General Motors' 2002
purchase of bankrupt Daewoo is looking smart
as the Korean unit spearheads a drive to roll
out smaller cars
With oil prices in the stratosphere,
Detroit's Big Three automakers are paying
the price (BusinessWeek.com, 6/16/08) for
concentrating so heavily on gas-guzzling trucks,
SUVs, and luxury vehicles in the U.S. But
General Motors (GM) executive Michael A. Grimaldi
likes to point to one move that has turned
out very well: The U.S. giant's takeover of
major assets from bankrupt Daewoo Motor in
2002. The Korean operation is a crucial part
of a global strategy that has enabled GM to
tap local design and engineering talent specializing
in smaller cars in Asia and Europe, giving
GM a significant boost in small cars. Says
Grimaldi, president and chief executive of
GM Daewoo Auto & Technology, "It
was a smart strategic decision."
For GM, the Korean subsidiary
is growing in importance as North American
consumers turn away from trucks and move back
to smaller vehicles. The Korean team will
spearhead GM's drive to roll out more fuel-efficient
vehicles this fall. GM Daewoo is not only
the hub for designing and developing mini
and subcompact cars, but also the first manufacturer
among all the company's brands to build the
next-generation GM compact, a car based on
a European-developed platform to be shared
by the GM family.
A New Mini for Next
Year
The new compact (BusinessWeek.com,
6/3/08) will replace the Chevrolet Lacetti
and be shipped around the world. A U.S. variant
will be built at GM's Lordstown (Ohio) plant
beginning in mid-2010. The new Lacetti will
be unveiled at the Paris Auto Show in October
and be followed by the launch of two smaller
high-mileage cars—both designed and
developed in Korea.
Also making a debut next year
will be a new mini based on the Beat, one
of three concept cars GM unveiled at the New
York Auto Show last year. GM Daewoo is developing
a subcompact platform to replace the Chevrolet
Aveo and the Corsa of Adam Opel, GM's European
unit. The new Aveo and its variants, coming
in 2010 to the U.S., Asia, and other parts
of the world, are expected to lead their segment
in fuel savings.
The compact marks a new beginning
for GM, which celebrates its 100th anniversary
in September. It will also be the first product
that truly represents the company's new global
vehicle development process. GM brands will
share a platform developed by a designated
hub for a certain segment, although there
will be several variants catering to local
tastes and needs. Under the scheme, Korea
will be in charge of developing mini and small-car
platforms; Europe the midsize and compact
cars; Brazil the small trucks; and the U.S.—trucks,
crossovers, and luxury vehicles.
Big Investment in
Korean Unit
Few other countries offer
better infrastructure for small cars than
Korea. Balanced between standard-setting carmakers
from high-cost Japan and low-cost Chinese
makers with a reputation for subpar quality,
GM Daewoo provides a sweet spot for GM, boast
executives. "When you look at the growth
that has occurred in China, other parts of
Asia, Latin America, Central and Eastern Europe,
and the type of products those markets were
going to require, GM Daewoo was in the right
spot," reckons Grimaldi.
The "just-right"
formula for price and quality is proving a
prosperous breeding ground for auto components.
Korea is home to all but three of top 30 global
part suppliers, and, in 2007, 17 local companies
were selected from among GM's best part suppliers.
That year GM Group purchased some $10 billion
worth of parts from Korean suppliers, up from
$2.6 billion in 2003.
Bo Andersson, GM Group vice-president
in charge of global purchasing and supply
chain, expressed satisfaction at the quality
of Korean parts during his recent trip to
Seoul and said his team would keep increasing
purchases from Korea.
To build up the Korean unit's
capabilities, GM has made serious investments.
The company has spent more than $3 billion
in the past three years to set up or increase
GM Daewoo's engine plants, state-of-the-art
transmission plants, and a comprehensive proving
ground housing six laboratories, including
wind tunnels and severe-temperature test facilities.
In the past five years, the company has more
than doubled the number of designers, from
70 to 150, and boosted the number of engineers
from 1,500 to 2,900. GM Daewoo will spend
another $3 billion over the next two years
to develop and build new small cars.
Daewoo Bolsters China
Presence
Already, the Korean unit has
helped GM broaden its global reach. While
its U.S. sales plunged 6.1%, to 4.51 million
last year, GM's global sales rose about 3%,
to 9.37 million vehicles, making it neck-and-neck
with Toyota (TM). Of those, as much as 20%,
or 1.89 million, came from GM Daewoo in one
way or another and were sold in 150 countries.
"Without the Korean unit, GM would have
certainly looked much weaker," says Lee
Hang Koo, auto sector researcher at government-funded
think tank Korea Institute for Industrial
Economics & Trade. "GM Daewoo makes
the biggest difference between GM and Ford
(F)."
The Detroit company has taken
advantage of Korea's small-car strength to
globalize its Chevrolet brand. Until three
years ago, Chevy was best known for big trucks
like the brawny Silverado pickup and gas-guzzling
Suburban SUV in North America. But in the
past couple of years, it has managed to eke
out a presence in Europe, China, Russia, and
other emerging markets with smaller vehicles,
many provided by GM Daewoo. Last year, the
Korean unit accounted for 53% of 1.84 million
vehicles sold outside North America under
the Chevy brand. It also shipped some two
thirds of GM cars sold in China, in the form
of component kits, in the past couple of years.
A big question is whether
GM Daewoo can stay competitive against the
fast-growing auto industry in China and other
low-cost economies. Company executives say
they now have a core designing and engineering
expertise in Korea, where engineering is some
40% cheaper than in the U.S. A bigger and
more immediate challenge comes from manufacturing.
