Aftermarket - July 2012

INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

Vol. 2 No. 1 July 2012

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EDITORIAL We Are One! IT is one year since the start of your favourite magazine Aftermarket and it was a great learning for all of us in my team. With several trials and tribulations, the magazine shaped up to the level it is now. Though automotive aftermarket is perplexing, it is promising for sure, irrespective of how the mother industry, auto, performs. In fact, the aftermarket has always been growing and the only variable is the pace of its growth. History reveals that this segment has witnessed significant growth whenever the mother industry slows down.

In the first anniversary issue, we have attempted to provide you with the pulse of the automotive aftermarket as the cover story. The pluses and pain points including customers’ complaints regarding pricing, long queues and apparent lack of transparency, have been discussed. In addition, you will find articles written by industry leaders—from gadget/ component manufacturers as well as service providers. Also, there is a dedicated section—In Conversation, where industry leaders speak to you on varied issues both at micro as well as macro levels. Besides, we have special reports on garage equipment manufacturers, tyres and component manufacturers.

Dear readers, the first anniversary also marks my departure from this magazine. The Aftermarket experience has been memorable and exciting because it is the first-of-its-kind magazine in India. Initially, I must confess that I was a tad anxious when it was first conceived, but the initial impetus was enough to keep the tempo going to date. For that, I owe it to each of you for being so encouraging and supportive. Thank you for continuously giving me feedback that helped me to cater to your requirements. Also, I was lucky to have wonderful team without which, the issue would not have come as far as it has. It is Au Revoir to Aftermarket now.

Wishing you much pleasure reading. Do send us your feedback.

T. Murrali t.murrali@infomedia18.in

JULY 2012 AFTERMARKET

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NEWS

CONTENTS GUEST COLUMN

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24

20 What’s in store for the future?: Takeshi Shinmen 24 Indian Automotive Aftermarket trends: Madhur Aneja 28 Multi-brand car servicing segment: R Srivatchan

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30

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30 Multi-brand garages in India: Jagdish Khattar 34 Development of service chains: Rajeev Dubey 38

COVER STORY 14 Taking Stock On the eve of the first anniversary, we turn our focus on the forces shaping the aftermarket, its status and attempt to foresee what is in store for the future 14

Taking Stock

IN CONVERSATION

38 FADA President, Nikunj Sanghi suggests dealers to cut down their overheads without compromising on demand creation expenses and focus on services INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

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33 68 Pages `50

Vol. 2 No. 1 July 2012

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SPECIAL REPORT 10 SKF to increase products, scope of aftermarket division

SPECIAL REPORT 33 Apex automotive bodies call for curbing spurious products

Auto Monitor

Cover Design Uttam Rane Mahesh Talkar

JULY 2012 AFTERMARKET

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JULY 2012 AFTERMARKET

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SPECIAL REPORT

SKF to increase products, scope of aftermarket division Abhishek Parekh

SKF’s global aftermarket service division—Vehicle Service Market is looking to increase its product portfolio for the automotive aftermarket in India.

It is looking to have a larger footprint and have more Stock Keeping Units (SKUs) in India. It recently introduced additional range of driveshaft, constant velocity joints and boot kits.

“The two-wheeler and four-wheeler market in India has been reflecting positive growth sentiments. With multiple growth opportunities in replacement and aftermarket segment, we see this trend continuing in future. This expansion is aimed at catering to the growing demands in the automotive aftermarket across India. With this expansion, SKF will be in a position to assemble the critical components of the kits and facilitate a complete kit to the end markets,” said Director-Vehicle Service Market (VSM), SKF Group, Magnus Johansson. He added that the expansion of VSM’s activities

will further reduce the lead time for going to markets ensuring faster service to customers.

SKF's VSM division caters to the automotive aftermarket and offers a wide range of products that can be classified under the categories of deep groove ball bearings, taper roller bearings, hub units, bearing kits and other special products. The division caters to auto specialists, OE manufacturers for spares supplies, state transport undertakings and authorised stockists.

Globally, SKF VSM accounts for around 10 percent of the net sales of SKF Group and caters to the aftermarket for cars, commercial vehicles and two wheelers. It has a global footprint with offices in North America, Europe, Asia, Middle East and South America.

The key product areas for the group include wheel end and engine components sold as kits, such as wheel bearing kits and timing belt kits. A kit contains all

New products – Adding new products

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AFTERMARKET JULY 2012

Magnus Johansson, Director-Vehicle Service Market (VSM), SKF Group

the different components, accessories and instructions needed to perform a complete repair of the failed area of the vehicle. The division offers wide variety of kits including engine bearings kits, transmission bearings kits, steering race kits among others. The product range comprises around 20,000 variants. Other product offerings include enduro bearings, grease—VKG 9/xx IN, hub greasing kit–-VKA 6000/1, universal joint Kits and centre support bearing.

“Aftermarket requires much more than just a physical product and we are looking to provide technical as well as commercial support to the market. It also requires support that aims to make identifying, ordering and mounting the parts as simple as possible. In India, we see three major factors driving the aftermarket growth— total miles, repair per mile and value per repair to be very favourable for most aftermarket players,” said Johansson.

SPECIAL REPORT

“There is still a lot of untapped potential in utilising SKF's global capabilities and to transfer knowledge and product portfolios between different regions. The trend on a global level is bigger and more international distributors, mirroring to a certain extent the development we have seen with our partners in the OEM. To be successful in the future, an aftermarket supplier must able to produce global and sell local,” he added.

The markets around the world are diverse and the aftermarket usually mirrors the cultural, political and socioeconomical differences of each regions.

For instance, in the US there are few large sized distributors with up to Euro 10 billion turnover that are vertically integrated, with their own retail network and workshops. In Europe, aftermarket is structured along franchise model. There are independent distributors teaming up in big trading groups in more or less, tightly knit distributor networks due to the many different cultures, countries and languages. The networks in turn have their own garage/workshop concepts, which are normally not owned by the networks.

Latin America is closer to the European set-up, even if there are big differences also in the region itself. In China, the market is still settling and it will be very interesting to follow the development.

This expansion is aimed at catering to the growing demands in the automotive aftermarket across India. With this expansion, SKF will be in a position to assemble the critical components of the kits and facilitate a complete kit to the end markets—Magnus Johansson, DirectorVehicle Service Market (VSM), SKF Group

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AFTERMARKET JULY 2012

New Products: Value added – Wheel end

A major factor that differentiates the aftermarket character is the vehicle parc, vehicle age and vehicle value thereby creating different demands on the technical support that has to come with the products. The proportion of car, twowheelers and heavy duty vehicles are also unique to each region. For instance, the two-wheeler market is proportionally a minor market in regions like North America, Latin America and Europe compared to India and South East Asia.

Moreover, the diversity in the regions IT infrastructure is also creating variations in part distribution chain. In the US and Europe, major part of the part identification, ordering and logistics are done electronically, increasing efficiency and transparency among suppliers as well as between suppliers and distributors.

In some regions, OEs hold more than 50 percent aftermarket share while in some markets OEs have a very marginal market share and impact, according to an SKF official.

The company is looking to renew the on-going endeavour in developing its services and state-of-the-art products.

Additionally, with strong emphasis on the R&D activities, the company has been able to offer customised solutions for the different markets. The company is looking to have equal emphasis on product

availability and service delivery, according to Johansson.

The factors affecting the total miles include total vehicle parc, fuel price and distance to work or locations. Repair per mile is influenced by average operating conditions of the vehicle, age of vehicle parc and product longetivity or durability.

Value per repair is in-turn is majorly affected by component value or cost, kits and loose parts sold in the aftermarket or to Original Equipment Manufacturers (OEM). As per the company’s estimates, the total vehicle parc in India is likely to witness a Compounded Annual Growth Rate of around 10 percent in the period 2005-2014 that is lower than China’s 17 percent but higher than Eastern Europe and South America.

SKF VSM has gradually increased distribution coverage in rural areas to 300 distributors and 20,000 retailers over the last five years even as the divisional sales have doubled in the same period. The company is in the process of growing its distribution network. It reckons that most distributors are looking to partner with companies having full range of products, uninterrupted availability of parts, right pricing and positioning in the market. Most workshops, in addition to above factors, also look for training and information on ‘correct’ repair procedures.

COVER STORY

Taking Stock

Team Aftermarket

THE automotive aftermarket segment was a thriving, and perhaps perplexing business when we commenced our eorts around a year ago. It has not lost any of its charm since and continues to be challenging for most local and growing number of global players. What makes the business interesting is the unabated expectations of end customers for value in price, service, expertise and combination of these three prepositions.

Few players can claim to oer any of these three or any combination thereo.

Even as the country has grown to be one of the largest and fastest growing vehicle markets globally, the character of the aftermarket has continued to be

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AFTERMARKET JULY 2012

essentially the same as had been a decade ago. Though the market has expanded to include several organised multivehicle garages, regional scale spare parts distributors and retailers, the business continues to driven by the OE’s agenda with authorised service continuing to be focal point for customers and spare parts suppliers, especially passenger car segment.

Moreover the aftersales and parts distribution infrastructure for commercial vehicles and two-wheelers continues to be largely unorganised with very little or no role played by OEs. Even as aftersales servicing is yet to ďŹ nd its feet, parts suppliers are increasingly looking

to play a larger role, by themselves, in reaching out to the customers through innovative distribution models. Global parts suppliers are also looking to have a larger role and better control in the aftermarket through dedicated and focussed distribution of parts.

As per some estimates, the passenger car service market in India is estimated to be anywhere between `15,000 to `20,000 crore currently, and OE dealers and authorised service centres form the bulk proportion.

According to Former Managing Director of Maruti Suzuki, Jagdish Khattar, the share of OEMs, neighbourhood garages, and

COVER STORY

independent chains is one-third each in most developed countries. However, the Indian market has yet to witness this diversity as independent chains have a negligible share. He expects independent service chains to cater to around 20 percent of the car servicing market by 2015.

He is quick to point out that there is no competition between the various players in the aftersales car repair and second hand car markets. With increasing demand and the growth of third party multi-brand garages, customers are getting more options to suit their needs.

Trust and capability appear to be major factors at this stage as far as multi-brand garages are concerned.

It may be awhile before they can win customer confidence. Market watchers point out that these third party garages, organised and smaller players alike, can grow quickly if they can address the current problems and pain points of car owners. For instance, customers often have complaints regarding pricing, long queues and apparent lack of transparency at OE authorised service stations. MultiBrand Operators (MBOs) can address these issues if they can build scale and manage to deliver superior customer

experience uniformly across the network.

The one factor that could favour the growth of the MBOs is the relative reluctance of OE dealers to expand aggressively in times of slow growth for that particular brand due to high capital expenditure requirements and high OE expectations. However the MBOs have the advantage of looking at the overall growth of the auto industry, which is relatively more stable, for their expansion.

Moreover, Tier III cities are underserved by the OE brands on standalone basis, which presents a good opportunity for MBOs as they look at the combined load of all the brands put together. However they have to take care of the problems of scarcity of skilled manpower and spare parts logistics, which become pronounced in these far flung locations, as an official at a leading MBO points out.

Parts suppliers, too, are looking to address the market fragmentation in their own way. The present distribution chain is highly fragmented with the involvement of multiple intermediaries—distributor, wholesaler, retailer, mechanic and several small independent ‘suppliers / carriers’ creating inefficiencies within

The present distribution chain is highly fragmented with the involvement of multiple intermediaries—distributor, wholesaler, retailer, mechanicsF and several small independent ‘suppliers / carriers’ creating inefficiencies within the system

A big deterrent in aftermarket currently is the lack of adequate infrastructure to service the new generation of vehicles. Vehicle sales have far outpaced the establishment of new garages to service the millions of new vehicles that hit Indian roads every year. While OEMs are doing their bit to expand their service stations, they are yet to catch up the system. While the margins at each step of the chain are not very high, the multiple steps cumulatively add up and result in escalation of end consumer acquisition cost.

“We have been looking to put a robust IT backbone in place, which will allow our field force to spend more time with customers and provide market feedback rather than spend time doing any market analysis or MIS (Management Information System). The support staff has been trained to analyse data and provide intelligent feedback and support the field staff thereby increasing efficiency of the system as a whole,” said Vice President-Corporate (Aftermarket), Anand Group, Sachin Puri in an earlier interaction with Aftermarket.

The support model, akin to banking IT backbone, may become a key differentiator for the group going forward. TVS Group, on the other hand, has been increasingly relying on healthy mix of owned and franchisee retailers/distributors with support of IT infrastructure to provide ever growing number of SKUs at various depots and working on efficient supply

JULY 2012 AFTERMARKET

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COVER STORY

Customers often have complaints regarding lack of transparency at OE authorised service stations. MBOs can address these issues if they can deliver superior customer experience uniformly across their networks chain to meet its objective.

Aftermarket distribution chain for most part suppliers is expected to get consolidated through rationalisation of intermediaries in the coming years, according to market players. Companies across the value chain will have to improve on their competence, and enhance capabilities to produce parts for and to service a wider variety and complexity of vehicles.

While the number of steps in the value chain are bound to reduce to enhance service levels and offer customised products to their respective customers, each step will need to add more value through higher investment in infrastructure, IT tools, professional management among other enablers. Thus end consumer will get a better product /

service and simultaneously, the limited number of professional intermediaries will also earn higher margins. A cascading effect on this model, over a period of time, will result in a better balance within the value chain.

A big deterrent in aftermarket currently is the lack of adequate infrastructure to service the new generation of vehicles.

Vehicle sales have far outpaced the establishment of new garages to service the millions of new vehicles that hit Indian roads every year. While OEMs are doing their bit to expand their service stations, they are yet to catch up.

Roadside mechanics in the aftermarket can no longer service the new generation vehicles and their complex engines, according to Vice President, Asia Pacific, Federal-Mogul, Madhur Aneja.

The support staff has been trained to analyse data and provide intelligent feedback and support the field staff thereby increasing efficiency of the system as a whole

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AFTERMARKET JULY 2012

He added that major investments in the service infrastructure upgradation in the aftermarket in service stations has thus become necessary. While the big investments to set-up large service stations may take time, a possible way ahead could be setting-up of smaller centres that cater to specialised jobs like brake, suspension and body & chassis.

He pointed out that the two-wheeler and three-wheeler market has opened doors for several foreign and local players to expand their aftermarket product and services portfolio and meet the present demand, and consequently has pushed them to cater to the market with customised products and services that meet the unique demands of this market segment. However, like all expansion plans, penetration into these alternative segments comes with its own share of issues such as the requirement of huge investments and time to set-up shop as well as recruiting and retaining skilled manpower.

Automotive aftermarket has reached a certain level of maturity, which had compelled Auto Monitor to take-up the challenge a year ago to provide our readers with a dedicated source of information for this rapidly growing automotive sector. The journey so far has been enriching but there are many unfulfilled objectives and we would be looking to achieve them as we go along.

SPECIAL REPORT T

Government wields duty extension against tyre dumping Nabeel A Khan

THE Anti-Dumping Duty (ADD) levied on imports of non-radial tyres from China and Thailand has been extended for another few months by the Government of India. Although this is positive for the industry, the increasing import continues to raise concerns, the apex body of Indian tyre industry, The Automotive Tyre Manufacturers Association (ATMA) said.

The Department of Revenue has said “It shall remain in force up to and inclusive of 7 October, unless it is revoked earlier.” The extension comes in the wake of Commerce Ministry’s Directorate General of Anti-Dumping and Allied Duties had initiated a review in August last year.

Globally, dumping is treated as an unfair trade practice. Tyres have and continue to be dumped in India. Hence, following a petition filed by the domestic tyre industry, ATMA—and based on a detailed investigation by the AntiDumping Directorate—the government have decided to impose anti-dumping duty on bias, and later, radial tyres for trucks and buses.

