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Annexure A-Covering letter

Dear Respondent

I am working as an Assistant Professor in PES's Modem College of Engineering -MBA Department at the University of . Currently I am pursuing Doctoral Research under the guidance of Prof Dr. G.K. Shirude-Director, Naralkar Institute of Career Development and Research. The topic of my research is "A Study of supply chain management system of Auto Industries in Pune Region with reference to Passenger Segment.

The questionnaire has been designed in such a way that it will not consume much of your precious time. Most of the questions can be answered by simply making a tick in a box. Kindly fill the questionnaire and in a way give me a helping hand towards the completion of my Research work.

• This is an independent research study and participation is voluntary. Your responses will be treated as strictly confidential and the anonymity of companies and respondents is assured.

• No person or firm will have access to your conq)leted questionnaire.

Should you require a copy of the abbreviated report of the findings please write your name, email address or telephone number at the end of the questionnaire.

I look forward to your positive response. Yours sincerely

Shraddha Khoje Research Student /-f •

Annexure B; Survey auestionnaire

SECTION 1: GENERAL INFORMATION

Company Profile

1. Name of Company

2. Address

3. Tel 4. Fax 5. Website

6. Contact person: 7. E-mail: 8. Position in conpany:

No of employees: [ ] Turnover : f

9. Yearofestablishment-

10. Indicate which of the following is/are your target customer(s) and the number of years your company has been supplying this market.

i. Original Equipment Manufacturers(OEM) ii. Original Equipment Suppliers(OES) iii. Automotive retail and after market iv. Other if any (Specify):

189 SECTION 2: CHALLENGES IN MANAGING SUPPLY CHAIN

Up to what extent your company experiences the following supplier relationship issues. Please use the comments block for further comments/explainations.

Challenging areas Tick ,If Up to what extent the challenge is? not a Please tick/circle at appropriate challenge place Lesser Extent Greater extent 1 Trust between you and your suppliers 2 3 4 5 2 Delivery of the right quality material 2 3 4 5 3 Availability of On-time delivery 2 3 4 5 4 Material Availability 2 3 4 5 5 Material lead time 2 3 4 5 6 Price/ Cost of the materials 2 3 4 5 7 Procurement lead time 2 3 4 5 8 Flexibility in supply chain 2 3 4 5 9 Financial stability of suppliers 2 3 4 5 10 capacity limitations of the suppliers 2 3 4 5 11 Poor communication between the 2 3 4 5 parties involved in supply chain 12 SuppUers do not have accreditation 2 3 4 5 13 Delays in oflf-loading vessels(Due to 2 3 4 5 congestion) 14 Delays in off loading vessels (Due to 2 3 4 5 Weather condition) 15 Road Delays 2 3 4 5 16 Prohibition of downtown circulation 2 3 4 5 17 Heavy Tolls 2 3 4 5 18 Dissuasion 2 3 4 5 19 Government rules and regulations 2 3 4 5 20 Taxes and levis 2 3 4 5

190 21 Supplier's ability to JIT 1 2 3 4 5 purchasing/Delivery 22 Demand forecasting 2 3 4 5 23 Output based on customer forecasts to 2 3 4 5 plan 24 Continuous Improvement 2 3 4 5 25 Cycle times 2 3 4 5 26 Inventory levels 2 3 4 5 27 Shortage of a key material 2 3 4 5 28 Outdated Technology 2 3 4 5 29 Cost of replacing outdated technology 2 3 4 5 30 Labour problem-availability of skills 2 3 4 5 31 Capacity limitations due to customer 2 3 4 5 order fluctuations 32 Use of information system such as ERP 2 3 4 5 33 Capacity limitations due to capital 2 3 4 5 funding 34 Use of RFID Technology 2 3 4 5 35 MRP implementation at suppliers end 2 3 4 5 36 Order fluctuations 2 3 4 5 37 Cancellation of orders 2 3 4 5 38 Difficulty in meeting quality 2 3 4 5 requirements 39 Pressure by OEMs to reduce prices 2 3 4 5 40 Expectations of customers to comply 2 3 4 5 with new technology are too high 41 Need of Supply Chain Risk 1 2 3 4 5 Management

