ContentsActivity Snapshots 3From the Regions 5ACMA in the Press 21

National Committees 22Members' Room 28

February - March 2012Vol. 8 No. 35

Automotive Component Manufacturers Association of India

ACMA-ISB Business Excellence Leadership Programme, Hyderabad

1st MSME Summit, New Delhi

National Conference on Future Technology Trends in the Automotive Sector, Pune

Participation at INAPA 2012, Indonesia

Auto News

February-March 20123

Activity Snapshots

ACMA ISB Business Excellence Leadership Programme March 18-21, 2012 : Hyderabad

To address the specific needs of the industry and to respond strategically to the emerging global challenges, ACMA last year signed an MoU with the Indian School of Business, Hyderabad to design and develop Business Excellence Leadership programme for the CEOs .

Continuing with its theme -Globalisation and Strategy, the second in series, three day training programme once again brought together business executives and the academia for focused group discussions on companies that had identified game changing trends to respond strategically to the competitive market forces.

Each of the case studies highlighted on how they had looked beyond their direct competitors to create a market niche for themselves in their long term growth plans .

The faculty, comprising Dr Srinivasa U Rangan, Research Fellow, Asian Institute for Latin American Business at Babson College and Dr Sam Hariharan, Associate Professor in Management , Babson College, MA-USA also gave group assignments to analyze and represent these case studies in different scenarios.

There was also a presentation each day by a senior thought leader from within the membership who shared his perspective and insights on the key integration challenges in his globalization journey .

These included Dr Surinder Kapur, Chairman, Sona Group; Mr N K Taneja, Group Chief Marketing Officer, Minda Management Service Ltd., Mr Amit B Kalyani, Executive Director , Bharat Forge. Mr Bhaskar from HCL represented a speaker from the non automotive fraternity Presentation by speakers evoked lot of queries from participating members.

The ACMA -ISB Business Excellence Leadership workshop designed specifically for CEOs, is a highly interactive exercise giving deeper insights on the ever changing global market dynamics. Members were of opinion, the programme is a not to be missed, “must attend” event for entrepreneurs.

The training session had an overwhelming response with participation of 29 CEOs this time.

The law allows Microsoft to block the US Company from selling the finished product in the State and compel them to pay damages for what the overseas supplier did. To elaborate it further, if a company overseas uses a pirated Microsoft’s software, not only in any one step alone but anywhere in their business and sells the parts to a US company to become part of a larger product, in such a scenario:

• US company is liable for damages• Tripled if it was knowingly done• It can be blocked from selling the product in Washington State

The law applies to all manufactured products and to all suppliers from any country. It doesn’t matter what it is, as long as it’s manufactured with contributions from an overseas supplier, like in China, who did not pay Microsoft for software that it uses somewhere in its business. It’s the US Company which has to pay the damage and not the overseas supplier.

So what does it mean for us?

It has been witnessed that most of the competing countries had gained the competitive edge in the international market by better price competition via in-depth technological interventions in the manufacturing processes. However, the sustainability of this competitive edge remains questionable under this law given the rising software piracy rates in these countries .

As per the stated law US companies would be sued if they are found undertaking any business transaction with the overseas companies which are found using pirated version of the software. As a result of this, US companies would but obvious choose and prefer to trade with countries where the usage of pirated version of these software is the minimum. In such a scenario, there is a huge possibility of the shift in the preferences of the US buyers from existing suppliers including China and other South East Asian countries to India for the very reason of a much higher software piracy rates prevalent in these countries as compared to India.

Which are these sectors in which Indian exporters would gain advantage in such a scenario?

USA has traditionally been a prominent market for India with the exports of meager 5014.48 USD mn in 1995 to 19493 USD mn by the end of 2010. The sectors that has seen a considerable hike in growth rate in exports to US since last five years has been handicrafts occupying 53% share in total

“New IT Compliance Law in USA”: increased business opportunities for Indian exporters

The all-pervasive phenomenon of globalization has opened up a new era of challenges and opportunities for world business. It has prompted all players including MSMEs, irrespective of their size or place of operation to become globally competitive. Integration with global markets however requires professional support in a range of operational aspects including marketing, technology, finance, etc. With SMEs contributing nearly 40 per cent to the manufactured exports from India in small components or electronic parts, garments or leather goods etc and responsible for about 60 percent of India’s export and employing 40 million workers making manufacturing sector important for our economy; a critical need for the SMEs is to have professional management of exports in a borderless world. Information Technology has played a significant role towards this management by their interventions at all levels/fields i.e design, distribution, marketing, finance etc. However the usage of IT is still low in India as compared to other competing suppliers.

In such a scenario wherein the IT usage in India is still low compared to competing suppliers, thus resulting into the loss of competitiveness of Indian manufacturing exports in the international market; the new IT compliance law in USA brings forth new business opportunity for Indian exporters of manufactured goods.

What does the law says and what does it mean for us?

On April 4, 2011, bill was passed in Washington State of USA which indicated that:

“A business that manufactures a product while using stolen or misappropriated information technology (stolen IT) in its business operations engages in unfair competition when the product is sold in Washington, either separately or as a component of another product, in competition with the product made without use of stolen IT”.

Stolen or misappropriate IT is defined as hardware or software that a person acquired, appropriated, or used unlawfully, unless the hardware or software was not available for standalone retail purchase at or before time it was stolen. Using IT in business operations would mean using IT to design, manufacture, distribution, marketing or sales of products.

February-March 20125

Auto News

exports targeting US market followed by textiles, gems and jewelry, processed food (animal products, cereal and seafood), articles of iron and steel, musical instruments, pharma and construction material etc. Other sectors include wood articles, organic chemicals, glass and glassware, electrical and electronic items and rubber articles.

Amongst the auto component sector, the only segment where India could gain access in the USA market is accessories of motor vehicle and hubs, other than coaster braking hubs and hub brakes to some extent. While in other major auto component products presence of India in US market is minimal. Most of these sectors are dominated by China.

Indian exporters have been facing tough competition in US market with countries including China which captures almost 19.5% share of total US imports as compared to India which accounts for only 1.6% share. Other competing countries include Venezuela, Nigeria, South East Asia, Peru, Argentina, Algeria and SAARC countries including Pakistan and Bangladesh. Apart from China, other countries like South East Asian economies, LAC and other African countries are also amongst the prominent suppliers of the products exported by India in the US market. These sectors include China, Pakistan, Bangladesh and Thailand for textiles; China, Thailand, Argentina and Vietnam for iron and steel products; Argentina, Vietnam, Indonesia and Nicaragua for most of the processed food items etc.

