CHAPTER 1PROFILE OF THE INDUSTRY THE INDIAN AUTO ANCILLARY INDUSTRY The Indian auto ancillary industry is one of India's sunrise industries with tremendous growth prospects. The automotive industry is an important segment of the economy in any country as it links many industries and services. The Indian auto industry has the potential to emerge as one of the largest in the world. Presently, India is: The largest two-wheeler manufacturer in the world. The largest three-wheeler market in the world. The second-largest two-wheeler market in the world. The fourth –largest commercial vehicle market in the world. The fortunes of the automotive components segment are linked to the performance of the auto industry. The auto ancillary industry gives support to sectors such as metals that includes steel, aluminum, copper and also to many other machine tools, plastics, rubbers, polymers, glass, surface transport. As per Indian Suppliers’ report, The automotive sector in India contributes to 5% of the nation’s GDP and 17% of the indirect taxes as a result of which the government last year charted a 10-year blueprint for the sector’s growth. This envisages the automotive sector “output reaching a level of $145 billion accounting for more than 10% of the GDP” by 2016.Indian auto industry has evolved around three major clusters: Mumbai-Pune-Nasik-Aurangabad (west); Chennai-Bangalore-Hosur (south); and Delhi-Gurgaon-Faridabad (north).Export-oriented companies have formed base in the west/ south regions, due to proximity to port. PROSPECTS: Looking forward, the industry displays tremendous potential in generating employment and boosting entrepreneurship in the country. The spate of new investment plans announced by global and domestic automobile manufacturers promises the emergence of India as a global hub for auto components. The industry is transforming, and the boost in demand will see the emergence of several new players in the industry. ASSOCIATION The Automotive Component Manufacturers Association of India (ACMA) is the nodal agency for the Indian Auto Component Industry. the entry of several global automobile manufacturers will bring in more regulation into the industry and see a pruning of the spurious market. committees and councils of the Government of India through which it helps in the formulation of policies pertaining to the Indian automotive industry.The vast market for auto components. ACMA is represented on a number of panels. to entering into either contract manufacturing or being ancillary units. whose production forms a majority of the total auto component output in the organized sector. The newly defined rules are specialization. It's active involvement in trade promotion. 15 Companies have won TPM Award. . 208 companies awarded to ISO14001. quality enhancement and collection and dissemination of information has made it a vital catalyst for this industry's development. 99 companies have been certified with OHSAS18001. development and delivery that hold the key to success in the auto component industry. and the diverse products and technology involved ensures a place and role for many. sending trade delegations overseas and bringing out publications on various subjects related to the automotive industry. technology up-gradation. 1company won Shingo Silver Medallion and 3 companies won the JIPM Excellence award. 11 Companies won the Deming prize 1company won Japan Quality Medal. Quality The industry has been making rapid strides towards achievement of world-class Quality Systems by imbibing ISO 9000/ISO14001/QS 9000/TS16949 Quality Systems. Among the smaller players in the unorganized segment. this implies moving away from being standalone companies. 445 companies have been certified with TS16949. Till now 562 companies in ACMA membership have been certified to ISO 9000. At the same time. ACMA represents over 600 Companies. Its other activities include participation in international trade fairs. brake assemblies & bearings. piston rings. Bajaj. etc.8 billion. In the year 2009-10. The company previously called as Hi-Tech ancillaries’ ltd after joint venture with Arai Seisakusho co ltd.Exports The industry has been exporting around 13% of its output. radiators. fuel injection parts. B. gaskets. Principal export items include replacement parts.R. auto bulbs & halogen bulbs.Lakshmi Narayanan both were the ex-employees of Fenner (India) ltd. Honda. clutch facings. filter & filter elements. Having joint venture with Arai Seisakusho co Ltd Japan and Mitsubishi Corporation. Their good relationship made them to form this great venture in 1985. gears. tractor parts. spark plugs and body parts. fuel pump nozzles. head lamps. The company was founded by Mr.5 lakhs and with the manpower of 75 as a family owned concern. engine valves. Later the company entered into technical collaborations with m/s Mitsubishi Japan and with Arai Seisakusho ltd . Yamaha. Mr. motorcycle parts. Toyota. TVS. industry has exported US$ 3.Bangera and Mr.T. with the capital of Rs.Lakshmi Narayanan.R. The company was established to produce rubber components and oil seals for the world famous companies’ like Maruti Suzuki. Japan. PROFILE OF HI-TECH ARAI PVT LTD MADURAI Hi-Tech Arai Ltd is a Madurai based oil seals and automobile