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PRICOL

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PRICOL

Vision

Strive for excellence in all we do through socially and environmentally acceptable means.

Mission

Pricol will have market leadership through customer delight. We will be a responsible corporate citizen and share the benefits with society.

We will make our customers, employees, suppliers and shareholders feel proud of our association and want a long-term relationship with us.

Core Value Respect and concern for individuals   Customers, Employees and Suppliers - Partners in the Value Chain Encourage innovation and improvement; accept noble failures through Continuous learning

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Quality Policy

Pricol will provide value and satisfaction to customers on products and services. This will be achieved through: · Systematic training and motivation of employees· Complying with customer requirements and applicable statutory/regulatory requirements· Continually improving the efficiency and effectiveness of the Quality Management Systems

TPM Policy

Establish an excellent Total Productive Manufacturing system with total involvement of all employees to achieve utilization of all resources.

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LOCATION

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GROUP COMPANY’S

PRICOL ACADEMY OF EXCELLENCE

PACE is part of three decade old renowned PRICOL Group .PACE is involved in Assessing & Building Individual / Basic Competencies (Soft Skills) through Experiential Learning & other methods.

It focus on Students (10 years & above), Executives, Professionals & Individuals from all walks of life.

It has a well equipped Campsite adjacent to Tamara Resort, Perumal Kovil Pathy, Karunya PO, Coimbatore. (40 minutes drive from Coimbatore city)

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PRICOL TECHNOLOGY

Pricol Technology engages in a unified approach in product development aimed to provide maximum flexibility to customers.

The capacity to reach the vision is inherent, being a part of the $140 million Pricol Group.

Strive to maintain mutually profitable long lasting relationship with customers, suppliers and partners in the value chain.

Thus ensuring the functionality, performance and reliability of the product and process.

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PRICOL CORPORATE SERVICES

The parent company had developed Pricol Corporate Services to originally, deal with its in house service demands. It was now looking to move beyond this domain into the public sector.

As an end-to-end solutions provider, pricol services include styling, vehicle interiors, Electronics & embedded, mechanical & mechatronics, rapid prototyping, multi-body engineering, computational fluid dynamics crash & NVH, tool design, plastic, die-cast. Machined components, product life cycle management and cad customization . .

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XENOS TECHNOLOGYXenon Technologies Ltd was created in the year 2002 to market and service a range of high end automotive accessories in the Indian market.

The plan being to bridge the wide gap between the requirements and need of the Indian automotive customers and technologies available worldwide.

XENOS Auto Boutique, the one stop shop for buying and installation of automotive accessories. These boutiques at Chennai and Coimbatore create a unique environment to enable our customers’ purchase a wide range of products. Professional installation at these locations is the cornerstone of our service.

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PRICOL CARGOPricol Cargo, accredited IATA cargo agent is endeavoring to set standards in this arena of cargo handling. PRICOL is gaining a name as a renowned cargo clearing and freight forwarding agent among leading importers and exporters. Today, Pricol Cargo is handling good number of shipments.

Pricol cargo is associated with Integrated Global Logistics Network (A part of World cargo Alliance Family) to cater the end to End Supply Chain Solution needs of its Customers across the Globe.

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Organisational Structure

• Vijay Mohan Chairman and Managing director• Suresh Jagannathan Director• D Sarath Chandran Director• Yoshihiko Kato Alternate Director• R Vidhya Shankar Director• Vikram Mohan Director• K Murali Mohan Director

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• Vanitha Mohan Executive Director• C R Swaminathan Director• Mitsuhiko Masegi Director• V Ramakrishnan Director• M Lakshminarayan Director• G Soundararajan Director• K Udhaya Kumar Director

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JOURNEY TO PRICOL...

