Volvo-Eicher JV’s new corporate identity

VE Commercial Vehicles Ltd. (VECV), a joint venture between the Volvo Group and Eicher Motors Ltd. (EML), recently launched its new corporate identity by unveiling the company logo. The reason for having a separate identity for VECV is to distinguish it from the parent companies.

The blue and red lines in the logo, represented by the individual Volvo and Eicher colours, run parallel to each other. This indicates the coming together of the two companies. Along with the white space between these lines, the symbol creates a graphic that is relevant to VECV as a commercial vehicle manufacturer.

VE Commercial Vehicles, operational since July 2008, owes its inception to the compelling intent of driving modernization in commercial transportation, in India and other developing markets.

As a 50-50 joint venture between the Volvo Group (Volvo) and Eicher Motors Ltd. (EML), VECV includes the complete range of Eicher’s commercial vehicles, components and engineering design businesses as well as the sales and distribution of Volvo trucks. Thus, each of its business units is already well established and backed by a sizable customer base.

Headquartered in New Delhi, VECV’s portfolio of commercial vehicles includes two product brands with absolutely different market positions, yet complementing segment synergies. Eicher trucks & buses have a wide offering in the mass market, 5T-40T range, while Volvo trucks have a strong presence in the premium, high-performance, heavy-duty segments. With a formidable presence in the existing light and medium-duty segments, VECV’s main focus is on increasing the penetration and market share of its heavy-duty products. Thus, its investments in design, development, manufacturing, systems, distribution and services are largely oriented towards creating a stronger position in the heavy-duty market.

The joint venture is now gearing itself for becoming a proactive solutions and service provider meeting all customer needs. This it will do by strengthening each of its product brands as leaders in their respective segments. Soon it will offer an even more innovative line-up of technologically advanced and ergonomically aesthetic products.

Volvo’s widespread distribution network will facilitate export of these products to countries the world over and will help VECV bolster its presence in nearly 30 countries to where it currently exports. With an improved thrust on retail network development and aftersales service, VECV will soon come to be recognized as a lean organization capable of setting new benchmarks in response times.

Visiontek vehicle tracking device

Visiontek has launched an in-house designed high-performance GPS/GPRS vehicle tracking device that can track /monitor the vehicle status in real time environment. It is available in two different models – 84VT and 86VT.

The device has the capability of operating in wide input voltage range (9V to 30V DC) and is quite easy to install. With built-in GSM and GPS modules, powerful external combo antenna LPC 2106 micro controller, the device is of rugged construction and is capable of withstanding high temperature and tough operating conditions. Visiontek 86VT comes with built-in battery and ignition on/off sensor.

Compact in size, the device comes with features like RS-232 compatibility, two-way voice and SMS communication, emergency calls through SOS switches for smooth operation, built-in battery, ignition status sensor, static navigation, online/offline tracking, remote configuration, wide operating voltage range and light weight.

Vehicle tracking devices are found very useful for fleet tracking, travels, ambulances, call centers, hospitals, public & private transports, etc. These devices provide key advantages like on-line monitoring of vehicles, reducing running overheads and increasing profitability, improving the efficiency of vehicle-based commercial operations, assisting organizations in managing their mobile clients, eliminating the time-consuming task of manually completing mileage logs by trying to track down missing data or verify hand-written information, help to manage fuel consumption, velocity and vehicle positioning, and also helping to improve on-time performance.

For details, contact: Linkwell Telesystems Private Ltd., Gowra Klassic, 1-11-252/1/A, Begumpet, Hyderabad - 500 016. E-mail: info@visiontek.co.in URL: www.visiontek.co.in

BIC Logistics ties up with Toll Global

BIC Logistics Ventures is in the transportation business since 1947. Started in Delhi, the company founder, Swaran Singh Bhandari’s hardwork, commitment and customer goodwill literally took him to places. His son, Mr. Naveen Pal Singh Bhandari, joined the family business in 1977. With his innovative approach, he came to the South and established the company’s first branch in Bangalore in the same year. In 1981, the company reached the shores of Chennai when Mr. NS Sankar, a professional, joined the group. Thereafter, there was no looking back.

BIC Logistics has by now grown by leaps and bounds and has become the preferred logistics partner of big brands like Ashok Leyland, TI Group, TVS Group, Rane, Simpsons, Maruti Udyog, Tata Motors, Kone Elevators and others. Currently, it has big national presence with 47 branches. With more than 110 trucks and 750 employees, it has a turnover of Rs. 120 crores.

The company is now headed by Mr. Naveen Pal Singh Bhandari, Chairman, Mr. Chandandeep Bhandari, Vice Chairman, and Mr. NS Sankar, Managing Director.

The joint venture between BIC Logistics Ventures and Toll Global Logistics, Australia, is the next step for the company to become a multinational, making its presence felt internationally. The equity ratio between the partners is 60:40.

The joint venture was launched in Chennai on June 1 in the presence of senior officials of the corporate sector whom BIC Logistics has been serving for the past two decades. Mr. Naveen Pal Singh Bhandari and Mr. Leith Wayne Hunt, President & CEO of Toll Global Logistics, addressed the customer and press meets held on the occasion.

This joint venture marks the commencement of further investment from both the partners for establishing multi-modal transport services, warehousing and other related logistics services, including transportation, under one umbrella. While Toll Global Logistics will supply BIC Logistics Ventures its technology in software, the latter will offer its expertise in the management of trucks under Indian conditions.

This JV will facilitate expansion not only in the domestic but also international cargo movement, innovative packing methods using trays, pallets and recyclable cartons at a competitive rate, modern warehousing facility with latest material handling equipment, expansion from the existing cargo movement through passenger trains to Delhi and various other metro cities and industrial towns, and introduction of special LCVs from point to point for speedy and safe movement of materials.

Volvo Trucks opens dealership in Goa

Increased demand for its trucks with their growing application in iron ore mining prompted Volvo Trucks to open its exclusive dealership in Goa, Svenska Technologies Private Ltd.

Inaugurating the dealership, Mr. Somnath Bhattacharjee, President, Volvo Trucks India, said: “The iron and coal mining industry is the key growth driver for Volvo Trucks in India because our products are high on performance and lifetime profitability together with customized aftermarket support. Therefore, in the domestic market our products enjoy a 70% market share in the premium European truck segment. Goa became our strategic priority for a new dealership considering the growing Volvo Truck population and future potential. High-value products demand high involvement for meeting customer expectations, and we expect the new dealership to work on strengthening our existing customer relationships by providing prompt and effective service for delivering the uptime and customer satisfaction.”

