1

CHAPTER 1

INTRODUCTION

1.1

INDUSTRY PROFILE
Automotive spare parts and components are a lesser known industry yet a big one.

In past few years the industry has grown enormously, even more than the automotive industry itself not only in the Indian but the global scenario.

The Indian auto component industry is one of India's sunrise industries with tremendous growth prospects. From a low-key supplier providing components to the domestic market alone, the industry has emerged as one of the key auto components centers in Asia and is today seen as a significant player in the global automotive supply chain. India is now a supplier of a range of high-value and critical automobile components to global auto makers such as eneral !otors, Toyota, Ford and "olkswagen, amongst others.

As per a report by the Automotive #omponent !anufacturers Association of India $A#!A%, the turnover of the auto component industry is being estimated at around &'( )*.+ billion in +,,*-),. The report states that -) per cent of the auto component industry is dominated by engine parts, )* per cent by drive transmission and steering parts, and )+ per cent each by suspension . braking parts and body . chassis, while e/uipment and electrical parts capture ), and * per cent, respectively.

The potential compounded annual growth rate $#A 0% of the auto component industry is estimated to be around )*.+ per cent in the period +,,*-),. 12ports from the auto component industry are estimated to be worth &'( -.+ billion in +,,*-),, according to the A#!A report. 1urope accounted for 3,.3 per cent of India's auto components e2ports in +,,*-),, followed by Asia with +-.4 per cent and 5orth America with ++.6 per cent. The industry has

2 witnessed a shift in the composition of e2ports over the years, with the original e/uipment manufacturer $71!8TI10 )% segment accounting for 4, per cent of e2ports in +,,*-),.

The share of the aftermarket segment in auto component e2ports stood at +, per cent in the same year. Investments in the auto component industry are estimated at &'( 9.3 billion in +,,*-),, according to A#!A.

DESTINATION INDIA
According to the Investment #ommission of India, India is among the most competitive manufacturers of auto components in the world. India is also becoming a global hub for research and development $0.:%.

#ompanies like :aimler #hrysler, ;osch, 'u<uki and =ohnson #ontrols have set up development centers in India. !any international auto-component ma>ors including :elphi, "isteon, ;osch and !eritor have set up operations in India. Auto manufacturers including !, Ford, Toyota, etc. as well as auto component manufacturers have set up International ?urchasing 7ffices $I?7s% in India to source their global operations.

Further, increased demand for the passenger vehicles in the country created positive impact for the auto component manufacturers. The component manufacturers registered @@ per cent growth on a year-on-year basis during the /uarter ending !arch +,),. The growth was attributed to the increasing demand of the original spare parts by the customer. 7n an overall basis, -, component makers saw rise in revenue in spite of global slowdown in the auto sector. !a>or players like ;osch, !otherson 'umi and Amtek Auto reported nearly @, per cent growth in topline, with double-digit surge in profit.

Figure 1.1: Auto component pro!uction p"it

IN#EST$ENTS

!agneti !arelli, the auto component maker of Fiat group, has forayed into the country's spare parts aftermarket by entering into a partnership with #arnation Auto, a multibrand car servicing facility. The company also plans to increase its revenue from India to around &'( 3+*.66 million by +,)@, and e2pects the country to grow faster compared to other global markets. Ayundai Bia, the car component subsidiary of Ayundai !otor #ompany, plans to set up an auto component facility at 5ellore, Andhra ?radesh with an investment of &'( +@*.9+ million. The facility is e2pected to be set up in two phases and would become operational by April +,)). 0ane roup, a #hennai based auto component manufacturer, is planning to invest &'( @6.)) million for augmenting capacity for meeting increasing demand during +,),-)). Ashok !inda roup, an auto component manufacturer plans to raise private

e/uity of around &'( +6.4 million for e2panding its business. erman automotive components company, Ballstabe . 'chneider, has established its Indian presence by signing a >oint venture $="% agreement with

4 Thane-based !ecnam ?roducts and !umbai-based :eshmukh 0ubber Borks ?vt Ctd. The world's largest automotive component manufacturer, ;osch, plans to invest &'( 3--.@ million in India over the ne2t three years. DIndia will be an important market for the company in the immediate future,D said ;ernd ;ohr, #hairman of the 'tuttgart-based ;osch Automative roup.

Tyre manufacturer, Apollo Tyres Ctd, is set to make #hennai its manufacturing and research and development $0.:% hub and is establishing a &'( 3--.6 million manufacturing facility, which is likely to see an additional investment of &'( )-,.,* million. The Tamil 5adu government has cleared the proposal of tyre manufacturer, =E Tyre . Industries Ctd, for setting up a new production facility in the state, which would attract around &'( -36 million in investment.

POLICY INITIATI#ES

The government has taken many initiatives to promote foreign direct investment $F:I% in the industry.

Automatic approval for foreign e/uity investment up to ),, per cent of manufacture of automobiles and components is permitted The automobile industry is delicensed Import of components is freely allowed

The !inistry of Aeavy Industries and ?ublic 1nterprises has envisaged the Automotive !ission ?lan +,,6-+,)6 to promote growth in the sector. It targets toF

Increase turnover to &'( )++ billion G &'( )@* billion by +,)6 from &'( -3 billion in +,,6 Increase e2port revenue to &'( -@ billion by +,)6

?rovide employment to additional +@ million people by +,)6 The automotive sector is e2pected to contribute ), per cent of the country's :? by +,)6

The auto component industry welcomed the government's announcement of e2cise duty rollback being limited to + per cent during the &nion ;udget +,),. The government also announced the increase of the deduction limit for 0esearch and :evelopment $0.:% in the sector from )@, per cent to +,, per cent.

LOO%IN& AHEAD

According to A#!A,

7verseas auto-component manufacturers, especially small and medium enterprises $'!1s% should invest more in capacity enhancements and reenfield manufacturing in India to meet growing domestic demand for auto-components Investments in Auto-IT sector is a high potential area To encourage new wave of partnerships at the Tier +8- level covering the entire automotive supply chain to address not only product technology, but also D?rocess TechnologyD

12change rate usedF ) &': H 36.-3 I50 $as on =une +,),%

AC$A

The Automotive #omponent !anufacturers Association of In!i' $A#!A% is

the nodal agency for the In!i'n Auto #omponent Industry. Its active involvement in trade promotion, technology up-gradation, /uality enhancement and collection and dissemination of information has made it a vital catalyst for this industry's development. It's other activities include participation in international trade fairs, sending trade delegations overseas and bringing out publications on various sub>ects related to the automotive industry.

