MIRA
INFORM REPORT
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Report Date : |
2nd
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
BOSCH
CHASSIS SYSTEMS INDIA LIMITED |
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Formerly Known As : |
KALYANI
BRAKES LIMITED |
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Registered Office : |
Aurora Towers, 4th Floor, 9, Moledina Road, Pune – 411 001,
Maharashtra, INDIA |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
25th
May 1982 |
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Com. Reg. No.: |
11-27224 |
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CIN No.: [Company
Identification No.] |
L34300PN1982PLC027224 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKK00678G
/ PNEK00047F |
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PAN No.: [Permanent
Account No.] |
AAACK7312E |
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Legal Form : |
It is
a public limited liability company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
The
company is engaged in manufacturing and selling of hydraulic and air brake
components. It also acts as traders
of brake fluid, hydraulic brake components including rear brake assembly,
tandem master cylinder, front caliper assembly and rotor discs. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution
needed for credit transaction. It has above average (strong) capability for
payment of interest and principal sums |
Large |
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Maximum Credit Limit : |
USD
3750000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having fine track. Available information
indicates high financial responsibility of the company. Fundamentals are strong
and healthy. Trade relations are fair. Payments are correct and as per
commitments. The
company can be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long-run. |
LOCATIONS
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Registered Office : |
Aurora Towers, 4th Floor, 9, Moledina Road, Pune – 411 001,
Maharashtra, INDIA |
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Tel. No.: |
91-20-26131021 / 23 / 24 / 25 |
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Fax No.: |
91-20-26133704 |
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E-Mail : |
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Website : |
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Factory
1 : |
Off NH
6, Bambhori, Taluka Erandol, Dist. Jalgaon – 425 001, Maharashtra |
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Factory
2 : |
Nanekarwadl (Chakan) Dist. Pune 410 501
(Maharashtra) |
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Factory
3 : |
Plot
No. 9, Sector 3, Ch. Devilal Imt Manesar, Gurgaon, Haryana, India |
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Tel.
No.: |
91-124-2123569
/ 2290528 / 3090358 |
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Fax
No.: |
91-124-2123540
/ 2290638 |
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E-Mail
: |
DIRECTORS
|
Name : |
B N Kalyani |
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Designation : |
Chairman |
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Name : |
Albert Hierorttmus |
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Designation : |
Director |
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Name : |
V K Vfswcmathan |
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Designation : |
Director |
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Name : |
Johannes Schaefer |
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Designation : |
Director |
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Name : |
Hans-Michael Huber |
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Designation : |
Director |
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Name : |
Sanjay S. Vaidya |
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Designation : |
Director |
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Name : |
Satish Sekhri |
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Designation : |
Managing Director |
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Age: |
51 years |
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Qualification: |
B.E. (Mech.), M.B.A. |
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Date
of Joining: |
04.08.1994 |
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Previous
Employment: |
Vice President – (Engg. Division) Escorts
Limited (3 ½ years) |
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Name : |
Mandar Ratnaparkh |
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Designation : |
Company Secretary |
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MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters |
8317200 |
80.000 |
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Mutual Funds |
70440 |
0.678 |
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Financial Institutions |
200000 |
1.923 |
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Bodies Corporate |
602905 |
5.799 |
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NRIs/OCBs |
102297 |
0.984 |
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Indian Public |
11 03658 |
10.616 |
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Tatal |
103196500 |
100.000 |
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BUSINESS DETAILS
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Line of Business : |
The
company is engaged in manufacturing and selling of hydraulic and air brake
components. It also acts as traders
of brake fluid, hydraulic brake components including rear brake assembly,
tandem master cylinder, front caliper assembly and rotor discs. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Hydraulic, Air & Air Over Hydraulic
Brake Components |
Nos. |
|
1 4 B99 438 |
-- |
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o) Boar Broke |
Nos. |
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-- |
1 117930 |
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Tandem Master |
Nos. |
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-- |
813797 |
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Front Coliper |
Nos. |
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-- |
1 034 725 |
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Rotors (Discs] |
Nos. |
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-- |
465 347 |
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Two Wheelsr Brakes |
Nos. |
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-- |
427 792 |
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GENERAL
INFORMATION
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No. of Employees : |
2200 |
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Bankers : |
v
State Bank of India v
Citibank N. A. v The United Western Bank Limited |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
statutory
auditors
Bansi
S. Mehta & Company Chartered
Accountants internal
auditors
Price
Waterhouse Chartered
Accountants |
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Associates/Subsidiaries : |
Precision
Seals Manufacturing Limited |
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Joint Venturers - |
v
Kalyani Steels Limited v
Kalyani Utilities Development Private Limited v
Forge Investment Limited v
Mundhwa Investment Limited v
Robert Bosch Corporation, USA |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
15,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 millions |
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Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
|
10,396,500 |
Equity Shares |
Rs. 10/- each |
Rs. 103.965 millions |
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FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
103.965 |
103.965 |
104.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
832.570 |
650.853 |
527.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
936.535 |
754.818 |
631.000 |
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LOAN FUNDS |
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1] Secured Loans |
26.272 |
99.627 |
