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Anand Automotive Limited:
leadership development process
for creating strategic impact

Sumi Jha and Som Sekhar Bhattacharyya

Sumi Jha and
Som Sekhar Bhattacharyya
are both based at the
National Institute of
Industrial Engineering,
Mumbai, India.

Disclaimer. This case is written
solely for educational purposes
and is not intended to represent
successful or unsuccessful
managerial decision making.
The author/s may have
disguised names; financial and
other recognizable information
to protect confidentiality.
Mr Kawaljeet Singh Bhullar, the Group Head of Human Resources (HR) of Anand Automotive
Limited (AAL) was sitting in the lounge of Mumbai airport. He was waiting to board his flight
back to New Delhi (the corporate office), after a visit to the Pune plant. He felt that the
difference in March temperature between Mumbai and Delhi was pretty perceptible. He was
thinking that it was similar to the feelings on HRM practices he generally had, after visiting
any of the 49 AAL manufacturing facilities and while heading back to the corporate office
(AAL, 2012c).

Mr Bhullar was wondering what more possible efforts and direction were needed to diffuse
an HR centric perspective, which touched the corporate office and all the manufacturing
facilities alike. He thought, as he was taking the aerobridge to board the aircraft, that AAL
had gone a long way to bring in a robust leadership development programme and activated
an organization wide leadership development pipeline. In the last ten years, novel HR
practices had been continuously designed and implemented to make AAL the revered
employee brand that it had now become. He felt that the aerobridge for AAL had been built.
Mr Bhullar was thinking what were the structural and leadership decisions he could initiate to
pave the future path for a strong and sustainable AAL which could fly high in the open sky of
the global market place. He believed strongly that the strength and essence of AAL resided
in its HR capabilities. He contemplated that HR practices for leadership development at AAL
should be able to identify the best talent, reward and retain them, and continuously groom
them for higher leadership positions.

AAL, based in an emerging economy (India) and a part of a growing sector (automotive
ancillaries), had to develop (by necessity not by choice) to maintain its leadership position,
which it had gained since its inception. Mr Bhullar felt that the Anand leadership programme
was a robust system. Though, he felt that the talent feed getting into it had to be of the
desired quality and of sufficient quantity. He was contemplating increasing the spread and
distribution of transformational leadership. Being an export-oriented firm catering to the
needs of the worlds automobile manufacturers, he felt that the top management of AAL
should have a requisite techno-managerial knowledge base, the ability to adapt to varying
circumstances, be able to assimilate and tolerate different cultures and have a grand vision
to hold leadership positions in the global market. The question was how to synchronize the
corporate leadership development to create strategic impact at AAL. Mr Bhullar believed
that then AAL would surely fly.

1. Anand Automotive Limited

AAL made its footprint in Indian business on 24 February 1961, when Gabriel India Limited
started its operations for manufacturing shock absorbers in Mumbai, located in Western
India (AAL, 2012c). Over the years, AAL had become one of Indias largest premier
automotive systems. AAL had been a component provider catering to almost every vehicle

and engine manufacturer in India. AAL had reached a sales turnover of USD1.2 billion in
2012 and had a target of achieving sales of USD2 billion by 2015 (Internal Documents of
AAL, n.d.). As of January 2013, AAL had 19 companies spread across 49 plants in 11
locations in nine states of India (Exhibit 1) (AAL, 2012c). For business level details of AAL
refer to Exhibit 2 (AAL, 2012b). Exhibit 2 lists the company names, its products, joint venture
and technical licenses. AAL had also established successful partnerships with global firms
(AAL, 2012b). Over the years these international firms were leaders in the auto ancillary
sectors. AAL had established six technical licenses, 15 joint ventures and 21 global
partnerships (AAL, 2012b). The top management of AAL was proud of these partnerships as
it held testimony to Anands well-recognized spirit of partnership. Since inception, the
company had been a market leader for auto ancillary products, a position unchallenged
even in the new millennium. AAL objectives and vision are:

1. AAL organizational objectives:

B to be a world class manufacturing organization;

B to have people orientation;

B to grow ahead of the market;

B to maintain desired return on investment; and

B to have continuous improvement orientation.

