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VOL-4 • ISSUE-3 •DECEMBER 2013 • 100

PULSE OF THE AUTOMOTIVE BUSINESS WORLD

NIPMAN FASTENERS A GRIPPING STORY

INDIA

EICHER unleashes the ‘GO PRO’ magic

PRAVIN MALHOTRA, MD, NIPUN MALHOTRA, ED, Nipman Fasteners Industries Ltd.

12-page Exhaustive Report on

FREE 60-page supplement enclosed

End of the V8 era in F1 and a proud moment for Renault Sport F1 team

RUEDIGER SCHROEDER, MD, Kärcher Cleaning Systems


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EDITOR’S NOTE EDITOR Punnoose Tharyan EDITORIAL ADVISORS Salil Sharma, Alexander T., Annie Jacob -------------------------DELHI - EDITORIAL (editorial@motownindia.com) News Coordinator Jisha P Sr. Correspondents Avishek Banerjee, Abhijeet Singh Sr. Photographer Mohd. Nasir

E

ver since we started Motown India magazine in October 2010, the endeavour is to bring on the cover leading personalities from the automotive industry. Cutting across OEMs, tier I, II and III players, our emphasis is on putting on the cover a

CEO of an automotive company, whether it is a car or bus manufacturer, or whether it is a component player. For the December 2013 issue, we have an automotive component maker. Nipman Fasteners makes products like engine studs, flange screws and bolts, etc. While driving or riding a vehicle, we really do not give a second thought to such products. Some of us would not even know where these products are used in a vehicle. But one thing needs to be highlighted---without them, vehicles would literally fall apart. The Nipman Fasteners story is one gripping one that cannot be ignored! Even as Motown India gets into its fourth year of publishing, we are delighted to note that the magazine has added one more feather to its cap. We have started our Chennai Bureau in a small way with Jayashankar Menon as Editor (South). Jayashankar comes with loads of journalistic experience in the automotive space and is known for his integrity, hard work and great capability. His exhaustive report on Excon 2013, the massive infrastructure show organised by CII, is a pointer to that. The December 2013 issue also comes with its free supplement which carries reports on the vehicles we reviewed. We got the Jaguar F-Type for a brief drive and were blown away by its sheer presence on the road as well as its performance. We also tested an air-conditioned tractor from the Mahindra& Mahindra stable and came back impressed.

P. Tharyan ptharyan@gmail.com www.motownindia.com

CHENNAI - EDITORIAL Editor(South) Jayashankar Menon (jayashankar@motownindia.com) -------------------------MARKETING & SALES (sales@motownindia.com +91-9958125645) Director Business Strategy Sanjeev Sharma Associate Manager Anuj Srivastava -------------------------ACCOUNTS Ankit Sharma -------------------------CIRCULATION & SUBSCRIPTION (subscription@motownindia.com) Manager Dalip Singh Bagdwal -------------------------EDITORIAL DELHI OFFICE 145 B/9, First Floor, Kishangarh, Next to United Free Church, Vasant Kunj, New Delhi 110070,Tel: 011-26122758/59, Tele Fax: 011-26122757 -------------------------EDITORIAL CHENNAI OFFICE 76/9 A Block, New Street, AN Colony, Aminjkkarai, Chennai - 28. Mobile: +91 – 9790971663 -------------------------DISTRIBUTED BY Central News Agency, New Delhi -------------------------EDITORIAL CONTENT The publisher makes every effort to ensure that the contents in the magazine are correct. However, he can accept no responsibility for any effects from errors or omissions. Any unauthorised reproduction of Motown India content is strictly forbidden. -------------------------Motown India is printed, published, edited and owned by Punnoose Tharyan and published from 4058 / D-4, Vasant Kunj, New Delhi-110070. Printed at Pearl Printers, 52, DSIDC Shed, Okhla, Phase 1, New Delhi. This issue of Motown India magazine contains 64 pages including both covers and a 60-page booklet.

December 2013 / 3


CONTENTS

NIPMAN FASTENERS

26

A GRIPPING STORY

EICHER unleashes the ‘GO PRO’ magic in Indian CV market

EXCON 2013 gives impetus to construction equipment industry in South Asia

22

TÊTE-À-TÊTE Ruediger Schroeder Managing Director, Kärcher Cleaning Systems

8 / December 2013

48

36

52

TÊTE-À-TÊTE Reiner A. Allgeier Managing Director, Schenker India Private Limited

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CANDID VIEWS

Barking up the wrong tree SALIL SHARMA, Partner,

Kapur Sharma & Co., www.kapursharma.com

i 10 / December 2013

f you are a casual reader of either the business media or the business page of main stream press, then you are bound to have come across an article/ discussion on inflation bogging down the Indian economy. The government prefers to rely on the Wholesale Price Index (WPI) while the critics and economist like to refer to the Consumer Price Index (CPI) for tracking inflation. The WPI for the month of October was 7pc while the CPI for the same period has been declared at 10.1pc. When these figures are compared with the ones for the month of January, i.e. 7.31pc (WPI) and 10.91pc (CPI), it can be concluded that inflation in the country is quite stubborn. The response to this phenomenon by the RBI governor is to hike the repo rate, which in simple terminology means that the cost of funds of the banks is increased. The idea is to make things expensive to the consumers in order to dissuade them from making purchases. The lower demand would make way for cheaper prices. The Indian policy makers are erring in this respect because by adopting this approach they are only trying to address the demand side issues to control inflation. The problem in India is that the root cause of rising prices is a supply side issue. To analyse this, one needs to understand that food inflation has 70pc weightage in the CPI and there is little that an interest rate hike can do to bring it down. The reason being that no one in the food supply chain (farmer, middle men, vendor and the final consumer) is so heavily dependent on bank credit that a hike in interest rate would increase their cost and thereby result in lower demand. The need of the hour is to remove inefficiencies in the food supply chain in order to bring down the prices. The middleman lobby or “ahartiyas” as they are known locally is so strong that despite their hefty margins and uncompetitive trade practices

they continue to flourish. The consequence of the current distribution set up is that the farmers receive unremunerative compensation for their produce while the same vegetables are made available to the consuming public at exorbitant prices. The other related problem is that due to lack of cold storage infrastructure the holding power of the farmers is very low making it imperative for them to sell their perishable products at whatever rates they are offered. Similarly the consumers have to buy their daily needs at whatever prices they are available at. The government needs to create the said infrastructure or as they are finding it difficult to fund the same, they should remove all impediments in the way of attracting FDI in multi brand retail which would create the same. The other aspect of controlling inflation is to realise that the real culprit for it is the ballooning fiscal deficit of the country. The current UPA regime has been more than liberal with handing out freebies like the loan waivers in 2009 or food security bill or for that matter the funds disbursed under NREGA or MNREGA – has created a major hole in the nation’s balance sheet. This is further compounded by the normal subsidies given to the fertilizer and petroleum sectors. The printing of notes to cover this gap is causing the runaway inflation. The policy makers and the politician need to wake up to the reality that the time has come to educate the citizens and put a lid to these subsidies which would ensure a cooling down of inflation. It is high time that RBI stops hiking interest rates and throttling growth. The government should take the right steps based on the above suggestions which would achieve the twin objective of controlling inflation and unbridling growth.

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TUTU’S FINE TUNES

New BMW X5--- Safe, Spacious and Swell R.K. DHAWAN (TUTU)

I

got an opportunity to drive the new BMW X5 in the pristine environ of Canada in Vancouver. Boy, was I excited! The highway we drove was the neatest and smoothest I had ever driven on. The road was as soft as feather and I could not help but admire the world I saw from the driver’s seat. I was on a drive in heaven, or so I felt. So did I enjoy my drive? Here was a sports utility vehicle that offered Comfort, Dynamic and Professional adaptive suspension packages and Adaptive M suspension to enhance the car’s sporty handling properties and ride comfort, an Electric Power Steering and an all-wheel-drive system along with tons of other refinements, and all I got was a long straight road with no bumps, no hilly terrains, no ditches and no hurdles or obstacles of any kind. It was like driving from Rashtrapathi Bhavan to India Gate in New Delhi a hundred times! Yawn. This new BMW X5 is a great piece of machine, but alas, we did not get a chance to test her prowess in the real sense. But I am not complaining. One the one hand while I thoroughly enjoyed the BMW hospitality with their seven-star treatment, I also got to see Canada at its best. I was so enamoured by its scenic beauty and impeccable cleanliness that I couldn’t help asking an official there, “They say when you die, you go to heaven, where will you guys go? You are already living in heaven!” Vancouver was as good as heaven. The new BMW X5 epitomises the best technology can offer when it comes to engine performance, interior comforts and driving ease etc.

12 / December 2013

It’s a safe car with some excellent Euro NCAP crash ratings. This third generation model comes with increased spaciousness, raised seating position; enhanced interior variability thanks to 40 : 20 : 40 split/ folding rear seat backrest; boot capacity: 650–1,870 litres; automatic tailgate operation as standard; tailgate can now also be opened and closed by remote control and from the driver’s seat; rear comfort seats and an additional third row of seats are both available as options. There were three engine variants at launch: BMW X5 xDrive50i with a new generation of the V8 petrol engine (450 hp), BMW X5 xDrive30d with revised six-cylinder in-line diesel unit (258 hp) and the BMW X5 M50d M Performance Automobile with tri-turbo six-cylinder in-line diesel (381 hp). This month more models have been added to this range. These include the BMW X5 xDrive40d, BMW X5 xDrive35i, BMW X5 xDrive25d and BMW X5 sDrive25d . The engine is mated to an eight-speed automatic gearbox. There are several innovations in the BMW ConnectedDrive range: BMW Head-Up Display with full spectrum of colours and new display content; BMW Night Vision with human and animal detection and Dynamic Light Spot, Lane Change Warning, Speed Limit Info, new BMW Parking Assistant with longitudinal and lateral guidance, Surround View with 360-degree display, etc. The new BMW X5 is expected to reach the shores of India early 2014.

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HIGHLIGHTS Honda develops VTEC Turbo engine Honda Motor Co., Ltd. has announced that it has newly developed VTEC Turbo, a direct injection gasoline turbo engine most suitable for small-tomedium-sized vehicles. The VTEC Turbo is a new addition to the Earth Dreams Technology, the next-generation powertrain technologies which achieve both the fun of driving and excellent fuel economy at a high level. With the application of variable valve motion technology such as Honda’s unique VTEC along with direct injection turbocharging with highly-fluidised combustion and a thorough reduction in engine friction, this engine achieves class-leading output and environmental performance, while downsizing engine displacement. Along with existing hybrid technology and diesel engine, the VTEC Turbo that features displacement size variation of 2.0 L, 1.5 L and 1.0 L will be adopted by Honda’s future global models in accordance with characteristics of each model and needs of local customers. Lineup of direct injection gasoline turbo engines • 2.0 litre 4-cylinder direct injection gasoline turbo engine. High output and high response were achieved by VTEC, a highoutput turbocharger, direct injection technology, and a high-performance cooling system. It delivers maximum power of 280HP • 1.5 litre 4-cylinder direct injection gasoline turbo engine / 1.0 litre 3-cylinder direct injection gasoline turbo engine. These are next-generation compact engines that combine a base engine with a newly designed framework, the VTEC variable valve train system with thoroughly reduced friction and a turbocharger with a low moment of inertia.

14 / December 2013

Daimler subsidiaries form Daimler Trucks Asia

Fresh investment of 2,547 crore announced

The two subsidiaries of Daimler AG---Daimler India Commercial Vehicles Pvt. Ltd. (DICV and Mitsubishi Fuso Truck and Bus Corporation (MFTBC) are bundling their Asia business under the umbrella of Daimler Trucks Asia with a view to reaching their joint target of 290,000 units of the FUSO and BharatBenz brands until the year 2020. To this end it also announced an investment of €300 million ( 2,547 crore approx.) between 2014 & 2018 to boost the production and sales network of Daimler Trucks in Asia. This is over and above the existing/ already planned investments. Daimler also announced the debut of the DICV manufactured FUSO FI (medium-duty) truck at the Tokyo Motor Show.

