A STUDY ON COMPETATIVE ANALYSIS OF MECAPLAST (INTERIOR PARTS) IN AUTO COMPONENT MANUFACTURING INDUSTRY
Submitted to the
SRM SCHOOL OF MANAGEMENT
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINSTRATION
Under the guidance of
Ms. Nisha Ashokan, Asst.Professor (S.G)
SRM SCHOOL OF MANAGEMENT
KATTANKULATHUR 603 203
SRM SCHOOL OF MANAGEMENT
Department of Management studies
FINAL PROJECT REPORT
MARCH 1ST, 2014 TO APRIL 30TH, 2014
This is to certify that the project entitled
A STUDY ON COMPETATIVE ANALYSIS OF MECAPLAST (INTERIOR PARTS) IN AUTO
Is the bonafide record of project work done by
Aswin Kumar S
Register No: 3511210181
of MASTER IN BUSINESS ADMINISTRATION during the year
2012 – 2014
———————- ———————————– Project Guide Head of the Department
Submitted for the Project Viva-Voce examination held on
Internal Examiner External Examiner
I affirm that the project work titled A STUDY ON COMPETATIVE ANALYSIS OF MECAPLAST (INTERIOR PARTS) IN AUTO COMPONENT MANUFACTURING INDUSTRY being submitted in partial fulfillment for the award of MBA (Master of Business Administration) is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.
(Signature of the Candidate)
Aswin Kumar S
The materialization of this report has witnessed innumerous contributions from numerous people in the form of selfless criticism, valuable suggestions and above all power packed words of motivation.
I would like to express my sincere thanks to Dr.Jayashree Suresh, Dean, SRM School of Management, Chennai who has been generous in providing all necessary facilities in carrying out Master of Business Administration program.
I am grateful to Dr. V.M.Ponniah, Academic Associate, SRM School of Management, for his constant support throughout the duration of study.
I would like to express my sincere thanks and gratitude to my internal guide Ms. Nisha Ashokan, Asst.Professor (S.G), SRM School of Management, Chennai, for his timely and valuable help for the successful completion of the project.
I wish to take this opportunity to thank Mr. A. Senthil Raja, Manager Marketing & Sales, Mecaplast, Chennai, for his profound guidance and encouragement throughout the project.
I express my gratitude to my beloved parents for their constant encouragement during the period of my project work.
The study has been taken on the topic “A Study on competitive analysis of Mecaplast (Interior Parts) in Auto component manufacturing industry, to analyze the competitive position of Mecaplast, the strength and weakness of its competitors and identifying the areas which require attention to improve their service.
This paper analyses the determinants of competitiveness of Mecaplast in auto industry sector over their competitor, based on an observation through Internet and a quantitative analysis of secondary data.
The collected data was analyzed using various tools like Company profile Matrix, Rank Matrix, SWOT Analysis, Product matrix. And the results were represented in Charts for better understanding. Based on the findings suitable suggestions were provided.
TABLE OF CONTENTS
S.No TITLE PG.NO 1 Confirmation Letter 3 2 Completion Certificate 4 3 Declaration 5 4 Acknowledgement 6 5 Abstract 7 6 List Of Tables 9 7 List Of Figures 10 8 List Of Abbreviation 10 9 CHAPTER – 1 11 10 Introduction 12 – 21 11 Review Of Literature 21 – 23 12 Objective Of Study 23 13 Scope 24 15 Significance Of The Study 24 16 Limitation 24 17 CHAPTER – 2 25 18 Company Profile 26 -33 19 Industry Profile 33 -35 20 CHAPTER – 3 36 21 Research Methodology 37 -38 22 CHAPTER – 4 39 23 Data Analysis and Interpretation 40- 60 24 CHAPTER – 5 61 25 Findings 62 26 Suggestions 63 27 Conclusion 63 28 Bibliography 64
LIST OF TABLES
TABLE No. TITLE OF THE TABLE PG.NO 1.1 Shows International Trade of Major Auto Component 21 2.1 Revenue in M€/Workforce 30 4.1 Showing Injectoplast Company profile matrix in India 40 -41 4.2 Showing Visteon Company profile matrix in India 42 -43 4.3 Showing Polyplastics Company profile matrix in India 43 -44 4.4 Showing Montaplast Company profile matrix in India 45 4.5 Showing Mecaplast Company profile matrix in India 46 -47 4.6 Showing Injectoplast Company profile matrix in Global 47 -48 4.7 Showing Visteon Company profile matrix in Global 48 -49 4.8 Showing Montaplast Company profile matrix in Global 49 -51 4.9 Showing Mecaplast Company profile matrix in Global 51 -52 4.10 Showing the Ranks & % for Mecaplast over their competitor in Indian Region 54 4.11 Showing the Ranks & % for Mecaplast over their competitor in Global 56 4.12 Criteria for Rank Matrix 57 4.13 SWOT analysis for Injectoplast 57 4.14 SWOT analysis for Visteon 58 4.15 SWOT analysis for Polyplastics 58 4.16 SWOT analysis for Montaplast 59 4.17 SWOT analysis for Mecaplast 59 4.18 Product Matrix 60
LIST OF FIGURES
S No. TITLE PG.NO 1.1 Represents Auto Component Turn-over in India 15 1.2 Represents – Automotive Component Market Share in India 17 2.1 Represents Mecaplast group Overview 28 2.2 Revenue by Product line 30 2.3 Customers 31 2.4 Chennai Plant 35 2.5 Interior Parts 35 4.1 Showing the Ranks & % for Mecaplast over their competitor in Indian Region 54 4.2 Showing the Ranks & % for Mecaplast over their competitor in Global 56
LIST OF ABBREVIATIONS
S. No. ABBREVATIONS 1 ACMA – Automotive Component Manufacturers of India 2 JV – Joint Venture 3 R&D – Research & Development
CHAPTER – 1
– REVIEW OF LITERATURE
Market Overview –
The Indian automotive component industry is small in size compared to the world market (INR740,000 Crores). The industry has been experiencing a high growth rate of 27 percent over the period 2001-06 and is expected to grow at a rate of 13 percent over the period 2006-14. The quality of components made in India has improved significantly in the last decade and about 11 Indian auto component companies have won the Deming prize so far. India is estimated to have the potential to become one of the top five auto component economies by 2025.