2. AAL organizational vision:

B develop corporate competence to act globally;

B aspire and dare to be innovative;

B attain leadership in technology;

B achieve excellence through entrepreneurship; and

B bridge the gap between precept and practice.

India has tremendous opportunities in terms of automobiles and auto ancillaries business.
Table I provides the details on growth of certain industries in the automotive sector for the
year 2011-2012.

Table II shows the growth for the auto ancillary industry in the different segments.

Table I Auto industry growth rate

Industry Growth rate (%)

Two wheeler industry domestic 14.1
Two wheeler industry export 35.0
Commercial vehicles 10-13
Passenger car export 14
Auto ancillaries 28

Sources: Compiled from Ernst and Youngs (2012); CRISIL (2012); KPMG (2012)

Table II Auto ancillary Industry growth rate
Industry Growth rate (%)
Two wheeler 18
Three wheeler 2
Commercial vehicles 21
Passenger car and utility 14
Auto ancillaries 53
Sources: Compiled from Ernst and Youngs (2012); CRISIL (2012); KPMG (2012)


India has also become one of the major centers for automobile manufacturing and
Volkswagen, Ford, Honda, Hyundai, Skoda, BMW, etc. have manufacturing bases in India.
This is in addition to indigenous Indian companies like Maruti, Tata Motors and Mahindra and
Mahindra. As reflected in Table II, the growth in the automobile and auto ancillary sector in
India brings many opportunities for firms like AAL. Also as reflected in Table I, the export
opportunities of auto ancillary components have been rising, providing opportunities of
growth for AAL. AAL from its very inception has been an exporter and a premium and reliable
supplier for major Indian corporations. Table II indicates that this growth story should
continue well into the second decade of the new millennium. Information provided in Tables I
and II has been collected from Ernst & Youngs (2012), CRISIL (2012), KPMG (2012).

2. Leadership development at AAL

AAL, being a manufacturing firm, has been strongly dependent on the available HR for its
value creation. AAL in the last five decades of its existence embarked on diversification and
expansion of its business to cover a wide breadth of auto ancillary components
manufacturing and their export. The technological progress and the growth of the market
worldwide of the auto industry had constantly influenced AAL. As presented in Tables I
and II, even in the domestic market Indian automotive industry underwent metamorphic
changes and growth which also had a bearing on AAL. Generally, these changes required
AAL to produce high quality, high value products. Thus, AAL as an organization had been
constantly confronting changes to adapt to the changing needs of the auto industry.

AAL top management from the very beginning understood that organizations having a
critical mass of employees who demonstrate leadership traits and qualities would be better
able to embrace change and grow successfully (Ernst & Youngs, 2012). Leaders at AAL
were expected to adapt to change comfortably and help others to be in tune with changing
organizational needs. Hence, AAL was required to have an HR system which would be
producing employees having leadership traits.

3. The Anand way model

Mr Bhullar, at the helm of HR affairs of AAL, with a lot of passion and energy, commented that
he felt that he was as fresh as a young recruit in the organisation. Over the years, Mr Bhullar
had ensured that he personally met and interacted with all the new recruits during their
inductions (Internal Documents of AAL, n.d.; AAL, 2012d).

He stated that, when in the 1970s and 1980s the top management of AAL interacted with the
clients of AAL in Japan or in Europe and globally in the various developed countries, they
used to be both amazed and impressed by their work ethic, quality consciousness and their
one firm and firm centric thinking. They had a dream of making AAL such an organization in
future. Back home in India, the very senior leaders at AAL were searching for a perspective
that could bind and build AAL for such a state in the future. The outcome of their
considerations was the philosophy that was later christened as The Anand Way (Exhibit 3)
(Internal Documents of AAL, n.d.; AAL, 2012d), the way AAL was to do its business in future.

