AUTO COMPONENTS INDIA SEPTEMBER 2021 by Next Gen Publishing Pvt Ltd

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www.autocomponentsindia.com Vol 8 Issue 07

September 2021

THE EXPLICIT MANUFACTURING GOALS COMPONENTS INDIA

VOICE OF THE AUTOMOTIVE SUPPLIERS

MOBILISED

cockpiT domain conTrollerS

EXCLUSIVE

SUSTAINABLE GROWTH

Building a green value chain

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unprivileged eyeS on downSTream aluminium @ACImagazine

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preparing For The Third wave

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Bracing For The rollouT oF Scrappage policy

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Cover Story The Explicit Manufacturing Goals

September 2021

Safeguarding The Bottom Line

Auto component manufacturers continue to strive for business development and continuity. Ashish Bhatia draws attention to the explicit manufacturing goals for long-term stability.

Pricol Limited is banking on evolution for sustainable growth. Prateek Pardeshi looks at how the manufacturer is safeguarding the bottom line.

06 Newscast

16 Mobilised

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The task is cut out for MSME Motherson Group joins UN Global Compact Ambitious 2030 target for exports The incorporation of Minda Infac Varroc Engineering and Candera GmbH MoU New R&D Head at Continental Automotive Maxxis Tyres performance range Jindal Aluminium launches SAHAY KPIT joins autonomous vehicle computing consortium Milestone in semiconductor R&D Defence India Startup Challenge 5.0 BHEL solar EV charging station First public EV charging station for Mumbai Mercedes Benz India partners DSEU for advanced diploma New Sterlite Copper SDC

12 Upfront

Jayakumar G, Group President India, Valeo India Pvt. Ltd.

l Visteon Cockpit Domain Controllers l Color Compact Spectrophotometer

20 Business Filing Anand Mando eMobility

29 Special Reads

l Unprivileged Eyes On Downstream Aluminium

l Preparing For The Third Wave

34 Trending

Bracing For The Rollout Of Scrappage Policy

38 International

Self Optimised Manufacture

40 #Trendsmap

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With Annoying Frequency For Good

AUTO COMPONENTS INDIA

608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Tel +91 9321546598, Email us at a.bhatia@nextgenpublishing.net Executive Editor Ashish Bhatia Editorial Advisory Board H. S. Billimoria, Aspi Bhathena Head - Design & Production Ravi Parmar Correspondent: Deepti Thore Asst Art Director Ajit Manjrekar Production Supervisor Dinesh Bhajnik Publisher Marzban Jasoomani Associate Publisher & 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 9321546598 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. 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India, Mumbai -400013. Tel +91 22 9321546598 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 Cenetoph Elite, No.5, Cenetoph 1st street, Teynampet, Chennai - 600018, India Tel +91 044 421-08-421/044 421-75-421 Devendra Mehta - Mob No.- 09714913234 Ahmedabad S.No.261/G.L.R.No.5, East Street,Camp Pune - 411001.

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The investments made today to turn agile and flexible, and in turn holistically efficient can help safeguard the future.

e will be hearing ‘Agility’ and ‘Flexibility’ with annoying frequency in days and months to come. In the manufacturing parlance, the two strong pillars are capable of carrying the burden of expectations from the automotive components industry. Crucial for survival, revival and growth in equal measures, the two, together, can drive the industry’s quest for excellence, business continuity and development. The September issue is all bout highlighting such efforts being made on ground zero. The featured companies are a testimony to industry peers determined to join the bandwagon, in a mass movement. Ground-up evaluation and efforts hint that long-term sustainability is attainable! The recent disruptions in the supply chain have forced a rethink on concepts like ‘Just-In-Time’. From sourcing parts days before or at the eleventh hour ahead of utilising them, manufacturers globally are incorporating alternative efficiencies. What if the designated partner suppliers or a tier2s are restricted by an unprecedented event? It has led to stockpiling, looked at as an irrational move, take on a whole new dimension. Manufacturers have realised it as a prerequisite to prepare for exigencies. The investments made today to turn agile and flexible, and in turn holistically efficient can help safeguard the future. Ashish Bhatia Executive Editor | a.bhatia@nextgenpublishing.net /autocomponentsindiaofficial /autocomponentsindia ACI Mag

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., 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.. Published by Marzban Jasoomani on behalf of Next Gen Publishing Pvt. Ltd., 608, Trade World, 6th floor, C wing, 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., 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.

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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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The task is cut out for MSME The Ministry of Micro Medium and Small Enterprises (MSME) has set a target of accounting for 50 per cent of the Gross Domestic Product (GDP) by 2025. As India gears to become a USD five trillion economy, the focus must shift on productivity overproduction as per Union Minister Jitendra Singh. “Micro, Small, and Medium Enterprises (MSME) will be the foundation for bigger industries in the country,” averred the minister at the 7th India International MSME Expo Summits 2021. “With around 36.1 million units, MSMEs contribute around 6.11 per cent of the manufacturing GDP and 24.63 per cent of the GDP from service activities. Moreover, it is the secondlargest employment generating sector after agriculture as it employs around 120 million persons in India,” he explained. Citing the heavy dependence of new business enterprises on scientific technology, the minister called for the need to adopt a scientific temper and scientific attitude deemed crucial for

the industry to realise their optimum utilisation in contemporary India. The scientific community must share successful research and development outcomes with the industry and corporate houses, he concluded. The share of the MSME manufacturing in All India manufacturing gross value output during the year 2018-19 and 2019-20 are known to be 36.9 per cent and 36.9 per cent respectively. As per a statistic of the Directorate General of Commercial Intelligence and Statistics, the share of export of specified MSME related products to all India exports during 2019-20 and 2020-21 was 49.8 per cent and 49.5 per cent respectively.

Motherson Group joins UN Global Compact Motherson Group has joined the United Nations Global Compact (UN Global Compact). As part of the strategic initiative to support global companies with the development, implementation, and disclosure of responsible business practices, Motherson is looking to build on its commitment to its Environmental, Social and Governance (ESG) program as a long term strategy. Averred Vivek Chaand Sehgal, Chairman, Motherson Group, “To set new standards in good corporate citizenship has been part of our mission since 1995. Motherson is proud to join the U.N. Global Compact and as a signatory,

we will be integrating the principles of the Compact into our business practices, to create mindfulness in the world that we all want.” Aimed at living up to the expectations of all the stakeholders like employees, customers, communities, and investors, the company will look at ways of improving the environment, cultivating greater social inclusion and embodying the highest standards of governance. The UN Global Compact requires companies to align their culture, strategies, and operations with its ten core principles in the areas of human rights, labour standards, environment, and anti-corruption.

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Ambitious 2030 target for exports

The Minister of Commerce & Industry, Piyush Goyal, asked exporters to rise to the ambitious challenge of the USD 400 billion export target for 2021-22. He asked exporters to target USD two trillion exports by 2030. In line with the vision, “Local goes Global: Make in India for the World”, the minister said, “The target has been generated through a bottomup and consultative approach, wherein specific targets for each country, product, Export Promotion Council and foreign mission has been set.” Calling for the need to maintain the export momentum for the next eight months, setting a USD 34 billion exports per month target to achieve the goal, the minister expressed that while the goal is ambitious, it could be realised with the EPCs and their members working in unison. The Minister also asked the export community to target USD two trillion exports by the year 2030, comprising USD one trillion merchandise exports and USD one trillion of services exports. He also announced the setting up of two separate divisions in the Commerce Ministry focused on the services sector, to achieve the target. New FTAs are slated for an early conclusion, he informed. The industry was directed to study both domestic and international quality standards and work towards aligning with the standards. “Let us accept and adopt quality standards voluntarily and happily and build our industries to meet global quality standards,” he stated. Semiconductors, he opined, would occupy a prominent role in the industrial landscape. WWW.AUTOCOMPONENTSINDIA.COM

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The incorporation of Minda Infac

To comply with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Minda Corporation Ltd., announced the Joint Venture (JV) Agreement signed with Infac Elecs Co Ltd., the Republic of Korea on June 08, 2021. A new JV company Minda Infac Pvt. Ltd. was incorporated on August 10, 2021, in which 51 per cent would be held by Minda Corporation Ltd. and 49 per cent by Infac Elecs Co Ltd., Republic of Korea. The new JV company will engage inter-alia in the business of design, develop, manufacture, install, assemble, produce, conceptualise, test, service, distribute, import or export,

market, to act as principals, dealers, agents, sub-agents, promote, franchise, offer and sell (either by wholesale or retail) the automotive combi shark fin antenna, combi pole antenna, micro pole antenna, LF antenna and switch assembly. It also extends to GPS antenna and other advanced antenna products including all other antenna accessories and fittings.

Varroc Engineering and Candera GmbH MoU

Varroc Engineering Ltd. (Varroc), has signed a Memorandum of Understanding (MoU) with Candera GmbH. A strategic association to integrate the Human Machine Interface (HMI) technology in Varroc’s Thin-FilmTransistor (TFT) Instrument Cluster. Varroc will develop the hardware and base software of the product, while Candera will provide the software solution for the HMI. The MoU is expected to enable both the companies to respond to automotive application opportunities in India and the global markets with shorter lead time and cost-optimised solutions. Arjun Jain, Wholetime Director and the President - Electrical and Electronics WWW.AUTOCOMPONENTSINDIA.COM

Business Unit at Varroc, said “At Varroc, we look to drive growth leveraging sustainable automotive trends such as the desire to be greener, safer, smarter, and more connected. We are delighted to partner with Candera to comprehensively build out our capability set to deliver next-generation TFT instrument clusters that meet our customers evolving technology needs.” Reinhard Füricht, CEO of Candera added, “This MoU now takes our partnership to the next level and we’re looking forward to supporting our mutual, worldwide customers to be successful in their business by creating powerful HMI solutions together with Varroc’s TFT clusters.”

