PREMIER Returns

Back in action with shift in focus to CVs
If there is anyone out there who had written off Premier from the history of Indian auto industry, it’s time to revise the decision. Premier is back, the only difference being that the company in its new avatar will focus on the commercial vehicle segment instead of passenger cars.

Winds of change are blowing right across the company, from the shop floor to the top management. There is an air of confidence and determination with the employees at Premier. Driving the change from top is the thrid generation scion of Premier’s founding family, Mr. Maitreya Doshi. The name of the company has been changed from Premier Automobile Ltd. to Premier Ltd. It has also adopted a new logo to emphasize that the company is not only a vehicle manufacturer but, in fact, is also an important machine tool and engineering company. The company has moved to its new corporate headquarters at Chinchwad in Pune.

Established in 1944, Premier was one of the first Indian companies to start making automobiles. In collaboration with Chrysler Corporation, India’s first car rolled out of the Premier factory in 1947, and later in collaboration with Fiat, Premier first started assembling the Fiat 500 in India. In 1954 came the Fiat 1100, one of the most popular models ever produced in the company.

Apart from the most popular car in India, the Premier Padmini, the company also manufactured the India’s widest range of commercial vehicles for a variety of road transport applications. Years from 1996 to 2004 was a particularly difficult phase in the company’s history. However, the indomitable spirit of the management team overcame the adversities and restored the company to profitability and growth.

Mr. Maitreya Doshi says: “When the going gets tough, the tough gets going. These past few years have indeed been difficult for our company, having had to face extreme challenges that threatened our very survival. However, with teamwork, determination and tenacity, I am happy to say we have overcome all our problems. We are now on a path of stability, consolidation and growth”.
The company now has 3 main businesses: Machine Tools, Engineering and Vehicles. Premier has a very strong historical presence in the Indian machine tool industry with its own brand of products. In the engineering division the company manufactures complex components for the auto, wind mill and power generating industries. Its clients include blue chip companies viz: Tata Motors, Enercon, Cummins etc. The Vehicle Division is responsible for the new range of light commercial vehicles.

“We will focus on three main activities, namely, vehicles, machine tools and engineering services. All three divisions will be continually expanded to create more activity and employment. The company, despite all its difficulties, has already invested over Rs. 175 crores in all the businesses in the past three years alone and plans to add another Rs. 50 crores in the next year. There is no plan to close or reduce any of these activities, and we will, in fact, be sharpening our focus on international exports of all the three products, in addition to our local sales”, adds Mr. Doshi

Vehicle Division

Vehicle manufacturing has always been Premier’s forte. In fact, Premier is remembered as a company which manufactured rugged, fuel-efficient vehicles more suited for Indian roads. In keeping with this philosophy, in 2004, it decided to take a relook at the vehicle business.

From being a manufacturer of products for the mass market, Premier identified certain niche segments in the commercial vehicle segment. The company decided to work with Mitsubishi for developing small commercial vehicles through the latter’s affiliate in Taiwan, CMC.

Thanks to its long history and experience in automobile business, particularly its proven strength in adaptive engineering, Premier has developed two commercially saleable products – the Sigma Van and the Roadstar Pick-up with several variants, all duly homologated and certified by ARAI, Pune.

The Vehicle Division has been more in a project phase so far, and from the current financial year, 2009-10, the company will ramp up volumes more aggressively in the market place. “Our Vehicle Business has developed and fine-tuned its products as per the market needs and, it is now set to move from a project phase to a commercial production phase, rolling out the range of new generation utility vehicles through a network of nearly 50 dealerships”, says Mr. Rakesh Mehta, Vice President - Vehicle Division, Premier Ltd.
The company has fully established its vehicle assembly capacity, including the body shop, vehicle assembly line, engine and gear box assembly. It is also setting up a paint shop. Currently, the installed capacity is 15,000 vehicles per annum which can be scaled up to 20,000 units based on the market demand. This entire project has been conceived on the premise of achieving volumes and profitability by exploiting niche markets.

Since niche markets, by definition, have smaller volume potential, the business model is based on low capital investment and a high degree of outsourced parts and components. This delivers a low breakeven volume. Premier has invested Rs. 50 crores on the vehicle project.

Roadstar pick-up trucks

Premier has clearly identified a niche in the cargo segment. Typically in the smaller vehicles with payload of less than 2.5 tonnes, it has the three-wheelers with payload of 0.5 tonnes. Then come the Tata Ace and Piaggio Ape Truk with payload of 0.75 tonnes, and then the Mahindra Maxx with a payload of 2 tonnes.

The Ace and the three-wheelers are more for intra-city transportation and the Maxx for inter-city applications. There is a clear gap between the Tata Ace and the Mahindra Maxx in terms of payload, pricing and application, and this is exactly where Premier has positioned its cargo variant, the Roadstar.
The Roadstar, which comes with a 1.5 litre diesel engine and a certified payload of 1.4 tonnes has been designed to perfectly meet the requirements of intra-city and inter-city applications. The implementation of highway infrastructure combined with increasing disallowance of large trucks entering city/town limits, the goods transportation model is increasingly becoming “hub and spoke” with a greater need for small feeder vehicles for “last mile” delivery. With many industries demanding “just in time” supplies from their vendors, there is a growing demand for small, fuel-efficient goods vehicles to commute several times a day.

The Roadstar, originally a Mitsubishi design, had MacPhearson struts for its front suspension. This is a significant technological improvement over the conventional leaf spring suspension, adding to driver comfort and ease of steering.

However, in the Indian context, the vehicles are being overloaded by nearly 50-100 per cent of their permitted payload and driven on poor roads, resulting in struts breakage, a safety hazard. Consequently, the company had to take a retrograde step and re-engineer the vehicle with a leaf spring front suspension in order to make the product commercially acceptable. This re-engineering process has been completed and the vehicles now come with mechanical leaf springs.

The Roadstar is available in both Euro II and Euro III versions. The company is already working on the Euro IV version to meet emission regulations from April 2010 in all major metros. The vehicle is also available in CNG version. Certified by ARAI, the CNG version will be very useful in New Delhi (NCR), Gujarat and other parts of the country where diesel commercial vehicles are totally banned.

In terms of applications, the company offers the normal cargo box as the basic models and has also developed a tipper version particularly for garbage removal application. It has also developed a fire truck and refrigerated carrier and is working on several other applications in order to widen the marketability of products.

In fact, my personal driving experience of the Roadstar was very impressive. The vehicle has a 1.5 litre 4 cylinder engine which is double the power of the sub one-tonners available in the market. The vehicle has more engine power resulting in better pulling capacity even on higher gradients. It is compact and has a sturdy design, strong and rugged, built for high speed and higher payload. It has a large, flat 8’ long deck, with no loss of space due to protruding wheel arches, which means that there is a lot more area for loading the cargo. Further, the low loading height and a 3-way opening deck aids easy loading and unloading. The company claims that it can touch top speeds of 100 kmph with full load. This will be of great advantage for inter-city applications.

The Roadstar has a very low turning radius which makes it extremely easy to manoeuvre within congested city lanes and has a higher ground clearance for safe travel on rough, uneven roads. Besides, the vehicle comes fitted with disc brakes in the front and drum brakes in the rear to ensure efficient braking.

Sigma

Sigma is a multi-purpose vehicle (MPV) with a variety of applications including passenger transportation, ambulance and even for express cargo delivery. This segment again has entry level products like Maruti Omni, Versa, Tata Magic and Tempo Traveller from Force Motors and Tata Winger in the top end.

The Sigma has been positioned right in between these two segments by offering the flexibility of Omni and Magic in terms of manoeuvrability and offers more pulling power due to a 1.4 litre diesel engine. The rise of new industries such as IT, BPO, Call Centres as well as the increase in tourism is creating a strong need for multi seater passenger vans. Also the national emphasis on healthcare as well as the growth of organized retail will give rise to demand for ambulances and cargo vans.
The Sigma passenger van is available in 5, 7, 8 and 9 seater configuration, both AC and without AC options with a five speed transmission. The company has also developed an ambulance (Sigma Lifeline) and a cargo (Sigma Express) variant of this van.

I’ve personally driven the Maruti Omni for many years and I can say that, Sigma has all that Omni missed out – AC, a very powerful engine for better pulling power, sturdy and offers better road grip and most importantly it comes with a diesel engines which makes it more economical compared to the petrol options available in the market.

“Premier is also targeting certain niche applications like Ambulance and Express Cargo service. In a vehicle for a medical emergency unit, patient comfort is critical. So is speed and ease of manoeuvrability. Sigma Lifeline meets both the requirements and provides the right combination of features”, adds Mr. Mehta.

These ambulances are factory built and come with stretcher, first aid box, oxygen cylinder holder, emergency siren, beacon and a storage cupboard for the necessary emergency medical requirements. Sigma Lifeline is best suited for hospitals, nursing home, social institutes, industrial units, trusts, private doctors, government health departments.

Dealer network

Premier has completely revamped its dealer network. The company has 50 operative dealers located in Gujarat, Maharashtra, Goa, Andhra Pradesh, Kerala, Tamil Nadu and Karnataka. The current focus is to establish the products in West and South India before expanding to the North and East. The dealership target is to reach 100 by March ‘10, creating an all-India network, adds Mr. Mehta.

Service is an important area to focus. Premier has set up a zonal management structure that overseas parts, service and dealer training regularly. The company has established 6 regional helplines for customer care and service. “If there is a vehicle breakdown, our service team will reach within a maximum period of two hours to any location. We know how important it is for our customers to keep the vehicle up and running”, adds Mr. Mehta.

