4th partmart & autocare · 4th partmart & autocare ... mr stefan kracht, director, fiducia...

ContentsNational Committees 3ACMA in the Press 19

From the Regions 24Member's Room 33

February - March 2011Vol. 7 No. 29

4th mart & CAREpart AUTO

Automotive Component Manufacturers Association of India

February - March 2011 3

Auto NewsTrade Fairs Committee

The Automotive Aftermarket and Services ExpositionNew Delhi : February 10-12, 2011

The fourth edition of “partmart & AUTOCARE” - The automotive aftermarket and services exposition was organised by Automotive Component Manufacturers Association of India (ACMA) and Confederation of Indian Industry (CII). The event planned to coincide with 19th International Engineering & Technology Fair (IETF-2011) which had Japan as the Partner Country and UAE as the Focus Country. The show was actively supported by Society of Indian Automobile Manufacturers (SIAM), Federation of Automobile Dealers Associations (FADA) and Federation of All India Automobile Spare parts Dealers Association (FAIASPDA).

The show saw 35 companies from India and overseas participation, major companies being Anand Group, Shriram Pistons, Talbros, TVS Group (Lucas, Delphi, India Japan), Imperial Auto Industries, Minda Group, Rane Group, Knorr-Bremse Systems, Delphi Automotive Systems, Brakes India, etc.

The show was inaugurated by Shri B.S. Meena, Secretary, Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises, Government of India. Coinciding with partmart & AUTOCARE following events were organised by ACMA:-

1. Theme pavilion popularly known as Asli-Naqli. With its growing popularity, the Asli-Naqli pavilion - an anti-counterfeiting campaign was organised to educate and create awareness on the menace of counterfeiting where ACMA members displayed their genuine

NATIONAL COMMITTEESproducts and the corresponding fakes. partmart and AUTOCARE, an autoparts specific show, offers huge scope for parts sold in the aftermarket. ACMA finds it important to continue awareness against counterfeits and thus organised an Asli-Naqli Quiz Contest which felicitated winning contestants who successfully identified visible dissimilarities of real parts from the fakes displayed at the Asli-Naqli stand.

2. ACMA-JETRO “Japanese Procurement Exhibition”: ACMA along with JETRO organized “Japanese Procurement Exhibition”, wherein 17 Japanese companies participated and showcased the products that they would like to procure from Indian Suppliers.

3. In order to understand the dynamics of the automotive industry in China, ACMA organised a National Conference on Engaging with China: “Opportunities & Challenges”. The Conference aimed at understanding China as an opportunity rather than a threat for the Indian auto component manufacturing industry and how we could engage with them. The Conference focused on Engaging with China : An Insight; In-depth Analysis of the Chinese Automotive Industry; Strategies for successful operations in China : do's & don’ts; Exports to China : A Breakthrough; How German Companies managed entry into Chinese operation; M & A: Primer for China.

4. Launch of Automotive Aftermarket Study book: ACMA released the Indian Automotive Aftermarket Study Book which describes the potential of aftermarket in the domestic front. The aftermarket study book is a comprehensive research on the Indian automotive aftermarket that unravels every aspect of aftermarket; for the first time vehicle parc data is included, both make-wise and model-wise, collected from over 50 RTOs across the country. The book also gives information on the aftermarket size and its business potential, replacement frequency of key parts, profile of the service industry, emerging trends, data on IPRs, spurious parts and the existing government regulations.

5. White Paper on Legislative Improvements to Combat Counterfeiting: ACMA also released an approach paper on


Auto NewsLegislative improvements to combat counterfeit auto components. The White Paper aimed to suggest the much needed legal reforms to combat spurious automotive components in an attempt to make counterfeiting a non bail-able offence in the larger public interest.

The fair was visited by Vehicle Manufacturing companies and a mix of Dealers, Distributors, Exporters and Importers visited the stands. There were overseas delegations from Turkey, Iran and Japan.

National Conference on Engaging with China : Opportunities & ChallengesNew Delhi: February 11, 2011

China has rapidly emerged as the second largest trading partner of India. The auto components export from India to China is USD 66.5 million which is 2% of total Auto component export from India. Whereas, the auto components import from China to India is USD 693 million which is 12% of total Auto component import to India.

In order to understand the dynamics of the automotive industry in China, the Globalisation & India Brand Building Committee of ACMA organised a National Conference on Engaging with China : “Opportunities & Challenges”.

The conference aimed at understanding China as an opportunity for the Indian auto component manufacturing industry and how Indian auto component industry could engage with them.

Mr. Jayant Davar, Past President and Chairman – Globalisation & India Brand Building Committee, ACMA gave a warm welcome to all the speakers and a special welcome to the Chief Guest Shri B S Meena, Secretary – Ministry of Heavy Industries & Public Enterprises.

Speaking at the occasion, Mr. Srivats Ram, President, ACMA & Managing Director, Wheels India Ltd. emphasised the significance of the two large and emerging economies, viz., India and China which are attracting the large-scale investments by the global OEMs into their countries. He further stated that the sheer scale of manufacturing and the “costing” are two important facets which India could learn from China.

Inaugurating the Conference, the Chief Guest – Shri. B. S. Meena complimented the pro-active approach of the component industry by re-visiting the AMP document and coming out with the Vision 2020 document and re-assured the support of the Ministry to the component industry to become a global player.

The elite list of speakers comprised of senior level management from the component manufacturing industry and leading consultants & lawyers, viz., Mr Sridhar Venkiteswaran, Executive Director, Avalon Consulting; Mr Stefan Kracht, Director, Fiducia Management Consultants ; Mr. Praveen K Maheshwari, Executive Director, Bharat Forge Ltd. ; Mr Alan Fung, Partner, KPMG Advisory (China) Ltd.; Ms Barbara Scharrer, Scharrer Legal & Asiagio Consultancy, China ; Mr Euan Rellie, Joint Founder & Sr. Managing Director; Business Development Asia Llc.; Mr Sunil Arora, Chairman – SME Committee & Joint Managing Director, Abilities India Pistons & Rings Ltd.

At the Conference, the Chief Guest – Shri. B S Meena released ACMA’s first-of-its-kind Study book on “Indian Automotive Aftermarket Study – 2011” & a “White Paper on Legislative Improvements to Combat Counterfeit Auto Components”. The Study – a primary research of the Indian automotive aftermarket was conducted by a leading market research agency – the Nielsen Company. The study estimates the replacement frequency for key automotive components across various vehicle segments and average maintenance cost during each servicing cycle and the distribution channel across the country. The study also identifies key trends and potential changes in the automotive business landscape. The first part of the study presents the findings while the latter half provides detailed granular data in the form of tables. ACMA had also published the complete data set collected during the field study in an interactive electronic format as well. On the other hand the “White Paper” delineates the quantum of counterfeiting in the auto components in India, its adverse impact on the economy & trade and remedial measures including strengthening of legislative framework to combat the same.

The Conference touched upon variety of topics and an insight of engaging with China; an in-depth analysis of the Chinese automotive industry ; strategies for successful operations in China with some dos & don’ts ; exports to China ; German companies managing entry and operations in China and Mergers & Acquisitions. Mr. Arvind Kapur, Vice President, ACMA thanked the Chief Guest & all the speakers for their time and contribution.


Auto NewsGlobalisation & India Brand Building Committee

ACMA-ISB Business Excellence Leadership ProgramHyderabad: March 13-16, 2011

ACMA has been working with ISB, Hyderabad to design & develop a unique program to address a specific need of the industry and signed an MOU with ISB, Hyderabad. Keeping in view ACMA's need for an exclusive program to delineate industry challenges of globalization; strategizing and adapting a global mindset, ACMA and ISB jointly organised a Business Excellence Leadership Program on "Winning in the flat world: Strategies to Meet the Globalization Challenges”.

This initiative was led by Mr Harish Lakshman, Program Chairman and Chairman, ACMA (SR). Mr. Lakshman had visited Hyderabad and also had subsequent teleconferences along with Mr. Srivats Ram, President, ACMA; Mr. Arvind Kapur, Vice-President, ACMA and Mr. Jayant Davar, Chairman GIBB, ACMA, with the esteemed faculty - Dr. Srinivasa U. Rangan, Research Fellow, Asian Institute for Latin American Business at Babson and Prof. Sam Hariharan, Associate Professor in Management, Babson College, MA - USA, to design and develop this unique program.

During the discussions, it was decided that the program to be organised for three days. It was also suggested that the program content should be based on case studies and each day could be addressed with a theme and a thought leader from the Industry to be invited to share their perspectives. Accordingly, the broad program was developed on the following:I) Day 1 : Strategy: What, Why and How: Sessions focused on forces

driving the globalization of industries, and the key challenges faced by established companies, how to respond to the increasing globalization of industry etc.

