CHAPTER 1
PROFILE OF THE INDUSTRYTHE INDIAN AUTO ANCILLARY INDUSTRY
The Indian auto ancillary industry is one of India's sunrise
industries with tremendous growth prospects. The automotive
industry is an important segment of the economy in any country as
it links many industries and services. The Indian auto industry has
the potential to emerge as one of the largest in the world.
Presently, India is:
The largest two-wheeler manufacturer in the world.
The largest three-wheeler market in the world.
The second-largest two-wheeler market in the world.
The fourth largest commercial vehicle market in the world.
The fortunes of the automotive components segment are linked to
the performance of the auto industry. The auto ancillary industry
gives support to sectors such as metals that includes steel,
aluminum, copper and also to many other machine tools, plastics,
rubbers, polymers, glass, surface transport. As per Indian
Suppliers report, The automotive sector in India contributes to 5%
of the nations GDP and 17% of the indirect taxes as a result of
which the government last year charted a 10-year blueprint for the
sectors growth. This envisages the automotive sector output
reaching a level of $145 billion accounting for more than 10% of
the GDP by 2016.Indian auto industry has evolved around three major
clusters: Mumbai-Pune-Nasik-Aurangabad (west);
Chennai-Bangalore-Hosur (south); and Delhi-Gurgaon-Faridabad
(north).Export-oriented companies have formed base in the
west/south regions, due to proximity to port.
PROSPECTS: Looking forward, the industry displays tremendous
potential in generating employment and boosting entrepreneurship in
the country. The spate of new investment plans announced by global
and domestic automobile manufacturers promises the emergence of
India as a global hub for auto components. The industry is
transforming, and the boost in demand will see the emergence
ofseveral new players in the industry. The vast market for auto
components, and the diverseproducts and technology involved ensures
a place and role for many. At the same time, the entry of several
global automobile manufacturers will bring in more regulation into
the industry and see a pruning of the spurious market. Among the
smaller players in the unorganized segment, this implies moving
away from being standalone companies, to entering into either
contract manufacturing or being ancillary units. The newly defined
rules are specialization, development and delivery that hold the
key to success in the auto component industry.
ASSOCIATION
The Automotive Component Manufacturers Association of India
(ACMA) is the nodal agency for the Indian Auto Component Industry.
It's active involvement in tradepromotion, technology up-gradation,
quality enhancement and collection and dissemination ofinformation
has made it a vital catalyst for this industry's development.
Its other activities include participation in international
trade fairs, sending trade delegations overseas and bringing out
publications on various subjects related to the automotive
industry. ACMA is represented on a number of panels, committees and
councils of the Government of India through which it helps in the
formulation of policies pertaining to the Indian automotive
industry. ACMA represents over 600 Companies, whose production
forms a majority of the total auto component output in the
organized sector.
Quality
The industry has been making rapid strides towards achievement
of world-class Quality Systems by imbibing ISO 9000/ISO14001/QS
9000/TS16949 Quality Systems. Till now 562 companies in ACMA
membership have been certified to ISO 9000, 208 companies awarded
to ISO14001, 445 companies have been certified with TS16949, 99
companies havebeen certified with OHSAS18001, 15 Companies have won
TPM Award, 11 Companies won the Deming prize 1company won Japan
Quality Medal, 1company won Shingo Silver Medallion and 3 companies
won the JIPM Excellence award.
Exports
The industry has been exporting around 13% of its output. In the
year 2009-10, industry has exported US$ 3.8 billion. Principal
export items include replacement parts, tractorparts, motorcycle
parts, piston rings, gaskets, engine valves, fuel pump nozzles,
fuel injectionparts, filter & filter elements, radiators,
gears, leaf springs, brake assemblies & bearings, clutch
facings, head lamps, auto bulbs & halogen bulbs, spark plugs
and body parts.
PROFILE OF HI-TECH ARAI PVT LTD MADURAI
Hi-Tech Arai Ltd is a Madurai based oil seals and automobile
components manufacturing company. Having joint venture with Arai
Seisakusho co Ltd Japan and Mitsubishi Corporation, Japan. The
company previously called as Hi-Tech ancillaries ltd after joint
venture with Arai Seisakusho co ltd, the company name has changed
to Hi-tech Arai ltd.
The company was established to produce rubber components and oil
seals for the world famous companies like Maruti Suzuki, Bajaj,
TVS, Honda, Yamaha, Toyota, etc. The company was founded by
Mr.R.Lakshmi Narayanan, with the capital ofRs.4.5 lakhs and with
the manpower of 75 as a family owned concern. Mr. B.T.Bangera and
Mr.R.Lakshmi Narayanan both were the ex-employees of Fenner (India)
ltd. Their good relationship made them to form this great venture
in 1985. Later the company entered into technical collaborations
with m/s Mitsubishi Japan and with Arai Seisakusho ltd
Japan formanufacture of oil seals, O-rings, reed valves, molded
rubber product, valves stem seals etc in1987. The percentage of
collaboration is 88.84% forArai Seisakusho Ltd and14.29%
forMitsubishi Corporation
B.T.BANGERA MANAGING DIRECTOR
HI-TECH ARAI LTD
Growing and achieving excellence through people is the motive of
the organization. The core belief is that it is possible to achieve
zero defects and achieve leadership in the market. The company also
owns 23 wind mills each with the capacity of producing 11MW power.
