SUMMER TRAINING PROJECT PRESENTED BY:POOJA KHULLAR1
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. 2Indian Auto Industry
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 2008-15.3
4Segment wise division
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 India5Opportunities
6Auto components industry production
7FDI
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.8Export
9Export Destinations
10Export & Import of Auto Components
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 World11India’s Position in World Production
12Some major Acquisitions
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.13Incentives- Duty Regime
14The future of auto in India 2016: (million units)
1.  Infrastructure Deficit2. Talent Crunch3. Scaling-Up the industry4. Access to World-class Technology and Quality       Practices5. Remaining cost competitive15Challenges India is committed to address
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.16About G.S. Auto International
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.17
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, 198518Important Landmarks
191990: 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.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 componentsInternational Business Tie-up with V. Orlandi of Italy to introduce their Automotive and waste management products in Indian Market20
Manufacturing Facility in LucknowManufacturing Facility in South India21Future Plans
Sense of urgencyBetter Relationships and better Quality of products & Services.Continuous Improvement for excellence and consistency.22 Principles of Business
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;23VISION
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 customer24Philosophy
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.25Human Resources
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.26
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.27Industrial Relationships
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.28Employee Welfare
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.29Safety
ISO: TS 16949 Certification BVQI, UK (April, 2005)QS 9000: Accredited in Dec, 99 by   BVQI, U.K.   Re-Certified in June, 2003ISO 9002: Accredited In March, 97 by BVQI, U.K.30QUALITY CERTIFICATION
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.31 Design & Development
Cold Forging FacilityHot Forging FacilityBar Drawing FacilityHeat Treatment FacilityCarburizingHardeningTamperingAnnealingInduction HardeningMachine FacilityCNC Machining and Turning CentresSPM’sMulti-Station Robotized Transfer Lines 32Manufacturing Facilities
Surface TreatmentPhosphatingAuto BlackZinc Electro-PlatingPainting, Powder CoatingTool RoomFerrous and Non Ferrous FoundryTesting FacilitiesChemicalPhysicalMicro Structural AnalysisMetallurgical LaboratoryCAD/Uni Graphics & other Designing Software33
Machined PartsKing Pin SetSpring PinsShackle BoltsCheck NutsAxle StudsU-BoltsCentre BoltsMiscellaneous Bolts and Genuine Nuts34Product Range
Forged Parts:Wheel BoltsSpindle DamperShock Absorber PinHigh NutsCastle NutsHex NutsFlange NutsWasher Type Nuts35
Non Ferrous Cast Components:Customized Aluminium Bronze Parts of Different Sizes (Bushes)Ductile Iron Cat Components:Spring Hanger Shackle/BracketEngine MountingBase PlatesThreaded RingsCompressor Mounting BracketCasting in Weight Range 1-20 Kgs.36
G.S. Automotive (P) Ltd.G.S. Auto Comp (P) Ltd.G.S.  Consumer goods (P) Ltd.37 Group Companies
G.S. Auto has strong presence in OEM (Original Equipment Manufacturer)Replacement MarketExport Market38Customer Base
EducationChildren, 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. 39Social ConcernsInstitutes      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 SchoolAutomotive Components Manufacturers Association Of India (ACMA)Society of Automotive Engineers, USAConfederation Of Indian Industry (CII)Engineering Export Promotion CouncilAuto Parts Manufactures Association, Ludhiana (APMA)Institute of Professional Innovators¸ Detroit40Memberships
41SWOT Analysis
42
43TitleActual Realization Of an Export Order
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.44Objectives
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 Export45Introduction to Exports
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. 46Advantages of Export Trade
Export       Procedure47
Finding New Customersfrom 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     InternetSending Introduction Letters48Step :1
Request for Information or RFIRFI 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 buyer49Step:2

Summer Training

  • 1.
    SUMMER TRAINING PROJECTPRESENTED BY:POOJA KHULLAR1
  • 2.
    The Indian autocomponent 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. 2Indian Auto Industry
  • 3.
    The industry's turnoveris 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 2008-15.3
  • 4.
  • 5.
    Domestic market projectedto 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 India5Opportunities
  • 6.
  • 7.
  • 8.
    More than afourth (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.8Export
  • 9.
  • 10.
    10Export & Importof Auto Components
  • 11.
    Largest Three WheelerMarket 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 World11India’s Position in World Production
  • 12.
  • 13.
    The reduction inthe 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.13Incentives- Duty Regime
  • 14.
    14The future ofauto in India 2016: (million units)
  • 15.
    1. InfrastructureDeficit2. Talent Crunch3. Scaling-Up the industry4. Access to World-class Technology and Quality Practices5. Remaining cost competitive15Challenges India is committed to address
  • 16.
    The journey ofexcellence 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.16About G.S. Auto International
  • 17.
    He formed asmall 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.17
  • 18.
  • 19.
    1973: Got convertedinto private limited co. Gurmukh Singh & sons Pvt. Ltd. On 29th June, 1973
  • 20.
