Page 1

INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

Vol. 1 No. 2 August 2011

64 Pages `50

SPREADING WINGS

A SUCCESS STORY Brought to you by

Auto Monitor


EDITORIAL EDITORIAL Editor T MURRALI Editorial Advisory Board VISHNU MATHUR, Director General, SIAM VINNIE MEHTA, Executive Director, ACMA SP SHAH, Director General, FADA Editorial Team ABHISHEK PAREKH, NABEEL A KHAN, SHAMBHAVI ANAND, NANDITA KAPADIA, BHARGAV TS, AKMAL RAHMAN B, MICHAEL ANTHONY

MARKETING & SALES CEO-Publishing SANDEEP KHOSLA Associate Vice President SUDHANVA JATEGAONKAR Sales Co-Ordinator AKSHATA RANE

DESIGN & PRODUCTION Chief Photographer MEXY XAVIER Asst. Art Director VARUNA NAIK Senior Designer MAHESH TALKAR Scanning & Colour Correction RAVIKUMAR POTDAR, RAVI SALIAN, SANJAY SHELAR Production Team DNYANESHWAR GOYTHALE, VIKAS BOBHATE, PRAVIN KOYANDE Photographer NEHA MITHBAWKAR, JOSHUA NAVALKAR

BUSINESS OFFICES Ahmedabad : Shashin, T: 079-39826432 F: 079-39826464 sipdahmedabad@infomedia18.in Bangalore : Mahadev B, T: 080-30010900 F: 080-30010999 sipd.bang@infomedia18.in Chennai : Hari, T: 044-39864200 Fax: 044-28295060 sipd.chennai@infomedia18.in Cochin : Robin, T: 0484-4054380/390 F: 0484-4054370 kochi@infomedia18.in Coimbatore : Prakash, T: 0422-3092600 F: 0422-3092666 coimbatore@infomedia18.in Delhi : Mukesh / Surendra, T: 011-66303278 F: 011-23327884 sipd.delhi@infomedia18.in Hyderabad : Rahul, T: 040-30647600 F: 040-30647676 sipd.hyderabad@infomedia18.in Indore : Ameya, T: 0731-3074876 F: 0731-3074882 sipd.indore@infomedia18.in Jaipur : Durgesh, T: 0141-3007411/414 F: 0141-2213728 sipd.rajasthan@infomedia18.in Kolkata : Deb Ranjan, T: 033-22658637/38 F: 033-22652964 sipd.kol@infomedia18.in Ludhiana : Inder, T: 0161-3026198/199 F: 0161-3026198 ludhiana@infomedia18.in Mumbai : T: 022-30034651 F: 022-30034499 b2b@infomedia18.in Pune: Rohit Dass, Tel: 020-33223309 Fax: 020-33223322 sipd.pune@infomedia18.in Surat : Sunil, Tel: 0261-2630181 Fax: 0261-2630974 surat@infomedia18.in Vadodara : Samarth, Tel: 0265-3926500/01 Fax: 0265-2356013 vadodara@infomedia18.in

Changes Of Interest

A

fter the Reserve Bank of India increased the short term lending and borrowing rates by 50 basis points last week, making all personal and corporate loans expensive, the footfalls in the car showrooms have started dwindling down. This is because the people wanted to put on hold their new car purchases for some time now or till they get some relief. However, this phenomenon seems to have triggered two sets of business to grow. Firstly, it has increased the sale of used cars in quite a few markets. Secondly, it has also made the after-sales service outlets of the OEMs and the multi-brand third-party service centres busier. When the purchase of new vehicle is postponed for a while, the existing one has to be maintained properly and the better option is to go to an authorised or an organised garage. It is learnt that a significant number of thirdparty outlets are doing brisk business in different parts of the country. Irrespective of the change in the interest rates or anything for that matter, this segment of aftermarket is set to grow rapidly due to the soaring vehicle population and also increasing expectations of customers in terms of proximity and convenient timings. Opportunities are immense and those who cater to the demand besides, introducing innovative concepts will thrive in the business. Also, this will help the unorganised garages to become the choice of customers as these units would evolve matching the service requirements of modern vehicles. The Issue that you are holding has a cover story on TVS PartSmart, the multi-brand truck parts shop of TV Sundram Iyengar & Sons. Also we have carried a special section—ADEA: A Success Story, which will give you the complete overview of the second edition of the Automotive Dealership Excellence Awards organised by Federation of Automobile Dealers Association of India and Auto Monitor. Wishing you much pleasure reading. Do send us your feedback.

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T. Murrali Infomedia 18 Limited, Special Interest Publications Division, ‘A’ Wing, Ruby House, J. K. Sawant Marg, Dadar (W), Mumbai - 400 028, India Tel: +91-22-30245000, Fax: +91-22-30034499 Views and opinions expressed in this magazine are not necessarily those of Infomedia 18 Limited. Infomedia 18 Limited does not take the responsibility for returning unsolicited material sent without due postal stamps for return postage. No part of this magazine can be reproduced without the prior written permission of the publisher. Infomedia 18 Limited reserves the right to use the information published herein in any manner whatsoever. For all international subscription enquiries, contact The Subscription Department, Aftermarket. Printed by Mohan Gajria and published by Lakshmi Narasimhan on behalf of Infomedia 18 Limited and printed at Infomedia 18 Limited, Plot No 3, Sector No 7 Off Sion Panvel Road, Nerul, Navi Mumbai 400 706 and published at Infomedia 18 Limited, Ruby House, “A” Wing, J. K. Sawant Marg, Dadar (West), Mumbai – 400 028 Lakshmi Narasimhan

t.murrali@infomedia18.in


NEWS

CONTENTS NEWS 4

Subros increases presence in aftermarket

8

NK Minda Group launches CNG kit

10 Ocap India to produce for Indian aftermarket

4

8

12

13

11 ACDelco expands product portfolio 12 Zafco plans multi-pronged strategy for India 13 Equipment launch to propel ITC expansion 15

18

COVER STORY 20 Spreading Wings TVS & Sons is looking for nationwide presence in spares business and inorganic growth opportunities

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SPREADING WINGS REARVIEW 15 Multi-brand car service centres take on authorised service stations 18 Young Servicemen: Running business at your doorstep INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

25-40

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Vol. 1 No. 2 August 2011

64 Pages `50

SPREADING WINGS

A SU S SUCC SUCCESS UCCES CCES CC SS STORY STO ST OR RY

A SUCCESS STORY Brought to you by

FOCUS 44 Traders focus on profits as ACMA intensifies drive against counterfeits

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ADEA 2010

Auto Monitor

Cover Design Mahesh Talkar


NEWS

Subros increases presence in aftermarket Nabeel A Khan

L

Ramesh Suri, CMD, Subros

eading auto component maker—Subros, is planning to increase its presence in the aftermarket by launching bus airconditioning kits and heat exchanger products. Currently, the aftermarket contributes around three percent to its total revenue and the company is hoping to increase it to around five percent by next year. The component manufacturer closed the fi nancial year (2010-11) with a growth of almost about 22

percent. This fiscal year, the company has touched a turnover of `1,203 crore from `983 crore in FY10. “We see a good potential in the after sales, so we are going to introduce new products in this segment including radiators,” Chairman, Ramesh Suri told Aftermarket. Subros will also be introducing heat exchanger products—condensers and radiators in the aftermarket. It aims to sell around 20,000 units of these products per year by 2012. It has already started testing of bus AC kits recently and expects to sell

Subros plant at Noida

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AFTERMARKET AUGUST 2011


NEWS

around 500 kits next year. So far, the company was selling its products primarily to OEM authorised dealers. However, looking at the recent developments, a good number car owners who, after receiving their free services, switch to local spare parts shops, Subros will also be selling its products in the aftermarket through the network of local spare parts dealers. Although the company did not clearly disclose any plans about selling the products at the local spare parts shops except confi rming that it will rope in local spare parts dealers to sell the heat exchanger products. In a report released by ACMA, the current size of the aftermarket in India was estimated at around `330 billion and 75 percent of this (`248 billion) is contributed by the component industry. The country’s leading auto aircon manufacturer is mainly a Tier I supplier as it gets over 95 percent of revenue from this route. Its customers are all the major OEMs including Maruti Suzuki, Honda and Tata Motors. As an OEM supplier, it is planning to diversify into commercial vehicles including low floor buses

Work in progress at Subros plant

and trucks. The company will also supply to a refrigerated van to be developed by Tata Motors on its

It is planning to diversify into commercial vehicles including low floor buses and trucks. The company will also supply to a refrigerated van being developed by Tata Motors on its ACE platform for carrying food stuff. ACE platform for carrying food stuff. For this new segment, the

A view inside the plant

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Noida-headquartered manufacturer has acquired a 10-acre near Chennai to build a new facility. The construction of the plant has already started and it is expected to be operational by the end of this fi nancial year. “We have chosen this location for close proximity to the OEMs in CV segment. We are talking to Daimler to supply the component. However, Tata Motors and Volvo (through our partner Denso) will be the fi rst customers in this segment,” said Chairman, Subros, Ramesh Suri. He added that it has not yet worked out the volume as the requirement of ACs in buses and trucks is very low. This year, the volume may not be high as this is just a beginning but next year it hopes to attract a good number with the supply coming into full operation by the last quarter of this year. By the fi nancial year 2012-13, it expects to have a supply of up to 5,000 units annually in this segment. It sees prices increase as temporary phenomena as far the sales are concerned, it is bound to pick up because there is trend in the country to own a vehicle not for comfort but as a necessity which will keep the growth consistent. „


NEWS

NK Minda Group launches CNG kit Nabeel A Khan

T

he Autogas division of Manesar-based component maker, NK Minda Group is planning to launch CNG kits for cars in the aftermarket this month. The kit is suitable to be fitted into any car model with an engine ranging from 750 cc to 1875 cc. The group has been manufacturing CNG/LPG kits since 2001 for the car makers like Maruti Suzuki, Tata Motors, Toyota, Honda and TVS. Choosing this time for the launch of the product was driven by the increase in demand of alternative fuels due to the continuous rise in the petrol and diesel prices. According to an official, the new kit will have an edge over its competitors for its convenience and safety measures as the kit can be fitted into any kind of car within two to three hours. The product is fitted with all the safety features like appropriate routing and clamping of the CNG high pressure lines. A solenoid valve has been used to start the supply of CNG from CNG cylinder to engine only in an engine-start condition. And the cylinder valve is also equipped with a safety device like fusible plug and burst disc to release the CNG from the cylinder to the atmosphere in case of increase of temperature and pressure above the specified limit. Its regulator can withstand temperatures ranging from -200 C to 1,200 C degree, without affecting the performance. The kit is tested and approved by ICAT—a certified testing agency of government of India. “Since the CNG kit is always an area of concern for the safety

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of human n beings, hence we have given ourr priority fi rst to safety. These CNG NG kit components are e designed, tested and nd validated by experienced xperienced engineers. s. Each kit component ent is tested on a production oduction line before dispatch to a retro-fitment ment centre to ensure a defect-free product to the he end customer,” an official al told Aftermarket. It will target customers who are interested ested in saving on the running costt of vehicle, as well as want to contribute bute to the society by the reducing pollution. It plans to sell about 15,000 000 CNG kits in India out of total projected sale of 100,000 CNG kits in financial year 2011-12 for the aftermarket. Currently, the group has a network of 20 retro-fitment centres in Delhi, one in Faridabad and two in Gurgaon which it plans to increase to 30 by the end of this year. The NK Minda Group, one of the technology leaders in auto components industry, is a major supplier of proprietary automotive solutions to OEMs as Tier I. It manufactures switches, electric mirrors, horns, lamps, blow moulding components, electronics and sensors, CNG-LPG kits, batteries and seats for Original Equipment Manufacturers (OEMs). It is today a $380 million group and is rapidly expanding with increased market share in its product lines. Streaming with the ambitious growth projections of the automotive component sector, the group is looking to tap the largest possible share in the growth story by introducing new product lines, signing new JVs

and exploring new w markets. This year, the apex body y of component manufacturers—Automotive Component Manufacturers Association of India (ACMA) has estimated that the industry will touch a business of $110 billion by 2020. The group clocked a turnover of `1,700 crore without tax and hopes to touch `2,200 crore in the current fiscal. It is also on the lookout for acquisition oppurtunities. The company has recently set up a design centre in Taiwan and looks at increasing contribution from its international business and exports to over 25 percent from current 11 percent. The group is a global player in automotive sector with manufacturing facilities in Indonesia and Vietnam and offices in Japan, Europe and China. It has 21 manufacturing plants in India and has JVs/technical agreements with world renowned manufactures such as Tokai Rika, Japan, Soft Italia, Italy, Kyoraku, Indonesia, Emer, Italy. „


NEWS

Ocap India to produce for Indian aftermarket It is in touch with Mahindra World cap India, the component City for the same. manufacturer, plans to The existing plant address the Indian after- at Bhiwadi earns 80 market by 2012. The company, percent of its revewhich is setting up a new plant in nue by supplying to Rajasthan, after bagging orders the parent compafrom several commercial vehicle ny headquartered and tractor manufacturers, is also in Turin, Italy. It exploring other export markets produces 300,000 in the Asian region. It might also assemblies every produce for the aftermarket of pas- month. The plant, which was set up in 2001, has 300 senger vehicles. “The capacity of our current plant people on its rolls. Ocap India, earlier, worked as has been utilised up to 70 percent. The remaining capacity will be uti- an ancillary to its Italian parent, lised to fulfi l the immediate orders. Ocap Italia. It started addressing But with the setting up of a new the Indian market only since midplant, we will have enough capac- 2010. Presently, it produces for ity for addressing the needs of the export to German and Mexican aftermarket also,” Vice President, aftermarket, which is governed by Sales and Marketing, Ocap India, the parent company in Italy. The Ravi Jaitley, told Aftermarket in an aftermarket contributes a major share to the income of Ocap India. exclusive interaction. The company, which has an exist- Around 49 percent of its revenue ing plant in Bhiwadi, Rajasthan, is comes from the aftermarket and 51 scouting for land in the same state. percent from the OEM business. Within the short span of one year of starting its operations for the Indian market, the company has bagged orders from some of the leading commercial vehicle as well as tractor manufactures. It already has orders from Mahindra and Mahindra, New Holland, JCB, Terex, Dana and Ognibene in its kitty. It is in conversation with more OEMs. The Italian parent already has Fiat, Nissan, Ashok Leyland and other European tractor manufacturer as its customers. With its headquarters in Range of products by Ocap Turin, Italy, the component Shambhavi Anand

O

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Bhivandi office of Ocap India

manufacturer produces products for all the segments of the automotive industry ranging from passenger vehicles and commercial vehicles to tractors. It has considerably high stakes in Dana, the European producers of axles for tractors to which it is almost a single source supplier. It earns its maximum revenue by supplying to the tractors maker, which contributes 37 percent to its earnings followed by passenger vehicles (35 percent) and commercial vehicles (25 percent). Almost all the products made for the aftermarket are designed at the Indian design centre in Bhiwadi which has strength of 15 employees. The company is planning to expand its design team also. In days to come it will also do the designing for the components targeted at the OEMs, hence the expansion. Ocap India manufactures of tie rod assemblies, drag link assemblies, ball joints, stabiliser links and control arms. It is also planning to diversify into new products. Following the footsteps of the Italian parent, it is also planning to manufacture aluminium die casting products which are long lasting. „


NEWS

ACDelco expands product portfolio Nabeel A Khan

A

CDelco India recently introduced a new range of VRLA batteries in a bid to expand its product offering. Based on AGM (Absorbed Glass Material) technology, the VRLA or valve regulated lead-acid batteries provide protection to industrial, commercial or business organisations against the disruption caused by electrical outages. A division of GM Technical Centre India, the company supplies aftermarket auto components for various models/makes in India. It meets the OE genuine spare parts requirements and caters to the aftermarket through a network of over 300 wholesale distributors. It sells lubricants, batteries, brakes, fi lters, drive shaft, air conditioning parts and wipers for vehicles of various makes for the aftermarket. The VRLA rechargeable batteries have been designed to provide high rate power capacities over short term

durations. This feature makes the VRLA battery universally appealing across a broad spectrum of applications and systems. In addition to providing auxiliary power to maintain the uninterrupted function of electronic and telecommunications equipment, VRLA batteries also support the provision of emergency lighting, safeguard against security system and signalling failures, whilst supporting DC power supplies. They are also suitable for all types of UPS and EPS applications. Commenting on the launch of VRLA Batteries, Director, ACDelco, Rajesh Nangia said “Launching an ACDelco range of VRLA batteries obviously means that organisations of all sizes will be able to source a product that will provide the power back-up required to protect organisations against the inconvenience that outages bring.” Incorporating a fully sealed construction, the company’s AGM VRLA batteries are ‘recombinant’. This means that oxygen and hydro-

gen recombine inside the battery, creating water and so preventing water loss through electrolysis. The recombining process is typically 99 plus percent efficient. AGM batteries are also leak proof, as they do not spill electrolytes, even if inverted. They are maintenance free as there is obviously no requirement to regularly add water. With no corrosion, V RL As, which incorporate a pressure release valve, are low gassing (unless overcharged), offer good cycling and stationary performance, whilst providing equally good high rate discharges. They also exhibit very low self-discharge, typically one percent to three percent per month, which means they exhibit a long shelf life when compared to standard batteries. Due to the plates within AGM batteries being tightly packed and rigidly mounted, their rugged construction makes them less susceptible to shocks and resistant to vibrations. „

VRLA batteries

AUGUST 2011 AFTERMARKET

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NEWS

Zafco plans multi-pronged strategy for India Akmal Rahman B

Z

afco, the manufacturer and distributor of automotive tyres, batteries and lubricants, has announced the launch of its India operations at the recently concluded Tyrexpo India 2011, in Chennai. The Dubai headquartered company is planning to setup 84 trucking centres in India that will meet the demands of the industrial and commercial sector. It believes that this initiative will provide a platform to enter the premium segment of the tyre market in India. The CEO, Zafco, Gopiraj KV said, “We have seen India as a market having increasing buyer growth and demand. Our products will defi nitely suit the Indian market for both heavy vehicle and passenger cars.” Though the company had set up its office in India a year ago, it commenced distribution of its products only recently. The company has its own brand called Zeetex for tyres, batteries and lubricants. It also sells the products of ‘Double Coin,’ which is an outsourced brand for the transport sector. “We are trying to eliminate a couple of channels in between,” to

Gopiraj KV, CEO, Zafco

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AFTERMARKET AUGUST 2011

Zeetex Products

help the customers get the products at a competitive cost, which in turn will benefit the company and receive customers’ feedback, he said.