“At the time of its imposition, the duty did help in lowering the volume of imports. However, based on actual experience, import volumes have again started increasing in the recent past and are a matter of concern for the domestic Industry.” Director General, ATMA, Rajiv Budhraja told Aftermarket.

The ATMA says that ADD is not to be viewed from the perspective of any benefit for the domestic industry of loss

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AFTERMARKET JULY 2012

from the overseas manufacturer/exporter.

It is an unfair practice, which not only impacts the domestic industry adversely, but also deprives the government (of importing country) of loss of legitimate revenues besides distorting the market.

The government move may not give much impetus to the expansion plans of tyre manufacturers these are not linked to the anti-dumping duty. More so, since the past experience (of a number of sectors / product groups) indicates that while ADD was instrumental in

Globally, dumping is treated as an unfair trade practice, yet

Rajiv Budhraja, Director General, Automotive Tyre Manufacturers Association (ATMA)

tyres continue to be dumped in India. Hence, following a petition filed by the domestic tyre industry, ATMA and the government have decided to impose anti-dumping duty on bias, and later, radial tyres for trucks and buses

lowering the volume of imports for some time, over a period of time the increase in volume, in absolute as well as percentage (YoY ) terms does take place.

Even the ADD rules provide for MidTerm Review (MTR), SunSet Review

(SSR) and New Shippers’ Review (NSR), under which, the ADD can be removed, enhanced/lowered or exempted for certain exporters (who were not exporting at the time of initial imposition of ADD).

“For any domestic manufacturer to go in for capacity expansion or investment based on status of the ADD would be taking a rather simplistic assessment for a decision, which is based on a number of other important factors (viz. growth in demand, existing capacity, overall performance of that sector/ industry domestic & international markets).”

Budhraja added.

The anti-dumping duty imposed will remain in force up to and inclusive of 27 March, 2013 unless the notification is revoked earlier. The duty on wheels was imposed on 29 March, 2007.

GUEST COLUMN

THE whole industry is eagerly trying to foresee the future of aftermarket in India as far as in-car entertainment is concerned. I would rather look at this subject by comparing the behaviour of Indian consumers over the years. As every research is based on the middle-class consumer behaviour, as the middle-class consumer is considered as the pillar of the booming economy, I would also like to follow suit.

Let’s look at general behaviour of an average middle-class consumer over the years—slowly htey are moving away from the corner

TAKESHI SHINMEN, Senior Manager, Kenwood India Liaison Office

stores for their daily needs, towards the more comfortable “everything under one roof” malls. Even though, this doesn’t completely wipe out the sustainability of corner stores, as they still pull customers. If you map the same situation to the in-car entertainment scenario, the trends are showing that OE fitments are increasing as the days go by. Even in smaller cars, the OE fitment percentage is increasing. Accessory shops inside car dealerships (we technically call them as DOP—Dealer OPtions) will be getting more business in the coming days, as customers are opting for more of the ‘C’ factors: Comfort during the installation process, which

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AFTERMARKET JULY 2012

GUEST COLUMN

Growth and development of in-car entertainment aftermarket in India: What’s in store for the future?

the dealerships must provide; Conf idence, which we cultivate, especially when the installation is being executed by the car dealership and under the supervision of the people who are providing cars; Cost, wherein, customer perceptions are transforming and today, they are ready to pay a premium for the Comfort and Confidence factors they are enjoying with the dealership.

There has been an increase in the entries of sophisticated car companies in the Indian market following the growing awareness of the importance of in-car entertainment. They started competing with each other by providing audio/ video systems with advanced features, as OE fitments/DOP. The USB feature has become the basic necessity for any audio system provided by car companies. Some of the middle-range cars in-built with Bluetooth facility while some high-end cars are even loaded with touchscreen navigation systems as OE fitments.

Car companies are conducting thorough research to understand the needs of the customers from time-totime and are compelled to improve the

quality and features of the entertainment systems that they are providing.

There is another school of thought prevailing in this area. There will be a gradual drop of aftermarket sale of in-car entertainment systems. Th is is because, as long as car companies cannot placate the growing “thirst” of consumers through their OE fitments, which as of now have limited features, consumers will look for replacements for which, they will approach the DOPs or the aftermarket. Yet, there is much hope for the extended life of the aftermarket business.

Citing the above reasons of increase in OE and Dealer Option Business (DOB), it seems like the future of the aftermarket business is slowing down and will further go down in the coming years, especially if you very seriously follow and understand the examples in the other parts of the world. As I have mentioned earlier, the aftermarket can never die, as car audio companies can target select aftermarket dealers as their flagship dealers—not exclusive ones, but more concentrated on a particular brand visibility. While

having such flagship dealers, they can have more “add-value services” like better

Entry of more sophisticated car companies into the Indian market has started increasing, especially after understanding the importance of in-car entertainment. The USB feature has become a basic necessity for any audio system provided by car companies. Some of the mid-range cars are coming with an inbuilt Bluetooth facility and some high-end cars are even loaded with touchscreen navigation systems as OE fitments

JULY 2012 AFTERMARKET

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GUEST COLUMN

installation using professional methods, usage of state-of-the-art tools, wiring and technology for installation. This could earn more respect and confidence from the customers.

The United States is a fine example of this, as many specialty stores in that country have become real success stories.

In India also, such possibilities can be very well explored as the customers, however cost-conscious they are, can pay extra if they are receiving value-added services. If proper training could be provided to such flagship dealers, they can even educate customers, by comparing products, through sound tests or some other mechanism so that customers can have a hands-on experience before the entertainment systems are fitted into their cars.

I strongly feel that such experiments can be done in India, and India can evolve as a model market for the other Asian markets. Compared to many other mature

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The Indian market is completely different when you compare with other world markets or for that matter with other Asian markets. I feel that India can stand alone as an example in the case of aftermarket sustainability, even when all the other parts of the world are looking the other way markets like Japan (where navigation market is almost 92 percent), some of the European markets are almost saturated and possibilities of experiments are near to impossible. On the other hand, India,

with a variety of interests and still a lot of untapped areas left, can extend the life of the aftermarket further.

Personally, I like the Indian market very much, the consumer behaviour over the period of time, brand consciousness among the consumers, ability of consumers’ to understand the importance of features, their love for good quality sound—all of these are highly appreciated. India is a vast country with broad tastes, a rich cultural heritage, and a number of languages, and inspite of the diversified tastes and imagination of the consumers, each one of them attempts to understand the product that they are buying. This is the quality that I am seeing among the Indian consumers across the board.

The Indian market is completely different when you compare with other world markets or for that matter with other Asian markets. As mentioned above, as this market is close to my heart; I feel India can stand alone as an example in the case of aftermarket sustainability, even when all the other parts of the world are looking the other way.

My passion for Indian market will hit another high if that happens in the future, let there be another reason for my love and affection for the Indian consumers.

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INDIA is home to nearly 100 million vehicles, and the automotive sector is one of the economy’s key drivers.

The Indian automotive market is among the few that saw record sales across all segments despite the recent global downturn.

A large portion of India’s automotive prof its and thriving success can be attributed to its flourishing aftermarket segment. The automotive aftermarket is poised for solid growth and as per McKinsey & C o m p a n y, estimated to reach `39,000 crore to `44,000 crore by 2015. Given the current trends

MADHUR ANEJA, Head-AM Sales, Federal-Mogul

and improving industry standards, the Indian automotive aftermarket segment is bound to witness major structural changes over the next five to seven years.

Today, the importance of consumer costs for aftermarket parts is greater than ever, since it inf luences the consumer’s buying decision. Th is in turn has increased the pressure on component manufacturers and channel partners to raise the bar by providing consumers with a wider choice of high quality products and services. In order

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Indian Automotive Aftermarket: What’s In Store? to keep the momentum going and to ensure a lucrative future for India’s automotive aftermarket; manufacturers, suppliers and independent dealers will need to improve efficiency and scale of operations. Taking into consideration the factors at play in the Indian market, enhancing efficiency and operations will require the following factors: Consolidation Of Multi-Step Distribution Model The Indian aftermarket value chain

A big deterrent in aftermarket today is the lack of adequate infrastructure to service the new generation of vehicles. Vehicle sales have far outpaced the establishment of new garages to service the millions of new vehicles that hit Indian roads every year. While OEMs are doing their bit to expand their service stations, they are yet to catch up

is extremely complex and fragmented with involvement of multiple parallel and many times, even criss-cross distribution channels. Unlike developed countries, OEMs in India largely have their own distribution model and sell spares (OES) through directly-owned or franchised service stations.

The present distribution chain is highly fragmented with the involvement of multiple intermediaries—distributor, wholesaler, retailer, mechanic and several small independent ‘suppliers / carriers’ creating inefficiencies within the system. While the margins at each step of the chain are not very high, the multiple steps cumulatively add up and result in escalation of end consumer acquisition costs.

Th is distribution chain is expected to get consolidated through rationalisation

of intermediaries. Companies across the value chain will have to improve on their competence, and enhance capabilities to produce parts for and to service a wider variety and complexity of vehicles. While the number of steps in the value chain is bound to reduce, to enhance service levels and offer customised products to their respective customers, each step will need to add more value by way of higher investment in infrastructure, IT tools, professional management etc.

Thus the end consumer will get a better product / service and simultaneously, the limited number of professional intermediaries will also earn higher margins. The cascading effect on this model, over a period of time, will result in a better balance within the value chain.

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Investment In Point of Sale & Vehicle Service Centres A big deterrent in aftermarket today is the lack of adequate infrastructure to service the new generation of vehicles.

Vehicle sales have far outpaced the establishment of new garages to service the millions of new vehicles that hit Indian roads every year. While OEMs are doing their bit to expand their service stations, they are struggling to catch up. Roadside mechanics in the aftermarket can no longer service the new generation vehicles and their complex engines. This necessitates major investment in the service infrastructure in the aftermarket at service stations. While the big investments to set-up large service stations may take sometime, a possible way ahead could be setting up of smaller centres that cater to specialised jobs like brakes, suspensions and body & chassis.

Similarly, it is likely that we will see emergence of larger players at the retail and wholesale level. Significant investment is required to start the trend of emergence of larger stores, and possibly chain stores, that stock genuine parts and offer a wider choice of products and services to consumers in a friendlier ambience.

Promote Usage Of IT Tools At a global level, several major players have adopted ‘IT tools’ as a strategic business asset, using them not just for cost reduction but for overall business

While e-commerce is widely deployed in other industries, the potential of this has yet to be exploited in the Indian aftermarket.

Also, as the deployment of online tools in aftermarket could change the rules of the game, implementation of this is dependent on various other factors including the implementation of a harmonised GST regime in India growth and improvement of customer experience. In India, while this trend is quickly catching up, at present, the adoption and usage of IT across the automotive manufacturing and supply community is relatively low, with the exception of few foreign players who have brought EDI (Electronic Data Interchange) standards and tools with them into the country. While auto majors have been using various IT tools in their manufacturing cycles, they have now started deploying the usage of new systems in their distribution and supply chain management to add to their

operational efficiency and to enhance customer experience.

Upgrading India’s automotive aftermarket to global standards does not stop with just implementing IT tools, but requires the distributors and retailers to be educated and trained about scientific inventory management, deployment of IT systems and professional management.

While e-commerce is widely deployed in other industries, the potential of this has yet to be exploited in the Indian aftermarket. While deployment of on-line tools in the aftermarket could change the rules of the game, implementation of this is dependent on various other factors including the implementation of a harmonised GST regime in India.

Wider & Deeper Market Penetration Some of the bigger and established players are now looking to expand their business by entering smaller towns and rural markets, where there is significant growth potential especially in the twowheeler and three-wheeler segments. Low operating costs, higher fuel efficiency, lower maintenance costs, ease of use within town limits and affordability are among the many factors to a booming two and three-wheeler market in these markets. Further, improvements in road infrastructure and inter-city road transport has increased the scope for more service outlets on highways.

This thriving two-wheeler and

(Below & Following Page) A Range Of Federal-Mogul Products

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three-wheeler market has opened doors for several foreign and local players to expand their portfolio and meet the present demand, and consequently has pushed them to cater to the market with customised products and services that meet the unique demands of this segment. However, like all expansion plans, penetration into these alternative segments comes with its own share of issues such as the requirement of huge investments and time to set-up shop as well as recruiting and retaining skilled manpower.

Curbing Counterfeits Counterfeiting of spare parts, components and accessories is a growing menace, and runs parallel to the genuine spare parts business in India. The magnitude of the problem is huge, estimated at 36 percent of total aftermarket spares sold today.

Various factors have contributed to its rise—lack of availability of an extended warranty, short replacement cycle of certain parts, limited access to service centres, mushrooming of smaller unauthorised garages, loose ends in the legislative system etc.

Another major factor is the existence of a large network of unorganised distribution channels, fragmented and local mechanics.

Spurious parts compromise the safety of the vehicle, putting lives in danger.

As per studies conducted, 20 percent of road accidents are attributed to use of fake parts, a serious problem especially when we consider the 1.4 lakh deaths due to road accidents annually.

Counterfeits not only tarnish the brand name but their usage also translates into a revenue loss for the industry and tax loss to the government.

In addition to the economic impact, counterfeit products have major impact on environment—fake parts result in 10-15 percent increase in vehicle pollution and

also result in higher fuel consumption.

As the problem is deeply rooted in the system, lowering prices of spare parts or accessories is not the best solution to curbing counterfeits.

Rather, manufacturers need to increase awareness among consumers against the purchase and usage of fake parts. Several players are already engaged in a number of anti-counterfeit initiatives such as active customer education programmes through display of original and fake parts at dealerships, regular unannounced visits to service centres/outlets, etc.

ACMA’s consumer forum is waging a war on counterfeits—more than 400 establishments have been raided and action taken against offenders in the last 24 months. However, all these measures will prove pointless without the support of the government. Amongst other things, modifications need to be made by the government in the Indian Motor Vehicles Act so as to expand the purview of the Act to include the auto parts sold in the independent aftermarket in addition to the fully assembled vehicles.

India’s automotive aftermarket has a number of favourable factors that

will positively impact the sector over the next few years. While OEMs and OES’ have the advantage of an existing well established network to continue widening their business, they need to gain a strong hold of the market. OEMs can create a defined market position for themselves by taking on concentrated efforts in network expansion. Similarly, independent players need to scale-up operations through forward integration, creation of generic brands and global sourcing. However, though present industry margins look positive, players across the value chain need to sustain profitability, and it is imperative that the players focus on offering customers enhanced products and services, upgrade skill through education and training, widen networks through forward integration and collaborations, etc.

The vast pool of opportunities and scope that India’s automotive aftermarket holds has paved the way for large scale transformation and has created enormous prospects for all those involved in this space. Thus it is fitting to say that the future of India’s automotive aftermarket looks more than promising.

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MULTI-brand aftermarket service workshop—most car owners would have found it difficult to comprehend the exact meaning of the words a decade ago. Thanks to the exploding automobile market, increasing disposable incomes, multiple models and variants, and the growing cost and service issues coming up in choked authorised workshops have led to multi-brand servicing as a preferred and

R SRIVATCHAN President, TVS Automobile Solutions Ltd

credible alternative today.

For the benefit of first time readers let me put it simply that it means a workshop where consumers can walk in with a vehicle of any brand for any kind of repairs.

When I look back and try to gauge from my two decades of experience in the automobile industry as to what has been the genesis of this concept in India (abroad, it has been existence since ’60s), I can primarily attribute it to two factors: Liberalisation in the ’90s and awareness of customer-centric business models during the following decade.

I recollect advertisements of a multinational automobile giant that positioned its pan-India service workshops availability as a differentiator.

