1

CHAPTER 1

INTRODUCTION

1.1 INDUSTRY PROFILE

Automotive spare parts and components are a lesser known industry yet a big one.
In past few years the industry has grown enormously, even more than the automotive
industry itself not only in the Indian but the global scenario.

The Indian auto component industry is one of India's sunrise industries with
tremendous growth prospects. From a low-key supplier providing components to the
domestic market alone, the industry has emerged as one of the key auto components
centers in Asia and is today seen as a significant player in the global automotive supply
chain. India is now a supplier of a range of high-value and critical automobile components to
global auto makers such as General Motors, Toyota, Ford and Volkswagen, amongst others.

As per a report by the Automotive Component Manufacturers Association of India

(ACMA), the turnover of the auto component industry is being estimated at around US$ 19.2
billion in 2009-10. The report states that 31 per cent of the auto component industry is
dominated by engine parts, 19 per cent by drive transmission and steering parts, and 12 per
cent each by suspension & braking parts and body & chassis, while equipment and electrical
parts capture 10 and 9 per cent, respectively.

The potential compounded annual growth rate (CAGR) of the auto component
industry is estimated to be around 19.2 per cent in the period 2009-10. Exports from the auto
component industry are estimated to be worth US$ 3.2 billion in 2009-10, according to the
ACMA report.

Europe accounted for 40.4 per cent of India's auto components exports in 2009-10,
followed by Asia with 23.8 per cent and North America with 22.6 per cent. The industry has
 2

witnessed a shift in the composition of exports over the years, with the original equipment
manufacturer (OEM/TIER 1) segment accounting for 80 per cent of exports in 2009-10.

The share of the aftermarket segment in auto component exports stood at 20 per
cent in the same year. Investments in the auto component industry are estimated at US$ 7.4
billion in 2009-10, according to ACMA.

DESTINATION INDIA

According to the Investment Commission of India, India is among the most

competitive manufacturers of auto components in the world. India is also becoming a global
hub for research and development (R&D).

Companies like Daimler Chrysler, Bosch, Suzuki and Johnson Controls have set up
development centers in India. Many international auto-component majors including Delphi,
Visteon, Bosch and Meritor have set up operations in India. Auto manufacturers including
GM, Ford, Toyota, etc. as well as auto component manufacturers have set up International
Purchasing Offices (IPOs) in India to source their global operations.

Further, increased demand for the passenger vehicles in the country created positive
impact for the auto component manufacturers. The component manufacturers registered 55
per cent growth on a year-on-year basis during the quarter ending March 2010. The growth
was attributed to the increasing demand of the original spare parts by the customer. On an
overall basis, 30 component makers saw rise in revenue in spite of global slowdown in the
auto sector. Major players like Bosch, Motherson Sumi and Amtek Auto reported nearly 50
per cent growth in topline, with double-digit surge in profit.

Figure 1.1: Auto components production split

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INVESTMENTS

Magneti Marelli, the auto component maker of Fiat group, has forayed into the
country's spare parts aftermarket by entering into a partnership with Carnation Auto, a multi-
brand car servicing facility. The company also plans to increase its revenue from India to
around US$ 429.66 million by 2015, and expects the country to grow faster compared to
other global markets.

 Hyundai Wia, the car component subsidiary of Hyundai Motor Company,

plans to set up an auto component facility at Nellore, Andhra Pradesh with an
investment of US$ 259.72 million. The facility is expected to be set up in two
phases and would become operational by April 2011.
 Rane Group, a Chennai based auto component manufacturer, is planning to
invest US$ 56.11 million for augmenting capacity for meeting increasing
demand during 2010-11.
 Ashok Minda Group, an auto component manufacturer plans to raise private
equity of around US$ 26.8 million for expanding its business.
 German automotive components company, Wallstabe & Schneider, has
established its Indian presence by signing a joint venture (JV) agreement with
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Thane-based Mecnam Products and Mumbai-based Deshmukh Rubber

Works Pvt Ltd.
 The world's largest automotive component manufacturer, Bosch, plans to
invest US$ 433.5 million in India over the next three years. "India will be an
important market for the company in the immediate future," said Bernd Bohr,
Chairman of the Stuttgart-based Bosch Automative Group.
 Tyre manufacturer, Apollo Tyres Ltd, is set to make Chennai its
manufacturing and research and development (R&D) hub and is establishing
a US$ 433.6 million manufacturing facility, which is likely to see an additional
investment of US$ 130.09 million.
 The Tamil Nadu government has cleared the proposal of tyre manufacturer,
JK Tyre & Industries Ltd, for setting up a new production facility in the state,
which would attract around US$ 346 million in investment.

POLICY INITIATIVES

The government has taken many initiatives to promote foreign direct investment
(FDI) in the industry.

 Automatic approval for foreign equity investment up to 100 per cent of

manufacture of automobiles and components is permitted
 The automobile industry is delicensed
 Import of components is freely allowed

The Ministry of Heavy Industries and Public Enterprises has envisaged the
Automotive Mission Plan 2006-2016 to promote growth in the sector. It targets to:

 Increase turnover to US$ 122 billion – US$ 159 billion by 2016 from US$ 34
billion in 2006
 Increase export revenue to US$ 35 billion by 2016
 Provide employment to additional 25 million people by 2016
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 The automotive sector is expected to contribute 10 per cent of the country's

GDP by 2016

The auto component industry welcomed the government's announcement of excise

duty rollback being limited to 2 per cent during the Union Budget 2010. The government also
announced the increase of the deduction limit for Research and Development (R&D) in the
sector from 150 per cent to 200 per cent.

LOOKING AHEAD

According to ACMA,

 Overseas auto-component manufacturers, especially small and medium

enterprises (SMEs) should invest more in capacity enhancements and
Greenfield manufacturing in India to meet growing domestic demand for
auto-components
 Investments in Auto-IT sector is a high potential area
 To encourage new wave of partnerships at the Tier 2/3 level covering the
entire automotive supply chain to address not only product technology, but
also "Process Technology"

Exchange rate used: 1 USD = 46.34 INR (as on June 2010)

ACMA
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 The Automotive Component Manufacturers Association of India (ACMA) is

the nodal agency for the Indian Auto Component Industry.

