company profile of riil

8/8/2019 Company Profile of RIIL

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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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company profile of riil

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