II) Day 2 :The World as a Market: Sessions included Alliances, Cross boarder acquisition, becoming a global player etc.

III) Day 3: Leading Transformation: This contained creating and managing global organization, session on Finances, Panel discussion

This Leadership program was organised at ISB Campus.This was well attended by 26 participants consisting of CEOs/Directors/Presidents etc. from 16 member companies. The participants were divided in five groups and numerous group activities were organized by the faculty during the session. All the groups were given the task to discuss and represent the case studies in different scenarios. Thought leaders from the Industry like Mr. John Flintham, CEO-Global Operations and Mr. Gautam Malhotra, Joint Managing Director, Amtek; Mr. Sampathkumar Moorthy, Executive Director, Sundram Fasteners Ltd.; Mr. Ramesh Dhar, CEO, Woco Motherson Elastomer Ltd (Motherson Group), were also present and addressed the participants and share their perspective and given an insight of Globalisation. Some of the interesting feedbacks received from the participants were:• The program was very much useful looking at present business

scenario, • Had a very systematic approach rather than by instant. • The course content was very well structured with relevant case

studies, • Discussion points initiated by the faculty gave understanding of

various perspectives, • The Case studies -Analysis, Analog, Correlating it to Indian

companies was most useful, these real case studies able to integrate the content.

It was felt that such unique program could be continued in the near future.


Auto News2nd All India IPO Suppliers ConferenceChennai: February 3, 2011

ACMA has been taking many initiatives in strengthening the business relationship and linkages between the OEMs, IPOs (International Purchasing office in India) and the component industry in order to sustain the growth and bring new opportunities. In order to carry this forward, IPO members joined together and formed an IPO Forum, in year 2008. This forum is convened by Mr. B.K. Bose, VP India Sourcing – Cummins and more than 35 IPOs are actively involved in this forum.

After the success of 1st IPO Suppliers Conference held in New Delhi in year 2009, IPO Forum in its second initiative organised the 2nd All India IPO Suppliers Conference.

At the Inaugural session, Mr. Bose welcomed the IPOs & Suppliers and briefed them about the initiative that has been taken by the forum. He updated that the forum has already met several times and the objective of the Forum is to develop a platform to discuss common issues between the IPOs and suppliers in India and to examine how to further strengthen the network and to bring new opportunities to grow the export of automotive components from India in the future.

Mr. Jayant Davar, Immediate Past President & Chairman – Globalisation Committee & India Brand Building, ACMA, welcomed and complimented the forum for carrying forward such an initiative of meeting supplier and IPO together. Also in his remarks he mentioned that the 2nd Conference of its kind shows encouraging response from both partners which highlights the importance of continuing such initiatives that is facilitating the industry in outreaching international domain and addressing the opportunities in establishing linkages through this forum.

RELEASE OF CD ON "A GUIDE TO IMPROVE SUPPLY CHAIN EFFECTIVENESS" - AN INITIATIVE TAKEN BY THE IPO FORUM

Mr. Umesh Gujarathi, Head Sourcing, Magna International Inc. briefed everyone about the idea on the initiative to Improve Supply Chain Effectiveness after which he requested Mr. Davar & Mr. Bose to release the CD on "A Guide to improve supply chain effectiveness"

Mr. K. V. Praveen, Senior Manager, Global Purchasing, Arvin Meritor made a presentation on Understand other LCC pricing and identify levers to improve cost competitiveness, Mr. Nomi Varghese, Head IPO, Cummins presented on Improve Quality deployment at Tier-II suppliers, & Mr. Mr. N. R. Ramakrishnan, Manager Global Procurement, Mercedez-Benz presented on Improve Project Management Capability Development.

Mr. Girish Sethi, Associate Vice President, Wartsila India Ltd. made a presentation on “Global Sourcing plans & Opportunities of doing business with Wartsila followed by a panel discussion moderated by Mr. Bijoy K. Bose, VP (India Sourcing), Cummins was held on “How to improve upon various aspects contributing to enhancement of sourcing from India”

The Panelists were Mr. Reinhold Hierl, Director International Purchasing, BMW India, Mr. Nilesh Shah, Director – SFO, GM India, Mr. Jayant Davar, Immediate Past President & Chairman – Globalisation & India Brand Building & Mr. F.R. Singhvi, Joint Managing Director, Sansera Engineering Pvt. Ltd.

The Panel also discussed the current scenario, India compared to other LCC destinations, Role of IPO / Role of Suppliers, Strengths of India Sourcing, Areas of Improvement.

Business Enhancement & Partnership Opportunity: Meeting With Japanese Trade Delegation To India New Delhi: February 14-15, 2011

JAPIA (ACMA’s MoU Partner) brought a 13-member delegation from 11 auto component companies to India. The broad objective of the delegation was to learn the latest auto industry status in India and also to exchange information concerning auto and auto-component industries in both countries.

ACMA had a meeting with the incoming delegation on 15th February 2011. Mr. Jayant Davar, Immediate Past President & Chairman –

Globalisation Committee & India Brand Building, ACMA, opened the session. He tendered a special word of welcome to Shitanaka san, leader of the JAPIA delegation from Osaka region, Kogi San, deputy leader of the mission and other delegation members.

Mr. Davar, made a presentation on the Indian automotive industry and opportunities followed by which a presentation was given by Mr. Yutaka Masuda, Branch Manager, JAPIA on the Japanese Automotive industry. Mr. Masuda stated that more such visits in the future for this delegation would make them understand much more about the industry here and many companies who are planning for investing in India from Japan would then take such initiative. ACMA supported the Delegation, by


Auto Newsorganizing two plant visits on 14 & 15 February, 2011. Business Meetings for ACMA Members with the incoming delegation was also organised in Delhi on 15th February where around 15 companies participated from the

Indian side. There were senior management teams from both the sides. A list of participating companies with product profile was marketed in advance and also pre-arranged meetings were organised.

CEOs’ Mission To China March 7-12, 2011ACMA in cooperation with Indian Embassy in Beijing and Indian Consulate in Shanghai organised a CEOs’ Mission to China from March 7-12, 2011. The mission was led by Mr. Srivats Ram, President, ACMA. Some of the highlights of the visit were: INTERACTION WITH INDIAN AMBASSADOR TO CHINA H.E. DR. S. JAISHANKARThe delegation had an interaction with H.E. Dr. S. Jaishankar, Indian Ambassador to China. Dr. Jaishankar gave insights on the Chinese industry on trade and other strategic sectors & relations between India and China which have evolved, grown, matured and have become truly multi-faceted over the years. PRESENTATION BY GRANDALL LEGAL GROUP (BEIJING) ON BASIC LEGAL FRAMEWORK FOR DOING BUSINESS IN CHINESE AUTOMOTIVE INDUSTRYMr. Gregory Sy, Grandall Legal Group made a detailed presentation on Basic Legal Framework for Doing Business in Chinese automotive industry. He briefed the members of the delegation on the Operational Issues of the Chinese Auto Component Industry including areas such as • Intellectual Property

• Tax• Labor & Employment• M&A Transaction Lifecycle • Regulatory ApprovalsSEMINAR ON “EXPLORING OPPORTUNITIES FOR INDIA - CHINA CO-OPERATION IN THE AUTO COMPONENTS SECTOR”Coinciding with the mission visit, a seminar on “Exploring Opportunities for India - China Co-operation in the Auto Components sector” was held in Beijing. The seminar projected the opportunities available for Indian firms in China, and for Chinese firms in India. Indian companies crave access to what is currently the world’s largest automotive market, and Chinese companies seek cheaper sourcing alternatives as well as market access to the world’s second most populous country.Mr. Srivats Ram made a detailed presentation on the Indian auto-component industry He mentioned that the fast pace of growth and development of the Chinese Automotive industry and the rapidly growing trade between our two nations had motivated ACMA to explore opportunities for collaborations. VISIT TO BEIQI FOTON MOTOR CO. LTDMr. R. Shankar, Executive Vice President, India Operation & Mr. Casper Zhaoke, Office Director of India Operation welcomed members to Beiqi Foton heavy duty truck plant having annual Capacity-1 lakh. Delegates were then taken for a guided plant tour.