191 SECTION 3: OVERVIEW OF SUPPLY CHAIN SYSTEM

1 .How do you manage your supply chain? Tick all that apply

I—'' Close partnership with suppliers I—12 Close partnership with customers Q JIT supply I—^ e-procurement Q EDI '—'^ Outsourcing '—''^ Subcontracting

'—^ Plan strategically D.o Supply Chain Benchmarking I 111 Vertical integration Few suppliers Many suppliers Holding safety stock LJI5 Use of external consultants '6 Other, please specify

2. How successftxl do you think is your company in managing its supply chain in general?

Not successful ^^ ^ , Somewhat _ ^ , Very Not successful _ , Successful ^ , at all successful successful

Ux D^ D^ D^ D7"

192 3. Which of the following you think that your company needs to do in order to manage its supply chain better? Tick all that apply.

Start Satisfied Not Improve Implementing already appropriat Close partnership with suppliers

Close partnership with customers

JIT supply

e-procurement

EDI

Outsourcing

Subcontracting

3PL

Plan strategically

Supply Chain Benchmarking

Vertical integration

Few suppliers

Many suppliers

Holding safety stock

Use of external consultants Other {specify)

4. Does your company have a separate logistics department? O YES DNO

5. Does your company have a clear logistics strategic plan? O YES DNO

193 6. What types of systems are currently in use in your company to support Supply Chain Management? Custom- Standard Not in made package use Material Requirements Planning (MRP) Manufacturing Resources Planning (MRPII) Enterprise Resource Planning (ERP) Warehouse Management System (WMS) Supply Chain Management (SCM) Customer Relationships Maragement (CRM) Supplier Relationships Management (SRM) Advanced Planning System (APS) Just In Time (JIT) Theory of Constraints (TOC) E-commerce E-business Decision support / expert system Radio Frequency Identification (RFID) Electronic Data Interchange (EDI) Bar coding Other {specify)

How much did you actually benefit fi-om using these systems?

Not at all Little Average Greatly A lot Don't know (1) (2) (3) (4) (5) Better quality of information Better quantity of information Flexibility Reduced lead-time in production Cost saving Forecasting Resource planning Better operational efficiency Reduced inventory level More accurate costing Increased coordination between Increased coordination with Increased coordination with Increased sales

194 Better quality of information Better quantity of information Flexibility

In what level your company is facing the problems below when using these systems?

No Signific Little Some Serious problem ant Don't problem problem problem at all problem know (1) (2) (3) (4) (5) Resistance to change from Resources shortages e.g. no maintenance and update Skills shortages e.g. Computer illiteracy within the company

Insufficient vendor support Hidden cost Integration with existing system Integration with supplier's system Integration with customer's system Other (specify)

9. What types of systems do you plan to implement in the near future (within the next 2 years)? Custom- Standard Not going made package to Material Requirements Planning (MRP) Manufacturing Resources Planning (MRPII) Enterprise Resource Planning (ERP) Warehouse Management System (WMS) Supply Chain Management (SCM) Customer Relationships Management (CRM) Supplier Relationships Management (SRM) Advanced Planning System (APS) Just In Time (JIT) Theory of Constraints (TOC) E-commerce E-business

195 Decision support / expert system Radio Frequency Identification (RFID) Electronic Data Interchange (EDI) Bar coding Other (specify)

10. How satisfied are you with the current pubUc policy regarding SCM?

Somewhat Satisfied Quite satisfied Very satisfied Not at all D D; D: D. Di

196 Annexure C: Interview /discussion schedule

Date: Name of the organisation: Person interviewed: Designation:

1. INTRODUCTION

The introduction explains the purpose of the study and the role of the respondents. In addition, the aim is to assure the participants' confidentiality.

