INDUSTRY PROFILE

The Indian auto component industry is expected to reach a turnover worth US$ 113 billion by 2020-21 from US$ 43.4 billion in 2011-12, according to Automotive Component Manufactures' Association (ACMA) report titled, 'Auto Component Industry in India: Growing Capabilities & Strengths'. The exports from the industry are expected to grow at a compound annual growth rate (CAGR) of 17 per cent during 2012-21, the ACMA report highlighted. The small and medium enterprise (SME) dominated automotive sector is among the top three sectors attracting heavy online traffic on the site, IndiaMART.com, in terms of the number of buyers who visited from other countries, both developed and developing, as per a report by IndiaMART.com. In addition, among the Indian suppliers registered on IndiaMART.com, the auto component sector features in the top five categories, contributing 11.8 per cent to the whole segment. Product categories such as pumps and pumping equipments took the top position with 8.1 per cent buy leads posted, followed by products such as nuts and bolts, and lights and accessories in second and third position, respectively. "India is a growing market for us and we are pleased to partner with Uno Minda to bring best practices to Indian original equipment manufacturers (OEMs) and to explore and expand the markets within Asia," as per Mr S M Park, President, AMS. Market Structure The tyre production in India is anticipated to reach 191 million units by the end of 2015-16, according to RNCOS research report titled, 'Indian Tyre Industry Forecast to 2015'. Moreover, manufacturers are expected to invest huge amount into the industry over the next few years, with a major proportion of this investment directed towards the radial tyre capacity expansion. In an analysis of medium to heavy-duty Hybrid and Electric Commercial Vehicle Market in China and India, Frost and Sullivan estimated that the component revenues from India will reach US$ 212 million by 2020, which would account for 11 per cent of the global component market. The vision of Automotive Mission Plan (AMP 2006-16) aims India to emerge as the destination of choice in the world for design and manufacture of automobiles and auto components with output reaching a level of US$ 145 billion accounting for more than 10 per cent of the gross domestic product (GDP) and to provide additional employment to 25 million people by 2016. India: The Global Auto Hub The amount of cumulative foreign direct investment (FDI) inflow into the automobile industry during April 2000 to November 2012 was worth US$ 7,518 million, amounting to 4 per cent of the total FDI inflows (in terms of US$), as per data published by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce. The Indian automobile and auto components industry can be expected to surpass China's growth path by 2021, according to a research report by Espirito Santo Securities.

Supportive government policies, positive business environment, availability of reasonably priced talented workforce and stable outlook for the industry has made India a global hub for the international manufacturers to set up their facilities in the country. The auto components manufacturers are also reaping the benefits.

Auto components manufacturer, Uno Minda of N K Minda Group and AMS Corporation of Korea are entering into a technical license agreement for design, manufacture and sale of automotive lamps in India SKF has signed contracts with Audi for the delivery of SKF components. The contracts, estimated at about SEK 1 billion (US$ 150.73 billion), include the delivery of four different versions of wheel bearing units for the wheel ends and a range of bearings for the new double clutch transmission Hero Eco Ltd has tied up with Electrovaya of Canada, under which the Canadian company will work with Hero Eco to implement lithium ion-powered electric bikes for Hero's market worldwide

Key Developments and Investments Apollo Tyres has opened its global research and development (R&D) centre in Enschede, Netherlands. The centre will serve as a hub for the development and testing of car and van tyres for all brands Mahindra & Mahindra (M&M) is investing US$ 900 million over the next four years to develop three new platforms and six engines in collaboration with its South Korean subsidiary Ssangyong Motor Corporation. The company would also invest an additional Rs 5,000 crore (US$ 925.93 million) for developing products indigenously till the end of 2014 Valeo India, which has its corporate headquarters in Chennai, is setting up a plant in Sanand, Gujarat. The French multinational company (MNC) will manufacture a range of air-conditioning systems and compressors at this plant, spread over 15 acres, which is expected to be operational by mid-2013 Hindustan Motors (HM) has entered into a three-year agreement with Raaj Unocal Lubricants for manufacturing and marketing of co-branded genuine oils exclusively for HM vehicles. As per the agreement, three genuine oil grades suitable for use in all diesel, petrol and CNG-run engines of HM vehicles will be introduced. The two companies expect to manufacture and distribute 45 tonne of genuine oils worth Rs 1 crore (US$ 185,185) every quarter Government Initiatives The Government of India's (GoI) recent electric vehicle (EV) policy calls for a plan worth Rs 23,000 crore (US$ 4.26 billion), to promote the production of electric and hybrid vehicles over the next eight years, and set a sales target of 6 million units by 2020.

In a bid to improve safety features of vehicles, the Government has asked automobile manufacturers to develop a gadget which would be similar to the 'black box' installed in planes. The owner would not be able to turn the instrument off or on and the snapshot could be viewed by legal bodies, insurance companies and automakers. Moreover, Mr C P Joshi, Minister of Road Transport and Highways, Government of India, has also asked manufacturers to contemplate on the option of fixing such IT-enabled instrument to improve safety and security of the vehicles. Furthermore, the thrust given by the Government to the automotive sector in the last supplement of the Foreign Trade Policy (FTP) is truly commendable. Twenty three new items were included under the Market Linked Focus Product Scheme (MLFPS) and another five new items were introduced under the Focus Product Scheme (FPS), according to Mr Vinnie Mehta, Executive Director, ACMA. Road Ahead The India tyre industry has been witnessing stupendous growth on back of increased demand in automobiles, especially in passenger vehicles and two-wheeler segments, besides giving impetus to the automobile OEM sector and replacement market. The rapid improvement in infrastructure, huge domestic market, increasing purchasing power, established financial market etc have made India a favorable destination for investment by global majors in the auto industry, according to AMP 2006-2016. In addition, the hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focussing their efforts to develop innovative products, technologies and supply chains.