 Its active involvement in trade promotion, technology up-gradation, quality

enhancement and collection and dissemination of information has made it a
vital catalyst for this industry's development. It's other activities include
participation in international trade fairs, sending trade delegations overseas
and bringing out publications on various subjects related to the automotive
industry.

 ACMA is represented on a number of panels, committees and councils of the

Government of India through which it helps in the formulation of policies
pertaining to the Indian automotive industry.

 For exchange of information and especially for co-operation in trade matters,

ACMA has signed Memoranda of Understanding with its counterparts in USA,
Canada, UK, France, Italy, Spain, Japan, South Korea, Malaysia, Uzbekistan,
Pakistan, Australia, Egypt, Iran, Tunisia, South Africa. Thailand &
Scandinavia.

 ACMA represents over 479 companies, whose production forms a majority of

the total auto component output in the organized sector.

 In the domestic market, they supply components to vehicle manufacturers,

Tier-1 suppliers, to state transport undertakings, defense establishments, and
railways and even to the replacement market. A variety of components are
being exported to OEMs and aftermarkets worldwide.

 The industry has been exporting around 15% of its output and growing at the
rate of 30%. In the year 2003-04, industry has exported US$ 1 billion versus
US$ 760 million in year 2002-2003.
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1.2 COMPANY PROFILE

ROOTS INDUSTRIES INDIA LTD (RIL) is a leading manufacturer of horns in India

and the 11th largest horn manufacturing company in the world, Head quartered in
Coimbatore, India.

ROOTS have been a dominant player in the manufacture of Horns, Casting products,
Industrial cleaning machines, Precision products and other products like Electronic Horns,
Brake Shoes, Brake Pads, Halogen Lamps, Relays, Melody Makers, Roots Parking Guide
System, Piston & Rings, Flashes, etc.,

Since its establishment in 1970, ROOTS had a vision and commitment to produce
and deliver quality products adhering to International standards. With a strong innovative
base and commitment to quality ROOTS has occupied a key position in both International
and domestic market as suppliers to leading OEMS and aftermarket.

RIL is the first Indian and first manufacturing company in the world to get ISO / TS
16949 Certification based on effective implementation of QS 9000 Certification and VDA 6.1
Certification. Other certifications like E – Certification from Europe, ISO 14001 Certification,
and Q1 Certification add crowns to it.

Their competitors includes Bosch, Lucas-TVS, Minda Industries, Harley & Co,
Vibrant Auto components, National Electric company, etc.,
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Its customers include the massive automobile giants like Mercedes, Ford, Mitsubishi,
Mahindra & Mahindra, Toyota, Fiat, Tata Motors, Bajaj Tempo Ltd, Kinetic Honda, TVS,
Leyland, etc., Regardless of the vehicle you drive - from a Tata Motors truck to a Mercedes
car - chances are that you will be using a made-in-Coimbatore horn.

Roots Industries India Limited, one of the eight companies under the Roots group,
has been making electric horns since it started operations in 1970 as American Auto
Service. Besides a variety of horns, the Roots group now manufactures various auto
accessories, including halogen headlamps and fog lamps and parking and reversing
sensors. Its clients include such big names as DaimlerChrysler, Mitsubishi, Mahindra and
Mahindra, Toyota, Tata Motors, TVS Motor Company and Piaggio. Roots products find their
way to the United States, Europe, West Asia and Africa.

Thriving on high-end research and diversification, the Roots group also manufactures
a range of non-automotive products, including cleaning equipment, castings and precision
tools. The group is constantly innovating and developing original technology.

The technical collaboration with Bosch SA for auto products in 1995 set the group on
the path of sustained technical growth. It also has collaboration agreements with other
German companies for non-auto products - with Hako for multicleaners and Zinser for textile
machinery. The Roots group's obsession with technology is evident from the range of the
state-of-the-art tools it uses for R&D - solid modeling, hard prototyping, drafting and
graphics. Its metrology laboratory is a comprehensive calibration-cum-consultancy centre
that offers electrical, mechanical, pressure and vacuum calibration. It also offers specialized
CAD/CAM consultancy services for a range of products and industries.

1.3 THE FOUNDER:

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An obsessive hobby went into the making of this self-made industrialist. Born in an
agricultural family, young Ramasamy had a great interest in repairing automobiles. This led
to his getting the master's degree in Automobile Engineering from Lincoln Technical
Institute, USA in 1969 and developing a unique Radiator Coolant Recovery System, which is
today standard equipment in almost all vehicles manufactured by the advanced countries.

In 1970, Mr. Ramasamy promoted M/s. American Auto Service, which was taken
over in 1992 by Roots Industries Private Limited, a company promoted by Mr. Ramasamy.

This company entered into technical collaboration with Robert Bosch, the world
leaders in auto electrical to manufacture all the range of Bosch Horns.

Mr. Ramasamy had a very inquisitive and innovative temperament. This led to his
having many firsts in his distinguished career. Servo brakes were designed for the first time
in India by Mr. Ramasamy. He designed the first high frequency Wind Tone type horn which
was smaller and lighter than conventional horns. Besides all the other firsts, Mr. Ramasamy
introduced electronically controlled Musical Air Horns for the first time in the World. The thirst
for innovation and drive to move forward, led to the establishment of a die casting unit to
meet the captive requirement of ROOTS.
In 1987, Mr. Ramasamy set up a full-fledged modern tool room equipped with the
latest machines for the manufacture of precision tools and dies. He promoted Roots
Multiclean Ltd., a joint venture in Techno-financial collaboration with M/s. Hako Werke
 10

GmbH, Germany to manufacture world class Industrial Floor Care and Floor Cleaning
Equipments.

