NATIONAL INSTITUTE OF TECHNOLOGY

KURUKSHETRA(DEEMED UNIVERSITY)

AProject Report

OnComparative analysis

OfAuto-component industry

In India

Submitted to Submitted byMrs. Neenu Yogesh thakker

CONTENTS

1. Preface

2. Acknowledgement

3. Certificate

4. Project Description

Auto-component Industry in India

Big players go high-tech

Government Initiatives

FDI Scenario

Domestic Sales--How is Indian market performing

Exports

Indian Component Industry is fast emerging as an Attractive OEM/Tier 1 Supplier

Company Profile

Auto Components-Major players

Data Analysis and Interpretation

5. Conclusion

6. Bibliography

PREFACE

Master of Business Administration is a course, which combines both theory and its applications as its contents of study in the field of management. As part and parcel of this course, every aspirant has to undergo summer training in an organization. The purpose of this training is to expose the student of management sciences to real life situations existing in the organization and to provide an insight into the various functions, who can visualize things, what they have been taught in classrooms. Actually, it is the life force of management. It is in practical training that the effectiveness of management itself is realized.

This report is a continuation of that tradition. It is an attempt to present an account of practical knowledge and observations gathered during the analysis.This report includes the information about the premiere companies in auto-component industry

Yogesh ThakkerDepartment of Business administration

National Institute of Technology Kurukshetra

ACKNOWLEDGEMENT

I hereby acknowledge the courtesy and prompt response of all those who were requested to contribute their views, readily grant the necessary permission to contact them at inconvenient hours despite the pressure of work. The project report would not have been possible without unstinting support of all the executives of Clutch Auto Ltd.

I would like to express my sincere gratitude towards Mr. for giving me this opportunity to experience a whole new dimension in my study curriculum which has not only enriched my knowledge but has also helped me by giving a practical exposure to the corporate world. His invaluable and constructive criticism and continuous encouragement throughout the project helped me to get insight of the working of Clutch Auto Ltd.

I am grateful to Mr. Giriraj, Mr. B.S.Panigrahi and all the officers in the organization who were very co-operative and were there whenever I needed them.

I would like to express my sincere thanks to Mrs. Aarti Deveshwar and Mr. Vinod Kumar of NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA for guiding me through the project, without her help it would have been difficult for me to complete this project.

The training experience will go down as one of the most cherished memories in my life. The officers at Clutch Auto limited and my guide at the college have made me a better person today. I am humbled and feel too small to accept the respect showered on me.

(Yogesh Thakker)

CERTIFICATE

INTRODUCTION OF THE PROJECT

The automobile industry in the country is one of the key sectors of the economy in terms of the employment opportunities that it offers. The industry directly employs close to around 0.2 million people and indirectly employs around 10 million people. The prospects of the industry also has a bearing on the auto-component industry which is also a major sector in the Indian economy directly employing 0.25 million people.

All is not well with the automobile industry the world over currently with the slowdown that has gripped most of the major economies of the world. The gap between the manufacturing capacity volume and the assembly volume is growing by the day and has worried the manufacturers. This state of affairs has triggered a lot of cutthroat competition and consolidation in the industry. Cost reduction initiatives have come to be the in thing in the global industry today. Towards this direction, many automobile factories are being closed down.

The Indian automobile industry is a stark contrast to the global industry due to many of the characteristics, which are peculiar to India. The Indian automobile industry is very small in comparison to the global industry. Except for two wheelers and tractors segments, the Indian industry cannot boast of big volumes vis-à-vis global numbers

SCOPE OF PROJECTThe scope of project is to identify the premiere players in auto-component industry and to make a comparative analysis of their financial positions as well as future prospects.

OBJECTIVES OF PROJECT1. To do comparative analysis of the premiere players of auto-component market

RESEARCH METHODOLOGYRESEARCH METHODOLOGY

The research involves plotting of graphs on the basis of calculation made in the excel worksheets. On the basis of these calculations and charts further conclusions were drawn.

The financial data of all the companies taken up for the project have been taken from

www.yahoofinance.com

Auto-component Industry in India

The auto component industry has come of age and now forms an important component of the Indian economy. In recent years, it has grown more impressively, fetch double digit growth. More interestingly, it has captured attention as well as business from leading auto makers of the world. The industry plays a crucial role in the automobile sector. Manufacturing vehicles typically involve assembling a large number of components out-sourced from number of ancillaries or component manufacturers. Competitiveness with quality as a theme has been the watchword for the Indian industry and especially the auto component industry ever since the Indian economy was opened up to the world in the early 1990s. While economic revival, lower interest rates and better road infrastructure are driving domestic demand for automobiles and, therefore, components, increasing outsourcing by global automobile majors is creating a huge export opportunity for Indian component manufacturers.

Industry dynamicsThe Indian auto components industry started out small in the 1940s supplying components to Hindustan Motors and Premier Automobiles, two largest manufacturers of automobiles in India at that time. In the 1950s, the arrival of Telco, Bajaj, Mahindra & Mahindra led to steadily increasing production. A closed market with high import tariffs characterized the Indian auto component industry pre 1985. 1985-91 saw significant JVs in the Indian auto component segment with Japanese manufacturers. After 1991, the delicensing of the sector led to global auto manufacturers initiating assembly operations in India. This subsequently led to global Tier I players entering the Indian auto space and the recognition of the potential in the Indian auto component segment.The Automotive Component Manufactures Association (ACMA) classifies the auto ancillaryindustry into the following product segments:• Engine and engine parts: Pistons, piston rings, piston pins, gaskets, carburetors, fuel injection pumps, etc.• Drive transmission and steering parts: Transmission gears, steering gears, crown wheels and pinions, axles, wheels, etc.• Suspension and braking parts: Leaf springs, shock absorbers, brake assemblies, etc.• Electricals: Spark plugs, starter motors, generators, distributors, voltage regulators, flywheel magnetos, ignition coils, etc.• Equipment: Dashboard instruments, headlights, horns, wipers, etc.• Others: Fan belts, sheet metal parts, plastic mouldings, etc.