108.400 |
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2] Unsecured Loans |
436.765 |
374.126 |
318.100 |
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TOTAL BORROWING |
463.037 |
473.753 |
426.500 |
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DEFERRED TAX LIABILITIES |
110.900 |
128.810 |
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TOTAL |
1510.472 |
1357.381 |
1057.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1083.218 |
1016.347 |
932.400 |
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Capital work-in-progress |
47.346 |
31.302 |
76.500 |
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INVESTMENT |
87.214 |
61.406 |
1.400 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
261.998 |
214.664 |
196.300 |
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Sundry Debtors |
646.119 |
574.198 |
416.200 |
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Cash & Bank Balances |
131.859 |
167.591 |
41.800 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
105.953 |
75.331 |
166.200 |
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Total Current Assets |
1145.929 |
1031.784 |
820.500
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
651.302 |
608.187 |
573.600 |
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Provisions |
201.933 |
175.271 |
204.900 |
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Total Current Liabilities |
853.235 |
783.458 |
778.500
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Net Current Assets |
292.694 |
248.326 |
42.000
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
5.200 |
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TOTAL |
1510.472 |
1357.381 |
1057.500 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other
income] |
3692.852 |
3024.526 |
2534.700 |
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Profit/(Loss)
Before Tax |
490.128 |
410.843 |
241.300 |
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Provision
for Taxation |
165.836 |
146.307 |
83.600 |
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Profit/(Loss)
After Tax |
324.292 |
264.536 |
157.700 |
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Export
Value |
346.507 |
176.172 |
-- |
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Import
Value |
321.901 |
171.125 |
-- |
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Total
Expenditure |
3202.723 |
2613.683 |
2914.300 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
|
31.03.2006 |
|
Type |
|
|
Full
Year |
|
Sales Turnover |
|
|
4328.700 |
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Other Income |
|
|
413.400 |
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Total Income |
|
|
4742.100 |
|
Total Expenditure |
|
|
3656.300 |
|
Operating Profit |
|
|
1085.800 |
|
Interest |
|
|
06.100 |
|
Gross Profit |
|
|
1079.700 |
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Depreciation |
|
|
266.400 |
|
Tax |
|
|
262.700 |
|
Reported PAT |
|
|
570.600 |
|
Dividend (%) |
|
|
1200.000 |
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt
Equity Ratio |
0.55 |
0.65 |
0.63 |
|
Long
Term Debt Equity Ratio |
0.48 |
0.50 |
0.55 |
|
Current
Ratio |
1.07 |
0.98 |
1.10 |
|
TURNOVER
RATIOS |
|
|
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|
Fixed
Assets |
2.58 |
2.43 |
2.20 |
|
Inventory
|
17.23 |
16.43 |
13.65 |
|
Debtors |
6.73 |
6.82 |
6.77 |
|
Interest
Cover Ratio |
85.48 |
29.71 |
15.03 |
|
Operation
Profit Margin (%) |
16.39 |
15.63 |
13.73 |
|
Profit
Before Interest and Tax Margin (%) |
12.07 |
12.58 |
10.43 |
|
Cash
Profit Margin (%) |
12.22 |
10.88 |
9.66 |
|
Adjusted
Net Profit Margin (%) |
7.90 |
7.83 |
6.36 |
|
Return
on Capital Employed (%) |
37.73 |
37.26 |
24.45 |
|
Return
on Net Worth (%) |
38.35 |
38.17 |
24.21 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.894.85/- |
|
Low |
Rs.817.00/- |
LOCAL AGENCY
FURTHER INFORMATION
The
company’s fixed assets of important value include Land (Freehold and
Leasehold), Building (Freehold and Leasehold Building), Plant and Machinery (Freehold
and Leasehold Plant and Machinery), Furniture and Vehicles.
History
Actually incorporated as a private
limited company in March 1982, Kalyani Brakes (KBX) was later converted into
public limited company in Nov.'82. In Jan.'83, it tied up with Allied Signal, a
Fortune-500 company to manufacture air and air-over-hydraulic brake systems in
Bambhori, Maharashtra. In FY 2000-01, NABCO Ltd.of Japan, one of the promoters
has sold their equity stake (26.66%) in the company to the other two promoters viz.
Robert Bosch Corp. of USA, and Kalyani Group of India in equal
proportion.
Kalyani Brakes(KBX), a JV company between Kalyani Group of India and
Robert Bosch Corp of USA is into manufacture of Brake systems meant for
automotive applications i.e Hydraulic, Air and Air over Hydraulic brake
components. The company which aims to cater all the segments of the automobiles
industry i.e agri tractors, CVs, two/three wheeleers and passenger cars keep on
upgrading its technology by Collaborating with Wold leaders. Bosch Braking
Systems provides state of the art technology from Japan and France for Vehicles
of Japanese and European Origin respectively. Brembo S.P.A. of Italy helped KBX
to introduce Hydraulic disc brakes for Indian motorcycles for the first time, Titan
Italia S.P.A. helped KBX in wet brakes for Indian Agriculture tractor
applications. The company has also tied up with Japan Brake Industrial Co. Ltd
for the Brake Shoe bonding technology in upgrading and expanding of KBX's
products range.
The Company is having a subsidiary, Precision Seals Manufacturing Ltd,
holding a 60% equity which is dealing in Rubber and Backelite items for
Autombiles.
It came out of the red during 1986-87. It offered rights in May '93
(premium : Rs 30) to part-finance the expansion of manufacturing facilities
from 60,000 tpa to 1,00,000 tpa.
The company established a new state-of-the art manufacturing facility at
Chakan, Pune. This new plant supplies brakes to foreign car manufacturers like
Ford, GM and Hyundai, and was set up at a cost of Rs 37 crore. It is a
state-of-the-art plant, based on the cell-concept of manufacturing.
The company has received the ISO 9000, ISO 9001 and the QS 9000 - the
stringent quality standards set by three major US automakers. With this and a
little help from its collaborators, NABCO and Bosch, KBX can hope to tap the
foreign markets in the event of a slowdown at home.
The technical collaboration agreement with Japan Brake Industrial Co,
Japan for brake shoe bonding technology help in manufacturing imported brake
shoes for various passenger cars. This bonding technology would be utilised in
the vehicles coming out of the Maruti's stable which includes Alto, Wagon R,
Baleno and the new vehicle to be launched in Jan.'2001. The company is also
targetting other models.
The company has taken initiative for purchase of brake plant and
equipment from two leading international brake manufacturers. The company is
also in for purchase of business from Eligi, Comibatore for truck air brakes
etc.
The company has increased the installed capacity of Hydraulic, Air and
Air Over Hydraulic Brake Components by 3251438 Nos during 2004-05 and with this
expansion the total installed capacity of Hydraulic, Air and Air Over Hydraulic
Brake Components has increased to 14899438 Nos.
During 2004-05 the manufacturing facility at Jalgaon Plant was totally
revamped from process to product type set up. A brand new facility was
commissioned at the existing site and this facility (J2 Plant) is based on cellular
manufacturing and it's operations are being run by highly skilled personnel.
Further the Aluminium Foundry at Jalgaon which supplies critical gravity die
castings to the plants at Pune and Jalgaon was expanded and modernized. A new
line automatic line was purchased that incorporates robotic pouring of the
liquid metal to ensure quality and consistency of castigs. The company has also
commissioned its facilities with a new product lines of Randem Vacuum Boosters
and Twin Pot Calipers.
The name of the company was changed from Kalyani Brakes Ltd to Bosch
Chassis Systems India Ltd during January 2006.
