Market analysis of the Indian automobile industry

The chief purpose of the undertaking is to carry on market analysis of the Indian car industry. Anand Automotive Systems have a ’51:49 ‘ joint venture with Henkel Teroson India ltd. The company chiefly produces industrial adhesives and sealers for four Wheelers. The chief purpose of this undertaking is to happen out the possible for market enlargement in the other sections of the Indian car industry.

Before the liberalisation of the Indian economic system, it was non possible for the companies to import engineering and develop it into the net income devising mantra but with the liberalisation policy being launched helped the Industry sector to develop and turn in India. It non merely consisted of the package which help the companies to manage the indispensable informations satisfactorily and firmly but besides to pull off the systems of the organisation in a better and free fluxing manner, which non merely assist them to bring forth net incomes but besides to turn in footings of concern and repute.

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As Car industry grew by springs and bounds after 1991 reforms, need for adhesive and sealers shot up. We were among the taking solution suppliers for Automobile industry. Our organisation was known to universe for its committedness to quality. We entered Indian market with Anand automotives which are taking sellers to OEMs.Anand group has now has one-year gross of US $ 770 million. Under the umbrella of Indian spouse we are working as solution driven squad. Our trade name Teroson and Loctite are working together to supply inventions to our auto industry. We provided Noise quiver and harshness solutions to autos due to which the company was able to soothe for the rider and image for our honored client.

We are besides into diminishing the use of prison guards as clip passed were prone to corrosion and increased the weight of the auto, which resulted in lessening in milage.

The advanced solutions by Henkel in this field were revolutionising as we are driven by our values and mission. Our liability to best of quality processs by JASO and ASTM made us a outstanding name in concern. We were besides given best Ethical patterns award in 2010. We have set a benchmark in adhesive and sealant concern. Recently we have had turbulences in universe economic system and we were besides hit by crisis, but in recent times we were able to defy that issue. We are back with new inventions and challenges for pupils, minds, professionals at Henkel invention challenge, in which people bring their penetration about their futuristic attack of how they see Henkel ‘s concern in 2050. Henkel pays them regular wagess to those people.

Company Profile

Henkel in brief:

[ 1 ] It is a Global provider of advanced trade names and engineerings.

[ 2 ] It holds 133 old ages of Brand success.

[ 3 ] It has competency in three concern sectors.

Laundry and Homecare

Cosmetics

Adhesive engineerings

[ 4 ] It achieved gross revenues of 13,153 million Euros in 2009.

[ 5 ] Henkel Teroson India Limited, headquartered at Gurgaon is a Joint Venture Company of Henkel KGaA and Anand Automotive Systems and has Technical License with Sunrise MSI Corporation Japan. Henkel Teroson India has fabrication installations at Gurgaon, Chennai and Parwanoo. Henkel Teroson India is TS 16949, ISO 14001 and OHSAS 18001 certified Company by DQS of Germany. The company manufactures and supplies Adhesives, Sealants and NVH Products to all Automotive OEM ‘s in India

[ 6 ] Henkel Toreson India limited industries adhesives, sealers and coatings.

[ 7 ] Henkel ‘A trade name like a friend ‘this claim underscores ourA vision to do people ‘s lives easier, better and more beautiful with our trade names and technologies.usiness reas:

Henkel – A Brand like a Friend

Henkel, headquartered in Dusseldorf / Germany, has approximately 50,000 employees worldwide and counts among the most internationally aligned German-based companies in the planetary market place. Peoples around the universe trust in trade names and engineerings from Henkel.

In India:

Henkel India Ltd, established in 1987 is a subordinate of Henkel AG & A ; Co. KGaA, Germany. Headquartered at Chennai in India, Henkel India Ltd. , operates in concern countries of Laundry, Home Care, Cosmetics, Toiletries and Hair Care. It comprises of national and international trade names such as Pril, Henko, Fa, Margo, Mr. White, Chek, Bref, Igora Royal, BC Bonacure, Strait Therapy, Glatt & A ; Natural Styling and Osis.

Henkel Adhesive Technologies India Private LimitedA is a subordinate of Henkel AG & A ; Co. KGaA, Germany. Henkel Adhesive Technologies has fabricating installation in Jejuri, Maharashtra. Henkel Adhesive Technologies operates in the concern countries of fabricating Loctite anaerobiotic adhesives, cyanoacrylate adhesives, silicone sealers and polymer complexs. Loctite merchandises provide solutions across whole spectrum of adhesives engineerings and fabrication procedures. They are used in every bit diverse as electronics, automotive, aerospace, and biomedical and many fabrication industries.

