AUTO COMPONENTS INDIA SEPTEMBER 2020 by Next Gen Publishing Pvt Ltd

www.autocomponentsindia.com Vol 7 Issue 07

` 100

September 2020

COMPONENTS

INDIA

Voice of the AutomotiVe SupplierS

Protec Industrial Coating Range

The Tough Get Going

Manufacturing Excellence and Sustainable Growth l

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Maruti Suzuki India: Strengthening Sustainability Performance l New Challenges For Engine Sensors In Hybrid Powertrains l E-mobility: A Dream To Pursue Despite Covid-19 @ACImagazine

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Content September 2020

COMPONENTS

INDIA

Cover Story

15 The Tough Get Going

The tough Micro, Small and Medium Enterprises get going to overcome the existential crisis and rejoin the growth path.

Maruti Suzuki India: Strengthening Sustainability Performance

Maruti Suzuki India continues to strengthen its sustainability performance as the market leader in the passenger vehicle segment.

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SIAT 2021 is rescheduled Apollo Tyresâ&#x20AC;&#x2122; new Limda plant facility Dr Seshu Bhagavathula retires ABB India commissions new robotics facility LMC solves spare parts scam MoU between CBDT and MoMSME Maha Jobs Portal Indiaâ&#x20AC;&#x2122;s first EV park in Tamil Nadu? Rural unemployment on the rise IIT Madras raises Rs.113 crore RBI cautions on rising NPA Risky exporters on the radar Hong Kong imports under scanner Purchase Manufacturing Index shrinks Tata Motors health and hygiene accessories Import ban on 101 defence items

13 Mobilised n

Protec Industrial Coating Range

22 Business Filing n

Transforming Manufacturing

24 Special Reads n

New Challenges For Engine Sensors In Hybrid Powertrains E-mobility: A Dream To Pursue Despite Covid-19

30 Trending n n

Manufacturing Robotic Automation Revitalising Asia-Pacific Businesses

38 International

Circular Economy Plastic Production

40 #Trendsmap

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150 Hard Days

AUTO COMPONENTS INDIA

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Production Supervisor Dinesh Bhajnik Publisher Marzban Jasoomani General Manager – North & East Ellora Dasgupta General Manager – South Girish Shet Deputy General Manager – North & East Chanchal Arora (Delhi) Regional Marketing Manager Salma Jabbar (Chennai) Marketing Manager Minocher Parakh (Mumbai) Manager Circulation - North and East Kapil Kaushik (Delhi) Subscription Supervisor Sachin Kelkar Tel +91 22 43525220 Apple Newsstand & Magzter Queries: help@magzter.com Territory Sales Incharge (Circulation) Srinivas Gangula (Hyderabad) Cell +91 09000555756 Territory Sales Incharge (Circulation) Vidyasagar Gupta (Kolkata) Mob: 09804085683 REGIONAL MARKETING OFFICES Next Gen Publishing Pvt. Ltd. 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India, Mumbai -400013. Tel +91 22 43525252 26 B, First Floor, Okhla Industrial Estate, Okhla Phase III, New Delhi - 110020, India Tel +91 11 42346600/78, Fax +91 11 42346679 Unit No:509, 5th Floor, ‘B’ wing, Mittal Towers, MG Road, Bengaluru - 560001, India Tel +91 080 66110116/17, Fax +91 80 41472574

To ensure the momentum is not lost, ACMA has recommended to the Government to accord ‘continuous production industry’ status to the automotive industry.

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Views and opinions expressed in the magazine are not necessarily those of Next Gen Publishing Pvt. Ltd. Next Gen Publishing Pvt. Ltd. does not take responsibility for returning unsolicited manuscripts, photographs or other material. All material published in Auto Components India is copyright and no part of the magazine may be reproduced in part or full without the express prior written permission of the publisher Printed by Marzban Jasoomani Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.. Published by Marzban Jasoomani on behalf of Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Printed at Spring Graphics, 215 & 238, Shah & Nahar Industrial Estate, Sun Mill Compund, Lower Parel (West), Mumbai 400013, India. Published at Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.

All readers are recommended to make their own independent enquiries before sending money, incurring expenses or entering into commitments in relation to any advertisement appearing in the publication. Auto Components India does not vouch for any claims made by advertisers for their products and services. The editor, publisher, printer and employees of the publication shall not be held liable for any consequence in the events of such claims not being honoured by the advertisers. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only. Editor Ashish Bhatia

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AUTO COMPONENTS INDIA n SEPTEMBER 2020

Asst Art Director Ajit Manjrekar

e complete 150 hard days since the lockdown came into effect and you all will agree they have been the hardest on the components industry and for us Publishers. As we publish and print the sixth issue of the lockdown and now the unlock phase, the efforts from the auto components industry have been both inspiring and reassuring of a recovery being around the corner. As Auto Component Manufacturer Association (ACMA), President, Deepak Jain and Director General, Vinnie Mehta also expressed in the recently held Industry Performance Review for the fiscal year 2019-20. Brushing aside an out of purview, hacking blooper with good grace at the start of the virtual meet, it was remniscent, of how the components industry and OEMs fought the Covid-19 induced hardships pertaining to working capital, production and disfunctional logistics among other existential issues. Optimistic of riding on the green shoots in to the festive season, the industry is striving hard to attain the pre-covid levels. To ensure the momentum is not lost, ACMA has recommended to the Government to accord ‘continuous production industry’ status to the automotive industry. As we root for the industry demands to be met in due course of time as may be deemed fit, we dedicate the September issue of the Print Magazine and Ezine to the ‘Manufacturing Excellence and Sustainable Growth Practices’ of the automotive industry. I take this opportunity to also laud the industry workforce that has made themselves count on ground zero!

Newscast

SIAT 2021 is rescheduled Organised by ARAI, Symposium on International Automotive Technology (SIAT 2021) has been rescheduled in light of the Covid-19 outbreak and associated disruptions. Scheduled erstwhile between January 20-22, 2021, the biennial event will now be held between September 29, 2021 and October 01, 2021. Serving as a knowledge sharing platform, this will be the 17th edition of the event. The theme this year is

‘Redefining Mobility for the Future’. Over 200 technical

papers, including 40 keynotes on various subjects

are slated to be presented. Hosted in association with SAEINDIA, NATRiP and SAE International (USA), in Pune, India, the SIAT 2021 edition is expected to host companies, both domestic and global, looking to showcase their products, technologies, innovations and services. Symposium proceedings and technical reference bulletin containing technical articles, case studies and product information would also be published.

Apollo Tyres’ new Limda plant facility With a global product portfolio of high-end bias and steel radial tyres to its credit, Apollo Tyres is aiming for leadership in the premium two-wheeler segment in India. To attain the vision, the company recently opened a state-of-theart facility in Vadodara, Gujarat within the Apollo Tyres’ Limda plant. Set-up to produce high-end tyres, the facility

was virtually inaugurated by Onkar S Kanwar, Chairman and Neeraj Kanwar, Vice Chairman and MD at Apollo Tyres alongwith other supervisory board members including select business partners. Catering to the top 20 per cent of the motorcycle market, the company wants to build a strong foothold in the high-value, highly profitable, premium

motorcycle tyre market. In line with the strategy, the company also inaugurated a dedicated commercial facility to manufacture two-wheeler radial and cross-ply tyres. Spread over 10,000 sq.m, the facility will initially produce an estimated 30,000 motorcycle radials and 60,000 motorcycle cross-ply tyres on a monthly basis.

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Dr Seshu Bhagavathula retires

Four years after joining Ashok Leyland Ltd., as the Chief Technology Officer (CTO) in 2016, Dr Seshu Bhagavathula – President, New Technologies and Business Initiatives has decided to move on. With his extended contract known to have ended, the veteran will now join Volta trucks as a member of its board. Dr Bhagavathula is known to have been instrumental in the development of new technologies and business initiatives in the company. The recently launched modular truck platform, AVTR, being one of them. www.autocomponentsindia.com

Others being the transition to BSVI, Electric Vehicles (EVs), and the development of the mid-to-long-term product planning roadmap. Starting off as a manager for Daimler AG, he moved to become the Managing Director for Mercedes-Benz Research and Development in India. Prior to joining Ashok Leyland he also worked with Apollo Tyres as their CTO. His other stints were with the Great Wall Motor Company and SMR Automotive Services GmbH, Motherson Group. An IIT Bombay graduate,

Dr Bhagavathula, holds a Ph.D in high frequency technology (RF) from the University of Stuttgart.

Confederation of Indian Industry 125 Years - Since 1895

6th Edition

Future of mobility: Growth of electronics contents leading to Affordable, Safer and Efficient mobility Virtual Conference: 24 September 2020 : 0930 Hrs - 1800 Hrs

The Tamil Nadu Technology Development & Promotion Centre of CII is organizing the 6th Edition Conference on Automotive Electronics with the theme “Future of mobility : Growth of electronics contents leading to Affordable, Safer and Efficient mobility” on 24th September 2020 between 0930 Hrs 1800 Hrs at WebEx Platform. This conference is chaired by Mr Suresh D, CEO & Group CTO, Spark Minda Technical Centre, Minda Corporation Limited.

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Dr Ravi M. Bhatkal, Ph.D., Managing Director, India, MacDermid Performance Solutions

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Mr Manikandan P, Director Powertrain, Ola Electric Mobility

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Mr Arvind Chandra, CEO - Business Vertical (Mechatronics), Minda Corporation Limited

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Mr Shinto Joseph, Director, LDRA Technology

This is an initiative to discuss the current and future trends in automotive electronics and offer opportunities for stakeholders to establish synergy in the special area of interest.

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Mr Santhoshkumar R, Sr. Director, Flextronics Technologies

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Mr Guruprasad Mudlapur, Managing Director, Bosch Automotive Electronics India Pvt. Ltd.

The conference sessions include :

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Mr SirishBatchu, Managing Director, Danlaw Technologies India Limited

Focus Areas: Electric Drives | Charging Infrastructure | Battery Technologies & Battery Management Systems | Regulations

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Mr Randeep Singh Khokar, Head - Electrical & Electronics, Tata Motors Limited

Session 2: Vehicle ADAS, Safety & Security

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Mr Rafiq Somani, Ass. Vice President, ANSYS, Inc.

