b2b report phase 1 - group 4

8/9/2019 B2B Report Phase 1 - Group 4

1/21

B2B Marketing PlanPhase 1

IndustryAutomobile Ancillary

CompanyAmtek Auto Limited

Submitted toProf. M.Sivagnanasundaram

Submitted By

Group 4

Dhawal Rathore

Rishabh Kant Singh

ishwarya Singh

Shiladityo Bhatta!harya

Gautham Kumar

Swati "haudhary

Shruti #ain


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Executive Summary

$he automobile industry is one of the primary drivers of e!onomy % both in terms of

manufa!turing and servi!e. &t's an integral part of !ontributor to GDP for any nation.

$oday &ndia is not only largest importer of (M) parts of automobile industry but is

slowly turning into a giant of manufa!turing* due to up!oming Make in India"ampaign+

with numerous auto giants turning their attention to redu!e !ost of manufa!turing and set,

up a base to generate -obs here in &ndia

$hus this interesting future endeavor has got our teams attention and helped us to !hoose

uto n!illary Parts /Bra0es1 with our !ompany as % M$)K* whi!h is !urrently the

leading auto an!illary parts ma0er in terms of bra0es in the b2b mar0et.

3ith the above !hoi!e of the !ompany we wish to dis!over the different aspe!ts of the

industry* its trends and mar0et indi!ators as our report progresses. 3e understand that this

is a dependent industry when it !omes to study the nature of demand+ i.e. as automobile

industry grows the auto an!illary industry too grows. &t is noteworthy that although

demands from domesti! mar0ets have fallen there is still a rise seen in the performan!e of

this support industry. $his is a!!ounted be!ause of the fa!tor of high eports of parts*

!reated here in &ndia* whi!h is demanded outside in the world mar0ets at different level.

3e than0 Prof. Siva for his immense guidan!e etended to us at every step of this pro-e!t.

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Table of Contents

Sr no. Content Page

1. Current Product situation 3

2. Company Situation 12

3. Current Maret Situation 1

!. Customer Situation 1!

". Macro Environment Situation 1"

#.Current Product Situation

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$ist of products

%ly &'eel (ing )ears*

51 Starter (ing )ear* starter ring gear* sometimes !alled a starter ring or ring gear* is a

medium !arbon steel ring with teeth that is fitted on the periphery of a fle plate orflywheel of an internal !ombustion engine* mostly for automotive or air!raft appli!ations.

$he primary fun!tion of the starter ring is to transfer tor6ue from the starter motor pinion to

the flywheel or fle plate to rotate the engine to begin the !y!le.

21 %lex Plate* fle plate /or fle plate1 is a metal dis0

that !onne!ts the output from an engine to the

input of a tor6ue !onverter in a !ar e6uipped with an automati! transmission. &t ta0es the

pla!e of the flywheel found in a !onventional manual transmission setup. $he name refers

to the ability of the dis0 to fle a!ross its main ais , bending side to side , to ta0e up

motion in the tor6ue !onverter as rotational speeds !hange. 7le plates are generally mu!hthinner and lighter than flywheels due to the smooth !oupling a!tion of the tor6ue !onverter

and the elimination of the !lut!h surfa!e. 8i0e flywheels* fle plates normally handle

!oupling to the starter motor* via teeth !ut along the outer edge of the plate. $hese teeth

give the fle plate a gear,li0e appearan!e* in spite of this being a se!ondary fun!tion.

Mac'ining*

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51 Steering Knu!0les9 &n automotive suspension* a steering 0nu!0le is that part whi!h

!ontains the wheel hub or spindle* and atta!hes to the suspension !omponents. &t is

variously !alled a steering 0nu!0le* spindle* upright or hub* as well. $he wheel and tire

assembly atta!h to the hub or spindle of the 0nu!0le where the tire:wheel rotates while

being held in a stable plane of motion by the 0nu!0le:suspension assembly.

21 Connecting rod* &n a re!ipro!ating

piston engine* the !onne!ting rod or !onrod !onne!ts the piston to the !ran0 or

!ran0shaft. $ogether with the !ran0* they form a simple me!hanism that !onverts

re!ipro!ating motion into rotating motion. s a !onne!ting rod is rigid* it may transmit

either a push or a pull and so the rod may rotate the !ran0 through both halves of a

revolution* i.e. piston pushing and piston pulling. )arlier me!hanisms* su!h as !hains*!ould only pull. &n a few two,stro0e engines* the !onne!ting rod is only re6uired to push.