Considering the prevalence of much higher software piracy rates prevalent in these countries as compared to India, sectors where Indian manufacturing exporters would gain vis-à-vis other competing suppliers are listed in the table below. Since as indicated above, there is a huge possibility of the shift in the preferences of the US buyers from existing suppliers of the products as listed above to India. Considering the fact that the software piracy rates in these countries are much higher than that found in India, Indian manufacturing sector can attain prominent place in the US market just by the usage of genuine IT.

Some of these sectors, where Indian manufacturers will have increased export opportunities vis-à-vis other competing suppliers would be inorganic chemical, stone, plastic, cement, iron & steel, dairy, eggs, honey, beverages, ceramic products, cereal, leather, rubber, plastic, organic chemical, electrical machinery with China; iron and steel, rubber, clocks and watches, beverages, live animals, handicrafts, footwear, musical instruments etc from South East Asian countries; fertilizer, spices, coffee, tea, precious metals, prepared meat, rubber, cocoa etc from Canada and precious stones, tobacco, pharmaceutical products, woven apparel, seafood, art & antiques etc from Latin American countries.

Indian exports have also been losing its share in US imports due to the prevalence of regional trade agreements (RTAs) and preferential trading arrangements (PTAs) between USA and competing suppliers including NAFTA, Thailand, Ghana, Indonesia, Kenya, Kuwait, Malaysia, Mauritius, Mozambique, UAE, Ecuador and Qatar. Understanding that US companies will be sued in case the usage of non genuine IT is found anywhere in the value chain, Indian exporters of the final products should also be cautious enough during the procurement of raw material either domestically or from any of the importing countries where the software piracy rates are higher.

Growing awareness about the possible loss of business opportunity as a result of the new IT compliance law is witnessed by the efforts taken by many countries including China, Mexico, Costa Rica,India, Pakistan, Paraguay, Peru, Tajikistan, and Ukraine, Japan, Korea, Mexico, Morocco, New Zealand, Singapore, Switzerland. Therefore it’s high time for Indian manufacturing sectors to take up IT compliance as a serious management activity and gain market share from other non compliant competitors before these efforts are strengthened in these countries.

From the Regions

forthcoming programmess on sharing of best practices that provides a platform to exchange and cross-pollination of ideas.

Vice President, Mr. Surinder P. Kanwar, in his address focused on membership profile, the out reach, challenges and value addition to the membership by ACT (ACMA Centre of Technology). Mr. Kanwar was happy with the success of not only regional programmess but also the ACT Cluster programmes and urged the members to continuously engage and participate in the programmess. He also requested the tier II companies to join ACMA and utilize its services to enhance their potential and capabilities in the competitive market.

This interactive session ended with vote of thanks by Mr. Sanjay Sabherwal, Dy. Chairman, ACMA (ER).

Eastern Region

Members Interaction with President & Vice President, ACMA February 28, 2012 : Jamshedpur

Discussing the challenges of the industry, Mr. Arvind Kapur, President, ACMA, said, “While the industry is growing fast, the profitability is dipping, R&D focus is the need of the hour to survive in the competitive business environment”. Mr. Kapur expressed his confidence that the coming years will witness high levels of growth in the Indian automotive industry, this optimism stems from the huge investments being made by the government in the infrastructure sector, which will augment the vehicle production levels, drive increase in wages and salaries and lead to exponential growth in the industry.

Mr.Killol Kamani, Chairman (Eastern Region), ACMA, while welcoming the President & Vice President, thanked the membership for supporting the region by participating in the regional activities and making the programmes successful. He also urged members to participate in the

February-March 20127

Auto News

Sharing of Best Practices: Visit to Taurus Flexibles (P) Ltd. March 14, 2012 : Jamshedpur

“Every organization has an untapped wealth of knowledge, skills, and creative practices, all of which could have a tremendous impact on programs and services if more widely applied. A good way to improve performance is to replicate successes in one place throughout an organization and sharing of best practices with the other organizations. Sharing of best practices gives learning a new dimension by providing a platform to exchange ideas and learn from each other.” said Mr. Sanjay Sabherwal, Dy. Chairman, ACMA(ER) in his address to the members.

Mr. Bhuvan Khsettry, MD, Taurus Flexibles P. Ltd., while welcoming the participants and shared the fact that after joining the ACT Foundation Cluster, there is a tremendous improvement in the company. Besides the visual changes, transformation in the mindset of employees is incredible, he said.

Mr. M. K. Dey, Head, QA & Technical Support and the mentor of the Foundation Cluster, Taurus Flexibles P. Ltd. shared a presentation on the company and through photographs displayed the visual changes and improvements in the plant, total employee involvement, 5S activities, kaizen, work place re-design, ergonomics to address, fatigue, postural issues, ease of handling material, provision of a small Kanban storage near the work station to reduce cycle time, improvement at work place

environment by changing the roof top corrugated sheet to world class heat resistant roof top and ample use of natural lights. These improvements observed by the delegation, has motivated the employees and has led to enhanced employee efficiency and increased productivity and performance.

Northern Region

One Day Training Programme on Flow Manufacturing March 2, 2012 : New Delhi

ACMA (Northern Region) organized a one day Training Programme on Flow Manufacturing on March 2, 2012 at New Delhi

Explaining Flow Manufacturing, Mr. Manoj Mathur, Consultant S.K. Associates and faculty for the programme, said, Flow is a fundamental concept of Lean Manufacturing. Many of the Lean Tools are designed to help improve or smoothen the flow of parts and materials through the production processes. The goal is an optimally balanced production line with little waste, at lowest possible cost, on-time and defect-free production he said.

Mr. Mathur also elaborated on TAKT time which he explained, followed the principle of time allowed by Customer to produce and supply one product.

February-March 20129

Auto News

An efficient flow-through manufacturing system will eliminate waste, minimize work in process, optimize floor space, reduce lead-time and improve customer response time, leading to reduced costs and greater production capacity he said.

