COO Desk

Quarterly News Letter

November 2013

Issue - 04

RACE INNOVATIONS

www.raceinnovations.in

NEWS LETTER

The Indian medium and heavy commercial vehicles (M&HCV, above 7.5 tons) market is currently experiencing a demand correction with a decline of 29.8% during the second quarter (Q2) of 2013-14 (July-September, 2013) compared to the second quarter (Q2) of 2012-13. However at RACE we have been blessed to witness a serene performance in sales with revenue increase by 11.4% under export sales and 8.6% under local sales compared to earlier financial year (“F.Y”) (Jul - Sep’12). I am happy that the current customer base has been augmented by 3 new additions which include two OEM’s who express the confidence level with market players. I expect revenue improvement for next quarter to increase by 20% compared to current quarter levels. Further an addition of financial support services like due diligence, financial auditing, merger and JV support at RACE is a shot in the arm which enables to give more confidence to our existing cliental network. Our “Intellect” team has strengthened their positions in offering research and custom consulting for some of the major Indian OEM’s. Our in depth field knowledge on various Truck, Trailer and Bus applications and expertise inputs are making the OEM’s exited in understanding the real time facts and arriving at suitable solutions / products for future. Substantial inroads have been made in the technic team deliverables; our recent delivery includes a study on Transit impact analysis which helps clients to understand behavior of the cargo during transportation on various road conditions.

Further it helps to design and implement suitable load securing, trailer design modifications to suit cargo. Currently 60% of the cargo in India is been moved in open form with no proper covering, unlike in other developing countries where the cargo is in completely covered form. RACE had propagated this idea among the industries and other market players where we have developed a unique solution in the form of curtain siders and collapsible curtains for vehicles to move their cargo in covered form. Our manufacturing support group and Technic team are in the process of developing a proto unit for Steel coil

transportation in covered form which in my opinion should be one of the long awaited solutions in Indian markets.

With regard to our LBI (Location based intelligence) Services, we are in pursuit with Ministry of Roadways to become one of the empanelled survey consultants who will do all feasibility studies for over dimensional / Over Weight cargo. This would be a major breakthrough for the team to be listed as

empanelled survey consultants. RACE CONNECT Program is gaining more traction among international clients who are keen on Indian market. Some of our international clients are completely supported starting with market feasibility, interface engineering, market know-how and assistance on product adaptation (localization) capabilities, financial support services, statutory & government related establishment support which will enable the global automotive clients to connect with the Indian counterparts and establishing their foot print in the Indian market at a quicker

pace. They feel this is the most cost effective solution to enter Indian market in a more quicker phase with risks completely mitigated , compared to the traditional methods. I extend my heartfelt gratitude towards the support given by Motor India and TBB Magazines in our new initiatives. I thank once again all our customers, employees, industries, investors and other stakeholders for the patronage shown. Rajesh COO

Our Clients

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x Our New Hire

ROLL OVER ANALYSIS

TESTIMONIAL

Mr.JanBor Co CEO,

Telma Global

“Drive for Excellence is not just

an Slogan with RACE, is within

their DNA, it is in their blood

stream & they are absolutely

the right partner to come &

establish yourself in India but

also once established to take

over certain services.

RACE made it possible for

Telma to enter into the market,

I would guess around 3 to 4

years earlier than we would

have done by our own force as

well as with our own energy.

Telma group is not the only

company who is looking at

India for growth & sustainable

economics, they will be other

companies following us & I

would recommend on my point

of view specifically linked to our

Industry that you contact RACE

& get to know the team,

innovators, young, bright,

energetic but also on other

hand skilled & driven by

experience”

RACE is now capable of performing a complete bus roll over test as per AIS-031 standard. In this, RACE provides solutions like super structure behavior during a roll over. Analysis of load bearing members in super structures, identification of weakest elements and joints, design optimization of structure materials etc. are the primary areas of inference. This analysis is much essential for the bus body builders where bus structures are analysed to study its behavior during an impact or a roller over.

Digital proto typing becomes an essential operation in product development for visualization and imageryrepresentation of the product. For validation of the design, computer aided engineering is applied in order to avoid real time proto typing of products. This in turn reduces the time taken for real time prototyping and eliminates the field testing operation and cost. RACE has now gotten a firm grip in CAE (Computer Aided Engineering) solutions and in depth analysis for optimization and validation of designs in product development.