The Dubai headquartered company is planning to setup 84 trucking centres in India. The initiative will provide a platform to enter the tyre market here. It has plans to expand in global markets by diversifying its portfolio of services including retail and manufacturing. The company has planned a new strategy by setting up car service centres in the Gulf region under the new brand Zdegree, which is nothing but lifestyle automotive concepts like car spa, in association with Switzerland-based Swissvax. While the car is being serviced, the owners can enjoy the comfort of the coffee lounge and can spend time at the retail shop attached to the spa. “The new concept that will fi ll the gap in the market by changing the

customer care service standards in the industry” he added. When asked about supplying products to OEMs he said, “Currently we are not supplying our products to OEMs, as it has both positive and negative aspects; we believe that the aftermarket has more opportunity to play wider in the market.” The company has consistently been recording a growth of over 30 percent each year, with an annual turnover of about $272 million in 2010. It is expecting to register $one billion by 2013, banking on the expansion plans including opening of 65 retail outlets across the GCC (Gulf Cooperation Council) region and 10 in the UAE. Zafco has contract manufacturers like Ceat Tyres in Sri Lanka and Agarwal Tyres and Tubes in India and is further looking at manufacturers to get the tyres made on contract basis. The company may setup its manufacturing facility if the demand in India justifies the plans. It already has a joint venture with Otani Tires in Thailand to cater to the Asia-Pacific market. „


NEWS

Equipment launch to propel ITC expansion Bhargav TS

B

angalore-based International Tool Co (ITC) is planning to launch coolant testers and programmable oil fi llers soon as these products are in demand at service stations. These two new products help the service stations speed up the work while being cost effective. Filling engine oil and gearbox oil is a cumbersome and time consuming process and is usually done either manually or through a centralised dispensing system. According to the company’s Head, India Sales, Jayachandran Menon, the latter is quite expensive and is available only in large workshops. ITC’s programmable oil filler helps in improving productivity while also ensuring that the correct volume of oil is dispensed, he said. The user can feed in information like the volume of oil required to be dispensed and the unit will dispense accordingly. The portable unit will also indicate the amount of oil dispensed over a given period, which will help track cumulative consumption.

Jayachandran Menon, Head India Sales, International Tool Co.

The equipment has a range of nozzles to facilitate dispensing oil according to different kinds of vehicles. Currently, coolants are checked based on the mechanics’ experience, which may not be very accurate. The concentration of the coolant in the engine cooling system is an important factor to maintain the engine temperature which in turn affects performance and the life of the engine. There are a few coolant testers in the market; however these equipment check the quantity of anti-freeze in the coolant, which may not be relevant in most parts of the country. “ITC’s new Coolant Tester under development is a simple optical device that will indicate the percentage of the coolant. A few drops of the coolant is all that is required by the device to indicate the quality of the coolant and advise mechanics on whether to add the coolant or dilute it,” he said. The company has a manufacturing facility in Bangalore and it manufactures the diesel flow system, suspension and brake repairing systems and few related components. It also markets testing equipment for cooling systems, electrical systems, brakes and suspension systems and few sets of tools. Menon said that the plant in Bangalore is used only to manufacture the equipment while the entire research and development takes place at the company’s headquarters in Leicester, the UK.

Cooling System Tester

After studying the potential market in India, the company has recently launched two new products—an electrical system tester and digital battery analyser— that helps the service stations and vehicle manufactures to speed up the process faster. According to Menon, the automotive aftermarket constantly requires new test solutions, high-performance equipment and innovative approaches and ITC is constantly working on to address these issues. The company’s aim is to capitalise on the opportunities emerging out of the increased sales of existing passenger cars and twowheelers, besides the new players entering the market. Moreover, new generation cars need modern garage equipment, which spurs the demand further. The company has bagged orders from major OEMs, which will be executed in the next few months. The company is also expanding its manufacturing facility in Bangalore by introducing automation and adding a few machines. It also exports its products to Europe to few customers including Snap-On, Draper, Würth and RAC, among others. „

AUGUST 2011 AFTERMARKET

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NEWS

Speedworks introduces air-con cleaner Akmal Rahman B

W

hile the comfort features in cars are rapidly increasing, there is a need for suitable maintenance not only for the longevity of the system but also for safer use. And this is true in the case of car air-conditioning systems too. Based on this several domestic and foreign companies have introduced their car care products in Indian market right from engine oils to car washing solutions. The Chennai-based Speedworks Trading, a supplier of car care products, has re-launched its air-conditioning cleaning product ‘OWS 888 Air Con Clean’, manufactured by OWS based in Germany. The uniqueness of this product is that it can be used without any support of tools or equipments. Besides, it is cost effective when compared with the normal air conditioning cleaning process. “The customer himself can clean the air conditioner without the help of a mechanic because the method is very simple,” said the General Manager, Speedworks Trading, KCA Naraayan. Studies have shown that the

The customer himself can clean the air conditioner without the help of a mechanic

Indian humid and hot climate is conducive for the growth of harm-

The uniqueness of this product is that it can be used without any support of tools. Besides, it is cost effective when compared with the normal air conditioning cleaning process.

ful micro-organisms, especially in the air condition system of cars. The product prevents and kills harmful bacteria that thrive in the moist environment inside the car. Growth of these bacteria and fungi creates a bad odour and affects the ambience inside the cabin when air condition turned on. According to OWS, OWS aircon clean 888 the cleaner cleans and

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AFTERMARKET AUGUST 2011

eliminates the bad odour besides, leaving a fresh smell and creating a healthy environment inside the car. It is a non-toxic solution and foam cleaning product that cleans and discharges through the drainpipe at the bottom of the car. According to him, this cleaner can be used once in six months to maintain a healthy and bacteria free environment. “The usage is very simple—the cleaner can be applied by inserting the spray tube through the air-condition duct. The tube should be drawn back while spraying so that the solution reaches even the hard to reach places inside the duct. The system can be used after about 45 minutes. For safer use, it is better to disconnect the car air-condition from battery, before using the product” he said. The product has been approved by M&M and “we have got a couple enquires from other OEMs for their service stations; we are waiting for OEM’s approval, “he said. OWS has been supplying its performance, fuel saving, emission reduction and racing parts for the past nine years in India. „


REARVIEW

Multi-brand car service centres

take on authorised service stations Shambhavi Anand

A

n extraordinary business opportunity is not always about inventing a revolutionary service but also about making the existing services available at a convenient time and place, believes Venu Donepudi and Vijay Gummadi, founders of CarZ, a multi-brand car service network. In spite of a hoard of service stations, Donepudi and Gummadi felt a gap between the technical knowhow available with traditional garages for the new generation, technologically advanced vehicle and flexibility in services provided by the service centres of the dealerships. “With more than 18 million cars on the road from numerous vehicle manufacturers, our research says that only one-third go back to the service centres of the dealership after the warranty period is over. And the traditional garages do not have enough knowledge or equipment to handle the technologically advanced cars. That leaves a huge gap which is still unaddressed,”

Co-Founder and Managing Director, CarZ, Venu Donepudi said. Based in Hyderabad, CarZ combines the best of the two—express facility at competitive prices of garages with advanced technical know-how of the dealership service centres. The service station provides services for all brands ranging from Indian manufacturers like Maruti to the British, hand-built Bentley. It offers express and mobile service to customers for their convenience. One can get their car picked up from their doorsteps at night and get it back (in case of minor maintenance repair) the next day before office at no extra cost. The services offered at CarZ can be availed at prices which are lower than the ones at dealerships. According to Venu, the dealerships have to recover the cost of showrooms and its additional staff from the service centres which is not the case with them. Transparency is another factor that the service network emphasises upon. Customers can walk up to the floor to have a look at their vehicle at any point of time.

AUGUST 2011 AFTERMARKET

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REARVIEW

The company does not compromise upon the safety of its customers. If spare parts are required, it gives them an option to choose from original OE parts, genuine spare parts, Taiwanese parts and Chinese parts. In case of spares related to safety only genuine parts are used. Employment of experienced technicians is also crucial for being able to provide excellent service. Those with experience are the only ones who can fi nd a place at CarZ. A stint with Toyota counts. The company also has tie-ups with leading insurance companies for cashless facility. Equipped with the latest diagnostic scanner, electrical and mechanical system, lifts, body and paint shops among other equipments, it provides numerous services ranging from maintenance to collision repair to car wash. The modern garage equipment used by CarZ has been imported from Japan, Korea and Germany. The company works closely with the leading automotive diagnostic manufacturer, Bosch for providing after sales services. It has also partnered with Glasurit, European supplier of paint and refinishes system, for providing high quality services at lower costs. Some

other reputed names with whom Carz has alliances with are Wurth, Basf, Indian Oil Corporation and Amaron, in addition to several in the garage equipment and spare parts areas. “Vijay and I have over 12 years of experience in the automotive sector in India and abroad dealing with manufacturing systems, supply chain management, corporate strategy and business development,” Venu said. While Venu has worked with leading auto manufacturers like Ford and GM, Vijay has an experience of several markets like North America, Europe, Japan and China. Both of them are qualified engineers. The company also has an advisory team of experts lending their support. Some of the important names being David Cole, Advisor, Strategic Initiatives, Chairman, Centre for Automotive Research, Ann Arbor, USA; Gary Vonk, Advisor, Operations and Business Strategy, Ex-CEO and President, Midas International; Mahendra Ramsinghani, Advisor, Finance and Venture Capital, Managing Director, First Step Fund, Detroit; Kondal Reddy Jinna, Advisor, Information Technology, Senior Management Consultant, IBM. With up to 40 multi-brand vehi-

Vehicle being serviced at CarZ

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AFTERMARKET AUGUST 2011

cles being serviced at the same time in two facilities in Hyderabad, CarZ uses advanced software, StockTrack, for inventory management. “For managing an inventory for 340 models of cars of different brands and multiple variants, it is imperative to have an advanced IT system. We use StockTrack, which is established software for such purpose in the western market also,” the founder said. The company which was started with a seed capital from angel investors is now supported by a venture capitalist, IndoUS. Currently with two outlets in Hyderabad, the company plans to have service centres across Andhra Pradesh, Tamil Nadu and Kerala. It will also have special services for each city depending upon the requirements of that particular place. By next year, it plans to explore the northern parts of the country as well. Though CarZ does not have any alliance with vehicle manufacturers at present, it does not rule out the possibility of exploring opportunities at this front. “It is not possible for car makers to have dealerships in every city. But a concept like ours can enable them to have service stations in many places. Such an opportunity will be beneficial for both,” Venu said. „

Express service of CarZ


REARVIEW

Young Servicemen: Running business at your doorstep Nabeel A Khan

T

Vineet Dabas and Gaurav Shokeen

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hey are young, vibrant, intelligent and courteous, equipped with all that is required for a service industry. The two entrepreneurs based in Delhi—Vineet Dabas (24) and Gaurav Shokeen (29), come from a family which runs a local car repair workshop in the capital city. A year ago, soon after completing their education, like many other middle class families, the young duo was asked to join either family business or take up jobs in their respective fields. However, Vineet had always wanted to be “his own boss”. So eventually he started contemplating a venture and persuaded his cousin Gaurav to join in, which fi nally ensued into conception of carwashwala.com, an organisation fully dedicated to providing car washes and cleaning services at the doorstep of the customers. Talking about how the idea of opening such a venture came about, Vineet, a hotel management graduate said, “In the society where we stay, I noticed that every neighbour was quite hassled with the problem of car cleaning and other small services like oil checks. The local guy who used to do the cleaning was not satisfactory; they lacked training which sometimes caused damage to the vehicles also. From here, I got the clue.” Looking at the scope, both the partners arranged `seven lakh as an initial investment. And carwashwala.com was born. They started with two mobile phones,


REARVIEW

service equipment, a van and five labourers in early 2010. From the third month itself, they started making a profit of around `20,000 per month after deducting all the expenses, including salaries and other costs. It did not have to invest on infrastructure as it provides services at the customers’ doorsteps and did not even have to incur the cost of opening a workshop.

Services Offered The services offered include complete pressure wash, shampoo wash, polish, rubbing, scratch removal, tyre shining and bumper cleaning for the exteriors. It also offers seats dry cleaning, roof dry cleaning, interior vacuum cleaning and car perfume spray for the interiors. Within a year, they have already recovered their investments and the monthly profit has gone up to `two lakh. It has a team of 20 workers and 102 members who are paid a salary of `5,000 on an average. The demand for the service has increased manifold and they are not able to match.

The company is now aggressively looking at increasing the number of staff and expenses on marketing. It will add 20 more people to its workforce in the next three months. They are planning to reinvest around 30 percent of the profits. The company is planning to go into both below the line and above the line mode of marketing. Currently, it is providing services in Delhi NCR but it’s planning to enter Jaipur and Lucknow. The entry to these two cities would be through the franchise mode. “We have risen fast because of our services. We make random visits to the site and personally check the quality. We keep a very close watch and make sure the customer is fully satisfied,” said Gaurav Shokeen, an engineering graduate who quit his job to start this venture. Carwashwala runs the entire business with their mobiles, which are dedicated for the same, following which they send their men to the location. It has planned a different membership package for six months and one year apart from per visit. Recently, the company has start-

ed another new daily car cleaning service with a new team. The daily car cleaning service will cost `900 per month for a hatchback and services will include general car cleaning—five days a week, two vacuums and two pressure jet wash in a month. Looking at the increasing demand and expansion plans to a new cities, the company is also setting up a centralised call centre in Delhi.

Challenges However, the initiative has never been a bed of roses. In the beginning, it had to pass through many rough patches. One of the biggest challenges was to fi nd the appropriate products and equipment to be used but they were able to get over this by continuous research and consultation with the industry old hands. It is planning to increase the number of skilled, trained and experienced people in its team. Currently every team of four workers is headed by a team leader who is responsible for the execution of the work. „

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COVER STORY

SPREADING WINGS

TVS looking for nationwide presence in automotive spares business and inorganic growth opportunities. Abhishek Parekh

T

he growing vehicle population and limited capacity at the authorised service network of OEMs is compelling customers to look for viable options for parts and service outside the authorised channels. As the market grows and evolves, the spare parts distribution business is looking at a more promising future

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AFTERMARKET AUGUST 2011

in coming years. TVS & Sons, a predominantly South India-based spare parts supplier and distributor, is looking to have a nationwide presence in the aftermarket distribution business and is looking to acquire a distributor, which can provide geographical and product diversity to the company. The key factors in any potential acquisition are the


COVER STORY

network reach that the distributors can provide and product range that can be offered through distributors’ or a combined channel. “We are looking for an inorganic growth opportunity but at this stage it is difficult to predict how the spare parts distribution and retail business will evolve. We cannot ape the model followed in developed markets,” stated Vice President, Distribution Strategic Business Unit (DSBU), TVS & Sons, KR Sridhar. He added that even though a large section of the market is disorganised with little support from OEMs and component manufacturers, the growing volumes will likely necessitate a relook at the distribution models currently in vogue.

