aftermarket - december 2011
DESCRIPTION
Aftermarket is India's first business magazine for the automotive aftermarket . Brought to you by Auto Monitor, it acts as a vital link between manufacturers and dealers and fulfills the communication needs of significant section of automotive professionals and entrepreneurs.TRANSCRIPT
I N D I A ’ S F I R S T M A G A Z I N E F O R T H E A U T O M O T I V E A F T E R M A R K E T
Vol. 1 No. 6 December 2011 68 Pages `50
Brought to you by Auto Monitor
EXTRA MILEAdvaith Hyundai
CUTTING EDGEBosch Automotive Aftermarket
INTERVIEWR Srivatchan, President,
TVS Automobile Solutions
Brought to you by Auto Monitor
Drive Drive the waythe wayAshok Leyland’s organised
driver training to re-route careers Ashok Leyland’s organised
driver training to re-route careers
DECEMBER 2011 AFTERMARKET 5
DESPITE the sales volumes of passenger cars and commercial vehicles being inconsistent for
some time, the expectations of the end consumers of all the vehicle segments are snowballing.
With every new entrant—read MNCs—entering the market, the aspirations of the consumers
are growing by leaps and bounds in a way that it becomes an ever-shifting goalpost, when it
comes to dealerships and aftersales service support. While the customers want the sales points
and service outlets closer to their homes, the challenge for the dealership community is to
cater to the emerging requirements by opening up more sales, service and spares or 3S outlets
in multiple locations. However, the challenge is increasingly becoming severe with the soaring
cost of finances, real estate and manpower costs and the availability of workforce per se.
A recent study shows that potential customers of passenger cars continue to be more
demanding from dealerships. It further stated that less than half of the customers are willing
to travel about 15 km to purchase a car. Around 40 percent of the respondents are not ready
to travel more than ten km to make a purchase. The rest expect the dealerships as close as
five km from their residential colonies. Is it possible for the dealers to manage the emerging
demands with the ever-thinning margins?
Secondly, when the going is good, the dealers are not getting adequate stocks though the
payments towards the same have been made well in advance. However, during the lean sales
period, the dealerships are bombarded with stocks to shore up monthly sales numbers.
The digital and online mania is catching up with the consumers in purchasing vehicles
too. Though there is still a long way to go before potential buyers hit ‘enter’ to seal the
deal, it is necessary to look at what has happened to the travel agencies. It is crucial to have
new thinking amongst the vehicle manufacturers and the dealers to address the changing
consumers’ requirements.
Wishing you much pleasure reading. Do send us your feedback.
DigitAlly
T. Murrali [email protected]
EDITORIAL
7 DECEMBER 2011 AFTERMARKET
NEWS
IN CONVERSATION
SPECIAL REPORT CUTTING EDGE
COVER STORY
CONTENTS
10 New fleet of driving schools to shape next-gen learners
12 Atul Auto to expand its product portfolio
14 Comstar focuses on Indian avenues
18 Leyland Deere loads more punch in aftersales service
22 Suprajit Engineering evaluates new products 26 LGB to introduce silent, lighter chains
34 Marc Nassif, MD, Renault India says that customer satisfaction will take priority while setting up sales & service network
24 Seventh Auto Summit to promote international collaboration
33 Bosch Automotive Aftermarket India inaugurates Delhi Training Centre
Drive Drive the waythe wayAshok Leyland’s organised
driver training to re-route careers Ashok Leyland’s organised
driver training to re-route careers
12
18 22
29
34
24 33
29 Ashok Leyland takes initiative in driver training Ashok Leyland has set up a Driver Training Institute near Salem to provide more trained drivers to the system and impart dignity to the profession
I N D I A ’ S F I R S T M A G A Z I N E F O R T H E A U T O M O T I V E A F T E R M A R K E T
Vol. 1 No. 6 December 2011 68 Pages `50
Brought to you by Auto Monitor
EXTRA MILEAdvaith Hyundai
CUTTING EDGEBosch Automotive Aftermarket
INTERVIEWR Srivatchan, President,
TVS Automobile Solutions
Brought to you by Auto Monitor
Drive Drive the waythe wayAshok Leyland’s organised
driver training to re-route careers Ashok Leyland’s organised
driver training to re-route careers
Cover DesignMahesh Talkar
14
DECEMBER 2011 AFTERMARKET 9
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10
NEWS
AFTERMARKET DECEMBER 2011
MARUTI Suzuki India (MSI) is
planning to double its driving schools
to over 400 in the next couple of
years to train more people about road
safety. Currently, the company has
six Inst itutes of Driving and Traffi c
Research (IDTR) and 192 Maruti
driving schools that train learners
about road safety.
In the last decade, MSI has
trained more than ten lakh peo-
ple and out of these, fi ve lakh people
have been trained under its fl agship
programme—National Road Safety
Mission (NRSM), which st arted in
December 2008.
Managing Executive Offi cer
(Marketing and Sales), Maruti
Suzuki India, Mayank Pareek said,
“So far, we have trained over ten lakh
people and now we are targeting to
double the network of Maruti driv-
ing schools to 400 in the next two to
three years. India loses close to about
`100,000 crore every year in road
accidents and in terms of fatalities,
around 160,000 lives are lost annually
in road accidents. As the automobile
sect or continues to grow, there is a
need to bring in high quality training
inst itutes, which help inst itutionalise
high ‘quality training’ on road safety,”
he added.
Maruti Suzuki has been working
on road safety since 2000. But it was
only in 2008 that the company gave
a formal st ruct ure to its initiatives
on road safety through its fl ag-
ship National Road Safety Mission
(NRSM) programme. Over the last
decade, Maruti Suzuki has developed
two successful forms of driver training
infrast ruct ure: One is in association
with st ate governments (public-private
partnership model) and the other is in
association with its dealers.
To strengthen its road safety ini-
tiatives, the company recently, added
another interesting format in the
form of ‘Road Safety Knowledge
Centre’, in partnership with the
Gurgaon police. This new platform
is aimed at enhancing traff ic edu-
cation and inculcating safe driving
habits for commuters of Gurgaon. In
addition to existing driving train-
ing modules, the centre has been
equipped to offer specialised training
to traff ic violators.
IDTRs offers superior infrastruc-
ture in terms of training quality,
tracks, simulators and modules as
per international norms. The two
IDTRs have trained around 700,000
people, predominantly commercial
drivers. In addition to Delhi, Maruti
Suzuki now has IDTRs at Vadodara
(Gujarat), Dehradun (Uttarakhand),
Rohtak and Bahadurgarh in
Haryana. In addition to driver train-
ing, the Vadodara IDTR offers skill
training to tribal youths thereby
strengthening employability pros-
pects of learners. Several state
governments have shown interest
in setting up similar facilities with
Maruti Suzuki. �
Our Bureau
New fl eet of driving schoolsto shape next-gen learners
India loses close to about `100,000 crore
every year in road accidents and in terms
of fatalities, around 160,000 lives are lost
annually in road accidents. There is a need to bring in high quality training institutes, which help institutionalise high
‘quality training’ on road safety
Bosch Limited, Automotive Aftermarket, P.B. No. 3000, Hosur Road, Adugodi, Bengaluru - 560 030. Ph.: (080) 2299 9228. Fax: (080) 2299 9796. www.boschindia.com
�a�es �f�ces� Ahmedabad� Ph.: (079) 6614 2200 – 08. Ben�a�uru� Ph.: (080) 2213 2081/ 2227 7653/ 2227 9672. Bhubaneswar� Ph.: (0651) 223 2801. �handi�arh� Ph.: (0172) 263 8207. �hennai� Ph.: (044) 2815 5815/ 2815 3916. e�hi� Ph.: (011) 2334 8260/ 61. rnaku�am� Ph.: (0484) 280 5601. �ha�iabad� Ph.: (011) 4316 6145. �uwahati� Ph.:(0361) 213 1647/ 648. ub�i� Ph.: (080) 2223 7056. �ndore� Ph.: (0731) 425 5010. �ai�ur� Ph.: (0141) 238 7048. �o�kata� Ph.: (033) 2217 4221/ 2226 5360/ 2217 6739. Lucknow� Ph.: (0522) 326 4409/ 320 8474/ 75. �adurai� Ph.: (044)2815 5815/ 2815 3916. �umbai� Ph.: (022) 2493 2071. �a��ur� Ph.: (0712) 268 1738. �anchku�a� Ph.: (0172) 458 7735. �atna� Ph.: (0612) 645 0685. �un�ab� Ph.: (0172) 458 7708. �une� Ph.: (020) 6725 4769. �ai�ur� Ph.: (0771) 402 6333/ 444. �anchi� Ph.: (0651) 236 1152. �a�kot� Ph.: (0281) 246 1571. �ecunderabad� Ph.: (040) 2799 0366. �i�a�awada� Ph.: (040) 2799 0266/ 0308.
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12 AFTERMARKET DECEMBER 2011
NEWS
THE three-wheeler manufact urer
Atul Auto based in Rajkot, is set to
increase the number of dealerships
across the nation. From its current
115, it wants to increase the number
to 140. Th is plan comes as a part of
a larger plan under which, the `300
crore company plans to touch a turn-
over of `1,000 crore in three years.
It hopes to achieve this huge leap
by expanding its product portfolio,
exploring export opportunities, enter-
ing new geographical regions within
the national boundaries and also a few
allied business in the same sect or.
In India, the company has pres-
Shambhavi Anand
Atul Autoto expand its dealership
network, product portfolio
The shopfloor
DECEMBER 2011 AFTERMARKET 13
NEWS
13 DECEMBER 2011 AFTERMARKET
ence in 15 st ates including Gujarat,
Rajast han, Bihar, Orissa, Parts of
Maharashtra, Haryana, Punjab,
Jammu and Kashmir among others.
It has just entered the market in
Assam. Th e south Indian market is
handled from Maharashtra. It st art-
ed operations in Madhya Pradesh in
Oct ober 2011.
According to Chairman and
Managing Direct or, Atul Auto,
Jayantibhai J Chandra, “We want to
have st rong presence throughout the
nations like we have in Gujarat and
Rajast han.” Th e company is also plan-
ning to venture into a smaller size of
three-wheeler and a four-wheeler that
will be in the one-tonne capacity in the
class of Maxximo and Ace. “We manu-
fact ure vehicles for common people,
both in CNG and diesel range. Our
new product s will be on the similar
line,” he added. It manufact ures front
engine of 500 kg body capacity known
as Shakti and Gem, which was st arted
two years ago has a rear engine.
Th e product , which is in the nas-
cent st age of development, is being
developed in the in-house research
and development centre of the com-
pany based at Pune, which has test ing
facilities for protos and employs
around 50 people.
It is also planning to set up a new
plant. Th e land for putting up the
plant in Ahmedabad has already been
acquired and the work will commence
soon. Th ey will be putting in an invest -
ment of `150-200 crore. Th e new
three-wheeler and the four-wheeler will
be manufact ured in the new plant. Th e
capacity of its current plant is 24,000
units per annum. Th e company is
increasing its capacity by increasing the
number of shift to two in the vehicle
assembling side and three in the paint
shop side.
In line with its plan of touching
the turnover target of `1,000 crore, it
is also focusing on exports. Currently,
the company exports its passenger as
well as cargo vehicles to Bangladesh,
Kenya and Sri Lanka, where it is in
the seeding st age. It also plans to
export to other countries once it has
created a hold on the current export
markets. Atul is also exploring to
have manufact uring facilities
in Bangladesh. �
Atul Auto’s Rajkot facility
Jayantibhai J Chandra, Managing Direct or and
Chairman, Atul Auto
14
NEWS
AFTERMARKET DECEMBER 2011
AUTO elect ric part manufact urer,
Comst ar Automotive Technologies is
planning to enter automotive after-
market business within a year. Th e
company currently exports 90 percent
of its product ion to Japan, Europe,
North America, South Africa, Brazil,
Canada, Philippines, Th ailand and
China while it will also supply to
OEMs and aftermarket in India.
In a recent interact ion with
Aftermarket, Direct or and Chief
Financial Offi cer, Comst ar Automotive
Technologies, Sat Mohan Gupta said,
“We have st arted working on Indian
aftermarket operations, which is at the
st arting st age of the launch”.
Elaborating on the st rategy for after-
market operations, Gupta st ated that the
company is looking for a limited number
of dealers with fi nancially st rong back-
ground and with good underst anding
of aftermarket business, preferably with
their own network to adequately cover
the bigger areas. “Currently we are look-
ing at around 50-55 dealers in the fi rst
phase,” he said.
Currently, the company is supply-
ing st arter motor and alternators to
Ford, Tata Motors, Jaguar, Land Rover,
Volvo, Ast on Martin, Nissan, Ashok
Leyland and Mazda in the national
and international markets. It has st art-
ed working aggressively with Indian
OEMs to focus on the Indian market
and is expect ing a gradual growth.
Th e company aims to improve its
two key off erings—st arters and alter-
nators. Th e company is also looking at
making its motors compact and elimi-
nating wast e materials. To make the
components lighter, Comst ar is opting
for alternate materials like aluminium to
reduce the component weight.
Th e second line of improvement is
revising the cost st ruct ure of the proc-
ess. Weight reduct ion process may
not always result in reduct ion of cost s.
Lighter materials like aluminium are
more expensive. Th e company fore-
sees the need to focus on innovation
and product development and catch
up with technology. It develops and
designs all its product s in-house in
Chennai. It has recently setup a test -
ing facility and invest ed in enhancing
its manufact uring facilities. It is in the
process of expanding the capacity for
st arter motors as its already utilising 80
percent of the exist ing capacity. It has
spent around `15 crore for the purpose.
Comst ar also has other ongoing
developments round the corner. “We
are also working to support the OEMs
on newer technologies like improving
the effi ciency of vehicles—for inst ance,
enhancing mileage and reducing car-
bon content,” st ated Gupta.
Th e company has exported more
than 60,000 units of st op-st art syst em
for the past fi ve months. However, the
challenge is to supply the product in
the domest ic market. “We could notch
up a turnover of `300 crore in the last
fi scal and are looking at 20 percent
growth in the current fi scal and a major
presence in the domest ic market,” he
added. It is also working on procuring
orders from new OEMs in the future.
Gupta revealed that it is working with
Indian, Chinese, European and North
American OEMs, although it would
take a while before the results would
materialise. Th e company “wants to
consolidate and develop more product s
like st arters and alternators.” He con-
cluded, “We are hoping to cross `500
crore turnover by 2013.” �
Akmal Rahman B
Comstar renews focus on
local avenues
The Comstar plant
15 DECEMBER 2011 AFTERMARKET
NEWS
IMPERIAL Motor Stores, a Mumbai
based spare parts dist ributor, is tar-
geting to maintain its growth rate of
around 30 to 35 percent this fi scal and
is looking to grow its brand portfolio in
the aftermarket business. It is currently
a leading dist ributor for around 14 dif-
ferent auto component manufact urers
in the aftermarket.
“We are in the process of drawing
up a business plan for enhancing our
product range and Stock Keeping Units
(SKUs) for our network dealers. Such
an initiative will help raise our profi le
as a spare parts dist ributor and we are
also evaluating the feasibility of retail-
ing spare parts for select brands,” said
Partner, Imperial Motor Stores, Amit
Sangharaska. He added that though
margins on selling OEM certifi ed parts
are not necessarily better than other
parts, being enrolled as an OE certifi ed
spare parts dist ributor lends credibility
to the dist ributor.
Imperial has been in the automobile
spare parts dist ribution business for
the last fi ve decades and has an exten-
sive dist ribution network for around
fourteen other auto component brands.
It gets around 50 to 55 percent of its
turnover from selling Tata Motors
genuine parts. It notched up
a turnover of `55 crore in the last fi s-
cal and is looking to achieve a growth
of 30 to 35 percent this fi scal.
Currently, its focus is on four-wheel-
er passenger vehicle segment. It has
been anointed as a dist ributor for Tata
Motors Original Parts (TOP) for
Maharashtra region.
A spare parts dist ributor is one
level above a spare parts dealer in the
aftermarket. A dist ributor typically
has agreements with multiple Tier I
and II auto components suppliers for
a given geographical location and sets
up and services/refurbishes the chan-
nel partners. It could also be a direct
dealer for select parts or SKU in cases
where dealers are unable or unwill-
ing to sell the said SKUs. Dist ributors
play a key role in penetration of the
aftermarket for suppliers as well as
OEMs as setting up an exclusive or
non-exclusive dealership network may
not be a viable preposition for every
auto component supplier. Moreover,
the auto component manufact urer can
rely upon the dist ributor for building
the network and maintaining the rela-
tionship as well as refurbishments as
suitable. According to market sourc-
es, Tata Motors is looking to have a
concept of dedicated retail counters
in each town across the country. A
dealer needs to dedicate around 150
to 200 sq feet in exist ing set up for
Tata Motors Original Parts (TOP), if
the concerned dealer does not opt for
exclusive ‘TOP’ dealership. Th e com-
pany has promulgated TOP brand
for its passenger vehicle spare parts in
the aftermarket. �
Our Bureau
Imperial Motors to strengthen command with new strategies, products
Imperial is in the process of drawing up plans for en-
hancing its product range & SKUs for network dealers. Such an initiative will help raise its pro� le as a spare parts distributor. It is also evaluating the feasibility
of retailing spare parts for select brands
16
NEWS
AFTERMARKET DECEMBER 2011
THE Chennai-based German
concrete const ruct ion equipment man-
ufact urer, Schwing Stetter launched
‘Nimo’, a mini concrete mixer with
a capacity of three cubic metre.
