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AUTOMOTIVE IndianAutomotiveSupplyChain  ADiscussionPaper INDUSTRIAL MARKETS

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8/3/2019 Indian Automotive Supply Chain

http://slidepdf.com/reader/full/indian-automotive-supply-chain 1/17

AUTOMOTIVE

IndianAutomotiveSupplyChain ADiscussionPaper 

INDUSTRIAL MARKETS

8/3/2019 Indian Automotive Supply Chain

http://slidepdf.com/reader/full/indian-automotive-supply-chain 2/17

Tableofcontents 

Background  1

SurveyFindings  2Integratingtheend-to-endsupplychainisthekeychallengeintheIndianauto industrytoday  2

Outsourcingofsupplychainactivitieswillincrease  5

Needforglobalsupplychainmanagementcapabilitiesbecomingsignificant  7

Focusareasforthefuture  10

Conclusion  12

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

8/3/2019 Indian Automotive Supply Chain

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IndianAutomotiveSupplyChain 1 

Background 

TheautomotiveindustryisakeycontributortotheIndianeconomy,accounting forabout4percentoftheIndianeconomy.Thelastfewyearshaveseengreater  integrationoftheIndianindustrywithitsglobalcounterparts.Whatisinteresting aboutthisisitsalmostdemocraticnature,inthatalargepartoftheindustryhas seensignificantchanges.Whilethechangeshavebeenmorevisibleintheauto componentpartoftheindustry,withkeyplayershavingasignificantexport contributiontoday,OriginalEquipmentManufacturers(OEMs)toohavebeen undergoingtheirownsetofchanges. KPMGinIndiahasbeenfortunateenoughtoseethistransformationtakeplace, whileparticipatinginasmallway,throughitsworkwithkeypartsofthe automotivesupplychain.ThewaveofchangestartedwithoverseasOEMs  wantingtoenterthecountry.Anaturalfall-outofthiswasthelargesupplierswho enteredthecountryaspartofthe‘followsource’doctrine.Thelastcoupleof yearshaveseensignificantinterestfromIndianplayerswhoareactivelylooking atexcitingmarketstoenteraswellasattractivetargetstoacquire.Wehave watchedandassistedanumberofplayers,whetheritwasassistancerelatedto their‘India/OverseasStrategy’,orassistancein‘MergersandAcquisitions’,or  adviceon‘tax’,oradviceonhowto‘managerisks’.  Goingforward,OEMsaswellasautocomponentplayerswillevolvefurtheras theybecomemoreandmore‘global’innature.ForOEMs,thiswouldmean risingcompetitioninthedomesticmarket,andhencetheneedtodiversifyoutof India.Forautocomponentplayers,thiswouldmeantheneedtoachieveglobal manufacturingstandardsandemergeassupplierofchoiceforglobalcompanies. Thesechangeswouldhaveasignificantimpactontheautomotivesupplychain. Clearlytheneedofthehourisforvariousplayerstoidentifykeychallengesfacing theindustryanddevelopstrategiestohelpmitigatethese. Theobjectiveofthisstudywastoanalyzethekeychallengesfacingdifferent sectionsoftheIndianautoindustry,identifyareaswhichneedsignificant attention,andidentifyopportunitiesforserviceproviders,whocouldassistauto playersinmeetingsomeofthesechallenges.Thisreportcontainstheresultsof ouranalysisincludingadip-stickprimarysurveywithsupplychainheadsofkey autocompanies. WearegratefultoCIIforgivingusthisopportunityandtoallrespondents,who contributedtothisstudy.Wehopethisdocumentservesasaquickprimerfor issuesfacingtheIndianautomotivesupplychain.Italsoseekstoprovide answerstosomeofthekeyquestionsrelatedtosupplychainmanagement (SCM)facingtheindustry. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

8/3/2019 Indian Automotive Supply Chain

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2IndianAutomotiveSupplyChain 

SurveyFindings

KPMGconductedadip-stickstudy,aspartoftherun-uptotheCII’sAutoSCM  2006,acrossparticipantsfromvariousOEMs,auto-componentplayersand logisticsproviderstoidentifykeyissuesandchallengesbeingfacedbythem.The findingsoftheprimarysurveywerethensupplementedbyKPMG’sanalysis. Theconclusionsfromthisexercisehavebeencategorizedintothreebroadareas: 

•  Integrationoftheauto-SupplyChain •  RoleofoutsourcinginautosupplychainsinIndia •  Theglobalautosupplychain–keycapabilitiesrequired 

Integrating the end-to-end supply chain is the

key challenge in the Indian auto industry today

Keyissues/challenges Indianautomotiveplayerstodayfaceseveralkeychallengesinmanagingtheir supplychains.Whileaddressingtheseiscriticalforsuccess,playerswereasked torankthechallengesinorderofpriority. 