Auto NewsAfter the plant tour Mr. John, CEO, India Operations welcomed the delegates & had discussions with them about the plans of Foton entering India followed by an opportunity of meeting Mr. Wang Meichen, Vice President, Procurement who welcomed and hosted a dinner for the delegates on behalf of Foton . VISIT TO GREAT WALL MOTOR COMPANY LTDGreat Wall Motor Company Limited is a large multinational company, the first private whole vehicle automaker listed on the Hong Kong Stock Exchange.The delegates were welcomed by Mr. Liu Pingfu, Vice Chairman who gave a brief presentation about the company .Delegates were then taken for a guided plant tour.VISIT TO SAIC MOTOR CORPORATION LIMITEDSAIC is one of the top 3 automotive corporations in China, Shanghai Automotive Industry Corporation (“SAIC Group” for short) is mainly engaged in manufacturing, sales, research and development, and investment in passenger cars, commercial vehicles and automobile components, as well as related services trade and financial business.The delegates were welcomed by Mr. Zu Si Jie, Director who gave a brief presentation about the company .Delegates were then taken for a guided plant tour.VISIT TO YANFENG VISTEON AUTOMOTIVE TRIM SYSTEMSThe business of Yanfeng Visteon covers automotive interior, exterior, seating, electronics and safety systems. Yanfeng Visteon set up around 70 production bases across China and overseas to satisfy the customers of more than 30 OEMs, including the export to over 14 countries and areas

in the North America, Europe, Australia and South East Asia. The delegates were welcomed by Mr. Joseph Lee, Senior Director who gave a brief presentation about the company. Delegates were then taken for a guided plant tour.8. MEETING WITH SHANGHAI INTERNATIONAL AUTOMOBILE CITYShanghai International Automobile City (Shanghai Auto City) is a key project of municipal government in the “10th-Five-Year Plan” period. As a comprehensive auto production base on the west outskirts of Shanghai, it joins in with the microelectronic industrial base in the east of Shanghai, the petrochemical industrial base in the south of it and the high-grade iron and steel production base in the north of it to make up the four industrial bases of Shanghai.With a planned area of 68 km2, Shanghai Auto City is located in Anting, comprising the Kernel Zone, the Car-Making (http://www.csvw.com/) & P a r t s S u p p l y Z o n e , S h a n g h a i I n t e r n a t i o n a l C i r c u i t （ h t t p : / / w w w . i c s h . s h . c n /） , t h e E d u c a t i o n Z o n e (http://web.tongji.edu.cn/~jdcc/), New Town of Anting, etc. It is a comprehensive auto-making base as well as a new modern town with integrated functions of manufacturing, R&D, trading, expo, sports, tourism.The delegates were welcomed by Mr. Wenwei Rong, General Manager, who gave a briefing about the International Automobile City. VISIT TO FAURECIA AUTOMOTIVE SYSTEMS CO. LTD.Faurecia business groups – automotive seating, emissions control technologies, interior systems and automotive exteriors – are strongly present in China where the Group employs over 4,000 people with 17


Auto Newsplants and four R&D centers, serving both international and local Chinese automakers. The Group generated sales of EUR 670 million in China in 2009 and plans to reach EUR 1.7 billion sales by 2014, with Asia accounting for 15% of Group sales versus 7% in 2009.The delegates were welcomed by Mr. Henry Xu, General Manager, Faurecia Automotive Systems who gave a brief presentation about the company. Delegates were then taken for a guided plant tour.PLANT VISIT TO FUYAO GROUP SHANGHAI AUTOMOBILE GLASS CO. LTD.Fuyao Group is a joint venture corporation founded in 1987 in Fuzhou, specialised in production of automotive safety glass and industrial technological glass, and is the first company of the trade in China listed in the Shanghai Stock Exchange in 1993 named Fuyao Glass.The delegates had an opportunity of visiting one of the largest glass factory. Mr. Jianhong Zhu, Vice General Manager, Faurecia Automotive Systems welcomed the delegates and guided them for the plant tour.INTERACTION & NETWORKING DINNERThe delegation had an opportunity of interacting & networking with Indian Investors in China (representatives of Indian Automotive Companies, Indian Companies who have set-up their plant in China & Indian Banks). The dinner reception was hosted by President ACMA in honor of the chief guest Mrs. Riva Ganguly Das, Consul General,Consulate General of India, Shanghai.

SEMINAR ON “EXPLORING OPPORTUNITIES FOR INDIA - CHINA CO-OPERATION IN THE AUTO COMPONENTS SECTOR” & CO-OPERATION MEETA seminar on “Exploring Opportunities for India - China Co-operation in the Auto Components sector” was also held in Shanghai. Mrs. Riva Ganguly Das, Consul General, Consulate General of India in her remarks stated that Trade and Commerce is one of the key drivers of both countries relationship. Last year our bilateral trade crossed the target of US $ 60 billion. The two governments have now agreed on a trade target of US $ 100 billion by 2015. Eastern China comprising of Jiangsu, Zhejiang & Shanghai plays a key role in our bilateral trade accounting for over 1/3rd of our total trade. Last year trade between the eastern China region and India was US$ 21.46 billion. There were more than 100 visitors from OEM and Tier 1 in China along with large aftermarket distributors and dealers who attended the Seminar. A list of participating Indian companies with product profile was marketed in advance and also one to one meetings were organised. VISIT TO SUNDARAM FASTENERS PLANT AT JIAXING, ZHEJIANGThe delegates were welcomed by Mr. R. Premkumar, Country Head who gave a brief presentation about the company and also shared his experience of doing business in China. Delegates were then taken for a guided plant tour.

India Show 2011Sao Paulo, Brazil: March 11-14, 2011

The India Show took place in Sao Paulo, Brazil. The show was organized by Confederation of Indian Industry (CII), Embassy of India, Brazil with the support of Ministry of Commerce, Government of India 57 Indian companies participated in this show from all the major sectors like automotive, auto-component, oil and gas, textile, etc to show the capability of the Indian manufacturing sector. There were 15 companies from the auto-component sector who participated in this show. 9-member companies participated in this show and displayed their product profile. Apart from this, 11 member companies displayed their product catalogue.The show was inaugurated on 11th March 2011 and saw several dignitaries presence during the inauguration, ceremony including

Mr. Noel Tata, etc. following the inauguration there was a Seminar was orgainised where following people were present. 1) Mr. Alessandro Teixeira, Executive Secretary of the Development,

Industry and External Commerce Ministry, Brazil 2) Mr.Geraldo Rinaldi, Sindepecas, Brazil3) Mr.Roberto Paranhos do Rio Branco, President, India Chamber of

Commerce, Brazil4) Mr.Renato Teixeira, Director, Petrobras, BrazilThe show was well taken by the ACMA members and few of them got some leads from companies like Arvin Meritor, Siemens etc. It is also felt by the members that in order to have a presence in Brazil, companies should have a representative office in the country that would help companies to have successful business relations with their Brazilian counterparts.


Auto NewsSME Committee

Workshop on Business Strategy, Planning & Organisation StructureNew Delhi: March 9, 2011

ACMA – SME Committee organised a Workshop on Business Strategy, Planning & Organisation Structure.

Mr. Sunil Arora, Chairman - SME Committee & Joint Managing Director, Abilities India Pistons & Rings Ltd. gave a warm welcome to the delegates and to the faculty members Mr. M K Pajan, Advisor, Abilities India Pistons & Rings Ltd. & Dr. Sumit Roy, Counsellor – Business Process Improvement & TQM, Pune.

Speaking on the occasion Mr. Arora said that long term planning, strategies and structure were pillars to sustainable prosperity for all organizations including SME organisations. However, certain constraints come in the way of making a concerted effort towards these goals in case of SMEs. Gaps in data management, competency of personnel, absence of certain basic systems, poor employee participation in managing PQCDSM (Productivity, Quality, Cost, Delivery, Safety & Morale), etc. make the task even more challenging for the SMEs, he added. The

workshop had been designed specially for the SME member companies of ACMA in order to enable them develop basic foundation of such managerial practices that would help the SME entrepreneurs to appreciate corporate planning, strategic management and organizational structure better, he reiterated.

The faculty, Dr. Roy & Mr. Pajan gave a presentation on the Business Process Improvements & TQM. Some of the topics covered in the presentation were : current scenario of the auto component industry in India – its opportunities, challenges and threats ; technological trends in automotive industry ; building blocks for becoming a world class organization by creating a common vision, mission and great values in the organisations ; Focus areas for the senior management in SMEs ; daily work management and how to set the responsibility & the accountability amongst the employees ; centralisation and de-centralisation of decision making and employee empowerment and managerial control, etc. The workshop covered the topics through discussions, examples, group tasks rather than bringing the conceptual part through theoretical models.

The Workshop was yet another initiative attempted to enhance the capabilities of the SME companies on aspects such as Business Strategy & Planning and the Organisation Structure and it was very interactive.