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Mr Sandeep Singh, General Manager - India, A2Mac1 India

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Mr Binoy Paul, Associate Chief Engineer, Mahindra and Mahindra Limited amongst others.

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Session 1: Electric Vehicles

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Panel Discussion: Electronics challenges in Indian Auto Industry & Way forward

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The following key eminent speakers addressing / invited to address in the conference include: 

Mr Suresh D, Conference Chairman & CEO & Group CTO, Spark Minda Technical Centre, Minda Corporation Limited

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Mr Girish Kamala, Director and Country Head Automotive SMD, Infineon Technologies

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Dr Shankar Venugopal, Vice President, Mahindra & Mahindra Ltd

Conference Sponsors are Infineon Technologies India (P) Ltd, MacDermid Performance Solutions, Sibros Tech&Ansys Software (P) Ltd. More than 200 senior management personnel from diverse industries from across India and abroad are expected to participate in this conference. The conference timings are : 0930 Hrsto 1800 Hrs. Please confirm your participation / nominations through online registration https://fs24.formsite.com/CIISR/ntsesofmqn/index.html Conference Delegate Fee (in INR/ Per Participant/including GST) Rs. 1500 per participant for CII Member Rs. 2000 per participant for Non-member Rs. 1000 per participant for Educational Institution For more details about the conference sponsorship / branding / speaking opportunities, please contact my colleague: Mr K S Johnson 9840948053 / email: k.s.johnson@cii.in Please confirm your participation / nominations through online registration www.automotiveelectronics.tntdpc.com

Conference Magazine Partner

Newscast AUTO COMPONENTS INDIA n SEPTEMBER 2020

ABB India commissions new robotics facility

Aimed at facilitating digital transformation of manufacturing, ABB India recently commissioned a new robotics facility. Located at the ABB Nelamangala factory premises in Bengaluru, the facility was inaugurated at the hands of Sanjeev Sharma, Managing Director at ABB India. ABBâ&#x20AC;&#x2122;s YuMi, a dual-armed cobot was the highlight of the socially distanced event. Spread over 3,600 sq.m, the new robotics solutions delivery facility enables ABB India to deliver robotic applications

and digital solutions for a host of industries including automotive. Claimed to offer cutting-edge robotics and digitalisation technologies, the facility also has a state-of-the-art shop floor. It is said to be capable of doubling the companyâ&#x20AC;&#x2122;s capacity by running proof of concepts and factory acceptance tests for 1000 ABB robots on an annual basis. Aimed at making India a resilient, high-tech manufacturing economy in the world by adopting rapid innovation, adaption, optimisation and agile

www.autocomponentsindia.com

delivery of made-to-order robotics applications, it is aimed at Indian customers and to help them reap the benefits of Industry 4.0. At the facility, a demonstration centre hosts the latest technologies in robotic welding, glueing and material handling. Especially designed to carry out joint prove-out sessions with customers, it also helps monitor an installed base of ABB robots, and through the ABB AbilityTM Connected Services team, remotely conduct predictive maintenance to ensure high

uptime. The customers can learn about the dedicated robot simulation and programming software, RobotStudio, through a new Customer Experience centre. In the paint lab, customers can run simulations of a broad range of industrial painting applications. Having already shipped over four lakh robots across the globe, ABB wants to cater to the growing demand for automation solutions by designing a complete digital ecosystem. Tailored to the Indian market.

Newscast

LMC solves spare parts scam After carrying out an inspection of the past transactions of a Lucknow Municipal Corporation (LMC) appointed contractor, several motor vehicle spare parts supplied for trucks and other vehicles were found to be overpriced as per allegations. Used by the Rubbish Removal (RR) department of LMC, the spare parts are reported to have been supplied in the year 2018-2019. LMC has put an end to it by banning 18 companies claimed to have been involved. It has also issued recovery certificates to retrieve the extra payment of Rs.1.16 crores paid sans any scrutiny.

The Central Board of Direct Taxes (CBDT) and the Ministry of Micro, Small and Medium Enterprises, Government of India (MoMSME) signed a Memorandum of Understanding (MoU) to facilitate data sharing. Signed by Anu J. Singh, Principal Director General of Income Tax (Systems) at CBDT and Devendra Kumar Singh, Additional Secretary and Development Commissioner, MoMSME, the MoU will help MoMSME in acquiring data on Income Tax Returns (ITR) filed by MSME. In effect July 20, 2020, it will enable the MoMSME to check and classify enterprises in Micro, Small and Medium categories as per the criteria notified in the notification No. S.O. 2119(E) dated June 26, 2020, of MoMSME. To further ease the process of data transfer, both the organisations have decided to appoint a nodal officer and alternate nodal officers.

Aimed at providing employment opportunities to local residents including skilled, semi-skilled and unskilled workers in the state, the Maharashtra government launched the â&#x20AC;&#x2DC;Mahajobâ&#x20AC;&#x2122; portal. Inaugurated by Maharashtra Chief Minister - Uddhav Thackeray, the portal is expected to help the unemployed youth in acquiring jobs while helping companies meet their requirement of skilled labourers. Designed to meet the shortage of resources owing to a high rate of migration out of the state, job seekers will are required to submit their domicile certificate while registering on the portal. With 13,300 job seekers and 147 entrepreneurs signing up on the portal on the launch day, the portal will facilitate jobs in 17 sectors, including in IT, engineering, textile and chemical. The joint venture between the Department of Industries, Department of Labor and Skill Development-Entrepreneurship of the Government of Maharashtra aims to put in place a permanent mechanism for recruitment, seamless function aimed at benefitting the state population. www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

MoU between Maha Jobs Portal CBDT and MoMSME

Newscast

India’s first EV park in Tamil Nadu? To develop the Electric Vehicles (EV) production ecosystem, Tamil Nadu government is looking to exclusively set up India’s first EV park. To be spread across 300 acres, the park is part of the Rs.50,000 crores investment plan by the state. Announcing a series of incentives and subsidies for both the supply side and demand side in a bid to attract investments, the state aims to create 15,000 jobs in the EV space alone. According to Neeraj Mittal, MD & CEO at Guidance Bureau, Tamil Nadu, the policy covers the EV ecosystem with incentives to EV charging stations developers and aims to tap the components ecosytem of battery and cell manufacturing,

electric motors, EV powertrains, and battery management. The state is luring investors with incentives including 100 per cent Goods and Services Tax (GST)

reimbursement and 50 per cent capital subsidy. Recent MoUs signed include companies like Ather Energy, MAHLE Electric and BYD to name a few.

Rural unemployment on the rise

According to data from an economic research house, Centre for Monitoring Indian Economy (CMIE), India’s rural unemployment rate rose by 7.66 per cent in the week ending July 26, 2020 compared to the 7.1 per cent reported

the previous week. On the other hand, the urban job loss rate was 9.43 per cent against 9.78. Likewise, the national unemployment rate also ascended to 8.21 per cent compared to 7.94 per cent in the week ending July 19, 2020. Not expecting

a recovery soon, economists and experts mentioned that replacement jobs and new job creation would take time due to fresh lockdown measures announced by local governments in their respective states owing to the spike in Covid-19 cases.

AUTO COMPONENTS INDIA n SEPTEMBER 2020

IIT Madras raises Rs.113 crore

To support expansion of the campus infrastructure, research and development projects coupled with diverse student and faculty initiatives, the Indian Institute of Technology Madras (IIT Madras) raised a sum of Rs.113 crore from its alumni and corporate firms under Corporate Social Responsibility (CSR) in FY201920. Marking a significant growth in fundraising by the institute, from rupees four crores during FY2010-11. Claimed to be the highest amount raised by an Indian educational institution in a given financial year, over half of the funds raised were through new and first-time donors. Overall, the institute witnessed about 200 donors funding IIT Madras in FY2010-11 and over 1,000 comparatively in FY201920. The office of alumni relations and www.autocomponentsindia.com

the Office of Institutional Advancement (OIA) were established to raise funds from alumni and other corporate well-wishers through CSR initiatives. The institute has

also established not-for-profit foundations in the US, the UK, Canada, Singapore, and Germany to raise funds from alumni in those respective countries.

Newscast

RBI cautions on rising NPA scheduled commercial banks, under the baseline scenario, the gross NPA ratio is Image Courtesy: thehindu.com

The RBI, through its Financial Stability Report, cautioned on rising level of NonPerforming Assets (NPA). Projecting the highest level in two decades, the report projects the Covid-19 pandemic and related measures like lockdown to significantly push up bad loans for the banking sector. According to the report, NPA of the banking sector could jump to 14.7 percent of total loans by March 2021. In a stress test covering 53

projected to rise to 12.5 per cent. As of March 2020, the ratio stood at 8.5 per cent of total advances. Public sector banks could witness a gross NPA rise to 15.2 per cent by March 2021 from 11.3 per cent a year ago. It could attain the 16.3 per cent level in a ‘very severe stress’ scenario, the report warns. Both, the private banks and foreign banks could also witness a spike in their bad loans owing to worsening macroeconomic factors.

Risky exporters on Hong Kong the radar imports under scanner? Imports sourced from Hong Kong could draw greater scrutiny with China-India trade dynamics evolving. Allegedly, rising exports are found to have been routed from Hong Kong with reports claiming China’s use of Hong Kong as a transhipment hub for exports to the rest of the world. While the import of lithium-ion batteries from China to India declined by 14 per cent to USD 668 mn in FY20, the import of the same item from Hong Kong is found to have been increased by 31 per cent to USD 349 mn in the same period. In effect, India’s trade deficit with Hong Kong is on the rise compared to the China decline.

www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

The Revenue Department is said to be planning a stern action against 1,474 ‘risky exporters’. Allegedly untraceable, the exporters in consideration are said to have claimed GST refunds worth Rs.2,029 crore. There are seven ‘Star Exporters’ out of which five operated from Delhi, and one each from Mumbai and Kolkata. Out of the 1,474 untraceable exporters, 1,125 exporters are from Delhi alone. With over rupees 1.37 lakh crores IGST refunds disbursed already, only 2,026 crore is pending and is in process as per law. Data analytics by CBIC’s Directorate General of Analytics & Risk Management (DGARM) is based on 360 degree profiling of exporters using multiple data sources (GST, Income Tax, Customs, DGFT, etc.) rejecting refunds of such untraceable firms. The CBIC responsibility includes verification of each exporter in a two-stage verification process and is claimed to require minimal documentation.

