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Jan - Sep 2017 www.brakesindia.com

EDITORIAL 2 JAN-SEP 2017 Speed In this issue he past nine months have been exciting for the automotive Speed 2 Tcom-ponent industry and especially so for Brakes India. As Brake-through 3 you may notice in this publication, we have shifted the focus from Foundation 9 internal events, to a more holistic view of the industry, of Brakes India’s achievements and the achieve-ments of our people in various Brake Power 12 fields. We will try to keep all of you abreast of developments not only Acceleration 14 within Brakes India but also across the entire industry when relevant Brake Line 19 to us. Brake Dynamics 23 Over the course of the last year, we have gone through the effects of demonetization (November 2016), the switch from BS III to BS IV Brake Life 24 (April 2017) and the implementation of GST in July of 2017. Despite Brake Assist 28 the uncertainty we all felt during these changes, the Indian economy and Brakes India have navigated the track well. Though we cannot Brake Factor 29 control the market and the forces that drive supply and demand, we must continue to do what we do best—provide value to customers through technology and provide the best service possible through quality, delivery and cost-effective products. On the technology front, the past year has seen some of our best success stories with the introduction of the first ever localized EPB Chief Editor caliper in the Indian market. This is the result of hard work and Sriram Viji dedication from the entire BI team and the result of the excellent collaboration between ZF and Brakes India. Our persistence and conviction helped us succeed despite many challenges in the last Editorial Team mile. This product is manufactured in Jhagadia and is currently on Balaji Krishna V the roads in India on the Jeep Compass. On commercial vehicles, we Chellapperumal G continue to challenge ourselves on bettering our understanding of Kartik S Indian duty cycles so we can provide light weight products as well Krishnadas KVP as increased service intervals. Our challenge is to provide 5,00,000 Krishnamurthy S kms of brake functionality without any servicing, which is a big value S Shyam Sundar proposition to any fleet owner. We have achieved this for the first Susan James time using the Brakes India air disc brake coupled with the HB1200 electromagnetic retarder. On the foundry front, we have pushed our boundaries to ever more complex parts, epitomized by our new project in Naidupeta to commission a larger box Kunkel Wagner horizontal moulding line, with advanced core making machines. This line will be commissioned by April 2018, and has already secured business in integral manifolds for the turbocharger market. In the future, we will continue to highlight our improvements, innovations and achievements in this publication. Hope you like the revised design and content of Between Us. Sriram Viji Deputy Managing Director, Brakes India Pvt. Ltd. For private circulation only

BRAKE-THROUGH From the world of BI 3 JAN-SEP 2017 Launch of India’s First Electric Park Brake rakes India along with JV partner ZF group launched India’s first domestically Bproduced electric park brake (EPB) system for the Jeep Compass model that was launched in July 2017. EPB enables OEMs to eliminate the park brake lever in the cockpit, allows end customers to operate the park brake with no effort and provides automated features such as hill hold on hotel ramps, automatic deactivation when driving away and safety features when doors are open to prevent the car from rolling. Brakes India is also actively engaged with other customers as well and is exploring opportunities for the development of electric park brake in the front, which is strong value proposition for OEMs and a unique solution that only ZF can provide. ZF is the market leader worldwide with over 100 million EPB The EPB motor-on caliper units sold globally. New Business Wins ne of the key business wins for Brakes India is the actuation system for OMaruti Suzuki India Ltd (MSIL). Currently, Brakes India is in a strong position with caliper portfolio and has also won new business on drum brakes in the recent past. The challenge has been with actuation portfolio due to a strong incumbent supplier who could offer technology, value and a good price position. After multiple attempts, Brakes India achieved a breakthrough with MSIL who accounts for 48% of the India passenger vehicle market. Further, considering the future trends in the automotive landscape, it is necessary for BI to be present in both the actuation and slip control business to partner with OEMs in introducing future technologies, which is one of the reasons why this business win is key to our future growth. The challenge has Other significant business awards won are the brake system and brake hose been with actuation assembly for Tata Motors, brake hose assembly for Renault Nissan CMFA+ and portfolio due to a strong oil immersed brakes for International Tractor Ltd and Escorts. incumbent supplier who From the foundry division, Brakes India has won the exhaust manifolds integral could offer technology, with the turbine housing for Honeywell for their supplies to Volkswagen 2-litre value and a good integral manifolds in April 2018. The order volume is expected to be 500,000 pieces per annum for a period of four years. This product is to be supplied as price position machined and for the first time Brakes division will work together with foundry on such a part. Other business wins from the foundry include brackets and chassis parts for Volvo trucks, machined caliper housings and brackets for D7 and D8 versions of Land Rover and caliper housings and brackets for TRW for their supplies to global volumes of Volkswagen PC 60. The caliper housings and brackets for a part of this business are machined at Polambakkam. On the aftermarkets front, Brakes India has re-entered the market for rotors with initial sales of over 5,000 rotors a month with just a few models. We have also obtained the first export order for EZ clean.

