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Auto Component Industry in India: Growing Capabilities & Strengths.

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Presentation on theme: "Auto Component Industry in India: Growing Capabilities & Strengths."— Presentation transcript:

1 Auto Component Industry in India: Growing Capabilities & Strengths

2 India: A Growing Economy Automotive Industry in India Auto Component Industry in India ACMA Korea In India Capabilities & Challenges The Way Forward Delegation Details Agenda 2

3 India: A Growing Economy 3

4 1. Largest Democracy – 1.2 billion people, Growing Middle Class th largest GDP (PPP) and 10 th largest GDP (Nominal, USD 1.8 trillion) 3. One of the fastest growing economies - Estimates for : ~6% Indias average GDP growth rate: 8.4% over past 5 years Expected to outpace China in the next decade rd Largest Investor base in the World 5. Robust Legal and Banking Infrastructure 6. Demographics Advantage – Youth driven economy India: A Vibrant Economy 4

5 Automotive Industry in India 5

6 Rapidly growing presence of Global OEMs - Passenger Car (Illustrative List) 6

7 Passenger Vehicles Production 7 (000 units) Figures for financial year – April to March (* Estimates) CAGR : 15% CAGR : 13%* * *

8 Other Vehicles Production Figures for financial year – April to March (* Estimates) 8 Two & Three Wheelers Commercial Vehicles include: Small Commercial Vehicles (SCV) < 1 ton Light Commercial Vehicles (LCV) > 1 ton but < 7.5 tons Medium Commercial Vehicles (MCV)> 7.5 tons but <16 tons Heavy Commercial Vehicles (HCV) > 16 tons Construction Vehicles CAGR : 14%* CAGR : 19% CAGR : 14%* * * * * CAGR : 15% CAGR : 6%* CAGR : 17% CAGR : 8%* * * * * Commercial Vehicles Tractors ( 000 units)

9 Auto Component Industry in India 9

10 Auto Component Industry Profile - Turnover Comprehensive Product Range 10 USD billion (* Estimates) * * CAGR : 12% CAGR : 14%* Figures for financial year – April to March *

11 Auto Component Industry Profile - Exports USD billion Export Destinations OEM/Tier 1 account for 80%; Aftermarket for 20% (* Estimates) * * 11 CAGR : 22% CAGR : 16%* Figures for financial year – April to March *

12 12 ACMA: Strengthening linkages with Indian Automotive Industry

13 About ACMA Established in 1959 Apex body of Auto Component Industry in India 675+ members from the Organized sector Represents 85% of the Industry by turnover Represented on all Government and Industry bodies – Strategic to the Auto Sector Offices across all Regions in the Country An ISO Institution ACMA – Excellence in Service Delivery 13

14 ACMA Services 14 Promotes Indian Automotive Component Industry Trade Promotion Technology Up-gradation Quality Enhancement Collection &Dissemination of Information Vital Catalyst for Industrial Development

15 Indian Suppliers Focus – Global Best Practices Industry fast embracing modern shop-floor practices: 5-S; 7-W Kaizen TQM TPM 6 Sigma Lean Manufacturing Focus on Quality 15

16 Auto Component Industry Profile - Imports Sources of Imports (* Estimates) USD billion * * 16 CAGR : 11% CAGR : 13%* Figures for financial year – April to March *

17 17 Total Industry Potential: USD 150 billion by 2020 Vision 2020: Indian Auto Component Industry USD Billion 56 E-Estimated *New Methodology followed from onwards Source: ACMA - EY Vision 2020

18 Korea In India 18

19 Major Korean Tier1 players presence in India More than 50 JV… An Illustrative list: Daerim Enterprise Co. Ltd. Donga Manufacturing Corp. Dymos Inc. Hwashin Co. Ltd. Iljin Corporation Infac Corporation Jin Young Industries KCW Corporation Komos Co. Ltd. Kwang Jin Sang Gong Co. Ltd. Kyungshin Industrial Co. Ltd. L S Mtron Mando Corporation Mobis Myung Hwa Ind Co. Ltd. NVH Korea Oto Co. Ltd. Pyeong Hwa Automotive Co. Sung Woo Hitech Co. Ltd. SL Corporation Yongsan Co.

