TN: How has the scenario changed over the last decade?
SR: The market has changed from a Supplier’s Market to a Buyer’s Market. Earlier, any bearing manufacturer could demand a premium because supplies were limited. At that time, the customers had stringent quality requirements.

By around 1995, every manufacturer had augmented capacity, but growth in demand was not proportionate. Excess supply conditions in the market caused severe pressures on prices. Coupled with this, globalisation meant cheap imports with organised manufacturers losing the fan, pump and motor market segments to suppliers from East European countries and China. Therefore, all organised bearing manufacturers had to focus on Auto OEMs (2-Wheeler & 4-Wheeler OEMs) and their ancillary units. Again, due to excess capacities and availability, price realisation was eroded.

TN: Are companies viewing India as a production base? If yes, how will it impact competitiveness?
SR: With regard to companies viewing India as a production base, yes, Nachi is possibly viewing us as a sourcing hub for them in the future. Currently, we do not have a complete technology provider. The understanding with M/s. Nachi , Japan is for select symbols and their liability is restricted to providing the technology. If Tata Bearings becomes a manufacturing hub, then there will be better flow of technology, moreover the brand tie-up can fetch us better realisations.

TN: How has Bearings Division geared itself for the changes, both in the market and the plant?
SR: Bearings Division has increased production of TRB where the realisations are higher. The non-availability of technological tie-up does restrict our product range. Our in-house design and development facility has helped in developing many symbols and presently it is offering 105 symbols and their derivatives. On the market front, Tata Bearings had offered GP Bearings wherein it has offered grease pouches in the replacement market. This is a unique offer which helps differentiate our bearings from the spurious ones. We are also in touch with M/s. Nachi for developing new generation bearings for the auto sector.

TN: In what way has the JRD QV / TBEM process impacted the Division? What are its significant achievements?
SR: Through the JRD QV/TBEM processes we initiated the strategic planning process and deployed planned initiatives at various levels. Implementation of plans are reviewed at regular pre-set intervals.

In the last financial year, i.e., 2003-04 the Division achieved the best ever sales at 22.63 Mn. Nos, which is a 20% increase over the previous best of 18.86 M/n. Nos. in FY 2002-03. The Division logged its best ever production with 22.00 Mn. nos., an increase of 10% over 2002-03. We also recorded the best ever TRB Production at 1.90 M/n. nos., a 37% growth over the previous best of 1.39 Mn. nos. in 2002-03.

In other areas as well, achievements were significant such as an 18% increase in Labour Productivity, 18% reduction in Power Consumption/Brg, 27% drop in Working Capital and 6% in Cost/Bearing were registered by the Division.

TN: What are the important customer linked initiatives undertaken by the Division? What has been the response from the customer?
First, deployment of Customer-specific CAM, who visits the Customer at fixed intervals to determine their requirement and satisfaction levels.

Second, Consignment Agents have located in the vicinity of all major customers such that the products are delivered as per the customers requirements.

Third, Mechanic Meets are organised in different cities/towns to improve knowledge on “Usage of Bearings”; senior leaders now visit different segment of customers at fixed intervals; Area/ Regional Customer Meets are organised; a monthly ‘Customer Expectation Review Meeting’ is held to assesss and review current and future requirements; at the Annual Dealers meet the business scenario and future action plans are discussed; the concept of “Customer Champions” has been implemented; as well as segment – wise CSI trends are monitored and reviewed by senior leadership at defined intervals.

Fourth, an in-house R&D facility has been developed to simulate the testing of bearings under predetermined conditions before launching them.

Fifth, value addition activities for the customers have been taken up where our Bearing is an integral part of their application, including Joint Improvement Projects with various key customer and suppliers. Through a technical tie-up with M/s. Nachi Fujikoshi, new generation automotive bearings are being designed and manufactured for leading auto makers. For instance, the bearing for TOYOTA was the first in this series and now we are jointly working on some of the proposals for import substitution of bearings received from customers.

Last, over the years, the product portfolio has increased from 34 types to 104 types with in-house design capabilities. These activities have strengthened the Brand Image and have also led to improved customer relationship. As a result customers have rewarded us with 100 % SOS Customers’. We have also received a number of awards from them.

TN: How have TPM related activities benefitted the company and the customers?
SR:TPM has resulted in improved OEE by 32%, reduction of breakdown by 95%, decrease in defects by 62%, improved Employee Involvement, high no of Kaizens implemented –1704 Kaizens in 2003-04, reduction in Cost of Bearings – 4.3% (despite increasing Wages, 16% Increase in Power Tariffs, etc.) and improved Safety – 59% Reduction in IOW.