Sustainable Technology Development Committee

Addressing impact of Emission Norms on the Supply ChainKothrud, Pune:February 7, 2011

The Sustainable Technology Development Committee (STDC) of ACMA led by Mr. Arvind Balaji, Chairman (STDC) organized a Workshop on “Future Direction of Emission Standards and Potential Impact on the Automotive Supply Chain”, along with Cummins India Ltd. at the Kothrud facility of Cummins.

Mr. Craig A Barnes, Chief Technical Officer, Cummins India made a presentation to members of ACMA on the subject. Earlier, welcoming the members, Mr. B.K. Bose, Vice President-Outsourcing, International Purchasing Organization, Cummins India Ltd., briefed on Cummins and its businesses. He also appreciated the efforts of ACMA for organizing the

Workshop and mentioned that Cummins supported this initiative in the interest of the industry and particularly its Supply Chain.

Adding his own welcome, Mr. Arvind Balaji mentioned that Cummins had been a very good mentor for a lot of players in the auto component sector. With environment norms in India also catching up equally fast, there is an added pressure to speed up the whole process of technology enhancement and upgradation and the workshop was aimed at providing an understanding from the leaders in engine technology on the future directions, what its impact would be on the automotive and the auto component industry in particular and the suggested way forward for the component industry to align itself to meet customer expectations, he said.

Mr. Craig in his presentation gave an overview of how Cummins kept its technology updated. US was the most stringent in terms of Emission norms he said followed by Europe. He also mentioned that Europe by 2013 would catch up with the US in terms of Emission Norms. He also mentioned of the off-highway products also getting into “Tier-4” norms made for off-highway products.


Auto NewsNorms were technology neutral he mentioned. Focus on product architecture for the right technology was very important. Integrating critical sub-systems was very crucial for developing standards. Citing examples, he mentioned that while the US went about the Exhaust Gas Re-circulation “EGR” to address emissions, Europe adopted the Selective Catalytic Reductions “SCR” methodology. India he mentioned was following the SCR methodology.

He also urged ACMA to participate with the Engine Manufacturers to

jointly work upon the new emissions standards with the Government. Fuel sulphur content was very critical for moving from the current standards to Euro-6 he mentioned, which was a challenge for the Govt. and the oil companies.

The workshop also included a visit to the Shop Floor which included a visit to the R&D Labs. Best practices on 6Sigma, Kaizen were shown during the visit. Cummins also had adopted the “Cummins Operating Systems” world-wide.

Young Business Leaders’ Forum (YBLF)

Interaction with Mr. Chaand Sehgal, Chairman, Samvardhana Motherson GroupGurgaon: February 19, 2011

YBLF, as a part of its calendar for the current year, organised an interaction with Mr. Chaand Sehgal, Chairman, Samvardhana Motherson Group.Mr. Sanjay Labroo, Chairman & Chief Mentor – YBLF and Managing Director & CEO, Asahi India Glass Ltd. gave a warm welcome to Mr. Chaand Sehgal and described Mr. Sehgal as the “Quintessential

entrepreneur” who has an inextinguishable burning desire in him. He also spoke of his long and wonderful association with Mr. Sehgal and emphasized the crucial role played by Mr. Sehgal and the significant contribution provided by him in placing the India on the global map of the auto component industry. The interaction was most informative and an eye opener for most of the YBLF members who participated. Mr Sehgal shared his personal experiences in the Auto sector with complete candor and made a presentation sharing his experiences on “How to manage partnerships and how to go Global”.Mr. Sehgal emphasized on the key role to be played by the younger CEOs for running their companies successfully. Following are some of the excerpts of the presentation / interaction :

ACMA in the PressACMA in the PressACMA in the PressACMA in the Press


Auto News


Auto NewsAbout Management & Ownership :

• It is important to know and understand the difference between the Entrepreneur and the Professionals. Entrepreneur is the person who thinks of growth of the organisation and a risk taker but the Professional will not take more than 1/10th of the risk that an entrepreneur takes. An entrepreneur is a seeker, a risk taker, a leader and if he is wise he is a team maker. An entrepreneur is a person who understands and values the professionals. Professional’s competency should be strengthened by “empowerment” without which he can’t be a “good performer”. If the professionals do not perform, get into the details and if the problem was not created by him then he is not to be blamed for it. However, he should come with options of solving it.

• The management & the Ownership should be understood clearly and what role one should play.

• An entrepreneur should provide good leadership ; strategy ; resources; clear deliverables ; endless motivation and inspiration

• Have clear vision and direction. The world steps out to a person who knows where he or she is going. One should set his standard & follow them very strictly and it should be seen by others.

Management�Involve the Management and make them participate in the vision and dream of the company�Make the challenges interesting so that no one could resist �Give good recognition to the achievements�Problem of “passing the buck” need to be tackled by the Manager and by an entrepreneur�Catch the pulse of your organisation

• “ROCE – Return on Capital Employed” is an important factor which is the pulse and the very important indicator of the general health of the organisation

• Always follow the “Customer”Managing the JVs:• Analyse and understand why a JV is required and be clear on your

requirement from the JV• Great partnerships are built on mutual understanding and trust• JV can’t survive if trust is lost• The actual worth is determined not just by the quantum of money on

stake or percentages / majority vs minority, but by the overall value

that one could create.• Think over, if both the JV partners are not sitting on the same side or

at opposite sides• Key parameters for Acquisition �“No single formula that fits all”�One need to take decisions based on ones circumstances, intuitions

and gut feel which get developed over a period of time with experience

Going Global • Think global, as it matters a lot now• What is required is to assess the environment and quickly adjust to it• Think of placing overseas local persons handling the overseas

offices, it saves lot of problems• Strategically position yourself and grab the opportunities• Communicate the vision to all. • Look at the assets and the technology for going global• Manage and motivate the workforce. Build a strong family culture

with good family values. Work harder than the workforce and let that be visible to all. Make yourself easy accessible to the workforce

• Move the people to tackle bossism and try and create a team rather• Employee once leaves Motherson is not taken back as Mr. Sehgal

values “loyalty” and will not be unfair to loyal persons• Started Motherson “debt-free” and still debt-free as he gave shares

at par to the employees and made the employees as the shareholders of the company

• Know where you want to reach & when�Have definite, clear-cut, practical, ideal – goal & objective


Auto News��Forget benchmarks, consider yourself�There is a price to pay for the SUCCESS. Question yourself how much are you ready to Sacrifice to achieve success�Great minds have purposes and the rest only desire�“All I have done - I Listened to people”

• Goodness need to start from the top and penetrate down the line

Have the necessary means to achieve your ends • Add one more “S – Sustainability” to the QCDSES which is very important

• ROCE is the Pulse of the organisationThe Presentation by Mr. Sehgal was followed by a good interactive session with him. Mr. Sehgal very ably fielded all the questions that were posed to him.Mr. Anmol Jain, Core Team Member of YBLF delivered the Vote of Thanks.

MISSION TO SOUTH AFRICAMARCH 14-18, 2011Continuing its endeavor to understand the global automotive markets, in order to realize the status of other players in the field, ACMA – YBLF organised yet another Overseas Mission from 14 to 18 March 2011 – this time to – South Africa, one of the upcoming markets. The Mission was led by Mr. Sanjay Labroo, Past President & Chairman – YBLF. The Deputy Leader of the Mission was Mr. Ravi Machani, National Co-ordinator for YBLF.

OEMs Visited by the Mission : BMW ; Nissan ; Toyota

Component Manufacturing companies visited :• Flextech Manufacturing (Pty.) Ltd. ; • Automotive Leather Company ; • SAS Automotive RSA (Pty) Ltd. ; • Behr South Africa ; • Federal Mogul CorporationInteractions with Industry Associations :• Meeting with NAAMSA- the National Association of Automobile

Manufacturers of South Africa.• Meeting with NAACAM - The National Association of Automotive

Component & Allied Mfrs. – the counterpart of ACMA in South Africa.• Automotive Industry Development Centre (AIDC)

Interactions with CGI :• Meeting with Mr. Vikram Doraiswamy, Consul General, Consulate

