The automotive ancillary industry in India faces challenges such as low productivity, pressure on margins, and volatility in raw material prices, but it is at an inflection point as India becomes a hub for automakers and opportunities arise. Valcon, a consulting firm, helps clients in industries such as automotive and engineering address issues in areas like product development, procurement, manufacturing, and supply chain management to improve cost, quality, and efficiency. Valcon aims to create value for clients and take them further through its experienced team and focus on execution.

1. Catapulting automotive ancillary industry
to the next level

2. The auto component industry is
at an inflection point
ABOUT VALCON The automotive ancillary industry has come a long way in terms of quality
Valcon is a consulting company with of products and technical capabilities. As India becomes the hub for
Scandinavian roots and a global
global automotive giants and Indian manufacturers alike, unprecedented
reach.
opportunities present themselves to the auto component industry.
Our local presence and insights
currently cover Denmark, Sweden,
Norway, India, China and Eastern
Europe.
We help you manage both strategic Procurement
and operational challenges to
Managing costs
growth, efficiency, innovation,
supply
globalisation and transparency.
chain
Continuous
manufacturing capability
and quality improvement
However, challenges need to be overcome to unlock the true
potential:
ƒƒ Low productivity
ƒƒ Pressure on margins
ƒƒ Raw material price volatility
ƒƒ Need for continuous technology and quality upgradation
ƒƒ Shortage of skilled manpower

3. Product development
Robust product development process ensuring new
product on time at the right cost
Challenges Imperatives CLIENT
A global renewable energy company
VALCON INTERVENTIONS
Partner in developing new
ƒƒ Significant differences in ƒƒ Improve cost estimation by
products
actual and estimated cost of using scientific techniques like
new product ZBC, ABC, etc. BENEFITS ACCRUED
ƒƒ Development time reduced to
ƒƒ High variability in process post ƒƒ Improve process controls less than 6 months
start of production (SOP) ƒƒ Implement robust project ƒƒ 3 patents – allowing the
company to take control of the
ƒƒ Delays in project delivery due management approach to solution space. Competitors are
to multiple iterations in meet delivery and left behind with the traditional
developing required proto- performance requirements heavy design solution
parts ƒƒ Establish system to study
ƒƒ Lack of understanding of export market requirements
export market requirements using techniques like voice of
for new products customer (VOC), quality func-
tion deployment (QFD), etc.
Valcon’s value proposition
ƒƒ Product cost reduction
ƒƒ Product and technology planning
ƒƒ Manufacturing and process technology
ƒƒ Reduction in go to market time
ƒƒ Increase productivity
ƒƒ Innovation

4. Procurement
Achieving highest value for sourced products and
services at lowest prices
CLIENT Challenges Imperatives
An engineering major faced with
high procurement costs
VALCON INTERVENTIONS ƒƒ Non standardised procurement ƒƒ Creating standard
Execution of procurement
practices procurement document and
transformation program
ƒƒ Multiple suppliers for indirect sourcing strategy
BENEFITS ACCRUED
items and services ƒƒ Supplier rationalisation
ƒƒ Cost savings of INR 650
Million ƒƒ High procurement costs of ƒƒ Identification of localisation
ƒƒ Streamlined 80 processes imported components/raw opportunities
ƒƒ Improved visibility of procure-
ment spend across categories material/technology ƒƒ Alternate source development,
ƒƒ Low bargaining power with global sourcing
bigger suppliers ƒƒ Analysis of spend, setting up
ƒƒ Rising share of procurement category management
costs in COGS
Valcon’s value proposition
ƒƒ Cost savings
ƒƒ Performance measurement
ƒƒ Risk management
ƒƒ Supplier development
ƒƒ Setting up international procurement offices

5. Manufacturing
Creating a flexible, efficient production system that
delivers highest quality at lowest cost
Challenges Imperatives CLIENT
Tier-one component supplier for the
world’s largest motorcycle
manufacturer facing capacity and
ƒƒ Under-utilisation of plant ƒƒ Implementing operational quality issue
capacity due to poor asset excellence program to improve VALCON INTERVENTIONS
performance OEE and throughput Implementation of operational
excellence program
ƒƒ Cost leakages due to high ƒƒ Focus on supplier quality
rework/quality rejections improvement and achieving BENEFITS ACCRUED
superior process control ƒƒ Overall throughput increased
ƒƒ Rising conversion costs by 10-20%
ƒƒ Excess inventory affecting ƒƒ Improving flexibility in ƒƒ Increased up-time by 20-30%
production ƒƒ In-process rejections reduced
turnover rate and space
from 2.4% to 0.06% of net
utilisation ƒƒ Reducing inventory by sales
ƒƒ Demand fluctuations affecting improving flow of material on
production scheduling shop floor
ƒƒ High plant wastages ƒƒ Focus on cost reductions by
improving process yield
Valcon’s value proposition
ƒƒ Operational excellence
ƒƒ Cost reduction
ƒƒ Quality improvement
ƒƒ Throughput and capacity enhancement
ƒƒ Lean manufacturing

