Pre-Owned Vehicles Account for 70% of India's CV Sales

Contents 56 14 116

Editorial...... 8 Auto industry Changing dynamics in the Indian CV segment...... 10 Vehicle zone Ready for the future - Indian CV manufacturers gear up for fiercer competition...... 14 Tata Motors all-out bid to retain market share...... 16 Ashok Leyland focus on consolidation...... 32 M&M vehicle sales spurt despite several odds...... 48 Anand Mahindra appointed Mahindra Group Chairman...... 51 Force Motors looking at fast-growing segments ...... 56 Hinduja Automotive’s new initiatives paying off...... 62 Eicher sales, profit up despite market challenges...... 68 Nissan-AL Technologies setting up state-of-the-art plant near Chennai...... 102 Mahindra & Mahindra launches New Bolero Maxi Truck...... 116 Parveen Travels’ Mercedes Benz service for DICV...... 118 Component zone Gabriel India setting high standard in ride control...... 26 NORMA India’s expanding customer base...... 42 HJS footprint in India positively essential...... 52 KCI’s modern bearings plant coming up in Gujarat...... 66 Bosch’ new injection system to cut CV fuel use, emissions...... 70 Impact Glass’ customer-centric approach for market expansion...... 98 Luminator Technology Group takes over Mobitec...... 120 Bharat Forge all set to forge ahead...... 124

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Contents 94 Our next issue Review of Automechanika Frankfurt & IAA Hannover For circulation at FIAA, Madrid

Tyres Apollo Tyres’ higher outlay on widening product range...... 60 Applications TRF targets Rs. 2,500-crore turnover by 2013...... 72 IAA Preview IAA special meet to discuss India’s CV industry status...... 78 Voith to showcase latest product at IAA...... 80 IAA symposium will focus on benefits of modern telematics systems...... 82 Continental technologies for greater economy and efficiency...... 84 IAA Commercial Vehicle Fair to witness Gala Awards presentation...... 88 LAMILUX high-tech materials for lightweight vehicle design...... 90 VDMA discusses role of automation in reducing overall cost of production...... 92 Logistics VRL logistics leading the way in service quality and work ethics ...... 94 Vehicle finance Shriram Transport Finance empowering Indian trucking industry...... 104 Aftermarket Genuine or spurious parts: A choice of life or death...... 108 Urgent need to enforce EU model ELV directive in India ...... 122 ACMA to hold ‘India Day’ at Automechanika Frankfurt...... 128 IndianOil gross turnover up 12.4% at Rs. 101,936 crores...... 130 Events...... 131 How redBus has revolutionized Indian bus ticketing...... 140 MEN at the helm...... 142

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MOTORINDIA Editorial Publishers Gopali & Co., Quanta Zen Building, No.38, Thomas Road, 2nd Street, Off. South India, still the best bet Boag Road, T.Nagar, Chennai - 600 017. Ph.: 24330979, 42024951. Fax: 044-24332413 The temporary setback in industrial activ- Email: [email protected] Founder ity due to general slowdown notwithstand- M. Rajagopalan ing, India is still reckoned a vibrant indus- Mentor trial world power. Ranked the 19th largest Rajagopalan Kalidasan Managing Editor & Publisher exporter, the country registered the highest R. Natarajan growth rate among developing nations dur- (Res: 24343475 Cell: 9381062161) Email: [email protected] ing mid-2000s, thanks primarily to the grow- Assistant Editor ing number of middle class customers, abun- K.N. Ananthanarayanan (Cell: 9003053132) dant availability of skilled labour and a good Executive Editor & General Manager inflow of foreign investments into different K. Gopalakrishnan (42127950, Cell: 9840897542) industry sectors. India’s industrial growth in Email: [email protected] the modern sense of the term originated pre- Editorial Correspondent N. Balasubramanian (Cell: 9840597082) cisely in 1991 with the globalisation com- Email: [email protected] pulsion for opening up of the economy. The R. Natarajan, Managing Editor & Publisher Marketing Indian automotive industry, the lifeline of G. Mohan N. Ananthan the economy as elsewhere, proved the real engine of growth attracting attention of Designer almost all MNCs. The entry of Maruti signalled a thorough transformation of the E. Marimuthu automobile technology. This was followed by the foray of other foreign players REGIONAL MANAGERS into every segment of the auto sector by setting up operations alone or in associa- Mumbai R. Balasubramanian (Cell: 9323711291) tion with their Indian counterparters. Today, India has emerged the second largest G-102, Srinagar Co.Op. Housing Society, manufacturer of two-wheelers, the fifth in commercial vehicles and the seventh Off. P.L. Lokande Marg, Chembur (West), largest manufacturer of passenger cars in the world. A supplier-driven market hav- Mumbai - 400 089. Ph.: 022-25252377. Email: [email protected] ing not more than a handful of vehicle models two decades ago, it now offers Coimbatore more than 160 models and variants by way of customer options. In PPP terms, the Ganesh Kalidasan (Cell: 9790926388) country is expected to be the third largest economy by 2020. Flat No.A1-42, TVH Ekanta No.5/179, Masakalipalayam Road An investor-friendly automobile policy, a highly indigenised vehicle technology Uppilipalayam, Coimbatore 641015. developed over the last few years and the special R&D initiatives by both auto- Email: [email protected] mobile and component manufacturers have kept the sector in good stead. Nay, the Bangalore J. Saravanam (Cell: 9880974765) overall encouraging performance of the industry was behind the formulation of the BS 23, 2nd Floor, Block ‘B’ Ittina Neela, Near Automotive Mission Plan (AMP) by the Government, which envisages the auto Gold Coins Club, Andapura, Electronics City P.O., sector’s annual turnover growth to $145 billion from the current $45-50 billion Bangalore-560100. and its contribution to GDP shooting to 10 per cent from five per cent by 2016. Email: [email protected] The targets fixed are within easy reach as can be inferred from the Indian auto Allahabad Shoubhik Sarkar (Cell: 9936245032) industry’s comparatively quicker recovery from the worst-ever world recession 196-A, Chak Raghunath, Jail Road, of 2008 that destabilised the individual economies across the globe. Further, the (Behind Asha Hospital), Naini, Allahabad - 211008 (U.P.) Ph: 0532-2696873 production and sales figures released by SIAM are pointer to the industry potential Email: [email protected] for an earlier upswing, despite deterrents to expansion. The industry witnessed a Member of INS / AINEC / IFSMAN 7.10 per cent growth in cumulative production of vehicles during April-July 2012. Edited & Published by R. Natarajan on It turned out 17,46,840 vehicles in July 2012 as against 16,56,014 vehicles in July behalf of Gopali & Co., Quanta Zen Building, 2011. The overall growth in domestic sales also registered a 9.34 per cent growth No.38, Thomas Road, 2nd Street, T.Nagar, Chennai-17, and Printed by B. Ashok Kumar during April-July 2012 over the previous year. All this confirms that India is still at Rathna Offset Printers, 40, Peters Road, the best bet. Royapettah, Chennai-14 www.motorindiaonline.com

8 MOTORINDIA l September 2012

auto industry Changing dynamics in the Indian CV segment

By Dr. Wilfried Aulbur, Managing Partner, Roland Berger Strategy Consultants Pvt. Ltd., Mumbai

However an extended period of European readjust- ment, slower growth in key markets such as the US and China as well as a period of misguided policy deci- sions in India lead to significant short-term challenges. As shown in figure 1, quarterly GDP growth has come down to an unsatisfactory level of 5.3 per cent, the In- dex of Industrial Production (IIP) is weak, inflation and interest rates are high as is the fiscal deficit, and business confidence is at a record low. This is very well reflected in a contraction of the MHCV market. Sales this financial year have fallen by about 13 per cent. LCVs have grown by 18 per cent driven by strong demand in the sub-3.5T segment, while the 3.5-7.5T segment has witnessed a significant contraction. Market weakness coincides with a dramatic increase in competitive intensity. From a duopolistic market, India has evolved to a stage where nearly every international player of repute is present across segments, as shown in figure 2. While some new entrants such as Scania or Hino follow niche strategies, all other entrants Dr. Wilfried Aulbur – MAN, Mahindra Navistar, AMW, Volvo-Eicher and he mid- to long-term pros- BharatBenz – have volume aspirations. pects of the Indian com- As figure 3 shows, new players have made their presence felt and somewhat reduced market shares of the mercial vehicle market are T dominant players. However, aspirations regarding mar- encouraging enough. Growth for ket share have perhaps not been met so far. Ambitious MHCVs stands at a CAGR of six targets – BharatBenz’ strategic objective to become the per cent over the last five years No.2 in the Indian commercial vehicle space or Mahi- ndra Navistar’s announcement to grow to 50,000 MH- and for LCVs at a very impressive CVs over the next few years – are clear indications that CAGR of 21 per cent. competitive intensity will remain high over the next

10 MOTORINDIA l September 2012 auto industry

Figure 1 Roland Berger Strategy Consultants

three-five years. 70 dealers in the first phase with a lot of new capacity being added Players such as Volvo-Eicher a strong focus on southern India in the market, margin pressure is have revamped their product port- where it intends to challenge Ashok likely. Companies will resort to folio with a firm view to gaining Leyland’s dominance. Mahindra discounts to achieve market shares. market share in the MHCV seg- Navistar has set up state-of-the-art Even today, discounts in the indus- ment. Moreover, India has been dealerships across the country and try are reported to be in the range of chosen as the global hub for Volvo’s invests in service innovations such Rs. 60,000 per truck. 5 and 8l engines – a move that not as 24x7 hotlines, a 48-hour response Financial pressures will not re- only strengthens India’s global rel- guarantee to get trucks back on the main limited to OEMs. With large evance for the company, but also road, extended warranties and the new investments and volume pres- positively impacts Volvo-Eicher’s like. sures coming their way, dealers may competitiveness within India. MAN With a market contraction and find their viabilities challenged as has brought out a new LITE range well. of trucks for rated load applications, The winners in this complex and Established companies such as while BharatBenz will launch 16 Tata Motors and Ashok Leyland challenging environment will be trucks over the next 1.5 years. react with product offensives companies that combine strong cost Leading Indian players are under of their own. While Tata Mo- focus, superior execution capabil- attack not only from a product but tors announced investment of ity and relentless focus on customer also from a service perspective. New about Rs. 2,000 crores, Ashok needs. Cost and superior execution networks are being rolled out with Leyland will invest about Rs. are vital to protect margins in an considerable speed. BharatBenz, 800 crores. environment in which escalating for example, has rolled out about input costs and investments as well

MOTORINDIA l September 2012 11 auto industry

Figure 2 Roland Berger Strategy Consultants

as sales measures to support volume customers has forced a number of However, to fully reap the benefits targets prevail. new entrants to introduce cowl ver- of a trucking revolution, strong sup- Also, the change in consumer sions of their trucks. port from the Government (GST, preferences is likely to be slower Thus, the Indian consumer will infrastructure investments, etc.) is than anticipated in certain areas. As benefit from an industry that will absolutely necessary. a matter of fact, resilience of truck move up on the efficiency curve. w

Figure 3 Roland Berger Strategy Consultants

12 MOTORINDIA l September 2012 vehicle zone (cover story) Ready for the future Indian CV manufacturers gear up for fiercer competition

By R. Natarajan, Managing Editor & Publisher

The year 2012 was a challenging petitive and dynamic markets in the and upgrading technologies, making and interesting one for the Indian world. MAN, now with complete it an intense battle for market share. commercial vehicle segment. The management control over the Indian AMW is another Indian company to most turbulent at that, the year posed business, is another global name watch out for, following its strong bigger challenges with its adverse ready to start afresh in the Indian showing in the mining and construc- impact on production as well as sales market. Volvo has almost become a tion segment, while Kamaz Vectra, in most categories. Still the CV seg- synonym of ‘luxury’ in the bus seg- the Indian face of the Russian mar- ment, with its immense growth po- ment, while its Swedish neighbour ket leader Kamaz, is also doing quite tential, continued to consolidate its Scania has begun construction of its well in the segment. presence in the market by attracting plant which would make it Volvo’s SML Isuzu, buoyed by Japanese more global vehicle manufacturers. neighbour in India too. And Foton, technology, is also in the running. The multinationals in operation the Chinese giant, has entered the In addition, there are two powerful in India made their presence felt fray with its plant in Pune. joint ventures in the reckoning – by sending across clear indications Having anticipated a potential for- Volvo-Eicher Commercial Vehicles of what one could expect from the ay by multinationals, the prominent (VECV), a strong partnership with market. Daimler is one such with domestic players like Tata Motors big expansion plans in offing, and its peerless approach towards what and Ashok Leyland are aggressively Mahindra-Navistar, which recent- is considered one of the most com- expanding their product portfolio ly sold its 5,000th truck, attracting greater public attention. Competition in the Indian commercial vehicle segment is hotting up, with several players in the field expanding their individual operations. Tata and Ashok Leyland, the Indian market leaders for long, are keen on maintaining their share somehow. How the two modify their strategies to suit the changing scenario will be watched with both interest and anxiety. w

14 MOTORINDIA l September 2012 vehicle zone (cover story)

he year 2011-12 proved a mixed bag for Tata Motors. The company Tretained its market leadership in commercial vehicles and gained further market strength through the highly successful Ace and Magic, its new line of light pick-up trucks. On the other hand, passenger car sales were below expectations, even though sales of the Nano increased over the previous year.

Says Mr. Ratan N. Tata, Chairman: “Tata Motors will strive to retain its market prominence domestically and internationally and will continue to be a responsible corporate citizen wherever it operates and do the right thing for all its stakeholders and the communities which it serves.” The automobile sector impacts the lives of millions worldwide. It creates a huge number of direct and indirect jobs and drives the quest for new technologies, lighter, stronger materials as well as new processes and business models. It has resulted in some of the most important infrastructure investments in many countries – highway systems which connect cities, connect production centers to markets and rural areas, and connect communities separated by water and mountains through bridges and tunnels. While commercial vehicles constitute one of the main forms of competitive

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Mr. Ratan N. Tata goods transport, based on a business proposition, the passenger car is probably one of the most emotive products in the world today. Despite the much greater interest in performance, advanced technology and reliability, the acquisition of a car continues to have an important element of emotional buyer attraction based on design, style and visual appeal which results in a sale. In the coming years, Tata Motors’ dominance in commercial vehicles will be challenged by international brands like Mercedes-Benz, Volvo and Navistar which have already entered or in the process of entering the Indian market. A new line of very competitive, fuel-efficient vehicles is being developed by Tata Motors to meet the competition head-on. In passenger cars, the company will face even greater competition from the many automotive

MOTORINDIA l September 2012 17 vehicle zone (cover story)

brands that are in the country. Of course, it has to address the marketplace more effectively with its existing and future products in order to re- gain the level of market share that it earlier enjoyed. The automotive industry has been, and probably will always be a barometer of the economic health of a na- tion and remains a symbol of its prosperity. It will play an important role in the development of India. It will strive to retain its market prominence domestically and internationally and will continue to be a responsible corporate citizen wherever it operates and do the right thing for all its stakehold- 8,63,248 vehicles, a growth of 10.9 This segment also saw the entry of ers and the communities which it per cent over the previous year in the new players, which put pressure on serves. Indian domestic market. With the the market share. However, sales of The Tata Motors Group sales industry growing at a moderate 7.2 the Tata Prima, the next generation stood at 12,69,483 vehicles in 2011- per cent, the improved sales resulted truck, continued to grow. A much 12, higher by 17.7 per cent over in an increase in the company’s mar- sharper focus on network develop- the previous year. Global sales of ket share from 24.3 per cent to 25.2 ment and customer initiatives laid all commercial vehicles were at per cent, in the Indian industry. The the foundation for future growth in 5,99,913 units, while global sales company exported 63,105 vehicles M&HCVs. of all passenger vehicles were at from India against 58,089 vehicles Passenger vehicles 6,69,507 units. the previous year. In a year where the domestic car The company recorded sales of Commercial vehicles industry grew only by 3.6 per cent, Within the domestic market, Tata Tata Motors sales of passenger ve- Tata Motors Power Stats Motors continued to strengthen its hicles in the domestic market (inclu- • Rs. 170,678 crores consolidated presence in commercial vehicles, sive of Tata, Fiat and Jaguar Land revenues in 2011-12 with sales of 5,30,204 units, grow- Rover brands) was at its highest • Over 6.5 million Tata vehicles ing 15.7 per cent over from the pre- ever of 333,044 units, representing running on Indian roads since the vious year – an all-time high for the a growth of four per cent over that first one rolled out in 1954 company. This represented a market of the previous year. In an intensely • 59,000+ consolidated team leadership share of 59.4 per cent in competitive passenger vehicles mar- strength the domestic CV market. ket, a market share at 13.1 per cent • 6,600+ sales and service touch Sales in the M&HCVs segment was the same as the previous year. points for Tata Motors and JLR grew moderately at 5.3 per cent. Exports • 129 country footprints (across Volumes at 2,07,086 units reflect- Focused efforts in select ASEAN six continents) ed a market share of 59.4 per cent. and Africa markets helped interna-

18 MOTORINDIA l September 2012 vehicle zone (cover story)

tional exports from India grow by ous year. Tata Hispano successfully ed a growth of 19.2 per cent with 8.6 per cent to 63,105 units in the executed a prestigious CNG series the highest ever sales of 892,349 fiscal year. The company exported hybrid low floor bus order for EMT vehicles. The medium and heavy 55,079 commercial vehicles and Madrid during the year, demonstrat- commercial vehicles (M&HCV) 8,026 passenger vehicles, a growth ing its technological capability. The segment grew by 6.5 per cent, of 9.6 per cent and 2.3 per cent re- company made a provision for in- while growth of the light commer- spectively over the previous year. vestments in Tata Hispano, arising cial vehicle (LCV) segment was at A CKD plant was set up in South from continuous under-performance 29.1 per cent. The lower growth in Africa for assembly of commercial in challenging market conditions. agriculture, manufacturing and con- vehicles. Another plant is being set Tata Motors (Thailand) Ltd. struction sectors mainly contributed up in Indonesia which is expected (TMTL) was affected by floods in to lower growth in the commercial to start operations next year. The Thailand during the year, which vehicle segment at 19.2 per cent as company continues to have a special negatively impacted supply chain compared to 27.3 per cent in 2010- focus on expanding its global foot- partners and the overall demand 11. Further, M&HCV demand was print and is targeting product actions scenario there. As a result, volumes mainly affected by higher interest specifically to cater to international of TMTL at 4,978 units in 2011-12 rates and restricted financing due to geographies. were down by 17.5 per cent from the tight RBI monetary policy. Sales of Tata Daewoo Commer- previous. TMTL launched TDCV cial Vehicle Company (TDCV) at CNG tractors and Super Ace to The company’s sale of commercial 9,531 units were higher by nine per boost volumes. The Nano, also be- vehicles in the domestic and interna- cent over the previous year. Tata ing tested for sale in Thailand, has a tional markets 2011-12 was 585,283 Daewoo Sales company, which was potential to boost volumes. units, representing a growth of 15.1 established in FY 2010-11 to dis- Tata Motors (SA) (Proprietary) per cent over the previous year. The tribute TDCV products, has stabi- Ltd. launched the Prima range of growth was driven by focused product lized its operation during the year, trucks in South Africa alongwith actions, enhancement of quality serv- enabling TDCV to focus on key ac- the TDCV range of tractor trailers ice network, expanded service outlets counts and fleet customers. and the Indigo Manza at the Johan- and financing options suited to cus- Tata Hispano Motors Carrocera, nesburg Motor Show with a view to tomer needs. S.A. (Tata Hispano) was seriously increasing the product offerings in affected by the economic downturn that country. The LCV segment continued in Europe, particularly in Spain. Commercial vehicle segment to drive growth for the company Sales for 2011-12 were at 368 units, During the year, the domestic whose sales increased by 23.5 per down by 27 per cent from the previ- commercial vehicle market record- cent to 323,118 units from 261,637

20 MOTORINDIA l September 2012 vehicle zone (cover story)

The global competitors bring international experience, global scale, advanced technology and significant financial support, for the operations in India. The competition is likely to further intensify in the future. The company has designed its products to suit the requirements of the Indian market based on specific customer needs such as safety, driving comfort, fuel efficiency and durability. The company believes that its vehicles are suited to Indian roads and climate and comply with the current environmental regulations in force. The company also offers a wide range of optional configurations to meet the specific needs of units in 2010-11, thanks to im- ily. In particular, the growth in the its customers. It is also developing proved performance in the pick-up small commercial vehicle segment products to strengthen its product segment and ramp-up of production in these geographies was robust. portfolio in order to meet customer at the Pantnagar plant. Commercial The new launches during the year expectations. production has commenced at Dhar- included the Tata Divo, a super-lux- Indian market outlook wad. The major launches in 2011-12 ury inter-city bus, and new variants The Indian economy is likely to were the Ace Zip and Magic Iris. in the Tata Starbus Ultra range. grow moderately at 7.6 per cent. In- Uptrend in the Tata Ace sales con- Stiff competition ahead put costs continue to remain under tinued. The company faces competition pressure from increasing commod- However, the entry of new players from various domestic and foreign ity prices. With higher intensity in in the small commercial vehicle cat- automotive manufacturers in the the competitive scenario, pricing egory and the expanding market size Indian automotive market. Improv- power remains limited and mar- in this segment resulted in lowering ing infrastructure and robust growth gins are likely to be under pressure. of the company’s market share in prospects compared to other mature Against this backdrop, Tata Motors the LCV segment to 59.4 per cent in markets are now attracting a number will continue to focus on providing 2011-12 from 62.1 per cent in 2010- of automotive OEMs to India. These new products and solutions to the 11. In the M&HCV category, the companies have either formed joint- customer with a view to reducing company sold 207,086 units during ventures with local partners or have the total cost of ownership. Along 2011-12, marking a market share of established own operations in India. with initial acquisition price, the fo- 59.4 per cent. The economic crisis in the Euro Zone and political unrest With a view to maintaining its advantage of reach and penetration, the in the Middle East led to a global company will also expand its sales and service network with its focus on slowdown. The real GDP growth upcountry markets. Aggressive cost reduction continues to be a focus area in the Euro Zone dropped succes- to offset the increased input costs and continuously improve margins. The sively in every quarter of the year. company is also actively pursuing opportunities in international markets, The SAARC and ASEAN countries, including the possibility of CKD and SKD assembly to offset high import however, continued to grow stead- costs.

