Challenges of Automotive Components Industries in India, Future of Automotive Oils in India and Highly Efficient and Environmentally friendly Paint Shops for Automotive Production.

1. 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