THE INDIAN SUPPLIER REPORT Published by SupplierBusiness Ltd, An IHS Global Insight Company 2 St Paul’s Street Stamford Lincs PE9 2BE United Kingdom Tel: +44 (0) 1780 481712 Fax: +44 (0) 1780 482383 Internet: http://www.supplierbusiness.com E-mail:
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[email protected] The Indian Supplier Report Contents Chapter 1: India: An Introduction .............................................................................................. 10 1.1 1.2 1.3 1.4 1.5 1.6 A Large Market Growing Steadily ................................................................................................ 11 Business Climate, Financial Markets and External Sector .......................................................... 12 English-Speaking Workpool and the Demographic Dividend ...................................................... 13 Low Cost Sourcing Country – Contract Manufacturing, Research, Design ................................. 14 Infrastructure – Roads Getting Top Priority ................................................................................. 14 Natural Resources ....................................................................................................................... 15 Chapter 2: Indian Market Outlook and Forecast ...................................................................... 16 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 India survives the slowdown of 2009 ........................................................................................... 17 Steady growth over the next decade ........................................................................................... 18 Total vehicle production to double in 10 years ............................................................................ 19 Passenger car market will remain small car centric ..................................................................... 19 Tata Nano segment will be a major volume generator ................................................................ 21 Maruti-Suzuki will continue to lead the car market....................................................................... 22 Emergence of India as a small car manufacturing hub hampered ............................................... 23 HCV market sees major collapse in 2009 and will take years to recover .................................... 24 Infrastructure growth a roadblock towards move to high tonnage in the HCV sector .................. 25 Chapter 3: Indian Auto Industry ................................................................................................. 26 3.1 3.2 3.3 3.4 3.5 3.6 From the Maruti 800 to the Tata Nano......................................................................................... 27 Key Vehicle Market Characteristics ............................................................................................. 29 Engineering and Design Capabilities ........................................................................................... 30 The Indian Auto Component Industry .......................................................................................... 30 Auto Component Exports ............................................................................................................ 33 Integrating with World Standards................................................................................................. 34 Chapter 4: Government and Policies ........................................................................................ 35 4.1 4.2 4.2 a: 4.2 b: 4.2 c: 4.2 d: Introduction .................................................................................................................................. 36 Taxation ....................................................................................................................................... 36 Corporate Tax ........................................................................................................................................ 36 Value Added Tax .................................................................................................................................... 36 Excise duty ............................................................................................................................................. 37 Customs duty ......................................................................................................................................... 37 4.3 4.4 4.5 Trade Policies .............................................................................................................................. 38 Foreign Collaborations ................................................................................................................ 39 State Level Policies ..................................................................................................................... 40 Chapter 5: Evolution of the Indian Supplier Industry .............................................................. 41 5.1 5.2 Before 1985 - The era of licenses................................................................................................ 42 1983-1995 – The years of growth ................................................................................................ 42 © SupplierBusiness Ltd 2009 3 The Indian Supplier Report 5.3 5.4 5.5 5.6 5.7 5.8 1996-2005 – The emergence of ambition .................................................................................... 44 Integration of the Indian industry with the globe .......................................................................... 45 Automotive clusters – their evolution and importance ................................................................. 45 Aggressive expansion by Indian suppliers ................................................................................... 48 Consolidation in the Indian supplier industry: .............................................................................. 51 International acquisitions by Indian suppliers .............................................................................. 53 Chapter 6: Challenges facing Indian suppliers ........................................................................ 57 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 Uncertain Economic Scenario ..................................................................................................... 58 End user/ Consumer end credit squeeze .................................................................................... 58 Project finance & Industrial credit inaccessibility ......................................................................... 58 Margins ........................................................................................................................................ 59 Winning new business from new OEMs ...................................................................................... 60 Establishing export credentials .................................................................................................... 61 Emerging clusters ........................................................................................................................ 62 Logistical spreads – new clusters ................................................................................................ 63 Attrition ........................................................................................................................................ 63 Introducing new materials/ technologies ...................................................................................... 64 Currency ...................................................................................................................................... 65 R&D impetus ............................................................................................................................... 65 Going global ................................................................................................................................ 65 Chapter 7: India OEMs and their product plans ....................................................................... 67 Tata Motors .............................................................................................................................................. 68 Maruti-Suzuki ........................................................................................................................................... 68 Hyundai Motors India ............................................................................................................................... 69 Mahindra .................................................................................................................................................. 69 Toyota ...................................................................................................................................................... 70 VW ........................................................................................................................................................... 70 Ford.......................................................................................................................................................... 70 GM ........................................................................................................................................................... 70 Nissan ...................................................................................................................................................... 70 New Truck ventures ................................................................................................................................ 71 Chapter 8: Company Profiles ..................................................................................................... 72 Amalgamations Group .......................................................................................................................... 73 Amco Batteries ....................................................................................................................................... 76 Amforge Industries ................................................................................................................................ 78 Amtek Auto ............................................................................................................................................. 80 Anand Group .......................................................................................................................................... 84 Apollo Tyres ........................................................................................................................................... 88 Asahi India Glass ................................................................................................................................... 91 © SupplierBusiness Ltd 2009 4 The Indian Supplier Report Ashok Iron Works .................................................................................................................................. 94 Ashok Minda Group ............................................................................................................................... 95 Auto Ignition ........................................................................................................................................... 98 Autoliv IFB .............................................................................................................................................. 99 Automotive Stampings & Assemblies Limited ...................................................................................101 Axles India Limited ...............................................................................................................................104 Bagla Group...........................................................................................................................................105 Bajaj Motors...........................................................................................................................................108 Banco Products.....................................................................................................................................110 Bharat Forge ..........................................................................................................................................112 Bharat Gears..........................................................................................................................................117 Bharat Seats ..........................................................................................................................................119 Bhushan Steel .......................................................................................................................................121 Birla Corporation...................................................................................................................................123 Birla Tyres .............................................................................................................................................125 Bosch India ............................................................................................................................................127 Brakes India ...........................................................................................................................................130 Caparo Maruti ........................................................................................................................................132 CEAT ......................................................................................................................................................134 Ceekay Daikin .......................................................................................................................................137 Clutch Auto ............................................................................................................................................139 Continental Engines .............................................................................................................................142 DCM Engineering ..................................................................................................................................144 Delphi .....................................................................................................................................................146 Delphi TVS .............................................................................................................................................148 Denso India ............................................................................................................................................150 Emcon Technologies ............................................................................................................................152 Endurance Systems ..............................................................................................................................154 Enkei Castalloy......................................................................................................................................158 Exide Industries ....................................................................................................................................160 Federal Mogul Goetze ...........................................................................................................................163 Fenner India ...........................................................................................................................................165 Fiem........................................................................................................................................................167 Gabriel India ..........................................................................................................................................169 GKN Driveline India...............................................................................................................................172 GKN Sinter Metals .................................................................................................................................174 Goodyear India ......................................................................................................................................176 Halonix ...................................................................................................................................................178 Harita Seating ........................................................................................................................................180 Hi-Tech Gears ........................................................................................................................................182 © SupplierBusiness Ltd 2009 5 The Indian Supplier Report IP Rings ..................................................................................................................................................184 Jay Ushin ...............................................................................................................................................186 Jaya Hind ...............................................................................................................................................188 JK Industries .........................................................................................................................................190 JKM Dae Rim Automotive ....................................................................................................................192 Johnson Matthey...................................................................................................................................193 Kalyani Forge ........................................................................................................................................195 Kalyani Lemmerz...................................................................................................................................197 Kinetic Engineering ..............................................................................................................................198 Krishna Maruti .......................................................................................................................................200 LG Balakrishnan....................................................................................................................................203 Lucas TVS ..............................................................................................................................................206 Lumax ....................................................................................................................................................208 Lumax Automotive Systems ................................................................................................................210 Machino Plastics ...................................................................................................................................212 Madras Engineering ..............................................................................................................................214 Mahindra Composites ...........................................................................................................................216 Mahindra Hinoday .................................................................................................................................218 Mahle Migma..........................................................................................................................................220 Mark Exhaust Systems .........................................................................................................................221 Metro Tyres ............................................................................................................................................222 MRF ........................................................................................................................................................224 Munjal Auto............................................................................................................................................226 Munjal Showa ........................................................................................................................................228 Neolite ZKW Lightings ..........................................................................................................................230 NK Minda Group ....................................................................................................................................232 NRB Bearings ........................................................................................................................................236 Omax Auto .............................................................................................................................................238 Pricol ......................................................................................................................................................242 Rane Brake Linings...............................................................................................................................245 Rane Engine Valves ..............................................................................................................................247 Rasandik ................................................................................................................................................249 Remsons ................................................................................................................................................252 Rico Auto ...............................................................................................................................................254 Saint Gobain Group ..............................................................................................................................257 Samkrg Pistons & Rings ......................................................................................................................259 Setco Automotive..................................................................................................................................261 Sigma Freudenberg NOK .....................................................................................................................263 Sigma Vibracoustic ...............................................................................................................................264 SKF India ...............................................................................................................................................265 © SupplierBusiness Ltd 2009 6 ............................................................................................................................................................................................................................................................................................................................................................................................277 Subros ..302 Tata Johnson Controls ....304 Tata Steel ..............................316 TVS Srichakra ..................................................................................................291 Systech .............................................................................312 Timken .........................288 Suprajit Engineering ..............................................................319 Ucal Fuel Systems .............................................................................................................................................284 Sundaram Clayton .............................................269 Sona Koyo Steering Systems .................................................................................306 Tata Toyo Radiators..............................................................................................................................................331 © SupplierBusiness Ltd 2009 7 ............................................................................................................................................................................................................................................................................267 Spectra Group ..279 Sunbeam Auto ...............................................................................275 Sterling Tools .............................................................299 Tata Ficosa .............................310 Technical Stampings Automotive..................................286 Sundram Fasteners .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................324 Victor Gaskets ............................................................................................................................................................................................................................................................................................282 Sundaram Brake Linings .................................296 Tata AutoComp ..........................................................................................................................................................314 Tube Investments..............................................................................................................................................................................................................270 Steel Strips Wheels ..............................................................................................................................................................................................................................................................................................................................................................327 Wheels India ..........................................................................................................................................................................................The Indian Supplier Report SKH Metal ..............................................................................321 Varroc group...329 ZF Steering Gear India ....................................................................................294 Talbros Automotive Components.................................................................................................. ................................................................7 models in 2005... 25 Passenger Vehicle Production..........1: Fig 1................................... 20 Fig 2................. 38 © SupplierBusiness Ltd 2009 8 ......................2: Fig 3....... Average volume per model 92k in 2005.............................1: Tata Nano segment volumes to 2018 ................................................................. 23 HCV market will take many years to come back to 2007 highs.........................4: Fig 2.1: Fig 2............................4: Fig 3......................................................................................................................................................3: Fig 3..................... 22 Maruti vs Tata vs Hyundai marketshare .............................................................................................................................. 13 Light Vehicle Sales 2005-15 ....................... 28 Market Share – Passenger Cars..........................5: Fig 3...... 30 Auto Components Turnover 2002-03 to 2015-16 ..............................3: Fig 2..... 18 Small car market in India ..... 27 Two Wheeler Production .......................2: Fig 2....................... 70k in 2015 ............................5: Fig 4.... 11 Foreign Exchange Reserves ..............................................................................................2: GDP Growth and Inflation (2001-02 to 2007-08).........1: Fig 3...... 31 Auto Components Production by Categories.. 25 models in 2015............................................................................................................................ 32 Peak Custom Duties 2001-02 to 2007-08 ...............................................................................The Indian Supplier Report List of Figures: Fig 1.. .......................... 43 Table 4..................1: Labour force and education ....5: Mergers & Acquisitions in the Indian supplier industry ....... 44 Table 4....................................................... 54 © SupplierBusiness Ltd 2009 9 .........The Indian Supplier Report List of Tables: Table 1.................................................................................................................................... 13 Table 2.........................................................4: New plant openings announced by Indian suppliers ...1: Suppliers where MUL has a stake.......................... 33 Table 4.........1: Auto Component Industry ...................................................................................................................................Statistics ........................... 52 Table 4.......6: Joint-ventures in the Indian supplier industry ............ 47 Table 4.............................................. 48 Table 4.................3: Automotive clusters in India ...............................................................................................................2: Volumes of the Indian industry (1996-2008) .. The Indian Supplier Report Chapter 1: India: An Introduction © SupplierBusiness Ltd 2009 10 . economists estimate that the growth rate is likely to be at near 7% levels following fears of a worldwide economic recession in wake of the US subprime crisis and the worst credit crunch seen in recent times. Fig 1. measured by gross domestic product (GDP) at current prices and exchange rates is estimated at US$ 1. © SupplierBusiness Ltd 2009 11 . The country’s economic output. agriculture and manufacturing contributing the rest equally.1 billion. according to the International Monetary Fund (IMF). While industrial growth.1: GDP Growth and Inflation (2001-02 to 2007-08) Despite the government targeting an average yearly growth rate of 9% in its Eleventh Five Year (2007-08 to 2011-12) plan for the economy. measured by the Index of Industrial production (IIP).1 A Large Market Growing Steadily India is the world’s largest democracy with a population of 1. with the tertiary sector accounting for half of the nation’s economic output. It is the second largest emerging market after China and the fourth largest economy in the world in purchasing power parity (PPP) terms. GDP has been growing at more than 8% levels since 2003-04. the highest since economic reforms were initiated in 1991.The Indian Supplier Report 1. it is still increasing at more than 10%. slowed in 2007-08. This also makes it the second-fastest growing major economy in the world after China.16 trillion. India is a service-led economy. Germany and Japan.5 billion in overseas acquisitions’* in 2007. the most notable being the Tata Group’s $12 billion buy of steel maker Corus Plc and British marquee brands Land Rover and Jaguar for $2. this is dwarfed by the amount of money.1 billion in 2007-08 (AprilDecember). according to the McKinsey Global Institute. The rupee appreciated by nearly 8% in early 2008 to Rs42 per dollar level. Demand is chiefly driven by the middle class.3 billion. thus increasing the cost of borrowing for corporates and depressing consumer credit. Indian companies spent $32. the nation’s largest car maker.6 billion in 1997-98 to $7. as well as multinationals such as General Motors Corp and Nokia are spending money on building factories and other infrastructure in the country. grew 22.6% to $124. Foreign Direct Investment (FDI) in the country grew from US$3. However. is growing at 6% plus levels forcing the government to raise interest rates more than five times in the past year. © SupplierBusiness Ltd 2009 12 .5% to $185.7 billion. hurting overseas sales growth and realizations of export-led companies but has in November 2008 depreciated to around 48 per dollar. which is estimated at 50 million by National Council for Applied Economic Research (NCAER). according to Goldman Sach’s BRICs report.2 Business Climate. This consuming class is estimated to multiply by more than 10 times to 583 million by 2025. India has a 1% share in world merchandise exports.The Indian Supplier Report The yearly per capita income is estimated at more than $2. Financial Markets and External Sector Business and consumer confidence in India remains optimistic in the long run despite a stronger rupee vis-à-vis the dollar (though it has fallen by as much as 20% towards the end of 2008). measured by the wholesale price index (WPI). At the same time. steel and aluminum. By 2035. France. The country’s foreign exchange reserves tripled in the past three years to $309 billion at at its peak in the mid of 2008 then reducing to approximately $250 billion towards the end of the year as the global economic crisis bore down on the economy. India’s GDP in US dollar terms is expected to outstrip the economic output of Italy.6 billion. while imports grew 24. and Reliance Industries Ltd.500 (PPP terms) and 61% of the GDP is driven by private consumption. Exports in 2006-07. The fall in global commodity prices around have some what helped ease the inflation to just below 10% level in November 2008. the last year for which complete data is available. Inflation. increasingly confident Indian companies are spending in buying overseas acquisitions. both Indian companies such as Maruti Suzuki India Ltd. an inflation rate that is hovering around five-year highs and higher prices of raw materials such as crude oil. 1. the largest non-state owned petroleum-to-retail conglomerate. 419. Nos. labour law reforms are remain to be introduced and companies are subject to the jurisdiction of as many as 10 Acts of parliament. encourage labour intensive industries and is introducing skill development plans* to harness this “demographic dividend. Nos.9% in 2006 to 68.2: Foreign Exchange Reserves Source: ACMA 1. Nos.3 English-Speaking Workpool and the Demographic Dividend English is the primarily language used to transact business and legal matters in India and the country has the largest* English-speaking manpower in the world. This is in sharp contrast to the ageing population of developed regions such as the United States of America. The country’s total labour pool is estimated at 419.203 1.4% in 2026. European Union.195 1.5 million. Nos. Table 1. India is a young nation.5 1.1: Labour Force Labour force and education Million Nos. when it comes to the average age of its people and the proportion of population in the working age group of 15-64 years will increase from 62. The Indian government is seeking to ensure better healthcare. Japan and even China.006 930 385 Engineering Degree Colleges Engineering Diploma Colleges Institutes of Computer Applications Management Institutes Universities/National Institutions © SupplierBusiness Ltd 2009 13 .The Indian Supplier Report Fig 1.” Still. Design India is emerging out of the low cost sourcing level of competence to a stage where it is forced. It is estimated that the private and public secor will together spend $581 billion over the next five years to boost infrastructure.5 Infrastructure – Roads Getting Top Priority Infrastructure. Together. Outsourcing of components is not new to the automotive sector but there is an increasing interest in sourcing critical powertrain and electronic components from India. 1. the Airport Financing Plan. technical schools or hospitals. ports. Though it all started with a large labour cast advantage as the primary reason for the outsourcing of services in the late part of last decade.231 kilometres of which highways constitute only 2%. While the low wage cost advantage erodes.The Indian Supplier Report 1. the value proposition from is becoming the proposition. Of the $581 billion to be invested in infrastructure creation. continues to remain a key bottleneck to growth and development in India. capacity addition of 830 million MT in ports. Research.4% is expected to be spent on power generation including the so-called Ultra Mega Power Projects and 15. including the Golden Quadrilateral and the East-West Corridor. the National Maritime Development Programme and the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). All major OEMs and Tier-1 suppliers have set up buying houses in the country to continuously track suppliers and bid for their global contracts. and modernize 39 airports across the country and building 7 new ones. Tata Johnson Controls Engineering and Taco Faurecia Design Centra outsource these functions for their global operations.4% on improving the road network. © SupplierBusiness Ltd 2009 14 . these programmes envisage to add additional power generation capacity of about 58% or 70. The government has introduced several programmes such as Bharat Nirman for building rural infrastructure. whether it be roads.315. construct 8. as well as sectoral initiatives. A clear example of this is the large amount investment in R&D captive units and outsourced here by leading companies such as Bosch and Delphi. OEMs like VW plans to source parts worth $1 billion per annum from India.000 MW. to add value to its services.4 Low Cost Sourcing Country – Contract Manufacturing. due to rising wages. 30. Further design and engineering firms such as EDAG. such as the National Highways Development Programme (NHDP). in the rest past we see a definitive addition in value in outsourced services. However they carry 40% of the total traffic. The road network in India is around 3.737 of National Highways. India has the fourth largest reserves of coal in the world (235 billion tones). the government has given in-principle approval for special economic zones (SEZs).The Indian Supplier Report In addition. fourth largest reserves of bauxite. (2.5 billion).3 million sq km. A vast and diversified geography has endowed India with an abundance of several natural resources that are key raw material in many sectors within the country including the automotive industry. and the second largest in Asia. used to produce aluminium.000 crore ($17. steel and non-ferrous metals such as aluminium. Most raw materials such as iron. © SupplierBusiness Ltd 2009 15 . some of which such as the one at Mundra are expected to attract an investment of Rs 70. 1. copper and plastic are manufactured in the country.6 Natural Resources With an area of 3. India is the seventh largest country in the world.4 billion tones) and fifth in world reservoirs of Iron ore (24 billion tones). in terms of area. The Indian Supplier Report Chapter 2: Indian Market Outlook and Forecast © SupplierBusiness Ltd 2009 16 . 24 million units.000 units in 2009. the trend has improved in later months with a somewhat arrest of the decline.000 units. from 1. According to forecast data from automotive forecasting firm IHS Global Insight. While the start of the year saw HCV sales decline by more than 50% year-on-year. a resilient economy that has not slumped and weakening of interest rates from their peak. However.8 million units. from 445. In contrast.000 units in 2008.29 million in 2008.000 units in 2008. from 1. Since then the market has stayed in an uptrend. india (alongwith China) would be amongst one of the few significant global markets to deliver positive growth in 2009. However. According to a recent IHS Global insight forecast. While passenger car sales are forecasted to grow by 4. the fall has been severe across many developed economies. thanks to new model launches. In North America. sales are expected to fall. from 13. February saw a sharp rebound. car sales in Western Europe are expected to fall by nearly 9% to 12. more so as most other automotive markets are in a downturn in face of the ongoing global economic crisis. The market has been hit very hard by a slowdown in infrastructure development & construction activities.000 units in 2009. IHS Global Insight forecasts LCV sales to 453. a growth of 1. from 223. with sales growing 22% at 115. waiting for interest rates to come down.The Indian Supplier Report The Indian automotive market stays promising for car manufacturers. the Indian car market has been holding up well in 2009.73 million units in 2008. The start of the year 2009 was a bit weak as buyers anticipated India to be hit hard by the global economic meltdown.35 million units. Passenger car sales in January were down 3. Similarly. the HCV sector has been badly hit.56 million units in 2008. © SupplierBusiness Ltd 2009 17 .000 units in 2008. from nearly 48 million units in 2008. However. 2. Light vehicle sales in 2009 are expected to grow by nearly 4% to 1.1 India survives the slowdown of 2009 The year 2009 has been quite brutal for the global auto industry. Mirroring global HCV sales trends. Indian HCV sales are forecasted to drop by around 39% to 136. from 8. global passenger car sales in 2009 are expected to decline by 13% to 41.7% in 2009 to 1.000 units.35 million units. sales have been in the negative territory on a year-on-year basis. Hardening of interest rates have not helped in growth as potential buyers have delayed purchases.8%. to 6.2% at 110.36 million units in 2008. from less than 95.5 million units. by more than 25%. 1: Light Vehicle Sales 2005-15 Light Vehicle Sales 2005-15 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 2005 2006 2007 2008 2009 Cars 2010 LCV 2011 2012 2013 2014 2015 Total LVs Data Source: IHS Global Insight Further. IHS Global Insight forecasts the car market to double. however.and long-term. the market is projected to grow by 11. by 2010. The real growth in passenger car sales volumes from the Nano will only start coming in 2011. in 2010.6%. Annual car sales of slightly more than a million units per year and a parc of 10. The penetration levels are rather low as one moves out of the big cities to the smaller towns. strong youth-inclined demographics. Sales are expected to ride on the strong growth projected for the Indian economy. by 2016.2 billion. India has the right base for a healthy demand. With a population of 1. has been undermined by the costs of shifting the plant and the availability of finance to potential buyers. over the 2008 sales.The Indian Supplier Report 2. add significantly to demand. the Indian market will continue to stay lucrative as sales will grow steadily in the mid. Its contribution. This presents a lot of scope for sales to grow. increasing purchasing power and growth in urbanization.76 million cars means that there is less than one car per ten individuals. Fig 2. The Nano will. On the light-vehicle side. © SupplierBusiness Ltd 2009 18 .2 Steady growth over the next decade India is a very under-penetrated market. Passenger car sales are further forecasted to cross the three million units per year mark by 2018. Most of the growth in LCV sales will come from the growth in the micro-truck segment. driven by a strong growth in infrastructure sector and an increase in construction activities. 2. The Ace has proved to be extremely popular as a cargo vehicle in smaller towns and semi-urban areas and already a number of competitors have come up in the form of the Piaggio Ace.000 (USD 8000). sales are expected to double. small cars (A segment + B segment) are likely to account for 82% of total passenger car market. though micro-trucks like the Tata Ace may find a healthy export demand. Price sensitive nature of the market: According to Indian government estimates of July 2009. LCV and HCV production is expected to stay linked to the domestic market. or equivalent to about eleven © SupplierBusiness Ltd 2009 19 . mostly for small cars. IHS Global insight forecasts HCV sales to cross 2008 levels only by 2014. doubling over the 2008 production levels. However. Passenger car production is expected to cross the three million units per year mark by 2015.4 Passenger car market will remain small car centric India is a small car centric market. 2. The main reasons for the market to stay small carcentric are: 1. the growth would be even healthier.3 Total vehicle production to double in 10 years On the production side. Hyundai. The most popular cars in the country are priced at INR 375. lead by the Tata Ace. Their weightage would still be 77% in 2017. A and B segment cars account for the majority of the market and will continue to represent the majority of the market in the long-term future. In 2009. Maruti-Suzuki. the per capita income in India was a little less than USD 750. Force M4 Super and HM Winner.The Indian Supplier Report On the LCV side. according to IHS Global Insight forecasts. by 2019. thanks to many manufacturers using India as a global production base. over the 2008 figures. it will take many years for HCV sales to rebound to 2008 numbers. It is further expected to cross four million units per year by 2018. HCV sales will also rebound. GM and Nissan are expected to base a large percentage of their global small car production in India. After the very strong dip in sales expected to happen in 2009. These are also the largest markets for passenger cars in the country. Space constraints: Indian cities are very densely populated. 70k in 2015 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 2004 LOW COST CAR SANTRO WAGON R NANO 2005 SPARK 2006 2007 C2 800 MARCH EFC 2008 2009 500 ALTO PIXO UP 2010 2011 AMBASSADOR A-STAR TWINGO 2012 ECO 2013 2014 I10 RITZ 2015 SMALL CAR ZEN ESTILO X4 NEW ALTO INDICA INDICA VISTA Data Source: IHS Global Insight © SupplierBusiness Ltd 2009 20 . road space and parking spaces are constrained and many people prefer small cars. A study of the current future model programmes of vehicle manufacturers in India reveals that there would be about 25 small car models by 2015 and cumulatively they would account for 1. Due to the dense nature of these cities. This is a strong factor in favour of small cars as they provide better fuel efficiency. This makes the market one of the most price sensitive market in the world. real Indian fuel prices are one of the highest in the world.7 models in 2005. Fuel prices: Current petrol prices in India are INR 47 (USD 0. Average volume per model 92k in 2005. 3. 2.72).95) while diesel prices are INR 34 (USD 0.000 cars. 4.The Indian Supplier Report times annual income of an individual. 25 models in 2015. each model on an average accounting for 70. Cost of components: The price sensitivity of the market further reflects in cost of spare parts.8 million cars. Fig 2. When taking into factor the per-capita-income.2: Small car market in India . This is a significant average volume per model and is representative of the dominance of the small car segment in the future. Small cars often have lower priced components than large cars and this is a strong factor in favour of small cars. The Tata Nano is aimed at rural. Production has started in a limited way at Tata’s Pantnagar facility and customer deliveries face production constraints.000 bracket. There are two deluxe versions available and we expect these to be more popular than the standard variant.000 makes a very attractive proposition.000 (USD 2100). Deliveries beyond that will commence in 2011. the Maruti 800 sells for INR 200. However. The bookings received till now by Tata Motors are 85% tilted towards the top two variants of the Nano. Tata finally ended up pricing the base version of the Nano at INR 100. considering Tata is offering delivery to the first 100. © SupplierBusiness Ltd 2009 21 . the Nano’s success faces constraints.000 (USD 2100) ex-factory. The main plant at Sanand. However. In terms of design-to-cost approach. About the Nano: The Tata Nano is a four-door hatchback with a rear-engine. rear-wheel drive powertrain allignment. The average popular motorcycle in India retails for INR 50. still a very attractive price as the nearest rival. semi-urban areas and tier-II cities.000. with India’s shaky infrastructure and lack of space in big cities. Gujarat will only start in 2011 and we expect volumes to get a boost from then.000 so a Nano at INR 100. The business proposition was to transfer customers from the very lucrative motorcycle market (7 million + unit sales per annum) to the Tata Nano.5 Tata Nano segment will be a major volume generator The Tata Nano has been a hugely anticipated model in the Indian market and Tata received more than 200.000 and most popular cars sell in the INR 300. the base version of the Nano is sans air-conditioning. the Tata Nano even goes beyond the Renault / Dacia Logan which had been the benchmark till date.000-350.000 customers only by the end of 2010. Tata Motors started with the ambitious target of offering the Tata Nano at a starting price of INR 100. This is a significant number.000 orders. The project holds great promise of converting thousands of two-wheeler commuters into car buyers due to its affordability. The project has been considerabely delayed due to the Singur land acquisition crisis. The car is designed in such a way that it minimizes costs to an extent unseen in the global automobile industry till date. which translates into an on-road price of INR 125. something of a must in Indian weather conditions.The Indian Supplier Report 2. The delay has also allowed competition to catch up. thanks mostly to the emergence of the Tata Nano. VW and Nissan.3: Tata Nano segment volumes to 2018 600000 500000 400000 300000 200000 100000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tata Nano Bajaj Nissan Data source: IHS Global Insight Apart from the Renault-Nissan-Bajaj small car. close enough to Nano’s expensive variants. Hyundai and Maruti-Suzuki are rumoured to be working on small cars to be priced below their existing portfolio of products. While the overall market-share of the company is expected to fall in the midterm future.121 units in 2008. a formidable number in a total marker of 1. 2. the company would still account for a large part of the car market and retain its market leadership position. While the advent of the Tata Nano and the launch of small cars from other competitors like Hyundai. Fig 2. the company accounted for 54% of all passenger cars.2 million cars. The project faces challenges in the form of costs and the afore-mentioned volume constraints. The Maruti Alto sold 209. The small car is expected to roll out in 2012. At this time. In 2008. We expect competition to come from the Renault-Nissan-Bajaj small car which is under development currently. This would price their new offerings at around INR 200.6 Maruti-Suzuki will continue to lead the car market Maruti-Suzuki has a formidable lead in the Indian car market due to its dominant position in the small car segment.000 mark. © SupplierBusiness Ltd 2009 22 . this is the only confirmed competitor to the Nano under development.The Indian Supplier Report The delay in productionising the Nano has taken a toll on the project. 62 14.00 10.16 14.The Indian Supplier Report Maruti would be under pressure to maintain its market share.86 12.53 48.98 19.00 19.84 33.00 40.25 34. current generation Alto only manufactured in India) and Hyundai (Santro / Atos / ATos {Prime global production hub.89 38.12 34.02 21.39 20.07 12.02 19.03 11.00 30.93 12. Manufacturing in India offers a number of advantages.46 22.21 18. These included Maruti-Suzuki (previous generation Alto exported to Europe from India.27 20.76 42.00 2008 2009 2010 2011 12.98 11.00 53.Maruti vs Hyundai vs Tata 60. India is a low cost manufacturing centre with a qualified talent pool 2.83 13. main amongst them being: 1. i10 global production hub). The manufacturing base is modern and is accustomed to global manufacturing techniques and best practices 3. Fig 2.82 13.33 19. A large pool of automotive component suppliers who have attained the required quality and delivery standards to meet global requirements © SupplierBusiness Ltd 2009 23 .4: Maruti vs Tata vs Hyundai marketshare Market shares .29 32.00 50.27 20. According to IHS Global Insight forecasts.87 13.57 19.00 0.40 2012 2013 2014 2015 2016 2017 2018 Maruti Data source: IHS Global Insight Hyundai Tata 2.81 15. Maruti-Suzuki would still account for a 34% share of the market in 2018. some manufacturers have identified India as a production centre for small cars and have based the global production of some models in their Indian plants.69 36.37 35.64 53.7 Emergence of India as a small car manufacturing hub hampered Over the last five years. Geographical location presents a challenge in the form of high logistics costs. 4. Sales still are facing a lot of pressure and continue to be in negative turf. HCV sales in India suffered a huge collapse. 3. 3. Infrastructure problems including inadequatre road network and inefficient ports mean that the delivery of cars takes a longer time than it should. fearing the uncertain economic climate and the global slowdown. HCV sales were adversely affected in 2008-2009 due to the following factors: 1. IHS Global Insight forecasts HCV sales to fall by 35% in 2009 and it will take many years for sales to come back upto 2008 levels. Korea and EU. Most infrastructure projects slowed down or stalled due to hardening interest rates and HCV demand linked to these projects evaporated. deciding to wait. 2. 2. declining by more than 50% on a year-on-year basis during the early part of 2009. This made HCV owners and fleet buyers to defer buying new vehicles. However.The Indian Supplier Report 4.8 HCV market sees major collapse in 2009 and will take years to recover Towards the end of 2008. Most of the HCVs in the market are financed and a high interest component negated the business proposition. Absence of FTA with EU gives an advantage to countries like South Korea who have an FTA with EU. 2. Hyundai was facing problems due to labour unrest and the inefficient Chennai port. Some of these factors have been decisive in Hyundai deciding to shift the i20 export production to Eastern Europe. High interest rates made truck finance very expensive. especially when shipping to Western Europe. © SupplierBusiness Ltd 2009 24 . labour problems etc drive the cost and effort of manufacturing. Local problems like high power costs. Many fleet buyers postponed buying decisions. hoping that rates would stabilize soon. Manufacturing in India for the global market ensures high volumes in local production which helps in driving down the prices of components and successfully negotiating the same with suppliers. The tilt towards Eastern Europe was aided by the recent FTA between S. India also poses a number of challenges for global manufacturing. main amongst them being: 1. However. the HCV segment in India was also expected to move towards higher tonnage. this has not been the trend.5: HCV market will take many years to come back to 2007 highs 250000 208471 200000 172790 161577 150000 120915 99221 100000 86721 50000 50446 16173 11910 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 17392 88149 69137 16271 38198 15252 47075 16000 53996 19058 20571 105577 107647 87382 57840 61773 63405 61550 19448 20776 23365 2015 23562 2016 21369 2017 69312 76207 103883 90073 79567 50433 77606 85366 83160 98222 105692 98185 134827 163543 158604 213188 197794 180161 214620 202714 Medium Heavy Buses Total Data source: IHS Global Insight 2. High-tonnage trucks are often in the articulated (tractor-trailer) format which are difficult to manouevere in congested Indian cities.The Indian Supplier Report Fig 2. 3. While the choice of high-tonnage truck models has improved. developing markets. their contribution as a percentage of sales has not improved significantly. Indian highways are not wide enough to accomodate bigger trucks. © SupplierBusiness Ltd 2009 25 . This is linked to development of better roads that permit more axle weight and higher speeds. Also. The reasons are manifold: 1.9 Infrastructure growth a roadblock towards move to high tonnage in the HCV sector Like all growing. Bigger trucks involve high investments and fleet owners are hesitant to do so. 2. better roads would enable drivers to stay operational longer without fatigue and will increase the average road distance travel per day. The Indian Supplier Report Chapter 3: Indian Auto Industry © SupplierBusiness Ltd 2009 26 . and as a corollary the component industry. ACMA Over 10 million vehicles including two-wheelers are sold every year.1: Passenger Vehicle Production Source: SIAM. © SupplierBusiness Ltd 2009 27 . India is the second largest two-wheeler market in the world. Almost all the major auto-making groupings with the exception of PSA-Citroen SA are assembling vehicles in the country and/or sourcing components. Fig 3. this sector has grown at a CAGR of nearly 15% in the past four years. has changed vastly in the 17 years since liberalization.The Indian Supplier Report 3.1 From the Maruti 800 to the Tata Nano The Indian vehicle making. Despite a slowdown in vehicle sales in 2007-08 as a result of a rise in lending rates and decrease in credit availability. almost 50 new products and variants are introduced in the market each year. The Indian Supplier Report Fig 3.500. Some. Some of them have developed their own vehicles such as Mahindra & Mahindra with its Scorpio and Tata Motors with its Indica and now the Nano. 2009-10 figures are projections 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. Companies are now looking beyond the domestic market by boosting their overseas sales and buying foreign companies whether for technology. © SupplierBusiness Ltd 2009 28 . However. customer base or physical assets. This envisages the automotive sector “output reaching a level of $145 billion accounting for more than 10% of the GDP” by 2016. such as Bharat Forge and Tata Motors Ltd – when Land Rover and Jaguar will be integrated – derive about half their total revenues from foreign markets.2: Two Wheeler Production Source: SIAM. the cheapest car in the world with a tag of $2. engineering and design capabilities. Indigenous vehicle and component makers are investing in research and development. India’s auto industry is maturing not only in quantitative terms. has helped them upgrading to mid-sized cars (such as the Chevrolet Aveo. coupled with high fuel prices and a preponderance of first-time drivers has led to the Indian consumer demanding value-for-money rides and hence. While this has resulted in the development of the Tata Nano. design and development facilitites and distribution networks. passenger car ownership at 8 per thousand people is way lower than global average. it has also forced many a multinational carmaker including the likes of Ford and Honda to explore low cost cars for India. Marketshare in almost all segments – passenger vehicles. luxury car makers such as BMW and Audi have set up assembly operations in the country in the recent years to cater to the growing number of first generation service sector entreprenuers. all vehicle manufacturers are investing a combined $15 billion in the next four years in building factories. two-wheelers and tractors is concentrated among two or three major players. every seventy five of hundred cars sold in India is a small car. Several car makers such as Suzuki and Hyundai now produce some of their key small car models such as the Alto and i10 respectively for the world market in India alone. Together.The Indian Supplier Report 3. A frugal mindset. The government too with its excise tax cut on this category of vehicles. Motorcycles continue to be the nation’s main mode of transport with an estimated 45 million households – nearly the size of the middle class* . Over 90% of the car market is in the grip of three players Maruti.2 Key Vehicle Market Characteristics A historical combination of factors including low growth in a socialist style economy. © SupplierBusiness Ltd 2009 29 . Tata Motors and Hyundai Motor India. which forms the mass of the employed population. For instance. seeks to promote this category and make India a small car hub. Also.owning a two-wheeler. Honda City) and demand for this segment has grown the fastest in 2007-08*. The growing disposable income of the middle class. A similar proportion of the two-wheeler market is concentrated in the hands of Hero Honda and Bajaj Auto. unavailability of credit and lack of choice in the vehicle market kept India’s vehicle penetration low. commericial vehicles. 3 Engineering and Design Capabilities A decade after the first indigenously developed car was introduced. 3. riding on its expertise in the informational technology sector and drawing on its large pool of low-cost engineering manpower. 3. Government policies to promote industrialisation in the hinterland is seeing some new factories built in Rudrapur in the hill state of Uttarakhand and Singur in the left-ruled West Bengal. © SupplierBusiness Ltd 2009 30 . even global companies such as General Motors and Honda.4 The Indian Auto Component Industry Concomitant to the growth in the original equipment manufacturer industry.3: Market Share – Passenger Cars Source: SIAM Production is spread over. India is gradually emerging as a base for automotive engineering and design.7 billion in 2003-04 to an estimated $18 billion in 2007-08. but not restricted to. India’s automotive supplier industry will grow from $6. Pune in the west and Chennai in the south.The Indian Supplier Report Fig 3. about 15 design institutes across the country have started special courses for automotive design. the three hubs of Delhi and its suburbs in the north. have invested in such facilities for their global programs. aided in part by increasing exports. In the last couple of years. Not only have local companies such as Ashok Leyland and Eicher Motor started their own engineering and design arms. according to the Automotive Component Manufacturers Association of India (ACMA). India’s auto component suppliers too have grown at a fast pace. The percentage of the overall production of auto components in terms of categories of products is shown in the following table: © SupplierBusiness Ltd 2009 31 .4: Auto Components Turnover 2002-03 to 2015-16 Source: MOHI Automotive Mission Plan (AMP) There are about 550 automotive suppliers in the organised sector and several thousand in the unorganised sector. are familyowned.The Indian Supplier Report Fig 3. All of them are ISO 9000 compliant companies and Indian companies have won 11 Deming Awards within the past five years. Most of the companies. including some of the largest ones. Indian vendors make a variety of components ranging from high precision parts for engines to forgings. The sales of the majority in this sector range between than $1 million to $5 million though some suppliers such as Bharat Forge and Motor Industries Co report annual revenues in the excess of $500 million. Visteon and J-Tekt. for many of whom the volume to opt for this system has come about only in the past 5 years. many of whom followed their multinational customers into India. Many Indian vendors.5: Auto Components Production by Categories Source: ACMA While tierisation is not very pronounced in the industry. Mobis. While some of these are independently operating in India. technical partnership or marketing arrangement. Tierisation. there is progress on this front. most have chosen to opt for a local partner be it in the form of a joint-venture. is linked to the maturity of the original equipment manufacture. Systems supply is still mainly economics driven and both Indian and foreign companies are learning from operations in developed markets or driven by new technology. India’s auto component market is also marked by the presence of a number of foreign companies such as Delphi. as a rule however. classified as Tier I locally. are at the same level as tier II and Tier III suppliers when they export to the developed markets. Bajaj Auto has minimized its investment in its newest factory in Rudrapur. For instance. © SupplierBusiness Ltd 2009 32 . Uttarakhand by opting for a systems supplies rather than small parts as is the norm in its other facilities. Denso.The Indian Supplier Report Fig 3. lower cost options in countries such as India and China has led to most multinational vehicle makers turn eastward when shopping for components.1% Turnover Exports Imports Investment Export as % of Turnover (Value in US $ million). Table 3.Statistics 2003-04 2004-05 8.65 trillion by 2015. The government’s automotive mission plan goes even further and envisages the total size of the auto component market at $40-45 billion in 2016. EGR etc. 3. exports have grown at a CAGR of 30%. Indian component makers sell in many overseas markets around the world with the US and EU accounting for 60% of the exports. the trend in India is not far behind.274 1428 3100 18. Though in India. it is yet to mass produce electronics for safety such as ABS.9% High labour and pension costs in the developed markets and the emergence of viable. the potential market for India and other low cost countries such as Thailand and Vietnam is estimated at 42% or $700 billion.692 1902 3750 19.5% 2005-06 12.700 1.The Indian Supplier Report Just as automobile manufacturers in developed countries increase the levels of electronics and computer-based applications in vehicles. This has resulted in auto component exports from India soaring at 20% plus levels per year in the past decade.000 2469 2482 4400 20. mandated in small cars in the developed countries.2% 2007-08 18. Of this.1: Auto Component Industry .000 3615 4938 7200 20.000 2873 3328 5400 19. Since 2002. according to an ACMA-McKinsey study. The report further says that the Indian auto component industry can aspire to increase its revenues to $2025 billion in exports. Estimated Source: ACMA 6.2 trillion in 2003 to $1.5% 2006-07 15. the recent rupee appreciation has shown that Indian auto component companies are losing some of their competitive edge with export growth rate declining to the lowest in the past five © SupplierBusiness Ltd 2009 33 . electronics are limited to engine performance and emission reduction systems such as ECM. Common Rail systems.5 Auto Component Exports Global auto component consumption is expected to grow from $1. Further. ACMA data says that over 75% of Indian component exports in 2006 were to vehicle markets compared with 35% a decade ago. airbags. Still. ESP etc.730 1. traditional vendors to these OEMs arerelocating or increasing production in these emerging markets to take advantage of the lower costs of production in these areas. They have also improved their sales to OEMs vis-à-vis the aftermarket in recent times. India has signed the 1998 Agreement of the World Forum for Harmonisation of Vehicle Regulations (WP-29). were made mandatory from 2005 and the next stage is scheduled for April 2010. aluminium and other such raw materials and are now working to increase productivity to reach the target set by the McKinsey report and the automotive mission plan. These standards are generally superior to BIS norms. It is scheduled to be completed by 2011. but not the parts sold in the aftermarket. India has also introduced emission norms – though with a lag to those in Europe and such developed markets. Called the National Automotive Testing and R&D Infrastructure Project (NATRIP). wherein it will participate in the formation of world standards.The Indian Supplier Report years. and a world class proving ground in Indore. the testing and homologation is done at the Automotive Research Association of India facilities at Pune and VRDE in Ahmedabad. At present. which are equivalent to Euro III norms. It plans to build testing centres and validation facilities for tractors and other off road vehicles along with a road accident data analysis facility. the Indian government is spending Rs 1.6 Integrating with World Standards Indian automobile industry standards are gradually integrating with world standards on emission. They are also vulnerable to increases in the price of steel. safety and noise. Automotive technical standards in India are governed by the Central Motor Vehicle Rules (CMVR) as well as by the Bureau of Indian Standards (BIS). The Bharat Stage III norms. the project aims at building independent automotive testing centres within the three automotive hubs in the country. The CMVR is based on ECE regulations and has come out with a specialized set of norms called the Automotive Industry Standards (AIS). To facilitate the adoption of safety and emission norms and for encouraging design and development of new vehicles and components in the country.718 crore in creating testing and research and developed facilities in the country. 3. © SupplierBusiness Ltd 2009 34 . but have led to a situation where in new vehicles and the components supplied to the programs are to adhere to AIS. The Indian Supplier Report Chapter 4: Government and Policies © SupplierBusiness Ltd 2009 35 . the introduction of VAT has not erased totally the cascading effect of taxes since many states still levy local taxes such as entry tax and Octroi and there is a Central Sales Tax of 2% which is levied on goods transported from one state to another. 4. FDI is also permitted under automatic route for setting up facilities under a Special Economic Zones (SEZ) and qualify for approval through automatic route subject to sectoral norms and for setting up 100% export oriented units. customs duties. which replaced the sales tax.1 Introduction The economic reforms started by the government in 1991 have changed the way business is done in India. CENVAT (which has replaced Excise duty) and service tax.2 b: Value Added Tax Since April 1. Firms in sectors such as automotive and biotechnology are allowed to deduct 150% of expenses incurred in research and development.that require government approval from the Foreign Investment Promotion Board (FIPB). After years of the Licence Raj. the automotive sector is deregulated. This has been visible in most sectors including the automotive sector. 2005. the government is considering extending this benefit for a further period of time. the new economic policies have done much to bring in foreign investment and promote external trade. which has seen several multinational companies enter the country in the past decade. most of the states* and union territories have adopted a value added tax. 4. The FIPB also grants composite approvals involving foreign investment/foreign technical collaboration. It also means that the government does not interfere with the operations of companies in the sector. Still. Foreign direct investment of up to 100% is allowed under the automatic route except in a few cases – typically that invoke non-compete clauses .2 Taxation India’s tax structure includes corporate and personal income tax. 4. Like a majority of other industrial sectors. This means it has to just follow the rules and Acts laid by the government such as the Companies Act and Labour Acts. the same as any other manufacturing company. There is © SupplierBusiness Ltd 2009 36 . Though this sop is allowed until 2010.2 a: Corporate Tax The corporate tax rate which has been left unchanged in the past two Union budgets is fixed at 30% plus surcharges.The Indian Supplier Report 4. when companies had to take the State’s permission to invest and produce. the import duty on completely built units (CBUs) of passenger cars is very high to discourage imports and promote investment in the country. and once all the other levies such as countervailing duty are added up.2 c: Excise duty CENVAT or excise duty is the tax on production and each company has to pay this before their products leave the factory. have been defined as vehicles with a length of not more than 4000 mm and powered by a petrol engine of capacity less than 1. Small cars. for the purpose of the concessionary rate of excise. In the Union Budget for 2008-09. thus doubling the price of an imported vehicle. which will abolish local taxes and CST and make the whole country a single tax zone. Also. The government and the states are now working together to move to a comprehensive Goods and Services Tax (GST) by the end of the decade. the effective rate of import duty is more than 100%. the customs duty on raw materials varying from steel to plastic is between 5 and 30%. 4. The auto industry.5 litres. The excise rate for this category of vehicle is 12% similar to those imposed on two-wheelers and buses. © SupplierBusiness Ltd 2009 37 .2 d: Customs duty India is a signatory of the World Trade Organisation and in line with its commitment to that organization has been consistently reducing its peak rate of customs duty. In comparison. 4. two-wheelers and buses to promote their demand and production in the country. The basic customs duty on a passenger vehicle is 60%.The Indian Supplier Report also a tax on services and new services are being made taxable every year. was a major beneficiary with the Finance minister cutting excise tax on several categories of vehicle such as small cars. The peak rate is currently at 10% and is likely to remain at this given rupee’s appreciation and cheaper cost of imports.5%* is currently levied on imports of auto components into the country.3 litres and diesel engine of capacity less than 1. too. the government reduced the basic CENVAT rate – levied on a majority of goods produced in the country – by 2 percentage points to 14%. All other passenger vehicles other than small cars attract an excise duty of 24%. A customs tariff (basic rate) of 7. which has been progressively reduced from 15% three years ago. Malaysia. 2004 and ending March 1.3 Trade Policies Since reforms began in the early 1990s. ranging from 50 to 75 to 100% reduction in tariffs. It has signed a Framework Agreement for a CECA with ASEAN. these items moved on a tariff reduction in three blocks beginning March 1. Philippines. including a few automotive components such as lighting equipment. with whom India has trade agreements. Indonesia and even Taiwan are using. While this has increased foreign trade. India has been steadily opening its markets to foreign companies thus aligning itself closer to WTO norms.1: Peak Custom Duties 2001-02 to 2007-08 4. India has also signed a Framework Agreement for a Free Trade Area with Thailand. suspension and transmission parts. as a conduit to dump products into India. The government has been aggressively pursuing bilateral agreements with several countries.The Indian Supplier Report Fig 4. Sri Lanka and Thailand. it has also given rise to concerns that countries such as China. especially its neighbours. Preferential Trade Agreements (PTAs) and Comprehensive Economic Cooperation Agreements (CECAs). For instance it has signed a PTA with the MERCOSUR block and Afghanistan and is negotiating one with Chile. 2006. Initially driven by an Early Harvest Scheme comprising 82 items. in the form of Free Trade Agreements (FTAs). © SupplierBusiness Ltd 2009 38 . Imports and exports are mostly decontrolled and foreign exchange issuance is no more limited to a paltry amount. deputation of Indian technicians abroad. project office or Such offices can undertake activities permitted under the Foreign Exchange Management Regulations. companies may own 100% equity for units in the automotive sector. liaison office/representative office. payment for engineering service and royalty. without any restriction on the duration of the royalty payments. Currently. it is subject to Indian laws and regulations as applicable to other domestic Indian companies. an application has to be filed with Registrar of Companies. payment for design and drawing. As a foreign company through a branch office. The RBI also governs payments for imports of plant and machinery and raw material not covered by the foreign technology collaboration approval. The terms of payment under foreign technology collaboration. 2000. which are eligible through the automatic route and by the government approval route. indigenously developed technology in foreign countries are governed by separate Reserve Bank of India (RBI) regulations and are not covered by the foreign technology collaboration approval. subject to equity caps in respect of the area of activities under the foreign direct investment policy. By incorporating a company under the Companies Act. products. The central bank is also authorized to allow allow payment for foreign technology collaboration by Indian companies under automatic route subject to the following limits: Lump sum payments not exceeding US$2 million Royalty payable being limited to 5% for domestic sales and 8% for exports. The royalty limits are net of taxes and © SupplierBusiness Ltd 2009 39 . The induction of know-how through foreign collaboration agreements are allowed either through the automatic route or with prior approval from the government. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor. Companies are free to acquire foreign technology either through buying other companies or licensing them. includes technical know how fees. Payments for hiring of foreign technicians.4 Foreign Collaborations A foreign company planning to set up business operations in India has the following options: 1. and testing of indigenous raw material. Once a company has been duly registered and incorporated as an Indian company. For registration and incorporation. 2.The Indian Supplier Report 4. 1956 through joint-ventures or wholly-owned subsidiaries. These are irrespective of the extent of foreign equity in the Indian company. States compete with each other to offer big ticket incentives to bring investment. © SupplierBusiness Ltd 2009 40 .The Indian Supplier Report are calculated according to standard conditions. the employment potential of the project and the negotiating power of the company.5 State Level Policies Each Indian state has its own industrial policy designed to attract investment and promote employment in that region. The central government also offer some incentives to promote investments in certain states such as the hilly regions in the north and north-east of the country. For this. exemption from value added tax. 4. These sops often include income tax holidays for a period ranging up to 10 years and has resulted in new mini auto hubs being created in Rudrapur and Haridwar in Uttarakhand. The extent of these incentives depend on the size of the investment. concessional rates for power and water etc. they offer various incentives such as land at concessional rates. The Indian Supplier Report Chapter 5: Evolution of the Indian Supplier Industry © SupplierBusiness Ltd 2009 41 . Some of these companies were traditional family owned businesses and most of the suppliers used by these OEMs were promoted by near and extended family members.The era of licenses The first phase of the industrial evolution was the period before 1983.2 1983-1995 – The years of growth During the early 1980s. Escorts and TVS entered into joint ventures with international players. two-wheeler supplier families consolidated around their OEMs in a system somewhat similar to the Japanese Keiretsu. initially focused on supplying Hero Honda only and their development outside the family was restricted. The government did not allow manufacturing units to function independently and capacities were capped. Mahindra & Mahindra in the utility vehicle segment and Bajaj Auto and TVS Motors in the two wheeler sector. A number of two wheeler manufacturers including Bajaj Auto. On the other hand Bajaj Auto developed suppliers like Varroc Group. In fact. Both companies had strong growing volumes which could support a group of allied suppliers entirely on their own. The early start and diversification has made the TVS supplier group one of the largest in India. Sundaram Clayton. During this phase there were very few OEMs with the major ones being Tata Motors and Ashok Leyland in the commercial vehicle sector. Munjal Auto Components and Rico Auto. Hero Group. A number of TVS Group suppliers also supplied to the commercial vehicle and passenger car sectors. However. 5.The Indian Supplier Report The historical evolution of the Indian supplier industry can be analyzed in three parts. This period was also the era of licenses. This decade is the time period when both Bajaj Auto and Hero Honda developed their individual group of suppliers. Sundaram Industries and Sundram Fasteners. the Indian government decided to remove the license system and allowed manufacturing companies the freedom to operate.1 Before 1985 . Sunbeam Industries. TVS suppliers did not constrain themselves to only supplying to TVS Motors. in some cases the Japanese partners like Honda (and its allied suppliers) Hero Honda initiated the development of suppliers like Munjal Showa. This was the period of emergence of key TVS Group suppliers like Brakes India. apart from some exceptions like Munjal Showa and Rico Auto. Hindustan Motors and Premier Automobiles in the passenger car sector. Endurance Group and Aurangabad Electricals. Both the groups also supported a number of supplier companies promoted by near and extended families. Sundaram Brake Linings. In the years after their formation. A unit had to take a license for This allowed only a restricted growth for the OEMs as well as the suppliers. 5. mostly © SupplierBusiness Ltd 2009 42 . Hero Honda’s core suppliers. 11 14. Bharat Seats etc were born. This was the phase when a number of suppliers like Krishna Maruti.28 15. Mark Exhaust. Support from Maruti-Suzuki involved not only a technical jointventure with a number of Suzuki suppliers in Japan but also an equity participation in the supplier companies by Maruti. Wheels India etc. Brakes India. to a large part supported by Maruti’s volumes. The company decided to work with some of the existing Indian vendors as well (e.27 29. © SupplierBusiness Ltd 2009 43 .1: Suppliers where MUL has a stake Suppliers Asahi India Glass Bharat Seats Limited Caparo Maruti Limited Climate System India Limited Denso India Limited Jay Bharat Maruti Krishna Maruti Limited Machino Plastics Limited Mark Exhaust Systems Nippon Thermostat (India) Sona Koyo Steering Systems SKH Metals Maruti-Magneti Marelli Maruti Futaba Maruti-Bellsonica Source: Maruti-Suzuki Status Associate Associate Associate Associate Associate Associate Associate Associate Joint-venture Associate Associate Associate Joint-venture Joint-venture Joint-venture Holding (%) 11. Table 5. The second important event during the period was the emergence of Maruti-Suzuki. the government’s mandatory policies ensured that Maruti had to achieve high indigenization levels within a short period of time. Most of these suppliers limited themselves to supplying Bajaj. Asahi India. This was the first time that the Indian industry was exposed to global standards of manufacturing and quality.35 44. The Indian automobile supplier industry was ill-equipped at that time to meet Suzuki’s demands of delivery and quality.37 10 7. While the first cars to roll out had a high Japanese content.) aiding them through arranging technology joint-ventures with Suzuki suppliers.The Indian Supplier Report promoted by family and associates of the OEM’s promoters.85 44 50 50 51 Maruti suppliers have over the years shown strong growth.g. Sona Steering.8 15. Machino Plastics. Maruti group suppliers like Sona Koyo and Asahi India have emerged as some of the biggest component manufacturers in the country.81 20 39 10. These were the important factors which prompted Maruti-Suzuki to form a dedicated vendor group of its own. 75 120.35 306.000 18.and the suppliers have benefited the most from the strong domestic numbers.894 3.008 3.278 3.00 612.00 728.76 114. This was the time when Indian suppliers like Bharat Forge started exploring international markets.46 216.20 67.430 6.3 1996-2005 – The emergence of ambition The Indian automotive industry has shown a steady growth since 1996-97 .249 3.96 15.The Indian Supplier Report 5.469 2.692 2.56 172.96 46.with double digit growth since 2001-02 .33 27.97 163.33 14.06 28. However the rate of growth between 1996-97 and 98-99 was slower as the domestic industry went through a minor depression.700 12.020 1.74 18. The trickle of exports started by suppliers like Sundram Fasteners and Bharat Forge became stronger with years as the Indian industry started tapping export volumes.02 255.470 5.730 8.000 -8 8 20 2 13 21 24 29 38 25 20 291 330 350 456 625 578 760 1.00 483.965 4.60 Exports 45 5 16 48 4 25 32 66 46 16 26 In US$ million Growth (%) In US$ million Growth (%) 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 Source: ACMA 3.873 3.00 5 8 26 5 25 18 20 29 38 25 20 10.32 129.40 383.000 15.92 144.68 98.2: Volumes of the Indian industry (1996-2008) Production Year INR billion Growth (%) Exports INR. Table 5. billion Growth (%) 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 Production Year 114.02 34.615 13 6 30 37 -8 31 34 66 46 16 26 © SupplierBusiness Ltd 2009 44 . India has an automobile industry in an advanced stage of development. Indian companies are likely to develop an expertise in telematics and design. Ford and Chrysler are apprehensive due to the economic crisis in US and the chances of one of the large automakers to file for Chapter 11 protection. 5.The Indian Supplier Report Factors that have driven the Indian suppliers’ export push: Lower manufacturing costs in India offer an advantage to international OEMs and tier I suppliers. In the future. Currently a number of industry players with exposure to GM. resulting in brief phases when suppliers were under pressure on margins front. On the other hand. In 2007. India by virtue of its strong IT industry. a falling dollar adversely affected the industry. Mumbai-Pune and Bangalore- © SupplierBusiness Ltd 2009 45 . the situation has now reversed as the US Dollar has strengthened in the second half of 2008. The escalation in oil prices in early 2008 also contributed its bit to the woes of the industry. The significant volumes of the industry ensure that the top fifty suppliers have the base to grow their export businesses. 5. the industry was hit by commodity hardening. Indian suppliers are ambitious and at the same time respect IPR laws so it is ‘safer’ to manufacture in India than other markets like China. Due to the cost advantage Indian companies have a stronger position in supplying semifinished and labour intensive components like ferrous castings and forgings. and vice-versa. In 2006-07. also has a strong position in areas like software development.4 Integration of the Indian industry with the globe The last three years have been a time when the Indian supplier industry has been most integrated with global happenings and as a resuilt has been directly affected by them. Indian suppliers have mostly been based in three clusters. heavy duty crankshafts and semi-finished components. especially suppliers who had a healthy mix of exports to the US automakers or who had negotiated for their supplier contracts in US dollars. However. The three clusters – around Delhi.5 Automotive clusters – their evolution and importance Mostly due to the presence of the major OEMs. traffic mismanagement. While the NCR region is at a disadvantage because of its large distance from ports. Tata Motors and Force Motors in commercial vehicles and Bajaj Auto ad Kinetic in two-wheelers. a high percentage of suppliers in the NCR cluster have Japanese origins. © SupplierBusiness Ltd 2009 46 .The Indian Supplier Report Chennai – are areas that have received high automotive investments in the past and where the prominent OE manufacturers are located. Bosch. Until the 90s. With most of the OE companies being Japanese manufacturers or their collaborations. Fiat. There is also a large concentration of German suppliers in the region. Infrastructure problems like bad roads. vehicle makers were slowed by delays in launches due to bottlenecks at India’s only facility based in near Pune in Ahmednagar. Government has been proactive with plans to establish vehicle test facilities in each of these automotive clusters to quicken homologation procedure. Earlier. Maruti’s new investment plans have increased the investment in the region as existent as well as new suppliers have announced plans to expand and enter the region. Mumbai-Pune. Honda SIEL Motors. Mahindra. the supplier focus has widened. Pune catered mainly to the commercial vehicles sector but with Tata’s foray into volume passenger cars and components. equity or technical inputs. based near Delhi also draws from the suppliers cluster in the region. slow train network and communication issues were the drivers behind the formation of automotive clusters. To support these OEMs. Krishna Maruti. The cluster around the National Capital Region (NCR) of Delhi originated with Maruti establishing its base in Gurgaon in early 80s and the Suzuki owned company subsequently was instrumental in establishing a supplier base for its cars. DaimlerChrysler in passenger cars. Sona Koyo and JBM. Delhi-NCR (National Capital Region) and Bangalore-Chennai are the largest recipients of automotive investments. General Motors India. There is an ongoing expansion in these regions as the existing OEMs have increased production capacities and attracted new suppliers as their product mix and technology requirements widen. Lear and a whole lot of smaller component manufacturers in the region. Maruti was followed quite late by Daewoo (now defunct) and Honda in passenger cars and Hero Honda and Honda in the two-wheeler arena. Mumbai-Pune is the oldest and largest cluster with the presence of large OEMs such as Tata Motors. there are a large number of suppliers including Tata AutoComp. The leading suppliers in this area are mostly Maruti affiliates like Asahi Glass. the government has responded well by setting up an Inland Container Depot (ICD) at Tughlakhabad to facilitate exports. Bharat Forge. followed by similar moves by Mahindra. Toyota has established a supplier park in the Bidadi region near Bangalore. Delphi. Furthermore. Visteon. Table 5. The company already has made plans to invest in the states of West Bengal and Uttaranchal. Bangalore is also the Indian headquarters of India’s largest automotive supplier Mico Bosch. Hyundai and Toyota setting up manufacturing facilities there and a resultant inflow of suppliers into the area.The Indian Supplier Report The auto component cluster in the Bangalore-Chennai sector was primarily driven by Ashok Leyland in the commercial vehicles space and a small Hindustan Motors facility in the passenger car sector. including its own transmission parts unit under Toyota Kirloskar Auto Parts. the entry of new OEMs like VW and BMW may also initiate the entry of new entrants in the supplier arena. Tata Motors has announced setting up of manufacturing facilities in all the three states. and Bosch are some of the important suppliers in the cluster. At the same time. What may be a strong driver for emergence of new automotive clusters in India would be Tata Motors reported plans of setting up a number of mid-size manufacturing units across the country to produce the INR 100. It is very likely that a number of suppliers will follow Tata Motors into the areas that the company is planning to set up new plants. The proximity to Chennai port facilitates exports for the suppliers in the cluster.000 car. Such a tax break also helps I making the product attractive and may result in significant volume gains for the manufacturer. investment in the automotive sector has increased in new geographical areas as well. In the last decade. the Indian auto component industry is set to broaden its base beyond the three traditional clusters. General Motors plant near Baroda (Gujarat) and International Cars and Motors in the Una district (Himachal Pradesh) have the potential to attract a number of suppliers to that region. For example.4: Automotive clusters in India Location Estimated number of major supplier manufacturing units Delhi & NCR MumbaiPune ChennaiBangalore Karnataka Gujarat Uttaranchal WB Punjab Others 256 188 118 54 25 3* 18* 14* 148 * High probability of these locations developing as clusters in the future. International Cars and Motors’ rationale for choosing Una district in Himachal Pradesh was because of the excise and income-tax ten-year tax breaks offered by the state government. with tax concessions being offered by states like Himachal Pradesh and Uttaranchal through the development of Special Economic zones. the early 90s saw manufacturers like Ford. However. © SupplierBusiness Ltd 2009 47 . 10 September 2008) at its Pithampur facility near Indore.000 ft2 manufacturing facility will initially house 75 employees.General Motors announced plans to set up an engine and transmission plant in Maharashtra (India). 20 August 2008 . Expansions are planned for the company's Michigan.68m. The company plans to manufacture steel-belted passenger car tires. 15 September 2008 . The facility supplements Modine’s engineering and design centre which was started in 2007. 21 October 2008 .5bn (US$106.Jai Suspension Systems. The company plans to produce interior components and systems including instrument panels. Karnataka and Satara. The new engine plant will be located in Talegaon where GM’s second vehicle plant is expected to start operations from September 2008. 14 August 2008 . which will manufacture products in the areas of controls and security. The facility will produce brake and friction components for light vehicles. 11 November 2008). The plant will initially manufacture 90.Robert Bosch GmbH announced an investment of INR4. The total investment in the plant amounts to INR250m (US$5.JBM Auto Ltd announced plans to invest INR2. Construction work is expected to be completed at the 150.000 people directly or indirectly to initially produce 250. 29 September 2008) to set up 12 new facilities across the country to manufacture various components.000 units of skin panels. CAD (computer-aided design) development.4: Company Modine Delphi Jai Suspension Systems Tata Honda Anand Automotive Stadco IAC Bridgestone American Axle & Manufacturing Minda Industries Limited (MIL) General Motors Dunlop JBM Auto Ltd Federal-Mogul Robert Bosch © SupplierBusiness Ltd 2009 48 . formed in October 2006. safety and entertainment and communications.4m. The plant to be located in the north-eastern state of Assam will start production in 18 months.000 ft2 facility by the third quarter of next year. and production.Anand Automotive Systems announced capacity expansion plans for the next three years in India. and will supply parts to Toyota and other OEMs.3m.5bn (US$52. 11 November 2008 . on ten acres of land. apart from friction products for commercial vehicles and railways. 08 October 2008 .Stadco inaugurated an engineering centre in Chennai. 5 August 2008 . 4 August 2008) for its Nashik (India) facility.45bn (US$57. The investment details or the capacity of the new plant have not been disclosed. 30 September 2008 .Federal-Mogul announced establishment of a friction products plant in Chennai. Uttarakhand (India). 10 September 2008 .000 units every year. to be completed by 2011. 01 September 2008 . India. India. The company has already acquired land for the plant.American Axle & Manufacturing announced plans to spend US$73m on its US operations in 2008 and US$30. A new press facility and an advanced powertrain unit for engine components were also unveiled. 02 September 2008 .000-300.The Indian Supplier Report 5.5m. Modine’s 80. The company initiated work on the facility in December 2006 with an investment of US$14m spanning three years. Madhya Pradesh (India). The vendor park will house 55 suppliers. 28 August 2008 . The company planned two new plants each for Michigan and for India and one each for Thailand. 29 September 2008 .74bn (US$150. 19 August 2008) in a greenfield tire manufacturing facility. started production of suspension springs at its new INR30m (US$601. is expected to increase plant capacity by 3 million tires per year to 8 million units per year. The facility currently produces 500. Table 5.Modine Manufacturing started a new manufacturing facility in India. 8 August 2008 .000 m2. Nearly 500 new jobs will be created at the Chennai facility. The company will invest INR2bn (US$42. Poland and Colombia. The facility involves capital investment amounting to US$25m. a subsidiary of Jamna Auto Industries.6m. The facility will have a production capacity of 50 tonnes per day for trucks and off-the-road tires.3m in 2009 in order to support new products and contracts. The company plans to double the production of common rail injectors to 1.Dunlop anounced to invest close to INR4. The new facility will be built at Oragadam. The facility will initially span 6.Tata group announced plans to relocate its Nano project to Gujarat.Bridgestone Corporation announced plans to invest INR6.4m.Delphi Corporation planned to establish a new facility in India to produce automotive electronic components. The new expansion plan. The company's first centre in Southeast Asia will cater to design and engineering activities for both automotive and commercial vehicles and focus on styling.100 acres of land.3 million units per year with this investment spanning over the next two years.6 Aggressive expansion by Indian suppliers New plant openings announced by Indian suppliers Comments 14 November 2008 . Mexico. The new plant will export certain engine components and body pressings to Asian countries. The new plant along with an integrated vendor park will be built on 1.380) facility at Pant Nagar. The INR 20bn (US$414m) low-cost car project will be commissioned in Sanand in Gujarat.IAC decided to set up a new manufacturing facility in Chakan near Pune (Maharashtra). The plant which will assemble leaf and parabolic springs has a capacity of 24000 MTPA. Bangalore (India) for the manufacture of blow moulding parts. Mexico. These will supply body panels and engine components to HSCI’s plant in Greater Noida (India). 1 September 2008).000 cars per annum. 16 September 2008 . expected to start operations by September 2009. The company has a technical collaboration with the Indonesain company Kyoraku at this facility. 14 August 2008) in a plant in Pune. the company will invest in two new facilities in Hubli.Minda Industries opened a new factory at Bidadi. The Nano plant is expected to employ 10.Honda Siel Cars India (HSCI) inaugurated its second plant in Rajasthan (India). CAE (computer-aided engineering) analysis. Brazil and China plants. The plant started production in October 2008. exclusively for the Tata Motors and Fiat joint-venture.9m. In addition.5bn (US$103. Maharashtra. cockpits and door assemblies for domestic market passenger cars and medium/heavy duty trucks. near Chennai with an investment of INR2. The zero-emissions plant has been set up with an investment of €5m.34m).000 people producing auto components and foundry products. 4 March 2008 – Global asset management firm AIG Investments acquired a 14.Umicore announced plans to set up an automotive catalyst plant in India. The plant. 15 July 2008 . 13 February 2008 – Lumax Industries announced plans to invest INR2bn (US$50. Pantnagar and Haridwar.Pininfarina SpA announced its plan to set up a research.9m) for the next two years. Pininfarina will hold the majority stake and management control.000m2. 4 July 2008 . 15 January 2008 . The investment was made through the subscription of compulsory convertible preferential shares priced at a total of INR 250m (US$3. The company plans to produce powertrain components including engine and gear boxes at the plant with an annual production capacity of 200. The investment will be used for the development of vehicle emission treatment products. 7 May 2008 . The facility is spread over 60. 15 July 2008). The company has a large focus on the Automotive segment which is the second largest contributor to the total sales of BASF. located at Ranjangaon near Pune.7m) in a phased manner through Mei Ta Industrial Company. 7 May 2008 .5 million light sets per annum from the current six million.ElringKlinger Group opened its first manufacturing facility in India. 17 January 2008 . 09 May 2008 .Delphi has got an approval for investing INR 300m (US$ 69.5bn (US$88. The company produces gaskets for powertrain applications. The Italy-based designing and contract manufacturing company will collaborate with Tata Motors which intends to have a minority stake in the Indian venture.5% stake in India-based Kinetic Engineering (KEL) for around INR256m (US$6.5 million cars annually. 3 February 2007) expansion and modernisation plan. will be set up at a cost of US$25m. Bosch intends to invest INR23bn (US$536.4m. 12 February 2008) over the next 15 months to modernise its existing plants and to set up three greenfield manufacturing facilities. Financial details of the investment were not disclosed.7m-US$278m) for establishing a manufacturing plant at its Talegaon facility near Pune (India).Fiat planned to open a group purchasing office in India to source parts. Maharashtra (India) in November 2007. 4 February 2008 – Headlamp manufacturer Autolite India Ltd framed a INR1bn (US$25. Scheduled to commence production in 2010. The company planned to open new factories at three different locations in India – Singur.3m. the company is planning to expand its commercial and technical application services in India. This move is part of the company’s strategy to cut costs by buying more components from low-cost areas to ensure higher competitiveness and better margins. manufacturing capacity is expected to go up to 8. 17 May 2008 . 15 April 2008 .Gear World opened a new thermal treatment plant for gear manufacturing in Ranjangaon near Pune. The 230 acre facility will employ 5.Hyundai Motor’s second engine plant in India started operations. 7 July 2008 . 17 July 2008) in India between 2006 and 2010. 16 July 2008 .Ceat Ltd set up its proposed INR5-6bn greenfield radial facility in Gujarat. The company has received orders of over INR3. 4 March 2008) per share.3m. immobilisers and body computers.Continental inaugurated a new electronic manufacturing plant and a research & development centre in Bangalore (India).BASF planned to build a new engineering plastics plant near Mumbai (India) for automotive components. The plant will produce seating mechanisms and cater mainly to the requirements of Maruti Suzuki India Limited. 23 June 2008 . Financial details were not disclosed.20bn (US$51. The plan is aimed at expanding the production capacity to meet increased export orders. Construction began in April 2008 and is expected to be completed within 18 months.600m2. The group plans to invest INR6bn (US$139. Financial details of the investment were not disclosed. The plant will manufacture components for 1. The supplier has not provided any details regarding the capacity of the ABS unit. The total investment in the 15. The Purchasing Office in India sources components for cars and commercial vehicles. makes engines for compact cars and supplies to its small car line-up.Timken announced plans for a new bearing plant at Mahindra World City Special Economic Zone (SEZ) in a bid to tap the growing Indian industries.Robert Bosch announced plans to start production of anti-lock braking systems (ABS) in India by the first quarter of 2009. Under a long-term plan. The company filed an application for the allotment of approximately 100 acres at either Halol near Baroda or Bharuch for setting up the proposed radial tire facility. The facility will produce electronic components and serve as the new headquarters of Continental India.Faurecia announced plans to set up a new manufacturing plant near New Delhi (India). Timken India Manufacturing Private Ltd.Ashok Leyland announced its strategic investment in Albonair GmbH. Hyundai Continental Umicore General Motors Delphi Mei Ta Ashok Leyland Ceat Fiat BASF Gear World Pininfarina Timken ElringKlinger AIG Lumax Autolite India Apollo Tyres Faurecia © SupplierBusiness Ltd 2009 49 . 14 July 2008 .Apollo Tyres planned an investment of €200m to set up a manufacturing facility in Gyongyos (Hungary) to make passenger car radial tires for the European and North American Markets. for vehicles such as the i10 and i30.Taiwan-based Mei Ta group planned to establish an auto component manufacturing unit in Nellore. with a built-up area of 5. Post the investment. located in Chennai.Delphi planned to expand its operations in India by opening up a new unit in Chennai (India). design and engineering centre in Pune. This unit will produce electronic and safety management system (EMS) products. The company plans to more than double its Albonair's team to 60 in one year.000m2 plant totalled INR 2.GM announced an investment in the range of INR10bn-INR12bn (US$231. 25 April 2008 . as well as powertrains. The automaker spent US$421m on the new plant. 17 June 2008 . primarily for the low-emission gasoline and diesel engines.3m). The company also set up a truck radial facility near Patalganga. Autolite has already initiated the construction of manufacturing plant at Rudrapur in Uttarakhand (India). Andhra Pradesh (India). Initially this unit will produce instrument clusters and then move up with a range of products like air bags.000 units.4m.86m.The Indian Supplier Report Bosch 17 July 2008 . Employee numbers will increase to 50 by 2008 end. Maharashtra (India) by the end of 2008. seat belts. 17 April 2008 . The subsidiary’s business activities include production and sales of automotive electronics such as body control modules and keyless entry devices.Continental AG received FIPB approval for investing INR550m (US$13. 14 December 2007) for the expansion. The facility inaugurated in December 2007 at Tata’s interiors and plastic technical centre is equipped with a testing system from Microsys Technologies based in Canada. invested INR420m (US$10. 11 August 2007) to set up a facility in Coimbatore (India). 18 December 2007 . Continental Mann+Hummel VM Motori Caparo Yachiyo India Pistons Tata Steel Apollo Tyres Continental AG Mitsuba Sanden Corporation Wheels India Magna Jamna Auto Setco Automotive Bosch Omron TACO Sona Koyo Steering Systems Rane Group © SupplierBusiness Ltd 2009 50 . The subsidiary. for which the firm tied up with ICICI Bank in India.13bn (US$53. The company focuses on both exports and domestic markets. 07 January 2008 . training. to manufacture pistons for the new Euro IV compliant engine applications. 28 November 2007 .65m).5bn (€44.The Indian Supplier Report BorgWarner 14 January 2008 .4m. The company planned to invest INR750m (US$18. design services and administrative space for over 100 employees with room for future expansion.5bn (US$13. manufactures engine valves.000 units per annum. located in a Special Economic Zone (SEZ) at Saravanampatty. door and seating systems and metal products. 14 January 2008 . The first plant operational by the end of 2007. The new facility will produce automotive electronics and cater to the low-cost car segment in emerging markets such as India and other Asian countries.Omron Corporation setup a new subsidiary in Manesar. engineering and aerospace components park in Nellore.34m).25 million of its shares to Kalamati Investment Company. 28 December 2007 . It will include manufacturing. The new facility is expected to begin manufacturing 7.Tata AutoComp (TACO) Systems set up a new passenger airbag test facility. 29 October 2007 .9m. anounced to set up two manufacturing facilities in India by late 2008 for stampings. Investment figures were not disclosed. planned to invest INR2.Mitsuba Corporation started a new production facility in India for motors and generators. The company is likely to set up facility for manufacturing both automotive and non-automotive engines.Setco Automotive Ltd. 19 October 2007 . Continental Rico Hydraulic Brakes India Pvt. 11 September 2007 . Financial details were not disclosed.Yachiyo Industry Corporation set up an automotive components production subsidiary in Rajasthan (India).Sona Koyo Steering Systems Limited set up an aluminum die. Production at the new facility is scheduled to start in 2009. Tamil Nadu (India). 23 July 2007 . Bosch’s facility. 7 August 2007 . planned to set up a manufacturing plant in India.Caparo Group planned to invest INR35bn (US$890.700m2. The investment was also used to establish a license and technical assistance arrangement between Continental Teves AG and Co OHG.09m) in setting up a facility in India to manufacture compressors for automotive air conditioners.Italian engine maker.BorgWarner Thermal Systems started construction of a new facility near Chennai. The new facility is situated near its existing facility in New Delhi. Financial details of the investment were not disclosed. 01 November 2007 .Sanden Corporation invested ¥1. which primarily took place at the Limda facility near Vadodara (India). 14 August 2007 . 28 November 2007) in setting up the new facility. VM Motori.9m) for the greenfield unit scheduled to become operational by October 2008.Jamna Auto purchased one of Tata Motors’ closed units at Jamshedpur to manufacture leaf springs for commercial vehicles and sports utility vehicles. It will increase the company’s production capacity in India to one million units per annum.3m) in setting up an automotive.The company established a new manufacturing facility in Uttarakhand (India) to undertake assembly of clutch parts and a new press shop at its existing facility near Vadodara.. Ltd. The company made an initial investment of INR300m (US$7. with an investment of US$25m. bringing it to ten millions in 2007 along with a capex figure of INR1000m (US$25.3m. Andhra Pradesh (India). The facility produces around 450. 30 November 2007) as foreign equity in a proposed joint-venture company. with a paid-in capital of INR150m ($3.5bn (US$13. The company invested INR1. 14 December 2007 . 20 June 2007) to scale up current production facilities and set up two new plants. 10 August 2007 .7m.Mann+Hummel planned to set up its second manufacturing facility in India in the next two years along with two or three warehouses and assembly units.Bosch invested INR2.3m.India Pistons formed a 50:50 joint-venture with Mahle in November 2007. 11September 2007) to increase its manufacturing capacity of clutch and clutch parts. in India.9m) in Steel Strips Wheels Limited (SSWL) in order to buy 10% stake in the company. 31 July 2007). 07 November 2007 . which became operational in April 2008. The second manufactures disc pads for Japanese and Korean carmakers. 18 December 2007 .000 acre land from state government for the components park.Wheels India Limited (WIL) announced augmentation of its production capacity by two million units. (OAI) is the first production investment by Omron in the growing Indian automotive market. The company invested ¥1.Continental planned to set up a new manufacturing unit and a research and development (R&D) centre in Bangalore (India). Ltd. Coimbatore focuses on designing technologies such as electronic control unit (ECU) for diesel and petrol engines. The company acquired a 2.58m) in the next two to three years. Chandigarh (India) based SSWL issued about 1.000 units of large wheels for mining trucks. 14 January 2008 . The Indian supplier plans to invest nearly INR2bn (US$50. Sona Koyo received clearance from the board to receive external commercial borrowings worth US$50m. The company is scheduled to manufacture AC generators and motors used in power window systems of the car at the facility spanning 36.83m.5bn (US$61. 30 November 2007 . an investment arm of Tata Steel. Gujarat (India).Magna International Inc. Haryana (India).Omron Automotive Components India Pvt.000 wheels in the next three years. 20 June 2007 – Rane Group invested INR2.Apollo Tyres announced its plans to expand the production capacity of its passenger car radial (PCR) tires. with the provision to raise the capacity to 18.31m) initially in this project.08bn (US$27. Motori planned to invest about INR880m (US$22.Kalimati Investment Company.casting and forging facility in India to supply components to the European markets. The financial details of the transaction were not disclosed. 14 January 2008 . a 100% subsidiary of Continental AG and the new JV.8m. Indian suppliers are unlikely to consolidate and existence of small and medium sized supplier entities is likely to continue. 17 January 2007 – Pierburg planned to set up a manufacturing plant in India.Tata AutoComp GY Batteries Pvt Ltd. next to the existing plant. A fully owned subsidiary.7 Consolidation in the Indian supplier industry: The Indian supplier industry has been going through a strong growth phase and it is too early for a consolidation to set in. but also manufactures exhaust gas recirculating valves (EGR).93m) over the next one year to expand its manufacturing capacity. Tata group’s stakes increased to 42. 23 February 2007 .29%. (MICO) from 60.The plant manufactures engine cooling modules. Modine Thermal Systems Private Ltd.000 engines annually.Tamil Nadu. 05 February 2007 . 14 May 2007 . which became operational by 2008. However.The Indian Supplier Report Tata Motors 7 June 2007 . 19 February 2007 .GS Yuasa International. Modine Manufacturing Company Behr India Pierburg 5.Kalyani Group completed capacity expansion of its commercial vehicle’s steel wheel plant located in Chakan near Pune.Bosch increased its stakes in its subsidiary.Behr India.JK Tire will invest INR6bn (US$147. 01 June 2007 – Sona invested INR200m (US$4. The move boosted Bosch’s presence in India by increasing its investment in technology. 04 May 2007 . Maharashtra (India). The plant is an assembling unit. Besides Tata Motors. The new facility became operational in early 2008 and has an annual capacity of 600. air-conditioning system for buses. 09 February 2007 .79%. The plant makes sideshafts. capital and other resources in the region.4m) in the next twelve months to increase the capacity of Off the Road (OTR) tires segment by around 50%. Post the right issue. The company will start production at the facility from end of 2009.Modine Manufacturing Company set up a production base in Sipcot Phase II industrial estate at Sriperumbudur. through a right issue. The company makes seat belts in the new facility.Tata International holds 21. another Tata group company.2bn (US$29. opened a new plant at Chakan.Hitachi set up an auto parts manufacturing plant in India to supply the OEM in the local markets. The company made an offer to buy 6. and components for large engines. 30 April 2007 .GKN Driveline planned to invest INR1.4 million MICO shares at a price of INR4000 (€97) per share. Important amongst them have © SupplierBusiness Ltd 2009 51 . The company also announced its plan to set up a new facility to manufacture steel wheels for passenger cars. a number of suppliers have made acquisitions over the last three years. water and vacuum pumps for diesel engines.000 wheels per year. near Pune. Ltd. The production facility makes three kinds of heat transfer devices — radiator cap and charge air cooler for engines. India. The company will invest INR1..Piaggio Vehicles set up a diesel engine manufacturing facility in Pune (India) to produce 200.95m) to establish a new facility in Oragadam region near Chennai (India).60bn (US$38.15bn (US$27.Tata Motors increased its stakes in Automobile Corporation of Goa. was set up to facilitate the new Indian foray. Behr Germany and Anand Automotive invested US$12 million in 2006 and another US$5m in 2007.000 vehicle sets. a joint-venture between Tata AutoComp Systems (TACO) of India and Japanese automotive battery manufacturers. In the absence of any pressure on sales.1m) in the next three years to expand its four existing facilities. from 10% to 21. The company plans to invest €65m in the next two to three years towards establishing the facility. This move increased its annual capacity from 9m to 20m units in 2007. a 60:40 joint-venture between Behr Germany and Anand Automotive Systems.89m) in a tool and die facility in Haryana (India) and a manufacturing facility near Pune (India).5% stake in the subsidiary. Lumax made a preferential issue of 1 million equity shares to Stanley at a price of INR540.5% to 80%. 2 May 2007 .Bridgestone planned to invest US$50m to US$100m to set up a greenfield plant in India. Forecasts for the automotive and components industry do not anticipate a depression for the near future.Donaldson Co.03 per share. The new unit is scheduled to make 15.2bn (US$53. A total investment of INR2.000 tires per day. 10 May 2007 . announced plans to invest INR1. Sona Okegawa Piaggio Vehicles Stanley Electric JK Tire GKN Bosch TACO Autocomp Takata Corporation Kalyani Lemmerz Bridgestone Hitachi Donaldson Co.Stanley Electric of Japan bought an additional 20% stake in the Lumax Industries Ltd.9m) was made to complete both these expansions. Maharashtra (India). 20 February 2007 . charge air coolers and condensers. 10 April 2007 – Takata Co. manufacturer of air and liquid filtration systems and parts announced its decision to expand its manufacturing facility in India. A number of them have just been realignment and consolidation of businesses. Automobile Corporation of Goa is one of the subsidiaries of Tata Motors and a major supplier. 01 June 2007 . 31 January 2007 . The plant's capacity increased to 800. heat exchangers including radiators. Motor Industries Co. oil. planned to set up a wholly-owned facility in which became operational in early 2008. 19 June 2008). a TVS group company. which is a part of its auto components business. with an annual production capacity of 400. Important amongst these was the acquisition of Ring Plus Aqua by the Raymond’s group and the Ruia Group’s acquisition of Dunlop India.UMW Corporation Sdn Bhd (UMWC). The facility will be used as a contract manufacturing centre. The financial details of the deal were not disclosed.KPIT Cummins acquired a substantial part of mechanical design services business of Harita TVS Technologies. Important amongst these was the acquisition of Upasana Engineering and Upasana Components by Sundram fasteners.Argentum Motors acquired Daewoo India. The sale agreement was valued at INR900m (US$22. Purolator acquired the 50% stake of its joint venture partner Mahle in their filter manufacturing operations – Mahle Filter Systems India. MICOBosch increased its stake in Kalyani Brakes from 40% to 80% and renamed the company as Bosch Chassis Systems India (BCSI) as joint-venture partner Kalyani Group made a strategic exit from non-core activities. A number of new entrants have entered the supplier arena through the acquisition of existing suppliers.23m. 24 April 2008 . suppliers acquired controlling stakes in their existing joint-ventures.49m). 12 December 2007 . Amalgamations Repco’s acquisition of India Pistons Repco and Ennore Foundries acquiring Ductron Castings) within large groups. UMWC signed two separate share sale agreements with the vendor Datuk Muthukumar Ayarpadde for acquiring 51% stake in MK Autocomponents Ltd (MKAL) and 50% in MK Automotive Industries Ltd (MKD).Exide Industries acquired a 51% stake in the Leadage Alloys India for INR350m (US$8. Rane Brake Linings acquiring Soubhagya Diecast and LG Balakrishnan’s acquisition of MGM Industries. 19 June 2008 . 10 July 2008 . Maruti associate supplier Krishna Maruti acquired Mark Auto Industries.01m. Table 5. involving assets worth INR7. Leadage Alloys Kirloskar Oil (Valves division) MKAL. Swathe Gears and Heat Treaters.5: Acquirer FederalMogul KPIT Cummins Exide Industries Eaton Mergers & Acquisitions in the Indian supplier industry Acquired Business Perfect Circle India Harita TVS Sector Automotive Automotive Comments 13 August 2008 .Eaton Industrial Systems signed an agreement with Kirloskar Oil to acquire its valves division. Many large suppliers have acquired very small companies to add on an expertise to their existing operations. MKD Automotive Automotive UMW Corporation Automotive Argentum Motors Daewoo India Engine & transmission © SupplierBusiness Ltd 2009 52 .16m. a subsidiary of UMW Holdings Bhd.000 units.65bn (US$169.The Indian Supplier Report been Siemens’ merger of Siemens VDO into itself. In a few instances.71m (US$23. BCSI will act as Bosch’s vehicle for the passenger car brakes and ABS market. another associate supplier of Maruti. Sandhar Locks meanwhile acquired competitor Adeep Locks increasing its market share in automotive locks while J K Tyres acquired Vikrant Tyres to increase its presence in the commercial vehicle segment. 1 May 2008). Similarly. 13 August 2008). acquired two Indian automotive components manufacturers for a sum of RM74. A number of suppliers made strategic acquisitions to increase their foot-print into other areas. 1 May 2008 .8m. It already has an engine and transmission production plant in place. 12 December 2007).Federal-Mogul acquired a 51% stake in Perfect Circle India from the Anand Group in a transaction worth INR170m (US$4. Cooper-Standard Automotive acquired a 74% stake in Metzeler Automotive Profiles India Pte. MAN and DaimlerChrysler.Key Safety Systems (KSS) acquired 50% ownership in Indiabased Abhishek Auto Industries Ltd (AAIL). While the pioneers in the exports push were suppliers like Bharat Forge and Sundram Fasteners. a number of suppliers are now in a position to tap the export markets.8 International acquisitions by Indian suppliers Supported by the strong domestic market. Bharat Forge’s acquisition strategy has focused on having production facilities in all its major markets. 31 January 2007 . Indian manufacturers prefer to acquire companies internationally which are not doing well financially. Key Safety Systems PPG Industries Clutch Auto Abhishek Auto Industries ICI India Automotive Automotive GKF Castings 5. The acquisition was valued at nearly US$12m. Toyoda Gosei holds the remaining stake in the company. Ltd. Indian suppliers find a number of advantages in taking over companies abroad. They can later on be turned around by good management. © SupplierBusiness Ltd 2009 53 . 21 February 2007 . The financial details were not disclosed. Buying an international supplier may also be a strategic move in cases when the acquisition brings expertise and significant markets hare for some specific components. (MAP India) from Automotive Sealing Systems SA. A number of suppliers are taking the acquisition route in order to expand internationally. Off-shore manufacturing facilities can often be used for high-end manufacturing while low end components can be supplied from the Indian centre.PPG Industries and ICI India Ltd entered into an agreement to acquire ICI’s premium automotive refinish business. AAIL was renamed KSS-Abhishek Safety Systems Pvt. 25 October 2007 . Advantages of acquiring an international supplier: International suppliers give access to global clients which are difficult to bag otherwise.The Indian Supplier Report CooperStandard MAP India Sealing 18 January 2008 . The acquisition will make Cooper-Standard the biggest weather-sealing manufacturer in India. Bharat Forge benefited from the acquisitions of CDP Aluminiumtechnik and CDP Forge by acquiring a client list including BMW. An international acquisition gives an off-shore manufacturing facility to the Indian manufacturer. Loss making operations often come at a lower price than they would otherwise cost.Clutch Auto acquired all assets of GKF (Gurukripa Founders and Engineers). Ltd. The company manufactures high quality CI castings required for auto components. For example Amtek’s acquisition of Zelter gives the Indian company a strong presence in turbocharger housings. the trickle is fast gaining in strength and volumes. The Indian Supplier Report Table 5.6: Supplier JBM Auto Joint-ventures in the Indian supplier industry JV Partner Ogihara Location India Comments 12 November 2008 - JBM Auto announced a joint-venture with Ogihara (Thailand) Company Ltd. to produce auto components in India. The JV manufacturing facility is likely to come up in Bangalore (India). JBM Auto will hold majority stake of 51% in the JV while 49% will be controlled by Ogihara. The JV will produce stampings and sub-assembly parts for Toyota Kirloskar Motor Pvt Ltd. Commercial operations are likely to start by 2010. 03 October 2008 - Valeo and India-based Anand Group started a joint venture in India, for the production of lighting systems. The venture will be located at Chennai (India). The French supplier will hold the majority stake in the venture, Valeo Lighting Systems India Private Limited. Both the companies will produce lighting systems including projectors, lights and rear fog lamps for the Indian automotive market. 17 September 2008 - Anand Group decided to form two joint-ventures with Japanese and European companies in India. The company intends collaboration for the production of safety products such as airbags, seat belts, steering wheels and lighting systems. The lighting systems JV will have a facility in Chennai (India) while the safety systems products will be manufactured at two locations: Chennai and an undecided facility in northern India. 16 September 2008 - Magneti Marelli announced to establish its fifth jointventure in India with Unitech Machines Limited. The Italian company will have 51% stake in the new company while 49% of the stake will be owned by Unitech. The joint-venture is expected to be operational by the end of the first quarter of 2009. Unitech Machines would invest INR400m (US$8.7m, 16 September 2008) to set up a facility in Manesar (India) for the new venture. 09 September 2008 - Ashok Leyland and Nissan signed a memorandum of understanding with the Tamil Nadu state government to set up facilities for the manufacture of powertrain modules and light commercial vehicles. The integrated plant, to be set up on a 380-acre land in Pillaipakkam will start production in 2010/11. The plant will be set up with an investment of US$538m and have an initial capacity of 100,000 truck units, of which 20% will be exported. 22 August 2008 - Harita Seating Systems announced establishment of a jointventure (JV) with Germany based auto supplier, FS Fehrer Automotive GmbH. The JV will have a dedicated facility at Hosur, Tamil Nadu (India).The company plans to produce polyurethane moulded foam pads for seats and plastic components and two-wheeler seats through the JV. 14 August 2008 - India-based Amtek Auto Ltd formed a joint-venture with Michigan (US)-based FormTech Industries LLC to establish an automotive forgings manufacturing unit. The joint facility will manufacture Hatehur Hot Forgings for automotive applications in India and Europe. The production facility is expected to become fully operational in nearly 12 months to 18 months. 9 July 2008 - Best Group formed a 50:50 joint-venture (JV) with Germany's Koki Technik Transmissions GmbH (KTT) to manufacture transmission shifting components. The products will be manufactured at Best Group's production unit at Gurgaon, Haryana (India). Under the agreement, both parties will invest INR400m (US$9.25m, 8 July 2008). 27 June 2008 - The NK Minda Group of India announced its second jointventure (JV) with Japan's Tokai Rika. The new company – Tokai Rika Minda India Pvt Ltd (TRMIPL) – will manufacture automotive seat belts, locks and immobilisers. Tokai Rika will own a 70% stake while the balance 30% will be held by the Minda Group. 17 June 2008 - Magneti Marelli and India-based Endurance Technologies started a joint-venture to produce shock absorbers for passenger and commercial vehicles. Under the agreement, Magneti Marelli will own 50% minus one share, while Endurance Technologies’ share will be 50% plus one share in the joint venture. Both the companies have not disclosed details about the new investments for the venture. The production, expected to start by March 2009, will commence from Endurance Technologies’ existing facility in Chakan, Maharashtra (India). At the same time, the plans include setting up a facility near Bangkok (Thailand), where the Indian supplier is already present. Valeo Anand Group India Anand Group N/A India Magneti Marelli Unitech Machines Limited India Ashok Leyland Nissan India Harita Seating Systems FS Fehrer Automotive GmbH India Amtek Auto Ltd FormTech Industries LLC NA Best Group Koki Technik Transmissions India Minda Group Tokai Rika India Magneti Marelli Endurance Technologies India © SupplierBusiness Ltd 2009 54 The Indian Supplier Report Ghaziabad Precision Products Kasuya Seiko India 28 March 2008 - Ghaziabad Precision Products Pvt. Limited (GPP) and Kasuya Seiko Company Limited (KSC) formed a joint-venture (JV) in Ghaziabad (India). Named as Kasuya GPP Auto Products Pvt. Ltd., the JV will supply valve-train parts for light, medium and heavy duty vehicles in national and international markets. 18 March 2008 - JBM Auto entered into a joint-venture agreement with Magnetto Automotive SPA for manufacturing body structures for original equipment manufacturers (OEMs). The joint-venture has been incorporated as a separate company: JBM Magnetto Automotive Pvt Ltd. Manufacturing facilities will be located in Chakan, Maharashtra (India). The joint-venture will manufacture welded parts and sub systems for OEMs such as TATA, Fiat TATA and Volkswagen group. 26 February 2008 - JMT Auto signed a new Memorandum of Understanding (MOU) with Timken India for expansion of their Dharwad, Karnataka project. The agreement was initially inked for expansion of the existing project at Dharwas, Karnataka which was specially established for Timken India. The MOU also covers investment for backward integration. 21 February 2008 – Magneti Marelli signed two 50:50 joint-venture agreements with Krishna group companies, SKH Metal and SKH Sheet Metal Components to manufacture automotive exhaust systems. Magneti Marelli’s JV with SKH Metal will establish a manufacturing unit at the Maruti Suzuki Industrial Suppliers Park in Manesar (India), which will design, produce and assemble exhaust system components for Maruti Suzuki India Limited (MSIL) and Suzuki Motors. The JV with SKH Sheet Metal will design and produce exhaust systems for Fiat, Tata, and other automotive customers. The plant will be located in the auto cluster at Pune. 18 February 2008 – Bosch and Igarashi Motors inked a 51:49 joint-venture to manufacture automotive components in Chennai (India). Scheduled to begin operations in the second half of 2008, the joint-venture will produce DC motors and systems for wiper, HVAC (heating ventilating and airconditioning), engine cooling and window lift applications. The JV plans to employ around 100 people by end of 2008. The investment amount, however, has not been revealed. 13 December 2007 - Hero Motors Ltd formed a joint-venture with Kiriu Corporation of Japan. The newly formed company, Munjal Kiriu Industries Pvt. Ltd (MKIPL), will manufacture brake discs, drums and knuckles for automotive original equipment manufacturers (OEMs) at Manesar, Haryana (India).The two companies will invest INR2.4bn (US$60.9m, 13 December 2007) in the plant. 03 December 2007 - India's Varroc group signed an agreement to form a joint-venture with the French supplier, Plastic Omnium Auto Exterior. The new JV, Plastic Omnium Varroc Pvt Ltd. set up a new manufacturing facility in Chakan, near Pune, Maharashtra (India). The new €20m facility to become operational by 2008 will manufacture bumpers, bumper modules, claddings, rocker panels, finishers, structural parts and painted body panels. Plastic Omnium will have 51% stake in the JV, the remainder will be with Varroc group. 30 November 2007 - Mahle Group signed a 50:50 joint-venture agreement with Indian Pistons Ltd. to manufacture pistons for the new Euro IV compliant engine applications. The JV focuses on production of pistons for gasoline and diesel engines and will operates as Mahle India Pistons Ltd. The manufacturing facilities are located at India Pistons’ facilities near Chennai (India). 22 November 2007 - TRW Automotive Holdings through its subsidiary Aftermarket Asia Pacific Private Limited formed a joint-venture with Sun Vacuum Formers Private Limited to manufacture steering wheel systems. The joint- venture operates an existing manufacturing facility near New Delhi (India) broke ground for a new manufacturing site in Pune in October 2007. 25 October 2007 - Abhishek Auto Industries Limited announced a jointventure with KSS (Key Safety Systems). KSS acquired a 50% stake in Abhishek Auto Industries Limited and post the JV, Abhishek Auto Industries Limited was renamed as KSS-Abhishek Safety Systems Pvt. Ltd. The jointventure also includes an investment of approximately US$20m over the next few years, expanding upon the existing world class design, development, testing and manufacturing facilities to add new Steering Wheel and Airbag capabilities. 19 October 2007 - Rico Auto Industries finalised a joint-venture with Magna Powertrain to manufacture oil and water pumps with Aluminium Housings for automotive engine applications for Indian and European markets. Both companies will hold 50% stake in the venture. The project is likely to start in early 2009 and the facility will be located in Gurgaon (India). JBM Auto Magnetto India JMT Auto Timken India India Krishna group Magneti Marelli India Bosch Igarashi Motors India Hero Motors Kiru Corporation India Varroc Plastic Omnium India Mahle India Pistons India TRW Sun Vacuum Formers Private Limited India Abhishek Auto Key Safety Systems India Rico Auto Magna India © SupplierBusiness Ltd 2009 55 The Indian Supplier Report Magna Amtek Auto India 11 October 2007 - Magna International will form a 50:50 joint-venture with Amtek Auto Ltd. in India to manufacture and supply powertrain systems both to the domestic and export markets. The JV will start powertrain systems supply in the first quarter of 2008. The JV will be one of the nine strategic business units (SBU) of the company, which will take a stronger foothold in India. 24 September 2007 - Sundaram Industries and Firestone Industrial Products formed a joint- venture to produce air springs. The venture is based in Madurai, Tamil Nadu (India). The JV will cater to air springs demand of the OEMs, Indian Railways and the aftermarket. 19 September 2007 - Maruti Suzuki India Ltd (MSIL) proposed a jointventure with Japan's Futaba Industrial Company to set up an exhaust parts manufacturing facility in India. MSIL holds a 51% stake in the joint-venture, while Futuba holds 49% stake in the new venture. The venture is built on a 100 acre supplier's park in Manesar, near Gurgaon. MSIL already has one of its car manufacturing facilities in that region. The JV began production in 2008. 29 August 2007 - JTEKT Corporation established a joint- venture with India based Sona group for manufacturing advanced electronic power steering. Both the partners made an initial investment of INR1.2bn (US$29.16m), holding 50% stakes each in the company. The production is likely to start by early 2009 in its new facility at Bawal (Haryana). 9 August 2007 - Motherson Sumi of India entered into a joint-venture to manufacture automotive air conditioners with Japanese Calsonic KanseiCalsonic Kansei Motherson Auto Products Ltd. Both the companies will invest a total amount of INR100m (US$2.46m) in the first phase. Calsonic has a 51% stake in the JV, and Motherson 49%. Production is scheduled to start in 2009 with revenues nearing INR500m (US$12.34m) by March 2010. 17 July 2007 - Ashok Leyland signed an agreement for a 50:50 joint- venture deal with Siemens VDO to design, develop and adapt infotronics products and services for the transportation sector in India and abroad. The JV manufactures electronic components and software such as instrument cluster applications, cockpit electronics and various control units for both commercial vehicles and passenger cars. 20 June 2007 – Continental and RICO Auto Industries Ltd invested in a jointventure to manufacture hydraulic brake systems. The facility in Gurgaon, Haryana (India) began in 2008 and annually produces 1 million brake actuation units, 2 million brake callipers, 1.5 million drum brakes and 500,000 load sensing proportioning valves. 1 June 2007 – Valeo and AK Minda formed a 50:50 joint-venture to manufacture and sell security system products such as locksets, steering column locks and engine immobilisers. The newly formed company – Valeo Minda Security Systems, located in Pune, Maharashtra – integrates the fourwheel drive security systems division of Minda. 1 May 2007 - Berger Paints entered into a joint-venture agreement with Japan-based Nippon Paint Group's subsidiary Nippon Bee Chemical (NBC). An initial investment of US$2.18m was pumped into the new company, to be built in Noida (India). NBC has a 51% stake in the company, while 49% is with Berger Paints. The JV manufactures plastic coatings for vehicle dashboards and bumpers. 30 March 2007 – Amtek Auto and VCST formed a 50:50 joint-venture to make high-technology components. A new facility with an initial capacity of 1.5 million components for exports was established under the JV. The facility is located close to Amtek's site in the western Indian city of Pune (Maharashtra). 7 March 2007 – NSK-ABC, the joint-venture between NSK and ABC Bearings is located in SIPCOT Industrial Park, Sriperumbudur (India) and manufactures bearings for transmission and magnetic clutches and HUB unit bearings. Initial investment was US$11.25m to which another US$4.5m will be added by 2010. NSK will contribute 75% of this investment and ABC the rest. 14 February 2007 - Panalfa Automotive and Magneton formed a joint-venture in which Panalfa holds 51% of the company and Magneton 49%. The new unit supplies starters with a reductor and alternators to the Indian and the Czech market. The unit also plans to supply Asian and African markets under the brand name Magneton. 15 January 2007 – The JV between auto parts manufacturer Fuji Kiko Co. and a local parts company Sona Group Inc. set up a plant in the outskirts of New Delhi, India. The plant makes steering mechanism components and supplies to Japanese affiliated firms including Maruti Udyog Ltd. The plant became operational in 2008 and Sona Group Inc. holds a majority stake of 51% in the JV. Firestone Sundaram Industries India Maruti Suzuki India Ltd Futaba Industrial India JTEKT Corporation Sona group India Motherson Sumi Calsonic Kansei India Ashok Leyland Siemens VDO India Continental RICO India Valeo Minda India Berger Paints Nippon Bee Chemical India Amtek Auto Ltd. VCST India NSK ABC Bearings India Magneton Panalfa Automotive India Fuji Kiko Co. Sona Group Inc. India © SupplierBusiness Ltd 2009 56 The Indian Supplier Report Chapter 6: Challenges facing Indian suppliers © SupplierBusiness Ltd 2009 57 The Indian Supplier Report 6.1 Uncertain Economic Scenario Indian suppliers have traditionally supported automotive production programs in Europe, until 2004-05 when a series of suppliers started making a beeline for North American shores. In the last five years, Indian suppliers have invested heavily in building a footprint in America. Chief amongst these are industry stalwarts - Bharat Forge, Rico and Krishna Maruti which was recently awarded a contract to supply to a Jeep program. Smaller players with niche products also took strategic steps in penetrating the North American market. Clutch Auto, a medium sized supplier of clutch assemblies successfully cornered a significant percentage of replacement market for Class 7 and Class 8 clutch assemblies from Eaton, by acquiring a distribution setup in USA. In contrast with Clutch Auto, Syncast an alloy wheel manufacturer positioned itself for supplying specialty cast alloy wheel rims to high end Ford and GM programs. Following the euphoria of the bigger players, most Indian suppliers had set a target for achieving 20-25% of their sales through exports. However, with the down-turn in demand from US based OEMs the companies are reconsidering their strategies. Smaller suppliers have been booking payment defaults and production cuts are the order of the day for export oriented units. The unavailability of credit, which is used to finance 82% of the sales in India has led to further aggravation. Both Maruti and Tata Motors, India’s largest car manufacturers have cut production and others too are following suit. 6.2 End user/ Consumer end credit squeeze The withdrawal of financers from two wheeler segment had started as early as December 2008 when delinquency rates hit 4%. Subsequently, financers revisited their risk portfolios and availability of finance for passenger cars and commercial vehicles was also tightened. After the emergence of the global financial crisis, finance for commercial vehicle purchases has been extremely scarce with interest rates quoting figures of 18%-21% per annum. This has severely weakened the demand for commercial vehicles which has been buoyant despite the meltdown due to a strong Government spending program for commercial vehicles. This has lead Tata Motors, India’s largest commercial vehicle manufacturer to cut production by 70%. 6.3 Project finance & Industrial credit inaccessibility The influx of new OEMs and expansion plans of established OEMs has lead to immense downstream capacity expansion over the past five years. And with at least 7 greenfield OE projects scheduled for commissioning in 2009-2011 several suppliers had leveraged their balance sheets to establish a scale of operations required to service these projects. In several cases, © SupplierBusiness Ltd 2009 58 The Indian Supplier Report credit lines have been frozen and in case of projects where credit terms were yet to be established lending rates have reached disproportionate levels. 6.4 Margins Most suppliers were enjoying net margins of 9-13% in 2004 which dipped below 6-7% for most suppliers as commodities across the board had rallied to record levels. OEMs both domestic and international were reluctant to adjust prices significantly and wherever relief was offered through injunctions, payments were not made retrospectively. This led to lower earnings per unit sales while volumes grew through the last five years. “In the last one-year we have seen a phenomenal impact of the raw material price rise. We are supplying an assembly to one of the companies in North America and that uses a lot of stainless steel and due to an abnormal and absolutely price rise in the prices of Nickel the stainless steel prices have gone through the roof and they are gone up 300% since we signed the contract. That is a matter of great worry because even if eventually we get compensated for the raw material prices from the customer there is a lag between the time when we buy the material and the time when the customer will actually pay and the customers are not willing to pay retrospectively. Now the customers haven’t budgeted those price rises in their product pricing and therefore they find it difficult to give it to us. But at the same time we are responsible to run their line so I cannot say, that I won’t buy stainless steel till you promise to pay and therefore the push comes to the supplier finally. Most of the supplier agreements that we have with our customers overseas even compensate us quarterly and some of them even annually. In any case you keep bleeding till the end of the year and then you say that I have bled now compensate me and therefore there is a prospective correction but you’ve bled.” said MK Khera, MD, Kinetic Engineering. The unabashed volatility in commodity pricing made several suppliers revisit their pricing mechanisms. Some pushed for benchmarking contracts with commodity prices on the LME while others proposed to setup a window beyond which the additional burden would be absorbed by the OEMs. “In the beginning when we sign a contract we go through engineering costing transparently, the customer knows exactly what we are spending and what we are earning, everything is known. Typically we also sign with customers an year on year cost reduction proposal 2%, 3%, 2.5% whatever so they know not only that but they knew on the day of the contract the actual cost input subsequently they also know the price rise in the raw materials, exchange rates, energy cost and therefore they have to kind of keep their customers well informed that the customer will not pay because a supplier would be sucked to dry that would not be good. But because the customers have generally have a huge bargaining power and suppliers © SupplierBusiness Ltd 2009 59 Automotive Stampings & Assemblies Ltd (ASAL). We are also distributing products allied to glass such as sealants and they are also retailing through our sister concern called Windshield Experts which is actually in the front end retailing of glass. We are trying to get into product designing from process designing. That is the best way to safeguard your margins” added Arvind Singh. Suppliers with an established presence in the aftermarket have used their user end presence to bolster margins. you know they introduce a deliberate lag in understanding known facts if the steel prices have gone up or the energy costs have gone up it is not that I need to tell them that it has gone up. Asahi India. So they need to kind of become more proactive I would actually feel that the healthiest thing for the industry would be that don’t give us an unreasonable profit but when the input costs shift from the datum that was the foundation of the contract.” said Mr MK Khera.5 Winning new business from new OEMs Citing the influx of new OEMs and expansions by established manufacturers as an august opportunity to spread their footprint several suppliers have invested in capacity expansions. Like suppose I made my own product where I have my own design I get little bit more leeway in terms of designing a better pricing. We integrate our value chain that means we start with Silica sand and convert it to as many products as possible and getting as close to the customer as possible. “We have an integrated business model by which we are not just manufacturers. Certain suppliers are also exploring new product streams where they could acquire or leverage existing design and development capability to increase margins. In terms of designing a better price because then it is my technology. On one side you have commodity giants. So in between them we are sandwiched with very little bargaining power. © SupplierBusiness Ltd 2009 60 . Managing Director. they have. my engineering and design contribution besides manufacturing” said Sanjay Arora. “Integration and value addition – that is really where our whole strategy is focused.The Indian Supplier Report do not match to that bargaining power. Asahi India. we are distributors. because we are here squeezed in between two giants. “Commodity pricing hardening has been hitting us very badly. Head – Marketing. Ispat they are commodity kings in themselves and then our consumers – the OEMs. Essar. it should be automatic. Kinetic Engineering. because of pressure in the car market. MD. Tata Steel. We believe that the integration that we have built gives us the ability to sustain higher margins. there is a tremendous pressure on cost control from their side. MD. 6. Sustainability of margins depends on the value chain you create” said Arvind Singh. marketing. This is largely attributed to the steep learning curve of various vendors who were engaged by the earlier wave of new OEMs and International Purchase Offices. Managing Director. So want to improve on process engineering and application engineering”. “Whenever new players come to India they have their own localization programs. Victor Gaskets. For small © SupplierBusiness Ltd 2009 61 . improving our process flows – having it to be more inline. Now we may be three years behind Europe while in 2002 where we were 15-20 years behind so in 5 years if we have achieved 15 years of competence. normally they do not touch the engine and transmission systems. Executive Director. “Overall the concept of India is being sold fairly well. Spectra Group. Head. other vendors are observing the roll-out of new projects. Sigma Freudenberg NOK. 6. We have already established a plant in Uttaranchal for Tata Motors. Sterling Tools. Luckily for us we are a part of a big group investment is not an issue. Suppliers in other parts of the country are adopting quality and productivity improvement programs. “We are definitely not chasing numbers. we are adding a greenfield project for Fiat in Pune and may be one more for tool room. Volkswagen. Meanwhile. local sourcing for which is deferred till the second phase” added RK Sud. In phase-I of this localization chassis and body panels are localized. “Fiat is coming to India and we are working very hard with them.The Indian Supplier Report Elaborating on ASAL’s plans. If this calls for a greenfield investment we will not hesitate in doing that. “Due to the influx of engine manufacturers and automotive manufacturers coming into the Pune region specifically where we are located. So a part of our job is done to that extent” said Sharad Agarwal.6 Establishing export credentials The perception about India’s product quality has improved substantially in the last five years. We are adding equipment that would add value to the end that we would be able to supply at zero ppm levels to our customers. This has helped local suppliers in attaining export contracts. “India has completely transformed. Vice President & COO. General Motors and Mahindra Tractors are coming here so you see a lot of setups are coming to Pune and we need to see how best we can serve them. Sanjay said. We are also investing into hard infrastructure. We should have a share of their business because Anand Group has been identified as a potential group of automotive component suppliers because the larger companies are looking at a business house which can ensure the business continuity” remarked MS Shankar. confessed Anil Aggarwal. We are investing a lot more into engineering.” Other Pune based suppliers have a similar opinion about the upcoming projects in the region and their opportunities. the local governments are offering direct tax holidays upto ten years. In India when we make promises the promise maker and the promise taker are both willing to make an adjustment right at that very moment. brake products – you are tinkering with the reliability and the general customer perception of quality. Certain suppliers with relatively lesser experience of supplying internationally had to air-ship components when their production lines failed to match the planned timeline. we make promises and we give ourselves the latitude to err here and there and we think that its all understood. the schedules which are given to us by the customer are sacrosanct. Kinetic Engineering. but when it comes to engineering . to respect the word written by the customer. lower and in some cases complete removal of indirect tax levies for five year periods and extended support with assured power supply. Vice President. Bagla Group. But this is absent in the international business. Sanand. Its inherent in our chemistry. the word given. “In terms of quality and delivery a promise made is a promise made. And I think that’s where the opportunity for the supplier industry really is” Khera added.when you look at engine. This is something Indian business do all the time.The Indian Supplier Report and mid-sized models India will be the production hub” Milind Ajgaonkar. they are cast in concrete”.7 Emerging clusters In less than five years. in terms of development time cycles or dies and moulds which are very critical for aesthetically important components. While the benefits offered © SupplierBusiness Ltd 2009 62 . Pant Nagar. less engineering critical China works very well for them in terms of cost. India has to learn to respect. some of these things and focus more on their outsourcing some of these things and focus more on marketing and R&D and customer relationship or the augmented product offerings and therefore I think what is happening globally with all the OEMs is also being imitated to an extent by the Indian automobile companies. And therefore that is where India stands a chance” stated MK Khera. transmission. even the older companies. In each case. most Indian suppliers have been focusing on engineering intensive products where quality and reliability are of paramount importance. “The world today is looking at India particularly for the high value added components. Finding China to be more cost competitive. Marketing. Chakan. in terms of delivery time cycles. Commenting on these Khera said. However the challenges of international supplies have only been realized recently. Today they are recognizing the merit of outsourcing. Haridwar. four new automotive clusters have emerged. Managing Director. They have looked at China in the initial years and they have most likely figured that for much of the things that are aesthetic. water and soft loans. 6. “Indian automobile manufacturers themselves traditionally did much of the hardcore engineering work themselves. Ashok Leyland and Tata Motors to announce plant openings in these areas.The Indian Supplier Report differ from case to case even in the same cluster. 6.Special Economic Zones have been sanctioned by the Government of India. Suppliers have also been invited to dedicated vendor parks at the new locations. For others at least at this point of time it would not make much sense to have two significantly large locations like we do because the capital cost of setting up two facilities would overweigh any logistical advantage” added Arvind Singh. without being bound within a marked area. ITIs. Managing Director. suppliers are finding merit in establishing cluster-specific and customer-centric manufacturing facilities due to the greater scale of volume. Adityapur SEZ in Jharkhand. so we constantly investing in training.9 Attrition The shortage of skilled manpower. Sanand which gained a cluster status overnight after Tata’s pullout from Singur for the Nano project will rejuvenate the automotive industry in the province of Gujarat which in the last decade had only managed to rope in General Motors and AMW. Amid land acquisition problems. three dedicated automotive . The auto industry has also been lobbying for virtual SEZ where export-oriented units (EOUs) can avail of benefits under the SEZ Act. We hire fresh recruits every year diploma holders. “At operator level it hurts but we do a lot of training. the overall manufacturing cost has considerably reduced prompting OEMs like Bajaj. 6. The relocation also gives the opportunity of exporting the vehicle to Middle East and Europe using the Roll-on Roll-off terminal available at the Mundra port in Gujarat. engineers and managers has led to a sharp increase in payouts and consequently attrition rates have also increased. “The size of the country is such that the shear logistics of moving something like glass makes un-competitiveness by itself and if scale allows you to be present in two locations in the country then you have the ability to get the economies of scale from the plant sizing as well as economies from the logistics side so from that point of view yes we have an advantage. Interestingly. Asahi India.8 Logistical spreads – new clusters Increasingly. So primarily the volumes we have allow us to operate from two locations. These include the. Auto and engineering special economic zone (SEZ) being developed at Rajkot in Gujarat and SIPCOT SEZ in Tamil Nadu. What bothers us more is people at higher levels with a skill set of © SupplierBusiness Ltd 2009 63 . engineers. Hero Honda. Managing Director. That is the most difficult part. companies are willing to give 100% pay hikes. It has to be gradual. Employee turnover is a big problem. Ajit added. Marketing. ASAL. Head marketing. We have to dedicate time and resources to train people and by the time they pass through this training phase and it is time for them to add value to the company they start looking for bigger pay packets. Bagla Group. We are not gunning for new business with existing products we want selective business” added Milind Ajgaonkar. suppliers are increasingly looking at adding new technologies and materials to their portfolios. Managing Director. 6. Mahindra Composites. “China has been witnessing growth in composites as high as two times every year. However. retaining employees especially mid and higher level managers has been a difficult task. the number of parts so that is basically a design advantage that cannot be achieved from sheet metal. With Maruti’s recent drive to reduce component weight for every component by one gram. “If you are in Euro2 components you would loose your shirt very soon you have to be Euro 4 ready and fast because scales are different and technology is different if you have arrogance to say that we are the same things will only get worse for you.The Indian Supplier Report years of experience. accomplished often at the cost of passing disproportionate pay hikes. What you can do with composites is simply not possible in sheet metals” said Ajit Lele. to duplicate that in your training” added Anil Aggarwal. continuity and consistency takes a big toll” said Sanjay Arora. it is difficult for us to do the same because then it would spoil the structure of the organization. Other OEMs too are planning vehicle weight reduction programs.10 Introducing new materials/ technologies To match global product standards. India will witness a phenomenal rate of growth of composites as weight and design flexibility become imperative”. suppliers offering alternative materials have become aggressive. And then you have the light weight and flexibility advantage of a composite panel. “Continuity has been a very big problem. And more mature suppliers have become selective in their choice of programs and components. Sterling Tools. “If we substitute a steel component with a composite that is not a very big attraction or a cost saving or a value addition but if we have a combination of parts that we can make in composite which reduces the tooling cost. © SupplierBusiness Ltd 2009 64 . To make matters worse. Vice President. Fiem Industries. “As most vehicles in India have a Japanese origin so their design centres are in Japan. suppliers gain access to production programs of Indian OEMs and then use their production base as a gateway to the regional aftermarket and other OEMs in the region. “Everything in business is about the predictability of the unknown and if unknown were to be as unpredictable as generally is the case. if you can reduce it to an extent then I think by a kind of portfolio customers dispersed across the globe and across currencies then it would help” added MK Khera. Fiem Industries and Minda Group have initiated research and development centres in Japan to gain access to Japanese vehicle programs at an early stage of development.The Indian Supplier Report 6. Working on a two pronged strategy. which gives us leverage where our engineers are having the access of going to their offices in Japan and getting a clearer understanding of design issues. Kinetic Engineering. The inflow of FII and FDI money in India and its subsequent outflow following the financial meltdown lead to a 12% appreciation (2007/08) followed by 21% (year to date) depreciation. Such high volatility adversely impacts businesses where price revision is annual. Fully assembled products attract a 25% © SupplierBusiness Ltd 2009 65 . suppliers have been following OEMs to new geographies. Minda and Subros have made considerable investments in the ASEAN region. MD. Marketing. This leads to speedy development of new products” said SK Bhatia. 6. Sr Vice President. 6.13 Going global Following in the footsteps of Indian OEMs who are setting up international assembly and manufacturing facilities. we gain a 15% cost advantage. Indian suppliers are strategically opening development centres at locations closer to the parent OEMs. Such centres also help in international liasoning.11 Currency The high pace of growth of the Indian economy has also adversely hurt the earnings of suppliers with considerable exposure to export earnings. In two separate cases. “By locating our assembly plant in Iran. Various suppliers have tried to move to Rupee denominated contracts or have asked for a quarterly currency benchmark to ensure that project profitability is not hurt by high volatility. Local assembling has also been used to lower the import duty disadvantage. Endurance.12 R&D impetus To strengthen their prospects of supplying to future programs. So when we become less competitive then we would be ready in other bases. However not everyone is keen on establishing an international base yet. Varroc Group. And then we tend to loose your cost competitive advantage because in either case we employ the best consultants from Europe .The Indian Supplier Report duty in Iran and semi assembled products would attract a 10% duty” said Marketing Manager. a lot of investment and high capital investment needs to be made. That would be the time to move outside. Bagla Group. Pricol. So to reach that stage we have to bag some orders. we have to compete with global players. “Our OEM (buyers) tell us that that India and China will constitute roughly 15% of their requirement by 2008 and further 20% by 2009. While Eaton and TRW the biggest players individually do more than 500m each. Africa and Eastern Europe would also come to limelight because Eastern Europe is still preferred for logistical advantages so we have to track them very closely” added Milind Ajgaonkar. Vinod Sharma. © SupplierBusiness Ltd 2009 66 . This balloon of low cost country would only be with us for the next five years. Vice President. Marketing. head. All put together we do 100m valves. “The challenge for us is that we have to upgrade our technology. Another supplier Varroc has been expanding its international footprint aggressively and aspires to become a leading global supplier of engine valves. India is a very small player – including all Indian suppliers (of valves) there are four of us. Marketing. So when this balloon leaves us we shoud chase it to the next country. There is along way to go and we have to leverage Indian engineering cost and skills while adding value to the manufactured product” said Ashok Chandak. The Indian Supplier Report Chapter 7: India OEMs and their product plans © SupplierBusiness Ltd 2009 67 . The company also offers the Omni and Versa microvans. Tata is under financial constraints and this may delay some of the future model programmes like the Prima. Tata Motors is expected to launch the new generation of the Indigo. Like the Indica. The Nano is expected to add significant volume to Tata’s passenger car sales and will help the company gain marketshare. Due to the global slowdown. and the losses at JLR. The zen Estilo would also be replaced and © SupplierBusiness Ltd 2009 68 . Alto. the Swift D’Zire in the C1 segment and the SX4 in the C2 segment. In 2008. we expect the new and old generation Indigos to co-exist for sometime. Wagon R. The Alto is India’s largest selling car and will continue to have a dominant market position in the near term. drop in HCV sales in India. Maruti is working on a facelift for the car. Currently the company offers the 800.The Indian Supplier Report Tata Motors Tata Motors is the dominant player in the Indian truck market and amongst the top-three players in the passenger car segment. The carmaker is a small car specialist and has been freshening up its product portfolio to capture all segments of the market. The popular Wagon R is also ready to be replaced and a replacement is expected in 2011. The Nano has been introduced but due to the Singur land-acquisition crisis and shift to limited production ta Pantanagar plant. including the Safari SUV. The Indica has seen a new generation platform being introduced this year in the form of vthe Indica Vista. Tata sells the Indica and Indigo in the B and C1 segments respectively and also has a bunch of utility vehicles. Zen Estilo. However. Maruti-Suzuki Maruti-Suzuki has a dominant 54% share of the Indian passenger car market. both the old and new generation platforms will co-exist in the market for a long time as the Indica (old generation) sales are still much higher than the Indica Vista (new generation sales). the Swift and the Ritz in the B-Segment. we expect Tata Motors to face considerable production constraints till the end of 2010. the company accounted for more than 12% of the total passenger car market in the country. Towards the end of 2009. Tata has promised delivery of 100. the Sumo Grande and Sumo Victa UVs.000 Nanos by the end of 2010 after which the main plant at Sanand (Gujarat) will start production. and A-Star in the Asegment. In the near term. © SupplierBusiness Ltd 2009 69 . A three-box version of the i20 is also reported to be under development. thanks mostly to its conservative looks. making way for as new platform. Also on the cards is the SUV / crossover variant of the Logan. While the Santro / Atos / Atos Prime has been replaced globally by the i10. Mahindra is also reported to be working on a full-size SUV. This is because the Santro still sells in healthy numbers. This SUV would also be targeted at the international (USA) market. Hyundai continues to sell both models together in India. The company is reported to be working on a replacement for its popular Scorpio SUV. the company is working on a small car that would be slotted below the Santro. The company has kept the same policy for the getz and its replacement the i20. Hyundai Motors India Hyundai has been fairly successful in the Indian market and is currently the number two carmaker in India. a (better looking) hatchback variant of the Logan. This would be Hyundai’s response to the Tata Nano.The Indian Supplier Report moved to the new Alto platform. On the Mahindra-Renault joint-venture side. Mahindra-Renault plan to counter this by introducing the Sandero. Maruti is also rumoured to be working on a small car that would slot below the current portfolio. to be targeted higher than the Scorpio. exporting the i10 globally from here. Keeping in mind the Nano’s expected popularity. The Swift would be replaced in 2011 as well. the Logan has not been doing well. For the future. This would counter the Swift D’Zire from the Maruti stable. Maruti will move most of its offereings to the new range of KB-series engines that are being offered in the A-Star and Ritz currently. Mahindra Mahindra’s recently introduced Xylo utility vehicle / minivan has been fairly successful. The company also uses the manufacturing facility in Chennai as an efficient export base. The Indian Supplier Report Toyota Toyota currently sells the Innova. Aveo U-Va (hatchback). VW Volkswagen will introduce the Polo in India shortly. The next generatuion Fiesta is a sharper and slightly smaller design and is targeted at the volume segment of the market. The new Spark is expected to follow the Beat concept. The poplo would be the first volume product from VW in India. Also under development is a small car based on the UP! Concept. Optra and Captiva in the Indian market. Not only will the facility manufacture small cars for the Indian market. Nissan Nissan is setting up a large manufacturing facility in Chennai.000. The company is working on introducing the next generation Spark (M300) in the Indian market by the end of the year. Aveo (sedan). Both would be introduced in 2010. The company is also working on a three-box variant of the Polo targeted at the Indian market specifically. GM GM sells the Spark. Both of these are based on the NBC2 platform and are targeted at emerging markets like India. it will also be a manufacturing base for the UK and European © SupplierBusiness Ltd 2009 70 . Ford Ford is planning to launch the next generation Fiesta in the Indian market. The company’s entry into the volume segment would be driven by a small car and its three-box variant that the company has under development. The Cruze sedan would be launched in 2009 and GM is malso working on the replacements of the U-Va and Aveo for the Indian market. The small car is being developed as a low-cost car and is expected to be priced at less than INR 300. Corolla and camry and would introduce the Fortuner SUV in the market soon. The company is expected to keep the new Fiesta going concurrently with the current generation on sales in India. Both of them would be replaced in 2010. © SupplierBusiness Ltd 2009 71 .The Indian Supplier Report markets. Main amongst these would be Ashok Leyland-Nissan. Kamaz and Hino. Daimler. Daimler had entered into a joint-venture with the Hero group to manufacture heavy commercial vehicles. Hino has introduced its range in India and is currently importing units from Thailand. The company is also expected to introduce commercial vehicles under the Mitsubishi-Fuso brand. Bothe Force-MAN and Mahindra-Navistar ventures will manufacture the entire range of commercial vehicles. MAN is supoosed to be working on a range of vehicles more suited for the Indian market. The range would be heavy commercial vehicles. Mahindra-Navistar. Manufacturing in India is expected to start from 2012. Nissan will manufacture the next generation Micra / March at Chennai alongwith their three-box variants. the two companies are re-xamining the plans and may go forward with a reduction in planned volumes. However. and not Daimler. Force-MAN. Kamaz has entered the Indian market and has plans to manufacture here. Ashok Leyland and Nisan have announced a joint-venture to manufacture LCVs in India. However. Daimler trucks are expected to be priced at the high-end of the market. the Hero group has now decided to withdraw from the venture and Daimler will go at it alone. New Truck ventures The Indian market will see a number of new truck ventures being introduced in the near future. owing to the conomic slowdown and the collapse in commercial vehicle sales in india. The Indian Supplier Report Chapter 8: Company Profiles © SupplierBusiness Ltd 2009 72 . Krishnamurthy. industrial engines.The Indian Supplier Report Amalgamations Group Engine components. Tata Johnson Controls. Ford. Bharat Stage III. Its operations include automotive components manufacturing. bushings and thrust washers to OEMs in the passenger car. Hyundai Motors India. Simpsons. large diameter bearings. In 1955. was established in 1994 for the production of cylinder liners. Executive Director. forgings. Amalgamations Valeo Clutch Pvt Ltd: is a leading manufacturer of clutches in the range from 160mm to 380mm and self-centring clutch release bearings for passenger cars. thrust washers Amalgamations Valeo Clutch Pvt Ltd: Automated manual transmissions. HCVs and tractors. HCVs. the company commenced production of diesel engines through an alliance with Perkins. diaphragm clutches. pistons. special alloy steel rings. The automotive business comprises nine automotive components companies including diesel engines. Coimbatore and Hosur (all three in Tamil Nadu). CRC & CSC (Metallic &Plastics). Maruti Udyog. IP Power Cylinder Systems Ltd. a part of Federal Mogul. Its automotive supplier business consists of nine companies: Simpsons & Co Ltd: formed in 1840 to manufacture coaches. trading and distribution. Sivasailam. Executive Director. Senior Officers A. The company manufactures cylinder liners. Hyundai Motors India.Engineering Plastics Division: manufactures high precision tools and custom-moulded engineering plastics from its two facilities in Bangalore (Karnataka) and Maraimalainagar (Tamil Nadu). metal cutting tools. Toyota Kirloskar Motors and Visteon. Chairman A. self adjusting © SupplierBusiness Ltd 2009 73 . pins. In 1938.CMC. Bimetal Bearings Ltd: supplies engine bearings. Iveco.600 002 Tamil Nadu India Tel: +91 44 2858 4918 Fax: +91 44 2858 3179 Internet: http://www. TAFE and Tata Motors. The company has two manufacturing facilities in Chennai (Tamil Nadu). automatic transmissions. The company manufactures engines meeting Bharat Stage II norms for on-highway applications. bushings. Maruti Udyog. batteries. The company has Ashok Leyland. The company has three manufacturing units located around Chennai (Tamil Nadu). flexible flywheels. grey cast iron steel rings. copper lead bearings. defence and railway sectors. The company has a presence in the aftermarket with its brand Bimite. services and plantations. clutches Address Amalgamations Private Limited 861/862. in technical and financial collaboration with Associated Engineering Plc (UK). Mahindra & Mahindra. HM Mitsubishi. and it now supplies diesel engine products ranging from 20 to 110 bhp. TAFE Engineering Plastics Division supplies to domestic clients such as General Motors. Its manufacturing facilities are located at Chennai. flange bearings. IP Rings: supplies speciality steel piston rings and several transmission components using orbital cold forming technology. overlay plated engine bearings. Anna Salai Chennai. railway coaches and public service vehicles.amalgamationsgroup. UK. dual mass flywheels. Amalgamations was established as a holding company for six companies. Tata Toyo Radiators. Mahindra & Mahindra. rings IP Rings: Bevel gears. Kyoto. nodular iron steel rings. pinions. Operations R Krishnan. India Pistons Ltd: started operations in 1949 as India's first automotive ancillary manufacturing unit. steam passenger buses. pistons. pistons and rings. carriages. which have grown over time to 43 companies. Finance & Marketing Products Amalgamations Repco : Clutch driven plates.com Amalgamations Group is one of India's largest light engineering groups consisting of 43 companies. Lear. Tata Motors and TVS Motors as its customers. transmissions and tyre retreading. synchrocones Bimetal Bearings: non overlay plated engine bearings. LCVs. tractors. nifflex expander based three piece oil rings. Vice Chairman K Sankaran. Eicher Motors. gears. clutch cover assemblies. paints. motorcars. US Tier I and US Tier II norms for tractor applications. a wholly-owned subsidiary of India Pistons. The company supplies to Ford India. hydraulic actuators. pins. fuel-injection systems. TAFE. clutch carbon release bearing assembly India Pistons: Cylinder liners. The company has a total annual production capacity of 1. Shardlow India supplies to Ashok Leyland. stub axles. Recent Developments Corporate strategy In recent years. Simpsons. Shardlow India was formed as a joint-venture between the Amalgamations Group and Ambrose Shardlow (UK). Contracts India Pistons Repco is the single-source supplier of flywheel starter ring gears to Ashok Leyland. solid flywheels India Pistons Repco Ltd: Flywheel starter rings gears Shardlow India Ltd: incorporated in 1960 as a manufacturer of precision forgings for crankshafts.2m flywheel starter ring gears with two manufacturing facilities near Chennai (Tamil Nadu). axle beams. Bimetal Bearings shares an intellectual property and technology transfer agreement with Daido Metal Corporation (Japan) for the production of a range of high performance and Euro III compliant lead-free materials. IP Rings Ltd has a technical tie-up with MIBA (Austria) for carbon friction lining of synchrocones and other synchronizer components. The Group has developed a strong relationship with almost all the OEMs in the country. Joint-ventures In December 2007. gear blanks and steering arms. The company operates two forging units one each in Chennai and Hosur (both Tamil Nadu). self centring clutch release bearings. Amalgamations Valeo is a joint-venture between Amalgamations Group and Valeo (France). manufacturing process upgradation and introduction of contemporary overplay plating process. IP Pins & Liners Ltd is a joint-venture within India Pistons Limited set up in 1988 at Maraimalainagar (Tamil Nadu. Amalgamations Repco Ltd: Incorporated in 1967. Kirloskar Oil Engines.The Indian Supplier Report technology clutches. to make pistons for Euro IV compliant diesel and petrol engines. Hyundai India and Tata Cummins. Amalgamations Repco merged group company India Pistons Repco with itself. Amalgamations has extended its alliances with new suppliers to gain access to technology and customers while offering its extensive manufacturing and supply expertise in the local market. Repco (Australia) and Clevite Corporation (USA). 13. Bimetal Bearings is a joint-venture between Amalgamations Group. facilitating the global one ones to speed up their localisation programs. Acquisitions In July 2005. Tata Motors and defence establishments. India Pistons Repco was formed as a joint-venture between the Amalgamations Group and Repco (Australia). 31 March 2008) Employees c.500 employees. Amalgamations Repco manufactures clutch and brake systems. India Pistons has hived off its facility at Maraimalai Nagar in favour of the new entity where the two partners hold equal equity.000 (2008) The Group is a conglomerate having 43 companies with 34 manufacturing facilities and 12. The Group is focusing on exports and aftermarket to improve margins. India) for the production of precision heat treated and machined steel parts for the automotive industry. Plants India (35) Sales Group: INR55bn (€869m. Infrastructure TAFE Engineering Plastics Division has an in-house tool room facility with © SupplierBusiness Ltd 2009 74 . Hyundai Motors India and Tata Cummins. IP Rings Ltd is a joint-venture between the Amalgamations Group and Nippon Piston Ring Company Ltd (Japan). The company supplies to Ashok Leland. TAFE. India Pistons Repco Ltd: Incorporated in 1962 for the production of flywheel starter ring gears. Amalgamations Group's major customers include all major OEMs in the country. It was merged into Amalgamations Repco in 2005. India Pistons entered into a joint-venture agreement with Mahle. The Indian Supplier Report NC milling machines and EDMs for production of moulds suitable for injection moulding machines upto 3,200 tonnes. Additionally, the division has a moulding shop with machines ranging from 50 tonnes to 3200 tonnes. Bimetal Bearings’ Coimbatore (Tamil Nadu, India) based facility specialises in the the production of non overlay plated engine bearings, while Hosur (Tamil Nadu, India) based plant specialises in overlay plated, copper-lead bearings, large diameter and flange bearings. The Thoraipakkam (Chennai) based facility manufactures bushings and thrust washers while Sembiam (Chennai) based facility houses alloy powder facility, aluminium alloy cladding line and sintering lines for the production of copper lead strips. Amalgamations Repco has the capability to manufacture clutch driven plates from 160mm to 412mm. The company has a CAD centre and computer controlled quality rigs to meet precise standards. India Pistons Repco is equipped for the production of ring gears with diameters in the range of 190mm to 440mm. Certifications Simpsons & Co. has been accredited with ISO/TS 16949:2002 and ISO 14001:1996 status. TAFE Engineering Plastics Division has been accredited with TS 16949, ISO 9001, ISO 14001 and UL status. Each of the three manufacturing units operated by India Pistons in individually compliant with TS 16949-2002 and ISO 14000 requirements. IP Rings is certified for ISO/TS 16949:2002 and EMS 14001 requirements. All facilities operated by Bimetal Bearings are QS 9000 certified. The Coimbatore plant is TS 16949 certified. Amalgamations Valeo Clutch Pvt Ltd has been acreditied with ISO/TS 16949 and ISO 14001 status. Shardlow India Ltd is ISO 9001:2000 certified. Amalgamations Repco’s Quality Management System is ISO 9001:2000 certified while its Enviroment Management System is ISO 14001:2004 certified. Financial Overview During the financial year ended 31 March 2008, Amalgamations Group recorded sales of INR55bn (€869m, 31 March 2008). Outlook The Amalgamations Group has an extensive product portfolio and strong technology partners which help the company in securing supply contracts especially when OEMs use a follow through source approach. Furthermore, Amalgamations will benefit from the new OEMs who are in various stages of launching their vehicle programs in India. © SupplierBusiness Ltd 2009 75 The Indian Supplier Report Amco Batteries Polypropylene and hard rubber batteries Address Amco Batteries Limited, Addison Building, First Floor, #803, Anna Salai, Chennai - 600 002 Tamil Nadu India Amco Batteries is one of the leading battery suppliers for two-wheelers and supplier of polypropylene and hard rubber batteries for OEMs and aftermarket. Amco Batteries is part of the Amalgamations Group, one of the largest light engineering groups in India. Established in 1955, Amco Batteries has a strong presence amongst the domestic OEMs. Amco's customers include Bajaj Auto, Cummins India, DaimlerChrysler, Fiat, Hero Honda, Hindustan Motors, Honda Motorcycle and Scooter India, Honda Siel, Hyundai, Kinetic Motors, LML, Mahindra & Mahindra, Maruti Udyog, General Motors, Royal Enfield, SAS Motors, Tata Motors, TAFE, Toyota, TVS Motors, Yamaha Motors India and VST Tillers. Tel: +91 44 3027 7322 / 3027 7316 Fax: +91 44 – 3027 7313 Internet: http://www.amco.co.in Senior Officers A.Sivasailam, Chairman Jayshree Venkatraman, Vice President C Rajagopalan, Director Recent Developments Corporate strategy Through means of sale of assets Amco has been able to convert itself into a zero debt company aligning with international financial practices. Liquid reserves are being used to increase Amco’s presence in the two-wheeler and the tractor segments. Further, Amco has developed batteries for non- automotive applications such as home inverters to capitalise on the housing sector growth and its joint-venture Amco Saft India is positioned to increase its presence in the Indian infrastructure sector. Amco Batteries projects its sales growth between 30-35% per year and aims to double its sales by 2009. In 2004, Amco Batteries terminated its joint-venture with its long-term partner Yuasa Corporation because Amco felt that it has the capabilities to develop its own products at its R&D Centre and felt little value-addition in the joint-venture. Joint-ventures In February 2006, SAFT of France bought a 51% controlling stake in Amco Power Systems' joint-venture now known as Amco Saft India. The jointventure develops and manufactures nickel cadmium and lithium batteries for infrastructure and defence industries application. Amco Batteries had a long-term alliance with Yuasa Corporation. The collaboration was formed in 1984 as technical tie-up and developed into a financial joint venture in 1986. Yuasa Corporation had a 15% stake in a jointventure called Amco-Yuasa with a royalty arrangement on technology transfer and sales. Amco Batteries ended the joint-venture in 2004 citing that there was little value-addition from the JV. Contracts Amco has the contract from Maruti to supply batteries to its vehicles such as the 800, Alto, Baleno, Esteem, Gypsy, Omni, Versa, WagonR and Zen. Amco batteries are OE fitment in the Mahindra Bolero, Tata Safari and Sumo utility vehicles and Ashok Leyland Comet and Tusker commercial vehicles. Amco supplies batteries to the Honda City, Mitsubishi Lancer, Tata Indica and Toyota Corolla vehicles. Certification Amco is accredited with ISO9001, ISO9002, QS 9000 and ISO 14001 certifications. Products Polypropylene and hard rubber batteries Plants Bangalore(1), Chennai(1) Sales INR903.14m (€14.34m, 31 March 2008) (Year to 31.12.08) New Product Developments Amco Batteries has invested heavily in its research and development centre. It is © SupplierBusiness Ltd 2009 76 The Indian Supplier Report recognised by Department of Science and Technology, Government of India, because it contributes towards import substitution and indigenisation. Amco Batteries announced that it has started manufacturing nickel cadmium batteries for hi-tech applications. Financial Overview In the financial year ended 31 March 2008, Amco Batteries recorded net sales worth INR903.14m (€14.34m, 31 March 2008), a decline of 1.97% compared to previous year's sales of INR921.29m (€15.91m, 31March 2007). Amco recorded a net operating profit of INR51.59m (€0.82m, 31 March 2008) in 2008 compared to earnings of INR55.43m (€0.96m, 31 March 2007) in 2007. The company registered a net profit of INR3.04m (€0.05m, 31 March 2008) in 2006 compared to a loss of INR11.42m (€0.2m, 31 March 2007 in 2007. Year 2008 2007 2006 2005 Year 2008 2007 2006 2005 Net sales, INR m 903.14 921.29 903.44 734.24 Net sales, EUR m 14.34 15.91 16.82 13.00 Operating profit, INR m 51.59 55.43 50.56 45.5 Operating profit, EUR m 0.82 0.96 0.94 0.81 Profit before tax, INR m 5.91 19.96 21.48 20.33 Profit before tax, EUR m 0.09 0.34 0.40 0.36 Net Profit, INR m 3.04 11.42 13.62 15.09 Net Profit, EUR m 0.05 0.20 0.25 0.27 Outlook Amco Batteries enjoys a leading position as a supplier of batteries to the automotive two-wheeler segment. However, the company faces stiff competition from Exide and Amara Raja Batteries in the four wheeler batteries segment. The automotive batteries industry was facing competition from imports but the latest budget has helped reduce the final price of Amco batteries which will translate into higher sales for the company. Its target to double its sales by 2009 will be aided by its foray into new areas such as infrastructure and defence sectors. © SupplierBusiness Ltd 2009 77 The Indian Supplier Report Amforge Industries Steel forgings Address Amforge Industries Limited United Bank Of India Building, 6th Floor, Sir P M Road, Mumbai - 400001 Tel: +91 22 2282 8933 Fax: +91 22 2287 1227 Internet: http://www.amforgeindia.com Amforge is a leading supplier of forgings to its domestic and overseas customers. Amforge now maintains one production facility in Chinchwad, near Pune which is engaged in the production of forgings for two-wheelers and four wheelers. Amforge's domestic OEM customers consist of Ashok Leyland, Eicher Motors, GM India, Hindustan Motors, Honda SIEL, Hyundai Motors India, Mahindra & Mahindra, Maruti and Tata Motors and its Tier-1 customers include Caterpillar, Dana, Escorts and Sundram Clayton. The international customers are Benteler, Contex, Eumatic, Flowserve, Indespa, Indimet, John Deere, Ketlon, NSK Steering and Velan. Senior Officers Yogiraj Makar, Chairman Emeritus Puneet Makar, Chairman Fali Mama, Director, Corporate affairs Recent Developments Corporate strategy Amforge is emerging from a bad phase. The company has divested its Chakan loss-making unit and has suspended production at the Bhandup and Faridabad unit. The company had been facing pressure from the demand of clients, which required it to arrange for machining operations which could not be arranged due to lack of funding capabilities. Other problems included obsolete production technology, high labour costs, government levies, low operating levels and pollution related problems. In order to turnaround the operations, Amforge is now focusing only on its Chinchwad based plant which is now being upgraded to match modern requirements. The company is revamping operations, divesting troubled units, nonproductive assets and concentrating on profitable product lines. The company also plans to bring in fresh capital proceeds generated by sales of these assets. Divestments In June/May 2005, Amforge Industries sold its Chakan (Pune, Maharashtra) based forging plant to Mahindra Forgings Limited (Mahindra Systech) for an estimated sum of INR 2.5bn (€44.25m, 31 March 2005). The facility supplied Tata Motors, Maruti Udyog, Mahindra & Mahindra, Kirloskar Oil Engines and Escorts. The facility has an installed capacity of 40,000 tons for crankshafts, steering knuckles and connecting rods and recorded sales worth INR 2.1bn in 2005. Amforge divested the unit because it was unable to make substantial funding required to meet increasing client demands. In October 2004, Amforge suspended operations at its Bhandup facility. In March 2002, Amforge India sold its wheel manufacturing plant at Faridabad to Wheels India Ltd for a cash consideration of INR 108.2m (€ 2.55m, 31 March 2002). Financial Overview During the financial year ended 31 March 2008, Amforge Industries generated sales worth INR507.88m (€8.07m, 31 March 2008) a drop of 9.98% compared to INR564.23bn (€9.74m, 31 March 2007) in 2007. Amforge registered a pre tax loss of INR9.72m (€0.15m, 31 March 2008) compared to a profit before tax of INR 18.92m (€0.33m, 31 March 2007) in 2007. Further the company registered a net loss for the financial year 2008 amounting to INR22.34m (€0.35m, 31 March 2008) in 2008. Amforge’s poor performance was largely linked to slowing growth in domestic demand and increased borrowing costs. Year 2008 2007 2006 Gross sales, INR m 507.88 564.23 466.52 Operating Profit, INR m 4.86 32.79 -37.04 Profit Before Tax, INR m -9.72 18.92 -61.38 Net Profit, INR m -22.34 110.23 -58.26 Products Bridge forks, cam shafts, connecting rods, crankshafts, differential cases and covers, gears, hinges, hubs, pinions, rear axle shafts, rocker arms, shifter forks and levers, spindles, steering knuckles, steering levers and yokes, stub axles, track links, and valve bodies Plants Maharashtra Sales INR507.88m (€8.07m, 31 March 2008) (Year to 31.03.08) Employees N.A © SupplierBusiness Ltd 2009 78 The Indian Supplier Report 2005 2004 2,530.55 2,209.85 129.21 264.56 -25.82 130.70 -133.06 130.70 Year 2008 2007 2006 2005 2004 Gross sales, €m 8.07 9.74 8.69 44.79 41.28 Operating Profit, € m 0.08 0.57 -0.69 2.29 4.94 Profit Before Tax, € m -0.15 0.33 -1.14 -0.46 2.44 Net Profit, € m -0.35 1.90 -1.08 -2.36 2.44 Outlook Amforge is focussing on modernisation, upgradation, and streamlining its operations in order to reduce costs and improve productivity and capacity utilisation. The company has achieved a fair degree of success in improving its product development capability but continues to be plagued by lack of resources. The company is expanding its capacity and range of products to meet increasing customer demands. © SupplierBusiness Ltd 2009 79 The Indian Supplier Report Amtek Auto Engine, suspension and transmission parts Address Amtek Auto Ltd, 4 Local Shopping Centre, Bhanot Apartments, Pushp Vihar, New Delhi 110 062 India Tel: +91 11 2996 1769, 5234 4444 Fax: +91 11 2905 4554, 2905 7867 Internet: http://www.amtek-group.com Senior Officers Arvind Dham, Chairman & Managing Director, Amtek Group Santosh Singh, Group Finance Controller, Amtek Group DS Malik, MD, Amtek Auto RB Singh, CEO, Ahmednagar Forgings Arvind K.Mehta, Technical Director RK Katiyar, Director, Operations John Flintham, CEO, Overseas Operations RB Welch, CFO, Overseas Operations Products Steel forgings, SG & Grey Iron castings, ring gears, flywheel & flex plate assemblies, machined crankshafts, connecting rods & power cylinder modules, gear shifter forks, locomotive piston module parts, steering & suspension assemblies, aluminium case housing Plants Germany, India, UK, USA Sales Amtek Auto: INR12.83bn (€189.54m, 30 June 2008) (Year to 30.06.08) Employees c. 2,840 (2008) Amtek Auto is part of the €620m Amtek Group which is a leading supplier of engine, transmission and suspension parts, assemblies and systems with operations in India, Germany, UK and USA. The group is amongst the largest manufacturer of flywheel ring gears in the world and one of the leading manufacturers of piston connecting rod modules and gear shifter forks in India. The group is also one of the largest manufacturers of small and medium sized steel forgings and the second largest forgings manufacturer in India. The Amtek Group is divided into three companies: Amtek Auto is the flagship company of the group Amtek India Ltd is engaged in the manufacture of gear shifter forks and yokes Amtek Siccardi is the group’s joint-venture with Ateliers de Siccardi (France) and is engaged in the manufacture of machined crankshafts, steering knuckles and flywheel housings for LCVs and farm tractors Most other automotive activities of the group are structured under the flagship company Amtek Auto. The recently acquired companies - Ahmednagar Forgings in India, Smith Jones Inc in USA and GWK Group in UK (with its two subsidiaries) are all subsidiaries of Amtek Auto. The second acquisition in UK by Amtek was of Lloyds Brierly Hill, which operates under Benda Amtek as Lloyds’ (Brierly Hill) business of ring gears and inertial gears complements Benda Amtek’s business. During the last two years, Amtek Group has grown by making acquisitions. The company’s acquisitions in Germany, UK and USA have increased its global presence tremendously. The consolidation of Benda Amtek’s business through acquisitions of Smith Jones Inc. in USA and Lloyds (Brierly Hill) in UK, has made Amtek Group the largest manufacturer of flywheel ring gears in the world. Amtek Group OEM customers in India include Ashok Leyland, Bajaj Auto, Daimler, Fiat, Ford, Hero Honda, Honda, Hyundai, Mahindra & Mahindra, Maruti Udyog, Tata Motors and Yamaha and supplier customers include GKN, Carraro and Rico. The group’s international customers include Benda Kogyo, BMW, CaseNew Holland, Ford, GM, John Deere, Mitsubishi, Renault and Tesma. Recent Developments Corporate Strategy In recent years, Amtek focused on integrating its Indian facilities with acquired units in Europe and North America. Ford’s role in scaling Amtek’s operations has been critical. In most cases the acquisitions made by Amtek had a strong support with Ford as a long term customer. In certain cases, Ford has increased rates paid at acquired facilities to help Amtek in improving earnings. The company’s footprint in UK has made it the largest precision machining company in the country with business woth US$650m in UK alone. While the balance export earnings were US$120m in 2008, Amtek has high risk business model due its dependence on UK. Amtek has been shifting forging and foundry operations of acquired units to India while positioning its international facilities as development and precision machining centres. Significantly, the company has also signed two joint ventures, both focusing on manufacturing components in India for exports. In the domestic market, Amtek has acquired a technical license from Teksid to © SupplierBusiness Ltd 2009 80 Garrett. CNH.2m (€1. In February 2006. Ford. In December 2002. Amtek acquired JL French’s UK based HPDC Aluminum operations. Ford. 31 December 2002). The unit is essentially focused on supplying assemblies to Magna’s customers in Asia and Europe. Amtek Group acquired GWK Automotive for INR1. Amtek acquired USA-based Smith Jones Inc. Amtek acquired a 70% stake in the company in a deal valued at €28m. AEK.23m. GKN among others. Amtek signed a joint venture with Magna Powertrain for manufacturing flexplate assemblies. rapid prototyping. Amtek announced 100% acquisition of UK-based Sigma Cast Group Ltd. Amtek acquired Zelter GmbH. Also in 2002.1m. This acquisition will help add customers like General Motors. In June 2007. Acquisitions In November 2007. India oriented towards the export market. LCVs. Financial details of these acquisitions were not disclosed. 31 October 2003) in an all cash deal. In 1999. InterForm. The deal made Amtek amongst the largest manufacturers of turbochargers in the world. which in turn wholly owns Amtek Gears Inc. Zelter is counted amongst the top-three manufacturers of turbochargers worldwide. Midwest is the largest ring gear manufacturer in the US. a manufacturer of flywheel ring gears for a total consideration of US$20m (€19. Sigma Cast group has 100% owned subsidiary Sigma Cast Iron Ltd. Lloyd is the largest manufacturer of flywheels and ring gears in UK. stationary engines and earth-moving equipment. Amtek acquired Midwest Manufacturing Co. Amtek signed a joint venture with Belgium based VCST for manufacturing gears and shafts at Pune. In October 2003. Amtek Auto entered into a 50:50 joint-venture with Germany based Neumayor Takfor GmbH for the manufacture of fractured connecting rod assemblies for a new diesel engine project of Maruti Udyog in India.7bn (€3. Dana. precision machining and assembly facilities. Tata and Fiat. GWK is the largest machining company in UK with expertise in production of modules and assemblies. M & HCVs and other applications like locomotives. Opel. a machining company supplying to automotive OEMs like Daimler. Amtek entered into a technical alliance with Teksid for manufacturing aluminum cylinder blocks for Suzuki Powertrain. Amtek acquired UK based..3L Fiat Diesel engine is being used in three successful platforms and is expected to be introduced on more platforms in the coming years. In July 2005. Triplex Kelton recorded sales of US$ 152m. Amtek plans to hike its equity in the Zelter to 100% by 2008. passenger cars.08m. Borg Warner. the group has acquired small companies like Wesman Halverscheidt Forgings.57% stake in Ahmednagar Forgings for INR55. Joint-ventures In November 2007. In end 2002. The company has two production facilities in Germany. In January 2005. Amtek Group acquired a 62. 31 December 2002). The 1. In 2006. USA. Land Rover. The company is into the manufacture of © SupplierBusiness Ltd 2009 81 . Amtek Group entered into a joint-venture with Ateliers de Siccardi (France) to set up Amtek Siccardi. The company has four facilities in India and manufactures a variety of heavy and medium forgings for all major automotive industry segments including two-wheelers. Triplex Ketlon Group for an undisclosed sum. Amtek Group acquired 100% equity of Amtek Investment US Inc. Maruti Udyog has nominated this JV as the sole supplier of fractured connecting rod modules for its diesel engine plant at Manesar. In November 2006. testing. In August 2003. Indsil Auto Components and Chamundi Motors in India. In July 2005. The company has a manufacturing facility in Bay City. During the past three years. Michigan (USA) and is engaged in the manufacture of ring gears. which is one of the largest suppliers of turbocharger components in the world. Amtek Auto acquired Lloyd (Brierly Hill) for an undisclosed price. In April 2007. Acquired operations include designing.The Indian Supplier Report manufacture engine blocks for Suzuki Powertrain and Tata Fiat as a single source supplier. Also in 2005. INR m 3151. ft. Detroit Diesel (USA) signed a long-term global sourcing contract with Amtek for supply of eight varieties of ring gears for their engine manufacturing operations. In 1997.8 Gross sales. The forging division of Amtek Auto. 30 June 2008). Amtek set up Benda Amtek.43 55.18 41.24 30. Year 2008 2007 2006 Year 2008 2007 2006 Gross sales.40 55.96bn (€217. Amtek won a global sourcing contract from John Deere Worldwide for the supply of components for three agricultural platforms. near Pune (Maharashtra). The company is into the manufacture of flywheel ring gears and assemblies.96% over INR2.92 2893. Profit before tax was INR3.87m. Also on the expansion plan is its Coimbatore (Tamil Nadu) foundry unit by commissioning 2nd Disamatic 2110 moulding line.83bn (€189. 30 June 2007) in 2007.000 sq.3L Fiat Diesel engine production programs. Investments Amtek Group is on an expansion path increasing its existing installed capacity as well as setting up new units. 30 June 2007) in 2007. This facility includes forging. Amtek Auto is expanding its Bhiwadi (Haryana) foundry unit by commissioning a new HWS moulding line with box size 1200 X 1050 X 400 X 400. a joint-venture with Benda Kogyo Ltd (Japan). €m 189.83 66. for producing components up to 250 kg. Ahmednagar Forgings is expanding its forging facility at Pune (Maharashtra) by commissioning of 6.9 3202. INR m 12823. 30 June 2008).64 Net Profit.74 Outlook Amtek’s export focus has made it the largest precision machining company in the © SupplierBusiness Ltd 2009 82 . 30 June 2008) over INR11. The company’s net profit for 2008 was INR2.2% to INR12. Amtek Auto announced a new 12 acre green field machining facility to be established at Gurgaon (Haryana) with a covered area of 200. Amtek also has a technical collaboration with Aizen (Japan) for connecting rod assemblies.4 Operating profit.9 11957. spread over 55 acres. a decrease of 7.8 1612. Suzuki Powertrain and Tata Fiat mandated Amtek as the sole supplier of aluminum engine blocks for the 1.5 2183.000 ton forging presses. Cummins USA awarded Amtek with a contract for the supply of ring gears and assemblies for their heavy diesel engine manufacturing operations.6 Profit before tax. In 2005.24m.000 ton Ajax forging press line. Contracts IN 2007. It is also expanding its facility at Gurgaon (Haryana) by commissioning of 2 new Smeral 1. a decrease of 1.2bn (€55.18 Profit before tax. casting and machining operations.18m. € m 57.93m.43m.6% compared to INR3.86bn (€49. INR m 2630. € m 79. Amtek Auto’s sales grew 7.87 150.2 Net Profit. In the same year.54m. Amtek has established a new manufacturing facility at Sanaswadi.93 49. INR m 4381.63m (€47.5 2857. The results do not reflect the financial performance of other Amtek Group companies. €m 47. Financial Overview In the financial year ended 30 June 2008. Recently it has made various announcements regarding its expansion plans.47 Operating profit.54 217. Amtek has announced an increase in machining capacity at Dharuuhera (Haryana) and Baddi (Himachal Pradesh) plants.15bn (€57.57 8732. 30 June 2007) in 2007.7 3853.The Indian Supplier Report machined crankshafts for LCVs and farm tractors. However the current economic scenario will slow down Amtek’s export plans significantly. © SupplierBusiness Ltd 2009 83 . The company’s pace of acquisitions has also slowed down as it has been consolidating its operations.The Indian Supplier Report UK. Clutch Auto. engine cooling components and heat exchangers. hydraulic brakes. Eicher Motors…. Perfect Circle India: is the largest exporter of piston rings in India with 45% of the production being exported.. Pune. Mahindra & Mahindra. Chairman CS Patel. With an installed capacity of 6m facings a year at a manufacturing facility at Chennai. 1 Sri Aurobindo Marg. The company cater to the need of OEMs and the aftermarket with a manufacturing facility in Nashik (Maharashtra. piston rings and castings. Managing Director – Gabriel India Ltd. engine bearings.Spicer India PKSV Sagar. Ashok Leyland. Sandeep Balooja. Ashok Leland. France and America. Gujarat Setco.com Senior Officers Deep C Anand. Ashok Leyland. established in 1979. In India Anand Group supplies to Cummins India. gaskets.Automotive & Tractors. The company also has an Export oriented Unit for making high quality heat exchangers and tubular components. Perfect Circle domestic client list comprises of Maruti Suzuki. Luk India. The company supplies to OEMs like Mahindra & Mahindra. Senior Director. Cummins. car care products and coolants.anandgroupindia. development and production of air conditioning systems. pressure die castings and rubber parts. India) consisting of a casting plant and a piston ring manufacturing plant. COO.Haldex India Products Adhesives.Valeo Friction Materials India Ganesh Pai. Gabriel India is one of India’s largest manufacturers of shock absorbers and related ride control equipment and engine bearings. Eicher Motors. New Delhi . manufactures air filters and air filtration systems for gas turbines. CEO Deepak Chopra. drive shafts and universal joints.Mando Brake Systems India K Raghavan. COO. organic solvents.Chang Yun India S Sarathi. COO. Perfect Circle has a 100% Export oriented Unit for export of ductile (SG Iron) castings. Welset Engineers Behr India: was established in 1997 for the design. the Jodalli and Satara plants separate divisions catering to Dana. axles and propeller shafts. Maindra Sona. The Hosur facility is a 100% Export oriented Unit. Managing Director. Mahindra & Mahindra. struts and front forks and synchronizer rings Plants India (37) Sales US$634m (€401. Tata Motors. while exports are shipped to PSA Europe and other OEMs. TAFE. Mahindra & Mahindra.52m.110016 Anand Group is amongst India's leading manufacturers of automotive components and systems. The company exports to Toyota. GM. Ford. Satara and Hosur. Operations. Corporate Controller MS Shankar. instrument panel reinforcement assemblies and door side impact beams. The company operates four facilities. Force Motors. The company serves domestic and offshore client base from a plant at Chakan. International Tractors and Caterpillar India. Tata Cummins. The establishment also acts as a global sourcing office for Behr exporting parts like wiring harnesses. New Tel: +91 11 26564542 Fax: +91 11 26866040 Internet: http://www. Jay Hind Industries. an axle plant at Chakan and three drive shaft facilities at Jodalli (Karnataka). The company has plants at Banaglore and Chennai. The company supplies to Ford India.Anfilco Dr KJ Rao.Behr India JS Chung. In India the company supplies to Tata Motors. Hindustan Power Plus. GM. Spicer India: was established in 1993 for the production of axles. Automobile Products of India. gravity die castings. Tata Motors. catalytic convertors. Valeo Friction supplies to most OEMs through various clutch manufacturers like Amalgamations Valeo. The Jodalli plant undertakes component production while driveshaft assembly is done at Satara. The company derives nearly a fifth of its revenues from exports with total sales estimated at US$634m in 2007. Daimler Chrysler. Toyota. Anfilco Ltd. CFO & President KN Subramaniam. The company also exports to behr set ups in Germany.Henkel Teroson PKSV Sagar. air brake components. GM. Business Development Arvind Kumar. Founded in 1961.The Indian Supplier Report Anand Group Diverse range from engine parts to adhesives Address Anand Group. COO & Vice PresidentVictor Gaskets India Ltd. Ford. Victor Gaskets: supplies gaskets for automotive and non-automotive application in India from its plant in Pune. Caterpillar. rail locomotives and clean rooms. Daimler Chrysler. COO. Hind Auto. Simpsons & Co. COO.. shock absorbers. Renault. aramid fibre and ceramic fibre. for the production of exhaust muffler assemblies. Ceekay Daikin. Valeo Friction Materials India: was set up in 1997 for the production of waterbased clutch facings free from asbestos. HVAC components. Andhra Sinter. lead.03. sealants and coatings. Head.Emcon Technologies India Sunil Kaul. Additionally. Hino through Dana’s network. automotive filters. EGR parts. Emcon Technologies India: Established in 1997. Director. BD Singh. COO. exhaust systems.08) © SupplierBusiness Ltd 2009 84 . Chief Information Officer Charanjeet Singh. friction material. The company also manufactures castings. Amalgamations Repco. The group is a closely held setup of 14 companies: Gabriel India: is the flagship company of the Anand group. 31 March 2008) (Year to 31. Ashok Leyland. 5m rings per annum and supplies to Maruti Suzuki and Hyundai Motors. sealants and coatings. Sonalika. Greaves India. New Holland. Maruti. Mando Brake Systems has a technical license agreement with Continental Teves. Korea and Anand Automotive Systems. Haldex India has two facilities at Nashik and supplies to Ashok Leyland. GM. Force Motors. The company has a facility in Gurgaon with an installed capacity of 5. Eicher Motors.Australia. Behr India is a joint-venture between Behr. LML. Haldex India: was established in 1998 for the production of manual and automatic slack adjusters for air brakes of commercial vehicles. Maruti-Suzuki. Eicher Motors and Tata Motors. Fiat. TVS and Yamaha. USA and the Anand Group. Toyota. Mahindra & Mahindra. Escorts. Victor Gaskets India has a technical tie-up with Dana Corporation. 7. Joint-ventures Perfect Circle India is a joint-venture between Dana Corporation. Anand group comprises 18 companies. The company's major domestic clients include. HMT.500 (31 March 2008) Holland Tractors. Toyota Kirloskar Motors and Tata Motors. L&T John Deere. Tatra. Chang Yun India is a joint-venture between Chang Yun. Royal Enfield. UK and Iveco. Avtec. Germany and Anand Automotive Systems. Mando Brake Systems has recently added passenger car shock absorbers and struts to its product line. Mahindra & Mahindra and GM. Henkel Teroson India is a joint-venture between Anand Automotive Systems © SupplierBusiness Ltd 2009 85 . TAFE. The company has plants at Gurgaon. Mando Brake Systems India: was established in 1997 for the production of brake systems with a production facility at Chennai. GM. TVS Motors. Ford. Same Greeves. The company also exports to OEMs such as Lister Petter. where the market is growing. Emcon Technologies India Ltd is a 74:26 joint-venture between Emcon and Anand Automotive Systems. USA for non-asbestos gaskets. Holden Spare Parts Organisation. Punjab Tractors. India. Ford India. The company is eyeing converting its licenses into joint-ventures. Piaggio. Hindustan Motors. Group company. DaimlerChrysler. Germany. Mahindra & Mahindra. Chang Yun India: was established in 1992 as a manufacturer of synchroniser rings for automotive applications. Mando Brake Systems India is a joint-venture between Mando Corporation. Ford India. Mahle Filter Systems India is a joint-venture between Mahle Filtersysteme GmbH. John Deere. France. The company also exports to Haldex group companies globally. Mitsubishi. Pune and Chennai with supplies to Ford India. Hyundai. Japan for manufacturing products for Toyota. Ashok Leyland. spread across 13 locations with 37 manufacturing plants in the country. The company is also looking at strengthening its cooperation with its partners from high labour cost countries by transferring an increasing number of production technologies to India. Honda. Arvin Exhausts also has a technical license arrangement with Sango. Parwanoo. Tata Motors. Hero Motors. Italy and aftermarket operations of Clevite Engine Parts. Briggs & Stratton. USA and Anand Automotive Systems. Recent Developments Corporate strategy Anand Group is keen on increasing its share of business in the exports market and is targeting a 70:30 mix between domestic and export sales from the present 80:20 ratio. Germany and Anand Automotive Systems. Hindustan Motors. Swaraj Mazda. Lombardini India. The company supplies to Hyundai India. Hyundai India. Korea and Anand Automotive Systems. Valeo Friction Materials India is a joint-venture between the Anand Group and Valeo. Spicer India is a joint-venture between Dana Corporation. Henkel Teroson India: was established in 1997 for the production of adhesives.The Indian Supplier Report Employees c. Honda Siel. Spicer has an exclusive contract for axles and drive shafts for GM Tavera. The company is also the sole supplier to Fiat India.The Indian Supplier Report and Henkel Teroson GmbH. Mando supplies the front brake assembly. The company initially supplied 30.000 units. Mahle is the sole supplier of oil. UK. Perfect Circle supplies to PSA. Eicher Motors and Tata Motors. radiators and charge air coolers. Spicer India exports companion flanges. fuel and air filters to the Hyundai Santro program. Mahle Filter Systems supplies to all models of Maruti stable. Europe via Dana's supply network. Arvin Exhaust India is the single source supplier for the supply of muffler boxes to Arvin Meritor. The company is also engaged in the production of door side impact beams and instrument panel reinforcement tubes for Toyota Kirloskar Motors. Ltd. Mahle is the sole supplier of air filters to the Tata Indica program.2m half pressings per annum to Arvin Meritor. The company also supplies to the Toyota Innova. Arvin Exhaust India also supplies 0. The company has also been selected for supplies to the GM Chevrolet Aveo model. Chevrolet Tavera and Tata Ace programs. Mando also supplies front brake assembly for the Hyundai Accent program. Arvin Exhausts India commenced production at its Bangalore facility to cater to the requirements of Toyota Kirloskar Motors. Victor Gaskets supplies gaskets to Ashok Leyland for the Hino Engine program. Behr India is establishing a plant at Pune for the production of engine cooling systems like viscous coupling. Gabriel India won a contract to supply engine bearings to Suzuki Motorcycle India Pvt. The company also supplies exhaust systems to Ford India. rear brake assembly and master booster for the Hyundai Santro program. Arvin Exhaust India also supplies half pressings to Arvin Meritor. UK for the new Land Rover.88m. Mando supplies master booster to the Ford Fiesta program in India. Maharastra with a total investment of INR100m (€1. Spicer supplies front and rear axle for the Mahindra Scorpio and front axle to the Mahindra Bolero program. Arvin Exhaust has the contract for supply of front and tail assembly of the Toyota Innova program. Investments In January 2006. Haldex India supplies automatic brake adjusters to Ashok Leyland. In 2004. The company also supplies 45% requirement of filters for trucks in the Tata stable. © SupplierBusiness Ltd 2009 86 . condensers. Haldex India announced its plan to set up a Self-setting Automatic Brake Adjustor (S-ABA) manufacturing plant at Nasik. Spicer is the sole supplier of drive shafts and axles to Hindustan Motors RTV program. Behr India has been awarded supply contracts for the Renault Logan. Henkel Teroson has an additional technical agreement with Sunrise MSI. Sumo and 207 series vehicles. Mando Brake Systems is the sole supplier of master booster assembly and supplies front and rear brake assembly to the Hyundai Getz program in India. China. end yokes to Dana UK and USA. Spicer is the sole supplier of axles and driveshafts for the Ford Endeavour model. 31 January 2006). Contracts In November 2005. Arvin Exhaust supplies front assembly to the Ford Fiesta program. Arvin Exhaust India supplies exhaust systems to Toyota Kirloskar Motors.000 units which will eventually be scaled up to 50. Spicer is the sole supplier of axles and drive shafts for the Tata Safari. Spicer meets 60% requirements of Ashok Leyland for drive shaft requirements. Mahle is the sole supplier of filter systems to Hindustan Motors. Spicer is the sole supplier of drive shafts and axles to ICML Rhino program. differential cases. Valeo Friction Materials India is accredited with ISO/TS 16949. assembly and manufacturing of critical parts. the company has an R&D facility and a standards room. a liquid honing machine.49m. Perfect Circle has installed a Dimaco Cam-turning boring machine with a fully automated CNC profile grinder and a battery of computerized grinding machines. Outlook Anand group plans to reach sales of US$1. Anand Group. Henkel Teroson is a TS 16949 certified company. metallurgical laboratory and provision for deep thermal shock testing. 31 March 2007). Financial Overview Anand group’s sales for the financial year ended 31st March 2008 are estimated at US$634m (€401.The Indian Supplier Report Infrastructure Perfect Circle has an in-house product validation centre comprising of dynamometers covering engine speed range up to 150 HP. Certifications Mahle Filter System operated facilities are accredited with ISO/ TS 16949.ISO 18001 and QS 9000. © SupplierBusiness Ltd 2009 87 . Perfect Circle is accredited with TS 16949.52m. Victor Gaskets India has been accredited with TS 16949 & ISO 9001:2000 status. ISO 14001. Additionally. Mando Brake Systems has been accredited with ISO 14000 and TS 16949 status. The company expects to grow at 20%-25% CAGR in most of its businesses. ISO 14001 and OHSAS 18001 certified. 15 CNC turning centres. a multicone lapping machine at its Gurgaon facility. Chang Yun India has installed two high precision forging presses.3bn by 2010 and targets to increase revenue from exports from existing 17% to 20%-25%. Arvin Exhausts India is an TS 16949 and ISO 14001 company. Anand Group wishes to scale up the volumes in existing companies instead of getting into new components thus maintaining the same product mix until 2010. a privately held concern does not publish its detailed financial results. ISO 14001 and OHSAS certified. ISO 14001 and OHSAS 18001 status. Anand group is planning to restructure its manufacturing. 31 March 2008) growing 15% over previous year’s sales of US$550m (€412. This would include divestment of few non-core businesses in order to focus more on design. In order to overcome the increasing raw material costs. Arvin Exhaust India Ltd has been accredited with ISO 14001 and TS 16949 status. All Spicer India facilities are ISO/QS/TS 16949. Apollo Tyres started exports of tires for light commercial vehicles and farm equipment. Zimbabwe (2) Sales INR46. mining.91bn (€741. CFO Apollo Tyres is the world’s seventeenth largest and India’s second largest tire manufacturer. General Tire was acquired by Continental and subsequently Apollo Tyre strengthened its technical joint-venture with the German company. Currently. bus tyres account for more than 53% in sales in volumes and 78% in revenues of Apollo Tyres. 28 February 2006) for 100% equity. Dunlop Tyres has four plants in South Africa and Zimbabwe with a product range including bias and radial tyres for highend trucks and buses. 5. Truck.018 Fax: + 91 44 2625 7121 Internet: http://www.122 001 India Tel: + 91 124 2383 002 . Acquisitions In February 2006. CMD Neeraj Kanwar. Apollo Tyres’ operations began in 1977 with a plant in Perambra in Kerala producing truck and tractor tyres with technical assistance came from General Tire. Chief. It is also a dominant player in the passenger car segment and farm tire market. USA.9bn (€55. half of which are branded Apollo Tyre World. passenger car tires (9%) and others (31%). The company has announced a new greenfield facility in Chennai and a dedicated research unit in Europe to further itself in the European and Indian car tire market. farm. Apollo Tyres accounts for 18% of tire exports from India and is the third largest supplier to Africa with dominance in Egypt. In the domestic farm tractor tire market.000 dealerships. Projects & Corporate Affairs Satish Sharma. Kerala (2) South Africa (2). Apollo’s retreading initiative DuraTyre is the first initiative by a major tire manufacturer in this domain. COO US Oberoi. The company generates 78% of its revenues from commercial vehicle market while the rest is accounted for by passenger car market. India). light truck. In 2008. Apollo enjoyed a 15% share of the tubeless tyre market in India. In India. industrial. Apollo identified retreaded tyres as a critically untapped market segment. The company enjoys market leadership in the Heavy Commercial Vehicle (HCV). The company began supplies of radial tyres to Maruti Udyog in 1989 and also of premium truck tires the same year.com Senior Officers Onkar S Kanwar. Marketing Sunam Sarkar. Apollo Tyres has strengthened its presence in the passenger car tire market by adopting several strategies. Light Commercial Vehicle (LCV). In 1988 Apollo Tyres invested in its second plant based in Limda (Gujarat. In 2007. the third plant was set up in Ranjangaon (Maharashtra. 31 March 2008) Recent Developments Corporate strategy In recent years. this segment has largely been dominated by fragmented players across the country. The company has launched its Acelere Sportz range of tyres to increase its share to 20% by 2010. The company's production mix comprises of truck and bus tires (60%).14m. The company has a network of 7. The company expects annual sales of INR5bn from this segment by 2010 with an initial daily retreading capacity of 12. off road. Apollo's real strength is in the tire/bus segment where it accounts for a 23% share in the replacement market.22m. Products Tires Plants India: Gujarat.The Indian Supplier Report Apollo Tyres Tires Address Apollo Tyres Ltd Apollo House 7 Institutional Area Sector-32. Gurgaon Haryana. Apollo Tyres enjoys a 23% market share. In 1987. The company strengthened its focus on radial tires in 1994 and in 1995.000 units. passenger Employees c.apollotyres. Apollo Tyres acquired Dunlop Tyres International (South Africa and Zimbabwe) in an all cash deal worth INR2. Kenya and Tanzania. With economic liberalisation in the country. India) for the production of tubes and flaps. Chief Strategy & Business Operations Salil Gupta. Apollo owns more than 70% of its dealership network which help the company control retail sales. truck and bus segments.700 (2008) © SupplierBusiness Ltd 2009 88 . the Limda facility caters to the passenger car market. Chief. 08m.22m. The deal also gave Apollo Tyres a substantial shareholding in National Tyre Services (NTS). 31 March 2007) in the previous financial year. forming Michelin Apollo Tyre Pvt Ltd for the production of dual-branded truck and bus radial tires in India. Apollo Tyres has created a FEA (Finite Element Analysis) cell and is working on various projects that involve development of ultra high performance radial car tires. Investments In February 2008. The two players pledged an investment of US$ 75m in a ratio of 51:49.63bn (€73. Apollo Tyres announced its plans to establish a technology centre at Gyongyos. Dunlop exports to Europe. 31 March 2008) as compared to INR1. Central Asia. was heavily dependent on imported raw materials which foreign exchange crisis rendered unfeasible to import. Apollo Tyres diluted its holding in Apollo Finance and Apollo International.38% to INR2.7bn (€42.61m. Zimbabwe. Apollo Tyres recorded a 1. In 1998. Under the terms of the agreement. Dunlop International's Zimbabwe subsidiary was shut down in March 2006. The JV began with imports of radial tyres sourced from a Michelin plant in China. Gujarat to increase passenger car and light truck radial tire capacity to 0.3 million units per month and 0. In 2004. However in September 2005 Apollo exited the JV by selling its equity to Michelin. Hungary. Dunlop is also the sole distributor of Cooper Tyres in South Africa with a network of 230 dealers. 31 March 2008) as compared to INR47. A slower than expected rate of switch to radial tyres in commercial vehicles was cited as the reason for the exit. durability of tires and cost optimisation of existing products.9% decrease in sales to INR46. 31 March 2008) from INR4. 31 March 2007) in 2007.81bn (€825. Year Gross sales.000 units to 25. Australia and South America and has contract manufacturing tie-ups with major international players. Operating profit increased by 12.91bn (€741. Apollo Tyres commissioned its INR1bn expansion at Limda. Profit Before Net Profit. Operating Profit. Apollo Tyres plans to increase its farm tire output from 20. Apollo Tyres has developed the Acelere range which is the first full range of H-rated tubeless passenger radial tires in India.5 million units per month respectively. In 2005.72m. Michelin had agreed to provide technical assistance to Apollo Tyres for its passenger car radial program. Joint-ventures In 2003. Apollo Tyres announced the construction of a greenfield tire manufacturing unit at Chennai. Divestment In February 2006.09bn (€70. The deal also included a marketing of Michelin's passenger car tires through Apollo’s dealerships. Apollo Tyres had acquired the sick tire unit -Premier Tyres with a facility in Kerala (India). The net profit increased by 130. that has distribution and re-treading operations. from a holding of 71%. Apollo launched its premium Hawkz tires for the SUV market. due to the foreign exchange crisis. Apollo entered into an alliance with Michelin.28% of the sales.22m.The Indian Supplier Report cars.77m.86% to INR4. 