Currently, the company has a higher
capacity of concrete mixer of six cubic
metre and is planning to sell around
250 Nimos in 2012.
Managing Direct or, Schwing
Stetter India, Anand Sundaresan said,
“Nimo is expect ed to set a new trend
in residential const ruct ion indust ry
taking the benefi ts in view of the size.
Currently, ready mix concrete has a
share of less than ten percent in the
country and is likely to gain greater
momentum with the indust ry looking
towards a boom.”
Th e Nimo, measuring 6,500 mm in
length, 2,400 mm in width and 3,100
mm in height, has been designed to
cater to the needs of small service
centres, garages and residential con-
st ruct ion indust ry in the country. One
of the major advantages of Nimo is
that unlike the case of larger tran-
sit mixers, which are not allowed to
ply in the city during working hours,
this new model can be used any-
time within or outside the city limits.
Moreover, the lighter weight of the
model also means that it is ideally
suited for manoeuvring through nar-
row lanes as well as softer terrains.
“It is indeed promising to see India
emerging as a major manufact uring
hub for the const ruct ion equipment
indust ry. Th is indust ry is expect -
ed to grow to a size of $6.5 billion
by the year 2014 as reported by the
Confederation of Indian Indust ries
(CII),” Sundaresan said.
Nimo has been designed keeping in
mind the increased infrast ruct ure and
real est ate development pace in India.
Th e new mini mobile concrete mixer is
ideally suited for beating problems such
as traffi c congest ion and deliver con-
crete on time at project sites.
Speaking about the new product ,
Chief Operating Offi cer, Schwing
Stetter India, VG Sakthikumar said,
“Th e launch of Nimo underlines a land-
mark event for Schwing Stetter. It will
bring about a revolution in the const ruc-
tion landscape with its small size, as it
will help negotiate traffi c during the day
and noise pollution during the nights,
and will accelerate the execution and
delivery of time bound project s.” �
Our Bureau
Mini concrete mixer ‘Nimo’ to revolutionise construction landscape
Imperial is in the process of drawing up plans for en-
hancing its product range & SKUs for our network
dealers. Such an initiative will help raise its pro� le as a spare parts distributor. It is also evaluating the feasibil-ity of retailing spare parts
for select brands
Phot
ogra
ph: B
harg
av T
S
NEWS
17 DECEMBER 2011 AFTERMARKET
HINDUSTAN Motors-Mitsubishi
inaugurated BMS Motors in Ranigunj,
Secunderabad, Andhra Pradesh, raising
its dealership count in the country to 41
and its second dealership in the st ate.
BMS Motors already operates a dealer-
ship in Vijaywada in Andhra Pradesh.
Located near Tank Bund-Hussain
Sagar Lake, the showroom, spread over
3,600 sq ft, can display four vehicles
and is manned by half a dozen trained
personnel. Th e service st ation covers a
larger area of 7,800 sq ft and has seven
service bays including body shop. With
its 20 qualifi ed technical employees it
can take care of 10 vehicles in a day.
HM-Mitsubishi has launched other
product s in the Indian market including
the Pajero, Cedia, Montero, Outlander
and Evo X. Hindust an Motors’ manufac-
turing facilities are situated in Uttarpara
(West Bengal), Pithampur (Madhya
Pradesh) and Tiruvallur (Tamil Nadu). It
currently has 48 cust omer touch
points across India including key cit-
ies like Chennai, Mumbai, Bengaluru,
Delhi, Ahmedabad, Pune, Hyderabad
and Kolkata. �
Our Bureau
BMSMotorsdealership
BMS Motors during inauguration
kicked off byHM-Mitsubishi
18 AFTERMARKET DECEMBER 2011
NEWS
REALISING the importance of the
aftersales service in the const ruct ion
equipment indust ry, Ashok Leyland
John Deere Const ruct ion Equipment
(ALJDCE) has had several dry runs
and trials not only on the product , but
also on its new concept, which has been
evolved to address cust omers’ aftersales
service requirements. Th is exercise has
been done for the JV company’s debu-
tante product —435 backhoe loader,
launched recently, and will compete
in the market having a size of about
20,000 units annually.
One of the unique sales propositions
that the company claims is its initia-
tive called CAREi —an acronym for
lower cost of operation minimisation,
availability of machines, reliability of
the equipment, easy-to-do business and
intelligence evolved over a period of
time. Th e key initiative in CAREi
is the commitment the company gives
to the cust omers to rest ore the
machine within 24 hours of
regist ering the complaint.
Company sources told Auto Monitor
that they tried a mock drill of regist er-
ing a cust omer complaint in a temple
town—Palani, about 430 km south of
Chennai to check the time taken by
the company to address a complaint.
Th ey found that the exercise could be
completed in less than 20 hours from
the time of receipt of the complaint
call, including the shipment of the
required spare parts. Th e spare parts
were shipped from its central ware-
Our Bureau
Leyland Deere loads more punch in aftersales service
20 AFTERMARKET DECEMBER 2011
NEWS
house in Gummidipoondi, about 45
km north of Chennai, where the com-
pany has its manufact uring facility.
Similarly, it tried this exercise success-
fully with a cust omer in Bidar, situated
in the north-west ern part of Karnataka
and about 500 km away from Chennai.
After the exercise proved to be suc-
cessful, the company launched this
initiative, sources added.
Recently, ALJDCE has launched
its fi rst product , 435 backhoe loader in
Chennai. Manufact ured by an equal
joint venture between Ashok Leyland
and John Deere, the product is marketed
under the brand Leyland Deere. John
Deere brings in its advance technical
know-how and experience in global con-
st ruct ion equipment space, while Ashok
Leyland lends its indepth knowledge of
the Indian market, expertise in manu-
fact uring, sourcing and dist ribution, to
this st rategic partnership.
Th e company claims that the prod-
uct has been designed to transform the
nature of the const ruct ion equipment
business in India as well as rede-
fi ne the way const ruct ion equipment
product s are perceived and used. Th e
product has been manufact ured to the
address the critical considerations of
lower operating cost , higher produc-
tivity and greater uptime. Powered
by Ashok Leyland’s H-series engine,
the 435 backhoe loader comes with
power shift transmission, larger cabin
with better visibility and roll over
protect ion st ruct ure and falling object
protect ion syst em—key elements for
the operator safety. Besides, the cabin
has three-layer roof to insulate from
heat. It also has an elect ronic monitor-
ing syst em, higher breakout forces and
greater dig depths.
Th e company has invest ed around
`200 crore towards product develop-
ment and const ruct ion of the plant
having a capacity of 10,000 units. It
is planning to introduce two more
product s—the fi rst one being the
wheel-loader to be introduced in 2013.
It hopes to reach full capacity by 2016
with the backhoe loader accounting for
about 90 percent of the sales.
Th e CAREi programme will also
include an extended warranty of a
year after the fi rst year of warranty,
committed rest oration of time for the
equipment and regular and periodic
visits by service engineers during war-
ranty periods and an insurance over of
`two lakh for cust omers operator.
When asked how it was possible
to commit such a service to the cus-
tomers, Chairman, ALJDCE, Dr V
Sumantran said, “We leverage the bus
services to ship spare parts as the buses
run overnight and reach the dest ina-
tion the next day. Our dealers have
also introduced service vans and tech-
nicians with two-wheelers to reach the
cust omers’ place at the earliest possible
time.” Interest ingly, aftersales serv-
ice has been the key in const ruct ion
equipment segment and many play-
ers did not get to the next level due to
poor after sales network.
Th e equipment is initially launched
in the southern st ates, before being
rolled out nationally. Th e JV company
has also announced TVS & Sons as
the dealer for Tamil Nadu and Kerala.
President (dealership line of business),
TVS & Sons, N Krishnamoorthy
said that the company will have fi ve
Tier I dealerships and seven Tier II
dealerships. When asked about the
st rategy, he said that the former will
have more product s displayed and
will be in most ly in big cities, while
the latter will have one product on
display manned by more service engi-
neers. Th is is to support the cust omers’
requirements of aftersales service, since
the equipment is most ly operating in
the rural areas. �
John Deere brings its ad-vance technical experience
in global construction equip-ment, while ALL lends its
indepth knowledge of Indian market & expertise in manu-
facturing & distribution to this strategic partnership
Cabin space
22
NEWS
AFTERMARKET DECEMBER 2011
SUPRAJIT is evaluating new compo-
nents and assemblies and is also looking
to increase its range of cables and
moulded product s for the aftermarket.
Th e company is renewing its focus on
the domest ic aftermarket segment, cur-
rently growing at a double digit rate for
elect romechanical product s.
Th e company derives around fi ve to
seven percent of its total turnover from
the aftermarket segment and is looking
to increase this share to around 10 to 12
percent over the next couple of years. It
is also looking to expand its footprint in
the international markets for OEM and
replacement demands.
Th e company has set up two
dedicated facilities to cater to the after-
market segment as compared to the
conventional pract ice of supplying to
Abhishek Parekh
EXTRA MILE
xxxxxxxxxx
Suprajit Engineering evaluates new products
K Ajith Kumar Rai, Chairman & MD, Suprajit Engineering
DECEMBER 2011 AFTERMARKET 23
NEWS
aftermarket dealers from common pro-
duct ion lines catering to all cust omers.
“Th ere is a tendency to cut down on
supplies to the aftermarket segment
when the OEM demand goes up, if a
company has common product ion lines
for all market segments. We are hop-
ing to avoid this scenario by having
dedicated aftermarket product ion and
marketing so we can grow our market-
share,” said Chairman & Managing
Direct or, Suprajit Engineering, K Ajith
Kumar Rai.
Typically, the cust omer in the after-
market moves on to the next available
replacement if the original product
from a supplier is not available with the
aftermarket dealer. Th is can be a major
setback for any player hoping to est ab-
lish a foothold or grow its marketshare
in the automotive replacement market.
Th e company has est ablished a major
presence in the aftermarket segment
through 225 odd dist ributors covering
all major towns and cities.
Goods and Services Tax (GST) is
one of the critical legislations, accord-
ing to Rai, that can lead to unorganised
or peripheral players moving out of
the aftermarket and helping reliable
OEM suppliers like Suprajit win cus-
tomer confi dence in the aftermarket.
“Many suppliers evade paying taxes in
the aftermarket and can do so due to tax
loopholes. However, if GST is eff ect ive
in closing these loopholes, it is likely to
be a positive development for organised
suppliers in the aftermarket, not to forget
the logist ical advantage that GST regime
can best ow on any supplier,” said Rai.
Th e company is a major supplier of
clutch cables for the automotive sect or
and has a major presence in the two, three
and four-wheeler segment. It will have 14
facilities across the country by middle of
next year and its annual manufact uring
capacity for cables is likely to touch around
120 million units and further to 150 mil-
lion units by the end of next calendar year.
It is aiming to be among the top fi ve cable
manufact urers globally by as early as next
year in terms of value and volume. �
Suprajit Engineering’s annual manufacturing
capacity for cables is likely to touch
around 120 million units and further to
150 million units by the end of next
calendar year. It is aiming to be among the
top � ve cable manufacturers globally
The shopfloor
24 AFTERMARKET DECEMBER 2011
SPECIAL REPORT
FEDERATION of Automobile
Dealers Associations (FADA) is
gearing up to organising its bien-
nial event— Seventh Auto Summit,
in association with Society of Indian
Automobile Manufact urers (SIAM)
at New Delhi on 9 and 10 January,
2012. Th e event will be coinciding
with Auto Expo scheduled from 7-11
January, 2012. Th e theme of Auto
Summit 2012 is ‘Shifting Gears:
Terrain Ahead” and Anand Mahindra
will be the keynote speaker for the
upcoming summit.
Auto Summit will present an
opportunity for the dealers to meet
the industry leaders and other mem-
bers of auto retail fraternity from
across the country to share expe-
riences and exchange ideas. The
summit will bring together all stake-
holders on a common platform to
Nabeel A Khan
Seventh Auto Summit to promote international collaboration
Imag
e: A
kmal
Rah
man
BIm
age:
Akm
al R
ahm
an B
DECEMBER 2011 AFTERMARKET 25
SPECIAL REPORT
mull and address the current and
emerging challenges for sustained
growth of all players connected with
automotive business.
International PlatformAn important agenda of the summit
is to forge an international alliance by
making an international dealer council
a reality. Th e association has invited a
number of countries to participate in
the summit. “We already have confi r-
mations from seven to eight countries
including the US based NADA and
the current chairman of the American
dealers association has agreed to par-
ticipate in the auto summit. We have
circulated the vision paper to 17 coun-
tries and we look forward to signing
a MoU for forming the international
dealership council,” President, FADA,
Nikunj Sanghi told Aftermarket.
Presently FADA is sharing only
national experiences while the auto
indust ry in other countries is far more
mature than that of India. Th e asso-
ciation feels that there are lots of
knowledge and learning which will
come to Indian dealers when it shares
experiences and pract ices on a global
level. Th ere are a range of expertise that
the international dealers can also earn
from Indian dealers, as this is one of
the fast est growing auto markets in the
world. Th e exposure to the developed
markets will help domest ic dealers to
become more cust omers centric.
Towards VibrancyTh e creation of international council
will help not only in knowledge shar-
ing but also the dealer manufact urer
relationship of the other countries and
this platform will help in learning
from each other’s experiences. Th ere
are manufact urers which are operating
in India and also in other countries;
here they have a diff erent rule from
other countries so the international
council may help in bringing com-
mon and helpful pract ices. FADA
has received participation confi rma-
tion from Italy, Brazil, the UK and
Germany and looking forward to get-
ting confi rmation from China, France
and a lot of other countries.
Th e Auto summit will also aim to
off er exposure to the dealers, which they
otherwise do not have access to, at their
current locations. For the inaugural ses-
sion, the association has invited Deputy
Chairman, Planning Commission, Dr
Montek Singh Ahulwalia and hopes
that the summit would help create
awareness to what is happening to the
auto retail indust ry. Th e indust ry body
will also convey to him about what is
required to be done by the government
to make the auto retail indust ry more
vibrant because the indust ry is not only
the biggest revenue generator for both
the st ate and central government but
also the biggest employment generator.
“If you take average direct employ-
ment of 200 people in each dealership
multiplying it to the 7,000 dealerships
across the country, imagine the kind of
employment off ered by the auto indus-
try. Th is presence is very important for
the auto summit.” Sanghi explained. �
An important agenda of the summit
is to forge an international
alliance by making an international dealer
council a reality. The association has invited a number of countries
to participate in the summit
Nikunj Sanghi, President, FADA
26 AFTERMARKET DECEMBER 2011
NEWS
LG Balakrishnan & Bros (LGB), the
Coimbatore headquartered component
manufact urer, has designed and devel-
oped a silent chain for two-wheeler and
four-wheeler applications. Currently, it
is supplying silent chains in the after-
market and is soon expect ed to supply
it to vehicle manufact urers as well.
“Today all the cars are equipped
with silent chains inst ead of belt drives,
therefore we see good potential for
silent chains in the future, which is the
futurist ic project of LGB. We believe
that our inhouse R&D is our core
st rength and we have formed techni-
cal alliances with various companies
for better quality services to clients
in India,” said the company’s Deputy
Managing Direct or, Prabakaran P.
LGB recently has bagged an order
from Ashok Leyland (ALL) to supply
transmission parts for its range of vehi-
cles. “We have received the orders from
Ashok Leyland for the fi rst time since
we incepted in 1937, and we will supply
transmission parts next year. We are
gearing ourselves to supply more parts
to them and we will be growing with
them in a big way,” he said.
For the past ten years, the company’s
main focus is on fi ne blanking technol-
ogy and currently, it has 25 presses to
manufact ure 100 tonne to 1,000 tonne.
LGB acquired fi ne blanking technology
for manufact uring chain plates. It fur-
ther extended its fi ne blanking division
as a separate manufact uring sect ion dur-
ing the late 1990s, to cater to the OEMs
demand for fi ne blanked components.
“Fine blanking is our key area and we
have increased our cust omer base and
st rengthened our exist ing cust omers.
Th is will help us grow further and this
year we will be growing by 40 percent in
fi ne blanking alone,” he said.
In fi ne blanking, the company
manufact ures two-wheeler chassis
components and engine components.
For the four-wheeler segment, it man-
ufact ures engine components, brake
components and transmission parts.
Prabakaran also revealed that the
company has st arted supplying trans-
mission parts to ZF and Eaton and will
be supplying the same components to
Daimler next year.
LGB is also supplying sprock-
ets to BMW motorcycles through
Hero Motors and garnered expertise
in supplying components to premium
motorcycles. It is also in talks with
Harley Davidson to supply a few fi ne
blanking parts and expect ed to supply
the same in 2012.
Bhargav TS
A range of components from LGB
LGB technology to silence market with lighter chains
Phot
ogra
ph: B
harg
av T
SPh
otog
raph
: Bha
rgav
TS
DECEMBER 2011 AFTERMARKET 27
NEWS
To manufact ure
lighter compo-
nents, LGB is
taking several
initiatives and
implementing the
same. As a result
of this, the compa-
ny has engineered
and manufact ured
a chain, which is
200 gram lighter
compared to the traditionally manufact ured chain. LGB is
also working towards cutting the st eel content in the chain
to reduce the weight, cost and improve vehicle’s
fuel effi ciency.