Export Scenario –
In 2006-07, automotive component exports from India were worth INR 11,200 Crores and are expected to reach INR 84,000 Crores in 2016. While growth rate of exports has been 38 percent during 2002-06, the export is expected to grow by 24.4 percent during 2006-15. India exports a vast range of automotive chassis and components. The major component categories that have shown a healthy growth in exports are vehicle components and accessories, transmission shaft and cranks, drive axles, starter motors, generators, and bumpers. The driving force behind India’s growing automotive components exports in the past has been higher exports by Indian subsidiaries of global OEMs and tier-I manufacturers.
Key Product Categories and Segments for Exports –
The engine components segment is technology and capital intensive and is likely to be dominated by the existing major firms in the short to medium term. Engine technology is expected to move towards superior design (for optimal fuel consumption and lesser emission), thus access to such technologies will be limited to the existing major firms. Among drive transmission and steering components, the steering systems are among the critical components of a four-wheeler. The capital and technology intensive nature of the segment acts as an entry barrier for companies in the unorganized segment
Major Characteristics –
The Indian auto component industry is a thrust sector for India. The direct employment generated by the medium and large firms in the organized sector is 2.5 lakhs. In terms of location, over 70 percent of the automotive components companies are situated in either the northern or western regions.
Delhi, Pune, and Chennai have traditionally been the most important clusters for the automotive components segment in India. The industry has 500 medium and large key participants in auto components in the organized sector, along with 6,000 ancillary units. The unorganized sector predominantly caters to the aftermarket. Manufacturers in this sector operate independently with little investment and on a small scale. They generally produce components based on copied drawings and their quality is below average. Most components required by the Indian automobile industry are manufactured locally. Import dependence is estimated to the tune of 13.5 percent of the domestic demand.
The Indian auto component industry is balanced in its contribution at components level like engine parts (31%), drive transmission and steering parts (19%), body and chassis (12%), suspension and braking parts (12%), equipment’s (10%), electrical parts (9%) and other components (7%). The auto component industry is capable of producing high quality products at low cost. The industry’s initiative
in setting up world class shop floor practices and quality practices have helped them to be recognized as a force to reckon with in the auto component suppliers’ league. Major automobile companies all over the world are sourcing products from Indian auto component manufacturers. The
Indian auto component manufacturers have made their presence felt in all product categories.
Auto Component Industry in India: An Overview
Introduction – The Indian automotive components industry has emerged as one of India’s fastest growing manufacturing sectors and a globally competitive one. The total global auto components trade was worth INR 740,000 Crores in 2006-2007 and is expected to grow to INR 7,000,000 Crores in 2015. The auto component sector in India generated sales of about INR 60,000 Crores in 2006-07. The ACMA-McKinsey Vision 2015 document estimates the potential for the Indian auto component industry to be INR 160,000 Crores to INR 180,000 Crores by 2016. In 2006-07 automotive component exports were worth INR 11,200 Crores and expected to reach INR 72,000 Crores in 2015.
The industry has been experiencing a high growth rate of 27 percent over the period 2001-06 and is expected to grow at a rate of 13 percent over the period 2006-14. Similarly, while growth rate of exports has been 38 percent during 2002-06, the exports are expected to grow by 24.4 percent during 2006-15. The quality of components made in India has improved significantly in the last decade and 11 Indian auto components’ companies have won the Deming prize so far. India is estimated to have the potential to become one of the top five auto component economies by 2025.
Total Automotive Component Market in India –
Indian automotive components are now part of many major markets in North America and Europe. Around 70 percent of these are exported auto components bought by global majors such as General Motors, Ford Motor and Daimler (formerly DaimlerChrysler), among others. India has a strong auto component base for various mechanical, electrical and electronic components. Many auto component companies are home grown and have a strong background. When Maruti Udyog started operations, many Japanese companies formed joint ventures with companies in India and also set up world class manufacturing facilities in India. Many Indian companies through their association with Maruti upgraded all facets of their business including productivity, quality, and delivery systems, among others. Entry of many multi-national vehicle manufacturers from Korea, Europe and US in India from 1995 onwards enabled global component suppliers to enter India in a big way.
Figure – 1.1: Represents Auto Component Turn-over in India, 2001 – 2006 (Expected Turnover by 2016)
Market overview –
India’s component industry has achieved the capability to manufacture the entire range of auto components, such as engine components, drive and transmission components, suspension and braking components, electrical components, and body and chassis components. Engine components make up nearly a third of all exports of auto components from India.
The automotive component industry caters to three broad categories of the market:
1) Original equipment manufacturers (OEM) or vehicle manufacturers comprise 25 percent total demand
2) Replacement market that comprises 65 percent of the total demand
3) Export market that comprises primarily of international tier-I suppliers and constitutes 10 percent of total demand
The key segments of the Indian automotive-component market include:
> Engine components (31 percent): Engine components fall into three broad categories- core engine components, fuel delivery system and others. This also includes products such as pistons, piston rings, engine valves, carburetors, and diesel-based fuel delivery systems. This is the most critical component and requires high involvement from the supplier.
> Drive transmission and steering components (19 percent): Gears, wheels, steering systems, axles and clutches are the important components in this category.
