ZF-worth 292 German auto parts maker on Wednesday announced the setting up of a ‘global sourcing office’ in Chakann, Pune, to capitalize on India’s cost competitiveness.

The automotive chassis and driveline components maker plans to triple its purchases from India over the next 18 days to 1x in a month in line with the Modi government’s “Make in India” campaign of 100 million euros.

The company said at the 2016 EF India Supplier Day, which it called “Winds of Change”, sourcing forging, casting and stamping materials from about 75-100 shortlisted suppliers in India. Horst Wiedmann, Director, Strategic Materials Management, ZF Group. Horst Wiedmann, Director of Strategic Materials Management at ZF Group, told The Economic Times that India essentially offers a double-digit cost advantage over other regions, but more importantly, the site has proven to be a reliable source of quality.

“We have been in India for the last 30 2000 years and have witnessed the tremendous growth of this market. Today, Indian suppliers have global standards and can participate in the Champions League, which is a very good source.” Wiedmann said.

This is just the beginning for ZF, said Wiedmann, Group Vice President of ZF. Wiedmann said that global sourcing is worth up to 1.8 to respond to floods and earthquakes to 20 1 billion euros in parts. It is very important to be able to run and ensure a diversified purchasing base.

“100 million euros is the first target and India can certainly buy more. As part of this change, India could also participate as a second or third source of supply. However, India could become a major source of certain components in the future. It is like a forge,” Wideman added.

The move to set up a global sourcing office in Pune will enable local managers to interact with the group’s supplier base more frequently and intensively. It also provides a window into the immediate needs of the global organization, offering suppliers access to a wide range of products, the company said.

The local sourcing team will also act as a regional product office, enabling ZF to develop a high-quality product portfolio for the Indian and international markets. The organization is streamlining its operations to create real-time connections with strategic suppliers who work closely together to enable a strategic growth process across products and support the GPO.

EF operates more than 30 in the Indian market Following the acquisition of TRWWW Automotive in May 2014, the company now has 28 branches serving both automotive and non-automotive industries.