Their optimism is not without ground. Against a world average of 3 to 4 percent, the Indian automotive sector grew by 10 to 12 percent in two years. Though the growth stagnated over the last two years, the industry friendly 1997 Union Budget will give further push to this sector.
The boom in the automobile sector in India came along with the policy of liberalisation started by the then Rao Government which opened the floodgate to car makers. Earlier, in the eighties a few Indian companies went into tie-ups, was that of Maruti Udyog Ltd., with the Suzuki Corp., of Japan. Still Maruti Udyog controls over 77% of the automobile market. Its most popular brand being the Maruti 800, for the Indian car market is heavily skewed in favour of small and low-priced cars.
In its fifteen years of operation Maruti has emerged as one of the most successful brands in Indian corporate history. The successful indegenisation, strict quality control and an established dealer and service networks have made this organisation a pioneer in this sector. And as part of its future plans, Maruti Udyog is upgrading its products, beefing up its already strong dealer network, providing new colour options, launching environment awareness programmes and fresh advertising campaigns to take the competition and rivals head on. As a result Marutis sales figures are showing consistent and remarkable upswing and so is its production capacity.
Maruti Udyog Ltd.s joint ventures and vendors play a very vital role in the organisation success. The auto components being supplied by these vendors help Maruti maintain a competitive edge in the market.
The growth in automobile industry has also increased the output of component and there has been definite increase in growth rate to meet domestic needs. Moreover, the component industry is now even being recognised abroad as a viable source of quality component at competitive prices.
One of the such component manufacturers is Krishna Maruti Ltd (KML), which is engaged in the manufacture of car seats. KML supplies its products to Maruti Udyog for almost all models of its cars. Of the company's equity capital 13.41% is held by Maruti Udyog Ltd, 24.14% is held by Suzuki Motor Company Japan, 37.45% is held by Ashok Kapur & Associates and balance 25.10% is held by public .
KML has promoted two ancillaries named Krishna Car Pads Pvt Limited for the manufacture of head rest pads and Krishna Car Trims Pvt Ltd for the manufacture of trims for seats. KML is also diversifying into the manufacture of automotive fabric in collaboration with a European leader at the cost of Rs. 40 crores.
KML has secured ISO 9002 certified by TUV Bayern.
Another in the line of auto component company is Jay Yuhshin Ltd. The company established in 1986 as joint venture with U-Shin Ltd., Japan (suppliers to suzuki Motor Co., Japan) to meet the requirement of Maruti Udyog Ltd., for their entire range of vehicles.
Jay Yuhshin Ltd., since its inception in 1986, has acquired the status of an Indian leader in the field of automotive key sets, door latches combination switches, heater control lever and panel assemblies etc. It is recognised today as the manufacturer that "sets the standard" in its speciality for the automotive industry.
To maintain a niche in the market Jay Yuhshin believes in total quality control and timely delivery of its products. In its endeavour to total quality control Jay Yuhshin Ltd., is equipped with most modern test laboratory - which has all the equipment and means required for complete quality control.
In keeping with the future vision Jay Yuhshin Ltd., invests heavily on HRD. Engineers and technicians are sent to U-Shin, Japan for upgradation and enrichment of technical know-how. In the able guidance of companys Indian promoters, Mr.J.P.Minda and his two sons Mr.Anil Minda and Mr.Ashwani Minda and state-of-the-art production facilities, the Jay Yuhshin Ltd., is all set to continue its ride on the road of success.
Automotive industry was given a sudden shock in the form a legislation which pronounced that each new vehicle coming out of the assembly line should use catalytic converters.
This was required for the environment friendly unleaded petrol. To meet this sudden requirement Mark Exhaust System Limited (MESL), a subsidiary company of Mark Auto Industries Ltd., in technical collaboration of Sankei Giken Kogyo Co.Ltd., Japan became the sole supplier of exhaust systems and catalytic converters for Maruti Udyog Limited which are also being exported under "Suzuki" brand name around the world.
