INDUSTRY PROFILE

India is the second-biggest market for small cars after Japan. It account for 60%
of the domestic market. The history of automobile industry in India actually began about
4,000 years ago when the first wheel was used for transportation. In the early 15th
century, the Portuguese arrived in china and the interaction of the two cultures led to a
variety of new technologies, including the creation of a wheel that turned under its own
power. By the 1600s, small steam- powered engine models were developed, but it was
another century before full-sized engine-powered automobile was created.

India’s transport network is developing at a fast pace and the automobile industry
is growing too. The automobile industry also provides employments to a large section of
the population. Thus the role of automobile industry cannot be overlooked in Indian
economy. It includes the manufacture of trucks, buses, passenger cars, defense vehicles,
two wheelers etc. the industry can be broadly classified into the car manufacturing, two
wheeler manufacturing and heavy vehicle- manufacturing units. The major car
manufactures in India are Hindustan motors, Maruti Udyog, Fiat India private limited,
Ford India ltd, General motors India pvt. Ltd.

FACTS & FIGURES

It seems that India has finally arrived in the big league of Asian car markets. Steady
and impressive annual growth rate, presence of international auto makers, relaxation of
auto exchange and equity regulations, reduction of tariffs on imports and few others are
the components of its booming auto market. The country has now come to be recognized
as a potential emerging auto market.

Recent study says that by 2010 India will take over Germany in sales volume and
Japan by 2012, India will by every sixth car products in the world. Apart from serving the
domestic market, the auto sector has turned as a sourcing base for the global auto majors.
The auto components market is also in its full swing. As per the research The Indian
automobile components industry is estimated to triple from USD 63 billion to USD 190
billion within a span of six year by 2012.
 Total turnover of the Indian automobile industry is expected to grow from USD
34 Billion IN 2006 TO USD 122 billion in 2016.Suzuki Motor Corp, Hyundai Motor Co,
and Nissan Motor co are making India a manufacturing hub of minicars.

The automobile industry designs, develops, manufactures, markets, and sell the
world’s motor vehicles. In 2008, more than 70 million motor vehicles, including cars and
commercial vehicles were produced worldwide. Of the major markets, Russia, brazil,
India and china saw the most rapid growth.

HISTORY

An embryonic automobile industry emerged in India in the 1940s. Following the

independence, in 1953, the government of India and the private sector launched efforts to
create an automotive component manufacturing industry to supply to the automobile
industry. However, the growth was relatively slow in the 1950s and 1960s due to
nationalization and the license raj which hampered the Indian private sector. After 1970s,
the automotive industry started to grow, but the growth was mainly driven by tractors,
commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers
entered the Indian market ultimately leading to the establishment of Maruti Udyog. A
number of firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint ventures for

building motorcycles and light commercial vehicles. It was at this time that the Indian
government chose Suzuki for its joint venture to manufacture small cars. Following the
economic liberalization in 1991 and the gradual weakening of the license raj, a number of
Indian and multi national cars companies launched operations. Since then, automotive
component and automobile manufacturing growth has accelerated to meet domestic and
export demands.

AUTOMOTIVE INDUSTRY CRISIS OF 2008-2009

The automotive industry crisis of 2008-2009 was a part of a global financial

downturn. The crisis affected European and Asian automobile manufacturers, but it was
primarily felt in the American automobile manufacturing industry.
 The automotive industry was weakened by a substantial increase in the prices of
automobile fuels linked to the 2003-2008 energy crisis which discouraged purchases of
automobiles. The popularity and relatively high profit margins of these vehicles had
encouraged the American “Big Three” automakers, General Motors, Ford, and Chrysler
to make them their primary focus. With few fuel-efficient models to offer to consumers,
sales began to slide. By 2008, the situation had turned critical as the credit crunch placed
pressure on the prices of raw materials.

OVERVIEW

Overview the passenger car market in the country was inching towards cars with
higher displacements. The sport utility vehicle (SUV) that was getting crowded everyday
would witness intense competition as many SUV’s had been competitively priced.

Honda, Suzuki, general motors and Hyundai the global automakers had already
launched their premium SUV’s in the market to broaden their portfolio and create
product excitements in the segment estimated about 10,000 units annually.

