aftermarket - december 2011

I N D I A ’ S F I R S T M A G A Z I N E F O R T H E A U T O M O T I V E A F T E R M A R K E T

Vol. 1 No. 6 December 2011 68 Pages `50

Brought to you by Auto Monitor

EXTRA MILEAdvaith Hyundai

CUTTING EDGEBosch Automotive Aftermarket

INTERVIEWR Srivatchan, President,

TVS Automobile Solutions


Drive Drive the waythe wayAshok Leyland’s organised

driver training to re-route careers Ashok Leyland’s organised

driver training to re-route careers

DECEMBER 2011 AFTERMARKET 5

DESPITE the sales volumes of passenger cars and commercial vehicles being inconsistent for

some time, the expectations of the end consumers of all the vehicle segments are snowballing.

With every new entrant—read MNCs—entering the market, the aspirations of the consumers

are growing by leaps and bounds in a way that it becomes an ever-shifting goalpost, when it

comes to dealerships and aftersales service support. While the customers want the sales points

and service outlets closer to their homes, the challenge for the dealership community is to

cater to the emerging requirements by opening up more sales, service and spares or 3S outlets

in multiple locations. However, the challenge is increasingly becoming severe with the soaring

cost of finances, real estate and manpower costs and the availability of workforce per se.

A recent study shows that potential customers of passenger cars continue to be more

demanding from dealerships. It further stated that less than half of the customers are willing

to travel about 15 km to purchase a car. Around 40 percent of the respondents are not ready

to travel more than ten km to make a purchase. The rest expect the dealerships as close as

five km from their residential colonies. Is it possible for the dealers to manage the emerging

demands with the ever-thinning margins?

Secondly, when the going is good, the dealers are not getting adequate stocks though the

payments towards the same have been made well in advance. However, during the lean sales

period, the dealerships are bombarded with stocks to shore up monthly sales numbers.

The digital and online mania is catching up with the consumers in purchasing vehicles

too. Though there is still a long way to go before potential buyers hit ‘enter’ to seal the

deal, it is necessary to look at what has happened to the travel agencies. It is crucial to have

new thinking amongst the vehicle manufacturers and the dealers to address the changing

consumers’ requirements.

Wishing you much pleasure reading. Do send us your feedback.

DigitAlly

T. Murrali [email protected]

EDITORIAL

7 DECEMBER 2011 AFTERMARKET

NEWS

IN CONVERSATION

SPECIAL REPORT CUTTING EDGE

COVER STORY

CONTENTS

10 New fleet of driving schools to shape next-gen learners

12 Atul Auto to expand its product portfolio

14 Comstar focuses on Indian avenues

18 Leyland Deere loads more punch in aftersales service

22 Suprajit Engineering evaluates new products 26 LGB to introduce silent, lighter chains

34 Marc Nassif, MD, Renault India says that customer satisfaction will take priority while setting up sales & service network

24 Seventh Auto Summit to promote international collaboration

33 Bosch Automotive Aftermarket India inaugurates Delhi Training Centre




12

18 22

29

34

24 33

29 Ashok Leyland takes initiative in driver training Ashok Leyland has set up a Driver Training Institute near Salem to provide more trained drivers to the system and impart dignity to the profession

I N D I A ’ S F I R S T M A G A Z I N E F O R T H E A U T O M O T I V E A F T E R M A R K E T

Vol. 1 No. 6 December 2011 68 Pages `50


EXTRA MILEAdvaith Hyundai

CUTTING EDGEBosch Automotive Aftermarket

INTERVIEWR Srivatchan, President,

TVS Automobile Solutions





Cover DesignMahesh Talkar

14


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10

NEWS

AFTERMARKET DECEMBER 2011

MARUTI Suzuki India (MSI) is

planning to double its driving schools

to over 400 in the next couple of

years to train more people about road

safety. Currently, the company has

six Inst itutes of Driving and Traffi c

Research (IDTR) and 192 Maruti

driving schools that train learners

about road safety.

In the last decade, MSI has

trained more than ten lakh peo-

ple and out of these, fi ve lakh people

have been trained under its fl agship

programme—National Road Safety

Mission (NRSM), which st arted in

December 2008.

Managing Executive Offi cer

(Marketing and Sales), Maruti

Suzuki India, Mayank Pareek said,

“So far, we have trained over ten lakh

people and now we are targeting to

double the network of Maruti driv-

ing schools to 400 in the next two to

three years. India loses close to about

`100,000 crore every year in road

accidents and in terms of fatalities,

around 160,000 lives are lost annually

in road accidents. As the automobile

sect or continues to grow, there is a

need to bring in high quality training

inst itutes, which help inst itutionalise

high ‘quality training’ on road safety,”

he added.

Maruti Suzuki has been working

on road safety since 2000. But it was

only in 2008 that the company gave

a formal st ruct ure to its initiatives

on road safety through its fl ag-

ship National Road Safety Mission

(NRSM) programme. Over the last

decade, Maruti Suzuki has developed

two successful forms of driver training

infrast ruct ure: One is in association

with st ate governments (public-private

partnership model) and the other is in

association with its dealers.

To strengthen its road safety ini-

tiatives, the company recently, added

another interesting format in the

form of ‘Road Safety Knowledge

Centre’, in partnership with the

Gurgaon police. This new platform

is aimed at enhancing traff ic edu-

cation and inculcating safe driving

habits for commuters of Gurgaon. In

addition to existing driving train-

ing modules, the centre has been

equipped to offer specialised training

to traff ic violators.

IDTRs offers superior infrastruc-

ture in terms of training quality,

tracks, simulators and modules as

per international norms. The two

IDTRs have trained around 700,000

people, predominantly commercial

drivers. In addition to Delhi, Maruti

Suzuki now has IDTRs at Vadodara

(Gujarat), Dehradun (Uttarakhand),

Rohtak and Bahadurgarh in

Haryana. In addition to driver train-

ing, the Vadodara IDTR offers skill

training to tribal youths thereby

strengthening employability pros-

pects of learners. Several state

governments have shown interest

in setting up similar facilities with

Maruti Suzuki. �

Our Bureau

New fl eet of driving schoolsto shape next-gen learners

India loses close to about `100,000 crore

every year in road accidents and in terms

of fatalities, around 160,000 lives are lost

annually in road accidents. There is a need to bring in high quality training institutes, which help institutionalise high

‘quality training’ on road safety

Bosch Limited, Automotive Aftermarket, P.B. No. 3000, Hosur Road, Adugodi, Bengaluru - 560 030. Ph.: (080) 2299 9228. Fax: (080) 2299 9796. www.boschindia.com

�a�es �f�ces� Ahmedabad� Ph.: (079) 6614 2200 – 08. Ben�a�uru� Ph.: (080) 2213 2081/ 2227 7653/ 2227 9672. Bhubaneswar� Ph.: (0651) 223 2801. �handi�arh� Ph.: (0172) 263 8207. �hennai� Ph.: (044) 2815 5815/ 2815 3916. e�hi� Ph.: (011) 2334 8260/ 61. rnaku�am� Ph.: (0484) 280 5601. �ha�iabad� Ph.: (011) 4316 6145. �uwahati� Ph.:(0361) 213 1647/ 648. ub�i� Ph.: (080) 2223 7056. �ndore� Ph.: (0731) 425 5010. �ai�ur� Ph.: (0141) 238 7048. �o�kata� Ph.: (033) 2217 4221/ 2226 5360/ 2217 6739. Lucknow� Ph.: (0522) 326 4409/ 320 8474/ 75. �adurai� Ph.: (044)2815 5815/ 2815 3916. �umbai� Ph.: (022) 2493 2071. �a��ur� Ph.: (0712) 268 1738. �anchku�a� Ph.: (0172) 458 7735. �atna� Ph.: (0612) 645 0685. �un�ab� Ph.: (0172) 458 7708. �une� Ph.: (020) 6725 4769. �ai�ur� Ph.: (0771) 402 6333/ 444. �anchi� Ph.: (0651) 236 1152. �a�kot� Ph.: (0281) 246 1571. �ecunderabad� Ph.: (040) 2799 0366. �i�a�awada� Ph.: (040) 2799 0266/ 0308.

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No car is complete without Bosch.

12 AFTERMARKET DECEMBER 2011

NEWS

THE three-wheeler manufact urer

Atul Auto based in Rajkot, is set to

increase the number of dealerships

across the nation. From its current

115, it wants to increase the number

to 140. Th is plan comes as a part of

a larger plan under which, the `300

crore company plans to touch a turn-

over of `1,000 crore in three years.

It hopes to achieve this huge leap

by expanding its product portfolio,

exploring export opportunities, enter-

ing new geographical regions within

the national boundaries and also a few

allied business in the same sect or.

In India, the company has pres-

Shambhavi Anand

Atul Autoto expand its dealership

network, product portfolio

The shopfloor


NEWS


ence in 15 st ates including Gujarat,

Rajast han, Bihar, Orissa, Parts of

Maharashtra, Haryana, Punjab,

Jammu and Kashmir among others.

It has just entered the market in

Assam. Th e south Indian market is

handled from Maharashtra. It st art-

ed operations in Madhya Pradesh in

Oct ober 2011.

According to Chairman and

Managing Direct or, Atul Auto,

Jayantibhai J Chandra, “We want to

have st rong presence throughout the

nations like we have in Gujarat and

Rajast han.” Th e company is also plan-

ning to venture into a smaller size of

three-wheeler and a four-wheeler that

will be in the one-tonne capacity in the

class of Maxximo and Ace. “We manu-

fact ure vehicles for common people,

both in CNG and diesel range. Our

new product s will be on the similar

line,” he added. It manufact ures front

engine of 500 kg body capacity known

as Shakti and Gem, which was st arted

two years ago has a rear engine.

Th e product , which is in the nas-

cent st age of development, is being

developed in the in-house research

and development centre of the com-

pany based at Pune, which has test ing

facilities for protos and employs

around 50 people.

It is also planning to set up a new

plant. Th e land for putting up the

plant in Ahmedabad has already been

acquired and the work will commence

soon. Th ey will be putting in an invest -

ment of `150-200 crore. Th e new

three-wheeler and the four-wheeler will

be manufact ured in the new plant. Th e

capacity of its current plant is 24,000

units per annum. Th e company is

increasing its capacity by increasing the

number of shift to two in the vehicle

assembling side and three in the paint

shop side.

In line with its plan of touching

the turnover target of `1,000 crore, it

is also focusing on exports. Currently,

the company exports its passenger as

well as cargo vehicles to Bangladesh,

Kenya and Sri Lanka, where it is in

the seeding st age. It also plans to

export to other countries once it has

created a hold on the current export

markets. Atul is also exploring to

have manufact uring facilities

in Bangladesh. �

Atul Auto’s Rajkot facility

Jayantibhai J Chandra, Managing Direct or and

Chairman, Atul Auto

14

NEWS


AUTO elect ric part manufact urer,

Comst ar Automotive Technologies is

planning to enter automotive after-

market business within a year. Th e

company currently exports 90 percent

of its product ion to Japan, Europe,

North America, South Africa, Brazil,

Canada, Philippines, Th ailand and

China while it will also supply to

OEMs and aftermarket in India.

In a recent interact ion with

Aftermarket, Direct or and Chief

Financial Offi cer, Comst ar Automotive

Technologies, Sat Mohan Gupta said,

“We have st arted working on Indian

aftermarket operations, which is at the

st arting st age of the launch”.

Elaborating on the st rategy for after-

market operations, Gupta st ated that the

company is looking for a limited number

of dealers with fi nancially st rong back-

ground and with good underst anding

of aftermarket business, preferably with

their own network to adequately cover

the bigger areas. “Currently we are look-

ing at around 50-55 dealers in the fi rst

phase,” he said.

Currently, the company is supply-

ing st arter motor and alternators to

Ford, Tata Motors, Jaguar, Land Rover,

Volvo, Ast on Martin, Nissan, Ashok

Leyland and Mazda in the national

and international markets. It has st art-

ed working aggressively with Indian

OEMs to focus on the Indian market

and is expect ing a gradual growth.

Th e company aims to improve its

two key off erings—st arters and alter-

nators. Th e company is also looking at

making its motors compact and elimi-

nating wast e materials. To make the

components lighter, Comst ar is opting

for alternate materials like aluminium to

reduce the component weight.

Th e second line of improvement is

revising the cost st ruct ure of the proc-

ess. Weight reduct ion process may

not always result in reduct ion of cost s.

Lighter materials like aluminium are

more expensive. Th e company fore-

sees the need to focus on innovation

and product development and catch

up with technology. It develops and

designs all its product s in-house in

Chennai. It has recently setup a test -

ing facility and invest ed in enhancing

its manufact uring facilities. It is in the

process of expanding the capacity for

st arter motors as its already utilising 80

percent of the exist ing capacity. It has

spent around `15 crore for the purpose.

Comst ar also has other ongoing

developments round the corner. “We

are also working to support the OEMs

on newer technologies like improving

the effi ciency of vehicles—for inst ance,

enhancing mileage and reducing car-

bon content,” st ated Gupta.

Th e company has exported more

than 60,000 units of st op-st art syst em

for the past fi ve months. However, the

challenge is to supply the product in

the domest ic market. “We could notch

up a turnover of `300 crore in the last

fi scal and are looking at 20 percent

growth in the current fi scal and a major

presence in the domest ic market,” he

added. It is also working on procuring

orders from new OEMs in the future.

Gupta revealed that it is working with

Indian, Chinese, European and North

American OEMs, although it would

take a while before the results would

materialise. Th e company “wants to

consolidate and develop more product s

like st arters and alternators.” He con-

cluded, “We are hoping to cross `500

crore turnover by 2013.” �

Akmal Rahman B

Comstar renews focus on

local avenues

The Comstar plant


NEWS

IMPERIAL Motor Stores, a Mumbai

based spare parts dist ributor, is tar-

geting to maintain its growth rate of

around 30 to 35 percent this fi scal and

is looking to grow its brand portfolio in

the aftermarket business. It is currently

a leading dist ributor for around 14 dif-

ferent auto component manufact urers

in the aftermarket.

“We are in the process of drawing

up a business plan for enhancing our

product range and Stock Keeping Units

(SKUs) for our network dealers. Such

an initiative will help raise our profi le

as a spare parts dist ributor and we are

also evaluating the feasibility of retail-

ing spare parts for select brands,” said

Partner, Imperial Motor Stores, Amit

Sangharaska. He added that though

margins on selling OEM certifi ed parts

are not necessarily better than other

parts, being enrolled as an OE certifi ed

spare parts dist ributor lends credibility

to the dist ributor.

Imperial has been in the automobile

spare parts dist ribution business for

the last fi ve decades and has an exten-

sive dist ribution network for around

fourteen other auto component brands.

It gets around 50 to 55 percent of its

turnover from selling Tata Motors

genuine parts. It notched up

a turnover of `55 crore in the last fi s-

cal and is looking to achieve a growth

of 30 to 35 percent this fi scal.

Currently, its focus is on four-wheel-

er passenger vehicle segment. It has

been anointed as a dist ributor for Tata

Motors Original Parts (TOP) for

Maharashtra region.

A spare parts dist ributor is one

level above a spare parts dealer in the

aftermarket. A dist ributor typically

has agreements with multiple Tier I

and II auto components suppliers for

a given geographical location and sets

up and services/refurbishes the chan-

nel partners. It could also be a direct

dealer for select parts or SKU in cases

where dealers are unable or unwill-

ing to sell the said SKUs. Dist ributors

play a key role in penetration of the

aftermarket for suppliers as well as

OEMs as setting up an exclusive or

non-exclusive dealership network may

not be a viable preposition for every

auto component supplier. Moreover,

the auto component manufact urer can

rely upon the dist ributor for building

the network and maintaining the rela-

tionship as well as refurbishments as

suitable. According to market sourc-

es, Tata Motors is looking to have a

concept of dedicated retail counters

in each town across the country. A

dealer needs to dedicate around 150

to 200 sq feet in exist ing set up for

Tata Motors Original Parts (TOP), if

the concerned dealer does not opt for

exclusive ‘TOP’ dealership. Th e com-

pany has promulgated TOP brand

for its passenger vehicle spare parts in

the aftermarket. �

Our Bureau

Imperial Motors to strengthen command with new strategies, products

Imperial is in the process of drawing up plans for en-

hancing its product range & SKUs for network dealers. Such an initiative will help raise its pro� le as a spare parts distributor. It is also evaluating the feasibility

of retailing spare parts for select brands

16

NEWS


THE Chennai-based German

concrete const ruct ion equipment man-

ufact urer, Schwing Stetter launched

‘Nimo’, a mini concrete mixer with

a capacity of three cubic metre.