General of India in Johannesburg

South Africa’s Automotive Sector :The automotive industry is one of South Africa's most important sectors, with many of the major multinationals using South Africa to source components and assemble vehicles for both the local and international markets. Despite its distance from some of the major markets, Africa and particularly South Africa, produces high quality products at prices competitive with other automotive manufacturing and assembly centres. The South African automotive and components industry is growing rapidly and is perfectly placed for investment opportunities. Vehicle manufacturers such as BMW, Nissan, Toyota, Ford, Volkswagen, Mercedes Benz, etc. have production plants in the country. Indian auto majors, Tata & Mahindra also have their presence. The government has identified the automotive industry as a key growth

sector and aims to increase its vehicle production to 1.2 million units by 2020 while significantly increasing the local content at the same time.The Component manufacturing industry of South Africa is a US$ 9 billion industry (as in 2010) with 35% OE, 45% export, 20% aftermarket.The outlook for the vehicle industry is bright in terms of both exports and the domestic market. A key challenge will be to raise local content, particularly in the vehicles now being exported in large volumes. The Mission’s programme began with a Meeting with the Vehicle Manufacturers Industry Association of South Africa, named – NAAMSA (National Association of Automobile Manufacturers of South Africa). NAAMSA is an important source of information about the motor industry in sub-Saharan Africa for the last 50 years. Every month, NAAMSA makes the headlines with its release of the latest new vehicle sales figures, which have become recognised as significant barometers of the country's economic activity, consumer trends and general fiscal health. Mr. Nico Vermeulen, Director & Dr. Norman Lamprecht, the Executive Manager, interacted with the delegation. Dr. Norman Lamprecht made a presentation giving an overview and performance of the South African Automotive Industry which had a volume of 4,72,049 units in 2010. The projected figure of the SA automotive industry for 2011 is 5,56,000.This was followed by a Meeting with the Consul General of India in Johannesburg – Mr. Vikram Doraiswami who gave a brief history and an Overview of the South African automotive industry which was identified as one of the important sectors for potential for employment creation, post 1994. The Consulate General organised an evening interactive session @ Johannesburg, for the Mission members wherein the financial experts, the South African automotive business community & the press were invited to interact with the mission members. Mr. Ettienne Le Roux of Rand Merchant Bank made a presentation which provided a macro forecast summary of the South African economy vis-à-vis the world economy. The Mission Leader Mr Sanjay Labroo thanked Mr. Doraiswami and his consulate, in particular – Mr. R Masakui – the Consul (Commerce & Head of Chancery), CGI for their support & guidance for the mission.The YBLF team members had a meeting with NAACAM - an acronym of The National Association of Automotive Component & Allied Mfrs. – the counterpart of ACMA in South Africa. Mr. Stewart Jennings, President ; Mr. Theo Loock, Vice President and Mr. Roger Pitot, Executive Director interacted with the visiting YBLF Mission delegates. NAACAM was established in 1980 to represent the component and spare parts manufacturers which at present has 190 members comprising 70% of


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Auto Newsdedicated auto component manufacturing companies in SA. The Sales for 2010 exceeded R65 billion (US$9 bn), with 35% OE, 45% export, 20% aftermarket. An unique service provided by NAACAM to its members is Benchmarking the Sector which conducts a survey through the South African Automotive Benchmarking Club (SAABC) annually. The objective of the study is to assist the SA component suppliers in competing with Asia Pacific and Easter European companies for global automotive business. Through this benchmarking methodology process, a report is compiled on each participating firm that outlines comparative performance in the areas of Financial Performance ; Customer Benchmark Index ; Cost Competitiveness ; Operational Competitiveness, etc.The mission members visited BMW (South Africa) (Pty.) Ltd. at Rosslyn. A presentation on the BMW was made to the mission members. BMW South Africa was started in 1974 at Rosslyn. During the last three decades, BMW South Africa has moved from operating as a Completely Knocked Down (CKD) vehicle production plant, assembling vehicles with limited customisation possibilities for the local market, to a world class plant capable of producing customised cars for discerning customers across the globe. In 2009, BMW invested @ the Rosslyn plant Rand 2.2 billion more which has increased the Plant Production capacity to 87,000 units. At the moment, the plant produces 50,000 units out of which 15% is for South Africa ; 50% for USA ; 5% for Canada ; 15% for Japan ; 5.5 % for East Asia ; 8.5% for Australia / New Zealand ; 0.1% to other parts of Africa. Only CKD is sent to India. BMW South Africa had fetched the name of “Cleanest Auto manufacturer of South Africa”.The next visit was to Nissan plant. Mr. Nigel, Plant Tour Coordinator, Nissan gave a warm welcome to the mission members and made a presentation on the company. In 1958, the first Datsun – the originator of Nissan - went to South Africa and in 1960 the operations started in Pretoria. The Rosslyn plant which was visited by the mission members was commissioned in 1965. In 1976 – 78, Datsun was best seller in South Africa. In 1980 the Datsun Nissan became Nissan South Africa. The Nissan Plant has a capacity of 6500 units a month, however the production is 5000 units a month. The localization of parts : 60% for Sandero ; 100% for NP 200 & only Engine gear boxes imported for NP 300.Mr. Barlow Manilal, CEO of Automotive Industry Development Centre (AIDC) gave a warm welcome to the mission members and initiated the discussions. Mr. Fayaz Sacoor, Manager – Business Development made a presentation on the initiatives of AIDC. AIDC is a government owned service organisation providing best practice solutions in facilitating industry and government projects / strategic initiatives with a view to creating economic growth in the country. The AIDC has been established to assist in increasing the global competitiveness of the South African automotive industry to world-class levels. AIDC could take the complete turn-key projects for setting up a project as a single window, starting from project initiation till handing over of plant to the company (Design to Delivery), considering the employment creation and economic growth of the country.The Mission members also had an opportunity to meet and interact with Mr. Vivek Avasthi, Head of Motherson group (an ACMA member) who have their presence in South Africa who gave an in-depth details on the

South African market and the perspective of do’s and don’ts of a component manufacturer operating from the country.The mission members visited a South African based component manufacturing company – Flextech Manfacturing (Pty.) Ltd. A South African business entity located in Pretoria, Gauteng Province, Flextech is a supplier of Control Cables ; Rear View Mirror assemblies as well as plastic injection molded parts for the local as well as international markets, for the last 2 decades. Mr. Bill Bowman, Plant Manager & Mr. Peter Philips, Technical Director gave a warm welcome and made a presentation on the company. The Company which was started in 1982 underwent problems during global financial melt down. However, the strong strategies & push back measures implemented, including major investments, made now the company a strong globally integrated supplier of “Control System Assemblies” and Rear View Mirror Systems.The second South African based company visited by the mission members was – Automotive Leather Company (ALC). Mr. Francois Barnard, Chief Executive along with his senior management persons gave a warm welcome to the mission members. ALC is a privately owned South African company established in 1990 manufactures and exports exclusive automotive leather interior trim components such as Seat covers, Trim inserts; Steering Wheel covers as well as Gear and Handbrake grips and Bellows with a Sales turnover of Rand 1 billion with 900 staff members for the group as a whole. The highlight is ALC managed to get 30% wage reduction without compromising on competitiveness of the employees & company.The third South African company visited by the mission members was SAS Automotive RSA (Pty.) Ltd. who manufactures Integrated Cockpit and front end modules for the automotive industry. Mr. Sven Damm, Managing Director gave a warm welcome to the mission members and made a presentation on the company. SAS is a 50% JV between Continental – the market leader in Information Management in Automobile interior & Faurecia – the market leader for Instrument Panels. SAS has 22 plants and 12 Sales & Engineering centers worldwide with a turnover of Euros 4 billion for 2010 with Volkswagen as their biggest customer with 35% of its sales worldwide. However, in South Africa, their Customer is BMW. The Quality PPM of SAS is less than 10.The Mission members were invited to visit the Headquarters of Midas Group in Johannesburg. The Midas group, which primarily operates in the replacement automotive parts industry, was founded in 1968. The group currently employs 1233 members of staff and generated sales in excess of R 2.5 billion in 2010. The group markets and distributes quality automotive, DIY, DIFM and leisure products and services through selected channels.The First visit of the last day of the Mission was to yet another Japanese OEM – Toyota SA Motors (Pty) Ltd. – the Number 1 car manufacturer of South Africa. Mr. Nigel Ward, Senior Vice President, Manufacturing Support group gave a warm welcome to the delegation members and interacted with them. An introductory corporate film was also shown to the members followed by a Visit to their plant. Toyota as a group has 52 companies in 26 countries with 3,00,000 employees. Toyota entered into South Africa in 1962 and the Durban plant where the mission members visited was established in 1971. Toyota has been the market leader for