The major players in the auto ancillary industry can be classified between the ones catering to the two wheeler industry and the four wheeler industry. MICO, Bharat Forge, Sundaram Clayton, Sundaram Brakes, Rane Brakes, etc. mainly cater to commercial vehicles/tractors. There are many companies like Ucal Fuel, Motherson Sumi, PRICOL, Subros, etc. which supply mainly to car industry. Companies like Munjal Showa, Lakshmi Auto, Omax Auto, etc. cater to two-wheelers.

Sectoral PerformanceThe auto-ancillary was the best performing sector among the intermediate goods. Different segments of the sector such as bearing, casting, fasteners, batteries and tyres have grown in a range of 25-40%.During the June quarter, global automobile majors have announced major investment & domestic automobile companies such as General Motors (GM) and Honda in fragmented auto-ancillary sector. Global majors are in a very critical condition; they are loosing their market share because major automobile companies are being attracted by India, China, & Taiwan. During first quarter of FY07, exports of automobile components grew around 25% compared to the previous quarter on a YoY basis. And exports registered a growth at around Rs 2833 crore compared to around Rs 3530 crore in the corresponding quarter of FY06. The main reason for boost in export is that the nature of the customer base of overseas market has been undergoing major change. Indian companies are transforming into principal suppliers for the Original Equipment Manufacturers (OEMs) from the after sales market or replacement market. During that quarter, production of autocomponents increased by 15% YoY. And the result came out so far in this quarter is, Shanthi Gears, witnessed a jump in net profits for the quarter ending in September, 2006. During the quarter, the company witnessed a jump in NP at 43.45%, Sales for the quarter rose 31.90% compared with the corresponding quarter, a year ago. The company has facilities for manufacturing patterns, centrifugal castings of phosphor bronze rings, ferrous castings, aluminum castings, heat treatment, forging, fabrications and cutter manufacturing in-house which constitute the major raw materials for gearboxes.Automotive Axles reported marginal improvement in the net profits for the quarter ended June 30, 2006. During the quarter, the company reported a 2.30% rise in profits and Sales for the quarter rose 35.15% compared with the corresponding quarter, Y-o-Y.

Future Outlook

Given the significant scale up of capacities by the domestic majors, and their improving global cost effectiveness, the domestic auto ancillaries are well set to sustainable scale up their share of the global auto component pie. The players are aggressively focusing on new client acquisition, inorganic growth in developed countries and cost reduction measures on fronts like quality, delivery, design and management.Growth in the domestic market would be driven by sustained growth in supplies to OEMs as well as acceleration in the demand from replacement market. Moreover, cars, utility vehicles and CVs made in India are increasingly getting acceptance in foreign markets, thus driving the demand further. Even Indian two-wheeler majors are targeting markets abroad. Simultaneously, foreign auto majors like Ford and Hyundai are making India its manufacturing base for several models. Overall, the short to medium term outlook for the domestic auto component producers is positive. Automobile industry, which is a key driver of auto-component industry, is likely to grow at 12-17%. Along with this some other key drivers including exports, outsourcing, and replacement market are slowing down competitiveness in global markets in turn boosting the productivity of Indian autocomponents industry. Setting up a new plant by existing companies and out-sourcing by the foreign vendors will result in domestic companies benefiting, either by exporting from domestic facilities or setting up facilities in those locations. To meet the emerging opportunities and challenges, Indian vendors are diversifying across products, processes, clients and markets. Companies that have restricted themselves to

domestic business have seen modest growth and flat margins. A robust business outlook is expected to drive strong revenue growth for the auto-component industry. Steel is a major raw material in manufacturing of parts. Since mid January 2006, the domestic steel prices have been increasing. Similarly, other inputs like non-ferrous metal, fuel, and transport costs have also been increasing. However, the auto ancillaries are not able to pass on the rise in costs, due to quality and price consciousness of auto majors. Fortunately, healthy rise in volumes, players move up the value chain, increasing exports together facilitated them to cushion the rise in costs, and enabled them to maintain margins.

Hindustan Composites is planning break lining and clutch facing unit near the proposed Tata Motor plant at Singur in Hooghly district of West Bengal. The company has already started discussion with few tier 1 component manufacturer of Tata Motors in this regard The company is planning to tie up with an outfit which is likely to be entrusted with for the break assembly of small car. Tata Motors is overhauling its outsourcing policy across all categories of cars. As part of this policy, which is aimed at keeping costs under control, the company has taken a conscious decision to move away from the multiple vendor models to a single vendor model.

Bharat Forge Ltd. (BFL), signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to jointly develop a multi-product Special Economic Zone (SEZ) in Khed Taluka of Pune District. The SEZ is expected to attract investments of about Rs. 25,000 crores and generate 120,000 new employment opportunities. The project has received in-principle approval from the Board of Approval, Ministry of Commerce, Government of India. The project would be implemented through a Special Purpose Vehicle (SPV) to be jointly promoted by BFL / Kalyani Group and the Maharashtra Industrial Development Corporation (MIDC) in which the two promoters would hold upto 74% and 26% of the equity capital respectively. Land acquisition and other project related activities would commence shortly.

Indian auto component industry likely to be $ 40bn in 2015

The world's top car makers turn to India for the nuts and bolts of their vehicles. Riding this success, and capitalizing on the spiraling demand of domestic auto companies, the Indian automobile components industry has emerged as one of India's fastest growing manufacturing sectors, and a globally competitive one. A number of them source critical components from India, with engine parts making up nearly a third of all exports:

The India Advantage:

Steered here by the country's high engineering skills, established production lines, a thriving domestic automobile industry and competitive costs, global auto majors are rapidly ramping up the value of components they source from India. The industry is poised to jump from exports of Rs. 61 billion in 2005-06 to Rs. 296 billion in 2011-12. According to the Automotive Component Manufacturers Association of India, more than a third (36 per cent) of Indian auto component exports head for Europe, with North America a close second at 26 per cent.

In 2006, components worth Rs.83billion were exported by Indian companies, 75 per cent of which were bought directly by car companies. The original equipment manufacturers (OEMs) include firms like General Motors, Ford Motor Company, Cummins International, Bosch, Volkswagen, BMW, MAN (trucks) and JCB (earthmoving equipment) amongst others.

