auto component industry in india: growing capabilities & strengths

Auto Component Industry in India: Growing Capabilities & Strengths

• India: A Growing Economy

• Automotive Industry in India

• Auto Component Industry in India

• ACMA

• Korea In India

• Capabilities & Challenges

• The Way Forward

• Delegation Details

Agenda

2

India: A Growing Economy

3

1. Largest Democracy – 1.2 billion people, Growing Middle Class

2. 2. 4th largest GDP (PPP) and 10th largest GDP (Nominal, USD 1.8

trillion)

3. One of the fastest growing economies - Estimates for 2012-13: ~6%

• India’s average GDP growth rate: 8.4% over past 5 years

• Expected to outpace China in the next decade .

4. 3rd Largest Investor base in the World

5. Robust Legal and Banking Infrastructure

6. Demographics Advantage – Youth driven economy

India: A Vibrant Economy

4

Automotive Industry in India

5

Rapidly growing presence of Global OEMs - Passenger Car

2007 2012

Japan53%

Europe5%US

7%

Local9%

Korea26%

(Illustrative List) 6

Passenger Vehicles Production

7

(’000 units)

Figures for financial year – April to March

(* Estimates)

1,838 2,357

2,987 3,146 3,234

5,100

10,000

-

2,000

4,000

6,000

8,000

10,000

2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21

CAGR 2009-13: 15%

CAGR 2013-21: 13%*

*

*

Other Vehicles Production

Figures for financial year – April to March (* Estimates)8

Two & Three Wheelers

Commercial Vehicles include:• Small Commercial Vehicles (SCV) < 1 ton• Light Commercial Vehicles (LCV) > 1 ton but < 7.5 tons

• Medium Commercial Vehicles (MCV) > 7.5 tons but <16 tons• Heavy Commercial Vehicles (HCV) > 16 tons

40 48 54

100

180

0

200

2009-10 2010-11 2011-12 2015-16 2020-21

Construction Vehicles

CAGR 2011-21: 14%*

8,91711,132

14,17616,330 16,561

20,974

30,231

0

4000

8000

12000

16000

20000

24000

28000

32000

2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21

417568

753929 832

1,420

2,350

0

300

600

900

1200

1500

1800

2100

2400

2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21

CAGR 2008-13: 19% CAGR 2013-21: 14%*

*

*

*

*

420545

640 641710

1,000

0

300

600

900

1200

1500

2009-10 2010-11 2011-12 2012-13 2015-16 2020-21

CAGR 2009-13: 15% CAGR 2013-21: 6%*

CAGR 2009-13: 17% CAGR 2013-21: 8%*

*

*

*

*

Commercial Vehicles Tractors( ’000 units)

Auto Component Industry in India

9

Auto Component Industry Profile - Turnover

Comprehensive Product Range

10

US

D b

illio

n

26.5 2330.1

39.9 42.4 40.6

66

115

0

30

60

90

120

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21

(* Estimates)

*

*

CAGR 2008-12: 12%

CAGR 2013-21: 14%*

Figures for financial year – April to March

*

Auto Component Industry Profile - ExportsU

SD

bill

ion

Export Destinations

OEM/Tier 1 account for 80%; Aftermarket for 20%

3.8 4 3.4 5.28.5 9.3

12

30

-5

5

15

25

35

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21

(* Estimates)

*

*

11

CAGR 2008-12: 22%

CAGR 2013-21: 16%*

Figures for financial year – April to March

*

12

ACMA: Strengthening linkages with Indian Automotive Industry

About ACMA

• Established in 1959

• Apex body of Auto Component Industry in India

• 675+ members from the Organized sector

• Represents 85% of the Industry by turnover

• Represented on all Government and Industry bodies –

Strategic to the Auto Sector

• Offices across all Regions in the Country

• An ISO 9001-2008 Institution

ACMA – Excellence in Service Delivery

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ACMA Services

14

• Promotes Indian Automotive Component Industry

• Trade Promotion

• Technology Up-gradation

• Quality Enhancement

• Collection &Dissemination of Information

• Vital Catalyst for Industrial Development

Auto Component Industry Profile - Imports

Sources of Imports(* Estimates)

6.2 6.8 6.5 8.513.2 13.1

19

35

0

10

20

30

40

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21

US

D b

illio

n

*

*

16

CAGR 2008-12: 11%

CAGR 2013-21: 13%*

Figures for financial year – April to March

*

Asia; 59%

Europe ; 32%

North America; 8%

South America; 1%

33.954

858.5

12

30

13.2

19

35

0

50

100

150

2011-12* 2015-16 (E) 2020-21 (E)

Production for domestic consumption Exports Imports

17Total Industry Potential: USD 150 billion by 2020

Vision 2020: Indian Auto Component Industry

85

150

US

D B

illi

on

56

E-Estimated

*New Methodology followed from 2011-12 onwards

Source: ACMA - EY Vision 2020

Korea In India

18

Major Korean Tier1 players presence in India

More than 50 JV…

An Illustrative list:

• Daerim Enterprise Co. Ltd.• Donga Manufacturing Corp.• Dymos Inc.• Hwashin Co. Ltd.• Iljin Corporation• Infac Corporation• Jin Young Industries• KCW Corporation• Komos Co. Ltd.• Kwang Jin Sang Gong Co. Ltd.• Kyungshin Industrial Co. Ltd.