Henkel Chembond Surface Technologies Ltd. , established in 1996, is a joint venture between Henkel KGaA and Chembond Chemicals Ltd. Headquartered in Navi Mumbai, India, Henkel Chembond operates in the concern countries of Metal Treatment Chemicals, which includes pretreatment chemicals, impersonal cleaners, lubricators, and coatings. The company offers its merchandises to the Indian automotive OEM ‘s and component providers, steel industry, general industry, contraption, building equipment, air power, defence, and aluminium clients. The celebrated trade names offered by Henkel Chembond in the state include BonderiteA® , MultanA® , P3A® , TurcoA® , AutophoreticA® , AquenceA® , and PasseriteA® . Henkel Chembond ‘s fabrication installations are located in Tarapur and Sitarganj with warehouses and offices across the state.

Henkel CAC Pvt LtdA ( once Converter Adhesives and Chemicals Pvt Ltd. ) , established in 1985 is a subordinate of Henkel AG & A ; Co. KGaA, Germany. Headquartered at Mumbai in India, Henkel CAC operates in concern countries of fabrication of dissolver based, solvent free and cold seal laminating adhesives used in flexible packaging industry. Most of manufactured points come under the trade name of Liofol. In add-on to these Liofol merchandises Henkel CAC sells the bequest CAC merchandises in domestic and International markets.

Adhesive Technologies

Henkel is the universe market leader in adhesives, sealers and surface interventions for consumers, craftsmen and industrial applications.

From our long tradition we have a well-balanced portfolio of international, regional and local trade names. Henkel offers a battalion of applications to fulfill the demands of different mark groups – consumers every bit good as craftsmen and industrial concerns.

Selling of Henkel adhesivesA began on June 22, 1923, when the really first bringing of adhesives left the Henkel installation in Dusseldorf, Germany. This historical milepost marked the birth of a concern section in which Henkel is now planetary market leader.

Our subordinate is Dial Corporation

Market Share of Henkel Teroson

Soon Henkel holds 60 per centum of adhesives and sealers concern in India. It is a taking provider of stuff to Tata motors, Hyundai, Ashok Leyland ( chance ) , Maruti, and list moves on and on.

Henkel explores concern in every possible facet. Its quality and selling expertness come up harmonizing to demand of client. The procedure is that at Henkel the new concern development squad explores for prospect concern unit arrange an assignment and showcase the applications that it can supply. The quality staff works on kaizen and supports on germinating and transforming itself. They intake summer housemans and foster them. Interns in return learn and unlearn and gain the corporate civilization thereby heightening value by supplying them analysis by their position.

Henkel takes enterprise and being a household explores the best of everything and shows it to one and all. It has its publications called Henkel life in which employees and direction get to cognize what is presently in their position of prosecuting the household mission. It has redacting and publication office in China, for Asia Pacific.

Henkel is working with all its sections for cost film editing steps as good. I have self observed some things which need to be done to diminish outgo and salvage the needful, which I have shared with the company HRs.

Henkel is Worldwide no. 1 in adhesives, sealers and surface intervention solutions for automotive industry with $ 1 billion gross revenues.

Henkel provides Structural solutions like: –

Liquid Gasketing

Metal Pretreatment

Sealing

NVH solutions

Automotive electronics

Coating

Cleaning & A ; lubricators

We deal in following classs:

Adhesive additives

Adhesive rosins

Adhesive materials, Polyvinyl

Coatings

Coatings adhesives

Coatings, glass

Industrial sealers

Sealants

Sealants & A ; H2O proofing

The inside informations of Company are as follows:

Address

77, Industrial Development Colony, Mehrauli route, Gurgaon.

Pin codification: 122001

Ph no. 0124-2321749, 4324152

Facsimile: 0124-2321401

Web site: www.henkel.com

Introduction

The first two stages of the undertaking involves: –

[ 1 ] The Indian coach fabrication industry.

[ 2 ] The Indian two-wheeler fabrication industry.

The undertaking involves aggregation of secondary informations from beginnings like newspaper and the cyberspace merely. Here is a split stand foring the Indian car industry:

It can be seen that the commercial vehicle section is merely 4 % of the entire market. Out of this more than 2 % are trucks and the remainder, i.e. less than 2 % forms the Indian coach industry. However, the two-wheeler section has a batch of possible with about 4/5th of the market portion.

Phase I – The Indian coach fabrication industry

The Indian coach industry is decidedly a really of import portion of the Indian car industry in our state. Over the last decennary, the coach industry has grown to a great extent and new types of coachs with better installations and modern comfortss have come up. Due to the fast development of substructure and more roads in India, more and more people from the rural countries are besides nowadays availing of the coach services. This has been a great aid for the India coach industry. In India the fabrication human ecology is chiefly concentrated in Chennai, Pune, Bangalore and NCR. Component market is extremely fragmented with 6 % organized which constitutes to about 75 % value and 94 % unorganised sector accounting for the other 25 % value.

