PRICOL

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PRICOL
Vision
Strive for excellence in all we do through socially and environmentally
acceptable means.

Mission
Pricol will have market leadership through customer delight. We will
be a responsible corporate citizen and share the benefits with society.
We will make our customers, employees, suppliers and shareholders
feel proud of our association and want a long-term relationship with
us.
Core Value Respect and concern for individuals   Customers,
Employees and Suppliers - Partners in the Value Chain Encourage
innovation and improvement; accept noble failures
through Continuous learning

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Quality Policy

Pricol will provide value and satisfaction to customers on products

and services. This will be achieved through: · Systematic training and
motivation of employees· Complying with customer requirements and
applicable statutory/regulatory requirements· Continually improving
the efficiency and effectiveness of the Quality Management Systems

TPM Policy

Establish an excellent Total Productive Manufacturing system with

total involvement of all employees to achieve utilization of all
resources.

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LOCATION

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GROUP COMPANY’S

PRICOL ACADEMY OF EXCELLENCE

PACE is part of three decade old renowned

PRICOL Group .PACE is involved in
Assessing & Building Individual / Basic
Competencies (Soft Skills) through
Experiential Learning & other methods.

It focus on Students (10 years & above),

Executives, Professionals & Individuals from
all walks of life.

It has a well equipped Campsite adjacent

to Tamara Resort, Perumal Kovil Pathy,
Karunya PO, Coimbatore. (40 minutes drive
from Coimbatore city)

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Pricol Technology engages in a unified

approach in product development aimed to
PRICOL TECHNOLOGY
provide maximum flexibility to customers.

The capacity to reach the vision is inherent,

being a part of the $140 million Pricol Group.

Strive to maintain mutually profitable long

lasting relationship with customers, suppliers
and partners in the value chain.

Thus ensuring the functionality, performance

and reliability of the product and process.

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The parent company had developed
Pricol Corporate Services to originally,
deal with its in house service demands.
It was now looking to move beyond
PRICOL CORPORATE
this domain into the public sector.
SERVICES

As an end-to-end solutions provider,

pricol services include styling, vehicle
interiors, Electronics & embedded,
mechanical & mechatronics, rapid
prototyping, multi-body engineering,
computational fluid dynamics crash &
NVH, tool design, plastic, die-cast.
Machined components, product life
cycle management and cad
customization .

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Xenon Technologies Ltd was created in the
XENOS TECHNOLOGY year 2002 to market and service a range of
high end automotive accessories in the
Indian market.

The plan being to bridge the wide gap

between the requirements and need of the
Indian automotive customers and
technologies available worldwide.

XENOS Auto Boutique, the one stop shop

for buying and installation of automotive
accessories. These boutiques at Chennai
and Coimbatore create a unique
environment to enable our customers’
purchase a wide range of products.
Professional installation at these locations
is the cornerstone of our service.
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Pricol Cargo, accredited IATA cargo
PRICOL CARGO agent is endeavoring to set
standards in this arena of cargo
handling. PRICOL is gaining a name
as a renowned cargo clearing and
freight forwarding agent among
leading importers and exporters.
Today, Pricol Cargo is handling
good number of shipments.

Pricol cargo is associated with

Integrated Global Logistics Network
(A part of World cargo Alliance
Family) to cater the end to End
Supply Chain Solution needs of its
Customers across the Globe.

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Organisational Structure

• Vijay Mohan Chairman and Managing director

• Suresh Jagannathan Director
• D Sarath Chandran Director
• Yoshihiko Kato Alternate Director
• R Vidhya Shankar Director
• Vikram Mohan Director
• K Murali Mohan Director

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• Vanitha Mohan Executive Director

• C R Swaminathan Director
• Mitsuhiko Masegi Director
• V Ramakrishnan Director
• M Lakshminarayan Director
• G Soundararajan Director
• K Udhaya Kumar Director

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 JOURNEY TO PRICOL...
Component Manufacturing Shop which turns out
precision components

Sheet Metal Component Manufacturing Shop

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Plastic Component Manufacturing Shop Tool Room

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Inhouse-built Special Purpose Machines
Screen Printing Shop for Component Manufacturing