6. Supply chain
Developing an agile supply chain to deliver the right
product at the right time with maximum cost
efficiency
CLIENT Challenges Imperatives
World’s leading heavy machinery
manufacturer facing challenges in
stabilising supplier operations
ƒƒ Inconsistent delivery ƒƒ Implementing integrated
VALCON INTERVENTIONS
Implementation of supplier performance supply chain planning system
development program involving ƒƒ Volatility in demand affecting ƒƒ Improving forecasting and
ƒƒ PPAP activities
responsiveness demand planning
ƒƒ Capacity and production
planning ƒƒ Margin erosion due to rising ƒƒ Implementing suitable
ƒƒ Material planning and supply chain and distribution inventory management system
coordination
ƒƒ Delivery planning
costs in supply chain
ƒƒ Poor delivery and quality ƒƒ Developing supply chain
BENEFITS ACCRUED
ƒƒ PPAP activities completed
performance of suppliers performance scorecard
within record 70 days ƒƒ Ineffective supply chain
ƒƒ RCCP, WIP planning modules
performance metrics
implemented
ƒƒ Cost reductions by migration
from air to sea freight
Valcon’s value proposition
ƒƒ Inventory optimisation
ƒƒ Inbound and outbound logistics optimisation
ƒƒ Sales and operations planning
ƒƒ Supply chain process planning

7. Valcon = Value Consulting
Our offerings come with a promise of taking our
clients further and leave lasting footprints
Our areas of competence ƒƒ Production
ƒƒ Business strategy execution ƒƒ Logistics OUR CLIENTS
We have worked with customers in
ƒƒ Marketing and sales ƒƒ Procurement India across pharma, auto and
ƒƒ After sales service ƒƒ Research and development engineering, EPC and FMCG sectors
with prestigious companies like
ƒƒ Saint Gobain
ƒƒ FLSmidth
OUR TEAM ƒƒ Castrol
You will always be assisted by a team of highly skilled and experienced management ƒƒ Biocon
consultants – as well as seasoned subject matter experts. Every one of them is ƒƒ Novozymes
thoroughly competent within their area; a competence built through impressive
ƒƒ Chandra Pearls
careers on the other side of the desk – and in the field.
ƒƒ Rangsons Electronics
Our consultants have previous working experience in Ford, Toyota, Suzuki, Ashok
ƒƒ Caterpillar
Leyland, Volvo, Caterpillar, Nokia, Saint Gobain, Escorts Hospital, Motorola, Bajaj,
ƒƒ Hero Group
McKinsey, PwC, Wipro, ISRO, Dalmia, Asian Paints, Castrol, Coca Cola, and
Schlumberger. ƒƒ Murugappa Group
ƒƒ Uniparts
OUR PHILOSOPHY
Value Consulting means that creating value is the starting point for our efforts. The
values that we create are traceable throughout our client companies. We believe in
professionalism as foundation of all our efforts .
Valcon is action – oriented. We will not only tell you what needs to be done- but also
how. And if necessary we can do it for you as well.
In short: Valcon will take you further.

8. Connect with us
Our offerings come with a promise of taking our cli-
ents further and leave lasting footprints
Krishnan Naganathan
CEO
krn@valcon.in
+91-97 9103 3967 & +91-44-4210 2121
Sandeep Dahiya
Associate Director
sada@valcon.in
+91 9008 366300
Valcon Management Consultants Pvt. Ltd
No. 608A, 6th Floor, Spencer Plaza, 768/769, Annasalai, Chennai,
India-600 002
Anirban Mazumdar
Associate Director
anma@valcon.in
+91-98 104 76116
Valcon Management Consultants Pvt. Ltd
001, U & I Corporate Center, Plot 47, Sector 32, Gurgaon,
India-122 001
www.valcon.in