With the recent inventions, new and modern coachs are being introduced into the market. These coachs are broad and comfy and hence user friendly. They are besides eco friendly and the milage is besides reasonably good. Presents, new types of coachs are being introduced which are equipped with advanced installations and services such as air-conditioners, rider information system, air suspension system, high quality engines and transmittal systems and so on. With more such coachs being introduced, the client base is besides expected to lift reasonably good over the few old ages.

The India coach industry comprises a figure of categories and classs which are loosely based harmonizing to their utilizations and the services offered. Normally, the coachs in the state consist of different classs such as:

Electric Buss

School Buss

Commuter Buss

Cruiser coachs

Deluxe Buss

Mini Bus

LHD Buss

Tourister Buss

The major participants on the Indian coach fabrication industry are as follows: –

Ashok Leyland

Tata motors

Volvo

Eicher

Swaraj Mazda

Hindustan motors

Force motors

Mahindra and Mahindra

Temsa

Mercedes

JCBL

The major participants in the Indian coach fabrication industry are Ashok Leyland and Tata motors with Ashok Leyland being the absolute market leader with a market portion of approximately 57 % . Companies like Swaraj Mazda and Hindustan Motors have made names in the mini coach section. Other companies in the Indian coach fabrication industry are Force motors, Volvo, Eicher and Mahindra and Mahindra.

With the liberalisation of the Indian market and easy traveling attitude of the Indian Government and besides the addition in the commuter base, even foreign companies have started puting in the India coach industry as they perceive it as a great market range. Premier planetary coach company Volvo set the criterions by come ining the luxury and Tourister coach section in the state. Recently, Mercedes has besides entered the luxury coach sector in the state with its high category and advanced air conditioned coachs in add-on to their broad scope of alien four Wheelers. Apart from these, some good known coach companies are believing of come ining the luxury coach section. They are Mobitec, Konevekta, Bitzer, and Allison Transmission and so on. Temsa, the planetary coach company from Turkey besides plans to come in India by the twelvemonth 2010-11.

Presently, the Indian coach industry is turning at the rate of about 10-15 % and it is expected to lift in the hereafter. Soon, there are about 3 coachs in India per 1000 people as compared to around 9-10 coachs per 1000 people in China. So, we can see that there is immense potency in this market.

Let us larn more about each of the companies in inside informations.

[ 1 ] ASHOK LEYLAND

Ashok Leyland is one of the major participants in the Indian car industry. It is an absolute market leader in the Indian coach fabrication industry with a market portion of approximately 57 % . Ashok Leyland chiefly produces three types of coachs in India. They are as follows: –

CNG buses – driven by CNG.

Double Decker buses – two tier seating agreement

Anteroom coachs – little compartments for one or two individuals merely.

Ashok Leyland is the lone Indian company to bring forth dual Decker coachs. The followers is a list of the assorted types of coachs manufactured by Ashok Leyland: –

[ 1 ] Airport tarmac manager

[ 2 ] Double Decker – rider coach

[ 3 ] Stag BS-II – Diesel mini coach

[ 4 ] Viking BS-II

[ 5 ] Viking BS-III

[ 6 ] Viking CNG BS-III

[ 7 ] Viking SLF BS-III

[ 8 ] 12 M Bus BS-II

[ 9 ] Cheetah BS-II

[ 10 ] Cheetah BS-III

[ 11 ] Lynx BS-II

[ 12 ] Vestibule coach – drawn-out coachs

[ 13 ] 12 M coach

[ 14 ] Panther BS-II

ASHOK LEYLAND – CISCO [ IBUS2 ]

On 7th January this twelvemonth, Ashok Leyland and Cisco signed a Memorandum of Understanding ( MoU ) as per which the companies intend to develop sector-specific solutions that help enable Vehicle-to-Infrastructure ( V2I ) communicating. The companies intend to work together to present solutions that focus on transit direction, incident & A ; exigency medical response every bit good as nomadic security targeted ab initio at Government and defense mechanism sectors. Ashok Leyland and Cisco hosted a prevue of the first solution from this coaction, the iBUS2, which combines user-friendly mobility along with best-in-class connectivity at Ashok Leyland ‘s base at the Auto Expo 2010 in New Delhi.

IBUS2 besides offers province of the art digital communicating equipment that wirelessly communicates in real-time with a distant control Centre for the exchange of critical information which is required for determination devising. So, with an incorporate radio communicating web ( long scope Mobile and short scope Wi-Fi communicating ) , the iBUS2 allows safety forces to convey a broad scope of critical informations including voice, information, and images and streaming video.IBUS2 signifiers portion of the iBUS series from Ashok Leyland that integrates relevant engineerings with mobility solutions. The new iBUS2 solution solves a long-felt demand in security readiness, with its advanced characteristics easing intelligent responses to exigency state of affairss. Cisco ‘s Smart+Connected Health solutions every bit good as its Smart+Connected Safety and Security solutions for incident response are integrated into the iBUS2.