Auto Newsthe last 31 years. It has plans to produce “Etios” in South Africa which has been imported from India at present. Toyota has 60% localization due to cost advantages. Toyota Production System is followed in plant with excellence in lean manufacturing principles. Kanban implemented at goods receiving area and Kaizen is implemented to improve productivity and inbuilt quality. Stringent Product Evaluation and Audit Systems are also implemented. High level of TQM initiatives and high level of detailed analysis are also done. Vision 2015 of Toyota is to go to “Emerging Countries”.The mission visited a MNC component manufacturing company – Behr South Africa (Pty) Ltd. in Durban. Mr. Hans Schmid, Plant Manager gave a warm welcome to the mission members. Behr is a systems partner for the international automobile industry. A specialist for automotive air conditioning and engine cooling systems, the Behr Group is one of the world’s leading manufacturers and suppliers of original equipment for passenger and commercial vehicles. Currently Behr employs 16,000 staff at 11 development, 22 production sites and 14 joint ventures worldwide. Sales in the 2009 business year came to around 2.5 billion euros. Behr South Africa based in Durban, was founded in 1999. It manufactures

Radiators / Air coolers / Heat exchangers / Tubes & Turbulators. It increasingly focuses on aluminum tube production for a large number of group companies. Behr South Africa is the group’s “vehicle” in another important growth market for the international automotive industry. Behr manufactures the plastic parts as well in the factory itself for aftermarket. Behr Production System is followed here. The sales in 2010 was Rand 892, 259, 000. It is expected to go up to Rand 903,874,000 for 2011. The Vision of Behr is to be “The Preferred Supplier”.The final visit of the mission was to a world class MNC - the Federal Mogul Corporation in Durban. Mr. Evan Slack, Plant Manager of Pinetown plant gave a warm welcome to the mission members and facilitated them through. The Durban plant of Federal Mogul is a 10 year old plant which manufactures Power Train Sealings & Bearings. Federal-Mogul Corporation is an innovative and diversified $6.2 billion global supplier of quality products, trusted brands and creative solutions to manufacturers of automotive, light commercial, heavy-duty and off-highway vehicles, as well as in power generation, aerospace, marine, rail and industrial. The 43,000 people of Federal-Mogul located in 34 countries drive excellence in all they do.

EASTERN REGION

ACMA (ER) – Workshop on 1S, 2S & SafetyJamshedpur: February 19, 2011 ACMA (ER) successfully organized a half a day workshop on “1S, 2S & Safety”. The workshop mainly focussed on the sorting out and systematic arrangement of everything on the shop floor and showed how they are linked with the safety of the employees. The programme mainly involved the shop floor associates who are engaged in 1S and 2S activities and who are more prone to accidents occurring on the shop floor. The main aim to organise this workshop was to create awareness for a clean, systematic and safe work place.Mr. Tapas Sahu, Regional Council member, ACMA(ER) and the Executive Director, Highco Engg. (P) Ltd. welcomed everyone and said that the need of the hour is the training of the employees. To perform a duty without any training is like a warrior fighting without a sword. A well equipped employee is the one who is well trained. The basics of 5S are always sorting out and systematic arrangement, to learn them well and to apply them in day to day applications would bring the positive change in the work environment.The faculty, Mr. K.P.S Raghuvanshi, Senior Counsellor, ACT Division ACMA, to capture the attention of the delegates started his presentation with video films on the topics covered. All the videos shown were interesting, gave good learning lessons and engaged the delegates. Mr. Raghuvanshi covered the topics; such as-

FROM THE REGIONS

i) Implementation methodologyii) Work place improvementiii) Red Tag Areaiv) Methods to implement 1Sv) Objectives and the benefits of 2Svi) Flow DiagramFor safety also, he showed various slides, where it was clearly shown that the safety starts from the employee himself . He also gave the “Heinrich Theory of occurrence of accidents” discussing, categories and types of accidents. He covered topics like; i) Unsafe conditionsii) Unsafe Actsiii) Causes of Unsafe actionsiv) Unsafe situations in officev) Effects of accidents at the operator as well as Company levelvi) Check list for safety Audits, andvii) Safety TrainingsAfter this session, Mr. Raghuvanshi took the delegates to the Shop Floor where the delegates identified the red tag areas, gave suggestions to improve the shop floor and even painted to show the gangway.

Workshop on 1S, 2S & SafetyKolkata: February 28, 2011

After the great success of the programme in Jamshedpur and a repeated request from the members to organise the same programme in Kolkata, ACMA(ER) organised it in Kolkata on 28th February 2011.

Faculty for the programme was Mr. K. P. S. Raghuvanshi, Senior Counsellor, ACT Division Acma, who has an experience of thirty five years of working in the same field in Tata Motors Ltd. and other prestigious companies of Jamshedpur.

Like the earlier programme, Mr. Raghuvanshi showed a lot of videos related to the topics. Videos, were interesting, could generate interest and curiosity among the delegates.

The topic broadly discussed were; Implementation methodology, work place improvement, red tag area, methods to implement 1S, Objectives and the benefits of 2S, methodology to implement 2S, presence and Absence of 2S and flow diagram.

Mr. Raghuvanshi linked the topics to safety and showed how it affects the life of an employee. The general negligence and its cause and effect were shown by various video clips. It was a classroom training, where there was a lot of interaction. The delegates asked every possible question on the topic and Mr. Raghuvanshi gave them the appropriate answer with the help of wonderful Audio- Visual aids.

For Safety also, Mr. Raghuvanshi gave a lot of time and discussed it in great detail. The discussion began with the slogan “Safety starts from me”. He also discussed, the Heinrich Theory of occurrence of accidents

discussing, categories and types of accidents. The topics covered by him were, i) Unsafe conditionsii) Unsafe Actsiii) Causes of Unsafe actionsiv) Unsafe situations in officev) Effects of accidents at the operator as well as Company levelvi) Safety Audit Typesvii) Check list for safety Audits, andviii) Safety TrainingsAfter the programme, the delegates went to the shop floor, where the situations were created for them to observe and identify and put the red tag. The delegates while doing the job efficiently also gave their feedback to Mr. M. K. Kejriwal, the Director of the company.

Mr. Mayank Kejriwal, Regional Council Member, ACMA(ER) and Director, Kiswok Industries Ltd. thanked everyone for taking interest and coming to attend the workshop said that for every work taking interest and taking initiative counts. He gave example of his own company and showed the changes taken place in last five months because of the ACT Cluster Programme. The savings in terms of money, time and energy, the creation of new space and the better utilisation of old space, total employee involvement , no or very low absenteeism and enthusiasm for the training programmes are some of the remarkable improvements observed in his company.

NORTHERN REGIONBuyer Seller Business Meet & ExhibitionLudhiana: February 18-19, 2011

Taking yet another initiative, this year, ACMA (Northern Region) organised a 2-day Buyer Seller Business Meet & Exhibition.

Purchasing teams from OEM/Tier-1/IPOs – Maruti Suzuki India Ltd., Honda Siel Cars India Ltd., International Tractors Ltd., Mahindra & Mahindra Swaraj Tractors Mahindra & Mahindra Ltd., Electrolux, Tractors

and Farm Equipment Ltd., Preet Tractors Pvt. Ltd., Fiat Partecipazioni India Pvt. Ltd., New Holland Fiat (India) Pvt. Ltd., ZF Lenkysysteme India Pvt. Ltd., Rail Coach Factory – Kapurthala, Rico Auto Industries Ltd., Automax, visited the show and had business meetings with the exhibitors.

The meet was inaugurated by Mr. L.D. Mittal, Chairman, Sonalika Group. In his inaugural address Mr. Mittal shared tips for being a successful entrepreneur. Mr. Mittal emphasized that it is a two way process where the keenness to do business is from both buyers and sellers. He said the buyers/OEMs are equally eager to out-source auto components.


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Coinciding with this meet ACMA also organized a seminar on Purchasing Policies and Managing Logistics. Mr. Praveen Sardana, AVP (Purchase) International Tractors Ltd. and Mr. Manpreet S. Oberoi, Sr. General Manager, Mahindra & Mahindra Swaraj Tractors shared their companies Purchasing Policies and Sourcing Strategies. Mr. U.S. Ahuja, Member EC & Zonal Coordinator – Punjab -ACMA Northern Region & Managing

Director, New Swan Enterprises also made a presentation on Advantage Punjab – The Auto Component Sourcing Destination of India.

36 companies participated in the event, who gave positive and encouraging feedback for this programme as they were able to make new contacts with the IPOs and OEMs.


Auto News2-Days Workshop on Value Stream MappingNew Delhi : February 24- 25, 2011

As part of its planned activities for the Region, ACMA (Northern Region) organised a Two Days Workshop on Value Stream Mapping (VSM) on 24th & 25th February, 2011 in New Delhi.

Mr. Sanjay Mudgal, National Expert for UNIDO-ACMA partnership programme for SMEs, the faculty for the Workshop while explaining the Process of VSM said VSM was a tool to visualize, understand and to improve processes appropriately to improve manufacturing processes. Mr. Mudgal also emphasized that Engineers should allocate more time for doing improvement activities rather than the Daily Work Management. He further explained that Value Stream Mapping (VSM) was a tool to visualize, understand and to improve processes appropriately to improve manufacturing processes in turn.