;1 %ront #xle

+eams* beam

ale* rigid ale

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or solid ale is a dependent suspension design* in whi!h a set of wheels is !onne!ted

laterally by a single beam or shaft. Beam ales were on!e !ommonly used at the rear

wheels of a vehi!le* but histori!ally they have also been used as front ales in rear,wheel,

drive vehi!les. &n most automobiles* beam ales have been repla!ed by front and rear

independent suspensions.

%orging*

1, Pistons* piston is a !omponent of re!ipro!ating engines* re!ipro!ating pumps* gas

!ompressors and pneumati! !ylinders* among other similar me!hanisms. &t is the moving

!omponent that is !ontained by a !ylinder and is made gas,tight by piston rings. &n an

engine* its purpose is to transfer for!e from epanding gas in the !ylinder to the

!ran0shaft via a piston rod and:or !onne!ting rod. &n a pump* the fun!tion is reversed and

for!e is transferred from the !ran0shaft to the piston for the purpose of !ompressing ore-e!ting the fluid in the !ylinder. &n some engines* the piston also a!ts as a valve by

!overing and un!overing ports in the !ylinder wall.

Casting #luminum -P/C

0 )/C,

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51 Timing c'ain covers* $he $iming "over is the aluminium part on the front of the

engine that !overs the $iming "hain. &t also has a timing mar0 on the !over and houses

the !ran0shaft pulley seal.

Casting ron -P/C 0 )/C,

51 +rae Carriers and Callipers* Bra0e !alipers are essential to your !ar


8/21

perform a !onversion between re!ipro!ating motion and rotational motion. &n a

re!ipro!ating engine* it translates re!ipro!ating motion of the piston into rotational

motion+ whereas in a re!ipro!ating !ompressor* it !onverts the rotational motion into

re!ipro!ating motion. &n order to do the !onversion between two motions* the !ran0shaft

has >!ran0 throws> or >!ran0pins>* additional bearing surfa!es whose ais is offset from

that of the !ran0* to whi!h the >big ends> of the !onne!ting rods from ea!h !ylinder atta!h

;1 +ell ousing*>Bellhousing> is a !ollo6uial:slang term for the portion of the transmission

that !overs the flywheel and the !lut!h or tor6ue !onverter of the transmission on vehi!les

powered by internal !ombustion engines. $his housing is bolted to the engine blo!0 and

derives its name from the bell,li0e shape that its internal !omponents ne!essitate. $he

starter motor is usually mounted here* and engages with a ring gear on the flywheel. (n

the opposite end to the engine is usually bolted to the gearbo. ?owever* on some

transmissions* the bellhousing is a nonremovable part of the transmission !ase. $his isparti!ularly true with front wheel drive transmissions* whi!h are mu!h shorter than

!onventional rear wheel drive transmissions

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Current #nnual sales of t'e #uto #ncillaries +raes*

$he !urrent annual sales of uto n!illaries,Bra0es is @[email protected]; !rs out of the total sales mte0

uto holds the most whi!h is ;C4.E5 !rs whi!h !learly indi!ate that that M$)K is the mar0et

leader

3"$%!1

21#%#2Amtek Auto

&est o' the Industry

Maret s'are of t'e #uto #ncillaries+raes*

7rom the graph we !an !learly see that mte0 uto is mar0et leader whi!h holds nearly E;F of

the total annual sales.

!3(

3"(

Amtek Auto

&est o' the Industry

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#ccess t'e opportunity*

&ndia is the se!ond 8argest Produ!er of Motor!y!les in the world /@.2 Mln1 after !hina has a

produ!tion volume of 52 Mln

&ndian uto &ndustry is the

8argest $hree 3heeler Mar0et in the 3orld

Se!ond largest $wo 3heeler Mar0et in the 3orld

7ourth largest Passenger ehi!le Mar0et in sia

7ourth largest $ra!tor Mar0et in the 3orld

7ifth largest "ommer!ial ehi!le Mar0et in the 3orld

(ange of e'icles made in ndia include

8ight Passenger ehi!les in!luding Passenger "ars* MH


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7rom the above graph we !an !learly see that there are upward trends in the uto "omponent

&ndustry

Suspension Bra0ing Parts holds a signifi!ant share of the total auto !omponent industry

#uto Component ndustry

$he Rs 5E billion &ndian auto !omponents industry has been witnessing a moderation in its

revenue growth sin!e the beginning of this fis!al year. (ut of the global turnover of &ndian auto

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!omponents industry* around EF is derived from sales to domesti! ()M's* around 2@F !omes

from sales to domesti! repla!ements

%rom t'e above grap's &e can see t'at t'ere is a significant opportunities for t'e 4EM5s in

ndia.

