ISR Revised Final

THE INDIAN SUPPLIER REPORT
Published by SupplierBusiness Ltd, An IHS Global Insight Company

2 St Pauls Street Stamford Lincs PE9 2BE United Kingdom Tel: +44 (0) 1780 481712 Fax: +44 (0) 1780 482383 Internet: http://www.supplierbusiness.com E-mail: info@supplierbusiness.com
SupplierBusiness Ltd., An IHS Global Insight Company is a specialist consultancy providing analysis of the automotive industry for the automotive industry. SupplierBusiness has focused on developments in the supplier sector and has published a range of reports on industry issues in the last twelve years.
SupplierBusiness Ltd 2009, All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, SupplierBusiness Ltd. This report is the product of extensive research work. It is protected by copyright under the Copyright, Designs and Patents Act 1988. The authors of SupplierBusiness research reports are drawn from a wide range of professional disciplines. The facts within this report are believed to be correct at the time of publication but cannot be guaranteed. All information within this study has been reasonably verified to the authors and publishers ability, but neither accept responsibility for loss arising from decisions based on this report. This title is provided to you on a single-user basis, supplied on the strict understanding that each title is not to be copied or shared. Alternatively, our reports can be shared within departments or entire corporations via a costeffective multi-user license. Multi-user licences can also save you money by avoiding unnecessary order duplication. To further add value all multi-user copies are hosted on a password protected extranet for your department or company saving you time, resources and effort when sharing research with your colleagues. To find out more about multi-user pricing, please contact Sarah Graham; sarah.graham@supplierbusiness.com
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
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
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
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
SKH Metal ..............................................................................................................................................267 Spectra Group .......................................................................................................................................269 Sona Koyo Steering Systems ..............................................................................................................270 Steel Strips Wheels ...............................................................................................................................275 Sterling Tools ........................................................................................................................................277 Subros ....................................................................................................................................................279 Sunbeam Auto .......................................................................................................................................282 Sundaram Brake Linings ......................................................................................................................284 Sundaram Clayton ................................................................................................................................286 Sundram Fasteners ...............................................................................................................................288 Suprajit Engineering .............................................................................................................................291 Systech ..................................................................................................................................................294 Talbros Automotive Components........................................................................................................296 Tata AutoComp .....................................................................................................................................299 Tata Ficosa ............................................................................................................................................302 Tata Johnson Controls .........................................................................................................................304 Tata Steel ...............................................................................................................................................306 Tata Toyo Radiators..............................................................................................................................310 Technical Stampings Automotive........................................................................................................312 Timken ...................................................................................................................................................314 Tube Investments..................................................................................................................................316 TVS Srichakra ........................................................................................................................................319 Ucal Fuel Systems ................................................................................................................................321 Varroc group..........................................................................................................................................324 Victor Gaskets .......................................................................................................................................327 Wheels India ..........................................................................................................................................329 ZF Steering Gear India ..........................................................................................................................331
List of Figures:
Fig 1.1: Fig 1.2: Fig 2.1: Fig 2.2: GDP Growth and Inflation (2001-02 to 2007-08).................................................................. 11 Foreign Exchange Reserves ................................................................................................ 13 Light Vehicle Sales 2005-15 ..................................................................................................... 18 Small car market in India - 7 models in 2005, 25 models in 2015; Average volume per
model 92k in 2005, 70k in 2015 .................................................................................................................. 20 Fig 2.3: Fig 2.4: Fig 2.5: Fig 3.1: Fig 3.2: Fig 3.3: Fig 3.4: Fig 3.5: Fig 4.1: Tata Nano segment volumes to 2018 .................................................................................. 22 Maruti vs Tata vs Hyundai marketshare .............................................................................. 23 HCV market will take many years to come back to 2007 highs......................................... 25 Passenger Vehicle Production............................................................................................. 27 Two Wheeler Production ...................................................................................................... 28 Market Share Passenger Cars........................................................................................... 30 Auto Components Turnover 2002-03 to 2015-16 ................................................................ 31 Auto Components Production by Categories..................................................................... 32 Peak Custom Duties 2001-02 to 2007-08 ............................................................................. 38
List of Tables:
Table 1.1: Labour force and education ......................................................................................................... 13 Table 2.1: Auto Component Industry - Statistics ........................................................................................... 33 Table 4.1: Suppliers where MUL has a stake................................................................................................ 43 Table 4.2: Volumes of the Indian industry (1996-2008) ................................................................................ 44 Table 4.3: Automotive clusters in India ......................................................................................................... 47 Table 4.4: New plant openings announced by Indian suppliers .................................................................... 48 Table 4.5: Mergers & Acquisitions in the Indian supplier industry ................................................................. 52 Table 4.6: Joint-ventures in the Indian supplier industry ............................................................................... 54
Chapter 1: India: An Introduction
10
1.1
A Large Market Growing Steadily
India is the worlds largest democracy with a population of 1.1 billion. It is the second largest emerging market after China and the fourth largest economy in the world in purchasing power parity (PPP) terms, according to the International Monetary Fund (IMF). The countrys economic output, measured by gross domestic product (GDP) at current prices and exchange rates is estimated at US$ 1.16 trillion. GDP has been growing at more than 8% levels since 2003-04, the highest since economic reforms were initiated in 1991. This also makes it the second-fastest growing major economy in the world after China.
Fig 1.1: 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, 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.
India is a service-led economy, with the tertiary sector accounting for half of the nations economic output, agriculture and manufacturing contributing the rest equally. While industrial growth, measured by the Index of Industrial production (IIP), slowed in 2007-08, it is still increasing at more than 10%.
11
The yearly per capita income is estimated at more than $2,500 (PPP terms) and 61% of the GDP is driven by private consumption. Demand is chiefly driven by the middle class, which is estimated at 50 million by National Council for Applied Economic Research (NCAER). This consuming class is estimated to multiply by more than 10 times to 583 million by 2025, according to the McKinsey Global Institute. By 2035, Indias GDP in US dollar terms is expected to outstrip the economic output of Italy, France, Germany and Japan, according to Goldman Sachs BRICs report.
1.2
Business Climate, Financial Markets and External Sector
Business and consumer confidence in India remains optimistic in the long run despite a stronger rupee vis--vis the dollar (though it has fallen by as much as 20% towards the end of 2008), an inflation rate that is hovering around five-year highs and higher prices of raw materials such as crude oil, steel and aluminum. The rupee appreciated by nearly 8% in early 2008 to Rs42 per dollar level, hurting overseas sales growth and realizations of export-led companies but has in November 2008 depreciated to around 48 per dollar. Inflation, measured by the wholesale price index (WPI), is growing at 6% plus levels forcing the government to raise interest rates more than five times in the past year, thus increasing the cost of borrowing for corporates and depressing consumer credit. The fall in global commodity prices around have some what helped ease the inflation to just below 10% level in November 2008.
At the same time, both Indian companies such as Maruti Suzuki India Ltd, the nations largest car maker, and Reliance Industries Ltd, the largest non-state owned petroleum-to-retail conglomerate, as well as multinationals such as General Motors Corp and Nokia are spending money on building factories and other infrastructure in the country. Foreign Direct Investment (FDI) in the country grew from US$3.6 billion in 1997-98 to $7.1 billion in 2007-08 (AprilDecember).
However, this is dwarfed by the amount of money, increasingly confident Indian companies are spending in buying overseas acquisitions, the most notable being the Tata Groups $12 billion buy of steel maker Corus Plc and British marquee brands Land Rover and Jaguar for $2.3 billion. Indian companies spent $32.5 billion in overseas acquisitions* in 2007.
India has a 1% share in world merchandise exports. Exports in 2006-07, the last year for which complete data is available, grew 22.6% to $124.6 billion, while imports grew 24.5% to $185.7 billion. The countrys 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.
12
Fig 1.2: Foreign Exchange Reserves
Source: ACMA
1.3
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. The countrys total labour pool is estimated at 419.5 million. India is a young nation, 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 62.9% in 2006 to 68.4% in 2026. This is in sharp contrast to the ageing population of developed regions such as the United States of America, European Union, Japan and even China. The Indian government is seeking to ensure better healthcare, encourage labour intensive industries and is introducing skill development plans* to harness this demographic dividend.
Still, labour law reforms are remain to be introduced and companies are subject to the jurisdiction of as many as 10 Acts of parliament.
Table 1.1: Labour Force
Labour force and education Million Nos. Nos. Nos. Nos. Nos. 419.5 1,203 1,195 1,006 930 385
Engineering Degree Colleges Engineering Diploma Colleges Institutes of Computer Applications Management Institutes Universities/National Institutions
13
1.4
Low Cost Sourcing Country Contract Manufacturing, Research, Design
India is emerging out of the low cost sourcing level of competence to a stage where it is forced, due to rising wages, to add value to its services. 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, in the rest past we see a definitive addition in value in outsourced services. 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. Further design and engineering firms such as EDAG, Tata Johnson Controls Engineering and Taco Faurecia Design Centra outsource these functions for their global operations. 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. 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. OEMs like VW plans to source parts worth $1 billion per annum from India.
While the low wage cost advantage erodes, the value proposition from is becoming the proposition.
1.5
Infrastructure Roads Getting Top Priority
Infrastructure, whether it be roads, ports, technical schools or hospitals, continues to remain a key bottleneck to growth and development in India. The government has introduced several programmes such as Bharat Nirman for building rural infrastructure, as well as sectoral initiatives, such as the National Highways Development Programme (NHDP), the Airport Financing Plan, the National Maritime Development Programme and the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). It is estimated that the private and public secor will together spend $581 billion over the next five years to boost infrastructure.
Together, these programmes envisage to add additional power generation capacity of about 58% or 70,000 MW, construct 8,737 of National Highways, capacity addition of 830 million MT in ports, and modernize 39 airports across the country and building 7 new ones. Of the $581 billion to be invested in infrastructure creation, 30.4% is expected to be spent on power generation including the so-called Ultra Mega Power Projects and 15.4% on improving the road network, including the Golden Quadrilateral and the East-West Corridor. The road network in India is around 3,315,231 kilometres of which highways constitute only 2%. However they carry 40% of the total traffic.
14
In addition, the government has given in-principle approval for special economic zones (SEZs), some of which such as the one at Mundra are expected to attract an investment of Rs 70,000 crore ($17.5 billion).
1.6
Natural Resources
With an area of 3.3 million sq km, India is the seventh largest country in the world, and the second largest in Asia, in terms of area. 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. Most raw materials such as iron, steel and non-ferrous metals such as aluminium, copper and plastic are manufactured in the country. India has the fourth largest reserves of coal in the world (235 billion tones), fourth largest reserves of bauxite, used to produce aluminium, (2.4 billion tones) and fifth in world reservoirs of Iron ore (24 billion tones).
15
Chapter 2: Indian Market Outlook and Forecast
16
The Indian automotive market stays promising for car manufacturers, more so as most other automotive markets are in a downturn in face of the ongoing global economic crisis. According to a recent IHS Global insight forecast, india (alongwith China) would be amongst one of the few significant global markets to deliver positive growth in 2009.
2.1
India survives the slowdown of 2009
The year 2009 has been quite brutal for the global auto industry. According to forecast data from automotive forecasting firm IHS Global Insight, global passenger car sales in 2009 are expected to decline by 13% to 41.5 million units, from nearly 48 million units in 2008. the fall has been severe across many developed economies. In North America, sales are expected to fall, by more than 25%, to 6.24 million units, from 8.36 million units in 2008. Similarly, car sales in Western Europe are expected to fall by nearly 9% to 12.35 million units, from 13.56 million units in 2008.
In contrast, the Indian car market has been holding up well in 2009. Light vehicle sales in 2009 are expected to grow by nearly 4% to 1.8 million units, from 1.73 million units in 2008. While passenger car sales are forecasted to grow by 4.7% in 2009 to 1.35 million units, from 1.29 million in 2008, IHS Global Insight forecasts LCV sales to 453,000 units in 2009, from 445,000 units in 2008, a growth of 1.8%.
The start of the year 2009 was a bit weak as buyers anticipated India to be hit hard by the global economic meltdown; Passenger car sales in January were down 3.2% at 110,000 units. However, February saw a sharp rebound, with sales growing 22% at 115,000 units, from less than 95,000 units in 2008. Since then the market has stayed in an uptrend, thanks to new model launches, a resilient economy that has not slumped and weakening of interest rates from their peak.
However, the HCV sector has been badly hit. Mirroring global HCV sales trends, Indian HCV sales are forecasted to drop by around 39% to 136,000 units in 2009, from 223,000 units in 2008. The market has been hit very hard by a slowdown in infrastructure development & construction activities. Hardening of interest rates have not helped in growth as potential buyers have delayed purchases, waiting for interest rates to come down.
While the start of the year saw HCV sales decline by more than 50% year-on-year, the trend has improved in later months with a somewhat arrest of the decline. However, sales have been in the negative territory on a year-on-year basis.
17
2.2
Steady growth over the next decade
India is a very under-penetrated market. Annual car sales of slightly more than a million units per year and a parc of 10.76 million cars means that there is less than one car per ten individuals. The penetration levels are rather low as one moves out of the big cities to the smaller towns. This presents a lot of scope for sales to grow.
On the light-vehicle side, the Indian market will continue to stay lucrative as sales will grow steadily in the mid- and long-term. IHS Global Insight forecasts the car market to double, over the 2008 sales, by 2016. Passenger car sales are further forecasted to cross the three million units per year mark by 2018.
Fig 2.1: 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, in 2010, the market is projected to grow by 11.6%. The Nano will, by 2010, add significantly to demand. Its contribution, however, has been undermined by the costs of shifting the plant and the availability of finance to potential buyers. The real growth in passenger car sales volumes from the Nano will only start coming in 2011.
Sales are expected to ride on the strong growth projected for the Indian economy. With a population of 1.2 billion, strong youth-inclined demographics, increasing purchasing power and growth in urbanization, India has the right base for a healthy demand.
18
On the LCV side, sales are expected to double, over the 2008 figures, by 2019. Most of the growth in LCV sales will come from the growth in the micro-truck segment, lead by the Tata Ace. 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, Force M4 Super and HM Winner.
After the very strong dip in sales expected to happen in 2009, HCV sales will also rebound, driven by a strong growth in infrastructure sector and an increase in construction activities. However, it will take many years for HCV sales to rebound to 2008 numbers. IHS Global insight forecasts HCV sales to cross 2008 levels only by 2014.
2.3
Total vehicle production to double in 10 years
On the production side, the growth would be even healthier, thanks to many manufacturers using India as a global production base, mostly for small cars. Maruti-Suzuki, Hyundai, GM and Nissan are expected to base a large percentage of their global small car production in India.
Passenger car production is expected to cross the three million units per year mark by 2015, doubling over the 2008 production levels. It is further expected to cross four million units per year by 2018.
LCV and HCV production is expected to stay linked to the domestic market, though micro-trucks like the Tata Ace may find a healthy export demand.
2.4
Passenger car market will remain small car centric
India is a small car centric market. 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, small cars (A segment + B segment) are likely to account for 82% of total passenger car market. Their weightage would still be 77% in 2017, according to IHS Global Insight forecasts.
The main reasons for the market to stay small carcentric are: 1. Price sensitive nature of the market: According to Indian government estimates of July 2009, the per capita income in India was a little less than USD 750. The most popular cars in the country are priced at INR 375,000 (USD 8000), or equivalent to about eleven
19
times annual income of an individual. This makes the market one of the most price sensitive market in the world. 2. Cost of components: The price sensitivity of the market further reflects in cost of spare parts. Small cars often have lower priced components than large cars and this is a strong factor in favour of small cars. 3. Fuel prices: Current petrol prices in India are INR 47 (USD 0.95) while diesel prices are INR 34 (USD 0.72). When taking into factor the per-capita-income, real Indian fuel prices are one of the highest in the world. This is a strong factor in favour of small cars as they provide better fuel efficiency. 4. Space constraints: Indian cities are very densely populated. These are also the largest markets for passenger cars in the country. Due to the dense nature of these cities, 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 1.8 million cars, each model on an average accounting for 70,000 cars. This is a significant average volume per model and is representative of the dominance of the small car segment in the future.
Fig 2.2: Small car market in India - 7 models in 2005, 25 models in 2015; Average volume per model 92k in 2005, 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
20
2.5
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 orders. This is a significant number, considering Tata is offering delivery to the first 100,000 customers only by the end of 2010. Deliveries beyond that will commence in 2011.
About the Nano: The Tata Nano is a four-door hatchback with a rear-engine, rear-wheel drive powertrain allignment. The car is designed in such a way that it minimizes costs to an extent unseen in the global automobile industry till date. In terms of design-to-cost approach, the Tata Nano even goes beyond the Renault / Dacia Logan which had been the benchmark till date.
Tata Motors started with the ambitious target of offering the Tata Nano at a starting price of INR 100,000 (USD 2100). The business proposition was to transfer customers from the very lucrative motorcycle market (7 million + unit sales per annum) to the Tata Nano. The average popular motorcycle in India retails for INR 50,000 so a Nano at INR 100,000 makes a very attractive proposition.
Tata finally ended up pricing the base version of the Nano at INR 100,000 (USD 2100) ex-factory, which translates into an on-road price of INR 125,000, still a very attractive price as the nearest rival, the Maruti 800 sells for INR 200,000 and most popular cars sell in the INR 300,000-350,000 bracket.
However, the base version of the Nano is sans air-conditioning, something of a must in Indian weather conditions. There are two deluxe versions available and we expect these to be more popular than the standard variant. The bookings received till now by Tata Motors are 85% tilted towards the top two variants of the Nano.
The Tata Nano is aimed at rural, semi-urban areas and tier-II cities. The project holds great promise of converting thousands of two-wheeler commuters into car buyers due to its affordability. However, with Indias shaky infrastructure and lack of space in big cities, the Nanos success faces constraints.
The project has been considerabely delayed due to the Singur land acquisition crisis. Production has started in a limited way at Tatas Pantnagar facility and customer deliveries face production constraints. The main plant at Sanand, Gujarat will only start in 2011 and we expect volumes to get a boost from then.
21
The delay in productionising the Nano has taken a toll on the project. The project faces challenges in the form of costs and the afore-mentioned volume constraints. The delay has also allowed competition to catch up.
We expect competition to come from the Renault-Nissan-Bajaj small car which is under development currently. The small car is expected to roll out in 2012. At this time, this is the only confirmed competitor to the Nano under development.
Fig 2.3: 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, Hyundai and Maruti-Suzuki are rumoured to be working on small cars to be priced below their existing portfolio of products. This would price their new offerings at around INR 200,000 mark, close enough to Nanos expensive variants.
2.6
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. While the overall market-share of the company is expected to fall in the midterm future, thanks mostly to the emergence of the Tata Nano, the company would still account for a large part of the car market and retain its market leadership position.
In 2008, the company accounted for 54% of all passenger cars. The Maruti Alto sold 209,121 units in 2008, a formidable number in a total marker of 1.2 million cars. While the advent of the Tata Nano and the launch of small cars from other competitors like Hyundai, VW and Nissan,
22
Maruti would be under pressure to maintain its market share. According to IHS Global Insight forecasts, Maruti-Suzuki would still account for a 34% share of the market in 2018.
Fig 2.4: Maruti vs Tata vs Hyundai marketshare
Market shares - Maruti vs Hyundai vs Tata
60.00 50.00 40.00 30.00
53.64
53.53 48.76 42.89 38.69 36.37 35.25 34.29 32.84 33.12 34.00
19.39 20.00 10.00 0.00 2008 2009 2010 2011 12.21 18.82 13.02 19.16 14.81 15.27
20.46
22.02
21.27
20.33
19.98
19.57
19.83
13.62
14.03
11.98
11.93
12.87
13.07
12.86
12.40
2012
2013
2014
2015
2016
2017
2018
Maruti
Hyundai
Tata
2.7
Emergence of India as a small car manufacturing hub hampered
Over the last five years, 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. These included Maruti-Suzuki (previous generation Alto exported to Europe from India, current generation Alto only manufactured in India) and Hyundai (Santro / Atos / ATos {Prime global production hub, i10 global production hub).
Manufacturing in India offers a number of advantages, main amongst them being: 1. India is a low cost manufacturing centre with a qualified talent pool 2. The manufacturing base is modern and is accustomed to global manufacturing techniques and best practices 3. A large pool of automotive component suppliers who have attained the required quality and delivery standards to meet global requirements
23
4. 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.
However, India also poses a number of challenges for global manufacturing, main amongst them being: 1. Geographical location presents a challenge in the form of high logistics costs, especially when shipping to Western Europe. 2. Local problems like high power costs, labour problems etc drive the cost and effort of manufacturing. 3. Infrastructure problems including inadequatre road network and inefficient ports mean that the delivery of cars takes a longer time than it should. 4. Absence of FTA with EU gives an advantage to countries like South Korea who have an FTA with EU.
Some of these factors have been decisive in Hyundai deciding to shift the i20 export production to Eastern Europe. Hyundai was facing problems due to labour unrest and the inefficient Chennai port. The tilt towards Eastern Europe was aided by the recent FTA between S. Korea and EU.
2.8 HCV market sees major collapse in 2009 and will take years to recover
Towards the end of 2008, HCV sales in India suffered a huge collapse, declining by more than 50% on a year-on-year basis during the early part of 2009. Sales still are facing a lot of pressure and continue to be in negative turf. 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.
HCV sales were adversely affected in 2008-2009 due to the following factors: 1. High interest rates made truck finance very expensive. Most of the HCVs in the market are financed and a high interest component negated the business proposition. This made HCV owners and fleet buyers to defer buying new vehicles, hoping that rates would stabilize soon. 2. Most infrastructure projects slowed down or stalled due to hardening interest rates and HCV demand linked to these projects evaporated. 3. Many fleet buyers postponed buying decisions, deciding to wait, fearing the uncertain economic climate and the global slowdown.
24
Fig 2.5: 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
2.9 Infrastructure growth a roadblock towards move to high tonnage in the HCV sector
Like all growing, developing markets, the HCV segment in India was also expected to move towards higher tonnage. This is linked to development of better roads that permit more axle weight and higher speeds. Also, better roads would enable drivers to stay operational longer without fatigue and will increase the average road distance travel per day.
However, this has not been the trend. While the choice of high-tonnage truck models has improved, their contribution as a percentage of sales has not improved significantly. The reasons are manifold: 1. High-tonnage trucks are often in the articulated (tractor-trailer) format which are difficult to manouevere in congested Indian cities. 2. Indian highways are not wide enough to accomodate bigger trucks. 3. Bigger trucks involve high investments and fleet owners are hesitant to do so.
25
Chapter 3: Indian Auto Industry
26
3.1
From the Maruti 800 to the Tata Nano
The Indian vehicle making, and as a corollary the component industry, has changed vastly in the 17 years since liberalization. Almost all the major auto-making groupings with the exception of PSA-Citroen SA are assembling vehicles in the country and/or sourcing components, almost 50 new products and variants are introduced in the market each year.
Fig 3.1: Passenger Vehicle Production
Source: SIAM, ACMA
Over 10 million vehicles including two-wheelers are sold every year. Despite a slowdown in vehicle sales in 2007-08 as a result of a rise in lending rates and decrease in credit availability, this sector has grown at a CAGR of nearly 15% in the past four years. India is the second largest two-wheeler market in the world.
27
Fig 3.2: Two Wheeler Production
Source: SIAM, 2009-10 figures are projections
The automotive sector in India contributes to 5% of the nations GDP and 17% of the indirect taxes as a result of which the government last year charted a 10-year blueprint for the sectors growth. This envisages the automotive sector output reaching a level of $145 billion accounting for more than 10% of the GDP by 2016.
However, Indias auto industry is maturing not only in quantitative terms. Indigenous vehicle and component makers are investing in research and development, engineering and design capabilities. 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, the cheapest car in the world with a tag of $2,500.
Companies are now looking beyond the domestic market by boosting their overseas sales and buying foreign companies whether for technology, customer base or physical assets. Some, 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.
28
3.2
Key Vehicle Market Characteristics
A historical combination of factors including low growth in a socialist style economy, unavailability of credit and lack of choice in the vehicle market kept Indias vehicle penetration low. For instance, passenger car ownership at 8 per thousand people is way lower than global average.
A frugal mindset, 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, every seventy five of hundred cars sold in India is a small car. Motorcycles continue to be the nations main mode of transport with an estimated 45 million households nearly the size of the middle class* - owning a two-wheeler. While this has resulted in the development of the Tata Nano, it has also forced many a multinational carmaker including the likes of Ford and Honda to explore low cost cars for India. The government too with its excise tax cut on this category of vehicles, seeks to promote this category and make India a small car hub. 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.
The growing disposable income of the middle class, which forms the mass of the employed population, has helped them upgrading to mid-sized cars (such as the Chevrolet Aveo, Honda City) and demand for this segment has grown the fastest in 2007-08*. Also, 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. Together, all vehicle manufacturers are investing a combined $15 billion in the next four years in building factories, design and development facilitites and distribution networks. Marketshare in almost all segments passenger vehicles, commericial vehicles, two-wheelers and tractors is concentrated among two or three major players. Over 90% of the car market is in the grip of three players Maruti, Tata Motors and Hyundai Motor India. A similar proportion of the two-wheeler market is concentrated in the hands of Hero Honda and Bajaj Auto.
29
Fig 3.3: Market Share Passenger Cars
Source: SIAM
Production is spread over, but not restricted to, the three hubs of Delhi and its suburbs in the north, Pune in the west and Chennai in the south. 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.
3.3
Engineering and Design Capabilities
A decade after the first indigenously developed car was introduced, India is gradually emerging as a base for automotive engineering and design, riding on its expertise in the informational technology sector and drawing on its large pool of low-cost engineering manpower. Not only have local companies such as Ashok Leyland and Eicher Motor started their own engineering and design arms, even global companies such as General Motors and Honda, have invested in such facilities for their global programs. In the last couple of years, about 15 design institutes across the country have started special courses for automotive design.
3.4
The Indian Auto Component Industry
Concomitant to the growth in the original equipment manufacturer industry, Indias auto component suppliers too have grown at a fast pace, aided in part by increasing exports. Indias automotive supplier industry will grow from $6.7 billion in 2003-04 to an estimated $18 billion in 2007-08, according to the Automotive Component Manufacturers Association of India (ACMA).
30
Fig 3.4: 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. Most of the companies, including some of the largest ones, are familyowned. 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. All of them are ISO 9000 compliant companies and Indian companies have won 11 Deming Awards within the past five years.
Indian vendors make a variety of components ranging from high precision parts for engines to forgings. The percentage of the overall production of auto components in terms of categories of products is shown in the following table:
31
Fig 3.5: Auto Components Production by Categories
Source: ACMA
While tierisation is not very pronounced in the industry, there is progress on this front. Many Indian vendors, classified as Tier I locally, are at the same level as tier II and Tier III suppliers when they export to the developed markets. Tierisation, as a rule however, is linked to the maturity of the original equipment manufacture, for many of whom the volume to opt for this system has come about only in the past 5 years. 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. For instance, Bajaj Auto has minimized its investment in its newest factory in Rudrapur, Uttarakhand by opting for a systems supplies rather than small parts as is the norm in its other facilities.
Indias auto component market is also marked by the presence of a number of foreign companies such as Delphi, Visteon and J-Tekt, Denso, Mobis, many of whom followed their multinational customers into India. While some of these are independently operating in India, most have chosen to opt for a local partner be it in the form of a joint-venture, technical partnership or marketing arrangement.
32
Just as automobile manufacturers in developed countries increase the levels of electronics and computer-based applications in vehicles, the trend in India is not far behind. Though in India, electronics are limited to engine performance and emission reduction systems such as ECM, Common Rail systems, EGR etc, it is yet to mass produce electronics for safety such as ABS, airbags, ESP etc. mandated in small cars in the developed countries.
3.5
Auto Component Exports
Global auto component consumption is expected to grow from $1.2 trillion in 2003 to $1.65 trillion by 2015, according to an ACMA-McKinsey study. Of this, the potential market for India and other low cost countries such as Thailand and Vietnam is estimated at 42% or $700 billion. The report further says that the Indian auto component industry can aspire to increase its revenues to $2025 billion in exports. The governments automotive mission plan goes even further and envisages the total size of the auto component market at $40-45 billion in 2016.
Table 3.1:
Auto Component Industry - Statistics 2003-04 2004-05 8,700 1,692 1902 3750 19.5% 2005-06 12,000 2469 2482 4400 20.5% 2006-07 15,000 2873 3328 5400 19.2% 2007-08 18,000 3615 4938 7200 20.1%
Turnover Exports Imports Investment Export as % of Turnover

(Value in US $ million), Estimated Source: ACMA
6,730 1,274 1428 3100 18.9%
High labour and pension costs in the developed markets and the emergence of viable, lower cost options in countries such as India and China has led to most multinational vehicle makers turn eastward when shopping for components. Further, 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. This has resulted in auto component exports from India soaring at 20% plus levels per year in the past decade. Since 2002, 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. They have also improved their sales to OEMs vis--vis the aftermarket in recent times. ACMA data says that over 75% of Indian component exports in 2006 were to vehicle markets compared with 35% a decade ago.
Still, 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
33
years. They are also vulnerable to increases in the price of steel, 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.
3.6
Integrating with World Standards
Indian automobile industry standards are gradually integrating with world standards on emission, safety and noise. India has signed the 1998 Agreement of the World Forum for Harmonisation of Vehicle Regulations (WP-29), wherein it will participate in the formation of world standards.
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 CMVR is based on ECE regulations and has come out with a specialized set of norms called the Automotive Industry Standards (AIS). These standards are generally superior to BIS norms, but have led to a situation where in new vehicles and the components supplied to the programs are to adhere to AIS, 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. The Bharat Stage III norms, which are equivalent to Euro III norms, were made mandatory from 2005 and the next stage is scheduled for April 2010.
At present, the testing and homologation is done at the Automotive Research Association of India facilities at Pune and VRDE in Ahmedabad. To facilitate the adoption of safety and emission norms and for encouraging design and development of new vehicles and components in the country, the Indian government is spending Rs 1,718 crore in creating testing and research and developed facilities in the country. Called the National Automotive Testing and R&D Infrastructure Project (NATRIP), the project aims at building independent automotive testing centres within the three automotive hubs in the country, and a world class proving ground in Indore. It plans to build testing centres and validation facilities for tractors and other off road vehicles along with a road accident data analysis facility. It is scheduled to be completed by 2011.
34
Chapter 4: Government and Policies
35
4.1
Introduction
The economic reforms started by the government in 1991 have changed the way business is done in India. After years of the Licence Raj, when companies had to take the States permission to invest and produce, the new economic policies have done much to bring in foreign investment and promote external trade. This has been visible in most sectors including the automotive sector, which has seen several multinational companies enter the country in the past decade.
Like a majority of other industrial sectors, the automotive sector is deregulated. 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. It also means that the government does not interfere with the operations of companies in the sector.
Foreign direct investment of up to 100% is allowed under the automatic route except in a few cases typically that invoke non-compete clauses - that require government approval from the Foreign Investment Promotion Board (FIPB). The FIPB also grants composite approvals involving foreign investment/foreign technical collaboration. 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.
4.2
Taxation
Indias tax structure includes corporate and personal income tax, customs duties, CENVAT (which has replaced Excise duty) and service tax.
4.2 a:
Corporate Tax
The corporate tax rate which has been left unchanged in the past two Union budgets is fixed at 30% plus surcharges. Firms in sectors such as automotive and biotechnology are allowed to deduct 150% of expenses incurred in research and development. Though this sop is allowed until 2010, the government is considering extending this benefit for a further period of time.
4.2 b: Value Added Tax Since April 1, 2005, most of the states* and union territories have adopted a value added tax, which replaced the sales tax. Still, 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. There is
36
also a tax on services and new services are being made taxable every year. 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, which will abolish local taxes and CST and make the whole country a single tax zone.
4.2 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. In the Union Budget for 2008-09, the government reduced the basic CENVAT rate levied on a majority of goods produced in the country by 2 percentage points to 14%. The auto industry, too, was a major beneficiary with the Finance minister cutting excise tax on several categories of vehicle such as small cars, two-wheelers and buses to promote their demand and production in the country.
Small cars, for the purpose of the concessionary rate of excise, have been defined as vehicles with a length of not more than 4000 mm and powered by a petrol engine of capacity less than 1.3 litres and diesel engine of capacity less than 1.5 litres. The excise rate for this category of vehicle is 12% similar to those imposed on two-wheelers and buses. All other passenger vehicles other than small cars attract an excise duty of 24%.
4.2 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. The peak rate is currently at 10% and is likely to remain at this given rupees appreciation and cheaper cost of imports.
A customs tariff (basic rate) of 7.5%* is currently levied on imports of auto components into the country, which has been progressively reduced from 15% three years ago. In comparison, the customs duty on raw materials varying from steel to plastic is between 5 and 30%.
Also, the import duty on completely built units (CBUs) of passenger cars is very high to discourage imports and promote investment in the country. The basic customs duty on a passenger vehicle is 60%, and once all the other levies such as countervailing duty are added up, the effective rate of import duty is more than 100%, thus doubling the price of an imported vehicle.
37
Fig 4.1: Peak Custom Duties 2001-02 to 2007-08
4.3
Trade Policies
Since reforms began in the early 1990s, India has been steadily opening its markets to foreign companies thus aligning itself closer to WTO norms. Imports and exports are mostly decontrolled and foreign exchange issuance is no more limited to a paltry amount.
The government has been aggressively pursuing bilateral agreements with several countries, especially its neighbours, in the form of Free Trade Agreements (FTAs), 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. It has signed a Framework Agreement for a CECA with ASEAN.
India has also signed a Framework Agreement for a Free Trade Area with Thailand. Initially driven by an Early Harvest Scheme comprising 82 items, including a few automotive components such as lighting equipment, suspension and transmission parts, these items moved on a tariff reduction in three blocks beginning March 1, 2004 and ending March 1, 2006, ranging from 50 to 75 to 100% reduction in tariffs.
While this has increased foreign trade, it has also given rise to concerns that countries such as China, Philippines, Malaysia, Indonesia and even Taiwan are using, Sri Lanka and Thailand, with whom India has trade agreements, as a conduit to dump products into India.
38
4.4
Foreign Collaborations
A foreign company planning to set up business operations in India has the following options:
1. By incorporating a company under the Companies Act, 1956 through joint-ventures or wholly-owned subsidiaries. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to equity caps in respect of the area of activities under the foreign direct investment policy. Currently, companies may own 100% equity for units in the automotive sector. 2. As a foreign company through a branch office. liaison office/representative office, project office or
Such offices can undertake activities permitted under the Foreign Exchange Management Regulations, 2000. For registration and incorporation, an application has to be filed with Registrar of Companies. Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies.
Companies are free to acquire foreign technology either through buying other companies or licensing them. The induction of know-how through foreign collaboration agreements are allowed either through the automatic route or with prior approval from the government. The terms of payment under foreign technology collaboration, which are eligible through the automatic route and by the government approval route, includes technical know how fees, payment for design and drawing, payment for engineering service and royalty. Payments for hiring of foreign technicians, deputation of Indian technicians abroad, and testing of indigenous raw material, products, 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.
The RBI also governs payments for imports of plant and machinery and raw material not covered by the foreign technology collaboration approval. 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, without any restriction on the duration of the royalty payments. The royalty limits are net of taxes and
39
are calculated according to standard conditions. These are irrespective of the extent of foreign equity in the Indian company.
4.5
State Level Policies
Each Indian state has its own industrial policy designed to attract investment and promote employment in that region. States compete with each other to offer big ticket incentives to bring investment. For this, they offer various incentives such as land at concessional rates, exemption from value added tax, concessional rates for power and water etc. The extent of these incentives depend on the size of the investment, the employment potential of the project and the negotiating power of the company.
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. 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.
40
Chapter 5: Evolution of the Indian Supplier Industry
41
The historical evolution of the Indian supplier industry can be analyzed in three parts.
5.1
Before 1985 - The era of licenses
The first phase of the industrial evolution was the period before 1983. During this phase there were very few OEMs with the major ones being Tata Motors and Ashok Leyland in the commercial vehicle sector; Hindustan Motors and Premier Automobiles in the passenger car sector; Mahindra & Mahindra in the utility vehicle segment and Bajaj Auto and TVS Motors in the two wheeler sector. 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.
This period was also the era of licenses. The government did not allow manufacturing units to function independently and capacities were capped. A unit had to take a license for This allowed only a restricted growth for the OEMs as well as the suppliers.
This was the period of emergence of key TVS Group suppliers like Brakes India, Sundaram Clayton, Sundaram Brake Linings, Sundaram Industries and Sundram Fasteners. However, TVS suppliers did not constrain themselves to only supplying to TVS Motors. A number of TVS Group suppliers also supplied to the commercial vehicle and passenger car sectors. The early start and diversification has made the TVS supplier group one of the largest in India.
5.2
1983-1995 The years of growth
During the early 1980s, the Indian government decided to remove the license system and allowed manufacturing companies the freedom to operate. A number of two wheeler manufacturers including Bajaj Auto, Hero Group, Escorts and TVS entered into joint ventures with international players. This decade is the time period when both Bajaj Auto and Hero Honda developed their individual group of suppliers. Both companies had strong growing volumes which could support a group of allied suppliers entirely on their own. Both the groups also supported a number of supplier companies promoted by near and extended families. In the years after their formation, two-wheeler supplier families consolidated around their OEMs in a system somewhat similar to the Japanese Keiretsu. In fact, in some cases the Japanese partners like Honda (and its allied suppliers) Hero Honda initiated the development of suppliers like Munjal Showa, Sunbeam Industries, Munjal Auto Components and Rico Auto. Hero Hondas core suppliers, apart from some exceptions like Munjal Showa and Rico Auto, initially focused on supplying Hero Honda only and their development outside the family was restricted. On the other hand Bajaj Auto developed suppliers like Varroc Group, Endurance Group and Aurangabad Electricals, mostly
42
promoted by family and associates of the OEMs promoters. Most of these suppliers limited themselves to supplying Bajaj.
The second important event during the period was the emergence of Maruti-Suzuki. This was the first time that the Indian industry was exposed to global standards of manufacturing and quality. While the first cars to roll out had a high Japanese content, the governments mandatory policies ensured that Maruti had to achieve high indigenization levels within a short period of time. The Indian automobile supplier industry was ill-equipped at that time to meet Suzukis demands of delivery and quality. These were the important factors which prompted Maruti-Suzuki to form a dedicated vendor group of its own. 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. This was the phase when a number of suppliers like Krishna Maruti, Asahi India, Mark Exhaust, Sona Steering, Machino Plastics, Bharat Seats etc were born. The company decided to work with some of the existing Indian vendors as well (e.g. Brakes India, Wheels India etc.) aiding them through arranging technology joint-ventures with Suzuki suppliers.
Table 5.1:
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 (%) 11.11 14.81 20 39 10.27 29.28 15.8 15.35 44.37 10 7.85 44 50 50 51
Maruti suppliers have over the years shown strong growth, to a large part supported by Marutis volumes. Maruti group suppliers like Sona Koyo and Asahi India have emerged as some of the biggest component manufacturers in the country.
43
5.3
1996-2005 The emergence of ambition
The Indian automotive industry has shown a steady growth since 1996-97 - with double digit growth since 2001-02 - and the suppliers have benefited the most from the strong domestic numbers. However the rate of growth between 1996-97 and 98-99 was slower as the domestic industry went through a minor depression.
This was the time when Indian suppliers like Bharat Forge started exploring international markets. 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.
Table 5.2:
Volumes of the Indian industry (1996-2008)
Production
Year INR billion Growth (%)
Exports
INR. 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
114.75 120.32 129.97 163.56 172.46 216.02 255.35 306.40 383.00 483.00 612.00 728.00
5 8 26 5 25 18 20 29 38 25 20
10.33 14.96 15.74 18.33 27.06 28.02 34.96 46.20 67.68 98.76 114.92 144.60 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
3,278 3,008 3,249 3,894 3,965 4,470 5,430 6,730 8,700 12,000 15,000 18,000
-8 8 20 2 13 21 24 29 38 25 20
291 330 350 456 625 578 760 1,020 1,692 2,469 2,873 3,615
13 6 30 37 -8 31 34 66 46 16 26
44
Factors that have driven the Indian suppliers export push: Lower manufacturing costs in India offer an advantage to international OEMs and tier I suppliers. India has an automobile industry in an advanced stage of development. The significant volumes of the industry ensure that the top fifty suppliers have the base to grow their export businesses. Due to the cost advantage Indian companies have a stronger position in supplying semifinished and labour intensive components like ferrous castings and forgings, heavy duty crankshafts and semi-finished components. On the other hand, India by virtue of its strong IT industry, also has a strong position in areas like software development. In the future, Indian companies are likely to develop an expertise in telematics and design. 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.
5.4
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.
In 2006-07, the industry was hit by commodity hardening, resulting in brief phases when suppliers were under pressure on margins front. The escalation in oil prices in early 2008 also contributed its bit to the woes of the industry.
In 2007, a falling dollar adversely affected the industry, 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 situation has now reversed as the US Dollar has strengthened in the second half of 2008. Currently a number of industry players with exposure to GM, 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.
5.5
Automotive clusters their evolution and importance
Mostly due to the presence of the major OEMs, and vice-versa, Indian suppliers have mostly been based in three clusters. The three clusters around Delhi, Mumbai-Pune and Bangalore-
45
Chennai are areas that have received high automotive investments in the past and where the prominent OE manufacturers are located. Infrastructure problems like bad roads, traffic mismanagement, slow train network and communication issues were the drivers behind the formation of automotive clusters.
Mumbai-Pune, Delhi-NCR (National Capital Region) and Bangalore-Chennai are the largest recipients of automotive investments. 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. Government has been proactive with plans to establish vehicle test facilities in each of these automotive clusters to quicken homologation procedure. Earlier, vehicle makers were slowed by delays in launches due to bottlenecks at Indias only facility based in near Pune in Ahmednagar.
Mumbai-Pune is the oldest and largest cluster with the presence of large OEMs such as Tata Motors, Fiat, General Motors India, Mahindra, DaimlerChrysler in passenger cars; Tata Motors and Force Motors in commercial vehicles and Bajaj Auto ad Kinetic in two-wheelers. To support these OEMs, there are a large number of suppliers including Tata AutoComp, Bharat Forge, Bosch, Lear and a whole lot of smaller component manufacturers in the region. There is also a large concentration of German suppliers in the region. Until the 90s, Pune catered mainly to the commercial vehicles sector but with Tatas foray into volume passenger cars and components, followed by similar moves by Mahindra, the supplier focus has widened.
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. Maruti was followed quite late by Daewoo (now defunct) and Honda in passenger cars and Hero Honda and Honda in the two-wheeler arena. With most of the OE companies being Japanese manufacturers or their collaborations, a high percentage of suppliers in the NCR cluster have Japanese origins, equity or technical inputs. The leading suppliers in this area are mostly Maruti affiliates like Asahi Glass, Krishna Maruti, Sona Koyo and JBM.
Marutis 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. Honda SIEL Motors, based near Delhi also draws from the suppliers cluster in the region. While the NCR region is at a disadvantage because of its large distance from ports, the government has responded well by setting up an Inland Container Depot (ICD) at Tughlakhabad to facilitate exports.
46
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. However, the early 90s saw manufacturers like Ford, Hyundai and Toyota setting up manufacturing facilities there and a resultant inflow of suppliers into the area. Visteon, Delphi, and Bosch are some of the important suppliers in the cluster. The proximity to Chennai port facilitates exports for the suppliers in the cluster.
Toyota has established a supplier park in the Bidadi region near Bangalore, including its own transmission parts unit under Toyota Kirloskar Auto Parts. Bangalore is also the Indian headquarters of Indias largest automotive supplier Mico Bosch.
Table 5.4: 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. Tata Motors has announced setting up of manufacturing facilities in all the three states.
In the last decade, investment in the automotive sector has increased in new geographical areas as well. 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. 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 100,000 car. The company already has made plans to invest in the states of West Bengal and Uttaranchal. 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.
Furthermore, with tax concessions being offered by states like Himachal Pradesh and Uttaranchal through the development of Special Economic zones, the Indian auto component industry is set to broaden its base beyond the three traditional clusters. For example, 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. Such a tax break also helps I making the product attractive and may result in significant volume gains for the manufacturer.
At the same time, the entry of new OEMs like VW and BMW may also initiate the entry of new entrants in the supplier arena.
47
5.6
Aggressive expansion by Indian suppliers

New plant openings announced by Indian suppliers
Comments 14 November 2008 - Modine Manufacturing started a new manufacturing facility in India. Modines 80,000 ft2 manufacturing facility will initially house 75 employees. The facility supplements Modines engineering and design centre which was started in 2007. The company initiated work on the facility in December 2006 with an investment of US$14m spanning three years. 11 November 2008 - Delphi Corporation planned to establish a new facility in India to produce automotive electronic components. The new facility will be built at Oragadam, near Chennai with an investment of INR2.5bn (US$52.4m, 11 November 2008). The company has already acquired land for the plant, which will manufacture products in the areas of controls and security, safety and entertainment and communications. 21 October 2008 - Jai Suspension Systems, a subsidiary of Jamna Auto Industries, started production of suspension springs at its new INR30m (US$601,380) facility at Pant Nagar, Uttarakhand (India). The plant which will assemble leaf and parabolic springs has a capacity of 24000 MTPA. 08 October 2008 - Tata group announced plans to relocate its Nano project to Gujarat. The INR 20bn (US$414m) low-cost car project will be commissioned in Sanand in Gujarat. The new plant along with an integrated vendor park will be built on 1,100 acres of land. The vendor park will house 55 suppliers. The Nano plant is expected to employ 10,000 people directly or indirectly to initially produce 250,000-300,000 cars per annum. 30 September 2008 - Honda Siel Cars India (HSCI) inaugurated its second plant in Rajasthan (India). A new press facility and an advanced powertrain unit for engine components were also unveiled. These will supply body panels and engine components to HSCIs plant in Greater Noida (India). The new plant will export certain engine components and body pressings to Asian countries. 29 September 2008 - Anand Automotive Systems announced capacity expansion plans for the next three years in India. The company will invest INR2bn (US$42.6m, 29 September 2008) to set up 12 new facilities across the country to manufacture various components. In addition, the company will invest in two new facilities in Hubli, Karnataka and Satara, Maharashtra. 16 September 2008 - Stadco inaugurated an engineering centre in Chennai. 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, CAD (computer-aided design) development, CAE (computer-aided engineering) analysis, and production. 15 September 2008 - IAC decided to set up a new manufacturing facility in Chakan near Pune (Maharashtra). Construction work is expected to be completed at the 150,000 ft2 facility by the third quarter of next year. The facility involves capital investment amounting to US$25m. The company plans to produce interior components and systems including instrument panels, cockpits and door assemblies for domestic market passenger cars and medium/heavy duty trucks. 10 September 2008 - Bridgestone Corporation announced plans to invest INR6.74bn (US$150.4m, 10 September 2008) at its Pithampur facility near Indore, Madhya Pradesh (India). The new expansion plan, to be completed by 2011, is expected to increase plant capacity by 3 million tires per year to 8 million units per year. The company plans to manufacture steel-belted passenger car tires. 02 September 2008 - American Axle & Manufacturing announced plans to spend US$73m on its US operations in 2008 and US$30.3m in 2009 in order to support new products and contracts. The company planned two new plants each for Michigan and for India and one each for Thailand, Mexico, Poland and Colombia. Expansions are planned for the company's Michigan, Mexico, Brazil and China plants. 01 September 2008 - Minda Industries opened a new factory at Bidadi, Bangalore (India) for the manufacture of blow moulding parts. The total investment in the plant amounts to INR250m (US$5.68m, 1 September 2008). The company has a technical collaboration with the Indonesain company Kyoraku at this facility, and will supply parts to Toyota and other OEMs. 28 August 2008 - General Motors announced plans to set up an engine and transmission plant in Maharashtra (India). The new engine plant will be located in Talegaon where GMs second vehicle plant is expected to start operations from September 2008. The investment details or the capacity of the new plant have not been disclosed. 20 August 2008 - Dunlop anounced to invest close to INR4.5bn (US$103.9m, 19 August 2008) in a greenfield tire manufacturing facility. The plant to be located in the north-eastern state of Assam will start production in 18 months. The facility will have a production capacity of 50 tonnes per day for trucks and off-the-road tires. 14 August 2008 - JBM Auto Ltd announced plans to invest INR2.45bn (US$57.5m, 14 August 2008) in a plant in Pune, India. The plant will initially manufacture 90,000 units of skin panels, exclusively for the Tata Motors and Fiat joint-venture, formed in October 2006. The plant started production in October 2008. 8 August 2008 - Federal-Mogul announced establishment of a friction products plant in Chennai, India. The facility will produce brake and friction components for light vehicles, apart from friction products for commercial vehicles and railways. The facility will initially span 6,000 m2, on ten acres of land. Nearly 500 new jobs will be created at the Chennai facility, expected to start operations by September 2009. 5 August 2008 - Robert Bosch GmbH announced an investment of INR4.5bn (US$106.3m, 4 August 2008) for its Nashik (India) facility. The company plans to double the production of common rail injectors to 1.3 million units per year with this investment spanning over the next two years. The facility currently produces 500,000 units every year.
Table 5.4:
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
48
Bosch
17 July 2008 - 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, Bosch intends to invest INR23bn (US$536.3m, 17 July 2008) in India between 2006 and 2010. The supplier has not provided any details regarding the capacity of the ABS unit. 16 July 2008 - Hyundai Motors second engine plant in India started operations. The plant, located in Chennai, makes engines for compact cars and supplies to its small car line-up, for vehicles such as the i10 and i30. The automaker spent US$421m on the new plant. 15 July 2008 - Continental inaugurated a new electronic manufacturing plant and a research & development centre in Bangalore (India). The total investment in the 15,000m2 plant totalled INR 2.20bn (US$51.3m, 15 July 2008). The facility will produce electronic components and serve as the new headquarters of Continental India. 14 July 2008 - Umicore announced plans to set up an automotive catalyst plant in India. The plant will manufacture components for 1.5 million cars annually. Scheduled to commence production in 2010, the company is planning to expand its commercial and technical application services in India. 7 July 2008 - GM announced an investment in the range of INR10bn-INR12bn (US$231.7m-US$278m) for establishing a manufacturing plant at its Talegaon facility near Pune (India). The company plans to produce powertrain components including engine and gear boxes at the plant with an annual production capacity of 200,000 units. 4 July 2008 - Delphi planned to expand its operations in India by opening up a new unit in Chennai (India). This unit will produce electronic and safety management system (EMS) products.Delphi has got an approval for investing INR 300m (US$ 69.3m). Initially this unit will produce instrument clusters and then move up with a range of products like air bags, seat belts, immobilisers and body computers. 23 June 2008 - Taiwan-based Mei Ta group planned to establish an auto component manufacturing unit in Nellore, Andhra Pradesh (India). The group plans to invest INR6bn (US$139.7m) in a phased manner through Mei Ta Industrial Company. The 230 acre facility will employ 5,000 people producing auto components and foundry products. 17 June 2008 - Ashok Leyland announced its strategic investment in Albonair GmbH. The investment will be used for the development of vehicle emission treatment products. Financial details of the investment were not disclosed. The company plans to more than double its Albonair's team to 60 in one year. 17 May 2008 - Ceat Ltd set up its proposed INR5-6bn greenfield radial facility in Gujarat. 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 company also set up a truck radial facility near Patalganga, Maharashtra (India) in November 2007. 09 May 2008 - Fiat planned to open a group purchasing office in India to source parts. This move is part of the companys strategy to cut costs by buying more components from low-cost areas to ensure higher competitiveness and better margins. The Purchasing Office in India sources components for cars and commercial vehicles, as well as powertrains. Employee numbers will increase to 50 by 2008 end. 7 May 2008 - BASF planned to build a new engineering plastics plant near Mumbai (India) for automotive components. The company has a large focus on the Automotive segment which is the second largest contributor to the total sales of BASF. Financial details were not disclosed. 7 May 2008 - Gear World opened a new thermal treatment plant for gear manufacturing in Ranjangaon near Pune. Financial details of the investment were not disclosed. 25 April 2008 - Pininfarina SpA announced its plan to set up a research, design and engineering centre in Pune, Maharashtra (India) by the end of 2008. The Italy-based designing and contract manufacturing company will collaborate with Tata Motors which intends to have a minority stake in the Indian venture. Pininfarina will hold the majority stake and management control. 17 April 2008 - 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. Timken India Manufacturing Private Ltd, will be set up at a cost of US$25m. 15 April 2008 - ElringKlinger Group opened its first manufacturing facility in India, located at Ranjangaon near Pune. The company produces gaskets for powertrain applications, primarily for the low-emission gasoline and diesel engines. The zero-emissions plant has been set up with an investment of 5m. The facility is spread over 60,000m2, with a built-up area of 5,600m2. 4 March 2008 Global asset management firm AIG Investments acquired a 14.5% stake in India-based Kinetic Engineering (KEL) for around INR256m (US$6.34m). The investment was made through the subscription of compulsory convertible preferential shares priced at a total of INR 250m (US$3.86m, 4 March 2008) per share. 13 February 2008 Lumax Industries announced plans to invest INR2bn (US$50.4m, 12 February 2008) over the next 15 months to modernise its existing plants and to set up three greenfield manufacturing facilities. Post the investment, manufacturing capacity is expected to go up to 8.5 million light sets per annum from the current six million. The company planned to open new factories at three different locations in India Singur, Pantnagar and Haridwar. 4 February 2008 Headlamp manufacturer Autolite India Ltd framed a INR1bn (US$25.4m, 3 February 2007) expansion and modernisation plan. The plan is aimed at expanding the production capacity to meet increased export orders. The company has received orders of over INR3.5bn (US$88.9m) for the next two years. Autolite has already initiated the construction of manufacturing plant at Rudrapur in Uttarakhand (India). 17 January 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. Construction began in April 2008 and is expected to be completed within 18 months. 15 January 2008 - Faurecia announced plans to set up a new manufacturing plant near New Delhi (India). The plant will produce seating mechanisms and cater mainly to the requirements of Maruti Suzuki India Limited.
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
49
BorgWarner
14 January 2008 - BorgWarner Thermal Systems started construction of a new facility near Chennai, Tamil Nadu (India). It will include manufacturing, training, design services and administrative space for over 100 employees with room for future expansion. Financial details of the investment were not disclosed. 14 January 2008 - Continental planned to set up a new manufacturing unit and a research and development (R&D) centre in Bangalore (India), with an investment of US$25m. 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. 14 January 2008 - 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. Investment figures were not disclosed. 14 January 2008 - Italian engine maker, VM Motori, planned to set up a manufacturing plant in India. The company is likely to set up facility for manufacturing both automotive and non-automotive engines. Motori planned to invest about INR880m (US$22.31m) initially in this project. 07 January 2008 - Caparo Group planned to invest INR35bn (US$890.3m) in setting up an automotive, engineering and aerospace components park in Nellore, Andhra Pradesh (India). The company focuses on both exports and domestic markets. The company acquired a 2,000 acre land from state government for the components park. 28 December 2007 - Yachiyo Industry Corporation set up an automotive components production subsidiary in Rajasthan (India), which became operational in April 2008. The company made an initial investment of INR300m (US$7.65m). 18 December 2007 - India Pistons formed a 50:50 joint-venture with Mahle in November 2007, to manufacture pistons for the new Euro IV compliant engine applications. The Indian supplier plans to invest nearly INR2bn (US$50.58m) in the next two to three years. 18 December 2007 - Kalimati Investment Company, an investment arm of Tata Steel, planned to invest INR2.13bn (US$53.9m) in Steel Strips Wheels Limited (SSWL) in order to buy 10% stake in the company. Chandigarh (India) based SSWL issued about 1.25 million of its shares to Kalamati Investment Company. 14 December 2007 - Apollo Tyres announced its plans to expand the production capacity of its passenger car radial (PCR) tires. The facility produces around 450,000 units per annum. The company invested INR1.08bn (US$27.4m, 14 December 2007) for the expansion, which primarily took place at the Limda facility near Vadodara (India). 30 November 2007 - Continental AG received FIPB approval for investing INR550m (US$13.83m, 30 November 2007) as foreign equity in a proposed joint-venture company, Continental Rico Hydraulic Brakes India Pvt. Ltd. in India. The investment was also used to establish a license and technical assistance arrangement between Continental Teves AG and Co OHG, a 100% subsidiary of Continental AG and the new JV. 28 November 2007 - Mitsuba Corporation started a new production facility in India for motors and generators. The company invested 1.5bn (US$13.8m, 28 November 2007) in setting up the new facility. The company is scheduled to manufacture AC generators and motors used in power window systems of the car at the facility spanning 36,700m2. 07 November 2007 - Sanden Corporation invested 1.5bn (US$13.09m) in setting up a facility in India to manufacture compressors for automotive air conditioners. The new facility is situated near its existing facility in New Delhi. Production at the new facility is scheduled to start in 2009. It will increase the companys production capacity in India to one million units per annum. 01 November 2007 - Wheels India Limited (WIL) announced augmentation of its production capacity by two million units, bringing it to ten millions in 2007 along with a capex figure of INR1000m (US$25.34m). The new facility is expected to begin manufacturing 7,000 units of large wheels for mining trucks, with the provision to raise the capacity to 18,000 wheels in the next three years. 29 October 2007 - Magna International Inc. anounced to set up two manufacturing facilities in India by late 2008 for stampings, door and seating systems and metal products. Financial details were not disclosed. 19 October 2007 - Jamna Auto purchased one of Tata Motors closed units at Jamshedpur to manufacture leaf springs for commercial vehicles and sports utility vehicles. The financial details of the transaction were not disclosed. The company planned to invest INR750m (US$18.9m) for the greenfield unit scheduled to become operational by October 2008. 11 September 2007 - Setco Automotive Ltd. invested INR420m (US$10.3m, 11September 2007) to increase its manufacturing capacity of clutch and clutch parts.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, Gujarat (India). 14 August 2007 - Bosch invested INR2.5bn (44.9m, 11 August 2007) to set up a facility in Coimbatore (India). Boschs facility, located in a Special Economic Zone (SEZ) at Saravanampatty, Coimbatore focuses on designing technologies such as electronic control unit (ECU) for diesel and petrol engines. 10 August 2007 - Omron Corporation setup a new subsidiary in Manesar, Haryana (India), with a paid-in capital of INR150m ($3.7m, 31 July 2007). The subsidiary- Omron Automotive Components India Pvt. Ltd., (OAI) is the first production investment by Omron in the growing Indian automotive market. The subsidiarys business activities include production and sales of automotive electronics such as body control modules and keyless entry devices. 7 August 2007 - Tata AutoComp (TACO) Systems set up a new passenger airbag test facility. The facility inaugurated in December 2007 at Tatas interiors and plastic technical centre is equipped with a testing system from Microsys Technologies based in Canada. 23 July 2007 - Sona Koyo Steering Systems Limited set up an aluminum die- casting and forging facility in India to supply components to the European markets. Sona Koyo received clearance from the board to receive external commercial borrowings worth US$50m, for which the firm tied up with ICICI Bank in India. 20 June 2007 Rane Group invested INR2.5bn (US$61.3m, 20 June 2007) to scale up current production facilities and set up two new plants. The first plant operational by the end of 2007, manufactures engine valves. The second manufactures disc pads for Japanese and Korean carmakers.
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
50
Tata Motors
7 June 2007 - Tata Motors increased its stakes in Automobile Corporation of Goa, from 10% to 21.29%, through a right issue. Automobile Corporation of Goa is one of the subsidiaries of Tata Motors and a major supplier. Besides Tata Motors, another Tata group company- Tata International holds 21.5% stake in the subsidiary. Post the right issue, Tata groups stakes increased to 42.79%. 01 June 2007 Sona invested INR200m (US$4.89m) in a tool and die facility in Haryana (India) and a manufacturing facility near Pune (India). This move increased its annual capacity from 9m to 20m units in 2007. 01 June 2007 - Piaggio Vehicles set up a diesel engine manufacturing facility in Pune (India) to produce 200,000 engines annually. The company plans to invest 65m in the next two to three years towards establishing the facility. The company will start production at the facility from end of 2009. 14 May 2007 - Stanley Electric of Japan bought an additional 20% stake in the Lumax Industries Ltd. Lumax made a preferential issue of 1 million equity shares to Stanley at a price of INR540.03 per share. 10 May 2007 - JK Tire will invest INR6bn (US$147.1m) in the next three years to expand its four existing facilities. The company will invest INR1.2bn (US$29.4m) in the next twelve months to increase the capacity of Off the Road (OTR) tires segment by around 50%. A total investment of INR2.2bn (US$53.9m) was made to complete both these expansions. 04 May 2007 - GKN Driveline planned to invest INR1.15bn (US$27.95m) to establish a new facility in Oragadam region near Chennai (India). The new facility became operational in early 2008 and has an annual capacity of 600,000 vehicle sets. The plant makes sideshafts. 2 May 2007 - Bosch increased its stakes in its subsidiary, Motor Industries Co. Ltd. (MICO) from 60.5% to 80%. The company made an offer to buy 6.4 million MICO shares at a price of INR4000 (97) per share. The move boosted Boschs presence in India by increasing its investment in technology, capital and other resources in the region. 30 April 2007 - Tata AutoComp GY Batteries Pvt Ltd, a joint-venture between Tata AutoComp Systems (TACO) of India and Japanese automotive battery manufacturers- GS Yuasa International, announced plans to invest INR1.60bn (US$38.93m) over the next one year to expand its manufacturing capacity. 10 April 2007 Takata Co. planned to set up a wholly-owned facility in which became operational in early 2008. The company makes seat belts in the new facility. 23 February 2007 - Kalyani Group completed capacity expansion of its commercial vehicles steel wheel plant located in Chakan near Pune, Maharashtra (India). The plant's capacity increased to 800,000 wheels per year. The company also announced its plan to set up a new facility to manufacture steel wheels for passenger cars, next to the existing plant. 20 February 2007 - Bridgestone planned to invest US$50m to US$100m to set up a greenfield plant in India. The new unit is scheduled to make 15,000 tires per day. 19 February 2007 - Hitachi set up an auto parts manufacturing plant in India to supply the OEM in the local markets. 09 February 2007 - Donaldson Co., manufacturer of air and liquid filtration systems and parts announced its decision to expand its manufacturing facility in India. 05 February 2007 - Modine Manufacturing Company set up a production base in Sipcot Phase II industrial estate at Sriperumbudur,Tamil Nadu, India. A fully owned subsidiary, Modine Thermal Systems Private Ltd. was set up to facilitate the new Indian foray. The production facility makes three kinds of heat transfer devices radiator cap and charge air cooler for engines, air-conditioning system for buses, and components for large engines. 31 January 2007 - Behr India, a 60:40 joint-venture between Behr Germany and Anand Automotive Systems, opened a new plant at Chakan, near Pune, Maharashtra (India).The plant manufactures engine cooling modules, heat exchangers including radiators, charge air coolers and condensers. Behr Germany and Anand Automotive invested US$12 million in 2006 and another US$5m in 2007. 17 January 2007 Pierburg planned to set up a manufacturing plant in India, which became operational by 2008. The plant is an assembling unit, but also manufactures exhaust gas recirculating valves (EGR), oil, water and vacuum pumps for diesel engines.
Sona Okegawa
Piaggio Vehicles Stanley Electric JK Tire
GKN
Bosch
TACO Autocomp
Takata Corporation Kalyani Lemmerz
Bridgestone Hitachi Donaldson Co. Modine Manufacturing Company
Behr India
Pierburg
5.7
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. Forecasts for the automotive and components industry do not anticipate a depression for the near future. In the absence of any pressure on sales, Indian suppliers are unlikely to consolidate and existence of small and medium sized supplier entities is likely to continue.
However, a number of suppliers have made acquisitions over the last three years. A number of them have just been realignment and consolidation of businesses. Important amongst them have
51
been Siemens merger of Siemens VDO into itself, Amalgamations Repcos acquisition of India Pistons Repco and Ennore Foundries acquiring Ductron Castings) within large groups.
In a few instances, suppliers acquired controlling stakes in their existing joint-ventures. 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. BCSI will act as Boschs vehicle for the passenger car brakes and ABS market. Similarly, Purolator acquired the 50% stake of its joint venture partner Mahle in their filter manufacturing operations Mahle Filter Systems India.
A number of new entrants have entered the supplier arena through the acquisition of existing suppliers. Important amongst these was the acquisition of Ring Plus Aqua by the Raymonds group and the Ruia Groups acquisition of Dunlop India.
Many large suppliers have acquired very small companies to add on an expertise to their existing operations. Important amongst these was the acquisition of Upasana Engineering and Upasana Components by Sundram fasteners, Rane Brake Linings acquiring Soubhagya Diecast and LG Balakrishnans acquisition of MGM Industries, Swathe Gears and Heat Treaters.
A number of suppliers made strategic acquisitions to increase their foot-print into other areas. Maruti associate supplier Krishna Maruti acquired Mark Auto Industries, 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.
Table 5.5:
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 - Federal-Mogul acquired a 51% stake in Perfect Circle India from the Anand Group in a transaction worth INR170m (US$4.01m, 13 August 2008). 10 July 2008 - KPIT Cummins acquired a substantial part of mechanical design services business of Harita TVS Technologies, a TVS group company. The financial details of the deal were not disclosed. 19 June 2008 - Exide Industries acquired a 51% stake in the Leadage Alloys India for INR350m (US$8.16m, 19 June 2008). 1 May 2008 - Eaton Industrial Systems signed an agreement with Kirloskar Oil to acquire its valves division, which is a part of its auto components business. The sale agreement was valued at INR900m (US$22.23m, 1 May 2008). 24 April 2008 - UMW Corporation Sdn Bhd (UMWC), a subsidiary of UMW Holdings Bhd, acquired two Indian automotive components manufacturers for a sum of RM74.71m (US$23.49m). 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). 12 December 2007 - Argentum Motors acquired Daewoo India, involving assets worth INR7.65bn (US$169.8m, 12 December 2007). The facility will be used as a contract manufacturing centre. It already has an engine and transmission production plant in place, with an annual production capacity of 400,000 units.
Leadage Alloys Kirloskar Oil (Valves division) MKAL, MKD
Automotive Automotive
UMW Corporation
Automotive
Argentum Motors
Daewoo India
Engine & transmission
52
CooperStandard
MAP India
Sealing
18 January 2008 - Cooper-Standard Automotive acquired a 74% stake in Metzeler Automotive Profiles India Pte. Ltd. (MAP India) from Automotive Sealing Systems SA. The acquisition will make Cooper-Standard the biggest weather-sealing manufacturer in India. Toyoda Gosei holds the remaining stake in the company. 25 October 2007 - Key Safety Systems (KSS) acquired 50% ownership in Indiabased Abhishek Auto Industries Ltd (AAIL). AAIL was renamed KSS-Abhishek Safety Systems Pvt. Ltd. 21 February 2007 - PPG Industries and ICI India Ltd entered into an agreement to acquire ICIs premium automotive refinish business. The acquisition was valued at nearly US$12m. 31 January 2007 - Clutch Auto acquired all assets of GKF (Gurukripa Founders and Engineers). The company manufactures high quality CI castings required for auto components. The financial details were not disclosed.
Key Safety Systems PPG Industries Clutch Auto
Abhishek Auto Industries ICI India
Automotive
Automotive
GKF
Castings
5.8
International acquisitions by Indian suppliers
Supported by the strong domestic market, a number of suppliers are now in a position to tap the export markets. While the pioneers in the exports push were suppliers like Bharat Forge and Sundram Fasteners, the trickle is fast gaining in strength and volumes.
A number of suppliers are taking the acquisition route in order to expand internationally. Indian suppliers find a number of advantages in taking over companies abroad.
Advantages of acquiring an international supplier: International suppliers give access to global clients which are difficult to bag otherwise. Bharat Forge benefited from the acquisitions of CDP Aluminiumtechnik and CDP Forge by acquiring a client list including BMW, MAN and DaimlerChrysler. An international acquisition gives an off-shore manufacturing facility to the Indian manufacturer. Bharat Forges acquisition strategy has focused on having production facilities in all its major markets. Indian manufacturers prefer to acquire companies internationally which are not doing well financially. Loss making operations often come at a lower price than they would otherwise cost. They can later on be turned around by good management. Off-shore manufacturing facilities can often be used for high-end manufacturing while low end components can be supplied from the Indian centre. 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. For example Amteks acquisition of Zelter gives the Indian company a strong presence in turbocharger housings.
53
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
54
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 Marellis 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
55
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
56
Chapter 6: Challenges facing Indian suppliers
57
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, Indias 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, Indias 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,
58
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 havent 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 wont 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 youve 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
59
do not match to that bargaining power, they have, 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. So they need to kind of become more proactive I would actually feel that the healthiest thing for the industry would be that dont give us an unreasonable profit but when the input costs shift from the datum that was the foundation of the contract, it should be automatic. said Mr MK Khera, MD, Kinetic Engineering.
Suppliers with an established presence in the aftermarket have used their user end presence to bolster margins. We have an integrated business model by which we are not just manufacturers, we are distributors. 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 believe that the integration that we have built gives us the ability to sustain higher margins. Sustainability of margins depends on the value chain you create said Arvind Singh, MD, Asahi India.
Certain suppliers are also exploring new product streams where they could acquire or leverage existing design and development capability to increase margins. Commodity pricing hardening has been hitting us very badly, because we are here squeezed in between two giants. On one side you have commodity giants, Tata Steel, Essar, Ispat they are commodity kings in themselves and then our consumers the OEMs, because of pressure in the car market, there is a tremendous pressure on cost control from their side. So in between them we are sandwiched with very little bargaining power. We are trying to get into product designing from process designing. 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. In terms of designing a better price because then it is my technology, my engineering and design contribution besides manufacturing said Sanjay Arora, Head Marketing, Automotive Stampings & Assemblies Ltd (ASAL).
Integration and value addition that is really where our whole strategy is focused. 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. That is the best way to safeguard your margins added Arvind Singh, Managing Director, Asahi India.
6.5
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.
60
Elaborating on ASALs plans, Sanjay said, Fiat is coming to India and we are working very hard with them, Volkswagen, 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. If this calls for a greenfield investment we will not hesitate in doing that. We have already established a plant in Uttaranchal for Tata Motors, we are adding a greenfield project for Fiat in Pune and may be one more for tool room. Luckily for us we are a part of a big group investment is not an issue.
Other Pune based suppliers have a similar opinion about the upcoming projects in the region and their opportunities. Due to the influx of engine manufacturers and automotive manufacturers coming into the Pune region specifically where we are located. 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, Vice President & COO, Victor Gaskets.
Suppliers in other parts of the country are adopting quality and productivity improvement programs. We are definitely not chasing numbers. We are investing a lot more into engineering. We are also investing into hard infrastructure, improving our process flows having it to be more inline. 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. So want to improve on process engineering and application engineering, confessed Anil Aggarwal, Managing Director, Sterling Tools.
Meanwhile, other vendors are observing the roll-out of new projects, Whenever new players come to India they have their own localization programs. In phase-I of this localization chassis and body panels are localized; normally they do not touch the engine and transmission systems, local sourcing for which is deferred till the second phase added RK Sud, Executive Director, Sigma Freudenberg NOK.
6.6
Establishing export credentials
The perception about Indias product quality has improved substantially in the last five years. This has helped local suppliers in attaining export contracts. Overall the concept of India is being sold fairly well. So a part of our job is done to that extent said Sharad Agarwal, Head- marketing, Spectra Group. 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. India has completely transformed. 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. For small
61
and mid-sized models India will be the production hub Milind Ajgaonkar, Vice President, Marketing, Bagla Group.
Finding China to be more cost competitive, 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. They have looked at China in the initial years and they have most likely figured that for much of the things that are aesthetic, less engineering critical China works very well for them in terms of cost, in terms of delivery time cycles, in terms of development time cycles or dies and moulds which are very critical for aesthetically important components, but when it comes to engineering - when you look at engine, transmission, brake products you are tinkering with the reliability and the general customer perception of quality. And therefore that is where India stands a chance stated MK Khera, Managing Director, Kinetic Engineering. Indian automobile manufacturers themselves traditionally did much of the hardcore engineering work themselves. Today they are recognizing the merit of outsourcing, 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, even the older companies. And I think thats where the opportunity for the supplier industry really is Khera added.
However the challenges of international supplies have only been realized recently. Commenting on these Khera said, In terms of quality and delivery a promise made is a promise made. 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. Its inherent in our chemistry. This is something Indian business do all the time, we make promises and we give ourselves the latitude to err here and there and we think that its all understood. But this is absent in the international business. India has to learn to respect, the word given, to respect the word written by the customer, the schedules which are given to us by the customer are sacrosanct, they are cast in concrete. Certain suppliers with relatively lesser experience of supplying internationally had to air-ship components when their production lines failed to match the planned timeline.
6.7
Emerging clusters
In less than five years, four new automotive clusters have emerged. Haridwar, Pant Nagar, Sanand, Chakan. In each case, the local governments are offering direct tax holidays upto ten years, lower and in some cases complete removal of indirect tax levies for five year periods and extended support with assured power supply, water and soft loans. While the benefits offered
62
differ from case to case even in the same cluster, the overall manufacturing cost has considerably reduced prompting OEMs like Bajaj, Hero Honda, Ashok Leyland and Tata Motors to announce plant openings in these areas. Suppliers have also been invited to dedicated vendor parks at the new locations.
Interestingly, Sanand which gained a cluster status overnight after Tatas 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. 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.
Amid land acquisition problems, three dedicated automotive - Special Economic Zones have been sanctioned by the Government of India. These include the, Adityapur SEZ in Jharkhand, Auto and engineering special economic zone (SEZ) being developed at Rajkot in Gujarat and SIPCOT SEZ in Tamil Nadu.
The auto industry has also been lobbying for virtual SEZ where export-oriented units (EOUs) can avail of benefits under the SEZ Act, without being bound within a marked area.
6.8
Logistical spreads new clusters
Increasingly, suppliers are finding merit in establishing cluster-specific and customer-centric manufacturing facilities due to the greater scale of volume. 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. So primarily the volumes we have allow us to operate from two 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, Managing Director, Asahi India.
6.9
Attrition
The shortage of skilled manpower, engineers and managers has led to a sharp increase in payouts and consequently attrition rates have also increased. At operator level it hurts but we do a lot of training. We hire fresh recruits every year diploma holders, engineers, ITIs, so we constantly investing in training. What bothers us more is people at higher levels with a skill set of
63
years of experience. That is the most difficult part, to duplicate that in your training added Anil Aggarwal, Managing Director, Sterling Tools.
However, retaining employees especially mid and higher level managers has been a difficult task, accomplished often at the cost of passing disproportionate pay hikes. Continuity has been a very big problem. 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. To make matters worse, companies are willing to give 100% pay hikes, it is difficult for us to do the same because then it would spoil the structure of the organization. It has to be gradual. Employee turnover is a big problem, continuity and consistency takes a big toll said Sanjay Arora, Head marketing, ASAL.
6.10
Introducing new materials/ technologies
To match global product standards, suppliers are increasingly looking at adding new technologies and materials to their portfolios. And more mature suppliers have become selective in their choice of programs and components. 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. We are not gunning for new business with existing products we want selective business added Milind Ajgaonkar, Vice President, Marketing, Bagla Group.
With Marutis recent drive to reduce component weight for every component by one gram, suppliers offering alternative materials have become aggressive. Other OEMs too are planning vehicle weight reduction programs. 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, the number of parts so that is basically a design advantage that cannot be achieved from sheet metal. And then you have the light weight and flexibility advantage of a composite panel. What you can do with composites is simply not possible in sheet metals said Ajit Lele, Managing Director, Mahindra Composites.
Ajit added, China has been witnessing growth in composites as high as two times every year. India will witness a phenomenal rate of growth of composites as weight and design flexibility become imperative.
64
6.11
Currency
The high pace of growth of the Indian economy has also adversely hurt the earnings of suppliers with considerable exposure to export earnings. 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. 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, MD, Kinetic Engineering. 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.
6.12
R&D impetus
To strengthen their prospects of supplying to future programs, Indian suppliers are strategically opening development centres at locations closer to the parent OEMs. In two separate cases, 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. Such centres also help in international liasoning. As most vehicles in India have a Japanese origin so their design centres are in Japan, 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. This leads to speedy development of new products said SK Bhatia, Sr Vice President, Marketing, Fiem Industries.
6.13
Going global
Following in the footsteps of Indian OEMs who are setting up international assembly and manufacturing facilities, suppliers have been following OEMs to new geographies. Endurance, Minda and Subros have made considerable investments in the ASEAN region. Working on a two pronged strategy, 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.
Local assembling has also been used to lower the import duty disadvantage. By locating our assembly plant in Iran, we gain a 15% cost advantage. Fully assembled products attract a 25%
65
duty in Iran and semi assembled products would attract a 10% duty said Marketing Manager, Pricol.
Vinod Sharma,
Another supplier Varroc has been expanding its international footprint aggressively and aspires to become a leading global supplier of engine valves. The challenge for us is that we have to upgrade our technology, we have to compete with global players. India is a very small player including all Indian suppliers (of valves) there are four of us. All put together we do 100m valves. While Eaton and TRW the biggest players individually do more than 500m each. So to reach that stage we have to bag some orders, a lot of investment and high capital investment needs to be made. 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, head, Marketing, Varroc Group.
However not everyone is keen on establishing an international base yet, Our OEM (buyers) tell us that that India and China will constitute roughly 15% of their requirement by 2008 and further 20% by 2009. And then we tend to loose your cost competitive advantage because in either case we employ the best consultants from Europe . This balloon of low cost country would only be with us for the next five years. So when this balloon leaves us we shoud chase it to the next country. That would be the time to move outside. So when we become less competitive then we would be ready in other bases. 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, Vice President, Marketing, Bagla Group.
66
Chapter 7: India OEMs and their product plans
67
Tata Motors
Tata Motors is the dominant player in the Indian truck market and amongst the top-three players in the passenger car segment. In 2008, the company accounted for more than 12% of the total passenger car market in the country.
Tata sells the Indica and Indigo in the B and C1 segments respectively and also has a bunch of utility vehicles, including the Safari SUV, the Sumo Grande and Sumo Victa UVs.
The Indica has seen a new generation platform being introduced this year in the form of vthe Indica Vista. However, 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).
Towards the end of 2009, Tata Motors is expected to launch the new generation of the Indigo. Like the Indica, we expect the new and old generation Indigos to co-exist for sometime.
The Nano has been introduced but due to the Singur land-acquisition crisis and shift to limited production ta Pantanagar plant, we expect Tata Motors to face considerable production constraints till the end of 2010. Tata has promised delivery of 100,000 Nanos by the end of 2010 after which the main plant at Sanand (Gujarat) will start production. The Nano is expected to add significant volume to Tatas passenger car sales and will help the company gain marketshare.
Due to the global slowdown, drop in HCV sales in India, and the losses at JLR, Tata is under financial constraints and this may delay some of the future model programmes like the Prima.
Maruti-Suzuki
Maruti-Suzuki has a dominant 54% share of the Indian passenger car market. The carmaker is a small car specialist and has been freshening up its product portfolio to capture all segments of the market. Currently the company offers the 800, Alto, Zen Estilo, Wagon R, and A-Star in the Asegment; the Swift and the Ritz in the B-Segment; the Swift DZire in the C1 segment and the SX4 in the C2 segment. The company also offers the Omni and Versa microvans.
The Alto is Indias largest selling car and will continue to have a dominant market position in the near term. Maruti is working on a facelift for the car. The popular Wagon R is also ready to be replaced and a replacement is expected in 2011. The zen Estilo would also be replaced and
68
moved to the new Alto platform. The Swift would be replaced in 2011 as well, making way for as new platform.
In the near term, 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.
Keeping in mind the Nanos expected popularity, Maruti is also rumoured to be working on a small car that would slot below the current portfolio.
Hyundai Motors India

Hyundai has been fairly successful in the Indian market and is currently the number two carmaker in India. The company also uses the manufacturing facility in Chennai as an efficient export base, exporting the i10 globally from here.
While the Santro / Atos / Atos Prime has been replaced globally by the i10, Hyundai continues to sell both models together in India. This is because the Santro still sells in healthy numbers. The company has kept the same policy for the getz and its replacement the i20.
For the future, the company is working on a small car that would be slotted below the Santro. This would be Hyundais response to the Tata Nano. A three-box version of the i20 is also reported to be under development. This would counter the Swift DZire from the Maruti stable.
Mahindra
Mahindras recently introduced Xylo utility vehicle / minivan has been fairly successful. The company is reported to be working on a replacement for its popular Scorpio SUV. Mahindra is also reported to be working on a full-size SUV, to be targeted higher than the Scorpio. This SUV would also be targeted at the international (USA) market.
On the Mahindra-Renault joint-venture side, the Logan has not been doing well, thanks mostly to its conservative looks. Mahindra-Renault plan to counter this by introducing the Sandero, a (better looking) hatchback variant of the Logan. Also on the cards is the SUV / crossover variant of the Logan.
69
Toyota
Toyota currently sells the Innova, Corolla and camry and would introduce the Fortuner SUV in the market soon. The companys entry into the volume segment would be driven by a small car and its three-box variant that the company has under development. Both of these are based on the NBC2 platform and are targeted at emerging markets like India. Both would be introduced in 2010.
VW
Volkswagen will introduce the Polo in India shortly. The company is also working on a three-box variant of the Polo targeted at the Indian market specifically. The poplo would be the first volume product from VW in India.
Also under development is a small car based on the UP! Concept. The small car is being developed as a low-cost car and is expected to be priced at less than INR 300,000.
Ford
Ford is planning to launch the next generation Fiesta in the Indian market. The next generatuion Fiesta is a sharper and slightly smaller design and is targeted at the volume segment of the market. The company is expected to keep the new Fiesta going concurrently with the current generation on sales in India.
GM
GM sells the Spark, Aveo (sedan), Aveo U-Va (hatchback), Optra and Captiva in the Indian market. The company is working on introducing the next generation Spark (M300) in the Indian market by the end of the year. The new Spark is expected to follow the Beat concept.
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. Both of them would be replaced in 2010.
Nissan
Nissan is setting up a large manufacturing facility in Chennai. Not only will the facility manufacture small cars for the Indian market, it will also be a manufacturing base for the UK and European
70
markets. Nissan will manufacture the next generation Micra / March at Chennai alongwith their three-box variants.
New Truck ventures

The Indian market will see a number of new truck ventures being introduced in the near future. Main amongst these would be Ashok Leyland-Nissan, Force-MAN, Mahindra-Navistar, Daimler, Kamaz and Hino.
Ashok Leyland and Nisan have announced a joint-venture to manufacture LCVs in India. However, owing to the conomic slowdown and the collapse in commercial vehicle sales in india, the two companies are re-xamining the plans and may go forward with a reduction in planned volumes.
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.
Daimler had entered into a joint-venture with the Hero group to manufacture heavy commercial vehicles. However, the Hero group has now decided to withdraw from the venture and Daimler will go at it alone. Daimler trucks are expected to be priced at the high-end of the market. The company is also expected to introduce commercial vehicles under the Mitsubishi-Fuso brand, and not Daimler.
Kamaz has entered the Indian market and has plans to manufacture here. The range would be heavy commercial vehicles. Hino has introduced its range in India and is currently importing units from Thailand. Manufacturing in India is expected to start from 2012.
71
Chapter 8: Company Profiles
72
Amalgamations Group
Engine components, batteries, clutches

