JK Tyre rolls out 10 millionth truck/bus radial tyre in India

One of the leading tyre manufacturers in India, JK Tyre and Industries Limited, part of the Rs.28000 crore JK Organisation, reached a historic milestone when it became the first Indian tyre maker to produce ten million truck/bus radial tyres. With one of India’s largest tyre capacities at 3.5 million truck/bus radials per annum, the home grown firm is the undisputed leader in this segment, according to a press note.

Singania

It was as historic occasion as the 10 millionth truck radial tyre came out of the mould at the company’s Vikrant plant in Mysuru. JK Tyre took over this plant from the Karnataka Government in the late 1990s and turned it around into a state-of-the-art plant with an investment of over Rs. 1200 crore.

 

Speaking during the milestone celebrations, Dr Raghupati Singhania, Chairman & Managing Director, JK Tyre said: “Starting in 1977, when we set up our first tyre plant in Rajasthan with 5 lac per annum capacity, we have come a long way and today JK Tyre has grown multifold. Over the years we have set up green field plants, expanded our capacities at regular intervals and even acquired plants across continents like the ones in Mexico, and recently 3 plants of Cavendish Industries in Uttarakhand, back home to keep pace with the increase in demand of tyres in the domestic as well as global markets.”

In the over 7.18 lakh (2015-16) commercial vehicle market in India, JK Tyre is a leader par excellence. It pioneered the radial technology in India, and was the first company to introduce Truck & Bus Radial tyres way back in 1999, and is today the largest producer in this category.

JK Tyre is truly a multi-national company with 12 plants globally with a future ready capacity of 350 lac tyres per annum. After the recent Re 2200 cr acquisition of Cavendish, JK Tyre has also entered the high growth 2-3 wheeler segment with its brand Challenger already hitting the market.

“Today we manufacture complete range of tyres – from a 3 kilo scooter tyre to the 3.7 tonnes Ultra Large OTR tyre. JK Tyre has completed the second phase of construction of its modern and pure radial plant at Chennai with a total investment of Rs. 1430 crore. The expansion was completed earlier this year. The plant makes truck radials and car radials and has a production capacity of 12 lakh TBRs and 45 lakh PCRs. The plant has a blueprint of scaling up to 2 million truck radials and 10 million PCRs. Also the capacity of the Mexico plants is under expansion. The capacity is expected to go up to 5 million tyres from the existing 3.5 million units per year”, Dr. Singania added.

Part of the JK Organisation, JK Tyre & Industries Ltd is a leading four-wheeler tyre manufacturer in India and amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments in the automobile industry. JK Tyre has global presence in 100 countries across six continents, backed by production support from 12 plants – 9 in India and 3 in Mexico. Currently, the capacity across all its plants is about 35 million tyres per annum. In April 2016 JK Tyre acquired Cavendish India Limited from Birla Tyres. While acquisition added three modern plants to its portfolio taking the total count to 12, it helped the tyre major foray into the two/three wheeler segment as well. Pioneers of radial technology, JK Tyre produced the first radial tyre in 1976 and is currently the market leader in Truck Bus Radial segment. With over three decades of technological innovation, JK Tyre offers tyre for entire range of passenger and commercial vehicles, starting from a 3 kg two-wheeler tyre to a 3.5 ton OTR tyre.

50 Datsun redi-GO cars delivered in Kollam in one day

The popularity of Datsun’s newest offering in India – the redi-GO urban-cross – continues to grow. Today, Datsun delivered 50 redi-GOs to customers in Kollam, a city in Kerala state, in a single day, according to a company statement. A special ceremony was held at the Pinnacle Nissan dealership to present the cars to their excited new owners. The keys to the shiny new cars were handed over by Mr. Vishvambaran, CI of Police, Kollam and Shabeen Muhamedali, Dealer Principal, Pinnacle Nissan.

Celebration of 50 Datsun redi-GO delivery

Datsun redi-GO, India’s first urban-cross, has made a splash in the entry-level car segment after its launch in early June this year. With its unique styling, outstanding performance, comprehensive safety package, and low cost of ownership, the Datsun redi-GO has been receiving accolades and turning heads across the country.

“I am delighted to see significant demand for the newly-launched Datsun redi-GO in the Kerala region. Delivering 50 redi-GO vehicles in one day to customers here in Kollam is a reflection of how well the brand is resonating with young India. We are delighted to deliver personal mobility to so many new car buyers,” said Arun Malhotra, Managing Director, Nissan Motor India Pvt. Ltd. “Our lively redi-GO urban-cross is loaded with several best-in-class features and offers a great value proposition for the young and ambitious who are ready to take the next step in their lives.”