Needless to say, it had been a huge success. However, soon it was observed that the company started falling in the eyes of customers.

Global brands and models came in during late ’90s and brought with them a flurry of customer oriented terminologies:

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Opportunities galore in multi-brand car servicing segment customer centricity, customer satisfaction, customer experience, encircling the customer and what not.

Right they were, in understanding that the customer is king. The idea percolated from OEMs to dealers to independent garages and even to customers. Suddenly, OEMs were in for a challenge on how to satisfy the new informed, aware and value for money Indian. Challenges must have been plenty towards satisfying the customer: multilingual market, different cultures, availability of land for setting-up workshops, extensive capital requirement, FDI rules, to name a few.

This challenge brought along with it a globally tested and successful solution in the way of multi-brand service workshop.

Multi-brand chains of service workshops have been in India since the mid of last decade. However, the last couple of years have seen a flurry of activities in this sector. Several multibrand workshops have sprouted across the nation—MyTVS, Mahindra First Choice, Carnation, Carz, etc. PE funds have played a pivotal role in grooming this sunrise sector. It has changed the entire look and feel of service workshops.

Gone are the days when you have to be at the mercy of the moods of self proclaimed vehicle experts; be ready to forget your vehicle for a couple of days and/or even take leave and spend half day in a grease and dirt covered bylane workshop and dare not ask any explanations for charges on the bill. And wow! What do we have today?

Garages, have started coming up on the main streets, have a wider frontage, present a bold and good look, airy, epoxy floored reception areas and offer chilled beverages to visiting customers, LCD TVs that beam channel programmes even in empty lounges, and enjoy services of well dressed ‘advisors’ and so on.

Much has changed even beyond these cosmetics. Also, the customer is apprised about the details of the repairs being carried out—cost estimates with labour and part details are provided to him before commencing the job. Moreover, he can walk into the workshop and see how his car is being treated. Modern equipment and facilities like wheel aligners, balancers, body repair systems, MIG welders, dent pullers, special tools, paint booths, etc. are available for executing the repairs.

As per the ACMA statistics, the current Indian aftermarket stands at `330 bn, inclusive of CV, 2W, 3W and cars (labour & parts) and vehicle parc at `97.7 mn as on last year. These figures throw open a slew of opportunities for organisations, entrepreneurs and technicians alike. Globally this market is at $one trillion and is poised to grow at five percent year-on-year.

However, this beautiful canvas still has several patches that need attention for healthy growth and sustenance: • Spurious and fake auto parts command a significant share in the aftermarket, which leads to huge government losses • Fake parts bring down the life of vehicle and exposes vehicle owners to

safety risks • Much has been done, still a lot needs to be covered in terms of geographical spread • Lack of availability of specialized diagnostic tools to aftermarket and independent garages • Optimisation of the workshop size • Increased access to manuals • Restriction in supply of critical components Needless to say, that industry is aware of the above issues, and rightful measures are being taken to address the above points. It may take time but in the end customer would always come out the winner, as ‘He is the King’.

The share of organised aftermarket is poised to grow to five-seven percent in next five years. More companies are joining the race and targeting Tier II or Tier III cities in conjunction with metros.

The sheer size of the parts demand would make it possible to obtain quality parts from countries like Korea, Thailand, Japan, etc. at a fraction of current prices.

Also, training academies for workers are helping them hone their skills towards repairing multiple brands. Pilot models and previous experience have changed the approach towards setting up a workshop.

Indepth market research and consumer behaviour mapping is carried out before setting it up.

I foresee an environment where organised aftermarket players, independent workshops, OEMs and parts suppliers would be working in a symbiotic relationship to gain maximum from the available opportunities.

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History Of Car Servicing Neighborhood car garages have been around forever, while third party multibrand car service garages have until some years back gained ground over the regular third party garages where the car service needs of a family are concerned. If my statistics is correct, then there are currently over 20,000 garages in the country,

JAGDISH KHATTAR, CEO & MD, Carnation

servicing every brand of car available in India.

With time however, technology has changed, not just the way cars are built, but also how they are serviced and repaired. There has been a growth in skilled manpower in the country; compared to unskilled.

Also, the quality of cars, in general, has improved over the years and with that the demand and availability of company manufactured spare parts as well and equipments to service such cars.

Steady developments coupled with the increase in demand and supply of cars on the growth path, the need for a

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Growth And Development Of Multi-Brand Third-Party Garages In India: What’s In Store For The Future? one-stop reliable place for all the needs of an automobile is rising; be it quick repairs, change of parts, or major repairs, as a natural progression to that need. This was transition time for the aftersales car market in India. It was also a time when third party multi-brand garages were coming up and the monopoly of OEMs through their authorised dealerships was waning. However, the OEMs still held ground when it came to sales and availability of their spares in the open market.

I firmly believe that every Indian car owner has the right to get genuine spares for their vehicle, whether they choose to get their car repaired at the OEMs dealership or at a third party multi-brand garage like Carnation. This is where the gap was. Also, this was an excellent business opportunity for thirdparty multi-brand garages to enter the business. And the idea of Carnation was born out of this need.

Third Party, Multi-Brand Garages In The Changing Market Scenario Third party multi-brand garages give healthy competition to the other two kind of aftersales car service options in our country. With more of such car service stations coming up, customers will experience a whole new way of car servicing, one which will be professional, customised, and reliable.

Carnation is an attempt on my part to initiate integration of multi-brand car service offerings across entire India.

Therefore, today Carnation is more than a regular car garage; it is a one-stop-shop for all car related needs.

Following Carnation’s lead, few other players have also entered the market and the market sentiment has even made investors realise the huge business opportunity that’s waiting to be explored.

Having gained investors’ confidence, we hope to be a leader in this segment by providing a bouquet of car related services and not restrict ourselves to the brick and motor platform. Considering that today’s urban customers require more value added services, over and beyond the regular ones, we have taken many first steps for the same.

Our e-Commerce portal, www. carnation.in intends to cater to such need

I firmly believe that every Indian car owner has the right to get genuine spares for their vehicles, whether they choose to get their car repaired at the OEMs dealership or at a third party multi-brand garage

and use technology to fulfill post purchase needs of car buyers. The internet offers a level playing field to everyone and hence, it is a fantastic medium to reach out to a wider target and we hope to utilise its reach to the optimal. Internet is not just helping businesses reach their audience, but also ensuring that customers are more educated and knowledgeable when it comes to make purchase decision.

Growth And Development Prospects Of This Sector With more than one family member owning a car today and not having the time to get the car serviced at the garage himself, there is a need to offer this service right at their doorstep. At Carnation, we recognised this need and hence the idea of Workshop on Wheels (WoW) was born.

WOW is a unique car service facility that helps urban families get their cars serviced right at the doorstep, allowing more family time. Plus, there is the advantage of getting all the cars in the family serviced from one single car service provider. And it’s more to do with reliable and trustworthy services, rather than the price as many would like to believe.

Third party multi-brand garages are a good option to get accidental repair done.

Since the focus is more on repair, both customer and insurance companies stand to benefit. Unlike unorganised garages transactions in third party garages are

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managed better, which again makes it easier for insurance companies to deal with.

Thus the customer gets the advantage of cashless repairs, better infrastructure, focus on repair of cars rather than replacement, and cost saving.

Factors For Growth In developed countries, the share in terms of car servicing between OEMs, neighborhood garages, and independent chains is one-third each.

Currently in India, independent chains have a negligible share, but one that is expected to grow at 20 percent by 2015.

The same is true for second hand cars market as well. While only 10 percent of the used cars market is organised, mostly pre-owned cars are sold through brokers spread across the country, with no credible parties to give assurance to either the buyer or the seller. As users understand the concept of buying used cars, the overall pre-owned car segment

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is expected to see a growth of 16-18 percent, and the organised used market is estimated to grow by 40 percent.

Equipment suppliers have always been there and are growing with the rapidly expanding business. They work according to the need of the OEMs. With upcoming of third party garages, their business gets more opportunities.

There are a number of factors which will work towards the growth of third party multi-brand garages in India. With time, more and more chains are entering the field. We are familiar with examples of MyTVS, Mahindra First Choice and others. With increasing awareness being created by new entrants in the field, the confidence of the audience towards approaching third party garages is increasing.

Availability of skilled manpower, which was earlier an issue, has now improved. Also, the availability of spare

parts has improved with large third party garages setting up-better and streamlined processes for procurement of original spares. Customers have welcomed this initiative. With the rise of good third party garages, many have moved from dealerships to this, more customer-centric, solution. Besides quality and experience, here the customer is looking forward to reasonable charges; transparency and also a host of needs for their cars.

Finally, I’d like to say that I do not believe there is any competition between the various players in the aftersales car repair and second-hand car markets.

With increasing demand and the growth of third party multi brand garages, customers are getting more options to suit their needs. And that’s a good thing for everyone involved. A demanding customer helps keep service providers focused and allows them to ensure high quality of service every single time.

SPECIAL REPORT

Apex automotive bodies call for curbing spurious products Our Bureau

AUTOMOTIVE Component Manufacturers Association of India (ACMA) and Society of Indian Automobile Manufacturers (SIAM) jointly held a seminar on World AntiCounterfeiting Day in Delhi recently.

The two apex bodies of has called for immediate government intervention for amendments in the existing legislations to contain sale of counterfeits.

“As per industry primary research findings, counterfeit sales is attributing to a loss in government exchequer to the tune of `31 billion per annum with an employment loss estimated over 1.15 million jobs; consumption of additional 109 million litres of petrol and eight million litres of diesel per annum. The use of counterfeits resulted in 25,400 deaths and more than 93,000 injuries in 2009” said President, ACMA, Arvind Kapur.

Spurious auto parts are growing steadily in the country and currently, counterfeit products account for 36 percent of the `330 billion Indian aftermarket. The industry has shared and advocated the global concern counterfeits have on the trade and economy of a country. Speaking on the automotive sector, Joint Secretary, Ministry of Heavy Industries & Public Enterprises, Government of India, Ambuj Sharma called for a need for improvement in enforcement measures through establishment of special courts that could specifically address the issues of counterfeiting.

He also stated that his ministry along with The Ministry of Road Transport and Highways was already working

Ambuj Sharma, Joint Secretary, Ministry of Heavy Industries & Public Enterprises, Government Of India

Counterfeiting – A Challenge

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THE auto industry has long back come out of the ‘waiting period’ era.

The choice of brands and variants available for the customers is huge and most of them are available off the shelf. However, the car servicing industry is still in the process of catching up. The consumer has to wait for days to get a service appointment with an OE dealer and does not have a viable alternative or choice other than going to the local garage, a little reluctantly. This is going to change

RAJEEV DUBEY, President, After Market Mahindra & Mahindra Limited & Member of Group Executive Board

in the near future with the entry of Multi-Brand Organised Service Chains that promise to change the passenger car servicing industry landscape for the better.

The passenger car service market in India is estimated to be anywhere between `15,000 and `20,000 crore today and is growing at a decent pace due to the growth of the auto industry. Currently, this industry is dominated by OE dealers and authorised service centres on one side and independent local garages on the other side, each commanding close to 50 percent market share. However, if you take out the under warranty service requirements (which is captive demand in a sense for OE dealers and authorised

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Growth and Development of multi-brand service chains in India service centres) majority share of around 65 percent is held by local garages.

If one looks at developed countries in the west, the market share of all three segments of the industry are almost equal.

This means the Multi-Brand Operators’ (MBO) market opportunity could be pegged at `6,000 crore. This, by any means is a large enough opportunity to entice big names into this segment of the industry along with private equity players and venture capitalists.

Current Status Most of the multi-brand organised service chains were established about four years ago in 2008, but are yet to make a big mark in terms of market share. However, they have developed a growing sense of awareness of the car owner’s mind and the service chains are ready to make a difference in terms of

service quality and customer experience.

Only MyTVS has been in existence for ten years and is yet to taste big success.

Mahindra First Choice Services and Carnation set-up shop at almost the same time followed by Carz in Hyderabad. Carnation has been the most aggressive of the lot and established 25 large sized COCO (Company Owned Company Operated) outlets across the country. MyTVS was the first to venture into the franchisee system with 15 COCOs and 50 franchisees, mainly in South India. Mahindra First Choice Services has been cautious in its approach and has experimented with around 15 outlets—a mix of COCOs and franchisees—across India and are in the process of aggressive expansion. Carz has opened less than 10 outlets in AP and Bangalore so far. However, the combined market share of all these players is quite insignificant.

For MBOs to succeed, they have no choice but to consistently deliver on the following factors affecting customers directly ie service quality, competitive pricing, timely delivery and above all, trust and transparency

Competitive Status The OE dealers have the backing of quality perception and genuine spare parts to help them command better pricing and margins. The independent garages play the game on low pricing and convenience and lay emphasis on building customer relationships. The MBOs are trying to offer the best of both worlds in terms of good service quality combined with lower pricing, as compared to the OE dealers.

Several industry experts believe that

whoever manages to provide a better customer experience will finally emerge as the winner.

Growth Prospects MBOs can grow quickly if they can address the current problems and pain points of car owners. In the case of OE dealers, complaints relate to pricing, long queues and apparent lack of transparency.

With independent garages, car owners face the problems of service quality, lack of infrastructure and again certain lack of trust. Can multi-brand operators address these pain points effectively and make their fortunes out of this scenario? They can do it only if they can build scale and manage to deliver superior customer experience uniformly across the network.

The one factor that could favour the growth of the MBOs is the relative reluctance of OE dealers to expand aggressively in times of slow growth for that particular brand due to high capex requirements and high OE expectations. However the MBOs have the advantage of looking at the overall growth of the auto industry, which is relatively more stable, for their expansion.

Typically, Tier III cities are underserved by the OE brands on standalone basis, which presents a good opportunity for MBOs as they look at the combined load of all the brands put

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together. However they have to take care of the problems of scarcity of skilled manpower and spare parts logistics, which become pronounced in Tier III cities.

Critical Success Factors For MBOs to succeed, they have no choice but to consistently deliver on the following factors affecting customers directly ie service quality, competitive pricing, timely delivery and above all, trust and transparency. They have to invest heavily in infrastructure and the latest diagnostics and lay heavy emphasis on training and standardisation processes.

On top of all this, they have to build their brand equity over a period of time by consistently delivering on their brand promise.

Challenges, Risk Factors & Possible Mitigation The auto and retail industry faces the biggest challenge with respect to the availability of skilled manpower—both technical hands and customer facing staff. They have to find their own way of managing this situation and probably have to rely on generating their own supply of fresh but internally trained manpower. Lack of availability and lower margins of spare parts, especially parts used in the body shop like skin panels and other big parts, which are typically

The auto & retail industry faces the challenge with respect to the availability of skilled manpower— both technical hands & customer facing staff.

Lack of availability & low spare part margins is another challenge for MBOs

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MBOs are a big success in developed countries.

There are also recent research reports that indicate that the general preference for MBOs is growing among consumers and is

MBOs are trying to circumvent this issue by franchising their operations.

This will work well provided they offer substantial value to the franchisees in terms of training, brand value and a low break even point. Franchisees also expect support from the principal for the first year or so till the time they do not turn profitable. Venturing into franchising without addressing these issues first is fraught with danger.

becoming all the more pronounced in tough times like recession. The propensity to spend more at MBOs is apparently also growing. All this indicates that MBOs in India are here to stay manufactured by OEMs or their JVs, is another big challenge for MBOs. This situation is expected to ease out in the future but for now, the MBOs are trying to overcome by resorting to imports wherever possible.

One factor that could derail other than the OE dealers is the technological changes in the auto industry. The future technology is going to be more complex with lots of electronics, which will necessitate sophisticated diagnostic equipment and access to proprietary software. However going by the trends in the developed world, diagnostic equipment makers are competent to come up with solutions. The one factor in favour of MBOs is the fact that cars with the latest technology will come to their workshops with a time gap of minimum two years from first sale of the car, which is enough time to master the technologies and train the workforce.