He further explained the characteristics of flow manufacturing which are:• Straight and short product flow patterns• Make to order• Single-piece production• Just-In-Time materials/pull/dependent demand scheduling

• Short cycle times • Highly flexible and responsive processes • Highly flexible machines and equipment • Quick changeover • Continuous flow work cells • Collocated machines, equipment, tools and people• Compressed space • Multi-skilled employees • Empowered employees • High first-pass yields with major reductions in defects

Training Programme on Visual ManagementFebruary 16-17, 2012 : New Delhi

In continuation with the practice of sharing of Lean techniques, ACMA-Northern Region organized a Training Programme on Visual Management that was attended by 55 Participants.

Explaining what Visual Management is, Mr. Manoj Mathur, Consultant S.K. Associates and faculty of the program, said, Visual Management is the effectiveness of a workplace where all members understand and manage their own work in a safe, clean, organized environment that fosters open communication, pride, and continuous improvement.

Emphasizing on Why Visual Management is important, he explained, that human beings collect information 83% through eye, 11% through ear, 3.5% through sense of smell, 1.5% through sense of touch and 1% through sense of taste.

Mr. Mathur elaborated a Visually Managed Factory is a workplace that is easily understood by all. Anyone walking into a work unit, ̀ at a glance can understand’ the status of that unit, what is waste or abnormal, and where improvements are required. He said the best visual display symbols are easy to understand shows immediate status and engages viewer’s attention. Mr. Mathur shared the use of Status Boards, Product Displays, Storyboards / Pictures, Electronic Marquees in providing information regarding Safety, Quality, Operations, Equipment, Work Environment, Progress / Achievements of a work unit.

He further detailed the concepts and techniques involved in application of Visual Management and explained how effective use of this technique can reduce waste of all kinds and can lead to improved quality, reduced changeover time, Improved safety, Higher Employee Morale and helps in reducing storage costs, cycle time and machine down time.

One Day Training Programme on Personality Development SkillsMarch 20 , 2012 : Rohtak

ACMA (Northern Region) organized a one day training programme on “Personality Development Skills”.

Welcoming the participants Mr. Rajesh Jain, Zonal Coordinator, Rohtak & Hissar, ACMA (Northern Region) and Director, Lakshmi Precision Screws Ltd., said that in today’s business scenario People are the most important asset and Personality Development is important for the success of an individual as well as for the organization as it is the People who drive the organization.

Mr. Jain while explaining the objective of the training programme said that it is essential to understand the process to develop a holistic personality, in addition to functional competencies, such as finance, HRD, marketing etc., Personality factors are extremely important in today's competitive

organisational settings. There is a need to learn how to conduct and behave in certain situations, how to be assertive and respond with a degree of professionalism, how to make interactions more meaningful and productive.

He further said that in today's multi-cultural environment, it is an imperative to have a basic understanding of etiquettes and learn about personal grooming. Building a multi-faceted personality is important to manage successfully in a competitive workplace.

Mr. K.K. Muthu, President, Corporate Consultancy Services, and faculty of the programme, said that Personality is the development of desire. Man’s success is determined by the obstacles he has overcome and character the sum-total of your lifetime's experiences, attitudes and actions. The 6 attitudes of a winner, were also explained, which include Positive Approach, Courageous, Enthusiastic, Practice, Confidence and Expectation.

February-March 2012

Auto News

11

Three Days Training Programme on Noise, Vibration and Harshness (NVH)February 2-4 , 2012 : New Delhi

ACMA (Northern Region) organized the first ever training programme on Noise, Vibration and Harshness.

Mr. Rattan Kapur, Chairman, ACMA (Northern Regional) & Managing Director, Mark Exhaust Systems Ltd., welcoming the participants said, it is important for every company to understand NVH as these are vital for environment, smoothness of the drive and light weighting, NVH are highly integrated and are co-related with…..

Mr. S.K.M. Rao, CEO, Envicon Vibrotech, the faculty of the training programme said that NVH is an important factor in any automobile as it has a great impact on passenger comfort. Each component of the automobile contributes its share of NVH to the overall NVH levels of the automobile he said. Noise and vibrations of constituent components are also indicators of the quality of the product.

Elaborating on NVH, Mr. Rao stressed that it is essential today that, each system and component that goes in to an automobile is accurately designed, manufactured and tested for NVH along with other functional and safety requirements. Towards achieving this objective, it is necessary to have knowledge of various aspects of NVH.

The training programme was intended to generate awareness about NVH and educate the auto component manufacturers of subsystems and components in tackling NVH related issues. The objective of the programme was to:

• Understand/refresh basic concepts of noise and vibration• To understand the measurement and analysis methods

• Transducers and instruments used for their measurement and analysis

• Application of measurement and analysis in a. Identification and finding solutions to automotive NVH problems. b. diagnostics and trouble shooting of NVH problemsc. using NVH to improve the existing designs d. using them as quality indicators

• To impart basic knowledge in advanced measurement and analysis techniques in noise and vibrations which are used in understanding and solving noise and vibrations from automobile industry, structural dynamic analysis and sound power measurement .

on licences for members in some cases. It also provided TVS Infotech Ltd. - a member of ACMA and a certified partner of SAP – the opportunity to provide its services through re-sale of licenses across India.

The IT Committee of ACMA has been active over the past 3 years and as a mandate, brought to the fore through one of its key initiatives immediate benefit to members. The Committee has also coomenced evaluation of products and services on similar lines to benefit the MSMEs.

Information Exchange Standards for the Automotive Industry – A Special initiative by ACMA and SIAM

As a special initiative to benefit the auto industry at large, ACMA and SIAM IT Committees’ have been working to formulate Standards for Information exchange in business transactions between OEMs and suppliers.

Thus far most of the industries in India have not embraced standards for data exchange between trading partners. The automotive sector, however, has taken the lead and identified data exchange as one of the hurdles in its progress, thereby making the first move to define such standards. In India, data and information flow between trading partners occur in non-standard proprietary manner, the format, content and medium for data exchange for the same type of document vary from organisation to organisation. Multiple medium of data exchange are used; namely, email attachment, web portal, hard copies and in few cases even telephonically.

A need to fill the gap as also streamline and standardise information and data exchange was felt by the IT Committees of both SIAM and ACMA, who decided to jointly provide a solution within the automotive community.