Mr Bhullar, while addressing new recruits at a formal gathering at Parvanoo at the Anand
University (AU; CRISIL, 2012) (the corporate university of AAL) talked passionately about
The Anand Way, while the recruits listened intensely:

The Anand Way model is like an onion with three layers, the first layer guides the second layer and
the second layer guides the third inner most layers. The innermost layer consists of the four corner
stone philosophies of AAL. The four cornerstone philosophies help in developing the eight tenets
which in turn help to define and reinforce The Anand Way. The outermost layer is all about a
leadership focus of AAL. This helps AAL to achieve the aspiration to become a world class player.
This is important for AAL because AAL is an export-oriented firm, in a highly competitive and
quality conscious auto ancillary industry. The second layer is all about AAL being driven as a
unified corporate entity (conceptualized as first pillar) to attain the organizational goals
demonstrating a value focus, to provide equal opportunity to all (the second pillar) so that people
get developed and found new ways for achieving organizational targets. The third pillar of the

second layer was regarding being committed to social responsibilities that help in enabling
people. The innermost layer had had four corner stone philosophies which led to The Anand
Way. It is demonstrated by being value focused, develop people, find new ways and enable
people. These four philosophies guide the eight tenets for achieving The Anand Way. The first
philosophy of developing people is achieved by providing continuous education to all the layers
of employees so as to nurture their talents and skills. This nurturing of skills and capabilities
endow the employees with the capability to innovate. The philosophy of finding new way, works
by recognizing and rewarding the work done by individuals at different layers. Plus, an
atmosphere for encouraging innovation is created so that individuals think novel and would

See Exhibits 4 and 5 for the philosophy and values of organization.

One of the recent recruits during the coffee break remarked to a new recruit that:

At AAL we as youngsters are not afraid to experiment because we are always encouraged by our
superiors to constantly improve things by generating new ideas and then experimenting. In the
worst case if things do not work out at AAL we take the failure as a learning experience, a
necessary evil in striving for growth.

Mr Bhullar supported the point made by commenting that:

The philosophy of enabling people work, as transparency in all forms is encouraged and
individuals are empowered to voice their opinion and perspectives. The free movement of ideas
and perspectives of employees across the organization help the organization to chart out the best
possible course of action. Further, employees are bound with values and integrity, which results in
honest communication. All these contribute towards working and building The Anand Way.

The Anand Way, the guiding force for managing AAL, set the direction for the ALDP for
practicing the leadership process at AAL. The Anand Way channeled the ALDP process to
emphasize nurturing talent and supporting continuous education. The objectives (Internal
Documents of AAL, n.d.) of the ALDP programmes were to:

B improve operational effectiveness of employees in their current role;

B bring positive behavioural changes in the employee; and
B prepare the leader for the transition from current role to possible future responsibilities.
The mission of ALDP was thus to develop and maintain a pool of high potential and high
performance individuals. ALDP was expected to take care of leadership roles of future
business and functional responsibilities across businesses and functional boundaries of
AAL and amongst its JV partnerships.

4. Anand leadership development programme

In 2000, AAL had put in place the ALDP (Exhibit 6) to create a sustained supply of leaders in
the organization. The ALDP pipeline is shown in Exhibit 7. ALDP had five levels at which
inputs were provided to develop an individual to become a top leader at AAL. The five levels
of leadership are shown in Table III (Internal Documents of AAL, n.d.).

4.1 Selection criteria of different ALDP levels

The journey in the ALDP process for an employee begins with the selection as an Anand
Mentee (AM). For selection as an AM a sr engineer/sr officer/sr executive/assistant manager
in L1 and staff/operating engineer/jr engineer/engineer/officer/executive in L0, who
simultaneously fulfills the following five criteria could enter the selection process (Internal
Documents of AAL, n.d.; National Institute of Industrial Engineering, n.d.):

B having consistent very good performance in annual appraisal rating;

B minimum two years experience at AAL;

B being less than 27 years of age;

B merit listed in caliper profile (Caliper, 2013) as reviewed by an empowered panel, and
finally; and