Premier is clearly making a comeback. The process of re-establishing the company and products is slow but steady. Given the tough competition and the number of brands available in the market, it will take some time for Premier to re-establish its brand in the market.

What is really working to Premier’s advantage is its loyal workforce which has stayed with the company even during the tough times. Now with the products in place, Premier is all set to regain its past pre-eminence.

Kamaz-Vectra agreement for truck JV signed

Kamaz Inc. and the Vectra Group has entered into a joint venture agreement to manufacture the Kamaz range of trucks for the Indian market. Kamaz Inc. & Vectra Group have been working together for several years. The production of these trucks will take place in Hosur (Tamil Nadu), near Bangalore.

Kamaz Inc. is one of the largest truck manufacturers in Europe and leader in the cargo vehicle market in Russia and the CIS countries, such as Ukraine, Kazakhstan, Turkmenistan, and Belarus. Kamaz Inc. manufactures a wide range of cargo vehicles, including tractors, side-board trucks, and tippers. The vehicles come with wheel arrangements in different sizes and dimensions: 4x2, 4x4, 6x4, 6x6, 8x4, and 8x8, and with gross weights up to 120 tons.

The superstructures rest on the Kamaz chassis. The combination of technical expertise, innovative design, and competitive pricing allows Kamaz to offer customers excellent goods and services. Another advantage of Kamaz trucks is that they require simple and easy maintenance and repair.

Kamaz trucks are recognized all over the world for their reliability and sturdiness. The company works hard to provide customers with the widest range of services possible, including supply of vehicles and spare parts and maintenance. Kamaz pays a great deal of attention to the service arrangements in each country where it has operations by engaging local personnel and experts.

Addressing the media, Mr. Kogogin, General Director, Kamaz Inc., said: “We are ready to enter the Indian market with our wide range of products and we are ready to set up a complete sales and marketing network including appointment of distributors/dealers across the country.”

The Vectra Group has a multi-dimensional portfolio of companies that operate in various business domains across the world. Operations of the Vectra Group are primarily in India and Eastern Europe spanning over 18 companies with 8 manufacturing facilities in 6 countries. In addition Vectra Group has representative offices and/or investments in France, Russia, Singapore and Hungary.
The core businesses of the group are aviation (distributorship of helicopters, maintenance and repair facilities, offshore and onshore flying), heavy engineering (manufacturing of trucks and superstructures, earth-moving equipment, luxury automotive and railway seats), real estate, information technology, security systems, and exploration and production of oil.

In an interaction with the press, Mr. R.K. Rishi, Chairman, Vectra Group, said: “The focus of the Group moved to the automotive, engineering and construction equipment sectors across Eastern Europe and India. Thanks to the support of Vectra’s extensive knowledge of the region and its long-standing relationships, Vectra has been able to expanded its operations through partnerships with other global leaders such as Terex Corporation of the US, Fainsa of Spain and Eurocopter of France and now is joining hands with Kamaz Inc. of Russia to manufacture Kamaz range of trucks in India”.

Cumulative truck sales down by 49.22 per cent in 2008-09

With over-capacity built up, truckers refused to respond to the economic stimulus offered since December by way of 50 per cent depreciation allowance and 43 per cent cut in excise duty on trucks. Hence truck sales crashed in March by 49.22 per cent, with cumulative slump in sales by 38.69 per cent in 2008-09, according to the monthly report of the Indian Foundation of Transport Research and Training (IFTRT).

Repossessed goods carriages numbering over 25,000 with auto finance firms / banks on account of loan default by truckers continued to be available for resale. This has posed direct competition to new trucks as they are less than two years old. At the same time, automobile dealers / manufacturers have been left with three weeks’ inventory as against two weeks normally held in the last quarter of a fiscal.

The year 2008-09 witnessed a fall of 38.69 per cent in truck sales to 164,518 trucks (5 ton-49 ton category) from 268,360 units the previous year. The maximum drop was in sales of 16.2 ton and 25.2 ton heavy trucks and 30-49 ton tractor trailers as it plummeted to 41,529 units, 68,361 and 9,917 in 2008-09 against 50,445, 110,576 and 25,685 units the previous year.

The entry of new players in business has virtually dried out in the last 5-6 months because truck operators hardly see any sign of recovery in the manufacturing sector in the near future and a consequent increase in cargo offerings. In fact, the replacement cycle of truckers operating on trunk routes has been extended to 6-7 years, and hence further fleet expansion is ruled out.

After the stimulus package failed to boost truck sales, vehicle manufacturers are understood to be seeking a commercial vehicle scrappage policy by the Government to remove 10-year-old trucks from Indian roads, irrespective of the health of a truck / bus. The main plea is that older trucks cause more air pollution and therefore require to be “culled” through a process of “mercy killing”. Even one or two-year-old goods carriages in the country are generally spitting foul air with rampant overloading of cargo in excess of their prescribed gross weight limit.

The health of the Indian trucking industry can be restored by effectively combating the menace of overloading rather than hunting for a kill to enhance truck sales by advancing dubious arguments to modernize the Indian fleet. It is learnt that truck operators are firmly opposed to any irrational move to scrap old trucks on the basis of age rather than the health of the vehicle.

Truck rentals move up

Meanwhile, the report also pointed out that improved cargo offering due to healthy arrival of summer fruits, vegetables and wheat procurement led to a surge in truck rentals by five-six per cent during March 7-April 6, along with a 56.35 per cent drop in new addition of truck fleet in the last six months.

While the November-January 2009 quarter witnessed a 19-25 per cent drop in truck rentals on trunk routes, February witnessed a range-bound movement of truck rentals. There was an improvement in truck rentals with a substantial increase in cargo offering due to heavy arrivals of summer fruits, vegetables and wheat procurement.

It is noteworthy that after a sustained double-digit growth in trucks and trailers since 2001-02, the fiscal 2008-09 witnessed a 39 per cent drop in truck sales as only 164,518 units were sold as against 268,360 units in fiscal 2007-08.

In addition, the unprecedented repossession of delinquent vehicles to the tune of 28,000-30,000 units also took away significant fleet from the market, and thereby the combined and cumulative impact of drop in truck sales and repossession of trucks reduced the pressure on the truck freight market.

The trucking industry does not seem to be very optimistic about economic recovery without adequate investments in both the infrastructure sector and house building. Truck transport is dependent on derivative demand, and therefore its health remains fragile in direct relation to economic growth or degrowth.

Raw cargo application, a growing trend

Today truck applications in India are wide and complex being spread across diverse geographies, specific to each cluster and very challenging to address the unique needs of the customer. However, the RACE research team has categorised the segment into six major application segments based on the cargo moved and address the needs of the customer through standard product mix. This would help to standardise road regulation, improve productivity and availability, and reduce the overall cost of transportation.
RACE has classified truck applications as:

* Flat or open cargo truck body designed with open top, flat or with side boards fixed or collapsible.

* Closed or covered cargo including standard ISO containers/refrigerated containers. Truck body designed with all sides closed can be an ISO container or built on chassis or made to different sizes.

* Raw cargo from mines or semi-processed cargo-superstructure designed to carry and dump raw materials from mines and storage houses.

* Bulk (dry) or processed cargo - superstructure designed to carry powdered or granular in structure (other than raw bulk) from manufacturing unit to distribution centre and vice versa

* Liquid cargo-Superstructure designed to carry any cargo in liquid / gaseous form such as milk, water, fuel, gas, oil, etc.

* Specialised cargo like over dimensional cargo- Superstructure designed to carry any oversized cargo, rigs or any other special requirement
This classification would facilitate development of customized products, organise and regulate the movement for better safety and economics.

The chart below highlights the percentage split of major applications:

With growing awareness on environmental needs, pollution, pilferage and also the expected government initiatives and enforcement for movement of cargo in closed condition, the share of open cargo will get distributed to closed or containerized cargo by approximately 10 per cent. Bulk or processed cargo will increase by another 10 per cent progressively over the next five years.

The light weight collapsible canopies, curtain sider and roll tarp covers will also be seen to be the most attractive products in the market in the days ahead.

The raw cargo movement in India has become more attractive with clear direction from the government in terms of budget allocation and focus on infrastructure building and mining. By definition of raw cargo is mostly raw materials from mines which are transported to storage houses or processing centers to become processed cargo.
There are various forms of superstructure designed and built on trucks to carry and dump raw materials from mines and storage houses.

The pictures below highlight the raw cargo application in the construction industry:

The RACE research team has been able to capture the shift pattern of the vehicle GVW category of the vehicle used in the raw cargo sector. There is clear shift in the tonnage of vehicles.

Further we can broadly classify the materials transported in raw cargo application as light (density of material between 0.8 to 1.2 kg/cum), medium duty (1.2 to 1.8 kg/cum), and heavy duty (1.8 and above).

The RACE design and product research team has been working with international bench markings to come up with specifically designed products to suit materials in the above category.

The percentage split between the light, medium and heavy is as follows:

The team is also in the process of understanding and looking at the feasibility of usage of different types of material (hi-tensile / hard steel / domex / Hardox / other alloys) for superstructure construction in order to have tare weight and reduction and also improve the life span of the product.

These specifically designed product categories will help OEMs in mapping their customer requirements exactly and offering the customers a more reliable, durable, cost-effective product which, in turn, results in superior performance and profitability to them. For details, contact: rajesh@westernautorace.com / dushyant@westernautorace.com

Accord on national permit scheme

The Union Government and AIMTC signed an agreement in January last to formulate a new national permit system. The Government constituted a committee for the purpose which, in its report, recommended fixation of a composite fee of Rs. 15,000 per annum per vehicle.