Growing Demand “OEMs are realising the importance of availability of spares in the aftermarket and that is leading to heightened interest and acceptability of spares parts distribution to the end customers. Beyond a point, it is likely to get increasingly difficult for OEM authorised service stations to cater to the growing demand,” he said. He added that there has been a change in the mindset of OEMs towards distribution of spares in the aftermarket as most OEMs have began tracking sales of spares closely in recent months. Moreover, organised players in the spares retail business with the help of distributors are beginning to appreciate the importance of standardised pricing across parts. Overall, while most two-wheeler and commercial vehicle manufacturers are keen to reach out to end customers and fulfi l the need for spare parts in the aftermarket

TVS PartSmart outlet

through dealers and distributors, there are major restrictions imposed by four-wheeler manufacturers in the aftermarket. ‘Maruti Genuine Parts’ or MGP is perhaps the only major example of an effort by an OEM to establish a brand in the aftermarket. The growing fourwheeler population and limited capacity at the authorised service stations across vehicle segments will ensure that OEMs develop a channel to reach out to the end customers through spare part dealers and third part service stations or garages.

Concerns Lack of standardisation in spare parts pricing is one of the key concerns for the spares dealers, according to industry players. Another major concern connected to this unorganised nature of the business is that the business has failed to attract the younger generation into the spare parts business. Most educated second generation

spare parts dealers are unwilling to continue in parts distribution or retailing business. “We are making an effort to bring standardisation in the spares to help dealers in knowing the ‘correct’ indicative price (sustainable price) of a product as well as contribute to curb the fake parts menace. I cannot say at this point of time how the organisation of the business will take shape but we intend to be in the business for the long term,” said Sridhar. He added that the growing vehicle population and customer awareness will lead to daily replenishment of SKUs at the outlets even though currently the stock gets replenished every two to three days or longer, depending on movement of the part. More importantly, the dealers do not have to make immediate payments for the parts and the company has devised agreements with most dealers for deferred payments and this is likely to provide a comfort level to

AUGUST 2011 AFTERMARKET

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COVER STORY

KR Sridhar, VP, Distribution Strategic Business Unit (DSBU), TVS & Sons

dealers in terms of inventory, genuineness of the parts as well as other associated concerns with sale.

Upscaling Spares There are around 2,000 parts of SKUs available at any given point of time with retailers in the TVS & Sons network including TVS PartSmart. It will take some time before customers can be provided with a ‘retailing’ experience while buying spare parts, according to a spare part dealer in Mumbai. Currently most customers would want to get parts recommended by their mechanics and get the vehicle on road at the earliest. Most fourwheeler customers continue to visit service centres for regular check ups and maintenance due to lack of trust on third party service centres. Even as passenger car OEMs have ensured restricted supply of genuine spares through distribution channels in the aftermarket, commercial vehicles and twowheeler manufacturers have been taking active interest in ensuring supply of spares to their distributors. “Automobile dealers across the vehicle segments are already fi nding it difficult to service the demand for spares and repairs.

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Factsheet zOne

TVS & Sons

of the oldest and largest parts distributors in India since 1924 zManages over 100 Suppliers and 30,000 parts zNetwork of over 9,000 retailers and fleet owners across the country zTurnover of `417 crore ($95 Million) zCAGR of 20 percent over last three years zOver 150 sales consultants in India zRobust ERP operation across the company zLarge state of the art warehouse facilities zOvernight delivery system to support customers in maintaining optimal level of inventory Moreover, the time and resources of OEM suppliers can be better spent in maintain customer relationships rather than building marketing network of their own. Spare dealers are also increasingly realising benefits of dealing with distributors as various brands/ products can be bought from the same distributors leading to efficiency in time and logistics,” Sridhar adds.

Distributors play a key role in maintaining relationships with spare parts dealers and offer advantage to component manufacturers to scale up their business. TVS & Sons is one of the leading parts distributors in India since 1924 and has been servicing dealers across the country. As a major spare parts distributor with well established presence in southern India, it procures 30,000 parts numbers or Stock Keeping Units (SKUs) of various automotive spare parts and systems from over 100 suppliers. In addition to supplying to TVS PartSmart and other spare parts retailers, it services customers through over 150 sales consultants across India.

Focus On Future One of the key focus areas for the company is to establish a robust backend and front end technology for effective management of inventory and customer demand across all vehicle categories. It currently does not have a major presence in two-wheelers and four-wheelers segment and is looking to have a relationship with suppliers and retailers to establish and expand presence in these segments. It caters to a customer base of nearly 9,000 retailers and fleet owners across India with predominant presence in Tamil Nadu, Karnataka and Kerala. It notched up a turnover of `417 crore ($95 Million) last year growing at a CAGR (Compounded Annual Growth Rate) of around 20 percent over last three years. Though evolution of the aftermarket business is still an open question, the players are keeping customer preferences on top of their agenda. „


SPECIAL REPORT

Luxury cars increasing in fleets

Rajiv Vij, MD, Carzonrent

Shambhavi Anand

C

arzonrent, the mobility solutions company which recently bought 90 customised C Class cars from Mercedes Benz India, is planning to go public in the next two years. In tandem with the growth that the fleet business is experiencing, the company, which recently received a third round of funding from BTS India, plans to expand its services geographically to Tier II and Tier III cities in the country. “The luxury car market segment is growing rapidly. Out of an annual revenue of `40 crore, we earn 25 percent from the luxury segment,” Managing Director, Carzonrent, Rajiv Vij said. Vij attributes the boost in this segment to the growth in sectors like hospitality, travel, IT, among others. “We have partnered with several airlines, IT companies, hotels and large

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AFTERMARKET AUGUST 2011

corporates in order to serve the requirements of the luxury segment in the car rental business,” he added. The car rental company, which is the country’s largest owner of Mercedes vehicles in the country with a fleet of 160 vehicles, plans to mobilise the new additions to the fleet for its customers in Delhi, Mumbai, Hyderabad, Chennai and Bangalore. This incidentally was the largest single party transaction by value made by the German luxury car maker in India. In a previous transaction in 2008, the mobility service company purchased 70 silver coloured C Class cars from Mercedes Benz India. Established in 2000, the company has diversified from car rental service to easy, radio cabs, car lease business among others and has a presence in 13 cities. Its fleet consists of several brands ranging from Maruti and Hyundai to

Renault, Toyota, BMW and Audi. The private equity company is supported by SIDBI ventures and Sequoia Capital. Vij, who earlier worked for Hindustan Motors, studied the potential of the car rental market in the country. During his international trips he also familiarised himself with the automobile rental services in other countries. Though it did not occur to him then, but eventually, while choosing an entrepreneurial venture, he decided to use his experience in the segment. In spite of challenges like lack of parking facilities, proper infrastructure, regulations and the rising fuel prices, the segment offers immense opportunities. With the development of tourism, infrastructure, hospitality navigation devices, the car rental business will get a major push. The plans are to tap the mobility market in 42 more companies in the coming future. „


A SUCCESS STORY


Photographs: Neha Mithbawkar

Nikunj Sanghi President, FADA

Captains of industry and allied business, members of the jury for ADEA 2010, panellists for the discussion on the topic: Addressing Growth Aspirations of Automobile Dealers, sponsors of the event, Editor and other senior officials of Auto Monitor & Infomedia18—our partners in this endeavour, senior officials of CARE Ratings that provided us the support by way of processing & validating the hundreds of nominations received from across the country, members of media and my fellow dealers. I welcome you all to this second edition of Automotive Dealer Excellence Awards presentation function. We have gathered here to recognise and present awards to my worthy fellow dealers who have excelled in various areas of dealership management and community service and emerged winners in various categories in this second edition of awards, ie ADEA 2010. It gives me a great deal of pleasure and satisfaction that this activity, initiated

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last year jointly with Auto Monitor, is being carried forward with added zeal and zest, as the number of nominations received for various categories suggests. This year the number of applicants has gone up by a whopping 161 percent over last year and number of states covered has also shown an increase of over 50 percent. You would be amazed to know that the number of respondents surveyed to arrive at the scores is over 12,000 and it took a team of 75 volunteers nearly 50 days to criss-cross the entire country and validate the data. Let me clarify that it is not merely a ceremonial event or grandeur mounted to simply hog the limelight and to get mileage or visibility. Grandeur, mileage or visibility apart, the core idea behind institution of these awards is to bring forth the best practices in auto retail so that these best practices could be replicated by others. At the same time, the recognition encourages the award winners to aim for higher goals and to set new benchmarks of excellence for themselves. The awards recognise not only the excellence in business but also the pioneering efforts in community service. The objective of having Green Initiative, Safety Initiative and CSR Initiative awards is to create awareness that any business cannot survive or sustain in the long run in isolation. A dealership or, for that matter, a business draws its sustenance from the environment it operates in and cannot sustain for long unless the business enjoys the goodwill and patronage of all stakeholders. It needs no reiteration that in today’s competitive environment, employees’ satisfaction is the single most important factor that can make or break an automobile dealership. Growth and customer satisfaction go hand-in-hand. It is the employees’ satisfaction that can lead to the customer satisfaction, which in turn, leads to the growth and development of

any business. Likewise, it is the quality and standard of service that differentiates and sets apart a highly successful dealership from the rest in this fiercely competitive world, particularly, as there is hardly any gap in vehicle technology available with various manufacturers with the integration of world economy. It is, therefore, appropriate that of the six parameters, Service Satisfaction Index and Employee Satisfaction Index are also the criteria, in addition to Sales Satisfaction Index, Green initiative, Safety Initiative and CSR Initiative, for evaluation of and judging the winners. It is our endeavour and ambition to make the ADEA awards the Oscars in auto retail dealership management. I am confident looking at the response that we will surely do so. I, on behalf of FADA and Auto Monitor, would like to assure you of the highest standards of evaluation and 100 percent transparency in arriving at the final outcome. With your cooperation and inputs for improvement we will strive to make these awards even better. While congratulating the winners, I hope that these awards will spearhead a movement for all-round excellence in auto retail in general. Thanks

Nominations Nominationsfor forADEA ADEA2011 2011 are areOPEN. OPEN. Send Sendin inyour yourentry entrytoday! today! Log on to www.adea.in


whelmed with the response. As a part of this initiative, I feel extremely proud to do my bit for this industry. Our magazine Auto Monitor has been serving this industry past ten years and pledges to continue in its endeavour. It is indeed a wonderful feeling to be amidst a bunch of winners. I believe that each and every dealership is a winner in their own right as they have won growth and prosperity for the entire automobile industry with their efforts.

Photographs: Mexy Xavier

Winning an award is something that is extremely motivating for anyone to work harder. It not just improves an individual quality of work but also induces others in the same field to strive harder in order to get to the winner’s position. Hence, an initiative like ADEA by Auto Monitor and FADA will not only help the winning dealerships gain recognition but also help raise bar for the entire industry. This is the second year of ADEA, as we are absolutely over-

Sandeep Khosla CEO,Publishing, Infomedia 18

Dignitaries and my dear friends. Very good evening to you all. First of all I would like to thank you for making it to this evening to celebrate the Automotive Dealership Excellence Awards. In any business, the last mile connectivity decides whether the deal ends up in a smile, or, it is miles apart from the smile. Irrespective of the brand, quality and features of the vehicles, the manufacturers are recognised and rewarded, based on the experience that the customers get, at the point of sale, which is the retail outlet. The link that the customer establishes with the vehicle manufacturer is through the dealers. And unless the dealers perform well, OEMs cannot witness volumes and profitability. Understanding this, Auto Monitor has initiated Automotive Dealership Excellence Award (ADEA) along with FADA to recognise and reward excellence in automotive retail and bring together the entire automotive value chain. This edition of Awards saw an over 160 percent increase of applicants over last year. And it took more than 5,000 man

days to complete the validation survey. I would like to thank those involved in the entire process. Now I would like to touch up a little bit about dealerships & OEMs. India has become the global launch pad to launch vehicles. Nowadays, most of the vehicles launched in the country are of global standards. Alongside, Dealerships are also getting their standards enhanced. Manpower is matched to the emerging requirements. I understand that some of the dealers are also looking at the hospitality industry to man their showrooms. However, with the increasing cost in terms of creating infrastructure and maintenance, the dealership face more challenges now-a-days. At the same time vehicle manufacturers are also facing huge challenges due to increasing manufacturing cost and competition. Therefore it calls for a new thinking to make things better for both OEMs and dealers. I would like to thank the representatives of OEMs, dealers, knowledge partner

T Murrali Editor, Auto Monitor

and sponsors who made this function a grand success. Thank you once again and have a wonderful evening.

AUGUST 2011 AFTERMARKET

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Photographs: Neha Mithbawkar

DR Dogra MD, CARE Ratings

Credit Analysis & Research (CARE Ratings) takes immense pride in associating with ‘FADA-Automonitor ADEA Awards- 2011’ as an exclusive knowledge partner for the second time in a row. CARE Ratings is a rating agency promoted by IDBI Bank, Canara Bank & State Bank of India and is the second largest & fastest growing rating agency in India. CARE Ratings is proud to be the only completely Indian owned domestic rating agency in India. We have international footprints as we have offered technical assistance to set up rating agencies in Mexico, Ecuador, Bangladesh and Nepal. We are also the only licensed rating agency to operate out of Maldives and our ratings are recognised in Mauritius. CARE is a full service rating agency and we offer all products offered by a rating agency viz. Issue Ratings, Bank Loan Ratings, SME Ratings, Project Gradings, Equity Gradings etc. Our Research division covers automobile sector extensively with reports on all segments viz commercial vehicles, cars, two-wheelers, tyre and auto ancillaries. CARE Research has

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recently released a report on the Indian tractor Industry. The concept of dealership awards is an innovative concept. I must congratulate the organisers and am pleased with the progress made by the ADEA brand since its launch last year. As you may be aware, CARE Ratings has been involved right from the concept stage in designing the questionnaire to listing of nominees for the jury to decide the winners. Revati Kasture, GM & Head of CARE Research represented CARE as a member of the jury. I am pleased with the expansion in the ambit of ADEA to 21 states from 14 states last year. It was encouraging to see such an overwhelming response received from dealers across the country. A total of 537 applications were received this year vis-à-vis 205 applications last year. The passenger car category received the highest number of applications. I am delighted to announce that, in this year’s edition, we have added an additional award category ‘Safety Initiative’ for encouraging the safety practices carried

out by the dealers in their showroom as well as service stations. I applaud the Infomedia18 team that extensively surveyed more than 12,000 respondents, which included dealership managers, employee, customers and owners and collecting exhaustive data which was analysed by CARE. While analysing such an exhaustive data set was an enormous task, CARE’s efforts were complemented with the constant support from the Infomedia18 team making the entire experience extremely fulfilling. Besides, exhaustive interaction with FADA members for designing the questionnaire and setting up eligibility criterion and reputed jury in the finalization process of shortlisted nominees involved exchange of critical inputs and ideas. At CARE Ratings, we look forward to continue our association with FADA-Infomedia 18, in execution of similar intellectually stimulating and challenging initiatives. Such assignments can be construed as an extension of CARE’s core strength which lies in analytical prowess and rigor in rating and ranking tasks.

