TVS Group Business Report FY ended Mar. 2018
Recent Years
Financial Overview (FY ended Mar. 2018)
Axles India Limited
-In the FY ended Mar. 2018, Axles India Limited sales revenue was up by 6.2% to INR 4,838.6 million compared to INR 4,552.8 million in the previous year. Its sale of Housings in the domestic market increased to 219,000 pieces in 2017-18 from 205,000 pieces in 2016-17. Export sales to Dana USA increased marginally and exports to Thailand and Japan increased to 4,600 pieces in 2017-18 from 550 pieces in 2016-17.
Harita Seating Systems Limited
-In the FY ended Mar. 2018, Harita Seating Systems sales revenue grew 17.3% to INR 4,547.0 million compared to INR 3,877.9 million in the previous year. The Company's sales growth in the commercial vehicle segment and the bus passenger seats area exceeded the average market growth.
India Nippon Electricals Limited
-In the FY ended Mar. 2018, India Nippon Electricals Limited sales revenue grew 17.1% to INR 4,787.7 million compared to INR 4,089.7 million in the previous year. The Company's sales grew because of increases in customer market share, robust growth in the sale of electronic parts for the three-wheeler segment, and a higher share of business from various customers for standard products such as magnetos.
Sundaram Brake Linings Limited
-In the FY ended Mar. 2018 sales revenue grew by 2.2% to INR 2,504.9 million compared to INR 2,451.4 million in the previous year. The company recorded a growth rate of 28% in the domestic OE segment, but a decline in the domestic Aftermarket and Export segments by 2% & 4% respectively.
Sundram Fasteners Limited
-In the FY ended Mar. 2018, the company increased its sales revenue by 15.2% year-on-year to INR 33,961.1 million compared to INR 29,472.7 million in the FY ended Mar. 2017. The company reported that the improvement in domestic sales was a result of the increase in the production of light commercial vehicles and passenger vehicles in the Indian market. There also has been a sharp increase in aftermarket sales due to certain initiatives undertaken by the Company.
Sundaram-Clayton Limited
-In the FY ended March 2018 sales revenue increased by 11.1% to 17,667.4 million compared to INR 15,896.7 million in the previous year. During the year, there was an unexpected ncrease in product demand from customers.
Wheels India Limited
-In the FY ended March 2018 sales revenue increased by 7.3% to INR 25,171.4 million compared to INR 23,458.2 million in the previous year. The company recorded strong growth in the air suspension business, and good growth in the windmill parts and tractor wheel businesses.
Financial Overview (FY ended Mar. 2017)
Axles India Limited
-In the FY ended Mar. 2017, Axles India Limited sales revenue was down by 14.8% to INR 4135.9 million compared to INR 4858.8 million in the previous year. Its sale of Housings in the domestic market increased marginally in 2016-17 compared to the previous year, but export sales to Dana USA dropped to 42,500 pieces from 100,000 pieces in 2015-16.
Harita Seating Systems Limited
-In the FY ended Mar. 2017, Harita Seating Systems sales revenue grew 12.5% to INR 3,573.6 million compared to INR 3,175.5 million in the previous year. The Company's sales in the commercial vehicle segment and in bus passenger seats grew above the market average.
India Nippon Electricals Limited
-In the FY ended Mar. 2017, India Nippon Electricals Limited sales revenue grew 5% to INR 4,079.2 million compared to INR 3,884.7 million in the previous year. The Company's revenue grew because of increased sales and material cost reduction efforts, despite an increase in labor costs.
Sundaram Brake Linings Limited
-Revenue in the FY ended Mar. 2017 remained basically flat at INR 2,465.2 million compared to INR 2,462.7 million in the previous year. The company recorded a growth of 6.5% in the domestic OE & domestic Aftermarket segments, and a decrease of 6% in the Export segment.
Sundram Fasteners Limited
-In the FY ended Mar. 2017, the company increased its sales revenue by 11.9% year-on-year to INR 29,488.5 million compared to INR 26,355.6 million in the FY ended Mar. 2016. The company's hot forging, powertrain component, and wind energy fastener product lines contributed significantly to the increased growth in sales revenue.
Sundaram-Clayton Limited
-Revenue in the FY ended March 2017 decreased by 4.4% to INR 15896.7 million.
Wheels India Limited
-Revenue in the FY ended March 2017 increased to INR 21760.6 million, 9.4% higher than the previous year. The company recorded strong growth in the air suspension business, and good growth in the windmill parts business and tractor wheel business areas.