The vehicle plying on national permit would be authorized for operation throughout the country. The level of composite fee would be reviewed after one year. In case there is any shortfall vis-a-vis the revenue earned by the States, keeping in view the accruals on account of composite fee in 2008-09, the fee would be increased to the desired level.

AIMTC agreed to compensate the revenue loss and pay the enhanced fees. In case there is surplus fund, the same may be utilised for undertaking road safety activities in the country.

Collection of composite fee through e-payment system would be implemented by the States from June. Further, the committee has decided to recommend that the proposed composite fee system be applicable on or before January 1, 2010.

Mr. Charan Singh Lohara, AIMTC President, thanked Mr. Brahm Dutt, Secretary, and Mr. S.K. Dash, Jt. Secretary, Ministry of Road Transport & Highways, for their efforts towards the successful finalisation of the agreement.

Black Diamond Motors provides complete tipping solutions

Bilaspur district in Chhattisgarh is one of the major mining hubs in India. Headquartered in this hardcore mining belt is Black Diamond Motors, a leading manufacturer of goods and bulk carriers for goods transporting vehicles in India. The company is promoted by Mr. Parvinder Singh Bhatia and Mr. Pushpinder Singh Bhatia who are pioneers in the field of fabrication for the last 30 years.

The company’s heritage was built over three decades in the mining belt which has enhanced its natural ability and domain expertise to establish itself as one of the total solutions providers pertaining to raw cargo applications.

With an impressive start of operations in Bilaspur in December 2006, the company sold its first 250 tip trailers, 100 tippers and 50 rock bodies in two years. With the current capacity of 1,000 trailers / tippers bodies per annum, Black Diamond has emerged as one of the most preferred suppliers in the east and central regions of the country.

In addition, the factory is spread over nine acres and is equipped with state-of-art plant and machinery, including shot blasting and CNC press brake/shearing machines. The company is also equipped with modern technology machines, including hydraulic press brake and shearing machines, overhead cranes of up to 10 tonnes capacity, shot blasting machine, paint booth, MIG welding machines, etc.

Black Diamond has been in the forefront to offer a wide range of tippers, tip-trailers, rock bodies, bulk carriers and custom-designed bodies which find wide acceptance among highly discerning customers in the goods transporting segment of the automobile industry.
“We have targeted to increase the profitability of commercial vehicle operators by offering most reliable and innovative trucking solutions with high efficiency in minimum operating cost. We are the only manufacturers of tip-trailers in India providing the lightest yet toughest tip-trailers by using better grade steel, thereby providing maximum payload to customers”, says Mr. P.S. Bhatia.

Black Diamond has now tied up with a Dubai-based company for market research, design engineering and services support. With this association it has strengthened its existing marketing/R&D section with CAD/CAE, CATIA facility and capable of design & development of optimally-designed bodies which exceed customer expectations.
New initiatives

Black Diamond is showing a keen interest in channelizing its expertise to enter new markets/product lines such as development of rock body tippers, garbage compactors, cement bulkers and side-tipping trailers. Through these measures the company has kept its customer focus intact, and the emphasis is on creating long-term value for the customers by understanding their most specific needs. There is an increasing demand for application-specific products along with the standard conventional ones and the industry-specific products.

The company is in discussions with all major commercial vehicle manufacturers to cater to their requirement of tip trailers and tippers, particularly in Chhattisgarh and other eastern markets. The classic case is that of the most prestigious order from Mahindra Navistar which is currently homologating its trucks, using tip-trailers from Black Diamond for testing purpose. The company has also supplied a few units to AMW and Ural. Most of the bodies built so far have been supplied to local customers in Chhattisgarh who are meeting Coal India’s requirements.
The company has demonstrated a strong commitment to provide simple yet superior solutions to its customers and has been successful in understanding and fulfilling their needs and requirements. The constant focus to reduce the lifecycle costs for its customers has helped the company deliver robust products that survive harsh environments at customer locations.

The excellent services support network of distributors and suppliers has helped the company meet customer requirements by delivering the products on time. This commitment has enabled it to help its customers achieve operational efficiencies through their operations.

Black Diamond is sitting on a bed of opportunities. The economy of Chhattisgarh is largely natural resource driven and it leverages the State’s rich mineral resources. It is centrally located with high mineral resources and industries like steel, aluminium and cement.

The State accounts for 14 per cent of major mineral production of India. With a power surplus status attracting power-intensive industries. It is poised to become the power hub of the nation. It is evident that the last lap transportation of all minerals is to be done by tipping trailers/tippers.

With a strong base in the region, Black Diamond Motors can take full advantage of the opportunities lying ahead.

Shell Lubricants' Product PLUS services introduced

Shell Lubricants, the global market leader in finished lubricants, has unveiled a new range of Product PLUS services. The company recognises that simply supplying high quality lubricants is not always enough to give its customers a clear competitive advantage, and has developed this range of services aimed at helping them get the best from Shell products.
In practice this means that customers get the best performance, fuel economy, extended maintenance intervals, reduced maintenance and can even prevent failures. This ultimately saves money too.

Introducing the service portfolio in India, Donald Anderson, Country Head - Lubricants, Shell India Markets Pvt. Ltd., stated: “The launch of the Product Plus service portfolio reinforces our strong commitment to providing value to our customers. Shell has been a global front-runner in the lubricants industry in providing customers products with state-of-the-art technologies and innovative as well as effective services. We are determined to bring to our customers in India the same success drivers to enable them to experience their benefits.”

Shell’s Product PLUS portfolio has a wide range of services to meet the needs of B2C and B2B customers in India. Some of the services included in the portfolio are Shell LubeAnalyst, Shell LubeAdvisor, Shell LubeClinic, Shell LubeCoach, Shell LubeExpert and Shell LubeVideoCheck, with the latest addition to the family, Shell LubeMatch. This web-based tool is designed to help customers match their vehicles and engines to the correct lubricants, whether in the commercial vehicle, industrial or off-road sectors. The website, www.shell.com/lubematch/ is simple to use with drop down menus and provides recommendations for the right lubricants for your equipment or vehicle within seconds.

Mark Raynes, Shell’s Global Services Manager, commented: “We have had a tremendous response to the launch of our new range of Products PLUS service across the world. For example, the online service Shell LubeMatch has witnessed over 2.5 million users already worldwide. The Shell LubeMatch service, which is available in 94 countries and 19 languages, is one of the most important services to us as it puts information that enables our customers to make the right lubricant decision through a free online tool. Now finding answers to important lubricant questions is easy! Our services are already demonstrating the value that product can deliver in real life cost savings and improvements for our customers.”
Shell’s Product PLUS helps the customers get the best performance and efficiency from Shell products. The company plans to continue investing in new innovative services to help customers realize maximum benefit from Shell’s products. The new range of services is already saving a significant amount of money for Shell customers around the world. Shell makes and sells more than 3,000 different lubricants to meet customer needs across a wide range of applications. These include consumer motoring, commercial transport, mining, food processing and power generation. It has five lubricants research and development centres in the UK, Germany, France, the US and Japan.

Shell manufactures some of the world’s most efficient engine lubricants. Its portfolio of lubricant brands includes Shell Helix, Shell Advance, Shell Rimula, Shell Rotella, Shell Tellus, Shell Cassida, Shell Spirax, Pennzoil and Quaker State. All these brands cater to different segments of automobiles.

Shell is the largest and most diversified international investor in India’s energy sector, with nearly $1 billion invested already. It is the only international oil company to have a fuels retailing licence in the country. Shell interests in India include LNG, lubricants, LPG, bitumen manufacture, aviation, marine, technology licensing, software development, a financial services centre and basic R&D. It is also a major private sector supplier of crude, products and chemicals to public/private sector oil companies.

In India, Shell Foundation has already spent more than $7.5 million across seven programmes impacting more than 1,19,000 households and about 200 entrepreneurs.

Valvoline proves fastest growing Indian lubricant company

Valvoline has successfully completed a decade of its presence in India. The company has established itself as the fastest growing lubricant company in India. Valvoline has set an ambitious revenue growth target for the year 2009 even in very challenging market conditions. The company has taken many new initiatives to increase its share in the highly competitive lubricant market.

Mr. Vinay Pande, Head - Marketing & Business Development, Valvoline Cummins Ltd., says: “In a declining market scenario, Valvoline has managed to grow in all its core segments, namely, diesel engine oil, passenger car segment and two-wheeler segment. We have been increasing our marketshare in all segments”.

Valvoline Cummins Ltd. is a joint venture between Ashland Inc., USA, and Cummins Sales & Services (India) Ltd., a wholly-owned subsidiary of Cummins India Ltd. Valvoline is today the fastest growing lubricant marketer and producer of quality branded automotive/industrial products. The products offered in the Indian market include automotive lubricants, transmission fluids, gear oils, hydraulic lubricants, automotive filters, specialty products, greases and cooling system products.

“We have come a long way since we started our operations in India in 1998. We are a growing dynamic company having base of 54 stock points delivering products and services to more than 500 distributors for bazaar trade. In bazaar trade we approximate that our products are available in more 26,000 retail counters across India”, says Mr. Pande.

The year 2008 was a landmark year for Valvoline Cummins in India, because it undertook and accomplished successfully its special mission called 50K during the year. Mission 50 K was the goal that the organization set for itself in 2007-08.

