Rane Madras Ltd. (RML), the flagship company of the Rane Group, stepped into the 76th year of its dedicated service in the Indian market. The company, known for its manufacturing excellence, makes steering and suspension linkage products and steering gear products for passenger and commercial vehicles as well as farm tractors. The company has been regularly receiving rewards and recognitions for its continuous product improvements and innovations.
In an exclusive interview with Ms. Gowri Kailasam, President, Steering and Linkage Products, RML, we find out more on the company’s focus on total quality management (TQM) and its core strengths.
“RML has been continuously improving over the last five years. We focus on the culture of our employees who work relentlessly and have been showing constant improvement, which is the key to our success. After the implementation of TQM, our productivity improved, equipment utilisation was enhanced, product quality improved and the new product timeline reduced. Overall, our response to customers was much better than before. It’s a holistic approach which touches every individual who is part of the company. All these initiatives led us to receive the ‘Deming Application Prize’ in 2007. After winning the DAP, the company did a self-diagnosis of all the areas of improvement, and as a result we were able to achieve the prestigious ‘Deming Grand Prize’ in 2012”, says Ms. Gowri, the first lady President.
As a result of its unique TQM approach, RML has brought down the PPM level across all its plants from around 300 five years ago to an impressive figure of 20 at present.
RML is one among the 25 companies at the global level to be awarded the DGP over the past two decades. The company has also won awards for 2012-13 like the ‘Over All Performance Award’ from Tata Motors, ‘Best Supplier Award’ from TAFE for overall performance, and the award for superior performance in the field of quality and delivery improvement from Maruti Suzuki. Also received is the MMA Award for Managerial Excellence in June last. These awards, Ms. Gowri says, drive the company’s workforce and keep its morale high.
Referring to RML’s future investments, Ms. Gowri observes: “We are making prudent investments. Since there is a lot of competition from international players in the component industry, our focus is more on R&D. We are working on product innovation in hydraulics for farm tractors, hydrostatic units and hydraulic cylinders. We are also looking at catering to niche markets such as golf carts and ATVs where we see huge potential.”
In its initial years, the company was largely dependent on the Indian market, especially the OEM segment, but gradually started focusing on the export market as well. It has had strong trade relations with the US, European nations, Japan and Thailand, the latest additions being Brazil and China. The greater focus on these markets resulted in a 20 per cent growth in exports last year.
With the country’s automotive industry going through an acute slowdown over the last year-and-a-half, most companies are utilising this phase as an opportunity to strengthen inherent capabilities by working on new product development and innovations. RML’s specific R&D focus areas include product technology for mechanical rack and pinion for deploying with electric power steering (EPS), with focus on attenuating friction and noise, development of EPS for small commercial vehicles and farm tractors, hydraulic products for farm tractors, commercial vehicles and off-road vehicles, ball joints for vehicular suspension application and compact steering for low hp farm tractors.
Nearly 60 per cent of RML’s turnover is from the OEM segment, while exports and aftermarket make up for the balance. Accounting for close to 23 per cent of its turnover, RML is a major contributor to the Rane Group’s growth.