Datsun redi-GO has also created huge digital buzz around the brand thanks to the innovative “Datsun redi-go app” which was introduced to keep customers and fans updated on the latest news about the car. So far 2.6 lakh users have downloaded the app.

Datsun redi-GO lined up for delivery

Datsun redi-GO is available across the 274 Nissan and Datsun sales & service touch-points in India. With 300 dealerships planned to be established throughout India in the near future, Datsun will be able cover up to 90 per cent of current and prospective customers in the country and provide them with easy and immediate access to sales and aftersales services.

India to witness strongest light vehicle sales growth in the coming years

The latest study by Roland Berger and Lazard, titled: Global Automotive Supplier Study 2016 has predicted that India will have the strongest light vehicle sales growth over the coming years. Apparently, the study also revealed several challenges that the automotive industry needs to look out for globally.

India-Light-Vehicles

While 2015 was another excellent year for automotive suppliers with global EBIT margins at a record high of 7.4%, volatility increased and global revenue growth slowed, according to the “Global Automotive Supplier Study 2016” from Roland Berger and Lazard. A potential market cool-down in 2016 and future technology changes remain at the top of the supplier CEO agenda.

As part of the study, performance indicators of more than 600 international suppliers were analysed to assess the current state as well as trends and challenges in the industry. The ongoing year-over-year improvement that the supplier industry has enjoyed since 2010 has largely come to a standstill. Revenue growth is the lowest in seven years, and several product segments have actually seen profit margins slightly below the 2014 level.

Felix Mogge, Partner at Roland Berger, said: “With profitability at record highs in 2015, international automotive suppliers are in good shape at first sight. But besides shrinking revenue growth they will have to cope with growing market volatility across the globe and have to face revolutionary changes in technology as well as new mobility concepts in the near future.”

Global vehicle production will grow only moderately

According to the study by Roland Berger and Lazard, global vehicle production is expected to grow only moderately at around 2% in 2016 and beyond. Christof Söndermann, Director at Lazard, said: “Suppliers will have to rely on other factors to stabilize or even drive up their margins and remain prepared for sudden macroeconomic turmoil that could lead to substantial short-term reductions in demand.” In a maturing Chinese market, double-digit growth rates will likely become a thing of the past. At the same time, a short-term recovery of Brazil and Russia is more than questionable, and the Brexit raises new uncertainties in Europe.

Industry facing most radical change in history

“Looking ahead, recent developments clearly indicate that the global automotive industry is facing the most radical change in its history,” says Söndermann. Disruptive trends in technology and completely new business models for automobile usage certainly promise opportunities for suppliers within the next ten years – but there is tremendous uncertainty as to exactly when and where those opportunities will unfold. The total component market value is expected to rise from EUR 700 billion in 2015 to more than EUR 850 billion in 2025, though profit pools will substantially shift between segments and in some cases even toward new industry players.

On the powertrain side, the development of e-mobility is gaining a lot of momentum. While technological hurdles prevail and a convincing business case for the end customer is nowhere close to accomplishment yet, tightened emission regulations by (supra-)national and local bodies will likely have a catalytic effect over the coming years.

“We expect the market for electrified vehicles to multiply by a factor of seven to ten over the next decade – leading to substantial growth potential for e-powertrain component suppliers while driving the traditional combustion engine segment more and more into a commodity corner,” said Mogge. For assisted/automated driving components, suppliers are facing a market that is expected to grow by a factor of five and reach a global volume of almost EUR 30 billion by 2025, but which also attracts fierce competition, e.g. from tech giants.

Increasing pressure and complexity for powertrain suppliers

With growing complexity and cost of the conventional powertrain and e-mobility not yet picking up, EBIT margins of powertrain suppliers have recently suffered and fallen below the industry average to 6.9 percent. In contrast, chassis suppliers benefited from the rise of assisted and automated driving functionalities. With an EBIT margin at 7.7 percent, their business ranks high among the different domains, second only to tire suppliers. There are not only significant differences by domain, but also by region. While Europe-based suppliers largely benefit from leading technology positions in many segments, China-based suppliers have seen a decline in margins in recent years due to sharply intensifying competition in their home market. Regardless of product focus or region, innovation is a key to success – but not necessarily the only one. “On average, product innovators outpace process specialists by roughly 2 percent when it comes to profitability,” explained Roland Berger Partner Thomas Schlick. However, the best performing process specialists earn margins that are comparable to those of the leading product innovators.