Currently, the company has a higher

capacity of concrete mixer of six cubic

metre and is planning to sell around

250 Nimos in 2012.

Managing Direct or, Schwing

Stetter India, Anand Sundaresan said,

“Nimo is expect ed to set a new trend

in residential const ruct ion indust ry

taking the benefi ts in view of the size.

Currently, ready mix concrete has a

share of less than ten percent in the

country and is likely to gain greater

momentum with the indust ry looking

towards a boom.”

Th e Nimo, measuring 6,500 mm in

length, 2,400 mm in width and 3,100

mm in height, has been designed to

cater to the needs of small service

centres, garages and residential con-

st ruct ion indust ry in the country. One

of the major advantages of Nimo is

that unlike the case of larger tran-

sit mixers, which are not allowed to

ply in the city during working hours,

this new model can be used any-

time within or outside the city limits.

Moreover, the lighter weight of the

model also means that it is ideally

suited for manoeuvring through nar-

row lanes as well as softer terrains.

“It is indeed promising to see India

emerging as a major manufact uring

hub for the const ruct ion equipment

indust ry. Th is indust ry is expect -

ed to grow to a size of $6.5 billion

by the year 2014 as reported by the

Confederation of Indian Indust ries

(CII),” Sundaresan said.

Nimo has been designed keeping in

mind the increased infrast ruct ure and

real est ate development pace in India.

Th e new mini mobile concrete mixer is

ideally suited for beating problems such

as traffi c congest ion and deliver con-

crete on time at project sites.

Speaking about the new product ,

Chief Operating Offi cer, Schwing

Stetter India, VG Sakthikumar said,

“Th e launch of Nimo underlines a land-

mark event for Schwing Stetter. It will

bring about a revolution in the const ruc-

tion landscape with its small size, as it

will help negotiate traffi c during the day

and noise pollution during the nights,

and will accelerate the execution and

delivery of time bound project s.” �

Our Bureau

Mini concrete mixer ‘Nimo’ to revolutionise construction landscape

Imperial is in the process of drawing up plans for en-

hancing its product range & SKUs for our network

dealers. Such an initiative will help raise its pro� le as a spare parts distributor. It is also evaluating the feasibil-ity of retailing spare parts

for select brands

Phot

ogra

ph: B

harg

av T

S

NEWS


HINDUSTAN Motors-Mitsubishi

inaugurated BMS Motors in Ranigunj,

Secunderabad, Andhra Pradesh, raising

its dealership count in the country to 41

and its second dealership in the st ate.

BMS Motors already operates a dealer-

ship in Vijaywada in Andhra Pradesh.

Located near Tank Bund-Hussain

Sagar Lake, the showroom, spread over

3,600 sq ft, can display four vehicles

and is manned by half a dozen trained

personnel. Th e service st ation covers a

larger area of 7,800 sq ft and has seven

service bays including body shop. With

its 20 qualifi ed technical employees it

can take care of 10 vehicles in a day.

HM-Mitsubishi has launched other

product s in the Indian market including

the Pajero, Cedia, Montero, Outlander

and Evo X. Hindust an Motors’ manufac-

turing facilities are situated in Uttarpara

(West Bengal), Pithampur (Madhya

Pradesh) and Tiruvallur (Tamil Nadu). It

currently has 48 cust omer touch

points across India including key cit-

ies like Chennai, Mumbai, Bengaluru,

Delhi, Ahmedabad, Pune, Hyderabad

and Kolkata. �

Our Bureau

BMSMotorsdealership

BMS Motors during inauguration

kicked off byHM-Mitsubishi


NEWS

REALISING the importance of the

aftersales service in the const ruct ion

equipment indust ry, Ashok Leyland

John Deere Const ruct ion Equipment

(ALJDCE) has had several dry runs

and trials not only on the product , but

also on its new concept, which has been

evolved to address cust omers’ aftersales

service requirements. Th is exercise has

been done for the JV company’s debu-

tante product —435 backhoe loader,

launched recently, and will compete

in the market having a size of about

20,000 units annually.

One of the unique sales propositions

that the company claims is its initia-

tive called CAREi —an acronym for

lower cost of operation minimisation,

availability of machines, reliability of

the equipment, easy-to-do business and

intelligence evolved over a period of

time. Th e key initiative in CAREi

is the commitment the company gives

to the cust omers to rest ore the

machine within 24 hours of

regist ering the complaint.

Company sources told Auto Monitor

that they tried a mock drill of regist er-

ing a cust omer complaint in a temple

town—Palani, about 430 km south of

Chennai to check the time taken by

the company to address a complaint.

Th ey found that the exercise could be

completed in less than 20 hours from

the time of receipt of the complaint

call, including the shipment of the

required spare parts. Th e spare parts

were shipped from its central ware-

Our Bureau

Leyland Deere loads more punch in aftersales service


NEWS

house in Gummidipoondi, about 45

km north of Chennai, where the com-

pany has its manufact uring facility.

Similarly, it tried this exercise success-

fully with a cust omer in Bidar, situated

in the north-west ern part of Karnataka

and about 500 km away from Chennai.

After the exercise proved to be suc-

cessful, the company launched this

initiative, sources added.

Recently, ALJDCE has launched

its fi rst product , 435 backhoe loader in

Chennai. Manufact ured by an equal

joint venture between Ashok Leyland

and John Deere, the product is marketed

under the brand Leyland Deere. John

Deere brings in its advance technical

know-how and experience in global con-

st ruct ion equipment space, while Ashok

Leyland lends its indepth knowledge of

the Indian market, expertise in manu-

fact uring, sourcing and dist ribution, to

this st rategic partnership.

Th e company claims that the prod-

uct has been designed to transform the

nature of the const ruct ion equipment

business in India as well as rede-

fi ne the way const ruct ion equipment

product s are perceived and used. Th e

product has been manufact ured to the

address the critical considerations of

lower operating cost , higher produc-

tivity and greater uptime. Powered

by Ashok Leyland’s H-series engine,

the 435 backhoe loader comes with

power shift transmission, larger cabin

with better visibility and roll over

protect ion st ruct ure and falling object

protect ion syst em—key elements for

the operator safety. Besides, the cabin

has three-layer roof to insulate from

heat. It also has an elect ronic monitor-

ing syst em, higher breakout forces and

greater dig depths.

Th e company has invest ed around

`200 crore towards product develop-

ment and const ruct ion of the plant

having a capacity of 10,000 units. It

is planning to introduce two more

product s—the fi rst one being the

wheel-loader to be introduced in 2013.

It hopes to reach full capacity by 2016

with the backhoe loader accounting for

about 90 percent of the sales.

Th e CAREi programme will also

include an extended warranty of a

year after the fi rst year of warranty,

committed rest oration of time for the

equipment and regular and periodic

visits by service engineers during war-

ranty periods and an insurance over of

`two lakh for cust omers operator.

When asked how it was possible

to commit such a service to the cus-

tomers, Chairman, ALJDCE, Dr V

Sumantran said, “We leverage the bus

services to ship spare parts as the buses

run overnight and reach the dest ina-

tion the next day. Our dealers have

also introduced service vans and tech-

nicians with two-wheelers to reach the

cust omers’ place at the earliest possible

time.” Interest ingly, aftersales serv-

ice has been the key in const ruct ion

equipment segment and many play-

ers did not get to the next level due to

poor after sales network.

Th e equipment is initially launched

in the southern st ates, before being

rolled out nationally. Th e JV company

has also announced TVS & Sons as

the dealer for Tamil Nadu and Kerala.

President (dealership line of business),

TVS & Sons, N Krishnamoorthy

said that the company will have fi ve

Tier I dealerships and seven Tier II

dealerships. When asked about the

st rategy, he said that the former will

have more product s displayed and

will be in most ly in big cities, while

the latter will have one product on

display manned by more service engi-

neers. Th is is to support the cust omers’

requirements of aftersales service, since

the equipment is most ly operating in

the rural areas. �

John Deere brings its ad-vance technical experience

in global construction equip-ment, while ALL lends its

indepth knowledge of Indian market & expertise in manu-

facturing & distribution to this strategic partnership

Cabin space

22

NEWS


SUPRAJIT is evaluating new compo-

nents and assemblies and is also looking

to increase its range of cables and

moulded product s for the aftermarket.

Th e company is renewing its focus on

the domest ic aftermarket segment, cur-

rently growing at a double digit rate for

elect romechanical product s.

Th e company derives around fi ve to

seven percent of its total turnover from

the aftermarket segment and is looking

to increase this share to around 10 to 12

percent over the next couple of years. It

is also looking to expand its footprint in

the international markets for OEM and

replacement demands.

Th e company has set up two

dedicated facilities to cater to the after-

market segment as compared to the

conventional pract ice of supplying to

Abhishek Parekh

EXTRA MILE

xxxxxxxxxx

Suprajit Engineering evaluates new products

K Ajith Kumar Rai, Chairman & MD, Suprajit Engineering


NEWS

aftermarket dealers from common pro-

duct ion lines catering to all cust omers.

“Th ere is a tendency to cut down on

supplies to the aftermarket segment

when the OEM demand goes up, if a

company has common product ion lines

for all market segments. We are hop-

ing to avoid this scenario by having

dedicated aftermarket product ion and

marketing so we can grow our market-

share,” said Chairman & Managing

Direct or, Suprajit Engineering, K Ajith

Kumar Rai.

Typically, the cust omer in the after-

market moves on to the next available

replacement if the original product

from a supplier is not available with the

aftermarket dealer. Th is can be a major

setback for any player hoping to est ab-

lish a foothold or grow its marketshare

in the automotive replacement market.

Th e company has est ablished a major

presence in the aftermarket segment

through 225 odd dist ributors covering

all major towns and cities.

Goods and Services Tax (GST) is

one of the critical legislations, accord-

ing to Rai, that can lead to unorganised

or peripheral players moving out of

the aftermarket and helping reliable

OEM suppliers like Suprajit win cus-

tomer confi dence in the aftermarket.

“Many suppliers evade paying taxes in

the aftermarket and can do so due to tax

loopholes. However, if GST is eff ect ive

in closing these loopholes, it is likely to

be a positive development for organised

suppliers in the aftermarket, not to forget

the logist ical advantage that GST regime

can best ow on any supplier,” said Rai.

Th e company is a major supplier of

clutch cables for the automotive sect or

and has a major presence in the two, three

and four-wheeler segment. It will have 14

facilities across the country by middle of

next year and its annual manufact uring

capacity for cables is likely to touch around

120 million units and further to 150 mil-

lion units by the end of next calendar year.

It is aiming to be among the top fi ve cable

manufact urers globally by as early as next

year in terms of value and volume. �

Suprajit Engineering’s annual manufacturing

capacity for cables is likely to touch

around 120 million units and further to

150 million units by the end of next

calendar year. It is aiming to be among the

top � ve cable manufacturers globally

The shopfloor


SPECIAL REPORT

FEDERATION of Automobile

Dealers Associations (FADA) is

gearing up to organising its bien-

nial event— Seventh Auto Summit,

in association with Society of Indian

Automobile Manufact urers (SIAM)

at New Delhi on 9 and 10 January,

2012. Th e event will be coinciding

with Auto Expo scheduled from 7-11

January, 2012. Th e theme of Auto

Summit 2012 is ‘Shifting Gears:

Terrain Ahead” and Anand Mahindra

will be the keynote speaker for the

upcoming summit.

Auto Summit will present an

opportunity for the dealers to meet

the industry leaders and other mem-

bers of auto retail fraternity from

across the country to share expe-

riences and exchange ideas. The

summit will bring together all stake-

holders on a common platform to

Nabeel A Khan

Seventh Auto Summit to promote international collaboration

Imag

e: A

kmal

Rah

man

BIm

age:

Akm

al R

ahm

an B


SPECIAL REPORT

mull and address the current and

emerging challenges for sustained

growth of all players connected with

automotive business.

International PlatformAn important agenda of the summit

is to forge an international alliance by

making an international dealer council

a reality. Th e association has invited a

number of countries to participate in

the summit. “We already have confi r-

mations from seven to eight countries

including the US based NADA and

the current chairman of the American

dealers association has agreed to par-

ticipate in the auto summit. We have

circulated the vision paper to 17 coun-

tries and we look forward to signing

a MoU for forming the international

dealership council,” President, FADA,

Nikunj Sanghi told Aftermarket.

Presently FADA is sharing only

national experiences while the auto

indust ry in other countries is far more

mature than that of India. Th e asso-

ciation feels that there are lots of

knowledge and learning which will

come to Indian dealers when it shares

experiences and pract ices on a global

level. Th ere are a range of expertise that

the international dealers can also earn

from Indian dealers, as this is one of

the fast est growing auto markets in the

world. Th e exposure to the developed

markets will help domest ic dealers to

become more cust omers centric.

Towards VibrancyTh e creation of international council

will help not only in knowledge shar-

ing but also the dealer manufact urer

relationship of the other countries and

this platform will help in learning

from each other’s experiences. Th ere

are manufact urers which are operating

in India and also in other countries;

here they have a diff erent rule from

other countries so the international

council may help in bringing com-

mon and helpful pract ices. FADA

has received participation confi rma-

tion from Italy, Brazil, the UK and

Germany and looking forward to get-

ting confi rmation from China, France

and a lot of other countries.

Th e Auto summit will also aim to

off er exposure to the dealers, which they

otherwise do not have access to, at their

current locations. For the inaugural ses-

sion, the association has invited Deputy

Chairman, Planning Commission, Dr

Montek Singh Ahulwalia and hopes

that the summit would help create

awareness to what is happening to the

auto retail indust ry. Th e indust ry body

will also convey to him about what is

required to be done by the government

to make the auto retail indust ry more

vibrant because the indust ry is not only

the biggest revenue generator for both

the st ate and central government but

also the biggest employment generator.

“If you take average direct employ-

ment of 200 people in each dealership

multiplying it to the 7,000 dealerships

across the country, imagine the kind of

employment off ered by the auto indus-

try. Th is presence is very important for

the auto summit.” Sanghi explained. �

An important agenda of the summit

is to forge an international

alliance by making an international dealer

council a reality. The association has invited a number of countries

to participate in the summit

Nikunj Sanghi, President, FADA


NEWS

LG Balakrishnan & Bros (LGB), the

Coimbatore headquartered component

manufact urer, has designed and devel-

oped a silent chain for two-wheeler and

four-wheeler applications. Currently, it

is supplying silent chains in the after-

market and is soon expect ed to supply

it to vehicle manufact urers as well.

“Today all the cars are equipped

with silent chains inst ead of belt drives,

therefore we see good potential for

silent chains in the future, which is the

futurist ic project of LGB. We believe

that our inhouse R&D is our core

st rength and we have formed techni-

cal alliances with various companies

for better quality services to clients

in India,” said the company’s Deputy

Managing Direct or, Prabakaran P.

LGB recently has bagged an order

from Ashok Leyland (ALL) to supply

transmission parts for its range of vehi-

cles. “We have received the orders from

Ashok Leyland for the fi rst time since

we incepted in 1937, and we will supply

transmission parts next year. We are

gearing ourselves to supply more parts

to them and we will be growing with

them in a big way,” he said.

For the past ten years, the company’s

main focus is on fi ne blanking technol-

ogy and currently, it has 25 presses to

manufact ure 100 tonne to 1,000 tonne.

LGB acquired fi ne blanking technology

for manufact uring chain plates. It fur-

ther extended its fi ne blanking division

as a separate manufact uring sect ion dur-

ing the late 1990s, to cater to the OEMs

demand for fi ne blanked components.

“Fine blanking is our key area and we

have increased our cust omer base and

st rengthened our exist ing cust omers.

Th is will help us grow further and this

year we will be growing by 40 percent in

fi ne blanking alone,” he said.

In fi ne blanking, the company

manufact ures two-wheeler chassis

components and engine components.

For the four-wheeler segment, it man-

ufact ures engine components, brake

components and transmission parts.

Prabakaran also revealed that the

company has st arted supplying trans-

mission parts to ZF and Eaton and will

be supplying the same components to

Daimler next year.

LGB is also supplying sprock-

ets to BMW motorcycles through

Hero Motors and garnered expertise

in supplying components to premium

motorcycles. It is also in talks with

Harley Davidson to supply a few fi ne

blanking parts and expect ed to supply

the same in 2012.