Another big challenge relates to the availability of funds for network expansion in order to build scale. Several

Trends In Developed Countries This segment of the industry can take heart from the fact that MBOs are a big success in developed countries. There are also recent research reports that indicate that the general preference for MBOs is growing among consumers and becomes all the more pronounced in tough times like recession. The propensity to spend more at MBOs is apparently also growing. All this indicates that MBOs in India are here to stay and grow quickly.

Who will emerge winners among the current ones and future entrants is a billion dollar question and we shall have the answers within the next two to three years.

Expected Upsides For This Industry The one thing that can really work in favour of this industry is that when they establish a large enough network across the country, several new business opportunities will present themselves.

One is of course the accessories and insurance related business. However, a bigger opportunity could be in terms of official ties with low volume car makers to take care of their servicing needs in the deep reaches of the country while they focus on sales and marketing of their cars. Whichever way you look at it, MBOs are here to stay and make their mark in the auto servicing industry and will hopefully make the entire process for the customer a much better experience.

CORPORATE

Toyota opens new finance services division with TFS Our Bureau

TOYOTA Group has established a financial services arm with the objective to provide customers with a loan facility to acquire vehicles. The new financial arm, Toyota Financial Services (TFS) has been launched by Toyota Motor Corporation recently.

Th e division has been set-up to support Toyota Group’s revenue and to contribute to the sales promotion of products offered by Toyota. TFSIN is the Indian subsidiary of Toyota Financial Ser vices Corporation (TFSC), is a wholly-owned subsidiary of Toyota Motor Corporation (TMC) in Japan.

Toyota Group has recognised the potential of the Indian market and identified it to be one of the key focus markets for its global growth.

Toyota Financial Services India mirrors its focus on the product, its pricing and fi nal service. The company has put together a formidable team and has set-up its operations in New Delhi with Bangalore as its headquarters, followed by a phased launch across India. Every Toyota dealer outlet will have a dedicated fi nance executive who ensures the customer gets the best fi nance deal. Apart from dedicated services, the company will offer several unique products such as TFS Smart, provide loans upto 100 percent to its customers, insurance funding and dedicated products designed as per the car models. Dealer fi nancing and the used car business will also be supported in this scheme.

TFSIN’s MD & CEO, Kazuki Ogura said, “The Indian automobile industry is

Toyota Group Delegates At The TFSIN launch

destined to be one of largest in the world.

Th is calls for special attention to our customers to whom we will offer unique finance services through highly trained and qualified finance executives at each Toyota dealership. Our objective is to provide Toyota customers with the best auto finance in the market.”

Managing Director of Toyota Kirloskar Motors Hiroshi Nakagawa said, “We welcome Toyota Financial Services in India, which would further strengthen our brand and would help us come closer to our customer by fulfi lling their financial needs. TFSIN has tremendous potential and would work like a catalyst in the growth of Toyota in India.”

Ogura further added that we have put a lot of effort to ensure our customers have a quick and smooth process while purchasing their Toyota car. From an industry best eight-hour loan approval, to easy documentation, to customised solutions, our global experience and understanding of the auto fi nance industry precedes us and we will put our best efforts forward to ensure a happier

Toyota customer.

Deputy Managing Director (Marketing), Toyota Kirloskar Motor, Sandeep Singh said, “Toyota’s objective is to understand the fi nancial needs of all potential customers and ensure that these financial needs are fulfi lled through our financial associates. TKM has always shared a very good rapport with all our financial partners and we are confident that TFSIN will further help us in our efforts to provide customer delight in owning and driving a Toyota.”

Toyota Financial Services began its operations in Australia in 1982 and has grown to be a company that currently employs around 8,400 employees worldwide with assets in excess of $150 billion. The company has a global footprint in 33 countries and enters India with an investment of `260 crore. TESIN’s core objective is to support Toyota sales in India through its knowledge and specialty in the auto fi nance industry and will bring forth innovative products and services to Toyota customers.

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“Falling rupee will raise cost of vehicles”

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AFTERMARKET JULY 2012

I CONVERSATION IN The sluggish economy will propel negative sentiments and eventually cause a decline in demand, while the devaluation of the rupee would mean an increase in the costs of vehicles. In such a situation, there seems to be no immediate indication of revival. However, the likelihood of a very good monsoon may just bring the much needed respite, according to President, Federation of Automobile Dealers Association (FADA) Nikunj Sanghi in an interview with Aftermarket. He also suggested for fellow dealers to cut down their overheads as far as possible without compromising on expenditure relating to creation of demand and put a stronger focus on service and spare parts business.

Nabeel A Khan

In the current situation, which may be termed ‘not so favourable’, what would your suggestion be to fellow dealers?

My suggestions to fellow dealers would be to cut down their overheads as far as possible without compromising on expenditure relating to creation of demand. I would also strongly recommend a major focus on service, spare parts business and focus on CRM to retain existing customers as it is a time proven fact that retaining existing customers is nearly 70 percent cheaper than acquiring new customers.

How can one shift earning from sales to services? How viable could the proposition be?

The Automotive Skill Development Council (ASDC), under the aegis of the National Skill Development Council (NSDC) is primarily addressing the problem of lack of skilled manpower.

Most of the course content has almost been finalised and pilot training batches for machinists, technicians and drivers have already started. We expect much faster progress after the pilots have been tested.

There has been talk about pushing for uniform vehicle registration law across India. How is the progress on this front?

Progress on this front is not much to talk about. As this relates to agreement by various states, with political differences between different parties ruling the state, arriving at a consensus is almost like a

dream. We already have the example of GST not yet becoming a reality.

India has made huge strides in technological innovation and today, the country is dubbed as a global technology hub. Though navigation has been an unexplored territory until late, we see a large opportunity in India

There have been some discouraging factors involved in automobile retail, like availability of space and costs. How is FADA dealing with it?

Cost of infrastructure specifically prices of real estate are the biggest challenges facing the automobile industry. FADA is approaching both the central and the state governments to develop specific ‘auto zones’ where land is made available for all kinds of auto dealerships at reasonable prices.

There has been a call to give dealers an industry status. Any progress?

This would be easier said than done but if we do get industry status, it would entitle dealers to a number of benefits including lower costs of working capital and lower costs of electricity. It would also result in better terms for term loans.

Will India be able to see multi-brand automobile dealers any time soon?

This does not seem to be very far fetched. We can already see multi-brands coming under different roofs but of the same dealer owner. As competition heats up and locating good dealers becomes difficult, multi-brand showrooms might become a reality in India.

The Indian economy is slowing down substantially and the rupee has devalued to all time low. How do you respond to it?

These are very disturbing indicators.

Both the slowing down of economy and devaluation of the rupee, do not portent well for the automobile industry. While sluggish economy would result in negative sentiments and thus decrease demand, devaluation would mean increase in costs of vehicle.

The vehicle sales have been almost trailing in the last couple of months. Is a revival expected? And what would be conditions for revival?

There seem to be no immediate indications of revival as the fundamentals are weak. Revival if any can only be expected in the likelihood of a very good monsoon or some major positive steps by the government towards policy reforms.

The CV segment, which did quite well in the last financial year is on way to ‘cyclic’ downturn. How does it augur to the dealer community?

A downturn in the CV market does not augur well for the dealers as any downturn has a severe impact on dealer profitability, especially for CV dealers.

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“Two factors that will impact growth will be industrial production as well as movement of goods” How was the year that went by for TVS & Sons?

On the whole, last year was good for us as we had a reasonable growth. The fi rst half was very good, while the second half started showing the pressure of the volatility in the world market. The dealership business for the commercial vehicles didn’t have growth in the previous year but 201112 was good. Overall the dealership business was good in terms of top line growth but not the bottom line, simply because of the higher interest rates and higher input costs.

Was it due to inventories?

The interest rate has been the biggest skid due to large inventories. We are in the growth mode in service business and we continue to grow. I don’t think our market share is so high that it is worrying for us to look at huge growth. So that’s still growing as per our plan.

We did not have tremendous growth in parts business but at the same time, there has been good growth. In our logistics business too we had the capital raising and so most of our time was spent on that. The interest cost had a huge impact in this line of business. This is because interest rates increase coupled with it the higher borrowings waiting for the new capital to

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I CONVERSATION IN

TVS & Sons is one of the very few companies present in the entire gamut of aftermarket. While it is an opportunity for the company to strike a balance with different business divisions during market volatility, there are enough challenges that it is faced with. The Joint Managing Director of TVS & Sons, R Dinesh shares his thoughts with T Murrali on the challenges and opportunities for the company in the future. Excerpts from the interview:

come in. Fiscal 2012 was a good year overall, subject to huge bottom line pressures, also due to higher wage costs among other things. Both infrastructure as well as working capital requirements of funding has been taken at higher interest costs.

How do you see the current fi scal turning up for you?

The medium term, which is three to four years, for all the businesses in my view are still poised for good growth.

I would say the position is just right for growth.

What are your plans to enhance profitability?

We have to tighten our belt this year mainly on the cost side; it is not that the market will degrow but the volatility is so high that the month-on-month variation will be putting lot of pressure on us. We don’t know which one is the driver and what will trigger a change.

We will have an issue, in practical terms, where it is not the interest cost alone but other macro factors will play a major role.

What according to you are the macro factors that affect your business growth?

Unfortunately, I can’t defi ne one macro factor; I cannot say Europe will affect my business but what is happening in Europe is affecting IT or some other sector and in turn, it affects the psychological sentiments. The two biggest factors are market sentiments and industrial production including agriculture. Assuming that agriculture is

normal, the two other factors that impact growth will be industrial production as well as movement of goods. And psychological sentiments are something that we cannot control and that’s why I said it is volatile. One can think of postponing servicing of cars or trucks but it will not go beyond three or four months. There will be a lull during the period and we need to be able to hold on to cost. Therefore, in the first half we will be very watchful and then take a decision as to how we see the second half.

In which line of your business do you see more challenges?

Each division has its own challenges but if I can quickly summarise, I think in the dealership business the growth and maintaining market share will be the challenges; because in some of our businesses we have significant market share so we have to only keep maintaining it. The challenge in the distribution business is the supply chain and forecasting methodology. We have acquired a business recently and we hope to bring that model to India quickly, so that we can start sharpening out practices. It will also help us in our stocking and supply chain efficiencies.

In the services business, I think it’s just the delivery and continuing to execute well, making sure the business is profitable. In logistics, the opportunity is huge because the market is down now and you can make lot of good acquisitions, good planning etc, but the impediment is escalating cost. Since it is a B2B segment, unlike the other two, which are B2C, bearing the cost in mind

and managing the value addition with the cost is our challenge.

Do you see differences in opportunities available in India and rest of the world?

I think many parts of the world have not seen the growth that India has seen.

Therefore, expectations have been lower than India; the more I see it the more I see an opportunity to acquire capabilities and customers at the right price without worrying too much about over pain. The overseas opportunity is not necessarily to grow but make good acquisitions.

The challenge is that they shouldn’t lead you in to a negative situation, where you struggle to come out of it. Therefore, it is necessary to be careful and strike a balance.

Are you looking at acquisitions or acquiring capabilities from overseas further?

Yes definitely; in logistics we are seeing it as a crucial factor. In the distribution business with Universal already in place, we may make one more acquisition as we really have covered most of our capability requirements. Practically, in the long-term, I see that there is enough of management bandwidth, which we can acquire with good acquisitions and I think that will also benefit us.

Is there an opportunity to expand your scope in domestic aftermarket—say to enter the two-wheeler segment?

I don’t think we will be looking at the two-wheeler service, but definitely we will look at off-the-road equipments in dealership.

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“It’s not just enough to supply parts.

Instead, it is necessary to support the distributors’ overall business” Offering quality service is key to ensure customer satisfaction. And in order to ensure success in the service domain, there are several aspects that need to be addressed. In addition to training manpower, the challenge is to make the right parts available at the right time. Vice President (Automotive Aftermarket), Bosch Ltd, S Muralidharan tells T Murrali that the company is looking at the entire ecosystem of automotive aftermarket for growth. Excerpts from the interview:

Distribution of the right parts at the right time is the key to offer service successfully. Can you tell us how you manage the distribution?

We have Bosch Car Distributors (BCD) who will in a planned way distribute parts to Bosch Car Service, Express Car Service, and also the Carbon Garages, covering more or less the significant portion of the market.

It calls for a planned inventory and so it should be equipped with systems and tools.

What is the objective of setting-up a BCD? We established ourselves as BCD mainly to service the car segment since we found that the car is becoming more and more a different channel as opposed to two-wheelers, trucks and tractors. So cars are emerging in the market and alongside car wholesalers, car workshops, while car retailers are also emerging because the end customer is becoming different. These car workshops for example are not in the transport ‘nagars’ (transport hubs), which are specifically for trucks. Car markets are emerging across various parts of the country and there is a need to service those markets. We are equipping all these distributors with the

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IN CONVERSATION

E-focus, a company given system tool, which amongst other things will help them plan. Another aspect of the system is that it has a facility called sales force. com, whereby we support the salesmen of the distributors to plan their business and optimise the productivity. All these are just to service the market in terms of logistics since supply of parts is critical.

How does the e-focus module function?

As the market widens, it’s not just enough to supply parts. Instead, it is necessary to support the distributors’ overall business—not just billing but also their inventory and the whole gamut of business activities so that they can in their own way, plan and manage the inventory better.

Is salesforce.com a portal? How does it help the users?

Yes, it is a portal and it helps to monitor the secondary sales. Traditionally, any company sells its products to the distributors and after that, no one knows what has happened down the line. With this tool, we can find how much a salesman has sold out; once you know how much he has sold out then it is an indication for how much you can sell in. Once you get an idea of what he is selling out, we also know whether the workshops are consuming those parts, the productivity per call, seasonal trend and so on.

Have you provided a hand-held device for the salesman to book orders online?

No, he has to come back to his office and check the parts availability also. Instead of the conventional daily reports, he can use this tool as it is much more sophisticated. Earlier, the salesman would have prepared the report written by hand. Now, with this system, he keys in the report, which makes whole business more transparent.

Service is something that delights the customers.

It includes a lot of small things in addition to the normal quality of repair. Motivating the people in the workshop is important because the attrition level is quite high. These are smaller tools to enable the owner to retain the personnel in its fold

Will the system enable you to analyse the whole process on real time basis?

It may not be real time, but will be much more accurate than what it used to be earlier. Earlier, the salesman especially from interior areas used to give us a call or send the orders by post.

Now it is much more online and it’s a huge change.

In that case, the execution of order should be faster. And you won’t lose customers?

Yes it is. That is the whole purpose; as a consequence, the delivery van in which the BCD sends the material, will have the right parts. The speed of delivery increases and also under today’s conditions, it will improve the working capital because he knows what to stock, his current status and so the whole thing follows.

Can you elaborate the other projects that you are working on?

Another project is constant improvement in technology inputs.

With more and more new models of cars coming in, we have to constantly increase the diagnostic capability,

the test equipment and training the people. We are planning to roll out the quality cup, which is called ‘Q Cup’ to honour the service personnel. We are going to indentify the good foreman or mechanic at every service point and conduct tests at the regional level and finally at the national level. The purpose is not to test them; instead it is to create quality awareness in that community. So there is a certain level of competition that comes and this, in its own way, will bring quality awareness. We are very sure that it will eventually increase customers footfalls in the outlets.

Will it confine the personnel to the job of providing vehicle service alone?