Portfolio management to increase in relevance

In order to be successful in this more volatile and rapidly changing environment, suppliers are required to speed up their flexibility and agility in developing and running their business. “It is no longer sufficient to just focus on organic growth in traditional areas,” confirms Söndermann. “Profit pools are moving toward new tech fields and suppliers will likely face fierce competition from new players from outside of the automotive supplier industry.” As such, active portfolio management is expected to further increase in relevance as suppliers have to redefine their core competencies and adapt to capture new technology. However, the complexity of acquisition-led growth will continue to be substantial due to intense competition for attractive targets and high price levels. “Thinking well ahead of the next vehicle generation, scenario planning and a more innovative approach to product development will be crucial,” said Schlick in summary.

Indian two-wheeler industry to witness technology transformation: ICRA

The Indian two-wheeler industry, the largest in the world, which is transitioning to tighter emission norms in an attempt to be on par with global emission standards, would see a large scale adoption of alternate technologies leading to a cost differential to the tune of 10-20 % of the cost of the vehicle, according to a report by ICRA, leading rating agency.

indian-2-wheeler

Currently, India follows BS-III emission norms for two-wheelers. From April 2016, all new two-wheeler models have started complying with BS-IV emission norms, and the existing models would comply with BS-IV emission norms from April 2017, on a pan-India basis.

As per the notification from the Ministry of Road Transport and Highways (MoRTH), all automobiles including two wheelers would need to migrate to BS VI emissions norms in 2020, bypassing BS V norms. It is these BS VI norms that would mandate the use of electronic fuel injection (EFI) systems in two-wheelers, to replace carburettors that would impact the cost structures for manufacturers.

subrata-ray-ICRA
Subrata Ray, Senior Group Vice President, ICRA Ltd said: “the cost impact of EFI systems on two-wheelers with existing levels of localisation is expected to be significant, in the region of 10 per cent to 20 per cent, for now. The costs however, are expected to come down subsequently as parts in the EFI system get localized.”

Though existing EFI equipped models in the market have a cost differential of around INR 6-9,000 with their carburettor equipped counterparts, the same would come down as parts in the EFI system get localized, and the ancillaries pass on benefits of economies of scale to the OEMs.

The ability of ancillaries to localize the entire EFI system by 2020 remains challenging; hence, cost impact on the vehicle would likely remain on the higher end when BS VI gets adopted in 2020. Subsequently, localization and corresponding cost reductions would be carried out in a phase wise manner, Mr Ray said.

While EFI systems have multiple benefits as compared to carburettors like lower emissions, easy cold starts and longer life for catcons, the high price differential between the two technologies has been constraining the adoption of EFI systems in 2Ws in India.

The challenges to migrate to BS VI norms are availability of BS VI compliant fuel, adapting the available technologies in line with operating conditions and requirements of the Indian market, cost differential on migration from carburettor to EFI system and vehicle modification cost.

“The major change in a 2W on migration to BS IV norms would be the inclusion of carbon canisters to control evaporative emissions. Other changes, like tightening on limits of different pollutants, would be met through optimization of the combustion process and increasing the volume and surface area of catalyst used in the catalytic convertor. The cost impact is not expected to be significant, in the range of 2-3% of the price of the vehicle”, says Mr Ray.

Narendra Modi addresses USIBC Leadership Summit in Washington DC

Highlighting the potential of the U.S.-India strategic and commercial partnership, India’s Prime Minister Narendra Modi addressed U.S.-India Business Council’s 41st Annual Leadership Summit on June 7, 2016 at Washington DC, according to an official statement.
Modi

Welcoming Prime Minister Modi to the Summit were business leaders of top American companies including: USIBC Chairman John Chambers (Executive Chairman, Cisco); Robert Ford (Abbott), James Taiclet (American Tower Corp); Marc Allen (Boeing); David Cordani (Cigna); Marillyn Hewson (Lockheed Martin); Ajay Banga (MasterCard); Indra Nooyi (PepsiCo); and David Dvorak (Zimmer Biomet).

At USIBC’s CEO Roundtable, Prime Minister Modi met CEOs from both the United States and India to get an update on the progress in the bilateral commercial relationship. Also joining the CEO Roundtable were the honorees for USIBC’s 2016 Global Leadership Awards: Jeff Bezos (CEO and Founder, Amazon) and Dilip Shanghvi (Founder and Managing Director, Sun Pharmaceuticals).

Speaking after the roundtable, USIBC Chairman John Chambers spoke on the substantial investment by USIBC members. “In September 2014, USIBC member companies indicated an investment number of $41 billion that was likely to be invested by members over a 2-3 year time period. Today, I am happy to announce that in less than two years, about 20 percent of USIBC member companies have already invested $28 billion. Over the next 2-3 years, we see this pace accelerating, again with about 20 percent of our member companies reporting, indicating that USIBC members are on track to invest an additional $45 billion, which is a conservative estimate. Given Prime Minister Modi’s track record towards implementing Digital India and key economic reforms, we are optimistic that this number will be dramatically exceeded, perhaps even doubled.”