Can 6e Compete7

Jes we !an !ompete be!ause there are only few !ompanies whi!h are offering these many

varieties of produ!ts. s the needs of the !ustomers 0eeps !hanging and !atering to these needs*

"ompanies needs to upgrade its manufa!turing !apabilities and yet maintaining highest standard

6uality. $he other ma-or !ompetitors for it !an be +os'8 Mot'erson Sumi8 )aberial ndia8

9MT #uto etc..

Can &e &in7

?ere the mte0 &ndia ltd has already well established relationships with big utomobile

manufa!turing !ompanies in 2:; wheelers li0e onda8 Su:ui8 TS8 ;ama'a and ero. &n

Passenger vehi!les li0e #aguar* ?undai* 8and Rover* sho0a 8ey land* Lissan* $$. &n heavy

!ommer!ial vehi!les li0e D&M8)R* 7or!e* olvo. Key strength of mte0 &ndia is that it

!hanges it manufa!turing !apabilities and yet maintaining highest standard 6uality as per the

needs of the !lients. "ompany's $e!hnologi!al epertise and eperien!e has given them an edge

over the others. $he staff is motivated and trained !onstantly to mat!h the industries standards.

mte0 philosophy on be!oming the !omponent partner of !hoi!e for leading utomobile

Manufa!turers ssisted by a stri!t 6uality regime* intera!tion with !ustomers and an eye onemerging needs* Pla!ed strong emphasis on 6uality* servi!e* reliability and ethi!s. "ore values of

the !ompany are "ommitment to e!ellen!e* (penness* 7airness and $rust* "ustomer fo!us*

$eam spirit.

$here are different types of pa!0aging used by the !ompany li0e

51 "omposite Pa!0s9 &t !onsists of multiple layers* predominantly made from heavy duty

!orrugated board to prote!t fragile and vulnerable goods.21 )asy Glue Pa!0ing 9$he glue allows the relevant -oint to be pressed together and stu!0 in

a pla!e* !reating easier handling on pa!0ing line and eliminating the need for any other

material;1 ?eavy,duty !orrugated pa!0ing9 &t is made from double or triple wall board. &t is

designed to etreme levels of prote!tion in transit.41 Pallet Pa!0s9 &t is made from heavy weight !orrugated !ardboard* it !onsists of a base*

sleeve and a lid that sits on a wooden or !orrugated pallet designed to with stand physi!al

re6uirements of the supply !hain whether rail or road.

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+.Company Situation

mte0 uto is head6uartered in Lew Delhi and is one of the largest integrated automotive!omponent manufa!turers in &ndia with a strong global presen!e. $he "ompany has world !lass

fa!ilities in &ndia* )urope and Lorth meri!a. mte0 uto has signifi!ant epertise in forging*

grey and du!tile iron !asting* gravity and high,pressure aluminum die !asting and ma!hining and

sub,assembly. $he "ompany also manufa!tures !omponents for non,auto se!tors su!h as the

railways* spe!ialty vehi!les* aerospa!e* agri!ultural and heavy earth moving e6uipment. $he

mte0 Group is !omprised of the listed !orporate entities mte0 uto* mte0 &ndia*

hmednagar 7orgings* #M$ uto and other subsidiaries. 3ith the infrastru!ture and te!hnology

platform developed over 2@ years* the Group is well positioned in the &ndian uto and Lon,uto

!omponent mar0ets.

ision- $o be!ome a world !lass engineering !ompany in the utomotive and Lon utomotive

se!tor. $his is to be a!hieved by !apitaliing on our superior te!hnology base for the benefit of

our !ustomers* suppliers and sta0eholders.N

mte0 uto 8td.* in!orporated in the year 5AA* is a Mid "ap !ompany /having a mar0et !ap of

Rs.;*C.5; "r.1 operating in uto n!illaries se!tor. mte0 uto 8td. 0ey Produ!ts:Revenue

Segments in!lude uto "omponents whi!h !ontributed Rs.;C4.E5 "r to Sales alue /;.CCF of

$otal Sales1* (ther Servi!es whi!h !ontributed Rs.24E.C "r to Sales alue /E.22F of $otal

Sales1* for the year ending ;,Sep,254.$he ob-e!tive of mte0 uto &nvestor Relations is to

ensure !ontinuous and open !ommuni!ation with all finan!ial mar0et parti!ipants.

