Introduction:
This unit, situated at Maraimalai Nagar, near Chennai, is a joint venture between a well-established Chennai based Group and a Singapore based manufacturer of Automobile Security Systems and Accessories. The unit is 5 plus years old and contacts have been made with most of the automobile manufacturers in India, with a good degree of success. The joint venture partner is the technology provider and the venture in India manufactures products that are well established in terms of design and technology. The joint venture partner is abreast with the latest technologies in the Automobile security business and will ensure a steady flow of technology and products for the prospective buyer to exploit. This unit has already tied up or in the process of tying up with various manufacturers of Automobiles in India.
The present company consists of two divisions, the Electronics Division and the Job Work Division. The electronic division deals with the manufacture of Car Security systems and will be the focus of this brief. The other division, the job work division, will be hived off from this company prior to any sale of the company.
Marketing:
Since the inception of the company, the strategy of this company has been to focus on supplying directly to Automobile Manufacturers vis-à-vis selling in the after market or retrofit market. This direction was chosen mainly due to our strengths in dealing with Automobile manufacturers. This company was conceptualized with an equity base of Rs. 20 Lakhs and being a small company, the management decision was to neglect the After Market due to the large investments needed in setting up distribution networks and Brand building. An ideal fit for this unit will be someone with strong expertise in Marketing the product to the market and sufficient investment into distribution networks or with an existing network. In retrospect, this unit was conceived probably on a lower equity base than would have been ideal and the way to go could have been to give more resources to the after market.
From the inception of the company, gains have been made with many Automobile Manufacturers in India. The products of the company have been technologically proven to be reliable even under the microscope of the global auto majors. The product was initially approved in India by M/s. General Motors India Ltd. and M/s. Ford India Ltd.. The product was approved by General Motors for the Opel Astra Car as Factory Fitment for the Soccer Edition Model and also through their After Market network as an Opel Branded product.
The product was also chosen for fitment in special edition Ford cars at the dealer outlets. The product was also sold through the Ford dealer network as a Ford branded product. In fact, Ford was looking at our product for Global sourcing through the Ford base in the U.K. and the requisite information was sent to them. Unfortunately, both Ford India and General Motors India could not meet their projections of sales in India and as a result an accessory product like ours was relegated into the backburner.
The product has been approved by M/s. Hindustan Motors as original equipment and is being fitted by them on their SLX model cars. It is also being sold by the dealers of Hindustan Motors as a genuine Mitsubishi Lancer accessory.
We were also in discussions with M/s. Ind Auto to supply them with Central Locking Systems, but we have put it on hold till we have a clearer picture of our future plans. The product has also been demonstrated to M/s. Daewoo Motors India Limited and M/s. Honda Siel. The product is also under evaluation at M/s. Maruti Udyog Ltd. Apart from these, a few of the two wheeler manufacturers in India have been contacted to offer a Smart Key Engine Immobiliser for Two Wheelers.
Infrastructure:
The factory is currently situated in Maraimalai Nagar Industrial Estate, near Chennai. The factory consists of two distinct areas, the electronics area and the Job Work assembly area. The premises is leased and the buyer of the unit will have to transfer the activity to a location of their choice. The nature of the business being an assembly business, the requirements of space and manpower are not very high. The machinery and fixtures available with us for the electronic division is given below :
S.No. Machine Description Quantity 1. Polygram PIA 5000 Portable Manual Lead Bending Tool 2 2. Estovir MAP 860 Speedy Manual Cut and Bend Machine 1 3. Estovir FFP 915 Foam Fluxes with Pre Heater and Air Knife 1 4. Estovir DIP 905 Automatic Dip Soldering Machine 1 5. International Compressor 5 HP Air Compressor 1 6. Weller WCTP 5 Soldering Station 3 7. Green Loop GP-5806A UHF Genescope 1 8. HP 8590L RF Spectrum Analyser 1 9. Special Purpose Function Testing Board 1 10. Screwing Machines 3 11. Customade Actuator Jigs Fixtures 3 12. Pricol Arbour Presses 3 13. Dies for Plastic Casings 2 14. Special Purpose Endurance Testing Boards 2 15. Maxine 12 V DC / 10 A Regulated Power Supply 2 16. HP 973 A Multimeter 1 17. Special Purpose CLS Testing Board 1 18. Car Batteries 2 19. ELCA 12 V / 4A Battery Charger 1 20. Circuit Aids MAG ½ Magnifying Glasses 2
Technology:
One of the biggest advantages of this company would be the access to the latest trends and technologies in the Automobile Security system business. The Car Alarm System currently manufactured has been well proven in the international markets. There will also be access to the latest products like the Smart Key Immobilisers for Two and Four-Wheelers. This product from the JV partner has EU approval. This product has been demonstrated to various two wheeler and four wheeler manufacturers in India.
Stocks on Hand:
All stocks on hand (excluding obsolete inventory) and Work In Progress will have to be taken over by the buyer of the unit. All pending orders and commitments will also have to be discharged.
In a nutshell, Technology, access to latest trends and OE acceptance would probably be the biggest assets of the unit. The Small Size, lack of Brand presence and lack of distribution infrastructure would be the biggest disadvantages.