A#!A is represented on a number of panels, committees and councils of the

overnment of In!i' through which it helps in the formulation of policies pertaining to the In!i'n 'utomoti(e in!u tr). For e2change of information and especially for co-operation in trade matters, A#!A has signed !emoranda of &nderstanding with its counterparts in &'A, #anada, &E, France, Italy, 'pain, =apan, 'outh Eorea, !alaysia, &<bekistan, ?akistan, Australia, 1gypt, Iran, Tunisia, 'outh Africa. Thailand . 'candinavia. A#!A represents over 39* companies, whose production forms a ma>ority of the total 'uto component output in the organi<ed sector. In the domestic market, they supply components to vehicle manufacturers, Tier-) suppliers, to state transport undertakings, defense establishments, and railways and even to the replacement market. A variety of components are being e2ported to 71!s and aftermarkets worldwide. The industry has been e2porting around )@I of its output and growing at the rate of -,I. In the year +,,--,3, industry has e2ported &'( ) billion versus &'( 96, million in year +,,+-+,,-.

1.*

CO$PANY PROFILE

ROOTS INDUSTRIES INDIA LTD +RIL, is a leading manufacturer of horns in India and the ))th largest horn manufacturing company in the world, Aead /uartered in #oimbatore, India.

077T' have been a dominant player in the manufacture of Aorns, #asting products, Industrial cleaning machines, ?recision products and other products like 1lectronic Aorns, ;rake 'hoes, ;rake ?ads, Aalogen Camps, 0elays, !elody !akers, 0oots ?arking 'ystem, ?iston . 0ings, Flashes, etc., uide

'ince its establishment in )*9,, 077T' had a vision and commitment to produce and deliver /uality products adhering to International standards. Bith a strong innovative base and commitment to /uality 077T' has occupied a key position in both International and domestic market as suppliers to leading 71!' and aftermarket.

0IC is the first Indian and first manufacturing company in the world to get I'7 8 T' )6*3* #ertification based on effective implementation of J' *,,, #ertification and ":A 6.) #ertification. 7ther certifications like 1 G #ertification from 1urope, I'7 )3,,) #ertification, and J) #ertification add crowns to it.

8 Their competitors includes ;osch, Cucas-T"', !inda Industries, Aarley . #o, "ibrant Auto components, 5ational 1lectric company, etc., Its customers include the massive automobile giants like !ercedes, Ford, !itsubishi, !ahindra . !ahindra, Toyota, Fiat, Tata !otors, ;a>a> Tempo Ctd, Einetic Aonda, T"', Ceyland, etc., 0egardless of the vehicle you drive - from a Tata !otors truck to a !ercedes car - chances are that you will be using a made-in-#oimbatore horn.

0oots Industries India Cimited, one of the eight companies under the 0oots group, has been making electric horns since it started operations in )*9, as American Auto 'ervice. ;esides a variety of horns, the 0oots group now manufactures various auto accessories, including halogen headlamps and fog lamps and parking and reversing sensors. Its clients include such big names as :aimler#hrysler, !itsubishi, !ahindra and !ahindra, Toyota, Tata !otors, T"' !otor #ompany and ?iaggio. 0oots products find their way to the &nited 'tates, 1urope, Best Asia and Africa.

Thriving on high-end research and diversification, the 0oots group also manufactures a range of non-automotive products, including cleaning e/uipment, castings and precision tools. The group is constantly innovating and developing original technology.

The technical collaboration with ;osch 'A for auto products in )**@ set the group on the path of sustained technical growth. It also has collaboration agreements with other erman companies for non-auto products - with Aako for multicleaners and Kinser for te2tile machinery. The 0oots group's obsession with technology is evident from the range of the state-of-the-art tools it uses for 0.: - solid modeling, hard prototyping, drafting and graphics. Its metrology laboratory is a comprehensive calibration-cum-consultancy centre that offers electrical, mechanical, pressure and vacuum calibration. It also offers speciali<ed #A:8#A! consultancy services for a range of products and industries.

1.-

THE FOUNDER:

An obsessive hobby went into the making of this self-made industrialist. ;orn in an agricultural family, young 0amasamy had a great interest in repairing automobiles. This led to his getting the master's degree in Automobile 1ngineering from Cincoln Technical Institute, &'A in )*6* and developing a uni/ue 0adiator #oolant 0ecovery 'ystem, which is today standard e/uipment in almost all vehicles manufactured by the advanced countries.

In )*9,, !r. 0amasamy promoted !8s. American Auto 'ervice, which was taken over in )**+ by 0oots Industries ?rivate Cimited, a company promoted by !r. 0amasamy.

This company entered into technical collaboration with 0obert ;osch, the world leaders in auto electrical to manufacture all the range of ;osch Aorns.

!r. 0amasamy had a very in/uisitive and innovative temperament. This led to his having many firsts in his distinguished career. 'ervo brakes were designed for the first time in India by !r. 0amasamy. Ae designed the first high fre/uency Bind Tone type horn which was smaller and lighter than conventional horns. ;esides all the other firsts, !r. 0amasamy introduced electronically controlled !usical Air Aorns for the first time in the Borld. The thirst for innovation and drive to move forward, led to the establishment of a die casting unit to meet the captive re/uirement of 077T'.

10 In )*49, !r. 0amasamy set up a full-fledged modern tool room e/uipped with the latest machines for the manufacture of precision tools and dies. Ae promoted 0oots !ulticlean Ctd., a >oint venture in Techno-financial collaboration with !8s. Aako Berke mbA, ermany to manufacture world class Industrial Floor #are and Floor #leaning 1/uipments.