Newscast

Purchase Manufacturing Index shrinks Purchase Manufacturing Index (PMI) has shrunk. From 47.2 in June 2020 to 46 in July 2020 as per the data released by the data analytics firm, IHS Markit. Said to have undermined the stabilisation trend of the earlier

two months, firms are stated to be struggling with a fraction of clientele yet to become operational. Manufacturers are inturn expected to face issues until the lockdown restrictions are removed completely and the infection rates

sharply decline, opined Eliot Kerr, Economist at IHS Markit. Export orders have also been on the decline due to the prevailing uncertainty. The decrease in PMI is also attributed to the disrupted supply chains.

Tata Motors health and hygiene accessories To provide Tata car owners with an additional level of safety for their new and existing cars, Tata Motors rolled out health and hygiene accessories. Offered under the umbrella of Tata Motors Genuine Accessories, across all Tata Motors outlets in the country, the new accessory range includes Air-o-Pure 95 air purifier, Air-o-Pure 95 air filter and the Health-Pro sanitisation kit. Equipped with an active carbon HEPA filter and UV- C light, the air purifier is claimed to improve the air quality by removing volatile organic compounds along with virus and bacteria. It also filters out

hazardous smoke. Air-o-Pure 95 air filters, on the other hand, will filter out bacteria and viruses of up to 0.3 microns thus improving the quality of the in-cabin air and eliminating the risk of allergic reactions and respiratory disorders. Offering one-stop solution in the form of Health-Pro sanitisation kit designed to provide the customers with critical hygiene items like hand sanitisers, N95 Masks, hand gloves, safety touch key, tissue box, mist diffuser and a driving kit with covers for the exposed touch points like the steering wheel, handbrake, gear knob and the seats. The company will

additionally offer a vehicle air and surface disinfectant service to emit ozone. To facilitate social distancing, separator films are also on offer.

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Import ban on 101 defence items

India has banned import of 101 defence items to boost local manufacturing supporting the Atmanirbhar Bharat initiative of becoming self-reliant. According to Rajnath Singh, Defence Minister of India, all the required steps are being taken for production timelines of the equipment on the negative import list to be met. Opening up new avenues for the defence sector, this movement will aid defence equipment manufacturers with contracts worth rupees four lakh crores. The list includes items like assault rifles corvettes, missile destroyers, light combat helicopter, ship-borne cruise missiles, light combat aircraft, a variety of radars among others. The list also www.autocomponentsindia.com

includes wheeled Armoured Fighting Vehicles (AFVs) with indicative import embargo date of December 2021, of which the Army is expected to contract almost 200 at an approximate cost of over Rs.5,000 crores. The ban on these imports will progressively happen between 2020 and 2024. The ministry also plans to add more items on the list after reviewing the list every year. The ministry has finalised this list of 101 items post consultations with all stakeholders, including the military and the industry. They have also factored in future capabilities of the defence sector to enhance the manufacturing of local defence equipment and ammunition.

Mobilised

Protec Industrial Coating Range Nippon Paint India’s Protec marks the company’s expansion in the industrial coatings segment. rotec marks Nippon Paint India’s expansion in the industrial coatings segment. At the virtual launch event, the company introduced, the Protec range which includes a suite of products: primers, topcoats and specialised coating. The new range, aimed at meeting the industrial coatings segment pull will help the company expand exponentially, according to Sharad Malhotra, President, Nippon Paint India – Automotive Refinishes & Wood Coatings. “We expect the Protec brand to add Rs.50 crore to the top line in the next two to three years,” he averred. With Protec, the company

Salient features n

Highly durbale coatings Better coverage and performance Resistance to environment and chemical elements Bonds well with various ferrous and non ferrous substrates

aspires to turn paint process specialists offering end to end solutions. “At Nippon Paint India, our focus is to offer a comprehensive package of products and solutions and the best value for money to all our customers. We aspire to turn paint process specialists, and we aim to provide end to end solutions that ensure higher productivity, better protection, best quality and overall enhanced performance to our customers,” added Malhotra. Claimed to be an outcome of Research and Development (R&D) efforts put in, in the last quarter(April-June’2020), the claimed indigenously developed suite is developed to comply with the Atmanirbhar Bharat movement. “This range required us to develop technology-driven products that can withstand and protect surfaces under extreme weather and chemical environment. Protec meets the industrial standards of corrosion protection, chemical resistance, appearance and performance. It delivers maximum results and best value for customers”, added Siddharth Sharma, Senior Sales and Marketing Manager, Nippon Paint India Automotive Refinish. Explained Sharma, that the new range of products is tailor-made for industrial users, seeking optimised painting solutions for protection and maintenance purposes.

Protec range

With a highly durable coating and claimed improved coverage and performance, Protec, www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Story by: Deven Lad

Mobilised

Protec Range 1K Paint Primers Red Oxide Primers 1K Zn Chromate Anti Corrsive Black 2K Paint Primers 2K Red Oxide Primers Zinc Rich Zn Phosphate and Zn Chromate Epoxy topcoat - 20 Shades FMS PU topcoat

Topcoats High-gloss enamels 20 Shades FMS Chl Rbr topcoat Intermediate MIO Specialised coating Heat resistance coating Rust Preventer coating

according to Sharma, offers a high degree of resistance to the environment and chemical elements. Explaining that the adhesion bonds well with various ferrous and non-ferrous substrates, he added that the range offers ease of application and configuration. Especially with different spray systems like pneumatic assist type airless spray systems. Protec will be made available in two system variants: 1K system and 2K system. While the 1K system range of products will offer a base plus thinner, the 2K system range of products will provide a base plus hardener.

AUTO COMPONENTS INDIA n SEPTEMBER 2020

1K paints coats

1K paints coats are known to be independent of a catalyst required to harden. In effect, the clear coat on the surface application doesn’t need additives to dry. The Protec 1K chlorinated rubber topcoat, for instance, is a single pack air drying chlorinated rubber-based finish suited to structural steel protection. Applicable to the interior and exterior use, it offers ease of application and good flow, high coverage, waterresistance and drying properties. Nippon is offering single pack air alkyds (polyester modified by the addition of fatty acids and other components ) primers like red oxide, zinc phosphate and zinc chrome pigments. The anti-corrosive black www.autocomponentsindia.com

primer offered is based on bitumen, a unique combination of bitumen resin, pigments and solvents. The 1K product range includes Protec 1K Red oxide Primer, Protec 1K Grey Primer and Protec 1K ZC Yellow primer.

2K paint coats

2K paint coats, in contrast, require a catalyst for the paint to harden failing which the layer will not fully dry. Under 2K, Protec offers specially formulated primers based on red oxide, zinc phosphate and zinc chrome pigments besides epoxy resin. A suite of highly anti-corrosive and anti-rust, it is specially made for metalwork based on epoxy resin and zinc pigment. For instance, Epoxy MIO grey and Epoxy MIO brown is a specially formulated primer

Sharad Malhotra, President Automotive, Commercial and Wood Coatings, Nippon Paint (India)

based on the pigments and epoxy resin combination. It is suited to all types of ferrous metals. The 2K product range includes EP Red Oxide Primer, EP Grey Primer and EP ZC Yellow primer.

Go-to-market strategy

The company has signed on 50 industrial dealers as part of its go-tomarket strategy. Expected to add more partners by the year-end, Nippon, according to Sharma will leverage the well-established relationships with leading commercial vehicle Original Equipment Manufacturers (OEM), State Transport Undertakings (STU), private bus and coach manufacturers among other industrial customers. He opined that the Protec brand would help the company’s dealers to, in turn, reach out to their customers more effectively, resulting in profitability for both the channel and business partners. The renewed customer focus, he said, would help the company connect with customer requirements in a powerful way. Speaking of the brand evolution, he shared, “Protec is not just going to be a simple one-time created product solution. We hope that as we develop the market, we will be launching more and more technology solutions under the Protec brand.” ACI

Cover Story

The Tough Get Going The tough Micro, Small and Medium Enterprises get going to overcome the existential crisis and rejoin the growth path.

(L to R): Raj Mistry and Kishore Mistry, Dullabh Commercials at their Mumbai unit.

icro, Small and Medium Enterprises (MSME) are the backbone of any country. In India, MSME is the economic engine. Constituting an estimated 45 lakh enterprises in India, MSME contributes 30 per cent income of the Gross Domestic Product (GDP). Forty-eight per cent of our exports are from MSME. When profitability was already reeling under the pressures of significant revenue decline in Q42020, matters worsened. The already low manufacturing capacity utilisation faced an unprecedented closure compounding demand-side woes with the supply-side shock. The Covid-19 pandemic gave rise to difficult circumstances to the extent that a majority were staring at insolvency. Within months of the epidemic, cash, labour, and raw materials turned to be the focal point as they proved to be the biggest roadblocks for staging a recovery, let alone pursue growth.

Market Analysis

According to a Crisil Quantix study, at 17-21 per cent, the fall in revenue is steep. A sharp decline at the operating level meant a negative impact on creditworthiness, aggravated liquidity stretch, especially on the working capital front. The average interest service coverage ratio could slide to 1-1.5 times from 2.4 times registered between fiscals 2017 and 2020. Notably, it is after factoring in the benefit of the moratorium on interest payments announced by the Reserve Bank of India (RBI). In the absence of moratorium, the ratio could have well slipped below one, cites Crisil. The challenge, hardest for micro-enterprises that account for 32 per cent of the overall MSME debt. In a Crisil survey, auto-component manufacturers and auto dealers donâ&#x20AC;&#x2122;t expect a rebound before fiscal 2022. An approximate 35-40 per cent of auto component stakeholders reported order deferrals by OEM. A Brickwork Ratings study expects an average 100 basis points EBITDA margin decline in FY21 for auto components companies due to pricing pressure from OEMâ&#x20AC;&#x2122;s; to refrain from passing price hike to consumers on account of BSVI norms in a subdued demand scenario. Among other challenges are getting back workforce to the plant, higher cost of humanitarian issues, slowed down order offtake by the customers in exporting geographies, postponement of new model launches by OEMs, costs associated with the change in procurement channels and liquidity issues due to high inventory and receivables. Overcoming existential crisis to rejoin the growth path necessarily becomes a priority. www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Story by: Ashish Bhatia

Cover Story

Self-reliant MSME

VG Ramakrishnan, Managing Director and Partner, Avanteum Advisors LLP

AUTO COMPONENTS INDIA n SEPTEMBER 2020

The building blocks

The need of the hour is to continue to adapt to a dynamic set of scenarios and tread with cautious optimism. It is an apt time to go beyond traditional wisdom. Averred VG Ramakrishnan, Managing Director and Partner, Avanteum Advisors LLP, “Growth is a direct outcome of enterprises realising the role of self in overcoming challenges first.” “It is a good starting point over increasingly depending on government intervention,” he asserts. The task, according to Ramakrishnan, is cut out; survival is vital for the next two years. With cashflow a real issue, to avoid a negative impact on the supply chain, he opined, Original Equipment Manufacturers (OEMs) must play their part especially in case of tier 2 and tier 3 suppliers. After all, supply revenue scale to OEMs in 2019-20 according to Auto Components Manufacture Association (ACMA) stood at USD 40.5 billion. With India expected to play a significant role in global supply chains, suppliers, beginning with the phased unlock strategy, are rebuilding supply chains with a focus on attaining significantly higher localisation levels.