USIBC President Mukesh Aghi said, “We are honored to have Prime Minister Modi address the Council’s 41st Anniversary Leadership Summit. Forty-five billion is a good starting point for American companies to invest in India and this number will only go up in the future. This will translate into increased technology transfers and job creation. We are excited to expand the potential opportunities attached to this relationship.”

USIBC Chairman John Chambers also delivered the State of the Council address. “Today we are witnessing a new phase in India’s growth story driven by the vision of Prime Minister Modi. I’ve had the opportunity to meet many government leaders around the world and I believe that Prime Minister Modi’s total approach in India – encompassing Digital India, skills, innovation and entrepreneurship – will ensure India remains the fastest growing economy over the next 5 years and provide inclusive growth, create new jobs and increase the standard of living for its citizens. Prime Minister Modi has rapidly become the model for not just the developing countries, but the entire world.”

During the Summit, USIBC also presented its Global Leadership Awards to Jeff Bezos, Founder and CEO of Amazon and Dilip Shanghvi, Founder and Managing Director of Sun Pharmaceuticals. Both were honored for their contributions and commitment to integrating India into the global economy.

“We have already created some 45,000 jobs in India and continue to see huge potential in the Indian economy,” said Jeff Bezos, Founder and CEO of Amazon.com. “Our Amazon.in team is surpassing even our most ambitious planned milestones, and I’m pleased to announce today that we’ll invest an additional US $3 billion on top of the US $2 billion that we announced in 2014, bringing our total investment in India to over US $5 billion.”

“At Sun Pharma we are focused on offering quality medicines to all our customers and patients worldwide. Under the dynamic leadership of Prime Minister Modi, we see an environment of technology-led innovation in India. It will enable us to bring innovative products meeting unmet medical needs of patients globally,” said Dilip Shanghvi, who also received the Padma Shri honor this year.

Additional investment announcements from the summit were as follows:

· Star India, a subsidiary of 21st Century Fox, India’s leading Media and Entertainment company, announced it will invest an additional $5 billion over the next three years. “We see huge potential in the Indian market and have been one of the largest foreign investors in India and the largest in the media and entertainment sector,” said Uday Shankar, Chairman and CEO of Star India.

· In support of Indian government’s renewable energy goals on an accelerated timeline, SunLink Corporation is partnering with domestic Indian companies with a deployment target of 1.4GW over the next 5 years, helping stimulate domestic Indian manufacturing and construction jobs.

About U.S.-India Business Council:

Formed in 1975 at the request of the U.S. and Indian governments, the U.S.-India Business Council is the premier business advocacy organization, comprised of 400 top-tier U.S. and Indian companies advancing U.S.-India commercial ties. USIBC is the largest bilateral trade association in the United States, with liaison presence in New York, Silicon Valley, and New Delhi.

Datsun redi-GO Urban Cross launched at a price of Rs.2.38 lakh

Aiming at redefining the entry-level car segment, Datsun today launched India’s first urban cross Datsun redi-GO, at a starting price of Rs.2,38,862. Modern, with zippy performance and stylish design, the Datsun redi-GO will be available in five variants at competitive prices, according to a company statement.

Datsun-Redi-Go

Speaking at the occasion of the launch, Guillaume Sicard, President – Nissan India Operations, said, “With Datsun redi-GO, we offer a unique urban-crossover styled in Japan, developed and manufactured in India. We are redefining conventional expectations and notions associated with the entry level car segment in India with a modern, fresh, stylish and accessible product. The Datsun redi-GO comes at a compelling price point and reaffirms Datsun philosophy of Dream, Access and Trust.”

Pricing Details:

 

Variant Ex-Showroom Price (Chennai)
D INR 2,38,862
A INR 2,82,550
T INR 3,09,014
T (O) INR 3,19,249
S INR 3,34,229

The Datsun redi-GO showcases a new Japanese design philosophy called YUKAN – which stands for brave and bold. It features ‘Tall-Boy’ styling and offers best-in-class ground clearance of 185 mm, extra roominess and excellent external visibility for the driver. The Datsun redi-GO will be available in five attractive body colour options – White, Silver, Grey, Ruby and Lime.

