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ROOTS INDUSTRIES LIMITED

PETES LIANDO.J – 18MBA007

SRIRAM.B – 18MBA009
KEERTHANA.V – 18MBA017
GOBINATH.K – 18MBA018
VIJAY SAMRAJ.B – 18MBA021
SURYA.K – 18MBA024
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 INDUSTRY PROFILE 2

 The Indian auto-components industry is set to become the third largest in the world
by 2025.

 The auto-components industry accounts for 2.3 per cent of India’s Gross Domestic
Product (GDP).

 The total value of India’s automotive exports stood at US$ 13.5 billion in 2017-18 as
compared US$ 10.9 billion in the year 2016-17.

 The Foreign Direct Investment (FDI) inflows into the Indian automotive industry
during the period April 2000 – June 2018 were recorded at US$ 19.29 billion.

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 COMPANY PROFILE 3
 ROOTS Industries was established in 1970.

 The company manufactures a wide range of Electric Horns, backup alarm and
electronic horns with multi-functional capabilities for passenger vehicles, off-road
vehicles and material handling equipment.

 Roots horns find pride of place in the world’s most trusted automobile brands.

 It is the 11th largest auto horn manufacturer in the world.

 Roots cast, Polycraft and Precision Engineering were the result of initiative to
remain self-reliant and competitive.

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 PRODUCT PROFILE 4
ELECTRIC HORNS

ROOTS 70 ROOTS MINI ROOTS 75

SMARTONE
ELECTRIONIC HORNS

VIBRO MINI WINDTONE 75

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 OBJECTIVE AND VISION 5
 CORPORATE OBJECTIVE

Initiate and implement long-term growth strategies that are focused on holistic development of
products, services and organizational goals. Ensure all strategic initiatives reflect positively on
all stakeholders involved. Identify key sectors for new growth initiatives.

 VISION

Make a clear difference as a responsible corporate entity that is committed to technological,

social, ethical and environmental betterment. This is achieved through

 Sustaining a lead position as a trusted solutions provider to customers.

 Adding value in every way, from technology to quality to customer relations.

 Creating a free spirited, intellectually challenging work culture within the organization.

 Ensuring individual social responsibility plays a collective role in building impactful corporate social

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responsibility.
 CORPORATE HIERARCHY 6

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ROOTS INDUSTRIES INDIA LIMITED 7

0
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 SUPPLY CHAIN MANAGEMENT 8
 Supply chain management is a broad range of activities required to plan, control and
execute a product’s flow from acquiring raw materials and production through
distribution to the final customer.

 SCM is done in the most streamlined and cost effective way possible.

 The 6 drivers of SCM:

PRICING
AND
SOURCING FACILITIES INVENTORY INFORMATION TRANSPORTATION
MARKETIN
G

 The 3 flows of SCM :

PRODUCT FUND INFORMATION

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 SOURCING 9
 Sourcing is done based on the forecast results obtained from Marketing team and
purchasing activities are aligned with those results.

 Three types of Supplier : Manufacture, Distributor, Trader(non authorized)

 SUPPLIER SELECTION METHOD:

 Suppliers are graded by Supplier Technical Assistant Team who approve items with 82%
satisfaction with company standards.

 PR is generated which in turn will trigger a delivery schedule.

 The selected supplier will send the trail components which will used to check the quality
production .

 If a particular part has no defect for 8-10times, then that material is placed in skip plot.

 Sourcing from other countries where the materials will have a credit period of 180 days and
05/19/202 liquidity class damage of 0.5% on value of product is added to the bill.
 SOURCING 10
 Material sourced are grouped into three types like Runner, Repeater and Strangers.

 VMI (Vendor Manage Inventory) is followed in Roots Industries where vendor will
manage a stock at vendor warehouse for Roots and supply it to Roots when a
demand is needed.

 The circuit boards are sourced from Electronic Manufacture Division with lead time
of 21 months. Inventory bourn by supplier have inventory carrying cost of 2 %.

 Major raw material obtained for manufacture horns is silk , wire where copper is
sourced from local supplier by comparing the rates with LONDON metal exchange
and Mumbai daily rates.