Economic Survey 2006-07 says:

The turnover of the auto component sector has grown from $ 3.1 billion to $ 10 billion between 1997-98 and 2005-06. In 2005-06, the sector's exports grew by 28 per cent to reach $ 1.8 billion. The major destinations of export for this sector are US and Europe, which belong to the category of high Accepted Quality Level (AQL).

Over 20 OEMs have set up their International Purchase Offices (IPOs) in India to the components. This number is expected to double by the year 2010. India enjoys a cost advantage with regard to castings and forgings. The manufacturing costs in India are 25 to 30 percent lower than its western counterparts. India's competitive advantage does not come from costs alone, but from its full service supply capability.

Destination India

India is on every major global automobile player’s roadmap, and it isn’t hard to see why:

India is the second largest two-wheeler market in the world Fourth largest commercial vehicle market in the world 11th largest passenger car market in the world Expected to be the seventh largest by 2016

Investments

Global auto majors and domestic giants are pulling out their purses and putting their money where the production lines are.

Auto parts maker Robert Bosch of Germany will invest $ 201.4 million in its Indian subsidiaries over two years. Bulk of the investment will be in Motor Industries Co Ltd (Mico) -- the Bosch flagship in India.

Japanese electronic major, Hitachi Ltd. is planning to start auto component manufacturing in India when it’s OEMs-Isuzu Motor and Nissan Motor--start manufacturing their cars in India.

Dubai-based auto ancillary major Parts International Company has plans to invest approximately $ 3.6 million in India over three years. This includes setting up a manufacturing facility meant to service exports to CIS and SAARC countries.

Fiat India is taking baby steps in becoming a global sourcing hub for components. Fiat has exported components worth $ 8.3 million last year to its operations in South Africa.

General Motors has decided to increase sourcing of components from Indian suppliers and intends to ship parts worth $ 1000.7 million to its global production units by 2010.

Big players go high-tech

The smaller scale of operations of most Indian auto component companies has meant that the size of global orders currently awarded to them is less than $50m. In order to rapidly acquire scale, leading Indian auto component manufacturers are making huge Investments in creating capacity as well as upgrading technology. Besides the Greenfield investments, companies are also acquiring capacities closer to global OEMs to gain ready access to a global customer base.

Capex Plans(Rs. mn) FY05 FY06 FY07 FY08 FY09E

Bharat Forge 5587 8714 2750 2650 3000

Amtek Auto 4192 10120 3500 4000 4000

Rico Auto 945 1324 1300 850 850

Omax Auto 755 520 600 1100 800

Sono Koyo 261 351 660 1300 1300

Sundaram Fasteners 1259 861 1000 900 500

MICO 1001 3637 3200 3000 2500

Appolo Tyres 1911 1558 1800 3300 1000

Balkrishna Industries 857 1183 1100 1000 400

Total of above 16768 28268 15910 18100 14350

GOVERNMENT INITATIVES

The opening up of the sector over the last decade has caught the attention of global auto majors as the only market rivaling China in terms of potential market size and growth opportunity. As the automobile industry has grown and matured, the Indian auto components industry has also grown tremendously, and is rapidly achieving global competitiveness both in terms of cost and quality. Infact, industry observers think that while Indian automobile market will grow at a measured pace, the auto components industry is poised for a take-off and is one of the handfuls of industries where India has a distinct competitive advantage.

In the 1990s, economic liberalization allowed foreign automakers such as Hyundai, Ford, Toyota and GM set up base in India. The local component manufacturers did not have the requisite size, technology or quality to meet the needs of these international carmakers. On the other hand, the high import tariffs and price sensitiveness of the Indian car buyer made it unviable for these companies to import components from their global suppliers. Therefore, the carmakers had to persuade their overseas components suppliers to set up local manufacturing base in India. For example, Delphi followed after General Motors opened its plant in the state of Gujarat in 1995 and Visteon followed Ford in 1998. As these companies developed and stabilized their Indian operations, they realized the cost advantage of manufacturing components in India – typically lower by about 30%. They began to explore the possibility of exporting back these low cost, high quality components to their global factories and thus reduce their overall costs.

FDI SCENARIO

The Government of India allows automatic approval for foreign equity investment up to 100 per cent for the manufacture of auto components. Manufacturing and imports in this sector is free from licensing and approvals. There is no local content regulation in the auto industry. The engineering export promotion council under the aegis of Ministry of Commerce and Industry, Government of India, over the years has been engaged in promoting exports of engineering goods including auto parts. Among other initiatives that have been affected in 2006-07 are:

Reduction in the duty of raw material to 5-7.5 per cent from the earlier 10 per cent.

Setting up of the National Automotive Testing and R&D Infrastructure Project (NATRIP) at a total cost of € 290.85 million for enabling the industry to usher in global standards of vehicular safety, emission and performance standards.

Finalization of the Automotive Mission Plan (AMP) 2006-2016 for making India a preferred destination for design and manufacture of automobile and automotive components.

Robust production

India’s car production capacity is in for a US$ 2 billion boost. Auto majors have announced massive investment plans which will push the country’s car production past the psychological 2 million mark by the end of fiscal 2006-07, up 70 per cent from 1.4 million units now. Even at 2 million, India, which stood at No.11 among global car producing nations, will move two steps ahead, past UK (1.6 million) and Canada (1.35 million). It will be neck and neck with Brazil’s 2-million capacity at No.8. The automobile industry witnessed a growth of 19.35 percent in April-July 2006 when compared to April-July 2005, as is evident from this year’s production trends.

Domestic Sales--How is Indian market performing?

Increased affluence, wider selection and the ready availability of car loans is driving the Indian car market through the roof. During the last six years (200-06), the production of passenger cars in India increased by more than 100 per cent. India achieved the sales of 1.11 million vehicles last year (2005). Domestic sales have been growing at a clipping pace:

Passenger car sales rose by 22.84 per cent during April-September 2006, compared to the corresponding period last year.

The cumulative growth of overall sales of passenger vehicles during April-September of 2006-07 was 20.73 percent.

Utility Vehicle (UVs) sales grew at 12.85 per cent during the same period. Overall, the two wheeler market grew by 15.49 per cent during the April-

September period of financial year 2006-07, over the same period last year. Motorcycles grew by 18.53 per cent, scooters at 0.12 percent and mopeds at

about 6.53 percent over April-September 2005.