The aim of interview schedule/discussion guide is to find out from the respondent regarding their perception about the supply chain challenges/problems. • What are the major supply chain challenges you face ? • What part of the SC are you concerned about? • Is In what part of the SC do you feel improvement is possible? • Do you follow JIT deliveries? • How many are your total number of suppliers? • How do you select supphers? How do you assess your suppliers? • What is the nature and scope of the suppUer development activities at your endr? • Are suppliers involved in the design and development processes? • What is the level of supplier innovation? How are suppliers encouraged to innovate and how is this communicated in your company? • How would you describe your relationships with your suppliers (eg traditional/partnership/collaborative)? • What quality accreditation do you expect your suppliers to have? • Do all suppliers have this accreditation?

197 • How do you handle nonconformance by suppliers (eg quality, meeting specs and delivery deadlines)? • How many shifts do you have? • How many deliveries do you have during shifts? • Do suppliers deliver during each shift? • What is your procurement poUcy? • How do you handle your demand management? • How do you forecast your demand? • What transport mode do your suppliers use - road/rail? • What are the challenges dealing with suppliers? • Does this result in increased cost of inventory in transit? • Are local components delivered via road and/or rail transport? • What are the challenges using road/rail transport (ie capacity and security)? • What type of containers are used? • Is packaging returned to suppliers? If "yes", does this act as a Kanban? • How do you handle returns to suppliers? • What type of ERP systems do you use? • How do you share data (demand and work flow data) with suppliers in the supply chain? • Do your suppliers operate on a supplier management inventory system? • Do you use EDI systems to exchange data with suppliers? • Do your suppliers recycle certain components? If so, how many and which components? • Do your suppliers remanufacture certain components? If so, how many and which components?

198 Annexure D: AutomobUe industries in India

AUTOMOBILE COMPANIES IN INDIA

Following is the List of Automobile Manufacturing Plants in various States of India. As of May 2011, 13 of the 29 states of India have Automobile Manufacturing Plants.

List of automobile plants in India

State Location Manufacturer Class

Andhra Pradesh Sri Citv Motors Commercial vehicles

Andhra Pradesh Satvavedu Hero MotoCorp Two wheelers

Telangana Zahirabad Mahindra & Mahindra Commercial vehicles

Haryana Dharuhera Hero Honda Two wheelers

Haryana Gurgaon Harlev-Davidson India Two wheelers

Haryana Gurgaon ^ Hero Honda Two wheelers

India Yamaha Motor Private Haryana Faridabad^ Two wheelers Limited

Haryana Manesar ^ Honda Two wheelers

Haryana Gureaon ^ Two wheelers

Haryana Gurgaon Passenger vehicles

Haryana Manesar Maruti Suzuki Passenger vehicles

Himachal Pradesh Nalagarh TVS Motors Two wheelers

International & Motors Himachal Pradesh Amb Passenger vehicles Limited

Himachal Pradesh Parwanoo TAPE Commercial vehicles

199 List of automobile plants in India

State Location Manufacturer Class

Jharkhand Jamshedpur Commercial vehicles

Madhya Pradesh Pithampur Mahindra &

Madhya Pradesh Pithampur Commercial vehicles

Madhya Pradesh Pithampur Commercial vehicles

MAN Force Trucks Private Madhya Pradesh Pithampur Commercial vehicles Limited

Madhya Pradesh Mandideep TAPE Tractors Commercial vehicles

Excavators,back hoe Madhya Pradesh Pithampur CNH Industrial loaders.

Punjab Nawanshahar SML Isuzu Limited Commercial vehicles

International Tractors Limited Farm Tractors & Agri Punjab Hoshiarpur (Sonalika Group) Equipments