7or the 6uarter ended ;,Sep,254* the !ompany has reported a standalone sales of Rs.CE.;;

"r.* down ,.2@F from last 6uarter Sales of Rs.CA.A "r. and up C;.5F from last year same

6uarter Sales of Rs.@E4.;2 "r. "ompany has reported net profit after ta of Rs. C4.;C "r. in latest

6uarter. s on ;5,De!,254* the !ompany has a total of 22*;5C*2A shares outstanding.

$he !ompany's management in!ludes Mr.D S Mali0* Mr.Gautam Malhotra* Mr.#ohn )rnest

7lintham* Mr.Ra- Larain Bhardwa-* Mr.Ra-eev Kumar $ha0ur* Mr.Ra-eev Ra- Kumar* Mr.Ra-eev

Ra- Kumar* Mr.San-ay "hhabra* Mr.San-iv Bhasin* Mr.inod Hppal* Mr.rvind Dham* Mr.B

8ugani* Mr.B enugopal.

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C. Current Maret Situations

&ndia is emerging as a global hub for auto !omponent sour!ing and is set to brea0 into the league

of the top five vehi!le produ!ing nations worldwide. $he !ountry has also emerged as one of thepreferred most destinations for sour!ing of auto !omponents. Ma-or global original e6uipment

manufa!turers /()Ms1 have already made plans to ma0e &ndia a !omponent sour!ing hub for

their global operations.

$he &ndian auto !omponent industry revenues have risen from HSO 2E.@ billion in 7JA to HSO

4.E billion in 7J5; % a "GR of A.F. s per the estimates of utomotive "omponent

Manufa!turers sso!iation of &ndia /"M1* there is an epe!ted turnover of HSO EE billion by

7J 5@,5E with the li0elihood to tou!h HSO 55@ billion by 7J 2,25 depending on favorable

!onditions.

$he automotive industry !ontributes to a great etent to the growth of the &ndian )!onomy. $he

industry itself is well developed as it a!ts as a support giving support to the e!onomi! growth.

$he &ndian auto !omponent se!tor !overs a wide range of industries.

$he rapidly globaliing world is opening new ventures for the transportation industry* !reating

the need for more effi!ient* safe and reliable modes of transportation* whi!h is subse6uently

adding to the auto !omponent industry


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efforts to !onsolidate vendors /21 higher lo!aliation /;1 faster eport growth /41 rising !ontent

per vehi!le and /@1 faster repla!ement mar0et growth.

FY 2015 is expected to turn out better as the industry received a much needed respite in excise

duty cuts (between 4!"# in the Interim $ud%et& which were 'ater continued in the nion $ud%et

unti' )1 *ec 2014+

)ports of auto !omponents to pi!0 up &ndian !ompanies have a huge !ost advantage over

foreign !omponents+ on labor !osts with wage !osts in &ndia being very low as !ompared to of

those in )urope and the HS. $he primary reason for this is the large availability of highly s0illed

labor in &ndia* whi!h !ombined with improving 6uality standards* ma0es &ndian auto !omponents

an attra!tive value proposition for foreign ()MS. $he rupee


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252,5;/1

,.;F .2F ,C.F 5E.EF E.F

25;,54/1

AC.AF 4A.2F 5;.F 5;.5F 4.5F

254,5@/71

@@.F E.F AC.5F 5;.@F @.F

Key Details for uto "omponent &ndustry9 /Sour!e9 "apitaline1):)B&$D 54.AC

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19/21

/. Trends in #uto#ncillary ndustry

$he automobile se!tor is primarily segmented into four ma-or !ategories. $hey rule the entire

se!tor and predominantly influen!e the e!onomy of the !ountry. Several industries survive on

profits of this single industry* where their profits are inlined with automobile se!tor. $he se!torsare9,

51 $wo,3heeler21 7our,3heeler;1 $hree,3heeler41 "ommer!ial ehi!le

utomobile se!tor is a 0ey driver that boosts the e!onomi! growth of the !ountry. fter allowing5 per!ent 7D&* &ndian government paved a path for global brands to !ome in &ndia andestablish a robust manufa!turing hub to support their global supply networ0. "ompanies li0e

K$M and ?arley Davidson have !ome to our !ountry to do the same -ob.