Two of the most critical processes were identified viz. Purchase to Pay

Southern Region

ACMA Engages with SAP for a special offer for ACMA members

Automotive Component Manufacturers Association (ACMA) has entered into an engagement with SAP through a special discounted price offer for the industry for both existing and new users. The special offer period is between 1st January 2012 and 31st March 2012.

The engagement extends ERP and Business Analytics applications as a standardized offering with special pricing to ACMA members across India.

This association wide initiative conceptualized and driven by the IT Committee of ACMA and SAP, is first of its kind for the industry, wherein members can opt for the standardized SAP solutions for Rapid Deployment either On-Premise or On-Cloud (Subscription Based Hosting) model, while the 100+ ACMA members who are already using SAP solutions can purchase additional software licenses.

The engagement model with SAP is to propel the industry to effective usage of IT Solutions, to streamline business processes, become more agile and scalable in the competitive landscape.

SAP jointly with ACMA organized roadshows and outreach programs across regions to familiarise ACMA members about the special offer, discounted price offered through this joint initiative. The roadshows were organized in Chennai, Pune and Delhi, where the member response was encouraging with about 100 companies participating in these workshops across all locations. Members appreciated the effort of the IT Committee and expressed their interest.

This initiative has benefited members and has saved upto 50% of the cost

February-March 201213

Auto News

Cycle at OEMs and Order to Cash Cycle at the suppliers end, to begin the standardisation process.

KPMG was commissioned on behalf of ACMA and SIAM to conduct a detailed study of the requirements of the OEMs and the suppliers and recommend the standards for data exchange. In view of its global acceptance, relevance and compatibility to the Indian context, it was

recommended to adopt EDIFACT standards. The milestone was achieved in January 2012, where members of ACMA and SIAM IT Committees, in-principle agreed to follow these standards.

The second phase will include implementation of these standards on a pilot basis.

Over Rs. 3 crores saved during the Six Sigma Training Period in Southern RegionFebruary 23, 2012 : Chennai

The 9th Batch of Six Sigma Level-1 training program participants saved over Rs. 3 crores collectively for their respective companies during the 6-month period, said Mr. Ram Narayan, faculty for the training programme, which concluded with a Certification ceremony on 15 projects that were undertaken resulting in both tangible and intangible benefits for the participating companies. Two of these projects were also presented during the certification ceremony. A total of 11 participants were certified to Six Sigma Black Belt level -1.

Mr. P. Kaniappan, Member Executive Committee, ACMA & Convener, Six

Sigma Training programme, welcoming the participants, members and Mr. Arvind Balaji, Chairman (Southern Region) shared how the Six Sigma practices within his company helped in problem solving including convincing the customers.

Appreciating the effort of all participants, Mr. Arvind Balaji, Chairman Southern Region, mentioned that Engineers need to proactively think and identify / detect problems before they appear and suggested that the Six Sigma tools be applied from the design stage itself.

Mr. Sriram Sivaram, Deputy Chairman Southern Region mentioned that tools like Six Sigma were enablers to achieve customer satisfaction, key to survive in a globally competitive environment.

1st SMED Competition of Southern Region February 25, 2012 : Bangalore

ACMA-Southern Region organised the 1st Single Minute Exchange of Dies SMED Competition, a special initiative of ACMA to enhance team building and help companies witness actual case studies from various companies, to reduce the non-value added activities.

With 21 enthusiastic teams participating in this competition from the Southern Region, it was a platform for member companies to showcase improvements alongside present the impact seen on cost savings to the peer group of other member companies.

Mr. Subash Suresh, General Manager, Central Purchase department, TVS Motor Company Pvt. Ltd. and Mr. H.C. Parthasarathy, consultant with over 4 decades of experience with OEMs and leading auto component manufacturers were the jury for the competition.

Mr. Mukund G., General Manager - Industry operation of Volvo Buses India Pvt. Ltd., the Chief Guest at the event, spoke about the importance of SMED and congratulated each team for the ideas presented during the competition. SMED supports creativity, brings out innovations and out of

the box thinking, flexibility, brings in savings and eliminates waste, he added.

Appreciating the concept of SMED competition of ACMA, he said that it would spread cultural development message, communication, and teamwork and benefit the companies in the long run.

Giving their impressions and advice to the participants, the jury mentioned that the team should involve operators while working on a project. Result of ideas should convert into business and it should be displayed, Mr. Parthasarathy stressed. He also suggested trying and implementing the SMED concept in other processes.

Earlier, Mr. M.M. Kumar, Zonal Coordinator (Karnataka & Hosur), ACMA, welcoming the participants shared the concerns of the auto component industry in terms of cost, productivity and delivery. SMED challenges these three areas and brings about a change, he opined.

Ishikawa team of Rane (Madras) Ltd. won the Gold Trophy. Team Goldmine of Lucas-TVS Ltd. won the Silver Trophy and Battalion Team of Brakes India Ltd. bagged the Bronze Trophy. Besmak Components Pvt. Ltd. the only SSI Company who participated in this competition was awarded a certificate of appreciation by the Jury.

February-March 201215

Auto News

The one day training programme was organised with the objective to generate awareness on the potential of tools like APQP and their use to develop effective planning and implementation. Understanding the importance of systematic planning and execution of all activities facilitates timely product development and supply while keeping costs under control, the faculty, Mr. Vinay Kelkar, explained about through interactive using audio-visual aids, case studies etc.

Training Programme on Decision making & Problem Solving February 11, 2012 : Mumbai

The one day training programme was organised with the objective to make the participants aware of various problem solving techniques available, the process of problem solving, parameters, approaches and models of decision making and evaluation of alternatives for decision making.

The Faculty was Mr. S.V. Vaishampayan, Electrical Engineer with over 20 years of experience.

Western region

Training Programme on Advanced Product Quality Planning (APQP) February 4, 2012 : Pune

Advanced Product Quality Planning (APQP) involves 75% upfront planning and 25% implementation through production to determine customer satisfaction and continuous improvement.

February-March 201217

Auto News

ACMA (WR) deliberates on Future Technology trends in the automotive sector and its implications. February 23, 2012 : Pune

A National Conference on “Future Technology Trends in the Automotive Sector” was organized by ACMA Western Region ( in association with Australian Trade Commission ) in Pune on 23rd February 2012 . The objective behind organizing the conference was a) to understand the expected technology advancement/changes in automotive sector and 2) its implications, particularly on component manufacturers .