Service is something that delights the customers. It includes a lot of small things in addition to the normal quality of repair. Motivating personnel in the workshop is important because the attrition level is quite high. These are smaller tools to enable the owner to retain the personnel in its fold. At the end of the day, the workshop’s foreman finds that he has entered a contest and he is a winner because he belongs to Bosch’s car or diesel service. He has a certain pride. Therefore he knows that as long as he is with the company, these are some of the soft and important things that he gets.

How does it help you at the macro level?

These initiatives and successes add up to the entire community. To extend this we organise intensive training; in addition to setting-up our own training centre, we are now setting-up a training centre along with educational institutes.

We have one in Chennai with SRM University and we have one in Nagpur, which is an ITI kind of institution.

The University is very good as you need engineer level personnel and ITI is excellent if you are looking at the

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IN CONVERSATION

workshop foreman to be trained. Thus, we have a partnership with Nagpur University, for ITI and diploma level people. We are looking at extending this partnership to areas like Pune and Chandigarh.

Is there any strategic reason to these geographical locations?

We can’t set-up training centres across the country. The market is moving and so we realised that the effective way is to associate with universities and educational institutes. The other advantage I find out of educational institutes is there is no perception of bias.

Otherwise, people will think that we promote Bosch at our training centres.

On the contrary, any garage workman can come as there is an element of neutrality across the education centre.

However, there will be equipment and people from our company; therefore there will be a feeling of Bosch without being too much about our company.

How does the training programme help you?

We are training people and not interested in focussing on selling parts; instead we are trying to create certain loyalty among people who go in.

When he goes to the university, he sees equipment made by our company and somewhere down the line there is loyalty, so there is a connect, there is a feeling of familiarity with the instruments and products. The education is what driving the business in its own way without necessarily getting into business.

What is the update on diagnostics?

Diagnostics are going on in a phase of improvement. We have improved on the ACS machine, the nitrogen tyre inflator etc. We are also focussing more on aligners, balancers, tyre changing equipment because there is a huge need for tyre changers. Nobody

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AFTERMARKET JULY 2012

changes the tyres in the traditional way and there is a need for equipment. The wheels need to be balanced especially in the car segment so there is a need to equip the garages and tyre shops.

We have a global tie-up with Michelin. We have an association with Bridgestone. So this is one more area where we are trying to touch base and expand customer base.

Can you give us an update on the number of Bosch Car Service centres?

We already have about 500 Bosch Car Service centres and the number will cross 600 before the end of this calendar year. The Carbon Garages will be doubled to 2,000 this year. We are getting deeper into Express Car Service; it is less than 50 now and it will cross 200 this year.

Some time ago, you mentioned that you would get into servicing twowheelers? What is the current status?

We have set-up the first pilot workshop—Express Bike Service, in Delhi. The purpose is to give quality service to the bike users as there is clearly a gap in the market with more and more two-wheelers coming in.

Instead of the conventional daily reports, he can use the e-Focus tool as it is much

There are very good OEM dealer service centres as well as roadside mechanics; but we do see a need for people to come in the mid-segment.

What is the feedback for the pilot project?

Very positive; soon we will be rolling out across the country and will touch 50 in next six months. It will be a franchise model with the outlets holding a standard signage and these outlets will have access to genuine parts. We are quite excited about the two-wheeler business since it is one more business where we are growing by leaps and bounds.

Would you be getting into training mechanics / garages for two-wheelers?

We are in serious discussions at the moment, to establish our own twowheeler training centre. The challenge is that it is no more possible to restrict yourself only to Bosch parts. The approach should be holistic. This is a bit of challenge for us because we have to give the necessary theoretical inputs for non-Bosch parts as well.

Would you associate with the components manufacturers who make other parts?

We don’t have a solution to this as yet and we are working on it. We are looking introducing mobile training centres to facilitate people from remote places.

more sophisticated.

Earlier, the salesman would have prepared the report written by hand.

Now, with this system, he keys in the report, which makes whole business more transparent

What about remanufacturing?

This segment is slowly emerging but the speed of change is the challenge.

We are just choosing one or two products like diesel parts, starters, alternatives and injectors, which are precisely high value parts which need not be wasted. I think it has certain merit and as a consequence somewhere down the line the end-user will find it useful.

SPECIAL REPORT

...continued from pg 33

Indian Automotive Aftermarket

The auto industry is spending big sums on technology to support environment cause and for making the world a better place for future generations. Counterfeits act for just the opposite cause and hence we have decided to work on this area seriously—S Sandilya, President SIAM

National Seminar On Anti-Counterfeiting

MOST COMMONLY COUNTERFEITED PARTS Enging & Excaust

Suspension & Braking

Body & Structural

Electrical & Electronics

Oil filters

Steering arms

Sheet metals

Alternators spares

Air filters

Tie rods

Bumpers

Head lamps

Distributor caps

Brakes

Windshields

Tail lamps

Fuel filters

Brake linings

Coolant & transmission fluids Bearings Oil pumps Water pumps Spark plugs Piston & piston rings Lubricants Sealing rings

Wipers Starter moter spares

with ACMA and SIAM for a time bound roadmap on amendments to the existing enactments. ACMA had also conducted an extensive primary research to understand the impact of counterfeits with its findings from a white paper last year. The paper has highlighted various enactments under the existing legislative framework with suggested recommendations and a rationale for such recommendations.

The seminar has taken a critical look on the dispensation of enactments listed in the white paper with the industry’s resolve to contain this menace. Commenting on occasion, President SIAM, S Sandilya said, “The auto industry is spending big sums on technology to support environment cause and for making the world a better place for future generations.

Counterfeits act for just the opposite cause and hence we have decided to work on this area seriously.”

Notable amongst these enactments has been the industry’s demand to amend the Motor Vehicles Act that lays down standards for components and parts of Motor vehicles.

The Motor Vehicles Act, the industry feels should be intended not only to regulate completely assembled vehicles but also equally apply to components used or intended for use in vehicles including parts sold in the aftermarket.

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SPECIAL REPORT

THE Bangalore headquartered Madhus Garage Equipments Private Limited will celebrate its silver jubilee in November and towards this, the company is planning, among other things, to organise technical colloquiums to help interact with OEMs, its principals and customers. Though it had been focussing on garage equipment for passenger cars for the last 24 years, it saw the demand for equipment meant for commercial vehicles rising during the last couple of years. The company has been catering to truck segment for the last seven years.

Speaking to Aftermarket, the Managing Director of the company, Ravi BM said the company sees garage equipment for commercial vehicles promising in the near future as the share of business from this segment has witnessed significant growth. Though the passenger car segment gets the lion’s share of business, the growth of garage equipment for commercial vehicles is fast catching up.

The company reported a turnover of `66 crore last fiscal, growing by about 15 percent. According to him, the company has been growing at the rate of 10 to 15 percent year-on-year since inception.

About 15 percent of last year’s revenue came from crash repair equipment, 25 from commercial vehicle segment and the rest from passenger cars. Four years ago, the revenue from sale of equipment for commercial vehicles accounted for five percent. This segment is poised for growth in the years to come and it might account for about 40 percent in the near future, he said.

Madhus Garage deals with garage equipment for bodyshops, wheels and lifts for both passenger cars and commercial vehicles. Currently, the company holds 65 percent market share in the product segment it is operating in, which is premium segment. The

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AFTERMARKET JULY 2012

Photograph: Bhargav TS

T Murrali

Madhus sees future in heavy duty segment The company plans several programmes as part of its sliver jubilee celebrations beginning November 2012.

SPECIAL REPORT

premium segment accounts for about 25 percent of the total industry. In the midsegment, which accounts for 20 percent of the industry, the company holds about 15 to 20 percent market share. It is not present in the low-end market.

It took a lot of time for the company to convince the customers of commercial vehicle service centres on the importance of right equipment and their benefits. Now that it is picking up, the first challenge is to meet service demands. “Customers are asking for service that can put the machine back to work in less than 24 hours. It is a huge challenge for a vast country like India. It is also due to availability of spare parts on time,” he said.

Couple of years ago, the company has initiated a new concept called—Customer Service Cell (CSC), which registers the customers’ complaints and takes action.

The software helps the company to identify the profile of the customer who has called to register the complaint instantaneously, including his location and his equipment details. The complaint is forwarded to the service engineer who makes a telephone call to assess the fault and decide whether it requires telephonic assistance or personal attention as not every fault requires a visit by technicians. The system also alerts the spare parts department and arranges to courier the parts the same day.

This way, the service call is successfully closed within 48 hours of the receipt of the call. The timeline is more in the case of rural areas since it takes some time for the service engineers to access. The challenge is to reduce the time between registering the complaint and rectifying it. As part of this initiative, the company is currently planning to increase the number service engineers. It has increased the headcount by about 50 percent to 60 in the last one year. Besides, it is also planning to decentralise and hold some inventory of critical parts in regional offices also.

Madhus Garage is also mulling options to introduce new concepts

in repairing vehicles. According to Ravi, there are several new concepts in repairing a crashed vehicle while maintaining high quality of repair and ensuring productivity that will eventually end up in higher profitability.

“We are planning to bring in to India similar concepts. For instance, there may be only one out four or five cars that have come in for service that require crash repair service. It is not necessary for a car with minor damages to be hooked up to high-end machines. To address this issue, we have a speed concept, with a smaller benches to remove the bumpers, other minor body parts and even pull if there is a minor dent. The garages can have three or four smaller benches and one larger one so that it can service four to five cars at a time.

The concept, called as ‘Master and Slave,’ has been recently introduced and Honda Siel has already agreed to this concept and wants its service centres to follow. Toyota is planning to take it up.

Other OEMs are also looking at this option since the increased productivity will help with respect to enhanced profitability,” he said.

Yet another concept is on wheel alignment with the demand for the job to be performed at a faster pace. “The new wheel aligner from Hunter called Elite can do a measurement in 90 seconds and finish the job in ten minutes. Besides, there will not be any human error as the

Customers are asking for service that can put the machine back to work in less than 24 hours. It is a huge challenge for a vast country like India. It is also due to availability of spare parts on time—Ravi BM, MD, Madhus Garage Equipments

equipment offers tremendous flexibility.

Ravi said there are lot of changes and improvements in wheels and tyres such as run flat tyres, lower aspect ratio tyres, expensive alloy wheels etc that need special tyre changing equipment. About 20 years ago, the tyres were changed using hammers, which is not there anymore.

From this, the garages want to upgrade as the end customers do not want scratches on the rims and tyres. Therefore, leverless tyre changers are coming in to the market, he said. “We are trying to bridge the technological gap between India and the rest of the world,” he added.

Madhus Garage has been an importer all through. Asked if it makes sense for the company to manufacture these machines locally, Ravi said the advantages of being a retailer in a developing market are far higher because the quantities are less while there is access to best technologies that had been deployed elsewhere successfully.

“There is no need to reinvent the wheel.

If you manufacture locally then you are struck with that products for few years to make it profitable. Otherwise all the investment made towards manufacturing that model will not be fruitful. And there is nothing great about assembling the kits locally. Few companies including Hunter are prepared to support us anytime and willing to make changes in products to suit Indian conditions. While they are able to do it and give it to us here, we do not see any reason why we should manufacture the same here. Besides, customs duty has reduced quite a bit, facilitating imports.”

Moreover, the companies that Madhus Garage represents in India themselves are participating in day-to-day activities.

Recently, the owners of Hunter visited India to understand the ground realities and get a feel of it. They developed twincamera systems especially for India since garages here still use pits. “We work hand-in-hand with their R&D centres.

Similarly officials from Car-O-Liner used to visit India often,” he said.

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FACILITY VISIT T

Customising Choice MPL Automobiles has leveraged its 15 years of experience in understanding the evolving trends and has been amongst the earliest dealers to adopt the customer-centric policies that have today revolutionised the global aftermarkets.

T Murrali

CHENNAI -based MPL Automobiles, part of the MPL Group is looking at a faster pace of growth in the near future due to a couple of reasons. One, the basics are intact in terms of infrastructure at its dealership, sales personnel grooming and additional technical support; two, the slew of new vehicle launches planned by the OEM it is associated with—the utility vehicle manufacturer Mahindra & Mahindra.

Established as an authorised stockist for Mahindra & Mahindra, the sojourn of MPL Automobiles culminated to becoming a dealer for the vehicle manufacturer in a few years. It began its dealership journey in 1996 by selling MM 540, Armada, Commander and Mahindra Mini bus. Within three years, MPL Automobiles became at par with the existing dealerships that have been in the business for ages, in terms of the number of vehicle sold.

Speaking to Aftermarket, the CEO of MPL Automobiles, S Ashok said, “It was a great honour for the company when Mahindra & Mahindra decided to appoint us as dealers, as procuring an automobile dealership was premium in those days. We were overjoyed.

However, the challenge for us was to establish the dealership. We had a clear line of thinking that we would not operate the conventional way that dealerships operate. ‘Customers’

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AFTERMARKET JULY 2012

S Ashok, CEO, MPL Automobiles

delight’ was not heard of in those days.

As this had become the key with the entry of multinational companies in the automobile arena, we decided to inculcate this concept from the day one of our dealership business.”

During those days, customers for

the utility vehicles were limited as the evolution of automobiles per se was at an infancy stage. While the options were limited, even for those seeking to buy passenger cars those days, the customers of utility vehicles barely had any choice.

Therefore the choice of vehicles would

FACILITY VISIT

not draw customers. Consequently, MPL Automobiles decided to adopt certain things that would delight the customers. “We learned a lot from multinational companies—Th rough our sister dealership MPL Ford, we realised that it is important to focus on customer satisfaction. We decided to create and set-up a system that will ensure customer satisfaction,” he said. The company focussed on training the entire staff of the dealership so that they present themselves better with the customers and support the customers in the entire process of buying.

Besides, “We firmed up our plans to give the customers the touch and feel of a passenger car showroom, though we were dealing with utility vehicles.

Our aim was to create the showroom in such a way that the customers should not see or feel any difference between the showroom selling cars and utility vehicles,” the dealer principal said.

Ashok, who is a chartered accountant, said that the company did not have exposure in selling automobiles and this became a positive as well as negative attribute. Positive, since there was enough room for out of the box thinking and negative due to lack of knowledge of the nitty-gritty.

However, the challenge remained to compete with giants. The company appointed people from different industries and did not confine themselves only to auto, so that they would have different approaches. In those days, the customers of utility vehicles were not treated well. The company took this seriously and presented a better experience for the customers who walked in to the showroom. “Today, our sales officers approach prospective customers of XUV 500 for instance, with several gadgets including a tablet wrapped around their elbows to explain the features of the vehicle,” he said.

Though the company has grown to

MPL has given a free hand to its people to professionally run the retail outlet. This helped it in dealing with the customers better

what it is today, the challenge, according to him, the hands-on man, is to retain employees. In order to achieve this objective, MPL has given a free hand to its people to professionally run the retail outlet. Th is helped it in dealing with the customers better. Besides, it offers special training organised by external agencies, especially to learn and follow best practises from different segments and industries. These initiatives also helped in retaining the employees.

“More than 20 percent of the employees have put in over ten years of service.

Mahindra & Mahindra guided us throughout the journey and encouraged us,” he said.

We learned a lot from multinational companies— through our sister dealership MPL Ford, we realised that it is important to focus on customer satisfaction. We decided to create and set-up a system that will ensure customer satisfaction—S Ashok, CEO, MPL Automobiles

Currently, MPL Automobiles sells Bolero, Scorpio, Xylo, Verito and XUV 500. Its sister concern MPL Motors sells several models including Maximmo, Genio, Alfa, Gio and pickups. Both the companies sell around 400 vehicles per month. The company has five showrooms and four service centres in and around the city. Currently it sells around 400 vehicles per month and services about 160 vehicles every day. When asked about the specialities Ashok said the company offers locational advantages to the customers by being present in different geographies of the city and its suburbs. Moreover, it offers convenient timings for vehicle servicing. “More than 65 percent of the vehicles that come for service are delivered the same day. Also, the repeat job is minimised,” he said.