Component Manufacturing Shop which turns out precision components

Sheet Metal Component Manufacturing Shop

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Plastic Component Manufacturing Shop Tool Room

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Screen Printing Shop

Inhouse-built Special Purpose Machines for Component Manufacturing

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Instrument Assembly Line Transfer Line for assembling Cross-coil Movements

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Products

INSTRUMENT CLUSTER FUEL LEVEL SENSOR SECONDARY AIR VALVE

OIL PUMP

VEHICLE SECURITYSYSTEM

AUTO FUEL COCKS

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SPEED SENSOR

AUTO DECOMPRESSION

FUEL FEED PUMP

OIL LEVEL SWITCHESCHAIN TENSIONERS

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Sintered ComponentsGearsHubs Valve Plates Oil-less Bearings Gear Shifter parts Pistons

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TESTING

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QUALITY CERTIFIED PRICOL: ISO 9001

• Quality System in Pricol proposes the organization structure, responsibilities, procedures, guidelines and resources for implementing Quality Management

• Pricol is one of the first few auto ancillaries in India to be awarded the ISO 9001 certification. Since then on continues basis, pricol upgraded its quality system to TS 16949 and then to ISO/TS 16949 since August 2004. In addition pricol is also certified for ISO 14001 since July 2003.

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• Design and quality are ascertained through Quality Function Deployment (QFD), Design of Experiments (DOE), Design FMEA, Design Review, Design Verification and Design Validation.

• Process quality is implemented through Quality Plan, Process FMEA, Process Control, Mistake Proofing and Process / Product Quality Audit.

• The facilities of Pricol's well-equipped Metrology Lab offers calibration service along with Measurement System Analysis (MSA) traceable to National / International standards.

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KEY FACTOR(CUSTOMERS)

• MOTORCYCLE,SCOOTER,3-WHEELER

  Bajaj Auto, India   Royal Enfield, India

  Beldeyama, Turkey   Suzuki, India

  Derbi Nacional, Spain   Suzuki, Malaysia

 Egyptian Light Transport, Egypt

  Suzuki, Philippines

  Hero Honda, India   Suzuki, Thailand

  Honda, India   TVS Motors, India

  Kinetic Engineering, India   Victory, USA

  Kinetic Motors, India   Yamaha, Europe

  Piaggio, Italy   Yamaha, India

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  Fiat, India

  Ford, India

  General Motors, India

  Hindustan Motors, India

  Honda Siel Cars, India

  Magyar Suzuki, Hungary

  Mahindra & Mahindra, India

  Mahindra Renault, India

  Maruti Udyog, India

  Saipa, Iran

  Tata Motors, India

  Toyota Kirloskar Motors, India

CARS, SUVs AND MUVs

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Ashok Leyland, India

Askam, Turkey

BMC, Turkey

Eicher Motors, India

Force Motors, India

Mahindra & Mahindra, India

Oshkosh, USA

Pierce, USA

Swaraj Mazda, India

TRUCK and BUSES

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COMPETITORS

Company Profit

Bosch 590.65

Exide Industries 537.09

Motherson Sumi 178.45

Amtek Auto 143.16

WABCO-TVS 78.59

Amara Raja Batt 167.03

Federal-Mogul 46.10

Amtek India 76.34

Sundaram-Clayto 12.36

Banco Products 78.41

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Value chain for Manufacturing

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CSR

CORPORATE SOCIAL OBJECTIVES• Corporate Social Responsibility continues to assume an important role in the

activities of the Company.• Afforestation, Water Management, Literacy and Health continue to be the

chosen areas of work by the Company and its employees. An Eco-friendly gasifier crematorium constructed near Plant-I at Perianaickenpalayam is maintained under Pricol Rural Development Programme (PRDP).

CONSERVATION OF ENERGY• Company is not a power intensive industry, the Company continues its

efforts to reduce energy usage by adopting various methods of energy saving and conservation.

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OUTLOOK

• The vehicle industry expects the growth in automobile sector to continue, fuelled by rising disposable incomes. Global automakers are expected to continue their investment into India, growing auto manufacturing first and later auto engineering and R&D Services.

• The outlook for the auto ancillary industry appears healthy. The demand from the export markets however remains weak because of the conditions prevailing in the target markets.