Winners Award Categories Two-Wheelers Guru Kripa Auto, Dhanbad Nimar Motors, Khargone Three-Wheelers JS Fourwheel Motors, Alwar Bagga Link Service, New Delhi Four-Wheelers Alankar Auto Sales & Service, Patna TR Sawhney Motors, New Delhi Commercial Vehicles Talwar Auto Garages, Hyderabad Laxmi Sales & Service, Bargarh Award for Sales Satisfaction Shankar Motors, Patna Award for Service Satisfaction Shree Automotive, Kolkata Award for Employee Satisfaction KPF, Bellary Award for Green Initiative Kalyani Associates, Madurai

Description Dealer of the year Most aspiring dealer of the year Dealer of the year Most aspiring dealer of the year Dealer of the year Most aspiring dealer of the Year Dealer of the year Most aspiring dealer of the year Awards for Safety Initiative Bimal Auto Agency, Bangalore Kamal Auto Industries, Kota M/s Anamallais Agencies, Coimbatore Awards for CSR Initiative Ashok Auto Sales, Agra Fortpoint Automotive Cars, Thane


Credit Analysis and Research (CARE Ratings), is a premier Credit Rating and Information Services company promoted in 1993 by major banks / financial institutions in India. CARE’s ratings are recognised by government of India and all regulatory authorities including the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) for its rating/ IPO grading services. CARE Ratings is one of the recognised rating agency for awarding of the BASEL II Bank Loan Ratings. It has significant presence in all sectors including Banks/ FIs, Corporate and Public Finance. Till March 31, 2011, coverage of CARE Ratings has extended to more than 9,844 entities with a total value of `31,190 bn. It has the leading market share in rating of debt instruments floated by various banks/FIs. Similarly, it retains the leadership position in IPO grading amongst the fraternity of credit rating agencies operating in India. FADA along with Auto Monitor and Infomedia18 proposed the ADEA awards to be given to the best dealers (categorised on the basis of type of vehicles sold),

in four different categories viz, two-wheelers, three-wheelers, passenger vehicles and commercial vehicles. In their collective wisdom, they also proposed six broad parameters on the basis of which the dealers would be evaluated. The six parameters decided were - Purchase Experience (PE), Service Experience (SE), Employee Feedback (EF), Corporate Social Responsibility (CSR), Green Initiative (GI) and Safety Initiatives (SI). CARE Ratings, takes pride in its continuous association as an exclusive ‘Knowledge Partner’ for ‘FADA-Auto Monitor ADEA Awards for the second consecutive year. CARE Ratings’ core strength lies in demonstrating analytical prowess and rigor in rating and ranking assignments which has helped in offering unbiased third-party evaluation assessment to the winner selection process. This has enabled it in fulfilling the role of a Knowledge Partner with utmost ease and proficiency. CARE Ratings conceptualised and developed a scientific methodology whereby subjective parameters provided to it were converted into objective evalu-

ation exercise on which subsequently the scoring model could be developed. CARE’s involvement began right from conceptualising and designing the nomination forms as well as questionnaires for collecting data on the aforesaid parameters from dealers across different categories. A set of 15 questions each was designed for Purchase & Service Experience questionnaires, whereas 10 questions each formed the Employee Feedback and Safety initiative forms. A magnificent response in the form of over 263 dealer nominations was received in this exercise. Further, based on a logical and methodical process (as detailed in box below), CARE short-listed top five dealers as nominees across each category and each parameter which were presented to the high powered panel of jury members. CARE also had a representation on the jury panel instituted for selecting the final winner. CARE’s ranking model and methodology described below has imparted an impeccable degree of credibility in the selection of the ultimate winner.

Ranking Methodology • •

Design of evaluation forms ie questionnaires for all award categories Developing the scientific quantitative model for assessment of the evaluation forms. Eliminating all such nominations where the number of responses received under each parameter index was below seven. Parameter weights (on a scale of 100) were assigned to the five award parameters index i.e. PE, SE, EF, CSR, GI and SI in order of their relative importance in the entire evaluation process. Developing a 5-point scale ranging from “Poor” (1)-“Average” (2)-“Good” (3)-“Very Good” (4)“Excellent”(5) in order to capture the

feedback and satisfaction index of the respondents. Each question in respective category further had sub-options covering various parameters on the survey. In view of the criticality of certain questions as against the whole universe of questions, each question and the respective sub-options were assigned a question weight and an option weight. Score for each parameter index per respondent was arrived by totalling the product of each question score (answer * option weight) and question weight. For the respective dealer—average of the above score w.r.t to no. of respondents were considered.

• •

To arrive on a consolidated score— respective parameter scores for each dealer were added. Nominees were short-listed based on the Top 5 consolidated scores. In case of CSR, GI and SI, which involved more subjectivity, CARE inspected the dealer nomination forms along with the various supporting documents substantiating such initiatives. The jury with its vast experience and immense wisdom, provided a cutting edge in the final selection process of the short-listed nominees. Throughout the entire process, CARE’s role did not extend to either validate the data compiled or check the authenticity / accuracy of survey data.

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Photographs: Joshua Navalkar

our entire team.

Pratyush Dudani received the award on behalf of Guru Kripa Auto

Guru Kripa Auto Dhanbad-based Guru Kripa Auto is a major dealer of Hero Honda and has been in operations for the last seven years. It employs around 100 sales and support staff at its showroom and service centre in Dhanbad. Proprietor of Guru Kripa Auto, Sharat Dudani charts out his future course of action and expresses satisfaction at winning in the recently concluded ADEA 2010.

Photographs: Joshua Navalkar

What is your reaction to being conferred with the ADEA award? This honour on being judged as a winner at the ADEA 2010 is highly motivating gesture and has boosted the morale of

What is your view on the concept of the ADEA? I feel that it has been a good thought and implementation from FADA and Auto Monitor. But I personally feel that these awards need more awareness among dealers as well as OEMs alike. Though the awards have only been running into their second edition and it has a long way to go, but it certainly needs to be publicised

North India since 1985. It sells the entire range of two, three and four-wheelers by M&M and employs around 200 sales and support staff at four sales and two service stations near Jaipur. Managing Director, JS Fourwheel Motors, Nikunj Sanghi expresses satisfaction at emerging a winner at the recently concluded ADEA 2010 and prompts more dealers to participate in the process by nominating in the future editions of the awards. Nikunj Sanghi, MD, JS Fourwheel Motors

JS Fourwheel Motors JS Fourwheel Motors is one of the leading Mahindra & Mahindra dealers in

30

What do you feel is the reason for your dealership having won ADEA award this year? I feel that it is a recognition of the fact that our systems and processes are amongst the best in the industry. Servicing is one of our key strengths and we are building upon that for further growth and improvement. Additionally, our human resource related processes are also on par with the best in the industry. We also believe that to be a successful dealer we need to ensure that our manpower satisfaction comes first and that is followed by customer satisfaction. There is no major effort required in selling a trusted brand like Hero Honda but various aspect or pre and post sales service is what differentiates us from our competitors.

AFTERMARKET AUGUST 2011

What is your reaction to your dealership being adjudged as the best in the ADEA 2010? It certainly feels wonderful to be adjudged as being amongst the best as

on a prominent platforms for creating awareness and recognition. What is your message to other aspirants of the ADEA? Apart from improving and maintaining sales and service standards in the dealerships, I feel that one of the important aspects to running a successful business is involvement in local community where the dealership is operating. It is very essential to contribute to the overall welfare of the community. Additionally, environmental friendly initiatives also play a major role in differentiating the dealer and creating a brand image in local community or at a district level. What are your future plans? We are looking forward to opportunities of entering into other vehicle categories including four-wheelers and commercial vehicles but these plans are contingent upon getting right principal and appropriate location. We are also looking to expand footprint in two-wheeler business by setting up an additional service outlet. We currently have four outlets and one main showroom and we are looking at expanding further to reach larger number of customers.

it gives lot of credence to processes and policies that we have been following at our dealership. The award also validates my thought process and philosophy on how a dealership needs to be run. To what would you attribute the success of your dealership? Running a dealership of any magnitude is a team process and hence the credit goes to the entire team as a joint effort. One has to set goals in any business for reaching the next level and that is way we have been operating our business. Getting recognition for our though process is a satisfaction. What is your message to other dealers


areas like environment-friendly initiatives and corporate social responsibility. It is in the interest of all the nominees that all the facts are available before the jury members to enable them to make an informed judgement. I would say that there are many dealers who have done better job than what we have been able to achieve and the major difference could have been that we presented ourselves in a clearer manner. I would like to appeal to all dealers to participate in larger numbers and put time and effort in filing their nominations for the upcoming edition of the ADEA. The key point to remember is that unless

New Delhi based Bagga Link Service has been a leading two and threewheeler dealers of Bajaj Auto for the last three decades. It has bagged the best two-wheeler dealer award at the ADEA for the second year running and aspires to reach greater heights in the coming years. Chairman, Bagga Link Service, Prem Bagga outlines his game-plan of maintaining his edge as a leading twowheeler dealer and his future plans in an exclusive conversation.

in the national capital. Our tagline ‘Think Bajaj, Think Bagga’ has been the major differentiator over the years. We also make an utmost effort to maintain our reputation of honest dealings with our customers.

What is your feeling on winning the ADEA awards for best two-wheeler dealer? It is indeed a pleasure to win this award for the second year running. It was feels good to win recognition for one’s work. We have won similar recognition from our principals’ (Bajaj Auto). In addition to boosting confidence, such awards also confer a responsibility onto the winners to maintain the set benchmark and standards. What has helped your dealership in differentiating itself from the competition? We have tried to set up a system or process oriented work culture. We have paid particular attention to trained and motivated manpower or employees. We have managed to create a positive rapport and brand recognition for ourselves

Any message to aspirants of the ADEA awards? I guess an aspirant of the ADEA awards has to be motivated and focus on customer service and satisfaction in addition to keeping an eye of employee satisfaction. Winning awards is always a team effort and requires participation and support of entire team. One must not lose sight of the larger objective and stay focussed on the goal in a dogged manner. I hope to emphasise that trained and satisfied staff is very essential as only a satisfied lot can look after customers and enhance your image as a dealer of choice. Moreover, service centre should keep adequate inventories of spares for servicing. It is also very essential for a dealer to reinvest profits in improvement of facilities and infrastructure and not divert funds from dealership business.

you compete with the best you cannot improve yourself. What are your future plans? We recognise the fact that India is one of the fastest growing automobile markets in the world and this is likely to throw huge opportunities in the coming days for all stakeholders in the automotive sector. We are evaluating entering different vehicle categories in the coming days but it is too preliminary to say anything on this matter at this stage. One of the biggest concerns, not only for us but for dealership business as a whole, is getting appropriate manpower.

Prem Bagga, Chairman, Bagga Link Service

Photographs: Joshua Navalkar

who are aspiring to win the ADEA in the coming years? One of the key messages that I would like to give out is that one has to be equally good in practice and presentation. Apart from conceptualising and implementing the best practices at the dealerships, the dealers also need to present and quantify the initiatives in all the areas including green initiatives, corporate social responsibility, employee satisfaction or any other areas as applicable. The quantification could be in terms of providing validation or back-up documents to enable the jury to verify the claims, especially in the

Bagga Link Service are constantly looking out for growth opportunities within and outside dealership business in different geography or different vehicle segment. We already have five showrooms for Bajaj Auto twowheelers and three-wheelers and we are adding two Bajaj probiking showrooms over the next few months in our existing premises in Connaught Place and Vasant Vihar in New Delhi. We currently have seven workshops in and around National Capital Region (NCR) and have capabilities for servicing more than one lakh vehicles annually.

What are your future plans? We are reasonably happy and satisfied being a Bajaj Auto dealer. But we

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Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Saneep Khosla, CEO - Publishing, Infomedia 18 felicitating the best three-wheeler dealer Rishabh Sanghi of JS Fourwheels

Deepak Mokashi, Vice President, Hero Honda felicitating representative of Laxmi Sales & Service for the aspiring CV dealer of the year

Deepak Mokashi felicitating Sunil Talwar, MD, Talwar Auto Garages as the best CV dealer of the year

Binod Agarwal (R) taking award on behalf of Shree Automotive from Dilip Chenoy, MD & CEO, NSDC

Arun Malhotra, Sr VP, M&M felicitating the best two-wheeler dealer of the year Guru Kripa Auto’s representative Pratyush Duclani

Arun Malhotra, Sr VP, M&M presenting the award for the aspiring two-wheeler dealer of the year to FADA President, Nikunj Sanghi on behalf of Nimar Motors

Sandeep Khosla, CEO, Publishing, Infomedia 18 (L) felicitating the aspiring three-wheeler dealer of the year Bagga Link Service’s Managing Director, Prem Bagga

Panel discussion during ADEA 2010

Audience in rapt attention!

Photographs: Mexy Xavier

Photographs: Mexy Xavier

Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Photographs: Mexy Xavier

Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Sandeep Bafna of Fortpoint Automotive and Dr Ranjna Bansal of Ashok Auto Sales receiving CSR Initiative awards from Liam Donnelly, Managing Director, Arval India

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Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Abhay Kumar, VP, IFFCO TOKIO presenting the award for the Safety Initiative of the year at the ADEA

Ravi Pisharody, President, Tata Motors felicitating the best four-wheeler dealer of the year Alankar Auto Sales & Services’ Narendra Kumar at the ADEA

L Murrali Krishnan of Kalyani Associates receiving Green Initiative award from Liam Donnelly, MD, Arval

NK Rattan of Honda Motorcycles & Scooters presenting the Sales Satisfaction award to Shankar Motors’ Mohan Himatsingka at the ADEA

DR Dogra, MD, CARE Ratings presenting the Employee Satisfaction award to the representative of KPF

Ashit Jain (L) of Kamal Auto Industries felicitated by Abhay Kumar, VP- Retail Underwriting & Product Development, IFFCO-TOKIO for the best Safety Initiative of the year at the ADEA

Liam Donnelly, MD, Arval announcing winner of the Green initiative at the ADEA 2010

Winners at the ADEA 2010

Nikunj Sanghi, President, FADA addressing the gathering

Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Photographs: Mexy Xavier

Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Photographs: Neha Mithbawkar

Ravi Pisharody, President, Tata Motors felicitating the aspiring four-wheeler dealer of the year TR Sawhney Motors’ representative at the ADEA

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Photographs: Neha Mithbawkar

Additionally, we have been able to instil a sense of pride in our employees and they are a highly satisfied lot. We have a very low attrition rate compared to the industry average.

Ravi Pisharody, President, Tata Motors felicitating Alankar Auto Sales & Services’ Narendra Kumar

Alankar Auto Sales & Services Patna based Alankar Auto Sales & Services is a key Maruti dealer in operations for the last four years or so. It employs around 176 sales and service staff at two showrooms and service centres. Ashok Priyadarshee chalks out the future plans and expresses satisfaction at emerging a winner at the recently held ADEA 2010 ceremony in Mumbai. What is your reaction to being adjudged as the winner in the ADEA? Winning this award has instilled a significant amount of pride in us as a team. More importantly, this award has enhanced our image as a dealership and we have been able to communicate this achievement (winning ADEA) to our potential customers and have got mileage in terms of additional sales. What factors, in your view, has helped you in differentiating yourselves from competition and winning ADEA? Our customer centric attitude is one major factor that has helped us in differentiating ourselves from the competition. We had the best customer service ratings from Maruti last year as well as this year and that is ample evidence of our focus.

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What is your view on the concept of the ADEA and suggestions on improvement/ changes, if any? I think one of the aspects that ADEA committee could consider implementing is to actively seek advice and take into consideration the perspective of vehicle manufacturers for nominating dealers. The dealers, who have been outperforming, from manufacturers’ perspective, should automatically qualify for the ADEA without them having to nominate themselves for the award. There may be several dealers who may not have nominated themselves due to lack of awareness or any other reasons and such dealers have not been part of the process. Hence, OEM’s support is vital for such initiative to reach its logical conclusion. But that apart the overall process and parameters on which all dealers are judged seems to be fairly objective and fair. These parameters are adequate reflection of the dealership business and are suitable in judging a dealers’ performance. What is your message to fellow dealers aspiring to win the ADEA in the coming years? I feel that in today’s competitive scenario, it is very vital to ensure that a customer leaving your showroom or service centre leaves with a very content mind. There should not be significant divergence in terms of what was communicated or committed to the customer and what was delivered. There are various soft skills that could be imparted to sales and service staff helping them to handle customers in a better way. Selling

a good brand is never a problem but customer connect comes from connecting at a conscious and sub conscious levels. For instance, we impart training to our sales staff by educating them on history and culture of various parts of Bihar and this enables him to speak the language of the customer and provide the customer a comfort level and sense of belonging. On the other hand, a dissatisfied customer walking out of a dealership or service centre translates into a poor image for every employee of the concerned dealership (or for the dealership as a whole) and could turn into a disaster in the long run. We have gone out of the way and rewarded employees who have pointed out a dissatisfied customer. We are trying to institutionalise this culture and mindset in our business and are hoping to emerge as a customer centric organization by doing so. What are your future plans? We have been growing by around 80 to 90 percent YOY in terms of revenues and volumes over the last couple of years and hope to continue with this positive trend. We are looking to have widespread and elaborate service infrastructure in place compared to what we have now. We have identified post sales service as a key point of differentiation and we are looking to build up on our current position. It is much better to have more service presence rather than having more number of sales outlets. The customer needs to recognise us on the strength of our service network rather than our sales reach. We are entering into two-wheeler and commercial vehicle segment as well in the near future. We are also looking to set up a training institute from which we could ourselves absorb a large chunk as well as provide trained manpower to the industry.


approach and involve all stakeholders like OEMs, suppliers, customers, employees then we are likely to get recognition as a dealer of choice.

What is your reaction to being adjudged as a winner in the ADEA 2010? It feels really great to win a coveted award and be recognised as one of the best four-wheeler dealers in the country. Another feeling I have is that we as a dealership have to become more responsible in the future after getting this recognition. We have to maintain and upgrade our standards in terms of service delivery, employee treatment, customers experience and all other aspects going into making a successful dealership.