Bhargav TS

A range of components from LGB

LGB technology to silence market with lighter chains

Phot

ogra

ph: B

harg

av T

SPh

otog

raph

: Bha

rgav

TS


NEWS

To manufact ure

lighter compo-

nents, LGB is

taking several

initiatives and

implementing the

same. As a result

of this, the compa-

ny has engineered

and manufact ured

a chain, which is

200 gram lighter

compared to the traditionally manufact ured chain. LGB is

also working towards cutting the st eel content in the chain

to reduce the weight, cost and improve vehicle’s

fuel effi ciency.

When asked about the progress of the China plant,

Prabakaran replied, “We have temporarily post poned the

plan because we thought labour and infrast ruct ure cost

will less compared to India. However, after exploring fur-

ther, we realised that the labour and infrast ruct ure cost is

higher than that of India. Moreover, we didn’t get any spe-

cifi c advantage over India and our cust omers are happy to

procure the product s from here. Th erefore we have brought

back the machineries for the time being,” he said.

Th e manufact urer has earmarked a capex of `100 crore

towards new machineries and expansion of the

exist ing facility.

Currently, it has four plants in Coimbatore and one

each in Pantnagar, Maneser, Tapukar, Ahmedabad,

Pune, Bangalore and Mysore. LGB has dedicated plant in

Coimbatore to make fi ne blanking components. From these

facilities, it produces seven million fi ne blanking parts,

three million chains and three million sprockets per month.

According to Prabakaran, the company is facing severe

problems due to the non-availability of power and increase

in fuel price. It is not able to meet the demands of its cus-

tomers due to insuffi cient power. And the increase in fuel

price aff ect s the logist ic business and hence the company is

looking to inst all additional power back up units in

their facilities.

For the last three years, LGB has been growing by 25

percent and this year, it is expect ing to grow by 30 percent.

In 2010-11, the LGB Group reported a turnover of `700

crore. In addition to automotive chain, which is the fl ag-

ship product of the company under the brand ‘Rolon’, LGB

makes fi ne blanking, sprockets, forged and cold heading

components, V-belts and other chains for textiles, agricul-

ture and conveyors. �

Prabakaran P, Deputy MD, LGB


EVENTS

TAMIL Nadu continues to be a

favoured dest ination for invest ments

not only for the service sect or but also

the manufact uring sect or due to several

fact ors like availability of abundant tal-

ent pool and the infrast ruct ure facilities

including sea, air, rail and road network.

Inspite of a couple of major invest -

ments from the automobile indust ry

going out of Tamil Nadu, the st ate has

yet not lost its sheen. Catalysing growth

to the next level is the fourth edition of

Engineering Expo Chennai, scheduled

from 8-11 December 2011. Th is edi-

tion will further augment the indust rial

act ivities that are synonymous to the

competitive spirit of Engineering Expo

and the st ate as well.

Japan has identifi ed Tamil Nadu as

one of the most potential st ates for its

invest ments recently and towards this,

the Japanese Minist ry of Economy,

Trade and Indust ry (METI) has signed

a bilateral economic co-operation agree-

ment with Tamil Nadu. Th e agreement

is a feather in the cap for the st ate as it

has been identifi ed as a potential invest -

ment dest ination by none other than an

indust rial giant like Japan.

It is est imated that about 240 of the

725 Japanese companies are already in

Tamil Nadu and many more invest ors are

looking at the st ate as an attract ive invest -

ment dest ination. With the Engineering

Expo—organised by Infomedia 18—cel-

ebrating its tenth year of successful

operations this year, primarily by est ab-

lishing itself as a key enabler in propelling

the growth of the manufact uring and

service sect ors, the Chennai edition of the

Expo is shaping up as a

conducive platform in

amalgamating the capa-

bilities of the st ate with

the specifi c needs of the

indust ries.

Countries like Korea,

Japan and Th ailand

have evinced interest

in invest ing in the st ate

particularly close to

the major ports. Tamil

Nadu has a unique dist inct ion of having

three major ports—Chennai, Tuticorin

and Ennore. It also boast s of having

the fi rst corporatised port—Ennore, in

the country.

Th e st ate government, apart from

large indust ries, is also looking at

accelerating growth of Micro, Small

and Medium Enterprises (MSME)

with additional incentives. Tamil

Nadu Small Indust ries Development

Corporation has identifi ed over 2,256

acres in 25 locations to promote

indust rial clust ers for MSME. Th e gov-

ernment is also revamping land pricing

policies to simplify the processes.

CEO, Publishing, Infomedia 18,

Sandeep Khosla st ated, “Th e last three

editions of Engineering Expo has con-

tributed immensely to the engineering

and service indust ries from this part of

the country. ”

The Chennai Advantage With its st rong base in MSME,

Engineering Expo Chennai off ers a

unique advantage, as it becomes the

eye-opener for not only new opportuni-

ties in enhancing the business but also

to augment the exist ing process with

cost eff ect ive technologies. Th ough it is

a common phenomenon, the MSMEs

are the worst aff ect ed due to the rising

cost of fi nance and volatile raw mate-

rial prices. Th ere are options for these

enterprises to become competitive. And

to st ay afl oat, it is necessary to look for

innovative technologies to reduce the

cost of manufact uring while satisfying

the cust omers’ specifi c requirements.

In this scenario, the Engineering Expo

Chennai helps connect not only the

buyer and seller but also the giver and

taker of aff ordable technologies.

More than 250 exhibitors from

diverse engineering and service indus-

tries are expect ed to participate in the

Engineering Expo in Chennai. To be

held in Chennai Trade Centre, which is

about six km from the Chennai airport,

the event will have participants from

several indust rial segments including

machine tools & accessories, hydraulics

& pneumatics, inst rumentation, light

and medium indust ries, automation,

elect rical & elect ronics and process

plant machinery and equipment.

Th e forthcoming event is expect ed to

witness signifi cant growth in terms of

exhibitors as well as visitors. �

The Global Hub: Engineering Expo ChennaiBhargav TS

29 DECEMEBR 2011 AFTERMARKET

COVER STORY




Ashok Lelyand’s Driver Training Institute in Namakkal, near Salem has been instrumental in providing trained drivers to the system and impart dignity to the profession.

30 AFTERMARKET DECEMEBR 2011

COVER STORY

T Murrali

HUMAN resource is an important tool

in every aspect of a business—be it man-

ufact uring or be it service. While the

unemployment problem is severely felt

in the country, there are some segments

where there is enough employment but

shortage of people willing to work. And

the truck drivers segment is a promi-

nent example of such a pocket in the

economy. According to recent reports,

about ten percent of the heavy trucks

are idle for want of drivers. Th is is more

so in some pockets for light commercial

vehicles too. While the issues pertaining

to LCVs are addressed to some extent

by the owners themselves doubling

up as drivers, it is not so in the case of

MHCVs.

Th ough this situation has been bur-

geoning in the recent past , the Chennai

headquartered Ashok Leyland realised

long ago and set up a Driver Training

Inst itute (DTI) in Namakkal, near

Salem, about 350 km southwest of

Chennai. Est ablished about 15 years

ago, the object ive of DTI is prima-

rily to provide more trained drivers to

the syst em so that it helps not only to

increase drivers in terms of volumes but

also qualitatively. Trained drivers are

held in high est eem as they can reduce

the carbon footprint, enhance profi t-

ability, besides reducing the number of

accidents, which causes huge losses to

the country.

On an average, about one lakh peo-

ple are killed in road accidents every

year resulting in a material loss of

`60,000 crore per year. Currently, more

than six lakh MHCVs ply in the coun-

try and the numbers will only go up

with National Highways adding about

30 km per day to the exist ing road

length of about 66,000 km. Besides, the

country has over 1.3 lakh km of st ate

highways and about 3.14 million km of

other roads. It is est imated that close to

80 percent of the accidents are due to

negligence of the driver. If drivers are

properly trained, the loss of lives and

related damages (incluidng damage of

properties and goods) could be mini-

mised. With better roads being setup

and the more powerful trucks being

manufact ured, the challenge to produce

trained drivers grows manifold.

According to a recent st udy, it is nec-

essary to add 1.5 lakh drivers every year

from the year 2015 onwards to meet the

burgeoning demand. However, already

close to ten percent of MHCVs are idle

for want of drivers. If the situation con-

tinues, the demand will skyrocket in

the next fi ve years.

With the government of India

announcing a grant to create quali-

fi ed drivers in its current fi ve year plan,

Ashok Leyland is expanding its service

by leveraging the exist ing opportu-

nities. In addition to Namakkal, the

company currently operates one more

DTI in Burari near Delhi.

Speaking to Aftermarket, Assist ant

General Manager (Sales & Marketing

group), Ashok Leyland, KC

Balasubramanian said the company is

currently working on setting up simi-

lar inst itutes in Kaithal in Haryana.

Th is is the fi rst project under the gov-

ernment of India funding model where

land is given by st ate government while

the funds for const ruct ing the build-

ings and laying tracks are disbursed

by the central government and Ashok

Leyland is contributing the required

equipment and vehicles. Under this

model a society is formed, which will

lay down rules to operate the inst itute.

Th e new centre will be ready soon, he

said.

A similar project is also coming up

in Chatia near Bhubaneshwar on the

K Nallathambi, President of Federation of Tamil

Nadu Lorry Owners’ Association

DECEMEBR 2011 AFTERMARKET 31

COVER STORY

Kolkata highway. Th e company has also

received the sanct ion letter from the

government of Madhya Pradesh to set

up a DTI in Chhindwara near Nagpur.

Th e inst itute will commence opera-

tions by March 2012, he said. Ashok

Leyland has also signed an MoU with

Government of Rajast han to set up a

DTI in Udaipur, which will be opera-

tional by Oct ober 2012. “We have

fi nalised the project in Karnataka,

which will be coming up near the

Bangalore international airport. We are

also in discussion with Punjab, Tamil

Nadu, Meghalaya and Haryana to st art

similar inst itutes,” he said.

In the upcoming project s, the role

of Ashok Leyland will primarily be

in running the inst itute by sharing its

expertise, provide trained manpow-

er and support with all the required

training software. According to the

notifi cation, the society will prescribe

the fee st ruct ure so that the inst itute

can run on ‘no-loss-no-profi t’ basis.

Th e role of the st ate government is to

provide a minimum of 15 acre, get nec-

essary grant from government of India

for const ruct ion of the building and

tracks.

According to Balasubramanian, the

country currently has over 30 lakh driv-

ers (2010 Jan data) including 21 lakh

for MHCV, transporting 3,150 million

tonne per year and 60 million passengers

per day. Loss to GDP due to accidents

has increased from `32,000 crore in

2008 to one lakh crore in 2011. Quoting

the data published by Minist ry of Road

Transport and Highways, he said that

over 80 percent of road accidents happen

due to the drivers’ fault, 17.4 percent due

to bad weather, road blockages and cattle

on road, two percent due to mechanical

defect s, 1.36 percent on pedest rian faults

and 1.32 percent due to bad roads.

Highlighting the fact that about

80 percent of the accidents happen

due to negligence of drivers, he said it

is imperative to train the drivers sys-

tematically to save lives and prevent

accident-related damages.

What are the impediments

for the drivers to be developed?

Balasubramanian replied that fi rst ly

the driver community per se is shrink-

ing as the next generation is not getting

into the profession. Th is is primarily

due to varied options available to the

younger generation. Organised training

to tweak skills of drivers will help in

reducing accidents and enhance overall

effi ciency of driving, road discipline and

fuel effi ciency.

In Namakkal, which is one of the

major truck hubs in the country and

the largest in southern India, 74 people

own more than 100 trucks. Th e place

became the Mecca of trucking due to

const raints like lands unfavourable for

agriculture and lack of scope for indust ri-

alisation. However, things are diff erent

now with people getting lot of oppor-

tunities. Th e President of Federation of

Tamil Nadu Lorry Owners’ Association,

K Nallathambi said that lack of recogni-

tion by the society hampers the process

of the nextgen getting into truck driving.

“Now the situation is such that even if the

fl eet operators are ready to pay `20,000 a

month, as salary in addition to perks, they

are not able to get drivers,” he added.

Th e President of LPG Tanker Lorry

Owners’ Association, Nallusamy shared

the same view. He said that all st ake-

holders must join hands to remove the

roadblocks in driver training. Even if fi ve

to 10 percent of fuel is saved due to bet-

ter driving, it will signifi cantly improve

Different kinds of tracks at DTI in Namakkal

Nallusamy , President, LPG Tanker Lorry

Owners’ Association

32 AFTERMARKET DECEMEBR 2011

COVER STORY

the operating economics since bad driv-

ing habits can not only dest roy the

vehicle but also end up guzzling more

fuel, which is a precious commodity, he

said.

“We are not able to get drivers for

even scheduled loads such as LPG run-

ning in pre-determined roads that are

generally good. At least ten percent of

our fl eet is ideal due to driver short-

age. In fact , we have reworked our

capex plan for this year by reducing the

procurement of new vehicles due to non-

availability of drivers,” Nallusamy said.

Th e fact that every year it is necessary

to add more than a lakh drivers seems

to be unachievable due to several con-

st raints including the low capacity of

driving schools, prohibitive cost s, non-

availability of land and lack of motivation

to take up organised driver training and

enforcements in India. It is est imated

that in addition to land cost it is neces-

sary to invest `16-18 crore to set up a

driver training inst itute. Unless there is

increased involvement of government,

things will not change. Balasubramanian

st ated that the DSTC has been running

with an object ive of upgrading the skill

levels of drivers, re-training for road safe-

ty and fuel savings, upliftment of driver

st atus and extract ing better effi ciency out

of the vehicles.

At Namakkal, Ashok Leyland off ers

about 22 diff erent types of courses in

eight categories—each one designed for

specifi c requirements with the dura-

tion ranging from few hours up to three

months. It also trains motor vehicle

inspect ors and fi re-engine drivers man-

ning fi re st ations at airports. At present,

the centre has 14 diff erent varieties of

vehicles (eight buses and fi ve trucks and

one LH drive) including one with left

hand drive to impart training for those

seeking jobs abroad. It hopes to con-

solidate it to ten varieties and make it

contemporary by introducing U-Truck

and BS4 variants of exist ing range

of vehicles.

Th e inst itute has every possible con-

fi guration of road for the trainees to

experience the diff erent road condi-

tions. Besides, it has a full-fl edged

classroom and a laboratory with cut-

sect ion of major aggregates of the

commercial vehicles including engine,

gearbox and axles. In addition, it

also has components that have been

dest royed on account of bad driving—

to make the trainees underst and the

extent of damage that they can make if

the vehicle is not driven properly.

In order to help Ashok Leyland’s cus-

tomers to get specialised training, DSTC

has appointed 16 fi eld trainers recently,

positioned across the country. “We have

plans to have two fi eld trainers in every

st ate, depending up on vehicle parc with

a maximum 48 trainers. Th e main objec-

tive to improve fuel economy,” he said.

Th e government of Tamil Nadu rec-

ognises DSTC in Namakkal while

the Delhi government recognises the

one at Burari. Interest ingly, the Delhi

govt made it mandatory to undergo a

refresher course to renew HMV license.

Currently, it off ers only retraining for

Delhi Transport Corporation. It is

authorised to conduct a test for 300 driv-

ers every year for Delhi Staff Select ion

Board, who are absorbed in Delhi gov-

ernment service. It is currently planning

to introduce a new driver training con-

cept, which will have 50 persons per

batch, commencing from January. It will

be similar to Namakkal in a year’s time,

he said. Both inst itutes have trained

about four lakh drivers so far.

However, despite the potential to

earn a reasonable salary, the intent of

people to join training inst itutes to learn

driving skills is not encouraging. Th is is

primarily due to initial cost s involved in

training courses. People willing to take

up driving prefer to join the exist ing

driver as an assist ant or cleaner and learn

the skills of driving while earning simul-

taneously or on-the-job. Th ough this

method has been prevalent ever since

trucks exist ed, indust ry experts feel that

it may not be suitable in the future since

the vehicles are becoming tech intensive,

calling for skilled hands to drive them. �

K C Balasubramanian, AGM (Sales & Mktg) &

EN Surendran, Sr Manager (Driver Training),

Ashok Leyland

One of the training sessions


CUTTING EDGECUTTING EDGE

WITH a view to train mechan-

ics, aspiring engineers, technicians,

employees, cust omers for a future-ready

skilled workforce, Bosch Automotive

Aftermarket, supplier of automotive

parts and accessories, diagnost ic and

test equipment and authorised car serv-

ice inaugurated its second Technical

Training Centre in India.