> Body and chassis (12 percent)
> Suspension and braking components (12 percent) – These include brakes, leaf springs, shock absorbers
> Equipment (10 percent) – This includes headlights, dashboard instruments
> Electrical components (9 percent) – The main products in this category include starter motors, generators, spark plugs and distributors.
> Others (7 percent) – Sheet metal components and plastic molded components are two of the major components in this category.
Figure – 1.2: Represents – Automotive Component Market Share in India
Characteristics of the Indian Automotive Components Industry –
Thrust sector of India
The Indian auto component industry is a thrust sector in India. The direct employment generated by the medium and large firms in the organized sector is 250,000 man-years.
Geographical spread of the industry
In terms of location, over 70 percent of the automotive components companies are situated in either the northern or western regions. NCR/ Delhi, Pune, and Chennai-Bangalore have traditionally been the most important clusters for the automotive components segment in India. With Tata setting up its manufacturing unit in Singur, West Bengal and its existing manufacturing base in Jharkhand, eastern regions is likely to emerge as an equally important cluster.
Low volume and fragmented industry
There are over 500 small, medium and large players in auto components in the organized sector along with 6,000 ancillary units. Most of these companies in India are family-owned businesses. The unorganized sector predominantly caters to the aftermarket. Manufacturers in this sector operate independently with little investment and on a small scale.
Low import dependence
Most components required by the Indian automobile industry are manufactured locally. Import dependence was estimated to the tune of 13.5 percent of the domestic demand for the year 2007. Imported automotive components include special steels and materials or high precision engineering components, such as gearboxes.
Leading manufacturers from across the globe have initiated steps for developing a vendor base in India by inviting their suppliers to set up manufacturing companies here. Leading automotive component companies such as Lear Corporation, Delphi, Visteon, Mando, ZF Steering, and Denso have a strong presence in India and cater to the OEM and the aftermarket. Some of the major domestic automotive components manufacturing groups in India include the TVS, Rane, Amalgamations, Kalyani, Sona, Rico, Minda, Amtek, among others. The two-wheeler market is the largest volume segment in India and automotive component companies in this segment have well- developed technology and quality systems in place. Many auto component companies apart from catering to the domestic demand also have strong export operations. It is estimated that 15 to 25 percent of the turnover of many large-sized Indian auto component manufacturer is accounted for by exports. A significant trend in the last 2-3 years is the interest shown by vehicle manufacturers and global tier-I companies in procuring components from India.
The SME players in the auto components sector are formally organized under the auto component manufacturers association (ACMA). Many companies present in India, as in-house vendors of vehicle manufacturers, are not part of ACMA and are estimated at nearly 125 in number. A large
number of auto component companies cater exclusively to the aftermarket and are unorganized in nature and these are estimated at 375.
The engine and transmission components account for about 50 percent of the component output in India. The engine components account for 31 percent of the total automotive component production
output and transmission and steering components account for 19 percent of the output. All engine and transmission components like engine block, piston, valves, camshaft, crankshaft, gears, and casings are manufactured locally. Companies in India possess well-established foundries for forged and cast components and are globally competitive.
The quality consciousness of the industry matches the global standards. This is corroborated by the fact that eleven Indian companies in the automotive industry have received the coveted Deming Prize, which is the largest number outside Japan. The auto component suppliers are also embracing modern shop floor practices like 5-S, 7-W, Kaizen, Total Quality Management, 6-Sigma and Lean Manufacturing, as they graduate to match with world-class industry. A large number of firms in this industry are also recipients of quality certificates like ISO-9000, TS-16949, QS-9000, ISO-14001 and OHSAS-18001.
The global auto component industry is expected to touch INR 7,000,000 Crore by 2015, of which around 40 percent (INR 280,000 Crore) is expected to come from low cost countries including India.
Global Market Dynamics
The world’s leading automotive and auto component manufacturers continue to invest in production facilities in emerging markets in order to reduce production costs. These emerging markets include Latin America, China, Malaysia and other markets in South East Asia. The world automotive industry, in its early stages of development, was concentrated mainly in developed countries like U.S., Japan, etc. As the automobile industry became more and more standardized, the production base of most of large auto companies is shifting from the developed countries to developing countries.
Standardization makes production more profitable in developing countries due to low cost of labour. That is why countries like India, Thailand, and China today are the main production bases for many multinational automobile companies.
Dynamics of International Trade
The dynamics of international trade in automotive sector has attracted the attention of economists and policy makers to formulate trade strategy. Automotive trade has been influenced both by liberalization as well as protectionism.
Table – 1.1: Shows International Trade of Major Auto Component Producing Countries
Exports of auto components from countries such as Japan, Korea and Germany are gradually increasing in comparison to the exports from U.S.A. China and Thailand have emerged as major competitors to India in the global exports market.
REVIEW OF LITERATURE
Competitive analysis is a process used in the formulating of strategic plans in most organization. Very often, it ¡s adopted due to its rational process of making long-term strategies. According to Stacey (1996), the rational prescriptions of making
strategies are concerned first of all with formulating and selecting strategic plans according to given rational criteria. This is a procedure for identifying a specific acceptable strategy for each individual organization, determined by its own
In any competitive analysis, industry structure analysis ¡s unavoidable. The first step in analyzing industry structure is to define the market (or industry). A market as pointed out by Stacey, ¡s an interaction between a grouping of customers who have similar requirements of a particular good or services on the one hand, and a strategic group of competitors competing to meet those requirements on the other hand. The boundary around a market is defined in terms of similarities in what is demanded and in terms of the closeness of the competition. Sometimes, it might be necessary to break this market down further to enable a more detail analysis.