Table III ALDP Leadership levels

Level/position Designation

ALDP level
nomenclature Remarks

Level L1 Sr engineer/sr officer/sr
executive/assistant manager
AM A young professional with three to four years
experience, who is at the threshold of changing
direction from managing self to managing others and is
required to develop new skill sets, having maximum age
of 27 years
Level L2 Manager/senior manager AT A middle management professional below the age of 33
who needs to reorient himself/herself to becoming
effective functional head
Level L3 Deputy general manager/
general manager

Level L4 Vice president/senior vice
president/director/sr director
Level L5 President/CEO

Source: Internal Documents of AAL (n.d.)
AL A senior executive under the age of 38 identified to head
businesses and therefore needs to develop a strategic
Top leadership Senior most organizational executive handling strategic
aspects of AAL

B demonstrating a desired level of coachability and commitment to practice as per the
information gained by discussion and interviews.

AAL takes care of individuals who fall outside the AM criteria using routine Anand HR
practices. The channels of entry for ALDP are shown in Exhibit 8. The selection for the next
level in the ALDP is for Anand talent (AT). AT is selected from manager and senior manager
levels. The selection criteria for AT remain the same as of an AM. The only two differences are
in the age of individuals and the assessment of candidates by an empowered panel for
exploring the potential of leadership in the candidates for AT which is not there at AM level.
The age of the individuals for selection should not be more than 33 years. The selection
process is elaborated in Exhibit 9.

The individuals to be selected at the Anand leader (AL) stage are drawn from deputy general
manager and general manager levels. The selection criteria for AL (Exhibit 10) use the
combined inputs from annual appraisal reports and information gained via discussion in
interviews. The potential of the candidate for top leadership is assessed by an empowered
panel (AU nominated individuals proficient in reading caliper profile and placed two levels
above the employee). Further, the age of the candidate should not be more than 38 years.
For the fourth and fifth levels, for top leadership selection, in-depth analysis and evaluation
of strategic leadership skills of the candidates are carried out by AAL top management.

5. ALDP process

Upon successful selection into the ALDP program the AM is enrolled in a mentoring process.
This mentoring is done by the mentees immediate superiors. AAL corporate university AU
(see Exhibit 11) (AAL, 2012a) collect data on actions and behavior both technical and
people oriented of the individual AM. The actions and behaviours of the individuals are
classified in three categories start/continue/stop (Internal Documents of AAL, n.d.).
An individual (mentee) might possess some desired actions and behavior. In the mentoring
goal setting process, the mentor advises the mentee to continue and continue the desired
actions and behavior possessed by the mentee. Certain behaviours of the mentee might be
undesirable or might suffer from lacuna. Mentors engage with the mentee so as to stop the
mentee from demonstrating undesired actions and behaviours. There are certain actions
and behaviours in an individual which they might not possess but was desired to have for
benefit of both the organization as well as the individual. The mentor and mentee would set
up a goal in such cases to start and build up the required actions and behaviours. All mentor-
mentee goals are set up based on multiple sittings and continuous dialogues. The goals set
are time bound. Since, the individuals have a number of strengths and areas of
improvements, vetting and prioritization of what actions and behavior have to be started,

continued and stopped are carried out. Once the prioritized goals of an individual mentee
are identified, using Hoshin Kanri X matrix (Internal Documents of AAL, n.d.),
organizational/departmental/mentoring goals and action plans are identified and aligned.
In this process correlations between following aspects are explored (Internal Documents of
AAL, n.d.):

B organizational and departmental goals;

B departmental and mentoring goals;

B mentoring goals and action plans; and

B organizational goals and action plans.