Leading SCM challenge

Integratingtheend-to-endsupplychain

ManagingInboundLogistics/JITSupplies

Managingsupplychaincosts

Managingproduct/PartProliferation 8%

15%

15%

62%

0 10 20 30 40 50 60 70

Percentage of respondents

Figure 1:LeadingSCMchallengefacedbyIndianautomotivesector

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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IndianAutomotiveSupplyChain 3 

Ouranalysisrevealedthatthemostsignificantchallengeidentifiedbyautomotive playersinIndiais‘integrating the entire supply chain’ andmanagingitasasingle integratedentity.WhilepasteffortsofOEMshavebeenfocusedonstreamlining andimprovingdifferentareasofthesupplychainindependently,througheffortsin dealermanagement,operationsplanning,vendorrationalization,ITpackage implementationetc,itisexpectedthatthelinkingupoftheseactivitiesis expectedtoprovidesignificantbenefitstoplayers,asthiswouldinvolvealigning theentirechaintomeetmarketrequirementsinthemostefficientway. Thekeychallengeinachievingthiswouldbetwo-fold–toalignthedifferent stakeholdersalongthechain–vendors,transporters,distributorsanddealers– alongcommongoalsandprocesses,andalsotointegrateandlinkdisparateIT systemsusedbydifferentstakeholders.  ‘Managing inbound logistics’ remainsakeyconcernforOEMsaswellasauto componentplayers,drivenmorebychallengesrelatedtoreliabilityofdata,lead timeandabsenceofqualitylogisticsplayersontheupstreamside.However,all respondentsfeltthatthiswasakeyareaoffocus,giventhecriticalityofsupply forfuturegrowth. ‘Managing product and part proliferation’  isoneofthesecondsignificant challengesplayersface.IncreasingcompetitionintheIndianautomotiveindustry hasledtosignificantshrinkageinproductlifecyclesandtheneedforregularand frequentproductupgradationandnewproductintroductions.Whilethishasled toissuesofmanagingawideproductportfolio,arelatedkeyissueisthe proliferationofparts/components,drivenbytheneedforprovidingsparepartsfor currentaswellasdiscontinuedmodels.RespondentsacrossbothOEMsaswell asauto-componentsindicatedthatincreasinglytheneedforcommonplatforms, andhencecommonpartsbecomingcriticalpre-requisite.Akeyroleplayedby productdevelopmentteamstodayistheidentificationandadoptionofcommon partsandcomponentsacrossmodels.Howeverallrespondentsagreedthatthere wassignificantscopeforimprovementinthatarea. Costs,qualityandtimelydeliverycontinuetobekeyconcernsforplayers,driven byincreasingcompetitionandpressureonmargins.ManyOEMshave implemented‘Just In Time (JIT) supplies in their inbound logistics’ .However,in caseswherethisisnotaccompaniedbyincreasedvisibilityacrossthesupply chainandimprovedplanning,ithasonlyresultedintheburdenofinventory gettingshiftedfromOEMstotheirTier-Ivendors.  

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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4IndianAutomotiveSupplyChain 

KeyinitiativestoaddressSCMchallenges Severalstrategiesandmeasuresareenvisagedbydifferentplayerstoaddress thesekeyissues.Theprimaryfocusofmostplayersisonimplementing ‘improved processes and IT systems’ acrossthesupplychain.Inviewofthefact thatmostOEMsandmajorsuppliershavealreadyimplementedintegratedIT systems(ERP),thisfeedbackindicatesthattheyhavenotbeenabletoleverage thebenefitsofsuchsystems.Akeyreasonforthis,isthatbusinessprocesses havenotbeenstreamlinedoralignedwiththeneedsofthenewITsystem. 