The iBUS2 can besides be unambiguously configured for other possible applications such as citizen services, ‘Business-on-Wheels ‘ for corporate, banking and retail clients every bit good as ‘Service-on-Wheels ‘ for health care, tele-medicine and synergistic e-learning.

Ashok Leyland has been a leader in the Indian coach market, supplying the widest scope of theoretical accounts and has besides pioneered inventions in mass transit in the state. This MoU heralds the following measure for them, of traveling from fully-built vehicles to intelligent mobility solutions.

This is a important enterprise from Ashok Leyland and Cisco and they are confident the coaction will interrupt new land in the transit industry. The vision of the coaction is to heighten the value of their solutions by uniting the alone capablenesss, expertness and experience of Cisco and Ashok Leyland in the combined communicating solution that is enabled by the web as the nucleus platform. Cisco ‘s Smart+Connected Communities enterprise is designed to supply metropoliss and communities with smart and affiliated solutions for public-service corporations, safety and security, connected existent estate, transit, wellness attention, acquisition, athleticss locales and authorities services.

ASHOK LEYLAND – HYBUS

The new and latest in green engineering for urban mass transit is called the HYBUS. It is more eco-friendly than a normal CNG-powered coach, thanks to integrating of intercrossed engineering. Compared to an ordinary conventional coach powered by IC engine, HYBUS offers important fuel economy of 20-30 % which is dramatic. The HYBUS combines conventional CNG engine with electric propulsion system. The engine is operated at an optimum efficiency to drive the generator for bear downing on-board battery. The Lithium-Ion battery that powers the electrical thrust system provides the propulsion.

The HYBUS intelligently selects the most efficient runing manner to guarantee maximal fuel efficiency without compromising public presentation, comfort or rider safety. HYBUS has a host of commuter-friendly characteristics including extremist low entry at 390mm with kneeling option, noise-free rear engine, front and rear air suspensions and retractable incline for wheel-chair entry.

HYBUS besides incorporates some advanced prosaic safety constructs: sound and light qui vives while the coach is in gesture, a camera-assisted reversing assistance for the driver and dark clip highlighters near the tail visible radiations. The coach forepart has a fresh design to absorb impact on hit, which drastically reduces badness of hurt.

HYBUS is the greenest option with high public presentation, enhanced fuel efficiency and low nursery emanations and commuter-friendly characteristics acquiring inducted in the metropolis coachs are already assisting in cut downing traffic congestion and per capita decrease in fuel ingestion and C footmark. HYBUS heightens both the economic and ecological additions.

Plants of Ashok Leyland

Ashok Leyland has five major workss in India. They are: –

Mother works at ennore near Chennai

Three workss at hosur

Assembly works at alwar,

Assembly works at bhandara

State of the art installation at Pantnagar

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[ 2 ] TATA MOTORS

Tata motors are absolute leaders in the commercial vehicle section with a market portion of approximately 62 % . However, in the Indian coach industry, they are 2nd after Ashok Leyland. Tata Motors have workss in India at:

Jamshedpur – eastern India

Pune – western India

Lucknow and Pantnagar – northern India

Dharwad – Karnataka – western India

Apart from these workss, they have a new works coming up at Sanand, Gujarat – western India.

Tata motors have their Head quarters at Mumbai.

Tata Marco polo joint venture

Tata Motors and Marco Polo are in a 51-49 % joint venture in India. Marco Polo is a Brazilian company which is good known for its superior quality coachs. They have set up a province of the art installation in India at Dharwad in Karnataka for fabricating coachs in India. The Dharwad works will provide to India ‘s turning demand for world-class to the full built coachs for intra-city and inter-city transit with international criterion comfort, quality and safety.

The works will bring forth a comprehensive scope of coachs. The scope, to be marketed under the ‘Starbus ‘ and ‘Globus ‘ trade names, includes 16- to 54-seater criterion coachs, 18- and 45-seater luxury coachs, luxury managers and low-floor metropolis coachs. The works, spread over about 123 estates, will hold a capacity to bring forth 30,000 units a twelvemonth, to be achieved in stages. In 2009-10, the first full twelvemonth of operation, production can be up to 15,000 units. The joint venture has already invested about Rs. 200 crores. The works, at full capacity, will bring forth over 6,500 direct occupations.

Acquisition of Hispano

Tata motors had21 % interest in the Spanish elephantine Hispano boulder clay 2005. But last twelvemonth, Tata gained the staying 79 % and thereby gained control over Hispano. So, now Tata has full acquisition of Hispano. The Tata Hispano luxury coachs are being built at ACGL – Automobile Corporation of Goa ltd.

The Goa works has at this minute a capacity to fabricate 25 coachs a month, but investing programs to increase the production to 10,000 coachs per twelvemonth are carried out at this minute. Already 50 Tata-Hispano coachs have been built and delivered to clients in Karnataka, Andhra Pradesh and Maharashtra. Presently the human body is being manufactured by Tata Motors and the coach organic structure at the ACGL installation.

