Page 130 - DECO303_INDIAN_ECONOMY_ENGLISH

Unit 7: Indian Industries

brackets, Dash board components, Door handles, Ash trays, Auto electrical assemblies. Notes
Polyplastics realized early in its growth journey that it needs to be the best manufacturer
of the critical components that it manufacturers. In order to achieve this, it entered into
technical collaboration with Sakae Riken Kogyo Co., Japan for Electroplating on plastics
and Extrusion mouldings. It also entered into technical collaborated with Zanini Auto
Group, Spain in the year 2006 for manufacturing Wheel covers.
Polyplastics has developed expertise and experience to make products meet global
specifications. The collaborations have helped to build up further confidence in the domestic
OEMs, Maruti Udyog Ltd., Tata Motors Ltd., Toyota Kirloskar Motors Pvt. Ltd., General
Motors India Pvt. Ltd., Swaraj Mazda Ltd., Ford India Ltd., Honda Siel Cars India Ltd.,
Mahindra Renault, Fiat. Further it has also helped it to upgrade its manufacturing
technology with the result get orders from Global OEMs such as General Motors, Nissan
and Renault for their overseas locations to endless but serious enquiries are being released
from all over the Globe.
Polyplastics has also been a supplier to General Motors, Thailand. The quality of its
products has helped it get bigger orders from other OEMs. The increased demand for its
products has necessitated expansion of its facilities. Two years ago, a manufacturing facility
was created in Gurgaon which is almost 100% utilized. The Pune facility, which will
manufacture the similar components, is coming up with an investment of ` 25 crore. This
facility will become operational by end of the year 2008. Also the groundwork for a
manufacturing facility in Chennai has already started.
While Polyplastics did not have any major problem in any of the Joint Ventures so far, it
feels that the Government shall works towards making Indian arbitration institutions and
systems internationally credible. Such an arbitration process will install confidence between
the two Joint Venture partners.
Polyplastics though feels that continuously increasing prices of raw material and disparity
in the pricing policy of the global raw material suppliers is fast making Indian auto
component manufacturers less competitive in the globalized economy. Another factor
that is making India less competitive is the lack of availability of dedicated manpower.
The quality of its products has helped it get bigger orders from other OEMs. Till the year
2004, it exported very small components like emblems to GM-Thailand. In 2004, it got an
order from GMT Thailand for the supply of Chevy Bowtie. This component was a very
complicated one. Because, there were three processes, Injection moulding, vacuum
metalising and painting involved to produce the parts.
The design of the part was in Unigraphics, for which the company did not have software
in-house; yet, it successfully developed the part, without any major problem. It was one of
the first auto components (Assy of two parts ABS +PMMA with vacuum metalising),
which Polyplastics had developed in-house for the overseas customers.
Keeping in mind the successful development and supply of above part, GM again selected
Polyplastics for their new programme S4200 car for their Mexico plant and awarded order
for 4 components to it. These parts are presently under approval stage.
The growing confidence of GM in the company has resulted in some of its getting tested in
China and USA and have resulted in satisfactory quality. This is likely to help them
getting selected as approved global suppliers. Similar situation happened with the Renault.
Polyplastics was an unknown supplier to Renault. But after the successful development of
components for Logan car (Being produced by their Indian JV company Mahindra Renault),
they awarded order to it for two more components for their manufacturing plant in
Turkey and France. Testing of these parts have been cleared by Renault approved test labs
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