For more than 30 years, the Indian family-owned Roots Group of Companies has been designing and manufacturing components for the world's biggest brands, including Bosch, Harley Davidson, GE and Philips. Why do these top brands prefer a local, Indian company? The answer is simple, says the group's founder and president, Krishnaswamy Ramasamy. "We provide quality products at a competitive price."
Founder of Roots Group of Companies, Krishnaswamy Ramasamy (left), with Masakazu Yoshimura, Managing Director of Toyota (right).
From an idea to global customers
Ramasamy founded Roots in the 1970s with the goal of improving the horn. "In India, we really like using our horns, so they have to be rugged and reliable. Which they weren't back then time-wise," says the chairman.
"Developing a horn that meets the high and strict standards of the automotive industry takes time, so in the meantime I decided to expand my business. For example, we picked up production of radiator cooling and brake booster systems."
Ramasamy - not only the founder, but also the company's chief engineer - is the kind of entrepreneur who sees opportunities and trends before the rest of the world notices them. His idea to design a better and more reliable horn might have been an unnecessary improvement to the layman. But when he launched his alternative 12 years later, all the major car companies in India lined up for his product.
And that attracted international interest. "I always wanted to work with the German company Bosch because they are known for their quality products. When we became the largest company for horns in India, we caught their eye and managed to set up a collaboration. Now 80 percent of their supplies are sourced from us," Ramasamy says.
"After Bosch, companies like Volkswagen, Skoda, Toyota and Harley Davidson followed, because we are not only a supplier of parts, but we also provide our customers with a solution to the problem they have. Our goal is to provide service and be a strategic partner at a competitive price, that combination is unique."
Sourcing in India means quality products at a competitive price
According to Ruediger Schroeder, vice president of IndiaConnected's partner, Maier and Vidorno, Roots is a perfect example of the high-quality components and service that can be found in India. "India is one of the largest producers of automobiles, pharmaceuticals and has a significant food processing sector. It also specializes in aerospace and military equipment," he explains.
"All these industries need high quality parts, which means that there are thousands of suppliers running around providing these parts that meet international standards. Whatever you are looking for, it can be had in India. You just need to have the right partner with the right experience by your side to ensure that you can take full advantage of the advanced knowledge and experience that India has to offer."
High quality for all industries from construction to medical
Roots is now active in sectors other than just the automotive industry, producing parts for customers in the construction, aerospace and medical sectors. "In 2007 we visited a lot of trade fairs, because I saw opportunities in the medical sector. But because of all the regulations and quality checks that the products have to go through, that's a tough sector to get a foothold in," says Ramasamy.
"At one of the trade shows, we did come into contact with the Swedish branch of GE healthcare, which at the time was importing components for their bioscience equipment from 48 different companies around the world. So we decided to take a chance and submit a proposal to them to develop the entire product for them. To their surprise, we were not only able to do this more cheaply than the other subcontractors, but we also immediately met their quality and delivery expectations. Roots is now GE's sole supplier and not only for GE healthcare Sweden, but also for the sites in the US and India."
Tips to get started with sourcing in India
According to Ruediger Schroeder and Deepmala Datta, Consultant Market Expansion at IndiaConnected, quality options are available to any company looking to source from India.
"But the key to successful sourcing is daring to seek the help of a local partner who can find the perfect supplier for you," says Deepmala. "India is a very large market and if you don't know what to look for, you can easily end up with the wrong option."
"You have to understand in which cluster they have the most expertise in your sector or specific product," Schroeder explains. "For international companies, with little experience in India, it's hard to get that good overview of the market and to be able to figure out where to find the manufacturing clusters of your segment. That's why a local consultant plays such an important role in this process; he or she can not only do the research for you, but also preselect the right suppliers based on key criteria such as experience and expertise."
"The mistake we see many companies make is choosing the first supplier they come across without doing due diligence or sufficient testing. Finding a high-quality supplier like Roots takes time, because you have to give them the opportunity to study and develop your product or component," says Deepmala. "That process will certainly take 6 months or more. Having a local representative, who can do follow-ups, visit the site and take over time-consuming processes, will not only speed up this process, but will also ensure that your company gets the high-quality solution it is looking for."
Curious about what the Indian manufacturing sector has to offer your company? Or would you like to have a sparring session about starting sourcing in India?