Key supplier expectations and considerations

Alok Agarwal, Head Purchasing and Strategic sourcing – India and Southeast Asia, Magna Powertrain highlighted key supplier expectations and considerations. He urged suppliers www.autocomponentsindia.com

The Government of India (GoI) wants to make India Atmanirbhar (self-reliant). For it, it is banking upon the MSME sector. Acknowledging the sector’s contribution, Nitin Gadkari, Minister of Road, Transport and Highways, and MSME recently stated the government’s five-year vision. “Over the next five years, we will increase MSME exports from 48 per cent to 60 per cent. It will create five crore jobs.” The groundwork for realising this ambition began through a string of announcements believed to have the potential to revive the ailing sector. Based on five pillars: economy, infrastructure, system, demography and demand, the GoI initially set the ball rolling with its ‘Economic Package’. Collateral-free automatic loans worth rupees three lakh crores with 100 per cent credit guarantee cover to banks and Non-Banking Financial Corporations (NBFC), for a four-year tenure and with a 12-month moratorium on principal repayment was made available till October 31, 2020. Through a subordinate debt provision, Finance Minister, Nirmal Sitharaman announced a subordinate debt provision infusing Rs.20,000 crore liquidity in stressed MSME (functioning MSME including stressed and NPAs eligible). The GoI will also provide support of Rs.4000 crore to Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). CGTMSE will inturn provide partial credit guarantee support to banks up to 65 per cent. Promoters of the MSME will be given debt by banks to invest as equity in the unit. Investment and turnover limits defining MSME have upgraded to address a long pending demand put forth by the stakeholders of the industry. Under the revised MSME classification, the distinction between manufacturing and service sector no longer exists. The composite criteria of investment and annual turnover for manufacturing and services have changed. The requirements for Micro and services enterprise has expanded to rupees one crore and a turnover of up to rupees five crores. For small enterprises, the new limit is an investment of up to Rs.10 crore and turnover of up to Rs.50 crore. For Medium enterprises, the limit of investment is Rs.20 crore with a turnover of up to Rs.100 crore. Aimed at improving growth potential and viability via equity funding, GoI announced Funds of Fund (FoF) with a corpus of Rs.10,000 crore. To be operated through a Mother Fund and few daughter funds, the fund structure will help leverage Rs.50,000 crore of funds at daughter funds level. It will encourage MSMEs to get listed. In another move, global tenders up to Rs.200 crore have lost eligibility. The necessary amendments of ‘General Financial Rules’ have been affected. The Confederation of Indian Industry announced the ‘Money Mobility Week’ for financial institutions and MSME between August 25-29’2020 with a loan application window of August 10 to September 10’2020. The GoI is also looking at the feasibility of setting up a dedicated institution to finance manufacturing activity. In other benefits, RBI in a recent announcement has allowed lenders to extend a one-time debt recast.

Cover Story

The World Bank Booster

to be meet regulations, address high volatility in volume forecasts with SOPs. He also called upon suppliers for incorporating flexibility in development and production besides ensuring short time to market and meeting high capital expenditure requirements. Among key considerations are increasing knowledge and exposure to global product requirements and collaboration with overseas companies to increase technical know-how. Agarwal urged companies to go beyond casting, forging and sheet metal business to produce technology-driven systems over components. Establishing overseas sales representative offices, improving operations and project management capabilities and building trust and relationships with customers were the others. Anand P. Srivastava, GM, Direct Credit Vertical at Small Industries Development Bank of India urged banks not to be risk aversed and come forward willingly supporting the MSME in their endeavour.

Rejoining growth path

There is a unanimous consensus on MSME staging a recovery first and pursuing growth after that. Piyush

Srivastava, Additional Development Commissioner, MSME, Government of India, speaking at the 7th MSME summit, expressed confidence in the industry emerging strongly in the aftermath of Covid-19. Drawing attention to MSME constituting 70 per cent of the auto components industry, stated Srivastava, for growth, the industry in the near term will benefit from a China plus one strategy with one being the alternative sourcing destination. According to Rajat Bahl, Chief Ratings Officer at Brickwork Ratings, the enterprises could grow by turning to resilient product segments and geographies, attracting higher FDI, reduced dependence on China, a larger share in the replacement market and exports to newer geographies. Samir Sathe, EVP, Wadhwani Advantage and India Leader, Sahayata Programme, Wadhwani Foundation reasserted the need to contribute to the bottom line for sustainable growth. “MSME must ensure a growth-oriented balance sheet to avail the benefits extended. Net earnings must be the focus area going forward,” he mentioned. ACI

Samir Sathe, EVP, Wadhwani Advantage and India Leader, Sahayata Programme, Wadhwani Foundation.

Piyush Srivastava, Additional Development Commissioner, MSME, Government of India.

Rajat Bahl, Chief Ratings Officer at Brickwork Ratings.

www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

The World Bank and the Government of India recently signed a USD 750 mn agreement for the MSME Emergency Response Program to support the increased flow of finance into the hands of MSME, severely impacted by the COVID-19 crisis. The World Bank Group, including its private sector arm – the International Finance Corporation (IFC), will support the government’s initiatives to protect the MSME sector by unlocking liquidity, strengthening NBFCs and SFBs, and Enabling financial innovations. In a press statement, Junaid Ahmad, World Bank Country Director in India stated, “The MSME sector is central to India’s growth and job creation and will be key to the pace of India’s economic recovery, postCOVID-19.” He added that the immediate need is to ensure that MSMEs access the liquidity infused into the system by the government. Equally important is to strengthen the overall financing ecosystem for MSMEs.

Cover Story

Maruti Suzuki India:

Strengthening Sustainability Performance Maruti Suzuki India continues to strengthen its sustainability performance as the market leader in the passenger vehicle segment.

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Story by: Ashish Bhatia and Deepti Thore

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Cover Story

Kept under check

The company is working hard on keeping fixed costs under check. Explained Seth that the company worked hard to reduce costs and will continue to do so throughout the year. “In a harmonised manner, we have set targets for all the verticals. On the other side, the company is also working on material costs, aiming to rapidly localise the imported components,” he mentioned. It is striving to bring model costs down through model cost reduction programs. “We do recognise and realise the that in a crisis situation we need to be very alert and be very careful about both variable as well as fixed cost,” he added. On the strategy to stock inventory to deal with the eventuality of production bottlenecks, Rahul Bharti, Executive Vice President (Corporate and Government Affairs), Maruti Suzuki India Limited explained

Kenichi Ayukawa, Managing Director and Chief Executive Officer, Maruti Suzuki India Limited

Rahul Bharti, Executive Vice President (Corporate and Government Affairs), Maruti Suzuki India Limited

Ajay Seth, Chief Financial Officer, Maruti Suzuki India Limited

that the company is limited, both on the supply and demand front. To counter it, it is leveraging a vendor base spread over 46 districts over nine states. “At any given point, our strategy is to let the vendor keep producing the maximum and keep stocking. If the lockdown hits, the stocks and inventories will help,” he revealed.

Natural capital

In line with its strategy to reduce the impact of its products and services on the environment, MSIL, has banked on the sustainable use of natural resources and responsible waste, wastewater and emissions management practices. For instance, in 2019-20, in the XL6 and S-Presso, the proportion of materials recyclable

Photo credit : BW_Businessworld

RC Bhargava, Chairman, Maruti Suzuki India Limited

and recoverable through the International Material Data System (IMDS) was higher compared to a Wagon R in 2018-19. A total of 600 tier 1 supplier plants implemented ISO 14001 environment management systems compared to 565 in the same use case scenario. The company saved 1,248 million litres of water through dry-wash systems at the service workshops up from 656 million litres the previous year. It repeated the feat of recycling 100 per cent steel scrap. The company used 6.3 MWp of solar power in manufacturing vehicles up from 1.3 Mwp the year ago. Using the alternative fuel driven vehicles, the company is claimed to have saved 1.16 million MT CO2. In the shareholder message, RC Bhargava, Chairman, Maruti www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

he market leader in the passenger vehicle segment, in India, Maruti Suzuki India Ltd (MSIL) is no exception when it comes to the quarter (Q1FY2021) dampened by the Covid-19 crisis. Aiming to ramp up production and overcome the shortage of manpower, however, the company can draw solace from a strong core. Invested in an inclusive approach, the company is striving to emerge stronger and fitter. MSIL, according to Ajay Seth, Chief Financial Officer at the company is looking at the pandemic as an opportunity to review systems at partner dealers and vendors. Speaking at an investor conference call, stated Seth, “It will allow us to become more efficient and competitive.” Sticking to its tried and tested approach of reducing the impact of its products and services on the environment through a sustainable approach, the company registered a net sales of Rs.36,775 mn. It recorded a net loss of Rs.2,494 mn in the quarter. Notably, the losses, claimed Seth were partially offset by lower operating expenses.

