Auto Component Industry in India: Growing Capabilities & Strengths

1. Auto Component Industry in India: Growing Capabilities & Strengths

2. India: A Growing Economy Automotive Industry in India Auto Component Industry in India ACMA Korea In India Capabilities & Challenges The Way Forward Delegation Details Agenda

3. India: A Growing Economy

4. Largest Democracy – 1.2 billion people, Growing Middle Class 2. 4th largest GDP (PPP) and 10th largest GDP (Nominal, USD 1.8 trillion) 3. One of the fastest growing economies - Estimates for 2012-13: ~6% India’s average GDP growth rate: 8.4% over past 5 years Expected to outpace China in the next decade . 4. 3rd Largest Investor base in the World 5. Robust Legal and Banking Infrastructure 6. Demographics Advantage – Youth driven economy India: A Vibrant Economy

5. Automotive Industry in India

6. Rapidly growing presence of Global OEMs - Passenger Car 2007 2012 6 (Illustrative List)

7. Passenger Vehicles Production (’000 units) * • CAGR 2009-13: 15% • CAGR 2013-21: 13%* * Figures for financial year – April to March (* Estimates) 7

8. Other Vehicles Production Commercial Vehicles ( ’000 units) Tractors * * • CAGR 2008-13: 19% • CAGR 2013-21: 14%* • CAGR 2009-13: 15% • CAGR 2013-21: 6%* * * Commercial Vehicles include: • Small Commercial Vehicles (SCV) < 1 ton • Light Commercial Vehicles (LCV) > 1 ton but < 7.5 tons • Medium Commercial Vehicles (MCV) > 7.5 tons but <16 tons • Heavy Commercial Vehicles (HCV) > 16 tons Two & Three Wheelers Construction Vehicles * * • CAGR 2009-13: 17% • CAGR 2013-21: 8%* * • CAGR 2011-21: 14%* * 8 Figures for financial year – April to March (* Estimates)

9. Auto Component Industry in India

10. Auto Component Industry Profile - Turnover * • CAGR 2008-12: 12% • CAGR 2013-21: 14%* * USD billion * Figures for financial year – April to March Comprehensive Product Range (* Estimates) 10

11. Auto Component Industry Profile - Exports * • CAGR 2008-12: 22% • CAGR 2013-21: 16%* * * USD billion Figures for financial year – April to March (* Estimates) Export Destinations 11 OEM/Tier 1 account for 80%; Aftermarket for 20%

12. ACMA: Strengthening linkages with Indian Automotive Industry

13. About ACMA Established in 1959 Apex body of Auto Component Industry in India 675+ members from the Organized sector Represents 85% of the Industry by turnover Represented on all Government and Industry bodies – Strategic to the Auto Sector Offices across all Regions in the Country An ISO 9001-2008 Institution ACMA – Excellence in Service Delivery

14. ACMA Services • Promotes Indian Automotive Component Industry • Trade Promotion • Technology Up-gradation • Quality Enhancement • Collection &Dissemination of Information • Vital Catalyst for Industrial Development 14

15. Auto Component Industry Profile - Imports * • CAGR 2008-12: 11% • CAGR 2013-21: 13%* * USD billion * Sources of Imports Figures for financial year – April to March (* Estimates) 16

16. Vision 2020: Indian Auto Component Industry 150 85 USD Billion 56 E-Estimated *New Methodology followed from 2011-12 onwards Source: ACMA - EY Vision 2020 Total Industry Potential: USD 150 billion by 2020

17. Korea In India

18. Major Korean Tier1 players presence in India An Illustrative list: • Daerim Enterprise Co. Ltd. • Donga Manufacturing Corp. • Dymos Inc. • Hwashin Co. Ltd. • Iljin Corporation • Infac Corporation • Jin Young Industries • KCW Corporation • Komos Co. Ltd. • Kwang Jin Sang Gong Co. Ltd. • Kyungshin Industrial Co. Ltd. • L S Mtron • Mando Corporation • Mobis • MyungHwaInd Co. Ltd. • NVH Korea • Oto Co. Ltd. • PyeongHwa Automotive Co. • Sung Woo Hitech Co. Ltd. • SL Corporation • Yongsan Co. More than 50 JV…