When asked about the progress of the China plant,
Prabakaran replied, “We have temporarily post poned the
plan because we thought labour and infrast ruct ure cost
will less compared to India. However, after exploring fur-
ther, we realised that the labour and infrast ruct ure cost is
higher than that of India. Moreover, we didn’t get any spe-
cifi c advantage over India and our cust omers are happy to
procure the product s from here. Th erefore we have brought
back the machineries for the time being,” he said.
Th e manufact urer has earmarked a capex of `100 crore
towards new machineries and expansion of the
exist ing facility.
Currently, it has four plants in Coimbatore and one
each in Pantnagar, Maneser, Tapukar, Ahmedabad,
Pune, Bangalore and Mysore. LGB has dedicated plant in
Coimbatore to make fi ne blanking components. From these
facilities, it produces seven million fi ne blanking parts,
three million chains and three million sprockets per month.
According to Prabakaran, the company is facing severe
problems due to the non-availability of power and increase
in fuel price. It is not able to meet the demands of its cus-
tomers due to insuffi cient power. And the increase in fuel
price aff ect s the logist ic business and hence the company is
looking to inst all additional power back up units in
their facilities.
For the last three years, LGB has been growing by 25
percent and this year, it is expect ing to grow by 30 percent.
In 2010-11, the LGB Group reported a turnover of `700
crore. In addition to automotive chain, which is the fl ag-
ship product of the company under the brand ‘Rolon’, LGB
makes fi ne blanking, sprockets, forged and cold heading
components, V-belts and other chains for textiles, agricul-
ture and conveyors. �
Prabakaran P, Deputy MD, LGB
28 AFTERMARKET DECEMBER 2011
EVENTS
TAMIL Nadu continues to be a
favoured dest ination for invest ments
not only for the service sect or but also
the manufact uring sect or due to several
fact ors like availability of abundant tal-
ent pool and the infrast ruct ure facilities
including sea, air, rail and road network.
Inspite of a couple of major invest -
ments from the automobile indust ry
going out of Tamil Nadu, the st ate has
yet not lost its sheen. Catalysing growth
to the next level is the fourth edition of
Engineering Expo Chennai, scheduled
from 8-11 December 2011. Th is edi-
tion will further augment the indust rial
act ivities that are synonymous to the
competitive spirit of Engineering Expo
and the st ate as well.
Japan has identifi ed Tamil Nadu as
one of the most potential st ates for its
invest ments recently and towards this,
the Japanese Minist ry of Economy,
Trade and Indust ry (METI) has signed
a bilateral economic co-operation agree-
ment with Tamil Nadu. Th e agreement
is a feather in the cap for the st ate as it
has been identifi ed as a potential invest -
ment dest ination by none other than an
indust rial giant like Japan.
It is est imated that about 240 of the
725 Japanese companies are already in
Tamil Nadu and many more invest ors are
looking at the st ate as an attract ive invest -
ment dest ination. With the Engineering
Expo—organised by Infomedia 18—cel-
ebrating its tenth year of successful
operations this year, primarily by est ab-
lishing itself as a key enabler in propelling
the growth of the manufact uring and
service sect ors, the Chennai edition of the
Expo is shaping up as a
conducive platform in
amalgamating the capa-
bilities of the st ate with
the specifi c needs of the
indust ries.
Countries like Korea,
Japan and Th ailand
have evinced interest
in invest ing in the st ate
particularly close to
the major ports. Tamil
Nadu has a unique dist inct ion of having
three major ports—Chennai, Tuticorin
and Ennore. It also boast s of having
the fi rst corporatised port—Ennore, in
the country.
Th e st ate government, apart from
large indust ries, is also looking at
accelerating growth of Micro, Small
and Medium Enterprises (MSME)
with additional incentives. Tamil
Nadu Small Indust ries Development
Corporation has identifi ed over 2,256
acres in 25 locations to promote
indust rial clust ers for MSME. Th e gov-
ernment is also revamping land pricing
policies to simplify the processes.
CEO, Publishing, Infomedia 18,
Sandeep Khosla st ated, “Th e last three
editions of Engineering Expo has con-
tributed immensely to the engineering
and service indust ries from this part of
the country. ”
The Chennai Advantage With its st rong base in MSME,
Engineering Expo Chennai off ers a
unique advantage, as it becomes the
eye-opener for not only new opportuni-
ties in enhancing the business but also
to augment the exist ing process with
cost eff ect ive technologies. Th ough it is
a common phenomenon, the MSMEs
are the worst aff ect ed due to the rising
cost of fi nance and volatile raw mate-
rial prices. Th ere are options for these
enterprises to become competitive. And
to st ay afl oat, it is necessary to look for
innovative technologies to reduce the
cost of manufact uring while satisfying
the cust omers’ specifi c requirements.
In this scenario, the Engineering Expo
Chennai helps connect not only the
buyer and seller but also the giver and
taker of aff ordable technologies.
More than 250 exhibitors from
diverse engineering and service indus-
tries are expect ed to participate in the
Engineering Expo in Chennai. To be
held in Chennai Trade Centre, which is
about six km from the Chennai airport,
the event will have participants from
several indust rial segments including
machine tools & accessories, hydraulics
& pneumatics, inst rumentation, light
and medium indust ries, automation,
elect rical & elect ronics and process
plant machinery and equipment.
Th e forthcoming event is expect ed to
witness signifi cant growth in terms of
exhibitors as well as visitors. �
The Global Hub: Engineering Expo ChennaiBhargav TS
29 DECEMEBR 2011 AFTERMARKET
COVER STORY
Drive Drive the waythe wayAshok Leyland’s organised
driver training to re-route careers Ashok Leyland’s organised
driver training to re-route careers
Ashok Lelyand’s Driver Training Institute in Namakkal, near Salem has been instrumental in providing trained drivers to the system and impart dignity to the profession.
30 AFTERMARKET DECEMEBR 2011
COVER STORY
T Murrali
HUMAN resource is an important tool
in every aspect of a business—be it man-
ufact uring or be it service. While the
unemployment problem is severely felt
in the country, there are some segments
where there is enough employment but
shortage of people willing to work. And
the truck drivers segment is a promi-
nent example of such a pocket in the
economy. According to recent reports,
about ten percent of the heavy trucks
are idle for want of drivers. Th is is more
so in some pockets for light commercial
vehicles too. While the issues pertaining
to LCVs are addressed to some extent
by the owners themselves doubling
up as drivers, it is not so in the case of
MHCVs.
Th ough this situation has been bur-
geoning in the recent past , the Chennai
headquartered Ashok Leyland realised
long ago and set up a Driver Training
Inst itute (DTI) in Namakkal, near
Salem, about 350 km southwest of
Chennai. Est ablished about 15 years
ago, the object ive of DTI is prima-
rily to provide more trained drivers to
the syst em so that it helps not only to
increase drivers in terms of volumes but
also qualitatively. Trained drivers are
held in high est eem as they can reduce
the carbon footprint, enhance profi t-
ability, besides reducing the number of
accidents, which causes huge losses to
the country.
On an average, about one lakh peo-
ple are killed in road accidents every
year resulting in a material loss of
`60,000 crore per year. Currently, more
than six lakh MHCVs ply in the coun-
try and the numbers will only go up
with National Highways adding about
30 km per day to the exist ing road
length of about 66,000 km. Besides, the
country has over 1.3 lakh km of st ate
highways and about 3.14 million km of
other roads. It is est imated that close to
80 percent of the accidents are due to
negligence of the driver. If drivers are
properly trained, the loss of lives and
related damages (incluidng damage of
properties and goods) could be mini-
mised. With better roads being setup
and the more powerful trucks being
manufact ured, the challenge to produce
trained drivers grows manifold.
According to a recent st udy, it is nec-
essary to add 1.5 lakh drivers every year
from the year 2015 onwards to meet the
burgeoning demand. However, already
close to ten percent of MHCVs are idle
for want of drivers. If the situation con-
tinues, the demand will skyrocket in
the next fi ve years.
With the government of India
announcing a grant to create quali-
fi ed drivers in its current fi ve year plan,
Ashok Leyland is expanding its service
by leveraging the exist ing opportu-
nities. In addition to Namakkal, the
company currently operates one more
DTI in Burari near Delhi.
Speaking to Aftermarket, Assist ant
General Manager (Sales & Marketing
group), Ashok Leyland, KC
Balasubramanian said the company is
currently working on setting up simi-
lar inst itutes in Kaithal in Haryana.
Th is is the fi rst project under the gov-
ernment of India funding model where
land is given by st ate government while
the funds for const ruct ing the build-
ings and laying tracks are disbursed
by the central government and Ashok
Leyland is contributing the required
equipment and vehicles. Under this
model a society is formed, which will
lay down rules to operate the inst itute.
Th e new centre will be ready soon, he
said.
A similar project is also coming up
in Chatia near Bhubaneshwar on the
K Nallathambi, President of Federation of Tamil
Nadu Lorry Owners’ Association
DECEMEBR 2011 AFTERMARKET 31
COVER STORY
Kolkata highway. Th e company has also
received the sanct ion letter from the
government of Madhya Pradesh to set
up a DTI in Chhindwara near Nagpur.
Th e inst itute will commence opera-
tions by March 2012, he said. Ashok
Leyland has also signed an MoU with
Government of Rajast han to set up a
DTI in Udaipur, which will be opera-
tional by Oct ober 2012. “We have
fi nalised the project in Karnataka,
which will be coming up near the
Bangalore international airport. We are
also in discussion with Punjab, Tamil
Nadu, Meghalaya and Haryana to st art
similar inst itutes,” he said.
In the upcoming project s, the role
of Ashok Leyland will primarily be
in running the inst itute by sharing its
expertise, provide trained manpow-
er and support with all the required
training software. According to the
notifi cation, the society will prescribe
the fee st ruct ure so that the inst itute
can run on ‘no-loss-no-profi t’ basis.
Th e role of the st ate government is to
provide a minimum of 15 acre, get nec-
essary grant from government of India
for const ruct ion of the building and
tracks.
According to Balasubramanian, the
country currently has over 30 lakh driv-
ers (2010 Jan data) including 21 lakh
for MHCV, transporting 3,150 million
tonne per year and 60 million passengers
per day. Loss to GDP due to accidents
has increased from `32,000 crore in
2008 to one lakh crore in 2011. Quoting
the data published by Minist ry of Road
Transport and Highways, he said that
over 80 percent of road accidents happen
due to the drivers’ fault, 17.4 percent due
to bad weather, road blockages and cattle
on road, two percent due to mechanical
defect s, 1.36 percent on pedest rian faults
and 1.32 percent due to bad roads.
Highlighting the fact that about
80 percent of the accidents happen
due to negligence of drivers, he said it
is imperative to train the drivers sys-
tematically to save lives and prevent
accident-related damages.
What are the impediments
for the drivers to be developed?
Balasubramanian replied that fi rst ly
the driver community per se is shrink-
ing as the next generation is not getting
into the profession. Th is is primarily
due to varied options available to the
younger generation. Organised training
to tweak skills of drivers will help in
reducing accidents and enhance overall
effi ciency of driving, road discipline and
fuel effi ciency.
In Namakkal, which is one of the
major truck hubs in the country and
the largest in southern India, 74 people
own more than 100 trucks. Th e place
became the Mecca of trucking due to
const raints like lands unfavourable for
agriculture and lack of scope for indust ri-
alisation. However, things are diff erent
now with people getting lot of oppor-
tunities. Th e President of Federation of
Tamil Nadu Lorry Owners’ Association,
K Nallathambi said that lack of recogni-
tion by the society hampers the process
of the nextgen getting into truck driving.
“Now the situation is such that even if the
fl eet operators are ready to pay `20,000 a
month, as salary in addition to perks, they
are not able to get drivers,” he added.
Th e President of LPG Tanker Lorry
Owners’ Association, Nallusamy shared
the same view. He said that all st ake-
holders must join hands to remove the
roadblocks in driver training. Even if fi ve
to 10 percent of fuel is saved due to bet-
ter driving, it will signifi cantly improve
Different kinds of tracks at DTI in Namakkal
Nallusamy , President, LPG Tanker Lorry
Owners’ Association
32 AFTERMARKET DECEMEBR 2011
COVER STORY
the operating economics since bad driv-
ing habits can not only dest roy the
vehicle but also end up guzzling more
fuel, which is a precious commodity, he
said.
“We are not able to get drivers for
even scheduled loads such as LPG run-
ning in pre-determined roads that are
generally good. At least ten percent of
our fl eet is ideal due to driver short-
age. In fact , we have reworked our
capex plan for this year by reducing the
procurement of new vehicles due to non-
availability of drivers,” Nallusamy said.
Th e fact that every year it is necessary
to add more than a lakh drivers seems
to be unachievable due to several con-
st raints including the low capacity of
driving schools, prohibitive cost s, non-
availability of land and lack of motivation
to take up organised driver training and
enforcements in India. It is est imated
that in addition to land cost it is neces-
sary to invest `16-18 crore to set up a
driver training inst itute. Unless there is
increased involvement of government,
things will not change. Balasubramanian
st ated that the DSTC has been running
with an object ive of upgrading the skill
levels of drivers, re-training for road safe-
ty and fuel savings, upliftment of driver
st atus and extract ing better effi ciency out
of the vehicles.
At Namakkal, Ashok Leyland off ers
about 22 diff erent types of courses in
eight categories—each one designed for
specifi c requirements with the dura-
tion ranging from few hours up to three
months. It also trains motor vehicle
inspect ors and fi re-engine drivers man-
ning fi re st ations at airports. At present,
the centre has 14 diff erent varieties of
vehicles (eight buses and fi ve trucks and
one LH drive) including one with left
hand drive to impart training for those
seeking jobs abroad. It hopes to con-
solidate it to ten varieties and make it
contemporary by introducing U-Truck
and BS4 variants of exist ing range
of vehicles.
Th e inst itute has every possible con-
fi guration of road for the trainees to
experience the diff erent road condi-
tions. Besides, it has a full-fl edged
classroom and a laboratory with cut-
sect ion of major aggregates of the
commercial vehicles including engine,
gearbox and axles. In addition, it
also has components that have been
dest royed on account of bad driving—
to make the trainees underst and the
extent of damage that they can make if
the vehicle is not driven properly.
In order to help Ashok Leyland’s cus-
tomers to get specialised training, DSTC
has appointed 16 fi eld trainers recently,
positioned across the country. “We have
plans to have two fi eld trainers in every
st ate, depending up on vehicle parc with
a maximum 48 trainers. Th e main objec-
tive to improve fuel economy,” he said.
Th e government of Tamil Nadu rec-
ognises DSTC in Namakkal while
the Delhi government recognises the
one at Burari. Interest ingly, the Delhi
govt made it mandatory to undergo a
refresher course to renew HMV license.
Currently, it off ers only retraining for
Delhi Transport Corporation. It is
authorised to conduct a test for 300 driv-
ers every year for Delhi Staff Select ion
Board, who are absorbed in Delhi gov-
ernment service. It is currently planning
to introduce a new driver training con-
cept, which will have 50 persons per
batch, commencing from January. It will
be similar to Namakkal in a year’s time,
he said. Both inst itutes have trained
about four lakh drivers so far.
However, despite the potential to
earn a reasonable salary, the intent of
people to join training inst itutes to learn
driving skills is not encouraging. Th is is
primarily due to initial cost s involved in
training courses. People willing to take
up driving prefer to join the exist ing
driver as an assist ant or cleaner and learn
the skills of driving while earning simul-
taneously or on-the-job. Th ough this
method has been prevalent ever since
trucks exist ed, indust ry experts feel that
it may not be suitable in the future since
the vehicles are becoming tech intensive,
calling for skilled hands to drive them. �
K C Balasubramanian, AGM (Sales & Mktg) &
EN Surendran, Sr Manager (Driver Training),
Ashok Leyland
One of the training sessions
DECEMBER 2011 AFTERMARKET 33
CUTTING EDGECUTTING EDGE
WITH a view to train mechan-
ics, aspiring engineers, technicians,
employees, cust omers for a future-ready
skilled workforce, Bosch Automotive
Aftermarket, supplier of automotive
parts and accessories, diagnost ic and
test equipment and authorised car serv-
ice inaugurated its second Technical
Training Centre in India.
Located in New Delhi, the training
centre has been built with an invest -
ment of `30 million in association
with DEG Germany. Th e training
centre will impart training to aspir-
ing engineers, technicians, employees
and cust omers in the northern region
of the country, enhancing their level
of technical competence on emerging
automotive technology and service to
global st andards.
“We are witnessing a lot of change.
Th e automotive indust ry has gradu-
ated from classic Ambassadors to ABS
induced high performance cars, from
carburettor syst ems to elect ronic fuel
inject ion syst ems and conventional
mechanical braking to elect ronically
controlled breaking.
Emissions norms have become more
st ringent and there is greater focus on
safe and economical driving resulting
in a shift from conventional mechanical
syst ems to modern elect ronic sys-
tems. Th is shift has lead to increased
demand for automotive diagnost ics.
Th e indust ry at present however doesn’t
possess adequate skilled manpower to
cater to this increasing demand,” Vice
President, Automotive Aftermarket,
Bosch, S Muralidharan said.