Hi-Tech Arai is the only manufacturer of reed valves in India.
I-Tech Arai is controlled by 9 boards of directors. Among them
3 Promoter Directors
5 Directors from Arai Seisakusho Ltd
1 Director form Mitsubishi Corporation
MISSION:
To produce high quality products
At competitive prices
Combined with on-time delivery
Strictly adopting environmentalfriendly processes.
VISION: 1993: Market leader in the country in 5 years
1997: One of the top 3 in the world andin the field of Oil
Seals
2007: To become thepreferred supplier of all customers
2010: Aims to touch 400 corore turn over by overtaking the past
one of294 crore
QUALITY & ENVIRONMENTAL POLICY
Strive for continual improvement of our quality performance by
meeting the changing requirements of our customers and our
environmental performance byprevention of pollution and maintenance
of wastes.
Manufactures high quality products at competitive prices by
adhering to the system, processes and procedures and continually
improving the same.
Promote energy savings and conservation of resources.
Comply with all applicable legislative, regulation and other
requirements including those that apply to environmental aspects
governing our activities.
Achieve the above by creating awareness among our employees
through propertraining and providing conductive work
environment.
MILESTONES:
1985: Hi-Tech Ancillaries was registered.
1986: First unit in Tanakkankulam was started.
1987: Technical collaboration with Arai Seisakusho Company Ltd,
Japan.
1990: Totally professionalized.
1991: Second unit in Trichy was started.
1991: Awarded best SSI unit in the District.
1992: Awarded best SSI unit in the State.
1993: Third unit in K Pudur was started.
1994: Joint venture with Arai Seisakusho & Mitsubishi
Corporation, Japan.
1994: Hi-Tech Ancillaries changed to Hi-Tech Arai Ltd.
1995: New compounding unit in Kappalur.
1995: Fourth unit in K Pudur.
1997: Fifth unit in K Pudur (dedicated to MUL)
1999: Most modern factory at K Pudur.
2000: Won 1stprize on quality circle convention at state level
& regional Level.
2000: Madurai jasmine quality circle (National level)
2000: Initiation of Environment Management System certification
Program &obtained the certification in July
2001: White raised quality control won1st prize in state level
& national Level.
2001: Quality award from Lucas TVS Ltd.
2002: Award from Keihin Lie Ltd Pune for cost optimization.
2003: Awarded best SSI unit in the State Level.
2003: The Company was accredited ISO 9001:2000
Certification
2005: CII & APAC awarded Best Industry practicing the
HIV/AIDS Prevention for its Aids prevention and control
project.
2006: First Export order from China.
2008: Received ISO TS-16949:2002.
2010: Himalaya quality circle of Hi-Tech Arai ltd won the Par
Excellence Award in the national convention on quality
concepts-2010held at Visakhapatnam.Company products:
Oil seal
O Rings
Reed valve Assembly
Joint carburetor
Moulded Rubber Products
PROFILE OF PRODUCTS
a) Oil Seal: Oil seal is a micro precision product.
Oilsealsareespeciallymeantforpreventingoil leakage particularly
in two wheelers & four wheelers like wheel hubs, front fork,
transmission, and gear shift arm etc.,
Failure of oil seal in engine parts may lead to a serious damage
to the vehicle.b) O Rings:
Circular products having round cross-section or any
customers
specified sectional from which just fits in assemblies
(pumps,
carburetors etc) to avoid or stop leakage of fluid gas from
the
system.
c) Reed Valve Assembly:
Reed valve assembly is used in all modern two stroke engines
as
a device to control over air fuel mixture sent into the
engine
combustion chamber.
It is used for fuel efficiency and optimum output.
Reed valve assembly ensure complete combustion of fuel
inside
the engine combustion chamber for avoiding emission of
unburned gases thereby contributing towards pollution
control.
c) Join carburetor:
Itisadevicethatblendsairandfuelforaninternalcombustion
engine
The carburetor works on Bernoulli's principle: the faster air
moves, the lower its static pressure, and the higher its dynamic
pressure.
d) Moulded Rubber Products:
Moulded rubber products are the products developed to suit
the specifications and design of customers, so as to meet
the
Exact working conditions of particular model of vehicles.
Usually the moulded rubber products reduce the noise, stroke
Vibrations and protect certain othercomponents from dust,
Water, oil etc.
The company is the single source of supply for mouldedproducts
throughout the country.