During October 2005 the company has signed an agreement with Brembo SPA
of Italy, a 50:50 joint venture for application engineering, production and sales
of two-wheeler brakes.
The
company also has technical collaboration with Titan, Italy and Brembo Spa,
Italy.
The
company has been accredited with ISO 14001 Certification.
Dividend:
The Directors are pleased to recommend a dividend of 120%
on equity shares (Rs.12 per equity share of Rs.10 each) for the year ended 31st
March, 2005.
Subsidiary:
A statement pursuant to Section 212 of the Companies Act, 1956, relating
to Precision Seals Manufacturing Limited, a subsidiary of the Company, as on
31st March 2005, is attached to the Accounts of the Company.
Consolidated financial statements of the Company (alongwith its
Subsidiary) and the Auditors' Report thereon, as on 31st March 2005, are also
attached to the Accounts of the Company.
Operations:
Conservation of Energy:
As a measure of energy saving and cost control, the Company took various
actions. For effecting savings in electrical energy, following specific
measures were taken.
At Jalgaon plant:
(i) converting anodizing plant & sealing tank heating system from
electrical to fuel heating thereby reducing the running costs,
(ii) replacing machine/inspection lights by energy efficient fluorescent
lights,
(iii) rationalizing the plant layout thereby resulting in substantial
reduction in fans & lighting load,
(iv) replacing centralized fresh air system by efficient decentralized
cooling fans system,
(v) installing additional automatic power factor controllers thereby
reducing power consumption,
At Chakan plant:
(i) adding accumulators and enhancing sizes for reducing loading on the
pumps,
(ii) providing proportioning controls for heaters in plating shop,
(iii) doubling the air receiver capacity to relax the duty cycle of
compressors and
(iv) installing wind ventilators in place of exhaust fans used on
electricity to extract impure air from the process areas.
These efforts resulted in significant reduction in the consumption of
energy. The Industry is not specified in the Schedule to Form 'A' of the
Annexure to Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988. They have, however, planned further actions for energy
conservation.
* Technology Absorption:
The efforts made in technology absorption are given in the prescribed
Form 'B' as an Annexure to this Report.
* Foreign Exchange Earnings and Outgo:
a) During the year, the Company doubled its exports and earned Foreign
Exchange equivalent to Indian Rs.358.375 millions.
b) The foreign exchange outgo on account of import of Components, Capital
Goods, Spares, Royalty etc. was of the order of Rs.390.901 millions.
Financial
Performance:
The company continued to record increase in sales and profits in F05. Net
sales increased by about Rs.640 million, a growth of almost 22%. Highest
contribution came from passenger car and utility vehicle products mirroring
high volume growth by OEM customers in this segment. Sales to the agriculture
tractors segment and exports nearly doubled. Sales to motorcycle manufacturers
remained more or less constant because of entry of competition.
Outlook:
In the past five years, KBX' growth has consistently outpaced growth in
the auto component industry. They are confident that this trend will continue
in 2005-06. Indian automobile industry is not likely to register the high
growth rates achieved in F05. They are therefore, looking for opportunities in
new market segments in order to diversify the market spread. During F06 new
segments that they can potentially address have been identified and these
include Quadra-cycles and Cross-Over vehicles. The Company is actively
developing products for these segments. Utility and Multi Purpose vehicles have
attained higher speed capability and need technologically enhanced braking
products to ensure improved safety. They have already upgraded brake systems
for two leading models in F05 and this will contribute to stronger market
positioning and competitiveness.
Exports will continue to be an important focus area. Based on products
already developed and programs on hand, the export thrust will
strengthen.
Concern areas for F06 are inflation and uncertainty over oil prices which
could dampen demand for vehicles and therefore, for KBX products. In the medium
term, Free Trade Agreements with various countries will pose challenges that
will require us to benchmark quality and costs with competitors in countries
like Thailand and China. The Company is fully aware and conscious of these
challenges and is taking proactive measures to respond to them.
INDUSTRY
India's automotive component industry
manufactures the entire range of parts required by the domestic automobile
industry for various vehicles including cars, jeeps, light and heavy commercial
vehicles (LCV's and HCV's), tractors, two and three wheelers. The total
domestic production of auto-components in FY99 was estimated at approximately
Rs126.8bn (US$ 2.95bn). Output (in terms of value) grew by 5.4%yoy in FY99 and
the industry registered a compound annual growth rate (CAGR) of 19.5% between
1994 and 1999. Most components required by the Indian automobile industry are
manufactured locally. Import dependence is low, approximately 13% of domestic
demand, and usually restricted to items requiring special steels and materials
or precision engineering (gearboxes for instance).
The Indian auto components industry started
out small in the 1940s supplying components to Hindustan Motors and Premier
Automobiles. In the 1950s, the arrival of Telco, Bajaj, Mahindra & Mahindra
led to steadily increasing production. It was however in the 1980s with Maruti,
that growth suddenly accelerated and the industry came of age. Boom time for
the auto components industry started with the arrival of India's "people's
car" - the Maruti that came to symbolize the hopes and aspirations of
India's growing middle class.
The new car required components that would
adhere to its stringent quality standards. It virtually gave birth to a variety
of new age auto component manufacturers who manufactured components that
combined the best of technology with quality. As Maruti became India's best
selling car, the path of Indian auto component industry took an upswing. Export
figures also climbed. Low costs of labthe and raw material resulted in exports
taking a quantum jump.
The influx of foreign auto majors ranging
from Mercedes Benz, Ford, General Motors to Daewoo two years ago presented a
world of opportunity for the industry. The auto components industry went
overboard with huge capacity expansion and modernization programs. However, the global auto giants soon
realized that the Indian market was not as big as it appeared to be. Their
targets went haywire, inventories piled up and bookings were cancelled. This
also coincided with a general slowdown in the Indian economy in the last one or
two years. The auto component industry in India, which is driven by domestic
demand, also faced sluggish growth. However, things have taken a turn for the
better. Growth in the commercial vehicle and the passenger car segments has
been 20%yoy and 40%yoy respectively in the first five months of FY2000.
Some Indian companies have used the interim
period to trim down by cutting costs and improving productivity. Several
companies have entered into technological collaboration and equity partnership
with world leaders in auto components. They have not only adopted their systems
but also their work ethics and management practices. Strict quality controls,
sound technology and high volumes will enable the Indian auto component
industry to chart greater progress in the coming future.