“It is anticipated that meeting this
demand would require a trained work-
force of 2.5 million technicians and
mechanics by 2025. As indust ry leaders
we are attempting to bridge this gap.
We intend to transform technicians
into knowledge workers by equipping
them with skills and confi dence needed
for automotive service, diagnost ic inter-
rogation and resolution,” he added.
Th e centre has a capacity to train
50 people at a time and off ers 70 spe-
cialised training modules for diff erent
skill sets like car service, elect rical
module service, vehicle maintenance
and syst ems, workshop and test equip-
ment applications, diesel fuel inject ion
equipment among others. It also off ers
specifi c modules for st udents, techni-
cians, cust omers, trainers, new and old
employees, sales and service personnel.
Th e course fee ranges from nothing to
`500 a day. Th e centre can also hold
cust omised courses for its cust omers
depending upon their requirements.
On completion of training, candidates
would be awarded a certifi cate from
Bosch Automotive Aftermarket.
Th is is the second largest training
centre of the company in the country
after Bangalore. It has 11 other centres
spread across the nation which train
around 2000 people every month. “We
want to double the number of trainees
in the next three years and might look
at opening more centres in east ern and
west ern regions,” Muralidharan said.
Th e company may open four more such
centres in the next three years. �
Shambhavi Anand
Bosch Automotive Aftermarket India inaugurates Delhi Training Centre
The inauguration of the Technical Training Centre
34 AFTERMARKET DECEMBER 2011
IN CONVERSATION
34
So far, the sales volume is very less.
How are you going to convince the
dealers to join and st ay with you for a
long time?
We will achieve the same by telling
them about our st rategy and act ing
accordingly. We have told them that
we are going to bring fi ve cars by the
end of 2012 and we are doing it. We
will keep them informed about the
developments.
Can you profi le an ideal dealer?
I reiterate that the cust omer is the
best judge. I think the cust omers want
to be pampered. We would like that
our dealers are able to deliver on it.
Dealers should be able to take care of
all the issues that the cust omer is fac-
ing. A dealer who can off er cust omer a
good cost of ownership amongst other
things, is the ideal dealer.
What kind of services will Renault
off er on its product s?
We are off ering an extended warran-
ty and we think the cust omer is smart
enough to underst and. Th is is going to
be one of the attributes that diff erenti-
ates us from the competition. Service is
very important.
What is your future sales forecast ?
Once we reach 100 dealerships in
India, we will be able to reach the annual
sales target of one lakh units. We may
reach this fi gure by FY13 or 15 perhaps.
Th is will completely depend on the mar-
ket and the kind of competition coming
up. However, this is the kind of level we
want to reach in the near future.
Renault India aimed to be among top
three foreign brands in the country by
2015. What is your take on it?
Yes, but you don’t measure a brand
only by sales volume. You measure
brands by certain attributes.
According to you, what are the
attributes of a successful brand?
Th e pillars of a brand are quality,
excellence, reliability, design, st yling,
innovation and roominess.
How serious is Renault about India?
Do you know of any other interna-
tional brand, which has launched fi ve
cars in a period of 15 months in India?
Nobody has made such quick launches
I think. We launched Fluence in May,
Koleos in September, and now showcas-
ing Pulse, while Dust er will be launched
in the second part of 2012. Nobody has
grown a network from zero to 40 in six
months. Nobody has invest ed as much as
we have done in Chennai; no company
Having commissioned 40 dealerships in six months, the Indian arm of the French car manu-facturer, Renault wants to expand its presence across the length and breadth of the country and hopes to enlist 100 dealers by the end of 2012. Th e company will give utmost importance to providing good services stressed Managing Director, Renault India, Marc Nassif while talking to Nabeel A Khan. He made it clear that customer satisfaction will be the prime focus while set-ting up new workshops and outlets in order to associate the brand with quality and effi ciency.
“Soon you will fi nd our network from
Kashmir to Kanyakumari” Marc Nassif
DECEMBER 2011 AFTERMARKET 35
IN CONVERSATION
has over 2,000 engineers that we share
with our alliance partner. We had fro-
zen the plan and then again re-st arted
and built teams to deliver it. Is this not
enough to show our commitment?
Do you think the market has
responded in the same tone as your
commitment?
So far, yes. You know the cust omers
are the judges. It’s not about numbers; we
don’t pretend to fl ow the market; we want
to build a foundation for the brand. And
the brand comes from cust omer satisfac-
tion. What we want is that every Fluence
cust omer or Koleos cust omer be satis-
fi ed and delighted with the product . We
do not have the ambition to go and bat-
tle with the main player who is doing 50
percent of the volume. We will not st art
competing with them by reducing the
price or dist orting the quality of the prod-
uct and not delivering extended warranty;
we want to give warranty up to two years
on our cars. However, if our cust omers
have other preferences, they can always
opt to go to our competition. No issues.
What are your basic parameters for
success?
Well, obviously the kind of services
we are off ering. Th e only way to judge
is cust omer satisfact ion and there are
diff erent ways to measure the same.
Let’s take an example: In Germany, we
talk about German brands but its pub-
lic that Renault in Germany has better
rating among the cust omers than that
of Volkswagen and I am not saying it,
the German cust omer is saying it.
Pulse has been designed by the Mumbai
team. How do you see their design
st rength?
Th e car is completely designed for
Indian roads and Indian cust omers.
Th e Mumbai design team does not only
design product s that are exclusively for
India. Whenever we have global design
project s, the Mumbai design team
is sweating on it. Th e result of their
st rength is shown here in the latest
product (Pulse). If you like this, then
they are of course doing great job.
What are your expect ations from the
new hatchback—Pulse—from the
Indian market?
First , we wanted to increase the vol-
ume so that we can increase the dealers’
network; this is because we want to
be visible and want to create trust and
connect with the cust omer. We hope
this product will help us. Very soon you
will be able to fi nd us from Kashmir
to Kanyakumari. �
36 AFTERMARKET DECEMBER 201136
Phot
ogra
ph: A
kmal
Rah
man
B
Chennai headquartered TVS Automobile Solutions is expanding its service centre network and exploring joint ventures and acquisitions. Besides, it is also looking at chains that have around fi ve to seven workshops to introduce training, IT and service capa-bilities. President, TVS Auto-mobile Solutions, R Srivatchan speaks to Bhargav TS on the company’s plans to have 120 company owned workshop and approxi-mately 400 franchise work-shops by 2014.
“Our aim isto look at the problem from
the customers’ point of view”
DECEMBER 2011 AFTERMARKET 37
IN CONVERSATION
What are all the challenges you’re fac-
ing in the servicing indust ry?
Th e major challenges that we are
facing are arranging quality parts in
a timely manner and making sure that
our franchises and workshops grow
very fast , year-on-year and
month-on-month.
What kind of feedback are you receiv-
ing from service networks?
From our point of view, our cust om-
ers are happy. Since we have two service
verticals, one is the workshop service
and the other is on-road emergency
service networks. We provide two types
of workshop services—one is our com-
pany owned services and other is the
franchise-owned workshops. In all the
services we are receiving good cust omer
responses as a whole, with a few excep-
tions. However, we are addressing those
responses very fast .
Since many companies are entering
into this business, how are you gear-
ing up to meet the competition?
We are slow but st eady, and we
don’t want to make a very aggres-
sive pitch and then subsequently
fi nd our name everywhere. Also, we
recover very fast and will not allow
the cust omers to experience any dis-
satisfact ion. We need to give the right
response to our cust omers and st ake-
holders. Our business model refl ect s
the growth of the market.
Today, the market is at a nascent st age
and only now it is getting recognised
across the world. People are looking at
this service centre as a serious alterna-
tive. Th ere are challenges, at the same
time you fi nd that the authorised service
networks and their st andards have also
increased and many of them are highly
profi table. To compete with them is also
a major challenge for us.
Are there any plans to enter new
geographies?
Yes. We are evaluating our plans
to enter six markets like UAE, Qatar,
Saudi Arabia, Sri Lanka, Turkey and
Th ailand.
Recently, you have joined hands with
a few passenger car manufact urers.
Are there any plans for a tie-up with
two-wheeler and commercial vehicle
manufact urers?
As far as the commercial vehicles are
concerned, we have st arted conduct -
ing few trails and est ablishing our own
capabilities. After exploring the pos-
sibilities, we will be entering into this
market, either as a branded product or
as a white label service to the CV man-
ufact urers. At the moment it is in the
capability building st age.
What is the scope for these kinds of
service networks in India?
In the aftermarket business, if any-
one has fi ve percent market share,
which is around `900 crore, it is con-
sidered huge. As far as ‘MyTVS’ is
concerned, we are less than one percent
where we had a `35 crore turnover last
year and this year we are planning to
do around `80 crore. Th is way, by FY
2013, we can reach one percent.
Earlier, OEMs considered you as
a competitor. What is the current
scenario?
From our point of view, we don’t
consider either the OEMs or the small
garages as our competitors. We can
see the competition in a mature mar-
ket or where the market is limited,
but India is a growing market. Th us,
currently we don’t see any competi-
tion. We are in a position where we
can collaborate with car manufact ur-
ers, car dealers, part manufact urers,
as well as the small garages and tech-
nicians to give a level of service and
st andard of service to consumers—we
can collaborate with all of these peo-
ple. Our aim is to look at the problem
from the cust omers’ point of view and
the cust omers are taken care of as
well. Also we do not encourage spuri-
ous parts. Th e vehicle manufact ures
should encourage selling original parts
and aggressively st art promoting their
parts and make sure that it reaches the
end cust omers.
Th e vehicle population is increasing
day-by-day. Are there plans to expand
the MyTVS service networks?
Yes. We have taken private equity
invest ments of about `80 crore from
Kitara Capital and with our business
model, we believe that with this `80
crore and our promoter’s capital of
`40 crore, we will be able to bring in
approximately `500 crore of invest -
ments into this business. We have
made this as a separate company called
TVS Automobile Solutions. We are
pursuing the expansion of workshop
services all over the India. Currently,
we have 16 workshops and this year
we are planning to put another 30
workshops. Th is will give us formida-
ble network st rength to address the
market needs.
What is the roadmap for MyTVS?
Besides expanding the number of
workshops, we are also exploring joint
ventures and acquisitions in other parts
of India. Acquisitions can be through
the JVs or partnerships. We are also
looking at chains that have around fi ve
to seven workshops and est ablish asso-
ciations with them. Th is way, we will
be able to bring things like training, IT
and service capabilities to enhance their
level of service deliveries and ensure that
cust omers receive good services.
Th erefore by 2014, we will be having
100 to 120 company-owned workshops
and approximately 400 franchise work-
shops. �
38 AFTERMARKET DECEMBER 2011
EVENTS
LEADING international tyre manu-
fact urers are gearing up for next year’s
Tyrexpo Africa 2012 exhibition to be
held from 6-8 March 2012, Sandton
Convention Centre, Johannesburg,
by announcing plans for new prod-
uct s aimed at increasing penetration of
southern African markets.
Among them will be the popular
and successful Infi nity brand, dist rib-
uted by Tyrecor, for whom Managing
Direct or, Charl de Villiers st ated,
“Tyrecor is looking forward to the
upcoming Tyrexpo Africa 2012. We
will be celebrating our 10 year anni-
versary and will make use of this
opportunity to exhibit the brands that
we represent in Southern Africa. We
have recently expanded our Infi nity
UHP range and will showcase many
of these new sizes at the show.
He continued, “Solideal
Const ruct ion tyres and Starmaxx
Agricultural tyres will also feature
in our lineup of product s. Both these
brands have received great support
since being introduced to the mar-
ket and we wish to build on this. We
would like to invite all our cust om-
ers to join us at Tyrexpo Africa 2012
and experience fi rst -hand our quality
brands and join in the 10th anniver-
sary celebrations.”
Singapore-based Stamford Tyres is
another leading manufact urer return-
ing to exhibit at TyrexpoAfrica 2012
and will use the event to launch sev-
eral new product s in both their private
brand, Firenza, and exclusive
brand, Falken.
Taking centrest age will be the
launch of the brand’s fi rst 4x4/SUV
tyre—the Firenza AT186, which will
initially be available in sizes ranging
from 15 to 17 inches.
Th ere will also be a combination
of Falken brands, which are exclu-
sively dist ributed throughout South
Africa by the Stamford Tyres Group.
At the same time the very latest Falken
UHP pattern will be introduced—
the FK453—which will become the
new fl agship pattern in the high per-
formance sect or. Th e FK453 will be
available in sizes ranging from 16 to
22 inches and has a specially designed
tread pattern for super handling and
performance on wet roads.
Stamford Tyres has est ablished a
growing presence throughout South
Africa and currently operates sales and
administ ration bases in Johannesburg,
Durban and Cape Town, Port
Elizabeth and Bloemfontein, which
support st rategically placed warehouses
across the country.
Tubest one, the local dist ribu-
tor of BKT and Nankang tyres, will
be another prominent exhibitor next
March. India’s BKT is one of the
world’s leading manufact urers of Off
Highway tyres and supply Tubest one
Tyrexpo Africa 2012 set to expand footprint across continent
DECEMBER 2011 AFTERMARKET 39
EVENTS
Automechanika Shanghai marks highest number of overseas buyers
with their range of agricultural, con-
st ruct ion, indust rial, earthmover and
port application tyres.
Nankang provides the company’s
passenger tyre range and remains on
the forefront in technology and quality.
Th ey aim to const antly improve com-
fort, speed and safety in transportation.
“Tyrexpo Africa is utilised to raise our
presence in the market, showcase new
and exist ing product s and interact with
show visitors” said Tubest one’s Managing
Direct or, Pieter Kruger.
According to Pieter, delegates
can once again expect an impres-
sive setup from Tubest one, BKT and
Nankang, with plans for a profes-
sional, yet comfortable and relaxing
area for visitors. Th ey urge visitors to
st op by their st ands, C01 and D01,
where Tubest one, Nankang and BKT
exhibiting employees will be happy
to supply more information regarding
their product s.
Techking is another brand keen
to promote its all-round product ion
capabilities, which has seen the recent
launch of new truck and bus tyres in
the TBR range and development of the
new ETMPT 1 tyre for loaders, grad-
ers and backhoe applications.
While tyres will naturally have a
high profi le at the show, visitors will
also have the opportunity to see the
latest in workshop equipment and acces-
sories from leading suppliers. Th ese
will include Automotive Equipment,
Hofmann Megaplan, Launch
Technologies, Leaderquip, Leadertread,
Robert Bosch, SDS Syst emtechnik,
Wheelquip and Haweka.
Tyrexpo Africa 2012 takes place
at the Sandton Convention Centre,
Johannesburg (SCC), South Africa
between 6-8 March 2011. �
AUTOMECHANIKA Shanghai
2011 to be held at the Shanghai New
International Expo Centre from 7-10
December, is expect ing more than
60,000 professional buyers at the show
including delegations from Aust ralia,
Iran, Malaysia, Middle East and
Poland as well as Chinese delega-
tions from Anhui, Hunan, Fujian and
Guangdong. Show visitors will be able
to visit more than 3,600 exhibitors who
will be showcasing their latest product s
and technologies in 160,000 sqm of
exhibition space.
Focus On Hot Industry Issues Th is year’s fringe programme will
explore the current issues ranging from
remanufact uring and new energy to
auto accessories, parts & components
and repair & maintenance.
• International Automotive Congress
2011: Co-organised with Inst itut für
Kraftfahrwesen Aachen University
(ika), the event has confi rmed speak-
ers include professionals and analyst s
from automotive research inst itutions.
Focusing on automotive indust ry
technology trends, this annual con-
gress will cover indust ry development
and new technology, powertain and
energy saving, automotive elect ronic
and safety syst em as well as chassis
and drive syst em.
Automechanika Shanghai is promoted
asone of Asia’s “must attend” largest
trade fairs for automotive parts, equip-
ment and services. Many well-known
international brands including Affi nia,
Federal Mogul, Meguiar, Philips and
Schaeffl er, will use this opportunity
to host show events to enhance their
brand awareness. �
40 AFTERMARKET DECEMBER 2011
SPECIAL REPORT
CAPGEMINI, the technology and
outsourcing consultancy services
recently released its 13th annual global
automotive st udy, Cars Online 11/12.
Th is year’s report reveals increased
interest in buying cars online, and a
growing demand for new vehicles in
mature markets (66 percent, up from
61 percent in 2010). At the same time,
however, many consumers indicated
they were post poning buying a car
until the economy shows more signs of
st ability. New ownership trends such
as car-sharing and technology devel-
opments like smart phone apps are
also impact ing the global automotive
indust ry as the number of channels for
researching and buying cars increases,
and cust omers’ expect ations and choic-
es continue to rise.
Th e st udy surveyed over 8,000
consumers in Brazil, China, France,
Germany, India, Russia, the UK and
US and provides a detailed analysis of
CV buying behaviour around the world
including shopping patterns, social
media usage, online buying, green
vehicles, cust omer interact ion, after-
sales and servicing.
Key fi ndings from this year’s st udy
include the role of the internet and
social media—putting consumers in the
driving seat. Consumer internet behav-
iour, as well as the rise of tablets and
smartphones are increasingly impact ing
the vehicle decision and buying process,
with price, guidance and product infor-
mation continuing to be the primary
features consumers research via the
Internet. Th e role of the internet during
the vehicle buying process is becom-
ing increasingly important, with fewer
people visiting showrooms until very
close to the point of purchase. Web
usage for both purchasing and research
has increased, with the number of con-
sumers researching online reaching
94 percent. Th is is driven in part by
increased use in developing markets.