Three wheeler sales grew at 19.90 per cent. Goods carriers grew by 26.16 per cent and passenger carriers grew at 15.78 per cent during the April-September 2006 period, over the same period last year.

Overall, the commercial vehicles segment grew at 36.96 per cent. Growth of Medium and Heavy Commercial Vehicles was 39.92 per cent. Light Commercial Vehicles also performed well with a growth of 32.86 percent.

Exports

India is fast emerging as a manufacturing base for car exports. According to the Society of Indian Automobile Manufacturers (SIAM), a total of 89,338 vehicles were exported in September 2006, a 58.07 per cent jump as compared to the same month last year. While passenger vehicle exports grew at 13.15 per cent, two-wheelers and commercial vehicle exports grew at 27.80 per cent.

Foreign players in India

Calendar 2006 has seen the entry of many high-end brands into the country. The Indian automobile market will see at least 30 new launches, spanning everything from affordable hatchbacks to mid-size models to super luxury high-end cars and SUVs.

Mercedes, BMW, Porsche, Audi, Bentley and Rolls Royce are already here. Now, the Italian marquee Lamborghini is also planning to enter the country. The Italian marquee plans to launch the Gallardo.

German luxury car maker Audi AG is preparing to drive into India a range of sporty, lifestyle cars like S8 and RS4 early next year.

The year 2007 will also mark Audi's entry into merchandising in Indian car bazaar.

General Motors launched Aveo this year. GM plans to bring in a sporty variant of the Chevy Optra to add to its existing line-up.

Following India's growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry.

The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2006-07. Annual growth was 16.0 per cent in April-December, 2006; the growth rate in 2005-06 was 15.1 per cent, the automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 2000 and 2006.

With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.

Major Manufacturers of Automobiles in India

Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Daewoo Motors India Hindustan Motors Hyundai Motor India Ltd. Telco TVS Motors Swaraj Mazda Ltd TATA motors

Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02.

EVEN GROWTH

Opposing the belief that the growth in automobile industry has catered only to the top income-stratum of society, Growth of exports of 32.8 % in the first three quarters of 2004-05, the fastest growth in volumes has come from commercial vehicles as against passenger cars.

Between 1998-99 and 2003-04, output of commercial vehicles has grown 2.8 times compared to the 2.2 times increase in passenger cars. Furthermore, two-wheeler output continues to dominate the volume statistics of the sector. In 2003-04, for every passenger car turned out by the sector, there were 7 two-wheelers produced. In the two wheeler segment, there is a greater preference for motorcycles followed by scooters, with both production and domestic sales of motorcycles increasing at faster rates than for scooters in the current and previous years. However, mopeds have registered low or negative growth. Export growth rates have been high both for motorcycles and scooters.

The road ahead

Exciting times lie ahead for the Indian automotive component industry. Besides the burgeoning demand from global auto majors, there is also the domestic car industry, which is growing at a spanking rate of over 16 per cent, driven by a rising consumer base and affordable loans

The opening up of the sector over the last decade has caught the attention of global auto majors as the only market rivaling China in terms of potential market size and growth opportunity. As the automobile industry has grown and matured, the Indian auto components industry has also grown tremendously, and is rapidly achieving global competitiveness both in terms of cost and quality. Infact, industry observers think that while Indian automobile market will grow at a measured pace, the auto components industry is poised for a take-off and is one of the handfuls of industries where India has a distinct competitive advantage.

Indian auto industry has established one of the largest export hubs for most of the global players. Several global automotive players have moved their R&D to India outsourcing research and design elements of the automotive products. R&D expenses as a percentage of net sales was 0.78 per cent in auto components in 2004-05. Also India scores over other countries like China and Thailand and has gained acceptance of global OEMs on account of its quality, design and engineering capabilities and large pool of low cost, technically skilled and English speaking engineers. Many Indian firms are working on at least $300-million worth of automotive engineering design services (AEDS) projects and expected to be a-billion industry by 2010.

Four different types of players are offering these services:

Captive Centers of global OEMs (GM, Ford, Bosch, Delphi, etc.) IT Services companies (Infosys, Wipro, TCS, Satyam, etc.) Design Houses (Dilip Chhabria Designs, Geometric Software, Infension

Technologies, Neilsoft, etc.) Subsidiary of Indian Auto Companies (Mahindra & Mahindra, Eicher, TVS,

etc.)

The nature of projects is limited largely to CAD/CAM and modeling and analysis but eventually Indian companies could design the entire concept with sketches and detailed depiction of all vehicle features. The changing scenario of the Indian auto industry in the context of facing challenges and availing of opportunities in the global markets concerted efforts are needed to create a significance place in the increased integrated value chain across the geographical reasons.

The auto industry urgently is to be expanded in regard to increase investment and local resources to match potential. Significant capital is required for capacity expansion and fuelling acquisitions. Investments should be made in both OEM and auto components businesses so as to create a low cost model capital and operations profitable at low scale. Technology and Branding are important for the Indian auto Industry.

There is a significant gap between Indian firms and leading global OEMs. One of the key imperatives for Indian auto companies would be to increase spending on R&D and Brand building to remain competitive on a global basis. This is driven by shorter product life cycles and increasing number of variants combined with the need to strengthen brands in the highly competitive overseas markets. The Indian auto industry, worth US$ 34 billion in 2006, has grown at a CAGR of 14 per cent over the last five years with total sales of vehicles reaching around 9 million vehicles in 2005-06. That number is likely to see a significant boost, given that the first half of 2006-07 has already witnessed a staggering growth rate of 17.12 per cent. Domestic car sales for the April-September 2006 period stood at an impressive 4.86 million vehicles, including cars, two-wheelers and commercial vehicles.

According to industry experts, if this trend continues, sales could touch 10 million by March 2007, clocking an annual growth rate of 20 per cent. In addition, the Government’s announcement to cut excise duty on small cars will soon see auto India emerging as the world's largest manufacturing hub for small or compact cars.

