| According to the latest data, while auto component exports in 2003-04 stood at $1 billion, domestic sales were $4 billion. Total investment in the sector is estimated to touch $18 billion by 2015 from the existing $3.2 billion. |
| Cost-cutting initiatives adopted by major global car makers because of increased production costs, declining profitability, and the growing confidence of international auto and OEM (original equipment maker) players on Indian components are factors spurring further growth in the sector, said Kalyani. |
| Kalyani was speaking at a seminar on the auto component and engineering industry organised by Citigroup in Mumbai on Wednesday. He said that the domestic component makers' designing and machining competency can easily match those of the revered German firms, he said. |
| "Here this has to be considered that Indian companies have an experience of only five years for working in an high-tech environment compared with the German's experience of 25 years. Yet we are making world-class engineered products," he said. As far as engineering skills are considered, China is way behind India, he said. |
| His advised Indian companies to look global and give enough emphasis on quality engineering. |
| The experience at Bharat Forge could be utilised as a guide for improving productivity. "Dual-shoring," a concept evolved at the company's board meetings, has been instrumental in ensuring success for Bharat Forge. |
| Dual shoring is a process by which components meant for a client is manufactured from two different locations (one closer to the client's base and other in a place in India). |
| If the supply from one location is disrupted, the other location ensures a continuous supply, thereby mitigating the risk of supply disruption for a client. Kalyani felt there was a need to improve the asset and employee productivity of Indian firms. |
| "Quality of your employees ensures increased productivity," he said. |
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