What is your view on the concept of ADEA and any suggestion for improvement/ changes? The concept is well-thought and executed and covers most aspect of the dealership business. What I feel is required now, is to create awareness of the concept within and outside the automobile industry through different channels and on different platforms. I also feel that it would be better if dealers gather at regional levels to understand different parameters and learn from best practices, both past and current ones, to implement the same. I feel this involvement of old and new generation dealers pre and post ADEA would help in serving the true purpose of this esteemed awards. The point that I am trying to make is that there has to be sharing of learning and implementation of best practices at national and regional level through ADEA and FADA.

What do you feel is the key differentiating factor that has set your dealership apart from the competition? We have always sought to keep parallel focus on quality and quantity in terms of sales and service delivery. We have re-looked at every aspect of service delivery and analyse what has been working in terms of customer expectations. We have always sought to adopt a holistic attitude in running our business in terms of environment friendly initiatives, social or community involvement, customer convenience, employee recognition and reward and various other aspect that are critical to a dealership business. When we adopt a holistic

What is your message to the dealers aspiring to win recognition at the ADEA in the future? The key message is that whatever we have conceptualised and executed at our dealership, needs to be bettered by any other aspirants (laughs). That is because all winners have created a minimum standard in their respective categories and this has to be bettered. To my understanding, we have to set benchmarks year-after-year through platforms like ADEA and go one up on them. It is only through this thought process that we would be able to bring excellence in the dealership business and purpose of creating a platform like

Photographs: Joshua Navalkar

New Delhi based TR Sawhney Motors bagged the award for the most aspiring four wheeler dealer at the recently concluded ADEA 2010 in Mumbai. It has been a leading Maruti dealers for the past two decades and employs 1200 sales and support staff at ten sales and service outlets in National Capital Region (NCR). Chief Executive Officer, TR Sawhney Motors, Rajiv Sawhney speaks about his experience at the recent ADEA awards and the future plans for his dealership.

Rajiv Sawhney, CEO, TR Sawhney Motors

TR Sawhney Motors

the ADEA would be adequately served in letter and spirit. What are your future plans? We have prepared a business plan for next three years in order to reach the next level of growth. This would include upgrading and adding to existing infrastructure, increasing the number of outlets, maintain and outperform our current position as the number one ‘Truevalue’ (Maruti’s used car brand) dealer on all India basis and increase our employee and driver training facilities. We are looking to automate most or entire processes on front and backend at our dealership and service stations by 2012-13. We are looking to be a process-based business rather than personality-based dealership as this business has come to be characterised of late. This will require a major shift in mindset of everyone concerned but it will be beneficial to everyone over the long term. The key benefit of this initiative is that the concerned people at all levels would be responsible and answerable for his/her actions.

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Photographs: Joshua Navalkar

chosen from among the best dealerships in the country at the ADEA 2010? It’s a proud feeling of being at the top in the country in the CV category and gives lot of encouragement to carry on the work and achievement received from the all India dealers’ body.

Sunil Talwar, MD, Talwar Auto Garages

Talwar Auto Garages Hyderabad based Talwar Auto Garages, a Volvo Eicher dealer, won the award for the best commercial vehicle dealer at the recently concluded ADEA 2010. It has been in operation for around 25 years and employs around 350 sales and service staff at three sales and six service stations in and around Hyderabad. Managing Director, Talwar Auto Garages, Sunil Talwar expresses his feeling at emerging the best CV dealer at the ADEA and the future plans for his dealership.

Photographs: Neha Mithbawkar

How do you feel about your dealership

What is your view on the concept of ADEA and what do you feel are areas in the organisation and parameters which require improvement? The concept of honouring dealership across India is a wonderful initiative by the ADEA organising committee and is a really a great welcome feeling for recognition to all dealers. While judging the

Bargarh, Orissa-based Laxmi Sales & Service is a leading commercial vehicle dealer of Tata Motors. It has been in operations for the last three years and employs a staff of around 90 employees at seven sales and one service outlets. Proprietor of Laxmi Sales & Services, Ravindra Kumar Agrawal elaborates on his plans for expansion and maintaining high standards set for his dealership in the coming years. Deepak Mokashi, VP, Hero Honda felicitating representative of Laxmi Sales & Service

Laxmi Sales & Services

36

What would you attribute your success to? I am sure that the jury of judges who would have chosen us as the top winner would have measured our growth from the set parameters and found us to be the best. I personally believe that our adherence of the business ethics and employee/customers satisfaction have helped us to achieve this success. I would like to add that we are the overall highest selling dealer for Eicher for the past 17 years and that may also have been one of the wining criteria.

AFTERMARKET AUGUST 2011

How do you feel about your dealership chosen from among the best dealerships in the country at the ADEA 2010? I feel it’s like a dream come true for the entire team at Laxmi Sales & Services.

dealership, some of the innovative ideas being adopted in the respective showrooms and workshops, both on the front office and also in improving customer satisfaction by using hi-tech mechanical usage of equipments should be taken into consideration and perhaps granted extra weightage. What is your message to ADEA award aspirants? My only message to fellow dealers is to keep working—don’t look back—successes will come sooner or later. Also it is important to plan your strategy ethically, not only to earn money but also to help environmental and also social causes. What are your future plans for your dealership for growth and improvement from existing level? We are consistently increasing our growth in the workshops so has to be always closer and within reach of the customer. We are looking to bringing innovative mechanical improvement within the workshop area for efficiency and customer satisfaction level from the existing levels with the motive of doing the works ‘First Time Right’, which will make the customer ride that extra mile.

What would you attribute your success to? We have paid particular attention to addressing customer satisfaction and adhering to the best of the practices to manage our automobile dealership business. We feel that could be the only reason that has set us apart and led us to emerge as the winner in 2010. What is your view on the concept of ADEA and what do you feel are areas in the organisation and parameters which require improvement? The concept of ADEA is a noble one. We would like propose a new index or parameter, in addition to the existing


Kolkatta-based Shree Automotive bagged the award for best service initiative at the recently concluded ADEA 2010 in Mumbai. It is a major Ashok Leyland dealer operating in the eastern region for around a decade and employs around 170 sales and support staff at its 10 sales and four service outlets in and around Kolkatta. Director, Shree Automotive, Saurabh Kedia speaks about the future initiatives for his dealership and what winning at the ADEA 2010 means to him. How do you feel about your dealership chosen from among the best dealerships in the country at the ADEA 2010? We are highly honoured and motivated after having received this coveted award. What would you attribute your success to? We feel the award is a culmination of the effort made by our wonderful team and the commitment to excel in their Bellary, Karnataka-based KPF is a leading Maruti dealer in southern India. It has been in operation for around a decade and employs around 130 sales and support staff at two sales and two service outlets. Chief Executive Officer, KPF, VK Vijayan speaks on the format of the ADEA and elaborates on the future plans of the dealership. What is your reaction at being adjudged the winner at the ADEA? The experience has been very encouraging and we are thrilled at winning the award at an all India level. We are hoping to maintain the standards

What are your future plans for your dealership for growth and improvement from

existing level? In addition to maintaining our current edge, we want to reach newer heights in post sales customer relationship management and we have identified this as a focus area.

activities, with customer centric as our basic mind set. What is your view on the concept of ADEA and what do you feel are areas in the organisation and parameters which require improvement? This will give suitable platform for many aspiring dealers to perform better. The ADEA organising committee should continue with this concept. Though at the same time, we feel that the judging process could be made more transparent for the participating dealerships. What is your message to ADEA award aspirants? Our key message to dealers aspiring to win at the ADEA in the future is to work with focussed mind towards the goal and you will achieve it. What are your future plans for your dealership for growth and improvement from existing level?

Binod Agarwal (R) taking award on behalf of Shree Automotive

Photographs: Mexy Xavier

What is your message to ADEA award aspirants? The one message we would like to give

to our fellow dealers and ADEA aspirants is that lets take the level of competition to a newer height.

Shree Automotive We are hoping to work towards positioning Shree Automotive with global standards in terms of facilities and processes. We are also looking to renew our focus towards social upliftment of the backward districts where our dealership has sales or service outlets as a part of the plan to improve our CSR quotient.

and win more accolades in the future as well. What is your view on the concept of the ADEA and what improvements are required to be carried out or implemented? In my view, the concept is well thought and executed. But I wanted to point out that it would be better if dealerships are segregated in terms of rural and urban dealers. This may allow like-to- like comparison between dealerships in metros, mini-metros, Tier II and III towns and so on. It may also encourage more dealers to participate in the

Rahul Modi of KPF at ADEA 2010

Photographs: Joshua Navalkar

indexes, christened ‘Post Sales Customer Relationship Index’.

KPF

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entire process and allow more dealers to win awards in various categories. Perhaps an initiative like segregating dealerships selling 1,000 cars needs to be compared with similar sized dealerships while the one selling 5,000 cars could be compared likewise. The main issue is to have a level playing field and like-to-like comparison for the sake of fairness and transparency.

Photographs: JJoshua Navalkar

What is the major factor, in your view, which has led to your dealership being adjudged the best dealership in

L Murali Krishnan, MD, Kalyani Associates

Kalyani Associates Madurai-based Kalyani Associates is one of the leading dealers for Honda Motorcycles and Scooters. It has been in operations for over 25 years and is also a leading dealer for garage equipments, gensets and other engineering and consumer goods in Madurai. Managing Director, Kalyani Associates, L Murali Krishnan spoke about his feelings at being recognised for best green initiative and his future plans. How do you feel about your dealership chosen from among the best dealerships in the country at the ADEA 2010? We felt elated when we were invited as one of the nominees in the

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employee satisfaction? We have paid particular attention to keeping our employees satisfied and motivated through attention to details like timely payment of salaries and other perquisites, regular assessment, training and other welfare measures. Fostering a team spirit among employees is very essential. It would have been much better to have a wider participation from much larger number of dealerships in the ADEA and being adjudged as the winner in the ADEA.

What are your future plans? We are facing severe limitations in terms of the area of service operations and we are looking for ways to enhance the same by having larger servicing bays as well as having one service outlet outside each district of operations. We are looking to diversify into different vehicle categories in order to achieve growth but it would be dependent on various factors like location, vehicle brand and other considerations.

Environment and CSR categories. While the announcement was made about the winner, we were thrilled to know that our dealership was ranked number one in the whole of the country. It was a nice experience to have an assessment about ourselves from the objective point of view. We are happy that we are duly recognised for the efforts taken in these fields.

corporate social responsible activities.

What would you attribute your success to? The main attribute to our success is simply being honest with our initiatives. Whatever initiatives, be it environment or CSR activities, we always remained faithful to our conscious and true to our mind. With passion, we wholeheartedly committed ourselves to these initiatives and the results automatically turned fruitful and meaningful. What is your view on the concept of ADEA and what do you feel are areas in the organisation and parameters that require improvement? The concept of ADEA is an excellent motivating initiative by FADA. This prestigious award recognised all over India has turned to be sought after award by automobile dealers. It is promoting healthy competitiveness among dealers for their betterment and commitment towards

What is your message to ADEA award aspirants? The reason what we think is the key factor for bringing success in ADEA is ‘Sincerity’ in CSR activities. Whatever good we wish to do have to be done without expecting a favour out of that activity. The seeds you sow today may not directly benefit you, but you will have the satisfaction of benefiting others. So be sincere in all that you attempt to offer. What are your future plans for your dealership for growth and improvement from existing level? In 2010, we were nominated for environment and CSR and eventually awarded for environment. The encouragement and recognition from the ADEA has increased our commitment furthermore to these noble causes. Subsequent to ADEA, our tempo in carrying diverged initiatives in these areas has improved considerably. With much better refinement, we are executing different activities in these areas. This year, we have annexed schools and college as well in our green movement and thereby our commitment is furthermore strengthened by bringing in the student community into our circle.


FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS MEMBERSHIP APPLICATION FORM To,

For FADA Office use only

Federation of Automobile Dealers Associations 805, Surya Kiran, 19 Kasturba Gandhi Marg, New Delhi 110 001 Phones: 011-6630 4852, 4153 1495, 2332 0095 Fax: 011-2332 0093 E-mail: fada@airtelmail.in

Approved on Signature S. No

Dear Sirs,

*TYPE OF MEMBERSHIP : ( Tick

2)

the correct box) Supporting Member

Individual Member

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.

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Commercial Vehicles :

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2-Wheelers _______ 3-Wheelers _______

We agree to abide by the Rules and Regulations of the Federation of Automobile Dealers Associations and amendments/alterations, if any, thereof from time to time. We enclose payment towards the membership subscription and the entrance fee as below: Amount (Total): Rs. Cheque/DD No. & Date

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(NOT TO BE FILLED UP BY APPLICANT)

RECOMMENDED BY: (by any two FADA Members) 1)

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--------------------------------------------------------------------------------------------------------------------------------------MEMBERSHIP SUBSCRIPTION

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* For two-wheeler dealers, Rs. 1,000/-, Rs. 2,000/- and Rs. 15,000/-, respectively. Note:Payment should preferably be made by way of Demand Draft in favour of Federation of Automobile Dealers Associations payable at Delhi/New Delhi. Please add Rs. 100/- towards bank charges in case the payment is made by way of a cheque drawn at place other than Delhi/New Delhi. *Note on Types of Membership : Association Member:

All Associations or bodies of the Automobile Trade in India who represent the Motor Vehicle Trade exclusively or in combination with allied trades.

Individual Member:

Individuals, firms and companies, who are authorised vehicle dealers of vehicle manufacturers.

Supporting Member:

Individuals, firms and companies, not falling in the category of authorised vehicle dealers, irrespective of their trade or vocation, interested in the advancement of the objects of the Federation as described and wishing to support it.

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Individuals, firms and companies engaged in automobile and/or allied trade or vocation, who wish to make a onetime payment which would include entrance fee and subscription for Life Membership.

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About 10,000 assignments with a volume of around 40% of India’s GDP RATING PRODUCTS

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Corporates • Corporate Debt, Bank Loan, Issuer, Corporate Governance, Recovery

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IN CONVERSATION

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AFTERMARKET AUGUST 2011


IN CONVERSATION

Upgrades, Expansion Plans

On Charts

Bangalore headquartered Base Batteries is expanding its product portfolio to tap the unexplored segments in both automotive and non-automotive industries. In addition, the company is also setting up a new plant to augment its capacity as the demand for its products is increasing. The new plant will be ready by the end of 2012, which can add another 325,000 batteries per month, Chief Operating Officer, Base Batteries, Aditya Arora tells Bhargav TS.

Can you tell us about the batteries that you make and their applications? The batteries that we make go into almost all segments possible in India; we have one of the largest product portfolios dealing with two-wheelers, passenger cars, tractors and trucks. We also make two to three different types of batteries for invertors. In addition, we make solar batteries and special tubular batteries for the industrial applications. To increase our product portfolio, we are now entering into the railway, telecom and export market as well. Could you elaborate a bit? We are working on newer segments that come into the automobile industry. We are also designing a two-volt battery for applications in telecom and railways. In the case of solar batteries, we are working on some improvements. As part of diversiďŹ cation we are entering in the manufacturing solar panels.