Located in New Delhi, the training

centre has been built with an invest -

ment of `30 million in association

with DEG Germany. Th e training

centre will impart training to aspir-

ing engineers, technicians, employees

and cust omers in the northern region

of the country, enhancing their level

of technical competence on emerging

automotive technology and service to

global st andards.

“We are witnessing a lot of change.

Th e automotive indust ry has gradu-

ated from classic Ambassadors to ABS

induced high performance cars, from

carburettor syst ems to elect ronic fuel

inject ion syst ems and conventional

mechanical braking to elect ronically

controlled breaking.

Emissions norms have become more

st ringent and there is greater focus on

safe and economical driving resulting

in a shift from conventional mechanical

syst ems to modern elect ronic sys-

tems. Th is shift has lead to increased

demand for automotive diagnost ics.

Th e indust ry at present however doesn’t

possess adequate skilled manpower to

cater to this increasing demand,” Vice

President, Automotive Aftermarket,

Bosch, S Muralidharan said.

“It is anticipated that meeting this

demand would require a trained work-

force of 2.5 million technicians and

mechanics by 2025. As indust ry leaders

we are attempting to bridge this gap.

We intend to transform technicians

into knowledge workers by equipping

them with skills and confi dence needed

for automotive service, diagnost ic inter-

rogation and resolution,” he added.

Th e centre has a capacity to train

50 people at a time and off ers 70 spe-

cialised training modules for diff erent

skill sets like car service, elect rical

module service, vehicle maintenance

and syst ems, workshop and test equip-

ment applications, diesel fuel inject ion

equipment among others. It also off ers

specifi c modules for st udents, techni-

cians, cust omers, trainers, new and old

employees, sales and service personnel.

Th e course fee ranges from nothing to

`500 a day. Th e centre can also hold

cust omised courses for its cust omers

depending upon their requirements.

On completion of training, candidates

would be awarded a certifi cate from

Bosch Automotive Aftermarket.

Th is is the second largest training

centre of the company in the country

after Bangalore. It has 11 other centres

spread across the nation which train

around 2000 people every month. “We

want to double the number of trainees

in the next three years and might look

at opening more centres in east ern and

west ern regions,” Muralidharan said.

Th e company may open four more such

centres in the next three years. �

Shambhavi Anand

Bosch Automotive Aftermarket India inaugurates Delhi Training Centre

The inauguration of the Technical Training Centre


IN CONVERSATION

34

So far, the sales volume is very less.

How are you going to convince the

dealers to join and st ay with you for a

long time?

We will achieve the same by telling

them about our st rategy and act ing

accordingly. We have told them that

we are going to bring fi ve cars by the

end of 2012 and we are doing it. We

will keep them informed about the

developments.

Can you profi le an ideal dealer?

I reiterate that the cust omer is the

best judge. I think the cust omers want

to be pampered. We would like that

our dealers are able to deliver on it.

Dealers should be able to take care of

all the issues that the cust omer is fac-

ing. A dealer who can off er cust omer a

good cost of ownership amongst other

things, is the ideal dealer.

What kind of services will Renault

off er on its product s?

We are off ering an extended warran-

ty and we think the cust omer is smart

enough to underst and. Th is is going to

be one of the attributes that diff erenti-

ates us from the competition. Service is

very important.

What is your future sales forecast ?

Once we reach 100 dealerships in

India, we will be able to reach the annual

sales target of one lakh units. We may

reach this fi gure by FY13 or 15 perhaps.

Th is will completely depend on the mar-

ket and the kind of competition coming

up. However, this is the kind of level we

want to reach in the near future.

Renault India aimed to be among top

three foreign brands in the country by

2015. What is your take on it?

Yes, but you don’t measure a brand

only by sales volume. You measure

brands by certain attributes.

According to you, what are the

attributes of a successful brand?

Th e pillars of a brand are quality,

excellence, reliability, design, st yling,

innovation and roominess.

How serious is Renault about India?

Do you know of any other interna-

tional brand, which has launched fi ve

cars in a period of 15 months in India?

Nobody has made such quick launches

I think. We launched Fluence in May,

Koleos in September, and now showcas-

ing Pulse, while Dust er will be launched

in the second part of 2012. Nobody has

grown a network from zero to 40 in six

months. Nobody has invest ed as much as

we have done in Chennai; no company

Having commissioned 40 dealerships in six months, the Indian arm of the French car manu-facturer, Renault wants to expand its presence across the length and breadth of the country and hopes to enlist 100 dealers by the end of 2012. Th e company will give utmost importance to providing good services stressed Managing Director, Renault India, Marc Nassif while talking to Nabeel A Khan. He made it clear that customer satisfaction will be the prime focus while set-ting up new workshops and outlets in order to associate the brand with quality and effi ciency.

“Soon you will fi nd our network from

Kashmir to Kanyakumari” Marc Nassif


IN CONVERSATION

has over 2,000 engineers that we share

with our alliance partner. We had fro-

zen the plan and then again re-st arted

and built teams to deliver it. Is this not

enough to show our commitment?

Do you think the market has

responded in the same tone as your

commitment?

So far, yes. You know the cust omers

are the judges. It’s not about numbers; we

don’t pretend to fl ow the market; we want

to build a foundation for the brand. And

the brand comes from cust omer satisfac-

tion. What we want is that every Fluence

cust omer or Koleos cust omer be satis-

fi ed and delighted with the product . We

do not have the ambition to go and bat-

tle with the main player who is doing 50

percent of the volume. We will not st art

competing with them by reducing the

price or dist orting the quality of the prod-

uct and not delivering extended warranty;

we want to give warranty up to two years

on our cars. However, if our cust omers

have other preferences, they can always

opt to go to our competition. No issues.

What are your basic parameters for

success?

Well, obviously the kind of services

we are off ering. Th e only way to judge

is cust omer satisfact ion and there are

diff erent ways to measure the same.

Let’s take an example: In Germany, we

talk about German brands but its pub-

lic that Renault in Germany has better

rating among the cust omers than that

of Volkswagen and I am not saying it,

the German cust omer is saying it.

Pulse has been designed by the Mumbai

team. How do you see their design

st rength?

Th e car is completely designed for

Indian roads and Indian cust omers.

Th e Mumbai design team does not only

design product s that are exclusively for

India. Whenever we have global design

project s, the Mumbai design team

is sweating on it. Th e result of their

st rength is shown here in the latest

product (Pulse). If you like this, then

they are of course doing great job.

What are your expect ations from the

new hatchback—Pulse—from the

Indian market?

First , we wanted to increase the vol-

ume so that we can increase the dealers’

network; this is because we want to

be visible and want to create trust and

connect with the cust omer. We hope

this product will help us. Very soon you

will be able to fi nd us from Kashmir

to Kanyakumari. �


Phot

ogra

ph: A

kmal

Rah

man

B

Chennai headquartered TVS Automobile Solutions is expanding its service centre network and exploring joint ventures and acquisitions. Besides, it is also looking at chains that have around fi ve to seven workshops to introduce training, IT and service capa-bilities. President, TVS Auto-mobile Solutions, R Srivatchan speaks to Bhargav TS on the company’s plans to have 120 company owned workshop and approxi-mately 400 franchise work-shops by 2014.

“Our aim isto look at the problem from

the customers’ point of view”


IN CONVERSATION

What are all the challenges you’re fac-

ing in the servicing indust ry?

Th e major challenges that we are

facing are arranging quality parts in

a timely manner and making sure that

our franchises and workshops grow

very fast , year-on-year and

month-on-month.

What kind of feedback are you receiv-

ing from service networks?

From our point of view, our cust om-

ers are happy. Since we have two service

verticals, one is the workshop service

and the other is on-road emergency

service networks. We provide two types

of workshop services—one is our com-

pany owned services and other is the

franchise-owned workshops. In all the

services we are receiving good cust omer

responses as a whole, with a few excep-

tions. However, we are addressing those

responses very fast .

Since many companies are entering

into this business, how are you gear-

ing up to meet the competition?

We are slow but st eady, and we

don’t want to make a very aggres-

sive pitch and then subsequently

fi nd our name everywhere. Also, we

recover very fast and will not allow

the cust omers to experience any dis-

satisfact ion. We need to give the right

response to our cust omers and st ake-

holders. Our business model refl ect s

the growth of the market.

Today, the market is at a nascent st age

and only now it is getting recognised

across the world. People are looking at

this service centre as a serious alterna-

tive. Th ere are challenges, at the same

time you fi nd that the authorised service

networks and their st andards have also

increased and many of them are highly

profi table. To compete with them is also

a major challenge for us.

Are there any plans to enter new

geographies?

Yes. We are evaluating our plans

to enter six markets like UAE, Qatar,

Saudi Arabia, Sri Lanka, Turkey and

Th ailand.

Recently, you have joined hands with

a few passenger car manufact urers.

Are there any plans for a tie-up with

two-wheeler and commercial vehicle

manufact urers?

As far as the commercial vehicles are

concerned, we have st arted conduct -

ing few trails and est ablishing our own

capabilities. After exploring the pos-

sibilities, we will be entering into this

market, either as a branded product or

as a white label service to the CV man-

ufact urers. At the moment it is in the

capability building st age.

What is the scope for these kinds of

service networks in India?

In the aftermarket business, if any-

one has fi ve percent market share,

which is around `900 crore, it is con-

sidered huge. As far as ‘MyTVS’ is

concerned, we are less than one percent

where we had a `35 crore turnover last

year and this year we are planning to

do around `80 crore. Th is way, by FY

2013, we can reach one percent.

Earlier, OEMs considered you as

a competitor. What is the current

scenario?

From our point of view, we don’t

consider either the OEMs or the small

garages as our competitors. We can

see the competition in a mature mar-

ket or where the market is limited,

but India is a growing market. Th us,

currently we don’t see any competi-

tion. We are in a position where we

can collaborate with car manufact ur-

ers, car dealers, part manufact urers,

as well as the small garages and tech-

nicians to give a level of service and

st andard of service to consumers—we

can collaborate with all of these peo-

ple. Our aim is to look at the problem

from the cust omers’ point of view and

the cust omers are taken care of as

well. Also we do not encourage spuri-

ous parts. Th e vehicle manufact ures

should encourage selling original parts

and aggressively st art promoting their

parts and make sure that it reaches the

end cust omers.

Th e vehicle population is increasing

day-by-day. Are there plans to expand

the MyTVS service networks?

Yes. We have taken private equity

invest ments of about `80 crore from

Kitara Capital and with our business

model, we believe that with this `80

crore and our promoter’s capital of

`40 crore, we will be able to bring in

approximately `500 crore of invest -

ments into this business. We have

made this as a separate company called

TVS Automobile Solutions. We are

pursuing the expansion of workshop

services all over the India. Currently,

we have 16 workshops and this year

we are planning to put another 30

workshops. Th is will give us formida-

ble network st rength to address the

market needs.

What is the roadmap for MyTVS?

Besides expanding the number of

workshops, we are also exploring joint

ventures and acquisitions in other parts

of India. Acquisitions can be through

the JVs or partnerships. We are also

looking at chains that have around fi ve

to seven workshops and est ablish asso-

ciations with them. Th is way, we will

be able to bring things like training, IT

and service capabilities to enhance their

level of service deliveries and ensure that

cust omers receive good services.

Th erefore by 2014, we will be having

100 to 120 company-owned workshops

and approximately 400 franchise work-

shops. �


EVENTS

LEADING international tyre manu-

fact urers are gearing up for next year’s

Tyrexpo Africa 2012 exhibition to be

held from 6-8 March 2012, Sandton

Convention Centre, Johannesburg,

by announcing plans for new prod-

uct s aimed at increasing penetration of

southern African markets.

Among them will be the popular

and successful Infi nity brand, dist rib-

uted by Tyrecor, for whom Managing

Direct or, Charl de Villiers st ated,

“Tyrecor is looking forward to the

upcoming Tyrexpo Africa 2012. We

will be celebrating our 10 year anni-

versary and will make use of this

opportunity to exhibit the brands that

we represent in Southern Africa. We

have recently expanded our Infi nity

UHP range and will showcase many

of these new sizes at the show.

He continued, “Solideal

Const ruct ion tyres and Starmaxx

Agricultural tyres will also feature

in our lineup of product s. Both these

brands have received great support

since being introduced to the mar-

ket and we wish to build on this. We

would like to invite all our cust om-

ers to join us at Tyrexpo Africa 2012

and experience fi rst -hand our quality

brands and join in the 10th anniver-

sary celebrations.”

Singapore-based Stamford Tyres is

another leading manufact urer return-

ing to exhibit at TyrexpoAfrica 2012

and will use the event to launch sev-

eral new product s in both their private

brand, Firenza, and exclusive

brand, Falken.

Taking centrest age will be the

launch of the brand’s fi rst 4x4/SUV

tyre—the Firenza AT186, which will

initially be available in sizes ranging

from 15 to 17 inches.

Th ere will also be a combination

of Falken brands, which are exclu-

sively dist ributed throughout South

Africa by the Stamford Tyres Group.

At the same time the very latest Falken

UHP pattern will be introduced—

the FK453—which will become the

new fl agship pattern in the high per-

formance sect or. Th e FK453 will be

available in sizes ranging from 16 to

22 inches and has a specially designed

tread pattern for super handling and

performance on wet roads.

Stamford Tyres has est ablished a

growing presence throughout South

Africa and currently operates sales and

administ ration bases in Johannesburg,

Durban and Cape Town, Port

Elizabeth and Bloemfontein, which

support st rategically placed warehouses

across the country.

Tubest one, the local dist ribu-

tor of BKT and Nankang tyres, will

be another prominent exhibitor next

March. India’s BKT is one of the

world’s leading manufact urers of Off

Highway tyres and supply Tubest one

Tyrexpo Africa 2012 set to expand footprint across continent


EVENTS

Automechanika Shanghai marks highest number of overseas buyers

with their range of agricultural, con-

st ruct ion, indust rial, earthmover and

port application tyres.

Nankang provides the company’s

passenger tyre range and remains on

the forefront in technology and quality.

Th ey aim to const antly improve com-

fort, speed and safety in transportation.

“Tyrexpo Africa is utilised to raise our

presence in the market, showcase new

and exist ing product s and interact with

show visitors” said Tubest one’s Managing

Direct or, Pieter Kruger.

According to Pieter, delegates

can once again expect an impres-

sive setup from Tubest one, BKT and

Nankang, with plans for a profes-

sional, yet comfortable and relaxing

area for visitors. Th ey urge visitors to

st op by their st ands, C01 and D01,

where Tubest one, Nankang and BKT

exhibiting employees will be happy

to supply more information regarding

their product s.

Techking is another brand keen

to promote its all-round product ion

capabilities, which has seen the recent

launch of new truck and bus tyres in

the TBR range and development of the

new ETMPT 1 tyre for loaders, grad-

ers and backhoe applications.

While tyres will naturally have a

high profi le at the show, visitors will

also have the opportunity to see the

latest in workshop equipment and acces-

sories from leading suppliers. Th ese

will include Automotive Equipment,

Hofmann Megaplan, Launch

Technologies, Leaderquip, Leadertread,

Robert Bosch, SDS Syst emtechnik,

Wheelquip and Haweka.

Tyrexpo Africa 2012 takes place

at the Sandton Convention Centre,

Johannesburg (SCC), South Africa

between 6-8 March 2011. �

AUTOMECHANIKA Shanghai

2011 to be held at the Shanghai New

International Expo Centre from 7-10

December, is expect ing more than

60,000 professional buyers at the show

including delegations from Aust ralia,

Iran, Malaysia, Middle East and

Poland as well as Chinese delega-

tions from Anhui, Hunan, Fujian and

Guangdong. Show visitors will be able

to visit more than 3,600 exhibitors who

will be showcasing their latest product s

and technologies in 160,000 sqm of

exhibition space.

Focus On Hot Industry Issues Th is year’s fringe programme will

explore the current issues ranging from

remanufact uring and new energy to

auto accessories, parts & components

and repair & maintenance.

• International Automotive Congress

2011: Co-organised with Inst itut für

Kraftfahrwesen Aachen University

(ika), the event has confi rmed speak-

ers include professionals and analyst s

from automotive research inst itutions.