Cover Story

Carport Style Photovoltaic Solar Power Plant

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Maruti Suzuki India Limited (MSIL) has commissioned a five-megawatt carport style photovoltaic solar power plant in Gurugram. The new solar power plant will enhance sustainable manufacturing performance of the facility harnessing abundantly available clean resources and implementing them back into the business operation according to Kenichi Ayukawa, Managing Director and CEO, Maruti Suzuki

Suzuki India Limited, committed to contributing to the improvement of the environment. Assuring a real-time monitoring of existing projects for water conservation, emission control and air quality monitoring on a real time basis, he shared other measures to reduce the carbon footprint. For instance, the company comissioned a 5 MW solar plant in Gurugram. In addition to a 1.3 MW solar plant in Manesar, the company added a new 20 MW solar project. The project is expected to be completed in the first half of 2021. The company according to the Chairman is in a good position to lead growth especially owing to the www.autocomponentsindia.com

India Ltd. Investing an estimated USD 200 million, MSIL aims to offset 5,390-tonne of CO2 emissions annually over the next 25 years with an annual power output of 7,010 MWh. Gathering experience from its first solar power plant of one megawatt at the Manesar facility in 2014 which (upgraded to 1.3 MW in 2018), the company has increased its total solar power capacity to 6.3 MW with this new project. Spread

strength drawn from Japan – Suzuki Toyota combine for critical areas of technology and development.

Business change

The crisis is expected to change business. States Kenichi Ayukawa, Managing Director and Chief Executive Officer, MSIL that a careful analysis of the changed world and hence the strategy, resources and the structure is needed. Acknowledging the support from Suzuki Motor Corporation (SMC), Ayukawa drew attention to the rich experience of many business cycles, major world events and evolution of the automobile industry across countries. Together

across 32,985 sq.m, this plant will meet the internal energy needs at the Gurugram facility by synchronising with the captive power plant. The power plant makes use of photovoltaic solar panels, which is a unique feature of this state-of-the-art plant. Also, workable as a roof for the newly constructed car parking area, these panels, while generating clean energy also double up as safety shields against the harsh climatic conditions.

with Toyota Tsuho Group, the company has also set up a vehicle dismantling and recycling joint venture with an initial capacity to dismantle 24,000 vehicles per month. A mechanised solid waste management facility has been set up in Manesar for converting organic waste to compost to align with the ‘Swatchh Bharat’ mission. Despite making all-round capital intensive efforts to drive recovery, the company enhanced its ability to endure crisis through prudence. “It is prudent to keep adequate cash reserves for a rainy day. It increases the ability of an organisation to endure crisis without making irreparable sacrifices,” he concluded. ACI

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Digital Platform Partners

Business Filing

Transforming Manufacturing o9 Solutions and operaize partner to transform manufacturing planning, scheduling and sequencing.

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Story by: Deven Lad allas based AI-powered integrated planning and operations platform provider ‘o9 solutions’ and Germany based Software-as-a-Service (SaaS) company ‘operaize’ GmBH have partnered. The two, join hands, to deliver an integrated solution aimed at transforming manufacturing, planning, scheduling and sequencing. Averred Chakri Gottemukkala, Chief Excutive Officer at o9 Solutions, “To drive higher RoI for our joint customers, o9 Solutions and operaize are integrating to transform the planning and execution of manufacturing, planning, scheduling and sequencing .” “The partnership will enable o9 customers to develop plans and cater to different time horizons across complex supply

(From Left) Sanjiv Sidhu, Chairman and Co-Founder and Chakri Gottemukkala, Cofounder, CEO, o9 solutions.

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chains,” he said. In line with the strategy, the o9 planning platform will offer the most advanced scheduling and sequencing solvers. Both o9 and operaize are cloud-based, AIpowered enterprise software providers. Known to solve complex issues for numerous Fortune 500 clients, o9’s clients span across industries in manufacturing. Solutions span forecasting demand and drive better decision making in sales and supply chain. o9 Solutions offers automated capabilities for both demand and operations planning in the automotive industry. In a recent partnership, the company partnered with Pirelli, counted among the world’s leading tyre manufacturers to deploy the nextgeneration o9 platform.

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Integrated planning

The integrated solution with connection to MES, IoT, LIMS systems, additionally brings a full overview of shop floor operations into one unique platform. This partnership will deliver concrete outcome pertaining to operating margin of the manufacturing companies. Alexander Kouril, Co-founder, and Managing Director, operaize, averred “The close partnership between o9 and operaize will allow global manufacturing clients to be offered entirely new forms of integrated planning. Most of our suppliers have adopted AI-based planning procedures and we have witnessed customers achieve increased efficiency,” he claimed. o9 offers Integrated Business Planning (IBP) solutions aimed at helping organisations to move from executive dash-boarding to collaborative, analytic insights-driven platform. It will aid the alignment of cross-functional plans, initiatives and resources to the changing market needs. The company also provides demand management solutions with a forecast capability. It will in turn optimise sales and margin performance of clients. Through digital supply chain solutions, complex supply chains can turn dramatically more responsive, cost-effective and reliable in turn meeting market needs.

o9 provides a single AI/MLenabled merchandising and supply chain platform. The platform provides end to end digital intelligence with the next-generation solutions for AI/ML forecasting, merchandise and financial planning, assortment planning, size and pack optimisation, integrated allocation and replenishment. The integrated platform enables boundary-less collaboration across all retail planning modules providing an end to end, connected planning experience to execute the strategic targets and help them trickle down to the channels, customers, locations, products and sizes. It can build and manage customer-centric merchandise financial plans and improve the alignment of strategic goals.

operaize Next-Gen AI Alexander Kouril, Co-founder, and Managing Director, operaize.

operaize focuses on an artificial intelligence platform. The solutions

offered are aimed at production and supply chain (operations). As innovators of Industry 4.0 with scientific breakthrough machine learning and AI algorithms to complex problems in production environments, the company specialises in solving complex manufacturing scheduling and sequencing challenges across industries. “Our next-gen AI proactively detects potential disruptions and autonomously and expediently determines solutions to manage the production chain,” claimed Kouril. Using AI-based methods, proactively, the faults, risks or failures are identified. It is followed up with suitable problem-solving strategy to negate any negative effects. The focus remains on leveraging data extremely quickly and to ensure quick and effective implementation. ACI www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

o9 IBP solution

Special Reads

New Challenges For Engine Sensors In Hybrid Powertrains Sensors in combustion engines face unique challenges in hybrid cars. Story by: Klaus Grambichler, Senior Application Engineer, Infineon Technologies Austria AG

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Klaus Grambichler, Senior Application Engineer, Infineon Technologies Austria AG.

odern crankshaft sensors must differentiate between intentional rotation while the engine is running and random crankshaft movements, such as those caused by vibrations during purely electric driving. This differentiation is the only way, for example, to ensure a smooth transition when switching between the combustion engine and electric motor. And only in this way can components such as the starter and the battery be dimensioned most cost-effectively. In this article, Infineon describes corresponding algorithms in the latest XENSIV™ crankshaft sensor. Car manufacturers across the globe are expanding their portfolio of drive systems. Even looking beyond the fuel cells and synthetic fuels of tomorrow, there is still a vast number of hybrid options spanning the gap between combustion engines and electric motors. These options range from stop-start combustion engines, where the motor shuts off for a few seconds at a red light and then does a cold start. The plug-in hybrids that can quickly drive 50 kilometres in all-electric mode before the combustion engine kicks in as the battery runs low. It could also be when the vehicle is travelling at high speed on a highway. Two different implementations of even the most modern stop-start systems have already reached the market. In one instance, the combustion engine starts again as if it had been still for an hour and not driven. The second solution monitors the movement of the engine as it comes to a stop. When the engine starts up, the car

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already knows the crankshaft position and the cylinder to be fired. If we look at the different positions where the starter-generator may be attached to the drive shaft or the points where the clutch connects different motors to the drive axle, we quickly see that the combustion crankshaft assembly options are virtually limitless.

Drive interplay as experienced by the driver

To maximise acceptance of new electric drive systems, manufacturers must win over former combustion enthusiasts with ease of operation and a predictable, smooth driving experience free of “nasty surprises”. A combustion engine can spring smoothly and almost imperceptibly into action – as already experienced at traffic lights or in traffic jams in start-stop mode. Here, the car must know the angle of the crankshaft at all times. If the vehicle stops for three minutes in a traffic jam, the crankshaft sensor can ignore a slight temperature drift or, ideally, compensate for it. During a 30-minute drive on rough roads with a crankshaft that is free to move when decoupled from traction wheels, however, the sensor could incorrectly count a slight shake or vibration of a tooth or, in the worst case, interpret these movements as a new, valid signal. For a combustion engine can seamlessly slip into action, the sensor mustn’t incorrectly count any of the teeth moving past it. It is imperative that the sensor does not miss any teeth, does not count any new teeth, and does not mistake the rotational direction. These criteria are broken down inside the crankshaft sensor as there is a magnet inside the sensor housing, and the teeth modulate

Special Reads Fig.1 Fig.2

Diagram of a sensor module

Diagram of a crankshaft coming to rest when the ignition is switched off

the field lines of this magnet as they spin past. As such, the fluctuations in magnetic field strengths determine the sensor’s performance. These are dependent on several factors, including the air gap between the sensor, rigger wheel and the temperature. This paper focuses primarily on the mechanical components that are relevant to the sensor’s performance. The XENSIV™ TLE4929C crankshaft sensor family from Infineon has various functionalities that help to achieve the goal mentioned above. The third generation of the sensor will come to the market soon. In addition to the already established stop-start algorithm and the algorithm for compensation of vibrations at a standstill, it features an entirely new hybrid algorithm.

The conventional stop-start algorithm

Fig.3 Rotational behaviour of the crankshaft during the direct start

engine. All it requires is a slightly larger starter battery and starter motor and alterations to the software in the controller. Figures 2 and 3 show the disengaged crankshaft comes to a stop when the ignition is off. It also shows the quickest possible way to start for an Otto engine when compressed air is still in the cylinder (known as a direct start).

Vibrations while stationary

Modern cars carry out a range of self-diagnostic checks as soon as the driver door opens. These checks reduce the amount of time it takes for a warning lamp to light up. From the moment the car door is opened to the time the car pulls away, there are other possibilities. The vehicle can be loaded, for example. Children are required to buckle up. As such, www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

The “smallest” solution for reducing fuel consumption involves switching off the engine. It is already widely deployed and available as a conventional stop-start algorithm. This function can correctly interpret shortstops in congested traffic or at red lights and can compensate for small temperature drifts. Magnets are subject to substantial temperature drifts, which can change the magnetic field by up to 40 per cent over the given temperature range. In the case of crankshafts with well-fitting bearings, the next most significant factor to impact sensor behaviour is electrical in the source. Number three in the lineup are the changes in the air gap between the trigger wheel on the crankshaft and the sensor module on the engine block. Ideally, the sensor remains fully calibrated, and when the combustion engine starts again, it can correctly output the position and rotational direction of the crankshaft as soon as the first tooth of the trigger wheel spins past. This functionality is independent of any modifications to the architecture of a combustion

Special Reads

Fig.4 The signal output of the crankshaft sensor when loading the car

it is entirely reasonable for the car to rock slightly while stationary. These slight movements travel through the drive wheels, transmission and clutch and cause the crankshaft trigger wheel to turn. In some unfortunate situations, this can result in the crankshaft sensor picking up a valid magnetic signal. The algorithm in the Infineon sensor deletes calibration data generated before the engine switches on. Suppose we take just a brief look at the full range of hybrid architectures. In that case, it quickly becomes apparent that this add-on function will help car manufacturers to identify and ignore any inaccurate calibration data. As figure 4 shows, we can draw several conclusions from the sensorâ&#x20AC;&#x2122;s output signals over time. Firstly, we can see that the activated sensor bars the nominal rotational speed. Consequently, the calibration data gathered up to the time of theoretical rotational speeds can be reset. Secondly, we see that this procedure repeats if the sensor does not identify a tooth for a brief period.

Hybrid algorithm AUTO COMPONENTS INDIA n SEPTEMBER 2020

A new function is quintessential for a plug-in hybrid

Fig.5 Signal output of the crankshaft sensor while driving in the hybrid module

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solution. To correctly identify the position of the crankshaft trigger wheel, an algorithm has been implemented in the sensor that detects slower, sub-nominal crankshaft rotation and, in conjunction with other monitoring functions, prevents incorrect calibrations. New calibration data is only accepted when the system is operating normally. This function enables every crankshaft vibration to be captured with the corresponding signals for the forward and backward movement without the crankshaft sensor incorrectly responding to supposed changes to the mechanical setup such as a shift in the air gap or some other mechanical misalignment. Collectively, the algorithms named here enable the movements of the crankshaft trigger wheel to be accurately observed and tracked. The engine control unit knows at all times which stroke each piston is on and the time before the next ignition (based on the crankshaft angle). If the algorithms are correctly aligned, the system will operate correctly, ensuring that the engine warning light stays off.

Improved crankshaft sensor enables other components to last longer.

As the crankshaft sensor always provides reliable information, the sizing of components required to restart the combustion engine can be reduced. The starter generator usually turns the crankshaft for several rotations until the detection of the home position of the crankshaft. The minimum rotational speed over several hundred rotations has been reached. With an advanced crankshaft sensor, the fuel can be injected and Fig.6 ignited in just half a rotation. Breakdown of position errors Starting the

engine in this way requires only a fraction of the battery energy needed for a cold start. Manufacturers can thus choose between a longer service life for the starter and battery, or size down and save costs and weight, which – in turn – translates into a slight drop in consumption. This design also enables a great driving experience as the combustion engine starts quickly and smoothly.

More precise switching points

Installed on the camshaft, the XENSIV™ TLE4929C can compensate for production and assembly tolerances on the supplier and manufacturer sides thanks to its programmable switching threshold. This ability means that this position sensor

improves angle accuracy both on the camshaft and the crankshaft. Systematic errors are compensated for by the engine control unit and are not included in the above list. They include signal propagation delays, which are already accounted for in the control unit’s timer. All of the components listed above result in a random error, which at best resolves itself but, at worst, can represent a massive fault. The sensors allow switching thresholds to meet the modernday requirements. The module manufacturer can do this at relatively low cost by individually calibrating the switching point of the module at the end of the production process. It can also be done on the dry engine itself at a slightly higher cost. The benefit for the car manufacturer

Overview of Infineon XENSIV™ crankshaft sensors: l l

TLE4929C-XAx - First-generation low-jitter, Hall-based crankshaft sensor. TLE4929C-XVA - The second generation includes several further crankshaft protocols (by number 14) and a time watchdog to overcome start-up vibrations. Also, this device is available with nickel plating for the first time. TLE4929C-XHA - The third-generation includes an additional dedicated hybrid watchdog and a new calibration feature to meet increased absolute phase accuracy requirements.

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here is that the calibration also compensates for their production tolerances. In contrast, the tier 1 supplier can only offset for the module; the OEM’s installation error doesn’t reduce.

Easy calibration procedure

At a mid-point in the switching threshold, suitable systems are used to measure the misalignment between the machining centre of the tooth and the actual electrical edge. After this, the systematic errors are subtracted, and the remaining offset is programed and permanently stored in the sensor as the programmable switching threshold. As shown in figure 6, this method can be used to eliminate nearly all sources of error and improve the overall accuracy from +/-0.6 degree camshaft to +/-0.1 degree camshaft.

Summary

The combustion engine has had its day. From 2020 to 2025, all major car manufacturers worldwide will develop and launch their last hybrid platforms. After this, even the last-generation of development engineers working on combustion engines and possibly also transmissions will have to find a new home in the emerging fields of the fuel cell, battery and electric drive technologies. The combustion engines developed today will be around for several decades to come. As such, it is vital that the technology used in these models is reliable, longlasting, and up to date. Luckily, the challenges that hybrid engines and, in particular, crankshaft and camshaft sensors face in these systems are already known and being successfully addressed by Infineon. ACI www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

The differential Hall sensors, by their very physical nature, only switch when the centerline of the tooth is in front of the sensor. Starting from the centerline of the tooth and moving out, the following tolerances are: l Mechanical tolerances on the tooth itself cause the magnetic centre to deviate from the mechanical centre l Mechanical assembly tolerances for the module on the engine block account for the most substantial deviation l Mechanical installation tolerances for the magnet and sensor in the module also have to be added l The installed magnets are not 100 per cent homogenous; nor are they magnetised at a perfect 90-degree angle l Finally, there are also electrical tolerances within certain limits that are attributable to the sensor manufacturer.

Special Reads

E-mobility:

A dream to pursue despite Covid-19 How persevering to ramp up electric mobility could be a catalyst for post-Covid recovery. ndiaâ&#x20AC;&#x2122;s extended Covid-19 lockdown has slowed down the economy, and recovery could take time. As the government chalks out revival strategies and makes crucial decisions of spending allocation, a thrust on electric mobility has the potential to catalyse recovery and growth. In recent years, India has emphasised the adoption of Electric Vehicles (EVs) with the government announcing incentives including the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II), and the industry gearing up for it. Developing an EV-centric ecosystem was estimated to have the potential to attract USD 20 billion of investment, create jobs, help India emerge as a manufacturing leader and substantially reduce dependence on energy imports. We need to remember that India spent USD 112 bn on crude oil imports between April 2019 and February 2020. The uptake of e-mobility could reduce transportation and logistics costs by over USD 22 bn annually by 2030. Above all, falling tailpipe emissions would undoubtedly be a welcome respite for Indiaâ&#x20AC;&#x2122;s choking cities.

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Story by: Suvojoy Sengupta and Brajesh Chhibber

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However, there is now a real possibility that e-mobility, which is at a nascent stage in India, may not reach critical mass in the aftermath of the economic slowdown. It could suffer from the lack of supportive regulations and also as finances get diverted to more immediate needs. We anticipate five significant headwinds, which could delay the transition in India by at least two to three years. E-mobility incentive schemes such as FAME II, with an approved outlay of Rs.10,000 crore, could be repurposed, impacting demand ramp-up. The automotive sector, already stressed because of low demand, would have limited appetite to invest in developing an EV product portfolio- the industry has already made substantial investments of around Rs.50,000 crore to migrate to BSVI and is facing massive cost and cash pressures. Building local EV supply chains and diversifying sourcing will need time as well as further investments. Shared-mobility segments, erstwhile expected to be early adopters for EVs, could struggle to grow, as physical distancing becomes the new norm. And finally, if oil prices continue to remain low (USD 30 to 40 bbl) and the benefits get passed on to consumers, the cost advantage of EVs becomes significantly smaller. These, among other challenges, could delay the evolution of critical technical and manufacturing capabilities in India. With uncertain demand, India would likely remain dependent on Lithium-ion battery imports and delay investments in cell or battery manufacturing, large-scale Gigafactories

or EV-charging infrastructure. India has missed out on globalscale manufacturing opportunities such as semiconductors and solar modules in the past. It’s crucial; the EV opportunity must not slip away. Various stakeholders could play a role in nurturing an ecosystem that keeps the EV dream alive. Expected end-users could tweak their plans to adopt EVs even while conforming to Covidrelated guidelines and social distancing norms. For example, shared-mobility companies could pivot their models towards electric two-wheelers or three-wheelers as this solves Covid-19-related socialdistancing requirements. Similarly, food delivery, courier companies and e-commerce players could opt for electric two-wheelers to massively compress their delivery cost structure. After all, the Total Cost of Ownership (TCO) for electric two-wheelers is 25 to 30 per cent lower than for traditional two-wheelers. The low TCO could help companies improve their cost margins. The government could consider accelerating EV ramp-up in segments which are on the cusp of adoption. For example, they could ensure regulatory support to electric

Special Reads Suvojoy Sengupta, Partner and a leader of Electric Power and Natural Gas Practice.

companies and the government will need to play a role if we are to keep the EV dream in top gear on the highway to an electric future. ACI ---------------------------------------Suvojoy Sengupta is a Partner and a leader of Electric Power and Natural Gas Practice. Brajesh Chhibber is a Partner and a leader of the Automotive Practice in the Delhi office of McKinsey & Company. -----------------------------------------The views expressed by the authors are their personal opinions and do not necessarily reflect the views of the ACI magazine.