Continuing with the commitment to provide confidence behind the wheel, the new Datsun redi-GO comes with a comprehensive safety package – Datsun PRO-SAFE7. The Datsun PRO-SAFE7 embraces safety solutions like shortest braking distance, high strength body shell to absorb impacts, good visibility and wider view of the road, superior suspension system and excellent maneuverability, high bolster support while cornering, energy absorbing steering and driver airbag.

The new Datsun redi-GO delivers superior fuel economy of 25.17 kmpl. The all-new 0.8L three-cylinder i-SAT engine mated to a five-speed manual transmission helps it accelerate from 0-100 km/h in 15.9 seconds. It achieves a top speed of 140 km/h. Its new suspension system allows it to offer a good balance between handling and ride comfort.

The Datsun redi-GO comes with an attractive 2 year/unlimited kilometres standard warranty. It also comes with another exciting segment-first – an optional warranty for 2 or 3 years/unlimited kilometres with free roadside assistance. This gives redi-GO owners the option of up to 5 years/unlimited kilometres warranty coverage. The Datsun redi-GO also promises the lowest cost of ownership which is about 32 per cent lower than the competition. Convenience of roadside assistance is provided free of cost with both standard and extended warranties.

With its fresh and eye-catching styling, the Datsun redi-GO comes with a host of personalization options. This striking and dynamic line-up offers 50 accessories perfectly developed and aligned with the taste of young and aspirational Datsun redi-GO customers. The five personalized kit options – Urban, Style, Kool, Easy Kit- enhance style and Easy Kit – premium style add a dash of fun and impart head-turning looks to the Datsun redi-GO.

Datsun redi-GO will be supported by 274 Nissan and Datsun sales & service touchpoints in India starting today. With the projected 300 dealerships, Datsun will be able cover up to 90 per cent of current and prospective customers in the country and provide them with easy and immediate access to sales and aftersales services.

Datsun redi-GO has already created huge interest among the young and aspirational generation of India. Being India’s first urban cross, Datsun redi-GO’s appeal is reflected in the digital buzz it has created. The innovative ‘Datsun India App’, which was introduced to keep customers updated on the latest news about the car, has been downloaded by over 1.5 lakh users. The App, which has an option to book the car with ease, can be downloaded from the Google Play store.

Nissan is a global full-line vehicle manufacturer that sells more than 60 models under the Nissan, Infiniti and Datsun brands. In fiscal year 2015, the company sold more than 5.4 million vehicles globally, generating revenue of 12.19 trillion yen. Nissan engineers, manufactures and markets the world’s best-selling all-electric vehicle in history, the Nissan LEAF. Nissan’s global headquarters in Yokohama, Japan, manages operations in six regions: ASEAN & Oceania; Africa, Middle East & India; China; Europe; Latin America and North America. Nissan has a global workforce of 247,500, and has been partnered with French manufacturer Renault under the Renault-Nissan Alliance since March 1999.

SKF India, NAAM Foundation support drought affected farmers in Maharasthra

SKF India employees have joined hands with NAAM foundation to help drought affected farmers’ in Maharashtra. In a gesture of helping hand for community the employees decided to contribute the dividend income from their employees’ cooperative account for the cause. This amount was equally matched by the company raising a sum of Rs.7.75 lakh, according to a statement issued by SKF India.

SKF

Shrikant Savangikar (extreme right) handing over the cheque to Nana Patekar along with SKF India Credit Society members at Pune

Water conservation philosophy

The recent scarcity of water across the state of Maharashtra has had a devastating effect in the rural areas, especially the farmers’ community. This initiative by SKF of helping the farmers from the drought affected areas is in line with SKF India’s priority and philosophy of water conservation.

The cheque was handed over to veteran bollywood actor and Co-Founder of NAAM Foundation Nana Patekar, by Shrikant Savangikar, Director of Sustainability, Quality and Business Excellence, SKF India along with SKF employees’ credit society chairman Govind Shevate, Dyanoba Deokar, Secretary of the credit society and Sikander Ghodke, member of credit society among other SKF employees and members, the statement said.

Shishir Joshipura, Managing Director and Country Head, SKF India, said: “SKF believes that an opportunity exists at every stage in operational value chain to reduce the environmental impact. Doing more with less preserves the environment and precious resources for future generations. SKF has embarked on an ambitious program three years ago to make all its facilities water neutral by 2018. Our employees represent the true face of our organization and this initiative represents our philosophy of making a meaningful difference to the community we live in.

Shrikant Savangikar, Director of Sustainability, Quality and Business Excellence, SKF India added: “Deficient monsoons for two consecutive years have now affected a large number of farmers and the alarming conditions are driving them towards life threatening situations. NAAM foundation has done encouraging work under the aegis of known names and we are happy to be able to make a contribution to make a meaningful difference.”