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cus would be on improving fuel ef- pared to other mature economies rica and South America. These econ- ficiency and reducing maintenance since the economic downturn, with omies were not as badly affected by costs of vehicles. GDP growth and falling unemploy- the economic crisis as the Western The global scenario ment, although the position remains economies and have continued their The European economy continues fragile. The Chinese economy con- GDP growth in the last few years, to struggle, with austerity measures tinued to grow strongly throughout partly on the back of increased com- in place in a number of countries. 2011-12. Its growth is likely to slow modity and oil prices. The economic situation and recent in future, although it may remain Tata Motors has been the top In- national election results continue to above eight per cent. dian automotive player over the create uncertainty around European Japan, Australia and New Zealand last few decades. The commercial zone stability, the Euro and borrow- in the Asia Pacific region were less vehicle segment has seen the coming costs. Credit continues to be dif- affected by the economic crisis company battle it out with only a few ficult to obtain for customers and the pared to Western economies, and competitors, a scenario which is outlook remains volatile. are recovering a little faster, often fast changing with the entry of big Initial figures suggest that the UK due to increased trade with China global names. As competition gets economy has re-entered recession in and other growth economies. more intense, Tata Motors is really the last three months. Trading condi- The major constituents in other aggressive in its approach to main- tions in the UK remain difficult. The markets are Russia, South Africa tain its markethold. US economy has recovered as com- and Brazil, alongside the rest of Af- w Karl Slym takes over as Tata Motors MD

Tata Motors has appointed Mr. Karl Slym as Managing Director with effect from October 1. He succeeds Mr. PM Telang who superannuated from the company in June this year. Mr. Slym would lead all operations of Tata Motors in India and international markets, including South Korea, Thailand, Spain, Indonesia and South Africa. However, Jaguar Land Rover would continue to be managed independently. An alumnus of Stanford University and a Sloan Fellow, Mr. Slym has been the Executive Vice President & Board Member, SGMW Motors, China. Prior to this, he was President, Managing Director and Board Member of GM in India. He has had a 17-year career with General Mo- tors in different capacities in different regions. Mr. Karl Slym

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component zone Gabriel India setting high standard in ride control By R. Natarajan, Managing Editor & Publisher

Gabriel India Limited, a leading name in the Indian auto component industry, has completed five decades of its exist- ence. The company provides the widest range of Ride Control products in India with Shock Absorbers, Struts and Front Forks, catering to Passenger Cars, Util- ity Vehicles, Commer- cial Vehicles and Two Wheelers. The pioneer of Ride Control products in the country, ‘Gabriel is a renowned brand synonymous with shock absorbers. Its products have established a significant presence in all automotive segments, viz: OEMs replacement markets and exports. Over the last fifty years. Gabriel In- dia has earned the reputation of being a complete solution provider of innovative and proprietary products that have become the company’s hallmark. Mr. Manoj Kolhatkar, Managing Director, Gabriel India The flagship company of Anand,

26 MOTORINDIA l September 2012 component zone

The Gabriel team at Chakan plant: (Top row) From left, Mr. Atul Jaggi, General Manager-Quality, Mr. S. Sengupta, Director (Strategic Sourcing), Mr. Manoj Kolhatkar, Managing Director, Mr. Rajendra G. Abhange, Technical Director, Mr. Kawal Jaggi, Sr. VP-Finance. (Bottom row) From left, Mr. R.B. Joshi, General Manager (R&D), Mr. Umesh Shah, VP-Strategy & Business Planning, Mr. Nalin Kumar Jaini, VP-HR, and Mr. C. S. Sub- ramanian, Director-Marketing Gabriel commenced operations in Spain for 4 Wheeler and Yamaha ess apart from winning the Golden 1961 with a single plant in Mulund, Motor Hydraulic Systems Japan for Peacock Award for Innovation twice Mumbai and has grown manifold two wheeler product development. during 2007 and 2012. since then with seven manufactur- This has enabled Gabriel provide Continued focus on R&D has set ing facilities spread across the coun- futuristic products to global OEMs the path for future. Gabriel has three try (Pune, Nashik, Hosur, Dewas, in India. well equipped state of art R&D cen- Gurgaon, Parwanoo, Sanand). The Gabriel’s focus is on innovation tres located in Chakan, Hosur and Motor India Editorial team recently to provide cost effective solutions Nashik to develop new products and visited Gabriel Corporate office at to customers, says Mr. Manoj Kol- carry out comprehensive testing and Pune and manufacturing facility at hatkar, Gabriel has so far filed 16 validation so as to optimize perform- Chakan to witness the state of the art patents covering products and proc- ance and enhance capability of its manufacturing facilities and process adopted by Gabriel. Discussing with Mr. Manoj Kol- hatkar, Managing Director of Gabri- el reinforces the company’s direction towards technology superiority to remain competitive. Over the last 50 years, Gabriel has developed a high level of technical competence and skills. In addition, Gabriel has technology collaboration with KYB Corporation, Japan and KYBSE

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be ready in 2013, would have unique and futuristic facilities for product design & validation. Gabriel is also setting up a ride evaluation facility for customer vehicle evaluation. This is would be over and above the onsite ride and handling facility already available with Gabriel. Says Mr. Manoj Kolhatkar, Gabriel would continue to invest a part of its sales in R&D and product development year on Ride Control products. These facili- well as cost reduction through local- year as part of its strategy and way ties provide value added services to ization efforts. These R&D centres forward. all customers in areas of noise meas- also provide customers with a facil- Gabriel way forward is on focus- urement, value engineering improv- ity to conduct ride tuning exercise ing and building sustainable manu- ing product quality by root cause on site through custom built mobile facturing process through reduced analysis of customer complaints as ride tuning vans. carbon foot print and bringing in This apart, Gabriel is setting up green technology in all its manu- a new Tech Centre for 2 Wheeler facturing locations. Gabriel’s manu- product developments at its Ho- facturing footprint enables timely sur plant. This facility, expected to deliveries to customers while op-

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timizing the availability of material. With a combined capacity of over 24 million Shock Absorbers and Struts and 2.7 million Front Forks, these facilities cater to the requirements of all segments of the market, making Gabriel the leading Auto- motive OEM supplier in the country. Gabriel also services the requirements of Defence, Railways and the Aftermarket segments in India. The Anand Group firmly believes house Anand University (Anand-U) people and instilling pride, creating that Business is 90% people as the and by deputing to external train- an environment with the workplace Chairman Emeritus Mr Deep C. ing. Gabriel is proud to receive the that promotes camaraderie. Anand proudly asserts that his key recognition from Great Places to w asset is the Group’s dedicated work- Work as the third best place force. Gabriel has taken this initia- to work in the Indian auto tive forward laying great emphasis component industry dur- on employee development through ing 2012, a unique honour training of people both at the infor inspiring trust among

MOTORINDIA l September 2012 31 vehicle zone (cover story)

32 MOTORINDIA l September 2012 vehicle zone (cover story)

The year 2011-12 was one of continuing consolidation for Ashok Leyland. The key challenge was to concurrently lay emphasis on the short-term actions to restore the market position and the long- term initiatives for growth. The company is pursuing the vision to be, in volume terms, among the Top 10 truck manufacturers and Top 5 bus players globally. In that journey, the year goneby witnessed a series of steps taken by Ashok Leyland that bolstered the confidence of realising its goals.

As was predicted last year, the declined to about 43 per cent of the commercial vehicle industry grew overall CV segment, compared to well, albeit at a slower pace, com- 47 per cent the previous year. The pared to the previous year, having LCV segment continued to grow recovered to higher base volumes. steadily. It has, in fact, been one Mr. Dheeraj G. Hinduja Chairman, Ashok Leyland The industry also saw a substantial of the strongest growing segments amount of competitive activity and in the entire automobile space. The Ashok Leyland delivered mixed recorded 18 per cent growth dur- small commercial vehicle segment results in 2011-12. It registered its ing 2011-12 to post its highest-ever (trucks of less than 3.5 tonnes GVW highest-ever sales of 94,397 vehi- volume of 8,09,532 units. Medium within LCVs), which accounts for cles, with a marginal growth of 0.3 and heavy commercial vehicles over three-fourth of the LCV mar- per cent compared to the previous (M&HCVs) grew by eight per cent, ket, is driving growth on the back of year. posting volume of 3,48,701, again strong demand for transportation of In the domestic market, the com- recording highest-ever sales. Light consumer goods within cities and re- pany sold 81,147 M&HCVs, two commercial vehicles (LCVs) post- placement demand from upper-end per cent less than the previous year. ed a growth of 27.4 per cent and three-wheelers. These included 20,635 M&HCV reached a volume of 4,60,831 units. Medium and heavy buses and 60,512 M&HCV trucks, The contribution of M&HCVs commercial vehicles one per cent more and 3.5 per cent

MOTORINDIA l September 2012 33 vehicle zone (cover story)

less respectively, compared to the previous year. The company lost 2.4 per cent market share in the Indian medium and heavy CV market during the year. Sales of multi-axle vehicles, the largest segment in trucks, contracted by 13 per cent in southern India. On the other hand, the intermediate commercial vehicles (ICV) goods segment grew nationwide by nearly 21 per cent and Ashok Leyland did gain market share in ICV goods, a fast-growing seg- flat floor bus, the 10x2 will be a pio- Ashok Leyland Motors in the Czech ment in which the company has its neering product for the Indian CV Republic. nascent presence. To sum up, con- industry. The 10x2 MAV represents The company has fixed challeng- traction of the company strongholds a significant product introduction ing targets in all focus areas and has and rapid growth of segments where into the largest truck segment, in- kicked off a host of ambitious ban- it has limited presence resulted in dicating further movement towards ner projects. In summary, it has pre- a mixed outcome in the domestic higher tonnage vehicles. pared well for the challenging eco- market. However, it demonstrated The launch of Solo is further evi- nomic scenario expected in future, substantial growth in exports, clock- dence of the company’s capabil- as well as the upcoming competition ing 12,852 vehicles in 2011-12, a ity to bring world-class passenger in the M&HCV space. 25 per cent growth compared to the transport products to the growing Light commercial vehicles previous year. Besides performance Indian market. The company’s con- Taking advantage of the prolifera- in the SAARC markets, it benefited tinued investments in Research and tion of the hub-and spoke model and through strategic expansion into Development through 2011-12 will the strong demand originating from several new geographies. Sales in also result in several launches in the rural segment, Ashok Leyland the Middle-East grew substantially, the next fiscal. The New Generation entered the LCV segment with the despite the overall uncertainty in the Cab and the Neptune Engine pro- launch of DOST last year. The prod- region, bolstered by the company’s grammes will see market introduc- uct has been well accepted by cus- capability to locally manufacture tions. ICV, the fastest growing seg- tomers, with 7,593 vehicles having buses at Ras-al-Khaimah. ment in the M&HCV range, will see been sold in the last fiscal and a total While the Jan Bus is the world’s the company come up with a brand of 14,841 vehicles sold from launch first single step, front engine, fully new product with inputs from AVIA till June 2012. Within six months of launch, Ashok Leyland has lined up several ground-breaking products for core DOST is already the second highest segments in the upcoming fiscal. Three such new products – the Jan Bus, selling model in the 2-3.5T GVW 10x4 multi-axle truck and the 8m ICV bus named ‘Solo’ – will be launched segment and has achieved a pan- shortly. India market share of 16.6 per cent.

34 MOTORINDIA l September 2012 vehicle zone (cover story)

Ashok Leyland John Deere Construction Equipment Com- pany Private Ltd., the 50:50 joint venture with John Deere Construction & Forestry company of the US, successfully launched its first product, the 435 Backhoe Loader in No- vember 2011. It sold 221 units in four months in the current fiscal. Its product has been well accepted by customers due to its superior positioning as compared to its competitors. Development of the distribution system is apace, starting with the southern market. As many as 18 dealerships have already been rolled out and an- This is despite DOST having been ued to grow rapidly and made a dis- other 27 are planned in the coming launched in only six States (Tamil bursement of Rs. 2,107 crores, a rise year. New service benchmarks are Nadu, Kerala, Karnataka, Andhra of over 70 per cent from the previ- being set with 100 per cent achieve- Pradesh, Maharashtra and Gujarat). ous year, across a wide range of segment of completing running repairs The vehicle, being sold through an ments, including medium and heavy on the same day and 100 per cent all-new dedicated distribution net- commercial vehicles, light commer- parts availability within 24 hours. work, continues to enjoy tremen- cial vehicles and three-wheelers. The JV company is planning to dous pull, particularly for its high end variants that offer extra features such as power steering, air-condi- tioning, etc. The company is ramp- ing up production at its Hosur facility to meet the rising demand for DOST. The dealer network will also be expanded and the product will be launched in other States this fiscal. Further variants of DOST are in the pipeline. Group companies and JVs Hinduja Leyland Finance Ltd. (HLFL) promoted by Ashok Ley- land commenced its operations in March 2010. HLFL now has operations in 440 locations with an employee strength of 1,199 (588 in 2010). In 2011-12, HLFL contin-

36 MOTORINDIA l September 2012

vehicle zone (cover story)

launch the wheel loader this year. Automotive Infotronics Ltd., the 50:50 joint venture with Continental AG, aims to become an innovation centre for delivering automotive infotronics solutions at value price points. The JV showcased its capability and products like the Telemat- ics OBU (On-Board Unit) at the Continental booth at Auto Expo 2012 in Delhi to fleet operators, IT/ BPO personnel, transporters, etc. The company is working with several OEMs for both OEM and aftermarket solutions. Albonair GmbH, Germany, was established with the vision of being a complete SCR solution provider for reducing automotive emissions. The displayed were well received by 2011, and TS 16949, ISO 9001 and company is actively marketing its customers. ALDS which exhibited ISO 14001 Surveillance Audits have products to global automotive and a Light Tactical Vehicle on the new been successfully completed. construction equipment OEMs and COLT platform is in discussion for Defiance Technologies Ltd. is holding business discussions with technical collaboration with over- a leading provider of engineer- various global OEMs. With increase seas producers of equipment. ing, ERP and IT services to global in demand due to stricter emission Ashley Alteams India Ltd. customers leveraging the Global norms, Albonair is expanding its (AAIL), the 50:50 JV partnership Delivery Model. Headquartered in production base in Germany and In- between Ashok Leyland and Al- Chennai, Defiance has world-class dia. In Germany, it has received the teams OY, Finland, aims to be a development centres in Chennai quality certificate ISO 14001. world-class aluminium die-casting and Bangalore in India and state-of- Ashok Leyland Defence Systems manufacturer and become a ‘partner the-art testing facilities at Troy and Ltd. (ALDS), the newly-formed as- of choice’ for a customers by pro- Westland, Michigan. Apart from sociate company, will have greater viding innovative product solutions. serving many global MNCs in India focus on addressing the opportuni- AAIL has set up an electroplating and abroad, the company is also pur- ties in the Indian and overseas de- facility which is now ready and un- suing many significant opportunities fence markets. ALDS participated der evaluation. Its surface coating from leading companies, including in DEFEXPO’12, and the vehicles facility was inaugurated in August multi-country, multi-lingual Web Content Management System mi- AVIA Ashok Leyland Motors (AALM) in Prague has been producing trucks gration. in the total weight class of 6.5 to 12 tonnes. In 2011, the Letòany manu- The way forward facturing plant produced 600 trucks for the markets of Europe, the US, Though the Indian CV market and Asia. The company recorded a growth of 34 per cent during this year. continues to grow, reduction in load This increase was primarily attributable to recovery in Eastern Europe, availability due to industrial slow- expansion into the Commonwealth of Independent States and the Middle down, increase in interest rates and East. Avia is expanding the market reach further to Latin America and fuel price increases could dampen the US. demand. Ashok Leyland is address-

38 MOTORINDIA l September 2012 vehicle zone (cover story)

norms such as Euro 5. To capture, measure and address strategic as well as operational risks, the company has created an Enterprise Risk Management function. Having completed the first round of risk assessment, it has prepared a dashboard to track movement on these risks. Measures to be taken have been identified for risk mitigation and incorporated into the company’s operating plans. Going forward, quantified risk metrics will be tracked by the risk management function and the Audit Committee and action taken based on it. The tepid economic environment, as well as the high base, is bound to have an impact on TIV in 2012-13. Several industry ana- lysts have projected growth rates ing this through continued thrust on engineering and alternate sourcing at 3-8 per cent, while SIAM has pro- international markets and on non- to sustain profitability to the extent jected an annual growth rate of 5-7 cyclical businesses such as spares, feasible. per cent for medium & heavy duty defence and engines. Further, its Legislation would continue to put vehicles and about 14-16 per cent entry into the relatively less volatile pressure on improving the technol- for light commercial vehicles. LCV business will further de-risk ogy resulting in higher investment Ashok Leyland seems to have the the business. The company is also and product cost. To address this right balance to keep up its growth continually optimising fixed costs as issue, its associate company Albo- curve with its presence in various well as working capital, to stay pro- nair is working on a competitive business areas. However, in the tected in case of a downturn. In case emission treatment system. In ad- coming years, all eyes will be on of surge in demand, it has adequate dition, the company has proactively the M&HCV business which is the capacity to manufacture the vehicles launched programmes with its stra- company’s primary focus area. The and engines required for the busi- tegic partners to develop power- domestic market in the segment is ness. trains to meet upcoming emissions going through a massive global in- Further, Ashok Leyland is review- vasion with nearly half-a-dozen new ing the production plan at regular Ashok Leyland has also en- players coming in. intervals and has the ability to add sured that all its upcoming Ashok Leyland has been a long- modules of capacity at short cycle products meet all norms ex- time No.2 in the Indian commercial times to meet demand increases. To pected in the near future, such vehicle segment, and it will be in- mitigate any risks due to material as the bus body code safety teresting to watch how the company cost increase, the company contin- norms for trucks and upcoming adapts its approach to survive the ues to work on material cost opti- requirements for on-board di- growing market competition. misation through deep dives, value agnostics. w

40 MOTORINDIA l September 2012 component zone NORMA India’s expanding customer base Upcoming Pune plant to further boost sales

From left, Mr. Chandan Sovani, Business Development Head (EJT), Mr. Sacheen Lathkar, General Manager- India, and Mr. Ajit Wankhede, Business Development Head, Norma Group Products India Pvt. Ltd., at the company plant NORMA Group Products India tivities as well as rapid expansion Excerpts: Pvt. Ltd., a wholly-owned subsidi- of its customer base in the country. MOTORINDIA (MI): To begin ary of the NORMA Group, offers In a free-wheeling discussion with, kindly give us an update on a variety of products like clamps, with MOTORINDIA, Mr. Sacheen Norma’s journey in India since connectors and fluid systems for Lathkar, General Manager, NOR- your entry in 2009. industries. The company is ramp- MA India, not only explains a Sacheen Lathkar (SL): ing up its operations by investing number of vital points related to NORMA India, founded in 2008, in a new facility in Pune. With the the company raised, but broadly commenced production in Pune as localization of customer services in outlines the production technology, a 80:20 joint venture with Taurus India, the company expects a posi- capacity hike, export performance Flexibles, a manufacturer of hoses tive development of its business ac- and prospects, etc. for commercial vehicles. In 2011,

42 MOTORINDIA l September 2012 component zone

The NORMA Group in India has been exceptional. We have grown significantly year over year. Being a technology-driven partner, we have established ourselves with major Indian OEMs within a short span of time. Currently we are driving our Distribution Services activities by setting up a strong distribution network that involves our distribution centre and dealership co-operation. Providing a uniquely wide range of engineered joining technologies, the group is a one-stop shop to customers across all industries. MI: What is the current product range you offer to the automotive industry? SL: The NORMA Group offers all product categories to the automotive industry: clamp, connect and fluid. This includes plastic fuel lines, transmission oil cooler tube systems and other fluid systems, quick connectors and worm-drive hose clips for charge air and exhaust systems. NORMA Group product solutions help make engines lighter in weight and reduce assembly time. Due to tighter emission standards for the automotive industry and other sectors, the demand we decided to take over the 20% nylon instead of steel tubes with a for the group’s engineered joining share of our joint venture partner view to reducing weight and emis- technology is growing consistently. and to invest in a new site. NORMA sions. NORMA India now supports These standards also apply increas- India manufactures and provides several Indian and foreign OEMs ingly to the Indian market, which joining solutions to OEMs such as with its unique Engineered Joining offers considerable growth poten- automotive and industrial clients. Technology providing solutions for tial. The group products also help We manufacture fuel line assem- commercial and passenger vehi- customers to comply with tighter blies, crankcase ventilation sys- cles, agricultural and construction emission norms (Bharat Stage V tems, urea lines, vent lines, clamps equipment, trains, shipbuilding, norms). and connectors to a wide range of aviation, infrastructure and water MI: Do you have any import- industries. NORMA introduced pipelines. substitution products on offer?

MOTORINDIA l September 2012 43 component zone

SL: NORMA India has success- ered. needs. Besides serving our local fully localized one group product NORMA India is a single source Indian clients, we will leverage the family for the Indian market by to customers such as VW and Fiat new plant’s capacity in order to de- the brand TERRY. There are a few for their fuel line applications. liver our joining technology solu- more products in the pipeline for The company is also expanding its tions to our customers around the localization during Q4 2012 – Q1 share of business with other OEMs globe. 2013. like M&M, Ashok Leyland-Nissan, MI: How have the last year and MI: What is the share of your Cummins, Kirloskar, etc. the first half of this year been in automotive business as between MI: An update on the new Pune terms of numbers? Could you OEMs and the aftermarket? Are plant. How is the work progress give us your turnover figures and you a single source of supply for and when will it be operational? targets? any company? What product range will it make SL: The year 2011 was an out- SL: In 2011, NORMA Group and what capacities does it have? standing one for the NORMA products sold directly into passen- SL: With the new plant, the Group. We had set new sales and ger vehicles contributed around 28 NORMA Group is enhancing its earnings records during the year. per cent of global sales. Including production capacity to keep pace In the first quarter of 2012, we re- commercial vehicles, indirect sales with the growing Indian market ported a rise in sales and earnings, and sales to the aftermarket, the demand for connectors and joining thereby continuing the growth mo- total contribution is estimated at elements. Production is expected mentum. around 40 per cent. to start in October. The new plant NORMA Group’s steady growth The NORMA Group serves cus- is expected to increase the group’s shows that it is moving the right di- tomers from both automotive (pas- production capacity fivefold. rection and that its business model senger and commercial vehicles) MI: How are the export pros- is working most successfully. We and non-automotive sectors such as pects for your products made in agricultural and construction ma- India? chinery. Our clients include Mahin- SL: India’s dynamic market of- dra & Mahindra, Fiat, Volkswagen, fers us huge growth opportunities. Ashok Leyland, Kirloskar Group, Our stronger local presence Cummins Engineering, M&M brings us closer to our clients Tractors, etc. in India and gives us the As part of our growth strategy for opportunity to meet the Indian market, we are also ex- their individual panding our distribution network. Now wholesalers, suppliers of spare parts to OEMs and hardware stores in eight States have had access to NORMA Group products. Since December 2011, the group has being consistently adding to its local distribution team in order to meet growing demand. With more than 30 distributors, major industrial regions have already been cov-

44 MOTORINDIA l September 2012 component zone

will continue to invest in our coming technology products pany and actively increase capaci- and solutions which ties to ensure further growth. are well-estab- MI: Could you give us a brief lished in the on your current sales and service mature mar- network? How are your expan- kets around sion plans unfolding? the world. SL: Based on many years of ex- MI: Finally, perience, the NORMA Group offers could you up- state-of-the-art technology. NOR- date on your MA India focuses on customizing R&D structure the engineered joining technology for developing In- to the local market. We achieve this dia-specific products? by local manufacturing and by dis- SL: The NORMA Group tributing our products and solutions provides engineered solutions tai- them seamlessly into new, innova- via our distribution centre as well lored to the customer needs for re- tive products is a key part of our as various local dealers. ducing emissions, leakage, weight, success. We provide products for NORMA India is currently set- space requirements and assembly current applications to meet the ting up a distribution network time. Compatibility with modular- needs of our customers while keep- across India where dealers of its ized production processes and re- ing an eye on long-term develop- products sell to a wide range of in- duced assembly times of our prod- ments and trends. dustries. NORMA India also cus- ucts help them to optimize their We recognize the needs of the tomizes its technology to suit local production processes. For this rea- market ahead of time and develop Asian markets. This includes local son, we have developed a compre- solutions which can guarantee our manufacturing of engineered join- hensive basic research and devel- customers an advantage in terms opment division. of innovation. Committed teams New legislation has led to of sales employees and technicians lower emissions thresholds with work jointly on these development which our customers have to projects. comply. The only way to We take a flexible and innovative do this is by conducting approach to developing the optimal intensive research and solutions to meet the requirements developing new products of our industrial customers, no mat- and solutions. Against ter whether it’s a standardized join- this backdrop, we work ing element, a multi-component together with our custom- section or a complex piping system. ers to find innovative and NORMA India has recently high-performance joining started “Global Engineering” ac- technology in order to open tivities to support global innovation up new areas of application for projects. We have a team of six en- the existing products. The abil- gineers involved in R&D activities ity to directly address the require- and expect the team to be strength- ments of the market and integrate ened in due course. w

46 MOTORINDIA l September 2012

vehicle zone M&M vehicle sales spurt despite several odds

The company recorded total sales of 1,22,571 vehicles, as compared to 95,238 vehicles in the previous year, registering a growth of 28.70 per cent.

