ARaymond Eyes India for Auto Fastener Growth

August 18

00:00 2015

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FEATURE

MEDIA SPOTLIGHT – ARaymond Fasteners India, the local arm of the French supplier of fastener solutions to the automotive industry ARaymond Group, is eyeing a year-on-year growth of 40 percent for the next three-four years, Autocar Professional reported.

ARaymond has a manufacturing setup in Chakan – near Pune –, India. The ARaymond Fasteners India managing director, Manish Padharia, told Autocar Professional that “it is tailor-made for Indian requirements and its current production capacity will suffice till 2018 considering the incoming demand for its products.”

“In terms of current available production capacity of the machines installed, we are utilizing close to 60 to 65% of the total production capacity,” he told reporter Amit Panday. The plant, built on two acres of the company-owned land of 7.5 acres, has space for expansion.

Three-quarters of ARaymond’s India’s sales are for passenger car OEMs. Commercial vehicles total another 10% and two-wheelers 15%.

ARaymond calculates there are an average of EUR 50 of fasteners in cars – or US$54 or India Rs 3,822.

“By 2018, we want to increase the value of fasteners per car,” Padharia told Autocar Professional. “We want to capture the value proposition as much as we can,” added Padharia.

ARaymond’s first Indian project was the Tata Nano in 2007 and in 2008 opened its first two-moulding machine facility.

“At each customer presentation, we proudly say that we are present in all the cars – from Tata Nano to Maserati,” ARaymond Network vice president Jean-Yves Renoux told Autocrat Professional. “The Nano is an extremely well-designed car and has a lot of scope in the market.”

Current ARaymond customers in India include Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Bajaj Auto, Royal Enfield and Hero MotoCorp.

Padharia explained that ARaymond produces non-threaded “clipping” fasteners.

“There are two types of fasteners – threaded (conventional) and non-threaded fasteners. We make non-threaded fasteners, which are clipping fasteners. These are a completely different commodity. We try to replace the heavy fasteners, which are the nuts, bolts and screws. So threaded fasteners can be replaced by the clipping fasteners by removing the many conventional fastener components. Clipping fasteners can be used without tools and that can save time and costs along the assembly line. For example, on a shirt, you can use a button or a hook or a clip or even a tape.”

Acknowledging that clipping fasteners are more expensive and “cost stands as one major concern while drawing up viable solutions for the low-cost markets. Cost is a universal concern,” Renoux told Autocar Professional. “This is a booming low-cost market. Our customers expect very low pricing and stay competitive.”

Padharia said ARaymond can bring a number of cost effective solutions to the table when it is involved early in a project.

“I think when we are involved in a project from the very initial stages; we have the capabilities of bringing many cost- specific advantages with our customised solutions.,” Padharia told Autocar Professional. “While in other markets such as North America and Europe, the fastener companies are involved with the OEMs from the initial stages of project developments, in India this practice is now catching up. In those markets, we work as complete partners to the OEMs.”

“The government’s encouragement for manufacturing here is a very good step,” Renoux said. “It complements our growth plans. I come here two-three times every year and I can see the change.”

“Our organization has a very collaborative approach,” Renoux explained. “So we meet every quarter. All the decisions are made by this executive committee and hence India is a part of the decision making for the worldwide operations.”

Reno added that “to support the market growth in the long run, we have to expand our operations in India, extend our footprints here and hire more people. We are also thinking about another manufacturing footprint in India.”

Padharia said ARaymond has plans to increase employment from 120 people to 250 by 2018.

Editor’s Note: Articles in MEDIA SPOTLIGHT are excerpts from publications or broadcasts which show the industry what the public is reading or hearing about fasteners and fastener companies.

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