Rajasthan Tapukara Passenger vehicles

1 Rajasthan Alwar Ashok Levland Limited Commercial vehicles

Rajasthan Alwar TAPE Tractors Commercial vehicles

Rajasthan Neemrana Hero MotoCorp Two wheelers

Rajasthan Tapukara ^ Honda Two wheelers

Rajasthan Jaipur Mahindra & Mahindra Farm Tractors

India Yamaha Motor Private Uttar Pradesh Surajpur ^ Two wheelers Limited

Uttar Pradesh Greater Noida *• Honda Siel Cars India Passenger vehicles

TTOT • Uttar Pradesh Greater Noida'—^ New Holland Agriculture / CHN TACTORS

Uttar Pradesh Lucknow'-' Tata Motors Commercial vehicles

200 List of automobile plants in India

State Location Manufacturer Class

Uttarakhand Haridwar ^ Hero Honda Two wheelers

Uttarakhand Pantnapar^ Baiai Auto Two wheelers

Uttarakhand Pantnaear''*^ Ashok Levland Commercial vehicles

Uttarakhand Pantnapar^'^ Tata Motors Commercial vehicles

Uttarakhand Haridwar Mahindra & Mahindra Commercial vehicles

Kamataka Mysore^ TVS Motor Two wheelers

Kamataka Narasapura Honda Motorcycles Two wheelers

Mahindra REVA Electric Kamataka Bangalore^ Passenger vehicles Vehicles

Toyota Kirloskar Motor Priyate Kamataka Bidadi^ Passenger vehicles Limited

Toyota Kirloskar Motor Priyate Kamataka Banealore ^ Passenger vehicles Limited

Scania Commercial Vehicles Kamataka Banealore^ Commercial vehicles India Private Limited

Kamataka Doddaballapur^ TAPE Tractors Commercial vehicles

Kamataka Dharwad^ Tata Motors Commercial vehicles

Volyo Buses India Private Kamataka Hoskote^ Commercial vehicles Limited

Tamil Nadu Hosur^^J TVS Motor Two wheelers [

Tamil Nadu Chennai^ Two wheelers

Tamil Nadu Chennai Yamaha Two wheelers

Manufactures tmcks Tamil Nadu Chennai Daimler and buses

201 List of automobile plants in India

State Location Manufacturer Class

Tamil Nadu Chermai BMW India Passenger vehicles

Maraimalai Naear Tamil Nadu [251 Private Limited Passenger vehicles

Tamil Nadu Sriperumbudur ^^ Hyundai Motor India Limited Passenger vehicles

Tamil Nadu Tiruvallur^ Mitsubishi Passenger vehicles

Tamil Nadu Oraeadam^ Renault India Private Limited Passenger vehicles

Nissan Motor India Private Tamil Nadu Oraeadam^ Passenger vehicles Limited

Tamil Nadu Ennore^ Ashok Levland Commercial vehicles

Tamil Nadu Hosur^ Ashok Levland Commercial vehicles

Tamil Nadu Oraeadam BharatBenz Commercial vehicles

Tamil Nadu Hosur^^^J Kamaz Vectra Motors Limited Commercial vehicles

Tamil Nadu Chennai ^ TAPE Tractors Commercial vehicles

Tamil Nadu Kalladipatti^ TAPE Tractors Commercial vehicles

Tamil Nadu Hosur^"' TVS Motor Commercial vehicles

1 Tamil Nadu ThiruvalW^^J Caterpillar India Pvt. Ltd. Commercial vehicles

Tamil Nadu Thiruvallur Hindustan Motors Passenger vehicles

West Bengal Hindmotor^ Hindustan Motors Passenger/Commerc ial

General Motors India Private Gujarat Halol^ Passenger vehicles Limited

Gujarat Sanand^*^' Tata Motors Passenger vehicles

Gujarat Bhui^^^J Motor Works AMW Commercial vehicles

202 List of automobile plants in India

State Location Manufacturer Class

Gujarat Sanand ford motors Passenger vehicles

Maharashtra Baramati (Pune) Piaesio & C. SpA Two wheelers

Pune, Ahmednaear Maharashtra Kinetic Engineering Limited Two wheelers

Taleeaon Dabhade India Private Maharashta Passenger vehicles OH Limited

Taleeaon Dabhade Agriculture Maharashta CASE NEW HOLLAND INDIA I35J Equipment,combines

