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SUMMER TRAINING PROJECT

PRESENTED BY:

POOJA KHULLAR

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The Indian auto component industry is one of India's sunrise industries with tremendous growth prospects.

The industry has emerged as one of the key auto components centres in Asia.

As per a report by the Automotive Component Manufacturers Association of India (ACMA), the turnover of the auto component industry is being estimated at around US$ 19.2 billion in 2010-11.

Indian Auto Industry

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The industry's turnover is likely to touch US$ 40 billion by 2015-16.

The potential compounded annual growth rate (CAGR) of the auto component industry is estimated to be 11 per cent in the period 2008-15.

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Segment wise division

electrical parts9%

equipments10%

suspension & brak-ing parts

12%body & chassis

12%drive transmission & steering parts

19%

engine parts31%

others7%

Product Range

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Domestic market projected to grow at around 8-10% p.a. in the next 10years.

Exports projected to grow at over 30% p.a.

Opportunity to address the global Auto Components market while leveraging India’s large and growing domestic market.

Opportunity to set up R&D centres in India

Opportunities

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1996-97 1997-98 1998-99 1999-2000

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09*

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000 3

,278

3,0

08

3,2

49

3,8

94

3,9

65

4,4

70

5,4

30

6,7

30

8,7

00

12,

000

15,

000

18,

000

19,

100

AUTO COMPONENT INDUSTRY PRODUCTION(IN US $ MLN.)

Auto components industry production

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2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09* -

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000

2,3

00

2,6

45

3,1

00

3,7

50

4,4

00

5,4

00 7

,200

7,7

00

AUTO COMPONENT INDUSTRY INVESTMENT(IN US $ MLN.)

FDI

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More than a fourth (40 per cent) of Indian auto component exports head for Europe, with North America featuring a close second at 23 per cent.

Almost 67% of the companies in the auto component industry are exporting their products; 7% of the companies are totally export oriented.

Around 21% of the companies export more than 50% of their produce.

The major export destinations are Americas and EU, with over 60% of the companies exporting to these countries.

Export

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Export Destinations

Europe40%

N.America23%

S.America4%

Africa8%

Asia24%

Austriala1%

Export Destinations

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Export & Import of Auto Components

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-2010

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$1.20 $1.70

$2.50 $2.70

$3.50

$6.80

$5.90

$1.40

$1.90

$2.50

$3.60

$5.20

$3.80 $3.20

Export &Import

exportimport

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Largest Three Wheeler Market in the World.

Second largest Two Wheeler Market in the World.

Fourth largest Passenger Vehicle Market in Asia.

Fourth largest Tractor Market in the World.

Fifth largest Commercial Vehicle Market in the World

India’s Position in World Production

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Some major Acquisitions

Indian Company Acquired Country Acquisition value

Tata Technologies Incat International UK US$ 95 million

Bharat Forge Imatra Kilsta AB Sweden US$ 56 million

Amtek Auto GWK UK US$ 37 million

Amtek Auto Zelter Germany US$ 36 million

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The reduction in the Customs Duty on Steel and Aluminium Scrap from 5% to 0%.

Reduction of Excise Duty on Small Cars, Two/Three Wheelers, Buses.

Hybrid and Electric Vehicles which will also benefit the auto components and ancillary units as the demand from the replacement market would increase.

Reduction in Central Sales Tax from 3% to 2%.

125% Weighted Income Tax Deduction on expenses incurred on outsourced R&D which helps to promote automotive R&D.

Incentives- Duty Regime

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The future of auto in India 2016: (million units)

Segments

DomesticSales

Exports Total GlobalPosition

CurrentGlobalPosition

PassengerVehicles

3.00 1.10 4.10 7 7

CommercialVehicles

0.70 0.08 0.78 4 8

Three Wheelers

0.97 0.50 1.47 1 1

Two Wheelers

32.0 3.00 35.002

2

Tractors .65 .05 .70 1 2

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1. Infrastructure Deficit

2. Talent Crunch

3. Scaling-Up the industry

4. Access to World-class Technology and Quality Practices

5. Remaining cost competitive

Challenges India is committed to address

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The journey of excellence started long back in 1938 in pre interdependence days when a young man having a great vision translated his dream into reality steered by sheer hard work and determination.

The entrepreneurship of founder, Baba Gurumukh Singh Ji, began with manufacturing of Bicycle Components, which afterwards got diversified into manufacturing of automotive components for various motor vehicles.

About G.S. Auto International

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He formed a small team of 4 dedicated people to start marketing activity outside Punjab across India.

Most of the respect GS has attained comes from their long-term commitment to quality. Since 25years, they are one of a few selected manufacturers to develop in-house quality program.