Indian Component Industry is fast emerging as an Attractive OEM/Tier 1 Supplier

Acquisitions & JV Abroad

Indian companies' overseas acquisitions have been driven by their desire to be among the largest and least-cost producers, their quest for technology and a search for new markets. In July 2006, in order to establish a presence in mainland Europe, Amtek Auto, a manufacturer of automotive components such as engines, transmission and suspension parts, assemblies and systems, bought 70 per cent stake in Zelter GmbH,

one of the three largest manufacturers of turbochargers housing in the world, for an enterprise value of euro 28 million. Following the acquisition of South Korea’s Daewoo Commercial Vehicle Co. in March 2004 by Tata Motors for $102 million and Bharat Forge’s acquisition of German firm Carl Dan Pedinghaus GmbH for euro 29 million, Mahindra & Mahindra, through its subsidiary agreed to acquire 67.9 per cent stake in Jeco Holding AG, one of the top five forging companies in Germany, for euro 140 million and subsidiary of Scholz AG. Jeco Holding AG, which focuses on the truck, bus and trailer market, makes gearboxes, engine and axle pans, hubs,

Global AcquisitionsAcquired By Target Value (Rs. cr)Bharat Forge Imatra Kilsta AB, Sweden 261Bharat Forge federal forge, US 41Bharat Forge CDP Aluminiumtechnik 35.4Bharat Forge Carl Dan Peddighous 157.5

Sundaram Fasteners76% JV with Bleisthal Produktions GmbH, Germany 20

Sundaram Fasteners Precision Forging Unit of Fana Spicer, UK 11.9Sundaram Fasteners Unit of Textron Deutshland Beteilingungs NAAmtek Group Zelter, Germany 157.5Amtek Group Sigma Cast, UK NAAmtek Group GWK, UK 42Tata Auto Component Wundsch Weidirge, Germany NAUCAL Fuel Systems Amtec Precision Products Inc, USA 126Sona Koyo Steering Systems 21% in Fuji Autotech France 27.7

Clutch Auto (CAL) was incorporated in May 1971 in New Delhi, promoted by Vijay Krishna Mehta, a technocrat entrepreneur. The company manufactures clutches, components and spares for the automotive sector. The Company is working regular on modernization and expansion programs and to improve the productivity and quality of its products. Its clientele includes TELCO, Ashok Leyland, Maruti Udyog, DCM Toyota, Escorts Tractors, BEML and state transport undertakings. The company is concentrating on increasing its capacity for the existing range of vehicles. Products are upgraded with imported equipment like induction hardening, press tempering and semi-automatic reveling machines. During the year 2002-03 the Company got patent for EZ N LITE for heavy commercial vehicles in US and this will give an edge over competitors and is expected to result in substantial business increase in the years to come.

Clutch Auto Ltd (CAL) is the largest supplier of clutches to the commercial vehicle and tractor segment in India. It also caters to the passenger vehicle and replacement demand and its clientele includes Tata Motors, Ashok Leyland, Maruti Udyog, TAFE, Toyota, BEML, Escort Tractors and State Transport Undertakings, among others.

Clutch is a technology intensive business dominated by 6 players in the world, all operating either as joint ventures or as technology partners or license arrangements. CAL is the only standalone clutch company in the world, which is testimony to its technology capability. CAL has been associated with production of clutch plates and clutch assemblies and other related components

Products offered Diaphragm organic clutch assembly Cover organic clutch assembly Cover ceramic clutch assembly

Range is 160-352 mm

CAL is present in OEM as well as Replacement market, in addition to export market.

CAL has at present following OEM’s purchasers MARUTI UDYOG LIMITED TATA MOTORS ASHOK LEYLAND MAHINDRA & MAHINDRA PUNJAB TRACTORS LIMITED INTERNATIONAL TRACTORS LIMITED EICHER TRACTORS

CAL is also present in replacement market and is catering to the following company’s vehicle

Maruti800, alto, baleno, esteem, gypsy, omni, wagon-R and Zen (old model) TATA indica, indigo, spacio, sumo victa, commercial vehciles Ashok Leyland, commercial vehicles

M&M tractors, ITL-Sonalika Eicher-tractors, Hyundai-santro Volvo buses, Toyota- qualis Chevrolet- tavera Military tanksThe company has ventured into the US truck market through the aftermarket route making it the only offshore company to be able to do so. It plans to be a niche player in the low volume, high value added heavy-duty clutch segment for class 7 and 8 trucks. This is because, the replacement demand for trucks in US, with a population of nearly 4.5-5mn units, is nearly as high (250,000 units pa) as the demand for new trucks. CAL invested in technology, research and filed for patents and trademarks for a number of products that it developed. Currently it has 11 patents in USA market, either approved or pending; similarly it has 31 patents in domestic market

Patents Approved Pending Under FilingOverseas

USA 1 5 5Mexico 1Australia 1

1 7 5

Domestic 15 7 9

Trade MarksUSA 4 9 2India 11 2 4

Today, the company is the only independent component company from India with an independent patents and trademarks portfolio.

It has built many innovative products like the ‘Cool Clutch’, ‘Whisper’ and ‘EZ N Lite’ offering interchangeability unit-to-unit, component-to component with the same serviceability norms and tools. While the domestic market will ensure steady revenues to the company; high growth is expected to come from the export initiatives taken by the company. Presently, 25% of its revenues are on account of exports.

This proportion is expected to rise and contribute to around 50% of revenues in the next 3-4 years. The Company increased its capacity for clutch discs and clutch cover assemblies by 122% and 200% respectively in FY05 to meet the growing demand for its products. The company has set up a strong distribution network along with product liability cover for overseas market. It already received orders from Fleet Pride, a leading heavy-duty class parts distributor in the US.

CAL is the number one company in production of clutch plates and clutch assemblies

Only company to possess an indigenous know-how of clutch plate production

Obtained approval of TATA motors for the entire range of current and future products

Exports to 40 countries 56.41% YOY growth in sales revenue 81% YOY growth in domestic market 71% YOY growth in bottom line

Three year expansion plans:

Company has following expansion plan

To triple its production capacity to 4 million units by FY10 from current capacity of 1.4 million units

Expansion cost to be Rs. 30 crore which will be funded through internal accruals

Operating margins @ 16% for April December06

To triple revenues to Rs. 650 crores by the end of FY09-10

Export contribution to rise 50% from current one third at present

Auto Components-Major players

Auto Components MarketGearing upStrong growth in the domestic automobile industry and a stable 10-15% future growth outlook over the next two years would drive demand for auto components both in the domestic OEM and the aftermarket. Exports too are in a scale up mode for leading players like Bharat Forge, Amtek Auto and MICO. We believe, a slowdown in key global markets and the fragile financial health of global OEMs as also Tier-I vendors would lead to higher outsourcing by these players to low cost auto component players in the long term. We expect 15% revenue CAGR and 22% earnings CAGR for our auto component universe over FY07-09 led by strong revenue and earnings growth for Bharat Forge, MICO and Balkrishna Industries over the same period.