“This envisaged a target of 50,000 kl volume of lubricant sales for that financial year. The target meant that we needed to grow well over 20% on previous year’s volumes. We are proud to say that we achieved the set target by reaching our goal for the year. This endorsed the fact that Valvoline Cummins Ltd. continues to be amongst the fastest growing lube companies in India”, adds Mr. Pandey. The company clocked a turnover of Rs. 470 crores in 2008.

Valvoline has also taken a number of initiatives that helped in increasing its marketshare. The company recently tied up with BEML, Sonalika Tractors, Mahindra & Mahindra and Terex Vectra, for further strengthening its position with the OEMs. Valvoline has also recently launched a co-branded genuine oil for M&M Powerol Division after extensive field trials. M&M Powerol powers diesel generating sets from 5KVA to 140 KVA.

At the ground level, Valvoline has conducted extensive van campaigns across India. “We do a lot of ground level activity which has helped create awareness for the product. We have been running van campaign across India with more than 36 vans running across the length and breadth of the country. These vans are equipped with audio visual devices. The van campaign has been very successful for Valvoline in providing visibility for the brand in urban, semi-urban and rural areas”, adds Mr. Pande.

Valvoline has also been conducting training programmes for mechanics across the country. Typically, the company identifies roadside garages which have the potential to improve and provide them training on the latest technology engines and aggregates. This has helped build a certain loyalty factor for the brand with the mechanics. The company has till date covered over 350 mechanics all over the country.

Among the new product launches, Valvoline has recently launched a unique product for used trucks. In India, 80 per cent of the trucks are old vehicles which have run for over 200,000 km, and this oil has been developed and tested extensively to suit older engines. This is a unique product and the first of its kind in the market. The product has already been launched in select markets in the North and in Vijayawada in the South.

This product is clearly performance oriented and is the product for the future, according to Mr. Pande. The company is also coming out with a completely new packaging for all its products which will be as per the global standards.

Another interesting initiative is the Valvoline multibrand bike service centers. The two-wheeler segment is undoubtedly the fastest growing segment with nearly 7 million bikes getting added to the market every year. Currently there are not many options available for servicing two wheelers. vehicles will have to be serviced either at the authorised service centre or with the road side mechanics. Multi-brand bike service fills the gap. Valvoline is currently testing this model in two locations in Gurgaon and Ludhiana and the results are very encouraging, says Mr. Pande.

These are currently company-owned outlets and in future the company is looking at developing a franchise model to expand it across India. In fact, Valvoline ropped in Australian Cricketer Ricky Ponting as its brand ambassador who is being initially used to endorse premium lubricants for 4 stroke motorcycles and this has helped gain lot of visibility for the brand, adds Mr. Pande.

Valvoline has been in India for just over a decade but it has undoubtedly established itself as the fast growing lubricant brand in the market. Currently 14% of its total business comes from Motorcycle oil, 6% comes from passenger car segment and close to 58% comes from diesel engine oil in the aftermarket.

“We are very innovative and we change and adapt very fast as per market requirement. This is the key reason for the success of Valvoline in India”, concludes Mr. Pande.

JK Tyre setting up OTR plant in Mysore

JK Tyre & Industries Ltd., the industry leader and manufacturer of well-known brands like JK Tyre, Vikrant and Tornel, is penetrating into the Ultra-Large OTR tyre segment. The company has started producing the revolutionary OTR tyres which cost upto Rs.2 lakhs each and will be available in three sizes of 18.00-33, 21.00-35, 24.00-35.

This project is a result of an agreement between BEML and JK Tyre for supply of these Ultra-Large tyres to BEML for their modern vehicles and supply to Coal India Ltd. who is one of the largest consumers in the world for OTR tyres. The application of the tyres would be for the construction machines like earth movers, etc.

Dr. R.P. Singhania, Vice Chairman & Managing Director, JK Tyre & Industries Ltd., said: “We are already a major player in Off-The-Road (OTR) tyre segment and have presence across India in almost all applications like Mining, Rock Excavating, Quarrying, Dam Building and Port operations. Now we are expanding in the manufacturing of Ultra-Large OTR tyre in our new state-of-the-art manufacturing facility at Mysore. Our OTR tyre expansion plans will envisage an increase of almost 100% tons per day from existing operating capacity. Targeted completion of the OTR tyre expansion project is March 2010.

He added: “We have entered into a joint venture agrement with BEML Ltd. which is the largest OEM of OTR Tyres for producing large earth moving equipment for Coal India. We have delivered the first consignment of the tyres to BEML. The tyres delivered are 24.00-3548 PR tyre weighing almost 750 kgs and standing almost 7 feet tall. The largest tyre in the range for BEML will be 40.00-5758 PR weighing almost 3,700 kgs and standing almost 12 feet tall.”

JK Tyre is expanding despite the slowing domestic market. It is investing Rs. 120 crores into the OTR plant at Mysore which will be completed by March 2010. The company also has free access to countries forming part of North America Free Trade Agreement trade block, besides emerging economies of Latin America. The company plans to utilize these markets for exporting its OTR tyres out of India next year.

Design of these ultra-large tyres is based on extensive, application oriented, study and use of high-end design techniques, including performance prediction tools through use of FEA. The objective is to deliver bench mark performance in this category of products which are subjected to use in the most grueling condition in mines and other application areas. The technology development for these high-performance tyres is a result of dedicated cross functional teams involving the Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) and other Development Wing and Service experts.

Apollo rolls out OTR tyres

XTRAX-branded off-the-road (OTR) tyres have started rolling out of Apollo’s Limda plant in Gujarat. A result of state-of-the-art technology, continuous production of OTRs began with an enormous 49-inch tyre (or over eight feet high), weighing as much as 1,100 kilograms or 1.1 ton. XTRAX tyres cater to vehicles in the mining and construction industry. This particular 49-incher would be fitted on to 90-tonner dumper trucks.

What leaves one amused about these huge tyres is the volume of raw material used per tyre more than 35 kgs of bead wire around 170 kgs of fabric and 850 kgs and more of rubber, apart from other material in similar quantities.

The time taken to produce a single 49-inch XTRAX, right from the mixing of compounds to the final product is around 24 hours. The last stage of production called curing, itself takes over eight hours. Special conveyor belts have been installed inside Apollo’s flagship Limda plant to facilitate the movement of these bulky products from one location to the other and a crane to load them on to trucks from the loading bay.

With tyres of this size, changes are inevitable!

Said Satish Sharma, Chief, India Operations, Apollo Tyres Ltd.: “Our OTR journey has been hastened since the acquisition of Dunlop South Africa and the OTR capabilities they have. The production of large OTR like the XTRAX 49-inch, has successfully filled a vital gap we had in our product portfolio. Producing higher size Off-The-Road tyres involve superior technology and skills.”

Currently, off-the-road tyres manufactured by Indian companies range from 24-inch to 49-inch, with the market size being valued at Rs. 7 billion a year.

According to the Automotive Tyre Manufacturers’ Association (ATMA), the average monthly production of OTR tyres in India is around 11,800 units. This has seen a 9% growth in the April-December (FY08-09) period, over the same period last year.

Alignment Systems sets up Indian subsidiary

Huge growth opportunities for Car-o-Liner and Josam
Alignment Systems, the world’s leading manufacturers of equipment for repair and inspection of damaged vehicles, has established its Indian entity recently. The Indian company, Alignment Systems Indian Private Ltd., will be headed by Mr. Jasvinder Singh, who will be its Country Manager.

Alignment Systems has two major brands – Car-o-Liner and Josam. They also provide knowledge through the Alignment Academy which focus on method training within the damage repair operations. The Indian entity will be responsible for Indian and Sri Lankan market.

In an exclusive interview to MOTORINDIA, Mr. Per Madsen, Director responsible for Asia and South America, said: “India is our top priority market and we want to deepen our presence. As a first step we have set up our Indian subsidiary and at a later stage we will establish our full-fledged training Academy here”.

Alignment Systems is one of the world’s leading manufacturers of equipment for repair and inspection of damaged vehicles, including cars, light trucks, heavy-duty trucks, trailers and buses. Alignment Systems consists of two groups, Car-O-Liner focusing on cars and light trucks and Josam focusing on heavy-duty vehicles. Both companies have extensive knowledge in their field of expertise and they form together unsurpassable competence.

The company provides total quality solution based upon the most efficient methods for repairing and measuring damaged vehicle bodies and frames. Moreover, Josam provides products and techniques for wheel- and axle alignment on heavy-duty vehicles.

“Alignment Systems has been in India for more than a decade now. The company initially started by selling its Car-o-Liner range of crash repair systems for passenger cars. Our first major customer in India was Honda”, recalls Mr. Madsen. Today there are more than 350 Car-o-Liner installations in India across the dealerships of all vehicle manufacturers.

Alignment Systems works with local distributors in all major markets. In India, the company is working with Madhus Equipments for the Car-o-Liner brand and Rai Automotive Systems for the Car-o-Liner brand and Josam brand along with Tribotech. “We will continue to work with our existing distributors and there is no change in the way we would be working in India”, adds Mr. Per Madsen.

A well-developed co-operation between Car-O-Liner and Josam, comprising product development, engineering and quality control, ensures that the products and services supplied by Alignment Systems, are of the highest possible quality. Repair methods and techniques are developed in-house at training centres or in the service workshops.

An essential part of the group activities is to provide standard as well as tailored training for customers, vehicle manufacturers and other important parties within the core business.
Alignment Systems has its subsidiaries based in Scandinavia, the US, England, Holland, Germany, Poland, France, Spain, Thailand and China. Most other parts of the world are covered through national distributors in more than 60 countries. The company has training centres at its headquarters in Sweden and at all their subsidiaries and at an important number of distributors around the world.