The eminent auto professionals from India & Australia who spoke at the conference are as follows :

S.no. Name & Company Topic covered

From India :

1 Mr. Nagbhushan Gubbi , Head Engineering – Passenger Cars, Tata Motors Trends in light weighting of Automobiles

2 Mr. Suresh Siddiah, Vice President –Engineering , Cummins India Engine design and development Challenges and Opportunities

3 Dr. Arun Jaura, Head – Eaton India Engineering Center Trends in Hybrids/Electric vehicles

4 Mr. Patrick Armer, Director, Visteon Engineering Centre India Emerging trends in vehicle electronics

5 Mr. A. V. Mannikar, Deputy Director & Head- Safety & Homologation Future Advances in Automotive TechnologyLaboratory and Passive Safety Laboratory, ARAI

6 Mr. Rahul Bhargava, Manager - E&Y’s perspective on “Automotive Technology Trends 2020”Automotive consulting practice , E & Y

From Australia

7 Mr. Richard Davies, MD- Davies Craig, Australia Electric Water Pump technology – The end of mechanical

belt driven pumps?

8 Mr. Carl De Koning, Executive Business Development, Interior innovations at Futuris Futuris Automotive Interiors, Australia.

9 Mr. Allan Robins – General Manager Business Optimizing HVAC performance and cost for the Indian marketDevelopment, Air International, Australia

The conference was inaugurated by the Chief Guest ,Dr. Abhay Firodia , Chairman Force Motors Ltd.

In his inaugural address, Dr. Abhay Firodia said that the automotive industry has not changed in last 100 years the way it has changed in last 25 years. Dr. Firodia stated that India will have to play a Major role in advancement of technology in Automotive sector. There are opportunities where India & Australia can work together , he added. Expressing his confidence, Dr Firodia said that Indian engineers are capable to face the challenges emerging due to advancement of technology in Automotive sector.

The conference was also addressed by following dignitaries:

• Minister Dalla-Riva, Minister for Manufacturing, Exports and Trade & Employment and Industrial Relation – State of Victoria, Australia

• Mr. Arvind Kapur, President –ACMA & Managing Director , Rico Auto Industries Ltd.

• Mr. Surinder Kanwar , Vice President –ACMA & Chairman & Managing Director , Bharat Gears Ltd.

• Mr. Patrick Kearins, Australian Trade Commissioner & Consul Commercial for Western India

February-March 201219

Auto News

• Mr. John Conomos AO, Australian Automotive Industry, Envoy

• Mr. Sandeep Balooja , Chairman Western Region-ACMA & President –Group Business Development , Anand Automotive Ltd.

• Mr. Ramchandra Rao , Conference Convener & Executive Director- Automotive , Eaton Industrial Systems Pvt. Ltd.

Welcoming the participants, Mr. Sandeep Baloja , Chairman Western Region –ACMA said that to sustain in current Scenario we must assess the change in demand or requirement from OEMs due to emerging technology advancement.

In his address Mr. Arvind Kapur, President –ACMA referred to the analysis indicating that auto component manufacturer’s margins are under pressure. We need to access the right technology to overcome this situation, Mr. Kapur mentioned. He further said, to encourage the innovation, ACMA has recommended the Government for R&D scheme that can provide finance on lower rate to invest in R&D.

In his address , Mr. Surinder Kanwar , Vice President , ACMA said that as new emission norms are implemented , component suppliers need to

observe and track the strategies of their OEM customers as this could have implications on manufacturing technologies and their product portfolios.Therefore it is better to learn and understand the expected trends and act upon sooner than later, he added.

Speaking at the conference, Minister Dalla-Riva, Minister for Manufacturing, Exports and Trade & Employment and Industrial Relation – State of Victoria, Australia said that as part of the Victorian government’s trade engagement programme we are looking to match Victoria government’s advanced automotive capabilities with Indian needs and opportunities to build an innovative and competitive automotive sector in both India and Victoria.

Addressing the conference, Mr. John Conomos AO, Australian Automotive Industry, Envoy said that the Australian government is keen on participating in a collaborative research with the Indian automobile industry and academia for exploring opportunities in new energy areas. The government has set aside Australian dollar 5.4 bln to conduct further development in innovative technology , such as Australia –India Strategic Research Fund ( AISRF), he added.

Emerging Investment and Trade Opportunities in Macedonia -An Interactive Business Meeting March 6, 2012 : Pune

A high level delegation from Macedonia led by Prime Minister of Macedonia, H.E. Nikola Gruevski, visited Pune. The visiting team included H.E. Zoran Stavreski, Deputy Prime Minister and Minister of Finance, H.E. Bill Pavleskiv, Minister for Foreign Investments, H.E. Mr Slobodan Tashoviski, Ambassador of the Republic of Macedonia and Mr. Viktor Mizo, CEO of the Free Zone Authority for an interactive meeting with the ACMA members.

In his welcome address, Mr. Sandeep Balooja, Chairman Western Region, mentioned that Macedonia is strategically located, having

February-March 201220

Auto News

proximity to automotive manufacturing plants in Cent ra l Europe and Turkey. The Macedonian government, over the past few years, is exerting to improve the business climate of the country, he added.

In his address Mr. Arvind Kapur, President ACMA said that it is good to learn that Macedonia is fast consolidating its position as Europe’s new hub for automotive component production. Macedonia’s geographical advantage makes it an attractive l o c a t i o n f o r a u t o component manufacturing and f inal automotive assembly, he added.

In his Address, the Chief Guest, Mr. Rajeev Kapoor, President & CEO, Fiat India Automobiles Ltd. said that the delegation led by a Prime Minister himself reflects the sincerity of the country towards establishing business association with Indian companies. Earlier the Indian auto industry was dominated by Japanese manufacturers but now many European companies have set up manufacturing units in India that allows for healthy competition in terms of quality. Viewing the current economic scenario, Macedonia seems a lucrative location to invest, he added.

Presenting Macedonian Economic and Political outlook, H.E. Nikola Gruevski, Prime Minister of Macedonia said that Macedonia has highly educated and skilled workforce in engineering and other similar industry. The medium of education at school level and university is English. Out of the 2 million population, 95% speak English.