ACGL or Automobile Corporation of Goa Limited originally was a joint venture between Tata Motors and Economic Development Corporation of Goa Ltd. Tata chose Goa for doing bus organic structures because of the revenue enhancement grants available at that place. The first designs were provided by Fuji Heavy Industries, Japan, the proficient confederate and Japan ‘s largest coach organic structure maker at that clip. In 2007-08 ACGL A A manufactured and sold about 3,600 coachs, out of which 3,500 coachs were exported. During the current twelvemonth the company plans to fabricate about 6,000 coachs out of which 4,000 are expected to be for exports and the balance will be for the domestic market.

Tata Hybrid Buss

Like Ashok Leyland, Tata motors excessively are be aftering to establish intercrossed coachs running on both Diesel every bit good as electricity. There are be aftering to showcase their intercrossed coachs during the common wealth games is Delhi in October, 2010. Tata motors being the figure two company in the coach fabrication industry needs to maintain up with Ashok Leyland so as to keep their criterions.

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[ 3 ] VOLVO

VOLVO 9400 VOLVO 8400

Volvo is one of the major participants in the coach fabrication industry all over the universe. Volvo is considered to be the company that pioneered the construct of luxury coachs in India. Prior to Volvo, the chief purpose of coachs was mere transit. But after Volvo entered in to the Indian market, the chief purpose of the coach fabrication companies became client satisfaction and consumer comfort.

Volvo has its works at Hoskote in Karnataka. Currently, Volvo manufactures two major theoretical accounts on coachs in India. One of them is the Volvo 9400, which is for inter metropolis conveyance and the other theoretical account is the Volvo 8400, which is for intra metropolis conveyance.

The overall production of Volvo coachs in India has been invariably lifting, which is a testimony of their strong clasp over the Indian market. Volvo sold 200 coachs in 2007, 440 in 2008 and so 550 in 2009. In the twelvemonth 2010, Volvo India expects its gross revenues to lift by approximately 25 % , despite the fact that the overall Indian coach fabrication industry is turning at the rate of 10-15 % merely.

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[ 4 ] EICHER

Eicher is one of the major participants in the commercial vehicle section in the universe. In India, it has its presence as a joint venture with Volvo under the name of Volvo Eicher Commercial Limited [ VECV ] . They have set up a works at Pithampur in Madhya Pradesh. The company has programs to get down production by the 2nd half of this twelvemonth. The works programs to bring forth about 100 coachs a month and subsequently on increase the production as the full works is set up in stages. The company is in negotiations with assorted province authoritiess who would be necessitating coachs for the Jawaharlal Nehru National Urban Renewal Mission Scheme.

Soon the works has an installed capacity of bring forthing 4500-5000 coachs a month. But the current rate of production is about 3000 coachs a month. After the concluding stage of the works will be completed, the works is expected to hold a capacity of about 100,000 coachs per annum. The works is expected to be working on full capacity by 2015.

Volvo Eicher commercial vehicles are besides be aftering to get down bring forthing low floor coachs, as they are more preferable by the province authoritiess for the easiness of the riders. The production of low floor coachs is expected to get down by July, 2011.

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[ 5 ] SWARAJ MAZDA

Swaraj Mazda, which was established in the twelvemonth 1983, an India based car company, is owned by the Sumitomo Corporation of Japan and Punjab Tractors Limited of India, with a proficient coaction with Isuzu and Mazda of Japan. The company has its caput quarters in New Delhi. They have three workss in Punjab at Nabha, Ropar and Nawashahr.

In the coach fabrication industry, Swaraj Mazda is really popular in the mini coach section. They have been in this section for the last 27 old ages. However, they entered the luxury coach section in the month September, 2007. It was approximately two twelvemonth back, exactly on June 6, 2008, that Swaraj Mazda came out with its LT-134PR luxury coach powered by the Isuzu in Andhra Pradesh, which has been rather a success in Andhra Pradesh.

In order to force their gross revenues further, Swaraj Mazda has made a tie up with Canara bank to supply fiscal aid to those organisations or persons who are willing to purchase their coachs. Because of easiness of funding, the gross revenues of Swaraj Mazda coachs are expected to lift.

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[ 6 ] HINDUSTAN MOTORS

Hindustan motors have been a major company in the Indian car industry, particularly in the four Wheeler subdivision. Even today, the major income of the company continues to come from the four Wheeler subdivision. Established in the twelvemonth 1942, it is one of the innovators on the Indian car industry, chiefly in the four Wheeler section.

Hindustan motors have their caput quarters at Uttarpara in west Bengal. Hindustan motors have a good clasp over the mini coach section, particularly in the eastern parts of Indian. The company has yet non ventured into the luxury coach section but may come in this section in the close hereafter.

