Amity Business School

Market Demand and Supply Analysis of Bearings by taking automobiles

manufactured in India into consideration.

Amity Business SchoolIntroductionIntroduction

Bearings are mechanical device. They are basically used to ease friction between moving parts. They are also used to carry load in certain industries such as those that handle materials. They are used in rotating parts of virtually all machines and automobiles

STUDY

Identifying and forecasting market demand of bearings

How market demand of bearing is derived from automobiles

What are the applications of bearing in two wheeler segment

Identifying and forecast NEI’s share in supply of bearings

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Amity Business SchoolLiterature ReviewLiterature Review

India now(2010)

There are 12 large and medium units which together turn out over 100 million bearings

every year.

Bearing companies in India are starting to focus on the export market.

The largest user segments of bearings in India are the auto industry, the industrial OEMs

segment, and the replacement market. .

Cygnus Business consulting & research (February 2007) Indian bearings industry was worth Rs.33 billion in 2005.

domestic industry caters to 70% of the demand, balance 30% is met through imports.

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Amity Business SchoolLiterature ReviewLiterature Review

BMS (2004)

Organized sector of bearing comprises of 12 leading manufacturers who contribute to

over 55% of the total turnover.

Most of the big players are having either technical or financial collaboration with leading

auto manufacturers

The unorganized sector players have a strong regional presence and mainly cater to the

needs of the replacement market

There are a large variants of imported bearings, each holding a small market share in

India

China, Russia, and Eastern Europe dump their excess production at a very low rate.

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Amity Business SchoolIndustry Profile

Indian bearing industry

• Rs.57 billion.[Automobile & Industry]

2 segment

• Domestic [Organized and unorganized]

• Imports.

OEMs

NBC Bearings, FAG Bearings, SKF India, NRB Bearings, Timken India & ABC Bearings

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Amity Business SchoolCompany ProfileCompany Profile National Engineering Ltd. Is Aditya Birla group venture.

National Engineering Industries ltd., the renowned industrialist, late Shri B.M. Birla, under the name of “National Bearing Company Limited”, founded jaipur in the year 1946 as a pioneer industry in the field of bearing manufacture

User of NBC bearings

•Automobiles

•Electric Motors

•Railway wagon

•Heavy Engineering Plants

•Thermal Power Plants

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Amity Business SchoolCompany ProfileCompany ProfilePRODUCTS RANGES OF BEARINGS MANUFACTURED AND EXPORTED UNDER THE TRADE MARK OF NBC INCLUDES•Ball Bearings •Tapered Roller Bearings •Cylindrical Roller Bearings •Axle Boxes Spherical •Roller Bearings •Cartridge Tapered Roller Bearings • Large Diameter Special Bearings

Collaborations

Federal Mogul Corporation, USA and NTN Corporation, JAPAN

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Research Methods And Research Methods And ProceduresProcedures

Research Design adopted in this study is DESCRIPTIVE research .

OBJECTIVES

•To identify and forecast the market demand of the bearing

•To identify and forecast NEI’s share in supply of bearings.

•To know the applications of bearing in two wheelers vehicles of different companies

Primary data Collection is done by visiting dealers, company showrooms etc..

Sample Size of 12 was taken.

Participants were work managers , store managers and technicians in Jaipur(rajasthan).

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Results & Main FindingsResults & Main Findings

How Demand is derived from automobiles

2007-08 11,25,22,231

2008-09 14,06,52,830

2009-10 18,28,48,693

2010-11 24,68,45,842 9

Market Demand of Bearings derived from Automobiles for 2010-11 (In Volume)

Type of Vehicle(A)

Unit Produced(B)

Ball bearing(C)

Tapered Roller Bearings(D)

Total bearing(E)(E=C+D)

Bearing Demand(F)(F=B*E)

2 Wheelers 1,33,76,451 13 - 13 17,38,93,863

3 Wheelers 7,99,553 13 - 13 1,03,94,189

Cars 24,53,113 9 3 12 2,94,37,356

Utility Vehicles 3,18,576 7 13 20 63,71,520

MPV 2,15,607 9 3 12 25,87,284Commercial Vehicles

7,52,735 4 14 18 1,35,49,230

Tractor 5,30,620 11 9 20 1,06,12,400

Total 1,84,46,655       24,68,45,842

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Results & Main FindingsResults & Main Findings

Share of bearing supply by different OEMs in India for year 2010-11

2007-08 17%

2008-09 18%

2009-10 20%

2010-11 23%10

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Results & Main FindingsResults & Main Findings

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MANUFACTURER HONDA (HMSIL)

Vehicle Model TWISTER

Application Bearing No. Size Qty.

Starting Clutch 91011-KWS-901 6201 1

Starting Clutch 96100-62000-00 6200 1

Crankshaft 91001-KWS-901 63/22 1

Transmission 91004-KWS-901 6201(FAG) 1

Transmission 91005-KWS-901 6001(FAG) 1

Transmission 91006-KWS-902 6203(NSK) 2

Front Wheel 96140-63010-10 6301U 2

Rear Wheel 96140-63010-10 6301U 1

Rear Wheel 96150-62030-10 6203UU 1

Rear Wheel 96140-63010-10 6301U 2

TOTAL 13

Amity Business SchoolResults & Main FindingsResults & Main Findings

In Automobile sector largest share of demand comes from two wheeler

segment manufactured in India.Market demand of bearings from automobiles is expected to grow by 40% this year.NEI’s share in supply of bearing is expected to grow by 20% this year.Due to technical advancement no. of bearings used in a vehicle are decreasing.

LimitationsProvides demand coming from automobiles only.Demand derived from automobiles that are manufactured in India only.Supply includes only one OEM.

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Amity Business SchoolRecommendationsRecommendations

1. NBC should try to increase their supply in Indian market as total demand is expected to increase by 40% whereas NEI’s market share is expected to increase by 20% only.

2. OEM’s should collect demand data of automobiles companies on time so that calculation of demand can be done on time.

3. NEI should send their product catalogue to all automobile companies, so that they will know about NEI and their product as well as to get orders.

4. NEI should try to make brand awareness in customer’s eyes to increase replacement demand.

5. Bearing is still not considered as an important part in vehicles, OEMs should try to convey its importance to Vehicle users.

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