Dr. Albert Kirchmann, President & CEO - MFTBC, said: “With this investment, we will expand our existing production and assembly network in order to prepare ourselves for the demand in Asia and Africa”. Dr. Kirchmann added: “Thus, we are investing in the future of a strong team from two cultures. I am proud of the team from Japan and India, which is working hard together in order to bring the right products for the future markets on road”. Under the motto “Building together” MFTBC is proving that based on its strong Cooperation with DICV under the Daimler Trucks Asia strategy, it already has the right products on offer for the future markets. The new, medium-duty FUSO “FI” truck

celebrated its trade fair debut before an international audience. The vehicle, which is one of a total of five FUSO truck models from the production facility of Daimler India Commercial Vehicles, is custom-tailored to customers in the growth markets of Asia and Africa. DICV produces light, medium and heavy-duty commercial vehicles for the Indian volume market, under the brand name – BharatBenz. DICV has a total dedicated investment of over 4,400 crore. The company also handles production, marketing, sales and after sales of MercedesBenz Actros trucks in India.

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www.elofic.com

Filters & Lubricants...the complete engine protection


HIGHLIGHTS Honeywell names Jim Bujold President, SE Asia

Honeywell has appointed Jim Bujold as President, Southeast Asia, and Anant Maheshwari as President, Honeywell India. The appointments reflect the organisation’s continued evolution, growth and depth of leadership talent in the country. Maheshwari, who has been the Managing Director of Honeywell Automation India Limited (HAIL) since March 2010, will succeed Bujold who is currently President, Honeywell India. Both Bujold and Maheshwari will transition into their new roles on January 1, 2014. “These senior leadership changes reflect not only a robust leadership talent pipeline, but also our relentless focus on achieving an outstanding growth trajectory in our High Growth Regions (HGRs),” said Shane Tedjarati, president of Global High Growth Regions, Honeywell. “We are confident that both Jim and Anant will play big roles in Honeywell’s presence in the region. Jim has done a terrific job over the past three years in driving growth for Honeywell in India. His move to a larger, regional role aligns with the company’s focus on key HGR countries in Southeast Asia. The company projects these HGRs to contribute more than 60pc of the world’s growth during the next decade,” Tedjarati added.

16 / December 2013

Nissan exports its 300,000th car from Ennore Port Nissan Motor India Pvt. Ltd. (NMIPL) flagged-off its 300,000th car for export from Ennore Port Ltd. (EPL) in the presence of Kenichiro Yomura, President Nissan India, Baskarachar, MD and Chairman, Ennore Port, Chennai, Hideki Maebashi, Head of Exports and Atul Shahane, General Manager, Vehicle Exports, Nissan Motor India Pvt. Ltd. The Indian arm of the Japanese carmaker commenced exports from the Ennore port in September 2010 and was the first automaker to use the Ennore port as the export gateway. Since then Nissan have been exporting their vehicles to more than 100 countries/regions including Africa, Middle East and Europe. Nissan has now exported over 300,000 vehicles in last three years from the Ennore port. Kenichiro Yomura, President, Nissan India Operations said, “This milestone underscores our

manufacturing capabilities at our world class facility here in Oragadam, near Chennai.” It may be recalled that in 2008, Nissan had signed its first MoU with Ennore Port Ltd. (EPL) to export its vehicles to

various countries. In July 2013, the agreement between Ennore Port and Nissan was upgraded to include more parking space and priority handling of vehicle units inside the port. This agreement is valid for the next 10 years.

Govt rolls out BusIndia.com portal Union Cabinet Minister for Road Transport and Highways Oscar Fernandes officially launched Busindia.com, the integrated bus ticket portal. Busindia. com portal brings together bus transport operators across the country under a single window, thus facilitating passengers to plan their bus travel across Indian cities with ease. BusIndia. com enables passengers to do trip booking and hotel booking, providing a full itinerary experience for the first time in Indian bus booking. Radiant Info Systems Ltd. (Radiant Info), the Bangalore based technology solutions

company, has developed Busindia.com in partnership with the Central Institute of Road Transport (CIRT). Radiant Info, is also credited with the launch of India’s first online bus ticket reservation system in 2006 for Karnataka State Road Transport Corporation (KSRTC). BusIndia.com has already integrated 16 transport corporations from Karnataka, Tamil Nadu, Uttar Pradesh, Punjab, Odisha, Meghalaya and Gujarat in Phase 1. Shortly, Phase 2 will see the inclusion of transport corporations from Andhra Pradesh, Rajasthan, Maharashtra, Jammu & Kashmir,

Goa, Puducherry and Goa along with other state-owned transport corporations. Inaugurating the portal in New Delhi, Oscar Fernandes said, “It gives me great pleasure to offer Busindia.com to all citizens of India and anyone across the world who wishes to plan bus travel in the country. This is an important milestone in transportation services in our country and I am proud that we have been able to achieve this. I compliment the efforts of Radiant Info and their team who have relentlessly worked over several years to integrate all state services into one single portal.”

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HIGHLIGHTS

Faurecia and Magneti Marelli sign cooperation agreement Faurecia and Magneti Marelli have entered into a cooperation agreement for the design, development and manufacturing of advanced human-machine interface (HMI) vehicle interior products. The agreement will increase the added-value of the interior business solutions that Faurecia and Magneti Marelli provide to automakers and end-customers. Faurecia is the world’s sixth-largest automotive equipment supplier with four key Business Groups: Automotive Seating, Emissions Control Technologies, Interior Systems and Automotive Exteriors. Magneti Marelli is an international Group committed to the design and production of hi-tech systems and components for the automotive sector. Through this agreement, Faurecia and Magneti Marelli expect to further expand their business portfolios in interior systems, adding HMI solutions to a broad product range including centre stacks, fascias and overhead consoles, retractable touch screens and displays or the physical integration of nomadic devices such as smartphones and tablets. The partnership draws on the combined expertise of Faurecia and Magneti Marelli. Faurecia brings its expertise as the world’s No.1 full-supplier in interior systems module architecture, whereas Magneti Marelli brings its extensive skills in the fields of displays, electronics, switches and tactile functions. Joining their skills and know-how will allow the partners to provide a wide range of solutions with innovative materials, mechatronics and natural interfaces. “This is an important step in the evolution of our interior

18 / December 2013

systems offer to meet the needs of automakers for increased connectivity and the intelligent use of interior architecture,” said Yann Delabrière, Chairman and CEO of Faurecia. “This agreement leads to a new era of human-machine interface integrated solutions, where the user experience of receiving, managing and sharing information inside the car, is moving to a unique, interactive and extended interface, where the merger between plastics and electronics is crucial”, said Eugenio Razelli, CEO of Magneti Marelli. The partners are already actively pursuing the first business applications with European, North American and Asian automakers in the fields of high-quality retractable touch screens and nomadic devices integration. Whether fixed or retractable, displays are ever more present inside vehicles, growing in size and becoming increasingly tactile. This new cooperation between Faurecia and Magneti Marelli provides the ability to integrate, seamlessly and with premium quality, mobile devices in instrument panels, centre consoles or docking stations. Faurecia aims at further reinforcing its worldwide leadership in vehicle interiors by offering the physical integration of mobile devices, as smartphones, tablets and others. Faurecia is already offering wireless-charging components through its partnership with PLDS (Philips & Lite-On Digital Solutions). Magneti Marelli aims at reinforcing its leadership in automotive electronics through the ability to implement complete

HMI solutions (voice, touch, display) able to support automakers in terms of style, functionalities and physical integration of consumer devices. Going forward, the cooperation

will open the door for HMI applications with superior plastronics look and feel, fusion of control technologies, enhanced digitisation and customisation.

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Fall - Winter Collection

2012 Range Rover Sport Supercharged

2011 Aston Martin Virage Limited Edition

2013 Bentley Continental GT

2012 Range Rover Evoque – Prestige

2011 Mercedes CLS 350

2010 Porsche Panamera 4S


HIGHLIGHTS

ZF Technology powering motorsports in India

As one of the world’s leading automotive suppliers, ZF is involved in motorsports. ZF Race Engineering develops designs, builds, and markets shock absorbers and clutches especially for racing and high-performance series-production automobiles. Today the Volkswagen Polo R Cup racing cars are being equipped with ZF Shock Absorbers. ZF is also the official sponsor of Volkswagen Polo R Cup 2013 and is keen on further taking the technology ahead to promote the sport in India which is in the developing stages. ZF’s association with Volkswagen Polo R Cup India started with the debut series. Since then all the racings cars have been equipped with the ZF Shock Absorbers,

20 / December 2013

specially designed by the ZF Race Engineering team. In all product areas, the development goals of ZF Race Engineering are to Reduce dimension, Reduce weight and Enhance performance Since the company’s existence, components, dampers and clutches have been used in series production as well as in motorsports. Both areas were and still are inseparably interconnected. Just like the success. Starting with the renowned silver arrow, and continuing today with Formula 1, for long distance and circuit racing events. Worldwide motorsports teams rely on racing shock absorbers and clutches from ZF Race Engineering. From

Formula 1 to the Rally Dakar and amateur racing series teams are successful with ZF’s cutting edge technology. Through its initiative with Volkswagen Polo R Cup, ZF is further contributing towards the development of motorsports sector in India. Dr. Stefan Sommer, CEO of ZF Friedrichshafen AG, comments: “The connection between ZF and Volkswagen Motorsports in India is an extension of the global association between these two partners. With the partnership we are able to point out our prominent competencies as a development partner and technology leader in motorsports. We furthermore aim to contribute to the further evolution of motorsports in

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HIGHLIGHTS India using the experience and expertise we have gained throughout the world, especially in Europe.”Key features of the technology used in the cars for the Volkswagen Polo R Cup 2013: Monotube gas pressure technology (standard in highperformance sports suspensions), ensures precise handling, One way adjustable dampers with 18 clicks; adjustment varies overall damping ratio in both bump & rebound curves. Availability of Vehicle ride height adjustment presents wide range of vehicle setup options. Precise and

repeatable vehicle setups available within the broad adjustment range. Enhanced vehicle responsiveness and grip during high speed driving. High-quality surface finishing for long-lasting corrosion resistance even when used in the most demanding of conditions. Speaking about the technology and his experience Rahil Noorani, professional motorsport driver who is currently second in the standings of the Volkswagen Polo R Cup 2013 noted, “Suspension is one the most crucial elements of a car and becomes even

more important when it comes to performance driving. In Cup Racing, the suspension plays a major role in the handling of the vehicle and is responsible for tackling high speed corners. The ZF shock absorbers in the Polo R Cup race car have been giving a fantastic feedback with technology that has taken racing experience to a new level. This has helped me in improving my performance race after race.” ZF is a leading worldwide automotive supplier for Driveline and Chassis Technology with 121 production companies in 27

countries. ZF has been operating for over three decades in the Indian market. Currently, ZF’s presence in India consists of 10 plants spread across Pune, Pantnagar, Gurgaon, Chennai, Coimbatore and Madurai, which have employee strength of close to 3000. The components and systems manufactured in India cater to a wide segment of applications from Construction and Mining sector to Automotive, Commercial vehicle, Wind energy, Marine,Aviation,Defence, Test Systems and special driveline technology.