According to him, Volvo Trucks’ comprehensive on-site support, service and maintenance program ensures 90 per cent parts availability for those machines that work as many as 20 hours a day in opencast mines, delivering the best-in-class uptime. This delivery model has created a large, satisfied customer base and, therefore, 70 per cent of the company sales come from repeat purchases.
Expressing delight over the dealership association with Volvo Trucks, Mr. Mangesh Vaidya, CEO, Svenska Technologies, said: “We see a true partnership in Volvo. Our business focus will dwell on customer care and developing relevant competencies so as to sustain profitability at all times.”

Volvo Trucks India is a business area of VE Commercial Vehicles Ltd., a joint venture of the Volvo Group and Eicher Motors. Its product range includes the FM range of tippers and rigid trucks for special applications and the FM/FH range of tractors in different configurations.

Svenska Technologies, incorporated in March 2000, has been associated with Volvo Trucks as Volvo Sales Associates (VSA) since 2002. It has 12 offices across the country and an employee strength of almost 500. With its head office at Thane, it has dealerships in Maharashtra, Chhattisgarh and Goa.

Euro India Transportation Systems during Nov. 17-19

The first Euro India Transportation Systems (EITS) trade show, to be held at Metz, in eastern France, during November 17-19, will bring together 1,500 representatives from Indian and European companies across sectors like automotive, aerospace, rail, truck/bus, shipbuilding, and transport & logistics. There will be pre-arranged individual B-to-B business meetings between Indian and European companies, as well as a wide-ranging programme of 40 conferences.

EITS is aimed at directors and decision-makers from both large and small or medium-sized companies who want to initiate a qualitative, targeted development of their business in the Indian or European markets. EITS will offer an excellent forum for Indian and European companies to meet players in the transport industry from the two continents in order to develop enduring industrial partnerships.

In the context of rapidly increasing trade between Europe and India, the transport sector represents a market with considerable potential for development. In the automotive sector, which is currently experiencing some difficulty given the economic outlook, there is still immense potential for closer co-operation between India and Europe. Taken together, the countries of Europe are still the world’s largest car producer. For its part, the Indian Government has set an objective of 80 vehicles per 1,000 inhabitants as compared with the current eight vehicles, with an anticipated annual growth rate of 20 per cent.

In the aerospace sector, modernisation of airport infrastructures and the increase in air traffic, both cargo and commercial, look set to generate business opportunities estimated at Euro 30 billion over the next 10 years.

The bilateral trade flows between India and Europe are expected to reach Euro 70.7 billion in 2010 and Euro 160.6 billion in 2015. India has a dynamic economy currently enjoying a 6.7 per cent growth rate despite the economic crisis. It has the 12th highest GDP in the world, as per the figures released by the IMF and the World Bank.

EITS will provide opportunities for companies in the European and Indian transport industries wishing to initiate enduring industrial exchanges and develop partnership agreements. It targets complementary industrial networks for which the development of transport reflects clearly identified offers and requirements in Europe and India: engineering and R&D, materials, plastics technologies, composites and polymers, metalwork, mechanics, microtechnology and nanotechnology, technical textiles, on-board electronics, electricity, metrology, satellite navigation, industrial IT, motorisation systems and energy.

EITS is organised by the Moselle Développement, an economic development agency, with support from the PROXIMUM Group, an organiser of B-to-B events, and the Council of the Moselle Département. There will be 5,000 pre-arranged individual business meetings, with the participation of 300 Indian and 1,200 European companies.

The Département of Moselle lies at the heart of the Saar-Lorraine-Luxembourg trans-border region. The Moselle Council aims to make its département the ‘gateway to Europe for India’ by helping to establish networks of enduring industrial relations between India and Europe.

Special package for exhibitors

The organisers of EITS are taking a special delegation of Indian exhibitors to attend the show at an all inclusive rate of Rs. 1 lakh per person. This cost includes air travel, accommodation for three days and stall space at the expo for exhibiting the products and services. This special offer is available for the first 300 applicants only.

For details, access: www.eits-event.com

Tata Motors launches the world truck range

Just a couple of months back, Tata Motors launched the world’s cheapest and smallest car, the Nano, and now comes the big daddy of Indian trucks, the Tata World Truck. It just goes to prove once again the versatility and the competence of the company to simultaneously develop products in completely different vehicle segments. The World Truck was launched by Mr. Ratan N. Tata, Chairman, Tata Motors, at a spectacular event held recently in Mumbai.

The World Truck is not just a single truck but a range of trucks covering multi-axle trucks, tractor-trailers, tippers, mixers, and special application vehicles. Tata Motors has invested over Rs. 1,000 crore in developing the world truck and will manufacture it in India at Jamshedpur where it has established a state-of-the-art facility, and also in Dusan in Korea. The product has been jointly developed by Tata Motors and its two subsidiaries, Tata Daewoo Commercial Vehicle Company in South Korea and the Tata Motors European Technical Centre plc in the UK. The company has harnessed the best of inputs and technologies – in styling, engines, transmission, suspension, chassis frames, fabrication and dies – from partners based in countries like Italy, Germany, Sweden, the US, Japan and South Korea.
Mr. Ratan Tata said: “The developing infrastructure in India makes it possible for transporters to reap the benefit of trucks with higher power, speed and carrying capacity. The new range from Tata Motors will meet those needs. It will also help us penetrate international markets more effectively and competitively.”

The new plant set up in Jamshedpur for the World Truck can produce 55,000 units initially and can be expanded to 1.5 lakh units based on the market demand. The company expects international volumes to be at par with numbers in India. The range comprises multi-axle trucks, tractor-trailers, tippers, mixers, and special application vehicles. Besides India, they will also gradually be introduced in South Korea, South Africa, the SAARC countries and the Middle East.

The Managing Director of Tata Motors, Mr. Ravi Kant said: “The range is an output of collaboration across the Tata Motors family, supplemented by inputs from partners across the world. This approach has enabled us to harness appropriate expertise and develop relevant products faster than ever before.”
For the next couple of months, Tata Motors will seed the market with a few of these trucks by giving it to some key customers. “The trucks will be available in the domestic market in the second quarter of this fiscal,” said Tata Motors Executive Director-Commercial Vehicles, Mr. P. M. Telang.