The number of players in the automotive
components sector is large with over 300 small and medium sized firms servicing
24 automobile companies. Typically, most auto ancillary firms have small
capacities, however in certain segments, the top two or three company’s control
80-90% of the market. To meet the international quality requirements and for
tapping the global markets, the Indian auto ancillary units have entered into
joint ventures with foreign majors. At present, the Indian auto component
industry has about 225 active collaborations, out of which 67 were with Japan,
40 with U.K., 44 with Germany, 31 with the USA and the rest with other
countries. Several international automotive component manufacturers are
contemplating establishing a production base in India due to cost
competitiveness especially the availability of low cost skilled technical
labour.
According to ACMA, the production of
automobiles is estimated to grow at a CAGR of 10% in the next four years. This
augurs well for the ancillary sector, whose demand growth is expected to be
around 12% in FY2000.
In the passenger car segment, which has
witnessed tremendous growth in recent months, especially with the launch of several
economy car models, capacity is expected to more than double from 415,000 units
in FY98 to around 850,000 in FY02. This is one segment that will provide
stimulus for auto component growth.
A pick up in commercial vehicle (CV) demand
in the first five months of FY2000 (at 20%yoy) will prove to be good news to
companies catering to the sector. The CV segment is expected to operate at a
fleet utilization capacity of around 94% in FY99 and 99% in FY2000.
The two wheeler segment is projected to
register a growth of 10%-11% over the next three to four years. With foreign
majors like Honda setting up facilities in the near future and every major
player keen to launch new models, the two wheeler segment, along with the
economy car segment, is expected to stimulate growth in the auto ancillary
sector over the next two years.
Tierisation
The global automobile industry is operating
at a capacity utilization level of 65% leading to excess capacity in the
industry. As per some estimates the world will be having just five automobile
majors by year 2010 compared to present level of 13 leading players. This will
lead to intense competition among the majors to curtail the manufacturing costs
and remain slim. One way to achieve it will be to opt for sourcing assemblies
or systems instead of individual components from auto ancillaries. This is
called tierisation, and will help in reducing costs substantially by reducing
number of direct suppliers (i.e. purchase cost), providing economies of scale
to suppliers through large volumes, sharing design and development costs of
components, reducing time for vendor development, reducing capital investment
for assembling subsystems etc.
Typically, the supplier who has the highest
contribution in terms of value addition to the assembly and is closest in
supply chain to vehicle manufacturer, undertakes the responsibility to
integrate and supply complete systems. For example, a producer of suspension
systems would supply an assembly of suspension links, shock absorbers, wheel hubs
and brakes and will be recognized as tier-I supplier. He will in turn source
sub-assemblies from tier-II supplier. The tier-II supplier will be sourcing the
components required for sub-assemblies from auto component vendors who form
tier-III. The tier-I supplier will bear higher risk in terms of system design,
development, integration, testing and supply. This will help in obtaining
higher quality standards at the input levels of automobile manufacturer and
also reduce the capital requirement for auto major.
With the development of tierisation in the
global automobile industry the tier-I level will be occupied by auto component
majors like Delphi, Visteon etc. The tier-II level will be taken up by
developing country suppliers who have strong R&D and quality standards. The
tier-III level will be occupied by suppliers situated in developing countries
providing skilled and cheap labour.
Looking at this trend it will be clear that,
in the long run India will be having a very few players in tier-II level with the
major portion being concentrated with tier-III level, which will be of high
volume low margin business. But tier-III suppliers will be able to garner large
volumes from different parts of world leading to substantially higher exports
from the sector.
In India, Tata AutoComponent Systems Ltd
(TACO) has come to represent the global trend towards moving into a tier
system. TACO has structured its operations on the basis of a two-tiered set of
joint ventures. Tier-1 joint ventures are technology intensive and feature
partnership with foreign companies. Tier-2 ventures are with Indian companies
and address more the issue of lack of capital. If they need technology that is
also provided. Within the TACO hierarchy, Tier-2 joint venture feed onto Tier-1
companies.
The preferred ratio of equity divide is
50:50 in Tier-1 joint ventures and 50% to majority stake for Tier-2 companies.
Currently, TACO has in place six Tier-1
joint ventures covering seats, interior plastics, wiring harness, radiators,
rear-view mirrors and plastic fasteners. Its collaborators include Johnson
Controls of the US, Sommer Allibert of France, Ficoso of Spain and Yazaki, Toyo
radiators and NIFCO of Japan. It has one Tier-2 venture for sheet metal supply
in JBM Tools India.
The WTO Regime
Another significant event to happen in the
near future is the coming in force of the World Trade Organization (WTO)
guidelines in less than two years time. This would mean that the industry would
have to contend with a liberalized import regime from March 2001 onwards.
Passenger cars, including second-hand cars, CKD kits and auto components will
be allowed to be imported under an open general license (OGL). Undoubtedly,
this poses a major threat to the well being of the Indian auto and auto
component sector.
The question, which is exercising many a
mind, pertains to the state of the readiness for the new scheme of things. An
important concern is the problem of overcapacity in the automobile industry
which is stated to be about 3 times than that required. Also, there are too
many manufacturers. Take for example, the market in China. With a market of 2mn
vehicles (except two wheelers), there are only three players. In contrast,
India with a market of less than 1mn vehicles has around 24 manufacturers. The
result – lack of economies of scale to withstand international competition. The
advantage of low labour costs is mitigated by lack of adequate volumes and low
productivity. This could result in a shakeout in the industry.
Then again with car majors like Daewoo,
Hyundai, Ford, GM and others setting shop in the country, demand for better
quality, lower prices and timely delivery will be the order of the day. A
recent study involving automakers has revealed that they are not very satisfied
with Indian component manufacturers and would prefer free imports. This should
ring a warning bell among Indian players.
But there’s an apparent silver lining in
this doomsday scenario. Indian auto manufacturers have the advantage of lower prices,
which will be difficult for international giants to match. However, there is no
gainsaying the fact that Indian component manufacturers have to shed their
complacency and learn to survive in a changed environment.
BUSINESS
In FY2000, the company started commercial
supplies to Telco and Maruti for their new models.