GS is proud to say, in 1997, they elevated their quality commitment to meet ISO 9002 standard and today, GS is ISO/TS 16949 certified company.

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1938: Start business activity

1973: Got converted into private limited co. Gurmukh Singh & sons Pvt. Ltd. On 29th June, 1973

1985: Renamed as G.S. Auto International Ltd. On 5th Aug, 1985

Important Landmarks

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1990: Ryait Exports was established to cater to Export Market

1997: ISO 9002 Certification in Mar, 1997 by BVQI, U.K.

1999: QS 9000 Certification in Dec, 1999 by BVQI, U.K.

2003: Re-Certified QS 9000 in June, 2003 by BVQI, U.K.

2005: ISO/TS 16949 Certification in April 2005 by BVQI, U.K.

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2006: Commissioning of Transfer Line (14 station with Twin

Robotic Arms) to Manufacture Spring Pins (First of its kind in Asia-Pacific)

Formation of G.S. Automotives (P) Ltd. to manufacture Casted components

International Business Tie-up with V. Orlandi of Italy to introduce their Automotive and waste management products in Indian Market

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Manufacturing Facility in Lucknow

Manufacturing Facility in South India

Future Plans

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Sense of urgency

Better Relationships and better Quality of products & Services.

Continuous Improvement for excellence and consistency.

Principles of Business

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Customer satisfaction through best quality products and in house research developments;

Be a world class quality preferred supplier to OEM’s of the world, through best quality, innovation and cost competitive products.

Grab a sizeable market share for replacement market, through better dealer network and by the supply of best quality Components;

VISION

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Understanding and serving the needs of the customer.

Providing distinctively superior value to the global market.

Creating a conductive work environment for its employees.

Serving the customers with technological advanced products.

Delivering the best value to the customer

Philosophy

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Workmen trainees who have successfully completed their training with G.S. are absorbed on company rolls.

To attract and retain talent, Graduate engineer trainees recruited from engineering colleges and also from campuses, which have completed their training, have been absorbed as engineers and have also tied up with the colleges from where entry level employees are recruited.

Employee satisfaction is carried out and based on the feedback received, corrective actions have been initiated which ultimately effect the morale booster of the employees.

Human Resources

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Communication meeting is being organized every month to appraise all the employees on the major development on various fronts such as market, supply chain as well as feedback cum suggestions etc. and also for any new suggestions as well as new initiatives.

Leadership development programme planned for office bearers at each and every level of the organization and for Executive committee members.

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Company has maintained its excellent industrial relations records of not loosing even a single day due to industrial action since its inception, which further shows the relation of the company with its workmen.

Industrial Relationships

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On April 1st, of every year, Annual day is being celebrated and the employees and their family members are attending the function. This is an occasion of family get together. Various culture and religious activities were conducted for employees and their family members.

Employee Welfare

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All the employees including contract workmen undergo pre employment safety training including the onsite emergency preparedness.

Safety handbook are also given i.e. on the safety oath, emergency preparedness, instruction to fight against fire, emergency phone numbers.

Reported near miss safety incidents are being investigated and immediate corrective and preventive actions are being initiated.

Work permit system is followed strictly for hazardous work in nature, both for internal and sub contract works.

Safety

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ISO: TS 16949 Certification BVQI, UK (April, 2005)

QS 9000: Accredited in Dec, 99 by BVQI, U.K. Re-Certified in June, 2003

ISO 9002: Accredited In March, 97 by BVQI, U.K.

QUALITY CERTIFICATION

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In-house facilities for design using latest equipment, computer-aided designing based on customer requirement result in immaculate quality of components produced.

Dies, Jigs, Fixtures and special purpose machine tools are developed in-house which lead to cost effectiveness solutions and better product quality.

Design & Development

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Cold Forging Facility Hot Forging Facility Bar Drawing Facility Heat Treatment Facility

◦ Carburizing◦ Hardening◦ Tampering◦ Annealing

Induction Hardening Machine Facility

◦ CNC Machining and Turning Centres◦ SPM’s◦ Multi-Station Robotized Transfer Lines

 

Manufacturing Facilities

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Surface Treatment◦ Phosphating◦ Auto Black◦ Zinc Electro-Plating◦ Painting, Powder Coating

Tool Room Ferrous and Non Ferrous Foundry Testing Facilities

◦ Chemical◦ Physical◦ Micro Structural Analysis

Metallurgical Laboratory CAD/Uni Graphics & other Designing Software

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Machined Parts◦ King Pin Set◦ Spring Pins◦ Shackle Bolts◦ Check Nuts◦ Axle Studs◦ U-Bolts◦ Centre Bolts◦ Miscellaneous Bolts and Genuine Nuts