With XUV 500 and other products like Xylo, Scorpio and Verito, MPL Automobiles is looking at a promising growth in the years to come. It also has Mahindra First Choice, the used car outlet of Mahindra & Mahindra, selling around 50 vehicles a month.

MPL Automobiles reported a turnover of `175 crore during the fiscal 2011-12 against `25 crore five years ago. Ashok signed off by saying that the company aims to cross `800 crore as turnover by 2015-16.

JULY 2012 AFTERMARKET

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TYRES & RETREADING

Cautious outlook for aftermarket going forward: Apollo Tyres Abhishek Parekh

APOLLO Tyres Ltd is looking to expand beyond its traditional strongholds of truck and bus segments to spread its operations geographically. It is maintaining a cautious growth outlook for the aftermarket for tyres in the domestic market.

“Cheap imports into the aftermarket continue to be the biggest challenge.

While the government has been supportive and it has imposed an antidumping duty on these imports, tyres continue to be imported into the country through unfair means. To add to this, is the volatility of production at the automotive manufacturers’ end, which makes it difficult for us to forecast and plan capacities,” pointed out, Chief, India Operations, Apollo Tyres Ltd, Satish Sharma.

The company is seeing good momentum from the truck segment and expects the industry growth rate to be close to double-digits, according to a recent conference call with analysts. The company further pointed out that the passenger car segment should also see a growth rate in high single digits over the next year or so. It is targeting around 20 percent growth in the topline. It is looking to expand into new geographies and has already set-up an office in the Middle East. It is also looking at new locations in South-East Asia to set-up sales and marketing offices.

Sharma added that though the company has been exporting tyres to many countries, the focus is on the Middle-East, ASEAN and the Oceania region. It is aims to mirror its domestic

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aftermarket strategy in these markets as well. He also pointed out that the replacement market in these regions will take time to reach the maturity levels of the aftermarket in India. Though the company has established a favourable position in the domestic market, the domestic aftermarket cannot be aloof to the overall economic conditions.

Aftermarket contributed around 73 percent to the company’s consolidated revenues of FY12. The company has been gradually expanding its dealership network and has been assessing qualities in dealers like ability to retail the company’s range of products, the visibility that such a dealer can provide for the products and the hygiene factor of aftersales service.

On the international front, the company has been facing difficult scenario in South Africa in the last fiscal with couple of factory shutdowns due to national and company level issues. The sales in the fourth quarter were at `340 crore, a four percent decline compared to the same period last year. The sales were impacted due to decline in volumes, of around 18 percent but made up with improvement in price and sales mix.

In South Africa, both OE and replacement segments are seeing a growth of low or mid-single digits, said a company official during a recent analyst conference call. A large part of the market, which was captured by the Chinese imports about a year-and-half or two years ago, when the industry had a prolonged shutdown, has now become fairly entrenched. The domestic players are fighting for the balance 50 percent marketshare. A much stable raw material

Satish Sharma, Chief, India Operations, Apollo Tyres

pricing scenario is working favourably for most manufacturers in South Africa.

The company official also pointed out that the European markets have been stable largely because it is dominated by global majors who pass on price increases to consumers far more quickly.

In the rising raw material scenario, since Chinese imports do not take as many price increases, there have been further constraints on the domestic industry.

Growth in the European revenues would be lower than those from Indian and South African operations in this fiscal.

The company hopes to sell larger volumes in the Apollo brand internationally.

In FY12, the Apollo brand tyres were introduced in three new European countries—Austria, Switzerland and Denmark.

Vital LINK between

Manufacturers and End-Users

INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

To know more: Call us at 022 3003 4650 OR write to b2b@infomedia18.in www.afmonline.in

TYRES & RETREADING

Michelin to cast a cost effective network of service providers at strategic locations Abhishek Parekh

MICHELIN India is looking to deepen its penetration in the second and third tier cities in the country with exclusive and non-exclusive stores.

“India is an important market for us and our objective is to continue our expansion with the right partners both on the truck and passenger car tyres.

With the opening of every store, we aim to reach out to our consumers and educate them about choosing the right tyre that is suitable for their needs,” said National Sales Manager- Passenger Car, Michelin India, Chandan Thakur.

It has opened new stores including TyrePlus in Delhi and Bengaluru and MTSC in Panvel (Maharashtra). The company already has a presence in parts of Tamil Nadu, Maharashtra, Karnataka, Gujarat, Rajasthan, Punjab, Uttar Pradesh, Bihar, Uttrakhand and New Delhi.

“We are looking to expand TyrePlus network with dealers, who have the potential of contributing to the longterm relationship vision of Michelin.

They are chosen based on their strong retail counter, service orientation, long term relationship, brand vision and market potential. These dealers are proud to be on the forefront of changing the way tyres are sold in India,” he added.

The company is looking to spread ‘TyrePlus’ brand in order to make available the choice of brands of tyres and related services to Indian car owners and drivers under one roof at fair and competitive prices. Currently, the company has around 18 odd outlets around the country.

The company has been gradually introducing and expanding its global

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distribution programmes including TyrePlus (TP) and Michelin Truck Service Centre (MTSC) to India. The objective for bringing its global formats to India is to make available the choice of brands of tyres and related services to Indian car owners and drivers under one roof at fair and competitive prices.

MTSC provides a one-stop solution for truck tyre needs at strategic locations across the country. It is the company’s global format providing products and services to fleet-owners.

Currently, with a network of six MTSCs across country in the regions of Kanpur, Patran, Jaipur, Sankari, Namakkal and Panvel, MTSC helps truck-owners reduce maintenance costs and optimise benefits from multibranded radial tyres manufactured by various tyre manufacturers. Radial tyres are technologically advanced, as compared to the traditional cross-ply tyres, and need proper fitment, timely inspection and repair to derive the maximum benefit out of them.

TyrePlus offers a variety of quick automotive services helping customers minimise the time and money involved in maintaining their vehicles.

There are around 15 TyrePlus outlets located across India—Tirupur, Pune, Faridabad, Vijayawada, Madurai,Thane, Ahmednagar, Jaipur, Surat, Haridwar, Vashi, two each in Delhi and Bengaluru.

The company’s global formats are geared at handling all tyre and related services for both passenger car and truck and bus segment respectively. Given the fragmented nature of the aftersales market, the challenge for any tyre maker in the aftermarket is to set-up a cost effective and reliable network of service

Chandan Thakur, National sales Manager, Michelin

providers cum tyre outlets at most of the strategic locations around the country.

The automotive aftermarket in India spans manufacturers, distributors, retailers, service providers and garages.

Currently, the market is growing at around 10 percent per annum, primarily fuelled by the increasing number of vehicles on the road, as well as the expansion of independent and foreign players. The company is looking to offer differentiated value-added services through its retail concept of Tyre Plus and MTSC will help carve out a more robust path to profitability.

“We look to dealer partners who share the value of a strong service and quality culture. We seek to provide value to our dealers through bringing global knowhow and best practices, to enable both to grow profitably in India,” signed off Thakur.

The company manufactures and markets tyres for various applications and has presence in more than 170 countries.

TYRES & RETREADING

Tyre replacement demand may be muted in coming months: Bridgestone India Abhishek Parekh

BRIDGESTONE India Pvt Ltd is expecting muted growth in demand for tyres in the replacement market. It is looking to expand its dealership network in smaller towns and other consumption points. It plans to increase its presence across the country mainly through nonexclusive stores and is in the process of enrolling additional dealers. It is evaluating newer segments within the automotive segment for growth and may be looking to have a larger play in the commercial vehicle segment as the radialisation level grows across the automotive sector.

“We are increasingly looking at the scenario of lesser number of tyres being replaced in the aftermarket and efforts by the owners to prolong the life of the tyres. Earlier, all four tyres would be replaced by a vehicle owner; just a set of tyres are replaced for cost optimisation purpose and this is restricting the demand for tyres in the aftermarket especially in a slowdown.

But we feel this phase of postponement of purchase may be temporary and overall demand would continue to be good in the coming months,” said Vaibhav Saraf, General Manager, PSR Sales & Marketing, Bridgestone India Pvt Ltd. He added that high fuel prices are likely to lead to lesser vehicle run that could in turn imply reduced wear and tear of tyres prompting reduced aftersales demand. Both these factors are leading to an average increase in the time cycle of replacement demand from around 2.5 to three years currently, to around four years or so.

Vaibhav Saraf, PSR Sales & Marketing, Bridgestone India

The company currently has around 2,200 touchpoints including exclusive and non-exclusive outlets. “We promote multi-brand outlets as we do not have solutions for all vehicle segments and it

We are increasingly looking at the scenario of lesser number of tyres being replaced in the aftermarket and efforts by the owners to prolong the life of the tyres—Vaibhav Saraf, GM, PSR Sales & Marketing, Bridgestone India Pvt Ltd

is in the dealers’ and customers’ interest to have different sizes for various applications,” said Saraf. It has around 320 ‘committed’ dealers who derive around 70 to 80 percent of their volumes from Bridgestone products.

The company manufactures around 15,000 units per day at its Indore facility and it is setting up a new facility in Pune, which will add up similar capacity over the next three to four years.

Bridgestone India started its operations in 1996. It set-up its manufacturing facility in Kheda, MP in around 1998. The company is setting its Pune facility with an investment of around `2,600 crore with capacity to manufacture a range of radial passenger vehicle tyres.

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AUTOPOINT

Supply shortfall makes dirty fuel

preferred over the green fuel...

Revati Kasture Head-Industry Research Vishal Srivastav Manager

Macro-economic uncertainties combined with constant rise in petrol prices and firm interest rates have pulled domestic growth levels in PV industry The PV industry after witnessing a high growth scenario of around 25 percent and 27 percent respectively during two consecutive years FY10 and FY11 faced a road block in FY12.

The industry managed to post a growth of mere 4.7 percent, abet by healthy growth witnessed during last quarter. This growth level was the lowest, domestic PV industry has witnessed during last one decade. Negative sentiments arising due to economic uncertainties, spiralling fuel prices and interest cost combined with high inflation levels prompted many customers to defer their purchase.

Spiralling petrol price post deregularisation affected the demand for petrol vehicles significantly De-regularisation of petrol prices from the second quarter of FY11, has given autonomy to oil companies for setting petrol prices in tandem with global crude oil prices. During April 2010June 2012, there have been 10 upward revisions in petrol prices, resulting in 46 percent rise in petrol prices during this period that consequently has inflated the operating cost of petrol vehicles. Rise in the operating cost of petrol vehicles, led to sharp rise in the demand for

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vehicles running on alternative fuels like diesel, CNG and LPG. Diesel vehicles in particular have witness strong spurt in demand as compared to other two gaseous fuels owing to stability in prices, easy availability and better mileage.

Stability in prices has made diesel most preferred fuel off-late...

Because of easy availability and stability in price, diesel has become the most preferred fuel option for the passenger car buyers off-late. During the period (ie June 2010-June 2012) when the price of petrol rose by around 46 percent and the CNG and LPG prices escalated by around 51 percent and 45 percent respectively, the diesel price on the other hand rose by just 13 percent.

CARE Research observed that, the average fuel cost per km for LPG vehicle increased from `2.5 in June 2010 to around `3.8 in June 2012, while that of CNG vehicle has increased from `1.7 per km to `2.2 during the same

period. Owing to minimal increase in diesel prices, the fuel cost per km for diesel vehicle has merely increased from `2.0 in June 2010 to around `2.2 in June 2012. As diesel is the primary fuel used in the transportation sector and an upward revision in diesel prices pushes inflation northwards, hence complete de-regularisation in diesel prices is unlikely in short-term. During last twothree years the demand for diesel cars has risen like never before and buyers are ready to shell out the additional 15-20 percent cost for buying diesel models in order to garner the benefits of lower fuel price and higher mileage ...though CNG still remains the cheapest option CARE Research observed, that the key cost component involved for owning a vehicle are fuel cost, initial capital cost of vehicle, maintenance cost, insurance cost, and financing cost etc. which significantly influence the making

Change in fuel prices since April 2010

AUTOPOINT

purchase decision of a buyer. In order to estimate the total cost of operation of a vehicle, CARE Research considered initial cost of purchase and fuel cost as the proportion of other costs is miniscule.

CARE Research observed that lower initial cost of vehicle combined with lesser fuel cost and higher mileage, the CNG vehicle needs minimum time to recover incremental cost over petrol vehicle followed by LPG and then diesel.

For example, if vehicle is driven for around 10,000 km per annum, it would take around 12 months to recover the additional cost paid over petrol vehicle.

Further for LPG vehicle it would take around 22 months to recover the additional cost, while for diesel vehicle the period required for recovering additional cost is around three years.

Furthermore, CARE Research observed, inspite of diesel vehicles offering the lowest fuel cost per km, the incremental capital cost difference between diesel vehicle and CNG/ LPG vehicle is considerably high. For example the initial capital cost difference between diesel and CNG vehicles is around `75,000-`85,000, while there is difference of around `90,000-`100,000 between diesel and LPG vehicles. This makes diesel vehicles lesser cost effective than CNG and LPG. …supply constraints and safety concerns make gaseous fuel less preferred over diesel CARE Research observed that, although gaseous fuels like CNG and LPG are more economical than diesel and petrol, their availability as well as security concerns arising due to mishaps caused by the bursting of gas cylinders have kept customers at bay. It was found that acceptability of CNG is much higher than LPG as a safer fuel. However because of limited presence of City Gas Distribution (CGD) network which is currently in 41 cities in India the supply

Cost comparison across different fuels

of CNG is restricted only to those areas.

In case of LPG, constant mishaps owing to high inflammable property of LPG and higher maintenance cost has led customers avoiding purchase of LPG powered vehicles. These constraints in gaseous fuel vehicles, has further aided in the growth of diesel powered vehicles.

Diesel vehicles will surpass market share of petrol vehicles shortly...

Going forward, CARE Research expects the share of diesel-driven vehicles to increase in the overall pie of the Indian PV industry. With more than 90 percent of new sales in the utility vehicle segment being diesel variants, the dieselisation trend is now catching up strongly in the passenger car segment also. The diesel car sales were estimated to be around 43 percent of the total car

Recently, the demand for diesel cars has risen and buyers are ready to shell out an additional 15-20 percent for diesel models to garner the benefits

sales in FY12 and for some of the models which have diesel as well as petrol option, sale from diesel variants was around 70 percent of the total sales. The growth trend in the diesel vehicles sales has been even stronger during current fiscal owing to rising uncertainties about petrol prices. ...negating the uncertainties over government’s plan to impose additional tax on diesel vehicles The rising difference between petrol and diesel retail prices is encouraging more and more buyers to opt for diesel vehicles. The uncertainties over government’s intension to impose additional tax on diesel vehicles may dent the demand to some extent as the recovery period of the incremental cost for diesel vehicle would extend.

CARE Research believes, these concerns would fade away gradually, as cost benefits entailed over a life of a vehicle inspite of the imposition of additional tax would continue to drive consumers in favour of diesel vehicle. As per our estimates diesel vehicles would account for more than 1/2th of the new sales in the PV segment in FY13, from the current level of around 43 percent.

(Views expressed are personal)

of lower fuel price and higher mileage

JULY 2012 AFTERMARKET

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GLOBAL

Federal-Mogul elects Michael T Broderick CEO, Global Aftermarket Division THE Board of Directors of Federal-Mogul Corporation, a global supplier of powertrain and safety technologies, and one of leading brands in the worldwide automotive aftermarket has announced the election of Michael T Broderick to the position of Chief Executive Officer, FederalMogul Aftermarket Division effective 25 June, 2012.

He will fill the role established in March 2012 when the Board of Directors announced its decision to modify the company’s corporate structure to create a separate and independent Aftermarket division. Broderick will report to the company’s Board of Directors. Federal-Mogul’s Aftermarket business is one of the largest independent suppliers of leading, premium-branded automotive parts, with global sales of $2.3 billion in 2011. The company manufactures and distributes more than 20 of the world’s most recognised auto parts brands, including Anco wiper blades, Champion spark plugs, Moog chassis parts and Wagner brake products.

“The Board is pleased to welcome Mike to Federal-Mogul and we look forward to his strong leadership in establishing an independent aftermarket division that leverages the company’s premium products and leading brands to drive growth and strong customer loyalty,” said Chairman of Federal-Mogul’s Board of Directors, Carl C Icahn.

Broderick joins Federal-Mogul after 20 years of experience in the automotive aftermarket in positions of increasing responsibility at two of the world’s largest aftermarket parts and service products distributors.

He was most recently president of Carquest, a leading automotive aftermarket distributor. Prior to joining Carquest, Broderick held senior executive sales and operations positions during his sixteen-year tenure at AutoZone, Incorporated.

“On behalf of the Federal-Mogul organisation we congratulate and welcome Mike and look forward to working with him to strengthen FederalMogul’s position as a preferred supplier to the global independent aftermarket,” said CEO of FederalMogul’s OE Division, Rainer Jueckstock.

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GLOBAL

Finance crunch holds back automotive supply chain growth ACCORDING to a new report published recently by The Smith Institute, commissioned by the Society of Motor Manufacturers and Traders (SMMT), the growth of automotive supply chain companies is being constrained by restricted access to finance.

The Smith Institute Report was launched at an event in central London attended by the representatives from banking and automotive sectors, government officials and industry stakeholders.

Offering insight into the relationship between the domestic supply base and the availability of suitable finance products, the report represents the views of over 80 automotive firms operating at every level of the supply chain, as well a range of financial and lending institutions. The findings of the report draw upon comprehensive survey results and detailed case studies compiled from one-to-one interviews with owners and senior managers of automotive firms, including three UK-based vehicle manufacturers and financial experts from some of the largest business banks in the UK.

With over £5.6 billion pledged to the UK during the last 18 months, there is a ‘window of opportunity’ to strengthen the UK supply chain, creating jobs and prosperity for the longterm—Paul Everitt, SMMT Chief Executive

“With over £5.6 billion pledged to the UK during the last 18 months, there is a ‘window of opportunity’ to strengthen the UK supply chain, creating jobs and prosperity for the long-term,” said SMMT Chief Executive, Paul Everitt.

“A lack of expertise within the finance sector is holding back growth in the UK automotive industry. Vital opportunities for companies to grow and develop their businesses are being hampered, because banks have not responded quickly enough to the need for local knowledge and sector expertise. There is a unique opportunity to re-build manufacturing capability and capacity in the UK, but it requires industry, finance and government to shift gear and ensure growth businesses get the financial support they need.”

Companies reported that many financial institutions remained wary of the industry as a lending opportunity, despite the UK manufacturing sector performing strongly, exports achieving record levels and recently pledged investment confirming the long-term plans to base operations in the country.

Building on a separate Smith Institute report released last year, the study highlights how improved dialogue between automotive companies and financial institutions could help to boost economic growth and rebalance the economy, if the two sectors work together to address the type of finance offered to businesses. Identifying SMEs in particular, the report reveals how smaller companies find it difficult to target banks for their lending needs as many institutions were unclear about the key sectors they support and often decisions take far too long.

Factors That Have Impeded Growth t

t

t

t

t

A lack of understanding of the automotive sector, within the banks, particularly at a local level and in regions with a number of automotive companies in operation.

Funding gaps due to how banks evaluate the total assets owned by a company resulting in suppliers often missing out on the full amount of funding applied for, specifically in relation to finance tooling and capital equipment.

Securing finance for tooling development costs due to a focus on the residual value of the machine tool over the long-term asset value it will produce.

Reluctance of SMEs, particularly the 37 percent of which, that are family run, to seek external equity over internal cash f low and loan financing.

Favourable payment terms offered by vehicle manufacturers to supply companies are often not reflected further down the chain.

The recommended cross-industry ‘Tooling for Growth Taskforce’ would form the two-way relationship that is needed to drive progress in the sector. The taskforce would consist of banks and supplier companies representing all tiers of the supply chain (including OEMs), providing a platform to explore more innovative solutions to funding growth, specifically for SMEs in relation to finance packages for tooling-up facilities to meet demand.

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GLOBAL

New Honda dealers show higher brand confidence THE start of 2012 has seen Honda (UK) develop its retail network; both expanding with existing franchisees and recruiting several new franchise partners. These additions across the pan-brand business illustrate confidence in the Honda brand, with investment being made in the long-term future of its dealer networks.

Developments in the car business include Gilder Honda completing the acquisition of the Chesterfield dealership, to operate alongside the Sheffield and Rotherham businesses bought in 2011. North Wales Honda now operates the Honda brand in Llandudno, whilst Norton Way Motors, who also own Chiswick Honda, have opened the doors on a brand new dealership in Wimbledon Park, previously an area without Honda car representation. Other investments within the car division include Harratts of Wakefield and Cloverleaf in Bracknell, both of which, have recently moved to newly built state-of-the-art premises.

Three new franchises have opened in the motorcycle dealer network in

Three franchises have opened in the dealer network recently, and with a further three set to open soon, this is an indication of continuing strength of the motorcycle sector

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recent months, and with a further three set to open in early summer, this is an indication of continuing strength of the motorcycle sector. Smiths Honda is now open for business in Chester, whilst Blade Motorcycles have begun trading in Swindon. In Plymouth GT Motorcycles has reopened at its established destination dealership on Elburton Road. These new additions to the motorcycle dealer network will further help Honda strengthen its number one position in the market.

The Power Equipment Division is experiencing continued growth as businesses look to expand with Honda in anticipation of peak season approaching for all four product areas.

Russell Gas & Mower Centre has taken on the Lawn & Garden franchise in Edinburgh, while Ernest Doe & Sons Ltd has expanded representation to their premises in Albourne. Other openings in Lawn & Garden include Burnside Garden Machinery in Glasgow, and Balgownie Ltd in Inverurie. In addition to L&G, AM Phillip (Agritech) Ltd has taken on the Energy franchise for Fraserburgh.

Mark Weatherhead Ltd now holds the ATV franchise in Royston, likewise Wilsons of Rathkenny Ltd in Ballymena.

Marine Division sees Motortech Marine Engineering gaining the franchise for Portsmouth, Rock Marine Services take the franchise in Wadebridge and a boat builder partnership has been established with

The continued investment into Honda franchises by existing and new partners illustrates that businesses have the confidence to invest in Honda Devon based Seaswift Boats, these changes greatly improve national coverage.

Honda (UK)’s Head of Dealer Development, Nick Campolucci commented, “The continued investment into Honda franchises by a variety of existing and new partners illustrates that despite challenging economic conditions, businesses have the confidence to invest in Honda.

“With an all new Civic recently launched and new CR-V to follow later this year, 2012 sees two key models in our car product line-up refreshed.

Similarly, motorcycles has seen seven new 2012 models launched, with several more planned throughout the year. These new products, along with our commitment to dealer commercial training, will maintain Honda’s place as motorcycle market leader.

“Our Power Equipment division also continues to introduce new products to their four market areas. This, when combined with a strategy to support dealers through stronger retail promotions, has been exceptionally well received by the dealer network and our customers.”

GLOBAL

Federal Mogul green patented tech boosts engine performance GLOBAL manufactures and supplier of a range of innovative solutions, Federal-Mogul has developed a patented dual-material cylinder liner technology to help reduce bore distortion and improve function in the latest generation of lighter, highly-loaded gasoline engines. The Hybrid Liner technology provides reliable, cost-effective, longterm performance while reducing engine oil consumption, especially in high-output aluminium engines with small interbore bridges and weight optimised designs.

The hybrid liner by Federal-Mogul integrates the liner into the aluminium block casting more effectively than alternative technologies, both structurally and thermally. It comprises a conventional cast iron sleeve with an aluminium coating applied to the exterior through a proprietary process. The cast iron sleeve provides good tribological properties and is compatible with costeffective ring packs.

“Federal-Mogul is helping engine manufacturers to increase the power output and durability of smaller engines, supporting them in a key area of their global CO2 reduction strategies,” said Federal-Mogul Vice President for Technology and Innovation, Powertrain Energy, Gian Maria Olivetti. “Cylinder bore distortion is one of the main factors limiting increases in power and torque outputs, particularly in lightweight aluminium cylinder blocks. Our patented Hybrid Liner increases the strength and stiffness of the combined block and liner assembly, allowing significant weight reduction without compromising engine performance and durability.”

Advantages The outer surface of the liner is manufactured to provide a surface topography that is conducive to mechanical interlocking with the aluminium block material. The liner coating is an AlSi12 alloy with a melting point below that of the aluminium engine block, which provides outstanding intermetallic bonding between the surfaces of the two materials. To meet the cost and robustness requirements of series production, the coating is applied in a process that uses advanced wire arc thermal spray technology to ensure that coverage, thickness and bonding strength are uniform around the complete height and circumference of each liner.

The coating surface roughness is also controlled, to provide undercuts and micro-porosities so that an extremely strong, intermetallic transition zone is formed between the coating and the block casting material.

“Compared to alternative

Federal-Mogul is helping engine manufacturers to increase the power output and durability of smaller engines, supporting them in a key area of their global CO2 reduction strategies—Gian Maria Olivetti, Vice President for Technology and Innovation, Powertrain Energy, Federal-Mogul

technologies, the Hybrid Liner reduces bore distortion in a running engine by two-thirds,” said Olivetti. “Maximum second order bore distortion can be as low as 11 percent of that experienced by corresponding cast-in liners, while the cylindrical distortion under operating loads is up to three times better. As a result, oil consumption is reduced by up to 40 percent.”

The company’s Hybrid Liner also results in up to 30 percent higher heat transfer rates, reducing the cylinder wall temperature by up to 40°C (104°F) compared to alternative designs.

Dynamic strength increases as well; in a cyclic pulsing pressure test, the Hybrid Liner showed no failure at pressures of up to 200 bar, whereas a standard liner block design cracked at 100 bar.

“The Hybrid Liner also allows engine manufacturers to improve packaging by reducing the distance between adjacent cylinders; pressure die-cast engine blocks with Hybrid Liners can have a material wall thickness of just three mm between the bores,” Olivetti added.

“If a water channel is drilled between two cylinders, the Hybrid Liner technology limits the formation of cracks, allowing coolant to penetrate only as far as the liner coating. Conventional liners can allow water to seep down the joint between liner and casting, reaching the crankcase and con-taminating the lubricating oil.”

Federal-Mogul’s Hybrid Liner is produced at its Powertrain Energy manufacturing facility in Friedberg, Germany. The technology was a finalist in the 2012 Automotive News Pace Awards.

JULY 2012 AFTERMARKET

59

PRODUCTS

Alcohol Detection Devices THE alcohol detection sensor is a device that is fitted into a car along with micro vehicle black box (VBB). The driver, after turning on the ignition, is required to blow into the sensor, which detects the presence of alcohol in his breath.

If the level of alcohol exceeds the permitted limit, the system sends an SMS alert to the authorised person’s mobile phone and stops the vehicle. The car can only be restarted via an SMS from the authorised person. Although accidents caused due to drunk driving cannot be completely stopped, a mechanism such as the alcohol detection sensor can definitely help in curbing the number of drunk driving accidents.

Micro Technologies (India) Ltd Navi Mumbai - Maharashtra Tel: 022-27686687 Mob: 09892560798 Email: besecure@microtechnologies.net Website: www.microtechnologies.net

Vehicle Security Systems THE crux of Micro VBB lies in the various sensors installed in the car.

The moment there is an unauthorised activity in the vehicle, the owner receives an SMS alert or an email on his mobile phone. Micro VBB is simple to operate and easy to use. The system can also be used to ward off intruders from the car as it detects unauthorised intrusions, communicates with the owner conveniently, tracks the car wherever it goes, and immobilises it with a simple SMS. It is a security and messaging device that detects any forcible intrusions in the vehicle and communicates the same to the owner. Moreover, it lets the user take control of his vehicle from anywhere in the world using a simple SMS from his mobile.

Micro Technologies (India) Ltd Navi Mumbai - Maharashtra Tel: 022-27686687 Email: besecure@microtechnologies.net Website: www.microtechnologies.net

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AFTERMARKET JULY 2012

Breath Analysers with Printer BREATH alcohol analyser detects alcohol in the breath and gives an audio-visual indication. It has a three-status technology, which includes bright graphic display, easy & quick testing, reading latching, nonvolatile memory, password protected critical menu settings, subject sample blow indicator, print readings with data & time, user selectable multiple number of prints for evidential record documentation etc.

The instrument is housed in a robust plastic enclosure.

Subtronics (India) Pvt Ltd, Mumbai - Maharashtra Tel: 022-2422 4461 Mob: 09448437845 Email: service@subtronicsindia.com Website: www.subtronicsindia.com

Chain Hoists THESE stainless steel chain hoists are made of SS304 and SS316 series stainless steel. The clean room hoist products are well-suited for lifting applications in washdown, environmentally controlled and corrosive processing environments. These are available in standard capacities up to two MT and feature sealed gearing, foodgrade lubrication and stainless steel hooks.

David Round, Inc Ohio - USA Tel: +1-330-6561600 Email: info@davidround.com, Website: www.davidround.com

Hydraulic Cranes THE truck-mounted hydraulic cranes (model Hydra-825) superstructure frames fabricated from high tensile steel plates and sections with mechanical superstructure lock operated from cab. The three-section fully synchronised fully telescoping box section boom is fabricated from high strength low alloy steel plates with internal and external welding. Boom derricking has single double acting hydraulic ram mounted on a large diameter bushes.

Til Ltd, Kolkata - West Bengal Tel: +91-033-25531352, Mob: 09833811406 Email: tilkmt@tilindia.com, Website: www.tilindia.in

PRODUCTS

Wheel Loaders THE wheel loader has payload capacity of 750 kg and transmission of heavy-duty sliding mesh with 6 forward and 2 reverse speeds.

This wheel loader comes with hydraulic brakes provided on the front wheels and mechanical brakes on the rear wheels. Some of the technical specifications include: bucket size six-cm, maximum height 4.1 mtr, dump height 2.68 mtr, top speed 29 kmph, engine of Simpson’s S433, four cylinder, water-cooled, diesel engine with rated power of 49 BHP @ 2,200 RPM, hydrostatically operated steering wheels with 4.7 mtr turning radius, hydraulic system tandem pump with two/three spools control valve, electrical system 12 V, negative earth with a single heavy-duty battery, optional buckets of 0.25 cu mtr to.75 cu mtr capacity fourin-one multi-purpose bucket, and operating weight of 5,500 kg.

Action Construction Equipment Ltd New Delhi Tel: 011-40549900, Mob: 09967047733 Email: marketing@ace-cranes.com Website: www.ace-cranes.com

www.oillubesystems.com

Quality Product

Tool Trolley

Tool Trolley

Multi Drawers Tool Trolley

Quick Service Trolley

Cost Effective

Quick Service Trolley

Oil Filtration Unit

Waste Oil Disposer Injector Cleaner & Tester

Oil Disposer

Oil Dispenser

Quick Service

Filter Cleaning Unit Heavy Duty Bike Lift

Heavy Duty Work Table

Parts Washer

Go- Jack

Transmission Jack

Dual Scissor Lift for Cars

Mobile Service Van

Dealers / Distributors Enquiries are solicited for : NE Guwahati, East Patna, South Chennai, Central - Nagpur -Lube System

s

O il

OIL LUBE SYSTEMS (AN ISO 9001 : 2008 CERTIFIED CO.)