0!#C is successfully spreading the concept of !echani<ed #leaning in India and also e2ports its products to various countries like Australia, ;ritain, 'ingapore, etc. ermany, =apan

!r. 0amasamy can very proudly claim that he is a self-made industrialist and in recognition of the same, he has been conferred the &dyog 'hree Award in the year )**,. Ae has also been awarded the &dyog 0attan Award by the Institute of 1conomic 'tudies in the year )**).

!r. 0amasamy has been awarded &dyog ?atra Award by the Institute of Trade and Industrial :evelopment :elhi in the year )**+ in recognition of being a self made industrialist and also his contribution to the economic development of the country along with ;haratiya &dyog =othi Award instituted by the Indian Institute of 1ntrepreneurship :evelopment, :elhi.

!r. 0amasamy has been conferred the "ikas 0attan Award and the award. Ae has been awarded &dyog 1ntrepreneurship #onfederation.

em of India

aurav Award by All India 7rgani<ation of

0oots Industries has been awarded the American International Juality Award in )**3 by Fulham eissler Associates, &'A. !r. E. 0amasamy was #hairman of the #onfederation of Indian Industry #oimbatore. ;esides this, he lends his leadership to a lot of other social organi<ations and his dynamic presence is a driving force behind all the group companies of 0oots.

11

1..

ROOTS &ROUP OF CO$PANIES:

The companies are vi<., 0oots Industries India Cimited 0oots Auto ?roducts ?rivate Cimited 0oots !ulticlean Cimited 0oots #ast ?rivate Cimited 0oots ?recision ?roducts 0oots !etrology Caboratory 0oots ?olycraft 0 E 5ature #ure home 'atchidananda =othi 5ikethan Integral Loga Institute 0oots Industries !alaysia 'dn, ;hd.

ROOTS INDUSTRIES INDIA LI$ITED

0oots Industries speciali<es in the manufacture of a wide range and line-up of automobile horns. 0oots is a leading supplier to all the ma>or vehicle manufacturers like Ford, :aimler #hrysler, !itsubishi Cancer, !ahindra . !ahindra, Toyota, Tata !otors, Fiat &no and 'iena, T1C#7, T"' !otor #ompany, Einetic Aonda, etc.

12 0oots Industries places a premium on original technology and innovation. 0oots' indigenous talent has kicked off a spree of growth unmatched in the history of automobile 71 manufacturers.

ROOTS AUTO PRODUCTS LI$ITED

0oots Auto ?roducts ?rivate Cimited $0A??C%, the largest supplier of Air Aorns in India caters to the needs of several 71!sF Ashok Ceyland, #aterpillar India and =#; 1scorts. 0oots Air Aorns also find a place of pride in ?assenger vehicles, Trucks, 1arth !oving e/uipment, !aterial Aandling e/uipment, etc. 0oots Air Aorns are e2ported to countries in 5orth America, 1urope, !iddle 1ast, Africa and 'AA0# region.

ROOTS $ULTICLEAN LI$ITED

The genesis of 0oots !ulticlean Ctd., $0!#C% is due to the vision of the promoter of 0oots group of company about the re/uirement of sophisticated cleaning e/uipment in the country following globali<ation of business and entry of !ulti 5ationals who have very high standard of housekeeping. 0!#C, situated in the suburbs of #oimbatore, is a =oint "enture with Aako Berke mbh . #o., ermany.

It commenced manufacture of cleaning e/uipment in early *,s at its modern factory located amidst natural greenery. 0!#C is the sole representative of Aako Berke mbh . #ompany's entire range of cleaning e/uipment for India and 'AA0# countries. To improvise and facilitate a better service to its customers, 0!#C has established 0egional offices in all !etros and a huge dealer network in bigger #ities and 'tates.

13

The superior /uality products and the added advantage of good after sales service has established the company as the country's largest manufacturer of floor cleaning e/uipment.

0!#C started the manufacture of mechani<ed cleaning e/uipment in the early )**,s through a techno-financial collaboration with Aako Berke, alliance became one of the most successful in the Indian industry. ermany. The

Today, in India, 0!#C is the largest manufacturer and e2porter of cleaning e/uipment. A state of the art manufacturing facility and a comprehensive marketing and After 'ales 'ervice network, enabled the company to deliver optimum solutions for customerMs cleaning needs. ?roducts from 0!#C are built around eco friendly concepts and comply with international /uality and safety norms

Today, 0!#C has grown into a leader in the Indian cleaning e/uipment manufacturing industry and has a significant market presence in the world market. Its domain e2pertise spans design, development and manufacture of cleaning e/uipment.

'trategic alliances have strengthened its presence and broadened the scope of its product offerings. 0!#C is also the e2clusive representative in India for several well known and speciali<ed manufacturers of cleaning e/uipment across the world.

The company derives its strength from an e2perienced talent repository, comprising e2perts in technology, product design and development, research, manufacturing and marketing.

14

ROOTS CAST PRI#ATE LI$ITED

0oots #ast ?vt. Ctd., $0#?C% $formerly known as Aruna Auto #astings ?rivate Cimited% was established in )*43 to meet the captive re/uirements of the 0oots group.

Bith its ever probing eye on the needs of the market, the company in the late 4,s e2panded its operations to manufacture Aigh ?ressure :ie #ast Aluminum and Kinc components to the e2acting needs of various customers in Automobile and Te2tile Industries with a high degree of Juality and ?erfection.

0#?C now has established itself as a ma>or player in the die cast component manufacturing thanks to the e2pertise built in the core activities like tool design, tool making and pressure die cast component manufacturing.

0#?C supplies machined castings and sub-assemblies as per customer re/uisitions.

ROOTS PRECISION PRODUCTS PRI#ATE LI$ITED

0oots ?recision ?roducts was established in )*49 to address the in-house tooling needs of the diverse industries in 0oots group. 7wing to continuous

15 improvement and investment into better resources, the company has become selfsufficient. It is catering to the needs of various industries. 0?? acts as a one-stop solution for tooling and precision machining.

ROOTS $ETEOROLO&Y LA/ORATORY

0oots' state-of-the-art !etrology Caboratory is a comprehensive calibration centre in 'outh India that offers mechanical, electrical, tor/ue, pressure and vacuum calibration instruments - all under one roof.