RACE provides solution for the below types of analysis,

Static stress analysis or linear static analysis is generally a part wise analysis. Linear static analysis gives essential outputs such as factor of safety calculations, part/ assembly stress analysis and contact stress computations. This analysis is mostly useful for structural analysis in which deflections and stiffness calculations are computedin order todevelop a safer design.RACE is engaged in various projects involving trailer structures, chassis analysis etc. using linear static analysis.

Despite the economic slowdown and poor investor confidence, Our Intellect team has registered strongest growth during the last two quarters of 2012-13.

LINEAR STATIC STRESS

ANALYSIS

Linear static analysis

Non-linear analysis

Fatigue analysis

Dynamic analysis

Roll over analysis

Design optimization

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Study of dynamic behavior hasbecome a demand in the market. This is developedto provide solutions based on • Frequency response analysis • Harmonic response analysis • Random Vibration Calculations • Dynamic Stress Computations This analysis gives almost a clear picture of an object’s behavior in real time environment.

DYNAMIC ANALYSIS

NON-LINEAR ANALYSIS Non-linear analysis helps understand the behavior of an object after a point of permanent deformation. This is a study ofnon-linear changes incurred by the material as well as geometrical displacements and the resulting stress distributions. This type of analysis gives a clear picture during the changeover phase from the elastic stagetothe plastic stage.

Determining the Product lifecycle is one of the important processes in the product development. RACE conducts fatigue analysis which is capable of providing solutions based on • Remaining Life Analysis (RLA ) • Durability Analysis • Failure Prediction Analysis • High Cycle Fatigue Calculations

FATIGUE ANALYSIS

DESIGN OPTIMIZATION

Optimization and cost reduction becomes an immense feature in the product development. RACE always looks into an innovative and optimized design in order to provide a market wining product. Using finite element analysis design optimization is carried out for • CAD Geometries • Weight Reductions • Value Addition & Value Engineering

RACE INNOVATIONS Page 4 of 8

New Clients

The company has started off with a new service wing which will focus on rendering financial services as a separate service portfolio to our esteemed clients. In this context we assure our quality services and look forward for support and cooperation from our client and network of contacts. These products includes, cost projection & estimation , finance feasibility report, cash flow & commercial benchmarking , business plan , fund collection support & project funding, due diligence , merger , joint venture support, domain specific internal audit, company formation and statutory compliance in India. We understand financial services challenges and technology-based solutions and our focus will be on solutions tailored to our client needs.

Financial Info

TESTIMONIAL

Mr.R. Natarajan

Managing Editor, Motor India

Magazine

“RACE is probably the only

independent company in India

with an in-depth understanding

of the industry and offering

specialized solutions in the

area of commercial vehicle

application design and

engineering. RACE has also

been successful in providing a

ready platform for global

companies who would like to

make an entry into the Indian

market (ex. Telma). We are

very confident that RACE will

play a key role in the evolution

of commercial vehicle industry

in India in the next decade.”

My experience with

RACE

Vijay Anand

Research intern

“RACE Innovations has helped

learn a lot about the present commercial vehicle market and also in enriching my knowledge on vehicle trade, top manufacturers, and about new technologies used in Automotives. The internship here thus far has also improved my research as well as presentation skills. I am looking forward to learn moreabout commercial vehicle market through RACE in future.”

Telma India Works close with Global Applications

TRIPL supports global Telma team by working close with foreign customers. Last quarter TRIPL was working with RHT in Mauritius, who seek Telma for their entire fleet which has Nissan, Ashok Leyland Panther & Mini. TRIPL worked with CCC Aero fluid Company in Thailand & offered retarder for their transmission test stand to test the transmission bearing. Complete duty cycle has been studied & proposed retarder accordingly. New customers in Harare, Zimbabwe who are in the process of manufacturing buses like Ashok Leyland, showed interest in fitting Telma retarders. AD72-00 axial retarder is being offered.