Having defined the market) the next step in the analysis is to identify the structure of that market. It is very common to achieve this by analyzing the external factors which may affect the market. We can do this by analyzing the “Five Competitive
Market Forces”, as termed by Porter (1980). These competitive forces comprise of Threat of new entrants, Degree of rivalry between firms, Threat of substitutes, bargaining power of suppliers and bargaining power of buyers. Porter’s work built
on the structure, conduct and performance paradigm of industrial organization economics. The essence of the model is that the structure of a market determines the state of competition within the market and sets the context for company’s conduct that is their strategy. Most important structural forces (the five forces), determine the average profitability of the market and have a correspondingly strong impact on the profitability of individual corporate strategies.
In short, the competitive forces determine the relative market power of competitors, the kind of competition they engage in, the factors that give some of them a competitive advantage and the relative attractiveness of that market compared to others,
Analyzing the forces and making judgments on their relative importance should lead managers to see how they can deal with and influences the forces, thus identifying the competitive advantage. When we analyze the structure of a market, we are identifying the position a firm should occupy and the posture it should adopt to generate acceptable performance. The purpose of identifying a market’s structure and the sources of competitive advantage it causes is to draw conclusions about strategies that will match or fit the environment (Courtney, Kirkland and Viguerie, 1997). Strategy itself has largely been shaped around the framework first conceived by Andrews (1971). Andrew defined strategy as the match between what a company can do (organizational, strength and weaknesses) within the universe of what it might do (environment opportunities and threats).
Based on such framework, the managers need to demonstrate that strategies recommended fulfill a strategic logic. Strategic logic means that a proposed sequence of actions is consistently related to the objectives of the organization and yet matches the organization’s capability to its environment. Therefore, in order to achieve this, various analytical techniques to determine the strategic logic of a sequence of actions have been prescribed. They include SWOT Analysis, Life Cycle Analysis, Portfolio Analysis, Industry Structure and Value Chain Analysis and more recently the HAX Methodology.
OBJECTIVES OF THE STUDY
> A study about market conditions of Indian Automotive Industry
> To analyze Mecaplast performance in India and Market share among the other players of the industry
> To conduct the market research among the competitors in the Auto component manufacturing industry
> To find out the current situation in Mecaplast in terms of products, Technology, Business Shares
> To asses performance of the Mecaplast by doing SWOT Analysis
> Findings, conclusion, recommendation to the company to focus on increasing the business, infrastructure, investment
SCOPE OF THE STUDY
The main purpose of the research is to understand the competitiveness of Mecaplast (Interior Parts) over their competitors in the Auto Component Manufacturing Industry. This project helps me to know about the Auto component Manufacturing Industry. Well my job includes analyzing the competitor’s position in Interior parts of car with respect to Mecaplast.
> The main limitation of the study is the collection of information. Because most of the information are confidential. So they don’t want to disclose them.
> Time Constraint
> The results are based on the observation through Internet.
> The Study was conducted only with few competitors and not taking all the competitors in to consideration.
SIGNIFICANCE OF THE STUDY
A study of this nature will help Mecaplast and other organizations can adopt measures over their competitor to survive in the fast moving world.
The study is very significant because it will add to the existing literature or the research has added to the stock of books and works already written on competitive analysis.
CHAPTER – 2
– COMPANY PROFILE
– PRODUCT PROFILE
Mecaplast Group is an international automotive supplier and a major contributor to the Monegasque economy. Founded in 1955 by Charles Manni, it specializes in the design and manufacture of parts and complete systems for the vehicle body (interior and exterior) and engine. Mecaplast Group employs a total of 5,600 employees located in 16 countries and contributes to revenue of €662million (2012). With 350 of its employees based in Monaco, it is the fifth largest employer and the largest industrial company in the micro-state. Thierry Manni is the chairman of the board and the chief executive officer is Pierre Boulet.
Mecaplast was founded in 1955 by Charles Manni, (d. 2012). It started off with five people working in an apartment and a cellar located on Chemin des Œillets in Monaco. At the age of 29, Manni developed the first plastic part: a chemical capacitor cap for a company called Micro.
In 1964, Mecaplast made its entry into the automotive industry after having been selected to manufacture the plastic fan for the Peugeot 204. The company grew further and in 1969, it created a methods service and a tooling workshop. In 1975, it developed a company specialized in specific assembly machines. It was during this period that the Monegasque headquarters relocated to its current offices in the heart of the industrial district of Fontvieille in “Zone F” and to the production factory in the building called “Flots Bleus.” In 1985, Mecaplast created its first site outside of Monaco in Valréas, France.
From 2007, the entire automotive industry was affected by a crisis, including operations at Mecaplast. The group was obliged to reduce its workforce and close or sell some production sites.
In August 2009, Mecaplast was nominated as a strategic supplier for PSA and Renault, and as a result, the Group benefitted from the Modernization Fund for Automobile Equipment Suppliers (FMEA) which increased the company’s capital by €55 million/33% stake. The Chennai plant in India was opened on the 3rd of June, 2010.
Furthermore, the Group opened a third manufacturing site in Yantai, China and another in Zrenjanin, Serbia. The Zrenjanin site was officially opened on the 3rd of April 2012. Those in attendance included Boris Tadic (President of Serbia), Thierry Manni (Chairman of the Board), Nebojša Ciric (Former Minister of Economy and Regional Development), Mileta Mihailov (Mayor of Zrenjanin), José Badia(Minister of Foreign Affairs in Monaco) and François-Xavier Deniau (Ambassador of France in Serbia). Early 2013, Mecaplast opened a Customer Service Center in Munich, Germany. In 2014, a new production site will be created abroad.
In 2013, Mecaplast Group had a presence in 16 countries and had 26 production sites, 15 customer service centers and 6 technical centers and 3 skills centers specialized in car body and engine parts.