"GM Daewoo's most dangerous competitor
is GM's Shanghai operation," says Kim
Ki Chan, a business school professor specializing
in the auto industry at the Catholic University
of Korea. "If GM Shanghai's quality and
productivity catch up with GM Daewoo's, then
manufacturing jobs in Korea will be under
threat."
Third Consecutive
Year of Net Profits
Another challenge for GM in
Korea is to increase its market share in the
tough domestic market. The company is still
No. 3 in Korea where Hyundai Motor and its
affiliate Kia Motors dominate with a combined
three quarters market share. Grimaldi set
a goal of increasing his company's share to
between 15% and 20% in 2012, from just more
than 10% now, by completely replacing a current
lineup of vehicles, some of which are still
associated with bankrupt Daewoo.
So far, GM Daewoo has
been a huge success story despite its lackluster
presence in Korea. Thanks to GM's global strategy
and growing consumer appetite for small cars,
exports account for more than 90% of the Korean
unit's sales. Although its primary role was
to supply vehicles to other GM brands at razor-thin
margins, GM Daewoo managed to post a third
consecutive year of net profit in 2007, amounting
to $532 million, down 8% from 2006, on sales
of $12.3 billion, up 30%. "We have made
a significant contribution supporting GM,"
says Grimaldi, "now we have to…strengthen
our capabilities and competitiveness."
Reva i launched at
Rs 2.99 lakh, Delhi govt offers rebate to
buyer
In an attempt to reduce the
adverse effects of global warming and spiralling
oil prices, state Chief Minister Sheila Dikshit
today unveiled a pollution-free electric car
-- Reva i, priced at Rs 2.99 lakh. Powered
by a battery, Reva Electric Car Company (RECC)'s
Reva i has neither clutch nor gear and brings
down ruuning cost to only 40 paise per kilometre
with a top speed of 80 km per hour.
The Delhi government, as part
of its initiative to conserve environment,
will offer incentives like 15 per cent subsidy
on the base price of the vehicle, a 12.5 per
cent exemption of VAT and refund of road tax
and registration charges.These subsidies will
be paid from the State's 'Environment Fund',
through a cess of 25 paise per litre of diesel
known as the Environment Air Ambient quality
cess. 'The Government of Delhi has been committed
to taking steps to improve the environment
in the city. Our initiatives to support battery
operated vehicles is in line with our aim
to improve the environment as well as to encourage
a transport system that is effective, clean
and benefits the society,'' Ms Dikshit told
reporters here.
The company, which has already
sold 2,500 vehicles and available in 13 countries,
expects sales to pick up after the recent
fuel price hike. Auto companies have been
looking at alternate fuels as sales have slumped
due to rising input costs, which have pushed
them into pass on the burden to the consumer.
RECC will open its first showroom in South
Delhi later this month. The company will offer
doorstep aftersales service to its customers
by using a unique computer system and on board
diagnostics, which will ensure that service
is quick and maintenance is kept to the minimum.
''The improved motor in the Reva i comes with
a 40 per cent increase in mid-range torque,
resulting in better acceleration and climbing
and also has a 'Boost' mode for short-term
acceleration/power. The maintenance-free brushless
motor provides a smoother, quieter operation
and will deliver greater efficiency,'' RECC
Deputy Chairman and CTO Chetan Maini told
reporters here. In addition, the unique 'hill
restraint' feature allows enhanced negotiation
on slopes making it more convenient for its
driver, he added. RECC has its manufacturing
facility at the Bommasandra Industrial Area
in Bangalore in Bangalore with an installed
capacity of 6,000 units and over 300 employees.
Source: http://www.deepikaglobal.com/ENG_full.asp?catcode=ENG5&mcode=Business#21790
Mei Ta, Taiwan to
set up auto component manufacturing base at
Naidupet
Mei Ta to invest Rs Rs 600 crore at
APIIC – Multiproduct SEZ, Pellakuru
(M), Naidupet
A Memorandum of Understanding
(MoU) has been signed by Mr Chen Yu San, Chairman
of Mei Ta group and Mr B Sam Bob, Principal
Secretary, Industries, Government of Andhra
Pradesh, on Friday, for setting up an auto
component manufacturing base in Naidupet Industrial
park. The MoU was signed in the presence of
Chief Minister Dr Y S Rajasekhara Reddy, minister
for major industries Dr J Geeta Reddy. B P
Acharya, chairman & managing director,
APIIC, Commissioner, Industries, N.K.Prasad
and other officials were also present.
Mei Ta Industrial Company,
Taiwan will invest Rs 600 crore in a phased
manner. The Mei Ta project will come up on
230 acres of land at APIIC – Multiproduct
SEZ, Pellakuru (M), Naidupet, Nellore District.
Of the 230 acres, 210 acres is SEZ land and
20 acres in the DTA (Domestic Tariff Area).
In order to save time Mei Ta will adopt the
structure and design of its parent company
in China. The first phase of operations is
expected to commence next year – 2009.
This project is expected to provide direct
employment to 5000 and indirect employment
to 15,000 people. The company plans to recruit
engineers through campus placement and provide
them training in China. After their employment
at the Naidupet plant, they would be able
to train the subsequent batches. Mei Ta's
proposed lines of activity include: Auto components,
Foundry, Engineering Industry, Machining and
Material. Mei Ta is reported to be currently
working on creating a vendor base for the
components. Though, initially, Mei Ta proposed
to set up shop in the state of Maharashtra,
the company opted for Andhra Pradesh attracted
by the facilities it offered.