20 20 India-Korea Auto Component Trade USD Million Growth of Imports from Korea: 3% ( 2012/ 2011) Growth of Exports to Korea: 1% (2012/ 2011)

21 Biggest Korean Success Story in India 21

22 Making Vehicles for India Vehicle for worldwide export 2 nd biggest car Manufacturer in India 22

23 Capabilities & Challenges of Indian Component Suppliers 23

24 Advantage India Product Development Capabilities Availability of skilled manpower English Speaking Source: CRIS INFAC; BMI; IBEF High Quality Standards Export incentives and favorable currency Conversant with Global Automotive Standards Respect for Intellectual Property Democratic Judicial System Growing IT capabilities Strong Entrepreneurship Flexibility in Small Batch production …..Key drivers enabling capability and growth of Indian component suppliers India is fast becoming a favored investment destination for its….. Indian Auto Component Industry Large and growing Domestic demand 24

25 Increasing focus on Innovation and Research AMD Boeing Bosch Caterpillar Continental Cummins Ford GM GE Honda Honeywell Hyundai Intel Magna Motorola Mercedes Benz Microsoft Renault Nissan Suzuki Valeo Design & Research Centers of leading Global companies in India (Illustrative List) 25

26 Challenges – Typical of a high Growth Emerging Market Raising Capital & Scaling Capacities Infrastructure Challenges Roads Ports Power Inflation Timely Government decisions R&D Competence 26

27 Advantage Jamshedpur Huge Opportunities Developing Indian Suppliers as supply base Low cost manufacturing model Frugal Engineering 27

28 Fully Developed Industrial City: The House of Tata Group 28

29 Availability of Ferrous Raw Material 29

30 World Class Power Availability: JUSCO POWER by TATA 30

31 Road Infrastructure 31

32 Successful Joint Ventures & Technology Transfers in Jamshedpur Hitachi Cummins Klein Kyocera Cikautxo Coop Nippon Steel Metaldyne 32

33 The Way Forward 33

34 Potential areas of Cooperation South Korean SMEs to invest in green-field manufacturing in India Partnerships with Indian SMEs - Product and Process Technology. Supply Base discovery in India. Strategic Alliance to supply to Global customers. Joint R&D with Indian companies for new product development, designing and Testing. JV opportunities to supply to India based OEMs. Opportunities for

35 Win-Win Scenario Low Cost Manufacturing1. Technology Availability 2. Skilled Man Power2. Product and Process R&D 3. Frugal Engineering 3. Access to Global/ Korean OEMs 4. Growing markets

36 Delegation Profile Jamshedpur Auto component Industry 36

37 SAMARTH ENGINEERING CO. PVT. LTD. Adityapur - Kandra Road. Adityapur, JAMSHEDPUR INDIA Contact No Web site : FACTS Established in 1976 Company is part of Jamshedpur ( Eastern India ) based KAMANI GROUP, which has for four Generations served automotive Industry. We are an ISO / TS :2009 Certified Company by "CERMET We manufacture Pressed, Fabricated Components, Skin Panels and Assemblies for Chassis & Body Assemblies for Heavy Commercial Vehicles. Our Valued Customers (OEM): TATA MOTORS LTD., TML DRIVELINES LTD. (Tier 1 ): RSB Global Ltd., BRAKES India Ltd., Auto Profiles Ltd. We are one of the Preferred Suppliers of Sheet Metal Components, Skin Panels and Assemblies to TATA MOTORS LTD., at Jamshedpur & Lucknow because of our Quality and On Time Delivery to adhere to their 100% Schedule. We are practicing / maintaining, on regular basis, the learnings from various Cluster Programs that we have completed, such as - Visual Factory, 5S, Safety, KAIZENS, POKA YOKE, Continual Improvement Processes with support of Total Employee Involvement. QUALITY POLICY : We are committed to achieve absolute Customer satisfaction by exceeding Customer expectation in Quality, Cost, On Time delivery, Technology and Attitude by addressing their concerns through Continual Improvement to increase customer Trust & Confidence in " SAMARTH ENGINEERING. 37 Mr. Killol Kamani Managing Director Mission Leader

38 FACTS Established in 1992 Part of Sabind group. Other companies including a Ferrous foundry & Investment company. Joint Venture with Metaldyne, US since TS 16949:2009 certified. ISO certified Export more than 5.0 mln, auto components for OEM application since Customer base in North America, South America, Europe, Japan, Thailand & India. Customers : International: Cummins, Nissan, Volvo, Ford, Metaldyne. Domestic : Tata, AMW. Supplier for precision machined auto components, Flywheel Assemblies, Vibration Dampers, Axle components, Pulleys, Ferrous castings. Group Sales USD 50mln. Operational focus on 5S, Safety Lean manufacturing, Poka yoke & Kaizen. Dy. Mission Leader Sanjay Sabherwal Managing Director METALDYNE INDUSTRIES LIMITED. 21-A, Phase VI, Industrial Area Gamharia, Jamshedpur INDIA Contact No Web site

39 Emdet Jamshedpur Pvt. Ltd. B-7& 8, Industrial Estate, Adityapur, Jamshedpur , Jharkhand Website: FACTS Year of Commencing Production: 1978 Products Manufactured: Emdet Jamshedpur, is renowned company offering multi-appliction automotive rubber products like Silicone Hose, Radiator Hoses, Flexible Rubber Hoses,Molded Radiator Hoses, Moulded Rubber Parts, Engine Mountings, Metal to Rubber Parts, Flexible Fuel tubes etc. for automobile industries. Number of Employees: 210 Quality Systems Standard: ISO/TS 16949:2009, by CERMET, Italy Sales Turnover ( in US $ Mln): 8.62 Principal Customer:- Domestic (OEM): Tata Motors Ltd.(Jamshedpur, Pune, Lucknow), Ashok Leyland Ltd.(Chennai), Volvo India Ltd.(Pithampur, Indore), Tata Commins.(Jamshedpur) Domestic (Tier I): Banco Products India Ltd.(Jamshedpur & Vadodara Units), RSB Transmission Ltd.(Jamshedpur), Tata Toyo Radiators Ltd.(Jamshedpur & Lucknow Units), Alkraft Thermotechnologies Pvt. Ltd. Joint Venture with Neff Perkins, USA & are supplying rubber GASKETS 38 Mr. Ranjot Singh Managing Director

40 Highco Engineers (P) Ltd. B-23 & 25, 1st Phase Industrial Area Adityapur, Jamshedpur , Jharkhand Website: FACTS Established in the year 1979 Manufactures sheet metal stampings and fabricated assemblies for the leading automotive OEMs and Earth Moving Machinery manufacturers in the country. Associated for the past 35 years with Tata Motors. Highco group is also into Construction Industry (Building Facades) through its sister concern Kharkai Building Systems Private Limited Sheet Metal Auto Components Manufacturer Established in the Year 1979 Annual Group Turnover of ( USD million ) Suppliers to OEMs like Tata Motors Limited ( Jsr-Lkw-Pune) Tata Marcopolo ( Dharwad ) Wabco TVS India Ltd. (Sundaram Clayton) Tata Hita ( Jsr-Dharwad-Khagadpur) RSB Group ( International Auto ltd ). Tata Johnson Control 40 Mr. Sanjay Kumar Singh Managing Director

41 Multitech Auto Pvt. Ltd. A-5, Near Industrial Estate, Adityapur, Jamshedpur , Jharkhand Website : FACTS Managing Director: Mr. Atul Dua Chief Executive: Mr. Surendra Gadia, COO Sales-in-charge: Mr. Suvro Joti Paul Export-in-charge: Mr. Bikramjeet Bhardwaj Production-in-charge: Mr. Dinesh Kumar Sinha Year of Commencing Production: 1996 Products Manufactured: Machining Hardened and Ground Components Number of Employees: 118 Trade Marks: MAL Quality Systems Standard: ISO/TS by BSI Sales Turnover ( in US $ Mln): 7.43 Principal Customer:- Domestic (OEM): Tata Motors Ltd., WABCO, Tata Cummins., Telcon., TRF., AMW. Domestic (Tier I): York Transport Equipments Ltd. 41 Atul Dua Managing Director