RMCL is successfully spreading the concept of Mechanized Cleaning in India and

also exports its products to various countries like Australia, Britain, Germany, Japan
Singapore, etc.

Mr. Ramasamy can very proudly claim that he is a self-made industrialist and in
recognition of the same, he has been conferred the Udyog Shree Award in the year 1990.
He has also been awarded the Udyog Rattan Award by the Institute of Economic Studies in
the year 1991.

Mr. Ramasamy has been awarded Udyog Patra Award by the Institute of Trade and
Industrial Development Delhi in the year 1992 in recognition of being a self made industrialist
and also his contribution to the economic development of the country along with Bharatiya
Udyog Jothi Award instituted by the Indian Institute of Entrepreneurship Development, Delhi.

Mr. Ramasamy has been conferred the Vikas Rattan Award and the Gem of India
award. He has been awarded Udyog Gaurav Award by All India Organization of
Entrepreneurship Confederation.

Roots Industries has been awarded the American International Quality Award in 1994
by Fulham Geissler Associates, USA. Mr. K. Ramasamy was Chairman of the Confederation
of Indian Industry Coimbatore. Besides this, he lends his leadership to a lot of other social
organizations and his dynamic presence is a driving force behind all the group companies of
Roots.

1.4 ROOTS GROUP OF COMPANIES:

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The companies are viz.,

 Roots Industries India Limited

 Roots Auto Products Private Limited
 Roots Multiclean Limited
 Roots Cast Private Limited
 Roots Precision Products
 Roots Metrology Laboratory
 Roots Polycraft
 R K Nature Cure home
 Satchidananda Jothi Nikethan
 Integral Yoga Institute
 Roots Industries Malaysia Sdn, Bhd.

ROOTS INDUSTRIES INDIA LIMITED

Roots Industries specializes in the manufacture of a wide range and line-up of

automobile horns. Roots is a leading supplier to all the major vehicle manufacturers
like Ford, Daimler Chrysler, Mitsubishi Lancer, Mahindra & Mahindra, Toyota, Tata
Motors, Fiat Uno and Siena, TELCO, TVS Motor Company, Kinetic Honda, etc.

Roots Industries places a premium on original technology and innovation.

Roots' indigenous talent has kicked off a spree of growth unmatched in the history of
automobile OE manufacturers.

ROOTS AUTO PRODUCTS LIMITED

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Roots Auto Products Private Limited (RAPPL), the largest supplier of Air
Horns in India caters to the needs of several OEMs: Ashok Leyland, Caterpillar India
and JCB Escorts. Roots Air Horns also find a place of pride in Passenger vehicles,
Trucks, Earth Moving equipment, Material Handling equipment, etc. Roots Air Horns
are exported to countries in North America, Europe, Middle East, Africa and SAARC
region.

ROOTS MULTICLEAN LIMITED

The genesis of Roots Multiclean Ltd., (RMCL) is due to the vision of the
promoter of Roots group of company about the requirement of sophisticated cleaning
equipment in the country following globalization of business and entry of Multi
Nationals who have very high standard of housekeeping. RMCL, situated in the
suburbs of Coimbatore, is a Joint Venture with Hako Werke Gmbh & Co., Germany.

It commenced manufacture of cleaning equipment in early 90s at its modern

factory located amidst natural greenery. RMCL is the sole representative of Hako
Werke Gmbh & Company's entire range of cleaning equipment for India and SAARC
countries. To improvise and facilitate a better service to its customers, RMCL has
established Regional offices in all Metros and a huge dealer network in bigger Cities
and States.

The superior quality products and the added advantage of good after sales
service has established the company as the country's largest manufacturer of floor
cleaning equipment.

RMCL started the manufacture of mechanized cleaning equipment in the

early 1990s through a techno-financial collaboration with Hako Werke, Germany. The
alliance became one of the most successful in the Indian industry.
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Today, in India, RMCL is the largest manufacturer and exporter of cleaning

equipment. A state of the art manufacturing facility and a comprehensive marketing
and After Sales Service network, enabled the company to deliver optimum solutions
for customer’s cleaning needs. Products from RMCL are built around eco friendly
concepts and comply with international quality and safety norms

Today, RMCL has grown into a leader in the Indian cleaning equipment
manufacturing industry and has a significant market presence in the world market. Its
domain expertise spans design, development and manufacture of cleaning
equipment.

Strategic alliances have strengthened its presence and broadened the scope
of its product offerings. RMCL is also the exclusive representative in India for several
well known and specialized manufacturers of cleaning equipment across the world.

The company derives its strength from an experienced talent repository,

comprising experts in technology, product design and development, research,
manufacturing and marketing.

ROOTS CAST PRIVATE LIMITED

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Roots Cast Pvt. Ltd., (RCPL) (formerly known as Aruna Auto Castings Private
Limited) was established in 1984 to meet the captive requirements of the Roots
group.

With its ever probing eye on the needs of the market, the company in the late
80s expanded its operations to manufacture High Pressure Die Cast Aluminum and
Zinc components to the exacting needs of various customers in Automobile and
Textile Industries with a high degree of Quality and Perfection.

RCPL now has established itself as a major player in the die cast component
manufacturing thanks to the expertise built in the core activities like tool design, tool
making and pressure die cast component manufacturing.

RCPL supplies machined castings and sub-assemblies as per customer

requisitions.

ROOTS PRECISION PRODUCTS PRIVATE LIMITED

Roots Precision Products was established in 1987 to address the in-house

tooling needs of the diverse industries in Roots group. Owing to continuous
improvement and investment into better resources, the company has become self-
sufficient.

It is catering to the needs of various industries. RPP acts as a one-stop

solution for tooling and precision machining.

ROOTS METEOROLOGY LABORATORY

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Roots' state-of-the-art Metrology Laboratory is a comprehensive calibration

centre in South India that offers mechanical, electrical, torque, pressure and vacuum
calibration instruments - all under one roof.