Since, its inception, the company had to
face cash and liquidity problems. It came out of the red during 1986-87. It
offered rights in May, 1993 (Premium Rs. 30/-) to part finance the expansion of
manufacturing facilities from 60,000 tpa to 1,00,000 tpa.
The company established a new state-of-the
art manufacturing facility at Chakan, Pune. This new plant supplies brakes to
foreign car manufacturers like Ford, GM and Hyundai and was set up at a cost of
Rs. 370.000 millions. It is a state-of-the-art plant, based on the cell-concept
of manufacturing.
The company has received the ISO 9000, ISO
9001 and the QS 9000 – the stringent quality standards set by three major US
automakers. With this and a little help from its collaborators, NABCO and
Bosch, the company can hope to tap the foreign markets in the event of a
slowdown at home.
A technical collaboration agreement has been
reached with Japan Brake Industrial Company, Japan for brake shoe bonding
technology. Commercial production of brake shoes would help in manufacturing
imported brake shoes for various passenger cars. This bonding technology would
be utilised in the vehicles coming out of the Maruti’s stable which includes
Alto, Wagon R, Baleno and the new vehicle to be launched in January, 2001. The
company is also targetting other models.
With the passenger car sales falling, the
company took various steps in the fiscal 2001 for a potential growth in the
coming years like purchase of brake plant and equipment from two leading
international brake manufacturers, purchase of business from Eligi, Coimbatore
for truck air brakes etc.
Bosch India is
regional branch of the Bosch Group, one of the world’s biggest private
industrial corporations. Headquartered in Stuttgart, Germany, the Bosch Group
has approx. 251,000 employees worldwide, and generated an annual sales revenue
of 41.5 billion euros in 2005.
In India, the Bosch
Group has about 15,044 employees, and in business year 2005 achieved total
consolidated sales of Rs 40 billion (Euro 729 Mio).
Bosch
has grown phenomenally in India, way back since 1922 when the Illies company established
a Bosch agency in British India. The founding of Motor Industries Company
Limited in 1951 spurred off an accelerated growth in the automotive industry
segment which has not stopped till date. Bosch has a strong and voracious
presence in the country today, in diverse industry segments at numerous
locations.
In
India, Bosch is represented in by its subsidiary companies -
1) Motor
Industries Company Limited - MICO
2) Robert Bosch India Limited – RBIN
3) Bosch Rexroth India Limited – BRIN
4) Bosch Chassis System India Limited
As per website
Business Sectors
Automotive technology
Bosch Group was the world's largest automotive supplier in terms of sales
in 2004, generating a total of 25.3 billion euros. Bosch plans to utilize the
opportunities in the rapidly growing Indian market for passenger cars. It is
also stepping up its diesel operations in India, foraying into the
manufacturing of common-rail diesel injector systems. In India,
Automotive Technology represents the largest area of business, supplying both
to the local automotive industry as well as exporting components around the
world.
Consumer goods and
building technology
In
India, this sector is engaged in the Power Tools and Security Systems
divisions. Bosch is the world leader in the power tools segment and has
been the pioneer in DIY (Do-it-Yourself) across different countries, including
India. Bosch Security Systems globally has more than 80 years of experience in
fire detection and alarm systems. In India, Bosch Security Systems is one
of the leading security technology players with a comprehensive portfolio.
Industrial
technology
Bosch
Rexroth AG is an expert for all drive, control and motion technologies. The
Industrial Technology division Bosch Rexroth India provides a complete range of
world-class products, systems and services to customers in India, Bangladesh,
Nepal and Sri Lanka through its manufacturing facilities, service centres, and
service partners from all over South Asia.
Software services
The
software division of Bosch in India is the largest development centre of Bosch
outside Germany. For over 15 years now it has been the preferred engineering
services and solutions partner
Another first from
Bosch for the Indian Automotive Industry
• First in India to start manufacturing Common Rail High Pressure Pumps
& Injectors
• Bosch Common Rail to bring new driving pleasure and economy to the
Indian car owner
Bangalore, June 01, 2006: Bosch announced the launch of its
first manufacturing facility in the country for Common Rail High Pressure pumps
at Bangalore, thereby further expanding its presence in India. Bosch has
already announced an investment of Rs 1800 crores in India between 2005 and
2008, of which Rs 550 crores have been earmarked for the establishment and
expansion of Common Rail System production in Nashik and Bangalore. The new
production line in Bangalore has an initial installed capacity of upto 1,000
Common Rail High Pressure pumps per day. Bosch has been manufacturing Common
Rail injector components at its Nashik facility since the beginning of 2006 and
has a current capacity of 4000 injector component sets per day. It plans to
start production of complete Common Rail injectors from the same facility in
2007.
“Diesel
vehicles are becoming increasingly popular in India,” said Dr Bernd Bohr,
Member, Bosch Board of Management on the occasion. “We expect to see diesel’s
share in the Indian car and utility vehicle market rise from its current 30 to
more than 40 percent by 2010, and Bosch is well positioned to support this
growth. We have designed the new manufacturing facilities so that we can
flexibly serve the requirements of automakers, especially the local
manufacturers,” he added. In 2005, Bosch sold around 40,000 Common Rail systems
in India. In 2010, this figure is expected to be as high as 6,00,000 systems.
“Nearly every automaker in India has now announced that it will be launching
diesel cars with Common Rail technology,” Dr Bohr said. On an average, diesel
engines consume around 30 percent less fuel than a comparable gasoline engine —
and emit significantly less oxides of carbon. In addition, diesel is 30 percent
less expensive than gasoline in India.
The Indian growth market: Good opportunities for Clean, Safe and Economical
Technologies
Bosch’s
trust in the Indian market is reflected in its contribution to the Indian
industry. The consolidated sales figures of the Bosch group in India were as
high as Rs 40 billion in 2005 and expected to increase by 17 percent to 47 billion
in 2006. “India is one of the growth motors for the business in Asia Pacific,”
said Dr Bohr.
With
around 1.3 million cars and utility vehicles manufactured in 2005, India is
already Asia’s fourth largest car market. Currently only seven out of every
1000 persons in India are carowners and this represents a huge potential for
growth. Assuming that a quarter of a large number of the two wheeler owners
upgrade to a car in the medium term, there is an additional sales potential of
more than 1 million cars per year. This is particularly significant given the
fact that more than 75% of car sales in India are in the compact low priced
vehicle segment costing less than Rs 4,00,000. “Given these growth predictions,
India could be one of the world’s five most important automobile markets by the
beginning of the next decade,” Dr Bohr said. The country is also the world’s
largest motorcycle market and the largest market for tractors and
three-wheelers. Supporting this growth are nearly 50,000 kilometres of Indian
roads, which are being widened by 2012.