• L S Mtron• Mando Corporation• Mobis• Myung Hwa Ind Co. Ltd.• NVH Korea• Oto Co. Ltd.• Pyeong Hwa Automotive

Co.• Sung Woo Hitech Co. Ltd.• SL Corporation• Yongsan Co.

20

India-Korea Auto Component TradeU

SD

Mil

lio

n

• Growth of Imports from Korea: 3% ( 2012/ 2011)

• Growth of Exports to Korea: 1% (2012/ 2011)

Biggest Korean Success Story in India

21

•Making Vehicles for India

•Vehicle for worldwide export •2nd biggest car Manufacturer in India

22

Capabilities & Challenges of Indian Component Suppliers

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Advantage India

Product Development Capabilities

Availability of skilled manpowerEnglish Speaking

Source: CRIS INFAC; BMI; IBEF

High Quality Standards

Export incentives and favorable currency

Conversant with Global Automotive Standards

Respect for Intellectual PropertyDemocratic Judicial System

Growing IT capabilities

Strong Entrepreneurship

Flexibility in Small Batch production

…..Key drivers enabling capability and growth of Indian component suppliers

India is fast becoming a favored investment destination for its…..

Indian Auto Component

Industry

Large and growing Domestic demand

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Increasing focus on Innovation and Research

• AMD

• Boeing

• Bosch

• Caterpillar

• Continental

• Cummins

• Ford

• GM

• GE

• Honda

• Honeywell

• Hyundai

• Intel

• Magna

• Motorola

• Mercedes Benz

• Microsoft

• Renault Nissan

• Suzuki

• Valeo

Design & Research Centers of leading Global companies in India

(Illustrative List)25

Challenges – Typical of a high Growth Emerging Market

Raising Capital & Scaling Capacities

Infrastructure Challenges

Roads

Ports

Power

Inflation

Timely Government decisions

R&D Competence

26

Advantage Jamshedpur

•Huge Opportunities

•Developing Indian Suppliers as supply base

•Low cost manufacturing model

•Frugal Engineering

27

28

Fully Developed Industrial City: The House of Tata Group

Availability of Ferrous Raw Material

29

World Class Power Availability: JUSCO POWER by TATA

30

Road Infrastructure

31

Successful Joint Ventures & Technology Transfers in Jamshedpur

• Hitachi

• Cummins

• Klein

• Kyocera

• Cikautxo Coop

• Nippon Steel

• Metaldyne

32

The Way Forward

33

Potential areas of Cooperation

• South Korean SMEs to invest in green-field manufacturing in India

• Partnerships with Indian SMEs - Product and Process Technology.

• Supply Base discovery in India.

• Strategic Alliance to supply to Global customers.

• Joint R&D with Indian companies for new product development, designing and Testing.

• JV opportunities to supply to India based OEMs.

Opportunities for

Win-Win Scenario

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1. Low Cost Manufacturing 1. Technology Availability

2. Skilled Man Power 2. Product and Process R&D

3. Frugal Engineering3. Access to Global/ Korean OEMs

4. Growing markets

Delegation Profile

Jamshedpur Auto component Industry

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SAMARTH ENGINEERING CO. PVT. LTD. Adityapur - Kandra Road. Adityapur, JAMSHEDPUR 832109 INDIAContact No. +91 657 6622666Web site : www.samarth.biz

FACTS

• Established in 1976• Company is part of Jamshedpur ( Eastern India ) based “KAMANI GROUP”,

which has for four  Generations served automotive Industry. • We are an ISO / TS - 16949:2009 Certified Company by "CERMET”• We manufacture Pressed, Fabricated Components, Skin Panels and • Assemblies for Chassis & Body Assemblies for Heavy Commercial Vehicles.• Our Valued Customers (OEM): TATA MOTORS LTD., TML DRIVELINES LTD.