Leading strategy for SCM challenges

IncreasedInvestmentinITandprocess

improvements

Vendor/Dealerrationalization

Outsourcingtologisticsserviceproviders

AddressingInfrastructureissues 8%

23%

31%

38%

0 10 20 30 40

Percentage of respondents

Figure 2 :Leadingstrategytoaddresssupplychainchallenges

Inadditiontothis,ascompaniesmature,theirinformationneedstomovebeyond thecapabilitiesofatransactionprocessingsystem.Anumberofrespondents corroboratedthis,andmentionedthattheywereinadvancedstagesof implementingdecisionsupportsystemsanddashboards,whichfacilitate monitoringofsummarizedinformation. ‘Vendor / dealer rationalization’ isanongoingfocusareaforOEMstoreduce costsandtightenmanagementofsupplychains.However,mostrespondents agreedthattheIndianindustryhasstillnotevolvedintoafullytierizedstructure whereTier-Ivendorstakeonresponsibilityformodules/sub-assemblies. Thestudyalsoindicatedthatincreasingly,effortswerebeingmadebymany OEMsandTier-Ivendorsto‘outsource’ keyactivitiesalongthesupplychainto logisticsplayers,inanefforttoreducecostsandincreasefocusontheir customersandcoreactivities.Thisareaisdiscussedingreaterdetailinthenext section. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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IndianAutomotiveSupplyChain 5 

Outsourcing of supply chain activities will

increase

ImplicationsforOEMsandauto-componentplayers MostOEMsandlargeTier-Isuppliershavealreadyoutsourcedtheiroutbound logisticsactivities.Theseactivitiesincludecarryingout‘milk runs’ tocollectand deliverpartstoOEMsonadailybasis,transferringmaterialsacrosshubsand warehousing/inventorymanagement.Keylogisticsplayershavestarted maintainingwarehousesincloseproximitytoOEMs’plants,andsupplying materialsonaJITbasis.Relatedservicesbeingprovidedbylargethirdparty logisticsserviceproviders(3PLs)includeconsolidationofmaterials,packaging, incominginspection,cleaning,etc. 

Outsourced elements in SCM

   P  e  r  c  e  n  t  a  g  e

  o   f  r  e  s  p  o

  n   d  e  n  t  s

80

60

40

20

0

15%

54%

69%

77%

Packaging Outbound Warehousing Inbound

logistics logistics

Figure 3:Increasedlevelofoutsourcingintheautomotivesupplychain

ThefactthatbothOEMsandsuppliersarelookingatoutsourcingprovides significantopportunitiesforlogistics.Packagingisanotherareathathas significantpotentialforbeingoutsourced,asthisisanaturalvalue-addpriorto transportationofparts. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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6IndianAutomotiveSupplyChain 

Logisticsservice providersinfuturehave thepotentialtotakeon theentirephysical movementofgoodsin theautomotivesupply chain,aswellasplanning andscheduling 

Implicationsforlogisticsserviceproviders BothOEMsandsuppliersareunanimousthatinthefutureoutsourcinginSCM willgrow,andlogisticsserviceproviderswillstarttakingonmorecomplexroles. Theseincludekitting/moduleassembly(asaprecursortoJITsupplies),parts andinventorymanagementandalsosourcingofpartswithinIndiaandglobally.In effect,thisimpliesthatlogisticsserviceprovidersinfuturehavethepotentialto takeontheentirephysicalhandling/movementofgoodsintheautomotive supplychain,aswellasplanning/scheduling. 

Thiswouldemergeasahugeopportunityfortheseplayers,however,entering thisspacewouldrequireseveralstrengthsandcapabilitiessuchasnational/  

Future outsourcing in SCM

Moduleassembly

Planning&Scheduling/Inventory

management

Partssourcing

EndtoendSCM 38%

46%

46%

69%

0 10 20 30 40 50 60 70 80

Percentage of respondents

Figure 4:Futureoperationswhichcouldbeoutsourced

globalpresence,relationshipswithtransporters/shippinglines,deepknowledge andskillsinplanningandprojectmanagement,customizedITcapabilities,and theabilitytointegratethesetoprovidesolutionscustomizedfortheOEM/  supplier.ItappearsthatthegrowthofoutsourcinginautomotiveSCMinfuture, wouldbelimitedonlybythecapabilityoflogisticplayerstogearuptodeliver theseservices. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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IndianAutomotiveSupplyChain 7 