SKF new Solution Factory in Manesar SKF India has announced the inauguration of SKF Solution Factory in Manesar, Gurgaon. This is SKF’s second SKF Solution Factory in India, the first being in Pune, which is the central facility in India. The Manesar facility will serve as the local unit and focus on spindle repair, reconditioning and maintenance services It will serve the automotive manufacturers, ancillary manufacturers and industrial machinery customers in the region with competencies across SKF’s five platforms and specific asset management and maintenance services. SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 15,000 distributor locations worldwide. Services are one of the key businesses of SKF in India which includes machine development and design verification, remanufacturing to reconditioning, integrated maintenance solutions, training and remote diagnostics

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monitoring. The new facility at Manesar is key to SKF’s overall business plans to take SKF’s maintenance consulting and asset management services closer to customers, reducing time of delivery and speed of service deployment, complimenting SKF India’s leadership in the market. “Today, most organisations are facing cost pressures on rising energy consumption, input costs and repair and maintenance costs. SKF Solution Factory is a unique global proposition through which we deliver our services combining SKF’s knowledge, experience and technology. Over the years we have seen a rising demand for our maintenance and asset management solutions and going forward we see this as one of the key drivers of growth in addition to our products”, said Shishir Joshipura - Managing Director and Country Head, SKF in India. Commenting on the launch, Sudhir Rege – Director, South Asia – Regional Sales and Services, SKF said, “SKF operates in a spectrum of industries and therefore is well equipped to understand that in today’s business environment, effectively managing assets

throughout their lifecycle can deliver real term on-going value to reduce Total Cost of Ownership. SKF Solution Factory combines SKF’s technology, global and local knowledge of machineries, equipments and experience across geographies and acts as the gateway to long term asset efficiency and reliability. The new facility at Manesar is a key step to deliver SKF knowledge to customers locally and focus on solutions in addition to products.” SKF Solution Factory is a unique proposition from SKF where people and technology

come together to create optimized asset performance across industries. SKF engineers apply knowledge and services to design, create and deliver custom solutions to toughest productivity challenges. At every stage of the asset life cycle, SKF products, advanced services and solutions help customers improve productivity, reduce maintenance costs, improve energy and resource efficiency. SKF also offers consultancy services to optimize designs for long service life and reliability, ultimately helping to make machines more productive, sustainable and profitable.

December 2013 / 21


HIGHLIGHTS

Eicher unleashes the ‘Go Pro’ magic in Indian CV market

Report: P.Tharyan, Photography: Mohd. Nasir In a serious bid to end the stranglehold of the existing duopoly in the heavy duty commercial vehicle market in India, VE Commercial Vehicles Ltd (VECV) has unveiled the ‘Eicher Pro’ series of trucks and buses at a mega function in Pithampur near Indore in Madhya Pradesh. The 11 future generation trucks and

22 / December 2013

buses, covering the entire 5 to 49 tonne gross vehicle weight range, would be launched in a phased manner in the country beginning February 2014. VECV is a 50-50 joint venture between the Volvo Group and Eicher Motors Limited. In operation since July 2008, the company includes the complete

range of Eicher branded trucks and buses, VE Powertrain, Eicher’s components and engineering design services businesses, the sales and distribution business of Volvo Trucks as well as aftermarket support to Volvo Buses in India. “At Eicher we feel there are other problems, especially in the

heavy duty segment. They do not get proper support from their partners which are the OEMs or the truck sellers. The Eicher brand has been pushing that frontier in the light and medium duty segment for decades now. We have brought it to a level where the service is really great. But in heavy duty we feel that

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HIGHLIGHTS

Siddhartha Lal, Managing Director and Chief Executive Officer, Eicher Motors Ltd. (Left), and Joachim Rosenberg, Executive Vice President, Volvo Group Trucks Sales & Marketing and JVs, Asia Pacific with emcee Roshan Abbas

the market is very underserved. There’s been a duopoly for the last six decades. We believe that they take their customers for granted. That cannot be the case anymore. The time is now to change Indian trucking and to change heavy duty trucking in particular. We want to take trucking from a bit more

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amateur level or the “chalta hai” level to a professional grade where your partner gives you professionalism,” said Siddhartha Lal, Managing Director and Chief Executive Officer, Eicher Motors Ltd at the unveiling function. Emphasising on the relevance of Eicher ‘Go Pro’, Lal affirmed, “There is a professional product,

professional support, and very importantly, a professional attitude. That’s what Volvo and Eicher have been working on for the last five years to modernise Indian trucking. We have set the foundation. Now we are ready to unleash what we believe is real professional grade products and professional grade support.

That’s our mantra. That’s what we are calling Eicher Go Pro. We are telling our customers that you have a professional option now”. “It’s what we are delivering to the customer in a very different way. We have been in business for decades. The combined experience of trucking for Volvo and Eicher together is more than

December 2013 / 23


HIGHLIGHTS

We were very clear from Day One that if we have to become big in the CV industry, we will need a strong partner. We were fortunate to tie up with world’s No. 1 truck company, Volvo and thus came into existence VECV in 2008. For the customers, the first major thing for them is the fuel efficiency offered by our products. We are known in India as “mileage ka badshah” -Vinod Aggarwal

a century. What we are bringing on the table is very different. It’s giving the customer a type of support which he is not been used to until now. The duopoly does not treat its customers very well, in our opinion. We will make sure that the customer has his peace of mind. This is what the entire professional attitude will get us. Prosperity in business is what they are looking for. I now strongly believe that we are the future of Indian trucking,” he told the gathering. In his address, Vinod Aggarwal, Chief Executive Officer, VE Commercial Vehicles Limited noted, “This has been a revolution. Right from day

24 / December 2013

one when we started Eicher Motors in 1986, we have been revolutionising the trucking industry in India. When we introduced the Canter brand of trucks in 1986 that time we revolutionised the light duty trucking industry. The name Canter became almost synonymous with light duty trucks. In mid-1990s we revolutionised the medium duty truck segment. We were the first ones to introduce 9 tonne, followed by 11 tonne, 12 tonne, 13 tonne and 14 tonne trucks. We were the pioneers in introducing all the trucks in the medium duty truck segment. Again in 2002, we were the first ones to introduce

2016 model in the heavy duty truck segment. We are always ready to take on new challenges. We were very clear from Day One that if we have to become big in the CV industry, we will need a strong partner. We were fortunate to tie up with world’s No. 1 truck company, Volvo and thus came into existence VECV in 2008. For the customers, the first major thing for them is the fuel efficiency offered by our products. We are known in India as “mileage ka badshah”. Our products are known for best in fuel efficiency. Speedier uptime is also important for them. We have to ensure that our products are on the road always. Our products

have to be reliable and we have to give them best in class services. We are offering world class technology at right cost”. Aggarwal said that the new products would be launched from February 2014. “In the next 18 months we shall have all the products on the road. This will be done in a phased manner. The existing products will continue till we replace them with the new ones,” he added.

EICHER PRO SERIES While continuing to address the large sized value segment, the new range also marks the entry of Eicher brand into the

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HIGHLIGHTS emerging premium segment that requires higher power and torque combination as well as a greater degree of refinement and sophistication. With a completely new Pegasus-based front styling across the product family, the new range of vehicles are a quantum leap in each and every aspect, from exterior design to engine technology to cabin features. The new heavy duty range of trucks revealed will be powered by new generation engines adapted from Volvo Group technology with power capacity of 180-280 hp with high fuel efficiency, reliability and long life. In a special message relayed during the event, Olof Persson, President and Chief Executive Officer, Volvo Group said “The trucks launched today are the embodiment of our joint efforts over the last five years. The vital combination of the Volvo Group’s world class technology and the frugal cost expertise and management of Eicher has created a range that will

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set new standards amongst customers with high demands on profitability, flexibility and driver effectiveness.” Joachim Rosenberg, Executive Vice President, Volvo Group Trucks Sales & Marketing and JVs, Asia Pacific and Philippe Divry, Senior Vice President, Trucks Joint Venture India were also present at the occasion. Rosenberg, said, “Today Eicher is considered as the 5th brand in the competitive portfolio of Volvo Group brands. It is an integral part of the Volvo Group’s strategy to expand in Asia and other growth markets. With the launch of the Pro series of trucks by Eicher, our strategy in Asia gets further strengthened. With the improvement in infrastructure and road network in India, there is a requirement for more effective transport chains. The new Pro Series of trucks being revealed today is in a prime position to meet these requirements”. “When I compare the evolution of the trucking industry in India with other markets globally,

Vinod Aggarwal Chief Executive Officer, VE Commercial Vehicles Ltd. it is now time for India to Go Pro. And when I also see what has happened in other markets that have gone pro, and when I meet entrepreneurs who had the

courage to go pro, and when I compare their success with the performance of others, then I realise the time has come for India,” noted Rosenberg.

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COVER REPORT

NIPMAN FASTENERS A Gripping Story

S

Report Avishek Banerjee, Photography Mohd. Nasir

ometimes in the midst of all the din and action of speeding vehicles, people tend to forget the hundreds of tiny parts that play a critical role in strongly holding together the mighty machines on the move. These small parts could be engine studs, flange screws and bolts, studs, weld screws, pan head screws or hex head collar screws and bolts. These parts literally make up a gripping story when it comes to the world of automobiles. At Nipman Fasteners, the gripping story is an everyday affair. Nipman Fasteners Industries Pvt. Ltd., a Delhi-based firm, plays a pivotal role when it comes to manufacturing critical components for the automotive industry. Founded by Pravin Malhotra in 1997, Nipman is one of the leading manufacturers of high-tensile automotive

26 / December 2013

fasteners in India supplying various kinds of screws, bolts and studs to OEMs, tier I and tier II suppliers in India’s automotive space. The homegrown fasteners making firm manufactures some key products like engine cylinder studs, flange screws and bolts, hex head screws and bolts, round head screws and bolts etc. It is currently running its plants in Ghaziabad (at 250 tonnes per month), Manesar (at 350 tonnes per month) and Haridwar (at 350 tonnes per month). It is setting up its fourth plant at Bawal (at 350 tonnes per month), which will go on stream by April 2014. The other two plants are likely to be established at Gujarat and Tamil Nadu. Currently, it is churning out around 1,000 tonnes of fasteners per month which will be scaled up to around 1,300 tonnes per month in the first phase and to 1,600 tonnes per month in the second phase.

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COVER REPORT

PRAVIN MALHOTRA, MD, NIPUN MALHOTRA, ED, Nipman Fasteners www.motownindia.com

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COVER REPORT The company is also going ahead with its 250 crore investment that will be spent on setting up greenfield facilities, building new capacities, entering new product lines, enhancing output and also buying out assets or firms. After pumping in the said amount, the auto component firm would probably go for an IPO

by the end of this decade. In an exclusive interaction with Motown India at the company’s corporate office in Delhi, Pravin Malhotra, Managing Director, Nipman Fasteners Industries Ltd. said, “We are a 130 crorecompany heading towards a 150 crore-turnover in this fiscal. The fastener industry (in India)

has a lot of potential. We have strategies in place to take us to 650 crore in the next 4-5 years. We have also allied with AON Hewitt (a strategic consultancy firm) for ramping up our operations. To further our goals, we have already earmarked 250 crore for the next 5 years or so. A large chunk of that amount will

be deployed for building three manufacturing facilities in the country.” “We want to be a national company. We have organic growth plans in the southern part of India at Tamil Nadu and Gujarat in the western part. Although one of the multinational giants has approved us for their global

Nipman’s sprawling facility in Haridwar

28 / December 2013

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COVER REPORT requirements, we can’t set up a plant in European countries as it can be catered to from an economical base like India, Vietnam, Brazil and Indonesia. So we might set up production units in Asian nations to serve developed markets,” he added.