The laboratory is equipped with advanced facilities traceable to national /

international standards. RMTL is accredited by National accreditation Board for
Testing and Calibration laboratory as per ISO/IEC 17025: 2005 standards in the field
of Mechanical – Dimensions, Pressure/Vacuum, & Force.

The laboratory offers on-site calibration facility and serves the industry to

 Calibrate surface table

 Coordinate measuring machine
 Profile projector
 Toolmakers Microscope
 Pressure switches
 Pressure gauges
 Temperature indicators
 Temperature sensors/scanners
 Electronic transmitters
 Pressure reducing valves
 Ovens, etc.

The expertise of the laboratory has attracted many renowned Public and
Private Sector undertakings.

ROOTS POLYCRAFT LIMITED

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Roots Polycraft (PC) was established in 1988 to manufacture precision plastic

components. It is equipped with latest microprocessor injection molding machines to
maintain consistent process parameters. 

Over the years, Polycraft has gained skills and unique techniques to
manufacture small and medium size components for Automotive, Pump, Textile, and
Medical Industries besides meeting the captive requirements of Roots Group. Being
fully equipped to provide the best service, Polycraft has satisfied customers who
have helped augment its technological advances.

The Company's commitment towards the customer is demonstrated with

quality products and service. This has resulted in continuous growth and product
diversification. The process is closely monitored with proven techniques to obtain
consistently good quality parts.

R K NATURE CURE HOME

R K  Nature  Cure  Home   is the brainchild of Dr.Krishnaswamy Gounder.

The Home was inaugurated and blessed by His Holiness, Sri Swami Satchidananda
Maharaj, Yogaville, Virginia, USA. For the past 20 years, RK Nature Cure Home has
treated thousands of people including eminent personalities from USA, France, Italy,
Singapore, The Gulf Countries, Germany and UK.

R K Nature Cure Home was established way back in 1978 by Dr. R.

Krishnaswamy Gounder - a strong believer of Naturopathy - with a high goal of
promoting health in each and every individual through Naturopathy and Yoga.
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Started with a capacity of just 20 beds, R K Nature Cure Home has grown
into a full-fledged centre with 60 beds, capable of meeting the ever-increasing health
needs of the people. This new building was inaugurated by H. H. Sri. Swami
Satchidanandaji Maharaj, U.S.A., on 4th March 1984. This home is built in an ideal
location, has adequate and well furnished accommodations like General Ward,
Special Ward, Regular and Delux Cottages A/c. for inpatient treatment.

This RK Nature Home, a leading Nature Cure Centre in Tamil Nadu, has a
history of over 24 years of treating suffering humanity, scientifically based on
Naturopathic principles and educating them in managing day to day health problems.

SACHIDANANDA JOTHI NIKETHAN

The school, Satchidananda Jothi Nikethan, is a Matriculation, English

medium, co-educational, residential public school, secular in nature, which lays
emphasis on our great Indian culture, high moral values and universal brotherhood.

It provides, in addition to high quality education, excellent facilities for various

Co-Curricular Activities, Computer Education, Art, Yoga, Swimming, Karate, Music,
Dance, Ham Radio and various other club activities.

1.5 MILESTONES

1970
Promotes American Auto Service for manufacture of Electric
Horns.
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1972 First to manufacture Servo Brakes for Light Motor Vehicles.

Roots Auto Products Private Limited was established to manufacture Air Horns. 
1984
  Die Casting Unit commences commercial operations.
Polycraft, a unit for Plastic Injection Moulding was
1988
established.
Roots Industries Private Limited takes over Electric Horn
1990
business.
RMCL enters into Techno-Financial collaboration with M/s. Hako
1992
Werke GmbH, Germany.
Roots Industries Private Limited obtains the National
1992
Certification - ISI mark of quality.
Production of floor cleaning equipment commences.
1994   Roots Industries Private Limited wins American International Quality Award.

Becomes the first horn manufacturer in Asia to obtain QS

1999
9000
Becomes the first horn manufacturer in Asia to obtain VDA 6.1
2000
and the first in the world to win ISO / TS 16949
The first to introduce digitally controlled air horns and low
2000
frequency, low decibel irritation free Jumbo Air Horns.
Roots Industries Ltd., Horn Division is accredited with ISO
2003
14001 : 1996
Roots Industries Ltd., upgraded its ISO / TS 16949 from 1999
2003
version to 2002 version
Roots Industries Limited (RIL) opens its 100% exclusive Export Oriented Unit
2004 at their Horn Division, 
  Thoppampatti, Coimbatore to cater the needs of Ford North America.

2004 RIL's EOU commences its supplies to Ford, North America

Roots Multiclean Limited (RMCL) inaugurates its 100% EOU Plant at Kovilpalayam,
Coimbatore
2004

2004 RIL successfully launches its Malaysian Plant

The group company American Auto Service is accredited with

2004
ISO 9001 : 2000
2005

Roots Industries Ltd., is certified with MS 9000, a pre-

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requisite for Q1 award for Ford Automotive Operations 

  Suppliers. Focus on Systems and Processes

2005 Roots Metrology & Testing Laboratory has been accredited

by National Accreditation Board for 
  testing & calibration in the field of Mechanical – Linear &
Angular
Roots Industries Ltd., is awarded Q1 by Ford Motor
2005
Company

Roots Industries Ltd., Horn Division upgraded its ISO : 14001

2005
from 1996 version to 2004 version

1.6 QUALITY POLICY / PROCESSES

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They are committed to provide world-class products and services with due

concern for the environment and safety of the society.

Roots Industries India Limited - Quality Policy

This will be achieved through total employee involvement, technology up

gradation, cost reduction and continual improvement in

 Quality of the products and services

 Quality Management system

 Compliance to QMS requirements Quality will reflect in everything

they do and think

 Quality in behaviour

 Quality in governance

 Quality in human relation QUALITY - AN ALL PERVASIVE ENTITY

Roots is committed to manufacture customer-centric and technology-driven

products on par with international quality standards. For example, the horns

manufactured undergo a rigorous life-cycle test and are subjected to an endurance

of over 200,000 cycles of performance while the industry norm requires only

100,000.