Need for global SCM capabilities becoming

significant

Whilethechallengesandimperativesdiscussedtillnowhavebeendrivenby changesinthedomesticautomotivemarket,amoresignificanttrendistherapid globalizationoftheIndianautoindustry.AsglobalOEMsandTier-Isseekto sourcemoreparts,componentsandvehiclesfromIndia,andIndianplayersseek toleveragethisopportunitytoincreasetheirglobalfootprint,supplychainfor manyIndianautoplayerstodayextendsacrossseveralcountries. Exportsareakeypartofglobalstrategy MostIndianplayersalreadyhaveaglobalpresence,andarelookingatfurther growthfromoverseasmarkets.Managingtheglobalsupplychainhasthus becomeasignificantchallengeforIndianautomotiveplayers. Mostoftherespondentsindicatedthatexportsconstituteakeypartoftheir strategytoday,furtheroverthenextfiveyears,theseplayersexpecttonearly doubletheirshareofexports.Mostoftheplayerswhohavenascent 

Revenues from exports

44%

22%

34%

12%

38%

25% 25%

0

10

20

30

40

50Today

In5years

0-10percent 10-20percent 20-40percent morethan40

percent

Percent revenues from exports

Figure 5:Revenuesfromexports,todayandfiveyearsfromnow

(<10percent)exports,expecttosignificantlyimproveandhaveexportsof10 percentto20percentinfiveyears.Whilenoneoftherespondentshadmore than40percentexportscurrently,nearly29percentexpecttobethereinfive years. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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8IndianAutomotiveSupplyChain 

Themajorityof respondentsfeltthat settingupown operationsinother countriesisthemost preferredoptionfollowed byacquisitionsandJVs 

Atpresent,theGulfcountries,EuropeandNorthAmericaarethekeymarkets Indianplayersarelookingatforexportscurrently.Whilethesewillcontinueto remainsignificantoverthenext5–10years,ASPACandJapanareseenasnew  potentialmarketsforexports. Differentmodelsarepossibletoaddressglobalmarkets Inadditiontoexporting,manylargeIndiansuppliersandOEMshavealso establishedtheirmanufacturingpresenceinothercountries.Severalbusiness modelshavebeenusedbyIndianplayerstoventureintoothercountries, includingsettingupownventures,acquisitionsandjointventures.Inourstudy, themajorityofrespondentsfeltthatsettingupownoperationsinothercountries isthemostpreferredoptionfollowedbyacquisitionsandJVs.Themodelforeach playerwoulddependontheopportunityandtheirowninvestmentandrisk appetite.MostsuppliersinIndiaseeacquisitionsasameanstogetan establishedcustomerbase,whichcanthenbeservedoutofIndia. 

Business models for global markets

Ownoperationsinothercountries

31%

54%

54%

0 10 20 30 40 50 60 70

62%

Acquisitionoflocalplayersinothercountries

JVswithlocalplayersinothercountries

Leveragingglobalparent/technologypartner's

operations

Percentage of respondents

Figure6:Businessmodelsthatarebeingadoptedforglobaloperations

Havingtherightpartner–keytosuccessinglobalmarkets Managingaglobalsupplychainthatspansdifferentcountriesposesseveral challengesuniquetoautomotiveplayersinIndia.Thecomplexityofoperationsis increasedbyhavingtomanagelongerleadtimes,morenumberofstages,and multiplestakeholdersinvolved,higherexpectationsofcustomerswithregardto qualityanddelivery,andmaintainingcostcompetitiveness. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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IndianAutomotiveSupplyChain 9 

Inourstudy,respondentsidentifiedseveralkeysuccessfactorsnecessaryfor managingglobalsupplychainseffectively.Thekeyrequirementperceivedisthe  