                   (Tier 1 ): RSB Global Ltd., BRAKES India Ltd., Auto Profiles Ltd.• We are one of the Preferred Suppliers of Sheet Metal Components, Skin Panels and Assemblies to

TATA MOTORS LTD., at Jamshedpur & Lucknow because of our Quality and On Time Delivery to

adhere to their 100% Schedule.• We are practicing / maintaining , on regular basis, the learnings from various Cluster Programs that we

have completed, such as - Visual Factory, 5S, Safety, KAIZENS, POKA YOKE, Continual Improvement

Processes with support of Total Employee Involvement.• QUALITY POLICY : We are committed to achieve absolute Customer satisfaction by exceeding Customer

expectation in Quality, Cost, On Time delivery, Technology and Attitude by addressing their concerns

through Continual Improvement to increase customer Trust & Confidence in • " SAMARTH ENGINEERING ”.

37

Mr. Killol KamaniManaging Director

Mission Leader

FACTS

• Established in 1992

• Part of Sabind group. Other companies including a Ferrous

foundry & Investment company.

• Joint Venture with Metaldyne, US since 2000.

• TS 16949:2009 certified.

• ISO 14001 certified

• Export more than 5.0 mln, auto components for OEM application since 2000.

• Customer base in North America, South America, Europe, Japan, Thailand & India.

• Customers : International: Cummins, Nissan, Volvo, Ford, Metaldyne.

• Domestic : Tata , AMW.

• Supplier for precision machined auto components, Flywheel Assemblies,

• Vibration Dampers, Axle components, Pulleys, Ferrous castings.

• Group Sales USD 50mln.

• Operational focus on 5S, Safety Lean manufacturing, Poka yoke & Kaizen.

Dy. Mission LeaderSanjay SabherwalManaging Director

METALDYNE INDUSTRIES LIMITED.                                 21-A, Phase VI, Industrial Area Gamharia, Jamshedpur - 832108 INDIA                                             Contact No. +91-657-654391Web site :www.metaldyne.com e-mail : sanjay.sabherwal@metaldyne-india.com

Emdet Jamshedpur Pvt. Ltd.B-7& 8, Industrial Estate, Adityapur, Jamshedpur 832 109, Jharkhand Website: www.emdetjsr.com

FACTS

Year of Commencing Production: 1978

Products Manufactured: Emdet Jamshedpur, is renowned company

offering multi-appliction automotive rubber products like Silicone Hose,

Radiator Hoses, Flexible Rubber Hoses,Molded Radiator Hoses, Moulded

Rubber Parts, Engine Mountings, Metal to Rubber Parts, Flexible Fuel tubes etc. for automobile industries.

Number of Employees: 210

Quality Systems Standard: ISO/TS 16949:2009, by CERMET, Italy

Sales Turnover (2011-12 in US $ Mln): 8.62

Principal Customer:-

Domestic (OEM): Tata Motors Ltd.(Jamshedpur, Pune, Lucknow), Ashok Leyland Ltd.(Chennai), Volvo India Ltd.(Pithampur, Indore), Tata Commins.(Jamshedpur)

Domestic (Tier I): Banco Products India Ltd.(Jamshedpur & Vadodara Units), RSB Transmission Ltd.(Jamshedpur), Tata Toyo Radiators Ltd.(Jamshedpur & Lucknow Units), Alkraft Thermotechnologies Pvt. Ltd.

 Joint Venture with Neff Perkins, USA & are supplying rubber GASKETS

38

Mr. Ranjot SinghManaging Director

Highco Engineers (P) Ltd.B-23 & 25, 1st Phase Industrial Area Adityapur, Jamshedpur 832 109, JharkhandWebsite: www.highco.co.in

FACTS

• Established in the year 1979• Manufactures sheet metal stampings and fabricated assemblies

for the leading automotive OEMs’ and Earth Moving Machinery

manufacturers in the country.• Associated for the past 35 years with Tata Motors.• Highco group is also into Construction Industry (Building Facades) through

its sister concern ‘Kharkai Building Systems Private Limited’ • Sheet Metal Auto Components Manufacturer• Established in the Year 1979 • Annual Group Turnover of ( USD 18.44 million )• Suppliers to OEM’s like • Tata Motors Limited ( Jsr-Lkw-Pune)• Tata Marcopolo ( Dharwad )• Wabco TVS India Ltd. (Sundaram Clayton)• Tata Hita ( Jsr-Dharwad-Khagadpur)• RSB Group ( International Auto ltd ).• Tata Johnson Control

40

Mr. Sanjay Kumar Singh

Managing Director

Multitech Auto Pvt. Ltd.A-5, Near Industrial Estate, Adityapur,Jamshedpur 832 109, JharkhandWebsite : www.malauto.com

FACTS

Managing Director: Mr. Atul Dua

Chief Executive: Mr. Surendra Gadia, COO

Sales-in-charge: Mr. Suvro Joti Paul

Export-in-charge: Mr. Bikramjeet Bhardwaj

Production-in-charge: Mr. Dinesh Kumar Sinha

Year of Commencing Production: 1996

 Products Manufactured: Machining Hardened and Ground Components

Number of Employees: 118

Trade Marks: MAL

Quality Systems Standard: ISO/TS 16949 by BSI

Sales Turnover (2011-12 in US $ Mln): 7.43

Principal Customer:-

Domestic (OEM): Tata Motors Ltd., WABCO, Tata Cummins., Telcon., TRF., AMW.

Domestic (Tier I): York Transport Equipments Ltd.

41

Atul DuaManaging Director

ASL Industries Pvt LtdC-54, 55, 56, IVth Phase, Adityapur industrial Area, Gamharia, Jamshedpur – 832108, Jharkhand.Phone: +91-657-3099888, 6571890 Email: aslijsr@yahoo.co.inVisit us at: www.aslgroup.in

FACTS

Products Manufactured: Sheet metal pressed components including cross

and long members, Forged and machined components, and their assemblies

for commercial vehicles, utility vehicles and Agricultural Tractors.

No of employees: 345 

Quality Policy: Our constant endeavor is to manufacture products of pre-eminent quality that confirm to the customer’s need consistently by strict conformance to specification, competitive cost, on time delivery and to strive for excellence through the implementation of the Quality Management Systems, fulfilling Quality Objectives and continual improvement in our systems and technology.

Quality certification: ISO/EMS 14001, ISO/TS 16949 and ISO/OSHAS 18001

Sales Turnover (US $ Mn for Year 2012-13): 8.24

Principal Automotive Customers

Domestic: Tata Motors, York India Pvt Ltd, JOST

42

Mr. Dilip GoyalChairman & Managing

Director

FACTS

Manufacturers of SG Iron ( Ductile Iron ) & Cast Iron Castings & Components

Manufacturing Facilities a) 2000 Kg. / 1500 KW Dual Track Induction Furnace b) 1000 Kg. / 750 KW Dual Track Induction Furnace c) 500 Kg. / 450 KW Dual Track Induction Furnace d) ARPA 900 Molding Machine – 1 Pair

ARPA 450 Molding Machine – 2 Pairs e) Full fledged Metallurgical & Metrological Laboratories f) CNC Machine Shop with Turning Centers , VTL & VMC’s g) Installed Capacity: 17,500 MT / annum 

Quality Certification  We are a TS 16949 : 2009 Certified Company and are now going in for ISO 14001 Certification .  Major Customers :

1)      M/S Tata Motors Ltd., & its group industries , Jamshedpur , Pune   &   Lucknow 2) M/S Automotive Axles Ltd. ( A Meritor Group Company )3)    M/S Metaldyne Industries Ltd. , Jamshedpur4)      M/S  York Equipments Ltd., Pune 5) M/S Tata Steel Ltd., Jamshedpur

BMC Metalcast Pvt. Ltd.A-18,19, Phase II, Industrial Area, Adityapur,Jamshedpur 832 109, JharkhandWebsite: www.bmcmetalcast.com

Mr. Deepak DokaniaExecutive Director

Singhbhum Machinometal Pvt. Ltd.B-32, 2nd Phase, Adityapur IndustrialArea, Jamshedpur - 832109, INDIAContact No: +91-657-6552164Email: info@smpljsr.com

FACTS

Year of Commencing Production: 1979

Products Manufactured: Precision machined wheel and axle components for heavy

commercial vehicles like – Hubs, Differential Case and Differential Covers. Pinion Housings

and Brackets. Fabricated sub-assemblies for Commercial Vehicle Engines like – Turning

Tubes, Support Tubes, Pedal Levers, Link Rods and Gear Shifting Levers.

Number of Employees: 91

Quality Certification: ISO/ TS-16949:2009

Sales Turnover (2011-12 in US $ Mln): 3.5

Principal Customer:-

Domestic (OEM): Tata Motors Limited, Tata Motors Drivelines Limited, Tata Motors

Limited (Lucknow), Ramakrishna Forgings Limited, Axles India Limited

44

Mr. O. P. ChopraManaging Director

Conclusion

• Growing Indian Economy

• Automotive Industry - Double Digit Growth in all segments

• India fast emerging as hub for Global Vehicle Programs

• 2020 : USD 113 billion Auto Component Industry

• Growing Engineering and IT capability for Designing & Manufacturing

• Respect for IPR

• Opportunity to Partner in Product & Process Innovation

• Opportunity to Outsource for OEMs/T1s and Aftermarket

India: The Gateway of Growth

45

ACMAThe Capital Court, 6th Floor, Olof Palme Marg, Munirka, New Delhi – 110 067

Tel: 011-26160315, Fax: 011-26160317E-mail: acma@acma.in, Website: www.acma.in

for any assistance contact

46

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