 Eg: Lead time for diode : 21 - 17 weeks and USB charger : 7-10 days

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 KRALIJIC’S MATRIX 11
HIGH
BOOTLE
NECK ITEMS STRATEGIC
ITEMS
SHEET
METAL GOLD PINS
WORK,
COPPER
SUPPLY WIRES
RISK
NON –
CRITICAL LEVERAGE
ITEMS ITEMS
MOULDS
from CRCS SHEET
LOW POLYCRAFT
HIGH
LOW
PROFIT IMPACT
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 FACILITIES` 12
 The facilities used in Roots industries
are world class with lean tools
implemented in each stage of
production such as:
 5S

 Poka yoke

 Kanban - Andon

 Jishukan

 With these tools they are increasing the

production with zero defects.

 TOYOTA, VOLKSWAGON awarded ROOTS

industries for manufacturing products
with
05/19/202 0 PPM.
 FACILITIES 13
 Six Sigma has been attained by Roots industries

 The Six Sigma DMAIC approach is typically used to improve an existing process.
DMAIC is an acronym that stands for:
 Define the problem and desired outcome

 Measure the ability of the process

 Analyze the data and identify the root cause of variations (defects)

 Improve or modify the process so that fewer variations (defects) are produced

 Control the process. Prevent and correct variations before they result in defects

 3.4 million defects in million products

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 INVENTORY 14
 Inventory inside the factory is maintained in stores for different operations like
winding , molding, etc.,

 If demand doesn't go as per forecast and there is only limited demand for product
then online method of ordering is done. (BULL WIDTH EFFECT)

 Inventory is maintained using two methods:

 TWO BIN SYSTEM

 PULL PRODUCTION

 Inventory is filled using milk run model of supply.

 Inventory turnover ratio for Roots industries is 10 – 150.

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 INFORMATION - SAP 15
 The information is floated from supplier to the customer end using ERP portal. The
ERP used in Roots Industries is SAP(System , Applications and Products).

 Using SAP even the in-house inventories are billed separately and moved to other
step in manufacturing process.

 If inventory reaches safety stock level, the SAP itself will send PR via mail to the
supplier.

 The customer can also keep track of their product using SAP from their workplace to
know the exact delivery date.

 Make or buy decision is also made using the information like quantity of products
needed.


05/19/202 Lotus notes is also an ERP package which is used by Roots industries
 PRICING 16
 Pricing is basically done based on:
 Dollar price for international market

 Internal carrying cost

 Assembly cost

 Freight charges

 Overhead Profit(supplier)

 Margin on profit

 Overhead profit is added only if a particular product is sourced from only one
supplier who sells it at slightly higher price since that supplier is one and only
supplier who matches quality of particular product
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 TRANSPORTATION 17
 Transport is outsourced to third party logistics company like DHL for airway
transport and Jupiter for seaway transport .

 The shipment is billed based on tones of material, shipment time and sometimes
the space required to store the material.

 Transport is done based on Ex-works , FAS ,FOB , C&F and CIF basics.

 When CIF is done , the port and inward tax for the goods may be high for product
which the supplier might have reduced in the selling price.

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 CUSTOMERS OF ROOTS INDUSTRIES 18

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 PRESENT METHODS ADOPTED & 19
FACTORS
Grading by STA
 METHODS

 VENDOR MANAGED INVENTORY PR

 VENDOR RATING METHOD Trail Component

from selected
Supplier
 LEAN TOOLS

 FACTORS PO

 Sudden demand of some goods which are less than Quality Inspect and
Note
Minimum order quantity(MOQ) they cannot supply
to satisfy the need of their customers. Invoice

 During supply to the customer, goods get affected

SKIP PLOT(no
05/19/202 by perils of sea. defects 8-10 times)
 SUGGESTIONS AND PROPOSED 20
METHODS
 Decision models can be used to make decisions on supplies and product

 Increasing the inventory turnover ratio of Roots industries using analytical methods to
improve the profit of the company

 Industry 4.0 can be implemented to improve productivity utilizing all the resources.

 For Strategic Item such as Gold Pins, alternate supplier can be identified by the ROOTS
INDUSTRIES or they can start their own manufacturing unit if demand increases.

 The credit period for supplier from foreign supplier can be reduced by ROOTS INDUSTRIES.

  

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