19. India-Korea Auto Component Trade USD Million • Growth of Imports from Korea: 3% ( 2012/ 2011) • Growth of Exports to Korea: 1% (2012/ 2011) 20

20. Biggest Korean Success Story in India

21. Making Vehicles for India Vehicle for worldwide export 2nd biggest car Manufacturer in India

22. Capabilities & Challenges of Indian Component Suppliers

23. Advantage India India is fast becoming a favored investment destination for its….. Respect for Intellectual Property Democratic Judicial System Large and growing Domestic demand Indian Auto Component Industry Conversant with Global Automotive Standards Product Development Capabilities Strong Entrepreneurship High Quality Standards Flexibility in Small Batch production Export incentives and favorable currency Growing IT capabilities Availability of skilled manpower English Speaking …..Key drivers enabling capability and growth of Indian component suppliers Source: CRIS INFAC; BMI; IBEF

24. Increasing focus on Innovation and Research Design & Research Centers of leading Global companies in India • Honeywell • Hyundai • Intel • Magna • Motorola • Mercedes Benz • Microsoft • Renault Nissan • Suzuki • Valeo • AMD • Boeing • Bosch • Caterpillar • Continental • Cummins • Ford • GM • GE • Honda (Illustrative List)

25. Challenges – Typical of a high Growth Emerging Market Raising Capital & Scaling Capacities Infrastructure Challenges Roads Ports Power Inflation Timely Government decisions R&D Competence

26. Advantage Jamshedpur Huge Opportunities Developing Indian Suppliers as supply base Low cost manufacturing model Frugal Engineering

27. Fully Developed Industrial City: The House of Tata Group

28. Availability of Ferrous Raw Material

29. World Class Power Availability: JUSCO POWER by TATA

30. Road Infrastructure

31. Successful Joint Ventures & Technology Transfers in Jamshedpur Hitachi Cummins Klein Kyocera Cikautxo Coop Nippon Steel Metaldyne

32. The Way Forward

33. Potential areas of Cooperation Opportunities for • South Korean SMEs to invest in green-field manufacturing in India • Partnerships with Indian SMEs - Product and Process Technology. • Supply Base discovery in India. • Strategic Alliance to supply to Global customers. • Joint R&D with Indian companies for new product development, designing and Testing. • JV opportunities to supply to India based OEMs.

34. Win-Win Scenario

35. Delegation Profile Jamshedpur Auto component Industry

36. SAMARTH ENGINEERING CO. PVT. LTD. Adityapur - Kandra Road. Adityapur, JAMSHEDPUR 832109 INDIAContact No. +91 657 6622666Web site : www.samarth.biz Mr. Killol Kamani Managing Director Mission Leader FACTS Established in 1976 Company is part of Jamshedpur ( Eastern India ) based “KAMANI GROUP”, which has for four  Generations served automotive Industry. We are an ISO / TS - 16949:2009 Certified Company by "CERMET” We manufacture Pressed, Fabricated Components, Skin Panels and Assemblies for Chassis & Body Assemblies for Heavy Commercial Vehicles. Our Valued Customers (OEM): TATA MOTORS LTD., TML DRIVELINES LTD.                   (Tier 1 ): RSB Global Ltd., BRAKES India Ltd., Auto Profiles Ltd. We are one of the Preferred Suppliers of Sheet Metal Components, Skin Panels and Assemblies to TATA MOTORS LTD., at Jamshedpur & Lucknow because of our Quality and On Time Delivery to adhere to their 100% Schedule. We are practicing / maintaining , on regular basis, the learnings from various Cluster Programs that we have completed, such as - Visual Factory, 5S, Safety, KAIZENS, POKA YOKE, Continual Improvement Processes with support of Total Employee Involvement. QUALITY POLICY : We are committed to achieve absolute Customer satisfaction by exceeding Customer expectation in Quality, Cost, On Time delivery, Technology and Attitude by addressing their concerns through Continual Improvement to increase customer Trust & Confidence in " SAMARTH ENGINEERING ”.

