N. K. Minda, MD, NK Minda Group
B&E: What do you think are the major challenges that this
industry is facing?
NKM: The challenges that the auto component industry is facing is the same as what the Industry is facing in general. This include rising raw material prices, slowing demand due to high interest and oil rates, rising manpower cost, attrition and resultant squeeze in margins.
B&E: What is Minda’s next step?
NKM: At Minda, export is an ongoing thrust area, our exports which were at 10% a couple of years ago are today at 18%. Our export thrust is not dictated by a slowing domestic demand but is a conscious decision on our part where we are aiming at 25% of our group revenues coming from exports. We were the first company from the auto sector to set up a plant in Indonesia and are actively exploring setting up plants in Vietnam, Uzbekistan and Brazil. As far as competition is concerned, it only serves as a reminder to us that we have to constantly innovate and offer better value to our customers in order to retain their trust.
B&E: What is your R&D expenditure? Do you have a presence in foreign locations?
NKM: We are at presently spending 3% of our annual turnover on R&D and the aim is to gradually take this up to 5%. We have a plant in Indonesia and are exploring the option of setting up plants in Vietnam, Uzbekistan and Brazil in the next 2-3 years. We have overseas offices in Turin, Vietnam, China, Italy and Japan.
B&E: What do you think are the major challenges that this
industry is facing?NKM: The challenges that the auto component industry is facing is the same as what the Industry is facing in general. This include rising raw material prices, slowing demand due to high interest and oil rates, rising manpower cost, attrition and resultant squeeze in margins.
B&E: What is Minda’s next step?
NKM: At Minda, export is an ongoing thrust area, our exports which were at 10% a couple of years ago are today at 18%. Our export thrust is not dictated by a slowing domestic demand but is a conscious decision on our part where we are aiming at 25% of our group revenues coming from exports. We were the first company from the auto sector to set up a plant in Indonesia and are actively exploring setting up plants in Vietnam, Uzbekistan and Brazil. As far as competition is concerned, it only serves as a reminder to us that we have to constantly innovate and offer better value to our customers in order to retain their trust.
B&E: What is your R&D expenditure? Do you have a presence in foreign locations?
NKM: We are at presently spending 3% of our annual turnover on R&D and the aim is to gradually take this up to 5%. We have a plant in Indonesia and are exploring the option of setting up plants in Vietnam, Uzbekistan and Brazil in the next 2-3 years. We have overseas offices in Turin, Vietnam, China, Italy and Japan.
B&E: What kind of opportunities exist for the Indian component industry in foreign markets?
NKM: Indian auto component industry is today emerging as one to be reckoned with. With more and more global auto majors setting up manufacturing facilities in India, the Indian auto component sector is getting exposed to internationally accepted manufacturing practices. However, concerns about quality still remain. Also, we are still lacking in original research & development activities. But slowly I am sure that these issues will get resolved and India’s potential of emerging as the global auto hub will also be realised.
B&E: What effects has the rupee appreciation had on the company?
NKM: The Indian rupee has been depreciating in the recent past rather than appreciating. We typically have clauses in our export import orders wherein foreign currency fluctuation beyond a certain limit are factored in. Our exports are largely to Europe and are Euro denominated, so we have been relatively insulated from dollar fluctuations.
B&E: In terms of profitability, market share or turnover, what are the plans?
NKM: The NK Minda group has crossed the Rs.10 billion turnover mark and our next aim is to triple this turnover to Rs.30 billion crores in the next 3-4 years. In terms of profitability we are in challenging times and the aim is to increase our net margins to 10%, so that we can justify the faith of our stakeholders. Today we have roughly 70% market share in off road switches, 50% share in four wheeler switches, 40% market share in horns, 70% market share in CNG/LPG kits, 15% market share in automotive lighting. Besides this we are into EOVM (Electronic over view mirrors) and automotive batteries where we have just entered. The plan is to have domestic leadership in all product categories where we are not the leaders in the next couple of years.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
NKM: Indian auto component industry is today emerging as one to be reckoned with. With more and more global auto majors setting up manufacturing facilities in India, the Indian auto component sector is getting exposed to internationally accepted manufacturing practices. However, concerns about quality still remain. Also, we are still lacking in original research & development activities. But slowly I am sure that these issues will get resolved and India’s potential of emerging as the global auto hub will also be realised.
B&E: What effects has the rupee appreciation had on the company?
NKM: The Indian rupee has been depreciating in the recent past rather than appreciating. We typically have clauses in our export import orders wherein foreign currency fluctuation beyond a certain limit are factored in. Our exports are largely to Europe and are Euro denominated, so we have been relatively insulated from dollar fluctuations.
B&E: In terms of profitability, market share or turnover, what are the plans?
NKM: The NK Minda group has crossed the Rs.10 billion turnover mark and our next aim is to triple this turnover to Rs.30 billion crores in the next 3-4 years. In terms of profitability we are in challenging times and the aim is to increase our net margins to 10%, so that we can justify the faith of our stakeholders. Today we have roughly 70% market share in off road switches, 50% share in four wheeler switches, 40% market share in horns, 70% market share in CNG/LPG kits, 15% market share in automotive lighting. Besides this we are into EOVM (Electronic over view mirrors) and automotive batteries where we have just entered. The plan is to have domestic leadership in all product categories where we are not the leaders in the next couple of years.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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dedicated facilities, designed innovative packaging, offered aggressive pricing and delivered quality second-to-none. Still, a few major accounts dumped us. Is costumer loyalty dead? (Carl Warren, Ridgefield, Conn.) Ans: Not dead, but different. Time was, you could “earn” a customer’s loyalty with tickets to a big game, a Disney World vacation or even a nice dinner a few times a year. And you could pretty much keep that loyalty with what used to be called belly-to-belly selling, or put less graphically, relationship building.