In India, Alignment Systems through the Alignment Academy is working very closely with vehicle manufacturers in developing training repair manuals and repair standards. The company has developed Body Repairs Manuals and Flat Rate Time Manuals for Maruti Suzuki. Alignment Academy, part of Alignment Systems develops and produces these repair manuals for various vehicle manufacturers. The material will be delivered as electronic multimedia manuals and videos and has just started the development of repair manuals for Tata Motors.

Alignment Systems is a major supplier of carsh repairs systems to all major OEMs in India including Honda, Toyota, Maruti Suzuki, Tata Motors, BMW and Hyundai says Mr. Jasvinder. Car-o-Liner is the sole supplier of crash repair systems for all BMW service centers in India.

Having established the Car-o-Liner brand in the Indian market, the next focus is the Josam brand, says Mr. Madsen. Ten years back when Car-o-Liner was launched in the Indian market, it took a lot of efforts by educating customers through seminars and workshops on the need for crash repair systems. Today it is mandatory to have crash repair systems for all garages handling the new generation cars. “We expect a similar change to happen in the truck and bus segment”, says Mr. Madsen.

With most commercial vehicle manufacturers including Tata Motors, Ashok Leyland, Volvo and Mercedes offering fully built solutions, it becomes necessary to have crash repair systems to cater to its customers in case of accidents. “Josam can put vehicles back on road very fast and this is a major advantage for fleet owners. We are planning to get more aggressive on Josam brand in India”, adds Mr. Madsen.

Volvo is already using Josam crash repair systems at its service centre in India. Josam also offers wheel aligners for trucks and buses. The new Mercedes truck assembly plant in Chakan uses Josam wheel aligners to check all the vehicles which roll out of the assembly line.

“Ashok Leyland has also installed two of Josam’s equipments in its dealerships. We are conducting seminars and demonstration camps to create more awareness for the product”, says Mr. Jasvinder Singh, Country Manager, Alignment Systems India Private Ltd.

With global vehicle manufacturers entering the Indian market, crash repair systems will be mandated by all these manufacturers as part of their service infrastructure. In the truck and bus segment, as manufacturers move towards offering fully built solutions with factory built cabins, it will become more necessary for service facilities to have crash repair systems for service these expensive vehicles.

Also with growing radialisation and increasing awareness among fleet operators on the advantages of wheel alignment, it will become compulsory for service centers to install wheel alignment systems.

Alignment Systems, with both its brands Car-o-Liner and Josam, has been in India for over a decade now and has good understanding of the Indian market with strong linkages with OEMs. The company is well positioned to take advantage of the market opportunity lying ahead.

Hella India strengthens aftermarket operations

Behr-Hella service launched

Mr. Franz – Werner Drees, Director & Executive Vice President - Aftermarket & Special OE, Hella KgaA Heuck & Co., was in India recently to meet the Hella India aftermarket team. He was all praise for what the Indian team has achieved under the dynamic leadership of Mr. Ramashankar Pandey who is currently the Director of Hella’s aftermarket operations in India.

It was in mid-2006 that Mr. Pandey undertook the daunting task of re-establishing the Hella brand in the Indian aftermarket. This brand is not new in India, having established its presence with manufacturing facilities nearly five decades ago. Hella entered the India market in 1961 with JMA Industries for horns manufacturing and also had a joint venture with Padmini Engineering for production of horns and actuators, now fully owned and renamed as Hella India Electronics.

But the aftermarket needed more clarity as regards the Hella brand, and Mr. Pandey was entrusted with the responsibility of completely revamping the distribution network and establishing Hella as a trusted brand in the Indian market. In less than three years, Mr. Pandey and his team have been able to achieve the mission, and that’s precisely the reason why Mr. Drees was in India recently to congratulate the team.

Mr. Pandey is not complacent with the success. “This is the first step in our long journey towards establishing the Hella brand as the leading manufacturer of automotive lighting and electronic components, as what it is known to be globally”, he says.
At the meet held recently Hella announced the launch of Behr-Hella service for thermal management in the Indian aftermarket. This opens up a huge opportunity both for the aftermarket division and its business partners.

Behr Hella Service, a joint venture by Behr and Hella, was up in November 2005 for the purpose of jointly covering the global independent aftermarket for vehicle air conditioning and engine cooling. Behr and Hella each have a 50 per cent share in the joint venture. Behr is already present in the Indian market in a joint venture with the Anand Group catering to most of the Indian OEMs, including Tata Motors as the single source for Nano.

This is a big step forward for the aftermarket division in India. This widens the range of products offered by Hella in the Indian aftermarket and makes more business sense for its channel partners to deal in Hella products.

Mr. Pandey says that the vision of Hella’s aftermarket division is to establish the core values that the Hella brand stands for – “Quality”, “Safety” and “Innovation”. To strengthen the distribution reach, Hella plans to complete the appointment of 36 distributors in major Indian metros to promote its accessories and spares segment, both for passenger car and commercial vehicle target market.
Hella has drawn an aggressive road map for expanding its business in the Indian market. With its newly established business organizations Hella India Electronics Pvt. Ltd. (HIE), Hella India Lighting Ltd. for SOE and its division (HIL-IAM), as well as design solutions, Hella introduces a comprehensive range of quality automotive parts and accessories through an expanding network of local distribution channel partners across the country.

In 2005, under the leadership of Mr. Stephan Gerres, MD-HIE and HIL, the Hella Group took 100 per cent control in Padmini Engineering Pvt. Ltd. and by 2006, the name was changed to Hella India Electronics Pvt. Ltd. Hella continued with brand name “HELLA” and took control of its core business of actuators, horns, temperature sensors and accelerator pedal sensors.

There is no product turned out by Hella Group in India with the brand name “Padmini” since the third quarter of 2006. Hella has no local partners who are allowed to use technology or brand name of Hella.

Manufacturing facilities

Hella has manufacturing facilities for lighting products at Derabassi in Punjab and for electricals & electronics at Gurgaon in Haryana.

Hella India Electronics (HIE) specialises in the development and production of horns, actuators, flasher sensors, central-locking system control units and switches. It employs more than 500 people at its plant in Gurgaon. Its major customers include Tata Motors, Mahindra & Mahindra, Hyundai, Suzuki, Honda, General Motors and Lumax, and the company is ISO/TS16949/2002 and ISO 14001 certified. The company has achieved “O” PPM with major customers including Honda, Hyundai, and Air International of the US.
As the leader in producing headlamp levelers in India, HIE is expanding its production capacity to keep pace with the growing need of vehicle manufacturers. HIE is also expanding its product portfolio with the manufacturing of accelerator pedal sensors, which will be mandatory with the implementation of Euro-IV emission norms, in addition to introducing newer technologies in India with the latest state-of-the-art products like rain and light sensor, keyless entry, intelligent battery sensors, and various body control modules. HIE is the competency centre for horns in Asia and switches and existing range of thermal sensors globally.

The following are the new product launches for OEMs:

* Accelerator pedal sensor: New environmental norms for all Indian vehicles to have this sensor fitted for better fuel efficiency and ensure stricter pollution control. Hella already enjoys 80 per cent market share for this product in Europe and is already supplying from Germany to Maruti Suzuki. Local manufacturing in Hella India Electronics plant at Gurgaon is expected to start in the third quarter of 2008.

* Rain and light sensor: As driver comfort and assistance systems are getting increasingly popular in India, Hella is putting up its resources to take the bigger pie of this market. The first India customer is Mahindra & Mahindra, where Hella has started supplying these sensors from its German plant.

* Temperature sensors for HVAC application outside ambient temperature measurement.

* Electronic architecture for vehicles with support from Europe and with end electronics with domestic design and production are in the pipeline.

Hella India Lighting (HIL) works closely with local OE customers such as Tata Motors, Ashok Leyland, Mahindra & Mahindra and Terex Vextra to develop headlights, auxiliary lamps, single function lights and work lamps for their fleet. The company is ISO/TS 16949 certified.

There is also a renewed focus on its “niche” segment strategy of HIL in the area of agro and construction, after the new management has taken over under Mr. Stephan Gerres. The much-awaited modernization program of HIL’s Derabassi factory accounting for 80 per cent of HIL’s total production is being implemented on a war footing and the “Quality First” approach is being integrated at the shop floor.

Mr. Gerres assured that every single effort is being put at HIL to produce products as per the need of the customer and have all processes inbuilt with customer centric approach. A reliable and responsive marketing communication is being done with all the existing customers in the SOE segments and positive developments are happening by means of customer appreciation about the countermeasure taken to build long lasting credibility. To keep our products competitive, a series of cost cutting measures, including consolidation of manufacturing facilities is being done at a fast pace.

As an original part supplier, Hella continually needs to meet the high demands made by the automotive industry on quality and price merits. All Hella production facilities have in place the most stringent quality tests and standards, to assure customers the reliability of the Hella quality. The manufacturing facilities are equipped with latest testing equipments such as environmental chamber, thermal shock chamber, salt spray chamber, vibration tester, dust chamber and water spray chamber, acoustics chambers with newest available international and domestic technology. Our parts comply with different international accredited standards like CCC, E-Marks as per customers requirements.

Design & development

Hella has also established a design & development (D&D) centre for sophisticated automobile electronics design in Pune. Currently, more than 130 engineers are working there for international and domestic demands. Since 2006, Hella Group also provides technical solutions for automotive lighting from its Chennai-based D&D office with more than 40 engineers.

