After visiting the distributors of Federal Mogul India in Chennai, Delhi, Jaipur and Mumbai, MOTORINDIA went to the capital of East India, Kolkata. Also considered as the City of joy by intellectuals, it accounts for 15 per cent of the domestic automotive aftermarket in the country. Quite unique when compared to their peers in other cities, the distributors in the city consider themselves as an extended family of the American auto component giant and are very happy to be representing the company in the region. With the country’s automotive industry showing signs of recovery of late, the aftermarket should also get bustling with more activity than currently in the months to come.
We started the day by visiting Federal Mogul India’s oldest and the most indispensable distributor J.J. Automotive which was floated by. Mr. K.P. Jhunjhunwala, who is incidentally the past President of the Federation of Automobile Dealers Association, Motor Industries Association and the Indian Roads and Transport Development Association. Currently, J.J. Automotive is running six branches in Eastern India, at Kolkata, Cuttack, Ranchi, Patna, Siliguri and Guwhati, with another one underway in Asansol. The outfit serves close to 15,000 retailers across the region. Among its key product lines under the Federal Mogul portfolio, piston sales are the highest volume puller with rings coming at No.2. The remaining numbers are derived from Champion plugs and Ferodo brake linings.
Out if its total sales, the CV segment accounts for a maximum chunk of the business at 50 per cent, followed by two-wheelers and then passenger vehicles. The company is expecting good business from the CV segment once the coal and mining sectors open up.
Mr. K.P. Jhunjhunwala, Chairman, J.J. Automotive, revealed: “I was in the automotive business since 1956 selling Lambretta scooters. Then, in 1959, I became an authorized distributor of Federal Mogul (through one of its earlier companies), so it is almost 60 years that I am associated with it. Our experience with them has been overwhelming and the quality of Federal Mogul is second to none.”
Talking about the current scenario of the automotive aftermarket in the region, he noted: “Eastern India accounts for 15 per cent of the overall Indian automotive aftermarket as these are underdeveloped States (as compared to Northern and Southern Indian States). Having said that, our focus will remain on the Eastern aftermarket as there are plenty of green shoots ahead.”
Sharing his experience with Federal Mogul, Mr. Jhunjhunwala noted: “Our experience with the company has been very good. The aftermarket business has turned out to be very lucrative as our company is doing roughly Rs. 80 crores annual turnover, of which Federal Mogul contributes a significant share, mainly because of its excellent market support to us, which is also why we are working closely with it for decades. The day will not be very far when the automotive business will itself fetch us Rs. 100 crores business annually. We are growing at 10 per cent every year and are hopeful that our business with Federal Mogul will grow further.”
Among the new product lines, J.J. Automotive will be rolling out Ferodo brake linings for the CV segment while it is also planning to bring in coolants and brake pads. “The upcoming products are superior in quality, which is why they are priced higher. Going forward, it will be a big growth driver for us in the next two to three years, more so because our customers are evolving in terms of using high-quality durable products.”
Moving on to the second major distributor, National Auto Links (NAL) located at Princep Street, the mecca of the automotive aftermarket in Eastern India. Catering to 20 retailers, the company was floated more than 25 years ago by Mr. Jagjit Singh Chandok and is primarily into pistons, piston rings and cylinder liners which cater to the entire range of sub-segments in the CV industry. The firm makes a total turnover of Rs. 35-40 crores every year and expects Federal Mogul’s contribution to shoot up manifold with the implementation of Euro-III and Euro-IV emission norms in the country. NAL is also hopeful of resurgence in sales volumes once the market opens up further.
Mr. Haronkar Singh Chandok, (left), and Mr. Chiranjeev Singh Chandok
Mr. Chandok shared: “My late father started our association with Federal Mogul at Ranchi, and in 1987 we saw great potential in the Eastern market which is when I decided to shift base to Kolkata and started this outlet.”
Talking about the USPs of its principal’s product portfolio, he added: “Federal Mogul is known for its variety, durability and serviceability. Their gift coupon concepts are also very well appreciated in the market. We are very happy with the world-class quality products which can feed the entire market for LCVs, MCVs and HCVs of various OEMs. We are now going beyond engines and are looking to launch gaskets too.” Federal Mogul Motorparts would be launching gaskets under the Payen brand in May this year.
Referring to its future course of actions, he stated: “We are going online and are betting big on e-commerce. Earlier bulk buying was done, but now hoarding is practically impossible. Consumers are getting more knowledgeable and we are bracing ourselves accordingly.”
We walked a few yards ahead of the NAL outlet to reach the Pankaj Chawla-run Merck Spares India which is primarily into main bearings, serving around 200 retailers in the region and is consistently increasing its reach.
Mr. Chawla shared: “This establishment was started by my father K.K. Chawla, and I joined the business in 1989 as a second generation entrepreneur. Our association with Federal Mogul goes back to 2009. We are basically into engine spare parts, i.e., main bearings, and connecting for all segments barring two-wheelers, of which the HCV segment gives us the maximum volume. We are very happy with Federal Mogul all these years as they have a good product range and their aftermarket service quality is world-class. They have a good network and excellent reach. Moreover, they offer interesting schemes from time to time. Going forward, we are planning to add gaskets to our portfolio by May when it is launched by the company.”
Finally, we drove down to our last stop to meet Mr. S. Burman of Burman Trading Company. Incidentally, he had retired from Federal Mogul a few years back as a result of which the company and its product portfolio are very close to his heart. However, unlike his peers, he has consciously decided to focus on non-engine products for the East Indian market. Currently, Burman Trading sells wiper blades, Glyco engine bearings, coolants, brake linings, which accounts for its maximum share of business, and brake pads. It has begun its business in the CV segment primarily and will cater to the PV segment after five months. Within two years of its business, it is already catering to a chain of nearly 100 retailers in West Bengal.
Mr. Burman observed: “I floated this business two years after retirement from Federal Mogul and have decided to focus mainly on non-engine product lines until now. It has been a very good experience in the last year or so as I was myself involved with these product lines. Moreover, I had a service-related background at the company, so we’re more like an extended family with Federal Mogul. We are not much concerned about cheaper parts as the market is quite organized here with most of our customers buying from us on a regular basis.”
With the Government focusing on opening up key sectors like the mining and coal industries, all the distributors are unanimously confident that things would look up in the near future. Like most other stakeholders in the automotive industry, they are also looking forward to the GST implementation which will do away with the uneven tax structure in different States. They are also keeping their fingers crossed in anticipation of a major thrust on infrastructure development by the government which would pave the way for auto industry growth and in turn boost prospects in the aftermarket as well.