Maharashta Ranjangaon ^^ Tata Motors Passenger vehicles

Maharashta Punel^ India Automobiles Limited Passenger vehicles

Maharashtra Nashik™ Mahindra & Mahindra Passenger vehicles

Maharashtra Chakan(Pune)^ Mercedes-Benz India Passenger vehicles

Pimpri-Chinchwad Maharashtra Automobiles Limited Passenger vehicles fPune)^

Pimpri-Chinchwad Maharashtra Jaguar & ^^ Passenger vehicles fPune)^

Maharashtra Aurangabad ^^ Passenger vehicles

Maharashtra Aurangabad ^^ Skoda Auto India Private Limited Passenger vehicles

Maharashtra Chakan (Pune) ^ Volkswagen India Private Limited Passenger vehicles

Maharashtra Bhandara^'^J Ashok Levland Commercial vehicles

Passenger vehicles, Maharashtra Kandivali, Mumbai Mahindra & Mahindra Farm Tractors

Pimpri-Chinchwad Maharashtra Baiai Auto Commercial vehicles rPune)^

203 List of automobile plants in India

State Location Manufacturer Class

Maharashtra Chakan (Pune) ^ Commercial vehicles

Maharashtra Chakan (Pune) ^ Mahindra Navistar Commercial vehicles

Maharashtra Chakan (Pune) ^ Force Motors Commercial vehicles

Pimpri Chinchwad Maharashtra Premier Automobiles Limited Commercial vehicles (Pune)^

Maharashtra Naepur Mahindra & Mahindra Farm Tractors

MUVs: Multi utility vehicles;

MPVs: Multipurpose vehicles;

LCV: Light commercial vehicles;

M & HCVs: Medium and heavy commercial vehicles

AEMC- Agricultural Equipment Manufacturing companmies

204 Annexure E: Main Automobile Industries in Pune

Company Name Address Email

Akurdi, MIDC Pimpri, Ltd http://www.baiaiauto.com Pune.

MIDC Pimpri, Block No. Telco Ltd http://www.tata.com/ Fl, Pune.

D-1 Block, Plot No. 18/2 Kinetic Motor Conqjany M.I.D.C, Chinchwad Limited PUNE 411019

15-A,Bhale Estate, Rear Wing (3rd Floor) Hero Honda Motors Wakadewadi, Limited Pune-Mumbai Road Pune-411 003

Akurdi, MIDC Pimpri, Bajaj Tempo Ltd. http://www.tempoindia.com Pune.

Sector 15 A,Chikhali, Mercedes Benz India Ltd www. mercedes-benz.co. in Pimpri MIDC, Pune

MIDC's Industrial Park - Fiat India Ltd. http://www.fiat-india.com/ Ranjangaon( Pune)

Bharat Forge Ltd. Mundhwa, Pune. http://www.bharatforge.com/

Kirloskar Group Pune. http://www.kirloskar.com/

Apollo Tyres Ltd. Ranjangaon (Pune) http://www.apollotvres.com/

205 D - 1 Block, Plot No. 18/1, Jaya Hind Industries Ltd. http://www.iavahindsciakv.com Chinchwad, Pune.

Spaco Carburetors (I) MIDC Bhosri, Pune. Ltd.

Plot No. B-6, MIDC Chakan Minda Industries Ltd. http://www.mindaweb.com/ Industrial Area, Pune

Tata Auto Comp Systems Pune. http://www.tacogroup.com/ Ltd.

Tata Yazaki Autoconp Kesnand, Wagholi-Rahu http://www.tacogroup.com/ Systems Limited Road, Pune