Source: http://machinist.in/index.php?option=com_content&task=view&id=1400&Itemid=2
Ashok Leyland announces
the formation of Albonair GmbH in Dortmund
To focus on advanced emission control systems
Ashok Leyland, the Hinduja
Group flagship, announced the formation of
a new company – ALBONAIR GmbH in Dortmund,
Germany – which will focus on the development,
production and sales of exhaust after-treatment
systems for environment-friendly diesel engines.
Albonair will engage in R&D and product
development initially in the area of SCR after-treatment
systems with an emphasis on design innovation
and enhanced customer value.
“We already had a group of scientists
and technologists who were assisting us in
our R&D efforts to develop vehicle emission
treatment systems and products. Therefore,
it made eminent sense to start a company with
them and formalize the working arrangement,”
said Mr. R. Seshasayee, Managing Director.
While the Dortmund,
Germany headquarters will be the central hub
for research and development, it will cater
to the requirements of emerging markets to
conduct local customer application development
for vehicle and engine manufacturers. Decision
on production locations is expected in the
coming months. Dr Georg Huethwohl who has
been a pioneer in this technology and Dr Rene
Ruedinger, have been appointed as Managing
Directors of the Company.
The compelling rationale for formation of
the Company is that regulations for diesel
exhaust emissions are getting stricter, worldwide.
The Euro 4 norms, currently in vogue in Europe,
are expected to be introduced in India and
China, soon. The Asian region offers enormous
market opportunities for innovative exhaust
after-treatment systems. While the demand
will increase significantly in the next few
years, these markets will look for cost-effective
products, requiring innovative solutions.
Over the longer term, these cost effective
systems are also expected to find application
in Europe and the USA. Eventually, Albonair
expects to branch out into a broader range
of technologies, all aimed at reduced vehicle
emissions in conformance to evolving standards
of regulations worldwide.
Source: http://machinist.in/index.php?option=com_content&task=view&id=1392&Itemid=2
Chrysler in talks
with TN government to set up facility in Tamil
Nadu
American car maker Chrysler
has agreed to send a team to Tamil Nadu to
explore the possibility of setting up a greenfield
facility there. Although Chrysler’s
talks with the TN government are in the early
stages as yet, the car maker has evinced a
strong interest to enter the Indian car market.
With the Tamil Nadu government hoping to woo
industrial projects worth Rs 30,000 crore
this financial year, top officials from various
departments had toured the US earlier this
year.
Members of the touring team
had met Chrysler executives to discuss the
advantages of setting up a plant in Tamil
Nadu. Sources say that the likelihood of the
Chrysler seeting shop in India is high since
it has separated from Daimler.
Chrysler LLC has been producing
automobiles since 1925. From 1998 to 2007,
Chrysler and its subsidiaries were part of
the German based Daimler group and the company
was named Daimler Chrysler Motors Company
LLC. In 2007, Daimler Chrysler AG sold 80%
of Chrysler group to American private equity
firm Cereberus Capital Management. Chrysler
is now the world’s largest private automaker.
Most of the large automobile
investments in India are being made in Maharashtra
and Tamil Nadu with plants coming up around
Chennai and along the Mumbai-Pune corridor.
In Maharashtra, Tata Motors, Mahindra&
Mahindra and Fiat have expanded their existing
capacities and Volkswagen and General Motors
have set up plants there. Tamil Nadu, on the
other hand, has Nissan, Renault, Ashok Leyland
and the JV between Hero group and Daimler
AG to manufacture light commercial vehicles
may be set up there.
Source: http://machinist.in/index.php?option=com_content&task=view&id=1390&Itemid=2
Autodesk Completes
Acquisition of Moldflow Corporation
Enhances Autodesk
Digital Prototyping Solution for Plastic Parts
Market
Autodesk, Inc has completed
its acquisition of Moldflow Corporation. Moldflow
is a leading provider of software solutions
that allow designers to predict and optimize
how plastic components will perform during
each phase of the design and manufacture process.
Autodesk announced its intent
to acquire Moldflow on May 1, 2008. "Autodesk
sees plastics and composites as some of the
fastest-growing engineering materials,"
said Carl Bass, Autodesk president and CEO.
"Given its relatively low weight and
durability, plastic materials are ideally
suited to help our customers attain their
sustainability initiatives. Moldflow, with
its industry-leading plastics simulation,
is a natural extension of Autodesk's Digital
Prototyping solution." Autodesk acquired
Moldflow for $22 per share, or approximately
$297 million, less the amount in Moldflow's
cash balance and proceeds from options exercises.
Source: http://machinist.in/index.php?option=com_content&task=view&id=1411&Itemid=2
Rane Brake Lining
Limited invests in new facility for Brake
Disc Brake Pads
Leading Brake Friction
Product manufacturer increases total Capacity
by 160% in Disc Brake Pads
Rane Brake Lining, India’s
leading Brake Friction manufacturer and flagship
company of Rane Group, reached a major milestone
in its 44 years history in the country with
the inauguration of its state-of-the-art and
environment friendly factory on June 13, 2008.
Present during the inauguration ceremony at
RBL’s Trichy plant were Mr.L.Lakshman,
Executive Chairman, Rane Holdings Ltd., Mr.L
Ganesh, Chairman, Rane Group and Mr.S Maitra,
Executive Director & Managing Executive
Officer(Supply Chain), Maruti Suzuki India
Ltd. along with Rane Brake Lining employees
and other guests.
Total spread of the
factory 16 acres with a built up area of 5712
sq.mts. with an investment outlay of Rs.60
Crores
Mr.
PS Rao, President, RBL, cited two major reasons
for the expansion: “The first is to
invest in latest manufacturing technology
in close co-operation with our collaborator
M/s. Nisshinbo Industries Inc., Japan in order
to provide high quality products meeting emerging
customer requirements. The second is to increase
capacity ahead of market requirements in order
to meet our customers’ growing demand”
he said. “This facility will remain
testimony to our relentless drive to improve
all aspects of our operations and to maintain
our status as one of the best suppliers in
the industry,” he stressed.