The company’s strong results have been attained through a disciplined strategy, cutting costs, curbing ex- penditures, and maintaining growth by meeting the ever-changing consumer demand. However, Mr. Mahindra said, the economic uncertainties of the year under review aggravated further in the current year, with the Indian economy facing a persistent infla- Mr. Keshub Mahindra tion, a volatile currency, lower GDP The year 2011-12 was a very dif- gone by. growth of below six per cent, high ficult and challenging one. There The company acquired majority interest rates, the price of oil re- were problems during the year stem- holding in South Korean SsangYong maining high, and the threat by the ming from the state of sovereign Motor Company and opened its rating agencies to downgrade the debts of many advanced economies, world class engineering and re- country’s rating. turmoil in the Middle East, weaken- search and development centre, the The risks of a full-fledged crisis ing global economic environment Mahindra Research Valley (MRV), in Europe remain high, Greece is in and India’s rising fiscal and current in Chennai. Spread over 125 acres, a dire state, Spain is showing signs account deficits. this facility was set up at an invest- of recession and Italy is showing Addressing the 66th annual gen- ment of Rs. 650 crores and presently unacceptable figures of stability. eral meeting of Mahindra & Mahin- has a workforce of 1,500 persons. China too is also showing signs of dra, Mr. Keshub Mahindra, the out- Gross revenues and other income slowing down and oil markets are in going Chairman, said that in spite of the company for the year, together a flux. At the same time, weak do- of the turbulence and uncertainties, with MVML, is Rs. 10,003.9 crores mestic macros – high inflation, large the company business continued to as against Rs. 7,400 crores during fiscal and current account deficits – grow. In the automotive sector, it the corresponding period last year, continue to constrain policy actions registered a growth of nearly 29 per showing a growth of 35.2 per cent. critical to supporting growth. cent, while in the case of tractors, Net profit of the quarter is Rs. 778.5 According to Mr. Mahindra, the growth was 10 per cent despite crores (Rs. 618.3 crores), a growth though the future indeed looks the sluggish conditions in the year of 25.9 per cent. challenging, there is hope that in

48 MOTORINDIA l September 2012 vehicle zone

the latter part of the current year, of creating an environment in which to accept the position of Chairman one might see a change leading to the economic growth of the country Emeritus, which I do with humility. growth and containment of revenue continues. The Board has selected Mr. Anand and fiscal deficits. “I also expect that “After having enjoyed the privi- Mahindra to be the next Chairman. the Government will move to clarify lege of serving as a Director of your As you all know, Anand is a leader the uncertainties in many sections company for 64 years, and the hon- of great acumen, moving in step of our economy and to bring back our of being Chairman of the Board with technological advances and, focus on providing a platform for for 48 years, I have decided to hand above all, passionate about preserv- the growth of our economy which over the baton to the younger gener- ing what is ‘core’ to the company – is critical for bettering the quality of ation. I am deeply moved by the sen- integrity, ethics and inclusiveness”, life of the people. All political par- timents expressed by the Board and Mr. Mahindra added. ties should move with one objective the management in requesting me w

Navistar to use Cummins engines for trucks Navistar International Corporation has announced that it is set to deploy Cummins 15-litre engines in its own trucks and use Cummins Emissions Solutions’ DEF-based aftertreatment system, combined with the company’s own in-cylinder engine to create ICT+ for its existing MaxxForce engines. The two companies have signed a non-binding memorandum of understanding (MoU), and Navistar expects that by combining the two systems, it will be able to meet 2010 US EPA emissions regulations and position the company to meet greenhouse gases (GHG) rules in advance of the 2014 and 2017 requirements. Navistar plans to offer Cummins ISX15 engines as part of its North American on-highway truck line-up beginning January 2013 and to begin the introduction of ICT+ in its MaxxForce 13-liter in early 2013. It also provided an outlook on the third quarter of 2012, and withdrew its full-year guidance based on its transition to ICT+. The company’s overall market share for the fiscal third quarter 2012 is seen to remain flat at 17-18 per cent for Class 8, 35-36 per cent for Class 6-7 trucks and at 48-49 per cent for school buses.

50 MOTORINDIA l September 2012 vehicle zone Anand Mahindra appointed Mahindra Group Chairman

Mr. Anand Mahindra, Vice Chairman and Managing Director, Mahindra & Mahindra Ltd., has been appointed Chairman of the Mahindra Group. He takes over from Mr. Keshub Mahindra who has retired after 48 years at the helm and will continue to guide the group as Chairman Emeritus on the request of the Board.

Mr. Anand Mahindra was appointed Managing Director of Mahindra & Mahindra Ltd. in 1991 and was given the additional responsibility of Vice Chairman in 2003. Under his stewardship, the $15.4 billion group has evolved into a socially and environmentally responsible global federation of companies with a leading presence in each sector in which it is present. Mahindra is present across the automotive spectrum, from two-wheelers, three-wheelers, commercial vehicles, SUVs and MPVs to sedans, tractors, and even powerboats and aircraft. In addition, the group’s diversified nature of business spans many frontiers – automotive components, finance, insurance, IT, retail, real estate, hospitality, logistics and aftermarket, to name a few. Fortune magazine has named Mr. Anand Mahindra one of the top 25 most powerful business people in Asia for 2011. During his tenure, the Mahindra Group has also grown inorganically, seizing opportunities across the globe. Recent acquisitions include Ssangyong Motors, Reva Electric Car Company, Satyam Computer Services, Aerostaff Australia and Gippsland Aeronautics, among others. A thought leader in Indian business, Mr. Anand Mahindra serves many industry confederations, national and international, and was co-Chair of the WEF Davos in 2009. He represents In- dian industry at several global meets. Appointed in November 2011 as Honorary Ambassador of Foreign Investment Promo- tion for Korea for a period of two years, he also serves as a member of the International Advisory Board of Singapore’s Economic Development Board. He also served on the Boards of the National Stock Ex- change of India (NSE) and the National Council of Applied Economic Research (NCAER), and was President of the Confederation of Indian Industry (CII) in 2003-04 and also President of the Automotive Research Association of India (ARAI). w

MOTORINDIA l September 2012 51 component zone HJS footprint in India positively essential

An exclusive interview by MOTORINDIA

HJS Emission Technology, a TORINDIA, Mr. Peter Neumann, German manufacturer and innova- Director Sales - Indian Projects, ex- tor of emission control equipment, plains in detail the company’s ambi- operational in India since 2008, tious plans. has recently moved its offices from Excerpts: Bangalore to Gurgaon (New Delhi) MOTORINDIA (MI): HJS be- where its subsidiary HJS Emission came functional in India in 2008, Technology India Pvt. Ltd. uses the while HJS Emission Technology location also for purchasing activi- India Pvt. Ltd. was established ties for its European business. in March 2011. Please give us an HJS Emission Technology India update on your Indian operations benefits from its German parent thus far. company with over 35 years of ex- Peter Neumann (PN): It is perience as an EGT systems suppli- true that HJS started the process of er. Over 500 employees are engaged exploring the Indian market at the in developing and manufacturing close of 2008, which was then fol- original and retrofit equipment for lowed by a step-wise setting up of passenger cars and commercial ve- its Indian subsidiary in Bangalore. hicles as well as for a wide range of Today, just two years down the line, non-road mobile machinery and sta- we are happy to announce that we tionary applications. have set up our own warehouse in In an exclusive interview to MO- Gurgaon, with its close proximity to Mr. Peter Neumann Director Sales - Indian Projects Delhi, and also some of our customers and associates. HJS is delivering a series products to two OEMs already and has projects running with many other customers. The pace of business is no doubt a calculated and moderate one, since the nationwide move from BSIII to BSIV legislation is still u n d e r w a y . But, neverthe-

52 MOTORINDIA l September 2012 component zone

less, HJS is increasing its customer base in the “On-road” and “Non- HJS tailor-made products for India road” segments, the latter being for In India HJS is offering Partial Flow SMF (Sintered Metal Filter) and the export market in Europe and the complete systems to achieve BS IV legislation commercial vehicles. US. It has already signed contracts Further HJS has been participating in development projects with all ma- for starting local production in India. jor OEMs of vehicles and diesel engines for emission control. A new MI: With expertise in exhaust Partial Flow Particulate Filter for the small 1&2 cylinder diesel engine after-treatment systems for over segment will be launched by the end of 2012. This new development three decades and having studied will broaden the application range for open particulate filters from 5 kW the Indian market for few years, engines up to 350 kW. All these Partial Flow SMF sizes can be used un- what is your strategy for the mar- coated or with a catalytic platinum coating. Single housing design which ket? includes an upstream Diesel Oxidation Catalyst (DOC) and the filter in PN: We learned a lot over the one box and a two-box housing design, where the DOC and the Filter are years to make it easier and more cost canned in separate housings, are possible. effective, thanks to our prior experience in Europe where we have been successful with our products during the shift from Euro III to Euro IV. HJS is following a long-term strategy to bring products to India which were already developed in Germany, but will adjust these products to the Indian market in technology and cost, without compromising on quality. Therefore, localization is one major step together with the common development of customer need. Depending on market increase for BS IV and BSV products, the company will also establish the required resources in India to provide the 3&4-wheeler segment which is ness growth. With the increase in the most effective service to cus- very important in India but with no numbers for BS IV vehicles in India, tomers. presence in Europe in significant our expansion plans will automati- MI: Considering the host of new numbers. For this segment, we are cally follow. As mentioned earlier, models developed by manufac- developing particulate filters. An- everything is prepared to start pro- turers, specifically for the Indian other aspect is the very cost sensi- duction in India, and discussions are market, are you looking at India- tive market. Therefore adjustments on, to be ready for higher quantities. specific products and solutions? to the products are required to make MI: Has HJS achieved PN: Yes, India-specific prod- them competitive. breakeven in its Indian opera- ucts and solutions are our impor- MI: How are your expansion tions? And what, according to tant concern. We are working on plans unfolding? Could you give you, have been the high-points in the development of new products us an update on your venture to your Indian run till date? for the Indian market, especially in set up a manufacturing base in PN: As mentioned above HJS has market segments which do not ex- Delhi (NCR)? a long-term strategy. When we are ist in Europe. A good example is PN: Expansion depends on busi- talking about quantities in BS III

54 MOTORINDIA l September 2012 component zone

and BS IV market, more than 95 per Catalyst. And our footprint in India operations. What are your plans cent of the commercial vehicles will is positively essential! on these lines? Please throw some be sold in BS III. The business with MI: A few words on your pres- light on your R&D infrastructure BS IV vehicle is yet to start in inter- ence in the aftermarket segment. and also on patented products or esting quantities, and clear bound- How have your products fared solutions, if any. ary conditions in legislation is still against competition? PN: Depending on business in- on its way, as to when BS IV will PN: As mentioned above, the crease and customer requirements get into force, nationwide. product is made to achieve BS IV we establish resources for develop- A large percentage of our products legislation limits. The market just ment and application locally. At the are designed to meet BS IV legisla- started using these products and af- moment the product development tion. But the future potential of this termarket is not in focus today. It is is based in Menden, Germany, and segment looks very encouraging also clear that our products will be testing will be done at the custom- and, therefore, many of our devel- sold through OEMs to the aftermar- er site. This split is working very opment and application projects are ket because of the present contract well, and we do not see any need in progress. But in spite of all chal- situation and since many of the to install a local R&D and support lenges, HJS has now sold over the products are customized. immediately. With increasing busi- last 1½ years approximately 3,000 MI: Many German companies ness this will change for sure. HJS particulate filters and filter systems have established their R&D cen- is prepared to support its customers which include a Diesel Oxidation tre in India to focus on Indian locally, in future. w

MOTORINDIA l September 2012 55 vehicle zone Force Motors targeting fast-growing segments

Traveller-26 and a few more new products in offing

Force Motors, known for its iconic brands such as Tempo, Matador and Traveller, is planning to roll out a new range of products soon. The company registered an average growth of around 30 per cent in the first quarter of 2012-13 as compared to the same quarter the previous fiscal. With its existing products such as the market-leader Traveller and the Trax doing very well, the company is keen to enter the rapidly-growing 26-seater bus segment with the Traveller-26. The huge SCV project up its sleeve could give the company a good share of the fastest- growing segment in the country. Mr. Prasan Firodia, Managing Director, Force Motors Ltd., talks to MOTORINDIA on the new developments the company is working on by way of expansion of overall operation. Force Motors has many segments to venture into but is quite conscious of the steps being taken. Says Mr. Prasan Firodia: “There will be strong growth in the SCV, MHV and HCV segments without doubt. It is important for us to decide our focus areas and identify key segments. The van segment will definitely be one of them. This year, we are investing a total of Rs. 500 crores on different projects.” Promising product The Traveller-26 which comes as an extension to the existing Traveller range could certainly boost the company business. The existing Traveller model is available in 13 to 21-seater configurations, giving Force a 60 per cent Mr. Prasan Firodia, Managing Director, Force Motors Ltd.

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share in the relevant market with a The vehicle, powered by a Daim- vehicle in its category with Cathodic size of 25,000 vehicles annually. ler-licensed common rail, turbo in- Electro-deposition (CED) painting. In contrast, the size of the 26-seat- ter-cooled engine, delivering 130Ps The company’s latest (sixth genera- er segment is around the targeted with 295 Nm torque, also comes tion) dip painting plant ensures the 70,000 vehicles per year. The new with a Daimler-licensed G-33/5 highest level of rust protection. vehicle will roll out of the Pitham- gearbox that offers low friction and The vehicle also offers the low- pur plant with its monthly produc- smooth transmission. It also has the est floor height and lowest centre tion capacity of 700 units. highest power to weight ratio in its of gravity, thereby ensuring best-in- category. The best-in-class fuel ef- class handling and stability. The ride ficiency lowers operating and main- quality, noise vibration harshness The Traveller-26 has been designed, tenance costs. (NVH) levels and the most modern developed and tooled up in-house by The vehicle boasts of many firsts interiors with 2x2 seating set a new Force Motors R&D. Around 40 vehi- in its category. It has a monocoque benchmark for buses with a seat- cles have already hit the roads for body from pressed steel panels, with ing capacity of 26. Disk brakes on outstanding structural strength and all wheels ensure top-class braking customer trials. unmatched durability. It is the only under all load and operating condi-

MOTORINDIA l September 2012 57 vehicle zone

ity. Its another manufacturing facility is located in Pune. As for the other successful product, the Trax, 1,000 units are produced every month. A variant of the Trax and also one of the Trax Gurkha will be launched soon. Force Motors currently has around 150 main dealers and almost the same number of additional service outlets. At present, exports contribute only around eight per cent of sales, but the company is keen on raising the level by tapping potential markets like Africa and the UAE. The company registered a turnover of Rs. 2,400 crores in 2011-12 and is tions. The company is quite confi- exclusive body shop, paint shop and all set for an impressive growth of dent that the vehicle would be the press shop for the product. The com- 30 per cent this fiscal. With new ultimate choice for the hospitality pany makes its common-rail engine, projects gathering momentum, sector, schools, corporates, BPOs, gearbox and axle at the Pithampur Force Motors is very well focused and for tour and travel fleet opera- plant which would be its focus plant on the highly potential segments in tors. in the coming years, with all main the Indian market. New offerings products rolling out from the facil- w Another new product expected to be rolled out next year by Force In the fast-growing SCV segment, Force offers the Trump 40. With the is a nine-seater van with technical segment evolving well over the last year, the company has plans to de- a license from Mercedes. In fact, a velop a completely new line of products with a new engine, chassis and completely new facility is being set body. If the project gets the management nod, the company would most up at Pithampur for manufacturing likely come up with a new facility for the platform. the van. The facility would have an

58 MOTORINDIA l September 2012 tyres Apollo Tyres’ higher outlay on widening product range

By Onkar S. Kanwar, Chairman, Apollo Tyres Ltd.*

The year 2011-12 has been one of laying a strong foundation to pursue Apollo Tyres’ growth strategy for the next five years. It seemed the perfect time to undertake this exercise, given the uncertainty in the global economy. However, the global and the Indian economy will both recover soon. Growth will be back and so will job opportunities. Overall, Apollo Tyres’ revenues have grown by 37 per cent during the year over the previous one, with profits continuing to remain de- Mr. Onkar S. Kanwar, Chairman, Apollo Tyres Ltd. pressed due to higher input costs. On been deployed across geographies and society, and finally growth to an operational level, the company’s to create higher efficiencies and to achieve these objectives. manufacturing bases in India, Neth- ensure that the customer’s voice is Deepening presence in home erlands and South Africa have un- heard and suggestions implemented. markets dergone substantial investments and There are four strategic directions Through a combination of the product expansion. There has been Apollo Tyres is globally pursuing right products and focus on spe- a restructuring in the critical area of with vigour – deepening its presence cific categories, the company plans research and development to create in the home markets, expanding to further consolidate its position in greater focus and customer-centrici- into new markets, a clear focus on each of its home markets of India, ty. Business Quality as a process has the environment, green technologies South Africa and the European Un-

* A summary of the speech delivered at the 39th AGM of Apollo Tyres Ltd. at Kochi.

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ion. This would be balanced with a manufacturing bases. focus on profitable segments of the In each of the home markets, This presupposes a firm commit- tyre market. For example, in India Apollo is growing at a rate ment to further expand the product where the company is already the higher than the local industry range, sales and service network and No.1 tyre manufacturer and a leader rate, especially India. Current- also to a substantial capital expendi- in both passenger car and truck-bus ly Apollo tyres are sold in over ture to create fresh infrastructure of radial tyres; the focus would be on 118 countries. new manufacturing bases and peo- widening the gap between the com- entire passenger tyre Research and ple. Over the short term, the capital pany and its competitors with a larg- Development Centre has been relo- outlay might put further pressure on er and more meaningful portfolio cated to Netherlands. This reorgani- margins. However, this is a much- for customers. This would include sation will enable the company to needed expenditure to enable the the entry of the Vredestein brand to address evolving car and customer company to build a future of growth. take on a leadership position in the requirements more effectively. As The company investments in com- ultra-high performance tyre and car hubs, they will work with country- munity development, education and segment. This would also include level research centres to further cus- skill building of young people have a higher penetration of mining and tomise product ranges to address lo- increased 150 per cent during the specialty tyres in South Africa. cal needs actively. year. The company has also started

In Europe, the focus for the next Expanding into new markets setting up driver training schools for two years will continue to be on In each of the home markets, commercial vehicles in India to cre- strengthening the passenger car tyre Apollo is growing at a rate higher ate a strong pool of safety and health brands of both Apollo and Vredes- than the local industry rate, espe- conscious drivers. tein. Currently in Europe, demand cially India. Currently Apollo tyres The company core duty is to ag- outstrips supply. Therefore, the are sold in over 118 countries. The gressively pursue business growth, company is actively looking at ways company has been seeding many tempered with a keen eye on the in which it can meet this increasing of these markets through exports society’s well-being. This involves European demand for passenger car for some years now. But over the appropriate investments in people, tyres. course of the past year, it has iden- processes and plants for future busi- To lend greater focus to these tified the specific geographies of ness needs. And, of course, Apollo markets, the company’s commer- the Middle East, South-East Asia, Tyres is ready to move to the next cial vehicle Research Centre is be- Australia and Brazil as potential level in its journey around the world. ing recreated in Chennai, while the future home markets, some with w

MOTORINDIA l September 2012 61 vehicle zone Hinduja Automotive’s new initiatives paying off

An exclusive interview with Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive

duja Automotive and pointed out that though there is an overall drop in medium and heavy commercial vehicles, sales of Ashok Leyland’s first ever LCV, the DOST, reflected an upward trend. In fact, DOST, which is considered his pet project, has proved a runaway success within few months of its launch. Inter- estingly, DOST has emerged the most popular and leading brand in six out of the eight states where the product was rolled out. Currently, the vehicle has a waiting period of three months, as the company ramps up production capacity to meet the growing demand. On the issue of product diversifi- cation, Dr. Sumantran said the com- Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive pany foray into the Defence vehicle Though there is widespread con- be restored to health sooner than segment with the Stallion model has cern over industrial slowdown hit- later. not only been a welcome expansion ting all the industries, the auto sec- This optimistic view came from for Ashok Leyland, but also made tor, for one, has its special scope to none other than Dr. V. Sumantran, the company emerge the second bounce back with redoubled vigour. Executive Vice Chairman, Hin- most successful nameplate holder This is more than evident in the duja Automotive, and also the Vice after Hammer. Today, there are as growing freight movement with its Chairman of Ashok Leyland, while many as 70,000 Stallion vehicles in closer link to GDP. A possible 6 reacting to the fast-changing de- the Indian Army alone, apart from a to 6.5 per cent growth in GDP and velopments since last few months few vehicles supplied to the United the recent portfolio changes in the which have adversely affected the Nations and Thailand. Union Ministry are pointer to rapid economy. Further, according to him, the economic growth with greater em- In an exclusive interview to the Hinduja Group has also gone in for ployment opportunities, more per MOTORINDIA Editor & Publisher, vertical expansion as in the case of capita buying power, etc. The over- R. Natarajan, Dr. Sumantran, an au- Hinduja Foundries by setting up a all scenario would change for the tomobile expert himself, referred to state-of-the-art plant at Sriperum- better and the Indian economy will various key initiatives taken by Hin- budur, introduction of indigenously

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vehicle zone

developed Neptune series engines, customer would receive a call on the fully integrated and sophisticated expansion of transmission products third as well as the 30th day of pur- environmental system currently manufacturing at its Bhandara plant, chase of the vehicle, which is a first made by Albonair. The company as well as establishing high pressure of its kind in the commercial vehicle has already obtained a few patents aluminium castings through Al- segment. for its innovative product and has teams. Similarly, in order to expand Moving on, with an impending also has bagged major contracts its global footprint, the company massive expansion in the country’s from a leading commercial vehicle had acquired Avia in the Czech Re- construction and mining segment, manufacturer and an off-highway public and recently bought out ma- Ashok Leyland had decided to for- vehicle manufacturer in Europe. jority stake of 76 per cent in Optare ay into the segment by establishing Apart from providing CAD/CAM in the UK. a joint venture with John Deere of design development, Defiance pro- Later on, the company felt the USA. Following the good response vides an array of solutions to cus- need for its own LCV platform and to the Leyland Deere backhoe load- tomers such as Telematics, Analyt- decided to establish a joint venture er, the company is now working on ics, Bluetooth, etc. The company with Nissan of Japan. The JV’s first a wheel loader as its next product. also does market research for Nissan LCV product has not only been suc- Outlining the long-term prospects at the global level through its Social cessfully conceived with its indig- for the Hinduja Group business ac- Media Analytical Centre which is enous design, higher payload capacity and better fuel economy, but has also been very well positioned to meet the requirements of the Indian market conditions. The success of DOST is mainly due to the company’s highly skilled engineers who had developed the product three and a half tivities, Dr. Sumantran referred to basically used for tracking customer years ago with strong support from the group’s entry into three major opinions at various levels, and has the Nissan management team. critical areas – electronics, environ- become a rich source of instant feed- As for the sales strategy of DOST, mental technology and IT data link- back. Ashok Leyland had identified an en- age. For electronics, it has a tie-up In conclusion, Dr. Sumantran ob- tirely different customer approach with Continental of Germany; for served that, with increasing compe- that offers a car-buyer experience environmental technology it has es- tition in the commercial vehicle seg- to an LCV customer. For instance, tablished Albonair in Germany; and ment in the country, acceleration in it has set up a separate call centre Defiance Electronics has been set up technology growth and product ma- facility through which the DOST to meet the requirements of IT and turity as well as a well-designed de- data linkages. All the three com- livery system, it will be the end cus- Started with just 23 engineers for the panies now meet different require- tomers who would benefit from the development of DOST, today the com- ments of the fast-growing Indian growing competition, as they would pany has 450 engineers extending auto sector. have much better quality products their all-round support for the product Stressing the need for cost control, on offer, which would certainly be a in India. he cited the economically priced, customer delight. w

64 MOTORINDIA l September 2012 component zone

KCI’s modern bearings plant coming up in Gujarat

Record aftermarket sales in a short span of time

Gujarat, from where Mahatma Gandhi hailed offers a lot of manufacturing opportunities. In fact, the State is known as a major hub for production and export of a variety of industrial and automotive products, mainly bearings. For instance, KCI Bearings (India) Pvt. Ltd., promoted by the well-known Gadani family, was set up at Surendranagar 35 years ago. However during last two years under able leadership of, its Managing Direc- tor, Mr. Hasmukh Gadani the automotive division is growing at more than prevailing Industry growth rate.