Technological Alliance
Brakes India Limited
-In July 2010, TRW Automotive announced a technology partnership with Brakes India Limited (BI). TRW intends to license slip control systems (SCS) technology to BI to enable them to manufacture and provide development capabilities in India. At present, TRW exports complete ABS and electronic stability control (ESC or VSC) units to India. BI was formed as a joint venture between TRW and the TVS Sundram Group in 1962. (From a press release on July 13, 2010)
Lucas-TVS Limited
-Usui Kokusai Sangyo signed a Technical Assistance Agreement for fan drives with Indian automotive supplier Lucas-TVS Limited in March 2010. Lucas-TVS is headquartered in Chennai and manufactures motors, alternators, engine cooling fans and ignitions. (From a press release on June 11, 2010)
Business Partnership
Topy Industries, Ltd.
-In July 2017, Topy Industries, Ltd. (Topy Industries) announced that it will establish a joint venture with Wheels India Limited (WIL) in India to manufacture and sell steel wheels for passenger cars. WIL will split off its passenger car steel wheel business from the Bawal Plant in Haryana, northern India, and the Padi Plant in Tamil Nadu, southern India, and establish the new company WIL Car Wheels Ltd. (WCWL). Topy Industries will acquire a 26% stake in WCWL.
ZF Electronics TVS
-In August 2009, US-based CTS Corporation and ZF Electronics TVS (India) Private Limited - ZF Electronics TVS - entered into a marketing agreement. Under the agreement CTS will sell its products including rotary and linear position sensors and other electronic components in India, with an initial focus on the 4- and 2-wheeler automotive markets. ZF Electronics TVS, a joint venture between the Group and ZF Electronics Corporation of Germany, manufactures switches, sensors and other components for several segments, such as automotive, in India. (From a press release on August 19, 2009)
Awards
Sundaram Clayton Limited
-During the FY ended March 2018, the company was recognized and rewarded by the following customers:
- Cummins
- PACCAR / DAF
- Rotex
Sundaram Fastner Limited
-During the FY ended March 2018, the company was recognized and rewarded by the following customers:
- Excellence in Export Award - Very Large Category from ACMA
Wheels India Limited
-During the FY ended March 2018, the company was recognized and rewarded by the following customers:
- General Motors
- Mahindra & Mahindra
- Tata Motors
- Volvo Eicher
Sundaram Auto Components Limited (SACL)
-During the FY ended March 2017, the company was recognized and rewarded by the following customers:
- Joyson Safety Systems
- Daimler India
- Hanon Systems
Wheels India Limited
-During the FY ended March 2017, the company was recognized and rewarded by the following customers:
- Ford
- Hyundai
- Maruti Suzuki
- Volvo Eicher
Sundaram-Clayton Limited
-During the FY ended March 2015, the company was recognized and rewarded by the following customers:
- Cummins: Superior quality award
- Hyundai: "4+ Star" quality rating
- Visteon: Appreciation for VAVE in new product development
Wheels India Limited
-In January, 2014, Wheels India won the CV Auto Component of the Year sponsored by Apollo for its forged aluminum tube type wheel. (From a press release on January 15, 2014)
-In 2013, the company awarded Regional Contribution Award from Toyota.
Harita Seating Systems Limited
-In 2013, Harita Seating Systems received the CV Component of the Year award for its 3-point Emergency Locking Retractor (ELR) type seat belt assembly for bus seats.
R&D Activities for FY ended March 31, 2018
Axles India Limited
-In the FY ended Mar. 2018, Axles India Limited continued to innovate and increase its technology deployment to meet the requirements of its customers in various industry segments and will continue its efforts towards yield improvement, resource optimization and improved product performance.
Harita Seating Systems Limited
-In the FY ended March 31, 2018, Harita Seating Systems incurred R&D expenditures of INR 107.8 million.
-The following are specific R&D activities that Harita Seating Systems carried out in the FY ended March 31, 2018:
- Instructional seat prototype development completed for the export market.
- New product tooling for mechanical and pneumatic suspension seat (currently developed as platform for global OEM customers)
- Deluxe Seats developed for Indian bus passenger seat market.
- Auto folding co-driver seat developed for deluxe buses.
- School Bus Seats developed under platform concept.
- Single Pan Seat went into production and supply of product began.
- Rear suspension tractor seat developed under platform concept.
India Nippon Electricals Limited
-R&D expenditure for FY ended March 2018 was INR 73.6 million.