Plans to produce 10
million units per annum in various phases
out of the new facility
“The new facility is
born out of extensive interaction and participation
by Nisshinbo executives. 
Some
of the critical equipments have been imported
from Japan to match manufacturing processes
between RBL & Nisshinbo” said Mr.Bheemsingh
Melchisedec, Plant Head of the RBL, Trichy
Plant. “We also improved the overall
layout of the various functional areas of
the factory to ensure a more efficient flow
of materials, from receiving and storage to
assembly, packaging and finally shipment.
The facility emphasizes on poka yoke (mistake
proofing) in all manufacturing processes to
ensure defect free products to our customer
” he added.
RBL produces world-class brake
friction products for Automotive, Industrial
& Railway applications. RBL also makes
clutch friction products including clutch
facings and sintered ceramic clutch buttons.
The products are sold in export and domestic
markets. It is a group company of the Rane
Group. RBL is a leading supplier of friction
material products to the major vehicle OEMs
through their Tier 1 customers, namely brake
assembly manufacturers & clutch assembly
manufacturers in domestic markets. RBL has
a strong distribution network for sales &
distribution of replacement parts for automobiles.
The company has major exports into SAARC,
Europe, Australia & Middle East. RBL generates
around 1800 million in annual revenue, with
8% coming from exports.
100% asbestos free
disc pad facility
“Manufacturing Excellence
and Benchmarking of Quality will continue
to contribute strongly to our business growth
as a group,” said Mr. L Ganesh, Chairman,
Rane Group. “By expanding our capacities
and capabilities, our constant endeavor is
to continually improve the supply chain and
better serve customers locally as well as
globally. The new RBL plant in Trichy is a
State-of-the-art facility. This will be the
most modern asbestos-free disc pad plant in
India.
About RBL
Established in 1964, RBL has three manufacturing
facilities currently, in Chennai, Hyderabad
& Pondicherry. RBL makes brake & clutch
friction products including brake lining,
disc brake pads, clutch facings, railway brake
blocks etc., which are highly safety critical
items for automobiles and Indian Railways.
The company has major sales from OEM and Replacement
market segments. RBL is a significant supplier
of Railway brake blocks to Indian Railways
apart from exports to other international
railways. RBL exports brake linings &
disc brake pads to their international customers
in SAARC, Middle East, and Europe & Australia.
RBL won the Deming Application Price in year
2003 and has a reputation as suppliers of
high technology/quality products with their
customers.
About Nisshinbo Ind.,
JapanNisshinbo Industries Inc was
established in 1907 and is headquartered at
Tokyo, Japan. The company has varied business
interests, which includes Textiles, Automotive
Brakes & Friction Materials, Chemical
Products, Paper & Machine Tools etc.,
and The Company’s revenues are at US$
2687 Million (consolidated) as of 31st March
2007 with total employee strength of 12,744.
Nisshinbo has 16 offices & plants in Japan.
The company has 59 subsidiaries and 40 affiliates
in both Japan & Overseas. The brakes division
of the company, which includes automotive
brakes and friction material products, generates
revenue of US$537 and contributes to 20% of
the overall sales of the company.
About Rane GroupEstablished
in 1929, the Rane Group comprises seven companies
manufacturing safety and critical components
for a broad range of automotive industry segments.
In the fiscal year 2007-08 the group recorded
revenues of Rs.14,021 million. The Rane Group
embraces TQM as a way of life and four of
its companies have received the coveted Deming
Pri
Source: http://machinist.in/index.php?option=com_content&task=view&id=1380&Itemid=2
Caparo to set up Auto
and Aerospace Component Manufacturing Park
in Nellore
Caparo group of UK, founded by Lord Swraj
Paul, signed a Memorandum of Understanding
with the Andhra Pradesh Government on Saturday,
to set up an Aerospace and Automotive Components
Manufacturing Park in Nellore District of
Andhra Pradesh, India. The MOU for this Rs
3500 Crore facility was signed in the presence
of Chief Minister Mr. Y.S. Rajasekhar Reddy
by the state Industries secretary Mr.S am
Bob and Managing Director of Caparo Engineering
India Pvt.Ltd, Mr. Sunil Pahilajani. The government
agreed to allot 2,000 acres to the company
at the rate of Rs. 1 lakh an acre.
Sunil Pahilajani said that
around 50,000 tonne of stamping work and 30,000
tonne of forging work will be done in the
first phase of production which will start
15 months from now. Work on the facility is
expected to commence in March this year. Under
the state industrial policy, the company will
get many fiscal incentives. Pahilajani added
that Caparo would invite more and more companies
to be part of the facility and that the company
would provide base for them by offering a
wide range of technologies. Naidupet is a
strategic location for the park considering
its proximity to Tamil Nadu's auto industries
and access to Chennai and Krisnapatanam ports.
The new manufacturing park,
coming up in 2000 acres in Naidupet of Nellore
District, would provide employment for 10,000
people. First phase of the project is scheduled
to be complete in 18 months from now at an
estimated cost of Rs.1000 Crores, providing
employment opportunity to 2500 people. With
a range of auto component technologies under
one roof, the company aims to create a base
for car companies and also consolidate aerospace
technologies at one location. A Special Economic
Zone for Auto and Aerospace components would
occupy 500 Acres in this facility. More Auto
and Aerospace manufacturers would be invited
to set up manufacturing units in this Special
Economic Zone.