Can you update us on the new manufacturing facility coming up in Hosur? We have invested around `432 crore in our new Hosur plant, which is being constructed in a land area of 180 acre. The super structure will be completed in another six months and the plant will be ready by the end of 2012. We can produce around 325,000 batteries per month. What is the capacity of your Solan facility? Currently our capacity is 60,000 per month and after launching our new facility in ďŹ rst phase, the capacity will be 125,000 batteries per month when the plant is fully operational. Please elaborate on the trends in battery manufacturing and how are you gearing up to address the issues? Battery manufacturing is a fairly competitive process, where chemical reaction takes place with a high

quality metal that goes inside the unit. We believe in creating higher quality products so we are innovating constantly by using better active materials and alloys to improve the longevity of the battery. Alongside, we are also trying to work on accessories, which will make the product user-friendly, like giving alerts when the battery is low. Also, we are working on compact boost-charger, which enables the battery to get fully charged in two hours. Does your clientele include OEMs? Due to capacity constraints we are not able to supply to OEMs though they have approached us. Currently, we are present only in the aftermarket. Can you elaborate on your plans for the current year? We will be launching few new products; we are also innovating on pigments since we are not an OEM supplier and we work extensively to cater to the aftermarket. „

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FOCUS

Shambhavi Anand

E

ven as the Automotive Component Manufacturers Association (ACMA) estimates a loss of around `22 billion per annum to the government exchequer due to counterfeiting, the traders are driven by the demand for cheap and spurious spare parts, which helps them increase their profit margin. Traders unanimously blame the spread of spurious parts to the demand side—customers. Most of the customers are actively looking to get cheaper spare parts. The genuine parts are expensive and many vehicle owners do not want to put in that much of money on small components, said most of the traders who did not wish their identity to be revealed. “We do not suggest people to buy naqli (spurious) products. But if they ask for it, we have to provide them with it. It is the question of our bread and butter also,” another wholesaler of auto components based in Kashmere Gate, New Delhi, and a major hub for such products said. The study by ACMA on the Indian automotive aftermarket agrees with them. According to the study, there are cases where consumers buy counterfeit com-

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Soumitra Bhattacharya (centre), Chairman for Committee on Consumer Affairs & Aftermarket, ACMA, with Vinnie Mehta Executive Director-ACMA along with other members

Traders focus on profits as ACMA intensifies drive against counterfeit components ponents to save on the cost. The spending on vehicle maintenance during the initial two years of the vehicle’s life is at around 35 percent of the average during the peak spending period, which generally spans from the end of warranty till the vehicle is 13 years old. The average annual maintenance falls to around 45 per cent of the peak values as most of the maintenance work is aimed at keeping the vehicle ‘just road worthy’ and the use of non-genuine parts goes up and regular service and maintenance cycles become much longer. The study finds that many components remain ‘in-use’ well beyond their recCounterfeit camshaft ommended life and

the use of spurious components is high. Though there is some variability across products, only about 60 to 70 per cent of the available components are genuine—OEM (Original Equipment Manufacturer) spares, OES branded, non-OES branded or imported. ACMA’s estimates suggest that the contribution of fake components is 36 percent of total value of the components in the aftermarket. Parts most susceptible to counterfeiting are fi lters, bearings, steering arms, tie rods, brakes, brake linings, bumpers, alternators, wipers and lamps. To counter the alarming rise in the demand, ACMA has been organising a series of campaigns to spread awareness about the impact of spurious auto components. Throwing light on the typical behaviour of an Indian consumer on maintenance, an eminent


Comparison between original & duplicate parts

FOCUS

member of Delhi Motor Traders’ Association said, “It is not about the lack of purchasing power. After all, people do have money to spend on expensive, branded clothes and accessories. It is about choices and priorities. This also adds to the convenience of traders as the margins on counterfeit products are higher than genuine parts.” But the manufacturers’ association suggests that in most cases the consumer is not aware that he is buying fake parts as the fi nishing and packaging closely imitates original products. To spread awareness on usage of genuine auto components and curb the menace of counterfeiting, ACMA is organising campaign and road shows throughout the country. Through initiatives like ‘Asli-Naqli’, in which it helps people distinguish between spurious and original components, the association has been able to sensitise the consumers on the risks that they undertake towards life and property by using spurious components. “The auto component counterfeiting market has been estimated at `122 billion with loss to government exchequer of `31 billion. Based on the primary research, it is estimated that around 20 percent of the total road accidents in India can be either directly or indirectly attributed to the use of counterfeit automotive parts. Use of counterfeits resulted in 25, 400 deaths and more than 93,000 injuries during 2009,” Executive Director, ACMA, Vinnie Mehta said. Several component manufacturers like Talbros, Federal Mogul, Bosch and Lucas have joined hands with the association in helping it bring about awareness. Some of the important measures that will help in combating the menace are implementation of GST and re-orientation of the Motor Vehicles Act as Automotive Components Anti Counterfeit and Product Safety Law with a comprehensive definition of counterfeit or spurious auto components. The expansion of OEM authorised service stations and organised multi-brands service chains will also help in the usage of genuine products, ACMA suggested. „

AUGUST 2011 AFTERMARKET

45


EXTRA MILE

‘It’s a company owned by family

but managed by professionals’ Shambhavi Anand

E Vimal Chordia Director, Khivraj Motors

46

AFTERMARKET AUGUST 2011

stablished in 1959, 60 years ago, Khivraj Motors is a household name in Chennai today. The company which was started by the founder, Khivraj Chordia was fi rst set up as a fi nancial solution provider for automobile purchase. Today it is associated by the best automobile brands in the country – Bajaj Auto, Force Motors, Man Trucks, Yamaha and Chevrolet. Renault is the latest addition to the list.

The company which is named after its founder, Khivraj Chordia, is today run by the fourth generation of his family. “It is a family owned but professionally run business,” the founder’s great grandson and Director, Khivraj Motors, Vimal Chordia said. The company which has a long legacy in the automobile business is the biggest dealer for Force Motors since 1995 and ranks amongst the top five for Bajaj Auto, two-wheeler and three-wheeler in Bangalore and Chennai. The company also


EXTRA MILE

has modern automated facilities and systems in place. With its experience and association with the who’s who of the commercial, two-wheeler and now the passenger vehicle segment, Khivraj Motors has helped in developing an understanding of diversity in the nature of customers and their psychology in these diverse areas. “We have mastered the art of personalised selling. Systems might be in up to the mark and modern anywhere. But one needs to understand the psychology and needs of the customers in detail. Some might be timid and confused while others will be knowledgeable, confident and would have done their research well. A sales team needs to understand that and deal with them accordingly,” Chordia said. There are siginifcant differences in customer profi le for Khivraj Motors. It ranges from elite brands like Chevrolet and Renault to twowheelers to commercial vehicles of Bajaj Auto, Force Motors and Man Trucks. The secret lies in following the systems and procedures laid down by the manufacturing company. Following their well-researched

We have mastered the art has one dealership of Yamaha, Man Trucks, Chevrolet and Renault each in Chennai. Right from its inception, the company believed in walking an extra mile for the vehicle manufacturer with which it has been associated. It sells up to 500 three-wheelers and around 1,400 two-wheelers for Bajaj every month. It was probably because of the knack of selling that it did not confine itself to being a financial solution provider and entered the business of selling vehicles. Being partner to so many reputed names in the country, the company

of personalised selling. One needs to understand the psychology of the customers. Also, the customer profile is wide—it ranges from elite brands like Chevrolet & Renault to Bajaj Auto. The wellresearched standards and training modules helps in gaining expertise in these segments.

standards and training modules helps them in gaining expertise in each of these segments. Attitude is another important thing that one needs to build in a business as diverse as Khivraj’s, according to Chordia. “We can also assure our customers that we will provide them with a globally benchmarked experience in sales and after sales service,” he said. Operations, fi nance and marketing are the three heads in which the company pays attention to. Each one is headed by a person in the family and managed by a team of professionals operating under their guidance. To ensure speedy supply of vehicles to the customers and to keep them from waiting, Khivraj Motors maintains a huge stock of vehicle inventory – two-wheeler, passenger vehicles, three-wheelers and truck. It has a warehouse for Man Trucks covering about six acres. This warehouse is located in Chennai and is used for the storage of both passenger vehicles and commercial vehicles, predominantly Man Trucks. For stacking two-wheelers, it has a storage space near to the Yamaha showroom in Chennai. It has another warehouse in Bangalore which is spread across a land area of four acres. Khivraj Motors has won several accolades from the vehicle manufacturers for its excellent performance when it comes to playing an interface with the customer on behalf of the companies. But the biggest achievement is that reputation that it has been able to establish over a period of time. Its identity has become synonymous with the name of the companies that it works for. And that is the primary reason why so many companies entrust their reputation with it, Chordia said. „

AUGUST 2011 AFTERMARKET

47


EXTRA MILE

Realigning Customer Service Akmal Rahman B

M

S Ravindranathan Managing Director, MPL Ford

48

AFTERMARKET AUGUST 2011

PL Ford, the fi rst authorised dealer for Ford India, has grown from strength-to-strength by adopting best practises that it has garnered over a period of time. The company started by S Ravindranathan along with his brothers, has transformed from a 100-sq ft office with two employees to six showrooms and three service centres in Chennai and Pondicherry, which now employs about 1,200 people. The company that won the best dealership award for excellence from Ford India, now sells around 400 vehicles and services 4,500 vehicles every month. From the fi rst day, the company believed in three basic practices to mark them as market leaders: “We believe that the customer is God; we worship our employees and we never criticise our competitors,” said Managing Director, MPL Ford, S Ravindranathan. By playing out an advisory role for its customers, it provides enough information about the vehicle.


EXTRA MILE

The MPL showroom (Right) At the showroom inauguration

“Customers may come to collect some information about the vehicle or maybe the customer has done enough research from the competitors and come here with some idea to compare the vehicle’s features. We don’t pressurise the customer to buy the vehicle, we allow the customer to relax, settle down, then walk around to see and get a feel of the cars, which helps them to take the right decision,” he added. The company also focuses on recruiting the best talent, gives training, and motivate the employees to satisfy the customers’ needs. “Ours is an employee-friendly company; we give importance to our employees, which makes them work actively,” Ravindranathan stated. The company believes in building a large knowledgeable, vibrant and motivated team to sell its vehicles in today’s competitive market. “We

always are in search of knowledge and business, so we develop innovative concepts to sell,” he added.

Customer’s Delight MPL Ford has a separate sales counter for sales enquiry, an accessories counter, children’s play area and a customer lounge for customer conveniences. The interior of the showroom is painted blue adorning the emblem of Ford blue oval and other lifestyle images. The showroom also has support facilities such as discussion tables, pantry, and valet parking for customers. A huge pylon signage is displayed outside the dealership. What’s more, ample space is provided for visitors to park their cars at the showroom. Ravindranathan stated that, “If I were a customer, then I would definitely get confused about which

vehicle to purchase because of the wide range of choices in the market; the features and the prices of all the vehicles in India manufactured by leading global car manufacturers are almost same. Our sales consultants play an advisory role and explain the vehicle to the customer in depth”.

Expansion Plans To meet the growing demand for Ford products in the country, and in readiness for new model launches, MPL Ford has embarked on an aggressive market representation programme. It has organised road shows, events and door-to-door camping besides, display cars in shopping malls and IT companies to create the awareness about the product. “We go to shop owners in commercial areas and speak about our products and offer them test

AUGUST 2011 AFTERMARKET

49


EXTRA MILE

drives which help us increase the sales” he added.

Customer Orientation MPL Ford has become the fi rst Ford dealer in the country to receive ‘Quality Care’ certification adhering to Asia Pacific standards and benchmark. Quality Care accreditation is a recognition to the dealer for placing processes and systems in place which ultimately results in enhanced total customer satisfaction and customer loyalty, eventually leading to substantial business growth. It provides centralised appointments as per customer choice of workshop dates and time, a 15-minute interactive reception process and a joint inspection of the vehicle along with the customer, which helps to schedule the agreed completion time of car delivery with the customer. The company helps the customers to avail the pricing menu which includes the cost of spares, labour and lubes. The job is taken once the customers agree to the total cost. The service advisor notifies the customers of any alteration to price quotations, prior to the execution of job. The customers’ concerns are resolved to their satisfaction and cars are checked for quality of repair works and delivered to them in a clean condition. The company follows-up with the customers and calls them for procuring feedback on the jobs done.

50

AFTERMARKET AUGUST 2011

Ravindranathan said “We have roadside assistance and an accident helpline, which is available 24/7, 365 days a year. It also has services like vehicle towing, changing of flat tyres onsite, fuel delivery if the vehicle runs out of fuel, jump starts for dead batteries and lockout assistance to unlock doors.” The company also offers a service called My Car Care that helps the custom-

We don’t pressurise the customer to buy the vehicle, we allow the customer to relax, settle down then walk around to see and get a feel of the cars, which helps them to take the right decision er with vehicle care suggestions, maintenance schedules, incentives and offers, owning and driving tips and service logs.

3S Chennai Facility The company is planning to start a new outlet with 3S (sales, service and spares) facility in Chennai, which will have 6,000 sq ft showroom with a 20,000 sq ft service centre. It will be state-of-the-art facility and the company will be guided by Ford to build it with the vehicle manufac-

turer’s technology and design. “We are going to open the new outlet in September with an investment of `one crore for the facilities,” he said. The former Chairman, Ford, Sir Alex Trotman, inaugurated the first MPL Ford showroom in 1996 and Chairman, Ford, Bill Ford Jr, inaugurated the current flagship showroom in 2006. “We are proud to be associated with Ford India and it’s an honour that Bill Ford Jr inaugurated our facility,” he added. Ravindranathan believes that the customer comes to the showroom because of the proximity to his/her residence, thus if the workshop is also available at the same place, it would be convenient for the customer to utilise the 3S facility. Altogether, if a customer buys a car, he/she will also get access to the service, all at one place The new MPL Ford facility will represent Ford’s Brand@Retail and it will be designed to provide enhanced customer service and convenience. “We hope to offer the best in class service to Ford customers, setting a benchmark in the region” he said.

Future Plans The company expects to increase its sales from 400 cars to 3,000 cars a month, its service from 150 to 1,000 cars a day. It has also planned to recruit 2,500 employees within three years. What’s more, MPL is planning to expand it wings to Kerala by setting up a new Ford dealership and an Ashok Leyland dealership for light commercial vehicle. It is also planning to procure a two-wheeler dealership in the coming years. The company also owns a Mahindra dealership and has three outlets in Chennai, which sell around 300 vehicles every month and service 120 vehicles a day. „


AUTO POINT

Rise in diesel prices, interest rates to impact profitability Revati Kasture Head, Industry Research, CARE Research Vishal Srivastav Analyst, CARE Research

The recent price hike in diesel has exerted an additional burden of five paisa/km on the operating cost squeezing the operating margins by almost 100-120 bps. Freight operators would gradually pass on the rise in the operating cost to the customer, resulting in an around four-five percent rise in the freight rates in next one-two months.

T

he road transport sector has been the backbone of Indian freight transport industry, contributing more than 60 percent share in the total freight movement. Hence, the state of the road freight transport industry is directly correlated to the macroeconomic environment in the country. During the last eight-nine years, buoyant economic growth, investment in infrastructure and buoyed trade scenario kept the freight demand strong, barring FY08 and first half of FY09. Wide coverage, flexibility in operation coupled with advantage of last mile distribution has enabled roadways to dominate the freight transport industry. Furthermore, aggressive investments made by the government by improving road infrastructure in the country during last decade through various projects like the Golden Quadrilateral and North South East West (NSEW) corridor, has also fuelled growth in road transport industry.

Strong freight demand ensured healthy profitability CARE Research believes that vehicle utilisation and fuel costs

are the key parameters that determine transport operators profitability and freight rates. Buoyed trade demand during FY10 and FY11 ensured high utilisation rates and consequently healthy revenue growth for freight operators. Furthermore, stability in diesel prices helped to curtail sharp movement in freight rates during last two fiscals.

Recent hike in diesel prices to push freight rates; SFOs to be more sensitive Diesel costs constitute around 40-45 percent of net sales of a freight operator. The year FY12, brought stiff challenges for the domestic freight transport industry as on one hand, the rise in interest rates have raised the capital cost of a freight operator, while on the other hand, the recent hike in diesel prices has exerted additional burden on the profitability. CARE Research foresees profitability of the industry to come under pressure in short run and would impact the most to Small Freight Operators (SFOs) more than Large Freight Operators (LFOs). The

Comparison business model for LFO and SFO

LFO

Source: CARE Research

52

AFTERMARKET AUGUST 2011

Customer

Broking Agents

SFO


AUTO POINT

Trend in average freight rates and diesel prices

Key cost indicators

1.80

` / tkm

FY11

(` / tkm)

1.60 1.40 1.20 1.00

Freight rates

1.43

1.50

Fuel cost

0.70

0.75

EMI

0.13

0.14

Depreciation

0.10

0.11

0.14

0.13

Apr-11

Aug-10

Dec-10

Apr-10

Dec-09

Apr-09

Aug-09

Dec-08

Apr-08

Aug-08

Dec-07

Apr-07

Aug-07

0.80

Freight rates Source: CARE Research and CMIE

their customers owing to their lower bargaining power and stiff competition from LFOs. Hence, SFOs tend to negotiate the price hike for a longer period taking hit on their margin. SFOs also have to bear additional costs in the form of commission to brokers or intermediaries that act as middle men for procuring customers directly or LFOs for their business. In order to understand the scenario more clearly, CARE Research has studied the operation dynamics for the Mumbai-Delhi route. It was observed that, the recent price hike in diesel has exerted an additional burden of five paisa/km on the operating cost squeezing the operating margins by almost 100-120 bps. While Trend in repo rates during last two years at net profit levels, the sharp rise in the interest cost is expected to erode the net profit by around one paisa/km. CARE Research believes freight operators would gradually pass on the rise in the operating cost to the customer, resulting in an around four-five percent rise in the freight rates in next one-two months. Jun-11

A r-11

Feb-11

Dec-10

Oct-10

Jun-10

Jun-09

4.0

Au -10

4.5

Apr-10

5.0

Feb-10

5.5

Dec-09

6.0

Oct-09

per cent

6.5

Au -09

7.0

Note:1) Calculation pertaining to freight rates and other cost Source: CARE Research and CMIE

profitability of the freight operators is also influenced by size of fleet. LFOs are in a better position or enjoy higher bargaining power to pass on any rise in the operating cost to its customers. Economies of scale help LFOs in better utilisation of its resources resulting in effective cost control. LFOs normally have an escalation clauses built in their contracts with customers which ensure that any rise in the cost is passed on to the customers. However, it has also been observed in the past that, there is a time lag between the diesel price hike and rise in freight rates. Whereas, SFOs find it difficult to pass on the rise in operating costs to

7.5

-0.01

Diesel prices

Note: Diesel Prices and Freight Rates is calculated for 9 tonne payload

8.0

Q1FY12

Interest Rate Hike The commercial vehicle (CV) demand is majorly influenced by fi nancing scenario, as more than 98 percent of the vehicles are purchased on loan fi nance basis. Rising interest rates, high inflationary conditions and considerable increase in vehicle prices have raised the capital cost and subsequently the overall ownership cost of the transport operator. CARE Research estimated, during the last one year that the EMI burden on the new truck owner has increased by six percent ie by around `420 per month. CARE Research foresees, such a high inflationary scenario resulting due to spiralling interest cost and fuel prices may slow down the growth in economic activity during FY12, consequently affecting growth in CV demand. However, the monsoons levels this year would be key monitorable as it would have an impact on both the inflationary scenario as well as economic growth. „

(The report is prepared by CARE Research, a division of Credit Analysis & Research. Views expressed are personal.)