-The following are specific R&D activities that India Nippon electrical Limited carried out in the FY ended March 31, 2018:
- Existing product development, VA/VE, adjacent products
- New System development with Electronic Fuel Injection (EFI) and Integrated Starter Generator (ISG) including test facility establishment and related software development
Sundaram Brake Linings Limited
-In the FY ended March 31, 2018, Sundaram Brake Lining Limited incurred R&D expenditures of INR 100 million.
-The following are specific R&D activities that Sundaram Brake Lining Limited carried out in the FY ended March 31, 2018:
- Developed and obtained OEM approval for drum brake lining for heavy tipper, truck and bus applications.
- Developed and obtained OEM approval for drum brake lining for light commercial vehicle applications.
- Developed and obtained OEM approval for new grade woven clutch facings for commercial vehicle applications.
- Extensive studies conducted and formulations developed to mitigate stiction and corrosion in brake drums of Cars & SUVs.
- Dynamometer tests developed simulating actual vehicle & duty cycle conditions for more effective validation of drum brake linings and disc brake pads.
- Extensive studies conducted on commercial vehicle and two-wheeler liners and formulations developed to mitigate braking noise.
Sundram Fasteners Limited
-R&D expenditure for the FY ended March 2018 was INR 143.9 million. The following are specific R&D activities that Sundram Fasteners Limited Limited carried out in the FY ended March 31, 2018:
- Installed and commissioned 500T multiplaten (4 levels) CNC controlled compaction press to produce net shaped products.
- Development of alloys in SFL’s Iron Powder Unit, which are capable of being sinter-hardened eliminating the need for separate hardening operation
- Development of sinter-hardened Powder Metallurgy parts using powders produced in SFL’s Iron Powder Unit
- Change of process for higher size nuts – Hot forging route adopted from Cold forging route.
- Development of lightweight fasteners
- FEA (Finite Element Analysis) and modeling software are utilized for upgrades and associated derived benefits
Sundaram-Clayton Limited
-In the FY ended March 2018, the company incurred R&D expenditures of INR 45.7 million.
-The following are R&D activities that Sundaram-Clayton completed during the FY ended March 31, 2018:
- Developed new aluminum die cast products for automotive applications
- Established state-of-the-art CT scan facility to reduce new product development lead time.
- Developed Abrasive Flow Machining (AFM) process to improve the surface finish of a specific product, pre-product technology for the customer
- Improved material yield in die casting through design optimization
- Established semi-solid casting
- The Company is actively working on filing patents for unique processes, such as a distortion correction technique for heat treated components. So far the Company has filed for a total of four patents.
- Establish thermal design for High Pressure Die Cast (HPDC) and GDC dies to control thermodynamics and kinetics during solidification.
- Development of semisolid casting for identified parts to improve casting quality
- Establish water free die lubrication in one die casting cell
Wheels India Limited
-In the FY ended March 31, 2018, Wheels India spent a total of INR 140.1 million on research and development.
-The following are R&D activities that Wheels India completed during the FY ended March 31, 2018:
- 174 new products were developed and 5 new patents were filed
- Significant development in suspension kits, lift axles, energy equipment parts
R&D Activities for FY ended March 31, 2017
Harita Seating Systems Limited
-In the FY ended March 31, 2017, Harita Seating Systems had an R&D expenditure of INR 132.6 million.
-The following are specific R&D activities that Harita Seating Systems carried out in the FY ended March 31, 2017:
- Instructional seat prototype development completed for export market.
- New product tooling for mechanical and pneumatic suspension seats (currently developed as platform for global OEM customers)
- Deluxe Seats developed for Indian bus passenger seat market.
- Auto folding co-driver seat developed for deluxe buses.
- School Bus Seats developed under platform concept.
- Single Pan Seat went into production and supply of product began.
- Rear suspension tractor seat developed under platform concept.
India Nippon electrical Limited
-R&D expenditures for the FY ended March 2017 was INR 58.3 million. The company conducts R&D activities at the Padi, Velappanchavadi and Hosur facilities.
-The following are a couple of the specific R&D activities that India Nippon electrical Limited carried out in the FY ended March 31, 2017:
- Successful introduction of Patent pending Integrated Ignition controller, over 1.9 million pieces have been shipped within a year of launch.
- Mass production started for an EGR controller cumbustion Regulator, a unique product to aid meeting the Bharat IV norm
Sundaram Brake Lining Limited
-In the FY ended March 31, 2017, Sundaram Brake Lining Limited incurred R&D expenditures of INR 76.9 million.
