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CHAPTER -1
INTRODUCTION
1.1 Industry Analysis
Automotive spare parts and components are a lesser known
industry yet a big one. In past few years the industry has grown
enormously, even more than the automotive industry itself not
only in the Indian but global scenario.
This vast industry includes automotive components,
accessories, gadgets, spare parts and tools; the consumers being
the OEM segment, the replacement and aftermarket sector.
Automotive spare parts replacement and aftermarket have in
themselves become a major industry.
In mid 1990s the quality of Indian products increased a lot
and the prices were considerably lowered. This posed an
interesting situation where the Indian replacement and
aftermarket industry had geared up to meet the international
standards and awaited an ideal opportunity for global exposure.
Certain SMEs through their focused operations are now
serving the global automotive giants directly or through suppliers.
Online catalogs and websites have added to the online presence
of our clients. The results are quite apparent, Indian automotive
parts industry makes original components of major automotive
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giants like General Motors and Mercedes amongst others. They
have, through consolidated efforts been positioned as global
players of the sector.
The Indian advantage
Steered here by the countrys high engineering skills,
established production lines, a thriving domestic automobile
industry and competitive costs, global auto majors are rapidly
ramping up the value of components they source from India. Theindustry is poised to jump from exports of US$ 1.8 billion in 2004-
05 to US$ 5.9 billion in 2008-09. According to the automotive
components manufacturers association of India, more than a third
(36 percent) of Indian auto component exports head for Europe,
with North America a close second at 26 percent.
In 2006, components worth US$2 billion were exported byIndian companies. 75% of which were bought directly by car
companies. The original equipment manufacturer (OEMs) include
firms like general motors, ford motor company, Cummins
international, Bosch, Volkswagen, BMW, MAN (trucks) and JCB
(earth moving equipments) amongst others.
Over 20 OEMs have set up their international purchase offices(IPOs) in India to the components. This number is expected to
double by the year 2010. There is a large potential for a faster
growth of global business due to the growth in outsourcing
activities by global OEMs. It is estimated that the export will touch
US$ 6 billion in 2010.
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India enjoys a cost advantage with regard to castings and
forgings. The manufacturing costs in India are 25 to 35% lower
than its western counterparts. Indias competitive advantage doesnot come from costs alone but from its full service supply
capability.
Indian component suppliers have displayed a growing
capability to cater to the engineering and production needs of the
some of the worlds biggest auto companies.
This is largely due to:
Proficiency in understanding technical drawings and beingwell conversant in all global automotive standards; America,
Japanese, Korean, and European.
Appropriate automation has led to economically attractive
production costs.
Flexibility in small batch production.
Growing IT capability for design, development andsimulation.
Exciting times lie ahead for the Indian automotive component
industry. Besides the burgeoning demand from global auto
majors, there is also the domestic car industry, which is growing
at a spanking rate of over 16 percent, driven by a rising consumer
base and affordable loans. Such improvements have assistedcompanies in improving operational efficiencies, eliminating
wastes and reducing costs.
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Roots Industries specializes in the manufacture of a wide
range and line-up of automobile horns. Roots is a leading supplier
to all the major vehicle manufacturers like Ford, Daimler Chrysler,
Mitsubishi Lancer, Mahindra & Mahindra, Toyota, Tata Motors, Fiat
Uno and Siena, TELCO, TVS Motor Company, Kinetic Honda, etc.
Roots Industries Limited places a premium on original
technology and innovation. Its technical collaboration with Robert
Bosch S.S of Spain in 1995 has helped it to further strengthen its
R & D activities and technical competence. This collaboration
along with Roots' indigenous talent has kicked off a spree of
growth unmatched in the history of automobile OE manufacturers.
It all started with just a honk. Encouraged by the response, we
kept on moving ahead. In the beginning, we did not realize that
we would make such an impact. Slowly but surely, the
reverberations were felt far and wide. Indian automobile market
responded to our call. Soon the global market too followed suit.
Roots horns, in a very short span of time, got a place of pride in
millions of vehicles across the globe.