Product Range

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Forged Parts:◦ Wheel Bolts◦ Spindle Damper◦ Shock Absorber Pin◦ High Nuts◦ Castle Nuts◦ Hex Nuts◦ Flange Nuts◦ Washer Type Nuts

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Non Ferrous Cast Components:◦ Customized Aluminium Bronze Parts of Different

Sizes (Bushes)

Ductile Iron Cat Components:◦ Spring Hanger Shackle/Bracket◦ Engine Mounting◦ Base Plates◦ Threaded Rings◦ Compressor Mounting Bracket◦ Casting in Weight Range 1-20 Kgs.

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G.S. Automotive (P) Ltd.

G.S. Auto Comp (P) Ltd.

G.S. Consumer goods (P) Ltd.

Group Companies

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G.S. Auto has strong presence in

OEM (Original Equipment Manufacturer)

Replacement Market

Export Market

Customer Base

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Education Children, the future of our Nation, have the right to receive

attention and proper nurturing. The human approach of G.S. is manifested in the activities of education and social concerns.

Social Concerns

Institutes Presently, following institutes are being run by Education Trust for their smooth functioning

• Guru Nanak Public School• Ramgarhia Girls College• Ramgarhia Middle School• Ramgarhia Senior Secondary School

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Automotive Components Manufacturers Association Of India (ACMA)

Society of Automotive Engineers, USA Confederation Of Indian Industry (CII) Engineering Export Promotion Council Auto Parts Manufactures Association, Ludhiana

(APMA) Institute of Professional Innovators¸ Detroit

Memberships

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SWOT Analysis

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Strengths Weaknesses

Good Quality Products and good

product range

OEM Support

Prices are high as compared to other

manufacturers

Cannot Target the End users.

Opportunities Threats

Government investments

Trailer Market is Growing Rapidly

New Entrants at Local and Regional

Levels

Increasing Prices of Steel

Foreign Competition

 

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TitleActual Realization Of an Export Order

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To study the export procedure of auto part industry.

To study how export marketing is done.

To study the documents required for processing an export order.

Objectives

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Exports refer to sale of goods to a foreign country.

Exports can be of goods which can be moved physically from one country to another or can be of service rendered.

Two classes of Exports: Physical Export Deemed Export

Introduction to Exports

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Exchange of Technical Know –How. Development of means of transport and

communication. Improvement in BOP. Increase in the Forex Reserve. It generates employment opportunities in the country.

Advantages of Export Trade

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Export Procedure

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Finding New Customers

from the directory of Importers of the country. by writing to the Embassy of India in foreign countries. by writing to the Chamber of Commerce by participating in Trade Fairs Through Agents Advertisements Internet

Sending Introduction Letters

Step :1

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Request for Information or RFI

RFI asks for the following information: General Information about the company Company Profile & Strategy Capabilities & Equipments Logistics Quality & Environment Customer Base & Industry Experience Specific Capabilities

Analysis of RFI by the buyer

Step:2

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Request for Quote or RFQ

RFQ contains the following details: Purchase Agreement General Information Part –Wise Requirement Drawing Material Standards Commercial Terms & Conditions

Step:3

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Analysis of RFQ by the seller

Preparation of Technical Feasibility Report by Multidisciplinary team

Step: 4

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Quotation as per RFQ

Analysis of various RFQ by the Buyer

Negotiation

Step: 5

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Raising Performa Invoice

Purchase Order/ Letter of Intent

Step:6

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Samples are send for approval

Along with sample the following documents are send to the supplier:

PPM PPAP Flow Chart of Production

Supply Order

Step:7

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Production

Packing & Marking

Step: 8

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Generation of Commercial Invoice &Packing List

Insurance

Step: 9

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Pre-Shipment Inspection

Excise Inspection

Step:10

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Declaration of SDF form

Step: 11

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Shipment & Custom Formalities

Submission of Documents Appraisement of Documents Carting Order Storing of Goods in the Sheds Examination of Goods Let Export Order Loading Goods Obtaining bill of lading

Step:12

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Preparation of Post-Shipment Documents

Bill of Exchange Commercial Invoice with all Particulars Packing List Bill of Lading Shipping Company Declaration Inspection Certificate Certificate of Origin/ Form 16 A Exchange Control Copy of Shipping Bill SDF form Inspection Report Copy of Order Copy of L/C

Step: 13

Shipment Follow- Up Payment Realization Bank Certificate of Payment Realization

Claim Documents of Export Incentives

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Step:14

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