37. METALDYNE INDUSTRIES LIMITED.  21-A, Phase VI, Industrial Area Gamharia, Jamshedpur - 832108 INDIA                                             Contact No. +91-657-654391Web site :www.metaldyne.com e-mail : sanjay.sabherwal@metaldyne-india.com • FACTS • Established in 1992 • Part of Sabind group. Other companies including a Ferrous • foundry & Investment company. • Joint Venture with Metaldyne, US since 2000. • TS 16949:2009 certified. • ISO 14001 certified • Export more than 5.0 mln, auto components for OEM application since 2000. • Customer base in North America, South America, Europe, Japan, Thailand & India. • Customers : International: Cummins, Nissan, Volvo, Ford, Metaldyne. • Domestic : Tata , AMW. • Supplier for precision machined auto components, Flywheel Assemblies, • Vibration Dampers, Axle components, Pulleys, Ferrous castings. • Group Sales USD 50mln. • Operational focus on 5S, Safety Lean manufacturing, Poka yoke & Kaizen. Dy. Mission Leader Sanjay Sabherwal Managing Director

38. Mr. RanjotSingh Managing Director Emdet Jamshedpur Pvt. Ltd.B-7& 8, Industrial Estate, Adityapur, Jamshedpur 832 109, Jharkhand Website: www.emdetjsr.com FACTS Year of Commencing Production: 1978 Products Manufactured: Emdet Jamshedpur, is renowned company offering multi-appliction automotive rubber products like Silicone Hose, Radiator Hoses, Flexible Rubber Hoses,Molded Radiator Hoses, Moulded Rubber Parts, Engine Mountings, Metal to Rubber Parts, Flexible Fuel tubes etc. for automobile industries. Number of Employees: 210 Quality Systems Standard: ISO/TS 16949:2009, by CERMET, Italy Sales Turnover (2011-12 in US $ Mln): 8.62 Principal Customer:- Domestic (OEM): Tata Motors Ltd.(Jamshedpur, Pune, Lucknow), Ashok Leyland Ltd.(Chennai), Volvo India Ltd.(Pithampur, Indore), Tata Commins.(Jamshedpur) Domestic (Tier I):Banco Products India Ltd.(Jamshedpur & Vadodara Units), RSB Transmission Ltd.(Jamshedpur), Tata Toyo Radiators Ltd.(Jamshedpur & Lucknow Units), AlkraftThermotechnologies Pvt. Ltd. Joint Venture with Neff Perkins, USA & are supplying rubber GASKETS

39. Mr. Sanjay Kumar Singh Managing Director Highco Engineers (P) Ltd.B-23 & 25, 1st Phase Industrial Area Adityapur, Jamshedpur 832 109, JharkhandWebsite: www.highco.co.in FACTS Established in the year 1979 Manufactures sheet metal stampings and fabricated assemblies for the leading automotive OEMs’ and Earth Moving Machinery manufacturers in the country. Associated for the past 35 years with Tata Motors. Highco group is also into Construction Industry (Building Facades) through its sister concern ‘Kharkai Building Systems Private Limited’ Sheet Metal Auto Components Manufacturer Established in the Year 1979 Annual Group Turnover of ( USD 18.44 million ) Suppliers to OEM’s like Tata Motors Limited ( Jsr-Lkw-Pune) Tata Marcopolo ( Dharwad ) Wabco TVS India Ltd. (Sundaram Clayton) Tata Hita ( Jsr-Dharwad-Khagadpur) RSB Group ( International Auto ltd ). Tata Johnson Control

40. Multitech Auto Pvt. Ltd.A-5, Near Industrial Estate, Adityapur,Jamshedpur 832 109, JharkhandWebsite : www.malauto.com AtulDua Managing Director FACTS Managing Director: Mr. Atul Dua Chief Executive: Mr. Surendra Gadia, COO Sales-in-charge: Mr. SuvroJoti Paul Export-in-charge: Mr. BikramjeetBhardwaj Production-in-charge: Mr. Dinesh Kumar Sinha Year of Commencing Production: 1996 Products Manufactured: Machining Hardened and Ground Components Number of Employees: 118 Trade Marks: MAL Quality Systems Standard: ISO/TS 16949 by BSI Sales Turnover (2011-12 in US $ Mln): 7.43 Principal Customer:- Domestic (OEM): Tata Motors Ltd., WABCO, Tata Cummins., Telcon., TRF., AMW. Domestic (Tier I): York Transport Equipments Ltd.