Figure 2.1 – Represents Mecaplast group Overview
The company produces plastic parts. They can be classified into two groups:
> Engine parts: engine air intake/intake line and components, screen systems (thermal and acoustic), fluid management
> Interior or exterior vehicle body parts: trims, storage modules, trunks (liners and shelves), painted exterior parts, covering parts, cowling, roof bars and pillars, spoilers).
> Provide to our Customers innovative solutions and superior quality products at competitive level.
Our Customers’ satisfaction is our priority. This is why we have chosen a Customer oriented organization divided in 5 Business Units:
> PSA/Volvo Cars and Trucks Business Unit
> Renault-Nissan/Toyota/Fiat Business Unit
> German Customers (GM/BMW/Daimler
> Volkswagen/Ford) Business Unit
> China Business Unit
> America Business Unit
Our 3 Skills Centers are dedicated to the design and development of parts:
> Monaco Skills Center
> Lens Skills Center
> Izernore Skills Cent
Table 2.1 – Revenue in M€/Workforce –
Year Revenue / Workforce 1995 175/1175 1998 223/2100 2000 286/2800 2002 580/5500 2005 820/7800 2007 759/6200 2009 570/5800 2010 643/5500 2011 692/5500 2012 662/5600 Revenue by product line –
> Body: 63%
> Engine: 37%
Figure 2.2 – Revenue by Product line
Main competitors –
> Engine: MGI COUTIER, Mark IV, Mahle, Treves, Steep, Mann Hummel
> Exterior: MGI COUTIER, Faurecia, Valeo
> Interior (Global): Faurecia, Visteon, Treves, Eurostyle Moller Tech, Borgers
> Interior (India) – Injectoplast ,Visteon, Polyplastics, Montaplast
Figure 2.3 – Customers
Mecaplast at Chennai, India –
Mecaplast Group, a 662 million Euro manufacturer of automobile equipment today announced the launch of its first production facility in India at Mahindra World City, Chennai. The factory, spread across 5 acres has invested nearly 300 million INR for its initial setup to manufacture a wide range of plastic engine and body parts for both local and international customers that includes Ford, Renault-Nissan, General Motors, Toyota, Volkswagen, BMW, Peugeot, Mercedes-Benz, Fiat, Volvo etc.
Set up at the DTA (Domestic Tariff Area) of Mahindra World City, the Mecaplast Group has its roots in Monaco, Europe where it was founded in 1955 by Mr Charles MANNI. The group designs, develops and manufactures parts and complete systems for vehicle Body and Engine. Mecaplast is a leading provider of the engine technologies, which aid automobile manufacturers to adhere to globally accepted environment norms (Euro IV & Euro V). The Company also holds several design patents in their field.
Today, the company boasts of over 5800 employees based across 14 countries across the world including 26 Production sites, 11 technical centres, state of the art testing centres and 2 skill centres which serve automotive markets across the world.
The Mecaplast facility at Mahindra World City, Chennai currently houses 40 employees. The production plant would primarily manufacture automotive plastic engine parts, Exterior and Interior parts namely: Engine air intake systems, coverings and shields, interior and exterior trims, cowl grills, fender liners and other plastic parts.
Speaking at the launch, Mr. Thierry Manni, Chairman of the MECAPLAST Group said, “The MECAPLAST Group is delighted to set up its first production facility in India. The Indian market holds great promise and we are quite certain that our products & technologies will be well accepted. Moreover, India is renowned for its skilled manpower, low cost of innovation and its design and development skills, factors which will help us in establishing base in the country.”
On the production unit at Mahindra World City, Mr. B.S. Rao, Country Head and Director, India Operations, the MECAPLAST Group, said, “We got our First business from Ford India in Feb, 2008 to localize their DV4 engine plastic parts. Almost at the same time Renault Nissan confirmed their operations in Chennai. This makes our decision easy to choose Chennai to put our first manufacturing plant. Now we have a state of the art Manufacturing facility and well-motivated team to serve our customers. Mahindra World City, Chennai proved to be an ideal foil as it is situated in close proximity to the Chennai Automotive Belt. Additionally, the township offers excellent infrastructure, easy connectivity to rail and roadways that are important to a multinational company like ours.”
On the set up of Mecaplast Ms. Sangeeta Prasad, Chief Operating Officer, Mahindra World City-Chennai said, “I am delighted to welcome the Mecaplast Group to Mahindra World City. We reaffirm our commitment in providing an enabling environment to Mecaplast and wish them enduring success in this facility and an enriching experience in India.”
Production Unit –
> Starting date – 2009
> Plant Director – B.S RAO
> 2013 turnover – 9.07 M€ (705.7Mn INR)
> Employees as on Jan’14 – 123 persons
> Surface – 4,000 Sq.Mt
> Thermoplastic injection
> Vibration welding
> Hot plate welding
> US welding
> Gas Injection
> Laser Welding
> Filter Element Manufacturing Line
> Foam Dispensing System
> Cam Cover (Cylinder Head Covers)
> Air Intake Manifolds
> Air Filter
> Engine Beauty Cover
> Turbo Noise Attenuator
> Belt Covers
> Fuel Filter
> Cowl Grille
> Rocker Panel and Reinforces
> Bumper Supports
> Under Covers
Chennai Plant – (Figure 2.4)
Interior Parts – (Figure 2.5)
CHAPTER – 3
– RESEARCH METHODOLOGY
Research methodology is a systematic process of identifying and formulating by setting objective and method for collecting, editing and tabulating to find solution.
Meaning of Research:
The advance learners’ dictionaries of current English lay the meaning or research “a careful investigation or inquiry especially through search for new facts in any branch of knowledge”.
Research, is thus, an original contribution to the existing stock of knowledge making for its advancement. It refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analysing the facts and reaching certain conclusions either in the form of solution(s) towards the concerned problem or in certain generalizations for some theoretical formulation.
The problem that follows the task of defining the research problem is the preparation of the design of the research project is called as research design.
Design regarding what, where, when, how much, by what means concerning an enquiry or a research study constitutes a research design. “A research design is the arrangement of the conditions for the collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.”
The research design undertaken by researcher is Descriptive research design. This research design concerned with the research studies with a focus on the portrayal of the characteristics of a group of individual or a situation.
SOURCES OF DATA COLLECTION:
The data for the research purpose is mostly collected through secondary data.
The secondary data used in this research are
> Books referred
The instrument used for this study is “Observation through Internet”.
In order to come out with the findings of the study, the following tools are used
* Company profile matrix
* Rank Matrix
* Swot Analysis
* Product Matrix
CHAPTER – 4
– DATA ANALYSIS
Competitor Company Profile Matrix
Matrix -1: Injecto Plast (Table 4.1)
Name of the Company Injecto Plast Incorporated 1988 Location Kanpur, Chennai, Pune, Gurgaon No Of Location 4 No Of Employee 101 – 501 Last Year Turnover – No Of Plants 3 (Kanpur, Chennai, Pune) Name of Products Beauty Cover, Tube Asm, Oil Baffle, Fork and Chain Guides, Resavoir, Battery Tray, CVJ and rack & Pinion Boots, Steering Column Seal, Grab and Assist Handles, Floor Door Handle, Speaker Grills, Radiator End Tanks, Intercooler tank, CAID Assy, Flapper, Fan, Fan Shrould, Pedal, Brush Box. Valve Body
No of Products 20 Customers Volkswagen, GM, Skoda Auto, Ford Motar Company, Visteon Automative Systems, GKN Driveline (India) Limited, BEHR India Limited, Bosch India, Nexteer Automative, NTN NEI Mfg.India (p) Ltd, Comstar Automative, Halla Visteon Climate Sys. (I) Ltd, Delphi Automative System, PHA India (P) Ltd, Sona Steering Systems Ltd, Munjal Showa ltd, Brakes India Ltd, Denso Faridabad ltd, Lohia Corp Ltd, Grupo Autolin pune Pvt Ltd, AVO Carbon, Rane (Madras) limited, Rane TRW steering Systems, AVTEC Limited
No of customers 24 Certification ISO/ TS 16949:2009, ISO – 9002, QS-9000, ISO 14001 Awards ‘A’ Grade in quality capablity assesment – M/s Volkswagen(VW) in the year 2010, prestigious Ford Q1 Award in the Year 2007, SQ Mark of HYNUDAI MOTOR INDIA LTD. in the year 2009 In house R&D Yes In house testing & Validation facility Yes New Innovation For timely Deliveries and on-site service – They have builted3 manufacturing facility which cover major automative hub of car making company
New Updates Presence at 24 Hours Dubai Race, VW Polo Cup at Buddha International Circuit Noida, Volkswagen Polo R Cup Championship ,’A’ Grade Supplier of Volkswagen Globally
Matrix – 2: Visteon (Table 4.2)
Name of the Company Visteon Incorporated 1997 Location Bhiwadi, Chennai, Pune No Of Location 3 No Of Employee 3000 Last Year Turnover – No Of Plants 3 (Bhiwadi, Chennai, Pune) Name of Products Engine
Induction, HVAC Systems, Power train Cooling,
Compressors, and Fluid Transport, Cockpit Modules, Instrument Panels, Consoles, Door
Trim, Exteriors, (Multi-Function
Displays, Audio & Infotainment, Instrumentation &
Displays, Automatic Climate Control Panels
No of Products 14 Customers Maruti Suzuki, Ford, Udyog, Toyota kirloskar Motors, Hyundai
No of customers 5 Certification ISO 140001 and TS 16949, OHSAS 18001
Awards Overall Excellence – Silver Award (Maruti Suzuki), Awarded silver trophy for Manufacturing Excellence
by ACMA,Best Environment Friendly Green Company from
Rajasthan State Industrial Development and
Investment Corporation Ltd. Hyuandai Motar 100PPM Award Ford Motor Company Q1 award
In house R&D Yes In house testing & Validation facility Yes New Innovation Ebee Concept Car
New Updates –
Matrix – 3: Polyplastics (Table 4.3)
Name of the Company Polyplastics Industries Pvt ltd Incorporated 1967 Location Haryana, Yamuna Nagar, Pune, bawal No Of Location 4 No Of Employee 1540 Last Year Turnover 300 Crore No Of Plants 4 (Haryana, Yamuna Nagar, Pune, bawal ) Name of Products Plastic injection moldings, plastic automotive parts, wheel rim covers , Automobile plastic part, plastic wheel cover, plastic sender, plastic vixor No of Products 7 Customers Maruti Suzuki, Toyota, Tata, Royal Enfield, Ford, Honda, mahindra Renault, Hindustan Motors, Suzuki, Swaraj mazda, Eicher, Piazzio, John Deere, Delphi, Hyundai, Nissan, Tafe, Fiat, GM, Opel, Hero Honda
No of customers 21 Certification ISO/TS 16949:2009, ISO 14001:2004, ISO/IEC 27001:2005,
Awards Eicher award for design and Development of plastic dash board for tractors, Kamal Gupta & Kapil Gupta receiving award fromToyota Kirloskar motar & Maruti udyog limited