The laboratory is e/uipped with advanced facilities traceable to national 8 international standards. 0!TC is accredited by 5ational accreditation ;oard for Testing and #alibration laboratory as per I'78I1# )9,+@F +,,@ standards in the field of !echanical G :imensions, ?ressure8"acuum, . Force.

The laboratory offers on-site calibration facility and serves the industry to #alibrate surface table #oordinate measuring machine ?rofile pro>ector Toolmakers !icroscope ?ressure switches ?ressure gauges Temperature indicators Temperature sensors8scanners 1lectronic transmitters

16 ?ressure reducing valves 7vens, etc.

The e2pertise of the laboratory has attracted many renowned ?ublic and ?rivate 'ector undertakings.

ROOTS POLYCRAFT LI$ITED

0oots ?olycraft $?#% was established in )*44 to manufacture precision plastic components. It is e/uipped with latest microprocessor in>ection molding machines to maintain consistent process parameters.

7ver the years, ?olycraft has gained skills and uni/ue techni/ues to manufacture small and medium si<e components for Automotive, ?ump, Te2tile, and !edical Industries besides meeting the captive re/uirements of 0oots have helped augment its technological advances. roup. ;eing fully e/uipped to provide the best service, ?olycraft has satisfied customers who

The #ompany's commitment towards the customer is demonstrated with /uality products and service. This has resulted in continuous growth and product diversification. The process is closely monitored with proven techni/ues to obtain consistently good /uality parts.

R % NATURE CURE HO$E

17 R % N'ture Cure Home is the brainchild of :r.Erishnaswamy ounder.

The Aome was inaugurated and blessed by Ais Aoliness, 'ri 'wami 'atchidananda !ahara>, Logaville, "irginia, &'A. For the past +, years, 0E 5ature #ure Aome has treated thousands of people including eminent personalities from &'A, France, Italy, 'ingapore, The ulf #ountries, ermany and &E.

0 E 5ature #ure Aome was established way back in )*94 by :r. 0. Erishnaswamy ounder - a strong believer of 5aturopathy - with a high goal of promoting health in each and every individual through 5aturopathy and Loga.

'tarted with a capacity of >ust +, beds, 0 E 5ature #ure Aome has grown into a full-fledged centre with 6, beds, capable of meeting the ever-increasing health needs of the people. This new building was inaugurated by A. A. 'ri. 'wami 'atchidananda>i !ahara>, &.'.A., on 3th !arch )*43. This home is built in an ideal location, has ade/uate and well furnished accommodations like 'pecial Bard, 0egular and :elu2 #ottages A8c. for inpatient treatment. eneral Bard,

This 0E 5ature Aome, a leading 5ature #ure #entre in Tamil 5adu, has a history of over +3 years of treating suffering humanity, scientifically based on 5aturopathic principles and educating them in managing day to day health problems.

SACHIDANANDA 0OTHI NI%ETHAN

The school, S'tc1i!'n'n!' 0ot1i Ni2et1'n, is a !atriculation, 1nglish medium, co-educational, residential public school, secular in nature, which lays emphasis on our great Indian culture, high moral values and universal brotherhood.

18 It provides, in addition to high /uality education, e2cellent facilities for various #o-#urricular Activities, #omputer 1ducation, Art, Loga, 'wimming, Earate, !usic, :ance, Aam 0adio and various other club activities.

1.5

$ILESTONES

1345

?romotes American Auto 'ervice for manufacture of 1lectric Aorns. First to manufacture 'ervo ;rakes for Cight !otor "ehicles. 0oots Auto ?roducts ?rivate Cimited was established to manufacture Air Aorns. :ie #asting &nit commences commercial operations. ?olycraft, a unit for ?lastic In>ection !oulding was established. 0oots Industries ?rivate Cimited takes over 1lectric Aorn business. 0!#C enters into Techno-Financial collaboration with !8s. Aako Berke mbA, ermany. 0oots Industries ?rivate Cimited obtains the 5ational #ertification - I'I mark of /uality. ?roduction of floor cleaning e/uipment commences. 0oots Industries ?rivate Cimited wins American International Juality Award. ;ecomes the first horn manufacturer in Asia to obtain J' *,,, ;ecomes the first horn manufacturer in Asia to obtain ":A 6.) and the first in the world to win I'7 8 T' )6*3* The first to introduce digitally controlled air horns and low fre/uency, low decibel irritation free =umbo Air Aorns. 0oots Industries Ctd., Aorn :ivision is accredited with I'7 )3,,) F )**6 0oots Industries Ctd., upgraded its I'7 8 T' )6*3* from )*** version to +,,+ version 0oots Industries Cimited $0IC% opens its ),,I e2clusive 12port 7riented &nit at their Aorn :ivision, Thoppampatti, #oimbatore to cater the needs of Ford 5orth America. 0IC's 17& commences its supplies to Ford, 5orth America

134* 136. 1366 1335 133* 133* 133. 1333 *555 *555 *55*55-

*55.

*55.

19

*55.

0oots !ulticlean Cimited $0!#C% inaugurates its ),,I 17& ?lant at Eovilpalayam, #oimbatore

*55. *55.

0IC successfully launches its !alaysian ?lant The group company American Auto 'ervice is accredited with I'7 *,,) F +,,,

*557

0oots Industries Ctd., is certified with !' *,,,, a prere/uisite for J) award for Ford Automotive 7perations 'uppliers. Focus on 'ystems and ?rocesses

*557

0oots !etrology . Testing Caboratory has been accredited by 5ational Accreditation ;oard for testing . calibration in the field of !echanical G Cinear . Angular 0oots Industries Ctd., is awarded J) by Ford !otor #ompany 0oots Industries Ctd., Aorn :ivision upgraded its I'7 F )3,,) from )**6 version to +,,3 version

*557

*557

20

1.8

9UALITY POLICY : PROCESSES

They are committed to provide world-class products and services with due concern for the environment and safety of the society.