The parent company of MESL, Mark Auto Industries Limited has a joint venture with Maruti Udyog Limited, the largest carmanufacturer of India. This gives the company an inherent access to one of the biggest reservoirs of expertise. Beginning in 1986 the company has successfully harnessed its synergies in the manufacture of sheet metal parts and assemblies for the automotive and engineering industries.
With proven quality tools used effectively in the assembly line, the company is all set to expand its area of operation. Already Mark Auto is supplying muffler boxes to gasoline and diesel manufacturers in Italy, as original equipment. More countries are also coming under its supply net. Consequently, the company is widening its product range with the addition of recoil starters and tractor/automotive mufflers etc.
Mark Auto, in its spate to maintain a sustainable competitive strategic advantage has entered into a technology transfer agreement with a leading Italian filter company for the development of air/oil and screw type filter. Mark Exhaust on the other hand has a lock seaming based exhaust manufacturing line using European technology.
Machino Plastics Limited (MPL) is another in the line of dedicated vendors for the Maruti Udyog Ltd. MPL, an associate of the illustrious Machino Conglomerate of Calcutta, is a commendable project of injection moulded engineering plastics. In its ultra modern plant, incorporating state-of-the-art Japanese technology, MPL manufacturers bumpers, instrument panels and other components. Companies quality concerns has won it ISO9002 certification from AIB Vincotte - Belgium for its injection mouldings of large plastic components.
As a part of its diversification plans, MPL is developing polypropylene polymer advance materials. These materials have key applications in the auto and consumer industries of the future.
The companys success owes a lot to its visionary - Mr.M.D.Jindal, and guidance given by Dr.S.Jindal. The company is looking beyond domestic market and is gearing for global competition. Thus it has strategically allied with world leaders Montell, through technical collaboration. MPLs current track record justifies its futuristic vision fully.
Precision Pipes and Profiles Ltd., with over 250 employees is a leading manufacturer of automotive components and have been catering to the entire requirement of Maruti Udyog Ltd., for the last eight years. For its services, the company has twice received the best vendor performance award.
The companys product range includes - Weather strip/Scalp door outer/inner, door opening trims, moulding wind shield, moulding back window, injection moulding body side mouldings.
In keeping with the contemporary times and gearing up for the future, Precision Pipes has an active technology tie-up with M/s Tokai Kogyo Co.Ltd., Japan. An ISO9002 certified company, Precision Pipes is all set to become component vendors for other joint auto giants of the world.
Sun group of companies which includes Sun Vacuum Formers Ltd., Sun Steering Wheels Ltd., TS Tech. Sun (India) Ltd., and Sun Petri Ltd., are leading manufacturers of automotive parts for leading auto companies (National and International). To keep its products to the world standards, the group has technical collaboration with pioneer companies of the world.
The group manufactures automotive plastic parts, steering wheels, interior parts for Honda, door trims, roof lining etc.
The future of Indian auto components industry seems to be very bright. With the liberalisation in the automobile industry, India is fast becoming heaven of auto giants. Many of these players for long time strategy to indegenise production and reduce cost to be competitive. This could save the day for domestic auto component industry as they will be relied upon more for component supply. Presently Maruti which is 50:50 tie-up with Suzuki company of Japan, sits on a comfortable chair owing to its indegenisation of all its auto parts. This makes its car cheaper compared to other foreign brands to import the car in CKD condition paying custom duty.
If indegenisation becomes a mantra for these auto giants too, Indian auto components industry would have a hay day.
We have market share of 85% of the total
automobile airconditioning system. This itself talks
for our quality.
RAMESH SURI - CMD
Subros Ltd.
We are 50 years old and firmly established as a well known brand name
synonymous with quality products in India.
D.K. JAIN - MD
Lumax Industries Ltd.
The working atmosphere and philosophy of MUL has made them one of our best business associates.
SUBHASH SATHE - MD
Sun Vacuum Formers Ltd.