BRAKE-THROUGH From the world of BI 4 JAN-SEP 2017 Expanding Footprints s part of the organization’s expansion plans, Brakes India is setting up a Anew plant in Jamshedpur (brakes division) and Naidupet (foundry division). The Jamshedpur facility will be a dedicated commercial vehicle factory to further consolidate our value addition in the east and north region. The proximity to the customers will enable us to be more flexible and also to develop a local supply chain that over the long run will be more cost effective. The plan is to have an integrated facility of 100,000 sqft that includes web and rim pressing, shoe manufacture, camshaft machining, phosphating and painting and final brake assembly. The bhoomi pooja for the site was held on 23rd August 2017. Mr. S. Viji during the Bhoomi Pooja at Jamshedpur The Naidupet facility is set up for high value-added castings that can withstand high temperature. The foundry division has traditionally focused on high productivity vertical moulding lines which run at approximately 150 to 250 moulds per hour, whereas this is a move towards complex geometries with complex cores and higher value addition. Turbocharger turbine housings and exhaust manifolds which operate at 900 degree celsius or greater will be one of the critical components manufactured here. The facility is also proposed to cater to austempered ductile iron (ADI) which is in demand by the commercial vehicle industry to reduce the weight of castings and approach the “near net shape”. It has also been proposed to have most of these castings machined in-house. The bhoomi pooja was performed on 28th March 2017 and the project is expected to be Mr. Ramanujam during the Bhoomi Pooja at Naidupet commissioned by the end of March 2018.

BRAKE-THROUGH From the world of BI 5 JAN-SEP 2017 TVS Technology Day Mr. Badri shares product information with DICV executives VS Technology day for Daimler India Commercial Vehicles (DICV) was held Tat DICV manufacturing facility at Oragadam on 8th August 2017. The objective of the event was to give DICV executives a platform to familiarize with TVS group companies and the wide range of technologies offered, through product displays and technical seminars. The key focus was on TVS products that suit Daimler’s model range and the benefits obtained by The key attraction of the adopting the technology to their vehicle. The event was inaugurated by product display was the Mr. Erich Nesselhauf, CEO & Managing Director – Daimler India. front knuckle module of Brakes India’s product display spanned across brake system and clutch system the truck fitted with air comprising of actuation, foundation brakes, slip control, hoses, pedal box, brake fluid and retarders. The key attraction of the product display was the disc brake assembly. front knuckle module of the truck fitted with air disc brake assembly. This was This was unveiled by unveiled by Mr. Erich Nesselhauf. Mr. Erich Nesselhauf The value proposition of the products showcased were highlighted with respect to each of DICV’s vehicle segments such as light duty trucks, medium duty trucks and heavy duty trucks. While the brake system’s benefits were showcased in terms of less torque variation, lower fade, higher efficiency, progressive feel, weight reduction, cost, low expansion, integrated solution and drag free, the clutch system highlighted benefits such as light weight, higher durability and better corrosion factor.