Hella has a very strong aftermarket business all over the world. With sales companies and partners in more than 100 countries, Hella ranks as one of the world’s largest international trade enterprises for automotive parts and accessories.
An important basis for the global success of Hella’s uniquely organised Independent Aftermarket division is its “4+2 strategy”. “4” represents the product in its four core competency fields of lighting, electrics, electronics and thermal management, and “2” stands for aftermarket sales support and technical service.

HIL-IAM is a part of the Asia Pacific regional headquarters for the independent aftermarket located in Singapore, with operations spanning across 26 markets. With a new set-up and head office in Gurgaon and regional teams at Mumbai and Chennai, HIL-IAM aims to aggressively expand its distribution channels country wide, and has recently appointed distributors in New Delhi, Gurgaon, Mumbai, Chennai, Kolkata, Gawhati, Ahmedabad, Surat, Bangalore, Hyderabad, Mangalore, Cochin, Goa, Nagpur, Raipur, Pune, Jaipur, Ludhiana, Gaziabad, Jamshedpur, Patna & Jammu, all within the past year.

Along with popular products such as Red Grill supertone horns, disc horns and reading lights for the passenger car segment, as well as headlights, lighting spares and rear lights for the commercial vehicle segment, Hella has integrated its global product offerings with the latest technologies to provide driving comfort and safety on Indian roads. This is backed up by world class logistics set-up, sales and technical service support by expanding the aftermarket organization base to major metros of India.

Hella has announced the launch of its new website, www.hella.co.in, specifically for the Indian market. This website serves as a portal to provide quick insights and direct access to information on Hella’s organizations and services in India.

“The website is a positive step forward to build the Hella brand in India. Product information is readily available and updated regularly In the near future, we hope to incorporate other elements to keep the website more interactive and interesting for our customers,” commented Mr. Pandey.

SKF India’s Haridwar project construction work begins

SKF India, a leading technology and solutions provider of bearings, seals and related products, has announced commencement of construction work at the new manufacturing site in Haridwar, Uttarakhand. The state-of-the-art SKF project will be operational by January next.

The company will be investing Rs. 1,500 million in this project and plans to employ more than 200 people. The plant will specifically cater to the automotive market segment in India.

Situated over an area of 10 acres, the new bearing factory, with a production capacity of 40 million bearings, will manufacture deep groove ball bearings to cater to the demands of both the automotive and manufacturing sectors.

Commenting on the occasion, Mr. Rakesh Makhija, Managing Director, SKF India Ltd., said: “The last few months have been challenging for the economy. As a company we continue to be very positive on the Indian market. This expansion is yet one more step towards demonstrating SKF’s commitment to being a market leader. Uttarakhand is an emerging industrial hub in the country. SKF’s strategic move to increase production capacity through the Haridwar plant signifies our commitment to serve customers effectively and will allow SKF to further increase its share in the developing two-wheeler and automotive market.”

Eicher Engineering’s Dewas plant opened

Eicher Engineering Components’ new plant at Dewas in Madhya Pradesh was recently inaugurated by Mr. Peter Karlsten, President & CEO, Volvo Powertrain Corporation, at a formal ceremony attended by senior officials of Volvo Powertrain as well as by Mr. Siddhartha Lal, MD & CEO, VE Commercial Vehicles Ltd., and Mr. Pradeep Kapse, CEO, Eicher Engineering Components.

In his inaugural speech, Mr. Peter Karlsten appreciated the facility and expressed confidence in developing this unit as a good business partner of Volvo Powertrain Corporation.
The Dewas plant of Eicher Engineering was acquired by VE Commercial Vehicles Ltd. (VECV) on November 1, 2006. Since then, VECV has invested more than Rs. 50 crores in the plant’s expansion and technology upgradation. Today, the plant has the TS-16949 Quality Certification.

The plant is equipped with latest technology machines like CNC hobbing, shaping, heat treatment, furnace, out-diameter and inner-diameter grinding. It has a capacity to make one lakh gears a month. The plant also has crown wheel pinion manufacturing capabilities with world class heat treatment facilities.

The plant fully meets VECV’s captive consumption and also supplies to various OEMs in India and the US.

JVs and acquisitions to help Harita stay on top

Seats are probably the unsung heroes of any successful vehicle. Ever wondered as to who makes those comfortable seats in the luxurious buses you travel on?? In all probability, they are manufactured by Harita.

Harita Seating Systems specializes in manufacture & supply of seats for various types of vehicles. The company provides seating solutions to commercial vehicles, buses/coaches, agriculture tractors, construction machinery, two and three-wheelers, cars and multi-utility vehicles. The company has established leadership in the Indian market with years of experience in design, development and manufacture of these vehicle seats.

Starting off in 1986 as a joint venture between the TVS Family and Grammer AG of Germany. Harita Grammer had made big strides by developing state-of-the art seating systems to suit Indian road conditions. In two decades, pioneering work in R&D has been done, international quality standards have been established and true to TVS tradition, its customers have quickly grown to expect only world class, customized solutions, from Harita.

Harita Seating Systems Ltd. has three manufacturing locations in India. The headquarter is located at Hosur. It has established manufacturing facility at Ranjangaon (near Pune) to cater to the needs of customers in Western India. Another major unit is at Nalagarh (Himachal Pradesh) for its business improvement in the Northern area. In 2007-08 the company achieved turnover close to Rs. 200 crores.
In an interview to MOTORINDIA, Mr. Thiagarajan, President, Harita Seating Systems, said that the company is targeting a turnover of Rs. 500 crores in the next few years with the introduction of new products and would also be entering segments in which the company is not present now. To achieve this ambitious target the company has signed a few joint ventures, MoUs and made some acquisitions and has also entered into new product lines.

Acquisition of Polyflex

The next major development is the acquisition of Polyflex, a leading manufacturer of polyurethane cushions for seat manufacturers. This acquisition will give Harita an entry into passenger car segment through Tier-1 companies. Polyflex supplies polyurethane foam for seats to Tata Johnson, in Pune and Chennai, and Dymos India (formerly known as Hanil Lear) in Chennai, Lear in Nashik and Toyota Boshoku in Bangalore. It is a Tier-2 supplier to Tata Motors, Ford, Hyundai, Toyota and Mahindra-Renault. Polyflex has manufacturing plants in Bangalore, Chennai and Pune. Besides, it also has a fabrication unit called Polyflex Engineering in Bangalore.

Harita has acquired Polyflex plants in Bangalore and Chennai and the movable assets of Polyflex’s Pune plant. It is also taking over Polyflex Engineering. The plan is to integrate Polyflex under Harita Fehrer in the future, adds Mr. Thiagarajan. Harita hopes that this JV with Fehrer and the acquisition of Polyflex will provide the much needed entry into the passenger car seating business in which currently the company has very limited presence.

Joint venture with Fehrer

In 2008, Harita signed an MoU for a joint venture with F.S. Fehrer Automotive GmbH, a leading German manufacturer of seats and interior components. The joint venture Harita-Fehrer Ltd. will have Harita holding 51 per cent and Fehrer 49 per cent. The production program of the joint venture includes polyurethane moulded foam pads for seats and plastic components for the Indian automotive market as well as two-wheeler seats. For the near future, the partner companies plan to expand the capacities for the seat bolster production and extend the product portfolio by armrests and headrests for the Indian automotive market.

LFI moulded components

From seats, Harita is looking at a related diversification. The company has invested in the manufacture of new technology products like micro cellular urethane products and long fibre injection moulded components for automotive applications. These have been well received by customers and pilot supplies were effected, says Mr. Thiagarajan.

The first product which has been developed and commercialised under the LFI technology is the front hood for the new Same Deutz Fahr tractors which are being manufactured at Ranipet. The covers are made of fibre-reinforced PUR in a LFI process and are given a high-gloss surface finish in the mould. Harita is one of the world’s first PUR processor to use this technique in series production. The LFI process differs from other PUR processes in that the long glass reinforcing fibres are wetted with the PUR in the mixing head.

The company is talking to various OEMs and indentifying applications which will be ideally suited for using LFI technology. “Being a new technology, we expect longer lead time for the markets to evaluate and accept these products in a big way”, adds Mr. Thiagarajan.

Harita has invested Rs. 15 crores in setting up a very advanced facility for manufacturing these products. In its existing range, the company has upgraded driver seats for heavy commercial vehicles and construction equipment to meet the AIS 023 regulations of the Government and has already commenced supplies to OE customers successfully. Besides, the company also developed and productionised seat components for export markets and introduced variants of existing bus passenger seat models to meet customer requirements.
Harita has installed capacity to manufacture 3.5 million seats. It caters to all segments of the automotive industry. The company has a long list of OEMs to across all segments, including Tata Motors, Ashok Leyland in the commercial vehicle segment, TVS Motors, Yamaha and Royal Enfield in the two-wheeler segment, Reva and ICML in the passenger car segment, and TAFE, John Deere, Mahindra and Fiat CNH in the tractor segment. In the bus segment, the company is the most preferred supplier to Volvo, Tata Motors and Ashok Leyland and the recently launched Mercedes. Harita caters to 100 per cent of Volvo’s requirement in India.

All major State transport corporations like KSRTC, APSRTC, MTC and BMTC are customers of Harita. Most importantly, bus body builders like SMKannappa, Jaico and Veera extensively use Harita seats.

Recent years has also witnessed another phenomenon of public sector transport undertakings launching low floor city buses, upgradation of existing fleet and induction of high end buses for long distance travelling. Upgradation of urban bus fleet and introduction of deluxe/ultra deluxe buses by state transport corporations as well as high-end long distance buses by the private operators offers yet another scope for increase in volume of bus passenger and driver seats. This has helped the company with greater opportunities in the high end bus passenger segment.

With the JNNURM order for 15,000 new city buses and an additional 40,000 buses which will replace the over aged buses, Harita is looking forward to a significant share of business in the bus segment. Harita has supplied seats for the 655 low floor city buses supplied by Tata Motors to DTC.

Tractor seats is one of the important segment for Harita where the company enjoys a leadership position. The company is now focusing on export market and is committed to meet customer requirements in terms of quality, cost, delivery and service. Currently less than 10 per cent of the turnover comes from exports and the target is in the next 5 years exports would account for 20 per cent of the total turnover.

Harita is certified for TS 16949, ISO 14001, OHSAS 18001.The company has successfully adopted TQM practices across all its plants and has won many awards and accolades.

The year 2008-09 has been a busy year for Harita with JVs, acquisitions and entry into new product segments. All these initiatives will start paying back in the coming years making Harita the undisputed leader in automotive seatings.

Bosch EMS for Tata Nano

Tata Motors’ Nano which was launched on March 23 is the world’s cheapest car. In 2004, when Mr. Ratan Tata conceptualized the ‘People’s Car’, many thought it to be an impossible dream. But the Bosch Group decided to take up the challenge, and so began the journey of its association with the Tata Nano.

Building cars at low cost needs a paradigm shift in the way modern cars are engineered and puts emphasis on reinventing the way cars are built through innovative ideas. The Nano approach was to reinvent from the outset with the collaboration of more than 100 suppliers. Since conventional Bosch systems are designed for high-end vehicles, providing solution for a low-price vehicle was a challenging task for Bosch, which however was able to convey the message that it can provide technical and innovative support in developing the Nano.

The first concept engine for Nano was assembled in 2005 at Coimbatore. It was fitted with standard components of Bosch Gasoline Engine Management System. Despite several technical constraints, the engineering team from Bosch and Tata did the first test firing of the engine. In the same year, at the Tata Engineering Research Centre, the first prototype vehicle was fabricated with the calibrated engine. The initial two-cylinder engine developed by Tata was of 586cc. Subsequently the engine capacity was raised to 624cc to have optimized engine performance to cover other variants of the Nano.

Bosch developed a state-of-the-art gasoline engine management system (EMS) for the Nano Gasoline variant. The EMS consists of the electronic control unit, fuel injectors, sensors, ignition coil, tank vent valve and throttle body assembly. The software and the electronic control unit were developed to offer the best of both worlds, the optimized performance with a “VFM” tag.

In addition to the EMS, Bosch developed a tailor-made starter motor and generator for the Nano. The new starter motor was conceived with the combination of new optimized electrical layout and passenger car mechanical systems.

Bosch also developed the braking systems for the small car. The system consists of a tandem master cylinder (TMC) and four drum brakes. To keep the costs low the system was so configured that the conventional vacuum booster was avoided, and instead of calipers on the front wheel, cost effective drum brakes were used.

“The Nano is a breakthrough product, and Bosch is proud to be associated with it, with our breakthrough technologies like fuel injection systems, brakes and electricals. This will be a trend-setter in the new low price vehicle segment in the near future”, said Mr. V.K. Viswanathan, President, Bosch India.

Stage set to usher in new-age urban transport system: R.J. Shahaney

Ashok Leyland has had a long association with the TVS Group which is one of the earliest members of the Ashok Leyland dealer family, partnering it in Tamil Nadu, Karnataka and Kerala. Moreover, the TVS Group, largely based on British Leyland support at that time, has established its presence in the auto components sector, with some of the best known business organisations of the region.

Mr. Santhanam had the vision to go beyond manufacture and marketing, and was a pioneer in vehicle financing and insurance, and in the process, Ashok Leyland and his organizations had even more ways to add value to the customers. Today, it is well recognized that it is the tail wind of vehicle financing that leads to vehicle sales. Mr. Santhanam could foresee this and set up a vehicle financing company in as early as 1954. Similarly, the insurance business in India which is yet to enter a phase of growth commensurate with its potential, and the visionary thought of it many decades ago.

Mr. Santhanam practiced a simple, honest and straight forward brand of customer orientation which might not have had the frills and phrases of the business school teachings of today, but nonetheless effective. He embodied the celebrated values that the TVS Group has stood for since the time of running buses which became time keepers to the people of Madurai with their punctuality. In every way, he exuded what TVS has stood for: Trust, Value and Service. Clearly, his principled attitude of delivering maximum value to customer and seeking success through customer service begot trust.

One could discern a sharp business brain that recognized business opportunities in multiple modes of value addition that made the TVS Group a virtual one-stop shop for the customer. Business success followed. After all, he had an entrepreneurial outlook in his DNA, based on fair practices.

As a human being, his endearing quality was his simplicity. Continuing success only enhanced his humility. Very down to earth, he had his ear to the ground and , I recall, would call up Ashok Leyland’s marketing people at all levels and, with no discomfort on either side, to enquire about trends in the market, to detect the straws in the wind. Therefore, the basic simplicity of the man co-existed with and in fact aided his evolved view of issues.

Mr. Santhanam had a holistic view of business, customer and life itself. It was, therefore, natural that he had the mind space and the bandwidth to espouse many causes and interests. Many charitable organizations in the city and elsewhere have been beneficiaries of his munificence. In fact, the companies of the TVS Group have taken this tradition forward with great distinction.

Mr. Santhanam brought to bear on the industry he knew so well his unique insights to conceptualise many support systems that together aimed to create an efficient transport system. The transport system of a country is a good measure of the efficiency of its economic activity. Ahead of his times, he was an ardent advocate of investments in good roads and sought to realize his vision through quiet advocacy.

The similarities in the themes of his various addresses and the contemporary government policies in respect of roads and transport regulations could not have been all a coincidence. Given the role that the Indian Road Transport Development Association (IRTDA) has played in the evolution of this country’s surface transport sector, not surprisingly, Mr. Santhanam saw in the leadership of this organization a platform to extend his holistic plans for the sector.

It is so very appropriate that Mr. Santhanam, who dreamt of Chennai becoming the Detroit of this country, became the first Indian to be elected Chairman of IRTDA, South.

The Indian auto industry is in a phase of retardation, following six years of hectic growth. Cyclicality is integral to this industry. Learning from the past, the industry is coping with the current slowdown, knowing it to be temporary, by deferring and fine-tuning investments and by cutting costs and enhancing efficiencies. Periods such as this also offer opportunities for introspection and for taking stock, for corrective actions, so that when the upturn comes, it is ready to pick up speed.

While no one is willing to make definitive predictions of when the revival would happen, there is no denying the opportunities that open up for the Indian auto industry. India’s competitiveness is based on inherent entrepreneurial abilities, its human capital notable for skills and innovativeness, the India cost advantages and the relatively recent focus on attaining global quality levels.
Mr. Santhanam was quick to recognize this formula and it is no wonder that the TVS Group companies have dominated the Deming Award winners from India. Clearly, when global demand begins to return, cost competitive products will be at the vanguard. That is an opportunity for India and its auto industry, both the vehicle manufacturers and the auto component sector.

Already the Indian automotive industry, through impressive growth since India’s economic liberalization, accounts for direct and indirect employment to over 13 million people and contributes to 17% of indirect tax revenue. Vehicle production almost doubled in four years to over 11 million in 2006-07. Volumes since then have stagnated, but general consensus is that this slowdown is temporary and should in no way alter the direction of growth.

It is pertinent to remember that a country that is home to 1/6th of humanity still accounts for less than 2.5% of the world production of passenger and commercial vehicles. For an indication of the future volumes, trends in developed and developing countries, rather than India’s past statistics, would be a more valid base. That is because India has clearly entered a new trajectory of economic growth and is very close to the point of inflection for many products, based on per capita purchasing power and disposable income.

For instance, even after discounting the share of exports, China’s production volume of 17 million motor vehicles is a better indication of India’s potential than her own current annual volume of less than half that number.

In this context, the projections of the Union Ministry of Heavy Industries become credible. By 2015, Indian car volumes are slated to cross the 3-million mark and India’s share of world auto component trade has the potential to more than double, from the current 0.9%. The current slowdown may force a correction in the time lines, but the Government’s projections for 2016 forecast the country’s automotive sector revenue at $ 145 billion, accounting for 10% of India’s GDP, in the process creating 25 million incremental jobs. There is also the welcome multiplier effect in that, for every job created directly by the automotive industry, a further seven are created indirectly in the economy at large.

The growth in demand, based on population, economic activities and purchasing power, will be met by creating capacities through investments. But, how prepared are we as road users, as manufacturers and as a nation, to cope with such an explosion of wheels and motorists on our roads?

I want to share with you a few challenges as I see them, and I am fairly confident that Mr. Santhanam would have concurred.

Among the many challenges of this volume explosion, I would like to flag off just two that are internal to the business organizations. They are reaching global competitiveness and meeting the manpower challenges.

Competitiveness through innovation

With efficiency improvements in internal processes and rationalization of tax structure, China can manufacture a car at a cost 23% lower than in India – a significant portion of the handicap is on account of higher taxes in India and their domino effect. India’s ranking in global competitiveness surveys have been average, with Singapore and China scoring much better on attractiveness for manufacturing. Industry has to continue with its advocacy with the Government, for a level playing ground in terms of costs. There is also the unattended issue of labour reforms. Beyond that, organizations have the unfinished task of improving labour productivity.

The task does not end there. For a while, we have been riding on the relative cost advantage to enter hitherto untapped markets. However, the cost advantage can only be an entry strategy because it can be easily and quickly matched and surpassed. Continued success calls for more than mere cost efficiency. The power of ideas and innovation are what will help Indian powerhouses to realize their global ambitions. The success of the Japanese auto majors in capturing the American car market is a celebrated case study of winning markets through global competitiveness. What makes the difference can emerge from simple customer insight to a technological breakthrough.

A recent Indian example is the Nano, touted as the “world’s cheapest car”. The $2,000 car is not only a triumph of frugal engineering but a triumph of all that goes into creating a winner.

The task of innovation has to be tackled at two levels: at industry level, with the participation of the Government, for generic research; and at organizational level where concepts have to get concretized as products. A remarkable initiative has been the Core group of Automotive R&D (CAR) formed in the academia-industry collaboration format, headed by Dr R Chidambaram, Principal Scientific Advisor to the Government of India. The idea is to achieve breakthrough technologies that will ideally give India leadership position rather than having to catch up with the developed world. The CAR’s road map also takes into account the Indian context of medium-sized production volumes and its undesirable dependence on import of oil and gas.

The creation of the National Automotive Testing and R&D Infrastructure Project (NATRiP) has been a very significant initiative in the automotive sector that aims to create a state-of-the-art testing, validation, homologation and R&D infrastructure in the country and thereby create core global competencies and facilitate seamless integration of the Indian automotive industry with the world. The NATRiP ‘centres of excellence’, including the one in Chennai, provide for advanced research in emerging technologies and excellent proving grounds for new vehicles and the ideal platform to catapult India into the league of nations.

Nurturing human capital

The second task is the creation of a pipeline of human capital at different levels of skills and capabilities. When India becomes a global auto manufacturing hub, the steep rise in vehicle production will be accompanied by growth opportunities for auto component sector, boosted further by their participation in global business. Total export revenue of $25 billion by 2016 is realistic target. Similarly, given the favourable demographic profile of the country, design and engineering services along with back office operations hold great promise.

Obviously, it is imperative for the country to strengthen its most significant core competitive advantage namely skilled manpower. Going forward, this will be one of the imperatives for the sustained growth of this sector.

Ashok Leyland has also been playing a lead role in this area. The Ashok Leyland Bosch Center of Excellence with IIT Madras in 2006 offers a dual degree programme in Engineering Design and is the first of its kind in India. With a strong thrust on the modern practices of design, this programme gives students an exposure to real world problems in the industry that hastens their transition from academics to their eventual career avenues.

Another industry-academia interaction is the 2-year management programme that Ashok Leyland runs with the Suresh Mehta School of Management, IIT Mumbai which has already completed intense competency mapping over 2 years and have put in place a robust future leader development programme.

Some of the auto companies have joined hands with reputed colleges of engineering and technical education to offer career-oriented post-graduate courses in relevant specialized subjects, besides offering internship. Ashok Leyland has also joined hands with an array of reputed educational institutions to co-prepare and offer specialized courses that can give well-trained, industry-ready talent.

After-sales opportunities

The after-sales activities also open up huge employment opportunities. For most manufacturers, reaching service and parts to such a geographic spread becomes a very uphill task. At an industry level, CII has been alive to these limitations of OEMs and have therefore taken definitive steps in this regard. CII’s Skills Development Programme is a comprehensive one aimed to make India the skills capital of the world that trains operators – machinists, fitters, turners and the like – so as to endow them with the requisite skill sets to undertake service of vehicles on their own.

The memory of Mr. Santhanam deserves that we dwell on two more issues that will come to the fore when the anticipated volume explosion becomes a reality, because both were dear to him.

Coping with vehicle explosion

One obvious challenge is in respect of transport infrastructure and traffic environment involving roads of different descriptions, the many on-the-road facilities and law enforcement systems. The official projections point to a trebling of vehicle demand in ten years till 2016 – a proportionate increase in road infrastructure is fairly inconceivable, even if road construction regains speed in the new regime that will come to power at the centre. The accompanying problems will be felt differently, in intra-city and inter-city roads.

Already, traffic jams are a feature of our roads in the metros. At one level, there is no denying the aspirational meaning of personal transport, and undoubtedly it is human aspiration that powers national progress. The answer, to learn from the developed world, lies in creating an efficient and well-integrated multi-modal transport system. Bus transport will be an integral part of any intra-city transport system, especially given our socio-economic distribution.

The stage is set to usher in a new-age urban transport system with the vision for perfect integration between the various facets of traffic management, traffic infrastructure and transport systems to achieve ‘urban mobility’. Traffic management, apart from surface management, would involve traffic operation, mass transit operation, information collection and dissemination and ticketing. Information will make maximization of the benefits from the infrastructure possible.

Take the simple example of air-conditioned buses in cities, some of them thoughtfully linking airports and railway stations. People who have used them find them great value for money. Yet often these buses run empty, because no one knows the timetable!

We also need to focus on development of dedicated corridors, the linking of high-traffic points like airports, ports, railway stations and bus terminals. Transport systems of cities will be an orchestration of rail network, modern buses, depot scheduling and bay allocation, taxis on demand, customer-friendly, regulated autos and enhanced road safety systems.

What can make this orchestration possible is the introduction of infotronics to the transportation system. Ashok Leyland has been the standard bearer in this realm and is in the process of developing a suite of GPS-based products under the brand name ‘Alert’. The first product has been an On Board Unit that was introduced as a pilot project with the Metropolitan Transport Corporation (MTC). The Unit provided passenger information at both the bus depot and bus stop and opened a communication line between the driver and the control centre.

Tested to cover 18 months and over 12 million km, the project has now been extended to cover 600 more buses. It is easily scalable and can interface with vehicle systems to assess driver actions like excessive idling, over-speeding, over-revving, harsh acceleration and braking. What’s more, it is geared for future solutions like e-ticketing, in-bus announcement systems, online diagnostics of vehicles and CAN diagnostics (fuel consumption, km travelled, pressure and temperature).

The second dimension of the infrastructural task is in country-wide road connectivity. Substantial progress has been made on two banner projects – the Golden Quadrilateral and the North-South and East-West Corridors that cumulatively will cover over 13,000 km. While that will radically improve urban connectivity, bringing rural india into the network is a key and vital aspect. The 8th Plan linked 86% of the 1.3 lakh villages with a population of 1,000 to 1,500 with all-weather roads while the 9th Plan envisaged covering 85% of the 60,000 villages with a population of 1,500+ involving some 49,000 km and a further one lakh km in villages with less than 1,000 that would ensure coverage of 85% of such villages out of the total 4.6 lakh. Obviously, a lot has been done, but a lot is yet to be done.

India has made tremendous progress in road connectivity in the last one decade, both in terms of quality and length of roads laid. Road speeds have improved, allowing more efficient and modern vehicles, especially trucks and buses, to become economically viable. The growth in the popularity and population of the more efficient multi-axle vehicles, and later tractor trailers, bears testimony to this. India has demonstrated the role of quality roads in the modernization of a country’s automotive industry.

Yet, let us remember that roads are the bare hardware; what will create an efficient traffic environment are electronics based intelligent systems that can lead to cashless transactions that do away with time-consuming and often arbitrary human interfaces that make check posts centres of corruption.

A lot can be done with employment of technology to eliminate the pain points of vehicle owners and the helplessness of transport authorities, such as , the inspection and certification system, in the driving licence issue and monitoring. Facilities such as highway motels and trauma care centres will make cross-country travel even more enjoyable and safe.

Now about delivering value to the customer. A motorized vehicle has to deliver a set of values, including safety, ecology and economy. While market forces will lead to the success of products that make economic sense, all stakeholders in the auto industry have to collectively take on the moral – not just legal – responsibility for maximizing the total safety in the transport system and minimizing the ecological footprint of vehicles in manufacture and in use.

The Indian industry and industry associations have been quite alive and sensitive to these issues and have proactively mandated technological answers to these. However, automotive engineering alone cannot provide all the answers; use of enabling allied technologies and purposeful user education are part of a possible solution.

As consumers, we know how ineffective product manuals can be as tools of customer education. Business organizations have to see customer education as a means to better use of their products, thereby maximizing their value delivery, allowing them to live upto the product promise. Moreover, in the case of motorized vehicles, the manufacturers have a much greater responsibility, because they are not domestic appliances but potent machines used in public places, on roads that are shared by all.

At a time when we often read about road rage leading to loss of life, the need for customer awareness and education to change the mental makeup cannot be over-emphasized. We have of course successfully changed driver behavior in our driver training centres. Our customers vouchsafe for two major changes in their drivers after training. Thanks to training, correct driving techniques become second nature leading to 5% or more in fuel savings and a marked improvement in their safety record.

Recently, our driver training centre at Namakkal reached a milestone of 200,000 trainees. This good work is now being replicated at the Delhi centre run jointly with the Delhi Government. The company is in talks with more State Governments who have shown interest. Scientific training of drivers is a significant task in managing the future vehicle volumes, prompting the Government to plan one or two full-fledged driver training schools in every State.

The implementation of VAT and improvements in road connectivity have contributed immensely to making India one unified market where efficient centres of production and value addition get their due share in the value chain, wherein distances have become less important and efficiency the deciding factor. When the world emerges from the current recession and economic rationale gives way to protectionism, global economic activity will get stacked up on the primary axis of efficiency and cost competitiveness. That will be India’s opportunity to claim its legitimate share, in the process building its auto industry on the foundations of enterprise, people skills and best practices.

When this collective dream is realized, the nation will remember with gratitude, the pioneers, the visionaries, the leaders of succeeding generations. The late Santhanam is one of those great men whose contribution will always be remembered.