Consumers are increasingly expand-
ing their web usage during the research
process to include social media, particu-
larly in developing markets. Among the
tools consumers turn to are dealer and
manufact urer social media sites, auto-
motive blogs and discussion groups,
information/ encyclopedia sites, per-
sonal and professional social networking
sites, video and photo-sharing sites, and
social messaging/micro-blogging sites.
71 percent of respondents said they
would be likely to purchase a vehicle if
they found positive comments post ed on
social media sites.
In this year’s st udy, 42 percent of
consumers said they were likely to
purchase a vehicle over the Internet,
up from 37 percent two years ago.
Consumers who are not interest ed in
buying online cite the inability to test
drive the vehicle, to receive full product
and price information and to see pho-
tos/video of the vehicle. Th ese perceived
barriers have remained consist ent over
the past few years, yet they are clearly
addressable and should be capitalised
upon by dealers and manufact urers
with a formal social media and chan-
nel management st rategy to engage with
exist ing and potential cust omers.
Alternative Buying ModelsIncreasing demand for alternative
buying models refl ect s a growing shift
from product s to services as consumers
move from traditional vehicle owner-
ship to “power by the hour.” Nearly 40
percent of respondents would consider
alternatives such as vehicle-sharing, up
from 35 percent in 2010. Th e buying
cycle continues to shrink leaving dealers
with fewer opportunities to interact face-
to-face with cust omers, and the trend
for non-traditional approaches to vehicle
Our Bureau
Capgemini study
highlights increased online demand for new vehicles
SPECIAL REPORT
41 DECEMBER 2011 AFTERMARKET
buying and ownership continues to grow.
Green VehiclesConsumer interest in green vehicles
continues to gradually increase as this
year elect ric vehicles made it to the mass
market for the fi rst time. 44 percent of
consumers (up from 41 percent in 2009)
said they currently own a fuel-effi cient
or alternative-fuel vehicle and 39 percent
are planning to buy a green vehicle (up
from 30 percent in 2009. Th is is expect -
ed to continue as fuel prices fl uct uate,
environmental awareness rises and gov-
ernments provide tax credits and other
incentives. In this year’s st udy, 42 per-
cent of respondents expect full-elect ric
vehicles to be a viable sales option (in
terms of pricing and availability) within
two years, up from 36 percent the prior
year. Additional vehicle types identifi ed
by respondents include hybrid, biodie-
sel, hydrogen fuel cell and natural gas.
However, price remains the biggest
blocker to sales of alternative-fuel vehi-
cles, followed by battery range, reliability
and safety. Th e lack of charging locations
is another concern for consumers consid-
ering elect ric vehicles. Th e automotive
indust ry needs to develop eff ect ive solu-
tions and work with government and
other third parties to ensure that the
necessary infrast ruct ure is in place to
support the move toward e-Mobility.
Customer LoyaltyWhile satisfact ion levels grew, brand
and dealer loyalty again declined this
year. Sixty-one percent of consumers
said they were likely to purchase/ lease
the same make or brand as their cur-
rent vehicle, down from 65 percent in
2010 and 68 percent in 2009. Similarly,
dealer loyalty edged down to 55 per-
cent, compared with 56 percent in 2010
and 63 percent in 2009. Cust omer loy-
alty remains st rongest in the developing
markets, but is declining somewhat
from the very high levels seen a few
years ago. Th is is not surprising as the
number of brands and dealers grows in
the developing markets, providing car
buyers with more choices. Th is is also
the case for loyalty to servicing dealers,
which is declining in the developing
regions as competition increases.
Conclusion Th is year’s Cars Online report
makes it clear that the automo-
tive indust ry faces critical changes
and challenges in the marketplace.
Automotive companies must under-
st and how consumer dynamics are
evolving and consider the impact these
changes may have on their business
in the coming years. Following are
recommendations to help automotive
companies apply the report’s fi ndings
to their own business:
a) Develop a formal social media man-
agement st rategy
Consumers increasingly rely on and
are infl uenced by social media during
the vehicle buying process as well as
the ownership lifecycle. Th e automotive
indust ry has the opportunity to leverage
social media to build brands, gener-
ate leads, drive sales, manage cust omer
relationships and retain cust omers. To
capitalise on this opportunity, com-
panies should develop a formal social
media management st rategy that
includes real-time web list ening, analy-
sis and cust omer outreach.
b)Maximise the consumer interac-
tions with integrated end-to-end
campaigns
As the buying cycle shrinks, deal-
ers have fewer opportunities to interact
face-to-face with cust omers. Yet overall,
the possible cust omer touchpoints have
increased due to the growing number of
channels and devices used by consumers
during the buying process, present-
ing new and diff erent opportunities for
interact ion. Th is development, along
with the increasing sophist ication and
empowerment of cust omers, is driving
a need for businesses to fully integrate
marketing campaigns in order to take
advantage of all possible touchpoints.
c) Experiment with alternative buying
and ownership models
As consumers show budding inter-
est in new approaches such as mobility
packages and vehicle sharing, automo-
tive companies should test the waters.
If these new models take hold they
could have a signifi cant impact on bill-
ing syst ems, cash fl ow and
31
28
24
2333
19
16
13
1224
31
28
31
42
43
9
9
8
8
7
26
23
18
16
12
50%40%30%20%10%0%
1
Dealer or manufact urer social media sites
Th ird-party automotive discussion group/forum
None of these
Th ird-party automotive weblog
Information/encyclopedia site with user-generated content
Personal social networking sites
Online video site/vide-sharing service
Professional social networking sites
Photo sharing sites
Mobile phone applications/advertisements
Social messaging/micro-blogging services
Social bookmarking sites
RSS feeds
Other
Mature Markets
Developing Markets
Use of Social Media and Other Online Tools (% saying)
42 AFTERMARKET DECEMBER 2011
SPECIAL REPORT
fi nancial services.
d) Focus on a holist ic dealer st rategy in
developing markets
Dealer network development in
countries such as China and India
needs to focus on a number of
elements. Proximity is critical as con-
sumers are unwilling to travel far to
buy or service their vehicles. However,
it’s not enough just to saturate a
market; dealer quality is becoming
increasingly important in the develop-
ing regions as competition grows and
consumers become
more demanding. Th is requires
invest ments in training, syst ems and
processes, and a st rong aftersales/serv-
icing programme.
e) Seize the online buying opportunity
Despite growing consumer demand
for online buying of vehicles, parts and
accessories, the capability remains scarce
in most markets. When launching an
online buying model, automotive com-
panies should consider the key fact ors
consumers are looking for: price dis-
count, ease and speed of transact ion, full
price and product details, and the ability
to solve the test drive issue.
f) Keep “green” on your radar
Th e emergence of elect ric vehicles
and e-Mobility may drive a wide range
of fundamental changes in the automo-
tive indust ry, and companies will need
to develop eff ect ive solutions to manage
them. Th e changes are likely to impact
areas such as competition, innovation,
partnerships, and technology syst ems
and processes. �
Your st udy recommended for devel-
oping a formal social media network
management due to increasing
purchases over internet (37 to 42
percent)—would that aff ect dealer-
ship business?
I think social media has not exist -
ed in the most peoples’ thinking
about fi ve years ago. Now it is big and
important, but people are not really
sure on how to use it and leverage it
to a position where I think the market
has matured. Every time where there
is a new channel—like the internet
or lead management—there is always
a concern whether it will change the
st atus between the OEM, the deal-
er and the consumer. Th e answer is
yes; however, up until now, it has
never radically changed. Th e OEM is
st ill using the dealer as the primary
retailer. In social media it is going to
be exact ly the same. Somehow, as an
example, the OEMs will be looking at
dealerships in a certain area and they
will be working with all the dealer
principles. It will help address the
demand spread in diff erent pockets of
the region. So the social media will be
a win-win between the OEMs, dealers
and consumers.
Dealers say their margins are
under pressure due to escalating cost
of real est ate and operational cost s,
and this business is losing its charm.
However, your st udy wanted more
dealerships to be opened. How do you
view this?
Th e dealers work on low margins
and are always under severe pressure.
Th e OEMs will try to push as much
product s as possible to the dealers and
dealers try to push the consumers. And
the consumers will try to reduce the
price. Where does the power sit? In
the old world, it generally sat with the
manufact urers. In the new world ie in
the last ten years, the power sits with
the consumer. Th ose dealers who pro-
vide the sales outlets within 50 miles
and service outlet within ten miles or
so, will be the winner.
What’s the scene in India?
If the OEMs or the dealers in India
think that somehow they can know
what the consumer wants, they can
succeed. More than sales outlets it is
essential to have service points as the
sales happen perhaps once in fi ve years,
while the cust omers need to visit serv-
ice centres more often. Th us service is
critical part of sales. Th e Indian deal-
ers have to take a long-term view. Th e
interest in Indian market for all of the
OEMs is not the size of the market
today but tomorrow. Th erefore it is nec-
essary to plan for tomorrow.
Th e aftersales service ranking
has moved upwards to 4th position
from 7th position last year. What is
the reason?
Over 50 percent of respondents said
that they would buy the next car from
the same place that they get their car
serviced today. It is because of the good
relationships that the service centres
maintain with the consumers. As we
move on to social media— the fast inter-
act ion world—I think there will be more
communication between the after sales
points and the consumers.
Nick Gill, Global Automotive Sector Leader, Capgemini
T Murrali
DECEMBER 2011 AFTERMARKET 43
EXTRA MILE
Abhishek Parekh
PASSION for cars and hardnosed
salesmanship got SVS Subramanya
Gupta into the dealership business and
has also helped him make Bangalore-
based Advaith Hyundai, among the
fi rst of the Hyundai dealers to set up
shop and emerge among the top selling
dealership of the Korean car maker in
the country.
Gupta attributes the success of his
dealership to his management skills and
cust omer driven product lineup from
Hyundai Motors. It has also helped
that Bangalore has emerged as a mega
metro over the last decade spurred by
information technology and manufac-
turing-led employment growth.
“Th ere is a cosmopolitan culture in
Bangalore where people from all walks
of life keep and remain in close touch
with each other. Th is microcosm of the
city has played a key role in our suc-
cess as a dealer,” said Direct or, Advaith
Motors, SVS Subramanya Gupta.
He added that as a dealer, his prior-
ity has always been to give more time to
unsatisfi ed cust omers and go the extra
mile to cater to them. Such eff ort has
Setting an examplePersonal connect with customers has helped SVS Subramanya Gupta of Advaith Hyundai become one of the top Hyundai dealers nationally
Advaith Hyundai’s Bangalore service centre
44 AFTERMARKET DECEMBER 2011
EXTRA MILE
helped him get a ‘word-of-mouth’ fol-
lowing and expand his cust omer base
across multiple cities.
Underst anding cust omers’ require-
ments and presenting them with
numerous options is the key diff eren-
tiator for any dealer. Options could
also be in terms of presenting numer-
ous fi nance options for the cust omers to
enable him/her to shift to a higher seg-
ment car. He believes in leading from
the front. An outgoing salesman, Gupta
has taken upon a target of selling at
least two cars himself daily, irrespect ive
of his location during the day, and has
managed to achieve this target on most
days over the past few months!
Located in the heart of Bangalore,
Advaith has consciously put off the
idea of having round the clock opera-
tions despite signifi cant pressure on the
service centre to do so. “We are able to
manage the work intensity so far, and
will continue to do so going forward.
Starting round the clock service opera-
tions has other operational implications
as accounts a6nd other support serv-
ices also need to be running round the
clock,” he elaborated. Vehicles coming
for servicing, with or without service
appointments, are taken care of within
a working day. In case of major service
or overhaul work, it keeps the car for a
day longer and delivers it to cust omers
at the earliest .
An automobile enthusiast himself,
Gupta had his fi rst tryst with auto-
mobile dealership business running
Kinetic Honda dealership in the nine-
ties and subsequently shifted to running
a Ford dealership. He joined hands
with Hyundai as soon as the Korean car
maker entered India around 1998 and
has been a leading dealer of Hyundai
Motors for the last 13 odd years. Over
the past couple of years, he has been
looking to expand his vehicle range and
has forayed into selling Mercedes Benz
buses, Mahindra tract ors and JCB’s
range of const ruct ion equipments.
When pointed out that a major met-
ropolitan city like Bangalore has only
three Hyundai dealerships thus pro-
viding an open playing ground in a
growing market for cars, Gupta off ers
a diff erent take on the issue. “We have
taken the fi nancial risk and expanded
our operations keeping in mind the
potential of this city even as the overall
market for cars has grown multi-fold
over the last decade. My fellow dealers
in other metros like Delhi and Mumbai
too were provided the opportunity by
Hyundai to expand by opening multi-
ple outlets. Some of them took up the
off er and some did not. Th e point is that
the OEM has the ambition to be the
leading brand and we have been able to
grow with them,” said Gupta.
He added that even during his time
as a leading Ford dealer in Bangalore,
The interiors
The showroom
DECEMBER 2011 AFTERMARKET 45
EXTRA MILE
Gupta was outselling his fellow deal-
ers in the heart of the city despite his
dealership located on the outskirts and
limited market for a premium cars in
the late nineties.
He is already operating four show-
rooms in and around Bangalore and two
more in Mysore, around three hours
drive from Bangalore. Additionally,
he is also running one showroom each
in Hassan and Mangalore. Additional
showrooms are coming up in Kolar,
Ramanagaram and Uttaradi, all within
short driving dist ance from Bangalore.
He already employs more than 1,500
people in sales, service and other sup-
port st aff across showrooms and sells an
average of around 800 to 850 cars every
month from all outlets.
Gupta is gearing up for more act ion
and is already drawing up plans for
additional showrooms in South India
as opportunities are provided to him.
He has been among the top selling
dealers by volume for Hyundai Motors
nationally and claims to be top seller
for Hyundai Motors globally in the
dealership category. Hyundai operates
company owned showrooms in many
markets globally.
Some of the priorities going for-
ward for Advaith are retaining and
attract ing skilled and unskilled man-
power and expand service network in
indust rial zones in and around cities.
Gupta points out that he has made an
eff ort to gather a team of people who
are as passionate about automobiles
as he himself is. Th is has ensured that
worker product ivity and additional
eff ort at going that extra mile has
never been a problem. �
Gupta (in white half sleeve shirt) with his Advaith team
46 AFTERMARKET DECEMBER 2011
AUTO POINT
THE CV indust ry has been able to
successfully fade away the growing
uncertainties in economic situation cre-
ated due to infl ationary pressure, hike
in fuel prices and interest rates since
the st art of second quarter of this fi s-
cal. Upbeat demand from goods carriers
(GC) segment in both medium and
heavy commercial vehicles (M&HCV)
and light commercial vehicles (LCV) on
the back of healthy freight movement
created due to long fest ive season kept
demand for GC at healthy levels till the
fi rst seven months of thecurrent fi scal.
Healthy freight demand ensured
revenue sust ainability for FOs; though
profi tability took a beating owing to rise
in diesel price and interest rates CARE
Research observes that during, the
past two and half years, healthy freight
movement has enabled Freight
Operators (FOs) in keeping utilisa-
tion of their vehicles at higher levels.
Hence, even though the rise in diesel
price and interest cost pulled down their
profi t margins, sust ainability in freight
movement both in primary as well as
redist ribution enabled FOs to increase
freight rates and gradually pass on the
price rise to their cust omers. Healthy
freight movement also ensured consist -
ency of revenues for FOs that kept sales
for GCs at decent levels till now.
With economic act ivity slowing
down, freight movements have st arted
cooling especially post fest ivals. Th e
post fest ive period has been challenging
for the economy. Persist ence of high
infl ationary scenario has compelled
RBI to resort to yet another interest
rates hike last month, which has been
the eighth time in last 12 months.
Growth levels in CV demand to plummet post-festivals
Revati Kasture
Head, Industry Research, CARE Research
Vishal Srivastav
Deputy Manager, CARE Research
Source: CARE Research
Note:
Diesel prices and freight rates is calculated for 16 tonne payload capacity vehicle
key cost component includes fuel cost , interest cost and other operating cost of an M&HCV
0.80
1.00
1.20
1.40
1.60
1.80
Apr
-09
Jun-
0 9 -09
Oct
-09
Dec
-09
Feb-
10
Apr
-10
Jun-
10 -10
Oct
-10
Dec
-10
Feb-
11
Apr
-11
Jun-
11 -11
Freight rates Key costs
Rs/tkm
Aug
Aug
Aug
Trend in diesel price and key cost components
DECEMBER 2011 AFTERMARKET 47
AUTO POINT
However, this move has impact ed
credit growth subst antially and has
also consequently pulled down India’s
IIP (Index of Indust rial Product ion)
growth, which merely managed to
increase by 1.9 per cent in September
2011, the lowest in last two years. Th e
worst aff ect ed has been IIP for mining
and capital goods, that has observed a
drop of around six percent and seven
percent respect ively. Th e mining indus-
try has been hit signifi cantly owing to
uncertainties creeping in due changes
in regulations by various st ate govern-
ments with respect to environmental
norms and illegal mining. Whereas, rise
in borrowing cost owing to increase in
interest rates have led to considerably
drop in invest ments towards expansion
project s across various indust ries.