Root In!u trie In!i' Limite! ; 9u'"it) Po"ic)

This will be achieved through total employee involvement, technology up gradation, cost reduction and continual improvement in

Juality of the products and services Juality !anagement system #ompliance to J!' re/uirements Juality will reflect in everything they do and think

Juality in behaviour Juality in governance Juality in human relation J&ACITL - A5 ACC ?10"A'I"1 15TITL

0oots is committed to manufacture customer-centric and technology-driven products on par with international /uality standards. For e2ample, the horns manufactured undergo a rigorous life-cycle test and are sub>ected to an endurance

21 of over +,,,,,, cycles of performance while the industry norm re/uires only ),,,,,,.

Bhat's more, 0oots believes in a /uality culture that goes beyond >ust products. 1/ual emphasis is given to /uality in human relation and /uality in service. 0oots in its >ourney towards Total Juality !anagement have reached important milestonesF I'7 *,,) J' *,,, ":A 6.) I'78T' )6*3* and I'7 )3,,) #ertification.

At present it is in the process of obtaining 5A;C accreditation for our !etrology lab. The roup's TJ! policy has a well-integrated Juality #ircle

!ovement with active employee participation at various levels.

22

1.4

OR&ANI<ATIONAL STRUCTURE

Figure 1.* : Org'ni='tion'" tructure o> RIL EXECUTI E CHAIRMAN

PLANT MANAGEMENT

QUALITY MANAGEMENT

IT

FINANCE

HUMAN RESOURCE

SEC PM1 PM2 MKT ALE PM3 PM4

SEC QM1 QM2/3/4 QM4 EXE TECH

IT1/SAP IT2/DSO IT3/HARDW

FIN1/13-19 FIN11 FIN12

HR1 HR2 SO FO

SEC SECRETARY PM- PRODUCTION MANAGER MKT- MARKETING ALE APPLICATION ENGINEERING QM- QUALITY MANAGER

23 EXE TECH- EXECUTI E TECHNICAL ASSISTANT SO- SECURITY OFFICER FO- FRONT OFFICE

CHAPTER *

THE DEPART$ENTS

*.1

PRODUCTION DEPART$ENT

Figure *.1: Org'ni='tion'" c1'rt o> t1e Pro!uction Dep'rtment

PLANT MANAGEMENT

SECRETARY

PM 1

PM 2

MKT

ALE

PM3

PM4

ASSEM!LY PRESS SHOP

DESIGN PROCESS ENGINEERING

24 P"C PPC PURCHASE SU!-CONTRACT

PRODUCTION DEPART$ENT OF HORN DI#ISION OF ROOTS INDUSTRIES INDIA P#T LTD comprises of the following sections vi<.,
?ress shop #oil Binding Assembly :ivision

?OR%IN& PRINCIPLE OF A TYPICAL HORN:

A simple horn consists of the following components., Aousing with '#0 assembly Terminal base #oil ?oint plate ?oint holder Armature plate . Armature 0od :iaphragm Tone disc 8 Trumpet rill

25 !ounting bracket Turning 'crews asket

THE PRINCIPLE:

The A# supply to the terminal base lead to the flow of current through the coil via the contact points between the point plate and point plate holders which in turn induces an electro motive force inside the coil.

The magnetic field thus created pulls in the armature rod connected to the diaphragm until it breaks the contacts of the point plate and the point plate holder that breaks the flow of current thereby demagneti<ing the coil. This pushes the armature rod to its original position that strikes the diaphragm producing sound at certain desired fre/uency that is amplified by the tone disc.

CLASSIFICATIONS:

Aorns are of two ma>or categories, Air horns

26 1lectric horns $!anufactured in 077T'% 'crew type #rimp type 0ivet type

7n the basis of the tone type it may be., Aigh tone 'harp, focused and covers a long distance Cow tone Bide, blunt, less focused and covers a shorter distance

THOSE $ANUFACTURED /Y ROOTS:

Bindtone "ibrosonic #leartone ;osch 0ange 0oots *, !egasonic 'martone 'pider F'A+ 0 9,

27

THE PRESS SHOP:

The child parts for a typical type horn are manufactured inside the press shop. The parts include., ;lank Aousing with '#0 :iaphragm Tone disc Eeeper rings . rills

!ounting brackets ?oint holder . point plates

Figure *.*: Org'ni='tion'" tructure o> Pre

1op

28

OR&ANI<ATION STRUCTURE:
HEAD

ASSOCIATE SYSTEM # TOOLS MANAGEMENT

ASSOCIATE HEAD MANUFACTURING

ASSOCIATE MANUFACTURING

SHIFT ENGINEERS

RA? $ATERIALS:

The raw materials used in the preparation of the components are namely., #0#' $#old 0olled #arbon 'heet% &sed for Aousing, Eeeper 0ings, $If used powder coating is done% rills

Alu-Kinc Aousing, !ounting ;rackets, Tone disc . :iaphragm

29

'pring 'teel !ounting ;rackets, ?oint ?late, ?oint Aolder

$ACHINES:

Automatic ?ress &sed for Aousing alone

!echanical feeder ?ress &sed for ?oint plate, ?oint holder, ;lank, !ounting ;rackets

?ower ?ress &sed for Aousing, Tone disc, 'crews

Aydraulic ?ress &sed for :iaphragm

?neumatic ?ress &sed for Tone disc, ?iercing 7peration

PROCESSES:

HOUSIN& Raw Material H$%& G'()) C%**+,R/-)*&+0/ O%*.%* H$%)+,-

30

P+/&1+,L/**/&+,T&+22+,-

HOUSIN& @ SCR ASSE$/LY

SCR RI ETING Raw material (Housing) PLANISHING LANCING Output (housing+SCR)

TAPPING 5SU! CONTRACTORS6

P$34/& 1$(*+,-

TONE DISC !LANKING Raw Material LETTERING FORMING PIERCING POWDER COATING (Tone disc) Output

THE COIL ?INDIN& SECTION:

The processes include.,

31 ?oint plate and point holder riveting #oil winding onto the spool 0ooting and #utting #leaning

THE ASSE$/LIN& SECTION: PROCESSES:

). #7IC CAT#AI5

+. #7IC C7

I5

N ?7I5T ?CAT1 N A1AT #7:I5

TA10!AC ;A'1 A''1!;CL

-. ?7I5T A7C:10 A''1!;CL . TA10!AC ;A'1 0I"1TI5 N BA'A10

3. :IA?A0A ! A''1!;CL A5: TI AT15I5

@. ?01 #0I!?I5

. FI5AC #0I!?I5

6. AI0

A? !1A'&0I5

. A:=&'TI5

9. T10!I5AC #7551#T70 ;15:I5 ;0A#E1T A''1!;CL

. !7&5TI5

32 4. ?7B10 '&??CL, A705 T&5I5 . T1'TI5

*. T&5I5

0A5 1 !1A'&0I5

. '1ACA5T :I'?15'I5

),. J&ACITL A''&0A5#1 BITA ),,I I5'?1#TI75

)). 'TI#E10I5

A5: :1'?AT#A

*.*

$AR%ETIN& DEPART$ENT

$'r2eting is essentially about marshalling the resources of an organi<ation so that they meet the changing needs of customers on whom the organi<ation depends. As a verb, marketing is all about how an organi<ation addresses its markets.