    1985: Renamed asG.S. Auto International Ltd. On 5th Aug, 198518Important Landmarks
  • 21.
    191990: Ryait Exportswas established to cater to Export Market
  • 22.
    1997: ISO 9002Certification in Mar, 1997 by BVQI, U.K.
  • 23.
    1999: QS 9000Certification in Dec, 1999 by BVQI, U.K.
  • 24.
    2003: Re-Certified QS9000 in June, 2003 by BVQI, U.K.
  • 25.
    2005: ISO/TS 16949Certification in April 2005 by BVQI, U.K.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 componentsInternational Business Tie-up with V. Orlandi of Italy to introduce their Automotive and waste management products in Indian Market20
  • 26.
    Manufacturing Facility inLucknowManufacturing Facility in South India21Future Plans
  • 27.
    Sense of urgencyBetterRelationships and better Quality of products & Services.Continuous Improvement for excellence and consistency.22 Principles of Business
  • 28.
    Customer satisfaction throughbest 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;23VISION
  • 29.
    Understanding and servingthe 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 customer24Philosophy
  • 30.
    Workmen trainees whohave 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.25Human Resources
  • 31.
    Communication meeting isbeing 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.26
  • 32.
    Company has maintainedits 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.27Industrial Relationships
  • 33.
    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.28Employee Welfare
  • 34.
    All the employeesincluding 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.29Safety
  • 35.
    ISO: TS 16949Certification BVQI, UK (April, 2005)QS 9000: Accredited in Dec, 99 by BVQI, U.K. Re-Certified in June, 2003ISO 9002: Accredited In March, 97 by BVQI, U.K.30QUALITY CERTIFICATION
  • 36.
    In-house facilities fordesign 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.31 Design & Development
  • 37.
    Cold Forging FacilityHotForging FacilityBar Drawing FacilityHeat Treatment FacilityCarburizingHardeningTamperingAnnealingInduction HardeningMachine FacilityCNC Machining and Turning CentresSPM’sMulti-Station Robotized Transfer Lines 32Manufacturing Facilities
  • 38.
    Surface TreatmentPhosphatingAuto BlackZincElectro-PlatingPainting, Powder CoatingTool RoomFerrous and Non Ferrous FoundryTesting FacilitiesChemicalPhysicalMicro Structural AnalysisMetallurgical LaboratoryCAD/Uni Graphics & other Designing Software33
  • 39.
    Machined PartsKing PinSetSpring PinsShackle BoltsCheck NutsAxle StudsU-BoltsCentre BoltsMiscellaneous Bolts and Genuine Nuts34Product Range
  • 40.
    Forged Parts:Wheel BoltsSpindleDamperShock Absorber PinHigh NutsCastle NutsHex NutsFlange NutsWasher Type Nuts35
  • 41.
    Non Ferrous CastComponents:Customized Aluminium Bronze Parts of Different Sizes (Bushes)Ductile Iron Cat Components:Spring Hanger Shackle/BracketEngine MountingBase PlatesThreaded RingsCompressor Mounting BracketCasting in Weight Range 1-20 Kgs.36
  • 42.
    G.S. Automotive (P)Ltd.G.S. Auto Comp (P) Ltd.G.S. Consumer goods (P) Ltd.37 Group Companies
  • 43.
    G.S. Auto hasstrong presence in OEM (Original Equipment Manufacturer)Replacement MarketExport Market38Customer Base
  • 44.
    EducationChildren, the futureof 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. 39Social ConcernsInstitutes Presently, following institutes are being run by Education Trust for their smooth functioning Guru Nanak Public School
  • 45.
    Ramgarhia Girls College
  • 46.
    Ramgarhia Middle School
  • 47.
    Ramgarhia Senior Secondary SchoolAutomotive Components Manufacturers Association Of India (ACMA)Society of Automotive Engineers, USAConfederation Of Indian Industry (CII)Engineering Export Promotion CouncilAuto Parts Manufactures Association, Ludhiana (APMA)Institute of Professional Innovators¸ Detroit40Memberships
  • 48.
  • 49.
  • 50.
  • 51.
    To study theexport procedure of auto part industry.To study how export marketing is done.To study the documents required for processing an export order.44Objectives
  • 52.
    Exports refer tosale 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 Export45Introduction to Exports
  • 53.
    Exchange of TechnicalKnow –How.Development of means of transport and communication.Improvement in BOP.Increase in the Forex Reserve.It generates employment opportunities in the country. 46Advantages of Export Trade
  • 54.
    Export Procedure47
  • 55.
    Finding New Customersfromthe 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 InternetSending Introduction Letters48Step :1
  • 56.
    Request for Informationor RFIRFI asks for the following information:General Information about the company
  • 57.
  • 58.
  • 59.
  • 60.
  • 61.
    Customer Base &Industry Experience
  • 62.
    Specific Capabilities Analysisof RFI by the buyer49Step:2