Th e inventory levels with OEM have
risen subst antially especially in the
goods LCV segment; indicating forma-
tion of demand pressure .Th e impact of
the slowdown in indust rial product ion
and hardening of interest rates have st ill
not adversely aff ect ed the goods com-
mercial vehicle sales, as domest ic sales
observed a growth of 18.5 per cent in
Oct ober 2011 on y-o-y basis. However,
with further analysis it was found that
there has been inventory pile up of
around none-10 days at OEM level
since last four-fi ve months
pointing towards even more inventory
pile up at the dealer level. While dur-
ing same period in FY10, there was
virtually no inventory at the OEM
level. Generally automobile OEMs try
to push sales at dealer levels and keep
minimum or no inventory with them-
selves in order to have comfortable
working capital position.
Hence consist ent pileup of the inven-
tory at OEM level indicates demand
pressure. CARE Research foresees, in
short term period indust ry would wit-
ness correct ion in product ion levels by
some extent to match demand situation
which will consequently lead to drop in
sales growth levels.
Long term outlook for the indust ry
would continue to remain encouraging.
CARE Research est imates the domest ic
CV sales to grow at a CAGR of around
11-12 percent during FY11-FY16 peri-
od. CARE Research believes healthy
long-term macro-economic outlook cou-
pled with increase in government focus
towards development of transport infra-
st ruct ure would fade away the short-term
concerns over economic uncertainties and
rise in interest rates. Th e GC segment
would continue to dominate the growth
as it is expect ed to grow at a healthy
CAGR of around 12-13 per cent during
the same period. �
(Th e report is prepared by CARE
Research, a division of Credit Analysis &
Research. Views expressed are personal.)
Source: CMIE
Trend in IIP
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Mar
-10
Apr
-10
May
- 10
Jun-
10
Jul-1
0
Aug
-10
Sep
-10
Oct
-10
Nov
-10
Dec
-10
Jan-
11
Feb-
11
Mar
-11
Apr
-11
May
- 11
Jun-
11
Jul-1
1
Aug
-11
Sep
-11
IIP: Mining IIP: Manufacturing
IIP: Capital goods IIP: Consumer goods
Comparison of production and sales in goods commercial vehicles segment
Source: CARE Research
0.00
0.05
0.10
0.15
0.20
0.25
0.30
M&HCV GC LCV GC
Uni
ts (i
n m
n)
Prod
uctio
n
Sale
s
April - October 2011
7 days inventory
10 days inventory
Uni
ts (i
n m
n)
Prod
uctio
n
Sale
s
7 days inventory
10 days inventory
M&HCV GC LCV GC
April - October 2010
Waiting period
48 AFTERMARKET DECEMBER 2011
STUDY
WHILE the emissions of developing
countries continued to grow in 2009 (+3.3
percent), led by Asia and the Middle East ,
the emissions of developed countries fell
sharply (-6.5 percent), putting them at 6.4
percent below their 1990 collect ive level. It
should be noted that 2009 emission levels for
the group of countries participating in the
Kyoto protocol were 14.7 percent below their
1990 level.
Early indications suggest that CO2 emis-
sion trends in developing countries in 2010
will continue to increase through growing
consumption of fossil fuels in some of the
larger countries. Th e trend of emissions in
developed countries will rebound in 2010 and
CO2 emissions will likely be at a similar level
to 2008, before the recent fi nancial crisis and
the slowdown in economic act ivity.
In the medium term, CO2 emissions are
expect ed to rebound when economic condi-
tions pick up. In its New Policies Scenario,
the World Energy Outlook (WEO 2010)4
project s that world CO2 emissions from fuel
combust ion will continue to grow unabated,
albeit at a lower rate, reaching 35.4 Gt CO2
by 2035. Th is is an improvement over the
Current Policies Scenario of the WEO and
Emissions grow in developing countries
India among top ten polluters
50 AFTERMARKET DECEMBER 2011
STUDY
is in line with the worst -case scenario
presented by the Intergovernmental
Panel on Climate Change (IPCC)5 in
the Fourth Assessment Report (2007),
which project s a world average tem-
perature increase of between 2.4°C and
6.4°C by 2100.
In 2009, 43 percent of CO2 emissions
from fuel combust ion were produced
from coal, 37 percent from oil and 20
percent from gas. Currently, coal is
fi lling much of the growing energy
demand of those developing coun-
tries, such as China and India, where
energy-intensive indust rial produc-
tion is growing rapidly and large coal
reserves exist with limited reserves of
other energy sources. Without addi-
tional measures, Energy Technology
Perspect ives (ETP 2010) shows that
intensifi ed use of coal would subst an-
tially increase CO2 emissions unless
there was a very widespread deployment
of carbon capture and st orage (CCS).
Two-thirds of global emissions for
2009 originated from just ten coun-
tries, with the shares of China and the
United States far surpassing those of
all others. Combined, these two coun-
tries alone produced 12.0 Gt CO2, 41
percent of world CO2 emissions. Two
sect ors, elect ricity and heat generation
and transport, produced nearly two-
thirds of global CO2 emissions in 2009.
Generation of elect ricity and heat
was by far the largest producer of CO2
emissions and was responsible for 41
percent of the world CO2 emissions
in global emissions. Countries such as
Aust ralia, China, India, Poland and
South Africa produce between 68 per-
cent and 94 percent of their elect ricity
and heat through the combust ion
of coal.
By 2035, the WEO 2010 project s
that demand for elect ricity will be
approximately three-quarters higher
than current demand. Th is demand will
be driven by rapid growth in population
and income in developing countries, by
the continuing increase in the number
of elect rical devices used in homes
and commercial buildings, and by the
growth in elect rically driven indust ri-
al processes. Meanwhile, the share of
renewables in total elect ricity genera-
tion rises from 19 percent in 2008 to 23
percent, 32 percent and 45 percent in
the current policies, new policies and
450 scenarios, respect ively. Transport,
the second-largest sect or, represented
23 percent of global CO2 emissions
in 2009. CO2 emissions in this sect or
decreased between 2008 and 2009 by
1.7 percent.
Th e United States has the highest
level of passenger travel per capita in
the world (more than 25,000 km per
person per year). Until recently, lower
fuel prices in the United States contrib-
uted to the use of larger vehicles, while
in Europe higher fuel prices encouraged
improved fuel economy (along with the
EU voluntary agreement with manufac-
turers). As a result, there is more than a
50 percent variation in the average fuel
consumption of new light-duty vehicles
across OECD member countries.
Global demand for transport appears
unlikely to decrease in the foreseeable
future; the WEO 2010 project s that
transport fuel demand will grow by
about 40 percent by 2035. To limit emis-
sions from this sect or, policy makers
should fi rst and foremost consider meas-
ures to encourage or require improved
vehicle effi ciency, as the United States
has recently done, and the European
Union is currently doing as a follow-up
to the voluntary agreements. Policies
that encourage a shift from cars to pub-
lic transportation and to lower emission
modes of transportation can also help.
Finally, policies can encourage a
shift to new, preferably low-carbon
fuels. Th ese include elect ricity (eg
elect ric and plug-in hybrid vehicles),
hydrogen (eg through the introduc-
tion of fuel cell vehicles) and greater
use of biofuels (eg as a blend in gaso-
line and diesel fuel). To avoid a rebound
in transport fuel demand, these moves
must also be backed up by emissions
Source: Indust ry Reports and ICRA’s Analysis
Top 10 emitting countries in 2009
0 2 4 6 8
China
United States
India
Russian Federation
Japan
Germany
Islamic Republic of Iran
Canada
Korea
United Kingdom
Top 10 total: 19.0 Gt CO2World total: 29.0 Gt CO 2
Gt CO2
November 2011 17
FADA s 7th Auto Summit - 9th & 10th January 2012 at New Delhi
Previous Auto Summits - Flashback
FADA will be organising its major biennial event, viz.7th Auto Summit on 9th & 10th January 2012 at Hotel LeMeridien, New Delhi, coinciding with Auto Expo scheduledfor 7th to 11th January 2012. Having regard to speed-breakersencountered from time to time, the theme of Auto Summit2012 is SHIFTING GEARS - TERRAIN AHEAD . Asearlier Summits, the Auto Summit 2012 is being organisedin association with SIAM.
Dr Montek Singh Ahluwalia, Dy Chairman, PlanningCommission, has kindly agreed to inaugurate the AutoSummit 2012 and to deliver the Inaugural Address. MrAnand Mahindra, Vice Chairman & MD, Mahindra &Mahindra Ltd will be the Chief Guest at the InauguralSession, while Mr S Sandilya, President, SIAM and GroupChairman, Eicher Motors will deliver the keynote address.
As in the past, Auto Summit 2012 will be a two-day event.The day one, i.e. 9th January 2012 will, by and large,comprise workshops on day-to-day management ofautomobile dealerships and best dealership practices. Theday two of the event, i.e. 10th January 2012 will start with aformal Inaugural Session at 10.30 a.m. followed by otherBusiness/Interactive Sessions. As in the previous AutoSummits, industry leaders, senior Government ministers &officials, captains of allied businesses and renownedmanagement gurus are expected to address and interactwith the participants at the 7th Auto Summit.
Auto Summit presents a great opportunity for automobiledealers to meet the industry leaders and other members ofauto retail fraternity from across India and abroad to sharetheir experiences and exchange ideas.
The Auto Summit brings together all stakeholders on acommon platform to mull and address the current &emerging challenges for sustained growth of all playersconnected with automotive business.
The Summit is also an occasion to celebrate and unwind,as cultural evening and networking cocktails & dinner forman integral part of the two-day programme.
Presentation of Automotive Dealer Excellence Awards(ADEA) for the year 2011 forms an integral part of theprogramme.
BackgroundFADA has been organising a biennial Convention ofAutomobile Dealers, viz. Auto Summit at New Delhicoinciding with the Auto Expo, commencing from the year2000. The previous Summits were a grand success, eachSummit attracting 700-800 participants representingdealerships, vehicle manufacturers, oil companies, banks,insurance & finance companies and media from all overthe country and abroad. Practically, all leaders of automotiveindustry and allied businesses have addressed at this forumin the past on various issues including changing paradigmof auto retail, marketing, human resource management,customer satisfaction, relationship management, etc.
The Summit deliberations helped in creating a tremendousawakening and identifying the challenges & opportunitiesfor automotive business as a whole.
Registration and Programme Details
For Registration and Programme Details, please contactFADA Office at the following address:
Federation of Automobile Dealers Associations (FADA)805, Surya Kiran, 19, K G Marg, New Delhi - 110 001Phones: 011 - 2332 0095, 6630 4852, 4153 1495E-mail: [email protected]
The registration form and programme details can also bedownload from FADAs website: www.fadaweb.com
52 AFTERMARKET DECEMBER 2011
STUDY
pricing or fuel excise policies.
Th ese policies would both reduce
the environmental impact of transport
and help to secure domest ic fuel sup-
plies, which are sometimes unsettled by
the threat of supply disruptions, whether
from natural disast ers, accidents or the
geopolitics of oil trade. As these policies
will ease demand growth, they are also
likely to help reduce oil prices below what
the prices might otherwise be.
Indicators such as those briefl y dis-
cussed in this sect ion st rongly refl ect
energy const raints and choices made
to supply the economic act ivities of
each country. Th ey also refl ect sect ors
that predominate in diff erent coun-
tries’ economies. In 2009, the largest
fi ve emitters (China, the United States,
India, the Russian Federation and
Japan) comprised 45 percent of the total
population and together produced 56
percent of the global CO2 emissions and
51 percent of the world gross domest ic
product (GDP).
Although climate and other variables
also aff ect energy use, relatively high
values of emissions per GDP indicate
a potential for decoupling CO2 emis-
sions from economic growth. Among
the fi ve largest emitters of CO2 in 2009,
China, the Russian Federation and the
United States have signifi cantly reduced
their CO2 emissions per unit of GDP
between 1990 and 2009. Th e other two
countries, India and Japan, already had
much lower emissions per GDP.
Worldwide, the highest levels of emis-
sions per GDP are observed for the oil
and gas exporting region of the Middle
East and for the relatively energy-in-
tensive. Economies in transition EITs9.
China emissions per GDP have fallen
close to the level of the United States. As
compared to emissions per unit of GDP,
the range of per capita emission levels
across the world is even larger, highlight-
ing wide divergences in the way diff erent
countries and regions use energy.
In 2009, the United States alone
generated 18 percent of world CO2
emissions, despite a population of less
than fi ve percent of the global total.
Conversely, China contributed a com-
parable share of world emissions (24
percent) while accounting for 20 percent
of the world population. India, with 17
percent of world population, contributed
more than fi ve percent of the CO2 emis-
sions. Among the fi ve largest emitters,
the levels of per capita emissions were
very diverse, ranging from 1 t of CO2 per
capita for India and 5 t for China to 17 t
for the United States.
Indust rialised countries emit far
larger amounts of CO2 per capita than
the world average. However, some
rapidly expanding economies are sig-
nifi cantly increasing their emissions
per capita. For example, between 1990
and 2009, among the top fi ve emitting
countries, China increased its per capita
emissions by over two and a half times
and India doubled them. Clearly, these
two countries contributed much to the
8 percent increase of global per capita
emissions over the period. Conversely,
both the Russian Federation and the
United States decreased their per capita
emissions signifi cantly, by 27 percent
and 13 percent respect ively, over the
same period.
India’s Pro� leIndia emits more than fi ve percent
of global CO2 emissions, and emis-
sions continue to grow. CO2 emissions
have almost tripled between 1990 and
2009. Th e WEO 2010 New Policies
Scenario project s that CO2 emissions in
India will increase by almost 2.5 times
between 2008 and 2035. A large share
of these emissions are produced by the
elect ricity and heat sect or, which rep-
resented 54 percent of CO2 in 2009, up
from 40 percent in 1990.
CO2 emissions in the transport sec-
tor accounted for only nine percent of
total emissions in 2009, but transport
is one of the fast est growing sect ors.
In 2009, 69 percent of elect ricity in
India came from coal, another 12 per-
cent from natural gas and 3 percent
from oil. Th e share of fossil fuels in the
generation mix grew from 73 percent
in 1990 to 85 percent in 2002. Th e
share of fossil fuels has declined st ead-
ily since then, falling to 81 percent in
2006, although increasing back up to
84 percent in 2009. Although elect ric-
ity produced from hydro has act ually
risen during this period, the share fell
from 25 percent in 1990 to 12 percent
in 2009.
India is promoting the addition of
other renewable power sources into its
generation mix and had an inst alled
capacity of 17 GW of renewable ener-
gy sources on 30 June 2010. Under
its National Act ion Plan on climate
change, India plans to inst all 20 GW of
solar power by 2020. With an inst alled
wind capacity of 12 GW in June 2010,
India has the world’s fi fth-largest
inst alled capacity of wind power.
Of the BRICS countries, India has
the lowest CO2 emissions per capita (1.4 t
CO2 in 2009), about one third that of the
world average. However, due to the recent
large increases in emissions, the Indian
ratio is more than two times that of its
ratio in 1990 and will continue to grow.
India’s per capita emissions in 2035 will,
however, st ill be well below those in the
OECD member countries today.
In terms of CO2/GDP, India has
continuously improved the effi ciency of
its economy and reduced the CO2 emis-
sions per unit of GDP by 16 percent
between 1990 and 2009. India aims to
further reduce emissions intensity of
GDP by 20-25 percent by 2020 com-
pared with the 2005 level. �
(Extract s: ‘CO2 emissions from
fuel combust ion’ - International
Energy Agency)
54 AFTERMARKET DECEMBER 2011
STUDY
Indian port sector: Growth plans ambitious, uncertainty
over implementationCARGO growth at Indian ports was mod-
erate in 2010-11, with the overall increase
in throughput at four percent year-on-year
(yoy). Th is resulted from the low growth in
cargo volumes at the major ports (1.6 percent
yoy increase) because of a signifi cant reduc-
tion in volumes of iron ore, a major cargo
category, following Karnataka’s banning of
iron ore exports since August 2010. Th e cargo
growth at the non-major ports however con-
tinued to be robust , with volumes increasing
by nine percent on yoy basis. In market share
terms, the non-major ports increased their
share marginally from 34 percent of the total
cargo in 2009-10 to 35 percent in 2010-11.
Th e outlook for cargo growth remains favour-
able, given the robust domest ic demand from
key end-user indust ries. Th e main cargoes,
the volumes of which are expect ed to drive
growth, include coal; crude oil and containers.
Accordingly, port ventures with an exposure
to these cargo categories st and to gain.
While the favourable demand—supply
scenario in the Indian port sect or augurs
well for indust ry participants, from a cred-
it perspect ive ICRA believes that its rated
portfolio of companies is faced with certain
challenges the most prominent of which
include: project execution risks given that
many companies are in a moderate to large
scale capital expenditure mode; the harden-
ing interest rate environment; regulatory risks
emanating from an evolving policy environ-
ment; cargo concentration risk particularly
for entities having a high exposure to iron-
ore cargo given the ongoing uncertainties on
iron-ore mining act ivities in various st ates;
possibility of temporary capacity overhang in
some cargo segments and incremental risks
associated with expansion in scope of busi-
ness/inorganic growth.