Figure *.- : C"'

i>ic'tion o> $'r2et

33

M R!"T

REPLACEMENT

ORIGINAL EQUIPMENT

EXPORT MARKET

REPLACE$ENT $AR%ET

It is a 'econdary market that supplies accessories, spare parts, second-hand e/uipment, and other goods and services used in repair and maintenance. 'ome aftermarkets, such as those for automobile add-ons, parts, tires, wheels, are very large. The aftermarket or replacement market encompasses parts for replacement, collision, appearance and performance, including electric propulsion. The aftermarket provides a wide variety of parts of varying /ualities and prices for nearly all vehicle makes and models on the road. #onsumers have the option of repairing their vehicles themselves $known as the doit-yourself segment% or can take the vehicle to a professional repair facility $known as the doit-for me segment%.

ORI&INAL E9UIP$ENT $ANUFACTURER $AR%ET

An origin'" eAuipment m'nu>'cturer, or OE$, manufactures products or components that are purchased by a company and retailed under the purchasing company's brand name. 71! refers to the company that originally manufactured the product.

34 Bhen referring to automotive parts, 71! designates a replacement part made by the manufacturer of the original part.

71! may also refer to a company that purchase, for use in its own products, a component made by a second company.

EBPORT $AR%ET

12port marketing is a process of finding buyers8importers and approaches them with the e2pectation of e2port orders with a well-planned strategic marketing process followed and performed well to get success in International !arket.

ANNUAL PRO0ECTION PLAN:

It is a plan for production, staffing, inventory, etc. It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. This plan /uantifies significant processes, parts, and other resources in order to optimi<e production, to identify bottlenecks, and to anticipate needs and completed goods. 'ince an !?' drives much factory activity, its accuracy and viability dramatically affect profitability.

It is necessary for organi<ations to synchroni<e their operations and become more efficient. An effective plan ultimately willF

ive production, planning, purchasing, and management the information to plan and control manufacturing

35

Tie overall business planning and forecasting to detail operation. 1nable marketing to make legitimate delivery commitments to warehouses and customers

Increase the efficiency and accuracy of a company's manufacturing

5ormally, ?revious off TakeN :emand forecastH A55&AC ?CA5 to monthly to weekly and day plan will be made and as per production takes place

DESPATCH DOCU$ENTATION

1. ?ackaging list cum delivery #helan

P'c2ing "i t- The e2porter or his8her agent---the customs broker or the freight forwarder---reserves the shipping space based on the gross weight or the measurement shown in the packing list. #ustoms uses the packing list as a check-list to verify the outgoing cargo $in e2porting% and the incoming cargo $in importing%. The importer uses the packing list to inventory the incoming consignment.

36

De"i(er) C1e"'n is a proforma invoice that accompanies at the time of delivery which contains the !aterials and /uantity of goods dispatched.

*. Transport invoice, 0oad permit, central 12cise gate pass

-. #ommercial invoice

A commerci'" in(oice is a form identifying the seller and buyer of goods or services, identifying numbers Oinvoice numberP date, shipping date, mode of transport, port of entry, delivery and payment terms, and a complete listing and description of the goods or services sold including, /uantities, prices, discounts. The commercial invoice form is considered the most important document in international trade, because merchandise is not allowed to clear customs at the destination without one.

That is even true if the goods are samples and have no commercial value.

This document is usually the one that all the service providers first look to for information about your shipment. It is important to prepare the commercial invoice as clearly and accurately as possible to avoid problems with your shipment.

37 The #ommercial Invoice is a #ustoms re/uirement, not a transportation re/uirement. Bhen someone is engaged in international trade, #ustoms re/uires a #ommercial Invoice form.

*.-

PURCHASE DEPART$ENT
7n receipt of the plan made in by the production department the purchase

department would ac/uire the necessary raw materials to the production process. It comprises of the following steps. Figure *..: F"oC o> proce e in t1e Purc1' e Dep'rtment

;ICC 7F !AT10IAC

38

"15:70

1"AC&ATI75

T1A! 7F 15 I5110'

0I'1 15J&I0L

1"AC&ATI75

?&0#AA'1 70:10

PROCEDURE USED:

A/C An'") i o o o A- items are normally less in /uantity but of high value ;- items somewhere between A and # #- items are of less value but of more /uantity

39 Supp"ier o +@, vendors totally supplying about 3,,, components in @ product range.

R'ting t1e upp"ier o Juality inspector checks the materials and confirms its compliance to the re/uired standards o o #odes are given to products that are accepted or re>ected 0ating is done every month and supplier will be retained or changed as per the rated results

*.. STORES DEPART$ENT

IDENTIFICATION

Tags are provided to the products in the department to both the raw materials and the finished goods. It includes.,

;C&1 TA - waiting for inspection

40 0115 TA - accepted L1CC7B TA - conditionally accepted 01: TA - re>ected

HANDLIN& $ATERIALS AND E9UIP$ENTS

T07CC1L' ?CA'TI# :0&!' ?CA'TI# T0AL' !A'T10 #A0T75 ;7Q "10TI#AC TL?1 #A0T75 ;7Q

*.7

INFOR$ATION TECHNOLO&Y

Figure *.7: Org'ni='tion'" c1'rt o> In>orm'tion Tec1no"og)

41

INFORMATION TECHNOLOGY

IT1/ SAP

IT2 / DSO

IT3 / HW

SAP MM

SAP ADMM

SAP PP

S/W PRO7ECTS

SAP SD

0oots industries being integrated by 'A? while other companies under the roots group integrated by an in-house developed software 0I!' $0oots Integrated !anagement 'ystem%.