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Instrument Assembly Line Transfer Line for assembling Cross-coil Movements

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Products

INSTRUMENT CLUSTER FUEL LEVEL SENSOR SECONDARY

AIR VALVE

 
OIL PUMP

VEHICLE SECURI
SYSTEM
AUTO FUEL COCKS

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SPEED SENSOR

FUEL FEED PUMP

AUTO DECOMPRESSION

CHAIN TENSIONERS
OIL LEVEL SWITCHES
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Sintered Components
Gears
Hubs
Valve Plates
Oil-less Bearings
Gear Shifter parts
Pistons

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TESTING

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QUALITY CERTIFIED PRICOL: ISO 9001

• Quality System in Pricol proposes the organization structure, responsibilities,

procedures, guidelines and resources for implementing Quality
Management

• Pricol is one of the first few auto ancillaries in India to be awarded the ISO
9001 certification. Since then on continues basis, pricol upgraded its quality
system to TS 16949 and then to ISO/TS 16949 since August 2004. In addition
pricol is also certified for ISO 14001 since July 2003.

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• Design and quality are ascertained through Quality Function Deployment
(QFD), Design of Experiments (DOE), Design FMEA, Design Review, Design
Verification and Design Validation.

• Process quality is implemented through Quality Plan, Process FMEA, Process

Control, Mistake Proofing and Process / Product Quality Audit.

• The facilities of Pricol's well-equipped Metrology Lab offers calibration

service along with Measurement System Analysis (MSA) traceable to
National / International standards.

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 KEY FACTOR(CUSTOMERS)

• MOTORCYCLE,SCOOTER,3-WHEELER
  Bajaj Auto, India   Royal Enfield, India
  Beldeyama, Turkey   Suzuki, India
  Derbi Nacional, Spain   Suzuki, Malaysia
  Egyptian Light Transport, Egypt   Suzuki, Philippines
  Hero Honda, India   Suzuki, Thailand
  Honda, India   TVS Motors, India
  Kinetic Engineering, India   Victory, USA
  Kinetic Motors, India   Yamaha, Europe
  Piaggio, Italy   Yamaha, India

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  Fiat, India
  Ford, India
  General Motors, India
  Hindustan Motors, India
  Honda Siel Cars, India
CARS, SUVs AND MUVs
  Magyar Suzuki, Hungary
  Mahindra & Mahindra, India
  Mahindra Renault, India
  Maruti Udyog, India
  Saipa, Iran
  Tata Motors, India
  Toyota Kirloskar Motors, India

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Ashok Leyland, India

Askam, Turkey TRUCK and BUSES
BMC, Turkey
Eicher Motors, India
Force Motors, India
Mahindra & Mahindra,
India
Oshkosh, USA
Pierce, USA
Swaraj Mazda, India

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COMPETITORS
Company Profit
Bosch 590.65
Exide Industries 537.09
Motherson Sumi 178.45
Amtek Auto 143.16
WABCO-TVS 78.59
Amara Raja Batt 167.03
Federal-Mogul 46.10
Amtek India 76.34
Sundaram-Clayto 12.36
Banco Products 78.41
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Value chain for Manufacturing

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CSR

CORPORATE SOCIAL OBJECTIVES

• Corporate Social Responsibility continues to assume an important role in the
activities of the Company.
• Afforestation, Water Management, Literacy and Health continue to be the
chosen areas of work by the Company and its employees. An Eco-friendly
gasifier crematorium constructed near Plant-I at Perianaickenpalayam is
maintained under Pricol Rural Development Programme (PRDP).

CONSERVATION OF ENERGY
• Company is not a power intensive industry, the Company continues its
efforts to reduce energy usage by adopting various methods of energy
saving and conservation.

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OUTLOOK
• The vehicle industry expects the growth in automobile sector to continue,
fuelled by rising disposable incomes. Global automakers are expected to
continue their investment into India, growing auto manufacturing first and
later auto engineering and R&D Services.

• The outlook for the auto ancillary industry appears healthy. The demand
from the export markets however remains weak because of the conditions
prevailing in the target markets.