Subsequent to the prioritization and finalization of identified goals, force field method
(Internal Documents of AAL, n.d.) is used to achieve the desired state of actions and
behaviours. Force field analysis in general outlines a set of factors (forces) that influence a
situation. In the force field method the mentors try to reduce the strength of opposing forces
and amplify the forces pushing towards the achievement of the goal. The cycle of mentee
start/continue/stop areas of intervention list preparation, area prioritization, goal congruence
checking, application of force field method and detailed action plan preparation are done in
three months. The mentoring process continues for 21 months. The mentor and mentee meet
monthly to explore and clarify road blocks. This exploration helps in action, applications and
for goal target achievement. The goal targets are measured in measurable outcomes. Once
set goals are achieved, the next set of prioritized goals are addressed. Monthly mentoring
reports are prepared and sent to AU. When all goals of the mentee have been achieved, the
mentoring process is terminated and a final mentoring report prepared. To help the Anand
mentee transform from just managing self to an expanded role of managing others, learning
events (LE; Internal Documents of AAL, n.d.; AAL, 2012a) are employed. LE are carried out
internally and with the help of external organizations. In the external LE engagements, AMs
are sent to a 25 month sponsored distance learning programme in esteemed empanelled
business schools in India. In the internal LE, which are carried out by AU, six compulsory LE
are completed, namely communication Parts I and II, team building, supervisory skills,
personality development and execution excellence. These LEs are conducted as short-term
courses at AU. In the LE 85 percent minimum attendance is required to successfully
graduate from the Anand Mentorship programme.

LEs are also used to transform AT from functional roles to business head roles and ALs from
business to strategic roles. LE for AT and ALs revolve around three compulsory and three
optional courses. The compulsory courses are on introduction to coaching processes,
inspired communication on business etiquettes and five-step discovery process. The six
optional courses which are offered by AU are on innovation, project management, emotional
intelligence, financial thinking, transaction analysis and execution excellence. Of these six
optional courses candidates select three LEs. There is a minimum 85 percent attendance
requirement for successful completion of the AT LEs. The generic area of coaching at LE
comprises transcending beyond functional mindset, communicating effectively with all
stakeholders and aligning with organizational imperatives.

The Anand leadership programme is a joint responsibility of the supervisor, mentor, mentee
coach and coachee. AU deeply and continuously engages in successful administration of
the AM programme while the chairmans office provides support as and when required.

6. HR practices support for ALDP

The ALDP ran with the support of the various AAL HR initiatives like recruitment,
performance appraisal, training and development inputs and such others (Internal
Documents of AAL, n.d.).

AAL engaged itself right from the inception in various HR initiatives. Regarding the
importance of HR initiatives at AAL Mr Bhullar remarked that:

HR is in our genes. In HR investments we do not look for returns. Any HR input will have a positive
output if one has patience. HR is like continuous education and it requires investments. It is wrong


to think that education or HR is expensive because if one thinks education is expensive, one can
try ignorance.

The genesis of HR practices at AAL began with the training programme. It focused on
leadership at AAL. The training and development at AAL also comprised cross-functional
exposure, placement with collaborators, interaction with in-house faculty and AU and
sponsorship for part-time and full time courses. The AU played a central role in providing
training and development facilities at AAL. The impact of training and development is
gauged by the training effectiveness monitoring (TEM) of Kirk Patricks model at four
different levels namely reaction, learning, application and impact level. The training and
development programme list for the employees of AAL were derived from the five Anand
production system (APS) (Exhibit 12) sections. Different sections of APS required different
set of training programme for employee development (Exhibit 13). The vital step of HRM at
AAL was to deal with recruitment and induction of new recruits. According to the statement
of a senior level HR manager (National Institute of Industrial Engineering, n.d.), involved in

The recruitment policy of AAL comprise of a uniform process of recruitment followed throughout
the Group. Equal opportunity and fair treatment is provided to all recruits at all the input levels.
Women candidates are given preference, while employees from AAL are given preference over
candidates coming from outside.

The manager further commented:

These aspects of recruitment help in attracting similar standard quality of candidates in the
organization for all the 19 companies. The candidates once recruited slowly became part of the
culture of AAL.

A point which can be highlighted in recruitment practices of AAL is its operating engineer
(OE) model. This unique HR practice at AAL resulted in AAL not having a unionized work
force. Instead of worker and management, all plants of AAL had only management
classification. Generally, operating engineers had to work hands-on for three to five years;
thereafter most of the operating engineers moved into the first level of supervisory job
function like in maintenance, process quality and process engineering. AAL, because of this
OE concept, had been able to not only maintain union free but also a young and agile work
force. This had made AAL a flexible organization, plus one with a continuous improvement
culture because of the over whelming presence of young people. Further, over the years
career progression of the individual was progressive and synchronous with the growth of
AAL as an organization (Internal Documents of AAL, n.d.). Another major practice of HR at
AAL was the performance management system (PMS; Internal Documents of AAL, n.d.).
The PMS had two objective components at AAL, appraisal and development, which
contributed to leadership building in the organization.