New R&D Head at Continental Automotive Continental Automotive India has appointed Latha Chemrakalam as the new Head - R&D Technical Center India. To succeed Alexander Klotz, credited for TCI scaling up to become one of the largest engineering centres for Continental, globally, Chemrakalam’s task is cut out. She is expected to be instrumental in leading TCI to the next level of growth and innovation, including on fronts like infrastructural expansion, headcount growth, and expansion of engineering competence for both global and local markets. As stated by Juergen Heim, Senior Vice President and Head of Holistic Engineering & Technology Locations Management, in a company release, “I am glad to welcome Latha as the new head of TCI and also extend my thanks to Alex, who oversaw many successful projects, expansions, and milestones. The race for the future mobility ecosystem has only just begun, and as the R&D arm for Continental, our Holistic Engineering & Technology unit and key centres like TCI have the responsibility for future technologies and solutions for the automotive sector. We continue to invest in R&D and our growth in India.” Prashanth Doreswamy, Country Head, Continental India and Managing Director, Continental Automotive Components (India) Pvt Ltd., added, “ I am confident that Latha’s leadership, experience, and expertise will ensure TCI continues to grow in competence, innovation potential and capacity, touching new milestones. Additionally, Latha is our first woman head of TCI, and a welcome addition to our women executive leadership pool.” Chembrakalam has nearly three decades of experience and has held many leadership roles in an illustrious career. Before Continental, Latha was the Vice President at Robert Bosch Engineering and Business Solutions Pvt. Ltd, where she was responsible for the complete powertrain and electrification area. Her other notable stints include a stint with Siemens Information Systems Ltd, where she is known to have incubated the automotive business in India after her stint in Siemens Automotives, Germany. She was later responsible for business development in South Africa, handling embedded systems, BFSI, Security solutions, and IT services. SEPTEMBER 2021 n AUTO COMPONENTS INDIA

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Maxxis Tyres performance range Maxxis India has introduced an exclusive range of tyres for the sports segment, Maxxis M6311/ M6312 under the MAXXCEED series. The M6311/ M6312 tubeless tyres are claimed to provide significant control while riding along with higher resistance. The tyres are currently available for the aftermarket across leading two-wheeler line-ups like for the Bajaj Pulsar (150,160, 180, 200, 220), TVS Apache (160, 180, 200), Yamaha R15, Yamaha FZ, Honda Hornet amongst others. More offspring are expected from the series in the near term. The M6311/M6312 is supported by the five plus one unconditional warranty with Maxxis two-wheeler tyres. This unconditional warranty is claimed to be a no-questions-asked offer that applies to all unserviceable and unrepairable tyres. The tyres are available pan India across all Maxxis dealer outlets.

Jindal Aluminium launches SAHAY

Aluminium extrusion company Jindal Aluminium Ltd. launched ‘SAHAY’ a psychological wellness program to address the emotional and mental well-being needs of 7000 people including employees and their families. SAHAY is claimed to provide safe and approving space with a specialist to discuss psychological conditions related to anxiety, stress, or emotional difficulties. Of the opinion that a psychologist can better address any emotional and mental well-being issues that employees or their family members may be facing, it will enable people to have and give better life experiences. The free consultation facility has been made available two days a week with prior appointments. As part of SAHAY, Jindal Aluminium plans to hold sessions on mindfulness, dealing with stressful conditions, parenting tips, being considerate and caring for the aged, mental and emotional well-being for its employees in the days to come.

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KPIT joins autonomous vehicle computing consortium Software-development company KPIT integrated with the automotive and mobility industry has joined the Automotive Vehicle Computing Consortium (AVCC). AVCC is a global collaboration of automotive and technology industry leaders focused on automated and assisted driving compute solutions. The way autonomous driving solutions are developed is changing rapidly both from the hardware and software perspectives. AVCC is helping bring organisations deeply invested in this space to discuss and find solutions for the future. KPIT’s expertise and insights from Advanced Driver Assistance Systems (ADAS) and Autonomous Driving (AD) development for more than a decade with experience on 50 plus vehicle production programs are expected to be a valuable addition for the consortium on software architectures, platforms, and components. With this, KPIT joins leading OEMs, tier1s, and semiconductor companies, such as General Motors, Toyota, Subaru, Veoneer, ARM, Bosch, NXP, Renesas already onboard.

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Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India

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Milestone in semiconductor R&D As the automotive world grapples with the semiconductor chip shortage, a new breakthrough has been made on the manufacturing front. With foundries known to mass-produce these chips, the need for manufacture standardisation was felt. Any variations are known to produce tiny offsets which are revealed on testing. These tiny offsets render a large fraction of the chips useless. In a breakthrough finding, the tiny offset may be stored in memory once and applied to the output retrospectively to perfect such imperfect chips. It is expected to make expensive custom chip design redundant, and help stakeholders save on time and expenses. “The partnership between IIT Bombay and SCL to establish this memory technology for the first time demonstrates the augmented potential for semiconductor

research in the country”, opined Prof. K. VijayRaghavan, Principal Scientific Advisor (PSA) to the Government of India. The team at IIT Bombay was supported by the Department of Science and Technology’s Intensification of Research in High Priority Area (IRHPA). Aspects of the work were funded by Ministry of Electronics and Information Technology (MeiTY) and Department of Science and Technology (DST).

Defence India Startup Challenge 5.0

Defence Minister Rajnath Singh launched the fifth edition of the Defence India Startup Challenge (DISC). DISC 5.0 targets self-reliance, fostering innovation and technology development in the defence and aerospace sectors. Falling under Innovations for Defence Excellence - Defence Innovation Organisation (iDEX-DIO), the official statement mentioned thirty-five problem statements. This is further broken down to 13 from the Services and 22 from Defence Public Sector Undertakings (DPSUs). The challenge extends to situational awareness, augmented reality, artificial intelligence, aircraft-trainer, non-lethal devices, 5G network, underwater domain awareness, drone swarms and data capturing. “A platform like iDEX provides a foundation for innovation, research and development to the industry. Initiatives like iDEX form a link between our youth, academia, R&D, start-ups and the armed forces,” expressed the minister. The previous edition of the DISC hosted over eighty startups, Micro, Small and Medium Enterprises (MSME) and individual innovators as winners in over forty technological areas.

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Nanoelectronics Network for Research and Applications (NNetRA) supports the memory application. DST-Advanced Manufacturing Technologies, and the Office of PSA for hardware security. The team at IIT Bombay partnered with IIT Delhi, SETS Chennai, and DRDO for hardware encryption. It is testimony to the development of standards, product design or IP development, and semiconductor manufacturing fast assuming significance for future developments. “The OTP memory technology adoption for trimming applications by the joint IIT Bombay SCL Chandigarh teams is a pioneering step in this direction. It will be a gamechanger by enabling secure memory and encryption hardware for the country,” concluded Dr V.K. Saraswat, Member, NITI Aayog.

BHEL solar EV charging station

As the penetration of emobility grows across automotive segments, the supporting infrastructure is also growing in parallel. The Delhi-Chandigarh highway has become the first EV friendly highway in the country with a network of Solar-based EV Charging stations (SEVCs) set up by Bharat Heavy Electricals (BHEL) under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAMEI) scheme of the Department of Heavy Industries. In a strategic development, BHEL has set up the charging station at Karna Lake resort which is the midpoint between the two cities. It is said to be equipped to cater to all EVs plying across the country and would draw power from the individual grid-connected rooftop solar power panels. The company is working on strengthening the charging network on this highway this year as setting up more stations at every 20-30 km interval is expected to instil more confidence among EV owners plying interstate. WWW.AUTOCOMPONENTSINDIA.COM

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First public EV charging station for Mumbai Building on the charging ecosystem in Mumbai, Brihanmumbai Municipal Corporation (BMC) has set up Mumbai’s first public EV charging station at the parking lot of Kohinoor Square, in Dadar West. Inaugurated by Aditya Thackeray, Minister of Tourism and Environment, Maharashtra, this EV charging station is known to have been developed as a public centre. To be operational 24x7, it has seven charging ports with four dedicated fast charging ports. As of now, BMC will scale up this project to extend to other pockets of the city and serve the growing population of EVs. “It is heartening to witness great efforts being put in from all key stakeholders to make Maharashtra EV friendly. We had announced our state’s EV policy about a month ago

and it is encouraging to see the active participation from all stakeholders to

realise this vision,” said the minister on the sidelines of the launch.