The highlights of the presentation are as follows:

• Growth : 5.6 % (2010)

• (Services – 45%, Industry – 21 % & Agriculture - 11.3%)

• FDI : 3.9% of GDP

• Average yearly inflation : 2%

• Currency : Dinar

• Credit Rating : BB+

H.E. Zoran Stavreski, Deputy Prime Minister and Minister of Finance presented the “Macroeconomic Overview & Investment Opportunities in Energy & Infrastructure”; he said that Macedonia has the lowest Income tax rate 10% flat in the Europe. On regulatory reforms, he said that we have one stop shop and a company can be registered just in 4 hours with minimum capital requirement.

H.E. Bill Pavleskiv, Minister for Foreign Investments made a presentation on “Trade & Emerging Investment opportunities for Indian Business in Macedonia “. The minister said that Macedonian Constitution guarantees fair treatment for foreign investors. In Doing Business 2012 Report, Macedonia stands at 17 in the ranking of 183 economies on the strength of investor protection index, he added.

Mr. Viktor Mizo, CEO of the Free Zone Authority made a presentation on “Investment Incentives and Overview of Existing Investors”

Key information on investment opportunities are as follows:

• Good gateway for manufacturing for exports to Europe

• Registration for companies within 4 hours

• Special Economic Zones – Lease land, 0% Corporate Tax for 10 years, No personal income tax for 5 years, no VAT & Custom duties for export production, low interest rates on short term/long term borrowings, manpower cost

Mr. Sandeep Bisht, Director (Sales & Marketing) Johnson Matthey, shared his experience of conducting business in The Republic of Macedonia.

In his concluding remark, Mr. Surinder Kanwar, Vice President, ACMA congratulated the Prime Minister and his team for developing such an exemplary economic environment to conduct business in Macedonia.

February-March 201221

Auto News

ACMA IN THE PRESSACMA IN THE PRESS

February-March 201222

Auto News

4th SMED COMPETITION March 13, 2012 : Pune

9 teams and 20 delegates participated in the 4th edition of SMED (Single Minute Exchange of Dies) Competition. Mr. Anil Parasharami, GM-Business Excellence Services, Tata Motors, Chief Guest at the event, said, ‘In the Journey of excellence everybody is winner and no one is a loser’.

Mr. Parasharami gave away the certificates of participation to the SMED teams and the trophies to the winning teams :

Trophy Name of the Company

Gold Fairfield Atlas Ltd.

Silver Gabriel India Ltd., Pune

Bronze RSB Transmission (I) Ltd

The winners were selected by a panel of eminent Jury members including Mr. Vinay kumar R Shah From Force Motors Ltd., Mr. Nagesh Lad from Tata Motors Ltd. and Mr. Ranjit Patwardhan from Bajaj Auto Ltd.

National Committees

Globalisation & Trade Fairs (Domestic & Overseas) Committee

ACMA for the first time organized its Group Participation (India Pavillion) in INAPA 2012 scheduled from 28th to 31st March 2012 at JIExpo, Kemayoran, Jakarta, Indonesia. 9 ACMA companies participated at the show with a total display area of 100 sq. mts.

The India Pavillion was at Hall A1. Besides India the other countries who had country pavilions were Malaysia, Taiwan, Belarus, China, Korea, Thailand, Indonesia, and Singapore.

ACMA through its information booth at the show disseminated information on the Indian Auto-Component Industry. Two ACMA member companies also displayed their product catalogues at the ACMA Information Booth and their product information was freely distributed to business visitors.

INAPA 2012 (The 4th Indonesia International Auto Parts, Accessories and Equip Exhibition)March 28–31, 2012 : Indonesia

Auto News

February-March 2012

The show had a participation of over 820 companies from 21 countries, 10 international groups across the different sectors of the show.

The enquiries generated were mainly from dealers & distributors. Few exhibitors got good business leads also. Besides Indonesia the visitors were mainly from Singapore, Mexico, South America, South East Asia, Taiwan, China, Japan etc. However, this time the number of local visitors dropped by about 15% compared to last year show, because of a protest,

during the show dates, against the government hike in petrol prices. The protesters jammed the Industrial hub of Indonesia – Java.

The India pavilion was visited by senior members from the Ministry of Industry-Indonesia; The first secretary from the Embassy of India in Indonesia, General Motors, PT. Suzuki Indomobile Motor, Volvo Powertrain corporation, Yamaha, Tata Motors Ltd., Distributors, Dealers etc.

The initial analysis of the member’s participation suggests that confirmed orders and enquiries were generated by some of the participants. One of the participants got the orders worth US$ 4 Mln. The exhibitors felt that there is a huge potential in Indonesia being one of the largest economies of ASEAN however the response was mixed from the participating companies.

HR, IR & Skill Development CommitteeSalary Survey 2011-2012

As one of the first-ever initiatives, ACMA’s HR, IR & Skill Development Committee partnered with Deloitte to conduct a Survey on HR Practices and Total Remuneration for its members which was a unique and most cost effective platform for members to understand and share key Human Capital challenges and combative practices and strategies.

90 member companies participated from all the regions and the following figures depicts the distribution, region-wise and category-wise. The three categories created were according to the industry norms of breaking the universe according to their revenues.

Region – Wise Category – Wise

Survey Report was released on 5th March 2012 and shared with all the participating companies.

Survey Findings are:-

• Talent Attraction & Retention : Anxiety over retaining the acquired talent has emerged as a key concern and challenge by 60% of the participant group. 18% of surveyed companies report incremental workload due to insufficient workforce as a trigger force for employee attrition.

• Aligning talent practices to business practices : 58% of the surveyed group expressed aligning people to business objectives via constant communication and development programs as a common HR practice being followed in their respective organization.

• Workforce Capability Development : There is a strong need, as cited by almost 80% of the respondents, to build in employees a sense of ownership towards the organization in order to succeed and sustain business improvement initiatives.

• Leadership Development : 65% of the surveyed participants rely on management development programs for grooming the senior leadership. However there is a challenge in sustaining the initiative and retaining the employees post training. 24% of the participants have shared limited cross functional exposure to be an obstacle in developing managerial/leadership competencies

• Labour & Industrial Relations : Industrial relations, labor availability, wage levels and productivity is a pressing issue for the surveyed organizations. 60% of the surveyed companies have identified this as an important area wherein organizations are taking initiatives that help in contributing to the overall growth of the workforce and increase productivity.

• Changing role of Human Resource :

23

Category 1 Category 2 Category 3

Administrative role

Outsourced Function

Participation maintaining personnelrelations

Participation in strategic objectiveexecution

0% 20% 40% 60% 80% 100%

February-March 201224

Auto News

• Among the survey respondents, there is a significant focus on the administrative and personnel relations activity within the HR Department

• Category 3 organizations also reflect changing responsibilities of the HR in the industry

Keeping in view the convenience of the participants and members, ACMA organized 3 sessions to share the trends from the survey report in March 2012 at Chennai, Gurgaon and Pune. The dates were :

10th March 2012 : Chennai

19th March 2012 : Gurgaon

26th March 2012 : Pune

Feedbacks received from the participating companies are as under:-

• Very good initiative by ACMA

• Informative

• Very useful

• Descriptive

• Comprehensive

• To continue the Salary Survey with additional scope next year.

MSME Committee 1st MSME Summit

As per the Vision 2020 report of ACMA, the Indian auto component industry has a potential to grow over USD 110 billion by the year 2020, and thus be an engine of India’s economic and manufacturing sector growth potentially contributing 3.6% of GDP by 2020, up from the current level of

Vision 2020 : Empowering MSMEs for Competitiveness March 5, 2012 : New Delhi

2.1%. In an effort to strengthen the domestic MSME companies to align with the supply chain to achieve this target, ACMA MSME Committee organized an MSME Summit - Vision 2020 : Empowering MSMEs for Competitiveness.

The first-ever MSME Summit was organized to bring all the stakeholders at one platform to highlight & address the challenges of the MSMEs in the current industry scenario was a success with around 100 participants.

Spread over 5 different sessions addressing the Industry challenges, viz.,

February-March 201225

Auto News

to MSME Secretary which would encourage the Tier 1 companies to buy / procure components from the MSMEs.

Speaking at the Inaugural Session, the Guest of Honour speaker – Mr. N Raman, ED-SIDBI reiterated the need to continuously innovate to maintain Quality and upgrade technology in order to realise growth.

Mr. Kapil Arora of E&Y presented the Challenges of the MSMEs in the current industry scenario.

The topics covered at the Finance & Banking session were : Strategies for Catalyzing Growth of MSMEs by Mr. K G Alai of SIDBI; Lenders Perspective for existing and new ventures both for domestic & global by Mr. Sunil Pant of SBI; Need for Rating of MSMEs by Ms Swati Agrawal of CARE; Need for Risk Capital by Mr. Kirti Shah & Mr. Saket Mehra of BDO Consulting; Role in Empowering SMEs by Mr. Lakshman Gugulothu, CEO of BSE SME Exchange; Factoring Services: an Effective Working Capital Solution for MSMEs by Mr. Devendra Umrao of India Factoring & Finance Solutions.

The Session on Technology: Leveraging IT for Competitiveness touched upon topics such as Perspective of Government Schemes for Competitiveness by Mr. Abhay Bakre, Jt. Development Commissioner of Ministry of MSME; IT Deployment for Integrating the Value Chain by Mr. Balaji Ganesan, a member of IT Committee of ACMA and Div. Manager,

Eaton Infotech Centre; Developing Engineering Capabilities for Tier 2 / 3 companies by Mr. Sunil Arora, Chairman, MSME Committee.

The Session on Technical Skill Development: Support for MSMEs gave a perspective of an Institute by Mr. Dilip Chenoy of NSDC; perspective of an OEM by Mr. Praveen Paranjape of Honda Siel Cars and the perspective of an auto component manufacturer by Mr. S Dwarakanathan of Brakes India Ltd.

At the Strengthening the Supply Chain, while Mr. Deepak Thukral of Maruti; Mr. Vikram Kasbekar of Hero Motocorp; Mr. Rakesh Mital of Ashok Leyland gave the perspective of different OEMs, Mr. S Vasudevan of Wabco India gave the perspective of an auto component manufacturer.

The final Session on Value Creations to Leapfrog provided an opportunity to the ACMA members to share their experiences. While Mr. Kirti Rathod, Dy. Chairman – WR and Executive Chairman, Luxite Industries shared the strategies for Gaining Global Customers Credibility with Zero Defect, Mr. Shailendra Bohra of Bohra Rubber shared on Breakthrough Projects to improve Quality & Productivity. The Road Map of Cluster Programme of ACMA Centre for Technology was shared by Mr. Rakesh Gupta which was followed by a Case Study on Cluster by Mr. Rajiv Sacher of New Swan Autocomp.

Finance & Banking; Technology:Leveraging IT for Competitiveness; Technical Skill Development-Support for MSMEs; Strengthening the Supply Chain; and Value Creations to Leapfrog.

Mr. Sunil Arora, Chairman of the Summit and Chairman of ACMA – MSME Committee gave a warm welcome to all the participants and thanked Mr. R K Mathur, Secretary, MSME for joining the Summit to inaugurate.

Complimenting ACMA’s role at the Inauguration of the Summit, Mr. R K Mathur, Secretary, MSME stated that the Manufacturing industry like members of ACMA, need to absorb the growing educated manpower

resources by providing employment opportunities, as the service sector alone would not be able to support them to that extent. He emphasized on the initiatives of the MSME Ministry in addressing the key challenges appropriately highlighted in the Summit. Further, he invited ACMA for a more meaningful discussion to jointly work on a collaborative strategy to understand the industry requirement and provide solutions.

Earlier addressing the participants at the Summit Mr. Arvind Kapur, President, ACMA proposed the “Pull System” of providing “Tax Concession to large companies”, subject to transaction being completed,

Young Business Leaders' Forum

YBLF organised an Interaction with Mr. Srivats Ram, Immediate Past President, ACMA and Managing Director, Wheels India Ltd and Mr. C Narasimhan, Chief Mentor, ACT and Consultant, Sundaram Clayton Ltd.

Mr. Srivats Ram shared his journey of two decades in the auto component

Interaction with Mr. Srivats Ram, Immediate Past President, ACMA and Managing Director, Wheels India Ltd. & Mr. C Narasimhan, Chief Mentor, ACT and Consultant, Sundaram Clayton Ltd.February 8, 2012 : Chennai

February-March 201226

Auto News

industry since his joining the sector. He emphasized on the importance of learning the techniques of every aspect of business, viz., manufacturing, Quality, Purchase, Sales, Marketing, Human Resources & Finance. He highlighted the significance of inculcating great values such as punctuality, integrity, humility, quality, business ethics etc. by setting as an example. Sharing his views on managing the workplace, he explained the importance of delegation, to help develop the skills and knowledge of your people to their full potential and have effective control on critical areas. Stating the importance of distribution of business, customer-wise and category-wise and not put all eggs in a single basket but spread the risk is critical to survival even in difficult times.