The appraisal component of PMS had the objectives of:

B providing direction to employees to achieve organizational goals;

B providing the basis for compensation review for the HR department for employees; and

B identifying top and bottom performers amongst employees in the organization.

The performance appraisal at AAL happened twice a year. On the efficacy of the appraisal
process Mr Bhullar remarked (AAL, 2012d):

AAL appraisal process is well defined. The performance appraisal is done taking into the views of
the individual self, superiors and review by the next superior of the employee. In performance
appraisal key result areas has 75 percent weightage while 25 percent weightage is given to
competencies. The performance appraisal is used for deciding regarding the compensation of
employees, promotion of employees, identification of talent and finally for figuring out the training
and development needs of employees.

The KRAs of AAL employees were established starting with the companys objectives and
subsequently narrowing down to the individual level. The company set its objectives in terms
of quality cost growth delivery profit (QCDGP; Internal Documents of AAL, n.d.). The QCDGP

Leadership development,
Strategic impact of leadership
development process
objectives helped in identifying the projects and the people assigned to particular projects.
QCDGP objectives were first set and then achieved by measurable targets and milestones
at various meso-levels in the organization (like departments, teams and project groups).
The KRA (Internal Documents of AAL, n.d.) of the individuals were deduced from these.
The annual appraisal rating had been based on individual employees meeting the planned

The compensation system in AAL had two components, fixed and variable. Compensation
review (Internal Documents of AAL, n.d.) was done by an external agency once in two years.
The variable component, management incentive bonus plan, for levels above Level 2 were
7-15 percent of total compensation. The variable component of the compensation system
aimed to suitably reward high performing employees (Internal Documents of AAL, n.d.).
The HR function of AAL, to understand job and compensation structure in a better fashion,
conducted job evaluation at a fixed cycle. Job evaluation at AAL consisted of three
components given by Hays group. This comprised the know how factor, the problem
solving factor and the accountability factor. The qualification, the experience and the
technical competency of an individual demonstrated the know how available for a job to be
done. Better quantity and quality of know how helped in better problem solving. The job
evaluation process of problem solving consisted of scope of responsibility, authority and the
job autonomy drawn from the job, the complexity of the job, the nature of communication
associated with the job. The accountability factor of the job consisted of the revenue/budget
performance, span of individuals impacted by the job, the influence of the job on geography
of organizational facilities. Job evaluation helped in measuring the maximum job value and
this was linked with the compensation package associated with the job. Compensation was
supposed to adequately reward the high-performing talents at AAL.

The AAL talent management for leadership programme developed an individual for
performing in the three components of know how, problem solving and accountability
factors. These three components initially served as areas of input to identify talent for
leadership development and to feed the leadership pipeline. Finally, the mentioned three
components also serve as the performance measurement areas by which managers were
judged and compensated. Mr Bhullar wondered what next could be done to better the ALDP
process and further cement it with the AAL HR practices.


AAL (2012a), available at: (accessed 22 May 2012).

AAL (2012b), available at: (accessed 22 May 2012).
AAL (2012c), available at: (accessed 22 May 2012).
AAL (2012d), Interview with Mr K.S. Bhullar, Interview with Mr. K. S. Bhullar, The Group Head of Human
Resources (HR), Anand Automotive Limited, 20 March 2012, on his visit at Mumbai, India.

Caliper (2013), available at: (accessed
12 January 2013).

CRISIL (2012), CRISIL CRBCustomised Research Bulletin, available at:
CRISIL-Research-cust-bulletin_mar12.pdf (accessed 13 February 2013).

Ernst & Youngs (2012), Ready for the Transition, available at:
content/uploads/downloads/2012/03/india-attractiveness-final-version1.pdf (accessed 13 February,

Internal Documents of AAL (n.d.), Anand Leadership Development Programme Manual.