Focusing on automotive indust ry

technology trends, this annual con-

gress will cover indust ry development

and new technology, powertain and

energy saving, automotive elect ronic

and safety syst em as well as chassis

and drive syst em.

Automechanika Shanghai is promoted

asone of Asia’s “must attend” largest

trade fairs for automotive parts, equip-

ment and services. Many well-known

international brands including Affi nia,

Federal Mogul, Meguiar, Philips and

Schaeffl er, will use this opportunity

to host show events to enhance their

brand awareness. �


SPECIAL REPORT

CAPGEMINI, the technology and

outsourcing consultancy services

recently released its 13th annual global

automotive st udy, Cars Online 11/12.

Th is year’s report reveals increased

interest in buying cars online, and a

growing demand for new vehicles in

mature markets (66 percent, up from

61 percent in 2010). At the same time,

however, many consumers indicated

they were post poning buying a car

until the economy shows more signs of

st ability. New ownership trends such

as car-sharing and technology devel-

opments like smart phone apps are

also impact ing the global automotive

indust ry as the number of channels for

researching and buying cars increases,

and cust omers’ expect ations and choic-

es continue to rise.

Th e st udy surveyed over 8,000

consumers in Brazil, China, France,

Germany, India, Russia, the UK and

US and provides a detailed analysis of

CV buying behaviour around the world

including shopping patterns, social

media usage, online buying, green

vehicles, cust omer interact ion, after-

sales and servicing.

Key fi ndings from this year’s st udy

include the role of the internet and

social media—putting consumers in the

driving seat. Consumer internet behav-

iour, as well as the rise of tablets and

smartphones are increasingly impact ing

the vehicle decision and buying process,

with price, guidance and product infor-

mation continuing to be the primary

features consumers research via the

Internet. Th e role of the internet during

the vehicle buying process is becom-

ing increasingly important, with fewer

people visiting showrooms until very

close to the point of purchase. Web

usage for both purchasing and research

has increased, with the number of con-

sumers researching online reaching

94 percent. Th is is driven in part by

increased use in developing markets.

Consumers are increasingly expand-

ing their web usage during the research

process to include social media, particu-

larly in developing markets. Among the

tools consumers turn to are dealer and

manufact urer social media sites, auto-

motive blogs and discussion groups,

information/ encyclopedia sites, per-

sonal and professional social networking

sites, video and photo-sharing sites, and

social messaging/micro-blogging sites.

71 percent of respondents said they

would be likely to purchase a vehicle if

they found positive comments post ed on

social media sites.

In this year’s st udy, 42 percent of

consumers said they were likely to

purchase a vehicle over the Internet,

up from 37 percent two years ago.

Consumers who are not interest ed in

buying online cite the inability to test

drive the vehicle, to receive full product

and price information and to see pho-

tos/video of the vehicle. Th ese perceived

barriers have remained consist ent over

the past few years, yet they are clearly

addressable and should be capitalised

upon by dealers and manufact urers

with a formal social media and chan-

nel management st rategy to engage with

exist ing and potential cust omers.

Alternative Buying ModelsIncreasing demand for alternative

buying models refl ect s a growing shift

from product s to services as consumers

move from traditional vehicle owner-

ship to “power by the hour.” Nearly 40

percent of respondents would consider

alternatives such as vehicle-sharing, up

from 35 percent in 2010. Th e buying

cycle continues to shrink leaving dealers

with fewer opportunities to interact face-

to-face with cust omers, and the trend

for non-traditional approaches to vehicle

Our Bureau

Capgemini study

highlights increased online demand for new vehicles

SPECIAL REPORT


buying and ownership continues to grow.

Green VehiclesConsumer interest in green vehicles

continues to gradually increase as this

year elect ric vehicles made it to the mass

market for the fi rst time. 44 percent of

consumers (up from 41 percent in 2009)

said they currently own a fuel-effi cient

or alternative-fuel vehicle and 39 percent

are planning to buy a green vehicle (up

from 30 percent in 2009. Th is is expect -

ed to continue as fuel prices fl uct uate,

environmental awareness rises and gov-

ernments provide tax credits and other

incentives. In this year’s st udy, 42 per-

cent of respondents expect full-elect ric

vehicles to be a viable sales option (in

terms of pricing and availability) within

two years, up from 36 percent the prior

year. Additional vehicle types identifi ed

by respondents include hybrid, biodie-

sel, hydrogen fuel cell and natural gas.

However, price remains the biggest

blocker to sales of alternative-fuel vehi-

cles, followed by battery range, reliability

and safety. Th e lack of charging locations

is another concern for consumers consid-

ering elect ric vehicles. Th e automotive

indust ry needs to develop eff ect ive solu-

tions and work with government and

other third parties to ensure that the

necessary infrast ruct ure is in place to

support the move toward e-Mobility.

Customer LoyaltyWhile satisfact ion levels grew, brand

and dealer loyalty again declined this

year. Sixty-one percent of consumers

said they were likely to purchase/ lease

the same make or brand as their cur-

rent vehicle, down from 65 percent in

2010 and 68 percent in 2009. Similarly,

dealer loyalty edged down to 55 per-

cent, compared with 56 percent in 2010

and 63 percent in 2009. Cust omer loy-

alty remains st rongest in the developing

markets, but is declining somewhat

from the very high levels seen a few

years ago. Th is is not surprising as the

number of brands and dealers grows in

the developing markets, providing car

buyers with more choices. Th is is also

the case for loyalty to servicing dealers,

which is declining in the developing

regions as competition increases.

Conclusion Th is year’s Cars Online report

makes it clear that the automo-

tive indust ry faces critical changes

and challenges in the marketplace.

Automotive companies must under-

st and how consumer dynamics are

evolving and consider the impact these

changes may have on their business

in the coming years. Following are

recommendations to help automotive

companies apply the report’s fi ndings

to their own business:

a) Develop a formal social media man-

agement st rategy

Consumers increasingly rely on and

are infl uenced by social media during

the vehicle buying process as well as

the ownership lifecycle. Th e automotive

indust ry has the opportunity to leverage

social media to build brands, gener-

ate leads, drive sales, manage cust omer

relationships and retain cust omers. To

capitalise on this opportunity, com-

panies should develop a formal social

media management st rategy that

includes real-time web list ening, analy-

sis and cust omer outreach.

b)Maximise the consumer interac-

tions with integrated end-to-end

campaigns

As the buying cycle shrinks, deal-

ers have fewer opportunities to interact

face-to-face with cust omers. Yet overall,

the possible cust omer touchpoints have

increased due to the growing number of

channels and devices used by consumers

during the buying process, present-

ing new and diff erent opportunities for

interact ion. Th is development, along

with the increasing sophist ication and

empowerment of cust omers, is driving

a need for businesses to fully integrate

marketing campaigns in order to take

advantage of all possible touchpoints.

c) Experiment with alternative buying

and ownership models

As consumers show budding inter-

est in new approaches such as mobility

packages and vehicle sharing, automo-

tive companies should test the waters.

If these new models take hold they

could have a signifi cant impact on bill-

ing syst ems, cash fl ow and

31

28

24

2333

19

16

13

1224

31

28

31

42

43

9

9

8

8

7

26

23

18

16

12

50%40%30%20%10%0%

1

Dealer or manufact urer social media sites

Th ird-party automotive discussion group/forum

None of these

Th ird-party automotive weblog

Information/encyclopedia site with user-generated content

Personal social networking sites

Online video site/vide-sharing service

Professional social networking sites

Photo sharing sites

Mobile phone applications/advertisements

Social messaging/micro-blogging services

Social bookmarking sites

RSS feeds

Other

Mature Markets

Developing Markets

Use of Social Media and Other Online Tools (% saying)


SPECIAL REPORT

fi nancial services.

d) Focus on a holist ic dealer st rategy in

developing markets

Dealer network development in

countries such as China and India

needs to focus on a number of

elements. Proximity is critical as con-

sumers are unwilling to travel far to

buy or service their vehicles. However,

it’s not enough just to saturate a

market; dealer quality is becoming

increasingly important in the develop-

ing regions as competition grows and

consumers become

more demanding. Th is requires

invest ments in training, syst ems and

processes, and a st rong aftersales/serv-

icing programme.

e) Seize the online buying opportunity

Despite growing consumer demand

for online buying of vehicles, parts and

accessories, the capability remains scarce

in most markets. When launching an

online buying model, automotive com-

panies should consider the key fact ors

consumers are looking for: price dis-

count, ease and speed of transact ion, full

price and product details, and the ability

to solve the test drive issue.

f) Keep “green” on your radar

Th e emergence of elect ric vehicles

and e-Mobility may drive a wide range

of fundamental changes in the automo-

tive indust ry, and companies will need

to develop eff ect ive solutions to manage

them. Th e changes are likely to impact

areas such as competition, innovation,

partnerships, and technology syst ems

and processes. �

Your st udy recommended for devel-

oping a formal social media network

management due to increasing

purchases over internet (37 to 42

percent)—would that aff ect dealer-

ship business?

I think social media has not exist -

ed in the most peoples’ thinking

about fi ve years ago. Now it is big and

important, but people are not really

sure on how to use it and leverage it

to a position where I think the market

has matured. Every time where there

is a new channel—like the internet

or lead management—there is always

a concern whether it will change the

st atus between the OEM, the deal-

er and the consumer. Th e answer is

yes; however, up until now, it has

never radically changed. Th e OEM is

st ill using the dealer as the primary

retailer. In social media it is going to

be exact ly the same. Somehow, as an

example, the OEMs will be looking at

dealerships in a certain area and they

will be working with all the dealer

principles. It will help address the

demand spread in diff erent pockets of

the region. So the social media will be

a win-win between the OEMs, dealers

and consumers.

Dealers say their margins are

under pressure due to escalating cost

of real est ate and operational cost s,

and this business is losing its charm.

However, your st udy wanted more

dealerships to be opened. How do you

view this?

Th e dealers work on low margins

and are always under severe pressure.

Th e OEMs will try to push as much

product s as possible to the dealers and

dealers try to push the consumers. And

the consumers will try to reduce the

price. Where does the power sit? In

the old world, it generally sat with the

manufact urers. In the new world ie in

the last ten years, the power sits with

the consumer. Th ose dealers who pro-

vide the sales outlets within 50 miles

and service outlet within ten miles or

so, will be the winner.

What’s the scene in India?

If the OEMs or the dealers in India

think that somehow they can know

what the consumer wants, they can

succeed. More than sales outlets it is

essential to have service points as the

sales happen perhaps once in fi ve years,

while the cust omers need to visit serv-

ice centres more often. Th us service is

critical part of sales. Th e Indian deal-

ers have to take a long-term view. Th e

interest in Indian market for all of the

OEMs is not the size of the market

today but tomorrow. Th erefore it is nec-

essary to plan for tomorrow.

Th e aftersales service ranking

has moved upwards to 4th position

from 7th position last year. What is

the reason?

Over 50 percent of respondents said

that they would buy the next car from

the same place that they get their car

serviced today. It is because of the good

relationships that the service centres

maintain with the consumers. As we

move on to social media— the fast inter-

act ion world—I think there will be more

communication between the after sales

points and the consumers.

Nick Gill, Global Automotive Sector Leader, Capgemini

T Murrali


EXTRA MILE

Abhishek Parekh

PASSION for cars and hardnosed

salesmanship got SVS Subramanya

Gupta into the dealership business and

has also helped him make Bangalore-

based Advaith Hyundai, among the

fi rst of the Hyundai dealers to set up

shop and emerge among the top selling

dealership of the Korean car maker in

the country.

Gupta attributes the success of his

dealership to his management skills and

cust omer driven product lineup from

Hyundai Motors. It has also helped

that Bangalore has emerged as a mega

metro over the last decade spurred by

information technology and manufac-

turing-led employment growth.

“Th ere is a cosmopolitan culture in

Bangalore where people from all walks

of life keep and remain in close touch

with each other. Th is microcosm of the

city has played a key role in our suc-

cess as a dealer,” said Direct or, Advaith

Motors, SVS Subramanya Gupta.

He added that as a dealer, his prior-

ity has always been to give more time to

unsatisfi ed cust omers and go the extra

mile to cater to them. Such eff ort has

Setting an examplePersonal connect with customers has helped SVS Subramanya Gupta of Advaith Hyundai become one of the top Hyundai dealers nationally

Advaith Hyundai’s Bangalore service centre


EXTRA MILE

helped him get a ‘word-of-mouth’ fol-

lowing and expand his cust omer base

across multiple cities.

Underst anding cust omers’ require-

ments and presenting them with

numerous options is the key diff eren-

tiator for any dealer. Options could

also be in terms of presenting numer-

ous fi nance options for the cust omers to

enable him/her to shift to a higher seg-

ment car. He believes in leading from

the front. An outgoing salesman, Gupta

has taken upon a target of selling at

least two cars himself daily, irrespect ive

of his location during the day, and has

managed to achieve this target on most

days over the past few months!

Located in the heart of Bangalore,

Advaith has consciously put off the

idea of having round the clock opera-

tions despite signifi cant pressure on the

service centre to do so. “We are able to

manage the work intensity so far, and

will continue to do so going forward.

Starting round the clock service opera-

tions has other operational implications

as accounts a6nd other support serv-

ices also need to be running round the

clock,” he elaborated. Vehicles coming

for servicing, with or without service

appointments, are taken care of within

a working day. In case of major service

or overhaul work, it keeps the car for a

day longer and delivers it to cust omers

at the earliest .

An automobile enthusiast himself,

Gupta had his fi rst tryst with auto-

mobile dealership business running

Kinetic Honda dealership in the nine-

ties and subsequently shifted to running

a Ford dealership. He joined hands

with Hyundai as soon as the Korean car

maker entered India around 1998 and

has been a leading dealer of Hyundai

Motors for the last 13 odd years. Over

the past couple of years, he has been

looking to expand his vehicle range and

has forayed into selling Mercedes Benz

buses, Mahindra tract ors and JCB’s

range of const ruct ion equipments.

When pointed out that a major met-

ropolitan city like Bangalore has only

three Hyundai dealerships thus pro-

viding an open playing ground in a

growing market for cars, Gupta off ers

a diff erent take on the issue. “We have

taken the fi nancial risk and expanded

our operations keeping in mind the

potential of this city even as the overall

market for cars has grown multi-fold

over the last decade. My fellow dealers

in other metros like Delhi and Mumbai

too were provided the opportunity by

Hyundai to expand by opening multi-

ple outlets. Some of them took up the

off er and some did not. Th e point is that

the OEM has the ambition to be the

leading brand and we have been able to

grow with them,” said Gupta.

He added that even during his time

as a leading Ford dealer in Bangalore,

The interiors

The showroom


EXTRA MILE

Gupta was outselling his fellow deal-

ers in the heart of the city despite his

dealership located on the outskirts and

limited market for a premium cars in

the late nineties.

He is already operating four show-

rooms in and around Bangalore and two

more in Mysore, around three hours

drive from Bangalore. Additionally,

he is also running one showroom each

in Hassan and Mangalore. Additional

showrooms are coming up in Kolar,

Ramanagaram and Uttaradi, all within

short driving dist ance from Bangalore.

He already employs more than 1,500

people in sales, service and other sup-

port st aff across showrooms and sells an

average of around 800 to 850 cars every

month from all outlets.

Gupta is gearing up for more act ion

and is already drawing up plans for

additional showrooms in South India

as opportunities are provided to him.

He has been among the top selling

dealers by volume for Hyundai Motors

nationally and claims to be top seller

for Hyundai Motors globally in the

dealership category. Hyundai operates

company owned showrooms in many

markets globally.

Some of the priorities going for-

ward for Advaith are retaining and

attract ing skilled and unskilled man-

power and expand service network in

indust rial zones in and around cities.

Gupta points out that he has made an

eff ort to gather a team of people who

are as passionate about automobiles

as he himself is. Th is has ensured that

worker product ivity and additional

eff ort at going that extra mile has

never been a problem. �

Gupta (in white half sleeve shirt) with his Advaith team


AUTO POINT

THE CV indust ry has been able to

successfully fade away the growing

uncertainties in economic situation cre-

ated due to infl ationary pressure, hike

in fuel prices and interest rates since

the st art of second quarter of this fi s-

cal. Upbeat demand from goods carriers

(GC) segment in both medium and

heavy commercial vehicles (M&HCV)

and light commercial vehicles (LCV) on

the back of healthy freight movement

created due to long fest ive season kept

demand for GC at healthy levels till the

fi rst seven months of thecurrent fi scal.