The company, however, would start exporting these trucks only by the end of the current financial year. “We expect to start export from the end of this fiscal. Initially, we will be exporting to countries such as South Africa, the Middle East, Russia and Turkey,” he added.

But why a world truck? ask Mr. R. Ramakrishnan (Ramki, as he is known to many in the industry), Head of Sales and Marketing - Medium and Heavy Commercial Vehicles, Tata Motors, and he says, the whole idea of making a World Truck started a decade ago, in 2000, when Tata Motors announced the worst results in its corporate history, a loss of Rs. 560 crores. “This is when we started looking inwards introspecting and understanding as to where we went wrong. What should we do to ensure that this performance doesn’t repeat ever in the history of Tata Motors. While we took some immediate steps to improve quality, reduce cost and focus more on our customers, a group of us started looking at what we should do in the long term”.

He said: “Looking at our product strategy, the market growth and the products we were offering then, we decided to look beyond the Indian shores and looked at the world as a canvas and thats when we came up with the idea of developing a truck which will be for the global market. The mission was to clearly modernize road transportation in India and effectively compete with global players who had entered or announced plans to enter the Indian market and also to extend Tata’s global footprint by competing with these global brands not just in India but even in other markets.
“We then set a goal to retain our market leadership, which is close to 70% in the medium and heavy commercial vehicle space in India, and also increase our international presence. With markets developing in different part of the world, competition was intensifying and India, which was lagging behind compared to countries like Brazil and China, started on the growth process with the ambitious plans to build roads across India. Customer awareness also increased about the availability of technology and products and competition in their sphere was also intensifying and they were faced with the challenge of running their operations more effectively and therefore more profitability”, Ramki added.

According to him, as the road and other supportive infrastructure in India is increasing, to meet changed requirement of operating economics parameters, the need for vehicles with higher power to weight ratio is expected to go up. Tata Motors made an analysis of horse power per tonne of carrying capacity (power to weight ratio) in developed countries like the UK, the US, Japan and developing economies like China and Brazil. It showed that as we move towards the heavier range the gap widens, which means the truck plying in the country today are grossly under powered as compared to trucks in other countries.

Tata Motors has also taken into account the requirement of customers in various markets and put all these inputs together in developing a range of trucks which are reliable and durable fuel-efficient trucks that are “ready-to-use” – providing the lowest life-cycle cost.
The World Truck range covers all the applications in the heavy and medium duty truck segment from 10 ton to 49 ton GVW/GCW. It addresses the needs of individual operators, fleet operators, mining / construction contractors, institutional buyers in all chosen markets. The World Truck will cater to a number of applications which might be in small volumes individually but together, it can contribute to significant numbers.

Tata Motors has worked with many global companies in developing the World Truck. Engines from the US and Europe, Cabin has been styled in Italy, the chassis frame from Mexico and gear box from the US and Europe.
Aggregates

The entire range is having a new modular design cabin and chassis with high powered Euro-3 and Euro-4 engines. It also offers the features compatible in global markets with performance characteristics matching world benchmarks. The powertrain option stretches from 150 PS to 560 PS, with suitable engines, transmissions and axles of different makes. Additional features on offer include automated transmissions and air suspension.

The World Truck will offer a combination of Cummins ISBE and ISLE engines and Iveco Cursor 9 engines. Initially the company is launching the 280 and 380 hp range of trucks and progressively will introduce higher horsepower engines as per the market requirement.

What’s interesting is the introduction of Iveco engines in the high end tractor trailer models. In gearbox again, Tata Motors is offering two options – ZF and Eaton. It’s clearly an integration of aggregates to develop a truly world truck. “We are design ready with over 200 combinations and potentially can create over 1000+ combinations. Every truck will have Global Positioning System for effective vehicle tracking as standard fitment”, added Ramki.
The range offers a higher power-to-weight ratio translating into faster turnaround time, better reliability and durability, and resulting in higher revenue generation for the transporter than is the norm now. The versatility of the range meets several needs: tractor-trailers and multi-axle trucks for long distance transportation, rigid trucks for short-distance distribution, tippers, mixers, cranes for construction and mining, special applications like reefers, bulkers, and tip-trailers. The capacity of the trucks can be from 10 tonnes to 75 tonnes gross combination weight (GCW), to meet a wide mix of usages.

Comfortable cabin options

The spacious air-conditioned cabs come in three different lengths (day, rest and sleeper), three different heights (flat, low-dome and high-dome roof) and in two different widths. While there are two trim levels, features include reclining seats, adjustable steering wheel, seat belts and arm rests (for both the driver and co-driver) for driver comfort and safety. These features are designed to induce longer and more trips and safer driving.
In terms of speed, all vehicles, except the tipper, can hit and hold 100 kmph on the highway. This means if in a conventional truck you cover 350 kms, on the World Truck you can easily cover over 750 to 800 kms. This is double the distance covered which means, the time taken will come down by half, faster delivery, better productivity, higher carrying capacity resulting in lesser trucks on road and lesser pollution as well.

The truck has been designed to meet the highest safety standards. The truck meets the Swedish norms which is possibly the stringent safety norms across the globe. The truck meets present and upcoming safety norms as per AIS 029. The product has been tested extensively on road covering over 1 million kms and also in the virtual environment in the 4 post and 19 post test rings for over a million kms.

Tata Motors has developed a truly World Class Truck. The truck looks stunning and breath-taking. A lot depends on the performance of the product on road and how well these trucks serve the transportation needs in India. But what Tata has launched today clearly is the product for the future. The company has announced to the world that it is ready with trucks which are made not only for India but for many other global markets as well.

What amazes me is the way the company has gone about developing and strengthening its commercial vehicle business. The company has done well in the bus segment, both city and intercity, thanks to the JV with Marcopolo and the acquisition of Hispano.

In the truck segment, the acquisition of Daewoo’s truck business in 2004 has helped in getting a better understanding of the requirements of the global truck market. This is possibly the first step in its long journey of becoming a global leader in the commercial vehicle segment. The World Truck will surely make the global industry stand up and take a more closer look at Tata Motors.

The journey so far...

It has been a very long journey for Tata Motors. Set up to manufacture locomotives and other engineering products, Tata Engineering and Locomotive Co. Ltd. (Telco as it was known earlier) started its journey way back in 1945.