KPMG (2012), The Indian Automotive Industry, available at: (accessed
13 February 2013).

National Institute of Industrial Engineering (n.d.), Interview with employees (Graduate trainees and
Managers) on October, November 2011 and March May 2012, during their visit to National Institute of
Industrial Engineering, Mumbai, India.


Exhibit 1
Figure E1 The geographical footprints of AAL



Delhi (Corp.Office)






Plants 38
Locations 11



Exhibit 2

Table EI AAL business level units, products, joint ventures and technical licenses details

Company name Products Joint ventures/technical license

Behr India Limited Climate control, engine cooling module system Behr GmbH & Co. KG, Germany
Charge air cooler
Vasco fan drive system
Chang Yun India Limited Brass syncroniser rings CY Myutec, Korea
Single cone
CY Myutec Automotive India Limited Syncroniser rings CY Myutec, Korea
Faurecia Emission Control
Exhaust systems
Catalytic converters
Side impact beams
Reinforcement panel assembly
Faurecia Emission Control Technologies,
Sango, Japan
Federal-Mogul Bearings India Limited Engine bearings, bushes, solid flanges,
Federal-Mogul Corp. USA
Gabriel India Limited Shock absorbers, struts, front forks KYB Corp. Japan, KYBSE, Spain
Yamaha Motor Hydraulic
System, Japan
Haldex India Limited Manual Brake Adjusters Haldex AB, Sweden
Self-setting automotive brake adjusters
(S-ABA) air brake components Consep
Henkel Teroson India Limited Adhesives, sealants, coatings Henkel Teroson GmbH, Germany
Sunrise MSI, Japan
MAHLE Filter Systems India Limited Air filters, oil filters, fuel filter, air handling
MAHLE Filtersysteme, GmbH Germany
Mando India Limited Hydraulic Brakes Mando Corporation, Korea
Shock absorbers Continental Teves, Germany
Brakes systems
Shock absorbers
Electronic power steering
Perfect Circle India Limited Piston rings, castings MAHLE GmbH Germany
Ductile castings
Static iron

Shims and plates

Spicer India Limited Axles Dana Holding Corporation, USA


Driveline components

Takata India Limited Safety products Takata Corp., Japan
Valeo Friction Materials India Limited Clutch facings Valeo, France
Victor Gaskets India Limited Non-asbestos gaskets

Cylinder head Hamamatsu Gasket Corp., Japan

Manifold exhaust & intake

Valve cover, oil pan

Heat Shield


Exhibit 3
Figure E2 The Anand way

Exhibit 4. The ten tenets of AAL philosophy, belief and style

B to have a grand vision;

B to manufacture using the latest technology;

B to be people centric;

B to be well planned and well prepared;

B to embrace globalization;

B to have customer focus;

B to respect organizational goals above individuals, teams and departments;

B to have strong quality consciousness;

B to communicate openly and widely; and

B to take care of community.

Exhibit 5. AAL values

B drive Anand as a unified corporate entity;

B aspire to be a world-class organization;
B encourage organizational transparency;
B value integrity;
B encourage innovation;

B nurture talent;

B support continuous education;

B build trust and empower people;

B practice open and honest communication;

B recognize and reward achievement;

B equal opportunity employer; and

B committed to social responsibility.
Exhibit 6

Figure E3 The Anand Leadership Development Programme



Young Talent (YT)

White Belt/Green

YTs+ Bus. School
Graduates with
O/V rating

Anand Mentor Programme

Mentoring by

AMP + External
Talent Acquisition
with min.2 years
service in Group


Anand Talent (AT)

Anand Leader (AL)
Black Belt/VLFM
Coaching by
APC/AMC Members
Cross Functional/
Across JV Mobility