Mr. Mudgal also touched upon the importance of 5S and 3 M. He also explained that how VSM helped in visualizing more than the single process level and to see the flow, the sources of waste in the value stream, links the material and information flow besides providing a common language and blueprint for implementation. VSM was more useful than quantitative tools and ties together lean concepts and techniques, he opined.

Mr. Mudgal explained that VSM can serve as a starting point to help

management, engineers, production associates, schedulers, suppliers, and customers, ‘recognize waste’, ‘identify its causes’ and take improvement actions.

He also stressed that Value Stream mapping means working on the big picture and improving the entire process. It is a tool which helps in establishing Lean Manufacturing System in the company, which is critical for success of all businesses. He added that Automotive Component Manufacturing Companies can achieve breakthrough results using this tool.

Training Programme on Total Employee Involvement Rohtak, Haryana: March 4, 2011

ACMA (NR) organized a one day training programme on Total Employee Involvement on 4th March, 2011 at Rohtak. The objective of the programme was to understand the need of TEI, how TEI could be implemented & how it could help in enhancing the Quality & productivity and thereby bring-in overall Cultural change in the organization for the sustenance of benefits & growth.

Mr. Rajesh Jain, Member, ACMA Regional Committee (Northern Region)

& Director Lakshmi Precision Screws Ltd. welcomed the participants and the faculty Mr. Manoj Mathur.

Highlighting the need and the benefits of TEI. Mr. Jain said that TEI as a very powerful tool to motivate employees, build self confidence, develops work related healthy competition, upgrade the problem solving capability, building team work, bringing involvement of employees in an organization for continuous improvement activities, take ownership & responsibility and improves relationship among employees.

Mr. Manoj Mathur during the training emphasized it as an improvement process where each and every employee was involved to bring a cultural change and improve the health of the organization.

Mr. Mathur added that TEI was an emotional bonding and cited an example of Housewife & Mother who were able to deliver good Quality, just in time, consistently all 365 days in a year without any failure because of their emotions & concerns towards their family as they felt this is “My home”, “My family”, “My son/daughter” etc. Explaining the importance of “My”, Mr. Mathur said, employees should have a similar kind of bonding in an organization – “My Job”, “My Company”, “My Office”, “My Boss”, “My Workplace”, “My Machine” etc.

Mr. Mathur also shared 5 steps of creating a world class shop floor.


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Japanese companies look at procurement opportunities at a B2B event in ChennaiChennai: February 8, 2011

At an event organized jointly by ACMA (Southern Region) and CII, the visiting delegation from JETRO expressed the possibility of sourcing auto parts from India besides looking at partnerships in the Region. 5 companies joined the delegation to Chennai.

Mr. Harish Lakshman, Chairman, Southern Region, ACMA in his address referred to the long standing relation in the Indo-Japanese automotive sector which strengthened with the advent of Maruti. Mr. Lakshman in his presentation covered the perspective of the Indian automotive and component industry with specific mention of the advantages of manufacturing and partnering with Tamil Nadu. Tamil Nadu Government is coming out with Auto Policy – a first by any state Government which he mentioned, highlighted the importance accorded to the sector. He mentioned that while the Indian market is growing there is potential of joint growth for the Japanese and the Indian industry by riding the next wave by way of technical partnerships. He also requested the Indian companies to visit the Japanese Procurement Exhibition coinciding the IETF at which more than 10 companies were participating.

Earlier, Ms. Gayathri Sriram, Member Regional Committee, ACMA & Immediate Past Chairperson, Chennai Zone, CII SR said that the auto component sector in Tamil Nadu accounted for 7.8% of the GSDP. The global auto component value is 1.2 trillion dollars in value and is expected to reach 1.7 trillion dollars by 2015, she mentioned. Tamil Nadu is the automobile hub in India as it had abundant skilled labour, good infrastructure in terms of ports and logistics and a very friendly policy which makes it a very investor friendly state, she added.

Mr. S.A. Sekaran, Senior General Manager- Exports, Sundram Fasteners shared the company’s experiences of Manufacturing in Tamil Nadu. Mr. R Mahadevan, Group Technology Director India Pistons ltd in his presentation highlighted as to why procuring from South India was a good business strategy.

A one-to-one meeting with the visiting delegation members was organized.

Mr. Shinya Fujii, Director General, JETRO in his introductory address said that the Asian markets contributed 40% profit to Japanese companies, hence the region was important to Japan. A lot of importance was being accorded to India in view of the exponential growth prospects. Of the 725 Japanese companies in India, 200 companies were based in Tamil Nadu he mentioned. He also commended the Tamil Nadu Government for its investor friendly policies.

Communications to bring in paradigm shift to take on global challenges – Southern Region organizes a Training Workshop on Effective CommunicationsChennai” : February 28, 2011

Effective communications is key to become global said Ms. Gayathri Sriram, Member Regional Committee, ACMA Southern Region while inaugurating the one-day training workshop on Effective Communication Skills on 28th February 2011, at ACMA office in Chennai.

While growth is a focus area, it is imperative that people at all levels communicate effectively. While the engineering skills are important, effective communication in a globalized market scenario is a key necessity and challenge, she opined. She placed on record her appreciation for the management of the companies for having sent in participants for the important and this interesting Workshop.

Reiterating the objective of this training Ms. Sriram said the programme aimed at improving participants' ability to be a good listener, influence, persuade, convince, motivate, inspire and communicate with others.

Ms. Sriram also introduced the faculty, Muthu Singaram, who heads Consulting and is a corporate facilitator at Muthu Singaram Consulting. A


Auto NewsChartered Electrical Engineer with an MBA in Multimedia Finance with a passion for Entrepreneurial Development, Mentoring, Management of Emerging Technologies and Innovation. His expertise saw him take up important developmental assignments across the borders of India and was responsible in developing the Malaysian National Uniprenuer Development Programme (NUDP) at the Multimedia Development Corporation (MDC), she added. Muthu was consulting and facilitating as

faculty in various National and International organizations.

The workshop saw The Ten Commandments of Postitive Relationships, Self Awareness, Communication, Communication Barriers, Asking Questions, Listening Skills, Body Language and more being covered during the day, and included live examples, games around it for better understanding.

Workshop on Geometric Dimensioning and Tolerancing (GD&T)Bangalore: March 18-19, 2011

ACMA Southern Region (Karnataka & Hosur) organised a two-day Workshop on Geometric Dimensioning and Tolerancing (GD&T) on 18 -19 March 2011 at Bangalore.

Mr Vivek Gupta, CMD – Kavia Engineering Pvt Ltd welcomed the participants to the GD&T workshop. He emphasized the importance of GD&T standards in every company to survive in the global market. As these are common standards used globally it therefore becomes imperative for all to be able to read, interpret and use engineering drawings, and GD&T plays a major role, he said. He also explained about the benefits of GD&T.

Introducing the faculty, Mr. Gupta mentioned that, Mr. Ramamurthy from Zero Defect Consultants was an acknowledged expert and trainer in Design, Tolerancing, Quality Systems and Statistical Applications in Engineering, who had trained people on GD&T in major Indian corporate like GE, FCI, Ashok Leyland etc. He has also served as a faculty in GD&T for several training programs conducted by professional institutions. His publication on Research Methodology is being used as reference material in for students of MBA in different universities in India, he added.

Mr Gupta encouraged the participants to take advantage of the

opportunity given to them and the experience of the faculty in this subject and learn the concept which could be put to use in their respective workplace.

The workshop was designed very interestingly with audio visuals and lot of exercises for better understanding of the concept. Topics like Modern tolerancing practices, LMC, MMC, Datums, its importance and effects, true geometric counterpart, interpretation of frames and form tolerances were covered. The workshop was designed such that, after understanding every concept a brief evaluation in the form of test was conducted, which was very useful for the participants and the faculty to actually know how much has been understood. This concept was very well received and the participants enjoyed the evaluation method.

WESTERN REGION

3rd SMED Competition Pune: February 12, 2011

At the third edition of SMED (Single Minute Exchange of Dies) Competition, Mr. S.M. Shah, SBU Head (Bearings), Kirloskar Oil Engines Ltd. said that such platform provide much needed exposure to the membership on various methods of improvements. Mr. Shah further stated that the rising raw material prices, increased interest rate and inflation are not in our control so to remain cost competitive, one has to always look at the various methods of waste elimination and SMED is one of them.