Outlining the company’s journey cle manufacturers like Tata Motors, as well as success over the years VECV, Mahindra Navistar, MAN in an interview to MOTORINDIA, and Force Motors, apart from meet- Mr. Rajeev Hiwale, Vice President ing the requirements of Maruti, Es- - Sales & Marketing, KCI Bear- corts, ITL , ZF, Rane-TRW, Lucas ings, said that, though started in a etc. In fact, for the Tata Motors humble way, the KCI bearings have Gear Box Division, HVTL Jam- today become one of the well ac- shedpur, KCI has emerged one of cepted and preferred brands in the the most preferred suppliers, and Mr. Rajeev Hiwale country. The company’s overall has even won overall recognition, Vice President - Sales & Marketing performance is well reflected in the including the Value Engineering bearings for both automotive and growing acceptance of its products Award from Tata Motors. KCI has textile sectors, the new plant will by the major automobile OEMs in also received Best Supplier award be fully dedicated to automotive the country. Today, out of total 40 twice from Rane TRW in the year bearing manufacturing with semi crore revenue for the year 2011-12, 2007 & 2012. automation. The company endeav- Rs. 24-crore sales revenue came Expansion plan our is to supply high technology from the OE business and CV seg- With growing demand for KCI products at sustainable cost. It has ment accounted for almost 70 per bearings in the automotive sector, successfully developed Needle cent, of it. the company is setting up a mod- Roller bearing cages from com- Currently, KCI supplies Needle ern plant at Surendranagar under its pound material of engineering plas- roller and Cylindrical roller bear- expansion plan. Though the mother tics, like PA 46 for the first time, ings to almost all commercial vehi- plant at Surendranagar produces which can make the product, cost

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effective and lighter but matches ket requirements, KCI has already nology of the company, which the performance of steel cage bear- introduced 450 different bearings, also ensures it never compromises ing. This explains the company’s including Needle Roller, Taper roll- quality to reduce the cost. Of the business philosophy and logo ‘De- er, Clutch and Kingpin bearings. In planned overall sales revenue, the signed for Life’. order to become closer to custom- OE and aftermarket would account The new plant, which is being set ers, the company has opened offic- for 40 per cent each, and exports up at an outlay of Rs. 10 crores will es in different parts of the country. for the remaining 20 per cent. The be ready for production by the third Currently, with the dedicated mar- main export markets for its bearings quarter of this year. It will have keting team and brand loyalty, the are Sri Lanka, Nepal and Bangla- an overall capacity of 15 million company has established a wider desh, and the company is trying to bearings per annum to be attained network of 120 dealers and stock- expand to other Asian markets such within the first six months of its op- ists all over India, which reach out as Malaysia, Indonesia, as well as eration. to about 5000 retailers directly. European nations. A flying start in aftermarket Since the southern States are more The success of aftermarket sales According to Mr. Hiwale, though quality conscious, the company had is mainly attributed to the manage- the KCI foray into the automotive initially started with aftermarket ment’s dedicated efforts of grass aftermarket business by establish- sales in south to prove the quality root canvassing to generate de- ing the marketing headquarters in of the product. After its success in mand for its products and also by Pune is less than two years old, it test marketing its bearings in this constantly raising its overseas mar- has had its flying start in the sense region, KCI expanded the dealer ket share. Though known for its that the company’s sales revenue in network and product availability to low-profile, conservative approach, the aftermarket segment has gone cover the other parts of the country. the company is now coming out in up from just Rs. 3 crores in the first As a testimony to product quality, open more aggressively by creating six months to Rs. 8.5 crores in one KCI happens to be the only manu- greater awareness of its products year. For the current year, the com- facturer offering a warranty for its through participation in different pany is aiming at a Rs. 14-crore bearings up to two lakh kilometres fairs and exhibitions, to consolidate revenue from aftermarket bearing in the aftermarket, a rare practice its brand image in the market. sales. among companies. This clearly In order to serve the growing mar- brings out the quality-driven tech- w

MOTORINDIA l September 2012 67 vehicle zone

Eicher sales, profit up despite market challenges

Eicher Motors Ltd. (EML) registered total income from operations at INR 3,253.2 crores for the half year ended June 2012. Operating EBIDTA was INR 319.7 crores and PAT INR 276 crores. For the Q2 ending June 2012, total income from operations was INR 1,585 crores, with an operating EBID- TA of INR 139.5 crores and PAT of INR 112.6 crores. Speaking on the results, Mr. Siddhartha Lal, Man- aging Director & CEO, Eicher Motors Ltd., said: “At Eicher Motors the last quarter has been very significant both in terms of strategic direction and focused execution. Our continued focus on product strategies and “VECV’s Eicher Trucks and Buses Division continues to grow even when the industry at large has slowed down due to the tough economic environment. In Q2 2012, ETB has registered a volume growth of 8.8% to outpace the industry that has dropped by 11.3%. This surge is attributed to our focused strategy of driving growth and improved market share in the heavy duty and bus segments that has particularly done well for ETB in this Mr. Siddhartha Lal quarter.” Managing Director & CEO, Eicher Motors Ltd. – Mr. Siddhartha Lal

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operational efficiencies in both the itable growth and value creation for manufacture and sell a full new businesses – VECV and Royal En- our stakeholders. As a strategic ini- range of personal vehicles suitable field – has helped us achieve growth tiative in that direction, the company for India and other emerging mar- in sales and profits, despite challeng- signed in July an equal representa- kets. Currently, we are present in the ing market conditions, especially in tion (50:50) joint venture agreement commercial vehicle and motorcycle commercial vehicles. Our half-year- with Polaris Industries Inc. to set up categories. The collaboration with ly total income grew by 22.5% and a greenfield project. The joint ven- Polaris will allow us to enter into a profits after tax grew by 15.7%.” ture company will design, develop, new vehicle segment”. w VECV’s Eicher Trucks & Buses Division (ETB) continued its momentum with robust growth figures, selling 11,864 units in Q2 2012 as compared to 10,907 units in the corresponding period last year. In the 5-14T segment ETB has improved its market share to 31.7 per cent in Q2 2012. In the heavy duty segment, it improved its Q2 2011 performance by 35.5 per cent at 1,906 units sold in Q2 2012, thereby improving its market share from 2.7 per cent to 4.8 per cent. In the bus segment, ETB’s quarterly volumes stood at 2,784 units being sold in Q2 2012, a growth of 30.8 per cent over the corresponding period last year. The market share in the bus segment in Q2 2012 has gone up to 13.4 per cent from 12.4 per cent in the same period last year. “In Q2 2012, ETB has recorded the highest-ever quarterly market share of 4.8% in the heavy duty segment. Further, in the bus segment ETB has registered the best-ever quarterly volume with 2,784 units being sold. The quality and reliability of our products at ETB has helped us secure a big order of 1,019 buses from the Gujarat State Road Trans- port Corporation in June 2012”, he added. “At Eicher Motors Ltd., we are committed to exploring and pursuing opportunities for long-term prof-

MOTORINDIA l September 2012 69 component zone

Bosch’ new injection system to cut CV fuel use, emissions

Bosch is increasing the maximum Another advantage of the new injection pressure of its common- system is an improved diagnostic rail injection systems for commer- capability. Thanks to an integrated cial vehicles to 2,500 bar. Higher pressure limiter, a comprehensive injection pressures means lower fuel system check can be carried out consumption and emissions. Even a when the vehicle is being serviced. one per cent reduction in fuel con- Combined with exhaust gas recir- sumption of heavy commercial ve- culation and SCR systems, Bosch hicles means a more than one metric high-pressure injection systems

ton reduction in annual CO2 emis- make a significant contribution to sions per vehicle. reducing fuel consumption and ni- In its latest variant, the CRSN3- trogen oxides. However, the com- 25 injection system for medium and bustion processes that this involves heavy commercial vehicles deliv- require high injection pressures in ers a maximum injection pressure order to prevent a rise in particulate of 2,500 bar. With its pressure-bal- raw emissions. Common-rail sys- anced interior, the innovative in- tems already deliver high injection jector concept offers an especially pressures in part-load operation, high level of hydraulic efficiency. as the system pressure is generated Since its exterior geometry remains practically independently of engine unchanged, the injector used in the speed. As a result, common-rail die- CRSN3-25 is compatible with its sel engines have high torque even at predecessor system. low rpm. With the CRSN3-25, up to seven will come into force in 2013, as well Bosch injection systems with even individual injections are possible. as other comparable strict standards, higher injection pressures are cur- This increases flexibility in terms of such as US 10 in the US. rently in the pipeline. The company is engine design, promotes lower ex- For heavy duty vehicles, a new also working on additional systems haust and fuel consumption levels, generation of the CPN5 high-pres- to reduce fuel consumption and emis- and results in even quieter opera- sure pump can be applied. In addi- sions. For instance, it has developed tion. Thanks to a software learning tion to generating pressures of up to CNG injection systems for commercial feature, the amount of fuel injected 2,500 bar, it is especially compact, vehicles as well as the Denoxtronic can be adjusted. This makes it possi- robust, and lightweight. The pump and Departronic exhaust gas treat- ble to meet strict emission standards has a service life of 1.6 million km ment systems. It is also active in the over the entire vehicle life cycle, and 15,000 operating hours in off- areas of powertrain hybridization even when annual mileage is high. highway applications. Its service and waste heat recovery systems that As a result, Bosch is making a sig- life is thus longer than that of the serve to recover energy in the exhaust nificant contribution to meeting the average vehicle. tract. Euro VI emissions standard, which w

70 MOTORINDIA l September 2012 applications

TRF targets Rs. 2,500-crore turnover by 2013

Mr. Sudhir Deoras, Managing Director, TRF Ltd.

TRF has emerged a pioneer in The year 2011-12 was marked by acterized by slowing down of over- providing solutions for material a difficult market environment char- all economic growth, high inflation handling equipment and process- impacting costs adversely, foreign ing systems required in infrastruc- Tata Robins Fraser (renamed exchange volatility and high inter- ture development. In quest of rapid TRF in 1984) was established in est rates resulting in delays in deci- growth, the last few years have seen 1962 at a time when Tata Steel sion making and clients suspending the company diversify into automo- had expanded its production project execution in several instanc- tive applications business with stra- capacity to two million tonnes es and almost total choking of the tegic acquisitions and joint ventures. and started feeling that it re- fresh order booking specially during Despite challenging market condi- quired in-house capabilities to the second half of the fiscal. tions, TRF has set ambitious targets, take care of it bulk material- The financial results of the com- envisaging a five-fold growth in five handling needs. The company pany on standalone basis for 2011- years to become a Rs. 2,500-crore was set up as a joint venture 12, despite the uncertain economic company by 2013 with its greater by Tata Steel, Robins Engineers environment, reflected significant focus on material handling and auto and ACC Ltd. (formerly Associ- improvement over the previous year applications businesses. ated Cement Companies Ltd.). with sales at Rs. 802.31 crores (pre-

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TRF’s in-house R&D facility has been approved by the Department of Scien- tific & Industrial Research (DSIR) which entitles the company to tax benefits on R&D expenditure. erates in all these sectors, while new product development and enhancement continues to be a focus area. The port & yard equipment business vious year: Rs. 723.58 crores), a lic sectors. has turned around, and the growth growth of 10.88 per cent. The con- However, some key initiatives in prospects here are very encourag- solidated TRF Group performance the Budget for 2012-13 as well as in ing. TRF’s subsidiaries in the auto- also improved, recording sales of the 12th Five-Year Plan have given motive sector continued to register a Rs. 1,327.41 crores (previous year: rise to expectations that there would healthy growth. Rs. 1,113.56 crores) achieving a be a turnaround in the infrastructure York Group growth of 19.20 per cent. During the sector. Investment in infrastructure In March 2012, York became a year, TRF earned foreign exchange in the 12th Plan worth Rs. 439.32 crores through ex- is estimated at ports, including deemed exports of Rs. 50,000 bil- Rs. 436.44 crores, as against the pre- lion. The Gov- vious year’s earnings of Rs. 461.72 ernment had also crores through exports (including announced a deemed exports worth Rs. 452.76 National Manu- crores). facturing Policy Infrastructure sector with the intent The Indian infrastructure sector, of increasing the in which TRF operates, has passed share of manu- through a difficult period during the facturing in GDP year under review. Key industry to 25 per cent indicators like GDP, inflation, in- within the next terest rates and rupee depreciation decade. With reflected adverse trends resulting in the increased monetary tightening. Land acqui- investments in sition, environmental clearances, the port, power, shortage of coal and rising imported steel and mining coal prices continued to be areas of sectors, the com- concern. This resulted in a number pany is expected of planned investments being post- to make good poned, both by the private and pub- progress as it op-

MOTORINDIA l September 2012 73 applications

wholly-owned subsidiary of TRF. York grew its business by over 36 per cent during 2011-12, achieving sales of Rs. 335.07 crores (previous year: Rs. 246.18 crores). The market share of York improved in all key markets, including Australia, Indo- nesia, South Africa, Thailand, China and India. Two new models of axle and suspension were launched at the beginning of 2012. The products were well received, and commercial production of these will commence shortly. Manufacturing of axles at the new plant in Pune commenced in May 2011. This facility includes suspension assembly, special axles and R&D centre. Axles for hydraulic trailers, which were previously imported, are now being manufactured at the Pune plant. With a view to 2.86 per cent lower than Rs. 130.36 Adithya Automotive making suspension products more crores the previous year. However, Applications competitive, the focus is on indi- in the last quarter of 2011-12, there TRF Ltd. had entered into a share- genization and value engineering were signs of improvement in the holders agreement with Tata Capital which would help the company in order book. Ltd. and Jasper Industries Pvt. Ltd. the next financial year. Efforts to During the year DLT had entered to form a joint venture company, work with and support the custom- into purchase agreements with AP Adithya Automotive Applications ers on application, maintenance and Moller Terminal and DP World, two Private Ltd. (AAA), engaged in the installation continued at the Pune large port operators. The company business of automotive applications Training Center as well as at various also entered into dealership arrange- to provide end-to-end solutions customer sites across the country. ments in Japan and India to market through fabrication and machining DLT Group its trailers. for vehicles to be used as tippers, Dutch Lanka Trailer (DLT) be- Dutch Lanka Engineering Ltd., a load bodies, trailers, refrigerated came a wholly-owned subsidiary 100 per cent subsidiary of DLT in bodies, etc. 2011-12 was the first full of TRF Singapore Pte. Ltd. towards Sri Lanka, engaged in maintenance, year of operations for AAA. Dur- the end of 2011. The slowdown in service and trailer manufacture for ing the year it supplied 3,038 tipper the global economy and the con- the local Sri Lankan market, had im- bodies against 1,245 in the previ- sequential decline in International proved its performance significant- ous year. Sales at Rs. 73.73 crores trade and container traffic, adversely ly, recording its highest-ever sales AAA had also completed the first impacted DLT sales during 2011-12 since inception of Rs. 21.70 crores phase of capacity expansion from 10 as the company depends heavily on against the previous year’s Rs. tippers to 15 tippers per day while sale of ‘port terminal trailers’. Road 14.29 crores, achieving growth of the next phase of expansion to 25 trailer sales also remained stagnant. 48.78 per cent and further increasing tippers per day is underway. Sales at Rs. 126.63 crores were its market share in Sri Lanka.

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(previous year: Rs. 29.35 crores) increased by Rs. 44.38 crores. The company had delivered the first proto- type of SS fuel bowser specially developed and manufactured for the In- dian Army. More proto- types are planned in the current financial year. During the last fiscal, the company had successfully achieved commercial production of a new tipper variant ‘10 cubic meter standard box tipper on TRF India and introduced new prod- the increasing demand. The subsidi- LPK 1618 chassis’. ucts in the Indian market. aries in the auto application business HRIL The road ahead have also expanded their operations The acquisition of Hewitt Robins In order to widen its product mix, through setting up of manufacturing International Ltd. (HRIL) in 2010 TRF has successfully entered into facilities in India and expanding the represented a significant progres- tie-ups and continues to explore existing capacities. The threat of ris- sion in the direction of rapid growth further opportunities for collabora- ing costs of inputs without commen- and globalization by TRF. HRIL has tions to upgrade its technology. The surate increase in net realization is continued to perform well in diffi- Operations and Maintenance Serv- being addressed by focused cost re- cult European markets, improving ice business has been identified as a duction measures. While TRF does its turnover and profitability. How- potential for growth, and a team has not perceive any major threats, in- ever, the European market continues been formed to pursue this business. tense competition and Chinese sup- to depend substantially on replace- During the last fiscal the company plies in the Indian market calls for ment orders only. HRIL was suc- had also invested in enhancing its a different strategy to be adopted in cessful in transferring technology to fabrication capabilities to cater to competitive bidding. The start of 2012-13 had gave some signs of improvement with a somewhat higher level of enquiries for the company. However, any significant change may be towards the year end only, and therefore the focus of Team TRF will be on an aggressive business development drive targeting higher new order bookings coupled with timely, efficient and cost-effective execution of orders and projects on hand. w

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IAA preview

hina built 6.2 million commercial vehicles in 2011. CThis makes it the world’s largest producer of commercial vehicles, with a share of 44 per cent of total global production. India and Turkey are also among the top five in the world ranking. India’s production of commercial vehicles in 2011 rose by more than one-fifth (+22 per cent) to 887,000 units, while Turkey built 549,000 commercial vehicles, an increase of 12 per cent. The German Association VDA recognises this development by putting these countries at the focus of three events with top-level guests at the 64th International Motor Show (IAA) in Hannover. Mr. Matthias Wissmann, VDA President The “IAA India Day” on Septem- ber 21 will take a close look at the of Heavy Industries, Indo-German try representatives will speak on the market and co-operation prospects Chamber of Commerce (IGCC) and development and prospects of the in India. The main speaker will be the corporate consultants Manage- Indian commercial vehicle market. the Indian Minister for Heavy In- ment Engineers, VDA is organising The ACMA President, Mr. Surinder dustries, Mr. Praful Patel. Together the India Day for the seventh time at Kanwar, will give an overview on with the Automotive Component the motor show. the supply industry in India. This Association of India (ACMA), the After the welcome address by will be followed by the SIAM Presi- Society of Indian Automobile Man- VDA President Matthias Wissmann dent, Mr. S. Sandilya, speaking on ufacturers (SIAM), Indian Ministry and a lecture by the Minister, indus- “Prospects for the Indian automo-

78 MOTORINDIA l September 2012 IAA preview

tive industry.” Then Mr. Marc Llis- Ministry Investment Support and tosella, CEO & Managing Director Promotion Agency, will provide of Daimler India Commercial Ve- an overview of the Turkish vehicle hicles, will talk on “Challenges for market. Indo-German co-operation in the Promotion and R&D development automotive industry.” activities will be covered in the fol- Mr. Michael Rüger, of Manage- lowing lectures to be delivered by ment Engineers, will speak on Mr. Burhan Kurt, CEO of Aktas “Technical challenges for the com- Holding, and Mr. Martin Panzitt, mercial vehicle industry”, while Director of International Tech Cent- Mr. Jacques Esculier, Chairman and er Management. CEO of Wabco, will report on the The largest group of 147 foreign “Next stage in customer partnership exhibitors at the 64th IAA Commer- in India.” To finish off, Mr. Ambuj cial Vehicles is from China. This Sharma from the Indian Ministry of number reflects the importance of Heavy Industries will report on the China as a commercial vehicle mar- Indo-German Working Group on ket and location. The China event Automotive Sector. on September 26, which VDA is or- The Turkish scene ganising with the support from the Turkey, as a significant commer- law firm Hengeler Mueller, will give cial vehicle market and production participants an overview of the Chi- location, will be the focus on the nese market and the challenges and “IAA Turkey Day” on September potentials of manufacturers and sup- 24. It is expected that around 1.2 pliers there. million vehicles will be produced The Chinese competence in the country in the current year. After the welcome address by About 1,000 automotive supply VDA Managing Director Klaus businesses form a major branch of Bräunig, there will be a presenta- industry as they account for around tion by Dong Yang, Executive Vice 45 per cent of all exports. Chairman and Secretary General VDA and its co-operation partners of the Chinese Association of Au- – the Turkish suppliers’ association tomobile Manufacturers (CAAM), Taysad and the association of ex- on “China’s new role in the global porters in the Turkish automotive economy.” Michael Dong, President industry – will examine opportuni- of MAN Truck and Bus China, will ties resulting from Turkey’s grow- talk on “Challenges for a European ing importance as an automotive OEM in the Chinese market.” The market. After the welcome address topic “Obstacles and surprises when by VDA Managing Director Klaus investing in and from China” will be Bräunig, Mr. Ömer Burhanoglu, discussed by Dr. Changfeng Tu of Vice President of the Association Hengeler Mueller, while Leon Liu, of exporters in the Turkish automo- President Asia at Wabco, will reveal tive industry, Taysad President, Dr. the latest “Commercial vehicle in- Mehmet Dudaroglu, and Mr. Emre novations in China.” Pinarli, Project Director, Prime w

MOTORINDIA l September 2012 79 IAA preview (component zone)

Under the motto “Efficiency on the road” Voith will be presenting its latest products and solutions for trucks, buses and coaches at the IAA Commercial Vehicle Show to be held at Hannover during September 19-27. The focus is on higher efficiency, reduced emissions and lower operating costs. Among the highlights are the new ElvoDrive technology concept and the Aquatarder SWR, the world’s first secondary water retarder.

For the globally active com- ric system. The basis is the new Another product making its mercial vehicle supplier, the DIWA.6, which can save another debut at the show is the perfect future of public transport lies in five per cent of fuel compared to solution for buses and other com- the increased efficiency of drive its predecessor model. These sav- mercial vehicles with high air con- systems. With its eyes firmly on ings can be achieved by control- sumption: with the LP 725 Voith emission-free driving, Voith is ling the operating pressure in the offers the three-cylinder com- presenting the ElvoDrive, a se- transmission. It can be lowered to pressor now also in an aluminum rial hybrid drive that transmits up to five bar, saving nearly three the required power as 100 per per cent of diesel. This is added by cent electrical energy, so that the an intelligent start-up management, combustion engine can always be as well as the SensoTop gear-shift- operated within its lowest specific ing program. In combination with fuel consumption range. Future de- a new torsional vibration damper, sign stages will also allow purely the program allows gear-shifting electric drives, range extender or at even lower speeds and thus cuts plug-in concepts. The advantages down on consumption. of the ElvoDrive in future city The efficiency package is com- buses are thus highly diverse: from pleted by the SmartNet telemet- simply reducing fuel consumption ric system. In order to minimize to emission-free electric driving downtimes, the bus is sending over short distances. its operating data to a server via Savings potential lies also in a GPRS. In the event of a transmis- new efficiency package presented sion fault, the operator is informed by Voith in Hanover. It consists of and can react instantly before the the new DIWA.6 automatic trans- bus breaks down. Preventive main- mission, the topography-dependent tenance keeps buses longer on the SensoTop gear-shifting program road and cuts down on workshop and the DIWA SmartNet telemet- stops.

