Financial Daily from THE HINDU group of publications
Friday, Nov 29, 2002
Financial Daily from THE HINDU group of publications Friday, Nov 29, 2002 |
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Industry & Economy
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Tyres ATMA chief stresses value strategy for business success Our Bureau
NEW DELHI, Nov. 28 MEDIUM-sized enterprises in the automotive supplier industry should pursue value strategies rather than merely looking at cost strategies, the Chairman of the Automotive Tyre Manufacturers' Association (ATMA), Mr Raghupati Singhania, suggested here today. Addressing the inaugural session of Asia Rub-Tech Expo 2002, he said that cost efficiencies will act more as a "hygiene factor" to ensure that the company's price value ratio does not price it out of the market. "Those companies who still concentrate on being pure cost leaders will only be operating in the field of commodities and will be forced every now and then for the last penny," he said. He said the coming days would see extensive integration of suppliers, both at the strategic as well as operational levels. "Original equipment manufacturers are increasingly looking at suppliers as partners to add value not only in their product development but also in the manufacturing processes. It has become all the more essential for suppliers to enlarge their horizon and focus on core competencies be it R&D, consumer research, marketing or e-business," he said. Citing the example of `Lear' assembling its parts directly on General Motor's conveyor belt in their `Blue Macaw Project' in the Gravatai factory in southern Brazil, the ATMA Chairman said that one could expect in the coming days to see a whole lot of sub-assemblies being supplied directly to the production lines. He also highlighted that e-commerce has already started making its presence felt as an important medium. "The future would see online connection of the suppliers' database and production lines," he said. The annual turnover of the Indian rubber industry amounts for Rs 12,000 crore. Tyre exports from the country during the current year is expected to touch at least Rs 1,200 crore.
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