auto component industry in india: growing capabilities & strengths
TRANSCRIPT
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
13
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
23
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
24
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
36
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 : [email protected]
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: [email protected] 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: [email protected]
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: [email protected], Website: www.acma.in
for any assistance contact
46
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