206 Annexure F: Profile of some major automobile industries in India

• Tata Motors Limited

Tata Motors Limited is India's largest automobile conpany.It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors saw strong growth in certain key segments, as passenger cars (excluding UV's), M&HCV and Exports grew by 33%, 20% and 5%, respectively, year-on-year; with the total commercial and passenger vehicles sales (including exports) in March 2015 of 52,479 vehicles, a growth of 3% over 51,184 vehicles sold in March 2014. The company's domestic sales of Tata commercial and passenger vehicles for March 2015 were 47,044 nos., a growth of 2% over 45,996 vehicles, sold in March 2014. Cumulative sales (including exports) for the company for FY 14-15 were 502,281 nos., lower by 11% over 566,695 vehicles, sold last year in FY 13-14. In March 2015, Tata Motors passenger vehicles recorded sales of 15,039 nos., a growth of 19%, compared to 12,640 nos., sold in March 2014. Tata Motors has winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer with over 24,000 employees. Since first rolled out in the year 1954, Tata Motors as has produced and sold over 4 million vehicles in India. Tata Motors is the first company from India's automobile sector which is listed in the New York Stock Exchange in September 2004. Through subsidiaries and associate companies, Tata Motors has operations in the United Kingdom, , and Spain. Among them is , a business comprising the two British which was acquired in the year 2008. In the year 2004, it acquired the Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new

207 products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In the year 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in the year 2009. In the year 2006, Tata Motors formed a joint venture with the -based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets and entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in the year 2008. Tata Motors is also expanding its international footprint by franchises and joint ventures assembly operations in Kenya, Bangladesh, , Russia, Senegal and South . With over 3,000 engineers and scientists, the company's Engineering Research Centre, established in the year 1966, has enabled ground-breaking technologies and products. The company today has R&D centres in Pime, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. Tata Motors was the first company, which indigenously developed , India's first Sports Utility Vehicle and, in the year 1998, the , India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In the year 2005, Tata Motors created a new segment by launching the , India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the , a development which signifies a first for the global automobile industry. The standard version has been priced at USD 2,200 or Rs. 100,000 (excluding VAT and transportation cost). In the year 2009, the firm marked its name in the pages of automobile industry by producing the world's fuel efficient and cheaper Car- Tata Nano. • Maruti Suzuki India Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car 208 market. The conpany offers a complete range of cars from entry level Maruti-800 and Alto, to stylish hatchback Ritz, A , Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. Since inception in the year 1983, Maruti Suzuki India has produced and sold over its 10 millionth vehicle in February 2012 in India and exported over 500,000 units to and other countries. Automobile manufacturer Maruti Suzuki reported an increase of 11.9% in its total sales for 2014-15, which stood at 1,292,415 units from 1,155,041 units sold in the previous fiscal. According to the company, domestic sales during the year ended March 31, 2015, grew at 11.1% at 1,170,702 units from 1,053,689 units in 2013- 14. Exports during the period under review zoomed by 20.1% at 121,713 units from 101,352 units shipped out in 2013-14. The Trust Report published by Trust Research Advisory, a brand analytics company, has ranked Maruti Suzuki in the thirty seventh position in 2013 and eleventh position in 2014 among the most trusted brands of India. Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car Company in their Reputation Benchmark Study conducted for the Auto (Cars) Sector which launched in April 2012.

• Hyundai Motor India Hyundai Motor India Limited is a wholly owned subsidiary of world's fifth largest automobile company, , South Korea, and is the second largest passenger car exporter. Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes the Santro in the B segment, the ilO, the premium hatchback 120 in the B+ segment, the Accent and the Vema in the C segment, the Sonata Transform in the E segment. HMIL's manufacturing plant near Chermai has the most advanced production, quality and testing capabilities in the country. HMIL is the first automobile company in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 120 countries across EU, Africa, Middle East, Latin America, Asia and

209 Australia. It has been the number one exporter of passenger cars of the country for the eighth year in a row. To support its growth and expansion plans, HMIL currently has 388 strong dealer network and more than 1000 strong service points across India. HMIL registered 4.6% growth in Exports in the month of May 2013. The domestic sales accounted for 32,102 units and exports stood at 24,754 units. In a little over a decade since Hyundai has been present in India, it has become the leading exporter of passenger cars with a market share of 66% of the total exports of passenger cars from India, making it a significant contributor to the Indian automobile industry.