Leading success factor for global SCM

Goodlogisticsserviceprovider

withglobalreach

LocalPresence

Dedicatedinternalorganisation

Process/ITcapability 8%

17%

33%

42%

0 10 20 30 40 50

Percetage of respondents

Figure7:Keyfactorsforsuccessinmanagingglobalsupplychains

needtohaveastronglogisticsserviceprovider,whohasglobalreachand experienceinoperatingindifferentmarkets.Suchplayerscouldhelptocutdown thetimeforenteringthenewmarketsignificantly,astheywouldbeableto leverageexistinginfrastructure,businessrelationshipsandexperienceineach markettocrunchleadtimes.Theywouldalsobeabletoidentifykeyrisksand provideadequateadviceonaddressingthem. Whileastronglogisticspartnerisakeyrequirement,manyplayersunderscored theneedforalocalpresenceinthemarketaddressed,tobeabletoassessthe market,takedecisionsandleverage/managelocaltalent. Asthechallengesandrequirementsformanagingaglobalsupplychainare significantlydifferentfromthatfordomesticmarket,havingadedicatedinternal organizationtofocuscompletelyontheglobalSCMwasidentifiedasanotherkey requirement. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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10IndianAutomotiveSupplyChain 

Focus areas for the future

TherapidtransformationandglobalizationoftheIndianautoindustryhasresulted insignificantopportunitiesandchallengesforplayersinmanagingtheirsupply chains.Mostplayersareawareoftheseandhavedevelopedstrategiesfor addressingthem.Severalkeyfocusareashavebeenidentifiedwhere investmentsareplannedoverthenextfiveyears. 

‘Vendor management’ wouldcontinuetoremaintheprimaryfocusareafor 

OEMs,inmanagingtheirsupplychains.However,infuture,vendorswould  includeserviceproviders,aswellaspartssuppliers.Also,thevendorbasecould includethoseinothercountriesaswell,asOEMslookatglobalsourcingfor partsandservices.Asdiscussed,developingandmanaging‘global supply chains’ 

wouldbeakeyfocusareaoverthenextfiveyears. 

Leading SCM investment requirement for future

Globalsupplychains

VendorManagement

Dealermanagement&distribution

mprovedplanning&processimprovements 8%

23%

31%

38%

0 10 20 30 40

Percentage of respondents

Figure 8:Investmentrequirementsforfuturesupplychains

‘Dealer management’ isemergingasasignificantfocusarea,asdealersformthe primaryinterfacewithcustomersandhencearecriticalforcustomerretention andrelationshipbuilding.ManyOEMsseesignificantpotentialfortop-lineand

 bottom–linegrowthbytappinggreatercustomervalueacrosstheproductcycle. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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IndianAutomotiveSupplyChain 11

Keylearningsfromthestudy Basedonthestudy,thetrendsandchallengesinautomotiveSCMinIndiathrows upseveralimperativesforplayersintheindustry: ForOEMsandsuppliers 

1  Focusonintegratingtheend-to-endsupplychainandimproving transparency.ThisprimarilyinvolvesprocessalignmentwithITsystems  

2  Managinginboundsupplychainneedsadditionalfocustoensurecapabil itytosupportgrowth. 

3  Managepartsproliferationtosignificantlycutdownsupplychain complexity 

4  Identifyanddeveloprelationshipswithstronglogisticsserviceproviders –lookatopportunitiesformoreoutsourcing 

5  Whileaddressingglobalmarkets,workwithastrongpartnerwhoknows thelocalmarketwell 

6  Continuousfocusonprocessefficiencies Forlogisticsplayers  

1 Developcapabilitiesinareasofmaterialhandlingandmovement, acrossgeographies,eitherindependentlyorthroughtie-ups 

2 Lookatdevelopingcompletesolutionsforautomotivesupplychain needs,ratherthanpiece-mealservices.Thiswouldinvolveproviding knowledge/technology–basedservicessuchasplanning,scheduling andmaterialtracking 

3 OEMsandsupplierscouldlookattheserviceproviderastheintegrating factoracrossthesupplychainandhencedevelopprocessesandsys temstofacilitateprovidingservicesacrossthesupplychain 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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12IndianAutomotiveSupplyChain 