Mercedes Benz New Sterlite Copper SDC India partners DSEU for advanced diploma Mercedes-Benz India has signed a Memorandum of Understanding (MoU) with the Delhi Skill and Entrepreneurship University (DSEU) to provide a oneyear Advanced Diploma In Automotive Mechatronics (ADAM). In line with the ‘Skill India’ movement, the course will fulfill the requirement for superlative service in the automotive sector. Students can look forward to hands-on experience on the latest tools and equipment. First conducted since 2006 across government institutions in Pune, Aurangabad, New Delhi, Noida, Trivandrum, Bangalore, Ghaziabad and Bhubaneshwar, over 650 students have been trained. Notably, only 20 students qualify to take the course per batch of the course that offers placement across the automotive network in the country. WWW.AUTOCOMPONENTSINDIA.COM

Sterlite Copper is aiming to provide training to 600 youth, which will be scaled up to 1500. Through a new Skill Development Centre (SDC), in Thoothukudi, the company will offer courses focusing on diverse trades including sewing machine operation, electrician, and Logistics-Inventory clerk among others identified as priority areas through the skill gap assessment report of the National Skill Development Corporation (NSDC). With the 300-400 hours of training imparted, the course material will be further developed to meet the community requirements. A hybrid model, combining online and offline, the centre will aim at making people selfreliant by providing them with vocational training to make them job ready. The SDC is supported by the Vedanta Foundation and Birla Edutech Ltd. SEPTEMBER 2021 n AUTO COMPONENTS INDIA

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Building A Green Value Chain In an upfront interaction, Jayakumar G, Group President India, Valeo India Pvt. Ltd. speaks to Ashish Bhatia on the changing customer perception driving changes in the automotive industry. 12

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Upfront | Exclusive emissions and improving safety. 10 years ago, Valeo committed to making CO2 emissions reduction its growth driver. Thanks to more than Euro 10 billion that we have invested in electrification, we have become the world leader in the field. Both in low and high voltage. Nearly 60 per cent of our sales now stem from technologies that contribute to reducing CO2 emissions. As a pioneer and world number one in vehicle electrification, Valeo boasts the widest technologies portfolio to support this revolution. Technologies that cover all segments and all use cases, from affordable hybrid solutions to the most powerful systems. Valeo develops electrification technologies and efficient thermal management systems for EVs but also works on weight reduction and efficiency improvements to reduce CO2 emissions. Valeo is committed to achieving carbon neutrality by 2050 and reach 45 per cent of its objective by 2030. In concrete terms, this means that by 2030 we will have nearly halved our carbon footprint across our entire value chain, be it emissions from our plants, our manufacturing processes and our energy supply, or the emissions from our suppliers and the end-use of our technologies.

“Valeo is committed to achieving carbon neutrality by 2050 and reach 45 per cent of its objective by 2030. In concrete terms, this means that by 2030 we will have nearly halved our carbon footprint across our entire value chain.” Improving safety on the roads is certainly the other major challenge of mobility. For a long time, Valeo has developed technologies able to help the driver to perceive its environment. Our driving assistance technologies currently equip one in four new vehicles worldwide. We were pioneers in this field, with the invention, 30 years ago, of the first ultrasonic sensor for parking assistance. Since then we have developed the broadest sensor portfolio on the market including ultrasonic sensors, radars, cameras and the one and only LiDAR on the automotive market in series production and fitted in series production vehicles.

Q. How are you contributing to the reduction of CO2 emissions and the development of safer driving? Which products in the portfolio are contributing to this vision? A. 94 per cent of our turnover comes from technologies reducing CO2 WWW.AUTOCOMPONENTSINDIA.COM

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"Increasing emission norms, reduction in packaging space and higher engine speeds in passenger and commercial vehicle applications demand high burst, stable friction at elevated temperatures and low-density clutch facings." Another major lever for improving safety on the roads is visibility systems, that encompass lighting and or wiping. We are the world leader in this field too. One figure sums up the challenge: 72 per cent of fatal road accidents take place at night when visibility is most impaired. The headlights we currently sell today allow you to drive with full headlights on in all circumstances, without dazzling the drivers coming in front. The smart lighting systems will go soon far beyond simply improving visibility. They will completely exceed their original functional scope to provide more safety, assistance and

driving comfort, drawing the curves of the road, announcing the next bend, reproducing road signs, or even drawing a protected passage on the road to invite the pedestrian to cross. Q. Elaborate on the development of the advanced range of facings for clutches (including moulded facings), tractor brakes and friction washers? A. Increasing emission norms, better roads, growth in infrastructure and increased drive comfort demands by the end customers constantly challenge the development of facings. Increasing emission norms, reduction in packaging space and higher engine speeds in passenger and commercial vehicle applications demand high burst, stable friction at elevated temperatures and low-density clutch facings. For tractor dry disc brakes, high friction facings support the driver to brake with a lesser pedal effort, in turn, reducing driver fatigue and thereby increasing onfield productivity. These are some of the recent developments in the facings for clutches and brakes. Q. What is the G5 clean technology and have there been any recent

"Exports have grown significantly in 2020 for us despite the Covid19 pandemic, which has contributed to the revenues for Indian operations." iterations made to it that you can share? A. In the friction facings, Generation 5 (G5) technology water is used as a solvent. No other organic solvents are used. This helps in CO2 reduction in the manufacturing process. This is a good example of how Valeo's commitment to environmental protection is now embodied in the extensive product and process design expertise used to eliminate dangerous materials from production processes. The Chennai plant is the second facility in the world to implement this process. Valeo implemented this process at least 10 years ahead of the relevant global regulations. In performance terms, occupants of vehicles adopting the G5 clutch will experience enhanced levels of driving comfort when changing gear due to the suppression of engine vibrations and the extremely smooth, judderfree, clutch action. Q. Staying on brakes, how have you optimised associated emissions for different duty cycles? A. In brakes, we operate in the tractor segment only. Stable high friction even at elevated temperatures reduces the stopping distance. This increases the driver’s confidence on brakes and avoids partial braking during the drive, which in turn saves fuel and hence reduces emissions. When the confidence on brakes is higher, tractor drivers tend to avoid half-clutching, which in turn reduces fuel consumption. Q. How are you prioritising the go-to-market strategy which means

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Upfront | Exclusive catering to different technologies (manual to automatic/single to dual-clutch) and vehicle segments on a regional basis across your key target markets? Exports are known to have significantly contributed to the overall revenue. A. Valeo has development and manufacturing sites distributed across countries. This is based on regional demands and the availability of competent manpower. In India, the Automotive market is dominated by manual transmission - across different formats of vehicles - threewheelers, passenger cars, SUV, MUV, micro to large trucks, buses and farm equipment. Hence, our Chennai facility leads dry facings for manual transmissions and supplies facings to Valeo, LuK, ZF, Eaton, Exedy and other domestic clutch makers. We also export friction facings to the global market from Chennai. Exports have grown significantly in 2020 for us despite the covid pandemic, which has contributed to the revenues for Indian operations. The development of facings for wet applications happens in Europe. Q. How are you leveraging the Chennai R&D centre as a global hub with learnings and resultant efficiencies introduced over the pandemic-marred fiscal? A. Valeo’s Chennai R&D centre caters not just to local developmental needs, but also the needs of Valeo’s global sites. Our Chennai R&D centre provides engineering support across varying domains - Mechanical, Simulations, Electronics, Software & Vision systems. Our R&D centre in Chennai was operationally supporting both local and global engineering development despite the pandemic induced uncertainties. Exposure to local and global projects across continents and varying products, processes has helped our engineering teams to develop skills and standardise development activities. This has helped the R&D WWW.AUTOCOMPONENTSINDIA.COM

"Increased awareness on safety and increasing regulatory demands will necessitate the growth of active safety functions including Advanced Driver Assistance Systems (ADAS) and the drive monitoring systems."

the lockdowns had resulted in a slowdown in the automotive market in 2020 both in the OE and aftermarket. The market is expected to recover in the coming months.

centre face the pandemic. Local market demands drive the need for building competencies locally. For example, a manual transmission will last longer in India than in other countries. This makes India, and hence Chennai, the ideal centre to grow dry friction development - for Indian and for Global needs. Q. How has your exposure to the OE and aftermarket changed over the last five to eight quarters? What is the revenue mix? A. Valeo has been a strong player in the aftermarket since 2012 and the business has been consistently growing with double-digit Compounded Annual Growth Rate (CAGR) for the last four years. Covid-19 pandemic and

Q. What is the outlook for the foreseeable future? A. India is already amongst the top four automotive markets in the world. Changing customer perception on safety, health and hygiene in the post-pandemic world will drive the changes in the Indian automotive industry. Two-wheelers and threewheelers will see a rapid shift towards electrification in the next five years. In passenger vehicles, ICE will continue to coexist with EVs for some time, but with additional measures including hybridisation - increasing their efficiency and reducing emissions. This will give the space for homogeneous transformation in the industry - ICE to EV transformation. Increased awareness on safety and increasing regulatory demands will necessitate the growth of active safety functions including Advanced Driver Assistance Systems (ADAS) and the drive monitoring systems. Overall, in the next decade, we will see a major transformation in the automotive industry, which will be greener, safer and smarter. We will also see many new segments emerge for the first and last mile connectivity and delivery. ACI

AUTO COMPONENTS INDIA n SEPTEMBER 2021

They are

obilised

Visteon The Visteon iterations to the SmartCoreTM cockpit domain controllers are exciting. Sumesh Soman looks at the key integrations paving the way for next-gen driving experiences.

he AdrenoX derives its genes from the Adreno Graphics Processing Unit (GPU) that first came onto the scene in 2018, at the Consumer Electronics Show (CES). Powered by automotive solutions from Qualcomm Technologies Inc., it is crucial to Visteon’s run for leadership in the cockpit electronics segment. A scalable hardware and software stack, it is aimed at supporting advanced cockpits, and it succeeds in doing so on first impressions. On the supply side, it is built on the foundation of offering high levels of performance, cost and reliability that can be tailormade for Original Equipment Manufacturer (OEM) requirements, for their respective vehicle platforms. Stated Aashish Bhatia, Regional Vice President and General Manager, Visteon India, “We are proud that our engineering and manufacturing capabilities in India, combined with our global leadership in cockpit domain controllers has resulted in creating a personalised digital cockpit,” case-in-point being the inclusion on a recently launched Sports Utility Vehicle (SUV). “Visteon’s technology elevates user experience by keeping occupants safe, informed, engaged and entertained,” he claimed.