Healthy freight demand ensured

revenue sust ainability for FOs; though

profi tability took a beating owing to rise

in diesel price and interest rates CARE

Research observes that during, the

past two and half years, healthy freight

movement has enabled Freight

Operators (FOs) in keeping utilisa-

tion of their vehicles at higher levels.

Hence, even though the rise in diesel

price and interest cost pulled down their

profi t margins, sust ainability in freight

movement both in primary as well as

redist ribution enabled FOs to increase

freight rates and gradually pass on the

price rise to their cust omers. Healthy

freight movement also ensured consist -

ency of revenues for FOs that kept sales

for GCs at decent levels till now.

With economic act ivity slowing

down, freight movements have st arted

cooling especially post fest ivals. Th e

post fest ive period has been challenging

for the economy. Persist ence of high

infl ationary scenario has compelled

RBI to resort to yet another interest

rates hike last month, which has been

the eighth time in last 12 months.

Growth levels in CV demand to plummet post-festivals

Revati Kasture

Head, Industry Research, CARE Research

Vishal Srivastav

Deputy Manager, CARE Research

Source: CARE Research

Note:

Diesel prices and freight rates is calculated for 16 tonne payload capacity vehicle

key cost component includes fuel cost , interest cost and other operating cost of an M&HCV

0.80

1.00

1.20

1.40

1.60

1.80

Apr

-09

Jun-

0 9 -09

Oct

-09

Dec

-09

Feb-

10

Apr

-10

Jun-

10 -10

Oct

-10

Dec

-10

Feb-

11

Apr

-11

Jun-

11 -11

Freight rates Key costs

Rs/tkm

Aug

Aug

Aug

Trend in diesel price and key cost components


AUTO POINT

However, this move has impact ed

credit growth subst antially and has

also consequently pulled down India’s

IIP (Index of Indust rial Product ion)

growth, which merely managed to

increase by 1.9 per cent in September

2011, the lowest in last two years. Th e

worst aff ect ed has been IIP for mining

and capital goods, that has observed a

drop of around six percent and seven

percent respect ively. Th e mining indus-

try has been hit signifi cantly owing to

uncertainties creeping in due changes

in regulations by various st ate govern-

ments with respect to environmental

norms and illegal mining. Whereas, rise

in borrowing cost owing to increase in

interest rates have led to considerably

drop in invest ments towards expansion

project s across various indust ries.

Th e inventory levels with OEM have

risen subst antially especially in the

goods LCV segment; indicating forma-

tion of demand pressure .Th e impact of

the slowdown in indust rial product ion

and hardening of interest rates have st ill

not adversely aff ect ed the goods com-

mercial vehicle sales, as domest ic sales

observed a growth of 18.5 per cent in

Oct ober 2011 on y-o-y basis. However,

with further analysis it was found that

there has been inventory pile up of

around none-10 days at OEM level

since last four-fi ve months

pointing towards even more inventory

pile up at the dealer level. While dur-

ing same period in FY10, there was

virtually no inventory at the OEM

level. Generally automobile OEMs try

to push sales at dealer levels and keep

minimum or no inventory with them-

selves in order to have comfortable

working capital position.

Hence consist ent pileup of the inven-

tory at OEM level indicates demand

pressure. CARE Research foresees, in

short term period indust ry would wit-

ness correct ion in product ion levels by

some extent to match demand situation

which will consequently lead to drop in

sales growth levels.

Long term outlook for the indust ry

would continue to remain encouraging.

CARE Research est imates the domest ic

CV sales to grow at a CAGR of around

11-12 percent during FY11-FY16 peri-

od. CARE Research believes healthy

long-term macro-economic outlook cou-

pled with increase in government focus

towards development of transport infra-

st ruct ure would fade away the short-term

concerns over economic uncertainties and

rise in interest rates. Th e GC segment

would continue to dominate the growth

as it is expect ed to grow at a healthy

CAGR of around 12-13 per cent during

the same period. �

(Th e report is prepared by CARE

Research, a division of Credit Analysis &

Research. Views expressed are personal.)

Source: CMIE

Trend in IIP

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Mar

-10

Apr

-10

May

- 10

Jun-

10

Jul-1

0

Aug

-10

Sep

-10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

- 11

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

IIP: Mining IIP: Manufacturing

IIP: Capital goods IIP: Consumer goods

Comparison of production and sales in goods commercial vehicles segment

Source: CARE Research

0.00

0.05

0.10

0.15

0.20

0.25

0.30

M&HCV GC LCV GC

Uni

ts (i

n m

n)

Prod

uctio

n

Sale

s

April - October 2011

7 days inventory

10 days inventory

Uni

ts (i

n m

n)

Prod

uctio

n

Sale

s

7 days inventory

10 days inventory

M&HCV GC LCV GC

April - October 2010

Waiting period


STUDY

WHILE the emissions of developing

countries continued to grow in 2009 (+3.3

percent), led by Asia and the Middle East ,

the emissions of developed countries fell

sharply (-6.5 percent), putting them at 6.4

percent below their 1990 collect ive level. It

should be noted that 2009 emission levels for

the group of countries participating in the

Kyoto protocol were 14.7 percent below their

1990 level.

Early indications suggest that CO2 emis-

sion trends in developing countries in 2010

will continue to increase through growing

consumption of fossil fuels in some of the

larger countries. Th e trend of emissions in

developed countries will rebound in 2010 and

CO2 emissions will likely be at a similar level

to 2008, before the recent fi nancial crisis and

the slowdown in economic act ivity.

In the medium term, CO2 emissions are

expect ed to rebound when economic condi-

tions pick up. In its New Policies Scenario,

the World Energy Outlook (WEO 2010)4

project s that world CO2 emissions from fuel

combust ion will continue to grow unabated,

albeit at a lower rate, reaching 35.4 Gt CO2

by 2035. Th is is an improvement over the

Current Policies Scenario of the WEO and

Emissions grow in developing countries

India among top ten polluters


STUDY

is in line with the worst -case scenario

presented by the Intergovernmental

Panel on Climate Change (IPCC)5 in

the Fourth Assessment Report (2007),

which project s a world average tem-

perature increase of between 2.4°C and

6.4°C by 2100.

In 2009, 43 percent of CO2 emissions

from fuel combust ion were produced

from coal, 37 percent from oil and 20

percent from gas. Currently, coal is

fi lling much of the growing energy

demand of those developing coun-

tries, such as China and India, where

energy-intensive indust rial produc-

tion is growing rapidly and large coal

reserves exist with limited reserves of

other energy sources. Without addi-

tional measures, Energy Technology

Perspect ives (ETP 2010) shows that

intensifi ed use of coal would subst an-

tially increase CO2 emissions unless

there was a very widespread deployment

of carbon capture and st orage (CCS).

Two-thirds of global emissions for

2009 originated from just ten coun-

tries, with the shares of China and the

United States far surpassing those of

all others. Combined, these two coun-

tries alone produced 12.0 Gt CO2, 41

percent of world CO2 emissions. Two

sect ors, elect ricity and heat generation

and transport, produced nearly two-

thirds of global CO2 emissions in 2009.

Generation of elect ricity and heat

was by far the largest producer of CO2

emissions and was responsible for 41

percent of the world CO2 emissions

in global emissions. Countries such as

Aust ralia, China, India, Poland and

South Africa produce between 68 per-

cent and 94 percent of their elect ricity

and heat through the combust ion

of coal.

By 2035, the WEO 2010 project s

that demand for elect ricity will be

approximately three-quarters higher

than current demand. Th is demand will

be driven by rapid growth in population

and income in developing countries, by

the continuing increase in the number

of elect rical devices used in homes

and commercial buildings, and by the

growth in elect rically driven indust ri-

al processes. Meanwhile, the share of

renewables in total elect ricity genera-

tion rises from 19 percent in 2008 to 23

percent, 32 percent and 45 percent in

the current policies, new policies and

450 scenarios, respect ively. Transport,

the second-largest sect or, represented

23 percent of global CO2 emissions

in 2009. CO2 emissions in this sect or

decreased between 2008 and 2009 by

1.7 percent.

Th e United States has the highest

level of passenger travel per capita in

the world (more than 25,000 km per

person per year). Until recently, lower

fuel prices in the United States contrib-

uted to the use of larger vehicles, while

in Europe higher fuel prices encouraged

improved fuel economy (along with the

EU voluntary agreement with manufac-

turers). As a result, there is more than a

50 percent variation in the average fuel

consumption of new light-duty vehicles

across OECD member countries.

Global demand for transport appears

unlikely to decrease in the foreseeable

future; the WEO 2010 project s that

transport fuel demand will grow by

about 40 percent by 2035. To limit emis-

sions from this sect or, policy makers

should fi rst and foremost consider meas-

ures to encourage or require improved

vehicle effi ciency, as the United States

has recently done, and the European

Union is currently doing as a follow-up

to the voluntary agreements. Policies

that encourage a shift from cars to pub-

lic transportation and to lower emission

modes of transportation can also help.

Finally, policies can encourage a

shift to new, preferably low-carbon

fuels. Th ese include elect ricity (eg

elect ric and plug-in hybrid vehicles),

hydrogen (eg through the introduc-

tion of fuel cell vehicles) and greater

use of biofuels (eg as a blend in gaso-

line and diesel fuel). To avoid a rebound

in transport fuel demand, these moves

must also be backed up by emissions

Source: Indust ry Reports and ICRA’s Analysis

Top 10 emitting countries in 2009

0 2 4 6 8

China

United States

India

Russian Federation

Japan

Germany

Islamic Republic of Iran

Canada

Korea

United Kingdom

Top 10 total: 19.0 Gt CO2World total: 29.0 Gt CO 2

Gt CO2

November 2011 17

FADA s 7th Auto Summit - 9th & 10th January 2012 at New Delhi

Previous Auto Summits - Flashback

FADA will be organising its major biennial event, viz.7th Auto Summit on 9th & 10th January 2012 at Hotel LeMeridien, New Delhi, coinciding with Auto Expo scheduledfor 7th to 11th January 2012. Having regard to speed-breakersencountered from time to time, the theme of Auto Summit2012 is SHIFTING GEARS - TERRAIN AHEAD . Asearlier Summits, the Auto Summit 2012 is being organisedin association with SIAM.

Dr Montek Singh Ahluwalia, Dy Chairman, PlanningCommission, has kindly agreed to inaugurate the AutoSummit 2012 and to deliver the Inaugural Address. MrAnand Mahindra, Vice Chairman & MD, Mahindra &Mahindra Ltd will be the Chief Guest at the InauguralSession, while Mr S Sandilya, President, SIAM and GroupChairman, Eicher Motors will deliver the keynote address.

As in the past, Auto Summit 2012 will be a two-day event.The day one, i.e. 9th January 2012 will, by and large,comprise workshops on day-to-day management ofautomobile dealerships and best dealership practices. Theday two of the event, i.e. 10th January 2012 will start with aformal Inaugural Session at 10.30 a.m. followed by otherBusiness/Interactive Sessions. As in the previous AutoSummits, industry leaders, senior Government ministers &officials, captains of allied businesses and renownedmanagement gurus are expected to address and interactwith the participants at the 7th Auto Summit.

Auto Summit presents a great opportunity for automobiledealers to meet the industry leaders and other members ofauto retail fraternity from across India and abroad to sharetheir experiences and exchange ideas.

The Auto Summit brings together all stakeholders on acommon platform to mull and address the current &emerging challenges for sustained growth of all playersconnected with automotive business.

The Summit is also an occasion to celebrate and unwind,as cultural evening and networking cocktails & dinner forman integral part of the two-day programme.

Presentation of Automotive Dealer Excellence Awards(ADEA) for the year 2011 forms an integral part of theprogramme.

BackgroundFADA has been organising a biennial Convention ofAutomobile Dealers, viz. Auto Summit at New Delhicoinciding with the Auto Expo, commencing from the year2000. The previous Summits were a grand success, eachSummit attracting 700-800 participants representingdealerships, vehicle manufacturers, oil companies, banks,insurance & finance companies and media from all overthe country and abroad. Practically, all leaders of automotiveindustry and allied businesses have addressed at this forumin the past on various issues including changing paradigmof auto retail, marketing, human resource management,customer satisfaction, relationship management, etc.

The Summit deliberations helped in creating a tremendousawakening and identifying the challenges & opportunitiesfor automotive business as a whole.

Registration and Programme Details

For Registration and Programme Details, please contactFADA Office at the following address:

Federation of Automobile Dealers Associations (FADA)805, Surya Kiran, 19, K G Marg, New Delhi - 110 001Phones: 011 - 2332 0095, 6630 4852, 4153 1495E-mail: [email protected]

The registration form and programme details can also bedownload from FADAs website: www.fadaweb.com


STUDY

pricing or fuel excise policies.

Th ese policies would both reduce

the environmental impact of transport

and help to secure domest ic fuel sup-

plies, which are sometimes unsettled by

the threat of supply disruptions, whether

from natural disast ers, accidents or the

geopolitics of oil trade. As these policies

will ease demand growth, they are also

likely to help reduce oil prices below what

the prices might otherwise be.

Indicators such as those briefl y dis-

cussed in this sect ion st rongly refl ect

energy const raints and choices made

to supply the economic act ivities of

each country. Th ey also refl ect sect ors

that predominate in diff erent coun-

tries’ economies. In 2009, the largest

fi ve emitters (China, the United States,

India, the Russian Federation and

Japan) comprised 45 percent of the total

population and together produced 56

percent of the global CO2 emissions and

51 percent of the world gross domest ic

product (GDP).

Although climate and other variables

also aff ect energy use, relatively high

values of emissions per GDP indicate

a potential for decoupling CO2 emis-

sions from economic growth. Among

the fi ve largest emitters of CO2 in 2009,

China, the Russian Federation and the

United States have signifi cantly reduced

their CO2 emissions per unit of GDP

between 1990 and 2009. Th e other two

countries, India and Japan, already had

much lower emissions per GDP.

Worldwide, the highest levels of emis-

sions per GDP are observed for the oil

and gas exporting region of the Middle

East and for the relatively energy-in-

tensive. Economies in transition EITs9.

China emissions per GDP have fallen

close to the level of the United States. As

compared to emissions per unit of GDP,

the range of per capita emission levels

across the world is even larger, highlight-

ing wide divergences in the way diff erent

countries and regions use energy.

In 2009, the United States alone

generated 18 percent of world CO2

emissions, despite a population of less

than fi ve percent of the global total.

Conversely, China contributed a com-

parable share of world emissions (24

percent) while accounting for 20 percent

of the world population. India, with 17

percent of world population, contributed

more than fi ve percent of the CO2 emis-

sions. Among the fi ve largest emitters,

the levels of per capita emissions were

very diverse, ranging from 1 t of CO2 per

capita for India and 5 t for China to 17 t

for the United States.

Indust rialised countries emit far

larger amounts of CO2 per capita than

the world average. However, some

rapidly expanding economies are sig-

nifi cantly increasing their emissions

per capita. For example, between 1990

and 2009, among the top fi ve emitting

countries, China increased its per capita

emissions by over two and a half times

and India doubled them. Clearly, these

two countries contributed much to the

8 percent increase of global per capita

emissions over the period. Conversely,

both the Russian Federation and the

United States decreased their per capita

emissions signifi cantly, by 27 percent

and 13 percent respect ively, over the

same period.

India’s Pro� leIndia emits more than fi ve percent

of global CO2 emissions, and emis-

sions continue to grow. CO2 emissions

have almost tripled between 1990 and

2009. Th e WEO 2010 New Policies

Scenario project s that CO2 emissions in

India will increase by almost 2.5 times

between 2008 and 2035. A large share

of these emissions are produced by the

elect ricity and heat sect or, which rep-

resented 54 percent of CO2 in 2009, up

from 40 percent in 1990.

CO2 emissions in the transport sec-

tor accounted for only nine percent of

total emissions in 2009, but transport

is one of the fast est growing sect ors.

In 2009, 69 percent of elect ricity in

India came from coal, another 12 per-

cent from natural gas and 3 percent

from oil. Th e share of fossil fuels in the

generation mix grew from 73 percent

in 1990 to 85 percent in 2002. Th e

share of fossil fuels has declined st ead-

ily since then, falling to 81 percent in

2006, although increasing back up to

84 percent in 2009. Although elect ric-

ity produced from hydro has act ually

risen during this period, the share fell

from 25 percent in 1990 to 12 percent

in 2009.

