Regional Activity
NORTHERN REGION
Visit to Daewoo Motors India : 26th May 2000
The
visit to the Daewoo factory by 30 Northern Region
members was led by Mr Deep Kapuria, Chairperson,
ACMA (NR).
Mr S G Awasthi, Chairman, Daewoo Motors India
Ltd welcomed the delegation and addressed the
gathering. Following are some points from his
address:
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ACMA /Component Manufacturers
/ OEMs shared a common objective and role
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Auto industry was aiming for
major growth which made the direction clear
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This, in fact, made the relationship
between the component manufacturers and OEMs very
critical with any case of pressure to be share by
both.
Foresees component and automobile industry emerging
stronger in five years time
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Indian operations to be stronger-
this will make the structuring and re-structuring
a common phenomenon in India
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Daewoo started in 1995 with an
initial investment of Rs.4000 crores worth of physical
assets. In 1998 the turnover was Rs 400 crores with
more than 40,000 passenger cars produced. 1999 had
a turnover of Rs.1,300 crores. The company had already
exported more than 40,000 engines and gear boxes
and 1200 models of Matiz.
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Domestic demand for Matiz was
growing. Production was 280 cars per day and the
company planned on producing 80,000 cars this year
to reach an expected turnover of Rs.3,200 crores.
Of greater importance than the turnover, the Company
felt, was Quality, Working Environment and the Systems.
| With regard to localisation,
Mr. Awasthi, stressed that more than 95% of the
Cielo production was localised and 77% in the case
of Matiz. There was a total of 160 suppliers and
more than 70% were from neighbouring states. The
local purchase, last year, was worth Rs 170 crores
and this year estimated to be about Rs 550 crores. |
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Daewoo’s expectations
from suppliers were: Lead time; Efficiency in productivity
level and performance; Input costs; Investments
in R & D and their Quality Standards.
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Their Global Sourcing Policy
was ruled by- Lowest cost, High Quality, Short-time
delivery time, High service in terms of launch support,
Constant cost reduction & Technology development
and JIT
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Daewoo’s search for New
Vendors was in the manufacture of :V belts, Speedo
cables, Gear shift cables, Censors, PVC boxes, Major
Sheet Metal Assembly, Outside Mirrors, Cigarette
Lighter.
In conclusion, Mr Awasthi said that
he wished to strengthen the existing relationship between
the two sides. Delegates were requested to send in their
feedback after visiting the plant. He sought ACMA’s
support in "Spurious Parts Control" and lastly
reminded all of the website – daewooindia.com
- opened to enable component manufacturers to directly
interact with the Company.
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