BRAKE-THROUGH From the world of BI 6 JAN-SEP 2017 Commenting on the event, the DICV leadership team said, “The event and product display was well-articulated to meet the specific requirements of Daimler products. We will schedule one-on-one workshops to further realise the complete potential of the technology products showcased by TVS group”. Mobile Training Centre A mobile training centre was designed and developed by Brakes India corporate technical service team to provide training to technicians and create brand loyalty towards Brakes India. This facility was inaugurated by Mr. Nalin Mehta, MD & CEO - Mahindra Trucks & Bus Division (MTBD) on 22nd March 2017. The mobile training centre is a 20 feet container equipped with training facility housed on a 25 feet double axle trailer powered by a prime mover. The training sessions focus on sharing insights on best practices of handling brake systems, importance of using genuine parts and the impact of spurious parts Mr. Nalin Mehta inaugurating the Mobile Training Centre towards brake performance. This centre also serves as an effective platform to create awareness about Brakes India products and its value proposition. The first training session en route Chennai to Pondicherry was flagged off by Mr. Badri Vijayaraghavan, ED-BD in April 2017. The training sessions are led by Mr. N Kannan, Brakes India Service Training School and field service engineers and are conducted in Tamil, Malayalam and English, which will shortly be extended to other regional languages based on market feedback.

BRAKE-THROUGH From the world of BI 7 JAN-SEP 2017 Aftermarket initiatives With the rapidly evolving aftermarket scenario, customer expectations from suppliers are changing drastically. The delivery timeframe has seen a shift from monthly to weekly to a daily or fixed date basis, primarily on replenishment mode with minimum unit quantity of one number. In such cases, building up stocks at the Integrated Warehouse (IWH) to cater to customer requirements has been a big challenge. With the support of manufacturing units, Brakes India has managed to meet 85% to 90% service level and has also launched few strategic initiatives to support this demand. • New parts warehouses have been planned to cater to distributors in terms of coverage, stocking full range of parts and improving service level, thus emphasizing the need for modern logistics management. The Combo Kit The latest addition is the Guwahati warehouse that was inaugurated in June 2017. • Manufacturing Sales Representatives (MSR) have been positioned in the market (south zone) to support sales process of distributors and increase the range of parts. This will shortly be expanded to pan India as well. • A new combo pack for Maruti Swift has been launched with two discs and one set of kit pad assembly with key benefits such as optimized design, low thermal stress, low expansion for increasing fuel efficiency, better geometry for efficient braking and lower NVH characteristics. • The TVS Apache kit pad packs contain thank you cards along with product details and service maintenance tips from August 2017. This communication not only appreciates customers for buying the product but also creates awareness about the three types of pads namely Dura, Super & Hi-per The Thank You card inserts and serves as a quick guide to mechanics for pad changing. The thank you cards are printed in Tamil, English, Hindi, Malayalam, Telugu, Kannada and Bengali. Awards won by Brakes India • Brakes India won the ‘’Best Overall Performance’’ for the Truck & Bus Division at the Mahindra Supplier Excellence Awards in Vienna 2017 • Brakes India Foundry was awarded “Outstanding Contribution in Quality and Delivery” by Volvo Eicher Commercial Vehicles • Brakes India, Padi won the runner-up in the ‘’5S Excellence Award’ 2016-17 in the Large Scale - Manufacturing Category (Southern Region) organized by CII India • Brakes India, Foundry division won the “Valued Partner for Castings’’ award from Godrej • Brakes India won the ‘’Gold Award’’ by Honda Motor India Pvt. Ltd., in the spare parts category for excellence in quality, cost & delivery

BRAKE-THROUGH From the world of BI 8 JAN-SEP 2017 • Brakes India won a “Special award” from Tata Motors for completing maximum number of parts under TML packing • Brakes India won the Safety Award–2013 from Directorate of Industrial Safety and Health, Government of Tamil Nadu in May 2017 • Brakes India Padi and Sholinghur won the Good Industrial Award for the duration of 2009–2014. This award was announced in May 2017 • Brakes India won the fourth place at the national level Industrial Relations Award for the year 2015–2016, organized by Employers Federation of Southern India during May 2017 at New Delhi. Brakes India qualified for the national level after having won the state level contest. GST implementation at Brakes India Brakes India raised a GST compliant invoice through SAP meeting all requirements on Tata Motors, within five minutes of the GST inauguration on 1st July 2017 at 00:05 hours. Brakes India was one of the first organizations to raise a B2B invoice.