Andhra Pradesh Government
gave the land at Rs.1 lakh an Acre and also
gave all possible incentives for Caparo to
establish the park in the face of stiff competition
from Tamil Nadu. Ms. Geeta Reddy, the Industries
Minister of AP told that the foundation stone
would be laid in March 2008. Headquartered
in London, currently Caparo's operations are
located at over 50 sites in the UK, North
America, India and Spain with 1 Billion Euro
turnover.
Source: http://machinist.in/index.php?option=com_content&task=view&id=765&Itemid=2
Ashok Leyland and
Nissan form three JV companies for LCV business
in India
Three vehicle platforms
for initial launch - Brand new Euro III/IV
diesel engine to be part of powertrain
Hinduja Group flagship Ashok
Leyland and Nissan Motor Co., Ltd., today
announced the legal formation of the three
JV companies for the Light Commercial Vehicle
(LCV) business in India for vehicle manufacturing,
powertrain manufacturing and technology development.
This follows the signing of the Master Co-Operation
Agreement between the two companies in October
2007.
The shareholding structures
of the three joint ventures are as under:
• Ashok Leyland Nissan
Vehicles Pvt. Ltd., the vehicle manufacturing
company will be owned 51% by Ashok Leyland
and 49% by Nissan
• Nissan Ashok Leyland Powertrain Pvt.
Ltd., the powertrain manufacturing company
will be owned 51% by Nissan and 49% by Ashok
Leyland
• Nissan Ashok Leyland Technologies
Pvt. Ltd., the technology development company
will be owned 50:50 by the two partners.
The aggregate investment in all three companies
will be around Rs. 23 billion (approx. 575
Million USD). The enterprise will involve
a capacity of 100,000 vehicles in the first
phase, to be scaled up subsequently. The plant
is expected to start production from 2010/11.
Among the three platforms identified, covering
applications up to 7.5 ton Gross Vehicle Weight,
is an all-new generation Nissan Atlas F24
light-duty truck. In addition, an all-new
engine is being developed specifically for
LCV applications, as part of the range of
Euro 3 and Euro 4 compliant diesel engines.
Executive comments
Mr R Seshasayee, Managing
Director, Ashok Leyland:“The
current growth plans of Ashok Leyland involve,
not only our stated capacity additions and
new product launches but also, with this important
step, our entry into the fast-growing LCV
segment. The balanced JV structure facilitates
meaningful contribution from both partners
and the best opportunity to leverage their
respective strengths.”
Mr Carlos Tavares,
Executive Vice President, Nissan:“We
made another important step in the creation
of a solid structure that will allow Nissan
and Ashok Leyland to enter successfully the
light commercial vehicle market in India and
global markets. This represents an important
embedded element in our new NISSAN GT 2012
plan based on growth and trust.”
Hinduja Group
The Hinduja Group is an investment
and banking group with a diversified global
portfolio of holdings across the manufacturing
services and banking sectors. The Group, founded
by Shri P.D. Hinduja in 1914, has activities
across three core areas: Investment Banking,
International Trading and Global Investments.
As part of its Global investments, the Group
owns businesses in Automotive, Information
Technology, Media, Entertainment & Communications,
Banking & Finance, Infrastructure, Project
Development, Chemicals & Agri business,
Energy, Real Estate and Healthcare. The Hinduja
Group also supports charitable and philanthropic
activities across the world through the Hinduja
Foundation.
Ashok Leyland
Ashok Leyland is the flagship
of the Hinduja Group and a leading manufacturer
of commercial vehicles in India with 07-08
turnover of more than US $ 2 billion. With
six manufacturing locations at Chennai, Hosur
(three plants), Alwar and Bhandara, the Company
has an annual production capacity of 84,000
vehicles with additional 100,000 vehicle capacity
planned by 2010. The Company has associate
companies in the Czech Republic and the UAE
and joint ventures in Sri Lanka and Bangladesh,
besides exports to over 20 countries worldwide.
Nissan
Nissan Motor Company generated
global net revenues of 10.824 trillion yen
in 2007. Nissan is present in all major auto
markets worldwide selling a comprehensive
range of cars, pickup trucks, SUVs and light
commercial vehicles under the Nissan and Infiniti
brands. Nissan employs over 224,000 people
worldwide.T he Nissan GT 2012 five-year business
plan is focused on the company’s long-term
performance combined with its responsibilities
to stakeholders as a significant global business.
The three commitments are:
• Quality leadership
• Zero-emission vehicle leadership
• Five percent revenue growth on average
over five years (FY2008 to FY2012)
Source: http://machinist.in/index.php?option=com_content&task=view&id=1302&Itemid=2
“Plan to open
22 more Industrial Estates” - Mr. Rajendran
IAS at ACMEE 2008
“There are 78
industrial estates promoted by TANSIDCO including
ones at Thirumudivakkam, Thirumazhisai and
Ambattur. We expect 22 more in the near future”,
said Mr. Rajendran IAS, CMD, TANSIDCO at the
inaugural of ACMEE 2008 - the 8th biennial
edition of International Auto Components and
Machine Tools Exhibition – the biggest
engineering exhibition in South India conducted
by Ambattur Industrial Estate Manufacturers
Association (AIEMA) and AIEMA Technology Centre
(ATC) at Chennai Trade Centre, Nandambakkam,
yesterday (19th June 2008). The exhibition
will be held between 19th and 23rd June 2008.
“If industry has to
grow, MSMEs must grow. Our prime focus is
on promoting the MSME sector. We urge any
budding entrepreneur who started operations
on or after 22 Feb, 2008 with an investment
of 25 lacs for Plant & Machinery to avail
of all government concessions. One is eligible
for Capital Subsidy, Sales Tax Waiver, Electricity
Subsidy, Stamp Duty Concessions etc. from
the Government. Details can be acquired from
www.indcom.tn.gov.in ”, he said.
Dr. A. C. Muthiah
takes a look at one of the exhibits after
inaugurating ACMEE 2008
The
Exhibition was inaugurated by Dr A.C. Muthiah,
Chairman, SPIC. Mr. D. Rajendran IAS, CMD,
TANSIDCO, Mr. J. Chandrasekaran, CGM, State
Bank of India and Mr. Dinesh Agarwal, CEO,
IndiaMART InterMESH were the Guests of Honor
at the Inaugural Function. “Exhibitions
play a vital role not only in business growth
& development but also in attracting foreign
exchange. The success of these kinds of exhibitions
is not only in the number of stalls / visitors
but the business generated. It has increased
from Rs. 40 lacs in 1994 to Rs. 15 crores
in 2006. On the canvas of the Indian economy,
auto industry occupies a prominent place.
This sector has been growing at 20% per annum
since 2000 and is projected to maintain the
high-growth phase of 15-20% till 2015. The
industry crossed a total turnover of over
US $ 15 billion (Rs. 64,500 crores), with
exports of US $ 2.9 billion (Rs. 12,643 crores)
during the year 2006-07.
Exports of auto components
have been growing at 24% per annum since 2000.
A sustained growth in exports for another
five year will see India’s auto components
exports touch US $ 5 billion by 2011 from
the US $ 2 billion at present”, said
Dr A.C. Muthiah while speaking on the occasion.
“I would like to highlight that the
facilities at Chennai Trade Centre are inadequate
and have to be improved. New halls have to
be constructed. We have to construct three
hangers to meet our requirements. Also, the
electric power facility in the Centre is inadequate.
For running machines in halls and for air-conditioning
in hangers we had to use hired gen sets with
a total 5,000 KVA capacity. Consequently,
the cost of organizing the fair has gone up
tremendously”, said Mr. Dilip Kumbhat,
Chairman, ACMEE 2008. “In addition,
I would like to point out that the height
of the halls is relatively low with the result
operation of cranes for handling bigger and
taller machines with wide dimensions became
very difficult. We had to regret to some companies
because of this limitation. I am sure this
issue will be addressed by TNTPO”, he
added.
425 exhibitors participated
in this event covering 18,000 sq.ms. spread
over Halls 1 to 5 and the Convention Centre
of Chennai Trade Centre. Out of the 425 participants
who participated, 42 were from overseas mainly
from China, Hong Kong, France, Germany, Israel,
Italy, South Korea, Sweden, Switzerland, Taiwan,
UK and USA. The rest were from different parts
of the country. The organizers of the Show,
AIEMA and AIEMA Technology Centre, declared
the Theme / Logo of ACMEE 2008 as "…An
Opportunity for Growth". Compared to
ACMEE 2006, the exhibition area covered by
ACMEE 2008 represented a 42% increase. With
nearly 80% of the participants from the SME
sector, the event will be promoting the SME
sector in a big way. The Exhibition covered
all engineering goods and services with a
particular emphasis on auto components and
machine tools.
Concurrent with the exhibition,
Buyer Seller Meets (BSM) for auto components
will be organized on 20, 21, 22 & 23 June,
2008. In these BSMs, the auto majors will
have face to face interaction with the suppliers
of components. Cummins India Ltd., Simpson
& Co. Ltd., Mitsuba, SICAL India Ltd.,
Lucas TVS Ltd., Delphi – TVS Ltd., Greaves
Cotton Ltd., Rane (Madras) Ltd., Brakes India
Ltd., TYCO Flow Control and Same Deutz Sahar
India Ltd. are some of the auto majors who
will participate.
Nineteen Seminars on a wide
variety of topics of interest will be held
during the fair. The Seminars will have the
overall theme as ‘Made in India’
with sub themes on product excellence, innovation
excellence, export excellence, talent excellence,
managerial excellence and quality excellence.
ACMEE 2008 is also promoting industry-educational
institutions tie ups by highlighting projects
of students of eight engineering colleges.
It will also give awards to best projects.
Skill competition for industrial work force
in machining techniques was held on the eve
of the fair and those who qualified will be
rewarded at the Valedictory Function scheduled
on 23rd afternoon. Honorable Minister Mr.
Pongalur N. Palanichamy, Minister for Rural
Industries, Government of Tamil Nadu will
be the Chief Guest at the Valedictory Function.
The other Guests of Honor will be Ms. R. Prabha,
General Manger, Canara Bank and Mr. Mark Seng,
Manager, HURCO, USA.
Source:
http://machinist.in/index.php?option=com_content&task=view&id=1395&Itemid=2
Outbound M&A deals
may come down in 2008
Availability of finance and
the changing economic scenario globally may
see a drop in overseas acquisitions by Indian
companies. A deal that was possible in 2007
may not be considered so this year owing to
the changed economic environment - inflation,
increasing interest costs and others, according
to a leading business consultant firm. The
drop will be evident in sectors like pharma,
auto components, supply chain and information
technology (IT) space as the companies resort
for outbound mergers and acquisitions (M&A)
to gain customers and grow fast, said Jayesh
Desai, national director, Ernst & Young
Pvt Ltd, here Friday.
Addressing the two-day India
Finance Forum seminar, organised by the Confederation
of Indian Industry (CII), here, Desai said
securing their supply chain, control of natural
resources (ONGC buying oil assets overseas),
fast ramping up of their scale of operations
(Tata Steel buying Corus), and getting technology
(Tata Motors buying Jaguar and Landrover)
are the major reasons for Indian companies
going in for outbound M&As. According
to estimates, the total value of global merger
and acquisition (M&A) deals in 2007 was
around $70 billion and India’s share
in that is 2 per cent.
While the outbound deals like
those mentioned earlier and inbound deals
like Vodafone buying out Hutch, and Holcim
investing in Gujarat Ambuja are mega-sized
ones, over 150 M&A deals were of mid-market
size, Desai remarked. He said the drop in
M&A activity will be more perceptible
in the mid-market level deals as the companies
will be facing pressure on profits and cash
flow.
According to him, foreign
companies are interested in acquiring Indian
companies so as to be part of the India growth
story. Besides, there is a pressure on them
to be in the Brazil, Russia, India and China
(BRIC) countries. “But the growth story
should be supported by credible numbers to
attract serious investors as data like low
per capita consumption and others are overused
clichés.”Listing out the reasons
for the promoters of Indian companies willing
to cash out their stakes, Desai said: “Nowadays,
Indian promoters are analyzing their business
portfolios continually and are willing to
exit at right values. Further domestic companies
are constricted to grow beyond a size for
want of appropriate technology.”
Source: http://www.thaindian.com/newsportal/business/outbound-ma-deals-may-come-down-in-2008_10062569.html
Lithium-ion batteries:
a stopgap in the fight against growing emissions
Auto companies and
consumer electronics companies are partnering
to produce lithium-ion batteries.
Auto makers are joining
with consumer electronics giants to produce
lithium-ion batteries for use in plug-in hybrid
electric vehicles. However, although lithium-ion
batteries offer benefits such as ease of recharge
and higher energy density, they are also associated
with potential safety hazards, and so auto
makers must either make them safer or find
other options for alternative fuel vehicles.
The recent tie-up of Bosch
and Samsung highlights the trend that has
seen various auto and auto components manufactures
join forces with consumer electronics companies
in order to manufacture lithium-ion (Li-ion)
batteries for use in vehicles. Earlier this
year, the industry also witnessed similar
tie-ups between Toyota and Matsushita, Volkswagen
and Sanyo and GM and LG, among others.
Li-ion batteries are easy
to recharge, require less maintenance and
produce less pollution than the nickel metal
hydride batteries that are currently being
used, making them a viable and cleaner energy
source for running automobiles. As a result
of these benefits, Li-ion batteries are being
used by vehicle manufacturers to produce
Apart from being easier to
recharge and producing lower levels of pollution,
Li-ion batteries also have a high energy density
and, as a result, can conserve energy more
efficiently than the batteries that are currently
being used. The fact that they have a potentially
higher charging capacity is another reason
why the batteries have become a good choice
for use in PHEVs.
However, these batteries have
some critical disadvantages, one of the most
significant being their safety profile. Indeed,
it has been observed that Li-ion batteries
have a tendency to explode in cases of over-heating.
Another limitation is the fact that many countries
have imposed transportation restrictions on
Li-ion batteries, impeding their distribution.
Li-ion batteries are also problematic for
vehicle manufacturers as they are about 40%
more expensive to make than nickel-based batteries.
Due to the numerous issues
limiting the use of Li-ion batteries, it seems
that PHEVs with Li-ion batteries are, essentially,
just a stopgap to growing ecological concerns.
Thus, vehicle manufacturers must focus on
either making these batteries safer and less
expensive to produce, or look for other alternatives.
'End Intelliext
Source: http://www.automotive-business-review.com/article_feature.asp?guid=0D3E6003-81BF-4F2D-AAD6-AB149980208D
Small exporters hit
by rising yuan and costs
SMALLER
exporters of car components have been hit
by the rise in the yuan and the surge in raw
material costs. But larger international players
in the sector are faring better amid a possible
slowdown in exports of auto parts. "We
have lost customers to competitors in India
and Vietnam for their cheaper price,"
said General Manager Yu of Wenzhou OUPU Auto
Parts Co Ltd, a producer of electric fuel
and water pumps. The Zhejiang Province-based
company lost profits as it concentrated on
exports rather than the after-sales market
in China, he said yesterday. Yu said 10 percent
of the company's profit margin had been cut
by the higher yuan since last year, while
steel prices also increased from 5,000 yuan
(US$721.14) per ton to 8,000 yuan per ton
in the period, worsening its profitability.
"We may not make a profit this year,"
he added. However, the picture is brighter
for NSK China Sales Co Ltd, which supplies
parts to Japanese and European auto makers
in China.
Ozaki Michio, the company's
marketing manager, estimated that revenue
from its bearings will double this year, given
technological advantages and the fast development
of the auto industry. "China's auto industry
will retain 20 percent growth for this year
and the business depends on which customer
you serve," said Michio. Michio noted
that NSK mainly supplied parts to Japanese
and European auto makers, which are expected
to grow faster than their United States counterparts.
It also helped to shrug off the disadvantage
from the higher yuan on the export market.
On the rising cost of raw materials, Michio
said large auto parts makers can more easily
streamline operations for better cost efficiency
compared with smaller companies. OUPU Auto
Parts was among more than 300 auto parts makers
to attend the opening day of Auto Components
Shanghai 2008 yesterday. xThe biennial show
with a 12,000-square-meter display area will
run until tomorrow, Shanghai International
Exhibition Co Ltd said. The development of
China's auto industry has been fast, with
vehicle sales estimated to hit 12 million
units by 2010. The total production value
is forecast to hit 670 billion yuan this year,
and the export value is likely to grow 30
percent, according to industry experts.