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INTERNAL CONTROL SYSTEM
• The company's internal control system has been designed & implemented,
taking into account of nature of business and size of operations, to
provide for:

• Accurate recording of transactions with internal checks and prompt

reporting.

• Adherence to applicable Accounting Standards and policies.

• Compliance with applicable statutes, policies, listing requirements,

management policies and procedures

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• Effective use of resources and safeguarding of assets.

• The company, through its own Internal Audit Department, carries out
periodic audits to access the internal controls at all the processes and
functions. The observations arising out of audit are periodically reviewed
and compliances ensured.

• The summary of the Internal audit observations is submitted to the Audit

committee. The Audit Committee at their meetings regularly review the
financial, operating, internal audit & compliance reports to improve
performance. The heads of various monitoring / operating cells are present
for the Audit Committee meetings to answer queries from the Audit
Committee.

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OPPURTUNITIES,RISKS AND
CHALLENGES
• Export of automobiles has also emerged as a key component of growth.
India continues to be an attractive destination for automobile production.

• Unlike in Europe, the transition to the new emission norms has not been
smooth. Oil companies have asked for a deferment in supply of BS III fuel
and for those companies whose emission and durability of products would
be affected due to the use of lower grade of fuel, it is really a very taxing
time. Prices are on the upswing in the case of rubber, steel and fuel.

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• The auto component industry has been exposed to many risks of varying
intensity. The hardening of interest rate, tightening money supply, excise
duty hike, volatility in the price of raw materials & other inputs, currency
fluctuations, OEMs demand for price reduction, stiff competition by the
entry of Multinationals and their home country partnership, upgradation in
emission norms and Just In Time supplies are the major risks and challenges
faced by the Companies. It is forcing Companies to plan operations
effectively and produce quality components at lower costs.

• The Company through continuous monitoring, timely action and control

measures works towards controlling the above risks.

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FINANCIAL ANALYSIS
• During 2009-10, increase of sales to domestic vehicle manufacturers and
sales of fleet management products, sintered components & railway
products increased our company’s domestic sales from Rs.4,766 million to
Rs.6,338 million, a growth of 33%.

• Due to the continuation of recession in the countries where we export, our

export turnover decreased from Rs.1,375 million to Rs.1,086 million.
Overall, the total sales increased to Rs.7,424 million from Rs.6,141 million,
a growth of 21%.

• In 2009-10, due to effective cost control measures carried out by the

company, the profit before interest and depreciation has increased from
Rs.378 million to Rs.943 million, and Profit After Tax has gone up from a
loss of Rs.300 million to a profit of Rs.255 million.

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• Due to the Indian Rupee having strengthened substantially against Euro and
to certain extent against US Dollar, the export realisation will be affected.
The financial crisis in Europe, Companys largest export market is also a
worrisome factor.

• The long drawn labour strike in the year 2007 resulted in cancellation of
product development for the new models to be released in this financial
year. Therefore, the phasing of old models for which Company was
supplying products and introduction of new models where the Company will
not be supplying similar products, there will hardly be any growth in the
domestic market.

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• Therefore, the companys overall sales for 2010-11 is expected
to go up only marginally by 3%.

• But, the Company will continue its efforts to further reduce the
operational costs to improve the profits.

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SALES

Sales
800 742.4
700 606.5 614
583.4
Sales in Rs. Crore

600
449 481.7
500
370.4
400 298.4
300 253.4 246.1
Sales
200
100
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

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PROFIT

Profit
35.00 30.99 30.02
30.00 27.51
25.68
Profit in Rs. crore

25.00 21.28
20.05
20.00
13.63 12.77
15.00 11.14 Profit
10.00 6.95
5.00
0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

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Benefits derived from R & D
• New Products development and tapping
• Increasing localisation of inputs to save valuable
• New markets, Foreign exchange.
• Meeting cost effectiveness in new products.
• Registration of patents & designs.
Future plan of action
• To Work closely with customers to understand the requirements in terms
of features and reliability for a complete product solution.
• To Nurture and Promote indigenous technology
• To enhance the existing IPR base to higher levels.
• To focus on new technology products.
• To reduce time to market the product.
• To achieve price competitiveness with desired profit margin through target
pricing.

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