-The following are specific R&D activities that Sundaram Brake Lining Limited carried out in the FY ended March 31, 2017:
- Developed and obtained OEM approval for Drum Brake Linings for Heavy Truck and Bus applications.
- Developed and obtained OEM approval for Drum Brake Lining for Light commercial vehicle applications.
- Developed and obtained OEM approval for New grade Woven clutch facings for Commercial vehicle application.
- Developed & improved an affordable vehicle data acquisition system - DEFCON (Driver's Experience of Friction Conditions) and collected actual field duty cycle data for understanding and improving new and existing product performance.
Sundram Fasteners Limited
-R&D expenditure for the FY ended March 2017 was INR 154.5 million. The company conducts R&D activities at Padi, Velappanchavadi and Hosur facilities.
-The following are specific R&D activities that Sundram Fasteners Limited Limited carried out in the FY ended March 31, 2017:
- FEA and modeling software AMC are utilized for upgrades and associated derived benefits. Development of light weight fasteners
- Ultrasonic cleaning machine introduced to supply contamination free parts. Heat treated bars procured for production of studs of length greater than 150mm
- Change of process for higher size nuts - Hot forging route adopted from Cold forging route.
- Development of new pre-alloyed medium hardenable alloy iron powder with nickel and lead.
- Development of high compressibility hybrid alloy iron powder variant for manufacture of sintered parts along with development of high density sintered rotors
- Development of low speed synchro hubs, sintered aluminum gerotors, and rotors for variable displacement oil pumps
Sundaram-Clayton Limited
-In the FY ended March 2017, the company invested INR 136.1 million in R&D.
-The following are R&D activities that Sundaram-Clayton completed during the FY ended March 31, 2017:
- Developed 47 new aluminum die cast products for automotive applications.
- Developed Abrasive Flow Machining (AFM) process to improve the surface finish of a specific product, pre-product technology for the customer
- Improved material yield in die casting through design optimization. (v) Established semi-solid casting.
- During the year the Company filed a patent for a new technology viz., surface finish and efficiency improvement and published the same at the international bureau in March 2017.
- The Company is also actively working on filing patents for unique processes, like distortion correction technique for heat treated components.
- So far the Company has filed four patents in total.
- Establish thermal design for High Pressure Die Casting (HPDC) and Gravity Die Casting (GDC) dies to control thermodynamics and kinetics during solidification.
- Development of semisolid casting for identified parts to improve casting quality.
- Establish water-free die lubrication in one die casting cell.
Wheels India Limited
-In the FY ended March 31, 2017, Wheels India invested a total of INR 128.8 million on research and development.
Investment in India for FY ended March 31, 2018
Sundram Fasteners Limited
-Sundaram Fastner incurred INR 2,170 million towards capital expenditures on existing and new projects. Capital investment expenditures were incurred in tandem with production plans of key customers.
Harita Seating Systems Limited
-The Company has invested in new technology catering to customer requirements improving the overall quality of products with a new foam carving machine and a rexine heat sealing machine at the Hosur Plant.
India Nippon Electricals Limited
-During the FY ended March 31, 2018, a new Tech Center in Hosur will become operational with a mandate to provide contemporary solutions for two and three-wheeler & GP (general purpose) engine markets.
Investment in India for FY ended March 31, 2017
Sundaram-Clayton Limited
-Sundaram-Clayton Limited (SCL), announced to invest INR 4 billion over next three years to expand its facilities in India to cater the increasing demand in the Indian market. The investment will help its capacity to increase from 60,000 MT to 70,000 MT through its four-manufacturing plants in India. SCL has already invested INR 4.1 billion in India over the past five years.
Sundaram Fastener Limited
-Sundaram Fastener Limited has incurred capital expenditures of INR 2004.4 million for existing and new projects. Capital investments were incurred to dovetail production plans for key customers.
Investment in India for FY ended March 31, 2015
Sundram Fasteners Limited
-Capital expenditures for the FY ended March 2015 was INR 1,180 million.
Investment in India for FY ended March 31, 2014
Sundram Fasteners Limited
-Sundram Fasteners incurred capital expenditures of INR 1,508.2 million in the FY ended March 31, 2014.
-Sundram Fasteners opened a new factory at Mahindra World City to develop and manufacture various types of shafts. Operations at the plant began in early 2014.
India Japan Lighting Private Limited
-In 2013, the company established the second plant in Chennai in order to meet increased demand.