INCREASING ITS

FOOTPRINT In order to take his company national as well as global, Pravin Malhotra has brought in his younger son Nipun Malhotra, who does his bit more than what is expected from a second or third generation entrepreneur. He has been mandated to ensure that the

Somebody’s (global OEMs’) problem is actually your solution provided you have your act together and are geared for that. - Pravin Malhotra company adopts a state-of-the-art technology and deploys world class best practices in its manufacturing processes to achieve the best in quality, cost and delivery. “I am heading procurements and IT operations at Nipman. I am into cost reduction drive and am having a centralised purchase department for all the existing plants. I also review the morning Dynamics Window Manager (DWM) and review the daily operations of all three existing plants. Other than that, we have a vision to make Nipman a paperless company and that too a totally automated one. That’s why I am helping out with the IT. I review the kaizen that happens at each plant on a daily basis. I also head the most strategy initiatives of the company,” stated Nipun Malhotra, ED of Nipman Fasteners. “We started as a lean manufacturing company with best-in-class practices in the industry. Those best practices at the shop floor are helping us during the current downturn in the industry. Unlike the (auto component) industry, we have actually grown in our business. Somebody’s (global OEMs’) problem is actually your solution provided you have your act together and are geared for that. The multinational giants have not been able source components domestically that are in tune with global standards. So we have suddenly become attractive for them. We have created the foundation for a long time and believe in having long term alliances rather than getting too many customers. All this is of course based on the Quality Cost Delivery (QCD),” pointed out Pravin Malhotra. Some of the leading customers of Nipman are Hero MotoCorp Ltd. and its entire supply chain like Subros, Munjal Showa, Autofit,

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December 2013 / 29


COVER REPORT

Anup Kapur, VP-Business Development & Marketing, Nipman Fasteners Industries Ltd Krishna Maruti, Trelleborg, Unitech Machines, Sandhar Technologies, Rockman Industries, Sunbeam Auto, Omax Autos, Rico Auto, among others. It also specialises in the manufacture of safety studs and bolts. In addition to that, it is also supplying its products either directly or indirectly to HMSI, TVS and India Yamaha limited (IYL). Plans are afoot to widen its base to premium and super-premium bikemakers. “Until now, we were tier I and tier II suppliers to Hero MotoCorp and other mass-market two-wheeler manufacturers. And now we are gearing up to garner orders from Triumph, Royal Enfield and Harley Davidson for its premium and also high-end bikes in India,” the senior Malhotra revealed. In the four-wheeler space, Nipman is already serving Maruti Suzuki, Ford India, Tata Motors and M&M and will start delivering to Renault-Nissan alliance for its upcoming A-segment car that will be built in Chennai. By next year, a number of domestic tractor makers will start placing orders from them.

IN TUNE WITH GLOBAL STANDARDS In addition to enhancing its operations, the company is also zeroing in on the product development activities to come out with nextgeneration products which are in tune with global standards. Anup Kapur, VP-Business Development & Marketing, Nipman Fasteners Industries Ltd, said, “In the next few years, we will be running multiple plants that can service multiple OEMs and their supply chains. As we go national and global, we would like to progress from ‘build-to-print’ towards ‘design-to-delivery’ offerings in the future. To meet that objective, we have opened a satellite R&D centre wherein a small batch of engineers is stationed to develop global products. That will help us in becoming a holistic fastener designing solutions firm. We are also collaborating with a couple of overseas firms to devise such solutions. It will help us in developing products which are high in quality but low in costs.” Although the fasteners segment will remain its core business,

30 / December 2013

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COVER REPORT

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December 2013 / 31


COVER REPORT

32 / December 2013

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COVER REPORT

The Malhotras with the company’s senior management

plans are afoot to diversify into new product lines which have some sort of backward linkages. Said Pravin Malhotra, “By 2017-18, the fasteners business would itself clock around 300 crore out of 650 crore and the balance would be derived from cold forging/ cold forming technologies. We are inking a technical alliance with some specialists based in South Korea. We are going to leverage on such technologies to make components for the automobile industry such as cold formed steering systems and transmission shafts. We are also looking to diversify into the powertrain segment i.e. the steel parts requirements which mean forged or formed components.” Nipman Fastener Industries Pvt. Ltd, which has been manufacturing standard and special fasteners for the automotive and auto component industry for quite some time, has neither any plans to foray into the aftermarket vertical nor it intends diversifying into the industrial segments in the near term. Even though Nipman is an owner-driven and professionally- managed company, it has earned the rare distinction of zero attrition rates since its inception. When asked to spell out the vision of the company, all the three (Pravin Malhotra, Nipun Malhotra and Anup Kapur) unanimously affirmed, “Nipman is a supply chain partner of choice for the leading auto and auto component manufacturers. Our philosophy is to ‘Achieve best to give the best’ and our multi-locational plants have self- directed teams which work closely with the customer to give best services.”

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INDIA REPORT

JK Tyre to invest `1,430 crore; Eyes organic growth in S.E. Asia Report: Avishek Banerjee, Photography: Mohd. Nasir

I

ndia’s leading tyre manufacturer JK Tyre and Industries will be pumping in 1,430 crore to ramp up capacity at its Chennai manufacturing facility which makes radial tyres for trucks, buses and cars. The fresh investment will boost annual capacity to 4.8 million radial tyres a year, allowing it to take advantage of rising demand for radial tyres in the CV segment. Furthermore, the 6,000+ crorefirm has also earmarked 140 crore at its Mexican subsidiary Tornel to ramp up its output by 18pc from its present capacity of 3.2 million tyres. The expansion will boost employment by 50pc to 7,500, the company said. The investment will be funded by internal accruals, debt and equity. The expansion will support JK’s drive to expand its annual revenue to US$ 1.6 billion by 2015, up nearly 45pc from the fiscal 2013 level. “Despite turbulent market conditions, we are going ahead with our expansion plans. This is because the economic downturn in the automotive industry would not continue for very long. We have earmarked capex of 1,430 crore to increase our truck and bus radial capacity by additional eight lakh tyres per annum and car radial capacity by another 20 lakh tyres per annum at the Chennai plant,” said JK Tyre & Industries President and Director A. K. Bajoria. He added, “In the first phase of expansion in our Mexican subsidiary Tornel, we are investing 140 crore in next 10 months,” he added. He also stated that ‘Tornel’ branded tyres

34 / December 2013

A. K. Bajoria, President & Director, JK Tyre & Industries

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INDIA REPORT will also be launched in India. The Indian tyre major is also exploring the possibilities of acquiring a company or plantations in the South-East Asian regions for 150 crore. However, Bajoria was reluctant to divulge details, “We are looking at multiple options and are exploring feasibilities for acquisitions in the South East Asian region but nothing has been decided yet.” However, he clarified, “Right now, we are not interested in any American firm as

JK Tyre may foray into 2-wheeler, aviation segments On the sidelines of launching its brand-new products, JK Tyre has said it is now developing products for the two-wheeler segment and aviation segments. V. K. Misra, Technical Director, JK Tyre & Industries Ltd said, “The discerning customer today wants more for less and it is our endeavor to constantly innovate and develop products that cater to their requirements. For JK Tyre, customers are at the core of all R&D and we are committed to designing products that make driving a real experience for them. And we are capable enough to come out with bike or aviation tyres. However, their commercial rollout has not been crystallised.”

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(L to R) A K Bajoria, Vikas Misra, Technical Director, Vikram Malhotra VP, Marketing & Sales, JK Tyre

we have already gained a toehold there (through Tornel acquisition in 2008).” Meanwhile, JK Tyre has also rolled out 10 new products straddling different product segments like passenger cars, truck and light commercial vehicles which will boost its total turnover by another 300 crore. The new tyres include the Ultra High Performance car tyre range called UX1 designed for high-end luxury cars such as Audi, BMW and Mercedes and a new Ultima NEO range for hatchback cars claimed to offer fuel savings. The company is currently churning out these products especially for the aftermarket vertical from its existing facilities at Karnataka,

Tamil Nadu, Rajasthan and Madhya Pradesh. “The automotive market in India continues to offer promising opportunity for growth to all and with the launch of this new range, we are hopeful of increasing our market share in high-performance tyre segment significantly,” Bajoria said, adding, “We have also started supplying tyres to Volkswagen group to their worldwide plant from India.” According to Vikram Malhotra, VP (Marketing and Sales), the tyre maker has added the Honda Amaze as a customer and is in talks with Hyundai Motor India

for supplying to a new vehicle that will come into the market in 2014-15. It is also looking at a couple of more OE orders for instance, from Ford in India and also overseas. JK Tyres already supplies to Nissan, Volkswagen and John Deere in India. It will also be supplying to them in Mexico and will become their worldwide partners wherever they go. Chrysler is also a customer being supplied from Mexico. Many OEMs are moving to Mexico and hence its importance as a growing auto hub.”

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INDIA REPORT

EXCON 2013 gives impetus to construction equipment industry in South Asia

A

Report: Jayashankar Menon, Photography: CII t a time when market slowdown is being felt across the globe, the four-day Excon 2013 exhibition held at Bangalore International Exhibition Centre (BEIC) in Bengaluru, the capital city of the

36 / December 2013

south Indian state of Karnataka spread optimism amongst stakeholders. Held from November 20-24, 2013, Excon 2013 the seventh edition of South Asia’s largest event for construction equipment sector brought in lot of cheers amongst the industry players. Organised by the India’s leading industry body, the Confederation

of Indian Industry (CII), the fourday event was also supported by Builders Association of India (BAI). The Government of Karnataka played the role of Partner State. The exhibition came at a time when the business horizon looked so bleak, due to the market slowdown, rising inflation and a volatile currency fluctuation. In fact, it was a perfect platform for

all the players in the construction equipment industry to meet and network besides generating new businesses. Many new vistas were opened at the exposition as the participation of exhibitors was in excess of 900. Out of this, 300 odd firms from overseas markets took part in the four-day extravaganza. The exhibition saw the launch of

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INDIA REPORT more than 100 products. There were seven country pavilions including Germany, Japan, Italy, Sweden, Turkey, South Korea and China. Excon 2013 also witnessed a large presence of CEOs and senior management officials, a corroboration of the optimism that was pervading the sprawling BIEC, promoted by BAI. The event saw a footfall of around 35,000 business visitors. The exhibition display area at BIEC was pegged at 220,000 square metres. There were a slew of conferences that were held concurrently by bodies such as Indian Construction Equipment Manufacturers Association (ICEMA), BAI and the CII. If the proof of pudding is in the eating, the presence of several international buying delegates indicated the sure sign of revival of the construction equipment

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industry. This exhibition also created export opportunities and further identified new distributors.

INDIAN INFRASTRUCTURE SEGMENT A background note of Excon 2013 stated that the Indian economy was getting bigger and better. “Going with the estimates that Asia’s third largest economy will become the world’s third largest by 2050, it is therefore pertinent that a need for more robust and vast infrastructure is inevitable. Spanning from roadways to airways, ports to airports and power production facilities, Indian infrastructure segment is the thrust for the development of the nation and hence enjoys intense attention from top-grade policy makers of the country”, the note stated. Quoting IBEF, the note

further said that infrastructure investments were among the main growth drivers of the construction equipment industry. The Planning Commission of India estimated a total infrastructure spending of about US $428 billion during the Eleventh Five Year Plan (2007-12), foreseeing to double India’s infrastructure investments to an estimated $1 trillion for the Twelfth Plan (2012-17). The Government of India has granted sops, including a large number of Special Economic Zones (SEZs), to the capital goods industry of which construction equipment is a part; especially with an impetus to increase exports. Almost all global technology leaders in the construction equipment sector have a presence in India - either as joint ventures or with their own manufacturing or marketing entities. The cumulative foreign

direct investment (FDI) inflows (since April 2000) into earth moving equipment touched $ 170.3 million as of 2012”, the note said. The demand for construction equipment in India is poised to log a growth of $6.3 billion by 2014, a compound annual growth rate (CAGR) of 19.3pc (from 2010), said the note. India is expected to be firmly established as the third largest market in the world for construction equipment as number of machines will grow to 114,165 units in 2016, it added. The Excon 2013 took place against this background, with a theme: ‘Propelling Sustainable Infrastructure Growth’.