Telma India to offer retarder for Corona MIDI buses TRIPL has initiated project discussion with Corona Bus Manufactures for their new MIDI bus application. Generally Corona goes with hydraulic retarders for their bus application, however currently no hydraulic solution is available in MIDI bus models fitted with Allison AT & Meritor axle. In addition to this, frequent maintenance & break down issues with hydraulic retarders have forced them to go with new option.

Telma India trained Ashok Leyland’s body builder IRIZAR TVS

TRIPL aftermarket team trained IRIZAR TVS in Trichy who build body for Ashok Leyland’s export buses. TRIPL provided training on Telma installations, functions & troubleshooting. These really helped AL’s export buses which are directly moved from bodybuilding to its customer place without any malfunction.

Unlike its competition, Telma induction brakes being perfect-fit for sub-tropical climatic conditions of India are immune to ill-effects of temperature and pressure. As an added benefit, focal retarders mount directly on Meritor axle making it the best choice for this model. After thorough understanding of the application & relevant approval from Meritor global & local team, Telma is all set to supply retarders to Corona MIDI bus applications.

RACE INNOVATIONS

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Volvo Asia bus fitted with Telma – Encouraging

Field Results

It has been a year since Volvo Asia buses were fitted Telma retarders being smoothly operated in various parts of India. During our recent performance mapping survey with Volvo customers, the results were found to be very encouraging. After covering more than 2.5 Lakhs Kms, There have been no reports of single retarder issue. Not to mention the retarders were maintenance free so far. Brake linings are still expected to cover an additional one lakh Kms.

There has also been a mileage gain of 0.5 km per liter. Volvo customers were extremely delighted with the outcome compared to hydraulic retarders who required frequent service & maintenance.

Inland World logistics appreciated RACE’s

Efforts

Based on the request from IWLP, RACE completed the route survey from Pune to Cochin around 1900 kms in 7 days including the final report. This was highly appreciated by the customer whereMr. Krishnakant Sharma – Project Head, Mumbai division quoted “We have gone through the report and found it very impressive. We really appreciate the effort you put and completed the survey Ex. Pune to Kochi in very short span of time of 5 days and delivered the soft copy in 7 days. You have done the recommendable job”

New advanced LBI route survey report will have

In depth analysis with improved presentation and detailing

Pictorial representation of recommendations

Details of loading and unloading procedure and more

RACE INNOVATIONS Page 6 of 8

RACE INNOVATIONS

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Employee – Fun & Events

Robin Manoz Kumar Nishok

“Manozkumar says, “When I joined Race

as a sales engineer, it was a completely

new environment and a refreshing

platform to work on. Working with RACE

has given me an immense knowledge

and recognition amidst Indian vehicle

OEM’s. I thank RACE for giving me an

opportunity to prove myself in such a

niche platform and for giving such a

boost to my career in a short time. I

wish to travel miles with RACE to build

success stories”

“We (RACE Team) are in an ambitious growth path of establishing ourselves as an out and out Strategic Growth Partner by attempting to associate with the OEMs in every stratum of their operations. For this we are constantly honing our expertise and increasing our foothold in the market to develop pragmatic and empirical solutions that will help our clients enhance their revenue as well as margins. I feel blessed to be the part of an aspiring and driven team like this and the learning I have received thus far has been immense. Each and every one of us here ismotivated to take RACE to greater heights.”

“Manager Design engineer,

Nishoksays, “Unlike my past

experience where I used to do cyclic

tasks, RACE has helped me leverage

my skills from various sectors of

engineering, giving me a broad

outlook on the market. RACE certainly

has given me many opportunities to

enrich my skills, think out of box and

deliver results beyond my ability.

Driven by motivation, passion and

entrepreneurship, every individual in

RACE is strongly built with

individuality and interpersonal skills.

RACE is the right place for young and

talented individuals who strive to

innovate and move ahead in their

career”

Race goes on half yearly team meet Birthday celebration

Page 8 of 8 RACE INNOVATIONS

RACE INNOVATIONS PVT LTD Eden Plaza,F1, New No.165, Perambur Barracks Rd,Purasawalkam, Chennai - 600 007,

Tamil Nadu,India. Phone: 044 42834054 Email: info@raceinnovations.inWebsite: www.raceinnovations.in Copyrights © 2012 RACE INNOVATIONS PVT LTD All Rights Reserved.

Race adopted an orbiting at part of corporate social responsibility