Domestic growth on a firm footing, exports looking up: It is expected that domestic revenue for auto component companies

will remain strong given a stable 10-15% volume growth outlook for various auto segments. Exports for leading players, too appear to be scaling up and a slowdown in key global markets and fragile financial health of global OEMs and Tier-I vendors will only accelerate the pace of outsourcing to leading auto component players in Low Cost Countries like India. Amtek Auto has successfully implemented the strategy of acquiring customer base overseas and outsources the labor intensive operations to its low cost Indian facilities.

Building capacity to acquire scale: Lack of scale has prevented Indian auto component players from

winning outsourcing deals exceeding US $50m. Companies are therefore investing aggressively in capacity build-up and technology upgradation. Major companies are expected to invest Rs32bn over FY08-09 increasing new capacity.Expect strong earnings momentum for leading players:

The expected revenue CAGR is 15% and earnings CAGR is 22% for auto component market over FY07-09 led by strong growth for Bharat Forge, MICO and Balkrishna Industries

The major players in Auto-component market are Amtek Auto Apollo Tyres Balkrishna Industries Bharat Forge MICO Omax Autos Rico Auto Industries Sona Koyo Sundram Fasteners Clutch Auto

Strong growth outlook for domestic auto OEMs to boost demandWhile auto component companies retain focus on enhancing their overseas

revenues, their domestic businesses too appear on a firm footing with buoyant growth outlook for the domestic auto OEMs. Favorable demographics (rising income levels and an increasingly younger population), along with very low vehicle penetration indicate strong long-term demand prospects for cars and two-wheelers. Strong growth in industrial production, emergence of new growth drivers like organized retail, and the ongoing pace of investments and infrastructure development in the country would drive demand for commercial vehicles. While factors like higher interest rates and a higher base could check growth rates in the near term, the industry’s prospects nevertheless remain strong.

Amtek Auto

Amtek Auto (Amtek) has the twin advantage of presence in both forgings and castings, two key segments in the global outsourcing space. Given Indian companies’ edge over other low cost regions owing to their superior engineering & designing skills and given Amtek’s aggressive capacity expansion plans, expect sustained growth momentum in its revenues and earnings in the coming period. At Current Market Price (CMP), the stock trades at 11.4x FY09E consolidated earnings and 5.7x EV/EBIDTA.

Presence in two key areas of forgings and castings: Amtek’s product portfolio includes a mix of both forgings and castings products (82:18). Indian companies have an edge over other low cost manufacturers in the forgings and castings space owing to their superior engineering and design skills. Further, these processes are highly labour intensive and are being increasingly outsourced by global majors to low cost countries.

Exploiting synergies from overseas acquisitions: Amtek has successfully implemented the model of acquiring front-end capacities in proximity to global OEMs in key markets like USA and Europe, and then outsourcing the labour intensive operations to India to reduce the overall cost of production. The company expects to increase the share of exports to overseas group companies to 65% in FY07 against 60% in FY06.

Expect strong 18% earnings growth over FY06-09: Amtek continues to pursue its growth strategy of a mix of organic and inorganic growth. The expected consolidated revenue CAGR is 24% for Amtek over FY06-09, leading to an 18% consolidated earnings CAGR over the same period.

Apollo TyresApollo Tyres (Apollo), with its leadership position in the truck and bus (T&B) replacement tyre market, is likely to be a key beneficiary of the expected surge in this segment. The Dunlop SA acquisition offers significant synergies to be reaped in terms of access to T&B radial tyre technology, a wider product portfolio and easy entry in new geographies. Apollo is betting big on radialisation picking up pace in the T&B segment and plans to set up a Greenfield plant targeted at T&B radials. Though the company’s profitability has improved significantly over the last two quarters on the back of softening rubber prices, it nevertheless remains vulnerable to rubber price fluctuations.

Well poised to benefit from higher replacement demand: Replacement demand for tyres in the CV space is likely to witness a surge

owing to a strong 24% 5-year CAGR in domestic MHCV sales. Further, replacement demand for tyres is also likely to jump as growth in new truck sales moderates over the next two years. Apollo, the leader in this space with a share of 35%, is likely to be a key beneficiary of the expected surge in demand in this segment.

Dunlop SA acquisition offers significant synergies to be reaped: The Dunlop SA acquisition provides Apollo with ready access to radial tyre

technology, especially T&B radial technology. This assumes significance in the wake of Apollo’s proposed T&B radial tyre greenfield facility. The acquisition also provides it with benefits of an extended product line and access to key European markets where the company has negligible presence.

Balkrishna IndustriesBalkrishna Industries (BIL) is the largest exporter of tyres from India and among the top 10 manufacturers of off-highway tyres globally. BIL’s strong product development ability and competitive product pricing (arising from low cost advantage)

has yielded strong revenue growth (28.8% CAGR for FY02- 06), superior margins (19.2% for 9MFY07) and high return ratios (RoE of 33.2% for FY06). We expect BIL to deliver revenue and earnings CAGR of 23% and 31% respectively over FY07-09. Given strong fundamentals and compelling valuations (4.0x EV/EBIDTA and PER of 7.0x FY09 estimates),

BIL – the global OTR player: BIL is among the top 10 manufacturers of OTR tyres globally. The low volume and diverse product varieties as also low capacity utilization levels typical of the segment have triggered exit of large players, much to the advantage of BIL. The company’s competitive strength lies in offering a wide range of tyres at competitive prices lower on the back of its strong product development ability and lower labour costs in India.

Superior margins and return ratios: BIL’s margins are expected to expand primarily owing to a recent softening in rubber prices and a planned scale up in the high margin tractor radial tyre segment. BIL has also hiked the prices of its products by 2-3% wef April 2007. Also, BIL plans to spin off the paperboard and textile processing divisions into fully owned subsidiaries so as to focus on each business and improve return ratios in the core tyre business.