What's more, Roots believes in a quality culture that goes beyond just

products. Equal emphasis is given to quality in human relation and quality in

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service. Roots in its journey towards Total Quality Management have reached

important milestones:

 ISO 9001

 QS 9000

 VDA 6.1

 ISO/TS 16949 and

 ISO 14001 Certification.

At present it is in the process of obtaining NABL accreditation for our

Metrology lab. The Group's TQM policy has a well-integrated Quality Circle

Movement with active employee participation at various levels.

1.7 ORGANIZATIONAL STRUCTURE

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Figure 1.2 : Organizational structure of RIL

EXECUTIVE CHAIRMAN

PLANT QUALITY IT FINANCE HUMAN

MANAGEMENT MANAGEMENT RESOURCE

SEC SEC IT1/SAP FIN1/13-19 HR1

PM1 QM1 IT2/DSO FIN11 HR2

PM2 QM2/3/4 IT3/HARDW FIN12 SO

MKT QM4 FO

ALE EXE TECH

PM3

PM4

SEC – SECRETARY

PM- PRODUCTION MANAGER

MKT- MARKETING

ALE – APPLICATION ENGINEERING

QM- QUALITY MANAGER

EXE TECH- EXECUTIVE TECHNICAL ASSISTANT

SO- SECURITY OFFICER

FO- FRONT OFFICE

CHAPTER 2
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THE DEPARTMENTS

2.1 PRODUCTION DEPARTMENT

Figure 2.1: Organizational chart of the Production Department

PLANT MANAGEMENT

SECRETARY

PM 1 PM 2 MKT ALE PM3 PM4

ASSEMBLY DESIGN

PRESS SHOP PROCESS ENGINEERING

P.C PURCHASE

PPC SUB-CONTRACT

PRODUCTION DEPARTMENT OF HORN DIVISION OF ROOTS INDUSTRIES

INDIA PVT LTD comprises of the following sections viz.,

 Press shop
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 Coil Winding
 Assembly Division

WORKING PRINCIPLE OF A TYPICAL HORN:

A simple horn consists of the following components.,

 Housing with SCR assembly

 Terminal base
 Coil
 Point plate
 Point holder
 Armature plate & Armature Rod
 Diaphragm
 Tone disc / Trumpet
 Grill
 Mounting bracket
 Turning Screws
 Gasket

THE PRINCIPLE:
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The AC supply to the terminal base lead to the flow of current through the coil
via the contact points between the point plate and point plate holders which in turn
induces an electro motive force inside the coil.

The magnetic field thus created pulls in the armature rod connected to the
diaphragm until it breaks the contacts of the point plate and the point plate holder that
breaks the flow of current thereby demagnetizing the coil. This pushes the armature
rod to its original position that strikes the diaphragm producing sound at certain
desired frequency that is amplified by the tone disc.

CLASSIFICATIONS:

Horns are of two major categories,

 Air horns
 Electric horns (Manufactured in ROOTS)
 Screw type
 Crimp type
 Rivet type

On the basis of the tone type it may be.,

 High tone
Sharp, focused and covers a long distance
 Low tone
Wide, blunt, less focused and covers a shorter
distance

THOSE MANUFACTURED BY ROOTS:

 Windtone
 Vibrosonic
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 Cleartone
 Bosch Range
 Roots 90
 Megasonic
 Smartone
 Spider
 FSA2
 R 70

THE PRESS SHOP:

The child parts for a typical type horn are manufactured inside the press
shop. The parts include.,

 Blank
 Housing with SCR
 Diaphragm
 Tone disc
 Keeper rings & Grills
 Mounting brackets
 Point holder & point plates

Figure 2.2: Organizational structure of Press shop

ORGANIZATION STRUCTURE:

HEAD
 27

ASSOCIATE SYSTEM ASSOCIATE HEAD ASSOCIATE

& TOOLS MANUFACTURING MANUFACTURING
MANAGEMENT

SHIFT ENGINEERS

RAW MATERIALS:

The raw materials used in the preparation of the components are namely.,

 CRCS (Cold Rolled Carbon Sheet)

 Used for Housing, Keeper Rings, Grills
(If used powder coating is done)

 Alu-Zinc
Housing, Mounting Brackets, Tone disc & Diaphragm

 Spring Steel
 Mounting Brackets, Point Plate, Point Holder
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MACHINES:

 Automatic Press
 Used for Housing alone
 Mechanical feeder Press
 Used for Point plate, Point holder, Blank, Mounting
Brackets
 Power Press
 Used for Housing, Tone disc, Screws
 Hydraulic Press
 Used for Diaphragm
 Pneumatic Press
 Used for Tone disc, Piercing Operation

PROCESSES:

HOUSING

Raw Material Hour Glass Cutting Output Housing

Re-strike

Piercing

Lettering

Trimming

HOUSING + SCR ASSEMBLY

SCR RIVETING
Raw material Output (housing+SCR)
PLANISHING

LANCING
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(Housing)

TAPPING (SUB CONTRACTORS)

Powder coating

TONE DISC

BLANKING

LETTERING
Raw Material Output
FORMING
(Tone disc)
PIERCING

POWDER COATING

THE COIL WINDING SECTION:

The processes include.,

 Point plate and point holder riveting

 Coil winding onto the spool
 Rooting and Cutting
 Cleaning

THE ASSEMBLING SECTION:

PROCESSES:

1. COIL LATCHING
 30

2. COIL LOGGING + POINT PLATE + HEAT CODING +

THERMAL BASE ASSEMBLY

3. POINT HOLDER ASSEMBLY & THERMAL BASE RIVETING+

WASHER

4. DIAPHRAGM ASSEMBLY AND TIGHTENING

5. PRE CRIMPING & FINAL CRIMPING

6. AIR GAP MEASURING & ADJUSTING

7. TERMINAL CONNECTOR BENDING & MOUNTING

BRACKET ASSEMBLY

8. POWER SUPPLY, HORN TUNING & TESTING

9. TUNING RANGE MEASURING & SEALANT DISPENSING

10. QUALITY ASSURANCE WITH 100% INSPECTION

11. STICKERING AND DESPATCH

2.2 MARKETING DEPARTMENT

Marketing is essentially about marshalling the resources of an organization so that

they meet the changing needs of customers on whom the organization depends. As a verb,
marketing is all about how an organization addresses its markets.
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Figure 2.3 : Classification of Markets

MARKET

REPLACEMENT ORIGINAL EQUIPMENT EXPORT MARKET

REPLACEMENT MARKET

It is a Secondary market that supplies accessories, spare parts, second-hand

equipment, and other goods and services used in repair and maintenance. Some
aftermarkets, such as those for automobile add-ons, parts, tires, wheels, are very large. The
aftermarket or replacement market encompasses parts for replacement, collision,
appearance and performance, including electric propulsion. The aftermarket provides a wide
variety of parts of varying qualities and prices for nearly all vehicle makes and models on the
road.

Consumers have the option of repairing their vehicles themselves (known as the do-
it-yourself segment) or can take the vehicle to a professional repair facility (known as the do-
it-for me segment).

ORIGINAL EQUIPMENT MANUFACTURER MARKET

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An original equipment manufacturer, or OEM, manufactures products or

components that are purchased by a company and retailed under the purchasing company's
brand name. OEM refers to the company that originally manufactured the product.

When referring to automotive parts, OEM designates a replacement part made by the
manufacturer of the original part.

OEM may also refer to a company that purchase, for use in its own products, a
component made by a second company.

EXPORT MARKET

Export marketing is a process of finding buyers/importers and approaches them with

the expectation of export orders with a well-planned strategic marketing process followed
and performed well to get success in International Market.

ANNUAL PROJECTION PLAN:

It is a plan for production, staffing, inventory, etc. It is usually linked to manufacturing

where the plan indicates when and how much of each product will be demanded. This plan
quantifies significant processes, parts, and other resources in order to optimize production,
 33

to identify bottlenecks, and to anticipate needs and completed goods. Since an MPS drives
much factory activity, its accuracy and viability dramatically affect profitability.

It is necessary for organizations to synchronize their operations and become more

efficient. An effective plan ultimately will:

 Give production, planning, purchasing, and management the

information to plan and control manufacturing
 Tie overall business planning and forecasting to detail operation.
 Enable marketing to make legitimate delivery commitments to
warehouses and customers
 Increase the efficiency and accuracy of a company's manufacturing

 Normally, Previous off Take+ Demand forecast= ANNUAL PLAN to monthly to

weekly and day plan will be made and as per production takes place

DESPATCH DOCUMENTATION

1. Packaging list cum delivery Chelan

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 Packing list- The exporter or his/her agent---the customs

broker or the freight forwarder---reserves the shipping space
based on the gross weight or the measurement shown in the
packing list. Customs uses the packing list as a check-list to
verify the outgoing cargo (in exporting) and the incoming cargo
(in importing). The importer uses the packing list to inventory
the incoming consignment.

 Delivery Chelan is a proforma invoice that accompanies at the

time of delivery which contains the Materials and quantity of
goods dispatched.

2. Transport invoice, Road permit, central Excise gate pass

3. Commercial invoice

 A commercial invoice is a form identifying the seller and

buyer of goods or services, identifying numbers [invoice
number] date, shipping date, mode of transport, port of entry,
delivery and payment terms, and a complete listing and
description of the goods or services sold including, quantities,
prices, discounts.

 The commercial invoice form is considered the most important

document in international trade, because merchandise is not
allowed to clear customs at the destination without one.

 That is even true if the goods are samples and have no

commercial value.
 35

 This document is usually the one that all the service providers
first look to for information about your shipment. It is important
to prepare the commercial invoice as clearly and accurately as
possible to avoid problems with your shipment.

 The Commercial Invoice is a Customs requirement, not a

transportation requirement. When someone is engaged in
international trade, Customs requires a Commercial Invoice
form.

2.3 PURCHASE DEPARTMENT

On receipt of the plan made in by the production department the purchase

department would acquire the necessary raw materials to the production process. It
comprises of the following steps.
 36

Figure 2.4: Flow of processes in the Purchase Department

BILL OF MATERIAL

VENDOR

EVALUATION

TEAM OF ENGINEERS

RISE ENQUIRY

EVALUATION

PURCHASE ORDER

PROCEDURE USED:

 ABC Analysis

o A- items are normally less in quantity but of high value

 37

o B- items somewhere between A and C

o C- items are of less value but of more quantity

 Suppliers

o 250 vendors totally supplying about 4000 components in 5 product

range.

 Rating the supplier

o Quality inspector checks the materials and confirms its compliance to

the required standards

o Codes are given to products that are accepted or rejected

o Rating is done every month and supplier will be retained or changed

as per the rated results

2.4 STORES DEPARTMENT

 IDENTIFICATION
 38

o Tags are provided to the products in the department to both the raw
materials and the finished goods. It includes.,

 BLUE TAG- waiting for inspection

 GREEN TAG- accepted

 YELLOW TAG- conditionally accepted

 RED TAG- rejected

 HANDLING MATERIALS AND EQUIPMENTS

 TROLLEYS

 PLASTIC DRUMS

 PLASTIC TRAYS

 MASTER CARTON BOX

 VERTICAL TYPE CARTON BOX

2.5 INFORMATION TECHNOLOGY

Figure 2.5: Organizational chart of Information Technology

 39

INFORMATION
TECHNOLOGY

IT1/ SAP IT2 / DSO IT3 / HW

SAP MM SAP ADMM SAP PP S/W SAP SD

PROJECTS

 Roots industries being integrated by SAP while other companies under the
roots group integrated by an in-house developed software RIMS (Roots
Integrated Management System).

RIL – SAP:

Comprises of three defined servers namely.,

 40

 Development server- Where the consultants do all customization /

configuration

 Application server- Where the consultants do all customization /

configuration

 Production / database server- Where users will do their routine

tasks.

 MODULES

 MM- Material Management

 A single material or article master record creation in SAP

typically involves multiple people entering at least 100 fields in
over 20 different screens. At most companies, this process is
manual–labor intensive and error-prone.

 The SAP Materials Management module includes the following

common uses:
 New material creation – all views including extending
materials to different plants and sales organizations.

 Article masters for retail and apparel industry solutions

 Bill of materials, including variant configuration
 Material master & BOM changes - characteristics, MRP
controller, prices, cost, components, storage location,
etc.
 Material movement & inventory tracking
 Goods receipts and material document postings
 41

 PP - Production Planning
 The Production Planning module of SAP takes care of Master
data needed like Bill Of Materials, Routings and Work Centers
and stores it in one separate component.

 Various stages of the planning system can be planned by

using components like

 Sales and Operation Planning

 Long Term Planning
 Demand Management
 Materials Requirement Planning

 SD- Sales & Distribution

 The SAP Sales & Distribution (SD) module is one of the most
important SAP modules and is the key module in the Order-to-
Cash business process.In particular, many SAP customers find
that automating data loading in the following processes leads
to large efficiencies:

 New customer master creation

 Customer master changes – credit terms,
block/unblock status, address, sales hierarchy, partner
functions
 Pricing conditions creation and changes including
customer-specific pricing
 Sales orders and credit memos creation, including
those received directly from customers, distributors,
resellers, or sales orders collected in other systems
 Changes in sales orders/quotes – changes in pricing,
delivery dates, quantities, items, location
 Contracts and rebate agreement creations
 42

 QM- Quality Management

 The SAP QM module supports tasks associated with quality

planning, quality inspection and quality control throughout an
enterprise. It sets the specifications for quality and standard
testing procedures, controls the creation of quality certificates
and manages notifications related to quality. It also stores the
quality data for raw materials, goods-in-process and finished
goods.

 The companies can use the Complaint Management for

achieving their quality goals. This process provides the
notification and analysis of non-conformities, defects, and
failures that are related to products, processes, or services.

 SAP ERP supports problem management with its very flexible

and powerful quality notification tool.

 It is possible to record quality notifications using variable

templates depending on the scenario. Notifications are a
flexible tool for recording, processing, and monitoring all
unplanned events in an organization, e.g. complaints against
vendors, customer complaints, or internal problems.

 FI / CO –Finance & Control

 Accounting teams usually have a lot of data that is either

created in Excel or is received in Excel. Manual entry of this
data is expensive and delays month-end closings. Also, in the
 43

SAP FI/CO module, some of the SAP data entry screens are
very cumbersome

 Data entry in Excel can easily be synchronized with the SAP

system, significantly improving the efficiency and productivity
of accounting and finance operations. Typical benefits are:

 Journal entries, Accounts Payables, Accounts

Receivables parking or posting, including those using
Profitability Analysis
 Posting invoices received from external vendors.
 Invoice-receipt with 3-way matching

 Reconciliation and entry of P-card statements

 Incoming payments & other bank information
 Customer invoices
 Fixed assets creation and maintenance
 Ad-hoc reporting of A/P or A/R line item data.
 Budgeting and other planning transactions

RIMS:

 An in-house developed ERP.

 Front End – ASP ( Active Server Pages)
Back End – SQL Server.

2.6 FINANCE DEPARTMENT

The finance department is the department or committee which manages the money used in
an organization.
 44

FINANCE FUNCTIONS

 Budget preparation
 Budget administration
 Cost allocation
 Accounts payable
 Payroll
 Fringe benefits
 Grants administration
 Monitoring service providers
 Technical assistance to service providers
 Contract administration
 Billing
 Property inventory
 General accounting records
 Fixed assets records
 Custody of funds
 Distribution of pass-through funds
 Cash flow
 Investments
 Debt administration
 Risk management
 Internal financial reports
 External financial reports
 Statutory reports
 Tax reports

THE BUDGET

 It is duty of finance department of company to make the budget before actual

providing money to any department. It will be helpful to fulfill each department with
minimum cost. Finance department can take the past records from respective
department. It will be useful for making better budget. Annual business plan (ABP) is
 45

made in the month of January- February in comparison with the previous year
records and annual projection plan made by the departments.

FINANCIAL MANAGEMENT

 In this function finance department gets money from capital market at very low risk
and cost. Finance department analyzes all the resources of funds and create a good
financial structure of company. In this structure, finance department analyze whether
it will decrease the overall cost of capital on Average basis or not.

MANAGEMENT OF INVESTMENTS OF COMPANY

 After making financial structure, finance department invests debenture holders and
shareholders money in best projects for getting highest return on investment. For this
finance department has to take investment decision. These investment decisions can
be taken with the help of capital budgeting and investment analysis techniques.

MANAGEMENT OF TAXES

 Management of taxes is also the function of finance or finance department. Taxes

may be direct or indirect. Finance department continue watches the amendments
and updates in tax laws and also create good corporate relation with government by
paying return of corporate tax on the time.
 46

MANAGEMENT OF FINANCIAL RISKS

 Finance department takes many measures for managing the financial risks of
company. For reducing loss of fund due to happening liquidity, solvency or financial
disaster, finance department makes a good plan and also takes the help of debt
collectors, insurance companies and other rating agencies for reducing financial risk

STATUTORY PAYMENTS

 Sales tax, Excise duty, TDS., are calculated and paid in time.

BOARD OF DIRECTORS:

 Mr. K.Ramasamy
 Mr. N.Gomathinayagam
 Mr. Kavidasan
 Mr. C.V.R.Panikar
 Mr. B.P.Rangasamy
 Mr. R.Varun Karthikeyan
 Mrs.R.Yokanayaki
 Mr.K.Saravanasundaram

EXECUTIVE CHAIRMAN & MD:

Mr.K.Ramasamy

VICE PRESIDENT-FINANCE & COMPANY SECRETARY:

Mr.K.Ravi
 47

AUDITORS:

M/s. Subramanian Vasudev & Co

Chartered Accountants, Salem.

BANKERS:

 SBI
 Citi Bank
 Punjab National Bank

REGISTERED OFFICE:

R.K.G Industrial Estste

Ganapathy, Coimbatore-641006

FACTORIES:

 High Precision Engineering Division

Ganapathy, Coimbatore – 641006

 Horn Division
Thoppampatti, Coimbatore-641017

RECORDS MAINTAINED

CASH BOOK

PETTY CASHBOOK

BILLS RECEIVABLE BOOK

PURCHASE BOOK
 48

PURCHASE RETURN BOOK

SALES BOOK

SALES RETURN BOOK

BILLS PAYABLE BOOK

PASS BOOK

PERFORMANCE OF THE COMPANY

Turnover (2008-09): Rs. 9609.18 Lakhs

2.7 ENGINEERING RESEARCH CENTRE

 The Engineering Research Centre (ERC) is involved in the continuous

improvement and enhancement of design to increase performance and reliability.
The ERC functioning under three distinct heads cater to the needs of Roots
Industries, Roots Multiclean and Roots Auto Products.
 49

 Though there is a three-pronged operational ethos, the ERC is integrated and

meshed seamlessly with one single objective: that of design research and
performance monitoring. Through extensive product engineering, the ERC cell of
ROOTS achieves the following:

 Designing and developing new products with customer focus.

 Conducting required tests to ensure product reliability.
 Initiating necessary corrective and preventive action for ensuring
peak performance
 Fine-tuning products with available components to satisfy
customer requirements. 

 The ERC consists of the best talent that includes engineering graduates, ITI
brains and design engineers. The team works with top-notch tools like

 Proe2000i2 - for solid modeling

 AutoCAD 2000 - for Drafting
 CorelDraw V 8.0 - for Graphical Applications

 THE APPLICATION ENGINEERING

o This department plays a major role in the development of new designs of

products to the desire of the Original Equipment Manufacturers
 50

o These people initially enquire the needs of the OEM and develop a prototype with
the process engineering and product engineering of the ERC.

o Then the developed product is initiated for approval from OEM. Once cleared,
pilot batch production takes place, with the successful implementation of the pilot
batch; the production team goes for the mass production.

2.8 HUMAN RESOURCE DEPARTMENT

PERSONAL CULTURE
 51

The management has been encouraging and promoting a very informal culture,
"Personal touch", sense of belonging, enabling employees to become involved and
contribute to the success of the company. The top management also conscientiously
inculcates values in the people.

WORK ENVIRONMENT

Special and conscious efforts are directed towards housekeeping of the highest
order. Renovation and modernization of office premises and office support systems are
carried out on an ongoing basis. 

TRAINING

Roots believe in systematic training for employees at all levels. As a part of the
Organizational Development efforts, training programs are being conducted in-house, for
employees at all levels. In addition, staffs are also sponsored for need based training
programs at leading Management Development Institutes.

TOTAL QUALITY MANAGEMENT

Customer Focus is not merely a buzzword but it has become an important factor of
every day work and has got internalized into the work environment. There is an equal
emphasis on internal customer focus leading to greater team efforts and better cross-
functional relationship.
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QUALITY CIRCLE MOVEMENT

To ensure worker participation and team work on the shop-floor, Roots Industries
India Limited has a very effective Quality Circle Movement in the organization. As on today
Roots Industries Limited has 3 operating Quality Circles having 24 members and some of
them have won awards at different conventions and competitions.

Through interaction with workmen in these sessions, a process of 2-way

communication has been initiated and valuable feedback has been received on worker
feelings, perception, problems and attitudes. Simultaneously management has
communicated the problems faced by them and the plans to overcome these problems.

GOOD MORNING ASSEMBLY

The management aims in operator's mental & physical fitness and it is ensured
through the GMA.The operators and shift supervisor, assemble before the I shift beginning
and do occupation of fitness exercise, discuss about the Quality Safety & Production aspects
of the previous shifts and take Quality / Safety oath.

Through interaction with workmen in these sessions, a process of 2 way

communications has been initiated and valuable feedback has been received on worker
feelings, perception, problems and attitudes. Simultaneously management has
communicated the problems faced by them and the plans to overcome these problems.

SSP have a strong people-oriented work culture that can be seen and felt across all
its member concerns. Whether they work in group or in isolation, their effort is well
appreciated and achievements well rewarded.
 53

They have a sense of belonging and they revel in an environment of openness and
trust. Cross-functional teams function as one seamless whole and foster the true spirit of
teamwork.

SSP as a learning organization systematically train its employees at all levels.

Conducted in-house, the training programmes equip them to meet new challenges head on.
Employees are encouraged to voice their feelings, ideas and opinions. There is a successful
suggestion scheme in operation and best suggestions are rewarded.

Lasting relationship will evolve only when people know that their work is valued and
that they contribute meaningfully to the growth of the organization. At SSP, people across
the group companies, through interactions at workshops and seminars, get to know each
other individually, share their common experiences and learn something about life.

CONCLUSION

The main objective of the organizational study, to understand the organization’s

functions and activities is vital for a management student.

The training at Steel Authority of India Limited was fruitful in gaining a practical hand
on experience understanding the functions of the organization. The practical exposure
provided an insight into the major accomplishments to be made in the field of business.
 54

Being honored and privileged in completing the program in the organization, the
experience would be of great part in all my future endeavors.