Address
Amalgamations Private Limited 861/862, Anna Salai Chennai- 600 002 Tamil Nadu India
Tel: +91 44 2858 4918 Fax: +91 44 2858 3179 Internet:

http://www.amalgamationsgroup.com
Amalgamations Group is one of India's largest light engineering groups consisting of 43 companies. Its operations include automotive components manufacturing, trading and distribution, services and plantations. The automotive business comprises nine automotive components companies including diesel engines, forgings, fuel-injection systems, gears, metal cutting tools, paints, pistons, transmissions and tyre retreading.
In 1938, Amalgamations was established as a holding company for six companies, which have grown over time to 43 companies. Its automotive supplier business consists of nine companies: Simpsons & Co Ltd: formed in 1840 to manufacture coaches, carriages, motorcars, steam passenger buses, railway coaches and public service vehicles. In 1955, the company commenced production of diesel engines through an alliance with Perkins, UK, and it now supplies diesel engine products ranging from 20 to 110 bhp. The company has two manufacturing facilities in Chennai (Tamil Nadu). The company manufactures engines meeting Bharat Stage II norms for on-highway applications, Bharat Stage III, US Tier I and US Tier II norms for tractor applications. TAFE- Engineering Plastics Division: manufactures high precision tools and custom-moulded engineering plastics from its two facilities in Bangalore (Karnataka) and Maraimalainagar (Tamil Nadu). TAFE Engineering Plastics Division supplies to domestic clients such as General Motors, HM Mitsubishi, Iveco, Kyoto, Tata Johnson Controls, Lear, Tata Toyo Radiators, Toyota Kirloskar Motors and Visteon. India Pistons Ltd: started operations in 1949 as India's first automotive ancillary manufacturing unit, in technical and financial collaboration with Associated Engineering Plc (UK), a part of Federal Mogul. The company manufactures cylinder liners, pins, pistons and rings. The company has three manufacturing units located around Chennai (Tamil Nadu). IP Power Cylinder Systems Ltd, a wholly-owned subsidiary of India Pistons, was established in 1994 for the production of cylinder liners. IP Rings: supplies speciality steel piston rings and several transmission components using orbital cold forming technology. The company has Ashok Leyland, Eicher Motors, Ford, Hyundai Motors India, Mahindra & Mahindra, Maruti Udyog, Simpsons, Tata Motors and TVS Motors as its customers. Bimetal Bearings Ltd: supplies engine bearings, bushings and thrust washers to OEMs in the passenger car, HCVs, LCVs, tractors, industrial engines, defence and railway sectors. The company has a presence in the aftermarket with its brand Bimite. Its manufacturing facilities are located at Chennai, Coimbatore and Hosur (all three in Tamil Nadu). 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, HCVs and tractors. The company supplies to Ford India, Hyundai Motors India, Mahindra & Mahindra, Maruti Udyog, TAFE and Tata Motors.
Senior Officers
A. Sivasailam, Chairman A. Krishnamurthy, Vice Chairman K Sankaran, Executive Director, Operations R Krishnan, Executive Director, Finance & Marketing
Products
Amalgamations Repco : Clutch driven plates, clutch cover assemblies, clutch carbon release bearing assembly India Pistons: Cylinder liners, pins, pistons, rings IP Rings: Bevel gears, grey cast iron steel rings, nifflex expander based three piece oil rings, nodular iron steel rings, pinions, special alloy steel rings, synchrocones Bimetal Bearings: non overlay plated engine bearings, overlay plated engine bearings, copper lead bearings, large diameter bearings, flange bearings, bushings, thrust washers Amalgamations Valeo Clutch Pvt Ltd: Automated manual transmissions, automatic transmissions, CRC & CSC (Metallic &Plastics), diaphragm clutches, dual mass flywheels, flexible flywheels, hydraulic actuators- CMC, self adjusting
73
technology clutches, self centring clutch release bearings, solid flywheels India Pistons Repco Ltd: Flywheel starter rings gears
Shardlow India Ltd: incorporated in 1960 as a manufacturer of precision forgings for crankshafts, axle beams, stub axles, gear blanks and steering arms. The company operates two forging units one each in Chennai and Hosur (both Tamil Nadu). Shardlow India supplies to Ashok Leyland, Kirloskar Oil Engines, Simpsons, TAFE, Tata Motors and defence establishments. Amalgamations Repco Ltd: Incorporated in 1967, Amalgamations Repco manufactures clutch and brake systems. India Pistons Repco Ltd: Incorporated in 1962 for the production of flywheel starter ring gears. The company has a total annual production capacity of 1.2m flywheel starter ring gears with two manufacturing facilities near Chennai (Tamil Nadu). It was merged into Amalgamations Repco in 2005. The company supplies to Ashok Leland, Hyundai India and Tata Cummins.
Plants
India (35)
Sales
Group: INR55bn (869m, 31 March 2008)
Employees
c. 13,000 (2008)
The Group is a conglomerate having 43 companies with 34 manufacturing facilities and 12,500 employees. Amalgamations Group's major customers include all major OEMs in the country.
Recent Developments
Corporate strategy In recent years, 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. The Group has developed a strong relationship with almost all the OEMs in the country, facilitating the global one ones to speed up their localisation programs. The Group is focusing on exports and aftermarket to improve margins. Acquisitions In July 2005, Amalgamations Repco merged group company India Pistons Repco with itself. Joint-ventures In December 2007, India Pistons entered into a joint-venture agreement with Mahle, to make pistons for Euro IV compliant diesel and petrol engines. India Pistons has hived off its facility at Maraimalai Nagar in favour of the new entity where the two partners hold equal equity. IP Pins & Liners Ltd is a joint-venture within India Pistons Limited set up in 1988 at Maraimalainagar (Tamil Nadu, India) for the production of precision heat treated and machined steel parts for the automotive industry. IP Rings Ltd is a joint-venture between the Amalgamations Group and Nippon Piston Ring Company Ltd (Japan). IP Rings Ltd has a technical tie-up with MIBA (Austria) for carbon friction lining of synchrocones and other synchronizer components. Bimetal Bearings is a joint-venture between Amalgamations Group, Repco (Australia) and Clevite Corporation (USA). 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, manufacturing process upgradation and introduction of contemporary overplay plating process. Amalgamations Valeo is a joint-venture between Amalgamations Group and Valeo (France). Shardlow India was formed as a joint-venture between the Amalgamations Group and Ambrose Shardlow (UK). India Pistons Repco was formed as a joint-venture between the Amalgamations Group and Repco (Australia). Contracts India Pistons Repco is the single-source supplier of flywheel starter ring gears to Ashok Leyland, Hyundai Motors India and Tata Cummins. Infrastructure TAFE Engineering Plastics Division has an in-house tool room facility with
74
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 Repcos 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.
75
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 Amcos 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
76
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.
77
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. Amforges 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
78
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.
79
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 groups 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 Amteks business. During the last two years, Amtek Group has grown by making acquisitions. The companys acquisitions in Germany, UK and USA have increased its global presence tremendously. The consolidation of Benda Amteks 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 groups 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. Fords role in scaling Amteks 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 companys 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$120m in 2008, Amtek has high risk business model due its dependence on UK. Amtek has been shifting forging and foundry operations of acquired units to India while positioning its international facilities as development and precision machining centres. Significantly, the company has also signed two joint ventures, both focusing on manufacturing components in India for exports. In the domestic market, Amtek has acquired a technical license from Teksid to
80
manufacture engine blocks for Suzuki Powertrain and Tata Fiat as a single source supplier. The 1.3L Fiat Diesel engine is being used in three successful platforms and is expected to be introduced on more platforms in the coming years.
Acquisitions In November 2007, Amtek acquired UK based, Triplex Ketlon Group for an undisclosed sum. In 2006, Triplex Kelton recorded sales of US$ 152m. In June 2007, Amtek acquired JL Frenchs UK based HPDC Aluminum operations. Acquired operations include designing, testing, rapid prototyping, precision machining and assembly facilities. In February 2006, Amtek announced 100% acquisition of UK-based Sigma Cast Group Ltd. which is one of the largest suppliers of turbocharger components in the world. Sigma Cast group has 100% owned subsidiary Sigma Cast Iron Ltd. This acquisition will help add customers like General Motors, Ford, Land Rover, CNH, Dana. In July 2005, Amtek acquired Zelter GmbH, a machining company supplying to automotive OEMs like Daimler, Ford, Opel, Borg Warner, Garrett, AEK, InterForm, GKN among others. The company has two production facilities in Germany. Zelter is counted amongst the top-three manufacturers of turbochargers worldwide. Amtek acquired a 70% stake in the company in a deal valued at 28m. Amtek plans to hike its equity in the Zelter to 100% by 2008. The deal made Amtek amongst the largest manufacturers of turbochargers in the world. In January 2005, Amtek Group acquired 100% equity of Amtek Investment US Inc. which in turn wholly owns Amtek Gears Inc. The company has a manufacturing facility in Bay City, Michigan (USA) and is engaged in the manufacture of ring gears. In October 2003, Amtek Group acquired GWK Automotive for INR1.7bn (3.23m, 31 October 2003) in an all cash deal. GWK is the largest machining company in UK with expertise in production of modules and assemblies. In August 2003, Amtek Auto acquired Lloyd (Brierly Hill) for an undisclosed price. Lloyd is the largest manufacturer of flywheels and ring gears in UK. In December 2002, Amtek acquired USA-based Smith Jones Inc, a manufacturer of flywheel ring gears for a total consideration of US$20m (19.08m, 31 December 2002). In end 2002, Amtek Group acquired a 62.57% stake in Ahmednagar Forgings for INR55.2m (1.1m, 31 December 2002). 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, passenger cars, LCVs, M & HCVs and other applications like locomotives, stationary engines and earth-moving equipment. Also in 2002, Amtek acquired Midwest Manufacturing Co., USA. Midwest is the largest ring gear manufacturer in the US. During the past three years, the group has acquired small companies like Wesman Halverscheidt Forgings, Indsil Auto Components and Chamundi Motors in India. Financial details of these acquisitions were not disclosed. Joint-ventures In November 2007, Amtek entered into a technical alliance with Teksid for manufacturing aluminum cylinder blocks for Suzuki Powertrain, Tata and Fiat. In April 2007, Amtek signed a joint venture with Belgium based VCST for manufacturing gears and shafts at Pune, India oriented towards the export market. In November 2006, Amtek signed a joint venture with Magna Powertrain for manufacturing flexplate assemblies. The unit is essentially focused on supplying assemblies to Magnas customers in Asia and Europe. In July 2005, 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. Maruti Udyog has nominated this JV as the sole supplier of fractured connecting rod modules for its diesel engine plant at Manesar. In 1999, Amtek Group entered into a joint-venture with Ateliers de Siccardi (France) to set up Amtek Siccardi. The company is into the manufacture of
81
machined crankshafts for LCVs and farm tractors. In 1997, Amtek set up Benda Amtek, a joint-venture with Benda Kogyo Ltd (Japan). The company is into the manufacture of flywheel ring gears and assemblies. Amtek also has a technical collaboration with Aizen (Japan) for connecting rod assemblies.
Investments Amtek Group is on an expansion path increasing its existing installed capacity as well as setting up new units. Recently it has made various announcements regarding its expansion plans. Amtek has announced an increase in machining capacity at Dharuuhera (Haryana) and Baddi (Himachal Pradesh) plants. The forging division of Amtek Auto, Ahmednagar Forgings is expanding its forging facility at Pune (Maharashtra) by commissioning of 6,000 ton Ajax forging press line. It is also expanding its facility at Gurgaon (Haryana) by commissioning of 2 new Smeral 1,000 ton forging presses. 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, for producing components up to 250 kg. Also on the expansion plan is its Coimbatore (Tamil Nadu) foundry unit by commissioning 2nd Disamatic 2110 moulding line. Amtek Auto announced a new 12 acre green field machining facility to be established at Gurgaon (Haryana) with a covered area of 200,000 sq. ft. Amtek has established a new manufacturing facility at Sanaswadi, near Pune (Maharashtra), spread over 55 acres. This facility includes forging, casting and machining operations. Contracts IN 2007, Suzuki Powertrain and Tata Fiat mandated Amtek as the sole supplier of aluminum engine blocks for the 1.3L Fiat Diesel engine production programs. In 2005, Cummins USA awarded Amtek with a contract for the supply of ring gears and assemblies for their heavy diesel engine manufacturing operations. Also in 2005, Amtek won a global sourcing contract from John Deere Worldwide for the supply of components for three agricultural platforms. In the same year, 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.
Financial Overview
In the financial year ended 30 June 2008, Amtek Autos sales grew 7.2% to INR12.83bn (189.54m, 30 June 2008) over INR11.96bn (217.87m, 30 June 2007) in 2007. Profit before tax was INR3.15bn (57.43m, 30 June 2008), a decrease of 1.6% compared to INR3.2bn (55.18m, 30 June 2007) in 2007. The companys net profit for 2008 was INR2.63m (47.93m, 30 June 2008), a decrease of 7.96% over INR2.86bn (49.24m, 30 June 2007) in 2007. The results do not reflect the financial performance of other Amtek Group companies.
Year 2008 2007 2006 Year 2008 2007 2006
Gross sales, INR m 12823.9 11957.57 8732.8 Gross sales, m 189.54 217.87 150.47
Operating profit, INR m 4381.7 3853.92 2893.4 Operating profit, m 79.83 66.40 55.18
Profit before tax, INR m 3151.9 3202.5 2183.6 Profit before tax, m 57.43 55.18 41.64
Net Profit, INR m 2630.5 2857.8 1612.2 Net Profit, m 47.93 49.24 30.74
Outlook
Amteks export focus has made it the largest precision machining company in the
82
UK. However the current economic scenario will slow down Amteks export plans significantly. The companys pace of acquisitions has also slowed down as it has been consolidating its operations.
83
Anand Group
Diverse range from engine parts to adhesives
Address
Anand Group, 1 Sri Aurobindo Marg, New Delhi - 110016
Anand Group is amongst India's leading manufacturers of automotive components and systems. The company derives nearly a fifth of its revenues from exports with total sales estimated at US$634m in 2007.
The group is a closely held setup of 14 companies: Gabriel India: is the flagship company of the Anand group. Founded in 1961, Gabriel India is one of Indias largest manufacturers of shock absorbers and related ride control equipment and engine bearings. Perfect Circle India: is the largest exporter of piston rings in India with 45% of the production being exported. The company cater to the need of OEMs and the aftermarket with a manufacturing facility in Nashik (Maharashtra, India) consisting of a casting plant and a piston ring manufacturing plant. Perfect Circle has a 100% Export oriented Unit for export of ductile (SG Iron) castings. The company also manufactures castings. Perfect Circle domestic client list comprises of Maruti Suzuki, Mahindra & Mahindra, TAFE, Cummins, Ashok Leyland; while exports are shipped to PSA Europe and other OEMs. Anfilco Ltd., established in 1979, manufactures air filters and air filtration systems for gas turbines, rail locomotives and clean rooms. Emcon Technologies India: Established in 1997, for the production of exhaust muffler assemblies, catalytic convertors, instrument panel reinforcement assemblies and door side impact beams. The company has plants at Banaglore and Chennai. The company supplies to Ford India, Toyota, International Tractors and Caterpillar India. Valeo Friction Materials India: was set up in 1997 for the production of waterbased clutch facings free from asbestos, lead, organic solvents, aramid fibre and ceramic fibre. With an installed capacity of 6m facings a year at a manufacturing facility at Chennai, Valeo Friction supplies to most OEMs through various clutch manufacturers like Amalgamations Valeo, Luk India, Ceekay Daikin, Maindra Sona, Amalgamations Repco, Clutch Auto, Jay Hind Industries, Gujarat Setco, Automobile Products of India, Hind Auto, Andhra Sinter, Welset Engineers Behr India: was established in 1997 for the design, development and production of air conditioning systems, engine cooling components and heat exchangers. The company serves domestic and offshore client base from a plant at Chakan, Pune. The company also has an Export oriented Unit for making high quality heat exchangers and tubular components. The establishment also acts as a global sourcing office for Behr exporting parts like wiring harnesses, EGR parts, gravity die castings, pressure die castings and rubber parts. The company supplies to OEMs like Mahindra & Mahindra, Tata Motors, Ashok Leyland, Eicher Motors, Tata Cummins, Renault, GM. The company also exports to behr set ups in Germany, France and America. Spicer India: was established in 1993 for the production of axles, drive shafts and universal joints. The company operates four facilities, an axle plant at Chakan and three drive shaft facilities at Jodalli (Karnataka), Satara and Hosur. The Jodalli plant undertakes component production while driveshaft assembly is done at Satara. The Hosur facility is a 100% Export oriented Unit. Additionally, the Jodalli and Satara plants separate divisions catering to Dana. In India the company supplies to Tata Motors, Ford, Ashok Leyland, GM, Mahindra & Mahindra, Force Motors, Daimler Chrysler, Eicher Motors. The company exports to Toyota, Ford, GM, Daimler Chrysler, Hino through Danas network. Victor Gaskets: supplies gaskets for automotive and non-automotive application in India from its plant in Pune. In India Anand Group supplies to Cummins India, Mahindra & Mahindra- Automotive & Tractors, Simpsons & Co., Hindustan Power Plus, Caterpillar, Tata Motors, Ashok Leland, New
Tel: +91 11 26564542 Fax: +91 11 26866040 Internet:

http://www.anandgroupindia.com
Senior Officers
Deep C Anand, Chairman CS Patel, CEO Deepak Chopra, CFO & President KN Subramaniam, Managing Director Gabriel India Ltd. Sandeep Balooja, Senior Director, Business Development Arvind Kumar, Chief Information Officer Charanjeet Singh, Corporate Controller MS Shankar, COO & Vice PresidentVictor Gaskets India Ltd. BD Singh, COO- Spicer India PKSV Sagar, COO- Anfilco Dr KJ Rao, Head, Operations- Henkel Teroson PKSV Sagar, COO- Chang Yun India S Sarathi, COO- Emcon Technologies India Sunil Kaul, COO- Behr India JS Chung, Managing Director- Mando Brake Systems India K Raghavan, Director- Valeo Friction Materials India Ganesh Pai, COO- Haldex India
Products
Adhesives, sealants and coatings, air brake components, automotive filters, axles and propeller shafts, car care products and coolants, HVAC components, engine bearings, exhaust systems, gaskets, friction material, hydraulic brakes, piston rings and castings, shock absorbers, struts and front forks and synchronizer rings
Plants
India (37)
Sales
US$634m (401.52m, 31 March 2008) (Year to 31.03.08)
84
Employees
c. 7,500 (31 March 2008)
Holland Tractors, Ford India, GM, John Deere, TVS Motors, Avtec, Lombardini India, Greaves India. The company also exports to OEMs such as Lister Petter, UK and Iveco, Italy and aftermarket operations of Clevite Engine Parts, Holden Spare Parts Organisation- Australia. Chang Yun India: was established in 1992 as a manufacturer of synchroniser rings for automotive applications. The company has a facility in Gurgaon with an installed capacity of 5.5m rings per annum and supplies to Maruti Suzuki and Hyundai Motors, India. Mando Brake Systems India: was established in 1997 for the production of brake systems with a production facility at Chennai. The company supplies to Hyundai India, Ford India, Mahindra & Mahindra and GM. Henkel Teroson India: was established in 1997 for the production of adhesives, sealants and coatings. The company has plants at Gurgaon, Parwanoo, Pune and Chennai with supplies to Ford India, Hindustan Motors, Honda Siel, Hyundai India, Maruti, Mahindra & Mahindra, Toyota Kirloskar Motors and Tata Motors. Haldex India: was established in 1998 for the production of manual and automatic slack adjusters for air brakes of commercial vehicles. Haldex India has two facilities at Nashik and supplies to Ashok Leyland, Eicher Motors and Tata Motors. The company also exports to Haldex group companies globally.
Anand group comprises 18 companies, spread across 13 locations with 37 manufacturing plants in the country. The company's major domestic clients include, Ashok Leyland, Briggs & Stratton, DaimlerChrysler, Eicher Motors, Escorts, Fiat, Force Motors, Ford, GM, Hero Motors, Hindustan Motors, HMT, Honda, Hyundai, L&T John Deere, LML, Mahindra & Mahindra, Maruti-Suzuki, Mitsubishi, New Holland, Piaggio, Punjab Tractors, Royal Enfield, Same Greeves, Sonalika, Swaraj Mazda, TAFE, Tata Motors, Tatra, Toyota, TVS and Yamaha.
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. Group company, Mando Brake Systems has recently added passenger car shock absorbers and struts to its product line. The company is eyeing converting its licenses into joint-ventures, where the market is growing. 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. Joint-ventures Perfect Circle India is a joint-venture between Dana Corporation, USA and the Anand Group. Mahle Filter Systems India is a joint-venture between Mahle Filtersysteme GmbH, Germany and Anand Automotive Systems. Emcon Technologies India Ltd is a 74:26 joint-venture between Emcon and Anand Automotive Systems. Arvin Exhausts also has a technical license arrangement with Sango, Japan for manufacturing products for Toyota. Valeo Friction Materials India is a joint-venture between the Anand Group and Valeo, France. Behr India is a joint-venture between Behr, Germany and Anand Automotive Systems. Spicer India is a joint-venture between Dana Corporation, USA and Anand Automotive Systems. Victor Gaskets India has a technical tie-up with Dana Corporation, USA for non-asbestos gaskets. Chang Yun India is a joint-venture between Chang Yun, Korea and Anand Automotive Systems. Mando Brake Systems India is a joint-venture between Mando Corporation, Korea and Anand Automotive Systems. Mando Brake Systems has a technical license agreement with Continental Teves, Germany. Henkel Teroson India is a joint-venture between Anand Automotive Systems
85
and Henkel Teroson GmbH. Henkel Teroson has an additional technical agreement with Sunrise MSI.
Investments In January 2006, Haldex India announced its plan to set up a Self-setting Automatic Brake Adjustor (S-ABA) manufacturing plant at Nasik, Maharastra with a total investment of INR100m (1.88m, 31 January 2006). Behr India is establishing a plant at Pune for the production of engine cooling systems like viscous coupling, condensers, radiators and charge air coolers. In 2004, Arvin Exhausts India commenced production at its Bangalore facility to cater to the requirements of Toyota Kirloskar Motors. Contracts In November 2005, Gabriel India won a contract to supply engine bearings to Suzuki Motorcycle India Pvt. Ltd. The company also supplies to the Toyota Innova, Chevrolet Tavera and Tata Ace programs. Haldex India supplies automatic brake adjusters to Ashok Leyland, Eicher Motors and Tata Motors. Behr India has been awarded supply contracts for the Renault Logan. The company has also been selected for supplies to the GM Chevrolet Aveo model. Arvin Exhaust India is the single source supplier for the supply of muffler boxes to Arvin Meritor, UK for the new Land Rover. The company initially supplied 30,000 units which will eventually be scaled up to 50,000 units. Arvin Exhaust India also supplies 0.2m half pressings per annum to Arvin Meritor, UK. Arvin Exhaust India also supplies half pressings to Arvin Meritor, China. Arvin Exhaust India supplies exhaust systems to Toyota Kirloskar Motors. The company is also engaged in the production of door side impact beams and instrument panel reinforcement tubes for Toyota Kirloskar Motors. The company also supplies exhaust systems to Ford India. Perfect Circle supplies to PSA, Europe via Dana's supply network. Spicer India exports companion flanges, differential cases, end yokes to Dana UK and USA. Victor Gaskets supplies gaskets to Ashok Leyland for the Hino Engine program. Spicer is the sole supplier of axles and drive shafts for the Tata Safari, Sumo and 207 series vehicles. Spicer is the sole supplier of axles and driveshafts for the Ford Endeavour model. Spicer has an exclusive contract for axles and drive shafts for GM Tavera. Spicer meets 60% requirements of Ashok Leyland for drive shaft requirements. Spicer is the sole supplier of drive shafts and axles to ICML Rhino program. Spicer is the sole supplier of drive shafts and axles to Hindustan Motors RTV program. 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. Arvin Exhaust supplies front assembly to the Ford Fiesta program. Mahle Filter Systems supplies to all models of Maruti stable. Mahle is the sole supplier of air filters to the Tata Indica program. The company also supplies 45% requirement of filters for trucks in the Tata stable. Mahle is the sole supplier of oil, fuel and air filters to the Hyundai Santro program. Mahle is the sole supplier of filter systems to Hindustan Motors. The company is also the sole supplier to Fiat India. 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. Mando supplies master booster to the Ford Fiesta program in India. Mando also supplies front brake assembly for the Hyundai Accent program. Mando supplies the front brake assembly, rear brake assembly and master booster for the Hyundai Santro program.
86
Infrastructure Perfect Circle has an in-house product validation centre comprising of dynamometers covering engine speed range up to 150 HP. Additionally, the company has an R&D facility and a standards room, metallurgical laboratory and provision for deep thermal shock testing. Perfect Circle has installed a Dimaco Cam-turning boring machine with a fully automated CNC profile grinder and a battery of computerized grinding machines. Chang Yun India has installed two high precision forging presses, 15 CNC turning centres, a liquid honing machine, a multicone lapping machine at its Gurgaon facility. Certifications Mahle Filter System operated facilities are accredited with ISO/ TS 16949, ISO 14001,ISO 18001 and QS 9000. Perfect Circle is accredited with TS 16949, ISO 14001 and OHSAS certified. Arvin Exhaust India Ltd has been accredited with ISO 14001 and TS 16949 status. Valeo Friction Materials India is accredited with ISO/TS 16949, ISO 14001 and OHSAS 18001 status. All Spicer India facilities are ISO/QS/TS 16949, ISO 14001 and OHSAS 18001 certified. Victor Gaskets India has been accredited with TS 16949 & ISO 9001:2000 status. Mando Brake Systems has been accredited with ISO 14000 and TS 16949 status. Henkel Teroson is a TS 16949 certified company. Arvin Exhausts India is an TS 16949 and ISO 14001 company.
Financial Overview
Anand groups sales for the financial year ended 31st March 2008 are estimated at US$634m (401.52m, 31 March 2008) growing 15% over previous years sales of US$550m (412.49m, 31 March 2007). Anand Group, a privately held concern does not publish its detailed financial results.
Outlook
Anand group plans to reach sales of US$1.3bn by 2010 and targets to increase revenue from exports from existing 17% to 20%-25%. The company expects to grow at 20%-25% CAGR in most of its businesses. 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. In order to overcome the increasing raw material costs, Anand group is planning to restructure its manufacturing. This would include divestment of few non-core businesses in order to focus more on design, assembly and manufacturing of critical parts.
87
Apollo Tyres
Tires
Address
Apollo Tyres Ltd Apollo House 7 Institutional Area Sector-32, Gurgaon Haryana- 122 001 India
Tel: + 91 124 2383 002 - 018 Fax: + 91 44 2625 7121 Internet: http://www.apollotyres.com Senior Officers
Onkar S Kanwar, CMD Neeraj Kanwar, COO US Oberoi, Chief, Projects & Corporate Affairs Satish Sharma, Chief, Marketing Sunam Sarkar, Chief Strategy & Business Operations Salil Gupta, CFO
Apollo Tyres is the worlds seventeenth largest and Indias second largest tire manufacturer. The company enjoys market leadership in the Heavy Commercial Vehicle (HCV), Light Commercial Vehicle (LCV), truck and bus segments. It is also a dominant player in the passenger car segment and farm tire market. Apollo Tyres accounts for 18% of tire exports from India and is the third largest supplier to Africa with dominance in Egypt, Kenya and Tanzania.
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, USA. In 1987, General Tire was acquired by Continental and subsequently Apollo Tyre strengthened its technical joint-venture with the German company. In 1988 Apollo Tyres invested in its second plant based in Limda (Gujarat, India). The company began supplies of radial tyres to Maruti Udyog in 1989 and also of premium truck tires the same year. With economic liberalisation in the country, Apollo Tyres started exports of tires for light commercial vehicles and farm equipment. The company strengthened its focus on radial tires in 1994 and in 1995, the third plant was set up in Ranjangaon (Maharashtra, India) for the production of tubes and flaps. Currently, the Limda facility caters to the passenger car market. Apollo's real strength is in the tire/bus segment where it accounts for a 23% share in the replacement market. Truck, bus tyres account for more than 53% in sales in volumes and 78% in revenues of Apollo Tyres. The company's production mix comprises of truck and bus tires (60%), passenger car tires (9%) and others (31%). In the domestic farm tractor tire market, Apollo Tyres enjoys a 23% market share. Apollo owns more than 70% of its dealership network which help the company control retail sales. The company has a network of 7,000 dealerships, half of which are branded Apollo Tyre World.
Products
Tires
Plants
India: Gujarat, Kerala (2) South Africa (2), Zimbabwe (2)
Sales
INR46.91bn (741.22m, 31 March 2008)
Recent Developments
Corporate strategy In recent years, Apollo Tyres has strengthened its presence in the passenger car tire market by adopting several strategies. 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. The company generates 78% of its revenues from commercial vehicle market while the rest is accounted for by passenger car market. In 2007, Apollo identified retreaded tyres as a critically untapped market segment. In India, this segment has largely been dominated by fragmented players across the country. Apollos retreading initiative DuraTyre is the first initiative by a major tire manufacturer in this domain. The company expects annual sales of INR5bn from this segment by 2010 with an initial daily retreading capacity of 12,000 units. In 2008, Apollo enjoyed a 15% share of the tubeless tyre market in India. The company has launched its Acelere Sportz range of tyres to increase its share to 20% by 2010. Acquisitions In February 2006, Apollo Tyres acquired Dunlop Tyres International (South Africa and Zimbabwe) in an all cash deal worth INR2.9bn (55.14m, 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, industrial, farm, light truck, off road, mining, passenger
Employees
c. 5,700 (2008)
88
cars. Dunlop exports to Europe, Central Asia, Australia and South America and has contract manufacturing tie-ups with major international players. Dunlop is also the sole distributor of Cooper Tyres in South Africa with a network of 230 dealers. The deal also gave Apollo Tyres a substantial shareholding in National Tyre Services (NTS), Zimbabwe, that has distribution and re-treading operations. Dunlop International's Zimbabwe subsidiary was shut down in March 2006, due to the foreign exchange crisis. The subsidiary, which had 75% market share, was heavily dependent on imported raw materials which foreign exchange crisis rendered unfeasible to import. In 1995, Apollo Tyres had acquired the sick tire unit -Premier Tyres with a facility in Kerala (India).
Divestment In February 2006, Apollo Tyres offloaded 25% stake in Premier Tyres, from a holding of 71%. In December 2005, Apollo Tyres decided to hive-off its tubes division. In 1998, Apollo Tyres diluted its holding in Apollo Finance and Apollo International. Joint-ventures In 2003, Apollo entered into an alliance with Michelin, forming Michelin Apollo Tyre Pvt Ltd for the production of dual-branded truck and bus radial tires in India. The two players pledged an investment of US$ 75m in a ratio of 51:49. Under the terms of the agreement, Michelin had agreed to provide technical assistance to Apollo Tyres for its passenger car radial program. The JV began with imports of radial tyres sourced from a Michelin plant in China. The deal also included a marketing of Michelin's passenger car tires through Apollos dealerships. However in September 2005 Apollo exited the JV by selling its equity to Michelin. A slower than expected rate of switch to radial tyres in commercial vehicles was cited as the reason for the exit. Investments In February 2008, Apollo Tyres commissioned its INR1bn expansion at Limda, Gujarat to increase passenger car and light truck radial tire capacity to 0.3 million units per month and 0.5 million units per month respectively. In January 2008, Apollo Tyres announced its plans to establish a technology centre at Gyongyos, Hungary. However the company withdrew its proposal citing clearance delays. In 2007, Apollo Tyres announced the construction of a greenfield tire manufacturing unit at Chennai. Apollo Tyres plans to increase its farm tire output from 20,000 units to 25,000 units per month.

To strengthen its R&D capabilities, 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, durability of tires and cost optimisation of existing products. In 2005, Apollo Tyres incurred R&D expenditure which amounted to 0.28% of the sales. Apollo Tyres has developed the Acelere range which is the first full range of H-rated tubeless passenger radial tires in India. The company plans to market these tires in the domestic and the export markets. In 2004, Apollo launched its premium Hawkz tires for the SUV market.
Financial Overview
In the financial year ended 31 March 2008, Apollo Tyres recorded a 1.9% decrease in sales to INR46.91bn (741.22m, 31 March 2008) as compared to INR47.81bn (825.72m, 31 March 2007) in the previous financial year. Operating profit increased by 12.86% to INR4.63bn (73.08m, 31 March 2008) from INR4.09bn (70.77m, 31 March 2007) in 2007. The net profit increased by 130.38% to INR2.7bn (42.61m, 31 March 2008) as compared to INR1.17bn (20.22m, 31 March 2007) in 2007. Year Gross sales, Operating Profit, Profit Before Net Profit,
89
2008 2007 2006 2005 2004
INRbn 46,912.36 47,812.15 30,021.20 26,568.10 23,143.00
INR bn 4,625.00 4,098.11 2,239.20 1,846.40 1,675.80
Tax, INRbn 4,052.72 1,963.49 1,005.70 849.10 1,052.30
INRm 2,696.89 1,170.64 781.70 676.30 704.20
Year 2008 2007 2006 2005 2004
Gross sales, m 741.22 825.72 558.99 470.26 432.31
Operating Profit, m 73.08 70.77 41.69 32.68 31.30
Profit Before Tax, m 64.03 33.91 18.73 15.03 19.66
Net Profit, m 42.61 20.22 14.56 11.97 13.15
Outlook
With the acquisition of Dunlop in South Africa, Apollo Tyres acquired a significant manufacturing and marketing footprint and a market access point to the African continent. But the adverse economic conditions in Zimbabwe is unlikely to improve hence its business in the country is not expected to improve. In the domestic market, Apollo has realised the growth potential of the passenger car segment and an opportunity in the retreading market. Apollo is increasing its production capacity of car tires by setting up a greenfield unit in Chennai. Additionally, Apollo Tyres is the first for major tire manufacturer to enter the fragmented retreading market for commercial vehicle tires in India, giving the company a first movers advantage.
90
Asahi India Glass

Automotive safety glass
Address
Asahi India Glass Ltd, Global Business Park, Tower-B, 5th Floor, Mehrauli Gurgaon Road, Gurgaon 122 002
Asahi India glass is India's largest manufacturer of automotive safety glass. With an 86% market share, Asahi India supplies to all major vehicle manufacturers in the country. The automotive segment accounted for 52% of Asahi India's sales in 2007.
Asahi India Glass was incorporated as Indian Auto Safety Glass Ltd in 1983 for the manufacture of toughened glass for solar panels and televisions. Today it is a threeway joint-venture between Maruti Udyog (11.11%), Asahi Industries (Japan) (22.21%) and BM Labroo & Associates (22.21%). The company underwent major capacity expansions for automotive glass through the nineties, as sales of Maruti grew and as its product range increased. In 1993, Asahi began supplying to new customers to partly reduce it dependence on Maruti. It was roughly the same time when Asahi made its first export. Besides automotive business, Asahi India has interests in architectural glass business through a separate entity called Asahi Glass Solutions. Asahi India's flagship facility in Rewari (Haryana) has an installed capacity of 500,000 windshields and 400,000 tempered sidelights per annum and the newlybuilt Chennai (Tamil Nadu) facility has a capacity of 1.2 million sidelights per annum. The plants can be further upgraded to produce 1.5 million laminated windshields and 500,000 tempered glass sets annually. Asahi India enjoys wide customer base which includes Eicher, Fiat India, Ford India, GM India, Honda Siel, Hyundai India, Hindustan Motors, Mahindra & Mahindra, Maruti, Reva Electric Car Company, Swaraj Mazda, Tata Motors, Toyota Kirloskar and Volvo India. 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%). The company accounts for 13% of its sales as replacement glass sold to OEMs and in the aftermarket. Maruti, Ford India and Hyundai India (until recently) source glazing from Asahi India as a single-source vendor. Nearly 5% of the production is used to meet export demands. Aftermarket business contributes 16% of company's automotive sales.
Tel: 91 124 5062212-19 Fax: 91 124 5062244/88 Internet: http://www.asahiindia.com Senior Officers
BM Labroo, Chairman Sanjay Labroo, Managing Director and CEO Arvind Singh, Director and COO (Automotive)
Products
Laminated windshields, tempered glasses, defogger glasses, encapsulated glasses and sub-assembled glasses.
Plants
Automotive: Chennai (1), Haryana (1)
Sales
Group: INR9.96bn (160.20m, 31 March 2008) (Year to 31.12.08) Automotive: INR5.7bn (90.02m, 31 March 2007) (Year to 31.12.08)
Employees
c. 700 (31.03.08)
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. 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. 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. The company expects to double its direct glass exports by 2010. Asahi India has also emerged as the lowest cost producer of safety glass in the Asahi network spanning 35 countries worldwide. Acquisitions In 2003, Asahi India glass was merged with Floatglass India. The merged entity of Floatglass India was then converted into the float glass division. Joint-ventures Asahi India has a technical and financial tie up with Asahi industries, Japan.
91
Investments In January 2007, Asahi India Glass commissioned its single largest integrated glass plant in Roorkee, Uttaranchal (India) at a cost of INR6bn (100.71m, 31 December 2004). The facility has an installed capacity of 700 tons per day for float glass, reflective glass, mirror, automotive safety glass and architectural processed glass. The automotive safety glass unit is scheduled for commissioning in the last quarter of 2007. In 2005, Asahi decided to add 10 acres of land to its flagship facility in Rewari. In February 2005, Asahi India Glass commissioned its second automotive glass unit in Chennai (India) with an initial capacity of 500,000 laminated windshields. Further capacity expansions are expected to take the plant capacity up to 1.5 million laminated windshields and one million tempered car sets. The new plant shall cater to Hyundai, Ford, Toyota, GM, HM and Volvo. The new plant is also used as an export hub. The entire setup was established at a cost of INR500m(8.66m, 28 February 2005), further investments are expected with expansions. In 2005, Asahi India made a capacity expansion at its Rewari plant catering to the automotive tempered glass market. In 2001, Asahi installed CNC drilling machines, CAD station and in-house design cum manufacturing facilities for certain key processes. Also in 2001, Asahi installed a new laminated bending facility for the production of complex laminated windshields. Contracts Asahi supports its South India and exports demand through its newly built Chennai plant along with the flagship facility in Gurgaon. In 2007, Asahi India commenced supplies to Maruti Suzuki Zen Estilo program. In 2007, Asahi India commenced supplies to Maruti Suzuki SX 4 program. In 2007, Asahi India commenced supplies to General Motors Aveo-UVA program. In 2007, Asahi India commenced supplies to Hyundai Verna program. In 2007, Asahi India commenced supplies to Honda Civic program. In 2005, Asahi India bagged a supply contract worth US$5m through Asahis global network. In 2005, Asahi started supplying automotive glass to Maruti Udyog for the Swift. Maruti accounts for nearly a third of Asahis sales. Asahi is the sole vendor to Maruti. Asahi India supplies to the following programs: Ford Ikon, Fiesta, Endeavour Hyundai i10 GM Chevrolet Optra. Honda Accord and Honda City Hyundai Santro Xing Mahindra Bolero Invader Maruti Zen Estilo, Alto, Swift, Swift Dzire, SX4 and A-Star. Piaggio Ape New Product Developments In 2007, Asahi India developed solar control glass for an OE customer. Also in 2007, Asahi developed reflective (PET) windshield for overseas markets. Also in 2007, Asahi developed glass for Swaraj Mazda Isuzu bus project.
Financial Overview In the financial year ended 31 March 2008, Asahi India
Glass reported 12.8% increase in consolidated sales to INR9.96bn (160.20m, 31 March 2008) as compared to INR8.38bn (152.50m, 31 March 2007), in 2007. The company's pre-tax profit decreased by 78.44% to INR140.4m (2.22m, 31 March 2008) as against INR651.5m (11.25m, 31 March 2007) in previous financial year. Net profit also increased by 82.03% in 2008 to INR77.40m (1.22m, 31 March 2008) as against INR430.8m (7.44m, 31 March 2007) in 2007. The company faced a strong increase in input prices due to supply constraints and aggressive
92
speculation in input commodities. In the Automotive Glass division, sales increased by 12.3% to INR5.7bn (90.06m, 31 March 2008) as compared to INR5.01bn (88.08m, 31 March 2007) in previous financial year.
Year
Gross sales, INR bn

9.96 8.83 6.83 6.76 5.66
Operating profit, INR bn

0.99 1.66 1.21 1.29 1.31
Profit before tax, INR m

140.40 651.5 1038.7 852.62 782.27
Net Profit, INR m

77.40 430.8 862.65 782.01 717.49
2008 2007 2006 2005 2004
Year
Gross sales, m
160.20 152.50 127.14 119.69 105.73
Operating profit, m
0.02 28.69 22.52 22.84 24.47
Profit before tax, m

2.22 11.25 19.34 15.10 14.61
Net Profit, m
1.22 7.44 16.06 13.85 13.40
2008 2007 2006 2005 2004
Outlook Automobile production in India is expected to double in six years, which

places Asahi India in a comfortable position in the long term as there is no major competition in the country at the moment. The company will soon realise logistical and operational benefits from its three plants spread across three automotive clusters in India. At the moment, Asahi India faces high cost pressures which have reduced its profit margins drastically on the float glass side of business.
93
Ashok Iron Works

Brake drums, fly wheel housings and wheel hubs
Address
Ashok Iron Works Pvt Ltd, Majgaon Road, Uyambag, Belgaum 590008 Karnataka India
Ashok Iron Works is supplier of brake drums, crank cases and crank shafts, cylinder blocks and cylinder heads and housings.
Ashok Iron Works was set up in 1974 in Belgaum (Karnataka). Ashok Iron Works has two manufacturing plants in Belgaum (Karnataka, India) and employs 1,100 people. The company supplies to domestic as well as international customers. In the domestic market, main customers of the company include Ashok Leyland, Bharat Earth Movers, Cummins India, Eicher Tractors, Escort, Mahindra & Mahindra, Same Deutz and Tata Motors. In the overseas market, the company supplies to Bitzer, Deutz and Lister Petter.
Tel: +91 831 2442 599 Fax: +91 831 2441 899 Internet: http:// www.ashokiron.com Senior Officers Ashok Humberwadi, Chairman
V S Katkar, CEO, Director &Vice President K Dhayalan, Senior Manager, Marketing Gurunath Tendulkar Manager, Export C Radhakrishnan, Manager, Foundry Jayraman, General Manager Quality R D Ganesan, Manager, Development
Recent Developments
Corporate Strategy Ashok Iron Works is expanding its production capacity and is setting up a new manufacturing plant. Over the last few years, the company has increased its focus on exports which now account for approximately 10% of total sales of the company. Investment Ashok Iron Works is setting up a new manufacturing facility for forging. The plant would manufacture components for auto and diesel engine parts. In the first phase, the melting capacity of the new plant would be 100 tonnes per day which would further be increased to 200 tonnes per day. Certificates Ashok Iron Works plant has been certified with ISO 9000 status.
Products
Brake drums, casings, crankcases, crankshafts, cylinder blocks, cylinder heads, flywheels, gearbox housings
Plants
Karnataka (2)
Financial Overview In the financial year ended 31 March 2005, Ashok Iron Works
estimated sales were US$38.5m, (29.8m, 31 March 2005). In the same period, the companys exports was US$3.6m (2.8m, 31 December 2005). The company is a private limited company and is under no obligation to publish its financial details.
Sales
c. US$38.5m (29.8m, 31 March 2005) (Year to 31.03.05)
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. 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.
Employees
1,100 (2005)
94
Ashok Minda Group

Driver information & security systems and Wiring harness
Address
Minda Huf Limited, D-6-11, Sector-59, Noida- 201301 Uttar Pradesh India
The Ashok Minda Group is a leader in its segment and enjoys major market share in some of its products. The group manufactures security systems, wiring harnesses, couplers, terminals and instrument clusters for almost all major two and four wheeler vehicles manufactured in India.
Minda Huf Ltd, a joint-venture with Huf Hulsbeck und Furst GmbH of Germany, is the flagship company of the Ashok Minda group which started commercial production of two-wheeler locks in 1989, followed by four-wheeler locksets in 1994. The Ashok Minda Group is structured into the following companies: Minda SAI: Initially established in 1995, as Sylea Automotive (India) Ltd., a subsidiary of Valeo, the company was acquired in April 2003 with the aim of diversifying into the wiring harness business. The company also derives some revenue from non-automotive white goods businesses. It operates five plants India-wide. Wiring harnesses account for 80% of sales, while wire sets account for 15% of sales. The concluding 5% is generated by components. Minda Stoneridge: Earlier known as the Minda Instruments, is a leading supplier of mechanical instrument clusters. The company has grown at a rate of 80% in the last three years. Minda Huf Ltd: Is a leading supplier of locking systems in India and the Groups flagship company. Minda Huf Europe BV: Is a European subsidiary supplying security systems, door handles, castings and moldings in Europe. Mayank Auto Pvt. Ltd: Is a manufacturer of sub-assemblies. SM Technocast Pvt. Ltd: Produces die-castings. PT Minda ASEAN Automotive: is a new company set up in Indonesia to serve two wheeler manufacturers in the ASEAN region.
Tel: +91 120 2580 249/ 250/ 252 Fax: +91 120 2580 247 Internet: http://www.minda.co.in Address
Minda SAI Limited, B- 20& 21, Hoisery Complex Phase II Extension Noida- 201305 Uttar Pradesh India
Tel: +91 120 2567 664/ 665 Fax: +91 120 2567 326 Internet: http://www.minda.co.in Senior Officers
U Hulsbeck, Chairman, Minda Huf Ashok Minda, Managing Director, Minda Huf MK Pajan, President, Minda Huf NK Taneja, Managing Director, Minda SAI
Products
Minda SAI: Connectors, couplers, crimps, terminals, wiring harness, wiring sets Minda Huf: Alarms, door handles, fuel tank locks, glove box locks/ latches, immobiliser systems, lock sets, locking/ latching systems, remote control systems, remote operated immobilisers, steering column lock and modules, trunk locks/ latches Minda Stoneridge: Speedometers, odometers, fuel gauge, temperature gauge, sensors, indicators. SM Technocast: Zinc die casted components
The group has a wide base of clients comprising domestic OEMs such as Ashok Leyland, Eicher Motors, Escorts Tractors, Fiat Auto, Hero Motors, Hindustan Motors, Honda Motor Cycle & Scooter India, Indo Farm Tractors, International Tractors, Kinetic Engineering, Kinetic Motor Company, Mahindra & Mahindra, Monto Motors, New Holland, Piaggio Vehicles, Reva Electric Car Company, Same Greaves Tractors, TVS Motors, VST Tillers & Tract and Yamaha Motor India. Mindas tier-1 customers include domestic clients like Denso, L & T Case Equipments, LML (Components), Mindarika, Nippon Audiotronix, Sandan Vikas, Siemens VDO, Subros, Sundaram Motors. Companys international clients include Creo Products, Harteveld Automaterialen BV, Lotus Cars, Piaggio, Peugeot, Aprillia, Supra Industries and Triumph among others. The company also serves the aftermarket.
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. Company has set high export targets for itself with a greater composition in group sales.
95
Plants
Minda SAI: Tamil Nadu, Daman & Diu, Maharashtra, Madhya Pradesh Uttar Pradesh Minda Huf: Uttar Pradesh, Maharashtra (2) Minda Stoneridge: Maharashtra Minda SM Technocast: Uttar Pradesh
Domestically, the company is growing well. To further its growth Ashok Minda Group has aggressively diversified its product range by acquiring Valeos wiring harness subsidiary in India and then by forming a joint-venture with Stoneridge for instrument clusters. Acquisitions In June 2008, the Ashok Minda Group acquired interior component supplier Schenk Plastic Solutions in Germany. 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. Schenk has annual sales of 75m with 500 employees. The company has a patented skinform technology which produces high-value interior surfaces at a lower cost than previously possible, claims the manufacturer. Schenk is a major supplier to Daimler with the carmaker accounting for 60% of the suppliers sales. In 2003, the company acquired Valeos wiring harness arm, Sylea Automotive (India). In accordance to the agreement made between the two companies, Valeo continues to provide technical know how to Minda. In principle, Valeo also agreed to source some of its requirements from the company. Joint-ventures In August 2007,the A K Minda Group announced a joint venture with The Furukawa Electric Co Ltd., and Furukawa Automotive Parts Inc., Japan (Furukawa Group). The joint venture will be a 51: 49 partnership and the new company has been named as Minda Furukawa Electric Pvt. Ltd. (MFEP). In May 2007, the A K Minda Group entered into a 50:50 joint venture with the security systems branch of Valeo. The joint-venture plant will be located at Pune near Mumbai and will develop, produce and sell the entire range of Valeo Security Systems products including locksets, steering column locks, latches, strikers, handles, engine immobilizers, remote keyless entry systems, passive entry, start systems and power closure systems. In December 2006, the A K Minda group entered into a joint venture with Silca, the worlds largest manufacturer of keys, to produce and market keys and key duplicating machines for the Indian and international markets. The new company was named as Minda Silca Engineering Ltd. Both partners hold 50% share each in the new company with a plan to invest INR500m (8.59m, 31 December 2006) over the next three years. PT Minda ASEAN is a joint-venture between the Ashok Minda Group and the NK Minda Group with a manufacturing presence in Indonesia. The Indonesia based facility commenced production in end 2005. In August 2004, Stoneridge Inc. (USA), bought a 49% stake in Minda Instruments over a period of three years. Minda Stoneridge, the rechristened entity, received exclusive manufacturing and marketing rights for India and 17 Asian countries, namely- Malaysia, Indonesia, Philippines, Singapore, Thailand, Vietnam, Pakistan, Bangladesh, Brunei, Burma, Cambodia, Laos, Mauritius, Maldives, Nepal and Sri Lanka. The joint-venture is expected to achieve a turnover of US$20m by 2007-08. Moreover the company has an arrangement for buy-back with Stoneridge. The company is also chalking out plans to add other product lines of Stoneridge Inc. including sensors; actuators etc., which will also be introduced into the joint-venture. Investments In January 2005, Minda Huf Ltd. established a European subsidiary, Minda Huf Europe BV with operations in Breda (Netherlands). The new company acts as a logistics facility to existing European clients for just-in-time deliveries. At the same time the company is targeting new clients. The company supplies mechanical and electronic security systems, door handles, castings and mouldings. Minda Huf intends to derive 20m in sales from the new venture by 2007-08. Further, through the new set up, Minda Huf is targeting new segments like commercial vehicles, recreational vehicles, tractors, earth movers and construction equipments in the European market. In February 2004, Minda Huf announced the setting up of a new facility in Pune. The new facility caters to the growing requirements of Minda Hufs clients in Indias western region. The total capital investment on the new facility was INR250m (4.43m, 28 February 2004).
Sales
c INR11.0bn
Employees
3500 (November 2008)
96
Contracts MHL is the sole supplier to the Ford Ikon. MHL is the single source supplier for the Opel Corsa. MHL is the single source supplier for the Tata Indica and Safari. MHL is the single source supplier for the Fiat Siena and the Palio. 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. MHL is the single source supplier to Force Motors for the Trax and the Traveller. MHL has a 40% share of business of Maruti Omni and the 800. In December 2003, MHL commenced production of Indilock, an advanced central car locking security system, for supplies to Tata Motors. MHL supplies locksets to DaimlerChrysler (Germany). The company supplies transponder immobiliser locksets to Ford in Mexico and South Africa. MHL supplies locksets and electronic security systems for two-wheeler and four-wheeler applications to Piaggio (Italy). MHL supplies locksets to Aprillia, Italy; Peugeot, France; Yamaha-MBK, France; Yamaha, Spain; Derby, Spain; Suzuki, Spain; Yamaha, Indonesia; and Suzuki, Thailand for two-wheeler applications. MHL supplies locksets to Cobo (Italy) for LCVs. MHL has the contract to supply locksets to Triumph (UK). Minda Stoneridge is the single source supplier to Tata Motors for the Sumo and the LCV- 407/709. Minda Stoneridge has been chosen as the single global source supplier for the Piaggio NQP World Van. Minda Stoneridge is the single source supplier to Mahindra & Mahindra for the regular tractor. Minda Stoneridge is the single source supplier to Escorts for Farm Trac and Power Trac.
New Product Developments During the financial year 2005, Minda Huf incurred R&D expenditure amounting to 1.46% of its total sales. In December 2003, Minda Huf Ltd. introduced the Indilock, developed for Tata Motors. Indilock contains features like waterproof remote control; separate locking for driver door, manual central locking and unlocking and code hopping technology. The lock also contains Plug n Play wiring harness. The system comes with a panic alarm system and theft attempt detection, which checks unwarranted access into the car. Further the system has a secret code for emergency; in case the user looses the remote, the engine immobiliser can be deactivated and the car can be started even without the remote. Financial Overview Most of the units of the Ashok Minda group are privatelyheld and financials are not disclosed. The group indicated that it was targeting a turnover of INR11bn (170m, 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, production base, among others. However, the group has to bear in mind to raise technological levels in some of its products.
97
Auto Ignition
Alternators, Ignition coils, starter motors
Address
Auto Ignition Ltd. Plot No. 1, 19/6, Mathura Road, Faridabad -121 006, Haryana, India
Auto Ignition is supplier of alternators, ignition coils, starter motors and voltage regulators to the domestic automotive sector and to overseas aftermarket. The company started its operation in 1972.
Auto Ignition supplies mostly to tractor and commercial engine manufacturers in India. The diverse customer base of the company includes Eicher Tractors, Escorts, Force Motors, HMT, Lombardini, Mahindra & Mahindra, Maruti Udyog, Preet Tractors, Punjab Tractors, Sonalika Tractors, Standard Tractors, Tractors & Farm Equipment, Tata Motors, Tatra Trucks. The company also supplies to Prestolite of the UK. In addition, the company manufactures aftermarket replacement components catering for parts manufactured by leading suppliers such as Bosch, Delco Remy, Lucas, Magneti Marelli, and Nippon Denso. Auto Ignition is also one of the leading exporters of auto electrical parts from India. The company exports its products to Australia, Europe, Middle East, North and South America and South Africa. In 2008, exports accounted for 40% of total sales of the company.
Tel: +91 129 4003 291 Fax: +91 129 4003 293 Internet: http:// www. autolek.com Senior Officers
L V Buran, President & CEO R K Sarine, Managing Director Sanjeev Rahi, Vice President, Sales Satish Kapoor, Senior Manager, Export D Dey, Vice President, R&D S N Chakraborty, Vice President, Quality Assurance B K Gupta, Vice President
Recent Developments
Corporate strategy In recent years, Auto Ignition has been intensifying exports with about 40% of companys sales derived from overseas. The company has a diverse product range in the electrical area. The company plans to continue its focus on exports to the aftermarket where profit margins are better. 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.
Products
Alternators, armatures, drives, dynamos, generators, ignition coils, solenoid, starter motors, voltage regulators
Plants
Faridabad, (Haryana, India)
Sales
INR 1.6bn (25.4m, 31 March 2008) (Year to 31.03.08)
Financial Overview
In the financial year ended 31 March 2008, Auto Ignition's estimated sales were INR 1.6bn (25.4m, 31 March 2008), declining marginally from INR1.67bn (28.8m, 31 March 2007) in 2007. In 2008, exports formed 40% of the companys total sales.
Employees
c. 625 (31 March 2008)
Outlook
Auto Ignition has identified its niche in the global aftermarket for electrical components. The company has good presence worldwide with leading suppliers as customers. Going forward, companys export will continue to constitute the major portion of its business.
98
Autoliv IFB
Automotive safety system
Address
Autoliv IFB India Pvt Ltd, No. 16 Visveshwariah Industrial Estate, 1st Main Roda, Off White Field Road, Mahadeva Pura, Bangalore 560 048, Karnataka India
Since October 2007, Autoliv IFB has been a fully owned subsidiary of Autoliv. The company is the market leader in automotive safety systems in the country with around 50% market share. The company manufactures airbags, buckles, child-restraint system and seat belts.
Autoliv IFB India was a joint-venture between IFB Automotive Seating System and Autoliv AB of Sweden. The company started its operation in 1994. Autoliv IFB India operates two plants and employs 340 people. In October 2007 Autoliv acquired IFBs 50.01% stake in the company, effectively making it a fully owned subsidiary and renaming the company as Autoliv India. Autoliv India has a wide customer base in India and meets half of the requirements of the industry. Its customers include Ashok Leyland, DaimlerChrysler, Eicher Motors, Escorts JCB, Force Motors, Ford India, General Motors India, Hindustan Motors, Hanil Lear India, Hyundai Motor India, Mahindra & Mahindra, Maruti Udyog, Peugeot, Tata Johnson Controls, Tata Motors, Toyota Kirloskar Motors and Volvo India. The company also supplies to Autoliv in China
Tel: +91 80 2852 4017 Fax: +91 80 2852 4185 Internet: http://www.autolivifbindia.com Senior Officers
V Raghu, President & CEO
Products
Airbags, belt retractors, buckles, child restraint systems, load limiters, seat belts, shoulder height adjusters
Recent Developments
Corporate strategy Autoliv India gets constant access to latest technology for occupant safety systems from global leader Autoliv. This has helped the company in obtaining half the share of the domestic market. 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. The company has stated that it is working on developing a very low cost airbag system for the Tata Nano. Currently, the exports of the company are below 1% of its sales but it is working on increasing its overseas earnings. Joint-ventures Autoliv India has technical and financial collaboration with Autoliv AB of Sweden. Infrastructure Autoliv India has a design facility which is equipped with facilities for 3D Modeling, Math modeling and Analysis. The company uses software including Catia, Solid Works for 3D Modeling & Mould Flow & Finite Element Analysis in designing. Autoliv Indias designing facility also carries out simulation work in occupant safety areas using multi-body dynamics software. Autoliv Indias test laboratory has the facility to carry out simulated Sled Tests using a Calibrated Test Dummy. The test centre also carries out Durability Tests and Reliability Studies for seat belts and buckle systems. Autoliv Indias test center is capable of carrying out body in white tests for automotive manufacturers. Certificates Autoliv India has been certified ISO/TS 16949 Quality Management System by TUV-Suddeutschland.
Plants
Karnataka, West Bengal
Sales
US$27.2m (19.99m, 31 December 2004) (Year to 31.12.04)
Employees
340 (2005)
Financial Overview In financial year 2004, Autoliv India sales were estimated at
US$27.2m (19.99m, 31 December 2004). The company also reported export sales of US$0.23m (0.17m, 31 December 2005) during the period. Being privately held, the company does not disclose detailed financials.
99
Outlook Automotive safety is an increasing concern worldwide and the Indian

automobile industry is not insulated from the issue. In the future, safety systems content per vehicle is likely to increase. With a broad product profile in safety systems and a 50% market share in the domestic market, Autoliv IFB India, 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.
100
Automotive Stampings & Assemblies Limited

Sheet metal components
Address
Automotive Stampings & Assemblies Limited, G- 71/2, MIDC Industrial Area, Pune 411 026, Maharashtra, India
Automotive Stampings & Assemblies Limited (ASAL) is a subsidiary of Tata AutoComp Systems Group. ASAL manufactures sheet metal components such as skin panels and body in white parts.
The company was incorporated as JBM Tools in 1990, as a developer of tools, dies and moulds for automotive OEMs and others. 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, USA. Subsequently, the company added a second unit in Pune. Having diversified its operations, JBM Tools adopted a new identity in 2003 and was renamed Automotive Stampings & Assemblies Limited. In 2000, Tata Autocomp Systems Limited (TACO) bought 48.8% of the share capital of the company raising TACO's stake to 81%. ASAL is currently the only listed company in the TACO stable. Recently Gestamp Automocin, Spain has proposed to join ASAL as an equal equity partner along with TACO Group. The company operates two plants in Pune, one each in Bhosari and Chakan and a plant in Halol, Gujrat. ASALs customer list includes Fiat, GM, John Deere, Kinetic Engineering, L&TJohn Deere, Mahindra & Mahindra, Piaggio, Tata Motors and Trelleborg Germany.
Tel: + 91 20 27123725/1099/1500/1677 Fax: +91 20 27123147 Internet: http://www.autostampings.com Senior Officers

DS Gupta, Chairman S Nagaraju, CEO Anshuman Dev, COO Sanjay Arora, Head, Marketing
Products
Outer door skin panels, inner door frames, outer bonnet skin, inner bonnet frame, outer side door frame, tractor fender assembly, CV sector skin panels, three wheeler skin panels and wheel housings.
Recent Developments
Corporate strategy Augmenting product portfolio and expanding into propriety design offerings has been a key focus for ASAL. The entry of Gestamp in this regard will provide ASAL access to intellectual property which would help ASAL fetch better margins. ASAL is adding greater value added products to its portfolio which require a greater degree of engineering skill like chassis. ASAL is working on repositioning itself as a solution provider by associating itself with OEMs at early design stages. ASAL is partnering with OEMs entering the Pune cluster to win business at an early stage from new entrants. This will help ASAL reduce its dependence on Tata Motors which at present accounts for 68% of the companys revenues. ASAL is working towards bringing down Tatas share of its revenue pie to 50% by 2009. Acquisitions Tata Autocomp Systems acquired ASAL in 2003. Investments ASAL has undertaken a capacity expansion program at its Chakan facility, which shall increase its installed capacity by 22%. ASAL is also investing in setting up a new plant at Pant Nagar. Contracts ASAL has a large customer base which includes Tata Motors (Body-in-white parts, assemblies, fuel tanks and oil sumps), Fiat (Skin and body-in-white components),
Plants
Halol (1), Pune (2)
Sales
INR3.01bn (47.80m, 31 March 2008) (Year to 31.03.08)
Employees
c. 590 (Year to 31 March 2008)
101
Piaggio (Body-in-white parts and skin panels), GM India (Body-in-white parts and assemblies), Mahindra & Mahindra (tractor fenders), L&T-John Deere (tractor fenders and consoles), Volvo India (exhaust systems) and Kinetic Engineering as its key customers. Its export clients are John Deere USA (steering yoke assembly) and Trelleborg in Germany (engine mounting brackets). For the Fiat Palio in India, ASAL supplies side panel, rear door panel, front door panel, front mudguard, bonnet - outer and inner. ASAL supplies the front headlamp panel, (body-in-white) door-inner, front tie member, door inner panel and rear inner panel for the TataMobile pick-up. ASAL supplies the face side for Tata trucks and buses. ASAL also supplies the rear quarter glass, panel dash and panel wheel housing for the Tata Safari. ASAL has a supply contract for panel B pillar, longitudinal rear, top shell for fuel tank, rear suspension tower for the Tata Indica. The company supplies front floor assembly, cross member, longitudinal rear, radiator support, fuel tank top shell and rear suspension tower Tata Indigo. The company also supplies fender assembly to Mahindra & Mahindra tractors. ASAL supplies wheel arch for the Tata Sumo. The company supplies cover tail lamp for the Mahindra & Mahindra tractors. The company also supplies support console for L&T John Deere tractor.
Certification ASAL has been accredited to ISO/TS 16949 and ISO 14001 certification. Infrastructure 1500 ton double action press at Bhosari (Pune, Maharashtra, India). 1000 ton double action press at Bhosari (Pune, Maharashtra, India). 600 ton single action press at Bhosari (Pune, Maharashtra, India). 1000 ton hydraulic press at Chakan (Pune, Maharashtra, India). 630 ton single action press at Chakan (Pune, Maharashtra, India). ASAL has a press shop at the Chakan (Pune, Maharashtra, India) and Halol (Gujarat, India). Fuel tank welding at Bhosari (Pune, Maharashtra, India). Seam welding at Bhosari (Pune, Maharashtra, India). Seam welding for oil sumps. Welding facility for oil sumps. Spot welding facility at Chakan (Pune, Maharashtra, India) Welding facility for cross member Leak testing facility at Bhosari (Pune, Maharashtra, India) Powder coating facility at Bhosari (Pune, Maharashtra, India) Shearing facility at Bhosari (Pune, Maharashtra, India) CAD centre at Bhosari (Pune, Maharashtra, India). Tool room at Bhosari (Pune, Maharashtra, India) CAD centre at Chakan (Pune, Maharashtra, India) Trailing arm machining centre CNC pipe bending machine
Financial Overview In the financial year ended 31 March 2008, ASAL registered sales worth INR3.01bn (47.80m, 31 March 2008) in 2008 compared to INR3.69bn (63.74m, 31 March 2007) in 2007, a drop of 18.42%. Profit before tax, interest, depreciation and extraordinary income decreased by 61.02% owing to lower sales. Net Profit decreased by 60.34% to INR42.96m (0.68m, 31 March 2008) in 2008 compared to INR108.31m (1.87m, 31 March 2007) in 2007. Year Gross sales, INR bn
3.01 3.69 3.26 2.92 2.06
Operating profit, INR m

204.97 300.45 188.69 170.23 226.07

65.83 168.91 70.85 65.19 131.70
Net Profit, INR m

42.96 108.31 46.45 40.18 73.20
2008 2007 2006 2005 2004
102
Year
Gross sales, m
47.80 63.74 60.71 51.70 38.48
Operating profit, m
3.25 5.19 3.51 3.01 4.22

1.05 2.92 1.32 1.15 2.46
Net Profit, m
0.68 1.87 0.87 0.71 1.37
2008 2007 2006 2005 2004
Outlook While overall volumes have been growing due to buoyant demand in the
domestic passenger car market, ASAL has had difficulties in maintaining margins due to rising input costs, especially due to commodity hardening. Gestamps 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. The company is also keen on improving its product mix by adding higher value added stampings to its present portfolio. ASAL is dependent on Tata Motors for substantial volume growth and will benefit with new model introductions from Tata.
103
Axles India Limited

Axles
Address
Axles India Limited, 21 Patullos Road, Chennai- 600002, India
Axles India is a leading supplier of axles to the commercial vehicle segment in India. With Dana as its joint-venture partner, Axles India is widening its product range and growing its exports.
Axles India was incorporated in 1983, as a tri-party joint-venture between Sundaram Finance, Wheels India and Eaton Corporation for the production of axles for medium and heavy duty commercial vehicles in India. Subsequent to Danas takeover of Eatons axle business, Dana became the promoter. Production of pressed axle housings commenced in 1983. During the fiscal 2007/08 Axles India produced 145,000 axle housings from its three plants in India. Axle India supplies to Ashok Leyland, Eicher Motors, Mahindra & Mahindra, Swaraj Mazda and Tata Motors.
Tel: + 91 44 2852 2745 Fax: + 91 44 2625 7121 Internet: http://www.axlesindia.com Senior Officers
S Ram, Chairman and Managing Director MK Surendran,Vice President, Operations VR Ravi, General Manager,Finance
Recent Developments
Corporate strategy In recent years, Axles India has acquired competence to become a fully built axles manufacturer. Axles India is working on expanding its product portfolio with the help of Dana. The plan involves introduction of drive heads into the Indian market. Axles India is also exploring export opportunities with Dana and has commissioned a 100% Export Oriented Unit. Further, Axles India is working on plans to offer low cost production services to Dana for its requirement of axles and allied products. Joint-ventures Axles India has technology alliance and equity participation with Dana Corporation (USA). Investments In September 2004, Axles India announced its plan to establish a INR160m (2.8m, 30 September 2004) plant to export axle housings to Dana in the USA. Dana buys approximately 50,000 axle housings from the company annually. In November 2000, Axles India announced a INR52m (1.29m, 30 November 2000) project to establish a facility for manufacturing drive heads. Certifications Axles India is accredited with QS 9000 certification.
Products
Axle housings, axle beams, hub reduction axle housings, drive heads
Plants
India (3)
Sales
INR 9bn (140.00m, 31 December 2007)
Employees
c. 660 (31 March 2008)

Axles India has technology support from Dana Corporation. The company has started supplying Dana's Drive Head-60SH and plans to supply other models of Dana drive heads to its customers.
Financial Overview
In the financial year ended 31 March 2008, Axles India generated sales worth INR1.5bn (23.70m, 31 March 2008). Axles India is not listed for trade on Indian bourses and does not publish its financial statements.
Outlook While Axles India is able to access new product technologies and tap a
worldwide customer base from Dana, 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. Further areas can be explored in the future such as R&D, higher volume of exports of more products.
104
Bagla Group
Automotive electricals, die-castings, fasteners and wheel assemblies
Address
Aurangabad Electricals Gut No. 65, Village Chitegaon Tq. Paithan Aurangabad- 431 005 Maharashtra
Bagla group is a lead supplier of automotive components primarily for OEMs and tier-1 suppliers.
Aurangabad Electricals, the flagship company of Bagla Group was set up in 1986, for manufacturing 'Magneto Assembly' for two and three wheeler. The technology tie up was taken from Shihlin Electric and the unit was set up as an ancillary unit to Bajaj Auto. With Bajaj shipping greater volumes through the late 80s and early 90s, Aurangabad Electricals became the biggest manufacturer of magnetos in India. In the late 90s Aurangabad Electricals diversified into pressure die-castings to serve Bajaj Auto Limited and other OEMs. Though the performance of the setup remained subdued in early years due to relative inexperience and the lack of critical understanding. To meet the vision of Bagla group engineered auto components for global market - the company started both backward and forward integration i.e, die design, manufacturing, surface treatment processes like anodising, chromotizing etc. Today Bagla Group is now leading supplier of fully machined die cast component for automotive industry world wide. Groups business is divided into three companies: Aurangabad Electricals: is the flagship company of the Bagla Group and has four operating segments - Auto electricals, High Pressure Die-Castings (HPDC), wheels and brakes. Aurangabad Motors: has an operation in automotive, Gravity Die-Castings (GDC). The company also supplies condensers for refrigerators. 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.
Tel: +91 2431 251 482-86 Fax: +91 2431 251 488-9 Internet: http://www.baglagroup.com Senior Officers
R N Bagla, Chairman & Managing Director Rishi Bagla, Joint Managing Director Mr K.Raghavachary-Director Technical Ajay Kumar Tannu, President Milind Ajgaonkar, Vice President Marketing
Products
Auto electricals-CDI Units, flasher relays, magnetos, regulators, starter relays Finished aluminium die cast parts-brake drums, brake panel assembly, engine parts, motorcycle wheels, spokes & nipples, steel wheel rims, wheel hubs
Overall Bajaj Auto accounted for 80% of Aurangabad Electricals revenues in 2007. The company has divided its operations into four divisions, Aluminium die casting, Auto Electrical, Fasteners, and wheels and rims. Its electrical division manufactures magnetos, CDI, HT coils and regulators for 2/3 wheelers. The aluminium pressure die casting unit produces aluminium components like brake drums, brake panel assemblies, chain covers, generator covers, cylinder heads etc. Aurangabad Electricals supplies to Bajaj Auto, BEHR India, Delphi, Knorr Bremse, L&T, Lombardini , Lucas TVS, Tata Motors, TACO etc. The company also exports to Behr (Germany), Knorr Bremse France, Magna International and Piaggio (Italy).
Plants
India (18)
Sales
INR 4.59bn (79.3m, 31 March 2007)
Employees
c. 1,500 (2007)
Recent Developments Aurangabad Electricals focus is now on die cast

components. 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. Aurangabad Electricals is working towards vertically integrating its die-casting business by adding a full fledged tool room and machining centre. The company is promoting fully machined castings to strengthen its relationship with customers by partnering them as a full service supplier. Further the company is making technological advancements in its die-castings to meet the customer requirements based on tougher emission norms. The focus is on developing a deep engineering competence. Aurangabad Electricals has developed strong relationship with its customers and is keen to concentrate on them for future growth in the die-casting segment. The group has entered new segments, such as fasteners and wheels, both of which have
105
shown good demand. Bagla Group is building its second line of offerings to widen its reach in the market. Bagla Group has grown with Bajaj Auto in the two wheeler industry but has added new customers in four wheelers and commercial vehicles. Revenue target for 2010 is fixed at, INR 10bn (173m, 31 March 2007) wherein 25% of the business is from export. Though the company is keen on the organic route for growth, Bagla Group is working on options to acquire technical competence in the machining space. Joint-ventures Bagla Group has a joint-venture with LI IN Electricals, Taiwan for the production of relays. LI IN holds 25% equity in the joint-venture. Bagla Group shares a technical collaboration with Shihlin Electric for HT Coil production. Bagla Group also shares a technical collaboration with Taigene Electric, Taiwan for magneto production. Investments List In 2007, Bagla Group invested an undisclosed amount for setting up a gravity die-casting facility in Uttaranchal, Uttar Pradesh. In 2006, Bagla Group setup a fastener manufacturing facility at Aurangabad, with an installed capacity of 560 ton per month. The plant can be further upgraded to handle production volumes of upto 700 ton per month. In 2003, the company set up a facility for die-casting and complete wheel rim assembly at Chakan, near Pune (Maharashtra) for motorcycles. In 2004, the company started manufacture of wheel rims, spokes and nipples, as a forward integration to supply complete wheel assemblies for motorcycles. Also in the same year, to meet the internal requirement of dies and moulds, the company set up a tool room with latest dies and moulds manufacturing facilities. The tool room department has won contracts from L&T, Lombardini etc. for supply of moulds and dies. Contracts Aurangabad Electricals supplies bearing frames and air-intake pipes to Tata Motors. Bagla Group also supplies safety brake system components like SBA sets and valves to KnorrBremse. Bagla Group supplies die cast components for Behrs viscous clutches. Bagla Group supplies complete wheel and wheel ancillaries to Bajaj Auto for its entire range of products. In 2005, the company won contracts to supply die-casting components to Bajaj Auto Ltd., Piaggio, Behr India, L&T and Lombardini. 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. Certification Aurangabad Electricals is accredited with TS 16949, ISO 9001 and QS 9000 status. Infrastructure Multiple CNC winding machine Epoxy powder coating machine Wave soldering machine Computerized magneto test bench Vaccum potting machine for H.T. coils H.T. coil testing machine Fully automatic die-casting machines ranging from 150 ton to 400 ton locking force with real time control. Liquid painting plant Brake system manufacturing lines with brake drum and panel assembly
106
Wheel centering and tightening machine Nipple feeding and tightening machines (Panasetters)
Financial Overview In the financial year 2007, Aurangabad Electricals generated sales worth INR 4.59bn (79.3m, 31 March 2007). Aurangabad Electricals contributed 87% of the total revenue with, INR 4.01bn ( 69.3m, 31 March 2007) while Aurangabad Motors and BG-LIN contributed INR 450m ( 7.77m, 31 March 2007) and INR 13.5m (0.23m, 31 March 2007) respectively. Bagla Group companies are privately held and do not publish financial statements. Outlook Bagla Group has witnessed substantial growth backed by its entry into the
die-casting space. The group is poised to make steady growth by scaling up its capacity. 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, the technical competence gap is expected to be bridged in medium term. The groups strategy to follow multi product, multi customer and multi location, with the centralized core competency of engineering will support in achieving its growth target.
107
Bajaj Motors
Forgings and machined parts
Address
Bajaj Motors Ltd 39-40 Km Stone, Delhi-Jaipur Highway, Narsingpur, Gurgaon 122 001, Haryana, India Tel: +91 124 2371 453 Fax: +91 124 2372 553 Internet: http://www.bajajmotors.com
Incorporated in 1986, Bajaj Motors is a supplier of precision engine components for two-wheelers, four-wheelers, tractors and other heavy machine equipment.
Bajaj Motors started operations in 1986. In 1992, its second machining unit was established and in 1995, its third machining facility commenced operations. In 2000, Bajaj Motors' forging plant began and the company started its exports in 2003. Currently, the company employs 1,800 people at its three machining plants and one forging plant, all located in Haryana. Bajaj Motors' major domestic customers include Hero Motors, Hero Honda, Kinetic Engineering, New Holland Tractors India and Suzuki Motors. The company also supplies to automotive suppliers including the Endurance group, Gabriel India, Hema Engineering, Munjal Showa and Sandhar Technologies. Bajaj Motors exports components to CNH Italy, Husqvarna, V M Motori and Tenneco Automotive
Senior Officers
V P Bajaj, Chairman & MD S P Bajaj, Director Vikas Bajaj, CEO & Joint MD Ajay Malik, Divisional Manager, Marketing & Export J .C Jha, Executive Director, Machining Plant S.K Vijay, Executive Director, Forging Plant Tarun Bhargava, Divisional Manager, R&D J. S. Thakur, Divisonal Manage, Quality
Recent Developments
Corporate strategy With an integrated forging and machining facility, Bajaj Motors is streamlining its supply capability with an aim to become a niche supplier of precision engine components. Exports is the companys major focus currently for which it is imbibing quality processes in its plants. Currently it supplies to a few overseas customers but plans to increase its presence overseas. Investments In 2000, Bajaj Motors established a new forging plant in Gurgaon (Haryana) and in 2001 it began commercial production. Infrastructure Machining facility has in-house facilities for die designing, heat treatment, tool room, standard room and liquated nitriding. It also has an in-house die manufacturing unit aided by state of art CAD/CAM, designing section with working tools like UNIGRAPHICS, DEL CAM, CATIA. Forging facility has 500T, 600T, 630T, 750T (2 press), 1000T, 1600T with capacity of forgings from 40 Grams to & 7 Kg. In-house normalising plant, three-shot blasting units, phosphating plant, nitriding plant. More than 400 different machines consisting CNCs, VMCs, CLGs, SPM, GPM etc. Other facilities include induction hardening facility, metallurgical labs, and automated powder coating plant.
Products
Arm valve rockers, bushes, bushing (ferrous & nonferrous), cold forged and cold extruded parts, CNC machining and turned components, collar, cam shaft connecting rods, crank pin, crank shafts, crank shaft assemblies, fork gear shift, fork shifter, piston pin, gear shift drum, hot forgings, king pin, piston rod, powertrain assemblies, precision, shaft, SG Iron castings, sheet metal components, spindle axle, stay rod, stem complete steering, tubular components for suspension assemblies, upper bracket
Plants
Haryana (4)
Certifications
Bajaj Motors machining plant as well as forging plant is accredited with ISO 9001:2000 and TS-16949, ISO-14001 certifications from TUV GmbH, Germany.
Sales
c. INR 2bn (31.6m, 31 March 2008) (Year to 31.03.08)
Financial Overview
In 2008, Bajaj Motors sales were estimated at INR2bn (31.6m, 31 March 2008).
Outlook
While Bajaj Motors has strong supply linkages with two-wheeler OEMs, its contribution to four-wheeler programs is weak. The two wheeler market has slowed down in the last two years and this has affected its business volumes. Also, key customer Hero Honda has partly shifted production to a new unit in Uttarakhand
Employees
c. 1,900 (31 March 2008)
108
which enjoys a ten year tax break. While several suppliers have followed Hero Hondas to the new location Bajaj continues to utilize its present facilities.
109
Banco Products
Gaskets & Radiators
Address
Banco Products Limited, Near Bhaili Railway Station, Padra Road, District Baroda - 391 410, Gujarat, India
Banco Products is a supplier of engine cooling components and engine sealing gaskets to the automotive industry. The company's product portfolio includes radiators, intercoolers, oil coolers and engine gaskets. The company derives nearly a quarter of its sales from exports.
Incorporated in March 1961, Banco Products began its automotive operations offering industrial radiators, heat exchangers and gaskets in 1988. Banco Products is a major player in gaskets, heat exchangers and radiator segments. It supplies its products to all-leading Original Equipment companies in India and has a considerable presence in the export markets. The company supplies to Ashok Leyland, Bajaj Auto, Force Motors, Bharat Earth Movers, Greaves, Hero Honda Motors, Hindustan Motors, , Indian Railways, Kirloskar Oil Engines, LML, Mahindra & Mahindra, Maruti Udyog, Sunbeam Industries, Tata Motors, Tractors & Farm Equipment, TVS Motor Company and Yamaha Motor India. Banco Products exports to Case New Holland- Imola- Italy and Jungheinrich Manufacturing, UK apart from supplies to Africa, South East Asia, Middle East and Western Europe.
Tel: +91 265 2680220 Fax: +91 265 2680433 Internet: http://www.bancoindia.com Senior Officers
VK Patel, Chairman Mehul K Patel, CEO RL Kedia, Executive DirectorCommercial VB Rathod, Export-in-charge RR Biswas, Executive Director Operations
Products
Aluminium radiators, Compressed Fibre Jointing Sheets (CFJS), Copper Brass radiators, Gaskets, moulded rubber gaskets
Recent Developments
Corporate strategy While growth in gasket demand has been nominal, Banco Products has seen a growth in the demand of Aluminium radiators especially for exports. As OEMs continue to shift from Copper-Brass to Aluminium radiators Banco expects brisk business. Banco acknowledges competition from international gasket manufacturers to intensify with theirentry into India. Banco will continue to grow its heat exchangers business with new aluminium products like, oil coolers and charged oil coolers. Joint-ventures Banco Products shares an agreement with Japan Metal Gaskets Co., Japan for technical know how for gaskets. Additionally the company has design support from Elring Klinger, Germany for non retorque cylinder heat gasket manufacturing. Investments In 2004, the company announced a new Export Oriented Unit for the supply of Aluminium radiators at a cost of INR 200m (3.73m, 31 March 2004). Certifications Banco Products has been accredited with TS 16949 status.
Plants
Gujarat (4)
Sales
INR 2.98bn ( 47.46m, 31 March 2008)
Employees
c. 600 (31 March 2008)
Financial Overview During the financial year ended 31 March 2008, Banco Products recorded sales worth INR 2.98bn ( 47.46m, 31 March 2008), an increase of 14.16% compared to INR 2.6bn ( 44.94m, 31 March 2007). Profit before tax for the year increased by 69.06% to INR 513.14m ( 8.15m, 31 March 2008) in 2008 compared to INR 303.52m ( 5.24m, 31 March 2007) in 2007. Net profit recorded in 2008 ended 71.42% higher compared to previous years figure of INR 432.99m ( 6.88m, 31 March 2007).
Year 2008 Net sales, INR bn 2.98 Operating profit, INR m 626.65 Profit before tax, INR m 513.14 Net Profit, INR m 432.99
110
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.
111
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 Forges 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 Indias 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 Asias 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 Forges 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 Forges 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
112
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 companys annual sales are about US$60m with a headcount of 150. Federal Forges clients include ZF Lemforder and Goodyear.
113
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 Forges 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 FAWs car assembling operations which manufactures vehicles for Volkswagen and Toyota. BFL shall also leverage FAWs 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 companys 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.
114
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 DaimlerChryslers 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 Europes Kirkstall Forging operations. Bharat Forge took over Kirkstalls 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 years 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 years 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 years 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 years 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 companys 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, CDPs strength has been passenger car chassis components. In the future, Bharat Forge will focus
115
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 Forges 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.
116
Bharat Gears
Gears, gearboxes, furnaces
Address
Bharat Gears Limited, Hoechst House, Nariman Point, 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. Automotive gears account for 99% of the company's business, while furnaces and gearboxes generate the balance. The company largely caters to the tractor segment, commercial vehicle and utility vehicle manufacturers. The tractor segment accounted for nearly 50% of the company's sales in 2007.
Promoted by Bharat Steel Tubes and Raunaq & Co., BGL (Bharat Gears Limited) was incorporated in 1971 to manufacture automotive gears including spiral bevel, straight bevel, spur and helical and worm gears, gear boxes, forgings and continuous gas carburizing furnaces. In 1985, ZF Friedrichshafen AG took an equity stake in the company in exchange for technical know-how. In 1986, BGL began producing gearboxes. In the nineties, ZF increased its equity holding in the company. In this period BGL expanded its production capacity at the Mumbai facility. In 1996, 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, bi-metal bearings per annum at Gairul near Moradabad (Uttar Pradesh, India). A new company was floated for the same purpose under the name of Raunaq Automotive Components Ltd. BGL contributed in the venture with technical support and engineering services and bagged sole marketing rights for the manufactured goods. Thereafter, automotive sales in the commercial vehicles and tractor segment remained subdued forcing the company into losses. BGL made a financial turnaround in 2005 after four years of accumulated losses. BGL's customers comprise of Ashok Leyland, Axles India, Cararro India, Escorts, Godrej, Hindustan Motors, Mahindra & Mahindra, Spicer India, Swaraj Mazda, TAFE, TATA Motors Ltd., Toyota Kirloskar Auto Parts, Voltas Tractors Ltd., Volvo India, VST Tractors (Mitsubishi), in the Indian market. BGL exports gears to customers including Cararro Italy, Dana Corporation, Funk USA, L&T John Deere, New Holland, Same Deutz-Fahr, TDI USA and Transaxle Manufacturing of America.
Fax: +91 22 2535 1651/ 2282 1465 Internet: http://www.bharatgears.com Senior Officers
Surinder P Kanwar, Chairman & Managing Director Sameer Kanwar, Executive director Strategic planning NV Srinivasan, Corporate Business Head GM Kinnarkar, Head OE Marketing Milind Pujari, Financial controller Sameer Kanwar, Executive Director, Strategic Planning KK Deshpande, Head, Business Development
Products
Axle shafts, brass rings, crown wheel, differential cage, differential gears, furnaces, gear boxes, gearbox housing, heat treatment furnaces, pinions, ring gears, straight bevels, transmission gears, transmission shafts
Plants
Faridabad (1), Thane (1)
Recent Developments
Corporate Strategy In 2006, Bharat Gears observed robust growth especially with the government support to the agricultural sector and the removal of excise duty on tractors. Tractors are the single largest source of revenue for Bharat Gears. Having achieved a financial turnaround, BGL is now aiming for the export market with its range of products. Exports contribute 25% of sales. In the domestic market, BGL has identified commercial vehicles as a key growth driver. In the passenger car market, 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. Joint-ventures Bharat Gears has a financial and technical collaboration with ZF Friedrichshafen AG since 1985. ZF holds 26% equity in the company. BGL also has a tie up with Spicer India. 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. Further BGL also undertakes production of - sealed quench, continuous gas
Sales
Employees
1,319 (31 March 2008)
117
carburisers, rotary hearths etc. under a licensing arrangement from AFCHolcroft, USA. Contracts The company has received supply orders form OEMs in Europe, China and USA. In 2005, BGL received Tata Motor's contract for the supply of transmission gears for the Tata Ace program. BGL shall hike output to 22,500 gears per month by April 2006. The company also supplies crown pinions for the Ace program. In 2004, BGL started supplies of gears to Toyota Kirloskar Auto Parts. BGL supplies nearly 160,000 gearboxes to Bangalore based Toyota Kirloskar Auto Parts for exports. Certifications BGL has been accredited with QS 9000 certification.
Financial Overview
In the financial year ended 31 March 2007, BGL recorded net sales of INR 2.36bn (37.48m, 31 March 2008), increasing 4.88% over previous year's sales of INR 2.25bn (38.93m, 31 March 2007) in 2007. Profit before tax was INR147.40m (2.34m, 31 March 2008) compared to INR117.20m (1.52m, 31 March 2007) in 2007, an increase of 25.76%. The company reported a net profit of INR 100.8m (1.6m, 31 March 2008) in 2008 as compared to INR 87.90m (1.52m, 31 March 2007) in 2007, an increase of 14.67%. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales, INR bn 2.36 2.25 1.87 1.67 1.10 Gross sales, m 37.48 38.93 34.75 29.55 20.46 Operating Profit, INR m 324.8 314.70 238.60 247.60 185.60 Operating Profit, m 5.16 5.43 4.44 4.38 3.47 Profit Before Tax, INR m 147.4 117.20 48.70 43.60 -14.60 Profit Before Tax, m 2.34 2.02 0.91 0.77 -0.27 Net Profit, INR m 100.8 87.90 39.80 43.60 -14.60 Net Profit, m 1.60 1.52 0.74 0.77 -0.27
Outlook BGL has managed to bag significant contracts and has show impressive growth over the past few years. BGLs 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. The most significant non-tractor contract is for the Tata Ace program, for which Bharat gears started supplying in 2005.
118
Bharat Seats
Automotive seats
Address
Bharat Seats Limited, B-238, Okhla Industrial Area, Phase 1 New Delhi- 110 020
Bharat Seats is a major supplier of seat assemblies to Maruti Udyog. Its plant is located in the Maruti joint-venture complex, adjacent to Maruti's assembly plant.
Bharat Seats was established as a three-way joint-venture between Suzuki Motor Company, Maruti Udyog and the Relan Group in 1986 to supply seats for Maruti's product range. In 1999, the company added headrests to its product portfolio. The company operates from a facility at Gurgaon (Haryana) inside the Maruti jointventure complex, vendor park. Bharat Seats supplies solely to Maruti Udyog.
Tel: +91 11 2681 4585 Fax: +91 124 2341 188 Senior Officers
ND Relan, Chairman Rohit Relan, Managing Director RK Gupta, Vice President-Finance Sanjeev Kumar, Assistant General Manager- Finance
Recent Developments
Corporate strategy Bharat Seats has cut down its labour strength in order to ensure competitiveness in the company. It has diversified into production of floor carpets and is also looking at other products after years of being a sole supplier to Maruti. The company is working on new products and is scouting for new customers to grow its business. Bharat Seats has commissioned in-house designing and testing capabilities to reduce product validation time. Divestments In 2005, Bharat Seats reduced its workforce through a voluntary retirement scheme. 73 employees opted for the scheme. Joint-ventures Bharat Seats has a technical alliance for seat assemblies with Houwa Kogyo Co. Ltd. Contracts Bharat Seats supplies floor carpets to Maruti Udyog. The company has been selected to supply floor carpets and seats to Suzuki Motor Corporation India for its future models. Bharat Seats has a contract to supply seats to Suzuki Motorcycles India.
Products
Automotive seat assemblies and headrests, floor carpets
Plants
Gurgaon (Haryana)
Sales
INR1.99bn (31.57m, 31 March 2008)
Employees
c.225 (31 March 2007)
New Product Developments In 2005, Bharat Seats designed and developed

seating systems for Suzuki motorcycle and a profile cutting system for Maruti Suzuki Alto floor carpet. Certifications In 2005, Bharat Seats Seat and Frames Testing Laboratory was certified by NABL. The company has also commenced operations at a research and development centre certified by the Department of Science and Technology, Government of India. Bharat Seats has been accredited with TS 16949 status.
Financial Overview
In the financial year ended 31 March 2008, Bharat Seats generated net sales worth INR1.99bn (31.57m, 31 March 2008), a growth of 13.45% compared to sales worth INR1.75bn (30.26m, 31 March 2007) in 2007. Operating Profit increased 8.81% to INR78.36m (1.24m, 31 March 2008) from INR72.01m (.1.24m, 31 March 2007). Net profit was reported at INR32.33m (0.51m, 31 March 2008), an increase of 10.37% compared to INR 29.29m (0.51m, 31 March 2007) in 2007. Year Gross sales, INRbn Operating profit, INRm Profit before tax, INRm Net Profit, INRm
119
2008 2007 2006 2005 2004 Year
1.99 1.75 1.44 1.38 1.12 Gross sales, m 31.57 30.26 26.72 24.47 20.89
78.36 72.01 73.71 68.97 82.94 Operating profit, m 1.24 1.24 1.37 1.22 1.55
48.03 37.64 34.47 26.75 41.22 Profit before tax, m 0.76 0.65 0.64 0.47 0.77
32.33 29.29 25.95 24.45 31.42 Net Profit, m 0.51 0.51 0.48 0.43 0.59
2008 2007 2006 2005 2004
Outlook Bharat Seats finally added a second customer, Suzuki Motorcycle to its portfolio. Unlike other Maruti associate vendors who have reduced their dependence on Maruti, Bharat Seats was till recently solely dependent on Maruti. Bharat Seats had a monopoly in seats supply to Maruti but that has changed now. Maruti has in the recent past awarded seating contracts to other vendors putting Bharat Seats in a precarious position. Further, sales of the model program it supplies to have decreased with time. Bharat Seats future will depend on winning new contracts and diversifying its product range. 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.
120
Bhushan Steel
Automotive Steels
Address
Bhushan Steel & Strips Limited F-Block, 1st Floor International Trade Tower Nehru Place New Delhi- 110 019
Bhushan Steel & Strips Limited (BSSL) is Indias third largest secondary steel supplier in India. BSSL is Indias only steel supplier of widest width automotive grade cold rolled (CR) steel. The company is also the largest supplier of steel to the automotive and white goods industry in India.
BSSL has three manufacturing set ups in India located close to Northern and Western automotive clusters. BSSL supplies to Ashok Leyland, Fiat, Ford, HM, Honda Motorcycle & Scooter India, Honda Siel, Hyundai India, Kirloskar, LML, Mahindra, Maruti Suzuki, Tata Motors and Yamaha. The company also exports its products to markets like Australia, Chile, Mexico, New Zealand, Philippines, Portugal, South Korea and Spain.
Tel: + 91 11 2646 2373 Fax: + 91 11 2647 8750 Internet: http://www.bhushansteel.com Senior Officers
Brij Bhushan Singal, Chairman Sanjay Singal, Vice Chairman Neeraj Singal, Managing Director
Recent Developments
Corporate strategy BSSL has been working on a three-pronged corporate strategy that aims to facilitate backward integration, diversify client base and introduction of higher value added products. 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. The company is increasingly eyeing the automotive and white goods industry for specialised products to boost its bottom line. The company is looking at aligning its product mix to increase the share of business it derives from OEMs and export markets. Joint-ventures BSSL has a strategic tie-up with Sumitomo Metal, Japan. BSSL also has technical tie ups with Sumitomo, Japan; Hitachi, Japan; Ebner, Austria, Kvaerner Clecim, France; Waldrich Siegen, Germany; Heinrich George, Germany; Fimi, Italy; Man B&W, Germany; LOI Thermoprocess GmbH, Germany; Mecon; BHEL; RITES; WAPCOS; ABB Lurgi; SMS Demag, Germany and Daniel Corus, Netherlands. Investments In 2004-05, Bhushan Steel announced the setting up of a green field hot rolling facility at Orissa. BSSL intends to commence production of sponge iron and billets by April 2006. With the new facility BSSL shall enter the primary steel sector. In 2004-05, BSSL commissioned CR wider mill, precision tube mill, galvanising line, high tensile steel strapping line, tempered and hardened steel and colour coating line at its Khopoli (Maharashtra, India) based facility. Also in 2004-05, BSSL commissioned a CR (narrow) and pipe plant at Sahibabad (Uttar Pradesh, India). In 2003-04, BSSL commissioned a plant at Khopoli (Maharashtra, India) for the production of cold rolled steel. The plant has an installed production capacity of 0.43MTPA of which 0.24MTPA is for galvanised steel. Certifications BSSL has been accredited with ISO 9002 and QS 9000 certifications.
Products
Colour coated sheets, hardened strips, high tensile steel strapping, precision tubes, spring steels, tempered strips
Plants
India: Maharashtra (1), Uttar Pradesh (2)
Sales
INR 26.89bn ( 507.78m, 31 March 2005) (Year to 31.03.05)
Employees
2,166 (31 March 2005)
New Product Developments BSSL is working on introducing Galume value

added steel in India. In 2004-05, BSSL introduced colour coated sheets in India. In 2004-05, BSSL developed special grades of import substitute CR steels like HSLA (High Steel Low Alloy) witch applications like car panels. In 2004-05, BSSL also developed IF steel for applications like car body outer
121
panels and white goods and high tensile material for wheel rims.
Financial Overview During fiscal 2007-08, BSSL generated sales worth INR46.73bn (738.3m, 31 March 2008) compared to sales worth INR42.02bn (725.7m, 31 March 2007) generated in the previous fiscal, a growth of 11.2%. Profit before tax rose by 34.6% to INR8.87bn (140.15m, 31 March 2008) in 2008. Profit after tax improved from INR3.13bn (54.1m, 31 March 2007) in 2007 to INR4.24bn (67.0m, 31 March 2008) in 2008, an increase of 35.46%.
For the six-month period ended 30 September 2008, Bhushan Steel recorded sales worth INR16.46bn (241.12m, 30 September 2008), an increase of 39% compared to previous years figure of INR11.85bn (208.77m, 30 September 2007). Operating profit for the six-month period was INR2.72bn (39.85m, 30 September 2008) in 2008, compared to previous years figure of INR1.65bn (29.20m, 30 September 2007). Net profit improved by 38.25% at INR1.03bn (18.22m, 30 September 2007) in 2007 compared to a net profit of INR1.43bn (17.62m, 30 September 2008) in 2008. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales, INR bn 46.73 42.02 30.70 28.68 17.59 Gross sales, m 738.3 725.7 246.70 507.78 328.60 Operating Profit, INR bn 8.87 6.59 4.08 4.10 2.77 Operating Profit, m 140.15 116.1 70.2 72.59 51.75 Net Profit, INR bn 4.24 3.13 1.54 1.53 0.90 Net Profit, m 67.0 54.1 26.5 27.09 16.81
Outlook The last financial year has been good for the Indian steel industry in general and Bhushan Steel in particular. A massive increase in demand of steel in the last year, coupled with spiralling prices drove Bhushan Steels sales and profits. However, steel prices have cooled off since then and the Indian automotive industry is likely to follow the global trend of slowdown. Bhushan Steel is also expected to face global competition in the wake of more international players entering the Indian market.
122
Birla Corporation
Automotive interiors
Address
Birla Corporation Limited Birla Building 9/1, R. N. Mukherjee Road Kolkata-700001 India
Birla Corporation is a part of the MP Birla Group with interests in automotive trims, carbides, cement, gases, jute, PVC goods and steel foundry.
In 1995, 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. The company has an installed production capacity of 567,000 pieces per annum and produced 199,000 pieces in 2005. Birla Corporation has three auto trim facilities one each at Birlapur (West Bengal), Chakan (Maharashtra) and Gurgaon (Haryana). While the Birlapur (West Bengal, India) facility supplies largely to Hindustan Motors, the Gurgaon (Haryana) facility supplies to Maruti Udyog and the Chakan (Maharashtra) facility supplies to manufacturers in the Western region. The company supplies door trims to General Motors India, Hindustan Motors, Johnson Controls (Australia), Maruti Udyog and Tata Motors.
Tel: +91 33 2213 0380/ 1680 Fax: +91 33 2248 2872/ 7988 Internet:
http://www.birlacorporation.com
Senior Officers
KC Mittal, Managing Director BR Nahar, Executive Director & CEO PK Chand, Joint President Finance, Accounts & MIS Alok Kumar, Vice- President, Coordinator, Auto Trim Division S Goswami, Vice President
Recent Developments
Corporate strategy Despite Birla Corporations unique offering and supply capability the companys offtake has been extremely low. The companys capacity utilization was at 12% in 2007, indicating a major demand crunch at a time when the automotive market is seeing double digit growth. Birla Corporation has been supporting the use of natural fibrebased interiors over plastic-moulded components. The company claims that the use of natural fibrebased interiors helps cut down weight, cost and environment problems considerably. Birla Corporation is aggressively marketing its environment-friendly products to OEMs, especially the commercial vehicle manufacturers following the lead from DaimlerChrysler, which is switching car interiors to natural fibre. 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. Birla Corporation expects similar norms to be enforced in the country. Divestments In January 2005, Birla Corporation announced its intention to close its Birlapur (West Bengal) facility. 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. Birla Corporation supplies door trims to Tata Safari vehicle. The company supplies interiors trims for pillars, and parcel trays for the HM Ambassador model. Birla Corporation has been awarded a contract to supply door trims to the face-lifted Mahindra Scorpio model. Birla Corporation supplies trims to the HM-Mitsubishi Lancer program. Infrastructure Birla Corporations supply capabilities include non-woven jute felt, nonwoven synthetic felt, underlay carpet material, compression moulding,
Products
A, B, C pillars, door trims, headliners, parcel trays, pillar trims, trims
Plants
Autotrim division:Birlapur (West Bengal), Chakan (Maharashtra), Gurgaon (Haryana)
Sales
Group: INR17.25bn (273.90m, 31 March 2008)
Employees
Automotive: c. 230 (2008)
123
vacuum forming, ultrasonic welding, high frequency welding, lamination, chemical bonding and synthetic moulds. The companies substrate capabilities include jute fibre, green wood and resinated felt. Birla Corporation has a net installed capacity of 0.57m pieces per annum for various trims.

Birla Corporation has developed a jute composite-based headliner for the HM Ambassador model.
Certifications Birla Corporation is accredited with ISO 9002, QS 9000 certifications.
Financial Overview
In the financial year ended 31 March 2008, net sales of Birla Corporation were INR17.25bn (273.90m, 31 March 2008), a decrease of 17.25% compared to INR17.95bn (309.91m, 31 March 2007) in 2007. Net profit was INR3.93bn (62.44m, 31 March 2008) in 2008, an increase of 20.55% compared to INR3.26bn (56.34m, 31 March 2007) in 2007. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR bn 17.25 17.95 14.33 13.43 12.43 Net sales, EUR m 273.90 309.91 266.91 237.7 232.1 Operating profit, INR bn NA 5.20 1.92 1.45 1.00 Operating profit, EUR m NA 89.79 35.73 25.66 18.68 Profit before tax, INR bn 5.51 4.62 1.4 0.94 0.42 Profit before tax, EUR m 87.46 79.74 26.83 16.58 7.77 Net Profit, INR bn 3.93 3.26 1.26 0.87 0.42 Net Profit, EUR m 62.44 56.34 23.42 15.37 7.76
Outlook
Birla Corporations failure to win new business from the Indian automotive OEMs for its auto trims business has resulted in spare capacity. The key reason for this situation lies in the volumes being supplied. While the companys products have found favourable response from premium segment OEs, high volume orders have not been tapped at this moment. Auto Trim division which had turned around in 2005 has again slipped back into losses.
124
Birla Tyres
Automotive tyres, tubes and flaps
Address
Birla Tyres Limited Shivam Chambers 53 Syed Amir Ali Avenue Kolkata-700 019 India
Part of the US$2.0bn industrial conglomerate, BK Birla group Birla Tyres Limited (BTL) is amongst the youngest of all major tyre manufacturers in the Indian market.
Birla Tyres commenced operation in 1992 with the initial capacity of one million tyres per annum from a facility in Balasore (Orissa, India). The company manufactures truck, rear tractor, light truck, passenger bias and passenger radial tyres, tubes and flaps. The company exports 30% of its production to 43 countries. Birla Tyres has an installed capacity to manufacture 2.1 million tyres, 1.4 million tubes and 1.1 million flaps per annum at its Balasore plant. BTL has built a strong domestic distribution network of five regional offices, seventy four depots and 2000 dealers. 68% of BTLs output caters to the commercial vehicle segment which is aligned with the industrial trend of 70%. The companys product range spans from lug, semi lug and rib pattern for various segments of the Indian road transport. The company also serves various state transport units. BTL exports a third of its produce to over 43 countries like Bangladesh, Vietnam, Middle East, Africa, Philippines, Afghanistan, South Africa, North America, etc.
Tel: +91 33 2247 6513, 2247 8516, 2240

0192, 2240 4616, 2240 4617 Fax: +91 33 2247 9074, +91 33 2240 5132 Internet: http://www.birlatyres.com
Senior Officers
BK Birla, Chairman Amit Chowdhury, Chief Technical Executive Ajay Uppal, Vice President, Marketing
Products
Flaps, tubes, tyres
Recent Developments
Corporate strategy In recent years, 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. 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; Birla Tyres has been making progressive investments to tap the rapid radicalisation in the commercial vehicle segment. Joint-ventures Birla Tyres has a technical tie-up with Pirelli, UK. Investments In June 2007, Kesoram Industries, Birla Tyres 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.
Plants
Orissa (1)
Sales
INR 12.46bn (196.87, 31 March 2008)
Employees
c. 2,000
New Product Developments In December 2002, BTL, launched XPL Tyre

which was pitched as the most expensive tyre in the country. The tyre has a load carrying capacity of 18 tonnes and above, hence being the heaviest load carrying tyre. BTL expects the tyre to offer improved mileage savings of 10 to 15%. Certification BTLs manufacturing facility is ISO 9001, ISO 14000 and QS 9000 certified. The company has also bagged the TPM excellence award from the Japan Institute of Plant Maintainence.
Financial Overview During the financial year ended 31 March 2008, Birla Tyres
generated sales worth INR12.46bn (196.87, 31 March 2008) in 2008. Birla Tyres is a non-listed entity of the BK Birla Group owned Kesoram Industries. Kesoram Industries does not publish separate financial statements for Birla Tyres.
Outlook Birla Tyres is one of the five large tyre manufacturers in India. Birla
125
Tyres has managed to maintain a steady position in the market despite a strong challenge from the Chinese tyre imports.
126
Bosch India
Car multimedia, diesel fuel-injection equipment, electronic systems, gasoline systems and spark plugs
Address
Motor Industries Company Ltd, Post Box No 3000, Hosur Road, Bangalore 560030 India
Bosch Limited is the largest automotive supplier group in India. Its flagship Motor Industries Company is the leader in diesel fuel-injection systems (75% market share), spark plugs (62% market share) and engine components.
Bosch Group in India comprises of the following four subsidiaries: Bosch Ltd: Robert Bosch GmbH owns 69.73% stake in Bosch Ltd, which is its flagship company in India. Initially setup as Mico in 1951 and presently Indias largest auto component manufacturer the company was renamed to Bosch Ltd in 2008. Bosch is the largest manufacturer of diesel fuel-injection systems in India with four facilities, one each in Nashik (Maharashtra) and Jaipur (Rajasthan) and two in Bangalore (Karnataka). Boschs product range is classified into two segments - automotive and non-automotive. The automotive segment is divided into four divisions: Diesel Systems, Gasoline Systems, Car Multimedia and Automotive Aftermarket. Its products include diesel fuel-injection systems, spark plugs, automotive accessories, automotive electricals, Blaupunkt car multimedia systems and Bosch automotive products. Further, Bosch has been identified as Boschs center of global competence for single cylinder pumps, multi-cylinder inline and distributor pumps. The company derives about 17% of its sales from exports. Robert Bosch India Ltd: It is a wholly-owned subsidiary of Robert Bosch group in India. The company develops software and engineering solutions for all global business units of Bosch group. Robert Bosch India Ltd has a facility in Bangalore with 2,900 employees and is Boschs largest software development centre outside Germany. Bosch Chassis Systems India Ltd: Formerly known as Kalyani Brakes Ltd, it is a leading manufacturer of hydraulic brakes in India. The company was founded 1982 and in 2005 was acquired by Bosch which now owns 80% stake in the company. Bosch Chassis Systems has 1,800 employees and manufactures conventional braking systems and components for passenger cars, tractors, two and three wheelers in its facilities in Jalgaon (Maharashtra), Chakan (Maharashtra) and Manesar (Haryana). The company achieved sales of INR3.57bn (63m, 31 July 2005) in the financial year 2005. 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. Bosch holds 95.5% stake in the company and employs 300 people. Currently, the company undertakes CAD (Computer Aided Design) projects for Bosch Rexroth AG. Bosch supplies to all major vehicle manufacturers including Ashok Leyland, Eicher Motors, Ford India, Hyundai Motors, Maruti, Mahindra & Mahindra and Tata Motors.
Tel: +91 80 22220088 / 22992111 Fax: +91 80 2227 2728 Internet: http://www.boschindia.com Address
Robert Bosch India Limited 123 Industrial Estate, Hosur Road Koramangala, Bangalore 560 095 India
Tel: + 91 80 5757 4545 Fax: +91 80 2508 1004 Internet: http://www.boschindia.com Senior Officers
Dr A Hieronimus, Chairman V K Viswanathan, Managing Director
Products Air filters, auto electricals- starter motors and alternators, automotive relays
and gear pumps, brake systems,
Blaupunkt car audio system, clutch plates, diesel filter inserts, diesel fuel injection equipment, electric power tools, festoon lamps, fog lamps, glow duration units, glow plugs, glow resistors, halogen bulbs, horns, hydraulic gear pumps, ignition coils, industrial equipment, lube oil inserts, miniature lamps, spark plugs, stop and tail lamps, two-wheeler head lamp assembly, V-belts, voltage regulators, wiper blades Plants
Karnataka, Maharashtra, Rajasthan, Tamil
Recent Developments
Corporate strategy
In recent years, Bosch has setup extensive development facilities in India to cater to its global product development programs, specifically on IT functions. With its core product mix of fuel injection systems and brakes, Bosch has built
a strong presence in India. Bosch was nominated by Mahindra and Hyundai as the supplier for their common rail system supplies. Bosch has also been mandated to supply to the Tata Nano and will lend considerable to the company as the Ultra
127
Nadu
Low Cost Car concept is being adopted by atleast four OEMs. Bosch has also been exporting injection system components to its international supply network. 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. 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 division manufactures a wide range of auto components and accessories for the domestic and export markets. Acquisitions In July 2005, Bosch increased its stake in Kalyani Brakes from 40% to 80% and renamed the company to Bosch Chassis Systems India Ltd. The company was previously a joint-venture between Kalyani Group and Bosch. Previously, Bosch Chassis had a joint-venture with Brembo SpA, called KBX Motorbike Products Pvt Ltd which was later merged into itself while Brembo continues to contribute product licences and technology. Joint-Ventures In February 2008, Bosch formed a 51:49 joint venture with Igarashi Motors India Ltd established a joint venture for developing, manufacturing and selling DC motors and systems for wiper, HVAC, engine cooling and window lift applications in India. In July 2005, Bosch Bosch formed a 50:50 joint-venture with Mann+Hummel GmbH to develop and produce fuel filter systems, oil, air and cabin filter systems for the domestic and export market. The joint-venture will start production by mid 2006 with 350 employees at an investment of 6m. Investments In April 2006, Bosch announced its plan to invest INR5.5bn (97.1m, 30 April 2006) to manufacture common rail system at it Nashik plant in Maharashtra (India). The company supplies common rail system to Maruti Suzuki diesel engine facility at Haryana (India). In January 2006, Bosch Group announced its plan to enhance investments in India to INR18bn or around 325m between 2005 and 2008. This amount extends the previously announced investment plan of INR10bn (17.5m, 31 August, 2004) between 2004 and 2007. A special focus will be on modern diesel technology apart from investments in other areas in general. The company announced the previous investment plan in August 2004) In 2005, Bosch announced an investment of INR1.8bn (33.7m, 31 December 2005) in its Indian subsidiary Bosch to produce and supply hydraulic systems. In March 2005, Bosch announced its plan to invest in expanding Bosch Diesel Service Workshop network across the country. In December 2004, Bosch invested INR40m (0.67m, 31 December 2004) for the development of improved capsule packaging for main components of its fuel-injection System. In August 2004, Bosch announced its plan to invest INR10bn (17.5m, 31 August, 2004) in Bosch upto 2008. Of this amount, INR550m (9.9m, 31 August 2004) has been invested in the Bangalore and Nashik facilities. The Bangalore facility produces diesel common rail systems while the Nashik plant currently makes injector body, armature body and valve set for exports only and in the second phase will produce injectors for the domestic and export markets. In April 2003, Bosch opened its Naganathapura export-oriented plant near Bangalore. This unit manufactures various types of regulators used in alternators for light and heavy commercial vehicles in Europe and other countries. These are exported to Robert Bosch alternator plants in Cardiff (UK), Goettingen (Germany), South Africa, Treto (Spain), and the aftermarket in Karlfsruhe (Germany). Contracts In 2006, Bosch began supplies of hydraulic systems to Maruti Udyog. In February 2005, Bosch commenced supplies of its diesel common rail systems for the Mahindra Scorpio 2.6 Turbo program.
Sales
INR42.8bn (737.38m, 31 December 2007)
Employees
Bosch Limited: 10,085 (December 2007) Group: 18,000 ( December 2007)
128
The company supplies diesel common rail system for the Hyundai Accent and Elantra models.
Certifications All four plants operated by Bosch are TS 16949 and IS0 14001 certified. Robert Bosch India is an ISO 9001 and CMM Level 4 organisation.
New Product Developments Bosch has a R&D centre built over 10,000 square metres employing 270 engineers. It is responsible for the development of various types of pumps, nozzles and injectors for the Bosch group. It spends about 2% on its R&D activities. In January 2006, Bosch launched its range of engine cooling systems in India. The company will commence supplies from its Naganathapura plant by the third quarter of 2006. In October 2005, Bosch announced plans to introduce Denoxtronic technology for heavy commercial vehicles in India by 2010 when Euro IV norms come into effect. In February 2005, Bosch introduced its diesel common rail system in the Indian market.
In August 2004, Bosch announced that it will introduce electronic diesel control systems in India.
Financial Overview In the financial year ended 31 December 2007, net sales of Bosch was INR42.8bn (737.38m, 31 December 2007), an increase of 13.1% compared to previous years sales of INR37.84bn (650m, 31 December 2006). 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. The profit before tax was reported as INR8.56bn (147.5m, 31 December 2007), an increase of 32.37% compared to INR6.47bn (111.09m, 31 December 2006) in 2006. The net profit increased 11.17% to INR6.09bn (104.97m, 31 December 2007) from INR5.48bn (94.15m, 31 December 2006) in 2006.
Year 2007 2006 2005 2004 2003 Year 2007 2006 2005 2004 2003 Gross sales, INR m 42,796.30 37,836.80 30,891.90 24,168.90 19,626.50 Gross sales, m 737.38 650.04 579.22 405.55 344.05 Operating profit, INR m 10,287.00 8,400.90 6,696.80 6,260.50 4876.9 Operating profit, m 177.25 144.33 125.57 105.05 85.49 Profit before tax, INR m 8,559.60 6,466.50 5,209.10 5,597.10 4085.7 Profit before tax, m 147.48 111.09 97.67 93.92 71.62 Net Profit, INR m 6,092.10 5,480.00 3,430.70 3,747.60 2,350.40 Net Profit, m 104.97 94.15 64.33 62.88 41.20
Outlook
Bosch anticipates the common rail system market in India to expand ten fold to 600,000 units by 2013 and has invested heavily to localise production for critical components like injectors. With Hyundai and Mahindra as long term customers, the company has effectively cornered a significant share of this market. The companys rollout of electrical drives and washer system will expand its product mix considerably, especially since the company was only selling wiper blades in India.
129
Brakes India
braking systems and ferrous castings
Address
Brakes India Ltd Padi, Chennai-600 050
Tel: +91 44 26258161 Fax: +91 44 26257844 Internet: http://www.brakesindia.com Senior Officers
R Mukundan, Business development, Executive Director of Brake division Badri Vijayaraghavan, Executive Director, Marketing V Narasimhan, Executive Director of Foundry Division P Krishna Kumar, Divisional ManagerOperations
Brakes India is a subsidiary of the TVS group with a market leadership in brakes and castings for automotive and nonautomotive applications. The company generates sales of over 60% from the domestic OEM market, while the rest is from exports to over 35 countries.
Brakes India (BIL) began operations in 1962 as a joint-venture between T V Sundram Iyengar and Sons and Lucas Industries Plc., UK, (now merged into TRW Inc., USA) to manufacture braking equipment for automotive and other applications. The company commenced exports of brake components in 1968 and currently exports to over 35 countries. The company consists of the following divisions: Brakes division: Manufactures brake products including, drum brakes for commercial vehicles, trailer brakes for exports, tractor brakes, master cylinder and booster assemblies, wheel cylinder assemblies. Foundry Division: Manufactures permanent mould die-castings, grey iron and SG castings using the Disamatic process. Polymers Division: Manufactures engineered plastic compounds for various applications.
Products
Boosters, brake assemblies, calipers, clutch fluid, heavy duty brakes, radiator coolant SG castings & engineered plastic compounds, master cylinders, valves, hoses, wheel cylinders
Plants
Gujarat, Haryana, Karnataka, Maharashtra, Tamil Nadu, Uttaranchal
The company supplies a major part of its Grey Iron and SG (Ductile) Iron castings to TRW, Meritor and Bosch. BIL has four brake manufacturing facilities and three assembling units in India. The assembly units are located at Pune, Halol and Gurgaon. BIL exports its products, to both overseas vehicle manufacturers and replacement markets, including hydraulic brake and clutch cylinders, kits, seals, brake and clutch hoses, brake pads, calliper pistons and lined shoe assemblies for various passenger cars and commercial vehicles manufacturers. BIL's customers include Arvin Meritor, Ashok Leyland, Bosch, DaimlerChrysler, Eicher Motors, Escorts, Fiat India, Ford Motor India, General Motors, Hindustan Motors, Honda, L&T, Mahindra & Mahindra, Maruti Suzuki, Swaraj Mazda, TAFE, Tata Motors, Toyota, TRW, TVS and Volvo.
Sales
INR 5bn (79.4m, 31 March 2007) (Year to 31.03.07)
Employees
c. 3,200
Recent Developments Corporate strategy Brakes India is registering substantial growth with supplies to
its wide client base. In its bid to leverage existing OE relationships, BIL commissioned a new manufacturing unit in the state of Uttaranchal where two of its principal domestic customers had setup manufacturing units. Following its strategy of widening its supply footprint, BIL is increasing its presence by adding supplies to two-wheeler, three-wheeler and small four wheeler platforms. The company has an existing capacity of 5m brake assemblies per annum. BIL has increased its foundry division capacity from 60,080 metric tonnes per annum (MTPA) to 71,000 MTPA. Eyeing intense competition from Chinese and Taiwanese products in the overseas aftermarket, Brakes India is focusing solely on international OEMs and high quality conscious customers. On a selective basis, BIL has tied-up with group company, Sundram Clayton to manufacture anti-lock braking systems (ABS) and anti-spin regulation (ASR) for light commercial vehicles. Investments In 2007, BIL commissioned a greenfield brake assembling facility at Uttaranchal for supplying to Tata Motors and Mahindra.
130
Contracts In May 2006, BIL announced orders worth 9m for its foundry division from Bosch for fuel injection components. Also in May 2006, BIL announced orders worth 4m for its foundry division from Volvo Powertrain for engine components. In October 2002, BIL began supplies of disc brake system to TVS's Fiero Classic motorcycle. BIL has the contract to supply 50,000 brake assemblies per annum to the Maruti Swift program. 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.
Financial Overview
In the financial year ended 31March 2007, the company's sales was reported at INR 5bn (79.4m, 31 March 2007). BIL is a private company and not under obligation to publish its detailed financial results.
Outlook Brakes India is leverages its existing OE relationships for new business in its brakes division. To this end, BILs 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. For its foundry division, BIL is bidding aggressively for export orders originating in Europe as local European foundries are losing cost competitiveness. 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.
131
Caparo Maruti
Sheet metal components
Address
Caparo Maruti Ltd Plot 7, Maruti JV Complex, Delhi- Gurgaon Road, 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.
The company was formed in 1994 as a joint-venture between the Caparo group (UK) and Maruti Udyog. It operates one of the most advanced stamping facilities within the Maruti associate vendor group. Its customers include Maruti Suzuki, General Motors, Tata Motors, Honda Motorcycle, Scooter India and Hero Honda.
Tel: +91 124 5016 825-828 Fax: +91 124 5016 829 Internet: http://www.caparomaruti.com Senior Officers
Lord Swaraj Paul, Chairman AK Asthana, Managing Director Madhu Bhalla, General Manager
Recent Developments
Corporate strategy In recent years Caparo has expanded its customer base beyond Maruti, established new product lines and opened more assembly operations to serve new clients. This strategy is aimed at widening its customer base beyond Maruti and diversifying into new component areas. At the same time, Caparo has maintained its share of business from Maruti and has progressively been awarded supply contracts for new programs. Caparo Group has successfully added Tata Motors as a key client by securing a sole supplier contract for a commercial vehicle chassis. 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. Investments In February 2006, Caparo announced investments worth INR3.25bn (61.8m, 28 February 2006) to set up four facilities in Chennai. The investments include a manufacturing facility for metal automotive components, an aluminium foundry and a research centre for tool manufacturing and a steel forging unit. In February 2005, Caparo announced investments of INR3bn (51m, 28 February 2005)-4bn (69m, 28 February 2005) to establish four automotive manufacturing plants in India. The four plants were set up in Uttar Pradesh (Greater Noida), Madhya Pradesh (Indore), Rajasthan (Chipanki) and Haryana (Bawal) to manufacture fasteners for the automotive and commercial vehicle industries. In 2004, the Bawal (Haryana) based plant was inaugurated to primarily supply sheet metal components for the Maruti Suzuki Swift model. The new plant also supplies Hero Honda, Tata Motors, JCB and other two-wheeler manufacturers. Joint ventures In April 2008, Caparo formed a joint-venture with Hyundai Motors to assemble and market (CKD) luxury buses in India. Contracts Caparo Maruti supplies Maruti and GM through its Gurgaon and Halol facilities respectively. It supplies door, bonnet and tailgate assemblies for the Chevrolet Tavera. Sister concern Caparo engineering supplies skin and inner panels to Eicher for its HCVs and LCVs, besides it also undertakes hemming and welding processes for door panels from its Indore (Madhya Pradesh, India) plant. Moreover Caparo engineering has been awarded a contract for supplying close to 100 medium and small-sized sheet metal components by GM India. Certification Caparo Marutis facility is ISO 14001:1996 certified.
Products
Chassis, cowl upper assemblies, dash, door assemblies, quarter inner assemblies, sheet metal components
Plants
Gujarat, Haryana (3), Madhya Pradesh, Rajasthan, Uttar Pradesh
Sales
Caparo Maruti : INR 1.9bn (32.74m, 31 December 2007) (Year to 31.12.07)
Employees
Group: c. 4,500 (2008) Caparo Maruti: c. 750 (2008)
132
Infrastructure Caparo Marutis 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 2.5x1.8m; a hemming shop consisting of three hemming presses with a battery of spot welding jigs, guns & MIG brazing, a die spot press of 10 ton hydraulic die spotting press with a bed size of 4.0x2.5m, a weld shop with projection welding stations, draw-arc welding stations and spot welding stations. Additionally the company has a quality lab with an Ericsson cupping tester, profile projector, universal testing machine, romer make 3D portable measuring machine capable of measuring with-in a sphere of 3.6m. Caparo Maruti also has a CAD modelling shop equipped with Pro-E 2001, Hyperform V6.0 with LS-Dyna.
Financial Overview
In the financial year ended 31 December 2007, sales of Caparo Maruti were estimated at INR1.9bn (32.74m, 31 December 2007). The company is privately held hence is under no obligation to publish its financial statements.
Outlook
Caparos 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. While Caparos sole supply contract for commercial vehicle chassis with Tata Motors has given the company a significant headway in strategic presence, Tatas production cuts following the demand slump have created intense margin pressures for the company. 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.
133
CEAT
Tyres, tubes and flaps
Address
RPG Enterprises, Ceat Mahal, 463 Dr. Annie Besant Road, Worli, Mumbai 400 025, India
CEAT is one of India's largest manufacturers of tyres. The company has a strong presence in India and abroad with exports reaching 110 countries worldwide. Two-wheeler tyres account for 47% of the company's production at present.
CEAT Limited was established as CEAT (Cavi Electrici Affini Torino) International. The company entered India in 1958 in a partnership with the Tata Group. Subsequently the company was taken over by the RPG group in 1982 and was further rechristened as CEAT Limited in 1990. The company has been exporting since 1964. Globally, the CEAT brand is owned by Pirelli except in India where it is owned by the RPG Group. At present CEAT Limited enjoys a 14% market share in tyre exports made from India. CEAT has a 64% market share in Singapore, 22% in UAE, and 22% market share in Philippines. USA, Pakistan, Bangladesh, Vietnam, Iran, Nigeria, Egypt are some of the destinations where CEAT tyres are sold. In the domestic market CEAT enjoys a 55% share in the light truck tyres segment. Scooter and two-wheeler tyres are the most prominent sectors in which CEAT operates, accounting for 47% of its total production, followed by truck and bus tyres (20%), passenger cars (16%) and the balance is held by industrial and off-road tyres. CEAT India has retail chain of about 3,000 dealerships and exclusive outlets branded 'CEAT Shop'. Formula1, Secura, Maestro and Stamina are some of CEAT's popular brands. In the nineties, CEAT had established a 50:50 jointventure with Goodyear under the name of, South Asia Tyres (SAT) to concentrate on radial tyre production but ended up buying out CEAT's holding in SAT due to managerial differences. CEAT supplies tyres to OEMs like Ashok Leyland, Bajaj Auto, BEML, Caterpillar, Eicher Motors, Force Motors, Hero Honda, HMSI, HMT, JCB, L&T, Maruti Udyog, Mahindra & Mahindra, Piaggio, Scooters India, Swaraj Mazda, TAFE, Tata Motors, TELCON and TVS.
Tel: +91 22 24930621 Fax: +91 22 24974710 Internet: http://www.ceatyres.com Senior Officers
RP Goenka, Chairman HV Goenka, Vice Chairman Paras K Chowdhary, Managing Director G Chandrasekharan, CEO K J Rao, CFO
Products
Conventional truck tyres, four-wheeler passenger car tyres, industrial and OTR tyres, LCV tyres, radial truck tyres, threewheeler tyres, tractor tyres, two-wheeler tyres
Plants
Mumbai (1), Nashik (1)
Sales
INR21.35bn (368.68m, 31 March 2007)
Employees
c. 5,215 (Year to 31.03.08)
Recent Developments
Corporate strategy CEAT has been trying to push up the market share of its premium products to mitigate the rising input costs. The company is building its core strategy around the creation of speciality products for niche segments and taking them to global scale. To this end CEAT has sub-contracted production of low value added tubes, slabs, two wheeler and three wheeler 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. At the moment CEAT imports passenger car radials and commercial vehicle radials. 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. CEAT is also planning a facility for speciality tyres. In 2007, CEAT expanded its global sales network to 110 countries. The company now has a sales presence in South America, North America, Europe, Middle East and Africa. 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.
134
Presently CEAT India sources some of its raw material requirements from China. 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. Acquisitions In 1998, CEAT India acquired Rado Tyres (Kerela, India). The acquisition added to CEATs two-wheeler strength with increased volumes. Divestments In 2007, 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. The restructuring is expected to be completed by December 2007. Joint-ventures CEAT Kelani was formed in 1993 as a joint-venture between Kelani, Sri Lanka and CEAT India. The company manufactures tyres for the industrial, commercial vehicle segment. Investments In June 2007, CEAT Kelani commissioned a radial tyre facility to cater to the Sri Lankan market. In 2004-05, CEAT-Kelani added a new dual extruder line to its facility. Contracts CEAT supplies tyres to OEMs like Ashok Leyland, Bajaj Auto, BEML, Caterpillar, Eicher Motors, Force Motors, Hero Honda, HMSI, HMT, JCB, L&T, Maruti Udyog, Mahindra & Mahindra, Piaggio, Scooters India, Swaraj Mazda, TAFE, Tata Motors, TELCON and TVS.
Financial Overview
In the financial year ended 31 March 2008, CEAT India reported 8.80% growth in sales to INR23.23bn (368.89m, 31 March 2007) against INR21.35bn (368.68m, 31 March 2007) in corresponding period last year. The company's operating profit increased by 86.18% to INR2.83bn (45.61m, 31 March 2008) in financial year 2008 as compared to INR1.52bn (26.32m, 31 March 2007) in previous financial year. CEAT India reported pre-tax profit of INR1,970m (31.33m, 31 March 2008) as against a profit of INR609.2m (10.52m, 31 March 2007) it incurred in 2007, an increase of 223.37%. Net profit reported increase of 279% to INR1,490m (23.6m, 31 March 2008) as compared to net profit of INR392.5m (6.78m, 31 March 2007) in 2007. Improvements in profits were attributable to scaling down of existing inefficient production setup, increased sub-contracting of low value added tyres and allied products; and an increase in demand for high value truck and bus radials and passenger car tyres.
Year
Net sales, INR bn

23.23 21.35 17.47 15.28 14.01
Operating profit, INR bn

2.83 1.52 0.91 0.79 1.41

1,970 609.2 49.7 -77.2 428.4
Net Profit, INR m

1,490 392.5 3.7 -18.7 140.6
2008 2007 2006 2005 2004
Year
Net sales, m
368.89 368.68 325.37 270.45 261.68
Operating profit, m
45.61 26.32 16.91 13.90 26.40

31.33 10.52 0.93 -1.37 8.00
Net Profit, m
23.60 6.78 0.07 -0.33 2.63
2008 2007 2006 2005 2004
135
Outlook
CEAT has lost its leadership position in the Indian tyre market in terms of volume. It is now the fourth largest player in the market. While, 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. CEAT has made significant gains in the Sri Lankan tyre market where it has emerged as a major player. The companys move towards establishing sales operations across the globe are a move towards its strategy of developing products for the global market.
136
Ceekay Daikin
Clutch disc assemblies and clutch cover assemblies
Address
Ceekay Daikin Limited NMK International House 4th Floor, 178- Babubhai M Chinai Marg Mumbai 400 200 Maharashtra India
Ceekay Daikin is a leading supplier of clutch sets and allied components for passenger cars, light commercial vehicles, medium commercial vehicles and three wheelers in India. The company commands a 27% market share in OE supplies and has a significant presence in the Indian aftermarket.
Ceekay Daikin was incorporated in 1973 and commenced production in 1977 after Exedy Corporation (Daikin) became a collaborator and an equity partner with a 32.12% holding. Ceekay Daikin has one facility each in Aurangabad (Maharashtra, India) and Noida (Uttar Pradesh, India). The Aurangabad facility manufactures 1m clutch disc assemblies per annum and 0.6m units of clutch cover assemblies per annum. The Aurangabad plant has a work force of 353 people while the Noida unit is supported by 104 employees, which acts as an assembling unit for shipment to clients in the Northern cluster. Maruti Udyog is the largest customer of Ceekay Daikin, with its supplies being used for all the models in the Maruti Suzuki stable. Ceekay Daikin supplies to Bajaj Auto,Force Motors, Eicher Tractors, GM India, HM, Honda Siel, Lombardini, Punjab Tractors, Swaraj Mazda, Tata Motors, Toyota Kirloskar, VST Tillers Tractors, Swaraj Mazda and Eicher Motors.
Tel: + 91 22 2202 0849/ 8526 Fax: + 91 22 2204 3939 Internet: http://www.ceekay-daikin.com Senior Officers
Mahesh B Kothari, Chairman & Managing Director Pradeep B Chinai, Managing Director Akira Hirai, Managing Director Saurabh Kothari, Executive Director
Products
Clutch components, clutch cover assembly, clutch disc assembly, clutch kits
Recent Developments Plants

Maharashtra , Uttar Pradesh Corporate strategy In view of the increasing demand from automotive customers in India, Ceekay Daikin is expanding its production facilities and upgrading its infrastructure. Ceekay Daikin had earlier decided against increasing production capacity, expecting the demand to subside. At the moment Ceekay Daikin realises 3% of its revenues from exports. The company aims to increase this to 15% by 2010. Ceekay Daikin is improving its sales by focusing on OEM supplies for new orders. The company has identified niches in the tractor segment where it is a small player and two wheeler (motorcycle) segments for fresh orders. The company eyes a 20% growth in sales in 2009 and plans to increase its presence in the aftermarket. Ceekay Daikin has started sourcing non-critical press and machining supplies from vendors to reign in input costs. The cost cutting exercise has been mooted to tackle the rising steel prices. Investments In March 2007, 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 is investing INR 240m ( 4.14m, 31 March 2007) for the 1m unit per annum facility which is scheduled to commence supplies towards end 2008. In 2006, Ceekay Daikin announced plans of a INR 200m ( 3.72m, 31 March 2006) expansion of its Noida and Aurangabad facilities. Contracts In 2005, Ceekay Daikin commenced supply of clutch sets to the Toyota Innova program. The company shipped around 50,000 sets to Toyota Kirloskar in the first year.
Sales
INR 1.05bn ( 15.95m, 31 March 2008)
Employees
c. 460 (31 March 2008)
137
In 2004, GM India began sourcing clutch sets for Chevrolet Tavera. Of the 2000 sets Ceekay Daikin supplies to GM India for the Tavera every month. In 2004-05, Ceekay Daikin won the supply contract for clutch sets to the Honda Civic program. In 2005, Ceekay Daikin commenced supply of clutch sets to Mahindra and Mahindra with volumes of 3,500 sets per month. The supplies are used for all M&M programs except the Scorpio. Ceekay Daikin supplies to all programs in the Maruti Suzuki stable. The company also caters to Bajaj Auto for its three-wheeler products. Ceekay Daikin supplies to the Honda Accord program. The company also supplies to Champion three wheelers. The company also supplies to LCV programs run by Tata Motors, Eicher Motors and Swaraj Mazda. Ceekat Daikin supplies to Lombardini India for the Piaggio three wheeler set up.
Certifications Both facilities run by Ceekay Daikin are accredited with TS 16949 status. The Uttar Pradesh facility also has ISO 14001 and OHSAS 18001 accreditation.
Financial Overview During the financial year ended 31 March 2008, Ceekay Daikin generated sales worth INR 1.05bn ( 15.95m, 31 March 2008) compared to sales worth INR 898.34m ( 15.51m, 31 March 2007) in 2007, a growth of 11.3%. Profit Before Tax decreased by 19.7% to reach a figure of INR 115.36m (1.83m, 31 March 2008). Net Profit for the fiscal 2008 was at INR 26.68m ( 0.42m, 31 March 2008) compared to a figure of INR 39.68m ( 0.69m, 31 March 2007) in 2007.
Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR m 1004.66 898.34 863.54 816.33 780.12 Net sales, m 15.95 15.51 16.08 14.45 14.57 Operating Profit, INR m 115.36 120.5 134.18 101.43 86.54 Operating Profit, m 1.83 2.08 2.50 1.80 1.62 Profit Before Tax, INR m 37.2 46.33 58.74 26.14 8.12 Profit Before Tax, m 0.59 0.80 1.09 0.46 0.15 Net Profit, INR m 26.68 39.68 52.42 24.25 7.5 Net Profit, m 0.42 0.69 0.98 0.43 0.14
Outlook While outsourcing of non-critical operations has helped Ceekay-Daikin improve its profitability, the company has seen a drop in market share with aggressive competition from domestic clutch suppliers. Ceekay Daikin continues to be burdened by high cost of capital borrowing and interest payments. The companys export foray is in a nascent stage at the moment. The entry of Nissan could bring additional business for Ceekay Daikin due to Exedy Corporations relationship with Nissan in Japan.
138
Clutch Auto
Clutches and clutch components
Address
Clutch Auto Limited,
2E/14, First Floor, Jhandewalan Extension, New Delhi 110055, India
Clutch Auto is India's largest clutch manufacturer and exporter, with an annual production of more than two millon units. Clutch Auto exports its products to 40 countries across the world.
In the financial year 2007, the company accounted for 45% of sales from clutch sales for Heavy duty trucks/ LCVs, 30% from tractors and 25% from passenger cars. The company exports to Australia, Canada, Chile, Egypt, Indonesia, Iran, Italy, Malaysia, Mexico, Pakistan, South Africa, Singapore, Sri Lanka, UAE, UK, USA and Venezuela. Its customers include Ashok Leyland-IVECO, Bajaj Auto, Eicher, Escorts, Greaves & BEML, JCBL, Mahindra & Mahindra, Maruti Udyog, New Holland, Punjab Tractors, Sonalika-International Tractors and TAFE-Massey Ferguson.
Tel: +91 11 23670501 Fax: +91 11 23670501 Internet: http://www.clutchauto.com Senior Officers
KS Bhatnagar, Chairman Vijay Kishan Mehta, Vice Chairman & Managing Director
Products
Angle spring clutches, cerametallic wet and dry clutches, clutch plates and friction discs, clutch discs, diaphragm and coil spring clutches, dual clutches, hubs, lever, pressure plates, rollers, springs & yokes.
Recent Developments
Corporate Strategy Having gained a foothold in the North American commercial vehicle aftermarket, Clutch Auto is now focusing on expanding its product portfolio. The company is focusing on passenger cars, especially in the domestic market to spur demand. To this end, the company has received approvals from Tata Motors and Mahindra for supplies to most of their platforms. Clutch Auto has also received an approval from International Truck and Engine Corporation (ITEC) appointing the company as a supplier to ITECs commercial vehicle programs in NAFTA. Under the terms of the agreement Clutch Auto will supply patented products to ITEC. In 2005, Clutch Auto had acquired the clutch business of Pioneer Automotive Products in the USA to enter into the North American market, where it continues to focus on the heavy-duty clutch segment. The company is using Pioneer's distribution facilities and commercial warehouses in USA. This acquisition is helping Clutch Auto get foothold in the automotive world that encompass SUVs, Passenger car and light trucks as well as the agricultural segments including tractors. The company has developed clutches for Class 7 and Class 8 trucks in the region. 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. Clutch Auto has growth projections at a CAGR of 45% up to 2010 which will primarily be met by export growth. Currently exports account for nearly 28% of the sales. Clutch Auto aims to derive close to half of its sales from exports by 2010. The company is developing a new range of clutches, which it proposes to market as a retrofit arrangement for existing fleets. 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. 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. The new joint-venture is expected to be signed by the end of April 2009. Acquisitions In 2005, Clutch Auto acquired the clutch division of US based Pioneer Automotive Products for an undisclosed amount. Products of the joint-venture
Plants
Haryana
Sales
Employees
c. 950 (2008)
139
company will be sold funder name of "Pioneer Clutch Inc." Investments In 2005, Clutch Auto opened "Pioneer Clutch" distribution facility in Meridien (USA) to enhance service to Pioneer customers. Contracts In August 2005, Clutch Auto won a contract worth US$60m from US-based Fleet Pride to supply clutches for class 7 and 8 trucks. Clutch Auto has signed four long-term arrangements with Ashok Leyland. Additionally the company has inked an IPR confidentiality agreement with Ashok Leyland for a joint research program. The company supplies clutches to the Maruti Suzuki 800 and Omni programs.

Clutch Auto has indigenously developed its line of clutches. The company has an inhouse research and development centre. The company is lining up six new trademarks and about fifteen new patents. The company has already been allotted some patents by the USPTO. Clutch wear adjustment indicator: is a device to automatically indicate when the clutch needs wear adjustment. 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, 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. The company has applied for a patent for the product. 14" Flat flywheel cast cover clutch: is a replacement for the stamped steel cover clutch. The product is a cast cover with ventilation louvers which assists in keeping the clutch cool. A release sleeve retainer ensures alignment and concentric movement vis--vis release sleeve assembly results in lower clutch wear. The product can be used for Class 6 & 7 trucks & buses. Pre damp high torque disc- PDHT - is a replacement for VCT-soft rate dampers and LTD clutch discs. The product is meant for contemporary trucks with higher torque capacity, which broadly includes 90% of the truck production. Engine cycles of low RPM engines are close to natural frequency of the power train, 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. PDHT Disc absorbs engine cycles and torsional vibrations of the engine up to 4 twist angle.
Certifications Clutch Auto has been accredited with QS 9000 and TS 16949 status.
Financial Overview
In the financial year ended 31 March 2007, net sales of Clutch Auto were INR 2.17bn (34.44m, 31 March 2008). In the period, profit before tax was reported at INR168.61m (2.68m, 31 March 2008) and net profit at INR 154.54m (2.54m, 31 March 2008). Year 2008 2007 2006 2005 2004 Year 2008 Net sales, INR m 2,168.76 2,355.02 1,493.16 927.46 730.62 Net sales, m 34.44 Operating Profit, INR m 340.89 403.27 237.75 171.83 104.89 Operating Profit, m 5.41 Profit Before Tax, INR m 168.61 256.98 130.64 75.32 4.41 Profit Before Tax, m 2.68 Net Profit, INR m 154.54 215.22 126.64 60.32 -2.32 Net Profit, m 2.45
140
2007 2006 2005 2004
40.67 27.80 16.42 13.65
6.96 4.43 3.04 1.96
4.44 2.43 1.33 0.08
3.72 2.36 1.07 -0.04
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. Clutch Auto has aimed to reach sales of INR6.25bn (99.25m, 31 March 2008) and profits of INR 500m ( 7.94m, 31 March 2008) by 2010 at a CAGR of 45%. 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. Clutch Auto is also focusing on expansion, diversification and exports plans with new product developments for the next two-three years.
141
Continental Engines
Aluminium precision engine components
Address
Continental Engines Ltd, Global Business Park, Tower-D, 3rd Floor, Mehrauli - Gurgaon Road, Gurgaon 122 002, Haryana
Continental Engines is a supplier of intricate aluminium cast components for automotive applications. The company exports around 90% of its production.
Continental Engines Limited (CEL) was established in 1983 as a manufacturer of castings. In 1991, CEL set up a machine shop to convert castings into finished products that could be directly fitted in the vehicles. In 1995, the company decided to shift its focus towards the export market. It took the company a long time to establish itself in the export market. The breakthrough came in 2001, when it won large orders from OEMs in Iran. Currently it operates from two plants based in Bhiwadi (Rajasthan) supplying engine parts for a wide range of applications including passenger cars, off-road vehicles, light and heavy commercial vehicles, tractors, marine engines, stationery engines and railways. CEL has a production capacity of 350,000 cylinder heads a year and a 500 MT of castings. Further, the company runs a business process outsourcing (BPO) automotive vertical, which works with automotive companies and does their back office processing and market promotion work. The company has recently acquired Intermotor B.V., to enter the business of engine remanufacturing. CEL's domestic customers include Ashok Leyland, Eicher Motors, Eicher Engines, Elgi Equipments, Greaves Cotton, Hindustan Motors, Kenmore Vikas India, Kinetic, Lombardini, Mahindra & Mahindra, Sona Koyo and Swaraj Mazda. CEL's international customers include Duetz (Germany), Iran Khodro (Iran), Mega Motors (Iran), Piaggio (Italy) and VM Motori (Italy).
Tel: + 91 124-4107050 Fax: + 91 124-4107065 Internet:

http://www.baxy.com/home.htm
Senior Officers
Amarjit Bakshi, Managing Director Alok Dutta, CEO Mahesh Dadlani, Vice president, Sales & Exports Rajiv Mittal, Vice President, Production
Products
Cylinder head, crank case, transfer case, clutch housing, inlet manifold, remanufactured engines
Recent Developments
Corporate strategy CELs acquisition of Veges European operations and the subsequent launch of the brands products in India has helped the company integrate its capabilities in the domestic and export markets. CELs strategy of partly shifting higher cost component manufacturing operations of Vege to India has helped the company in improving Veges earnings. CEL has also benefitted from its supply association with V.M. Motori as the company is increasingly pitching for similar business with other Europe based suppliers. Investments In 2005, CEL announced plans of establishing an assembling unit for new engines at Bhiwadi (Rajasthan) at an investment of about INR45m (0.83m, 31 October 2005). The assembly plant has a capacity of 15,000 units per month. Acquisitions In September 2005, CEL acquired the entire equity stake in Intermotor B.V., the financially-troubled subsidiary of Vege, and entered engine remanufacturing business in Europe. Joint ventures In October 2005, CEL signed a technical license agreement with VM Motori (Italy) to manufacture modular one- and two-cylinder engines in India. 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 has setup a new plant for this purpose in Uttaranchal. The engines are
Plants
Rajasthan (2)
Sales
Employees
c. 1,000 (31 March 2008)
142
intended for two- or three-wheelers and power generator applications. Contracts CEL has the contract to supply cylinder heads to Peugeot, Nissan and Kia for specific markets. Certifications CEL is a TS 16949 certified company and is in the process of getting ISO 14001 and ASHAS certifications.
Financial Overview
In the financial year ended 31 March 2008, CEL generated estimated sales of INR 3.4bn (53.72m, 31 March 2008). CEL is privately held and does not publish its financial statements.
Outlook
In the last five years, CEL has grown at CAGR of 75%. This is largely attributed to the companys acquisition of Vege and its arrangement with VM Motori. Continental is largely dependent on exports for its revenues while its domestic sales initiatives have had a lukewarm response.
143
DCM Engineering
Automotive castings
Address
DCM Engineering Limited Post Box No. 5, Ropar (Asron) 140 001 Punjab, India
DCM Engineering Products, a unit of DCM Engineering, is a leading supplier of automotive castings. With a capacity of 50,000 MT per year, DCM is amongst the largest jobbing foundries in India.
DCM Engineering Products (DCM) was established in 1977 as part of DCM group's engineering division, which was later spun-off into an independent company. DCM's grey iron foundry is located near Ropar (Punjab) with a production capacity of 50,000 tons per annum. The foundry manufactures cylinder heads, cylinder blocks and housings for the passenger car, commercial vehicle, utility vehicle and tractor sectors. DCM's domestic customers are Ashok Leyland, Eicher Motors, Escorts, Force Motors, Hindustan Motors, Hyundai Motor India, International Tractors, Mahindra & Mahindra, Maruti Udyog, Punjab Tractors, Swaraj Engines, Swaraj Mazda, Simpson & Co, and Tata Cummins. Its international customers include Hepworth Heating Systems (UK), Perodua (Malaysia), SRC, Uniboring, GE Transportation (USA), and GM DAT (Korea).
Tel: +91 1881 501 801 Fax: +91 1881 270 807 Internet: http://www.dcmengg.com Senior Officers
Dr Vinay Bharat Ram, Executive Chairman Sumant Bharat Ram, Vice Chairman Keshav Sachdev, Managing Director Rakesh Dhamani, CFO Devinder Singh Sodhi, VP, TQM Rajender Kumar Chopra, GM, Technical Development
Recent Developments
Corporate strategy In recent years, DCM has announced plans to increase casting capacity to 1,00,000 tonnes but no developments have been made. On its existing capacity, the company has implemented several productivity enhancement tools. Now DCM aspires to win the Deming Application Prize in 2009. The company expects exports to account for 25-30% of its total sales by 2012. Investments In 2007, DCM installed automatic core making systems at an investment of INR200m (3.78m, 30 September 2007). In 2005, DCM implemented SAP/ERP software at an additional investment of INR15m (276,600, 31 October 2005) as part of modernisation and streamlining of its foundry operations. Contracts In March 2006, DCM won an order worth US$0.315m (0.26m, 31 March 2006) from General Motors, to develop a V8 cylinder block called Bowtie. The cylinder block is for a sports car model being developed by General Motors. DCM supplies cylinder blocks and heads to Ashok Leyland, Eicher, Force Motors, Hindustan Motors, Hyundai Motors India, Mahindra & Mahindra, Maruti Udyog and Swaraj Mazda. Company supplies housings to commercial vehicles customers including Ashok Leyland, Eicher, Force Motors, Mahindra & Mahindra and Swaraj Mazda Certifications DCM is accredited with QS9000 certification and is currently implementing TQM.
Products
Cylinder blocks, cylinder heads and housings
Plants
Punjab
Sales
Employees
c. 1,700 (2008)
Financial Overview
In the financial year ended 31 March 2008, DCM generated sales estimated at INR3.4bn (53.7m, 31 March 2008).
Outlook
While DCM Engineering has been expanding its plant in North India its plans of
144
expanding to Southern India have not made a significant headway. Partial relocation of production capacity would help DCM in improving its prospects with OEMs based in the southern region. Further, the southern region would provide a better location for exports with close proximity to ports.
145
Delphi
Electronics, chassis, thermal and engine systems
Address
Delphi Automotive Systems Pvt Ltd, Technical Centre India, 5th Floor, Innovator Building, International Tech Park, Whitefield Road, Bangalore 560066 India
Delphi Automotive Systems is a wholly owned Indian arm of the Delphi. Delphi India complements Delphi's strong manufacturing network in the Asian Pacific region.
Delphi is present in India as a wholly-owned subsidiary since 1995. The company provides automotive solutions in the field of electrical distribution systems, fuel handling systems, exhaust systems, engine management systems, air-conditioning systems and suspension systems. Delphi supplies all three mainstream automotive segments including two-wheeler, four-wheeler and commercial vehicles. Delphi consumer electronics are sold in the aftermarket through Delphi Product & Service Solutions, which supplies Audio Multimedia Electronics to OEM vehicles exported out of India. The company started aftermarket operations in 2000 offering suspension, drive train, climate control and radiators. The company has been active on the exports front. Its export portfolio includes: gas charged shock absorbers, air-lift dampers, struts, drive shafts and drive shaft components, half shafts, steering columns and wiring harnesses. Delphi's Indian customers comprise Maruti Udyog, General Motors India, Fiat, Hindustan Motors, Volvo and Tata Motors.
Tel: +91 80 2841 2015 Fax: +91 80 2841 0799 Internet: http://www.delphi.com Senior Officers
Prashant Shah, Vice President, Sales & marketing K Prabhakar, Vice President, Operations
Products
Brazed aluminium heat exchangers, catalytic converter systems, compressors, consumer electronics, electrical/electronic architecture, electrical/ electronic distribution systems, front corner modules, electronic and safety systems, engine management systems, evaporative emissions canisters, front corner modules, half shafts, HVAC module & compressors, oil filters, radiators, shock absorbers and struts, steering columns, throttle bodies
Recent Developments
Corporate strategy In the recent years, Delphi India has generated most of its sales from chassis parts. With a view to expand its presence in the country, Dephi is now focusing on HVAC modules where it plans to triple its sales. With a strong domestic demand, Delphi targets US$500m (374.99m, 31 March 2007) worth of sales by 2010. The targeted sales figures are inclusive of revenues generated through supply of components to the domestic OEMs, exports and aftermarket sales. Exports are a key area for companys growth. Leveraging India's low cost of manufacturing and engineering capability, Delphi plans to grow its export and outsourced R&D work. Hence, Delphi has established a Technical Centre which has emerged as Delphi's largest technical centre outside the US. Delphi has been increasing its presence in the Indian after market with the launch of its high end car audio and entertainment systems. Earlier, Delphi had launched shock absorbers, struts and half shafts in the domestic aftermarket. Joint-ventures In December 2006, Bosal Delphi announced its entry into the Indian exhaust systems market with Delphis Gurgaon plant as its first production unit. Bosal Delphi supplies the passenger car OEMs in India. Delphi has entered into collaboration with the TVS Group for diesel injection systems. Delphi TVS operates a manufacturing facility in Mannur (near Chennai, Tamil Nadu). In July 2005, 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. A facility was set up in Pune (Maharashtra) with manufacturing support from Delphi and commenced production in the last quarter of 2006. Varroc Exhaust System has orders from Bajaj Auto and potentially from other OEMs including Honda Motorcycle & Scooter India, Suzuki and Yamaha. This alliance will establish a footprint in India for catalytic converter production.
Plants
India:Karnataka , Haryana (2), Uttar Pradesh Joint Venture: Tamil Nadu , Uttaranchal
Sales
INR8.0bn (127.04m, 31 March 2008)
Employees
c. 1,900 (2008)
146
Investments In 2004, Delphi estimated its total investment in India at INR3.9bn (1.51m, 31 December 2004).
Contracts Delphi supplies CRDi system to Tata Motors for the Safari Dicor model. The company won a contract from Maruti to supply suspension systems, air conditioning and steering columns for the Swift model. Certifications Delphi India was certified with ISO 9002 certification in 1998.
New Product Developments Delphi's Technical Center develops embedded software for Delphi's diesel common rail engine management systems and advanced mobile multimedia systems. The centre supports development programs on gasoline powertrain, steering and braking control systems and has expanded its scope into product engineering. Further, design and engineering activities for fuelhandling systems and engine management systems are carried out. Delphi has lately been working on the development of web-based tools to automate engineering and business processes at Delphi Delco, Delphi's mobile electronics division. Financial Overview In the financial year ended 31 March 2008, Delphi India recorded sales worth INR8.0bn (127.04m, 31 March 2008) registering an estimated sales growth of 11% over 2007. Delphi India is wholly-owned by Delphi (USA) hence does not report its financial statements separately. Outlook Delphi is focusing on development of its business with Asian OEMs. Its
contracts with Tata Motors, Mahindra and Maruti bear testimony to its focus. Delphi's common rail system is equipped on various Indian models. These contracts are expected to grow in number and bring increase in sales to Delphi. Research & Development of products and embedded software is a major thrust area for Delphi India. This initiative will earn Delphi India global value in terms of Delphi's network. Increased exports of components is another growth area for the company.
147
Delphi TVS
Pumps, injectors, filters
Address
Delphi TVS Limited AALIM Centre 2nd Floor, 82, Dr Radhakrishnan Salai Mylapore Chennai- 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.
Delphi-TVS was the first manufacturer to introduce Euro I, Euro II and Euro IIIcompliant rotary pumps in India. The company manufactures its products at a plant in Mannur (Tamil Nadu) which was initially set up by Lucas-TVS. Delphi-TVS supplies to Tata Motors, Fiat India, Hindustan Motors, Ford India, Hyundai Motors India, Mahindra & Mahindra and Maruti Udyog. The company also exports to Ford (UK), Perkins (UK) and Peugeot (France).
Tel: + 91 44 2811 0063/ 0074 Fax: + 91 44 2811 5624 Internet: http://www.delphitvs.com Senior Officers
JS Chopra, President TK Balaji, Managing Director Sudesh Sud, General Manager- Marketing
Recent Developments
Corporate strategy Delphi-TVS plans to leverage the growth in diesel fuelled passenger cars in the country. In 2005, it introduced common rail systems in the market and has already entered into supply agreements with various OEMs. Further, Delphi-TVS plans to diversify its operations into research and development by starting a technical centre that will focus on new products and applications. The company also plans to utilise its facility in India to supply components to the Asian markets. Investments In November 2006, 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 (6.79m, 30 November 2006). In February 2005, Delphi-TVS earmarked an investment of INR5bn (86.6m, 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. Further, a new technical centre at its existing facility in Mannur (Tamil Nadu) is planned at an investment of INR500m (8.66m, 28 February 2005), a part of INR5bn (86.6m, 28 February 2005) investment. The technical centre will be one of Delphi's 10 diesel application centres worldwide and will be equipped with a chassis dynamometer, cold room, common rail engine test bed and test rigs. The centre will be operational in mid 2006. Contracts Delphi-TVS has a contract with Tata Motors to supply rotary fuel-injection systems for the Tata Indica platform. The company supplies CRDi system for the Tata Safari Dicor program. The company supplies Ford in UK and Peugeot in France. In 2004, Delphi-TVS began supplies of rotary pumps to Perkins in UK. Certifications The company is certified with ISO/TS 16949 and ISQ 14000 status.
Products
Common pressure accumulator (rail), DCR components, DP200, DPC rotary fuel injection pumps, DPCN pump, filters, injectors, STP/SVP fuel injection pumps, unit pump
Plants
Tamil Nadu (1)
Sales
INR3.2bn (59m, 31 December 2005)
Employees
c. 700
Financial Overview
In the financial year ended 31 December 2005, Delphi TVS recorded sales worth INR3.2bn (59m, 31 December 2005). Delphi-TVS is a non-listed company and does not publish detailed financial statements.
Outlook
Delphi-TVS has taken a substantial lead over its competitors by winning a diesel engine injection components contract from Tata Motors, India's largest diesel passenger car maker. The market share of diesel cars is increasing in India as price
148
of petrol rises and diesel technology has improved and become cheaper. Tata Motors is among the few to adopt diesel engines for small cars in a large way. 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.
149
Denso India
Electric motors, alternators and ECUs
Address
Denso India Limited, The Capital Court, 3rd floor, Left wing, Olof Palme Marg, Munirka, New Delhi 110067, India
Denso India is one of the largest suppliers of electric motors, alternators and ECU's in India. It is a critical supplier to Maruti and enjoys a third of Indian passenger car market share.
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. A plant was established in Noida (Uttar Pradesh, India) with an installed capacity of 0.15m alternators and starter motors and 0.1m wipers. In 1993, after undergoing a business downturn due to import restrictions which came into effect in 1992 to curb the devaluation of the Rupee, Maruti decided to acquire 10.27% stake in the company from SRF. The company was then renamed Nippon Denso India Ltd. In 1996, the company expanded its portfolio to include engine management system parts such as electronic fuel-injection systems, electronic control units, airflow meters, vacuum sensors, coolant temperature sensors, oxygen sensors, throttle bodies, fuel-injectors, fuel pumps, etc. In line with a global identity change Nippon Denso was renamed Denso India Ltd in 1996. Presently three major Japanese vendors hold stakes in the company. While Denso Corporation (Japan) holds 47.93% in the company, Sumitomo Corporation and Asmo Corporation hold 10.27% and 5% respectively. Denso's Indian operations is organised into: Denso India Ltd (52.9% owned by Denso): Manufacture and sale of electrical automotive components, electric fans, ventilators, magnetos and windshield wiper motors. Denso Haryana Pvt Ltd (100%): Manufacture and sale of fuel pumps, injectors, and engine ECUs. Denso Kirloskar Industries Pvt Ltd (89%): Manufacture and sale of radiators and air conditioners. Denso Sales India Pvt Ltd (100%): Sale of automotive components manufactured by sister concerns in India. Denso Faridabad Pvt Ltd (100%): Manufacture and sale of HVAC units and heaters. Denso India customers include Hero Honda, Hindustan Motors, Honda Motorcycles and Scooters, Honda-SIEL Cars India, Maruti Udyog, Tata Motors, Toyota Kirloskar Motors and Yamaha. Maruti accounts for 48% of Denso's sales, Toyota accounts for about 8% and Hero Honda, Yamaha and Honda Scooters collectively account for 23-25 % of the company's sales.
Hitoshi Hirahata, Managing DirectorDenso India Y Ishiguro, Deputy Managing Director H Ishida, Managing Director, Denso Sales Akio Omoto, Director- Denso India
Products
Alternators, CDI, ECUs, engine cooling fan, fan washer pump, flywheel, fuel gauges, fuel Pumps, magneto, starter motors, ventilator, wiper motors
Plants
Denso India Ltd: Noida Denso Haryana Pvt Ltd: Gurgaon Denso Kirloskar Industries: Bangalore
Sales
Employees
c. 900 (2008)
Recent Developments
Corporate strategy The entry of its biggest customer Toyota into India has resulted in a proportional growth for Denso, thereby reducing its dependence on Maruti. Exports are not a part of Denso India's business plan as Denso has country units spread throughout the globe. Denso India largely focuses on OEMs present in India. The company is pursuing cost control activities to offset the pressure on margins. The company is keen on adding more products to its list. Denso India believes new products shall help improve profitability. Denso India has grown its business with Maruti Suzuki's new facility in Gurgaon which commenced operations in 2006. The company is working towards further diversifying its client base. Joint-ventures Denso India derives its technical know-how from joint-venture
150
partner Denso Japan. The company entered into two major agreements with Denso Japan for additional technology transfer in the 90s. Investments The company completed an INR700m (16.71m, 31 March 2000) expansion plan in 2000.
Contracts Denso India supplies electric motors for every model in the Maruti Suzuki stable. The company supplies blower motors to Tata Motors. Denso Haryana supplies fuel gauges to Mark Auto and to other associate suppliers of Maruti. Denso Kirloskar supplies air conditioners to Honda-SIEL and Hindustan Motors for the Mitsubishi Lancer model.
Financial Overview Denso India reported sales of INR4.60bn (73.9m, 31 March 2008) in 2008, an increase of 9.5% compared to sales of INR4.2bn (72.71m, 31 March 2007) in 2007. The company registered an operating profit of INR557.3m (8.85m, 31 March 2008) in 2008, a decrease of 2.51% compared to INR571.7m (9.87m, 31 March 2007) in 2007. Net profit for the period was INR278m (4.41m, 31 March 2008), an increase of 0.5% over INR276.6m (4.78m, 31 March 2007) in 2007.
Year Net sales, INR bn 4.60 4.20 3.60 3.79 3.13 Net sales, m 73.90 72.71 67.22 67.10 58.47 Operating profit, INR m 557.3 571.7 476.2 416.60 382.90 Operating profit, m 8.85 9.87 8.87 7.38 7.15 Profit before tax, INR m 428.2 440.2 334.6 271.30 184.30 Profit before tax, m 6.80 7.60 6.23 4.80 3.44 Net Profit, INR m 278 276.6 209.7 163.40 112.90 Net Profit, m 4.41 4.78 3.90 2.89 2.11
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. Further, 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. Densos present product offerings in India are only a fraction of its global offerings. Incremental use of technology in Indian vehicles will lead to technology transfer to its Indian units.
151
Emcon Technologies
Exhaust systems
Address
Emcon Technologies India Pvt Ltd 17 & 18, Sengundram Industrial Area Melrosapuram S P Koil Post - 603 204 Kancheepuram District Tamil Nadu India
Emcon Technologies is a leading supplier of exhaust systems to the passenger cars sector in India.
Emcon Technologies was formed as a joint-venture between ArvinMeritor and Anand Group in 1997 for the production of exhaust muffler assemblies, catalytic converters, instrument panel reinforcement assemblies and door side impact beams. With global purchase of ArvinMeritors emission control business by One Equity Partners Inc, Arvin Exhaust has been rechristened Emcon Technologies in India, while operations of the company have been curtailed solely to emission control systems. One Equity Partners holds 74% in Emcon India while the balance is held by the Anand Group. Emcon Technologies is the sole supplier to Ford India and Toyota since their entry into India. The company also supplies to Bombardier, Canada and Emcon, UK. In 2007, Emcon India generated 25% of its revenues through international supplies. Emcon operates two manufacturing facilities, based in Bangalore and Chennai and supplies to its customers on a sequencing basis.
Tel: + 91 44 6740 4999 Fax: + 91 44 2746 4620 Internet: http://

www.anandgroupindia.com/arvin.html
Senior Officers
S Sarthi, Vice President & COO
Products
Catalytic converters, exhaust systems, exhaust pipes, muffler boxes
Recent Developments
Corporate strategy While Emcon Technologies present businesses in India have largely been won on a follow through source basis, the company is keen to tap domestic OEMs for higher volume vehicle programs. 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. Emcon has been exporting actively to European and North American customers; however its access to most markets is limited by Emcons existing network except in cases where the company internally decides to use India as a sourcing base. Primarily, Emcon India has been exporting pressed parts and allied components instead of completely assembled systems. While Emcon targets to generate 30% of its sales through exports, in the immediate term the share of domestic business is likely to increase with the onset of supplies to new contracts with higher volumes. As a long term objective, Emcon believes that domestic supplies would form its major revenue source in India. The entry of Nissan, Renault and VW is expected to bring fresh business for Emcon India. Emcon India eyes growth by expanding its product base to Diesel Particulate Filters and Selective Catalytic Reduction technologies in its present range. The company plans to enter the commercial vehicle segment which is largely unorganised in India. Emcon targets revenues worth INR1bn(17.27m, 31 March 2007) by 2009 and INR 2bn (34.54m, 31 March 2007) by 2012. Investments In 2007, Emcon India announced the setting-up of its engineering and development center in Bangalore at a capital cost of US$ 600,000. Contracts In 2007, Emcon India won supply orders for 50% requirement of the Tata small car program. Emcon is expected to setup a greenfield manufacturing facility close to the Singur assembly plant. The facility is expected to employ 60 associates and will handle complete assembly of the exhaust system. Emcon India supplies exhaust systems for the Ford Ikon program. Emcon India supplies exhaust systems for the Ford Fiesta program.
Plants
Chennai , Bangalore
Sales
INR 450m (7.77m, 31 March 2007)
Employees
105 (2007)
152
Emcon India supplies exhaust systems for the Ford Endeavour program. Emcon India supplies exhaust systems for the Toyota Innova program. Emcon India supplies exhaust systems for the Toyota Corolla program. Emcon India supplies muffler boxes to Emcon UK for the Land Rover Discovery program. Emcon India also supplies pressed components for catalytic converters tpto Emcon UK. Emcon supplies exhaust pipes to Bombardier, Canada.
Financial Overview In the financial year 2007, Emcon Technologies India generated sales worth INR 450m (7.77m, 31 March 2007). Emcon Technologies India is a privately owned and does not publish financial statements. Outlook Emcon India is expanding its client base in India with the objective of
garnering higher volume contracts. The company is working on key contracts which will make it a fore-runner in the emission control business in the country. Also, Indias acceptance of stricter emission norms adds to Emcons chances of winning business with its highly developed and accepted product mix. The entry of new OEMs in India will bring fresh business for Emcon on lines of its previous contracts with Toyota and Ford.
153
Endurance Systems
Clutch assemblies, die-cast components, disc brakes, shock absorbers and transmission systems
Address
Endurance Systems India Pvt. Ltd E-92, M.I.D.C. Industrial area Post box no. 982 Waluj, Aurangabad - 431 136 Maharashtra India
Endurance Group is a leading supplier of clutch assemblies, die-cast components, shock absorbers and transmissions. The group made its beginning in 1985 in Aurangabad with the flagship company Anurang Engineering, working on supply contracts from Bajaj Auto. Over the last two decades, the group has been able to diversify its customer base as well as its operations.
Recently, Endurance group has restructured its holding in various group companies. Anurang Engineering has been renamed Endurance Technologies and Endurance Transmission Systems was merged into the company. The newly formed holding company, Endurance Technologies now has Endurance Systems and High Technology Transmission Systems as its subsidiaries. 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. o Endurance Transmission Systems: produces hydraulic telescopic front forks, two-wheeler disc brake assemblies and low pressure / gravity die-cast components. Endurance Systems: manufactures two-wheeler and four-wheeler shock absorbers, McPherson Struts and Gas Springs High Technology Transmission Systems: was formed in 2001 for the production of clutch assemblies, friction plates and continuous variation transmissions (CVT).
Tel: +91 240 2564595 Fax: 91 240 2555423 Internet:

http://www.endurancesystems.com
Senior Officers
Anurag Jain, Managing Director SB Bedekar, CFO BM Dhasmana, President
Products
Aluminium die castings, clutches, CVT, disc brakes, front forks, friction plates, gravity die castings, high pressure die castings and shock absorbers
Plants
Aurangabad (8), Chennai (3), Manesar (1), Pantnagar (3), Pune (6) Germany (2), Italy (3)
Sales
INR 15bn (260m, 31 March 2007)
Employees
c. 2,500 (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. Endurance Groups European diecasting facilities are solely supplying to four wheeler OEs. Suspension products: At present the company supplies two-wheeler suspension products to OEs. Endurance additionally has a presence in the four wheeler aftermarket with its suspension products. Two wheeler transmission: This comprises continuous and variable transmission systems. Braking systems: Includes disc brake assemblies supplied to two wheeler OEs. Endurance additionally has a presence in the four wheeler aftermarket with its braking system products. Endurance group has 24 plants and employed 2500 people in 2007. The group has a wide customer base. Main customers of the group include Audi, Bajaj Auto, Brassano, BMW, Daimler Chrysler, Grimeca, Fiat India, Ford India, Honda Motorcycle & Scooter India, GM, Hyundai Motors India, ITEC, Iveco, John Deere, Kinetic Motors, LML, Lombardini, Mahindra & Mahindra, Mahle Killer System, MICO- Bosch, New Holland, Paioli S.p.A, Peugeot, Piaggio, Porsche, Renault, Royal Enfield, Suzuki Motors, Tata Motors and Tata Toyo.
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
154
to its resource pool. The group continues to that castings would be the major growth driver with brisk export potential. Endurance had been on the look-out for strategic alliances and acquisitions in the die casting space. Further its problem of dependence on Bajaj for revenues have been partly addressed with several four wheeler OEMs in its portfolio. In the die-casting business in particular, Endurance now has a major share of business being generated from four wheeler OEs. Endurance had earlier set a target of 60:40 mix between four wheeler and two wheeler OEs contribution to revenues of its die casting business. In the other operating segments however, Endurance continues to depend on Bajaj for a major proportion of its revenues. Outside the casting space, Endurance has picked a strategic stake in its technical alliance partner, Paioli Italy which makes suspension products. Endurance has firm plans of making a complete acquisition of the company in the near term. Endurance is presently supporting Paioli in Italy for its requirement of front forks. Aftermarket is an important revenue source for Endurance, especially in the two wheeler brakes and suspension systems. To this end, Endurance has made firm plans of targeting ASEAN and African aftermarket with its range of two wheeler and four wheeler suspension and brake products. Endurance has stated that it is targeting a global leadership position in castings by 2012; this would be reached through a mix of organic and inorganic growth. Endurance has managed to grow beyond the previously stated revenue target of INR 10bn (177m, 31 March 2005). The company is expecting to generate revenues worth INR 30bn (476m, 31 March 2008) in the present financial year, ending 31 March 2009 and a target of INR 50bn (794m, 31 March 2008) by 2010. Of the 2010 target, 64% is expected to come through organic growth and the balance would be coming through inorganic growth. The group expects to earn 43% of its revenues from overseas operations and exports in 2008. Endurance has setup a target of 15% exports from its current production in India. The company is now increasing its casting marketing activity in the US which were earlier largely restricted to Europe. Acquisitions Endurance has been focusing on profit making companies with a strong client base and technology for its inorganic plans. Endurance believes it can add value to such companies by supplying toolings and other materials from India to increase profitability. In February 2007, Endurance acquired Fondalmec S.p.A of Italy for an estimated 75m. The plant majorly supplies to Fiat, Renault, Peugeot and General Motors. 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 January 2007, Endurance acquired Nuova Renopress of Italy for a consideration of 23m. Nuova Renopress is a supplier to Siemens, Honda and Bosch with a turnover of 25m in 2006. In 2006, Endurance acquired 100% stake in Amann Druckguss of Germany for a consideration of 42m. Aman Druckguss is a preferred supplier of speciality castings to customers like, Daimler Chrysler, MAN, John Deere, Porsche and Behr with a turnover of 40m in 2006. In 2006, Endurance acquired 40% stake in the Italian front fork manufacturer Paioli Meccanica with whom it had inked a technical alliance in 1997. Paioli Meccanica is also a leading manufacturer of front forks in Europe. Endurance has an option to increase its stake to 100%. Divestment In 2007, Endurance Group divested 15% stake in the holding company, Endurance Technologies for a consideration of INR1.5bn (30m, 31 June 2007) in favour of Standard Chartered Private Equity Limited. The balance of the company is owned by the Jain family. Joint-ventures. In June 2008, Endurance announced a 50:50 joint venture with Magneti Marelli for manufacturing shock absorbers in India and Thailand. The
155
industrial facilities under the agreement are being created at Pune and Thailand. The company will be specifically focus on design, 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 has entered a technical alliance with Akebono Brake Industry Co., Japan for non-asbestos brakes for four wheeler application. In 2005, Endurance entered into a technical agreement with China based Wangfeng Auto, one of the worlds largest two wheeler alloy wheel manufacturers for the production of alloy wheels at Chakan (Maharashtra). Endurance plans started production at the new facility in March 2006. The plant manufactures more than 100,000 wheels per month. In 2006, Endurance commissioned an R&D facility with its Italian partner for two wheeler suspension applications. The facility was formed as a technical alliance and caters to European OEMs. The shock absorbers and front forks are sourced from Endurance run facilities in India. Endurance Systems has a technical collaboration with Paioli S.p.A. Italy for shock absorbers. Endurance Transmission Systems has a technical agreement with Paioli Meccanica s.p.a. Italy for front forks. Endurance Transmission Systems has a technical collaboration with Bassano Grimeca, Italy for disc brakes and aluminium die cast components. In 2003, High Technology Transmission Systems inked a joint-venture with Adler s.p.a. Italy for production of clutches. Adler holds 49% equity in the company while the balance is held by Endurance. Endurance also shares a technical alliance with Germany based, Al-Ko Kober Group for its foray into four-wheeler suspension.
Investments In 2007, Endurance commissioned a global sourcing office for its supply requirements and a marketing office in Detroit. In 2006-07, Endurance incurred expenses worth INR 2.25bn (40m, 31 March 2007) on plant openings in Uttaranchal, Pune and West Bengal. The group also acquired 70 acres of land at Chakan for an undisclosed sum. In 2006, Endurance announced the setting up of Endurance Far East Systems with a plant at Laemchambang in Thailands 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 (0.86m, 31 March 2007). The plant would be commissioned in September 2007. In 2006, Endurance commissioned its Aluminium die casting unit at Chennai. The company supplies to clients Hyundai Motors, Rane TRW among others. In 2006, Endurance commissioned five new units one each in Manesar (Haryana, India), Aurangabad (Maharashtra, India) and three in Chakan (Maharashtra, India) in fiscal 2006. Manesar based plant caters to the needs of OEMs and other customers in the Northern belt. The company has been supplying to HMSI in Manesar and Mico Boschs Jaipur based facility from the Manesar set up. In October 2006, Endurance commissioned its Chennai facility which supplies components to the Hyundai Santro program. Contracts Endurance has received US$20m worth of business for a Ford pick-up truck. In 2003, Hyundai began sourcing Aluminium die-casted components for the Santro model. In 2004, Endurance commenced supplies of SOS shock absorbers for the LML CRD 100. The company is also supplying friction plates and front forks for the LML CRD 100. Endurance has been supplying castings to Honda Motorcycle & Scooters India. Endurance has been supplying to various programs run by Fiat India. Endurance is the largest supplier of castings to Mahindra & Mahindra. The relationship is particularly strong in case of five speed gearbox castings where Endurance holds a major chunk of M&Ms business.
156
Globally, Endurance supplies front forks to Paioli Meccanica through a buy back arrangement and Yamaha in Spain and France. Yamaha has shown interest in sourcing its shock absorber requirements through Endurance. The company has also been supplying clutch assemblies and friction plates to global OEMs through Adler. Endurance supplies aluminium die casted components to Tata Motors and Hyundai Motors. Also, Endurance supplies Aluminium die casted components for the Tata Indica platform. Endurance supplies gas filled shock absorbers for the Enfield Electra and Bajaj Pulsar. Endurance has also developed a shock absorber which can be used in both two wheelers and four wheelers In 2003, Endurance received an order worth US$17m from an American company which sourced fully machined Aluminium die cast components.
Infrastructure Endurance has a dedicated plant for the export of front forks in CKD condition. Endurance has the following inspection and testing facilities: CNC- Resistance measuring machine up to 3meter/ sec velocity. Universal testing machine- 40 tonnes, for testing of material properties and weld strength. Spring testing machine- 100Kgs and 500Kgs for checking of springs and rubber components. Digital profile tester for inspection of very critical components. Spring testing machine- 5Kgs and 50Kgs for checking precision valve spring. Surface roughness tester. Painting/ plating thickness tester. Salt spray machine for checking salt spray life of painted and plated components. Micro-hardness testing machines. Adhesive strength testing machine with NC controls for friction lining assembly. Computerized clutch assembly performance testing machines. Digital torque tester. Endurance has in-house tool room infrastructure. Certifications Endurance has received QS9000 certification for several of it manufacturing locations.
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. Endurance systems has been granted patent for its Dust seal washer. The group is seeking patents for its twin tube rechargeable canister type Ole pneumatic Shock Absorber. The company has designed and developed Hydraulic Shock Absorbers with externally adjustable damping force in rebound and compression. The company has developed and launched rechargeable type Gas Filled Shock Absorbers for 2 wheelers, first time in India Endurance has come up with plastic canister shock absorbers which are inexpensive and can be fitted to scooters. Endurance has developed a spring-on-spring system. Financial Overview In 2007, Endurance Technologies registered gross revenues worth INR 15bn (260m, 31 March 2007). Endurance Technologies is a privately held company and does not publish its financial data. Outlook Endurance has rapidly added capacity through inorganic and organic
route and is transforming into a major supplier in the domestic and international markets. Having established itself in Europe, Endurance is now firming its entry into the North American market. In a way the company has been able to diversify away from its earlier mainstay, Bajaj Auto, but in three of four operating segments Bajaj continues to form the biggest revenue source.
157
Enkei Castalloy
Aluminium castings and machined components
Address
Enkei Castalloy Limited Gat No. 1426, Shikrapur Tal. Shirur, District Pune - 412208 Maharashtra, India
Enkei Castalloy is a supplier of castings and machined components for the domestic and export markets. The company operates through three plants based in India.
Enkei Castalloy is a joint-venture between Rai and Associates and Enkei of Japan. The company manufactures cylinder heads for two wheelers and alloy wheels for two-wheelers as well as for four-wheelers in India. The company exports die-cast components to various Tier I and II suppliers in Europe and USA. Enkeis customers include Maruti Udyog Limited, Honda Siel Cars Limited, Tata Motors, Hyundai Motors, Mahindra & Mahindra, Bajaj Auto Limited, Hero Honda Motor Industries, Honda Scooter and Motorcycle Company, Suzuki Motors India Limited, Yamaha India and many more. Its international customers include Trelleborg, Behr Group, ZF Group, and GWK Group.
Tel: +91 2137 677100 Fax: +912137 72643 Internet: http://www.enkeicastalloy.co.in Senior Officers
R Sikand, CEO D Mahajan, Head, Marketing
Recent Developments
Corporate strategy Between 2004 and 2008, Enkei Castalloy sales have grown at a CAGR of 165%. By expanding its production capacity, Enkei has aggressively targeted international customers with a sales target of INR 10bn by 2009-10. Enkei Castalloy uses its parents patented global manufacturing system MAP to manufacture alloy wheels. MAP is a closed loop modular production line that yields high productivity levels. Contracts Enkei supplies alloy wheels for the Toyota Corolla program. Enkei also supplies alloy wheels for the Toyota Corolla Altis program. Enkei also supplies alloy wheels for the Toyota Innova program.
Products
Alloy wheels, cylinder heads, engine crank cases, intake manifolds, steering housings, support brackets
Plants
Maharashtra, Haryana, Uttaranchal
Sales
Financial Overview
In the financial year ended 31 March 2008, Enkei Castalloy recorded sales worth INR3.25bn (51.38m, 31 March 2008), an increase of 41.63% compared to previous years sales of INR2.3bn (39.65m, 31 March 2007). The company reported pre-tax profits of INR63.67m (1.01m, 31 March 2008), a decrease of 55.47% compared to INR143.01m (2.47m, 31 March 2007) in 2007. The net profit decreased by 44.16% to INR66.04bn (1.04m, 31 March 2008) from INR118.26m (2.04m, 31 March 2007) in 2007. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales, INR m 3,251.84 2,296.09 1,227.09 646.49 350.94 Gross sales, m 51.38 39.65 22.85 11.44 6.56 Operating profit, INR m 376.05 337.33 230.09 161.7 76.37 Operating profit, m 5.94 5.83 4.28 2.86 1.43 Profit before tax, INR m 63.67 143.01 125.47 87.51 34.02 Profit before tax, m 1.01 2.47 2.34 1.55 0.64 Net Profit, INR m 66.04 118.26 80.75 71.32 28.15 Net Profit, m 1.04 2.04 1.50 1.26 0.53
Employees
NA
Outlook
158
Going forward, Enkei stands to benefit from its parents supply relations with the Japanese OEMs. Alloy wheels for motorcycles have substantial potential since penetration of such wheels is low in India. With just four wheel suppliers in the market, the potential in this segment is significant.
159
Exide Industries
Batteries
Address
Exide Industries Ltd Exide House, 59 E Chowringhee Road Kolkata 700 020
Tel: +91 033 2283 2136/ 38/ 39 Fax: +91 33 2283 2150/ 51 Internet: http://www.exideindustries.com Senior Officers
RG Kapadia, Chairman RB Raheja, Vice Chairman TV Ramanathan, Managing Director & CEO SK Mittal, Director, R&D PK Kataky, Director, Automotive
Exide Industries (EIL) is among the largest power storage companies in India. The company commands a 90% market share in the automotive OEM segment and 83% in the overall automotive battery market. It is a leading twowheeler battery company in the world. The company also supplies to non-automotive sectors such as defence, motive power, railways, telecommunications and computer hardware.
Formerly known as Chloride Industries, Exide Industries constitutes two business segments -- automotive and industrial applications. The company's flagship automotive battery brands 'Exide' and 'SF' (Standard Furukawa) have a strong presence in the Indian market. In the financial year 2005, Exide manufactured more than 7.2 million units of four wheeler and two-wheeler automotive batteries. The company has a strong presence in the aftermarket with a network of approximately 3,000 dealers across India. Exide exports batteries to countries including Armenia, Australia, Bahrain Bangladesh, Belgium, China, Chile, Columbia, Cyprus, Ethiopia, France, Germany, Greece, Ivory Coast, Italy, Kenya, Kuwait, Lebanon, Mauritius, Myanmar, Netherlands, Oman, Paraguay, Peru, Qatar, Russia, Rwanda, Saudi Arabia, Sierra Leone, Singapore, South Africa, Spain, Sri Lanka, UAE, United Kingdom, Uruguay, Vietnam, Yemen, Zambia and Zimbabwe. Exide Industries customers include Ashok Leyland, Bajaj Auto, Cummins, DaimlerChrysler, Escorts, Fiat India, Force Motors, Ford India, GM India, Hero Honda, Honda Siel, Hyundai India, Mahindra & Mahindra, Maruti Udyog, New Holland Tractors, Swaraj Mazda, Tata Motors, Toyota Kirloskar India and Yamaha.
Products
Batteries
Plants
Chandigarh, Haryana, Maharashtra (2), Tamil Nadu (2), West Bengal (2)
Sales
INR29.8bn (473.2m, 31 March 2008)
Recent Developments Employees

c. 4,000 (31 March 2008) Corporate strategy Exide Industries is focusing on improving its aftermarket and organised retail segment share from 45% to 65% respectively. The company believes that aftermarket demand and exports would be the key growth drivers in the coming years. To this end, Exide is looking at increasing exports, which at present contribute 4% to the company's sales. By 2008, the company expects to achieve 10% of its sales from exports. The company has expressed concern over the signing of the FTA with Thailand stating that the import duty on lead, in Thailand, is substantially lower compared to India. In order to beat the pressure on margins due to lead prices, the company has introduced a hedging policy which is expected to help sustain margins in the short-term. Also Exide has developed new products with lower lead content per unit. Further, the company has acquired a lead smelter unit to mitigate cost hikes and to further integrate its business model. Joint-ventures Exide has a technical alliance with Shin-Kobe Electric Machinery Co. Ltd., a part of Hitachi Group (Japan) for automotive batteries. Exide's Taloja unit has a technical collaboration with the Furukawa Battery Co. Ltd. (Japan) for automotive batteries. In 2003, Exide formed Espex Batteries Ltd, a joint-venture based in UK. In the same year, Exide struck a strategic alliance with IBG of Netherlands for marketing. Acquisitions In October 2007, Exide Industries announced the acquisition of Tandon
160
Metals Pvt Ltd, a smelting company based in Pune, Maharashtra. Exide plans to scale up the companys smelting capacity for substituting lead imports. In May 2005, Exide acquired 49.13% shares of GMR Industries Ltd. in ING Vysya Life Insurance Company at a cost of INR2bn (36.9m, 31 May 2005). In 2000, Exide acquired 49% of shares in Associated Battery Manufacturers (Ceylon) Limited (Sri Lanka). Associated Battery was subsequently made a subsidiary of Exide. In 2005, Associated Battery Manufacturers (Ceylon) Ltd became a 61% subsidiary of the company. In 1998, Exide acquired Standard Batteries Ltd adding four factories to its operations.
Investments In 2005, Exide announced a INR5.5bn (97.35m, 31 March 2005) expansion plan for automotive and industrial batteries. In 2003, Exide commissioned its eighth plant, at Bawal (Haryana) for OEM supplies in JIT deliveries. Contracts In 2007, Exide commenced supplies to Mahindra Renault Logan program. In 2006, Exide commenced battery supplies to Tata Ace. Also in 2006, Exide was awarded a contract for supply of batteries to the GM Chevrolet Aveo program in India. In 2005, Exide commenced supplies of batteries to Skoda Auto India for both petrol and diesel variants. In the same year, Exide was awarded a supply contract for the Toyota Corolla model in India. In 2004, Exide was made the sole supplier of batteries to the Toyota Innova program in India. Exide is the sole supplier of batteries to Tata Motors, Bajaj Auto and Kinetic Engineering. Exide is the OE supplier of batteries for Honda City, Honda Accord, Hyundai Santro, Hyundai Accent, Hyundai Sonata, Suzuki Baleno and Suzuki Wagon R, Mitsubishi Lancer, Tata Indica, Tata Indigo, Fiat Palio, Opel Corsa, Toyota Qualis, Mahindra Scorpio and Mahindra Bolero models. New Product Developments In 2006, Exide developed a range of ultrasonically sealed zero-maintenance batteries adapted to Indian service conditions. Also in 2006, Exide was granted an international patent for a vented type leak resistant motorcycle battery. In 2005, Exide developed new batteries for fitment in Mahindra Scorpio, Hyundai and Toyota Qualis models. The company also developed batteries for OE supplies to Tata Motors and Ashok Leyland. In the same period, Exide developed batteries for CNG/LPG powered threewheelers in the replacement market. The range was later extended with batteries for diesel powered three-wheelers. Exide commenced production of thin tubular standby batteries at the Haldia (West Bengal) plant in 2V HR containers to improve cost competitiveness. Exide Industries has developed a 200Ah battery. Certification Exide Industries has been accredited with ISO 9001, QS9000 and ISO 14001 certification by RWTUV. Its plants Hosur (Karnataka), Chinchwad (Maharashtra) and Taloja (Maharashtra) plants have been certified with TS 16949 certification.
Financial Overview
In the financial year ended 31 March 2008, Exide reported net sales of INR29.8bn (473.2m, 31 March 2008), an increase of 50.42% compared to INR19.81bn (342.09m, 31 March 2007) in 2007. The pre-tax profit increased by 62.91% during the year with the closing figure at INR 3.91bn (62.14m, 31 March 2008) compared to INR2.4bn (41.39m, 31 March 2007) in 2007. Net profit increased by 66.46% to INR2.63bn (41.78m, 31 March 2008) from INR1.58bn (27.32m, 31 March 2007) in 2007. Improved sales were registered on account of higher sales of two-wheeler
161
and passenger car batteries and higher prices of lead which were passed to the consumers.
Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004
Net sales, INR bn 29.8 19.81 13.89 11.84 9.78 Net sales, m 473.20 342.09 258.55 209.60 182.71
Operating Profit, INR bn 3.25 2.29 1.82 1.82 Operating Profit, m 56.11 42.63 32.14 34.04
Profit Before Tax, INR bn 3.91 2.4 1.52 1.16 1.19 Profit Before Tax, m 62.14 41.39 28.25 20.57 22.28
Net Profit, INR bn 2.63 1.58 1.01 0.77 0.73 Net Profit, m 41.78 27.32 18.76 13.68 13.61
Outlook Exide Industries has a dominant share of the OEM market but has
potential of growing significantly in the automotive replacement market. Further, the company has received bulk orders from Hero Honda and Bajaj Auto to expand its market in the two-wheeler segment. With an objective to increase its exports, Exide has formed joint-ventures with ESPEX Batteries Ltd (UK) and with IBG (Netherlands). The company is planning to foray into overseas markets such as Australia, Korea and South Africa. For Exide, cost of raw materials are an issue on profitability, but with short-term and long-term measures under planning, the company might be able offset the margin pressures.
162
Federal Mogul Goetze

Pistons and piston rings
Address
Federal-Mogul Goetze (India) Limited, A-26/3 Mohan Co-operative Industrial Estate, Mathura Road New Delhi 110 044 India
Federal-Mogul Goetze (FMG) is India's largest manufacturer of pistons and piston rings. It operates four plants spread across the country and supplies to all major two- and fourwheeler OEMs.
Goetze India was incorporated in 1954 as a joint-venture between Goetzewerke Friedrich Goetze AG, Germany, and the Escorts Group. The company began with a plant in Patiala (Punjab) to manufacture piston rings and cylinder liners. The company expanded and established a plant at Bangalore (Karnataka) in 1978. In 1985, the flagship plant commenced production of small sized pistons for application in two-wheelers. In 1986, Goetze included light alloy cylinders and small size piston rings in its portfolio. In 1995, the company formed Brico Goetze (India) Ltd in collaboration with T&N Plc for the production of sintered metal components. But soon, the company's over-diversified businesses started showing sub-optimal performance. This was followed by diversification into non-automotive business. In 2000, Escorts and Federal Mogul decided to sell its non-core businesses and focus on the automotive industry-. The other businesses were hived off into other companies. In 2000, Federal Mogul Sintered Products Ltd. was merged into Goetze (India ) Ltd. Goetze's capacity is 11 million pistons and 53 million pistons rings per annum. Goetze has one manufacturing facility in Yelhanka (Karnataka), engaged in the production of pistons, piston rings, gudgeon pins and crank pins. The Bhiwadibased (Rajasthan) plant produces sintered metal parts, while the flagship plant at Patiala (Punjab) manufactures pistons, piston rings, cylinder liners, light alloy casting, gudgeon pins and crank pins. Goetze holds the leading market share in its product segment in the OEM supply business. Goetze's customers include Ashok Leyland, Bajaj Auto, Birla Yamaha, Eicher Motors, Escorts, Fiat India, Force Motors, Frick India, Greaves, Hero Honda, Honda Siel, Hindustan Motors, International Tractors, International Tractors, Kinetic Motors, Kirloskar Oil Engines, L&T John Deere, LML, Mahindra & Mahindra, Royal Enfield, San Engineering, Swaraj Mazda, Tata Cummins, Tata Motors, TVS Motors, Voltas and Yamaha.
Tel: +91 11 5149 7600 Fax: +91 11 5149 7601 Internet: http://www.goetzeindia.net Senior Officers
Charles B Grant, Chairman & Director Rustin Murdock, Managing Director & CFO Mohan Narayanan, Vice President, OE Sales & application engineering Rakesh Anand, Director, Projects
Products
Crank pins, cylinder liners, gudgeon pins, light alloy castings, piston pins, piston rings, pistons, sintered products- valve train parts, synchronizer hubs, oil pump rotor and gears
Plants
Punjab , Karnataka (2), Rajasthan
Sales
INR6.23bn (107.23m, 31 December 2007) (Year to 31.12.07)
Recent Developments
Corporate strategy After expanding fast into related and new areas, Goetze decided to focus on its core business and hive off its non-automotive business. In May 2006, Federal-Mogul raised its share in joint-venture, Goetze India Limited, from 25.4% to 50.1%. The company paid INR1.38bn (23.9m, 17 May 2006) to its Indian promoter and has taken over the management control. This move supports Federal Mogul's growth strategy to expand in India, which the company views as one of the key markets for its automotive and aftermarket business. Goetze has continuously increased capacity to meet higher demand from its customers and, with new technology, it plans to retain its market share. Goetze has developed a wide customer base which will help it sustain its business in cyclical downturns in the automotive industry. Joint-ventures In 1997, Goetze entered a joint-venture with Teikoku Piston Ring Co, Japan,
Employees
c. 4,700 (2007)
163
and Federal Mogul forming a new entity, called Goetze TP, for the production of steel piston rings, nitrided steel piston rings, three-piece oil rings and other products. A new facility was set up for the same at Bangalore. The plant has an installed capacity of 14.4m steel rings. Certifications Goetze facilities at Bangalore and Patiala are TS 16949 and ISO 14001 certified, while Bhiwadi facility is TS 16949 certified.
Financial Overview In the financial year ended 31 December 2007, Federal

Mogul Goetze India recorded sales worth INR6.23bn (107.23m, 31 December 2007). The company posted a net loss of INR142.96m (2.46m, 31 December 2007) in 2007. Results for the period are not comparable due to the revision of companys financial calendar.
Outlook Goetze has achieved steady growth in sales aided by a buoyant vehicle market in the country. By tying up for new piston technologies, Goetze will win contracts, for new generation engines, from OEMs who are forced to upgrade to meet more stringent emission norms. In the financial year 2005, Goetze witnessed steady growth in sales and enjoyed even better profit margins, but in 2007, the profits are affected due to input costs of raw materials. Future performance will be based on internal cost efficiency. Growth is sales will be correlated with vehicle sales growth which is expected to be slow down.
After taking over the management control of Goetze India, Federal- Mogul is in better position to leverage its technological expertise, professional management and global distribution network. The company is also optimistic about receiving more order from US based automobiles manufacturers operating in India. There is also high probability of catering to global requirement of parent company through outsourcing from bases in India. However given the current demand scenario, international supplies will depend on cost competitiveness which is vulnerable to a host of dynamic external factors.
164
Fenner India
Automotive belts, oil seals, power transmissions
Address
Fenner (India) Ltd. Khivraj Complex II, 5th Floor, 480, Anna Salai, Nandanam, Chennai 600 035, Tamil Nadu, India
Fenner India, a part of JK Group, is a leading supplier of belts, oil seals and power transmission products catering to the requirement of both the automotive and industrial sectors. The company is the market leader in the automobile segment in both belts and in oil seals. The company also has presence in the replacement market.
Fenner International, the earlier owner of Fenner India, started its operation in India in 1929 as a trading company. In 1955, the company set up its wholly owned subsidiary in India as Fenner Cockill Limited. The name of the company was changed in 1975 to Fenner India Limited. In 1987, JK Group acquired Fenner India. Fenner India has diverse customer base, both in the domestic and in the foreign markets. In the domestic market, the company supplies to Alpump, Ashok Leyland, Bajaj Auto, Force Motors, DTL & Rane, Eicher Motors, Escort Tractors, Hindustan Motors, HMT, Hero Honda Motors, Honda Motorcycle & Scooter India, John Deere, Keihin Penalfa, Kinetic Engineering, Kinetic Motor, LML, Lucas TVS, Mahindra & Mahindra, Maruti Udyog, Maharashtra Scooters, New Holland Tractors India, Piaggio, Rico Auto, Royal Enfield, Same Greaves Tractors, Simpson Sabind Industries, Sundaram Clayton, Subros, Sunbeam Auto, Swaraj Mazda, Tata Motors, TVS Motor, Tractors & Farm Equipment, Visteon Automotive Systems India, VST Tillers Tractors, Yamaha Motor India and ZF Steering Gears. Fenner India also exports its product to 50 countries across the world. In the foreign market, the company supplies to Bearings International (South Africa), Dunlop (South Africa), Fezalar (Turkey), Flex Enterprises (USA), Fordata (China), Higlox (Panama), Mercurio (Brazil), Midas (South Africa), Motion Industries (Australia), RCT (Italy), Rodameintos (Spain), S & V (USA), Transbec (Canada), Westward Parts (Canada), Wyko Hendrickson (UK) and ZVL (Italy).
Tel: + 91 44 2431 2450 Fax: + 91 44 2434 9016 Internet: http://www.fennerindia.com Senior Officers
L Ramkumar, President & Director C Suresh Kumar, VP, Sales & Marketing M Balakrishnan, Senior VP, Operations V Abraham, VP, Technology & Development Raj Menon, General Manager, Exports
Products
Couplings, gear boxes, oil seals, poly vbelts, pulleys, raw edge cogged belts, shaft mounted speed reducers, taper-lock bushes, timing belts, v-belts
Plants
Andhra Pradesh, Tamil Nadu (2)
Recent Developments Sales

INR 3.05bn (48.9m, 31 March 2008) (Year to 31.12.08) Corporate strategy In recent years, Fenner India has implemented several productivity enhancement tools. The company hived off non-core conveyor belt businesses and is now focusing solely on automotive products. The company targets a turnover of INR5bn (79m, 31 March 2008) by 2009. While Fenner had made provisions for acquiring smaller businesses, the company has not yet closed any deals. Fenner India has diversified into the automotive components segment, mainly catering to four wheelers. Among the components that it supplies is engine mountings, automotive pulleys, and other rubber components. Divestments In August 2004, Fenner India divested its conveyer belt business to Fenner PLC, of UK. Investments In February 2006, Fenner India announced the opening of two new facilities; one in Chennai (Tamil Nadu) and the other in Hyderabad (Andhra Pradesh). While the plant at Chennai manufactures oil seals, the Hyderabad plant manufactures raw edge cogged and multi-rib belts. The company made a total investment of INR400m (7.60m, 28 February 2006) in the project. INR250m (4.75m, 28 February 2006) in the Hyderabad facility and INR150m (2.85m, 28 February 2006) in the Chennai facility. This was part of the companys
Employees
c. 2,810 (31 March 2008)
165
expansion drive and up gradation of existing facilities. With the modernisation programme, the production capacity of belts and oil seals was increased by 60% and 50% per annum, respectively.
New Product Development

Fenner India has its own technology centre where it carries out extensive research and development programs. The company spends INR50m (0.79m, 31 March 2008) per year on research and development.
Certifications
Fenner India plants are accredited with ISO 9001:2000, ISO 14001:1996 and ISO/TS16949:2002 quality certificates.
Financial Overview
In the financial year ended 31 March 2008, Fenner Indias estimated sales were INR 3.05bn (48.9m, 31 March 2008).
Outlook
Over the years, Fenner India has successfully added rubber and rubber metal bonded components to its product portfolio. 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, in the core business.
166
Fiem
Automotive lighting equipment & mirrors
Address
Fiem Industries Limited, 32 Mile Stone, G.T. Road, Kundli, Distt. Sonepat, Haryana, India
Tel: +91 130 2219 172 /73 /74 /75 /76 Fax: +91 130 2219 179 Internet: http://www.fiemauto.com Senior Officers
JK Jain, Managing Director JSS Rao, Executive Director, Overseas Operations Anchal Jain, Director, HR Pravin Kumar, Director, South India Opertions Seema Jain, Director, Finance OP Gupta, Chief Financial Officer RK Sharma, Vice President, Sales S Narayanan, Vice President, 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. Fiem supplies mainly to the Indian two-wheeler industry, some passenger cars and commercial vehicles customers and exports through buy-back arrangements with its joint-venture partners.
Fiem was established in 1970s as BP Plastic Industries for the production of automotive lighting and signalling equipment. Fiem Auto & Electricals was established in 1977 with a plant in Delhi. 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. In 1996, the company entered into an alliance with Sung San (Korea), for supply of automotive lighting and signalling equipments to Daewoo India. After the collapse of Daewoo, the company now fulfils the internal needs of Fiem Industries. Fiem generates 95% of its revenues from OEM sales. Fiems OEM customers include Ashok Leyland, Bajaj Auto, Eicher Motors, Escorts, Fiat India, Force Motors, GM, Hero Motors, HMT, Honda Motors and Scooters India, Hyundai India, Kinetic, LML, Mahindra, Majestic Auto, New Holland, Reva, Scooters India, Sonalika, Skoda, Swaraj Mazda, TAFE, Tata and TVS.
Products
Auxiliary lamps, blinkers, cable harness assemblies, fog lamps, frame assemblies head lamps, interior lamps, mirrors, plastics and sheet metal components, rear combination lamps, reflex reflector, warning triangle, tail lamps, 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. The company is keen on supplying to Japanese OEMs by leveraging its designing strength and a technical understanding. 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. At present Fiem draws around 65% of its revenues from TVS. Fiem expects to generate 25% of its sales from exports by 2010. Additionally with new OEM contacts and aftermarket supplies the company plans to decrease its reliance on TVS. Additionally the company is increasing its product range by adding non-lighting products. Such measures have been initiated through joint-ventures for exports of mirrors and cable harnesses besides lighting equipment. Joint-ventures In 2006, the company inked an MoU for establishing a 60:40 joint-venture with Korea Air Conditioners Ltd for the production of automotive radiators, heating elements and air-conditioning systems with 50% buy back commitment. The company shall locate its facility in Hosur. Also in 2006, Fiem signed an MoU with ZADI Divisione Fanaleria CEV Spa, Italy for a 60:40 joint venture to manufacture and supply locking systems. In November 2005, Fiem entered a technical agreement with Ichikoh Industries Ltd, Japan for automotive lighting, rear view and signalling equipment. In 2005, Fiem inked an MoU for a 51:49 joint-venture with Aspock Systems, Austria for automotive lighting and signalling equipment and wiring harnesses for trucks and trailers with 100% buy back arrangement.
Plants
Himachal Pradesh (1), Hosur (3), Mysore (1), Sonepat (1), Noida (1)
Sales
INR1.78bn (28.15m, 31 March 2008)
Employees
Group: 1,500 (31 March 2008)
167
In 2003, Fiem inked an MoU with AMS Co., Korea for technical assistance.
Investments In March 2007, Fiem commenced construction at a Greenfield site in Sonepat, Haryana. In 2006, Fiem established an Export Oriented Unit at Hosur (Tamil Nadu) for supply of mirror plates to Ichikoh. Also in 2006, the company announced the setting up of a plant at Nalagarh (Himachal Pradesh) to service tractor and two-wheeler manufacturers. In 2005, the company added a new plant at Hosur (Tamil Nadu). Also in 2005, the company started a facility at Mysore (Karnataka). In the same year, Fiem started an overseas R&D facility in Japan to strengthen its design capability. In 2004, Fiem established a plant at Hosur (Tamil Nadu). Contracts In 2007, Fiem won an order from Yamaha India. In 2006, Fiem commenced supplies of auto mirror plates to Ichikoh, Japan from its Hosur based Export Oriented Unit. Certifications Fiem Industries has been accredited with ISO 14001:2004, ISO/TS 16949:2002, ISO 9001:2000, QS 9000, ISO 9002 and COP compliance for RDW, Netherlands for E-marked products.
Financial Overview
In its financial year ended 31 March 2008, Fiem Industries generated sales worth INR1.78bn (28.15m, 31 March 2008), an increase of 5.54% over previous years revenues of INR1.68bn (29.01m, 31 March 2007). Operating profit for 2007 increased by 3.48% on a year-on-year basis reaching a figure of INR239.49m (3.80m, 31 March 2008). Net profit for 2007 was at INR93.39m (1.48m, 31 March 2008) compared to INR125.01m (2.16m, 31 March 2007), a 25.3% decrease on a year-on-year basis. The improved sales performance was largely due to additional sales from buy-back arrangements and exports. Year Gross sales, INR m 1,772.98 1,679.88 Gross sales, m 28.15 29.01 Operating profit, INR m 239.49 231.43 Operating profit, m 3.80 4.00 Profit before tax, INR m 141.77 166.57 Profit before tax, m 2.25 2.88 Net Profit, INR m 93.39 125.01 Net Profit, m 1.48 2.16
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. Fiem has rapidly added new customers and widened its product range over the years. The newly initiated four wheeler focus of Fiem has opened major growth opportunities for the company. On the domestic front, the company continues to draw support from two wheeler supply contracts and more worryingly from a single customer which is losing market share. 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.
168
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.gabrielindia.com Address

Magnet House NM Marg Ballard Estate Mumbai 400 038
Gabriel is the flagship company of the Anand Group, one of India's leading automotive groups. It is amongst the largest manufacturers of shock absorbers and a major player in the engine bearings segment. The company serves the OEM, replacement and export markets through its nine manufacturing units spread across the country.
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. Initially, Gabriel India forged a technical and financial alliance with Federal-Mogul (USA) for the production of bi-metallic strips, bi-metallic bearings and copper lead alloys. During the mid-80s Gabriel signed an alliance with Maremont (USA) for the production of McPherson struts. In 1987, the company established a new plant in Nashik (Maharashtra, India) for the production of shock absorbers and front-forks for Yamaha. Today, Gabriel India manufactures over 10 million shock absorbers, struts and front forks per annum. Gabriel India supplies engine bearings to domestic OEMs and the after-market in the automotive industry as well as other segments such as railways, marine and power generation. The company classifies itself into two arms: Engine bearings: Under this unit Gabriel undertakes production of a complete range of bimetal bearings, bushes, flanges and thrust washers, including manufacture of powder metal and bimetal strips. Production is carried out at two facilities Parwanoo (Himachal Pradesh, India) and Gurgaon (Haryana, India) Ride controls products: This division is engaged in the production of shock absorbers for two wheelers; shock absorbers, McPherson struts and other ride control products. Gabriel has seven facilities under the ride control arm, namely Mulund (Mumbai, Maharashtra, India), Gurgaon (Haryana, India), MIDC-Nashik (Maharashtra, India), Dewas (Madhya Pradesh, India), Pune (Maharashtra, India), Hosur (Tamil Nadu, India) and Noida (Uttar Pradesh, India). Gabriels clientele include Ashok Leyland, Atlas Gears, Bajaj Auto, Clutch Auto, Cummins India, Carrier Aircon, Cummins Tata, DhanuMetals, DieselLocoWorks, Eicher Demm, Eicher Motors, Escorts, Fiat, Force Motors, Ford, Hindustan Motors, HMT, Honda Motor Cycles & Scooters India, Hyundai, Kinetic Engineering, Kinetic Motors, LML, Mahindra & Mahindra, Mitsubishi, New Holland, PTL, Rai Prexim, Royal Enfield, Sona Koyo Systems, Sonalika International, Suzuki, Swaraj Mazda, Tata Motors, Toyota, TVS and Yamaha India.
Tel: +91 22 23616544 Fax: +91 22 23698393 Internet: http://www.gabrielindia.com Senior Officers
Deep C Anand, Chairman K N Subramaniam, Managing Director
Products
Bushings, cartridges, hydraulic front forks, McPherson struts, railway shock absorbers, shock absorbers, thin wall bearings, thrust washers, large size bearings
Plants
Dewas (1), Haryana (2), Himachal Pradesh (2), Hosur (1), Mumbai (1), Nashik (1), Noida(1), Pune (1)
Sales
Recent Developments
Corporate strategy Gabriel India moved from being a government contractor to a full-fledged automotive component supplier. In recent years, Gabriel has formed various strategic alliances to expand and improve its product range. With continued focus towards exports for its ride control products, Gabriel has achieved some success in terms of contracts with alliance partners and OEMs abroad. Gabriel is working closely with partner Arvin Meritor for buy-back arrangements for latter's USA and European facilities. The company has achieved some breakthrough in the exports of copper lead powder and sintered strips to Europe and North America. Gabriel India is eyeing potential customers for its engine bearing product line-up in the export segment, with particular focus towards buy-back arrangements. Joint-ventures The company has a technical alliance with Kayaba (Japan) for the production
Employees
c. 2,400 (31.03.08)
169
of shock absorbers and McPherson struts. Gabriel is also received technical assistance from Kabaya's Spanish subsidiary, APA Kabaya. The company has a technical arrangement with Japan-based Yamaha subsidiary, SOQI for upgradation of technology for front forks and twowheeler shock absorbers.
Investments In 2005, Gabriel India established a R&D support facility at its Nashik (Maharashtra) plant for test and validation of shock absorbers and front Forks. In 2005, Gabriel India added a new plant in Gurgaon (Haryana) with technical assistance from Kayaba (Japan). In 2005, Gabriel increased production capacity at its Hosur (Tamil Nadu) plant to meet the increasing demand of front forks for motorcycles. In 2003, Gabriel set up a new facility in Khandsa (near Gurgaon, Haryana) to manufacture aluminium tin bearings. The plant also manufactures large sized bearings for railways and brushes for automotive applications. Contracts In February 2006, Gabriel India signed a supply contract with US-based Arvin Meritor, to supply ride control modules and components for OEMs and aftermarket. Arvin Meritor holds 15.6% equity in the company. In 2005, Gabriel India won a supply contract from Suzuki Motorcycles India. In 2005, Gabriel India commenced supplies of shock absorbers for Toyota's Innova from its Chakan (Pune, Maharashtra) facility. In 2005, Gabriel India began supplies to the Tata Ace program from its Dewas (Madhya Pradesh, India) facility. In 2005, Gabriel India began supplies of shock absorbers and front forks to the TVS Star program. In 2005, Gabriel India commenced supplies of gas charged shock absorbers for Maruti Alto and Zen models. Gabriel India is the sole supplier to the HM Mitsubishi Lancer program, Ford Ikon program and Hyundai Santro model. Gabriel India supplies front shock absorber for a Ford truck program. Gabriel India supplies 100% shock absorber requirement of Tata Motors in the SUV segment. The company supplies front and rear strut for the Tata Indica model. The company exports struts, cartridges and shock absorbers to SOQI Inc., and Yamaha (Japan). Certifications Gabriel India's plants have been certified ISO 9002 / 9001/ 14001, QS 9000, OHSAS 18001 and ISO / TS 16949.

Gabriel India has an R&D center for four wheelers at Chakan (Pune, Maharashtra, India) and an R&D center for 2/3 wheelers in Hosur (Tamil Nadu, India). The company also has a product validation center at its Nashik facility. In 2004-05, Gabriel India started manufacturing Nickel Chrome plated inner tubes for front forks.
Financial Overview
In the financial year ended 31 March 2008, Gabriel India recorded sales of INR4.7bn (74.24m, 31 March 2008), a decline of 21.79% compared to the previous year's sales of INR6.01bn (103.81m, 31 March 2007). Profit before tax declined sharply at INR123.60m (1.95m, 31 March 2008) from INR981.60m (16.95m, 31 March 2007) in 2007. The company recorded a net profit of INR76.5m (1.21m, 31 March 2008), declining by 89.53% compared to INR731.30m (12.63m, 31 March 2007) in the previous year. 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. Year Gross sales, INRbn Operating profit, INRbn Profit before tax, INRm Net Profit, INRm
170
2008 2007 2006 2005 2004
4.70 6.01 5.62 4.78 4.21
0.34 1.17 0.39 0.48 0.49
123.6 981.60 153.00 263.30 262.30
76.5 731.30 88.50 178.90 166.80
Year
Gross sales, m 74.24 103.81 104.59 84.63 78.65
2008 2007 2006 2005 2004
Operating profit, m 5.36 20.28 7.33 8.60 9.20
Profit before tax, m 1.96 16.95 2.85 4.66 4.90
Net Profit, m 1.21 12.63 1.65 3.17 3.12
Outlook Gabriel India's continued efforts to increase exports are beginning to pay off with contracts won in North America and Western Europe. The export strategy is expected to help ease pressure margins, which have reduced the company's profits. Input costs, especially raw material are a cause of concern. Overall the twowheeler market is expected to grow steadily which shall translate into equivalent growth in volumes for Gabriel.
171
GKN Driveline India

Constant velocity joints, drivelines and sideshafts
Address
GKN Driveline India Ltd. Plot No. 270, Sector-24, Faridabad 121 005, Haryana, India
GKN Driveline India is the fully owned subsidiary of GKN Driveline, worlds leading supplier of driveline components. The Indian subsidiary manufactures Driveline, constant velocity joints and sideshafts from its three plants.
GKN Driveline India was formed in 1985 by Uni-Cardon Group and then taken public in 1986. In 1995, company name was changed to GKN Invel Transmission. In 2001, the parent Uni-Cardon Invel Beteiligungsgesellschaft mbH was merged into GKN Automotive GmbH and name of the company changed to GKN Driveline India Ltd. In March 2002, GKN increased its share in the company from 51% to 92.4% and was delisted from the exchange and made private in 2003. Currently, GKN Driveline holds 96.8% share in the Indian subsidiary. GKN Driveline India operates three plants employing 1,100 people. The company supplies to all major domestic OEMs. The main customers of the company include Fiat India, Ford Motors India, General Motors India, Honda Seil Car India, Hyundai Motor India, Maruti Udyog, Mahindra & Mahindra, SAN Motors and Tata Motors. The company is also a significant player in the aftermarket.
Tel: + 91 129 223 2531 Fax: + 91 129 223 0580 Internet: http://www.gkndriveline.com Senior Officers
Sankaran Ravindran, Managing Director Vinod Hans, Sales Ravindra Ojha, Operation Dinesh Bhrushundi, Quality
Products
Constant velocity joints, driveline parts, driveshafts, sideshafts
Recent Developments
Corporate strategy GKN Driveline has traditionally enjoyed strong supply relationships with market leaders including Maruti Suzuki and Tata Motors. To grow its relationships with other significant OEMs, especially those in southern India, the company established a new plant in the region. Further, the company expanded its production capacity in the existing plants by 20% each year until 2008. 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. Joint ventures GKN Driveline India has a technical collaboration with its parent GKN Driveline International. Investments In february 2008, GKN Driveline India opened a new manufacturing facility at Oragadam, Chennai which replaced GKN Drivelines plant in Gummidipoondi, whose production was transferred to the new facility. The new facility has a capacity of 660,000 sideshafts annually dedicated mostly for OEMs based in South India. In January 2006, GKN Driveline India announced its plan to invest in capacity expansion in its existing plants. The company expanded its capacity by 20% annually over the next three years. Contracts GKN Driveline has won the contract to supply driveshafts for the Tata Nano. GKN Driveline supplies driveshafts for the Toyota Corolla Altis. GKN Driveline supplies to the Maruti 800, Swift and Zen Estilo models. GKN Driveline supplies to the Hyundai Santro and Accent models. GKN Driveline supplies the Ford Ikon program. GKN Driveline is the supplier to the Tata Indica and Indica Vista programs. The company supplies to the San Storm model. GKN Driveline has a contract to supply Force Motors Matador model.
Plants
India: Haryana (2), Tamil Nadu
Sales
c. INR 3.2bn (50.65m, 31 December 2008) (Year to 31.12.08)
Employees
c. 1,130 (31 March 2008)
Certifications
GKN Driveline India's Faridabad (Haryana) plant are accredited with ISO
172
9002 certificate. All plants of the company are certified with QS 9000. GKN Drivelines plants are certified with TS 16949 quality certificate.
Financial Overview
In the financial year ending 31 December 2008, GKN Driveline India's sales are estimated at INR 3.2bn (50.65m, 31 December 2008).
Outlook
GKN Driveline has maintained its market leadership in driveline products with access to critical technology from its parent company. GKNs contract to supply to the Tata Nano program will reward to company handsomely once the production commences in 2009. Significantly GKN was followed a wait and watch strategy to invest in the Nana supplier park in West Bengal. This saved GKN the capital and effort to shift equipment to Gujarat. GKN plans to supply the Nano program from its existing facilities until production stabilises.
173
GKN Sinter Metals

Powder metallurgy components
Address
GKN Sinter Metals Ltd, 146, Mumbai-Pune Road, Pimpri, 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 Indian subsidiary is the domestic market leader meeting almost half the requirements of the automotive industry.
GKN Sinter Metals entered India in 1966 when it acquired Birfield, the jointventure partner in Mahindra Sintered Product Ltd. In March 2002, GKN acquired Mahindra & Mahindra's stake in the joint-venture and changed the name of company to GKN Sinter Metals, thus integrating the Indian subsidiary into the parent. GKN Sinter Metals in India has two plants in Maharashtra (India) and employs approximately 520 people. The Indian subsidiary has a wide customer base in domestic as well as foreign markets. In India, the company supplies to Autotech Industries, Avtec, Bajaj Auto, Delphi Automotive System, Force Motors, Gabriel India, General Motors India, Hero Honda Motors, Hindustan Motors, Honda Motorcycle & Scooter India, JKM Daerim, Kinetic Motor Company, Mahindra & Mahindra, Maruti Udyog, Tata Motors, Toyota Kirloskar Motor and Visteon Automotive Systems India. The company supplies to Ford Europe and Renault Motors in France. It also exports to leading tier- I automotive suppliers including Robert Bosch, Delphi and ICD/TESMA.
Tel: + 91 20 2742 6261 Fax: + 91 20 2742 6273 Internet:http://www.gknsintermetals.com Senior Officers

V Srinivasan, Managing Director AL Deuskar, Executive Director, Sales & Export SA Shevade, Vice President, Manufacturing NL Chandrachud, Vice President, R & D DS Mrig, Executive Vice President, Quality
Products
Powder metallurgy parts
Recent Developments
Corporate strategy In recent years, 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. The company is looking at export opportunities, where it has not made significant headway in the last few years. Acquisition In March 2002, GKN Sinter Metals acquired the remaining 49% of Mahindra & Mahindra's stake in the joint-venture, Mahindra Sintered Product Ltd and assumed full ownership of the subsidiary. GKN Sinter Metals paid INR660m (15.5m, 31 March 2002) for the acquisition. Joint-ventures GKN Sinter Metals has technical collaboration with Nippon Piston Ring Co. of Japan for development and manufacturing of double layer valve seat inserts. GKN Sinter Metals has technical collaboration with Ecka Granules GmbH of Germany for copper powder. GKN Sinter Metals has technical collaboration with MicrMet Hamburg to manufacture water-atomised copper powder. Investments In March 2001, GKN Sinter Metals set up a new plant in Ahmednagar (Maharashtra) to manufacture water atomised copper powder in technical collaboration with MicrMet Hamburg. The company made an investment of INR45m (1.1m, 31 March 2001) in this plant which has an installed capacity of 2400 tons per annum. The technical partner, MicrMet Hamburg also has a buyback arrangement with the company.
Plants
Maharashtra (2)
Sales
INR1.6bn (25.3m, 31 December 2008) (Year to 31.12.08)
Employees
c. 520 (2008)
174
Contracts GKN Sinter Metals supplies powder metallurgy parts for shock absorbers manufactured by Delphi. GKN Sinter Metals supplies second-gear synchronizer hubs for fivespeed SUV transmissions manufactured by Toyota Kirloskar Automotive Parts. Certification GKN Sinter Metals plant is accredited with TS 16949 from TUV GmbH of Germany.
Financial Overview
In the financial year ended 31 December 2008, GKN Sinter Metals India reported sales estimated at INR1.6bn (25.3m, 31 December 2008).
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. 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.
175
Goodyear India
Tyres and rubber products
Address
Goodyear India Ltd Ballabgarh Mathura Road Faridabad 121004 Haryana
Goodyear India is the Indian subsidiary of Goodyear, USA. In Asia, Goodyear ranks second in terms of market share. The parent company holds 74% stake in the Indian subsidiary.
In 1922, Goodyear Tyre and Rubber company (India) Ltd was established for trading in tyres and other rubber products. In 1961, the company was converted into a public limited company and its name changed to Goodyear India Ltd. In 1995, 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. Subsequently, Goodyear (USA) bought CEAT's entire share in the jointventure. Goodyear exports to 15 countries including Pakistan, Nepal, Bangladesh, Sri Lanka and Australia. Exports contribute for 10% of the company's annual sales. Its customers include Eicher, Escorts, Ford India, Maruti Udyog, Punjab Tractors, TAFE and Tata Motors.
Tel: +91 129 406 9000 Fax: +91 129 406 9051 Internet: http://www.goodyear.co.in Senior Officers
Prabhakar Jain, Chairman & Managing Director Hugo O Dedekind, Finance Director
Products
Tyres, tubes and rubber products
Recent Developments
Corporate strategy In recent years, Goodyear has been a dominant player in the premium branded tyre market. Goodyear supplies to C-segment vehicles and highend SUV programs, a segment which has grown considerably over the past four years. Despite this performance, it still remains a small volume player as India is predominantly a small car market, a low value, high volume segment dominated by other tyre manufacturers. 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. The additional investment made in Goodyear India, is to make it a strategic manufacturing base for tyre exports in the region. Acquisitions In 1997, Goodyear India acquired its joint-venture partner CEAT's stake in South Asia Tyres Ltd (SAT). SAT has a production capacity of 0.6m tyres per annum with a facility in Waluj, Aurangabad (Maharashtra). Investments In August 2006, Goodyear India announced the conversion of its exclusive retail stores into multi-brand retail outlets at the cost of INR 400m (6.73m, 31 August 2006). Goodyear continues to retail its products in the same premises with an exclusive shop-in-shop setup for its products. In March 2006, Goodyear India invested INR 800m ( 14.9m, 28 March 2006) in its Aurangabad facility. This investment increased its annual capacity by 25% to 1.8m tyres units. In 2004, Goodyear India received funds from parent Goodyear Tire & Rubber Company (USA) which were extended as External Commercial Borrowings. The funds were used to repay high cost working capital loans availed from banks. This lead to a reduction in interest cost. Contracts Goodyear India supplies radial tyres for passenger cars to Maruti. Goodyear India has the contract to supply cross-ply tyres for commercial vehicles to Tata Motors. Goodyear imports tyres to fulfil Tata's contract. Certification Goodyear India is accredited with ISO/TS 16949:2002 certification.
Plants
Haryana , Maharashtra
Sales
INR 9bn (140m, 31 December 2007) (Year to 31.12.08)
Employees
c. Group: 1,020 (2008)
176
New Product Developments In August 2004, Goodyear India launched "Eagle F1 GS-D3" an ultra-high performance passenger radial tyre. In 2001, Goodyear India launched tubeless radial tyres for passenger cars. 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.
Financial Overview In the financial year ended 31 December 2007, net sales of Goodyear India was INR 9bn (140.00m, 31 December 2007) an increase of 6.76% over previous year's figure of INR8.43bn (150.0m, 31 December 2006). Net profit decreased by 10.84% to INR402.3m (6.36m, 31 December 2007) compared to INR451.2m (7.75m, 31 December 2006) in the previous year. 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.
Year 2007 2006 2005 2004 2003 Year 2007 2006 2005 2004 2003 Net sales, INR bn 9.00 8.43 6.73 5.60 5.50 Net sales, m 140.00 142.36 126.15 94.01 96.47 Operating Profit, INR m NA 754 334 260.4 156.5 Operating Profit, m 12.95 6.26 4.37 2.74 Profit Before Tax, INR m 647.5 554.9 104.4 0.5 -126.9 Profit Before Tax, m 10.23 9.53 1.96 0.01 -2.22 Net Profit, INR m 402.3 451.2 88 0.5 -126.9 Net Profit, m 6.36 7.75 1.65 0.01 -2.22
Outlook Despite the fact that Goodyear has long been making tyres in India, the
company has not been able to create a substantial market share. Goodyears decision to compete in the high end products differentiates the company from the regional and international players in the market. The higher margins earned in the premium segment will ensure Goodyear remains competitive and stays away from the intensely competitive, high capital instensive, high volume part of the business. 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.
177
Halonix
Lamps
Address
Halonix Ltd, 59-A, NOIDA Special Economic Zone Noida Phase-II, 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 companys sales.
Pheonix Lamps was incorporated in 1991 as a joint sector company with Pradeshiya Industrial & Investment Corporation of UP Ltd (PICUP), a state government financial organisation in technical and financial collaboration with Phoenix Electric Co. Ltd (PEC), Japan and Soei Tusho Co. Ltd (SOEI), Japan. In 2006, UK based private equity firm Actis acquired 65% stake in the company from founding promoter family. In October 2008, the company was renamed Halonix Ltd. The company has two units in NOIDA Special Economic Zone near Delhi of which one is a 100% Export Oriented Unit. Its other facility is based in Dehradun (Uttaranchal). Halonix derives half its sales from exports. Halonix exports mainly to Australia, Japan, China, Middle East, South-East Asia and Europe. Europe is the largest export destination for Halonix, with the strongest demand coming from Germany. In the domestic market Halonix supplies to Bajaj Auto, Force Motors, General Motors India, Hi-Lux, Hyundai Motor India, JMAHella, Lucas TVS, Lumax Industries, Mahindra & Mahindra, Maruti Udyog, Minda Industries, Neolite Industries, Tata Motors, TVS Motor Company and Volvo India.
Tel: + 91 120 25629 52 -57 Fax: + 91 120 2562 943 Internet: http://www.phoenixlamps.com Senior Officers
Rajiv Prasad, Managing Director Rakesh Zutshi, Vice President, Sales & Marketing
Products
Halogen lamps
Plants
Uttar Pradesh (2), Uttaranchal
Recent Developments
Corporate strategy In recent years, Halonix has focused on establishing itself as a leading supplier of halogen lamps despite having reasonable technical exposure to newer technologies. However, with improved demand for higher-end products and easier access to production technologies, Halonix commenced manufacturing operations for HID lamps in 2008. The company is aggressively eyeing business for passenger car and two wheeler programs. Halonix has also initiated work to enter tail lamp manufacturing business by 2009. 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. Halonix targets sales of INR5bn (79m, 31 March 2008) by the end of 2008-09. Joint-ventures Halonix India has a technical and financial tie-up with Phoenix Electric Co. Ltd (PEC), Japan and Soei Tusho Co. Ltd (SOEI). In February 2008, Halonix signed an agreement with NVC China to manufacture speciality lamps in India. Investments In 2004-05, Halonix took a term loan of INR 50m ( 0.89m, 31 March 2005) to set up a facility in the Noida Special Economic Zone. Halonix sought fresh loan from IDBI worth INR 100m ( 1.77m, 31 March 2005) to expand Noida and Dehradun based facilities. Halonix plans to increase capacity from 80m lamps to 150m lamps per annum by end of 2008. In 2003, the company started its Dehradun (Uttaranchal, India) facility to produce 1.5m halogen lamps and other bulbs per annum at an investment of INR120m (2.1m, 31 Dec 2003).
Sales
INR3.6bn (56.35m, 31 March 2008)
Employees
c. 1,950 (March 2008)
Contracts
Halonix has the contract to supply headlamps for the Tata Nano.
178
Halonix supplies H8 LED lamps for the Maruti Suzuki Swift and Swift Dzire models.
Certifications Halonix has been accredited with ISO 9001:2000, TS 16949:2002, ISO 14001:2004 and OHSAS:18001 status. New Product Developments
Halonix has recently added new automotive products named H13, Long Life, Night Vision and Xtra Performance to its portfolio.
Financial Overview
Halonix recorded sales worth INR3.6bn (56.35m, 31 March 2008) during the financial year ended 31 March 2008 compared to sales of INR2.78bn (47.98m, 31 March 2007) in 2007, an increase of 28.36%. Profit Before Tax for 2008 was at INR520.03m (8.22m, 31 March 2008) compared to INR302.02m (5.22m, 31 March 2007) in 2007. Net Profit improved by 52.5% to INR480.04m (52.52m, 31 March 2008) compared to INR 314.74m ( 5.44m, 31 March 2007) in 2007. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales, INR m 3,566.48 2,778.35 2,327.21 1,929.35 1,628.29 Gross sales, m 56.35 47.98 43.33 34.15 30.42 Operating profit, INR m 702.67 481.81 450.3 393.74 346.82 Operating profit, m 11.10 8.32 8.38 6.97 6.48 Profit before tax, INR m 520.03 302.02 238.52 170.27 133.38 Profit before tax, m 8.22 5.22 4.44 3.01 2.49 Net Profit, INR m 480.04 314.74 235.35 123.27 93.14 Net Profit, m 7.58 5.44 4.38 2.18 1.74
Outlook
Demand for automotive lamps is tied to the new vehicle sales and aftermarket consumption. While new registrations are growing at a slower than anticipated rate, demand from the aftermarket has remained steady. Halonix will witness robust growth in revenues with the commercial introduction of the Tata Nano in 2008-09. Further its exports to the aftermarket in North America and Europe is expected to remain steady.
179
Harita Seating
Seats
Address
Harita Seating Systems Ltd, Hosur-Thally Road, Belagondapalli, Hosur 635 114 Tamil Nadu, India
The company is a leading supplier of seating systems to a wide range of vehicles. It operates through three plants based in the Maharashtra and Tamil Nadu.
In 1986, Harita Seating Systems was established as a joint-venture between the TVS Group and Grammer of Germany. In 1997, operations of Roloforms Polymer were merged with Harita Grammer Ltd. When Grammer faced poor economic conditions, the TVS Group bought out Grammer's share in the venture in 2002. Harita operates three plants, one each in Hosur (Tamil Nadu), Himachal Praders and Pune (Maharashtra) to supply seating systems to customers based in the regions. Harita's commercial vehicles customers include Ashok Leyland, Eicher, Tata Motors and Volvo. Its off-road vehicle customers include Caterpillar, Escorts, John Deere, L & T Komatsu, Mahindra & Mahindra, New Holland, TAFE and Voltas.
Tel: + 91 4347 233 445 Fax: + 91 4347233 460 Internet: http://www.haritaseating.com Senior Officers
H Lakshman, Chairman S Thiagarajan, President V Thiagarajan, General Manager- Finance
Recent Developments
Corporate strategy In recent years, Harita has benefited from the overall buoyant demand for vehicles in India. The company has expanded its presence in the bus and tractor markets where it is the leading player. While initial technology came from Grammer, Harita has established its own R&D Centre. This has helped the company reduce product development time andled to improved relations with OEMs.Now Harita is seeking contracts for export models. Harita is developing seating for all segments of the bus sector while achieving growth in tractor and export segments. Its focus on research and development and regular launch of new products has kept its profit margin secure. Investments In 2006, Harita Seating Systems commenced production of seats for OEMs and other clients at a greenfield facility at Nalagarh (Himachal Pradesh). Also in 2006, Harita Seating Systems added bus interior and trim production line at its Hosur unit. Certifications Harita Seating Systems is accredited with ISO 14001-2004 status. The company has been certified with ISO/TS 16949. New Product Developments In 2005, Harita launched a new passenger seats platform and "ELITE" series of bus seats with new features. In 2004, the company launched new generation suspension platforms for commercial vehicle driver seats. In 2003, Harita launched "Innova" plastic seats for city buses. In 1998, Harita opened its R&D centre.
Products
Seats, bus interior trims
Plants
Himachal Pradesh , Maharashtra , Tamil Nadu
Sales
INR1.91bn (30.33m, 31 March 2008)
Employees
c. 350 (31 March 2008)
Financial Overview In the financial year ended 31 March 2008, Harita Seating Systems generated sales worth INR1.91bn (30.33m, 31 March 2008), a growth of 22.4% compared to INR1.56bn (26.86m, 31 March 2007) in 2007. Profit before tax increased by 8.54% to INR93.9m (1.49m, 31 March 2008) in 2008. Net Profit for the financial year 2008 was INR64.39m (1.02m, 31 March 2008), an increase of 16.77% compared to INR55.14m (0.95m, 31 March 2007) in 2007.
180
Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004
Net sales, INR bn 1.91 1.56 1.37 1.18 0.92 Net sales, m 30.33 26.86 25.58 20.88 17.19
Operating Profit, INR m 173.92 134.84 133.12 98.79 89.4 Operating Profit, m 2.76 2.33 2.48 1.75 1.67
Profit Before Tax, INR m 93.9 86.51 94.69 71.83 68.13 Profit Before Tax, m 1.49 1.49 1.76 1.27 1.27
Net Profit, INR m 64.39 55.14 61.87 45.18 43.77 Net Profit, m 1.02 0.95 1.15 0.80 0.82
Outlook Harita is a focused player in the seating business with buses and tractors
as its thrust area. It is relatively small in the passenger car business and fairly regional in its footprint. With R&D done in-house, Harita is expected to continue introducing new products. Its growth will depend on winning new contracts and the growth of the CV and tractor business. Further, its foray into theatre and auditorium seats will hedge the company against the cyclical nature of the automotive industry.
181
Hi-Tech Gears
Gears and transmission components
Address
Hi-Tech Gears Limited 14th Floor, Tower - B Unitech's Millennium Plaza South City, Sector - 27, Gurgaon Haryana India
Hi-Tech Gears is based on two collaborations and primarily supply the two-wheeler sector apart from passenger car, off-road and commercial vehicles markets. Hi-Tech also has interests in engineering, softwares and robotics.
Hi-Tech began with technical tie-up with Kyushu Musashi, a Honda associate vendor, to supply to Hero Honda. The arrangement with Kyushu Musashi remains a technical need-based one and there is no equity partnership. Its association grew beyond Hero Honda as other Honda companies including Honda Siel Cars, Honda Motorcycles and Scooters India and Honda Siel Power Products, entered India. Further, 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. Currently, the Hi-Tech Group consists of two manufacturing facilities, a jointventure with Getrag, an engineering services subsidiary and an arm into robotics. Hi-Tech's customers include Ashok Leyland, Bosch, Caterpillar, Cummins India, DaimlerChrysler, Eicher, Ford, Getrag, Cummins, Hero Honda, Hindustan Motors, Honda Scooter & Motorcycle India, Honda Siel Cars, Honda Siel Power Products, Hyundai, Mahindra & Mahindra, Maruti Udyog, New Holland, Royal Enfield, TVS, Volvo and Yamaha Motors India.
Tel: + 91 124 2806080 - 84 Fax: + 91 124 2806085,87,89 Internet: http://www.hitechgears.com Senior Officers
Deep Kapuria, Chairman & Managing Director Pranav Kapuria, Deputy Managing Director Deepak Rai, CFO & Vice PresidentCorporate Affairs Vijay Mathur, 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 - its technical tie-up or joint-venture. Currently, 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 - both domestically and internationally. Hi-Tech's joint-venture with Getrag is solely established to meet an international demand and has resulted in a buy-back arrangement. Further, the company has been strongly following lean manufacturing techniques, TPM practices and has benchmarked itself against global standards to reach its ambitions. It has set an aspiration to be a US$1bn company by 2015 with sales generated equally in the domestic and export markets. The equal focus on domestic and global markets is a strategy to de-risk its business in the long-term. Joint-ventures In 2005, Hi-Tech formed a 50:50 joint-venture with Getrag Corporation for manufacture and exports of axle shafts. An international procurement office was established as part of the joint-venture in India for exports. Hi-Tech Gears has a technical tie-up with Honda supplier Kyushu Musashi (Japan) for two and four-wheeler transmission parts. Investments In 2005, Hi-Tech invested approximately INR 450m (7.97m, 31 March 2005) in its new Manesar (Haryana) plant. The plant undertakes production of timing gears and export requirements. The plant was established at an investment of INR450m (7.97m, 31 March 2005). Contracts In 2005, Hi-Tech won a contract to supply finished gears for the Hero Honda CD100 model. In 2005, Hi-Tech commenced supplies of axle shafts to Getrag from its new Manesar (Haryana) facility. The axle shafts are being sourced by Getrag for assembling in its allwheel-drive division and then supplying to GM (USA).
Products
Engine sprockets, power take-off unit for off-highway vehicles, precision forgings & precision machine parts, timing gears, transmission gears & shafts, wheel hub, wheel spindles
Plants
Rajasthan, Manesar
Sales
Employees
c. 680 (2008)
182
In 2005, Hi-Tech won a supply contract from Robert Bosch to supply injector flanges for CRDI systems. Hi-Tech supplies crosshead valves to Cummins. Hi-Tech supplies engine gears to Caterpillar. Hi-Tech supplies engine gears to New Holland.
Certification Hi-Tech has been accredited with QS 9000 and ISO 9002 certifications.
Financial Overview
In the financial year ended 31 March 2008, Hi-tech gears recorded sales of INR2.85bn (45.18m, 31 March 2008), a drop of nearly 5.12% compared to INR2.99bn (51.79m, 31 March 2007) in 2007. Profit before tax increased by almost 13.93% to INR134.47m (2.43m, 31 March 2008) from INR134.47m (2.32m, 31 March 2007) the previous year. Net profit for the year increased by 17.53% to INR97.92m (1.55m, 31 March 2008) compared to INR 83.31m (1.44m, 31 March 2007) in 2007. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales, INR m 2,845.02 2,998.73 2,253.51 1,796.81 1,388.77 Gross sales, m 45.18 51.79 41.96 31.80 25.94 Operating Profit, INR m 386.06 333.19 237.04 223.32 184.98 Operating Profit, m 6.13 5.75 4.41 3.95 3.46 Profit Before Tax, INR m 153.21 134.47 92.57 124.46 84.21 Profit Before Tax, m 2.43 2.32 1.72 2.20 1.57 Net Profit, INR m 97.92 83.31 55.34 78.01 52.52 Net Profit, m 1.55 1.44 1.03 1.38 0.98
Outlook Hi-tech Gears is focused on high technology and quality products for the
domestic and global markets. It has two strong partnerships with Getrag and Kyushu Musashi which will provide it with updated technologies for new products in the future. Export is a long-term focus for the company which it is striving to increase to 50% of total sales from a current 25%. Hi-Tech Gears will grow also on the growing domestic market where it supplies to both two and four-wheeler OEMs. 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.
183
IP Rings
Piston rings
Address
IP Rings Ltd Arjay Apex Centre 24, College Road Chennai 600 006 Tamil Nadu India
IP Rings is an Amalgamations Group company. It manufactures a wide range of piston rings based on its strong capabilities in various surface engineering technologies.
IP Rings manufactures steel rings and cast iron rings for pistons, with an installed capacity of 10 m piston rings per annum. IP is among the few companies in India to manufacture Niflex-S type rings. Around 60% of IP's production is for OEM customers. For the aftermarket, IP uses the distribution network of its sister concern, India Pistons. IP customers include Ashok Leyland, Eicher Motors, Hindustan Motors, Hyundai Motor India, Mahindra & Mahindra, Maruti Udyog, Simpson & Co, Tata Motors, Tractors & Farm Equipment and TVS Motor Company.
Tel: +91 44 2824 1887/ 5214 3592 Fax: +91 44 2822 0410 Internet: http://www.iprings.com Senior Officers
A Silvasailam, Chairman N Venkataramani, Vice Chairman KV Shetty, Managing Director S Rangarajan, Associate Vice President, (Finance) & Secretary N Gowrishankar, Executive Director N Ramakrishnan, General Manager, Marketing
Recent Developments
Corporate strategy IP Rings is a market leader in piston rings in the south Indian automotive cluster. In less than a decade, IP Rings sales mix between OE and replacement market supplies has changed from 50:50 to 80:20. The average life of a piston ring in India continues to be one eighth of that of a developed nation. With the maturing of the Indian market, IP rings is focusing on supplying higher quality piston rings to OEMs and reducing its dependence on the fragmented replacement market. The company has intensified its internal cost control measures to maintain margins as OE supplies enjoy lesser margins compared to aftermarket. Joint-ventures IPR has a technical collaboration with Nippon Piston Ring Co, Japan for piston rings. The latter holds 9.99% equity in the company. Contracts IP supplies its products to all major Indian OEMs.
Products
Bevel gears, differential shaft gears, grey cast iron steel rings, nifflex expander based three piece oil rings, nodular iron steel rings, pinions, special alloy steel rings, synchro-cones
Plants
Tamil Nadu
Sales
INR540.13m (8.53m, 31 March 2008)
New Product Developments In 2005, IPRL developed chrome plating and other coating techniques to increase ring life and optimise performance with reference to the oil consumption, blow-by and emission legislations. The company incurred R&D expenses amounting to 1.8% of the total sales in 2008.
Certifications IPRL has been accredited with TS 16949 status.
Employees
c. 220 (2008)
Financial Overview
In the financial year ended 31 March 2008, IP Rings generated sales worth INR540.13m (8.53m, 31 March 2008), an increase of 9.35% compared to INR493.94m (8.53m, 31 March 2007) in 2007. Profit before tax decreased by 33.4% to INR40.18m (0.63m, 31 March 2008) in 2008, compared with INR60.31m (1.04m, 31 March 2007) in 2007. The company recorded a net profit of INR25.04m (0.4m, 31 March 2008) in 2008, a decrease of around 35% over INR38.87m (0.67m, 31 March 2007) in 2007. Year 2008 2007 2006 Net sales, INR m 540.13 493.94 484.70 Operating Profit, INR m 92.71 107.54 119.35 Profit Before Tax, INR m 40.18 60.31 77.60 Net Profit, INR m 25.04 38.87 51.21
184
2005 2004
442.40 412.17
105.00 101.65
73.42 70.94
49.96 47.97
Year 2008 2007 2006 2005 2004
Net sales, m 8.53 8.53 9.03 7.83 7.70
Net Profit, m 0.40 0.67 0.95 0.88 0.90
Outlook
With excess capacity in the domestic sector, several piston ring suppliers are keen to fortify their presence in the aftermarket for growth. However, IP Rings being priced significantly higher than lower grade producers is less likely to enjoy a growth in the aftermarket. In the recent times, 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, the company is well positioned to grow in the fast growing Indian car market.
185
Jay Ushin
Body parts, security systems and switches
Address
Jay Ushin Ltd, GP 14,HSIDC Industrial Estate, Sector 18, Gurgaon-122001, Haryana, India
Jay Ushin is a leading supplier of lock sets, door latches, instrument clusters and switches in India. The company has a collaboration with U-Shin of Japan for automobile locks, with Shinchang Electric Co of Korea for key sets and multifunction switches. The company also has a tie-up with YNS Inc. of Japan for instrument clusters. It supplies to nearly all the automobile manufacturer in India.
Tel: +91 124 6340423 Fax: +91 124 6340333 Internet: http:// www.jpmgroup.co.in Senior Officers
JP Minda, Chairman Anil Minda, Technical Director Ashwani Minda, Managing Director MM Gupta, Vice President- 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, mechanical and electronic components for four wheelers. In 1989, the company became operational and started supplying lock sets to Maruti Udyog. From 1996, the company began supplying instrument clusters to Maruti Udyog. Jay Ushin has technical collaboration with YNS Inc. of Japan for instrument clusters since 1995. The company had also signed another technical collaboration agreement with Shinchang Electric Co. Ltd. of Korea in 1998 to manufacture key sets and multi-function switches for Hyundai Motor India Ltd. Jay-Ushin group companies have numerous other technical joint-ventures. Jay Ushin supplies to almost all major automobile manufacturers in India. Main customers of the company include Ashok Leyland, Bajaj Auto, Cummins India, Fiat India, Ford India, Eicher, Escort, General Motors India, Hindustan Motors, Hero Honda, Honda Motorcycle and Scooter India, Honda Siel, Hyundai Motor India, Kinetic Motors, Mahindra & Mahindra, Maruti Udyog, Royal Enfield, Swaraj Mazda, Tata Motors and Yamaha Motors India.
Products
Security systems: immobilizers, key sets, keyless entry, remote locking Body parts: central locking, door latches, door handles, hood latches, strikers Switches: combination switches, defogger switches, handle bar, hazard warning, panel switches, power window, stop and back-up lamps Others: heater control lever assemblies, heater panel assembly, tank units Plants Haryana (2), Tamil Nadu
Recent Developments
Corporate Strategy Jay Ushin, with the help of its joint-venture partners and technical collaborators, continuously launches new productsto meet the increasing demand of security system products in the industry. With the increase in volumes of the industry and the shift of product mix towards high-end security systems, Jay Ushin stands to gain. The group has plans to expand through setting up of new units and further new joint-ventures and also setting up overseas offices. Joint-ventures Jay Ushin is a joint-venture between the Minda family and U-Shin, Japan, for the production of lock sets, door latches and switches. U-shin holds 25% equity in the company. Jay Ushin has technical assistance agreement with YNS Inc. of Japan. Jay Ushin has technical assistance agreement with Shinchang Electric Co. Ltd. of Korea.
Sales
INR 2,378.5m(37.77m, 31 March 2008) (Year to 31.12.05)
Employees
c.650 (2008)
Contracts In 2004-05, Jay Ushin was awarded the contract for supply of lock-key-sets and components for a new car model by Hyundai Motor India. Jay Ushin supplies lock-key-sets and glove boxes for the Hyundai Accent.
186
The company also supplies power window switches and back up lamp switches for the Hyundai Santro program. Jay Ushin supplies lock-key-sets and latches for the Maruti 800, Alto, WagonR and Baleno. It also supplies central locking for Alto, Wagon- R, Jay Ushin supplies heater assemblies to Honda Jay Ushin supplies lock-sets for the HM-Mitsubishi Lancer.
New Product Developments Jay Ushin developed M/F switches, panel switches and power window switches for Santro and Ascent model of Hyundai Motors India Ltd. Jay Ushin developed A/C control panels for Indica and Safari model of Tata Motors. It also developed door latches and inner door handles for Indica model. 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.
Financial Overview In the financial year ended 31 March 2008, Jay Ushin recorded
sales of INR 2,378.5m(37.77m, 31 March 2008), up by 57.36% as compared to INR1,511.45m (26.10m, 31 March 2007) in 2007. The company reported an increase in operating profit by 69.26% to INR144.45m (2.29m, 31 March 2008) as compared to INR85.34m (1.47m, 31 March 2007) in 2007. However, profit before tax decreased by 190% to INR65.99m (1.05m, 31 March 2008) over INR22.75m (0.39m, 31March 2007) in 2007. Net profit of the company also decreased by 224% to INR 42.21m (0.67m, 31 March 2008) as against INR13.00m (0.22m, 31 March 2007) in 2007. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR m 2,378.50 1,511.45 1,038.65 802.95 762.82 Net sales, m 37.77 26.10 19.34 14.21 14.25 Operating Profit, INR m 144.45 85.34 73.65 80.22 89.46 Operating Profit, m 2.29 1.47 1.37 1.42 1.67 Profit Before Tax, INR m 65.99 22.75 23.45 38.57 36.17 Profit Before Tax, m 1.05 0.39 0.44 0.68 0.68 Net Profit, INR m 42.21 13.00 15.52 23.76 23.21 Net Profit, m 0.67 0.22 0.29 0.42 0.43
Outlook
With increasing concern for car thefts in India, Jay Ushins sales of security systems is expected to grow. However, the company faces stiff competition from domestic players. In the future, this competition is likely to intensify with increasing presence of global safety system products suppliers. The company has a mass vehicle producers as customers. Going forward, with increase in domestic sales and car exports from Hyundai and Maruti, the company sales will grow. Further, an increasing content per car produced by the company will support the growth.
187
Jaya Hind
Aluminium die-castings and automotive components
Address
Jaya Hind Industries Ltd, Mumbai-Pune Road, Akurdi, Pune 411 035 Maharashtra
Tel: +91 20 2747 3981 Fax: +91 20 2747 4827 Internet: http://www.jayahind.com Senior Officers
Prasan Firodia, Managing Director SR Shivshankar, VP, Operations SM Kathavate, Head, Sales Anand Mangrulkar, Manager, Exports DN Narvekar, GM, Production US Prabhu, GM, R&D
Jaya Hind, part of the Force Motors group, manufactures aluminium castings and automotive components including auto electrical products. It is a leading supplier of ignition coils, AC generators and fly-wheel generators for two and three-wheeler sectors. It also supplies clutch discs and clutch cover assemblies, brakes calipers, water pumps to OEMs.
Though established in 1946, Jaya Hind started its automotive components business in 1964, when it set up a pressure die-castings plant in Pune (Maharashtra). The company collaborated with Denso (Japan) for the manufacture of ignition coils in 1989. In 1997, Jaya Hind set-up the country's largest pressure die-casting facility at Pune and in 1998, formed an alliance with Handtmann (Germany) and VAW Mandl & Berger (Austria). In 2004, Jaya Hind formed a partnership with Heck & Becker (Germany) for large HPDC dies and in 2005, the company formed a partnership with Bridge Aluminium (UK) for turbo chargers. Jaya Hind has structured its operations into pressure die-castings, auto components, tool rooms, fabrication and gravity die-castings divisions. Its domestic customers include, Ashok Leyland, Cummins India, Eicher Motors, Fiat India, Force Motors, General Motors India, Gestetner India, Hero Honda Motors, Hindustan Motors, Kinetic Engineering , Kinetic Motor Company, Knorr Bremse Systems, Lumax Industries, Mahindra & Mahindra, Maruti Udyog, Motor Industries, Premier Seals India, Rane TRW Steering Systems, Tata Motors, Tata Toyo Radiators and TACO. Its international customers include Daimler, Ford Motors, MAN and Peugeot.
Products
AC generators, alternator mountings, coolant pipes, brake caliper, clutch plate, cylinder head cover, clutch housing, crank case, cylinder head cover, differential cover, fly-wheel generator, ignition coil, intake manifolds, pressure die-casting, oil cooler head, oil sump, timing case cover, turbo charger castings and turbo charger pipes, wiper motor and water pumps
Recent Developments
Corporate strategy In recent years, Jaya Hind has upgraded its manufacturing operations and product development capabilities. The company has sought product specific alliances with international suppliers. India has emerged as a strong supplier of die-cast components and Jaya Hind is eyeing export opportunities for its casting and machined components. The company achieved export sales of INR1.2bn (18.96m, 31 March 2008) in 2008 and plans to increase this to INR1.5bn (23.7m, 31 March 2008) by 2011. Joint-ventures In 2005, the company formed a partnership with Bridge Aluminium (UK) for the manufacture of turbo chargers and castings. In 2004, Jaya Hind formed a partnership with Heck & Becker (Germany) to design and manufacture large pressure die-castings upto 4000 tons. Investments In the financial year 2006, Jaya Hind has invested over US$25m (20.7m, 31 March 2006) to upgrade technology and enhance capacity. In 2005, Jaya Hind invested INR1bn (17.7m, 31 March 2005) for capacity expansion at the Urse, Pune (Maharashtra) plant. Also In 2005, the company invested around INR80m (1.42m, 31 March 2005), to manufacture cylinder heads for Ford's Sigma engines. Jaya Hind supplies Sigma Series engine heads to Ford India for the Ford Fusion model. In 2005, Jaya Hind invested around INR35m (619,670, 31 March 2005) to supplier 75,000-100,000 cylinder heads per annum for Mahindra Scorpio's common-rail diesel engines.
Plants
Maharashtra (3)
Sales
Employees
c. 1,520 (2008)
188
Contracts Jaya Hind supplies cylinder heads for the Tata Indica Vista program. Jaya Hind supplies the entire gearbox housing for GM's Chevrolet Tavera model. It supplies cylinder heads for the Isuzu engine produced by Hindustan Motors. It is the single source supplier for Scorpio's gearbox and is currently developing transaxle gearbox housing for the Mahindra Champion. In 2005, Jaya Hind was awarded the contract for the Mahindra-developed 'Eagle' petrol engine project. In 2005, Jaya Hind won a contract worth around INR400m (7.1m, 31 March 2005) to supply the entire aluminium casting requirements for two of MAN's large volume engines.
Financial Overview
For the financial year ended 31 March 2008, Jaya Hind achieved sales of INR 3.5bn (55.3m, 31 March 2008). The company does not disclose its detailed financial results.
Outlook
Jaya Hind Industries has emerged as a strong casting supplier with upgradations in facility carried out since 2004. The company's vision is to attain exports accounting for 50% of its sales. The establishment of Volkwagen and General Motors assembly plants around Pune will help the company in achieving its growth in sales. The company has become one of the largest producers of aluminium cylinder heads, deployed in common-rail engine technology in India.
189
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.jktire.com Senior Officers
Hari Shankar Singhania, Chairman Raghupati Singhania, Vice Chaeirman & Managing Director Bharat Hari Singhania, Managing Director Vikrampati Singhania, Deputy Managing Director Swaroop Chand Sethi, Director
JK Industries owned JK Tyres is the 18th largest tire manufacturer in the world and third largest in India. 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. JK Tyres is also the largest exporter of tires from India and ships to 75 countries across the six continents. The company accounts for about 28% of India's tire exports.
JK Industries was incorporated as a managing agency in 1951. In 1971, the company shifted its focus towards automotive tire and tube manufacturing after necessary government approvals were granted. With a licensed manufacturing capacity of 400,000 automotive tires and tubes per annum, commercial operations started in 1974. The company went on to extend technical ties in collaboration with General Tire International Co. USA for a five year period. Subsequently, the technical arrangement was extended in 1981. Following economic reforms initiated in 1992, JK Industries expanded its presence by opening offices and subsidiaries in Moscow, UK and Hong Kong. JK Tyre has a strong brand positioning in the Indian market with dominance in the commercial vehicle segment. The company runs a retail chain under the JK Tyre Steel Wheel brand with 129 outlets in India. JK Tyres also uses a dealer and sub-dealer network of 3,600 outlets. Its major customers include Ashok Leyland, Tata Motors and Volvo.
Products
Tires
Plants
India: Karnataka (2), Madhya Pradesh, 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. To keep pace with the growth in demand, JK Tyres plans to increase capacity at its existing plants in India to 12m tires per annum by 2011 from 8.7m currently. The company has aggressively targeted the export market with the acquisition of Tornel. The acquisition added a production capacity of 290 tonnes per day to the earlier capacity of 650 tonnes per day. 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. Acquisitions In April 2008, JK Tyres acquired Mexico based tire manufacturer Tornel for INR2.7bn (42m, 30 April 2008). In 2004, JK acquired the operations of Vikrant Tyres. The acquisition of Vikrant added two manufacturing facilities at Mysore (Karnataka, India) coupled with an increase in market share in the commercial vehicle segment. Vikrant Tyres had a strong presence in the southern region of the country. Joint-ventures JK Tyres has a technical collaboration with Continental AG, Germany for steelbelted truck radial tires. Investments In September 2004, JK Industries invested INR1.7bn (32.13m, 30 September 2004) in its car and truck radial facilities to increase capacity. In June 2003, JK Tires announced an estimated cumulative investment of INR1bn (18.90m 30 June 2003) to INR1.5bn (28.35m, 30 June 2003) in its facilities including INR750m (14.17m, 30 June 2003) in its Vikrant tires facility to increase radial capacity at its Mysore plants.
Sales
INR28.14bn (412.25m, 30 September 2008) (Year to 30.09.08)
Employees
c. 6,971
190

In the financial year ended 30 September 2005, JK industries spent INR81.8m (1.55m, 30 September 2005), 0.36% of net sales on R&D. JK Industries sources its tire technology from Continental AG, Germany and its in-house research and development capabilities at Hari Shankar Singhania Elastomer and Tire Research Institute (HASETRI). JKI is the first and only manufacturer to introduce low rolling resistance tires in the country developed at HASETRI R&D facility. In 2002, JK Industries launched its first coloured silica based radial tires for the passenger car market. These tires were developed at its HASTRI R&D facilities.
Contracts
JK Tyre is the sole supplier to the Maruti Suzuki SX4-Zxi and Swift programs. 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, JK Industries reported sales of INR28.14bn (412.25m, 30 September 2008), a 35.34% increase over previous year's sales of INR20.79bn (366.33m, 30 September 2007). Operating profit increased by 101.48% to INR2.65bn (38.83m, 30 September 2008) as compared to INR1.32bn (22.64m, 30 September 2007) in 2007. The company's profit before tax was INR1.0bn (14.71m, 30 September 2008), increasing substantially compared to INR34.40m (0.59m, 30 September 2007) in 2007. Net profit increased sharply to INR665m (9.8m, 30 September 2008) in 2008 from INR167.60m (2.9m, 30 September 2007) in 2007 on cost cutting measures and improved sales of higher margin products. Year(Sep tember) 2008 2007 2006 2005 2004 Year(Sep tember) 2008 2007 2006 2005 2004 Sales, INR bn 28.14 20.79 19.20 23.84 22.38 Sales, m 412.25 366.33 330.41 450.78 395.59 Operating profit, INR m 2,650.30 1,315.40 1,560.10 1,315.40 1,560.10 Operating profit, m 38.83 23.18 26.85 24.87 27.58 Profit before tax, INR m 1,004.10 34.40 164.80 34.40 164.80 Profit before tax, m 14.71 0.61 2.84 0.65 2.91 Net Profit, INR m 665.00 167.60 121.90 167.60 121.90 Net Profit, m 9.74 2.95 2.10 3.17 2.16
Outlook
JK Tyres strong association with leading OEMs has helped the company retain its dominance in its segments. The recently acquired Tornel facility has added substantially to the companys manufacturing footprint and will help JK Tyres in establishing short lead times for supplying its customers based in the Americas. Regular expansion, entry into high margin business and cost restructuring has ensured substantial improvement in the companys performance.
191
JKM Dae Rim Automotive

Engine and transmission components
Address
JKM Dae Rim Automotive Ltd, F-67, SIPCOT Industrial Park, Irrungattukottai, Sriperumbudur, Kanchipuram Dist. 602 105, Tamil Nadu
JKM Daerim Automotive, a joint-venture between Dynamatic Technologies (India) and Daerim Enterprise Co. Ltd (South Korea) produces ferrous and non-ferrous engine and transmission components for the global automotive industry.
Established in 1997, JKM Dae Rim Automotive (JKM) is a 73:27 joint-venture between Dynamatic Technologies and DaeRim Enterprise. It was established initially to supply Hyundai Motors India but has over the years, added other domestic customers. JKM's current domestic customers include Fiat India, General Motors India, Hindustan Motors, Hyundai Motor India, Mahindra & Mahindra, Tata Motors and its export customers include Ford (South Africa), John Deere (USA), Tenneco Automotive (UK) and Volvo.
Tel: +91 41 1125 6049 Fax: +91 41 1125 6050 Internet: http://www.jkm-daerim.com Senior Officers
Satyanand Munjal, Chairman Sudhir Munjal, Managing Director Ravi Sharma, General Manager- Finance
Recent Developments
Corporate strategy In recent years, JKM Daerim has won several OEMs contracts to supply leading programs. This helped the company in growing beyond its main customer Hyundai. The company now actively supplies components to Tata and Mahindra and is developing new components for upcoming programs of the two manufacturers. This has significantly reduced its dependence on Hyundai for business. The company has also won an export contract from Tenneco. Encouraged by the response, JKM Daerim is scouting for more export contracts and opportunities to supply through Daerims supply network. Contracts JKM is the single source supplier for a wide variety of critical engine and transmission parts for the Hyundai Santro and Accent cars. The company supplies components to the TATA Indica and Sumo programs. JKM has a contract for Mitsubishi Lancer and Mahindra Scorpio models. In 2004, JKM won contracts from Ford and John Deere (USA). In 2003, 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.
Products
Body speedometer, bushes, camshaft cap, case differential, case oil seal, Clutch reverse forks, dog controls, exhaust manifold, fork shifts, inlet manifold, lever selection assembly, lever clutch operating, lube- oil pump assembly, rocker arms, rocker cover assembly, support differential, support engine, support gear box and water pump assembly
Plants
Tamil Nadu
Sales
Financial Overview
In the financial year ended 31 March 2008, JKM's estimated sales were INR1.4bn (22.12m, 31 March 2008). No other financial information was available.
Employees
c. 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. Further, its focus on adding domestic customers has given it significant supply volumes.
192
Johnson Matthey
Catalytic Converters
Address
Johnson Mathey India (P) Ltd Plot No 12, Sector 3, IMT Manesar, Gurgaon 122050 Haryana, INDIA
Johnson Matthey is the market leader in catalytic converters in India. The company is a supplier to Maruti and has an overall 60% marketshare in the Indian market. Johnson Matthey is a supplier to both four-wheelers and two-wheelers segments.
Johnson Matthey Indias Environmental Catalysts Division caters to the automotive industry. Johnson Matthey Catalysts has a plant in Manesar in Gurgaon, near New Delhi with an annual production capacity of eight million catalytic converters for four-wheelers and two-wheelers. Out of this, about 20% is being exported to the North American and European aftermarkets. Johnson Mattheys biggest customer is Maruti Udyog, Indias largest passenger car manufacturer. Approximately 50% of the companys revenues come from supplying to Maruti. Significant growth in supplying Ford India and Mahindra & Mahindra is being registered. The companys market is limited to domestically produced cars.
Tel: +91 124 2290234 / 546-553 Fax: +91 124 2290239 / 240 Internet: http://www.matthey.com Senior Officers
Alok Khetan, Managing Director
Products
Auto catalysts, 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. Yet, the company has substantial spare capacity which it has been trying to utilize. With the shift of the Indian norms towards Euro III, Johnson Matthey has been able to gain new business in the recent past. However, most of the future business still depends on the parent companys relations with various OEMs as global suppliers to model programmes are often carried over to new locations. Investments Johnson Matthey Catalysts' first unit was established in Okhla, New Delhi. In 2000, the company moved production to a new production plant in Manesar, in Gurgaon (Haryana) near Delhi. The plant has a total capacity of four million catalytic converters per annum. In 2005, Johnson Matthey announced that it is going to establish a new production line in its existing facility in Manesar, Gurgaon (Haryana), to manufacture catalytic converters for heavy-duty diesel vehicles. Contracts Johnson Matthey Catalysts supplies to all models of Maruti Udyog. The company meets about 80% of Marutis total requirements. In 2005, Johnson Matthey started supplying to Mahindra & Mahindra for the Scorpio CRDi model. Mahindra has now stopped producing all other variants of the vehicle and the CRDi version is the only one available. The company supplies catalytic converters to the Ford Ikon model. 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. This contract may lead to more lucrative ones in future as the same engine (Fiat 1.3-litre Multijet) may be manufactured by the Tata-Fiat alliance at their plant, leading to additional volumes.
Plants
Gurgaon (Haryana)
Sales
Employees
c. 90
New Product Developments Johnson Matthey Catalysts does not invest on R&D
in India. All product development is sourced from the parent company.
Financial Overview Johnson Matthew's estimated sales in the financial year 2008 were INR 1.3bn (20.64m, 31 March 2008). The company has been growing at a
193
CAGR of about 10% over the last three years.
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. 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.
194
Kalyani Forge
Precision forgings and forged components
Address
Kalyani Forge Ltd, Gat No. 611-614, Koregaon Bhima, Tehsil Shirur, 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. Kalyani Forge supplies to both automotive as well as non-automotive sectors.
Kalyani Forge was established in 1979, as a niche forge shop incorporating press technology for small forgings. In 1981, the company started commercial production of hot forgings. Kalyani Forge established a machine shop in 1995 and metal forms division in 1999. Kalyani Forge has divided its operations into four segments, Product Engineering Division, Hot Forging Division, Metal Forms Division and Precision Auto Components Division. Kalyani Forge's domestic customers include Ashok Leyland, Bajaj Auto, Cummins India, Force Motors, GKN Driveline India, Hero Honda Motors, Ilgin Auto, Mahindra & Mahindra, Tata Motors, TVS Motor Company and ZF Steering Gears. Its international customers are Arvin Meritor, Cummins, Duraldur, Knorr-Bremse, Lombardini, Metaldyne, Sata and VCST.
Tel: +91 21 3725 2335 Fax: +91 21 3725 2756 Internet: http://www.kalyaniforge.com Senior Officers
Dr N A Kalyani, Chairman C Mohan, COO Rohini G Kalyani, Managing Director Milind Shenolikar, VP, International Business & Marketing
Recent Developments Products

Cold precision forgings, gears, sheet metal components, spline shaft, warm precision forgings Corporate strategy In recent years, Kalyani Forge has grown its sales significantly with a surge in vehicle demand in India, however over the last five years its margins have halved from 8.73% to 4.9% with increase in input costs. To counter the pressure on its margins, Kalyani Forge integrated its forging and machining operations and ramped up its machining capacity. Further, the company added a die-forging unit. Investments In 2006, Kalyani Forge opened a forging unit for production of die forgings and machined components at Sanaswadi, near Pune (Maharashtra) at an investment of INR250m (4.43m, 31 March 2005). Contracts Kalyani Forge is a single source supplier of specific forgings to Lombardini, Same Deutz (Italy), Trelleborg Automotive (UK & Germany), Hero Honda, Tata Motors, TVS Motor and GKN Driveline India. Certifications Kalyani Forge is accredited with TS16949, QS 9000 and ISO 9002 certifications.
Plants
Maharashtra
Sales
INR1.9bn (30.10m, 31 March 2008), (Year to 31.12.08)
Employees
c. 602 (2008)
Financial Overview
In the financial year ended 31 March 2008, Kalyani Forge reported sales of INR1.9bn (30.10m, 31 March 2008), an increase of 4.24% from INR1.83bn (31.56m, 31 March 2007) in 2007. Profit before tax for the period was reported as INR148m (2.34m, 31 March 2008) and net profit as INR94.2m (1.49m, 31 March 2007). Year Gross sales, INR m 1,904.80 1,827.20 1,480.70 1,285.00 Operating profit, INR m 266.7 258.8 229.8 209.1 Profit before tax, INR m 148 168.1 162.6 158.3 Net Profit, INR m 94.2 110.5 103.4 102.9
2008 2007 2006 2005
195
2004
1,174.50
195.5
147.4
102.5
Year
Gross sales, m 30.10 31.56 27.57 22.74 21.94
2008 2007 2006 2005 2004
Net Profit, m
1.49 1.91 1.93 1.82 1.91
Outlook
By 2005, Kalyani Forge was positioned to earn a significant profit margin following extensive cost reduction measures. However the rising input costs till 2008 have halved its margins. Going ahead, 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.
196
Kalyani Lemmerz
Steel wheel rims
Address
Kalyani Lemmerz Ltd, Gat No.635, Village Kuruli Chakan, Tal: Khed Pune - 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.
Kalyani wheels was established by the Kalyani Group as a part of its diversification strategy. The company initially had a technical alliance with Lemmerz Werke, which subsequently turned into an equity alliance. The company manufactures wheel rims for commercial vehicles and utility vehicles. Presently, Hayes Lemmerz holds 85% stake in the company while the balance is held by Kalyani Group. Engineering & development activity at Kalyani Lemmerz is supported by Hayes Lemmerzs German design center. Kalyani Lemmerzs Pune plant has an installed capacity of 2m wheel rims per annum. Kalyani Lemmerz manufacturers wheel rims using the flat stock, cold pressing and flow forming method pioneered by HayesLemmerz.
Tel: +91 2135 305 100/ 305 251/ 52/ 59 Fax: +91 2668 262427 Internet:
http://www.bharatforge.com/company/kal yani_Lemmerz_ltd.asp
Senior Officers
Santosh Wagh, Manager- marketing Rajendra Shah Darshan, Finance controller
Recent Developments
Corporate strategy In recent years, 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, Volkswagen and existing operations of Tata and Fiat in the Pune cluster, where it is located. To improve its margin, Hayes Lemmerz is trying to achieve an 80:20 split between its domestic and export sales. Margins in export orders are usually higher than those in the high-volume domestic supply programs. Investments In February 2007, Hayes-Lemmez announced investment at its present facility to manufacture passenger car wheels from December 2008 onwards. The plant will begin with an installed capacity of 2m wheels per annum expandable to 4m units per annum as the market matures.
Products
Steel wheel rims
Plants
Pune (Maharashtra)
Sales
NA
Employees
c. 250 (31 March 2008)
Financial Overview
Kalyani Lemmerz is privately held and does not publish its financial statements.
Outlook
Over the last five years, several wheel manufacturers have announced capacity expansions to tap supply opportunities in the passenger car and commercial vehicle segments. 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.
197
Kinetic Engineering
Engine & transmission components
Address
Kinetic Engineering Limited, D1 Block, Plot No. 18/2, Chinchwad, Pune- 411 019
Tel: + 91 20 2747 4301 -5 Fax: + 91 20 2747 7227 / 2747 5843 Internet: http://www.kineticindia.com Senior Officers
AH Firodia, Chairman MK Khera, Managing Director
Kinetic Engineering has traditionally been a vertically integrated two wheeler manufacturer with captive manufacturing & development capability of critical components. The company has recently entered the auto components space with supplies from its two plants in the Western auto cluster.
Facing acute cash crunch and mounting losses in its two wheeler manufacturing business, 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. 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. Earlier the company had setup Kinetic Auto Systems as a strategic business unit to tap opportunities in the auto component space. Kinetics client base includes, Bombardier Recreational Products USA, Bombardier, Carraro India, Force Motors, GKN Rockford, Husqvarna, MV Augusta- Italy, Piaggio, Tata Motors, Tomos- Slovenia and Visteon India
Products
AC generators, electronics, engines, gear boxes, gears, shafts, starter motors
Plants
Ahmednagar (1), 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. Presently Kinetic is focusing on a product portfolio consisting of small engines for two wheeler, recreational and outdoor applications and gearboxes for two wheelers, recreational and outdoor products, cars and light commercial vehicles. 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. In number terms, the company has setup a 100% growth target by 2010 with targeted revenues of INR5bn (79.4m, 31 December 2008). In the domestic market the company is focusing on high volume supplies to bolster its presence in the market. 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. Presently Kinetic derives 20% of its revenues from exports. Acquisitions and divestments In December 2006, Kinetic Engineering divested its Two Wheeler manufacturing Unit, Supa Undertaking on slump sale basis to Kinetic Motor Company Limited (KMCL) for a consideration of INR535m (9.19m, 31 December 2006). KMCL also allotted redeemable preference shares worth INR300m (5.16m, 31 December 2006) to Kinetic Engineering. Contracts Kinetic supplies gearboxes to Bombardier Recreational Products USA. Kinetic has a contract to supply 50% of all gearboxes on the Tata Nano. Certification Kinetic is accredited with TS 16949 status for manufacturing systems.
Sales
INR832.2m (13.22m, 31 December 2008)
Employees
c. 1,200 (31 March 2008)
New Product Developments In 2006, Kinetic developed engines for Carraro India and Visteon India and gearboxes for Tata Motors and Force Motors.
198
Financial Overview For the 15 month period ended financial year ended 31
December 2008, Kinetic Engineering registered sales worth INR832.2m (13.22m, 31 December 2008). For the financial year under review Kinetic registered a net loss of INR258.4m (4.10m, 31 December 2008). Kinetics financials are not comparable to previous results due to the restructuring in the operations. Year Gross sales, INR bn 832.2 Gross sales, m 13.22 Operating profit, INR m 27.5 Operating profit, m 0.44 Profit before tax, INR m (256.5) Profit before tax, m (4.07) Net Profit, INR m (258.4) Net Profit, m (4.10)
2008 Year
2008
Outlook Kinetics transformation bid from a two wheeler manufacturer to an auto

component supplier is beginning to take shape. The companys proven ability to supply fully assembled modules will help Kinetic quickly gain momentum in the components space. At the same time a quick flow of orders has helped the company hold guard against adverse financial situation, though the turn-around is yet to be completed.
199
Krishna Maruti
Interior trims and seats
Address
Krishna Maruti Limited B-5, Chirag Enclave, New Delhi-110 048
Tel: +91 124 2371650 Fax: +91 124 2371618 Internet: http://www.krishnamaruti.com Senior Officers
Ashok Kapur, Chairman and Managing Director Sunandan Kapur, Joint Managing Director Manish Gupta, Marketing Head
Krishna Maruti is a major supplier of interior trims and seats to Maruti Udyog. The company claims to have a third of the market share in seats, armrests and headrest categories in the country. With the acquisition of Mark Auto in 2005, the company entered into a new business area of sheet metal components and has secured a strong alliance for expanding the business.
Krishna Maruti Limited (KML) is a Maruti associate vendor set up in 1994 to cater to the special needs of Maruti. Both Maruti and Suzuki have separate stakes in the company, amounting to 15.80% and 29.20% respectively. Indian promoter Ashok Kapur holds 37.5% stake in the joint-venture. Krishna Maruti has six manufacturing facilities. The most crucial of them is located close to the Maruti plant in Haryana and undertakes seat manufacturing. It has an installed capacity of 1200 seats per day. The company has the following business units: Krishna Maruti Ltd. (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, fuel tanks and front suspension. SKH Auto Components manufactures seat trims. Krishna Toyo Ltd. manufactures a large number of inside and outside rear view mirrors for Honda Siel Cars India Ltd and Maruti Udyog Ltd. The unit enjoys a 35% market share. Krishna Pads Ltd. manufactures headrests and armrest assemblies for all models of Maruti car. The company makes seats for the Maruti 800, Omni, Zen, Alto and Esteem and has a 59-percent share in Maruti's seats business. Krishna Maruti has a market share of 36% each in seats, armrests and headrest; 25% each in mirrors and trims; 20% in door trims and a 12% share in roof liners in India. Its major customers include Maruti Udyog Ltd., Honda Siel, GM and Ford.
Products
Arm rest assemblies, Door trims, headrest assemblies, moulded carpets, roof headliners, rear view mirrors, seating systems, seat trims
Plants
Binola (2), Gurgaon (2), Manesar (2)
Sales
INR12bn (189.6m, 31 March 2008)
Employees
c.1200 (31 March 2008)
Recent Developments
Corporate strategy Krishna Maruti has been one of the most aggressive vendors in the Maruti vendor group. The company has successfully added a number of nonMaruti clients to its clientele list and has bagged significant business in North America and Europe. To this end, 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. On a standalone basis, KML now derives 70-percent of its revenues from Maruti Suzuki. The group has been diversifying into new areas, adding new products to its portfolio. Sister concern SKH Metals has formed a joint venture with Magnetti Marelli for exhaust systems and other alliances are also being initiated, this includes joint ventures for chassis systems, sheet metal components and injection mouldings.
200
In recent years the company has worked at backward integration to bring its suppliers closer. It set up Krishna Pads Ltd in 1996 to manufactures head rest and arm rest assemblies and is the single source for Krishna Maruti. Krishna Pads is also India's largest manufacturer of head rest arm rest assemblies. Krishna Maruti also started Krishna Trims Ltd in 1996. The company claims to be India's largest seat cover manufacturing company with a capacity of 200,000 sets per annum. Again most of the production is supplied to KML. Krishna Maruti owns 10% each in Krishna Pads and Krishna Trims. In 2005, Krishna Maruti acquired Mark Auto, another Maruti group supplier. 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. With the acquisition, KML also got access to other customers like GM India. Joint-ventures Krishna Maruti has a technical collaboration with SNIC which is a joint venture between Suzuki and NHK for seats. There is another joint venture with Suzuki Kasai for Door trims. The tie-up for headliners is with Groupo Antolin where the Spanish giant holds 50% stake. The company also has a technical cum financial tie-up with Toyo for mirrors. Toyo holds 50% stake in Krishna Toyo. Acquisitions In 2005, Krishna Maruti acquired Mark Auto, another Maruti-Suzuki family supplier. Mark Auto manufactures a number of sheet metal components including fuel tanks for many Maruti vehicles. The company supplies critical sheet metal components and assemblies like fuel tanks, axle housings, suspension frames, engine mountings and is also supplying exhaust systems, mufflers for gasoline engines and aluminised tubes for automotive exhaust systems. Apart from Maruti, Mark Auto also supplies to GM India, Fiat India and Delphi and various Maruti associate vendors like Jay Bharat Maruti, Caparo Maruti and Sona Steering. Investments In July 2008, Krishna Maruti announced that it had been mandated by Chrysler for supplying seats to the Jeep Wrangler program. KML will ship sub-assemblies to Ohio and assemble them at a greenfield manufacturing facility at Ohio. Under the program KML would supply seats worth INR 4bn (63.2m, 31 July 2008) to Chrysler annually. In volume terms, the company would be supplying to 120,000 units of Jeep Wrangler annually starting June 2009. KML will replace Johnson Controls as the seating systems vendor to the Jeep Wrangler program. Contracts In July 2008, Krishna Maruti announced that it had been mandated by Chrysler for supplying seats to the Jeep Wrangler program. Krishna Maruti supplies seats to the Maruti Suzuki SX4 program. Krishna Maruti supplies seats to the Maruti Suzuki Zen Estilo program. Krishna Maruti supplies seats to the Maruti Suzuki A-Star program. Krishna Maruti supplies seats for the ICML Rhino Rx. Krishna Maruti makes seats for Maruti 800, Alto, Omni and Wagon R. Krishna Maruti also manufactures door trims for the Alto, Wagon R and Zen Estilo. Krishna Toyo Ltd. further supplies mirrors for all models in the Maruti stable and certain models of Honda Siel. The company also supplies carpets for the Alto and the Wagon R. Further, Krishna Maruti supplies injection moulded plastic parts to Honda Motorcycles & Scooters India. Certifications Krishna Maruti has been conferred with the Deming Prize for quality, the only seat manufacturer in the world to win the award. The company has also been certified with TS 16949, ISO14000 and OHSAS 18000 certifications. New Product developments Krishna Maruti has a dedicated R & D centre set up with an investment of INR66.0m. The company claims that the centre is capable of conducting tests as per
201
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. The set-up includes Vibration Test Rig, Free Flight Impact Test Rig and Static/Dynamic Strength Test Rig. This centre is capable of not only testing as per International Standards but can also issue Test Certificates to other seat manufacturers. This test centre can also perform tests for non-automotive components for endurance and repeatability. 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.
Financial Overview In the financial year ended 31 March 2008, sales of Krishna Maruti group totalled INR12bn (189.6m, 31 March 2008). Being a privately-held company, 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. Having de-risked its client base significantly, Krishna Maruti Groups plan of entering new product areas is a bold challenge with an uncertain economic situation. Despite this, Krishna Maruti has positioned itself as a strong supplier with the Jeep Wrangler contract, a first for any Indian interiors manufacturer.
202
LG Balakrishnan
Automotive chains and metal formings
Address
LG Balakrishnan & Bros Ltd 6/16/13,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 claims a market share of 70% for drive chains supplied to OEMs and 50% for drive chains supplied to the aftermarket. The company exports about 15% of its sales to Europe and USA.
The company came into being in 1937 as a transport operator and bus/truck body builder. In 1966, the company initiated timing chain manufacturing operations under an alliance with Germany based John Winklehofer. After the collaboration, LGB became the first Indian company to supply timing chains to four-wheeler OEMs in India. LGB entered into steel strips and wire rods manufacturing in the 70s. The company added three subsidiaries, Combined Industrials Ltd, Elgibi Engineering Works and Super Engineers Limited during the 70s and the 80s. Elgibi Engineering Works was later merged with the company. During the late 80s, 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. The company markets its chain under the brand name "Rolon". In the 90s the company entered the hot, cold and warm forming segment. In 1994, LGB established a chain manufacturing facility at Vaiyampalayam (Tamil Nadu). Subsequently the company ventured into rubber belts, aluminium bus bodies and wind energy systems. In 1997, LGB Industries and the steel division of Elgibi Automotive Services was amalgamated into LGB. Recently, LGB began its cold and hot forging operations. In June 2008, Reynold acquired 75% stake in LGBs chain business. Presently the company classifies its operations under three strategic business units: Transmission: Transmission contributes nearly 56% to its total sales. Metal forming: Metal forming accounted for 17.6% of total sales of 2005. Others: Other operations accounted for around 16% of total sales. Forging & Machining businesses which accounted for 25% of 2008 sales were restructured under a new company LGB Forge in 2008.
Tel: +91 422 2532325 Fax: +91 422 2532333 Internet: http://www.lgb.co.in Senior Officers
B Vijayakumar, Managing Director PS Balasubramanian, Joint Managing Director LG Varadarajulu, Director K Vasudevan, Vice President- Technical A James Chandra Mohan, Vice PresidentCommercial P Prabhakaran, Vice President- Marketing
Products
Automotive: Automotive kits, belts, fine blanking products, forged products, machined components, motorcycle and moped chains, sprockets, tensioners, timing/engine mechanism chains, and wire drawing
Plants
Automotive: Tamilnadu (7) Karnataka (3)
Sales
LGB's domestic OEMs and Tier-I customers include Bajaj Auto, Force Motors, Hero Honda, HMSI, Kinetic Engineering, TVS Motors and Yamaha. The company supplies fine blanking products to Aditya Auto, Bajaj Auto, Brakes India, Hero Honda, Kalyani Brakes, Kinetic Engineering , Larsen & Toubro, LML, Mico and TVS Motors. LGB supplies forged components to Brakes India, Delphi, Denso, GKN, Visteon, Kalyani Brakes, Lucas TVS, Mico, Rane and Sona Steering. LGB exports its products to Australia, Bangladesh, Colombia, France, Germany, Greece, Hong Kong, Indonesia, Iran, Italy, Japan, Luxembourg, Malaysia, New Zealand, Poland, Puerto Rico, Singapore, Slovenia, South Africa, South Korea, Sri Lanka, Turkey, UAE, UK, Uruguay, USA and Vietnam.
Employees
c. 2,050 (Year to 31 March 2008)
Recent Developments
Corporate strategy In recent years LGB has made substantial improvements in forging and machining businesses, following which the company has spun off these operations into a special vehicle to facilitate strategic initiatives including acquisitions. The company has also made various acquisitions and announced investments into new plants to grow its blanking business. LGB has listed exports a principal growth driver and has plans to establish itself as a leading player for fine
203
blanking and forged components akin to its leadership in chain exports. The recent sale of LGBs chain division to Reynold will help the business in becoming a principal source for Reynolds global sourcing. Acquisition In April 2005, Apten forgings Ltd a wholly owned company of LGB group was merged with LGB. In June 2004, LGB acquired MGM Industries, Swathe Gears and Heat Treaters. The companies are engaged in hot forging operations. Investments In March 2006, LGB announced its plan to invest INR1.5bn (26.6m, 31 March 2005) in setting up new facilities and capacity expansions. It announced investing into a new forging plant in Coimbatore (Tamil Nadu) with forging machinery imported from Korea and Japan. The plant will commence operations by end 2006. Further, LGB plans to establish two chain plants in Pune (Maharashtra) and Uttaranchal. The chain plants will begin operations by end 2007. The company has setup a new facility for producing cold forgings at K Palayam (Tamil Nadu). Divestment In July 2004, LGB decided to dispose substantially its textile, motor sales and service, bus body division, motor sports division, power tools division, engineering division, distribution division of MICO, Blaupunkt, Elf products and pre-cured and retreading operations. The company completed the divestment during financial year 2005. Certification LGBs fine products and forging division is certified ISO/ TS 16949 & ISO 9001 status. The Annur (Tamil Nadu, India) based plant is ISO/ TS 16949 and ISO 9001 certified. The Vaiyampalayam (Tamil Nadu, India) plant is accredited ISO/TS 16949 & ISO 9001 certificates. Gudalur (Tamil Nadu, India) based industrial chains facility is ISO 9001 certified Mysore (Karnataka, India) based drive chain plant is accredited ISO/ TS 16949 & ISO 9001 status. LGBs machined component division is ISO 9001 certified. LGBs rubber belt division and wire drawing division have also been accredited ISO 9001 status. Infrastructure LGBs fine products and forging division undertakes the production of fine products, cold forged components and special chains. The facility has a forging capacity of 3m pieces per annum, fine product capacity of 46m pieces per annum and chain manufacturing capacity of 2.5m feet per annum. The Annur (Tamil Nadu, India) based plant is engaged in the production of timing and drive chains. The plant has an installed capacity of 20m feet per annum. The Vaiyampalayam (Tamil Nadu, India) plant has a production capacity of 20m feet per annum of drive chains. Gudalur (Tamil Nadu, India) based industrial chains facility has an installed capacity of 10m feet per annum. Mysore (Karnataka, India) based drive chain plant has a production capacity of 10m feet per annum. Subsidiary Apten Forgings has an installed capacity of 6000 tonnes per annum for the production of hot and warm forged components. LGBs machined component division has an installed capacity of 100 tonnes per month for the production of machined and precision components. LGB has additional government certified accreditation as an export house. LGB operates a government certified R&D facility with CAD/CAM capabilities.
204
The company conducts in-house manufacturing of critical components. An inhouse steel rolling division produces cold rolled steel strips, wires and strips with profiles. Heat treatment facilities like sealed quench furnace, pit type gas carburising furnace, rotary furnace, induction hardening machine, continuous mesh belt furnace, endo gas generator and bell type annealing furnace. LGB maintains a tooling division equipped with CNC wire cutting, spark erosion and Mikron CNC Boring machines. The company has initiated work on an application engineering cell which oversees the designing, manufacturing and supply of chains for special applications. LGB houses a machine building facility for in-house construction of special purpose machines.
Contracts In November 2005, LGB won a supply contract worth 2m from Germanybased Robert Bosch to supply flanges for their CRDi Systems. The company exports hydraulic drive to Parker Hannifin.
Financial Overview
In the financial year ended 31 March 2008, LGB reported net sales worth INR5.49bn (86.88m, 31 March 2008) an increase of 15.6% from previous year's figure of INR4.76bn ( 82.13m, 31 March 2007). Operating profit was reported at INR750.74m (11.86m, 31 March 2008), 10.99% higher over previous year's operating profit of INR843.43m (14.57m, 31 March 2007). Net profit decreased by 35.27% to INR148.6m (2.35m, 31 March 2008) in 2008 from INR229.6m ( 3.97m, 31 March 2007) in 2007. Year Net sales, INR m 5,498.73 4,755.81 4,697.45 4,083.61 2,983.37 Net sales, m Operating Profit, INR m 750.74 843.43 608.3 553.37 409.99 Operating Profit, m 11.86 14.57 11.33 9.79 7.66 Profit Before Tax, INR m 180.53 369.9 221.5 240.71 200.26 Profit Before Tax, m 2.85 6.39 4.12 4.26 3.74 Net Profit, INR m 148.62 229.6 135.94 164.92 136.1 Net Profit, m 2.35 3.97 2.53 2.92 2.54
2008 2007 2006 2005 2004 Year
2008 2007 2006 2005 2004
86.88 82.13 87.47 72.28 55.73
Outlook
Having divested its non-core subsidiaries LGB has restructured its remaining businesses. India is steadily acquiring the role of a global two wheeler hub with annual exports crossing one million units along with strong domestic growth. These trends will present LGB with significant growth opportunities.
205
Lucas TVS
Automotive electricals
Address
Lucas-TVS Limited AALIM Centre, 2nd Floor, No. 82, Dr. Radhakrishnan Salai, Mylapore, Chennai 600 004 India
Lucas-TVS is a joint-venture between Lucas PLC and the TVS group. The company is a leading manufacturer of auto electricals in India. It operates three plants in the country and supplies to all major OEMs.
Lucas TVS was established in 1961 as a joint-venture between Lucas Industries Plc. (UK) and T V Sundaram Lyenger & Sons (TVS) (India) for the manufacture of automotive electrical systems. Lucas-TVS caters to all segments of the Automotive industry including passenger cars, commercial vehicles, tractors, jeeps, twowheelers and off-highway vehicles. Lucas-TVS has five divisions: Auto Electricals: manufactures auto electrical products including starters and horns. The company has an inhouse engineering centre and it uses cellular manufacturing systems for flexibility in changing production between products. 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. India Nippon Electricals Ltd (INEL) was established in 1985 as a jointventure between Lucas Indian Service and Kokusan Denki Co. Ltd. (Japan) to manufacture electronic ignition systems for two-wheelers and portable power generators. 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), to manufacture a range of headlamps, rear combination lamps and various other combination lamps for four-and two-wheeler applications. Its plant is situated 40 kilometres away from Chennai in Tamil Nadu. Lucas India Service (LIS), formed in 1930, is engaged in sales and service of auto electricals and fuel-injection equipments manufactured by Lucas-TVS. The company has four regional offices one each in Delhi, Mumbai, Chennai and Kolkata and 22 branch offices covering almost all the states in the country. The company has 2,000 outlets spanning the entire length and breadth of the country. The company's domestic customers include Ashok Leyland, Force Motors, Bharat Earth Movers, Cummins India, Eicher Motors, Escorts, Ford India, General Motors India, Greaves Tractors, Gujarat Tractors, Hindustan Motors, HMT, Hyundai Motors (India), Ind Auto, Kirloskar Oil Engines, L&T Tractors, Mahindra & Mahindra, Maruti Udyog, Punjab Tractors, Ruston & Hornsby, Simpsons, Swaraj Mazda, Tata Cummins, Tractors & Farm Equipments, Tata Motors. The company's export customers include Delco Remy, Helwan Diesel Engine Company, Luca Electrical (UK), Prestolite Electricals and UK & USA aftermarket.
Tel: +91 44 2811 0063,

2811 0074 Fax: +91 44 2811 5624 Internet: http://www.lucas-tvs.com
Senior Officers
TK Balaji, CEO and Managing Director A G S Singh, Sr Vice President, Marketing N Ravichandran, President, Operations
Products
Conventional bulbs, electronic relays, halogen bulbs, head lamps, horns, ignition coils, solenoid switches, starter motors, tail lamps, two-wheeler batteries
Plants
Haryana , Pondicherry, Tamil Nadu
Sales
INR 10.35bn (160m, 31 March 2008)
Employees
1,800 (March 2008)
Recent Developments
Corporate strategy Lucas TVSs leadership position is now being challenged by new entrants. 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. 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. To this end, Lucas TVS is expanding its footprint in Iran and China. In the domestic market the company is expanding its product offerings. This is highlighted by the recent acquisition which brought additional electrical components to the companys offerings.
206
Lucas TVS foresees increased local design and development of vehicles and is bracing itself for the change by strengthening its design and development capabilities. Acquisitions In August 2008, Lucas TVS bought Indrad Autos assets from Sical Logistics near Chennai for a consideration of INR146.9m. Indrad manufactures auto electricals besides other components under technology agreements which have been retained by Sical through Indrad. Joint-ventures In 2005, Lucas-TVS announced setting up of a plant in Iran in a joint-venture with FG Industries (Iran) for the manufacture of electrical equipment. India Japan Lighting division is a joint-venture between Lucas-TVS and Koito Manufacturing Company Ltd. For the manufacture of various lamps. India Nippon Electricals Ltd is a joint-venture between Lucas Indian Service and Kokusan Denki Co. Ltd. (Japan) for electronic fuel-ignition systems. Investments Lucas-TVS invested INR60m (1.06m, 31 March 2005) to establish a reliability assessment laboratory. The company announced an investment of INR400m (7.08m, 31 March 2005) in a new facility at Pune (Maharashtra). Certifications In 2007, Lucas TVS was awarded the JIT Grand Prix from Japans JIT Management Laboratory Company for the second time. In 2004, Lucas-TVS was awarded the Deming Application Prize for achieving global quality standards in auto electrical parts. New Product Developments Lucas-TVS is currently developing gear reduction transfer motors with a range from 0.8kw to 9kw. Currently, the company supplies gear reduction transfer motors of a range up to 2kw. The company plans to introduce the new range for passenger cars, commercial vehicles and heavy trucks in 2008. The company is also developing internal fan alternators of very low noise and high efficiency. The company is working towards expanding its internal fan alternators range to 150amp from the present 120amp. Lucas-TVS is developing a side mounted integrated starter-alternator that would help cut down weight and eliminate the ring gear. The system is expected to be available in a synchronized form with the start-stop system which was launched by the company in 2006.
Financial Overview
In the financial year ended 31 March 2008 Lucas-TVS recorded sales worth INR 10.35bn (160m, 31 March 2008). Lucas-TVS is a privately held company of the TVS Group.
Outlook The entry of a global electrical component supplier in India will increase
competition for Lucas-TVS, especially at a time when a host of OEMs are planning their entry in the Indian market. Lucas-TVS plans to expand its business by acquiring plants overseas wherever possible and along with setting up greenfield units. Lucas TVS has expanded its production base to Iran where it now operates a manufacturing facility. The company has also increased its sales activities in Malaysia, China, Thailand and West Asia.
207
Lumax
Lighting systems
Address
Lumax Industries Limited B-86, Mayapuri Industrial Area, Phase-I, New Delhi- 110064, India
Lumax is amongst India's leading automotive lighting systems company with nearly 60% market share. Lumax operates through seven plants and supplies all major vehicle manufacturers in the country.
Lumax began as a trading company in 1945 but today is focused on production of automotive lighting systems. Recently, the company hived off its plastic moulding, mirror and filer production businesses to focus on its core business. Indian promoters hold 35% equity in Lumax Industries, Japan based Stanley Electric holds another 35%. Lumax customers include Ashok Leyland, Bajaj Auto, Ford India, General Motors India, Hero Honda, Hindustan Motor, Honda Motorcycles and Scooters, HondaSiel, Hyundai Motor India, Kinetic Motor, Mahindra & Mahindra, Maruti Suzuki, Swaraj Mazda, Tata Motors, Toyota Kirloskar and Yamaha Motors. Maruti Udyog is Lumax's largest customer. The company began exports in 1995 with its contract of an interior light for a GM Buick model. Over the supply period of five years, Lumax shipped 2.5m units to GM.
Tel: +91 11 28111777 Fax: +91 11 28113631 Internet: http://

www.lumaxindustries.com
Senior Officers
DK Jain, Chairman & Managing Director Deepak Jain, Executive Director Anmol Jain, Executive Director Naval Khana, Group Finance Head
Products
Auxiliary lamps, headlamps, sundry lamps, tail lamps
Recent Developments
Corporate Strategy Lumax has recently witnessed a hike in equity participation by Stanley Electric. The company is now integrating itself with Stanleys global supply network. Lumax plans to take its exports up from 5% presently to 10% of sales by 2010. Hence, the company is planning plants in the vicinity of ports and is negotiating for more business from clients in North America and Europe, particularly off-highway supplies. Lumax is considering inorganic options for establishing a footprint in Europe, especially eyeing companies with inherent strength in technology. The company is targeting sales worth INR10bn (172.7 m, 31 March 2007) by 2010. Joint-ventures Lumax has a technical arrangement and equity participation with Stanley Electric (Japan). Lumax also has technical alliances with Valeo, Automotive Lighting (Germany) for product specific assistance. Lumax shares a joint-venture with Samlip (Korea) under SL Lumax with a facility in Chennai (Tamil Nadu). Hyundai Motor India sources its requirements from the facility. Investments In 2007, Lumax announced two new facilities at Pant Nagar (Uttaranchal, India) for supplies to Bajaj and Tata Motors. Also in 2007, Lumax announced a new facility at Haridwar (Uttaranchal, India) for supplies to Hero Honda. Also in 2007, Lumax announced a new plant at Singur for supplies to Tata Motors. This is likely to be shifted with Tata Nanos plant to Gujarat. In 2005, Lumax commissioned a new plant in Pune (Maharashtra, India). The company expects to benefit from lower transportation charges and increased export potential from the facility. The capacity decongested by the move at North Indian facilities is being used to cater to rising orders from existing customers. In 1998, Lumax started a facility in Gurgaon (Haryana) with a capacity of 2,500 sets per day for four-wheelers and 2,000 sets per day for two wheelers.
Plants
Haryana (2), Maharashtra (3), Tamil Nadu, Uttaranchal (3),
Sales
Lumax Industries : INR5.08bn (80.69m, 31 March 2008) (Year to 31.03.08)
Employees
Lumax Industries : c. 1,250 (2007)
208
Contracts Lumax supplies headlamps and tail lamps for the Tata Indica and the Indigo models. Lumax supplies headlamps and tail lamps for the Honda Accord model. SL Lumax is the preferred supplier to Hyundai Santro Xing program. SL Lumax supplies to GM India for the Tavera program. Certifications The Gurgaon based plant operated by Lumax has been accredited with ISO 14001 and TS 16949 status. The company has been accredited with ISO 9002 and QS 9000 status. 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. The company also has a tool design and manufacturing centre with CNC machines. Equipment calibration facility and profile projector. Die-spotting Automatic bead laying Ultrasonic welding Manufacturing facilities for polycarbonated lenses with silicon hard coating.
Financial Overview In the financial year ended 31 March 2008, Lumax Industries recorded sales of INR5.08bn (80.69m, 31 March 2008), a decrease of 5.09% compared to INR5.35bn (92.46m, 31 March 2007) in 2007. Profit before tax for the financial year 2008 was recorded as INR201.95m (3.21m, 31 March 2008), decreasing by 27.9% compared to INR280.10m (4.84m, 31 March 2007) in 2007. Net profit for Lumax industries also decreased substantially in 2007 decreasing 22.63% to INR141.47m (2.25m, 31 March 2008) compared to INR182.84m (3.16m, 31 March 2007) the previous year. The sluggish performance was largely attributed to lower sales to two wheeler OEMs and slower than anticipated growth in passenger car sales.
Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR m 5,081.05 5,353.84 4,120.68 2,946.64 2,308.83 Gross sales, m 80.69 92.46 76.73 52.16 43.13 Operating profit, INR m 442.82 491.04 368.03 357.74 306.88 Operating profit, m 7.03 8.48 6.85 6.33 5.73 Profit before tax, INR m 201.95 280.10 138.48 163.67 108.29 Profit before tax, m 3.21 4.84 2.58 2.90 2.02 Net Profit, INR m 141.47 182.84 92.27 71.99 91.86 Net Profit, m 2.25 3.16 1.72 1.27 1.72
Outlook Lumax is looking at more export business and eyeing an overseas

acquisition to strengthen its technology. While exports is its major trigger for growth, the domestic market which will earn it steady sales. 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. Stanleys increased equity participation in the company has increased the companys ability to service supply programs through Stanleys global network.
209
Lumax Automotive Systems

Oil/ Air filters and cleaners, rear view mirrors, plastic moulded auto components
Address
Lumax Automotive Systems Ltd B-86, Mayapuri Industrial Area New Delhi- 110 064 India
Lumax Automotive Systems is the de-merged entity of Lumax Industries. The company is a leading supplier of air filters and automotive rear view mirrors.
In 2003, Lumax Industries demerged its divisions to focus on its core sector Lighting - under Lumax Industries and structured the mirrors, filters and plastic parts under Lumax Automotive Systems. Lumax Automotive Systems currently operates eight plants, six in Haryana and two in Maharashtra. In the financial year 2005, the company accounted for 37.5% of its sales from the filters business, 21.7% from rear view mirrors business and 36% from its plastic-moulded auto components business. Lumax Automotive Systems' customers include Ashok Leyland, Automotive Coaches and Components, Bajaj Auto, Force Motors, Claas India, Denso, Eicher, Escorts, Fiat, Ford, GM, Godrej, Greaves, Hero Honda, Hindustan Motors, HMT, Honda SEIL, Hyundai Motors, Indian Railways, International Tractors, Kinetic Group, Kirloskar Oil Engines, Krishna Maruti, L&T Case, L&T John Deere, Mahindra & Mahindra, Maruti Udyog, Mitsuba, New Holland, Piaggio, Reva Electric Car Co, Royal Enfield, Scooters India, Simpson & Co., Swaraj Mazda, Tata Motors and Tatra Trucks.
Tel: + 91 11 2811 1777, 5103 1267 Fax: + 91 11 2811 6455 Internet: http://www.lumaxauto.com Senior Officers
UK Jain, Chairman & Managing Director Nitin Jain, Executive Director VK Talwar, CEO
Products
Automotive mirrors, air filters, oil filters, plastic components
Plants
India: Haryana (6), Maharashtra (3)
Recent Developments
Corporate strategy Lumax Automotive Systems is trying to pool in strategic partners to address various supply opportunities in India. Of the three business segments in which the company operates, plastic components are still independent of a strategic alliance. The company has hinted that it is looking at expanding the scale of its plastics business trough a strategic alliance. Recently, 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 shift from foam filters to paper filters helped the company in establishing a lead market for its products with various supply programs. The company has received siginficantly large orders for supplies from two wheeler manufacturers and is expecting more orders from large players like Maruti Udyog. Lumax Auto has been targeting a 80:20 split in revenue inflows between domestic sales and exports by 2010. Joint-ventures In 2005, Lumax signed a technical agreement with Toyo-Roki Manufacturing Company for its filter production operations. Also in 2005, Lumax Automotive Systems inked a deal with Magna Donnelley in a 74:26 joint-venture, for the production of rear view mirrors for passenger cars, commercial vehicles, two-wheelers and three-wheelers with an installed capacity of 0.5m sets per annum. The deal encompasses two mirror manufacturing facilities operated by Lumax. Investments Lumax Automotive Systems has planned an investment worth INR 160m ( 2.83m, 31 March 2005) which includes an expansion for the rear view mirror
Sales
INR 1000.94m ( 15.8m, 31 March 2008) (Year to 31.03.08)
Employees
c. 705 (Year to 31.03.2008)
210
business. In 2005, Lumax Automotive Systems started expanding its air-filter capacity to meet the spurt in demand. The expansion is scheduled for completion in 2008.
Contracts Lumax is the sole supplier of filter systems to Suzuki and Honda in India. Lumax Magna Donnelly Automotive Mirrors supplies rear view mirrors for the Maruti Suzuki Swift. The mirror is presently being imported as CKD and is expected to go be localized by 2007. The company has also been listed to supply mirrors for the Maruti Suzuki Swift Dzire program. In 2004-05, Lumax Automotive Systems received an order from Honda Motorcycle & Scooters India for supply of entire air-filter units with volumes of nearly 30,000 units per month. Lumax supplies mirrors for the Mahindra & Mahindra Bolero. The company also supplies mirrors for the tractors produced by the company. The company supplies side view mirrors for the Tata Indica program. Lumax also supplies filter systems for all passenger car. LCV and HCV models in the Tata stable. Lumax is the sole supplier of filter systems to the Maruti 800 program;. Also in 2004-05, the company received an order from Hero Honda for paper element of air filters with volumes of 80,000 units a month. The company supplies plastic moulded parts to GM India. Certification Lumax Automotive Systems has been accredited with ISO/ TS 16949, QS: 9000 and ISO: 9000.
Financial Overview During the financial year ended 31 March 2008, Lumax
Automotive Systems generated sales worth INR1000.94m (15.8m, 31 March 2008) compared to sales worth INR970.08m (16.75m, 31 March 2007) in 2007, a growth of 3.12%. Profit Before Tax decreased by 11.85% to reach a figure of INR37.47m (0.59m, 31 March 2008). Net Profit for the fiscal 2008 was at INR21.73m (0.34, 31 March 2008). Year 2008 2007 2006 2005 Year 2008 2007 2006 2005 Net sales, INR m 1000.4 970.08 910.19 815.93 Net sales, m 15.81 16.75 16.95 14.44 Operating Profit, INR m 113.28 108.87 97.74 83.08 Operating Profit, m 1.79 1.88 1.82 1.47 Profit Before Tax, INR m 37.47 42.51 40.84 28.73 Profit Before Tax, m 0.59 0.73 0.76 0.51 Net Profit, INR m 21.73 25.31 29.74 27.85 Net Profit, m 0.34 0.44 0.55 0.49
Outlook Lumax Automotive Systems strategy of tapping international alliances

has helped the company in making a headstart, however growth has been slower than expected largely due to weakened two wheeler demand in 2007.
211
Machino Plastics
Bumpers and dashboards
Address
Machino Plastics Limited, 3, Maruti JV Complex, Delhi - Gurgaon Road, Haryana - 122015, India
Machino Plastics is the largest supplier of bumper and dashboards to Maruti Udyog. 96% of Machino Plastics revenues are derived from its automotive business. The company is partly owned by Maruti.
Setup in 1987, by MD Jindal and Maruti Udyog to cater to plastics requirements of Maruti Udyog, Machino Plastics can rightly be called as an associate vendor to Maruti Udyog. The companys sole manufacturing facility is situated in the Maruti Joint Venture Complex in Gurgaon. The Jindal family and associates hold 44.09% stake in Machino while Maruti Udyog and Suzuki Motor Corporation hold 15.35% each in Machino Plastics. Machino also has interests in other businesses such as car dealerships through associate companies. Machino Plastics automotive business comes solely from Maruti Udyog, which accounts for 95% of its revenues. The company also sees some work coming from Eicher Motors, though relatively small in value. Machino Plastics also supplies injection-moulded plastics to some other Maruti suppliers like Sanden Vikas.
Tel: +91 124 234 1218, 234 0806, 234 6

094, 234 7601 Fax: +91 124 234 0692 Internet: http://www.machino.com
Senior Officers
Sanjiv Jindal, Managing Director MD Jindal, Chairman Rajiv Batra, Business development N Bala Subramanium, Operations & marketing SK Aggarwal, Finance
Products
Automotive: Bumpers, fenders, radiator grills, instrument panels and console assemblies
Recent Developments
Corporate strategy The commissioning of Marutis Manesar facility has improved Machinos prospects of business with the OEM. While, Machino Plastics has been manufacturing plastics for the white goods sector, the companys core business still revolves around Maruti. Investments In 2001, Machino Plastics invested in a new moulding machine of 3150 tons for commencing supplies to the Maruti Swift at a capital expenditure of INR70m. Joint-ventures In 1995, Machino Polymers was setup by the Machino group. Later an alliance was formed with Hinmot, Italy. The company was later known as Machino Montell and was then renamed Machino Basell. Machino Basell is a joint venture polypropylene granule supplier. The company is held equally by the Machino and Basell. Contracts The company supplies plastic bumpers for all Maruti models. In case of the Maruti 800 model, another vendor meets 50% of the bumper requirements. Machino Plastics also supplies instrument panels for all Maruti models. The company is a supplier to air conditioning systems manufacturer Sanden Vikas. In the commercial vehicle market, Machino supplies plastic components to Eicher Motors for their HCV and high-end trucks. The company has also done some amount of work for Coca-Cola India. Some of Machino's own products include storage pallets and boxes for industrial applications.
Plants
Gurgaon (1)
Sales
INR 878.01m(13.87m, 31 March 2008) (Year to 31.03.08)
Employees
c. 80 (2008)
Financial Overview Machino Plastics posted net sales for the year ended 31
March 2008 at INR878.01m(13.87m, 31 March 2008) a growth of 6.02% compared to previous years figures of INR828.08m (14.30m, 31 March 2007). Profit before tax for the fiscal 2008 stood at INR48.52m (0.77m, 31 March 2008) down 35.73% from previous years figure of INR75.49m(1.30m, 31 March 2007). Net profit declined 42.9% from INR55.01m (0.95m, 31 March 2007) in 2007 to INR31.36m (0.5m, 31 March 2008) in 2008.
212
Year
Net sales, INR m 878.01 828.08 718.34 686.50 632.30 Net sales, EUR m 13.87 14.30 13.38 12.15 11.81
Operating profit, INR m 167.95 187.01 155.84 140.88 153.33 Operating profit, EUR m 2.65 3.23 2.90 2.49 2.86
2008 2007 2006 2005 2004 Year
Profit before tax, INR m 48.52 75.49 30.3 45.92 55.27 Profit before tax, EUR m 0.77 1.30 0.56 0.81 1.03
Net Profit, INR m 31.36 55.01 20.35 29.12 33.40 Net Profit, EUR m 0.50 0.95 0.38 0.52 0.62
2008 2007 2006 2005 2004
Outlook The sole dependence of the company on Maruti trims its profit margins
and restricts the scope for. Some of the margin pressures are due to Machino's small scale and internal inefficiencies. 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 companys top-line growth.
213
Madras Engineering
Slack adjusters
Address
Madras Engineering Industries C-6, Industrial Estate Ambattur, Chennai 600 058 Tamil Nadu, India
Madras Engineering Industries is a leading supplier of automatic and manual slack adjusters. In India Madras Engineering has a 70% market share for slack adjusters.
Madras Engineering was established in 1966 as automotive ancillary. Following a specific demand by its customer,Sundaram Clayton, the company started machining operations for slack adjusters and later commissioned full scale production operations. Madras Engineering operates three manufacturing facilities located in the Chennai auto cluster. The company runs a export oriented unit in the Mahindra World City Special Economic Zone. While domestic marketing is done by itself, overseas marketing and sale is handled by John Bruce, UK which is also an equity partner in the company. The company is a privately held concern with major equity participation by the Parthasarthy family along with ICICI, Sundaram Fasteners and John Bruce, UK. The company manufactures 90,000 slack adjusters a month for the domestic market. MEI has an installed capacity of 160,000 slack adjusters a month dedicated exclusively for domestic supplies and 90,000 slack adjusters for exports. Madras Engineering supplies slack adjusters to Ashok Leyland, Asian Motors, Swaraj Mazda and Tata Motors on a JIT basis. Madras Engineering exports slack adjusters to ArvinMeritor and Scania.
Tel: + 91 44 2625 8433 Fax: + 91 44 2625 0178 Internet:

http://www.madrasengineering.com
Senior Officers
EK Parthasarthy, Chairman & Managing Director Radha Parthasarthy, Director Sriram Sivaram, President K Sundararajan, General Manager, Marketing Nilanjan Chakraborty, Dy General Manager, Marketing
Products
Automatic slack adjusters, manual slack adjusters, self setting automatic slack adjuster, 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, multi-axle vehicles in India. In October 2006, the use of automatic slack adjusters was made mandatory on all commercial vehicles. The company has since witnessed an increase in product demand in the domestic market. Madras Engineering is exploring option of supplying associated braking system components as a part of its growth strategy. The company generated revenues of INR 2.3bn (36.34m, 31 March 2008) and expects to scale up the revenues to INR 5bn (79.9m, 31 March 2008) over the next 4 years. It hopes to establish a strong export business for automatic slack adjusters. 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 120,000 units a month. Investments In October 2006, Madras Engineering Industries commissioned operations at a dedicated Export Oriented Unit for slack adjusters at Chennai at a capital cost of INR 120m (2.10m, 31 October 2007). In 2006, Madras Engineering Industries invested INR 400m (7.0m, 31 March 2007) for expansion of production facilities for automatic slack adjusters. Contracts MEI is the sole supplier of slack adjusters to Ashok Leyland. MEI supplies 75% of slack adjuster requirement of Tata Motors. MEI supplies slack adjusters to ArvinMeritor UK through John Bruce.
Plants
Chennai (3)
Sales
INR 2.3m (36.34m, 31 March 2008)
Employees
c. 420 (2008)
214
MEI is the sole supplier of slack adjusters to Swaraj Mazda. MEI is the sole supplier of slack adjusters to Asian Motors.
Certification Madras Engineering has been accredited with ISO 9000-2000 for its Maraimalainagar unit and QS 9000 for its Ambattur unit.

Madras Engineering holds 3 patents for self setting auto slack adjusters.
Financial Overview In the financial year 2008, Madras Engineering generated

sales worth INR 2.3bn (36.34m, 31 March 2008) growing 130% year on year compared to previous years sales of INR 1bn (20.0m, 31 March 2007). It generated 72% of its revenues from exports during the financial year 2008. Improvement in revenue was attributed to increase in sales from a greenfield manufacturing unit near Chennai. Madras Engineering is a privately owned and does not publish financial statements.
Outlook Madras Engineering has emerged as a strong supplier of slack adjusters

through its robust supply network in India and marketing agreements in Europe. The company is poised to benefit from the government mandated use of automatic slack adjusters in commercial vehicles in India.
215
Mahindra Composites
Composites
Address
Mahindra Composites Limited 145, Nehru Nagar Road, Pimpri, Pune- 411018 Maharashtra, India
Mahindra Composites is a part of the Systech Group, Mahindras component division. With two plants in the western automotive cluster, 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.
Mahindra Composites was promoted as, 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. The company drew technical expertise from Menzolit GmbH, Germany. Subsequently SICOM offloaded its interest in the company with Mahindra as the sole promoter of the company. With the inception of Systech as an independent division at Mahindra, Siroplast was renamed as Mahindra Composites and brought under the Systech administration. At present the company derives 80% of its sales from nonautomotive businesses. Mahindra Composites has two manufacturing facilities, one each at Pune and Raigad (Maharashtra). Mahindra Composites divides its businesses into electrical and automotive segments. It also caters to medical, defence and construction industries. The company is also preparing to enter a third segment to capitalise on the increasing use of composites in the sub-continent. The company specializes in production of sheet moulding with a capacity of 10,000 tonnes per annum and dough moulding compounds with a capacity of 4,000 tonnes per annum. The company has developed expertise in handling resin transfer moulding and hand lay-up reinforced plastics. Mahindra Composites automotive clientele includes; Ashok Leyland, Avia, Bajaj Auto, Mahindra & Mahindra Automobile Division, Mahindra & Mahindra Farm Division, Sonalika, Swaraj Mazda and Tata Motors.
Tel: + 91 20 2742 5265 / 6 Fax: + 91 20 2742 5272 Internet: http://www.siroplast.com Senior Officers
Ajit Lele, CEO Dr M K D Choudhury, Technical advisor Nandkishore D Agwan, Sr GM - Works Ravi L Panke, GM, Marketing Neeta A Bannur, DGM Finance Nachiket Thakur, DGM Product Design & Development
Products
Dough moulding compound, NVH covers with in situ foam moulding, radiator grill, sheet moulding compound
Plants
Pune (1), Raigad (1)
Sales
INR324.17m (5.15m, 31 March 2008)
Recent Developments
Corporate strategy Unlike Europe where composites form a substantial part of a car body, the subcontinent continues to rely on sheet metal for automotive body parts. Mahindra Composites expects the use of composites in the Indian automotive industry to increase rapidly. Increase in steel prices has led to an increased interest in composites which were earlier considered expensive, despite their overall lower life cycle costs. 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. 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. The company is eyeing targets for inorganic growth to promptly add capacity and gain client base. 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. The company is also keen on the commercial vehicle segment which has an inherent requirement of composites in NVH applications. Electric vehicles which have been gaining ground in the Indian markets are also a prime target for composites, since weight reduction is an
Employees
c. 130 (31 March 2008)
216
essential metric. Contracts Mahindra Composites supplies side fenders for the Mahindra Arjun tractor. The company also supplies radiator grill for the Mahindra Bolero. Infrastructure Hydraulic hot compression moulding presses (100 to 500 tonnes) 10 nos.
New Product Developments Mahindra Composites has developed in-house competence for developing materials, tools and designs. In 2007, Mahindra Composites developed a front wheel cover for a three wheeler with class A type surface finish in a 2 month period. In the same year, Mahindra Compsites developed tooling and components for Avia, Austria. In the same year, Mahindra Composites developed products for ITEC, USA. In 2006, Mahindra Composites developed engine hood for Ashok Leyland. In 2002, Mahindra Composites had developed NVH cover with in situ foam moulding for the Mahindra Scorpio program. Financial Overview Mahindra Composites 2008 sales amounted to INR324.17m (5.15m, 31 March 2008), up 23.9% compared to INR261.62m (4.52m, 31 March 2007) in 2007. Operating profit for the 2008 financial year came in at INR29.42m (0.47m, 31 March 2008) representing a 97.71% increase in gross earnings. Net Profit came to INR11.19m (0.18m, 31 March 2008), an increase of 413.3% compared to INR2.18m (0.04m, 31 March 2007) posted in 2007. These improvements were attributed to increase in automotive and non-automotive sales and higher value added sales. Year Net sales, INR m
324.17 261.62 204.38 198.68 169.41

29.42 14.88 21.93 28.44 30.6

15.68 3.84 14.14 23.44 27.04
Net Profit, INR m

11.19 2.18 8.78 15.07 18.01
2008 2007 2006 2005 2004
Year
Net sales, m
5.15 4.52 3.81 3.52 3.16
Operating profit, m
0.47 0.26 0.41 0.50 0.57

0.25 0.07 0.26 0.41 0.51
Net Profit, m
0.18 0.04 0.16 0.27 0.34
2008 2007 2006 2005 2004
Outlook Mahindra Composites automotive growth strategy is beginning to take

shape with increased acceptability of composite materials in the Indian automotive industry. 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. This is expected to happen along with a double digit growth in the nonautomotive business. The company has already been able to enter key projects at design stage for aesthetic body panels which offer immense growth opportunity. At the same time, increased focus on NVH by OEMs in India will help the company grow rapidly. To this end, Mahindra Composites has already won the mandate of some commercial vehicle manufacturers.
217
Mahindra Hinoday
Automotive castings, ceramic magnets and ferrite cores
Address
Mahindra Hinoday Industries Ltd, Bhosari Industrial Area, Pune 411 026 Maharashtra India
Mahindra Hinoday is a joint-venture between Mahindra and Hitachi Metals, Japan. Mahindra Hinoday is a leading manufacturer of automotive castings, ceramic magnets and ferrite cores that are used in automobiles and consumer electronic industries. The company generates 80% of total sales from the automotive industry.
The company was established as in 1963 as Morris Electronics Ltd. In 1980, DGP Industries acquired the company and in 1985 formed a joint-venture with Japan based Hitachi Metals. In 1996, the company was renamed to DGP Hinoday and finally to Mahindra Hinoday after the promoter group sold their holdings to Mahindra in November 2006. DGP Hinoday has three business divisions: Ceramic Magnet division: manufactures ceramic magnets for the automotive and electronic industries. This division generated approximately 19% of the total sales in the financial year 2007-08. Automotive Castings division: manufactures SG Iron castings for the automotive and supplier industry. Castings division generated about 60% of the company's total sales. Ferrite Core division: manufactures ferrites for automotive and electronics industry applications. It generated around 22% of the company's sales. In the financial year 2007-08, the company achieved 27% of its total sales from exports. DGP Hinoday exports its products to Australia, Brazil, France, Germany, Indonesia, Italy, Singapore, South-East Asia, Spain, Thailand and USA. The company's customers include Automotive Axles, Bosch chassis Systems India, Dana, Denso India, Hyundai Motors India, India Nippon Electrical, Jaya Hind Industries, Lucas TVS, LML, Mahindra & Mahindra, Matsushita, Meritor, Rane Group, TAFE, Varroc Engineering, Visteon India and ZF Steering Gears.
Tel: + 91 20 2712 0811 Fax: + 91 20 2712 0389 Internet: http://www.hinoday.com Senior Officers
Sudheer Tiloo, President & Managing Director
Products
Cold precision forgings, gears, sheet metal components, spline shaft, warm precision forgings
Plants
Maharashtra (2)
Sales
Employees Recent Developments

c. 800 (31 March 2008) Corporate strategy After the acquisition of a majority stake by Mahindra, the company is now a part of a much larger supplier group. Mahindra Hinoday is aggressively increasing its exports to bring it in line with Mahindra Systechs plan of ensuring that every group company derives 40% of its sales from exports. The company began with import substitution of ferrites in early nineties and diversified its business into automotive castings by 2000. Currently, the company is focussing on the commercial vehicle segment to extend its casting business. Contracts In June 2005, 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 supplies 100,000 magnets monthly to Visteon's export-oriented unit in Chennai (Tamil Nadu) for use in starter motors for passenger cars. Mahindra Hinoday supplies castings to Mahindra & Mahindra. In 2002, company began exports of automotive casting to UK and USA. Certifications In 2004, Mahindra Hinoday was certified with TS certifications for its casting
218
division. In 2001, 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, Mahindra Hinoday generated sales of INR2.5bn (39.50m, 31 March 2008).
Outlook
Mahindra Hinoday is exploring several export opportunities to bring its export targets in line with that of Mahindra Systech. The company plans to offer its low cost manufacturing capacity for supplying castings in international markets. With Mahindra groups financial as well as marketing support, the company is likely to get a major boost in sales going ahead.
219
Mahle Migma
Camshafts & valve tappets
Address
Mahle Migma Ltd Plot No. 112, Sector-1, Ind. Area Pithampur-454 775 Madhya Pradesh India
Mahle Migma is a leading supplier of camshafts and valve tappets in India. The company is a fully-owned subsidiary of Mahle and exports 55% of its production to European and South East Asian markets.
The company started as Migma with the production of components and valve train systems in 1986 at Pithampur (Madhya Pradesh, India). The company was later converted into a 50:50 joint-venture with Mahle. In 2000, the company was completely taken over by Mahle. Mahle Migma makes two million chilled cast camshafts and 15 million tappets per annum. About 55% of the total production is exported to Germany, Italy and Malaysia. The company has a 50% market share in the camshaft market in India. It supplies partly-machined camshafts. Mahle Migma supplies to Eicher, Escorts, Force Motors, GM, Hindustan Motors, HM-Mitsubishi, Mahindra & Mahindra, Maruti Udyog, Swaraj Mazda, TataCummins, Tata Motors, TVS and Yamaha. Additionally the company exports to Chery, Cummins, John Deere, Lombardini, Mahle, New Holland and Proton. Mahle Migma has a 50% share in Maruti's business.
Tel: + 91 7292 507 738/ 253 504/ 253

523/ 253 815 Fax: + 91 7292 253 397
Internet:
http://www.mahlevalvetrain.com
Senior Officers
Pradeep Batra, Managing Director Hemant Chhabria, Vice PresidentMarketing Pradeep Bhatia, Senior Vice President Operations
Products
Fully machined chilled cast camshafts, fully machined chilled cast engine valve tappets, fully machined valve guides, raw chilled cast camshafts, raw chilled cast engine valve tappets, raw valve guides, semi-machined chilled cast camshafts, semi-machined chilled cast engine valve tappets, semi-machined valve guides
Recent Developments
Corporate strategy In recent years, Mahle Migma has received significant business from Maruti Suzuki which itself has done fairly well. The OE has made significant investments in increasing capacity in India for creating a global small car hub. Mahle Migma has been exploring supply opportunities for fully finished tappets along with exports of various power train components. 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. Contracts Mahle Migma supplies one million raw tappets per month to Mahle, Germany. Mahle Migma has been selected to supply fully finished tappets to Mahle, Brazil. The company supplies fully finished cams to the GM Tavera, HM, Swaraj Mazda, John Deere, Cummins India. The company supplies to the HM Mitshubishi Lancer program. The company supplies over 100,000 cams for two wheelers per month. 90% exports made by the company to Germany are meant for Volvo and Deutz. Certifications Mahle Migma has been accredited with TS 16949 status.
Plants
India: Pithampur (Madhya Pradesh) (1)
Sales
INR 850m (13.43m, 31 March 2008) (Year to 31.03.08)
Employees
c. 580 (2008)
Financial Overview
In the financial year ending 31 March 2008, Mahle Migma recorded estimated sales of INR850m (13.43m, 31 March 2008).
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. Mahle Migma also stands to benefit from India's growing vehicle volumes and those of Maruti where it has a big percentage of business. 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.
220
Mark Exhaust Systems

Exhaust systems
Address
Mark Exhaust Systems Limited S-430, Greater Kailash-II New Delhi- 110 048
Exhaust systems is the core product of Mark Exhaust. Nearly 70% of the companys sales come from Maruti, which is also an equity stakeholder in Mark Exhaust.
Mark Exhaust is a member of Maruti traditional supplier base. It was formed in 1996, jointly by Rattan Kapur and Associates (45.63%), Maruti (44.37%) and the remaining 10% equity is jointly-held by technical partner Sankei Giken and Japanese logistics specialist Nissho Iwai. Mark Exhaust's client list consists of Maruti (70%), Honda-Siel (15%), Honda Motorcycles & Scooters India (10%) and Hindustan Motors (3%). Besides, Mark Exhaust also exports some of its products to the European aftermarket.
Rattan Kapur, Managing Director Brij Malhotra, Vice President R. K. Arora. Dy GM (Operations) Sanjay Gupta, Div Manager-Commercial Rajesh Khanna, Manager Exports and Customer relations
Recent Developments
Corporate strategy Mark Exhaust is poised to witness a drop in its share of Marutis business with the entrant of a new joint-venture between Maruti and Magnetti Marelli as its partner. Many new engine programs for Maruti may have the exhaust systems coming from the new venture. Mark Exhaust in turn is working to expand its customer base and product offerings. It is planning to enter into production of metallic frills and side impact beams. Joint-ventures Mark Exhaust shares a technical joint-venture with Dong Won, a Korean supplier for manufacturing door sashes. Mark Exhaust has a technical and financial tie-up with Sankei Giken, Japan, for exhaust systems. Sankei Giken holds 7.5% equity in the company. Mark Exhaust Systems also has a technical alliance with Futaba Industrial Co., Japan, for exhaust systems. This joint-venture was arranged for the Maruti Swift model. Contracts The company has been supplying door sashes for the Maruti Alto. Mark Exhaust supplies exhaust systems for the Swift. Mark Exhaust system is the sole supplier of exhaust systems for the Maruti Zen Estilo and Versa. Mark Exhaust also supplies the canning for the catalytic converters for the Maruti Alto. The company is also the sole supplier to the Honda Civic. The company is also the sole supplier to the Honda City.
Products
Catalytic convertors, door sashes, exhaust gas re-circulation, exhaust systems, mufflers
Plants
Haryana (2)
Sales
INR1.5bn (23.7m, 31 March 2008)
Employees
c. 320 (2008)
Financial Overview
In the financial year ending 31 March 2008, Mark Exhaust Systems' estimated sales figure was INR1.5bn (23.7m, 31 March 2008). Being a privately-held company, Mark Exhaust Systems does not publish detailed financials.
Outlook Mark Exhausts limited success to develop relationships with other OEMs
has restricted its business potential, tying it to Marutis fortune. The entry of a second vendor for exhaust systems will now lead to much stricter competition. Meanwhile Mark Exhausts strategy of moving into non-exhaust systems products has failed to add significant revenues or clients for the company.
221
Metro Tyres
Tyres, tubes
Address
Metro Tyres Limited, Metro House, 134/4, 135/5 Zamrudpur Kailash Colony New Delhi- 110 048
Metro Tyres Limited (MTL) is a leading supplier of tyres and tubes to the two-wheeler and farm segment. The company is also active in the consumer durable space with products like electric fans, electric irons, sewing machines under the name ORTEM. Besides MTL also continues to manufacture and market bicycle parts.
Founded in 1968 as a bi-cycle tyre and tube manufacturer, Metro Tyres has made significant in-roads into the automotive tyre market by forging a strong relationship with Continental AG.
Tel: + 91 11 26219097 Fax: + 91 44 26215113 Internet: http://www.metrotyres.com Senior Officers

Rummy Chhabra, Managing Director
Recent Developments
Corporate strategy Metro Tyres is positioning itself as a global outsourcing hub for tyres and tubes. The company has already managed to secure a long term contract with Continental for catering to its non-automotive tyre and tube requirements. Metro on its part has invested INR1bn (18.02m, 31 June 2004) to meet the requirements of Continental. The relationship with Continental AG now extends to a technical and equity collaboration. Earlier in 2004, Continental had initiated an exercise for buying a minority equity stake in Metro Tyres. Metro has started shipping supplies of two-wheeler tyres and tubes and commercial vehicle tubes. The company has also introduced the Metro-Continental branded tyres in the Indian market. Joint-ventures In October 2002, Continental AG inked an agreement with Metro Tyres Ltd for the production and marketing of motorcycle and scooter tyres in India. Continental agreed to supply technical assistance for the production of tyres for motorized two-wheelers which shall be branded as Continental tyres. Under the terms of the license the production commenced with an initial volume of 300,000 units in 2003 which shall be hiked to 1.5m units by 2007. Investments In June 2004, Metro Tyres set up an INR 300m ( 5.41m, 30 June 2004) manufacturing facility in Gurgaon (Haryana) to manufacture all types of automobile tubes. The plant would start its production in the end of 2004 and would have an installed capacity of 3,000 tons per annum. The company would export 80% of the production to Continental AG and rest 20% would be sold in India under the joint brand-name. Metro Tyres started constructing an INR 400m ( 7.47m 31 March 2004) manufacturing facility in Ludhiana, Punjab (India) unit to manufacture fourwheeler tyre tubes. The plant would have a capacity to manufacture 100,000 tyre and tube sets per month. 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. Contracts In October 2002, Metro Tyres supplied the entire requirement of four-wheeler tubes of Continental AG.
Products
Tyres for two wheelers and farm equipment
Plants
Punjab (1), Gurgaon (1)
Sales
INR 5bn ( 79.0m 31 March 2008)
Employees
c. 1,500 (2008)
Financial Overview In the financial year ended 30 June 2008, Metro Group recorded sales worth INR 5bn ( 79.0m 31 March 2008). Metro Tyres is privately held and does not publish financial statements. 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
222
supplies. Despite its strong emergence in the last five years, 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.
223
MRF
Tyres
Address
MRF Limited 124, Greams Road Chennai- 600 006 India
MRF is Indias second largest manufacturer of tyres. On a global scale it ranks fifteenth. The company also has interests in conveyor belt production and specialty coatings.
MRF was established in 1946 as Madras Rubber Factory. The company entered the tyre market in 1963 in collaboration with Mansfield Tire & Rubber Factory. The latter subscribed to 25% equity in the company in exchange for technical assistance. In 1986, MRF commenced operations of conveyor belt assembly in collaboration with Pirelli. In 1989, MRF set up a tread rubber factory in Goa (India) and diversified into automotive paints. Commercial vehicle tyre sales form a major chunk of MRFs sales figures. MRF is also strong in the passenger car radial segment. The company has a strong presence in Southern India. MRF has a strong distribution network with established brands like ZVTS, Supermillaer for trucks and Shakti plus for tractors. Unlike some other players, MRF doesnt outsource production to smaller players. MRFs production mix comprises of commercial vehicles (20%), passenger cars (17%), scooters (45%) and others (18%).
Tel: + 91 44 2852 2745 Fax: + 91 44 2625 7121 Internet: http://www.mrftyres.com Senior Officers
KM Mammen, Chairman & Managing Director Arun Mammen, Managing Director
Products
Tyres
Recent Developments
Corporate strategy MRF has been aggressive on exports adding new companies to its exports list. In countries where it is already present it is adding new distributors. 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. The company is also increasing its product line in the non-tyre range. Investments MRF set up a Greenfield tyre making facility in Colombo (Sri Lanka). The facility became functional in June 2006. This facility is used as an export hub to ship tyres to Pakistan and other countries which have trade agreements with Sri Lanka. Contracts In 2003-04, MRF commenced supplies of tyres to the Ford Endeavour program. In November 2005, MRF became the original equipment manufacturer for Hyundai Motor India (HMI) and will be supplying tyres for Hyundais Santro and Elantra models.
Plants
Andhra Pradesh, Goa, Kerela, Pondicherry, Tamil Nadu (3)
Sales INR34.27bn (648.26m, 30 September

2005) (Year to 31.03.05)
Employees
c 9000 (2004)
Peer Group Apollo Tyres, Birla Tyres, Bridgestone, Ceat, Goodyear, JK Industries

In 2003-04, MRF developed the broadest radial tyres (256 mm in width) to go as OE fitment on any car in India, named MRF ZVRL is fitted to the Ford Endeavour. Also in 2003-04, MRF developed a new speciality coating called MRF Durothane. Durothane is 100% polyurethane for metal, wood and plastic surfaces. The range was launched in 20 shades and 3 finishes. Also in 2003-04, MRF Speciality coatings launched MRF Centro, a 100% polyurethane finish for wood surfaces, exterior and interior. In 2002, MRF developed a new tube steel-belted radial tyre for the Toyota Qualis.
Certifications MRFs Pondicherry plant and corporate functions have been accredited with ISO/ TS 16949:2002 status.
224
Financial Overview In the financial year ending 30 September 2005, MRF recorded sales worth INR34.27m (648.26m, 30 September 2005) compared to
sales worth INR30.34m (536.57m, 30 September 2004) in 2004, an increase of 12.95%. Operating profit declined by 2.4% with the final figure for 2005 at INR2.03bn (38.30m, 30 September 2005). Profit before tax declined by 29.33%, coming down from INR842.3m (14.90m, 30 September 2004) in 2004 to INR595.5m (11.26m, 30 September 2005) in 2005. Net profit rose 39.96% to INR403.1m (7.62m, 30 September 2005) in 2005 from previous years figure of INR288.00m (.03m, 30 September 2004). For the six-month period ended 31 March 2006, MRF recorded sales worth INR16.97bn (316.05m, 31 March 2006), an increase of 22% compared to previous years figure of INR13.90bn (246.10m, 31 March 2005). Profit before tax for the six-month period was at INR312.2m (5.81m, 31 March 2006) in 2005, compared to previous years figure of INR189.6m (3.36m, 31 March 2005), an increase of 65%. Net profit improved by 63.5% at INR197.6m (3.68m, 31 March 2006) in 2005 compared to a net profit of INR120.8m (2.13m, 31 March 2005) in 2004. Year* 2005 2004 2003 2002 2001 Gross sales, INR bn 34.27 30.34 26.00 22.33 21.20 Profit Before Tax, INR m 595.2 842.30 940.10 1,125.00 487.40 Net Profit, INR m 403.1 288.00 1,173.80 784.60 317.40
*Year ended 30th September Year* 2005 2004 2003 2002 2001 Gross sales, m 648.26 536.57 490.52 471.03 487.89 Profit Before Tax, m 11.26 14.90 17.73 23.73 11.21 Net Profit, m 7.62 5.03 22.14 16.55 7.30
*Year ended 30th September
Outlook The truck tyre forms the dominant product group of the company. This industry was going through a recession in the past few years, but now the situation has suddenly turned around. 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. 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. The company will be focusing on exports to lift up its profits.
225
Munjal Auto
Sheet metal components, forged gear blanks
Address
Munjal Auto Industries Ltd, 187, GIDC Estate, Waghodia 391760, Vadodara, Gujrat, India
Munjal Auto is a Hero Group company manufacturing forgings such as gears and shafts. The company also supplies small stampings but mostly for two-wheeler sector. A large percentage of Munjal Auto's sales come from group company Hero Honda.
Established initially as Gujarat Cycles Limited in 1988, 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. In the 1990s Hero Group purchased Gujarat Industrial Investment Corporation's stake and shifted its focus to automotive components. The company was renamed Munjal Auto Industries and its bicycle business was hived off in 2001 to make it purely an automotive supplier. Hero Honda is the principle customer of Munjal Auto Industries accounting for 98% of the company's sales.
Tel: +91 2668 262421-26 Fax: +91 2668 262427 Internet: http://www.munjalauto.com Senior Officers
Satyanand Munjal, Chairman Sudhir Munjal, Managing Director Ravi Sharma, General Manager- Finance
Products
Cold precision forgings, gears, sheet metal components, spline shaft, warm precision forgings
Recent Developments
Corporate strategy Munjal Autos dependence on Hero Honda helped the company grow in critical mass. Currently, the two-wheeler market has matured leading to flat sales growth. This has led to stagnant volumes for most suppliers to the two wheeler sector. To counter input cost pressures, Hero Honda relocated half of its production to a new facility at Haridwar which enjoys tax breaks. Significantly, most critical suppliers followed Hero Honda to the new location. Munjal Auto however continues to operate from a relatively higher cost base. Divestments In March 2006, Munjal Auto Industries de-merged its Binola- based (Haryana, India) facility into a separate company Shivam Autotech. Investments In 2005, Munjal Auto Components invested INR270m (4.78m, 31 March 2005) in its Waghodia (Gujarat, India) based sheet metal unit for expansion of its existing capacity of rim and muffler manufacturing and to meet increased demands from Hero Honda. In 2005, the company invested INR220m (3.90m, 31 March 2005) in its Binola (Haryana, India) based plant. Due to the investment, the company expanded gear blank machining capacity from 9.6 million units to 12 million units and gear finishing capacity from 3.6 million units to 7.2 million units. Warm and cold forged component capacity was also increased from 6.6 million units to eight million units. In 2005, Munjal Auto Components announced investment of INR235m (4.16m, 31 March 2005) to add higher capacity presses and machining equipment for the production of a new component for Hero Honda Motors. Contracts Munjal Auto Industries supplies side step assembly for the Chevrolet Tavera. The company supplies nearly 75-80% of Hero Honda's requirements in all high-end motorcycles for the range of components its produces. Munjal Auto is also a supplier to Honda Motorcycles and Scooters India.
Plants
Vadodara (Gujarat)
Sales
Employees
c. 500 (31 March 2008)
Financial Overview
In the financial year ended 31 March, 2008, Munjal Auto reported sales of
226
INR2.17bn (34.3m, 31 March 2008) decreasing by 11.15% compared to previous year's sales of INR2.44bn (42.2m, 31 March 2007). Profit before Tax (PBT) decreased by 43.74% to INR153.55m (2.43m, 31 March 2008) from INR272.92m (4.71m, 31 March 2007) in 2007. Net profit of the company in financial year 2008 was INR101.56m (1.60m, 31 March 2008), decreasing by 45.94% compared to previous year's INR187.85m (3.24m, 31 March 2007).
Year
2008 2007 2006 2005 2004 Year
Gross sales, INR bn 2,171.27 2,443.74 2,341.24 2,461.00 1,840.00 Gross sales, m 34.31 42.20 43.59 43.56 34.37
Operating profit, INR m 210.36 325.32 416.04 505.34 391.51 Operating profit, m 3.32 5.62 7.75 8.94 7.31
Profit before tax, INR m 153.55 272.92 344.03 402.05 305.41 Profit before tax, m 2.43 4.71 6.41 7.12 5.71
2008 2007 2006 2005 2004
Outlook
Munjal Autos sales to two wheeler programs have stagnated on the shift of its main customers manufacturing base and the preference being given to lower cost producers operating at locations enjoying a tax-holiday. Tatas plans to relocate the Nano to Gujarat significantly increases Munjal Autos prospects to supply to the higher-end variants being developed by Tata. Presently the company does not have any supply contracts for the Nano.
227
Munjal Showa
Shock absorbers and suspension systems
Address
Munjal Showa Limited 9-11 Maruti Industrial Area Gurgaon - 122 015 Haryana India
Tel: +91 124 2340427-29 Fax: +91 124 2341346 Internet: http://www.munjalshowa.com Senior Officers
Brijmohan Lall Munjal, Chairman Yogesh Munjal, Managing Director Seiji Konoue, Joint Managing Director CM Midha, DGM- Marketing
Hero Group owned, Munjal Showa Limited (MSL) is the second largest suppliers of shock absorbers and related ancillaries to the two wheeler and four wheeler industry. Nearly 88% of Munjal Showas revenues come from the twowheeler industry, 85% of which is claimed solely by Hero Honda. Munjal Showa accounts for 29% market share in the two-wheeler segment and around 12% in the four-wheeler segment.
Munjal Showa Limited (MSL) was established in 1987, as a joint-venture between the Hero Group (39%) and Showa Corporation, Japan (26%). The company designs and manufactures shock absorbers and struts for various two-wheeler and fourwheeler manufacturers. MSL started commercial production with an initial capacity of 980,000 shock absorbers and 530,000 front forks per annum with plans to cater to the aftermarket, two-wheeler market, four-wheeler market and commercial vehicles. During the end 80s and early 90s MSL went on to add various products to its portfolio. A year after commencing operations in 1988, MSL undertook the machining of bottom case which plays a major role in a front fork. 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. MSL came under severe pricing pressure in the early 90s owing to the escalated costs in the local raw material market. MSL witnessed a robust growth through the 90s and continues to be a strong player owing to its strong relations with Hero Honda and Maruti. The company also developed shock absorbers for washing machines and photocopiers. The OEMs consume nearly 60% of the produce and the automotive aftermarket claims the rest. The company has two plants located in Gurgaon (Haryana, India). Hero Honda and Maruti Udyog together account for more than 90% of MSLs revenues. The company also counts Hero Motors, HMSI, Honda SIEL, Kinetic Motors and Majestic Auto as it clients. Other than domestic clients MSL ships supplies to Japan, Germany, UK and USA.
Products
Front forks, gas springs, shock absorbers, struts and window balancers.
Plants
Gurgaon (2)
Sales
Employees
c. 1,500 (31 March 2008)
Recent Developments
Corporate strategy In recent years, MSL has been a lead supplier to vehicle programs of Japanese origin, which has proved to be a fairly successful strategy as Japanese automakers account for a major share of sales n in India. However, this has restricted MSLs supply prospects with other OEMs. Moreover MSL continues to derive far greater revenues from supplying two wheelers as compared to four wheelers. The company further has a large dependence on Hero Honda. Showas global presence mitigates any possibility of MSLs overseas foray. However the company can be integrated into Showas global supply chain. Collaborations Munjal Showa Limited is a joint-venture between the Munjal Group and Showa Corporation of Japan. Investments In 2008, MSL announced the construction of a greenfield manufacturing facility at Haridwar (Uttaranchal, India) with a capital outlay of INR1bn
228
(15.08m, 31 March 2008). The plant is expected to commence production by December 2008. The plant will manufacture front and rear cushion, front fork and shock absorbers for 4,000 motorcycles per day, which will be ramped up to match the production of 6,000 motorcycles per day from 2010. In April 2006, MSL commissioned a new facility in Manesar, Haryana with a capital expenditure of INR360m (6.37m, 31 March 2005).
Contracts MSL has supply contract with Hero Honda (all models), Kinetic Motor (Scooters), Honda Motorcycles & Scooters India (Activa Scooter), Maruti Suzuki (Omni van) and Honda-SIEL (City, car) etc. The company has also added clients like Tata Motors (Indica). It is also developing struts for the new models of cars of Honda Siel and Maruti Udyog. MSL has been the sole vendor for the export requirement of Maruti Udyog Limited and Honda Motorcycles and Scooter India Private Limited.
New Product Developments All new product development is targeted at meeting new requirements from clients. Financial Overview
For the year ending March 2008, Munjal Showa's sales grew by 2.52%, touching INR7.09bn (112.08m, 31 March 2008), against INR6.92bn (119.49m, 31 March 2007) in 2007. Profit before tax declined 24.85% to INR297.85m (4.71m, 31 March 2008) as compared to INR396.35m (6.84m, 31 March 2007) in the previous year. Net profit for the company in 2008 slipped 25.65% to INR193.2m (3.05m, 31 March 2008) as against previous year's figures of INR259.87m (4.49m, 31 March 2007). Restriction of financers for credit advances following deliquesces lead to a drop in sales of motorcycles in fiscal 2007/08 lowering expected financial performance. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales, INR bn 7,093.79 6,919.00 5,966.24 5,214.42 4,042.77 Gross sales, m 112.08 119.49 111.09 92.30 75.52 Operating profit, INR m 474.19 533.17 420.72 310.34 401.94 Operating profit, m 7.49 9.21 7.83 5.49 7.51 Profit Before Tax, INR m 297.85 396.35 307.61 222.93 324.54 Profit before tax, m 4.71 6.84 5.73 3.95 6.06 Net Profit, INR m 193.19 259.87 202.31 78.3 211.68 Net Profit, m 3.05 4.49 3.77 1.39 3.95
Outlook Munjal Showa is assured of supply contracts to Hondas vehicle

programs and also bags brisk business from other Japanese OEMs including Maruti Suzuki. While demand for passenger cars is seen stagnating in the domestic market and is expected to revive only by the last quarter of 2009, Hero Honda has been witnessing a strong sales growth. This spurt in demand is being matched by MSL by investment in a new facility in close proximity of Hero Hondas Haridwar unit which enjoys tax breaks and other incentives.
229
Neolite ZKW Lightings

Lighting systems
Address
Neolite ZKW Lightings, B-24, Mayapuri Indl Area, Phase I, New Delhi - 110 064, India
Neolite ZKW is a major supplier of automotive lighting systems in India. The company has a strong export presence with 50% of production being shipped overseas. The company is more focused towards commercial vehicle lighting.
Neolite began operations five decades ago as an aftermarket supplier as the OE market was very small. The company has significantly expanded into the OE segment in the past two decades. The company exports half of its products (to 90 countries and claims to have a range of 1,500 different kinds of lighting products and 200 customers worldwide. Off late Neolites parent unit PPI has been producing plastic components while Neolite has been manufacturing plastic as well as sheet metal components. Globally, Neolite supplies to Piaggio- Italy, John Deere- Germany and Caterpillar. First tier players Hella and Federal Mogul also source their requirements from Neolite. The companys domestic client base consists of Eicher Motors, Tata Motors, Eicher Tractors, Mahindra & Mahindra (Auto & Tractor Division), Bajaj Tempo, TAFE , International Tractors, Bharat Earth Movers, Piaggio, Hindustan Motors, Royal Enfield Motors, Caterpillar India, L & T - John Deere, JCB.
Tel: +91 11 4563 6363 Fax: +91 11 2811 6025 Internet: http:// www.neoliteppi.com Senior Officers
Rajesh Jain, Managing Director TR Sharma, Senior Vice President- Sales & Marketing Anil Chaturvedi, Associate Vice President- International Marketing PK Jain, Senior Vice President
Products
Head lamps, tail lamps, corner lamps, side indicators, signal lamps, auxiliary lamps, beacons, front grills, plastic components, sheet metal components
Recent Developments
Corporate Strategy In recent years, 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 forged an equity alliance with ZKW Austria in 2008. 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. Moreover, Neolite ZKW would have additional supply opportunities made available through ZKWs Asian supply chain. The company also plans to leverage ZKWs technical know-how with LED, AFS, night vision and pedestrian protection technologies. In Europe, ZKW supplies to BMW, Daimler, Volvo, Audi, Porsche and GM. Neolite can benefit from ZKWs supply relationships and seek supply contracts by a follow through source model. Joint-ventures In April 2007, Neolite Industries entered a joint venture with ZKW-Zizala Lichtsysteme GmbH of Austria with a 74:26 equity split structure. The entire automotive business of Neolite was transferred to the joint entity, Neolite ZKW. Investments In January 2008, 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. The new plant is expected to commence production by 2009. Infrastructure Neolite has a total of five units located in and around Delhi. Of these two units are in Gurgaon (Haryana, India) and one is in Noida (Uttar Pradesh, India). One of the Gurgaon units is engaged in the production of sheet metal parts. The company has
Plants
Delhi (2), Gurgaon (2), Noida (1)
Sales
INR 700m (11.06m, 31 March 2008)
Employees
c. 300 (2008)
230
two more units in Delhi. The Noida facility is dedicated to exports. The company is equipped with CAD/CAM R&D, press shops, vacuum metalizing operations, semi automated processes, assembly lines, warehousing and computerized dispatch operations. Neolite has installed sheet metal presses, injection moulding machines, vacuum metalizing machines, CNC milling machines, automatic lacquer conveyors, CAD/ CAM system processes, ultrasonic welding machines, hotplate welding machines, painting equipment and conveyor, hard coating machines, EDM machines, semi conveyorised assembly lines, Unigraphics/ Catia for 3D modelling and CNC programming, light simulation software for generation of reports as per ECE and SAE guidelines, fully computerized goniometer, online photometric testing machines, TUV approved photometric labs and testing machines. Certification Neolites manufacturing units have been accredited ISO/ TS 16949 status. Testing & validation Neolites testing facilities are equipped with equipment essential for Ehomologation standards and SAE/ DOT requirements. Contracts Neolite supplies lighting systems to Volvo India for its range of buses. Neolite supplies lighting systems to Swaraj Mazda for its luxury buses. Neolite supplies lighting systems to MAN Force for its commercial vehicles. Neolite supplies lighting systems to Piaggio in India and Italy for its sub one tonne commercial vehicles. Neolite supplies lighting systems to AMW for its commercial vehicles. Neolite supplies lighting systems to ICML for its Rhino RX program.

Neolite has an in-house R&D team and incurs an expenditure of 5% of sales of product development.
Financial Overview In the financial year ending 31 March 2008, Neolite had estimated domestic sales of INR700m (11.06m, 31 March 2008) and exports sales of US$350m (5.53m, 31 March 2008). Being a privately held company, Neolite does not disclose complete financials. Outlook Neolites move to rope in a strong technology leader will help the company access the passenger car contracts in a more robust way. Until recently, Neolites supply capability was restricted in the passenger car space due to specific product development capabilities. Moreover, ZKWs strong European client base will offer a significant follow through source supply opportunity to the company in India.
231
NK Minda Group
Horns, switches, lighting, CNG/LPG kits
Address
Village- Nawada, Fatehpur P.O- Sikanderpur Badda IMT Manesar Distt Gurgaon Haryana- 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. The company has recently entered into other segments through jointventures.
The NK Minda group consists of the following companies: Minda Industries: The flagship company of the NK Minda group and Minda Industries designs, develops and produces two & three-wheeler and off- road vehicle switchgear. The company employees close to 1,200 people with facilities in Gurgaon (Haryana), Pune (Maharashtra), Delhi, Hosur (Tamil Nadu) and Aurangabad (Maharashtra). Minda Industries is the market leader in its segments with a 65% market share. Minda Industries generated sales worth INR 1.38bn ( 24.42m, 31 March 2005) in 2005. Mindarika: Is a leading four-wheeler switchgear manufacturer with revenues of INR 843.7m ( 14.93m, 31 March 2005) in 2005 with a market share of 42% in the segment. The company exported components worth INR38m (0.67m, 31 March 2005) in 2005. The company signed a technical assistance agreement with Tokai Rica in 1994 for the production of combined switches. The company commenced exports to Japan in 2002 and USA in 2004. Minda TYC Automotive: Is a leading supplier of lighting products for two and three wheelers, off-roaders and four-wheelers with sales of INR 343m ( 6.07m, 31 March 2005) in 2005. Minda FIAMM Acoustics: Is a supplier of two and three-wheeler horns with sales of INR251m (4.44m, 31 March 2005) in 2005. The company has a facility each in Gurgaon (Haryana) and Delhi with 250 employees. Fiamm Minda Automotive: It is a leading exporter of four-wheeler horns to European OEMs. The company exports nearly 97% of its production with estimated sales of INR500m (8.85m, 31 March 2005) in 2006. Fiamm Minda exports 20,000 horns per day to customers including Peugeot, Renault, Mazda and BMW. Minda Impco: Minda Impco generated sales worth INR130m (2.43m, 31 March 2005) in 2005 through its product range of CNG and LPG kits. The company has Maruti and Hyundai as customers for fitting CNG and LPG kits on their product range. Valeo Minda Electrical Systems manufactures starter motors and alternators. Minda Industries export customers consist of Robert Bosch GmbH (Germany); Piaggio (Italy) and PMTC (France). The company also supplies to global OEMs including Honda (Indonesia), Suzuki (Malaysia, Philippines and Thailand), Yamaha (Indonesia, Thailand and Malaysia), MBK (France), Piaggio (Italy), Peugeot (France), Aprilia (Italy) and Triumph (UK) in the two-wheeler segment. Other customers include Case New Holland, GM-DAT (Korea, Mexico), Ford (China), John Deere, Suzuki (Japan), Piaggio (Italy), Yanmar Agricultural Machinery (Japan), Surya Jaya (Indonesia), Mission Trading (USA), International Trust (USA), KAG Associates (Sri Lanka), Torica (Japan), Overseas Automotive (Sri Lanka) and Microcar (Sri Lanka). The company derives 90% of its sales from OEMs.
Tel: + 91 95124 2290 427/ 428/ 674/ 675/

693/ 698 Fax: + 91 95124 2290 676 Internet: http://www.mindaweb.com
Senior Officers
SL Minda, Chairman NK Minda, Managing Director (CEO) Sudhir Jain, Corp Head Finance & Planning (CFO)
Products
Minda Industries: Brake switches, gear shift switch, grips, handle bar switches, handle bar system assembly, ignition switches, lever and holder assembly, modular switch, panel switch, plunger type switch, rocker switch, rotary switch Minda Rika: Lever combination switches: Dimmer switch, hazard switch, light switch, passing switch, washer switch, wiper switch, intermittent time control, RR washer switch, wiper switch, horn switch. Panel switches: blower & A/C switch, FR fog lamp switch, hazard warning switch, RR defog switch, RR fog lamp switch, RR wiper washer switch. Power window switches: auto up & down functions, door lock, window lock Oil pressure switches HVAC panel assemblies: light switch, blower switch, air direction control, fresh and re-circulation control, temperature adjustment control Others:
Recent Developments
Corporate strategy NK Minda Group has significantly reshaped its business structure in the last four years. The company has entered into a series of equity alliances for various product streams. In areas that the company has entered, it is challenging well established leaders, to this end its initiatives for starter motors and alternators would compete with Lucas TVS. The groups initiative for
232
Ash trays & lighters, stop lamp switches, reverse lamp switches, door lamp switches, trunk/lid parking brake switches Minda TYC Front fog lamps, head lamps, high mounting stop lamps, rear for lamps, side indicators, tail lamp, warning triangles, work lamps Minda Fiamm Automotive horns Minda Impco LPG/ CNG kits
manufacturing batteries is challenging several well established battery manufacturers. NK Minda Group has already forayed overseas with its base in Indonesia and is now scouting for potential buyouts in Europe, ASEAN and North America. The group is targeting acquisitions worth INR3.25bn (51.35m, 31 March 2008) by 2010. The groups joint strategy of having a design base closer to the location of actual product development should pay off handsomely in generating domestic sales. Earlier, the group had consolidated most of its facilities located in and around Delhi to a plant in Manesar, near Gurgaon (Haryana). Divestments In February 2005, Minda Industries hived off its horn manufacturing facility to Minda FIAMM Acoustics Limited, a newly incorporated joint-venture. Joint-ventures In July 2007, Minda Fiamm commissioned a battery manufacturing unit at Pant Nager (Uttaranchal). In April 2007, Minda Industries commissioned its automotive switch manufacturing unit at its Pantnagar unit. In February 2007, Minda Industries along with AK Minda Group commissioned a joint design center at Tokyo, 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. In January 2007, Minda Industries executed a joint venture agreement with Valeo for the production of alternators and starter motors for passenger cars, commercial vehicles, two and three wheelers and industrial applications. The operations are being managed through Valeo Minda Electrical Systems India Pvt Ltd (VMESPL). The new company started operations in March 2008, with a greenfield unit at Pune built at a capital cost of INR1.2bn. VMESPL is targeting revenues of INR2.75bn annually by 2010 with intial sales directed solely at passenger car OEMs. Also in January 2007, Minda Industries signed a joint venture agreement with Valeo for manufacturing lighting systems. Also in January 2007, Minda Industries signed a joint venture with Valeo for manufacturing EGR valves In 2004, Minda Industries inked a joint-venture with FIAMM SpA, Itlay for the production of two and three wheeler horns under Minda FIAMM Acoustics Limited. Minda Industries operated plant in Delhi was brought under Minda FIAMM Acoustics Limited. In 2004, Minda Industries inked a joint-venture with FIAMM SpA, Italy for the production of automotive horns for four-wheelers under FIAMM Minda Automotive Limited as an Export oriented Unit. NK Minda group shares a joint-venture with Ashok Minda group for their international foray. The newly formed company PT Minda Automotive Asean was established in Indonesia for the production of automotive parts such as switches, lamps and horns at a capital expenditure of INR 300m ( 5.31m, 31 March 2005) and a headcount of 350. The company exports goods worth INR 350m ( 6.19m, 31 March 2005) to Indonesia presently and is expecting revenues worth INR 700m ( 12.39m, 31 March 2005) within the first year of operations. In 2003, Minda TYC Automotive Ltd a joint venture was formed between Minda Industries Limited and TYC Brother Industrial Co, Taiwan for the production of lighting products for two and three wheelers, off-roaders and four wheelers. Minda TYC achieved revenues of INR 350m ( 6.19m, 31 March 2005) in 2005. In 2001, 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, Gurgaon. Investments Mindarika has added a SMT (Surface Mount Technology) line at its plant to facilitate in-house completion of electronic work. In September 2005, Mindarika commenced production at its new Pune based switch manufacturing facility. The facility has been set up at a capital cost of
Plants
India (6): Delhi (1), Haryana (3), Maharashtra (2), Tamil Nadu (1), Indonesia (1)
Sales
Group: INR8.32bn (131.46m, 31 March 2008) Minda Industries: INR3.96bn (62.58m, 31 March 2008)
Employees
c. 2,500 (2008)
233
INR 175m (3.33m, 31 July 2005) to cope up with the demand from customers in Southern and Western regions. The switches being manufactured are primarily for four wheeler manufacturers like Mahindra & Mahindra and Tata Motors. In 2003, Minda Industries commenced operations of bar handle assembly at a plant in Waluj (Maharashtra, India).
Certifications In 1998, Mindarika was accredited with QS 9000 certification and TS 16949 & ISO 14001 in 2003. In 1997, Minda Industries was accredited with ISO 9000 status. The company was awarded ISO 14001 and OHSAS 18001 certification in 2003. The company has also implemented TQM- PQCDSM-TPS programs. Contracts In August 2008, Minda Industries announced that it had been mandated fo supplying headlamps and rear combination lamps to Volkswagen for the Polo starting 2009. Minda Impco supplies CNG fuel kits to the Maruti Suzuki Zen Estilo program. Minda Industries supplies rear combination lamps for the Bajaj Platina at its Pant Nagar plant. In 2005, Minda Industries added Robert Bosch GmbH Germany, PiaggioItaly and PMTC- France to its list. Minda Industries is the sole supplier of handle bar assembly to Bajaj Auto. Mindarika supplies to all OEMs in the southern region except Hyundai Motor India. Minda Impco is supplying CNG kits for Hino trucks being supplied to Pakistan and Bangladesh with volumes of about 300 kits per year. Mindarika supplies ride control mechanism switches for the Bajaj CT 100.
New Product Developments In 2005, Minda Industries established a design studio to facilitate innovative styling of its products. The company incurs an R&D expense amounting to approximately 5% of the total sales. Mindarika has developed a ride control mechanism switch for Bajaj CT 100. Mindarika has also developed a three pin switch for the Bajaj Chetak 4S. The switch facilitates the function of a gear shifter. Minda FIAMM has developed a new horn for Tata Motors to tackle the problem of vibration resonance of bracket in vehicles. Minda FIAMM has also developed horn with two-strip/ bent bracket horn for Suzuki Indonesia. Minda FIAMM has developed a new horn with improved acoustical features for Bajaj Auto. The company has also developed a new horn for TVS Motors. Financial Overview During the financial year ended 31 March 2008, Minda Industries generated sales worth INR3.96bn (62.58m, 31 March 2008), an increase of 2.45% compared to sales of INR3.86bn (66.77m, 31 March 2007) in 2007. Profit before tax for the period decreased by 7.4% to INR197.74m (3.12m, 31 March 2008) from INR213.55m (3.69m, 31 March 2007) in 2007. Net Profit was reported at INR157.24m (2.48m, 31 March 2008), growing 16.17% compared to INR135.35m (2.34m, 31 March 2007) in 2007. NK Minda Group generated sales worth INR8.32bn (131.46m, 31 March 2008) in fiscal 2008. Other entities in the NK Minda Group are privately held and do not publish their financial statements.
Year 2008 2007 2006 2005 2004 Net sales, INR m 3,961.00 3,866.07 2,680.52 1,962.62 1,538.44 Operating Profit, INR m 484.06 399.75 356.31 294.82 NA Profit Before Tax, INR m 197.74 213.55 208.45 152.85 105.12 Net Profit, INR m 157.24 135.35 129.55 102.15 74.26
234
Year 2008 2007 2006 2005 2004
Net sales, m 62.58 66.77 49.91 34.74 28.74
Operating Profit, m 7.65 6.90 6.63 5.22 NA
Net Profit, m 2.48 2.34 2.41 1.81 1.39
Outlook In 2005, NK Minda Group had set an ambitious target to triple its sales by 2010, achieving revenues worth INR15bn (237m, 31 March 2008). The growth strategy is underpinned by a combination of global expansion plans, large exports growth and diversification in product range through joint-ventures. The groups strong focus on technology development and absorption enables it to earn better margins in an increasingly cluttered market. To this end, the design centre initiative will help the group in progressively evolving to the next level in component development.
235
NRB Bearings
Ball and roller bearings
Address
NRB Bearings Limited, Dhannur, 15 Sir P.M. Road, Fort, Mumbai 400 001 India
Tel: +91 22 22664160 Fax: +91 22 22660412 Internet: http:// www.nrbbearings.com Senior Officers
Mr Trilochan Singh Sahney, CMD Ms Harshbeena Singh Zaveri, President Mr Devesh Singh Sahney, Director, Strategic Sourcing
NRB Bearings is Indias largest manufacturer of needle roller bearings with a 70% market share. The company also supplies cylindrical roll bearings with a market share of 16%. NRB supplies mainly to the automotive industry with smaller volume deliveries to the textile machinery, switchgear, hand tool and consumer durable industries. Overall the company produces 600 different types of bearings and commands a market share of 12% in the domestic organized sector.
NRB was incorporated in 1966 as the Needle Bearing Company, in a joint-venture between Nadella, France (with 26% stake) and Indian promoters, the Sahney family (59% stake). The company expanded into other bearing classifications and established new facilities in Aurangabad in 1980 and Waluj (both Maharashtra) in 1981. The company expanded its general bearing division at Jalna (Maharashtra) for the production of cylindrical roller bearings in 1982. Subsequently, spherical bearing production commenced at the Jalna facility. The Hyderabad (Andhra Pradesh) unit was absorbed into the company in 1991 as a result of a merger with Sahney Steel and Press Works. The Hyderabad unit currently produces stampings, needle cages, hub pin kits and connecting rod kits. Owing to its diverse product range, the company was re-christened NRB Bearings Limited in 1990. In November 2005, the Sahney family bought out Timken SAS/ Nadella's holding in the company. NRB's customers include Ashok Leyland, Force Motors, Eicher Motors, Mahindra & Mahindra, Renault Trucks, Swaraj Mazda, Tata Motors, Hindustan Motors, Maruti, Bajaj Auto, Hero Honda, Honda Motorcycles & Scooters, Kinetic Motors, LML Engineering, Majestic Auto, TVS Motors, Royal Enfield Motors, Yamaha Motor India, Brakes India, Delphi Automotive Systems, GKN India, Hindustan Hardy Spicer, MICO Bosch, Mahindra Sona, NSK (Poland), Nachi Industrial S.A., Rane, Sona Koyo Steering Systems, Spicer India and ZF Steering Gear India.
Products
Ball bearings, bearing with cage-guided needles, bottom roller bearings, crank pins, cylindrical roller bearings, fafnir housed units, full complement needle bearings, housed units, hub pin kits, inner rings, needle bushes, needle cages and rollers, needle rollers, needle thrust bearings, precision steel balls, roller thrust bearings, spherical roller bearings, tapered roller bearings, thrust bearings, wide inner ring bearings
Plants
India: Aurangabad, Hyderabad, Jalna, Thane, Waluj, Uttaranchal Thailand
Recent Developments
Corporate Strategy In recent years, NRB is focusing on exports to counter lower margins in the domestic market. The influx of Chinese and Thai made bearings have significantly hurt the pricing power of the company despite its higher quality of products. The company targets 80:20 balance between domestic and export sales. To offset the adverse effect of the India-Thailand Free Trade Agreement (FTA), NRB commissioned a greenfield facility in Thailand in October 2008. The company is keen to enter the Thai market which is dominated by Japanese suppliers and OEMs. Needle roller bearings and cylindrical roller bearings are the highest growing segments in the bearing industry. NRB is trying to penetrate into the lucrative aftermarket which returns higher margins. The company is specifically focusing on the semi-urban and rural markets. Acquisition In November 2005, the Sahney family acquired 26% stake in the company from Timken SAS/ Nadella for INR580m (10.8m, 30 November 2005). In June 2000, NRB bearings acquired Shriram Needle Bearing Industries Limited (SNL). SNL manufactures cage-guided drawn cup needle bearings, connecting rod needle cages for piston pin and crank pin along with other
Sales
Employees
NRB: c.1,350 (2008) SNL: c.205 (2008)
236
types and range of needle bearings. The company supplies to two-wheelers, four-wheelers and commercial vehicle OEMs in India for use in gear boxes, connecting rods, steering systems, chassis and suspension and industrial machinery. The company exports bearings for powered hand tools application to France, Indonesia, Italy, Kenya, Malaysia, Philippines, Portugal, Singapore, Taiwan, Thailand, UAE, UK, USA and Vietnam. SNL's domestic customers include Bajaj Auto, Denso India, Kinetic Honda, Kinetic Engineering, LML, Maruti, Mahindra & Mahindra, MICO, Sona Steering, TAFE and Tata Motors. Investments In October 2008, NRB commissioned a new bearing manufacturing facility in Thailand with an installed capacity of 30m per annum at a capital investment of INR300m (4.5m, 31 October 2008). In 2008, NRB started its greenfield manufacturing facility at Pant Nagar (Uttaranchal) at an investment of INR 250m (4m, 31 March 2008). The unit has an installed capacity of 22m ball and roller bearings per annum, with contracts to supply closely located plants of Bajaj, Mahindra and Tata Motors.

NRB Bearings spends around 2% of its annual sales on research and development. Development work is done by 20 engineers at its R&D Centre in its Thane plant.
Financial Overview
In the financial year ended 31 March 2008, NRB Bearings reported sales worth INR3.29bn (51.92m, 31 March 2008), a decrease of 6.1% compared to previous year's figure of INR3.5bn (60.44m, 31 March 2007). Operating profit decreased by 25.17% to INR593.7m (9.6m, 31 March 2008) in 2008 from INR793.4m (13.7m, 31 March 2007) in 2007. Net profit decreased 12.83% to INR346.6m (5.48m, 31 March 2008) in 2008 from INR397.6m (6.87m, 31 March 2007) in 2007. NRB Bearings registered nearly 50% growth in exports in 2008 compared to a 6% growth in domestic sales. Year Net sales, INR m 3,285.90 3,499.70 2,932.60 2,463.60 2,013.80 Gross sales, m 51.92 60.44 54.61 43.61 37.62 Operating profit, INR m 593.70 793.40 657.50 545.70 440.80 Operating profit, m 9.38 13.70 12.24 9.66 8.23 Profit before tax, INR m 529.90 599.10 526.60 435.40 330.60 Profit before tax, m 8.37 10.35 9.81 7.71 6.18 Net Profit, INR m 346.60 397.60 340.20 272.90 203.50 Net Profit, m 5.48 6.87 6.33 4.83 3.80
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. However the influx of Chinese and Thai bearings has significantly affected NRBs supplies to the replacement market leading to a considerable reduction in pricing. Citing lower sales growth in India, the company has embarked on a significant drive to increase its thrust on exports. The companys move to establish a gateway facility in Thailand will help NRB to explore business opportunities in ASEAN which have traditionally been Japanese strong holds. In the domestic market, NRB continues steady business from the OEMs. This is likely to grow with time.
237
Omax Auto
Sheet metal components, tubular welded components, precise machined components and sprockets
Address
Omax Auto Limited Automax, 5/13, Gurgaon Sohna Road Village Tikri Gurgaon 122 001 Haryana India
Omax is one of the largest manufacturers of sprockets for motorcycles in India. The company manufactures more than 500 components at its seven facilities across India. In terms of sales, the company ranks as one of the ten largest automotive suppliers in India.
Omax manufactures sheet metal tubular and machined components for the automotive industry. Hero Honda Motors is one of the largest customers of the company, accounting for 60 - 65% of the total production. Omax Auto accounts for 32% share of domestic production of engine parts, 17% of drive and transmission components, 16% of suspension and braking parts and 8% of electrical components. Omax autos clients comprise of North American vendors like Amtech International USA, Arvin Meritor USA, Atlantis Global Services USA, Cummins USA, Delphi Automotive, Tenneco Automotive; European clients like Honeywell, Piaggio Italia, Roulunds Braking, Supersprox - Czech Republic, Tenneco Automotive Belgium ; Indian OEMs like Eicher Motors, Hero Honda, Honda Motorcycle & Scooter India, Honda SIEL, Mahindra & Mahindra, Majestic Auto, Maruti Udyog, New Holland Tractors India, TVS Motors, Yamaha Motors India and Indian tier I suppliers such as Bharat Seats, Carraro Spa, Delphi Automotive, Denso India, India Nippon, Jai Bharat Maruti, Krishna Maruti, Lucas TVS, Mitsuba Sical Ltd. and Sundram Clayton Ltd.
Tel: +91 124 2219060 Fax: +91 124 2219169 Internet: http://www.omaxauto.com Senior Officers
RC Bhargava, Chairman Jatendar Mehta, Managing Director Ravinder Mehta, Managing Director KC Chawla, Enforcement Directorate (Operations) DS Sharma, Enforcement Directorate (Operations) Naresh Tandon, Enforcement Directorate (Finance)
Products
Axle bars, back plates for brake shoes, base battery set, body frames, brake pedal, carrier, chain case, chain cases, complete frame assembly, door beams, electroplated tubular components, engine guard, footrest, frame assembly, gear shafts, half shaft bars, main stand, MIG welding wire, moped parts, muffler, neck fuel filler, oil pump assembly, pedal kick starter, piston rods for damper assembly, piston rods, rocker arm shaft, rocker arm shafts, seat adjuster, seat parts, shroud fan, side cover, silencers, sprocket cam and sprocket timing, sprockets, steering column shaft, steering handle assembly, transmission shafts, transmission sprockets, trunk hinge, 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. The company is aggressively tapping the export markets to de-risk its business. Starting in 2003, the company has been able to make some breakthrough in this regard by adding certain European and South East Asian clients. The company expects to derive 15% of its sales from exports by 2008-09. Around the same time company aims to bring down Hero Hondas share in its business to 52%. 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. The company intends to become a global player in various sheet metal, 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. Investments In February 2007, Omax Auto announced an INR1.0bn ( 17.14m, 31 March 2008) investment in a new facility for supplying chassis to Tata Motors for its commercial vehicles. The company commenced supplies in 2008 as a single source supplier for various commercial vehicle programs with an installed capacity of 100,000 units per annum In 2005-06, Omax Auto added a new line at its Rewari (Haryana, India) facility to supply to Hero Hondas new scooter program at a capital cost of INR160m (2.83m, 31 March 2005). In October 2004, Omax Auto commenced production at its Bangalore (Karnataka, India) facility meant to cater to the needs of South based customers, mainly Delphi Automotive Systems, TVS Motors, Sundaram Clayton and Mitsuba Sical. The company has also added a press line at the
Plants
India: Bangalore (Karnataka)(1), Gurgaon (Haryana) (4), Rewari (Haryana) (3)
Sales
INR 7.14bn ( 112.87m, 31 March 2008)
238
Employees
c. 3,700 (2008)
facility for sheet metal component production which began operations in August 2005. The total capital outlay incurred at the new facility was INR160m (2.83m, 31 March 2005). An additional sum of INR110m (1.95m, 31 March 2005) has been earmarked for further expansion of the facility in 2005. Also in 2004, Omax Auto commenced production at a rented facility in Binola (Gurgaon, Haryana, India) as the green field is being prepared for operations. 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. A capacity expansion worth INR 140m ( 2.48m, 31 March 2005) has also been planned for the facility. In 2003-04, Omax Auto expanded production capacity adding a modern paint shop manufactured by ABB. Additionally, 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. In 2002, Omax Auto added a new facility in Manesar with an investment of over US$ 4m.
Contracts In 2005, Omax Auto was listed by TVS Motors as a supplier of complete frame assemblies for the TVS Star. TVS is sourcing the supplies from Omaxs Bangalore unit. Also in 2005, Omax Auto received three year export orders for tubular components from Tenneco, USA and Europe with an initial volume of 80,000 parts per month which is to be hiked to 100,000 parts per month in due course of time. The parts being shipped include bar pins, inner tubes and piston rods. In January 2004, Omax Auto commenced the export of drive transmissions to Delphi. The deal was valued at INR156.0m ( 2.76m, 31 March 2005). The company is also supplying piston rods to Delphi under a three year term. In December 2003, Omax Auto started supplying sprockets to Supersprox, Czech Republic in a deal worth INR4.7m ( 0.08m, 31 March 2005). In October 2003, Omax Auto commenced the export of piston rods to Delphi. The deal was valued at INR131.6m ( 2.33m, 31 March 2005). In 2003, Omax Auto supplied the first consignment of sheet metal parts to Rasmussen, Germany. The entire contract was pegged at INR14.6m ( 0.26m, 31 March 2005). Omax Auto has been supplying sheet metal components to Atlantis Global according to an arrangement worth INR47m ( 0.83m, 31 March 2005). The company has been supplying several parts to Piaggio Italy according to a deal worth INR17.8m ( 0.32m, 31 March 2005). The company has also been supplying back plates and brake shoes to Rolands braking. The contract for the supplies is worth INR47m ( 0.83m, 31 March 2005). Omax Auto has been manufacturing chain case and side cover for Hero Honda Motors. The company has been producing chassis parts for LCVs like CanterMitsubishi The company has been awarded a contract for manufacturing engine plats for Cummins, USA. Omax has concluded deals with Sundaram Clayton for the supplies of sheet metal assemblies for air braking systems. Mahindra & Mahindra has selected Omax for the supplies of machined parts. Honda Motorcycle and Scooters India has appointed Omax Auto for the supplies of certain components to the Eterno and other models in the stable. Omax has tied-up with Delphi Automotive systems India to supply of axle bars. Omax manufactures several assemblies for Maruti Udyog like panel side body, panel assembly cowl upper, member floor, cross member and sill floor side. The company manufactures frame assembly installation and extension components for the Honda City. Omax auto produces door beams for front and rear doors for the Maruti 800.
239
Omax also manufactures beam steering hanger for the Honda City. The company manufactures the chassis for various motorcycle models of the Hero Honda stable. 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. Omax supplies oil pumps assemblies for all models of Hero Honda. The company supplies piston rods for Delphi, Tenneco and Arvin. Omax supplies ball pins for Tenneco Automotives. The company also supplies sprocket for high power bikes for the European market. Omax is the single source supplier for oil pump assemblies for all models in the Hero Honda stable, transmission shafts and sub assemblies for all models of Maruti Udyog.
Certifications Omax Auto has been accredited with ISO 9001 and TS 16949 status. Infrastructure Omax houses one of Indias largest press facilities with hydraulic and power metal presses ranging from 10 ton to 400 ton capacities. The presses are used for drawing, stamping and forming operations. The company houses Indias largest welding facilities with operations like MIG welding, spot welding, projection welding, welding SPMs and robotic welding. Omax is the largest manufacturer of sprockets in India and a leading player in Asia with specific products for transmission and engine applications. The company also houses three fully conveyer based paint shops- powder and liquid coating, sourced from ABB and Intech used primarily to paint motorcycle frames. Induction harding facilities for engine and transmission components, which include gear shifter shafts, sprockets and door beams. Omax owns and operates India's largest 'computerised trinickle chrome plating plant' with a capacity of 10 million dm per month. The company also has production facilities for oil pump assemblies and subassemblies of two and four wheelers.
Financial Overview In the year ended 31 March 2008, Omax generated sales worth INR7.14bn (112.87m, 31 March 2008) an increase of 3.5% compared to previous years result of INR6.89bn (119.08m, 31 March 2007). The company registered profit before tax for the year under review at INR235.8m (3.73m, 31 March 2008), down 35.05% year on year. Net profit for Omax Auto in the year reached INR161m (2.54m, 31 March 2008) compared to INR260.3m (4.50m, 31 March 2007) in 2007, a decrease of 38.14%.
Year 2008 2007 2006 2005 2004 Gross sales, INR bn 7,143.50 6,895.40 5,785.90 5,297.90 4,736.10 Operating Profit, INR m 798.8 771 573 554.3 426.7 Profit Before Tax, INR m 235.8 363.1 304.6 302.7 264.6 Net Profit, INR m 161 260.3 189.2 202.8 180.6
Year 2008 2007 2006 2005 2004
Gross sales, m 112.87 119.08 107.73 93.77 88.47
Net Profit, m 2.54 4.50 3.52 3.59 3.37
Outlook Omax has registered a CAGR of nearly 40% over the past five years. The
240
companys ambitious de-risking plan has made a strong start with the Tata Motors contact for supplying chassis on a single source basis. Also the companys key customer Hero Honda has been posting strong unit sales despite weakening economic scenario.
241
Pricol
Instruments and instrument panels and other components
Address
Pricol Post Box No. 6331, 1087-A, Avanashi Road, Coimbatore 641 037, Tamil Nadu, India
Pricol is Indias largest manufacturers of automotive instruments. The company commands a 43% market share in the instrumentation segment. Pricol also manufactures disc brakes for two wheelers, oil pumps, chain tensioners, data acquisition and control systems, electronic road speed limiters, engine monitoring systems, HVAC units and windshield washer motor kits.
Pricol was established in 1972 at Coimbatore (Tamil Nadu) and started commercial production in 1975. It began as a supplier of automotive instruments with an initial capacity of 400,000 dashboard instruments per annum. In 1988, the company established an assembling unit in Gurgaon (Haryana) with an initial capacity of 500,000 instruments to serve its customers in North India. Two more plants were added to Pricol's existing facility at Coimbatore in 1999 to rationalise its manufacturing activities. Denso holds 12.5% equity in the company. Its customers include Ashok Leyland, Bajaj Auto, Denso India, Eicher Motors, General Motors India, Hero Honda, Honda Motorcycle & Scooter India, Maruti, Mahindra & Mahindra, Swaraj Mazda, Tata Motors, Toyota Kirloskar, TVS, Visteon and Yamaha Motors. Pricol exports about 12% of its sales to Australia, Canada, Egypt, Europe, Mexico, Middle East, New Zealand, South America, Turkey and the USA. Pricol exports to Derbi (Spain), Piaggio (Italy), Suzuki (Malaysia, Philippines and Thailand), Jawa Moto (Czech Republic), Lister Petter (UK). Parker Hannifin (UK), Sab Wabco (UK), AGCO (USA), John Deere (USA), Massey Ferguson (UK), Simplicity (USA), BMC (Turkey), Askam (Turkey), Deutz (Germany), Eaton (Brazil), Garrett Honeywell (France), Iveka (Germany) and Namad Awar (Iran).
Tel: +91 422 5336000 Fax: +91 422 5336299 Internet: http://www.pricol.com Senior Officers
Vijay Mohan, Chairman and CEO VG Ratnam, Senior Vice PresidentBusiness Development Trevor Mendoza, General ManagerBusiness Development Vinod R Shankar, General ManagerBusiness Development D Raghunathan, General ManagerBusiness Development K Janardhanan, Senior Vice PresidentManufacturing Engg. & Production K Udhavakumar, Senior Vice PresidentProduct Development & Engg. & Materials

Ammeters, auto decompression units, auto fuel cocks, battery condition indicators, chain tensioner assemblies, cigarette lighters, combination meters, data acquisition and control systems, disc brakes for two-wheelers, electronic hour meters, electronic road speed limiters, electronic RPM meters, electronic textile counters and controls, engine monitoring systems, fare meters, fuel gauges, fuel level sensors, gears & pinions, handle bar switches, HVAC Units, hub drives, idle speed control valves, instrument clusters, mechanical and electrical pressure gauges, mechanical and electrical temperature gauges, mechanical RPM meters, mechanical speedometers, oil level gauges, oil level switches, oil pumps for two-wheelers and industrial engines, precision machined components, pressure sensors, pressure switches, programmable electronic speedometers and tachometers, quartz clocks, quartz hour counters, Corporate strategy In recent years Pricol has been swiftly building its international business with off-shore manufacturing setups in its core product streams. The company has set an objective of becoming the second largest supplier of instrument clusters globally. The company is also looking at consolidating its business and making its plants self sufficient in terms of supply capability. In the domestic market Pricol is expanding its second line of offerings. To this end, Pricol has signed a number of technological tie-ups and added a number of products to its portfolio. Pricols global plan includes offering products for non-high end cars where its partner Denso has a dominant presence. Off late Pricol has been losing market share in instrument clusters to smaller players, a development that Pricol is preparing to counter with its aggressive technology build-up. The company has won key contracts in both the global locations and domestic market. In 2007, Pricol generated 18% of its sales through exports while two wheelers accounted for a 60% share of the domestic sales. In 2007, Pricol is targeting to generate 25% of its sales through exports by 2010. Pricol also sees global opportunity in the design field and logistics in the domestic market. Joint-ventures In January 2006, Pricol Technologies formed a joint venture CarceranoPricoltech India Pvt Ltd with Italian firm Carcerano Srl. to provide complete range of design, styling and product engineering to the Indian automotive industry. In 2003, Pricol formed a technical alliance with US based Directed Electronics Inc., to manufacture and market advanced versions of vehicle security systems in India under a new company, Xenos Technologies Ltd.
242
sintered components, speed sensors, speedometer cables, temperature sensors, voltmeters, warning lamps, wind shield washer motor kits.
Plants
Coimbatore (3), Pune (1), Gurgaon (1), Uttaranchal (2), Indonesia (1)
Sales
INR6.06bn (96.31m, 31 March 2008), (Year to 31.03.08)
Employees
c. 4,600 (2008)
In January 2001, Pricol entered into eight-year collaboration with Denso (Japan) for technological assistance in vacuum switching valves. Further, Pricol signed a seven year technical assistance deal with Denso for sensors for four-wheeler application, 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, speed sensors, analog type combination meters. Pricol has a technical alliance with Kojima Press Ind. Co. Ltd., Japan for production of heater control devices for four-wheelers in the Toyota stable. Pricol has a technical alliance with Nippon Seiki for the production of inner movement assembly for two wheeler instruments; instruments, senders, parts and components for Hondas EK model car for India and C-2 type 45 degree angular speedometer movement for two wheelers. Pricol has a technical tie-up with NHK Springs Japan for chain tensioners for two wheelers. Pricol also has a technical assistance set-up with Toyoda Gosei for nitrile rubber floats for fuel sensors.
Investments In October 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. In 2007, Pricol commissioned its first manufacturing facility at Pant Nagar to cater to Bajaj Auto at a capital cost of INR 200m (3.45m, 31 March 2007). The plant has an installed capacity of 1m sets of speedometers, fail sensors, gear systems and oil pumps. Also in 2007, Pricol commenced production at its second facility at Pant Nagar. The plant will have an installed capacity of 1m sets of instruments and field sensors for supplies to Tata Motors and Mahindra & Mahindra. In April 2007, Pricol commissioned a plant at Karawang, Indonesia with a capital investment of INR 180m (3.21m, 30 April 2007) for supplying to local units of TVS Motors and Bajaj Auto and to Denso for its Phillipines and Thailand based plants. The plant manufactures 0.85m sets of instrument clusters to Bajaj & TVS while the balance is supplied to Denso. Also in 2007, Pricol completed the purchase of balance 30% shares in English Tools & Castings making it a fully owned subsidiary. In December 2006, 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 38.25m (0.66m, 31 December 2006). The plant is expected to commence production by March 2008. In June 2005, Pricol acquired a 70% stake in English Tools & Castings, a Coimbatore based Aluminium Die Casting and machining operation with two facilities in Coimbatore. In 2001, Pricol commenced production of disc brakes. Contracts In 2007, 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 140,000 units per annum. Also in 2007, Pricol won a supply order from Toyota India for supplies to its small car program in India. Pricol is the sole supplier of MAP sensors to Maruti. Pricol exports speedometers to Suzuki, Thailand. Pricol supplies instrumentation for Maruti vehicles.

Pricol spends approximately 3.5% of its sales on research and development. Pricol is presently developing crank position sensor, cam position sensor, engine gas recirculation valve and lubrication oil pumps. Electronic tachograph: Pricol has been working on the development of an electronic tachograph which records the movement of the vehicles in the past 24hours. The reports generated by the systems can be used as a legal
243
acknowledgment in the advent if an accident. The system records various parameters like speed, distance and time. The system is being developed by Pricol specifically for an overseas company which has a buyback arrangement with its Indian counterpart. The company is also planning to launch the product for Indian markets. The government rules demand that tachographs be fitted to vehicles carrying hazardous material. Pricol has developed a fleet monitoring system that samples data data over a 20 day period. Centralised Lubrication System: provides a solution to avoid manual error and increased costs, by lubricating the vehicle automatically at the required points with the required quantity and moreover at required intervals. 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 device has application in commercial vehicles. Vehicle Monitoring System: It is an on - board computer system that provides essential vehicle information for better fleet control. The OBD generates trip sheets, over speeding report, stoppage report, heavy acceleration report, heavy braking report, last minute graph, maintenance schedules and keeps track of service history. The Vehicle Monitoring System can be fitted in all HCVs, MCVs & LCVs.
Certificates
Pricol has been accredited with ISO 14001 & TS 16949 certificates.
Financial Overview
In the financial year ended 31 March 2008, Pricol reported sales of INR6.06bn (96.31m, 31 March 2008), a decrease of 3.94% from INR5.83bn (100.75m, 31 March 2007) in the financial year 2007. Profit before tax decreased by 57.03% to INR218.33m (3.47m, 31 March 2008) compared to INR508.13m (8.78m, 31 March 2007) in the previous year. Net profit also plummeted by 47.3% from INR362.13m (6.25m m, 31 March 2007) in 2007 to INR190.83m (3.03m, 31 March 2008) in 2008. Gross sales, INRbn 6.06 5.83 4.82 4.49 3.03 Gross sales, m 96.31 100.75 89.69 79.47 56.60 Operating profit, INRm 832.5 984.53 807.43 909.76 550.94 Operating profit, m 13.22 17.00 15.03 16.10 10.29 Profit before tax, INRm 218.33 508.13 428.96 622.53 Net Profit, INRm 190.83 362.13 332.88 424.81 151.98 Net Profit, m 3.03 6.25 6.20 7.52 2.84
Year 2008 2007 2006 2005 2004 Year
Profit before tax, m 3.47 8.78 7.99 11.02
2008 2007 2006 2005 2004
Outlook Pricol has diversified its business into new and unrelated business
segments such as logistics and designing. It is working towards the long term aim of being the second largest instrument cluster supplier globally. It views these as long term growth areas. Further the design business offers export potential which it plans to leverage. 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. Its large list of domestic customers spread across segments gives Pricol a steady market growth potential. Pricol has begun its international foray by establishing a plant in Iran and the ASEAN region. Being closer to its international customers will Pricol enlarge its customer base while reducing its indirect tax liabilities.
244
Rane Brake Linings

Friction materials
Address
Rane Brake Linings Limited Plot No. 30 Ambattur Industrial Estate Chennai 600 053 Tamil Nadu
Rane Brake Linings (RBL) is the largest manufacturer of friction materials in India. It supplies to all the automotive segments from its four facilities based in the southern region of India.
RBL was established in 1964 with a technical agreement with Small & Parkers, UK. In 1982, the company entered into an agreement with Laylock Engineering, a GKN subsidiary to expand its range of clutch linings. Currently, Nisshinbo Industries (Japan) holds a 10% stake in the company. RBL's customers include Amalgamations Repco, Automotive Axles, Brakes India, Caterpillar, Ceekay Daikin, Clutch Auto, Kalyani Brakes, LuK India, Mando Brake Systems and Tatra Udyog. The company exports its products to Australia, Bangladesh, Fiji, Israel, Japan, Mauritius, Middle East, Sri Lanka and UK.
Tel: +91 44 2625 0566/ 0766/ 1666/ 1766 Fax: +91 44 2625 0759/ 8883 Internet:
http://www.ranebrakelinings.com
Senior Officers
L Lakshman, Chairman & Managing Director L Ganesh, Vice Chairman PS Rao, President V Krishnan, Vice President, Finance & Secretary S Badrinarayan, General Manager, Marketing
Recent Developments
Corporate strategy In recent years, RBL has focused on exports to improve its margins. The company targets exports and domestic sales split of 15:85. With technical assistance from Nisshinbo, 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. The company has intensified its focus on R&D and plans to supply new, higher value added products to improve its margins which have been stressed due to higher input costs. Divestment In 2005, RBL sold its holding in Rane (Madras) Ltd as part of the restructuring drive initiated by the group. RBL generated cash proceeds worth INR88.9m (1.6m, 31 March 2005) from the sale. Joint-ventures Rane Brake Linings has a technical and financial tie-up with Nisshinbo Industries, Japan. The latter holds 10% equity in the company. RBL has a technical tie-up with TMD Friction, UK, for production of railway brake blocks. In 2004, RBL entered into an agreement with a Jordanian company for the production of brake linings. Under the agreement, RBL supplies brake linings to the Jordanian company and markets them in India. Investments In June 2008, Rane Brake Linings started the first phase of its new manufacturing unit at Trichy (Tamil Nadu, India) to supply asbestos free brake pads to Maruti Suzuki, Tata Motors, Toyota , Honda and Nissan. Built at an investment of INR250m (3.67m, 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. Contracts RBL has been appointed as a single source supplier for the Chevrolet Tavera. RBL is the supplier to the Ford Ikon model.
Products
Asbestos and non asbestos brake linings, asbestos and non asbestos disc pads, asbestos and non asbestos clutch facings, railway brake blocks
Plants
India: Tamil Nadu (2), Andhra Pradesh, Pondicherry
Sales
Employees
c. 950 (31 March 2008)

During the financial year 2008, RBL incurred expenses amounting to 1.5% of total sales on research and development.
245
Certifications In 2003, RBL was awarded the coveted Deming award. RBL has been accredited with ISO 9001 status.
Financial Overview
In the financial year ended 31 March 2008, Rane Brake Linings generated sales worth INR1.81bn (28.6m, 31 March 2008) against previous year's sales of INR1.79bn (31.06m, 31 March 2007). Profit before tax was reported at INR111.95m (1.77m, 31 March 2008), decreasing by 47.3% as against INR212.47m (3.67m, 31 March 2007) in 2007. Net profit for the year was INR89.41m (1.41m, 31 March 2008), significantly less compared to INR168.87m (2.92m, 31 March 2007) in 2007. Drop in net profilt was attributed to increase in input costs and lower foreign exchange conversion rates. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR m 1,810.23 1,796.73 1,577.81 1,396.06 1,386.19 Net sales, m 28.60 31.03 29.38 24.71 25.89 Operating Profit, INR m 112.20 323.23 277.52 310.01 298.37 Operating Profit, m 1.77 5.58 5.17 5.49 5.57 Profit Before Tax, INR m 111.95 212.47 190.52 223.70 207.69 Profit Before Tax, m 1.77 3.67 3.55 3.96 3.88 Net Profit, INR m 89.41 168.87 137.70 190.83 156.09 Net Profit, m 1.41 2.92 2.56 3.38 2.92
Outlook
RBLs margins have shrunk rapidly due to higher input costs and the inability to pass on the cost to OEMs. 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.
246
Rane Engine Valves

Engine valves
Address
Rane Engine Valves Limited, Level-5, Anmol Palani Post Box No. 4964 88 GN Chetty Road T Nagar, Chennai 600 017 India
Rane is the second largest manufacturer of engine valves in India. It operates through two subsidiaries from seven plants based in southern India.
Rane operates two subsidiaries: Kar Mobiles Ltd (KML): is the second largest manufacturer of engine valves in India producing 78m valves per annum. The company was established in 1974. Exports contribute nearly 50% of the company's sales. Kar Mobiles has an international client base comprising Federal Mogul (USA), GM (USA), Hatz (Germany), Lister Petter (UK), Lombardini (Italy), MAN, Mireless Blackstone (UK), MVI (Germany), Pielstick, Ruston, Vege (Germany), Wartsila Diesel and Wiscon (USA). The company's domestic customers include Ashok Leyland, Bharat Earth Movers, Cummins India, Diesel Locomotive Works, Escorts Tractors, Force Motors, L&T- John Deere, Mahindra & Mahindra, Maruti Udyog, Same Greaves Tractors, Tata Motors and VST Tillers Tractors. Rane Engine Valves Ltd (REVL): is a leading supplier of engine valves and clutch actuators. The company was established in 1959. Rane Engine Valves derives 20% of its sales from exports. REVL supplies to domestic customers including Ashok Leyland, Cummins India, Eicher Motors, Escorts, Hero Honda Motors, Hindustan Motors, Hyundai Motor India, Mahindra & Mahindra, Maruti Udyog, Tata Cummins, Tata Motors and TVS Motors. Its export customers are Deutz (Germany), New Holland Tractors (UK), Volkswagen (Germany), TRW (Europe and USA).
Tel: +91 44 2815 3182-3 Fax: +91 44 2815 5626 Internet: http://www.rane.co.in
Kar Mobiles Limited, No.26, 1st Phase Post Box No. 5835 Peenya Industrial Area Peenya, Bangalore 560 058 Karnataka
Tel: +91 80 2839 4711-2 Fax: +91 80 2839 4713 Internet: http://www.karmobiles.com Senior Officers
L Lakshman, Chairman, Rane Engine Valves L Ganesh, Vice Chairman & Managing Director, Rane Engine Valves S Srinivasan, President, Rane Engine Valves B Swaminathan, Vice President, Finance L Ganesh, Chairman, Kar Mobiles V Ramachandran, Vice Chairman and Managing Director, Kar Mobiles Atul Arora, Deputy General Manager, Marketing
Recent Developments
Corporate strategy In recent years, REVL and KML are focusing on the export market for engine valves. The company has secured two key supply contracts in Europe whiel negotiating on additional business from European customers. To support exports, REVL has established a greenfield export oriented unit. The company has a strong market presence in India through its large customer base and supplies to all major vehicle makers. Rane Engine Products has increased its focus on its core area, engine valves, and divested from its camshaft business and stakes in other group companies. Divestments In 2004, REVL sold its holding in Rane Madras Ltd for INR29.13m (0.54m, 31 March 2004). In August 2003, REVL sold its camshafts manufacturing plant to Mahle Migma for INR180m (3.58m, 31 August 2003). Joint-ventures In 1997, REVL signed a technical alliance with TRW Automotive for a 10year period. Further, TRW holds 10% equity in REVL. KML has a technical collaboration with TRW for product and process technologies. REVL has a technical collaboration with Bosch Automotive systems for production of clutch actuators in India. Investments In March 2005 Rane Engine Valves set up an export oriented unit (EOU) at
Products
Engine valves, clutch actuators
Plants
Andhra Pradesh (2), Karnataka (2), Tamil Nadu (2)
Sales
INR1.98bn (31.35m, 31 March 2008)
Employees
247
Kar Mobiles: 565 (31 March 2008) Rane Engine Valves: 1,300 (31 March 2008)
Visakhapatnam (Andhra Pradesh) with an investment of INR300m (5.31m, 31 March 2005) with a capacity of 5m units per annum. 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 (3.54m, 31 March 2005).
Contracts In November 2005, REVL secured a supply contract for the VW Passat and a Seat model. The contract began in 2007 and is worth INR118m (2.2m, 30 November 2005) per annum. In June 2004, REVL began supplies of engine valves to Yamaha (Taiwan and Thailand). In 2003, REVL signed a five-year supply contract with Germany-based Deutz. The contract was worth INR121m (2.4m 31 August 2003) and had doubled over the previous contract. REVL is the sole supplier of engine valves to Deutz. Certification In 2003, REVL won the Deming prize. REVL has been accredited with QS 9000, ISO 14000 and TS 16949 certifications for all four production facilities. Kar Mobiles has been accredited with ISO 14001 and QS 9000 certifications.
Financial Overview
In the financial year ended 31 March 2008, Rane Engine Valves reported sales of INR1.98bn (31.35m, 31 March 2008), an increase of 7.78% over the previous year's sales of INR1.84bn (31.8m, 31 March 2007). Profit before tax decreased by 80% to INR41.04m (0.65m, 31 March 2008) in 2008 from INR208.96m (3.61m, 31 March 2007) in 2007. Net profit decreased by 83% to INR24.2m (0.38m, 31 March 2008) from INR146.49m (2.53m, 31March 2007) in the same period last year. The shapr drop in earnings was attributed to higher cost of materials. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR m 1,984.13 1,840.90 1,599.84 1,582.05 1,402.49 Net sales, m 31.35 31.79 29.79 28.00 26.20 Operating Profit, INR m 188.00 326.11 303.42 322.13 317.73 Operating Profit, m 2.97 5.63 5.65 5.70 5.94 Profit Before Tax, INR m 41.04 208.96 204.25 241.24 245.66 Profit Before Tax, m 0.65 3.61 3.80 4.27 4.59 Net Profit, INR m 24.20 146.49 144.60 166.85 155.72 Net Profit, m 0.38 2.53 2.69 2.95 2.91
Outlook
Raw material prices have significantly hurt REVL and KMLs profits in the last five years. The price increase of special steel used for valve production was steeper than that of ordinary steel leading to considerable pressure on margins. However the prices have now corrected and margins are expected to improve. Rane is the product market leader in India and through its strong relationships with major domestic customers, it is likely to win new business and maintain its growth. Furthermore, its exports business is developing to a significant proportion of its sales.
248
Rasandik
Sheet metal components, assemblies and subassemblies and tools & dies
Address
Rasandik Engineering Industries India Limited 39, Paschimi Marg Vasant Vihar New Delhi- 110 057
Rasandik Engineering Industries (REIL) is a major supplier of sheet metal components and tooling to the automotive industry. It is the first Indian supplier of tailor welded blanks in the domestic market. The company also supplies to the white goods sector.
Rasandik was incorporated in 1984 initially with the objective of localising production and supply of complicated toolings, which were largely imported by the automotive industry. In 1986, REIL added sheet metal components to its product range. Rasandik classifies its business under two heads: Sheet metal components, assemblies and sub-assemblies Tools and dies REIL supplies to automotive OEMs like Maruti Suzuki, Honda SIEL, GM India, Fiat India, HM; two-wheeler manufacturer HMIL; LCV manufacturer Swaraj Mazda; tractor manufacturer New Holland, Sonalika, Renault. The company also supplies press tools and dies to Tata Motors, ICM, Renault, Fiat, GM, Uniproducts, HM, Hero Motors, Honda SIEL, TVS Motors and HMIL.
Tel: + 91 11 2614 9276- 77 Fax: + 91 11 2615 9232 Internet: http://www.rasandik.com Senior Officers
SC Kapoor, Chairman Rajiv Kapoor, Managing Director G Bhattacharya, Senior Manager Sales Arati Raina, Senior Engineer- Exports in charge VK Saxena, General Manager- Operations
Products Recent Developments

Assemblies, body parts, dies, exhaust systems, fuel tanks, suspension parts, tooling, sub-assemblies- rear axle, locator shock absorber, wish bone, cross member Corporate strategy In recent years Rasandik has made heavy investments for setting up the first of its kind Tailor Welded Blank (TWBs) facility in India. Passenger cars in developed markets use around 14 TWBs per vehicle. Rasandik expects Indian vehicles to use around 4 TWBs per unit by 2011. Being the sole vendor specialising in TWBs, Rasandik expects strong revenue growth with healthy margins. Rasandiks 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. Joint-ventures REIL has a technical collaboration with Yachio Industry Co (Japan) for fuel tank production. Investments In 2006, REIL commissioned Indias first tailored blank welding system. The TB welder of type LPQ3000 produces laser welded tailored blanks. In 2005, REIL expanded the capacity at its tool room facility in the Gurgaon (Haryana, India) plant by 100% to meet increasing demands from OEMs. The expansion was specifically carried out in areas of CAD, CAM design, CNC manufacturing and assembly. Also in 2005, REIL added a press shop at its facility in Gurgaon (Haryana, India). Also in 2005, REIL acquired land for a proposed press shop and assembly facility in Pune. Contracts REIL supplies tailor welded blanks for the Maruti Suzuki SX4 program. REIL supplies tailor welded blanks for the Maruti Suzuki Swift program. In 2005, REIL was awarded the contract for supplies of body frames for the TVS Apache. In May, 2005, REIL signed a five-year MoU with Yarema Die & Engineering,
Plants
Gurgaon (Haryana, India) (1), Uttar Pradesh (1)
Sales
INR 1.89bn ( 29.80m, 31 March 2008)
Employees
601 (31 March 2008)
249
USA for the supply of supplier of press tools and dies from REILs Gurgaon facility. The MoU has an extension period of 5 years. The contract includes supplies of progressive dies. In April 2005, REIL received an order for tooling from Hero Motors. In 2004, REIL received fresh orders from Tata Motors for the production of press tools and dies. Also in 2004, REIL received an order from TVS Motors for the production of press tools and dies. REIL supplies fuel tank for Honda Activa from Gurgaon. Maruti sources fuel tanks for the Omni from REILs Gurgaon facility. REIL is the single source supplier of fuel tanks for the Maruti Omni program. The company also supplies fuel tanks for the Maruti Alto, Versa and Wagon R. REIL also supplies to Honda Siel and Sonalika Tractors from the Gurgaon facility. In case of Honda Siel the company is the sole supplier of beam assembly for the Honda City program. The Uttar Pradesh facility serves clients like Swaraj Mazda, GM India and Fiat India.
Infrastructure Uttar Pradesh: The facility has press lines, fuel tank lines, weld shop, exhaust line and paint shop. The facility has press lines of 1200 ton, 630 ton, 2x 400 ton and 315 ton capacity; IT guns, conventional PWSs, nut welding facilities; paint shop equipped with spray pre-treatment with autodosing system, wet on wet coating paint system using hydro wash booths, paint kitchen feeding 5 colours & clear coat, powder coating for component sizes of 750x750x1750mm and CNC pipe bending facilities. Gurgaon: REIL manufactures tools and dies at its Gurgaon facility. The facility is equipped with press lines, weld shops, fuel tank lines and paint shop. The facility has press lines of 630 ton, 400 ton, and 2x 200 ton; moving bolsters of 2500x 1700mm, hydraulic presses of 300 ton, 200 ton and 120 ton. Additionally, the facility has 160x2, 125x2, 100x2, 63x2, 800 ton, 2x500 ton and 2x 250 ton press lines; welding facilities like robot spot welding, robot MIG welding, integral transformer guns for assembly, nut welding and stud welding; water based flow coat line (salt spray up to 204 hours), CED paint facility (salt spray upto 800 hrs); tool room with CNC machining centre, CAD/CAM facilities, die spotting press and CMM. Additionally, REIL has a designing centre in Delhi. Certifications REIL has been accredited with ISO/TS 16949 and ISO 14001 status.
Financial Overview In the financial year ended 31 March 2008, REIL generated sales worth INR 1.89bn ( 29.80m, 31 March 2008), a growth of 7.31% compared to sales worth INR 1.76bn ( 30.36m, 31 March 2007) in 2007. Profit before tax grew over 110% to INR 114.9m ( 1.82m, 31 March 2008) from INR 54.62m ( 0.94m, 31 March 2007) in 2007. Net profit for the year was INR 59.24m (0.94m, 31 March 2008), an increase of 81.66% compared to INR 32.61m ( 0.94m, 31 March 2007) in 2007.
Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 Net sales, INR m 1,886.25 1,757.71 1,775.97 1,695.71 1,242.13 Net sales, m 29.80 30.36 33.07 30.01 Operating Profit, INR m 196.59 163.19 154.32 163.60 111.84 Operating Profit, m 3.11 2.82 2.87 2.89 Profit Before Tax, INR m 114.9 54.62 78.69 82.18 40.37 Profit Before Tax, m 1.82 0.94 1.47 1.45 Net Profit, INR m 59.24 32.61 49.7 54.61 25.25 Net Profit, m 0.94 0.56 0.93 0.96
250
2004
23.20
2.08
0.75
0.47
Outlook Rasandik clearly enjoys a first mover advantage with TWB technology.
Weight reduction programs initiated by OEMs will help Rasandik in gaining supply contracts to vehicle programs, particularly with Maruti where the technology is being widely adapted in the new programs after it was initiated on the Swift. Demand for tooling is expected to remain sluggish in the wake of the financial crunch, more so for Rasandik as it had invested in a tooling facility four years ago with supplies dedicated towards export markets. 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.
251
Remsons
Auto control cables and gear shifters
Address
Remsons Industries Ltd, 88B, Government Industrial Estate, Kandivli (West), Mumbai - 400 067, India
Remsons Industries is the largest producer of automotive control cables in India. The company churns out 25 million pieces of cables annually and is amongst the largest players in the domestic market.
Formed as Remsons Cables Pvt Ltd in 1971, the company went Public in 1986 and was rechristened Remsons Industries. The company manufactures control cables for automotive and general engineering applications. The company has manufacturing setups at four locations in India of which are engaged in the production of auto cords and auto control cables. The company diversified into production of electronic safety devices in 2000. In 2005, Remsons amalgamated group companies Daman Auto Industries Ltd, Remsons Auto Engineers Ltd and Remsons Auto Industries Pvt Ltd into Remsons Industries. Remsons customers consists of domestic OEMs such as Ashok Leyland, Bajaj Auto, Eicher, Fiat India, Force Motors, Hero Honda, Hindustan Motors, Kinetic Motor Company, LML, Mahindra & Mahindra, Royal Enfield, Tata Motors, TVS and Yamaha. Remsons supplier customers are Behr India, and Subros. 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.
Tel: + 91 22 2868 3883 Fax: +91 22 2868 2487 Internet: http://www.remsons.com Senior Officers
V Harlalka, Chairman Krishna Kejriwal, Managing Director Amolak Jhawar, CEO (Mumbai Division) Sunil Mishra, Marketing Manager Sher Singh, Director
Products
Body cables, control cables, gear shift mechanism and speedometer cables
Plants
Daman, Gurgaon , Mumbai (2)
Recent Developments Increase in raw material prices kept the company from
growing in the past few years. The company has overcome the adverse period following labour unrests. It also lost market share in the period. Remsons now focuses on high-value added services and components, moving away from the twowheeler cable business which was once its core business. Previously the company had entered non-automotive electronics business but didnt gain much from the exercise. The brake shoe business which was the companys first diversification outside the cable business didnt grow much. 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. Currently, exports contribute 12% to its sales, while aftermarket accounts for 19% and the balance is generated through OEM sales. The company plans to increase its marketing initiatives and target greater exports. Remsons targets the European market through Remsons Europe for various global orders. Besides the company is rationalising its production footprint where higher cost locations have been marked for producing higher value products. Divestments In October 2005, Remsons approved the closure of its Pune unit. The company announced the closure of its brake shoe business at the facility while the automotive cable production was transferred to the Gurgaon plant. Joint-ventures In November 2007, 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. The partners had jointly committed INR100m in the form of capital investment for the joint-venture named Orschelm Remsons Technologies Pvt Ltd. Orscheln had earlier divested its passenger car businesses in 1994 to Dura. Remsons has a technical collaboration with Sila Holding Industriale Italy for
Sales
Employees
550 (31 March 2008)
252
the production of the gear shifter mechanism with push-pull cables. Contracts Apart from contracts with Indian OEMs Remsons has been exporting cables to GM USA, Canada and Mexico for close to a decade. Remsons is a lifetime supplier for the GM Hummer. Remsons also exports cables to countries like Belgium, UK, Italy, Nepal, Netherlands, Singapore and Sri Lanka. The company supplies to the Tata Indica Vista program. In 2006, Remsons commenced supplies of parking brake safety cables under a two year contract to a major European commercial vehicle manufacturer. In September 2005, Remsons began supplying speedometer cables to Ashok Leyland. In 2004, Remsons received supply orders of gear shifters for the Piaggio Ape program. Supply program has been scheduled to begin in February 2006 with initial volumes of 3,500 units per month. The company supplys all cable requirements for the GM Chevrolet Tavera program. Remsons supplies gear shifters for the Fiat Palio/Siena/Petra in India, Brazil and South Africa. Remsons accounts for 70% of cable requirements of the Tata Indica program. Remsons accounts for 85% of Hero Hondas requirement of control cables.