80 MOTORINDIA l September 2012 IAA preview (component zone)

lightweight construction. From 2013, the LP 725 is intended for the new generation of Euro 6 engines. Voith air compressors stand out against single-stage compres- sor by higher specific displacement volumes. They consume less energy and reach the end pressure at lower compression temperatures, thanks to intermediate cooling. The Aquatarder SWR, the world’s first secondary water

retarder, increases its application spectrum: from the start of series production it is available in the sions by up to 80 per cent. new Mercedes-Benz Antos distri- Voith Turbo, the specialist for bution truck. The water retarder hydrodynamic drive, coupling and operates with the cooling agent braking systems for road, rail and of the engine and is thus main- industrial applications, as well as tenance-free: compared with oil for ship propulsion systems, is a retarders, between 6 and 12 litres Group Division of Voith GmbH. of oil can be saved annually per Voith sets standards in the mar- vehicle. There is also no need for kets for energy, oil & gas, paper, waste oil disposal and workshop raw materials and transportation stops for oil changing. With its ex- & automotive. Founded in 1867, tremely compact design it uses 50 it employs almost 40,000 people, per cent less installation space and generates Euro 5.6 billion in sales, is 35 kg lighter than a comparable operates in about 50 countries oil retarder. around the world and is today one Retarders can assume up to 90 of the biggest family-owned com- per cent of all vehicle braking op- panies in Europe. erations. This protects the service brake and reduces brake dust emis- w

MOTORINDIA l September 2012 81 IAA preview

IAA symposium to focus on benefits of modern telematics systems

functions, plus the costs of acquiring and operating the systems. This is where the IAA symposium on “Purchasing advice for telematics: on the path to the right system – costs and capabilities of telematics systems”, to be jointly organised at Hannover on September 24 by the trade magazine “VerkehrsRundschau” and the VDA, assumes significance. The symposium will offer some orientation to companies interested in telematics. Following the success of the first event of this type at the 63rd IAA Commercial Vehicles in 2010, now telematics experts are again helping out with information that is both practical and user-oriented to show which system is the most suitable for a particular company and which system will pay off over the total period of use. The symposium is aimed at all decision-makers in for- warding and transport companies and in industry and commerce who are responsible for fleets or IT. An introduction to the topic from the VDA Managing Director, Dr. Ulrich Eichhorn, will be followed by Karl-Heinz Neu, Director of Schmitz Cargobull Telematics, Mün- ster, talking about “The capabilities of modern trailer Dr. Ulrich Eichhorn, VDA Managing Director telematics.” He will explain the functions and system elematics is a crucial instrument for trans- components illustrated with examples from actual prac- port companies when it comes to increasing tice. Tefficiency and reducing costs. Telematics Bernd Schoob, Managing Director of Fleetconsult systems not only allow positioning, but also serve GmbH, Geldern, will speak on the “Return on invest- communication between the driver and the dispatch ment in telematics projects.” Alexander Németh, ANE office and carry out automatic route planning and Projektmanagement & Training, Berlin, covers the topic truck navigation. They evaluate data about the driv- “Digital tachograph and telematics – system interplay er and the vehicle, plan maintenance and provide lo- in archiving.” Prof. Heinz-Leo Dudek, of the Baden- gistical support for the transport job. Wuerttemberg Cooperative State University (DHBW), All this helps reduce the money spent on fuel, person- Ravensburg, will present “Exclusive study results: an nel and the vehicle itself, and save CO2. However, there overview of the telematics systems market”, including are still many transport companies that so far have not a current overview of providers with their services and decided to invest in this technology. The reasons given prices. include too many providers, too many different system w

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IAA preview (technology)

conomy and efficiency are the focus of the international automotive supplier Continental Eat this year’s IAA. In hall 17 booth A06/B05, on an area of 600 m2, Continental presents numerous innovative technologies, products and services, with which the manufacturers of commercial vehicles can make their vehicles safer, more economical and cleaner, as well as network them more intel- ligently for easier operation. The motto of the presentation is “One Goal: Efficiency”. The automotive supplier presents its technological innovations for the automotive megatrends of Safety, Environment, Information and the industry trend of Efficiency. Innovative driver assistance and braking systems, vehicle networking and operating concepts, drive technologies, sensors, interior trim materials and tyres are just some of the innovations on display. “Only when trucks, vans or buses are less involved in accidents, keep their fuel consumption as low as possible and have clever data exchange with the driver and environment, can they actually be operated economically with reduced operating costs and thereby achieve the effectively lowest overall costs,” explained Dr. Elmar Degenhart, Dr. Elmar Degenhart, Chairman of the Chairman of the Executive Board of Continental. “With our IAA Executive Board of Continental participation this year, with the focus on the industry-relevant topic

84 MOTORINDIA l September 2012 IAA preview (technology)

fleets, from tire selection to service solutions. As an important service solution, Continental presents the fleet management system Conti 360° Fleet Services. The system offers modular services which enable individual and expert tyre management specific to the needs of customers. The fleet operator thus ensures that the condition of his vehicles’ tyres is constantly optimized, the administrative workload MK 100 ESC XT Base and expenses are low, and the costs are easily calculable. Meanwhile, ESC XT electronic braking system the mobility service for fleets with which Continental will present at international operations is available IAA for the first time. Volume pro- in 13 European countries. duction of the system is slated to get ‘Efficiency’, we would like to show In the “Safety” megatrend area of underway in 2015. It is an extension that, thanks to our wide product the trade fair booth, the focus is on of the modular and scalable MK 100 range and our systems expertise, we driver assistance and braking sys- product family, which allows the can offer our customers solutions tems. The highlight is the MK 100 use of the anti-lock braking system that improve the efficiency of commercial vehicles.” The highlight as far as Efficiency is concerned is the preview of the forthcoming Continental tyre generation for omnibuses and trucks. For the first time at IAA, Continen- tal will display tyres of the 3rd generation. With the new tyres, which will be gradually introduced to the market from mid-2013, the company will incorporate state-of-the-art tyres as regards efficiency, safety and comfort into its world-wide product range. With tyres of the 3rd generation, customers will have products at their disposal that have been developed and optimized for the target group, which simplify the work of those in charge of vehicle SCR Technologies

MOTORINDIA l September 2012 85 IAA preview (technology)

(ABS) and electronic stability con- Within the scope of the megatrend Information, Continental also presents trol (ESC) in all vehicle categories numerous product developments related to intelligent transport systems and thereby even saves space and (ITS), tire pressure monitoring systems and new studies for the commercial weight. vehicle cockpits of the future. Products and solutions aimed at reducing CO2 emissions are present- a more environment-friendly vehi- in the background. The new system ed in the “Environment” megatrend cle. thus gives the commercial vehicle area. Continental thus demonstrates The “Information” megatrend driver a bird’s eye-view of critical systems expertise with innovative area is primarily devoted to vehicle situations. solutions for exhaust gas aftertreat- networking and operating concepts. With sales of Euro 30.5 billion ment, which help in complying with For the first time, Continental will in 2011, Continental is among the exhaust standards such as Euro VI be presenting an intelligent camera leading automotive suppliers world- (2013) and US10 /Tier4f. The selec- system for commercial vehicles at wide. As a supplier of brake sys- tive catalytic reduction (SCR) of ni- IAA. With this camera system, the tems, systems and components for trogen oxides (NOx) and diesel par- driver receives 360-degree visibility powertrains and chassis, instrumen- ticulate filters (DPF), which remove around his commercial vehicle in tation, infotainment solutions, vehi- particulate emissions from truck real time. This will help truck driv- cle electronics, tyres and technical exhaust fumes, play a key role here. ers during manoeuvring, bus drivers elastomers, Continental contributes In SCR, a watery urea solution (Ad- during safe departure from crowded to enhanced driving safety and glo- Blue) is injected in the exhaust gas bus stops and drivers of construction bal climate protection. It is also an flow to be able to transform nitrogen vehicles in the centimeter-accurate expert partner in networked automo- oxides in a catalytic converter. positioning of their machines. bile communication and currently Continental delivers important An efficient control computer that employs approximately 169,000 components for this purpose: From adds up the digital signals of the persons in 46 countries. 2013 onward, newly developed Ad- cameras to a 2D or 3D image works w Blue injectors with air cooling for light-duty use will enter mass production. At the same time, Conti- nental is developing a water-cooled version for use in trucks. Cont- iTech’s heatable hose line modules also form part of the SCR systems expertise. Other trade fair highlights also aid environmental protection: For example, the newly developed fuel quality sensor can be used to de- termine the quality of fuel and thus optimize fuel injection. New types of air spring systems with plastic pistons save up to 12 kg of weight per axle and thus cut fuel consumption. The use of renewable resources for interior trim materials in driver’s cabs is an additional contribution to Fuel Quality Sensor

86 MOTORINDIA l September 2012

IAA preview

IAA Commercial Vehicle Fair to witness Gala Awards presentation

he 64th IAA Commercial Vehicles in Hannover will be officially opened on September 20, by the Federal Minister of Transport, Dr. Peter Ram- Tsauer (CSU). “Commercial vehicles: driving the future” is the motto of this year’s event being held in Hanover from September 20 to 27. More than 1,800 exhibitors will present technological highlights in the commercial vehicle, transport, trailer and supply industry at the world’s most important trade fair for transport, mobility and logistics.

herself a racing driver. Beyond all doubt the engines of the future – but also of the present – include electrical drives. This key technology is an essential milestone on the way towards sustainable and modern mobility for tomorrow, as it promises intelligent solutions for efficient and environmentally-friendly transport of passengers and goods. The latest concepts and developments of hybrid and electrical drives in the commercial vehicle sector will be on show at IAA. The performance show on the stands will be complemented by the possibility of test drives with trucks, Dr. Peter Ramsauer, Federal Minister of Transport vans and buses during which visitors can experience the electrically One highlight of the first Press and suppliers, association presi- powered vehicles hands on for the Day will be the “Evening of the dents, managing directors and com- first time. This thematic focal area commercial vehicle press,” to which munication and press chiefs from at IAA will be rounded off by the the German Association of the Au- the exhibiting companies. tomotive Industry (VDA), the IAA The judges are well known trade The ‘Oscars’ of the commercial vehi- organiser, traditionally invites rep- journalists and editors-in-chief from cle industry will be presented for the resentatives of the German and for- all over Europe, who give the prod- fifth time: the awards ‘Truck of the eign media, board members of the ucts a thorough testing. The evening Year,’ ‘Bus of the Year’ and ‘Van of commercial vehicle manufacturers will be hosted by Christina Surer, the Year.’

88 MOTORINDIA l September 2012 IAA preview

“Electric Mobility Congress” 25. Top-flight experts from the being held at the Hanover commercial vehicle, transport Fairgrounds on September and supply industry will be ex- 26, organised by VDA jointly amining the themes of Car-to-X- with BDEW, BDI, BITKOM, communication, navigation and VDMA, VCI and ZVEI. telematics of the future, driver The congress, which pre- assistance systems, traffic man- miered successfully at the agement, infotainment, apps and IAA Cars with some 500 par- operation, as well as e-mobility ticipants last year, will be exploring nology? What has been achieved so & IT. the entire value chain of the electric far? What hurdles have still to be Both congresses are being held in mobility system and will thus offer a overcome? Room 1 of the Convention Center platform for exchanges between all A second trend in the future of the (CC) at Hanover Fairgrounds. Par- participating branches of industry. automotive industry is networking. ticipation is free of charge for jour- High-ranking representatives from The vehicles of tomorrow will com- nalists. The detailed programme and the industry, academia, research municate – with the internet, with registration form can be downloaded and politics, including Germany’s other vehicles, with infrastructure. from the IAA website at Opens in- Federal Minister of Economics and Opportunities, challenges and poten- ternal link in current windowhttp:// Technology, Dr. Philipp Rösler, will tials of these new IT systems form www.iaa.de/besucher/veranstaltun- be examining a range of issues such the focus of the “CarlT – Mobility gen/veranstaltungen/fachveranstalt- as: where does Germany stand in 3.0” being presented by the branch ungen/. the development of this future tech- association BITKOM on September w

Diesel Emissions meet during September 12-14

Diesel prices in India are heavily subsidised by the in meeting Bharat Stage IV legislation for on-road and government, but with a growing budget deficit plans are non-road vehicles and fuel economy requirements. being worked out to reduce this subsidy. The conference will address emissions control tech- Dr. Kirit Parikh, Chairman of the National Low-Car- nologies for high sulphur diesel fuel, the potential of bon Strategy Group, will be addressing the Diesel Emis- alternative fuels and dual fuel technology, and advance- sions Conference India to investigate possible methods ments in hybrid technology for light-duty vehicles, and of implementing diesel fuel price reform in India and the also give an update on the current BS IV legislation. impact that this could have on the automotive industry. This is the region’s leading diesel emissions event at- To be held in New Delhi during September 12-14, In- tracting over 200 representatives from OEMs, technol- teger Research’s third Diesel Emissions Conference will ogy providers, and aftertreatment distributors and sup- bring together senior stakeholders from the global au- pliers from India and overseas. tomotive industry and investigate the industry progress Global Media Partner: MOTORINDIA

MOTORINDIA l September 2012 89 IAA preview (technology)

LAMILUX high-tech materials for lightweight vehicle design

Carbon- and glass-fibre-reinforced As a result of their light weight With its High Strength X-treme Car- composites are smoothing the way combined with optimum stability bon, LAMILUX is the first manufac- for tomorrow’s green, energy-effi- and resistance to UV light, corrosion turer worldwide to produce carbon cient mobility. As highly sturdy, re- and weathering, fibre-reinforced fibre-reinforced composites (CFCs) sistant, yet very light materials, they composites far outperform conven- with a width of up to 3.20 metres in offer a wide range of potential uses tional materials used in commercial a continuous flat sheet manufactur- in construction, thus accelerating the vehicles, such as aluminium and ing process. global trend towards lightweight de- sheet steel. These high-tech materi- signs for commercial vehicles. als can be used as inner and outer as a material featuring optimum Whether they are featured as sandwich face sheets on side walls. strength and resistance combined outer and inner face sheets in side They are also ideal in their numer- with a very low mass per unit area. walls and roofing or as extremely ous variants for use in roofs and The potential of this material lies resilient floor covering, LAMILUX floors. mainly in the construction of walls composites are used across the sur- The CFC optimally meets the re- and roofs on lightweight truck bod- faces of almost all essential body quirements of lightweight design ies and trailers. CFC is up to 50 per sections which give vehicles their stability. Europe’s leading manufacturer of fibre-reinforced composite sheeting, LAMILUX, will be providing a comprehensive, detailed insight into the variety of materials and applications that it offers at IAA Com- mercial Vehicles in Hannover. LAM- ILUX products and ideas will be showcased in a life-size, dry-freight truck body which visitors can enter on the company exhibition stand.

90 MOTORINDIA l September 2012 IAA preview (technology)

of this extremely setting polymers. robust resin and Thanks to its extremely impact- glass-fibre com- resistant behaviour and tensile posite during the strength, LAMILUX High Impact is lamination proc- even able to withstand the effects of ess, ensuring the strong frontal forces, such as those product achieved encountered when loading and un- top ratings re- loading. garding its anti- LAMILUX Composites GmbH has been slip properties producing fibre-reinforced compos- (up to Class R13) ites for about 60 years. This medium- when tested in sized company is Europe’s leading accordance with producer, thanks to its technological- DIN 51130. ly advanced continuous manufactur- cent lighter with a tensile strength The composite LAMILUXplan ing process, large production capaci- three or four times greater than that High Impact has managed to com- ties and wide product range. in steel or aluminium. bine the design advantages of three Light but strong materials structural materials for commercial LAMILUX supplies customers The fibre-reinforced composite vehicle construction. Used as the around the globe in a wide range LAMILUX High Strength has been inner and outer face sheet in side of sectors such as the construction specially developed for extreme walls, this material features the im- industry, the automotive and recrea- commercial vehicle applications pact resistance and surface finish of tional vehicle industries, refrigerat- exposed to very high mechanical coated metal facings. It also posed store room and cell construction loads. Thanks to its resistance to hail sesses the low thermal conductivity and many other industrial sectors. storms and UV light, and its low heat and elastic deformability found in In 2011, LAMILUX, the family- expansion, it is eminently suitable as thermoplastic materials while offer- managed company based in Rehau, large-scale roof sheeting. The mate- ing the high resistance to UV light, Bavaria, achieved a turnover of 143 rial’s optional transparent property weathering and corrosion of thermo- million euros. w allows daylight to stream into vehicle body and trailer interiors, highly useful when loading and unloading. With its GRP material LAMILUX Anti Slip, LAM- ILUX focuses on flooring in commercial vehicles. It unites the advantages of fibre-reinforced composites and low mass per unit area with a universal product feature which is extremely ben- eficial for the transport industry: anti-slip protection. Quartz sand or granite gran- ulate is applied to the surface

MOTORINDIA l September 2012 91 automation VDMA discusses role of automation in reducing overall cost of production

The members of the VDMA Com- posite Technology Forum and of the partner organisations AVK, Carbon Composites e.V. and CFK Valley Stade e.V., recently met in Frankfurt to discuss affordable manufacturing automation solutions along the entire process chain to help bring about the required reduction in the cost of finished products. In his welcome address at the session, Frank Peters of KlaussMaffei Technologies GmbH Board highlighted the importance of close co- operation between machinery and plant manufacturers and the industry using fibre composites as well as among their various networks. In his keynote address on the challenges of automation, Klaus Mr. Frank Peters, spokesman of the Composite Technology Forum and Krauss- Drechsler, Professor of Carbon Maffei Technologies GmbHboard member. Composites at Munich Technical University, identified carbon fibre- systems in lightweight construction, key drivers for industrialisation,” he reinforced plastics (CRP) as having with a possible 90 per cent saving in said. the greatest potential of all material process costs. Composite component manufac- “Use of carbon fibre- reinforced turing will have to be overhauled More than 150 delegates discussed plastics in industrial-scale produc- completely if large-scale produc- approaches to automation and what tion does however still require con- tion is to be introduced in the motor was required of plant and machinery siderable research efforts, from the industry, explained Heinrich Timm manufacturers, stressing the benefits material sciences through structural of AUDI AG. “Lightweight con- of knowledge transfer for the neces- mechanics to process engineering. struction goes far beyond reducing sary joint developments. Automation solutions from machin- consumption and emissions. Light- ery and plant manufacturers are the weight construction is also about the

92 MOTORINDIA l September 2012 automation

From left, Mr. Frank Peters, KraussMaffei Technologies GmbH, Dr. Rolf Bütje, Nordex SE, Mr. Prof. Klaus Drechsler, TU München, Mr. Volker Mathes, AVK, Dr. Begemann, VDMA, Mr. Thomas Waldmann, VDMA, Dr. Elmar Witten, AVK, Dr. Michael Effing, AVK, Mr. Lothar Gräbener, Schuler SMG GmbH & Co. KG, Dr. Markus Lang, Voith Composites GmbH & Co. KG, Mr. Christian Meiners, BRÖTJE-Automation GmbH, Dr. Thomas Bischoff, Groz-Beckert KG, Mr. Thorsten Kühmann, VDMA, and Mr. Heinrich Timm, AUDI AG sustainable saving of resources and automating the manufacturing and tion and hardening processes, tool driving safety. That is why the fo- joining processes for the production design, joining and assembly tech- cus is on lightweight more than ever line. VDMA’s current practice of niques, working and testing of com- before, inspiring ideas in composite exchanges between machinery and ponents. construction ranging from steel and plant manufacturers and user indus- For all these questions, the Com- aluminium to fibre-reinforced mate- tries is of utmost importance here.” posite Technology Forum brings to- rials. The best material for the pur- There is no series manufacture gether more than 130 VDMA mem- pose is the smallest possible quantity without automation solutions. The ber-firms from eight associations to and in the right place: that is the way use of fibre composites in series pro- pursue the necessary developments to economic lightweight construc- duction requires reliable processes jointly with the customer indus- tion. This means developing and with short cycle times and a high tries. With thermo process technol- degree of accuracy. At the same ogy, textile machinery, garment Lightweight components are increas- time, the prices of high-performance and leather technology, plastics and ingly being used for the new gen- fibres will have to come down in rubber machinery, robotics and au- eration of motor vehicles in particu- order to be competitive. The chal- tomation, machine tools, precision lar, especially to compensate for the lenges of automated manufacture tools and testing machines, the en- weight of electric vehicle batteries and arise at every stage: textile moulded tire process chain is covered, from fibre to finished component. to cut fleet consumption overall. part manufacture, cutting, handling of limp fabricated materials, injec- w

MOTORINDIA l September 2012 93 logistics

VRL Logistics leading the way in service quality and work ethics

Over the years, VRL has pioneered in providing a safe and reliable delivery network in the field of parcel service. It has spread its operations to Courier Service, Express Cargo & Air Chartering to meet the growing demand of the burgeoning customer base. In an exclusive interview to MOTORINDIA, Mr. Vijay Sankeshwar, Chairman and Manag- ing Director, VRL Logistics, highlights the key aspects of his company’s growth and certain se- crets behind the apparently unparalleled success of VRL. Power of people VRL is known for its extremely good management-employment relationship. The company offers high salary packages to its employees which helps build an easy-to-retain and loyal employee base. Mr. Vijay Sankeshwar says: “We attribute our success to each one of our employees. We always look at the long-term and believe in long- term relationship with our employees, customers and financiers. We are not affected by the price war in the market because we never compromise on quality. We deliver what we promise.” Mr. Anand Sankeshwar ably supports his father as the Managing Director of VRL. The company Mr. Vijay Sankeshwar, values the service of experienced campaigners Chairman & Managing Director, VRL Logistics with abundance of knowledge on the industry VRL Logistics is one of India’s largest lo- and is known for employing retired people who gistics companies with a fleet strength of have the drive left in them to work for the indus- over 3000 vehicles. From a humble begin- try. Mr. Bhatt is its CTO and is with the company ning in 1976, with a vision that was way for 15 years. ahead of its time, VRL currently has pres- Mr. Umesh is its COO, serving the company for over three decades. Mr. Vijay Sankeshwar ence in almost every State in the country was indeed very humble in attributing his com- and has grown into a nationally-renowned pany’s success to the dedicated and sincere serv- logistics and transport company. ice of the workforce over the years.

