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Vol. 8 No.1 May / June / July '2000



National Activity

SME Conclave : 10-11 July

Shrimati Vasundhara Raje, Minister of State for SSI and ARI inaugurated the SME Conclave on Best Practices, organised by ACMA at the Maurya Sheraton Hotel, New Delhi.

Complementing ACMA forCanada India Business Council Meeting. designing a holistic programme to benefit SMEs, the Minister reiterated the Government’s support which she said would take all steps to ensure that industry thrives, in the days to come. The situation after April 2001 was a matter of concern and the SMEs would need to adopt modern management practices, be efficient and competitive in order to face these challenges. Falling of the trade barriers, she said, should not be viewed merely as a threat but seen as greater opportunities offered.

In his welcome address, Mr S Seetharamaiah, Chairman, SSI, ACMA said, the Indian auto component industry was passing through the best of times because of the global rush of automakers into the country and the worst of times due to the inability of the Indian market to absorb the best values. It was necessary for the Small Scale Manufacturers to be more customer oriented, improve efficiency, cost competitiveness and lead times of supplies, in order to survive.

President ACMA, Mr V K Mehta, speaking at the inaugural of the Conclave stressed that the small and medium auto component manufacturing units were the key contributors to the total output of the auto component industry. They formed a major part of the industry’s exports. The Indian auto component industry, he said, was undergoing a total restructuring of teiring and many SSI companies would come under tier 2 and 3 segments. He urged manufacturers to quickly find a realistic fit in either segments and evolve strategies for growth. Turning to the Minister, Mr Mehta, reiterated that uncertain regulations in Excise and MODVAT were acting as deterrents in the growth of the industry and proposed to present a representation on these issue.

Speakers at the Conclave were:

Keynote Speaker Mr Jagdish Khattar, Managing Director MUL: PARENT - ANCILLARY RELATIONSHIP

"..... Today, the task seems to be much simpler than when we started. Many major automotive suppliers now manufacture in-house; existing suppliers have improved their production technology which was not case when Maruti started .... "

Second Keynote Speaker Mr Ravi Venkatesan, Chairman Cummins India Ltd. & Managing Director Tata Cummins Ltd: PARENT – ANCILLARY RELATIONSHIP

"...milestones achieved by the company with the support of its suppliers through the years 1993 - 2000...... Tata Cummins Ltd had further targeted to expand to 90,000 engines per year for TELCO’s new generation vehicles... There were around 65 suppliers of which 10 were from the SSI...."

The two day Conclave covered Six Sessions:

1st Day – Hindustan Motors, Kirloskar and TELCO shared their company’s experiences on Excellence through Quality Leadership. Presentations were made by Mr P Chatterjee, Sr Vice President Hindustan Motors,
Mr K M Khandekar, Sr General Manager, KOEL and Mr N K Dutt, Astt General Manager TELCO.

The post lunch Session on Day 1 saw one of the most interactive sessions on one of the fastest growing technology "the Web Technology" with focus on e-portals. Presentations were made by Mr A Vaidyanathan, Director & CEO Autoparts Asia.com Pvt Ltd, Mr Patrick A McGoldrick, Director Tata Technologies Pte Ltd, Mr Balu Srinivasan, General Manager Ford India Ltd, Mr Dev Sharma, Head E-Portals Satyam Infoway Ltd and Mr Vijay Kumar Spoke on the 5Ms

2nd Day – began with a session on Building Competitive Edge through Best Shop-floor Practices. Very thought provoking and interesting presentations were made by Mr N Raghunathan, Executive Vice President Sundaram Clayton, Mr Prasanna Mutha, Properietor Manikprem Industries, Mr Selvam and Mr Sampath, Managing Partners Jagadeesan Industries.

The ITC Benchmarking Guage – SIDBI extends financial support to ACMA Members, particularly, for SSI units applying for Benchmarking. Mr Samir Kumar, SIDBI presented some important schems on Financing the receivables from the OEMs. Mr. K S Subramanian, State Bank of India, presented the change of pattern in financing – from Security finance to need based finance with concessional interest rates allowed.

Mr Subodh Bhargava, Former Group Chairman and Chief Executive Eicher Goodearth Ltd & Advisor, Eicher Group made the valedictory address. Complementing ACMA for organising the programme, Mr Bhargava, dwelt on the changes taken place in the automotive industry from the 1980’s with the arrival of Maruti, to the subsequent challenges in the 1990s of the liberalization process and suggested some Best Practices useful in the game of survival: New methods of planning; Traditional push; Make what the market wants; Reduce inventory and Instant feedback.

Mr Bhargava ended his address on an optimistic note, reminding all that the new millennium would bring great opportunities for SMEs with the world opening up and wished success to all participants in their future endeavours.

The programme was a tremendous success with more than 150 participants from members, non-members, the vehicle industry counterpart associations, banks and senior government officials.


Top table with Minister of State
for SSI & ARI, Shrimati Vasundhara Raje (centre)


Delegates


Fifth Executive Committee Meeting : 13 July 2000

The 5th Executive Committee meeting was held in Chennai.
OEM Interaction - Ashok Leyland Ltd : 13 July 2000

The Executive Committee and Southern Region Members met and interacted with Mr R Seshasayee Managing Director, AL and senior colleagues Mr R Jagarnnath Whole Time Director, Mr S Nagarajan ED (Projects & Quality) and Mr Anand Mundkur ED (Business Planning).

The presentation made by Ashok Leyland, briefly, mentioned that present economic conditions gave out confused signals – having taken off at speed the economy spurted for a period and then the process of reforms slowed.

With reference to the automotive industry, it was said that OEMs should continue laying stress on three main issue: 1) mid-size and high-end cars-likely to see robust increase (2) environment norms-though traumatic would ensure long term benefits (3) multi-axle vehicles - would see an increase in market share, with market expansion.

Al’s new outlook covered

Benchmarking for process improvement Improved supplier-customer equations De-intergrated plants
Switching from Leyland to IVECO engines Factory-built-cabs for all vehicles and Developing new products for exports.

Price reduction was an important point on the agenda and AL suggested, component manufacturers study and exercise Value Engineering; price aftermarket parts marginally higher than that given to OEMs and lastly, the essential ingredient of Quality control be incorporated into processes. Note was taken of this last point and ACMA members were commended for leading in Quality & Technology improvements.