Remsons is accredited with developing friction free cables using polysil, which is an indigenously developed substitute. Friction free cables help retard the engine earlier hence cutting fuel consumption. Now it is mandatory for all automobile manufacturers in the country to use friction free cables.
Certifications Remsons has been accredited with ISO 9001 & ISO 9002 and QS 9000 status.
Financial Overview In the financial year ended 31 March 2008, Remsons Industries recorded net sales worth INR 531.47m ( 8.44m, 31 March 2008) compared to sales worth INR 501.47m ( 8.66m, 31 March 2008), registering a revenue growth of 6.03%. The company registered an operating profit of INR 26.09m ( 0.45m, 31 March 2008) compared to a loss of INR 26.09m ( 0.45m, 31 March 2007) in 2007. For the third year in a row, the company continued o post a net loss with 2008 losses totaling INR 11.63m ( 0.18m, 31 March 2008). Losses were largely attributed to slower than expected sales to new vehicle programs and increasing input and production costs.
Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR m 531.47 501.23 409.51 472.4 449.67 Net sales, EUR m 8.44 8.66 7.63 8.36 8.40 Operating profit, INR m 17.92 -26.09 -10.8 27.6 50.37 Operating profit, EUR m 0.28 -0.45 -0.20 0.49 0.94 Profit before tax, INR m -12.69 -57.77 -38.28 1.07 23.37 Profit before tax, EUR m -0.20 -1.00 -0.71 0.02 0.44 Net Profit, INR m -11.63 -41.06 -26.27 0.51 10.23 Net Profit, EUR m -0.18 -0.71 -0.49 0.01 0.19
Outlook Having lost a significant market share to its rivals, Remsons is gearing up to make a come back. The companys plan of focusing on niches is a viable way to ease margin pressures. Remsons has firmed up its export plans with certain contracts awarded recently that are strategically significant and might translate into much larger sales.
253
Rico Auto
Ferrous and aluminium components
Address
Rico Auto Industries Ltd 38km stone, Delhi-Jaipur highway Gurgaon 122001 Haryana India
Tel: +91 124 2824000, 5032200 Fax: +91 124 2824200, 2824300 Internet: http://www.ricoauto.com Senior Officers
Chandra Mohan, Chairman Arvind Kapur, Managing Director Arun Kapur, Joint Managing Director OP Aggarwal, Executive Director, Finance
Rico Auto group is an integrated manufacturer of ferrous and aluminium automotive components and assemblies with four facilities located in North India. In the last decade the company has expanded massively, entered into the European and North American markets and set up software, design & development centre. It supplies to the passenger car, commercial vehicles, two-wheelers and system supplier customers.
The Rico group consists of four companies, the flagship Rico Auto Industries (contributing 74.1% to sales in 2008), FCC Rico Ltd (contributing 15.9% to sales in 2008), Rico Auto Industries Inc (USA) and Rico Auto Industries (UK) Ltd. Ricos automotive components business now accounts for 100% of its sales after it divested its agro oils business. The companys exports have seen an accelerated growth in recent times. In 2008, Rico exported components worth INR1.43bn (22.59m, 31 March 2008). To increase its reach in the key markets of Europe and North America, company has established subsidiaries Rico Auto UK, London (UK) and Rico Auto USA, Auburn Hills, Michigan (USA). Rico Autos customers in India include Delphi, Hero Honda, Honda Motorcycles and Scooters India, Honda SIEL Cars, Honeywell, Maruti, Tata Cummins and Tata Motors. It supplies Caterpillar, Cummins, Detroit Diesel, Ford and GM in the USA, Caterpillar, Cummins, DaimlerChrysler, Ford, Honeywell, Jaguar, Land Rover and Volvo in Europe and Komatsu-Cummins and Matusaka Engineering in Japan. FCC Rico supplies to Hero Honda Motors India, Honda Motorcycles & Scooters India, Honda SIEL Cars, Bajaj Auto, Suzuki Motorcycle, Yamaha Motors India and Rico Auto Industries.
Products
Balance shaft assembly, brake drums, brake panel assembly, cam covers, clutch assembly, crank cases &cover, cylinder head cover, differential cases, discs &rotors, distributor case, engine brackets, exhaust gas recirculating plate, exhaust system parts, flywheel assembly, front &rear cover, front end auxiliary drive brackets, fuel system parts, gear shift forks, intake manifold cover, lube oil filter head, main bearing caps, oil pump assembly, rocker arm, steering knuckles, thermostat housing, transmission support bracket assembly, turbo charger parts, valve cover, water &air connections and wheel hub assembly
Recent Developments
Corporate strategy Since 2000 Rico Auto has focused on becoming a global supplier of choice. It has built operational excellence, enhanced scale of operations and achieved cost competence while enhancing its engineering expertise to speed up development and launch time. Company has increased its customer list globally and shown significant reduction in cost and increase in productivity and profitability. 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. Rico has been selected as single source supplier of critical engine and transmission components and has begun supplies to Ford Europe, Ford North America, Land Rover and Jaguar. Next, it plans to establish presence in other low-cost countries by setting up manufacturing facilities in Thailand and China. The company is now aiming to achieve one billion dollar mark in sales by 2011. The company is considering acquisitions and alliances in this regard. The company is specifically eyeing more business from European and Japanese OEMs. To build new competencies in supplying components, Rico has been forming new joint-ventures with global suppliers. The company now has joint-ventures with FCC, Magna Powertrain, Continental and Jinfei Wheels of China. Joint-ventures In October 2007, Rico Auto formed a 50:50 joint venture in India with Magna Powertrain, to manufacture oil and water pumps for the Indian
Plants
India (3)
Sales
Employees
3,039 (31 March 2005)
254
and European markets, beginning early 2009. In June 2007, Rico entered into a 50:50 joint-venture with Continental to manufacture hydraulic brake systems. Under the joint-venture, the two companies will set up a plant in Gurgaon, which will be made operational in two phases, with the first phase being made operational by end 2008. The plant will have an annual capacity to produce one million units of brake actuation and two million units of brake calipers, 1.5 million units drum brakes and 500,000 units of load sensing proportioning valves. In May 2007, Rico Auto signed a joint-venture agreement with Zhejiang Jinfei Wheels Ltd. To manufacture aluminium alloy wheels for motorcycles. Rico has a 92.5% stake in the joint-venture and will start supplies in FY2010. Rico Autos 50-50 joint-venture with FCC Company Ltd (Japan) which manufactures clutch assemblies for two-wheelers and four-wheelers showed 52.6% growth in sales to INR2.29bn (40.53m, 31 March 2005) owing to single source supplies to Honda Motorcycles and Scooters India and Honda SIEL Cars. It also supplies clutch assemblies to Bajaj Auto and Hero Honda.
Investments In 2008, Rico invested in 25 acres industrial land near Chennai for a future facility. In 2005, additional land was acquired in Bangalore to serve the OEMs and Tier I suppliers in Southern India and international markets. Also in 2005, Rico Auto applied for a fresh allotment of land in Manesar (Haryana) to increase supplies to HMSI and Maruti Suzuki. In 2004, Rico Auto invested INR620m (11.58m, 31 March 2004) towards capital expenditure and capital work-in-progress. Capital expenditure including doubling of its ferrous and aluminium castings capacities and widening its product range and capabilities. For the purpose higher tonnage die-casting machines were installed. Divestments On April 2004, Rico Auto divested its non-core agro division solvent extraction unit for a consideration of INR79m (1.49m, 30 April 2004) to Adani Wilmer Ltd. Infrastructure Rico Auto employs over 1000 CNCs and SPMs in its facilities. Of the 40m components manufactured by Rico Auto more than 60% are assemblies. The company has 65 high pressure die-casting machines spanning a locking force of 135 tonnes to 1800 tonnes for Aluminium castings. The company has two disamatic vertical moulding lines with a casting capacity of over 40,000 tonnes. Rico Auto has two DISA and one SINTO moulding lines with 50,000 ton capacity. The company has 70 High Pressure Die-Casting machines with locking force in the range of 135-1800 tonnes. The company has added three horizontal moulding lines with a total casting capacity of 30,000 tonnes. The company manufactures most of its dies and patterns in-house. Rico Auto has a dedicated CAD/CAM/CAE/ FEA/ CFD team equipped with applications such as Unigraphics, ProE, Catia, C3P, Ideas, Vericut, Magmasoft, ANSYS, GT Suite and MSC Fatigue. The company has in-house R&D capabilities. Certification Ricos HPDC facility located in Dharuhera is ISO/TS 16949: 2002 certified. The foundry division in Gurgaon is accredited with ISO/TS 16949:2002 certification. Ricos second HPDC facility in Gurgaon is also ISO/TS 16949:2002 certified. FCC Rico has been granted ISO/TS 16949, OHSAS 18001 and ISO 14001 status.
255
The company has ISO 14001 and OHSAS 18001 certification. Rico has implemented SAP, Six Sigma and TPM initiatives across its facilities.
Contracts In the financial year 2005, Rico scaled up volumes derived from existing domestic OEMs Hero Honda, Maruti Suzuki, HMSI and Tata Cummins. FCC Rico has been awarded supply contracts by Suzuki Motorcycle India. In 2004, supplies of clutch assemblies to Hero Honda were 2.4m units. Volume of wheel hub and brake panel assemblies totalled 10m units. In 2004, Rico supplied 400,000 crank cases and 95,000 gear shift covers to Honda Motorcycles and Scooters India. In 2004, under the aluminium products a total of 500,000 oil pump assemblies and 60,000 cylinder head covers were supplied to Maruti. Under the ferrous product range 250,000 exhaust manifolds, 1.2m rotors & brake drums, 250,000 flywheels, 450,000 case differential housings and about 250,000 steering knuckles were supplied to Maruti. In 2004, Rico Auto supplied 200,000 lubricant oil filter heads to Cummins. In 2004, Rico exported 25,000 units of tunnel closure housing to Land Rover. In the same period it supplied a combined volume of 200,000 brackets to both Jaguar and Land Rover. In 2004, Delphi sourced 150,000 of exhaust manifolds from Ricos ferrous product range. In 2004, 110,000 balance shafts were supplied to Ford
Financial Overview Rico Group net sales for financial year ended 31 March 2008 were INR8.27bn (130.7m, 31 March 2008), falling 6.84% over INR8.88bn (153.4m, 31 March 2007) in 2007. Profit before tax recorded a growth of 19.8% to INR1012m (15.99m, 31 March 2008) in 2008 over INR947m (16.35m, 31 March 2007) profit before tax earned in 2007. Net Profit of INR222m (3.51m, 31 March 2008) in 2008, decreased by 13.6% to INR258m (4.46m, 31 March 2007) in 2007.
In the first nine months ended 31 December 2008, Rico Auto posted net sales of INR4.75bn (81.83m, 31 December 2008), a growth of 17% compared to INR4.06bn (69.8m, 31 September 2007) in the nine months ended 31 December 2007. Profit before tax for the period was reported at INR115.30m (1.99m, 31 December 2008), a decrease of 39.57% compared to INR192.80m (3.28m, 31 December 2007) in the previous year. Net profits declined by 33.3% to INR99.6m (1.72m, 31 December 2008) in 2008 over INR149.30m (2.56m, 31 December 2007) in the last financial year.
Outlook Rico Auto has had a strong growth period in the recent past, however, the last one year has been challenging due to the weakness in US Dollar and the increase in commodity prices. The company has a large exposure to ford and any further weakness in North American market will adversely affect Rico too. On the domestic front, the company has to face a slowdown in the Indian industry. However, even with a slowdown, the Indian market will manage better than other global markets and Rico stands to benefit from that.
256
Saint Gobain Group

Automotive Safety Glass
Address
Saint-Gobain Sekurit India Limited, T-94/95 MIDC, Bhosari Industrial Area, Pune 411 026, India
Saint-Gobain is the second largest supplier of automotive glass in India with a 13% market share. The company also has interests in high performance materials.
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. Saint Gobain, France wholly owns the company. Saint-Gobain Sekurit India Ltd: It supplies automotive glass from its two plants in Pune (Maharashtra). Atul Glass Group originally promoted the company with supplies to Tata Motors, Premier Automobiles, Hindustan Motors and Force Motors. In 1993, the company entered into a jointventure with Saint Gobain Vitrage SA, France. A greenfield facility was added at Pune in 1994. The company was later brought under Saint Gobain. Saint Gobain's customers include Ashok Leyland, Bajaj Auto, Eicher Motors, Fiat India, Force Motors, Ford India, Piaggio, Reva Electric Cars, Tata Motors and Toyota Kirloskar Motors.
Tel: +91 20 712 0047 Fax: +91 20 712 07770 Internet: http://www.saint-gobain.co.in Senior Officers
AY Mahajan, Chairman D Philibert, Managing Director Atul Gambhir, Head, Marketing
Products
Laminated and toughened automotive safety glass
Plants
Chennai (Tamil Nadu) , Pune (Maharashtra) (2)
Recent Developments
Corporate strategy In the recent years, the company has brought in capital from its parent to invest in capacity expansions in India. Its new plant based near Chennai has won business from Hyundai, Toyota and Mahindra-Renault. Going forward the company plans to grow its business in the country to ensure its capacity is utilized. Investments In February 2006, Saint-Gobain Glass India commenced operations at its new automotive glass facility in Sriperumbudur (Tamil Nadu, India). The new facility has an installed capacity of 1m car sets per annum. The company made an investment of INR14bn (266.2m, 28 February 2006) in the new plant. Contracts In December 2004, Saint-Gobain won a contract to supply Hyundai India. The company supplies windshields to the Toyota Corolla model from its Pune (Maharashtra, India) plant. Certifications Both facilities run by Saint Gobain Sekurit are QS 9000 certified.
Sales
INR670.1m (11.55m, 31 December 2007)
Employees
c. 320 (31 December 2007)
Financial Overview
In the financial year ended 31 December 2007, Saint- Gobain Sekurit registered sales worth INR670.09m (11.55m, 31 December 2007), a decrease of 4.13% compared to sales of INR698.97m (12.01m, 31 December 2006) in 2006. Operating profit was reported at INR76.3m (1.31m, 31 December 2007), increasing almost five fold compared to INR76.3m (1.31m, 31 December 2007) in 2007. Net loss decreased to INR1.12m (0.02m, 31 December 2007) from INR105.79m (1.82, 31 December 2006) in 2006.
257
Year 2007 2006 2005 2004 2003 Year 2007 2006 2005 2004 2003
Gross sales, INR m 670.09 698.97 833.78 732.81 577.86 Gross sales, m 11.55 12.01 15.63 12.30 10.13
Operating Profit, INR m 76.3 13.08 111.44 121.17 103.19 Operating Profit, m 1.31 0.22 2.09 2.03 1.81
Profit Before Tax, INR m -0.21 -49.69 50.64 63.43 31.5 Profit Before Tax, m 0.00 -0.85 0.95 1.06 0.55
Net Profit, INR m -1.12 -105.79 46.14 51.44 48.5 Net Profit, m -0.02 -1.82 0.87 0.86 0.85
Outlook
While the Indian automotive industry has grown substantially over the last five years, Saint Gobain has made little progress in the market share. The company has contracts for low volume models hence its volume of supplies. Baring the exception of Hyundai Motors which derives significant volumes for Saint Gobain in India, the company has remained a niche supplier.
258
Samkrg Pistons & Rings

Pistons, rings and pins
Address
Samkrg pistons and rings, 1-201, Divya Shakti Complex, 7-1-58, Ameerpet, Hyderabad - 500 016, Andhra Pradesh, 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.
Incorporated in 1985 in Andhra Pradesh by RJ Yata, SDM Rao and the Andhra Pradesh Industrial Development Corporation, Samkrg Pistons & Rings Limited (SPRL) is a leading supplier of pistons and piston rings to OEMs. The company produces pistons with a diameter range of 35mm to 120mm. The products of the company are well accepted in the domestic market as well as offshore markets. SPRL supplies 45% of its production to the OEMs. It supplies to the major domestic OEMs such as Bajaj Auto Limited, Birla Yamaha, Force Motors, Greaves, Hero Group, Honda Motorcycle & Scooters India, Honda Siel Power Products, Kinetic, Kirloskar Oil Engine, LML, Majestic Auto and TVS Motors. Samkrgs offshore clients include Piaggio-Italy, Mahle ACL Piston productsAustralia, Knorr Bremse- France, Toto Pistons- Japan, Tecumseh- Europe, Briggs & Straton- USA and Derbi Nacional Motor SA Spain.
Tel: +91 40 23732240 Fax: +91 40 23730216 Internet: http://

www.samkrgpistonsandrings.com
Senior Officers
SDM Rao, CMD S Karunakaran, Vice President S Kishore, Director- Operations
Recent Developments
Corporate Strategy In the recent years, the company has been exploring offshore opportunities in Australia, North America, Italy, Spain, Europe, Japan and South Korea. Exports constituted around 29% to the total revenues in FY08. The company is pushing for a 40:30:30 breakup of sales between domestic OE consumption, aftermarket and exports. Despite the recent slump in domestic demand, 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. Samkrg Pistons & Rings limited (SPRL) has been concentrating of high value added and import substitution products to ensure healthy margins. Joint-ventures In its initial days Samkrg had entered into a six year collaboration with Taiwan based piston manufacturing company, Cheng Shing Piston Company for technical expertise in production. Investments In fiscal 2004-05, Samkrg made investments worth INR188.5m (3.37m, 31 March 2005) for up gradation technical installations and for increasing capacity of pistons from 5m units to 6.5m units per annum and piston rings from 12m to 16m units per annum. This expansion was a part of an INR300m (5.31m, 31 March 2005) drive which requires the piston ring capacity to be pulled up further to 25m units per annum. The entire program shall be completed in 2006. Contracts Samkrg is a single source supplier to the TVS Victor program. Samkrg is also the sole supplier to LML, Kinetic and meets 60% of Bajaj Autos needs. 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. The company has also developed 15 Pistons model for trucks and tractors for US based Reliance. It has also commenced the supply of pistons and piston rings to Tecumshe-
Products
Pistons, Piston pins / Gudgeon Pins, Piston Rings & Circlips
Plants
Arinama Akkicalasa (1), Bonthapally (1), Pydibhimavaram (1) (all three in AP)
Sales
Employees
c. 1,000 (2008)
259
Europa for small four-stroke engines.
New Product Development During the current financial year, Samkrg is planning
to develop cooling gallery pistons for Diesel engines, ceramic coatings for pistons and rings, hard anodising facility for piston and rings. During 2007-08, Samkrg spent 2.30% of its sales on research and development. In 2007-08, Samrkg developed surface coating process of pistons for exports including molykote. Also in 2004-05, Samkrg developed new products for Honda Siel Power Products, HMSI and ring carrier pistons for diesel trucks and tractors for exports. SPRL has developed sophisticated piston assemblies to meet the requirements of complex emission norms of two-wheeler, four stroke scooters and motor cycles. 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, Bajaj Auto, Kinetic Motor Company, LML, Hero Group, Birla Yamaha, Kirloskar Oil Engines and Force Motors.
Financial Overview During the financial year ended 31 March 2008, Samkrg achieved a turnover of INR940.5m (14.86m, 31 March 2008), a growth of 12.87% compared to previous years result of INR883.21m (14.39m, 31 March 2007) in 2007. Exports grew by 25% from INR84.97m (1.59m, 31 March 2004) in 2004 to INR198.02m (3.50m, 31 March 2005) in 2005 there by accounting for a fourth of net sales. Profit Before Tax was at INR83.67m (1.32m, 31 March 2008) in 2008 compared to INR92.05m (1.59m, 31 March 2007) in 2007.
Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR m 940.49 833.21 775.67 799.30 671.83 Net sales, m 14.86 14.39 14.44 14.15 12.55 Operating profit, INR m 208.84 222.17 194.18 218.81 196.13 Operating profit, m 3.30 3.84 3.62 3.87 3.66 Profit before tax, INR m 83.67 92.05 80.81 108.06 93.92 Profit before tax, m 1.32 1.59 1.50 1.91 1.75 Net Profit, INR m 58.2 57.95 65.61 77.8 69.35 Net Profit, m 0.92 1.00 1.22 1.38 1.30
Outlook The impact of the slowdown has had lesser impact on two wheeler sales
thereby cushioning Samkrg from an otherwise turbulent scenario. However the availability of vehicle finance has been declining and is expected to impact sales across product segments.
260
Setco Automotive
Clutch and precision components
Address
Setco Automotive Ltd, 54-A, Tardeo Road, Nr. Film Centre, 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.
Setco Automotive was incorporated in 1982, as Gujarat Setco Clutch Ltd. In 1984, its Kalol (Gujarat) plant started production of clutches for the automotive industry. In 1992, the company started supplying clutches for light commercial vehicles and in 1996, the company started exporting components to UK and US to other clutch manufacturers. In 1999, Setco formed a technical alliance with Lipe Clutch Division of UK. During 2002, Setco initiated conversion of clutches from organic friction linings to ceramic friction linings in India with Tata Motors. In 2003, 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 employs 500 people at its two plants, Setco Automotive UK at Haslingden, north of Manchester (UK) and the second in Kalol, district of Panchmahal (Gujarat). Setco's domestic customers include Ashok Leyland, Eicher Motors, Mahindra & Mahindra and Tata Motors. Its international customers are Ace Mfg, Eaton, Haldex and Lipe. Setco exports to customers in Australia, Asia, North America, UK, China, Turkey and the Middle-East.
Tel: +91 22 2352 0092 Fax: +91 22 2352 0754 Internet: http://www.setcoclutch.com Senior Officers
Harish Sheth, Managing Director S Vakil, COO Sudhir Anand, Executive Director Udit Sheth, Manager, GM, International Business & Corporate Affairs KB Patel, Technical Director
Products
Clutch & precision components like machined castings, forgings, turned parts, and stampings
Recent Developments
Corporate strategy Setco is a manufacturer of clutches of all sizes, from passenger cars to commercial vehicles but has established its niche in the commercial vehicle sector. The company's competitive advantage lies in its inhouse design capabilities, customer service, and global quality systems. This has helped its sales grow eight times since 2000. In line with its strategy to aggressively enter the global markets, Setco acquired Lipe Clutch Division of Dana Corporation in 2005 and a Haldex unit in US in 2006. The company aims to expand its global business to 30 markets by 2010. In 2005, New Vernon Private Equity Ltd. acquired 14.17% stake in Setco. Setco plans to use the funds to widen its global footprint. Acquisitions In December 2006, Setco Automotive acquired US based manufacturing facility of Haldex through its subsidiary Setco Automotive N.A. Inc in Paris, Tennessee. The deal was structured as an asset purchase deal on an ongoing basis and was valued at INR216.19m (3.71m, 31 December 2006). In December 2005, Setco acquired Lipe Clutch Division from Dana Corporation, USA, through its wholly owned subsidiary, Setco Automotive (UK) Ltd. Divestments In December 2005, Setco sold 14.17% of fresh equity to New Vernon Private Equity Ltd. Joint ventures In February 2008, Setco Automotive commenced operations at its Haldwani, Uttarakhand based plant. The plant was setup under a joint-venture with FTE Germany. Investments
Plants
India (2), UK , USA
Sales
Employees
c. 550 (2008)
261
In 2007, Setco Automotive announced plans of setting up a greenfield manufacturing facility near Pune for the production of clutches and components. The plant is scheduled to start end 2008 at an investment of INR1.2bn (21.33m, 31 March 2007). Also in 2007, Setco Automotive announced a capacity expansion at its Gujarat based unit at an expense of INR250m (4.32m, 31 March 2007) in 2007. In 2006, Setco Automotive announced a capacity expansion at its Gujarat based unit at an expense of INR130m (2.42m, 31 March 2006) in 2006.
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. Setco is the sole supplier to the requirement of Eicher Motors. In 2005, Setco won a contract from Ashok Leyland to supply 330mm, 352mm and 380mm diameter clutches.
Financial Overview
In the twelve months period ended 31 March 2008, Setco recorded net sales of INR2.1bn (33.37m, 31 March 2008), compared to INR1.23bn (21.33m, 31 March 2007) during 2007. Similarly, on an annualised basis, its pre tax earnings for the period were INR205.4m (3.26m, 31 March 2008), compared to INR161.0m (2.78m, 31 March 2007) during the financial year 2007. Net profit amounted to INR135.8m (2.16m, 31 March 2008) for the period, compared to INR114.5m (1.98m, 31 March 2007) during 2007. Year Net sales, INR bn 2.10 1.23 0.67 Operating profit, INR m 228.60 100.40 Profit before tax, INR m 205.4 161.00 71.60 Profit before tax, EUR m 3.26 2.78 1.33 Net Profit, INR m
2008 2007 2006 * Year
135.8 114.50 24.10 Net Profit, EUR m
Operating Net profit, EUR m sales, EUR m 2008 33.37 2007 21.33 3.95 2006 * 12.42 1.87 * 9 month results ended 31 March 2006
2.16 1.98 0.45
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. The Lipe acquisition will be leveraged to expand its operations to over 30 countries by 2010. Lipe brings its internationally known brand along with design, technology and quality. Produced at low cost in India, Setco products are capable of a sustainable global presence.
262
Sigma Freudenberg NOK

Engine, transmission and suspension seals
Address
Sigma Freudenberg NOK Pvt. Ltd. B-70, Industrial Area Sector - 73, Phase-VII Mohali, Punjab - 160 055
Sigma Freudenberg NOK (SFN) is a joint-venture between Sigma Group and Freudenberg NOK. Its supplies around 60% of its sales to the automotive industry.
SFN was incorporated in 2001 to supply automotive and industrial seals to Suzuki and other OEMs supported by Freudenberg NOK globally. Sigma and Freudenberg hold 50% equity each in SFN. SFN manufactures over 170 types of seals and other rubber, rubber metal bonded components. The company also imports smaller volumes of seals from various SFN plants globally. In 2008, the company generated 60% of its revenues from automotive sales. SFN had an installed capacity to manufacture 7m seals per month in 2008. SFNs customers include Mahindra, Suzuki Powertrain, Maruti Suzuki, Daimler, Munjal Showa, Endurance, Gabriel, Fiat and Tata.
Tel: +91 172 5093 874, 2237 770-72 Fax: +91 172 509 3876 Internet: http://www.sfnindia.com Senior Officers
Kabir Singh, President RK Sud, Executive Director
Products
Seals, rubber and rubber metal bonded parts
Recent Developments
Corporate strategy A recent entrant in the India market, SFN started operations by supplying to programs where Freudenberg NOK had prior global association. Previously these seals were imported from Freudenberg NOKs international supply network. Despite the short period of its presence in India, the company has cornered 75% market share for suspension seals radial shaft seals, boots and dampers. Besides import substitution, 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. The company has set a target of achieving sales of INR2bn (31.6m, 31 March 2008) by 2009. To achieve this, SFN is concentrating on two markets, seals for two-wheelers and vehicle engine and transmission applications. The company plans to setup a second plant as the existing facility is close to reaching its 100% capacity. Contracts SFN was awarded a single source contract to supply 10 types of engine and transmission seals for the Tata Nano project. The project is expected to generate revenues worth INR 250m for the company annually.
Plants
Punjab
Sales
Employees
c. 200 (31 March 2008)
Financial Overview
In the financial year ended 31 March, 2008, SFN generated estimated sales of INR1.5bn (23.7m, 31 March 2008)
Outlook
Despite SFNs late entry in India, the company has achieved significant market share in suspension and transmission seals segments. The addition of Tata Nanos supply will help the company in broadening its supply capabilities by adding engine seals with much larger volumes.
263
Sigma Vibracoustic
Engine and transmission mountings
Address
Sigma Vibracoustic India Limited, A-30 , Industrial Area , Phase VII , Mohali, Punjab, India, 160 055
Sigma Vibracoustic (SVIL) is a joint-venture between Sigma Group and Freudenberg NOK. The company operates from two plants based in north India.
SVIL was incorporated in 2001 as a joint-venture between Sigma Group and Pheonix. Currently, Sigma and Freudenberg hold 50% equity each in the company. SVIL manufactures mountings and bushings for OEMs in India and Europe. In 2008, the company generated 80% of its revenues from exports. Its customers include BMW, Mahindra, Maruti Suzuki, Ford, GM, Daimler, Tata Motors and Volkswagen.
Tel: +91 172 223 6311-13 Fax: +91 172-5090 694/ 2236 316 Internet: http://www.munjalauto.com Senior Officers
Pradeep Randhawa, Executive Director Sushil Gupta, Head, Operations
Recent Developments
Corporate strategy In recent years, SVIL has largely focused on supplying the European vehicle programs to support Vibracoustic. The company has developed close relationship with Tata Motors. SVIL develops and supplies mountings for most Tata programs. This includes the Tata Nano program which will significantly increase SVILs revenues from Indian OEMs. By associating itself with production programs at an early stage, the company plans to gain greater penetration into local production programs. SVIL has set a target of achieving sales of INR1bn (15.8m, 31 March 2008) by 2009. Contracts SVIL is the sole supplier of engine mountings and bushings for the Tata Nano program. SVIL is the sole supplier of engine mountings and bushings to the Tata Indica, Indica Vista, Indigo, Indigo CS, Marina, Sumo Grande, Safari Dicor programs.
Products
Engine and transmission mountings, bushes
Plants
Punjab (2)
Sales
INR850m (13.43m, 31 March 2008) (Year to 31.12.08)
Employees
c. 200 (31 March 2008)
New Product Development In 2006-07, SVIL developed engine mountings for

the Tata Nano and Indica Vista programs.
Financial Overview
In the financial year ended 31 March, 2008, SVIL generated estimated sales of INR 850m ( 13.43m, 31 March 2008).
Outlook
SVILs prospects are promising with the entry of Volkswagen and the scheduled production of Tata Nano in 2009. Going forward, a mix of domestic and traditional customers will balance SVIL sales and derisk its operations.
264
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. The company is a leader in the Indian bearing industry and it caters to the automotive, electrical and industrial sectors. The automotive industry accounts for more than a third of its sales.
SKF started its operations in India in 1933. Over the years, the company has consolidated its various operations into SKF India. The company's main products are roller bearings and seals. SKF India's sister concern CR Seals India (Pvt) Ltd. provides sealing solutions. SKF India operates through five engineering platforms, bearings/units, seals, mechatronics, services and lubrication systems. At present, the company derives most of its revenues from bearing sales increasingly the company plans to derive significant sales from other platforms. SKF India has an installed capacity of 71 million ball and roller bearings per annum. Additionally, the company supplies wheel hub bearing units, taper roller bearings, seals, special automotive products and complete repair kits for the vehicle service market. In 2005, SKF Bearings India Ltd was renamed SKF India Ltd. The company supplies to all major automotive manufacturers in India.
Tel: +91 022 56337777 Fax: +91 022 22818678 Internet: http://www.skfindia.com Senior Officers
KC Mehra, Chairman Rakesh Makhija, Managing Director Sune Axelsson, Finance Director Hemant Nighojkar, Head, Automotive Business Unit & Pune Plant
Products
Bearings, housing/sleeves & accessories, linear motion products, seals, special steel, spherical plain bearings
Recent Developments
Corporate strategy Buoyed by the growth in vehicle sales in India, SKF has managed to triple its total sales in the country. In 2007, Tata Motors and Ashok Leyland accounted for a majority of the companys business from commercial vehicle customers while Maruti, Tata and Hyundai accounted for the mass of sales to the passenger car OE segment. SKFs wide acceptance by OEMs has lead to the its formidable presence. To match the growth in demand, SKF has scaled up its existing plants in Bangalore and Pune and announced two new manufacturing facilities. However, lower sales have forced SKF to defer the opening of its Haridwar facility to 2010. Acquisitions In 2005, SKF India acquired Vibration Engineers and Consultants Pvt Ltd (VEC). VEC specializes in vibration and dynamics analysis. Investments In April 2007, SKF India announced an investment of INR1.5bn (27m, 30 April 2007) to establish a greenfield ball bearing plant in Haridwar in the north of the country. The plant will begin operations in 2010. Also in 2007, SKF announced an investment of INR3bn (53.49m, 30 April 2007) to set up a new plant at Ahmadabad in Gujarat. In November 2004, SKF India opened a research and development centre in Bangalore (Karnataka). Contracts SKF India supplies McPherson strut bearing units for the Honda City and the Maruti Swift models. The company has recently bagged an order from Piaggio, Europe and Honda Indonesia for the supply of solid oil ball cage bearings. Certifications Both plants of SKF India are accredited with QS 9000 and ISO 14001 certificates.
Plants
Pune (Maharashtra), Bangalore (Karnataka)
Sales
INR15.68bn (270.22m, 31 December 2007)
Employees
c. 2,150 (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,
265
product and system design, advanced calculation and simulation, manufacturing of prototypes, testing and validation. The centre will also carry out complex simulation exercises of their products. SKF India has developed a range of belt-tensioners. In January 2006, SKF India announced the launch of "SKF Grease" for the automotive aftermarket in India. In February 2005, SKF India introduced sealing solutions for the automotive aftermarket. In January 2005, SKF India introduced "ENDURO" bearings, targeted at twowheeler racing enthusiasts. The bearing is capable of enduring high speed, dirt, extreme heat and humidity conditions. In 2003, SKF India launched a new wheel-bearing kit for the Maruti 800 model. In order to further increase it presence in the passenger car segment, it plans to introduce similar kits for other cars.
Financial Overview
In the financial year ended 31 December 2007, SKF India reported 16.82% increase in net sales to INR15.68bn (270.22m, 31 December 2007) as compared to INR13.42bn (230.64m, 31 December 2006) in 2006. Both automotive segment and industrial segment contributed in the better performance of the company. The company's pre-tax profit recorded an increase of 64.41% to INR2.47bn (42.62m, 31 December 2007) over INR1.50bn (25.85m, 31 December 2006) in 2006. Net profit improved by 57.62% to INR1.61bn (27.69m, 31 December 2007) as against INR1.02bn (17.52m, 31 December 2006) in 2006. Year Net sales, INR m 15,683.00 13,424.90 7,813.90 5,813.10 4,652.40 Net sales, m 270.22 230.64 146.51 97.54 81.56 Operating profit, INR bn 2,652.40 1,747.90 1,283.20 1,128.30 820.90 Operating profit, m 45.70 30.03 24.06 18.93 14.39 Profit before tax, INR m 2,473.60 1,504.50 1,071.30 863.30 506.30 Profit before tax, m 42.62 25.85 20.09 14.49 8.88 Net Profit, INR m 1,607.10 1,019.60 640.70 566.10 322.00 Net Profit, m
2007 2006 2005 2004 2003 Year
2007 2006 2005 2004 2003
27.69 17.52 12.01 9.50 5.64
Outlook
The relocation of Tatas Nano plant to Gujarat has opened significant opportunities for SKF as volumes for the ultra low cost car will be significant. However, overall vehicle sales declined in 2008 forcing SKF to defer the commissioning of a new facility to 2010. Going forward, the company expects its margins to be affected by pricing pressures in 2008 and sales drop in 2009.
266
SKH Metal
Sheet metal components and assemblies
Address
SKH Metals Limited, Plot 2, Maruti Joint Venture Complex Gurgaon-122015 Haryana, India
SKH Metal is the most crucial of all component suppliers in the Maruti vendor park. Maruti directly accounts for 45% of SKH Metalss business while Indirectly it accounts for another 25% of its business, which brings the total to 70%.
SKH Metals was formed from the buyout of Mark Auto, by Krishna Maruti Group in 2005. Krishna Maruti holds a 50% stake in the company while most of the rest is held by Maruti. SKH Metals industries client list comprises of Arvin Exhaust India, Caparo Maruti, Bharat Seats, Delphi Automotive Systems, Eicher Tractors, Electrolux, Fiat India, General Motors India, International Tractors, Jay Bharat Maruti, JCB, Krishna Boysan, Lombardini India, Mark Exhaust Systems, Sona Steering, Krishna Maruti and Walker Exhaust India. SKH Metalss international client list consists of AMA spa, Gildorni, Hatz Germany, JCB UK, Lombardini spa, O.M.R. srl, SAME srl and Yanmar Cagiva.
Tel: +91 124 5017612-621 Fax: +91 124 2341317 Internet: http://www.skhmetals.com Senior Officers
Ashok Kapur, Chairman &Managing Director
Products
Axle housing, aluminised tubes, engine mounting, exhaust systems, fuel tanks, muffler guard, muffler with guard, sheet metal components, silencer front catalytic assembly suspension frames and under body components.
Recent Developments
Corporate Following the acquisition of Mark Auto by Krishna Maruti Group, SKH Metals has made significant additions to its business prospects. The company has added exhaust systems as a full-fledged product along with injection moulded components. Earlier, the company used to supply exhaust systems and allied components as a Tier 2 to Mark Auto. SKH Metals strategy for growth is underpinned by key strategic alliances. The company hopes to secure access to both technology and business with a follow through source model. To this end, the companys 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. The company is now eyeing joint ventures for chassis systems, sheet metal components and injection moulded components. In 2007, SKH derived 70% of its revenues from sales made to Maruti Suzuki. As part of Maruti's cost-cutting strategy, dies used for various components of new models are made in India. Earlier, tool cost was amortized over a certain volume or was borne by the OEM. Cost-cutting exercise has also helped in bringing active involvement of the company in designing dies and components, an area which, till recently, was kept closed for most vendors. To this end, SKH Metals has also initiated talks for an alliance with tooling design and manufacturing firms. The companys earlier core business of fuel tanks has now expanded to include sheet metal components on a relatively larger base. Joint-ventures In February 2008, SKH Metals signed two joint venture agreement with Magneti Marelli,, Italy for exhaust systems. The agreements were signed between Magneti Marelli and SKH Metals and SKH Sheet Metal Components. 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 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 also has a technical alliance with Okamoto Kogyo Press Ltd for fuel tanks. SKH Metals has a financial arrangement with Kusakabe Electrical & Mechanical Co, Japan for stainless steel tubes. Kusakabe Electrical holds 40% stake in the company.
Plants
Gurgaon (2)
Sales
INR 2.25bn (35.55m, 31 March 2008)
Employees
c. 600 (2008)
267
The company also shares an alliance with Futaba, Japan for suspension frames.
Contracts With the exception of the Maruti Omni, SKH Metals is the sole supplier of its components range for every Maruti model. The company also supplies various stampings to other Maruti vendors, which include Krishna Maruti, Caparo Maruti and Jay Bharat Maruti. SKH Metals also supplies tubes to Mark exhaust systems.
Financial Overview In the financial year ending 31 March 2008, SKH Metals
Industries estimated sales were INR 2.25bn (35.55m, 31 March 2008). Being a privately-held company, SKH Metals does not publish detailed financials.
Outlook Following the change in management, SKH Metals has significantly remodeled its business model by adding new products and introducing strategic partnerships in its core product areas. The company should secure assured business from Maruti, Suzuki and Tata once the new facilities are commissioned. 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.
268
Spectra Group
Valvetrain components
Address
Spectra Products Pvt Ltd 79, Anupam Apartments, Mehrauli Badarpur Road, New Delhi 110 068 India
Spectra Group is a leading supplier of valvetrain components to commercial vehicle and diesel engine manufacturers.
Spectra Group consists of four privately held companies which manufacture various valvetrain components. The four companies include Ghaziabad Precision Products, Perfect Springs, Precision Engineering Works and Spectra Products. In 2008, Spectra Products derived 50% of its sales from exports. The groups domestic clients include Tata Motors, Ashok Leyland, Kirloskar Oil Engines, Eicher, International Tractors, TMTL, Escorts, Lombardini India, Swaraj Mazda. The group supplies internationally to Perkins (UK), Case New Holland (UK), Caterpillar (US), Deutz (Germany) and Nissan(Japan).
Tel: +91 120 270 1261, 286 6418 Fax: +91 11 2953 6784, 120 275 5023 Internet: http://www.specpro.com Senior Officers
IC Agarwal, Managing Director Sharad Aggarwal, Head, marketing
Recent Developments
Corporate strategy In recent years, Spectra Products reached acquired market leadership for push-rods in India. The company has achieved preferred supplier status with Caterpillar in USA and is a sole supplier to multiple programs. As part of its growth strategy, Spectra is exploring strategic tie-ups to gain access to technology and new product segments. In revenue terms, the company targets sales worth INR3bn (47.4m, 31 March 2008) by 2013 and aims to achieve 40-50% of valve train supply requirement of Ashok Leyland, Piaggio and Mahindra International. Joint-ventures In June 2008, 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.
Products
Compression springs, garter springs, piston ring springs, push rods, rocker assemblies, shafts, springs
Plants
Uttar Pradesh (4)
Sales
INR 500m (7.90m, 31 March 2008) (Year to 31.12.08)
Financial Overview
In the financial year ended 31 March, 2008, Spectra Group generated estimated sales of INR 500m (7.90m, 31 March 2008).
Employees
c. 400 (2008)
Outlook
Spectra Group has a considerable dependence on exports. With the slowdown in international markets, the company will face challenges in achieving its targets. In the long run, the company is well positioned from sustained outsourcing of powertrain components from low cost locations.
269
Sona Koyo Steering Systems

Steering systems and driveline products
Address
Sona Koyo Steering Systems Ltd, 8th Floor, DLF Square, Jacaranda Marg, M Block, DLF City Phase II, Gurgaon 122002 Haryana
Sona group is the largest manufacturer of steering systems in India with a 50% market share. The company's product range also extends to rear axle assemblies and propeller shafts.
The Group is a leading manufacturer of hydraulic power steering systems, manual rack and pinion steering systems, collapsible, tilt and rigid steering columns for passenger vans and MUVs. Sona Koyo Steering Systems Ltd (SKSSL) is the group flagship which generates half the group sales. It is a joint-venture between JTEKT, Maruti Udyog and Dr. Surinder Kapur. Promoter owns 46.8% of the company equity including Maruti's 7.85%, JTEKT's 20.47% and rest of stake owned by Dr. Surinder Kapur and persons acting in concert with him. Sona Koyo has a 58% share of Maruti's steering business and generates 50% of its sales from it. Besides its flagship company, Sona Koyo, 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, passenger car and SUV axle assemblies for the Indian market. Arjan Stampings: is joint venture between Sona Koyo Steering Systems Limited and Arjan Auto Pvt. Ltd. ASL primarily caters to Sona Koyos requirements for export of stamped parts to associates such as FAF, JTEKT and certain requirements for domestic market. Sona Fuji Kiko Automotive: 51: 49 joint venture between Sona Koyo Steering Systems and Fuji Kiko for manufacturing C-EPS Steering columns. Sona Fuji Kiko Automotive supplies to group companies JTEKT Sona Automotive and global customers of JTEKT Corporation of Japan including Nissan and Toyota.
Tel: +91 124 5104641 Fax: +91 124 5104645 Internet: http://www.sonagroup.com Senior Officers
Dr. Surinder Kapur, CMD Kiran Deshmukh, DMD Atanyu Maitya, Vice-President JV Prabhu, MD, Mahindra Sona PK Virmani, MD, Sona Cold Forgings TK Pal, MD, Sona Okegawa Ghanshyam Dass, MD,Sona Somic Lemforder
Products
Sona Koyo: Case differential assemblies, propeller shafts, rack and pinion manual steering, rack and pinion power steering, rear axle assemblies, re-circulating ball screw type gear assemblies, column assembly rigid, column assembly collapsible, column assemble collapsible tilting, universal joints
Sona Group also has interest in other companies such as: Sona Somic Lemforder Components (SSLC): Setup in 1995, SSLC is a leading manufacturer of ball joints for steering systems and suspension components. The company is a three-way joint-venture between Sona group, Somic Ishikawa, Japan, and ZF Lemforder, with a facility in Gurgaon (Haryana). SSLC has an installed capacity of three million ball joints per annum. The major clients of the company are SKSSL, Maruti, M&M, Tata Motors and Toyota. Sona Cold Forgings (SCFL): SCFL was established in 1996 as a manufacturer of cold forged components used in gear box, engine, drivetrain, steering systems, electrical systems, seat belt mechanisms, carden joints, spiders for steering, drive shafts, inner and outer parts of constant velocity joints, bevel gears, valve tappets, pinions, fuel-injection systems and many other mechanical applications. SCFL has an installed capacity of 900 tons per annum. The company's major customers include Sona Koyo and Sona Somic and have developed components for TVS and Denso. Sona Okegawa Precision Forging Limited (SOPL): This subsidiary manufactures differential bevel gears for customers including Tata Motors, Mahindra & Mahindra, Eicher Tractors, Punjab Tractors, Sona Koyo and Mitsubishi Materials Corporation (Japan). Mahindra Sona (MSL): The
Plants
SKSSL: Tamil Nadu (1), Haryana (2) SOPL: Haryana MSL: Maharashtra SSL: Haryana
Sales
INR 6.9bn (101.24m, 31 March 2009)
Employees
SKSSL: c.650 (2008)
270
company makes propeller shafts, axles and clutch assemblies for domestic and export markets from its plant in Nashik (Maharashtra). Sona e-design: is the IT arm of the Sona group.
Sona Group customers include Brakes India, Denso India, Eicher tractors, GM, Hindustan Motors, Hyundai Motors, Keihin Panalfa, Koyo Steering Thailand, Mahindra & Mahindra, Maruti Udyog, Maval Manufacturing, Mitsubishi, Punjab Tractors, San Motors, Sona Somic Lemforder, Swaraj Mazda Tata Motors, Toyota Kirloskar Motors and international clients such as Koyo Steering USA, Mando Korea, among others.
Recent Developments
Corporate strategy As a market leader in steering systems in India, Sona Koyo is now adopting a two product strategy by promoting driveline products in its portfolio. In 2009-09, 87% of the companys sales were attributed to steering systems and the balance were attributed to driveline products. The initiation of a joint venture with AAM was a critical step in this regard. While Sona Koyo posted lower than anticipated growth in its exports business compared to its previously stated 2010 target, it has re-oriented its export strategy to match the change in the global economic scenario. Sona Koyo serves three key export markets USA through Sona Autocomp USA and Europe & Latin America through Fuji Autotech. The company relies on integrating its production capabilities with supply chain requirements of JTEKT and Fuji Kiko. This includes supplies of tier-II parts and sub-assemblies. The company is also promoting its indigenously developed products for off-highway and commercial vehicle markets in North America and Europe. In the domestic market, Sona Koyo is expected to benefit from the Tata Nano production program. The shifting of Nanos production site from Singur to Sanand lead to intermediate losses as Tata Motors is expected to compensate the company. The initiating of Nanos 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. Acquisitions In October 2004, Sona Koyo acquired 21% stake in Fuji Autotech France for INR285m (4.93m, 31 October 2004). Fuji Autotech was earlier acquired by Fuji Kiko, an associate venture of JTEKT. The acquisition is a part of SKSSL's global expansion plans. Fuji Autotech is the fourth largest steering column manufacturer in Europe with a capacity of 2.5 million steering columns and a 16% market share in the steering column market. SKSSL has the option of increasing its stake to 30% in three years time. Fuji Autotech posted sales worth 75m in the financial year ended 31 March 2004 and employs 360 people. Joint-Ventures In 2007, 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. The company supplies to group companies JTEKT Sona Automotive and global customers of JTEKT Corporation of Japan including Nissan and Toyota. The company will commence production in November 2009. 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 commenced operations in 2008 and is expected to reach optimum capacity unitization levels by March 2010. In October 2007, Sona Koyo announced a a 50:50 joint venture with American Axle & Manufacturing for manufacturing light truck, passenger car and SUV axle assemblies for the Indian market. AAM Sona Axle will commence supplies of rear axles for Tata Motors light commercial vehicles in 2009.
271
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. SKSSL has a technical and financial joint-venture with JTEKT (Japan), which holds 20.5% equity in the company. SKSSL also has a technical collaboration with Mando Machinery Corporation (Korea). Mahindra Sona is a joint-venture with Mahindra & Mahindra. Sona Group entered into the partnership in 1996, which was earlier a Mahindra & Mahindra company. Sona Ogekawa has a technical and financial joint-venture with Mitsubishi Materials. Mitsubishi Materials holds 30% equity in the company. Sona Somic Lemforder has a technical and financial joint venture with Somic Ishikawa (Japan) and ZF Lemforder (Germany). Somic Ishikawa holds 40% equity in the company while ZF Lemforder holds 26% equity in SSL, the balance is held by Sona Group. Sona Cold Forgings has a financial joint-venture with Somic Ishikawa (Japan) and ZF Lemforder (Germany). ZF Lemforder holds 34% equity in the company while Somic Ishikawa holds 26%, the balance is held by Sona.
Investments In 2005, Sona Koyo announced an investment of INR870m (15.4m, 31 March 2005) to increase manual steering gear capacity to over 1.05 million units per annum and power steering capacity to 0.3 million units.
Contracts Tata Nano Maruti Suzuki Swift Maruti Suzuki SX4 Mahindra Logan Mahindra Xylo In 2005, SKSSL commenced supplies of manual steering gears to Mando USA. In 2003, SKSSL won a five-year contract worth US$35m (27.88m, 31 December 2003) from Koyo for supplies of 5% of its US plant business. In the same year, the company won another five-year contract worth US$10m (7.97m, 31 December 2003) from a European racing car manufacturer, a Korean company and a US-based tractor manufacturer. SKSSL supplies rack and pinion steering systems and columns for all Maruti models except the Swift model. The company supplies hydraulic power steering for the Maruti Esteem and rear axles and propeller shafts for the Maruti Omni. The group supplies recirculating ball steering systems for the Omni and Gypsy. The company also accounts for fifty-percent of the case differential assemblies for the Alto. In the case differential business, Sona Koyo has a share of 65-70% in Maruti. Sona Koyo is providing the case assembly for the Maruti Swift. The company developed and supplies hydraulic power steering and column assembly to the Mahindra Scorpio and Bolero models. The company is the supplier of recirculating ball steering and column assembly for the General Motors Chevrolet Tavera model. Sona Koyo supplies the hydraulic power steering system and column for the Hindustan Motor's Mitsubishi Lancer. The company is the single source supplier of case differentials to Tata Motors for all its models. Sona Koyo supplies recirculating ball steering to Swaraj Mazda and Eicher Motors.
Certifications
In 2004, SKSSL was awarded the Deming Prize in recognition of its quality practices. The company is accredited with ISO 9001 and QS 9000 certifications.
272
Mahindra Sona is accredited with ISO 9001 and QS 9000 status. Sona Cold Forging is accredited with TS 16949 status. Sona Okegawa Precision Forgings is accredited with ISO 9002 and QS 9000 certifications. Sona Somic Lemforder is accredited with ISO 9002 and QS 9000 status.
Financial Overview
During fiscal 2009 (year ended 31 March 2009), Sona Steering posted net sales of INR6,919.9m (101.24m, 31 March 2009), an increase of 1.2%, when compared to net sales of INR6,836.8m (108.57m, 31 March 2008) in fiscal 2008. The company reported an operating loss of INR135.5m (1.98m, 31 March 2009) in 2009 as against an operating profit of INR443.4m (7.04m, 31 March 2008) in 2008. In fiscal 2009, Sona Steering declared loss before tax of INR460.9m (6.74m, 31 March 2009) as compared to profit before tax figure of INR390.3m (6.2m, 31 March 2008) in the previous year. The net loss reported by the company stood at INR316.0m (4.62m, 31 March 2009) in 2009, registering a decrease of 226.9% as against a net profit figure of INR248.9m (3.95m, 31 March 2008) in fiscal 2008.
Year 2009 2008 2007 2006 2005 Year 2009 2008 2007 2006 2005
Gross sales, INR m 6919.95 6836.8 7041.6 4092.5 3629.4 Gross sales, m 101.24 108.57 121.61 76.20 64.24
Operating profit, INR m -135.48 443.4 622.1 411.3 371.1 Operating profit, m -1.98 7.04 10.74 7.66 6.57
Profit before tax, INR m -460.94 390.3 410.9 253.4 253.3 Profit before tax, m -6.74 6.20 7.10 4.72 4.48
Net Profit, INR m -316 248.9 277.1 162.6 166.7 Net Profit, m -4.62 3.95 4.79 3.03 2.95
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. 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. While global demand for Sona Koyos products is expected to remain stable, domestic sales would improve with a healthy 6-8% top line increase. The company is expected to return to profitability with rapid localisation of imported aggregates and other cost-cutting measures adopted by the company. The company will also commission three new facilities in 2009 catering to both domestic and export markets.
273
274
Steel Strips Wheels

Steel wheel rims
Address
Steel Strips Wheels Village Somalheri/ Lehli PO Dappar, 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. It supplies rims in the range of 10 to 30 inches diameter for scooters, passenger cars, utility vehicles and tractors.
SSW was established in 1985 and in 1997 signed collaboration with Kannai Motor Wheel Company, a part of the Sumitomo Group, for technology assistance and efficiency enhancement. 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%. SSW supplies to Fiat India, General Motors India, Honda Motorcycles and Scooters India, Honda Siel Cars, Mahindra & Mahindra, Maruti Udyog and Tata Motors. The company exports to Kromag (Austria), Inbud (Poland), Ford (Turkey) and Peugeot (France). It plans to export 800,000 wheel rims in 2006.
Tel: + 91 11 2687 8168 - 70 Fax: + 91 11 2687 8166 Internet: http://www.sswlindia.com Senior Officers
RK Garg, Chairman Dheeraj Garg, Managing Director
Products
Steel wheel rims
Recent Developments
Corporate strategy SSWs relationship with Maruti Suzuki has paid off as the company continues to enjoy healthy order books from the OEM. At the same time however, SSWs dependence on MSL makes it vulnerable to the product life cycle declines of Marutis vehicles. At present Maruti accounts for 51% of the companys sales followed by Tata Motors which accounts for 22%, Mahindra and Honda which account for &% and 5% of sales respectively. The balance comes from sales to Honda Scooters (10% of sales), tractors (3%) and the aftermarket. Further, the company is successful in exports which have reached feasible volumes to warrant establishing a plant closer to the market. This move will help reduce transportation costs. For this purpose, SSW is setting up a production unit in Slovakia. SSW is exploring possibilities of supplying its products to Europe, Australia and South Africa by the end of 2008. The company has set up a target of exporting 700,000 wheel rims for cars and MUVs in 2008. Joint-ventures Steel Strips Wheels has a technical collaboration with Ring Tech, Japan for automotive wheel rims. Since 1997, the company has collaboration with Kannai Motor Wheel Company for technical assistance. Investments In April 2006, SSW announced investment of INR1.48m (26.20m, 31 March 2005) made to expand production capacity of its plant at Lalru, Chandigarh (India). The investment increased its capacity from 2.4m to 7.5m wheel rims per year. The company has established a 2m wheel rims per annum production base in Slovakia through a subsidiary. The capacity will be later expanded to 5m rims per annum. The European unit will help offset haulage charges the company incurs on exports. Contracts In 2005, Steel Strip Wheels began supply of wheels for Maruti Suzuki Swift. The company has won the single source supply contract for the Honda Civic model. GM India has listed the company as the single source supplier to its T-200 program.
Plants
Punjab (1)
Sales
Employees
c. 450 (2008)
275
In June 2005, Steel Strip Wheels commenced trailer wheel supplies to JUST, Germany. In 2005, Steel Strip Wheels commenced car wheel supplies to Inbud Faro, Poland.
New Product Development Steel Strip Wheels has developed a new wheel for
the three wheeler segment and is expecting a volume of 0.2m units in the first year of production. The wheels have been improved by a significant reduction in weight helping to increase vehicle performance and reduce overall cost of production. Certifications The company has been accredited with ISO/TS 16949:2002 and ISO 14001:1996 status. The company has also been accredited with ISO 9002 and QS 9000.
Financial Overview In the financial year ended 31 March 2008, Steel Strip
Wheels generated sales worth INR 2.6bn (41.31m, 31 March 2008), an increase of 31.04% compared to INR 1,985.2m ( 34.28m, 31 March 2007) in 2007. Profit before tax grew 15.82% to INR 230.6m (3.66m, 31 March 2008) from INR199.1m (3.44m, 31 March 2007) in 2007. Net profit for the financial year 2008 increased to INR 164.7m (2.62m, 31 March 2008) compared to INR 140.3m (2.42m, 31 March 2007) in 2007. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR bn 2,601.50 1,985.20 1,573.93 1,452.69 829.46 Net sales, m 41.31 34.28 29.31 25.71 15.49 Operating Profit, INR m 496.2 399.4 281.19 263.85 180.82 Operating Profit, m 7.88 6.90 5.24 4.67 3.38 Profit Before Tax, INR m 230.6 199.1 108.77 146.7 84.06 Profit Before Tax, m 3.66 3.44 2.03 2.60 1.57 Net Profit, INR m 164.7 140.3 103.91 122.62 62.52 Net Profit, m 2.62 2.42 1.93 2.17 1.17
Outlook Strong growth in the passenger car and commercial vehicle production has triggered unprecedented capacity increase by SSW. 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, these units will find it difficult to produce at feasible capacity. On its part, SSW is well poised as it has steadily added capacity while retaining its share of business with existing OEMs. Further, the company has won prestigious export orders while improving its product through R&D.
276
Sterling Tools
Fasteners
Address
Sterling Tools Limited 5-A, DLF Industrial Estate Faridabad- 121 003 Haryana India
Sterling Tools is a leading supplier of engineered fasteners to OEMs and aftermarket in India. Company has three plants with a capacity of 600 million fasteners per annum.
Sterling Tools derives 28% of its sales from commercial vehicles, 20% from passenger cars and 14% from Tier-I suppliers. International sales account for 5% of total revenues for the company. Sterling Tools operates from three plants based in Faridabad (Haryana). The companys domestic customer comprise Arvin Meritor, Ashok Leyland, Autoliv IFB, Carraro India, Delphi Automotive Systems, Denso India, General Motors India, Hero Honda Motors, Honda Motorcycle & Scooter India, Maruti Udyog, Sona Koyo Steering Systems and Tata Motors. The company exports to Lemforder.
Tel: +91 129 2270 621/ 2270 622 Fax: +91 129 227 7359 Internet: http://www.stlfasteners.com Senior Officers
ML Aggrawal, Chairman Anil Aggarwal, Managing Director TN Thathachar, Vice President Uttam Gala, Senior Manager
Recent Developments
Corporate strategy Sterling Tools is scaling capacity to service increased demand following growth in vehicles sales in India. In light of the increasing input costs and competition, Sterling is increasing its focus on high value added engineered fasteners a segment where it can leverage its role as a full service supplier. To this end, Sterling has invested in new equipment and has reworked process flows. Sterling has revamped its product mix to counter the spike in input costs. While the company has focused on OEM supplies in India, it has been working on supplies to Tier-I customers in the international market. Sterling targets to generate 20% of its sales from international markets by 2010. The company expects the cold forged high tensile fastener demand in India to grow by 15% per annum from the present INR13bn (206.44m, 31 March 2008) and additional growth attributed to exports. Sterling Tools has widened its aftermarket presence to help offset margin pressures. Contracts Sterling Tools supplies chassis fasteners to the Maruti Suzuki Swift program. Sterling Tools supplies engine fasteners to the Maruti Suzuki Swift program. Sterling Tools supplies engine fasteners to the Tata Ace program. Certifications Sterling Fasteners has been accredited with ISO 14001 and ISO/TS 16949 certifications.
Products
Chassis fasteners: centre bolts, hub nuts, hub/wheel bolts, propeller shaft bolts/nuts, rivets, suspension bolts, track shoe bolts/nuts, two wheeler spindles/ wheel axles, wheel studs Engine fasteners: balance weight bolts, connecting rod bolts/ nuts, cylinder head bolts/ screws, fly wheel nuts/ bolts, main bearing cap bolts Standard fasteners: hexagon nuts, hexagonal head bolts, socket head cap screws, studs, weld nuts
Plants
Haryana (3)
Sales
Employees
485 (2008)
Financial Overview In the financial year ended 31 March 2008, Sterling Tools recorded sales of INR1.54bn (24.44m, 31 March 2008), decreasing by 5.52% compared to previous year's figures of INR 1.63bn (28.08m, 31 March 2007). Profit before tax in 2008 was INR 120.35m (1.91m, 31 March 2008), an increase of 11.14% compared to INR108.28m (1.87m, 31 March 2007). Net profit in 2008 improved by 10.44%, to INR 76.12m (1.21m, 31 March 2008) compared to INR 68.92m (1.19m, 31 March 2007) in 2007. Year Gross sales, INR bn
1.54 1.63 1.35 1.26 0.88

236.92 201.53 145.33 165.38 125.09

120.35 108.28 85.96 111.37 91.85
Net Profit, INR m

76.12 68.92 55.27 74.82 60.42
2008 2007 2006 2005 2004
277
Year
Gross sales, m
24.44 28.08 25.10 22.27 16.45
Operating profit, m
3.76 3.48 2.71 2.93 2.34

1.91 1.87 1.60 1.97 1.72
Net Profit, m
1.21 1.19 1.03 1.32 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. This will help increase its profit margins. An increased focus on international supplies will help Sterling Tools in adding a new revenue source while adding to the companys full service supplier prospects.
278
Subros
Air-conditioning systems
Address
Subros Limited, LGF World Trade Centre, Barakhamba Lane, New Delhi 110001 India
Subros is the largest manufacturer of automotive condensers in India with a market share of about 44%. The company has an integrated setup producing the complete HVAC unit in-house.
Subros was incorporated by the Suri Brothers and associates in 1985 for the production of automotive air-conditioning systems. Subsequently the company entered into a technical collaboration agreement with Nippondenso initiated by Suzuki (Japan) for its Maruti project in India. Assembly operations commenced in 1985 with a volume of 50,000 units per annum. During the next decade Subros embarked upon a program of sub-assembly procurement and localisation of components including in-house production of critical components. Currently Subros has a total installed capacity of 1m units per annum. Subros manufactures automotive air-conditioning systems including swash-plate type compressor, clutches and other associated components for cars and light commercial vehicles in addition to providing design, manufacturing, production services and training technical personnel of its OEM customers at its plants. Subros supplies air conditioning systems and components to Denso Kirloskar Industries, Force Motors, Hindustan Motors, Honda Siel Cars India, Maruti Udyog, Reva Electric Car Company and Tata Motors. In terms of revenues, Maruti Udyog and Tata Motors are Subros' largest customers.
Tel: + 91 11 2341 4946 Fax: + 91 11 2341 4945 Internet: http://www.subroslimited.com Senior Officers
Ramesh Suri, CMD DM Reddy, CEO Pawan Sabharwal, General Manager, Marketing & Service MK Puri, Associate Vice President
Products
Blower unit, compressor mounting bracket, compressors, condensers, cooling unit, evaporators, heater, hoses, HVAC unit and tubes
Recent Developments
Corporate strategy In recent years, Subros has strategically aligned itself with the second largest OEM in India, Tata Motors citing higher volumes that the OEM is expected to offer once the Tata Nano is launched commercially. The company now accounts for a majority in AC supplies to Tata. Furthermore, Subros has extended its supply footprint to Thailand where Tata is launching its pick-up, Tata Xenon. 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. On the other hand, Subros supply relations with Maruti have remained healthy as the company continues to supply most Maruti programs. In 2006, Subros lost a Maruti supply contract to rival Sanden Vikas for the first time since its inception. The company has since reworked its strategy and is keen to ensure that its dominance in Maruti the largest OEM in India remains intact. In the commercial vehicle segment, Subros garnered 40% market share in 2008. With HVAC fitment on the rise in the domestic vehicles, OEMs are willing to contract Subros to design and develop their systems. Subros has expanded its product design, development and validation facilities to win such business, particularly in case of Tata where the company initiated substantial development work at its own facilities. Joint-ventures Subros is a three-way joint-venture between Suri Brothers, Denso (Japan) and Suzuki (Japan). In an agreement signed in May 2000, Denso transferred technology for MF condensers and 1 OS series compressors to the company. Investments In August 2008, Subros announced an investment of INR1bn to establish an assembly facility for air-conditioning systems for Tata Motors in Thailand for the Tata Xenon. The facility will initially supply 5,000 systems for the program which will be later be scaled up to 15,000 units by 2011. In May 2004, Subros announced new units at Manesar (Haryana) and Chakan
Plants
Noida (3), Gurgaon, Manesar, Chakan
Sales
Employees
c. 1750 (2008)
279
(Maharashtra) at an investment estimated at INR1bn (18.04m, 31 May 2004). The total initial investment made in the Manesar facilities amounted to INR370m (6.7m, 31 May 2004). The plant in Manesar (Haryana) was completed in 2006 and serves Maruti Udyog. In 2004, Subros announced opening of a R&D centre in its existing Noida (Uttar Pradesh) plant at an investment of INR200m (3.7m, 31 March 2004). The installations, which include a wind tunnel and calorimeter, have helped the company curb prototype testing cost by 40-80%. The company has also allowed OEMs such as Tata Motors and GM to test their products in this facility.
Contracts Subros manufactures compressors for the Maruti Alto, Wagon R, Versa; condensers for Maruti Alto, SX4, Versa, Wagon R; evaporators for the Maruti Alto, Versa, Wagon R; blowers for Maruti Alto, Versa and Wagon R. The company also manufactures heaters, tubes and hoses for the Maruti Alto and the Wagon R. Besides, the company also manufactures various other components for other cars in the Maruti stable. The company was selected by Tata as the supplier of compressors for the Tata Safari and blowers, heaters, tubes and hoses for the Tata Indica. The company supplies various components for other cars and some trucks in the Tata stable. Subros supplies components for A/C system and heater unit for the Reva Electric car.
New Product Developments Subros is developing products such as sub-cooled

condensers, RS evaporator and Variable Displacement Compressor which will help reduce power consumption. In 2005, Subros implemented Product Lifecycle Management techniques for efficient utilization of R&D data. The company commissioned a virtual product development center with CAD, CAM, CAE and CFD capabilities. In 2008 Subros began suppies for the Tata Indica Vista. Subros is developing HVAC for a new MPV X2 on the Safari platform. Subros is working towards bringing second generation compressors to the domestic market. In 2008, the company commenced supply of condensers, compressors, hoses and tubes for Maruti A-Star. During 2005, Subros undertook design and development and launch of AC system for TMCC 10S11 compressor. During 2005, Subros initiated feasibility studies for Maruti model L. During the same year, Subros developed and launched an AC system for Safari 10S13 compressor. During 2005, Tata Motors approved the concept design of HVAC for proposed new modular truck. In 2005, Subros received a contract for HVAC system for Tata Indigo Marina. Also in 2005, Subros developed HVAC for Eicher Jumbo (HCV). Also in 2005, Subros supplied 25 kits of compressors, condensers, hoses and tubes to TATRA under the first phase of its development program. Also in 2005, Subros completed the design and development of AC components for the SAN Storm. During the fiscal 2005, Subros received a letter of intent from Ashok Leyland for the development of AC for G90 Cab. 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
280
Certifications Subros has been accredited with ISO 9002 and QS 9000 certifications.
Financial Overview
In the financial year ended 31 March 2008, Subros reported 2.36% increase in net sales to INR6.63bn (104.7m, 31 March 2008) as compared to INR6.47bn (111.8m, 31 March 2007) in 2007. Pre-tax profit increased by 2.65% in 2008 to INR410.8m (6.49m, 31 March 2008) from INR284.4m (4.91m, 31 March 2007) in last year. The company reported 2% increase in net profit at INR290.1m (4.58m, 31 March 2008) as against INR284.4m (4.91m, 31 March 2007) in 2007.
Year
Net sales, INR m 6,627.30 6,473.90 5,649.90 5,909.00 4,923.30 Gross sales, bn 104.71 111.80 105.20 104.59 91.97
2008 2007 2006 2005 2004 Year
2008 2007 2006 2005 2004
Outlook
Subros has continued to maintain its market leadership by aligning itself selectively to the top two OEMs, Maruti Udyog and Tata Motors. Both OEMs have embarked on their growth plans with Maruti establishing India as a small car hub and Tatas launch of the worlds first ultra low cost car. Interestingly, the company has also been nominated by Tata Motors to follow its supply to its new Thai program. Thai government is working on an Eco car project for which Tata Motors and Toyota are seen as key contenders. Toyota has a strong influence on the Thai market and the local establishment while Tatas Nano platform has received praise from local strategists. Tatas selection for the project would bring Subros into the lucrative Thai market and mark its entry into the ASEAN region.
281
Sunbeam Auto
Aluminium die-castings
Address
Sunbeam Auto Ltd, 38/6 K.M Stone, Delhi-Jaipur Highway, Narsingpur Gurgaon - 122 001, India
Sunbeam Auto, a part of the US$2.2bn Hero group, was formed as part of Hero Honda Motorcycles' vendor development strategy. Today the company is a large supplier of castings and pistons to the automotive industry.
Sunbeam Auto, formerly a unit of Highway Cycles Ltd, was established as an ancillary to Hero Honda Motorcycles in 1987 to develop import substitute components. The company supplies aluminium die-castings for two-wheelers and four-wheelers. The company's portfolio includes high pressure die-castings, low pressure die-castings and gravity die-casted components weighing between 10 grams to 6.25 kg. In 1999, the company established Sunbeam Auto pistons with a capacity of 0.4m pistons per annum that has been enhanced to around 4m currently. Sunbeam's domestic customers include Denso India, Hero Honda, Hero Puch, Hero Briggs & Stratton, Kinetic Motors, Maruti Udyog, Munjal Showa, Sona Koyo Steering Systems and Visteon Powertrain Control Systems India. The company entered the export market in 1998 and supplies to DaimlerChrysler (Germany), Eralmetall (Germany), Robert Bosch (USA) and Visteon Powertrain Control Systems (USA).
Tel: +91 124 5129200 Fax: +91 124 5129751/ 52 Internet: http://www.sunbeamauto.com Senior Officers
Ashok Kumar Munjal, Managing Director PN Sandhu, Senior Vice President, Operations
Products
Alternator housing, bottom cases, brake levers, caliper brakes, cap crank bearings, clutch levers, crank cases and covers, cylinder blocks, cylinder heads and covers, hubs, hinges, pistons, motor trager links, rocker arms, seat benches, sliding tubes, trager generator and transmission cases.
Recent Developments
Corporate strategy Sunbeams entry into pistons has helped the company gain new ground by expanding into the four wheeler space from its traditional two wheeler base. Its pistons business has seen sharp growth starting with 0.4m to a current 4m capacity in seven years. This has naturally widened its customer base beyond twowheelers where it supplied solely to the Hero Group. Sunbeam has established a strong R&D capability allowing it to grow in the aluminium die-cast components business. Joint-ventures Sunbeam Auto has a technical collaboration with Honda Foundry Company Ltd (Japan) for its pistons unit, Sunbeam Auto Pistons. It has a production capacity of 4m pistons per annum and supplies to both two and fourwheelers. Investments In 1999, Sunbeam Auto commissioned a piston manufacturing facility in Gurgaon (Haryana). Sunbeam manufactures pistons of 40mm to 100mm diameter for both the two-wheeler and four-wheeler segments. The plant has an installed capacity of producing 2m pistons per annum.
Plants
Gurgaon (Haryana)
Sales
c. INR 8.2bn (129.56m, 31 March 2008)
Employees
c. 3,450 (31 March 2008)
Contracts
Sunbeam is developing throttle bodies for supply to Robert Bosch Corp. USA which is to be used for GM USA. Sunbeam supplies front and rear alternator housing to Visteon Powertrain Control Systems India on the basis of a long term arrangement. Sunbeam has also developed starter motor housing and diode plates for Visteon Powertrain USA.
Infrastructure Sunbeam has an installed capacity of 30,000 MT aluminium die cast components per annum. Certifications The company has been accredited with QS 9000 status.
282
New Product Developments Sunbeam has developed the components of Hero

Puch Motorcycles of 50cc and 65cc.
Financial Overview In the financial year ended 31 March 2008 Sunbeam Auto Ltd generated sales estimated at INR 8.2bn (129.56m, 31 March 2008). The company is privately held and is not obliged to publish financial data. Outlook Sunbeam Autos growth is hinged to that of India's largest producer of
two-wheelers, Hero Honda and with four-wheeler major Maruti Udyog. Though exports do not form a major portion of revenues for the company at this moment, its exports to large suppliers gives the company future prospects of increased business. Being involved in product development for its customers, Sunbeam is able to add value and hence earn greater margins. The company is prepared for the sales growth by adding production capacity.
283
Sundaram Brake Linings

Brake pads and parts
Address
Sundaram Brake Linings Ltd. Padi,Chennai, Tamil Nadu 600 050 India
Sundaram Brake Linings is a subsidiary of the TVS Group of companies. The company manufactures automotive, nonautomotive and industrial friction materials with a strong presence in the domestic OEM and aftermarket.
Sundaram Brake Linings (SBL) was established as a joint-venture in 1976. The Company has three manufacturing plants with one dedicated exclusively to manufacturing asbestos-free brake linings. The combined production capacity of all three plants exceeds one million brake blocks per month. SBL also manufactures asbestos-free woven clutch facings, disc pads, flexible rolls and insitu bonded shoes. In 2001, SBL became the first friction material manufacturer in the world to win the Deming Application prize for practicing Total Quality Management (TQM). The Company is also ISO/TS 16949and ISO-14001 certified. SBL products have been tested to meet European ECE-R90, American FMVSS 121, Australian ADR 35/38, South African SABS 1506 requirements besides Indian IS 11852. 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. SBL customers include Mercedes-Benz, Renault, Scania+ and Volvo.
Tel: + 91 44 42205300 Fax: + 91 44 42205572 Internet: http://www.tvsbrakelinings.com Senior Officers

K Mahesh, Chairman & Managing Director R Ramasubramanian, President GR Chandramouli, Executive Vice President, Market Development V Ramakrishnan, GM, Exports
Products
Asbestos-free and asbestos based brake linings, clutch facings, clutch linings, friction material for industrial applications, disc brake pads, flexible rolls for automotive applications, lined brake/clutch shoes.
Recent Developments
Corporate strategy SBL has a strong focus on the export market with a significant proportion of sales generated overseas. Since 45% of sales come from exports to 60 countries, SBL has an established warehouse facility closer to its markets such as in North America. It largely exports to the commercial vehicles sector which has huge requirements for brake linings ensuring a regular demand for its products. SBL has built a large R&D infrastructure with significant investments into new product development. The extent of its facility can be judged from its research centre being recognised in the friction materials industry. Clearly, the company has leveraged Indias R&D skills and sought growth in the overseas market.
Plants
Tamil Nadu (3)
Sales
New Product Developments Nearly 4% of the company sales are spent on

research and development. Over the years SBLs 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. R&D has developed composite railway blocks inhouse which will be introduced soon and R&D is now equipped with Railway Brake Dynometer.
Employees
800 (2005)
Financial Overview In the financial year ended 31 March 2008, SBL recorded
sales of INR1.87bn (29.65m, March 2008), a slight decrease as compared to INR1.89bn (32.65m, 31 March 2007) in 2007. Profit before interest, depreciation and tax (EBDITA) was INR186.1m (2.94m, 31 March 2008) in 2008 as compared to INR216.6m (3.74m, 31 March 2007), a decrease of 14.1% over previous financial year. Net profit decreased by 11.7% to INR121.58m (1.92m, 31 March 2008) in 2008 from INR137.7m (2.38m, 31 March 2007) in 2007.
Outlook SBL has seen steady growth in its business with margins growing faster than sales. SBLs strength lies in its R&D. It is rare, in India, for an auto component
284
company to spend 4% of its sale revenue as SBL does. They have integrated the companys products, technologies, and helped in reducing costs and improving production efficiency. Being a Deming award winning company will help SBL in increasing their exports.
285
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
Employees
1,200 (June 2005)
286
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 Claytons 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 companys 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 years 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 SCLs aluminium casting business. SCLs 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.
287
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, Indias 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 companys 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
288
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
289
previous years 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
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.
290
Suprajit Engineering
Automotive cables and gauges
Address
Suprajit Engineering Limited No.100, Bommasandra Indl. Area, Bangalore - 560 099 India
Suprajit Engineering caters to a wide spectrum of automotive and non-automotive control cable requirements. It is India's largest manufacturer of automotive cables with a capacity of over 40 million cables a year. It supplies the two-wheeler, passenger car, tractor and commercial vehicle segments. .
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. Suprajit Engineering has recorded a Compounded Annual Growth Rate (CAGR) of 35% since inception. Speedometer business contributes 10-12% to sales and the balance comes from cable business, of which mostly comes from TVS. SEL enjoys 15% operating margin. Currently the company derives 3% of its revenues from exports. SELs customers consists of Bajaj Auto, Brose, Class India, Calsonic Kansei, Eicher Motors, Ford, Force Motors, General Motors, Hero Honda Motors, Honda Motorcycles & Scooters, Hyundai Motors, JCB, Kinetic Engineering, Kinetic Motor Company, LML, Lear India, Mahindra & Mahindra, Maruti Udyog, New Holland Tractors, Piaggio, Swaraj Mazda, TAFE, Tata Motors, Toyota, TVS Motor Company and Yamaha Motor. The company is a single source supplier to Yamaha for cables.
Tel: +91 80 7833827 Fax: +91 80 7833279 Internet: http://www.suprajit.com Senior Officers
MRB Punja, Chairman K Ajith Kumar, Managing Director Harish Kumar, Deputy ManagerMarketing V Manjunatha, Manager- Exports Narayan Shankar K, General ManagerOperations
Products
Brake cables, choke cables, clutch cables, fuel gauges, gear shift cables, latch release cables, mirror cable assemblies, seat recliner cables, speedometers, starting cables, tachometer cables, tachometers, temperature gauges, throttle cables, window regulator cables
Recent Developments
Corporate Strategy SEL is leveraging its low cost capability to supply its European subsidiary, Gills Cables. Gill was repositioned as global technology and engineering centre and the front-end for the companys European operations. SEL has transferred production of high volume export specific products to a dedicated export oriented facility to leverage tax benefits available. SEL etes a global footprint with setup in in the ASEAN region, Korea, China and assembly operations in Hungary. 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. Acquisitions In April 2006, SEL acquired CTP Gils Cables, a UK based automotive cable manufacturer from Carclo PLC. The company also acquired its 50% stake in CTP Suprajit Automotive Pvt. Ltd paying 2.2m (3.18m, 30 April 2006) for the acquisition. The joint-venture has since been renamed Suprajit Automotive Private Ltd and manages export oriented production. In 2004, SEL acquired four sick units from Karnataka State Financial Corporation. Two plants have been utilized in SEL's chemical production, one was structured to install cable production and the fourth one to start speedometer production. In 2002, SEL acquired Shah Concabs Private Ltd, another cable manufacturer
Plants
India: Chakan , Bangalore (3), Manesar , Vapi , Pant Nagar
Sales
Employees
c.700 (2008)
291
based in Gujarat (India), for a cash deal of INR50m (1.18m, 31 March 2002). The move helped the company strengthen its presence in all automotive cables especially in the commercial vehicle segment. In the financial year 2004, SEL merged Shah Concabs with itself. Divestment In 2007, SEL transferred high volume production from Gills Cables, UK to its Bangalore based export oriented unit. Minor assembly operations have been shifted to a new location in UK. In 2005, SEL sold its interest in subsidiary Suprawin Technologies. Joint-ventures In 2007, SEL signed a 70:30 joint venture with Jiang Yin Yuan Feng Communications Equipments Co, China for the production of automotive cables in China. Also in 2007, SEL signed an agreement with Michang Cable Company, Korea for logistics management in the respective countries for future projects. In December 2004, SEL entered into a 50:50 joint-venture with UK based Carclo, to set up an export oriented unit. The objective of the joint-venture was to outsource, automotive cables, the existing business of CTP Gills Cables for its European customers. The project involved an investment of around INR120m (2.01m, 31 December 2004) located at Doddaballapur, near Bangalore (Karnataka). The plant exports cables to Jaguar, Toyota and GM. Carclo was sourcing some of its requirements from SEL since 2000. Production at the new plant started in October 2005. SEL later bought into the venture and made it a subsidiary. SEL has a technical collaboration with Toh Fon Machine Company for automotive cables. SEL shares a technical collaboration with Chao Long Motor for speedometers. Investments In April 2007, Suprajit commissioned its cable manufacturing facility at Pantnagar (Uttaranchal). In 2007, Suprajit commissioned its cable manufacturing facility at its second plant at Manesar (Haryana). In July 2005, SEL increased installed cable production capacity from 38m cables to 50m cables per annum. In June 2005, SEL completed expansion and up-gradation of its Vapi (Gujarat, India) plant bringing it at par with other manufacturing facilities. In 2003, SEL commissioned a cable plant at Pune (Maharashtra, India) for customers in the Western Zone. Contracts In December 2005, SEL won an order from Textron, USA for lawn mower cables. Even though the nature of the order is non-automotive, it is significant because Textron has interests in the automotive segment. Certifications Four units of SEL have been accredited with TS 16949 status. Additonally, SELs Manesar (Haryana, India) unit is certified with ISO14000 and ISO 18000 status.
Financial Overview
During the financial year 2008, SEL recorded sales worth INR1.8bn (28.56m, 31 March 2008), a decline of 12.62% compared to INR2.06bn (35.62m, 31 March 2007) in 2007. Profit before tax reduced by 37.28% to INR138.3m (2.2m, 31 March 2008) compared to INR220.87m (3.81m, 31 March 2007) in 2007. Net Profit declined by 31.09% to INR79.81m (1.27m, 31 March 2008) from INR115.83m (2.00m, 31 March 2007) in 2007 on account of production transfers between SELs manufacturing facilities. Year 2008 2007 2006 Gross sales, INR bn 1.80 2.06 1.38 Operating profit, INR m 303.11 227.92 Profit before tax, INR m 138.3 220.87 187.74 Net Profit, INR m 79.81 115.83 128
292
2005 2004 Year 2008 2007 2006 2005 2004
1.09 0.83 Gross sales, m 28.56 35.62 25.65 19.23 15.42
182.37 146.25 Operating profit, m 5.23 4.24 3.23 2.73
148.11 119.09 Profit before tax, m 2.20 3.81 3.50 2.62 2.22
97.89 84.84 Net Profit, m 1.27 2.00 2.38 1.73 1.58
Outlook The Indian automotive suppliers witness potential growth opportunities from outsourcing by OEMs and tier-one suppliers overseas. SEL has made significant headway in this regard. Cables, being a high production cost, low technology product area, makes it viable to produce in low-cost countries. Hence, exports of cable from India is a high potential area for SEL. The company's decision to scale up its global operations has helped SEL to reduce its dependence on the domestic two wheeler business. 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.
293
Systech
Diversified automotive supplier
Address
Mahindra & Mahindra Limited MSAT Division Mahindra Towers GM Bhosle Road Mumbai- 400 018 Maharashtra India Tel: + 91 22 493 1441 Fax: + 91 22 495 1166
Systech, earlier known as Mahindra Systems & Automotive Technology (MSAT), is the arm of the Mahindra & Mahindra group, leading its automotive components foray. It is a holding company of various component divisions of the Mahindra Group.
Established in September 2004, Systech was formed to lead the Mahindra Groups diversification into the automotive components business. Currently its structure is loosely defined as a holding company of all Mahindra Group supplier subsidiaries. In recent times, the Mahindra Group has grown its components business through acquisitions. Systech comprises of three core units: Mahindra Engineering Services (MES): This is a service provider of design and engineering services. MES offers enhanced design, CAD and CAE services to the automotive, aerospace and general engineering domains. The Sourcing Unit: This division primarily focuses on vendor management and product development for global OEMs. The Manufacturing Unit: This division has several companies that produce forgings, gears, steel, stampings, composites and castings. Most global acquisitions of Systech have been under this arm. The Manufacturing Unit has six operating arms that produce forgings, castings, gears, steel, stampings and composites with manufacturing locations in India and Europe.
Internet:
http://www.mahindrasystech.com
Senior Officers
Keshub Mahindra, Chairman Anand G Manhindra, Vice Chairman & Managing Director Hemant Luthra, President, MSAT

Automotive forgings, crankshafts, steering knuckles, connecting rods, propeller shafts, clutches, universal joint kits, steering joints, steering column parts and axle shafts, transmission gears, couplings, clutch plates, synchronisers, power take off clutches used in the transmission, engine and differential gear boxes Corporate strategy MSAT is increasingly looking at strategic sourcing services from non-Mahindra OEMs. Various companies have been bought under MSAT over the past two years adding to its product range. Though MSAT is at present a division of Mahindra & Mahindra, MSATs separation will eventually enable it to cater to non-Mahindra clients. MSAT is on a lookout for further acquisitions in the North American and European regions. Through acquisitions, MSAT plans to acquire ready product range, technology, customers and marketing networks in the overseas market. Its acquisitions in India will focus on manufacturing and engineering primarily for export customers. Acquisitions In January 2007, Systech acquired a 90.47% stake in Schoneweiss & Co. GmbH., a leading German manufacturer of forgings. Schoneweiss is one of the top five axle beam manufacturers in the world and specializes in suspension, power train and engine parts. The company has forging capacity of 50,000 tonnes per annum (TPA) and turnover of 90m (2005). The company supplies to leading OEMs including include Daimler Group, MAN, Scania and Volkswagen. Schoneweiss has three manufacturing plants in Hagen and Gevelsberg, Germany with 550 employees. In September 2006, Systech acquired a 67.9% stake in Jeco Holding AG, one of the top five forging companies in Germany for 140m. Jeco Holding AG is primarily focused on the Truck, Bus & Trailer markets. Its major products include gear boxes, engine & axle parts, hubs, gears and piston heads. The company has forging production of 100,000 TPA and revenues of 180m (2005). The company supplies to leading OEMs and Tier 1 suppliers, including Daimler Group, ZF, MAN Nutzfahrzeuge, Volvo, Linde, Renault, Agco, Kessler and Kolbenschmidt. In January 2006, MSAT acquired 98.6% holding in Stokes Group, UKs largest auto forgings company. Stokes Group comprises of 3 companies and 2 manufacturing locations at Walsall and Dudley (both UK) with a client base consisting of Koyo Bearings, GWK Group, Land Rover, ZF, Bosch, Bentler, Visteon, Ford and Jaguar. During the financial year ended 31 December 2004,
Plants
India: Maharashtra (4), Gujarat (2) UK(2)
Sales
MSAT Group: c. INR10bn (177.05m, 31 March 2005) (year to 31.03.05)
Employees
c. 780 (2004)
294
Stokes Group recorded sales worth GBP25m (35.31m, 31 December 2004). In December 2005, Mahindra & Mahindra acquired a 88.41% stake in Plexion Technologies (India) Limited. Plexion is a provider of Computer Aided Engineering Services. The company has operations in Asia, Germany, U.K and USA, focusing on aerospace & automotive engineering businesses. In June 2005, Mahindra Automotive Steels (MASPL) acquired a Chakanbased (Maharashtra) forging facility from Amforge Industries for an undisclosed amount. The facility supplies crankshafts, steering knuckles and connecting rods to Tata Motors, Maruti Udyog, Mahindra & Mahindra, Kirloskar Oil Engines and Escorts. The facility has an installed capacity of 40,000 tons and recorded sales worth INR2.10bn (40.06m, 30 June 2005) in 2005.
Certifications Mahindra Sona was certified ISO-9001 in 1995 and QS-9000 in 1999. Mahindra SAR Transmission was certified QS-9000 in 2001 from TUV Suddeustshchland and has a ISO/TS-16949-2002 certification. Joint-ventures Siro Plast has a technical agreement with Menzolit GmbH (Germany) for sheet-moulded components and dough-moulded components. Mahindra Sona Ltd was established in 1995 as a joint-venture between Mahindra & Mahindra and Sona Koyo Steering Systems. 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. Contracts MSAT is working on the Renault Logan project for India due for launch in 2007.
Financial Overview Systech is a privately held division of the publicly traded Mahindra group. The group had sales of US$3.8bn in 2007. 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. Mahindra will provide MSAT the finance and administrative support for growth. MSAT is acquiring companies aggressively both overseas and in India to develop an infrastructure to win large global contracts. 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.
295
Talbros Automotive Components

Gaskets, stampings & rubber, forging
Address
Talbros Automotive Components Limited 400, Udyog Vihar Phase - III Gurgaon - 122 016 Haryana India
Tel: +91 124 400 2963 Fax: +91 124 400 2960 Internet: http://www.talbros.com Senior Officers
Naresh Talwar, Chairman- Talwar Automotive Components Umesh Talwar, Vice Chairman and Managing Director Nikhil Talwar, Joint Managing Director Navin Juneja, Finance K Sairam, Operations Sujat Vora, President Gaskets Inderjit Dhariwal, General Manager, Exports Jayant Verma, GM- Operations, Forging KK Dora, President, Stamping & rubber RP Grover, Sr Vice President, Finance Rajendra Kaul, Senior Managers, Sales Praveen Sharma , Manager, Export-incharge
Talbros Automotive Components Limited (TACL) is a part of the Talwar group. The group is a conglomerate of eight automotive supplier companies with plants spread across the country. As the groups flagship company Talbros Automotive Components is Indias largest gasket manufacturer with a diversified customer base and a 40% market share in the domestic gaskets business. Passenger car gaskets account for 24% of the company's sales, commercial vehicles and two-wheelers 20% each and tractors 5%. Exports and replacement market account for 14% and 17% respectively.
Talbros was established in 1956 by the Talwar Brothers in collaboration with Federal-Mogul, USA to produce automotive and industrial gaskets in India. TACL operates from three plants strategically located in Chennai (Tamil Nadu), Faridabad (Haryana) and Pune (Maharashtra). Other group companies consist of: Allied Nippon Ltd: manufactures brake pads, shoes, discs, hydraulics and clutch facings. Super Oil Seals India: manufactures oil seals for automotive applications Super Seals India: manufactures hoses for automotive and industrial application, oil seals Talbros Engineering Limited: manufactures automotive axles, king pins, spline shafts and forgings. Talbros Private limited: manufactures rubberised cork sheets, frames, rolls, washers, rubberised cork gaskets, suspension rubber bushes, kits, bellows, rubber metal components, steering and axle boots, dust covers and engine mountings. Nippon Leakless: is a joint venture between TACL and Nippon Leakless, Japan for the supply of gaskets to Japanese OEMs. QH Talbros: QH Talbros is a joint-venture between the TACL and Quinton Hazell Automotive. The company is market leader in safety critical, sealed for life and self lubricating ball joints for steering and suspension systems. QH Talbros also manufactures tie rod ends, ball suspension joints, rack ends, drag links, centrelink assembly, stabilizer joints, and complete steering linkage assembly. TACL holds an 8% stake in the company. XO Stampings Limited: manufactures sheet metal automotive components for vehicle suspension and steering linkages, brake shoe back plates and airconditioner components. Talbros' customers include Ashok Leyland, Bajaj Auto, Eicher Motors, Escorts, Force Motors, Hero Honda Motors, Hindustan Motors, Honda Motorcycle & Scooters India, Hyundai Motors India, International Tractors India, Kinetic Engineering, Kirloskar Oil Engines, L&T John Deere, LML, Mahindra & Mahindra, Maruti Udyog, MICO, New Holland Tractors India, Punjab Tractors, Rane (Madras), Royal Enfield Motors, Simpson &Co, Swaraj Mazda, Tata Cummins, Tata Motors, TAFE and TVS.
Products
Cylinder head gaskets, seals, secondary gaskets and manifold and exhaust systems, forged and machined auto components, suspension arms, steering linkages, back plat disc pads, dust covers, rubber bushes
Plants
Chennai (Tamil Nadu), Faridabad (Haryana), Haridwar (Uttarakhand), Lucknow (UP), Pune (Maharashtra)
Sales
INR1.85bn (29.35m, 31 March 2008)
Employees Recent Developments

850 (31 March 2007) Corporate strategy
296
TACL has recently restructured its businesses, consolidating most automotive businesses under the Talbros brand. Further, TACL has embarked on an ambitious expansion plan which involves addition of new products, technologies and processes across three operating verticals. TACL is upgrading its present gasket manufacturing facilities to improve its product mix. Additionally, Talbros is tapping the Japanese passenger car OEMs a segment where TACL is relatively weak - through a joint-venture with Nippon Leakless. TACL generated 86.08% of its revenues through gasket sales. The figure is targetted to come down to 51% by 2010, with rapid scaling up of the forgings, stampings and rubber businesses. The tier-II operations of the stampings business are being upgraded for tier-I supplies. Talbros has been using a high value proposition with gasket sales mainly in the engine segment. The company is also laying increased emphasis on machined forgings to increase value addition. Acquisitions In 2007, TACL acquired sheet metal components business of XO Stampings. XO Stampings was a tier II vendor to Tata Motors and Maruti Suzuki. Joint-ventures In January 2005, Talbros entered into a 40:60 joint-venture with Nippon Leakless Corporation to supply Honda and its associate companies in India. According to the agreement, sales by Talbrosto Honda and its associates in India were transferred to the joint-venture over a three-year period ended April 2008. The two companies committed an investment of INR120m (2.1m, 31 January 2005) in the joint-venture and generate sales worth INR500m (8.8m, 31 January 2005) annually. In 2004, Talbros formed an agreement with Ishikawa Gaskets Company (Japan) for gasket technology for diesel engines. In 2003, Federal Mogul divested its 30% holding in Talbros as it filed for chapter 11 protection. While exiting Talbros, Federal Mogul signed a 10-year technical assistance agreement with Talbros for gasket production. Investments In 2007, Talbros announced a greenfield sheet metal unit in Lucknow for supplies to Tata Motors. In 2007, Talbros announced a new gasket manufacturing facility at Uttarakhand at a capital outlay of INR 110m (1.90m, 31 March 2007). The plant is scheduled for start in 2009. Also in 2007, Talbros announced the expansion and relocation of the stamping business acquired from XO Stampings. XOs product range was widened, quality improved and facilities upgraded at a cost of INR 60m (1.04m, 31 March 2007). In 2007, TACL announced the addition of marching facilities to its forging plant at a cost of INR 70m (1.21m, 31 March 2007). Also in 2007, the Nippon Leakless joint-venture announced a greenfield facility at Hero Honda Vendor Park at Haridwar. TACL made an investment of INR 30m (0.52m, 31 March 2007). 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 (0.54m, 31 March 2007). Also in 2007, TACL announced an expansion and technology up gradation at its Faridabad and Pune based Gasket manufacturing units at a capital consideration of INR 70m (1.21m, 31 March 2007). In January 2007, Talbros Automotive Components commissioned a new 8000 ton per annum forging facility at Bawal (Haryana) for supplies to QH Talbros and other customers. Around 35% capacity is earmarked for exports. Talbros plans to extend its forging capabilities to fully machined forgings. Contracts Talbros is the single source supplier of gaskets to Honda Motorcycle & Scooters India. Talbros supplies single source to Honda Siel India and Honda Power Products. Talbros supplies gaskets to the GM Chevrolet Tavera program. Talbros is the single source supplier of gaskets to Tata Cummins.
297
Talbros is the single source supplier of gaskets to L&T John Deere.
Certifications TACL has been accredited with ISO 14001 and TS 16949 certifications.
Financial Overview In the financial year ended 31 March 2008, Talbros