The DNA of AdrenoX

According to Pramod Nanjundaswamy,

Director - Product Delivery, Visteon, the AdrenoX is an intelligent cockpit technology powered by the SmartCoreTM which fires up the in-cabin cockpit screens and telematics. In its earlier generation SmartCore™ powered virtualised graphic engine ran three displays and one head-up display claimed to deliver an enhanced driver and passenger experience through a single, seamless Human-Machine Interface (HMI). It made it possible to collate content from different safety-critical and infotainment domains, including media applications and navigation on all connected displays. Secure and seamless were a priority even then. Back then, the second generation cockpit domain controller was designed to integrate infotainment, instrument clusters, information and head-up displays, Advanced Driver Assistance Systems (ADAS) and connectivity into a single Electronic Control Unit (ECU). This foundation was shared to be scalable from assisted to autonomous driving applications. Claimed to have been designed to meet the need for an intuitive and personalised digital experience of the new-age tech-savvy consumers, it boasts of multi- display environments that can support a digital voice assistant, instrument cluster, infotainment, cloud connectivity, security and telematics. Taking the Optical bonding

AUTO COMPONENTS INDIA n SEPTEMBER 2021

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Mobilised

Sachin Lawande, Chief Executive Officer, Visteon Corporation

baton from Adreno, which ran on the Snapdragon 820A automotive platform, it builds on the DriveCore™ , an open platform consisting of the layers like hardware, middleware and frameworks. These are known to aid in development of the machine learning algorithms for object classification, detection, path planning and execution.

Leveraging technology

Visteon is leveraging its technological prowess across Artificial Intelligence (AI), connected car applications, cybersecurity, user experience and interior sensing. Visteon’s machine learning algorithms, for instance, are known to offer advanced perception, localisation and driver monitoring capabilities. Visteon is also known to leverage HTML5 and Androidbased connected infotainment platforms, to facilitate builtin smartphone integration with CarPlay and Android Auto technologies. Notably, the company is able to tailor these for varied consumer cost points. It effectively means that what was WWW.AUTOCOMPONENTSINDIA.COM

Aashish Bhatia, Regional Vice President and General Manager, Visteon India

restricted to the luxury vehicles at the top end of the spectrum have percolated to the segments below. Visteon is also offering end-to-end cybersecurity by controlling design and development of the ECUs. It is able to not only securely manufacture but sustain the offerings with secure OTA updates. The adaptive Graphic User Interfaces (GUIs), the color, content and complexity of the cockpit are all built in a manner that it can be customised through change in parameters. OEMs thus are not required to carry out an additional asset development or go through with mid-cycle adjustments. The Driver Monitoring System (DMS) can be used by OEMs to offer identification of the drowsiness and distraction level of the driver. Visteon makes use of infrared

Pramod Nanjundaswamy, Director - Product Delivery, Visteon Technical And Services Centre Pvt. Ltd.

camera-based solutions for facial recognition while deploying AI to monitor driver distraction, drowsiness, emotion, and head and eye gaze. Visteon has won USD 3.2 billion in new business during the first half of the year. This includes a USD 640 million second-quarter expansion of a previously awarded digital cluster program, bringing total lifetime value for that program to USD 1.5 billion. Of the 50 plus product launches in the pipeline, globally, seven products are known to have been launched in the second quarter of financial year 2022 (Q2FY2022). According to Sachin Lawande,Chief Executive Officer, Visteon, the strength of Visteon’s digital product portfolio supports the industry trends of digitalisation and connectivity, and has led to the company’s continued market outperformance even in a supply constrained environment. New business wins, product launch cadence are among the driving forces of the company’s continued longterm growth. ACI SEPTEMBER 2021 n AUTO COMPONENTS INDIA

obilised

Color Compact Spectrophotometer Axalta Coating Systems has launched the Acquire Color Compact spectrophotometer. Deepti Thore looks into the claims of cost-effectiveness, accuracy and faster colour match.

xalta Coating Systems Ltd., known for providing innovative and sustainable coating solutions for the automotive industry has introduced ‘Acquire Color Compact’ spectrophotometer. It is aimed at addressing the automotive industry’s longstanding requirement of colour matching. These requirements come from the body shops where the deck searches and spray tests are known to be time-consuming. Making it available in the Asia-Pacific region including China, India, Korea, Southeast Asia and Australia, the global supplier of liquid and powder coatings is eyeing a larger customer base with this launch. Not only is the spectrophotometer claimed to be small in size and light in weight, but it is also positioned as affordable too. “A powerful demonstration of Axalta’s commitment to total customer support,

AUTO COMPONENTS INDIA n SEPTEMBER 2021

our next-generation spectrophotometer benefits from the power of all the digital platforms,” pointed, Simon Lee, APAC Refinish Business Director, Axalta.

Accurate colour match

Designed to provide high-speed access to over 200,000 current colour formulas using enhanced digital connectivity, the spectrophotometer is aimed at delivering an accurate colour match every single time. This capability is made possible by a three-angle measurement and the use of LED technology. The capability extends to solid colours, as well as add-on enhancer effects like the sparkle effect. Users can look forward to step-by-step instructions on the large high-resolution screen, carefully designed to offer an easy-to-use, user

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Mobilised KEY USPs Faster Colour Matching Light weight Affordable and Profitable Easy-to-use Accurate

Simon Lee, APAC Refinish Business Director, Axalta Coating Systems Ltd.

interface that is feature-loaded. These multi-faceted features in combination make colour identification and matching more efficient, reliable and are claimed to help operators save time. The state-of-art device works with all Axalta refinish brands, including Standox®, Cromax® and Duxone®. These spectrophotometers are designed to be compact with an internal light source and are made available with an optimised calibration kit which comes with an additional tile. It also enables wireless measurements and helps in auto-correct formula to enhance operability.

borne by the operator. The operator is required to choose a flat area as close as possible to the damaged area and clean it ahead of the colour measurement cycle. This is followed by degreasing of the cleant surface, mechanical polish and a clean wipe. The degreasing is repeated on the polished surface in one more iteration. The device is calibrated using white and green tiles for measurement coupled with the software aiding in the identification of the best match. The final step is to spray which inturn is on a calculated basis of the operator requirement to apply RFU, mix of colour and spray coverage.

Utility scorecard

It enables the professional body shops to create more accurate and faster colour matches with the help of productive digital colour measurement tools thus claimed to enhance their efficiency and effectiveness. This is yet another innovation from Axalta that leverages fast, efficient, high-quality coating technologies and integrated digital business processes. It is claimed to have made the entire paint repair journey faster, easier and more profitable for many centres and custom painters around the world. ACI

The operating procedure

The advanced portable computerised colour matching tools offered by Acquire Color Compact at first captures the exact colour of a vehicle. It then transmits the information to Axalta’s color retrieval software installed on the Axalta Color Cloud. The device comes into play first by helping operators identify the damaged area followed by an assessment of the refinish requirements. This is followed by checks to determine the manufacturer and colour code. It runs a check to identify any special pigments that may be included in the formula. Doing so helps prevent higher repair costs that would have otherwise been WWW.AUTOCOMPONENTSINDIA.COM

SEPTEMBER 2021 n AUTO COMPONENTS INDIA

usiness Filing

Anand Mando e-Mobility Anand Group and Mando Corporation have entered into a JV. Prateek Pardeshi looks at the growth potential tied to the demand for e-mobility.

ndia, as a signatory to the Paris Agreement, is prioritising electrification on a national level. This national mission is backed by the Government of India’s (GoI) FAME scheme. Known to have sold 1,05,268 EVs till date, from Tamil Nadu to Jammu Kashmir, as per the Ministry of Heavy Industries statistic, there are no two ways about the GoI led, and state followed focus on emobility. For instance, through the FAME II scheme, the aim is to generate demand through the sale of an estimated 7,000 e-buses, five lakh electric three-

AUTO COMPONENTS INDIA n SEPTEMBER 2021

wheelers, 55,000 electric four-wheelers, passenger cars including strong hybrids, and 10 lakh electric two-wheelers. To leverage the government’s provisions for intra and inter-segment wise fungibility that is extended to privately-owned registered vehicles up to vehicles used for public transport and commercial vehicles, Anand Group and Mando Corporation have entered into a Joint Venture (JV). Here, the ANAND Group will hold a majority stake of 60 per cent in the JV formed

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Business Filing

Anjali Singh, Executive Chairperson, ANAND Group

Jaisal Singh, Co-Chairman, Mando Automotive India Pvt. Ltd.

with Mando Corporations holding a 40 per cent stake. In a company release Anjali Singh, the Executive Chairperson of ANAND Group said, “The collaboration with Mando Corporation is in line with the key ethos of the ANAND Group’s vision, to create value sustainably through the pursuit of excellence. I am confident that this long-term association will continue to evolve by leveraging the synergies and mutual strengths to successfully create efficient products and systems for the Indian Electric Vehicle industry.” The JV-Special Purpose Vehicle (SPV) is expected to deepen the historic ties between the two entities and propel

forward the growth aspirations. The SPV - Anand Mando e-Mobility Pvt. Ltd. will have the partners leverage existing synergies, respective capabilities, and their diverse experiences in the auto component industry. ANAND Mando eMobility will focus on manufacturing and marketing EV components and systems for the two- and three-wheeler applications.