RIL D SAP:

#omprises of three defined servers namely.,

42 De(e"opment er(er; Bhere the consultants do all customi<ation 8 configuration App"ic'tion configuration er(er; Bhere the consultants do all customi<ation 8

Pro!uction : !'t'E' e tasks.

er(er; Bhere users will do their routine

$ODULES

$$; $'teri'" $'n'gement

A single material or article master record creation in 'A? typically involves multiple people entering at least ),, fields in over +, different screens. At most companies, this process is manualGlabor intensive and error-prone.

The 'A? !aterials !anagement module includes the following common usesF 5ew material creation G all views including e2tending materials to different plants and sales organi<ations.

Article masters for retail and apparel industry solutions ;ill of materials, including variant configuration

43 !aterial master . ;7! changes - characteristics, !0? controller, prices, cost, components, storage location, etc. !aterial movement . inventory tracking oods receipts and material document postings

PP ; Pro!uction P"'nning The ?roduction ?lanning module of 'A? takes care of !aster data needed like ;ill 7f !aterials, 0outings and Bork #enters and stores it in one separate component.

"arious stages of the planning system can be planned by using components like

'ales and 7peration ?lanning Cong Term ?lanning :emand !anagement !aterials 0e/uirement ?lanning

SD; S'"e F Di triEution

The 'A? 'ales . :istribution $':% module is one of the most important 'A? modules and is the key module in the 7rder-to#ash business process.In particular, many 'A? customers find that automating data loading in the following processes leads to large efficienciesF

44

5ew customer master creation #ustomer functions ?ricing conditions creation and changes including customer-specific pricing 'ales orders and credit memos creation, including those received directly from customers, distributors, resellers, or sales orders collected in other systems #hanges in sales orders8/uotes G changes in pricing, delivery dates, /uantities, items, location #ontracts and rebate agreement creations master changes G credit terms, block8unblock status, address, sales hierarchy, partner

9$; 9u'"it) $'n'gement

The 'A? J! module supports tasks associated with /uality planning, /uality inspection and /uality control throughout an enterprise. It sets the specifications for /uality and standard testing procedures, controls the creation of /uality certificates and manages notifications related to /uality. It also stores the /uality data for raw materials, goods-in-process and finished goods.

The companies can use the #omplaint !anagement for achieving their /uality goals. This process provides the notification and analysis of non-conformities, defects, and failures that are related to products, processes, or services.

45 'A? 10? supports problem management with its very fle2ible and powerful /uality notification tool.

It is possible to record /uality notifications using variable templates depending on the scenario. 5otifications are a fle2ible tool for recording, processing, and monitoring all unplanned events in an organi<ation, e.g. complaints against vendors, customer complaints, or internal problems.

FI : CO DFin'nce F Contro"

Accounting teams usually have a lot of data that is either created in 12cel or is received in 12cel. !anual entry of this data is e2pensive and delays month-end closings. Also, in the 'A? FI8#7 module, some of the 'A? data entry screens are very cumbersome

:ata entry in 12cel can easily be synchroni<ed with the 'A? system, significantly improving the efficiency and productivity of accounting and finance operations. Typical benefits areF

=ournal

entries,

Accounts

?ayables,

Accounts

0eceivables parking or posting, including those using ?rofitability Analysis ?osting invoices received from e2ternal vendors. Invoice-receipt with --way matching

46 0econciliation and entry of ?-card statements Incoming payments . other bank information #ustomer invoices Fi2ed assets creation and maintenance Ad-hoc reporting of A8? or A80 line item data.

;udgeting and other planning transactions

RI$S: An in-house developed 10?. Front 1nd G A'? $ Active 'erver ?ages% ;ack 1nd G 'JC 'erver.

*.8

FINANCE DEPART$ENT

The finance department is the department or committee which manages the money used in an organi<ation.

FINANCE FUNCTIONS

;udget preparation ;udget administration #ost allocation Accounts payable ?ayroll Fringe benefits rants administration

47

!onitoring service providers Technical assistance to service providers #ontract administration ;illing ?roperty inventory eneral accounting records Fi2ed assets records #ustody of funds :istribution of pass-through funds #ash flow Investments :ebt administration 0isk management Internal financial reports 12ternal financial reports 'tatutory reports Ta2 reports

THE /UD&ET

It is duty of finance department of company to make the budget before actual providing money to any department. It will be helpful to fulfill each department with minimum cost. Finance department can take the past records from respective department. It will be useful for making better budget. Annual business plan $A;?% is

48 made in the month of =anuary- February in comparison with the previous year records and annual pro>ection plan made by the departments.

FINANCIAL $ANA&E$ENT

In this function finance department gets money from capital market at very low risk and cost. Finance department analy<es all the resources of funds and create a good financial structure of company. In this structure, finance department analy<e whether it will decrease the overall cost of capital on Average basis or not.

$ANA&E$ENT OF IN#EST$ENTS OF CO$PANY

After making financial structure, finance department invests debenture holders and shareholders money in best pro>ects for getting highest return on investment. For this finance department has to take investment decision. These investment decisions can be taken with the help of capital budgeting and investment analysis techni/ues.

$ANA&E$ENT OF TABES

!anagement of ta2es is also the function of finance or finance department. Ta2es may be direct or indirect. Finance department continue watches the amendments and updates in ta2 laws and also create good corporate relation with government by paying return of corporate ta2 on the time.

49

$ANA&E$ENT OF FINANCIAL RIS%S

Finance department takes many measures for managing the financial risks of company. For reducing loss of fund due to happening li/uidity, solvency or financial disaster, finance department makes a good plan and also takes the help of debt collectors, insurance companies and other rating agencies for reducing financial risk

STATUTORY PAY$ENTS

'ales ta2, 12cise duty, T:'., are calculated and paid in time.