• Mercedes Benz Daimler AG has been active in the commercial vehicle business in India for decades. Back in the year 1954, the first Indian truck was a Mercedes-Benz, after Daimler-Benz granted a license for automobile production to India-based . A year prior, Daimler-Benz acquired an equity interest in Tata. In the year 1970, Daimler-Benz and Tata entered into a licensing agreement, providing a framework for fiirther activities. In addition, Daimler has licensed various products to other Indian manufacturers (e.g. Force Traveller). In the year 2007, Daimler introduced its heavy-duty truck Mercedes-Benz Actros in the Indian market. This vehicle is mainly used in the mining business. In order to produce light, medium, and heavy-duty trucks for the Indian market, Daimler Trucks entered a joint venture with the Indian automobile group Hero. After receiving official approval from the Indian government in March 2008, Daimler Hero Motor Corporation Ltd. was established. The economic situation from late 2008 to mid-2009 necessitated re-positioning of Daimler Trucks' partnership with the Hero Group in India. As a result, Daimler AG and Hero Group announced on April 15, 2009 the dissolution of Daimler Hero Commercial Vehicles Ltd. in India. Afterwards, Daimler created a new Indian subsidiary without Hero Group's involvement, named Daimler India Commercial Vehicles Pvt. Ltd. In the year 1994, Daimler entered the Indian market and set up Mercedes-Benz India with its headquarters in Pune. Mercedes-Benz India is also a 100%-owned subsidiary of 210 Daimler AG and is responsible for the manufacture of Mercedes-Benz passenger car, besides assembly of Mercedes-Benz bus chassis along with the sales and service network. In Banglore, Daimler has set up its largest research and development location outside of Germany, the Mercedes-Benz Research & Development India Pvt. Ltd. In addition to conducting simulations of mechanical structures, the center develops software and uses CAE and CAD tools to design vehicle components. Daimler India Commercial Vehicles Pvt. Ltd. (DICV) is a 100% subsidiary of Daimler AG, Germany. Its aim is to design, manufacture and sell light, medium and heavy-duty commercial vehicles that cater to the demand of Indian terrain and customers. These vehicles are known by the brand name "BharatBenz". The new models E-Class and CLA introduced in the year 2013 are very well received by customers. The S-Class is the best-selling luxury sedan of the world also in the year of its model change-over. Mercedes-Benz India recorded the highest volume of sales in its history in the country by selling 10,201 units in 2014. With this, the brand with the Three Pointed Star also recorded 13% growth over the corresponding period in 2013 (January-December 2013: 9,003 units). This is the second consecutive year that Mercedes-Benz has posted a double digit growth in India.

• Volkswagen (VW) Headquartered in Pune, Maharashtra, the Volkswagen Group in India is represented by five brands: SKODA, Volkswagen, Audi, Porsche and . The Indian journey began with the launch of SKODA in the year 2001. Audi and Volkswagen entered in 2007, while Lamborghini and Porsche were introduced in the year 2012. Today, the Group upholds its mantle of superior engineering, with plants in Pune and Aurangabad working seamlessly to manufacture the world's most loved cars. The Volkswagen Group India is a part of Volkswagen AG, which is globally represented by 12 brands from 7 European countries. 11 automotive brands: Volkswagen Passenger Cars, Audi, Bentley, Bugatti, Lamborghini, Porsche, Scania, SEAT, SKODA, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) and MAN; and 1

