Interactive Seminar on Bicycle and its Components Standardization

Presentation by G Ramprasad, President, All India Cycle Manufacturers Association LUDHIANA, March 21, 2007

India the transformation

India has struggled financially since independence, experiencing slow economic growth and economic setbacks and now the country has been gradually transforming its economic base from agriculture to industrial and commercial.
- At independence in 1947 India was desperately poor Textile industry as its only major industrial sector. - Economic policy after independence Central planning, with the government setting goals for and closely regulating private industry, Self-sufficiency to foster domestic industry and reduce dependence on foreign trade.

In the late 1970s the government began to reduce state control of the economy, making slow progress

-1991 India Economic crisis and Reformation

- In mid 90s expansion of middle class and their spending power increasing consumer goods from soap to luxury cars has expanded rapidly.

And today India is providing our services in a vast and wide-ranging spectrum of disciplines

Agriculture
Education Engineering

Communications
Transportation Information Technology Banking & Finance Management and a host of others.

Market Advantage

-Fast paced urbanisation to rise from 28% to 40% by 2020.

-Upward migration of household income levels.

-Middle class expanding by 30-40 million every year. -Growing working population.

INDIAS EXPORTS OF BICYCLES & BICYCLES PARTS & COMPONENTS DURING THE PERIOD 2001-02 TO 2004-05
(Rs. crore) Item 2001-02 2002-03 2003-04 2004-05 % change in 200405 over 200304 (-)16.40

Bicycles

162.08 (18.27)

137.46 (16.96)

201.36 (24.67)

168.33 (22.73)

Bicycle parts & components TOTAL

725.02 (81.73)

672.95 (83.04)

615.01 (75.33)

572.12 (77.27)

(-)6.97

887.10 (100.00)

810.41 (100.00)

816.37 (100.00)

740.45 (100.00)

(-)9.30

Note: Figures within brackets indicate percentage shares of the total.

Source: United Nations, Yearbook of International Trade Statistics 2003, New York.

India Vs Global In Bicycles

Aspects

Indian scenario

Global scenario

Material

Traditional materials. Commercial plastic ( Polypropylene, Polyethylene) is used

Aluminium alloys, Neobium alloys, Carbon fibre, Titanium, Gel. Engineering plastic ( Poly carbonate, ABS,) is used Comparable with automobiles

Finish

Zinc plating, Ni- Cr plating, Powder coating, Painting, ED coating Mostly man dependent Price consciousness Conventional Transportation , Load carrying Negligible

Process Market Technology Product R&D Government support

Semi-automatic / Automatic Quality consciousness CNC, Laser, Plasma in line with automobiles Health, Fun, Sports, Recreation Very high Fully supported

Almost nil

Indian scenario

Single speed for 20 wheel size. Gears have not been offered to kids. Gears

Geared for the young male rider, 16" wheels for kids 3 and up.

Global scenario Kids treated

as mature audience and considered to be in par with the adults. Geared bicycles with minimalistic graphics. Banana saddle with back rest in 20 wheel size bicycles. Sleek saddles in kids bikes

Steel metal mudguard

Cantilevered mudguards

Ride along with parents! Geared for the young male rider, 16" wheels for kids 3 and up.

Indian scenario

Mild steel frames

Carbon fibre frame construction Bucket saddle for babies, fitted onto the mothers bicycle.

Global scenario Frame

construction and materials have evolved to a great extent monocoque frame construction, alloy frames etc. Pedals have also evolved with provision of toe clips.

MIG welding on frames

Monocoque frame construction

Monocoque frame construction

Black pedals.

Toe clip pedals

Better roads lead to design of bicycles without mudguards.

Indian scenario

Global scenario

Steel- Hot forged/Pressed Plastic Moulded cranks

Steel- Cold forged/Pressed Plastic Moulded cranks Aluminium Moulded, CNC machined

Indian scenario

Global scenario

Steel- Welded Finish Powder coated, Ni-Cr plated, Painted

Steel- Welded Aluminium- Die casted, Forged Finish Powder coated,Anodised, Titanium,Painted

Indian scenario

Global scenario

Types Caliper , Rod brakes Finish Ni-Cr plated, Zinc plated, Powder coated,Painted Steel - Pressed

Types V brakes, Disc, Caliper, Band Finish Ni-Cr plated, Powder coated,Anodised Steel Pressed, CNC machined Aluminium Die casted

Indian scenario

Global scenario

Types Wide Barrel , Thin Barrel, Diabolo Finish Ni-Cr plated Steel Spinned & Pressed

Types Wide Flange, Thin Barrel Finish Anodised Aluminium CNC Machined

Indian scenario

Global scenario

Steel- Welded Finish Powder coated, Ni-Cr plated, Painted

Steel- Welded Carbon Fibre - Forming Aluminium- Forged Finish Powder coated,Anodised, Titanium,Painted

Indian scenario

Global scenario

Steel- Welded Finish Powder coated, Ni-Cr plated, Painted

Steel- Welded Aluminium- Casted Finish Powder coated, Anodised, Painted

Indian scenario

Global scenario

Plastic- Commercial grade Finish Simple textured, Fins, treads, Single colour, hard