In 1942, Hindustan motors started their first works at Uttarpara in west Bengal for the production of rider vehicles. They started by bring forthing Ambassadors and subsequently on started bring forthing Contessa. They besides produced multi public-service corporation vehicles like trekkers, porter and Pushpak. Over the last six decennaries, they have set up three more major workss at Thiruvallur and Hosur in Tamil Nadu and one at Pithampur in Madhya Pradesh. The works at Thiruvallur in Tamil Nadu is in coaction with the Nipponese company Mitsubishi for the production of Lancer autos. The works at Pithampur is dedicated for the production of RTVs.

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[ 7 ] FORCE MOTORS

Force motor is one of the major coach manufacturers in India. They are head quartered in Pune. They have a works at Akurdi in Pune every bit good as a works at Pithampur in Madhya Pradesh. Force motors are chiefly known for their school coachs. They besides make other conveyance coachs in the ordinary and premium scope, but the company has yet non put their pes in the luxury coach section.

The major ground for non embarking in the luxury coach section can be attributed as the intense competition and the presence of Indian giants like Ashok Leyland and Tata every bit good as foreign entrants like Mercedes and Temsa. It would be idle for force motors to come in into the luxury coach section in a joint venture with some foreign elephantine which might desire to come in the of all time moneymaking Indian market.

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[ 8 ] MAHINDRA AND MAHINDRA

Mahindra and Mahindra is one of the major companies in the Indian car industry. They are chiefly known for their tractors in the rural subdivision of the state every bit good as for their other four Wheeler vehicles in the rider auto section like the Mahindra Logan.

However, presently they have no presence in the Indian coach industry. But, they are be aftering to come in into the Indian coach industry in a joint venture with American giant Navistar wherein Mahindra and Mahindra will keep 51 % of the portions. Mahindra and Mahindra have a works at Chakan in Pune which was antecedently utilized for the production of trucks. Now, this works will be utilized for the production of their coachs. The first batch is expected to hit the roads by 2011-12.

Mahindra and Mahindra have taken a immense measure frontward by come ining into the Indian coach industry. The overall market is expected to lift by about 10-15 % which makes their opportunities of wining even more. Mahindra and Mahindra have a clasp over the market and Navistar has the proficient expertness.

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[ 9 ] TEMSA

Temsa is one of the major car companies in Turkey. The company was established in the twelvemonth 1968 and since so it has been a major participant in the market. The company is now be aftering to come in in to the Indian market but without any joint venture programs. Most foreign companies enter the Indian market in a joint venture so that they need non develop a new market all over once more. But unlike others, the company is confident in doing a name for themselves.

They company is in negotiations with the Gujarat authorities to assist them get down their works in Gujarat. In return the company will bring forth employment which will be good to the province. Hence, this shall be a reciprocally good understanding between them.

Presently they have no presence whatsoever in the Indian market but they are confident that they will win based on their strong merchandise line and advanced technological cognition.

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[ 10 ] MERCEDES BENZ

Mercedes is a globally renowned company and they are known and admired for their high quality four Wheelers. It is a German based company and they are largely known for their far superior engineering. The company is so immense that they have developed a trade name name which stands for outstanding quality.

Mercedes has late entered into the Indian coach industry with a individual works in Pune. Their current production rate is 500 units per annum. Their production rate is expected to turn by at least 20 % this financial twelvemonth.

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[ 11 ] JCBL

JCBL is one of the most celebrated companies in India. They largely make bus human body for other major coach fabricating companies like Tata motors and Eicher. Their chief concern is to fabricate bus constituents like lock, roof hatch, etc for the major coach fabricating companies like Eicher, Tata motors, etc

However, they besides make their ain coachs.

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Analysis of the Indian Bus Industry – Porter ‘s Five Force Theory

[ 1 ] Threat of new entrants:

There is a changeless menace of new entrants. Foreign companies like Temsa and Mercedes have already entered into the market and therefore the large companies like Ashok Leyland and Tata motors have to be cautious in their attack so as to keep their place in the market.

[ 2 ] Threat of replacements:

The menace of replacements comes from the two Wheeler industry. Most of the people utilizing coachs as agencies of conveyance belong to the lower and in-between category of the society. Hence, the menace of replacements comes from the inexpensive two Wheelers like the scooters and 100-125 milliliter motorcycles. In order to forestall the menace from such replacements, the importance of public conveyance and thereby salvaging the environment must be promoted.

[ 3 ] Rivalry amongst bing participants:

There is intense competition amongst the bing participants. Most of the innovator Indian companies are come ining into joint ventures with foreign giants in order to derive proficient expertness and thereby attempt and set up their trade name into the market and derive competitory advantage.

[ 4 ] Dickering power of providers:

The bargaining power of providers is really less to none. Almost, all the coach fabrication companies are large companies and have more than one provider. Hence, the providers are in no place to deal.