By keeping customer needs in focus, Tata Motors has scripted an automobile revolution that has secured triumph for the company and recognition for the country. Over 40 lakh Tata vehicles ply on Indian roads since the first one rolled out in 1954. Today seven out of every 10 trucks on Indian roads sport the trusted Tata name. The company has been at the forefront of a movement that has set a whole nation on the move.

The seeds of this success were sown when Telco entered into a technical and financial collaboration with Daimler-Benz AG (now DaimlerChrysler) to launch the Tata Mercedes Benz. This was the first acquaintance that Indians had with an Indian vehicle manufacturing company. The collaboration with Daimler-Benz AG ended in 1969, but Telco had by then built up enough steam to power forward on its own.

Until June 5, 1969, the trucks bore the Mercedes “star” after which it was replaced by the Tata “T”. The roadmap for the future was laid out by JRD Tata and Sumant Moolgaokar who, sensing a boom in the automobile industry, decided to set up a second factory in Pune. The rest, as they say, is history.

During June 1969-December 1976, Telco gave the market as many Tata vehicles as the Tata Mercedes-Benz vehicles produced in the earlier 14 years. Over the next 40 years, the brand that epitomised movement and progress in this country itself embarked on a journey of evolution and learning. Imbued with the pioneering spirit and driven by the pursuit of automotive excellence, Tata Motors forged a reputation that made it India’s largest and one of the world’s top five automobile manufacturing companies.

From 1986 with the Indian automobile scene witnessing a radical change, Telco’s R&D came up with the 407 series – the truck (a light commercial vehicle), designed in-house, was created for Indian conditions, not modified to suit Indian conditions as others were. Approximately 32 applications for LCV manufacture had been approved by the Government, and most with foreign collaboration. To this, Telco’s R&D had a savvy market answer – the 407 specifically created for Indian roads and quick to become the market favourite.

Along the way, Tata Motors introduced a range of products and made additions and improvements to a host of others. The appreciation that these launches and improvements were met with validated the company’s focus on customer satisfaction. Often the fame and goodwill transcended mere geographical boundaries.

Tata Motors aimed to increase its presence worldwide. In 2004, it acquired Daewoo Commercial Vehicle Company of South Korea. The main reason behind the acquisition was the companys plan to reduce domestic exposure.

On its journey to make an international foot print, it also made significant acquisitions and joint ventures to improve its bus business. In 2005, sensing the huge opportunity in the fully-built bus segment, Tata Motors acquired 21 per cent stake in Hispano Carrocera and introduced its high-end inter-city buses in the country. It has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global leader, in bus body building, for city and midi buses. All these initiatives have already started showing the desired results.

With the launch of World Truck, Tata Motors is making an entry into the territory which has been hitherto dominated by the Daimlers, Volvos and the Man. The success of the World Truck will be a key factor which would decide the company’s aspirations of becoming a global commercial vehicle manufacturer.

Sundaram Finance improves market share in key areas

Sundaram Finance Ltd. (SFL) has reported a net profit of Rs. 150.73 crores for the year ended March 31, 2009. The net profit figures for 2008-09 and 2007-08 are not comparable as the profit relating to the latter period included a one-time profit of Rs. 76.82 crores on account of the sale of shares in Sundaram Home Finance Ltd.

Income from operations crossed Rs. 1,000 crores during the year and stood at Rs. 1,083 crores as on March 31, 2009. Disbursements for the year stood at Rs. 4,540 crores. Capital adequacy at 14.65 per cent was well above the statutory requirement of 12 per cent. Net NPA stood at 0.75 per cent as against 0.49 per cent in the previous year.

Net profit for 2008-09 was Rs. 150.73 crores as against Rs. 135.73 crores (excluding the one time profit of Rs. 76.82 crores) for the year ended March 31, 2008, an increase of 11.06 per cent.

The Board has recommended a final dividend of 25 per cent for the year. The final dividend, along with the interim of 40 per cent, takes the total dividend for 2008-09 to 65 per cent.

SFL opened 24 new branches during the year taking the branch network to over 450.

Commenting on the company’s performance in 2008-09, Mr. T.T. Srinivasaraghavan, Managing Director, said: “It has been a difficult year for the global economy, which in turn has had a significant impact on the Indian economy, especially the auto sector. Our philosophy over the years has been ‘Growth with Quality’. What is heartening is that we have improved our market share in all key areas of our business, and our asset quality remains the best in the industry, as evidenced by the numbers.”

Looking ahead to 2009-10, Mr. Srinivasaraghavan observed: “The outlook for the year remains muted, and we don’t see any significant change in the market scenario for at least another 3-6 months. We have to wait for policy directions from the Government which will hopefully emerge when the Budget is presented. Our hope is that things will start improving from the third quarter of this year.”

Set up in 1954, the Sundaram Finance Group’s services include financing for the entire range of commercial vehicles, passenger cars and construction equipment, as well as specially designed working capital products such as fuel and tyre finance, home loans, mutual funds, non-life insurance, IT, BPO, logistics solutions and distribution of a wide range of financial products and services.

The company employing over 4,000 people is regarded as one of the most trusted financial services providers in the country.

MEN AT THE HELM

Mr. Prakash M. Telang, Executive Director of Tata Motors responsible for its Commercial Vehicles Business Unit, has been promoted as Managing Director - India operations. He succeeds Mr. Ravi Kant who retires as Managing Director on his attaining 65 years of age but is retained as non-Executive Vice-Chairman of the company.

Mr. Telang has anchored Tata Motors through its roughest patch and has been the architect of the company’s cost reduction drive. By championing the use of e-procurement and other innovative approaches, he has played a vital role in initiating a complete makeover in the company’s operations and leveraging domestic and international growth opportunities. He has led the team for many prestigious offerings under the Tata brand, including the mini-truck, Ace.

TATA WORLD TRUCK

Exclusive pictures

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.

JCB opens world’s largest backhoe plant

Excavator-backed growth aimed

JCB India recently inaugurated the company’s newly extended $60 million (Rs. 300 crores) backhoe loader factory in India. The new facility is possibly the largest such facility of its kind anywhere else in the world.

The newly extended facility was inaugurated by JCB Chairman Sir Anthony Bamford. The factory in Ballabgarh, Faridabad, has undergone the huge expansion which has doubled its capacity and enabled JCB to produce 100 backhoes a day in India.
Sir Anthony said: “When this factory first opened here in 1979 it was a small, low volume manufacturing facility. Today it is the largest backhoe loader factory in the world, an achievement which fills me with immense pride.”