31 March 2007) in 2007. Apollo Tyres decided to hive-off its tubes division.000 units per month. New Product Developments To strengthen its R&D capabilities. In 2007.17bn (€20. The company plans to market these tires in the domestic and the export markets. However the company withdrew its proposal citing clearance delays. In December 2005. Financial Overview In the financial year ended 31 March 2008. Apollo Tyres incurred R&D expenditure which amounted to 0. © SupplierBusiness Ltd 2009 89 . In January 2008. which had 75% market share. In 1995. Apollo Tyres offloaded 25% stake in Premier Tyres. The subsidiary. 97 13.239.11 2. Apollo Tyres acquired a significant manufacturing and marketing footprint and a market access point to the African continent.The Indian Supplier Report 2008 2007 2006 2005 2004 INRbn 46.30 INRm 2. Apollo Tyres is the first for major tire manufacturer to enter the fragmented retreading market for commercial vehicle tires in India. €m 42.26 432.72 1.675.70 676.91 18.36 47.49 1.696.89 1. giving the company a first mover’s advantage.22 14.68 31.22 825.30 704.912. €m 741.15 Outlook With the acquisition of Dunlop in South Africa. In the domestic market.08 70.568.098.005.170. But the adverse economic conditions in Zimbabwe is unlikely to improve hence its business in the country is not expected to improve.10 1.021.40 1.70 849.61 20.31 Operating Profit.99 470.625. © SupplierBusiness Ltd 2009 90 .00 4.69 32.72 558.64 781.80 Tax. €m 64.846.963. INRbn 4.20 1.66 Net Profit.20 26.56 11. Additionally. Apollo has realised the growth potential of the passenger car segment and an opportunity in the retreading market.10 23.03 19.77 41.30 Profit Before Tax.143.00 INR bn 4.052. Apollo is increasing its production capacity of car tires by setting up a greenfield unit in Chennai.73 15.20 Year 2008 2007 2006 2005 2004 Gross sales.052.03 33. €m 73.15 30.812. Tata Motors. Haryana (1) Sales Group: INR9. tempered glasses. The plants can be further upgraded to produce 1. Ford India and Hyundai India (until recently) source glazing from Asahi India as a single-source vendor. Aftermarket business contributes 16% of company's automotive sales.000 tempered glass sets annually. Mahindra & Mahindra.96bn (€160. Maruti.The Indian Supplier Report Asahi India Glass Automotive safety glass Address Asahi India Glass Ltd. The company accounts for 13% of its sales as replacement glass sold to OEMs and in the aftermarket. Tel: 91 124 5062212-19 Fax: 91 124 5062244/88 Internet: http://www. Joint-ventures Asahi India has a technical and financial tie up with Asahi industries.02m.20m.12. Reva Electric Car Company. Asahi began supplying to new customers to partly reduce it dependence on Maruti. The company expects to double its direct glass exports by 2010. Chairman Sanjay Labroo. 700 (31.12. Fiat India. Plants Automotive: Chennai (1).asahiindia.5 million laminated windshields and 500. Asahi India supplies to all major vehicle manufacturers in the country. The merged entity of Floatglass India was then converted into the float glass division. Swaraj Mazda. Asahi India Glass was incorporated as Indian Auto Safety Glass Ltd in 1983 for the manufacture of toughened glass for solar panels and televisions.03. Hindustan Motors. Director and COO (Automotive) Products Laminated windshields. Asahi India has also emerged as the lowest cost producer of safety glass in the Asahi network spanning 35 countries worldwide. Maruti continues to be Asahi India's largest customer with a 29% share of its automotive sales followed by Hyundai (13%) and Tata Motors (10%). Ford India. The automotive segment accounted for 52% of Asahi India's sales in 2007. 31 March 2007) (Year to 31. 5th Floor. Acquisitions In 2003.7bn (€90. Japan. Gurgaon – 122 002 Asahi India glass is India's largest manufacturer of automotive safety glass. Asahi India's flagship facility in Rewari (Haryana) has an installed capacity of 500. Managing Director and CEO Arvind Singh. Today it is a threeway joint-venture between Maruti Udyog (11. With an 86% market share.08) Automotive: INR5.08) Recent Developments Corpporate Strategy In recent years Asahi has pursued an aggressive growth strategy to maintain its dominance over the Indian market and further establish itself as an integrated glass solutions company with an increasing base of value aaded products. as sales of Maruti grew and as its product range increased.com Senior Officers BM Labroo. © SupplierBusiness Ltd 2009 91 . Nearly 5% of the production is used to meet export demands. With the commencement of its Chennai facility Asahi India has been able to leverage lower logistics costs and a manufacturing base in a cluster swiftly developing as an export hub. Maruti. Asahi India glass was merged with Floatglass India. defogger glasses. 31 March 2008) (Year to 31.21%) and BM Labroo & Associates (22.08) Employees c. Tower-B.000 tempered sidelights per annum and the newlybuilt Chennai (Tamil Nadu) facility has a capacity of 1. Asahi India has interests in architectural glass business through a separate entity called Asahi Glass Solutions. Besides automotive business. Hyundai India. Asahi India enjoys wide customer base which includes Eicher.2 million sidelights per annum.11%).21%). Mehrauli Gurgaon Road.000 windshields and 400. In 1993. encapsulated glasses and sub-assembled glasses. GM India. Global Business Park. Honda Siel. It was roughly the same time when Asahi made its first export. Asahi Industries (Japan) (22. Toyota Kirloskar and Volvo India. The company underwent major capacity expansions for automotive glass through the nineties. Asahi is now increasing its presence in the commercial vehicle segment which it expects to contribute 8-9% to its sales revenues. The company has also established a strong hold in the domestic aftermarket where it presently commands a 45% market share. In 2007. Asahi India commenced supplies to Hyundai Verna program.5m (€11. mirror. The company faced a strong increase in input prices due to supply constraints and aggressive © SupplierBusiness Ltd 2009 92 . SX4 and A-Star. Asahi India Glass commissioned its second automotive glass unit in Chennai (India) with an initial capacity of 500. In 2007. 31 March 2008) as compared to INR8. Also in 2007. 28 February 2005).25m. Asahi installed CNC drilling machines.5 million laminated windshields and one million tempered car sets. further investments are expected with expansions. Toyota.66m. The entire setup was established at a cost of INR500m(€8. Asahi decided to add 10 acres of land to its flagship facility in Rewari. Asahi India commenced supplies to Maruti Suzuki Zen Estilo program. In 2005. 31 March 2007) in 2007. Also in 2007. In 2007. Asahi India Glass commissioned its single largest integrated glass plant in Roorkee. Swift Dzire. In 2007. Asahi India made a capacity expansion at its Rewari plant catering to the automotive tempered glass market. In 2005. The automotive safety glass unit is scheduled for commissioning in the last quarter of 2007. 31 December 2004). Endeavour Hyundai i10 GM Chevrolet Optra. GM. Fiesta. In 2007. 31 March 2008) as against INR430. Honda Accord and Honda City Hyundai Santro Xing Mahindra Bolero Invader Maruti Zen Estilo.03% in 2008 to INR77. 31 March 2008) as against INR651. Piaggio Ape New Product Developments In 2007.38bn (€152.22m.96bn (€160.20m.000 laminated windshields. Financial Overview In the financial year ended 31 March 2008.4m (€2.8m (€7. The facility has an installed capacity of 700 tons per day for float glass. Asahi India supplies to the following programs: Ford Ikon. Swift. Asahi India bagged a supply contract worth US$5m through Asahi’s global network.The Indian Supplier Report Investments In January 2007.40m (€1. in 2007.8% increase in consolidated sales to INR9. Ford. Asahi developed reflective (PET) windshield for overseas markets. Asahi India commenced supplies to Maruti Suzuki SX 4 program. automotive safety glass and architectural processed glass. Asahi India Glass reported 12. Asahi started supplying automotive glass to Maruti Udyog for the Swift. Asahi installed a new laminated bending facility for the production of complex laminated windshields. HM and Volvo. 31 March 2007) in previous financial year. Maruti accounts for nearly a third of Asahi’s sales.22m. The new plant is also used as an export hub. The company's pre-tax profit decreased by 78.44m. 31 March 2007). In February 2005. In 2001. Alto. Asahi India commenced supplies to Honda Civic program. The new plant shall cater to Hyundai. Further capacity expansions are expected to take the plant capacity up to 1. CAD station and in-house design cum manufacturing facilities for certain key processes. Uttaranchal (India) at a cost of INR6bn (€100. Also in 2001. In 2005. Asahi India developed solar control glass for an OE customer. reflective glass. Contracts Asahi supports its South India and exports demand through its newly built Chennai plant along with the flagship facility in Gurgaon. Asahi India commenced supplies to General Motors Aveo-UVA program. Asahi is the sole vendor to Maruti. Asahi developed glass for Swaraj Mazda Isuzu bus project.50m.71m. In 2005.44% to INR140. Net profit also increased by 82. 01 717.84 24.01bn (€88.14 119.20 152. € m 1.76 5.83 6.44 16.50 127.99 1.08m.3% to INR5. INR bn 9. INR m 140.The Indian Supplier Report speculation in input commodities.29 1.96 8. The company will soon realise logistical and operational benefits from its three plants spread across three automotive clusters in India. Asahi India faces high cost pressures which have reduced its profit margins drastically on the float glass side of business.21 1.66 1.62 782.69 22.49 2008 2007 2006 2005 2004 Year Gross sales.85 13.40 651.8 862. © SupplierBusiness Ltd 2009 93 .06m. € m 0.5 1038.69 105. At the moment.40 2008 2007 2006 2005 2004 Outlook Automobile production in India is expected to double in six years.10 14.73 Operating profit.61 Net Profit. INR bn 0. INR m 77. €m 160. €m 2. sales increased by 12.34 15.7 852.22 11.31 Profit before tax.7bn (€90.22 7.02 28.47 Profit before tax.25 19.65 782. 31 March 2007) in previous financial year. 31 March 2008) as compared to INR5.27 Net Profit. Year Gross sales.66 Operating profit. In the Automotive Glass division.06 13.52 22.83 6.40 430. which places Asahi India in a comfortable position in the long term as there is no major competition in the country at the moment. Senior Manager.100 people. Sales c. Products Brake drums. flywheels. Ashok Iron Works’ estimated sales were US$38. Over the last few years.05) Outlook Over the last three decades since its incorporation in 1974. Ashok Iron Works has developed into one of the most well-known players in jobbing foundries. gearbox housings Plants Karnataka (2) Financial Overview In the financial year ended 31 March 2005. Majgaon Road.8m. Deutz and Lister Petter. 31 December 2005).6m (€2. Manager. Manager. 31 March 2005). India) and employs 1. Tel: +91 831 2442 599 Fax: +91 831 2441 899 Internet: http:// www. In the domestic market. Investment Ashok Iron Works is setting up a new manufacturing facility for forging. Marketing Gurunath Tendulkar Manager. Uyambag. Escort.100 (2005) © SupplierBusiness Ltd 2009 94 . the company’s exports was US$3. cylinder blocks and cylinder heads and housings. 31 March 2005) (Year to 31. the melting capacity of the new plant would be 100 tonnes per day which would further be increased to 200 tonnes per day. (€29. CEO. the company has increased its focus on exports which now account for approximately 10% of total sales of the company. Belgaum 590008 Karnataka India Ashok Iron Works is supplier of brake drums. crankcases. Same Deutz and Tata Motors. fly wheel housings and wheel hubs Address Ashok Iron Works Pvt Ltd. cylinder heads. Bharat Earth Movers. Eicher Tractors.ashokiron. US$38. cylinder blocks. Development Recent Developments Corporate Strategy Ashok Iron Works is expanding its production capacity and is setting up a new manufacturing plant. The company is a private limited company and is under no obligation to publish its financial details. Ashok Iron Works was set up in 1974 in Belgaum (Karnataka). Cummins India. crank cases and crank shafts. Foundry Jayraman. casings. Chairman V S Katkar. Export C Radhakrishnan. Mahindra & Mahindra. main customers of the company include Ashok Leyland. Ashok Iron Works has two manufacturing plants in Belgaum (Karnataka. In the same period.8m. the company supplies to Bitzer. Certificates Ashok Iron Works plant has been certified with ISO 9000 status. General Manager Quality R D Ganesan. The company supplies to domestic as well as international customers.The Indian Supplier Report Ashok Iron Works Brake drums. Employees 1. crankshafts.5m (€29. In the first phase. In the overseas market. The company is enhancing its capacity by setting up a new plant. This would help the company in further strengthening its position in forgings segment in India and in increasing exports. The plant would manufacture components for auto and diesel engine parts.03. Director &Vice President K Dhayalan.com Senior Officers Ashok Humberwadi.8m.5m. Mahindra & Mahindra. Aprillia. Ltd: Produces die-castings. Minda SAI Products Minda SAI: Connectors. Supra Industries and Triumph among others. Escorts Tractors. couplers.co. Wiring harnesses account for 80% of sales. Company has set high export targets for itself with a greater composition in group sales. Sector-59. wiring harness. steering column lock and modules. The company has grown at a rate of 80% in the last three years. SM Technocast: Zinc die casted components The group has a wide base of clients comprising domestic OEM’s such as Ashok Leyland. Kinetic Motor Company.minda. a subsidiary of Valeo. Sandan Vikas. The company also serves the aftermarket. Kinetic Engineering. It operates five plants India-wide. wiring sets Minda Huf: Alarms. Monto Motors. PT Minda ASEAN Automotive: is a new company set up in Indonesia to serve two wheeler manufacturers in the ASEAN region. The concluding 5% is generated by components. door handles.The Indian Supplier Report Ashok Minda Group Driver information & security systems and Wiring harness Address Minda Huf Limited. followed by four-wheeler locksets in 1994. Fiat Auto. Company’s international clients include Creo Products.in Address Minda SAI Limited. the company was acquired in April 2003 with the aim of diversifying into the wiring harness business. VST Tillers & Tract and Yamaha Motor India. Recent Developments Corporate strategy The Ashok Minda Group has been aggressively expanding in Europe and the ASEAN region through its subsidiaries in Europe and Indonesia and has been actively tying up with international players. Subros. Tel: +91 120 2580 249/ 250/ 252 Fax: +91 120 2580 247 Internet: http://www. Minda Huf Ltd: Is a leading supplier of locking systems in India and the Group’s flagship company. Sundaram Motors. remote control systems. fuel gauge. immobiliser systems. wiring harnesses. Piaggio Vehicles. Lotus Cars.co. Minda’s tier-1 customers include domestic clients like Denso.201301 Uttar Pradesh India The Ashok Minda Group is a leader in its segment and enjoys major market share in some of its products. glove box locks/ latches. Minda Huf Ashok Minda. Hindustan Motors. terminals and instrument clusters for almost all major two and four wheeler vehicles manufactured in India.minda. New Holland. LML (Components). Honda Motor Cycle & Scooter India. Reva Electric Car Company. is a leading supplier of mechanical instrument clusters. as Sylea Automotive (India) Ltd. The Ashok Minda Group is structured into the following companies: Minda SAI: Initially established in 1995. Same Greaves Tractors. Minda Huf MK Pajan. Ltd: Is a manufacturer of sub-assemblies.201305 Uttar Pradesh India Tel: +91 120 2567 664/ 665 Fax: +91 120 2567 326 Internet: http://www. temperature gauge. indicators. sensors. SM Technocast Pvt. Hoisery Complex Phase II Extension Noida. Hero Motors. remote operated immobilisers. International Tractors. odometers. Minda Huf Ltd. Nippon Audiotronix. President.20& 21. Eicher Motors. Peugeot. Harteveld Automaterialen BV. is the flagship company of the Ashok Minda group which started commercial production of two-wheeler locks in 1989. Siemens VDO. The company also derives some revenue from non-automotive white goods businesses. Indo Farm Tractors. Minda Stoneridge: Earlier known as the Minda Instruments. Managing Director. © SupplierBusiness Ltd 2009 95 . Mindarika. while wire sets account for 15% of sales. a joint-venture with Huf Hulsbeck und Furst GmbH of Germany. Mayank Auto Pvt. couplers. Noida. Minda Huf Europe BV: Is a European subsidiary supplying security systems. lock sets. locking/ latching systems. Minda Huf NK Taneja. D-6-11. TVS Motors. fuel tank locks. Managing Director. crimps. castings and moldings in Europe. B. The group manufactures security systems..in Senior Officers U Hulsbeck. trunk locks/ latches Minda Stoneridge: Speedometers. door handles. Chairman. L & T Case Equipments. terminals. Piaggio. handles. In December 2006. Maharashtra (2) Minda Stoneridge: Maharashtra Minda SM Technocast: Uttar Pradesh Domestically. In February 2004. Mauritius.59m. In principle. earth movers and construction equipments in the European market. Joint-ventures In August 2007. Investments In January 2005. Singapore. Madhya Pradesh Uttar Pradesh Minda Huf: Uttar Pradesh. The new facility caters to the growing requirements of Minda Huf’s clients in India’s western region. Thailand. received exclusive manufacturing and marketing rights for India and 17 Asian countries.the A K Minda Group announced a joint venture with The Furukawa Electric Co Ltd. established a European subsidiary. engine immobilizers. Minda Stoneridge.The Indian Supplier Report Plants Minda SAI: Tamil Nadu. tractors. Japan (Furukawa Group). remote keyless entry systems. namely. through the new set up. including sensors. Maldives. the A K Minda Group entered into a 50:50 joint venture with the security systems branch of Valeo. Schenk is a major supplier to Daimler with the carmaker accounting for 60% of the supplier’s sales. 28 February 2004).0bn Employees 3500 (November 2008) © SupplierBusiness Ltd 2009 96 . the A K Minda group entered into a joint venture with Silca. The new company acts as a logistics facility to existing European clients for just-in-time deliveries. (USA). strikers. actuators etc. The new company was named as Minda Silca Engineering Ltd. Minda Huf Ltd. In accordance to the agreement made between the two companies. Sylea Automotive (India). Indonesia. Minda Huf announced the setting up of a new facility in Pune. In August 2004. Sales c INR11. produce and sell the entire range of Valeo Security Systems products including locksets. The joint-venture is expected to achieve a turnover of US$20m by 2007-08. In 2003. claims the manufacturer. Bangladesh. castings and mouldings. Valeo continues to provide technical know how to Minda. The total capital investment on the new facility was INR250m (€4. Pakistan. Philippines. Both partners hold 50% share each in the new company with a plan to invest INR500m (€8. 31 December 2006) over the next three years. latches.. The company is also chalking out plans to add other product lines of Stoneridge Inc.. The company has a patented ‘skinform’ technology which produces high-value interior surfaces at a lower cost than previously possible. passive entry. Minda Huf intends to derive €20m in sales from the new venture by 2007-08. Stoneridge Inc. The joint venture will be a 51: 49 partnership and the new company has been named as Minda Furukawa Electric Pvt. Minda Huf Europe BV with operations in Breda (Netherlands). Daman & Diu. Further. Minda Huf is targeting new segments like commercial vehicles. Acquisitions In June 2008. PT Minda ASEAN is a joint-venture between the Ashok Minda Group and the NK Minda Group with a manufacturing presence in Indonesia. Cambodia. Ltd. recreational vehicles. bought a 49% stake in Minda Instruments over a period of three years. which will also be introduced into the joint-venture. Brunei. the rechristened entity. Schenk is a leading supplier of plastic parts and components for the automotive and technical parts industries with plants in Esslingen and Bretten in Germany and Liberec in Czech Republic. the world’s largest manufacturer of keys. At the same time the company is targeting new clients. Maharashtra. steering column locks.Malaysia. Moreover the company has an arrangement for buy-back with Stoneridge. Nepal and Sri Lanka. door handles. the company is growing well. Vietnam.. The company supplies mechanical and electronic security systems.43m. Schenk has annual sales of €75m with 500 employees. To further its growth Ashok Minda Group has aggressively diversified its product range by acquiring Valeo’s wiring harness subsidiary in India and then by forming a joint-venture with Stoneridge for instrument clusters. Burma. Laos. The joint-venture plant will be located at Pune near Mumbai and will develop. and Furukawa Automotive Parts Inc. Valeo also agreed to source some of its requirements from the company. start systems and power closure systems. The Indonesia based facility commenced production in end 2005. In May 2007. the Ashok Minda Group acquired interior component supplier Schenk Plastic Solutions in Germany. (MFEP). to produce and market keys and key duplicating machines for the Indian and international markets. the company acquired Valeo’s wiring harness arm. Suzuki.46% of its total sales. © SupplierBusiness Ltd 2009 97 . The lock also contains Plug ‘n’ Play wiring harness. introduced the Indilock. Minda Stoneridge has been chosen as the single global source supplier for the Piaggio NQP World Van. Indilock contains features like waterproof remote control. The system comes with a panic alarm system and theft attempt detection. Italy. MHL supplies locksets to DaimlerChrysler (Germany). New Product Developments During the financial year 2005. MHL is the single source supplier for the Fiat Siena and the Palio.407/709. In December 2003. MHL is the single source supplier to Force Motors for the Trax and the Traveller. MHL supplies locksets to Aprillia. which checks unwarranted access into the car. MHL commenced production of Indilock. Yamaha. MHL supplies locksets and electronic security systems for two-wheeler and four-wheeler applications to Piaggio (Italy). Minda Huf incurred R&D expenditure amounting to 1.The Indian Supplier Report Contracts MHL is the sole supplier to the Ford Ikon. Indonesia. Derby. MHL is the single source supplier for the Tata Indica and Safari. Yamaha-MBK. 31 March 2008) Outlook The Ashok Minda Group has been strategising well keeping its core competencies in mind and is among the few auto components group in India which has seen high growth in several business areas such as clientele. France. Further the system has a secret code for emergency. Peugeot. manual central locking and unlocking and code hopping technology. MHL has a 40% share of business of Maruti Omni and the 800. and Suzuki. MHL has the contract to supply locksets to Triumph (UK). France. Spain. The company supplies transponder immobiliser locksets to Ford in Mexico and South Africa. the group has to bear in mind to raise technological levels in some of its products. Minda Huf Ltd. Financial Overview Most of the units of the Ashok Minda group are privatelyheld and financials are not disclosed. However. among others. developed for Tata Motors. Minda Stoneridge is the single source supplier to Tata Motors for the Sumo and the LCV. The group indicated that it was targeting a turnover of INR11bn (€170m. for supplies to Tata Motors. Thailand for two-wheeler applications. In December 2003. production base. MHL is the single source supplier for the Opel Corsa. an advanced central car locking security system. Spain. Yamaha. the engine immobiliser can be deactivated and the car can be started even without the remote. MHL supplies locksets to Cobo (Italy) for LCVs. Spain. MHL is the single source supplier for the Mahindra & Mahindra Scorpio and has 70% of the business share as a supplier to the model Bolero. in case the user looses the remote. Minda Stoneridge is the single source supplier to Escorts for Farm Trac and Power Trac. separate locking for driver door. Minda Stoneridge is the single source supplier to Mahindra & Mahindra for the regular tractor. the company manufactures aftermarket replacement components catering for parts manufactured by leading suppliers such as Bosch.4m.6bn (€25. starter motors Address Auto Ignition Ltd. Delco Remy. Plot No. Quality Assurance B K Gupta. armatures.6bn (€25. In 2008. Punjab Tractors. solenoid.The Indian Supplier Report Auto Ignition Alternators. Ignition coils.67bn (€28. Lucas. autolek. company’s export will continue to constitute the major portion of its business. Magneti Marelli. HMT. drives. Preet Tractors. Senior Manager. Vice President. © SupplierBusiness Ltd 2009 98 .03. Products Alternators. 31 March 2007) in 2007. ignition coils. Faridabad -121 006. India) Sales INR 1. Tata Motors. President & CEO R K Sarine. Escorts. starter motors. The company started its operation in 1972. In 2008. voltage regulators Plants Faridabad. 1. (Haryana. dynamos. Export D Dey. 31 March 2008) (Year to 31. Force Motors. Sonalika Tractors. exports accounted for 40% of total sales of the company. Vice President. India Auto Ignition is supplier of alternators. Tractors & Farm Equipment. The company exports its products to Australia. Managing Director Sanjeev Rahi. Standard Tractors. 625 (31 March 2008) Outlook Auto Ignition has identified its niche in the global aftermarket for electrical components. Mathura Road. 19/6. The company has good presence worldwide with leading suppliers as customers. Europe. Tatra Trucks. The diverse customer base of the company includes Eicher Tractors. R&D S N Chakraborty. generators. Going forward. Haryana.com Senior Officers L V Buran.08) Financial Overview In the financial year ended 31 March 2008.8m. In addition.4m. starter motors and voltage regulators to the domestic automotive sector and to overseas aftermarket. Vice President Recent Developments Corporate strategy In recent years. ignition coils. Employees c. Vice President. Auto Ignition supplies mostly to tractor and commercial engine manufacturers in India. 31 March 2008). Lombardini. North and South America and South Africa. The company plans to continue its focus on exports to the aftermarket where profit margins are better. Auto Ignition has been intensifying exports with about 40% of company’s sales derived from overseas. and Nippon Denso. The company also supplies to Prestolite of the UK. Middle East. Auto Ignition is also one of the leading exporters of auto electrical parts from India. exports formed 40% of the company’s total sales. Certifications Auto Ignition's plant has been certified with QS 9000 from BSI (UK) Auto Ignition plants is also certified with ISO 9002 and TS16949:2002 through TUV GmbH Germany. Tel: +91 129 4003 291 Fax: +91 129 4003 293 Internet: http:// www. Auto Ignition's estimated sales were INR 1. Mahindra & Mahindra. Maruti Udyog. Sales Satish Kapoor. declining marginally from INR1. The company has a diverse product range in the electrical area. Bangalore 560 048. the company does not disclose detailed financials.17m. The company also supplies to Autoliv in China Tel: +91 80 2852 4017 Fax: +91 80 2852 4185 Internet: http://www. Autoliv India’s test center is capable of carrying out body in white tests for automotive manufacturers. Off White Field Road. Currently. Tata Johnson Controls.99m. Solid Works for 3D Modeling & Mould Flow & Finite Element Analysis in designing. Karnataka India Since October 2007. Eicher Motors. Force Motors. Escorts JCB.99m. load limiters. Mahadeva Pura. 31 December 2005) during the period.04) Employees 340 (2005) Financial Overview In financial year 2004. shoulder height adjusters Recent Developments Corporate strategy Autoliv India gets constant access to latest technology for occupant safety systems from global leader Autoliv. The company manufactures airbags. © SupplierBusiness Ltd 2009 99 . Autoliv India’s designing facility also carries out simulation work in occupant safety areas using multi-body dynamics software. The company uses software including Catia. buckles. the exports of the company are below 1% of its sales but it is working on increasing its overseas earnings. Autoliv IFB India operates two plants and employs 340 people.23m (€0. Certificates Autoliv India has been certified ISO/TS 16949 Quality Management System by TUV-Suddeutschland. Infrastructure Autoliv India has a design facility which is equipped with facilities for 3D Modeling. 1st Main Roda. Autoliv IFB India was a joint-venture between IFB Automotive Seating System and Autoliv AB of Sweden. Maruti Udyog.com Senior Officers V Raghu. Plants Karnataka. No. effectively making it a fully owned subsidiary and renaming the company as Autoliv India.12. The company also reported export sales of US$0. 31 December 2004). Hyundai Motor India. Ford India. child-restraint system and seat belts. Its customers include Ashok Leyland. West Bengal Sales US$27. The company is currently working on increasing the indigenous content of its products under development at its R&D centre to make them cost effective for the domestic market. 16 Visveshwariah Industrial Estate. President & CEO Products Airbags. Being privately held. Hindustan Motors. Peugeot. seat belts. buckles. The company has stated that it is working on developing a very low cost airbag system for the Tata Nano. Autoliv India sales were estimated at US$27. Autoliv IFB has been a fully owned subsidiary of Autoliv.2m (€19. Mahindra & Mahindra. In October 2007 Autoliv acquired IFB’s 50.2m (€19. Autoliv India’s test laboratory has the facility to carry out simulated Sled Tests using a Calibrated Test Dummy. Autoliv India has a wide customer base in India and meets half of the requirements of the industry. Hanil Lear India. The company is the market leader in automotive safety systems in the country with around 50% market share.01% stake in the company. General Motors India. DaimlerChrysler. belt retractors. Math modeling and Analysis. The test centre also carries out Durability Tests and Reliability Studies for seat belts and buckle systems.The Indian Supplier Report Autoliv IFB Automotive safety system Address Autoliv IFB India Pvt Ltd. child restraint systems. This has helped the company in obtaining half the share of the domestic market. Toyota Kirloskar Motors and Volvo India.autolivifbindia. Tata Motors. Joint-ventures Autoliv India has technical and financial collaboration with Autoliv AB of Sweden. The company started its operation in 1994. 31 December 2004) (Year to 31. The Indian Supplier Report Outlook Automotive safety is an increasing concern worldwide and the Indian automobile industry is not insulated from the issue. With a broad product profile in safety systems and a 50% market share in the domestic market. is positioned to grow with the buoyant automobile market and the potential for exports. The company is in position to access new products to retain its market share and provide engineering services to grow its synergies with Autoliv. Autoliv IFB India. safety systems content per vehicle is likely to increase. In the future. © SupplierBusiness Ltd 2009 100 . India Automotive Stampings & Assemblies Limited (ASAL) is a subsidiary of Tata AutoComp Systems Group. Mahindra & Mahindra. assemblies. 31 March 2008) (Year to 31. Kinetic Engineering. ASAL manufactures sheet metal components such as skin panels and body in white parts. as a developer of tools.01bn (€47. JBM Tools adopted a new identity in 2003 and was renamed Automotive Stampings & Assemblies Limited. the company added a second unit in Pune. ASAL is working towards bringing down Tata’s share of its revenue pie to 50% by 2009. fuel tanks and oil sumps). Acquisitions Tata Autocomp Systems acquired ASAL in 2003. ASAL’s customer list includes Fiat. inner bonnet frame. ASAL is partnering with OEMs entering the Pune cluster to win business at an early stage from new entrants. COO Sanjay Arora. The company entered into a jointventure with Tata Motors in 1995 and in the following year it added paint and weld shops and a fresh set of presses purchased from GM. 590 (Year to 31 March 2008) © SupplierBusiness Ltd 2009 101 . Plants Halol (1). Spain has proposed to join ASAL as an equal equity partner along with TACO Group. MIDC Industrial Area. Head. Tel: + 91 20 27123725/1099/1500/1677 Fax: +91 20 27123147 Internet: http://www. Contracts ASAL has a large customer base which includes Tata Motors (Body-in-white parts. CV sector skin panels.71/2. Having diversified its operations. ASAL is currently the only listed company in the TACO stable. ASAL is adding greater value added products to its portfolio which require a greater degree of engineering skill like chassis. Tata Motors and Trelleborg Germany. This will help ASAL reduce its dependence on Tata Motors which at present accounts for 68% of the company’s revenues. The company was incorporated as JBM Tools in 1990.03. dies and moulds for automotive OEMs and others. Subsequently. Gujrat. one each in Bhosari and Chakan and a plant in Halol. outer bonnet skin. Fiat (Skin and body-in-white components).80m.8% of the share capital of the company raising TACO's stake to 81%. inner door frames. Investments ASAL has undertaken a capacity expansion program at its Chakan facility.com Senior Officers DS Gupta.autostampings. Pune 411 026. ASAL is also investing in setting up a new plant at Pant Nagar. Recent Developments Corporate strategy Augmenting product portfolio and expanding into propriety design offerings has been a key focus for ASAL. Marketing Products Outer door skin panels. CEO Anshuman Dev.08) Employees c.The Indian Supplier Report Automotive Stampings & Assemblies Limited Sheet metal components Address Automotive Stampings & Assemblies Limited. L&TJohn Deere. tractor fender assembly. Tata Autocomp Systems Limited (TACO) bought 48. Pune (2) Sales INR3. Piaggio. three wheeler skin panels and wheel housings. which shall increase its installed capacity by 22%. Maharashtra. outer side door frame. Recently Gestamp Automoción. The company operates two plants in Pune. GM. USA. ASAL is working on repositioning itself as a solution provider by associating itself with OEMs at early design stages. The entry of Gestamp in this regard will provide ASAL access to intellectual property which would help ASAL fetch better margins. G. In 2000. Chairman S Nagaraju. John Deere. 87m. door inner panel and rear inner panel for the TataMobile pick-up.19 131. India).69bn (€63. ASAL also supplies the rear quarter glass. 1000 ton double action press at Bhosari (Pune.69 3.20 2008 2007 2006 2005 2004 © SupplierBusiness Ltd 2009 102 .92 2. a drop of 18. Profit before tax. Maharashtra.01bn (€47. GM India (Body-in-white parts and assemblies). Its export clients are John Deere USA (steering yoke assembly) and Trelleborg in Germany (engine mounting brackets).96m (€0. Maharashtra. India). 31 March 2007) in 2007. Maharashtra.74m. India). bonnet . Spot welding facility at Chakan (Pune.70 Net Profit. India).26 2. INR m 65.31m (€1. cross member. 600 ton single action press at Bhosari (Pune. Year Gross sales.01 3. Seam welding for oil sumps. The company supplies cover tail lamp for the Mahindra & Mahindra tractors. Maharashtra. Volvo India (exhaust systems) and Kinetic Engineering as its key customers. India). ASAL supplies side panel. front mudguard. Maharashtra. For the Fiat Palio in India. India) and Halol (Gujarat.45 40.31 46. rear door panel. Maharashtra.97 300.18 73. The company also supplies support console for L&T John Deere tractor. longitudinal rear. front door panel.02% owing to lower sales. Maharashtra. Maharashtra. 31 March 2008) in 2008 compared to INR3. Certification ASAL has been accredited to ISO/TS 16949 and ISO 14001 certification.85 65. India) Welding facility for cross member Leak testing facility at Bhosari (Pune. top shell for fuel tank. Maharashtra.91 70. India). radiator support. ASAL has a supply contract for panel B pillar. The company supplies front floor assembly.The Indian Supplier Report Piaggio (Body-in-white parts and skin panels). The company also supplies fender assembly to Mahindra & Mahindra tractors. Net Profit decreased by 60. 31 March 2008) in 2008 compared to INR108. INR bn 3.80m.83 168. Maharashtra. ASAL supplies the front headlamp panel. Seam welding at Bhosari (Pune. 31 March 2007) in 2007.34% to INR42. India). India) Shearing facility at Bhosari (Pune. Infrastructure 1500 ton double action press at Bhosari (Pune. rear suspension tower for the Tata Indica.06 Operating profit. panel dash and panel wheel housing for the Tata Safari.68m.69 170.42%.96 108. interest. India) CAD centre at Chakan (Pune. Maharashtra. L&T-John Deere (tractor fenders and consoles). (body-in-white) door-inner. Mahindra & Mahindra (tractor fenders). Maharashtra. INR m 204.23 226. longitudinal rear. India) Trailing arm machining centre CNC pipe bending machine Financial Overview In the financial year ended 31 March 2008. India). India). ASAL registered sales worth INR3. 630 ton single action press at Chakan (Pune. front tie member. INR m 42.outer and inner. 1000 ton hydraulic press at Chakan (Pune.45 188. Fuel tank welding at Bhosari (Pune.07 Profit before tax. Maharashtra. India) CAD centre at Bhosari (Pune. ASAL supplies the face side for Tata trucks and buses. ASAL supplies wheel arch for the Tata Sumo. Maharashtra. fuel tank top shell and rear suspension tower Tata Indigo. India) Powder coating facility at Bhosari (Pune. Maharashtra. Welding facility for oil sumps. ASAL has a press shop at the Chakan (Pune. Tool room at Bhosari (Pune. depreciation and extraordinary income decreased by 61. 68 1. € m 3. especially due to commodity hardening. Gestamp’s entry will help ASAL in entering high margin proprietary product streams. Gestamp will also be useful in winning business from the Volkswagen group which has targeted a large manufacturing footprint in India.46 Net Profit. ASAL has had difficulties in maintaining margins due to rising input costs.87 0.70 38.48 Operating profit.32 1.15 2.19 3.25 5.22 Profit before tax.05 2.01 4.87 0.71 51. €m 47.71 1.80 63.74 60. The company is also keen on improving its product mix by adding higher value added stampings to its present portfolio.92 1.The Indian Supplier Report Year Gross sales. € m 0. © SupplierBusiness Ltd 2009 103 . ASAL is dependent on Tata Motors for substantial volume growth and will benefit with new model introductions from Tata.37 2008 2007 2006 2005 2004 Outlook While overall volumes have been growing due to buoyant demand in the domestic passenger car market. €m 1.51 3. 30 September 2004) plant to export axle housings to Dana in the USA. drive heads Plants India (3) Sales INR 9bn (€140. it will help in increasing Dana's presence in the growing Indian market as well as help Dana outsource domestically manufactured components at a cost competitive rate.axlesindia.70m. Chennai. Financial Overview In the financial year ended 31 March 2008. Chairman and Managing Director MK Surendran. 31 March 2008). Eicher Motors. Axles India generated sales worth INR1. Axles India is widening its product range and growing its exports. Axles India was incorporated in 1983.29m. 30 November 2000) project to establish a facility for manufacturing drive heads. hub reduction axle housings. Production of pressed axle housings commenced in 1983. The company has started supplying Dana's Drive Head-60SH and plans to supply other models of Dana drive heads to its customers. Tel: + 91 44 2852 2745 Fax: + 91 44 2625 7121 Internet: http://www. Products Axle housings.600002. higher volume of exports of more products.000 axle housings from the company annually.The Indian Supplier Report Axles India Limited Axles Address Axles India Limited. Joint-ventures Axles India has technology alliance and equity participation with Dana Corporation (USA). as a tri-party joint-venture between Sundaram Finance. Further areas can be explored in the future such as R&D. Outlook While Axles India is able to access new product technologies and tap a worldwide customer base from Dana. axle beams. 21 Patullos Road. Axle India supplies to Ashok Leyland. Axles India is working on expanding its product portfolio with the help of Dana. Subsequent to Dana’s takeover of Eaton’s axle business. India Axles India is a leading supplier of axles to the commercial vehicle segment in India.Finance Recent Developments Corporate strategy In recent years. © SupplierBusiness Ltd 2009 104 . Mahindra & Mahindra. Swaraj Mazda and Tata Motors. With Dana as its joint-venture partner. Axles India announced its plan to establish a INR160m (€2. Axles India announced a INR52m (€1.000 axle housings from its three plants in India. Dana became the promoter. Axles India is working on plans to offer low cost production services to Dana for its requirement of axles and allied products. During the fiscal 2007/08 Axles India produced 145.Vice President. Wheels India and Eaton Corporation for the production of axles for medium and heavy duty commercial vehicles in India. Axles India has acquired competence to become a fully built axles manufacturer.5bn (€23.8m. Dana buys approximately 50. In November 2000. Investments In September 2004. General Manager. Further. 660 (31 March 2008) New Product Developments Axles India has technology support from Dana Corporation.00m. 31 December 2007) Employees c. Operations VR Ravi. Axles India is not listed for trade on Indian bourses and does not publish its financial statements.com Senior Officers S Ram. Axles India is also exploring export opportunities with Dana and has commissioned a 100% Export Oriented Unit. Certifications Axles India is accredited with QS 9000 certification. The plan involves introduction of drive heads into the Indian market. Auto electricals. Auto Electrical. L&T. HT coils and regulators for 2/3 wheelers. The company also exports to Behr (Germany). brake panel assemblies. Knorr Bremse. cylinder heads etc. steel wheel rims. Gravity Die-Castings (GDC). To meet the vision of Bagla group – engineered auto components for global market . Aurangabad Motors: has an operation in automotive. both of which have © SupplierBusiness Ltd 2009 105 .baglagroup. The company seeks to acquire a Europe or USA based business for market access and technology and supplement it with low cost manufacturing in its Indian plants. Today Bagla Group is now leading supplier of fully machined die cast component for automotive industry world wide. The company is promoting fully machined castings to strengthen its relationship with customers by partnering them as a full service supplier. Lombardini . the flagship company of Bagla Group was set up in 1986. Chairman & Managing Director Rishi Bagla. Aluminium die casting. 31 March 2007) Employees c. 65. manufacturing. Its electrical division manufactures magnetos. Joint Managing Director Mr K.500 (2007) Recent Developments Aurangabad Electrical’s focus is now on die cast components.3m. and wheels and rims. die-castings.59bn (€79. flasher relays. The company also supplies condensers for refrigerators. magnetos. brake panel assembly. High Pressure Die-Castings (HPDC). Aurangabad Electricals supplies to Bajaj Auto. Tel: +91 2431 251 482-86 Fax: +91 2431 251 488-9 Internet: http://www. wheels and brakes. motorcycle wheels. Knorr Bremse France. Magna International and Piaggio (Italy). Tata Motors. The technology tie up was taken from Shihlin Electric and the unit was set up as an ancillary unit to Bajaj Auto. In the late 90s Aurangabad Electricals diversified into pressure die-castings to serve Bajaj Auto Limited and other OEMs. President Milind Ajgaonkar. The aluminium pressure die casting unit produces aluminium components like brake drums. BEHR India. starter relays Finished aluminium die cast parts-brake drums. fasteners and wheel assemblies Address Aurangabad Electricals Gut No. die design. Delphi. Plants India (18) Sales INR 4.com Senior Officers R N Bagla. The focus is on developing a deep engineering competence. Aurangabad Electricals is working towards vertically integrating its die-casting business by adding a full fledged tool room and machining centre.The Indian Supplier Report Bagla Group Automotive electricals. BG-LIN: is the smallest of the group companies operating solely in the electricals area with relays and wound components like magnetos and HT coils. chromotizing etc. Vice President Marketing Products Auto electricals-CDI Units. The group has entered new segments. With Bajaj shipping greater volumes through the late 80s and early 90s. Further the company is making technological advancements in its die-castings to meet the customer requirements based on tougher emission norms. engine parts. wheel hubs Overall Bajaj Auto accounted for 80% of Aurangabad Electrical’s revenues in 2007.e.431 005 Maharashtra Bagla group is a lead supplier of automotive components primarily for OEM’s and tier-1 suppliers. generator covers. Fasteners. regulators. spokes & nipples. chain covers. Aurangabad Electricals. TACO etc. Though the performance of the setup remained subdued in early years due to relative inexperience and the lack of critical understanding. Aurangabad Electricals became the biggest manufacturer of magnetos in India. Paithan Aurangabad. CDI. 1. Group’s business is divided into three companies: Aurangabad Electricals: is the flagship company of the Bagla Group and has four operating segments . surface treatment processes like anodising.Raghavachary-Director Technical Ajay Kumar Tannu. Village Chitegaon Tq.the company started both backward and forward integration i. Aurangabad Electricals has developed strong relationship with its customers and is keen to concentrate on them for future growth in the die-casting segment. such as fasteners and wheels. for manufacturing 'Magneto Assembly' for two and three wheeler. Lucas TVS. The company has divided its operations into four divisions. The plant can be further upgraded to handle production volumes of upto 700 ton per month. Certification Aurangabad Electricals is accredited with TS 16949. as a forward integration to supply complete wheel assemblies for motorcycles.The Indian Supplier Report shown good demand. Bagla Group also shares a technical collaboration with Taigene Electric. Infrastructure Multiple CNC winding machine Epoxy powder coating machine Wave soldering machine Computerized magneto test bench Vaccum potting machine for H. the company started manufacture of wheel rims. coils H. for supply of moulds and dies. ISO 9001 and QS 9000 status. Piaggio. Bagla Group is building its second line of offerings to widen its reach in the market. Taiwan for magneto production. Taiwan for the production of relays. Bagla Group is working on options to acquire technical competence in the machining space..T. Uttar Pradesh.T. The tool room department has won contracts from L&T. INR 10bn (€173m. Investments List In 2007. Bagla Group supplies complete wheel and wheel ancillaries to Bajaj Auto for its entire range of products. Bagla Group invested an undisclosed amount for setting up a gravity die-casting facility in Uttaranchal. the company won contracts to supply die-casting components to Bajaj Auto Ltd. Bagla Group also supplies safety brake system components like SBA sets and valves to KnorrBremse. In 2006. Also in the same year. Bagla Group supplies die cast components for Behr’s viscous clutches. spokes and nipples. Contracts Aurangabad Electricals supplies bearing frames and air-intake pipes to Tata Motors. Bagla Group setup a fastener manufacturing facility at Aurangabad. L&T and Lombardini. the company set up a tool room with latest dies and moulds manufacturing facilities. In 2003. near Pune (Maharashtra) for motorcycles. Lombardini etc. Revenue target for 2010 is fixed at. Behr India. 31 March 2007) wherein 25% of the business is from export. Bagla Group has grown with Bajaj Auto in the two wheeler industry but has added new customers in four wheelers and commercial vehicles. In 2004. In 2005. with an installed capacity of 560 ton per month. Joint-ventures Bagla Group has a joint-venture with LI IN Electricals. coil testing machine Fully automatic die-casting machines ranging from 150 ton to 400 ton locking force with real time control. LI IN holds 25% equity in the joint-venture. The company won orders from Piaggio (Italy) for various die-casting components of the bi-cylinder and Derby engine sets along with suspension parts and aesthetic parts. the company set up a facility for die-casting and complete wheel rim assembly at Chakan. to meet the internal requirement of dies and moulds. Bagla Group shares a technical collaboration with Shihlin Electric for HT Coil production. Though the company is keen on the organic route for growth. Liquid painting plant Brake system manufacturing lines with brake drum and panel assembly © SupplierBusiness Ltd 2009 106 . 31 March 2007) while Aurangabad Motors and BG-LIN contributed INR 450m (€ 7.The Indian Supplier Report Wheel centering and tightening machine Nipple feeding and tightening machines (Panasetters) Financial Overview In the financial year 2007. 31 March 2007) and INR 13.3m. INR 4.01bn (€ 69. Outlook Bagla Group has witnessed substantial growth backed by its entry into the die-casting space. Bagla Group companies are privately held and do not publish financial statements.5m (€0.77m. © SupplierBusiness Ltd 2009 107 .59bn (€79. multi customer and multi location. Aurangabad Electricals contributed 87% of the total revenue with. The group is poised to make steady growth by scaling up its capacity. Aurangabad Electricals generated sales worth INR 4.23m. 31 March 2007) respectively. with the centralized core competency of engineering will support in achieving its growth target. the technical competence gap is expected to be bridged in medium term. The group’s strategy to follow multi product. 31 March 2007).3m. As demand for low cost sourcing for castings increases on account of closures of foundries in Europe and increasing amount of high end products are sourced from India. 6m. Also. DEL CAM. its third machining facility commenced operations. S. 750T (2 press). four-wheelers. powertrain assemblies. crank pin.900 (31 March 2008) © SupplierBusiness Ltd 2009 108 . Thakur. SPM. CEO & Joint MD Ajay Malik. INR 2bn (€31. Outlook While Bajaj Motors has strong supply linkages with two-wheeler OEMs. tubular components for suspension assemblies. Kinetic Engineering. standard room and liquated nitriding. V M Motori and Tenneco Automotive Senior Officers V P Bajaj. Bajaj Motors exports components to CNH Italy. Bajaj Motors started operations in 1986. Executive Director. fork gear shift.The Indian Supplier Report Bajaj Motors Forgings and machined parts Address Bajaj Motors Ltd 39-40 Km Stone. 1. Director Vikas Bajaj. Bajaj Motors established a new forging plant in Gurgaon (Haryana) and in 2001 it began commercial production. the company employs 1. hot forgings. Sales c. Marketing & Export J . crank shaft assemblies. VMCs. Hema Engineering. The company also supplies to automotive suppliers including the Endurance group. Divisional Manager. all located in Haryana. king pin. Currently. its contribution to four-wheeler programs is weak. three-shot blasting units. Forging facility has 500T. R&D J. phosphating plant. piston rod. key customer Hero Honda has partly shifted production to a new unit in Uttarakhand Employees c. upper bracket Plants Haryana (4) Certifications Bajaj Motors machining plant as well as forging plant is accredited with ISO 9001:2000 and TS-16949. 630T. stay rod. gear shift drum. Bajaj Motors is streamlining its supply capability with an aim to become a niche supplier of precision engine components. 31 March 2008) (Year to 31. and automated powder coating plant. Hero Honda. Machining Plant S. cold forged and cold extruded parts. CATIA. tool room. Narsingpur. The two wheeler market has slowed down in the last two years and this has affected its business volumes. designing section with working tools like UNIGRAPHICS. Infrastructure Machining facility has in-house facilities for die designing. its second machining unit was established and in 1995. shaft. Chairman & MD S P Bajaj. Quality Recent Developments Corporate strategy With an integrated forging and machining facility. CNC machining and turned components. sheet metal components. metallurgical labs. nitriding plant. Bajaj Motors' major domestic customers include Hero Motors. ISO-14001 certifications from TUV GmbH.bajajmotors. Bajaj Motors sales were estimated at INR2bn (€31.com Incorporated in 1986. Gurgaon 122 001.C Jha.K Vijay. Other facilities include induction hardening facility. In 2000. bushes. Germany. Currently it supplies to a few overseas customers but plans to increase its presence overseas. 600T. heat treatment. It also has an in-house die manufacturing unit aided by state of art CAD/CAM. Investments In 2000. CLGs. GPM etc. spindle axle. Exports is the company’s major focus currently for which it is imbibing quality processes in its plants.800 people at its three machining plants and one forging plant. Divisonal Manage. collar. Bajaj Motors is a supplier of precision engine components for two-wheelers.08) Financial Overview In 2008.6m. India Tel: +91 124 2371 453 Fax: +91 124 2372 553 Internet: http://www. Bajaj Motors' forging plant began and the company started its exports in 2003. stem complete steering. Products Arm valve rockers. Haryana. In 1992. Executive Director. More than 400 different machines consisting CNCs. Gabriel India. New Holland Tractors India and Suzuki Motors. fork shifter. Munjal Showa and Sandhar Technologies. cam shaft connecting rods. SG Iron castings. piston pin. tractors and other heavy machine equipment. precision. Husqvarna.03. Divisional Manager. In-house normalising plant. 1000T. 31 March 2008). bushing (ferrous & nonferrous). crank shafts. Delhi-Jaipur Highway. 1600T with capacity of forgings from 40 Grams to & 7 Kg. Forging Plant Tarun Bhargava. © SupplierBusiness Ltd 2009 109 . While several suppliers have followed Hero Honda’s to the new location Bajaj continues to utilize its present facilities.The Indian Supplier Report which enjoys a ten year tax break. Profit before tax for the year increased by 69. heat exchangers and gaskets in 1988.73m.Imola.The Indian Supplier Report Banco Products Gaskets & Radiators Address Banco Products Limited. Japan for technical know how for gaskets.94m. Maruti Udyog. LML. CEO RL Kedia. Year 2008 Net sales. As OEMs continue to shift from Copper-Brass to Aluminium radiators Banco expects brisk business. 31 March 2004). Bharat Earth Movers. 600 (31 March 2008) Financial Overview During the financial year ended 31 March 2008. Hindustan Motors.46m. INR m 626.15m. Middle East and Western Europe.46m.14 Net Profit.98bn (€ 47.99m (€ 6. Export-in-charge RR Biswas. Banco Products’ has seen a growth in the demand of Aluminium radiators especially for exports.98bn (€ 47. Investments In 2004. Banco Products exports to Case New Holland. oil coolers and engine gaskets. Banco acknowledges competition from international gasket manufacturers to intensify with theirentry into India. Tata Motors. 31 March 2007) in 2007. Indian Railways. an increase of 14. Banco Products began its automotive operations offering industrial radiators. INR m 432. intercoolers.bancoindia. Compressed Fibre Jointing Sheets (CFJS). 31 March 2007). Bajaj Auto. Sunbeam Industries.com Senior Officers VK Patel. Executive Director – Operations Products Aluminium radiators. Tractors & Farm Equipment. oil coolers and charged oil coolers.6bn (€ 44.98 Operating profit. Chairman Mehul K Patel.06% to INR 513. South East Asia. the company announced a new Export Oriented Unit for the supply of Aluminium radiators at a cost of INR 200m (€3.Italy and Jungheinrich Manufacturing. Greaves. heat exchangers and radiator segments. 31 March 2008). Incorporated in March 1961. Joint-ventures Banco Products shares an agreement with Japan Metal Gaskets Co.88m. Tel: +91 265 2680220 Fax: +91 265 2680433 Internet: http://www. INR bn 2. Banco Products is a major player in gaskets. 31 March 2008) Employees c. Force Motors. Padra Road.24m. District Baroda . Near Bhaili Railway Station. Certifications Banco Products has been accredited with TS 16949 status.14m (€ 8. Net profit recorded in 2008 ended 71.99 © SupplierBusiness Ltd 2009 110 . Banco will continue to grow its heat exchangers business with new aluminium products like. UK apart from supplies to Africa. It supplies its products to all-leading Original Equipment companies in India and has a considerable presence in the export markets. India Banco Products is a supplier of engine cooling components and engine sealing gaskets to the automotive industry. Hero Honda Motors. . moulded rubber gaskets Recent Developments Corporate strategy While growth in gasket demand has been nominal. Germany for non retorque cylinder heat gasket manufacturing. The company's product portfolio includes radiators. 31 March 2007).. Gaskets. Executive DirectorCommercial VB Rathod. 31 March 2008) in 2008 compared to INR 303. Additionally the company has design support from Elring Klinger. Banco Products recorded sales worth INR 2.52m (€ 5. Mahindra & Mahindra. Gujarat. INR m 513.42% higher compared to previous year’s figure of INR 432. Plants Gujarat (4) Sales INR 2.391 410. The company supplies to Ashok Leyland. Copper Brass radiators. Kirloskar Oil Engines. TVS Motor Company and Yamaha Motor India.65 Profit before tax. The company derives nearly a quarter of its sales from exports.16% compared to INR 2. The Indian Supplier Report 2007 2006 2005 2004 2.6 1.73 1.36 1.15 406.68 245.50 209.14 200.52 303.52 184.62 171.87 166.65 252.58 127.10 105.39 117.69 Year 2008 2007 2006 2005 2004 Net sales, EUR m 47.46 44.94 32.15 24.09 21.43 Operating profit, EUR m 9.95 7.02 4.57 3.70 3.75 Profit before tax, EUR m 8.15 5.24 3.44 3.04 3.11 Net Profit, EUR m 6.88 4.36 2.37 1.87 2.20 Outlook Entry of new players in the gasket segment has been a cause of concern for Banco. The company has expanded its range of aluminium heat exchanger offerings to counter pressure on its gaskets business. International players are expected to enter the country, following their global OEM customers to India. © SupplierBusiness Ltd 2009 111 The Indian Supplier Report Bharat Forge Forgings Address Bharat Forge Ltd Pune Cantonment Mundhwa Pune - 411 036 India Tel: +91 20 2670 2777 Fax: + 91 20 2682 2387 Internet: http://www.bharatforge.com Senior Officers B.N. Kalyani, Chairman and Managing Director G.K. Agarwal, Executive Director P.C. Bhalerao, Executive Director A.B. Kalyani, Executive Director P.K. Maheshwari, CFO Products Crankshafts, camshafts, connecting rods, control arms, front axles, front axle beams, hubs, piston crowns, rocker arms, steering knuckles, spindle, transmission parts, wheel carrier. Plants China, Germany(3), India (2), Sweden, Scotland, USA Sales INR19.93bn (€352.86m, 31 March 2005) (Year to 31.03.05) Employees 4000 (Year to 31 March 2005) Peer Group Crankshafts Amtek Auto, Amul Industries, Ashok Iron Works, Balu India, Cooper Foundry, DGP Hinoday, Sansera Engineering Connecting rods Amtek Auto, Hindustan Hardy Spicer, Amul Industries, Balu India, Kalyani Forge, Paranjape Autocast, SM Auto Engineering, Sansera Engineering Front Axles International Auto, Toyota Kirloskar At present, Bharat Forge has automotive manufacturing operations in two plants in India, three plants in Germany through its fully owned subsidiaries CDP Bharat Forge (two plants), Bharat Forge Alumiumtechnik (one plant) and one plant each in Sweden (Imatra), Scotland (Imatra) and USA (Federal Forge) and one in China. The company also has offices in Brazil, China, France, Germany, Japan, Mexico, Singapore, South Korea, Sri Lanka, UK and USA. Bharat Forge has a strong presence in Asia, USA and Europe. On a global basis BFL (including CDP-BF and BF-AT and excluding Imatra and Federal Forge) serves 150 customers. In India, Bharat Forge’s customers include Ashok Leyland, Bajaj Auto, Cummins, Eicher Motors, Force Motors, Mahindra & Mahindra, Maruti Udyog, Tata Cummins and Tata Motors. Internationally, the company is supplying to Caterpillar-Perkins, DaimlerChrysler, Dana, Dirona, Isuzu, Lister-Petter, Macimex, Meritor, Mitsubishi, New Holland, Renault, Spicer, Ssangyong Motors, Toyota and Volvo Trucks. Bharat Forge is also a supplier to Tier I suppliers like Arvin Meritor and Dana. Bharat Forge is the second largest forging company in the world and the largest in Asia and has the largest established forging capacity in the world at over 700,000 tonnes per annum (TPA). The company has manufacturing facilities in China, Germany, India, Sweden, UK and USA and is India’s largest automotive component exporter. A major player in the commercial vehicle segment, the recent acquisitions have given Bharat Forge an entry into the passenger car segment and access to international clients like Audi, BMW, DaimlerChrysler, Volkswagen and Volvo. Bharat Forge is the flagship company of the Kalyani Group, which in 2008 had net sales exceeding US$2.40bn. Bharat Forge is Asia’s largest forging company and is second in the world. The company has an aggressive international programme and in the last five years has grown internationally organically as well as through acquisitions. In 2008, the Indian market accounted for 26% of Bharat Forge’s consolidated sales, the rest of Asia-Pacific accounted for 8%, Europe 49% and USA accounted for 17% of net sales. In the same year, 35% of Bharat Forge’s business came from the commercial vehicles segment, 25% comes from diesel engines and 22% was accounted by passenger cars. The remaining 18% was non-automotive business. Bharat Forge has the second largest forge shop in Germany and the largest single location facility in the world in India. The company has a combined forging capacity of over 700,000 TPA and produces forgings of weight ranging from 2kg to 350kg. It claims to be one of the only two companies in the world with two 16,000MT Weingarten Press Lines. The company also claims to be the largest axle component manufacturer in the world with a 35% market share and the second largest engine component manufacturer in the world with a 10% market share, which it plans to increase to 30-40%. It also claims leadership in crankshaft forging capacity. The company also claims global leadership in the commercial vehicle chassis segment. Recent Developments Corporate Strategy With the aim of becoming a global full service supplier BFL is eyeing growth in sales and earnings by means of scaling its operations to © SupplierBusiness Ltd 2009 112 The Indian Supplier Report Auto Parts Steering knuckles Rico Auto Industries Camshafts Amul Industries, Indo Shell Mould, Mahle Migma global standards. BFL is keen on ramping up capacity as well as honing its technical skills to a worldwide touchstone. The company has been growing aggressively through acquisitions and capacity expansion. The recent acquisition of CDP Forge GmbH and CDP Aluminiumtechnik GmbH in Germany, Federal Forge in USA, Imatra Kilsta in Sweden and Scotland have given Bharat Forge valuable passenger car business and also an entry into aluminium forgings. Further, with these acquisitions Bharat Forge has become a one stop shop for all automotive forgings. Bharat Forge is keen on establishing a Dual Shore Manufacturing model, wherein the company plans to use its offshore locations as a technical hub with inclination towards product design, development and manufacturing of high value critical components while domestic set-ups shall be engaged in high volume production owing to its low cost advantage. With the acquisition of Imatra Kilsta, BFL now has the capability of producing all its core products in at least two locations worldwide coupled with front-end support to customers. In May 2005, Bharat Forge raised INR9.6bn (€176.97m, 31 May 2005) by means of GDRs and FCCBs for funding its organic and inorganic growth oriented plans and to establish a global technical front-end for design and engineering needs of global customers. BFL is pushing for growth into the domestic passenger car market by expanding capacity to supply passenger car engine, chassis and transmission components. BFL has traditionally been supplying crankshafts for heavy trucks in the North American market. In 2004-05 the company added passenger car crankshafts to its portfolio. BFL plans to keep up the thrust on the supply of high value machined crankshafts for medium and heavy-duty commercial vehicles in the region. The company has supply contracts of crankshafts with two major engine manufacturers in USA. Bharat Forge has been supplying engine products to China for over three years and accounts for a 55% market share in the CV sector. The company is evaluating possibilities of supplying chassis components for CVs as well as for cars, both made by Chinese and American companies. At present BFL is the largest supplier to Volkswagen in China for engine parts through CDP-BF and BF-AT. Bharat Forge is trying to position itself as a Full Service Supplier of powertrain and chassis components as it inches closer to establishing ties with global OEMs and first tier vendors. Bharat Forge is now present across three major geographies and plans to become a global force by 2008. In the last two years, detecting an impending slowdown in the automotive industry, Bharat Forge has taken a conscious decision to enter non-automotive forgings and other industry segments like wind energy. Acquisitions In September 2005, BFL acquired 100% holding in Imatra Kilsta AB, Sweden and its Scotland based fully owned subsidiary Scottish Stampings Ltd in an all cash deal. The duo together referred to as the Imatra Forging Group is the largest manufacturer of front axle beams in Europe and the second largest crankshaft producer in Europe with manufacturing locations in Karlskoga (Sweden) and Ayr (Scotland). The group is a major supplier to OEMs such as Volvo, Scania, SAAB, DAF, Perkins, MAN and Iveco. The group has a total forging capacity of 0.1m tonnes with annual sales of SEK1bn (€108m, 30 September 2005) and a headcount of 600. In June 2005, Bharat Forge acquired Federal Forge Inc. through Bharat Forge America Inc. a wholly owned subsidiary of the Bharat Forge Group in an all cash deal pegged at US$9.1m (€7.63m, 30 June 2005). The acquisition places BFL in close proximity to the facilities of The Big Three and the rest of the American Automotive industry. Federal Forge undertakes production of control arms, links, steering knuckles, connecting rods, etc. The company’s annual sales are about US$60m with a headcount of 150. Federal Forge’s clients include ZF Lemforder and Goodyear. © SupplierBusiness Ltd 2009 113 The Indian Supplier Report In December 2004, Bharat Forge completely acquired CDP Aluminiumtechnik GmbH in Germany from the CDP group in an all-cash deal of €6.3m. CDP Aluminiumtechnik GmbH is an aluminium forging supplier which lists Audi, BMW, Ford and Volkswagen amongst others as its customers and has a net sales of more than €35m. The company has been renamed Bharat Forge Alumniniumtechnik. In November 2003, Bharat Forge acquired Carl Dan Peddinghaus Forge GmbH & Co. in Germany. Under the acquisition, Bharat Forge acquired 100% of CDP Forge’s fixed assets, inventory and business. CDP Forge GmbH is one of the oldest forging companies in Germany and supplies to Audi, BMW, DaimlerChrysler, Volkswagen and Volvo amongst others. CDP Forge had annual sales of €116m in 2002. The company has been renamed CDP-Bharat Forge. In January 2002, Bharat Forge acquired the manufacturing set up as well as the order book of Kirkstall Forge for £2.4m (€3.42m, 31 January 2002). Bharat Forge announced that it will complete the orders over the next seven years. Joint-venture In December 2005, Bharat Forge announced a joint-venture with FAW Corporation for its forging facilities under the name FAW Bharat Forge (Changchun) Company. BFL acquired 52% stake in the joint-venture. BFL shall bring cash to the joint-venture while FAW is adding assets. The Changchun based facility has a current forging capacity of 0.1m metric tons with a workforce of 1,700 people. The joint-venture shall cater to the needs of FAW’s car assembling operations which manufactures vehicles for Volkswagen and Toyota. BFL shall also leverage FAW’s forging competency in the car forgings segment. Investments In March 2006, FAW Bharat Forge (Changchun) Co., Ltd, a joint-venture between Bharat Forge Limited and FAW Group Corporation, became functional. The joint-venture will manufacture critical and safety components for the automotive industry. In January 2006, Bharat Forge announced an INR4bn (€75.18m, 31 January 2006) investment for a green field facility in India for larger products, sub-assemblies and value added products and development centre at its offshore locations. In 2005, Bharat Forge completed a capacity expansion program increasing its forging capacity to 350,000 tonnes per annum and the crankshaft machining capacity to more than 650,000 crankshafts per annum. Bharat Forge also significantly added to its small forging capacity by setting up two additional 6000 MT press line, including one fully automated transfer press line. These additions doubled the company’s passenger car crankshaft forging capacity to approximately 3m crankshafts per year. The expansion was funded through a rights issue in August 2004. CDP-BF is investing in new press lines and added machining capacity for steering knuckles. BFL is setting-up a product design and engineering facility in Germany. In 2004, BFL announced expansion plan for its Pune facility with a plan to ramp up finished crankshaft capacity from 413,000m units to 650,000 units per annum. BFL also announced a plan to increase front axle capacity to 1m units. Besides the company also announced expansion of the machining capacity at its Mundhwa and Chakan, Pune (India) facilities. In order to fund these plans a rights issue was floated in October 2004 raising INR1.05bn (€18.89m, 30 October 2004). The proceeds from the issue have been routed to the expansion program underway at its Mundhwa, Pune (India) facility. Under the expansion BFL plans to increase the forging capacity of its Mundhwa plant to 240,000 MT by the March 2006. Bharat Forge invested in a testing and validation facility. This new facility enabled the company to fatigue test products for customers, using their protocols. This lowers switching costs for customers to switch to Bharat Forge and increase customer traction. © SupplierBusiness Ltd 2009 114 The Indian Supplier Report Contracts In July 2004, Bharat Forge won two major contracts for machined heavyduty diesel engine crankshafts from leading global engine manufacturers. The names of the engine manufacturers were not disclosed. In October 2003, Bharat Forge announced that it had been chosen by Ford Motor Company as a supplier to its global car programs. In October 2003, Bharat Forge was chosen to supply crankshaft and camshaft forgings to DaimlerChrysler’s global passenger car programs. In October 2003, Bharat Forge announced that it had been chosen to supply control arm forgings to a global passenger car company in Australia. In October 2003, Bharat Forge was chosen to supply steering knuckles forgings to Dana, USA. In May 2002, it was announced that Bharat Forge had won a five-year contract to supply engine components to a Chinese OEM. In January 2002, Bharat Forge entered into a contract to supply forgings to Dana Spicer Europe’s Kirkstall Forging operations. Bharat Forge took over Kirkstall’s responsibilities as supplier to Cooper Cameron Corporation for gate valve body forgings and choke body, nut and bonnet forgings. New Product Development Other than its own set-ups, Bharat Forge sponsors six programmes in German universities to develop technologies in its area of business. The company has recently received a patent for micro alloy steel while another one is pending with the authorities. Financial Overview For the year ending 31 March 2008, Bharat Forge reported consolidated sales of INR47.51bn (€750.75m, 31 March 2008), a 11.1% growth over previous year’s sales of INR42.75bn (€738.33m, 31 March 2007). Profit before tax for the FY2008 was INR4.49bn (€71.07m, 31 March 2008), a rise of 2.9% over last year’s figure of INR4.36bn (€75.35m, 31 March 2007). Net profit for the period was INR3.01bn (€47.64m, 31 March 2008), a rise of 61% over last year’s net profit of INR2.90bn (€50.19m, 31 March 2007) for the same period. In the first six months ended 30 September 2008, Bharat Forge Limited and its subsidiaries registered sales worth INR13.60bn (€199.24m, 30 September 2008), a growth of 28% over last year’s figure for the same period. Profit before tax for the first six months of FY2008 was up by 8% at INR1.19bn (€17.14m, 30 September 2008). Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales, INR bn 47.51 42.75 30.85 19.93 8.32 Gross sales, €m 750.75 738.33 574.45 352.86 155.42 Profit Before Tax, INR bn 4.49 4.36 3.92 3.13 1.81 Profit Before Tax, € m 71.07 75.35 73.08 55.42 33.81 Net Profit, INR bn 3.01 2.90 2.50 2.01 1.25 Net Profit, €m 47.64 50.19 46.64 35.59 23.35 Outlook Bharat Forge is aggressively pursuing global expansion. This is in line with the company’s aim of de-risking its business. While the company has achieved market de-risking by expanding its global reach, product de-risking is being achieved through acquisitions like CDP Forge GmbH, CDP Aluminiumtechnik, Federal Forge and Imatra Group. Bharat Forge is exploring synergies with CDP Forge. While Bharat Forge is strong in commercial vehicles and is now venturing into passenger car engine components, CDP’s strength has been passenger car chassis components. In the future, Bharat Forge will focus © SupplierBusiness Ltd 2009 115 The Indian Supplier Report on passenger car engine components and heavy duty machined crankshafts while CDP will continue to focus on passenger car chassis components. Also, through CDP, Bharat Forge gets access to European customers like Audi, BMW and Volkswagen. The company is looking at potential in three areas of operations – small forgings for passenger cars, heavy forgings and heavy duty crank shaft machining. The CDP Forge acquisition will strengthen Bharat Forge’s hold in the passenger car forgings segment. The company is also increasing its capacity in this area. In the heavy-duty machined engine components segment, where it currently has a 5 % market share globally, the company is scaling up and aims to be the global leader in the future. The company is also aggressively pursuing the machined heavy-duty crankshaft business and has won orders from two major diesel engine manufacturers. © SupplierBusiness Ltd 2009 116 New Holland. In 1985. Thane (1) Recent Developments Corporate Strategy In 2006. gear boxes. pinions. Head OE Marketing Milind Pujari. Bharat Gears observed robust growth especially with the government support to the agricultural sector and the removal of excise duty on tractors. The setup has helped BGL boost sales as Spicer is a leading manufacturers and suppliers of completely built Light Axle assemblies to major players in this sector. commercial vehicle and utility vehicle manufacturers. Cararro India. The company largely caters to the tractor segment. heat treatment furnaces. Spicer India. TDI USA and Transaxle Manufacturing of America. BGL contributed in the venture with technical support and engineering services and bagged sole marketing rights for the manufactured goods. differential cage. Head. Having achieved a financial turnaround.The Indian Supplier Report Bharat Gears Gears. Escorts. Hoechst House. while furnaces and gearboxes generate the balance. gearboxes. straight bevel. In the nineties. BGL has identified commercial vehicles as a key growth driver. BGL exports gears to customers including Cararro Italy. Tractors are the single largest source of revenue for Bharat Gears. In the domestic market. BGL's customers comprise of Ashok Leyland. In 1996. BGL made a financial turnaround in 2005 after four years of accumulated losses. differential gears. forgings and continuous gas carburizing furnaces. The tractor segment accounted for nearly 50% of the company's sales in 2007. Hindustan Motors. Further BGL also undertakes production of . TAFE. ring gears. Thereafter.08) Employees 1. ZF Friedrichshafen AG took an equity stake in the company in exchange for technical know-how. TATA Motors Ltd. Automotive gears account for 99% of the company's business. automotive sales in the commercial vehicles and tractor segment remained subdued forcing the company into losses. L&T John Deere. Godrej. straight bevels. Promoted by Bharat Steel Tubes and Raunaq & Co. Executive Director.. Dana Corporation. In the passenger car market. brass rings. Toyota Kirloskar Auto Parts.com Senior Officers Surinder P Kanwar. BGL (Bharat Gears Limited) was incorporated in 1971 to manufacture automotive gears including spiral bevel. In 1986. Strategic Planning KK Deshpande... A new company was floated for the same purpose under the name of Raunaq Automotive Components Ltd. bi-metal bearings per annum at Gairul near Moradabad (Uttar Pradesh. Mahindra & Mahindra. transmission shafts Plants Faridabad (1). Volvo India.12. ZF increased its equity holding in the company. crown wheel. Fax: +91 22 2535 1651/ 2282 1465 Internet: http://www.36bn (€37. Axles India. spur and helical and worm gears. 31 March 2008) (Year to 31. Chairman & Managing Director Sameer Kanwar. in the Indian market. Funk USA. Financial controller Sameer Kanwar. BGL entered into a joint-venture with PICUP for the production of gears with a volume of 1000 tons of automotive gears and 10m units of thinwalled. Swaraj Mazda. BGL is a marginal player but the company has managed to receive some success with the contract to supply the Tata Ace four-wheeler pick-up program lately. India).sealed quench. BGL began producing gearboxes. furnaces Address Bharat Gears Limited. Business Development Products Axle shafts. Exports contribute 25% of sales. furnaces. ZF holds 26% equity in the company. In this period BGL expanded its production capacity at the Mumbai facility.bharatgears. transmission gears. Nariman Point. VST Tractors (Mitsubishi).319 (31 March 2008) © SupplierBusiness Ltd 2009 117 . Same Deutz-Fahr. gear boxes. Corporate Business Head GM Kinnarkar. gearbox housing.48m. Executive director Strategic planning NV Srinivasan. BGL also has a tie up with Spicer India. Mumbai-400 021 Tel: +91 22 2535 2034/ 2283 2370/ 2535 2621 Bharat Bharat Gears is a market leader in gear technology and India's largest gear manufacturer. Voltas Tractors Ltd. BGL is now aiming for the export market with its range of products. continuous gas Sales INR 2. Joint-ventures Bharat Gears has a financial and technical collaboration with ZF Friedrichshafen AG since 1985. BGL recorded net sales of INR 2.55 20. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales.74 0.52m.60 Profit Before Tax. €m 5.52m.93m.76%. rotary hearths etc. increasing 4. © SupplierBusiness Ltd 2009 118 .8m (€1.47 Profit Before Tax.87 1.60 Net Profit.77 -0.60 247. USA. an increase of 25. an increase of 14. Profit before tax was INR147. BGL started supplies of gears to Toyota Kirloskar Auto Parts.6m. 31 March 2008) in 2008 as compared to INR 87.16 5.91 0. INR m 147.20 48.36 2. 31 March 2007) in 2007. In 2004.90 39. China and USA.36bn (€37.46 Operating Profit. 31 March 2007) in 2007.60 1. under a licensing arrangement from AFCHolcroft. €m 1. INR bn 2.52 0.90m (€1.48 38.43 4. €m 37. BGL received Tata Motor's contract for the supply of transmission gears for the Tata Ace program. Financial Overview In the financial year ended 31 March 2007. 31 March 2007) in 2007. INR m 100. In 2005.38 3.67 1. INR m 324.60 -14.27 Net Profit.75 29.8 87.93 34.8 314. €m 2.70 43.88% over previous year's sales of INR 2. 31 March 2008). Certifications BGL has been accredited with QS 9000 certification.44 4. 31 March 2008) compared to INR117.77 -0. BGL’s de-risking strategy for reducing its reliance on the tractor segment is yet to bear fruit as BGL has not been able to add much business outside the tractor space. BGL shall hike output to 22.000 gearboxes to Bangalore based Toyota Kirloskar Auto Parts for exports.70 238. for which Bharat gears started supplying in 2005.80 43.60 185. Contracts The company has received supply orders form OEMs in Europe.The Indian Supplier Report carburisers.60 Operating Profit.500 gears per month by April 2006. BGL supplies nearly 160.02 0.34m.20m (€1.25bn (€38.10 Gross sales. The company reported a net profit of INR 100.34 2.25 1.27 Outlook BGL has managed to bag significant contracts and has show impressive growth over the past few years. The most significant non-tractor contract is for the Tata Ace program.60 -14.48m. The company also supplies crown pinions for the Ace program.40m (€2.4 117.67%. INRm Profit before tax. Assistant General Manager. The company has also commenced operations at a research and development centre certified by the Department of Science and Technology. Bharat Seats’ Seat and Frames Testing Laboratory was certified by NABL.75bn (€30.29m (€0. Divestments In 2005.57m. floor carpets Plants Gurgaon (Haryana) Sales INR1. 31 March 2007) in 2007.51m. Bharat Seats designed and developed seating systems for Suzuki motorcycle and a profile cutting system for Maruti Suzuki Alto floor carpet.99bn (€31.99bn (€31. an increase of 10. 31 March 2008). 31 March 2008) Employees c. 31 March 2008). Managing Director RK Gupta. 31 March 2007).37% compared to INR 29.110 020 Bharat Seats is a major supplier of seat assemblies to Maruti Udyog. Maruti Udyog and the Relan Group in 1986 to supply seats for Maruti's product range. INRm © SupplierBusiness Ltd 2009 119 . Government of India. Bharat Seats has been accredited with TS 16949 status. It has diversified into production of floor carpets and is also looking at other products after years of being a sole supplier to Maruti. Bharat Seats reduced its workforce through a voluntary retirement scheme. Tel: +91 11 2681 4585 Fax: +91 124 2341 188 Senior Officers ND Relan. INRm Net Profit. Okhla Industrial Area.33m (€0. INRbn Operating profit. 31 March 2007) in 2007. Net profit was reported at INR32. Bharat Seats generated net sales worth INR1. Its plant is located in the Maruti joint-venture complex. Ltd.225 (31 March 2007) New Product Developments In 2005.45% compared to sales worth INR1.The Indian Supplier Report Bharat Seats Automotive seats Address Bharat Seats Limited.57m. Bharat Seats has a contract to supply seats to Suzuki Motorcycles India. The company operates from a facility at Gurgaon (Haryana) inside the Maruti jointventure complex. Vice President-Finance Sanjeev Kumar. vendor park. Bharat Seats has commissioned in-house designing and testing capabilities to reduce product validation time. Chairman Rohit Relan.26m.24m. 73 employees opted for the scheme.24m. Bharat Seats was established as a three-way joint-venture between Suzuki Motor Company.81% to INR78.1. In 1999. Contracts Bharat Seats supplies floor carpets to Maruti Udyog. The company is working on new products and is scouting for new customers to grow its business. the company added headrests to its product portfolio. 31 March 2008) from INR72. Operating Profit increased 8. Phase 1 New Delhi. The company has been selected to supply floor carpets and seats to Suzuki Motor Corporation India for its future models.Finance Recent Developments Corporate strategy Bharat Seats has cut down its labour strength in order to ensure competitiveness in the company. Bharat Seats supplies solely to Maruti Udyog. Certifications In 2005. Financial Overview In the financial year ended 31 March 2008.36m (€1.51m. Products Automotive seat assemblies and headrests. Joint-ventures Bharat Seats has a technical alliance for seat assemblies with Houwa Kogyo Co. Year Gross sales. B-238. a growth of 13. adjacent to Maruti's assembly plant.01m (€. Bharat Seats was till recently solely dependent on Maruti.75 41. €m 1. sales of the model program it supplies to have decreased with time.64 0.95 24.26 26.43 0. Suzuki Motorcycle to its portfolio.03 37. Bharat Seats had a monopoly in seats supply to Maruti but that has changed now.42 Net Profit.47 20.33 29.94 Operating profit.64 34.99 1.01 73.76 0.65 0.45 31.57 30.22 Profit before tax.The Indian Supplier Report 2008 2007 2006 2005 2004 Year 1.38 1.37 1.29 25.55 48. Maruti has in the recent past awarded seating contracts to other vendors putting Bharat Seats in a precarious position. © SupplierBusiness Ltd 2009 120 .24 1.72 24. Unlike other Maruti associate vendors who have reduced their dependence on Maruti.47 0. Further.44 1. Some progress has been made by an eminent contract from Suzuki Motor Corporation India and adding carpets to its range for Maruti's various models.51 0.36 72.77 32. €m 0.47 26.71 68. €m 31.97 82. €m 0.59 2008 2007 2006 2005 2004 Outlook Bharat Seats finally added a second customer.89 78.75 1. Bharat Seats future will depend on winning new contracts and diversifying its product range.24 1.51 0.48 0.22 1.12 Gross sales. Tel: + 91 11 2646 2373 Fax: + 91 11 2647 8750 Internet: http://www. hardened strips. tempered and hardened steel and colour coating line at its Khopoli (Maharashtra. 1st Floor International Trade Tower Nehru Place New Delhi.110 019 Bhushan Steel & Strips Limited (BSSL) is India’s third largest secondary steel supplier in India. Kirloskar. Mexico.43MTPA of which 0. BSSL commissioned CR wider mill. high tensile steel strapping line. The company is looking at aligning its product mix to increase the share of business it derives from OEMs and export markets. India) based facility. Netherlands.com Senior Officers Brij Bhushan Singal. Maruti Suzuki. tempered strips Plants India: Maharashtra (1).05) Employees 2.The Indian Supplier Report Bhushan Steel Automotive Steels Address Bhushan Steel & Strips Limited F-Block. Man B&W. The company is increasingly eyeing the automotive and white goods industry for specialised products to boost its bottom line. HM. Mecon. Uttar Pradesh (2) Sales INR 26. diversify client base and introduction of higher value added products. In 2004-05. Products Colour coated sheets. BSSL also has technical tie ups with Sumitomo. BSSL supplies to Ashok Leyland. Heinrich George. In 2004-05. spring steels. New Zealand. BSSL has three manufacturing set ups in India located close to Northern and Western automotive clusters. Austria. Philippines. SMS Demag. Kvaerner Clecim. Japan. Japan. Italy. BSSL intends to commence production of sponge iron and billets by April 2006. BSSL is India’s only steel supplier of widest width automotive grade cold rolled (CR) steel. Germany. Waldrich Siegen. In 2003-04. France. Honda Motorcycle & Scooter India. In 2004-05. South Korea and Spain.89bn (€ 507. Managing Director Recent Developments Corporate strategy BSSL has been working on a three-pronged corporate strategy that aims to facilitate backward integration. Investments In 2004-05. galvanising line. The plant has an installed production capacity of 0.03. Fimi.78m. Honda Siel. BSSL developed special grades of import substitute CR steels like HSLA (High Steel Low Alloy) witch applications like car panels. RITES. 31 March 2005) (Year to 31. Germany. BSSL is aiming for an across the board presence in the steel industry which includes for improving profit margins by means of this vertical integration exercise. Japan. Ford. The company is also the largest supplier of steel to the automotive and white goods industry in India. Mahindra. The company also exports its products to markets like Australia. Hyundai India. LML. Bhushan Steel announced the setting up of a green field hot rolling facility at Orissa.bhushansteel. Germany. Fiat.24MTPA is for galvanised steel. Germany and Daniel Corus. BHEL. precision tube mill. Certifications BSSL has been accredited with ISO 9002 and QS 9000 certifications. Portugal. With the new facility BSSL shall enter the primary steel sector. In 2004-05. Chairman Sanjay Singal. Joint-ventures BSSL has a strategic tie-up with Sumitomo Metal. WAPCOS. Ebner. BSSL introduced colour coated sheets in India. Germany.166 (31 March 2005) New Product Developments BSSL is working on introducing Galume value added steel in India. BSSL commissioned a CR (narrow) and pipe plant at Sahibabad (Uttar Pradesh. Chile. BSSL also developed IF steel for applications like car body outer © SupplierBusiness Ltd 2009 121 . precision tubes. LOI Thermoprocess GmbH. ABB Lurgi. BSSL commissioned a plant at Khopoli (Maharashtra. Also in 2004-05. India) for the production of cold rolled steel. Hitachi. Vice Chairman Neeraj Singal. high tensile steel strapping. India). Tata Motors and Yamaha. 77 Operating Profit.1 70.24 3.The Indian Supplier Report panels and white goods and high tensile material for wheel rims.85bn (€208. 31 March 2007) in 2007 to INR4.75 Net Profit. 30 September 2008).87 6. a growth of 11. coupled with spiralling prices drove Bhushan Steel’s sales and profits.59 51.73bn (€738.03bn (€18.5 27.0 54.12m.02bn (€725. € m 140.85m.43bn (€17. compared to previous year’s figure of INR1.53 0.10 2.13 1.1 26. € m 67. 30 September 2007) in 2007 compared to a net profit of INR1. 31 March 2008) in 2008.77m.7m.1m.54 1.13bn (€54. © SupplierBusiness Ltd 2009 122 . For the six-month period ended 30 September 2008. Financial Overview During fiscal 2007-08. Bhushan Steel recorded sales worth INR16.02 30. 30 September 2007). Net profit improved by 38. Profit after tax improved from INR3. 31 March 2007) generated in the previous fiscal.15m.70 28. INR bn 46. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales. 31 March 2008) in 2008. Bhushan Steel is also expected to face global competition in the wake of more international players entering the Indian market.87bn (€140.15 116. 31 March 2008) compared to sales worth INR42.90 Net Profit. However. INR bn 8. steel prices have cooled off since then and the Indian automotive industry is likely to follow the global trend of slowdown.72bn (€39.2 72.22m.09 16. 30 September 2008) in 2008.59 4.24bn (€67. Profit before tax rose by 34.25% at INR1. BSSL generated sales worth INR46.68 17.65bn (€29. INR bn 4.08 4. A massive increase in demand of steel in the last year. € m 738.7 246.73 42. an increase of 35. 30 September 2007).46bn (€241.20m.3m.6% to INR8.70 507.60 Operating Profit. 30 September 2008) in 2008.0m.3 725. an increase of 39% compared to previous year’s figure of INR11.59 Gross sales.2%.46%.62m.78 328.81 Outlook The last financial year has been good for the Indian steel industry in general and Bhushan Steel in particular. Operating profit for the six-month period was INR2. PVC goods and steel foundry. 31 March 2008) Employees Automotive: c. Joint-ventures Birla Corporation has a technical collaboration with Germany based EmpeWerke to manufacture moulded jute fibre reinforced door trims. Contracts Birla Corporation supplies door trims to the Maruti Alto programs. Chakan (Maharashtra). indicating a major demand crunch at a time when the automotive market is seeing double digit growth.The Indian Supplier Report Birla Corporation Automotive interiors Address Birla Corporation Limited Birla Building 9/1. the Auto trim division of Birla Corporation began utilizing additional jute for producing natural fibre-based interiors from Birla Corporation's Birlapur (West Bengal) facility. The company has incorporated one-step technology for using recyclable thermoplastic material. India) facility supplies largely to Hindustan Motors.based interiors over plastic-moulded components. nonwoven synthetic felt. R. underlay carpet material. 230 (2008) © SupplierBusiness Ltd 2009 123 . carbides.25bn (€273. B. Birla Corporation has three auto trim facilities one each at Birlapur (West Bengal). gases. Birla Corporation expects similar norms to be enforced in the country. compression moulding. Coordinator. which is switching car interiors to natural fibre. Vice President Recent Developments Corporate strategy Despite Birla Corporation’s unique offering and supply capability the company’s offtake has been extremely low. cost and environment problems considerably. Chakan (Maharashtra) and Gurgaon (Haryana). The company supplies door trims to General Motors India. jute. Birla Corporation supplies trims to the HM-Mitsubishi Lancer program. C pillars.000 pieces per annum and produced 199. Hindustan Motors. Tel: +91 33 2213 0380/ 1680 Fax: +91 33 2248 2872/ 7988 Internet: http://www. the Gurgaon (Haryana) facility supplies to Maruti Udyog and the Chakan (Maharashtra) facility supplies to manufacturers in the Western region. and parcel trays for the HM Ambassador model. The company has an installed production capacity of 567. Infrastructure Birla Corporation’s supply capabilities include non-woven jute felt. Maruti Udyog and Tata Motors. The company supplies interiors trims for pillars. Gurgaon (Haryana) Sales Group: INR17. pillar trims. Divestments In January 2005. trims Plants Autotrim division:Birlapur (West Bengal). Auto Trim Division S Goswami. Accounts & MIS Alok Kumar. door trims. Birla Corporation has been supporting the use of natural fibre. Johnson Controls (Australia). Birla Corporation supplies door trims to Tata Safari vehicle. especially the commercial vehicle manufacturers following the lead from DaimlerChrysler. The company’s capacity utilization was at 12% in 2007. Vice. Mukherjee Road Kolkata-700001 India Birla Corporation is a part of the MP Birla Group with interests in automotive trims. N.90m. Another reason for Birla Corporation's sustained effort is the fact that norms in Europe require manufacturers to ensure that at least 90% of the car is recyclable. In 1995.birlacorporation. headliners. Birla Corporation announced its intention to close its Birlapur (West Bengal) facility. parcel trays. Executive Director & CEO PK Chand. Joint President Finance.000 pieces in 2005. While the Birlapur (West Bengal. Managing Director BR Nahar. cement. Birla Corporation has been awarded a contract to supply door trims to the face-lifted Mahindra Scorpio model. The company claims that the use of natural fibrebased interiors helps cut down weight.com Senior Officers KC Mittal. Birla Corporation is aggressively marketing its environment-friendly products to OEMs.President. Products A. The key reason for this situation lies in the volumes being supplied.91 237.34 23. a decrease of 17.44 56.26bn (€56. 31 March 2008) in 2008.73 25.42 Profit before tax.90 309.90m.93bn (€62.43 Net sales. INR bn 3. 31 March 2007) in 2007.66 18.74 26.55% compared to INR3. 31 March 2007) in 2007.20 1. Net profit was INR3.92 1.26 0.1 Operating profit. New Product Developments Birla Corporation has developed a jute composite-based headliner for the HM Ambassador model. Financial Overview In the financial year ended 31 March 2008.25 17.51 4.45 1. net sales of Birla Corporation were INR17.42 Net Profit. © SupplierBusiness Ltd 2009 124 . ultrasonic welding.46 79. EUR m 273.25bn (€273. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales.91m.4 0. lamination.43 12.93 3. Certifications Birla Corporation is accredited with ISO 9002. an increase of 20. QS 9000 certifications.37 7.34m. INR bn 5.57m pieces per annum for various trims. chemical bonding and synthetic moulds.25% compared to INR17.00 Operating profit.94 0.The Indian Supplier Report vacuum forming.95 14.76 Outlook Birla Corporation’s failure to win new business from the Indian automotive OEMs for its auto trims business has resulted in spare capacity. Auto Trim division which had turned around in 2005 has again slipped back into losses.83 16. high frequency welding.91 266.33 13. EUR m NA 89. high volume orders have not been tapped at this moment. 31 March 2008). EUR m 62.26 1. The companies’ substrate capabilities include jute fibre. EUR m 87.7 232.62 1.68 Profit before tax.44m. INR bn 17.77 Net Profit.87 0.79 35.58 7. While the company’s products have found favourable response from premium segment OEs. Birla Corporation has a net installed capacity of 0.95bn (€309. green wood and resinated felt. INR bn NA 5.42 15. 0bn industrial conglomerate. The company exports 30% of its production to 43 countries. Marketing Products Flaps. 2240 0192. Birla Tyres has an installed capacity to manufacture 2.1 million tyres. UK. Afghanistan. rear tractor. Kesoram Industries. Kesoram Industries does not publish separate financial statements for Birla Tyres. South Africa. 2. BTL expects the tyre to offer improved mileage savings of 10 to 15%. Birla Tyres has been making progressive investments to tap the rapid radicalisation in the commercial vehicle segment. Birla Tyres commenced operation in 1992 with the initial capacity of one million tyres per annum from a facility in Balasore (Orissa. 2240 4617 Fax: +91 33 2247 9074. 31 March 2008) in 2008. Birla © SupplierBusiness Ltd 2009 125 . launched XPL Tyre which was pitched as the most expensive tyre in the country. Outlook Birla Tyres is one of the five large tyre manufacturers in India. 31 March 2008) Employees c.1 million flaps per annum at its Balasore plant. ISO 14000 and QS 9000 certified. +91 33 2240 5132 Internet: http://www.com Senior Officers BK Birla.The Indian Supplier Report Birla Tyres Automotive tyres. Plants Orissa (1) Sales INR 12. tubes. tubes and flaps. The company manufactures truck.000 New Product Developments In December 2002. Investments In June 2007. Chief Technical Executive Ajay Uppal. Africa.87. 68% of BTL’s output caters to the commercial vehicle segment which is aligned with the industrial trend of 70%. The company has also bagged the TPM excellence award from the Japan Institute of Plant Maintainence. North America.4 million tubes and 1. 1. The company’s product range spans from lug. etc. The company also serves various state transport units. BTL exports a third of its produce to over 43 countries like Bangladesh. BTL. Birla Tyre’s parent company announced an INR7bn project for establishing a greenfield manufacturing facility at Uttarakhand Contracts Birla Tyres supplies to Tata Motors on a Just-In-Time basis. Birla Tyres is a non-listed entity of the BK Birla Group owned Kesoram Industries. Certification BTL’s manufacturing facility is ISO 9001. Middle East. semi lug and rib pattern for various segments of the Indian road transport. tyres Recent Developments Corporate strategy In recent years. light truck. hence being the heaviest load carrying tyre. 2247 8516.46bn (€196. India). The tyre has a load carrying capacity of 18 tonnes and above. seventy four depots and 2000 dealers. As the momentum is still dominant towards the commercial vehicle space owing to the consumption pattern of the Indian tyre industry with over 70% of the tyre shipments being cornered by commercial vehicles. Vietnam. BK Birla group Birla Tyres Limited (BTL) is amongst the youngest of all major tyre manufacturers in the Indian market. 2240 4616. tubes and flaps Address Birla Tyres Limited Shivam Chambers 53 Syed Amir Ali Avenue Kolkata-700 019 India Part of the US$2. Tel: +91 33 2247 6513. Birla Tyres has diversified from its initial offerings which restricted it to the commercial vehicle segment to a supplier of steel belted car and light commercial vehicle radials.birlatyres. Financial Overview During the financial year ended 31 March 2008. Philippines. passenger bias and passenger radial tyres.46bn (€196. Vice President. BTL has built a strong domestic distribution network of five regional offices. Joint-ventures Birla Tyres has a technical tie-up with Pirelli. Chairman Amit Chowdhury.87. Birla Tyres generated sales worth INR12. © SupplierBusiness Ltd 2009 126 .The Indian Supplier Report Tyres has managed to maintain a steady position in the market despite a strong challenge from the Chinese tyre imports. Post Box No 3000. which is its flagship company in India.The Indian Supplier Report Bosch India Car multimedia. clutch plates. brake systems. industrial equipment. Bosch Rexroth India Ltd: It was founded in 1975 and supplies systems and services for drive and control technologies to various industrial and mobile applications. Gasoline Systems. Bosch supplies to all major vehicle manufacturers including Ashok Leyland.800 employees and manufactures conventional braking systems and components for passenger cars. multi-cylinder inline and distributor pumps. miniature lamps. Managing Director Products Air filters. The automotive segment is divided into four divisions: Diesel Systems. Hyundai Motors. Currently. Bosch has been identified as Bosch’s center of global competence for single cylinder pumps. specifically on IT functions. Mahindra & Mahindra and Tata Motors.boschindia.com Senior Officers Dr A Hieronimus. Car Multimedia and Automotive Aftermarket. The company derives about 17% of its sales from exports. diesel fuel-injection equipment. Bosch has setup extensive development facilities in India to cater to its global product development programs. fog lamps. Bosch has built a strong presence in India. Hosur Road.900 employees and is Bosch’s largest software development centre outside Germany. horns. Further. With its core product mix of fuel injection systems and brakes. electronic systems. Bosch Group in India comprises of the following four subsidiaries: Bosch Ltd: Robert Bosch GmbH owns 69. Bosch’s product range is classified into two segments . the company undertakes CAD (Computer Aided Design) projects for Bosch Rexroth AG. diesel filter inserts. Initially setup as Mico in 1951 and presently India’s largest auto component manufacturer the company was renamed to Bosch Ltd in 2008. gasoline systems and spark plugs Address Motor Industries Company Ltd.automotive and non-automotive. Blaupunkt car audio system. automotive relays and gear pumps. Chakan (Maharashtra) and Manesar (Haryana). Bosch is the largest manufacturer of diesel fuel-injection systems in India with four facilities. two-wheeler head lamp assembly. Its products include diesel fuel-injection systems. glow duration units. Blaupunkt car multimedia systems and Bosch automotive products. lube oil inserts. tractors. automotive accessories. ignition coils. Tamil Recent Developments Corporate strategy In recent years. halogen bulbs. voltage regulators. electric power tools. Bangalore 560030 India Bosch Limited is the largest automotive supplier group in India. Bangalore 560 095 India Tel: + 91 80 5757 4545 Fax: +91 80 2508 1004 Internet: http://www.57bn (€63m. 31 July 2005) in the financial year 2005. two and three wheelers in its facilities in Jalgaon (Maharashtra). spark plugs. Tel: +91 80 22220088 / 22992111 Fax: +91 80 2227 2728 Internet: http://www. Bosch holds 95. Maharashtra. Its flagship Motor Industries Company is the leader in diesel fuel-injection systems (75% market share). Ford India. Bosch Chassis Systems has 1.boschindia. it is a leading manufacturer of hydraulic brakes in India. stop and tail lamps.com Address Robert Bosch India Limited 123 Industrial Estate. Maruti. hydraulic gear pumps. auto electricals. spark plugs. The company achieved sales of INR3. The company was founded 1982 and in 2005 was acquired by Bosch which now owns 80% stake in the company. Hosur Road Koramangala. glow resistors. Bosch has also been mandated to supply to the Tata Nano and will lend considerable to the company as the Ultra © SupplierBusiness Ltd 2009 127 .starter motors and alternators. festoon lamps. Robert Bosch India Ltd: It is a wholly-owned subsidiary of Robert Bosch group in India. Eicher Motors. automotive electricals. diesel fuel injection equipment. glow plugs. The company develops software and engineering solutions for all global business units of Bosch group. Rajasthan. Robert Bosch India Ltd has a facility in Bangalore with 2.73% stake in Bosch Ltd. one each in Nashik (Maharashtra) and Jaipur (Rajasthan) and two in Bangalore (Karnataka). spark plugs (62% market share) and engine components. V-belts. Bosch Chassis Systems India Ltd: Formerly known as Kalyani Brakes Ltd.5% stake in the company and employs 300 people. Chairman V K Viswanathan. Bosch was nominated by Mahindra and Hyundai as the supplier for their common rail system supplies. wiper blades Plants Karnataka. Bosch Chassis had a joint-venture with Brembo SpA. 31 December 2007) Employees Bosch Limited: 10. Treto (Spain). Bosch announced its plan to invest INR10bn (€17. manufacturing and selling DC motors and systems for wiper. The company has also expanded its presence in the automotive electrical market in India by introducing drives and motors for wiper systems and HVAC systems. 31 December 2005) in its Indian subsidiary Bosch to produce and supply hydraulic systems.8bn (€737.5bn (€97.5m.38m. and the aftermarket in Karlfsruhe (Germany). Bosch commenced supplies of its diesel common rail systems for the Mahindra Scorpio 2. Investments In April 2006. 31 August. In February 2005. engine cooling and window lift applications in India. In August 2004. Bosch has also been exporting injection system components to its international supply network.8bn (€33. The Bangalore facility produces diesel common rail systems while the Nashik plant currently makes injector body. 31 December 2004) for the development of improved capsule packaging for main components of its fuel-injection System. 2004) in Bosch upto 2008. 31 August. In January 2006.9m. The company was previously a joint-venture between Kalyani Group and Bosch. Bosch opened its Naganathapura export-oriented plant near Bangalore. Sales INR42. Bosch formed a 51:49 joint venture with Igarashi Motors India Ltd established a joint venture for developing. 2004) between 2004 and 2007. Bosch increased its stake in Kalyani Brakes from 40% to 80% and renamed the company to Bosch Chassis Systems India Ltd. oil. The joint-venture will start production by mid 2006 with 350 employees at an investment of €6m. In March 2005. HVAC. 30 April 2006) to manufacture common rail system at it Nashik plant in Maharashtra (India).000 ( December 2007) © SupplierBusiness Ltd 2009 128 .1m.67m. In July 2005. Contracts In 2006. Bosch announced its plan to invest INR5. Previously. Bosch announced an investment of INR1. This division manufactures a wide range of auto components and accessories for the domestic and export markets. air and cabin filter systems for the domestic and export market.5m.6 Turbo program. Acquisitions In July 2005. In December 2004. 31 August 2004) has been invested in the Bangalore and Nashik facilities. Bosch announced its plan to invest in expanding Bosch Diesel Service Workshop network across the country. Bosch Group announced its plan to enhance investments in India to INR18bn or around €325m between 2005 and 2008. armature body and valve set for exports only and in the second phase will produce injectors for the domestic and export markets.7m. This amount extends the previously announced investment plan of INR10bn (€17. Of this amount. The company supplies common rail system to Maruti Suzuki diesel engine facility at Haryana (India). Bosch began supplies of hydraulic systems to Maruti Udyog. Goettingen (Germany). The company announced the previous investment plan in August 2004) In 2005. These are exported to Robert Bosch alternator plants in Cardiff (UK). In April 2003. called KBX Motorbike Products Pvt Ltd which was later merged into itself while Brembo continues to contribute product licences and technology. Bosch Bosch formed a 50:50 joint-venture with Mann+Hummel GmbH to develop and produce fuel filter systems. Joint-Ventures In February 2008. A special focus will be on modern diesel technology apart from investments in other areas in general. Bosch plans to strengthen its automotive aftermarket division by setting itself a target of 20% growth year on year primarily by expanding the network of its workshops under the Bosch Car Service brand. This unit manufactures various types of regulators used in alternators for light and heavy commercial vehicles in Europe and other countries. Bosch invested INR40m (€0. INR550m (€9. South Africa.085 (December 2007) Group: 18.The Indian Supplier Report Nadu Low Cost Car concept is being adopted by atleast four OEMs. 09m.796.000 units by 2013 and has invested heavily to localise production for critical components like injectors. New Product Developments Bosch has a R&D centre built over 10. € m 147. 31 December 2007). an increase of 32.33 125.88 41. Bosch announced plans to introduce Denoxtronic technology for heavy commercial vehicles in India by 2010 when Euro IV norms come into effect.209.04 579. nozzles and injectors for the Bosch group. Bosch introduced its diesel common rail system in the Indian market. This growth was attributed to an increase in demand from the commercial vehicles and tractor segments for injectors and drives from the passenger car segment. It is responsible for the development of various types of pumps. INR m 6.10 5.22 405.70 3.60 6. Bosch launched its range of engine cooling systems in India. especially since the company was only selling wiper blades in India.1% compared to previous year’s sales of INR37. The profit before tax was reported as INR8.000 square metres employing 270 engineers. Financial Overview In the financial year ended 31 December 2007.480.57 105.84bn (€650m.15 64. It spends about 2% on its R&D activities.37% compared to INR6.56bn (€147.97m.90 6.55 344.90 19.60 2. In October 2005.38 650.466.626.92 71.67 93. 31 December 2006) in 2006.10 4085.38m. The company’s rollout of electrical drives and washer system will expand its product mix considerably.400.80 6.092. Robert Bosch India is an ISO 9001 and CMM Level 4 organisation.287. INR m 8.49 Profit before tax.05 Operating profit.5m. In February 2005. The company will commence supplies from its Naganathapura plant by the third quarter of 2006.430.09 97. INR m 42.80 30.97 94. € m 177.50 4876.50 Gross sales. © SupplierBusiness Ltd 2009 129 .7 Profit before tax.17% to INR6.15m.168.260.559. Certifications All four plants operated by Bosch are TS 16949 and IS0 14001 certified. INR m 10. Year 2007 2006 2005 2004 2003 Year 2007 2006 2005 2004 2003 Gross sales.48 111.09bn (€104.10 5.00 3.696. The net profit increased 11.30 37.00 8.48bn (€94.597. Bosch announced that it will introduce electronic diesel control systems in India. In January 2006. 31 December 2007) from INR5.40 Net Profit. an increase of 13.05 85.50 5.891. €m 737.20 Outlook Bosch anticipates the common rail system market in India to expand ten fold to 600. With Hyundai and Mahindra as long term customers. In August 2004.9 Operating profit. 31 December 2007). the company has effectively cornered a significant share of this market.25 144.62 Net Profit. 31 December 2006).47bn (€111.The Indian Supplier Report The company supplies diesel common rail system for the Hyundai Accent and Elantra models.350.90 24.747.8bn (€737. €m 104.33 62.836. 