Delphi-TVS (DTVS) which started operations by setting up its first unit in 1990 to make diesel fuel injection system has been registering consistent growth for over 20 years. The stiff competition in the initial years was successfully overcome with timely improvement in technology and product quality.
The company has now three manufacturing facilities. While the Mannur and Uttarkhand plants are dedicated for manufacture of the Rotary-FIE system, the Oragadam plant specialises in Common Rail System. The company today is an acknowledged supplier of fuel injection system for both cars and commercial vehicles.
Addressing the DTVS Founders Day at Mannur, Mr. J.S. Chopra, its President, referred to how the Founder, T. V. Sundaram Iyengar, who started business a 100 years ago in 1911, was driven by vision, passion, commitment and values. These virtues contributed to a large extent in making the TVS Group grow to more than 54 companies with a turnover in excess of Rs. 30,000 crores.
He said that DTVS’ state-of-the-art Tech Centre at Mannur supports the customers’ engine and vehicle development programmes. In the current environment of changing emission norms, growing competition and customers launching new models with shorter lead times, the Tech Centre provided a closer customer interaction and support.
While industry majors like Tata Motors, Ashok Leyland, Mahindra & Mahindra, TAFE and Escorts are busy expanding their operations, many multinational automobile manufacturers have set up plants in India and more are planning to do so. As a part of globalisation, Indian companies too are expanding their businesses through acquisitions and mergers, both domestic and overseas.
Again, the Indian automotive industry has acquired global characteristics, and the OE customers will expect global performance in all respects from Tier 1 suppliers. The total production volume, including passenger vehicles, SCV/LCV and heavy commercial vehicles, is expected to touch three million this year. ACMA and SIAM forecast a volume of 7 million by 2015 and 10 million by 2020. The tractor volumes, presently at half a million per year, is expected to double by 2020. All this will make India the world’s second fastest growing auto market and the sixth largest automobile industry after China, the US, Germany, Japan and Brazil.
Mr. Chopra further observed that diesel cars are almost 45 per cent in the passenger car segment, while SCV/LCV/HCV/tractors are 100 per cent diesel. To take full advantage of this potential, there is need to meet customers’ expectations in areas like shorter development lead time, global quality standards, competitive pricing, JIT delivery and after-market support.
There is need to improve operational efficiencies through constant expansion of activities and elimination of waste, as also to focus on power consumption as the power cost has almost doubled in the last three years.
He was happy to share on the occasion that there has been a significant increase in the level of participation and quality of presentation in both the SGA and Suggestions Scheme, as well reflected in Delphi-TVS winning the CII Kaizen Award, ACMA Kaizen Award and the Poka-Yoke Outstanding Award.
Mr. Chopra concluded saying: “If we have to succeed in this competitive environment, we need to rededicate ourselves and make changes as a way of life. We also need to constantly benchmark ourselves with the world’s best practices.”
In his address, Mr. R.C. Banka, President of TAFE, the fastest growing Indian tractor manufacturing company of the Amalgamations Group, who was the chief guest on the occasion, paid rich tributes to T. V. Sundaram Iyengar who started his business career at the age of 35 by forming a bus company in Tamil Nadu in 1922. Since then, he never looked back, and kept expanding business in the automobile field. The TVS Group today is one of the largest manufacturers of quality automobile components.
Mr. Banka particularly referred to the rapid growth of the four-wheeler segment since 2005-06 in the presence of MNCs both in car and commercial vehicles. It is bound to grow further in the next 5-10 years. The two-wheeler segment is also expected to grow from the present 17 million to 34 million units by 2020 and cars and LCVs from 3 million to 10 million.
He also expressed happiness over his long association with the TVS Group companies like Lucas-TVS, Sundaram Clayton, Wheels India, Axles India, Brakes India and Sundram Fasteners.
Mr. T.K. Balaji, Managing Director, Delphi-TVS, in his address, complimented the excellent role of the company workers in its accelerated growth over the years.