Reiterate Outperformer: BIL has a strong product line up that gives it a jumpstart vis-à-vis new entrants in the OTR tyre segment. Further, a favorable demand-supply scenario in key global markets

Bharat ForgeBharat Forge (BFL) has emerged the leader in the Indian auto component space with an extensive global footprint. Besides the revenue scale up expected from enhanced capacities, BFL is likely to benefit from enhanced focus on new and more specialized segments. In addition to a diversified revenue mix, these efforts would also lead to margin expansion for BFL. We expect 15% revenue CAGR and 29% earnings CAGR for the consolidated entity over FY07-09.

Capacity utilization to improve significantly: BFL currently is in the ramp up phase of its enhanced capacity and a sharp

jump in utilization levels over the next two quarters is expected. Besides increased tonnage, product mix too would improve with a higher proportion of machined components.

Focus on diversifying revenue sources: BFL has significantly enhanced its focus on heavy-duty forged components

used in non-automotive industries like railways, construction equipment, oil & gas and others. These are high value added, high margin components with tremendous growth potential owing to increasing investments in these sectors. BFL expects the share of non-automotive business to increase to ~25% in 3-4 years from 17% currently.

Expect strong growth momentum: We expect a CAGR of 15% in BFL’s consolidated revenues over FY07-09

aided by a 21% CAGR in standalone revenues. Higher revenue contribution from the standalone entity (vis-à-vis FY07 levels) is likely to lead to margin expansion for BFL going forward.

MICOMICO is ideally positioned to benefit from the renewed focus of leading Indian OEMs on diesel cars based on the Common Rail (CR) platform. MICO is also gaining prominence as Bosch’s global R&D centre and outsourcing hub for many components. Expected 18% revenue CAGR and 29% earnings CAGR for MICO over CY06-08 led by a surge in both domestic and export revenues. Also, Bosch’s has made an open offer for an additional 20% stake in MICO (at Rs 4,000 per share) to facilitate further transfer of critical technology and processes

Leveraging on Bosch’s leadership in CRDI systems: CRDI-based diesel systems for passenger vehicles are gaining

popularity in India. We believe MICO, with Robert Bosch’s global leadership in CRDI systems, is well placed to capitalize on this opportunity. MICO currently supplies CRDI systems to leading OEMs like (Maruti Udyog and M&M) and is likely to cater to Tata Motors’ CRDI platforms based on Fiat’s diesel technology (globally, Fiat uses Bosch’s CRDI systems).

Gaining prominence in Bosch’s global plans: MICO is emerging as a global R&D and competence centre for Bosch

Group worldwide as also a manufacturing hub for many components. Already, a number of production lines for components like injectors, nozzles, single cylinder pumps, regulators, etc have been transferred from Bosch’s overseas locations to MICO. Thus, besides the growth potential in the domestic market, MICO stands to benefit from Bosch’s global plans. Strong growth prospects:

MICO’s growth prospects appear promising in the domestic market in view of increasing focus of Indian OEMs on CR systems-based diesel cars.

Omax AutoOmax Auto (Omax) is working on reducing its exposure to Hero Honda, which accounts for ~62% of its revenues. Commencing December 2007, Omax plans to undertake chassis manufacturing for Tata Motors’ MHCVs. The project, at full potential, would generate annual revenues of Rs2.4bn besides higher margins vis-à-vis Omax’s current margins. Omax has lowered its operating cost base in the last few quarters and going forward, it expects to derive cost benefits on steel purchases from Omax Steel. Omax also stands to benefit from higher capacity utilization of its two new plants.

Diversifying the revenue base: Omax is setting up a new chassis manufacturing unit for Tata

Motors at the latter’s Lucknow plant. The first phase of the project, likely to go on stream by December 2007, offers an annual revenue potential of Rs1.2bn (Rs2.4bn on completion by FY10). Omax’s supplies to non-Hero Honda clients like TVS, Sundaram Clayton and Mitsubishi are expected to scale up, which along with higher exports from the Binola plant, would diversify the revenue base.

Cost reduction measures paying off: Omax has reduced its operating costs by pruning the excess

temporary labour and switching over to more economical power sources. these measures are expected to have yielded net savings of 70bp in FY07. Further, Omax expects to save 5% on its steel procurement from the newly set up steel plant Omax Steel (one-third of the production to be sourced by Omax).

Expect strong growth momentum: Omax’s diversification strategy is likely to bring stability in revenues as well as margins owing to reduced dependence on a single client – Hero Honda (~62% of revenues in FY07).

RICO Auto

Rico Auto (Rico), deriving ~60% of revenues from Hero Honda, would likely be impacted by a slowdown in the domestic two-wheeler industry due to a high inventory build up. FCC Rico (Rico’s 50:50 JV) would, however, benefit from higher off take from HMSI (~40% of FCC Rico’s revenues) as volumes surge (up 30% yoy in April 2007) post the launch of Shine and the new Honda Unicorn. While we expect Rico to face margin pressure from Hero Honda, higher contribution from FCC Rico (high-margin business) could offer some respite.

Likely slowdown in off-take from two-wheeler players: Rico’s domestic business would be impacted due to sluggish outlook

for the two-wheeler industry, particularly for Hero Honda (60% of Rico’s revenues). However, FCC Rico (Rico’s 50:50 JV) is likely to witness a revival in offtake from HMSI (~40% of FCC Rico’s revenues) after the launch of Shine and the new Honda Unicorn.

Passenger car components foray – a new revenue stream: Rico, by way of a licensing and technological assistance agreement

with Teksid Aluminium of Italy, plans to foray into Aluminium Engine Blocks and Engine Heads business for passenger cars. Rico would supply engine blocks and cylinder heads for Tata Motors’ upcoming small car project. This project opens up a new growth vista for Rico besides lowering its dependence on the two-wheeler component business.

Expect 15% earnings CAGR over FY07-09: Expected 13% CAGR in Rico’s consolidated revenues and 15% CAGR in consolidated earnings over FY07-09. We expect some margin cushion for the company due to increased contribution from FCC Rico. Stock trades at PER of 10.9x and EV/EBIDTA of 4.8x FY09 estimates.