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Product segmentation

ANAND Group and Mando Corporation will supply motors and controllers for the emerging two- and three-wheeler EV market. Through ANAND Mando eMobility, the two

entities will address the varied and complex Indian driving conditions by catering to vehicles from low-speed scooters at the bottom end of the spectrum to high-speed motorcycle and passenger transporters and cargo carrier three-wheelers. Jaisal Singh, Co-Chairman, Mando Automotive India Pvt. Ltd. commenting on the future plans focused on the growth and financial investments of JV stated, “The market for EV components is expected to grow at a CAGR of approximately 22 per cent till 2030. ANAND Mando eMobility clearly has the engineering capability and technological know-how to service the growing demand for motor and controller components in India.” The target set by the Government of India for the electrification of the automobile sector in India has led to the Electric Vehicle market in India gaining momentum, especially after the implementation of the FAME India scheme. And, it is only natural for us to be a part of this exciting story that will be a key factor in ensuring a cleaner and healthier planet for future generations” The focus will remain on manufacturing robust, reliable, and efficient powertrains using inhouse components. In line with the ‘Atmanirbhar Bharat’ vision of the government, the company will offer clean and sustainable solutions built

SEPTEMBER 2021 n AUTO COMPONENTS INDIA

usiness Filing

using localised cost-effective, alternatives to imports. Setting up a base in Rajasthan, the manufacturing unit for the SPV is known to be planned for an expanse of 60,000 sq. ft. with scope for further capacity expansion. It will aim for a quick turn-around, from commissioning to product rollout. The SPV could extend openings to an additional 350-450 employees. “With the kind of investments we are making in establishing a worldclass production facility, and, of course, recruiting top human talent, I am confident that we will be a preferred supplier and shall achieve a turnover of rupees 500 crores by 2025,” added Singh. Using the available ecosystem and incentives offered at the state and the national level, the state government had recently announced incentives on the lines including subsidies on the upfront cost of EVs for early adopters subject to meeting the eligibility criteria. The SPV will also benefit from the recent order issued by the Rajasthan government’s transport

department. As per the order, Rs.10,000 will be reimbursed on the purchase of a three-wheeler with a battery capacity of 3 kWh; Rs.15,000 for 4 kWh battery capacity; Rs.20,000 for a battery capacity of over 5 kWh; for twowheelers, Rs.10,000 for battery capacity of more than 5 kWh; Rs.9,000 for battery capacity up to 5 kWh, Rs.7,000 up to 4 kWh and Rs.5,000 up to 2 kWh.

Outlay

Over the next three years, capital expenditure of more than 50 crore INR will be made in the fields of product engineering and testing, as well as manufacturing equipment. ANAND Mando eMobility aspires to achieve a turnover of 500 Crore INR by 2025. The Hub Motor will be ready to be launched for two leading 2 - Wheeler EV Original Equipment Manufacturers (OEMs) by October 2021. The product launches will continue with the Center/Mid-Drive Motor in mid- 2022 followed by a stream of variants thereafter. ACI

AUTO COMPONENTS INDIA n SEPTEMBER 2021

Adopting Global Best Practices

With the collaborative effort of trained personnel and the adoption of global best practices, ANAND Group, the majority stakeholder (60 per cent) in the new JV ANAND Mando e-Mobility is banking on its agility led by a responsive workforce. 15 per cent of the Operating Engineers (OEs) specialise in specific duties, such as maintenance (STOE). Through the ANAND Heijunka manufacturing system, the company is claimed to have a strong framework for shopfloor excellence. The Quality Management System (QMS) outlines the processes, methods, and responsibilities involved in meeting qualitative goals. To tackle qualitative discrepancies, opaque customer communications, and unsystematised techniques, the management has put in place a zero-tolerance policy. There are Quality Circles (QCs) where employee workgroups gather on a regular basis to discuss and address quality concerns. Fundamental causes are identified and solutions are provided to implement corrective actions. The goal at ANAND is to ensure that all OEs participate in all QCs in order to better quality on an ongoing basis. Every year, this group of firms are encouraged to compete at national and international contests to represent such QCs. WWW.AUTOCOMPONENTSINDIA.COM

86% TRUST

Advertising in traditional media continues to enjoy high trust amongst consumers, with 86%* expressing confidence in print – making it the most trusted medium.

* ASCI - ISA Report Findings

c The Explicit Manufacturing Goals over Story

Auto component manufacturers continue to strive for business development and continuity. Ashish Bhatia draws attention to the explicit manufacturing goals for long term stability.

uto component manufacturers continue to strive for excellence as much for business development and continuity. The explicit goals on the anvil form the basis of a long-term stable outlook. To attain stability, the groundwork in the near to medium term must encompass survival, revival and growth strategies. Collaboration at the value chain level is proven to have been a stepping stone for the industry. All collaborators, it is unanimously agreed upon, must demonstrate agility, flexibility, and customer-centricity. Speaking at the 61st Auto Component Manufacturer Association (ACMA) annual conclave, Deepak Jain, Ex-President, ACMA said, “Despite several challenges the industry has displayed remarkable resilience with a collaborative spirit. We are now witnessing a gradual resurgence of demand for vehicles, and I am hopeful that we will be able to ensure business continuity and return to pre-covid levels of performance, sooner rather than later.” Concluding a successful term ridden with unprecedented challenges as ACMA President, Jain advocated for the need to plan not just for today and tomorrow but keeping in mind the longterm prospects. Including tapping new business wins in a constantly evolving technological landscape.

On the anvil

ACMA and PricewaterhouseCoopers (PwC) through a joint study, urged the stakeholders of the industry to change their operating model in order to be agile, flexible and customer-focused, and succeed in the new normal. “Our study shows that companies with robust

AUTO COMPONENTS INDIA n SEPTEMBER 2021

financial management capabilities and a focus on growing value-added per employee and strong alliances with suppliers and customers will emerge successfully,” said Kavan Mukhtyar, Partner and Leader - Automotive, PwC. “Attracting and retaining top talent, building and nurturing a core leadership, and separating ownership from company management are some of the other best practices that will help companies thrive amid volatility,” he mentioned. Market volatility, he cited, would become more frequent and only intensify going forward driven by both domestic and global events. Notably, the underpinnings of the business models known to have helped the automotive industry sustain over the last century, are undergoing transformational changes as per the study. Dealing with the compliance burden, price increases, capex commitment and increased accountability, component manufacturers are required to step up. Manufacturers are building supply redundancies to deal with unpredictable tariff regimes, attain a state of agreement with OEMs aiming to balance costs and parts availability. The supplier’s fate on the OEM exposure front today rests with OEM expansion plans. The latter depends on the permissibility to cater to both the domestic and global markets. The supplier ecosystem, notably, must grow in conjunction with OEM location preferences. To deal with the supply chain volatility, case-inpoint, the much talked about semiconductor shortages, in the near term the focus stays on catering to highly profitable and in-demand WWW.AUTOCOMPONENTSINDIA.COM

Cover Story

Sunjay Kapur, President, ACMA

Deepak Jain, Ex-President, ACMA

Kavan Mukhtyar, Partner and Leader - Automotive, PwC.

vehicles as per the IHS 2021 February release, PwC Autofacts. With electronic content in cars of the future pegged at greater than 40 per cent on fronts like Human-Machine Interface, Infotainment, Advanced Driver Assistance Systems (ADAS), connectivity computing, cloud-based enablement, the industry is required to re-evaluate their CASE strategies. Available technology, value pool size and unit economics are expected to take precedence going forward. The study estimates traditional profit share from supplier business to halve from 71 per cent to 41 per cent.

build business forecasts for multiple scenarios. The study advocates the need to apply the most relevant assumptions for the base inputs to their forecast models. A plan of action must be laid out for each of the scenarios and the same must be communicated to all the stakeholders. There is a need to ensure adequate resource allocation for scaling up of assets. One must evaluate the restart of halted projects for delivering future growth. The study advocates suppliers to maintain strong linkages in turn with tier2 suppliers and refrain from spreading too thin. Break-Even Point (BEP) reduction found a special mention too. A case study of a piston manufacturer, using a financial risk dashboard with a built-in escalation workflow is highlighted. The thresholds defined, drive escalations to essential stakeholders, in time to review key metrics and control the possibilities of incurring financial losses. For BEP reductions, the study cites a case study of an auto-electronics manufacturer known to have revisited its contracts and reviewed the expenditure on non-core assets. The manufacturer is known to have benefitted from renegotiating its leases to obtain a more favourable pricing and tenures. While fixed-cost cutting programmes must be run, firms must also monetise non-core assets and explore innovative ways of asset sharing to achieve break-even reduction, cites the study. A shared asset-

light model is opined to translate into better cost-control. With fast-evolving business conditions and disruption in business models, manufacturers must accelerate their pace of digital adoption too. Key business enablers such as analytics dashboards, remote work and customer preferences will find a greater say going forward. Firms are advised to keep a hawk-eyed view of both supply and demand to overcome the shortcomings of traditional predictive models. Leading indicators must be identified, points out the study. Co-creation and venture funds are said to allow manufacturers to assess, build and scale new solutions quickly and cost effectively. Time-to- market can be detrimental to a firm’s success, it reiterates. Frequent evaluation of tradeoffs requires identified leaders within an organisation to be empowered to make these decisions. Apex body ACMA is working on building a startup platform aimed at understanding, developing information about, and assessing the start-up ecosystem relevant to auto and mobility players. It is indeed an imperative for ACMA to drive change through entire component manufacturing ecosystem and help members to stay relevant with increased focus on localisation and indigenous technology development, mentioned the incoming ACMA President, Sunjay Kapur. ACI

Imperatives for EV component suppliers

EV adoption will be driven by cost economics, availability of infrastructure and state-level EV policies. Suppliers are increasingly focusing on EV skateboards. They are looking at collaborations to bring down development costs and build capabilities. The high-voltage architecture is presenting suppliers with opportunities to work on different sub-components. This is besides the business models of product sales, charging infrastructure and other monetisation avenues. This wave of opportunity has made suppliers hopeful of growth.