components manufacturing company. the company name has changed to Hi-tech Arai ltd. leaf springs.4. O-rings.Japan for manufacture of oil seals. molded rubber product. The percentage of collaboration is 88.T. reed valves.84% for Arai Seisakusho Ltd and14.29% for Mitsubishi Corporation B.BANGERA – MANAGING DIRECTOR . valves stem seals etc in1987. The company also owns 23 wind mills each with the capacity of producing 11 MW power. Among them 3 Promoter Directors 5 Directors from Arai Seisakusho Ltd 1 Director form Mitsubishi Corporation . The core belief is that it is possible to achieve zero defects and achieve leadership in the market. I-Tech Arai is controlled by 9 boards of directors. Hi-Tech Arai is the only manufacturer of reed valves in India.HI-TECH ARAI LTD Growing and achieving excellence through people is the motive of the organization. Comply with all applicable legislative. regulation and other requirements including those that apply to environmental aspects governing our activities.MISSION: To produce high quality products At competitive prices Combined with on-time delivery Strictly adopting environmental friendly processes. Manufactures high quality products at competitive prices by adhering to the system. . processes and procedures and continually improving the same. Achieve the above by creating awareness among our employees through proper training and providing conductive work environment. Promote energy savings and conservation of resources. VISION: 1993: Market leader in the country in 5 years 1997: One of the top 3 in the world and in the field of Oil Seals 2007: To become the preferred supplier of all customers 2010: Aims to touch 400 corore turn over by overtaking the past one of 294 crore QUALITY & ENVIRONMENTAL POLICY Strive for continual improvement of our quality performance by meeting the changing requirements of our customers and our environmental performance by prevention of pollution and maintenance of wastes. . 1995: Fourth unit in K Pudur. Japan. 1990: Totally professionalized. 2006: First Export order from China. 1991: Awarded best SSI unit in the District. 1994: Hi-Tech Ancillaries changed to Hi-Tech Arai Ltd. 1986: First unit in Tanakkankulam was started. 1992: Awarded best SSI unit in the State. 2003: The Company was accredited ISO 9001:2000 Certification 2005: CII & APAC awarded ³Best Industry practicing the HIV/AIDS Prevention´ for its Aids prevention and control project. 2003: Awarded best SSI unit in the State Level. 1995: New compounding unit in Kappalur. 2000: Madurai jasmine quality circle (National level) 2000: Initiation of Environment Management System certification Program &obtained the certification in July 2001: White raised quality control won1st prize in state level & national Level. 1987: Technical collaboration with Arai Seisakusho Company Ltd.MILESTONES: 1985: Hi-Tech Ancillaries was registered. Japan. 2000: Won 1stprize on quality circle convention at state level & regional Level. 2002: Award from Keihin Lie Ltd Pune for cost optimization. 1993: Third unit in K Pudur was started. 2001: Quality award from Lucas TVS Ltd. 1991: Second unit in Trichy was started. 1997: Fifth unit in K Pudur (dedicated to MUL) 1999: Most modern factory at K Pudur. 1994: Joint venture with Arai Seisakusho & Mitsubishi Corporation. 2010: Himalaya quality circle of Hi-Tech Arai ltd won the ³Par Excellence Award´ in the national convention on quality concepts-2010held at Visakhapatnam. Company products: Oil seal ‘O’ Rings Reed valve Assembly Joint carburetor Moulded Rubber Products PROFILE OF PRODUCTS .2008: Received ISO TS-16949:2002. b) O Rings: .. transmission. - Failure of oil seal in engine parts may lead to a serious damage to the vehicle. - Oil seals are especially meant for preventing oil leakage particularly in two wheelers & four wheelers like wheel hubs.a) Oil Seal: - Oil seal is a micro precision product. front fork. and gear shift arm etc. carburetors etc) to avoid or stop leakage of fluid gas from the system. c) Join carburetor: .- Circular products having round cross-section or any customers specified sectional from which just fits in assemblies (pumps. c) Reed Valve Assembly: - Reed valve assembly is used in all modern two stroke engines as a device to control over air fuel mixture sent into the engine combustion chamber. - Reed valve assembly ensure complete combustion of fuel inside the engine combustion chamber for avoiding emission of unburned gases thereby contributing towards pollution control. - It is used for fuel efficiency and optimum output. . so as to meet the Exact working conditions of particular model of vehicles. - Usually the moulded rubber products reduce the noise.• It is a device that blends air and fuel for an internal combustion engine • The carburetor works on Bernoulli's principle: the faster air moves. stroke Vibrations and protect certain other components from dust. the lower its static pressure. d) Moulded Rubber Products: - Moulded rubber products are the products developed to suit the specifications and design of customers. and the higher its dynamic pressure. moulded products .Water. oil etc. - The company is the single source of supply for throughout the country.
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