Plastic- Engineering grade Finish Artistic textured, Fins, treads, Multi colour, soft

Indian scenario

Global scenario

Reverse engineered Rubber based with cotton/ nylon cord

R&D based Rubber based with kelvar etc

Indian scenario

Global scenario

Steel- Rolled & Weled Finish Ni-Cr plated

Aluminium- Drawn & Rolled Carbon fibre - formed Finish Anodised,Powder coated

Indian scenario

Global scenario

Plastic- Moulded Rubber - Moulded steel Pressed Finish Black, coloured, Ni-Cr plated

Aluminium Die casted Finish Coloured, Anodised

Indian scenario

Global scenario

Finish Simple textured Foam - PU foam or Thermorex, Hard

Finish Artistic textured with multi colours Foam Gel, Air filled

Indian Bicycle industry Vs Indian Automobile industry

Aspects

Indian Bicycle industry

Indian Automobile industry

Technology Working Environment

Traditional ( Brazing, CO2 welding..) On par with global giants Poor housekeeping, Bad ergonomics Excellent housekeeping, Good ergonomics Manual oriented, Skill based Semi automatic, automatic, robotic, process based In PPM Quality consciousness Demanded by vendor

Process

Rejections Product R&D

In percentage Price consciousness Not driven by customers

Indian cycle industry

Indian Automobile industry

Manual based

Process based

Indian cycle industry

Indian Automobile industry

Bad housekeeping

Good House keeping

Indian cycle industry

Indian Automobile industry

Bad working ergonomics

Good working ergonomics

Other Category transformation

1960 ICICI - Established to finance large industrial projects 1990s - started normal banking operations - Taking deposits, Credit cards, Car loans etc. Due to successful experiment merged into ICICI bank. 1999- The first Indian company and the first bank from non-Japan Asia to list on the NYSE. Now its India's largest private sector bank and second largest overall ICICI Bank now has the largest market share among all banks in Retail or consumer. largest issuer of credit cards in India shows changing consumers trend in India The first bank to offer a wide network of ATM's and had the largest network of 2400 ATM's till 2005. Provides unique experience to customers by extending facilities like Tele-Banking , Internet banking, Mobile banking etc. The bank is expanding in overseas markets - operations in the UK, Hong Kong, Singapore, Canada, Dubai and Shanghai Acquiring Investitsionno-Kreditny Bank (IKB), in Russia recently and also It has tie-ups with major banks in the US and China.

Founded in 1981 and got the first client in 1983 Infosys became the pioneer in IT sector of India and in 1999 Infosys attained a SEI-CMM Level 5 ranking and became the first India company to be listed on NASDAQ. Providing services to national and international customers Continuous evolving product portfolio: Aerospace and Automobile (AnA) Banking & Capital Markets (BCM) Communication Service Providers (CSP) Resources, Energy & Utilities (REU) Hi Tech & Discrete Manufacturing (HTDM) Insurance, Healthcare & Life Sciences (IHL) Media and Entertainment Product Lifecycle and Engineering Solutions (PLES) Retail, Distribution & CPG (RETL) Transportation & Services (TnS) Independent Validation Solutions (IVS) IT Infrastructure Management Services (IMS). Real Estate Life science Collaboration with foreign companies to Develop knowledge base and Develop technologies.

Commercial Vehicles, Intermediate Commercial Vehicles, Light Commercial Vehicles, Small Commercial Vehicles, Utility Vehicles..Also they identified new customers- The car market. Car segment set to grow by 8-9% annually Tata Motors has sold 555,065 vehicles (including exports) in calendar year 2006 a growth of 30 per cent over 425,901 units sold in calendar 2005. Diverse product portfolio- From Indica to Safari. Indiva in UK. Luxury to necessity- Offering new features to the customers like Power steering, Power doors, AC, Better mileage (MPFIs), Digital Odometer, ABS, Crumple zone, Airbags, Rear view camera. Affordance for all Rs. 1 Lakh car. Dash board Indica

Interior Indiva

The two-wheeler segment will clock 11.5% rise by 2007 Overseas market would present huge opportunities for the two-wheeler makers Bajaj Pulsar- The largest selling motorcycle in Higher category in India, a success in Africa and Asia. Eat your own brand before market rejects it- Bajaj Pulsar- Bajaj Pulsar DTSi- Baja Pulsar DTSI + Driving low cost and continuous innovations- Providing something EXTRA to evolve the market and customers. 200 cc, 180 cc, 150 cc New features to users like aesthetic upliftment, digital display, Gas charged shox, LED lights, Petrol tank flaps, Tubeless tyres, Split seat etc. Equal emphasis on all products- Bajaj Mopeds come with DTSi Technology, Exhaust Tech., Ride Control etc. Eg: Bajaj Wave, a scooter for girls. Oil cooler Digital console

Split seat

The way forward

From industry: Continuous Improvement and development.

OUT OF BOX thinking.

Educating Customers and then offering services. Low cost alternatives from the same house- Wide product range. Inter-net working for product development. Understand consumer and cultural preferences. From BIS: Aligning IS in line with global standards Bringing out new standards to meet changing requirements (like e-bike etc)