41. ASL Industries Pvt LtdC-54, 55, 56, IVth Phase, Adityapur industrial Area, Gamharia, Jamshedpur – 832108, Jharkhand.Phone: +91-657-3099888, 6571890 Email: aslijsr@yahoo.co.inVisit us at: www.aslgroup.in Mr. DilipGoyal Chairman & Managing Director FACTS Products Manufactured: Sheet metal pressed components including cross and long members, Forged and machined components, and their assemblies for commercial vehicles, utility vehicles and Agricultural Tractors. No of employees: 345  Quality Policy: Our constant endeavor is to manufacture products of pre-eminent quality that confirm to the customer’s need consistently by strict conformance to specification, competitive cost, on time delivery and to strive for excellence through the implementation of the Quality Management Systems, fulfilling Quality Objectives and continual improvement in our systems and technology. Quality certification: ISO/EMS 14001, ISO/TS 16949 and ISO/OSHAS 18001 Sales Turnover (US $ Mn for Year 2012-13): 8.24 Principal Automotive Customers Domestic: Tata Motors, York India Pvt Ltd, JOST

42. BMC MetalcastPvt. Ltd.A-18,19, Phase II, Industrial Area, Adityapur,Jamshedpur 832 109, JharkhandWebsite: www.bmcmetalcast.com FACTSManufacturers of SG Iron ( Ductile Iron ) & Cast Iron Castings & Components Manufacturing Facilities a) 2000 Kg. / 1500 KW Dual Track Induction Furnace b) 1000 Kg. / 750 KW Dual Track Induction Furnace c) 500 Kg. / 450 KW Dual Track Induction Furnace d) ARPA 900 Molding Machine – 1 Pair ARPA 450 Molding Machine – 2 Pairs e) Full fledged Metallurgical & Metrological Laboratories f) CNC Machine Shop with Turning Centers , VTL & VMC’s g) Installed Capacity: 17,500 MT / annum Quality Certification We are a TS 16949 : 2009 Certified Company and are now going in for ISO 14001 Certification . Major Customers: 1)      M/S Tata Motors Ltd., & its group industries , Jamshedpur , Pune   &   Lucknow 2) M/S Automotive Axles Ltd. ( A Meritor Group Company ) 3)    M/S Metaldyne Industries Ltd. , Jamshedpur 4)      M/S  York Equipments Ltd., Pune 5) M/S Tata Steel Ltd., Jamshedpur Mr. Deepak Dokania Executive Director

43. Singhbhum Machinometal Pvt. Ltd.B-32, 2nd Phase, AdityapurIndustrialArea, Jamshedpur - 832109, INDIAContact No: +91-657-6552164Email: info@smpljsr.com Mr. O. P. Chopra Managing Director FACTS Year of Commencing Production: 1979 Products Manufactured: Precision machined wheel and axle components for heavy commercial vehicles like – Hubs, Differential Case and Differential Covers. Pinion Housings and Brackets. Fabricated sub-assemblies for Commercial Vehicle Engines like – Turning Tubes, Support Tubes, Pedal Levers, Link Rods and Gear Shifting Levers. Number of Employees: 91 Quality Certification: ISO/ TS-16949:2009 Sales Turnover (2011-12 in US $ Mln): 3.5 Principal Customer:- Domestic (OEM): Tata Motors Limited, Tata Motors Drivelines Limited, Tata Motors Limited (Lucknow), Ramakrishna Forgings Limited, Axles India Limited

44. Conclusion Growing Indian Economy Automotive Industry - Double Digit Growth in all segments India fast emerging as hub for Global Vehicle Programs 2020 : USD 113 billion Auto Component Industry Growing Engineering and IT capability for Designing & Manufacturing Respect for IPR Opportunity to Partner in Product & Process Innovation Opportunity to Outsource for OEMs/T1s and Aftermarket India: The Gateway of Growth 45

45. Thank you for your Kind Cooperation & Support Connecting India to the World for any assistance contact ACMA The Capital Court, 6th Floor, Olof Palme Marg, Munirka, New Delhi – 110 067Tel: 011-26160315, Fax: 011-26160317E-mail: acma@acma.in, Website: www.acma.in