COMPANY PROFILE
Roots group is promoted by Mr. K. Ramasamy, a Master Degree holder in automobile engineering from Lincoln technical institute, USA. Roots Industries India Ltd. is a leading manufacturer of HORNS in India and the 11th largest Horn Manufacturing Company in the world. It all started with just a honk. Encouraged by the response, we kept on moving ahead. In the beginning, we did not realize that we would make such an impact. Slowly but surely, the reverberations were felt far and wide. Indian automobile market responded to our call. Soon the global market too followed suit. Roots horns, in a very short span of time, got a place of pride in millions of vehicles across the globe. Headquartered in Coimbatore - India, ROOTS has been a dominant player in the manufacture of Horns and other products like Castings and Industrial Cleaning Machines. Since its establishment in 1970, ROOTS has 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 Industries India Ltd has occupied a key position in both international and domestic market as suppliers to leading OEMs and after market. Similar to products, Roots has leading edge over competitors on strong quality system base. Now, RIL is the first Indian Company and first horn manufacturing company in the world to get ISO/TS 16949 certification based on effective implementation of QS 9000 and VDA 6.1 system requirement earlier. Roots' vision is to become a world class company manufacturing world class product, excelling in human relation. Roots' single minded pursuit of enhancing the quality of life has led to many other diversifications. Roots, today, is a multifaceted corporate entity with interests in automobile accessories, cleaning equipment, castings, precision tools, hi-tech engineering services, healthcare and education. In a dynamic world that is driven by technology, a successful presence depends on the way you mould that technology to fit popular needs. Indigenous talent, a daring attitude, courage to accept and learn new things and the simple spark of an idea. That is the genesis of ROOTS. What more could we ask for? But we did ask more. We indeed made a sound beginning but we could not rest on our laurels. The journey has to go on. There are more miles to go and more challenging territories to explore.

Product:
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 India Ltd 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.

This is in a large part possible due to the full-fledged design, development and test center with the latest CAD/CAM facilities. Its Metrology Lab too is equipped with world-class instruments and related equipment. EXPORTS: Roots Industries exports to more than 15 countries. They are: Canada, USA, Venezuela, Brazil, Argentina, Finland, Germany, Switzerland, UAE, Zimbabwe, Southafrica, Srilanka, Hong Kong, Taiwan, Japan etc VISSION: We will stand technologically ahead of others to deliver world-class innovative products useful to our customers. We will rather lose our business than our customers' satisfaction. It is our aim that the customer should get the best value for his money. Every member of our company will have decent living standards. We care deeply for our families, for our environment and our society. We promise to pay back in full measure to the society by way of selfless and unstinted service.

QUALITY POLICY: We are committed to provide world-class products and services with due concern for the environment and safety of the society. This will be achieved through total employee involvement, technology up gradation, cost reduction and continual improvement in Quality of the products and service Quality Management system Compliance to QMS requirements Quality will reflect in everything we do and think Quality in behavior Quality in governance Quality in human relation QUALITY - AN ALL PERVASIVE ENTITY A root 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 service. Roots in its journey towards Total Quality Management has reached important milestones: ISO 9001, QS 9000, VDA 6.1, ISO/TS 16949 and ISO 14001 Certification, presently 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. ENVIRONMENTAL POLICY: With due concern towards maintaining and improving the Quality of Life, Roots is committed for sustainable development by minimising pollution and conserving resources. This will be achieved through continual improvement in Environmental Awareness of all employees & associates, Legal Compliance and Objective towards Environmental Protection. PERSONAL CULTURE: 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 house keeping of the highest order. Renovation and modernization of office premises and office support systems are carried out on an on going basis. TRAINING: Roots believe in systematic training for employees at all levels. As a part of the Organizational Development efforts, training programmes are being conducted in-house, for employees at all levels. In addition, staff are also sponsored for need based training programmes 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. QUALITY CIRCLE MOVEMENT: To ensure worker participation and team work on the shop-floor, Roots Industries India Ltd has a very effective Quality Circle Movement in the organization. As on today Roots Industries India Ltd 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. 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. 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 GROUP COMPANIES:

Roots Industries India Ltd Roots Auto Products Private Limited Roots Multi clean Limited Roots Cast Private Limited Roots Precision Products Roots Metrology Laboratory Roots Poly-craft R K Nature Cure Home Satchidananda Jothi Nikethan Integral Yoga Institute Roots Industries Malaysia Sdn. Bhd. Roots Auto Products Private Limited

Electric Horns Air Horns, Switches & Controllers Cleaning Machines Aluminium & Zinc Pressure Die Cast Dies, Tools, Jigs & Fixtures Instrument Calibration, Quality System, Consultancy Plastic components Nature Cure Therapy, Yoga & Massages International School Yoga and Meditation Electric Horns

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 Roots Multiclean Ltd, the trailblazer in modern mechanized cleaning solutions in India, is proud to launch the all new RootsScrub RB800 Ride-on Scrubber. Indigenously developed versatile & robust scrubber-drier with soft touch controls and choice of battery, makes your cleaning experience a pleasure. Ideal for Shop Floors, Shopping Malls, Aiports, Railway Stations and other large area application.

Roots Cast Private Limited 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 Aluminium 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 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 Metrology Laboratory 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, RTDs, 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 Roots Polycraft (PC) was established in 1988 to manufacture precision plastic components. It is equipped with latest microprocessor injection moulding 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.