Report on

“Auto Care 2013”

Date: 3rd October, 2013 Venue: Gujarat University Exhibition Hall,

Ahmedabad

Organized by Supported by

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CONTENTS

Inaugural Session ................................................................................................................. 3

List of Dignitaries ................................................................................................................. 3

Session Details ..................................................................................................................... 4

Welcome and Introductory Remarks by Dr. Rajiv Modi, Chairman, CII Gujarat State Council ............... 4

Address by Mr. Vikram Sinha, Head, Passenger Vehicles Operations, Tata Motors Ltd. ......................... 4

Address by Mr. Rajesh Nambiar, Chief Manager, Technical Services, Indian Oil Company Ltd. ............. 4

Keynote Address by Mr. K.T. Vyas, OSD, Industrial Extension Bureau (iNDEXTb), Government of Gujarat ....................................................................................................................................................... 5

Concluding Remarks by Mr. Hemant Kulkarni, Chairman, CII Gujarat Engineering & Automobiles Panel .......................................................................................................................................................... 5

Plenary Session I ............................................................................................................................................ 5

Welcome and Introductory Remarks by Mr. Hemant Kulkarni, Chairman, CII Gujarat Engineering and Automobiles Panel (Session Chairman) .................................................................................................. 6

Mr. Chirag Sitwala, Director, Inductotherm India Pvt. Ltd. ....................................................................... 6

Mr. Shriniwas Yadav, GM, JBM Auto System Pvt. Ltd. ............................................................................... 7

Mr. Rajesh Nambiar, Chief Manager, Technical Services, Indian Oil Company Ltd. ................................ 7

Mr. Girish Kumar, GM, Paint Operations, Ford India Pvt. Ltd. .................................................................. 7

Panel Discussion .................................................................................................................. 8

Panellists ......................................................................................................................................................... 8

Way Forward ........................................................................................................................ 9

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Inaugural Session

List of Dignitaries Name Organization Designation

Dr. Rajiv Modi CII Gujarat State Council Chairman

Mr. Vikram Sinha Tata Motors Ltd. Head, Passenger Vehicles Operations

Mr. Rajesh Nambiar Indian Oil Company Ltd. Chief Manager, Technical Services

Mr. K.T. Vyas iNDEXTb, Government of Gujarat OSD

Mr. Hemant Kulkarni CII Gujarat Engineering & Automobiles Panel Chairman

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Session Details

Welcome and Introductory Remarks by Dr. Rajiv Modi, Chairman, CII Gujarat State Council Dr. Rajiv Modi on welcoming the dignitaries, extended his gratitude to Mr. K.T. Vyas chairing the session. As the automobile industry is growing, evolving and transforming, gone are the days when one had to wait for six months to own a car after he/she booked it. Now with the people coming to the doorsteps, giving free rides and concessions, the automobile industry has come very far. He continued saying that the Indian Automobile industry has always remained vibrant with the presence of many major players.

Address by Mr. Vikram Sinha, Head, Passenger Vehicles Operations, Tata Motors Ltd. Mr. Vikram Sinha put his insight in the after-market car care industry. The after-market car care

industry has transformed in last 10 years and has taken a great leap. It all started with the

realization of OEMs (Original Equipment Manufacturers) like Tata Motors, Maruti, Mahindra etc.

that car care was the most profitable business. As a result, OEMs systematically worked to

maximize their profitability through capturing the lifecycle spend of the customer. So there was a

systematic campaign by OEMS which engulfed the entire car care industry. After the OEMs, the

dealers came in and then the independent service providers also caught on. The whole industry

started growing and now it has come of age. It sets a critical second wave of expansion,

improvement & breakthrough in technology.

It was further stated that the performance of the sector has been very good in the last five years.

Now an INR 20,000 crore business, the automobile sales have doubled in the last five years. It is

estimated to reach INR 30,000 crores in the next five years.

Address by Mr. Rajesh Nambiar, Chief Manager, Technical Services, Indian Oil Company Ltd. Mr. Rajesh Nambiar mentioned that the auto sector has taken a big leap. OEMs like Tata Motors,

Maruti, Mahindra in the country are today competing with the best in the world as far as

technology is concerned. Today, the market is so competitive that the customer is the king. The cost

and quality have to been closely taken care of by any OEM before it rolls out any model of the car,

SUV or a heavy commercial vehicle. Further the challenges of the OEMs faced in current times were

discussed. It was stated that OEMs face a challenge in becoming a global player & the products

which are made in India should get exported across the globe.

He continued saying that the auto industry does not constitute only OEMs and the oil suppliers but

also other manufacturers (like brakes, steering, spare parts etc.). The after-market industry also has

a great role to play. There is a lot of opportunity for SMEs in this niche.

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It was further mentioned that within next 3 years, it is expected that India will be very close to

China in the car production and by 2020, India is expected to be the no. 1 LCV producer in the

world.

Keynote Address by Mr. K.T. Vyas, OSD, Industrial Extension Bureau (iNDEXTb), Government of Gujarat Mr. K.T. Vyas in his address showed the importance of Gujarat in the development of Auto Sector in

India. It was mentioned that Gujarat provides the best infrastructure to the auto sector players for

their business. Available land closer to the major cities, presence of large skilled force to name a

few. With the production base of Tata and now Maruti in Gujarat, now Japanese OEMs are

expected to arrive in Gujarat. This gives an immense opportunity for the SME base in Gujarat to

expand their business and State Government is ready to provide market to them at the doorstep.