India is promoting the addition of

other renewable power sources into its

generation mix and had an inst alled

capacity of 17 GW of renewable ener-

gy sources on 30 June 2010. Under

its National Act ion Plan on climate

change, India plans to inst all 20 GW of

solar power by 2020. With an inst alled

wind capacity of 12 GW in June 2010,

India has the world’s fi fth-largest

inst alled capacity of wind power.

Of the BRICS countries, India has

the lowest CO2 emissions per capita (1.4 t

CO2 in 2009), about one third that of the

world average. However, due to the recent

large increases in emissions, the Indian

ratio is more than two times that of its

ratio in 1990 and will continue to grow.

India’s per capita emissions in 2035 will,

however, st ill be well below those in the

OECD member countries today.

In terms of CO2/GDP, India has

continuously improved the effi ciency of

its economy and reduced the CO2 emis-

sions per unit of GDP by 16 percent

between 1990 and 2009. India aims to

further reduce emissions intensity of

GDP by 20-25 percent by 2020 com-

pared with the 2005 level. �

(Extract s: ‘CO2 emissions from

fuel combust ion’ - International

Energy Agency)


STUDY

Indian port sector: Growth plans ambitious, uncertainty

over implementationCARGO growth at Indian ports was mod-

erate in 2010-11, with the overall increase

in throughput at four percent year-on-year

(yoy). Th is resulted from the low growth in

cargo volumes at the major ports (1.6 percent

yoy increase) because of a signifi cant reduc-

tion in volumes of iron ore, a major cargo

category, following Karnataka’s banning of

iron ore exports since August 2010. Th e cargo

growth at the non-major ports however con-

tinued to be robust , with volumes increasing

by nine percent on yoy basis. In market share

terms, the non-major ports increased their

share marginally from 34 percent of the total

cargo in 2009-10 to 35 percent in 2010-11.

Th e outlook for cargo growth remains favour-

able, given the robust domest ic demand from

key end-user indust ries. Th e main cargoes,

the volumes of which are expect ed to drive

growth, include coal; crude oil and containers.

Accordingly, port ventures with an exposure

to these cargo categories st and to gain.

While the favourable demand—supply

scenario in the Indian port sect or augurs

well for indust ry participants, from a cred-

it perspect ive ICRA believes that its rated

portfolio of companies is faced with certain

challenges the most prominent of which

include: project execution risks given that

many companies are in a moderate to large

scale capital expenditure mode; the harden-

ing interest rate environment; regulatory risks

emanating from an evolving policy environ-

ment; cargo concentration risk particularly

for entities having a high exposure to iron-

ore cargo given the ongoing uncertainties on

iron-ore mining act ivities in various st ates;

possibility of temporary capacity overhang in

some cargo segments and incremental risks

associated with expansion in scope of busi-

ness/inorganic growth.

BackgroundIndia’s long coast line of over 7,500 km

is home to the country’s 13 major ports and

around 200 non-major ports located along

the west ern and east ern corridors. While

the number of non-major ports is large, only

about one-third of them undertake regular

commercial operations; these ports are locat-

ed mainly in Gujarat, Andhra Pradesh, Goa,

and Maharashtra.

Th e trend is expect ed to gain tract ion

with the major ports increasingly moving to

a landlord/asset ownership model, allowing

the private sect or a dominant role in capacity

additions and port services and operations.

Cargo Trends & OutlookCargo traffi c at Indian ports increased to

883 million tonnes (mmt) in 2010-11 from

850 mmt in 2009-10. Th e lower yoy increase

in cargo at 4 percent in 2010-11 (14 percent

yoy growth in 2009-10) may be attributed

partly to the larger cargo base and partly to

the low growth (two percent yoy in 2010-11)

in the volume of cargo handled by the major

ports. Th e weak performance of the major


STUDY

ports followed mainly the decline in

volumes of one of the principal com-

modities, iron ore, by 13 percent yoy

to 87 mmt in 2010-11 from 100 mmt

in 2009-10 with iron ore exports being

banned in Karnataka. Th e non-ma-

jor ports on the other hand reported

a nine percent yoy increase in cargo

volumes and as a result gained market

share (35 percent in 2010-11 as against

34 percent in 2009-10).

Growth Estimates Among the major ports, Kandla in

Gujarat continued to lead in terms of

cargo volumes (82 mmt in 2010-11, at

three percent yoy growth) followed by

Vishakhapatnam in Andhra Pradesh

(68 mmt at four percent yoy growth).

While cargo volumes at all the major

ports increased in 2010-11, although

in single digits, the volumes at New

Mangalore and Paradip reported a

dip of 11 percent and two percent yoy

respect ively, primarily because of their

high exposure to iron ore. Among the

non-major ports, Mundra Port and

Special Economic Zone Limited locat-

ed in Gujarat was the largest operator

(52 mmt in 2010-11), followed by

Essar Ports (40 mmt) which has two

facilities at Vadinar and Hazira , both

located in the st ate of Gujarat.

By cargo mix, petroleum, oil &

lubricants (POL) continued to account

for the largest share of 32 percent

in 2010-11 (31 percent in 2009-10),

followed by containers (20 percent

against 18 percent). ICRA’s view on

cargo growth over the medium to long

term remains positive based on the

level of act ivities in the key end-user

indust ries. Going forward, growth of

traffi c at Indian ports is expect ed to

be driven mainly by higher volumes

of coal (to meet the requirements of

the large number of current and pro-

posed thermal power project s based on

imported coal); containers (given the

market under-penetration and poten-

tial for cost savings); crude oil and

POL (large upcoming refi nery capaci-

ty); fertilisers (st rong domest ic demand

and low self-suffi ciency); and st eel

(mega project s proposed in the east ern

part of the country).

Port MilestonesAccording to the est imates of the

Minist ry of Shipping (MoS), cargo

volumes in India are expect ed to breach

the one billion tonne mark in the cur-

rent fi scal (2011-12); the two billion

tonne mark by 2016-17 (seven-year

CAGR of 13 percent); and 2.4 billion

tonnes by 2019-20 (10-year CAGR of

11 percent). Growth at the non-major

ports is expect ed to outpace that at the

major ports, with the former command-

ing a 51 percent share of the total cargo

in a decade’s time. By composition, coal

(expect ed 10-year CAGR of 18 per-

cent) and containers (expect ed 10-year

CAGR of 15 percent) are expect ed to

drive much of the growth. Th us, port

ventures with a higher exposure to

these cargo categories are favourably

placed.

On the supply side, the Indian port

sect or has seen certain major mile-

st ones being reached in the recent past ,

including the commissioning of the fi rst

phase of operations at: International

Container Transhipment Terminal,

Vallarpadam; solid cargo port terminal,

Dahej; coal terminal, Mundra; bulk ter-

minal, Hazira; and a greenfi eld

port, Dhamra.

Th e ambitious National Maritime

Development Programme (NMDP)

has failed to live up to expect ations

because of the absence of various ena-

bling fact ors and is due to complete its

tenure in March 2012. To replace it,

the MoS has formulated the Maritime

Agenda 2010-20, outlining the next

decades’ programme for the develop-

ment of the Indian maritime sect or.

Three-Pronged StrategyAs a part of its eff orts to improve

the inst itutional framework for PPP

project s at major ports, the Central

Government const ituted a commit-

tee under the Chairmanship of BK

Chaturvedi in February 2010 to

review and recommend revisions in

the Model Concession Agreement

(MCA), which is the basic contract ual

Source: Indust ry Reports and ICRA’s Analysis

POL, 32%

Containers, 20%

Other Cargo, 17%

Iron-ore, 15%

Fertilisers & Fertiliser Raw

Materials , 4%

Coal, 13%

Cargo Mix of Major Ports - 2010-11


STUDY

framework governing the PPP model

in India. Th e key recommendations

of the committee (made in September

2010) include the following: A three-

pronged st rategy may be adopted to

improve the tariff setting mecha-

nism as follows: st reamlining TAMP

procedures and building in-house

capacity in the short term; delegat-

ing the tariff setting funct ion to the

respect ive port trust s over the medi-

um term and allowing market forces

to determine tariff s over the long term

with the role of the port authorities

being limited to oversight.

While ICRA does not expect the

viability of port project s to be adversely

impact ed by the additional land cost ,

as that would be governed more by

other st rategic considerations such as

cargo potential, extent of handling

infrast ruct ure, and draught, the higher

land cost is likely to lead to higher cap-

ital intensity, which in turn would lead

to some moderation in the return on

capital employed.

Capacity ExpansionTh e Maritime Agenda envisages

a cumulative invest ment of around

`2,774 billion in the port sect or over

the next 10 years in three phases.

Th e non-major ports are expect ed to

account for 61 percent of the pro-

posed invest ment, and the major ports

for the rest . Capacity expansion by

way of const ruct ion of new berths

and jetties accounts for 65 percent of

the total outlay, and other support

works for the rest . With the envis-

aged capital expenditure being made,

the capacity of the port sect or would

likely increase to over 3 billion tonnes

by 2019-20; the non-major ports

would account for 53 percent of the

enhanced capacity and the major ones

for the rest 47 percent. Th e project ed

capacity expansion and the expect ed

cargo growth would bring down the

utilisation levels at the major ports

from the current 90 percent levels to

around 80 percent, paving the path

for better service.

Key policies and framework agree-

ments to be reviewed periodically and

modifi ed from time-to-time include

the policy for land use, model docu-

ments like RFQ , RFP and MCA and

the guidelines for fi xing of tariff s.

Also, a regulator is to be est ablished

to oversee the act ivities and tariff s of

the non-major ports. Greater focus is

to be placed on environmental aspect s

and an environment clearance mech-

anism to be inst ituted to expedite

progress of project s.

Hub PortsHub ports to be developed to receive

13,500+ TEU2 containerships; at

least two such hubs to be est ablished

on the east ern coast (Chennai and

Visakhapatnam) and two on the west

coast (Jawaharlal Nehru and Cochin

ports).

A specialised Maritime Finance

Corporation is to be formed with the

equity of ports and fi nancial inst itu-

tions to appraise and fund port project s,

given their specialised nature and

requirements.

Progress & PoliciesA special purpose vehicle, Indian

Ports’ Global, is to be set up to make

invest ments in ports overseas. A mon-

itoring and feedback mechanism to be

inst ituted to track progress

at the level of the ports and at the gov-

ernment‘s level so that timely act ion on

slippages in progress and implementa-

tion can be taken.

Apart from the above, another

recently formulated policy is the Policy

for Prevention of Monopoly at Major

Ports, 2010, which seeks to rest rain

operators with exist ing facilities at a

port from bidding for similar terminal

development project s within the same

port and/or within a radius of 100 km

of it. Th e intention is to allow develop-

ment of healthy market competition

and prevent capacity concentration,

which may impact pricing and per-

formance st andards. �

(Courtesy : ICRA Research)

-100 200 300 400 500 600 700 800 900

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

424 464 519 531 561 570

155 186203 213

289 314

In M

illio

n To

nnes

Major Ports Non-Major PortsSource: Indust ry Reports and ICRA’s Analysis

Volumes at indian ports


PRODUCTS

Bottle Type JackVANJAX Sales, off ers a complete range of equipment for automobiles as well as two-wheel-ers servicing garage workshops. Besides bottle jacks from two tonne upto 50 tonne required by individual motorist s

or for heavy earth moving machineries. Th e Chennai-based company also off ers hydraulic trolley (fl oor) jacks for small, medium and large garages from two tonne upto 10 tonne, hydraulic equipment for repairing damaged cars due to acci-dents and many other useful items indispensable for every garage owner whether small, medium or large.

Vanjax Sales Phone : 0091- 44 - 4282 1000/ 2625 5300/ 2625 4875Fax: 0091- 44 - 4598 [email protected]@vanjax.com

Hydraulic Floor Portable (manually Towable) CranesVANJAX Sales, based in Chennai manufact ures hydraulic fl oor portable (manu-ally towable) cranes in light and heavy duty types. Th ey have all st eel fabri-cated frames, and are available in st andard capacities ranging from 1,000 kg upto 2,000 kg, or tailor-made to individual cust omer’s requirement upto 5,000 kg. Highly suited for automobile garages and tool rooms, these portable hydraulic fl oor cranes are capable of versatile uses in almost all indust rial est ablishments small, medium or large.

Vanjax SalesPhone : 0091- 44 - 4282 1000/ 2625 5300/ 2625 4875Fax: 0091- 44 - 4598 [email protected]@vanjax.com

Vanjax Hydraulic Workshop PressesAvailable In Capacity 12 tonne (vxhwp-51201) and 20 tonne (vxhwp-52002), they have been found to be most useful for both inst alling and removing/disman-tling bearings / pinions / bushes, as well as various other bending or st raight-ening jobs in auto servicing garage workshops.

Vanjax SalesPhone: 0091- 44 - 4282 1000/ 2625 5300/ 2625 4875Fax: 0091- 44 - 4598 [email protected]@vanjax.com

Pneumatic Control ValvesDARLING Muesco India off ers globe st yle pneumatic control valves that are available for any control application. Built to take the punishment imparted by many processes, including extreme pres-sure drops, these valves are backed by the most respect ed name in the valve indust ry. In addition to the st andard models, also available are valves to cust omer specifi cations. Th e range of control valves includes globe type, angle type, ball type, butterfl y type, diaphragm type, etc. Th e control valves are available in

pneumatic diaphragm act uator, single-phase elect ric act ua-tor, three-phase elect ric act uator, pneumatic rotary act uators in case of ball and butterfl y valves. Range of material selec-tion for valve body/bonnet and trim are available to suit specifi c application valves in diff erent model and are available up to 1500 class in fl anged end butt weld and socket weld connect ion. Special trim form, such as low noise trim, anti-cavitation trim and reduced trim are available in almost all models of the control valves. Varieties of accessories are also available to compliment the working of control valves.

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PRODUCTS

The High Street Collection

THE High Street Collect ion off ers genuine Haiton Leatherin a range of textures and colours that are high on design and richness. It’s all it takes to transform your interi-ors to one that speaks high fashion. You can be the designer. It’s your car. So choose what you’d like to have inside. In addition to the wide range on off er, Haiton also allows you the freedom to create your own concepts. Mix & Match and choose the colour, texture and design of your liking and they will fashion it for your car. It’s personalisation like never before.

Hilton Furnishing SolutionsMobile:+91 95661 11551E-mail: [email protected]

Wheel Balancers

PROFESSIONAL wheel balancer with 15.5” TFT moni-tor suitable for 10”-24” rim dia and maximum 65 kg wheel weight.

• Suitable for Car and LCV wheels• TFT Monitor• Static (Single plane) and Dynamic (Two plane) balancing• Simultaneous display of Inner and Outer plane results• Two modes of measurement - Normal & Fine• Five modes of Alloy wheel funct ions• Self checking, on-line ERROR display facility• Dimension setting in “INCH” or “MM”• Unit conversion in “grams” / “ounces”• Self calibration• Automatic dist ance input mechanism• Mid-centering device for positioning and Rim accuracy• Quick change lock nut to ensure fast mounting & removal

of wheels• Automatic st art with wheel guard closure• Unbalance recalculation without wheel run on input

parameters change

Manatec Model No : WB-VL-65Phone: Ph: +91 413 2248926 /Fax : +91 413 2243222E-mail : [email protected] / [email protected]

Clim SprayCLIM Spray is eff ect ive in cleaning the air inside the vehicle. Th e solution purifi es the air, dest roys bad smells on the covered surfaces (carpet, seats and roof lining etc), and perfumes discretely inside your vehicle. Simple, the complete treatment takes less than 15 mn due to its automatic diff usion mode. Phone : 91 4 422 505 000

Bike Washing System SWITCH over to modern, st ate-of-the-art washing of two-three wheelers. Junk the primitive tap-pump-pipe-nozzle ensemble. Bike Washers’ long arm nozzles and 100 bar water jet dislodge dirt from every crevice.

Metafab IndiaPhone: + 0129 - 4026897 / 4027897, +0129 - 2239211 / 2234410 / 2230276E-mail: [email protected], [email protected] Website: www.metafabindia.com


PRODUCTS

Electric Fuel PumpsTHE funct ion of the fuel pump is to propel the fuel tank to the engine. Valeo complet-ed its mechanical fuel pumps range by launching more than 230 new elect ric fuel pumps part numbers. Th e new Valeo fuel pumps off er includes all fuel pump technologies on the market.