Educated decisions

Manufacturers are required to WWW.AUTOCOMPONENTSINDIA.COM

SEPTEMBER 2021 n AUTO COMPONENTS INDIA

over Story

Safeguarding The Bottom Line

Pricol Limited is banking on evolution for sustainable growth. Prateek Pardeshi looks at how the manufacturer is safeguarding the bottom line.

ricol Ltd. has continued to evolve for sustainable growth since it first commenced operations in 1975. The automotive components and precision-engineered product manufacturer is coming off a tough pandemic marred fiscal with an even greater determination to succeed. It is determined to safeguard the bottom line with refined and well-oiled processes and practices with the help of its in-sync human capital. In a company release, stated Vikram Mohan, Managing Director, Pricol Limited, “We are going through challenging times in the automotive industry thanks to the lockdowns due to the

AUTO COMPONENTS INDIA n SEPTEMBER 2021

pandemic compounded by the acute shortage of electronic components globally which is taking its toll on the company’s performance. Nevertheless, with prudent cost control and continual new business wins we are confident of delivering above-market growth rates and maintaining the bottom lines despite these challenges.” A testimony to the company doing everything in its capacity to safeguard the bottom line is the recent financial performance of the company. The first quarter of the financial year 2022 (Q1FY22) shows a marked improvement over

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Cover Story Q1FY22 v/s Q1FY21 (Figures in crores) Particulars

Q1FY21

Q1FY22

Per centage Growth

Total Income

117.36

306.52

260.64

Revenue from Operations

103.97

292.75

281.57

Operational EBITDA

2.40

32.70

136.25

Profit Before Tax (PBT)

(31.22)

4.06

Profit After Tax (PAT)

(28.93)

2.41

the same period a year ago (Q1FY21) when lockdown restrictions rendered plants inactive, forcing production to come to a standstill (Refer to the table above). Despite comparing on a lower base, the recent turnaround assumes significance. The focus of Pricol, like peer manufacturers, has been on fast-tracking its recovery from the recent degrowth. The focus is to attain a growth momentum akin to the pre-Covid19 levels on a sequential basis before setting sight on new milestones. According to Mohan, the company is well aware of the need ANNUAL REPORT 2021 to keep strengthening its existing processes and practices to succeed on NEW a mid to long-term horizon, excel and

BUSINESS WINS

Vikram Mohan, Managing Director, Pricol Limited

support the mid to long-term outlook. “Loss of sales due to potential further lockdowns and shortage of electronic components we believe will continue to impact the automotive industry in India for a few more quarters. But we remain bullish about the mid to long term prospects for our company due to the new business wins especially in the Electric Vehicle (EV) segment and growth in market share of the company.” As per the table above, Pricol in Q1 FY22 registered a total income of Rs.306.52 crore compared to Rs.117.36 crore in Q1FY21. Here, revenue from operations was pegged at Rs.292.75 crore compared to Rs.103.97 crore

2W CONNECTED, LCD & TFT CLUSTERS EV CLUSTERS

2W ELECTRONIC DIGITAL CLUSTERS

in the same period the previous year. Operational Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) accounted for Rs.32.70 crores over Rs.2.40 crore. Profit Before Tax (PBT) turned positive to Rs.4.06 crore as against degrowth of (-) 31.22 crore. Profit After Tax (PAT) turned positive to Rs.2.41 crore over degrowth of (-) 28.93 crores in comparison. Setting aside the low-base effect of FY21 on the quarterly performance, on comparing Year-over-Year (YoY) growth 2021 with 2020, ANNUALof REPORT 2021 the company’s net sales witnessed degrowth of (-) 11.67 per cent. The NEW consolidated net profit grew by 142.03 BUSINESS WINS per cent. The operating profit (PBDIT) exclusive of other income grewVALVE by FUEL PUMPS & E-PURGE 109.55 per cent positively impacting the consolidated net profit which in turn grew by 142.03 per cent. The company also fuelled its growth plans by investing higher. Investments rose from Rs.9.52 crore in 2020 to Rs.15.03 crore in 2021. On a standalone basis, the company witnessed a 17.3 per cent growth in HEAVY revenue from operations in DUTY EXPORT PUMPS FY21 compared to the previous year

Strategic moves

The company is also known to have benefitted from hiving off the bleeding overseas operations known to have had a major impact on the bottom line right before the pandemic hit

PASSENGER VEHICLES & COMMERCIAL VEHICLES CLUSTERS WWW.AUTOCOMPONENTSINDIA.COM

SEPTEMBER 2021 n AUTO COMPONENTS INDIA

ANNUAL REPORT 2021

NEW over Story BUSINESS WINS FUEL PUMPS & E-PURGE VALVE

HEAVY DUTY EXPORT PUMPS

SPEED SENSORS

business. The strategic move is claimed to have been in line with the objective to become leaner and focus more on profitable geographies. With the business restructuring, the profitability of its business is banking on dashboard instruments majorly. A look at the pre-Covid19 contribution of finished goods to the sales turnover shows dashboard instruments accounted for a majority in the overall sales turnover at 55.70 per cent as of March 2019 superseding other products and service income, oil pumps, and other auto components (The figure stood at 38.60 per cent as of March 2018).

Fast forward to 2021, the trend 09 continues. The new business wins are led by dashboard instruments too. These include two-wheeler connected LCD and TFT clusters; EV clusters;

AUTO COMPONENTS INDIA n SEPTEMBER 2021

two-wheeler electronic digital clusters; passenger vehicles and commercial vehicles clusters. The company has also witnessed a pull for fuel pumps, e-purge valves, heavy-duty export pumps especially for export markets, and speed sensors. Today the company is banking on its high-value and high margin products for fast-tracking its growth trajectory. Low value and low volume products are known to have been discontinued in a bid to reduce the resources utilised for the same. Notably, new products are claimed to have accounted for ~ 40 per cent of the revenue driven by R&D spends at 1.80 per cent of sales. Pricol is also evaluating and adopting the global engineering process (like ASPICE) to enhance the product quality of all our electronic products. The company also continues to strategically align with new partners to further its aspirations. Recently, the company inked a strategic alliance with Candera, known for HumanMachine Interface (HMI) tools to cater to its global automotive and industrial customers. This strategic technology partnership with Candera is expected to enable Pricol to get access to global HMI solutions for its next-generation connected Driver Information System (DIS) products serving across all vehicle segments. “We are delighted to be partnering with Candera to enhance our capability to deliver nextgeneration connected high-end Thin Film Transistor (TFT) based Digital Information Archiving System (DIAS) (single and multi-display) that meet our customer’s ever-evolving technological needs,” concludes Mohan. ACI

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Unprivileged Eyes On Downstream Aluminium The versatile metal is anticipating prominence writes R K Jain - Sr. Vice President-Corporate Affairs, Jindal Aluminium Limited

AUTO COMPONENTS INDIA n SEPTEMBER 2021

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n everyday life, one finds aluminium being used in many applications, starting from consumer appliances, construction, automobiles, and packaging to space vehicles and more. As a versatile metal offering positive efficiency, safety, and durability, aluminium is not just the fastest growing metal but also brilliantly caters to present-day requirements and complex engineering demands. But unlike other worthy metals, the Indian downstream aluminium sector has long awaited its due or recognition. The lack of a policy framework has resulted in largescale imports of downstream aluminium at prices that domestic manufacturers cannot compete with. Presently the downstream aluminium sector in India has around 2,500 players with a processing capacity of 3.9 million tonnes. It comprises both large and mid-size firms and a much more significant number of smaller and unorganised players. The industry has time and again voiced the need for a policy-driven focus by the government. The sector will primarily benefit from a policy that focuses on the entire spectrum and offers a level playing field.

Policy Recognition

Creating a policy for the downstream aluminium segment will be a game-changer and a definite boost for the country’s economy at large. India needs an approach that will put the downstream aluminium sector on the fast growth track. The Niti Aayog too has pressed for such a policy framework. In its report titled ‘Need for an Aluminium Policy for India’, the Niti Aayog has highlighted how compared to a world average of 11 kilograms, India has a per capita aluminium consumption of 2.5 kilograms, which is low! As far as consumption WWW.AUTOCOMPONENTSINDIA.COM

Special Reads goes, a look at the global markets shows that the auto and transport sector accounts for 23 per cent of aluminium consumption. Globally, this is followed by construction at 22 per cent, packaging at 13 per cent, electrical at 12 per cent, machinery and equipment at 8.5 per cent each. Consumer durables consume 4.5 per cent, and other segments amount to four per cent. In India, the power sector is the biggest consumer of aluminium at 48 per cent, followed by transport and automobiles at 15 per cent, building and construction at 13 per cent, and consumer durables accounting for seven per cent of the aluminium consumption. Consumption and demand will rise to benefit from a policy that addresses issues of the downstream aluminium segment. For instance, imported downstream products enjoy advantages under various export promotion schemes approved by the government of their originating countries. Having a policy that focuses on providing a level playing field to the domestic downstream aluminium manufacturing will help arrest its declining domestic market share due to subsidy-backed aluminium imports making their way into the country. In continuing the trend of economic growth, aluminium consumption is expected to increase rapidly across sectors, especially with demand led by EV manufacturing which has received a push from the government. As the Indian aluminium industry forges forward, only a specific policy will ensure that this demand is met by domestic downstream aluminium and not by imports alone.