31 December 2006) in 2006. net sales of Bosch was INR42. TRW. BIL has increased its foundry division capacity from 60. seals. Following its strategy of widening its supply footprint. Executive Director of Foundry Division P Krishna Kumar. Marketing V Narasimhan.. In its bid to leverage existing OE relationships.03.4m. BIL commissioned a new manufacturing unit in the state of Uttaranchal where two of its principal domestic customers had setup manufacturing units. master cylinders. Foundry Division: Manufactures permanent mould die-castings. brake and clutch hoses. The company generates sales of over 60% from the domestic OEM market. Tamil Nadu. Meritor and Bosch. Ashok Leyland. TVS and Volvo. The assembly units are located at Pune. Executive Director of Brake division Badri Vijayaraghavan.200 Recent Developments Corporate strategy Brakes India is registering substantial growth with supplies to its wide client base. © SupplierBusiness Ltd 2009 130 .080 metric tonnes per annum (MTPA) to 71. Executive Director. Brakes India is focusing solely on international OEMs and high quality conscious customers. BIL's customers include Arvin Meritor. Sundram Clayton to manufacture anti-lock braking systems (ABS) and anti-spin regulation (ASR) for light commercial vehicles. heavy duty brakes. three-wheeler and small four wheeler platforms. DaimlerChrysler. clutch fluid. BIL has four brake manufacturing facilities and three assembling units in India. Maharashtra. valves. Business development. Polymers Division: Manufactures engineered plastic compounds for various applications. Brakes India (BIL) began operations in 1962 as a joint-venture between T V Sundram Iyengar and Sons and Lucas Industries Plc. Investments In 2007. to both overseas vehicle manufacturers and replacement markets.07) Employees c. Uttaranchal The company supplies a major part of its Grey Iron and SG (Ductile) Iron castings to TRW. Karnataka. BIL is increasing its presence by adding supplies to two-wheeler. Toyota. BIL exports its products. Honda. while the rest is from exports to over 35 countries. wheel cylinder assemblies. Eyeing intense competition from Chinese and Taiwanese products in the overseas aftermarket. Halol and Gurgaon. including hydraulic brake and clutch cylinders. UK. tractor brakes. grey iron and SG castings using the Disamatic process. The company commenced exports of brake components in 1968 and currently exports to over 35 countries. Hindustan Motors. General Motors. Bosch. Swaraj Mazda. On a selective basis. trailer brakes for exports. BIL has tied-up with group company. brake pads. Ford Motor India. 3. The company has an existing capacity of 5m brake assemblies per annum. BIL commissioned a greenfield brake assembling facility at Uttaranchal for supplying to Tata Motors and Mahindra. hoses. Products Boosters. Maruti Suzuki. kits. calliper pistons and lined shoe assemblies for various passenger cars and commercial vehicles manufacturers. 31 March 2007) (Year to 31. Escorts. master cylinder and booster assemblies. Haryana. TAFE. Divisional ManagerOperations Brakes India is a subsidiary of the TVS group with a market leadership in brakes and castings for automotive and nonautomotive applications..brakesindia. brake assemblies. Tata Motors. radiator coolant SG castings & engineered plastic compounds. Eicher Motors. wheel cylinders Plants Gujarat. USA) to manufacture braking equipment for automotive and other applications.com Senior Officers R Mukundan. The company consists of the following divisions: Brakes division: Manufactures brake products including. Chennai-600 050 Tel: +91 44 26258161 Fax: +91 44 26257844 Internet: http://www. calipers. drum brakes for commercial vehicles. Fiat India. (now merged into TRW Inc. Sales INR 5bn (€79.000 MTPA. Mahindra & Mahindra. L&T.The Indian Supplier Report Brakes India braking systems and ferrous castings Address Brakes India Ltd Padi. Outlook Brakes India is leverages its existing OE relationships for new business in its brakes division. For its foundry division. BIL announced orders worth €4m for its foundry division from Volvo Powertrain for engine components. BIL has the contract to supply 50.4m.The Indian Supplier Report Contracts In May 2006.000 brake assemblies per annum to the Maruti Swift program. the company's sales was reported at INR 5bn (€79. In October 2002. BIL began supplies of disc brake system to TVS's Fiero Classic motorcycle. BIL is bidding aggressively for export orders originating in Europe as local European foundries are losing cost competitiveness. Financial Overview In the financial year ended 31March 2007. Certifications Brakes India was accredited with ISO 9002 certification in 1992 for the foundry division and with ISO 9001certification in 1993 for the brake division. To this end. BIL announced orders worth €9m for its foundry division from Bosch for fuel injection components. The engineered plastics compound business holds promise as content per vehicle of plastics increases in India where its use is still lower compared to developed countries. BIL’s move to follow Tata and Mahindra to Uttaranchal is well timed and will reap benefits for the company when production at the new locations is ramped up. BIL is a private company and not under obligation to publish its detailed financial results. 31 March 2007). © SupplierBusiness Ltd 2009 131 . Also in May 2006. India) plant. At the same time.com Senior Officers Lord Swaraj Paul. The four plants were set up in Uttar Pradesh (Greater Noida). Investments In February 2006. Managing Director Madhu Bhalla. This strategy is aimed at widening its customer base beyond Maruti and diversifying into new component areas. Chairman AK Asthana.74m. Gurgaon 122015 India Caparo Maruti is a Tier 1 supplier of automotive components and one of the three major sheet metal component vendors to Maruti Suzuki.07) Employees Group: c.25bn (€61. Caparo announced investments of INR3bn (€51m. Caparo Group has successfully added Tata Motors as a key client by securing a sole supplier contract for a commercial vehicle chassis. Tata Motors. established new product lines and opened more assembly operations to serve new clients. Madhya Pradesh (Indore). Caparo announced investments worth INR3.caparomaruti.9bn (€32. dash. 28 February 2006) to set up four facilities in Chennai. 31 December 2007) (Year to 31. Scooter India and Hero Honda. In February 2005. quarter inner assemblies. Contracts Caparo Maruti supplies Maruti and GM through its Gurgaon and Halol facilities respectively. In 2004. The company has also moved to a new level by tapping Hyundai as a partner for its bus manufacturing operation due for launch in late 2009. Moreover Caparo engineering has been awarded a contract for supplying close to 100 medium and small-sized sheet metal components by GM India. Tata Motors.12. Products Chassis. Tel: +91 124 5016 825-828 Fax: +91 124 5016 829 Internet: http://www. Rajasthan. bonnet and tailgate assemblies for the Chevrolet Tavera. 4. Honda Motorcycle. cowl upper assemblies. an aluminium foundry and a research centre for tool manufacturing and a steel forging unit.8m. Caparo formed a joint-venture with Hyundai Motors to assemble and market (CKD) luxury buses in India. 28 February 2005)-4bn (€69m. The investments include a manufacturing facility for metal automotive components. Caparo has maintained its share of business from Maruti and has progressively been awarded supply contracts for new programs. JCB and other two-wheeler manufacturers. sheet metal components Plants Gujarat.500 (2008) Caparo Maruti: c. Sister concern Caparo engineering supplies skin and inner panels to Eicher for its HCV’s and LCV’s. Its customers include Maruti Suzuki. Certification Caparo Maruti’s facility is ISO 14001:1996 certified. Uttar Pradesh Sales Caparo Maruti : INR 1. Madhya Pradesh. General Motors. besides it also undertakes hemming and welding processes for door panels from its Indore (Madhya Pradesh. General Manager Recent Developments Corporate strategy In recent years Caparo has expanded its customer base beyond Maruti. Maruti JV Complex. The company was formed in 1994 as a joint-venture between the Caparo group (UK) and Maruti Udyog. It supplies door. Joint ventures In April 2008. Rajasthan (Chipanki) and Haryana (Bawal) to manufacture fasteners for the automotive and commercial vehicle industries.Gurgaon Road. Delhi. Haryana (3). The new plant also supplies Hero Honda. 28 February 2005) to establish four automotive manufacturing plants in India. door assemblies. the Bawal (Haryana) based plant was inaugurated to primarily supply sheet metal components for the Maruti Suzuki Swift model. 750 (2008) © SupplierBusiness Ltd 2009 132 . It operates one of the most advanced stamping facilities within the Maruti associate vendor group.The Indian Supplier Report Caparo Maruti Sheet metal components Address Caparo Maruti Ltd Plot 7. Outlook Caparo’s ambitious growth plans in India have propelled it from being a small supplier to Maruti to a leading supplier with supply contracts with several OEMs. a die spot press of 10 ton hydraulic die spotting press with a bed size of 4. a weld shop with projection welding stations.5m. © SupplierBusiness Ltd 2009 133 . Caparo Maruti also has a CAD modelling shop equipped with Pro-E 2001.6m. profile projector. Additionally the company has a quality lab with an Ericsson cupping tester. 31 December 2007). sales of Caparo Maruti were estimated at INR1. Financial Overview In the financial year ended 31 December 2007. While Caparo’s sole supply contract for commercial vehicle chassis with Tata Motors has given the company a significant headway in strategic presence. guns & MIG brazing.5x1.8m. Hyperform V6. The company is privately held hence is under no obligation to publish its financial statements. Tata’s production cuts following the demand slump have created intense margin pressures for the company. universal testing machine. a hemming shop consisting of three hemming presses with a battery of spot welding jigs.0 with LS-Dyna.9bn (€32. draw-arc welding stations and spot welding stations. Caparo is likely to strengthen its presence in India with its extensive supplies to the upcoming Tata Nano project while volumes from GM remain small.74m.The Indian Supplier Report Infrastructure Caparo Maruti’s infrastructure consists of a press shop with FAGOR made fully-automatic press line consisting of a 800 ton press and three presses of 400 ton each with a bed size of 2. romer make 3D portable measuring machine capable of measuring with-in a sphere of 3.0x2. Secura. Maestro and Stamina are some of CEAT's popular brands. In 2007. Bajaj Auto. the CEAT brand is owned by Pirelli except in India where it is owned by the RPG Group. The company entered India in 1958 in a partnership with the Tata Group. tractor tyres. L&T. In the domestic market CEAT enjoys a 55% share in the light truck tyres segment. Worli. Vice Chairman Paras K Chowdhary. At the moment CEAT imports passenger car radials and commercial vehicle radials.ceatyres. Formula1.com Senior Officers RP Goenka. LCV tyres. TELCON and TVS.000 dealerships and exclusive outlets branded 'CEAT Shop'. 463 Dr. CEAT supplies tyres to OEMs like Ashok Leyland. and 22% market share in Philippines. Swaraj Mazda. Egypt are some of the destinations where CEAT tyres are sold. radial truck tyres. Chairman HV Goenka.35bn (€368. At present CEAT Limited enjoys a 14% market share in tyre exports made from India. South Asia Tyres (SAT) to concentrate on radial tyre production but ended up buying out CEAT's holding in SAT due to managerial differences. Scooters India. Force Motors. CEAT India has retail chain of about 3. 31 March 2007) Employees c. USA. Managing Director G Chandrasekharan. Subsequently the company was taken over by the RPG group in 1982 and was further rechristened as CEAT Limited in 1990. To this end CEAT has sub-contracted production of low value added tubes. followed by truck and bus tyres (20%). CEAT expanded its global sales network to 110 countries. two-wheeler tyres Plants Mumbai (1). CEAT Limited was established as CEAT (Cavi Electrici Affini Torino) International. CFO Products Conventional truck tyres. Piaggio. CEAT has a 64% market share in Singapore. two wheeler and three wheeler tyres. JCB. The company has a strong presence in India and abroad with exports reaching 110 countries worldwide. Maruti Udyog. The company is building its core strategy around the creation of speciality products for niche segments and taking them to global scale. threewheeler tyres. The company has been exporting since 1964. Pakistan. Ceat Mahal. CEO K J Rao. The company now has a sales presence in South America.215 (Year to 31. Mahindra & Mahindra. slabs. Annie Besant Road. CEAT had established a 50:50 jointventure with Goodyear under the name of. 22% in UAE. © SupplierBusiness Ltd 2009 134 . HMSI. Tata Motors. accounting for 47% of its total production. CEAT India has been trying to forge a technical alliance with Pirelli from which it currently sources some of its passenger and truck tyre requirements. Middle East and Africa. India CEAT is one of India's largest manufacturers of tyres. HMT. TAFE. CEAT is also planning a facility for speciality tyres. 5. North America. BEML. Eicher Motors.08) Recent Developments Corporate strategy CEAT has been trying to push up the market share of its premium products to mitigate the rising input costs. Nigeria. Mumbai 400 025.68m. Hero Honda. Vietnam. four-wheeler passenger car tyres. Globally. passenger cars (16%) and the balance is held by industrial and off-road tyres. Bangladesh. Two-wheeler tyres account for 47% of the company's production at present. Tel: +91 22 24930621 Fax: +91 22 24974710 Internet: http://www. With an increasing demand for truck and bus radials (TBR) and passenger car radials (PCR) in the domestic market the company is planning to localise the production with a new facility. Europe. Caterpillar. tubes and flaps Address RPG Enterprises.The Indian Supplier Report CEAT Tyres. Buoyed by the improved financial performance with the sub-contracting arrangement CEAT sourced 22% of its sales by tonnage through such arrangements in 2007.03. Scooter and two-wheeler tyres are the most prominent sectors in which CEAT operates. In the nineties. Nashik (1) Sales INR21. Iran. industrial and OTR tyres. 80% growth in sales to INR23. INR m 1.07 -0.5m (€6. Tata Motors.7 -77. 31 March 2007) in previous financial year.89m.6 2008 2007 2006 2005 2004 Year Net sales. € m 23. CEAT India reported 8. TAFE.45 261. Scooters India. JCB.52bn (€26. CEAT Kelani commissioned a radial tyre facility to cater to the Sri Lankan market. Force Motors.91 0.33 10. The company is on the lookout for a base in the region and plans to use it as a low cost supply base to other countries.35 17.52 0. CEAT India acquired Rado Tyres (Kerela. L&T.970 609.37 8.47 15.63 2008 2007 2006 2005 2004 © SupplierBusiness Ltd 2009 135 .61m.78m.83 1.6m.4 Net Profit. Improvements in profits were attributable to scaling down of existing inefficient production setup. Joint-ventures CEAT Kelani was formed in 1993 as a joint-venture between Kelani. CEAT proposed to de-merged its tyre and investment businesses and a separate company was floated for the investment arm with the rational of improving operational efficiencies and performance of the core business. Hero Honda. The company's operating profit increased by 86.37 270.The Indian Supplier Report Presently CEAT India sources some of its raw material requirements from China.41 Profit before tax. Acquisitions In 1998.18% to INR2. Mahindra & Mahindra.32 16.68 325. Swaraj Mazda. Divestments In 2007. and an increase in demand for high value truck and bus radials and passenger car tyres.23 21. € m 45.970m (€31. commercial vehicle segment. BEML.91 13. 31 March 2008) as compared to net profit of INR392.35bn (€368. Sri Lanka and CEAT India.00 Net Profit. 31 March 2007) in corresponding period last year. INR bn 2.2m (€10.60 6. The acquisition added to CEAT’s two-wheeler strength with increased volumes.90 26. Caterpillar.89 368. 31 March 2008) as against a profit of INR609.40 Profit before tax. Year Net sales. CEAT India reported pre-tax profit of INR1.5 3. The company manufactures tyres for the industrial.68m. €m 368. an increase of 223.52 0. Maruti Udyog. CEAT-Kelani added a new dual extruder line to its facility. In 2004-05. TELCON and TVS.52m. The restructuring is expected to be completed by December 2007.33m. 31 March 2007) in 2007. Contracts CEAT supplies tyres to OEMs like Ashok Leyland.32m.7 140.01 Operating profit.490m (€23. Financial Overview In the financial year ended 31 March 2008.7 -18. India). 31 March 2008) in financial year 2008 as compared to INR1. INR bn 23. INR m 1.2 49.23bn (€368. Net profit reported increase of 279% to INR1. 31 March 2007) against INR21.78 0. 31 March 2007) it incurred in 2007. HMT.93 -1.2 428. Eicher Motors.33 2. Bajaj Auto. HMSI. Piaggio. increased sub-contracting of low value added tyres and allied products. €m 31.79 1.61 26.490 392.37%.83bn (€45.68 Operating profit. Investments In June 2007.28 14. the spurt in the prices of oil has had a considerable impact on the prices of crude derivatives CEAT has managed to improve its performance over the past year with an increased focus towards higher value added products. While. It is now the fourth largest player in the market. The company’s move towards establishing sales operations across the globe are a move towards its strategy of developing products for the global market. CEAT has made significant gains in the Sri Lankan tyre market where it has emerged as a major player.The Indian Supplier Report Outlook CEAT has lost its leadership position in the Indian tyre market in terms of volume. © SupplierBusiness Ltd 2009 136 . 72m.12% holding. Chairman & Managing Director Pradeep B Chinai. Ceekay Daikin supplies to Bajaj Auto. Lombardini. Ceekay Daikin has one facility each in Aurangabad (Maharashtra. with its supplies being used for all the models in the Maruti Suzuki stable. medium commercial vehicles and three wheelers in India. Uttar Pradesh Corporate strategy In view of the increasing demand from automotive customers in India. The company eyes a 20% growth in sales in 2009 and plans to increase its presence in the aftermarket. The Aurangabad plant has a work force of 353 people while the Noida unit is supported by 104 employees.000 sets to Toyota Kirloskar in the first year. Tel: + 91 22 2202 0849/ 8526 Fax: + 91 22 2204 3939 Internet: http://www. Ceekay Daikin commenced supply of clutch sets to the Toyota Innova program. At the moment Ceekay Daikin realises 3% of its revenues from exports. Managing Director Saurabh Kothari. expecting the demand to subside.ceekay-daikin. Swaraj Mazda. GM India. Contracts In 2005. Tata Motors. clutch cover assembly. clutch kits Recent Developments Plants Maharashtra . The company shipped around 50.com Senior Officers Mahesh B Kothari. Ceekay Daikin is investing INR 240m (€ 4. Ceekay Daikin has started sourcing non-critical press and machining supplies from vendors to reign in input costs. Honda Siel. Swaraj Mazda and Eicher Motors. Ceekay Daikin was incorporated in 1973 and commenced production in 1977 after Exedy Corporation (Daikin) became a collaborator and an equity partner with a 32. HM. The Aurangabad facility manufactures 1m clutch disc assemblies per annum and 0. which acts as an assembling unit for shipment to clients in the Northern cluster. 178. The company aims to increase this to 15% by 2010. Executive Director Products Clutch components. light commercial vehicles. 31 March 2006) expansion of its Noida and Aurangabad facilities. 460 (31 March 2008) © SupplierBusiness Ltd 2009 137 .05bn (€ 15. Managing Director Akira Hirai. 31 March 2007) for the 1m unit per annum facility which is scheduled to commence supplies towards end 2008. Eicher Tractors. 31 March 2008) Employees c. Maruti Udyog is the largest customer of Ceekay Daikin. The company has identified niches in the tractor segment where it is a small player and two wheeler (motorcycle) segments for fresh orders. In 2006. India) and Noida (Uttar Pradesh. VST Tillers Tractors.95m.Force Motors. Ceekay Daikin is improving its sales by focusing on OEM supplies for new orders. Investments In March 2007. Punjab Tractors. Ceekay Daikin is expanding its production facilities and upgrading its infrastructure.6m units of clutch cover assemblies per annum. clutch disc assembly. Ceekay Daikin announced the setting up of a two wheeler clutch manufacturing unit at its Noida (Uttar Pradesh) facility for supplies to a motorcycle program. Ceekay Daikin had earlier decided against increasing production capacity. India). Toyota Kirloskar.Babubhai M Chinai Marg Mumbai – 400 200 Maharashtra India Ceekay Daikin is a leading supplier of clutch sets and allied components for passenger cars. Sales INR 1. The company commands a 27% market share in OE supplies and has a significant presence in the Indian aftermarket. The cost cutting exercise has been mooted to tackle the rising steel prices.The Indian Supplier Report Ceekay Daikin Clutch disc assemblies and clutch cover assemblies Address Ceekay Daikin Limited NMK International House 4th Floor. Ceekay Daikin announced plans of a INR 200m (€ 3.14m. 12 Net sales.7% to reach a figure of INR 115. 31 March 2008) compared to sales worth INR 898.33 780.05bn (€ 15. the company has seen a drop in market share with aggressive competition from domestic clutch suppliers.25 7. Net Profit for the fiscal 2008 was at INR 26. Eicher Motors and Swaraj Mazda.The Indian Supplier Report In 2004.42m.80 1. The entry of Nissan could bring additional business for Ceekay Daikin due to Exedy Corporation’s relationship with Nissan in Japan. 31 March 2007) in 2007.68 39.54 816.09 0.12 Profit Before Tax. Profit Before Tax decreased by 19.51 16.83m. © SupplierBusiness Ltd 2009 138 .66 898.51m.42 0. The Uttar Pradesh facility also has ISO 14001 and OHSAS 18001 accreditation.62 Profit Before Tax. INR m 26. GM India began sourcing clutch sets for Chevrolet Tavera.45 14.08 14. €m 15. Ceekay Daikin supplies to the Honda Accord program. Ceekay Daikin commenced supply of clutch sets to Mahindra and Mahindra with volumes of 3. a growth of 11. The company’s export foray is in a nascent stage at the moment.68 52.74 26.57 Operating Profit. 31 March 2007) in 2007.5 134.50 1. The supplies are used for all M&M programs except the Scorpio.3%.69m. Ceekat Daikin supplies to Lombardini India for the Piaggio three wheeler set up. The company also supplies to Champion three wheelers.14 8.98 0.5 Net Profit.18 101.43 86. Ceekay Daikin supplies to all programs in the Maruti Suzuki stable.34 863.68m (€ 0.08 2. In 2005.69 0.36m (€1. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales.34m (€ 15. Ceekay Daikin generated sales worth INR 1.500 sets per month. 31 March 2008) compared to a figure of INR 39. Ceekay Daikin won the supply contract for clutch sets to the Honda Civic program.80 1.33 58.95m.83 2. INR m 115. € m 0. The company also caters to Bajaj Auto for its three-wheeler products.46 0. Certifications Both facilities run by Ceekay Daikin are accredited with TS 16949 status.95 15.42 24.14 Outlook While outsourcing of non-critical operations has helped Ceekay-Daikin improve its profitability.36 120. Ceekay Daikin continues to be burdened by high cost of capital borrowing and interest payments.43 0.54 Operating Profit.2 46. Of the 2000 sets Ceekay Daikin supplies to GM India for the Tavera every month. €m 0. In 2004-05. Financial Overview During the financial year ended 31 March 2008. € m 1.15 Net Profit.68m (€ 0. INR m 37.59 0. 31 March 2008). The company also supplies to LCV programs run by Tata Motors. INR m 1004. 30% from tractors and 25% from passenger cars. The company is using Pioneer's distribution facilities and commercial warehouses in USA. In the financial year 2007. Clutch Auto is now focusing on expanding its product portfolio.08) Employees c. UK. Iran. Products of the joint-venture Plants Haryana Sales INR 2. Under the terms of the agreement Clutch Auto will supply patented products to ITEC. The company is focusing on passenger cars. dual clutches. The company exports to Australia. 31 March 2008) (Year to 31. pressure plates. The joint-venture will supply clutches and related component for the US tractor market and will allow Clutch Auto to enter into the North American market. rollers. springs & yokes. Currently exports account for nearly 28% of the sales. Sri Lanka. Clutch Auto had acquired the clutch business of Pioneer Automotive Products in the USA to enter into the North American market. Bajaj Auto. where it continues to focus on the heavy-duty clutch segment. USA and Venezuela. Clutch Auto has growth projections at a CAGR of 45% up to 2010 which will primarily be met by export growth. Pakistan. Chairman Vijay Kishan Mehta. Chile. cerametallic wet and dry clutches. clutch plates and friction discs. Acquisitions In 2005. the company accounted for 45% of sales from clutch sales for Heavy duty trucks/ LCVs. Tel: +91 11 23670501 Fax: +91 11 23670501 Internet: http://www. 2E/14.44m. New Delhi – 110055. The new joint-venture is expected to be signed by the end of April 2009. Its customers include Ashok Leyland-IVECO. Maruti Udyog. Escorts. diaphragm and coil spring clutches. Mexico. Mahindra & Mahindra. Clutch Auto has also received an approval from International Truck and Engine Corporation (ITEC) appointing the company as a supplier to ITEC’s commercial vehicle programs in NAFTA. South Africa. Clutch Auto exports its products to 40 countries across the world. JCBL. In 2005.17bn (€34. Its strategy is to use the Indian facility for cost effective production and export to the USA market using the Pioneer Clutch brand and the Fleet Pride distribution channel. New Holland. Indonesia. lever. the company has received approvals from Tata Motors and Mahindra for supplies to most of their platforms. Canada. India Clutch Auto is India's largest clutch manufacturer and exporter. Recent Developments Corporate Strategy Having gained a foothold in the North American commercial vehicle aftermarket. especially in the domestic market to spur demand. The company has developed clutches for Class 7 and Class 8 trucks in the region. Singapore.com Senior Officers KS Bhatnagar.clutchauto. with an annual production of more than two millon units. Sonalika-International Tractors and TAFE-Massey Ferguson.12. The company is developing a new range of clutches. This acquisition is helping Clutch Auto get foothold in the automotive world that encompass SUVs. Greaves & BEML. Clutch Auto aims to derive close to half of its sales from exports by 2010. Joint-ventures It was reported by the media in October 2008 that Clutch Auto will set up a joint-venture with an unnamed US-based tractor component manufacturer. Malaysia. Punjab Tractors. Vice Chairman & Managing Director Products Angle spring clutches. hubs. which it proposes to market as a retrofit arrangement for existing fleets. Eicher.The Indian Supplier Report Clutch Auto Clutches and clutch components Address Clutch Auto Limited. Passenger car and light trucks as well as the agricultural segments including tractors. Italy. Clutch Auto acquired the clutch division of US based Pioneer Automotive Products for an undisclosed amount. UAE. Egypt. 950 (2008) © SupplierBusiness Ltd 2009 139 . clutch discs. First Floor. Jhandewalan Extension. To this end. €m 2. profit before tax was reported at INR168.62 Net sales.89 Operating Profit. €m 34.16 927. Pre damp high torque disc.41 Profit Before Tax.17bn (€34. INR m 168. 31 March 2008).54m (€2.89 403. INR m 154. Engine cycles of low RPM engines are close to natural frequency of the power train." Investments In 2005. The company has already been allotted some patents by the USPTO. A release sleeve retainer ensures alignment and concentric movement vis-à-vis release sleeve assembly results in lower clutch wear. 14" Flat flywheel cast cover clutch: is a replacement for the stamped steel cover clutch. INR m 2. Clutch Auto has signed four long-term arrangements with Ashok Leyland.22 126. € m 5. Certifications Clutch Auto has been accredited with QS 9000 and TS 16949 status.27 237.64 75.68 Net Profit. Clutch Auto won a contract worth US$60m from US-based Fleet Pride to supply clutches for class 7 and 8 trucks.PDHT ™ . The company has an inhouse research and development centre. An inductive electrical sensor on the bearing cage is placed with a gap between the sensing surfaces and when the top face of the housing falls beyond a predetermined limit. Clutch wear adjustment indicator: is a device to automatically indicate when the clutch needs wear adjustment. hence while operating close to the resonance levels: high oscillation attenuation is observed in the drive lines which unless absorbed/arrested can cause severe vibration and in turn high wear and tear of drive line components.493.355. The product is a cast cover with ventilation louvers which assists in keeping the clutch cool.83 104. € m 2.64 60.68m.98 130.is a replacement for VCT-soft rate dampers and LTD clutch discs. INR m 340. net sales of Clutch Auto were INR 2. The company has applied for a patent for the product.54 215. The product can be used for Class 6 & 7 trucks & buses. Contracts In August 2005. Financial Overview In the financial year ended 31 March 2007.76 2. Additionally the company has inked an IPR confidentiality agreement with Ashok Leyland for a joint research program.44m. PDHT™ Disc absorbs engine cycles and torsional vibrations of the engine up to 4 twist angle.The Indian Supplier Report company will be sold funder name of "Pioneer Clutch Inc.32 -2.02 1.45 © SupplierBusiness Ltd 2009 140 .32 4.41 Profit Before Tax.44 Operating Profit.61 256.168. the sensor generates a signal that lights a bulb or horn in the driver cabin to indicate to him that the wear on the clutch disc needs to be readjusted. which broadly includes 90% of the truck production. 31 March 2008).75 171. The product is meant for contemporary trucks with higher torque capacity. Clutch Auto opened "Pioneer Clutch" distribution facility in Meridien (USA) to enhance service to Pioneer customers.32 Net Profit. Year 2008 2007 2006 2005 2004 Year 2008 Net sales. In the period. New Product Developments Clutch Auto has indigenously developed its line of clutches.54m. The company is lining up six new trademarks and about fifteen new patents. The company supplies clutches to the Maruti Suzuki 800 and Omni programs. 31 March 2008) and net profit at INR 154.61m (€2.46 730. 04 1.44 2. 31 March 2008) and profits of INR 500m (€ 7.43 3.67 27. Clutch Auto is also focusing on expansion.The Indian Supplier Report 2007 2006 2005 2004 40.72 2. diversification and exports plans with new product developments for the next two-three years.42 13.94m.80 16. Exports will be a major component of its sales growth while growth in profits will be achieved by improving margins at its production facility and earnings from its new product development.43 1. © SupplierBusiness Ltd 2009 141 . 31 March 2008) by 2010 at a CAGR of 45%. Clutch Auto has aimed to reach sales of INR6.96 4.65 6.25m.08 3.25bn (€99.04 Outlook The company is expecting a growth in the demand of automotive clutches in coming years and hence focussing to improve performance both in the domestic and international markets.96 4.07 -0.33 0.36 1. off-road vehicles. 31 October 2005). CEL set up a machine shop to convert castings into finished products that could be directly fitted in the vehicles. CEO Mahesh Dadlani. CEL’s strategy of partly shifting higher cost component manufacturing operations of Vege to India has helped the company in improving Vege’s earnings. 31 March 2008) (Year to 31. Greaves Cotton.83m.000 units per month. Production Products Cylinder head.000 (31 March 2008) © SupplierBusiness Ltd 2009 142 .12. The agreement includes a licence fee payable in stages and a royalty per engine extending up to five years from the date of commencement of production. CEL's domestic customers include Ashok Leyland. Lombardini. CEL announced plans of establishing an assembling unit for new engines at Bhiwadi (Rajasthan) at an investment of about INR45m (€0. Hindustan Motors.baxy.4bn (€53. The company exports around 90% of its production.htm Senior Officers Amarjit Bakshi. Mega Motors (Iran). Mehrauli . the financially-troubled subsidiary of Vege. The assembly plant has a capacity of 15. the company decided to shift its focus towards the export market. the company runs a business process outsourcing (BPO) automotive vertical. CEL signed a technical license agreement with VM Motori (Italy) to manufacture modular one. The engines are Plants Rajasthan (2) Sales INR 3. Managing Director Alok Dutta. Eicher Motors. CEL acquired the entire equity stake in Intermotor B. Eicher Engines. light and heavy commercial vehicles. clutch housing. CEL has also benefitted from its supply association with V. to enter the business of engine remanufacturing.72m. Tel: + 91 124-4107050 Fax: + 91 124-4107065 Internet: http://www. remanufactured engines Recent Developments Corporate strategy CEL’s acquisition of Vege’s European operations and the subsequent launch of the brand’s products in India has helped the company integrate its capabilities in the domestic and export markets. tractors. Gurgaon 122 002. Joint ventures In October 2005. The breakthrough came in 2001. Kinetic.The Indian Supplier Report Continental Engines Aluminium precision engine components Address Continental Engines Ltd. which works with automotive companies and does their back office processing and market promotion work.V. Mahindra & Mahindra. marine engines.M. Sales & Exports Rajiv Mittal. Piaggio (Italy) and VM Motori (Italy).com/home.000 cylinder heads a year and a 500 MT of castings. Continental Engines Limited (CEL) was established in 1983 as a manufacturer of castings. The company has recently acquired Intermotor B.Gurgaon Road. Haryana Continental Engines is a supplier of intricate aluminium cast components for automotive applications. Tower-D. Vice President.V. and entered engine remanufacturing business in Europe. Currently it operates from two plants based in Bhiwadi (Rajasthan) supplying engine parts for a wide range of applications including passenger cars. Motori as the company is increasingly pitching for similar business with other Europe based suppliers..08) Employees c. 3rd Floor. inlet manifold. 1. CEL has a production capacity of 350. crank case. when it won large orders from OEMs in Iran. Elgi Equipments. CEL has setup a new plant for this purpose in Uttaranchal. Kenmore Vikas India. stationery engines and railways. In 1995. Sona Koyo and Swaraj Mazda. Investments In 2005. Acquisitions In September 2005. It took the company a long time to establish itself in the export market. Vice president. CEL's international customers include Duetz (Germany). In 1991. Iran Khodro (Iran).. Further. transfer case. Global Business Park.and two-cylinder engines in India. 31 March 2008).or three-wheelers and power generator applications. This is largely attributed to the company’s acquisition of Vege and its arrangement with VM Motori. Nissan and Kia for specific markets.The Indian Supplier Report intended for two. Financial Overview In the financial year ended 31 March 2008.4bn (€53. Contracts CEL has the contract to supply cylinder heads to Peugeot. Continental is largely dependent on exports for its revenues while its domestic sales initiatives have had a lukewarm response. CEL has grown at CAGR of 75%. Outlook In the last five years. CEL is privately held and does not publish its financial statements.72m. © SupplierBusiness Ltd 2009 143 . CEL generated estimated sales of INR 3. Certifications CEL is a TS 16949 certified company and is in the process of getting ISO 14001 and ASHAS certifications. dcmengg.12. Now DCM aspires to win the Deming Application Prize in 2009.315m (€0. to develop a V8 cylinder block called Bowtie. Force Motors. utility vehicle and tractor sectors.The Indian Supplier Report DCM Engineering Automotive castings Address DCM Engineering Limited Post Box No. which was later spun-off into an independent company. In 2005. and GM DAT (Korea). DCM has announced plans to increase casting capacity to 1. Eicher. India DCM Engineering Products. Executive Chairman Sumant Bharat Ram.4bn (€53. SRC. cylinder blocks and housings for the passenger car. 30 September 2007). Its international customers include Hepworth Heating Systems (UK). 31 March 2008). Tel: +91 1881 501 801 Fax: +91 1881 270 807 Internet: http://www. 1. Mahindra & Mahindra and Swaraj Mazda Certifications DCM is accredited with QS9000 certification and is currently implementing TQM. Swaraj Mazda. DCM installed automatic core making systems at an investment of INR200m (€3. Products Cylinder blocks.7m. Swaraj Engines. International Tractors. Investments In 2007. Hindustan Motors. Technical Development Recent Developments Corporate strategy In recent years. GE Transportation (USA). Vice Chairman Keshav Sachdev. Mahindra & Mahindra. DCM won an order worth US$0. DCM is amongst the largest jobbing foundries in India. Maruti Udyog and Swaraj Mazda. The cylinder block is for a sports car model being developed by General Motors. Perodua (Malaysia). Mahindra & Mahindra. Ropar (Asron) 140 001 Punjab. 5. TQM Rajender Kumar Chopra. Simpson & Co. DCM's grey iron foundry is located near Ropar (Punjab) with a production capacity of 50. On its existing capacity. 31 October 2005) as part of modernisation and streamlining of its foundry operations.000 MT per year. GM. Company supplies housings to commercial vehicles customers including Ashok Leyland.000 tonnes but no developments have been made. Outlook While DCM Engineering has been expanding its plant in North India its plans of © SupplierBusiness Ltd 2009 144 .000 tons per annum. The company expects exports to account for 25-30% of its total sales by 2012. Force Motors. Maruti Udyog. Eicher Motors. Managing Director Rakesh Dhamani.7m.600. Hyundai Motors India. The foundry manufactures cylinder heads. Force Motors.700 (2008) Financial Overview In the financial year ended 31 March 2008. is a leading supplier of automotive castings.78m. DCM implemented SAP/ERP software at an additional investment of INR15m (€276. and Tata Cummins. a unit of DCM Engineering. the company has implemented several productivity enhancement tools.00.08) Employees c. Hyundai Motor India. commercial vehicle. Hindustan Motors. Punjab Tractors.26m. CFO Devinder Singh Sodhi.com Senior Officers Dr Vinay Bharat Ram. Eicher. 31 March 2006) from General Motors. Uniboring. DCM generated sales estimated at INR3.4bn (€53. cylinder heads and housings Plants Punjab Sales INR 3. With a capacity of 50. DCM's domestic customers are Ashok Leyland. DCM Engineering Products (DCM) was established in 1977 as part of DCM group's engineering division. Escorts. Contracts In March 2006. 31 March 2008) (Year to 31. VP. DCM supplies cylinder blocks and heads to Ashok Leyland. Partial relocation of production capacity would help DCM in improving its prospects with OEMs based in the southern region. the southern region would provide a better location for exports with close proximity to ports.The Indian Supplier Report expanding to Southern India have not made a significant headway. Further. © SupplierBusiness Ltd 2009 145 . Vice President. Uttar Pradesh Joint Venture: Tamil Nadu . Bangalore 560066 India Delphi Automotive Systems is a wholly owned Indian arm of the Delphi. evaporative emissions canisters. air-conditioning systems and suspension systems. climate control and radiators.0bn (€127. 5th Floor. catalytic converter systems. Joint-ventures In December 2006. electronic and safety systems. front corner modules. Dephi is now focusing on HVAC modules where it plans to triple its sales. drive shafts and drive shaft components. Uttaranchal Sales INR8. The targeted sales figures are inclusive of revenues generated through supply of components to the domestic OEMs. Delphi supplies all three mainstream automotive segments including two-wheeler. The company provides automotive solutions in the field of electrical distribution systems. Vice President. steering columns and wiring harnesses. throttle bodies Recent Developments Corporate strategy In the recent years. Delphi has established a Technical Centre which has emerged as Delphi's largest technical centre outside the US. Tel: +91 80 2841 2015 Fax: +91 80 2841 0799 Internet: http://www. HVAC module & compressors. air-lift dampers. shock absorbers and struts. steering columns.delphi. engine management systems. engine management systems.900 (2008) © SupplierBusiness Ltd 2009 146 . Delphi signed a 49:51 technical alliance "Varroc Exhaust Systems" with Aurangabad based Varroc Engineering to manufacture catalytic converters for two-wheelers and three-wheelers. Delphi TVS operates a manufacturing facility in Mannur (near Chennai. The company started aftermarket operations in 2000 offering suspension. Sales & marketing K Prabhakar. electrical/ electronic distribution systems. Fiat. half shafts. consumer electronics. 31 March 2008) Employees c. Hence. Operations Products Brazed aluminium heat exchangers. 31 March 2007) worth of sales by 2010. Its export portfolio includes: gas charged shock absorbers. drive train. Bosal Delphi supplies the passenger car OEMs in India. The company has been active on the exports front. Delphi's Indian customers comprise Maruti Udyog.99m. Exports are a key area for company’s growth. Volvo and Tata Motors. fuel handling systems. chassis. With a strong domestic demand. Bosal Delphi announced its entry into the Indian exhaust systems market with Delphi’s Gurgaon plant as its first production unit. 1. Leveraging India's low cost of manufacturing and engineering capability. Delphi has entered into collaboration with the TVS Group for diesel injection systems. A facility was set up in Pune (Maharashtra) with manufacturing support from Delphi and commenced production in the last quarter of 2006. Delphi has been increasing its presence in the Indian after market with the launch of its high end car audio and entertainment systems. Haryana (2).com Senior Officers Prashant Shah. exhaust systems. struts and half shafts in the domestic aftermarket. Delphi India complements Delphi's strong manufacturing network in the Asian Pacific region. Whitefield Road. oil filters.04m. This alliance will establish a footprint in India for catalytic converter production. Innovator Building. International Tech Park. struts. In July 2005. compressors. half shafts. Hindustan Motors.The Indian Supplier Report Delphi Electronics. Earlier. Delphi India has generated most of its sales from chassis parts. four-wheeler and commercial vehicles. Delphi targets US$500m (€374. which supplies Audio Multimedia Electronics to OEM vehicles exported out of India. Delphi plans to grow its export and outsourced R&D work. With a view to expand its presence in the country. exports and aftermarket sales. Technical Centre India. radiators. electrical/electronic architecture. front corner modules. Plants India:Karnataka . thermal and engine systems Address Delphi Automotive Systems Pvt Ltd. Varroc Exhaust System has orders from Bajaj Auto and potentially from other OEMs including Honda Motorcycle & Scooter India. Suzuki and Yamaha. Delphi had launched shock absorbers. Tamil Nadu). General Motors India. Delphi consumer electronics are sold in the aftermarket through Delphi Product & Service Solutions. Delphi is present in India as a wholly-owned subsidiary since 1995. 04m. The company won a contract from Maruti to supply suspension systems. Delphi India recorded sales worth INR8. Delphi's common rail system is equipped on various Indian models. design and engineering activities for fuelhandling systems and engine management systems are carried out. Financial Overview In the financial year ended 31 March 2008. Further. steering and braking control systems and has expanded its scope into product engineering. Outlook Delphi is focusing on development of its business with Asian OEMs. Delphi India is wholly-owned by Delphi (USA) hence does not report its financial statements separately. 31 March 2008) registering an estimated sales growth of 11% over 2007. Mahindra and Maruti bear testimony to its focus. Delphi's mobile electronics division. These contracts are expected to grow in number and bring increase in sales to Delphi. Delphi has lately been working on the development of web-based tools to automate engineering and business processes at Delphi Delco. The centre supports development programs on gasoline powertrain. 31 December 2004). © SupplierBusiness Ltd 2009 147 . Contracts Delphi supplies CRDi system to Tata Motors for the Safari Dicor model.9bn (€1.The Indian Supplier Report Investments In 2004. Its contracts with Tata Motors. New Product Developments Delphi's Technical Center develops embedded software for Delphi's diesel common rail engine management systems and advanced mobile multimedia systems. Increased exports of components is another growth area for the company. Research & Development of products and embedded software is a major thrust area for Delphi India. air conditioning and steering columns for the Swift model. This initiative will earn Delphi India global value in terms of Delphi's network.0bn (€127. Certifications Delphi India was certified with ISO 9002 certification in 1998.51m. Delphi estimated its total investment in India at INR3. STP/SVP fuel injection pumps. Ford India. Delphi TVS recorded sales worth INR3. Products Common pressure accumulator (rail).66m. cold room. Hyundai Motors India. common rail engine test bed and test rigs. In 2004.6m. injectors.600 004 Tamil Nadu India Delphi-TVS is a joint-venture between Delphi and the TVS Group (India) and amongst the largest manufacturers of rotary fuel-injection systems in India. In 2005. 82. Delphi-TVS is a non-listed company and does not publish detailed financial statements. 700 Financial Overview In the financial year ended 31 December 2005. Managing Director Sudesh Sud. The technical centre will be one of Delphi's 10 diesel application centres worldwide and will be equipped with a chassis dynamometer. The company also plans to utilise its facility in India to supply components to the Asian markets. Delphi-TVS supplies to Tata Motors. Delphi-TVS earmarked an investment of INR5bn (€86. DPCN pump. Contracts Delphi-TVS has a contract with Tata Motors to supply rotary fuel-injection systems for the Tata Indica platform. it introduced common rail systems in the market and has already entered into supply agreements with various OEMs.The Indian Supplier Report Delphi TVS Pumps. The company supplies Ford in UK and Peugeot in France.2bn (€59m. Mahindra & Mahindra and Maruti Udyog. Euro II and Euro IIIcompliant rotary pumps in India.Marketing Recent Developments Corporate strategy Delphi-TVS plans to leverage the growth in diesel fuelled passenger cars in the country. 31 December 2005). Delphi-TVS began supplies of rotary pumps to Perkins in UK. DP200. DCR components. President TK Balaji. a part of INR5bn (€86.2bn (€59m. General Manager.com Senior Officers JS Chopra. Outlook Delphi-TVS has taken a substantial lead over its competitors by winning a diesel engine injection components contract from Tata Motors. Tel: + 91 44 2811 0063/ 0074 Fax: + 91 44 2811 5624 Internet: http://www. DPC rotary fuel injection pumps. The company supplies CRDi system for the Tata Safari Dicor program. a new technical centre at its existing facility in Mannur (Tamil Nadu) is planned at an investment of INR500m (€8. The market share of diesel cars is increasing in India as price © SupplierBusiness Ltd 2009 148 . Certifications The company is certified with ISO/TS 16949 and ISQ 14000 status. Investments In November 2006.6m. filters.79m. injectors. Perkins (UK) and Peugeot (France). 28 February 2005).delphitvs. filters Address Delphi TVS Limited AALIM Centre 2nd Floor. 28 February 2005) investment. Further. The centre will be operational in mid 2006. Delphi-TVS plans to diversify its operations into research and development by starting a technical centre that will focus on new products and applications. Hindustan Motors. 30 November 2006). The company manufactures its products at a plant in Mannur (Tamil Nadu) which was initially set up by Lucas-TVS. 28 February 2005) to be spent over a period of five years for establishing diesel common rail components operations and expansion of its existing rotary pump fuel-injection facility. India's largest diesel passenger car maker. Dr Radhakrishnan Salai Mylapore Chennai. In February 2005. The company also exports to Ford (UK). Further. 31 December 2005) Employees c. Delphi-TVS announced the setting up of a plant at Uttaranchal for supply of Diesel engine requirements of Tata Ace program at a capital cost of INR 400m (€6. Delphi-TVS was the first manufacturer to introduce Euro I. Fiat India. unit pump Plants Tamil Nadu (1) Sales INR3. © SupplierBusiness Ltd 2009 149 .The Indian Supplier Report of petrol rises and diesel technology has improved and become cheaper. Indica platform sales have been growing steadily and Delphi-TVS stands to gain through Tata as well as with growth in the diesel vehicles market share. Tata Motors is among the few to adopt diesel engines for small cars in a large way. Denso India has grown its business with Maruti Suzuki's new facility in Gurgaon which commenced operations in 2006. thereby reducing its dependence on Maruti. Tata Motors. Tel: +91 11 2617 6693 Fax: +91 11 2618 2474 Senior Officers Hitoshi Hirahata. airflow meters. Maruti accounts for 48% of Denso's sales. Maruti decided to acquire 10. Denso Sales India Pvt Ltd (100%): Sale of automotive components manufactured by sister concerns in India. In 1996.93% in the company. In 1993. engine cooling fan.27% and 5% respectively. flywheel. Denso Faridabad Pvt Ltd (100%): Manufacture and sale of HVAC units and heaters. In line with a global identity change Nippon Denso was renamed Denso India Ltd in 1996.15m alternators and starter motors and 0. The company was then renamed Nippon Denso India Ltd.08) Employees c.60bn (€73. Exports are not a part of Denso India's business plan as Denso has country units spread throughout the globe.The Indian Supplier Report Denso India Electric motors. Denso India was founded as a joint-venture between DCM Shriram Group and Nippon Denso (Japan) as SRF Nippon India in 1984 for the manufacture of alternators. vacuum sensors. alternators and ECUs Address Denso India Limited. The company is keen on adding more products to its list. electronic control units. fan washer pump. Denso Kirloskar Industries Pvt Ltd (89%): Manufacture and sale of radiators and air conditioners. Denso Haryana Pvt Ltd (100%): Manufacture and sale of fuel pumps. and engine ECUs.9m. Maruti Udyog. Olof Palme Marg.12. Toyota Kirloskar Motors and Yamaha. 900 (2008) Recent Developments Corporate strategy The entry of its biggest customer Toyota into India has resulted in a proportional growth for Denso. Presently three major Japanese vendors hold stakes in the company. Sumitomo Corporation and Asmo Corporation hold 10. fuel Pumps. fuel gauges. CDI. the company expanded its portfolio to include engine management system parts such as electronic fuel-injection systems. ventilator. 31 March 2008) (Year to 31. Left wing. The company is pursuing cost control activities to offset the pressure on margins. It is a critical supplier to Maruti and enjoys a third of Indian passenger car market share. Denso India largely focuses on OEMs present in India. Honda-SIEL Cars India.27% stake in the company from SRF. electric fans. fuel-injectors. Managing DirectorDenso India Y Ishiguro. Toyota accounts for about 8% and Hero Honda. throttle bodies. ventilators. after undergoing a business downturn due to import restrictions which came into effect in 1992 to curb the devaluation of the Rupee. Denso India customers include Hero Honda. Denso India believes new products shall help improve profitability. Honda Motorcycles and Scooters. While Denso Corporation (Japan) holds 47. India Denso India is one of the largest suppliers of electric motors. Managing Director. wiper motors Plants Denso India Ltd: Noida Denso Haryana Pvt Ltd: Gurgaon Denso Kirloskar Industries: Bangalore Sales INR4. ECUs. starter motors. New Delhi –110067. The Capital Court. The company is working towards further diversifying its client base.1m wipers. Denso's Indian operations is organised into: Denso India Ltd (52. Hindustan Motors.Denso India Products Alternators.9% owned by Denso): Manufacture and sale of electrical automotive components. Denso Sales Akio Omoto. Director. coolant temperature sensors. oxygen sensors. Yamaha and Honda Scooters collectively account for 23-25 % of the company's sales. magnetos and windshield wiper motors. 3rd floor. etc. A plant was established in Noida (Uttar Pradesh. alternators and ECU's in India. Joint-ventures Denso India derives its technical know-how from joint-venture © SupplierBusiness Ltd 2009 150 . magneto. Munirka. Deputy Managing Director H Ishida. fuel pumps. injectors. India) with an installed capacity of 0. 71m. 31 March 2008) in 2008. 31 March 2008) in 2008. an increase of 9.60bn (€73.2bn (€72.30 Profit before tax.78m.71 67.40 112.80 3.80 7.15 Profit before tax.44 Net Profit.13 Net sales. Further. The company supplies blower motors to Tata Motors.79 3.10 58.5% compared to sales of INR4.89 2.41 4. INR m 278 276.11 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Outlook Future growth prospects for the company are bright as content per vehicle for electric motors and electronics grows.38 7. an increase of 0. Denso Haryana supplies fuel gauges to Mark Auto and to other associate suppliers of Maruti.The Indian Supplier Report partner Denso Japan.90 Operating profit.22 67.60 4. Denso’s present product offerings in India are only a fraction of its global offerings.51% compared to INR571.23 4.6 271. the demand for two-wheelers fitted with an auto-start function is rising and this will continue to benefit Denso's sales along with its plans to widen its product range. 31 March 2007) in 2007.90 72.41m.9m.30 184. Contracts Denso India supplies electric motors for every model in the Maruti Suzuki stable. Year Net sales. INR m 557.7m (€9.20 3.7 163.85m.60 382.90 2.71m. 31 March 2007) in 2007. €m 8.5% over INR276.87m. a decrease of 2. Denso Kirloskar supplies air conditioners to Honda-SIEL and Hindustan Motors for the Mitsubishi Lancer model. © SupplierBusiness Ltd 2009 151 .6m (€4. 31 March 2007) in 2007.47 Operating profit.60 3. The company registered an operating profit of INR557. INR m 428.60 6. The company entered into two major agreements with Denso Japan for additional technology transfer in the 90s. €m 73.6 209.2 416.87 7. 31 March 2000) expansion plan in 2000.3 571. INR bn 4.2 440.3m (€8.2 334.78 3.87 8.90 Net Profit. Net profit for the period was INR278m (€4. Incremental use of technology in Indian vehicles will lead to technology transfer to its Indian units. Investments The company completed an INR700m (€16. Financial Overview Denso India reported sales of INR4.85 9. €m 6. 31 March 2008). €m 4.7 476. 000. UK. Contracts In 2007. while operations of the company have been curtailed solely to emission control systems. Emcon is expected to setup a greenfield manufacturing facility close to the Singur assembly plant. 31 March 2007) Employees 105 (2007) © SupplierBusiness Ltd 2009 152 . Emcon India won supply orders for 50% requirement of the Tata small car program. Emcon believes that its product mix matches the requirements of the emission norms being introduced in India and it stands to gain from the forthcoming implementation of stricter norms. Tel: + 91 44 6740 4999 Fax: + 91 44 2746 4620 Internet: http:// www. the company is keen to tap domestic OEMs for higher volume vehicle programs. catalytic converters. Renault and VW is expected to bring fresh business for Emcon India. based in Bangalore and Chennai and supplies to its customers on a sequencing basis.77m.54m. Emcon Technologies is the sole supplier to Ford India and Toyota since their entry into India. Bangalore Sales INR 450m (€7. Plants Chennai . As a long term objective. Primarily. Emcon Technologies was formed as a joint-venture between ArvinMeritor and Anand Group in 1997 for the production of exhaust muffler assemblies. muffler boxes Recent Developments Corporate strategy While Emcon Technologies’ present businesses in India have largely been won on a follow through source basis. Emcon India supplies exhaust systems for the Ford Ikon program. Canada and Emcon. Emcon targets revenues worth INR1bn(€17. 31 March 2007) by 2012.603 204 Kancheepuram District Tamil Nadu India Emcon Technologies is a leading supplier of exhaust systems to the passenger cars sector in India.The Indian Supplier Report Emcon Technologies Exhaust systems Address Emcon Technologies India Pvt Ltd 17 & 18. The entry of Nissan.anandgroupindia. Emcon India has been exporting pressed parts and allied components instead of completely assembled systems. Emcon India eyes growth by expanding its product base to Diesel Particulate Filters and Selective Catalytic Reduction technologies in its present range. however its access to most markets is limited by Emcon’s existing network except in cases where the company internally decides to use India as a sourcing base. Emcon India announced the setting-up of its engineering and development center in Bangalore at a capital cost of US$ 600. instrument panel reinforcement assemblies and door side impact beams.com/arvin. The facility is expected to employ 60 associates and will handle complete assembly of the exhaust system. Arvin Exhaust has been rechristened Emcon Technologies in India. Vice President & COO Products Catalytic converters. The company plans to enter the commercial vehicle segment which is largely unorganised in India. 31 March 2007) by 2009 and INR 2bn (€34. Emcon India supplies exhaust systems for the Ford Fiesta program. Emcon believes that domestic supplies would form its major revenue source in India.html Senior Officers S Sarthi. exhaust systems. Investments In 2007. exhaust pipes. The company also supplies to Bombardier. in the immediate term the share of domestic business is likely to increase with the onset of supplies to new contracts with higher volumes. In 2007. While Emcon targets to generate 30% of its sales through exports.27m. One Equity Partners holds 74% in Emcon India while the balance is held by the Anand Group. Emcon has been exporting actively to European and North American customers. With global purchase of ArvinMeritor’s emission control business by One Equity Partners Inc. Emcon operates two manufacturing facilities. Sengundram Industrial Area Melrosapuram S P Koil Post . Emcon India generated 25% of its revenues through international supplies. Emcon Technologies India is a privately owned and does not publish financial statements. Also. India’s acceptance of stricter emission norms adds to Emcon’s chances of winning business with its highly developed and accepted product mix. The company is working on key contracts which will make it a fore-runner in the emission control business in the country. The entry of new OEMs in India will bring fresh business for Emcon on lines of its previous contracts with Toyota and Ford. 31 March 2007). Emcon Technologies India generated sales worth INR 450m (€7. Emcon India supplies muffler boxes to Emcon UK for the Land Rover Discovery program. Emcon India supplies exhaust systems for the Toyota Corolla program. Emcon India supplies exhaust systems for the Toyota Innova program. Outlook Emcon India is expanding its client base in India with the objective of garnering higher volume contracts.77m. Emcon supplies exhaust pipes to Bombardier. Emcon India also supplies pressed components for catalytic converters tpto Emcon UK.The Indian Supplier Report Emcon India supplies exhaust systems for the Ford Endeavour program. © SupplierBusiness Ltd 2009 153 . Canada. Financial Overview In the financial year 2007. Bajaj Auto. Piaggio. Over the last two decades. Manesar (1). Chennai (3).431 136 Maharashtra India Endurance Group is a leading supplier of clutch assemblies. Ford India.Bosch. high pressure die castings and shock absorbers Plants Aurangabad (8). the group has been able to diversify its customer base as well as its operations.The Indian Supplier Report Endurance Systems Clutch assemblies. shock absorbers and transmissions. 2. clutches. LML. Pune (6) Germany (2). John Deere. Daimler Chrysler. GM. 982 Waluj. disc brakes. Managing Director SB Bedekar. front forks. Peugeot. Endurance Technologies now has Endurance Systems and High Technology Transmission Systems as its subsidiaries. Honda Motorcycle & Scooter India. Grimeca.com Senior Officers Anurag Jain. Endurance Group’s European diecasting facilities are solely supplying to four wheeler OEs. Endurance group has restructured its holding in various group companies. Suzuki Motors. Two wheeler transmission: This comprises continuous and variable transmission systems. Iveco. Aurangabad . Suspension products: At present the company supplies two-wheeler suspension products to OEs. Endurance group's diverse Indian business is conducted through four companies: Endurance Technologies: comprises of two former divisions: o Anurang Engineering: manufactures high-pressure die-cast components and tooling. Renault. Lombardini. Endurance additionally has a presence in the four wheeler aftermarket with its braking system products. The group has a wide customer base. MICO. Kinetic Motors. McPherson Struts and Gas Springs High Technology Transmission Systems: was formed in 2001 for the production of clutch assemblies.A. o Endurance Transmission Systems: produces hydraulic telescopic front forks.I. Hyundai Motors India. President Products Aluminium die castings. Mahindra & Mahindra.endurancesystems. Tel: +91 240 2564595 Fax: 91 240 2555423 Internet: http://www. BMW. friction plates. Tata Motors and Tata Toyo. disc brakes. Endurance additionally has a presence in the four wheeler aftermarket with its suspension products. gravity die castings. Fiat India. Porsche. Endurance Systems: manufactures two-wheeler and four-wheeler shock absorbers.500 (31 March 2007) The group's operations are spread over four business streams: Die-cast components: are produced in India for supplies to two-wheeler manufacturers and internal consumption.C. shock absorbers and transmission systems Address Endurance Systems India Pvt. 31 March 2007) Employees c. working on supply contracts from Bajaj Auto. Royal Enfield. Ltd E-92. The newly formed holding company. The group made its beginning in 1985 in Aurangabad with the flagship company Anurang Engineering. Main customers of the group include Audi. Recently. die-cast components. Paioli S. M. Brassano. Pantnagar (3). two-wheeler disc brake assemblies and low pressure / gravity die-cast components.p. die-cast components. Braking systems: Includes disc brake assemblies supplied to two wheeler OEs. friction plates and continuous variation transmissions (CVT). New Holland. Endurance group has 24 plants and employed 2500 people in 2007. CVT. Anurang Engineering has been renamed Endurance Technologies and Endurance Transmission Systems was merged into the company. Mahle Killer System. Italy (3) Sales INR 15bn (€260m. Industrial area Post box no. ITEC. Recent Developments Corporate strategy Endurance has strengthened its focus on die-cast components with a series of acquisitions in Europe adding client base and technical know-how © SupplierBusiness Ltd 2009 154 . CFO BM Dhasmana.D. MAN. Daimler Chrysler.5bn (€30m. Peugeot and General Motors. Further its problem of dependence on Bajaj for revenues have been partly addressed with several four wheeler OEMs in its portfolio. ending 31 March 2009 and a target of INR 50bn (€794m. Endurance acquired 40% stake in the Italian front fork manufacturer Paioli Meccanica with whom it had inked a technical alliance in 1997. this would be reached through a mix of organic and inorganic growth. Endurance acquired 100% stake in Amann Druckguss of Germany for a consideration of €42m. Joint-ventures. Paioli Italy which makes suspension products. In the other operating segments however. Endurance had earlier set a target of 60:40 mix between four wheeler and two wheeler OE’s contribution to revenues of its die casting business. The company is based in Turin with a machining plant having sales turnover of €68m and a die casting plant having a sales turnover of €15m. In the die-casting business in particular. 31 March 2008) by 2010. Endurance acquired Nuova Renopress of Italy for a consideration of €23m. Divestment In 2007. The group expects to earn 43% of its revenues from overseas operations and exports in 2008. Of the 2010 target. Endurance has made firm plans of targeting ASEAN and African aftermarket with its range of two wheeler and four wheeler suspension and brake products. Porsche and Behr with a turnover of €40m in 2006. Nuova Renopress is a supplier to Siemens. 31 March 2005). Endurance has firm plans of making a complete acquisition of the company in the near term. Renault. The company is expecting to generate revenues worth INR 30bn (€476m. The group continues to that castings would be the major growth driver with brisk export potential. In February 2007. Aman Druckguss is a preferred supplier of speciality castings to customers like.A of Italy for an estimated €75m. Endurance announced a 50:50 joint venture with Magneti Marelli for manufacturing shock absorbers in India and Thailand. Paioli Meccanica is also a leading manufacturer of front forks in Europe. Endurance has setup a target of 15% exports from its current production in India. Endurance is presently supporting Paioli in Italy for its requirement of front forks. 31 June 2007) in favour of Standard Chartered Private Equity Limited. Endurance Technologies for a consideration of INR1.p. Endurance has picked a strategic stake in its technical alliance partner. Endurance had been on the look-out for strategic alliances and acquisitions in the die casting space. In June 2008. The balance of the company is owned by the Jain family. Endurance has managed to grow beyond the previously stated revenue target of INR 10bn (€177m. Endurance now has a major share of business being generated from four wheeler OEs. 31 March 2008) in the present financial year. The plant majorly supplies to Fiat.The Indian Supplier Report to its resource pool. Endurance has an option to increase its stake to 100%. 64% is expected to come through organic growth and the balance would be coming through inorganic growth. In January 2007. Outside the casting space. Endurance Group divested 15% stake in the holding company. In 2006. To this end. Endurance believes it can add value to such companies by supplying toolings and other materials from India to increase profitability. especially in the two wheeler brakes and suspension systems. Endurance acquired Fondalmec S. Acquisitions Endurance has been focusing on profit making companies with a strong client base and technology for its inorganic plans. The © SupplierBusiness Ltd 2009 155 . In 2006. Endurance has stated that it is targeting a global leadership position in castings by 2012. Endurance continues to depend on Bajaj for a major proportion of its revenues. Aftermarket is an important revenue source for Endurance. John Deere. The company is now increasing its casting marketing activity in the US which were earlier largely restricted to Europe. Honda and Bosch with a turnover of €25m in 2006. Endurance commissioned a global sourcing office for its supply requirements and a marketing office in Detroit.p. Endurance Transmission Systems has a technical agreement with Paioli Meccanica s. In 2006. In 2003. Endurance has entered a technical alliance with Akebono Brake Industry Co. The company has been supplying to HMSI in Manesar and Mico Bosch’s Jaipur based facility from the Manesar set up. Contracts Endurance has received US$20m worth of business for a Ford pick-up truck.A. In 2006. Endurance commenced supplies of SOS shock absorbers for the LML CRD 100. In 2006-07. The company will be specifically focus on design. The facility was formed as a technical alliance and caters to European OEMs. Endurance Transmission Systems has a technical collaboration with Bassano Grimeca.p. Endurance also shares a technical alliance with Germany based.a. Rane TRW among others. Endurance entered into a technical agreement with China based Wangfeng Auto. The relationship is particularly strong in case of five speed gearbox castings where Endurance holds a major chunk of M&M’s business. In October 2006. In 2006. one of the world’s largest two wheeler alloy wheel manufacturers for the production of alloy wheels at Chakan (Maharashtra). In 2004. Endurance Systems has a technical collaboration with Paioli S. India) and three in Chakan (Maharashtra. Al-Ko Kober Group for its foray into four-wheeler suspension.25bn (€40m. In 2005. In 2006.a.000 wheels per month.. The company supplies to clients Hyundai Motors. Endurance announced the setting up of Endurance Far East Systems with a plant at Laemchambang in Thailand’s export promotion zone for production of suspension and brake systems for two wheeler and four wheeler aftermarket supplies in Africa and the ASEAN region at a capital cost of INR 50m (€0. Italy for shock absorbers.86m. Investments In 2007. Endurance incurred expenses worth INR 2. Endurance has been supplying to various programs run by Fiat India. 31 March 2007). Adler holds 49% equity in the company while the balance is held by Endurance. The plant would be commissioned in September 2007. Italy for production of clutches. production and marketing shock absorbers – including semi-corner modules and gas springs – for cars and commercial vehicles for OEMs and aftermarket in India and other Asian markets. Endurance is the largest supplier of castings to Mahindra & Mahindra. Endurance plans started production at the new facility in March 2006. Hyundai began sourcing Aluminium die-casted components for the Santro model. In 2003. The shock absorbers and front forks are sourced from Endurance run facilities in India. Manesar based plant caters to the needs of OEMs and other customers in the Northern belt. Endurance commissioned five new units one each in Manesar (Haryana. The group also acquired 70 acres of land at Chakan for an undisclosed sum. 31 March 2007) on plant openings in Uttaranchal. Endurance commissioned its Aluminium die casting unit at Chennai. The company is also supplying friction plates and front forks for the LML CRD 100. India) in fiscal 2006. Endurance has been supplying castings to Honda Motorcycle & Scooters India. Aurangabad (Maharashtra. High Technology Transmission Systems inked a joint-venture with Adler s. Pune and West Bengal. The plant manufactures more than 100. Endurance commissioned an R&D facility with its Italian partner for two wheeler suspension applications. Italy for front forks. © SupplierBusiness Ltd 2009 156 .The Indian Supplier Report industrial facilities under the agreement are being created at Pune and Thailand. Endurance commissioned its Chennai facility which supplies components to the Hyundai Santro program. Japan for non-asbestos brakes for four wheeler application. India).p. Italy for disc brakes and aluminium die cast components. Painting/ plating thickness tester. In a way the company has been able to diversify away from its earlier mainstay. The company has developed and launched rechargeable type Gas Filled Shock Absorbers for 2 wheelers. Endurance Technologies is a privately held company and does not publish its financial data. Digital profile tester for inspection of very critical components. Surface roughness tester.The Indian Supplier Report Globally. Endurance supplies aluminium die casted components to Tata Motors and Hyundai Motors. Endurance systems has been granted patent for its “Dust seal washer”. Certifications Endurance has received QS9000 certification for several of it manufacturing locations. Yamaha has shown interest in sourcing its shock absorber requirements through Endurance.5Kgs and 50Kgs for checking precision valve spring. Endurance received an order worth US$17m from an American company which sourced fully machined Aluminium die cast components. 31 March 2007). Spring testing machine. Micro-hardness testing machines. Endurance has the following inspection and testing facilities: CNC. Endurance supplies gas filled shock absorbers for the Enfield Electra and Bajaj Pulsar. Spring testing machine. Outlook Endurance has rapidly added capacity through inorganic and organic route and is transforming into a major supplier in the domestic and international markets. Financial Overview In 2007. Endurance Technologies registered gross revenues worth INR 15bn (€260m. Salt spray machine for checking salt spray life of painted and plated components. The company has designed and developed Hydraulic Shock Absorbers with externally adjustable damping force in rebound and compression. Endurance has developed a spring-on-spring system. Endurance supplies front forks to Paioli Meccanica through a buy back arrangement and Yamaha in Spain and France. Endurance has also developed a shock absorber which can be used in both two wheelers and four wheelers In 2003. Endurance supplies Aluminium die casted components for the Tata Indica platform. Infrastructure Endurance has a dedicated plant for the export of front forks in CKD condition.Resistance measuring machine up to 3meter/ sec velocity. Adhesive strength testing machine with NC controls for friction lining assembly. © SupplierBusiness Ltd 2009 157 . Digital torque tester. but in three of four operating segments Bajaj continues to form the biggest revenue source. first time in India Endurance has come up with plastic canister shock absorbers which are inexpensive and can be fitted to scooters. Endurance is now firming its entry into the North American market. Endurance has in-house tool room infrastructure. Having established itself in Europe.40 tonnes. The company has also been supplying clutch assemblies and friction plates to global OEMs through Adler. New Product Developments Endurance mooted its R&D activities in the nineties to help streamline products and localise borrowed technology according to the Indian conditions. The group is seeking patents for its twin tube rechargeable canister type Ole – pneumatic Shock Absorber. Bajaj Auto. Universal testing machine. Also. for testing of material properties and weld strength.100Kgs and 500Kgs for checking of springs and rubber components. Computerized clutch assembly performance testing machines. Haryana. 31 March 2008). India Enkei Castalloy is a supplier of castings and machined components for the domestic and export markets. 31 March 2007).04bn (€1.63% compared to previous year’s sales of INR2. €m 1.16% to INR66.12. engine crank cases.09 1.04m.28 2. Honda Scooter and Motorcycle Company. The company manufactures cylinder heads for two wheelers and alloy wheels for two-wheelers as well as for four-wheelers in India.08) Financial Overview In the financial year ended 31 March 2008. Enkei also supplies alloy wheels for the Toyota Corolla Altis program. The company exports die-cast components to various Tier I and II suppliers in Europe and USA. ZF Group. Enkei Castalloy uses its parent’s patented global manufacturing system MAP to manufacture alloy wheels. The company reported pre-tax profits of INR63. Uttaranchal Sales INR3. € m 5. Contracts Enkei supplies alloy wheels for the Toyota Corolla program.25bn (€51.47m.26m (€2.7 76. Hero Honda Motor Industries.33 230.enkeicastalloy.412208 Maharashtra.34 1. INR m 63.05 337. The net profit decreased by 44.49 350.09 161. Tata Motors.co.32 28.43 Profit before tax.56 Operating profit.47% compared to INR143. Enkei Castalloy sales have grown at a CAGR of 165%.64 Net Profit.02 Profit before tax. Enkei also supplies alloy wheels for the Toyota Innova program.01 125.3bn (€39. intake manifolds.296.25bn (€51. €m 51. Head. € m 1. 31 March 2007) in 2007. Bajaj Auto Limited. MAP is a closed loop modular production line that yields high productivity levels. Hyundai Motors.67m (€1.04 118. a decrease of 55.01 2.01m (€2. INR m 376. Behr Group. Suzuki Motors India Limited. Enkei Castalloy recorded sales worth INR3.37 Operating profit. 31 March 2008).51 34.55 0.50 1.53 Employees NA Outlook © SupplierBusiness Ltd 2009 158 . District Pune . Tel: +91 2137 677100 Fax: +912137 72643 Internet: http://www. 31 March 2008) from INR118.86 1. By expanding its production capacity.26 80. an increase of 41.The Indian Supplier Report Enkei Castalloy Aluminium castings and machined components Address Enkei Castalloy Limited Gat No. 1426. support brackets Plants Maharashtra.15 Net Profit.38 39. INR m 3. CEO D Mahajan. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales. and GWK Group.in Senior Officers R Sikand.83 4.47 87. Honda Siel Cars Limited. Shikrapur Tal.09 646.38m.67 143.04 1. Marketing Recent Developments Corporate strategy Between 2004 and 2008.251.65m. steering housings. Its international customers include Trelleborg. INR m 66. Enkei Castalloy is a joint-venture between Rai and Associates and Enkei of Japan.227.85 11.84 2. 31 March 2007) in 2007. Enkei has aggressively targeted international customers with a sales target of INR 10bn by 2009-10.47 2.38m.75 71.94 Gross sales. cylinder heads. Yamaha India and many more. Enkei’s customers include Maruti Udyog Limited.94 5. Products Alloy wheels.04m.04 2.65 22.44 6. Mahindra & Mahindra. The company operates through three plants based in India.26 0. Shirur.01m. 31 March 2008) (Year to 31. the potential in this segment is significant.The Indian Supplier Report Going forward. © SupplierBusiness Ltd 2009 159 . Alloy wheels for motorcycles have substantial potential since penetration of such wheels is low in India. Enkei stands to benefit from its parent’s supply relations with the Japanese OEMs. With just four wheel suppliers in the market. Rwanda. Exide formed Espex Batteries Ltd.8bn (€473. railways. Germany. a part of Hitachi Group (Japan) for automotive batteries. Sri Lanka. is substantially lower compared to India. Spain. The company has expressed concern over the signing of the FTA with Thailand stating that the import duty on lead. Haryana. Cyprus. The company's flagship automotive battery brands 'Exide' and 'SF' (Standard Furukawa) have a strong presence in the Indian market.. France. Joint-ventures Exide has a technical alliance with Shin-Kobe Electric Machinery Co.com Senior Officers RG Kapadia. Russia. Automotive Exide Industries (EIL) is among the largest power storage companies in India. Exide's Taloja unit has a technical collaboration with the Furukawa Battery Co. The company believes that aftermarket demand and exports would be the key growth drivers in the coming years.000 (31 March 2008) Corporate strategy Exide Industries is focusing on improving its aftermarket and organised retail segment share from 45% to 65% respectively. Tata Motors.exideindustries. Exide manufactured more than 7. It is a leading twowheeler battery company in the world. Belgium. Peru. in Thailand. Exide is looking at increasing exports. Products Batteries Plants Chandigarh. The company also supplies to non-automotive sectors such as defence. Paraguay. 31 March 2008) Recent Developments Employees c. the company has introduced a hedging policy which is expected to help sustain margins in the short-term. Greece. In order to beat the pressure on margins due to lead prices. a joint-venture based in UK.2m. the company expects to achieve 10% of its sales from exports. Mauritius. Yemen. Chairman RB Raheja. Toyota Kirloskar India and Yamaha. To this end. Ethiopia. Director. In the financial year 2005. Qatar.The Indian Supplier Report Exide Industries Batteries Address Exide Industries Ltd Exide House. The company has a strong presence in the aftermarket with a network of approximately 3. Mahindra & Mahindra. the company has acquired a lead smelter unit to mitigate cost hikes and to further integrate its business model. Force Motors. Exide Industries constitutes two business segments -. Also Exide has developed new products with lower lead content per unit. Further. Singapore. Kenya. United Kingdom. (Japan) for automotive batteries. 4. Hero Honda. Acquisitions In October 2007. Cummins. West Bengal (2) Sales INR29.automotive and industrial applications. Honda Siel. Managing Director & CEO SK Mittal. China. Director. Maharashtra (2). In the same year. Oman. Bajaj Auto. motive power. Vice Chairman TV Ramanathan. Ford India. New Holland Tractors. Exide Industries announced the acquisition of Tandon © SupplierBusiness Ltd 2009 160 . Ltd. By 2008. Swaraj Mazda. GM India. Exide Industries’ customers include Ashok Leyland. Ivory Coast. DaimlerChrysler. which at present contribute 4% to the company's sales. Fiat India. Sierra Leone. Kuwait. UAE. Australia. Hyundai India. Columbia. Ltd. 59 E Chowringhee Road Kolkata 700 020 Tel: +91 033 2283 2136/ 38/ 39 Fax: +91 33 2283 2150/ 51 Internet: http://www. Zambia and Zimbabwe.000 dealers across India. Vietnam. Netherlands. South Africa. Exide struck a strategic alliance with IBG of Netherlands for marketing. Uruguay. Exide exports batteries to countries including Armenia. Saudi Arabia. Formerly known as Chloride Industries. Myanmar. Bahrain Bangladesh. Tamil Nadu (2). Lebanon. telecommunications and computer hardware. Maruti Udyog.2 million units of four wheeler and two-wheeler automotive batteries. Italy. Escorts. The company commands a 90% market share in the automotive OEM segment and 83% in the overall automotive battery market. R&D PK Kataky. Chile. In 2003. Tata Indigo. 31 March 2005) expansion plan for automotive and industrial batteries.46% to INR2. Opel Corsa. Maharashtra. In 2006. The range was later extended with batteries for diesel powered three-wheelers. Also in 2006. In the same period. In 2000. Mitsubishi Lancer. Exide developed batteries for CNG/LPG powered threewheelers in the replacement market. In 2005. Exide was awarded a contract for supply of batteries to the GM Chevrolet Aveo program in India. Exide was made the sole supplier of batteries to the Toyota Innova program in India. Tata Indica. In May 2005.91% during the year with the closing figure at INR 3. In 2005. Exide commenced production of thin tubular standby batteries at the Haldia (West Bengal) plant in 2V HR containers to improve cost competitiveness. Exide is the OE supplier of batteries for Honda City.58bn (€27. In the same year.32m. Bajaj Auto and Kinetic Engineering.42% compared to INR19.91bn (€62. Toyota Qualis. Financial Overview In the financial year ended 31 March 2008. In 1998.09m. In 2003. Exide plans to scale up the company’s smelting capacity for substituting lead imports. Suzuki Baleno and Suzuki Wagon R. Exide acquired Standard Batteries Ltd adding four factories to its operations.8bn (€473. Exide developed a range of ultrasonically sealed zero-maintenance batteries adapted to Indian service conditions. The pre-tax profit increased by 62. a smelting company based in Pune. Hyundai Santro.5bn (€97. Exide acquired 49% of shares in Associated Battery Manufacturers (Ceylon) Limited (Sri Lanka).2m. Exide commenced battery supplies to Tata Ace.The Indian Supplier Report Metals Pvt Ltd.13% shares of GMR Industries Ltd.39m. Exide Industries has developed a 200Ah battery. Associated Battery was subsequently made a subsidiary of Exide. Exide developed new batteries for fitment in Mahindra Scorpio. Exide commissioned its eighth plant.14m.63bn (€41. Associated Battery Manufacturers (Ceylon) Ltd became a 61% subsidiary of the company.35m. an increase of 50. Exide is the sole supplier of batteries to Tata Motors. 31 March 2007) in 2007. Net profit increased by 66. In 2005. 31 March 2008) compared to INR2. Fiat Palio. 31 May 2005). Chinchwad (Maharashtra) and Taloja (Maharashtra) plants have been certified with TS 16949 certification. Hyundai and Toyota Qualis models. New Product Developments In 2006.78m.81bn (€342. 31 March 2008) from INR1. Exide reported net sales of INR29. Hyundai Sonata.9m. Exide commenced supplies to Mahindra Renault Logan program. Investments In 2005. Exide was awarded a supply contract for the Toyota Corolla model in India.4bn (€41. Contracts In 2007. Hyundai Accent. Exide acquired 49. Mahindra Scorpio and Mahindra Bolero models. 31 March 2007) in 2007. Honda Accord. Also in 2006. Its plants Hosur (Karnataka). in ING Vysya Life Insurance Company at a cost of INR2bn (€36. 31 March 2007) in 2007. QS9000 and ISO 14001 certification by RWTUV. Exide was granted an international patent for a vented type leak resistant motorcycle battery. at Bawal (Haryana) for OEM supplies in JIT deliveries. 31 March 2008). Certification Exide Industries has been accredited with ISO 9001. Exide announced a INR5. The company also developed batteries for OE supplies to Tata Motors and Ashok Leyland. In 2004. Improved sales were registered on account of higher sales of two-wheeler © SupplierBusiness Ltd 2009 161 . Exide commenced supplies of batteries to Skoda Auto India for both petrol and diesel variants. INR bn 29.39 28.11 42. Korea and South Africa. For Exide. € m 473.01 0.77 0.78 27.32 18. © SupplierBusiness Ltd 2009 162 .52 1.25 20.57 22. INR bn 2.81 13.28 Net Profit. INR bn 3.61 Outlook Exide Industries has a dominant share of the OEM market but has potential of growing significantly in the automotive replacement market.91 2. With an objective to increase its exports.8 19.73 Net Profit.63 32.The Indian Supplier Report and passenger car batteries and higher prices of lead which were passed to the consumers.82 Operating Profit. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales. cost of raw materials are an issue on profitability.16 1. the company might be able offset the margin pressures. The company is planning to foray into overseas markets such as Australia.84 9.14 34.71 Operating Profit.82 1.20 342.89 11.60 182.58 1. €m 41.14 41.4 1.55 209. € m 56. Exide has formed joint-ventures with ESPEX Batteries Ltd (UK) and with IBG (Netherlands).19 Profit Before Tax. INR bn 3. € m 62. Further. the company has received bulk orders from Hero Honda and Bajaj Auto to expand its market in the two-wheeler segment.76 13.63 1.29 1. but with short-term and long-term measures under planning.04 Profit Before Tax.68 13.09 258.25 2.78 Net sales. 700 (2007) © SupplierBusiness Ltd 2009 163 . Voltas and Yamaha. the flagship plant commenced production of small sized pistons for application in two-wheelers. Bajaj Auto.23m. OE Sales & application engineering Rakesh Anand. synchronizer hubs. The company began with a plant in Patiala (Punjab) to manufacture piston rings and cylinder liners.valve train parts. International Tractors. Vice President. which the company views as one of the key markets for its automotive and aftermarket business. Force Motors.9m. A-26/3 Mohan Co-operative Industrial Estate.4% to 50. Karnataka (2). Japan. 17 May 2006) to its Indian promoter and has taken over the management control.goetzeindia. In 2000. Hindustan Motors. This move supports Federal Mogul's growth strategy to expand in India.12. Projects Products Crank pins. was merged into Goetze (India ) Ltd. Frick India. and the Escorts Group. Joint-ventures In 1997. piston rings. The company expanded and established a plant at Bangalore (Karnataka) in 1978.and fourwheeler OEMs. Goetze India Limited. Greaves. In May 2006. International Tractors. Goetze holds the leading market share in its product segment in the OEM supply business. oil pump rotor and gears Plants Punjab . light alloy castings. Tel: +91 11 5149 7600 Fax: +91 11 5149 7601 Internet: http://www. Escorts. In 1995. Goetze has one manufacturing facility in Yelhanka (Karnataka). Federal Mogul Sintered Products Ltd. gudgeon pins and crank pins.1%. Managing Director & CFO Mohan Narayanan. It operates four plants spread across the country and supplies to all major two. LML. piston rings. light alloy casting. The other businesses were hived off into other companies.The Indian Supplier Report Federal Mogul Goetze Pistons and piston rings Address Federal-Mogul Goetze (India) Limited. San Engineering. Chairman & Director Rustin Murdock. Goetze has developed a wide customer base which will help it sustain its business in cyclical downturns in the automotive industry. cylinder liners. the company formed Brico Goetze (India) Ltd in collaboration with T&N Plc for the production of sintered metal components. Fiat India. with new technology. Honda Siel. Swaraj Mazda. Mahindra & Mahindra. piston rings. Rajasthan Sales INR6. Goetze decided to focus on its core business and hive off its non-automotive business. L&T John Deere. Mathura Road New Delhi 110 044 India Federal-Mogul Goetze (FMG) is India's largest manufacturer of pistons and piston rings. Employees c. Goetze included light alloy cylinders and small size piston rings in its portfolio. while the flagship plant at Patiala (Punjab) manufactures pistons. The company paid INR1. gudgeon pins. Royal Enfield. gudgeon pins and crank pins.23bn (€107. Goetze's capacity is 11 million pistons and 53 million pistons rings per annum.net Senior Officers Charles B Grant. cylinder liners. In 1985.38bn (€23. In 2000. piston pins. The Bhiwadibased (Rajasthan) plant produces sintered metal parts. Kirloskar Oil Engines. from 25. engaged in the production of pistons. Hero Honda. 4. Federal-Mogul raised its share in joint-venture. TVS Motors. sintered products. Tata Motors. In 1986. Goetze's customers include Ashok Leyland. Tata Cummins.07) Recent Developments Corporate strategy After expanding fast into related and new areas. Goetze India was incorporated in 1954 as a joint-venture between Goetzewerke Friedrich Goetze AG. 31 December 2007) (Year to 31. Kinetic Motors. This was followed by diversification into non-automotive business. Goetze entered a joint-venture with Teikoku Piston Ring Co. Eicher Motors. it plans to retain its market share. the company's over-diversified businesses started showing sub-optimal performance. pistons. Escorts and Federal Mogul decided to sell its non-core businesses and focus on the automotive industry-. But soon. Goetze has continuously increased capacity to meet higher demand from its customers and. Birla Yamaha. Director. Germany. Certifications Goetze facilities at Bangalore and Patiala are TS 16949 and ISO 14001 certified. © SupplierBusiness Ltd 2009 164 . A new facility was set up for the same at Bangalore. In the financial year 2005. By tying up for new piston technologies. three-piece oil rings and other products. Goetze will win contracts. while Bhiwadi facility is TS 16949 certified. international supplies will depend on cost competitiveness which is vulnerable to a host of dynamic external factors. The plant has an installed capacity of 14. There is also high probability of catering to global requirement of parent company through outsourcing from bases in India. The company is also optimistic about receiving more order from US based automobiles manufacturers operating in India. Financial Overview In the financial year ended 31 December 2007.4m steel rings. 31 December 2007) in 2007. from OEMs who are forced to upgrade to meet more stringent emission norms. the profits are affected due to input costs of raw materials. However given the current demand scenario. Results for the period are not comparable due to the revision of company’s financial calendar. Goetze witnessed steady growth in sales and enjoyed even better profit margins. After taking over the management control of Goetze India.Mogul is in better position to leverage its technological expertise.23bn (€107. 31 December 2007). nitrided steel piston rings. for the production of steel piston rings. Outlook Goetze has achieved steady growth in sales aided by a buoyant vehicle market in the country. The company posted a net loss of INR142. called Goetze TP.96m (€2. professional management and global distribution network.23m. Federal.46m. Growth is sales will be correlated with vehicle sales growth which is expected to be slow down. Future performance will be based on internal cost efficiency. Federal Mogul Goetze India recorded sales worth INR6.The Indian Supplier Report and Federal Mogul forming a new entity. for new generation engines. but in 2007. 31 March 2008) by 2009. President & Director C Suresh Kumar.12. Flex Enterprises (USA). gear boxes. Kinetic Motor. the company set up its wholly owned subsidiary in India as Fenner Cockill Limited. one in Chennai (Tamil Nadu) and the other in Hyderabad (Andhra Pradesh). New Holland Tractors India. the company supplies to Bearings International (South Africa). of UK. Rico Auto. Tamil Nadu. Mahindra & Mahindra.85m.08) Corporate strategy In recent years. The company is the market leader in the automobile segment in both belts and in oil seals. oil seals and power transmission products catering to the requirement of both the automotive and industrial sectors. a part of JK Group. Anna Salai. Tata Motors. Yamaha Motor India and ZF Steering Gears. Tel: + 91 44 2431 2450 Fax: + 91 44 2434 9016 Internet: http://www. The name of the company was changed in 1975 to Fenner India Limited. RCT (Italy). Midas (South Africa). Hero Honda Motors.fennerindia. The company targets a turnover of INR5bn (€79m. Fenner India has diverse customer base. the company supplies to Alpump. This was part of the company’s Employees c. shaft mounted speed reducers. oil seals. In 1987. General Manager. Transbec (Canada). Khivraj Complex II. 28 February 2006) in the Hyderabad facility and INR150m (€2. power transmissions Address Fenner (India) Ltd. Westward Parts (Canada). Fenner International. automotive pulleys.The Indian Supplier Report Fenner India Automotive belts. Subros. mainly catering to four wheelers. VP. 31 March 2008) (Year to 31. Piaggio. taper-lock bushes. Simpson Sabind Industries. Investments In February 2006. and other rubber components. In the domestic market. poly vbelts. Exports Products Couplings. started its operation in India in 1929 as a trading company. Maruti Udyog. Same Greaves Tractors. Wyko Hendrickson (UK) and ZVL (Italy). While the plant at Chennai manufactures oil seals. In 1955. Dunlop (South Africa). Tamil Nadu (2) Recent Developments Sales INR 3. HMT. JK Group acquired Fenner India. pulleys. Divestments In August 2004. the company has not yet closed any deals. the Hyderabad plant manufactures raw edge cogged and multi-rib belts. Kinetic Engineering. oil seals.60m. Royal Enfield. Fenner India has diversified into the automotive components segment. 2. raw edge cogged belts. Motion Industries (Australia). Tractors & Farm Equipment. S & V (USA). timing belts. Sales & Marketing M Balakrishnan. is a leading supplier of belts. Fenner India also exports its product to 50 countries across the world. Bajaj Auto. Mercurio (Brazil). both in the domestic and in the foreign markets.com Senior Officers L Ramkumar. Fenner India has implemented several productivity enhancement tools. Fenner India divested its conveyer belt business to Fenner PLC. the earlier owner of Fenner India. John Deere.75m. Rodameintos (Spain). Fordata (China). TVS Motor. DTL & Rane. Swaraj Mazda. Force Motors. Senior VP. India Fenner India. VST Tillers Tractors. 28 February 2006) in the Chennai facility. Fezalar (Turkey).9m. Lucas TVS. Chennai 600 035. Honda Motorcycle & Scooter India. 28 February 2006) in the project. 480. Higlox (Panama). While Fenner had made provisions for acquiring smaller businesses. INR250m (€4. In the foreign market. Ashok Leyland. Sunbeam Auto. Technology & Development Raj Menon.810 (31 March 2008) © SupplierBusiness Ltd 2009 165 . Sundaram Clayton. VP. The company made a total investment of INR400m (€7.05bn (€48. Keihin Penalfa. Nandanam. Fenner India announced the opening of two new facilities. v-belts Plants Andhra Pradesh. The company also has presence in the replacement market. The company hived off non-core conveyor belt businesses and is now focusing solely on automotive products. Visteon Automotive Systems India. LML. 5th Floor. Operations V Abraham. Maharashtra Scooters. Hindustan Motors. Among the components that it supplies is engine mountings. Eicher Motors. Escort Tractors. the production capacity of belts and oil seals was increased by 60% and 50% per annum.79m. Certifications Fenner India plants are accredited with ISO 9001:2000. With the modernisation programme. ISO 14001:1996 and ISO/TS16949:2002 quality certificates. The company spends INR50m (€0. The company is likely to retain its leadership in both automotive belts and in oil seals businesses in India after increasing its focus. by divesting conveyor belt business followed by expansions.9m.The Indian Supplier Report expansion drive and up gradation of existing facilities.05bn (€48. Fenner India has successfully added rubber and rubber metal bonded components to its product portfolio. 31 March 2008). Fenner India’s estimated sales were INR 3. Financial Overview In the financial year ended 31 March 2008. Outlook Over the years. respectively. © SupplierBusiness Ltd 2009 166 . New Product Development Fenner India has its own technology centre where it carries out extensive research and development programs. 31 March 2008) per year on research and development. in the core business. some passenger cars and commercial vehicles customers and exports through buy-back arrangements with its joint-venture partners. Austria for automotive lighting and signalling equipment and wiring harnesses for trucks and trailers with 100% buy back arrangement. Director. the company inked an MoU for establishing a 60:40 joint-venture with Korea Air Conditioners Ltd for the production of automotive radiators. Fiem was established in 1970s as BP Plastic Industries for the production of automotive lighting and signalling equipment. Sales S Narayanan. Products Auxiliary lamps. South India Opertions Seema Jain. Eicher Motors.The Indian Supplier Report Fiem Automotive lighting equipment & mirrors Address Fiem Industries Limited. Managing Director JSS Rao. interior lamps. Skoda.500 (31 March 2008) © SupplierBusiness Ltd 2009 167 . Director. Japan for automotive lighting. Italy for a 60:40 joint venture to manufacture and supply locking systems. fog lamps. Vice President.com Senior Officers JK Jain. Hero Motors. Fiem’s OEM customers include Ashok Leyland. frame assemblies head lamps.78bn (€28. the company entered into an alliance with Sung San (Korea). At present Fiem draws around 65% of its revenues from TVS. Hosur (3). Fiem expects to generate 25% of its sales from exports by 2010. HMT. In 1996. rear view and signalling equipment. reflex reflector.T. Such measures have been initiated through joint-ventures for exports of mirrors and cable harnesses besides lighting equipment. Kundli. Finance OP Gupta. New Holland. Also in 2006. Fiem believes that by focusing on a niche market will help the company swiftly corner a significant market in which it is a late entrant. Noida (1) Sales INR1. Fiem inked an MoU for a 51:49 joint-venture with Aspock Systems. Exports Fiem started as a lighting equipment manufacturer then diversified into rear view mirrors and is now a major supplier to the automotive industry though its eight plants based in three automotive clusters and a tax-free zone in India. Mysore (1). Fiat India. Tata and TVS. Reva. work lamps Recent Developments Corporate strategy Fiem continues to bank on its strength in the two wheeler lighting business while the company is strengthening its presence in the four wheeler segment. Chief Financial Officer RK Sharma. rear combination lamps. plastics and sheet metal components. Majestic Auto. Fiem signed an MoU with ZADI Divisione Fanaleria CEV Spa.fiemauto. warning triangle. Escorts. In 2005. G. Hyundai India. heating elements and air-conditioning systems with 50% buy back commitment. Additionally the company is increasing its product range by adding non-lighting products. Fiem supplies mainly to the Indian two-wheeler industry. Director. tail lamps. The company went on to add a plant at Bangalore (Karnataka) in 1986 followed by establishing Halogen Auto & Electrical Industries at Pune (Maharashtra) and Kundli (Haryana) in 1989 for the production of automotive rear view mirrors. India Tel: +91 130 2219 172 /73 /74 /75 /76 Fax: +91 130 2219 179 Internet: http://www. 31 March 2008) Employees Group: 1. HR Pravin Kumar. Scooters India. LML. Sonepat (1). mirrors. Road. Sonalika. TAFE. After the collapse of Daewoo. Fiem generates 95% of its revenues from OEM sales. Overseas Operations Anchal Jain. cable harness assemblies. Force Motors.15m. 32 Mile Stone. Haryana. Swaraj Mazda. Kinetic. Joint-ventures In 2006. Honda Motors and Scooters India. The company shall locate its facility in Hosur. Plants Himachal Pradesh (1). GM. Additionally with new OEM contacts and aftermarket supplies the company plans to decrease its reliance on TVS. Sonepat. Mahindra. Distt. blinkers. the company now fulfils the internal needs of Fiem Industries. Executive Director. The company is keen on supplying to Japanese OEMs by leveraging its designing strength and a technical understanding. Bajaj Auto. for supply of automotive lighting and signalling equipments to Daewoo India. Fiem Auto & Electricals was established in 1977 with a plant in Delhi. Vice President. In November 2005. Fiem entered a technical agreement with Ichikoh Industries Ltd. INR m 141. In 2006. ISO/TS 16949:2002. Certifications Fiem Industries has been accredited with ISO 14001:2004. a 25.39m (€1. In the same year.54% over previous year’s revenues of INR1.15 29.80m. INR m 93. Haryana. Korea for technical assistance. an increase of 5. Fiem has rapidly added new customers and widened its product range over the years. Also in 2005. Operating profit for 2007 increased by 3.49 231.48 2. Fiem won an order from Yamaha India. 31 March 2007).The Indian Supplier Report In 2003.16 2008 2007 Year 2008 2007 Outlook Fiem will gain from its various joint-ventures for supplying components overseas through either exports or by buy-back arrangement. €m 28. The improved sales performance was largely due to additional sales from buy-back arrangements and exports.3% decrease on a year-on-year basis. the company announced the setting up of a plant at Nalagarh (Himachal Pradesh) to service tractor and two-wheeler manufacturers. 31 March 2007).88 Net Profit.39 125. € m 2. On the domestic front. Fiem Industries generated sales worth INR1.01 Operating profit. Fiem commenced supplies of auto mirror plates to Ichikoh. ISO 9001:2000. Fiem commenced construction at a Greenfield site in Sonepat.88 Gross sales.48m. Japan from its Hosur based Export Oriented Unit. Fiem started an overseas R&D facility in Japan to strengthen its design capability. Year Gross sales. Fiem inked an MoU with AMS Co. Investments In March 2007.57 Profit before tax.. The newly initiated four wheeler focus of Fiem has opened major growth opportunities for the company.01 Net Profit. In 2006.00 Profit before tax. In 2005. the company added a new plant at Hosur (Tamil Nadu). € m 1. the company started a facility at Mysore (Karnataka). Netherlands for E-marked products. QS 9000. 31 March 2008).15m.679.77 166. the company continues to draw support from two wheeler supply contracts and more worryingly from a single customer which is losing market share.78bn (€28.16m.48% on a year-on-year basis reaching a figure of INR239. INR m 1. Fiem established a plant at Hosur (Tamil Nadu). Net profit for 2007 was at INR93. Contracts In 2007. Financial Overview In its financial year ended 31 March 2008.01m (€2. Fiem established an Export Oriented Unit at Hosur (Tamil Nadu) for supply of mirror plates to Ichikoh. In 2004.772.80 4. Overall the recent moves made by Fiem should be able to help the company establish foothold in the four wheeler market in its core operating segment while adding a significant revenue stream from exports. 31 March 2008). © SupplierBusiness Ltd 2009 168 .49m (€3. 31 March 2008) compared to INR125. ISO 9002 and COP compliance for RDW. INR m 239.01m. Also in 2006.98 1.25 2. € m 3.43 Operating profit.68bn (€29. DieselLocoWorks. The company serves the OEM. The company classifies itself into two arms: Engine bearings: Under this unit Gabriel undertakes production of a complete range of bimetal bearings. Sona Koyo Systems. India) Ride controls products: This division is engaged in the production of shock absorbers for two wheelers. India) for the production of shock absorbers and front-forks for Yamaha. Gurgaon (Haryana. The company has achieved some breakthrough in the exports of copper lead powder and sintered strips to Europe and North America. Cummins India. railway shock absorbers. Eicher Motors.gabrielindia. Fiat. Nashik (1). Ford. Gabriel India manufactures over 10 million shock absorbers. flanges and thrust washers. 31 March 2008) (Year to 31. 2. Hyundai. the company established a new plant in Nashik (Maharashtra. India) and Gurgaon (Haryana. Dewas (Madhya Pradesh.400 (31. Sonalika International. Toyota.08) Recent Developments Corporate strategy Gabriel India moved from being a government contractor to a full-fledged automotive component supplier. Pune (1) Sales INR4. Clutch Auto. Rai Prexim. Kinetic Motors. LML.24m. Honda Motor Cycles & Scooters India. During the mid-80s Gabriel signed an alliance with Maremont (USA) for the production of McPherson struts. struts and front forks per annum. Noida(1).com Senior Officers Deep C Anand. Eicher Demm. DhanuMetals. shock absorbers.com Address Magnet House NM Marg Ballard Estate Mumbai 400 038 Gabriel is the flagship company of the Anand Group. Tata Motors. Gabriel India was incorporated in 1961 as a manufacturer of shock absorbers with 50% of the stake with Gabriel (USA) and the balance held by the Indian promoters. Royal Enfield. MIDC-Nashik (Maharashtra. Atlas Gears. marine and power generation. Swaraj Mazda. with particular focus towards buy-back arrangements. India) and Noida (Uttar Pradesh. McPherson struts and other ride control products. India).gabrielindia. Himachal Pradesh (2). Gabriel’s clientele include Ashok Leyland. Tel: +91 22 23616544 Fax: +91 22 23698393 Internet: http://www. Pune (Maharashtra. Initially. Gabriel India supplies engine bearings to domestic OEMs and the after-market in the automotive industry as well as other segments such as railways. Kinetic Engineering. HMT. Today. Suzuki. Managing Director Products Bushings. New Holland.08) © SupplierBusiness Ltd 2009 169 . India). Hosur (Tamil Nadu. Mahindra & Mahindra. Escorts. Gabriel India is eyeing potential customers for its engine bearing product line-up in the export segment. India). Gabriel has formed various strategic alliances to expand and improve its product range. Hosur (1). one of India's leading automotive groups. Haryana (2). Gabriel India forged a technical and financial alliance with Federal-Mogul (USA) for the production of bi-metallic strips. TVS and Yamaha India. bi-metallic bearings and copper lead alloys.7bn (€74. hydraulic front forks. With continued focus towards exports for its ride control products. PTL. Bajaj Auto. namely Mulund (Mumbai.03. Cummins Tata.03.The Indian Supplier Report Gabriel India Ride Control Products and Engine Bearings Address 1 Sri Aurobindo Marg New Delhi 110 016 India Tel: +91 11 26564542 Fax: +91 11 26862644 Internet: http://www. thrust washers. large size bearings Plants Dewas (1). India). thin wall bearings. Chairman K N Subramaniam. Gabriel has achieved some success in terms of contracts with alliance partners and OEMs abroad. It is amongst the largest manufacturers of shock absorbers and a major player in the engine bearings segment. Mitsubishi. Production is carried out at two facilities Parwanoo (Himachal Pradesh. Mumbai (1). In 1987. Joint-ventures The company has a technical alliance with Kayaba (Japan) for the production Employees c. Gabriel has seven facilities under the ride control arm. Maharashtra. McPherson struts. cartridges. including manufacture of powder metal and bimetal strips. India). Force Motors. Carrier Aircon. shock absorbers. Hindustan Motors. Gabriel is working closely with partner Arvin Meritor for buy-back arrangements for latter's USA and European facilities. bushes. replacement and export markets through its nine manufacturing units spread across the country. In recent years. India). QS 9000. In 2005. The company recorded a net profit of INR76. 31 March 2007). 31 March 2007) in 2007.81m. 31 March 2008). Gabriel India started manufacturing Nickel Chrome plated inner tubes for front forks. New Product Developments Gabriel India has an R&D center for four wheelers at Chakan (Pune.. Gabriel India recorded sales of INR4. Gabriel India signed a supply contract with US-based Arvin Meritor. In 2005. Haryana) to manufacture aluminium tin bearings. OHSAS 18001 and ISO / TS 16949. Contracts In February 2006. Ford Ikon program and Hyundai Santro model. INRbn Operating profit. Year Gross sales. In 2005. INRm Net Profit. Arvin Meritor holds 15. 31 March 2008).60m (€1. The company supplies front and rear strut for the Tata Indica model. In 2005. Gabriel India commenced supplies of gas charged shock absorbers for Maruti Alto and Zen models. APA Kabaya. Certifications Gabriel India's plants have been certified ISO 9002 / 9001/ 14001.6% equity in the company. Gabriel India commenced supplies of shock absorbers for Toyota's Innova from its Chakan (Pune. Gabriel set up a new facility in Khandsa (near Gurgaon. Gabriel India began supplies to the Tata Ace program from its Dewas (Madhya Pradesh. In 2003. In 2005.7bn (€74. Gabriel is also received technical assistance from Kabaya's Spanish subsidiary. cartridges and shock absorbers to SOQI Inc. Gabriel India began supplies of shock absorbers and front forks to the TVS Star program. Gabriel India supplies 100% shock absorber requirement of Tata Motors in the SUV segment. and Yamaha (Japan). Maharashtra.24m. The plant also manufactures large sized bearings for railways and brushes for automotive applications. India) and an R&D center for 2/3 wheelers in Hosur (Tamil Nadu.The Indian Supplier Report of shock absorbers and McPherson struts. The extra-ordinary change in profits was attributable to earning gains from the sale of real estate held by the company in the last year.30m (€12. In 2005.63m.95m. SOQI for upgradation of technology for front forks and twowheeler shock absorbers. Gabriel India is the sole supplier to the HM Mitsubishi Lancer program. Investments In 2005. 31 March 2007) in the previous year. In 2005.5m (€1. Gabriel India established a R&D support facility at its Nashik (Maharashtra) plant for test and validation of shock absorbers and front Forks. The company has a technical arrangement with Japan-based Yamaha subsidiary. Gabriel India added a new plant in Gurgaon (Haryana) with technical assistance from Kayaba (Japan). Profit before tax declined sharply at INR123. INRbn Profit before tax. Financial Overview In the financial year ended 31 March 2008.21m. Gabriel India supplies front shock absorber for a Ford truck program. The company also has a product validation center at its Nashik facility. a decline of 21. Gabriel India won a supply contract from Suzuki Motorcycles India.53% compared to INR731. The company exports struts. India) facility. Maharashtra) facility.79% compared to the previous year's sales of INR6. India). Gabriel increased production capacity at its Hosur (Tamil Nadu) plant to meet the increasing demand of front forks for motorcycles. INRm © SupplierBusiness Ltd 2009 170 .01bn (€103. to supply ride control modules and components for OEMs and aftermarket. declining by 89. 31 March 2008) from INR981.95m. In 2004-05.60m (€16. 17 0.65 2008 2007 2006 2005 2004 Operating profit.96 16. €m 74.20 Profit before tax.85 4. €m 1.01 5.95 2.17 3.5 731.49 123.30 76.The Indian Supplier Report 2008 2007 2006 2005 2004 4. especially raw material are a cause of concern.21 0.48 0.30 262.33 8.70 6. €m 1.6 981.59 84.50 178.00 263.66 4.30 88.34 1.36 20.60 9.63 1.28 7.81 104. which have reduced the company's profits. The export strategy is expected to help ease pressure margins.78 4.80 Year Gross sales.90 166.90 Net Profit.65 3.63 78.39 0. © SupplierBusiness Ltd 2009 171 .21 12.12 Outlook Gabriel India's continued efforts to increase exports are beginning to pay off with contracts won in North America and Western Europe.60 153.24 103. Overall the twowheeler market is expected to grow steadily which shall translate into equivalent growth in volumes for Gabriel.62 4. €m 5. Input costs. Plot No. INR 3. 1. Joint ventures GKN Driveline India has a technical collaboration with its parent GKN Driveline International. Haryana. The company expanded its capacity by 20% annually over the next three years. General Motors India. Operation Dinesh Bhrushundi.com Senior Officers Sankaran Ravindran. GKN Driveline India announced its plan to invest in capacity expansion in its existing plants. SAN Motors and Tata Motors. GKN Driveline supplies to the Maruti 800. The new facility has a capacity of 660. Chennai which replaced GKN Driveline’s plant in Gummidipoondi. The main customers of the company include Fiat India.gkndriveline. the company expanded its production capacity in the existing plants by 20% each year until 2008. Honda Seil Car India. Mahindra & Mahindra. GKN Driveline is the supplier to the Tata Indica and Indica Vista programs. driveline parts. Quality Products Constant velocity joints. A strategic move made by the company was to achieve the contract for the Tata Nano which will set a precedent for ultra low cost cars. In 2001. drivelines and sideshafts Address GKN Driveline India Ltd. 31 December 2008) (Year to 31. GKN Driveline holds 96. the parent Uni-Cardon Invel Beteiligungsgesellschaft mbH was merged into GKN Automotive GmbH and name of the company changed to GKN Driveline India Ltd. The company supplies to the San Storm model. the company established a new plant in the region. sideshafts Recent Developments Corporate strategy GKN Driveline has traditionally enjoyed strong supply relationships with market leaders including Maruti Suzuki and Tata Motors. worlds’ leading supplier of driveline components.65m. Sales Ravindra Ojha. driveshafts. GKN Driveline India operates three plants employing 1. whose production was transferred to the new facility. To grow its relationships with other significant OEMs. company name was changed to GKN Invel Transmission.12. Managing Director Vinod Hans. Faridabad 121 005. 270. Contracts GKN Driveline has won the contract to supply driveshafts for the Tata Nano. In March 2002. Swift and Zen Estilo models.8% share in the Indian subsidiary.08) Employees c. constant velocity joints and sideshafts from its three plants.130 (31 March 2008) Certifications GKN Driveline India's Faridabad (Haryana) plant are accredited with ISO © SupplierBusiness Ltd 2009 172 . Investments In february 2008.4% and was delisted from the exchange and made private in 2003. GKN Driveline supplies driveshafts for the Toyota Corolla Altis. Ford Motors India. Currently. GKN Driveline supplies the Ford Ikon program.The Indian Supplier Report GKN Driveline India Constant velocity joints. The Indian subsidiary manufactures Driveline. India GKN Driveline India is the fully owned subsidiary of GKN Driveline. Further. In January 2006. GKN Driveline supplies to the Hyundai Santro and Accent models. Maruti Udyog. Tel: + 91 129 223 2531 Fax: + 91 129 223 0580 Internet: http://www. Sector-24. Tamil Nadu Sales c. GKN Driveline has a contract to supply Force Motors Matador model. GKN Driveline India was formed in 1985 by Uni-Cardon Group and then taken public in 1986. GKN Driveline India opened a new manufacturing facility at Oragadam. Plants India: Haryana (2). especially those in southern India. Hyundai Motor India. GKN increased its share in the company from 51% to 92.100 people. The company supplies to all major domestic OEMs.2bn (€50. The company is also a significant player in the aftermarket.000 sideshafts annually dedicated mostly for OEMs based in South India. In 1995. This saved GKN the capital and effort to shift equipment to Gujarat. © SupplierBusiness Ltd 2009 173 .2bn (€50.The Indian Supplier Report 9002 certificate. GKN’s contract to supply to the Tata Nano program will reward to company handsomely once the production commences in 2009. GKN plans to supply the Nano program from its existing facilities until production stabilises. All plants of the company are certified with QS 9000. Significantly GKN was followed a wait and watch strategy to invest in the Nana supplier park in West Bengal. Outlook GKN Driveline has maintained its market leadership in driveline products with access to critical technology from its parent company.65m. GKN Driveline’s plants are certified with TS 16949 quality certificate. GKN Driveline India's sales are estimated at INR 3. 31 December 2008). Financial Overview In the financial year ending 31 December 2008. GKN Sinter Metals has technical collaboration with Ecka Granules GmbH of Germany for copper powder. Pune 411 018 Maharashtra India GKN Sinter Metals is one of the leading suppliers of powder metallurgy components in the world catering to the requirements of automotive as well as non-automotive industries. The company supplies to Ford Europe and Renault Motors in France. of Japan for development and manufacturing of double layer valve seat inserts. Quality Products Powder metallurgy parts Recent Developments Corporate strategy In recent years. MicrMet Hamburg also has a buyback arrangement with the company. GKN Sinter Metals in India has two plants in Maharashtra (India) and employs approximately 520 people. Gabriel India. GKN Sinter Metals entered India in 1966 when it acquired Birfield. The company is looking at export opportunities.1m. GKN Sinter Metals set up a new plant in Ahmednagar (Maharashtra) to manufacture water atomised copper powder in technical collaboration with MicrMet Hamburg. Vice President. Vice President. The Indian subsidiary is the domestic market leader meeting almost half the requirements of the automotive industry. In India. Toyota Kirloskar Motor and Visteon Automotive Systems India. Delphi and ICD/TESMA. The technical partner. Kinetic Motor Company.08) Employees c. GKN Sinter Metals paid INR660m (€15. R & D DS Mrig. Plants Maharashtra (2) Sales INR1. In March 2002.com Senior Officers V Srinivasan.5m. Delphi Automotive System. Avtec. 146. Tata Motors. Executive Director. Honda Motorcycle & Scooter India. Hero Honda Motors. GKN acquired Mahindra & Mahindra's stake in the joint-venture and changed the name of company to GKN Sinter Metals. Joint-ventures GKN Sinter Metals has technical collaboration with Nippon Piston Ring Co. The company made an investment of INR45m (€1. the company supplies to Autotech Industries.3m. Acquisition In March 2002. Force Motors.The Indian Supplier Report GKN Sinter Metals Powder metallurgy components Address GKN Sinter Metals Ltd. the jointventure partner in Mahindra Sintered Product Ltd. Manufacturing NL Chandrachud. Pimpri. Maruti Udyog. Tel: + 91 20 2742 6261 Fax: + 91 20 2742 6273 Internet:http://www. Mumbai-Pune Road. JKM Daerim. thus integrating the Indian subsidiary into the parent. The Indian subsidiary has a wide customer base in domestic as well as foreign markets. 520 (2008) © SupplierBusiness Ltd 2009 174 .12. 31 March 2001) in this plant which has an installed capacity of 2400 tons per annum. Hindustan Motors. GKN Sinter Metals has technical collaboration with MicrMet Hamburg to manufacture water-atomised copper powder. 31 December 2008) (Year to 31. GKN Sinter Metals acquired the remaining 49% of Mahindra & Mahindra's stake in the joint-venture. Executive Vice President. Mahindra Sintered Product Ltd and assumed full ownership of the subsidiary. Investments In March 2001. 31 March 2002) for the acquisition. Sales & Export SA Shevade. General Motors India. Mahindra & Mahindra.gknsintermetals. Managing Director AL Deuskar. It also exports to leading tier. where it has not made significant headway in the last few years. Bajaj Auto. GKN Sinter Metals has aligned its production flow and quality procedures to with its parent company after the joint-venture partner was bought out by GKN.I automotive suppliers including Robert Bosch.6bn (€25. 31 December 2008).The Indian Supplier Report Contracts GKN Sinter Metals supplies powder metallurgy parts for shock absorbers manufactured by Delphi. The entry of Volkswagen and Renault in India will help GKN in supplying more sinter metal components as GKN shares a strong supply relationship with the two OEMs in Europe. GKN Sinter Metals supplies second-gear synchronizer hubs for fivespeed SUV transmissions manufactured by Toyota Kirloskar Automotive Parts. Financial Overview In the financial year ended 31 December 2008. Certification GKN Sinter Metals plant is accredited with TS 16949 from TUV GmbH of Germany. © SupplierBusiness Ltd 2009 175 . GKN Sinter Metals India reported sales estimated at INR1. Outlook Sintered part content per vehicle in Indian passenger vehicles is 6-7kgs which is far lower as compared to 30kgs in US and 18kgs in Europe.6bn (€25.3m. Punjab Tractors. In 1961.9m.6m tyres per annum with a facility in Waluj. Sri Lanka and Australia. Goodyear India received funds from parent Goodyear Tire & Rubber Company (USA) which were extended as External Commercial Borrowings. Goodyear has been a dominant player in the premium branded tyre market. tubes and rubber products Recent Developments Corporate strategy In recent years. Aurangabad (Maharashtra). The additional investment made in Goodyear India.co. SAT has a production capacity of 0. This lead to a reduction in interest cost. 28 March 2006) in its Aurangabad facility. a low value.in Senior Officers Prabhakar Jain. Finance Director Products Tyres. In Asia. a segment which has grown considerably over the past four years. Its customers include Eicher. Exports contribute for 10% of the company's annual sales. Despite this performance. Contracts Goodyear India supplies radial tyres for passenger cars to Maruti. Goodyear India invested INR 800m (€ 14. Goodyear imports tyres to fulfil Tata's contract. Acquisitions In 1997. Goodyear India also exports its products to Pakistan and Turkey and supplies tyres to Goodyear South Asia Tyres Pvt Ltd which in turn supplies to its customers in India. Goodyear established a 50:50 joint-venture with CEAT under the name South Asia Tyres (SAT) to manufacture steel radial tyres at its Aurangabad (Maharashtra) facility. Goodyear ranks second in terms of market share. In 1995. Investments In August 2006. Escorts. Maharashtra Sales INR 9bn (€140m.08) Employees c. Bangladesh. it still remains a small volume player as India is predominantly a small car market. USA. 31 December 2007) (Year to 31.12. Goodyear continues to retail its products in the same premises with an exclusive shop-in-shop setup for its products. Subsequently.8m tyres units. is to make it a strategic manufacturing base for tyre exports in the region. Goodyear India has the contract to supply cross-ply tyres for commercial vehicles to Tata Motors. In March 2006. Tel: +91 129 406 9000 Fax: +91 129 406 9051 Internet: http://www. The funds were used to repay high cost working capital loans availed from banks. Goodyear (USA) bought CEAT's entire share in the jointventure. The parent company holds 74% stake in the Indian subsidiary. Certification Goodyear India is accredited with ISO/TS 16949:2002 certification.goodyear. the company was converted into a public limited company and its name changed to Goodyear India Ltd. This investment increased its annual capacity by 25% to 1.The Indian Supplier Report Goodyear India Tyres and rubber products Address Goodyear India Ltd Ballabgarh Mathura Road Faridabad 121004 Haryana Goodyear India is the Indian subsidiary of Goodyear. Chairman & Managing Director Hugo O Dedekind. Goodyear Tyre and Rubber company (India) Ltd was established for trading in tyres and other rubber products. Ford India. high volume segment dominated by other tyre manufacturers.020 (2008) © SupplierBusiness Ltd 2009 176 . Goodyear India acquired its joint-venture partner CEAT's stake in South Asia Tyres Ltd (SAT). Goodyear India announced the conversion of its exclusive retail stores into multi-brand retail outlets at the cost of INR 400m (€6. In 1922. Goodyear exports to 15 countries including Pakistan. Goodyear supplies to C-segment vehicles and highend SUV programs. Group: 1. Plants Haryana . TAFE and Tata Motors. Maruti Udyog. 31 August 2006). Nepal.73m. In 2004. 36 7. 31 December 2007) compared to INR451. The higher margins earned in the premium segment will ensure Goodyear remains competitive and stays away from the intensely competitive.01 96.00 8.74 Profit Before Tax.00m.22 Net Profit.5 -126. high volume part of the business.60 5. INR bn 9. 31 December 2006) in the previous year.36 126. Year 2007 2006 2005 2004 2003 Year 2007 2006 2005 2004 2003 Net sales.75m.43bn (€150.5 Operating Profit.3m (€6.15 94.47 Operating Profit.0m.26 4. © SupplierBusiness Ltd 2009 177 .37 2. € m 10. 31 December 2007) an increase of 6.01 -2. high capital instensive.4 156.43 6. Financial Overview In the financial year ended 31 December 2007.9 104.84% to INR402.50 Net sales.75 1.76% over previous year's figure of INR8. INR m NA 754 334 260.01 -2.3 451.5 554. the company has not been able to create a substantial market share. Goodyear India launched "Eagle F1 GS-D3" an ultra-high performance passenger radial tyre. €m 6.00 142.4 0.5 -126.65 0. net sales of Goodyear India was INR 9bn (€140.9 Net Profit.73 5.The Indian Supplier Report New Product Developments In August 2004.2m (€7. 31 December 2006).22 Outlook Despite the fact that Goodyear has long been making tyres in India. €m 140. The tyres incorporated the Trinuum technology and were made available for all existing brands such as GPS-2 and Eagle NCT 3 for the small mid-size as well as luxury cars produced for India.9 Profit Before Tax.2 88 0. In 2001. Goodyear’s decision to compete in the high end products differentiates the company from the regional and international players in the market. € m 12.96 0. Spiralling cost or oil derivatives and rubber lead to higher input costs while the company could not pass on the complete hike in input costs to the customers. INR m 402. Goodyear India launched tubeless radial tyres for passenger cars. Its endeavour to become an export hub and widen its product range into commercial vehicles tyre will derisk the company from the domestic passenger car market.36m.95 6. Net profit decreased by 10.53 1. INR m 647.23 9. Uttaranchal Recent Developments Corporate strategy In recent years. Mahindra & Mahindra. Maruti Udyog. Halonix derives half its sales from exports. Distt Gautam Budh Nagar Uttar Pradesh 201 305 India Halonix is a leading supplier of halogen lamps to the automotive industry apart from supplies of general lighting. Automotive lamp business accounts for about 45% of the company’s sales. Minda Industries. In February 2008.5m halogen lamps and other bulbs per annum at an investment of INR120m (€2. JMAHella. Vice President. Pheonix Lamps was incorporated in 1991 as a joint sector company with Pradeshiya Industrial & Investment Corporation of UP Ltd (PICUP). In October 2008. Europe is the largest export destination for Halonix. with the strongest demand coming from Germany. Middle East. In the domestic market Halonix supplies to Bajaj Auto. The company has two units in NOIDA Special Economic Zone near Delhi of which one is a 100% Export Oriented Unit. 31 March 2008) Employees c. Ltd (PEC). Halonix signed an agreement with NVC China to manufacture speciality lamps in India.77m. Halonix plans to increase capacity from 80m lamps to 150m lamps per annum by end of 2008.6bn (€56. Halonix targets sales of INR5bn (€79m. the company started its Dehradun (Uttaranchal. UK based private equity firm Actis acquired 65% stake in the company from founding promoter family. Ltd (SOEI). Lucas TVS. with improved demand for higher-end products and easier access to production technologies. NOIDA Special Economic Zone Noida Phase-II. India) facility to produce 1. The company has created significant revenue streams in European and North American aftermarkets by supplying replacement headlamps as the demand for these surged due to the enforcement of international Day Light Running norms in 2005-06.com Senior Officers Rajiv Prasad. 1. Force Motors. 31 March 2005) to expand Noida and Dehradun based facilities. Lumax Industries. South-East Asia and Europe. Halonix took a term loan of INR 50m (€ 0. Tel: + 91 120 25629 52 -57 Fax: + 91 120 2562 943 Internet: http://www. Sales & Marketing Products Halogen lamps Plants Uttar Pradesh (2). Halonix sought fresh loan from IDBI worth INR 100m (€ 1.35m. Hi-Lux.The Indian Supplier Report Halonix Lamps Address Halonix Ltd. Halonix has focused on establishing itself as a leading supplier of halogen lamps despite having reasonable technical exposure to newer technologies. Japan and Soei Tusho Co. Japan and Soei Tusho Co. TVS Motor Company and Volvo India. Japan. General Motors India. the company was renamed Halonix Ltd. Tata Motors. Managing Director Rakesh Zutshi. a state government financial organisation in technical and financial collaboration with Phoenix Electric Co. Neolite Industries. 59-A. Halonix exports mainly to Australia. © SupplierBusiness Ltd 2009 178 . In 2006. However.89m. The company is aggressively eyeing business for passenger car and two wheeler programs. Ltd (PEC). 31 Dec 2003). Halonix commenced manufacturing operations for HID lamps in 2008.phoenixlamps. Its other facility is based in Dehradun (Uttaranchal). Sales INR3.1m. Halonix has also initiated work to enter tail lamp manufacturing business by 2009. In 2003. 31 March 2008) by the end of 2008-09. Hyundai Motor India. China.950 (March 2008) Contracts Halonix has the contract to supply headlamps for the Tata Nano. 31 March 2005) to set up a facility in the Noida Special Economic Zone. Ltd (SOEI). Japan. Investments In 2004-05. Joint-ventures Halonix India has a technical and financial tie-up with Phoenix Electric Co. 52 170.929.74 346.35 2.27 133.10 8.38 2.3 393.44 4.38 Profit before tax.327.48 2. 31 March 2008) compared to INR 314. demand from the aftermarket has remained steady.22m. €m 56. 31 March 2008) during the financial year ended 31 March 2008 compared to sales of INR2.01 2.58 5. ISO 14001:2004 and OHSAS:18001 status.03m (€8.18 1.74 235.98m. Financial Overview Halonix recorded sales worth INR3. Net Profit improved by 52.67 481.6bn (€56.44m.29 Gross sales.5% to INR480.02m (€5.03 302.52m.32 8. 31 March 2007) in 2007.22m.33 34.15 30. Certifications Halonix has been accredited with ISO 9001:2000. an increase of 28. 31 March 2007) in 2007.628. Profit Before Tax for 2008 was at INR520. New Product Developments Halonix has recently added new automotive products named H13. INR m 520.81 450. INR m 480.27 93. Night Vision and Xtra Performance to its portfolio.35 1. INR m 702. €m 7.The Indian Supplier Report Halonix supplies H8 LED lamps for the Maruti Suzuki Swift and Swift Dzire models. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales.566. Further its exports to the aftermarket in North America and Europe is expected to remain steady.74 Outlook Demand for automotive lamps is tied to the new vehicle sales and aftermarket consumption.97 6.38 6.14 Net Profit.22 4.22 5. € m 8. 31 March 2008) compared to INR302.36%. 31 March 2007) in 2007.42 Operating profit.04m (€52. INR m 3.35 123. While new registrations are growing at a slower than anticipated rate.04 314. Halonix will witness robust growth in revenues with the commercial introduction of the Tata Nano in 2008-09. Long Life.98 43.02 238. € m 11.21 1.35 47.778. © SupplierBusiness Ltd 2009 179 .82 Operating profit.74m (€ 5.44 3.78bn (€47.35m. TS 16949:2002.48 Profit before tax.49 Net Profit. 31 March 2008) Employees c. Hosur 635 114 Tamil Nadu. Maharashtra . This has helped the company reduce product development time andled to improved relations with OEMs. The company has expanded its presence in the bus and tractor markets where it is the leading player. 31 March 2007) in 2007. In 1998.com Senior Officers H Lakshman. Tel: + 91 4347 233 445 Fax: + 91 4347233 460 Internet: http://www.54% to INR93. operations of Roloforms Polymer were merged with Harita Grammer Ltd. 31 March 2008). In 2004. Harita has benefited from the overall buoyant demand for vehicles in India. Certifications Harita Seating Systems is accredited with ISO 14001-2004 status.Finance Recent Developments Corporate strategy In recent years. While initial technology came from Grammer. Its focus on research and development and regular launch of new products has kept its profit margin secure. one each in Hosur (Tamil Nadu). Chairman S Thiagarajan. Eicher. In 1986. Himachal Praders and Pune (Maharashtra) to supply seating systems to customers based in the regions. Harita launched a new passenger seats platform and "ELITE" series of bus seats with new features. In 2003.4% compared to INR1. Harita launched "Innova" plastic seats for city buses.91bn (€30. Harita Seating Systems was established as a joint-venture between the TVS Group and Grammer of Germany. Harita Seating Systems added bus interior and trim production line at its Hosur unit. Escorts. bus interior trims Plants Himachal Pradesh .33m.The Indian Supplier Report Harita Seating Seats Address Harita Seating Systems Ltd.haritaseating. Products Seats. Tata Motors and Volvo. Tamil Nadu Sales INR1. Harita is developing seating for all segments of the bus sector while achieving growth in tractor and export segments. the TVS Group bought out Grammer's share in the venture in 2002. 31 March 2008). The company has been certified with ISO/TS 16949. TAFE and Voltas. Net Profit for the financial year 2008 was INR64.9m (€1.39m (€1. India The company is a leading supplier of seating systems to a wide range of vehicles. Harita operates three plants.91bn (€30. New Product Developments In 2005. Profit before tax increased by 8. Harita Seating Systems generated sales worth INR1. General Manager. Mahindra & Mahindra. 350 (31 March 2008) Financial Overview In the financial year ended 31 March 2008. 31 March 2008) in 2008. Harita Seating Systems commenced production of seats for OEMs and other clients at a greenfield facility at Nalagarh (Himachal Pradesh). Harita opened its R&D centre. Investments In 2006. Harita's commercial vehicles customers include Ashok Leyland.Now Harita is seeking contracts for export models. President V Thiagarajan.33m. 31 March 2007) in 2007. Belagondapalli. John Deere. When Grammer faced poor economic conditions. In 1997. Also in 2006.95m. an increase of 16.49m. New Holland.77% compared to INR55.86m.56bn (€26. It operates through three plants based in the Maharashtra and Tamil Nadu.02m.14m (€0. Harita has established its own R&D Centre. the company launched new generation suspension platforms for commercial vehicle driver seats. © SupplierBusiness Ltd 2009 180 . a growth of 22. Hosur-Thally Road. Its off-road vehicle customers include Caterpillar. L & T Komatsu. INR m 93.9 86.67 Profit Before Tax. Its growth will depend on winning new contracts and the growth of the CV and tractor business.77 Net Profit.39 55.75 1.27 Net Profit.49 1. € m 1.27 1.86 25.4 Operating Profit.84 133. With R&D done in-house.37 1.19 Operating Profit. INR m 64. its foray into theatre and auditorium seats will hedge the company against the cyclical nature of the automotive industry.02 0.95 1.48 1. €m 1.18 43.79 89.33 26.69 71.18 0.14 61.88 17.33 2. Further.92 Net sales.12 98.76 2.82 Outlook Harita is a focused player in the seating business with buses and tractors as its thrust area. INR bn 1.83 68. INR m 173.80 0. € m 30. © SupplierBusiness Ltd 2009 181 .49 1. Harita is expected to continue introducing new products. € m 2.56 1.58 20.51 94. It is relatively small in the passenger car business and fairly regional in its footprint.15 0.87 45.76 1.91 1.13 Profit Before Tax.92 134.The Indian Supplier Report Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales. com Senior Officers Deep Kapuria. TVS. Caterpillar.08) Employees c. an engineering services subsidiary and an arm into robotics. Hi-Tech's joint-venture with Getrag is solely established to meet an international demand and has resulted in a buy-back arrangement. softwares and robotics. a jointventure with Getrag. Sector . Hi-Tech also has interests in engineering. transmission gears & shafts. Joint-ventures In 2005. the company has been striving to move out of its concentration from being a vendor for two-wheeler requirements to enlarging its presence in other vehicle categories as well . Tower . Investments In 2005. timing gears.97m.85bn (€45. a Honda associate vendor. The axle shafts are being sourced by Getrag for assembling in its allwheel-drive division and then supplying to GM (USA). CFO & Vice PresidentCorporate Affairs Vijay Mathur. Honda Siel Cars. Currently. Mahindra & Mahindra. 31 March 2005). Hi-Tech's customers include Ashok Leyland. to supply to Hero Honda. An international procurement office was established as part of the joint-venture in India for exports. DaimlerChrysler. power take-off unit for off-highway vehicles. wheel spindles Plants Rajasthan.27. precision forgings & precision machine parts. Further. New Holland. The arrangement with Kyushu Musashi remains a technical need-based one and there is no equity partnership.B Unitech's Millennium Plaza South City. Eicher. Manesar Sales INR2. Deputy General ManagerFinance Recent Developments Corporate strategy Hi-tech gears has been following a strategy which hinges on the strength it derives from its collaborations . Tel: + 91 124 2806080 .18m. Its association grew beyond Hero Honda as other Honda companies including Honda Siel Cars. Cummins.97m. Products Engine sprockets. entered India.hitechgears.The Indian Supplier Report Hi-Tech Gears Gears and transmission components Address Hi-Tech Gears Limited 14th Floor.89 Internet: http://www. In 2005. The plant undertakes production of timing gears and export requirements. Hyundai.87. Volvo and Yamaha Motors India. The equal focus on domestic and global markets is a strategy to de-risk its business in the long-term. Royal Enfield. Hi-Tech struck a technical tie-up with Getrag Corporation (Germany) in 1996 and with time this arrangement paved a way for a 50:50 joint-venture in 2000. the company has been strongly following lean manufacturing techniques. It has set an aspiration to be a US$1bn company by 2015 with sales generated equally in the domestic and export markets.03. Honda Motorcycles and Scooters India and Honda Siel Power Products. Gurgaon Haryana India Hi-Tech Gears is based on two collaborations and primarily supply the two-wheeler sector apart from passenger car. Hi-Tech Gears has a technical tie-up with Honda supplier Kyushu Musashi (Japan) for two and four-wheeler transmission parts.its technical tie-up or joint-venture. Hindustan Motors. Hero Honda. TPM practices and has benchmarked itself against global standards to reach its ambitions. Maruti Udyog.84 Fax: + 91 124 2806085. Ford. Contracts In 2005. Further. Getrag. the Hi-Tech Group consists of two manufacturing facilities. 31 March 2005) in its new Manesar (Haryana) plant. Hi-Tech formed a 50:50 joint-venture with Getrag Corporation for manufacture and exports of axle shafts. Honda Scooter & Motorcycle India. 31 March 2008) (Year to 31. Currently. The plant was established at an investment of INR450m (€7.both domestically and internationally. off-road and commercial vehicles markets. Chairman & Managing Director Pranav Kapuria. Hi-Tech began with technical tie-up with Kyushu Musashi. Honda Siel Power Products. Hi-Tech won a contract to supply finished gears for the Hero Honda CD100 model. Cummins India. Hi-Tech invested approximately INR 450m (€7. Bosch. Deputy Managing Director Deepak Rai. Hi-Tech commenced supplies of axle shafts to Getrag from its new Manesar (Haryana) facility. 680 (2008) © SupplierBusiness Ltd 2009 182 . wheel hub. 31 March 2007) in 2007.94 Operating Profit. It faces margin pressures with an increase in raw materials but higher value addition through technology in products will help it offset some of the pressure.53% to INR97.99bn (€51. Financial Overview In the financial year ended 31 March 2008. INR m 97. It has two strong partnerships with Getrag and Kyushu Musashi which will provide it with updated technologies for new products in the future.57 124.95 3. Hi-Tech Gears will grow also on the growing domestic market where it supplies to both two and four-wheeler OEMs.73 2.79 41. Hi-Tech supplies engine gears to New Holland.38 0. Profit before tax increased by almost 13.47 92.51 1.98 Operating Profit. INR m 2.04 223. 31 March 2008) compared to INR 83.96 31.75 4. Hi-Tech won a supply contract from Robert Bosch to supply injector flanges for CRDI systems.43 2.32 184. € m 2. €m 1.12% compared to INR2.93% to INR134. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales.34 78.32m.253. Hi-Tech supplies engine gears to Caterpillar.46 84.02 2.79m.796. INR m 386.The Indian Supplier Report In 2005.47m (€2. a drop of nearly 5.31m (€1.388. 31 March 2008) from INR134. © SupplierBusiness Ltd 2009 183 .77 Gross sales. 31 March 2007) in 2007. Hi-tech gears recorded sales of INR2.20 1. 31 March 2007) the previous year. Certification Hi-Tech has been accredited with QS 9000 and ISO 9002 certifications.46 Profit Before Tax.57 Net Profit.55m. Net profit for the year increased by 17.72 2.85bn (€45.32 1. INR m 153.21 134.43m. 31 March 2008). €m 45.18m.21 Profit Before Tax.52 Net Profit. Hi-Tech supplies crosshead valves to Cummins.01 52.06 333.44m.41 3.998.55 1.47m (€2. € m 6.98 Outlook Hi-tech Gears is focused on high technology and quality products for the domestic and global markets.18 51.19 237.03 1.81 1.44 1.845.92m (€1.92 83.80 25.31 55. Export is a long-term focus for the company which it is striving to increase to 50% of total sales from a current 25%.13 5. 70 Operating Profit.13 493. Associate Vice President. Tel: +91 44 2824 1887/ 5214 3592 Fax: +91 44 2822 0410 Internet: http://www. IPRL developed chrome plating and other coating techniques to increase ring life and optimise performance with reference to the oil consumption. IP Rings’ sales mix between OE and replacement market supplies has changed from 50:50 to 80:20. (Finance) & Secretary N Gowrishankar.21 © SupplierBusiness Ltd 2009 184 . General Manager. Contracts IP supplies its products to all major Indian OEMs. 31 March 2008) New Product Developments In 2005. The average life of a piston ring in India continues to be one eighth of that of a developed nation. The latter holds 9. INR m 540. an increase of 9.67m. Tata Motors. synchro-cones Plants Tamil Nadu Sales INR540. College Road Chennai 600 006 Tamil Nadu India IP Rings is an Amalgamations Group company. Hyundai Motor India. INR m 92.87 51.18m (€0. pinions.54 119.13m (€8. Japan for piston rings. IP is among the few companies in India to manufacture Niflex-S type rings.The Indian Supplier Report IP Rings Piston rings Address IP Rings Ltd Arjay Apex Centre 24. special alloy steel rings. 31 March 2007) in 2007.53m. For the aftermarket. Around 60% of IP's production is for OEM customers. nifflex expander based three piece oil rings.31m (€1. Profit before tax decreased by 33. grey cast iron steel rings. a decrease of around 35% over INR38. Simpson & Co.94 484. compared with INR60.04m.18 60. 220 (2008) Financial Overview In the financial year ended 31 March 2008. Managing Director S Rangarajan.71 107.04 38. With the maturing of the Indian market. Chairman N Venkataramani.com Senior Officers A Silvasailam.04m (€0.iprings. Tractors & Farm Equipment and TVS Motor Company. IP Rings manufactures steel rings and cast iron rings for pistons.60 Net Profit.94m (€8.35 Profit Before Tax. with an installed capacity of 10 m piston rings per annum. Certifications IPRL has been accredited with TS 16949 status. The company incurred R&D expenses amounting to 1. Year 2008 2007 2006 Net sales. In less than a decade. IP Rings generated sales worth INR540. It manufactures a wide range of piston rings based on its strong capabilities in various surface engineering technologies. 31 March 2007) in 2007. Mahindra & Mahindra. Eicher Motors.63m. IP customers include Ashok Leyland. Vice Chairman KV Shetty. blow-by and emission legislations. INR m 25.13m (€8.53m.35% compared to INR493. 31 March 2007) in 2007. Hindustan Motors. INR m 40. Joint-ventures IPR has a technical collaboration with Nippon Piston Ring Co.8% of the total sales in 2008. The company has intensified its internal cost control measures to maintain margins as OE supplies enjoy lesser margins compared to aftermarket. IP uses the distribution network of its sister concern. Maruti Udyog.4m. 31 March 2008). IP rings is focusing on supplying higher quality piston rings to OEMs and reducing its dependence on the fragmented replacement market. 31 March 2008) in 2008.31 77. India Pistons.4% to INR40. Employees c. Executive Director N Ramakrishnan.87m (€0.99% equity in the company. 31 March 2008) in 2008. The company recorded a net profit of INR25. Marketing Recent Developments Corporate strategy IP Rings is a market leader in piston rings in the south Indian automotive cluster. Products Bevel gears. differential shaft gears.53m. nodular iron steel rings. © SupplierBusiness Ltd 2009 185 .86 2.30 1.70 Operating Profit. the company is well positioned to grow in the fast growing Indian car market.53 9.86 1.42 70. € m 0.67 0. €m 8.94 49.88 0.40 0.The Indian Supplier Report 2005 2004 442.83 7. € m 0.96 47. its performance has reduced due to focus on OEM supplies where raw material price surge and pricing pressures have taken their toll but in the long term.04 1.17 105.97 Year 2008 2007 2006 2005 2004 Net sales.33 Net Profit.63 1. In the recent times.95 0. IP Rings being priced significantly higher than lower grade producers is less likely to enjoy a growth in the aftermarket.90 Profit Before Tax. However.22 1. several piston ring suppliers are keen to fortify their presence in the aftermarket for growth.40 412.00 101.44 1.90 Outlook With excess capacity in the domestic sector. € m 1.65 73.46 1.03 7.53 8. Joint-ventures Jay Ushin is a joint-venture between the Minda family and U-Shin. General Motors India. Mahindra & Mahindra. heater panel assembly. Tamil Nadu Recent Developments Corporate Strategy Jay Ushin. Tata Motors and Yamaha Motors India. Jay-Ushin group companies have numerous other technical joint-ventures. Managing Director MM Gupta. Jay Ushin has technical assistance agreement with Shinchang Electric Co.5m(€37. U-shin holds 25% equity in the company. Bajaj Auto. door latches. keyless entry. defogger switches. Sales INR 2.The Indian Supplier Report Jay Ushin Body parts. Fiat India. Kinetic Motors. Gurgaon-122001. Ltd. door latches and switches. hood latches. with Shinchang Electric Co of Korea for key sets and multifunction switches. panel switches. Jay Ushin has technical collaboration with YNS Inc. Eicher.77m. Vice President. Hyundai Motor India. the company became operational and started supplying lock sets to Maruti Udyog. Royal Enfield. With the increase in volumes of the industry and the shift of product mix towards high-end security systems. strikers Switches: combination switches. of Japan for instrument clusters. © SupplierBusiness Ltd 2009 186 . of Japan. Japan. Tel: +91 124 6340423 Fax: +91 124 6340333 Internet: http:// www. of Korea in 1998 to manufacture key sets and multi-function switches for Hyundai Motor India Ltd. Honda Motorcycle and Scooter India. Honda Siel. Hindustan Motors. Ford India.05) Employees c. Technical Director Ashwani Minda. remote locking Body parts: central locking. From 1996. Sector 18. stop and back-up lamps Others: heater control lever assemblies. Jay Ushin was awarded the contract for supply of lock-key-sets and components for a new car model by Hyundai Motor India. Escort.12. Hero Honda. Jay Ushin supplies to almost all major automobile manufacturers in India. 31 March 2008) (Year to 31. Cummins India. Jay Ushin has technical assistance agreement with YNS Inc.Finance Jay Ushin was set up in 1986 as a joint-venture between the J P Minda Group of India and U-Shin Ltd of Japan to manufacture auto electrical. the company began supplying instrument clusters to Maruti Udyog. Haryana. hazard warning. continuously launches new productsto meet the increasing demand of security system products in the industry.jpmgroup. The company also has a tie-up with YNS Inc.in Senior Officers JP Minda. Jay Ushin stands to gain. for the production of lock sets. The company has a collaboration with U-Shin of Japan for automobile locks. Maruti Udyog. tank units Plants Haryana (2). Products Security systems: immobilizers. The group has plans to expand through setting up of new units and further new joint-ventures and also setting up overseas offices. India Jay Ushin is a leading supplier of lock sets.HSIDC Industrial Estate. Swaraj Mazda. door handles. key sets.co. power window. Chairman Anil Minda.650 (2008) Contracts In 2004-05. It supplies to nearly all the automobile manufacturer in India. of Korea. door latches.378. with the help of its joint-venture partners and technical collaborators. GP 14. Main customers of the company include Ashok Leyland. handle bar. security systems and switches Address Jay Ushin Ltd. Ltd. Jay Ushin supplies lock-key-sets and glove boxes for the Hyundai Accent. The company had also signed another technical collaboration agreement with Shinchang Electric Co. In 1989. instrument clusters and switches in India. mechanical and electronic components for four wheelers. of Japan for instrument clusters since 1995. the company sales will grow. up by 57.39 0.34 14.21 14. Alto.42 1.47 1.378. New Product Developments Jay Ushin developed M/F switches.21m (€0.77m.378.5m(€37.00 15. 31 March 2007) in 2007.65 802.99 22. €m 0.45 85. In the future.67 Profit Before Tax.17 Profit Before Tax. profit before tax decreased by 190% to INR65.34m (€1.29 0.99m (€1. However.45m (€26. INR m 144.77 26. an increasing content per car produced by the company will support the growth. €m 37.76 23.50 1.37 1. It also supplies central locking for Alto.R. 31 March 2008).511. 31 March 2008) over INR22.47m. 31March 2007) in 2007. Net profit of the company also decreased by 224% to INR 42. Jay Ushin’s sales of security systems is expected to grow. Jay Ushin developed handle bar switches and lock set modular switches for KSPA and new motorcycle model KPLA/KRPA by Honda Motorcycle & Scooter India Certification Jay Ushin has been accredited with ISO/ TS 16949:2002 status.00m (€0.22 89.95 762.10m.29m. € m 1.511. this competition is likely to intensify with increasing presence of global safety system products suppliers.10 19.The Indian Supplier Report The company also supplies power window switches and back up lamp switches for the Hyundai Santro program. panel switches and power window switches for Santro and Ascent model of Hyundai Motors India Ltd.45m (€2.05m. 31 March 2008) as compared to INR85.42 0.22m. € m 2.39m. 31 March 2008) as against INR13. The company reported an increase in operating profit by 69.65 80.25 Operating Profit.67m. Going forward.45 38. However.26% to INR144.75 23.05 0. Jay Ushin supplies heater assemblies to Honda Jay Ushin supplies lock-sets for the HM-Mitsubishi Lancer.68 0. Wagon. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales. It also developed door latches and inner door handles for Indica model.038.52 23. Jay Ushin supplies lock-key-sets and latches for the Maruti 800. The company has a mass vehicle producers as customers. INR m 42. Further.21 13. with increase in domestic sales and car exports from Hyundai and Maruti. INR m 65.22 0.75m (€0. INR m 2.45 1. 31 March 2007) in 2007.46 Operating Profit.43 Outlook With increasing concern for car thefts in India.34 73.21 Net Profit.68 Net Profit.57 36. Jay Ushin recorded sales of INR 2. Jay Ushin developed A/C control panels for Indica and Safari model of Tata Motors.67 0. the company faces stiff competition from domestic players. © SupplierBusiness Ltd 2009 187 . Financial Overview In the financial year ended 31 March 2008. 31 March 2007) in 2007. WagonR and Baleno.29 1.44 0.36% as compared to INR1.82 Net sales. Investments In the financial year 2006.7m. Jaya Hind invested INR1bn (€17.42m. Ashok Leyland. Jaya Hind has structured its operations into pressure die-castings.The Indian Supplier Report Jaya Hind Aluminium die-castings and automotive components Address Jaya Hind Industries Ltd. R&D Jaya Hind.08) Employees c.2bn (€18. Hindustan Motors. Head. the company formed a partnership with Bridge Aluminium (UK) for the manufacture of turbo chargers and castings. formed an alliance with Handtmann (Germany) and VAW Mandl & Berger (Austria). brakes calipers. clutch housing. tool rooms. manufactures aluminium castings and automotive components including auto electrical products. 31 March 2005) to supplier 75. Jaya Hind started its automotive components business in 1964. to manufacture cylinder heads for Ford's Sigma engines.670. timing case cover. Also In 2005. Maruti Udyog. Mumbai-Pune Road. Tata Toyo Radiators and TACO. In 2004. turbo charger castings and turbo charger pipes. Fiat India. GM. Gestetner India. Its domestic customers include. cylinder head cover. Manager. Rane TRW Steering Systems. oil cooler head. Jaya Hind formed a partnership with Heck & Becker (Germany) to design and manufacture large pressure die-castings upto 4000 tons. Mahindra & Mahindra. Joint-ventures In 2005. ignition coil. water pumps to OEMs. 31 March 2008) by 2011. Force Motors.5bn (€55. Jaya Hind has invested over US$25m (€20. Managing Director SR Shivshankar. alternator mountings. Lumax Industries. Pune (Maharashtra) plant. Kinetic Engineering . GM.5bn (€23.000 cylinder heads per annum for Mahindra Scorpio's common-rail diesel engines. 31 March 2005). fabrication and gravity die-castings divisions. Jaya Hind set-up the country's largest pressure die-casting facility at Pune and in 1998. India has emerged as a strong supplier of die-cast components and Jaya Hind is eyeing export opportunities for its casting and machined components. In 2005. AC generators and fly-wheel generators for two and three-wheeler sectors. part of the Force Motors group. Plants Maharashtra (3) Sales INR 3. MAN and Peugeot. Production US Prabhu. the company invested around INR80m (€1. Jaya Hind supplies Sigma Series engine heads to Ford India for the Ford Fusion model.jayahind. The company has sought product specific alliances with international suppliers. Kinetic Motor Company. The company achieved export sales of INR1. The company collaborated with Denso (Japan) for the manufacture of ignition coils in 1989. 31 March 2008) (Year to 31. Jaya Hind formed a partnership with Heck & Becker (Germany) for large HPDC dies and in 2005. pressure die-casting.12. 31 March 2008) in 2008 and plans to increase this to INR1. Ford Motors. fly-wheel generator. Cummins India.000-100. auto components. clutch plate. Its international customers include Daimler. In 2004.com Senior Officers Prasan Firodia. 31 March 2005) for capacity expansion at the Urse. General Motors India. Sales Anand Mangrulkar. 31 March 2006) to upgrade technology and enhance capacity. Jaya Hind invested around INR35m (€619. Tata Motors. Eicher Motors. differential cover. Akurdi. In 1997. 1. when it set up a pressure die-castings plant in Pune (Maharashtra). oil sump. crank case. Motor Industries.7m. Exports DN Narvekar. Knorr Bremse Systems. It also supplies clutch discs and clutch cover assemblies. the company formed a partnership with Bridge Aluminium (UK) for turbo chargers. Products AC generators. wiper motor and water pumps Recent Developments Corporate strategy In recent years. Pune 411 035 Maharashtra Tel: +91 20 2747 3981 Fax: +91 20 2747 4827 Internet: http://www.96m. Premier Seals India.3m. cylinder head cover. Hero Honda Motors. intake manifolds. Operations SM Kathavate. brake caliper. Though established in 1946.7m. coolant pipes. In 2005.520 (2008) © SupplierBusiness Ltd 2009 188 . VP. Jaya Hind has upgraded its manufacturing operations and product development capabilities. It is a leading supplier of ignition coils. Jaya Hind supplies the entire gearbox housing for GM's Chevrolet Tavera model. The company has become one of the largest producers of aluminium cylinder heads. Jaya Hind was awarded the contract for the Mahindra-developed 'Eagle' petrol engine project. The establishment of Volkwagen and General Motors assembly plants around Pune will help the company in achieving its growth in sales. 31 March 2008). It is the single source supplier for Scorpio's gearbox and is currently developing transaxle gearbox housing for the Mahindra Champion.5bn (€55. The company does not disclose its detailed financial results. Financial Overview For the financial year ended 31 March 2008. In 2005. deployed in common-rail engine technology in India. 31 March 2005) to supply the entire aluminium casting requirements for two of MAN's large volume engines. The company's vision is to attain exports accounting for 50% of its sales. In 2005.3m.The Indian Supplier Report Contracts Jaya Hind supplies cylinder heads for the Tata Indica Vista program. It supplies cylinder heads for the Isuzu engine produced by Hindustan Motors. Outlook Jaya Hind Industries has emerged as a strong casting supplier with upgradations in facility carried out since 2004. © SupplierBusiness Ltd 2009 189 . Jaya Hind won a contract worth around INR400m (€7. Jaya Hind achieved sales of INR 3.1m. Investments In September 2004. 30 September 2004) in its car and truck radial facilities to increase capacity.09. JK Tyres acquired Mexico based tire manufacturer Tornel for INR2. The company has aggressively targeted the export market with the acquisition of Tornel. Madhya Pradesh. JK Tyres is also the largest exporter of tires from India and ships to 75 countries across the six continents.7bn (€42m. JK Tyres plans to increase capacity at its existing plants in India to 12m tires per annum by 2011 from 8. commercial operations started in 1974.com Senior Officers Hari Shankar Singhania. Germany for steelbelted truck radial tires. Vikrant Tyres had a strong presence in the southern region of the country. In 2004.13m. USA for a five year period. The acquisition of Vikrant added two manufacturing facilities at Mysore (Karnataka. India) coupled with an increase in market share in the commercial vehicle segment. The company went on to extend technical ties in collaboration with General Tire International Co. Rajasthan Mexico (3) Recent Developments Corporate Strategy JK Tyres is the leading proponent of radialisation of truck tires in India and is presently the market leader in this segment.000 automotive tires and tubes per annum.jktire. 30 June 2003) in its Vikrant tires facility to increase radial capacity at its Mysore plants. 30 June 2003) in its facilities including INR750m (€14.08) Employees c. JK acquired the operations of Vikrant Tyres. Tata Motors and Volvo. JK Industries expanded its presence by opening offices and subsidiaries in Moscow. The company accounts for about 28% of India's tire exports. the technical arrangement was extended in 1981.35m.90m 30 June 2003) to INR1. Deputy Managing Director Swaroop Chand Sethi. Acquisitions In April 2008. The acquisition added a production capacity of 290 tonnes per day to the earlier capacity of 650 tonnes per day. In 1971. Managing Director Vikrampati Singhania.5bn (€28. 30 April 2008). Director JK Industries owned JK Tyres is the 18th largest tire manufacturer in the world and third largest in India. Joint-ventures JK Tyres has a technical collaboration with Continental AG. With a licensed manufacturing capacity of 400. The company has a strong focus on radial tires and is a market leader in truck and bus sector with a 26% share and a 27% market share in the LCV segment. 30 September 2008) (Year to 30. 6.14bn (€412. Products Tires Plants India: Karnataka (2).The Indian Supplier Report JK Industries Automotive tires and tubes Address JK Industries Link House 3 Bahadur Shah Zafar Marg New Delhi 110 002 India Tel: +91 11 331 1112 Fax: +91 11 332 2059 Internet: http:// www.7bn (€32.7m currently.971 © SupplierBusiness Ltd 2009 190 . UK and Hong Kong. Chairman Raghupati Singhania. JK Industries was incorporated as a managing agency in 1951. Sales INR28. Niche off-the-road tire market is being studied by the company as the demand for such tires has increased considerably in the last four years.17m. Subsequently. The company runs a retail chain under the JK Tyre Steel Wheel brand with 129 outlets in India.25m. JK Tires announced an estimated cumulative investment of INR1bn (€18. To keep pace with the growth in demand. the company shifted its focus towards automotive tire and tube manufacturing after necessary government approvals were granted. Its major customers include Ashok Leyland. In June 2003. Following economic reforms initiated in 1992. JK Tyre has a strong brand positioning in the Indian market with dominance in the commercial vehicle segment.600 outlets. JK Industries invested INR1. JK Tyres also uses a dealer and sub-dealer network of 3. Vice Chaeirman & Managing Director Bharat Hari Singhania. 0bn (€14.10 34. 30 September 2008) as compared to INR1. 30 September 2005).25 366.315.60 121.33 330. JK Industries reported sales of INR28.59m. Net profit increased sharply to INR665m (€9.40 164. 30 September 2007) in 2007. The recently acquired Tornel facility has added substantially to the company’s manufacturing footprint and will help JK Tyres in establishing short lead times for supplying its customers based in the Americas.65bn (€38.80 34. 30 September 2008).95 2.84 0.83 23.25m.32bn (€22.58 Profit before tax.87 27. a 35. 30 September 2008). JK industries spent INR81.004. JK Tire is the sole supplier to the Mahindra Logan and Scorpio models for their export programs Financial Overview In the financial year ended 30 September 2008.650. € m 14.48% to INR2. 30 September 2008) in 2008 from INR167.59 Operating profit.8m (€1.60m (€2. Operating profit increased by 101.79bn (€366.9m. JKI is the first and only manufacturer to introduce low rolling resistance tires in the country developed at HASETRI R&D facility.8m.71m.17 2. The company's profit before tax was INR1.14 20.16 Outlook JK Tyre’s strong association with leading OEMs has helped the company retain its dominance in its segments.91 Net Profit.90 167.34% increase over previous year's sales of INR20. Regular expansion. € m 412.18 26. JK Industries sources its tire technology from Continental AG. Year(Sep tember) 2008 2007 2006 2005 2004 Year(Sep tember) 2008 2007 2006 2005 2004 Sales.41 450.40m (€0.36% of net sales on R&D. Contracts JK Tyre is the sole supplier to the Maruti Suzuki SX4-Zxi and Swift programs.90 Net Profit.80 Profit before tax. © SupplierBusiness Ltd 2009 191 . INR m 1.33m.83m.55m.40 1. 30 September 2007) in 2007. These tires were developed at its HASTRI R&D facilities.14bn (€412.84 22.The Indian Supplier Report New Product Developments In the financial year ended 30 September 2005.60 121. INR m 665.74 2. € m 38.10 3.30 1.64m.315. 30 September 2007) in 2007 on cost cutting measures and improved sales of higher margin products.65 2.10 Operating profit. entry into high margin business and cost restructuring has ensured substantial improvement in the company’s performance. INR bn 28.560.00 167.20 23.61 2. Germany and its in-house research and development capabilities at Hari Shankar Singhania Elastomer and Tire Research Institute (HASETRI). €m 9.40 1.38 Sales.10 1.71 0. 30 September 2007).40 164.79 19. INR m 2. 0.78 395. In 2002.85 24. increasing substantially compared to INR34.560. JK Industries launched its first coloured silica based radial tires for the passenger car market. camshaft cap. exhaust manifold. 380 (2008) Outlook The growth of Hyundai as the third largest OEM in India has helped JKM in attaining a critical size of operations and the company is further expected to benefit from the small car export programs of Hyundai. JKM Dae Rim Automotive (JKM) is a 73:27 joint-venture between Dynamatic Technologies and DaeRim Enterprise. JKM's estimated sales were INR1. lever clutch operating.12. dog controls. lever selection assembly. Products Body speedometer. 602 105. case oil seal. JKM won contracts from Ford and John Deere (USA). inlet manifold. This helped the company in growing beyond its main customer Hyundai. Encouraged by the response. JKM's current domestic customers include Fiat India. Ltd (South Korea) produces ferrous and non-ferrous engine and transmission components for the global automotive industry. Hindustan Motors. Chairman Sudhir Munjal. Further. Irrungattukottai. Contracts JKM is the single source supplier for a wide variety of critical engine and transmission parts for the Hyundai Santro and Accent cars.oil pump assembly. The company has also won an export contract from Tenneco. Tata Motors and its export customers include Ford (South Africa). In 2003.12m. rocker arms. JKM Daerim has won several OEMs contracts to supply leading programs. 31 March 2008) (Year to 31. Kanchipuram Dist.08) Financial Overview In the financial year ended 31 March 2008. JKM Daerim is scouting for more export contracts and opportunities to supply through Daerim’s supply network. rocker cover assembly. Tamil Nadu JKM Daerim Automotive.The Indian Supplier Report JKM Dae Rim Automotive Engine and transmission components Address JKM Dae Rim Automotive Ltd. Sriperumbudur. lube. Managing Director Ravi Sharma. its focus on adding domestic customers has given it significant supply volumes. No other financial information was available. John Deere (USA). Clutch reverse forks. General Motors India. F-67. Established in 1997. JKM has a contract for Mitsubishi Lancer and Mahindra Scorpio models. It was established initially to supply Hyundai Motors India but has over the years. support engine. Employees c. support gear box and water pump assembly Plants Tamil Nadu Sales INR1. In 2004. a joint-venture between Dynamatic Technologies (India) and Daerim Enterprise Co. The company now actively supplies components to Tata and Mahindra and is developing new components for upcoming programs of the two manufacturers.Finance Recent Developments Corporate strategy In recent years. SIPCOT Industrial Park. support differential.4bn (€22.com Senior Officers Satyanand Munjal. The company supplies components to the TATA Indica and Sumo programs. Mahindra & Mahindra. fork shifts. added other domestic customers.12m.jkm-daerim. JKM won its first export contract from Tenneco Auto to develop and supply two types of exhaust manifolds to its manufacturing facilities in Germany and USA. Tel: +91 41 1125 6049 Fax: +91 41 1125 6050 Internet: http://www.4bn (€22. bushes. 31 March 2008). Hyundai Motor India. General Manager. case differential. © SupplierBusiness Ltd 2009 192 . This has significantly reduced its dependence on Hyundai for business. Tenneco Automotive (UK) and Volvo. matthey. This contract may lead to more lucrative ones in future as the same engine (Fiat 1. The company is a supplier to Maruti and has an overall 60% marketshare in the Indian market.03.3bn (€20. Johnson Matthey India’s Environmental Catalysts Division caters to the automotive industry. Sector 3. The company’s market is limited to domestically produced cars. Yet. The plant has a total capacity of four million catalytic converters per annum. Managing Director Products Auto catalysts. India’s largest passenger car manufacturer. Significant growth in supplying Ford India and Mahindra & Mahindra is being registered. Investments Johnson Matthey Catalysts' first unit was established in Okhla. The company meets about 80% of Maruti’s total requirements.64m. 31 March 2008).64m. The company supplies catalytic converters to the Ford Ikon model. about 20% is being exported to the North American and European aftermarkets. In 2005. New Delhi. Johnson Matthey’s biggest customer is Maruti Udyog. In 2000. the company moved production to a new production plant in Manesar. Financial Overview Johnson Matthew's estimated sales in the financial year 2008 were INR 1. leading to additional volumes. Johnson Matthey has been able to gain new business in the recent past. All product development is sourced from the parent company. to manufacture catalytic converters for heavy-duty diesel vehicles. INDIA Johnson Matthey is the market leader in catalytic converters in India. Johnson Matthey is a supplier to both four-wheelers and two-wheelers segments.08) Employees c. the company has substantial spare capacity which it has been trying to utilize. Contracts Johnson Matthey Catalysts supplies to all models of Maruti Udyog. Approximately 50% of the company’s revenues come from supplying to Maruti. IMT Manesar. The company has won a supply contract from Maruti to supply catalytic converters for Maruti's new diesel engines which will enter the market in 2006. in Gurgaon (Haryana) near Delhi. Tel: +91 124 2290234 / 546-553 Fax: +91 124 2290239 / 240 Internet: http://www. Mahindra has now stopped producing all other variants of the vehicle and the CRDi version is the only one available. most of the future business still depends on the parent company’s relations with various OEMs as global suppliers to model programmes are often carried over to new locations. 31 March 2008) (Year to 31.3-litre Multijet) may be manufactured by the Tata-Fiat alliance at their plant.The Indian Supplier Report Johnson Matthey Catalytic Converters Address Johnson Mathey India (P) Ltd Plot No 12. 90 New Product Developments Johnson Matthey Catalysts does not invest on R&D in India. In 2005. Johnson Matthey started supplying to Mahindra & Mahindra for the Scorpio CRDi model. Plants Gurgaon (Haryana) Sales INR 1.3bn (€20. Johnson Matthey announced that it is going to establish a new production line in its existing facility in Manesar.com Senior Officers Alok Khetan. near New Delhi with an annual production capacity of eight million catalytic converters for four-wheelers and two-wheelers. diesel catalysts Recent Developments Corporate strategy Enforcement of stricter emission norms has made the use of catalytic convertors mandatory making a strong business case for Johnson Matthey Catalysts’ which has witnessed substantial growth in the last four years. Gurgaon (Haryana). With the shift of the Indian norms towards Euro III. Johnson Matthey Catalysts has a plant in Manesar in Gurgaon. Out of this. Gurgaon 122050 Haryana. However. The company has been growing at a © SupplierBusiness Ltd 2009 193 . But in the commercial vehicle market the company has large growth potential where it has an opportunity to win new customers. On the hand the company will face headwind from global competitors who make entry into India.The Indian Supplier Report CAGR of about 10% over the last three years. © SupplierBusiness Ltd 2009 194 . Outlook Sales growth for Johnson Matthey is highly correlated to vehicle production. In the passenger car segment the company already has the leading market share hence its growth is linked to the market growth. Koregaon Bhima. QS 9000 and ISO 9002 certifications. Cummins. Kalyani Forge integrated its forging and machining operations and ramped up its machining capacity.kalyaniforge. To counter the pressure on its margins.73% to 4. International Business & Marketing Recent Developments Products Cold precision forgings. COO Rohini G Kalyani. 31 March 2008). VP.The Indian Supplier Report Kalyani Forge Precision forgings and forged components Address Kalyani Forge Ltd. the company started commercial production of hot forgings. Hot Forging Division. 611-614.1 Profit before tax. Further. sheet metal components. Plants Maharashtra Sales INR1. Trelleborg Automotive (UK & Germany). 602 (2008) Financial Overview In the financial year ended 31 March 2008. Tel: +91 21 3725 2335 Fax: +91 21 3725 2756 Internet: http://www. Hero Honda. Cummins India. Tata Motors. 31 March 2008). Year Gross sales.904.49m. as a niche forge shop incorporating press technology for small forgings. INR m 94. (Year to 31. GKN Driveline India. Metaldyne.com Senior Officers Dr N A Kalyani. Force Motors. an increase of 4. Kalyani Forge has divided its operations into four segments. 31 March 2008) and net profit as INR94. Its international customers are Arvin Meritor.56m.20 1. Certifications Kalyani Forge is accredited with TS16949. Gat No.24% from INR1. Kalyani Forge established a machine shop in 1995 and metal forms division in 1999. Same Deutz (Italy).285. 31 March 2007) in 2007.2 110.10m.8 229.00 Operating profit. INR m 266.34m.5 103. Chairman C Mohan. TVS Motor Company and ZF Steering Gears.9bn (€30.83bn (€31. INR m 148 168. Metal Forms Division and Precision Auto Components Division.1 162. near Pune (Maharashtra) at an investment of INR250m (€4. Kalyani Forge supplies to both automotive as well as non-automotive sectors. gears. TVS Motor and GKN Driveline India.10m. Managing Director Milind Shenolikar. Contracts Kalyani Forge is a single source supplier of specific forgings to Lombardini. Duraldur. Tata Motors. Lombardini. In 1981.9% with increase in input costs.6 158. warm precision forgings Corporate strategy In recent years. Ilgin Auto.827. Kalyani Forge's domestic customers include Ashok Leyland.7 258. Knorr-Bremse. 31 March 2007).12. Profit before tax for the period was reported as INR148m (€2. Investments In 2006.80 1. Product Engineering Division. Mahindra & Mahindra.43m. however over the last five years its margins have halved from 8. the company added a die-forging unit. Tehsil Shirur.70 1. Hero Honda Motors. spline shaft.4 102. Bajaj Auto.9bn (€30.8 209.3 Net Profit. Kalyani Forge opened a forging unit for production of die forgings and machined components at Sanaswadi.08) Employees c.480. Kalyani Forge was established in 1979. Pune 412 207 Maharashtra Kalyani Forge is a leading manufacturer of precision forgings and forged machined components such as connecting rods for two and four-wheelers. 31 March 2005). Kalyani Forge reported sales of INR1. Sata and VCST. INR m 1.2m (€1.9 2008 2007 2006 2005 © SupplierBusiness Ltd 2009 195 . Kalyani Forge has grown its sales significantly with a surge in vehicle demand in India. 10 31.34 2.82 1.75 Net Profit.70 3.03 2.65 2008 2007 2006 2005 2004 Profit before tax. © SupplierBusiness Ltd 2009 196 . Going ahead.57 22. However the rising input costs till 2008 have halved its margins.28 3.93 1.49 1.90 3. Kalyani Forge will find it difficult to achieve double digit margins as sales have been decreasing and inventories held are still high in the recessionary market.4 102. €m 2.91 Outlook By 2005. Kalyani Forge was positioned to earn a significant profit margin following extensive cost reduction measures.5 147. €m 4.80 2. €m 30.5 Year Gross sales.50 195.94 Operating profit.The Indian Supplier Report 2004 1.47 4.174. €m 1.21 4.91 1.56 27.74 21. com/company/kal yani_Lemmerz_ltd. Investments In February 2007. Village Kuruli Chakan. This has created excess capacity and the problem is further aggravated by the supply of cheaper Chinese steel wheel rims especially in the commercial vehicle segment. which subsequently turned into an equity alliance.bharatforge. Products Steel wheel rims Plants Pune (Maharashtra) Sales NA Employees c. The plant will begin with an installed capacity of 2m wheels per annum expandable to 4m units per annum as the market matures. Volkswagen and existing operations of Tata and Fiat in the Pune cluster. © SupplierBusiness Ltd 2009 197 . Presently. Hayes Lemmerz holds 85% stake in the company while the balance is held by Kalyani Group. Kalyani Lemmerz manufacturers wheel rims using the flat stock.marketing Rajendra Shah Darshan. Outlook Over the last five years. where it is located. 250 (31 March 2008) Financial Overview Kalyani Lemmerz is privately held and does not publish its financial statements. Manager. Kalyani wheels was established by the Kalyani Group as a part of its diversification strategy. Kalyani Lemmerz has expanded its presence from commercial vehicle steel wheel rims to passenger car wheel rims. The company plans to win supply orders for programs from the upcoming plants of General Motors. The company initially had a technical alliance with Lemmerz Werke. Margins in export orders are usually higher than those in the high-volume domestic supply programs. To improve its margin.410 501 India Kalyani Wheels is a leading supplier of steel wheels primarily to commercial vehicle OEMs and with a smaller focus to passenger car sector in India.asp Senior Officers Santosh Wagh. Tel: +91 2135 305 100/ 305 251/ 52/ 59 Fax: +91 2668 262427 Internet: http://www. Engineering & development activity at Kalyani Lemmerz is supported by Hayes Lemmerz’s German design center. several wheel manufacturers have announced capacity expansions to tap supply opportunities in the passenger car and commercial vehicle segments.The Indian Supplier Report Kalyani Lemmerz Steel wheel rims Address Kalyani Lemmerz Ltd. Kalyani Lemmerz’s Pune plant has an installed capacity of 2m wheel rims per annum. Tal: Khed Pune . Hayes-Lemmez announced investment at its present facility to manufacture passenger car wheels from December 2008 onwards. cold pressing and flow forming method pioneered by HayesLemmerz. Hayes Lemmerz is trying to achieve an 80:20 split between its domestic and export sales.635. The company manufactures wheel rims for commercial vehicles and utility vehicles. Gat No. Finance controller Recent Developments Corporate strategy In recent years. cars and light commercial vehicles.16m. The company has recently entered the auto components space with supplies from its two plants in the Western auto cluster. 31 December 2006). 31 December 2006) to Kinetic Engineering. D1 Block. Chairman MK Khera. Kinetic’s client base includes. 31 December 2008). Earlier the company had setup Kinetic Auto Systems as a strategic business unit to tap opportunities in the auto component space. Certification Kinetic is accredited with TS 16949 status for manufacturing systems. recreational and outdoor products. Managing Director Kinetic Engineering has traditionally been a vertically integrated two wheeler manufacturer with captive manufacturing & development capability of critical components. The company underpins it strategy on its current order book and believes it will help them quickly reach a critical mass before entering the next phase of growth. Acquisitions and divestments In December 2006.Italy. Piaggio. In number terms.4m.411 019 Tel: + 91 20 2747 4301 -5 Fax: + 91 20 2747 7227 / 2747 5843 Internet: http://www. The company has also been able supplying to recreational and off-highway product manufacturers in Europe and North America which has helped ensure better margins. Pune.2m (€13. Kinetic has a contract to supply 50% of all gearboxes on the Tata Nano. The company is leveraging its engineering & manufacturing competence to win business in engine and transmission component segments for its two plants in Pune and Ahmednagar.Slovenia and Visteon India Products AC generators. Supa Undertaking on slump sale basis to Kinetic Motor Company Limited (KMCL) for a consideration of INR535m (€9.The Indian Supplier Report Kinetic Engineering Engine & transmission components Address Kinetic Engineering Limited. recreational and outdoor applications and gearboxes for two wheelers. MV Augusta. Pune (1) Recent Developments Corporate strategy Kinetic has identified demand for engine and transmission components and is tapping unutilized capacity at its plants to cater to this group. Tata Motors. In the domestic market the company is focusing on high volume supplies to bolster its presence in the market.200 (31 March 2008) New Product Developments In 2006. Husqvarna. the company has setup a 100% growth target by 2010 with targeted revenues of INR5bn (€79. Kinetic developed engines for Carraro India and Visteon India and gearboxes for Tata Motors and Force Motors. 1. gears. GKN Rockford. Presently Kinetic is focusing on a product portfolio consisting of small engines for two wheeler. Bombardier Recreational Products – USA. Sales INR832. Chinchwad.kineticindia. Tomos. starter motors Plants Ahmednagar (1). KMCL also allotted redeemable preference shares worth INR300m (€5. Facing acute cash crunch and mounting losses in its two wheeler manufacturing business. Contracts Kinetic supplies gearboxes to Bombardier Recreational Products – USA. Force Motors. Carraro India. gear boxes. engines.19m. Bombardier. Plot No. Kinetic Engineering divested its Two Wheeler manufacturing Unit.com Senior Officers AH Firodia. shafts. © SupplierBusiness Ltd 2009 198 . 31 December 2008) Employees c. Presently Kinetic derives 20% of its revenues from exports.22m. 18/2. electronics. Kinetic Engineering completely divested its interests in two wheeler manufacturing setup in the favour of a sister concern and is now focusing solely on its auto components business. € m 0. At the same time a quick flow of orders has helped the company hold guard against adverse financial situation.10) 2008 Year 2008 Outlook Kinetic’s transformation bid from a two wheeler manufacturer to an auto component supplier is beginning to take shape.The Indian Supplier Report Financial Overview For the 15 month period ended financial year ended 31 December 2008.22 Operating profit. Kinetic Engineering registered sales worth INR832.2m (€13. INR m (258.44 Profit before tax. The company’s proven ability to supply fully assembled modules will help Kinetic quickly gain momentum in the components space. € m (4. Year Gross sales. though the turn-around is yet to be completed. INR m 27. © SupplierBusiness Ltd 2009 199 . 31 December 2008). INR m (256.4) Net Profit.5 Operating profit.4m (€4.22m. € m (4. For the financial year under review Kinetic registered a net loss of INR258.07) Net Profit. Kinetic’s financials are not comparable to previous results due to the restructuring in the operations. 31 December 2008). €m 13.10m. INR bn 832.5) Profit before tax.2 Gross sales. Marketing Head Krishna Maruti is a major supplier of interior trims and seats to Maruti Udyog. armrests and headrest. Krishna Maruti has a market share of 36% each in seats. The most crucial of them is located close to the Maruti plant in Haryana and undertakes seat manufacturing. The unit enjoys a 35% market share. moulded carpets.krishnamaruti. the company entered into a new business area of sheet metal components and has secured a strong alliance for expanding the business. Door trims. Krishna Pads Ltd.com Senior Officers Ashok Kapur. Both Maruti and Suzuki have separate stakes in the company. SKH Auto Components manufactures seat trims. manufactures a large number of inside and outside rear view mirrors for Honda Siel Cars India Ltd and Maruti Udyog Ltd. It has an installed capacity of 1200 seats per day. Honda Siel. The company claims to have a third of the market share in seats. armrests and headrest categories in the country. sheet metal components and injection mouldings. The group has been diversifying into new areas. © SupplierBusiness Ltd 2009 200 . KML now derives 70-percent of its revenues from Maruti Suzuki. 31 March 2008) Employees c. Sister concern SKH Metals has formed a joint venture with Magnetti Marelli for exhaust systems and other alliances are also being initiated. rear view mirrors. the company was mandated as the principal seat vendor by Chrysler for its Jeep Wrangler program which will lead to a 33% increase in revenues once the supplies commence in June 2009. Gurgaon (2). Chirag Enclave.1200 (31 March 2008) Recent Developments Corporate strategy Krishna Maruti has been one of the most aggressive vendors in the Maruti vendor group. fuel tanks and front suspension.. Joint Managing Director Manish Gupta. Chairman and Managing Director Sunandan Kapur. seating systems. The company has successfully added a number of nonMaruti clients to its clientele list and has bagged significant business in North America and Europe. 20% in door trims and a 12% share in roof liners in India. Manesar (2) Sales INR12bn (€189. Krishna Maruti Limited (KML) is a Maruti associate vendor set up in 1994 to cater to the special needs of Maruti.20% respectively. this includes joint ventures for chassis systems.The Indian Supplier Report Krishna Maruti Interior trims and seats Address Krishna Maruti Limited B-5.6m. adding new products to its portfolio. Omni. amounting to 15. Indian promoter Ashok Kapur holds 37. New Delhi-110 048 Tel: +91 124 2371650 Fax: +91 124 2371618 Internet: http://www. seat trims Plants Binola (2). Products Arm rest assemblies. roof headliners. manufactures headrests and armrest assemblies for all models of Maruti car. With the acquisition of Mark Auto in 2005. 25% each in mirrors and trims. Its major customers include Maruti Udyog Ltd.80% and 29. GM and Ford. The company has the following business units: Krishna Maruti Ltd. Krishna Maruti has six manufacturing facilities. To this end. headrest assemblies. Zen. Alto and Esteem and has a 59-percent share in Maruti's seats business. (KML) manufactures seats and door trims for Maruti Udyog. Krishna Groupo Antolin manufactures roof liners KML (Moulded carpets division) Krishna Maruti Ltd has the following sister concerns: SKH Metals manufactures exhaust systems and allied components. Krishna Toyo Ltd. The company makes seats for the Maruti 800.5% stake in the joint-venture. On a standalone basis. the only seat manufacturer in the world to win the award. mufflers for gasoline engines and aluminised tubes for automotive exhaust systems. Krishna Maruti announced that it had been mandated by Chrysler for supplying seats to the Jeep Wrangler program. Krishna Maruti acquired Mark Auto. Krishna Maruti acquired Mark Auto. Mark Auto also supplies to GM India. Certifications Krishna Maruti has been conferred with the Deming Prize for quality. 31 July 2008) to Chrysler annually. Apart from Maruti. Fiat India and Delphi and various Maruti associate vendors like Jay Bharat Maruti. Krishna Maruti supplies injection moulded plastic parts to Honda Motorcycles & Scooters India. Mark Auto manufactures a number of sheet metal components including fuel tanks for many Maruti vehicles. Krishna Maruti supplies seats to the Maruti Suzuki A-Star program. KML also got access to other customers like GM India. another Maruti-Suzuki family supplier. The company claims to be India's largest seat cover manufacturing company with a capacity of 200. engine mountings and is also supplying exhaust systems. suspension frames. Omni and Wagon R. The company claims that the centre is capable of conducting tests as per © SupplierBusiness Ltd 2009 201 . axle housings. Krishna Maruti supplies seats to the Maruti Suzuki SX4 program. Mark Auto had been directly managed by Maruti for the last few years and has been a supplier of critical sheet metal components to Maruti including fuel tanks.000 sets per annum. Acquisitions In 2005. The company also supplies carpets for the Alto and the Wagon R. The company also has a technical cum financial tie-up with Toyo for mirrors.The Indian Supplier Report In recent years the company has worked at backward integration to bring its suppliers closer. Contracts In July 2008. KML will ship sub-assemblies to Ohio and assemble them at a greenfield manufacturing facility at Ohio. It set up Krishna Pads Ltd in 1996 to manufactures head rest and arm rest assemblies and is the single source for Krishna Maruti. further supplies mirrors for all models in the Maruti stable and certain models of Honda Siel. Krishna Toyo Ltd. Krishna Maruti announced that it had been mandated by Chrysler for supplying seats to the Jeep Wrangler program. Joint-ventures Krishna Maruti has a technical collaboration with SNIC which is a joint venture between Suzuki and NHK for seats.0m. Investments In July 2008. Toyo holds 50% stake in Krishna Toyo. another Maruti group supplier. KML will replace Johnson Controls as the seating systems vendor to the Jeep Wrangler program. Krishna Maruti also started Krishna Trims Ltd in 1996. Krishna Maruti also manufactures door trims for the Alto. Krishna Maruti supplies seats for the ICML Rhino Rx. Krishna Maruti supplies seats to the Maruti Suzuki Zen Estilo program. Again most of the production is supplied to KML. The company has also been certified with TS 16949. Krishna Maruti owns 10% each in Krishna Pads and Krishna Trims. Caparo Maruti and Sona Steering. The company supplies critical sheet metal components and assemblies like fuel tanks. In volume terms. There is another joint venture with Suzuki Kasai for Door trims. With the acquisition. Krishna Maruti makes seats for Maruti 800. the company would be supplying to 120. Krishna Pads is also India's largest manufacturer of head rest arm rest assemblies. ISO14000 and OHSAS 18000 certifications. Under the program KML would supply seats worth INR 4bn (€63. In 2005. Wagon R and Zen Estilo. New Product developments Krishna Maruti has a dedicated R & D centre set up with an investment of INR66. Further. Alto. The tie-up for headliners is with Groupo Antolin where the Spanish giant holds 50% stake.000 units of Jeep Wrangler annually starting June 2009.2m. Krishna Maruti Group’s plan of entering new product areas is a bold challenge with an uncertain economic situation.6m. Financial Overview In the financial year ended 31 March 2008. Free Flight Impact Test Rig and Static/Dynamic Strength Test Rig. This test centre can also perform tests for non-automotive components for endurance and repeatability. Despite this.The Indian Supplier Report European Homologation (EEC/ECE/FMVSS) and Japanese Standards (JASO) on not only automotive seating systems but also on other components wherein repeatability and endurance life has to be ascertained. Krishna Maruti does not disclose detailed financials. Outlook Krishna Maruti has made significant achievements in the last three years towards achieving its aim of being a total automotive interiors solution provider. This centre is capable of not only testing as per International Standards but can also issue Test Certificates to other seat manufacturers. The set-up includes Vibration Test Rig. Being a privately-held company. a first for any Indian interiors manufacturer. 31 March 2008). Having de-risked its client base significantly. Krishna Maruti has positioned itself as a strong supplier with the Jeep Wrangler contract. © SupplierBusiness Ltd 2009 202 . sales of Krishna Maruti group totalled INR12bn (€189. The company is doing its own independent research on seats and has developed some products: 'Easy Seat' meant for the physically disabled people where the copassenger seat rotates outwards while moving forward. In June 2008.co. During the late 80s. Luxembourg. After the collaboration. South Africa.lgb.6% of total sales of 2005. Forging & Machining businesses which accounted for 25% of 2008 sales were restructured under a new company LGB Forge in 2008. LGB began its cold and hot forging operations. Lucas TVS.050 (Year to 31 March 2008) Recent Developments Corporate strategy In recent years LGB has made substantial improvements in forging and machining businesses. Vice President. South Korea. Tel: +91 422 2532325 Fax: +91 422 2532333 Internet: http://www. LGB has listed exports a principal growth driver and has plans to establish itself as a leading player for fine © SupplierBusiness Ltd 2009 203 . Mico and TVS Motors. Metal forming: Metal forming accounted for 17. Joint Managing Director LG Varadarajulu.Technical A James Chandra Mohan. Visteon. tensioners. In 1994.49bn (€86. Rane and Sona Steering. forged products. cold and warm forming segment.08) LGB's domestic OEMs and Tier-I customers include Bajaj Auto. LGB Industries and the steel division of Elgibi Automotive Services was amalgamated into LGB. The company exports about 15% of its sales to Europe and USA. USA and Vietnam. Recently. LML. Italy. LGB entered into steel strips and wire rods manufacturing in the 70s. 2. Vice President. Kalyani Brakes. Managing Director PS Balasubramanian. France. LGB entered into a technical know-how agreement with Japan based Daido Kogyo to supply drive chains and cam chains to all two-wheeler OEMs in India.in Senior Officers B Vijayakumar. The company markets its chain under the brand name "Rolon". Brakes India. LGB became the first Indian company to supply timing chains to four-wheeler OEMs in India. Hong Kong. Turkey. fine blanking products. Slovenia. Kinetic Engineering . Singapore. Sri Lanka. Poland. timing/engine mechanism chains. Combined Industrials Ltd. Director K Vasudevan. Bajaj Auto. Malaysia. Puerto Rico.The Indian Supplier Report LG Balakrishnan Automotive chains and metal formings Address LG Balakrishnan & Bros Ltd 6/16/13. Colombia. Subsequently the company ventured into rubber belts. Uruguay. Elgibi Engineering Works and Super Engineers Limited during the 70s and the 80s. UAE.Krishnarayapuram Road Ganapathy Coimbatore -641 006 LG Balakrishnan (LGB) is a leading supplier of automotive and industrial chains and metal formings in the domestic market. LGB supplies forged components to Brakes India. aluminium bus bodies and wind energy systems. The company supplies fine blanking products to Aditya Auto. Kinetic Engineering. HMSI. machined components. TVS Motors and Yamaha.Marketing Products Automotive: Automotive kits. Iran. Others: Other operations accounted for around 16% of total sales. Greece. Indonesia. Germany. New Zealand. GKN. following which the company has spun off these operations into a special vehicle to facilitate strategic initiatives including acquisitions. the company initiated timing chain manufacturing operations under an alliance with Germany based John Winklehofer. and wire drawing Plants Automotive: Tamilnadu (7) Karnataka (3) Sales INR5. Presently the company classifies its operations under three strategic business units: Transmission: Transmission contributes nearly 56% to its total sales. Hero Honda. motorcycle and moped chains. sprockets. 31 March 2008) (Year to 31. Hero Honda. LGB established a chain manufacturing facility at Vaiyampalayam (Tamil Nadu). UK. Force Motors. The company added three subsidiaries. LGB exports its products to Australia. Japan. Denso. In 1997. The company came into being in 1937 as a transport operator and bus/truck body builder. Kalyani Brakes. Vice PresidentCommercial P Prabhakaran.88m. The company has also made various acquisitions and announced investments into new plants to grow its blanking business. Mico. Employees c. Larsen & Toubro. Elgibi Engineering Works was later merged with the company. In 1966. belts.12. LGB claims a market share of 70% for drive chains supplied to OEMs and 50% for drive chains supplied to the aftermarket. In the 90s the company entered the hot. Delphi. Reynold acquired 75% stake in LGB’s chain business. Bangladesh. 31 March 2005) in setting up new facilities and capacity expansions.The Indian Supplier Report blanking and forged components akin to its leadership in chain exports.5bn (€26. The Vaiyampalayam (Tamil Nadu. engineering division. The chain plants will begin operations by end 2007. The company completed the divestment during financial year 2005. It announced investing into a new forging plant in Coimbatore (Tamil Nadu) with forging machinery imported from Korea and Japan. fine product capacity of 46m pieces per annum and chain manufacturing capacity of 2. The Annur (Tamil Nadu. In June 2004. India) based industrial chains facility has an installed capacity of 10m feet per annum. India) based drive chain plant has a production capacity of 10m feet per annum. Mysore (Karnataka. LGB decided to dispose substantially its textile. Gudalur (Tamil Nadu. Swathe Gears and Heat Treaters. India) based drive chain plant is accredited ISO/ TS 16949 & ISO 9001 status. Certification LGB’s fine products and forging division is certified ISO/ TS 16949 & ISO 9001 status. LGB’s rubber belt division and wire drawing division have also been accredited ISO 9001 status. Divestment In July 2004. Infrastructure LGB’s fine products and forging division undertakes the production of fine products. Acquisition In April 2005. The companies are engaged in hot forging operations. India) based plant is ISO/ TS 16949 and ISO 9001 certified. Further. LGB has additional government certified accreditation as an export house. LGB operates a government certified R&D facility with CAD/CAM capabilities. distribution division of MICO. LGB acquired MGM Industries. The plant has an installed capacity of 20m feet per annum. LGB’s machined component division is ISO 9001 certified. The facility has a forging capacity of 3m pieces per annum. bus body division.6m. The recent sale of LGB’s chain division to Reynold will help the business in becoming a principal source for Reynold’s global sourcing. Apten forgings Ltd a wholly owned company of LGB group was merged with LGB. India) plant has a production capacity of 20m feet per annum of drive chains. Blaupunkt. © SupplierBusiness Ltd 2009 204 . LGB’s machined component division has an installed capacity of 100 tonnes per month for the production of machined and precision components. LGB plans to establish two chain plants in Pune (Maharashtra) and Uttaranchal. The Vaiyampalayam (Tamil Nadu. motor sales and service. The Annur (Tamil Nadu. LGB announced its plan to invest INR1. The company has setup a new facility for producing cold forgings at K Palayam (Tamil Nadu). India) based industrial chains facility is ISO 9001 certified Mysore (Karnataka. Elf products and pre-cured and retreading operations. cold forged components and special chains. Subsidiary Apten Forgings has an installed capacity of 6000 tonnes per annum for the production of hot and warm forged components. India) plant is accredited ISO/TS 16949 & ISO 9001 certificates. Gudalur (Tamil Nadu. motor sports division. India) based plant is engaged in the production of timing and drive chains.5m feet per annum. Investments In March 2006. power tools division. The plant will commence operations by end 2006. 3 553. Year Net sales. The company exports hydraulic drive to Parker Hannifin. 31 March 2007). LGB houses a machine building facility for in-house construction of special purpose machines.74 Net Profit.61 2.26 Profit Before Tax. 31 March 2007).1 Net Profit.697.57m. INR m 5. INR m 180. endo gas generator and bell type annealing furnace. An inhouse steel rolling division produces cold rolled steel strips. spark erosion and Mikron CNC Boring machines.6% from previous year's figure of INR4.62 229.54 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 86. LGB maintains a tooling division equipped with CNC wire cutting.083.The Indian Supplier Report The company conducts in-house manufacturing of critical components.86 14.35m. induction hardening machine. Contracts In November 2005.12 4.43 608.49bn (€86. 31 March 2007) in 2007.755. Heat treatment facilities like sealed quench furnace.6 135. INR m 750.66 Profit Before Tax.97m.28 55.47 72.37 Net sales. © SupplierBusiness Ltd 2009 205 . 31 March 2008).498.88m.94 164.92 2. India is steadily acquiring the role of a global two wheeler hub with annual exports crossing one million units along with strong domestic growth. Operating profit was reported at INR750.13m. These trends will present LGB with significant growth opportunities. 31 March 2008) in 2008 from INR229.33 9. LGB won a supply contract worth €2m from Germanybased Robert Bosch to supply flanges for their CRDi Systems.37 409. rotary furnace.6m (€ 3.53 2.26 3.5 240. 31 March 2008) an increase of 15.81 4. pit type gas carburising furnace.27% to INR148. wires and strips with profiles.43m (€14.88 82.86m. 10. LGB reported net sales worth INR5.53 369. € m 2.73 Outlook Having divested its non-core subsidiaries LGB has restructured its remaining businesses. manufacturing and supply of chains for special applications. € m 2.97 2.74 843.6m (€2.99 Operating Profit.85 6.35 3. Net profit decreased by 35.73 4.99% higher over previous year's operating profit of INR843.92 136.983.71 200.9 221.74m (€11.39 4.13 87. The company has initiated work on an application engineering cell which oversees the designing.45 4. continuous mesh belt furnace. € m 11. Financial Overview In the financial year ended 31 March 2008.79 7. INR m 148.76bn (€ 82.57 11. € m Operating Profit. commercial vehicles. tractors. electronic relays. twowheelers and off-highway vehicles. In the domestic market the company is expanding its product offerings. It operates three plants in the country and supplies to all major OEMs. Lucas TVS is expanding its footprint in Iran and China. Sr Vice President. Punjab Tractors. General Motors India. L&T Tractors. Operations Products Conventional bulbs. halogen bulbs. horns.com Senior Officers TK Balaji. Prestolite Electricals and UK & USA aftermarket. Luca Electrical (UK). To this end. The company expects competition from players based in the ASEAN region with the gradual removal of import barriers within the next decade and to this end is aiming at becoming the world's lowest cost producer of electrical parts.lucas-tvs. The company has 2. Hyundai Motors (India). Cummins India. HMT. 2811 0074 Fax: +91 44 2811 5624 Internet: http://www. 2nd Floor. Ltd. Force Motors. Helwan Diesel Engine Company. Hindustan Motors. (UK) and T V Sundaram Lyenger & Sons (TVS) (India) for the manufacture of automotive electrical systems. Ford India. Tata Motors. (Japan) to manufacture electronic ignition systems for two-wheelers and portable power generators. Chennai 600 004 India Lucas-TVS is a joint-venture between Lucas PLC and the TVS group. Mumbai. © SupplierBusiness Ltd 2009 206 . Maruti Udyog. CEO and Managing Director A G S Singh. The company is a leading manufacturer of auto electricals in India. Eicher Motors. 82. Escorts. The company has an inhouse engineering centre and it uses cellular manufacturing systems for flexibility in changing production between products. starter motors. Mylapore. Lucas-TVS has five divisions: Auto Electricals: manufactures auto electrical products including starters and horns. Ruston & Hornsby. Marketing N Ravichandran. jeeps. India Nippon Electricals Ltd (INEL) was established in 1985 as a jointventure between Lucas Indian Service and Kokusan Denki Co. Tata Cummins. Its plant is situated 40 kilometres away from Chennai in Tamil Nadu. This is highlighted by the recent acquisition which brought additional electrical components to the company’s offerings.000 outlets spanning the entire length and breadth of the country. The company's export customers include Delco Remy. Lucas-TVS caters to all segments of the Automotive industry including passenger cars. ignition coils. The company has four regional offices one each in Delhi. Greaves Tractors. Chennai and Kolkata and 22 branch offices covering almost all the states in the country. is engaged in sales and service of auto electricals and fuel-injection equipments manufactured by Lucas-TVS. 31 March 2008) Employees 1. rear combination lamps and various other combination lamps for four-and two-wheeler applications. two-wheeler batteries Plants Haryana . Mahindra & Mahindra. Kirloskar Oil Engines. Lucas India Service (LIS). India Japan Lighting Ltd (IJL) was founded in December 1996 as a 50:50 joint-venture between Lucas-TVS and Koito Manufacturing Company Ltd (Japan). Lucas TVS was established in 1961 as a joint-venture between Lucas Industries Plc. head lamps. Radhakrishnan Salai. Simpsons. formed in 1930. Tamil Nadu Sales INR 10. to manufacture a range of headlamps. No. Fuel Injection Equipment (FIE) -was set up in 1990 with a factory at Mannur (Tamil Nadu) in collaboration with the Lucas Group for the manufacture of diesel fuel-injection equipment. The company's domestic customers include Ashok Leyland.35bn (€160m.800 (March 2008) Recent Developments Corporate strategy Lucas TVS’s leadership position is now being challenged by new entrants. Dr. Tel: +91 44 2811 0063. Ind Auto.The Indian Supplier Report Lucas TVS Automotive electricals Address Lucas-TVS Limited AALIM Centre. Another strategy that Lucas TVS is adapting to improve its prospects is entering new markets to counter balance the perceived threat from other Asian players. Swaraj Mazda. Bharat Earth Movers. tail lamps. Gujarat Tractors. President. Pondicherry. solenoid switches. Tractors & Farm Equipments. Acquisitions In August 2008. India Japan Lighting division is a joint-venture between Lucas-TVS and Koito Manufacturing Company Ltd.8kw to 9kw. Financial Overview In the financial year ended 31 March 2008 Lucas-TVS recorded sales worth INR 10. For the manufacture of various lamps. The system is expected to be available in a synchronized form with the start-stop system which was launched by the company in 2006. Certifications In 2007. The company is also developing internal fan alternators of very low noise and high efficiency. Indrad manufactures auto electricals besides other components under technology agreements which have been retained by Sical through Indrad. (Japan) for electronic fuel-ignition systems.35bn (€160m. Lucas TVS has expanded its production base to Iran where it now operates a manufacturing facility. In 2004. New Product Developments Lucas-TVS is currently developing gear reduction transfer motors with a range from 0. Lucas-TVS was awarded the Deming Application Prize for achieving global quality standards in auto electrical parts. Investments Lucas-TVS invested INR60m (€1.9m. Lucas-TVS is developing a side mounted integrated starter-alternator that would help cut down weight and eliminate the ring gear. Lucas-TVS announced setting up of a plant in Iran in a joint-venture with FG Industries (Iran) for the manufacture of electrical equipment. especially at a time when a host of OEMs are planning their entry in the Indian market. the company supplies gear reduction transfer motors of a range up to 2kw. 31 March 2005) to establish a reliability assessment laboratory. The company plans to introduce the new range for passenger cars.The Indian Supplier Report Lucas TVS foresees increased local design and development of vehicles and is bracing itself for the change by strengthening its design and development capabilities. 31 March 2005) in a new facility at Pune (Maharashtra). Lucas TVS was awarded the JIT Grand Prix from Japan’s JIT Management Laboratory Company for the second time. © SupplierBusiness Ltd 2009 207 . 31 March 2008). The company is working towards expanding its internal fan alternators range to 150amp from the present 120amp. Outlook The entry of a global electrical component supplier in India will increase competition for Lucas-TVS. commercial vehicles and heavy trucks in 2008. Lucas TVS bought Indrad Auto’s assets from Sical Logistics near Chennai for a consideration of INR146. Currently. The company announced an investment of INR400m (€7.08m. China. Ltd. Lucas-TVS is a privately held company of the TVS Group.06m. India Nippon Electricals Ltd is a joint-venture between Lucas Indian Service and Kokusan Denki Co. Lucas-TVS plans to expand its business by acquiring plants overseas wherever possible and along with setting up greenfield units. Joint-ventures In 2005. The company has also increased its sales activities in Malaysia. Thailand and West Asia. New Delhi. Executive Director Naval Khana.7 m. India) for supplies to Hero Honda. General Motors India.08) Employees Lumax Industries : c.03. Lumax began as a trading company in 1945 but today is focused on production of automotive lighting systems. sundry lamps. Recently. Maruti Suzuki. Kinetic Motor. Maharashtra (3). Plants Haryana (2). 1. Joint-ventures Lumax has a technical arrangement and equity participation with Stanley Electric (Japan). Phase-I. Lumax announced two new facilities at Pant Nagar (Uttaranchal. Over the supply period of five years. 31 March 2008) (Year to 31.110064. India) for supplies to Bajaj and Tata Motors. Ford India. mirror and filer production businesses to focus on its core business. 31 March 2007) by 2010. Hindustan Motor. Indian promoters hold 35% equity in Lumax Industries. Tamil Nadu. Sales Lumax Industries : INR5.250 (2007) © SupplierBusiness Ltd 2009 208 . the company hived off its plastic moulding. Mayapuri Industrial Area. Lumax shipped 2. Lumax shares a joint-venture with Samlip (Korea) under SL Lumax with a facility in Chennai (Tamil Nadu). The company began exports in 1995 with its contract of an interior light for a GM Buick model. Investments In 2007. Lumax is considering inorganic options for establishing a footprint in Europe. The company is targeting sales worth INR10bn (€172. Group Finance Head Products Auxiliary lamps. Tel: +91 11 28111777 Fax: +91 11 28113631 Internet: http:// www. Chairman & Managing Director Deepak Jain. Lumax announced a new plant at Singur for supplies to Tata Motors. Automotive Lighting (Germany) for product specific assistance. This is likely to be shifted with Tata Nano’s plant to Gujarat. Maruti Udyog is Lumax's largest customer. Hyundai Motor India sources its requirements from the facility. Bajaj Auto. Tata Motors. Lumax announced a new facility at Haridwar (Uttaranchal. India). The company expects to benefit from lower transportation charges and increased export potential from the facility. Lumax operates through seven plants and supplies all major vehicle manufacturers in the country. Executive Director Anmol Jain. In 1998.5m units to GM. particularly off-highway supplies. The company is now integrating itself with Stanley’s global supply network. tail lamps Recent Developments Corporate Strategy Lumax has recently witnessed a hike in equity participation by Stanley Electric. Mahindra & Mahindra. Japan based Stanley Electric holds another 35%. Also in 2007. India Lumax is amongst India's leading automotive lighting systems company with nearly 60% market share. Lumax customers include Ashok Leyland.69m. Hero Honda. Hyundai Motor India. headlamps. especially eyeing companies with inherent strength in technology.500 sets per day for four-wheelers and 2.The Indian Supplier Report Lumax Lighting systems Address Lumax Industries Limited B-86. Uttaranchal (3). Lumax also has technical alliances with Valeo. In 2005. Swaraj Mazda. The capacity decongested by the move at North Indian facilities is being used to cater to rising orders from existing customers.com Senior Officers DK Jain. Also in 2007. Toyota Kirloskar and Yamaha Motors. Honda Motorcycles and Scooters.lumaxindustries. HondaSiel.000 sets per day for two wheelers. Lumax started a facility in Gurgaon (Haryana) with a capacity of 2.08bn (€80. Lumax plans to take its exports up from 5% presently to 10% of sales by 2010. Hence. Lumax commissioned a new plant in Pune (Maharashtra. the company is planning plants in the vicinity of ports and is negotiating for more business from clients in North America and Europe. 46 76.353.84m.48 163.48 6.84 2.73 52. Financial Overview In the financial year ended 31 March 2008.72 Outlook Lumax is looking at more export business and eyeing an overseas acquisition to strengthen its technology.10m (€4.69 92.The Indian Supplier Report Contracts Lumax supplies headlamps and tail lamps for the Tata Indica and the Indigo models. Equipment calibration facility and profile projector. € m 80.46m.03 357.63% to INR141. SL Lumax supplies to GM India for the Tavera program.83 Gross sales.29 Profit before tax.69m. 31 March 2008). the domestic market which will earn it steady sales. 31 March 2007) in 2007.73 Profit before tax. 31 March 2007) in 2007.90 2. Net profit for Lumax industries also decreased substantially in 2007 decreasing 22. INR m 201.10 138. € m 3.04 368.47m (€2.16 1.08bn (€80.02 Net Profit. Profit before tax for the financial year 2008 was recorded as INR201.081.25m. decreasing by 27.27 71.68 2.13 Operating profit. €m 2. Its technology partner Stanley gives it long term strength in new products as well as a relationship with its global customers such as Toyota and Suzuki. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales. © SupplierBusiness Ltd 2009 209 .946. The company has been accredited with ISO 9002 and QS 9000 status.82 491. Die-spotting Automatic bead laying Ultrasonic welding Manufacturing facilities for polycarbonated lenses with silicon hard coating.25 3. INR m 141.16m.308.64 2.85 6.120.33 5.05 5.86 Net Profit.67 108. While exports is its major trigger for growth.88 Operating profit.9% compared to INR280.09% compared to INR5. Lumax supplies headlamps and tail lamps for the Honda Accord model.84 4.27 1.95 280.16 43. a decrease of 5. The sluggish performance was largely attributed to lower sales to two wheeler OEMs and slower than anticipated growth in passenger car sales.72 1.95m (€3.35bn (€92. 31 March 2008) compared to INR182. INR m 5.74 306.84 92. Lumax Industries recorded sales of INR5.21 4.03 8. € m 7.47 182. The company also has a tool design and manufacturing centre with CNC machines. Infrastructure Injection moulding BMC moulding UV Curing Metalizing Robotic painting Robotic Plastic Lens Hard Coating Robotic Adhesive Application Additionally the company has CAD/CAM facilities for in-house design and development requirements. 31 March 2007) the previous year.84m (€3. INR m 442. SL Lumax is the preferred supplier to Hyundai Santro Xing program.58 2.21m.99 91. Stanley’s increased equity participation in the company has increased the company’s ability to service supply programs through Stanley’s global network. Certifications The Gurgaon based plant operated by Lumax has been accredited with ISO 14001 and TS 16949 status. 31 March 2008). Godrej. Kirloskar Oil Engines. Recently.94m (€ 15. Hero Honda. 31 March 2005) which includes an expansion for the rear view mirror Sales INR 1000. two-wheelers and three-wheelers with an installed capacity of 0. Joint-ventures In 2005. Kinetic Group. Executive Director VK Talwar.5% of its sales from the filters business. Also in 2005. The shift from foam filters to paper filters helped the company in establishing a lead market for its products with various supply programs. 31 March 2008) (Year to 31. Escorts.7% from rear view mirrors business and 36% from its plastic-moulded auto components business. In the financial year 2005. filters and plastic parts under Lumax Automotive Systems. The company is a leading supplier of air filters and automotive rear view mirrors.under Lumax Industries and structured the mirrors. In 2003. Greaves. 705 (Year to 31. Lumax Industries demerged its divisions to focus on its core sector Lighting . air filters. Mitsuba. oil filters. Eicher.110 064 India Lumax Automotive Systems is the de-merged entity of Lumax Industries. Piaggio.8m. L&T John Deere. Maharashtra (3) Recent Developments Corporate strategy Lumax Automotive Systems is trying to pool in strategic partners to address various supply opportunities in India. plastic components are still independent of a strategic alliance. Indian Railways. Honda SEIL. Maruti Udyog. Lumax Automotive Systems inked a deal with Magna Donnelley in a 74:26 joint-venture. Of the three business segments in which the company operates.03. Bajaj Auto. Reva Electric Car Co.lumaxauto. Scooters India. commercial vehicles. 5103 1267 Fax: + 91 11 2811 6455 Internet: http://www. Investments Lumax Automotive Systems has planned an investment worth INR 160m (€ 2. Tata Motors and Tatra Trucks.com Senior Officers UK Jain. Krishna Maruti. The company has received siginficantly large orders for supplies from two wheeler manufacturers and is expecting more orders from large players like Maruti Udyog. Chairman & Managing Director Nitin Jain. HMT. Lumax Auto has been targeting a 80:20 split in revenue inflows between domestic sales and exports by 2010. International Tractors. Simpson & Co. Fiat.08) Employees c.83m. Claas India. New Holland. Royal Enfield. GM. rear view mirrors. CEO Products Automotive mirrors. Hyundai Motors. The company has hinted that it is looking at expanding the scale of its plastics business trough a strategic alliance. Mayapuri Industrial Area New Delhi. Lumax signed a technical agreement with Toyo-Roki Manufacturing Company for its filter production operations. the company accounted for 37. Ford.5m sets per annum.. 21. Tel: + 91 11 2811 1777.The Indian Supplier Report Lumax Automotive Systems Oil/ Air filters and cleaners. Lumax Automotive Systems currently operates eight plants. the company formed a joint-venture with Magna-Donnelly that has helped in winning a major share of mirrors contracts in the premium car segment. The deal encompasses two mirror manufacturing facilities operated by Lumax. Denso. Lumax Automotive Systems' customers include Ashok Leyland. for the production of rear view mirrors for passenger cars. Hindustan Motors. plastic moulded auto components Address Lumax Automotive Systems Ltd B-86. Force Motors.2008) © SupplierBusiness Ltd 2009 210 . L&T Case. plastic components Plants India: Haryana (6). Mahindra & Mahindra. Swaraj Mazda.03. six in Haryana and two in Maharashtra. Automotive Coaches and Components. .51 40.85% to reach a figure of INR37.59 0.81 16. Net Profit for the fiscal 2008 was at INR21. Profit Before Tax decreased by 11. Contracts Lumax is the sole supplier of filter systems to Suzuki and Honda in India.000 units per month. however growth has been slower than expected largely due to weakened two wheeler demand in 2007. Year 2008 2007 2006 2005 Year 2008 2007 2006 2005 Net sales. Lumax Magna Donnelly Automotive Mirrors supplies rear view mirrors for the Maruti Suzuki Swift.19 815.93 Net sales.08m (€16.The Indian Supplier Report business.34 0. Lumax is the sole supplier of filter systems to the Maruti 800 program.55 0. INR m 1000. Certification Lumax Automotive Systems has been accredited with ISO/ TS 16949. € m 1. €m 15.08 Operating Profit. €m 0.88 1. INR m 113. The company has also been listed to supply mirrors for the Maruti Suzuki Swift Dzire program. The company supplies plastic moulded parts to GM India.75m. Lumax Automotive Systems started expanding its air-filter capacity to meet the spurt in demand. The expansion is scheduled for completion in 2008. In 2004-05. © SupplierBusiness Ltd 2009 211 .82 1. INR m 21.44 Operating Profit. Lumax also supplies filter systems for all passenger car.49 Outlook Lumax Automotive Systems strategy of tapping international alliances has helped the company in making a headstart.75 16. Financial Overview During the financial year ended 31 March 2008. Lumax Automotive Systems received an order from Honda Motorcycle & Scooters India for supply of entire air-filter units with volumes of nearly 30. In 2005.95 14.73m (€0.73 25.44 0.85 Net Profit.59m.4 970.47 42.28 108.12%.94m (€15. Lumax Automotive Systems generated sales worth INR1000. Lumax supplies mirrors for the Mahindra & Mahindra Bolero. QS: 9000 and ISO: 9000.84 28. 31 March 2008) compared to sales worth INR970.8m. 31 March 2008).76 0.73 0. € m 0. INR m 37.34.79 1. The company also supplies mirrors for the tractors produced by the company. Also in 2004-05.000 units a month. The company supplies side view mirrors for the Tata Indica program.47m (€0.74 27.47 Profit Before Tax.73 Profit Before Tax. The mirror is presently being imported as CKD and is expected to go be localized by 2007. 31 March 2007) in 2007. 31 March 2008). a growth of 3.74 83.31 29.08 910. the company received an order from Hero Honda for paper element of air filters with volumes of 80.87 97.51 Net Profit. LCV and HCV models in the Tata stable. 08m (€14.com Senior Officers Sanjiv Jindal.5m.The Indian Supplier Report Machino Plastics Bumpers and dashboards Address Machino Plastics Limited. Managing Director MD Jindal. 31 March 2008) down 35.Gurgaon Road. radiator grills. Machino also has interests in other businesses such as car dealerships through associate companies. another vendor meets 50% of the bumper requirements. 31 March 2007) in 2007 to INR31. Machino Plastics also supplies injection-moulded plastics to some other Maruti suppliers like Sanden Vikas. Italy.95m. though relatively small in value. 31 March 2008) (Year to 31.01m (€0. Machino Plastics invested in a new moulding machine of 3150 tons for commencing supplies to the Maruti Swift at a capital expenditure of INR70m. In the commercial vehicle market. 31 March 2008) in 2008. 96% of Machino Plastics’ revenues are derived from its automotive business. The company was later known as Machino Montell and was then renamed Machino Basell.02% compared to previous year’s figures of INR828. The company is a supplier to air conditioning systems manufacturer Sanden Vikas.36m (€0. Chairman Rajiv Batra. Machino Plastics’ automotive business comes solely from Maruti Udyog. The Jindal family and associates hold 44. 31 March 2007).30m. © SupplierBusiness Ltd 2009 212 . 234 6 094.87m.73% from previous year’s figure of INR75. Delhi .01m(€13. Business development N Bala Subramanium. While. In case of the Maruti 800 model. which accounts for 95% of its revenues.122015. Operations & marketing SK Aggarwal. by MD Jindal and Maruti Udyog to cater to plastics requirements of Maruti Udyog. Profit before tax for the fiscal 2008 stood at INR48.35% each in Machino Plastics. Finance Products Automotive: Bumpers. Machino Plastics has been manufacturing plastics for the white goods sector. Machino supplies plastic components to Eicher Motors for their HCV and high-end trucks.03. Machino Polymers was setup by the Machino group. 234 0806. The company is partly owned by Maruti.01m(€13.49m(€1. 31 March 2008) a growth of 6. The company is held equally by the Machino and Basell. Later an alliance was formed with Hinmot. Joint-ventures In 1995. Machino Plastics can rightly be called as an associate vendor to Maruti Udyog.9% from INR55.87m. Haryana . the company’s core business still revolves around Maruti. Tel: +91 124 234 1218. Contracts The company supplies plastic bumpers for all Maruti models.09% stake in Machino while Maruti Udyog and Suzuki Motor Corporation hold 15.52m (€0. The company’s sole manufacturing facility is situated in the Maruti Joint Venture Complex in Gurgaon.08) Employees c. India Machino Plastics is the largest supplier of bumper and dashboards to Maruti Udyog. fenders. 3. 31 March 2007). Net profit declined 42. The company also sees some work coming from Eicher Motors. The company has also done some amount of work for Coca-Cola India. 80 (2008) Financial Overview Machino Plastics posted net sales for the year ended 31 March 2008 at INR878. Plants Gurgaon (1) Sales INR 878. Some of Machino's own products include storage pallets and boxes for industrial applications.77m. Maruti JV Complex. Setup in 1987.30m. instrument panels and console assemblies Recent Developments Corporate strategy The commissioning of Maruti’s Manesar facility has improved Machino’s prospects of business with the OEM.machino. Investments In 2001. Machino Basell is a joint venture polypropylene granule supplier. Machino Plastics also supplies instrument panels for all Maruti models. 234 7601 Fax: +91 124 234 0692 Internet: http://www. 49 2.92 55.87 14. Some of the margin pressures are due to Machino's small scale and internal inefficiencies.01 155.62 2008 2007 2006 2005 2004 Outlook The sole dependence of the company on Maruti trims its profit margins and restricts the scope for. EUR m 0.52 0. EUR m 0.30 13.34 686.77 1.30 0.The Indian Supplier Report Year Net sales. EUR m 2. INR m 31.15 11.81 1.50 632.65 3.12 33.38 12.52 75.81 Operating profit. INR m 167.33 Operating profit.56 0.23 2.01 828.88 153.90 2.95 187. Machino has managed to keep its sales intact due to single source agreements for various Maruti models but Maruti's plan to phaseoff some of its models has restricted the company’s top-line growth.40 Net Profit. INR m 878.49 30. INR m 48.01 20.03 Net Profit.30 Net sales.3 45.95 0.27 Profit before tax. EUR m 13.35 29.38 0.50 0. © SupplierBusiness Ltd 2009 213 .08 718.84 140.36 55.86 2008 2007 2006 2005 2004 Year Profit before tax. The company is a privately held concern with major equity participation by the Parthasarthy family along with ICICI. 31 March 2008) over the next 4 years. The company has since witnessed an increase in product demand in the domestic market. Madras Engineering supplies slack adjusters to Ashok Leyland. Madras Engineering is exploring option of supplying associated braking system components as a part of its growth strategy. UK.000 units a month.34m. Marketing Products Automatic slack adjusters.10m. Madras Engineering exports slack adjusters to ArvinMeritor and Scania. overseas marketing and sale is handled by John Bruce. Following a specific demand by its customer.000 slack adjusters a month dedicated exclusively for domestic supplies and 90. 31 October 2007). MEI has an installed capacity of 160. Madras Engineering Industries commissioned operations at a dedicated Export Oriented Unit for slack adjusters at Chennai at a capital cost of INR 120m (€2.madrasengineering. The company manufactures 90. It hopes to establish a strong export business for automatic slack adjusters. 31 March 2008) and expects to scale up the revenues to INR 5bn (€79. self setting automatic slack adjuster. Plants Chennai (3) Sales INR 2. India Madras Engineering Industries is a leading supplier of automatic and manual slack adjusters. 420 (2008) © SupplierBusiness Ltd 2009 214 . Tel: + 91 44 2625 8433 Fax: + 91 44 2625 0178 Internet: http://www.0m. The company runs a export oriented unit in the Mahindra World City Special Economic Zone. Asian Motors. General Manager. Dy General Manager. Madras Engineering operates three manufacturing facilities located in the Chennai auto cluster. Director Sriram Sivaram.9m. Marketing Nilanjan Chakraborty.3m (€36. manual slack adjusters. Chairman & Managing Director Radha Parthasarthy. While domestic marketing is done by itself.000 slack adjusters a month for the domestic market. Chennai – 600 058 Tamil Nadu. Swaraj Mazda and Tata Motors on a JIT basis. 31 March 2007) for expansion of production facilities for automatic slack adjusters. Contracts MEI is the sole supplier of slack adjusters to Ashok Leyland. Sundaram Fasteners and John Bruce. President K Sundararajan. In India Madras Engineering has a 70% market share for slack adjusters. In October 2006. 31 March 2008) Employees c.com Senior Officers EK Parthasarthy. MEI supplies slack adjusters to ArvinMeritor UK through John Bruce. UK which is also an equity partner in the company. Investments In October 2006. the company started machining operations for slack adjusters and later commissioned full scale production operations. the use of automatic slack adjusters was made mandatory on all commercial vehicles.3bn (€36. In 2006.000 slack adjusters for exports. Industrial Estate Ambattur.The Indian Supplier Report Madras Engineering Slack adjusters Address Madras Engineering Industries C-6. Madras Engineering Industries invested INR 400m (€7. The company generated revenues of INR 2. Madras Engineering was established in 1966 as automotive ancillary. slack adjuster components Recent Developments Corporate strategy Madras Engineering has witnessed robust growth in sales over the past five years on account of high demand for commercial vehicles and the increasing sales of higher tonnage. It targets exports of INR 1bn worth in 3 years. The company aims to cater to 50% of the estimated global demand for slack adjusters which is around 120.Sundaram Clayton. multi-axle vehicles in India. MEI supplies 75% of slack adjuster requirement of Tata Motors.34m. MEI is the sole supplier of slack adjusters to Asian Motors. Financial Overview In the financial year 2008. It generated 72% of its revenues from exports during the financial year 2008. Madras Engineering is a privately owned and does not publish financial statements.The Indian Supplier Report MEI is the sole supplier of slack adjusters to Swaraj Mazda. 31 March 2007). The company is poised to benefit from the government mandated use of automatic slack adjusters in commercial vehicles in India.0m. © SupplierBusiness Ltd 2009 215 .34m. Outlook Madras Engineering has emerged as a strong supplier of slack adjusters through its robust supply network in India and marketing agreements in Europe. 31 March 2008) growing 130% year on year compared to previous year’s sales of INR 1bn (€20.3bn (€36. Certification Madras Engineering has been accredited with ISO 9000-2000 for its Maraimalainagar unit and QS 9000 for its Ambattur unit. Madras Engineering generated sales worth INR 2. New Product Developments Madras Engineering holds 3 patents for self setting auto slack adjusters. Improvement in revenue was attributed to increase in sales from a greenfield manufacturing unit near Chennai. Pune. Avia. Sonalika.000 tonnes per annum. The company specializes in production of sheet moulding with a capacity of 10. 31 March 2008) Recent Developments Corporate strategy Unlike Europe where composites form a substantial part of a car body. Electric vehicles which have been gaining ground in the Indian markets are also a prime target for composites. one each at Pune and Raigad (Maharashtra). Pimpri. The company is also keen on the commercial vehicle segment which has an inherent requirement of composites in NVH applications. Mahindra Composites was promoted as. Sr GM . The company is also preparing to enter a third segment to capitalise on the increasing use of composites in the sub-continent. The company is associating itself with forward model programs of various manufacturers at the design stage to capitalise the full potential of composites as an enhanced design proposition.siroplast. At present the company derives 80% of its sales from nonautomotive businesses. DGM – Finance Nachiket Thakur. DGM – Product Design & Development Products Dough moulding compound. In the automotive space Mahindra Composites is leveraging its relations with sister concern Mahindra & Mahindra to make a head start with its strategy to grow rapidly in the automotive arena. Mahindra’s component division. 130 (31 March 2008) © SupplierBusiness Ltd 2009 216 .000 tonnes per annum and dough moulding compounds with a capacity of 4. Mahindra Composites automotive clientele includes. CEO Dr M K D Choudhury. the subcontinent continues to rely on sheet metal for automotive body parts. With two plants in the western automotive cluster. Mahindra Composites divides its businesses into electrical and automotive segments. Mahindra Composites is a dominant major in the electrical composites market and an emerging major in the small yet rapidly developing automotive composites market in India. Raigad (1) Sales INR324. NVH covers with in situ foam moulding. Mahindra Composites has two manufacturing facilities. radiator grill. Mahindra Composites expects the use of composites in the Indian automotive industry to increase rapidly. Tel: + 91 20 2742 5265 / 6 Fax: + 91 20 2742 5272 Internet: http://www.411018 Maharashtra.Works Ravi L Panke. since weight reduction is an Employees c. Mahindra & Mahindra – Farm Division. defence and construction industries.17m (€5. Marketing Neeta A Bannur. Increase in steel prices has led to an increased interest in composites which were earlier considered expensive. Siroplast by the Mahindra group and State Industrial Corporation of Maharashtra (SICOM) in 1982 to cater to demand for composites in automotive and consumer durable sectors. GM. The company has developed expertise in handling resin transfer moulding and hand lay-up reinforced plastics. Mahindra & Mahindra – Automobile Division. Mahindra Composites is targeting a 60:40 revenue share mix between its non-automotive and automotive business by 2010 with an estimated annualized growth rate of 40% in the electrical segment. sheet moulding compound Plants Pune (1). Siroplast was renamed as Mahindra Composites and brought under the Systech administration. It also caters to medical.com Senior Officers Ajit Lele. Nehru Nagar Road.The Indian Supplier Report Mahindra Composites Composites Address Mahindra Composites Limited 145. The company is eyeing targets for inorganic growth to promptly add capacity and gain client base. despite their overall lower life cycle costs. With the inception of Systech as an independent division at Mahindra. India Mahindra Composites is a part of the Systech Group. Subsequently SICOM offloaded its interest in the company with Mahindra as the sole promoter of the company. Ashok Leyland. The company drew technical expertise from Menzolit GmbH. Germany. Bajaj Auto. Technical advisor Nandkishore D Agwan. Swaraj Mazda and Tata Motors.15m. At the same time. Operating profit for the 2008 financial year came in at INR29.04m.81 3.07 0.15 4. €m 5.26 0. Mahindra Compsites developed tooling and components for Avia.38 198.50 0.04 0. 31 March 2008).15m. Austria. up 23.26 0.84 14.9% compared to INR261.41 Operating profit.17 261.27 0. In the same year. €m 0. Financial Overview Mahindra Composite’s 2008 sales amounted to INR324. To this end.04 Net Profit. Mahindra Composites developed products for ITEC.18 8. Net Profit came to INR11.18m. INR m 29. Contracts Mahindra Composites supplies side fenders for the Mahindra Arjun tractor. Mahindra Composites had developed NVH cover with in situ foam moulding for the Mahindra Scorpio program. INR m 15.68 3. increased focus on NVH by OEMs in India will help the company grow rapidly.3% compared to INR2. € m 0. an increase of 413.41 0. 31 March 2008).52 3.6 Profit before tax. Mahindra Composites has already won the mandate of some commercial vehicle manufacturers.14 23. USA. Mahindra Composites developed a front wheel cover for a three wheeler with class A type surface finish in a 2 month period.78 15.18 0.19 2.68 169. Year Net sales. The company also supplies radiator grill for the Mahindra Bolero.18m (€0. INR m 11.42 14. © SupplierBusiness Ltd 2009 217 . € m 0. The company has already been able to enter key projects at design stage for aesthetic body panels which offer immense growth opportunity. While the company still draws substantial amount of revenue from nonautomotive business the scenario is likely to change with an increased thrust on the auto sector. 31 March 2007) in 2007.34 2008 2007 2006 2005 2004 Outlook Mahindra Composite’s automotive growth strategy is beginning to take shape with increased acceptability of composite materials in the Indian automotive industry.16 0. New Product Developments Mahindra Composites has developed in-house competence for developing materials. In 2007. Mahindra Composites developed engine hood for Ashok Leyland.52 3.47m. INR m 324.41 0.71% increase in gross earnings.62m (€4.42m (€0.07 18. These improvements were attributed to increase in automotive and non-automotive sales and higher value added sales.The Indian Supplier Report essential metric. 31 March 2008) representing a 97.52m. Infrastructure Hydraulic hot compression moulding presses (100 to 500 tonnes) – 10 nos.62 204.25 0.17m (€5. In the same year.51 Net Profit.16 Operating profit.44 30.44 27.19m (€0.57 Profit before tax. In 2006.93 28. 31 March 2007) posted in 2007.47 0. This is expected to happen along with a double digit growth in the nonautomotive business.01 2008 2007 2006 2005 2004 Year Net sales. In 2002. tools and designs.88 21. TAFE. sheet metal components. ceramic magnets and ferrite cores Address Mahindra Hinoday Industries Ltd. India Nippon Electrical. Dana. Visteon India and ZF Steering Gears. Germany. LML. Jaya Hind Industries. the company is focussing on the commercial vehicle segment to extend its casting business. Rane Group. Mahindra Hinoday is aggressively increasing its exports to bring it in line with Mahindra Systech’s plan of ensuring that every group company derives 40% of its sales from exports. Mahindra Hinoday was certified with TS certifications for its casting © SupplierBusiness Ltd 2009 218 . In the financial year 2007-08.000 magnets monthly to Visteon's export-oriented unit in Chennai (Tamil Nadu) for use in starter motors for passenger cars. Ferrite Core division: manufactures ferrites for automotive and electronics industry applications. France.12. Tel: + 91 20 2712 0811 Fax: + 91 20 2712 0389 Internet: http://www. Japan. The company began with import substitution of ferrites in early nineties and diversified its business into automotive castings by 2000. the company was renamed to DGP Hinoday and finally to Mahindra Hinoday after the promoter group sold their holdings to Mahindra in November 2006. the company achieved 27% of its total sales from exports. Mahindra Hinoday supplies castings to Mahindra & Mahindra. DGP Industries acquired the company and in 1985 formed a joint-venture with Japan based Hitachi Metals. The company was established as in 1963 as Morris Electronics Ltd. ceramic magnets and ferrite cores that are used in automobiles and consumer electronic industries. Denso India. 31 March 2008) (Year to 31. In 1996. Hyundai Motors India. Currently. President & Managing Director Products Cold precision forgings. 800 (31 March 2008) Corporate strategy After the acquisition of a majority stake by Mahindra. DGP Hinoday has three business divisions: Ceramic Magnet division: manufactures ceramic magnets for the automotive and electronic industries. South-East Asia. warm precision forgings Plants Maharashtra (2) Sales INR2. Thailand and USA. Spain. In 1980. Brazil. gears. Contracts In June 2005.hinoday. Mahindra Hinoday bagged a contract from Denso to supply ceramic magnets used in motors for cars and magnetos for two-wheelers in India and Thailand. The company generates 80% of total sales from the automotive industry.08) Employees Recent Developments c. Mahindra Hinoday is a leading manufacturer of automotive castings. DGP Hinoday exports its products to Australia. Bhosari Industrial Area. Bosch chassis Systems India. Castings division generated about 60% of the company's total sales. It generated around 22% of the company's sales. The company supplies 100. Italy. Indonesia. Matsushita. Pune 411 026 Maharashtra India Mahindra Hinoday is a joint-venture between Mahindra and Hitachi Metals.5bn (€39. company began exports of automotive casting to UK and USA. Automotive Castings division: manufactures SG Iron castings for the automotive and supplier industry.com Senior Officers Sudheer Tiloo. Certifications In 2004. Mahindra & Mahindra. Singapore. spline shaft. Lucas TVS. Meritor. In 2002. the company is now a part of a much larger supplier group. This division generated approximately 19% of the total sales in the financial year 2007-08. Varroc Engineering.50m. The company's customers include Automotive Axles.The Indian Supplier Report Mahindra Hinoday Automotive castings. 31 March 2008). Mahindra Hinoday was accredited with QS 9000/ISO 9002 certifications for its automotive castings and ceramic magnets division. Financial Overview In the financial year ended 31 March 2008. © SupplierBusiness Ltd 2009 219 .50m. the company is likely to get a major boost in sales going ahead. In 2001.5bn (€39. Mahindra Hinoday generated sales of INR2. With Mahindra groups financial as well as marketing support. Outlook Mahindra Hinoday is exploring several export opportunities to bring its export targets in line with that of Mahindra Systech.The Indian Supplier Report division. The company plans to offer its low cost manufacturing capacity for supplying castings in international markets. Managing Director Hemant Chhabria.03. Mahle Migma makes two million chilled cast camshafts and 15 million tappets per annum. Mahle Migma also stands to benefit from India's growing vehicle volumes and those of Maruti where it has a big percentage of business. Maruti Udyog. Swaraj Mazda. HM-Mitsubishi. Ind. Cummins India. Tata Motors.43m. The company has a 50% market share in the camshaft market in India. Mahle Migma has received significant business from Maruti Suzuki which itself has done fairly well. 90% exports made by the company to Germany are meant for Volvo and Deutz. Sector-1. It supplies partly-machined camshafts. Mahle Migma supplies to Eicher. 112. The company supplies fully finished cams to the GM Tavera. fully machined valve guides. Mahle. Cummins. Area Pithampur-454 775 Madhya Pradesh India Mahle Migma is a leading supplier of camshafts and valve tappets in India. TataCummins. Force Motors. The OE has made significant investments in increasing capacity in India for creating a global small car hub.000 cams for two wheelers per month. Mahle Migma has been exploring supply opportunities for fully finished tappets along with exports of various power train components. John Deere. The company started as Migma with the production of components and valve train systems in 1986 at Pithampur (Madhya Pradesh. raw chilled cast camshafts. Certifications Mahle Migma has been accredited with TS 16949 status. the company was completely taken over by Mahle. Additionally the company exports to Chery. The company is a market leader in raw tappet supplies and is exploring the option of adding more power train components to its local product portfolio. John Deere. raw valve guides. Mahindra & Mahindra. About 55% of the total production is exported to Germany. Italy and Malaysia. Swaraj Mazda. Outlook Mahle Migma will be an important exports hub for Mahle's global cam and tappets business once the strategy begins to assume significant scale. In 2000. The company supplies to the HM Mitshubishi Lancer program. fully machined chilled cast engine valve tappets. raw chilled cast engine valve tappets. The company was later converted into a 50:50 joint-venture with Mahle. semi-machined valve guides Recent Developments Corporate strategy In recent years. GM. The company is a fully-owned subsidiary of Mahle and exports 55% of its production to European and South East Asian markets. Lombardini. HM. 31 March 2008). The company is expected to receive significant business from the first global small car program being initiated by Maruti Suzuki at its Manesar plant in November 2008. Senior Vice President Operations Products Fully machined chilled cast camshafts.08) Employees c. Contracts Mahle Migma supplies one million raw tappets per month to Mahle. New Holland and Proton. semi-machined chilled cast engine valve tappets. The company supplies over 100. Plants India: Pithampur (Madhya Pradesh) (1) Sales INR 850m (€13. 580 (2008) Financial Overview In the financial year ending 31 March 2008. Mahle Migma has been selected to supply fully finished tappets to Mahle. © SupplierBusiness Ltd 2009 220 . 31 March 2008) (Year to 31. Mahle Migma recorded estimated sales of INR850m (€13. India). Tel: + 91 7292 507 738/ 253 504/ 253 523/ 253 815 Fax: + 91 7292 253 397 Internet: http://www. Hindustan Motors. Brazil. TVS and Yamaha.com Senior Officers Pradeep Batra. Germany. semi-machined chilled cast camshafts. Escorts.The Indian Supplier Report Mahle Migma Camshafts & valve tappets Address Mahle Migma Ltd Plot No. Mahle Migma has a 50% share in Maruti's business.43m.mahlevalvetrain. Vice PresidentMarketing Pradeep Bhatia. The entry of a second vendor for exhaust systems will now lead to much stricter competition. © SupplierBusiness Ltd 2009 221 .5bn (€23. Honda-Siel (15%). Mark Exhaust Systems' estimated sales figure was INR1. Tel: +91 11 2921 8767 Fax: +91 11 2921 3244 Senior Officers Rattan Kapur. Besides.7m. for exhaust systems. Arora. Managing Director Brij Malhotra. Being a privately-held company. Honda Motorcycles & Scooters India (10%) and Hindustan Motors (3%). tying it to Maruti’s fortune. Meanwhile Mark Exhaust’s strategy of moving into non-exhaust systems products has failed to add significant revenues or clients for the company. K. Mark Exhaust also exports some of its products to the European aftermarket.5% equity in the company. Mark Exhaust Systems also has a technical alliance with Futaba Industrial Co. 320 (2008) Financial Overview In the financial year ending 31 March 2008. Japan. Manager Exports and Customer relations Recent Developments Corporate strategy Mark Exhaust is poised to witness a drop in its share of Maruti’s business with the entrant of a new joint-venture between Maruti and Magnetti Marelli as its partner. Outlook Mark Exhaust’s limited success to develop relationships with other OEMs has restricted its business potential. This joint-venture was arranged for the Maruti Swift model. Joint-ventures Mark Exhaust shares a technical joint-venture with Dong Won. Mark Exhaust in turn is working to expand its customer base and product offerings. The company is also the sole supplier to the Honda City. Vice President R. 31 March 2008). The company is also the sole supplier to the Honda Civic. Products Catalytic convertors.7m. Greater Kailash-II New Delhi.The Indian Supplier Report Mark Exhaust Systems Exhaust systems Address Mark Exhaust Systems Limited S-430. jointly by Rattan Kapur and Associates (45. Sankei Giken holds 7. Japan. Contracts The company has been supplying door sashes for the Maruti Alto. a Korean supplier for manufacturing door sashes.63%). exhaust systems. Mark Exhaust Systems does not publish detailed financials. Mark Exhaust supplies exhaust systems for the Swift. for exhaust systems. Mark Exhaust has a technical and financial tie-up with Sankei Giken.110 048 Exhaust systems is the core product of Mark Exhaust.5bn (€23. Nearly 70% of the company’s sales come from Maruti. Div Manager-Commercial Rajesh Khanna. door sashes. Mark Exhaust's client list consists of Maruti (70%). exhaust gas re-circulation.37%) and the remaining 10% equity is jointly-held by technical partner Sankei Giken and Japanese logistics specialist Nissho Iwai. which is also an equity stakeholder in Mark Exhaust. Many new engine programs for Maruti may have the exhaust systems coming from the new venture. Mark Exhaust also supplies the canning for the catalytic converters for the Maruti Alto. It is planning to enter into production of metallic frills and side impact beams. 31 March 2008) Employees c. It was formed in 1996. Maruti (44. Mark Exhaust is a member of Maruti traditional supplier base. Dy GM (Operations) Sanjay Gupta. mufflers Plants Haryana (2) Sales INR1. Mark Exhaust system is the sole supplier of exhaust systems for the Maruti Zen Estilo and Versa.. 1.000 tyre and tube sets per month. tubes Address Metro Tyres Limited. 31 June 2004) to meet the requirements of Continental.02m. Metro Tyres supplied the entire requirement of four-wheeler tubes of Continental AG.110 048 Metro Tyres Limited (MTL) is a leading supplier of tyres and tubes to the two-wheeler and farm segment. Besides MTL also continues to manufacture and market bicycle parts. The company is also active in the consumer durable space with products like electric fans.500 (2008) Financial Overview In the financial year ended 30 June 2008. Metro Tyres started constructing an INR 400m (€ 7. 134/4.5m units by 2007. Founded in 1968 as a bi-cycle tyre and tube manufacturer.0m 31 March 2008) Employees c. Contracts In October 2002. Metro House. The plant would have a capacity to manufacture 100. Metro on its part has invested INR1bn (€18. Investments In June 2004. The company would export 80% of the production to Continental AG and rest 20% would be sold in India under the joint brand-name. Outlook Metro Tyres’ strategy of being a global outsourcing hub for tyres and tubes is muted by erratic rubber pricing and unsecured rubber and oil derivative © SupplierBusiness Ltd 2009 222 . Tel: + 91 11 26219097 Fax: + 91 44 26215113 Internet: http://www.The Indian Supplier Report Metro Tyres Tyres.0m 31 March 2008). The relationship with Continental AG now extends to a technical and equity collaboration. Continental agreed to supply technical assistance for the production of tyres for motorized two-wheelers which shall be branded as Continental tyres.metrotyres.41m. 135/5 Zamrudpur Kailash Colony New Delhi. Under the terms of the license the production commenced with an initial volume of 300. Metro Group recorded sales worth INR 5bn (€ 79. A part of the equipment that is going to be used in the plant. would be sourced from Continental and the rest of the equipment would be came from other global manufacturers.000 tons per annum. Punjab (India) unit to manufacture fourwheeler tyre tubes. 30 June 2004) manufacturing facility in Gurgaon (Haryana) to manufacture all types of automobile tubes.47m 31 March 2004) manufacturing facility in Ludhiana. Joint-ventures In October 2002. Products Tyres for two wheelers and farm equipment Plants Punjab (1).com Senior Officers Rummy Chhabra. Continental AG inked an agreement with Metro Tyres Ltd for the production and marketing of motorcycle and scooter tyres in India. The company has already managed to secure a long term contract with Continental for catering to its non-automotive tyre and tube requirements. Gurgaon (1) Sales INR 5bn (€ 79. The plant would start its production in the end of 2004 and would have an installed capacity of 3. Metro has started shipping supplies of two-wheeler tyres and tubes and commercial vehicle tubes. Continental had initiated an exercise for buying a minority equity stake in Metro Tyres. sewing machines under the name ORTEM. Earlier in 2004. electric irons.000 units in 2003 which shall be hiked to 1. The company has also introduced the Metro-Continental branded tyres in the Indian market. Metro Tyres has made significant in-roads into the automotive tyre market by forging a strong relationship with Continental AG. Metro Tyres is privately held and does not publish financial statements. Metro Tyres set up an INR 300m (€ 5. Managing Director Recent Developments Corporate strategy Metro Tyres is positioning itself as a global outsourcing hub for tyres and tubes. The Indian Supplier Report supplies. © SupplierBusiness Ltd 2009 223 . Metro remains a small player in the automotive market in India and needs to bag supplies to a handful of OE programs to establish itself as a significant vendor. Despite its strong emergence in the last five years. MRF developed a new tube steel-belted radial tyre for the Toyota Qualis.26m. wood and plastic surfaces. In 2002. Commercial vehicle tyre sales form a major chunk of MRF’s sales figures. MRF became the original equipment manufacturer for Hyundai Motor India (HMI) and will be supplying tyres for Hyundai’s Santro and Elantra models. The company is also increasing its product line in the non-tyre range. MRF set up a tread rubber factory in Goa (India) and diversified into automotive paints. On a global scale it ranks fifteenth. MRF Speciality coatings launched MRF Centro. Goodyear. MRF commenced operations of conveyor belt assembly in collaboration with Pirelli. MRF’s production mix comprises of commercial vehicles (20%). Certifications MRF’s Pondicherry plant and corporate functions have been accredited with ISO/ TS 16949:2002 status.The Indian Supplier Report MRF Tyres Address MRF Limited 124. a 100% polyurethane finish for wood surfaces. Tamil Nadu (3) Sales INR34.03. exterior and interior. Supermillaer for trucks and Shakti plus for tractors. scooters (45%) and others (18%). 30 September 2005) (Year to 31. Also in 2003-04. In countries where it is already present it is adding new distributors. The range was launched in 20 shades and 3 finishes. Investments MRF set up a Greenfield tyre making facility in Colombo (Sri Lanka). Bridgestone. The company has a strong presence in Southern India. MRF developed a new speciality coating called MRF Durothane. The company also has interests in conveyor belt production and specialty coatings. This facility is used as an export hub to ship tyres to Pakistan and other countries which have trade agreements with Sri Lanka. JK Industries New Product Developments In 2003-04. Durothane is 100% polyurethane for metal. Managing Director Products Tyres Recent Developments Corporate strategy MRF has been aggressive on exports adding new companies to its exports list. MRF commenced supplies of tyres to the Ford Endeavour program.600 006 India MRF is India’s second largest manufacturer of tyres. Birla Tyres. Contracts In 2003-04. MRF is also strong in the passenger car radial segment. The facility became functional in June 2006. MRF was established in 1946 as Madras Rubber Factory. Kerela. Pondicherry. In 1986. Greams Road Chennai. Unlike some other players. passenger cars (17%).27bn (€648. © SupplierBusiness Ltd 2009 224 . Ceat. MRF developed the broadest radial tyres (256 mm in width) to go as OE fitment on any car in India. The latter subscribed to 25% equity in the company in exchange for technical assistance. The company is also venturing into pretreading operations and has already set up a retreading franchise in Africa and is commissioning another one in Bangladesh. Also in 2003-04. Plants Andhra Pradesh. Goa.05) Employees c 9000 (2004) Peer Group Apollo Tyres. MRF doesn’t outsource production to smaller players. Tel: + 91 44 2852 2745 Fax: + 91 44 2625 7121 Internet: http://www. MRF has a strong distribution network with established brands like ZVTS. In November 2005. named MRF ZVRL is fitted to the Ford Endeavour.com Senior Officers KM Mammen.mrftyres. In 1989. Chairman & Managing Director Arun Mammen. The company entered the tyre market in 1963 in collaboration with Mansfield Tire & Rubber Factory. €m 648. 31 March 2006).34m (€536. This turnaround in the industry would help MRF expand its business as the increase in the number trucks would further increase the demand of tyres.3m (€14.30m.40 Net Profit.90 17. INR m 595.34 26. This industry was going through a recession in the past few years.68m. MRF recorded sales worth INR16.00m (€.05m.The Indian Supplier Report Financial Overview In the financial year ending 30 September 2005. 30 September 2005) compared to sales worth INR30.5% at INR197. 31 March 2005).10m.6m (€3.5m (€11.6m (€3.8m (€2.55 7. an increase of 12.13m.1 288.26 14.52 471.26 536.20 Profit Before Tax. an increase of 22% compared to previous year’s figure of INR13.00 1.95%.03bn (€38.33 21. Net profit improved by 63. The company will be focusing on exports to lift up its profits.21 Net Profit. but now the situation has suddenly turned around. an increase of 65%.97bn (€316. Profit before tax declined by 29.27 30. © SupplierBusiness Ltd 2009 225 .90m.14 16.81m.40 *Year ended 30th September Year* 2005 2004 2003 2002 2001 Gross sales. €m 7.03 487.03m. compared to previous year’s figure of INR189.2 842. 31 March 2005).2m (€5. MRF is experiencing growth in the demand for passenger car tyres due to the upsurge in demand for vehicles and also because its products are highly preferred in this segment.73 11.57 490.80 784. coming down from INR842. MRF recorded sales worth INR34.57m.10 1.4% with the final figure for 2005 at INR2. Year* 2005 2004 2003 2002 2001 Gross sales. Profit before tax for the six-month period was at INR312.73 23.30 940. 30 September 2005).90bn (€246.1m (€7.33%.96% to INR403. Net profit rose 39. 30 September 2004).30 *Year ended 30th September Outlook The truck tyre forms the dominant product group of the company. INR m 403. Operating profit declined by 2. 31 March 2006) in 2005 compared to a net profit of INR120.60 317. 30 September 2004) in 2004.03 22.125.00 487.62 5. 30 September 2005) in 2005. INR bn 34.26m. 30 September 2004) in 2004 to INR595.36m. 31 March 2006) in 2005.00 22.27m (€648. For the six-month period ended 31 March 2006. 31 March 2005) in 2004.26m. € m 11. 30 September 2005) in 2005 from previous year’s figure of INR288.62m.173.89 Profit Before Tax. gears.com Senior Officers Satyanand Munjal. India) facility into a separate company Shivam Autotech.3m. Currently. Munjal Auto is also a supplier to Honda Motorcycles and Scooters India. In the 1990s Hero Group purchased Gujarat Industrial Investment Corporation's stake and shifted its focus to automotive components.78m.12. Munjal Auto Components announced investment of INR235m (€4. To counter input cost pressures. 500 (31 March 2008) Financial Overview In the financial year ended 31 March. Divestments In March 2006. Investments In 2005. 31 March 2005) in its Waghodia (Gujarat. GIDC Estate. forged gear blanks Address Munjal Auto Industries Ltd. spline shaft.munjalauto. Plants Vadodara (Gujarat) Sales INR2. Vadodara. This has led to stagnant volumes for most suppliers to the two wheeler sector. the company invested INR220m (€3. Due to the investment. Waghodia – 391760. General Manager.17bn (€34.Finance Products Cold precision forgings.based (Haryana. Chairman Sudhir Munjal.The Indian Supplier Report Munjal Auto Sheet metal components. Munjal Auto however continues to operate from a relatively higher cost base.6 million units to 12 million units and gear finishing capacity from 3. Munjal Auto reported sales of © SupplierBusiness Ltd 2009 226 . Hero Honda is the principle customer of Munjal Auto Industries accounting for 98% of the company's sales. The company supplies nearly 75-80% of Hero Honda's requirements in all high-end motorcycles for the range of components its produces. Gujrat.6 million units to eight million units. The company was renamed Munjal Auto Industries and its bicycle business was hived off in 2001 to make it purely an automotive supplier. Significantly.08) Employees c. In 2005. The company also supplies small stampings but mostly for two-wheeler sector.6 million units to 7. Munjal Auto Industries de-merged its Binola. the company expanded gear blank machining capacity from 9. most critical suppliers followed Hero Honda to the new location. Tel: +91 2668 262421-26 Fax: +91 2668 262427 Internet: http://www. India) based plant. sheet metal components. In 2005. 31 March 2008) (Year to 31. 31 March 2005) to add higher capacity presses and machining equipment for the production of a new component for Hero Honda Motors. 187.2 million units. Munjal Auto Components invested INR270m (€4. Munjal Auto Industries came into existence through a joint-venture between Hero Cycles and Gujarat Industrial Investment Corporation Limited (GICL) for the production of bicycles.16m. India Munjal Auto is a Hero Group company manufacturing forgings such as gears and shafts. Managing Director Ravi Sharma. Hero Honda relocated half of its production to a new facility at Haridwar which enjoys tax breaks. warm precision forgings Recent Developments Corporate strategy Munjal Auto’s dependence on Hero Honda helped the company grow in critical mass. Contracts Munjal Auto Industries supplies side step assembly for the Chevrolet Tavera.90m. A large percentage of Munjal Auto's sales come from group company Hero Honda. 31 March 2005) in its Binola (Haryana. India) based sheet metal unit for expansion of its existing capacity of rim and muffler manufacturing and to meet increased demands from Hero Honda. Established initially as Gujarat Cycles Limited in 1988. 2008. Warm and cold forged component capacity was also increased from 6. the two-wheeler market has matured leading to flat sales growth. 71 2008 2007 2006 2005 2004 Outlook Munjal Auto’s sales to two wheeler programs have stagnated on the shift of its main customer’s manufacturing base and the preference being given to lower cost producers operating at locations enjoying a tax-holiday. €m 3.29 260. 31 March 2008) decreasing by 11.41 7.85m (€3.43m. INR m 210.51 Operating profit.34 391.75 8. decreasing by 45.92m (€4.15% compared to previous year's sales of INR2.2m. INR m 101. 31 March 2008). Presently the company does not have any supply contracts for the Nano.443.56 34.3m. Tata’s plans to relocate the Nano to Gujarat significantly increases Munjal Auto’s prospects to supply to the higher-end variants being developed by Tata.341.17bn (€34.37 Operating profit.85 227. 31 March 2007) in 2007.74 2.74% to INR153.55m (€2. INR m 153. 31 March 2007).56 187.44bn (€42.56m (€1.12 5.840.20 43.71 6.171.05 305.00 1. Profit before Tax (PBT) decreased by 43.The Indian Supplier Report INR2.23 4.60 3.04 505.62 7.94 7.15 305. €m 34.32 5.31 Profit before tax. 31 March 2008) from INR272.71m. 31 March 2007).41 Profit before tax.59 43.60 5. Year 2008 2007 2006 2005 2004 Year Gross sales.24 2.03 402.36 325. © SupplierBusiness Ltd 2009 227 .71 Net Profit. INR bn 2. €m 1.00 Gross sales.55 272.461.60m.92 344.43 4.41 Net Profit.24 4. €m 2.24m.94% compared to previous year's INR187.32 416.27 2.31 42. Net profit of the company in financial year 2008 was INR101. Other than domestic clients MSL ships supplies to Japan. Germany. The company further has a large dependence on Hero Honda. Chairman Yogesh Munjal.The Indian Supplier Report Munjal Showa Shock absorbers and suspension systems Address Munjal Showa Limited 9-11 Maruti Industrial Area Gurgaon . UK and USA. India). HMSI. However. 31 March 2008) (Year to 31. Investments In 2008. Nearly 88% of Munjal Showa’s revenues come from the twowheeler industry.122 015 Haryana India Tel: +91 124 2340427-29 Fax: +91 124 2341346 Internet: http://www. A year after commencing operations in 1988. Products Front forks. this has restricted MSL’s supply prospects with other OEMs.com Senior Officers Brijmohan Lall Munjal. Hero Honda and Maruti Udyog together account for more than 90% of MSL’s revenues. The OEM’s consume nearly 60% of the produce and the automotive aftermarket claims the rest. two-wheeler market. The company also counts Hero Motors. Showa’s global presence mitigates any possibility of MSL’s overseas foray.000 front forks per annum with plans to cater to the aftermarket. MSL witnessed a robust growth through the 90’s and continues to be a strong player owing to its strong relations with Hero Honda and Maruti. as a joint-venture between the Hero Group (39%) and Showa Corporation. 1. Subsequently the company developed a telescopic shock absorber for Hero Honda and undertook expansion to include struts and window balancers for four-wheelers to its portfolio.09bn (€112. struts and window balancers. which has proved to be a fairly successful strategy as Japanese automakers account for a major share of sales n in India. Moreover MSL continues to derive far greater revenues from supplying two wheelers as compared to four wheelers. During the end 80’s and early 90’s MSL went on to add various products to its portfolio.03. Munjal Showa Limited (MSL) was established in 1987.08m. MSL undertook the machining of bottom case which plays a major role in a front fork.Marketing Hero Group owned. Kinetic Motors and Majestic Auto as it clients. gas springs. MSL announced the construction of a greenfield manufacturing facility at Haridwar (Uttaranchal. The company designs and manufactures shock absorbers and struts for various two-wheeler and fourwheeler manufacturers. 85% of which is claimed solely by Hero Honda. However the company can be integrated into Showa’s global supply chain.000 shock absorbers and 530. MSL came under severe pricing pressure in the early 90s owing to the escalated costs in the local raw material market.munjalshowa. Plants Gurgaon (2) Sales INR7. Munjal Showa accounts for 29% market share in the two-wheeler segment and around 12% in the four-wheeler segment. Honda SIEL. Joint Managing Director CM Midha. The company also developed shock absorbers for washing machines and photocopiers.500 (31 March 2008) Recent Developments Corporate strategy In recent years. Managing Director Seiji Konoue. Munjal Showa Limited (MSL) is the second largest suppliers of shock absorbers and related ancillaries to the two wheeler and four wheeler industry. MSL has been a lead supplier to vehicle programs of Japanese origin.08) Employees c. The company has two plants located in Gurgaon (Haryana. MSL started commercial production with an initial capacity of 980. four-wheeler market and commercial vehicles. DGM. shock absorbers. Japan (26%). India) with a capital outlay of INR1bn © SupplierBusiness Ltd 2009 228 . Collaborations Munjal Showa Limited is a joint-venture between the Munjal Group and Showa Corporation of Japan. 35 307.17 420. Maruti Suzuki (Omni van) and Honda-SIEL (City.71m.35m (€6. 31 March 2008).95 Outlook Munjal Showa is assured of supply contracts to Honda’s vehicle programs and also bags brisk business from other Japanese OEMs including Maruti Suzuki.49 7.79 6. front fork and shock absorbers for 4. € m 4.52 Operating profit.214.3 211.49 111. €m 112. INR m 193.19 533.54 Profit before tax.19 259.30 75. 31 March 2007). which will be ramped up to match the production of 6. € m 7.49 9. INR m 474.08m. Haryana with a capital expenditure of INR360m (€6. 31 March 2008) as against previous year's figures of INR259.84 5.85% to INR297. The plant will manufacture front and rear cushion. This spurt in demand is being matched by MSL by investment in a new facility in close proximity of Hero Honda’s Haridwar unit which enjoys tax breaks and other incentives.85 396.85m (€4. MSL commissioned a new facility in Manesar.37m. The company has also added clients like Tata Motors (Indica).24 5.31 78. 31 March 2007) in the previous year.49m. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales.08m. €m 3. touching INR7. against INR6. 31 March 2007) in 2007.042. Restriction of financers for credit advances following deliquesces lead to a drop in sales of motorcycles in fiscal 2007/08 lowering expected financial performance.2m (€3.21 7.05m.000 motorcycles per day from 2010. 31 March 2008).09 92.The Indian Supplier Report (€15.92bn (€119.05 4.42 4.93 324.919.61 222.77 1.39 3.06 Net Profit.52%.966.72 310. INR bn 7.87 202. car) etc. 31 March 2008) as compared to INR396.09bn (€112. Contracts MSL has supply contract with Hero Honda (all models). Kinetic Motor (Scooters).87m (€4. In April 2006. MSL has been the sole vendor for the export requirement of Maruti Udyog Limited and Honda Motorcycles and Scooter India Private Limited.95 6.49 3.65% to INR193.84m. New Product Developments All new product development is targeted at meeting new requirements from clients.83 5.71 6.77 Gross sales. While demand for passenger cars is seen stagnating in the domestic market and is expected to revive only by the last quarter of 2009.73 3. Net profit for the company in 2008 slipped 25.51 Profit Before Tax. 31 March 2005).000 motorcycles per day.00 5. It is also developing struts for the new models of cars of Honda Siel and Maruti Udyog. The plant is expected to commence production by December 2008.34 401.49m. Hero Honda has been witnessing a strong sales growth. Profit before tax declined 24. Honda Motorcycles & Scooters India (Activa Scooter).08 119. © SupplierBusiness Ltd 2009 229 . Financial Overview For the year ending March 2008.093.68 Net Profit.94 Operating profit. Munjal Showa's sales grew by 2. INR m 297. India Neolite ZKW is a major supplier of automotive lighting systems in India. Tel: +91 11 4563 6363 Fax: +91 11 2811 6025 Internet: http:// www.Sales & Marketing Anil Chaturvedi. Gurgaon (2). Piaggio. The company has Plants Delhi (2).John Deere. Daimler. Noida (1) Sales INR 700m (€11. beacons. Senior Vice President. corner lamps. Off late Neolite’s parent unit PPI has been producing plastic components while Neolite has been manufacturing plastic as well as sheet metal components. TAFE . plastic components. 31 March 2008) Employees c. front grills. Of these two units are in Gurgaon (Haryana.Germany and Caterpillar. Neolite began operations five decades ago as an aftermarket supplier as the OE market was very small. One of the Gurgaon units is engaged in the production of sheet metal parts. The company also plans to leverage ZKW’s technical know-how with LED. Neolite ZKW would have additional supply opportunities made available through ZKW’s Asian supply chain. 300 (2008) © SupplierBusiness Ltd 2009 230 . sheet metal components Recent Developments Corporate Strategy In recent years. The company’s domestic client base consists of Eicher Motors. Mahindra & Mahindra (Auto & Tractor Division). The company exports half of its products (to 90 countries and claims to have a range of 1. Neolite ZKW.110 064.The Indian Supplier Report Neolite ZKW Lightings Lighting systems Address Neolite ZKW Lightings.06m. John Deere. signal lamps. the cost of lighting technology per vehicle in Indian market has doubled due to new introductions. In order to strengthen its technical competitiveness and to add to its offshore supply capability. Neolite Industries entered a joint venture with ZKW-Zizala Lichtsysteme GmbH of Austria with a 74:26 equity split structure. New Delhi . Bajaj Tempo. Mayapuri Indl Area. Managing Director TR Sharma. Moreover. Infrastructure Neolite has a total of five units located in and around Delhi. Royal Enfield Motors.International Marketing PK Jain. JCB. Neolite ZKW announced that it was investing in a greenfield manufacturing facility in Maharashtra with an installed capacity of 2.5 million units per annum. Associate Vice President.Italy. Audi.500 different kinds of lighting products and 200 customers worldwide. side indicators. Caterpillar India. The company now expects to strategically tap the upcoming supply opportunities for the rapid capacity expansion that is being done by various new OE entrants. In Europe. ZKW supplies to BMW. Investments In January 2008. First tier players Hella and Federal Mogul also source their requirements from Neolite. Tata Motors. Globally. B-24. India) and one is in Noida (Uttar Pradesh. International Tractors. Senior Vice President Products Head lamps.com Senior Officers Rajesh Jain. The company has a strong export presence with 50% of production being shipped overseas. L & T . Neolite can benefit from ZKW’s supply relationships and seek supply contracts by a follow through source model. India). tail lamps. AFS. Neolite supplies to Piaggio. The entire automotive business of Neolite was transferred to the joint entity. night vision and pedestrian protection technologies. Hindustan Motors. Eicher Tractors. Bharat Earth Movers. Phase – I. Volvo. The company has significantly expanded into the OE segment in the past two decades. Neolite forged an equity alliance with ZKW Austria in 2008. Porsche and GM. The company is more focused towards commercial vehicle lighting. The new plant is expected to commence production by 2009.neoliteppi. auxiliary lamps. Joint-ventures In April 2007. Neolite does not disclose complete financials. light simulation software for generation of reports as per ECE and SAE guidelines. Outlook Neolite’s move to rope in a strong technology leader will help the company access the passenger car contracts in a more robust way. semi conveyorised assembly lines. Testing & validation Neolite’s testing facilities are equipped with equipment essential for Ehomologation standards and SAE/ DOT requirements. Neolite supplies lighting systems to Swaraj Mazda for its luxury buses. Unigraphics/ Catia for 3D modelling and CNC programming.53m. Contracts Neolite supplies lighting systems to Volvo India for its range of buses. Neolite supplies lighting systems to ICML for its Rhino RX program. EDM machines. © SupplierBusiness Ltd 2009 231 . Financial Overview In the financial year ending 31 March 2008. automatic lacquer conveyors. The Noida facility is dedicated to exports. press shops. CAD/ CAM system processes.06m. Neolite supplies lighting systems to Piaggio in India and Italy for its sub one tonne commercial vehicles. ultrasonic welding machines. The company is equipped with CAD/CAM R&D. Neolite supplies lighting systems to AMW for its commercial vehicles. New Product Developments Neolite has an in-house R&D team and incurs an expenditure of 5% of sales of product development. online photometric testing machines. Being a privately held company. hard coating machines. ZKW’s strong European client base will offer a significant follow through source supply opportunity to the company in India. TUV approved photometric labs and testing machines. Certification Neolite’s manufacturing units have been accredited ISO/ TS 16949 status. Neolite supplies lighting systems to MAN Force for its commercial vehicles. 31 March 2008). vacuum metalizing machines. semi automated processes. hotplate welding machines.The Indian Supplier Report two more units in Delhi. Neolite had estimated domestic sales of INR700m (€11. Neolite has installed sheet metal presses. painting equipment and conveyor. 31 March 2008) and exports sales of US$350m (€5. CNC milling machines. vacuum metalizing operations. Neolite’s supply capability was restricted in the passenger car space due to specific product development capabilities. injection moulding machines. fully computerized goniometer. Moreover. warehousing and computerized dispatch operations. assembly lines. Until recently. Mindarika: Is a leading four-wheeler switchgear manufacturer with revenues of INR 843. Other customers include Case New Holland. Chairman NK Minda.The Indian Supplier Report NK Minda Group Horns. lighting. International Trust (USA).07m. Minda Industries generated sales worth INR 1. Piaggio (Italy) and PMTC (France). Power window switches: auto up & down functions. switches. Renault. The group’s initiative for © SupplierBusiness Ltd 2009 232 . Piaggio (Italy). Panel switches: blower & A/C switch. The company has Maruti and Hyundai as customers for fitting CNG and LPG kits on their product range.Sikanderpur Badda IMT Manesar Distt – Gurgaon Haryana. The company exports nearly 97% of its production with estimated sales of INR500m (€8. light switch. Overseas Automotive (Sri Lanka) and Microcar (Sri Lanka). Aprilia (Italy) and Triumph (UK) in the two-wheeler segment.200 people with facilities in Gurgaon (Haryana). 31 March 2005) in 2005. The company has recently entered into other segments through jointventures. door lock. The NK Minda group consists of the following companies: Minda Industries: The flagship company of the NK Minda group and Minda Industries designs. 31 March 2005) in 2005. Yamaha (Indonesia. Minda Industries is the market leader in its segments with a 65% market share.Nawada. Fiamm Minda Automotive: It is a leading exporter of four-wheeler horns to European OEMs. The company exported components worth INR38m (€0.67m. Philippines and Thailand). John Deere. Minda FIAMM Acoustics: Is a supplier of two and three-wheeler horns with sales of INR251m (€4. Managing Director (CEO) Sudhir Jain. Delhi. gear shift switch. plunger type switch. 31 March 2005) in 2005 with a market share of 42% in the segment. hazard warning switch.43m. air direction control.com Senior Officers SL Minda. ignition switches. Mission Trading (USA). Minda Industries export customers consist of Robert Bosch GmbH (Germany).44m.7m (€ 14. to this end its initiatives for starter motors and alternators would compete with Lucas TVS.93m. 31 March 2005) in 2006. The company employees close to 1. Pune (Maharashtra). Mexico). Thailand and Malaysia). Mazda and BMW. 31 March 2005) in 2005 through its product range of CNG and LPG kits. rotary switch Minda Rika: Lever combination switches: Dimmer switch. Surya Jaya (Indonesia). The company has entered into a series of equity alliances for various product streams. In areas that the company has entered.38bn (€ 24.mindaweb. MBK (France). wiper switch. grips. washer switch. Fiamm Minda exports 20.road vehicle switchgear.85m.000 horns per day to customers including Peugeot. Minda TYC Automotive: Is a leading supplier of lighting products for two and three wheelers. RR fog lamp switch. KAG Associates (Sri Lanka). Fatehpur P. The company signed a technical assistance agreement with Tokai Rica in 1994 for the production of combined switches. handle bar system assembly. handle bar switches. Ford (China). The company commenced exports to Japan in 2002 and USA in 2004. Valeo Minda Electrical Systems manufactures starter motors and alternators. horn switch. Piaggio (Italy). Hosur (Tamil Nadu) and Aurangabad (Maharashtra). The company also supplies to global OEMs including Honda (Indonesia). blower switch. Suzuki (Malaysia. GM-DAT (Korea. off-roaders and four-wheelers with sales of INR 343m (€ 6. rocker switch.122 004 India The NK Minda Group is amongst the largest manufacturer of switches for two and three wheelers with a market share of 65% in the two-wheeler segment. temperature adjustment control Others: Recent Developments Corporate strategy NK Minda Group has significantly reshaped its business structure in the last four years. 31 March 2005) in 2005. FR fog lamp switch.42m. The company has a facility each in Gurgaon (Haryana) and Delhi with 250 employees. Suzuki (Japan). Peugeot (France). 31 March 2005) in 2005. Corp Head Finance & Planning (CFO) Products Minda Industries: Brake switches. RR defog switch. RR washer switch. wiper switch. lever and holder assembly. Minda Impco: Minda Impco generated sales worth INR130m (€2. modular switch. RR wiper washer switch. it is challenging well established leaders. The company derives 90% of its sales from OEMs. hazard switch. CNG/LPG kits Address Village. develops and produces two & three-wheeler and off. intermittent time control. window lock Oil pressure switches HVAC panel assemblies: light switch. Tel: + 91 95124 2290 427/ 428/ 674/ 675/ 693/ 698 Fax: + 91 95124 2290 676 Internet: http://www. Torica (Japan). fresh and re-circulation control. Yanmar Agricultural Machinery (Japan). passing switch.O. panel switch. 39m. off-roaders and four wheelers.The Indian Supplier Report Ash trays & lighters. The facility has been set up at a capital cost of Plants India (6): Delhi (1). The group’s joint strategy of having a design base closer to the location of actual product development should pay off handsomely in generating domestic sales. Earlier. 31 March 2005) within the first year of operations. Minda Fiamm commissioned a battery manufacturing unit at Pant Nager (Uttaranchal). Joint-ventures In July 2007.96bn (€62. Maharashtra (2). lamps and horns at a capital expenditure of INR 300m (€ 5.19m. commercial vehicles.32bn (€131. Haryana (3).2bn. Italy for the production of automotive horns for four-wheelers under FIAMM Minda Automotive Limited as an Export oriented Unit. Minda Industries operated plant in Delhi was brought under Minda FIAMM Acoustics Limited. The new company started operations in March 2008. Divestments In February 2005. 31 March 2005) to Indonesia presently and is expecting revenues worth INR 700m (€ 12. NK Minda Group has already forayed overseas with its base in Indonesia and is now scouting for potential buyouts in Europe. Minda Industries inked a joint-venture with FIAMM SpA. The company exports goods worth INR 350m (€ 6. Minda Industries inked a joint-venture with FIAMM SpA.31m. The operations are being managed through Valeo Minda Electrical Systems India Pvt Ltd (VMESPL). ASEAN and North America. warning triangles. Taiwan for the production of lighting products for two and three wheelers. Minda Impco a joint venture was formed between Minda Industries and Minda Impco Technologies. The company supplies CNG/LPG kits to OEMs and the aftermarket with a facility in Manesar. two and three wheelers and industrial applications. 2. Gurgaon. 31 March 2008) Employees c. In 2003. reverse lamp switches. VMESPL is targeting revenues of INR2. Minda Industries signed a joint venture agreement with Valeo for manufacturing lighting systems.58m. Minda TYC Automotive Ltd a joint venture was formed between Minda Industries Limited and TYC Brother Industrial Co. Itlay for the production of two and three wheeler horns under Minda FIAMM Acoustics Limited. 31 March 2005) and a headcount of 350. Also in January 2007. In September 2005. Minda Industries signed a joint venture with Valeo for manufacturing EGR valves In 2004.35m. side indicators. rear for lamps. Minda Industries commissioned its automotive switch manufacturing unit at its Pantnagar unit. In February 2007. 31 March 2008) Minda Industries: INR3. 31 March 2005) in 2005. Minda Industries executed a joint venture agreement with Valeo for the production of alternators and starter motors for passenger cars.25bn (€51. Minda TYC achieved revenues of INR 350m (€ 6. The group is targeting acquisitions worth INR3. near Gurgaon (Haryana). In 2004. Tamil Nadu (1). NK Minda group shares a joint-venture with Ashok Minda group for their international foray. work lamps Minda Fiamm Automotive horns Minda Impco LPG/ CNG kits manufacturing batteries is challenging several well established battery manufacturers.46m.75bn annually by 2010 with intial sales directed solely at passenger car OEMs. Minda Industries along with AK Minda Group commissioned a joint design center at Tokyo. Minda Industries hived off its horn manufacturing facility to Minda FIAMM Acoustics Limited. 31 March 2008) by 2010. with a greenfield unit at Pune built at a capital cost of INR1. Investments Mindarika has added a SMT (Surface Mount Technology) line at its plant to facilitate in-house completion of electronic work. The newly formed company PT Minda Automotive Asean was established in Indonesia for the production of automotive parts such as switches. door lamp switches. head lamps. tail lamp.500 (2008) © SupplierBusiness Ltd 2009 233 . the group had consolidated most of its facilities located in and around Delhi to a plant in Manesar. Indonesia (1) Sales Group: INR8. Also in January 2007. Japan for ensuring that the two companies could be involved in projects initiated by Japan based OEMs from the design stage across product categories in the two groups. stop lamp switches. In April 2007. In 2001. trunk/lid parking brake switches Minda TYC Front fog lamps. Mindarika commenced production at its new Pune based switch manufacturing facility. high mounting stop lamps. In January 2007. a newly incorporated joint-venture.19m. Certifications In 1998.55 208.55 102. Minda Industries established a design studio to facilitate innovative styling of its products. Minda Industries announced that it had been mandated fo supplying headlamps and rear combination lamps to Volkswagen for the Polo starting 2009. 31 July 2005) to cope up with the demand from customers in Southern and Western regions. Mindarika supplies ride control mechanism switches for the Bajaj CT 100.34m. Minda Industries supplies rear combination lamps for the Bajaj Platina at its Pant Nagar plant. Net Profit was reported at INR157. INR m 197. an increase of 2.PQCDSM-TPS programs. Minda Impco supplies CNG fuel kits to the Maruti Suzuki Zen Estilo program.07 2.15 74.12 Net Profit. The switch facilitates the function of a gear shifter.82 NA Profit Before Tax. Minda Industries added Robert Bosch GmbH – Germany. Minda Industries is the sole supplier of handle bar assembly to Bajaj Auto. NK Minda Group generated sales worth INR8.48m.17% compared to INR135.26 © SupplierBusiness Ltd 2009 234 . growing 16.The Indian Supplier Report INR 175m (€3.06 399. Other entities in the NK Minda Group are privately held and do not publish their financial statements.866.35 129. Minda Industries was accredited with ISO 9000 status.31 294.680. Minda FIAMM has developed a new horn for Tata Motors to tackle the problem of vibration resonance of bracket in vehicles. Minda FIAMM has developed a new horn with improved acoustical features for Bajaj Auto. In 2005.32bn (€131.35m (€2. Minda Impco is supplying CNG kits for Hino trucks being supplied to Pakistan and Bangladesh with volumes of about 300 kits per year.96bn (€62.961.46m. Mindarika has also developed a three pin switch for the Bajaj Chetak 4S. In 1997. Minda Industries commenced operations of bar handle assembly at a plant in Waluj (Maharashtra. 31 March 2008).962.86bn (€66.44 Operating Profit. 31 March 2008) in fiscal 2008. 31 March 2007) in 2007.24 135. The company was awarded ISO 14001 and OHSAS 18001 certification in 2003. Mindarika has developed a ride control mechanism switch for Bajaj CT 100. Mindarika supplies to all OEMs in the southern region except Hyundai Motor India.France to its list.77m. New Product Developments In 2005.00 3. Minda FIAMM has also developed horn with two-strip/ bent bracket horn for Suzuki Indonesia.538.85 105. Contracts In August 2008.45% compared to sales of INR3.4% to INR197. 31 March 2008). The company incurs an R&D expense amounting to approximately 5% of the total sales. 31 March 2007) in 2007.52 1.12m.62 1.55m (€3.45 152.74m (€3. The company has also developed a new horn for TVS Motors.33m. INR m 157.69m. Financial Overview During the financial year ended 31 March 2008. Profit before tax for the period decreased by 7. In 2003.24m (€2. 31 March 2008) from INR213. Minda Industries generated sales worth INR3. The company has also implemented TQM. INR m 484. PiaggioItaly and PMTC.74 213. India). Mindarika was accredited with QS 9000 certification and TS 16949 & ISO 14001 in 2003. The switches being manufactured are primarily for four wheeler manufacturers like Mahindra & Mahindra and Tata Motors. 31 March 2007) in 2007.58m. Year 2008 2007 2006 2005 2004 Net sales. INR m 3.75 356. The growth strategy is underpinned by a combination of global expansion plans.74 28. To this end.81 1. € m 7.90 6. The group’s strong focus on technology development and absorption enables it to earn better margins in an increasingly cluttered market.65 6. © SupplierBusiness Ltd 2009 235 .22 NA Profit Before Tax.74 Operating Profit. the design centre initiative will help the group in progressively evolving to the next level in component development.39 Outlook In 2005.The Indian Supplier Report Year 2008 2007 2006 2005 2004 Net sales. large exports growth and diversification in product range through joint-ventures.88 2. 31 March 2008).34 2.63 5.69 3.48 2. € m 3. €m 2. achieving revenues worth INR15bn (€237m.58 66.96 Net Profit. NK Minda Group had set an ambitious target to triple its sales by 2010.12 3. €m 62.71 1.41 1.91 34.77 49. NRB commissioned a greenfield facility in Thailand in October 2008.A. thrust bearings. The company also supplies cylindrical roll bearings with a market share of 16%. The company expanded its general bearing division at Jalna (Maharashtra) for the production of cylindrical roller bearings in 1982. Mahindra Sona. switchgear. Subsequently. Overall the company produces 600 different types of bearings and commands a market share of 12% in the domestic organized sector.29bn (€51. TVS Motors. Hindustan Hardy Spicer. NSK (Poland). SNL manufactures cage-guided drawn cup needle bearings. Hyderabad. hand tool and consumer durable industries.M. NRB is focusing on exports to counter lower margins in the domestic market. Delphi Automotive Systems. precision steel balls. NRB supplies mainly to the automotive industry with smaller volume deliveries to the textile machinery. NRB's customers include Ashok Leyland. needle cages. The Hyderabad unit currently produces stampings. Honda Motorcycles & Scooters. Majestic Auto. fafnir housed units. Renault Trucks. inner rings.12. Waluj. the company was re-christened NRB Bearings Limited in 1990.nrbbearings. Thane. In June 2000. roller thrust bearings. cylindrical roller bearings. connecting rod needle cages for piston pin and crank pin along with other Sales INR3. Yamaha Motor India. needle thrust bearings. bearing with cage-guided needles. Products Ball bearings. President Mr Devesh Singh Sahney. Jalna. NRB was incorporated in 1966 as the Needle Bearing Company. Spicer India and ZF Steering Gear India. The company expanded into other bearing classifications and established new facilities in Aurangabad in 1980 and Waluj (both Maharashtra) in 1981. In November 2005. Nachi Industrial S. NRB is trying to penetrate into the lucrative aftermarket which returns higher margins. hub pin kits. Kinetic Motors. MICO Bosch. Maruti. housed units. Rane. The company is specifically focusing on the semi-urban and rural markets. needle bushes.The Indian Supplier Report NRB Bearings Ball and roller bearings Address NRB Bearings Limited. Force Motors. Fort.08) Employees NRB: c. bottom roller bearings. the Sahney family (59% stake).92m. spherical roller bearings. The company targets 80:20 balance between domestic and export sales. needle cages and rollers.8m. 31 March 2008) (Year to 31. The influx of Chinese and Thai made bearings have significantly hurt the pricing power of the company despite its higher quality of products. tapered roller bearings.. Uttaranchal Thailand Recent Developments Corporate Strategy In recent years. Hindustan Motors. LML Engineering. full complement needle bearings. 15 Sir P.350 (2008) SNL: c. Swaraj Mazda. crank pins. Hero Honda. Owing to its diverse product range. wide inner ring bearings Plants India: Aurangabad. Royal Enfield Motors. Road. needle rollers. NRB bearings acquired Shriram Needle Bearing Industries Limited (SNL). 30 November 2005). Acquisition In November 2005. Needle roller bearings and cylindrical roller bearings are the highest growing segments in the bearing industry. GKN India. Director. in a joint-venture between Nadella. To offset the adverse effect of the India-Thailand Free Trade Agreement (FTA). CMD Ms Harshbeena Singh Zaveri. Brakes India. Bajaj Auto. The Hyderabad (Andhra Pradesh) unit was absorbed into the company in 1991 as a result of a merger with Sahney Steel and Press Works. hub pin kits and connecting rod kits.1. Strategic Sourcing NRB Bearings is India’s largest manufacturer of needle roller bearings with a 70% market share.205 (2008) © SupplierBusiness Ltd 2009 236 . Mahindra & Mahindra. Tata Motors. Eicher Motors. France (with 26% stake) and Indian promoters. spherical bearing production commenced at the Jalna facility. Dhannur.com Senior Officers Mr Trilochan Singh Sahney. Sona Koyo Steering Systems. The company is keen to enter the Thai market which is dominated by Japanese suppliers and OEMs. the Sahney family bought out Timken SAS/ Nadella's holding in the company. the Sahney family acquired 26% stake in the company from Timken SAS/ Nadella for INR580m (€10. Mumbai 400 001 India Tel: +91 22 22664160 Fax: +91 22 22660412 Internet: http:// www. 7m. Indonesia. INR m 3.6m (€6.6m. €m 51. Italy.33 4.The Indian Supplier Report types and range of needle bearings. a decrease of 6. NRB continues steady business from the OEMs. steering systems. In 2008. 31 March 2008). The unit has an installed capacity of 22m ball and roller bearings per annum. €m 9. 31 October 2008).6m (€5. NRB commissioned a new bearing manufacturing facility in Thailand with an installed capacity of 30m per annum at a capital investment of INR300m (€4. New Product Developments NRB Bearings spends around 2% of its annual sales on research and development.83 3. INR m 593.92 60.5m. TAFE and Tata Motors. However the influx of Chinese and Thai bearings has significantly affected NRB’s supplies to the replacement market leading to a considerable reduction in pricing.40 657. © SupplierBusiness Ltd 2009 237 .83% to INR346. Thailand. Operating profit decreased by 25.38 13. Taiwan. This is likely to grow with time.66 8.20 272. INR m 529. NRB Bearings registered nearly 50% growth in exports in 2008 compared to a 6% growth in domestic sales.70 2.37 10. connecting rods. Sona Steering. Citing lower sales growth in India.70 793. 31 March 2007) in 2007.29bn (€51. Maruti.50 Net Profit.62 Operating profit.17% to INR593.87m. 31 March 2007).44 54. Development work is done by 20 engineers at its R&D Centre in its Thane plant. The company exports bearings for powered hand tools application to France. € m 8.10 526.71 6.4m (€13. Kinetic Engineering. USA and Vietnam.23 Profit before tax. chassis and suspension and industrial machinery.60 435.80 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Outlook NRB enjoys a significant pricing premium over its competitors in the local aftermarket.80 Gross sales. €m 5. four-wheelers and commercial vehicle OEMs in India for use in gear boxes.60 340. NRB started its greenfield manufacturing facility at Pant Nagar (Uttaranchal) at an investment of INR 250m (€4m.80 Operating profit.499.60 397.90 3.70 12. LML.1% compared to previous year's figure of INR3. The company’s move to establish a gateway facility in Thailand will help NRB to explore business opportunities in ASEAN which have traditionally been Japanese strong holds.932. UK. Mahindra and Tata Motors.48m.70 440. 31 March 2008).50 545. UAE. Kenya. Malaysia.60 Profit before tax. MICO.18 Net Profit. Investments In October 2008.24 9. Mahindra & Mahindra.7m (€9. Denso India.61 43. Net profit decreased 12. 31 March 2008) in 2008 from INR793.90 203.87 6.90 599. NRB Bearings reported sales worth INR3. INR m 346.35 9.285. The company supplies to two-wheelers. Philippines.5bn (€60.92m. 31 March 2008) in 2008 from INR397.60 2. SNL's domestic customers include Bajaj Auto. Portugal. Financial Overview In the financial year ended 31 March 2008.40 330. Singapore.81 7.463. Year Net sales.60 2. with contracts to supply closely located plants of Bajaj.61 37.48 6.013. the company has embarked on a significant drive to increase its thrust on exports. 31 March 2007) in 2007. In the domestic market.44m. Kinetic Honda. main stand. 17% of drive and transmission components. Arvin Meritor USA. European clients like Honeywell. Managing Director Ravinder Mehta. frame assembly. Honda Motorcycle & Scooter India. Hero Honda Motors is one of the largest customers of the company. Delphi Automotive. Omax Auto accounts for 32% share of domestic production of engine parts. wiper rods Recent Developments Corporate Strategy Omax has initiated a strong move towards diversifying its client base by tapping into passenger car and commercial vehicle supply programs. Atlantis Global Services USA. piston rods. side cover. engine guard. footrest. sprocket cam and sprocket timing. The company has also added a press line at the Plants India: Bangalore (Karnataka)(1). Omax manufactures sheet metal tubular and machined components for the automotive industry. pedal kick starter. shroud fan. Around the same time company aims to bring down Hero Honda’s share in its business to 52%.65% of the total production. A strong sign of this was seen with a recent supply contract where the company made a significant investment in chassis production with single source assurances. transmission sprockets. Tenneco Automotive.Czech Republic. The company intends to become a global player in various sheet metal. Supersprox . Sundaram Clayton and Mitsuba Sical.omaxauto. Yamaha Motors India and Indian tier I suppliers such as Bharat Seats. chain cases. brake pedal. Delphi Automotive. piston rods for damper assembly. complete frame assembly. Enforcement Directorate (Operations) DS Sharma. Managing Director KC Chawla.com Senior Officers RC Bhargava. mainly Delphi Automotive Systems. Krishna Maruti. 16% of suspension and braking parts and 8% of electrical components. Honda SIEL. Omax Auto added a new line at its Rewari (Haryana. Cummins USA. Investments In February 2007. Jai Bharat Maruti. tubular welded components. Piaggio Italia. muffler. Enforcement Directorate (Operations) Naresh Tandon. The company manufactures more than 500 components at its seven facilities across India. Gurgaon (Haryana) (4). trunk hinge. accounting for 60 . The company expects to derive 15% of its sales from exports by 2008-09. steering column shaft. seat parts. Tenneco Automotive – Belgium . In terms of sales. rocker arm shafts. Mitsuba Sical Ltd. 5/13.000 units per annum In 2005-06. Omax Auto announced an INR1. Mahindra & Mahindra. Indian OEMs like Eicher Motors. electroplated tubular components. Gurgaon Sohna Road Village Tikri Gurgaon – 122 001 Haryana India Omax is one of the largest manufacturers of sprockets for motorcycles in India. carrier. Starting in 2003. India) facility meant to cater to the needs of South based customers. and Sundram Clayton Ltd. MIG welding wire. steering handle assembly. Omax Auto commenced production at its Bangalore (Karnataka. tubular and machined components for the automotive industry and is pursuing a strategy under which the company has chosen to beat the pressure on margins through improvement in product mix in favour of high value products and exports.83m. moped parts. precise machined components and sprockets Address Omax Auto Limited Automax. Omax auto’s clients comprise of North American vendors like Amtech International USA. chain case. half shaft bars. Maruti Udyog. Enforcement Directorate (Finance) Products Axle bars. Chairman Jatendar Mehta. the company has been able to make some breakthrough in this regard by adding certain European and South East Asian clients. Carraro Spa. back plates for brake shoes. 31 March 2008) © SupplierBusiness Ltd 2009 238 . India – Nippon. Lucas – TVS. the company ranks as one of the ten largest automotive suppliers in India. door beams. transmission shafts. Roulunds Braking. neck fuel filler. In October 2004. 31 March 2005). base battery set.The Indian Supplier Report Omax Auto Sheet metal components. Tel: +91 124 2219060 Fax: +91 124 2219169 Internet: http://www. gear shafts. oil pump assembly. seat adjuster. Hero Honda. New Holland Tractors India. TVS Motors. silencers.14bn (€ 112. India) facility to supply to Hero Honda’s new scooter program at a capital cost of INR160m (€2. Denso India.14m. body frames.87m.0bn (€ 17. The company is aggressively tapping the export markets to de-risk its business. 31 March 2008) investment in a new facility for supplying chassis to Tata Motors for its commercial vehicles. TVS Motors. Majestic Auto. The company commenced supplies in 2008 as a single source supplier for various commercial vehicle programs with an installed capacity of 100. sprockets. rocker arm shaft. Rewari (Haryana) (3) Sales INR 7. Omax manufactures several assemblies for Maruti Udyog like panel side body.7m (€ 0.32m. Czech Republic in a deal worth INR4. USA. Omax Auto supplied the first consignment of sheet metal parts to Rasmussen. In 2002. Omax Auto was listed by TVS Motors as a supplier of complete frame assemblies for the TVS Star. 31 March 2005). Omax Auto commenced production at a rented facility in Binola (Gurgaon.33m.76m. further expansions were made on the plating capacity of the company making in the largest trinickle facility in the country and one of the large in Asia. Omax Auto started supplying sprockets to Supersprox. inner tubes and piston rods. cross member and sill floor side. 31 March 2005). India) as the green field is being prepared for operations. panel assembly cowl upper. Honda Motorcycle and Scooters India has appointed Omax Auto for the supplies of certain components to the Eterno and other models in the stable. Additionally. The deal was valued at INR156. Mahindra & Mahindra has selected Omax for the supplies of machined parts. The company has also been supplying back plates and brake shoes to Rolands braking. The company is also supplying piston rods to Delphi under a three year term. Germany. A capacity expansion worth INR 140m (€ 2. Omax Auto commenced the export of piston rods to Delphi. In October 2003.48m.83m. Omax Auto has been supplying sheet metal components to Atlantis Global according to an arrangement worth INR47m (€ 0.08m.95m.6m (€ 0. Also in 2004. 31 March 2005). The company has been producing chassis parts for LCVs like CanterMitsubishi The company has been awarded a contract for manufacturing engine plats for Cummins. Omax has concluded deals with Sundaram Clayton for the supplies of sheet metal assemblies for air braking systems. Haryana. The total capital outlay incurred at the new facility was INR160m (€2. Contracts In 2005. TVS is sourcing the supplies from Omax’s Bangalore unit. 31 March 2005). 31 March 2005). The deal was valued at INR131. In December 2003.000 parts per month which is to be hiked to 100. The entire contract was pegged at INR14.83m. USA and Europe with an initial volume of 80. The contract for the supplies is worth INR47m (€ 0. member floor. 31 March 2005). 31 March 2005) has also been planned for the facility.0m (€ 2.The Indian Supplier Report Employees c.6m (€ 2. Omax auto produces door beams for front and rear doors for the Maruti 800. 31 March 2005). Omax has converted the upcoming plant into an Export oriented Unit after the plant was selected for various supply programs and is expanding the tool room capacity at the facility.8m (€ 0. Omax Auto received three year export orders for tubular components from Tenneco. In 2003. 31 March 2005).26m.700 (2008) facility for sheet metal component production which began operations in August 2005. 3. Omax Auto has been manufacturing chain case and side cover for Hero Honda Motors. 31 March 2005) has been earmarked for further expansion of the facility in 2005. © SupplierBusiness Ltd 2009 239 . Omax Auto commenced the export of drive transmissions to Delphi. Also in 2005. Omax Auto expanded production capacity adding a modern paint shop manufactured by ABB. The parts being shipped include bar pins. In 2003-04. The company manufactures frame assembly installation and extension components for the Honda City.000 parts per month in due course of time. The company has been supplying several parts to Piaggio Italy according to a deal worth INR17. In January 2004. An additional sum of INR110m (€1. Omax Auto added a new facility in Manesar with an investment of over US$ 4m. Omax has tied-up with Delphi Automotive systems India to supply of axle bars.83m. Omax owns and operates India's largest 'computerised trinickle chrome plating plant' with a capacity of 10 million dm per month. Omax supplies ball pins for Tenneco Automotives. Omax supplies oil pumps assemblies for all models of Hero Honda. The company supplies various gear shafts and its sub assemblies for all models of the Maruti Suzuki Omax supplies various rocker arm shafts for all models of Maruti Suzuki. The company also houses three fully conveyer based paint shops. INR m 798. The company supplies piston rods for Delphi.32 10. Omax is the single source supplier for oil pump assemblies for all models in the Hero Honda stable.7 Profit Before Tax.37 Outlook Omax has registered a CAGR of nearly 40% over the past five years. welding SPM’s and robotic welding. The company manufactures the chassis for various motorcycle models of the Hero Honda stable.27 5.8 363.59 3. € m 12.7 264. The company also has production facilities for oil pump assemblies and subassemblies of two and four wheelers. Certifications Omax Auto has been accredited with ISO 9001 and TS 16949 status.3m (€4. 31 March 2008) compared to INR260. 31 March 2008).736.73m.895.40 5. € m 3. INR bn 7. Omax generated sales worth INR7.50 6. The presses are used for drawing.143. transmission shafts and sub assemblies for all models of Maruti Udyog. spot welding. a decrease of 38. sourced from ABB and Intech used primarily to paint motorcycle frames. Omax is the largest manufacturer of sprockets in India and a leading player in Asia with specific products for transmission and engine applications.powder and liquid coating.14%. INR m 161 260. 31 March 2007) in 2007.52 3.81 7.10 Operating Profit. Induction harding facilities for engine and transmission components.87m. INR m 235.54m.5% compared to previous year’s result of INR6.8m (€3.3 189.6 Net Profit. €m 2.6 Year 2008 2007 2006 2005 2004 Gross sales. The company houses India’s largest welding facilities with operations like MIG welding.297. The company also supplies sprocket for high power bikes for the European market. Infrastructure Omax houses one of India’s largest press facilities with hydraulic and power metal presses ranging from 10 ton to 400 ton capacities.97 Profit Before Tax.77 88.6 302.36 4.90 4. Tenneco and Arvin.785.1 304. 31 March 2008) an increase of 3.8 771 573 554.87 119.08m. The company registered profit before tax for the year under review at INR235.90 5.08 107.67 9. projection welding.8 180. down 35.05% year on year.3 426. Year 2008 2007 2006 2005 2004 Gross sales.62 13. which include gear shifter shafts.73 93.The Indian Supplier Report Omax also manufactures beam steering hanger for the Honda City.94 Net Profit.50m.14bn (€112. stamping and forming operations.47 Operating Profit. Financial Overview In the year ended 31 March 2008. Net profit for Omax Auto in the year reached INR161m (€2.54 4.50 3. sprockets and door beams. The © SupplierBusiness Ltd 2009 240 .2 202. 31 March 2007). €m 112.73 6.89bn (€119.67 5. Also the company’s key customer Hero Honda has been posting strong unit sales despite weakening economic scenario. © SupplierBusiness Ltd 2009 241 .The Indian Supplier Report company’s ambitious de-risking plan has made a strong start with the Tata Motors contact for supplying chassis on a single source basis. electronic hour meters. Deutz (Germany). Toyota Kirloskar. electronic road speed limiters. handle bar switches. engine monitoring systems. To this end. Avanashi Road. Corporate strategy In recent years Pricol has been swiftly building its international business with off-shore manufacturing setups in its core product streams. Askam (Turkey). Canada. oil pumps. pressure sensors. Denso holds 12. Pricol generated 18% of its sales through exports while two wheelers accounted for a 60% share of the domestic sales. Pricol formed a technical alliance with US based Directed Electronics Inc. Tata Motors. India Pricol is India’s largest manufacturers of automotive instruments. combination meters. Lister Petter (UK). Iveka (Germany) and Namad Awar (Iran). & Materials Recent Developments Products Ammeters. Senior Vice PresidentManufacturing Engg. data acquisition and control systems. electronic textile counters and controls. electronic road speed limiters. It began as a supplier of automotive instruments with an initial capacity of 400. Eicher Motors. mechanical and electrical temperature gauges. electronic RPM meters. Suzuki (Malaysia. Pricol Technologies formed a joint venture CarceranoPricoltech India Pvt Ltd with Italian firm Carcerano Srl.The Indian Supplier Report Pricol Instruments and instrument panels and other components Address Pricol Post Box No. Simplicity (USA). Piaggio (Italy). In 2007. Massey Ferguson (UK). Maruti. oil level switches. Pricol also sees global opportunity in the design field and logistics in the domestic market. Senior Vice PresidentProduct Development & Engg. Coimbatore – 641 037. a development that Pricol is preparing to counter with its aggressive technology build-up. Pricol was established in 1972 at Coimbatore (Tamil Nadu) and started commercial production in 1975. Parker Hannifin (UK). Egypt. Eaton (Brazil). data acquisition and control systems. TVS. John Deere (USA). Pricol has signed a number of technological tie-ups and added a number of products to its portfolio. 6331. Mexico. pressure switches. auto fuel cocks.000 dashboard instruments per annum. to provide complete range of design.pricol. Xenos Technologies Ltd. General ManagerBusiness Development K Janardhanan. General Motors India. AGCO (USA). BMC (Turkey). quartz hour counters. chain tensioners. & Production K Udhavakumar. precision machined components. South America. The company has won key contracts in both the global locations and domestic market. idle speed control valves. fuel gauges. Europe. fare meters. HVAC units and windshield washer motor kits. In 2007.com Senior Officers Vijay Mohan.. Pricol’s global plan includes offering products for non-high end cars where its partner Denso has a dominant presence. the company established an assembling unit in Gurgaon (Haryana) with an initial capacity of 500. mechanical speedometers. Hero Honda. disc brakes for two-wheelers. programmable electronic speedometers and tachometers. General ManagerBusiness Development D Raghunathan. Denso India. Jawa Moto (Czech Republic). Swaraj Mazda. Mahindra & Mahindra. mechanical and electrical pressure gauges. Turkey and the USA. gears & pinions. styling and product engineering to the Indian automotive industry. In the domestic market Pricol is expanding its second line of offerings. Visteon and Yamaha Motors. instrument clusters. In 2003. HVAC Units. Philippines and Thailand). In 1988. The company commands a 43% market share in the instrumentation segment. Its customers include Ashok Leyland. Chairman and CEO VG Ratnam. 1087-A. The company has set an objective of becoming the second largest supplier of instrument clusters globally. Sab Wabco (UK). quartz clocks. engine monitoring systems. chain tensioner assemblies. oil pumps for two-wheelers and industrial engines. Joint-ventures In January 2006. auto decompression units. General ManagerBusiness Development Vinod R Shankar. to manufacture and market advanced versions of vehicle security systems in India under a new company. fuel level sensors. © SupplierBusiness Ltd 2009 242 . Off late Pricol has been losing market share in instrument clusters to smaller players. Two more plants were added to Pricol's existing facility at Coimbatore in 1999 to rationalise its manufacturing activities. cigarette lighters. Pricol exports about 12% of its sales to Australia. The company is also looking at consolidating its business and making its plants self sufficient in terms of supply capability. oil level gauges. battery condition indicators. Tamil Nadu. Garrett Honeywell (France). mechanical RPM meters. Pricol exports to Derbi (Spain).5% equity in the company. Tel: +91 422 5336000 Fax: +91 422 5336299 Internet: http://www. Middle East. Honda Motorcycle & Scooter India. Pricol is targeting to generate 25% of its sales through exports by 2010. hub drives.000 instruments to serve its customers in North India. New Zealand. Bajaj Auto. Senior Vice PresidentBusiness Development Trevor Mendoza. Pricol also manufactures disc brakes for two wheelers. temperature sensors. Pricol commenced production at its second facility at Pant Nagar. senders. Also in 2007. In December 2006. speed sensors. Electronic tachograph: Pricol has been working on the development of an electronic tachograph which records the movement of the vehicles in the past 24hours.600 (2008) In January 2001.21m. (Year to 31. Pricol also has a technical assistance set-up with Toyoda Gosei for nitrile rubber floats for fuel sensors. a Coimbatore based Aluminium Die Casting and machining operation with two facilities in Coimbatore. Contracts In 2007. wind shield washer motor kits. Pricol has a technical alliance with Kojima Press Ind. Pricol won a 100% supply contract from Magyar Suzuki for the supply of instrument clusters to the Suzuki Splash program in Hungary with an order size of 140. Pricol commenced production of disc brakes. Pricol commissioned its first manufacturing facility at Pant Nagar to cater to Bajaj Auto at a capital cost of INR 200m (€3. Pricol exports speedometers to Suzuki. Also in 2007. Pricol announced that it would setup an office in Japan to facilitate the development activities with Japanese OEMs in conjunction with its R&D center in India. The reports generated by the systems can be used as a legal © SupplierBusiness Ltd 2009 243 . Pricol supplies instrumentation for Maruti vehicles.45m. Pricol is the sole supplier of MAP sensors to Maruti. Pune (1).000 units per annum. engine gas recirculation valve and lubrication oil pumps. analog type combination meters. The plant is expected to commence production by March 2008. Gurgaon (1). Pricol won a supply order from Toyota India for supplies to its small car program in India. Indonesia with a capital investment of INR 180m (€3. instruments. Pricol signed a seven year technical assistance deal with Denso for sensors for four-wheeler application. The plant manufactures 0. Pricol entered into eight-year collaboration with Denso (Japan) for technological assistance in vacuum switching valves. Pricol is presently developing crank position sensor. Pricol announced a joint venture with Nava Khodro for supplies for the production of instrument clusters in Iran for supplies to Saipa and Iran Khodro at a capital cost of INR 38. manifold absolute pressure sensors (MAPS) and speed sensors. Pricol has a joint-venture with Denso for instruments and components for automobiles with the exception of two-wheelers. cam position sensor.31m. Pricol has a technical tie-up with NHK Springs Japan for chain tensioners for two wheelers. In 2001. Investments In October 2007.08) Employees c.25m (€0.03. 4.. speed sensors. 30 April 2007) for supplying to local units of TVS Motors and Bajaj Auto and to Denso for its Phillipines and Thailand based plants. fail sensors. New Product Developments Pricol spends approximately 3. In June 2005. Also in 2007.The Indian Supplier Report sintered components.5% of its sales on research and development. Pricol completed the purchase of balance 30% shares in English Tools & Castings making it a fully owned subsidiary. In April 2007. In 2007.85m sets of instrument clusters to Bajaj & TVS while the balance is supplied to Denso. Ltd. 31 December 2006). The plant has an installed capacity of 1m sets of speedometers. Pricol acquired a 70% stake in English Tools & Castings. gear systems and oil pumps.66m. voltmeters. Co. Pricol commissioned a plant at Karawang. Further. The plant will have an installed capacity of 1m sets of instruments and field sensors for supplies to Tata Motors and Mahindra & Mahindra. warning lamps. 31 March 2007). speedometer cables. Japan for production of heater control devices for four-wheelers in the Toyota stable.06bn (€96. parts and components for Honda’s EK model car for India and C-2 type 45 degree angular speedometer movement for two wheelers. Plants Coimbatore (3). Pricol has a technical alliance with Nippon Seiki for the production of inner movement assembly for two wheeler instruments. Indonesia (1) Sales INR6. 31 March 2008). Thailand. Uttaranchal (2). The system can be fitted in all CVs and Off Road vehicles RSL: is a Micro-controller based Electronic device that constantly monitors the speed of the vehicle and governs the speed with in the set speed limit. The OBD generates trip sheets.10 10.33m (3.47 8.69 79.03 Gross sales. €m 3. stoppage report. The Vehicle Monitoring System can be fitted in all HCVs. last minute graph. Profit before tax decreased by 57. heavy braking report.52 2.75 89. maintenance schedules and keeps track of service history.31 100.31m.3% from INR362.83 4. 31 March 2007) in 2007 to INR190. Certificates Pricol has been accredited with ISO 14001 & TS 16949 certificates.43 909.33 508. The system records various parameters like speed.84 Year 2008 2007 2006 2005 2004 Year Profit before tax. Pricol has begun its international foray by establishing a plant in Iran and the ASEAN region. €m 13. € m 96. Net profit also plummeted by 47. Pricol has developed a fleet monitoring system that samples data data over a 20 day period.00 15.78m. by lubricating the vehicle automatically at the required points with the required quantity and moreover at required intervals. The company is also planning to launch the product for Indian markets. INRm 832. distance and time.75m.49 3.82 4.13m (€8.78 7.76 550.13 332. 31 March 2008).06 5.03 6. It is working towards the long term aim of being the second largest instrument cluster supplier globally.53 Net Profit.83 362. 31 March 2008) compared to INR508.81 151. over speeding report.29 Profit before tax.13m (€6.96 622.47 56. It views these as long term growth areas.03% to INR218.02 2008 2007 2006 2005 2004 Outlook Pricol has diversified its business into new and unrelated business segments such as logistics and designing. INRbn 6.03m.98 Net Profit.83m (€3.47m. Its large list of domestic customers spread across segments gives Pricol a steady market growth potential.83bn (€100. INRm 218.94% from INR5. 31 March 2007) in the financial year 2007. Vehicle Monitoring System: It is an on . a decrease of 3.60 Operating profit.88 424. The system is being developed by Pricol specifically for an overseas company which has a buyback arrangement with its Indian counterpart. MCVs & LCVs.03 16. Being closer to its international customers will Pricol enlarge its customer base while reducing its indirect tax liabilities. The government rules demand that tachographs be fitted to vehicles carrying hazardous material.99 11. Centralised Lubrication System: provides a solution to avoid manual error and increased costs.The Indian Supplier Report acknowledgment in the advent if an accident.20 7.53 807. 31 March 2008) in 2008. The device has application in commercial vehicles. Its traditional businesses are strong with a backing from segment leading technology partners such as Denso and customers such as Maruti with leading market shares. 31 March 2007) in the previous year. Pricol reported sales of INR6.22 17. heavy acceleration report.06bn (€96.5 984.25m m. Gross sales. Further the design business offers export potential which it plans to leverage. © SupplierBusiness Ltd 2009 244 .94 Operating profit. Financial Overview In the financial year ended 31 March 2008.board computer system that provides essential vehicle information for better fleet control. INRm 190. €m 3.25 6.13 428. In 2004. asbestos and non asbestos disc pads. RBL has a technical tie-up with TMD Friction. the company entered into an agreement with Laylock Engineering. General Manager. Chairman & Managing Director L Ganesh. Tata Motors. Joint-ventures Rane Brake Linings has a technical and financial tie-up with Nisshinbo Industries. RBL incurred expenses amounting to 1.67m. Under the agreement. Products Asbestos and non asbestos brake linings. RBL is the supplier to the Ford Ikon model. RBL commissioned a new asbestos free brake pad manufacturing facility for which the company has received interest from several OEMs to supply existing and new programs. Brakes India. Rane Brake Linings started the first phase of its new manufacturing unit at Trichy (Tamil Nadu. Investments In June 2008. 31 March 2005) from the sale. for production of railway brake blocks. Ceekay Daikin. Mauritius.03. RBL's customers include Amalgamations Repco. UK. UK. In 1982. railway brake blocks Plants India: Tamil Nadu (2). Divestment In 2005. Caterpillar. 31 March 2008) (Year to 31. Clutch Auto. India) to supply asbestos free brake pads to Maruti Suzuki.The Indian Supplier Report Rane Brake Linings Friction materials Address Rane Brake Linings Limited Plot No. Toyota . RBL sold its holding in Rane (Madras) Ltd as part of the restructuring drive initiated by the group. With technical assistance from Nisshinbo. 30 Ambattur Industrial Estate Chennai 600 053 Tamil Nadu Rane Brake Linings (RBL) is the largest manufacturer of friction materials in India. The company exports its products to Australia.6m. President V Krishnan. RBL was established in 1964 with a technical agreement with Small & Parkers. RBL has focused on exports to improve its margins. a GKN subsidiary to expand its range of clutch linings. RBL supplies brake linings to the Jordanian company and markets them in India.81bn (€28. Tel: +91 44 2625 0566/ 0766/ 1666/ 1766 Fax: +91 44 2625 0759/ 8883 Internet: http://www.9m (€1. Nisshinbo Industries (Japan) holds a 10% stake in the company. Pondicherry Sales INR1. Automotive Axles.6m. Marketing Recent Developments Corporate strategy In recent years. Andhra Pradesh. higher value added products to improve its margins which have been stressed due to higher input costs. Bangladesh. The company targets exports and domestic sales split of 15:85.ranebrakelinings. Vice President. Honda and Nissan. Kalyani Brakes. The latter holds 10% equity in the company. Vice Chairman PS Rao.08) Employees c. Middle East. Japan. RBL entered into an agreement with a Jordanian company for the production of brake linings. Contracts RBL has been appointed as a single source supplier for the Chevrolet Tavera. Currently.com Senior Officers L Lakshman. LuK India. Mando Brake Systems and Tatra Udyog.5% of total sales on research and development. Fiji. 950 (31 March 2008) New Product Developments During the financial year 2008. Built at an investment of INR250m (€3. 30 June 2008) the plant has an installed capacity of 2m disc pads per annum which is planned to be scaled up to 10m pads by 2013. © SupplierBusiness Ltd 2009 245 . It supplies to all the automotive segments from its four facilities based in the southern region of India. Japan. Sri Lanka and UK. Finance & Secretary S Badrinarayan. asbestos and non asbestos clutch facings. The company has intensified its focus on R&D and plans to supply new. RBL generated cash proceeds worth INR88. Israel. 92 Outlook RBL’s margins have shrunk rapidly due to higher input costs and the inability to pass on the cost to OEMs.73 1. € m 1. €m 28. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales. INR m 111.41 2. Drop in net profilt was attributed to increase in input costs and lower foreign exchange conversion rates. Financial Overview In the financial year ended 31 March 2008.03 29. significantly less compared to INR168.67 3.81 1.87m (€2.92 2.The Indian Supplier Report Certifications In 2003.796. RBL was awarded the coveted Deming award.386. 31 March 2007) in 2007.06m.23 1.95 212.577. 31 March 2007) in 2007. INR m 1.41m.71 25.95m (€1.77 5.38 2.83 156. Rane Brake Linings generated sales worth INR1.19 Net sales.57 Profit Before Tax.88 Net Profit. 31 March 2008) against previous year's sales of INR1.77m. € m 1.23 277.01 298. RBL has been accredited with ISO 9001 status.810.17 5. Net profit for the year was INR89.09 Net Profit.52 223.67m. decreasing by 47.3% as against INR212. € m 1.47 190.81bn (€28. 31 March 2008). 31 March 2008). The company plans to improve its exports as international OEMs are increasingly looking at lower cost base to safeguard their margins despite the current slump in demand.92m.396.79bn (€31. INR m 112.96 3.77 3.41m (€1.06 1.69 Profit Before Tax.6m.87 137.47m (€3.20 323.70 207. INR m 89.52 310.89 Operating Profit.37 Operating Profit.55 3. 31 March 2007).56 3.38 24. Profit before tax was reported at INR111.70 190. © SupplierBusiness Ltd 2009 246 .41 168.49 5.58 5.60 31. TRW (Europe and USA). TRW holds 10% equity in REVL. Wartsila Diesel and Wiscon (USA).John Deere. Maruti Udyog.58m. Hyundai Motor India. Mahindra & Mahindra. Vice President. and divested from its camshaft business and stakes in other group companies. engine valves. Level-5. Eicher Motors. Volkswagen (Germany). Lombardini (Italy). The company's domestic customers include Ashok Leyland. Rane Engine Valves derives 20% of its sales from exports. The company has secured two key supply contracts in Europe whiel negotiating on additional business from European customers. The company was established in 1959. REVL supplies to domestic customers including Ashok Leyland. Exports contribute nearly 50% of the company's sales. 5835 Peenya Industrial Area Peenya. MVI (Germany). No. Rane Engine Valves S Srinivasan. Escorts.com Senior Officers L Lakshman. Escorts Tractors. L&T. Maruti Udyog. REVL signed a technical alliance with TRW Automotive for a 10year period. Tel: +91 44 2815 3182-3 Fax: +91 44 2815 5626 Internet: http://www. REVL sold its camshafts manufacturing plant to Mahle Migma for INR180m (€3. Anmol Palani Post Box No. REVL has a technical collaboration with Bosch Automotive systems for production of clutch actuators in India. Force Motors.co. Tata Motors and TVS Motors. Cummins India.rane. 4964 88 GN Chetty Road T Nagar. Cummins India. KML has a technical collaboration with TRW for product and process technologies. The company was established in 1974. Bharat Earth Movers. Investments In March 2005 Rane Engine Valves set up an export oriented unit (EOU) at Products Engine valves. Rane Engine Valves Ltd (REVL): is a leading supplier of engine valves and clutch actuators. Its export customers are Deutz (Germany). Vice Chairman & Managing Director. 31 March 2008) Employees © SupplierBusiness Ltd 2009 247 . Karnataka (2).98bn (€31. REVL sold its holding in Rane Madras Ltd for INR29.karmobiles. 31 March 2004).13m (€0. Pielstick. In August 2003. Diesel Locomotive Works. Deputy General Manager. Mahindra & Mahindra. Tata Motors and VST Tillers Tractors. Chairman. Hero Honda Motors. Kar Mobiles Atul Arora. 31 August 2003). GM (USA). Hatz (Germany). President. To support exports. Rane Engine Valves B Swaminathan. Further. Joint-ventures In 1997. REVL has established a greenfield export oriented unit. Tamil Nadu (2) Sales INR1. MAN. Hindustan Motors. Tata Cummins. Lister Petter (UK). Vice Chairman and Managing Director. New Holland Tractors (UK). Chennai 600 017 India Rane is the second largest manufacturer of engine valves in India. Ruston.26.in Kar Mobiles Limited. Divestments In 2004. Rane Engine Valves L Ganesh. The company has a strong market presence in India through its large customer base and supplies to all major vehicle makers. Kar Mobiles has an international client base comprising Federal Mogul (USA). Finance L Ganesh. Rane Engine Products has increased its focus on its core area.35m. REVL and KML are focusing on the export market for engine valves.54m. Bangalore – 560 058 Karnataka Tel: +91 80 2839 4711-2 Fax: +91 80 2839 4713 Internet: http://www. Same Greaves Tractors.The Indian Supplier Report Rane Engine Valves Engine valves Address Rane Engine Valves Limited. clutch actuators Plants Andhra Pradesh (2). Kar Mobiles V Ramachandran. 1st Phase Post Box No. Chairman. It operates through two subsidiaries from seven plants based in southern India. Vege (Germany). Rane operates two subsidiaries: Kar Mobiles Ltd (KML): is the second largest manufacturer of engine valves in India producing 78m valves per annum. Marketing Recent Developments Corporate strategy In recent years. Mireless Blackstone (UK). 00 326.97 5. 31 March 2007). Rane Engine Valves reported sales of INR1.79 28. 31March 2007) in the same period last year.984. €m 0.38 2. 31 March 2008) in 2008 from INR208.98bn (€31.31m. 31 March 2005). it is likely to win new business and maintain its growth. © SupplierBusiness Ltd 2009 248 .78% over the previous year's sales of INR1. Net profit decreased by 83% to INR24. Kar Mobiles has been accredited with ISO 14001 and QS 9000 certifications.94 Profit Before Tax. INR m 188. REVL began supplies of engine valves to Yamaha (Taiwan and Thailand).8m.59 Net Profit.49 144.840.42 322.20 Operating Profit. Furthermore.13 317.13 1.63 5. 31 March 2008) from INR146. In March 2005 REVL announced its intention to expand the capacity of its existing facility from 30m units to 38m units at an investment of INR200m (€3. REVL signed a five-year supply contract with Germany-based Deutz.27 4. In 2003. INR m 41. € m 0. Certification In 2003. In June 2004. Profit before tax decreased by 80% to INR41.53m.69 2. 31 March 2007) in 2007.35m. INR m 24.91 Outlook Raw material prices have significantly hurt REVL and KML’s profits in the last five years.65m.35 31.90 1. The contract began in 2007 and is worth INR118m (€2.70 5. an increase of 7.66 Profit Before Tax. € m 2. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales. The shapr drop in earnings was attributed to higher cost of materials.49 Net sales. However the prices have now corrected and margins are expected to improve.79 29.61m.04 208.80 4.599.05 1.84 1.582. REVL is the sole supplier of engine valves to Deutz.25 241. REVL secured a supply contract for the VW Passat and a Seat model.38m. Rane is the product market leader in India and through its strong relationships with major domestic customers. 31 March 2008).402. 30 November 2005) per annum. ISO 14000 and TS 16949 certifications for all four production facilities.65 3. 31 March 2005) with a capacity of 5m units per annum.85 155.11 303.24 245.00 26. its exports business is developing to a significant proportion of its sales.The Indian Supplier Report Kar Mobiles: 565 (31 March 2008) Rane Engine Valves: 1.65 5.300 (31 March 2008) Visakhapatnam (Andhra Pradesh) with an investment of INR300m (€5. Financial Overview In the financial year ended 31 March 2008.73 Operating Profit.49m (€2.2m (€0.53 2.96m (€3. €m 31.72 Net Profit. Contracts In November 2005.2m.96 204. The contract was worth INR121m (€2.61 3. REVL has been accredited with QS 9000. The price increase of special steel used for valve production was steeper than that of ordinary steel leading to considerable pressure on margins.54m. INR m 1.95 2.20 146.84bn (€31. REVL won the Deming prize.60 166.4m 31 August 2003) and had doubled over the previous contract.04m (€0. Rasandik expects strong revenue growth with healthy margins. REIL expanded the capacity at its tool room facility in the Gurgaon (Haryana. Joint-ventures REIL has a technical collaboration with Yachio Industry Co (Japan) for fuel tank production. CAM design. India) (1). Uttar Pradesh (1) Sales INR 1. REIL signed a five-year MoU with Yarema Die & Engineering. India) plant by 100% to meet increasing demands from OEMs. Fiat India. REIL added sheet metal components to its product range. REIL added a press shop at its facility in Gurgaon (Haryana. Chairman Rajiv Kapoor.The Indian Supplier Report Rasandik Sheet metal components. suspension parts. The expansion was specifically carried out in areas of CAD. The company also supplies to the white goods sector. REIL acquired land for a proposed press shop and assembly facility in Pune. In 2005. 2005. sub-assemblies. General Manager. REIL supplies tailor welded blanks for the Maruti Suzuki Swift program.rasandik. Rasandik was incorporated in 1984 initially with the objective of localising production and supply of complicated toolings. Also in 2005. GM. Renault.110 057 Rasandik Engineering Industries (REIL) is a major supplier of sheet metal components and tooling to the automotive industry. tractor manufacturer New Holland. Honda SIEL. Senior Manager – Sales Arati Raina. Rasandik classifies its business under two heads: Sheet metal components. LCV manufacturer Swaraj Mazda. Contracts REIL supplies tailor welded blanks for the Maruti Suzuki SX4 program. India). The company also supplies press tools and dies to Tata Motors. tooling. TVS Motors and HMIL. Uniproducts. It is the first Indian supplier of tailor welded blanks in the domestic market. Being the sole vendor specialising in TWBs. Managing Director G Bhattacharya. dies. CNC manufacturing and assembly. fuel tanks. Senior Engineer. In May. GM India. 31 March 2008) Employees 601 (31 March 2008) © SupplierBusiness Ltd 2009 249 .com Senior Officers SC Kapoor. two-wheeler manufacturer HMIL. Investments In 2006. wish bone. Sonalika. assemblies and subassemblies and tools & dies Address Rasandik Engineering Industries India Limited 39. body parts. The TB welder of type LPQ3000 produces laser welded tailored blanks. HM. cross member Corporate strategy In recent year’s Rasandik has made heavy investments for setting up the first of its kind Tailor Welded Blank (TWBs) facility in India. Also in 2005. Paschimi Marg Vasant Vihar New Delhi. Rasandik expects Indian vehicles to use around 4 TWBs per unit by 2011. Plants Gurgaon (Haryana. REIL commissioned India’s first tailored blank welding system.89bn (€ 29. REIL was awarded the contract for supplies of body frames for the TVS Apache. In 2005. Fiat. ICM. exhaust systems. Tel: + 91 11 2614 9276.rear axle. which were largely imported by the automotive industry. Rasandik’s prospects are further propelled by the fact that both Maruti and Tata have initiated programs to reduce overall weight per vehicle and the use of TWBs could help them achieve around 25% reduction in weight for most compression bearing sheet metal components used in the body panel. assemblies and sub-assemblies Tools and dies REIL supplies to automotive OEMs like Maruti Suzuki. HM.Exports in charge VK Saxena.77 Fax: + 91 11 2615 9232 Internet: http://www. Passenger cars in developed markets use around 14 TWBs per vehicle. Renault.80m. locator shock absorber. Hero Motors. In 1986.Operations Products Recent Developments Assemblies. Honda SIEL. € m 1. robot MIG welding. conventional PWS’s. 31 March 2008). CED paint facility (salt spray upto 800 hrs). The company also supplies fuel tanks for the Maruti Alto. IT guns. 100x2.82 2.24 32.82 0. tool room with CNC machining centre.94 0. and 2x 200 ton.47 1.775. the facility has 160x2.9m (€ 1. REIL received fresh orders from Tata Motors for the production of press tools and dies. REIL received an order from TVS Motors for the production of press tools and dies.94m. 31 March 2007) in 2007.18 40. 400 ton.45 Net Profit. 2x 400 ton and 315 ton capacity. REIL received an order for tooling from Hero Motors.93 0. 125x2.01 Operating Profit.7 54.25 Net Profit. die spotting press and CMM.36m.89 Profit Before Tax. Also in 2004. INR m 59.62m (€ 0. INR m 196.89bn (€ 29. 63x2.66% compared to INR 32. Infrastructure Uttar Pradesh: The facility has press lines.80 30. a growth of 7. In case of Honda Siel the company is the sole supplier of beam assembly for the Honda City program. 200 ton and 120 ton.60 111. 31 March 2008) from INR 54.71 1. moving bolsters of 2500x 1700mm.76bn (€ 30. REIL also supplies to Honda Siel and Sonalika Tractors from the Gurgaon facility.886.56 0. The contract includes supplies of progressive dies. €m 3. Financial Overview In the financial year ended 31 March 2008. welding facilities like robot spot welding.242. 31 March 2007) in 2007. exhaust line and paint shop.71 1. Net profit for the year was INR 59. REIL generated sales worth INR 1. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 Net sales. water based flow coat line (salt spray up to 204 hours). weld shops.32 163.61 25. Additionally. Profit before tax grew over 110% to INR 114. fuel tank lines and paint shop.97 1. INR m 1. 2x500 ton and 2x 250 ton press lines. The facility has press lines of 630 ton. nut welding and stud welding. paint kitchen feeding 5 colours & clear coat. Gurgaon: REIL manufactures tools and dies at its Gurgaon facility. 800 ton. 630 ton. Maruti sources fuel tanks for the Omni from REIL’s Gurgaon facility. In April 2005.37 Profit Before Tax. INR m 114.62 78.31% compared to sales worth INR 1. REIL has a designing centre in Delhi. nut welding facilities. wet on wet coating paint system using hydro wash booths. REIL is the single source supplier of fuel tanks for the Maruti Omni program.11 2. 31 March 2007) in 2007.The Indian Supplier Report USA for the supply of supplier of press tools and dies from REIL’s Gurgaon facility. hydraulic presses of 300 ton.19 154.61m (€ 0.13 Net sales. The MoU has an extension period of 5 years. fuel tank lines. The facility is equipped with press lines.69 82.82m.61 49.84 Operating Profit. Versa and Wagon R.94 1. Certifications REIL has been accredited with ISO/TS 16949 and ISO 14001 status.94m.94m. weld shop. 31 March 2008).96 © SupplierBusiness Ltd 2009 250 . Additionally. integral transformer guns for assembly.36 33. The facility has press lines of 1200 ton. GM India and Fiat India.07 30. REIL supplies fuel tank for Honda Activa from Gurgaon. €m 29.757.25 1. €m 0.59 163.80m. powder coating for component sizes of 750x750x1750mm and CNC pipe bending facilities.24m (€0.9 54. In 2004.695. The Uttar Pradesh facility serves clients like Swaraj Mazda.87 2. an increase of 81. CAD/CAM facilities. paint shop equipped with spray pre-treatment with autodosing system. In all Rasandik is well poised to grow despite slower demand backed by better margins that the company can enjoy with its near monopoly with TWBs in India. particularly with Maruti where the technology is being widely adapted in the new programs after it was initiated on the Swift. © SupplierBusiness Ltd 2009 251 .The Indian Supplier Report 2004 23.47 Outlook Rasandik clearly enjoys a first mover advantage with TWB technology.75 0. Weight reduction programs initiated by OEMs will help Rasandik in gaining supply contracts to vehicle programs.20 2. more so for Rasandik as it had invested in a tooling facility four years ago with supplies dedicated towards export markets. Demand for tooling is expected to remain sluggish in the wake of the financial crunch.08 0. 400 067. Remsons’ customers consists of domestic OEM’s such as Ashok Leyland. In 2005. It also lost market share in the period. Force Motors. TVS and Yamaha.remsons. control cables. Hindustan Motors. Gurgaon .The Indian Supplier Report Remsons Auto control cables and gear shifters Address Remsons Industries Ltd. Marketing Manager Sher Singh. Government Industrial Estate. Remsons amalgamated group companies Daman Auto Industries Ltd. Orscheln had earlier divested its passenger car businesses in 1994 to Dura. Chairman Krishna Kejriwal. The company announced the closure of its brake shoe business at the facility while the automotive cable production was transferred to the Gurgaon plant. Remsons now focuses on high-value added services and components. Tata Motors. Remsons has a technical collaboration with Sila Holding Industriale – Italy for Sales INR 531. Managing Director Amolak Jhawar. Mumbai . Remsons Auto Engineers Ltd and Remsons Auto Industries Pvt Ltd into Remsons Industries. India Remsons Industries is the largest producer of automotive control cables in India. Hero Honda. The brake shoe business which was the company’s first diversification outside the cable business didn’t grow much.47m (€ 8.03. Remsons’ largest customer is Hero Honda contributing nearly 20% to sales of the company followed by Tata Motors with 15% and an export client accounting for 12% of the business. The company churns out 25 million pieces of cables annually and is amongst the largest players in the domestic market.08) Employees 550 (31 March 2008) © SupplierBusiness Ltd 2009 252 . Remsons supplier customers are Behr India.44m. Kandivli (West). The company has manufacturing setups at four locations in India of which are engaged in the production of auto cords and auto control cables. Previously the company had entered non-automotive electronics business but didn’t gain much from the exercise. The company diversified into production of electronic safety devices in 2000. LML. Besides the company is rationalising its production footprint where higher cost locations have been marked for producing higher value products. exports contribute 12% to its sales. Eicher. Remsons entered into a 40:60 joint venture agreement with US based Orscheln Products for manufacturing control cables at Remsons’ Daman plant for supplies to passenger cars in India and abroad. Remsons is particularly keen on supplying gear shifters equipped with push-pull cables and is eyeing the 50% market which still uses rod linkage based gear shifters. gear shift mechanism and speedometer cables Plants Daman. Joint-ventures In November 2007. Formed as Remsons Cables Pvt Ltd in 1971. Currently. 88B. The company has overcome the adverse period following labour unrests. The company plans to increase its marketing initiatives and target greater exports. moving away from the twowheeler cable business which was once its core business. Divestments In October 2005. and Subros. The partners had jointly committed INR100m in the form of capital investment for the joint-venture named Orschelm Remsons Technologies Pvt Ltd. Remsons targets the European market through Remsons Europe for various global orders. Royal Enfield.com Senior Officers V Harlalka. Mumbai (2) Recent Developments Increase in raw material prices kept the company from growing in the past few years. Director Products Body cables. 31 March 2008) (Year to 31. CEO (Mumbai Division) Sunil Mishra. Mahindra & Mahindra. Remsons approved the closure of its Pune unit. The company manufactures control cables for automotive and general engineering applications. while aftermarket accounts for 19% and the balance is generated through OEM sales. Tel: + 91 22 2868 3883 Fax: +91 22 2868 2487 Internet: http://www. Fiat India. the company went Public in 1986 and was rechristened Remsons Industries. Bajaj Auto. Kinetic Motor Company. Remsons received supply orders of gear shifters for the Piaggio Ape program. The company’s plan of focusing on niches is a viable way to ease margin pressures. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales.47m (€ 8. Brazil and South Africa.63 -41.18 -0. Remsons supplies gear shifters for the Fiat Palio/Siena/Petra in India.77 -38.49 0. Financial Overview In the financial year ended 31 March 2008. Remsons is gearing up to make a come back.20 0.37 Operating profit. Netherlands. Remsons has firmed up its export plans with certain contracts awarded recently that are strategically significant and might translate into much larger sales.23 409.94 Profit before tax.02 0. Supply program has been scheduled to begin in February 2006 with initial volumes of 3. EUR m -0.44 Net Profit. Italy.37 Profit before tax. Canada and Mexico for close to a decade. which is an indigenously developed substitute.66 7.63m (€ 0.06 -26. The company supplies to the Tata Indica Vista program.36 8. 31 March 2007) in 2007. EUR m -0. 31 March 2008). Remsons commenced supplies of parking brake safety cables under a two year contract to a major European commercial vehicle manufacturer. INR m 531. Singapore and Sri Lanka. Friction free cables help retard the engine earlier hence cutting fuel consumption. EUR m 0.47 501. EUR m 8.44m. The company registered an operating profit of INR 26.28 1. INR m -11.07 23.18m. Remsons Industries recorded net sales worth INR 531. Remsons is a lifetime supplier for the GM Hummer.27 0.03%. In September 2005. In 2004. INR m -12.01 0. Contracts Apart from contracts with Indian OEMs Remsons has been exporting cables to GM USA.63 8. Remsons accounts for 70% of cable requirements of the Tata Indica program.45m.71 0.49 0.44 8.92 -26. Remsons began supplying speedometer cables to Ashok Leyland. 31 March 2008) compared to a loss of INR 26. © SupplierBusiness Ltd 2009 253 .6 50.28 -0. 31 March 2008) compared to sales worth INR 501. For the third year in a row. In 2006.8 27. Nepal.51 10.19 Outlook Having lost a significant market share to its rivals. New Product Developments Remsons is accredited with developing friction free cables using polysil.45m.47m (€ 8. 31 March 2008).67 Net sales.23 Net Profit. Remsons accounts for 85% of Hero Honda’s requirement of control cables. Certifications Remsons has been accredited with ISO 9001 & ISO 9002 and QS 9000 status. The company supplys all cable requirements for the GM Chevrolet Tavera program.The Indian Supplier Report the production of the gear shifter mechanism with push-pull cables. INR m 17. Losses were largely attributed to slower than expected sales to new vehicle programs and increasing input and production costs. Now it is mandatory for all automobile manufacturers in the country to use friction free cables. UK.09 -10.69 -57. the company continued o post a net loss with 2008 losses totaling INR 11. Remsons also exports cables to countries like Belgium. registering a revenue growth of 6.500 units per month.09m (€ 0.45 -0.20 -1.00 -0.51 472.40 Operating profit.66m.09m (€ 0.71 -0.4 449. Continental and Jinfei Wheels of China. 5032200 Fax: +91 124 2824200. Ford and GM in the USA. In the last decade the company has expanded massively. Products Balance shaft assembly. Rico’s automotive components business now accounts for 100% of its sales after it divested its agro oils business. Magna Powertrain. Delhi-Jaipur highway Gurgaon 122001 Haryana India Tel: +91 124 2824000. To build new competencies in supplying components. Honda Motorcycles & Scooters India. turbo charger parts. Next. The company is considering acquisitions and alliances in this regard. DaimlerChrysler. Bajaj Auto. design & development centre. Managing Director Arun Kapur. transmission support bracket assembly. Land Rover and Jaguar. Rico has been forming new joint-ventures with global suppliers. brake panel assembly. Caterpillar. Honda SIEL Cars. Cummins.1% to sales in 2008). exhaust gas recirculating plate. The company is specifically eyeing more business from European and Japanese OEMs. Finance Rico Auto group is an integrated manufacturer of ferrous and aluminium automotive components and assemblies with four facilities located in North India. It supplies Caterpillar. FCC Rico supplies to Hero Honda Motors India. Rico Auto formed a 50:50 joint venture in India with Magna Powertrain. Maruti. Rico Auto’s customers in India include Delphi. 2824300 Internet: http://www. gear shift forks. lube oil filter head. discs &rotors. flywheel assembly. cam covers. Detroit Diesel. To increase its reach in the key markets of Europe and North America.05) Employees 3. water &air connections and wheel hub assembly Recent Developments Corporate strategy Since 2000 Rico Auto has focused on becoming a global supplier of choice. two-wheelers and system supplier customers.03.43bn (€22. Joint-ventures In October 2007. brake drums.9% to sales in 2008). rocker arm. main bearing caps. to manufacture oil and water pumps for the Indian Plants India (3) Sales INR6. Joint Managing Director OP Aggarwal. Honeywell. Rico exported components worth INR1. Suzuki Motorcycle. Ford. Ford North America. Chairman Arvind Kapur. front &rear cover. The company’s exports have seen an accelerated growth in recent times.The Indian Supplier Report Rico Auto Ferrous and aluminium components Address Rico Auto Industries Ltd 38km stone. It supplies to the passenger car. Company has increased its customer list globally and shown significant reduction in cost and increase in productivity and profitability. Executive Director. 31 March 2008).com Senior Officers Chandra Mohan. Rico has been selected as single source supplier of critical engine and transmission components and has begun supplies to Ford Europe. crank cases &cover. The Rico group consists of four companies. thermostat housing.039 (31 March 2005) © SupplierBusiness Ltd 2009 254 . oil pump assembly. Honeywell. Cummins. intake manifold cover. commercial vehicles. clutch assembly. company has established subsidiaries Rico Auto UK. Tata Cummins and Tata Motors. Hero Honda. cylinder head cover. it plans to establish presence in other low-cost countries by setting up manufacturing facilities in Thailand and China. the flagship Rico Auto Industries (contributing 74. In 2008. entered into the European and North American markets and set up software.86bn (€121. London (UK) and Rico Auto USA. Jaguar. Honda SIEL Cars. One example of its global forays is the long term strategic relationship with Ford as a key supplier of aluminium and ferrous components and assemblies. 31 March 2005) (Year to 31.ricoauto. valve cover.46m. FCC Rico Ltd (contributing 15. It has built operational excellence. front end auxiliary drive brackets. enhanced scale of operations and achieved cost competence while enhancing its engineering expertise to speed up development and launch time. The company is now aiming to achieve one billion dollar mark in sales by 2011.59m. engine brackets. Land Rover and Volvo in Europe and Komatsu-Cummins and Matusaka Engineering in Japan. Michigan (USA). fuel system parts. Rico Auto Industries Inc (USA) and Rico Auto Industries (UK) Ltd. The company now has joint-ventures with FCC. distributor case. Auburn Hills. exhaust system parts. steering knuckles. Yamaha Motors India and Rico Auto Industries. Honda Motorcycles and Scooters India. differential cases. Ideas.000 tonnes. FCC Rico has been granted ISO/TS 16949. Rico Auto applied for a fresh allotment of land in Manesar (Haryana) to increase supplies to HMSI and Maruti Suzuki. Of the 40m components manufactured by Rico Auto more than 60% are assemblies. OHSAS 18001 and ISO 14001 status. The foundry division in Gurgaon is accredited with ISO/TS 16949:2002 certification. 1.5 million units drum brakes and 500.000 tonnes. ProE. which will be made operational in two phases. Infrastructure Rico Auto employs over 1000 CNCs and SPMs in its facilities.000 ton capacity. Rico Auto has a dedicated CAD/CAM/CAE/ FEA/ CFD team equipped with applications such as Unigraphics. Catia. Certification Rico’s HPDC facility located in Dharuhera is ISO/TS 16949: 2002 certified. Investments In 2008. In 2005. C3P. Divestments On April 2004. Rico entered into a 50:50 joint-venture with Continental to manufacture hydraulic brake systems. the two companies will set up a plant in Gurgaon. Rico invested in 25 acres industrial land near Chennai for a future facility. ANSYS. 31 March 2004) towards capital expenditure and capital work-in-progress. The company has 70 High Pressure Die-Casting machines with locking force in the range of 135-1800 tonnes. It also supplies clutch assemblies to Bajaj Auto and Hero Honda. Vericut.5% stake in the joint-venture and will start supplies in FY2010. © SupplierBusiness Ltd 2009 255 .29bn (€40. Rico Auto has two DISA and one SINTO moulding lines with 50. Under the joint-venture.000 units of load sensing proportioning valves. Rico Auto invested INR620m (€11. Magmasoft. To manufacture aluminium alloy wheels for motorcycles. 31 March 2005) owing to single source supplies to Honda Motorcycles and Scooters India and Honda SIEL Cars. For the purpose higher tonnage die-casting machines were installed. Rico Auto signed a joint-venture agreement with Zhejiang Jinfei Wheels Ltd. In May 2007. The company manufactures most of its dies and patterns in-house. Capital expenditure including doubling of its ferrous and aluminium castings capacities and widening its product range and capabilities. additional land was acquired in Bangalore to serve the OEMs and Tier I suppliers in Southern India and international markets. Also in 2005. beginning early 2009.49m. with the first phase being made operational by end 2008.58m. Rico Auto divested its non-core agro division solvent extraction unit for a consideration of INR79m (€1. Rico has a 92. The company has 65 high pressure die-casting machines spanning a locking force of 135 tonnes to 1800 tonnes for Aluminium castings. Rico Auto’s 50-50 joint-venture with FCC Company Ltd (Japan) which manufactures clutch assemblies for two-wheelers and four-wheelers showed 52. The company has added three horizontal moulding lines with a total casting capacity of 30.53m. In June 2007.6% growth in sales to INR2.The Indian Supplier Report and European markets. The company has two disamatic vertical moulding lines with a casting capacity of over 40. GT Suite and MSC Fatigue. The company has in-house R&D capabilities. The plant will have an annual capacity to produce one million units of brake actuation and two million units of brake calipers. In 2004. Rico’s second HPDC facility in Gurgaon is also ISO/TS 16949:2002 certified. 30 April 2004) to Adani Wilmer Ltd. 000 balance shafts were supplied to Ford Financial Overview Rico Group net sales for financial year ended 31 March 2008 were INR8. Rico scaled up volumes derived from existing domestic OEMs Hero Honda. 31 March 2008).000 cylinder head covers were supplied to Maruti.000 oil pump assemblies and 60.000 crank cases and 95. the Indian market will manage better than other global markets and Rico stands to benefit from that.6m (€1.7m.The Indian Supplier Report The company has ISO 14001 and OHSAS 18001 certification. In 2004. Contracts In the financial year 2005.4m units.000 lubricant oil filter heads to Cummins.000 brackets to both Jaguar and Land Rover.51m. Rico Auto supplied 200.35m. © SupplierBusiness Ltd 2009 256 . Net Profit of INR222m (€3. 31 December 2008). 1. 31 September 2007) in the nine months ended 31 December 2007. The company has a large exposure to ford and any further weakness in North American market will adversely affect Rico too. 31 March 2008) in 2008 over INR947m (€16. the last one year has been challenging due to the weakness in US Dollar and the increase in commodity prices. Profit before tax for the period was reported at INR115. however. 31 December 2007) in the last financial year. 31 December 2007) in the previous year.28m.30m (€1. However.4m. even with a slowdown. 450. Maruti Suzuki.57% compared to INR192. In 2004. In 2004. supplies of clutch assemblies to Hero Honda were 2.000 exhaust manifolds.75bn (€81. Volume of wheel hub and brake panel assemblies totalled 10m units. Net profits declined by 33.46m. Rico exported 25. 31 March 2007) profit before tax earned in 2007.06bn (€69.30m (€2. In the same period it supplied a combined volume of 200.27bn (€130. FCC Rico has been awarded supply contracts by Suzuki Motorcycle India. 110. the company has to face a slowdown in the Indian industry. In 2004.83m. 31 December 2008) in 2008 over INR149. Profit before tax recorded a growth of 19. Delphi sourced 150. In 2004. Under the ferrous product range 250.000 steering knuckles were supplied to Maruti. 31 March 2008) in 2008.56m. In 2004. Rico has implemented SAP. In the first nine months ended 31 December 2008.8% to INR1012m (€15. Rico Auto posted net sales of INR4.72m.000 case differential housings and about 250.80m (€3.2m rotors & brake drums. falling 6.000 units of tunnel closure housing to Land Rover.8m.84% over INR8. Six Sigma and TPM initiatives across its facilities. 31 December 2008). On the domestic front. 250. 31 March 2007) in 2007.000 gear shift covers to Honda Motorcycles and Scooters India.3% to INR99.6% to INR258m (€4.000 flywheels.88bn (€153. under the aluminium products a total of 500.000 of exhaust manifolds from Rico’s ferrous product range. decreased by 13. a decrease of 39.99m. Rico supplied 400. a growth of 17% compared to INR4. HMSI and Tata Cummins. In 2004. Outlook Rico Auto has had a strong growth period in the recent past.99m. 31 March 2007) in 2007. 01m. Pune 411 026. Net loss decreased to INR1. The company also has interests in high performance materials. 31 December 2007). Atul Glass Group originally promoted the company with supplies to Tata Motors. Contracts In December 2004. A greenfield facility was added at Pune in 1994. 31 December 2007) in 2007. Pune (Maharashtra) (2) Recent Developments Corporate strategy In the recent years. 28 February 2006) in the new plant. Bhosari Industrial Area.31m. 31 December 2006) in 2006. Going forward the company plans to grow its business in the country to ensure its capacity is utilized.co. In 1993.The Indian Supplier Report Saint Gobain Group Automotive Safety Glass Address Saint-Gobain Sekurit India Limited.31m. Force Motors. Tata Motors and Toyota Kirloskar Motors. The new facility has an installed capacity of 1m car sets per annum. © SupplierBusiness Ltd 2009 257 . Saint Gobain. 31 December 2006) in 2006. Bajaj Auto. India Saint-Gobain is the second largest supplier of automotive glass in India with a 13% market share. Chairman D Philibert.1m (€11. Tel: +91 20 712 0047 Fax: +91 20 712 07770 Internet: http://www. increasing almost five fold compared to INR76. a decrease of 4. Marketing Products Laminated and toughened automotive safety glass Plants Chennai (Tamil Nadu) . Head. Saint-Gobain Sekurit India Ltd: It supplies automotive glass from its two plants in Pune (Maharashtra). Certifications Both facilities run by Saint Gobain Sekurit are QS 9000 certified.97m (€12.09m (€11.Gobain Sekurit registered sales worth INR670.13% compared to sales of INR698. the company has brought in capital from its parent to invest in capacity expansions in India.3m (€1. Sales INR670. T-94/95 MIDC. Its new plant based near Chennai has won business from Hyundai. India) plant.55m. Investments In February 2006. Operating profit was reported at INR76. Fiat India.02m.in Senior Officers AY Mahajan. 31 December 2007) Employees c. 31 December 2007) from INR105. The company made an investment of INR14bn (€266.saint-gobain. Piaggio. India). Hindustan Motors and Force Motors. France wholly owns the company. The company was later brought under Saint Gobain. Reva Electric Cars. Saint-Gobain won a contract to supply Hyundai India.82. Saint-Gobain Glass India commenced operations at its new automotive glass facility in Sriperumbudur (Tamil Nadu. 320 (31 December 2007) Financial Overview In the financial year ended 31 December 2007. Eicher Motors.79m (€1.12m (€0. Ford India. Saint. 31 December 2007). Toyota and Mahindra-Renault. Saint Gobain's customers include Ashok Leyland.55m. Premier Automobiles.2m. The company supplies windshields to the Toyota Corolla model from its Pune (Maharashtra. Saint-Gobain is present in the Indian automotive safety glass market through two group companies: Saint-Gobain Glass India Ltd: It supplies float glass and automotive glass from its Sriperumbudur (Tamil Nadu) facility. France. Managing Director Atul Gambhir. the company entered into a jointventure with Saint Gobain Vitrage SA.3m (€1. 82 0.30 10. €m -0.95 1.09 2.44 48.19 Operating Profit. The company has contracts for low volume models hence its volume of supplies. Saint Gobain has made little progress in the market share.78 732.81 577.00 -0.97 833.64 63.31 0. INR m -1.09 698. INR m 670.22 2. © SupplierBusiness Ltd 2009 258 .81 Profit Before Tax.12 -105. €m 11.86 Gross sales. INR m -0.55 12. INR m 76. the company has remained a niche supplier.43 31.The Indian Supplier Report Year 2007 2006 2005 2004 2003 Year 2007 2006 2005 2004 2003 Gross sales.21 -49.79 46. € m 1.08 111.01 15.87 0.5 Net Profit.85 0.85 Outlook While the Indian automotive industry has grown substantially over the last five years.5 Profit Before Tax.17 103.63 12.06 0.86 0. € m 0.69 50.13 Operating Profit.44 121.3 13.03 1.55 Net Profit. Baring the exception of Hyundai Motors which derives significant volumes for Saint Gobain in India.14 51.02 -1. Tecumseh.USA and Derbi Nacional Motor SA – Spain. Samkrg’s offshore clients include Piaggio-Italy.08) Employees c. the company has been exploring offshore opportunities in Australia. Investments In fiscal 2004-05. Pydibhimavaram (1) (all three in AP) Sales INR 940. SDM Rao and the Andhra Pradesh Industrial Development Corporation. The company is pushing for a 40:30:30 breakup of sales between domestic OE consumption. Andhra Pradesh. Piston pins / Gudgeon Pins.The Indian Supplier Report Samkrg Pistons & Rings Pistons. Incorporated in 1985 in Andhra Pradesh by RJ Yata. North America. Hyderabad . Samkrg is also the sole supplier to LML. Despite the recent slump in domestic demand. Joint-ventures In its initial days Samkrg had entered into a six year collaboration with Taiwan based piston manufacturing company. Greaves. Honda Siel Power Products. The products of the company are well accepted in the domestic market as well as offshore markets. Cheng Shing Piston Company for technical expertise in production. The company has developed eight models of pistons for Piaggio-Italy and has started supplying pistons and piston rings to them for their two & threewheeler requirements. Samkrg Pistons & Rings limited (SPRL) has been concentrating of high value added and import substitution products to ensure healthy margins.samkrgpistonsandrings. 31 March 2005) for up gradation technical installations and for increasing capacity of pistons from 5m units to 6. Briggs & Straton.5m units per annum and piston rings from 12m to 16m units per annum. 31 March 2005) drive which requires the piston ring capacity to be pulled up further to 25m units per annum. Force Motors. Toto Pistons. Hero Group. Samkrg managed to maintain steady sales growth and managed to mitigate input price hikes by entering into a long-term contract with NALCO for the supply of high grade aluminum silicon supply. Kirloskar Oil Engine. Samkrg made investments worth INR188. rings and pins Address Samkrg pistons and rings. aftermarket and exports. SPRL supplies 45% of its production to the OEMs. Exports constituted around 29% to the total revenues in FY08. Bonthapally (1).500 016. Tel: +91 40 23732240 Fax: +91 40 23730216 Internet: http:// www.31m. This expansion was a part of an INR300m (€5.Japan. Kinetic. Majestic Auto and TVS Motors. Kinetic and meets 60% of Bajaj Auto’s needs. It supplies to the major domestic OEMs such as Bajaj Auto Limited. LML.France.5m (€3. Mahle ACL Piston productsAustralia. Divya Shakti Complex. The company produces pistons with a diameter range of 35mm to 120mm. Knorr Bremse. Honda Motorcycle & Scooters India. Italy.5m (€ 14. Contracts Samkrg is a single source supplier to the TVS Victor program. Ameerpet. 1-201. 7-1-58. CMD S Karunakaran. Vice President S Kishore. Piston Rings & Circlips Plants Arinama Akkicalasa (1). Birla Yamaha. India Samkrg Pistons & Rings is the leader in two-wheeler and three-wheeler piston segment with a combined 70% market share in the two segments.Operations Recent Developments Corporate Strategy In the recent years. Europe.37m. It has also commenced the supply of pistons and piston rings to Tecumshe- Products Pistons.12. The entire program shall be completed in 2006. 1.com Senior Officers SDM Rao. Samkrg Pistons & Rings Limited (SPRL) is a leading supplier of pistons and piston rings to OEMs.Europe.000 (2008) © SupplierBusiness Ltd 2009 259 . Spain. 31 March 2008) (Year to 31. Director. Japan and South Korea. The company has also developed 15 Pistons model for trucks and tractors for US based Reliance.86m. 35 Net Profit. Kirloskar Oil Engines and Force Motors. During 2007-08.05m (€1.87 3. INR m 940. Financial Overview During the financial year ended 31 March 2008.2 57.06 93.18 218. Samkrg spent 2. 31 March 2008). € m 0. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales. © SupplierBusiness Ltd 2009 260 . INR m 83.00 1.50 1.32 1.21m (€14.15 12.97m (€1.61 77.17 194.49 833. Hero Group.92 Profit before tax.75 Net Profit. Samkrg developed new products for Honda Siel Power Products. In 2007-08.92 1.67 92. Samkrg is planning to develop cooling gallery pistons for Diesel engines. SPRL has developed sophisticated piston assemblies to meet the requirements of complex emission norms of two-wheeler. Samrkg developed surface coating process of pistons for exports including molykote. Samkrg achieved a turnover of INR940.The Indian Supplier Report Europa for small four-stroke engines.91 1. a growth of 12. hard anodising facility for piston and rings.86 14.30% of its sales on research and development. The company has also developed steel piston ring conforming to DIN engines and JIS specifications in order to cater to the requirements of fourstroke motorcycles and two wheeler for TVS.5m (€14.66 Profit before tax.44 14.84 3. HMSI and ring carrier pistons for diesel trucks and tractors for exports.30 3. 31 March 2007) in 2007. Exports grew by 25% from INR84. €m 1.38 1.59m.87% compared to previous year’s result of INR883. €m 3. Birla Yamaha.55 Operating profit. 31 March 2007) in 2007. 31 March 2005) in 2005 there by accounting for a fourth of net sales.39 14.39m.22 1. 31 March 2008) in 2008 compared to INR92.62 3.59m.05 80. New Product Development During the current financial year.67m (€1. INR m 58. LML.50m.95 65.81 196.32m.83 Net sales.30 671. Also in 2004-05. However the availability of vehicle finance has been declining and is expected to impact sales across product segments.84 222.21 775. INR m 208. Kinetic Motor Company. ceramic coatings for pistons and rings. €m 14.59 1.81 108. Bajaj Auto.86m.13 Operating profit. four stroke scooters and motor cycles. Profit Before Tax was at INR83.02m (€3.8 69. 31 March 2004) in 2004 to INR198.67 799.30 Outlook The impact of the slowdown has had lesser impact on two wheeler sales thereby cushioning Samkrg from an otherwise turbulent scenario. 17% stake in Setco. Its international customers are Ace Mfg. In 1999. the company started supplying clutches for light commercial vehicles and in 1996. Managing Director S Vakil. Setco employs 500 people at its two plants.A. acquired 14. Tardeo Road. Nr. This has helped its sales grow eight times since 2000. Tennessee. 31 March 2008) (Year to 31. Setco acquired Lipe Clutch Division from Dana Corporation. its Kalol (Gujarat) plant started production of clutches for the automotive industry. In line with its strategy to aggressively enter the global markets.com Senior Officers Harish Sheth. In 2003.The Indian Supplier Report Setco Automotive Clutch and precision components Address Setco Automotive Ltd. The company's competitive advantage lies in its inhouse design capabilities. Joint ventures In February 2008. Setco Automotive UK at Haslingden.37m. In 2005. customer service. Technical Director Products Clutch & precision components like machined castings. Haldex and Lipe. Asia. through its wholly owned subsidiary. Setco Automotive was incorporated in 1982. Setco Automotive acquired US based manufacturing facility of Haldex through its subsidiary Setco Automotive N.19m (€3. Mahindra & Mahindra and Tata Motors. from passenger cars to commercial vehicles but has established its niche in the commercial vehicle sector. as Gujarat Setco Clutch Ltd. and stampings Recent Developments Corporate strategy Setco is a manufacturer of clutches of all sizes. Acquisitions In December 2006. Eicher Motors. Uttarakhand based plant. 550 (2008) © SupplierBusiness Ltd 2009 261 . turned parts. In 1992. During 2002. Setco formed a technical alliance with Lipe Clutch Division of UK. Divestments In December 2005. Setco sold 14. USA Sales INR2. GM. The company aims to expand its global business to 30 markets by 2010. Setco plans to use the funds to widen its global footprint. Investments Plants India (2). 31 December 2006). and global quality systems. The deal was structured as an asset purchase deal on an ongoing basis and was valued at INR216. Turkey and the Middle-East. In 1984. In December 2005. the company started exporting components to UK and US to other clutch manufacturers. China.03. 54-A. New Vernon Private Equity Ltd. Film Centre. forgings. Setco Automotive (UK) Ltd. COO Sudhir Anand. UK . The plant was setup under a joint-venture with FTE Germany. Executive Director Udit Sheth. Setco's domestic customers include Ashok Leyland. Setco Automotive commenced operations at its Haldwani. Eaton. Tel: +91 22 2352 0092 Fax: +91 22 2352 0754 Internet: http://www.17% of fresh equity to New Vernon Private Equity Ltd. Setco initiated conversion of clutches from organic friction linings to ceramic friction linings in India with Tata Motors. North America. Manager.1bn (€33. Setco exports to customers in Australia. Mumbai 400 043 Maharashtra India Setco Automotive is the largest manufacturer of clutches for medium & heavy commercial vehicles in India and a market leader in this segment. UK.08) Employees c.71m. International Business & Corporate Affairs KB Patel. north of Manchester (UK) and the second in Kalol. USA. Inc in Paris. it became the largest manufacturer of clutches for medium and heavy commercial vehicles in India and in 2005 Setco acquired Lipe Clutch Division (UK) from Dana Corporation (USA). Setco acquired Lipe Clutch Division of Dana Corporation in 2005 and a Haldex unit in US in 2006.setcoclutch. district of Panchmahal (Gujarat). Setco Automotive announced plans of setting up a greenfield manufacturing facility near Pune for the production of clutches and components.26 2. 31 March 2007) during 2007. compared to INR161.33m.4 161. 31 March 2007) during the financial year 2007.10 Net Profit. compared to INR114. Also in 2007. 31 March 2007) during 2007. 31 March 2008) for the period. EUR m 2008 33.50 24. INR bn 2.1bn (€33. 31 March 2008). Setco is the sole supplier to the requirement of Eicher Motors.8m (€2. © SupplierBusiness Ltd 2009 262 .26m.16 1.33m.42 1. Setco Automotive announced a capacity expansion at its Gujarat based unit at an expense of INR130m (€2. Financial Overview In the twelve months period ended 31 March 2008.8 114. Year Net sales. 31 March 2006) in 2006. In 2006. its pre tax earnings for the period were INR205. EUR m Operating Net profit.60 100. Setco won a contract from Ashok Leyland to supply 330mm. Lipe brings its internationally known brand along with design.33 Net Profit. technology and quality. Similarly.60 Profit before tax.45 Outlook Setco plans to increase its presence beyond the countries where it currently exports its clutches by leveraging its high quality levels and effective pricing of products. Produced at low cost in India.23bn (€21.32m.37 2007 21.The Indian Supplier Report In 2007.00 71.67 Operating profit. In 2005.33 3. Net profit amounted to INR135.42m.2bn (€21.0m (€2. EUR m 3. 31 March 2007). Setco recorded net sales of INR2.37m. on an annualised basis. Contracts Setco supplies 90% of Tata Motors' requirements for heavy commercial vehicle clutches and 80% of medium commercial vehicle clutches in 330 mm and 352 mm diameter sizes. INR m 2008 2007 2006 * Year 135.87 * 9 month results ended 31 March 2006 2. 31 March 2007) in 2007.5m (€1. compared to INR1. INR m 228.98 0.40 Profit before tax. INR m 205. 31 March 2008).78 1.16m.10 1.23 0. The Lipe acquisition will be leveraged to expand its operations to over 30 countries by 2010.98m. Setco Automotive announced a capacity expansion at its Gujarat based unit at an expense of INR250m (€4.78m.4m (€3.95 2006 * 12. 352mm and 380mm diameter clutches. EUR m sales. The plant is scheduled to start end 2008 at an investment of INR1. Setco products are capable of a sustainable global presence. 73. SFN is concentrating on two markets.5bn (€23. Sigma and Freudenberg hold 50% equity each in SFN. Fiat and Tata. the company generated 60% of its revenues from automotive sales. Besides import substitution. The addition of Tata Nano’s supply will help the company in broadening its supply capabilities by adding engine seals with much larger volumes. the company has achieved significant market share in suspension and transmission seals segments. 200 (31 March 2008) Financial Overview In the financial year ended 31 March. SFN had an installed capacity to manufacture 7m seals per month in 2008. Tel: +91 172 5093 874.12. rubber metal bonded components. 31 March 2008) Outlook Despite SFN’s late entry in India. Ltd. transmission and suspension seals Address Sigma Freudenberg NOK Pvt. Industrial Area Sector . 2008. Executive Director Products Seals. The company plans to setup a second plant as the existing facility is close to reaching its 100% capacity. SFN’s customers include Mahindra. © SupplierBusiness Ltd 2009 263 . B-70. Munjal Showa. Previously these seals were imported from Freudenberg NOK’s international supply network. SFN started operations by supplying to programs where Freudenberg NOK had prior global association. Contracts SFN was awarded a single source contract to supply 10 types of engine and transmission seals for the Tata Nano project. Endurance. the company has cornered 75% market share for suspension seals – radial shaft seals. SFN generated estimated sales of INR1. The project is expected to generate revenues worth INR 250m for the company annually. 31 March 2008) (Year to 31.The Indian Supplier Report Sigma Freudenberg NOK Engine. 2237 770-72 Fax: +91 172 509 3876 Internet: http://www. boots and dampers. SFN is manufacturing seals for exports whose production is uncompetitive in Europe. SFN is registering a CAGR of 40% since it started operations in India in 2003. rubber and rubber metal bonded parts Recent Developments Corporate strategy A recent entrant in the India market.6m.7m. To achieve this. Plants Punjab Sales INR 1. The company also imports smaller volumes of seals from various SFN plants globally.160 055 Sigma Freudenberg NOK (SFN) is a joint-venture between Sigma Group and Freudenberg NOK. Gabriel.7m.08) Employees c. In 2008. SFN was incorporated in 2001 to supply automotive and industrial seals to Suzuki and other OEMs supported by Freudenberg NOK globally. Punjab . SFN manufactures over 170 types of seals and other rubber. Despite the short period of its presence in India. President RK Sud.sfnindia. Phase-VII Mohali. Daimler. seals for two-wheelers and vehicle engine and transmission applications. Suzuki Powertrain. The company has set a target of achieving sales of INR2bn (€31. Maruti Suzuki. 31 March 2008) by 2009.com Senior Officers Kabir Singh.5bn (€23. Its supplies around 60% of its sales to the automotive industry. Marina. 2008. a mix of domestic and traditional customers will balance SVIL sales and derisk its operations. bushes Plants Punjab (2) Sales INR850m (€13. Safari Dicor programs. Contracts SVIL is the sole supplier of engine mountings and bushings for the Tata Nano program. Operations Recent Developments Corporate strategy In recent years. Indigo. Mohali. This includes the Tata Nano program which will significantly increase SVIL’s revenues from Indian OEMs. By associating itself with production programs at an early stage. The company has developed close relationship with Tata Motors. Sumo Grande.43m. Indica Vista. SVIL was incorporated in 2001 as a joint-venture between Sigma Group and Pheonix.The Indian Supplier Report Sigma Vibracoustic Engine and transmission mountings Address Sigma Vibracoustic India Limited. Sigma and Freudenberg hold 50% equity each in the company. Industrial Area . 31 March 2008) by 2009. Currently. The company operates from two plants based in north India.munjalauto. Head. 31 March 2008) (Year to 31. 31 March 2008). Its customers include BMW. Financial Overview In the financial year ended 31 March. Outlook SVIL’s prospects are promising with the entry of Volkswagen and the scheduled production of Tata Nano in 2009. Mahindra. the company generated 80% of its revenues from exports. SVIL manufactures mountings and bushings for OEMs in India and Europe. Going forward. Tata Motors and Volkswagen. Ford. SVIL has largely focused on supplying the European vehicle programs to support Vibracoustic. GM.12. A-30 . SVIL developed engine mountings for the Tata Nano and Indica Vista programs. Punjab. Indigo CS. Phase VII . Products Engine and transmission mountings. Executive Director Sushil Gupta. SVIL is the sole supplier of engine mountings and bushings to the Tata Indica. SVIL develops and supplies mountings for most Tata programs. the company plans to gain greater penetration into local production programs.8m.08) Employees c. In 2008. Daimler. © SupplierBusiness Ltd 2009 264 .43m. 200 (31 March 2008) New Product Development In 2006-07. Maruti Suzuki.com Senior Officers Pradeep Randhawa. SVIL generated estimated sales of INR 850m (€ 13. Tel: +91 172 223 6311-13 Fax: +91 172-5090 694/ 2236 316 Internet: http://www. 160 055 Sigma Vibracoustic (SVIL) is a joint-venture between Sigma Group and Freudenberg NOK. SVIL has set a target of achieving sales of INR1bn (€15. India. linear motion products. © SupplierBusiness Ltd 2009 265 . 31 December 2007) Employees c. Bangalore (Karnataka) Sales INR15. SKF India's sister concern CR Seals India (Pvt) Ltd. Plants Pune (Maharashtra).com Senior Officers KC Mehra. VEC specializes in vibration and dynamics analysis. Tel: +91 022 56337777 Fax: +91 022 22818678 Internet: http://www. seals. The plant will begin operations in 2010. SKF Bearings India Ltd was renamed SKF India Ltd. the company derives most of its revenues from bearing sales increasingly the company plans to derive significant sales from other platforms. SKF India announced an investment of INR1. The company has recently bagged an order from Piaggio. The automotive industry accounts for more than a third of its sales. In 2005. SKF has scaled up its existing plants in Bangalore and Pune and announced two new manufacturing facilities. Europe and Honda Indonesia for the supply of solid oil ball cage bearings. SKF India operates through five engineering platforms. Automotive Business Unit & Pune Plant Products Bearings. mechatronics. special steel. SKF announced an investment of INR3bn (€53. The company supplies to all major automotive manufacturers in India. Finance Director Hemant Nighojkar. Managing Director Sune Axelsson. In November 2004. However. Tata and Hyundai accounted for the mass of sales to the passenger car OE segment.The Indian Supplier Report SKF India Bearings and sealing solutions Address SKF India Limited MGM Building Netaji Subhash Road Mumbai 400 002 India SKF India is part of the world's leading bearings and seals supplier SKF of Sweden. Tata Motors and Ashok Leyland accounted for a majority of the company’s business from commercial vehicle customers while Maruti. SKF started its operations in India in 1933. seals. 30 April 2007) to establish a greenfield ball bearing plant in Haridwar in the north of the country. Certifications Both plants of SKF India are accredited with QS 9000 and ISO 14001 certificates. To match the growth in demand. Chairman Rakesh Makhija. Investments In April 2007. the company supplies wheel hub bearing units. The company is a leader in the Indian bearing industry and it caters to the automotive.5bn (€27m. housing/sleeves & accessories. seals. In 2007. electrical and industrial sectors. SKF India opened a research and development centre in Bangalore (Karnataka). Additionally. spherical plain bearings Recent Developments Corporate strategy Buoyed by the growth in vehicle sales in India. Head. Also in 2007. provides sealing solutions. SKF India has an installed capacity of 71 million ball and roller bearings per annum.49m.22m. SKF’s wide acceptance by OEMs has lead to the its formidable presence. special automotive products and complete repair kits for the vehicle service market. SKF has managed to triple its total sales in the country.68bn (€270. taper roller bearings. lower sales have forced SKF to defer the opening of its Haridwar facility to 2010. 30 April 2007) to set up a new plant at Ahmadabad in Gujarat. At present. the company has consolidated its various operations into SKF India.skfindia. Over the years.150 (Year to 31 December 2007) New Product Developments SKF India has established SKF Application Development Centre for R&D activities in areas such as application engineering. SKF India acquired Vibration Engineers and Consultants Pvt Ltd (VEC). Acquisitions In 2005. 2. Contracts SKF India supplies McPherson strut bearing units for the Honda City and the Maruti Swift models. bearings/units. The company's main products are roller bearings and seals. services and lubrication systems. In order to further increase it presence in the passenger car segment.64 146. However.70 30.52m. 31 December 2006) in 2006. Both automotive segment and industrial segment contributed in the better performance of the company.30 506.01 9.69m.20 1. €m 42.42bn (€230.06 18.60 640. INR bn 2. € m 270. In January 2005.50 5.64 Outlook The relocation of Tata’s Nano plant to Gujarat has opened significant opportunities for SKF as volumes for the ultra low cost car will be significant. The centre will also carry out complex simulation exercises of their products.85 20. 31 December 2006) in 2006. 31 December 2007) as compared to INR13.90 Operating profit. €m 45. 31 December 2007) over INR1. SKF India announced the launch of "SKF Grease" for the automotive aftermarket in India.88 Net Profit. INR m 15. dirt.02bn (€17.90 5.93 14.09 14.30 820.00 13.30 Profit before tax. manufacturing of prototypes. INR m 1.90 7.47bn (€42.652. overall vehicle sales declined in 2008 forcing SKF to defer the commissioning of a new facility to 2010.813. SKF India launched a new wheel-bearing kit for the Maruti 800 model.62m. SKF India reported 16. Year Net sales.62 25.50bn (€25.49 8. Going forward.128. targeted at twowheeler racing enthusiasts.813.60 1. the company expects its margins to be affected by pricing pressures in 2008 and sales drop in 2009.00 Net Profit.071.683. The bearing is capable of enduring high speed. it plans to introduce similar kits for other cars. Financial Overview In the financial year ended 31 December 2007.019. 31 December 2007) as against INR1.70 566. testing and validation. In 2003. SKF India has developed a range of belt-tensioners. In February 2005.607.50 1.747.10 1.61bn (€27.10 4.30 863.The Indian Supplier Report product and system design.62% to INR1.68bn (€270. In January 2006.283.64m.90 1. SKF India introduced "ENDURO" bearings.40 1. extreme heat and humidity conditions.652.82% increase in net sales to INR15. SKF India introduced sealing solutions for the automotive aftermarket.40 Net sales.51 97.54 81.85m.504.41% to INR2. INR m 2. The company's pre-tax profit recorded an increase of 64.22 230.424. advanced calculation and simulation.52 12.56 Operating profit. Net profit improved by 57.39 Profit before tax.10 322. 31 December 2006) in 2006.03 24.69 17.473.22m. € m 2007 2006 2005 2004 2003 Year 2007 2006 2005 2004 2003 27. © SupplierBusiness Ltd 2009 266 . The company also has a technical alliance with Okamoto Kogyo Press Ltd for fuel tanks. Sona Steering. aluminised tubes. SKH Metals has also initiated talks for an alliance with tooling design and manufacturing firms. SKH Metals has a financial arrangement with Kusakabe Electrical & Mechanical Co. JCB UK. Fiat India.com Senior Officers Ashok Kapur. which brings the total to 70%. SKH Metals’s international client list consists of AMA spa. the joint venture with SKH Sheet Metal Components will focus on supplying exhaust systems to Tata and Fiat from a greenfield Pune based manufacturing facility. The company has added exhaust systems as a full-fledged product along with injection moulded components. by Krishna Maruti Group in 2005. sheet metal components and injection moulded components. exhaust systems. muffler guard. Earlier. SAME srl and Yanmar Cagiva. tool cost was amortized over a certain volume or was borne by the OEM. Bharat Seats. Hatz Germany. SKH derived 70% of its revenues from sales made to Maruti Suzuki. Krishna Maruti and Walker Exhaust India. the company’s recent tie-up with Magneti Marelli could prove significant in garnering major business in India with European OEMs particularly Fiat and Tata Motors with their increasingly stronger relationship in India. Joint-ventures In February 2008. The company’s earlier core business of fuel tanks has now expanded to include sheet metal components on a relatively larger base. As part of Maruti's cost-cutting strategy. SKH Metals was formed from the buyout of Mark Auto. SKH Metal’s strategy for growth is underpinned by key strategic alliances. International Tractors. Kusakabe Electrical holds 40% stake in the company. Chairman &Managing Director Products Axle housing. To this end. dies used for various components of new models are made in India.55m.R. The agreements were signed between Magneti Marelli and SKH Metals and SKH Sheet Metal Components. silencer front catalytic assembly suspension frames and under body components. Eicher Tractors. muffler with guard. SKH Metals signed two joint venture agreement with Magneti Marelli.The Indian Supplier Report SKH Metal Sheet metal components and assemblies Address SKH Metals Limited. JCB. Maruti Joint Venture Complex Gurgaon-122015 Haryana. the company used to supply exhaust systems and allied components as a Tier 2 to Mark Auto. fuel tanks.. Earlier. India SKH Metal is the most crucial of all component suppliers in the Maruti vendor park. The company hopes to secure access to both technology and business with a follow through source model. Mark Exhaust Systems. Gildorni. an area which. 31 March 2008) Employees c.25bn (€35. Lombardini India. engine mounting. Plot 2. While the joint venture with SKH Metals will design and manufacture exhaust systems for Maruti Suzuki and Suzuki Motor Corporation at a greenfield unit at Manesar. The company is now eyeing joint ventures for chassis systems. Recent Developments Corporate Following the acquisition of Mark Auto by Krishna Maruti Group. 600 (2008) © SupplierBusiness Ltd 2009 267 .skhmetals. Japan for stainless steel tubes. Krishna Boysan. In 2007. SKH Metals industries’ client list comprises of Arvin Exhaust India. Electrolux. Plants Gurgaon (2) Sales INR 2. O.M. till recently. Cost-cutting exercise has also helped in bringing active involvement of the company in designing dies and components. sheet metal components. Lombardini spa. srl. Delphi Automotive Systems. To this end. General Motors India. Maruti directly accounts for 45% of SKH Metals’s business while Indirectly it accounts for another 25% of its business. SKH Metals has made significant additions to its business prospects. was kept closed for most vendors. Italy for exhaust systems. Krishna Maruti holds a 50% stake in the company while most of the rest is held by Maruti. Caparo Maruti. Jay Bharat Maruti. Tel: +91 124 5017612-621 Fax: +91 124 2341317 Internet: http://www. which include Krishna Maruti. Being a privately-held company. 31 March 2008). SKH Metals Industries estimated sales were INR 2. Financial Overview In the financial year ending 31 March 2008. The company also supplies various stampings to other Maruti vendors.The Indian Supplier Report The company also shares an alliance with Futaba. The company should secure assured business from Maruti.55m. © SupplierBusiness Ltd 2009 268 . SKH Metals is the sole supplier of its components range for every Maruti model. Suzuki and Tata once the new facilities are commissioned. Caparo Maruti and Jay Bharat Maruti. The new businesses would account for a major share of business in the segments in the country as Tata and Maruti account for more than 60% of vehicle sales in India. Contracts With the exception of the Maruti Omni. SKH Metals does not publish detailed financials. Japan for suspension frames. Outlook Following the change in management.25bn (€35. SKH Metals has significantly remodeled its business model by adding new products and introducing strategic partnerships in its core product areas. SKH Metals also supplies tubes to Mark exhaust systems. The company has achieved preferred supplier status with Caterpillar in USA and is a sole supplier to multiple programs. the company is well positioned from sustained outsourcing of powertrain components from low cost locations. 31 March 2008). Spectra Group consists of four privately held companies which manufacture various valvetrain components. Spectra is exploring strategic tie-ups to gain access to technology and new product segments.12. Mehrauli Badarpur Road. Precision Engineering Works and Spectra Products. shafts. marketing Recent Developments Corporate strategy In recent years.com Senior Officers IC Agarwal. 2008. The group’s domestic clients include Tata Motors. Perfect Springs. Caterpillar (US). 31 March 2008) (Year to 31. Swaraj Mazda. the company will face challenges in achieving its targets. 400 (2008) Outlook Spectra Group has a considerable dependence on exports. Spectra Products derived 50% of its sales from exports. Ashok Leyland. TMTL. Employees c. New Delhi 110 068 India Spectra Group is a leading supplier of valvetrain components to commercial vehicle and diesel engine manufacturers.specpro. springs Plants Uttar Pradesh (4) Sales INR 500m (€7. The group supplies internationally to Perkins (UK). Tel: +91 120 270 1261. Piaggio and Mahindra International. Deutz (Germany) and Nissan(Japan). Case New Holland (UK). 120 275 5023 Internet: http://www. 286 6418 Fax: +91 11 2953 6784. In the long run. rocker assemblies. Anupam Apartments. Managing Director Sharad Aggarwal. In revenue terms. Kirloskar Oil Engines.90m. piston ring springs. Spectra Group generated estimated sales of INR 500m (€7. Lombardini India. the company targets sales worth INR3bn (€47. With the slowdown in international markets. Products Compression springs. In 2008.The Indian Supplier Report Spectra Group Valvetrain components Address Spectra Products Pvt Ltd 79. 31 March 2008) by 2013 and aims to achieve 40-50% of valve train supply requirement of Ashok Leyland. garter springs.90m. Eicher. Spectra Products formed a 50:50 joint-venture with Kasuya Seiko for manufacturing valve train and chassis components at a greenfield manufacturing facility which will start operations in 2010. push rods. Joint-ventures In June 2008. © SupplierBusiness Ltd 2009 269 . Spectra Products reached acquired market leadership for push-rods in India. International Tractors. As part of its growth strategy.4m. Head. The four companies include Ghaziabad Precision Products. Escorts.08) Financial Overview In the financial year ended 31 March. drivetrain. rack and pinion power steering.47% and rest of stake owned by Dr. SSLC has an installed capacity of three million ball joints per annum. Sona Okegawa Ghanshyam Dass. collapsible. MD. Besides its flagship company. M&M. Jacaranda Marg. It is a joint-venture between JTEKT. ASL primarily caters to Sona Koyo’s requirements for export of stamped parts to associates such as FAF. column assemble collapsible tilting. DLF City Phase II. JTEKT's 20. CMD Kiran Deshmukh. tilt and rigid steering columns for passenger vans and MUVs. The Group is a leading manufacturer of hydraulic power steering systems. Mahindra & Mahindra. MD.85%. carden joints. The company is a three-way joint-venture between Sona group. universal joints Sona Group also has interest in other companies such as: Sona Somic Lemforder Components (SSLC): Setup in 1995. re-circulating ball screw type gear assemblies. SCFL has an installed capacity of 900 tons per annum. rack and pinion manual steering. column assembly collapsible. Sona Cold Forgings (SCFL): SCFL was established in 1996 as a manufacturer of cold forged components used in gear box. engine. electrical systems. Sona Fuji Kiko Automotive: 51: 49 joint venture between Sona Koyo Steering Systems and Fuji Kiko for manufacturing C-EPS Steering columns. Tata Motors and Toyota. bevel gears. Mahindra Sona PK Virmani. Sona Koyo and Mitsubishi Materials Corporation (Japan). Ltd. Sona Cold Forgings TK Pal. DMD Atanyu Maitya. the entity has the following subsidiaries: AAM Sona Axle: is a 50:50 joint venture between American Axle & Manufacturing and Sona Koyo for manufacturing light truck. Haryana (2) SOPL: Haryana MSL: Maharashtra SSL: Haryana Sales INR 6. Eicher Tractors. Arjan Stampings: is joint venture between Sona Koyo Steering Systems Limited and Arjan Auto Pvt. manual rack and pinion steering systems. column assembly rigid. Sona Koyo. propeller shafts. seat belt mechanisms. with a facility in Gurgaon (Haryana).650 (2008) © SupplierBusiness Ltd 2009 270 . Surinder Kapur and persons acting in concert with him. Sona Okegawa Precision Forging Limited (SOPL): This subsidiary manufactures differential bevel gears for customers including Tata Motors. Surinder Kapur. Sona Koyo Steering Systems Ltd (SKSSL) is the group flagship which generates half the group sales. Japan. The major clients of the company are SKSSL. JTEKT and certain requirements for domestic market. Punjab Tractors. DLF Square. 31 March 2009) Employees SKSSL: c. Sona Koyo has a 58% share of Maruti's steering business and generates 50% of its sales from it. inner and outer parts of constant velocity joints. passenger car and SUV axle assemblies for the Indian market. Surinder Kapur.24m. spiders for steering. The company's major customers include Sona Koyo and Sona Somic and have developed components for TVS and Denso. Somic Ishikawa.The Indian Supplier Report Sona Koyo Steering Systems Steering systems and driveline products Address Sona Koyo Steering Systems Ltd.8% of the company equity including Maruti's 7.9bn (€101. Mahindra Sona (MSL): The Plants SKSSL: Tamil Nadu (1). Gurgaon 122002 Haryana Sona group is the largest manufacturer of steering systems in India with a 50% market share. fuel-injection systems and many other mechanical applications. steering systems. rear axle assemblies. Maruti Udyog and Dr. MD. The company's product range also extends to rear axle assemblies and propeller shafts. Sona Fuji Kiko Automotive supplies to group companies JTEKT Sona Automotive and global customers of JTEKT Corporation of Japan including Nissan and Toyota. MD. Vice-President JV Prabhu. and ZF Lemforder. Promoter owns 46. M Block. pinions. Maruti.sonagroup. 8th Floor. SSLC is a leading manufacturer of ball joints for steering systems and suspension components. valve tappets.com Senior Officers Dr. drive shafts. Tel: +91 124 5104641 Fax: +91 124 5104645 Internet: http://www.Sona Somic Lemforder Products Sona Koyo: Case differential assemblies. Sona Koyo announced a a 50:50 joint venture with American Axle & Manufacturing for manufacturing light truck.The Indian Supplier Report company makes propeller shafts. Sona Koyo serves three key export markets – USA through Sona Autocomp USA and Europe & Latin America through Fuji Autotech. Toyota Kirloskar Motors and international clients such as Koyo Steering USA. In the domestic market. Fuji Autotech was earlier acquired by Fuji Kiko. Sona Fuji Kiko Automotive was incorporated as a 51: 49 joint venture between Sona Koyo Steering Systems and Fuji Kiko for manufacturing C-EPS Steering columns. Arjan Stampings is a majority owned joint venture of Sona Koyo for meeting internal demand of stampings for its domestic and export supplies. The company supplies to group companies JTEKT Sona Automotive and global customers of JTEKT Corporation of Japan including Nissan and Toyota. In October 2007. San Motors. The company relies on integrating its production capabilities with supply chain requirements of JTEKT and Fuji Kiko. Acquisitions In October 2004. Maruti Udyog. GM. Keihin Panalfa. Mando Korea. Hindustan Motors. Sona Koyo is now adopting a two product strategy by promoting driveline products in its portfolio. Koyo Steering Thailand. Recent Developments Corporate strategy As a market leader in steering systems in India. Sona Somic Lemforder. The initiation of a joint venture with AAM was a critical step in this regard. Joint-Ventures In 2007. The company will commence production in November 2009. SKSSL has the option of increasing its stake to 30% in three years time. Hyundai Motors. This includes supplies of tier-II parts and sub-assemblies. Swaraj Mazda Tata Motors. Mahindra & Mahindra. Sona Koyo acquired 21% stake in Fuji Autotech France for INR285m (€4. The shifting of Nano’s production site from Singur to Sanand lead to intermediate losses as Tata Motors is expected to compensate the company. 87% of the company’s sales were attributed to steering systems and the balance were attributed to driveline products. © SupplierBusiness Ltd 2009 271 . The acquisition is a part of SKSSL's global expansion plans. among others. it has re-oriented its export strategy to match the change in the global economic scenario. axles and clutch assemblies for domestic and export markets from its plant in Nashik (Maharashtra). passenger car and SUV axle assemblies for the Indian market. Maval Manufacturing. Sona e-design: is the IT arm of the Sona group. Punjab Tractors. The company commenced operations in 2008 and is expected to reach optimum capacity unitization levels by March 2010. In 2009-09. Fuji Autotech posted sales worth €75m in the financial year ended 31 March 2004 and employs 360 people. Eicher tractors. While Sona Koyo posted lower than anticipated growth in its exports business compared to its previously stated 2010 target.5 million steering columns and a 16% market share in the steering column market. AAM Sona Axle will commence supplies of rear axles for Tata Motor’s light commercial vehicles in 2009. Denso India. The company is also promoting its indigenously developed products for off-highway and commercial vehicle markets in North America and Europe. 31 October 2004). The initiating of Nano’s commercial production has helped Sona Koyo in improving its capacity utilization levels at its Gurgaon and Dharuhera facilities which have been serving Tata on an interim basis till the Sanand facility is commissioned. Sona Group customers include Brakes India. an associate venture of JTEKT. Mitsubishi. Sona Koyo is expected to benefit from the Tata Nano production program.93m. Fuji Autotech is the fourth largest steering column manufacturer in Europe with a capacity of 2. Certifications In 2004. which holds 20.88m. © SupplierBusiness Ltd 2009 272 . Contracts Tata Nano Maruti Suzuki Swift Maruti Suzuki SX4 Mahindra Logan Mahindra Xylo In 2005. In 2003. In the same year. Mitsubishi Materials holds 30% equity in the company. Sona Koyo announced an investment of INR870m (€15. which was earlier a Mahindra & Mahindra company. The company is the single source supplier of case differentials to Tata Motors for all its models. SKSSL also has a technical collaboration with Mando Machinery Corporation (Korea). Sona Koyo supplies the hydraulic power steering system and column for the Hindustan Motor's Mitsubishi Lancer.The Indian Supplier Report In March 2006. Sona Group signed a research contract with Power Electronics of Siberia and Sibtehnomash for the development of products that provide car safety and fuel efficiency. The company developed and supplies hydraulic power steering and column assembly to the Mahindra Scorpio and Bolero models. SKSSL was awarded the Deming Prize in recognition of its quality practices.4m. Sona Koyo has a share of 65-70% in Maruti. ZF Lemforder holds 34% equity in the company while Somic Ishikawa holds 26%. The company supplies hydraulic power steering for the Maruti Esteem and rear axles and propeller shafts for the Maruti Omni. 31 March 2005) to increase manual steering gear capacity to over 1. Sona Koyo supplies recirculating ball steering to Swaraj Mazda and Eicher Motors. Somic Ishikawa holds 40% equity in the company while ZF Lemforder holds 26% equity in SSL. Sona Ogekawa has a technical and financial joint-venture with Mitsubishi Materials. 31 December 2003) from a European racing car manufacturer. the balance is held by Sona.97m. Sona Somic Lemforder has a technical and financial joint venture with Somic Ishikawa (Japan) and ZF Lemforder (Germany). Sona Koyo is providing the case assembly for the Maruti Swift. Sona Group entered into the partnership in 1996. Mahindra Sona is a joint-venture with Mahindra & Mahindra. a Korean company and a US-based tractor manufacturer. SKSSL has a technical and financial joint-venture with JTEKT (Japan). Sona Cold Forgings has a financial joint-venture with Somic Ishikawa (Japan) and ZF Lemforder (Germany).5% equity in the company.05 million units per annum and power steering capacity to 0. In the case differential business. 31 December 2003) from Koyo for supplies of 5% of its US plant business. SKSSL won a five-year contract worth US$35m (€27. the balance is held by Sona Group. The group supplies recirculating ball steering systems for the Omni and Gypsy.3 million units. SKSSL commenced supplies of manual steering gears to Mando USA. the company won another five-year contract worth US$10m (€7. Investments In 2005. The company is the supplier of recirculating ball steering and column assembly for the General Motors Chevrolet Tavera model. The company is accredited with ISO 9001 and QS 9000 certifications. The company also accounts for fifty-percent of the case differential assemblies for the Alto. SKSSL supplies rack and pinion steering systems and columns for all Maruti models except the Swift model. 31 March 2009) in 2009 as against an operating profit of INR443. an increase of 1.6 166. The company is expected to return to profitability with rapid localisation of imported aggregates and other cost-cutting measures adopted by the company. While global demand for Sona Koyo’s products is expected to remain stable.1 162. The net loss reported by the company stood at INR316.3 371. 31 March 2008) in fiscal 2008.03 2. €m 101.9m (€3.5 3629. The company will also commission three new facilities in 2009 catering to both domestic and export markets.919.79 3.4 253.98m.04 10.57 121. Sona Steering declared loss before tax of INR460.98 7.95 4.3 Profit before tax.57m.61 76.9% as against a net profit figure of INR248.72 4.20 7. Sona Steering posted net sales of INR6.24 108. 31 March 2009).95 Outlook The rapid decline commercial vehicle sales and production cuts by OEMs to flush inventory positions lead to Sona Koyo registering a loss for the first time in its history.74m. Sona Cold Forging is accredited with TS 16949 status. registering a decrease of 226.9 253.7 Net Profit.8m (€108. 31 March 2008) in the previous year.95m. The company reported an operating loss of INR135. © SupplierBusiness Ltd 2009 273 .20 64.4 Gross sales.3 410.4m (€7.94 390. Sona Somic Lemforder is accredited with ISO 9002 and QS 9000 status. when compared to net sales of INR6.62 3. 31 March 2008) in 2008.9 277.9m (€101.62m. In fiscal 2009.4 622.9m (€6.1 411.48 Net Profit.10 4.3m (€6. domestic sales would improve with a healthy 6-8% top line increase.24 Operating profit.74 7.5m (€1. INR m -135.2%.57 Profit before tax.95 6836.8 7041. INR m 6919.1 Operating profit.04m.0m (€4. € m -1.The Indian Supplier Report Mahindra Sona is accredited with ISO 9001 and QS 9000 status. 31 March 2009) in 2009.74 6. Sona Okegawa Precision Forgings is accredited with ISO 9002 and QS 9000 certifications. This was further aggravated by interim losses born by the company due to shifting of Tata Nano production site from Singur to Sanand where a new facility was being commissioned. € m -6.48 443.2m. Year 2009 2008 2007 2006 2005 Year 2009 2008 2007 2006 2005 Gross sales.836.66 6. INR m -460. 31 March 2009) as compared to profit before tax figure of INR390.6 4092. INR m -316 248. Financial Overview During fiscal 2009 (year ended 31 March 2009).24m. €m -4. 31 March 2008) in fiscal 2008. The Indian Supplier Report © SupplierBusiness Ltd 2009 274 . Tehsil Rajpur Patiala 140 401 Punjab India Steel Strips Wheels is a leading supplier of single piece steel wheel rims to the automotive industry in India with a market share of 50% in the passenger and utility vehicles sector in India. This move will help reduce transportation costs. General Motors India.com Senior Officers RK Garg. It plans to export 800. The company has set up a target of exporting 700. Further. SSW is setting up a production unit in Slovakia. For this purpose. for technology assistance and efficiency enhancement.5m wheel rims per year. At present Maruti accounts for 51% of the company’s sales followed by Tata Motors which accounts for 22%. Ford (Turkey) and Peugeot (France). Joint-ventures Steel Strips Wheels has a technical collaboration with Ring Tech. 31 March 2008) (Year to 31. Inbud (Poland). Mahindra & Mahindra. The company has established a 2m wheel rims per annum production base in Slovakia through a subsidiary.20m. The European unit will help offset haulage charges the company incurs on exports.03. The company exports to Kromag (Austria). At the same time however. tractors (3%) and the aftermarket.6bn (€41. Contracts In 2005.sswlindia.000 wheel rims for cars and MUVs in 2008. Maruti Udyog and Tata Motors.48m (€26. The alliance has been successful to the extent that SSW was able to reduce product design time by 30% and that of disc forming by 20%. Chandigarh (India). passenger cars. Japan for automotive wheel rims.4m to 7. Since 1997. Mahindra and Honda which account for &% and 5% of sales respectively. Tel: + 91 11 2687 8168 .The Indian Supplier Report Steel Strips Wheels Steel wheel rims Address Steel Strips Wheels Village Somalheri/ Lehli PO Dappar. Honda Siel Cars. Chairman Dheeraj Garg. Managing Director Products Steel wheel rims Recent Developments Corporate strategy SSW’s relationship with Maruti Suzuki has paid off as the company continues to enjoy healthy order books from the OEM. The investment increased its capacity from 2. 450 (2008) © SupplierBusiness Ltd 2009 275 . SSW is exploring possibilities of supplying its products to Europe. SSW supplies to Fiat India. Steel Strip Wheels began supply of wheels for Maruti Suzuki Swift. SSW announced investment of INR1. the company is successful in exports which have reached feasible volumes to warrant establishing a plant closer to the market. 31 March 2005) made to expand production capacity of its plant at Lalru. The balance comes from sales to Honda Scooters (10% of sales). The company has won the single source supply contract for the Honda Civic model.31m. Investments In April 2006. SSW’s dependence on MSL makes it vulnerable to the product life cycle declines of Maruti’s vehicles.08) Employees c. GM India has listed the company as the single source supplier to its T-200 program. The capacity will be later expanded to 5m rims per annum. utility vehicles and tractors. It supplies rims in the range of 10 to 30 inches diameter for scooters. Honda Motorcycles and Scooters India. Plants Punjab (1) Sales INR 2. SSW was established in 1985 and in 1997 signed collaboration with Kannai Motor Wheel Company. Australia and South Africa by the end of 2008.000 wheel rims in 2006. a part of the Sumitomo Group.70 Fax: + 91 11 2687 8166 Internet: http://www. the company has collaboration with Kannai Motor Wheel Company for technical assistance. 24 4.The Indian Supplier Report In June 2005.1 108.31 34.62 2.46 Net sales. INR m 496.985. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales. SSW is well poised as it has steadily added capacity while retaining its share of business with existing OEMs.7 140.573. Certifications The company has been accredited with ISO/TS 16949:2002 and ISO 14001:1996 status. Financial Overview In the financial year ended 31 March 2008.38 Profit Before Tax.66 3.90 5.93 1. Net profit for the financial year 2008 increased to INR 164.62 62.17 1.57 Net Profit.04% compared to INR 1.17 Outlook Strong growth in the passenger car and commercial vehicle production has triggered unprecedented capacity increase by SSW.69 829.49 Operating Profit.67 3. Germany.601.42 1. 31 March 2008) compared to INR 140.82% to INR 230.28 29.452.31m.6m (€3.31 25.4 281.77 146. 31 March 2007) in 2007.1m (€3. New Product Development Steel Strip Wheels has developed a new wheel for the three wheeler segment and is expecting a volume of 0. € m 41.7 84.88 6. Further.3 103.19 263. In 2005. © SupplierBusiness Ltd 2009 276 .6 199.44m. The entry of a new players in the segment continues to raise questions of sustainability as the capacity being floated is far in excess of the current demand and with the \ slump in auto sales in developed markets. INR m 164. the company has won prestigious export orders while improving its product through R&D.60 1. INR m 230. 31 March 2008).28m.2m units in the first year of production.2m (€ 34.91 122. €m 2. 31 March 2007) in 2007. Steel Strip Wheels generated sales worth INR 2.20 1.7m (€2. Steel Strip Wheels commenced trailer wheel supplies to JUST.6bn (€41. these units will find it difficult to produce at feasible capacity.66m.3m (€2.62m. The company has also been accredited with ISO 9002 and QS 9000.85 180. Steel Strip Wheels commenced car wheel supplies to Inbud Faro.52 Net Profit.03 2. € m 7.93 2.44 2. The wheels have been improved by a significant reduction in weight helping to increase vehicle performance and reduce overall cost of production. € m 3.50 1.82 Operating Profit. 31 March 2008) from INR199. Poland. Profit before tax grew 15. On its part. an increase of 31.71 15. INR bn 2.06 Profit Before Tax. 31 March 2007) in 2007.985.2 399.42m. 92 55. Denso India. Autoliv IFB. 20% from passenger cars and 14% from Tier-I suppliers. Certifications Sterling Fasteners has been accredited with ISO 14001 and ISO/TS 16949 certifications. The company’s domestic customer comprise Arvin Meritor.82 60.12 68. socket head cap screws. DLF Industrial Estate Faridabad.44m.52% compared to previous year's figures of INR 1.63 1. Sterling Tools recorded sales of INR1. hub nuts. 31 March 2008) compared to INR 68. In light of the increasing input costs and competition. weld nuts Plants Haryana (3) Sales INR1. 31 March 2008). decreasing by 5.03.92 201. two wheeler spindles/ wheel axles. 31 March 2008) and additional growth attributed to exports. Chairman Anil Aggarwal. Net profit in 2008 improved by 10.The Indian Supplier Report Sterling Tools Fasteners Address Sterling Tools Limited 5-A. Delphi Automotive Systems. Managing Director TN Thathachar.44m.44m.85 Net Profit. fly wheel nuts/ bolts.08) Employees 485 (2008) Financial Overview In the financial year ended 31 March 2008. INR m 76. cylinder head bolts/ screws. an increase of 11. Tel: +91 129 2270 621/ 2270 622 Fax: +91 129 227 7359 Internet: http://www. Sterling has revamped its product mix to counter the spike in input costs.21m.12m (€1.09 Profit before tax. Profit before tax in 2008 was INR 120.37 91. INR m 120. wheel studs Engine fasteners: balance weight bolts. Sterling Tools supplies engine fasteners to the Maruti Suzuki Swift program. International sales account for 5% of total revenues for the company.14% compared to INR108. to INR 76. Sterling Tools operates from three plants based in Faridabad (Haryana).33 165. 31 March 2007) in 2007.27 74. hub/wheel bolts.com Senior Officers ML Aggrawal.44%. To this end.92m (€1.121 003 Haryana India Sterling Tools is a leading supplier of engineered fasteners to OEMs and aftermarket in India.26 0. Year Gross sales. Ashok Leyland. Sona Koyo Steering Systems and Tata Motors.54 1.08m. Sterling Tools has widened its aftermarket presence to help offset margin pressures. studs.35 1.28 85.88 Operating profit. 31 March 2008) (Year to 31. INR bn 1.stlfasteners. Products Chassis fasteners: centre bolts. Company has three plants with a capacity of 600 million fasteners per annum.54bn (€24. Sterling Tools derives 28% of its sales from commercial vehicles. connecting rod bolts/ nuts.91m.54bn (€24. rivets. Sterling Tools supplies engine fasteners to the Tata Ace program.96 111.35 108.38 125. Sterling is increasing its focus on high value added engineered fasteners – a segment where it can leverage its role as a full service supplier. hexagonal head bolts. Maruti Udyog.19m. Vice President Uttam Gala. The company exports to Lemforder. Sterling has invested in new equipment and has reworked process flows. Sterling targets to generate 20% of its sales from international markets by 2010. Contracts Sterling Tools supplies chassis fasteners to the Maruti Suzuki Swift program. The company expects the cold forged high tensile fastener demand in India to grow by 15% per annum from the present INR13bn (€206.53 145.42 2008 2007 2006 2005 2004 © SupplierBusiness Ltd 2009 277 . suspension bolts. 31 March 2007).28m (€1. While the company has focused on OEM supplies in India. Hero Honda Motors. 31 March 2008). Honda Motorcycle & Scooter India. INR m 236. 31 March 2007). main bearing cap bolts Standard fasteners: hexagon nuts. Senior Manager Recent Developments Corporate strategy Sterling Tools is scaling capacity to service increased demand following growth in vehicles sales in India. propeller shaft bolts/nuts. it has been working on supplies to Tier-I customers in the international market.63bn (€28. Carraro India. General Motors India.35m (€1.87m. track shoe bolts/nuts. 27 16.93 2.72 Net Profit.32 1.03 1.60 1.13 2008 2007 2006 2005 2004 Outlook Over the next few years Sterling Tools intends to move up the value chain by adding higher yield products to its portfolio of fasteners for the automotive industry.87 1.44 28.71 2. An increased focus on international supplies will help Sterling Tools in adding a new revenue source while adding to the company’s full service supplier prospects. © SupplierBusiness Ltd 2009 278 .The Indian Supplier Report Year Gross sales. This will help increase its profit margins.10 22.34 Profit before tax.91 1.21 1. €m 24.76 3.45 Operating profit.08 25.97 1. €m 1.19 1. € m 1. € m 3.48 2. Assembly operations commenced in 1985 with a volume of 50. Currently Subros has a total installed capacity of 1m units per annum. The company now accounts for a majority in AC supplies to Tata. compressors. In 2006. Barakhamba Lane. General Manager. Subsequently the company entered into a technical collaboration agreement with Nippondenso initiated by Suzuki (Japan) for its Maruti project in India. Subros lost a Maruti supply contract to rival Sanden Vikas for the first time since its inception. Denso (Japan) and Suzuki (Japan). Honda Siel Cars India.000 units per annum. Tel: + 91 11 2341 4946 Fax: + 91 11 2341 4945 Internet: http://www. OEMs are willing to contract Subros to design and develop their systems. In terms of revenues. Subros has strategically aligned itself with the second largest OEM in India. CMD DM Reddy. evaporators. particularly in case of Tata where the company initiated substantial development work at its own facilities. 31 March 2008) (Year to 31.7m. heater. Subros manufactures automotive air-conditioning systems including swash-plate type compressor. In May 2004. cooling unit. CEO Pawan Sabharwal. hoses. Gurgaon.com Senior Officers Ramesh Suri. Subros supplies air conditioning systems and components to Denso Kirloskar Industries. clutches and other associated components for cars and light commercial vehicles in addition to providing design. compressor mounting bracket. During the next decade Subros embarked upon a program of sub-assembly procurement and localisation of components including in-house production of critical components. condensers. Hindustan Motors. Force Motors. The company has since reworked its strategy and is keen to ensure that its dominance in Maruti – the largest OEM in India – remains intact.08) Employees c. 1750 (2008) © SupplierBusiness Ltd 2009 279 .000 units by 2011. Chakan Sales INR6. Furthermore.The Indian Supplier Report Subros Air-conditioning systems Address Subros Limited. The company has also been nominated as a single source by Tata for the Eco car project being discussed by Thai government with various global OEMs. development and validation facilities to win such business. Maruti Udyog. Subros announced an investment of INR1bn to establish an assembly facility for air-conditioning systems for Tata Motors in Thailand for the Tata Xenon. Subros garnered 40% market share in 2008. The facility will initially supply 5.000 systems for the program which will be later be scaled up to 15.03. Denso transferred technology for MF condensers and 1 OS series compressors to the company. Subros was incorporated by the Suri Brothers and associates in 1985 for the production of automotive air-conditioning systems. Investments In August 2008. In an agreement signed in May 2000.63bn (€104.subroslimited. Subros’ supply relations with Maruti have remained healthy as the company continues to supply most Maruti programs. HVAC unit and tubes Recent Developments Corporate strategy In recent years. Subros announced new units at Manesar (Haryana) and Chakan Plants Noida (3). LGF World Trade Centre. On the other hand. Associate Vice President Products Blower unit. Reva Electric Car Company and Tata Motors. Tata Motors citing higher volumes that the OEM is expected to offer once the Tata Nano is launched commercially. New Delhi 110001 India Subros is the largest manufacturer of automotive condensers in India with a market share of about 44%. Tata Xenon. The company has an integrated setup producing the complete HVAC unit in-house. production services and training technical personnel of its OEM customers at its plants. In the commercial vehicle segment. Manesar. manufacturing. Subros has extended its supply footprint to Thailand where Tata is launching its pick-up. Subros has expanded its product design. Marketing & Service MK Puri. Maruti Udyog and Tata Motors are Subros' largest customers. Joint-ventures Subros is a three-way joint-venture between Suri Brothers. With HVAC fitment on the rise in the domestic vehicles. Versa. During 2005. blowers for Maruti Alto. In 2005. Subros developed and launched an AC system for Safari 10S13 compressor. The company commissioned a virtual product development center with CAD. Wagon R. Subros developed HVAC for Eicher Jumbo (HCV). 31 May 2004). Subros initiated feasibility studies for Maruti model L. Subros is working towards bringing second generation compressors to the domestic market. During the same year.7m. The company has also allowed OEMs such as Tata Motors and GM to test their products in this facility. During 2005. hoses and tubes for Maruti A-Star. evaporators for the Maruti Alto. heaters. Wagon R. Subros completed the design and development of AC components for the SAN Storm. In 2008 Subros began suppies for the Tata Indica Vista. The company supplies various components for other cars and some trucks in the Tata stable. tubes and hoses for the Maruti Alto and the Wagon R. The company was selected by Tata as the supplier of compressors for the Tata Safari and blowers. the company also manufactures various other components for other cars in the Maruti stable. hoses and tubes to TATRA under the first phase of its development program. Versa. Subros received a contract for HVAC system for Tata Indigo Marina. During 2005. RS evaporator and Variable Displacement Compressor which will help reduce power consumption. During the fiscal 2005. The plant in Manesar (Haryana) was completed in 2006 and serves Maruti Udyog. 31 March 2004). Versa. CAE and CFD capabilities. tubes and hoses for the Tata Indica. The installations.7m. New Product Developments Subros is developing products such as sub-cooled condensers. The company also manufactures heaters. Contracts Subros manufactures compressors for the Maruti Alto. the company commenced supply of condensers. Tata Motors approved the concept design of HVAC for proposed new modular truck. 31 May 2004). condensers. Wagon R. Besides. In 2005. Subros supplied 25 kits of compressors. Subros implemented Product Lifecycle Management techniques for efficient utilization of R&D data. Subros received a letter of intent from Ashok Leyland for the development of AC for G90 Cab. In 2004. Also in 2005.04m. CAM. SX4. Subros supplies components for A/C system and heater unit for the Reva Electric car. Also in 2005. compressors.The Indian Supplier Report (Maharashtra) at an investment estimated at INR1bn (€18. Subros is developing HVAC for a new MPV X2 on the Safari platform. Also in 2005. have helped the company curb prototype testing cost by 40-80%. which include a wind tunnel and calorimeter. Versa and Wagon R. In 2008. Subros undertook design and development and launch of AC system for TMCC 10S11 compressor. condensers for Maruti Alto. Infrastructure Squeeze & Vacuum pressure die casting machines Visual inspection robot Environment test chamber Compressor assembly line CNC Chipless cutter for tubes CNC machining center CAD/CAM/ CAE/ CFD facilities Wind tunnel and calorimeter testing facilities © SupplierBusiness Ltd 2009 280 . Subros announced opening of a R&D centre in its existing Noida (Uttar Pradesh) plant at an investment of INR200m (€3. The total initial investment made in the Manesar facilities amounted to INR370m (€6. The company reported 2% increase in net profit at INR290.57 8.80 400. Interestingly.65% in 2008 to INR410. Subros reported 2. 31 March 2007) in 2007.90 632. € m 4.22 2008 2007 2006 2005 2004 Year Profit before tax.65 2008 2007 2006 2005 2004 Outlook Subros has continued to maintain its market leadership by aligning itself selectively to the top two OEMs.4m (€4.49 6.71 111.80 753.02 11.4m (€4. INR m 290. Pre-tax profit increased by 2.627.00 4.38 13.40 440.30 225.59 91.00 193. INR m 6.20 104. INR m 410.77 9.8m (€6.90 5. Maruti Udyog and Tata Motors. Year Net sales. € bn 104.91 6.49m.42 2.30 6.63bn (€104.21 Net Profit.91 4.47bn (€111. 31 March 2008) as against INR284.58m.80 290.1m (€4. 31 March 2007) in 2007.923.64 3.53 5. the company has also been nominated by Tata Motors to follow its supply to its new Thai program.40 249.91m.473. © SupplierBusiness Ltd 2009 281 .00 Operating profit. 31 March 2007) in last year. 31 March 2008) from INR284. Tata’s selection for the project would bring Subros into the lucrative Thai market and mark its entry into the ASEAN region.10 Net Profit.30 Profit before tax.36% increase in net sales to INR6.7m.909.97 Operating profit.90 5. Thai government is working on an Eco car project for which Tata Motors and Toyota are seen as key contenders. Both OEMs have embarked on their growth plans with Maruti establishing India as a small car hub and Tata’s launch of the world’s first ultra low cost car. €m 6.10 540. € m 13.10 284.8m.The Indian Supplier Report Certifications Subros has been accredited with ISO 9002 and QS 9000 certifications.14 4.80 105.30 142.20 350. Toyota has a strong influence on the Thai market and the local establishment while Tata’s Nano platform has received praise from local strategists.649. 31 March 2008) as compared to INR6. INR m 846. Financial Overview In the financial year ended 31 March 2008.58 4.30 Gross sales.91m. In 1999. Sunbeam Auto. was formed as part of Hero Honda Motorcycles' vendor development strategy. Hero Puch. 31 March 2008) Employees c.25 kg. hubs. Munjal Showa. Today the company is a large supplier of castings and pistons to the automotive industry. Sunbeam Auto commissioned a piston manufacturing facility in Gurgaon (Haryana). Its pistons business has seen sharp growth starting with 0. hinges. cylinder heads and covers. Maruti Udyog. the company established Sunbeam Auto pistons with a capacity of 0. Sunbeam has established a strong R&D capability allowing it to grow in the aluminium die-cast components business. India Sunbeam Auto. cap crank bearings.2bn (€129. USA which is to be used for GM USA. low pressure die-castings and gravity die-casted components weighing between 10 grams to 6. Tel: +91 124 5129200 Fax: +91 124 5129751/ 52 Internet: http://www. formerly a unit of Highway Cycles Ltd. INR 8. Eralmetall (Germany).sunbeamauto. rocker arms.000 MT aluminium die cast components per annum. Certifications The company has been accredited with QS 9000 status. a part of the US$2.com Senior Officers Ashok Kumar Munjal. bottom cases. Robert Bosch (USA) and Visteon Powertrain Control Systems (USA). Sunbeam Auto Pistons. Hero Briggs & Stratton. Sunbeam supplies front and rear alternator housing to Visteon Powertrain Control Systems India on the basis of a long term arrangement. Plants Gurgaon (Haryana) Sales c. Hero Honda. 3. Managing Director PN Sandhu. Sunbeam's domestic customers include Denso India. It has a production capacity of 4m pistons per annum and supplies to both two and fourwheelers. The plant has an installed capacity of producing 2m pistons per annum. Delhi-Jaipur Highway.2bn Hero group. Senior Vice President. sliding tubes. caliper brakes.450 (31 March 2008) Contracts Sunbeam is developing throttle bodies for supply to Robert Bosch Corp. Sunbeam manufactures pistons of 40mm to 100mm diameter for both the two-wheeler and four-wheeler segments.M Stone. pistons. brake levers. The company's portfolio includes high pressure die-castings. The company entered the export market in 1998 and supplies to DaimlerChrysler (Germany). Sunbeam has also developed starter motor housing and diode plates for Visteon Powertrain USA. Narsingpur Gurgaon .The Indian Supplier Report Sunbeam Auto Aluminium die-castings Address Sunbeam Auto Ltd. cylinder blocks. Joint-ventures Sunbeam Auto has a technical collaboration with Honda Foundry Company Ltd (Japan) for its pistons unit.4m to a current 4m capacity in seven years. trager generator and transmission cases. This has naturally widened its customer base beyond twowheelers where it supplied solely to the Hero Group. © SupplierBusiness Ltd 2009 282 . The company supplies aluminium die-castings for two-wheelers and four-wheelers. Operations Products Alternator housing. motor trager links. Sona Koyo Steering Systems and Visteon Powertrain Control Systems India. Infrastructure Sunbeam has an installed capacity of 30. was established as an ancillary to Hero Honda Motorcycles in 1987 to develop import substitute components. crank cases and covers. seat benches.56m.4m pistons per annum that has been enhanced to around 4m currently.122 001. Investments In 1999. Recent Developments Corporate strategy Sunbeam’s entry into pistons has helped the company gain new ground by expanding into the four wheeler space from its traditional two wheeler base. Kinetic Motors. 38/6 K. clutch levers. The company is privately held and is not obliged to publish financial data. Outlook Sunbeam Auto’s growth is hinged to that of India's largest producer of two-wheelers. Financial Overview In the financial year ended 31 March 2008 Sunbeam Auto Ltd generated sales estimated at INR 8. Though exports do not form a major portion of revenues for the company at this moment.The Indian Supplier Report New Product Developments Sunbeam has developed the components of Hero Puch Motorcycles of 50cc and 65cc. Being involved in product development for its customers. © SupplierBusiness Ltd 2009 283 .56m. Hero Honda and with four-wheeler major Maruti Udyog. Sunbeam is able to add value and hence earn greater margins. its exports to large suppliers gives the company future prospects of increased business.2bn (€129. 31 March 2008). The company is prepared for the sales growth by adding production capacity. Executive Vice President. Tel: + 91 44 42205300 Fax: + 91 44 42205572 Internet: http://www. SBL has an established warehouse facility closer to its markets such as in North America. clutch facings. South African SABS 1506 requirements besides Indian IS 11852. Tamil Nadu – 600 050 India Sundaram Brake Linings is a subsidiary of the TVS Group of companies.94m. American FMVSS 121. It is rare. friction material for industrial applications. Exports Products Asbestos-free and asbestos based brake linings.89bn (€32. SBL also manufactures asbestos-free woven clutch facings. SBL’s strength lies in its R&D. The extent of its facility can be judged from its research centre being recognised in the friction materials industry. SBL products have been tested to meet European ECE-R90.1% over previous financial year. The company manufactures automotive. Scania+ and Volvo. for an auto component © SupplierBusiness Ltd 2009 284 . the company has leveraged India’s R&D skills and sought growth in the overseas market. disc brake pads. Australian ADR 35/38. 31 March 2007) in 2007. March 2008). Chairman & Managing Director R Ramasubramanian. President GR Chandramouli. disc pads.The Indian Supplier Report Sundaram Brake Linings Brake pads and parts Address Sundaram Brake Linings Ltd.74m.38m. Clearly. It largely exports to the commercial vehicles sector which has huge requirements for brake linings ensuring a regular demand for its products.08) New Product Developments Nearly 4% of the company sales are spent on research and development. Plants Tamil Nadu (3) Sales INR1. SBL has a strong presence in the domestic OEM market apart from serving the aftermarket through more than 140 TVS retail outlets spread across major towns. flexible rolls for automotive applications. 31 March 2008) (Year to 31. a slight decrease as compared to INR1. The Company is also ISO/TS 16949and ISO-14001 certified. The Company has three manufacturing plants with one dedicated exclusively to manufacturing asbestos-free brake linings. Since 45% of sales come from exports to 60 countries.1m (€2.58m (€1. clutch linings. Recent Developments Corporate strategy SBL has a strong focus on the export market with a significant proportion of sales generated overseas.65m.7% to INR121. nonautomotive and industrial friction materials with a strong presence in the domestic OEM and aftermarket. The combined production capacity of all three plants exceeds one million brake blocks per month. lined brake/clutch shoes. Outlook SBL has seen steady growth in its business with margins growing faster than sales.com Senior Officers K Mahesh.65m.7m (€2.87bn (€29. SBL customers include Mercedes-Benz. a decrease of 14. 31 March 2008) in 2008 from INR137.03. GM. Sundaram Brake Linings (SBL) was established as a joint-venture in 1976.Chennai. 31 March 2008) in 2008 as compared to INR216.tvsbrakelinings. Padi. in India. flexible rolls and insitu bonded shoes. 31 March 2007).87bn (€29. Employees 800 (2005) Financial Overview In the financial year ended 31 March 2008. depreciation and tax (EBDITA) was INR186. R&D has developed composite railway blocks inhouse which will be introduced soon and R&D is now equipped with Railway Brake Dynometer. Over the years SBL’s research infrastructure has been recognised by the Department of Scientific and Industrial Research (DSAR) as a key R&D center in the friction materials industry. In 2001.65m. SBL has built a large R&D infrastructure with significant investments into new product development. Renault.6m (€3.92m. Profit before interest. Net profit decreased by 11. 31 March 2007) in 2007. SBL became the first friction material manufacturer in the world to win the Deming Application prize for practicing Total Quality Management (TQM). SBL recorded sales of INR1. Market Development V Ramakrishnan. The Indian Supplier Report company to spend 4% of its sale revenue as SBL does. They have integrated the company’s products, technologies, and helped in reducing costs and improving production efficiency. Being a Deming award winning company will help SBL in increasing their exports. © SupplierBusiness Ltd 2009 285 The Indian Supplier Report Sundaram Clayton Aluminium castings, air brakes and components Address Sundaram Clayton Limited Jayalakshmi Estates 8th Haddows Road Chennai 600 006 Tamil Nadu India Sundaram Clayton is a leading supplier of air brakes and aluminium die-castings in India. The company has OE clients in the passenger car, commercial vehicle, twowheeler and diesel engine segments. The company also serves the export markets. TVS Clayton was formed in 1962 as a joint-venture between TV Sundaram Iyengar & Sons and Clayton Dewandre Holdings Limited for the production of compressors, servos units, slack adjusters, reservoirs, hoses and non-ferrous castings. In 1972, an aluminium foundry was setup for non-ferrous castings. In 1977, WABCO acquired Clayton Dewandre. Sundaram Clayton operates three plants, one each in Ambattur, Chennai and Hosur (Tamil Nadu). The die-casting division has two plants one each at Chennai and Hosur (Tamil Nadu). Sundaram Clayton generated 64% of its sales from the brakes division in the financial year 2005. Sundaram Clayton supplies Ashok Leyland, Bajaj Tempo, Bharat Earth Movers, Caterpillar India, Delphi - TVS Diesel Systems, Eicher Motors, Ford India, Hindustan Motors, Honda Siel Cars India, Hyundai Motor India, Mahindra & Mahindra, Sona Koyo Steering Systems, Swore Mazda, Tata Cummins, Tata Holset, Tata Motors, TVS Motor Company, Visteon India and Volvo India. The company also supplies internationally to Cummins, Fleet Guard, Ford, Holset, Komatsu, MACK, PT DaimlerChrysler, PT Wahana Perkasa- Indonesia and Volvo. Tel: + 91 44 2827 2233 Fax: + 91 44 2825 7121 Internet:http://www.sundaramclayton.co m Senior Officers Suresh Krishna, Chairman Venu Srinivasan, Managing Director Gopal Srinivasan, Joint-Managing Director C Narasimhan, President, Automotive Products N Raghunathan, President, Die-Casting C N Prasad, President, Brakes V N Venkatanathan, Senior Vice President, Finance R Murali, Senior Vice President, Finance Recent Developments Corporate strategy Leveraging a new government regulation which comes into effect in October 2006, making it mandatory for commercial vehicle OEMs to provide air brakes systems and automatic slack adjusters on new vehicles, Sundaram Clayton has increased its production capacity by adding a new facility. Further, Sundaram Clayton has increased vertical integration by establishing the die-casting division to produce high quality and high precision aluminium castings for in-house consumption. Further, its aluminium castings has found a large potential market within the passenger car OEMs. Joint-ventures Sundaram Clayton is a joint-venture between the TVS Group and WABCO. WABCO owns 39.17% stake in the company while the TVS Group holds 41%. Investments During the financial year 2006, Sundaram Clayton proposed an investment of INR 430m (€7.61m, 31 March 2005) for its brakes business and INR 930m (€16.46m, 31 March 2005) for its die-casting business. In June 2005, Sundaram Clayton commissioned its new air brake system manufacturing facility based in Ambattur (Tamil Nadu, India) at an investment of INR 580m (€11.1m, 30 June 2005). The plant manufactures air brakes for commercial vehicle OEMs and aftermarket. The entire air brakes production has been shifted to the new facility. Also in 2005, Sundaram Clayton installed a new 2,500 ton pressure diecasting machine. In 2005, Sundaram Clayton announced the opening of 25 new authorized service centres in India taking the total count to 100. Products Air brake actuation systems and components: actuators, Anti Spin Regulation (ASR) components, brake chambers, compressors, die-castings, hose assemblies, machined aluminium components, reservoirs, sub assemblies, switches and vacuum brake products for CVs, valves Plants Tamil Nadu (3) Sales INR 6.27bn (€116.7m, 31 March 2006) (Year to 31.03.06) Employees 1,200 (June 2005) © SupplierBusiness Ltd 2009 286 The Indian Supplier Report Contracts In 2004, Sundaram Clayton received fresh orders from Honda Siel India, Visteon and Tata Holset. Also in 2004, Sundaram Clayton was listed as a strategic source to the Volvo Group worldwide. Certifications Sundaram Clayton was awarded the Deming prize in 1998 and the Japan Quality Medal in 2002. The Chennai based die-casting facility of Sundaram Clayton is ISO 9001 and ISO 14001 certified. The company also has a test track at the Chennai plant which has been certified by MIRA and TUV. Infrastructure Sundaram Clayton’s has in-house infrastructure for high-pressure die-casting, low-pressure die casting and gravity die-casting. Sundaram Clayton is the only company in India with a 2,500 ton pressure die casting machine installed. The company has a team of 50 development engineers. Financial Overview In the financial year ended 31 March 2008, Sundaram Clayton generated sales worth INR 4.26bn (€116.7m, 31 March 2008). The company’s pre-tax income was INR354.0m (€19.3m, 31 March 2008) while the net profit was INR239m (€15.02m, 31 March 2008). The financials were not comparable to previous year’s figures as the company demerged its brake division into a separate entity. Year 2008 2007 2006 2005 2004 Year 2008 2007 116.7 94.9 77.9 Gross sales, INR bn 4.26 8.16 6.28 5.36 4.17 Gross sales, €m 67.45 140.96 19.3 13.5 12.4 Profit Before Tax, INR m 354.0 1281.0 1037.8 763.3 663.5 Profit Before Tax, € m 5.59 22.12 15.02 9.45 8.59 Net Profit, INR m 239.0 916.0 808.2 534.1 460.1 Net Profit, €m 3.78 15.82 116.7 94.9 77.9 Outlook The projected growth of the car segment in the domestic market and their projected export programme is likely to benefit the growth of SCL’s aluminium casting business. SCL’s new contracts with Honda Siel India, Visteon and Tata Holset would enhance their sales in the domestic market. SCL has reached the global quality levels which are validated by the Deming Quality Award and Japan Quality Medal. With the Government of India introducing regulations that stipulate the braking systems for commercial vehicles should conform to the stringent IS 11852-2001 standards will help SCL enhance their sales of braking systems. © SupplierBusiness Ltd 2009 287 The Indian Supplier Report Sundram Fasteners Fasteners, cold extrusions, hot forged parts Address Sundram Fasteners Ltd 98A Dr Radhakrishnan Salai Mylapore, Chennai 600 004 India Tel: +91 44 28478500 Fax: +91 44 28478510 Internet: http://www.Sundram.com Senior Officers Suresh Krishna, Chairman and Managing Director Sampathkumar Moorthy, President VG Jaganathan, President, Finance Balraj Vasudevan, President, Autolec K Ramaswamy, Vice President, Metal Forms Division K Muralidharan, Senior General Manager, Padi (India) plant R Premkumar, General Manager, Radiator Caps Division Atulya Gupta, General Manager, Pondicherry (India) plant K Raman, General Manager, Krishnapuram (India) plant YM Sankaran, General Manager, Marketing A Natarajan, Vice President, Sundram Fasteners (Zhejiang) Ltd (China) Steve Rose, General Manager, Cramlington Precision Forge Ltd (UK) G Krishnamurthi, Director, RBI Autoparts Sdn Bhd (Malaysia) Sundram Fasteners Limited (SFL) is a diversified US$160m supplier of automotive components including high tensile fasteners, cold extruded parts, powder metal parts, gear shifters and hot forged parts. The company is one of the fastest growing suppliers in India with operations overseas in China, Germany, Malaysia and UK. It is the largest manufacturer and exporter of high tensile fasteners in India. Sundram Fasteners is part of the US$2bn TVS Group, India’s leading automotive supplier group. The company has diversified beyond fasteners to pumps, extrusions and forgings as a result of its acquisitions in India and Europe. In 1997, SFL entered into an agreement with GM to supply the entire requirement of its radiator caps by transplanting the latter's facility from Wolverhampton (UK) to India. Sundram Fasteners has eight product groups and two plants in India. Its overseas operations include. Sundram Fasteners (Zhejiang) Limited: The Chinese subsidiary with a manufacturing base in Haiyan, Jiaxin city, Zhejiang. High tensile fasteners produced at the facility are exported to European customers. Cramlington Precision Forge Limited (CPFL): is a wholly owned subsidiary of SFL with a manufacturing facility in UK. CPFL produces precision forged components for heavy vehicles for highway and offhighway applications. RBI Autoparts Sdn Bdh: is a Malaysia based subsidiary engaged in the production of oil and water pumps for Proton. SFL holds a 70% stake in the venture and plans to use it as a base to expand in the ASEAN region. Peiner Umformtechnik GmbH: SFL's most recent acquisition, Peiner supplies fasteners to automotive and construction sectors. Peiner employs around 325 people with sales of around €50m per year and a customer base consisting of DaimlerChrysler, BPW, DAF Trucks, Sofrasar (Renault), Reyher and Textron. Sundram Fasteners supplying to nearly all the major OEMs in India including Ashok Leyland, Bajaj Auto, Bajaj Tempo, Fiat, Ford, General Motors, Hero Motors, Hindustan Motors, Kinetic Engineering, LML, Mahindra & Mahindra, Maruti Udyog, Tata Motors, TVS Motor and Yamaha. Apart from OEMs, Sundram Fasteners also supplies Bharat Forge, Brakes India, Delphi-TVS, Gabriel, Kalyani Brakes, Kirloskar, Lucas-TVS, MICO, Munjal Showa, QH Talbros, Rane TRW, Tata Johnson Controls and Toyo radiators. Internationally, the company’s customers are Arvin Meritor, ASC, Case New Holland, Caterpillar, Chrysler, Cummins, Daimler, Deutz, Dura, Deere & Co, Delphi, Deutz, General Motors, Holden, Holset, Iveco, John Deere, Kenworth, Komatsu, Mack, MTU, MG Rover, Mitsubishi, Perkins, Proton, Streparava, Valeo, Volvo and ZF. Products Belt tensioners, cold extruded parts, damper pulleys, electrical fuel pumps, feed pumps, gear, gear shifters, wheel & under-carriage and chassis fasteners, high tensile fasteners, hot forged parts, iron powder, mechanical fuel pumps, oil pumps, powder metal parts, radiator caps, rocker arm assemblies, spare wheel carriers, water pump Recent Developments Corporate Strategy In recent years, Sundram Fasteners has increasingly targeted supply opportunities in China, Germany, Malaysia and UK where it has presence through acquisitions. Having integrated the acquired setups, Sundram Fasteners is now working at intensifying its supplies towards the upcoming Nissan and Renault projects in South India, among other export oriented supply projects which utilise India as the base for supplying components globally. Plants China, India (10), Malaysia, UK, Germany Sales © SupplierBusiness Ltd 2009 288 The Indian Supplier Report INR16.3bn (€256.94m, 31 March 2008) (Year to 31.03.2008) Employees c. 1,400 The company has also significantly expanded its product mix with components like water pumps, oil pumps, extrusions and forgings. The company plans to leverage its global base by manufacturing components in India and China and then exporting them to the developed countries through its subsidiaries in Germany and UK. Acquisitions in India In December 2004, Sundram Fasteners completed the acquisition of Upasana Engineering Ltd (UEL) and Upasana Components Ltd (UCL). UEL supplies spokes and nipples for two wheelers and tools and UCL manufactures dowel pins and steering assemblies. The companies are now a subsidiary of Sundram Fasteners. In 2003, the operations of TVS Autolec, a listed group company was merged into Sundram Fasteners. Sundram Fasteners had earlier acquired Autolec Industries, a manufacturer of oil pumps and water pumps, in 1999. TVS Autolec has a 70% ownership of Malaysian company RBI Autoparts, a manufacturer of water pumps and oil pumps and supplier to Proton. Acquisitions outside India In November 2005, SFL acquired German firm, Peiner Umformtechnik from Textron Deutschland. SFL gained access to the European markets through this acquisition. Peiner supplies fasteners to automotive and construction sectors. In November 2003, Sundram Fasteners acquired the precision forge unit of Dana Spicer Europe through its fully owned subsidiary Cramlington Precision Forge (CPFL) for GBP1.5m (€2.16m, 30 November 2003). Sundram Fasteners has so far invested GBP 1.9m (€ 2.76m, 31 March 2005) over CPFL. Under the agreement Dana Automocion continues to source its precision forge requirements from Cramlington Precision Forge. The acquisition brought Sundram Fasteners relationships with customers including Albion Automotive, DAF Trucks, Dana, MAN, Parker and Scania. Investments During 2005, Sundram Fasteners invested INR838m (€14.83m, 31 March 2005) on capacity expansion programs across its facilities to meet increasing demand from local and international markets. In May 2004, Sundram Fasteners commenced production of high tensile fasteners at a new manufacturing facility in China. The factory is located in Haiyan Economic Development Zone (HEDZ), Haiyan County, Zhejiang province in south China, about 100km from Shanghai. The plant operates as a subsidiary under the name Sundram Fasteners (Zhejiang) Limited. The factory has an installed capacity of 6,000MT per annum and manufactures standard as well as value added special fasteners. Joint Ventures In 2006, the company started the operations of Sundram Bleistahl, jointventure with Bleistahl Produktions Gmbh & Co., Germany to manufacture valve train parts including valve guides and valve seat inserts in India. SFL holds 76% of the equity while the remainder vests with Bleistahl. Initial investment in the joint-venture was INR90m (€1.55m, 31 October 2004) with further plans to invest INR500m (€8.63m, 31 October 2004). Bleistahl transferred part of its production facilities from Germany to India and provided the technology. Most of the production is earmarked for exports. In 1998, SFL formed a partnership with Dura Automotive Group, USA for the production of gear shifters and parking brake assemblies for automobiles. Financial Overview In the financial year ended 31 March 2008, Sundram Fasteners posted total sales of INR16.3bn (€256.94m, 31 March 2008), an increase of 35.6% compared to INR11.9bn (€207.14m, 31 March 2007) in 2007. The company reported net profit of INR718m (€11.34m, 31 March 2008) in 2008 marginally lower than © SupplierBusiness Ltd 2009 289 The Indian Supplier Report previous year’s income. This was attributed to higher input costs and lower margins in replacement markets where costs increase was absorbed partially. Year Gross sales, INR m 16,262.20 11,994.40 10,619.90 9,295.50 6,891.20 Operatin g profit, INR m 1,277.60 1,717.80 1,405.40 1,339.40 1022.3 Profit before tax, INR bn 1,112.50 1,154.20 961.50 1,027.80 879.8 Net Profit, INR m 718.00 718.60 622.40 693.90 579 2008 2007 2006 2005 2004 Year Gross sales, €m 256.94 207.14 197.74 164.53 128.73 2008 2007 2006 2005 2004 Operatin g profit, €m 20.19 29.67 26.17 23.71 19.10 Profit before tax, €m 17.58 19.93 17.90 18.19 16.43 Net Profit, € m 11.34 12.41 11.59 12.28 10.82 Outlook In 2008, SFL was negatively impacted by currency fluctuations. While forex rates have become favourable, overall export demand has reduced following the global financial crisis. This has forced the company to reconsider focus on its domestic business. The company continues to enjoy fair performance at its Chinese facility which has received significant business from Chinese OEMs. © SupplierBusiness Ltd 2009 290 suprajit. window regulator cables Recent Developments Corporate Strategy SEL is leveraging its low cost capability to supply its European subsidiary. Area. clutch cables. 31 March 2008) (Year to 31. In 2004. speedometers. Gill was repositioned as global technology and engineering centre and the front-end for the company’s European operations. Kinetic Motor Company. SEL has transferred production of high volume export specific products to a dedicated export oriented facility to leverage tax benefits available. It is India's largest manufacturer of automotive cables with a capacity of over 40 million cables a year. It supplies the two-wheeler. SEL acquired CTP Gils Cables. Bangalore (3). Suprajit Engineering has recorded a Compounded Annual Growth Rate (CAGR) of 35% since inception. a UK based automotive cable manufacturer from Carclo PLC. Swaraj Mazda. Acquisitions In April 2006.2m (€3.08) Employees c. starting cables. 30 April 2006) for the acquisition. another cable manufacturer Plants India: Chakan . TAFE. The joint-venture has since been renamed Suprajit Automotive Private Ltd and manages export oriented production. SEL etes a global footprint with setup in in the ASEAN region. Class India. temperature gauges. gear shift cables. SEL is increasing production capacity at its existing facilities and making green field investments from the present 50 million cables to 65m cables per annum. In 2002. Speedometer business contributes 10-12% to sales and the balance comes from cable business. Honda Motorcycles & Scooters. SEL enjoys 15% operating margin. SEL’s customers consists of Bajaj Auto. Ford.The Indian Supplier Report Suprajit Engineering Automotive cables and gauges Address Suprajit Engineering Limited No. General ManagerOperations Products Brake cables. Mahindra & Mahindra. Bommasandra Indl. Kinetic Engineering. . LML.18m. SEL acquired Shah Concabs Private Ltd. Deputy ManagerMarketing V Manjunatha. tractor and commercial vehicle segments. one was structured to install cable production and the fourth one to start speedometer production. Tata Motors. fuel gauges. Hyundai Motors. Suprajit Engineering (SEL) was established as a cable supplier to TVS Motors in 1987 but today derives 61% of its revenue from the two-wheeler segment where it supplies to all major OEMs. throttle cables.Exports Narayan Shankar K.560 099 India Suprajit Engineering caters to a wide spectrum of automotive and non-automotive control cable requirements. China and assembly operations in Hungary. TVS Motor Company and Yamaha Motor. Ltd paying £2. Two plants have been utilized in SEL's chemical production. Calsonic Kansei.100. Hero Honda Motors. Bangalore .700 (2008) © SupplierBusiness Ltd 2009 291 . Korea. The company also acquired its 50% stake in CTP Suprajit Automotive Pvt. seat recliner cables. Eicher Motors. New Holland Tractors. Piaggio. Maruti Udyog.8bn (€28. Managing Director Harish Kumar. Tel: +91 80 7833827 Fax: +91 80 7833279 Internet: http://www. Currently the company derives 3% of its revenues from exports. Force Motors. SEL acquired four sick units from Karnataka State Financial Corporation. Brose. Chairman K Ajith Kumar. tachometers. Manager.com Senior Officers MRB Punja. latch release cables.56m. General Motors. Vapi . The company is a single source supplier to Yamaha for cables. Manesar . of which mostly comes from TVS. tachometer cables.12. mirror cable assemblies. choke cables. Lear India. passenger car. Pant Nagar Sales INR1. JCB. Gills Cables. Toyota. India) unit is certified with ISO14000 and ISO 18000 status. SEL recorded sales worth INR1. to set up an export oriented unit.38 Operating profit.62% compared to INR2.The Indian Supplier Report based in Gujarat (India).28% to INR138.09% to INR79.81m.87m (€3.06 1. SEL won an order from Textron. India) for customers in the Western Zone. In the financial year 2004. SEL transferred high volume production from Gills Cables. Certifications Four units of SEL have been accredited with TS 16949 status.8bn (€28.80 2. 31 March 2008) from INR115. 31 March 2002).2m. The move helped the company strengthen its presence in all automotive cables especially in the commercial vehicle segment. 31 March 2008). automotive cables. India) plant bringing it at par with other manufacturing facilities. Investments In April 2007.74 Net Profit. for a cash deal of INR50m (€1. 31 March 2007) in 2007. 31 March 2008) compared to INR220. SEL increased installed cable production capacity from 38m cables to 50m cables per annum. In 2005.83m (€2. UK to its Bangalore based export oriented unit. Production at the new plant started in October 2005. Carclo was sourcing some of its requirements from SEL since 2000. In June 2005. Minor assembly operations have been shifted to a new location in UK. The objective of the joint-venture was to outsource. Contracts In December 2005. Net Profit declined by 31. China for the production of automotive cables in China. near Bangalore (Karnataka). Even though the nature of the order is non-automotive. INR m 138. the existing business of CTP Gills Cables for its European customers. USA for lawn mower cables. In 2007. INR bn 1.06bn (€35. Profit before tax reduced by 37. SEL’s Manesar (Haryana. In July 2005. Joint-ventures In 2007. The plant exports cables to Jaguar. SEL completed expansion and up-gradation of its Vapi (Gujarat.3 220. Suprajit commissioned its cable manufacturing facility at Pantnagar (Uttaranchal). SEL merged Shah Concabs with itself.01m. SEL later bought into the venture and made it a subsidiary. Divestment In 2007.27m. Also in 2007. 31 March 2007) in 2007 on account of production transfers between SEL’s manufacturing facilities.81m (€1.56m. Suprajit commissioned its cable manufacturing facility at its second plant at Manesar (Haryana). SEL commissioned a cable plant at Pune (Maharashtra. SEL signed a 70:30 joint venture with Jiang Yin Yuan Feng Communications Equipments Co. SEL entered into a 50:50 joint-venture with UK based Carclo.18m. INR m 303. Toyota and GM.00m.81 115.87 187.11 227.92 Profit before tax. a decline of 12. Year 2008 2007 2006 Gross sales. 31 March 2007) in 2007. SEL has a technical collaboration with Toh Fon Machine Company for automotive cables. INR m 79.3m (€2. In December 2004. Additonally. SEL shares a technical collaboration with Chao Long Motor for speedometers. The project involved an investment of around INR120m (€2. Korea for logistics management in the respective countries for future projects.62m.83 128 © SupplierBusiness Ltd 2009 292 . In 2003. SEL sold its interest in subsidiary Suprawin Technologies. SEL signed an agreement with Michang Cable Company. 31 December 2004) located at Doddaballapur. Financial Overview During the financial year 2008. it is significant because Textron has interests in the automotive segment. 20 3.24 3.56 35.22 97.73 1.23 15. © SupplierBusiness Ltd 2009 293 . being a high production cost.62 2.11 119.89 84.The Indian Supplier Report 2005 2004 Year 2008 2007 2006 2005 2004 1.25 Operating profit. Hence.50 2.38 1.62 25.27 2.09 Profit before tax.09 0.81 3. exports of cable from India is a high potential area for SEL.84 Net Profit.23 2.73 148. makes it viable to produce in low-cost countries.58 Outlook The Indian automotive suppliers witness potential growth opportunities from outsourcing by OEMs and tier-one suppliers overseas. €m 5. €m 1. The company's decision to scale up its global operations has helped SEL to reduce its dependence on the domestic two wheeler business.83 Gross sales. The company targets to increase its share of the four wheeler business and reduce its two wheeler businesses to 39% by 2010 from 65% currently. €m 28.37 146. €m 2.00 2.42 182.65 19.23 4. low technology product area. SEL has made significant headway in this regard. Cables. com Senior Officers Keshub Mahindra.05) Employees c. gears. 31 March 2005) (year to 31.47% stake in Schoneweiss & Co. clutches. MSAT is on a lookout for further acquisitions in the North American and European regions. Schoneweiss is one of the top five axle beam manufacturers in the world and specializes in suspension. In September 2006. stampings and composites with manufacturing locations in India and Europe. Scania and Volkswagen. castings. gears and piston heads. leading its automotive components foray.The Indian Supplier Report Systech Diversified automotive supplier Address Mahindra & Mahindra Limited MSAT Division Mahindra Towers GM Bhosle Road Mumbai. Various companies have been bought under MSAT over the past two years adding to its product range. propeller shafts.000 tonnes per annum (TPA) and turnover of €90m (2005).03. GWK Group. transmission gears. power train and engine parts. Gujarat (2) UK(2) Sales MSAT Group: c. Stokes Group comprises of 3 companies and 2 manufacturing locations at Walsall and Dudley (both UK) with a client base consisting of Koyo Bearings. Through acquisitions. The Sourcing Unit: This division primarily focuses on vendor management and product development for global OEMs. ZF. Chairman Anand G Manhindra. Systech acquired a 67. steering knuckles. a leading German manufacturer of forgings. Systech acquired a 90. customers and marketing networks in the overseas market. hubs. The Manufacturing Unit: This division has several companies that produce forgings. steel. one of the top five forging companies in Germany for €140m. stampings. Plants India: Maharashtra (4). MSAT’s separation will eventually enable it to cater to non-Mahindra clients. ZF. Bentler. Kessler and Kolbenschmidt. Germany with 550 employees.400 018 Maharashtra India Tel: + 91 22 493 1441 Fax: + 91 22 495 1166 Systech. Land Rover. CAD and CAE services to the automotive. The Manufacturing Unit has six operating arms that produce forgings. During the financial year ended 31 December 2004. is the arm of the Mahindra & Mahindra group. The company supplies to leading OEMs and Tier 1 suppliers. Established in September 2004. power take off clutches used in the transmission.000 TPA and revenues of €180m (2005). universal joint kits. Internet: http://www. Jeco Holding AG is primarily focused on the Truck. connecting rods.mahindrasystech. 780 (2004) © SupplierBusiness Ltd 2009 294 . Visteon.6% holding in Stokes Group. steering column parts and axle shafts. INR10bn (€177.05m. MES offers enhanced design. Vice Chairman & Managing Director Hemant Luthra. earlier known as Mahindra Systems & Automotive Technology (MSAT). MSAT plans to acquire ready product range. President. The company has forging production of 100. gears. The company supplies to leading OEMs including include Daimler Group. composites and castings. GmbH. Though MSAT is at present a division of Mahindra & Mahindra. steel. Schoneweiss has three manufacturing plants in Hagen and Gevelsberg. crankshafts. including Daimler Group. the Mahindra Group has grown its components business through acquisitions. Its major products include gear boxes. Linde. Bus & Trailer markets. engine and differential gear boxes Corporate strategy MSAT is increasingly looking at strategic sourcing services from non-Mahindra OEMs. MSAT Products Recent Developments Automotive forgings. Most global acquisitions of Systech have been under this arm. technology. UK’s largest auto forgings company. The company has forging capacity of 50. Volvo. MAN Nutzfahrzeuge. aerospace and general engineering domains. Bosch. Agco. Currently its structure is loosely defined as a holding company of all Mahindra Group supplier subsidiaries. MSAT acquired 98. Systech was formed to lead the Mahindra Group’s diversification into the automotive components business..9% stake in Jeco Holding AG. Systech comprises of three core units: Mahindra Engineering Services (MES): This is a service provider of design and engineering services. MAN. Renault. synchronisers. It is a holding company of various component divisions of the Mahindra Group. In January 2006. In recent times. Ford and Jaguar. Acquisitions In January 2007. couplings. steering joints. clutch plates. Its acquisitions in India will focus on manufacturing and engineering primarily for export customers. engine & axle parts. U. MSAT is acquiring companies aggressively both overseas and in India to develop an infrastructure to win large global contracts. Mahindra SAR Transmission was certified QS-9000 in 2001 from TUV Suddeustshchland and has a ISO/TS-16949-2002 certification.000 tons and recorded sales worth INR2. The company is also now becoming a technology leader in the industry and currently employs 300 qualified engineers dedicatedly working in the R&D team. Contracts MSAT is working on the Renault Logan project for India due for launch in 2007.41% stake in Plexion Technologies (India) Limited. Financial Overview Systech is a privately held division of the publicly traded Mahindra group. Certifications Mahindra Sona was certified ISO-9001 in 1995 and QS-9000 in 1999. focusing on aerospace & automotive engineering businesses. In June 2005. 31 December 2004).8bn in 2007. In December 2005. Germany. Mahindra Ugine Steels was incorporated in 1962 as part of the Mahindra & Mahindra Group and in 1962 it entered into a technical collaboration with Ugine (France) for the production of alloy constructional steel products. Mahindra Automotive Steels (MASPL) acquired a Chakanbased (Maharashtra) forging facility from Amforge Industries for an undisclosed amount. Maruti Udyog.The Indian Supplier Report Stokes Group recorded sales worth GBP25m (€35. Mahindra will provide MSAT the finance and administrative support for growth. Joint-ventures Siro Plast has a technical agreement with Menzolit GmbH (Germany) for sheet-moulded components and dough-moulded components. Mahindra & Mahindra.10bn (€40. The group had sales of US$3.K and USA. The facility supplies crankshafts.31m. The company has operations in Asia. Kirloskar Oil Engines and Escorts. The facility has an installed capacity of 40. steering knuckles and connecting rods to Tata Motors.06m. © SupplierBusiness Ltd 2009 295 . Mahindra Sona Ltd was established in 1995 as a joint-venture between Mahindra & Mahindra and Sona Koyo Steering Systems. Outlook Systech is growing at a fast pace with the backing of its parent company Mahindra & Mahindra that has the resources to support the new supplier initiative. Plexion is a provider of Computer Aided Engineering Services. 30 June 2005) in 2005. Mahindra & Mahindra acquired a 88. TAFE and TVS. Hero Honda Motors. Bajaj Auto. centrelink assembly.com Senior Officers Naresh Talwar. Haridwar (Uttarakhand). kits. shoes. Maruti Udyog. Exports and replacement market account for 14% and 17% respectively. Sr Vice President. Faridabad (Haryana) and Pune (Maharashtra).35m. TACL operates from three plants strategically located in Chennai (Tamil Nadu). brake shoe back plates and airconditioner components. Simpson &Co. steering and axle boots. Super Oil Seals India: manufactures oil seals for automotive applications Super Seals India: manufactures hoses for automotive and industrial application. Export-incharge Talbros Automotive Components Limited (TACL) is a part of the Talwar group. Manager. Exports Jayant Verma. QH Talbros: QH Talbros is a joint-venture between the TACL and Quinton Hazell Automotive. back plat disc pads.Talwar Automotive Components Umesh Talwar. Rane (Madras). Talbros' customers include Ashok Leyland. hydraulics and clutch facings.The Indian Supplier Report Talbros Automotive Components Gaskets. Swaraj Mazda. The company is market leader in safety critical. Other group companies consist of: Allied Nippon Ltd: manufactures brake pads. LML. dust covers and engine mountings. and complete steering linkage assembly. Punjab Tractors. Talbros was established in 1956 by the Talwar Brothers in collaboration with Federal-Mogul. Tata Motors. frames. MICO. Kinetic Engineering. stabilizer joints. stampings & rubber. Finance K Sairam. Udyog Vihar Phase . Nippon Leakless: is a joint venture between TACL and Nippon Leakless. oil seals Talbros Engineering Limited: manufactures automotive axles. Kirloskar Oil Engines. Hyundai Motors India. rubber bushes Plants Chennai (Tamil Nadu). Talbros Private limited: manufactures rubberised cork sheets. rubberised cork gaskets. dust covers. drag links. rubber metal components. Pune (Maharashtra) Sales INR1. Lucknow (UP). Senior Managers. International Tractors India. Faridabad (Haryana). steering linkages. washers. commercial vehicles and two-wheelers 20% each and tractors 5%. Finance Rajendra Kaul. Chairman. ball suspension joints. L&T John Deere. Eicher Motors. Operations Sujat Vora.122 016 Haryana India Tel: +91 124 400 2963 Fax: +91 124 400 2960 Internet: http://www. Sales Praveen Sharma . Passenger car gaskets account for 24% of the company's sales. suspension arms. suspension rubber bushes. Force Motors. Tata Cummins. Escorts. forged and machined auto components. President – Gaskets Inderjit Dhariwal. Stamping & rubber RP Grover. secondary gaskets and manifold and exhaust systems. seals. QH Talbros also manufactures tie rod ends. The group is a conglomerate of eight automotive supplier companies with plants spread across the country.Operations. USA to produce automotive and industrial gaskets in India. Hindustan Motors.talbros. XO Stampings Limited: manufactures sheet metal automotive components for vehicle suspension and steering linkages. TACL holds an 8% stake in the company. Mahindra & Mahindra. Joint Managing Director Navin Juneja. Royal Enfield Motors. forging Address Talbros Automotive Components Limited 400. As the group’s flagship company Talbros Automotive Components is India’s largest gasket manufacturer with a diversified customer base and a 40% market share in the domestic gaskets business. General Manager. Honda Motorcycle & Scooters India. New Holland Tractors India. 31 March 2008) Employees Recent Developments 850 (31 March 2007) Corporate strategy © SupplierBusiness Ltd 2009 296 . king pins. Products Cylinder head gaskets.III Gurgaon . spline shafts and forgings. rolls.85bn (€29. President. bellows. GM. Japan for the supply of gaskets to Japanese OEMs. Forging KK Dora. discs. rack ends. sealed for life and self lubricating ball joints for steering and suspension systems. Vice Chairman and Managing Director Nikhil Talwar. Federal Mogul signed a 10-year technical assistance agreement with Talbros for gasket production. with rapid scaling up of the forgings. Talbros formed an agreement with Ishikawa Gaskets Company (Japan) for gasket technology for diesel engines. © SupplierBusiness Ltd 2009 297 . 31 March 2007). Also in 2007. TACL is upgrading its present gasket manufacturing facilities to improve its product mix. Talbros is tapping the Japanese passenger car OEMs – a segment where TACL is relatively weak .8m. Acquisitions In 2007. 31 March 2007). XO’s product range was widened. sales by Talbrosto Honda and its associates in India were transferred to the joint-venture over a three-year period ended April 2008. Talbros plans to extend its forging capabilities to fully machined forgings. Joint-ventures In January 2005. quality improved and facilities upgraded at a cost of INR 60m (€1. Contracts Talbros is the single source supplier of gaskets to Honda Motorcycle & Scooters India. The two companies committed an investment of INR120m (€2. The plant is scheduled for start in 2009. The company is also laying increased emphasis on machined forgings to increase value addition. 31 March 2007).21m.52m. Around 35% capacity is earmarked for exports. 31 March 2007).through a joint-venture with Nippon Leakless. The figure is targetted to come down to 51% by 2010. 31 January 2005) annually. Investments In 2007. In 2007. Talbros has been using a high value proposition with gasket sales mainly in the engine segment. TACL announced an expansion and technology up gradation at its Faridabad and Pune based Gasket manufacturing units at a capital consideration of INR 70m (€1. consolidating most automotive businesses under the Talbros brand.1m. Talbros announced a greenfield sheet metal unit in Lucknow for supplies to Tata Motors. TACL acquired sheet metal components business of XO Stampings. In 2007. TACL has embarked on an ambitious expansion plan which involves addition of new products. In January 2007. the Nippon Leakless joint-venture announced a greenfield facility at Hero Honda Vendor Park at Haridwar.08% of its revenues through gasket sales.90m. According to the agreement. In 2003. 31 March 2007).04m. Also in 2007. Additionally. TACL announced the addition of marching facilities to its forging plant at a cost of INR 70m (€1.54m.21m. In 2007. TACL announced a new facility at Faridabad (Haryana) for the production of automotive dust covers and bushes at a cost of INR 31m (€0. stampings and rubber businesses. Talbros is the single source supplier of gaskets to Tata Cummins. TACL made an investment of INR 30m (€0. Talbros entered into a 40:60 joint-venture with Nippon Leakless Corporation to supply Honda and its associate companies in India. Talbros supplies gaskets to the GM Chevrolet Tavera program. XO Stampings was a tier II vendor to Tata Motors and Maruti Suzuki. Talbros supplies single source to Honda Siel India and Honda Power Products. Talbros Automotive Components commissioned a new 8000 ton per annum forging facility at Bawal (Haryana) for supplies to QH Talbros and other customers. While exiting Talbros. Federal Mogul divested its 30% holding in Talbros as it filed for chapter 11 protection. Also in 2007. 31 January 2005) in the joint-venture and generate sales worth INR500m (€8.The Indian Supplier Report TACL has recently restructured its businesses. Talbros announced a new gasket manufacturing facility at Uttarakhand at a capital outlay of INR 110m (€1. In 2004. technologies and processes across three operating verticals. TACL generated 86. Talbros announced the expansion and relocation of the stamping business acquired from XO Stampings. 31 March 2007). Further. The tier-II operations of the stampings business are being upgraded for tier-I supplies. Certifications TACL has been accredited with ISO 14001 and TS 16949 certifications.27 95 56. Moreover.35 32.53m.26 0.85 80. 31 March 2007) in 2007.02 0.05 Operating Profit. INR m 193. 31 March 2007) in 2007.59 91.82 0.59m. Profit before tax grew 5.3 46.64 31.04 138.63 127. © SupplierBusiness Ltd 2009 298 . The growing domestic market and a wide customer base will benefit Talbros and help it de-risk its business from cyclical down trends. € m 1.85bn (€29.33 2.58 1. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales.50 Profit Before Tax.26 1. Net profit was reported at INR89. 31 March 2007) in 2007.37 Operating Profit. increased emphasis on stampings and finished forgings will help Talbros re-orient its revenue mix in a progressive way.27m (€1. 31 March 2008).82 Net sales. €m 1. TACL’s gasket joint-venture will have a significant impact on the bottom line as traditional vendor relationships lead to follow through source business.83m (€1.05 0.The Indian Supplier Report Talbros is the single source supplier of gaskets to L&T John Deere. INR m 96.05m.05 Profit Before Tax. decreasing by 6. INR m 89.3% compared to INR95m (€1.59m (€1.64 1.35m. €m 29.51 17. Financial Overview In the financial year ended 31 March 2008.42 1.53 1.18% to INR96.5% compared to sales of INR1.98 15.58 2.25 Net Profit.85 1.58 Net Profit. € m 3.86m (€32.40 Outlook Talbros is ambitiously diversifying and increasing capacity of its current business.42m.86 1.64m. a marginal decrease of 0.42 1. Talbros Automotive Components generated sales worth INR1.54 21.8 71. 31 March 2008).05 26.83 84. 31 March 2008) from INR91. INR bn 1.59 1. 31 March 2005) (Year to 31. Technical Stampings: a joint-venture with SungWoo Hi-Tech Company (South Korea) for sheet metal stampings and assemblies. Retail Operations Rino Raj. TACO Ficosa: parking-brake. Special Projects & Administration Prashant Nayak. handled by a core team with expertise in commodity-wise technical and commercial skills with ISO and QS certifications and one master Black Belt in Six Sigma.aftermarket operations. exhaust systems. Managing Director Nitin Anturkar. US$330m (€255. Marketing & Sales UV Rao. Vice President. sunvisors. TACO MobiApps Telematics: vehicle tracking systems. TATA Johnson Controls: seating systems. Toyota (Tooling for Indonesian project). Here. the company provides customised tooling solutions for its automotive customers. TACO Kunststofftechnik: Plastic interior and exterior parts. chassis & suspension. This closely-held automotive supplier consists of 16 manufacturing joint-ventures and one manufacturing subsidiary. control cables. The SBG has progressed very well in managing its enterprises and its supplier base of best-in-class vendors. stabiliser bar. gear shift. Vice President. Corporate Planning & HR Vikrant Deshmukh. General Manager.tacogroup. Knorr Bremse Systems: air-brake systems for heavy commercial vehicles. manufacturing and supply chain management. Executive Vice President. plastic exteriors. electronics. In TACO Tooling SBG.IT & e-Enabled services Raman Nanda. Gujarat. UK (Dies for Rotor Laminations and Stator Lamination) and Magnetti Marelli (Instrument cluster in Plastic). Vice President. Its previous tooling customers include Toyota Kirloskar (Skin panel tooling for the Rear door of the Qualis model). Known as Wuedsch Weidinger before being acquired in August 2005. fee-based activities like product design and development are undertaken. coil springs. Honda Siel (Tooling for the new car civic??). TACO Interiors and Plastics: a joint-venture with Faurecia for interior and exterior plastics. TACO’s wide product range under the manufacturing SBG is structured into the following companies: Automotive Composite Systems International: a joint-venture with Owens Corning (USA) for sheet moulded composites. Nucleon. Cummins. automotive command-and-control. value and application engineering and prototyping. mirrors. engineering. Under engineering SBG. TATA Nifco Fasteners: fasteners. Automotive Stampings and Assemblies: sheet metal components and welded assemblies. TACO has competence in handling reverse engineering. windshield washer system.56m. stampings and assemblies.03. rod-andcable gear-shifting and washer systems and rear-view mirror products. Maharshtra (11) Sales Group: c. USA (Tool design). TATA Toyo Radiator: heat exchangers TATA Yazaki: wiring harnesses TATA Yutaka: exhaust systems and brake discs. TACO’s sales have recorded a CAGR of 57% in the 1999 to 2003 period emerging as one of the top five Indian automotive supplier groups. CAD and CAE implementation. Plants Tamil Nadu (2). General Manager.05) Employees Group: 3. Executive Vice President. plastic fasteners. TACO’s activities are divided into five Strategic Business Groups (SBG) . wiring harness. engine cooling systems. TC Springs: suspension springs. TACO Hendrickson Suspension Systems: commercial vehicles suspension systems. Electronics SBG and Head.500 (2005) © SupplierBusiness Ltd 2009 299 . Engineering S Asokan. TACO has assessed and built a list of automotive components which have a Products Seating systems. Projects Tata Autocomp (TACO) is a part of the diversified Tata group.com Senior Officers DS Gupta. air brake system and vehicle tracking system. TACO Visteon: engine induction systems. torsion bar. General Manager. Fort Mumbai 400 001 India Tel: +91 22 56658282 Fax: +91 22 22845523 Internet: http://www. plastic interiors. Supply Chain Management Praveen Gupta.The Indian Supplier Report Tata AutoComp Diversified automotive supplier Address Tata Autocomp Systems Ltd Bombay House 24 Homi Mody Street. TACO formed a joint-venture with Stadco (UK). CAE and other services for Visteon’s global operations. Mahindra & Mahindra. BMW. Coventry (UK) based. Ford. Enfield. Ashok Leyland. Investments In June 2005. TACO has done some work in embedded software development field while production of electronic components is yet to begin. The company offers vehicle tracking systems and logistics solutions based on GPS enabled by GSM and CDMA technologies. UFI. Hyundai Motors. Toyota.38m.1m (€19. Valeo. 31 March 2005) in 2005. machined castings and forgings. Recent Developments Corporate strategy TACO started operations in 1996 initially to supply parts to the ambitious Indica small car project of sister concern Tata Motors. Taco has a target to generate 50% of its sales from exports by 2008. Apart from manufacturing. Tata Stadco Automotive to offer low-cost body system design and development services for global component suppliers and vehicle manufacturers. These are machined castings. Its electronics SBG is at a nascent stage. In the period.87m. The 270 employee company was acquired through TACO’s German subsidiary. Aftermarket SBG is in the conceptual stage. For this purpose. Bentley. Germany) with customers including Audi. Volkswagen and Volvo. Mitsubishi. Behr. Daimler Chrysler. Weidinger has a plant in Coburg (Bavaria. L&TJohn Deere Ltd. Textron. TACO announced a joint-venture with MobiApps under the name of TACO MobiApps Telematics (TMT). TACO Visteon Automotive Products (TVAP) is a stand-alone entity for the production of engine induction systems and lighting systems for the Indian OEMs. Punjab Tractors. it set up 13 joint-ventures with global majors for the manufacture of major components required for passenger cars. TACO announced the acquisition of German plastic components supplier Wundsch Weidinger. Tata Motors. Honeywell Engineering.The Indian Supplier Report competitive edge in being sourced from India. Johnson Controls. turned parts and small system assemblies. Tong Yang Group. This gives TACO a free hand in growing its business. TACO plans to establish automotive spare parts retail and service chain in partnership with a global leader in the field. Taco formed two joint-ventures with Visteon. The company had filed for insolvency in March 2005. This move allowed TACO to access and build competence in modern technology of automotive parts without allocating excessive resources in the project. Ficosa International. Further. the export share of company sales increased from 9% in 2004 to 12% in 2005. DaimlerChrysler. system assemblies. GM. rubber parts. 31 March 2004) in 2004. Fiat. Taco’s customers include Albion Automotive. Escorts. Honda Motorcycle & Scooter. SAN Motors. Taco exported components estimated at US$37. Cummins. Hero Honda. Joint-ventures In June 2005. Stadco has developed expertise in body-in-white engineering and manufacturing. Acquisitions In August 2005. Piaggio. TACO plans to increase its base to 40 to 50 joint-ventures covering possibly most of the automotive component areas as well as make acquisitions overseas. Taco’s exports sales include engineering services. Eicher. Honda Siel. The joint-venture supplies airbrake systems and components including air brake valves. stampings. Volkwagen and Yazaki. In 2005. TAFE. In 2005. plastic components and wiring harnesses. Visteon. Volvo. Magnetti Marelli. Gabriel. growing approximately 57% over US$24. CNH. air supply / © SupplierBusiness Ltd 2009 300 . TACO-Knorr Bremse inaugurated its air-brake systems manufacturing facility at Pune (Maharashtra). Bajaj Auto. logistics and services business areas.9m (€29. machined forgings. Delphi. TACO has a significant focus on engineering. TACO acts as a holding company of the manufacturing units while each of them has an independent management. Faurecia. The second venture Visteon TACO Engineering was established to provide CAD. TACO’s engineering SBG has high potential in earning foreign income.4m. In 2004 Tata Johnson Controls. In 2004. earned the contract to supply seats for Ford Fusion model in India.The Indian Supplier Report treatment systems. Through 2001. Taco formed two joint-ventures with Visteon at an investment of INR 550m (€10.7% management control for INR162m (€3. Tata Auto Plastics began supply of small plastic parts to GM Corsa program. This was followed by setting up a moulding facility. incremental sales would come from aftermarket and Electronic SBGs which are yet to begin full operations. 30 June 2005).5m. © SupplierBusiness Ltd 2009 301 . automatic slack adjusters. 85% of TACO’s sales came from Tata Motors. A large part of its future growth is expected to accrue from exports which currently contributes to 12% of sales but is estimated to rise to 50% by 2008. foundation brakes and allied systems to commercial vehicle manufacturers in the domestic market. Tata Auto Plastics earned the contract to supply ashtrays to the current GM Vectra model. TACO bought a 30. Taco plans to grow to 50 joint-ventures. In June 2005. The facility will cater to global customer requirements for rear view mirror systems. It sources technology and products from its joint-venture partners rather than investing in original R&D. TACO does not publish its financial results. In April 2005. a total of INR90m (€2. product design and knowledge-based processes. Tata AutoComp generated estimated sales of US$330m (€255. actuators. To reach its target of US$1. In 2003. Taco inaugurated its Tata Ficosa export-oriented plant located near Pune (Maharashtra). factory and equipment for exhaust systems production. Contracts In 1999. In February 2005. 31 March 2004) in 2004. Financial Overview In the financial year ended 31 March 2005. 31 March 2005). one of the major suppliers of steel stampings to Maruti. New Product Developments TACO’s strategy is to build its competence in application engineering. TACO joint-venture with Faurecia. In the future.16m.1m.4% over US$261m (€214. but TACO has reduced the dependence to 45% by winning new contracts from most Indian OEM and from exports.6m. TACO plans an IPO in 2006 or 2007 which would bring in much needed capital to fund expansions and initiate aftermarket and electronic SBGs. 31 December 2001) was invested in TACO joint-venture Tata Yutaka for purchase of land. an increase of 26.0bn sales. Tata Auto Plastic established a warehouse and assembly facility near Bangalore to supply Toyota Kirloskar Motors. Being an unlisted company. In March 2003. Outlook Tata AutoComp is a top five Indian automotive supplier at CAGR of 57% in its eight years since inception. 31 March 2003) in JBM SungWoo from Jai Bharat Maruti (JBM). business development Products Accelerator cable. cable-type systems. Ford. Fuel-cap-opening cable. Pune (Maharashtra). The company is expanding its product range to move up the value chain and become a system supplier.17m. Exterior rear view systems. Odometer cable.411 027. Maharastra. L&T John Deere. Taluka Mulshi. Handbrake cable. pumps. Hoodopening cable. Ficosa has been actively sourcing components from Tata Ficosa for its Spanish. etc. gear shift with cable mechanisms. India Tata Ficosa is part of the Taco group. Brose. Tata Motors. The plant supplies to overseas customers. gear shifter systems and rear view mirrors with hydrophilic film. Mahindra & Mahindra. Tata Ficosa manufactures: Rear view mirrors: The company supplies simple chromatic and the prismatic anti-glare type interior rear view mirrors and external electronic and standard rear view mirrors. The facility manufactures and exports interior rear view mirrors to global automotive OEMs. Pune. Tel: +91 20 22932133 Fax: +91 20 22932127 Internet: http://www. 31 March 2008) (Year to 31.com Senior Officers DS Gupta. gear shifters. clutch control cables. hood and fuel filler cap release cables and seat and door latch release cables. Mono pump washers.The Indian Supplier Report Tata Ficosa Rear view mirrors. windshield washer systems. Selfadjusting cable. CEO BP Shiv. Previously production was being Plants India: Pune (Maharashtra) (3) Sales INR770m (€12. Plot #1. Fiat. In February 2004.tacogroup. Investments In April 2005.2m pieces which was subsequently expanded to 2m pieces. brake fluid tanks. Tata Ficosa inaugurated a new manufacturing facility in Hinjewadi. Dual pump washers Tata Ficosa customers include Aditya Auto. Choke cable. 30 November 2002). It exports to Meritor. In November 2002. The company has built in-house designing facilities and developed brake lever systems.08) Employees c. Interior rear view systems. Mexican and Portuguese operations. Honda Siel Cars. Hinjewadi.230 (2008) © SupplierBusiness Ltd 2009 302 . Tata Johnson Controls and Toyota Kirloskar Motors. Ficosa (Portugal. water level sensor.03. Speed-control cable. Its export business with Ford is noteworthy which extends to programmes in Europe. Bi-directional selfadjusting cable. throttle cables. Clutch cable. Gear shifter systems: The gear shifting product portfolio comprises of rodtype systems. Parking brake systems: This includes a self-locking nut for adjustments. cable guides and uniform strokes at both left and right brake shoes and routing flexibility through a twin wire conduit. Tata Ficosa commissioned its second plant with a capacity of 1. Hindustan Motors. Joint-ventures Tata Ficosa has a technical alliance with Japan-based Murakami Corporation for rear-view mirror production. Recent Developments Corporate strategy Tata Ficosa is adding to its customer base and aggressively increasing exports. parking brake systems Address Tata Ficosa Automotive Ltd. Washer systems: The company supplies windshield washer systems and associated products including expansion tanks. an associate of Tata Motors. Seat-control cable. especially Ford Europe. Survey #235/245. Head. General Motors. dashboard systems and ultra-compact systems. operates 17 joint-ventures encompassing a wide component range. Mexico and South Africa. filters and nozzles. the company opened its first plant at an investment of over INR60m (€1. Gearshift system cable. control cables. Chairman Shirish Shewalkar. Push-pull systems cable. Tata Ficosa was established in 1998 as a 50:50 joint-venture with Ficosa International of Spain. Gear shifters.25m. valves. TACO. Cable and control systems: The company supplies parking brake cable systems. Spain and Turkey) and Ficosa (Mexico and USA). In 2002. Moreover.17m. its association with Murakami Corporation will help the business unit in introducing new products for the domestic customers. the company commenced supplies of cables to Ford in South America and Mexico. Tata Ficosa sales were INR770m (€12. In 2000. Ficosa Spain. The company is a business unit of the Taco group which is not a listed company and financial details of the company are not available. Tata Ficosa began supplies of mirrors to Ashok Leyland. Tata Ficosa began supplies of mirrors to Fiat India. the company commenced supplies of parking break lever and cable system to Ford Ikon model. Outlook Tata Ficosa steadily introduces new products from Ficosa’s International range. In 2003 Tata Ficosa began supplies of gear shifters to Tata Motors. Tata Ficosa began supplies of mirrors to Mahindra & Mahindra. Further. Financial Overview In the financial year ended 31 March 2008. Tata Ficosa supplies rear view mirrors to the Tata Winger program. 31 March 2008). This plant helped Tata Ficosa improve its capabilities and increase its capacity to meet the requirements of its expanding domestic customer base. © SupplierBusiness Ltd 2009 303 . In 2001. In 2003.The Indian Supplier Report carried out from a rented facility. The company supplies cable type gear shifters for HM Mitsubishi Cedia and Honda City models. Tata Ficosa supplies mirrors to Toyota Kirloskar. which is key for its growth. In 2000. Tata Ficosa supplies mirrors to Ford in Europe. The company has gained sizable business from European OEMs and other players through Ficosa's network. Tata Ficosa supplies washer systems to Fiat India. In 2002. Ficosa's strength will help the jointventure with new contracts. Tata Ficosa began supplies of seating system cables to Tata Johnson Controls. Tata Ficosa supplies gear shifters to the Tata Vista program. Mexico and Portugal began sourcing components from Tata Ficosa. as it becomes a systems supplier. Tata Ficosa is expected to grow with the domestic passenger car market as well as the export opportunities. In 2001. Contracts Tata Ficosa supplies rear view mirros to the Tata Vista program. In 2001. Tata Ficosa began supplies of parking brake and cable system for the Tata Indigo and Mahindra Scorpio models. it will move up the value chain as an increasing number of vehicles are developed domestically. South Africa and North America. metal frames. Tata Johnson Controls has emerged as a major supplier of seating systems in India in its short time of existence. the engineering division has 400 engineers servicing 25 of Johnson Controls international customers and product business units in North America.30m. Joint-ventures Tata Johnson Controls Automotive is a 50:50 joint-venture between Johnson Controls International BV.3m sets at its Pune (Maharashtra. Piaggio.000 sets per annum from 30. Fiat India.000 sets. TJCs global relationships helped it win new contracts. TJC increased its seats production capacity to 0. The company has recently entered the electronic instrument cluster market for the compact saloon segment. Engineering Ashutosh Sharma. Sohrab Hall 21. TJC is widening its product range beyond seats to include instrument clusters from Johnson Control's international portfolio. TJC has entered the commercial vehicles seating business. Further. Aurangabad (Maharashtra) (2). TJC formed TJC Cluster Engineering and Electronics for supporting the international operations of Johnson Controls Electronics and developing instrument clusters for Indian OEMs. Netherlands and Tata Motors. India) facility to 40. TJC supplies to the global operations of Johnson Controls in Mexico. design. Daimler. Tel: +91 20 2600 0100 Fax: +91 20 2605 9104 Internet: http://www. General Manager. The division is one of Johnson Control's largest offshore engineering centers in India. Rudrapur (Uttaranchal) Sales INR3. Based in Pune (Maharashtra). Tata Johnson Controls (TJC) India was the first of the TACO joint-ventures set up in 1996 in a 50:50 partnership with Johnson Controls to manufacture seating solutions for the automotive industry. Business development & exports Products Arm rests. including engineering. Investments In 2006. 600 (2008) © SupplierBusiness Ltd 2009 304 .411 001 A part of the Taco supplier group. CEO Josef Memmel. seat trims.tacogroup. Europe and Asia Pacific. seats Recent Developments Corporate strategy Johnson Controls entry into India was based on ready volume business from Tata Motors for its Indica platform variants. 31 March 2008) Employees c. The company is developing mechanical and pneumatic suspension seats for high-end truck segment as it anticipates legal changes in truck seating regulations.The Indian Supplier Report Tata Johnson Controls Seating systems Address Tata Johnson Controls Automotive Ltd 301-309. dynamic and crash analysis. TJC increased its installed capacity at its Chennai (Tamil Nadu. Mahindra & Mahindra. headrests. In January 2005. Chairman Ashok Belani. Ford India. Once established. foam. trim development and mandatory testing. Sasoon Road Behind Pune Railway Station Pune. TJC's customers include Tata Motors. A large investment was made and capabilities established to outsource an increasing amount of development work to its Indian joint-venture.5bn (€55. TJC divides its operations into manufacturing and engineering divisions. prototype building. India) facility. Also in 2006. Additionally Johnson Controls GmbH. TJC's engineering division has assumed an important role for Johnson Controls internationally. The Engineering division handles Johnson Control's global projects. Germany has technical and financial collaboration with TJC for seating systems. static. Plants India: Chennai (Tamil Nadu) . Royal Enfield and Volvo. COO. Pune.com Senior Officers DS Gupta. TJC became the first company in Taco Group and JCI Asia Pacific to earn this certificate. Indigo. TJC supplies headrests and centre armrest for the Toyota Corolla programme to Araco Automotive. New Product Development Tata Johnson Controls has one of the largest offshore engineering centres in India which serves Johnson Controls' global seating. © SupplierBusiness Ltd 2009 305 . Ford Q1and Sox certified.5bn (€55. TJC generated sales of INR3. TJC is certified OHSAS 18001 (Occupational Health and Safety Management System). with technology from Johnson Controls. exports and engineering services.1 and ISO/TS 16949 certifications. India) plant. 31 March 2008). India) facility. tracks. arm rests to Ficosa’s network. Ford MS 9000. Its export business is assuming an increasingly larger role as Johnson Controls outsourcing of seat parts from TJC grows. The company plans to widen its product range but may face competition from other Taco group joint-ventures for the same products squeezing its growth opportunities. guide head restraints. TJC supplies seats to Royal Enfield from its Chennai (Tamil Nadu. TJC exports recliners. Financial Overview In the financial year ended 31 March 2008. TJC supplies to the Ford Ikon program from its Chennai (Tamil Nadu. Certifications TJC is accredited with QS 9000. TJC is privately held and does not publish its financial statements. As a tier-II vendor. VDA 6. TJC is in the process of launching electronic instrument clusters for passenger cars and utility vehicles. Safari and Sumo programs. The company supplies seating systems to Daimler India. interior and electronic design requirements. ISO 17025:1999.The Indian Supplier Report Contracts TJC supplies seats for Tata Indica. Outlook Tata Johnson Controls has steadily grown to become a leading player in the domestic seating systems sector averaging annual growth from 20% to 25%.30m. Yet future prospects for TJC are good through its growing revenue streams including domestic component market. globally. recliner covers. TJC manufacturing facilities are ISO 14001:2004. Tel: + 91 22 5665 8282 Fax: + 91 22 5665 8113/ 8118 Internet: http://www.03. establishing new facilities and acquisitions in the domestic and international market.7m tonnes per annum registered sales worth US$ 406m (€ 342. India.5mtpa steel billet making facility and an additional 3mtpa export oriented steel plant in Iran. Tata Steel segments its business into the following divisions: Steel division: Cold roller products. wire rods.Engineering services & products Koushik Chatterjee. The planned expansions shall be brought through hiking capacities at existing facilities. The acquisition was made as a part of Tata Steel’s global expansion plan. In June 2005.24bn (€ 2. Philippines. Homi Mody Street. Thailand and Vietnam with expertise in flat products. In January 2005. Tata Steel inked a joint-venture with West Bengal Industrial Products Bearings.25m ton metallic coating line and a 0. Chairman B Muthuraman. Vice President. which would establish steel-making project in the Persian Gulf Special Economic Zone at the port city of Bandar Abbas.tatasteel. Vice President. Ferro Alloys & minerals division: non-automotive Tubes division: non-automotive Bearings division: is a leading supplier of bearings.7m tonnes per annum of rebars. Thailand from Siam Cement Company. 30 November 2005) with operations scheduled for a mid 2008 commencement. China. Tata Steel acquired the steel business of NatSteel Limited. Millennium Steel.83m. Thailand. Singapore for US$ 486. Iran.84bn. Tata Steel is working on a de-integrated model for growth wherein the company shall create semi-finished products like slabs and billets at locations where raw materials are available and then by conducting finishing operations at sites close to those of customers. which includes establishing a captive source of metcoke.5mtpa steel slab making facility. 1. 24 and 14% of the total sales of the division in 2005 respectivly. hot rolled and galvanised cold rolled products constituted 28%. Thailand’s largest steel company with 1. 31 December 2005). Vice President. Fort Mumbai.Long Products RP Singh. cold rolled steel. China. is setting up a metallic coating and painting facility at Jamshedpur (Jharkhand. steel wires Plants Australia.648 (2005) © SupplierBusiness Ltd 2009 306 . Tata Steel signed a joint-venture agreement with Iranian Mines and Mining Industries Development and renovation Organisation (IMIDRO) for setting up a 1. In December 2005. The new company based in Pune. managing Director T Mukherjee. Tata Steel and BlueScope Steel announced a 50:50 joint venture for the production of zinc/ aluminium metallic coated steel. NatSteel owns steel mills in Australia. pre-stressed concrete wires and strands. Vice PresidentKalinganagar Project Orissa AD Baijal. The acquired entities have a combind production capacity of 1. Joint-ventures In November 2005. Tata Steel was also made a partner for the Hormozgan Steel project. In 2004. Vice President.15m ton paint line at a capital cost of INR 9bn (€ 167. Philippines. India) with a 0.400 001 Tata Steel is a leading supplier of steel and ferro alloy products in India.Raw materials & Iron making UK Chaturvedi. The final amount is subject to concluding audit. Vice PresidentFinance Anand Sen.05) Employees 39. Millennium Steel supplies to construction and engineering steel (automotive) companies. 31 March 2005) (Year to 31. which has been in short supply during the past financial year. 28 February 2005). Tata Steel acquired 100% stake in Millennium Steel Company. Vietnam Sales INR 160. Deputy Managing Director Steel HM Nerurkar. Acquisition In February 2005.4m (€ 367.40m.The Indian Supplier Report Tata Steel Steel Address Tata Steel Limited Bombay House 24. The company is eyeing installed capacity of 15m tonnes per annum by 2010 to establish global scale and presence.70m.Flat Products Recent Developments Corporate strategy Tata Steel is working on an expansion program as it prepares for fresh competition in the country amidst rising steel prices.com Senior Officers RN Tata. painted steel and rollformed steel product and deliver pre-engineered buildings and other building solutions. Tata Steel also signed an agreement for partnering IMIDRO in an exploration and mining project for unexplored steel mines. The company has initiated several cost cutting measures. 11%. Total revenue increased from INR 120. The construction scheduled in two phases with the first phase establishing 6m ton per annum capacity. Also in September 2005. The first phase of the project shall have an installed capacity of 2mtpa. Australia.21bn (€ 792.8m tonnes per annum of coke and 55MW of power for consumption by Tata Steel. which is setting up a merchant cokery at Haldia (West Bengal. Tata Steel recorded sales worth INR 125.61bn (€ 2.62m ton in 2005 compared to 0.84bn.07m. 31 December 2004). Total export sales increased by 46% to INR 21. compared to previous year’s figure of INR 47. Tata Steel divested its 54.24bn (€ 2.8bn (€ 385. closing the books with INR 27.46bn (€ 326. however export revenues in 2005 were higher on account of higher realisations from ferro alloys.19%.04bn (€ 1. 31 March 2004).66MT in 2004.44.The Indian Supplier Report Development Corporation (WBIDC) under the name Hoogly Metcoke & Power Company Limited. 30 September 2005). 30 September 2005).74m. INR bn 34. Operating profit for the nine-month period was at INR 48. In November 2004.21bn (€ 903. India) with a capacity of 0.45m. INR bn 61. 31 March 2004) to INR 160. Divestment In 2004-05. 31 March 2005) in 2005.17m.0bn (€ 280. Net Profit rose by 99% to INR 34.42bn (€ 2. a change of 2.68m. INR bn 53.51MT in 2005 compared to 0.94bn. Tata Steel announced an expansion of its Jamshedpur facility for increasing the production capacity to 10m tonnes per annum from the present 5m tonnes per annum at a capital cost of INR 110bn (€ 2.95bn.74bn (€ 615. 31 December 2005) in 2005. Financial Overview During fiscal 2004-05.97m.3% in sale of steel products (by volume) owing to the closure of a blast furnace for the expansion program being undertaken by the company. Tata Steel inked a 50:50 joint-venture with Larsen & Toubro for establishing a deep water port in Orissa (India). Tata Steel holds 98% equity in the company.35bn.9% holding in Stewarts and Lloyds of India at a price of INR 25 (€ 0. Tata Steel announced the setting up of a green field facility at Kalinganagar (Orissa. 31 March 2005) compared to previous year’s export revenue of INR 15.21m. In October 2004. India). Tata Steel recorded a decline of 1. 31 March 2004).25bn. 31 December 2004).08% compared to previous year’s figure of INR 116.933 Profit Before Tax.66bn (€ 430. Tata Steel signed an MoU for setting up a 5mtpa green field integrated facility at Bastar (Chattisgarh. The supply of hot rolled. 31 March 2005) per share. 31 March 2005) in 2005. compared to previous year’s figure of INR 17. Steel exports also declined by 22% closing the books with 0. For the nine-month period ended 31 December 2005. Investments In September 2005. In July 2005. In June 2005.08bn. which is a global supplier of highgrade metallurgical coal. 31 December 2005). Tata Steel acquired a 5% stake in Carborough Downs Coal Project located at Queensland. India) with an installed capacity of 6m tonnes per annum.23bn (€ 510.51m tonnes in 2004.77 2005 Operating Profit. 31 December 2004) in 2004. INR bn 158.39m. The project has an estimated life of 14 years and approximately 58m tonnes of raw coal in the present scenario with an additional possibility of 100m tonnes of coal mining.88 Net Profit. Tata Steel announced a 12m-ton per annum steel plant project at Jharkhand (India) at a capital cost of INR 420bn (€ 7. Outlook Thi Year Gross sales. 31 December 2005) in 2005 compared to a net profit of INR 25. Net profit improved by 6. an increase of 8.74 © SupplierBusiness Ltd 2009 307 . cold rolled and galvanised steel to the automotive industry increased by 21% to 0. 68 0. € bn 1.07 329.94 539.81 2.59 Gross sales.46 0.95 217.12 2.36 23.done Automonitor search – done Autocar Pro search – done Google search (news + web) – done Press Releases.The Indian Supplier Report 2004 2003 2002 2001 Year 2005 2004 2003 2002 2001 119. € bn 2. annual reports.53 197.43 28. € m 953.57 17.89 14.14 Peer Group: Bhushan Steel Essar Steel Kalyani Steel Mittal Steel Mukand Steel Posco SWOT Analysis: Strength: ??? Weakness: ??? Opportunity ??? Threat: Colour key Yellow – more info needs to be collected Red – grammatical error Grey – comment.88 Profit Before Tax.53 Net Profit. act if necessary Checklist – Classification .97 108. € m 615. coking coal price hike Freight rate hike © SupplierBusiness Ltd 2009 308 .46 10.10 0.69 290..93 76.52 13.91 1.79 1.36 48. INR and EUR)– done Crude price hike Iron ore.62 8.00 17.57 Operating Profit.23 1.34 135.05 5.90 36. metallic scrap.07 77.32 0.92 4.21 97. company website: done Financial info – done SWOT – incomplete Competitor watch – done FOREX (all figures in original data. The Indian Supplier Report Researcher’s comments/ foot notes comments © SupplierBusiness Ltd 2009 309 . the company announced expansion of radiator production capacity to 800. Contracts TTR supplies radiators to the Tata Indica Vista program. Manager. TTR's customers include Ashok Leyland. Escorts. TTR offers complete services for engine cooling systems including design.com Senior Officers DS Gupta. 31 March 2005). oil coolers. General Motors India.The Indian Supplier Report Tata Toyo Radiators Engine cooling systems Address Tata Toyo Radiators Limited Plot#1. In 2003.25% stake) and Mitsubishi Corporation owning the remaining 8. TTR supplies radiators to the Tata Winger program. Lucknow (Uttar Pradesh) and Jamshedpur (Jharkhand) to supply components to Tata Motors and Ashok Leyland. Wagon R and Versa models. a part of the TACO group.14bn (€33. fans. In 2003. TTR supplies radiators to the Tata Magic and Tata Ace programs. condensers. Swaraj Mazda. In 2002. CEO Salil Malvankar. heater cores. fan motors Plants Lucknow (Uttar Pradesh).25%) and Mitsubishi Corporation (8. Survey# 235/245 Hinjewadi. Managing Director Mandeep Bhalla. engineering and manufacturing. The company's current priority is to reduce costs as price of inputs such as aluminium and steel have risen sharply in the past year. In anticipation of future demand. The company seeks to increase its supplies to the commercial vehicle segment and exports by acquiring new customers while its passenger car supplies grow organically. EGR coolers. Cummins. ToyoRadiator (40.75%). New Holland. Eicher Motors. Over a period of time. John Deere. Toyo Radiator has contributed the technology in aluminium heat exchangers and Mitsubishi the technical know-how for aluminium non-ferrous products. Vice President. Tel: +91 20 5652 4100 Fax: +91 20 2293 2196 Internet: http://www. is a leading supplier of aluminium radiators to the domestic market. TTR began supply of heater cores to Subros for fitment on Maruti Suzuki Alto. TTR announced its plan to establish assembly lines in Chennai (Tamil Nadu). Joint-ventures TTR is a three-way joint-venture between Taco (51%).000 units per annum from 600. TTR began supplies of radiators to Mahindra & Mahindra.tacogroup. Taluka Mulshi Pune.000 units in 2005 investing INR250m (€4. Subros. AL 2516VRL and AL 1616 - Products Aluminium brazed heat exchangers: Radiators.43m. Jamshedpur (Jharkhand) Sales INR2. TTR commenced supplies of engine cooling systems to Ashok Leyland for three new models (AL 2516 Cargo.Operations Recent Developments Corporate strategy Tata Toyo targets a 25-30% growth in sales per annum for the next couple of years on various factors.PPC & Logistics KP Kapadia. Punjab Tractors. the company expects more than 60% of sales from the commercial vehicle segment along with the corresponding demand for turbocharger fitment which will grow the sales of the company's heat exchangers. Tata Toyo Radiator (TTR) is a joint-venture between Taco (51% holding) and Toyo Radiator Company of Japan (40. Pune (Maharashtra).411 027 Maharashtra India Tata Toyo Radiators. 31 March 2008) Employees c. 250 (2008) © SupplierBusiness Ltd 2009 310 . Force Motors. Investments In 2006. Its main customer is Tata Motors. TAFE and Tata Motors.75% of the company. Manager – Marketing Arvind S Alur.8m. Honda Siel Cars. intercoolers. Mahindra & Mahindra. TTR has looked at alternate sources of supplies like China and announced plan to move its facilities closer to large customers in order to reduce transport costs of bulky heat exchangers. In 2002. validation. The company is developing downsized and more efficient radiators as opposed to larger ones. New Product Developments Tata Toyo has in-house design and engineering capability consisting of prototype development. the company won a contract from Rising Sun Taiwan for five new cores for supplies to Honda. product/system testing. The company is adding value for its customers by developing innovative products like smaller sized radiators with increased efficiency. © SupplierBusiness Ltd 2009 311 . TTR was accredited with TS16949 certification. proprietary software for thermal design of heat exchangers and CFD analysis. TTR is expected to grow with this change and the demand in the commercial vehicles market which will contribute to over half its sales. In July 2005. Certification In 2006. estimated sales of Tata Toyo Radiators were INR2. trends like demand for high power engines are expected to increase the fitment of turbo chargers and heat exchangers. In 2002.14bn (€33. TTR announced implementation of Six Sigma.8m. TBEM and ERP systems. 31 March 2008). Kaizen. The company has designed and developed over 150 heat exchangers in the last six years which are under supply contract now. TTR won a contract from Cummins to supply engine cooling systems. Outlook Aluminium radiators are substituting brass radiators. In the segment. Financial Overview In the financial year ended 31 March 2008.The Indian Supplier Report H BS II Hino). GM and Chrysler models. The company is privately-held and does not publish its detailed financial report. 03. rear side member. tailgate for Hyundai Santro and Hyundai Accent. radiator support. hood. Ford India. 1. fender apron assembly. complete quarter. Senior General ManagerPAC TS Mohanasundaram. Senior General Manager. TSAL has initiated a ‘020’ programme under which it plans to reduce rejection rate to 0 ppm. Tel: + 91 4111 256032 Fax: + 91 4111 256016 Internet: http://www. 60 for Hyundai Accent and 25 for Hyundai Getz.jbmsw. Additionally TSAL has undertaken TPM. fuel-filler assembly.4m. Sriperumbudur Taluk Kacheepuram Dist Tamil Nadu. TQM and Six Sigma initiatives to strengthen its zero ppm focus. jigs. TSAL supplies to Ashok Leyland. cowl assembly. TSAL invested INR 100m for adding fresh set of heavy press lines. TSAL imports some components from Korea and integrates them with the ones it makes before they are supplied to HMIL on JIT basis. TSAL plans to hive off its light press lines to a vendor in order to reduce rejection rates. The company has been able to cut rejection rates from 2. Infrastructure Products Centre and rear member. it has initiated an exercise to tap other OEMs. Technical Automotive Stampings Limited (TSAL) commenced operations in 1998. On an average TSAL supplies 150 times a day to the HMIL plant. Nearly 97% of the company’s production is supplied to HMIL. have shown interest in sourcing sheet metal components from the company.602 105 India Incorporated in 1997 as JBM SungWoo. tailgate and tools Plants Tamil Nadu Sales INR 3.MPC Recent Developments Corporate Having established a firm ground. panel assembly tail gate.The Indian Supplier Report Technical Stampings Automotive Sheet metal pressings & assemblies Address Technical Stampings Automotive Formerly JBM SungWoo Ltd G17-19. hood. Sipcot Industrial Park Irrungattukottai. TSAL also supplies false panels to Ashok Leyland. TSAL supplies 49 sub-assemblies for Hyundai Santro. complete panel assembly rear floor. TSAL is a leading supplier of sheet metal components to Hyundai Motors India. As the company tries to diversify its customer base from being a dedicated Hyundai vendor. JBM SungWoo was formed as a three way joint-venture between JBM Tools (50%). front and rear rail assembly. Investments In 2007. Contracts Ford India sources sheet metal assemblies for front and rear seats of the Ford Fusion from TSAL through Tata Johnson Controls. and reduce the production cost by 20%. Joint-ventures TSAL is a 50:50 joint-venture between SungWoo Hitech. The company is a part of Tata Auto Components group. Korea (31%) and Mitsubishi (19%). Korea and TACO. SungWoo Hitech. oil pan. dash panel. GM India. panel assembly hood. dash panel. Over the next few years TSAL targets a 20% growth in sales on an annual basis. centre pillar.com Senior Officers B Venkalarami. Subsequently SungWoo Hitech bought out Mitsubishi in the joint-venture while TACO bought out JBM Tools’s stake in the entity. package tray. CEO Kim Moon Kil. rear side MBR. double the production. Hyundai Motor India and Tata Johnson Controls. TSAL supplies Battery tray assembly. radiator support. Going ahead. Most of the lines are being earmarked for catering to increased requirements of Hyundai. TSAL began operations as a dedicated supplier to Hyundai Motor India Ltd (HMIL). Additionally. centre pillar.800 ppm in 2003-04 to below 100ppm in 2006. 31 March 2008) (Year to 31. Mahindra–Renault.85bn (€61.050 (2007) © SupplierBusiness Ltd 2009 312 . Further.08) Employees c. dies. TSAL eyes export opportunities for small assemblies. especially those located in the region. it plans to increase its business with other OEMs. eight 200/250 ton mechanical presses and four hemming presses. two milling machines. this was managed by the OEM. The company has integrated welding facilities like automatic nut feeders (16). TSAL generated sales worth INR 3. with increasing volumes coming from HMIL. TSAL has grown with HMIL and going ahead. © SupplierBusiness Ltd 2009 313 . TSAL has one 1000 ton mechanical press. projection welding (19).85bn (€61. ISO-14001 and OHSAS 18001 certified. HMIL supplies steel to the company which is purchased from Tata Steel under special terms. Financial Overview During the financial year ended 31 March 2008. riveting machine (1). The die maintenance shop has two radial drilling machines. two arc welding machines and one welding rod heater. one lathe machine. 31 March 2008). two 500 ton mechanical presses. two 600 ton mechanical press. one surface grinder. stationary spot welding (18). CO2 welding (14). TSAL will face pricing pressures in event of raw material price increase with its new customers while in the case of HMIL. three 400 ton mechanical press.4m. portable spot welding ‘X’ gun (66) and stud spot welding machine (7) for welding assembly parts.The Indian Supplier Report Presently TSAL has two Light Pressure Lines (LPS) and three Heavy Pressure Lines (HPS) for the production of pressed panels. Hence TSAL sales comprise only of value addition. But. Outlook TSAL positioned itself well for growth by aligning with Hyundai Motors. the company is poised for growth. portable spot welding (135). portable spot welding ‘J’ gun (102). Certifications TSAL facility is TS 16949-2000. TSAL is a privately held entity and is not obliged to publish financial statements. Additionally TSAL has installed two heavy industries spot welding robots (4 guns) and an under shuttle to facilitate WIP movement. Now. one 300 ton mechanical press. The company was established as Tata Timken in 1987 as a joint-venture between TELCO (now Tata Motors) and Timken (USA).Manufacturing Soumitra Hazra. 590 (Year to 31 December 2007) © SupplierBusiness Ltd 2009 314 .76m. The company generated 65% of its sales from the domestic market in 2007. Eicher Motors. Bhutan.Agrico Jamshedpur-831 009 India Timken India (TIL) is a leading supplier of tapered roller bearings to the domestic automotive industry. Timken announced the construction of a greenfield manufacturing facility at Chennai for the production of bearings. dampening the company’s export objectives. The company generates sales of about INR210m (€3. 31 May 2006). In 2003. In May 2006. Tata Timken received a license to market and service Timken's products in Bangladesh. Nepal and Sri Lanka. Tamil Nadu Sales INR 3. The company exports its products to Australia. In 1999. Tel: +91 657 2152 657 Fax: +91 657 2210 117 Internet: http://www.P. Timken India supplies pinion tail and head bearings to Tata Motors as a Tier-2 Plants Jharkhand. Timken had taken up production of certain products exclusively for exports. Contracts Timken India has the contract to supply pinion tail bearings and other bearings to all Mahindra & Mahindra models.07) Employees c. 31 December 2004) annually from this project. The centre is the second biggest research base for Timken worldwide. This product is exclusively for the export markets. Finance Controller & Company Secretary Products Recent Developments AP cartridge roller bearings. Timken contributed to the JV with technical know-how and supplied machinery from its American plant. The line has an installed capacity of 0. Timken commissioned a new large size cup line at the Jamshedpur facility with an investment of INR 45m (€ 0. South Africa and the USA. Investments In 2006.76m. railways and aftermarket sectors. Brazil.52m. Director. In 2004.80m. Further. 31 December 2004). 31 December 2007) (Year to 31. Director. Europe.41m. Exports to USA. needle roller bearings.5m (€ 27. In May 2006.timken. Timken commissioned the first phase of DE cones manufacturing line at a net investment of INR 24.39bn (€ 53.12. Timken India added a fresh line for production of 8” tapered single cones at a price of INR 16. Timken India undertook a project for manufacturing double extended cones at an investment of INR105m (€ 1. Force Motors. Karnataka as a wholly owned subsidiary of Timken India. the company was renamed Timken India Limited after Timken USA bought out Tata in the venture. off-highway. India. which forms the largest export destination for the company has declined over the past two years due to decreasing demand.5m (€ 0. Hindustan Motors. 31 May 2006). the company imports other type of bearings from Timken's global facilities and supplies the industrial.5m units per annum. Timken India's automotive customers include Ashok Leyland.O. For the same reason the company is investing in strengthening its research capabilities in the country.The Indian Supplier Report Timken Bearings Address Timken India Limited Bara. Deputy Managing Director K Sthanpati. tapered roller bearing Corporate strategy Timken India is working towards achieving a status of global sourcing hub for the Timken group.com/india Senior Officers GW Robinson. Timken is pursuing a strategy of being a complete friction management solution provider. Chairman SK Sinha. Timken Engineering and Research India was set up in Bangalore. Mahindra & Mahindra and Tata Motors. The company offset the decreasing sales in the US by increasing domestic demand for bearings. Also in 2004.Projects AK Das. 31 December 2004). In a bid to widen its reach in the automotive market.69m. 9 231. Tatamobile and 207 models. Beaver.91 2.56 44.5 626. for Sumo.91m. Timken India supplies Force Motors for the Matador model. Profit Before Tax decreased by 4% to INR 560.3 330.55 Profit before tax. Cheetah.53 5. December 2006) in 2006. INR m 560.87m.67 2. Year Gross sales. Several contracts are Tier-2 through Automotive Axles.5 529. Comet. 31 December 2007) an increase of 2. € m 10.8 329. €m 53.31bn (€ 56.9 587.55 6.00 11. Timken’s export plans have been dampened.6 430.39bn (€ 53.80m.91 10. However growth in domestic demand and an increased product profile have helped in widening Timken’s reach in the automotive bearing market and fuel a steady sales growth. Viking and Taurus models.4 2007 2006 2005 2004 2003 Year Gross sales.9 698.75 10.80 56.41% from a figure of INR 3. Slackened demand in the North American market led to lower export sales while growth in the domestic market was slower than anticipated.80 Net Profit.08 7.54 4. Timken India generated sales worth INR 3.31 2. Financial Overview During the financial year ended 31 December 2007.09 9.5 508.80 40.8 Net Profit. INR bn 3.3 348. Timken India supplies Ashok Leyland various bearings for Hippo. Stallion.87 54.32 Operating profit.93 8. © SupplierBusiness Ltd 2009 315 .The Indian Supplier Report vendor through Spicer India. €m 8.65 12. € m 5. The increase in number of products is also attributable to research done in-house at its Indian development centre. Tusker.06 2007 2006 2005 2004 2003 Outlook With a drop in demand from the US Auto market.39 3.6 600. INR m 374 381. Safari.30 Operating profit.9m (€ 8.54 5. INR m 670. 31 December 2007) in 2007.8 Profit before tax.94 6. Spacio. Sales & Export Tube Investments of India (TI) is the flagship company of the Murugappa Group. fine blanking. The rollforming business produces roll-formed car doorframes. TI is the largest manufacturer of precision tubes in India with a 60% market share. cycle. Bajaj Auto. The division operates three facilities.37m. Hyundai Motor India. The division contributes around 17% to the total sales of the company. Gujarat. In the strips business the company has a dominant position in Southern India. Within the chains segment. drive and cam chains for motorcycles. Employees c. stampings. Marketing & Business Development JJ Kapoor. steel tubes (ERW & CDW) Plants Engineering division: Maharashtra. Maruti Udyog.06bn (€364. Engineering division: of the company involves production of welded precision tubes and strips with special emphasis on Cold Drawn Welded (CDW) and Electric Resistant Welded (ERW) tubes both of which have large automotive applications. Senior Manager. The company has also reorganised its tubes and chains business and is increasing its international presence. The division contributed 48. Managing Director U Suryanarayan. Tamil Nadu Metal formed productsdivision: Andhra Pradesh. Jay Bharat Maruti. Metal formed products division: This division manufactures stampings (chain). TI is the market leader in the roll formed car doorframes and automotive chains segments with 57% and 35% market share in these segments respectively.40% to the sales of the company. eliminated the production of low margin products. Punjab. Honda Motorcycle & Scooter India. TI classifies its automotive operations under engineering and metalformed products. galvanising drums. 31 March 2008) Recent Developments Corporate strategy In recent years.com Senior Officers MA Alagappan. The company supplies precision steel tubes and strips. TVS Motor Co. The company has a 37% market share in the automotive chain business in India. SS rails. car sashes. Chairman Adhiraj Sarin. Over the past few years the company has been restructured to focus on automotive business. Delphi Automotive Systems. TI has a domestic client base comprising Ashok Leyland. in certain cases. one each in Chennai (Tamil Nadu. In the fine blanking business. automotive and industrial chains and bicycles. bearings. India) and Shirwal (Maharashtra. Visteon India and Yamaha Motor India. India). channels. cold rolled strips. Fine blanking operations largely supplement chain production. The company has announced three strategic plants in Pune. Maharashtra Sales INR 23. Haridwar and a new plant for supplying the Tata Nano program. Gabriel India. The Chennai (Tamil Nadu. The company is also the largest manufacturer of roll formed car doorframes with a 60% market share. The company supplies automotive chains to OEMs and aftermarket. Tata Motors. Deputy General Manager. India).734 (2008) © SupplierBusiness Ltd 2009 316 . Mohali (Punjab. TI divides its business into industrial and automotive chains. TI manufactures sprockets and power transmission-related products. fine blanked components.The Indian Supplier Report Tube Investments Metal formed and engineered products Address Tube Investments of India Ltd Dare House 234. India) based facility acts as an export oriented unit. Munjal Showa. Haryana(2). NSC Bose Road Chennai 600 001 Tamil Nadu India Tel: + 91 44 5217 7770/ 71/ 73 Fax: + 91 44 5211 0404 Internet: http://www. Mahindra & Mahindra. Korea for doorframes. Products Car door frames. General Motors India. Tamil Nadu(2). car doorframes. chains and general engineering.tiindia. Lucas TVS. UK for doorframe production. Tube Investments has strategically added higher value added products and reduced its dependence and. Strips comprise a range from sub 350mm to 1000mm width with application in automotive. 2. Joint-ventures TI shares a technical agreement with Edward Rose. The company also has an agreement with Dong Won. This strategy has paid off with several new orders from leading OEMs. sheet metal components. impact beam. Hero Honda Motors. barrels. starter motor frame (deep drawn). Royal Enfield Motors. cold roll-forming (car doorframes) and blanking. € m 17.72 234. India) based engineering division Export oriented Unit was certified with TS 16949 status.26bn (€349. Profit after tax decreased sharply from INR 1. India) plant was accredited with TS16949 status.061.09bn (€17. INR m 1095.The Indian Supplier Report Additionally.8 Profit Before Tax. In 2005.23 31. 31 March 2008). TI registered a 49% decrease in Profit Before Tax at INR 1. India) based engineering facility operated by TI has been accredited with ISO 14001 certification.06bn (€364.8 1715.97 276. Also in 2004-05.99 29. 31 March 2007) in 2007.53 Profit Before Tax.7 1800. Tube Investments started a chain manufacturing plant at Haridwar to supply Hero Honda.7 2456.1 20.4 15. TI exports precision tubes to Europe. Financial Overview During the financial year ended 31 March 2008. In 2005. Also in 2008.93 294. TI won the sole supplier contract of doorframes to the GM Chevrolet Tavera program from its Halol facility. €m 37.2m ton steel plant in the state.633.262. The company is also setting up a plant for the Tata Nano project however the location of the unit is yet to be finalised.4 Net sales.5 824.93m. INR m 695.37m. In 2008. €m 10.7 Operating Profit.9 1829.3 3073.41 Outlook © SupplierBusiness Ltd 2009 317 . TI’s Shirwal (Maharashtra. North America and South East Asia.37 349.573. TI’s Chennai (Tamil Nadu. Also in 2005. INR m 23. TI entered into an agreement with the Government of Orissa for setting up a 1.63 34. TI is the supplier of door frames to the Tata Indica Vista program. In 2005.06 17.5 2181.8m (€10.8 945. 31 March 2008) a 13% increase compared to sales of INR 20. 31 March 2007) in 2007 to INR 695. TI commenced supplies of strips to China. The company supplies doorframes for Hyundai Santro and Hyundai Accent models. TI became the sole supplier of doorframes to the Maruti Omni program.47 57. TI registered sales worth INR 23. TI has an agreement with Tsubakimoto Chain Co.72bn (€29.44 15.8 15.87 25.31m. UK. The Mohali (Punjab.76 59.74 22. Contracts TI has the single source contract to supply door frames for the Tata Nano.67 Net Profit. The company shares a technical collaboration with Wagon Automotive. Investments In 2008. TI supplies door frames for the Hyundai i10 and i20 programs.68 45. The drop in earnings was attributed to lower sales to many two wheeler programs. €m 364.5 1366.841. The plant was also awarded ISO 14001 status. TI supplies doorframes for the Maruti 800 model.9 Net Profit.3 985. Japan for chain production. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales. INR m 2389.33 17. Tube Investments opened a new plant to supply door frames to the Tata Indica Vista program.63m.9 12.87 Operating Profit.99m.3 1261. Certifications In 2005.7 3443.31 37. 31 March 2008) in 2008. The company is now exploring several other products within the purview of its metals and engineering business. But this made TI increase its product range to de-risk its business. The 10% drop in two wheeler sales in 2008 resulted in a sharp decline in earnings. © SupplierBusiness Ltd 2009 318 . A balanced product mix will help the company in steady growth.The Indian Supplier Report TI depends on the automotive sector for 80% of its revenues. TVS Srichakra announced an INR250m expansion program for increasing installed production capacity from 11 million tubes and tyres a year to 15 million tubes and tyres per annum. TVS Srichakra has been concentrating on increasing its revenues from the aftermarket and exports. TVS has a network of 2050 dealers and 27 warehouses in India.tvstyres. Export turnover showed an increase of 20% in 2007-08. Africa.The Indian Supplier Report TVS Srichakra Tyres Address TVS Srichakra Limited TVS Building 7B. achieving gross revenues of INR4. multipurpose tyres and vintage tyres.39m. TVS tyres supplies to the Bajaj Pulsar program. farm and implement tyres.5bn TVS Group.467 Fax: + 91452 2420 466 Internet: http://www. 31 March 2007) in the previous year. TVS Srichakra has a strong presence in the two-wheeler segment. compared to a figure of INR105.05% in sales. Plants Madurai (Tamil Nadu. © SupplierBusiness Ltd 2009 319 . 31 March 2007) in 2007. TVS tyres supplies to the Bajaj Platina program. with sales reaching INR900m (€14. 31 March 2008) compared to previous year’s figure to INR4. TVS Srichakra has announced a capacity expansion program to cater to increased demand from South African and South American markets. TVS tyres supplies to the TVS Star City program. Europe. TVS Srichakra recorded a growth of 10.02m (€1. Managing Director Recent Developments Products Tyres Corporate strategy In recent years. Contracts TVS tyres supplies to the TVS Flame program. 31 March 2008) against INR68. the company manufactures 11 million tyres annually. TVS tyres supplies to the TVS Apache program. Tel: + 91 452 2420 461 .06m (€2. TVS Srichakra has leveraged supply opportunities offered by its sister concern.82m (€1.com Senior Officers S Narayanan. Chairman R Naresh. South America and South East Asia. TVS Motors has been steadily losing market share and as a result.625 001 TVS Srichakra is a part of the US$2. 31 March 2008) in 2008. The company has been accredited ISO 9001 and ISO 14001 certification along with a TPM excellence award. 31 March 2008). The TVS Group and associates holds 39. TVS Motors to establish itself as a strong market player. 31 March 2008) Employees NA Financial Overview During the financial year ended 31 March 2008. The strategy is underpinned by the company’s target of reaching a 60:40 ratio between domestic sales and exports. However. a major part of which is attributable to its relationship with TVS Motors. TVS Srichakra also exports its products to USA.83m. Despite these adversities. TVS tyres supplies to the Hero Honda Passion program. The company manufactures industrial pneumatic tyres.39m. Marketed under the badge of TVS Tyres.58bn (€72. India) (2) Sales INR 4.47m. Profit After Tax improved by 36.58bn (€72. TVS tyres supplies to the Hero Honda Super Splendor program.17m.16bn (€71. 31 March 2007) in 2007. Executive Vice Chairman Shobhana Ramachandran. Incorporated in 1982. South Africa. TVS Srichakra generated 17% of its sales through exports. West Veli Street Madurai.90m.5% to INR92. The company booked Profit Before Tax amounting to INR137.17m.41% equity in the company.2m. Investments In March 2008. In 2007. Unforeseen volatility in the prices of natural rubber and petroleum derivatives had trimmed profit margins for the company in the last two financial years and the company now faces stagnating sales. The company is also keen to increase its supplies to Bajaj Auto and Hero Honda to the extent to achieving a net 20% market share for two wheeler tyres from the present 13%. skid steer tyres. TVS tyres supplies to the TVS Scooty program.68m (€1. INR m 137. € m 1.987.68 61. INR m 92.59 1.19 78. with improved shipments to Bajaj Motors and Hero Honda.18 43.581. € m 5.02 36.82 2.52 Operating profit. € m 2.6 68.82 267. © SupplierBusiness Ltd 2009 320 .17 0.03 Operating profit.303.94 4. €m 72.2 150.83 1.931.67 3.88 151.33 Profit before tax.34 Gross sales.39 71.82 68.41 2.The Indian Supplier Report Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales.12 Profit before tax.35 4.74 1.06 105.163.67 105. INR bn 4.14 1.59 35.63 2.17 1.29 Outlook TVS Srichakra has been successful in lowering its dependence on affiliate TVS Motors.90 54.99 178.39 1.68 0. The company has also made significant improvement in its aftermarket and export shipments as two wheeler registrations have been stagnating.97 Net Profit. INR m 338.47 1. The company will have to hasten its move away from TVS and to Bajaj and Hero Honda as TVS sales have not kept up with the growing Indian market while Hero Honda has widened its lead as the market leader.40 2.5 41.96 Net Profit. In 2003. intake manifold. This makes supplies to diesel programs of OEs which do not have Japanese roots difficult. Sales Recent Developments INR5.. will help Ucal in re-establishing profitability in its businesses © SupplierBusiness Ltd 2009 321 . However. Chennai-600002 India Ucal Fuel Systems is a part of the Ucal Group.transmission components. throttle body. These machines are equipped with hydraulic. It primarily supplies to the domestic two-wheeler industry.. Carburettor sales are now restricted only to certain two wheelers and three wheelers. TVS Motor Company and Yamaha Motor India Limited. Mikuni Corporation Japan.The Indian Supplier Report Ucal Fuel Systems Engine Management Systems Address Ucal Fuel Systems Limited Raheja Towers. Hero Honda Motors Limited. Maruti Udyog Limited. Ucal has also ventured into offshore markets lately. Presently. pneumatic and electrical PLC control systems.Marketing Products BS carburettor. carburettor assembly. Multi Point Fuel Injection system component.com Senior Officers S Muthukrishnan. Ucal Machine Tools Limited: The machine tools division is involved in the design of intricate multi-cavity pressure die-casting dies for die-cast products of carburettors. Tel: +91-44-28604795-98 Fax: +91-44-28604788 Internet: http://www. chain tensioners. mechanical fuel pumps. TH carburettor.12. as a company with operations in the field of fuel management solutions. Ucal further owns two subsidiaries: Ucal Polymer Industries Limited: Ucal Polymer was established for manufacturing rubber-bonded parts for automotive applications. plastic moulded parts Plants India: Gurgaon (Haryana) (1).35m fuel taps per month. fuel system components. electronic sensor housings. Hero Motors. oil pumps. General Manager . fuel pumps and several engine components.81bn (€91. rocker assembly arm. fuel rail. 900 (2008) Corporate strategy The phasing out of the carburetor due to emission norms has led to a strong change in Ucal’s business model. Incorporated in 1985 by Carburettors Limited. With the implementation of stricter emission norms OEMs have phased out carburettors in case of four-wheelers. Joint Managing Director T Ravi. 31 March 2008) (Year to 31. this market is cluttered with three leading global vendors in the diesel injectors space and a smaller presence of local manufacturers in the petrol injection systems. electronic throttle valve. In recent years India has adopted stricter emission norms following which Ucal entered into production of MPFI hardware products such as throttle body. Birla Yamaha Limited. Vice Chairman and Managing Director Hiromi Iida. carburettor with coasting richer system.93m. 177. Subsequently Ucal tied up with Mikuni Corporation. the Company commenced production of electric throttle valve and allied products exclusively for the global market. LML Limited. Delta Wing-Unit-705.. The company is also engaged in the manufacture of aluminium and zinc alloy die-casting components. Honda Siel Power Products. ride control components. air filter assembly. Anna Salai. in-tank electric fuel pump. electronic throttle body. Chairman K Jayakar. boring. fuel injection systems. delivery pipe with pressure regulator and high pressure fuel filter. The Company commenced production of rubber-bonded components. Hyundai Motors India Limited. fuel filter. capable of machining complicated castings for various operations like drilling. in-tank fuel electric pump. fuel filters and critical sub-assembly parts of fourwheeler and two-wheeler carburettor components. Kinetic Motor Company. secondary air suction valve. Ucal also supplies parts for fuel-injection systems. single barrel side draught carburettor. which makes it a principal vendor to the Suzuki Powertrain project.ucalfuel.2008) Employees c. Mikuni holds a 26% equity in the company while Carburettor Ltd holds 23% stake in Ucal.delivery pipe & pressure regulator. Tamil Nadu (2) Ucal Fuel systems clientele include Bajaj Auto Limited. one of India's largest manufactures of carburettors and mechanical fuel pumps for the domestic automotive industry. VM carburettor. The company is also engaged in the design and manufacture of Special Purpose Machines. The recent mandate in favor of Ucal. which are fitted into secondary air suction valves. Ucal has a production capacity of 60. Japan as a technical cum financial collaboration.000 oil pumps and 0. Royal Enfield. Ucal has further diversified into oil pumps. This has led to introduction of fuel injector systems and allied components. tapping and reaming. This has made a considerable shuffle in the business set up of Ucal. fuel pumps. Pondicherry (1). 47 494.33 220. 31 March 2007) in 2007.47m (€5. sub systems.44 361. 31 March 2007) in 2007.52 -244. 31 March 2008) The plant will supply 0.25 Net Profit.25 Profit Before Tax.08bn (€122. In 2003. Ucal announced the setting up of a greenfield unit at Bawal. (Japan) for the production of fuel injection parts.7 -343. Under the arrangement the company manufactures rubber tip needle parts to be fitted in two-wheeler carburettors manufactured by Ucal. UFSL started electronic throttle valve for the export market. € m -3. €m 91.80 3. Ucal registered a net loss for the second year in a row with losses in the fiscal 2008 recorded at INR441. INR m 54.41m.98m.047. Ucal has been keen to leverage its strength in aluminum diecasting for making significant export initiatives.19 3. Joint-ventures Ucal shares a technical and financial collaboration with Mikuni Corporation.61 439.32 500. 31 March 2008). Amtec manufactures fuel system components like transmission components. INR m -215.9% decrease in sales to INR5. rocker assembly arm. Mikuni holds 26% equity in the company. Contracts UFSL received a supply contract for carburettors from Paykan.36m. Haryana for supplying to Suzuki Powertrain at its diesel engine unit at Manesar.35m oil pump units and 0.28 Operating Profit.86 Profit Before Tax. UFSL acquired 100% equity in Amtec Precision Products. Ucal entered into collaboration with Orbital Inc. Acquisitions In June 2005. The company has been exporting fuel pumps and other components to the USA through distributors and other partners.7m (€3. Iran.51 377. 31 March 2008). Pre tax loss for the same period was at INR215. Year 2008 2007 2006 2005 2004 Year 2008 Gross sales.25m manifolds per annum to Suzuki Powertrain. air suction valve and fuel pumps.041.52m (€6. The company is using Amtec to diversify product base and use the marketing infrastructure of the company to improve offshore sales. 31 March 2008) from INR7.57 439. ride control components. Australia for development of direct injection systems. INR m 5.21 Gross sales.98 © SupplierBusiness Ltd 2009 322 .83 3.74 573. Ucal is investing INR 360m (€5.181. Financial Overview In the financial year ended 31 March 2008. Ucal reported a 17. UFSL supplies MPFI parts to the Hyundai Santro program in India.57 7. electronic sensor housings. The company is a secondary supplier of oil pumps to the production program with a 30% share in the business.085.93m. compared to a pre tax loss of INR343.81bn (€91. Ucal has set up an additional line with test rigs for supply of oil pumps to the Mahindra Scorpio. USA making it a wholly owned subsidiary of UFSL.93 Operating Profit. plastic moulded parts for the North American market.41 Net Profit. Investments In December 2007. UFSL supplies CD Carburettor for Bajaj Pulsar program. INR m -441.01 257. In 2000. Certifications UFSL has been accredited with QS 9000 status.818.93m.The Indian Supplier Report which has been losing money with change in technology and the presence of global players in India. € m 0. UPIL entered into a technical collaboration with Shoei Corporation (Japan) for making rubber parts for various applications.57 684.69m. air filter assembly. €m -6. 32 56.81 3. © SupplierBusiness Ltd 2009 323 .71 -5.81 12.21 6. Bosch and Delphi have bagged long term contracts either by a follow through source mechanism or by developing engine specific products as in case of Mahindra and Tata Motors.93 9.21 -4.22 7.75 56.86 10.02 4.21 Outlook Ucal had indicated its move towards the diesel injector systems market three years ago. In this timeframe global giants.74 8. Denso.40 8.56 8.36 56. Aluminium die cast exports could also help Ucal in improving export revenues however the current financial turmoil the chances of any significant OE orders look bleak. Ucal’s diesel injector supply capability will mostly be directed towards Suzuki and Nissan.The Indian Supplier Report 2007 2006 2005 2004 122. polyurethane foam seat assemblies. Honda Motorcycle & Scooter India. head lamps. multi-layer plastic sheet extrusion. The company classifies its operations into four divisions: Polymer division: has seven manufacturing facilities of which three are in Aurangabad (Maharashtra) one is in Gurgaon (Haryana). General Motors North America. Vice President. The facilities come under group companies Varroc Engineering and Varroc lighting. Varroc caters to 40% of Bajaj Auto’s lighting systems requirements. MIDC. Vice President (Operations) Polymer division MR Venkatraman. rubber and PVC extrusion. electrical and engineering components. three in Aurangabad (Maharashtra) and one in Pune (Maharashtra). tail lamp and wiper motors Plants India: Haryana. and Yamaha Motors India. Poland Varroc group consists of the following companies: Durovalves: was set up in 1998 as a part of the engineering arm of the Jain group. Aurangabad. Varroc Lighting: is classified under the electrical arm of the company. Gabriel. Varroc was founded in 1990 by the Jain group as a manufacturer of engineering plastic injection moulded components for Bajaj Auto and white goods producer. electrical and engineering businesses. Mahle India Filter Systems. Maharashtra (14). Tata Johnson Controls Automotive. The company rapidly diversified to become the leading processor of plastics with multi-location. Piaggio (Italy) and Scarpa & Colombo srl (Italy). 31 March 2008) Employees c. crank pins. CDI. Group Vice President Business Development SN Patil. The facilities come under group companies Varroc Engineering. injection moulded plastic components. Tel: +91 240 2556227 Fax: +91 240 2564540 Internet: http://www. Maharashtra – 431136. reed valve regulators. and seats. Fiat India. Varroc generates nearly 95% of its sales come from the automotive industry.com Senior Officers Naresh Chandra Jain.6m. Videocon.varrocengg.The Indian Supplier Report Varroc group Diversified automotive supplier Address Varroc Engineering Pvt Ltd. multi-division operations. Waluj. manufacturing plastic and rubber components. The company is a major supplier to Bajaj Auto. Tata Toyo Radiator. starter motor. Maharashtra Scooter. Vice President (Operations) Mettalic division Nagesh Nadig. one in NOIDA (Uttar Pradesh) and two in Pune (Maharashtra). blinkers. rear view mirrors. Mahindra & Mahindra.000 (2008) Recent Developments Corporate strategy In the recent years. cold forged components. India Varroc is a diversified automotive supplier with interests in plastics and rubber. Lear Seating. Among Indian suppliers. Vice President (Operations) Electrical Division Products AC generator. PU foam moulding. Trading division: Varroc Group also has a trading division with offices in Aurangabad (Maharashtra) and New Delhi. rectifier units. Varroc’s customers consist of Delphi India. Metallic division: Have four plants. Uttar Pradesh Global: Italy. engine valves. 3. Varroc’s OE clientele include Bajaj Auto. E-4. Tata Motors. Lombardini. Peugeot (France). Electrical division: has manufacturing set ups in four locations of which two are in Pune (Maharashtra) and two in Aurangabad (Maharashtra). The company generates 55% of its sales from Bajaj Auto and 25% from passenger car OEMs. Durovalves India and Varroc Exhaust Systems. Uttaranchal. The international OEM’s include Lombardini (Italy). Varroc Trading: is the trading arm of the company. multiplayer sheet plastics extrusion. Moldcraft (Hindustan): was established in 1995 as a plastic injection molding and multi layer sheet extrusion facility Varroc engineering: has an interest in polymer.Finance PC Rajagopal. chairman Tarang Jain. It produces a range of valves and crank pins with automotive applications. Managing Director Ashok Chandak. LML. Sales INR 20bn (€317. Tata Ficosa Automotive Systems. Varroc has entered the electrical and © SupplierBusiness Ltd 2009 324 . Royal Enfield Motors. The facilities are run under group companies Varroc Engineering and Moldcraft Hindustan. Endurance Systems. rocker panels. The company generated sales worth INR 700m (€ 12. 31 March 2007) to scale up its existing operations across all verticals. development and production of bumpers. Varroc entered into a technical alliance with Delphi. The company has expressed desire to export the products to Europe at a later stage however no concrete decision has been taken.I. Varroc shares an alliance with Mollertech SAS. A greenfield facility was set up in Pune in 2006 with initial supply orders from Bajaj Auto. Italy for automotive lightings supply. While exports contribute 5% to Varroc’s revenues. In 2001. bumper modules. total sales from global facilities and exports accounted for 25%. regulator rectifier units. CDI. Varroc has listed engine valves (metallics) and polymers as top growth areas and is investing to build capacity in both streams. modules and consoles. Varroc targets sales of INR40bn (€635. The Polish plant had a high unused capacity which Varroc expects to leverage for its metallic division as a local supply base in Europe.000 tonnes of forged parts. In July 2005. Joint-ventures In January 2008. Within the metallics setup the company has already completed buyouts in Europe to establish a local base and seeks to further strengthen its position in the region. claddings. The deal includes two forging units one each in Italy and Poland. The alliance will concentrate on design. Japan and Shindengen Electric Mfg.20m. for the passenger car segment. 31 March 2008) for FY 2011 of which 33% would be generated from off-shore sales. In 1998. front end carriers. Italy and Varroc to manufacture engine valves for 4-stroke two-wheeler engines. In 2008. where it would continue to supply its full range of products to the two wheeler industry. Ltd. it has entered the automotive mirrors.The Indian Supplier Report lightings business. Varroc opened an injection moulding plant for engineering © SupplierBusiness Ltd 2009 325 . structural parts (beams.09m. Varroc diversified into auto electrical Ignition systems for manufacturing AC generators. crash cladding for front and rear). starter motors and wiper motors. finishers. Varroc invested INR 1bn (€ 17. The group derives 50% of its automotive sales from plastics and nearly 33% from electrical operations. Also. In 2004. was established in collaboration with E. Also in 1998. particularly engine valves. regulators. Durovalves India was formed as a joint-venture between the Scarpa and Colombo srl. Investments In 2007.40bn (€ 24. Varroc is sceptical about export prospects of its polymers business largely due logistics costs and is therefore expanding its presence in the domestic market. Co. 31 March 2007) to expand its metallic division. Varroc plans to invest INR 1. The company is a strong player in the polymer interiors segment and now focuses on exteriors.27m. while it would selectively focus on interior and exterior plastics and forgings. crank pins and cold and warm forged components area. 31 March 2007).18m. Varroc aims to be a global player in the engine valve segment through organic and inorganic route. Varroc opened an injection moulding plant at Gurgaon. In 2005. with technical support from Mitsuba Corporation. Ltd. electrical and engineering businesses. Varroc entered into a joint-venture with Plastic Omnium for manufacturing automotive exterior parts for the Indian market. Varroc Lighting Pvt. The JV designs interior and exterior products for OEMs.E. Varroc aims to restructure its business mix to a ratio of 33:33:33 between its polymer. Japan. Acquisitions In Varroc acquired Italy based hot forging manufacturer Imes Spa with an annual installed capacity of 110. Varroc is now working on a two pronged strategy.C. The company also targets to export 15% of its domestic supplies by value. painted body panels (including tailgates panels) and wheel arch housing. France for injection moulded interior trims. Varroc has entered into a joint-venture with Hyot. to manufacture motorcycle catalyst for domestic consumption under the name Varroc Exhaust Systems. indicators. Most of the goods produced are used to meet the requirements of Bajaj. Metallic division: One plant in Aurangabad is QS 9000:1998 accredited. Varroc commenced supplies of electronic instrument clusters. In 2003. In 2006. Varroc supplies electronic electronic instrument clusters.The Indian Supplier Report plastics in Rajangaon (Pune) to meet the requirements of Mahindra & Mahindra. Varroc commissioned a PU based painting line for automotive plastics component at Pune. Outlook Varroc has an aggressive growth strategy to leverage the current opportunities in the automotive sector. especially in the valves segment. indicators. In 2003. tail lamps and headlamps to the Bajaj Pulsar program. Varroc commenced supplies of electronic instrument clusters. Varroc Group is a privately owned and does not publish financial statements. is has promising prospects for the company with strong demand for outsourcing. tail lamps and headlamps to the Bajaj XCD program. Contracts In 2007. The increased focus on forging and polymer businesses will help Varroc achieve greater sales from passenger car OEM. another Aurangabad based facility is ISO 9001-2000 accredited and another set up in Pune is QS 9000-1998 certified. tail lamps and headlamps to the Bajaj Platina program. Financial Overview In the financial year ended 31 March 2008. © SupplierBusiness Ltd 2009 326 . Exports. Durovalves began producing crankpins and cold and warm forged products. indicators. Electrical division: Two Aurangabad based facilities are ISO 9001-2000 certified. 31 March 2008).6m. Certifications Polymer Division: Two Aurangabad based facilities are ISO TS 16949:2002 certified. Varroc group generated sales worth INR 20bn (€317. Chairman M S Shankar.2008) Employees c.Italy. Victor Gaskets is a major player in the Indian automotive gaskets market. INR390m (€6. Ford India. Victor Reinz Dana – USA and VW. inlet manifold gaskets. where it has been delivering on a zero ppm basis. Lister Petter – UK.150 (31 March 2008) © SupplierBusiness Ltd 2009 327 . Audi – Slovakia. Khed Dist. Joint-ventures Victor Gaskets shares a technical alliance with Dana Corporation for nonasbestos gaskets. Hindustan PowerPlus Caterpillar. Tel: + 91 2135 3269 37-38 Fax: + 91 2135 2591 59 Internet: http://www. Mahindra & Mahindra – Automotive Division and Farm Division. TVS. Victor Gaskets was setup as a joint-venture with Dana Corporation but now operates as an Anand Group company. Pune 410 501 Maharashtra. MICO Bosch. Export orders are expected to materialise in a period of two years. Iveco.The Indian Supplier Report Victor Gaskets Gaskets Address Victor Gaskets Limited. The company operates from a single manufacturing facility in the Western cluster close to Pune. It is the third largest operator in the automotive gasket market with a 16% market share. Tata Motors and Toyota Kirloskar Motors. Victor Gaskets is also working on a strategic alliance for upgrading its technical competence especially for new materials. Certification Victor Gaskets is accredited with QS 9000. Additionally the company has a product validation centre at Nashik.com Senior Officers C S Patel. Japan for developing coatings of fluroelastomer on stainless steel. secondary gaskets. Chief Operating Officer Products Cylinder head gaskets. 31 March 2008) with influx of several engine manufacturers and OEMs in the vicinity of its production unit. The company has developed in-house competence for developing non-asbestos gaskets for automotive and nonautomotive applications. Ashok Leyland.16m. a key requirement for winning business with new entrants which may otherwise choose to bring along existing sourcing partners. The company is also eyeing export business worth INR 1. Hindustan Motors. Simpson & Company. Victor Gasket’s international customers includes. 152/223.03. Victor Gasket’s domestic client base includes.96m. Victor Gaskets also shares a technical alliance with Hamamastu Gasket Corporation. 31 March 2008) (Year to 31. General Motors. India Part of the Anand Automotive Group. oil pan gaskets. Greaves India. Cummins India.16m. Village Mahalunge Chakan-Talegaon Road Tal. Avtec India.victorgasketsindia. valve cover gaskets Recent Developments Corporate strategy Victor Gaskets estimates a three fold increase in sales from the present INR390m (€6. exhaust gaskets. The company is expanding its scope of presence by including heat shields into its portfolio.2bn (€18. timing gear gaskets. Infrastructure Automated and Continuous Perforation & Material Line for Head Gaskets Single Piece Flow Robotic Head Gasket Line CNC Indexing Head Hydraulic Press Mechanical Presses 16 T thru' 400 T Fully Auto Screen Printing Line & Infrared Cure Ovens Spot Welding Continuous Bright Annealing Furnace Plants Chakan Sales c. Maruti. Hero Motors. Lombardini India. 31 March 2008) as a part of its growth strategy with increase in global purchase activity. Victor Gaskets believes that it has proven capability to supply to new entrants based on its success with present clientele. TS 16949 & ISO 9002 status. © SupplierBusiness Ltd 2009 328 . 31 March 2008) in 2008 compared to sales of INR360. Aluminum.16m.3% increase in sales with total sales of INR390m (€6.The Indian Supplier Report Antistick Coating .Silicone.7m (€6. Victor Gaskets developed three Multi Layer Steel Head Gaskets for single cylinder and four cylinder applications. Most new OEM entrants are setting up assembly units close to Victor’s present unit giving it start-off advantage. MoS2 Tool & Die Maintenance Tool Room New Product Developments In 2006. While Elric Klinger has already set shop in the country others are also assessing possibilities of entering India backed by their relations with global OEMs which have announced Indian centric plans. Outlook Victor Gasket has set out an ambitious target for itself in a market with increasing opportunities and increasing competition from new entrants. though it remains to be seen if these OEMs would bring along their international partners to the country. Victor Gaskets does not publish its financial statements. Financial Overview During the financial year ended 31 March 2008. 31 March 2007) in 2007. Also in 2006.23m. Victor Gaskets independently developed elastomers on metal carriers for cylinder head gaskets with firing pressure 240 bar. Victor Gaskets registered an 8. Teflon. wire wheels Plants Haryana.3bn (€179. The company is the only domestic company which has a presence in all vehicle segments i. Hyundai Motors. Hyundai Motors. wheels. Tamil Nadu. The company is a sole supplier to Ashok Leyland and meets 60% of requirement of Tata Motors. The company has expanded its production capacity and reduced transportation costs by building a new plant close to Maruti.8m. Investments In August 2004. The company also manufactures air suspension kits for buses. Honda Siel. It has a commanding 78% market share in the commercial vehicle sector and enjoys near monopoly in tractor wheels market in India. Uttar Pradesh Recent Developments Sales INR 11.7m. Wheels India supplies wheel rims to Ford India. India Wheels India is the largest manufacturer of automobile wheel rims in India with market share of 66%. Wheels India announced a new facility in Gurgaon (Haryana) to manufacture wheels for passenger cars. Sundaram Finance. UK (now Trelleborg) for its air-suspension venture.25 millions wheels. Honda Siel. TVS Groups holds 49. Managing Director Srivats Ram. acquired Dunlop's share in Wheels India. Certification Employees c.600 002. Now. The company invested around INR150m (€2. Wheels India continues to focus on its strategy of holding on to its established customer base. Tata Motors and Maruti Udyog.600 people.The Indian Supplier Report Wheels India Wheels Address Wheels India Limited. cars.48m. In 1999. It exports about 15% of its total sales. which is the key customer.e. Acquisitions In 2002. commercial vehicles. Southern Roadways and Dunlop Holding UK. commercial vehicles accounted for 35% of total sales. The plant caters to the requirement of Maruti Udyog. 31 August 2004) in the plant which has a production capacity of 1. 1. followed by tractors and passenger cars at 20% each. This acquisition has enabled Wheels India to gain near monopoly position in tractor wheels in the domestic wheels market. Wheels India has four production plants and employs around 1.wheelsindia. Vice President. and the replacement market. it supplies Caterpillar and Daewoo Heavy Industries. In 2004.5% in the company. Joint-ventures Wheels India receives technical and financial assistance from Titan Europe the leading manufacturer for agricultural and construction wheels.7% and Titan 39. Contracts Wheels India is the sole supplier to Ashok Leyland. Titan Europe Plc. In the export market. Wheels India acquired Amforge’s tractor wheel facility for INR120m (€2. 31 March 2008) Corporate strategy Wheels India’s status of being a market leader is being challenged by rivals who have announced an increase in wheel manufacturing capacity and addition of new facilities. Ford India. Tel: +91 44 2852 2745 Fax: +91 44 26257121 Internet: http://www. The main domestic customers of the company include Ashok Leyland. MUVs and tractors. Chennai. 21 Patullos Road. Neuride. Maharashtra.Finance Products Air suspension. Tata Motors and Maruti Udyog. Joint Managing Director S Srivathsan. Wheels India was established in 1960 by TVS & Sons. 31 March 2002).600 ( 31 March 2008) © SupplierBusiness Ltd 2009 329 . Wheels India has a technical alliance with Dunlop. Wheels India has a significant presence in the domestic market with 66% market share.com Senior Officers S Ram. INR m 1017 859.4 386.68 NA 7. Net Profit for the fiscal 2008 was at INR 258. 31 March 2008). Wheels India plant in Pune (Maharashtra) is accredited with QS 9000-1998 and its Padi (Tamil Nadu) plant has achieved ISO 9001 and ISO14001 certification.4m (€6. Financial Overview During the financial year ended 31 March 2008. €m 4. INR bn 11.16 Operating Profit. € m 16.26 NA 139.6 260.07 4. Wheels India’s rivals have closed the lead by significantly scaling up their capacity and cornering a part of the growing market.6m (€ 4.00 0.15 14.03bn (€ 173.3 Gross sales.31m. The recently added capacity in the sector is likely to pressurise margins as the market growth has been slower than anticipated in the recent times.3m (€ 4.3 NA Profit Before Tax.9 332.02 Operating Profit. 31 March 2007) in 2007.57 6. This gives Wheels India a well diversified customer base.48m. © SupplierBusiness Ltd 2009 330 .99 99.71% to reach a figure of INR 397.65%.3bn (€179. Profit Before Tax grew by 2.22 Net Profit. €m 179.5 215.3 10. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales. 31 March 2008) compared to a figure of INR 260.9 NA 427. The momentum in exports was particularly strong in case of earthmover wheels and tubeless truck wheels.50 NA 5. INR m 258. INR m 397. 31 March 2008) compared to sales worth INR 10.26m.3 NA 286. Wheels India generated sales worth INR 11.00 Outlook Wheels India is the market leader in almost all segments and has therefore grown with the increase in domestic vehicles sales.11 4.8 Profit Before Tax.9 5.5m. € m 6.11m. 31 March 2007) in 2007.48 173.The Indian Supplier Report Wheels India is accredited with TS 16949:2002 certification.31 6.4 Net Profit.03 NA 7. a growth of 12.84 NA 0. ZF India also supplies to JAC-Egypt. 31 March 2008) (Year to 31.600 power steering gears per annum. Ever since the company has consolidated and streamlined operations. 31 March 2005) for doubling its power steering capacity to 120. Eicher Tractors (now TAFE).17m. Mahindra & Mahindra. PT Wahana. ZFSGIL announced an expansion program worth INR600m (€ 10. The company has managed to indigenize certain key components which it claims shall help beat margin pressures.com Senior Officers AH Firodia.Projects Products Mechanical worm and power steering gears and Integral hydraulic power steering gear Plants Pune Recent Developments Corporate strategy Over the last three years’ ZF India has been seeing improved sales on account of a ruling which mandated the use of power steering on all commercial vehicles. In this regard the company has already entered an agreement with ZF Germany and ZF Shanghai. Force Motors. The company has achieved some success in bringing down its forex outgo. ZFSGIL came into being in 1981 as a three-way joint venture between Zahnradfabrik Friedrichshafen AG (ZF AG). In its counter approach. International Tractors. Joint-ventures ZFSGIL has a technical alliance with ZF Germany. And to make times tougher.Indonesia.62m. ZFSGIL has a strong presence in the commercial vehicles segment with all major OEMs in its kitty. one of ZF’s principal customers has been importing its requirement of steering gears on select programs from China based suppliers. Managing Director Jitendra Munot. Subsequently. at least two players have been working on their plans to enter the commercial vehicle segment for steering gears. however with the ongoing financial slump. While OEMs have been selectively pruning orders amongst vendors. Eicher Motors.23bn (€35. ZF has been eyeing passenger cars. Ashok Leyland. However the bubble in the CV sector went bust and the buyers remained bearish about the power steering systems leading to over capacity.000 units per year. A decade later the company supplied the erstwhile TELCO with power steering gears for its LCVs. 6th floor Near Deep Bunglow Chowk Shivajinagar Pune-411016 ZF Steering Gear India Limited (ZFSGIL) is the largest manufacturer of steering gear systems in India with market leadership in the commercial vehicle segment. Investments In 2004. Tata Motors and Volvo India. ZFSGIL acquired certain machines from its collaborators ZF GmbH. Chairman Dinesh Munot. Tel: +91 020 25663271-74 Fax: +91 020 25663275 Internet: http://www. 700 (31 March 2008) © SupplierBusiness Ltd 2009 331 . commercial vehicle registration numbers reflect a 15-25% drop in demand year on year. The company went in for an expansion in 1993 installing capacity for 75. ZFSGIL developed and designed the power steering for Tata 207 range of vehicles. Sales INR2. Joint Managing Director Piyush Munot. ZF AG chipped in with the technical know-how and helped the company setup manufacturing operations. the Firodia’s of Force Motors and the Munot family as a mechanical steering gear and hydraulic power steering gear manufacturer. Manager .08) Employees c. Ashok Leyland. Swaraj Mazda. The company is also hiking the output of mechanical gears to 150.000 units of mechanical steering gears and 3. TAC-Egypt. Over the last three years. ZF’s case was further bolstered by a sharp increase in demand for commercial vehicles.03.000 units per annum. The move shall help the company cut down its import bill as well as ease pressure on margins. ZF India is now facing margin pressures coupled with slower demand.zfindia. In 2004. Punjab Tractors. These measures have helped ZF in maintaining the profitability of its operations.The Indian Supplier Report ZF Steering Gear India Mechanical and power steering gears Address ZF Steering Gear India Ltd Eden Hall. 30m.96 8.77 8.9 and school bus.63 2. New Product Developments ZFSGIL is preparing to enter the passenger car segment with technical back-up from ZF China and ZF India.The Indian Supplier Report Contracts Currently ZFSGIL is working on new programs being conducted by some of its existing clients like Tata Motors for the ‘World Truck’ platform.00 Outlook Input cost hikes coupled with a slackening demand have sandwiched the financial legroom a supplier like ZF would have enjoyed in better times. 1109TC.06% to INR278.30 2008 2007 2006 2005 2004 *Net sales Year 2008 2007 2006 2005 2004 *Net sales Gross sales.35* Operating profit.20 5.8% compared to INR2.84 201. Net profit increased by 1.8% compared to INR410. Viking Super.30 7.69 31. Besides the company also supplies mechanical steering gears to certain tractor manufacturers. Force Motors for the MAN trucks and Ashok Leyland for the Newgen series.53 275.76m.250.86m (€6.83 432.40m. 31 March 2008). a decrease of 2.74 Profit before tax.60 507. 31 March 2007) in 2007.06 7.86 410.40 4. Special Viking. Autorola for its buses.21 3.10 4.00 Operating profit. Also. Cheetah. Profit before tax stood at INR398. INR m 278. Traveller and Trax Phase 1.59m (€4.03 204.59 226. ZFSGIL supplies power steering gear to truck and bus manufacturers like Ashok Leyland for its 2214. LP 1510 TC. Adding to the company’s woes are changes in the sourcing pattern with and increase imports in its product segment.17bn (€37. 31 March 2007) the previous year.70 400.81 Net Profit.17m. INR m 398. Swaraj Mazda for the T1100 and the Minibus.62 Profit before tax. Hippo dumper.50 3.95 107. €m 4.77 Net Profit. © SupplierBusiness Ltd 2009 332 . € m 7.88 253.80 310. 31 March 2008).24 1. Safari and the Sierra. 609. Year Gross sales.225. LPT 1510 TC. 407.09 6. Financial Overview ZF India's net sales for the year ended 31 March 2008 was reported at INR2. 31 March 2007) in 2007. € m 6.66 1.41 332.95 1.17 37.76 4. 2516 Taurus. Tata Motors for its LPT 4021TC.40 35.23bn (€35. an increase of 2.752.40m.01 23. INR m 503.916. ZFSGIL supplies mechanical steering gear for Force Motors Matador. Eicher Motors for its Canter 10. LPT 2516 TC. LPT 1512 TC. ALRD20 dumper. € m 35.41m (€7. Minidor.165.53m (€4.91 2. LPT 3516 TC.09m.5.. Sumo Diesel. Volvo India for the FH12. 31 March 2008) over INR275. INR bn 2.