This was followed by an Interaction with the Q u a l i t y G u r u - Mr. C Narasimhan, Chief Mentor, ACT & Consultant, Sundaram Clayton Ltd. Mr. Narasimhan was the key person to bring Deming & a Japanese Quality Medal to an Indian company. He is one of the key initiators for Cluster programmes in India for auto components extended to Leather, Textiles, for ACMA and CII. Presently, he is advisor to major auto component companies. Sharing his experience, Mr. C Narasimhan stressed on the Quality. He opined that Indians have achieved “world class” in all their creations and developments, viz., IT, Pharmaceuticals, hospitality industry and education. He stated that the TQM followed in each Indian company is dependent on the inherent values and culture of the company. Emphasizing that the vendor company is an extension of ones own and forms a part of the Total Employees of one own group. He stated that he is keen to develop the “Indian Production System” depicting the rich Indian culture.

Interaction with Mr. Kou Kimura, CEO & MD, Renault – Nissan India Pvt. Ltd. February 9, 2012 : Chennai

In keeping with its directive to strengthen relationship with the OEMs, ACMA –-YBLF organized an Interaction with Mr. Kou Kimura, CEO & MD of Renault-Nissan India Pvt. Ltd at the Oragadam, plant.

Mr. Thanu Shanmugam, General Manager – Parts Controller & Head – Supply Chain Management presented an overview of the operations of the company.

Interacting with the delegation Mr. Kimura appreciated the level of people resource in India, the quick learning ability, logical thinking, motivation and creativity. He emphasized on the importance of training the already capable workforce to upgrade their skills and knowledge to realise its full potential. Quoting Mr Kimura, “Indian people – not localization – but globalization”.

February-March 201227

Auto News

Visit to Nokia Plant near Chennai & Interaction with Mr. Sivagurunathan, Head – India Sourcing February 9, 2012 : Chennai

In order to understand the techniques of strengthening the supply chain, ACMA – YBLF organized a visit to Nokia - the company is the fine example in Supply Chain management.

Mr. R Sivagurunathan, Head – India Sourcing along with his senior team of officials interacted with the YBLF delegation.

Mr. Subbiah Chokkalingam, Senior Manager – Supply Operations presented an overview of the company and its key activities. Excerpts from the interaction :

• 70% of Nokia’s workforce is women

• In keeping with its brand slogan - ‘connecting people’, Nokia has powerful and continuous employee engagement programs connecting them with the values of the organisation.

• Nokia is looking for suppliers to localize components such as Battery, displays, head-sets and PCB.

• Comparative overview of Auto component manufacturing company & Nokia : Auto comp. manufacturer are known for their efficiency and analytical approach whereas Nokia is focused towards delivery and its people approach.

Mr. Ravi Machani thanked Mr. Sivagurunathan, Mr. Subbaiah for the courtesy extended to the YBLF delegation.

February-March 201228

Auto News

MEMBERS' ROOM

NEW MEMBERS IN ACMA FOLD

Litens Automotive (India) Pvt. Ltd.Gat No. 357, Waghtai Nagar Road,Opp. Chakan-Ambethan Road, Waghjai Nagar,Kharabwadi, Chakan, Tal. Khed, Dist. PuneMaharashtra

Products Manufactured : Timing drive tensioner, accessory drive tensioner, idlers, over running, de-couplers, fead and NVH Products

Quality Certification : TS 16949 by CERMETISO 14001 by CERMETISO 9001:2008 by CERMET

Fleetguard Filters Pvt Ltd.Gat No. 87/1, 87/2, Village NandurTaluka Daund, Dist. Pune

Products Manufactured : Air filters, lube filters, spin on filters, air housing, press components, air intake systems, adhesive, coolants, cartrage filters, and PU filters

Quality Certification : ISO/TS 16949 by Bereau VaritasISO 14001 by Bereau VaritasISO 17025:2001 by NABL

Magnum MI Steel Pvt. Ltd.38.5 KM Stone, Delhi-Jaipur HighwayKhandsa, Gurgaon- 122001

Products Manufactured : ERW/ SS Tubes and components – pipe-inner assembly, pipe diffuser, plate tail, pipe complete exhaust, steering head assembly, etc.

Quality Certification : ISO 9001:2008 by IAF

Norma Group Products India Pvt. Ltd.Sr.No. 662, Mumbai Pune Road,Talegaon DabhadePune- 410506

Products Manufactured : Fuel transport system, crank case ventilation system, and clamps

Quality Certification : TS 16949 by DNV

Allison Transmission India Pvt. Ltd.Plot 21-A, SIPCOT Industrial Growth ParkOragadam, Sriperumbudur Taluk,Kanchipuram District : 602105

Products Manufactured : Automatic transmissions

Meneta Automotive Components Pvt. Ltd.Village Hasamabad, P.O. Bahalgarh,Dist. Sonipat, Haryana

Products Manufactured :Back plates and anti noise shims

Delux Bearings Ltd.C-1, 2625/ 2647/2648, Phase IVGIDC, Dist. SurendranagarWadhwan- 363035, Gujarat

Products Manufactured : Clutch Release Bearings, Taper, spherical, cylindrical Roller Bearings, Metal Chassis Components, Mast Roller Bearings

Quality Certification : ISO/TS 16949:2009 by TUV

Ceratizit India Pvt. Ltd.58, Motilal Gupta Road,Barisha, Kolkata- 700008

Product / Services : Cutting tools & technical ServicesQuality Certification : ISO 9001:2008 by BSI OHSAS 18001:2007 by BSI

GKDITR- Tooling CentreSangot HipalayamArasur (PO)Coimbatore- 641407Tamil NaduLegal Status : TrustServices : GKD Inst i tute for Technological Resources (GKDITR) is anunit of the GKD Charity Trust, Coimbatore,manufacture High Precision Plastic Moulds ,High Pressure Die casting Dies & Press Tools for leading Electrical , Automotive, Electronics , Textile & Medical Industries in India.

Associate Membership

Affiliate Membership