BackgroundIndia’s long coast line of over 7,500 km
is home to the country’s 13 major ports and
around 200 non-major ports located along
the west ern and east ern corridors. While
the number of non-major ports is large, only
about one-third of them undertake regular
commercial operations; these ports are locat-
ed mainly in Gujarat, Andhra Pradesh, Goa,
and Maharashtra.
Th e trend is expect ed to gain tract ion
with the major ports increasingly moving to
a landlord/asset ownership model, allowing
the private sect or a dominant role in capacity
additions and port services and operations.
Cargo Trends & OutlookCargo traffi c at Indian ports increased to
883 million tonnes (mmt) in 2010-11 from
850 mmt in 2009-10. Th e lower yoy increase
in cargo at 4 percent in 2010-11 (14 percent
yoy growth in 2009-10) may be attributed
partly to the larger cargo base and partly to
the low growth (two percent yoy in 2010-11)
in the volume of cargo handled by the major
ports. Th e weak performance of the major
DECEMBER 2011 AFTERMARKET 55
STUDY
ports followed mainly the decline in
volumes of one of the principal com-
modities, iron ore, by 13 percent yoy
to 87 mmt in 2010-11 from 100 mmt
in 2009-10 with iron ore exports being
banned in Karnataka. Th e non-ma-
jor ports on the other hand reported
a nine percent yoy increase in cargo
volumes and as a result gained market
share (35 percent in 2010-11 as against
34 percent in 2009-10).
Growth Estimates Among the major ports, Kandla in
Gujarat continued to lead in terms of
cargo volumes (82 mmt in 2010-11, at
three percent yoy growth) followed by
Vishakhapatnam in Andhra Pradesh
(68 mmt at four percent yoy growth).
While cargo volumes at all the major
ports increased in 2010-11, although
in single digits, the volumes at New
Mangalore and Paradip reported a
dip of 11 percent and two percent yoy
respect ively, primarily because of their
high exposure to iron ore. Among the
non-major ports, Mundra Port and
Special Economic Zone Limited locat-
ed in Gujarat was the largest operator
(52 mmt in 2010-11), followed by
Essar Ports (40 mmt) which has two
facilities at Vadinar and Hazira , both
located in the st ate of Gujarat.
By cargo mix, petroleum, oil &
lubricants (POL) continued to account
for the largest share of 32 percent
in 2010-11 (31 percent in 2009-10),
followed by containers (20 percent
against 18 percent). ICRA’s view on
cargo growth over the medium to long
term remains positive based on the
level of act ivities in the key end-user
indust ries. Going forward, growth of
traffi c at Indian ports is expect ed to
be driven mainly by higher volumes
of coal (to meet the requirements of
the large number of current and pro-
posed thermal power project s based on
imported coal); containers (given the
market under-penetration and poten-
tial for cost savings); crude oil and
POL (large upcoming refi nery capaci-
ty); fertilisers (st rong domest ic demand
and low self-suffi ciency); and st eel
(mega project s proposed in the east ern
part of the country).
Port MilestonesAccording to the est imates of the
Minist ry of Shipping (MoS), cargo
volumes in India are expect ed to breach
the one billion tonne mark in the cur-
rent fi scal (2011-12); the two billion
tonne mark by 2016-17 (seven-year
CAGR of 13 percent); and 2.4 billion
tonnes by 2019-20 (10-year CAGR of
11 percent). Growth at the non-major
ports is expect ed to outpace that at the
major ports, with the former command-
ing a 51 percent share of the total cargo
in a decade’s time. By composition, coal
(expect ed 10-year CAGR of 18 per-
cent) and containers (expect ed 10-year
CAGR of 15 percent) are expect ed to
drive much of the growth. Th us, port
ventures with a higher exposure to
these cargo categories are favourably
placed.
On the supply side, the Indian port
sect or has seen certain major mile-
st ones being reached in the recent past ,
including the commissioning of the fi rst
phase of operations at: International
Container Transhipment Terminal,
Vallarpadam; solid cargo port terminal,
Dahej; coal terminal, Mundra; bulk ter-
minal, Hazira; and a greenfi eld
port, Dhamra.
Th e ambitious National Maritime
Development Programme (NMDP)
has failed to live up to expect ations
because of the absence of various ena-
bling fact ors and is due to complete its
tenure in March 2012. To replace it,
the MoS has formulated the Maritime
Agenda 2010-20, outlining the next
decades’ programme for the develop-
ment of the Indian maritime sect or.
Three-Pronged StrategyAs a part of its eff orts to improve
the inst itutional framework for PPP
project s at major ports, the Central
Government const ituted a commit-
tee under the Chairmanship of BK
Chaturvedi in February 2010 to
review and recommend revisions in
the Model Concession Agreement
(MCA), which is the basic contract ual
Source: Indust ry Reports and ICRA’s Analysis
POL, 32%
Containers, 20%
Other Cargo, 17%
Iron-ore, 15%
Fertilisers & Fertiliser Raw
Materials , 4%
Coal, 13%
Cargo Mix of Major Ports - 2010-11
56 AFTERMARKET DECEMBER 2011
STUDY
framework governing the PPP model
in India. Th e key recommendations
of the committee (made in September
2010) include the following: A three-
pronged st rategy may be adopted to
improve the tariff setting mecha-
nism as follows: st reamlining TAMP
procedures and building in-house
capacity in the short term; delegat-
ing the tariff setting funct ion to the
respect ive port trust s over the medi-
um term and allowing market forces
to determine tariff s over the long term
with the role of the port authorities
being limited to oversight.
While ICRA does not expect the
viability of port project s to be adversely
impact ed by the additional land cost ,
as that would be governed more by
other st rategic considerations such as
cargo potential, extent of handling
infrast ruct ure, and draught, the higher
land cost is likely to lead to higher cap-
ital intensity, which in turn would lead
to some moderation in the return on
capital employed.
Capacity ExpansionTh e Maritime Agenda envisages
a cumulative invest ment of around
`2,774 billion in the port sect or over
the next 10 years in three phases.
Th e non-major ports are expect ed to
account for 61 percent of the pro-
posed invest ment, and the major ports
for the rest . Capacity expansion by
way of const ruct ion of new berths
and jetties accounts for 65 percent of
the total outlay, and other support
works for the rest . With the envis-
aged capital expenditure being made,
the capacity of the port sect or would
likely increase to over 3 billion tonnes
by 2019-20; the non-major ports
would account for 53 percent of the
enhanced capacity and the major ones
for the rest 47 percent. Th e project ed
capacity expansion and the expect ed
cargo growth would bring down the
utilisation levels at the major ports
from the current 90 percent levels to
around 80 percent, paving the path
for better service.
Key policies and framework agree-
ments to be reviewed periodically and
modifi ed from time-to-time include
the policy for land use, model docu-
ments like RFQ , RFP and MCA and
the guidelines for fi xing of tariff s.
Also, a regulator is to be est ablished
to oversee the act ivities and tariff s of
the non-major ports. Greater focus is
to be placed on environmental aspect s
and an environment clearance mech-
anism to be inst ituted to expedite
progress of project s.
Hub PortsHub ports to be developed to receive
13,500+ TEU2 containerships; at
least two such hubs to be est ablished
on the east ern coast (Chennai and
Visakhapatnam) and two on the west
coast (Jawaharlal Nehru and Cochin
ports).
A specialised Maritime Finance
Corporation is to be formed with the
equity of ports and fi nancial inst itu-
tions to appraise and fund port project s,
given their specialised nature and
requirements.
Progress & PoliciesA special purpose vehicle, Indian
Ports’ Global, is to be set up to make
invest ments in ports overseas. A mon-
itoring and feedback mechanism to be
inst ituted to track progress
at the level of the ports and at the gov-
ernment‘s level so that timely act ion on
slippages in progress and implementa-
tion can be taken.
Apart from the above, another
recently formulated policy is the Policy
for Prevention of Monopoly at Major
Ports, 2010, which seeks to rest rain
operators with exist ing facilities at a
port from bidding for similar terminal
development project s within the same
port and/or within a radius of 100 km
of it. Th e intention is to allow develop-
ment of healthy market competition
and prevent capacity concentration,
which may impact pricing and per-
formance st andards. �
(Courtesy : ICRA Research)
-100 200 300 400 500 600 700 800 900
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
424 464 519 531 561 570
155 186203 213
289 314
In M
illio
n To
nnes
Major Ports Non-Major PortsSource: Indust ry Reports and ICRA’s Analysis
Volumes at indian ports
DECEMBER 2011 AFTERMARKET 57
PRODUCTS
Bottle Type JackVANJAX Sales, off ers a complete range of equipment for automobiles as well as two-wheel-ers servicing garage workshops. Besides bottle jacks from two tonne upto 50 tonne required by individual motorist s
or for heavy earth moving machineries. Th e Chennai-based company also off ers hydraulic trolley (fl oor) jacks for small, medium and large garages from two tonne upto 10 tonne, hydraulic equipment for repairing damaged cars due to acci-dents and many other useful items indispensable for every garage owner whether small, medium or large.
Vanjax Sales Phone : 0091- 44 - 4282 1000/ 2625 5300/ 2625 4875Fax: 0091- 44 - 4598 [email protected]@vanjax.com
Hydraulic Floor Portable (manually Towable) CranesVANJAX Sales, based in Chennai manufact ures hydraulic fl oor portable (manu-ally towable) cranes in light and heavy duty types. Th ey have all st eel fabri-cated frames, and are available in st andard capacities ranging from 1,000 kg upto 2,000 kg, or tailor-made to individual cust omer’s requirement upto 5,000 kg. Highly suited for automobile garages and tool rooms, these portable hydraulic fl oor cranes are capable of versatile uses in almost all indust rial est ablishments small, medium or large.
Vanjax SalesPhone : 0091- 44 - 4282 1000/ 2625 5300/ 2625 4875Fax: 0091- 44 - 4598 [email protected]@vanjax.com
Vanjax Hydraulic Workshop PressesAvailable In Capacity 12 tonne (vxhwp-51201) and 20 tonne (vxhwp-52002), they have been found to be most useful for both inst alling and removing/disman-tling bearings / pinions / bushes, as well as various other bending or st raight-ening jobs in auto servicing garage workshops.
Vanjax SalesPhone: 0091- 44 - 4282 1000/ 2625 5300/ 2625 4875Fax: 0091- 44 - 4598 [email protected]@vanjax.com
Pneumatic Control ValvesDARLING Muesco India off ers globe st yle pneumatic control valves that are available for any control application. Built to take the punishment imparted by many processes, including extreme pres-sure drops, these valves are backed by the most respect ed name in the valve indust ry. In addition to the st andard models, also available are valves to cust omer specifi cations. Th e range of control valves includes globe type, angle type, ball type, butterfl y type, diaphragm type, etc. Th e control valves are available in
pneumatic diaphragm act uator, single-phase elect ric act ua-tor, three-phase elect ric act uator, pneumatic rotary act uators in case of ball and butterfl y valves. Range of material selec-tion for valve body/bonnet and trim are available to suit specifi c application valves in diff erent model and are available up to 1500 class in fl anged end butt weld and socket weld connect ion. Special trim form, such as low noise trim, anti-cavitation trim and reduced trim are available in almost all models of the control valves. Varieties of accessories are also available to compliment the working of control valves.
Darling Muesco (India) - Ahmedabad - GujaratPh: 079-2583 2578, Fax: 079-2583 4392, Mob: 09327477602Email: [email protected], Website: www.darlingmuesco.com
58 AFTERMARKET DECEMBER 2011
PRODUCTS
The High Street Collection
THE High Street Collect ion off ers genuine Haiton Leatherin a range of textures and colours that are high on design and richness. It’s all it takes to transform your interi-ors to one that speaks high fashion. You can be the designer. It’s your car. So choose what you’d like to have inside. In addition to the wide range on off er, Haiton also allows you the freedom to create your own concepts. Mix & Match and choose the colour, texture and design of your liking and they will fashion it for your car. It’s personalisation like never before.
Hilton Furnishing SolutionsMobile:+91 95661 11551E-mail: [email protected]
Wheel Balancers
PROFESSIONAL wheel balancer with 15.5” TFT moni-tor suitable for 10”-24” rim dia and maximum 65 kg wheel weight.
• Suitable for Car and LCV wheels• TFT Monitor• Static (Single plane) and Dynamic (Two plane) balancing• Simultaneous display of Inner and Outer plane results• Two modes of measurement - Normal & Fine• Five modes of Alloy wheel funct ions• Self checking, on-line ERROR display facility• Dimension setting in “INCH” or “MM”• Unit conversion in “grams” / “ounces”• Self calibration• Automatic dist ance input mechanism• Mid-centering device for positioning and Rim accuracy• Quick change lock nut to ensure fast mounting & removal
of wheels• Automatic st art with wheel guard closure• Unbalance recalculation without wheel run on input
parameters change
Manatec Model No : WB-VL-65Phone: Ph: +91 413 2248926 /Fax : +91 413 2243222E-mail : [email protected] / [email protected]
Clim SprayCLIM Spray is eff ect ive in cleaning the air inside the vehicle. Th e solution purifi es the air, dest roys bad smells on the covered surfaces (carpet, seats and roof lining etc), and perfumes discretely inside your vehicle. Simple, the complete treatment takes less than 15 mn due to its automatic diff usion mode. Phone : 91 4 422 505 000
Bike Washing System SWITCH over to modern, st ate-of-the-art washing of two-three wheelers. Junk the primitive tap-pump-pipe-nozzle ensemble. Bike Washers’ long arm nozzles and 100 bar water jet dislodge dirt from every crevice.
Metafab IndiaPhone: + 0129 - 4026897 / 4027897, +0129 - 2239211 / 2234410 / 2230276E-mail: [email protected], [email protected] Website: www.metafabindia.com
DECEMBER 2011 AFTERMARKET 59
PRODUCTS
Electric Fuel PumpsTHE funct ion of the fuel pump is to propel the fuel tank to the engine. Valeo complet-ed its mechanical fuel pumps range by launching more than 230 new elect ric fuel pumps part numbers. Th e new Valeo fuel pumps off er includes all fuel pump technologies on the market.
Th e elect rical fuel pumps completely immerged in the tank off er many advantages:
- Better lubrifi cation - Less noise and vibrations- Improved refrigerationTh e number of passenger vehicles equipped with elect rical
fuel pumps has been rising exponentially since the introduc-tion of this technology and represents the majority of vehicles on the car park today. Th is new market represents a sales opportunity for independent professional repairers.
ValeoPhone : 91 4 422 505 000
Tyre ChangersTHE side swinging mounting arm enables the user to inst all it near the wall occupying very less space. Th e specially designed bead breaker handles rims very gently and safely.
• Suitable for Car and
LCV Tyres• Side swing mounting
arm• Pneumatic Twin
Cylinders for fi rm clamping
• Four jaw self centering chuck• Alloy wheel plast ic protect or• Bead breaking by pneumatically operated cylinders• Clockwise and Anticlockwise rotation of turn table using
Elect ric Motor• Built-in FRL (Filter, Regulator and Lubricator)• Motorcycle adopter (Optional)
ManatecModel No: TC-XL-40Phone: +91 413 2248926 Fax : +91 413 2243222E-mail : [email protected] / [email protected]
Car Covers THE company is engaged in manufact uring and exporting of car covers. Th eir car covers are manu-fact ured with very high quality fabric which is highly durable and longer life. Th ey off er premium quality silver color car body covers for all variants and models of the cars. Th ese car covers protect
your car from the sun, rains, ultraviolet rays, dust and scratches.
Choudhry EnterprisesPhone : +(91)-(11)-23910142/ 65159723 Mo : +(91)-9717032558/ 9313208022Email: [email protected] /[email protected]
Seat CoversTHE Platina 900 series seat covers are sol-vent free, which makes them eco friendly. Th e topcoat is made of water-based lacquer to make it skin friend-lier and coated with lacquer to improve the life of the seat cover.
Th e new series of seat cover has properties like anti-fungus, anti-bact erial, UV
resist ant, fi re retardant and perforated providing free airfl ow. Th e PVC based vinyl leather provides a dry feel and non-woven fabric helps to get the cool feel for the backing. It is all side st retchable like leather which help to expand the seat cover and give good comfort. Th e thickness of the material used for “Platina 900” series seat covers is 1.8 mm compared to normal PVC, which is 0.9 mm and the seat cover comes with st rings to provide a perfect fi t.
Choudhry EnterprisesPhone : +(91)-(11)-23910142/ 65159723 Mo : +(91)-9717032558/ 9313208022Email: [email protected] / [email protected]
60 AFTERMARKET DECEMBER 2011
PRODUCTS
Euro III / IV Compliant Heat ExchangerLeading the way in Euro III/Euro IV migration
ALKRAFT’S high performance radiators and intercoolers are among the fi rst in India that comply with Euro III/Euro IV (BS III/BS IV) emission norms. Th eir product s feature unique core designs that are made using super-long-life alloys for enhanced corrosion resist ance and st ruct ural durability. Th e special designs enhance heat transfer performance, thus enabling cleaner combust ion, lower carbon emissions and better overall performance. Th e wide range of core confi gurations cover all automotive applications, and enable them to successfully migrate to Euro III and IV st andards without eff ect ing major chang-es to design parameters.