1.3 History
An obsessive hobby went into the making of this self-made
industrialist. Born in an agricultural family, young Ramasamy had
a great interest in repairing automobiles. This led to his getting
the master's degree in Automobile Engineering from Lincoln
Technical Institute, USA in 1969 and developing a unique Radiator
Coolant Recovery System, which is today a standard equipment in
almost all vehicles manufactured by the advanced countries.In 1970, Mr. Ramasamy promoted M/s. American Auto
Service, which was taken over in 1992 by Roots Industries Private
Limited, a company promoted by Mr. Ramasamy. This company
entered into technical collaboration with Robert Bosch, the world
leaders in auto electrical to manufacture all the range of Bosch
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Horns. Mr. Ramasamy had a very inquisitive and innovative
temperament.
Servo brakes were designed for the first time in India by Mr.
Ramasamy. He designed the first high frequency Wind Tone typehorn which was smaller and lighter than conventional horns.
Besides all the other firsts, Mr.Ramasamy introduced
electronically controlled Musical Air Horns for the first time in the
World.
The thirst for innovation and drive to move forward, led to
the establishment of a die casting unit to meet the captive
requirement of ROOTS. In 1987, Mr. Ramasamy set up a full-
fledged modern tool room equipped with the latest machines forthe manufacture of precision tools and dies. He promoted Roots
Multiclean Ltd., a joint venture in Techno-financial collaboration
with M/s. Hako Werke GmbH, Germany to manufacture world
class Industrial Floor Care and Floor Cleaning Equipments. RMCL
is successfully spreading the concept of Mechanized Cleaning in
India and also exports its products.
Mr. Ramasamy has been conferred the Udyog Shree Award
in the year 1990. He has also been awarded the Udyog Rattan
Award by the Institute of Economic Studies in the year 1991.
Milestones
1970
Promotes American Auto Service for manufacture of ElectricHorns.
1972
First to manufacture Servo Brakes for Light Motor Vehicles.
1984
Roots Auto Products Private Limited was established tomanufacture Air Horns.
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Die Casting Unit commences commercial operations.
1988
Polycraft, a unit for Plastic Injection Moulding was established.
1990
Roots Industries Private Limited takes over Electric Horn business.
1992
RMCL enters into Techno-Financial collaboration with M/s. HakoWerke GmbH, Germany.
1992
Roots Industries Private Limited obtains the National Certification -ISI mark of quality.
1994
Production of floor cleaning equipment commences.
Roots Industries Private Limited wins American InternationalQuality Award.
1999
Becomes the first horn manufacturer in Asia to obtain QS 9000
2000
Becomes the first horn manufacturer in Asia to obtain VDA 6.1 andthe first in the world to win ISO / TS 16949
2000
The first to introduce digitally controlled air horns and lowfrequency, low decibel irritation free Jumbo Air Horns.
2003
Roots Industries Ltd., Horn Division is accredited with ISO 14001 :1996
2003
Roots Industries Ltd., upgraded its ISO / TS 16949 from 1999version to 2002 version
2004
Roots Industries Limited (RIL) opens its 100% exclusive Export
Oriented Unit at their Horn Division, Thoppampatti, Coimbatore tocater the needs of Ford North America.
2004
RIL's EOU commences its supplies to Ford, North America
2004
Roots Multiclean Limited (RMCL) inaugurates its 100% EOU Plantat Kovilpalayam, Coimbatore
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2004
Roots Cast Private Limited (RCPL) inaugurates its Unit II atArugampalayam, Coimbatore
2004
Roots Auto Products Pvt Ltd (RAPPL) expands with its MachiningDivision at Arugampalayam, Coimbatore
2004
RIL successfully launches its Malaysian Plant
2004
The group company American Auto Service is accredited with ISO9001 : 2000
2005
Roots Industries Ltd., is certified with MS 9000, a pre-requisite forQ1 award for Ford Automotive Operations Suppliers. Focus onSystems and Processes
2005
Roots Metrology & Testing Laboratory has been accredited byNational Accreditation Board for testing & calibration in the field ofMechanical Linear & Angular
2005
Roots Industries Ltd., is awarded Q1 by Ford Motor Company
2005
Roots Industries Ltd., Horn Division upgraded its ISO : 14001 from
1996 version to 2004 version
1.4VisionWe will stand technologically ahead of others to deliver
world-class innovative products useful to our customers. We will
rather lose our business than our customers' satisfaction. It is our
aim that the customer should get the best value for his money.