SHOWCASING INDIA’S ACHIEVEMENTS Oscar Fernandes, Minister of Road Transport and Highways showed

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INDIA REPORT

Oscar Fernandes, Minister of Road Transport & Highway accompanied by his wife and senior industry leaders at Excon 2013 his appreciation for the Excon 2013 show, stating that though the exhibition of Excon has been organised at a time when there is a downturn in the world and India’s economy, it is heartening to see that CII has been successful in bringing in people from all over the world in such great numbers to showcase India’s own achievements in developing such equipment for infrastructure growth. Fernandes highlighted that time management is a very crucial factor in the efficient project implementation and all large infrastructure projects should have a project management system for speedy implementation. It is a very poor management if a project of three years takes 10 years to complete. Speedy management also makes a project economically viable and profitable, he said. “At present, the Government has started work on several new infrastructure projects including three airports, two ports, an elevated rail-corridor in Mumbai, and almost 6,000 miles of new roads. We are also planning to build expressways through

38 / December 2013

innovative financing models,” Fernandes said. He said his ministry would speed up several key road projects as part of providing the much needed rejuvenation to the construction industry. The Minister also laid emphasis on public private partnerships and added that the government was

looking at long term vision of having maintenance free roads. Furthermore, it will take all efforts to recover the investments made on such major road projects, he said. “In one of our major projects, the government is inquiring about the newer technologies that could eventually save time spent in toll

gates. Also, we have introduced the state of the art technology through a mobile phone, where a person can pay the toll. Currently, this project is under trial and after validation this would be put into practice. What is more, the person who is driving the vehicle can establish contact with the toll gate officials almost a kilometre or 800 kilometres nearer to the toll gate. This would eventually help in saving lot of time spent at the toll gate. By the time the vehicle reaches the toll gate after the driver informing the officials of the toll gate 800 metres away, the toll gate would be open to the vehicle,” he said. He further stated that the work of Bangalore International Airport Expressway will be over by January 26, 2014. In his message, the Chairman of Excon 2013, Vipin Sondhi, who is also the MD & CEO of JCB India, said: “Several analysis and reports indicate that the Earth-moving and Construction Equipment Market is one of the most dynamically growing segments worldwide, more so in India. Backed by the Government’s keen and consistent focus on developing the country’s infrastructure in order

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INDIA REPORT to holistically progress, indeed the segment is phenomenally evolving and is deploying the best of machines, technology and manpower to raise its standards to global levels”. Speakers at the event were of the opinion that the infrastructure sector needed a fillip as it was facing the impact of the market slowdown for quite some time now. Infact, the infrastructure development has direct correlation with the gross domestic product of India. S. Gopalakrishnan (Kris), President of the Confederation of Indian Industry said that the absence of adequate infrastructure has impacted the country’s GDP by around two percent. “As there is a consistent dip in the credit flow to the construction sector, the need of the hour is to ramp up the share of institutional lending to this segment”. Speakers at the event opined that the establishment of a regulatory mechanism sans constant intervention of both bureaucrats and politicians. The regulatory body should function independently, they said.

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AMW MOTORS LTD AMW Motors Ltd. (AMW) announced the expansion of its high performance transit mixer range with the introduction of all new 3118 TM. AMW is the leading manufacturer of heavy commercial vehicles in the country with a client list of all

leading RMC manufacturers and construction companies. Currently over 2500 AMW transit mixers are operational across the country. The 3118 TM vehicle comes with a max capacity of 10 cu. mtrs on a 8X4 drive line configuration and is powered by the most reliable and fuel efficient 180 hp

engine. The 3118 TM vehicle is fitted with the world renowned 9 speed gear box with crawler gear for best in class gradability of 28pc and heavy duty axles. It has a special CED coating to avoid corrosion from harsh operating environments and the chassis is made of heavy duty frame with 7+7 mm double flitch. The new product is fitted with AMW’s proven bogie suspension for carrying heavier loads in any type of road conditions and reduced maintenance cost and provides best in class cabin comfort. AMW is the only manufacturer to offer AC and sleeper berth as standard in transit mixers. The visibility is excellent for easy driving in urban areas. AMW has entered into a strategic tie-up with all leading manufacturers of transit mixer drums. The transit mixer displayed had a separate slave engine which acts as a failsafe in case of main engine failure while transporting concrete to prevent expensive drum repairs. It also had the highest load capacity of 10 Cum of concrete. R N Rao, Director Marketing,

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INDIA REPORT AMW Motors Ltd. said “India is witnessing increase in penetration of the ready mix concrete in the growing infrastructure industry. Addressing this growth, we have expanded our transit mixer range with the introduction of all new 3118 TM at EXCON 2013, Bengaluru. We are delighted at the initial response and are confident of growing our volumes and market shares in the transit mixer segment with a comprehensive range.” ASHOK LEYLAND JOHN DEERE Ashok Leyland John Deere Construction Equipment Company, the joint venture between the Chennai-based Hinduja Group’s Ashok Leyland, the flagship firm, which is involved in the manufacture of commercial vehicles and the US major John Deere, launched the 435E Backhoe Loader (BHL).

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The product launch comes at a time when the current economic conditions demand even more cohesive focus on efficiency and operating cost. Focused on these needs, Leyland Deere launched the 435E Backhoe that is specifically targeted at first time users, offering them 10pc improvement in fuel cost. The 435E delivers superior value by addressing a customer’s core needs of higher fuel efficiency, superior reliability and durability, greater machine uptime and lower operating cost. Its rugged structure ensures performance under the most demanding operating conditions. Dr V. Sumantran, Chairman of Ashok Leyland John Deere Construction Equipment Company said: “With the ‘E’ standing for ‘Efficiency’, the 435E BHL is best positioned to cater to new entrepreneurs in infrastructure and construction industries.”

P. Ravishankar, CEO - Ashok Leyland John Deere Construction Equipment Company added: “We have made significant progress in product development and channel growth with 155+ touch points, and have acquired over 1,000 delighted customers in our two years of operations. The 435E BHL is a winning proposition, especially for first time buyers. Our innovative and strong CARE service, our increasing footprint and continued focus on customer needs, will definitely increase customer ROI”. ATLAS COPCO Atlas Copco is foraying into the on-site generator segment in India for the first time with the unique selling proposition of Predictable Power, now with a new generator range, made in India. This and other products were displayed at the Excon 2013 exhibition.

In terms of the breakthrough technology, Atlas Copco brought a unique generator concept. As the pure synergy product with the Atlas Copco portable compressor, the new QAX range uses the same XAHS186 box and all the design strengths required for all heavy duty mobile applications. A proven concept, long term experience in the Indian market will be easily recognised by the end user along with compressors. In order to achieve the optimal sizing and fit a smaller model for the same application/ load, QAX range features an optimal combination engine: alternator that includes a digital type AVR able to control/limit starting currents. Furthermore, the compliance with CPCB will bring strong design constraints on silencing and cooling performance. The company also launched bucket crushers - new, rig

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INDIA REPORT

mounted silent demolition attachments for efficient and economic recycling and crushing of all types of inert material on site. Atlas Copco Construction Tools division has decided to complement the Hydraulic Breaker Segment with silent demolition attachments to take full advantage of the construction and infrastructure boom in India. Indian cities are getting more and more congested and construction companies have the mandate to get the job done with minimal traffic obstruction and minimum inconvenience to citizens in the minimum possible time. Atlas Copco bucket crushers are an innovative answer to the burgeoning demand for mobile on-site crushing in recycle/crushing of construction and demolition waste, road construction, excavation and quarrying on today’s worksites.

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BEML BEML LIMITED, a public sector company under the Ministry of Defence, Government of India and a premier indigenous manufacturer of earthmoving equipment over four decades, put up a big show In the exhibition, BEML focused on construction equipment showcasing its range of equipment such as excavators, bulldozers, motor graders, backhoe loaders etc. BEML equipment are known for selfreliance, higher productivity, user-friendly and popular amongst contractors. Being a leader in the segment, the BEML’s construction equipment are fully indigenised and robust with improved versions. With its state-of-the-art R&D establishment, BEML has been launching, over the years, various equipment for improvised activities in the construction and

mining sectors. The latest of its innovative products launched recently are BH150E Electric Dump Truck and BE1800E Excavator. The company has attained advanced stages in the manufacture of 190 tonne Electric Dump Trucks and expected to be launched shortly. BEML has been catering to the needs of core sectors of national economy like mining, power and steel. For infrastructure and construction industry, BEML is supplying vide range of products including Bulldozers (BD85, BD80, BD65-1, BD50), Hydraulic Excavators (BE300, BE240HD, BE220, BE200, BE75), Wheel Loaders (BL200-1), Backhoe Loaders (BL9H, BL9H 4 X 4) and Motor Graders (BG605 A/I, BG405). The company has nationwide marketing network with eleven regional offices, 19 District Offices with spare parts depots for sales and service

of mining and construction equipment.. CASE INDIA CASE India showcased its market leading offering for the construction and road building industries, including the new backhoe loaders and compactors. Fabrizio Cepollina, CNH Industrial Construction Equipment APAC Vice President, said: “The construction equipment market in the Asia Pacific region has been growing steadily and this trend is expected to continue. With the aim of improving CNH Industrial’s presence in these strategic markets, we are investing in our product development and manufacturing facilities in India to support the growing demands of our customers in the region. The introduction of the new EX Series backhoe loaders is proof of our commitment for serving customers in the region with the best products and services that

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INDIA REPORT meet the requirements of their businesses”. Anil Bhatia, Director Sales and Marketing - CASE Construction Equipment India said: “We are expanding our offering for the Indian infrastructure industry with the introduction of the technologically advanced EX Series backhoe loaders and 1107 DX compactor. Our customers recognise us for proven product reliability and cost-efficiency. These two product lines have been developed to meet the specific requirements of our customers in terms of high fuel efficiency, high performance, comfort and visibility, serviceability and reliability”. CASE’s offering for customers in industrial, infrastructure and agriculture applications, in addition to the already popular backhoe loaders, also includes the successful skid steer loaders. On display is the SR 150 which, together with the SR 130 model, represents the new generation skid steer loaders launched by the company earlier this year. These award-winning compact and multi-purpose machines set new standards with premium power, increased torque and enhanced operator comfort and visibility. Also on display for the road construction industry was the 845B motor grader that features an FPT Industrial 6.7 litre engine with variable horsepower curves to match the requirements of various applications and deliver the best fuel efficiency. Completing CASE’s product display at the show was the 821F wheel loader, particularly appreciated in the mining and quarry industries. The F Series wheel loader delivers fast acceleration, fast cycle times, high travel speeds and productivity, together with reduced fuel consumption.

and the new 950 GC Wheel Loader as well as six other Cat machines. A comprehensive display of big iron, along with an expanded suite of technology products were on display, showing contractors in India and the region that Cat products are ‘Built For It’. In addition to the new excavator and new wheel loader, the nearly 1700-square-metre exhibit, stand OD6, showcased the 36-tonne-capacity 770G OffHighway Truck paired with the reliable 988H Wheel Loader to form a highly productive loading and hauling system. Additional machines included the versatile 424B Backhoe Loader and 120K2 Motor Grader. A C15 Generator Set and Cat work tools complement the earthmoving machines display. Additionally, Cat Connect Solutions— integrated technologies and Cat dealer service offerings designed for construction, natural resources and industrial customers—was introduced. The Caterpillar exhibit

presented machines and services for a broad range of applications and business situations. In addition to Cat machines, the exhibit included a Hindustan wheel loader. Hindustan is a Caterpillar brand of wheel loaders and trucks sold exclusively in India. DISA INDIA DISA India highlighted the Wheelabrator ‘Pass through Machine’ at the event - this pass through shot blasting solution can be harnessed for various applications like construction equipment, cranes girders, vessels, infrastructure parts etc. The machines were developed with the aim to prepare the surface for the painting needs and wheels are oriented in such a way that the maximum parts surface is exposed for the direct blasting. While designing the machine, new techniques were being utilised to simulate the job coverage parameters. Overall, DISA and Wheelabrator have delivered

ten machines of this family to various construction equipment and tower crane suppliers in India. The firm also announced the introduction of the DISA Silo Vent Filters which are specially meant for venting of silos fed with powdered products. The DISA Silo Vent Filters are specially meant for venting of silos fed with powdered products. They are also capable of filtering the product from the air during the conveying period and the air surge at the end of the cycle. These filters provide continuous filtration of high dust concentrations at high filtration velocities in an environmental friendly manner in almost any industry and application. EICHER Eicher displayed its exclusive range of tipper trucks and transit mixers such as Terra 25 9 Speed, Terra 25 RMC and Terra 16 XP. Eicher Terra 25 is a 25 tonne GVW construction tipper which is the part of ‘VE Series’, a new range of Value Enhanced, Fuel

CATERPILLAR Caterpillar showcased its new 320D Series 2 Hydraulic Excavator

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INDIA REPORT 155). The company also had a dedicated Innovation Centre at the stand that showcased a 3D virtual tour of JCB’s world class facilities. JCB ‘Livelink’ was also showcased and this technology will allow the user to monitor and manage the machines closely.