Sona KoyoSona Koyo has witnessed significant value growth with the launch of C-EPS systems and higher share of power steering systems in sales mix. Sona Koyo is also developing steering columns for CVs to scale up its presence in the segment. The company is striving to cut its dependence on Koyo in the export markets. It also plans to increase localization level of power steering systems to achieve margin expansion. Expect strong 29% revenue CAGR and 22% earnings CAGR for Sona Koyo over FY07-09.

Improved product offerings leading to value growth:

Inclusion of C-EPS systems in the product range has strengthened Sona Koyo’s portfolio besides leading to significant value growth. With this, the share of power steerings in total revenues has jumped significantly (55% in FY07 from 28% in FY06). Sona Koyo is also working on developing highly specialized steering columns for HCVs.

Expect margin recovery on import substitution: The shift in Sona Koyo’s product mix towards power steerings has adversely impacted its margins due to high import content. However, Sona Koyo plans to localize 70% of C-EPS components, which should lead to margin expansion.

Excellent business prospects, attractive valuations: Led by higher value growth from supply of C-EPS systems, expect

21% revenue CAGR and 23% earnings CAGR for Sona Koyo over FY07-09 (after factoring in equity dilution).

Sundram FastenersSundram Fasteners’ (SFL) diversification strategy is paying off. Exports scale up and entry into new product segments (pump assemblies and engine components) has generated incremental revenues for the company. SFL posted impressive 27% consolidated revenue CAGR over FY04-06 despite pricing pressure in key markets.

Realizations capped while input costs rise: SFL faces pricing pressure in the domestic as well as export

markets. While realizations in key product categories like high tensile fasteners and coated metal parts have remained flat, cost of inputs has escalated at a CAGR of 13% over the last five years. Consequently, SFL’s revenue growth has been primarily volume driven.

Export volume growth remains strong: SFL has recorded 41% CAGR in exports over FY02-06. Exports would

scale up further as SFL commences regular production of certain pipeline products. SFL plans to set up a 100% EOU near Chennai by FY08. Exports from the JV Sundaram Bleistahl (74% equity with SFL) would also increase gradually. We expect 24% CAGR in exports for SFL over FY06-09 with exports accounting for 37% of standalone revenues (30% in FY06).

Expect 31% earnings CAGR over FY06-09 : Expected 22% revenue CAGR for SFL over FY06-09, aided by

contribution from new product lines. Despite largely flat operating margins, earnings would grow at a faster clip (31% CAGR over our forecast period), primarily due to operating leverage. At CMP, stock trades at 10.6x FY09 consolidated earnings and 7.4x EV/EBIDTA.

Clutch autoCompany is India's largest clutch manufacturer & Exporter today. Company has TS 16949 accredited by TUV, ISO 9002, QS 9000 and QS 9000: 1998 certifications. Company has 3 decades of undisputed Leadership history. Company supplies OE to Maruti, Mahindra, Tata- Mercedes, Ashok Leyland-IVECO, PTL, Escorts, New Holland, Eicher, TAFE-Messey Ferguson, Sonalika-International Tractors, JCBL, Bajaj Auto, greaves & BEML. Company is India's largest exporter of clutches, exports to 40 countries, 85% to Americas. Company also has Largest after market distribution network in India. It is Major supplier to Indian Defence Establishments. It also provides State-of-the-art testing facility for Clutches. Company has set up R & D center recognized by Govt. of India. Clutch Auto Ltd (CAL) is the largest supplier of clutches to the commercial vehicle and tractor segment in India. It also caters to the passenger vehicle and replacement demand and its clientele includes Tata Motors, Ashok Leyland, Maruti Udyog, TAFE, Toyota, BEML, Escort Tractors and State Transport Undertakings, among others.

Technology intensive business:Clutch is a technology intensive business dominated by 6 players in the world, all operating either as joint ventures or as technology partners or license arrangements. CAL is the only standalone clutch company in the world, which is testimony to its technology capability.

The company has ventured into the US truck market through the aftermarket route making it the only offshore company to be able to do so. It plans to be a niche player in the low volume, high value added heavy-duty clutch segment for class 7 and 8 trucks. This is because, the replacement demand for trucks in US, with a population of nearly 4.5-5mn units, is nearly as high (250,000 units pa) as the demand for new trucks.

CAL invested in technology, research and filed for patents and trademarks for a number of products that it developed. Today, the company is the only independent component company from India with an independent patents and trademarks portfolio. It has built many innovative products like the ‘Cool Clutch’, ‘Whisper’ and ‘EZ N Lite’ offering interchangeability unit-to-unit, component-to component with the same serviceability norms and tools.

Strong Domestic and Export market:While the domestic market will ensure steady revenues to the company, we expect high growth to come in from the export initiatives taken by the company. Presently, 25% of its revenues are on account of exports. We expect this proportion to rise and contribute to around 50% of revenues in the next 3-4 years.The company increased its capacity for clutch discs and clutch cover assemblies by 122% and 200% respectively in FY05 to meet the growing demand for its products. The company has set up a strong distribution network along with product liability cover for overseas market. It already received orders from Fleet Pride, a leading heavy-duty class parts distributor in the US. Expect the company to witness a CAGR of 53.3% in sales and 83.6% in profits between FY05 and FY08.

LIMITATIONSLIMITATIONS 1. The projections made in the study are subject to change as, Industry is exposed

to market risk from changes in interest rates, foreign exchange rates, commodity prices and strong competitive pressures

2. The operations of the auto component industry are directly dependent on the Indian automotive industry, which is cyclical in nature, this poses a serious threat to the small companies

SUGGESTIONSSUGGESTIONS

1. Potential for synergies between companies2. Avoid cyclical nature of economy through scale of operations3. Enter in the export markets as Indian car and other vehicles are gaining acceptance

worldwide

Conclusion

All the companies which have been analyzed in the project are leaders in their respective sectors. These companies have outperformed the respective benchmarks and are giving healthy returns over a period of time, however given the vagaries of the cyclical nature of parent industry and present scenario in European markets, the auto-component sector is well poised to grow in future.

Annexure

Bibliography www.investopedia.com www.stockcharts.com www.yahoofinance.com www.google.com www.marketscreen.com www.finpipe.com www.wikipedia.com