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cause of concern. Despite adhering to the rules, organised players face the heat owing to the various loop- holes in the industry which are ex- ploited by unorganised and unethi- cal players. Unique policy When it comes to targets and plans, VRL is a company which has its own unique way of operation. In fact, the company does not have huge business targets and turnovers. The main targets are fixed for its drivers who are given an incentive VRL is currently the largest pri- initially the segment attracted good bonus for every punctual trip. The vate fleet owner in India with a fleet response, owing to the slump in reward increases if he manages to size of 3860 vehicles which includes car sales off late, the demand has cover the distance before the stipu- 550 tourist buses and 3310 goods slowed down. The car-carrier seg- lated time. The company operates transport vehicles. The company ment though being a very important on a strategy of catering to the lo- finds mention in the Limca Book of one reveals some shocking num- gistics requirements of clients in dif- Records as the single largest fleet bers. Out of the 14,000 car carriers ferent fields which reduces the risk owner of commercial vehicles in the in the country, less than 500 are in of high dependence on a particular private sector in India. The passen- compliance with the Motor Vehicles sector. ger carrier fleet includes 130 Volvo Act. Legally speaking, the car car- A fleet of over 3,500 vehicles calls coaches while the cargo carrier fleet riers should at most be 18.75 metre for around 7,000 drivers. Though includes nearly 2500 Ashok Ley- long, while most of the carriers are VRL has rarely faced driver short- land vehicles, which reflect its trust over 22 metre long which is a huge age, thanks to its high salary pack- and confidence on the Ashok Ley- land and Volvo brands. ‘An entrepreneur in his own right’ The company has recently bought Mr. Anand Sankeshwar, Managing Director, VRL Logistics Ltd. is an entre- 20 BharatBenz trucks which are cur- preneur in his own right. A multi-faceted personality, he has been recognized rently plying between Mumbai and as a ‘Youth Icon’. A man of vision, well-tuned to changing times and emerging South India. It has a good number of trends in the publishing world, He has been instrumental in scripting the suc- Tata Aces for last mile transport and cess story of a popular Newspaper. is likely to place an order for some Major achievements: Ashok Leyland DOST vehicles n Mr. Anand Sankeshwar’s landmark achievement is in print media. In testi- soon. With 85 per cent of its total mony, he was honored with the prestigious ‘Youth Icon Award’ by ABCI of turnover coming from goods trans- Mumbai, which reads: “He never had legacy of Newspaper industry passed portation, the company is looking to on. To him the creation of Newspaper is entirely his own. He has set an ex- consolidate its presence in the seg- ample of a youth icon”. ment, while continuously expanding n He was honored as the ‘Marketing Professional of the year’ by the Indira its passenger carrier fleet. Group of Institutes, Pune. VRL has also entered the car- n He was also honored by TIE as the ‘Best IInd Generation Entrepreneur’ from carrier segment and currently has Mr.Gururaj Deshpande, Trustee for Deshpande Foundation in Hubli. 102 car carriers in its fleet. Though

MOTORINDIA l September 2012 95 logistics

ages and good relationship with the pany’s growth prospects. Says Mr. room, own diesel bunk and parking driver community, the industry is Sankeshwar: “We are not worried area. The company has a total of 42 in a spot of bother when it comes about the financial factor because warehouses at different locations to drivers. Expressing his views on we always follow a fair policy and catering to different regions across the issue, he says: “The number of our relationship with finance com- India. drivers needed is twice the vehicle panies is very good. We have about Focal point of activity production count and currently there 25 banking companies, NBFCs and VRL has a warehouse in Banga- is a 40 per cent driver shortage in In- co-operative companies who of- lore which acts as a connectivity hub dia. The vehicle manufacturers and fer us good support. Following the for the north, east, west and south the government need to act quickly recent Rs. 175 crore investment by regions. The three lakh sq. feet large as the dearth might rise to 80 per NSR, we are not looking at IPO for warehouse, spread over seven acres cent and result in making the indus- the next three years.” of land is the company’s largest try come to a standstill.” The exist- Warehousing solutions and perhaps the country’s too. The ing rule that a driver could drive a Third-party logistics and ware- warehouse is buzzing with activity, heavy vehicle only after a period of housing solutions offered by VRL more during the nights and towards three years after obtaining a light ve- are tailor-made and cater to unique the wee hours of the morning when hicle license is far from justified and needs of various customers of the most of the transaction takes place. as a result, poses a big threat to dis- industry. With the largest network Being one of VRL’s largest ware- suading people from taking to com- in India, the VRL parcel service is houses, it receives consignments mercial vehicle driving. indispensable for a large number from across the country which are IPO deferred Despite fluctuating market conditions, VRL has maintained a growth of 15 per cent in the last year. The company has been constantly expanding its fleet strength and network size and in a move to fuel further expansion, the company decided to go for an IPO four years ago. However as the public issue dates neared, the market was badly hit, of corporate houses. The compa- segregated for dispatch according to forcing the IPO to be shelved. A ny’s network spans the length and the region and as per priority. The second IPO bid in March 2011 did breadth of the country and is sup- Express Cargo division, whose ve- not fructify either, after which the ported by large number of tranship- hicles are given first priority, has a company dropped the decision of ment hubs. dedicated team servicing the entire going public. VRL has a 43-acre transport-cum- country through 15 primary routes. Following the IPO deferral, New warehouse complex at Varur, Hubli. The division is known for its prompt Silk Route (NSR), an American The unique facility has all the essen- service, with vehicles departing ex- company had invested Rs. 175 crore tial back-up services under one roof, actly on time immaterial of condi- in VRL few months ago which came including a transhipment godown, tions and circumstances. as a shot in the arm for the com- workshop, canteen, drivers’ rest Operational since October 2008,

96 MOTORINDIA l September 2012 logistics

Vijay Sankeshwar bags ‘Transport Personality of the Year’ Award

the warehouse normally has close to 1,000 people in its premis- es round the clock as vehicles keep moving in and out. On an average, the centre receives around 460 vehicles every day with a transaction of nearly 4,000 tonne, 50 per cent of which caters to the requirements of Karnataka. The state’s capital Bangalore is served through 23 delivery points and 35 booking points using a local fleet of 107 vehicles. The warehouse primarily uses forklifts and hand-trolleys to move the consignments while it also has a crane to transfer huge ones. With business growing rapidly, VRL is looking to expand the warehouse to four lakh sq. feet area, to be able to cope up with the rising logistics de- VRL Logistics added two more feathers to its mand. cap by bagging national awards at the recently held Division in the Bangalore Warehouse: CEAT ‘India Road Transportation Awards-2012’ • Express Cargo Division (IRTA) presentation ceremony in Mumbai. • Door Delivery Division CEAT India Road Transportation Awards seeks • Karnataka State Division to reward excellence and innovative thinking in the • Other States Division (states other than Karnataka) various aspects of road transportation. It attempts to • Local Division (within Bangalore) ensure fair play in the selection of award winners and does not have parameters of size and scale. The warehouse has a workshop for in-house repairs where Out of the nearly 800 entries received for the third around 40 vehicles are serviced every day. A fleet of 150 spare edition of the award, 13 national awards were an- vehicles is lined up in the centre for emergency use. The centre nounced. VRL Logistics was awarded for ‘The has a huge inventory of spare parts and also has a spare engine Best Customer Experience in HTV Category’ in the and additional tyres for emergency. It also has a tyre section for Southern region. inspection of tyres, where 25 to 30 tyres are replaced every day. More significantly, Mr. Vijay Sankeshwar. Chair- The huge fleet strength expectedly consumes huge volumes of man and Managing Director, VRL Logistics, has fuel every day, 18,000 litres to be precise, amounting to a whop- been honoured with the ‘Transport Personality of ping Rs. 8,00,000 per day! The company has IndianOil Corpo- the Year 2012’ Award at a glittering ceremony held ration (IOC) as its primary fuel partner, catering to 95 per cent recently. w of the requirement. w

MOTORINDIA l September 2012 97 component zone

Impact Safety Glass Works Pvt. Ltd., a Bangalore-based company, has emerged a popular supplier of glasses meeting the requirements of many leading companies in the country’s highly competitive automotive market. The company is working with prominent manufacturers of buses, trucks, construction equipment and also passenger vehicles, supplying quality glass as per customer requirements. It also supplies glasses for the automotive aftermarket.

Currently, the company is fo- glasses has been growing, and the er and Mahindra Navistar, through cussed on the bus segment, which company continues adding to its reputed bus-body builders such as has witnessed entry of new play- customer list. It is in fact working MG Automotive, Veera Vahana ers in the domestic market. With with all leading bus manufactur- and S.M. Kanappa. Impact glass- a decade of experience in the ers in the country, including Tata es are also supplied to the Volvo segment, demand for Impact’s Marcopolo, Ashok Leyland, Eich- and Daimler range of buses, while

Corona Bus Mercedes-Benz

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talks are in progress for supply to MAN and AMW. In the truck segment, the company is in discussion with Tata Motors, AMW, Scania and Fo- ton while supplies have already started to MAN. Impact is also in discussion with Ashok Leyland- Nissan for LCV glasses and offers aftermarket products for the Hino range of vehicles. In the construction equipment segment too, it works with some of the leading manufacturers. Impact has a 35,000 sq. metre production facility in Bangalore with a daily capacity of 100 large glasses to cater to the bus segment and 500 small wind screens for smaller vehicles. High-tech machines are imported from Finland, and the plant is capable of making glasses with printing of designs being done in-house. “Currently we have glasses which can provide a complete solution for buses and trucks. We are investing close to Rs. 30 crores for a 30-acre facility near Kolar in Bangalore which would cater exclusively to the passenger car segment. We are also keen on penetrating into the truck segment”, says Mr. Vikram Dutt, Di- rector, Impact Glass. Unlike others, the company does not insist on a sizeable minimum order from customers. This approach has attracted a lot of new customers. Mr. R.K.Dutta, President & Managing Director, The company gets automotive Impact Safety Glass Works Pvt. Ltd.

MOTORINDIA l September 2012 99 component zone

quality glass as the raw material on which operations such CNC cutting, grinding and washing are performed in a single flow line. This is followed by printing and bending of glass. The glasses are laminated using a poly vinyl butyral (PVB) film, which is imported from Solutia of the US. Impact is capable of making glasses of different standards such as American, Japanese and Korean to meet spe- BMTC cific customer requirements. Its quality control lab where the glasses are tested for compliance to required quality standards has an R&D team with technical know-how to make finished glasses from the drawing stage. Recently, the company installed a new machine for making side glasses for buses that is capable of making 200 pieces per hour or 100 sets of bus glasses per day, of sizes 1.7 to 2.4 metres. MG Auto The company is currently focusing on the domestic market. It has also started exporting to Sri Lanka, while discussions are in progress with Bangladesh and Pakistan. Impact has a TS 1649 certification which is a benchmark for any automotive glass supplier. The company also has the privilege of printing ISI on the glass, to give additional insurance benefits for customers. It holds the E Mark certification, a premium quality assurance mark and is also Tata (LCV) accredited by the United States Government Department of Transport DOT certification. In 2011-12, Impact registered a turnover of Rs. 70 crores which is expected to go up by 10 per cent this year. Almost 40 per cent of the total turnover comes from the automotive OEM segment, 20 per cent from the automotive aftermarket and the remaining 40 per cent from the industrial sector. With the entry of global players into the commercial ve- Tata Marcopolo (MCV) hicle segment and consistent growth in demand for passenger vehicles in the Indian market, Impact Glass certainly is well poised to make an impact on the fast growing domestic market. w Tata Marcopolo Volvo

100 MOTORINDIA l September 2012 vehicle zone Nissan-AL Technologies setting up state-of-the-art plant near Chennai

An exclusive report from MOTORINDIA Nissan Ashok Leyland Technolo- gies Ltd. is a joint venture set up in 2008 by Ashok Leyland of the Hinduja Group and Nissan Motor Company of Japan. The main objective of the joint venture was the development of vehicles for both the partners in a phased manner. Inter- estingly, the DOST, with an Ashok Leyland badge, the first product to roll out of the JV project, was a re- sounding success. This achievement was possible with the all-out efforts of Nissan-AL Technologies, which has also seen the new vehicle garner impressive market share figures in the eight states where the product was launched during the

Dr. N. Saravanan Chief Executive Officer, Nissan Ashok Leyland Technologies Ltd.

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last one year. To know more about the success of the LCV, MOTORINDIA recently spoke to Dr. N. Saravanan, Chief Ex- ecutive Officer, Nissan Ashok Leyland Technologies Ltd. Dr. Saravanan revealed that his firm has several ambitious plans for the future. For instance, the second product from the AL-Nissan stable, namely, Nissan Evalia, is expected to hit the Indian roads by the end of September 2012. This will be followed by the CNG variant and the passenger version of the DOST. Towards the close of 2013, Ashok has helped in considerably reducing the vehicle cost. He Leyland will introduce Stile, the JV’s next LCV model, attributed the success of DOST to its technology, design followed by the launch of a variant of the Evalia. In two and the wide sales network, supported by Nissan’s proc- years’ time, the JV will also develop buses and trucks in ess technology. the 6-tonne category with the main objective of custom- Even before the launch of the DOST, the company put the ising all the vehicles with local components. vehicle through a two million kilometre test-run, apart According to Dr. Saravanan, the indigenisation drive from vigorous testing of around 5,000 components.

Also, the JV has richly benefited Nissan for the development of vehicles of Japanese quality at Indian cost in the shortest possible time. Ultimately, what has driven the success of the joint venture is the frugal engineering system. The products developed at the JV plant also offer scope for export of vehicles to different countries. For instance, Ashok Leyland has plans to export vehicles to Bangladesh and Sri Lanka, whereas Nissan can tap the potential of markets like Thailand and In- donesia. State-of-the-art new plant Dr. Saravanan further disclosed that under the JV agreement, products have been initially developed at AL’s Hosur and Renault Nissan’s Oragadam plant. In order to meet the requirements of the company’s new product development, another state-of-the-art manufacturing plant is planned at Pillaipakkam on the out- skirts of Chennai. This plant will have all the required facilities, including a modern lab, test shop, production shop, etc. The company is awaiting final approval for the scheduled construction at the new plant next year. w

MOTORINDIA l September 2012 103 vehicle finance

Shriram Transport Finance empowering Indian trucking industry Pre-owned vehicles account for 70% of India’s CV sales

Commercial vehicle financing is perhaps the oldest retail financing segment in the country. It is a highly fragmented segment because though there are a large number of people buying trucks, most of them have poor banking habits. So unorganised money lenders meet the financing needs of several buyers of used trucks. The CV financing market in India is estimated to be more than Rs. 100,000 crores with vehicles more than five years old accounting for half of it. STFC has been a leader in the organised financing of pre- used trucks for over three decades. The company has carved a niche for itself by catering to one of the most potential yet apparently ig- Mr. Arun Duggal nored segments in the country. Non-Executive Chairman Established in 1979, Shriram Transport Finance Co Ltd. (STFC) is the largest asset financing NBFC with as- sets under management of Rs. 40,213.90 crores. The company is a leader in

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organised financing of pre-owned by organised companies as the seg- trucks with strategic presence in ment is currently dominated by un- 5-12 year old trucks and a market organised players. share of around 25 per cent. It has Versatility at its best a pan-India presence with a network Services offered by STFC of 502 branches along with over • Financing of pre-owned and 500 private financiers, and has built new commercial and passenger a strong customer base of over 8.5 vehicles, tractors, 3-wheelers, lakhs. multi-utility vehicles, etc. Used or pre-owned vehicles ac- • Finance for working capi- count for almost 70 per cent of the tal, engine replacement, bill total commercial vehicle sales in discounting, credit cards and the country. Small road transport tyre-loans as holistic financing Mr. Umesh Revankar, M.D. operators, who typically own less support. than five trucks, largely control the in 2011-12, but sales of medium • Financing of pre-owned and freight movement on road. And eve- and heavy commercial vehicles new construction equipment ryday more people join this expand- (M&HCVs) rose by just 7.9 per through Shriram Equipment Fi- ing group of truck entrepreneurs, cent as compared to 37.2 per cent nance Ltd. (subsidiary) and mostly their first buy is a used in 2010-11. This decline was on ac- • Owns, operates and man- vehicle. On an average, a commer- count of high interest rates on loans, ages Automall, India’s first cial vehicle is resold three times cut in industrial production and a physical auction platform for during its operational lifecycle of hike in vehicle prices. Several fleet pre-owned commercial vehicle approximately 12 years. operators applied brake on their through Shriram Automall In- A major challenge faced by buy- expansion plans due to slowing india Ltd. (subsidiary) ers and financiers of used vehicles dustrial activity and tough operating • Sale of refurbished commer- is lack of established platforms for environment where freight rates re- cial vehicles through Shriram trading such vehicles and proper as- mained stagnant despite increasing New Look set valuation norms. This harbours operating costs. a perception of increased risk with Challenging FY12 Light commercial vehicle sales, the financiers. However, an encour- The year 2011-12 was marked by however, increased 27.4 per cent in aging sign is that yields are much tightening liquidity and higher cost 2011-12, driven by increasing de- higher than on new vehicle financ- of funds leading to a negative im- mand from rural areas, emergence ing and the loan tenure is much less. pact on infrastructure investments of the hub-and-spoke model and the Also, there is room for penetration and deferred investment plans. But need for last-mile connectivity. inflation was kept under Currently the Indian trucking in- control since October last dustry is undergoing changes. In year, while the Reserve the M&HCV segment, the share Bank of India had eased its of heavy-duty, long-haulage trucks tight monetary policy by (16T+) is increasing on account of cutting the short-term lend- improving road and highway infra- ing rate for the first time in structure as well as greater avail- more than two years. ability of such vehicles. In the LCV Commercial vehicle goods segment, the share of sub-1T sales in India increased by segment is on the rise with the emer- 18.2 per cent year-on-year gence of the hub-and-spoke model

MOTORINDIA l September 2012 105 vehicle finance

and increasing demand for last-mile and transparency with its clients. Key hurdles to industry growth: connectivity. With the depletion in economic • Lower availability of road As for STFC’s performance in conditions, the company continued freight due to lower IIP growth 2011-12, its total income increased to critically scrutinize each asset • Increase in freight rates by 9.12 per cent to Rs. 5,893.88 class and ensured lower delinquen- • Vehicle price hike crores as compared to Rs. 5,401.05 cies. With the economic uncertain- • Higher fuel prices crores in 2010-11. The net profit ties profound, STFC chose to grow • Rising interest costs stood at Rs. 1,257.45 crores (Rs. responsibly rather than grow rap- 1,229.88 crores). ity, but also allows it to reach to idly. As a result, it reduced Loan- Penetration into rural centres newer customers with convenience to-value (LTV) ratio by 5 per cent Having established a scalable and better service. To ensure bet- to mitigate any doubts in earning business model in term of organisa- ter service, the company invested capacity. This led to reduced busi- tion structure, the year 2011-12 wit- in replicating access of key infor- ness but proved a huge fillip for the nessed STFC’s foray into rural areas. mation on mobile platforms for its company’s asset quality. STFC also During the year, it opened 14 new customers as well as field officers passed over the increased interest branches with a focus to increase its and branches. This leads to consid- rates to its customers to protect its customer base. Having created 502 erable reduction in turnaround time margins amidst uncertainty. branches across India, the company between transactions, provides real- Subsidiary companies took the opportunity to replicate its time access to required information Shriram Equipment Finance business model in the now regions and also ensures highest standards of Company Ltd. at lower incremental cost and with- transparency in the customer-com- India’s earthmoving and construc- out compromising on the asset qual- pany relationship. STFC have been tion equipment industry is expected ity. These centres resulted in lower able to leverage its well-established to grow six times to $22.7 billion by capex as well as commanded lower technology systems to maintain trust 2020 from total revenues of $3.3 bil- operation expenses. However, these centres enabled the company to remain consistently in touch with its customers and provided it an edge over banks and other competitors. At the same time, it continued to offer new products and services to leverage its existing infrastructure in line with the growth ambi- tions of its clients. Technology as key differentiator STFC believes that technology not only helps in tracking and protecting asset qual-

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lion in 2010. The growth potential is where the valuation of the vehicle slightly better than expected earlier. expected to drive demand for con- is determined through a transpar- Domestic passenger MHCV sales struction equipment such as crawl- ent public auction process. Till date, volume growth is likely to witness ers, excavators, loaders and compac- more than 1,200 auctions have been flat growth in FY13 due to the expi- tion equipment, and boost the heavy conducted and more than 45,000 ve- ration of the Jawaharlal Nehru Na- equipment rental and leasing busi- hicles have changed hands with over tional Urban Renewal Mission (JN- ness, which is a highly fragmented 35,000 bidders. The value proposi- NURM) scheme in December 2011. industry dominated by unorganised tion of each Automall is absolute Under this scheme, state transport small construction equipment op- transparency in valuation process, undertakings received funding for erators. There was a growing trend backed with assured title, quality purchase of buses. The JNNURM among small road transport opera- and performance of the vehicle. scheme had contributed 7 per cent tors to diversify into construction Shriram New Look is a novel of average annual sales volumes equipment, owing to impending in- initiative taken by STFC that aims for passenger MHCVs over FY07- frastructure investments in India. at empowering vehicle owners to FY11. To capitalize on the opportunity transact refurbished vehicles by ad- Meanwhile, domestic cargo and continue nurturing its exist- dressing and correcting few mainte- MHCV sales volume growth is ing relationships, STFC floated a nance issues. This facility is availa- likely to moderate to 7 per cent in subsidiary - Shriram Equipment ble in the Automalls and is managed FY12 on account of moderation in Finance Company Ltd., in 2010, by a dedicated team. IIP growth. The correlation between comprising of an independent team Brighter prospects growth in IIP and road freight was of professionals, having intensive The industry is expected to per- as high as 75 per cent over FY07- product expertise. Through Shriram form better than the last year as lead- FY11. An encouraging sign though Equipment Finance, it offers a wide ing indicators suggest turn around in is the RBI decision to cut lending range of pre-owned and new com- IIP growth. The overall domestic rates by 0.5 per cent which is ex- mercial construction equipment in- growth outlook for the current year pected to revive overall business cluding forklifts, cranes and loaders. looks a little better than last year. activity in the country, hopefully During 2011-12, Shriram Equip- According to RBI’s baseline projec- leading to increased movement of ment Finance Company Ltd. regis- tions, the GDP growth for the cur- freight and higher demand for com- tered a topline of Rs. 210.11 crore rent year 2012-13 should be 7.3 per mercial vehicles, both new and old. and a net profi t of Rs. 51.62 crore. cent. The global outlook also looks w Shriram Automall India Ltd. During its second year of opera- The pre-owned commercial vehicle segment, which is STFC’s primary focus tions, Shriram Automall India Ltd., area, is largely driven by aspirations of a unique customer segment – operates eight Automalls. Automall either first-time users or driver-turned-owners. This, aided by the lower is the first-of-its-kind mall that of- deal size, results in a potent combination that has largely eluded eco- fers a common meeting platform nomic downturns. The company is the market leader in lending to this for the potential buyers and sellers segment and therefore remains least affected by economic downturns.

MOTORINDIA l September 2012 107 aftermarket

By B.S. Khurana, Road Safety Practitioner: METASAFE - Driving Safety Sense

he World Health Organization and the United Nations recognize road deaths as a “killer disease” and a major Thealth issue of modern times. Seventeen deaths an hour on Indian roads! This is not acceptable in any civilized society. Every life we lose counts – bread-winners, pedestrians, cyclists, school children, at greater risk than ever before. All stake-holders have a moral responsibility to make roads safer. Man, machine, road, industry, State and society – a lethal combination of these elements, not disregarding inferior or counterfeit parts. The homicidal capacity increases with the power and tonnage of the vehicles. The line between “death and life” is becoming thinner by the hour. “Remember, upon the conduct of each depends the fate of all” – Alexander the Great. Mr. B.S. Khurana Death trap fine drivers and finer automobiles, or friction surfaces much maligned Yet we have the ubiquitous dealer yet somewhere lurks the fear of and abused, which actually stop who makes or distributes spurious a hidden part or component that the vehicle, have the dice loaded or duplicate goods. An expert who could bring disaster without a sec- against them. Any deficiency can creates death traps! His products ond’s notice. For example, critical mushroom to zero braking when spell danger, conducts his clients components like brake parts which needed most. Most drivers are una- to the chamber of horror. There are contribute directly to road safety ware of the potential danger. Lives

108 MOTORINDIA l September 2012 aftermarket

of millions depend upon braking The unwitting user falls a prey to market is extreme price conscious- efficiency. the attractive price tag without real- ness and pulling in the other direc- Constant quest for higher speed, izing the consequences. The dealer tion is the need to maintain quality modern trends in vehicle design, is willing to make a quick buck and high level of service that should high torque engines and grow- with scant regard to safety. Imag- go with it. The discerning customer ing traffic hazards should make ine taking chances with inferior or should know the fact from fiction! manufacturers worth their salt to spurious materials, pure and simple Deadly risk remain aware of quality and reli- suicide! Nobody gets too concerned about ability. Safety items like brakes Initially easy to disguise reduc- counterfeiting T-shirts and blue are selected after many months of tion in quality that this entails as jeans with brand logos. But safety- destructive testing on computerized the outward appearance is much related automotive parts are no rigs and dynamometers, equivalent the same. Eventually cheap parts laughing matter! of thousands of miles of gruelling can be exposed only by cutting and What is counterfeiting? Basically, work. Brake temperatures can rise analyzing them that their cosmetic it is a broad term that covers any to 300-350 degree C when braking worth is revealed. They fall apart form of deception designed to trick down a hill. Inferior materials break extremely quickly and often barely end users into believing the parts down resulting in abnormal fade, cope with the situation for which they purchased are produced by an high wear and inability to provide they were intended. OEM or a reputable and reliable the required braking power. There So, pulling in one direction in the after-market manufacturer. The are no short cuts to quality! Price tag That spurious materials in the guise of “genuine” brands are flooding the market is a serious matter – the unscrupulous working hand-in-glove with dubious dealers behind a mask of respectability.

MOTORINDIA l September 2012 109 aftermarket

key to deception lies in the fact that ized. Minimum norms for testing the counterfeit part or packaging v Awareness need be created equipment ought to be laid closely resembles the real thing. against use of spurious/counterfeit down for critical items. Inde- No attempt is made to identify its parts fraught with risk and publicity pendent organizations should source of manufacture. posters, in local language, displayed carry out spot checks. Dealers The three general rules to guard in every town, and through cinema associations can draw samples against being fooled into buying slides. Consumer protection socie- voluntarily; this will create a counterfeit parts: ties, industry chambers and OEMs sense of alertness. v Know your after-market could be involved in campaigns to supplier. As a regular and loyal of what he procures from market discourage entry of doubtful materi- customer, chances are he would or service station. OEM and brand als and tracking down the culprits. not knowingly sell you counterfeit sector should intensify garage con- Once identified, such middlemen parts. tacts and warn the users of ills of or suppliers are reported by the v Do not shop by price alone, counterfeit parts. associations for expeditious legal unless you have a way of evaluating v A parts dealer is no longer action. Media is encouraged to do it before buying. Looks and packag- merely a merchant trading his investigating reporting and expose ing can be completely deceptive. wares. He has professional status the culprits. It is intended to be that way; parts and importance. He will be respect- v Motor owners’ clubs be en- look as good as and sometimes ed if he shows utmost sincerity, couraged in small towns, a warn- even better than a well-known skill and guidance in identifying the-motorist campaign be launched name. It is what is on the inside that completely with customers’ best in- by the organized sector, regional really counts. Counterfeiters count terests. A manufacturer’s reputation transport authorities, traffic police on your weakness for the price tag depends on how the dealers and and social organizations. and not taking the precaution of distributors conduct themselves to v Society must condemn those adherence to rigid specification of create satisfied and grateful clients. indulging in manufacture and sale known and reliable after-market v Motor parts dealers asso- of counterfeits endangering safety, manufacturers. ciations could frame a code of and the State and the industry Suggestions “business ethics’ [prominently together must deal with this social v Firstly, the manufacturer must displayed] to say that the members evil with a heavy hand. maintain his reputation of putting shall refrain from stocking or sell- “Accidents don’t happen, they “quality and safety” first and guard ing spurious parts. Any member are made” – Earnest Greenwood the end-user in turn, irrespective violating it may be suitably penal-

110 MOTORINDIA l September 2012

aftermarket

FAIASPDA plea against hike in taxation on auto spares

The proposed introduction of GST will surely be a major step towards taxation reforms. Associations like the Federation of All India Automo- bile Spare Parts Dealers’ Associa- tions (FAIASPDA) have appealed to the Government to outline the roap map for introduction of GST, a purely computer-based system, to ensure smooth transition to the new tax system. Addressing the FAIASPDA conference held in Bangalore recently, Mr. U.K. Bhaskaran Nair, its Presi- dent, said VAT was introduced in Mr. U.K. Bhaskaran Nair, FAIASPDA President April 2005 under which the taxation of paper work. Hence the VAT laws for revenue losses. CST, a tax on rate was kept at as high as 12.5 per should be made simpler and more inter-State movement of goods, was cent because of which the trade suf- transparent, enabling the State Gov- reduced from four to three per cent fered a lot. It also proved detrimen- ernments to garner more resources. in 2007-08, and further to two per tal for a growing country like India. According to him, the States have cent in 2008-09 after the introduc- Its present form is quite cumber- been successfully implementing tion of VAT. some and complex, involving a lot VAT and reaping positive benefits Most of the States, which have thereof, as is evident from the buoy- been adversely affected, strongly Introduction of four per cent VAT ancy in tax revenue after its intro- felt that in case the Government is would bring many traders within the duction. No State would lose its po- not able to continue compensating tax net. Any loss in VAT would be sition of advantage by allowing the States for the CST loss, it should in- compensated by the greater volume trade to be diverted to other States crease the CST rate from two to four of trade, and the States would start where VAT is lower. per cent. garnering more revenue. There is Mr. Bhaskaran Nair went on to On its part, FAIASPDA has thus need to bring down the rate of disclose that according to press re- stressed the need to exempt automo- VAT on automotive spare parts & ac- ports the State Governments have tive spareparts from the ambit of the cessories from 12.5 per cent to 4 per urged that the Central sales tax above rules on the ground that they cent and make it uniform all over the (CST) be raised back to four per cent are engineering items with their own country, so as to save the trade and from the current two per cent if the peculiar problems. customers from the extra burden. Centre refuses to compensate them w

112 MOTORINDIA l September 2012 aftermarket

ACMA meet discusses global aftermarket opportunities

Mr. Soumitra Bhattacharya, Chairman of the Consumer Affairs Committee & Anti-Counterfeiting Committee, ACMA, addressing the ACMA international conference in New Delhi. The others (from left) are Mr. Vinnie Mehta, Mr. Arvind Kapur, Mr. Jayant Davar, Mr. Ambuj Sharma, and Mr. C.K Mishra

he Automotive Component Manufacturers Association of India (ACMA) recently hosted an international conference on the global au- Ttomotive aftermarket in New Delhi to address growth opportunities in the current environment and the need to explore the new export dimen- sions. The global automotive market Europe and Japan, characterized by dustry in India has over the years, varies significantly across regions higher per capita vehicle ownership through continuous improvements, driven largely by contrasting trends and almost saturated with over 500 surpassed stringent international in vehicle-parc growth. On the one vehicles per 1,000 persons on an av- quality standards and requirements. hand, there are emerging economies erage. Today almost 80 per cent of our ex- with lower density of vehicles, and, Speaking on the occasion, Mr. ports are to the Global OEMs & Tier on the other, traditional high income Arvind Kapur, ACMA President, 1s, and the rest to aftermarkets. With matured markets such as the US, observed: “The auto component in- significantly well defined and domi-

114 MOTORINDIA l September 2012 aftermarket

brands have visible footprint, offering differentiated services and product choices to the end user. In emerging markets strong aftermarket brands, differentiated on quality-price matrix, do not exist. • In markets like Western Eu- rope and the US a strong regulatory mechanism ensures level playing field for all the industry players thus encouraging competition and offering many choices to the end user, whereas, the regulatory framework for aftermarket is weaker in emerging markets. • Efficient and well-managed supply chain & logistics have contributed to aftermarket development in mature markets. On the other hand, emerging markets are yet to achieve efficiency in warehousing, transportation, inventory management and related services. • Fake and counterfeit parts are another major challenge for aftermarket players in the emerging economies, especially China and Mr. Josef Frank, Senior Advisor, Aftermarket CLEPA aisbl, addressing the India. Mature markets, while not gathering entirely free from fake and counterfeit parts, are not adversely im- nant aftermarkets in the US and markets highlighted in the paper pacted by this menace to the same Europe, I am confident the Indian included: extent owing to legal framework, auto component industry will focus • The size of the global automo- industry activism and maturing of attention on these and will carve a tive aftermarket is around $400 bil- markets. niche for itself.” lion. In mature automotive markets, A concept note on opportunities the aftermarket generates a big slice and challenges in the global after- of the profit-pie while in emerging Several eminent international market tiled ‘The Automotive Af- markets the aftermarket is a minor speakers from South-East Asia, termarket: A Bright Spot in a Sea of contributor. Europe, the US and South Af- Change’, by Frost & Sullivan, the • Large aftermarket players, in- rica gave detailed insights into Knowledge Partner of the confer- cluding multi-brand service and various markets with key chal- ence, was also released on the oc- specialty chains, dominate mature lenges and opportunities, key casion. markets distribution channels and the Some of the salient points on the • In mature automotive aftermar- behaviour of mature and emerging kets strong service brands and parts emerging trends. w

MOTORINDIA l September 2012 115 vehicle zone

Mahindra & Mahindra launches New Bolero Maxi Truck the category. The new Bolero Maxi Truck is aimed at the transportation needs of stand operators and small and medium-scale businessmen and traders across India to ensure last-mile connectivity. The customer needs are seamlessly met by the brand in its new avatar. Speaking at the launch, Mr. Arun Malhotra, Senior Vice President, Sales & Customer Care, Automotive Division, Ma- hindra & Mahindra Ltd., said: “Being the dominant leader in the pick-up segment, the onus has always been on us to offer superior and upgraded products to Mahindra & Mahindra Ltd. has pick-up trucks, is witnessing greater our customers for their utmost con- announced the launch of the ‘New growth than passenger cars since venience. The all-new Bolero Maxi Bolero Maxi Truck’, an addition last year. This is mostly due to the Truck is a step in that direction as to its ‘pick-up’ portfolio. The new increasing demand in view of the it further enhances value to our cus- truck has undergone a makeover to growing urbanization and the need tomer by being more stylish, power become more stylish, and delivers for efficient movement of materi- packed and comfortable.” a superior driving experience. It is als from cities to satellite towns and He added: “I am sure that this powered by the trusted and proven neighbouring villages. Here pick- new Bolero Maxi Truck, with its 2523cc MDI engine, for ease of ups trucks have a greater role, and power steering option, will cater to driveability in any terrain and effort- this need has been well understood the needs of the stand operators and less load carrying ability. The ve- by Mahindra, the largest player in businessmen alike by offering them hicle sports elegant new headlamps efficient cargo movement and driv- Mahindra has long been the and a stylised front grille, and has ing comfort. With a comprehensive leader in 2-3.5 tonne pick-up power steering for driving conven- portfolio of products we hope to category with its clear under- ience. further consolidate our leadership standing of the segment re- The Bolero Maxi Truck is compet- position in the commercial vehicle quirements. Its entry-level of- itively priced at Rs. 4.08 lakhs (ex- industry.” fering in this segment is the showroom BS3 Karnataka, Standard Coming from the Mahindra sta- Bolero Maxi Truck, which has version). bles, the new remodelled Bolero enjoyed preference among cus- The category of commercial ve- Maxi Truck promises to be a power- tomers since its launch. hicles, especially the 2-3.5 tonne packed performer. w

116 MOTORINDIA l September 2012 Batteries

HEB’s strong bid to expand market share

High Energy Batteries HEB, a leading manufacturer of Magnesium for stringent applica- India Ltd. (HEB), a late hi-tech batteries used by the Armed tions like underwater propulsion, entrant in the field of lead Forces and in launch vehicle appli- control guidance, communication, acid batteries, is all set to cations since 1979, also exports its emergency starting, etc. It recently products to different countries. launched its automotive and mo- expand and increase its The company has its strong ‘in- torcycle range of batteries for the share in the after-market house’ R&D wing to design and after-market segment and has also for automotive and stand- produce batteries like Silver Oxide- started addressing the growing de- by applications. Zinc, Ni-Cd and Silver –Chloride mand for standby batteries (tubular and VRLA) used for UPS and inverters. In a short span, the company has expanded the range of products from 2.5 Ah to 200 Ah capacity, as also the market network across India. Perhaps this is the only company, apart from a few others engaged in manufacturing the Ca-Ca range of batteries, with its manufacturing capacity of over a million batteries. It is also catering to the PL business of a few established brands in India. The new generation Panther and high energy brands are manufactured to address ‘long life’ and ‘maintenance-free’ operations under any conditions. Channel partner appointment is in progress, and the company feels that service to the end-customer is the real driving force behind improvement of after-market business. w

MOTORINDIA l September 2012 117 vehicle zone

arveen Travels (P) Ltd., a unit of AB Business Enterprises has been a pioneer in Indian Transportation services since its Pinception in 1980. Holding the eminent status of being India’s first ISO 9001:2008 certified transport company, the company has signed a deal with Daimler India Commercial Vehicles (DICV) for trans- porting the latter’s employees to and from its facility at Oragadam. The well-established bus operator will cater to DICV’s needs with its fleet of Mercedes Benz coaches. Parveen also offers transportation solutions for various other companies such as TCS, CTS, Wipro, Sam- sung, Renault-Nissan and Hyundai.

118 MOTORINDIA l September 2012 vehicle zone

way in implementing IT solutions to a big way. Leveraging on years of improve the standard of bus trans- experience in providing transport portation. The company has a 24X7 management solutions, the company helpline which includes a dedicated effectively collaborates with its cus- operation team in its clients’ campus tomers to achieve optimal results. to ensure perfect time management Parveen Travels, through the AB by monitoring the on-road position Group, works with an integrated serv- of all its vehicles. All its vehicles are ice facility called Motorzone where fitted with GPRS equipment which heavy vehicles like buses, mini buses, constantly transmits information tempo travelers, and other transport about the vehicles’ position, speed, vehicles are serviced and maintained. distance and duration of each halt. It AMC support is also offered to cus- also has a backup fleet which acts as tomers. The company also caters to replacement during emergency. manpower requirements by bringing The company is effective in com- up well-trained professional drivers municating with its customers and is and cleaners through its Professional also open to feedback for taking cor- Consultancy Services. rective actions if necessary. Its online The AB Group has a Professional Parveen’s Transport Management System encompasses • Understanding the operational needs of clients. • Active partnership/consultation with clients. • Route studying and optimization for cost control. • Vehicle Monitoring System. • Staff Tracking System. • Management Information system (MIS).

Customer Relationship Management Driver Training Academy (PDTA), (CRM) module facilitates transparent a unit of Professional Consultants, is and seamless communication and is a combination of modern infrastruc- ably guided by its dedicated service ture and highly-skilled trainers. The support team. state-of-the-art facility is equipped The company has been in the trans- Transport Management to give training to both amateurs portation sector since the last four System and experienced drivers. While the decades and has been constantly im- Over the years Parveen has suc- amateurs are taught the importance proving the standard of bus transpor- cessfully developed and implement- of safety and acquire the experience tation in the country with its quality ed transport management solutions to commute, the experienced drivers service. It has a fleet strength of over that encompass complete design and will find PDTA a hub that refreshes 750 coaches which shuttle more than operations for corporate houses. The and updates them. With an array of 22,500 employees in the manufactur- company undertakes the complete awards and accolades such as Global ing and IT sectors every day. Parveen set of tasks right from planning of Leadership Award 2011, India To- gives special focus to accident-free routes, organizing the fleet, schedul- day Award 2011, Apollo CV Award, driving by conducting regular driver ing, monitoring, and maintenance of and National Tourism Award for five training programmes with a view of vehicles. This packaged service not consecutive years, Parveen Travels improving the standard of the driver only relieves its corporate custom- has set a benchmark for fleet opera- community in the country. ers from the cumbersome task of tors and continues to raise the stand- Bridging the gap with IT transport management, but also helps ard of bus transportation in the coun- Parveen Travels has gone a long them in saving operational costs in try. w

MOTORINDIA l September 2012 119 component zone

Luminator Technology Group takes over Mobitec

“Mobitec and all the other brands will continue to exist at their new parent company. For our customers, this means that we can continue to offer the products from the expanded group of companies and maintain the same high level of service quality.” – Mr. Oliver Wels panies that are new global service network. “The known for their merger will help make the Lumina- passenger in- tor Technology Group even more formation and capable and customer-oriented in lighting sys- the future and will give our custom- tems. The tech- ers access to the full range of exper- nologies devel- tise available in the group”, adds oped by these Wels. The Mobitec Group, which is companies are used in buses, trains In the 2011 calendar year, the Lu- based in Herrljunga, Sweden, and and airplanes around the world. minator Technology Group generat- maintains four additional locations “We’re delighted that Mobitec has ed $186 million in turnover and em- around the world, was taken over become part of the Luminator Tech- ployed 600 workers. Turnover at the by the US-based Luminator Tech- nology Group,” says Oliver Wels, acquired company DRI totalled $82 nology Group on July 10. Mobitec, Vice President of Global Sales & million with over 260 employees in which manufactures electronic pas- Marketing at the Luminator Tech- 2011. Its customers include numer- senger information systems, be- nology Group. ous well-known bus manufactur- longed to the DRI Corporation. It At the same time, the group plans ers and transit operators around the was acquired in full by the Lumi- to develop new technologies and a world. w nator Technology Group. Mobitec has thus joined a leading group of companies specializing in electronic information systems. Mobitec and its sister company Twin Vision, which is based in the US, now belong to a group of companies that operate on a global scale. The Luminator Technology Group includes Luminator, Lawo and Focon, three com-

120 MOTORINDIA l September 2012 technology

Urgent need to enforce EU model ELV directive in India Focus on pollution control, vehicle recyclability

By P. Parthasarathy, President ES, APA Engineering

There is growing awareness of environmental issues, includ- Japan, Korea and China have en- ing pollution and recyclability of forced legislations similar to ELV manufactured goods. One of the directive 2000/53/EC, while many biggest polluters has been used automotive OEMS in North America cars disposed at junk yards. In are voluntarily following the EU ELV order to tackle this issue, the Eu- directive which also requires setting ropean Union (EU) has taken an up of recycling infrastructure and initiative to address these issues collection centers to collect the End of by enforcing an End-of-Life Ve- Life vehicles from the end consumers. hicles (ELV) directive which fo- which are placed in the European cuses on reducing the hazardous market. substances and improving the re- The maximum allowable per- cyclability of the car. centage for lead, mercury and The ELV directive also requires hexavalent chromium is 0.1 per OEM and other stake-holders to cent and cadmium is 0.01 per establish several collection cent- cent by weight. In order to meet ers to collect old cars and dis- this regulation, OEMs require all mantle / recycle as per the direc- their suppliers to provide detailed tive listed standards / targets. The Mr. P. Parthasarathy material breakdown analysis re- directive requires automotive ports (Material Data Sheets) on manufacturers to prove that their car ELV directive 2000/53/EC was is- the parts and assemblies they sup- meets the recyclability target (95 per sued by the European Union in 2000 ply. OEMs such as Audi, BMW, cent by 2015) and restrict the usage with an aim to reduce hazardous Daimler, Ford, Opel, Porsche, VW of hazardous chemicals such as Pb, substances such as lead, cadmium, and Volvo formed a consortium for Cd, Hg and Cr6+. mercury and hexavalent chromium automotive manufacturers to regis- There is a strong need to have in M1 (cars with less than eight pas- ter Material Data Sheets of all their such kind of Indian ELV directive sengers, excluding the driver seat) products in an online database called to manage the growing automobile and N1 (trucks less than 3.5 ton- the International Material Data Sys- population. A few automotive in- nage GVW) category vehicles. This tem (IMDS). The rest of the OEMs dustry bodies have been reportedly directive has also enforced strict and suppliers gradually joined the working to frame a similar directive norms on recyclability targets such group. Now it has more than 55 and get it approved by the Indian as 95 per cent recyclability / recov- OEMs and all of their suppliers. Government. erability by 2015 for all the vehicles In this IMDS database, every sup-

122 MOTORINDIA l September 2012 technology

ELV global scenario

plier and OEM has to register their chain use the IMDS database as a end-to-end IMDS compliance sup- company in order to report their tool to the meet ELV requirements. port. Recently APA won two ma- IMDS sheets. Once registered, sup- It requires all the materials used in jor orders from leading global auto pliers will be able to submit the the vehicle to categorize into seven MNCs. IMDS data sheet to their customers material families as per ISO 22628 The recent happenings in India with the complete part, material, ba- – metals, polymers, excluding elas- towards ELV directive for vehicles sic substance details and recyclate tomers, elastomers, glass, fluids, are NATRiP establishing the Re- information. modified organic natural materials cycle Demo Center in Chennai and Close to 90,000 suppliers are now (MONM), and others (components, a few automotive industry bodies registered in IMDS, with 170,000+ materials where a detailed break- working towards framing the ELV active users. Started with 7 OEM down cannot be established). directive. The purpose of the Demo participation in IMDS in 2000, cur- 2015 type approval target – recy- Center is research in ELV recycle in rently 55+ auto companies partici- clability >85 per cent and recover- India. Indian OEMs have provided pate as OEMs in IMDS. Almost 99 ability >95 per cent. old vehicles for the center. per cent of OEMs and auto supply APA Engineering, a Chennai- Maruti has already taken an ini- based engineering and sourcing tiative to make its vehicles ELV- The ELV directive has two major re- company, has a very strong team to compliant and launched a few ELV- quirements – improving the recy- support the automotive OEMs and compliant cars already in the market. clability of the vehicle parts and supply chain to meet the ELV direc- There is every likelihood of a sim- minimizing the use of hazardous sub- tive requirements for the automo- ilar ELV being introduced in India stances such as Pb, Cd, Hg and Cr6+. tive industry, especially by giving soon. w

MOTORINDIA l September 2012 123 component zone

Bharat Forge Ltd. (BFL), the flagship company of the over $2.5 billion Kalyani Group, is vigorously working on development of a business model that is better insulated from the vagaries of the external environment. The company has invested in creating capacities and global manufacturing footprint to maximise growth opportunities across sectors and geographies.

BFL’s performance in 2011-12 Implementation of reforms, cou- vironment, Bharat Forge put up represented a big step forward. It pled with removal of bottlenecks an impressive performance in FY was one of the most challenging that have stifled economic growth, 2012 on the back of robust growth years for the global economy. After would restore investor confidence in the commercial vehicle industry achieving consistently high growth and revive the momentum for sus- globally and sustained ramp-up of over the past eight years, the Indian tained high economic growth”. – non-automotive business. The ma- economy has apparently run into a Baba. N. Kalyani, Chairman. jor highlights of the standalone busi- turbulent weather over the last few BFL has been focusing on build- ness in FY2012 were the significant months. The global economic uncer- ing state-of-the-art forging and ma- growth of 42 per cent in exports to tainty, coupled with lack of political chining facilities, investing on new Rs. 17,347 million and the contin- consensus in India for implementa- technologies and R&D, opening up ued traction in non-auto sales, both tion of major economic reforms, new growth sectors as key verticals, domestic and exports, rising by 32 posed challenges to BFL. and developing new markets, geog- per cent to Rs. 12,885 million. “I am confident that if the Govern- raphies and customers for products Growth in automotive ment is able to take the initiatives in as well as solutions. Over the next markets certain key areas and kickstart eco- few years, Bharat Forge is expected BFL is a leading supplier of criti- nomic reforms, the economy will to consistently leverage these to cre- cal & safety components for the turn around in this fiscal to grow ate much higher levels of customer automotive market globally with at about 6.5-7 per cent. This would delight and cement its leadership po- a well-diversified customer base provide a platform to return to 8-9 sition in the market. across all geographies. The focus per cent growth in the medium term. Despite the sluggish external en- of the automotive business has been

124 MOTORINDIA l September 2012 component zone

limited to the medium & heavy commercial vehicles due to the company focus on technologically advanced product requirement. However, BFL has started addressing the light and small commercial vehicle segment which is witnessing a shift in product requirement on the back of change in emission norms. India The Indian automobile industry witnessed a slowdown in growth, with total four-wheel automobile production, including passenger cars and CVs growing by 7.8 per cent. Slowdown was mainly in passenger cars, which grew by only 4.7 per cent. The CV segment, which is the company’s primary market, recorded a healthy growth of 19.8 per cent. This was driven primarily by light CVs (LCVs), which grew by 27.3 per cent, while medium and heavy CVs (M&HCV’s) grew by 10.8 per cent. USA However, the revival witnessed in CY2010 continued in CY2011. Total four-wheeler production grew by 10.8 per cent. Passenger car sales remained robust with a growth of Mr. Baba. N. Kalyani, Chairman, Bharat Forge

MOTORINDIA l September 2012 125 component zone

The outlook for FY13 looks a bit murky with slowdown in the Indian automotive industry and the Eurozone debt crisis 10.4 per cent, while LCVs grew by uncertainties, however, the sales of impacting sentiments and demand. 9.4 per cent. The largest growth was both MCVs and HCVs were robust, However, Bharat Forge is in a good seen in the M&HCV segment that growing at 25.2 per cent and 35.8 shape with lean Indian operations, recorded 57.4 per cent growth in CY per cent respectively. strong balance sheet and a balanced 2011. BFL has strong relations in It needs to be noted that a large business model to weather any un- the US CV market and has signifi- share of component suppliers in Eu- certainty. BFL believes that its next cantly increased its auto exports to rope are owned by small entities. It round of growth will be propelled the US on the back of supplies to the is often difficult for them to main- by creating opportunities through M&HCV segment. It is important to tain steady supplies in such volatile innovation, which can be supported note that the US now has an aging markets. The OEMs have increas- by the strength of its customer rela- truck fleet which augurs well for the ingly realised the risks of relying tionships. market. on such companies for their regular Over the years, Bharat Forge has Europe business needs and are looking at invested in new technologies, R&D Driven by economic uncertainty and the wor- risome fate of the Euro zone, Europe remains a very volatile market with no long-term trends and developments in the ho- rizon. The total four-wheeler market vendor consolidation and focusing and solution-providing capabilities. grew by a meagre 0.4 per cent in on developing relationships with Combining such competencies with CY2011. Passenger cars, by far the technologically strong and finan- the company’s best-in-class, world- largest segment of European mar- cially stable suppliers. Bharat Forge scale manufacturing capacities and kets, witnessed a 1.4 per cent drop is discussing with European OEMs skills will result in Bharat Forge be- in sales – with the high end seg- for better alignment, and devising a ing an innovation-led, end-to-end ment faring better than the middle strategy of dealing with the opportu- solutions provider and a dynamic and low end. Coincidentally, Bharat nities arising out of this uncertainty partner of its customers, forging Forge largely supplies products for to increase its market share or add ahead as always. higher end passenger cars. Despite new customers. w