211 motorcycle brand: Ducati. An impressive line-up that prides itself as much in its quality of engineering, as in its depth of innovation. From low-consumption small cars to luxury class vehicles, each car is credibly worthy of its place on the road. Even in the commercial vehicle sector - where products range from pick-ups to buses and heavy trucks - the Group's cars successfially partner businesses and are known to far exceed the industry standard. This benchmark, that is truly gold standard, has helmed the group in its operations across 100 production plants around the world. More than 500,000 employees are involved in vehicle-manufacturing services and their related processes. Together, they produce about 30,000 vehicles each working day. The highest volume brand of the Group is Volkswagen. Europe's most successful car brand has made popular inroads into the Indian market. Volkswagen presents itself in a variety of segments as a premium manufacturer of high-volume models. As a first step, the Volkswagen brand launched the globally successful Passat in the year 2007. To expand its portfolio and cater to the mid-segment, Volkswagen launched one of the brand's best-selling models, the Jetta, in India in July 2008. Both, Passat and Jetta are assembled locally. The year 2009 was an iconic year when Volkswagen brought in two of its globally popular vehicles into India - the New Beetle and the high-end SUV Touareg. The following year saw the launch of the much-awaited Volkswagen Polo and Vento, as well as the introduction of the high-end car Phaeton. Volkswagen also introduced the all-new Passat, developed with its innovatively engineered BlueMotion Technologies in March 2011. This was followed by the all-new Jetta TDI for India in August 2011. Year 2011 was a landmark year for another reason too - the launch of the Jetta TSI. In the year 2012, the new generation Touareg was introduced in India.

The Polo GT TSI was the happening new launch of year 2013. Launched with an industry-first 7-speed DSG (Direct Shift Gearbox) transmission, the hatch promised the customer maximum power, coupled with minimum consumption. Its TSI engine, with a fuel consumption of 17.2 km/1, brought to the fore an environment-friendly and efficient drive that gave out lesser emissions. In the same year, the TSI engine went on to make history by winning the 'International Engine of the Year' award for the 8th time in a row. 212 At the backbone of all cars (and the many more exciting entrants in the pipeline) is Volkswagen's extensive dealer network. A workforce determined to provide the best quaUty services, scripting a long-term success story for the brand in India. The Volkswagen brand has set up 122 dealerships in 113 cities today spanning the entire country. They are not only laying the foundation for a substantial increase in sales, but also doing the groundwork for offering a first-class all-round service, taking customer satisfaction to the highest level. A crucial element of the Volkswagen Group strategy to establish a long-term presence in India is the Volkswagen plant in Chakan, Pune. The investment with a total sum of around INR 3,800 Crores (580 Million Euros) is the biggest investment by a German company realised in India so far. The plant, one of the most modem in the Volkswagen Group worldwide, has a high level of vertical integration. Today, Volkswagen Group India has about 5,000 employees working at its various locations in India. Over 3,500 employees work at the Pune plant with about 1,000 employees dedicated to the Aurangabad plant and around 300 people employed at the National Group Sales Office in Mumbai. Volkswagen ranks first in spending the most money of any automaker on research and development as of year 2011. With the closure of the 2014-15 fiscal year, it is revealed that for most automobile industries the verdict and sales is positive . passenger car sales are shifting to the growth lane, two-wheelers are already there and commercial vehicle numbers are showing promise of a better tomorrow. Short profile of Volkswagen Pune Plant. The Volkswagen plant in Chakan occupies a total area of over 2.3 million square metres (575 acres), with buildings covering about 1,15,000 square metres.

213 A workforce of over 3,500 people was engaged in building it during its peak construction stages. The plant was built in a record time of 17 months, with an investment commitment of INR 3,800 Crores (580 million Euros) by Volkswagen India Private Limited. It is the largest investment by a German company to date in the growing Indian market. Production

The plant has a production capacity of 130,000 vehicles a year, which in capacity was maximised in 2011. The construction of the plant commenced in 2007. The Honourable Governor of Maharashtra, His Excellency Shri. S. C. Jamir and Prof Dr. Jochem Heizmann, officially inaugurated the new plant on March 31, 2009, in the presence of nearly 500 international guests.

214 The Pune plant is one of the most modem in the Volkswagen Group. It has a high level of vertical integration and a large share of local suppliers. The facility is the only production plant operated by a German automaker in India that covers the entire production process, from press shop through body shop and paint shop to fmal assembly. The facility uses futuristically designed state-of-the-art equipment. For example, the body shop uses the Diode Laser Brazing (DLB) technology, whereas the Roof & Side Framer laser technology is used for welding the roof to the body of the car. The facility is also one of the few environment-friendly manufacturing plants around the area. For instance, the exhaust of the paint shop is re-burnt and the resultant heat and energy is reused.

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