Alkraft Thermotechnologies Phone : +91-44-26258750 / 90Fax : +91-44-26258770Email: [email protected]
Charge Air CoolersALKRAFT has designed and manufac-tured high performance intercoolers ever since it produced the fi rst Aluminium intercooler in India. Th eir capabilities cut across diff erent technologies and design variations like extruded tubes, tube with inner fi ns, plate and bar const ruct ion, drawn cup charge air coolers, and spe-cially engineered high temperature plast ic header tanks. Th e higher heat dissipation capacity and better performance to weight
ratio of our intercoolers enable better fuel effi ciency. Th ey are also among the fi rst in India to comply with Euro III and Euro IV emis-sion st andards. Th e intercoolers cover a range of diesel applications including:• Passenger cars • Utility vehicles• Light, medium & heavy commercial vehicles• Off -highway vehicles including road machinery and earth moving equipment• Compressors & power generation equipment
Alkraft ThermotechnologiesPhone : +91-44-26258750 / 90Fax : +91-44-26258770Email: [email protected]
DECEMBER 2011 AFTERMARKET 61
PRODUCTS
Electrohydraulic Servovalves PARKER Aerospace designs and manufact ures the highly reliable Jet-Pipe-based elect ro-hydraulic servovalves (EHSVs). Th ese EHSVs are used to con-trol position, velocity, and force in a variety of hydraulic, fuel syst ems, and engine con-trol applications for aerospace and derivative markets. Features include: reliability (single inlet fi rst st age); contamination-resist ant; low sensitivity to vibration & shock; st ability; null bias st ability; low mainte-nance; servo-controlled second st age; wide dynamic range; dry torque motor; and reduced life cycle cost . Applications are in commercial transports, military fi ghters & transports, helicopters, unmanned air vehicles, launch vehicles, missiles, main gear & nose wheel st eering syst ems, auto brake mod-ules, engine control, etc.
Parker Hanni� n India, Navi Mumbai, MaharashtraTel: 022-6513 7081, Fax: 022-2768 6841Email: [email protected], Website: www.parker.com
Check ValvesFLUDEN check valves off ered by Fluid Power Engineers are used in hydraulic syst ems to check the fl ow in one direct ion and allow fl ow in the oppo-site direct ion. Th ese valves are const ruct -
ed in MS body and poppet, spring and spring retainers. Th ey are available in sizes of 1/4” BSP, 1/2” BSP, 3/4” BSP, 1” BSP and 1½” BSP at diff erent creating pressure range of 5, 1.5, 3 and 5 bars and test ed at 315 bars.
Fluid Power Engineers, Ahmedabad, GujaratTel: 079-2289 1665, Fax: 079-2289 1666Mob: 09426068483Email: info@fl uden.com, Website: www.fl uden.comAn ISO 9001:2000 Certified Company
Pressure Reducing ValvesFLOCON Syst ems manufact ures and off ers pressure reducing valves that are automatic control valves designed to reduce a higher inlet pressure to a lower const ant outlet pressure regardless of fl uct uating fl ow rates and/or varying inlet pressure. Th ese valves are pilot controlled, hydraulically operated, diaphragm act u-ated globe valves in either the oblique (Y) or angle pattern design. Valve diff erential
pressure powers the diaphragm act uator open or closed.
Flocon Systems, Dist Thiruvallur, Tamil NaduTel: 044-2792 2819/2990, Fax: 044-2792 2390Email: fl [email protected], Website: www.fl oconsyst emsindia.com
Mini PumpsROTOMAC Indust ries manu-fact ures and off ers domest ic mul-ti-purpose mini pumps. Th e dou-bled-walled st ator design eliminates need for universal jointsor coupling rods. Th ese pumps are available in cost -eff ect ive, portable-closed coupled (motorised) design or bare shaftdesign for fl exibility of use of drives, for eg, mechanicalspeed variators, diesel engines, etc. Th ey can be adopted for solar power motors. Th e mini pumps are suitable for metering, dosing with 90 to 95 per cent accuracy. Th ey are ideal pumps for the European market, especially UK. Domest ic applications include cellar drainage, septic tank cesspit emptying, garden sprinklersyst ems irrigation, water supply sampling from wells, st reams and rivers. Indust rial applications are general-purpose pumps for diesel, lubricating oil, water-based inks, vegetable oils, plating solutions, other non-aggressive chemicals, non corrosive liquids with medium viscosity, for eg, fuel oil, thin molasses, fl uids with suspended solids, for eg, dirty water from cesspools, domest ic water transfer, hot water circulation.
Rotomac Industries (P, Kanpur, Uttar PradeshTel: 0512-269 1704, Fax: 0512-269 1706Email: [email protected]: www.rotomacpump.com
Pneumatic Tyre SpreaderTHE air powered tyre spreader (ped-est al base) is designed for clamping, spreading and lifting car tyres during repair. One can also do tyre inspect ion cutting, buffi ng with dust extract ion, insert tubes and patching. Metafab Engineers (India)Model No: car tyre spreader Mt-850-pts-I
Phone: + 0129 - 4026897 / 4027897, +0129 - 2239211 / 2234410 / 2230276E-mail: [email protected], [email protected] Website: www.metafabindia.com
62 AFTERMARKET DECEMBER 2011
PRODUCTS
All-Purpose Foam CleanersPidilite off ers Cyclo MaxClean all-purpose foam cleaners that contain specialty deter-gents, which clean and rest ore colour and appearance. With deep-cleaning foaming act ion these foam cleaners work as great as spot carpet cleaners. Boost ed with orange oil the foam cleaners are natural cleaners and have a pleasant citrus fragrance. Th ey remove bad odours from the seat, covers, and carpets. Cyclo MaxClean foam cleaners can be used on plast ic, vinyl, carpet and fabric. It is avail-able in packaged form of 624 gms.
Pidilite Industries, Mumbai 400 059Tel: 022-3308 7000, Fax: 022-2835 7700Email: [email protected], Website: www.pidilite.com
Automotive BatteriesRR Indust ries off ers a wide range of automotive batteries (DIN 44) that are manufact ured from high grade quality raw materials. Th ese batteries can be cust omised as per cust omers’ specifi cations. Th e automotive batteries are widely known for their durability and quality. Th ese can be availed at indust rial leading price (claims the company).
R R Industries, Bengaluru 560 021.Tel: 080-23126827, Mob: 09448437845Email: [email protected], Website: www.rrmicrobatteries.com, Certifi cation: An ISI 9001:2008 Certifi ed Company
Stacker Parking SystemsKamex Mechanised Parking off ers st acker parking syst ems for two cars. Th e parking syst ems are equipped with a single platform, allowing long-term parking on the upper level and short-term parking on the lower one. For use of the upper platform vehicle from the lower parking space is removed. Th ese syst ems are suitable for medium & large buildings and these can also be inst alled into exist ing buildings. A lengthwise or breath wise arrangement may be select ed according to the condition of the site. Hydraulic cylinders are used for lifting the pallet. Pallets are made using 2 mm thick galvanised st eel to prevent defl ect ion. Th e pallets are provided with st opper to prevent move-ment of cars during pallet movement. Over-travel limit switches are fi tted to prevent over-travel of the pallets. Emergency st op switch is inst alled inside the operating level. If the switch is act ivated in emergency, the power is cutoff the main motor and all operations are st opped.
Kamex Mechanised Parking, Jaipur 302 018Tel: 0141-6511501, Fax: 0141-2707856Email: contact @kamexparking.comcontact @kamexparking.com, Website: www.kamexparking.com
Industrial & Automobile KeysJagat Engineers off ers indust rial and automobile keys of all types, like square, fl at and par-allel, woodruff , Gib-head, etc, as per IS:2048, 2292, 2293, 2294 and 2710, in DIN06881 to 6888, ASTM and BS-46, part I. Sizes range from 3 x 3 mm sq to 50 x 28 mm fl at parallel keys with all sides ground to required tolerance and well chamfered with all over for ease of
assemble for 10 mm to 300 mm shaft key ways. Th e keys are used for transmitting loads in elect ric motors, pumps, couplings, pulleys, valves, textile machineries, agricultural machineries, chemical plants, machine tools of all types and other rotating parts. Woodruff keys are used in compressors, two-wheelers, three-wheelers, cars, trucks, tract ors and gearboxes in all types of machineries. Special keys are made from st ainless st eel, EN-24, EN-19 materials for shock loading transmissions apart from st andard EN-8/9 keys with high tensile test ed st eel material. Maintenance purpose kits are also available for quick repairs and breakdown jobs.
Jagat Engineers, Vadodara 390 010Tel: 0265-264 2347, Fax: 0265-264 3347
On page 15 of the Oct ober 2011 issue, the name of the company Mahle has been incorrect ly mentioned. Th e error is deeply regretted.
Corrigendum
DECEMBER 2011 AFTERMARKET 63
ADVERTISERS’ LIST
Pg No. Advertiser ...........................................Tel .................................E-mail ............................................Website
53 .......ADEA Awards ........................................+91-22-30034650 [email protected] ...... www.adea.in
19 .......ARO Equipments Pvt Ltd ......................+91-124-4585400 [email protected] ......... www.aroequipments.com
11 .......Bosch Limited ......................................+91-80-22999228 .................................................................. www.boschindia.com
6 .........Confederation Of Indian Industry .......+91-124-4013871 ........... [email protected] ..................... www.autoexpo.in
27 .......Eastman Cast & Forge Ltd ....................+91-161-2511440 [email protected]
4,8 ......Engineering Expo .................................+91-9819552270 [email protected] .............. www.engg-expo.com
BC ...... Federal Mogul ......................................+91-124-4784530 [email protected] ..... www.federalmogul.com
49,51 .. Federation Of Automobile Dealers Associations ..+91-11-23320095 [email protected] ......................... www.fadaweb.com
45 .......KYB Asia Co Ltd ....................................+91-9871687888 [email protected] ........................... www.kyba.co.th
BIC ..... Lubrizol Advanced Materials India Pvt Ltd ..+91-22-66027800 [email protected] .............. www.lubrizol.com/engineeredpolymers
3 .........Madhus Garage Eqpts ..........................+91-80-26660656 [email protected] .......... www.madhusindia.com
21 ....... Shriram Pistons & Rings Ltd ................+91-11-23315941 [email protected]
FIC ...... Sushma Industries ...............................+91-80-28397463 [email protected] www.sushmaindustries.com
� Our consistent advertisers
DATA
64 AFTERMARKET DECEMBER 2011
S
ept.
2011
12
0925
7 21
8724
7 13
6251
54
6959
20
8172
14
7299
59
784
1659
0 14
793
1094
099
7501
09
3653
029
5633
1 10
0799
20
S
ept.
2010
13
6133
4 22
5510
4 13
2018
51
5008
21
9578
15
8503
66
092
2589
8 15
523
1037
464
6642
76
3570
885
5749
4 10
0791
77
%
Cha
nge
Sep
t. 11
ove
r
(-)1
1%
(-)3
%
3%
6%
(-)5
%
(-)7
%
(-)1
0%
(-)3
6%
(-)5
%
5%
13%
2%
(-
)2%
0%
Sep
t. 10
(Pro
dn.)
A
vg. M
thly
. Prd
n.
(6 M
onth
s) in
F.Y
. 12
9987
1 22
3641
8 12
4573
56
6686
23
6562
16
2156
76
602
2180
2 16
270
1125
055
7049
38
3821
862
5593
3 10
4487
2820
11-1
2 A
pr.-S
ept.
A
vg. M
thly
. Prd
n.
(6 M
onth
s) in
F.Y
. 12
6802
4 20
9104
4 12
7185
47
3293
23
1379
15
2971
77
256
2160
1 15
105
9602
89
5665
32
3498
551
5000
7 95
3323
720
10-1
1 A
pr.-S
ept.
%
Cha
nge
Apr
.-Sep
t. (1
1-12
) 3%
7%
(-
)2%
20
%
2%
6%
(-)1
%
1%
8%
17%
24
%
9%
12%
10
%O
ver A
pr.-S
ept.
(10-
11)
Cat
egor
y Tr
uck/
Bus
P
asse
nger
Je
ep
L.C
.V.
Tr
acto
r
Adv
O
tr
Sco
oter
S
coot
er
M
otor
Cyc
le
In
dust
rial
To
tal
C
ar
Fron
t R
ear
Trai
ler
(2
Whe
eler
/Mop
ed)
(3 W
heel
er)
CA
TE
GO
RY
WIS
E T
YR
E P
RO
DU
CT
ION
SE
PT
EM
BE
R 2
01
1 A
ND
CO
MP
AR
ISO
NS
DATA
DECEMBER 2011 AFTERMARKET 65
Sep
t. 20
11
2025
82
1157
35
1096
1 16
9961
12
34
3774
59
1 14
557
2093
67
400
6585
3 11
938
1080
4 67
7483
Sep
t. 20
10
1708
13
1240
72
3070
10
5618
84
9 49
52
0 42
09
4275
42
278
6946
7 78
71
2383
3 56
1307
%
Cha
nge
Sep
t. 20
11 o
ver
19
%
(-)7
%
257%
61
%
45%
(-
)24%
10
0%
246%
(-
)51%
59
%
(-)5
%
52%
(-
)55%
21
%S
ept.
2010
(Exp
orts
)
A
vg. M
thly
. Exp
ort
1846
43
1219
46
6878
13
9486
12
66
2349
15
0 18
313
6968
60
039
6984
0 10
356
8798
63
1032
(6
Mon
ths)
in F
.Y.
2011
-12
Apr
.-Sep
t.
A
vg. M
thly
. Prd
n.
1459
16
8691
5 73
10
1078
26
687
2891
14
2 94
14
3100
43
552
6177
0 79
34
9151
48
6608
(6 M
onth
s) in
F.Y
.
2010
-11
Apr
.-Sep
t.
%
Cha
nge
Apr
.-Sep
t. (1
1-12
) 27
%
40%
(-
)6%
29
%
84%
(-
)19%
6%
95
%
125%
38
%
13%
31
%
(-)4
%
30%
O
ver A
pr.-S
ept.
(10-
11)
CA
TE
GO
RY
WIS
E T
YR
E E
XP
OR
TS
SE
PT
EM
BE
R 2
01
1 A
ND
CO
MP
AR
ISO
NS
Cat
egor
y Tr
uck/
Bus
P
asse
nger
Je
ep
LCV
Trac
tor
O
tr
Sco
oter
S
coot
er
Mot
or C
ycle
Im
plem
ent
Indu
stri
al
Tota
l
Car
Fr
ont
Rea
r Tr
aile
r
(2 W
heel
er
(3 W
heel
er)
/Mop
ed)
66 AFTERMARKET DECEMBER 2011
PRODUCT INDEX
A/C service equipment .......................................................... 3
ADEA - Automotive Dealership Excellence Awards ............... 53
Aftermarket components ..................................................... 27
Air-conditioning equipment ................................................. 19
Alternatives........................................................................... 11
Auto Expo-2012 .................................................................... 6
Batteries ............................................................................... 11
Bottle cap torque testing systems......................................... FIC
Brake pads ............................................................................ 11
Brake testing equipment ...................................................... 3
Clutch plates & cover assemblies .......................................... 11
Collision repair systems ........................................................ 3
Crimp testers ........................................................................ FIC
EngineeringExpo exhibitions ................................................ 4
Exhibitions ............................................................................ 4
Filters .................................................................................... 11
Force & pressure calibration & testing equipment ............... FIC
Force gauges ......................................................................... FIC
Gas analysers ........................................................................ 3
Gasoline systems .................................................................. 11
Gear pumps .......................................................................... 11
Horns .................................................................................... 11
Industrial products ............................................................... 27
Lifting equipment ................................................................. 19
Lighting equipment .............................................................. 11
Lubricants ............................................................................. 11
Motor testing systems ........................................................... FIC
Pistons & pistons rings ......................................................... 21
Pistons .................................................................................. BC
Pressure sensors and indicators ........................................... FIC
Relays ................................................................................... 11
Socket observers ................................................................... 45
Spark plugs ........................................................................... 11
Spot welding equipment ...................................................... 3
Spring testers ........................................................................ FIC
Starter motors ...................................................................... 11
Tensile testing machines....................................................... FIC
Thermoplastic polyurethanes ............................................... BIC
Torque gauges ...................................................................... FIC
Torque tool testers................................................................ FIC
Torque .................................................................................. FIC
Tyre care equipment ............................................................ 19
Tyre changers ....................................................................... 3
Tyre infl ation equipment ...................................................... 3
Wheel aligners ...................................................................... 3
Wheel balancers ................................................................... 3
Wiper blades ......................................................................... 11
Product ................................................................................Pg No. Product ................................................................................Pg No.
FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover
From boats to planes to passenger
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In the transportation industry, Estane®
Thermoplastic Polyurethanes are widely used
for their excellent properties such as flexibility
over a wide temperature range, optical clarity,
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superior abrasion resistance and extreme durability.
Applications
ABS Sensor Cable/Grommet
Shift Lever Skin
Fuel Bowl
Paint Protection Film
Dust Cover/Driveshaft Boot
Co-extruded Interior Parts
Sealing Material
Rail Pad
Estane® TPUs provide:
Abrasion Resistance
Elongation
Superior Tear Strength
Excellent Tensile Strength
Ease of Processing
© The Lubrizol Corporation 2011, all rights reserved.® Estane is a registered trademark of The Lubrizol Corporation.
Purchase it locally from our newly opened warehouse in
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For more information email us at
[email protected] or visit our web site.
www.lubrizol.com/engineeredpolymers