Innovation in the process in dailiy life starts from home, said Mr. P.B. Kulkarni , Vice President, DJR Deleux Bearings Lt. in his address at the valedictory session. Elimination of waste and increase productvity is the same thing, he added. Mr. Kulkarni gave away the certificates of participation to the SMED teams and the trophies to the winning teams :

Position Name of the Company 1st Lucas –TVS Ltd. 2nd Bosch Ltd. 3rd Fairfeild Atlas Ltd.

The winners were selected by a panel of eminent Jury members that include Mr. Vijay Kumar Gokhale from Mahindra & Mahindra, Mr. Rahul Daga from Force Motors and Mr. Parag Auty from Tata Motors.

One Day Training Programme on FMEA Pune: February 26, 2011

Continuing its efforts to build competency, one day training programmed on Failure Mode Effect Analysis (FMEA) was organized in the region. The objective was to provide an opportunity to the ACMA members to train their personnel on various aspects of FEMA. The content of the training

programme include Types & FMEA applicability, Who initiates FMEA, who acts on AMES, Link between DFMEA, PFMEA and Control plans, Flow chart, block or boundary diagrams, Methodology & Risk assessment using recommended formats etc.

Mr. Vinay Kelkar - an ISO lead Assessor with over 30 years of experience in the field of manufacturing, quality, materials in various organizations related to Automotive Industry was the Faculty for the programme.

Workshop on Workplace Improvement through Team Building Nashik: March 9, 2011

It is the work force who actually performs and produces. Therefore it is important to enhance motivation of employees through team building which results in Best utilization of Key Assets (5M) of organization Man, Machine, Method, Material, Money. With this objective a workshop on Workplace Improvement through Team Building was organized in Nashik. The Workshop was focused on to develop the thinking abilities of employee for organizational benefit.

Training Programme on Advance 5S Pune: March 23, 2011

In order to provide insight of the next level of 5S, ACMA (WR) organized one-day training programme on Advance 5 "S" Methodology for Efficient Work place management. The one day training programme provided opportunity to the membership to train their personnel on the next level of 5S. The Course Content include Overview of 5 "S" Methodology, Significance of Efficient Work place management, Steps for Implementing Advance 5 “S”, Check-list Audit and Audit Criteria, 5 "S" as Pillar of Kaizen, TPM & JIT, Hurdles in 5 “S” Success etc. Mr. Harcharan Singh, Principal Technical Consultant and Industrial Trainer, was the faculty.


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NEW MEMBERS IN ACMA FOLDGreenley Hi-Tech Engineers Pvt. Ltd.C-82, 2nd Phase, Industrial Area, Adityapur, Jamshedpur- 832109Products Manufactured : Stub axles, brackets, housings, cylinder heads, and KnucklesQuality Certification : ISO/TS 16949:2009 by IATFSSI

Deltronix India Ltd.E-3, Sector-59, Noida- 201301Products Manufactured : High tension cords, canister plastic, molded and welded parts like vaccum accumulated, radiator, expansion tank, power steering reservoir, rubber ignition automotive partsQuality Certification : TS 16949:2009 by ULDQS

NGK Spark Plugs (India) Pvt. Ltd.123A, Sector-6, HSIIDC Growth Centre BawalRewari, Haryana-123501Products Manufactured : Auto spark plugs and auto sensorsQuality Certification : ISO 14001:2004 by American Systems Registrar

Innoventive Industries Ltd.Gat No. 56/3,4,5, Pimpale Jagtap, Tal-Shirur, Dist-Pune-412208Products Manufactured : Swing arm, center stand, handle bar, sub assembly parts, stabilizer shaft, stabilizer bar, tie rods & drag links, and exhaust tubes Quality Certification : ISO/TS 16949:2002 by IATF

Brose India Automotive Systems Pvt. Ltd.Survey No. 255, Hissa No. 1/8, Vill-Hinjewadi, Tal-Mulshi, Pune- 411057

Associate Membership

Product / Services : Package studies & design, new concepts or design modifications, CAD modelling of Complex parts, Electronic hardware design & analysis, software development and software testing

Tata Autocomp Systems Ltd. (Interiors and Plastic Division)TACO House, Damle Path Off Law College Road, Pune- 411004

The name of Enkei Castalloy Ltd. has been changed to Alicon Castalloy Limited

Mr. Shvetal Diwanji, Sr. GM-Group Marketing, Corp. Comm. & Sustainability, Tata Autocomp Systems Ltd. (Interiors and Plastic Division)

Mr. Piyush I. Tamboli, Vice Chairman & Managing Director, Investment & Precision Castings Ltd.Mr. Deep Kapuria, Chairman, Hi-Tech Gears Ltd.Mr. Ranjot Singh, Managing Director, Emdet Jamshedpur Pvt. Ltd.Mr. Nityanand S. Shenoy, President & Managing Director, PRS Permacel Pvt. Ltd.Mr. Hari Das Nair, Vice President – Human Resources, Jay Bharat Maruti Ltd.

CHANGE IN DETAILSChange in Contact Details

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Napino Auto & Electronics Ltd. has been conferred the Super Achievers Award in the Economic Times India Manufacturing Excellence Awards in partnership with Frost& Sullivan. We were also presented the Consistency Award forreceiving the 4th Platinum Award in as many times that we have participated. I am attaching a picture of the Awards along with the list of Award Winners for the year 2010.

At the 39th Meeting of National Council for Vocational Training (NCVT) at National Agricultural Science Centre, New Delhi, Bosch Limited, Bangalore was Awarded Certificate of Honour and President's Trophy for having won the All India Best Establishment Award in the 84th All India Competition for Apprentices held during May 2010. Mr. Hegde S M, Vice President (Commercial) and Mr. Aswathappa C M, Senior Manager (Trg. & Dev.) received the trophy and certificate from Shri. Mallikarjun Kharge, Honorable Minister for Labour & Employment in the presence of Shri Sharda Prasad, IAS, Director General & Joint Secretary, Ministry of Labour & Employment. This is the 40th time President’s trophy won by Bosch Vocational Centre, Bangalore.

The President's Trophy & Certificate of Honour was given by Shri. Mallikarjuna Karge,

Honorable Minister for Labour & Employment. GoI.


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ACMA-YOUNG BUSINESS

LEADERS' FORUM (YBLF)

A generational transition is quietly taking place concurrently, in the substantially family-owned and family-managed auto component industry in India. For the young, second-generation entrepreneurs, the high growth opportunity is adrenalin. The challenges are daunting, but there is strong determination to win. It is this group of “Just do it” generation that constitutes the YBLF. ACMA's response to the unprecedented change in the competitive scenario, the growth opportunity and a generational change in the industry, was the creation of the forum in 2003 for Young Business Leaders where they could interact, exchange ideas, meet with Thought Leaders, visit industrial units, make friends and “live a life”, as they prepare to takeover the management of their units.It has been some time since ACMA-YBLF began, an initiative that is now widely recognised in the Industry. In this time, the Forum has had many Quality Sessions, both National & International.YBLF Membership is over 150 across India. The members share and learn together, to develop the business confidence and acquire the leadership skills required to face the emerging challenges in our industry. The companies represent are existing members of ACMA and this is one eligibility criteria for being an ACMA-YBLF member.What started as an “idea to network”, in our auto component industry, is rapidly turning into a unique movement, where we are witnessing the development of potential leadership, through an organised structure: the Young Business Leader Forum (YBLF).In this exciting journey, YBLF gives the most important opportunity - to form bonds of friendship, which can be cherished for a lifetime.

Please send-in your details at [email protected] invite you to please join us!

YOUNG BUSINESS LEADERS' FORUMYOUNG BUSINESS LEADERS' FORUM“Leadership & Learning are indispensible to each other” J.F. Kennedy

Are You Accessing ACMA Website?Your one point Quick & Easy Information centre on Indian Auto Industry www.acmainfo.com

www.acmainfo.com has been designed and developed for the use by ACMA members, keeping in mind the needs of the members in terms of information, quick and effective communication between the members and the Secretariat and also between the members themselves. The objective of the website is to achieve a streamlined 2-way, fast, communication between ACMA, its members and between the members themselves, to provide “value added services” to the membership. Members please do use the Website extensively and check the Circulars, Monthly Flash Reports, ACMA Library of Reports & Documents and International enquiries pages, ACMA Newsletters, Message Forum, at least once a day to keep yourself abreast of what’s happening in the industry. You may also like to use the search document option in the members’ page of the website to search for documents and reports. Incase you have not registered (open to ACMA members only) yet please register yourself for accessing the ACMA website www.acmainfo.com. We shall grant you access as soon as we receive your registration.For any clarification, please contact — Mr Niladri Mallick, Director or Mr Vikram Saigal, Executive Officer.