Conclusion

TheIndianAutomotiveindustryiscurrentlypoisedatastageoftransformation withchallengesandtrendswhichareunique.Clearly,playersinIndiawillhaveto remaingloballycompetitivetosustainthelevelsofgrowththeyhavebeen enjoyingoverthepastfewyears.  AstheIndianindustrymatures,thekeyimperativeforplayerswillbetomanage globalsupplychains,whichwillplayavitalroleinensuringthattheimpetus

 gainedoverthepastfewyearsissustained.Thiswouldimpactallstakeholders withinthevaluechain(includingOEMs,suppliers,distributorsanddealers). Tothatendintegrationoftheend-to-endsupplychainshouldbeviewedasthe biggestimperativefortheautoindustryalongwithanallencompassing ITsystem. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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13IndianAutomotiveSupplyChain 

AboutKPMG 

KPMG’smemberfirmsinIndiawereestablishedinSeptember1993.As membersofthecohesivebusinessunitthatservestheMiddleEastandSouth Asia(KPMG’sMESAbusinessunit),theyrespondtoaclientserviceenvironment byleveragingtheresourcesofagloballyalignedorganizationandproviding detailedknowledgeoflocallaws,regulations,marketsandcompetition. InIndia,KPMG’srangeofservicesincludesAudit,Tax,andAdvisoryservicesto  over2,000internationalandnationalclients.Clientsrangeacrossfivesectors namelyfinancialservices;consumermarkets;industrialmarkets;information, communicationandentertainment;andinfrastructureandgovernment.KPMG hasofficesinIndiainMumbai,Delhi,Bangalore,Chennai,Hyderabad,Kolkata, andPune.ThefirmsinIndiahaveaccesstomorethan1,700Indianand expatriateprofessionals,manyofwhomareinternationallytrained. KPMGprovidesrapid,performance-based,industryfocusedandtechnology enabledservices,whichreflectasharedknowledgeofglobalandlocalindustries andexperienceoftheIndianbusinessenvironment. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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IndianAutomotiveSupplyChain 14 

AboutConfederationofIndian Industry

 TheConfederationofIndianIndustry(CII)workstocreateandsustainan environmentconducivetothegrowthofindustryinIndia,partneringindustryand governmentalikethroughadvisoryandconsultativeprocesses. CIIisanon-government,not-for-profit,industryledandindustrymanaged organisation,playingaproactiveroleinIndia'sdevelopmentprocess.Founded over111yearsago,itisIndia'spremierbusinessassociation,withadirect membershipofover6000organisationsfromtheprivateaswellaspublic sectors,includingSMEsandMNCsandindirectmembershipofover98,000 companiesfromaround342nationalandregionalsectoralassociations. Afacilitator,CIIcatalyseschangebyworkingcloselywithgovernmentonpolicy issues,enhancingefficiency,competitivenessandexpandingbusiness  opportunitiesforindustrythrougharangeofspecialisedservicesandglobal linkages.Italsoprovidesaplatformforsectoralconsensusbuildingand networking.Majoremphasisislaidonprojectingapositiveimageofbusiness, assistingindustryidentifyandexecutecorporatecitizenshipprogrammes. With56officesinIndia,8overseasinAustralia,Austria,China,France,Japan, Singapore,UK,USAandinstitutionalpartnershipswith240counterpart organisationsin101countries,CIIservesasareferencepointforIndianindustry andtheinternationalbusinesscommunity. 

©2006KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.PrintedinIndia. 

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in.kpmg.com

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orentity.Althoughweendeavortoprovideaccurateandtimelyinformation,therecanbenoguaranteethatsuchinformationis

accurateasofthedateitisreceivedorthatitwillcontinuetobeaccurateinthefuture.Nooneshouldactonsuchinformation

withoutappropriateprofessionaladviceafterathoroughexaminationoftheparticularsituation.

Keycontacts

KPMGYezdi Nagporewalla

National Industry Director

Industrial Markets

KPMG House, Kamala Mills Compound

448, Senapati Bapat Marg,

Lower Parel, Mumbai 400 013

Tel: +91 22 39835101

Fax: +91 22 39836000

E-mail: [email protected]

Arun KrishnanE-mail: [email protected]

Ashwin Jacob

E-mail: [email protected]

Preet Mohan Singh

E-mail: [email protected]

CIIInstituteofLogistics

Anuradha Parakkat

Director

E-mail: [email protected]