/OARD OF DIRECTORS:
!r. E.0amasamy !r. 5. omathinayagam !r. Eavidasan !r. #.".0.?anikar !r. ;.?.0angasamy !r. 0."arun Earthikeyan !rs.0.Lokanayaki !r.E.'aravanasundaram

EBECUTI#E CHAIR$AN F $D:

!r.E.0amasamy

50

#ICE PRESIDENT;FINANCE F CO$PANY SECRETARY:

!r.E.0avi

AUDITORS:
!8s. 'ubramanian "asudev . #o #hartered Accountants, 'alem.

/AN%ERS:
';I #iti ;ank ?un>ab 5ational ;ank

RE&ISTERED OFFICE:
0.E. Industrial 1stste

anapathy, #oimbatore-63),,6

FACTORIES:
Aigh ?recision 1ngineering :ivision anapathy, #oimbatore G 63),,6

Aorn :ivision Thoppampatti, #oimbatore-63),)9

RECORDS $AINTAINED

51 #A'A ;77E ?1TTL #A'A;77E ;ICC' 01#1I"A;C1 ;77E ?&0#AA'1 ;77E ?&0#AA'1 01T&05 ;77E 'AC1' ;77E 'AC1' 01T&05 ;77E ;ICC' ?ALA;C1 ;77E ?A'' ;77E

PERFOR$ANCE OF THE CO$PANY

Turnover $+,,4-,*%F 0s. *6,*.)4 Cakhs

*.4

EN&INEERIN& RESEARCH CENTRE

52

The 1ngineering 0esearch #entre $10#% is involved in the continuous improvement and enhancement of design to increase performance and reliability. The 10# functioning under three distinct heads cater to the needs of 0oots Industries, 0oots !ulticlean and 0oots Auto ?roducts.

Though there is a three-pronged operational ethos, the 10# is integrated and meshed seamlessly with one single ob>ectiveF that of design research and performance monitoring. Through e2tensive product engineering, the 10# cell of 077T' achieves the followingF

:esigning and developing new products with customer focus. #onducting re/uired tests to ensure product reliability. Initiating necessary corrective and preventive action for ensuring peak performance

Fine-tuning products with available components to satisfy customer re/uirements.

The 10# consists of the best talent that includes engineering graduates, ITI brains and design engineers. The team works with top-notch tools like

?roe+,,,i+ - for solid modeling Auto#A: +,,, - for :rafting #orel:raw " 4., - for raphical Applications

53

THE APPLICATION EN&INEERIN&

This department plays a ma>or role in the development of new designs of products to the desire of the 7riginal 1/uipment !anufacturers

These people initially en/uire the needs of the 71! and develop a prototype with the process engineering and product engineering of the 10#.

Then the developed product is initiated for approval from 71!. 7nce cleared, pilot batch production takes place, with the successful implementation of the pilot batchR the production team goes for the mass production.

54

*.6

HU$AN RESOURCE DEPART$ENT

PERSONAL CULTURE

The management has been encouraging and promoting a very informal culture, D?ersonal touchD, sense of belonging, enabling employees to become involved and contribute to the success of the company. The top management also conscientiously inculcates values in the people.

?OR% EN#IRON$ENT

'pecial and conscious efforts are directed towards housekeeping of the highest order. 0enovation and moderni<ation of office premises and office support systems are carried out on an ongoing basis.

TRAININ&

0oots believe in systematic training for employees at all levels. As a part of the 7rgani<ational :evelopment efforts, training programs are being conducted in-house, for employees at all levels. In addition, staffs are also sponsored for need based training programs at leading !anagement :evelopment Institutes.

55

TOTAL 9UALITY $ANA&E$ENT

#ustomer Focus is not merely a bu<<word but it has become an important factor of every day work and has got internali<ed into the work environment. There is an e/ual emphasis on internal customer focus leading to greater team efforts and better crossfunctional relationship.

9UALITY CIRCLE $O#E$ENT

To ensure worker participation and team work on the shop-floor, 0oots Industries India Cimited has a very effective Juality #ircle !ovement in the organi<ation. As on today 0oots Industries Cimited has - operating Juality #ircles having +3 members and some of them have won awards at different conventions and competitions.

Through interaction with workmen in these sessions, a process of +-way communication has been initiated and valuable feedback has been received on worker feelings, perception, problems and attitudes. 'imultaneously management has communicated the problems faced by them and the plans to overcome these problems.

&OOD $ORNIN& ASSE$/LY

The management aims in operator's mental . physical fitness and it is ensured through the !A.The operators and shift supervisor, assemble before the I shift beginning and do occupation of fitness e2ercise, discuss about the Juality 'afety . ?roduction aspects of the previous shifts and take Juality 8 'afety oath.

56 Through interaction with workmen in these sessions, a process of + way communications has been initiated and valuable feedback has been received on worker feelings, perception, problems and attitudes. 'imultaneously management has communicated the problems faced by them and the plans to overcome these problems.

0oots have a strong people-oriented work culture that can be seen and felt across all its member concerns. Bhether they work in group or in isolation, their effort is well appreciated and achievements well rewarded.

They have a sense of belonging and they revel in an environment of openness and trust. #ross-functional teams function as one seamless whole and foster the true spirit of teamwork.

0oots as a learning organi<ation systematically train its employees at all levels. #onducted in-house, the training programmes e/uip them to meet new challenges head on. 1mployees are encouraged to voice their feelings, ideas and opinions. There is a successful suggestion scheme in operation and best suggestions are rewarded.

Casting relationship will evolve only when people know that their work is valued and that they contribute meaningfully to the growth of the organi<ation. At 0oots, people across the group companies, through interactions at workshops and seminars, get to know each other individually, share their common e2periences and learn something about life.

CONCLUSION

57

The main ob>ective of the organi<ational study, to understand the organi<ationMs functions and activities is vital for a management student.

The training at 0oots Industries India Cimited was fruitful in gaining a practical hand on e2perience understanding the functions of the organi<ation. The practical e2posure provided an insight into the ma>or accomplishments to be made in the field of business.

;eing honored and privileged in completing the program in the organi<ation, the e2perience would be of great part in all my future endeavors.