Source: CARE Research and CMIE

AUGUST 2011 AFTERMARKET

53


Automotive carriages on the move Wireless control system proves successful for vehicle manufacturer in India

I

n Chakan, Pune, India, a market leading manufacturer of utility vehicles built a modern Greenfield facility from the ground up with state-of-the-art equipment. At the heart of the plant is the Electrified Monorail System (EMS) conveyor, designed to deliver reliable, safe, quiet and efficient transportation of the vehicles from one work station to another along the assembly line. The EMS runs throughout the entire length of the Trim, Chassis and Final assembly (TCF) line of the Vehicle in the General Assembly shop. The light truck manufactured in this facility is transported by a wireless EMS conveyor. The TCF line is considered the final stage in production, where components are added to the vehicle including ‘trim’ components such as windshield glass and seats, as well as operational components such as the engine and wheels before final vehicle testing.

local Rockwell Automation account manager, and with system integration company, Precision Automation and Robotics India Limited (PARI). The team worked closely to develop the best overall solution for this sophisticated project.

Implementation PARI was commissioned for the design and implementation of the specific assembly line. It is a turnkey integration company specialising in top-to-bottom conveyor system design, robotics, and controls & communication automation for Automotive Industry segment in India. It is designed the full vehicle assembly line to operate in realtime on the EtherNet/IP control network, using several Rockwell Automation ControlLogix PACs and supporting peripherals on the shop floor, including I/O and Variable Frequency Drives.

Results Control Automation For consulting, specifying and planning of this project, the manufacturer worked with Yantra Automation, one of the largest Rockwell Automation distributors in India, in conjunction with their

54

AFTERMARKET AUGUST 2011

After some initial challenges with line-of-sight issues which were resolved by adding another master radio and elevating their locations, the system is now able to provide real-time communication between the EMS carriers and the

PACs on the assembly plant floor, including real-time I/O status for conveyor movement control. The system also enables wireless synchronization between the floor-mounted engine trolleys and the overhead EMS carrier, for the smooth decking of the engine. The flexible architecture permits independent operation of each vehicle carrier and , the conveyor speeds are seamlessly switched in the process zones, transit zones, straight and curve zones, manual speed zones; and slow-and-stop speed zones.

The Future The project went live from November 2009. Since then, the manufacturer has seen an increase in uptime, reliability and consistency in production output, enhancing their commitment toward Lean Manufacturing. With the success of the Rockwell Automation control and ProSoft Technology communication solutions, five similar applications consisting of both EMS conveyor system and material handling in the vehicle assembly shops are being installed. „ (Courtesy Rockwell Automation)

Photograph: Martin Alva / Location courtesy: Toyota Kirloskar Motor, Bidadi

STUDY


PRODUCTS

MIGT tapes

Wheel aligner

M

M

anatec Electronics offers a vision-based wheel aligner ‘FOX 3D’ integrated with ‘Align +’ software, which enables quick and easy usabilty. The Fox 3D is designed to suit customer’s convenience; the hi-definition digital camera enables better measurement accuracy in comparison to any other conventional or equivalent technology available today. This enables to get the data accusation faster and helps the operator to follow the screen guidance, which makes the work faster. The Align + software is preloaded with all the car specifications, so that the customers can utilise this new aligner for all the cars and Manatec will continuously update the recently launched car details twice a year. The system can also measure whether the vehicle is placed on the floor or on a lift. Moreover, there won’t be any moving parts or electronics parts connected to the wheel.

ipox manufactures fi nest quality MIGT tapes that are known for their attributes, like high strength, longevity and durability. These MIGT tapes are exceptional in abrasive life and fi nishing. The tapes are made up of strong polyester that provides huge strength and durability. They are manufactured using Monolayer Independent Grain Technology. Features include: individual grain can work, polish independently, scratch-free precise fi nish, longer abrasive life, strong polyester fi lm backing, reduce defects & costly rework, etc. Some of the characteristics are: individual grain can work/grind independently; grinding force of independent grain is higher than general polishing tape, which has multi-stacked grain; longer abrasive life & scratch-free precise fi nish; strong polyester fi lm backing; standard grain size; and with anti-loading agent. Applications are in vehicle body repair shops, vehicle body paint shops, plastic & metal surfaces, etc.

Manatec Electronics, Pondicherry 605 009

MIPOX, Bengaluru 560 043.

Phone: +91 413 2248926 Mobile: +91 81442 44545 Website: www.manatec.net

Tel: 080-6583 0898, Mob: 09972053377, Email: rag-rao@mipox.co.jp, Website: www.mipoxindia.com

Commissary catering vans

V

anjax Sales manufactures commissary catering vans (series VXM & VXL) with high efficiency and safety lifting scissor mechanism. Powered by multi-stage hydraulic telescopic cylinders can be put to a variety of uses, such as catering vans, cabs in cleaning, maintenance or ambulance for handicapped hospital cases, etc. These vans are designed for modern wide-bodied jet aircrafts with access height to 6000 mm to service boeings, AB and all other commercial and military aircrafts. A variety of optional features are available, tailor-made to individual aircraft/airlines optional needs and procedures. Complete CKD kits, easy-to-assemble LE can be mounted on any appropriate chassis (new/second hand available locally). Features include: designed for multi-purpose applications; suit modern wide-bodied passenger aircrafts up to 6 m access height; choice of extendable or fi red platform; chassis to suit from available standard range of vehicles; refrigerated/air-conditioned to suit specific requirements; and options available, such as tailgate lifts, refrigeration/air-conditioning standard or half cab, etc.

Vanjax Sales Pvt Ltd, Chennai 600 098. Tel: 044-4282 1000, Fax: 044-4598 5700, Mob: 09789976611, Email: info@vanjax.com, Website: www.vanjax.in, Certification: An ISO 9001 certified company

56

AFTERMARKET AUGUST 2011


PRODUCTS

Infrared handheld heating units

L

itel Infrared Systems offers infrared handheld heating units for diverse heat applications used by leading automobile manufacturers, auto ancillaries, and auto body shops. These heating units are used for assembly line applications where components or materials need to be heated for curing, stretching, and removing creases in textile, leather, rexine and so on. The units are compact, ergonomically designed, lightweight and field-tested. They have instant on/off controls and operate on line voltage. The units can be used in horizontal and vertical positions. The infrared handheld heating units are indigenously manufactured, easy on maintenance and are available at affordable prices. Applications include: auto trim product, seat assembly operations, touch-up curing, wood stock heating, furniture, leather, plastic and textile fitting in chairs, sofas among others.

Litel Infrared Systems Pvt Ltd, Pune 411 026. Tel: 020-2712 1848, Fax: 020-2712 1086, Mob: 09422030166 Email: sales@litelir.com, Website: www.litelir.com, Certification: An ISO 9001:2008 Certified Company

Silent blocks

S

halaka Polymers designs and develops a wide range of silent blocks that are fabricated using optimum quality raw materials. These blocks can be offered as per specifications provided by client. The silent blocks play a fundamental role in the suspension systems. In these silent blocks, the rubber is bonded to the outer tube and the outer tube is press-fit/interference fit to the moulded inner tube. Applications are in automotive and refrigeration industries. Salient features include: high-degree of torrential stiffness; wear & tear-free; durability; highperformance; resistance to oxidation, ozone & radiation; indefinite shelf life; and anti-abrasive.

Gloss meters

M

angal Instrumentation offers gloss meters (model GD) that are compact, portable, sensitive and accurate instruments. These gloss meters are available in two models: mains-operated laboratory purpose and handy battery operated for measurement option of different geometry like 60-, 45-, 85-degrees, etc. These instruments can be used for the measurement of gloss/brightness of paints, tiles, auto parts, sanitary products, coating & moulded surfaces, plastic doors, glass, sinter, ceramic products, opaque glasses, porcelains, paper, cloth, pigments, flours, powder etc. The gloss meters are also useful for measurement of brightness/whiteness of plantation white sugar and measurement of reflectance of fabrics or any type of gloss surfaces.

Mangal Instrumentation, New Delhi 110 065. Tel: 011-6584 5192, Fax: 011-2984 1033, Mob: 09811117940 Email: mangal_india@vsnl.com, Website: www.mangalinstrumentation.com

Wheel balancing machines

C

omputerised video-graphic wheel balancing machines (model HWB-550) offered by Hanu Autonics come with LCD display for operations progress that simplifies the task. These wheel balancing machines have easy digital data setting with brief cycle time of 6 seconds. They have high capacity and high stability microprocessor controls. The wheel balancing machines are equipped with inch to millimeter and gram to ounce conversion functions. These are also equipped with safety guard switch for operator’s protection. Self-calibration & self-diagnosis functions; value A & D can be input automatically, making the operation easier; and state-of-the-art technology are other features of the computerized video-graphic wheel balancing machines.

Hanu Autonics Pvt Ltd, Alwar 301 001. Shalaka Polymers, Nashik 422 010 . Tel: 0253-2380057, Mob: 09822080157 Email: shalaka.polymer@gmail.com, Website: www.shalakapolymers.com

Tel: 0144-3203674, Fax: 0144-2703674, Mob: 09413303674, Email: hanuautonics@gmail.com, Website: www.hanuautonics.org, Certification: An ISO 9001:2008 Certified Company

AUGUST 2011 AFTERMARKET

57


PRODUCTS

All-purpose foam cleaners

Automotive batteries

P

R

idilite offers Cyclo MaxClean all-purpose foam cleaners that contain specialty detergents, which clean and restore colour and appearance. With deep-cleaning foaming action these foam cleaners work as great as spot carpet cleaners. Boosted with orange oil the foam cleaners are natural cleaners and have a pleasant citrus fragrance. They remove bad odours from the seat, covers, and carpets. Cyclo MaxClean foam cleaners can be used on plastic, vinyl, carpet and fabric. It is available in packaged form of 624 gms.

Pidilite Industries Ltd, Mumbai 400 059. Tel: 022-3308 7000, Fax: 022-2835 7700 Email: pil@pidilite.com, Website: www.pidilite.com

R Industries offers a wide range of automotive batteries (DIN 44) that are manufactured from high grade quality raw materials. These batteries can be customised as per customers’ specifications. The automotive batteries are widely known for their durability and quality. These can be availed at industrial leading price (claims the company).

R R Industries, Bengaluru 560 021 . Tel: 080-23126827, Mob: 09448437845 Email: info@rrmicrobatteries.com, Website: www.rrmicrobatteries.com, Certification: An ISI 9001:2008 Certified Company

Stacker parking systems

K

amex Mechanised Parking offers stacker parking systems for two cars. The parking systems are equipped with a single platform, allowing long-term parking on the upper level and short-term parking on the lower one. For use of the upper platform vehicle from the lower parking space is removed. These systems are suitable for medium & large buildings and these can also be installed into existing buildings. A lengthwise or breath wise arrangement may be selected according to the condition of the site. Hydraulic cylinders are used for lifting the pallet. Pallets are made using 2 mm thick galvanised steel to prevent deflection. The pallets are provided with stopper to prevent movement of cars during pallet movement. Over-travel limit switches are fitted to prevent over-travel of the pallets. Emergency stop switch is installed inside the operating level. If the switch is activated in emergency, the power is cutoff the main motor and all operations are stopped.

Kamex Mechanised Parking, Jaipur 302 018. Tel: 0141-6511501, Fax: 0141-2707856Email: contact@kamexparking.comcontact@kamexparking.com, Website: www.kamexparking.com

Industrial & automobile keys

J

agat Engineers offers industrial and automobile keys of all types, like square, flat and parallel, woodruff, Gib-head, etc, as per IS:2048, 2292, 2293, 2294 and 2710, in DIN06881 to 6888, ASTM and BS-46, part I. Sizes range from 3 x 3 mm sq to 50 x 28 mm flat parallel keys with all sides ground to required tolerance and well chamfered with all over for ease of assemble for 10 mm to 300 mm shaft key ways. The keys are used for transmitting loads in electric motors, pumps, couplings, pulleys, valves, textile machineries, agricultural machineries, chemical plants, machine tools of all types and other rotating parts. Woodruff keys are used in compressors, two-wheelers, three-wheelers, cars, trucks, tractors and gearboxes in all types of machineries. Special keys are made from stainless steel, EN-24, EN-19 materials for shock loading transmissions apart from standard EN-8/9 keys with high tensile tested steel material. Maintenance purpose kits are also available for quick repairs and breakdown jobs.

Jagat Engineers, Vadodara 390 010. Tel: 0265-264 2347, Fax: 0265-264 3347

58

AFTERMARKET AUGUST 2011


PRODUCTS

Diesel engine automobile sleeves

G

helani Industries manufactures and offers diesel engine automobile sleeves that are made from very high quality raw material, which ensures high durability at its user end. These diesel engine automobile sleeves are in high demand in the market. They are available in different sizes and designs. The diesel engine automobile sleeves are available at industrial leading prices (claims the company).

Power window lubricants

C

hem-Verse Consultants offers power window lubricants (Window Dresser) that are excellent polymer-based lubricants for rubber, plastic, metal, etc. These lubricants are used in the rubber channels of vehicle windows. Some of their benefits include: allow smooth up and down movements of window glasses; protect rubber parts from weathering effects; and are non-staining and long lasting. The power window lubricants are available in packing of 200 gms and 500 gms in aerosol tins.

Ghelani Industries, Rajkot 360 002.

Chem-Verse Consultants (India) Pvt Ltd, Mumbai 400 022.

Tel: 0281-2462440, Mob: 09924566887 Email: ghelani_industries@yahoo.co.in, Website: www.ghelaniindustries.reaindia.com

Tel: 022-2409 5503, Fax: 022-2409 7858Email: sales@ chemverse.com, Website: www.chemverse.com, Certification: An ISO 9001 certified company

Airless shot peening machines Tyre pressure indicators

M

EC Shot Blasting Equipments offers airless shot peening machines of 4 pairs of satellites for crown wheel and pinion for automotive components. To ensure the life guarantee in automobile industries products, peening is technology applied to increase the fatigue life of the automotive components like crown wheel & pinion, gears & axles, crank shafts & connecting rods, suspensions & springs, valves & cams etc. by increasing the residual compressive strength of such components. These automotive components are fixed with the help of specific designed fixture on suitable number of pair of satellites on indexing turntable depending upon the production output. To ensure the required peening intensity, the constant abrasive flow, the accurate size and purity of the abrasive & predetermined period of abrasive throughput on the targeted surface are the prime basic parameters are to be controlled by providing online pneumatic operated abrasive replenishes system ensuring the abrasive supply without striving the blast wheels.

MEC Shot Blasting Equipments Pvt Ltd, Jodhpur 342 005. Tel: 0291-2740609, Fax: 0291-2742409, Email: mail@mecshot.com , Website: www.mecshot.com, Certification: An ISO9001-2008 & 14001:2004 Certified Company

D

igital tyre pressure indicators offered by Elak are accurate instruments for checking tyre pressure in twowheelers, cars, trucks, etc. These pressure indicators are meant for automobile showrooms, wheel alignment centres, petrol pumps, transport corporations, automobile service centres, tyre showrooms, etc. The tyre pressure indicators are meant to replace the existing analogue type indicators currently used, which do not give accurate reading due to zero error and also due to wear and tear in mechanical components. Technical specifications include: accuracy of ±1 PSI; measuring range 0-150 PSI; super bright LED display (25 mm); dimensions 28 cm (H) x 17 cm (W) x 9 cm (D); weight 2 kg; operation at 220 V AC; and fitting of 1/4 BSP nuts for connecting regular and coiled hoses.