Efficient, Heavy Duty Eicher Trucks from VE Commercial Vehicles (a Volvo Group and Eicher Motors joint venture). Terra 25 is suitable for Construction, Crusheroutbound, stones, sand, land filling and surface transportation of coal. With the best-in-class torque of wheels and strong aggregates, Eicher Terra 25 is exclusively designed for transit of ready concrete mix. Smooth manoeuvrability, low maintenance and easy handling ensure that product delivers superior performance, economically and effectively. It is embedded with superior benefits like highestin-class torque at wheels and comfortable cabin ensure that the vehicle delivers more in every trip and features such as more pulling power and low turning radius make Terra 25 best suited for the mixer application. Terra 16HDR is a 16.2 tonne GVW tipper armed with features that make it a solid and rugged tipper in all terrains. Besides having better load carrying capacity, the vehicle also offers

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higher mileage, more number of trips and low maintenance cost. Terra16HDR is fitted with fuel efficient and powerful Eicher E683 engine coupled with heavy duty ET60 gearbox. Heavy duty ten bolt rear axle with 440 mm dia crown will provide great strength to the tipper and reduces maintenance cost. Terra 16HDR is coming with highest chassis cross-section and rugged suspension in its category to provide support to loaded body in all terrain. Its ergonomically designed day cabin and small turning radius makes a comfortable driving experience to driver to enhance productivity. This tipper is ideally suitable for blue metal, construction material, stones, coal, ore, sand, land filling applications. JCB INDIA JCB India Limited, leading manufacturer of construction equipment, unveiled around 19 made-in India, made-for India machines. JCB had the largest and most innovative display at Excon 2013, JCB India MD and CEO,

Vipin Sondhi said. The firm showcased its leading range of backhoe loaders with various new and upgraded variants. It showcased the JS81, JS120, JS205, JS145, JS360LC, JS220LC, JS205LR and JS30 Mini Excavator models. The company also introduced two new product lines — Loadalls (Loadall 7m and Loadall 11m) as a concept machine for India and Skid Steers (SSL 135 and SSL

MAHINDRA SONA Mahindra Sona displayed its comprehensive range of light and heavy duty propeller shafts, components, half yoke/coupling yokes, steering universal joints and flexible rubber couplings. These products are specifically developed and being supplied to construction equipment manufacturers, clutch assemblies and other driveline parts at the exposition. Mahindra Sona also displayed the state of the art 1710 and compact series heavy duty propeller shafts with serrated flanges (for which the company has forged a technical alliance with the Korean propeller shaft firm). Speaking on the occasion, Gaurav G Motwane, JMD and President of Mahindra Sona noted: “Mahindra Sona’s participation at EXCON 2013 is aimed at making deeper inroads into the construction machinery sector such as the backhoe loaders, pick-n-carry cranes,

Chandrajit Banerjee, DG, CII with Amit Gossain, Executive VP, JCB India

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INDIA REPORT slew cranes, bucket loaders/ shovels, motor graders, forklifts, vibratory screens, hydraulic pumps, concrete mixers and more, for which we offer custom built propeller shafts, coupling half yokes, universal joint assemblies for control valve operation, control linkages, gear shifter linkages, steering columns and screw conveyors. What is more, we are also supplying products to OEMs and automobile manufacturers for LCV, MCV and HCV Tippers and other heavy duty applications. Few of our prestigious clients include JCB India and JCB UK, Terex India and Terex UK, Escorts Construction, Action Construction, Mahindra Construction, Indo Farm Equipment, Preet Tractors, Bull Machines, Leeboy India and TIL. We are also the single source supplier for these firms for several decades. In fact, we took part in the previous edition of Excon and received humungous response, which prompted us to come back again”. The official said that MSL had been serving the infrastructure and construction Industry right from 1980s, when supplies

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commenced to the former Escorts JCB, which was followed by Escorts Construction, L&T and eventually to all the new entrants in the industry. SCANIA Commercial vehicles and engines manufacturer Scania India, along with Larsen & Toubro showcased

the latest Scania P 410. Besides displaying its vehicles, Scania was also a part of the Swedish pavilion organised by Business Sweden with five participation companies, Atlas Copco, Nordlock, SKF and SSAB. The focus in this pavilion was ‘Innovation and sustainable businesses’. Anders Grundstromer, Managing Director,

Scania Commercial Vehicle India and Senior Vice President, Scania Group along with the management team were present. Grundstromer said: “The Indian market has accepted the Scania brand extremely well. Therefore our presence at Excon underlines our commitment to providing not just a wide range of mining

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INDIA REPORT

and construction segment tipper and special application solutions but also a comprehensive service package that will support customers in India throughout”. He also said that the Ethanol bus would be launched in India soon. SCHWING STETTER In order to strengthen its expertise in concrete technology, Schwing Stetter launched five each of new products as well as new variants at the EXCON 2013. The newly launched products include concrete pumps and batching plants. The new concrete pumps included SP1300, SP3000 and TSM 20.8, while the new batching consisted of CP 45 and H1J. Anand Sundaresan, Vice Chairman and Managing Director, Schwing Stetter India and VG Sakthikumar, Whole Time Director – Operations, SCHWING Stetter

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India jointly unveiled the products at the event. After the launch, Sundaresan said: “We are delighted to have launched new products and be a part of Excon again. This is a prestigious event for us, and a great platform for us to showcase our latest products and our cutting-edge technology. The very key factor in launching new products is to make sure that they meet the Indian conditions, meet the customers’ expectations and help them to do their concerting job with ease”. “This is a moment of pride for us at Schwing Stetter India. Excon has always been the one-stop-shop for us to build and maintain relationships with potential as well as existing customers. Our newly launched products demonstrate high levels of quality and efficiency, as our

mantra is to deliver the best-inclass concrete solutions for the construction industry. We hope to showcase our expertise with more such remarkable products and continue to re-define the construction space by employing the best-in-class technology”, Shaktikumar added. SKF SKF launched its advanced products for India’s construction industry. The firm is focused on supporting Indian original equipment manufacturers in their domestic and global growth and to meet increasing demands for greater productivity, reliability and safety in construction machines. By taking, what SKF calls the SKF Lifecycle Management Approach, the firm utilises the knowledge of both its design teams and its field application specialists to

create next generation designs that reflect real world conditions and to recommend maintenance practices that maximise the equipment’s life and reliability. By looking at total cost of ownership, SKF is in a position to show both OEM as well as the end user customer how to maximise the value of the equipment and deliver the lowest possible lifecycle cost. For driven wheels, SKF has a range of standard and customised hub solutions that are pre-set in the factory and incorporate bearings and heavy-duty seals for harsh environments. In addition to that the company’s virtual testing capability shortens the time to market. Sealing solutions from SKF incorporate a wide range of sealing offerings such as Mudblock, Trackstar and Hydraulic

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INDIA REPORT

Cylinder Seals, just three of the seal types within its extensive range of sealing products. SKF also presented a wide range of lubrication solutions for the construction machinery industry, right from application-specific lubricating oils and greases to automatic lubrication systems. The highlight of SKF’s showcase included offerings and products for heavy machinery to support customers in India with products from domestic range. SWEDEN PAVILION The Swedish pavilion at Excon 2013, organised by Business Sweden and with representation from five Swedish firms, such as Atlas Copco, Nordlock, Scania,

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SKF and SSAB was inaugurated by the Ambassador of Sweden, Harald Sandber. Apparently, this initiative at the expo was a step towards greater and more longterm business relations between India, keeping focus on the main theme of the pavilion: ‘Innovation and Sustainability’. Trade between India and Sweden in terms of volume of goods was pegged at $ 2.5 billion in 2012. Manufactured goods, machinery in particular are rapidly gaining ground among Swedish imports from India. Indian service exports to Sweden are also burgeoning, most prominently in the arena of manufacturing and services. Recognising that successful public-private

partnerships at the country level are critical in enabling more sustainable and inclusive business practices, the event featured a number of innovative products by the participating Swedish firms. Anna Liberg, India Manager, Business Sweden said: “Swedish firms are now increasingly showing interest in India. We also encourage Sweden’s interest in India and facilitate knowledge sharing by participating in events such as the one today”. Sweden is the second most innovative nation in the world with a strong focus on sustainable development both in the public and private sectors. Given this background, Swedish firms have made an inclusive

business commitment to India. This initiative at EXCON 2013 demonstrated the importance of connecting with a multitude of stakeholders to support current and upcoming Swedish firms in India. TATA MOTORS Tata Motors on November 20, showcased six new high powered construction vehicles from its ConsTruck range of Commercial Vehicles at the EXCON 2013. Among these were three new offerings from its Prima LX range. Driven by powerful and fuelefficient engines, these trucks deliver an ideal combination of power and economy, catering to the construction and mining

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INDIA REPORT industry. The new displays from the Tata Motors ConsTruck range include Tata Prima 3138.K – a powerful vehicle ideal for heavy duty mining application, Tata LPK 3118 8X2 Haulage tipper – has been specially designed for long-haul surface transport applications and has a sleeper cabin for added comfort for the driver, Tata LPK 3723 10x4 – a 10 Cum RMC (Ready Mix Concrete) body – the only vehicle to qualify in the segment of 10 Cum Transit mixer application. From the Tata Prima LX range – Tata Motors showcased new tippers in the 25 tonne to 31 tonne segment, with engine capacities in the 230 hp to 280 hp power range.

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TRACTORS INDIA LTD Tractor India Limited unveiled new crane and crushing and screening solutions. The company launched PIXEF, a first of its kind and versatile hydraulic mobile crane in pick-n-carry segment. TIL also launched a 15 tonnes multi-tasking crane for Stew, Pick-n-Carry and Carry Deck applications. TIL is the market leader in India in higher capacity mobile crane and material handling segment. The new mobile crane model from the company has a microprocessor controlled safety system designed to keep all the operations safe and hassle free. The microprocessor is fitted with interlocks which prevent machine misuse and abuse. The crane offers a unique carry on deck

feature with 360 degree noncontinuous slew and excellent pick and move capacity, high all round visibility and also comes with a standard fitment of a rear view camera. The carry deck has a capacity of four tonnes. Somnath Bhattarcharjee, President, Material Handling Solutions and Equipment & Project Solutions Business, TIL said: “The launch of PIXEF pick-n-carry crane epitomising safety, productivity, superior technology and performance is a game changing initiative by TIL in the 15 tonne mobile crane segment”. VOLVO CONSTRUCTION EQUIPMENT Volvo Construction Equipment, the Indian arm of AB Volvo of Sweden displayed its range of

construction machine. Volvo is one of the world’s largest manufacturers of construction machines. The company is one of the top five construction equipment firms in India and has a manufacturing plant in Bangalore. The company makes 21T and 29T excavators at this facility, besides the production of soil compactor, asphalt compactor and asphalt paver. The Swedish giant has invested in excess of 90 crore back in 2010-11. The unit in Bangalore has optimum capacity to continue production until 2015. In the previous edition of the expo, Volvo had introduced the brand SDLG. The company also launched 48 tonne excavators named EC480D, with enhanced productivity and more fuel efficiency.

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Ruediger Schroeder Managing Director, Kärcher Cleaning Systems Pvt. Ltd. Report: Avishek Banerjee, Photography: Mohd. Nasir

It’s been two years since Kärcher India became the wholly-owned subsidiary of Alfred Kärcher GmbH & Co. KG post the absorption of Manmachine India Pvt. Limited. How have things progressed since then and how excited are you in heading Kärcher India? I think Manmachine did a great job in introducing the ‘Kärcher’ brand to India. Suppliers and dealers often have issues on how fast you want to grow and what kind of market penetration you are aiming for. So in 2011, Kärcher GmbH & Manmachine came to the conclusion that it would be the best way forward if Kärcher

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takes over the (Indian) operations. The management stayed on until September this year and hence there wasn’t any mistrust with Manmachine. We realised the full resources of Kärcher in Germany as well as its growth potential in India. Over the last two years (after becoming a fully-owned subsidiary), Kärcher has opened a number of branch offices in the country. For us, a nationwide sales and service network is essential. So apart from ramping up our distribution here, we have also increased our staff strength over the last two years. Answering the second part of your question, I have been working in India

before as the President and CEO of Roots Multiclean Ltd. When Kärcher GmbH approached me to head its Indian operations, I was quite excited because I knew that India is a fast growing market for cleaning machines. And Kärcher, which is the world leader in cleaning machines, has immense expectations from the Indian market. How important is the Indian automobile market for you? What kind of products are you selling in this space and who are your target customers? Within the automotive industry, we have two different sectors.

Kärcher Cleaning Systems Pvt. Ltd.

Alfred Kärcher GmbH & Co. KG, which established its subsidiary in India in September 2011, is the world’s leading manufacturer of cleaning technology, based in Winnenden, near Stuttgart, Germany. Kärcher India offers a large product range such as high pressure cleaners, sweepers, dry ice blasting machines, steam cleaners, wet and dry vacuum cleaners, car washers, cleaning agents, drinking water and waste-water treatment systems, water dispensers and pumps for home and garden scrubberdriers, garden pumps, in-plant equipment, vehicle washing systems, industrial high-pressure cleaning systems, water treatment, water recycling, etc. The main buyers of its machines are in the automotive sector, commercial cleaning, hotels and catering, farming, local authorities, trade and industry, and private households. Based in Noida, the company aims to step up expansion of its countrywide dealer and service network to increase customer proximity.

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TÊTE-À-TÊTE One of them is the cleaning machines sector wherein we are supplying to the OEMs at their manufacturing facilities. The other sector would be their (OEMs’) dealers who also need similar products for their service set-ups and showrooms. We have different verticals in the company and the automotive (vertical) is one of our main growth drivers. Within this vertical, we are selling 4-5 different products like high-pressure cleaners, vacuum cleaners, carpet or upholstery extraction units, and steam cleaners. For automobile manufacturers, we are selling a wide range of different products starting from hi-pressure cleaners, industrial vacuum cleaners, automatic scrubbers, mechanised sweepers and also car washing systems. Are all your products imported or are they assembled here? Do you have any plans to set up a manufacturing facility here in order to price your products competitively and then look for exports? At the moment, Kärcher India is a sales and service company. We are buying the products from our head office in Germany and distributing them for our customers. So far, most of the products sold here are imported from multiple overseas facilities depending on the product lines. We are running our plants in Germany, Romania, Italy, Brazil and China but the product quality remains the same everywhere. Our range is so wide that we actually don’t know where a specific product is made. We have a centralised warehouse from where the products are shipped into India. Even though we regard the Indian market as among the fastest ones, it is still small in terms of volumes. As soon as the market is reaching certain volumes, establishing a manufacturing base here will be one of the alternatives to enhance our operations. Right now, we have outsourced

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TÊTE-À-TÊTE the local production of single disk machines to a third-party manufacturer. You are also running overseas R&D centres to develop country-specific products. Do you have similar plans in India? It’s more or less the same answer to your previous question. If the market is developing further, the likeliness of this (establishing a technical centre) would also happen. I have been working in India before and am aware that Indian engineers are very talented and can be a part of our global R&D team. Let’s wait and see how times develop for Kärcher. As mechanised washing industry is evolving over the years, is it curtains down for the manual washers? I think with the rapid industrialisation of the Indian economy, manual labour is at a certain stage of development we place by mechanical solutions. But the challenge is that it’s not so much of a question of mechanised cleaning solutions taking away people from their jobs. In a lot of instance, mechanised cleaning solutions are much more productive than the manual ones. For example, if you really want to clean a car, you tend to do it by hand. There are so many corners which you can’t reach and remains dirty. So the pressure washers will step in and execute the job completely. In another instance, if you try to clean the carpet by hand, you will not succeed without using a vacuum. So if you want to clean something in an efficient and hygienic manner, you need to resort to mechanised solutions. And to answer your question specifically, the cleaning industry in itself is the biggest employer in the world. If you look at the Indian scenario, how many people are working as cleaners? If you start from just street cleaning to office cleaning to hospital cleaning to contract

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TÊTE-À-TÊTE cleaners, the number is huge. I think the standards for cleaning will go up in India. The total workforce will also go up even if enhanced mechanical solutions are applied. The human factor is still required to perform the task and these jobs will be of much higher standards in the future. This is because you need skilled people to perform those tasks. If you need world-class hygienic standards, you need educated people who are doing cleaning with a high-end machine. Could you also talk a little about the current strength of your distribution network? Will you now be setting up more sales and service outlets in tierII and tier-III cities? We are definitely expecting a strong expansion of our organisation in India. Our goal is to add new branch offices every year in the future. Currently, we are having nine sales and service outlets pan-India which are in the major metro cities. We also have four satellite offices in tier-II cities. Going forward, we will be establishing more such sales and service outlets in non-metro cities. Has the downturn in the automotive industry really impacted your business? And what are the other challenges that you are grappling with? Fortunately, the economic downturn has not really impacted our business. This is because the cleaning equipment industry is growing and maybe we are doing better than our competitors. Answering the second part of your question, the biggest challenge is getting the right manpower. We are relying hugely on skilled manpower for our products. Even though we are constantly adding new people, it is not so easy to find them. Could you tell us the growth projections for Kärcher India in terms of revenues, workforce

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and volumes? As we have very small machines, the number of units really doesn’t tell you too much. And since we are a privately-held company, we don’t talk about our revenues in India. What I can tell you is that we have about 180 people on our rolls and are planning to add another 40 this year. Although we are still below 100 crore in revenues, we have very high growth expectations in the coming years. We will definitely grow by over 20pc on an annual basis. By CY 2015, I am sure we will post a 100 croreturnover. Lastly, you have maintained that the cleaning industry in India is still in its infancy and has a long way to go. So what could really be done to promote better cleanliness and hygienic standards for this industry in India? As I said earlier, the cleaning industry, especially the contract cleaners, are growing very rapidly. The guess is that close to 35-40pc of the total cleaning operations is already outsourced in India. The biggest challenge is for every organisation, which is recruiting cleaners, that there is no special education for these workers (cleaners). There is a preconceived notion (in India)

that cleaning means a person using a broom or a mop. But that is not prevalent in today’s world anywhere. If you talk about hygiene at places like hospitals, hotels, etc, this (brooming and mopping) is definitely not enough. You need the necessary expertise and the machines to get the job done in a holistic manner. We, along with our competitors and contract cleaners, are trying to start educational institutes for grooming such cleaners. That’s a long way and the government

is just starting to realise that too. We, of course, prefer to talk about the hi-tech credentials of our products. But they (govt) often forget that there are a lot of things that need to be done as the economy is growing and the people here are getting cleanliness conscious. I think the biggest thing what we in this industry can achieve is creating some awareness about mechanised cleaning and the requirement for cleaners to do such a job in an efficient manner.

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Reiner A. Allgeier

Schenker India Private Limited

Managing Director, Schenker India Private Limited DB Schenker India offers a complete range of international air and ocean freight services as well as integrated logistics services and global supply chain solutions from a single source supported by its strong worldwide network comprising 2,000 locations. It is one of the leading providers of integrated logistics services in the country to automotive and other industries. With 37 offices and multiple warehouses covering more than 1.7 million of warehousing space, it has a foothold across the length and breadth of the country.

Report: Avishek Banerjee, Photography: Mohd. Nasir

size of our warehousing facility all over India stands at 170,000 square metres and by the end of the year we are targeting to enhance it further to 200,000 square metres. By 2015, we expect to have a total size of 300,000 square metres. We will also be ramping up our logistical centres from 37 right now. So you can see the kind of growth we are looking at in the next few years. How important is the Indian market for you? How big are you betting on that? India is definitely one of the most important markets for Schenker. We have actually a very huge focus on Asia Pacific markets and India is one of the growth

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drivers for us and we have an expectation that we will grow ahead of the market. On a yearly basis, we should post a growth of alteast 10-20pc. We are increasing our footprint in this country. Currently, we have 37 offices and another 3 will be added in

the near term. We are constantly increasing our warehousing network in the country. We are planning to set up a very big facility on the outskirts of Mumbai at Bhiwandi, Maharashtra wherein we will be running a 40,000 sq. m warehouse. Currently, the total

How big are the operations of the group and do your service products like Logistics, Air Freight, Ocean Freight, DB Schenker Customs, Complex Projects, DB Schenker Fairs and DB Schenker Sports Projects offered here in India too?

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TÊTE-À-TÊTE We are basically offering all the service products in India that Schenker is offering worldwide. So we have air freight services for both export and import, ocean freight services for export and import, contract logistics, etc. We do customs clearances as well. We have a division for fairs and exhibitions also for global projects where we handle big contracts such as an OEM looking to set up a greenfield facility somewhere. Since Schenker is a logistics company, do you own a fleet of vehicles and then integrate it with the public/pvt. transport system that is available in the region? No, we don’t own a fleet of vehicles. Yes, we are a logistics company but we are asset-light in our business. We work with subcontractors which are working for us under contract. So they have dedicated vehicles which are running for us. And we have no interaction at all with the public sector transportation. What is the size of the logistics industry in India and how much is your share in it? Honestly speaking, I don’t know about the size of the logistics industry. But what I know is that in the air and ocean freight industry, we have a marketshare of around 6-8pc. But that does not include contract logistics and distribution. How are your operations different from some of the existing players in India? As compared to the local players, we can offer a total supply chain of end-to-end solutions through our network. This is because we are a globally operating company running more than 2,000 offices worldwide. We operate in more than 130 countries. A customer here in India will get all his transportation needs like importexport from a single source. This is what differs us from local players. If you compare us to our

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global competitors, I would say we are the No. 2 player in the logistics space. This of course gives us an edge over many of our competitors. As a logistics player, you serve diverse industries,automobiles being one. Is this your biggest client and what are the services being offered here? Also, what are the modern ways you adopt to enhance efficiency? The automotive vertical is very important for us. We are into import and export of automotive components and parts through our ocean and air freight services. We do the customs clearance in a reliable and expeditious manner and deliver it to their production facilities. For some of our customers, we do logistics and movements within their plants. We are also into

exporting and importing of fully built vehicles for some of the manufacturers. However, it is not the vertical where we have most of our customers. The electronics industry gives us the maximum revenues. For enhancing the OEMs’ efficiency, we give the security to the local automotive manufacturers that they get their parts in time. What is your view on India’s current infrastructure? Is it a major impediment to your logistics business? The infrastructure here in India is definitely not on par with developed countries like Europe or United States. The country’s infrastructure needs a further enhancement. However, what I can see a lot was done in the last two-three years specifically for airports, seaports. There

are still some additional developments necessary and the major opportunity for improvement is with the road and rail infrastructure of this country. As more of our automotive customers want their readymade cars to be moved by rail, more such (infrastructure) facilities are required. Lastly, where do you see your company in the coming years in the logistics space? At the moment, we are among the top 5 logistics providers in India and it is clearly our aim to become the number one logistics provider within the next three years. To further our objectives, we will enhance our total supply chain solutions offering to our customers. In the coming years, we will increase our revenues by 10-15pc on a yearly basis.

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GLOBAL REPORT

End of the V8 era in F1 and a proud moment for RENAULT SPORT F1 team Sebastian Vettel won the last two Formula One races at Brazil and USA, making it the ninth consecutive win this season. His team Infiniti Red Bull RacingRenault became the last winner of a race using an F1 V8 engine in the Brazilian Grand Prix. Mark Webber finished second in his final F1 race, giving a 1-2 finish for the RS27. It was a grand farewell of kinds to the successful F1 V8 engine developed by the Renault Sport

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F1 (RSF1) team. Renault Sport F1 is the sporting division created by Renault to represent its interests in the FIA Formula One World Championship and is tasked with designing and building optimised engines that can be fully integrated into a chassis package created by RSF1’s carefully selected partner teams. The current power plant, the RS27, is a 750bhp V8 engine, in use since 2007. Identical units

were supplied to four partner teams; triple world champions Red Bull Racing; Lotus F1 Team, double world champions in 2005 and 2006 when racing as the Renault F1 Team; Caterham F1 Team and Williams F1 Team. In 2012, this quartet scored nine wins and a total of 839 points, with Red Bull Racing securing the double of the Drivers’ and Constructors’ Championship. The main thrust of RSF1’s work takes place at Viry-Châtillon,

France, which has traditionally been the technical hub of Renault’s F1 activities. Present in the sport since 1977, Renault has won 11 Constructors’ World Titles and ten Drivers’ World Titles in the championship, plus more than 200 pole positions and 150 wins. The RS27 engine powered four Renault won the first V8-powered race in 2006 (Bahrain GP) and now comes full circle to win the final event. It was a hat-trick for end-of-era

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GLOBAL REPORT

Picture for representation purpose only

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GLOBAL REPORT

Viry-Châtillon’s 10,000m² is responsible for designing, testing and operating highly optimised engines for competition in the FIA Formula One World Championship. Photo: DPPI

successes for Renault, with wins at the last race of the 3.0l V10 engine era (2005) and 3.5l V10 era (1994) Renault is the most successful engine manufacturer under the current engine regulations, with 60 wins, 66 pole positions and 56 fastest laps, plus 5 Constructors’ and Drivers’ championships In more than 30 years of competition in the FIA Formula One World Championship, Renault has won 12 titles (30pc of the available titles), 2 under its own banner (2005 and 2006) and additionally as an engine supplier (1992-1997 and 2010-2013). Renault also holds the record for

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the most engine manufacturer poles in the sport (213) According to a Renault communication, the company now bids to win back-to-back titles in the next engine era, which sees the Renault Energy F1 V6 turbocharged Power Units introduced next season Rob White, deputy managing director (technical) looks back on the V8s: “Getting to the end of an engine formula is a time for reflection and I am proud of what we’ve achieved. The birth of the V8 was an opportunity, but also an enormous challenge. We were fighting for the 2005 championship with the last

V10 and ultimately succeeding brought a weight of expectation to bear. The team at Viry did a great job to manage the development of two engines in parallel and to win with both. “Among the wins that stand out for me is the first race of the V8 era, the Bahrain Grand Prix in 2006, won by Alonso. It was a fantastic relief to know that our hard work and difficult choices had been on the right track. We had been up against it for the development of the V8, and we took some decisions that surprised our competitors and onlookers at the time – for example we were very late to

test on track; everyone else was running an interim car on circuits while we were back at base dyno testing! “Securing the title at the last race in 2006 was a very special feeling. To show how intense it was, I do not actually remember the race in Brazil – I remember more the reaction at the factory and the celebrations with all the Renault team. Winning as both a team owner and an engine supplier is also a major achievement, also to adapt to the very different requirements of both environments. In Abu Dhabi 2010 we pulled it off with Red Bull Racing when Vettel won his

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GLOBAL REPORT HERE ARE JUST SOME OF THE RENAULT STATISTICS FROM THE V8 ERA : • • • • • • • •

Renault Sport F1 team after the final race victory in Brazil.

• first Drivers’ championship. We had had some problems during the season, but remained focused and determined to support our partner to the end. The race was very tense and Sebastian’s victory in the race and well-earned championship were a great relief. Winning in Brazil seems a fitting

end to the era – we’ve won a lot of races and learned a great deal. The challenge facing the Viry team for 2014 cannot be underestimated. Success in the past is no guarantee of success in the future, but if we keep the same spirit and work ethic that have yielded results with the V8,

it bodes well for next year and beyond.’ With the curtain now down on the normally-aspirated V8 engines, the scene is set for the downsized, turbocharged V6 Power Units equipped with potent electrical recovery systems in 2014.

• • •

• •

• • • • • • • • •

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59 wins 65 pole positions 55 fastest laps 3665.5 points 5 Constructors’ world titles 5 Drivers’ world titles 40pc of wins in the V8 era 1 in every 2 pole positions 6 different drivers have won races with the Renault V8 4 different teams have won races with the Renault V8 2.4 L V8 (2006 to 2013) 8 years of competition 750 bhp maximum power (2013 version, typical car installation, typical temp/ pressure/humidity) 18,000 rpm maximum engine speed (2013 version) 95kg weight, FIA perimeter 1271 engines built, 683 for track use, 588 for dyno use >2 000000 km total >5 000 components per engine > 7600000 parts used 21,800 pistons 43,200 inlet valves 45,900 exhaust valves 43,800 connectingrod bolts 22,000 spark plugs 10,600 oil filters

December 2013 / 57


TECHNOLOGY

Share of electronics in automobiles will rise to $26 billion by 2020 TE Connectivity, a world leader in connectivity, recently commissioned a study on “Electronics Manufacturing in India, in Pursuit of Greater Localisation.�Findings of the study reveal that the Indian automobile industry has experienced significant growth in the last decade. The automobile industry was valued at US$92.12 billion in FY 2011-12, and is estimated to grow to around US$130 billion by FY 2020-21. Proportionally, the share of electronics in automobiles is estimated to rise from the present US$9 billion to US$26 billion by 2020. The report, apart from other findings, analyses the automotive electronics industry in India and offers insights regarding the electronic components used in automobiles. It is broadly estimated that the average share of electronics in an Indian car today is in the range of US$1000 to US$1500 per car. Electronic components used in the automotive industry are estimated at 10 percent of the total bill of materials, and this is expected to increase by about 10percent over the next ten years. The report also emphasises the challenges faced by the automobile industry and states that the dynamics of crude oil prices and domestic policies have adversely affected the demand of automobiles in the last two years. Reduced exports and domestic demand since 2008 have also been a challenge for large-scale producers in India and therefore, there is a widening supply-demand gap in automotive electronics. TE Connectivity is a $13 billion world leader in connectivity. The company designs and manufactures products at the heart of electronic connections for the world’s leading industries including automotive, energy and industrial, broadband communications, consumer devices, healthcare, and aerospace and defence.

58 / December 2013

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TECHNOLOGY

Continental has been setting standards in the development of vehicle keys for over 20 years Twenty years ago, Siemens Automotive, a predecessor of the automotive business of the international automotive supplier Continental, commenced volume production of the first remote access key for passenger cars. Today, Continental remains one of the leading developers in the market for technologies for remote-controlled vehicle access systems. “We have set quite a number of standards in the last two decades of vehicle key development,” summarises Andreas Wolf, head of the Continental Interior division’s Body & Security business unit, the past developments. “For instance, Continental has accelerated the personalisation of vehicle keys. Today, drivers can store personal preferences such as the position of the seat or steering wheel or their favourite radio station, which are set automatically during the unlocking process,” says Wolf. At

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an organizational level, Continental is present with development and application capacities in all important world markets thanks to its global positioning. With around 20 million electronic car keys produced each year, the company has a great deal of experience in this segment. Setting trends in design and function Continental is setting the latest trends thanks to the company’s technology leadership. One of the most striking trends will be the further optical and haptic “refinement” of remote access keys. In addition to plastic, examples include surfaces made of stainless steel, brushed aluminum, glass, leather, and ceramics. The miniaturisation of the components is a further aim.

A current showpiece is a key card with a thickness of only 3.4 mm, which Continental developed in 2012 for the luxury class sedan of the Korean automotive manufacturer Kia. In this remotecontrol card that can easily fit in the wallet, the electronics – including the passive access control system (Passive Start and Entry, PASE) – are cast in plastic for a tight fit and high resistance to breakage. In other markets, however, conspicuous keys of a certain size and with an eye-catching appearance are more in demand. The range of functions is set to increase in the opinion of the key experts in Regensburg. For example, a function to open the car automatically will also be available as standard in the near future: By closely monitoring the position of the key in the vehicle’s environment, the

system can activate personalised vehicle functions from a distance of up to six meters– such as the seat setting, exterior lights, or opening the trunk lid when the driver approaches the rear of the vehicle. Vehicle Keys will soon support also Near Field Communication (NFC). This interface, which Continental has already developed for volume production, allows data to be transmitted from the vehicle or smartphone/ tablet to the remote access key. This opens the door to lots of new applications, such as easily transmitting a route calculated on a PC to the car’s navigation device, reading out data saved in the remote access key to a smartphone/tablet via NFC, or using the smartphone as an additional “vehicle key.” For this, the digital key is stored in the cell phone.

December 2013 / 59


INDUSTRY OVERVIEW PASSENGER VEHICLE MANUFACTURERS IN INDIA (Total Domestic Sales + Exports - October 2013) 2,05,735 Units

COMPANY

%

Maruti Suzuki

42.76

Hyundai Motor

24.39

Honda Cars

5.59

Tata Motors

5.54

Nissan Motor

5.32

Ford India

4.03

Toyota Kirloskar Motor

3.81

Volkswagen India

3.66

OTHERS

2.50

Skoda Auto India (1.04%) Fiat India Automobiles (0.59%) Mahindra & Mahindra (0.43%) Renault India (0.36%) Hindustan Motors (0.08%) General Motors India

2.40

UTILITY VEHICLE MANUFACTURERS IN INDIA (Total Domestic Sales + Exports - October 2013) 79,521 Units

COMPANY

%

Mahindra & Mahindra

31.97

Maruti Suzuki

21.52

Tata Motors

12.10

Toyota Kirloskar Motor

9.74

Ford India

8.36

Renault India

7.07

Nissan Motor

4.16

General Motors

3.49

OTHERS

1.59

Force Motors (0.68%) Ashok Leyland (0.50%) Hindustan Motors (0.19%) Honda Cars India (0.11%) Skoda Auto India (0.07%) Hyundai Motor India (0.04%)

Based on SIAM figures

60 / December 2013

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INDUSTRY OVERVIEW TWO WHEELER MANUFACTURERS IN INDIA (Total Domestic Sales + Exports - October 2013) 16,93,861 Units

COMPANY

%

Hero MotoCorp

36.92

Honda Motorcycle & Scooter India

22.19

Bajaj Auto

20.56

TVS Motor Company

11.22

India Yamaha Motor

3.81

OTHERS

2.96

Mahindra Two Wheelers (1.75%) Royal Enfield (1.04%) Piaggio Vehicles (0.16%) H-D Motor Company India (0.01%) Suzuki Motorcycle India

2.34

THREE WHEELERS IN INDIA (Total Domestic Sales + Exports - October 2013) 76,874 Units

COMPANY

%

Bajaj Auto

48.13

Piaggio Vehicles

25.07

TVS Motor Company

10.22

Mahindra & Mahindra

9.32

Atul Auto

5.27

Scooters India

1.83

Force Motors

0.16

Based on SIAM figures

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December 2013 / 61


INDUSTRY OVERVIEW LIGHT COMMERCIAL VEHICLE MANUFACTURERS IN INDIA (Total Domestic Sales + Exports - October 2013) 44,273 Units

COMPANY

%

Tata Motors Ltd.

48.98

Mahindra & Mahindra Ltd.

37.44

Ashok Leyland Ltd.

5.22

Force Motors Ltd.

3.65

VECVs - Eicher

1.70

Piaggio Vehicles Pvt. Ltd.

1.57

Mahindra Trucks & Buses Ltd.

0.80

SML Isuzu Ltd.

0.58

Hindustan Motors Ltd.

0.06

MEDIUM & HEAVY COMMERCIAL VEHICLE MANUFACTURERS IN INDIA (Total Domestic Sales + Exports - October 2013) 16,173 Units

COMPANY

%

Tata Motors Ltd.

55.24

Ashok Leyland Ltd.

25.31

VECVs - Eicher

13.89

Asia Motor Works Ltd.

2.13

SML Isuzu Ltd.

2.12

Mahindra Trucks & Buses Ltd.

0.93

VECVs - Volvo

0.35

Mahindra & Mahindra Ltd.

0.03

Based on SIAM figures

62 / December 2013

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RNI No DEL ENG/2010/34562

Motown India December 2013  

For the December 2013 issue, we have an automotive component maker. Nipman Fasteners makes products like engine studs, flange screws and bol...

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