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Every member of our company will have decent living
standards. We care deeply for our families, for our environment
and our society. We promise to pay back in full measure to the
society by way of selfless and unstinted service.
1.5Mission
The mission of ROOTS has always been to locate and to
mould exceptional leaders and provide them with all our sincere
effort that stands as the solid basis to extend organizational
solutions to customers worldwide and thereby enhance the
ROOTS competitive advantage.
The ROOTS Company do so through long term and deeply
committed human relations based on the key values like: Activity
focus, Discipline, Experiences, Innovation, Integrity, Introspection,
Professionalism, Quality culture and Team work.
1.6 Roots Group of Companies
1. Roots industries India Ltd Electric horns
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2. Roots Auto Products (P) Ltd Air horns, switches &Controllers
3. Roots Multi-clean Ltd Cleaning Machines
4. Roots Precision Products Dies tools and Jigsfixtures
5. Roots cast (P) Ltd Aluminium and Zinc pressure
6. Roots metrology Laboratory Instrument Calibration,Quality system, Consultancy
7. Roots Polycraft Plastic components
8. R.K. Nature cure home Nature cure therapy, yogaand massages
9. Satchidananda Jothi Nikethan International school
10. Roots Industries Malasia sdn. Bhd Electric Horns
11. Integral Yoga Institute Yoga and
Meditation
1. ROOTS INDUSTRY LIMITED (RIL)
The company is the largest horn manufacturing in India. It
manufactures electric horns and also a wide range of other
products. It is a leading supplier to all major vehicles
manufactures like Mercedes Benz, Telco, TVS motor company,
Kinetic Honda etc.
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2. ROOTS AUTO PRODUCTS PRIVATE LIMITED (RAPPL)
The company is Indias largest air horn company and is a
supplier to sever OEMs like Ashok Leyland, caterpillar, etc; it used
electronically controlled musical horns for the first time in theworld. Its product range includes air horns, switches and
controllers.
3. ROOTS MULTICLEAN LIMITED (RMCL)
The company is a joint venture in techno financial collaboration
with hake Werke GMBH, Germany to manufacture world class
industrial floor care floor cleaning equipments. RMCL is
successfully spread ling the concept of mechanized cleaning in
India and also exports its products to various countries like
Australia, Britain, Germany, Japan, Singapore, etc.
4. ROOTS PRECISION PRODUCTS (RPP)
Roots precision product was established in 1987 to address the in
house tooling needs of the drivers industries in root group.
Owing to continuous improvement and investment into better
resources, the company has become self sufficient .It is catering
to the needs of various industries. RPP acts as a one stop
solution for tooling and precision machining.
5. ROOTS CAST PRIVATE LIMITED (RCPL)
Formerly known as Aruna auto castings private limited and
started in 1984, the company manufactures Aluminum and Zinc
castings for automobiles and textile industries.
6. METROLOGY LABORATORIES
The company is a comprehensive calibration centre in south India
that offers mechanical, electrical, torque, pressure and vacuum
calibration all under one roof.
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7. ROOTS POLYCRAFT
Established in 1988, it manufactures small and medium size
precision plastic components for automotive, pump, textile and
medical industries besides meeting the captive requirement ofroots group.
8. R.K.NATURE CURE HOME
It offers nature cure therapy, yoga and messages. It has treated
thousands of people including eminent personalities from USA,
France, Italy, Singapore gulf countries, Germany and UK for the
past 20 years.
9. SATCHIDANANDA JOTHI NIKETHAN
This school is a Matriculation, English medium, co-educational,
residential public school, secular in nature, which lays emphasis
on our great Indian culture, high moral values and universal
brotherhood. It provides, in addition to high quality education,
excellent facilities for various Co-Curricular Activities, Computer
Education, Art, Yoga, Swimming, Karate, Music, Dance, Ham
Radio and various other club activities
10. ROOTS INDUSTRIES MALAYSIA SDN. BHD
The company manufactures electric horns. As a first step towards
becoming a multinational company, the roots group has begun its
operation in Malaysia.