Planning Downstream

Further, India has a vast potential for increased aluminium consumption riding on Government initiatives comprising of make in India, smart cities, housing for

all, rural electrification, dedicated freight corridors, high-speed railway networks, and many more. But for this Indian aluminium growth story to shape uprightly, there is an urgent need for policymakers to recognise that only if a level playing field is provided to Indian local industry will it enable them to invest and grow in a viable manner.

Key to Industrialisation

As a strategic metal, aluminium will continue to play a crucial role as India goes through a phase of further industrialisation. Being a corrosionresistant and electrically conductive metal impermeable to air, water, ultraviolet, and microorganisms and particularly strong, it is ideal for many uses. Its essential role in shipbuilding and railways has been noted since the end of the 19th century. In the future, aluminium is set to find use in a wide range of areas, from new-age EVs to manufacturing equipment for the defence and security of our nation. As the role of aluminium in improving industrial performance marks its literal presence everywhere in our everyday life through cutting-edge solutions, it has managed to power the industry through its use in the design of futuristic products for every sector including automotive. ACI -----------------------------------------Jindal Aluminium Limited (JAL) is India’s largest aluminium extrusion company with a legacy spanning over 50 years. The company’s core business is the manufacturing of aluminium extrusions and aluminium flatrolled products. With INR 30 Billion (USD 435 mn) turnover and with a production of above 1.25 lakh tonne in FY 2018-19, JAL is the leader in aluminium extrusions and is one of the leading companies in aluminium flat-rolled products in India.. -----------------------------------------The opinions expressed within the content are solely the author’s and do not necessarily reflect the opinions of ACI Magazine.

SEPTEMBER 2021 n AUTO COMPONENTS INDIA

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Preparing For The Third Wave The automotive industry can offset the impact of the third wave of Covid-19 by mapping tier suppliers among other initiatives writes Manav Kapur, Executive Director, Steelbird International.

he health ministry has said that the third wave of Covid-19 is now imminent and India should start to prepare itself for the new mutant of novel Coronavirus. The outbreak of the pandemic and consequent lockdowns have had a devastating impact on India’s automotive sector. The second wave of Covid-19 has only added to its woes, taking a heavy toll on it, not just economically but emotionally as well. With different pandemic waves impacting with uncertain cycles, the auto sector has started behaving similarly in terms of its peaks and troughs. There will be a rise and fall in demand and fluctuation in supply as well. Moving along, many industry mavens from various sectors unanimously think that India has learned many lessons from the pandemic, and it can certainly handle the challenges if the third wave arrives in the near term. Strict adherence to the Covid-19 guidelines, employee and partner safety protocols, stringent social distancing, regular sanitisation and vaccination can help in averting the onset of another wave to a great extent. Some steps adopted by the manufacturers can be broadly summed up in the following points.

We have observed that the pandemic has worsened the condition of migrant workers in India. Whenever there were any new announcements made by the government, the migrant workers lined up at railway stations and bus stops to head home. This affected the production adversely in many manufacturing units. There are innovative ways to retain manpower. And in some cases, companies have started looking for labourers who are not migrant but local, also at times offering better facilities so that the toll on the labourers is minimised.

Buffer stock

Strong secondary mapping

With the current pandemic still ongoing, the manufacturers have started keeping buffer stock at every level. The auto industry like the case with pharmaceuticals is maintaining enough supplies to keep operations running smoothly even during unprecedented times. A buffer of raw materials can stabilise the fluctuation in demand and supply.

Lesser imports and higher localisation

While the dependency of the auto manufacturing sector on imports is approximately 70 per cent companies are supporting 75-95 per cent localisation and focusing less on imports. In the wake of the global pandemic, many nations had come to a WWW.AUTOCOMPONENTSINDIA.COM

standstill, with negligible business operations which in turn encouraged manufacturers to look for more indigenous associates or partners in the domestic market. The supply chain management got badly affected during the pandemic. To improve the customer experience and meet the ongoing demand, there is a dire need to adapt the government’s hundred per cent localisation movement and start to cut dependency on imports.

Hiring local manpower

The auto sector can offset the impact of the upcoming third wave by strongly mapping the tier2 and tier3 suppliers. There is a need to monitor the position and stock level, evaluate the manpower situation. The auto sector will have to make consistent endeavours to meet the supply-side obligations as per the demand generated even if the times have been challenging. However, more than preparing for the third wave, we should all work towards preventing the onset of a third wave and follow strict Covid-19 protocols. Else the unprecedented economic downturn of 2020 will raise its head again, with all the challenges the economy faced in the past year leading to massive losses of revenue and livelihoods. ACI SEPTEMBER 2021 n AUTO COMPONENTS INDIA

rending

Bracing For The Rollout Of Scrappage Policy As a financier and service provider in the pre-owned vehicles segment, Bike Bazaar is bracing for the rollout of scrappage policy. Sumesh Soman looks at the value proposition and impact on the components ecosystem as a crucial subset.

he verdict on the scrappage policy is a split one! Divided between an opportunity on one end of the spectrum and a threat of negatively impacting the pre-owned vehicle segment. Warranting a voluntary scrappage, restricting the life cycle of a vehicle to 15-years, the latter segment, has some stakeholders concerned about the business running into third and fourth owner hands being impacted. Here, financier and service provider of pre-owned vehicles, focussed on two-wheelers up to 500 cc, Bike Bazar, has sensed an opportunity. Averred Srinivas Kantheti, Cofounder at Bike Bazaar and Ex-President, Bajaj Auto - Two-wheelers, Domestic Sales, “I don't think it impacts us negatively at all. We do not look at vehicles beyond eight or nine years. We are focussed on the scrappage value which will be credited to the customer.” “We expect the customer to invest in a new vehicle and especially when there is a demand for electric two-wheelers. The scrappage policy can prove to be a useful push for our business,” he opined. Admitting to it being early days to gauge the impact of the rollout in-depth, Kantheti

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drew attention to the pilot commencing in select pockets ahead of a national rollout.

The marketplace dynamics

Bike Bazaar earns 65 per cent of its business from the rural districts. This is expected to go up to 75 per cent by 2026. “So we have to see how the scrappage policy will impact rural areas, and how the government will be able to enforce it beyond the urban metros. It'll be great if we're able to do it actually,” he quipped. As per Kantheti, the phase-wise implementation will kickstart from tier-1 cities and based on the success of the pilot be extended to tier2 and tier3 regions. “It will take a good amount of time for the scrappage policy to function across the country seamlessly,” he opined. Kantheti explained the impact on the components availability and aftermarket ecosystem. It is expected that scrappage policy will result in increased domestic availability of critical parts and raw materials known to be imported on a large scale. “The scrappage policy will help in generating widespread availability of components like electric fitments. Careful removal can result in making them fit for use in new vehicles,” he explained. He deemed that public response to the policy will be instrumental in the success or failure. One can expect these incentives to get better as the policy and its functioning mature, he said. WWW.AUTOCOMPONENTSINDIA.COM

Trending The Blueprint

The new scrappage policy targets curtailing India’s carbon footprint by segregating vehicles and scrapping them to realise a circular economy. Instead of capping a limit on the years of the vehicle, the policy allows it to be driven or driven as long as it can meet the regulation and clear the quality checks. Scrappage is voluntary. There are stipulated guidelines on the vehicle’s registration renewal, hygiene mandates for testing and inspection as well as incentives payout to owners who scrap their old vehicles. It is expected to encourage owners with old and unfit vehicles to dispose of them to upgrade. Expiry of registration fails the fitness test, damage owing to natural calamity or an accident and or the vehicle being impounded by authorities warrant scrappage. Apart from the above mentioned, decommissioned government vehicles and abandoned vehicles also qualify. The government plans to set up 75 inspection centres in the first phase, 26 of them are claimed to be operational. 450 inspection centres could be operational across the country. Over 60 scrapping facilities could open across the country in the next four to five years. These facilities will link back to the VAHAN database. Among government registered recycling centres are CERO - Mahindra MSTC Recycling Pvt. Ltd. and Maruti Suzuki India and Toyota Tsusho Groups’ advanced facility in Noida under a dismantling and recycling JV. Tata Motors’ will also set up a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad, for end-of-life passenger and commercial vehicles.