Th e elect rical fuel pumps completely immerged in the tank off er many advantages:

- Better lubrifi cation - Less noise and vibrations- Improved refrigerationTh e number of passenger vehicles equipped with elect rical

fuel pumps has been rising exponentially since the introduc-tion of this technology and represents the majority of vehicles on the car park today. Th is new market represents a sales opportunity for independent professional repairers.

ValeoPhone : 91 4 422 505 000

Tyre ChangersTHE side swinging mounting arm enables the user to inst all it near the wall occupying very less space. Th e specially designed bead breaker handles rims very gently and safely.

• Suitable for Car and

LCV Tyres• Side swing mounting

arm• Pneumatic Twin

Cylinders for fi rm clamping

• Four jaw self centering chuck• Alloy wheel plast ic protect or• Bead breaking by pneumatically operated cylinders• Clockwise and Anticlockwise rotation of turn table using

Elect ric Motor• Built-in FRL (Filter, Regulator and Lubricator)• Motorcycle adopter (Optional)

ManatecModel No: TC-XL-40Phone: +91 413 2248926 Fax : +91 413 2243222E-mail : [email protected] / [email protected]

Car Covers THE company is engaged in manufact uring and exporting of car covers. Th eir car covers are manu-fact ured with very high quality fabric which is highly durable and longer life. Th ey off er premium quality silver color car body covers for all variants and models of the cars. Th ese car covers protect

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Choudhry EnterprisesPhone : +(91)-(11)-23910142/ 65159723 Mo : +(91)-9717032558/ 9313208022Email: [email protected] /[email protected]

Seat CoversTHE Platina 900 series seat covers are sol-vent free, which makes them eco friendly. Th e topcoat is made of water-based lacquer to make it skin friend-lier and coated with lacquer to improve the life of the seat cover.

Th e new series of seat cover has properties like anti-fungus, anti-bact erial, UV

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Choudhry EnterprisesPhone : +(91)-(11)-23910142/ 65159723 Mo : +(91)-9717032558/ 9313208022Email: [email protected] / [email protected]


PRODUCTS

Euro III / IV Compliant Heat ExchangerLeading the way in Euro III/Euro IV migration

ALKRAFT’S high performance radiators and intercoolers are among the fi rst in India that comply with Euro III/Euro IV (BS III/BS IV) emission norms. Th eir product s feature unique core designs that are made using super-long-life alloys for enhanced corrosion resist ance and st ruct ural durability. Th e special designs enhance heat transfer performance, thus enabling cleaner combust ion, lower carbon emissions and better overall performance. Th e wide range of core confi gurations cover all automotive applications, and enable them to successfully migrate to Euro III and IV st andards without eff ect ing major chang-es to design parameters.

Alkraft Thermotechnologies Phone : +91-44-26258750 / 90Fax : +91-44-26258770Email: [email protected]

Charge Air CoolersALKRAFT has designed and manufac-tured high performance intercoolers ever since it produced the fi rst Aluminium intercooler in India. Th eir capabilities cut across diff erent technologies and design variations like extruded tubes, tube with inner fi ns, plate and bar const ruct ion, drawn cup charge air coolers, and spe-cially engineered high temperature plast ic header tanks. Th e higher heat dissipation capacity and better performance to weight

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Alkraft ThermotechnologiesPhone : +91-44-26258750 / 90Fax : +91-44-26258770Email: [email protected]


PRODUCTS

Electrohydraulic Servovalves PARKER Aerospace designs and manufact ures the highly reliable Jet-Pipe-based elect ro-hydraulic servovalves (EHSVs). Th ese EHSVs are used to con-trol position, velocity, and force in a variety of hydraulic, fuel syst ems, and engine con-trol applications for aerospace and derivative markets. Features include: reliability (single inlet fi rst st age); contamination-resist ant; low sensitivity to vibration & shock; st ability; null bias st ability; low mainte-nance; servo-controlled second st age; wide dynamic range; dry torque motor; and reduced life cycle cost . Applications are in commercial transports, military fi ghters & transports, helicopters, unmanned air vehicles, launch vehicles, missiles, main gear & nose wheel st eering syst ems, auto brake mod-ules, engine control, etc.

Parker Hanni� n India, Navi Mumbai, MaharashtraTel: 022-6513 7081, Fax: 022-2768 6841Email: [email protected], Website: www.parker.com

Check ValvesFLUDEN check valves off ered by Fluid Power Engineers are used in hydraulic syst ems to check the fl ow in one direct ion and allow fl ow in the oppo-site direct ion. Th ese valves are const ruct -

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Fluid Power Engineers, Ahmedabad, GujaratTel: 079-2289 1665, Fax: 079-2289 1666Mob: 09426068483Email: info@fl uden.com, Website: www.fl uden.comAn ISO 9001:2000 Certified Company

Pressure Reducing ValvesFLOCON Syst ems manufact ures and off ers pressure reducing valves that are automatic control valves designed to reduce a higher inlet pressure to a lower const ant outlet pressure regardless of fl uct uating fl ow rates and/or varying inlet pressure. Th ese valves are pilot controlled, hydraulically operated, diaphragm act u-ated globe valves in either the oblique (Y) or angle pattern design. Valve diff erential

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Flocon Systems, Dist Thiruvallur, Tamil NaduTel: 044-2792 2819/2990, Fax: 044-2792 2390Email: fl [email protected], Website: www.fl oconsyst emsindia.com

Mini PumpsROTOMAC Indust ries manu-fact ures and off ers domest ic mul-ti-purpose mini pumps. Th e dou-bled-walled st ator design eliminates need for universal jointsor coupling rods. Th ese pumps are available in cost -eff ect ive, portable-closed coupled (motorised) design or bare shaftdesign for fl exibility of use of drives, for eg, mechanicalspeed variators, diesel engines, etc. Th ey can be adopted for solar power motors. Th e mini pumps are suitable for metering, dosing with 90 to 95 per cent accuracy. Th ey are ideal pumps for the European market, especially UK. Domest ic applications include cellar drainage, septic tank cesspit emptying, garden sprinklersyst ems irrigation, water supply sampling from wells, st reams and rivers. Indust rial applications are general-purpose pumps for diesel, lubricating oil, water-based inks, vegetable oils, plating solutions, other non-aggressive chemicals, non corrosive liquids with medium viscosity, for eg, fuel oil, thin molasses, fl uids with suspended solids, for eg, dirty water from cesspools, domest ic water transfer, hot water circulation.

Rotomac Industries (P, Kanpur, Uttar PradeshTel: 0512-269 1704, Fax: 0512-269 1706Email: [email protected]: www.rotomacpump.com

Pneumatic Tyre SpreaderTHE air powered tyre spreader (ped-est al base) is designed for clamping, spreading and lifting car tyres during repair. One can also do tyre inspect ion cutting, buffi ng with dust extract ion, insert tubes and patching. Metafab Engineers (India)Model No: car tyre spreader Mt-850-pts-I

Phone: + 0129 - 4026897 / 4027897, +0129 - 2239211 / 2234410 / 2230276E-mail: [email protected], [email protected] Website: www.metafabindia.com


PRODUCTS

All-Purpose Foam CleanersPidilite off ers Cyclo MaxClean all-purpose foam cleaners that contain specialty deter-gents, which clean and rest ore colour and appearance. With deep-cleaning foaming act ion these foam cleaners work as great as spot carpet cleaners. Boost ed with orange oil the foam cleaners are natural cleaners and have a pleasant citrus fragrance. Th ey remove bad odours from the seat, covers, and carpets. Cyclo MaxClean foam cleaners can be used on plast ic, vinyl, carpet and fabric. It is avail-able in packaged form of 624 gms.

Pidilite Industries, Mumbai 400 059Tel: 022-3308 7000, Fax: 022-2835 7700Email: [email protected], Website: www.pidilite.com

Automotive BatteriesRR Indust ries off ers a wide range of automotive batteries (DIN 44) that are manufact ured from high grade quality raw materials. Th ese batteries can be cust omised as per cust omers’ specifi cations. Th e automotive batteries are widely known for their durability and quality. Th ese can be availed at indust rial leading price (claims the company).

R R Industries, Bengaluru 560 021.Tel: 080-23126827, Mob: 09448437845Email: [email protected], Website: www.rrmicrobatteries.com, Certifi cation: An ISI 9001:2008 Certifi ed Company

Stacker Parking SystemsKamex Mechanised Parking off ers st acker parking syst ems for two cars. Th e parking syst ems are equipped with a single platform, allowing long-term parking on the upper level and short-term parking on the lower one. For use of the upper platform vehicle from the lower parking space is removed. Th ese syst ems are suitable for medium & large buildings and these can also be inst alled into exist ing buildings. A lengthwise or breath wise arrangement may be select ed according to the condition of the site. Hydraulic cylinders are used for lifting the pallet. Pallets are made using 2 mm thick galvanised st eel to prevent defl ect ion. Th e pallets are provided with st opper to prevent move-ment of cars during pallet movement. Over-travel limit switches are fi tted to prevent over-travel of the pallets. Emergency st op switch is inst alled inside the operating level. If the switch is act ivated in emergency, the power is cutoff the main motor and all operations are st opped.

Kamex Mechanised Parking, Jaipur 302 018Tel: 0141-6511501, Fax: 0141-2707856Email: contact @kamexparking.comcontact @kamexparking.com, Website: www.kamexparking.com

Industrial & Automobile KeysJagat Engineers off ers indust rial and automobile keys of all types, like square, fl at and par-allel, woodruff , Gib-head, etc, as per IS:2048, 2292, 2293, 2294 and 2710, in DIN06881 to 6888, ASTM and BS-46, part I. Sizes range from 3 x 3 mm sq to 50 x 28 mm fl at parallel keys with all sides ground to required tolerance and well chamfered with all over for ease of

assemble for 10 mm to 300 mm shaft key ways. Th e keys are used for transmitting loads in elect ric motors, pumps, couplings, pulleys, valves, textile machineries, agricultural machineries, chemical plants, machine tools of all types and other rotating parts. Woodruff keys are used in compressors, two-wheelers, three-wheelers, cars, trucks, tract ors and gearboxes in all types of machineries. Special keys are made from st ainless st eel, EN-24, EN-19 materials for shock loading transmissions apart from st andard EN-8/9 keys with high tensile test ed st eel material. Maintenance purpose kits are also available for quick repairs and breakdown jobs.

Jagat Engineers, Vadodara 390 010Tel: 0265-264 2347, Fax: 0265-264 3347

On page 15 of the Oct ober 2011 issue, the name of the company Mahle has been incorrect ly mentioned. Th e error is deeply regretted.

Corrigendum


ADVERTISERS’ LIST

Pg No. Advertiser ...........................................Tel .................................E-mail ............................................Website

53 .......ADEA Awards ........................................+91-22-30034650 [email protected] ...... www.adea.in

19 .......ARO Equipments Pvt Ltd ......................+91-124-4585400 [email protected] ......... www.aroequipments.com

11 .......Bosch Limited ......................................+91-80-22999228 .................................................................. www.boschindia.com

6 .........Confederation Of Indian Industry .......+91-124-4013871 ........... [email protected] ..................... www.autoexpo.in

27 .......Eastman Cast & Forge Ltd ....................+91-161-2511440 [email protected]

4,8 ......Engineering Expo .................................+91-9819552270 [email protected] .............. www.engg-expo.com

BC ...... Federal Mogul ......................................+91-124-4784530 [email protected] ..... www.federalmogul.com

49,51 .. Federation Of Automobile Dealers Associations ..+91-11-23320095 [email protected] ......................... www.fadaweb.com

45 .......KYB Asia Co Ltd ....................................+91-9871687888 [email protected] ........................... www.kyba.co.th

BIC ..... Lubrizol Advanced Materials India Pvt Ltd ..+91-22-66027800 [email protected] .............. www.lubrizol.com/engineeredpolymers

3 .........Madhus Garage Eqpts ..........................+91-80-26660656 [email protected] .......... www.madhusindia.com

21 ....... Shriram Pistons & Rings Ltd ................+91-11-23315941 [email protected]

FIC ...... Sushma Industries ...............................+91-80-28397463 [email protected] www.sushmaindustries.com

� Our consistent advertisers

DATA


S

ept.

2011

12

0925

7 21

8724

7 13

6251

54

6959

20

8172

14

7299

59

784

1659

0 14

793

1094

099

7501

09

3653

029

5633

1 10

0799

20

S

ept.

2010

13

6133

4 22

5510

4 13

2018

51

5008

21

9578

15

8503

66

092

2589

8 15

523

1037

464

6642

76

3570

885

5749

4 10

0791

77

%

Cha

nge

Sep

t. 11

ove

r

(-)1

1%

(-)3

%

3%

6%

(-)5

%

(-)7

%

(-)1

0%

(-)3

6%

(-)5

%

5%

13%

2%

(-

)2%

0%

Sep

t. 10

(Pro

dn.)

A

vg. M

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. Prd

n.

(6 M

onth

s) in

F.Y

. 12

9987

1 22

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8 12

4573

56

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23

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16

2156

76

602

2180

2 16

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1125

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38

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862

5593

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3293

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32

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Sep

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72

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9 49

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0 42

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7 78

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3 56

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61

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2010

(Exp

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ort

1846

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6878

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66

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0 18

313

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356

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(6

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in F

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2011

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Apr

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1459

16

8691

5 73

10

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26

687

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t. (1

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PRODUCT INDEX

A/C service equipment .......................................................... 3

ADEA - Automotive Dealership Excellence Awards ............... 53

Aftermarket components ..................................................... 27

Air-conditioning equipment ................................................. 19

Alternatives........................................................................... 11

Auto Expo-2012 .................................................................... 6

Batteries ............................................................................... 11

Bottle cap torque testing systems......................................... FIC

Brake pads ............................................................................ 11

Brake testing equipment ...................................................... 3

Clutch plates & cover assemblies .......................................... 11

Collision repair systems ........................................................ 3

Crimp testers ........................................................................ FIC

EngineeringExpo exhibitions ................................................ 4

Exhibitions ............................................................................ 4

Filters .................................................................................... 11

Force & pressure calibration & testing equipment ............... FIC

Force gauges ......................................................................... FIC

Gas analysers ........................................................................ 3

Gasoline systems .................................................................. 11

Gear pumps .......................................................................... 11

Horns .................................................................................... 11

Industrial products ............................................................... 27

Lifting equipment ................................................................. 19

Lighting equipment .............................................................. 11

Lubricants ............................................................................. 11

Motor testing systems ........................................................... FIC

Pistons & pistons rings ......................................................... 21

Pistons .................................................................................. BC

Pressure sensors and indicators ........................................... FIC

Relays ................................................................................... 11

Socket observers ................................................................... 45

Spark plugs ........................................................................... 11

Spot welding equipment ...................................................... 3

Spring testers ........................................................................ FIC

Starter motors ...................................................................... 11

Tensile testing machines....................................................... FIC

Thermoplastic polyurethanes ............................................... BIC

Torque gauges ...................................................................... FIC

Torque tool testers................................................................ FIC

Torque .................................................................................. FIC

Tyre care equipment ............................................................ 19

Tyre changers ....................................................................... 3

Tyre infl ation equipment ...................................................... 3

Wheel aligners ...................................................................... 3

Wheel balancers ................................................................... 3

Wiper blades ......................................................................... 11

Product ................................................................................Pg No. Product ................................................................................Pg No.

FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

From boats to planes to passenger

cars, Estane TPUs will offer you

solutions to keep your business moving.

In the transportation industry, Estane®

Thermoplastic Polyurethanes are widely used

for their excellent properties such as flexibility

over a wide temperature range, optical clarity,

flame retardancy, adhesion to various substrates,

superior abrasion resistance and extreme durability.

Applications

ABS Sensor Cable/Grommet

Shift Lever Skin

Fuel Bowl

Paint Protection Film

Dust Cover/Driveshaft Boot

Co-extruded Interior Parts

Sealing Material

Rail Pad

Estane® TPUs provide:

Abrasion Resistance

Elongation

Superior Tear Strength

Excellent Tensile Strength

Ease of Processing

© The Lubrizol Corporation 2011, all rights reserved.® Estane is a registered trademark of The Lubrizol Corporation.

Purchase it locally from our newly opened warehouse in

Mumbai!

Dust C

Co-e

Estan

For more information email us at

[email protected] or visit our web site.

www.lubrizol.com/engineeredpolymers

aftermarket - december 2011

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