Coaching by
Independent Directors
Leadership Roles

Exhibit 7

Figure E4 The Anand leadership pipeline


Exhibit 8
Figure E5 The channels of entry at Anand leadership development

Exhibit 9

Figure E6 Selection process for AT


Exhibit 10

Figure E7 Selection process for AL

Exhibit 11. Anand University
The HR training programme focusing on leadership at AAL started in the early 1990s with the
engagement of an external consultant to impart leadership skills to the managers. All the
managers were trained in this programme. By 1994, since the demand for leadership
training increased in AAL, the external faculty developed and certified senior level managers
of AAL to become instructors in order to have more trainers internally at AAL. By 1994, the
concept of lean thinking started making inroads in the AAL top management psyche. To
percolate this thinking in junior and middle level management AAL established its first centre
near its manufacturing facility in Parvanoo, Himachal Pradesh, India, to impart training
programme on excellence in manufacturing. Over the years, the culture of getting training
and education had caught momentum at AAL and the senior managers because of this
demand made the small education centre located in Parvanoo into AU having full time
faculty members. AU was headed by Mr Sai Ratnam who was a master black belt himself.
Over a period of time many educational and training initiatives were undertaken at AU like
training on black belt, white belt, green belt, manufacturing and other quality focused and
related programmes. AU the corporate university had its main campus in Parvanoo, while it
had four extension campuses one each in Gurgaon, Nashik, Pune, and Hosur. The focus of
AU and its extension campuses was to link training and development of individual with
Anand performance system. The day-to-day training programmes like Six Sigma and other
operator training were also provided in the five campuses. Gurgaon Centre provides soft
skill training, Nashik Centre provides worker training, Pune Centre provides maintenance
and quality training and Hosur Centre provides Operating Engineer Training.


Exhibit 12
Figure E8 Anand production system

Step One: People Involvement
Involving people from the grassroots levels
and sharing the vision of becoming a world-
class company with them. This is the focus
of people keys:
--------------------------------------------------------- --
Key 2 Small Group Activities
Key 3 Idea Implementation
Key 4 Management by Objectives
Key 5 Skill Versatility

Step Three: Quality Maintenance
Making processes capable, improving
quality and solving problemseffectively,
with a special focus on developing supplier.
Keys for quality maintenance are woven
around the Six Sigma concept of stabilizing
the process and reducing variability for
consistent quality. The quality key sare:
Key 11 Process Capability
Key 12 Quality Maintenance
Key 13 Problem Solving
Key 14 Supplier Development

Step Five: Synchronized Manufacturing
As we move to wards the last section of 20
keys we see that the improvements we
make have started to yield result in terms
of synchronized flow throughout the value
stream and this synchronize manufacturing
comprises of three keys:
Key 18 Production scheduling
Key 19 Delivery performance.
Key 20 Coupled manufacturing and finally,
Small Group Activities
Idea Implementation
Management by Objectives
Skill Versatility
Step Two: Standardizing work place
Making the workplace organized, safe and
visual and creating work standards to
reduce variability. This is achieved using
workplace keys:
Key 1 Value Stream Design
Key 6 Safety
Key 7 5S
Key 8 Flow oriented Layout
Key 9 Visual Management
Key 10 Standardized Work

Step Four: Machine Effectiveness
Producing quality products and delivering
at customer send in time, would be
possible, only if we have reliable equipment.
There are three keys in this section:
Key 15 Productive Maintenance
Key 16 Efficiency Control
Key 17 Quick Change over
These keys help in improving equipment
effectiveness through productive
maintenance and quick change over and
the benefits include Zero Breakdown
Zero Accident and Zero Defect, which
translate to higher productivity and lower
production cost

Exhibit 13

Table EII APS and training at AAL

APS section Training programs

People Team building
Goal setting
Skill building
Workplace Value stream mapping
Layout and line balancing
Standards work tools
Quality Six Sigma white belt:
Basic statistical tools
Coverage 100 percent of the population
Green belt:
Basic plus advanced statistical tools
Coverage has to be 25 percent of the population (bench mark)
Black belt:
Advanced statistical and managerial skills
Coverage at least 1/100 (bench mark)
Machine effectiveness Autonomous maintenance (AM)
Planned maintenance (PM)
Focused improvement (FI)
Quick changeover techniques
Synchronized manufacturing Kanban
Production leveling

Corresponding author
Sumi Jha can be contacted at: