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NEWS IN BRIEF Pulse in petrol Our Bureau New Delhi
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enault India launched the petrol variant of the premium hatchback—the Pulse. The car, available in three variants is priced between `4.25 lakh and `5.55 lakh (ex-showroom Delhi). According to the company, the vehicle offers fuel efficiency of 18.06 kmpl and delivers maxi-
mum power of 76 PS@ 6,000 RPM and peak torque of 104 nm@ 4,000 RPM. The engine is mated to a fivespeed manual transmission. Same as the Pulse diesel K9K engine. The new Pulse petrol engine is manufactured locally at the Renault —Nissan Alliance factory located in Oragadam, Tamil Nadu.
Industry gets dull start for new fiscal Our Bureau Mumbai
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uto sales began on a dull note with growth in sales in most vehicle segments hovering at a single digit rate. Passenger vehicles segment grew at 9.3 percent during April 2012 over same month last year. Within PV segment, passenger cars grew by 3.4 percent, utility vehicles grew by 47.32 percent and vans grew by 6.74 percent in April 2012, as compared to same month last year. The overall growth in domestic sales in April 2012 was around 10 percent over 2012, according to SIAM. The M&HCV segment registered a negative growth of 11.6 percent but LCV grew at 15.83 percent. The overall CV segment was up by 4.37 percent in April 2012 as compared to last year. Three-wheelers sales recorded degrowth at (-5.35) percent andthe two-wheelers grew by 10.94 percent in April 2012. Also, the overall exports went up 1.29 percent while PVs registered negative growth at (-10.47) percent in the month. CVs and three-wheelers also recorded deceleration at (-13.62) percent (-20.50) percent respectively.
Vol. 12 No. 12
www.a m onli ne.i n
14 May 2012
32 Pages
FOCUS
` 50
INTERVIEW
MACHINING
Pg 9-14
“OUR KEY PRIORITY IS LOCALISATION AND DELIVERING OUR BENCHMARK PRODUCTS TO OEMS” Michael Hankel, CEO, ZF Lenksysteme GmbH
Pg 8
Ace Micromatic to kick off Chinese facility T Murrali Bangalore
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ragati Automation, the wholly owned subsidiary of the Bangalore-based Ace Micromatic Group, is all set to commence commercial production from July. The company is currently giving fi nishing touches to its manufacturing facility, which has been built on a four-acre plot in Jiaxing in Zhejiang province, about 150 km from Shanghai. Speaking to Auto Monitor, CEO, Micromatic Machine Tools Ltd (the customer connect arm of the Ace Micromatic Group), TK Ramesh said, the group is settingup the manufacturing facility in China to fulfi l market commitments and also to support the requirements of machine building OEMs comprising both, local and multi-national companies. The company will make, among other things, tool turrets and automatic tool changers. Initially it will manufacture about 1,000 units per annum against the installed capacity of 5,000 units. The production will ramp-up according to the demand, he said. Elaborating on the operations, Ramesh said Pragati Automation will source castings locally and
carry out the machining process before assembling the products with the components imported from India. In terms of value, about 60 percent of the products will be imported, he said. The cost of manufacturing in China is more when compared with India especially for the wholly owned foreign enterprises like Pragati, he said. However, the company was incepted to support its MNC customers who are present in China, as local presence would help in offering better service during development as well as regular supply. It will be supplying components to a host of MNC customers including DMG and a range of local customers including Shenyang Machine Tools. Around ten percent of the components might go to end customers. Depending upon the demand, Pragati Automation might look at setting-up another facility in China in the future, he indicated. From its facility in India, Pragati exports about 40 percent of its products; of which about ten percent goes to China and the rest to Europe. In addition, Ace Micromatic Group is setting-up a greenfield facility for its group company, Ace Designers in Dobbospet, about 35 km from Bangalore. The facility, which is the eleventh one for the
group and seventh one for Ace Designers, will be up and running before the end of the current fi nancial year. In addition to manufacturing lathes, the plant facility will have a foundry to support the group companies’ casting requirements. Initially, it will produce about 1,000 metric tonne of casting a month, which will increase by another 50 percent when the plant is fully operational. It is a strategic decision for the company to have a foundry as it has been facing supply constraints for some time. The Dobbospet facility will also have 10 acre earmarked for vendor park to primarily encourage suppliers. In 2011-12, the group sold about 3,000 lathes and 1,000 machining centres and it hopes to grow by 25 percent in the current fiscal. Last year the company exported 300 machines including 265 lathes to few major markets including China, Turkey and Taiwan. Besides, it also exported to Germany, France and
Pragati Automation’s China Facility
Australia. While consolidating its exports in other markets in the current fi scal, it will focus aggressively on Turkey, he said. Ace Micromatic Group has five companies and brands such as Ace Designers, Pioneer CT, Pragati, Micromatic Grinding Technologies and AMS. All these brands are supported by Micromatic Machine Tools to service their customers. The group reported a turnover of `1,147 crore in 2011-12 against `820 crore reported in the previous year. It hopes to register about `3,000 crore as turnover by 2015 and become a $one billion company (about `5,000 crore) by 2020, he said. It has been growing at more than 25 percent CAGR for the last five years after it implemented ‘Flow-line Methodology’, which resulted in a three-fold increase in productivity.
Precision Camshafts set for China presence of camshafts for the passenger car segment globally. The company has joined hands with Ningbo Shenglong olapur-based Precision Group, a leading auto compoCamshafts Ltd (PCL) is nent supplier to Ford in China, laying the groundwork for to manufacture and supply a major manufacturing camshafts for passenger car presence in China even as it has OEMs. PCL signed a JV agreeemerged as the leading supplier ment with Shenglong Automotive Powertrain Systems Co Ltd in February this year. The joint venture compa ny will be called Ningbo S h e n g lon g PCL Camshafts Co Ltd and will be the contact point for PCL to introduce new technologies and solutions for the Chinese market. A machine shop is being set-up to Precision Camshaft’s Solapur Facility cater to the needs of
Abhishek Parekh Mumbai
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PCL customers in China. The plants will be commissioned and operations are slated to begin by October 2012. The JV would be initially looking to supply around two million units per annum mainly for meeting Ford’s requirements and subsequently grow its presence in the Chinese automotive sector. The Chinese partner would hold the majority stake in the 75:25 joint venture established as the Chinese outpost for PCL with the assistance of Ford. “It is imperative for us to have a major presence in China given the size and nature of the market. We would initially supply raw camshafts from Indian unit and would subsequently establish a manufacturing base there for local customers,” said a senior company official. The company has earmarked around `200 crore for setting-up a machining facility
by next calendar year and a foundry by 2014. The company foundry capacity has already touched around one million camshafts per month making PCL one of the largest camshafts suppliers globally. It plans to notch up revenues of around `500 crore over the next two years from domestic operations alone. The company has invested around `130 crore in the last fiscal for expansion of foundry and machining capability to meet the customer demand from passenger car segment in India and other international markets. PCL is headquartered in Solapur, Maharashtra (India) and has presence in North America, UK, Germany, Austria, Sweden, Hungary, Russia, India, Korea, China and Brazil. It supplies over 150 different camshafts clients ranging from railways, tractors & small & mid segment cars.