In house R&D Yes In house testing & Validation facility Yes New Innovation – New Updates PP & Zanani auto group JV Plant in Pune (6 Million Wheel Cover a year) New Plant Construction in Oragadam & Bawal (Expanded the business in 2013)
Matrix – 4: Montaplast – (Table 4.4)
Name of the Company Montaplast Incorporated 2011 Location Mumbai No Of Location 1 No Of Employee – Last Year Turnover – No Of Plants 1 (Mumbai) Name of Products oilpans, engine covers, air induction system, resonators, cam covers, Garnish trims, trunk claddings, overhead consoles, speaker grills, trunk silling covers, interior air vents, Enameled Bumpers, front and rear system, Strut and Chassis Claddings, Side rails and trim strips, water separators, chrome radiators, air inlet grilles, fenders and spoilers No of Products 18 Customers – No of customers – Certification – Awards – In house R&D – In house testing & Validation facility – New Innovation & New Update –
Matrix – 5: Mecaplast – (Table 4.5)
Name of the Company Mecaplast Incorporated 2009 Location Chennai No Of Location 1 No Of Employee 123 Last Year Turnover 70.57 Crores No Of Plants 1 (Chennai) Name of Products Cam Cover, Air Intake manifold, Air Filter, Engine Beauty Cover, Turbo Noise Attenuator, Belt Covers, Fuel Filters, Cowl Grille, Rock Panel and Reinforcers, Bumber Supports, Under Covers No of Products 11 Customers Ford, Renault, Nissan, Toyota, Maruti Suzuki, Wolkswagen, GM, Ashok Leyland/Nissan No of customers 8 Certification ISO 14001:2004, TS 16949 Awards 1st Business award from VW/Skoda India, for 1.5Ltr Engine Part, Innovative technology for E-NR engine project from Toyota Kirloskar Auto parts In house R&D Yes In house testing & Validation facility Yes New Innovation & New Update – Global –
Matrix – 1: Injectoplast – Table (4.6)
Name of the Company Injecto Plast Incorporated – Location – No Of Location – No Of Employee – Last Year Turnover – No Of Plants – Name of Products – No of Products – Customers
Volkswagen, GM, Ford, Audi Ag, Jaguar landrover, SEAT, GKN driveline (India) Ltd, IWIS motors system, AVO Carbon, No of customers 9 Certification – Awards – In house R&D – In house testing & Validation facility – New Innovation – New Updates –
Matrix – 2: Visteon (Table 4.7)
Name of the Company Visteon Incorporated 2000 Location China, Indonesia, Japan, South korea, Thailand,Chezc republic, France, Germany, Hungary, Morocco, Poland, Portugal, Russia, Slovakia, South Africa, Spain, Turkey, UK,Canada, Mexico, US,Argentina, Braizil No Of Location 23 No Of Employee 24000 Last Year Turnover $ 7.44 Billion No Of Plants 68 Name of Products Cockpit Modules, Door Trim, Lighting,Front Lighting Products, Rear Lighting Products, Engine Induction Products, Powertrain Controls Products, Mobile Application Products, Additional – Powertrain, Chassis, Other- Bumpers, Clutches, Shift Knobs, Headliners, R744 Climate System, Modular Multi-Zone HVAC, Climate Controls, Fluid Transport Systems, Compressors, Heat Exchangers, Battery Cooling Module, Audio and Infotainment, Instrumentation – Analog/Digital Instrument Cluster, Displays, Lamps, Control Panels No of Products 23 Customers BMW, Daimerchrysler AG (DAI), Ford, GM, Honda, Hyundai/Kia, Nissan, Peugeot, renault, Toyata, Volkswagen, Mazda, Maruti Suzuki, Audi,Volvo No of customers 15 Certification ISO/TS-16949, ISO 26262, ISO 140001 Awards General Motors Recognizes Visteon for Quality Excellence, Chongqing Xugang Electronics Plant Earns Ford Q1 Award In house R&D Yes In house testing & Validation facility Yes New Innovation Ebee Concept Car
New Updates –
Matrix – 3: Montaplast – (Table 4.8)
Name of the Company Montaplast Incorporated 1958 Location Germany,China, france,USA, Uk,Japan No Of Location 6 No Of Employee 1001 -5000 People Last Year Turnover $ 432 Million No Of Plants 3 (Germany, USA, China) Name of Products Oil pans, engine covers, air induction system, resonators, cam covers, Garnish trims, trunk claddings, overhead consoles, speaker grills, trunk silling covers, interior air vents, Enameled Bumpers, front and rear system, Strut and Chassis Claddings, Side rails and trim strips, water separators, chrome radiators, air inlet grilles, fenders and spoilers No of Products 18 Customers Audi, BMW, Chrysler, Daimler, Dodge, Ford, GM, Benz, Nissan, opel, prosche, SAAB, Smart, Volvo, Volkswagen No of customers 15 Certification ISO TS16949, ISO 9001-2008, ISO 9001, ISO 14001, Awards Quality silver award from Toyota in 2012, certificate of Recognition” for the 20 best suppliers in delivery, awards for the quality and on time delivery amongst the others from the Toyota Peugeot Citroen Automobile company, Manufacturers of Toyota
In house R&D Yes In house testing & Validation facility Yes New Innovation – New Update MONTAPLAST ADDS MANIFOLD MOLDING LINES plans to invest $2.3 million to move its research & development facilities from Southfield to a bigger space in Auburn Hills. The move is expected to create 25 jobs over the next five years.
Matrix – 4: Mecaplast – (Table 4.9)
Name of the Company Mecaplast Incorporated 1955 Location USA, Mexico, Braizil, Spain, Monaco, Italy, Turkey, China, Japan, Serbia, Chech Rep. , Poland, Germany, France, UK No Of Location 15 No Of Employee 5600 Last Year Turnover 662 Million Euros No Of Plants 25 (UK, France, Poland, Chezch Rep., Serbia, Mexico, Braizil, Spain, Monaco, Italy,Turkey, China Name of Products Air Intake System, Air Filter, Thermostat Housing, Oil Sump, Cam Cover, Air Intake Manifold, Roof bars, Spoilers, Back Door Handles, Cowl Grilles, Fender Protector, Wheel Arch Liners, Body Side Moulding, Exterior ABC Pillar, Back Door Handles, ABC pillar, Garnish, Middle Console, Cover Steering Column, Carpet, Tailgate, Tailgate Trim, Rear Parcel Shelf, Jointed Load Floor, Mobile Storage Box, Trunk Carpet, Trunk Trims, Cockpit Pillar Trims, Trunk Pillar Trims, Central Console No of Products 29 Customers Suzuki, Renault, Nissan, Peugeot, Ford, GM, SAIC, Benz, Smart, Fiat, Chrysler, BMW, Mini, Wolkswagen, Skoda, Audi, Seat, Alfa Romeo, Toyota, Lancia, Honda, Volvo,Denso,Toyoda Boshoku Corporation No of customers 25 Certification ISO 9001:2008 & ISO TS 16949:2009 Awards Quality silver award from Toyota in 2012, certificate of Recognition” for the 20 best suppliers in delivery, awards for the quality and on time delivery amongst the others from the Toyota Peugeot Citroen Automobile company, manufacturers of Toyota In house R&D Yes In house testing & Validation facility Yes New Innovation – New Update Performance & Cost, Weight & Cost, Cocoon & Cost, Green Material & Cost
TABLE NO 4.10
TABLE SHOWING THE RANKS & % FOR MECAPLAST OVER THEIR
COMPETITOR IN INDIAN REGION
Mecaplast Injectoplast Montaplast Polyplast Visteon TOTAL 300 340 150 390 280 PERCENTAGE 60% 68% 30% 78% 56% RANK 3 2 5 1 4
CHART SHOWING THE RANKS & % FOR MECAPLAST OVER THEIR
COMPETITOR IN INDIAN REGION
Well Mecaplast is in the position of 3rd in Indian region with the percentage of 60 and the first two places were occupied by Polyplast and Injectoplast respectively.
TABLE NO 4.11
TABLE SHOWING THE RANKS & % FOR MECAPLAST OVER THEIR
COMPETITOR IN GLOBAL
Mecaplast Injectoplast Montaplast Polyplast Visteon TOTAL 430 30 340 0 440 PERCENTAGE 86% 6% 68% 0% 88% RANK 2 4 3 – 1
CHART SHOWING THE RANKS & % FOR MECAPLAST OVER THEIR
COMPETITOR IN GLOBAL
Well Mecaplast is in the position of 2nd in global with the percentage of 86 and the first place was occupied by visteon.
Criteria for Rank Matrix (Table 4.12)
Rating 5 High 4 3 2 1 Low – Unavailability of Data SWOT ANALYSIS –
Injectoplast – (Table 4.13)
Visteon – (Table 4.14)
Polyplastics Industries Private Limited – (Table 4.15)
Montaplast – (Table 4.16)
Mecaplast – (Table 4.17)
Product Matrix – (Table 4.18)
The above matrix represents the interior products like ABC Pillar, Middle Console and Grab Handle were supplied by Mecaplast, Injectoplast, Montaplast, Polyplast, Visteon and other suppliers to their respective models of Car.
CHAPTER – 5
– FINDINGS & SUGGESTIONS
By the way of collecting the data through secondary data and by applying tools, the analyzed findings are
> In Indian region Mecaplast was ranked in the 3rd position with an aggregate percent of 60.
> First place was occupied by Polyplastics Industry private Limited with aggregate of 78 percent in Indian region
> 2nd place is occupied by Injectoplast with an aggregate of 68 percent.
> Visteon and Montaplast were occupying 4th & 5th places with aggregate of 56 and 30 percent respectively.
> While comparing global with Indian region the Mecaplast is ranked 2nd place with an aggregate of 86 percent.
> Well in Global Visteon is retaining its first position with an aggregate of 88 percent.
> Well Monatplast and Injectoplast is ranked 3rd and 4th position in global with an aggregate of 68 and 6 percent respectively.
> Well Injectoplast doesn’t have any manufacturing facility in global, it is just export their products to different countries for different customers by having a warehouse and providing sales and service support.
> Polyplastics doesn’t have their business on globally.
The study proves that the Mecaplast is providing a tough competition to their competitors but it is now well enough to take a competitive advantage over their competitor. So the following are my suggestions.
> As Mecaplast doesn’t deal with the Interior parts in Indian market they need to start dealing with the Interior parts in Indian Market to have a competitive advantage over their competitor
> Mecaplast need to have lots of customers in Indian Market to competitive advantage
> Since Indian Market is new for Mecaplast it needs to expand their business to have competitive advantage.
> Well Mecaplast technicians can come up with new innovative ideas in Auto component manufacturing Industry by producing new products to have the competitive advantage.
This presents the summary of the study done in relation to the competitive analysis of Mecaplast (Interior Parts) over their competitor in Auto Component Manufacturing Industry. The conclusion is drawn from the study through various data collected through Internet on competitive analysis of Mecaplast.
The companies which have been analyzed in the project are leaders in their respective sector. These companies have outperformed the respective benchmarks and are giving healthy over the period of time.
A stable and growing auto component industry, which has thousands of producers in the unorganized sector as well, is critical for the overall health of the economy.
> Philip Kotler, (2012) Marketing Management, Prentice-Hall, New Delhi, Eleventh Edition
> Deepak Chawla, Neena Sondhi, (2011) Research Methodology concepts and Cases, Vikas Publications – First Edition
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