Automotive Components generated sales worth INR1.85bn (29.35m, 31 March 2008), a marginal decrease of 0.5% compared to sales of INR1.86m (32.05m, 31 March 2007) in 2007. Profit before tax grew 5.18% to INR96.59m (1.53m, 31 March 2008) from INR91.83m (1.59m, 31 March 2007) in 2007. Net profit was reported at INR89.27m (1.42m, 31 March 2008), decreasing by 6.3% compared to INR95m (1.64m, 31 March 2007) in 2007. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR bn 1.85 1.86 1.42 1.02 0.82 Net sales, m 29.35 32.05 26.51 17.98 15.37 Operating Profit, INR m 193.04 138.63 127.85 80.05 Operating Profit, m 3.33 2.58 2.26 1.50 Profit Before Tax, INR m 96.59 91.83 84.8 71.64 31.05 Profit Before Tax, m 1.53 1.59 1.58 1.26 0.58 Net Profit, INR m 89.27 95 56.3 46.54 21.25 Net Profit, m 1.42 1.64 1.05 0.82 0.40
Outlook Talbros is ambitiously diversifying and increasing capacity of its current

business. The growing domestic market and a wide customer base will benefit Talbros and help it de-risk its business from cyclical down trends. TACLs gasket joint-venture will have a significant impact on the bottom line as traditional vendor relationships lead to follow through source business. Moreover, increased emphasis on stampings and finished forgings will help Talbros re-orient its revenue mix in a progressive way.
298
Tata AutoComp
Address
Tata Autocomp Systems Ltd Bombay House 24 Homi Mody Street, Fort Mumbai 400 001 India
Tel: +91 22 56658282 Fax: +91 22 22845523 Internet: http://www.tacogroup.com Senior Officers
DS Gupta, Managing Director Nitin Anturkar, Executive Vice President, Engineering S Asokan, Vice President, Supply Chain Management Praveen Gupta, Vice President, Retail Operations Rino Raj, General Manager, Electronics SBG and Head- IT & e-Enabled services Raman Nanda, Executive Vice President, Marketing & Sales UV Rao, Vice President, Special Projects & Administration Prashant Nayak, General Manager, Corporate Planning & HR Vikrant Deshmukh, General Manager, Projects
Tata Autocomp (TACO) is a part of the diversified Tata group. This closely-held automotive supplier consists of 16 manufacturing joint-ventures and one manufacturing subsidiary. TACOs activities are divided into five Strategic Business Groups (SBG) - aftermarket operations, electronics, engineering, manufacturing and supply chain management. TACOs sales have recorded a CAGR of 57% in the 1999 to 2003 period emerging as one of the top five Indian automotive supplier groups.
TACOs 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. Automotive Stampings and Assemblies: sheet metal components and welded assemblies. Knorr Bremse Systems: air-brake systems for heavy commercial vehicles. TACO Hendrickson Suspension Systems: commercial vehicles suspension systems. TACO MobiApps Telematics: vehicle tracking systems. TACO Kunststofftechnik: Plastic interior and exterior parts. Known as Wuedsch Weidinger before being acquired in August 2005. TACO Interiors and Plastics: a joint-venture with Faurecia for interior and exterior plastics. TACO Ficosa: parking-brake, automotive command-and-control, rod-andcable gear-shifting and washer systems and rear-view mirror products. TATA Johnson Controls: seating systems. TATA Nifco Fasteners: fasteners. TATA Toyo Radiator: heat exchangers TATA Yazaki: wiring harnesses TATA Yutaka: exhaust systems and brake discs. TC Springs: suspension springs. Technical Stampings: a joint-venture with SungWoo Hi-Tech Company (South Korea) for sheet metal stampings and assemblies. TACO Visteon: engine induction systems. Under engineering SBG, fee-based activities like product design and development are undertaken. Here, TACO has competence in handling reverse engineering, CAD and CAE implementation, value and application engineering and prototyping. The SBG has progressed very well in managing its enterprises and its supplier base of best-in-class vendors. 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. In TACO Tooling SBG, the company provides customised tooling solutions for its automotive customers. Its previous tooling customers include Toyota Kirloskar (Skin panel tooling for the Rear door of the Qualis model), Honda Siel (Tooling for the new car civic??), Toyota (Tooling for Indonesian project), Nucleon, USA (Tool design), Cummins, UK (Dies for Rotor Laminations and Stator Lamination) and Magnetti Marelli (Instrument cluster in Plastic). TACO has assessed and built a list of automotive components which have a
Products
Seating systems, plastic interiors, plastic exteriors, engine cooling systems, wiring harness, mirrors, control cables, sunvisors, gear shift, windshield washer system, plastic fasteners, stampings and assemblies, chassis & suspension, coil springs, torsion bar, stabiliser bar, exhaust systems, air brake system and vehicle tracking system.
Plants
Tamil Nadu (2), Gujarat, Maharshtra (11)
Sales
Group: c. US$330m (255.56m, 31 March 2005) (Year to 31.03.05)
Employees
Group: 3,500 (2005)
299
competitive edge in being sourced from India. These are machined castings, machined forgings, stampings, rubber parts, turned parts and small system assemblies. Its electronics SBG is at a nascent stage. TACO has done some work in embedded software development field while production of electronic components is yet to begin. Aftermarket SBG is in the conceptual stage. TACO plans to establish automotive spare parts retail and service chain in partnership with a global leader in the field. Taco exported components estimated at US$37.9m (29.38m, 31 March 2005) in 2005, growing approximately 57% over US$24.1m (19.87m, 31 March 2004) in 2004. In the period, the export share of company sales increased from 9% in 2004 to 12% in 2005. Taco has a target to generate 50% of its sales from exports by 2008. Tacos exports sales include engineering services, machined castings and forgings, system assemblies, plastic components and wiring harnesses. Tacos customers include Albion Automotive, Ashok Leyland, Behr, Bajaj Auto, Cummins, CNH, DaimlerChrysler, Delphi, Escorts, Eicher, Enfield, Faurecia, Ford, Fiat, Ficosa International, GM, Gabriel, Honda Siel, Honda Motorcycle & Scooter, Hyundai Motors, Honeywell Engineering, Hero Honda, Johnson Controls, L&TJohn Deere Ltd, Magnetti Marelli, Mahindra & Mahindra, Mitsubishi, Punjab Tractors, Piaggio, SAN Motors, Tong Yang Group, Textron, TAFE, Toyota, Tata Motors, UFI, Valeo, Visteon, Volvo, Volkwagen and Yazaki.
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. For this purpose, it set up 13 joint-ventures with global majors for the manufacture of major components required for passenger cars. This move allowed TACO to access and build competence in modern technology of automotive parts without allocating excessive resources in the project. Further, TACO acts as a holding company of the manufacturing units while each of them has an independent management. This gives TACO a free hand in growing its business. 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. Apart from manufacturing, TACO has a significant focus on engineering, logistics and services business areas. Acquisitions In August 2005, TACO announced the acquisition of German plastic components supplier Wundsch Weidinger. The 270 employee company was acquired through TACOs German subsidiary. The company had filed for insolvency in March 2005. Weidinger has a plant in Coburg (Bavaria, Germany) with customers including Audi, Bentley, BMW, Daimler Chrysler, Volkswagen and Volvo. Joint-ventures In June 2005, Taco formed two joint-ventures with Visteon, TACO Visteon Automotive Products (TVAP) is a stand-alone entity for the production of engine induction systems and lighting systems for the Indian OEMs. The second venture Visteon TACO Engineering was established to provide CAD, CAE and other services for Visteons global operations. In 2005, TACO announced a joint-venture with MobiApps under the name of TACO MobiApps Telematics (TMT). The company offers vehicle tracking systems and logistics solutions based on GPS enabled by GSM and CDMA technologies. In 2005, TACO formed a joint-venture with Stadco (UK), Tata Stadco Automotive to offer low-cost body system design and development services for global component suppliers and vehicle manufacturers. Coventry (UK) based, Stadco has developed expertise in body-in-white engineering and manufacturing. Investments In June 2005, TACO-Knorr Bremse inaugurated its air-brake systems manufacturing facility at Pune (Maharashtra). The joint-venture supplies airbrake systems and components including air brake valves, air supply /
300
treatment systems, actuators, automatic slack adjusters, foundation brakes and allied systems to commercial vehicle manufacturers in the domestic market. In June 2005, Taco formed two joint-ventures with Visteon at an investment of INR 550m (10.5m, 30 June 2005). In April 2005, Taco inaugurated its Tata Ficosa export-oriented plant located near Pune (Maharashtra). The facility will cater to global customer requirements for rear view mirror systems. In February 2005, Tata Auto Plastic established a warehouse and assembly facility near Bangalore to supply Toyota Kirloskar Motors. This was followed by setting up a moulding facility. In March 2003, TACO bought a 30.7% management control for INR162m (3.16m, 31 March 2003) in JBM SungWoo from Jai Bharat Maruti (JBM), one of the major suppliers of steel stampings to Maruti. Through 2001, a total of INR90m (2.1m, 31 December 2001) was invested in TACO joint-venture Tata Yutaka for purchase of land, factory and equipment for exhaust systems production. Contracts In 1999, 85% of TACOs sales came from Tata Motors, but TACO has reduced the dependence to 45% by winning new contracts from most Indian OEM and from exports. In 2004, TACO joint-venture with Faurecia, Tata Auto Plastics earned the contract to supply ashtrays to the current GM Vectra model. In 2003, Tata Auto Plastics began supply of small plastic parts to GM Corsa program. In 2004 Tata Johnson Controls, earned the contract to supply seats for Ford Fusion model in India.
New Product Developments TACOs strategy is to build its competence in application engineering, product design and knowledge-based processes. It sources technology and products from its joint-venture partners rather than investing in original R&D. Financial Overview In the financial year ended 31 March 2005, Tata AutoComp generated estimated sales of US$330m (255.6m, 31 March 2005), an increase of 26.4% over US$261m (214.4m, 31 March 2004) in 2004. Being an unlisted company, TACO does not publish its financial results. Outlook Tata AutoComp is a top five Indian automotive supplier at CAGR of 57% in its eight years since inception. To reach its target of US$1.0bn sales, Taco plans to grow to 50 joint-ventures. 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. TACOs engineering SBG has high potential in earning foreign income. In the future, incremental sales would come from aftermarket and Electronic SBGs which are yet to begin full operations. TACO plans an IPO in 2006 or 2007 which would bring in much needed capital to fund expansions and initiate aftermarket and electronic SBGs.
301
Tata Ficosa
Rear view mirrors, control cables, gear shifters, windshield washer systems, parking brake systems
Address
Tata Ficosa Automotive Ltd, Plot #1, Survey #235/245, Hinjewadi, Taluka Mulshi, Pune- 411 027, Maharastra, India
Tata Ficosa is part of the Taco group. TACO, an associate of Tata Motors, operates 17 joint-ventures encompassing a wide component range.
Tata Ficosa was established in 1998 as a 50:50 joint-venture with Ficosa International of Spain. 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. Cable and control systems: The company supplies parking brake cable systems, clutch control cables, throttle cables, gear shift with cable mechanisms, hood and fuel filler cap release cables and seat and door latch release cables. Washer systems: The company supplies windshield washer systems and associated products including expansion tanks, brake fluid tanks, pumps, water level sensor, valves, filters and nozzles, etc. 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. Gear shifter systems: The gear shifting product portfolio comprises of rodtype systems, cable-type systems, dashboard systems and ultra-compact systems.
Tel: +91 20 22932133 Fax: +91 20 22932127 Internet: http://www.tacogroup.com Senior Officers
DS Gupta, Chairman Shirish Shewalkar, CEO BP Shiv, Head, business development
Products
Accelerator cable, Bi-directional selfadjusting cable, Choke cable, Clutch cable, Fuel-cap-opening cable, Gearshift system cable, Handbrake cable, Hoodopening cable, Odometer cable, Push-pull systems cable, Seat-control cable, Selfadjusting cable, Speed-control cable, Gear shifters, Interior rear view systems, Exterior rear view systems, Mono pump washers, Dual pump washers
Tata Ficosa customers include Aditya Auto, Brose, Fiat, Ford, General Motors, Hindustan Motors, Honda Siel Cars, L&T John Deere, Mahindra & Mahindra, Tata Motors, Tata Johnson Controls and Toyota Kirloskar Motors. It exports to Meritor, Ficosa (Portugal, Spain and Turkey) and Ficosa (Mexico and USA).
Recent Developments
Corporate strategy Tata Ficosa is adding to its customer base and aggressively increasing exports. Its export business with Ford is noteworthy which extends to programmes in Europe, Mexico and South Africa. Ficosa has been actively sourcing components from Tata Ficosa for its Spanish, Mexican and Portuguese operations. The company is expanding its product range to move up the value chain and become a system supplier. The company has built in-house designing facilities and developed brake lever systems, gear shifter systems and rear view mirrors with hydrophilic film. Joint-ventures Tata Ficosa has a technical alliance with Japan-based Murakami Corporation for rear-view mirror production. Investments In April 2005, Tata Ficosa inaugurated a new manufacturing facility in Hinjewadi, Pune (Maharashtra). The facility manufactures and exports interior rear view mirrors to global automotive OEMs. In February 2004, Tata Ficosa commissioned its second plant with a capacity of 1.2m pieces which was subsequently expanded to 2m pieces. The plant supplies to overseas customers, especially Ford Europe. In November 2002, the company opened its first plant at an investment of over INR60m (1.25m, 30 November 2002). Previously production was being
Plants
India: Pune (Maharashtra) (3)
Sales
INR770m (12.17m, 31 March 2008) (Year to 31.03.08)
Employees
c.230 (2008)
302
carried out from a rented facility. This plant helped Tata Ficosa improve its capabilities and increase its capacity to meet the requirements of its expanding domestic customer base.
Contracts Tata Ficosa supplies rear view mirros to the Tata Vista program. Tata Ficosa supplies rear view mirrors to the Tata Winger program. Tata Ficosa supplies gear shifters to the Tata Vista program. In 2003, Tata Ficosa began supplies of seating system cables to Tata Johnson Controls. In 2003 Tata Ficosa began supplies of gear shifters to Tata Motors. Tata Ficosa supplies washer systems to Fiat India. Tata Ficosa supplies mirrors to Toyota Kirloskar. Tata Ficosa supplies mirrors to Ford in Europe. The company supplies cable type gear shifters for HM Mitsubishi Cedia and Honda City models. In 2002, Tata Ficosa began supplies of parking brake and cable system for the Tata Indigo and Mahindra Scorpio models. In 2002, Tata Ficosa began supplies of mirrors to Ashok Leyland. In 2001, Tata Ficosa began supplies of mirrors to Mahindra & Mahindra. In 2001, the company commenced supplies of cables to Ford in South America and Mexico. In 2001, Ficosa Spain, Mexico and Portugal began sourcing components from Tata Ficosa. In 2000, Tata Ficosa began supplies of mirrors to Fiat India. In 2000, the company commenced supplies of parking break lever and cable system to Ford Ikon model.
Financial Overview
In the financial year ended 31 March 2008, Tata Ficosa sales were INR770m (12.17m, 31 March 2008). 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.
Outlook Tata Ficosa steadily introduces new products from Ficosas International
range. The company has gained sizable business from European OEMs and other players through Ficosa's network. Moreover, its association with Murakami Corporation will help the business unit in introducing new products for the domestic customers. Tata Ficosa is expected to grow with the domestic passenger car market as well as the export opportunities. Ficosa's strength will help the jointventure with new contracts, which is key for its growth. Further, as it becomes a systems supplier, it will move up the value chain as an increasing number of vehicles are developed domestically.
303
Tata Johnson Controls

Seating systems
Address
Tata Johnson Controls Automotive Ltd 301-309, Sohrab Hall 21, Sasoon Road Behind Pune Railway Station Pune- 411 001
A part of the Taco supplier group, Tata Johnson Controls has emerged as a major supplier of seating systems in India in its short time of existence.
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. TJC divides its operations into manufacturing and engineering divisions. The Engineering division handles Johnson Control's global projects, including engineering, design, static, dynamic and crash analysis, prototype building, trim development and mandatory testing. Based in Pune (Maharashtra), the engineering division has 400 engineers servicing 25 of Johnson Controls international customers and product business units in North America, Europe and Asia Pacific. The division is one of Johnson Control's largest offshore engineering centers in India. TJC's customers include Tata Motors, Fiat India, Daimler, Ford India, Piaggio, Mahindra & Mahindra, Royal Enfield and Volvo. TJC supplies to the global operations of Johnson Controls in Mexico, South Africa and North America.
Tel: +91 20 2600 0100 Fax: +91 20 2605 9104 Internet: http://www.tacogroup.com Senior Officers
DS Gupta, Chairman Ashok Belani, CEO Josef Memmel, COO, Engineering Ashutosh Sharma, General Manager, Business development & exports
Products
Arm rests, foam, headrests, metal frames, seat trims, seats
Recent Developments
Corporate strategy Johnson Controls entry into India was based on ready volume business from Tata Motors for its Indica platform variants. Once established, TJCs global relationships helped it win new contracts. TJC has entered the commercial vehicles seating business. The company is developing mechanical and pneumatic suspension seats for high-end truck segment as it anticipates legal changes in truck seating regulations. Further, TJC is widening its product range beyond seats to include instrument clusters from Johnson Control's international portfolio. The company has recently entered the electronic instrument cluster market for the compact saloon segment. TJC's engineering division has assumed an important role for Johnson Controls internationally. A large investment was made and capabilities established to outsource an increasing amount of development work to its Indian joint-venture. Joint-ventures Tata Johnson Controls Automotive is a 50:50 joint-venture between Johnson Controls International BV, Netherlands and Tata Motors. Additionally Johnson Controls GmbH, Germany has technical and financial collaboration with TJC for seating systems. Investments In 2006, TJC increased its seats production capacity to 0.3m sets at its Pune (Maharashtra, India) facility. Also in 2006, TJC increased its installed capacity at its Chennai (Tamil Nadu, India) facility to 40,000 sets per annum from 30,000 sets. In January 2005, TJC formed TJC Cluster Engineering and Electronics for supporting the international operations of Johnson Controls Electronics and developing instrument clusters for Indian OEMs.
Plants
India: Chennai (Tamil Nadu) , Pune, Aurangabad (Maharashtra) (2), Rudrapur (Uttaranchal)
Sales
INR3.5bn (55.30m, 31 March 2008)
Employees
c. 600 (2008)
304
Contracts TJC supplies seats for Tata Indica, Indigo, Safari and Sumo programs. The company supplies seating systems to Daimler India. As a tier-II vendor, TJC supplies headrests and centre armrest for the Toyota Corolla programme to Araco Automotive. TJC supplies to the Ford Ikon program from its Chennai (Tamil Nadu, India) facility. TJC supplies seats to Royal Enfield from its Chennai (Tamil Nadu, India) plant. TJC exports recliners, tracks, guide head restraints, recliner covers, arm rests to Ficosas network, globally. New Product Development Tata Johnson Controls has one of the largest offshore engineering centres in India which serves Johnson Controls' global seating, interior and electronic design requirements. TJC is in the process of launching electronic instrument clusters for passenger cars and utility vehicles, with technology from Johnson Controls. Certifications TJC is accredited with QS 9000, VDA 6.1 and ISO/TS 16949 certifications. TJC is certified OHSAS 18001 (Occupational Health and Safety Management System). TJC became the first company in Taco Group and JCI Asia Pacific to earn this certificate. TJC manufacturing facilities are ISO 14001:2004, ISO 17025:1999, Ford MS 9000, Ford Q1and Sox certified.
Financial Overview
In the financial year ended 31 March 2008, TJC generated sales of INR3.5bn (55.30m, 31 March 2008). TJC is privately held and does not publish its financial statements.
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%. 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. Yet future prospects for TJC are good through its growing revenue streams including domestic component market, exports and engineering services.
305
Tata Steel
Steel
Address
Tata Steel Limited Bombay House 24, Homi Mody Street, Fort Mumbai- 400 001
Tata Steel is a leading supplier of steel and ferro alloy products in India.
Tata Steel segments its business into the following divisions: Steel division: Cold roller products, hot rolled and galvanised cold rolled products constituted 28%, 24 and 14% of the total sales of the division in 2005 respectivly. Ferro Alloys & minerals division: non-automotive Tubes division: non-automotive Bearings division: is a leading supplier of bearings.
Tel: + 91 22 5665 8282 Fax: + 91 22 5665 8113/ 8118 Internet: http://www.tatasteel.com Senior Officers
RN Tata, Chairman B Muthuraman, managing Director T Mukherjee, Deputy Managing Director Steel HM Nerurkar, Vice PresidentKalinganagar Project Orissa AD Baijal, Vice President- Raw materials & Iron making UK Chaturvedi, Vice President- Long Products RP Singh, Vice President- Engineering services & products Koushik Chatterjee, Vice PresidentFinance Anand Sen, Vice President- 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. The company has initiated several cost cutting measures, which includes establishing a captive source of metcoke, which has been in short supply during the past financial year. The company is eyeing installed capacity of 15m tonnes per annum by 2010 to establish global scale and presence. The planned expansions shall be brought through hiking capacities at existing facilities, establishing new facilities and acquisitions in the domestic and international market. 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. Acquisition In February 2005, Tata Steel acquired the steel business of NatSteel Limited, Singapore for US$ 486.4m ( 367.40m, 28 February 2005). NatSteel owns steel mills in Australia, China, Philippines, Thailand and Vietnam with expertise in flat products. The acquired entities have a combind production capacity of 1.7m tonnes per annum of rebars, wire rods, pre-stressed concrete wires and strands. The final amount is subject to concluding audit. In December 2005, Tata Steel acquired 100% stake in Millennium Steel Company, Thailand from Siam Cement Company. In 2004, Millennium Steel, Thailands largest steel company with 1.7m tonnes per annum registered sales worth US$ 406m ( 342.83m, 31 December 2005). Millennium Steel supplies to construction and engineering steel (automotive) companies. The acquisition was made as a part of Tata Steels global expansion plan. Joint-ventures In November 2005, Tata Steel and BlueScope Steel announced a 50:50 joint venture for the production of zinc/ aluminium metallic coated steel, painted steel and rollformed steel product and deliver pre-engineered buildings and other building solutions. The new company based in Pune, is setting up a metallic coating and painting facility at Jamshedpur (Jharkhand, India) with a 0.25m ton metallic coating line and a 0.15m ton paint line at a capital cost of INR 9bn ( 167.70m, 30 November 2005) with operations scheduled for a mid 2008 commencement. In June 2005, Tata Steel signed a joint-venture agreement with Iranian Mines and Mining Industries Development and renovation Organisation (IMIDRO) for setting up a 1.5mtpa steel slab making facility, 1.5mtpa steel billet making facility and an additional 3mtpa export oriented steel plant in Iran. Tata Steel also signed an agreement for partnering IMIDRO in an exploration and mining project for unexplored steel mines. Tata Steel was also made a partner for the Hormozgan Steel project, which would establish steel-making project in the Persian Gulf Special Economic Zone at the port city of Bandar Abbas. In January 2005, Tata Steel inked a joint-venture with West Bengal Industrial
Products
Bearings, cold rolled steel, steel wires
Plants
Australia, China, India, Iran, Philippines, Thailand, Vietnam
Sales
INR 160.24bn ( 2.84bn, 31 March 2005) (Year to 31.03.05)
Employees
39,648 (2005)
306
Development Corporation (WBIDC) under the name Hoogly Metcoke & Power Company Limited. Tata Steel holds 98% equity in the company, which is setting up a merchant cokery at Haldia (West Bengal, India) with a capacity of 0.8m tonnes per annum of coke and 55MW of power for consumption by Tata Steel. In October 2004, Tata Steel inked a 50:50 joint-venture with Larsen & Toubro for establishing a deep water port in Orissa (India).
Divestment In 2004-05, Tata Steel divested its 54.9% holding in Stewarts and Lloyds of India at a price of INR 25 ( 0.44, 31 March 2005) per share. Investments In September 2005, Tata Steel announced a 12m-ton per annum steel plant project at Jharkhand (India) at a capital cost of INR 420bn ( 7.94bn, 30 September 2005). The construction scheduled in two phases with the first phase establishing 6m ton per annum capacity. Also in September 2005, 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 ( 2.08bn, 30 September 2005). In July 2005, Tata Steel acquired a 5% stake in Carborough Downs Coal Project located at Queensland, Australia, which is a global supplier of highgrade metallurgical coal. 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. In June 2005, Tata Steel signed an MoU for setting up a 5mtpa green field integrated facility at Bastar (Chattisgarh, India). The first phase of the project shall have an installed capacity of 2mtpa. In November 2004, Tata Steel announced the setting up of a green field facility at Kalinganagar (Orissa, India) with an installed capacity of 6m tonnes per annum.
Financial Overview During fiscal 2004-05, Tata Steel recorded a decline of 1.3% in sale of steel products (by volume) owing to the closure of a blast furnace for the expansion program being undertaken by the company. Steel exports also declined by 22% closing the books with 0.51MT in 2005 compared to 0.66MT in 2004, however export revenues in 2005 were higher on account of higher realisations from ferro alloys. Total export sales increased by 46% to INR 21.8bn ( 385.97m, 31 March 2005) compared to previous years export revenue of INR 15.0bn ( 280.21m, 31 March 2004). Total revenue increased from INR 120.61bn ( 2.25bn, 31 March 2004) to INR 160.24bn ( 2.84bn, 31 March 2005) in 2005. Net Profit rose by 99% to INR 34.74bn ( 615.07m, 31 March 2005) in 2005, compared to previous years figure of INR 17.46bn ( 326.17m, 31 March 2004). The supply of hot rolled, cold rolled and galvanised steel to the automotive industry increased by 21% to 0.62m ton in 2005 compared to 0.51m tonnes in 2004.
For the nine-month period ended 31 December 2005, Tata Steel recorded sales worth INR 125.42bn ( 2.35bn, 31 December 2005), an increase of 8.08% compared to previous years figure of INR 116.04bn ( 1.95bn, 31 December 2004). Operating profit for the nine-month period was at INR 48.21bn ( 903.74m, 31 December 2005) in 2005, compared to previous years figure of INR 47.21bn ( 792.39m, 31 December 2004), a change of 2.11%. Net profit improved by 6.19%, closing the books with INR 27.23bn ( 510.45m, 31 December 2005) in 2005 compared to a net profit of INR 25.66bn ( 430.68m, 31 December 2004) in 2004.
Outlook Thi
Year
Gross sales, INR bn 158.77
2005
Operating Profit, INR bn 61.933
Profit Before Tax, INR bn 53.88
Net Profit, INR bn 34.74
307
2004 2003 2002 2001 Year 2005 2004 2003 2002 2001
119.21 97.93 76.07 77.59 Gross sales, bn 2.81 2.23 1.91 1.79 1.90
36.36 23.52 13.57 17.57 Operating Profit, bn 1.10 0.68 0.46 0.32 0.43
28.89 14.92 4.62 8.88 Profit Before Tax, m 953.94 539.69 290.97 108.95 217.00
17.46 10.12 2.05 5.53 Net Profit, m 615.07 329.53 197.36 48.34 135.14
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.. act if necessary Checklist Classification - done Automonitor search done Autocar Pro search done Google search (news + web) done Press Releases, annual reports, company website: done Financial info done SWOT incomplete Competitor watch done FOREX (all figures in original data, INR and EUR) done
Crude price hike Iron ore, metallic scrap, coking coal price hike Freight rate hike
308
Researchers comments/ foot notes comments
309
Tata Toyo Radiators

Engine cooling systems
Address
Tata Toyo Radiators Limited Plot#1, Survey# 235/245 Hinjewadi, Taluka Mulshi Pune- 411 027 Maharashtra India
Tata Toyo Radiators, a part of the TACO group, is a leading supplier of aluminium radiators to the domestic market. Its main customer is Tata Motors.
Tata Toyo Radiator (TTR) is a joint-venture between Taco (51% holding) and Toyo Radiator Company of Japan (40.25% stake) and Mitsubishi Corporation owning the remaining 8.75% of the company. TTR offers complete services for engine cooling systems including design, engineering and manufacturing. TTR's customers include Ashok Leyland, Cummins, Eicher Motors, Escorts, Force Motors, General Motors India, Honda Siel Cars, John Deere, Mahindra & Mahindra, New Holland, Punjab Tractors, Subros, Swaraj Mazda, TAFE and Tata Motors.
Tel: +91 20 5652 4100 Fax: +91 20 2293 2196 Internet: http://www.tacogroup.com Senior Officers
DS Gupta, Managing Director Mandeep Bhalla, CEO Salil Malvankar, Manager Marketing Arvind S Alur, Manager- PPC & Logistics KP Kapadia, Vice President- 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. 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. Over a period of time, 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. 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. 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. Joint-ventures TTR is a three-way joint-venture between Taco (51%), ToyoRadiator (40.25%) and Mitsubishi Corporation (8.75%). Toyo Radiator has contributed the technology in aluminium heat exchangers and Mitsubishi the technical know-how for aluminium non-ferrous products. Investments In 2006, TTR announced its plan to establish assembly lines in Chennai (Tamil Nadu), Lucknow (Uttar Pradesh) and Jamshedpur (Jharkhand) to supply components to Tata Motors and Ashok Leyland. In anticipation of future demand, the company announced expansion of radiator production capacity to 800,000 units per annum from 600,000 units in 2005 investing INR250m (4.43m, 31 March 2005). Contracts TTR supplies radiators to the Tata Indica Vista program. TTR supplies radiators to the Tata Winger program. TTR supplies radiators to the Tata Magic and Tata Ace programs. In 2003, TTR began supply of heater cores to Subros for fitment on Maruti Suzuki Alto, Wagon R and Versa models. In 2003, TTR began supplies of radiators to Mahindra & Mahindra. In 2002, TTR commenced supplies of engine cooling systems to Ashok Leyland for three new models (AL 2516 Cargo, AL 2516VRL and AL 1616 -
Products
Aluminium brazed heat exchangers: Radiators, oil coolers, intercoolers, heater cores, condensers, EGR coolers, fans, fan motors
Plants
Lucknow (Uttar Pradesh), Pune (Maharashtra), Jamshedpur (Jharkhand)
Sales
INR2.14bn (33.8m, 31 March 2008)
Employees
c. 250 (2008)
310
H BS II Hino). In 2002, TTR won a contract from Cummins to supply engine cooling systems. In 2002, the company won a contract from Rising Sun Taiwan for five new cores for supplies to Honda, GM and Chrysler models.
Certification In 2006, TTR announced implementation of Six Sigma, Kaizen, TBEM and ERP systems. In July 2005, TTR was accredited with TS16949 certification. New Product Developments Tata Toyo has in-house design and engineering capability consisting of prototype development, product/system testing, validation, proprietary software for thermal design of heat exchangers and CFD analysis. The company has designed and developed over 150 heat exchangers in the last six years which are under supply contract now. The company is developing downsized and more efficient radiators as opposed to larger ones.
Financial Overview
In the financial year ended 31 March 2008, estimated sales of Tata Toyo Radiators were INR2.14bn (33.8m, 31 March 2008). The company is privately-held and does not publish its detailed financial report.
Outlook
Aluminium radiators are substituting brass radiators. 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 the segment, trends like demand for high power engines are expected to increase the fitment of turbo chargers and heat exchangers. The company is adding value for its customers by developing innovative products like smaller sized radiators with increased efficiency.
311
Technical Stampings Automotive

Sheet metal pressings & assemblies
Address
Technical Stampings Automotive Formerly JBM SungWoo Ltd G17-19, Sipcot Industrial Park Irrungattukottai, Sriperumbudur Taluk Kacheepuram Dist Tamil Nadu- 602 105 India
Incorporated in 1997 as JBM SungWoo, Technical Automotive Stampings Limited (TSAL) commenced operations in 1998. TSAL is a leading supplier of sheet metal components to Hyundai Motors India. The company is a part of Tata Auto Components group.
JBM SungWoo was formed as a three way joint-venture between JBM Tools (50%), SungWoo Hitech, Korea (31%) and Mitsubishi (19%). Subsequently SungWoo Hitech bought out Mitsubishi in the joint-venture while TACO bought out JBM Toolss stake in the entity. TSAL began operations as a dedicated supplier to Hyundai Motor India Ltd (HMIL). Nearly 97% of the companys production is supplied to HMIL. On an average TSAL supplies 150 times a day to the HMIL plant. TSAL supplies to Ashok Leyland, Hyundai Motor India and Tata Johnson Controls.
Tel: + 91 4111 256032 Fax: + 91 4111 256016 Internet: http://www.jbmsw.com Senior Officers
B Venkalarami, CEO Kim Moon Kil, Senior General ManagerPAC TS Mohanasundaram, Senior General Manager- MPC
Recent Developments
Corporate Having established a firm ground, TSAL eyes export opportunities for small assemblies. As the company tries to diversify its customer base from being a dedicated Hyundai vendor, it has initiated an exercise to tap other OEMs. Ford India, GM India, MahindraRenault, have shown interest in sourcing sheet metal components from the company. Going ahead, 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 2,800 ppm in 2003-04 to below 100ppm in 2006. TSAL has initiated a 020 programme under which it plans to reduce rejection rate to 0 ppm, double the production, and reduce the production cost by 20%. Over the next few years TSAL targets a 20% growth in sales on an annual basis. Additionally TSAL has undertaken TPM, TQM and Six Sigma initiatives to strengthen its zero ppm focus. Joint-ventures TSAL is a 50:50 joint-venture between SungWoo Hitech, Korea and TACO. Investments In 2007, TSAL invested INR 100m for adding fresh set of heavy press lines. Most of the lines are being earmarked for catering to increased requirements of Hyundai. Contracts Ford India sources sheet metal assemblies for front and rear seats of the Ford Fusion from TSAL through Tata Johnson Controls. TSAL supplies Battery tray assembly, centre pillar, dash panel, hood, radiator support, rear side member, tailgate for Hyundai Santro and Hyundai Accent. Additionally, TSAL supplies 49 sub-assemblies for Hyundai Santro, 60 for Hyundai Accent and 25 for Hyundai Getz. Further, TSAL imports some components from Korea and integrates them with the ones it makes before they are supplied to HMIL on JIT basis. TSAL also supplies false panels to Ashok Leyland. Infrastructure
Products
Centre and rear member, centre pillar, complete panel assembly rear floor, complete quarter, cowl assembly, dash panel, dies, fender apron assembly, front and rear rail assembly, fuel-filler assembly, hood, jigs, oil pan, package tray, panel assembly hood, panel assembly tail gate, radiator support, rear side MBR, tailgate and tools
Plants
Tamil Nadu
Sales
Employees
c. 1,050 (2007)
312
Presently TSAL has two Light Pressure Lines (LPS) and three Heavy Pressure Lines (HPS) for the production of pressed panels. TSAL has one 1000 ton mechanical press, two 600 ton mechanical press, two 500 ton mechanical presses, three 400 ton mechanical press, one 300 ton mechanical press, eight 200/250 ton mechanical presses and four hemming presses. The company has integrated welding facilities like automatic nut feeders (16), CO2 welding (14), portable spot welding (135), projection welding (19), stationary spot welding (18), riveting machine (1), portable spot welding J gun (102), portable spot welding X gun (66) and stud spot welding machine (7) for welding assembly parts. Additionally TSAL has installed two heavy industries spot welding robots (4 guns) and an under shuttle to facilitate WIP movement. The die maintenance shop has two radial drilling machines, one surface grinder, two milling machines, one lathe machine, two arc welding machines and one welding rod heater.
Certifications TSAL facility is TS 16949-2000, ISO-14001 and OHSAS 18001 certified.
Financial Overview During the financial year ended 31 March 2008, TSAL
generated sales worth INR 3.85bn (61.4m, 31 March 2008). TSAL is a privately held entity and is not obliged to publish financial statements.
Outlook TSAL positioned itself well for growth by aligning with Hyundai Motors. Now, it plans to increase its business with other OEMs, especially those located in the region. But, TSAL will face pricing pressures in event of raw material price increase with its new customers while in the case of HMIL, this was managed by the OEM. HMIL supplies steel to the company which is purchased from Tata Steel under special terms. Hence TSAL sales comprise only of value addition.
TSAL has grown with HMIL and going ahead, with increasing volumes coming from HMIL, the company is poised for growth.
313
Timken
Bearings
Address
Timken India Limited Bara,P.O.Agrico Jamshedpur-831 009 India
Timken India (TIL) is a leading supplier of tapered roller bearings to the domestic automotive industry. Further, the company imports other type of bearings from Timken's global facilities and supplies the industrial, off-highway, railways and aftermarket sectors. The company generated 65% of its sales from the domestic market in 2007.
The company was established as Tata Timken in 1987 as a joint-venture between TELCO (now Tata Motors) and Timken (USA). Timken contributed to the JV with technical know-how and supplied machinery from its American plant. Tata Timken received a license to market and service Timken's products in Bangladesh, Bhutan, India, Nepal and Sri Lanka. In 1999, the company was renamed Timken India Limited after Timken USA bought out Tata in the venture. The company exports its products to Australia, Brazil, Europe, South Africa and the USA. Timken India's automotive customers include Ashok Leyland, Eicher Motors, Force Motors, Hindustan Motors, Mahindra & Mahindra and Tata Motors.
Tel: +91 657 2152 657 Fax: +91 657 2210 117 Internet: http://www.timken.com/india Senior Officers
GW Robinson, Chairman SK Sinha, Deputy Managing Director K Sthanpati, Director- Projects AK Das, Director- Manufacturing Soumitra Hazra, Finance Controller & Company Secretary

AP cartridge roller bearings, needle roller bearings, tapered roller bearing Corporate strategy Timken India is working towards achieving a status of global sourcing hub for the Timken group. Exports to USA, which forms the largest export destination for the company has declined over the past two years due to decreasing demand, dampening the companys export objectives. Timken had taken up production of certain products exclusively for exports. In a bid to widen its reach in the automotive market, Timken is pursuing a strategy of being a complete friction management solution provider. For the same reason the company is investing in strengthening its research capabilities in the country. The company offset the decreasing sales in the US by increasing domestic demand for bearings. Investments In 2006, Timken announced the construction of a greenfield manufacturing facility at Chennai for the production of bearings. In May 2006, Timken commissioned a new large size cup line at the Jamshedpur facility with an investment of INR 45m ( 0.76m, 31 May 2006). In May 2006, Timken commissioned the first phase of DE cones manufacturing line at a net investment of INR 24.5m ( 0.41m, 31 May 2006). In 2004, Timken India added a fresh line for production of 8 tapered single cones at a price of INR 16.5m ( 27.69m, 31 December 2004). The line has an installed capacity of 0.5m units per annum. Also in 2004, Timken India undertook a project for manufacturing double extended cones at an investment of INR105m ( 1.76m, 31 December 2004). The company generates sales of about INR210m (3.52m, 31 December 2004) annually from this project. This product is exclusively for the export markets. In 2003, Timken Engineering and Research India was set up in Bangalore, Karnataka as a wholly owned subsidiary of Timken India. The centre is the second biggest research base for Timken worldwide. Contracts Timken India has the contract to supply pinion tail bearings and other bearings to all Mahindra & Mahindra models. Timken India supplies pinion tail and head bearings to Tata Motors as a Tier-2
Plants
Jharkhand, Tamil Nadu
Sales
INR 3.39bn ( 53.80m, 31 December 2007) (Year to 31.12.07)
Employees
c. 590 (Year to 31 December 2007)
314
vendor through Spicer India, for Sumo, Safari, Spacio, Tatamobile and 207 models. Timken India supplies Ashok Leyland various bearings for Hippo, Beaver, Tusker, Stallion, Comet, Cheetah, Viking and Taurus models. Several contracts are Tier-2 through Automotive Axles. Timken India supplies Force Motors for the Matador model.
Financial Overview During the financial year ended 31 December 2007, Timken
India generated sales worth INR 3.39bn ( 53.80m, 31 December 2007) an increase of 2.41% from a figure of INR 3.31bn ( 56.87m, December 2006) in 2006. Slackened demand in the North American market led to lower export sales while growth in the domestic market was slower than anticipated. Profit Before Tax decreased by 4% to INR 560.9m ( 8.91m, 31 December 2007) in 2007.
Year
Gross sales, INR bn

3.39 3.31 2.91 2.67 2.30

670.9 698.5 626.6 600.6 430.8

560.9 587.5 529.5 508.3 330.8
Net Profit, INR m

374 381.3 348.8 329.9 231.4
2007 2006 2005 2004 2003
Year
Gross sales, m
53.80 56.87 54.56 44.80 40.32
Operating profit, m
10.65 12.00 11.75 10.08 7.55

8.91 10.09 9.93 8.53 5.80
Net Profit, m
5.94 6.55 6.54 5.54 4.06
2007 2006 2005 2004 2003
Outlook With a drop in demand from the US Auto market, Timkens export plans
have been dampened. However growth in domestic demand and an increased product profile have helped in widening Timkens reach in the automotive bearing market and fuel a steady sales growth. The increase in number of products is also attributable to research done in-house at its Indian development centre.
315
Tube Investments
Metal formed and engineered products
Address
Tube Investments of India Ltd Dare House 234, NSC Bose Road Chennai 600 001 Tamil Nadu India
Tel: + 91 44 5217 7770/ 71/ 73 Fax: + 91 44 5211 0404 Internet: http://www.tiindia.com Senior Officers
MA Alagappan, Chairman Adhiraj Sarin, Managing Director U Suryanarayan, Senior Manager, Marketing & Business Development JJ Kapoor, Deputy General Manager, Sales & Export
Tube Investments of India (TI) is the flagship company of the Murugappa Group. The company supplies precision steel tubes and strips, car doorframes, automotive and industrial chains and bicycles. TI is the largest manufacturer of precision tubes in India with a 60% market share. The company is also the largest manufacturer of roll formed car doorframes with a 60% market share. The company has a 37% market share in the automotive chain business in India.
Over the past few years the company has been restructured to focus on automotive business. TI classifies its automotive operations under engineering and metalformed products. 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. Strips comprise a range from sub 350mm to 1000mm width with application in automotive, bearings, cycle, galvanising drums, barrels, fine blanking, stampings, chains and general engineering. In the strips business the company has a dominant position in Southern India. The division operates three facilities, one each in Chennai (Tamil Nadu, India), Mohali (Punjab, India) and Shirwal (Maharashtra, India). The Chennai (Tamil Nadu, India) based facility acts as an export oriented unit. The division contributed 48.40% to the sales of the company. Metal formed products division: This division manufactures stampings (chain), cold roll-forming (car doorframes) and blanking. Within the chains segment, TI divides its business into industrial and automotive chains. The company supplies automotive chains to OEMs and aftermarket. The rollforming business produces roll-formed car doorframes. In the fine blanking business, TI manufactures sprockets and power transmission-related products. Fine blanking operations largely supplement chain production. The division contributes around 17% to the total sales of the company. 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. TI has a domestic client base comprising Ashok Leyland, Bajaj Auto, Delphi Automotive Systems, Gabriel India, General Motors India, Hero Honda Motors, Honda Motorcycle & Scooter India, Hyundai Motor India, Jay Bharat Maruti, Lucas TVS, Mahindra & Mahindra, Maruti Udyog, Munjal Showa, Royal Enfield Motors, Tata Motors, TVS Motor Co, Visteon India and Yamaha Motor India.
Products
Car door frames, car sashes, cold rolled strips, channels, drive and cam chains for motorcycles, fine blanked components, impact beam, SS rails, sheet metal components, starter motor frame (deep drawn), steel tubes (ERW & CDW)
Plants
Engineering division: Maharashtra, Punjab, Tamil Nadu Metal formed productsdivision: Andhra Pradesh, Gujarat, Haryana(2), Tamil Nadu(2), Maharashtra
Sales
INR 23.06bn (364.37m, 31 March 2008)
Recent Developments
Corporate strategy In recent years, Tube Investments has strategically added higher value added products and reduced its dependence and, in certain cases, eliminated the production of low margin products. This strategy has paid off with several new orders from leading OEMs. The company has also reorganised its tubes and chains business and is increasing its international presence. The company has announced three strategic plants in Pune, Haridwar and a new plant for supplying the Tata Nano program. Joint-ventures TI shares a technical agreement with Edward Rose, UK for doorframe production. The company also has an agreement with Dong Won, Korea for doorframes.
Employees
c. 2,734 (2008)
316
Additionally, TI has an agreement with Tsubakimoto Chain Co, Japan for chain production. The company shares a technical collaboration with Wagon Automotive, UK.
Investments In 2008, Tube Investments opened a new plant to supply door frames to the Tata Indica Vista program. The company is also setting up a plant for the Tata Nano project however the location of the unit is yet to be finalised. Also in 2008, Tube Investments started a chain manufacturing plant at Haridwar to supply Hero Honda. In 2005, TI entered into an agreement with the Government of Orissa for setting up a 1.2m ton steel plant in the state. Contracts TI has the single source contract to supply door frames for the Tata Nano. TI supplies door frames for the Hyundai i10 and i20 programs. TI is the supplier of door frames to the Tata Indica Vista program. TI supplies doorframes for the Maruti 800 model. The company supplies doorframes for Hyundai Santro and Hyundai Accent models. In 2005, TI became the sole supplier of doorframes to the Maruti Omni program. Also in 2005, TI won the sole supplier contract of doorframes to the GM Chevrolet Tavera program from its Halol facility. In 2005, TI commenced supplies of strips to China. TI exports precision tubes to Europe, North America and South East Asia. Certifications In 2005, TIs Shirwal (Maharashtra, India) plant was accredited with TS16949 status. Also in 2004-05, TIs Chennai (Tamil Nadu, India) based engineering division Export oriented Unit was certified with TS 16949 status. The plant was also awarded ISO 14001 status. The Mohali (Punjab, India) based engineering facility operated by TI has been accredited with ISO 14001 certification.
Financial Overview During the financial year ended 31 March 2008, TI

registered sales worth INR 23.06bn (364.37m, 31 March 2008) a 13% increase compared to sales of INR 20.26bn (349.93m, 31 March 2007) in 2007. In 2008, TI registered a 49% decrease in Profit Before Tax at INR 1.09bn (17.31m, 31 March 2008). Profit after tax decreased sharply from INR 1.72bn (29.63m, 31 March 2007) in 2007 to INR 695.8m (10.99m, 31 March 2008) in 2008. The drop in earnings was attributed to lower sales to many two wheeler programs. Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Net sales, INR m 23,061.1 20,262.4 15,841.8 15,633.9 12,573.4 Net sales, m 364.37 349.93 294.97 276.72 234.87 Operating Profit, INR m 2389.7 3443.3 3073.7 1800.5 1366.7 Operating Profit, m 37.76 59.47 57.23 31.87 25.53 Profit Before Tax, INR m 1095.5 2181.7 2456.3 1261.8 945.8 Profit Before Tax, m 17.31 37.68 45.74 22.33 17.67 Net Profit, INR m 695.8 1715.9 1829.3 985.5 824.9 Net Profit, m 10.99 29.63 34.06 17.44 15.41
Outlook
317
TI depends on the automotive sector for 80% of its revenues. The 10% drop in two wheeler sales in 2008 resulted in a sharp decline in earnings. But this made TI increase its product range to de-risk its business. The company is now exploring several other products within the purview of its metals and engineering business. A balanced product mix will help the company in steady growth.
318
TVS Srichakra
Tyres
Address
TVS Srichakra Limited TVS Building 7B, West Veli Street Madurai- 625 001
TVS Srichakra is a part of the US$2.5bn TVS Group. The company manufactures industrial pneumatic tyres, farm and implement tyres, skid steer tyres, multipurpose tyres and vintage tyres. In 2007, TVS Srichakra generated 17% of its sales through exports.
Incorporated in 1982, TVS Srichakra has a strong presence in the two-wheeler segment, a major part of which is attributable to its relationship with TVS Motors. Marketed under the badge of TVS Tyres, the company manufactures 11 million tyres annually. TVS has a network of 2050 dealers and 27 warehouses in India. The company has been accredited ISO 9001 and ISO 14001 certification along with a TPM excellence award. TVS Srichakra also exports its products to USA, Europe, Africa, South Africa, South America and South East Asia. The TVS Group and associates holds 39.41% equity in the company.
Tel: + 91 452 2420 461 - 467 Fax: + 91452 2420 466 Internet: http://www.tvstyres.com Senior Officers
S Narayanan, Chairman R Naresh, Executive Vice Chairman Shobhana Ramachandran, Managing Director

Tyres Corporate strategy In recent years, TVS Srichakra has leveraged supply opportunities offered by its sister concern, TVS Motors to establish itself as a strong market player. However, TVS Motors has been steadily losing market share and as a result, TVS Srichakra has been concentrating on increasing its revenues from the aftermarket and exports. 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. Despite these adversities, TVS Srichakra has announced a capacity expansion program to cater to increased demand from South African and South American markets. The strategy is underpinned by the companys target of reaching a 60:40 ratio between domestic sales and exports. 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%. Investments In March 2008, 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. Contracts TVS tyres supplies to the TVS Flame program. TVS tyres supplies to the TVS Apache program. TVS tyres supplies to the TVS Star City program. TVS tyres supplies to the TVS Scooty program. TVS tyres supplies to the Bajaj Pulsar program. TVS tyres supplies to the Bajaj Platina program. TVS tyres supplies to the Hero Honda Passion program. TVS tyres supplies to the Hero Honda Super Splendor program.
Plants
Madurai (Tamil Nadu, India) (2)
Sales
INR 4.58bn (72.39m, 31 March 2008)
Employees
NA
Financial Overview During the financial year ended 31 March 2008, TVS
Srichakra recorded a growth of 10.05% in sales, achieving gross revenues of INR4.58bn (72.39m, 31 March 2008) compared to previous years figure to INR4.16bn (71.90m, 31 March 2007) in 2007. The company booked Profit Before Tax amounting to INR137.06m (2.17m, 31 March 2008) in 2008, compared to a figure of INR105.68m (1.83m, 31 March 2007) in the previous year. Profit After Tax improved by 36.5% to INR92.82m (1.47m, 31 March 2008) against INR68.02m (1.17m, 31 March 2007) in 2007. Export turnover showed an increase of 20% in 2007-08, with sales reaching INR900m (14.2m, 31 March 2008).
319
Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004
Gross sales, INR bn 4,581.94 4,163.41 2,931.59 1,987.40 2,303.34 Gross sales, m 72.39 71.90 54.59 35.18 43.03
Outlook TVS Srichakra has been successful in lowering its dependence on affiliate
TVS Motors, with improved shipments to Bajaj Motors and Hero Honda. The company has also made significant improvement in its aftermarket and export shipments as two wheeler registrations have been stagnating. 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.
320
Ucal Fuel Systems

Engine Management Systems
Address
Ucal Fuel Systems Limited Raheja Towers, Delta Wing-Unit-705, 177, Anna Salai, Chennai-600002 India
Ucal Fuel Systems is a part of the Ucal Group, one of India's largest manufactures of carburettors and mechanical fuel pumps for the domestic automotive industry. Ucal also supplies parts for fuel-injection systems. It primarily supplies to the domestic two-wheeler industry.
Incorporated in 1985 by Carburettors Limited, as a company with operations in the field of fuel management solutions. Subsequently Ucal tied up with Mikuni Corporation, Japan as a technical cum financial collaboration. Presently, Mikuni holds a 26% equity in the company while Carburettor Ltd holds 23% stake in Ucal. Ucal has a production capacity of 60,000 oil pumps and 0.35m fuel taps per month. With the implementation of stricter emission norms OEMs have phased out carburettors in case of four-wheelers. This has made a considerable shuffle in the business set up of Ucal. In recent years India has adopted stricter emission norms following which Ucal entered into production of MPFI hardware products such as throttle body, delivery pipe with pressure regulator and high pressure fuel filter. Ucal has also ventured into offshore markets lately. In 2003, the Company commenced production of electric throttle valve and allied products exclusively for the global market. Ucal has further diversified into oil pumps. Ucal further owns two subsidiaries: Ucal Polymer Industries Limited: Ucal Polymer was established for manufacturing rubber-bonded parts for automotive applications. The Company commenced production of rubber-bonded components, which are fitted into secondary air suction valves. 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, fuel injection systems, fuel pumps and several engine components. The company is also engaged in the design and manufacture of Special Purpose Machines, capable of machining complicated castings for various operations like drilling, boring, tapping and reaming. These machines are equipped with hydraulic, pneumatic and electrical PLC control systems. The company is also engaged in the manufacture of aluminium and zinc alloy die-casting components, fuel filters and critical sub-assembly parts of fourwheeler and two-wheeler carburettor components.
Tel: +91-44-28604795-98 Fax: +91-44-28604788 Internet: http://www.ucalfuel.com Senior Officers

S Muthukrishnan, Chairman K Jayakar, Vice Chairman and Managing Director Hiromi Iida, Joint Managing Director T Ravi, General Manager - Marketing
Products
BS carburettor, carburettor assembly, carburettor with coasting richer system, chain tensioners, electronic throttle body, electronic throttle valve, fuel filter, fuel pumps, fuel rail- delivery pipe & pressure regulator, intake manifold, in-tank electric fuel pump, in-tank fuel electric pump, mechanical fuel pumps, Multi Point Fuel Injection system component, oil pumps, secondary air suction valve, single barrel side draught carburettor, TH carburettor, throttle body, VM carburettor, fuel system components- transmission components, electronic sensor housings, ride control components, rocker assembly arm, air filter assembly, plastic moulded parts
Plants
India: Gurgaon (Haryana) (1), Pondicherry (1), Tamil Nadu (2) Ucal Fuel systems clientele include Bajaj Auto Limited., Birla Yamaha Limited., Hero Honda Motors Limited, Hero Motors, Honda Siel Power Products., Hyundai Motors India Limited, Kinetic Motor Company, LML Limited, Maruti Udyog Limited, Mikuni Corporation Japan, Royal Enfield, TVS Motor Company and Yamaha Motor India Limited.
Sales Recent Developments

Employees
c. 900 (2008)
Corporate strategy The phasing out of the carburetor due to emission norms has led to a strong change in Ucals business model. Carburettor sales are now restricted only to certain two wheelers and three wheelers. This has led to introduction of fuel injector systems and allied components. However, 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. This makes supplies to diesel programs of OEs which do not have Japanese roots difficult. The recent mandate in favor of Ucal, which makes it a principal vendor to the Suzuki Powertrain project, will help Ucal in re-establishing profitability in its businesses
321
which has been losing money with change in technology and the presence of global players in India. Ucal has been keen to leverage its strength in aluminum diecasting for making significant export initiatives. Acquisitions In June 2005, UFSL acquired 100% equity in Amtec Precision Products, USA making it a wholly owned subsidiary of UFSL. The company is using Amtec to diversify product base and use the marketing infrastructure of the company to improve offshore sales. Amtec manufactures fuel system components like transmission components, electronic sensor housings, ride control components, rocker assembly arm, air filter assembly, plastic moulded parts for the North American market. Joint-ventures Ucal shares a technical and financial collaboration with Mikuni Corporation, (Japan) for the production of fuel injection parts, sub systems, air suction valve and fuel pumps. Mikuni holds 26% equity in the company. In 2003, Ucal entered into collaboration with Orbital Inc. Australia for development of direct injection systems. In 2000, UPIL entered into a technical collaboration with Shoei Corporation (Japan) for making rubber parts for various applications. Under the arrangement the company manufactures rubber tip needle parts to be fitted in two-wheeler carburettors manufactured by Ucal. Investments In December 2007, Ucal announced the setting up of a greenfield unit at Bawal, Haryana for supplying to Suzuki Powertrain at its diesel engine unit at Manesar. Ucal is investing INR 360m (5.69m, 31 March 2008) The plant will supply 0.35m oil pump units and 0.25m manifolds per annum to Suzuki Powertrain. Contracts UFSL received a supply contract for carburettors from Paykan, Iran. UFSL started electronic throttle valve for the export market. UFSL supplies CD Carburettor for Bajaj Pulsar program. UFSL supplies MPFI parts to the Hyundai Santro program in India. Ucal has set up an additional line with test rigs for supply of oil pumps to the Mahindra Scorpio. The company is a secondary supplier of oil pumps to the production program with a 30% share in the business. The company has been exporting fuel pumps and other components to the USA through distributors and other partners.
Certifications
UFSL has been accredited with QS 9000 status.
Financial Overview In the financial year ended 31 March 2008, Ucal reported a 17.9% decrease in sales to INR5.81bn (91.93m, 31 March 2008) from INR7.08bn (122.36m, 31 March 2007) in 2007. Pre tax loss for the same period was at INR215.7m (3.41m, 31 March 2008), compared to a pre tax loss of INR343.47m (5.93m, 31 March 2007) in 2007. Ucal registered a net loss for the second year in a row with losses in the fiscal 2008 recorded at INR441.52m (6.98m, 31 March 2008).
Year 2008 2007 2006 2005 2004 Year 2008 Gross sales, INR m 5,818.57 7,085.19 3,047.83 3,181.80 3,041.21 Gross sales, m 91.93 Operating Profit, INR m 54.33 220.57 684.32 500.74 573.28 Operating Profit, m 0.86 Profit Before Tax, INR m -215.7 -343.47 494.44 361.57 439.25 Profit Before Tax, m -3.41 Net Profit, INR m -441.52 -244.51 377.01 257.61 439.25 Net Profit, m -6.98
322
2007 2006 2005 2004
122.36 56.75 56.32 56.81
3.81 12.74 8.86 10.71
-5.93 9.21 6.40 8.21
-4.22 7.02 4.56 8.21
Outlook Ucal had indicated its move towards the diesel injector systems market three years ago. In this timeframe global giants, Denso, 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. Ucals diesel injector supply capability will mostly be directed towards Suzuki and Nissan. 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.
323
Varroc group
Address
Varroc Engineering Pvt Ltd, E-4, MIDC, Waluj, Aurangabad, Maharashtra 431136, India
Varroc is a diversified automotive supplier with interests in plastics and rubber, and seats, electrical and engineering components. The company is a major supplier to Bajaj Auto. Varroc generates nearly 95% of its sales come from the automotive industry.
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, Videocon. The company rapidly diversified to become the leading processor of plastics with multi-location, multi-division operations, manufacturing plastic and rubber components, PU foam moulding, multi-layer plastic sheet extrusion, rubber and PVC 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), one in NOIDA (Uttar Pradesh) and two in Pune (Maharashtra). The facilities are run under group companies Varroc Engineering and Moldcraft Hindustan. Electrical division: has manufacturing set ups in four locations of which two are in Pune (Maharashtra) and two in Aurangabad (Maharashtra). The facilities come under group companies Varroc Engineering and Varroc lighting. Metallic division: Have four plants, three in Aurangabad (Maharashtra) and one in Pune (Maharashtra). The facilities come under group companies Varroc Engineering, Durovalves India and Varroc Exhaust Systems. Trading division: Varroc Group also has a trading division with offices in Aurangabad (Maharashtra) and New Delhi.
Tel: +91 240 2556227 Fax: +91 240 2564540 Internet: http://www.varrocengg.com Senior Officers
Naresh Chandra Jain, chairman Tarang Jain, Managing Director Ashok Chandak, Group Vice President Business Development SN Patil, Vice President (Operations) Polymer division MR Venkatraman, Vice President (Operations) Mettalic division Nagesh Nadig, Vice President- Finance PC Rajagopal, Vice President (Operations) Electrical Division
Products
AC generator, blinkers, CDI, cold forged components, crank pins, head lamps, engine valves, injection moulded plastic components, multiplayer sheet plastics extrusion, polyurethane foam seat assemblies, rear view mirrors, rectifier units, reed valve regulators, starter motor, tail lamp and wiper motors
Plants
India: Haryana, Maharashtra (14), Uttaranchal, Uttar Pradesh Global: Italy, 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. It produces a range of valves and crank pins with automotive applications. Moldcraft (Hindustan): was established in 1995 as a plastic injection molding and multi layer sheet extrusion facility Varroc engineering: has an interest in polymer, electrical and engineering businesses. Varroc Lighting: is classified under the electrical arm of the company. Varroc Trading: is the trading arm of the company. Varroc caters to 40% of Bajaj Autos lighting systems requirements. The company generates 55% of its sales from Bajaj Auto and 25% from passenger car OEMs. Varrocs OE clientele include Bajaj Auto, Fiat India, General Motors North America, Honda Motorcycle & Scooter India, LML, Maharashtra Scooter, Mahindra & Mahindra, Royal Enfield Motors, Tata Motors, and Yamaha Motors India. Among Indian suppliers, Varrocs customers consist of Delphi India, Endurance Systems, Gabriel, Lear Seating, Lombardini, Tata Ficosa Automotive Systems, Tata Johnson Controls Automotive, Tata Toyo Radiator, Mahle India Filter Systems. The international OEMs include Lombardini (Italy), Peugeot (France), Piaggio (Italy) and Scarpa & Colombo srl (Italy).
Sales
INR 20bn (317.6m, 31 March 2008)
Employees
c. 3,000 (2008)
Recent Developments
Corporate strategy In the recent years, Varroc has entered the electrical and
324
lightings business. Also, it has entered the automotive mirrors, crank pins and cold and warm forged components area. The group derives 50% of its automotive sales from plastics and nearly 33% from electrical operations. Varroc aims to restructure its business mix to a ratio of 33:33:33 between its polymer, electrical and engineering businesses. While exports contribute 5% to Varrocs revenues, total sales from global facilities and exports accounted for 25%. Varroc is now working on a two pronged strategy, where it would continue to supply its full range of products to the two wheeler industry, while it would selectively focus on interior and exterior plastics and forgings, particularly engine valves, for the passenger car segment. Varroc targets sales of INR40bn (635.20m, 31 March 2008) for FY 2011 of which 33% would be generated from off-shore sales. The company also targets to export 15% of its domestic supplies by value. Varroc has listed engine valves (metallics) and polymers as top growth areas and is investing to build capacity in both streams. Varroc aims to be a global player in the engine valve segment through organic and inorganic route. 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. Varroc is sceptical about export prospects of its polymers business largely due logistics costs and is therefore expanding its presence in the domestic market. The company is a strong player in the polymer interiors segment and now focuses on exteriors. Acquisitions In Varroc acquired Italy based hot forging manufacturer Imes Spa with an annual installed capacity of 110,000 tonnes of forged parts. The deal includes two forging units one each in Italy and Poland. The Polish plant had a high unused capacity which Varroc expects to leverage for its metallic division as a local supply base in Europe. Joint-ventures In January 2008, Varroc entered into a joint-venture with Plastic Omnium for manufacturing automotive exterior parts for the Indian market. The alliance will concentrate on design, development and production of bumpers, bumper modules, claddings, rocker panels, finishers, structural parts (beams, crash cladding for front and rear), front end carriers, painted body panels (including tailgates panels) and wheel arch housing. In July 2005, Varroc entered into a technical alliance with Delphi, to manufacture motorcycle catalyst for domestic consumption under the name Varroc Exhaust Systems. A greenfield facility was set up in Pune in 2006 with initial supply orders from Bajaj Auto. The company has expressed desire to export the products to Europe at a later stage however no concrete decision has been taken. The company generated sales worth INR 700m ( 12.09m, 31 March 2007). Varroc has entered into a joint-venture with Hyot. The JV designs interior and exterior products for OEMs. In 2001, Varroc Lighting Pvt. Ltd. was established in collaboration with E.C.I.E. Italy for automotive lightings supply. In 1998, Durovalves India was formed as a joint-venture between the Scarpa and Colombo srl, Italy and Varroc to manufacture engine valves for 4-stroke two-wheeler engines. Also in 1998, with technical support from Mitsuba Corporation, Japan and Shindengen Electric Mfg. Co. Ltd. Japan, Varroc diversified into auto electrical Ignition systems for manufacturing AC generators, CDI, regulators, regulator rectifier units, starter motors and wiper motors. Varroc shares an alliance with Mollertech SAS, France for injection moulded interior trims, modules and consoles. Investments In 2007, Varroc invested INR 1bn ( 17.27m, 31 March 2007) to scale up its existing operations across all verticals. In 2008, Varroc plans to invest INR 1.40bn ( 24.18m, 31 March 2007) to expand its metallic division. In 2005, Varroc opened an injection moulding plant at Gurgaon. In 2004, Varroc opened an injection moulding plant for engineering
325
plastics in Rajangaon (Pune) to meet the requirements of Mahindra & Mahindra. In 2003, Varroc commissioned a PU based painting line for automotive plastics component at Pune. In 2003, Durovalves began producing crankpins and cold and warm forged products. Most of the goods produced are used to meet the requirements of Bajaj.
Contracts In 2007, Varroc commenced supplies of electronic instrument clusters, indicators, tail lamps and headlamps to the Bajaj XCD program. In 2006, Varroc commenced supplies of electronic instrument clusters, indicators, tail lamps and headlamps to the Bajaj Platina program. Varroc supplies electronic electronic instrument clusters, indicators, tail lamps and headlamps to the Bajaj Pulsar program. Certifications Polymer Division: Two Aurangabad based facilities are ISO TS 16949:2002 certified, another Aurangabad based facility is ISO 9001-2000 accredited and another set up in Pune is QS 9000-1998 certified. Electrical division: Two Aurangabad based facilities are ISO 9001-2000 certified. Metallic division: One plant in Aurangabad is QS 9000:1998 accredited.
Financial Overview In the financial year ended 31 March 2008, Varroc group generated sales worth INR 20bn (317.6m, 31 March 2008). Varroc Group is a privately owned and does not publish financial statements. Outlook Varroc has an aggressive growth strategy to leverage the current
opportunities in the automotive sector. Exports, especially in the valves segment, is has promising prospects for the company with strong demand for outsourcing. The increased focus on forging and polymer businesses will help Varroc achieve greater sales from passenger car OEM.
326
Victor Gaskets
Gaskets
Address
Victor Gaskets Limited, 152/223, Village Mahalunge Chakan-Talegaon Road Tal. Khed Dist. Pune 410 501 Maharashtra, India
Part of the Anand Automotive Group, Victor Gaskets is a major player in the Indian automotive gaskets market. The company operates from a single manufacturing facility in the Western cluster close to Pune.
Victor Gaskets was setup as a joint-venture with Dana Corporation but now operates as an Anand Group company. It is the third largest operator in the automotive gasket market with a 16% market share. The company has developed in-house competence for developing non-asbestos gaskets for automotive and nonautomotive applications. Additionally the company has a product validation centre at Nashik. Victor Gaskets domestic client base includes, Ashok Leyland, Avtec India, Cummins India, Ford India, General Motors, Greaves India, Hero Motors, Hindustan Motors, Hindustan PowerPlus Caterpillar, Lombardini India, Mahindra & Mahindra Automotive Division and Farm Division, Maruti, MICO Bosch, Simpson & Company, Tata Motors and Toyota Kirloskar Motors. Victor Gaskets international customers includes, Audi Slovakia, Iveco- Italy, Lister Petter UK, TVS, Victor Reinz Dana USA and VW.
Tel: + 91 2135 3269 37-38 Fax: + 91 2135 2591 59 Internet:

http://www.victorgasketsindia.com
Senior Officers
C S Patel, Chairman M S Shankar, Chief Operating Officer
Products
Cylinder head gaskets, exhaust gaskets, inlet manifold gaskets, oil pan gaskets, secondary gaskets, timing gear gaskets, valve cover gaskets
Recent Developments
Corporate strategy Victor Gaskets estimates a three fold increase in sales from the present INR390m (6.16m, 31 March 2008) with influx of several engine manufacturers and OEMs in the vicinity of its production unit. The company is also eyeing export business worth INR 1.2bn (18.96m, 31 March 2008) as a part of its growth strategy with increase in global purchase activity. Export orders are expected to materialise in a period of two years. Victor Gaskets believes that it has proven capability to supply to new entrants based on its success with present clientele, where it has been delivering on a zero ppm basis. Victor Gaskets is also working on a strategic alliance for upgrading its technical competence especially for new materials, a key requirement for winning business with new entrants which may otherwise choose to bring along existing sourcing partners. The company is expanding its scope of presence by including heat shields into its portfolio. Joint-ventures Victor Gaskets shares a technical alliance with Dana Corporation for nonasbestos gaskets. Victor Gaskets also shares a technical alliance with Hamamastu Gasket Corporation, Japan for developing coatings of fluroelastomer on stainless steel. Certification Victor Gaskets is accredited with QS 9000, TS 16949 & ISO 9002 status. 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. INR390m (6.16m, 31 March 2008) (Year to 31.03.2008)
Employees
c.150 (31 March 2008)
327
Antistick Coating - Silicone, Teflon, Aluminum, MoS2 Tool & Die Maintenance Tool Room

In 2006, Victor Gaskets developed three Multi Layer Steel Head Gaskets for single cylinder and four cylinder applications. Also in 2006, Victor Gaskets independently developed elastomers on metal carriers for cylinder head gaskets with firing pressure 240 bar.
Financial Overview During the financial year ended 31 March 2008, Victor Gaskets registered an 8.3% increase in sales with total sales of INR390m (6.16m, 31 March 2008) in 2008 compared to sales of INR360.7m (6.23m, 31 March 2007) in 2007. Victor
Gaskets does not publish its financial statements.
Outlook Victor Gasket has set out an ambitious target for itself in a market with
increasing opportunities and increasing competition from new entrants. 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. Most new OEM entrants are setting up assembly units close to Victors present unit giving it start-off advantage, though it remains to be seen if these OEMs would bring along their international partners to the country.
328
Wheels India
Wheels
Address
Wheels India Limited, 21 Patullos Road, Chennai- 600 002, India
Wheels India is the largest manufacturer of automobile wheel rims in India with market share of 66%. The company is the only domestic company which has a presence in all vehicle segments i.e. commercial vehicles, cars, MUVs and tractors, and the replacement market. The company also manufactures air suspension kits for buses.
Wheels India was established in 1960 by TVS & Sons, Sundaram Finance, Southern Roadways and Dunlop Holding UK. In 1999, Titan Europe Plc. acquired Dunlop's share in Wheels India. Now, TVS Groups holds 49.7% and Titan 39.5% in the company. Wheels India has four production plants and employs around 1,600 people. Wheels India has a significant presence in the domestic market with 66% market share. It has a commanding 78% market share in the commercial vehicle sector and enjoys near monopoly in tractor wheels market in India. The main domestic customers of the company include Ashok Leyland, Ford India, Honda Siel, Hyundai Motors, Tata Motors and Maruti Udyog. The company is a sole supplier to Ashok Leyland and meets 60% of requirement of Tata Motors. In the export market, it supplies Caterpillar and Daewoo Heavy Industries. It exports about 15% of its total sales. In 2004, commercial vehicles accounted for 35% of total sales, followed by tractors and passenger cars at 20% each.
Tel: +91 44 2852 2745 Fax: +91 44 26257121 Internet: http://www.wheelsindia.com Senior Officers
S Ram, Managing Director Srivats Ram, Joint Managing Director S Srivathsan, Vice President- Finance
Products
Air suspension, wheels, wire wheels
Plants
Haryana, Maharashtra, Tamil Nadu, Uttar Pradesh
Recent Developments Sales

INR 11.3bn (179.48m, 31 March 2008) Corporate strategy Wheels Indias 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. Wheels India continues to focus on its strategy of holding on to its established customer base. The company has expanded its production capacity and reduced transportation costs by building a new plant close to Maruti, which is the key customer. Acquisitions In 2002, Wheels India acquired Amforges tractor wheel facility for INR120m (2.8m, 31 March 2002). This acquisition has enabled Wheels India to gain near monopoly position in tractor wheels in the domestic wheels market. Joint-ventures Wheels India receives technical and financial assistance from Titan Europe the leading manufacturer for agricultural and construction wheels. Wheels India has a technical alliance with Dunlop, UK (now Trelleborg) for its air-suspension venture, Neuride. Investments In August 2004, Wheels India announced a new facility in Gurgaon (Haryana) to manufacture wheels for passenger cars. The plant caters to the requirement of Maruti Udyog. The company invested around INR150m (2.7m, 31 August 2004) in the plant which has a production capacity of 1.25 millions wheels. Contracts Wheels India is the sole supplier to Ashok Leyland. Wheels India supplies wheel rims to Ford India, Honda Siel, Hyundai Motors, Tata Motors and Maruti Udyog. Certification
Employees
c. 1,600 ( 31 March 2008)
329
Wheels India is accredited with TS 16949:2002 certification. 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.
Financial Overview During the financial year ended 31 March 2008, Wheels India generated sales worth INR 11.3bn (179.48m, 31 March 2008) compared to sales worth INR 10.03bn ( 173.26m, 31 March 2007) in 2007, a growth of 12.65%. Profit Before Tax grew by 2.71% to reach a figure of INR 397.4m (6.31m, 31 March 2008). Net Profit for the fiscal 2008 was at INR 258.6m ( 4.11m, 31 March 2008) compared to a figure of INR 260.3m ( 4.5m, 31 March 2007) in 2007. The momentum in exports was particularly strong in case of earthmover wheels and tubeless truck wheels.
Year 2008 2007 2006 2005 2004 Year 2008 2007 2006 2005 2004 Gross sales, INR bn 11.3 10.03 NA 7.9 5.3 Gross sales, m 179.48 173.26 NA 139.99 99.16 Operating Profit, INR m 1017 859.3 NA Profit Before Tax, INR m 397.4 386.9 NA 427.9 332.8 Profit Before Tax, m 6.31 6.68 NA 7.57 6.22 Net Profit, INR m 258.6 260.3 NA 286.5 215.4 Net Profit, m 4.11 4.50 NA 5.07 4.02
Operating Profit, m 16.15 14.84 NA 0.00 0.00
Outlook Wheels India is the market leader in almost all segments and has therefore grown with the increase in domestic vehicles sales. This gives Wheels India a well diversified customer base. Wheels Indias rivals have closed the lead by significantly scaling up their capacity and cornering a part of the growing market. 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.
330
ZF Steering Gear India

Mechanical and power steering gears
Address
ZF Steering Gear India Ltd Eden Hall, 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.
ZFSGIL came into being in 1981 as a three-way joint venture between Zahnradfabrik Friedrichshafen AG (ZF AG), the Firodias of Force Motors and the Munot family as a mechanical steering gear and hydraulic power steering gear manufacturer. ZF AG chipped in with the technical know-how and helped the company setup manufacturing operations. A decade later the company supplied the erstwhile TELCO with power steering gears for its LCVs. Subsequently, ZFSGIL developed and designed the power steering for Tata 207 range of vehicles. The company went in for an expansion in 1993 installing capacity for 75,000 units of mechanical steering gears and 3,600 power steering gears per annum. However the bubble in the CV sector went bust and the buyers remained bearish about the power steering systems leading to over capacity. Ever since the company has consolidated and streamlined operations. ZFSGIL has a strong presence in the commercial vehicles segment with all major OEMs in its kitty, Ashok Leyland, Force Motors, Eicher Motors, Eicher Tractors (now TAFE), International Tractors, Mahindra & Mahindra, Punjab Tractors, Swaraj Mazda, Tata Motors and Volvo India. ZF India also supplies to JAC-Egypt, TAC-Egypt, PT Wahana- Indonesia.
Tel: +91 020 25663271-74 Fax: +91 020 25663275 Internet: http://www.zfindia.com Senior Officers
AH Firodia, Chairman Dinesh Munot, Managing Director Jitendra Munot, Joint Managing Director Piyush Munot, Manager - 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. ZFs case was further bolstered by a sharp increase in demand for commercial vehicles, however with the ongoing financial slump; ZF India is now facing margin pressures coupled with slower demand. While OEMs have been selectively pruning orders amongst vendors, commercial vehicle registration numbers reflect a 15-25% drop in demand year on year. Over the last three years, Ashok Leyland, one of ZFs principal customers has been importing its requirement of steering gears on select programs from China based suppliers. And to make times tougher, at least two players have been working on their plans to enter the commercial vehicle segment for steering gears. In its counter approach, ZF has been eyeing passenger cars. In this regard the company has already entered an agreement with ZF Germany and ZF Shanghai. The company has managed to indigenize certain key components which it claims shall help beat margin pressures. The company has achieved some success in bringing down its forex outgo. These measures have helped ZF in maintaining the profitability of its operations. Joint-ventures ZFSGIL has a technical alliance with ZF Germany. Investments In 2004, ZFSGIL acquired certain machines from its collaborators ZF GmbH. The move shall help the company cut down its import bill as well as ease pressure on margins. In 2004, ZFSGIL announced an expansion program worth INR600m ( 10.62m, 31 March 2005) for doubling its power steering capacity to 120,000 units per annum. The company is also hiking the output of mechanical gears to 150,000 units per year.
Sales
Employees
c. 700 (31 March 2008)
331
Contracts Currently ZFSGIL is working on new programs being conducted by some of its existing clients like Tata Motors for the World Truck platform, Force Motors for the MAN trucks and Ashok Leyland for the Newgen series. ZFSGIL supplies mechanical steering gear for Force Motors Matador, Minidor, Traveller and Trax Phase 1.5. Besides the company also supplies mechanical steering gears to certain tractor manufacturers. Also, ZFSGIL supplies power steering gear to truck and bus manufacturers like Ashok Leyland for its 2214, 2516 Taurus, Special Viking, Viking Super, Cheetah, Hippo dumper, ALRD20 dumper; Autorola for its buses; Eicher Motors for its Canter 10.9 and school bus; Swaraj Mazda for the T1100 and the Minibus,; Tata Motors for its LPT 4021TC, LPT 3516 TC, LPT 2516 TC, LPT 1512 TC, LPT 1510 TC, LP 1510 TC, 1109TC, 609, 407, Sumo Diesel, Safari and the Sierra; Volvo India for the FH12.
New Product Developments ZFSGIL is preparing to enter the passenger car

segment with technical back-up from ZF China and ZF India.
Financial Overview
ZF India's net sales for the year ended 31 March 2008 was reported at INR2.23bn (35.17m, 31 March 2008), an increase of 2.8% compared to INR2.17bn (37.40m, 31 March 2007) in 2007. Profit before tax stood at INR398.86m (6.30m, 31 March 2008), a decrease of 2.8% compared to INR410.41m (7.09m, 31 March 2007) in 2007. Net profit increased by 1.06% to INR278.53m (4.40m, 31 March 2008) over INR275.59m (4.76m, 31 March 2007) the previous year. Year Gross sales, INR bn 2,225.91 2,165.66 1,916.95 1,752.24 1,250.00 Operating profit, INR m 503.60 507.83 432.70 400.88 253.62 Profit before tax, INR m 398.86 410.41 332.80 310.84 201.81 Net Profit, INR m 278.53 275.59 226.03 204.95 107.30
2008 2007 2006 2005 2004 *Net sales Year 2008 2007 2006 2005 2004 *Net sales
Gross sales, m 35.17 37.40 35.69 31.01 23.35*
Net Profit, m 4.40 4.76 4.21 3.63 2.00
Outlook Input cost hikes coupled with a slackening demand have sandwiched the
financial legroom a supplier like ZF would have enjoyed in better times. Adding to the companys woes are changes in the sourcing pattern with and increase imports in its product segment.
332

ISR Revised Final

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ISR Revised Final

Uploaded by

Copyright:

Available Formats

THE INDIAN SUPPLIER REPORT

Published by SupplierBusiness Ltd, An IHS Global Insight Company

The Indian Supplier Report

Chapter 2: Indian Market Outlook and Forecast ...................................................................... 16

Chapter 3: Indian Auto Industry ................................................................................................. 26

Chapter 4: Government and Policies ........................................................................................ 35

Introduction .................................................................................................................................. 36 Taxation ....................................................................................................................................... 36

4.3 4.4 4.5

Chapter 5: Evolution of the Indian Supplier Industry .............................................................. 41

SupplierBusiness Ltd 2009

The Indian Supplier Report

5.3 5.4 5.5 5.6 5.7 5.8

Chapter 6: Challenges facing Indian suppliers ........................................................................ 57

Chapter 7: India OEMs and their product plans ....................................................................... 67

Chapter 8: Company Profiles ..................................................................................................... 72

SupplierBusiness Ltd 2009

The Indian Supplier Report

SupplierBusiness Ltd 2009

The Indian Supplier Report

SupplierBusiness Ltd 2009

The Indian Supplier Report

SupplierBusiness Ltd 2009

The Indian Supplier Report

SupplierBusiness Ltd 2009

The Indian Supplier Report

SupplierBusiness Ltd 2009

The Indian Supplier Report

Chapter 1: India: An Introduction

SupplierBusiness Ltd 2009

The Indian Supplier Report

A Large Market Growing Steadily

Fig 1.1: GDP Growth and Inflation (2001-02 to 2007-08)

SupplierBusiness Ltd 2009

The Indian Supplier Report

Business Climate, Financial Markets and External Sector

SupplierBusiness Ltd 2009

The Indian Supplier Report

Fig 1.2: Foreign Exchange Reserves

English-Speaking Workpool and the Demographic Dividend

Table 1.1: Labour Force

SupplierBusiness Ltd 2009

The Indian Supplier Report

Low Cost Sourcing Country Contract Manufacturing, Research, Design

Infrastructure Roads Getting Top Priority

SupplierBusiness Ltd 2009

The Indian Supplier Report

SupplierBusiness Ltd 2009

The Indian Supplier Report

Chapter 2: Indian Market Outlook and Forecast

SupplierBusiness Ltd 2009

The Indian Supplier Report

India survives the slowdown of 2009

SupplierBusiness Ltd 2009

The Indian Supplier Report

Steady growth over the next decade

Light Vehicle Sales 2005-15

Data Source: IHS Global Insight

SupplierBusiness Ltd 2009

The Indian Supplier Report

Total vehicle production to double in 10 years

Passenger car market will remain small car centric

SupplierBusiness Ltd 2009

The Indian Supplier Report

0 2004 LOW COST CAR SANTRO WAGON R NANO