Concluding Remarks by Mr. Hemant Kulkarni, Chairman, CII Gujarat Engineering & Automobiles Panel Mr. Hemant Kulkarni extended his gratitude to all representatives of the Auto sector who became

the part of the elite gathering. He started by saying that Gujarat is indeed one of the leading

industrial state in the country and is marching forward in the 21st century to become one of the

most developed one. It was highlighted that it is the right time to look into developing a self-

sustained flow of technology & knowledge from point of creating to point of usage & the

conference is one of the tiny steps to achieve it.

Plenary Session I Name Organization Designation

Mr. Hemant Kulkarni

(Session Chairman)

CII Gujarat Engineering and Automobiles Panel Chairman

Mr. Chirag Sitwala Inductotherm India Pvt. Ltd. Director

Mr. Shriniwas Yadav JBM Auto System Pvt. Ltd. General Manager

Mr. Rajesh Nambiar Indian Oil Company Ltd. Chief Manager, Technical Services

Mr. Girish Kumar Ford India Pvt. Ltd. General Manager, Paint Operations

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Welcome and Introductory Remarks by Mr. Hemant Kulkarni, Chairman, CII Gujarat Engineering and Automobiles Panel (Session Chairman) After introducing and extending the gratitude to the speakers of the session, Mr. Hemant Kulkarni

continued by saying that the auto component industry has an enormous opportunity for creating

new wealth by delivering value to the world and to the domestic user. The Auto industry employs

half a million people in the organized sector and a million in the organized sector. He was of the

view that the potential is several times this number since the industry in India is emerging as a

world class outsourcing and R&D destination for global auto giants.

Mr. Chirag Sitwala, Director, Inductotherm India Pvt. Ltd. Topic: Future of Automotive Components Industries in India

Mr. Chirag Sitwala put forward some important facts and figures of the auto industry. It is projected

that by 2020, almost 1-1.2 million people will be employed in the auto component industry. There

are about 750 million vehicles on road in the world. It is estimated that this population would grow

to about 1.5 billion by the year 2025. Most of the increase of 750 million vehicles will come from

developing countries. This market will definitely look for low cost automobiles as the rural market is

also opening up and hence India has a tremendous opportunity to meet the future need. It was

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highlighted that India has produced about 3.2 million passenger cars, 0.8 million commercial

vehicles, 0.6 million tractors & 5400 construction vehicles. In spite of the large volumes, India’s

vehicle ownership is just 7/1000 as against 480/1000 in US and 500/1000 in some of the European

countries. Growth per capita and increased level of urbanization will power the growth of major

vehicle sales. By 2030, almost half of India’s population is expected to live in urban areas. Indian

auto component industry’s turnover is reported to USD 40 billion in 2012-13 and is expected to

grow at a CAGR of 14 percent in 2013-14. All this will bring a dramatic growth in demand of

automobile industry.

Mr. Shriniwas Yadav, GM, JBM Auto System Pvt. Ltd. Topic: Challenges of Automotive Components Industries in India

Mr. Yadav discussed the various challenges the auto component industries in India is facing. The

major challenges according to him were

High cost of capital impacting growth

Capacity utilization

Imports: higher than exports

Fighting the problem of counterfeit parts

Building R&D competence and ecosystem

He accentuated that there is a greater need for collaboration between the component

manufacturers, OEMs, machine tool supplies and the raw material industry.

Mr. Rajesh Nambiar, Chief Manager, Technical Services, Indian Oil Company Ltd. Topic: Future of Automotive Oils in India

Sharing some details about the future of automotive oils in India, Mr. Rajesh Nambiar said, “Indian

Lube market is 6th in the world and 2nd only to China in Asia & the Auto Lube market is expected to

grow around 3% annually upto 2020. The car market is growing rapidly and in 3 years India is

expected to be close to China in top position globally. Not only this, India going to be the leading

LCV (Light Commercial Vehicles) producer in the world in the near future

Mr. Girish Kumar, GM, Paint Operations, Ford India Pvt. Ltd. Topic: Highly Efficient and Environmentally friendly Paint Shops for

Automotive Production

“For any new project, paint shop investment is one of the significant elements of the total

investment (15-20% of total project). In an automobile industry one should delight customer

through leadership in quality”, said Girish Kumar, on the topic of highly efficient and

environmentally friendly Paint shops for automotive production.

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Panel Discussion

Panellists Name Organization Designation

Mr. Scott Coates PAC Group Senior Management Consultant

Mr. Nitin Mankad Innovative Tubes & Tyres Ltd. Chairman & Managing Director

Mr. Chirag Sitwala Inductotherm India Pvt. Ltd. Director

Mr. Amar Parulekar Yazaki India Ltd. General Manager

Mr. Rajesh Nambiar Indian Oil Company Ltd. Technical Services

Mr. Sudhir Gupte A D Patel Institute of Technology Professor – Automobile Engineering Department

The session focused on the “Future of Auto & Auto Servicing Industry in India”, where the panelists

discussed in details about the ‘sunrise sector’ and its potential. “The automobile industry has

enormous potential for generating wealth. The industry employs half a million people”, shared Mr.

Chirag Sitwala. Addressing the audience Mr. Shriniwas Yadav, said “ The challenge for automobile

industry lies in raising capital and scaling capacities and customer expectations. The automobile

industry in India is INR 216 thousand crores industry comprising of more than 500 organized and

more than 10,000 unorganized business units.”

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Way Forward The challenge for automobile industry lies in raising capital and scaling capacities and customer

expectations.

The auto market is so competitive that the customer is the king. The cost and quality have to be

closely taken care of by any OEM before it rolls out any model of the car, SUV or a heavy

commercial vehicle.

It is estimated that this population would grow to about 1.5 billion by the year 2025. Most of

the increase of 750 million vehicles will come from developing countries. This market will

definitely look for low cost automobiles as the rural market is also opening up