1.7 A Mini SWOT Analysis
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Strengths
Well established brand name in the market
Having high market share
Consistency in quality of horns
Technical collaboration with Robert Bosch
More number of outlets and availability in market
Well established distribution channel
Ability to cater to low volumes
Weakness
No direct contact with customers
No competitive pricing
Less sales promotion
Opportunity
Tremendous growth of automobile sector
Increase of purchasing power of customers
More number of investments in automobile sector
MNCs focusing on low cost outsourcing opportunities
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Threats
Increase in competitors for horns manufactures
Low sunlight costs for customers
More profit margins offered by competitors to dealers.
1.8 Future plans & Business strategy
Towards a step ahead in Technology innovation an Electronic
Horn with external module with a durability of 0.8 million cycles is
under development and will be launched shortly. Contact lessElectronic horns having durability of one million cycles will be
launched in Indian Market in the near future.
A new 70 diameter horn both trumpet and disc type has
been identified and the development activities are taken up as
per plan. These new innovations will extend the product range
and also satisfy customer requirements.
Reduction in steel thickness through Value Engineering
concepts has been successfully implemented.
The specialized software for APQP and FMEA analysis was
also absorbed to improve the quality of products. Also the
Restriction of Hazardous Substances (RoHS), excellence in
acoustic engineering continuous efforts is made for
standardization of products and components through Continuous
Improvement Projects.
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An exhaustive array of world-class machinery with varying
capacities is employment for meeting the close tolerances with
less than 0.005mm, maximum repeatability with 0.002mm, high
precision and an ability to cater wide range of products. To
extend the limits of excellence particularly to Aerospace andmedical field, a deburring station was introduced as a technology
improvement.
1.9 Company Policies
Quality policy
We are committed to provide world-class products and
services with due concern for the environment and safety of the
society. This will be achieved through total employee
involvement, technology up gradation, cost reduction and
continual improvement in:
Quality of the Products and Services
Quality Management System
Compliance to QMS requirements
Quality will reflect in everything ROOTS does and think
Quality in Behavior
Quality in Human Relations
Quality in Governance
Quality An All Pervasive Entity
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Roots is committed to manufacture customer-centric and
technology-driven products on par with international quality
standards> For example ,the horns manufactured undergo a
rigorous life- cycle test and are subjected to an endurance of over
200,000 cycle of performance while the industry norm requiresonly 100,000.
ROOTS believe in quality culture that goes beyond just
products. Equal emphasis is given to quality in human relation
and quality in service. ROOTS, in its journey towards Total Quality
Management, have reached important milestones: ISO 9001, QS
9000, VDA 6.1, ISOATS 16949 and ISO 14001 Certification,
Presently in the process of obtaining NABL accreditation for our
Metrology lab. The Groups TQM policy has a well-integrated
Quality Circle Movement with active employee participation at
various levels.
Environment Policy
With due concern towards maintaining and improving the
Quality of Life, Roots is committed for sustainable development
by minimizing pollution and conserving resources.
This will be achieved through continual improvement in
Environmental Awareness of all employees and associates, Legal
Compliance and Objective toward Environmental Protection.
Conservation of Energy
Predominantly all the power intensive individual load centershave been identified and appropriate capacity Variable Frequency
Drives have been installed.
Lighting loads have been converted as electronic ballast in
place of copper ballast as an energy saving measure.
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As energy conservation measure, Compact Fluorescence
Lamps (CFL) and other energy efficient luminaries/lamps have
been installed at various location within the factory premises.
People - Our Valuable Asset
Roots have a strong people oriented work culture that can
be seen and felt across all its member concerns. Whether they
work in group or in isolation, their effort is well appreciated and
achievements well rewarded. They have a sense of belonging and
they revel in an environment of openness and trust. Cross-
functional teams function as one seamless whole and foster thetrue spirit of teamwork.
Roots as a learning organization systematically train its
employees at all levels. Conducted in-house, the training
programs equip them to meet new challenges head on.
Employees are encouraged to voice their feelings, ideas and
opinions. There is a successful suggestion scheme in operation
and best suggestions are rewarded.
Lasting relationship will evolve only when people know that
their work is valued ant that they contribute meaningfully to the
growth of the organization. At Roots, people across the group
companies, through interactions at workshops and seminars, get
to know each other individuality, share their common experiences
and learn something about life.
Personal Culture
The management has been encouraging and promoting a
very informal culture. Personal touch, sense of belonging,
enabling employees to become involved and contribute to the
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success of the company. The top management also
conscientiously inculcates values in the people.