Office : Badkhal Pali Road, Badkhal (Opp. Delhi Masjid) N.I.T. FARIDABAD - 121001 Works : Plot No. 32, Badkhal Enclave, N.I.T. FARIDABAD - 121001 (Haryana) INDIA Ph. : 0129-2430786, 2461646 Mob. : 09911244531, 09810460773 Fax : 0129-2430786 E-mail : marketing@oillubesystems.com; bnpandey.ols@gmail.com;

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PRODUCTS

Angle Polishers

Automotive Batteries

FEIN angle polishers WPO 14–15 XE always start with the lowest speed of 200 RPM, virtually eliminating any polish splashes.

This also prevents uncontrolled acceleration and holograms developing on sensitive paints as a result. A polishing set for all outside refurbishing applications on vehicles. Fresh paintwork can also be given a perfect finish. The set can be used with all Fein angle polishers. The Fein angle polisher’s two-stage gear reduction delivers a maximum torque, which in turn ensures that the set speed is maintained, even when high contact pressure is applied. There are the extensive accessories, such as those included in the Fein paint refurbishing and finishing set. These deliver the perfect finish in automotive applications—and are tailored to the corresponding paint requirements.

A wide range of automotive batteries are offered. The range of these automotive batteries consists of Tata green batteries, Exide green batteries and Amaron green batteries. These batteries are widely used in automobiles, such as cars, jeeps, tractors, two-wheelers, etc. The automotive batteries are available in different sizes and shapes as per the diverse requirements of clients.

Fein Power Tools India Pvt Ltd Chennai - Tamil Nadu Tel: 044-43578680 Mob: 09825063597 Email: info@fein.in Website: www.fein.in

Bhatia Battery House Ghaziabad - Uttar Pradesh Tel: 0120-4337837 Mob: 09212430899 Email: bbhmrt@gmail.com Website: www.transworld-compressor.com

Piston Compressors

THESE automotive parts enhance the efficiency of automobiles.

The automobile parts are precisely designed and engineered in order to ensure high durability and strength.

The range comprises gears, crack shafts, cross, shifter forks, and clutch collars. High durability, excellent performance and low maintenance of the range are some of their features.

THE RCP series of piston compressor is factory-built and tested for highest reliability of operation.

This is designed for ease of manoeuvring.

The compressor is useful for intermittent operations for wide range of applications.

It consists of two-7.5 hp. Model RCP-290 has twp hp, 230 V/50 Hz, bar 10 G, nine cfm, 90 ltr, etc; and comes in dimensions of 1,000 mm x 410 mm x 820 mm. It weighs 67 kg.

Ahujasons New Delhi Tel: 011-23943349 Mob: 09990469999 Email: michael@infomedia18.in Website: No website

Chicago Pneumatic Thane - Maharashtra Tel: 022-3998 2731, 9833489164 Mob: 09967047733 Email: ashish.malhotra@cp.com Website: www.cp.com

Automotive Parts

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PRODUCTS

Gas converter kits

Automobile fuses

THESE LPG gas kits are offered for all makes of motorcycles, such as Rajdoot, Bullet, Honda, Yamaha, Suzuki, Boxer, Pulsar, Freedom Caliber, etc. This retro fitment system is simple and quick to install on old/new motorcycles.

Motorcycles fitted with these revolutionary gas systems enjoy fuel saving up to 70 per cent, with no pollution and reduced maintenance cost. Unlike conventional car LPG kits, which are high-pressure kits, Klockner gas kits work on low pressure, hence are 100 per cent safe and specially designed for 2-stroke and 4-stroke motorcycle engines.

THE Maxi series automobile fuses are available in a higher range of amperage rating of 20 A to 80 A in 32 V AC/ DC. These fuses are physically larger in size as compared to other ATO and Mini series automobile fuses. Colour code is provided in each fuse for easy ampere identification. Larger fuses are widely used in automobile circuits for protection of wiring harness by replacing the fusible wire or fusible link, which is often a plain piece of small wire. The ATO series fuses are suitable for automobiles, trucks; whereas the Mini series fuses are suitable for buses, cars, etc.

Gas Tech Electronic Products (P) Ltd Dehradun - Uttaranchal Tel: 011-267 2540 Email: mailinfo@gastechproducts.com Website: www.gastechproducts.com

Sahil International New Delhi Tel: 011-2246 4894 Mob: 9899153952 Email: sahil2001@yahoo.com Website: www.sahil-india.com

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PRODUCTS

Rubber Auto Parts

Tyre Changers

A wide range of specially fabricated automotive parts are offered in compliance with quality standards.

These automotive parts are specially manufactured using quality materials. Also offered are automotive components, rubber auto components, auto mould parts, automotive rubber parts, automotive parts & components, etc.

The side swinging mounting arm of the tyre changer enables users to install it near the wall occupying very less space. Specially designed bead breaker handles rims very gently and safely.

Features include suitable for car and LCV tyres, side swing mounting arm, pneumatic twin cylinders for firm clamping, four-jaw self-centering chuck, alloy wheel plastic protector, bead breaking by pneumatically operated cylinders, clockwise and anti-clockwise rotation of turn table using electric motor, built-in FRLs, and motorcycle adopter (optional).

Genext Auto Industries Dist Buldana - Maharashtra Tel: 0726-263140, Mob: 09822271701 Email: genext_2007@rediffmail.com Website: www.genextindustries.com

Pneumatic Vibrators THE model TV-7200 turbine-type pneumatic vibrator is developed for material handling. This vibrator operates in any position. It is used to facilitate parts feeding in trays in the automotive industry, supply hoppers and chutes of chemicals and plastics production and in packing lines. The pneumatic vibrator is also used in screening, separating and sizing of fine and coarse powdered materials. In short, dislodge stubborn materials from hoppers or trays. Normal working pressure is six kg/cm².

San Air Tools Thane - Maharashtra Tel: 022-2534 1981,09819747122 Email: sanairtools@vsnl.net, Website: www.sanairtools.com

Hydraulic Oils

Manatec Electronics Pvt Ltd Puducherry Tel: 0413-2248926 Mob: 09344643104 Email: sales@manatec.net Website: www.manatec.net

Breath Analysers BREATH alcohol analyser is used to check for drunkenness of drivers before driving and avoiding disasters. It can be charged using the car cigarette lighter socket available in the car. It gives an audio alarm along with visual flashing on alcohol detection. It has features like 10 hours of continuous operation, low battery indication, car charging confirmation light, flashing alarm etc.

Subtronics (India) Pvt Ltd Mumbai - Maharashtra Tel: 022-2422 4461, Mob: 09821606439 Email: service@subtronicsindia.com Website: www.subtronicsindia.com

Timing Belt Drives

Jaybrol hydraulic oil is anti-wear, R&O type and HLP type. This oil is blended from high viscosity index base stocks containing anti-rust, anti-wear, anti-oxidant and anti-foam additives. The oil has good chemical stability and good demulsibility. The oil is recommended for use in hydraulic system, circulation system, machine tools, enclosed gearbox, compressor circulating oiling system, for industrial and automotive equipment. The hydraulic oil meets BIS:10522-1983, BIS:11656-1986 and BIS:30981988 specifications.

THESE belt drives are designed and manufactured with matching pulleys as per international standards.

The timing belt drives operate in applications requiring positive, nonslip power transmission. Precision moulded belt teeth are designed to enter and leave the matting grooves on the pulleys in a smooth manner with low friction.

Jay Bharat Lubricants (I) Pvt Ltd Mumbai - Maharashtra Tel: 022-2529 9990 Email: office@jaylube.com, Website: www.jaylube.com

Kwedos Belt Drives Pvt Ltd Ahmedabad - Gujarat Tel: 079-25507367, Mob: 09925111749 Email: info@kwedospulleys.com, Website: www.kwedospulleys.com

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PRODUCTS

Fire Alarm Control Panel

Low-Emission Tapes

MULTI-PROTOCOL intelligent fire alarm control panel (model ZX1e) is designed and constructed around proven and reliable microprocessor technology.

This simple approach has produced a modular, scaleable fire alarm platform suitable for protecting all types of premises. The fire alarm control panel supports a total of five industry-leading protocols, allowing fire detection devices to be independently selected based on performance or aesthetic appeal. The ZX series control panel seamlessly integrates with Apollo (Xplorer, XP95 and Discovery), Hochiki ESP, Nittan, Morley-IAS and system sensor detection device protocols.

THE LE-series (Low Emission), high-performance adhesive tapes meet the requirements for low emission values. These tapes fulfill VDA 275, VDA 200, DIN 75201A ISO 6452, DIN 75201B ISO 6452, solvent-free pure acrylic adhesive, free from resins & plasticisers, etc. The tapes are available with a variety of different carrier systems.

Security Vision Mumbai - Maharashtra Tel: 022-24322727 Email: shashank@securityvision.com Website: www.securityvision.com

Precision Bearings THE super precision bearing is used for machine tools spindle.

Machine tool application require superb performance in terms of running, rigidity, stability, noise level, speed and temperature stability.

Running accuracy class P4 and angular contact ball bearing with phenolic cage.

The high-precision angular contact bearings, double row cylindrical roller bearings and axial ball bearings are designed to satisfy these demanding requirements by machine tools. Angular contact ball bearings come in series of metric 71800, 71900, 7000, 7200 and 7300; and double row cylindrical roller ball bearings come in series of metric NN 3000 and NNU 4900.

Austin Engineering Company Ltd Jabalpur - Gujarat Tel: 02873-252223 Email: sales@aecbearings.com Website: www.aec-bearings.com

Lohmann Adhesive Tapes India Pvt Ltd Pune - Maharashtra Tel: 020-30220899 Mob: 09962547906 Email: yash.mittra@lohmann-tapes.com Website: www.lohmann-tapes.com

LED Destination Signs THE LED destination signs are used for public transit.

There are no limits to the readability of LEDs both from the side and from the bottom.

The bus front signs are readable as it gets closer to the stop and the side sign is readable when people are getting on the bus. Readability is optimised, thanks to the increase of contrast, due to the reduction of the reflected light. Bus destination signs are readable in all light conditions.

The auto-adjustment of the LED brightness, based on the levels of the surrounding ambient light environment, guarantees power consumption reduction while maintaining the readability of information at optimal contrast levels.

B R Electronics Chennai - Tamil Nadu Tel: 044-22456925 Email: brim@brimdisplays.com Website: www.brimdisplays.com The information published in this section is as per the details furnished by the respective manufacturer/ distributor. In any case, it does not represent the views of

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LIST OF PRODUCTS & ADVERTISERS’ Abs sensor cable/grommet ..................................................................FIC Alcohol detection device ........................................................................60 Alternatives ............................................................................................11 Angle polishers .......................................................................................62 Automobile fuses ....................................................................................63 Automotive batteries ..............................................................................62 Automotive dealership excellence awards ................................................8 Automotive lighting ...............................................................................13 Automotive parts ....................................................................................62 Batteries ..................................................................................................11 Body shop equipments .............................................................................3 Brake pads ..............................................................................................11 Breath analyser .......................................................................................60 Breath analyser with printer...................................................................60 Car pad ...................................................................................................19 Chain hoists............................................................................................64 Clutch plates & cover assemblies ...........................................................11 CNC/VMC machines ......................................................................... BC Dust cover............................................................................................FIC Exhibition - Automach 2013 ...................................................................4 Exhibition- Engineering Expo ................................................................6 Filter cleaning unit .................................................................................61 Filters......................................................................................................11 Fire alarm control panel ........................................................................65 Fluid seals ...............................................................................................61 Fuel bowl .............................................................................................FIC Garage equipments ................................................................................32 Gas converter kits ...................................................................................63 Gasoline systems ....................................................................................11 Gear pumps ............................................................................................11 Go-jack ...................................................................................................61 Heating solutions ................................................................................BIC Heavy duty bike lift................................................................................61 Horns ......................................................................................................11 Hydraulic cranes.....................................................................................60 Hydraulic oils .........................................................................................64 Hydraulic parking lift ............................................................................61

Hydraulic press .......................................................................................61 In-dash Navi-tainment systems .............................................................19 Instant drying & curing technology for water based colour...............BIC Laptop trolley .........................................................................................61 LED destination signs ...........................................................................65 Lighting ..................................................................................................11 Low-emission tapes ................................................................................65 Lubricants...............................................................................................11 Lubrication equipments ...........................................................................3 Mobile service van ..................................................................................61 O’ rings ...................................................................................................61 Paint protection fi lm ...........................................................................FIC Paint shop equipments .............................................................................3 Parts washer............................................................................................61 Piston compressor...................................................................................62 Pistons ....................................................................................................17 Pneumatic vibrator .................................................................................64 Portable navigators .................................................................................19 Precision bearings ..................................................................................65 Relays......................................................................................................11 Rubber auto parts ...................................................................................64 Sealing ....................................................................................................61 Shift lever screen .................................................................................FIC Socker observers .....................................................................................63 Spark plug ...............................................................................................11 Starter motor ..........................................................................................11 Timing belt drives ..................................................................................64 Tool trolley .............................................................................................61 Transmission jack ...................................................................................61 Tyre changer ...........................................................................................64 Vehicle lifting equipments .......................................................................3 Vehicle mover .........................................................................................61 Vehicle security system ..........................................................................60 Waste oil disposer ..................................................................................61 Wheel loader ..........................................................................................61 Wiper blades ...........................................................................................11

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

Pg No. Advertiser ..............................................Tel ................................E-mail ........................................................Website 8 ..........ADEA ..................................................... . ............................................................................................................ www.adea.in 23.......... Ask Me ............................................................... +91-35555555...................... twitter.com/AskMe_35555555...........................www.facebook.com/AskMe.infomedia18 11 ........Bosch Limited......................................... +91-80-22999228 ............................................................................... www.boschindia.com 19 ........C E Infosystem ....................................... +91-11-46009999..........kavi@mapmyindia.com............................... www.mapmyindia.com 4 ..........Confederation Of Indian Industry ........ +91-124-4014060 .........rachna.jindal@cii.in..................................... www.jetfindia.in 6 ..........Engineering Expo .................................. +91-09819552270 .........engexpo@infomedia18.in ........................... www.engg-expo.com 17 ........Federal Mogul......................................... +91-124-4784530 .......customercare.india@federalmogul.com ..... www.federalmogul.com 13 ........Fiem Industries Ltd ................................ +91-9991702453............s.narayanan@fiemindustries.com ............... www.fiemindustries.com 32 ........Icon Autocraft ......................................... +91-9873337373............info@iconautocraft.com .............................. www.iconautocraft.com 63 ........Kyb Asia Co Ltd ..................................... +91-9871687888 ...........anup73@sify.com......................................... www.kyba.co.th BIC .....Litel Infrared Systems Pvt Ltd .............. +91-20-66300636 .........sales@litelir.com .......................................... www.litelir.com FIC .....Lubrizol Advanced Materials India P ... +91-22-66027800 .........santosh.mishra@lubrizol.com ..................... www.lubrizol.com 61 ........Oil Lube Systems.................................... +91-129-2430786 ..........marketing@oillubesystems.com 61 ........Puja Fluid Seals Pvt Ltd......................... +91-20-27112016 ..........sales@pujaseals.com .................................... www.pujaseals.com 3 ..........Venza Automotive India Pvt Ltd........... +91-422-4223246 .........info@venzaautomotive.com........................ www.venzaautomotive.com BC ......Yamazaki Mazak India Pvt Ltd............. +91-2137-668800..........sudhir_patankar@mazakindia.com ........... www.mazak.com Our consistent advertisers

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