In
order to comply with stricter emission norms, new vehicles will need to be
equipped with electronically controlled fuel injection systems like Common Rail
Systems. Further the time available for the development of these vehicles will
be very short. “For this reason they are investing not only in the
manufacturing capabilities but also in improving the development and
application capabilities for Common Rail Systems,” Dr Bohr said. In the future
safety will continue to play an increasingly important role with improving road
infrastructure and consequently higher vehicular speeds. Technologies such as
Antilock Braking System (ABS), and Electronic Stability Program (ESP) will play
a significant role towards this. Bosch has played a crucial role in the
development of automotive technology in India and will continue to do so in the
coming years.
Bosch flagship - Motor Industries Company Limited, India's leading
automotive components supplier
Bosch
has had an active presence in India for about 80 years – first through its
representative office in Kolkata, and then from 1951 onwards through its
flagship subsidiary Motor Industries Company Limited, headquartered in
Bangalore. Diesel and Gasoline fuel injection systems, starters, alternators,
spark plugs form some of the important products within its automotive range.
With some 4,000 sales outlets, 770 workshops and nearly 100 Bosch Car Service
outlets, Mico owns India’s largest automotive aftermarket network.
India
not only plays a key role in the production network of Bosch but also in its
development activities. Robert Bosch India Limited, a wholly owned subsidiary
of Bosch in India, headquartered in Bangalore, is the company's largest
software development center outside Germany. By the end of 2006, it will employ
around 3,000 associates working on software development for intelligent vehicle
systems. Worldwide, Bosch spends some 9 percent of its sales revenue in its
Automotive Technology business sector on Research and Development – far more
than the average in the industry. The company is also the world leader when it
comes to filing patents related to Automotive Technology.
About BOSCH
The Bosch Group is a leading global manufacturer of
automotive and industrial technology, consumer goods, and building technology.
In fiscal 2005, some 251,000 associates generated sales of 41.5 billion euros.
Set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for
Precision Mechanics and Electrical Engineering,” the Bosch Group today
comprises a manufacturing, sales, and after-sales service network of more than
280 subsidiaries and more than 12,000 Bosch Service Centers in over 140
countries.
The special ownership structure of the Bosch Group
guarantees its financial independence and entrepreneurial freedom. It makes it
possible for the company to undertake significant up-front investments in the
safeguarding of its future, as well as to do justice to its social
responsibility in a manner reflective of the spirit and will of its founder. A
total of 92% of the shares of Robert Bosch GmbH are held by the charitable
foundation Robert Bosch Stiftung. The entrepreneurial ownership functions are
carried out by Robert Bosch Industrietreuhand KG.
Additional information can be accessed at www.bosch.com
About Motor Industries Company Limited
Motor Industries Company Limited is the flagship of the
Bosch Group in India. Founded in 1951, it has grown over the years to become India’s
largest auto component manufacturer. It is also the largest Indo-German
company.
The Bosch Group holds 60.55% stake in Motor Industries
Company Limited. Access to state-of-the-art technologies from Bosch and a
commitment to world-class quality have made it the country's largest
manufacturer of Diesel Fuel Injection Equipment and one among the largest in
the world. It is headquartered in Bangalore with facilities in Bangalore,
Nashik, Naganathapura and Jaipur. All the 4 plants are TS 16949 and ISO 14001
certified. With strength of over 9800 associates, the company manufactures and
trades products as diverse as fuel injection equipment, industrial equipment,
auto-electricals, hydraulics, electric power tools, packaging machines,
security systems and Blaupunkt car audio systems.
It has a strong after sales network spanning across 1000
towns and cities in India with over 4,000 authorised representations which
ensure widespread availability of both products and after-sales services. As Bosch
is focusing on India to develop it as a technology hub, the company is gearing
up to meet the challenges.
Founded in 1951,
Mico is the largest Indo-German company, and the largest manufacturer of diesel
fuel injection equipment in the country.
Mico employs about 9,853 associates, and in business year 2005 generated net
sales of Rs 30,168 million with a good growth in both automotive as well as the
non-automotive businesses.
Mico’s business
areas include common rail injectors and components, diesel fuel injection
equipment, industrial equipment, auto-electricals, gear pumps for tractor
applications, electric power tools, packaging machines, security technology
products and Blaupunkt car multimedia systems. The nationwide network of MICO
spans across 1000 towns with over 4,000 authorised representations ensures
widespread availability of both products and after-sales services.
With
Bosch, Mico has developed excellent R&D and manufacturing capabilities,
which has helped build a strong customer base and establish market leadership
through the high quality of its technology and products.
Mico’s
corporate office is located at Bangalore, India; with state-of-the-art and ISO
certified
Export Oriented
Units
Mico has advanced
ISO certified manufacturing plants at Bangalore, Naganathpura (near Bangalore),
Nashik and Jaipur. Of these Naganathapura and Nashik plants also house Export
Oriented units.
Research and Development
The Bosch group preserves its competitiveness with
innovations and cutting-edge technology solutions. Throughout the world, more
than 22,000 associates are involved in research and development for the Bosch
Group.
The company’s technological competence is also
manifested in the large number of patent applications it files. Bosch is the
second largest patent applicant in Germany, and the third largest at the
European Patent Office.
Technical Center India
Spread over an area of 10,000 sq m (approx.),
Technical Center India is located in Bangalore. The futuristic Technical Center
India is the first-of-its-kind in the country, dedicated to providing
world-class technological solutions for the auto industry. It has over 250
qualified and experienced engineers and technicians.
The Technical Center India is the first Global
Development Centre in the Bosch group, outside Europe. It works in tandem with
the automotive industry to develop products to match specific needs. With the
infusion of new international automotive technology in the last decade, it has
swiftly responded to match the needs of new generation vehicles.