Work Environment
Special and conscious efforts are directed towards
housekeeping of the highest order. Renovation and modernization
of office premises and office support systems are carried out on
an going basis.
Roots have a strong people-oriented work culture that can
be seen and felt across all its member concerns. Whether they
work in group or in isolation, their effort is well appreciated and
achievements well rewarded. They have a sense of belonging and
they revel in an environment of openness and trust. Cross-
functional teams function as one seamless whole and foster the
true spirit of teamwork.
Training
Roots believe in systematic training for employees at all
levels. As a part of the Organizational Development efforts,
training programmes are being conducted in-house, for
employees at all levels. The training programmes equip them to
meet new challenges head on. Employees are encouraged to
voice their feelings, ideas and opinions. There is a successful
suggestion scheme in operation and best suggestions are
rewarded. In addition, staffs are also sponsored for need basedtraining programs at leading Management Development
Institutes.
Total Quality Management
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Customer Focus is not merely a buzzword but it has become
an important factor of every day work and has got internalized
into the work environment. There is an equal emphasis on
internal customer focus leading to greater team efforts and better
cross-functional relationship.
Quality Circle Movement
To ensure worker participation and team work on the shop-
floor, Roots Industries Limited has a very effective Quality Circle
Movement in the organization. As on today Roots Industries
Limited has 3 operating Quality Circles having 24 members and
some of them have won awards at different conventions and
competitions.
Through interaction with workmen in these sessions, a
process of 2-way communication has been initiated and valuable
feedback has been received on worker feelings, perception,
problems and attitudes. Simultaneously management has
communicated the problems faced by them and the plans to
overcome these problems.
Engineering Research Centre
The Engineering Research Centre (ERC) is involved in the
continuous improvement and enhancement of design to increase
performance and reliability. The ERC functioning under three
distinct heads cater to the needs of Roots Industries, RootsMulticlean and Roots Auto Products.
Though there is a three-pronged operational ethos, the ERC
is integrated and meshed seamlessly with one single objective:
that of design research and performance monitoring. Through
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extensive product engineering, the ERC cell of ROOTS achieves
the following:
Designing and developing new products with customer
focus.
Conducting required tests to ensure product reliability.
Initiating necessary corrective and preventive action for
ensuring peak performance
Fine-tuning products with available components to satisfy
customer requirements
The ERC consists of the best talent that includes engineering
graduates, ITI brains and design engineers. The team works with
top-notch tools like
Proe2000i2 - for solid modeling
AutoCAD 2000 - for Drafting
CorelDraw V 8.0 - for Graphical Applications
Global Alliances
Roots is a leading Original Equipment supplier to major
vehicle manufacturers like Mercedez Benz, Mitsubishi, Mahindra &
Mahindra, Toyota, Fiat, TELCO, TVS, Kinetic, etc. The ever
demanding requirements of Customer Satisfaction has
strengthened the R & D activities and increased Roots technical
competence to international standards.
Roots Multiclean Ltd. (RMCL) is a joint venture with Hako
Werke GmbH & Co., Germany, one of the largest cleaning
machine manufacturers with global operations. RMCL is the sole
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representative in India and SAARC countries for Hako Werke's
entire range of cleaning equipment. The quality of RMCL products
is so well established that Hako buys back a major portion for
their global market.
RMCL also represents several global manufacturers of cleaning
products and is gearing itself up to provide customized, total
cleaning solutions.
Good Morning Assembly
The management aims in operator's mental & physicalfitness and it is ensured through the GMA. The operators and shift
supervisor, assemble before the 1st shift beginning and do
occupation of fitness exercise, discuss about the Quality Safety &
Production aspects of the previous shifts and take Quality / Safety
oath.
Through interaction with workmen in these sessions, a
process of 2 way communications has been initiated and valuable
feedback has been received on worker feelings, perception,
problems and attitudes. Simultaneously management has
communicated the problems faced by them and the plans to
overcome these problems.
Lasting relationship will evolve only when people know that their
work is valued and that they contribute meaningfully to thegrowth of the organization. At Roots, people across the group
companies, through interactions at workshops and seminars, get
to know each other individually, share their common experiences
and learn something about life.
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