Source: http://www.shanghaidaily.com/sp/article/2008/200806/20080603/article_361719.htm
ICRA assigns
LA & A1 ratings to Bajaj Motors
ICRA has
assigned LA rating to the Rs 150 million long
term loans and Rs 150 million cash credit
facilities of Bajaj Motors (BML). ICRA has
also assigned A1 rating to the Rs 100 million
non-fund based limits of BML. LA is the average-credit-quality
rating assigned by ICRA. The rated instrument
carries average credit risk.
Within the LA category, a
(+) or (-) sign may be appended to the rating
symbols to indicate their relative position
with the rating category. A1 is the highest-credit-quality
rating assigned by ICRA to short term debt
instruments. The rated instrument carries
lowest credit risk in the short term. Within
this category, certain instruments are assigned
the rating of A1+ to reflect their relatively
stronger credit quality.
The rating takes into account
BML`s position as an established supplier
of auto components, mainly precision engine
components to Hero Honda Motors (HHML) and
four wheeler, tractor and heavy machine equipment
manufacturers.
The rating factors in the
stable share of business enjoyed by BML for
the components it supplies to HHML, the company`s
presence in diverse business lines viz., forging,
casting and machining and new client additions
both in the domestic as well as the export
market.
The rating also takes into
account the pressure on operating margins,
which coupled with investment in new plants
has resulted in moderate RoCE. However, BML`s
steady accretion to reserves and limited reliance
on debt has resulted in a favorable financial
risk profile as reflected in low gearing and
comfortable liquidity position.
Source: http://www.myiris.com/newsCentre/newsPopup.php?fileR=20080619171620193&dir=2008/06/19&secID=livenews
Magneti Marelli and
Endurance form JV to manufacture Shock Absorbers
Agreement between
Magneti Marelli and Endurance in India: Joint
Venture for Shock Absorbers
New Delhi, India: Magneti
Marelli and Endurance Technologies Pvt. Ltd.
have signed a Joint Venture Agreement (JVA)
aimed at the production of shock absorbers
for motor vehicles in India & Thailand.
According to the terms of the agreement, the
Joint Venture Company (JVC) will be owned
by Endurance Technologies & Magneti Marelli
in the ratio of 50% +1 share (Endurance Technologies)
and 50% -1 share (Magneti Marelli). The JVC
is set to be operative by the first quarter
of 2009.
Facilities in Chakan
and Thailand
The industrial facilities
will be located in Chakan, in the region of
Pune, Maharashtra. Another production unit
is also planned in Thailand, near Bangkok,
where the Endurance Group is already present.
The JVC will specifically deal in the design,
production and marketing of shock absorbers
– including semi-corner modules and
gas springs – for cars and commercial
vehicles. The products made by the JVC will
be aimed at local and international car makers
operating in the Indian continent and in nearby
regions. “The agreement with the partner
as important as Endurance, leader in India
and with an international industrial imprint”
– commented Eugenio Razelli, Magneti
Marelli’s CEO – confirms our strategy
to be directly present in one of the most
strategic markets in the world. The combination
of our technologies, broad product range,
innovations such as the electronic dampening
system of “SDC” suspensions and
our global presence makes our offer in the
shock absorbers field a very competitive one,
capable of satisfying new strategic markets
such as, for example, the BRIC – Brazil,
Russia, India, China – region and Turkey.
Endurance is an international
group specialized in Aluminium Die Casting
and specifically in the production of vehicle
components and systems such as suspensions,
transmissions and braking systems. Endurance
also has presence in Italy, with production
facilities at Turin and Bologna and in Germany
with production facility at Massenbachhausen.
Thanks to this agreement, Magneti Marelli
consolidates its global footprint in the shock
absorbers sector. In addition to this JVC,
Magneti Marelli also has a consolidated presence
in South America, the U.S and Poland, with
an industrial mission addressed to both OE
manufacturers and the Aftermarket.
Magneti Marelli, a company
belonging to the Fiat Group, designs, produces
and markets advanced systems and components
for motor vehicles. With its 46 production
facilities (56 production units), 9 R&D
centers and 27 application centers in 16 countries,
28,000 employees and a turnover of 5 billion
Euros in 2007, the group supplies all the
leading car makers in Europe, North and South
America and the Far East. The business areas
include: Power train – Suspensions and
Shock Absorber systems – Lighting –
Electronic systems – Exhaust Systems
– Aftermarket Part & Services –
Motor sport.
About The Endurance
Group:
The Endurance Group began
in 1985. The main business of this Group is
in the field of Auto components comprising
mainly of two streams: Aluminium Die casting
products, that contributes to about half of
the domestic turnover and the other being
Proprietary products consisting of suspension,
braking and transmission systems. The company,
currently enjoying cost and quality leadership
in its field is highly people focused and
believes in providing optimum solution to
its wide customer base.
Last year Endurance Technologies
made three international acquisitions (Italian
companies Nuova Renopress & Fondalmec
and Germany-based Amann Druckguss). The group
is also developing a number of components
for the Tata - Nano mainly gear housing, engine
castings and bracket. Endurance Group will
provide CVT housing also. Endurance Group
has invested Rs. 35 crores to set up a facility
in the Tata Vendor Park for small cars project
at Singur. The facility spreads over 8 acres.
In the first phase components supplied would
be 2 to 2.5% parts of the Tata Nano. The Endurance
Group today has a customer list of who’s
who of the two and four wheeler auto OEMs
in the country. The group also exports goods
worth over INR 75 crores to the US and European
and Asian markets.The group this year has
been awarded the “Best Component Manufacturer
of the year” by NDTV Profit in their
Car and Bike Award Show held during the Auto
Expo 2008 and also by Auto Monitor.
Source: http://machinist.in/index.php?option=com_content&task=view&id=1383&Itemid=2