have to make a choice, which Kohlberg Kravis Roberts & Co. L.P. (KKR) has now done. The company has entered into a contractual agreement with KKR Private Equity Investors LP (KPE) providing for acquisition of all assets and assumption of all liabilities, of KPE by KKR. After this happens, KKR will become publicly listed on the New York Stock Exchange (NYSE), heralding another landmark incidence of a PE firm taking the public route.
is, in reality, ‘a curse in disguise’. The bill has been cleared by the Senate, saying that it would rescue America’s cash-strapped home buyers and borrowers, but it would do more harm than good. The huge package that Bush signed into a law aims at safeguarding the nation’s two biggest mortgage companies, Fannie Mae and Freddie Mac. It also plans to save an estimated 1.5 million families from going on the streets. As per the new law, the Federal Treasury can save the two mortgage companies if and when they are about to collapse, by spending billions of dollars of taxpayers’ money, besides providing financial help to an estimated 400,000 troubled families by replacing their loans with subsidised government loans.
[which eventually became one of the world’s most versatile and successful fighter aircraft], little did it know that this nuclear-capable strike aircraft that can literally wipe out a city would one day be termed as a tool for fighting terrorism. And if the respected Mr. George W. Bush is to be believed, these aircraft are such a potent force in the fight against terrorism that Pakistan would desperately need a diversion of funds to the extent of $230 million for the ‘upgrade’ of its ‘ailing’ fleet of F-16s from the Foreign Military Fund (FMF), which otherwise could have been used to strengthen the counter terrorism expertise of Pakistani forces engaged in the Afghan-Pakistan border. This is in addition to the 36 new F-16s that Pakistani Prime Minister, Yusuf Raza Gillani (extreme left) has engineered from the US. That the $230 million ‘upgrade’ money will be diverted to causes other than aircraft maintenance is a bygone diplomatic finality. That the upgraded F-16s can be well used to deliver bombs on ‘civilian’ territories speckled with spartan ‘terrorists’ resulting in more civilian casualties than terrorist ones, is a fact well proven in the past. But that these aircraft can be put to immediate use to show excessive love to Pakistan’s neighbours [Did someone whisper India?], is something that suspiciously seems to be the primary reason these F-16s are being bought in the first place.
That was the time when we decided to enter into security and wireless areas in a big way and formed incubation within our teams, which basically focussed on small virtual teams used to look at specialist technologies. In the next 3-4 years, the focus was on operational excellence. But achieving that was a problem because not only were we growing as a team but we were also growing as an eco-system. All along this while, new market verticals started developing like BPOs and call centres. The service provider market was highly de-regulated (BSNL being one of the exception). That was when ISP market opened, which brought in huge growth for us. The next phase for Cisco began when India got recognised as a global hub of activities. The Indian IT industry then became more visible outside the country. And Cisco India was playing a significant role not only due to the growth that we were seeing in this market but also because of some of the innovations we were deriving out of here.
when he was resting, he thought of a place where, as an ordinary human being, he would like to relax, a place free of the thrust and parry of daily rivalries, a place where relaxation will be the deserved reward of six days of toil, where indulgence will be free of guilt and each pleasure will be a trophy well deserved... Come to Bora Bora and feel the bliss of a well earned holiday, a place where you would feel like swallowing the sun and drinking the sea. Bora Bora is an island paradise about 160 miles northwest of Tahiti, undoubtedly, one of the most beautiful islands in the world. Bora Bora’s most spectacular facet is its azure, jewel-toned lagoon and the twin peaks which stick out from it forming a gorgeous view.
the European Union today proudly brags about being one of the strongest political communities with 27 member countries (and many more nations wanting to join the league). With the very recent pro-European victory in Serbia, do we see Serbia joining the leagues of the rest of the Balkan countries to become an EU-certified entity? If that were to happen, there’s one nation that wouldn’t really be amused – Russia (oopsssss...); what with Russia lending a hand to Serbia while dealing with the fragile Kosovo situation (although the objective of being such a Good Samaritan was purely economic considering trade between the two touching $2.7 billion and of course with the more recent Energy Co-operation Agreement between them).
Martha Raddatz about polls showing that an overwhelming majority of US citizens oppose the war in Iraq, he replied, “So?” “So – you don’t care what the American people think?” Raddatz asked. “No,” Cheney replied, and explained, “I think you cannot be blown off course by the fluctuations in public opinion polls.” Later, White House spokeswoman Dana Perino, explaining Cheney’s comments, was asked whether the public should have “input.” Her reply: “You had your input. The American people have input every four years, and that’s the way our system is set up.” That’s correct. Every four years, the Americans can choose between candidates whose views they reject, and then they should shut up.
latest at PepsiCo. This $115.6 billion giant (nyse), which today commands an incredible global market share of 31.1% (as per Beverage digest) has fallen in love with a healthy, juice producing Russian company, christened ‘JSC Lebedyansky’ (world’s sixth-largest juice manufacturer). The marriage dowry however is ‘beyond’ fair at $1.4 billion for a 75.53% stake in Lebedyansky.
it had to go the right way… the fact that sports is getting privatised and the most popular sport – cricket is getting privatised; it’s a whole new sense of opportunity for not just us but for every sportsperson who’s interested in the game. Also, India has a population of one billion and only one cricket team till now. There are so many talented cricketers, and young talent that needs to be discovered.