Elak Pvt Ltd, Chandigarh 160002. Tel: 0172-265 0308, Fax: 0172-265 5318 Email: info@elakindia.com, Website: www.elakindia.com

AUGUST 2011 AFTERMARKET

59


ADVERTISERS’ LIST

Pg No. Advertiser...........................................Tel................................. E-mail ............................................Website

BIC ..... ADEA Awards........................................+91-22-30034650...........prachi.mutha@infomedia18.in ...... www.adea.in

7......... Anand Automotive Ltd .........................+91-11-26564542 ...........arpita.bhatia@anandgroupindia.com .. www.@anandgroupindia.com

23....... Arval India ...........................................+91-22-61964100 ................................................................... www.arval.in

3......... Bosch Limited ......................................+91-80-22999269 ..........sanjay.chakravarty@in.bosch.com www.boschindia.com

41 ....... Credit Analysis & Research Ltd. ...........+91-22-67543456...........care@careratings.com .................. www.careratings.com

55 ....... Engineering Expo .................................+91-9819552270 ............engexpo@infomedia18.in .............. www.engg-expo.com

9......... Federal Mugal ......................................+91-124-4784530 ........customercare.india@federalmogul.com ..... www.federalmogul.com

5......... Madhus Garage Eqpts ..........................+91-80-26660656 ..........madhus@madhusindia.com .......... www.madhusindia.com

49 ....... Pinnacle Works ....................................+91-9867277744 ...........anu@pinnacleworks.com .............. www.pinnacleworks.com

45 ....... Sreelakshmi Traders ............................+91-44-24343343...........sreelakshmitraders@gmail.com .... www.sreelakshmitraders.com

17 ....... Subros Ltd ............................................+91-11-23414946 ...........pmehra@subros.com ..................... www.subroslimited.com

FIC ...... Sushma Industries ...............................+91-80-28397463...........marketing@sushmaindustries.com.. www.sushmaindustries.com

BC ...... Tata Motors Ltd. ...................................+91-22-66561866...........charu.gulati@tatamotors.com ....... www.tatamotors.com

Q Our consistent advertisers

Rudrapur

Ahmedabad

Pune

23 - 26 Sept ’11

14 - 17 Oct ’11

18 - 21 Nov ’11

Chennai

Indore

Aurangabad

8 - 11 Dec ’11

6 - 9 Jan ’12

17 - 20 Feb ’12

+91 98195 52270 | www.engg-expo.com | SMS EXPO to 51818

60

AFTERMARKET AUGUST 2011


PRODUCT INDEX

Product ................................................................................Pg No.

Product ................................................................................Pg No.

A/C service equipment.......................................................... 5

Gasoline systems .................................................................. 3

ADEA - Automotive Dealership Excellence Awards ............... BIC

Gear pumps .......................................................................... 3

Air density monitoring systems ............................................ FIC

Gloss meters ......................................................................... 57

Airless shot peening machines ............................................. 59

Goetze pistons ...................................................................... 9

All-purpose foam cleaners.................................................... 58

Horns .................................................................................... 3

Alternatives........................................................................... 3

Hoses & tubes ....................................................................... 17

Automobile components castings ........................................ 59

Hvacs & evaporators............................................................. 17

Automobile engineering components .................................. 61

Industrial & automobile keys ............................................... 58

Automobile forged components ........................................... 61

Infrared handheld heating units .......................................... 57

Automobile performance testing systems ............................ FIC

Lighting ................................................................................ 3

Automotive batteries ............................................................ 58

Lubricants............................................................................. 3

Automotive component testing systems ............................... FIC

MIGT tapes............................................................................ 56

Automotive products ............................................................ 7

Motor testing systems ........................................................... FIC

Batteries ............................................................................... 3

Power window lubricants ..................................................... 59

Bottle cap torque testing systems......................................... FIC

Pressure sensors & indicators ............................................... FIC

Brake pads ............................................................................ 3

Relays ................................................................................... 3

Brake testing equipment ...................................................... 5

Self-adhesive tapes ............................................................... 45

Bus A/C ................................................................................. 17

Silent blocks ......................................................................... 57

Buses .................................................................................... BC

Spark plugs ........................................................................... 3

Clutch plates & cover assemblies .......................................... 3

Spot welding equipment ...................................................... 5

Collision repair systems ........................................................ 5

Spring testers ........................................................................ FIC

Commercial vehicles ............................................................. BC

Stacker parking systems ....................................................... 58

Commissary catering vans .................................................... 56

Starter motors ...................................................................... 3

Compressors ......................................................................... 17

Suspension components ....................................................... 61

Condensers ........................................................................... 17

Tensile testing systems ......................................................... FIC

Cooling modules ................................................................... 17

Torque .................................................................................. FIC

Crimp testers ........................................................................ FIC

Torque tool testers................................................................ FIC

Diesel engine automobile sleeves ........................................ 59

Tyre changers ....................................................................... 5

Exhibition - Engineering Expo .............................................. 55

Tyre ination equiment ........................................................ 5

Filters.................................................................................... 3

Tyre pressure indicators ....................................................... 59

Force ..................................................................................... FIC

Ventilators ............................................................................ 45

Force & pressure calibration & testing equipment ............... FIC

Wheel aligners ...................................................................... 5,56

Force & torque gauges.......................................................... FIC

Wheel balancers ................................................................... 5

Forged automobile components .......................................... 61

Wheel balancing machines ................................................... 57

Gas analysers ........................................................................ 5

Wiper blades ......................................................................... 3

FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

AUGUST 2011 AFTERMARKET

61


62

AFTERMARKET AUGUST 2011

1,275,481

MAY 2010

May 11 over

over May 10

Over Apr.-May (10-11)

Apr.-May (11-12)

% Change

20%

58%

76,355

1,144,569

Avg. Mthly. Export (2 Months) in F.Y.

2010-11 Apr.-May

120,616

173,730

Avg. Mthly. Export (2 Months) in F.Y. 2010-11 Apr.-May

(Exports)

92%

140,998

% Change May 11

33%

67,482

187,643

MAY 2011

MAY 2010

129,332

Truck/Bus

Passenger Car

15%

Category

Over Apr.-May (10-11)

Apr.-May (11-12)

% Change

7%

1,977,185

1,266,078

Avg. Mthly. Prdn. (2 Months) in F.Y.

2010-11 Apr.-May

2,268,448

1,355,099

9%

2,020,475

2,201,561

Passenger Car

Avg. Mthly. Prdn. (2 Months) in F.Y. 2010-11 Apr.-May

May 10 (Prodn.)

7%

1,358,905

MAY 2011

% Change

Truck/Bus

Category

17%

474,122

552,531

17%

472,540

550,698

Light Truck (L.C.V.)

7%

230,506

245,504

5%

231,640

243,994

Front

7%

151,932

163,125

5%

163,084

171,220

Tractor Rear

13%

80,434

90,931

(-)0.4%

81,080

80,789

Trailer

9%

22,954

25,076

27%

20,058

25,382

Adv

18%

13,749

16,281

14%

13,529

15,358

Otr

28%

886,692

1,138,681

26%

904,916

1,139,303

Scooter (2 Wheeler/Moped)

37%

506,627

694,319

43%

493,632

704,480

Scooter (3 Wheeler)

(-)13%

5,742

5,017

(-)52%

11,484

5,465

Jeep

15%

113,086

130,017

40%

100,384

140,811

Light Truck (L.C.V.)

388%

300

1,465

172%

489

1,330

Front

(-) 9%

2,301

2,084

(-) 4%

1,764

1,702

Tractor Rear

(-) 100%

425

0

0%

0

0

Trailer

75%

11,118

19,421

25%

11,512

14,388

Otr

371%

513

2,417

316%

1,025

4,267

Scooter (2 Wheeler /Moped)

57%

33,665

52,838

175%

22,734

62,446

Scooter (3 Wheeler)

64%

50,862

83,514

67%

54,870

91,514

Motor Cycle

CATEGORYWISE TYRE EXPORTS MAY 2011 AND COMPARISONS

(-)9%

129,499

117762

(-)8%

126,540

116,465

Jeep

24%

8,025

9,946

19%

8,940

10,659

Implement

14%

3,305,196

3,774,544

16%

3,441,839

3,988,180

Motor Cycle

CATEGORYWISE TYRE PRODUCTION MAY 2011 AND COMPARISONS

57%

5,002

7,830

92%

5,016

9,639

Industrial

11%

44,985

50,082

4%

50,403

52,275

Industrial

35%

451,963

608,895

54%

426,698

659,196

Total

15%

9,089,959

10,492,383

15%

9,295,217

10,648,610

Total

DATA


57.86

32.31

142,934

50,083

267,401

1,599,247

4,861,614

Tractor (Front)

Tractor (Rear)

Scooter (2/3 Wheelers) (Incl. Moped)***

Motor Cycle

TOTAL

4,893,845

1,916,782

911,019

102,480

102,480

219,488

1,378,175

263,421

(OEM’s)

ORIGINAL EQUIPMENT MFRS.

47.56

53.37

74.54

66.10

41.49

39.59

47.97

15.99

% to Total Dom. Avail.

16,250

0

0

0

0

0

1,250

15,000

GOVT.

0.16

0

0

0

0

0

0.04

0.91

% to Total Dom. Avail.

518,881

75,513

43,795

2,466

1,600

119,222

116,469

159,816

EXPORT

5.04

2.10

3.58

1.59

0.65

21.51

4.05

9.70

% to Total Dom. Avail.

2,764,214

Passenger C ar**

33.32

31.06

108,719

869,172

3,506,523

10,261,581

Tractor (Rear)

Scooter(2/3 Wheelers) (Incl. Moped)***

Motor Cycle

TOTAL

9,678,472

3,843,370

1,818,370

213,362

213,362

427,158

2,636,890

525,960

(OEM’s)

ORIGINAL EQUIPMENT MFRS.

45.83

51.13

64.99

65.40

43.45

38.65

46.63

16.31

% to Total Dom. Avail.

32,500

0

0

0

0

0

2,500

30,000

GOVT.

0.15

0

0

0

0

0

0.04

0.93

% to Total Dom. Avail.

1,143,391

167,027

110,508

4,168

2,930

260,033

251,266

347,459

EXPORT

5.41

2.22

3.95

1.28

0.60

23.53

4.44

10.78

% to Total Dom. Avail.

*Sales to STU’s included in Replacement Market. **W.e.f. July ‘10, Jeep tyres/vehicles includes in Passenger Car category. ***For Segmentwise Supply:- Scooter @ 3 tyres and Moped @ 2 tyres per vehicle. Moped includes Electric Two Wheelers. + Important; W.e.f. Jan. 2011, Import data (Source Infodrive - latest available & annualized) has been added as Col. # 7. Breakup of Import (by OEMs and for replacement market) NOT available. Hence all Imports are included in Repl. Mkt. data (Col # 2). Col. #2 Replacement Market; Total Dom. Availability ‘-’ Export ‘-’ Govt. ‘-’ OEM’s.

48.60

46.65

37.81

55.95

417,870

274,716

Tractor (Front)

48.88

71.98

% to Total Dom. Avail.

L. C. V.

(Incl. Jeep)

2,320,367

REPLACEMENT MARKET

Truck and Bus *

CATEGORY

9,545,213

3,560,907

1,222,215

155,029

247,014

554,363

2,454,392

1,351,293

TOTAL DOM. PRDN.

92.76

99.15

100.00

100

100

100

85.43

82.02

% to Total Dom. Avail.

745,377

30,635

0

0

0

0

418,614

296,128

IMPORTS

7.24

0.85

0.00

0.00

0.00

0.00

14.57

17.98

% to Total TOTAL Avail.

10,290,590

3,591,542

1,222,215

155,029

247,014

554,363

2,873,006

1,647,421

(Col 6 ‘+’ 7)

19,574,112

7,371,128

2,798,050

326,249

491,008

1,105,061

4,772,418

2,710,198

TOTAL DOM. PRDN.

92.70

98.06

100.00

100

100

100

84.39

84.07

% to Total Dom. Avail.

1,541,832

145,792

0

0

0

0

882,452

513,588

IMPORTS

7.30

1.94

0.00

0.00

0.00

0.00

15.61

15.93

% to Total TOTAL Avail.

21,115,944

7,516,920

2,798,050

326,249

491,008

1,105,061

5,654,870

3,223,786

(Col 6 ‘+’ 7)

100

100

100

100

100

100

100

100

TOTAL % DOMESTIC TO AVAILABILITY TOTAL

100

100

100

100

100

100

100

100

TOTAL % DOMESTIC TO AVAILABILITY TOTAL

CATEGORYWISE SUPPLY OF TYRES TO VARIOUS SEGMENTS F.Y. 2011-12 (APRIL - MAY)

*Sales to STU’s included in Replacement Market. **W.e.f. July ‘10, Jeep tyres/vehicles includes in Passenger Car category. ***For Segmentwise Supply:- Scooter @ 3 tyres and Moped @ 2 tyres per vehicle. Moped includes Electric Two Wheelers. + Important; W.e.f. Jan. 2011, Import data (Source Infodrive - latest available & annualized) has been added as Col. # 7. Breakup of Import (by OEMs and for replacement market) NOT available. Hence all Imports are included in Repl. Mkt. data (Col # 2). Col. #2 Replacement Market; Total Dom. Availability ‘-’ Export ‘-’ Govt. ‘-’ OEM’s.

47.24

44.53

21.88

38.90

215,653

47.93

73.40

% to Total Dom. Avail.

L. C. V.

(Incl. Jeep)

1,209,184

1,377,112

Passenger Car**

REPLACEMENT MARKET

Truck and Bus *

CATEGORY

CATEGORYWISE SUPPLY OF TYRES TO VARIOUS SEGMENTS F.Y. 2011-12 (APRIL)

DATA

AUGUST 2011 AFTERMARKET

63


POST SCRIPT Why Aftermarket?

I

ndia has been scripting success stories in the auto industry for some time now. Vehicle production has doubled in the last six years and still growing strong. And this momentum is expected to continue for the next few years as the density of passenger cars in India is just 12 per 1,000 population, which is abysmally low even when compared with our Asean peers. Healthy economy, increasing disposable incomes, expanding urban centres, creation of new townships and growth in infrastructure will only catalyse the growth of automobiles further. The used car market, which is still in its nascent stage, is predominantly in the unorganised sector. However, the business is set to boom due to inflow of vehicles on account of shrinking life cycle of passenger cars—from about 15 years a decade ago to about five years now, at least in the cities and towns. Today, the cream for dealers lies in the after sales service, which is why multi-brand third party service stations are mushrooming. Most of the players in this space offer quick repair service, which is a money-spinner. And this is the stimulant for more players to get in to the organised multi-brand service centres and used car retail outlets. It is a well known practice in the country that the owners of older vehicles migrate to independent service networks for various reasons including proximity, convenience, affordability and faster service. Besides, the trust that the neighbourhood garages offer outweighs the authorised service centres due to personal attention etc. Moreover, with the vehicle manufacturers focusing more on the warranty period, catering to service requirements of older cars are being taken up or shared by independent players. However, with the vehicles getting feature rich, the probabilities of the conventional garages offering repair services is getting reduced. To address the issue, some of the branded third-party multi-brand car service companies have conceptualised methods to help these garages move up in the value chain both in terms of technical capability and profitability. These factors made the Indian automotive aftermarket grow at a steady pace. With the vehicle parc increasing, it is expected to expand rapidly over the next five years. The total size of the Indian aftermarket is currently estimated at `33,000 crore, while the global market is worth `2,700,000 crore. These mind-boggling figures only reemphasise further the potential for growth. Automotive aftermarket offers tremendous opportunities for the players across the value chain and we at Infomedia 18 believe that these esteemed people should be informed of the developments periodically. And this is the impetus for launching a new magazine—Aftermarket. The monthly magazine will keep you posted of the developments in this segment in terms of news, views, trends, technology, analysis and features on best dealerships and review of service centres. Aftermarket will initially have eight sections—News, Rearview, Cover Story, Interview, Cutting Edge, Focus, Viewpoint and Extra Mile. Besides, it will have snippets on new products that come in to the aftermarket space. The News section will update you on the recent happenings while Rearview will look back some of the best service centres and their best practices. Each issue will have a cover story, which will be topical in nature. You will have the opportunity to listen to celebrity CEOs of companies operating in the aftermarket, in every issue under the Interview section. Cutting Edge will have stories on technology, Focus on some issues concerning the segment and Viewpoint, as it denotes, will have the viewpoint of industry representatives. The last section, Extra Mile, is all about the art of selling automobiles—you will have stories on the best dealerships and can be a stimulant for you to emulate best practices. - T Murrali

64

AFTERMARKET AUGUST 2011


Aftermarket - August 2011  

Aftermarket is India's first business magazine for the automotive aftermarket . Brought to you by Auto Monitor, it acts as a vital link betw...

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