42 ASL Industries Pvt Ltd C-54, 55, 56, IVth Phase, Adityapur industrial Area, Gamharia, Jamshedpur – , Jharkhand. Phone: , us at: FACTS Products Manufactured: Sheet metal pressed components including cross and long members, Forged and machined components, and their assemblies for commercial vehicles, utility vehicles and Agricultural Tractors. No of employees: 345 Quality Policy: Our constant endeavor is to manufacture products of pre-eminent quality that confirm to the customers need consistently by strict conformance to specification, competitive cost, on time delivery and to strive for excellence through the implementation of the Quality Management Systems, fulfilling Quality Objectives and continual improvement in our systems and technology. Quality certification: ISO/EMS 14001, ISO/TS and ISO/OSHAS Sales Turnover (US $ Mn for Year ): 8.24 Principal Automotive Customers Domestic: Tata Motors, York India Pvt Ltd, JOST 42 Mr. Dilip Goyal Chairman & Managing Director

43 FACTS Manufacturers of SG Iron ( Ductile Iron ) & Cast Iron Castings & Components Manufacturing Facilities a)2000 Kg. / 1500 KW Dual Track Induction Furnace b)1000 Kg. / 750 KW Dual Track Induction Furnace c) 500 Kg. / 450 KW Dual Track Induction Furnace d)ARPA 900 Molding Machine – 1 Pair ARPA 450 Molding Machine – 2 Pairs e)Full fledged Metallurgical & Metrological Laboratories f)CNC Machine Shop with Turning Centers, VTL & VMCs g) Installed Capacity: 17,500 MT / annum Quality Certification We are a TS : 2009 Certified Company and are now going in for ISO Certification. Major Customers : 1) M/S Tata Motors Ltd., & its group industries, Jamshedpur, Pune & Lucknow 2) M/S Automotive Axles Ltd. ( A Meritor Group Company ) 3) M/S Metaldyne Industries Ltd., Jamshedpur 4) M/S York Equipments Ltd., Pune 5) M/S Tata Steel Ltd., Jamshedpur BMC Metalcast Pvt. Ltd. A-18,19, Phase II, Industrial Area, Adityapur, Jamshedpur , Jharkhand Website: Mr. Deepak Dokania Executive Director

44 Singhbhum Machinometal Pvt. Ltd. B-32, 2 nd Phase, Adityapur IndustrialArea, Jamshedpur , INDIA Contact No: FACTS Year of Commencing Production: 1979 Products Manufactured: Precision machined wheel and axle components for heavy commercial vehicles like – Hubs, Differential Case and Differential Covers. Pinion Housings and Brackets. Fabricated sub-assemblies for Commercial Vehicle Engines like – Turning Tubes, Support Tubes, Pedal Levers, Link Rods and Gear Shifting Levers. Number of Employees: 91 Quality Certification: ISO/ TS-16949:2009 Sales Turnover ( in US $ Mln): 3.5 Principal Customer:- Domestic (OEM): Tata Motors Limited, Tata Motors Drivelines Limited, Tata Motors Limited (Lucknow), Ramakrishna Forgings Limited, Axles India Limited 44 Mr. O. P. Chopra Managing Director

45 Conclusion Growing Indian Economy Automotive Industry - Double Digit Growth in all segments India fast emerging as hub for Global Vehicle Programs 2020 : USD 113 billion Auto Component Industry Growing Engineering and IT capability for Designing & Manufacturing Respect for IPR Opportunity to Partner in Product & Process Innovation Opportunity to Outsource for OEMs/T1s and Aftermarket India: The Gateway of Growth 45

46 ACMA The Capital Court, 6th Floor, Olof Palme Marg, Munirka, New Delhi – Tel: , Fax: Website: for any assistance contact 46 Connecting India to the World Thank you for your Kind Cooperation & Support

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