In 2008, Hyundai motors alone exported 240,000 cars made in India. Nissan motors
plans to export 250,000 vehicles manufactured in India by 2011. Similarly, general
motors announced its plans to export about 50,000 cars manufactured in India by
2011.According to Bloomberg L.P., in 2009 India surpassed China as Asia’s fourth
largest exporter of cars.
 COMPANY PROFILE

Dynamatic Technologies Limited produces highly engineered products for the following
applications:

• Automotive Sector
• Aerospace Sector
• Agricultural Equipment Industry
• Construction Equipment Industry

JKM Automotive™, a division of Dynamatic Technologies Limited, produces high

quality ferrous and non-ferrous critical engine and transmission components for the
burgeoning global automobile industry. Located in Chennai, the automotive hub of India,
JKM Automotive™ is single source to Global Automotive OEMs for critical engine and
transmission components in three product segments: highway, off highway and
technology.

JKM Automotive™ has registered stellar growth over the past decade, evolving from a
green field venture into a dominant force in the Indian Auto Component Industry. The
Division caters to over 40% of the Indian passenger car market including the Hyundai
cars - Santro and Accent. JKM Automotive™’s association with internationally
renowned, progressive automotive OEMs keeps it constantly geared to anticipate and
fulfill the challenges posed by the global automobile industry.

DYNAMETAL®, a division of Dynamatic Technologies, produces high quality Non-

Ferrous Alloy and Castings for Industrial, Automotive and Aerospace Applications. This
foundry is located in Chennai.
DYNAMETAL®, incorporates use of the latest metallurgical processes and differs
radically from other conventional foundries as its heat treatment processes are designed
to ensure castings are made with no inclusions, minimal melting loss and with the
effective removal of gas from the metal. To achieve raw castings of high quality,
DYNAMETAL® uses sophisticated machinery like tiltable gravity die casting machines,
holding furnaces, impregnation plant, core shooters, sand core making facilities, leak
testing machines and shot blasting machines. The division is capable of executing
Aluminum Gravity Die Cast parts with intricate contours.

Dynamatic® is the market leader in the field of hydraulics. Dynamatic® products

literally reach every conceivable hydraulic user in India, enjoy very high brand
recognition and a large market share.

Dynamatic® is an ISO 9001(2000 ver) company and its management systems adhere to
international quality standards. The Company has a state-of-the-art production facility in
Bangalore, Karnataka, which ably employs cutting edge technologies and highly
sophisticated machinery to deliver premium quality. This facility is well equipped with
excellent CNC machines and sophisticated quality control laboratories. The production
process is designed to optimise time, efficiency and productivity while eliminating the
non-value adding process. Total mechanisation of the production process as well as the
expertise of the personnel manning the machines ensures consistency in quality.

Dynamatic® has once of the most extensive marketing networks for hydraulic products
in India, with 16 branches and scores of distributors and stockists spread across the length
and breadth of the country'.

We provide custom tailored solutions for customers. Our products range from simple
Hydraulic Pumping Units to sophisticated Marine Power Packs, complex Aircraft Ground
Support Systems to turnkey Industrial Installations.
DYNAMATIC AEROSPACE®, a division of Dynamatic Technologies Ltd., a division
of Dynamatic Technologies Ltd, is a pioneer and a recognised leader in the Indian Private
Sector for the development of complex aerostructures. Instituted in 1995, this division is
currently headed by Air Cmde. (Retd.) Ravish Malhotra, one of India's two cosmonauts.

Dynamatic Aerospace® has closely partnered Agencies of national importance like

Ministry of Defense, Hindustan Aeronautics Limited, and other defence establishments
on key projects including the Lakshya, India's Pilotless Target Aircraft, HJT-36
Intermediate Jet Trainer and Sukhoi MKI 30 Fighter Bomber. Products include the Wing
and Rear Fuselage of the LAKSHYA, Ailerons Flaps for the wings for the HJT-36 and
Fins, Ventral Fins, Slats, Vertical & Horizontal Stabiliser, Canards and Air Brakes for
the Sukhoi 30 MKI fighter bomber.

• Dynamatic Aerospace® is considered to be one of the most reliable quality

vendors to the DRDO and was presented with the 'Creative Partner' Award for the
year 1998-99 by DRDO, ADE and ASIEO. The Aircraft Division of HAL in
Bangalore also presented this division with the 'HAL Best Vendor Award' for
2002-03.
• Dynamatic Aerospace® has the largest infrastructure in the Indian Private sector
for manufacture of exacting Air Frame Structures and Precision Aerospace
Components. This is the first time such capabilities have been built in the Indian
Private sector. The Division is now consolidating its position through
collaborations with International Aerospace majors on exports initiatives.

Dynamatic® has transformed itself into a knowledge-based organisation through its

sustained R&D efforts. Dynamatic® undertakes Research & Development at its state-of-
the-art Center as well as through Powermetric™, its CAD/CAM engineering services and
training division
The Research & Development center at Dynamatic Park is completely electronic, and
utilises Parametric 3D Design programs and knowledge based expert systems. Recently,
Dynamatic® implemented a Collaborative Product Commerce (CPC) program
incorporating the sophisticated CPC software 'Windchill®', which helps in integrating
enterprise wide, product life-cycle management systems to enable development of rapid
time-to-market product designs.

In 2001, Dynamatic® was awarded the status of ' Recognised In-house R&D Unit', by the
Department of Scientific and Industrial Research (DSIR), Government of India.

Given our broad business focus, there is enormous bandwidth of knowledge available
within the Company. Using this knowledge, Dynamatic® has made tremendous
achievements in product development by creating various new products and has executed
R&D services for many internationally reputed customers like General Electric, Volvo
Renault, John Deere, Same Deutz-Fahr and New Holland; as well as for critical national
establishments such as, HVF, CVRDE and the Indian Air Force.

To leverage on its distribution strengths, Dynamatic® has entered into marketing tie-ups
with ATOS spa, Italy, and Walvoil spa, Italy, for the national level distribution of the
ATOS range of electro-hydraulic products, the Walvoil range of mobile control valves
and Oleostar cartridge valves

MILESTONES:

 Company established - Aug 1997.

 Start of Production – Oct 1998.

 Certification to QS 9000 – May 2001.

 Major expansion of Plant 1 – 2001/2002.

 Start of export Business – June 2003.

  Major expansion of Plant 1 – 2003/2004.

 100 PPM certified by HMIL – Oct 2004.

 Certification to TS 16949 – Feb 2005.

 Inauguration of Plant 2 – Sep 2007.

 Certification to ISO 14000 &

OHSAS 18000 – Dec 2007.

 Certified to FORD Q1 – Apr 2008.

CUSTOMER PROFILE:

Domestic

• HYUNDAI

• TATA

• MAHINDRA

• FIAT

• GM

Export

 FORD

 CUMMINS

 JOHN DEERE

 HONEYWELL GARRETT

SUPPLIER PROFILE:

Castings
 • ASWINI

• FLOW WELL CASTING

• EXCEL DIE CASTING

• PONDY DIE CASTING

• SURIYA ENTERPRISES

Subparts

 INDO SCHOTTLE AUTO OARTS

 ICMPL

 SELVAMBIGAI ENTERPRISES

 SS FABCOM

PRODUCT PROFILE:

Product profile – i10

 Case Assy front (Oil pump)

 Pump Assy water (Water pump)

 Manifold Assy Inlet

 Manifold Assy Exhaust

 Fork Shift 1,2

 Fork Shift 3,4

  Fork Shift 5,R

 Rocker Arm ‘A’

 Rocker Arm ‘B’

 Cam cap thrust

 Cover Rocker

 Case oil seal Assy.

Product profile – ACCENT & GETZ:

 Case Assy front (Oil pump)

 Pump Assy water (Water pump)

 Manifold Assy Inlet

 Manifold Assy Exhaust

 Fork Shift 1,2

 Fork Shift 3,4

 Fork Shift 5,R

 Cam cap Shaft Bearing 1

 Cam cap Shaft Bearing 2

 Cam cap Shaft Bearing 3

 Cam cap Shaft Bearing 4

 Cam cap Shaft Bearing 5

 Manifold Assy Inlet – Getz.

Product profile – SANTRO:

• ase Assy front (Oil pump)

• Pump Assy water (Water pump)

• Manifold Assy Inlet

• Manifold Assy Exhaust

• Fork Shift 1,2

• Fork Shift 3,4

• Fork Shift 5,R

• Rocker Arm ‘A’

• Rocker Arm ‘B’

• Cam cap thrust

• Pulley – water pump

• Cover Rocker

• Case oil seal Assy.