$he trend is dynami! in auto an!illary mar0et* it 0eeps on !hanging due to fre6uently !hangingdemand in the mar0et. $o have an overview of moving trends* let's eplore9,

$here are around E4 !ompanies of whi!h E large !ompanies a!!ount for CCF of total

produ!tion

Ma-or players fo!us on high valued pre!ision engineering produ!ts* small players fo!us on

lower value,added produ!ts

()M's mainly retail their produ!ts through !ompany owned fran!hisees or sales units

$he retail mar0et has siable presen!e of small players in!luding garages:repair shops

)ngine parts* transmission and steering produ!ts together !ontribute up to @F of total

produ!tion

Several &ndian manufa!turers are ta0ing an inorgani! route to widen their te!hnology and

!lient base by off,shoring designing and manufa!turing of high,end !omponents and

retaining labour intensive operations in &ndia

$he buoyant growth in &ndian mar0et has !ompelled global !omponent manufa!turers to

establish fa!ilities in &ndia. $his is giving a tough !ompetition to domesti! players and all in

all* is in-e!ting a positive growth impulse in the mar0et

Government is also feeling the importan!e of this se!tor to sustain a good growth rate. $hey

have allowed 5F 7D& and is planning to set up s0ill development !entres for small and

medium sied !ompanies.

Due to in!reasing growth and dominant share in total produ!tion* )ngine parts segment is

noti!ing a sudden introdu!tion of !ompanies !on!entrating on other parts. $he shift is ma0ing

the mar0et more demanding and diversified.

%orecasted trend

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$he trend of auto !omponent ma-ors getting into multiple automotive segments to shield

from mar0et flu!tuations will be witnessed in !oming years

8ow s!rappage rate* in!rease in used automobile mar0et and need for fre6uent repla!ements

will drive the auto !omponent aftermar0et

&n order to improve !ost effe!tiveness* vehi!le manufa!turers are redu!ing in,house

produ!tion and are opting outsour!ing to redu!e !ost investment and te!hnology up

gradation.

E. Macro environmental Situation

Political

$he Government of &ndia en!ourages foreign investment in the automobile se!tor and

allows 5 per !ent 7D& under the automati! route $o boost manufa!turing* the government had lowered e!ise duty on small !ars*

motor!y!les* s!ooters and !ommer!ial vehi!les to eight per !ent from 52 per !ent* on

sports utility vehi!les to 24 per !ent from ; per !ent* on mid,segment !ars to 2 per !ent

from 24 per !ent and on large,segment !ars to 24 per !ent from 2C per !ent.

$he utomobile Mission Plan for the period 2E%25E* designed by the government is

aimed at a!!elerating and sustaining growth in this se!tor.

the well,established Regulatory 7ramewor0 under the Ministry of Shipping* Road

$ransport and ?ighways* plays a part in providing a boost to this se!tor

$he Government of &ndia,appointed S&M and utomotive "omponents Manufa!turers

sso!iation /"M1 are responsible in wor0ing for the development of the &ndianautomobile industry.

Economical =

$he automobile industry in &ndia is epe!ted to be the world


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7unds allo!ated in the Hnion Budget 254,5@ !ould go a long way in ensuring the growth

of this se!tor.

Social*

More #ob opportunities be!ause of the Ma0e &n &ndia !ampaign

More Per "apita in!ome

More disposable in!ome and improvement in the living standard of the people

&ndia be!oming eport hub of utomobile Giants will boost employment opportunities

Study says Per "apita &n!ome may triple by 22@

(ver 5 million households would own a !ar !ompared to -ust 55 million now.

dramati! reshape of utomobile demand

Tec'nological

Government aims to develop &ndia as a global manufa!turing as well as a resear!h and

development /RD1 hub

Keeping up with international trends* there is epe!ted to be a surge in the number of

hybrid vehi!les in the &ndian auto se!tor in the years to !ome.

"ost advantage &ndia offers ma0es more players li0ely to s!ale up RD outsour!ing to

&ndia.

&ndia is li0ely to overta0e $hailand in global auto,eport mar0et share by the year 22.3ith the

government's ba!0ing* and trends in the international s!enario su!h as the de!line in pri!es ofnatural rubber* the &ndian automobile industry is slated to witness some ma-or growth. $he

!umulative foreign dire!t investment /7D&1 inflows into the &ndian automobile industry during

the period pril 2 % ugust 254 was re!orded at HSO 5*55.EA million* as per data by

Department of &ndustrial Poli!y and Promotion /D&PP1

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b2b report phase 1 - group 4

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