126 MOTORINDIA l September 2012

Automechanika preview

ACMA to hold ‘India Day’ at Automechanika Frankfurt

he Automotive Component Manufactur- ers Association of India (ACMA) is the Tapex body representing the interest of the Indian auto components industry. It is an ISO 9001:2008 certified association that is actively involved in trade promotion, technology upgrades, quality enhancement and collection & dissemina- tion of information. Its charter is to develop a globally competitive Indian auto component industry and strengthen its role in national economic development. It also initiates steps to promote business through international alliances. The Engineering Export Promotion Council (EEPC), set up by the Ministry of Commerce & Industry in 1955, Mr. Arvind Kapur, ACMA President is the largest trade promotion organization in India. Out of its 13,000-plus members, nearly 2,000 come from coming edition, around 30 ACMA member-companies the auto component industry. It participates in major spread over 651 sq.m. of exhibition space in Hall 6.2 engineering exhibitions all over the world and through and 48 EEPC member-companies spread over 517 sq.m. its wide network of international partners, and acts as a of exhibition space in Hall 1.2, Hall 6.3 and Hall 3.1 trusted link between the Indian and foreign companies. will showcase the potential and technology of the Indian ACMA returns to Automechanika Frankfurt and will auto component industry in a competitive environment. once again occupy prime space in Hall 6.2. In the forth- The industry aggregate around the globe is expected

128 MOTORINDIA l September 2012 Automechanika preview

to cross $1 trillion by 2012 with At the Automechanika a growth rate of over 5 per cent. Innovation Award 2012 However, the growth of the au- special show, the prize- tomobile industry and the auto- winners’ innovations will mobile aftermarket in emerging be on display. Launched in 1996, the internationally recognised economies is more promising and Award will be given for nine categories – parts, systems, tuning, is forecasted to outshine the ma- accessories, repair/diagnostics, repair/maintenance, IT & man- ture markets in the coming years. agement, service station & car wash, OE products & services. In this scenario, the Indian after- A jury of renowned experts evaluates entries in accordance with market has a promising future and the criteria of innovative content and quality of solution, economic is valued at EUR 4.85 billion; the efficiency, user benefit, aftermarket relevance, safety & quality and auto components aftermarket in contribution to environmental protection, resource conservation India is valued at EUR 3.65 billion and sustainability. and EUR 1.18 billion for services. In the coming five to seven years, the auto components aftermarket of India is expected to be Truck Competence a global chartbuster. Currently, the There’s a great deal of ‘Truck Competence’ to be found at Au- total number of ‘on-road’ vehicles tomechanika. And, for the first time, visitors to the fair are able to in India stands at over 94.7 million. discover exactly what and how much with the ‘Truck Competence’ Out of this two-wheelers constitut- visitor guide. The new brochure provides visitors interested in the ed 76 per cent, PVs 15 per cent and truck sector with an overview of all exhibitors, including location at the remaining 9 per cent are consti- the fair, arranged by Automechanika product groups. tuted by CVs and three-wheelers. And the subject of ‘Truck Competence’ is also online, so that visi- With this background, ACMA, tors are able to search for exhibitors and products specialising in EEPC and Messe Frankfurt coin- the truck business by clicking on the ‘Truck Competence’ filter in ciding with Automechanika Frank- the online search engine. Additionally, an event for truck aficiona- furt are organising ‘India Day’ on dos is also planned. September 13. Eminent speakers from the industry will be addressing on: Perspectives of the Indian Automotive Industry – Opportu- International b2b events nities and Challenges with a spe- During Automechanika Frankfurt, there will be a b2b events cial presentation on the recently- organized by HA Hessen Agentur GmbH, the Automotive-Cluster launched ACMA Automechanika RheinMainNeckar, FrankfurtRheinMain GmbH, the Enterprise Eu- New Delhi to be held from Febru- rope Network and regional partners, and it is a convenient and ef- ary 7-10, 2013. ‘India Day’ will fective opportunity to make interesting contacts, to come to know also provide networking opportu- about foreign markets and to catch up on intellectual property as- nities within the automotive com- pects of international business. munity. Suppliers, manufacturers, service providers and research insti- For details, e-mail to: Ms. tutes from the automotive industry are welcome to use the Interna- Smeeta More, smeeta.moreatindia. tional b2b Events for Automotive Suppliers during Automechanika messefrankfurt.com as platform to meet potential business and technology partners. For details, visit: www.b2match.eu/automechanika2012 w

MOTORINDIA l September 2012 129 lubes & fuels

IndianOil gross turnover up HPCL sales 12.4% at Rs. 101,936 crores exceed industry average growth mestic) in the absence of sanction of Hindustan Petroleum Corporation budgetary support from the Govern- Ltd. (HPCL) has registered gross ment, foreign exchange loss of Rs. sales of Rs. 46,406 crores for April- 3,187 crores, inventory valuation loss June 2012 as against Rs. 43,899 crores of Rs. 4,062 crores affecting gross re- in the corresponding previous period, fining margin, and to higher interest an increase of 5.7 per cent. Domestic cost of Rs. 1,849 crores following de- sales of petroleum products increased lay in receipt of compensation from to 7.44 million tonnes, registering a the Government. The gross turnover growth of above 6.9 per cent over the for the first quarter of the current year first quarter of the previous year, as ended June 2012 has increased by against the industry average growth 12.4 per cent to Rs. 101,936 crores of 4.2 per cent. Sales of high-speed from Rs. 90,713 crores during the diesel increased by 12.2 per cent and same period last year. that of LPG by 8.2 per cent. Mr. RS Butola, Chairman, said: The refineries at Mumbai and Vi- “IndianOil sold 19.443 million Mr. RS Butola, Chairman, IndianOil sakh processed 3.58 million tonnes tonnes of products, including ex- of crude during April-June as against Indian Oil Corporation Ltd. has ports, during the first quarter of 2012- 3.97 million tonnes during the same suffered a loss of Rs. 22,451 crores 13. Our quarterly refining through- period in 2011. The thruput was low- for the first quarter of the current put was 13.579 million tonnes and er because of shutdown at both the financial year ended June 2012 as the throughput of the Corporation’s refineries. compared to a loss of Rs. 3,719 countrywide pipelines network was On the financial front, the loss for crores for the corresponding quarter 18.583 million tonnes. The gross re- April-June 2012 was Rs. 9,249 crores of the previous year. fining margin during the first quarter (Rs. 3,080 crores). The loss during The losses in the current quarter was $4.81 per bbl which was mainly the quarter was primarily on account are mainly due to unmet under-real- on account of Inventory valuation of absorption of under-recoveries on isation of Rs. 17,485 crores on sale loss of Rs. 4,062 crores which trans- sale of sensitive petroleum products of HSD, SKO (PDS) and LPG (do- lates to $7.54 per bbl”. amounting to Rs. 7,321 crores. The interest cost for the period was also higher at Rs. 549 crores (Rs. 264 crores). During the quarter the Corporation also incurred inventory loss because of a decline in international prices of crude and petroleum products. The diesel hydrotreater projects at Mumbai and Visakh refineries are at an advanced stage and are expected to be completed by September end. w

130 MOTORINDIA l September 2012 events

Namakkal Auto Fair evokes good response

The Namakkal Auto Fair 2012 organised by the Namakkal Motor Spare Parts Dealers Association (NMSPDA) provided a perfect platform for companies to showcase their latest offerings to the automotive community. Several reputed component manufacturers made their presence at the show which had good response not only from the local region but from all over India. The fair provided a good opportunity for enthusiasts in the industry to meet, discuss and share their views and opinions and to transact good business. Mr. R. Dinesh, Jt. Managing Director, TVS, who was the chief guest at the inaugural function, gave some interesting insights into the automotive fraternity gathered at the event. Apart from his optimistic view that the automotive industry would soon be back on track, he also highlighted the fact that the aftermarket segment is one which does not depend much on the economy and that the spareparts business would flourish as long as vehicles keep running on roads. He also felt that the only challenge ahead for the aftermarket segment Mr. R. Dinesh, Jt. Managing Director, TVS, delivering the inaugural address would be to keep up with the rapid technological upgradation that the in- at the Namakkal Auto Fair. dustry is undergoing.

Mr. S. Muthukrishnan, Consultant - Marketing (Adv. & Mr. Sambit Dash, Manager - Sales, Wheels India Ltd., Publicity), Delphi-TVS Diesel Systems Ltd., (extreme right), receiving Mr. Dinesh at the company stall explaining the product features to Mr. Dinesh Media Partner: MOTORINDIA MOTORINDIA l September 2012 131 events

The triumphant duo of Brakes India at the well-decorated The trusted Leyparts team stall

Mr. Jeevan Rao, Marketing Department, Rane Brake The young and energetic Bosch team Linings Ltd., (centre), with his colleagues

A stall visitor showing keen interest in Firestone TVS Mr. Jatinder Pushkarna, Dy. General Manager, Jamna products Auto Industries, (extreme right), with his team

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The prize-winning Wurth sales & service team The jubilant Fenner team with a fine display of products

Mr. Arnob Guha, Dy. G.M. - Product Development, Gibral- Team Meritor posing with the company products tar Airsprings Pvt. Ltd., (extreme right), with his sales team

Mr. H. Venkataramani, Dy. Manager - Marketing, Lucas- The WABCO sales team explaining the safety features of TVS, (extreme left), attending to stall visitors the company products

MOTORINDIA l September 2012 133 events

Mr. Janardhanan Iyer, Regional Sales Manager – India, Mr. R. Janarthanan, Head - Market Development, Roots Alcoa Wheel Products, (second from right), along with the Industries India Ltd., (fourth from left), with his team team from Channel Partners - SKM Alucom

Mr. Seetharamarao Sura, Dy. Manager - Marketing, LuK Mr. K. Soundara Rajan, Sales Officer, Talbros, (second India Pvt. Ltd., (extreme left), with his colleagues at the from right), with his colleagues at the company stall Schaeffler stall

Mr. K. Ramesh Babu, Asst. Manager - Sales, Madras Engi- neering Industries, (second from right), and company ex- Mr. P. Ramaswamy, Manager - Marketing, Alkraft, (second ecutives explaining product features to visitors from right), demonstrating a company product

134 MOTORINDIA l September 2012 events

The Turbo Energy stall, a main attraction for exhibition visitors The enterprising InterPump staff at the company stall

Mr. Tarun Bhatnagar, General Manager (Distribution), Mr. K.M. Johnson, Regional Manager Sales - South, Hella In- Orbit Bearings, getting ready to receive stall visitors dia Lighting, explaining the features of the latest product

The stall visitors seem quite impressed with the gaskets from Sankar Sealing Zoomol Lubricants’ sales team attending to stall visitors

MOTORINDIA l September 2012 135 economy

CII President outlines strategy for economic revival

Mr. Adi Godrej, CII President, addressing the CII members at an Interactive Session held in Chennai. The others (from left) are Mr. Sujith Haridas, Regional Director, CII-SR, Mr. R. Dinesh, Chairman, CII Tamil Nadu State Council, Mr. B. Santhanam, Deputy Chairman, CII - Southern Region, Mr. Chandrajit Banerjee, CII Director- General, and Mr. Narayan Sethuramon, Vice Chairman, CII Tamil Nadu State Council.

The deteriorating macro-economic conditions and worsening growth outlook cause widespread concern. It is essential therefore that measures for economic revival, reforms and good governance are accorded the highest priority to get back to a high GDP growth trajectory, according to Mr. Adi Godrej, President, Confederation of Indian Industry (CII).

Addressing a press conference in CII has been continuously engaging “Opening up of foreign direct in- Chennai, Mr. Godrej, who took over with the Government and political vestment in critical sectors such as as its President recently, said that parties in its bid to promote reforms single brand retail, civil aviation and CII’s Theme for 2012-13 will be in critical areas such as banking, in- defence and allowing FDI in multi- “Reviving Economic Growth with a surance, land acquisition, manufac- brand retail will also go a long way strong focus on Reforms and Gov- turing, mining, etc. This has been in improving the sentiments on eco- ernance”. Structural reforms, both stepped up in the current year as nomic growth and also help increase at the Central and State levels, need certain reforms have the potential to capital flows”. to be undertaken on a war footing. be game-changers for the economy. Mr. Godrej further observed fur-

136 MOTORINDIA l September 2012 economy

ther that to stimulate investments, hydrocarbon reforms to alleviate must facilitate reforms such as CII is advocating further reduction fuel shortages which have proved a strengthening legislation around in interest rates by 100 bps by De- key bottleneck for the power sector, contract farming; de-notification cember 2012 and easing banks’ re- distribution reforms in this space are of vegetables and other perishables serve ratio, accompanied by meas- another critical area. There is also from the APMC list and long-term ures to unclog the supply side to a need to explore implementation land leasing of agricultural land for control inflation. of renewable energy-based power cultivation with farmers still retain- The next generation of economic projects to reduce power deficit in ing their ownership rights. reforms is at the State level. Some of the country. According to Mr. Godrej, India’s the key reforms that CII would ad- Manufacturing can and should infrastructure deficit is widely ac- vocate relate to agriculture, power, become the engine of growth for knowledged as a critical impedi- land acquisition and procedural & the Indian economy. For this, CII ment to achieving higher growth. clearance issues faced in setting up is engaging with the Government to Therefore, to step up the pace of new businesses. CII proposes to set identify and promote four-five large infrastructure development, CII has up a Central task force to monitor manufacturing zones in resource-en- launched a task force to monitor im- State-level reforms. dowed States with a focus on green plementation of projects of national On the energy front, while CII manufacturing. importance. will continue to advocate coal and In the agriculture sector, States w awards AL Supplier Award for Orbit Bearings

Orbit Bearings received an Award for its “Out- standing Support” from Ashok Leyland at the Sup- plier Summit 2012. This Award further strengthens the relationship between the two companies. Orbit engineers work with its OEM customers to define application problems and provide solutions that help end-users get the most out of their products. Orbit Technology Center invests in design development, testing facilities and friction management. This has helped in having the shortest lead time for developing customized bearings. In order to meet the demand of its existing OEM customers, Orbit is doubling its production capacity to 10 million taper and cylindrical roller bearings annually. It is also setting up a state-of-the-art plant with all fully automatic manufacturing lines imported from Europe. Orbit’s commitment to quality has made it a pre- Mr. Vinesh Patel, Managing Director, Orbit Bearings, (right), ferred supplier to different national and international receiving the Award from Mr. Vinod K. Dasari, Managing Di- companies. It exports its bearings to North America, rector, and Mr. Anuj Kathuria, Executive Director, Sourcing & Europe and Latin America. Supply Chain, Ashok Leyland

MOTORINDIA l September 2012 137 awards

Ashok Leyland once again bags EEPC Top Exporter Award

Mr. Antony Lobo, Special Director - International Operations, Ashok Leyland, receiving the Award from Dr. M.M. Pallam Raju, Union Minister of State for Defence, at a function held in Hyderabad

Ashok Leyland bagged the Top Exporter Gold nized as a top exporter for the third consecutive year. Award for the third consecutive year from the Engi- This shows our constant endeavor to understand the neering and Export Promotion Council India (EEPC) customer requirements of different geographies and - Southern Region under the ‘Large Enterprise’ cat- deliver best-suited and world class transportation so- egory. Mr. Antony Lobo, Special Director - Inter- lutions for those markets.” national Operations, received the Award on behalf Ashok Leyland exports for 2010-11 grew by 72 per of the company from Dr. M.M. Pallam Raju, Union cent compared to the previous year. In 2011-12, the Minister of State for Defence, at a function held in company achieved a new high in international opera- Hyderabad. tions of 12,852 numbers, a rise of 25 per cent over Commenting on the recognition, Mr. Vinod K. 2010-11. Currently, it exports its range of products to Dasari, Managing Director, Ashok Leyland, said: “It over 30 countries. is indeed a matter of great pride for us to be recog- w

138 MOTORINDIA l September 2012 MOTORINDIA l September 2012 139 innovation

How redBus has revolutionized Indian bus ticketing

Towards the close of 2005, a Senior design engineer at Texas Instruments was left strand- ed in Bangalore, without being able to join his family for a festival in Hyderabad owing to unavailability of bus seats. This was none other than Mr. Phanindra Sama, who was prompted then to find some means of improving the unorganised way of bus-ticketing in the country and who became the CEO of India’s largest bus-ticketing company today, namely, redBus.

In a casual chat with MOTORINDIA, Phani, as he is known among his friends, talks on how redBus commenced operations in a small way, but gathered momentum soon to grow into its present size. True, in those days there was no organised way of making available seats for passengers in buses which plied on a particular route. Travel agents would make phone calls to bus operators to find out seat availability, a long and Mr. Phanindra Sama, CEO, redBus tedious process. Phani was quick enough to find an IT- ware did not have much response the site. Both of them are Bana- based solution to vastly improve bus from operators as they were not glore-based operators. For three ticketing and travel facilities in the convinced of its viability. Phani had years, the quota-based selling con- country. to be content with selling bus seats tinued. However, with the growth Jointly with a couple of his col- through ‘quotas’ on www.redBus.in. in number of customers, BOSS was lege mates, he worked on a software The first bus operator to sign up relaunched. The operators soon re- for bus operators which was later with redBus was Jabbar Travels, alized the benefits of technology, named Bus Operator Software Sys- while Rajesh Travels was the first and buoyed by the prospects of an tem (BOSSTM). Initially, the soft- operator’s seat to be sold through online ticketing portal, hundreds

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of them boarded redBus within an ing field among year. large and small Why the brand name ‘redBus’?! Now the country’s largest bus- bus operators, • Phani was inspired by Richard Branson’s auto- ticketing company, redBus is cur- the quality of biography. The logo of Richard’s company, Vir- rently present in 25 States with 26 service provid- gin Atlantic, is RED. offices and seven call centres. It ed deciding the • The founders wanted a color in the brand name, employs around 500 people, offer- operators’ suc- so that people could link to the brand whenever ing close to 19,000+ services every cess. The star- they came across the color! RED was closer to day. It has 800+ bus operators, 700 rating feedback being chosen! of whom use BOSS. Among them given by trav- • Being a website company, the color had to be are two government operators, ellers reflects short and easy to type - RED was frozen! RSRTC in Rajasthan and Goa Ka- the bus quality, • Just ‘red’ was incomplete, so they wanted to damba. With many awards already punctuality and improve upon it. ‘Redline’ was the first choice under its belt, redBus had more than staff behaviour. doubled its revenue last year. With This comes in adopted from the ‘redline’ buses which oper- a turnover of about Rs. 300 crores handy for other ated on Delhi roads, but the domain redline.in last year, the company expects this customers who was unavailable! year’s growth to be much better. visit the site. • BUS obviously related directly to the industry Apart from redBus and BOSS, Also, bus op- which they would operate in. Thus came into ex- for consumers and bus operators erators have istence the brand ‘redBus’. respectively, SeatSellerTM is the complete trust company’s face for travel agents. in the genuineness of feedback re- vantageous both to operators and The three brands together provide a ceived that drives them to improve travellers. well-knit eco-system for the coun- quality standards in order to rope in Company statistics reveal that try’s bus transportation industry more customers. All this has result- almost 25 per cent of redBus users whose annual worth is $2.5 billion, ed in the whole bus industry in the are first-time bus travellers. Even with 220 million seats being sold country moving to a higher level in then the company is expanding the every year. terms of quality of service, custom- bus industry consumer base by 25 Big IT power er satisfaction, comfort, safety, etc. per cent every year. One third of With the entry of multinationals, Another powerful and interesting the passengers, around 33 per cent, especially Volvo, and improvement outcome of the IT-based solution is have switched over to multi-axle in road infrastructure, the Indian bus the identification of potential new vehicles since their entry into the industry is witnessing rapid growth. routes. When a customer searches Indian market a decade ago. redBus seems to have arrived just for buses on a specific route but redBus has a dedicated team at the right time to catalyse the seg- fails in his bid, redBus conveys the working on new initiatives to im- ment’s growth by providing a one- information over a period of time prove customer service. One of stop portal for bus operators, travel to bus operators. This system could the latest additions to the site is the agents and, most importantly, pas- lead to introduction of new routes, ‘tips’, a feature that helps travellers sengers. Information technology a boon to bus operators as well to provide simple and valuable in- seems to stir up a revolution in most as travellers. Another possibility formation about the buses to other fields, including bus transport. Over through redBus has been to set right users. the last decade, the number of bus the supply-demand mismatch which On the whole, redBus.in has operators and bus routes in India could divert buses from routes that brought about an IT revolution in has grown exponentially. attract less demand to those which the Indian bus industry. redBus has created a level play- require more buses. Again, it is ad- w

MOTORINDIA l September 2012 141 men at the helm

Philippe Divry is new Volvo India MD

The Volvo Group has announced the appointment of Mr. Philippe Divry as the new Managing Director of Volvo India Pvt. Ltd. (VIPL) and Senior Vice President, Truck Joint Ventures India, Volvo Group. As Managing Director of VIPL, one of the three legal entities of the Volvo Group in India, besides Volvo Buses India and VE Commercial Vehicles (VECV), Mr. Divry will oversee the resourcing and optimization of the Volvo Group’s 4,000-plus workforce in India and support the ambitious growth plans of the group’s different business areas and functions. In this role, he becomes the statutory head of the Volvo Group organisation in India. A Senior Vice President at the group level, he is the highest ranking executive of the Volvo Group ever positioned in India. Mr. Divry also joins as a Board Member of the Volvo Group’s joint venture company VE Commercial Vehicles (VECV), which comprises the entire Eicher Motors truck and bus operations and the distribution of the Volvo Trucks vehicles. He will therefore be responsible for the overall performance of the truck business in India. Mr. Divry has over two decades of experience in the commercial vehicle and automotive industries, both at Renault Trucks and in the Volvo Group. He has rich background in operations and project management and was head of Volvo Powertrain France from 2003 to 2008. He has been part of significant co-operations with international partners and has exercised responsibilities as Board member in companies such as Prevost Cars in North America, Sunwin Bus Corporation of China and Volvo Logistics of Sweden.

International Transport Forum’s new Secretary-General

Internationally renowned academic Mr. José Viegas, a Portuguese national, has taken over as Secretary-General of the International Transport Forum. Mr. Viegas, who was elected by Ministers from the Fo- rum member-countries at their summit in May, joins the Forum from an internationally recognised career as an academic and consultant. As a professor of civil engineering at the University of Lisbon (Portugal) and chairman of TIS.pt, a transport consultancy firm, he has worked in all transport modes and managed collaborative networks across countries and economic sectors to advance better solutions in transport.

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Sanjay Chakravarty appointed Bosch Asia Pacific Head Mr. Sanjay Chakravarty, Senior General Manager & Head of Corporate Com- munication, Bosch India, has been appointed Director - Corporate Communica- tions, Brand Management and Sustainability of Bosch GmbH for the Asia Pacific region based in Shanghai. He will be heading this function as part of the Center of Competence for the APAC region overseeing countries from Japan to Australia. Mr. Dhiraj Singh will be the successor to Mr. Chakravarty. With his wide experience both in PR and Marcom, Mr. Singh will enhance the Bosch brand equity in India. Mr. Chakravarty has been instrumental in bringing about the brand transformation of the erstwhile company Mico to Bosch through a series of internal and external communication and branding tools running over a span of over three years. He is also responsible for the brand equity that Bosch currently enjoys in India. A post-graduate from the Indian Institute of Mass Communication - Delhi, Mr. Chakravarty is a hard core communication and brand professional with extensive industry experience. Commenting on this, Mr. V.K. Viswanathan, President, Bosch India, said: “I am extremely happy to see our Indian managers are in demand for such global responsibilities. As part of our well-structured HR programme, Bosch India will continue to groom potential managers to take up such challenging responsibilities.”

Anand Krishna joins Hella India Lighting as General Manager (Marketing & SCM) Mr. Anand Krishna has joined Hella India Lighting Ltd., Independent Aftermar- ket Division, as General Manager - Marketing & SCM. Prior to this, he was heading winning teams for Fleetguard Filters, Purolator India Ltd., and HBA & Co., UK. A management graduate from University of Wales (UK.) with over 19 years experience in planning and development of marketing and sales teams, design and implementation of successful marketing strategies and product promotion plans, Mr. Krishna is keen on increasing sales revenues, developing profitable and pro- ductive business relationships, co-ordinating with decision-makers, and building an extensive client base. He executed the Six Sigma Green Belt project in Marketing, applied TOC principles for business reengineering and successfully implemented the QCDGP System for retail business to improve productivity and profitability of manufacturing, sales and marketing functions of the company. With exceptional communication skills, Mr. Krishna has demonstrated his abili- ties in training and driving sales teams. He has also an extensive track record of training and mentoring people and special knowledge about Application of TOC Principals, Six Sigma Project Management and Export & Import / Inter- national Business (Africa, Europe, CIS and Asia).

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