Technical Center India offers solutions to vehicle and
engine manufacturers in the application of Electronic Diesel Control and Petrol
Injection Systems. It has the global responsibility of developing certain
products like single cylinder pumps, multi-cylinder pumps and mechanical
distributor pumps for the entire Bosch group. As the global development centre,
it is also involved in:
• Design and development of new products from
concept to
manufacturing
• Manufacture and testing of proto samples
• Reliability testing
• Product quality improvements and rationalisation
• Technical co-ordination with other
manufacturing locations, in respect of
quality
and warranty
Facilities in R&D -
• Engine Test Cells for emission, performance and
endurance
• High Precision Calibration Test Benches
• Injector Testing
• Reliability and Metallurgical Testing
•
Computer Aided Design
Developments in the Application Centre
As a step towards meeting customer needs with the
change in the emission scenario, a full-fledged application test facility, for
electronic diesel control, petrol injection, spark plug and auto electrical
products, is housed in the new Application Centre.
Set up primarily to cater to the requirements of
the Indian auto manufacturers, this new setup is a perfect testbed for
manufacturers looking to upgrade their products with great attention to detail.
Facilities include –
•
Engine Testing dynamometer
•
Chassis Dynamometer (vehicle testing)
•
High-precision calibration test benches
•
Spark plug testing
•
Starter motor testing
•
Alternator testing
•
Vibration testing
•
Glow plug testing
•
Climatic testing
•
Instrumentation lab
Environment Initiatives
Like
at Bosch, regard for environmental protection is one of Mico’s basic corporate
principles. Product quality, economic efficiency and environmental protection
are equal objectives. MICO follows the 3S principle of Bosch — sicher, sauber,
sparsam— of making automobiles safe, clean and economical.
Mico’s
focus on environmental awareness and continuous improvement are based on
stringent Bosch global guidelines.
Technologies
like Reverse Osmosis and Ion Exchange processes are employed for treatment and
reuse of process waste water across all plants. About 8 lakh litres of treated
effluent is being reused for gardening and other secondary purposes. More than
10,000 trees help maintain ambient air quality, holding soil and ground water
and acting as carbon sinks in the premises.
As
part of its social responsibility, MICO is actively involved with State and
Central Pollution Control Boards, non-governmental committees such as CII,
BCIC. The CII National Awards “Excellent Water Efficient Unit”, “Excellent
Energy Efficient Unit” and Leadership and Excellence award in SHE (Safety,
Health & Environment) – 2004 are some of the awards that MICO has won.
Corporate
Communication Campaign
‘Innovations’ campaign
Since
the last 120 years, innovations have been an unbroken tradition at Bosch.
Inventions to serve life continue to be made. The number of patents that Bosch
registers simply prove this.
Bosch
‘innovations’ are spread in both automotive and non-automotive segments
worldwide. Bosch’s R&D prowess is also being actively pursued in India as
well. The latest campaign reflects this global competence and communicates the
benefits to customers in India.
Bosch and India - Driving together since 1922
Bosch,
has its headquarters at Stuttgart, Germany, and shares a long standing
relationship with India. The 'Stuttgart ad' elaborates about Bosch's presence
in India and of its commitment to the Stuttgart-India relationship.
In
this context, they have released an advertisement that proclaims “Bosch and
India. Driving together since 1922.” It goes on to elaborate about Bosch’s
presence in India and of its commitment to the Stuttgart-India relationship.
Launch of the Bosch Brand in India at the 8th Auto Expo – 2006
Bosch’s
participation at the 8th Auto Expo 2006 is a landmark event, since it marks the
launching of the Bosch brand in India in its largeness.
The
latest Corporate campaign projects one of the most significant dimension of the
Bosch world – the ability to innovate and make life better with innovative
technologies, through continuous inventions arrived at by meticulous research
and development. For decades, Bosch has silently played a dynamic role in the
world of automotive inventions.
The
campaign brings together the BOSCH, Blaupunkt, KBX, MICO and Rexroth brands
under the umbrella brand BOSCH.
Corporate Advertising Campaign in India based on the 3S principle
In
India, Bosch is working together with Mico to make mobility safe, clean and
economical, following the 3S principle of Bosch.
‘Safe - sicher’ Ad
The
‘Safe’ ad has been created to highlight Bosch’s pioneering efforts to promote
corporate responsibility in India. The advertisement communicates Bosch’s
global concern on safety and innovation in new technologies through investment
of billions of euros in research and development.
It
highlights automotive technologies such as ABS, ESP, and anti-crash sensors
pioneered by Bosch to increase safety levels for the driver. It focuses on the
varied and hostile conditions on Indian roads (such as monsoon) that Indian
motorists face on a daily basis. The ad also encourages motorists to take
responsibility for safe driving by urging them to wear seatbelts.
‘Clean - Sauber’ Ad
The
‘Clean’ Ad was created to highlight Bosch’s pioneering efforts to promote
corporate responsibility in India. It highlights the fact that you as a
customer is assured of the environment-friendly technology of Bosch. It highlights
automotive technologies such as the Common Rail System that help reduce
emission levels of vehicles.
‘Economical - Sparsam’ Ad
For
India, Common Rail Systems have the potential to satisfy the stringent Bharat
stage-III norms stipulated for automobiles in metropolitan cities.
The
‘Economical’ ad narrates how Bosch has applied innovations like common rail and
diesel fuel injection to make every rupee go the longest way.
Bosch’s
tradition of optimising consumption, emissions and safety with new products is
a recurring theme. Piezo injectors, particulate filters, and research into
alternative drive technologies are just three examples of how Bosch components
will shape the future of the eco-friendly car in the near future.
Other Environment ads
‘Leaf’ Ad
There
is a burgeoning growth in the number of two-wheelers and four-wheelers in the
country. Pollution has risen to alarming levels. The greenness of the leaf
associates with ‘Sauber’ which means clean, emphasizing clean air. It further,
highlights that BOSCH is technology oriented with an eye for environmental and
social
concerns.
‘Butterfly’ Ad
Mico
Bosch is a company that cares for the environment and this philosophy is built
into the core of the business practices. This ad was posted at six main
airports in India and at large outdoor hoardings.
‘Environment Day’ Ad
Mico
commemorated WED, 2005 at the Bangalore headquarters, and at all the plants. In
Bangalore, the kickoff event witnessed participation from over a 1000 school
children, residents and NGOs EcoWatch and Suchi Mitra. Mico also co-sponsored
the ‘Seminar on Transport and Environment Friendly Technologies (STEFT), 2005,
in association with Karnataka State Pollution Control Board. The seminar
showcased environmentally safe technology inventions by Bosch.