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Through a mix of brick and mortar and online sales, the company expects traction leading up to the festive season. Of the opinion that the unorganised retail in the pre-owned vehicle commands unduly high margins, the company’s franchise model looks at moderating such unrealistic expectations of those wanting to partner with the company. “We want a franchisee who is ambitious, who says look I will sell about 100-150 vehicles. My margins will be lower but my overall profits will be higher because I'll sell more vehicles and ensure that the customer gets a good deal,” explained Kantheti. The company is content associating with established dealers who in turn are known to have a well-oiled sales and service mechanism given that it implies a seamless, forward integration. The company has learnt

to sustain business and live with the pandemic. Growing at a 100 per cent rate with each passing year, Bike Bazaar has one per cent of its business accounted for by EVs as per Kantheti. “We are building a strong EV business both in leasing and financing. We are also building a strong services business. The aim is to become the largest EV leasing company,” he mentioned. Advising startups looking at turning a lifecycle company, concluded Kantheti, “If anybody wants to build a lifecycle company, now is the time. If you start financing vehicles, instead of buying 10-year old vehicles customers will start buying three to four-year-old vehicles. Our aim is that the new vehicles must change hands within the third or fourth year so that there is a good amount of life left for those following two or three change of hands.” ACI

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pfront | Exclusive

Finance And Services In The Pre-owned Segment Srinivas Kantheti, Co-founder at Bike Bazaar ( Ex-President, Bajaj Auto, Two-wheelers, Domestic Sales ) in an upfront conversation with Sumesh Soman, shares the outlook on the pre-owned two-wheelers segment. Q. What drew you to co-found Bike Bazaar? How has your knowledge and experience at Bajaj Auto come into play? A. I have been working for Bajaj Auto for almost 15 years across various roles in the organisation. I would like to cite two critical roles, heading the ‘Auto Finance’ division under the umbrella of Bajaj Finserv, the capital finance arm of the company for two-wheelers and three-wheelers manufactured by Bajaj Auto. Over the three and a half years of my tenure, we focussed on penetrating deeper into the rural markets with finance as a differentiator. And Bajaj Finance did extremely well on key metrics. On taking over as President - Bajaj Auto for the two-wheeler segment, I looked at the front end involving sales, service, spares, dealership, dealer management, marketing and brand building to name a few. It’s strange how there are multiple car manufacturers in India, but only so many two-wheelers manufacturers in comparison. This is a worldwide phenomenon and it surprises me since twowheelers are the apt mobility solution for this market. 80 per cent of the auto industry constitutes two-wheelers making India, the largest two-wheeler market. India has now become without doubt the R&D capital of the world. So, you can be anybody, for instance, a Triumph, a Harley Davidson, a KTM, and if you want to compete in the global market, you have to have a strong R&D partner in India. Lesser than 500 cc bikes are a majority of the market. Globally, 95 per cent of the market is sub-500 cc. India makes real competitive cost structures possible. When I left Bajaj Auto, I was very clear that I wanted to do something in the two-wheeler space. And that's when we started

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Upfront | Exclusive realising that there are a lot of white spaces in the ownership, ridership model. On average, a two-wheeler changes hands, about four to five times before it’s time to scrap it. With the rollout of the new scrappage policy, that lifespan is set to 15 years. Today, there is no company that hand holds the customer throughout that cycle. This includes buying, selling and servicing, including insurance. The customer is actually lost, as far as the OE sales lifecycle is concerned. So, Bike Bazaar is a concept wherein we want to be along with the customer through the entire ownership, ridership cycle. And, I think there are a lot of opportunities to touch base and create a relationship with the customer. We started in 2017. Q. What does your warranty on pre-owned bikes cover? How do you ensure this on critical components like engine and gearbox for instance? Is it supported by testing and validation? A. We carry out a full checkup. This is spread out over two stages. When we buy the product from an owner, we take photographs of the product, and audiovisuals of the vehicle to gauge the sound and emissions for instance. This helps us value the vehicle. The seller gets access to the quotation in a quick turnaround time of 30 minutes. The purchased bike is refurbished as per the standard packages and SOPs. It entails checking the brakes, checking the carburettor, checking the electrics, looking at oil changes, the battery unit, and tyres. We also look at the fit and finish like body dents and paint coat post which we are able to offer a six to eight-month warranty to the new owner. We do not find any engine issues because these bikes are inherently good skeletons. They also pass our stringent quality checks. We are now developing machine intelligence and machine learning capabilities. We have a database of

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almost 250 odd bikes with feedback from all checkpoints. It helps us ascertain maintenance costs right down to the consumable. The warranty covers the engine and the gearbox, the most critical components. It doesn’t extend to wear and tear due to poor riding habits, for instance, to the brake liner or the clutch replacements. Today the claim on the warranty is less than one per cent. So, obviously, we are doing something right, in terms of ensuring that we are actually getting the right product out into the market. Q. How do you expect the electric two-wheelers to contribute to the mix? A. We are one of the few companies that deal with electric two-wheelers as a product. We don’t cater to it as a personal loan like the industry practice is. We buy credit the way we buy credit for a conventional two-wheeler. So, that means in the deep rural of Tamil Nadu we are financing electric twowheelers today, which nobody else does. Electric two-wheelers constitute one per cent of the market. And we see that growing rapidly and in about five years time anywhere up to 10-15 per cent. I have met a lot of customers for whom the biggest concern is the OEM warranty on the battery pack. If that warranty is two years and we give a three-year warranty, what happens post that period there are no

takers for the out of warranty battery pack. Despite the vehicle in-warranty remaining valid. If one were to benchmark with a Tesla which runs even 10-years into the lifecycle, there is a lot of work that the electric twowheeler industry will have to put in to ensure the battery life. Here ridership will become more important than ownership. So again, leasing may become a very good option. We are also into the Business to Business (B2B) segment of leasing. Today there is a waiting period for electric vehicles hinting at a shortage. Here, there's a huge amount of potential for auto suppliers to ride this wave and start developing indigenous products. I understand that people are setting up battery plants and other infrastructure in India. In my opinion, it will give a big boost to the components industry! Q. In this segment, did you have to face a shortage of critical parts, say electronics or performance tyres? A. There's definitely a shortage of electronic parts. I'm talking about up to 500 cc kind of bikes because most of these are important, and they're coming from the China supply chain that has completely been disrupted. Today there's a waiting list for new bikes. It is a supply-side constraint that has restricted imports. There's not much of a problem with the normal parts. ACI

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nternational

Self Optimised Manufacture The Bosch Wafer Fab in Dresden, Germany is touted as the world’s most modern. Deepti Thore looks at the capabilities of the smart, future-ready factory.

he automotive industry, globally, is finding ways to overcome the shortage of semiconductors. In effect, even with demand sentiment improving, these big supply-side constraints are the biggest handicap for automotive Original Equipment Manufacturers (OEM). It is feared to continue to negatively impact growth for the rest of the fiscal. For a semiconductor, wafers are the key input raw material. After all, it is on these wafers that fabrication with a series of repeated sequential steps aid in the production of electronic circuits on the semiconductor wafer. Bosch is among manufacturers looking at capacity expansion and key acquisitions to ease the bottleneck that is nothing short of a crisis. Dr Volkmar Denner, Chairman of the Board of Management, Robert Bosch GmbH, in a company release claims, “In Dresden, with the help of artificial intelligence, we will take semiconductor manufacturing to the next level.” In June 2021, the company had announced the inauguration of Bosch Wafer Fab in Dresden, Germany. Touted as the world’s most modern wafer fabrication labs. The

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smart, future-ready factory is claimed to be fully connected, data-driven, and notably capable of selfoptimising. At the factory, the integrated processes coupled with Artificial Intelligence (AI) sets a new benchmark for industry 4.0 manufacturing as per Denner. “The new wafer fab is the single largest investment in the company’s history. This cannot be stressed too much. Its size and additional production capacity alone are impressive. The very latest methods of data-driven continuous improvement in production make the Dresden plant a smart factory. To put it another way: in this plant, natural and artificial intelligence have joined forces with the internet of things to form a productive symbiosis,” he mentions.

Smart manufacturing

Automotive chips are special grade chips. Subjected to varied and challenging operating conditions in different terrains and in suboptimal conditions, they require special expertise. As chips must meet higher standards of reliability, it translates to the development of automotive semiconductors being more

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International Wafer Fabrication

Dr Volkmar Denner, Chairman of the Board of Management, Robert Bosch GmbH

complicated than in other applications. This requires specialist expertise, and Bosch is backing itself. Harald Kroeger, Member of the Board of Management of Robert Bosch GmbH, explains, “This dual strength – the combination of chip and systems expertise – is strategically important for Bosch.” Through the new wafer fab, Bosch will continue to ensure product quality, and continuous refinement at reduced costs in line with the self-optimising capabilities of the smart, future-ready factory. With an estimated investment of one billion euros, the new wafer fab will put to use a comprehensive IT system including multiple server-driven, computer-controlled manufacturing systems riding high on automation. The applications benefit from a connected infrastructure operating at 5G speeds for a quicker turnaround and exchange of information. Wafer fabrication is expected to commence in September 2021 and is expected to boost the availability of semiconductors. “The new Bosch wafer fab will boost our capacity in microelectronics. Microelectronics is the basis for nearly every promising technology, for applications of artificial intelligence, for quantum computing, and for automated and connected driving – which is also a Bosch speciality,” stated Chancellor of the Federal Republic of Germany, Dr Angela Merkel on the sidelines of the inauguration. ACI WWW.AUTOCOMPONENTSINDIA.COM

Just 60 µm thick, the 300 mm silicon discs are the key input material for the semiconductor chips. In a six-week production process, these finished wafers accommodate 31,000 individual chips. “Our new wafer fab sets standards in automation, digitalisation, and connectivity,” cites Harald Kroeger, Member of the Board of Management of Robert Bosch GmbH. Known to be light-sensitive, it requires the chips to be developed in a highly isolated environment. The wafers are handled in an end-to-end automated fabrication process which is a USP of the factory. An autonomous conveyor system manoeuvres the wafers from one station to the other. Using multi-axis robotic arms, the wafers are dipped in specialised Harald Kroeger, liquid formulations followed by colossal microscopes Member of the Board of scanning them independently at the end of the Management of Robert Bosch GmbH production line. An AI-powered algorithm is said to detect even the slightest imperfections including image inspections, and scans of wafer signatures. To produce the semiconductor chips, the untreated or “bare” wafers are then processed for several weeks.

Dr Angela Merkel, Chancellor of the Federal Republic of Germany

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