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Brajesh Chhibber, Partner and a leader of the Automotive Practice in the Delhi office of McKinsey & Company.

two-wheeler taxis (required in select states). The government could also unlock the permit constraints for electric three-wheelers, introduce a scrappage policy that incentivises the adoption of e-vehicles, and offer targeted monetary support, especially for the higher daily usage cases. Vehicle manufacturers could work closely with end-users for purposebuilt vehicles (taxis, delivery, etc.) over the next few years, solving for specific use case challenges. This strategy could speed up EV adoption while controlling investment costs. Two and three-wheeler manufacturers could also take the lead to push electrification across global markets in these categories, meeting the demand for vehicles with lower TCO and attaining global scale in these categories. Supply-chain players could build global offerings, benefiting from two tailwinds – nascent EV supply chains offer scope to be a fast-mover, and there is a strong desire to diversify supply geographies. Continuing to shape an EV ecosystem could bring India crucial benefits – attracting muchneeded investment, adding jobs to the manufacturing sector, taking India’s manufacturing capabilities to the world, and also cutting down pollution. Both automobile

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Trending

Manufacturing Robotic Automation VDMA India and EAC jointly organised a webinar to highlight the opportunities in manufacturing robotic automation.

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robotic automation. The focus is to optimise in-house manufacturing resources and cut the dependence on external third-party vendors for such requirements. German Engineering Federation - VDMA India and EAC International Consulting tapped into this domain and set out to address manufacturer concerns around regaining productivity in their webinar. To develop a high degree of agility and resilience, manufacturing robotic automation was put forth as the need of the hour. Averred Rajesh Nath, Managing Director of VDMA India, â&#x20AC;&#x153;The

Image courtesy: Seimens

lobally, economies continue to reel under the Covid-19 infused degrowth. The world over, the supply and demand-side shocks have resulted in disruptions that continue to challenge production plans. Plant closures are known to have caused steep revenue losses for manufacturers. The lower manufacturing index has translated to a loss of jobs, especially for the contract employees. To overcome disruptions and volatility, manufacturers need to restore supply chains to pre-covid levels. Companies need to turn to manufacturing with the use of

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Story by: Deven Lad

Škoda Auto PHEV Battery production

need of an hour is to take gradual steps to enhance automation and generate a return on investment. Automation without a high capital investment.” “AI, machine learning and robotics will help manufacturers to produce quality products at a better cost,” he opined. Turning a catalyst to help the industry make the transition to automation with a higher degree of resilience, Nath projected the growth of Industrial automation at 10-12 per cent rate by 2022 to touch a market valuation of USD 3.1 billion by 2022.

Automation led recovery

Touching upon the as-is where is basis in the aftermath of the pandemic, Unmesh Lohite, Principal at EAC International Consulting drew attention to the current adoption rate of robotic automation in India. He highlighted the role of robotic automation in recovery, status quo, cost factors, challenges, adoption parameters, decision factors, application potential, growing penetration through R&A success stories. Using these as a benchmark, manufacturers must adopt new Standard Operating Procedures (SOP) for social distancing. Compliance of safety norms and preventive measures like

temperature checks, sanitisation, staggered-shifts and transport will be the initial set of challenges for manufacturing plants. Explained Lohite, “The Covid impact has led to a decline in the manufacturing output and a rise in operational challenges. Robotic automation deployment here emerges as a potential mitigation option.” He attributed the limited availability of raw materials due to logistics and supply chain disruptions to the partial or total shutdown of operations as a result of the government imposed lockdown measures. In April 2020 alone, for instance, degrowth of (-)16.2 per cent was registered.

Trending

Robotic automation solutions have the potential to mitigate the challenges faced by manufacturers. As businesses start to register a recovery gradually, they will play a critical role in enabling users to attain the new normal with the adoption and sophistication degree expected to improve with each passing recovery stage. Added Lohite, “In intelligent automation, we hope to see a rise in artificial intelligence, machine learning, Industrial Internet of Things (IIOT) and analytics-led intelligent automation. Lohite opined, manufacturers would increasingly resort to automation across processes like inter-process communication for a connected shop floor. Critical processes like quality, assembly, production would frequently come to terms with the growing prominence of robotics and image processing. The bottom line being the elimination of redundant and repetitive activities to compensate for the loss of workforce.

SWOT analysis

As per statistics, India is a developing market with only one per cent of global robotics installations. Growing at 21 per cent Compounded Average Growth Rate (CAGR), growth in robotic installations during 201218 was driven by automotive plant expansions and modernisation exercises that followed. While talking about crucial technologies, he added

(L to R top): Rajesh Nath, Managing Director of VDMA India, Krishna Bhojkar, Head Manufacturing Engineering Department, Volkswagen India, Unmesh Lohite, Principal, EAC International Consulting (L to R bottom):Gautam Rawal, Country Business Unit Head – Factory Automation, Siemens Ltd. and Krishnan R Iyer, COO, Schwing Stetter India

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AUTO COMPONENTS INDIA n SEPTEMBER 2020

Image Courtesy: Škoda Auto

Mitigation potential

Trending

about the possibility of technology in changing the global manufacturing scenario. Through ‘VW Academy’, for instance, the group is readying technology to ensure the internationalisation of technology. Using inhouse services more and more, the group is working on Industry 4.0 standards. It is additionally also benchmarking entities within the group to optimise costs and deconstruct the factory of the future. Testimony to it is the manufacturer optimising the paint shop, wherein the manual application of a base coat and the clear coat was automated. It will fetch the group a high rate of return on investments.

Simplifying automation

that variations in technique and usage demand have led to a wide range of solutions on the supply side and customised end-user requirements on the demand side. The challenges in adoption and implementation are compatibility issues, import dependence on parts and limited cybersecurity infrastructure. The new avenues will drive the shift to overall operational resilience and optimal human resources utilisation. Testimony to it is the body shop. It is growing at a high level with automation, for instance. More than 2000 robots are installed every year, and all significant robots manufacturers are present in India. At Skoda, for example, the automation levels are at an estimated 35 per cent level currently. New products are expected to enhance automation by another 45 per cent. With a total of 122 factories, Skoda builds approximately 45,000 cars per day. “Unfortunately we don’t know how bad the impact is and our numbers are still growing. It hasn’t flattened, and there are many unknowns, so the ROI levels are uncertain,” expressed Krishna Bhojkar, Head Manufacturing Engineering www.autocomponentsindia.com

Department at Volkswagen India. Raising questions on the sector in India and drawing attention to the volatility impacting decision making, Bhojkar believed that decision making remains a question mark, especially in case of the smaller original equipment manufacturers. Admitting that the ‘Make in India’ drive had the potential to help drive the adoption of new technologies, Bhojkar was optimistic

The enablers for automation are costeffective. With affordable equipment and supporting technologies, manufacturers are accessing sensors and actuators, vision systems, selfdiagnostics, connectivity and cloud and Industry 4.0. Of the opinion that the manufacturer needs simple and sufficient automation at the company, he stressed on the need for manufacturers to reduce lead times. “Typically, the OEs will be dependent on their sub-suppliers tier one, two and Image courtesy: Schwing Stetter

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Siemens has created the semantic robot library for seamless integration of robots.

Schwing Stetter concrete pump manufacturing facility in Sipcot Industrial Area, Cheyyar, Thiruvannamalai Dist.

Trending Image Courtesy: Škoda Auto

Concrete pump manufacturing facility.

Seamless Integration

Siemens has created the semantic robot library. Known to be ready to use solution, it is an enabler for the seamless integration of robots. It can help reduce lead times, reduce error, and save costs. It also facilitates remote maintenance. Explained Rawal, in an analysis by the company, the solution paved the way for a 15 per cent higher throughput, 30x time saved compared to a regular cycle and overcoming the lack of technical resources. In another instance, through software, clients can create a digital twin of their machine. It allows for validation, including that of the mechanical and electrical performance relative to the past such efforts. Without physically going into the shop floor, the client can conduct R&D at home, check all his machines and have a near to perfect model available. Once satisfied, it can go into physical production and

deployment. “The digital twin is a reality, and it addresses the first stage of the inspection. And if we adopt it today. I’m pretty sure, the time which we would require to design a process would reduce in many applications across industries, ” he stated.

Frugal and intelligent

The lack of workforce has disrupted supply chains. Krishnan R Iyer, COO, Schwing Stetter India drew attention to the weak parts availability. Advocating the use of frugal and intelligent automation, he explained the need for a real-

time performance-based system taking over from the other method of relying on the line supervisor. “In western countries, the workforce is expensive and is scarce. Automation would be an automatic choice.” In the context of India, where the workforce is cheap, available, and there is a higher unemployment rate, he admitted to the companies compelled to be socially responsible. “Automation needs to increase so that it does not pose a threat to the extent of threatening jobs but at the same time transform the entire value quotient,” he signed off. ACI

Concrete truck mixer manufacturing facility at Schwing Stetter

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AUTO COMPONENTS INDIA n SEPTEMBER 2020

three or the Micro Small and Medium Enterprises (MSME). The need of the hour being the entire industry to audit the supply chain cumulatively to pave the way for the survival as a whole,” he opined. Gautam Rawal, Country Business Unit Head – Factory Automation, Siemens Ltd. stressed on the need to prioritise troubleshooting, to understand key performance indicators to arrive at the real benefits.

Trending

Revitalising Asia-Pacific Businesses To help Asia-Pacific businesses revitalise growth strategy in the environment and sustainable markets, Frost & Sullivan put forth next-generation solutions and resilient business models. Story by: Deepti Thore Photos by: Sourabh Botre, Flaticon.com and Frost & Sullivan

AUTO COMPONENTS INDIA n SEPTEMBER 2020

ovid-19 has changed national priorities. Ironically, at a time when the global emissions have touched unprecedented lows, the respective governments have had to prioritise. Economy or climate change is the question many have had to deal with it. A global recession, the worst in decades, is looming large. The worst in decades. From New Delhi to Beijing, Air Quality Index (AQI) witnessed unprecedented

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improvement even if it were to be temporary with the economies looking to fast open up and move in the direction of the pre-Covid levels. The fight for climate change, it is feared, has taken a backseat. At this juncture, Frost & Sullivan’s webinar - ‘Revitalize Your Growth Strategy in Environment and Sustainability Markets in Asia-Pacific’ did just the right thing. Timed to perfection, it drew the fading attention

Trending Growth Pressures

The session drew attention to the factors responsible for industry growth pressures. It identified diminishing returns and rising operational costs. It also highlighted the evolving customer value chain. Tech-savvy customers and the emergence of alternative sales channels have given way to a prime example. The focus was on strained water-resources and growing waste generation — low recycling rates, especially in Asia-Pacific. Problemsolving companies will shape the future with their disruptive tech. Facing stiff competition from start-

ups, the well-established companies will continue to thrive on change.

Impact on automotive

Many automotive markets are severely hit and forced to change.

Importance of hygiene, for instance, has resulted in the growing popularity of sanitisers indirectly positively impacting chemical manufacturing. Ecommerce and digitisation have been rampant making up for the lag and unacceptance pre-Covid. It has also led to a renewed rise in plastic waste levels as an outcome of heightened packaging levels. Cautioned Leong, “Customers in the sustainability industry may not invest further in new technology beyond the basic requirement of water treatment and waste management. New budgets will be under pressure.” An audience poll to identify growth themes had more than 70 per cent participants vote in favour of nextgeneration technologies. Others backed governance and business models coming off age as growth contributors.

Growth contributors

Factors creating pressure on growth

Service delivery is crucial for sustainability markets. It is severely stressed. Claimed Leong, tenders related to environment services were postponed, delayed or even

cancelled. New investments in this industry were also affected. Citing optimism against all the odds, he highlighted focus areas like ongoing efforts to improve access to clean water for the industry. He also

touched upon the renewed focus on environmental technologies to promote the circular economy. Admitting that the opportunity was not new, he, however, put in perspective the rising importance of resource management and monetisation. Re-evaluating environment management strategies to address floods and droughts also found a mention. “It is important to understand that climate issues do not halt because of a pandemic. Solutions which benefit water management and waste management for business security and socioeconomic security will become ever more important and is the way to kickstart economies again,” he exclaimed.

Water utilities for economic reactivation

The utility of water is associated with services required by a heat process, for instance, the use of water in steam production, cooling, rinsing for Cleaning In Place (CIP). CIP, in effect, is using water with a mix of heat and chemicals to clean machinery sans any dismantling. www.autocomponentsindia.com

AUTO COMPONENTS INDIA n SEPTEMBER 2020

‘spans’ back to environment and sustainability markets. Calling for the need to build a business pipeline, address security concerns related to water supply and quality, waste management, and indoor air quality, the webinar emphasised on building a circular economy in the future where raw materials, components and products retain their value to the maximum possible. According to Melvin Leong, Director- Sustainability program and Industrial Practice, Frost & Sullivan, it is quintessential to use advanced and innovative solutions backed by resilient business models. The session touched upon critical topics like environment growth opportunities, challenges, immediate intervention areas and technologies. The meeting was an attempt to direct organisations looking rebound and emerge stronger from the pandemic.

Trending AUTO COMPONENTS INDIA n SEPTEMBER 2020

irrigation in remote areas, and Japan will look to strengthen its flood control system due to excessive rains. For Korea, overall network improvement will be the focus. Stating that the AsiaPacific region will continue to refurbish or expand its various water infrastructures treatment to distribution, Leong was quick to point out how going forward the goals of governments would be reoriented to support economic reactivation. Until 2021, Water utilities market in billions refurbishment, (All the figures are rounded and 2019 is the base year) desalination For example, high-pressure water plus membrane, pipework, leak cleaning systems are known to detection and metering, and smart degrease, de-oil or remove residues services will present excellent in automotive plants. â&#x20AC;&#x153;By the end opportunities. Known to be out in of 2020, we are expecting healthy the public domain for the past three growth in the capex expenditure by years, these have gained newfound around 8.2 per cent,â&#x20AC;? opined Leong. relevance. As per a statistic, countries with In the refurbishment area, more than 10 per cent growth in 2020 would be Australia, Philippines, Indonesia and India. Countries with growth between five to 10 per cent would be China, Vietnam and Thailand. Singapore will expand its wastewater infrastructure and improve the sustainability of water resources. Australia, on the other hand, will continue to improve www.autocomponentsindia.com

utilities need to focus on plant treatment improvement, especially in crucial equipment like pumps and motors, filters and chemical building systems. Equipment efficiency will be a vital priority for facility operational improvement, said Leong. With treatment capacity expansion post-2020 on the horizon, market players should look out for pre-planning design and new tender activities planned to take shape by the end of 2020. New treatment construction, it is likely, would be deferred until 2021. Priority being to close the operational and business gap in current water treatment systems. The opportunity also lies in the realm of desalination, especially in Australia and parts of India and China. Pipework, one of most underrated areas in the water utility market, stated Leong would pave the way for pipe installation using advanced technologies and nonsteel materials. On the consumer end, lead-detection and metering could gain prominence. Smart water meter deployment and collaborations with digital providers would be essential.

Waste management

Waste management segment can be called an outlier. Recycling practices, as well as waste collection and treatment measures, have only improved in the wake of efforts to prevent contagion spread and enhancing environmental hygiene. Looking at past trends, one will agree that waste trends have translated into excellent business

Trending Growth opportunities in waste management

design for sustainable packaging and collaborative recycling. No wonder, startups in India, China, Korea and Japan are already focusing on it. With China’s e-waste alone valued at an estimated 12 billion dollars in 2020, its upgradation to improve recovery rates assume significance. India and Southeast Asia could be the next hotspots for e-waste in 2020-21. Smart supply chains will increasingly depend on advanced technologies like Blockchain. It has found relevance in the material recycling industry. With Asia known to account for the highest global packaging materials, at about 40 per cent, startups have sensed an opportunity. In early 2019, the alliance to end plastic waste involves companies like Reliance and BASF in India. They could invest USD 1.5 billion between 2020-24. Post Covid-19, it could drop down to USD one billion. Opportunities in recycling especially in special economic zones, is a possibility.

Government reforms

For integrated sustainability, the government needs to incorporate economics, social and environmental aspects in climatic management. Frost & Sullivan predictions for 2020 and beyond expect water sources to be at risk. New software for providing water accounting to arrive at better water management decisions for industrial use is a promising domain. “The need of the hour is a collaboration of government bodies, private insurance firms, NGOs and related industry experts in the environmental markets,” he concluded. ACI

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AUTO COMPONENTS INDIA n SEPTEMBER 2020

opportunities. Take the example of China. It produced 75 million tonnes of plastic waste in 2019 — the expected rise is to 78 million tonnes in 2020. The country plans to add ten recycling plants to the existing count of 138. In India, 15 million tonnes of plastic waste was reported in 2019 and is in all probability likely to register 17 million tonne levels in 2020. Notably, the EPR scheme introduced to support waste management was erstwhile unsuccessful due to the highly informal nature. In terms of opportunities, one can take a cue from the Malaysian government’s mechanism of issuing a proof permit for plastic imports. “This provision of importing waste in Malaysia, can bring global opportunities to the recycling market globally,” opined Leong. He cited the landfill model as the largest in Asia pacific with recycling coming close at second. Recycling could well overtake landfill volumes. In terms of revenue generation, recycling stays the most significant contributor to plastic waste management streams and will most likely hold the fort until 2030. In 2019, an estimated 50 cities invested in waste management and recycling. Shortage of waste materials like PET is also a rising trend. To sum up, the five major focus areas will be IOT, upgraded recycling technology, smart supply chains, innovative

International

Circular Economy Plastic Production Lanxess AG deploys the circular economy for plastic production with a new product range.

o turn its plastic production sustainable, Lanxess AG has turned to circular economy based strategy. The objective is to ensure that throughout the production cycle, the raw materials used, lose the least value possible. The company is banking on the new ‘Durethan ECO polyamide’ product range to attain this goal. An alternative to the traditional linear economy, the circular economy improves competitiveness and resource efficiency. Future design, digital technology, preservation and extension of the

AUTO COMPONENTS INDIA n SEPTEMBER 2020

Story by: Deepti Thore Photos by : Lanxess AG

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produce, prioritisation of regenerative resources are few of the key elements to it. To make the quantum leap, Lanxess is using recycled raw materials in the production of its thermoplastic compounds and composites. Durethan ECOBKV30H2.0, ECOBKV35H2.0 and ECOBKV60XF are the most recent products developed in line with this strategy. “ECOBKV60XF, for example, offers exceptional strength and rigidity for the manufacture of structural components such as front end, pedal

Mass balance method

An initiative launched by the nonprofit organisation Ellen MacArthur Foundation, the mass balance method

Waste glass fibres

The HPM unit of Lanxess is looking at saving energy and lowering CO2 emissions by capitalising on waste glass fibres as the sustainable raw

International

is used by countries globally to incorporate recycled raw materials into production with the petrochemical or mineral feedstocks. It is arithmetically allocated to the end product. Plastic producers conduct chemical recycling of post-industrial and post-consumer waste. Among key advantages is the ability to replicate characteristics of the finished product. The polyamide compound reinforced with recycled waste glass fibres is identical to the virgin material. In another example, an injection moulder can process the compound using existing facilities just like the conventional product enjoys the sustainability benefits of the certified product.

material. The waste glass melts at lower temperatures than the raw materials used in manufacturing glass fibres.

Future development

Ambitious about gradually increasing the count of ECO product types certified under the mass balance method, Lanxessâ&#x20AC;&#x2122;s HPM wants to launch a new polyamide six with a glass fibre content of 30 per cent. Caprolactam required to produce this environmentally friendly polyamide 6 is based on a selection of petrochemical raw materials. ACI

Image Source : Lanxess

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AUTO COMPONENTS INDIA n SEPTEMBER 2020

bearing brackets and A-, B- and C-pillars, as well as lightweight battery trays for electric vehicles,â&#x20AC;? states Dr Guenter Margraf, Global Product Manager- HighPerformance Materials (HPM) Business Unit, Lanxess. Known to possess material properties identical to the conventional virgin quality material, the new product range makes use of glass fibres sourced from waste glass. Recycled fibres manufactured from waste glass constitute 30 per cent, 35 per cent and 60 per cent weight respectively in ECOBKV30H2.0, ECOBKV35H2.0 and ECOBKV60XF. Notably, the glass is sourced from the waste leftovers of glass fibre production (post-industrial recycling). In another instance, Ecoloop certified by Ecocycle, under ISO 14021:2016 makes use of a high percentage of recycled material. This results in low greenhouse emissions. Using the mass balance method, Ecocycle examines the quantum of recycled material used in each compound along with the long-term potential of the waste stream.

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