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INTERNAL CONTROL SYSTEM

• The company's internal control system has been designed & implemented, taking into account of nature of business and size of operations, to provide for:

• Accurate recording of transactions with internal checks and prompt reporting.

• Adherence to applicable Accounting Standards and policies.

• Compliance with applicable statutes, policies, listing requirements, management policies and procedures

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• Effective use of resources and safeguarding of assets.

• The company, through its own Internal Audit Department, carries out periodic audits to access the internal controls at all the processes and functions. The observations arising out of audit are periodically reviewed and compliances ensured.

• The summary of the Internal audit observations is submitted to the Audit committee. The Audit Committee at their meetings regularly review the financial, operating, internal audit & compliance reports to improve performance. The heads of various monitoring / operating cells are present for the Audit Committee meetings to answer queries from the Audit Committee.

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OPPURTUNITIES,RISKS AND CHALLENGES

• Export of automobiles has also emerged as a key component of growth. India continues to be an attractive destination for automobile production.

• Unlike in Europe, the transition to the new emission norms has not been smooth. Oil companies have asked for a deferment in supply of BS III fuel and for those companies whose emission and durability of products would be affected due to the use of lower grade of fuel, it is really a very taxing time. Prices are on the upswing in the case of rubber, steel and fuel.

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• The auto component industry has been exposed to many risks of varying intensity. The hardening of interest rate, tightening money supply, excise duty hike, volatility in the price of raw materials & other inputs, currency fluctuations, OEMs demand for price reduction, stiff competition by the entry of Multinationals and their home country partnership, upgradation in emission norms and Just In Time supplies are the major risks and challenges faced by the Companies. It is forcing Companies to plan operations effectively and produce quality components at lower costs.

• The Company through continuous monitoring, timely action and control measures works towards controlling the above risks.

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FINANCIAL ANALYSIS

• During 2009-10, increase of sales to domestic vehicle manufacturers and sales of fleet management products, sintered components & railway products increased our company’s domestic sales from Rs.4,766 million to Rs.6,338 million, a growth of 33%.

• Due to the continuation of recession in the countries where we export, our export turnover decreased from Rs.1,375 million to Rs.1,086 million. Overall, the total sales increased to Rs.7,424 million from Rs.6,141 million, a growth of 21%.

• In 2009-10, due to effective cost control measures carried out by the company, the profit before interest and depreciation has increased from Rs.378 million to Rs.943 million, and Profit After Tax has gone up from a loss of Rs.300 million to a profit of Rs.255 million.

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• Due to the Indian Rupee having strengthened substantially against Euro and to certain extent against US Dollar, the export realisation will be affected. The financial crisis in Europe, Companys largest export market is also a worrisome factor.

• The long drawn labour strike in the year 2007 resulted in cancellation of product development for the new models to be released in this financial year. Therefore, the phasing of old models for which Company was supplying products and introduction of new models where the Company will not be supplying similar products, there will hardly be any growth in the domestic market.

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• Therefore, the companys overall sales for 2010-11 is expected to go up only marginally by 3%.

• But, the Company will continue its efforts to further reduce the operational costs to improve the profits.

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SALES

Sales

253.4 246.1298.4

370.4449 481.7

583.4 606.5 614

742.4

0100200300400500600700800

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

Sale

s in

Rs.

Cro

re

Sales

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PROFIT

Profit

13.63

6.95

11.14

27.5130.99

20.05

25.68

12.77

30.02

21.28

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

Profi

t in

Rs.

cro

re

Profit

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Benefits derived from R & D• New Products development and tapping • Increasing localisation of inputs to save valuable• New markets, Foreign exchange.• Meeting cost effectiveness in new products. • Registration of patents & designs.Future plan of action• To Work closely with customers to understand the requirements in terms

of features and reliability for a complete product solution.• To Nurture and Promote indigenous technology• To enhance the existing IPR base to higher levels.• To focus on new technology products.• To reduce time to market the product.• To achieve price competitiveness with desired profit margin through target

pricing.