And he signalled that JCB would go from strength to strength in India, driven not only by growth in backhoe sales but also growth in sales of heavy excavators which the company began manufacturing in India in 2007. The new JCB Heavy Products factory in Pune produces the JS80, JS140, JS200 and JS210 tracked excavators alongside wheeled loaders and compaction equipment, all of which were on display at the opening ceremony in Ballabgarh.

Sir Anthony added: “Our factories in India are among the best in the world and the products they make are second-to-none. I look forward to seeing the backhoe and the heavy excavator shaping the landscape of India for the next 30 years and beyond.”

JCB in India is a fully-owned subsidiary of JC Bamford Excavators Ltd., UK, one of the prominent players in the construction equipment industry and amongst the three largest players in the world, producing over 270 different models, which are sold in over 150 countries. JCB has three manufacturing plants in India; one in Ballabgarh and two plants in Pune. The manufacturing facilities at Pune comprises of two plants. Plant-1, is a component manufacturing plant and is export-oriented. It caters to the needs of JCB factories both in India and abroad.

Plant-II is a heavy line manufacturing plant that produces excavators, wheel loading shovels and vibratory compactors. JCB India therefore offers a diverse range of unmatched backhoe loaders. Wheeled loaders, excavators, skid steer loaders, telehandlers and compactors.

JCB India Ltd. started operations in 1979 as a joint venture company. In 2003 JCB UK acquired 100% shares in the joint venture and today JCB is the fastest growing company in the Indian earthmoving and construction equipment industry. The company is a pioneer in the industry and has been recording excellent growth rates. It has ambitious development and expansion plans through launching revolutionary products and adherence to world class JCB corporate identity norms. Today in India, JCB has a park of over 80,000 machines and out of every two construction equipments sold in India one is a JCB product.

The JCB Chief Executive Officer, Mr. Matthew Taylor also joined Sir Anthony at the ceremony to mark the official opening of the new backhoe loader factory.

Mr. Matthew Taylor said: “What happened here 30 years ago was a first in so many different ways. This factory was the first JCB factory to be built outside Britain. When the first machine was made here, it was in fact the first backhoe loader ever to be made on Indian soil.

The JCB backhoe remains the first in its field – the number one backhoe loader in India, from India’s number one manufacturer of construction equipment – the number one in the world, with every one in three sold anywhere in the world today coming from a JCB factory.

“The backhoe loader will continue to be our flagship product in India. However, we expect heavy excavators to increasingly define our future in India as the country continues to develop and needs larger equipment to do so. JCB’s $75 million investment in its Pune plants positions us very well to take advantage of the growing demand for excavators, wheel loaders and compactors.”

The existing backhoe plant area was 24,000 sq m (258,240 sq ft) but now totals 33,574 sq m (361,256 sq ft) including assembly line, paint shop, fabrication, transmission, logistics, utility, pre-delivery inspection and hot test area. Also present at the opening event were customers, senior government officials, suppliers, dealers and important dignitaries, including the British High Commissioner to India, Sir Richard Stagg KCMG, CMG along with senior management of JCB India headed by Mr. Vipin Sondhi, Managing Director & CEO, JCB India Ltd.
Mr. Vipin Sondhi said: “JCB holds a leading position in India and one in every two items of construction equipment manufactured here is a JCB. We have sold over 80,000 machines here since 1979, which is an outstanding achievement. JCB India is now positioned as a world-class manufacturing hub, not only for India, but other regions across Asia. We are sure that the recent investment in new capacity in Ballabgarh and Pune will enable JCB India to rise to the ever-present challenges of infrastructure development and the new opportunities that economic recovery will bring.”

JCB is the pioneer in this field and has been recording excellent growth rates. From 9 dealers and 12 outlets in 1987 to 48 dealers and over 320 outlets in 2009 throughout the country along with a world-class customer service network support, JCB has come a long way. JCB India has got a wide range that includes backhoe loaders, wheel loaders, tracked excavators, telehandlers, vibratory compactors and skid steers. JCB also has a factory in Pune for the manufacture of fabrications and the company is the fastest growing company in the Indian earthmoving and construction equipment industry.

Hero group pulls out of Daimler-Hero JV

Daimler AG and Hero Group together announced to dissolve the Daimler Hero Commercial Vehicles Ltd. joint venture in India. The completion of this transaction depends on the regular closing conditions.

Daimler Trucks to own 100% of commercial vehicles project in India

The economic situation and the continuing weakness in demand in India have necessitated a repositioning of Daimler Trucks' partnership with the Hero Group in India. In the future, the Hero Group will focus on its core business operations and return its 40 percent stake in the two partners' joint venture, Daimler Hero Commercial Vehicles Ltd., to Daimler Trucks.

"I really regret the Hero Group's decision, but Daimler Trucks will nonetheless enter the truck volume market in India.” said Andreas Renschler, the Daimler AG Board of Management member responsible for Daimler Trucks and Daimler Buses. “Nothing has changed regarding our plans to manufacture trucks in Chennai. I’m counting on continued good relations with the Hero Group, whose expertise regarding the Indian market is very important for us.

Said Sunil Kant Munjal, Chairman, Hero Corporate Service Limited.: "In light of the current economic downturn, declining market conditions and the Group’s strength, Hero Group has decided to maintain its focus and continue to grow its core business and not to pursue the commercial vehicles business at this time."He added that, "the decision is a result of amicable and mutual decisions between the partners and we shall continue to explore doing business together in the future."

Daimler Trucks' total investment in India will amount to more than €700 million over the next four years. The equity capital invested by Daimler so far, which amounts to €24 million, has already been injected as direct foreign investment.

Daimler to continue with its commercial vehicle engagement in India

The Indian market is clearly defined for Daimler Trucks as a promising market future.
Growth in the commercial vehicle segment will focus on the developing countries and emerging markets, especially the BRIC countries.

"The current economic situation does not change Daimler Trucks' long-term strategy regarding the BRIC markets. A crucial aspect of Daimler Trucks' involvement is the market's strategic significance for our growth in Asia. For Daimler Trucks, India is more than just a market; it's the key to a completely new generation of products," Renschler continued.

"However, we have to realize that the economic crisis does not pass India without any impact. But this gives us more time since Daimler Trucks will not position trucks in an economic downturn. But nevertheless, nothing changes in our plans in India", Renschler said.

After the acquisition of the Hero shares the company will be renamed. The new company will initially produce light, medium, and heavy-duty commercial vehicles for the Indian volume market. Production of trucks for export to other emerging regions will be launched at a later date. A new production plant is already under construction in Chennai for this purpose.

Daimler Manager Marc Llistosella remains CEO

Marc Llistosella will be responsible for the new production plant in Chennai. Approximately 280 employees are already working there. "I also regret the disengagement of our partner Hero, but I am very confident that we will continue to forge ahead with our entry into the Indian market rapidly and successfully," said Marc Llistosella, CEO of the previous joint venture.

Ashok Leyland develops hythane engines

Ashok Leyland has successfully developed, in association with Eden Energy of Australia, a 6-cylinder, 6-litre 92 kW BS-4 engine for operation with hythane. Hythane is a blend of natural gas and hydrogen (usually 20 per cent hydrogen by volume). Addition of hydrogen, a renewable fuel, improves efficiency while retaining the low emission characteristics of CNG.

Concurrently, a 4-cylinder 4-litre 63 KW engine is being developed for H-CNG blend in a joint R&D programme with the Ministry of New and Renewable Energy (MNRE) and the Indian Oil Corporation.

Application of these engines to buses is at an advanced stage at Ashok Leyland, which is also in discussion with Government agencies regarding making hythane available for commercial use in the future.

It may be recalled that Ashok Leyland pioneered the use of CNG fuel for mass transportation in the country by rolling out India’s first CNG bus in Mumbai in 1997. Today, over 5,500 Ashok Leyland CNG buses ply on the roads of Delhi, Ahmedabad, Vijayawada and Mumbai, as also in certain overseas markets.

Another significant development by the company was India’s first multi-point fuel injection (MPFI) for high capacity CNG engine in 2008.

Tata Nano launched

Tata Motors formally launched its prestigious small car, the Tata Nano, in Mumbai on March 23. Keenly awaited across India since its unveiling on January 10, 2008, the Tata Nano is BS-III compliant and comes with an all-new 2-cylinder aluminium MPFI 624cc petrol engine mated to a four-speed gear box and will be available in three variants. The car will be on display across the country at Tata Motors passenger car dealerships and other select authorised outlets from April 1.

Addressing the press at the launch function, the Chairman of Tata Sons and Tata Motors, Mr. Ratan N. Tata, said: “The Nano represents the spirit of breaking conventional barriers. From the drawing board to its commercial launch, the concept, development and productionisation of the car has overcome several challenges. It is to the credit of the team at Tata Motors that a car once thought impossible by the world is now a reality. I hope it will provide safe, affordable, four-wheel transportation to families who till now have not been able to own a car. We are delighted in presenting the Tata Nano to India and the world.”

The Tata Nano is currently being manufactured at the company’s Pantnagar plant in Uttarakhand in limited numbers. The new dedicated plant, at Sanand in Gujarat, will be ready in 2010 with an annualised capacity of 3,50,000 cars.

The vehicle offers an incredibly spacious passenger compartment which can comfortably seat four adults. With a length of just 3.1 metres, width of 1.5 metres and height of 1.6 metres, it has the smallest exterior footprint for a car in India but is 21 per cent more spacious than the smallest car available today. A high seating position makes ingress and egress easy. Its small size, coupled with a turning radius of just 4 metres, makes it extremely manoeuvrable in the smallest of parking slots.
The three trim levels and their key features available at launch are:

Tata Nano Standard (BS-II and BS-III): The standard version, in three colour options, single-tone seats, and fold-down rear seat;

Tata Nano CX (BS-II and BS-III): In five colour options, with heating and air-conditioning (HVAC), two-tone seats, parcel shelf, booster-assisted brakes, fold-down rear seat with nap rest;

Tata Nano LX (BS-III): With the features of CX plus complete fabric seats, central locking, front power windows, body coloured exteriors in three premium colours, fog lamps, electronic trip meter, cup holder in front console, mobile charger point, and rear spoiler. Many of these features are not available in current entry-level small cars in the country.

Performance & Specifications

The 2-cylinder engine, delivering 35 PS @ 5250 rpm and a torque of 48 Nm @ 3000 rpm, enables the Nano to have a top speed of 105 kmph and negotiate inclines with a gradeability of 30%. Fuel efficiency of 23.6 km/litre, certified by ARAI under mandated test conditions, is the highest for any petrol car in India. The high fuel efficiency, coupled with a low kerb weight of 600 kg, ensures that the car at 101 gm / km has the lowest CO2 emission amongst cars in India. It is BS-III compliant and is BS-IV ready. It is also available in BS-II norms.
Safety

The Tata Nano safety performance exceeds the current regulatory requirements. It passes the roll-over test and offset impact, which are not regulated in India. It has an all-sheet metal body, reinforced passenger compartment, crumple zones and intrusion-resistant doors, besides mandatory seat belts, and complies fully with the existing Indian safety standards. Tubeless tyres, among which the rear ones are wider, enhance safety. The warranty is for 18 months or 24,000 km, whichever is earlier.

Booking

In view of the expected significant demand and limited production capacity initially until the Sanand plant is fully ramped up to capacity, the Tata Nano will be available through a booking mode. An exclusive agreement has been entered into with the State Bank of India to manage the booking process.

Sale of application forms and acceptance of booking will start from April 9 and close on April 25. Forms sold at a price of Rs. 300, with a range of offers from select associate Tata Group companies, will be available at over the 30,000 locations in about 1,000 cities through Tata Motors passenger car dealerships, the State Bank of India (SBI) and its branches, its subsidiaries and associates, other preferred financiers, and outlets of Westside, Croma, World of Titan and Tata Indicom exclusive stores.

After collecting the forms, customers have two options. They can either pay the entire booking amount themselves or seek financing of the amount. For those who seek financing, Tata Motors has entered into agreements with 15 preferred banks/NBFCs for the Tata Nano booking loan product. The booking product offered by these banks will enable a Tata Nano to be booked by paying an amount starting Rs. 2,999 only. Their chosen financier will directly submit their application forms to SBI on their behalf.

Those who choose to themselves pay their entire booking amount can submit their application forms to SBI through the 1,350 notified branches in 850 cites and also at Tata Motors passenger car dealerships, Westside and Croma outlets. Option to submit bookings online is available at www.tatanano.com.

Within 60 days of the closure of bookings, Tata Motors will process and announce allotment of one lakh cars in the first phase of deliveries, through a computerised random selection procedure. These allotments will be price protected for the launch prices till delivery of the cars, but the booking amounts will not bear any interest for the customers. Deliveries will commence from July next.
Applicants have the option to retain their booking deposit even if they do not get allotment in the first phase. Those who choose this option will be eligible for interest on their deposit, effective from the date of announcement of allotment of the second phase, at a rate of 8.5 per cent for retention period between one year to two years and 8.75 per cent for a retention period of more than two years. Allotment of retainees will be simultaneously communicated along with the allotment of the first one lakh cars.

Tata Motors has entered into agreements with 15 preferred banks/NBFCs for the Tata Nano booking loan product. They are the State Bank of India, Tata Motor Finance, State Bank of Patiala, ICICI Bank, State Bank of Travancore, State Bank of Mysore, State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State Bank of Indore, Axis Bank, Punjab National Bank, Federal Bank, Corporation Bank, Indian Bank and the Central Bank of India.

The Tata Nano comes with an attractive range of accessories and merchandise. The range of merchandise includes a Nano phone, Nano watch, T-Shirts, etc., and will be made available online at www.tatanano.com as well at all Tata Motors passenger car dealerships and outlets. Accessories include alloy wheels, body kits, etc., to customise the Tata Nano to individual tastes.

Continental’s Technical Center in Bangalore inaugurated

The international automotive supplier Continental has just launched its new Technical Center India facility at Bommanahalli on Hosur Main Road in Bangalore, to develop automotive technology and provide software services for Continental’s Automotive Group.

Since 2006, the Technical Center India has partnered with Siemens Information Systems Ltd. (SISL), KPIT Cummins Infosystems Ltd. (KPIT) and Wipro Ltd. for developing and supporting multiple automotive engineering projects for its global customers at Continental. Now the center is further expanding its Indian operations by establishing a captive development center in Bangalore. The Technical Center India employs about 600 engineers and aims at a 20 per cent annual growth.

Inaugurating the Technical Center, Dr. Gunnar Juergens, Head of Technical Center India, commented: “The approach consists of a captive development center of Continental and Offshore Development Centers (ODCs) which are operated by our engineering partners. Our partners in India are SISL, KPIT and Wipro. By working with partners we acknowledge the fact that India has great engineering talent and trusted experience in managing and developing world-class engineering. Our joint approach with the partners has been very successful and has built up a high level of acceptance and trust inside Continental, worldwide”.

Speaking on the occasion, Dr. Markus Distelhoff, Managing Director of Continental Automotive Components (India) Pvt. Ltd., observed that with the opening of the Technical Center, another milestone in the history of Continental India was achieved.

Globally, Continental India is recognized not only for its manufacturing capabilities but also for its development and engineering services. The Technical Center India brings home the rich experience of working on innovative technology for advanced markets and enables our engineers to localize technology for emerging markets at affordable prices.

The activities of Technical Center India include:

* Development and testing of engine management systems to reduce fuel consumption and emissions of engines

* Development of digital tachographs and telematics systems to optimize fleets of commercial vehicles and public transport systems (e.g., the London bus system)

* Testing of energy management software for electric and hybrid electric vehicles

* Software development and verification for electronic brake systems

* Testing and enhancement of body controllers with integrated tyre pressure monitoring systems

* Software enhancement for emergency call systems

* Software development to connect mobile phones with the car audio system and to stream media from the phone to the car

* Developing high-end car radios with embedded phones which enable new kind of services into the car

With sales exceeding Euro 24 billion in 2008, the Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics, tyres and technical elastomers, the Corporation contributes towards enhanced driving safety and protection of the global climate.

Ashok Leyland’s employee motivation for improved productivity pays off

“An idle mind is a devil’s workshop”, so says an old adage. However, Ashok Leyland begs to differ. The last six months has possibly seen the worst crisis in the history of the Indian commercial vehicle industry, and Ashok Leyland has utilised the period to motivate its employees to come up with ideas for improving productivity and efficiency resulting in significant savings in cost.

It all started in 1999, which was again during the recession that hit the commercial vehicle industry. The company then started an initiative called IMPROVE involving employees at all levels and departments. Employees form groups and quality circles that work on projects and processes which identify wastage and reduce it, increase productivity and enhance savings.

Today there are over 5,000 such groups spread across all the plants of the company, and every year a competition is held where each of these projects is assessed for its innovation, team spirit and financial savings for the company. The best six are selected to make presentations to the management, and one among them is picked as the winning project of the year.

The Ennore plant, which was the first manufacturing facility of Ashok Leyland to have started operations in 1948, has made many improvements and is particularly leading by example in this period of crisis. Mr. Sridharan Balaji, General Manager - Manufacturing of Ennore Plant, says that from October 2008, when the recession actually started, a total of 1,600 projects have been identified, of which 780 have been approved and implemented. All these projects have resulted in savings of Rs. 1.67 crores for the company.

In fact, by November 2008, the number of working days dropped to just 12 in a month. It was this slack period which was utilised by the employees to suggest areas of improvement to ensure enhanced productivity and cost reduction.

Normally the Ennore plant carries Rs. 120 crores worth of inventory at any point of time. This has been reduced to Rs. 90 crores, which is currently 16 days’ inventory. The company has managed to convert 1,305 vehicles which were lying in stock into saleable units by making minor modifications. This has led to reduced inventory of finished products and also reduced procurement of parts which would otherwise be required to manufacture those vehicles.
Ashok Leyland has also implemented Gemba, an initiative improve productivity and efficiency in the shop floor, few years back, which has helped reduce the cost and improve productivity. This employee involvement can go a long way in improving productivity and will also result in significant cost savings for the company.

The following are some of the innovations and improvements effected :

Innovation: A particular drilling and reaming operation in the ‘H’ engine fuel injection pump timing gears became a bottleneck at peak volume: the maximum capacity was only 44,000, whereas the required quantity during peak production was 71,000. The team identified the time taken for the operation as the problem area. New machinery was too expensive to consider, and moreover this process would soon become obsolete with the introduction of the new BS III norms. The aim was therefore to find innovative ways to reduce the process time of 18 minutes for four gears.

The first breakthrough achieved was in the introduction of the 8.8 mm carbide drill in place of the HS drill, which brought down the process time to 12 minutes. After further extensive analysis and testing, the team hit upon the solution to replace the 8.8 mm drill with a 9 mm drill without reaming. This further brought down process time to just 8 minutes. Not only was the unit’s demands met, but this also brought down the cost of components by Rs. 30. And this is a real case of sweating out an asset (the drilling and reaming machine) that would soon become obsolete. This works out to a recurring saving of around Rs. 21.30 lakhs per annum (at peak volume).

Process value engineering: There have been two significant improvements made in this area, namely, achieving higher overall equipment efficiency and interconnecting the two cooling towers. To keep the furnaces up and running in the renovated heat treatment shop, there are three cooling towers, all of which hitherto had to be used round-the-clock, 21x7, 365 days. Now, by interconnecting them, the two towers can be used to cool all the three furnaces and thus save on the energy used by one tower. Soon, all the three towers will be interconnected and then, at any time, two of the three can be used in rotation.

With regard to interconnecting the three gas chambers, the furnaces require Endo gas, a mixture of LPG and air in the proportion of 9:1. By using tow-way pipelines and introducing simple nozzle systems, the three Endo gas chambers have now been interconnected. Both these steps offer immense flexibility in operation of the furnaces and at the same time saving on energy.

The ultimate benefit from the above projects is conservation of the most critical resource of electrical energy by 4,23,756 units per annum (annual recurring savings of Rs. 20 lakhs) at full capacity working.
Value stream mapping: The primary objective at present is to determine and work with the defined inventory for each and every part used in the company vehicle. The programme aims at putting in place a system whereby the inventory of components is brought down to the barest minimum. This is by working out the amount of ready stocks required on the floor and that required in the stores, considering the location of the supplier and thereby the time taken for delivery. It also involves suppliers to set up depots close to the company’s units so that transit time is reduced to the minimum.

The focus is now on cost management initiatives and 5S house-keeping methods. As for quality architecture, the process is to put in place a matrix that indexes the criticality of a component against the capability of the process, whereby the requisite concentration is given to either a critical function or developing a certain capability. The aim is to reach 100 PPM levels.

Rectification involves conversion of non-moving vehicles, aggregates and parts into saleable units without affecting the dynamics or performance of the products. The aggregates are either retrofitted on vehicles or at assembly or pre-assembly stages – rear axles, by changing some of the external peripherals, steering boxes (choice between the Indian and Chinese makes as per demand), engines, gearboxes (between 5-speed and 6-speed), tyres, and batteries.

Some vehicles, already dispatched to RSO, are brought back to the unit for conversion. Overall inventories have been brought down by over Rs. 7 crores. The unit is now focusing on zero inwarding.

Apart from these initiatives, the focus is clearly on conservation – be it energy or any other resource. All safety-related measures are being taken up, like mapping possible accident spots and introduction of sensors. Even a maintenance audit, on the lines of a financial or quality audit, is being mooted.

SAME-Deutz-Fahr’s Ranipet plant expansion under way

The SAME-Deutz-Fahr Group (SDF), one of the world’s leading manufacturers of agricultural machinery, will be expanding its production plant at Ranipet in order to allow increased production volumes. SDF will also be introducing its premium brand Deutz-Fahr in the Indian market.

The current production capacity at the Ranipet plant where the Group already produces tractors of 40-70 hp, 3 and 4 cylinder engines, is 6,300 units per annum. The capacity expansion at Ranipet will increase the total covered surface up to 12,000 m2 and the total area to 132,000 m2 with a maximum production capacity of 11,000 tractors and 15,000 engines a year. In 2008 the total tractor production in Ranipet increased by 28 per cent to close at 4,000 units. This year the group plans to introduce a new 65-75 HP platform with a Tier III specification engines for the export markets.

The SAME-Deutz-Fahr Group, based in Treviglio, Bergamo (Italy), is one of the largest manufacturers of tractors, combine harvesters, engines, and agricultural machinery. Globally, products are made and sold under the SAME, Deutz-Fahr, Lamborghini, and Hurlimann brand names. Tractors range from 30 to 270 HP, while combines range from 125 to 450 HP, including conventional and rotary combines.

In 2008, the company, which employs around 2,700 people, achieved a turnover of 1,209 billion Euros. SAME-Deutz-Fahr owns 45.1 per cent of Deutz AG, one of the leading independent international manufacturers of diesel and gas engines.

The localization process in India of the 50-70 HP tractor platform was completed in 2008. Initially the tractors were produced exclusively for the export market (Europe, the US, Middle East and Africa). Now SDF will produce these tractors for the Indian market under the Deutz-Fahr brand.

India has the world’s largest tractor market with a total sales volume of 310,000 units in 2008. Due to structural changes in the Indian agriculture sector, there is consistent growth in the over 40 HP tractor segment which is likely to grow and represent 38 per cent (110,000 units) of the industry by 2015.

The continued development of India’s agriculture, combined with the growing demand for modern technology, allows the perfect opportunity for SDF to introduce its premium German brand, Deutz-Fahr tractors to Indian farmers and contractors.

The Deutz-Fahr brand which is targeted at progressive farmers in India will strengthen the position of SDF in India where the group will continue to sell its current products in the 40-6- HP range under the SAME brand.

“The production of the new 50-70 HP tractor range in Ranipet for both the domestic and export markets strengthens our presence in India, a strategic market in which the Group has been present since 1996, underlines Andrea Bedosti, Corporate Executive Vice President Sales, After Sales and Marketing. Thanks to the new product range, which offers important technological features, we expect to significantly increase our market share in India”.

Francesco Carozza, Chairman of SAME-Deutz-Fahr India, stated: “Deutz-Fahr has a long tradition that spans more than 80 years. The German Deutz-Fahr brand is known all over the world for its reliability as well as for its culture of service. Deutz-Fahr tractors, combines and forage harvesting equipment are the essence of technological research incorporated into pioneering products – machines that anticipate trends in modern farming and adapt to all kinds of operating conditions, in the name of total quality.”

Globally, in the last five years there are three major areas which are seeing increased agricultural activity for agricultural tractors and machinery. They are Russia, China and India. The total world market for tractors is 1.1 million. Today, India, China and Russia account for 50 per cent of the world tractor market.

Deutz-Fahr plans to focus in the next five years on these three countries which constitute for more than 60 per cent of the total tractor market. In order to compete in these three fast growing markets, it is important to develop a product range that will suit the local market.