[ 5 ] Dickering power of consumers:

A major part of the consumers are authoritiess. Hence, they have high bargaining powers. However, the private coach purchasers besides have dickering powers but their powers are less as compared to the authoritiess.

Analysis

Of all the above forces, the biggest hurdle to the coach fabrication companies are the menace from new entrants because this induces more competition and as a consequence the consumers have more picks which may take to cut down gross revenues and thereby may impact profitableness. The Indian coach industry has immense potency and hence there is adequate room for enlargement for one and all.

Phase II – The Indian Two-wheeler fabrication industry

India is the 2nd largest manufacturer of two-wheelers in the universe. In the last few old ages, the Indian two-wheeler industry has seen dramatic growing. The state stands following to China and Japan in footings of production and gross revenues severally. This shows India ‘s laterality in the two Wheeler industry.

Most Indians, particularly the younger coevalss prefers motorbikes instead than autos. Capturing a big portion in the two-wheeler industry, motorcycles and scooters cover a major section. Motorcycles are considered to be the favourite among the young person coevals, as they help in easy commuting.

Large assortment of two Wheelers is available in the market, which known for their latest engineering and enhanced milage. Indian motorcycles, scooters and mopeds represent manner and category for both work forces and adult females in India. Two-wheelers are the most popular and extremely sought out medium of conveyance in India due to traffic congestions.

The two-wheeler ( 2W ) industry has shown a healthy volume growing of 21.9 % ( y-o-y ) during the period April 2009-January 2010 contributed by a mix of favourable demand and supply drivers. While on one manus, a steady resurgence in economic activity, low excise responsibilities, low involvement rates and comparatively higher disposable incomes enabled the demand pull ; on the other manus, launch of new products/ discrepancies by makers, targeted selling spends and enlargement of client touch points ( notwithstanding crisp diminution in organized funding ) provided the complementary supply push. The above growing is important in the background of a negative volume growing of 5.0 % witnessed in 2007-08 and the instead hushed volume growing of 4.6 % seen in 2008-09. While the current growing rate may chair in the close term, the industry is expected to be on path for a healthy 9-11 % one-year growing over the average term, supported by a combination of favourable demand drivers in the domestic market and strong exports growing.

The 2W industry had reported double-digit growing rates for six back-to-back old ages till 2006-07 on the dorsum of lifting disposable incomes in Tier 2 and 3 metropoliss and in rural countries, and the easy handiness of consumer finance. However, 2007-08 saw a volume diminution following an addition in involvement rates and a sudden decrease in the handiness of finance. Within the 2W industry, the entry-segment of bikes was hit the hardest as fiscal establishments tightened their recognition norms due to comparatively weaker recognition profiles and the higher proportion of financed purchases in this section. Although the inadequacy of 2W finance remains a concern, the impact of the same has been mitigated by the handiness of finance from the unorganised sector and the turning portion of rural gross revenues, which happen mostly on hard currency footing. After the volume diminution in 2007-08, 2W gross revenues did demo a resurgence in the first half ( H1 ) of 2008-09, describing a volume growing of 13.2 % ( y-o-y ) . However, the economic meltdown that snowballed post-September 2008 bent consumer sentiment, doing a 7.4 % diminution in volumes in H2, 2008-09 versus H1, 2008-09 ( historically, the 2nd half of a financial twelvemonth histories for 52 % of full-year gross revenues ) .

The public presentation of the 2W industry in the current fiscal has been rather strong so far, although prolonging the impulse over the close term would hinge on the length of service of assorted demand/supply enablers, as some of these facilitating factors are expected to acquire moderated in the approaching months. Besides, the industry landscape besides appears to be germinating, as evident from the addition in the competitory strength and the displacement in Centre of growing with makers shifting merchandises and realining their portfolios, making merchandises to function new market sections, and puting greater accent on the rural and semi-urban markets to accomplish growing.

Cleavage of the two Wheeler industry

2W gross revenues in India are spread across three chief merchandise classs: bikes, scooters, and mopeds. While in the old decennary, scooters were the largest selling merchandise class, in the current one, consumer penchants appear to hold shifted resolutely in favour of bikes, which now account for over 80 % of entire 2W gross revenues in India. The rural market, a cardinal demand driver for the 2W industry as a whole, has been a important subscriber to the displacement in penchant towards bikes. With their longer wheel base and better milage, bikes enjoy penchant over scooters, particularly in country-sides, as they ride good over long distances and uneven roads, besides being perceived to hold a superior manner quotient. However, given the practicality of scooters, particularly in urban countries, their demand is likely to be sustained. As a merchandise class, scooters have besides undergone an image makeover, holding metamorphosed into vehicles with cleaner engineering, gearless options, and characteristics targeted at female commuters. In fact, while bike gross revenues volumes in 2007-08 and 2008-09 remained lower than the degrees achieved in 2006-07, scooter volumes have maintained consistent volume growing over the last two old ages.

Motorcycles

Motorcycle theoretical accounts with a spine monetary value of up to Rs. 40,000 comprise the “ entry-price section ” , which mostly consists of 100cc motorcycles and is presently dominated by the Cadmium Deluxe theoretical account of Hero Honda Motor Limited ( HHML ) and Platina of Bajaj Auto Limited ( BAL ) . The entry section has suffered volume diminutions during the last two to three old ages, being hit the worst by the tightening of recognition ; being a comparatively little ticket point, its clients normally belong to the most vulnerable subdivision economically within the existence of bike purchasers. The section ‘s profitableness for 2W makers has besides declined over this period, with volumes falling and monetary value competition acquiring more intense.

The Rs. 40-50,000 “ mid-price section ” is mostly concentrated around 100-135 milliliter theoretical accounts of assorted participants and history for majority of the volumes ( ~63 % ) in bikes. HHML remains a strong market leader in the mid-price section with its extremely successful Passion and Splendor theoretical accounts. BAL has Discover and Pulsar 135in this scope. The “ premium monetary value section ” ( Rs. 55,000 and above ) is presently dominated by BAL with its Pulsar scope of bikes. HHML has its Karizma in this scope but pulsar dominates the market.

The premium deluxe section of bikes in India ( & gt ; 250cc ) is presently dominated by Eicher Motor Limited ‘s Royal Enfield, which offers bikes in the 350cc and 500cc classs ; HMSI, Yamaha, and SMIPL are the other outstanding participants here. While Royal Enfield ‘s merchandises are in the class of patrol car motorcycles, the other participants ‘ merchandises are athleticss motorcycles. These machines are designed to present high power, come packed with engineering, and consequently command a premium monetary value. Many of the theoretical accounts launched earlier in the premium section had met merely limited success ; for case, Yamaha ‘s Enticer, Kawasaki-Bajaj ‘s Eliminator, and Kinetic ‘s Aquila showed promise in the initial months of their launch, but subsequently had to be discontinued. Given the low volume potency of these motorcycles, some of the other big participants in India like HHML and TVS have stayed away from this section.

Water scooters

Water scooters were ab initio thought of as inferior engineering having two shot engines and old styled theoretical accounts. But over the last decennary, the overall image of scooters has undergone a complete makeover. Now, they are a symbol manner with modern attractive expressions and besides enabled with characteristics like self start and cogwheel less scooters.

HMSI are the market leaders in the scooter section with a market portion of approximately 51 % . The major subscriber to this is the Honda activa along with others like aeronaut and dio. Following in line is TVS with its scooty pep+ and run with a market portion of approximately 22 % . Other participants in the scooter section were kinetic motor company and LML limited but failed to do a name for them and therefore quit the industry. Recently, even Bajaj India has announced that they were be aftering to discontinue the scooter section and dressed ore in the bike section. However, Mahindra and Mahindra have entered this section in 2008 and can present a menace to HMSI and TVS.

Mopeds

Mopeds are easy but certainly phasing out. Their current market portion in the two Wheeler section has fallen to less than 5 % , which is an indicant of their death. Kinetic motor is one of the chief companies bring forthing mopeds but they excessively are be aftering to phase the mopeds out.

Decision: –

There is a batch of possible in the two Wheeler industry. But presently there are no suited applications of adhesives and sealers in the two Wheeler industry. Now, it is up to the research and development section to come up with suited application in the two Wheeler section so that the immense market can be ventured into. The two Wheeler industry covers about 80 % of the Indian car industry which is why this subdivision of the industry can non be neglected for long.

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Phase III – Interaction with two Wheelers fabricating companies

The 3rd and the most of import stage of the undertaking were to interact with the two Wheeler fabrication companies. The two Wheeler fabrication industry is a immense potency market for Henkel Teroson India limited. Although there are no current applications of adhesives and sealers in the two Wheeler industry, but with the aid of intense research and development, if we are able to happen an application, so immense net incomes can be earned.

Therefore, the major undertaking assigned to me was to reach the major two Wheeler fabrication companies and seek and set up for meetings with them so as the allow our R & A ; D squad to interact with them and seek and happen an application so as the brand it profitable for both the parties.

The major companies approached by me during this period included: –

[ 1 ] Hero Honda

[ 2 ] Bajaj Auto limited

And a few local companies.

[ However, inside informations of the meetings are to be kept confidential as per company orders. ]

Decision: –

The overall experience gained during the preparation was really honoring. The overall market research helped me derive a batch of cognition about the Indian car industry. However, the last portion of the direction internship programme was the most ambitious and it has helped me a batch to hold first manus experience in the corporate universe. The last stage of the internship involved interacting with the two Wheeler fabrication companies.

The experience has helped me to better my communicating accomplishments every bit good as helped me derive assurance in talking to corporate functionaries every bit good as give presentations to my seniors and co-workers. It has helped me to develop my overall personality.

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