MICO BOSCH -
Awinning team once again
Subsequent
to winning the ‘Auto Component Manufacturer of the year 2005’ award previous
year, MICO BOSCH has once again proved its prowess in the automotive arena. The
award won this year brings forth onto the surface the fact that Bosch combines
crucial factors like safety and technology, with the drive to innovate and
maintain the same, synonymous with the Corporate and Product philosophy of
Bosch – the 3S principle – to make driving safe, clean and economical.
Mico
Bosch was the unanimous choice of the jury behind the NDTV Profit CAR INDIA
AWARDS 2006 for the Safety & Technology Award. This award recognizes the
best in the industry, and has been instituted by the newest automotive magazine
in the Indian scene - CAR INDIA. The jury focused on the advances made in
automotive technology which also have bearing on safety.
This important award was presented to Mico Bosch this year for its pioneering
work on the new age direct injection diesel fueling systems, with notable
emphasis in the range of common rail diesels which have already appeared in
series production cars in India.
Also
taken into account was the persistent focus of Mico Bosch on unit injector
systems which are entering the scene in the high profile high aspiration
D-segment cars. This award looked into not just the advances in the technology
but also the benefits the new technology brought to automotive users as well as
the potential for the technology to be applied in India, both in user terms as
well as in manufacturing terms.
The Safety & Technology Award was presented to Dr Albert Hieronimus -
Managing Director, Mico and
Mr M Lakshminarayan - Joint Managing Director, Mico by Mr Shrikant
Bosch assumes industrial leadership
of Kalyani Brakes Ltd., to expand its brake activities in
India
Significant opportunities also seen for ABS
· Bosch increases its holdings in Kalyani
Brakes Ltd. to 80 percent
· Basis for
further expansion in a rapidly-growing market
The
Bosch Group purchased from the Kalyani Group, Pune, India, its 40
percent equity holding of the Indian brake manufacturer Kalyani Brakes
Ltd., Pune. Bosch holdings in the company have thus grown to 80
percent. An agreement to this effect was reached on July 16th, 2005. Kalyani
Brakes was previously operated as a joint venture between Bosch
and the Kalyani Group, each with a 40 percent holding. The rest of the
shares are widely held.
With
the assumption of the industrial leadership, Bosch plans
to rename the company to Bosch Chassis Systems India Ltd. In the
future, Bosch also plans to extend its worldwide manufacturing base for
modern braking systems to India, including manufacture of the antilock braking
system ABS. The company thus plans to utilize the opportunities in a rapidly
growing market for passenger cars.
Kalyani Brakes
is a leading Indian brake manufacturer. The company manufactures conventional braking
systems and components for passenger cars, tractors, 3 wheelers and
two-wheelers in its plants in Jalgaon, Chakan, and Manesar. Kalyani Brakes
employs roughly 1,800 associates and in fiscal year 2004/2005 generated sales
of 63 million euros.
Apart
from its holdings in Kalyani Brakes, Bosch is represented
in India by its subsidiary companies Motor Industries Co. Ltd. (MICO),
Robert Bosch India Ltd., and Bosch Rexroth India Ltd.
The Bosch Group employs a total of some 14,000 associates in India including
Kalyani Brakes. In 2004, its Indian operations generated sales of
548 million euros.
Kalyani Brakes to
form joint venture with Italian Brembo
BOSCH's
Indian subsidiary, Kalyani Brakes, and the Italy-based Brembo
have signed a 50:50 joint venture agreement for manufacture and
sale of braking systems for two-wheelers.
A
press statement from Bosch said the total investment of the two partners will
be 13 million euros. The turnover, put at 20 million euros in the first year,
is expected to double in the next four years.
The
new company, KBX Motorbike Products Pvt Ltd, will be based in Pune.
Kalyani Brakes
will integrate its existing two-wheeler brake production into the joint venture.
Initially, the products will be sold domestically to feed the rapidly growing
two-wheeler market, whose size is estimated to be around six million units. As
per the agreement, signed on Monday, Brembo will contribute licences and
technology and will have the industrial leadership. The deal has to be approved
by the Antritrust Authorities and the Foreign Investment Promotion Board of
India. The Bosch Group recently doubled its stake in Kalyani Brakes
Ltd to 80 per cent.
Kalyani Brakes
manufactures conventional brake systems and components with plants in Jalgaon,
Pune, and Manesar. The company generated sales of 63 million euros in 2004-05
and has about 1,800 associates.
Apart
from its holdings in Kalyani Brakes, Bosch's other subsidiaries
are Motor Industries Co Ltd (MICO), Robert Bosch India Ltd, and Bosch Rexroth
India Ltd. The Bosch Group employs some 14,000 people in India, including those
in Kalyani Brakes.
In
2004, the Indian Bosch subsidiaries achieved sales of 548 million euros. Brembo
has been licensing some design for motorcycle braking systems, without brand,
to Kalyani Brakes since 1999.
The Company
Kalyani Brakes
Ltd., is a joint venture company between Kalyani
Group and Robert Bosch, Germany, a fortune 500 company. KBX is
engaged in manufacturing of hydraulic brakes and air brakes for two
wheeler market, passenger cars, light commercial vehicles and SUV's. Kalyani
Brakes caters to the leading Indian and International vehicle
manufacturers.
The Challenge
In
the last few years, since they have moved into the regime of price
competitiveness, rather than cost plus scenario, they had to look into various
options like material costs, internal conversion cost, labour cost and so on.
The Solution
ProBid™
- the Procurement Auction Solution coupled with Consultancy, Market Making
Services & Sourcing Intelligence.
The Success
Using, ProBidTM - KBX was able to achieve significant
success by :
- Creating an efficient
lotting
- Strategy Maximizing process
efficiency through Market Making process
- Introduction of new overseas
suppliers led to savings in excess of 10%
Relationship
KBX has signed a contract for an estimated purchasing value of Rs 500 Million.
So far online procurement has resulted in a significant saving of more than Rs 2
Million. In the last four months of 2001, KBX has conducted 3 events for
categories such as Steel Sheets, Cutting Tools and Brake Fluids.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered against
subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our Governance
Assessment focuses principally on the interactions between a company’s
management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 46.17 |
|
UK
Pound |
1 |
Rs. 86.06 |
|
Euro |
1 |
Rs. 59.14 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |