Anand Choudhary | 15 May, 2008
Acknowledging that post-globalization, the automotive parts & components sector is facing a lot of competition, Rajann Kochar, Director of Shalimar Precision Enterprises Pvt. Ltd. in an exclusive interview to SME Times said that on the other hand, it (globalization) has also ensured that we must always provide quality goods and services to keep our competitors behind.

Excerpts of the interview...

There are several players in this sector. It what ways is Shalimar Precision Enterprises Pvt. Ltd. and its products different from its competitors? What is the USP of the products of Shalimar Precision Enterprises Pvt. Ltd.?
Rajann Kochar: We are a trading company catering to the after markets. We sell our own brands and don't copy others. We buy from manufacturers all over the country and sell to whole sellers in African and Middle Eastern Countries.

Within India, there is a cut-throat competition between automotive parts & components manufacturers. What do you do to stay one step ahead of your competitors?
Rajann Kochar: We don't sell in India. We try to give the best service at the most competitive prices to stay ahead of our competitors. Besides we can supply anything that an importer wants be it any of the auto components. Besides that, we also ensure good quality and services to stay ahead of our competitors.

For how long have you been in this business? With globalisation and easy access to cheaper automotive parts & components from other countries, how has your company dealt with this situation?
Rajann Kochar: We are into this business since 1982. Before that we were into cycle parts. Post globalization our turnover has increased from Rs 5 to 35 crore...so that says the story. Though it's true that
post-globalization, we have to face a lot of competition, but it has also ensured that we must always provide quality goods and services at reasonable prices to keep our competitors behind. So for most of the time we try to negotiate and manage.

Do you have a Research and Development (R&D) department which strives to innovate and manufacture automotive parts & components based on changing consumer trends? If yes, please elaborate on the department's working pattern?
Rajann Kochar: Yes we do have a R&D department. Though we don't manufacture goods, we receive samples from abroad and the department tries to ascertain its quality, price and other related issues. The department also gives professional advice to manufacturers who make products for us to comply with the international quality standards and the needs of the customers.

Today the automotive parts & components industry in faced by several challenges including, access to easy finance, threat from foreign players, bad infrastructure, etc. During your day-to-day operations, have you ever felt that the government/ authorities are not doing enough to ensure hassle-free business?
Rajann Kochar: In a globalized economy, the government can't do much as prices are influenced by the global scenario and it depends on how we cope with it giving the best services at a very reasonable prices. Ultimately you are exporting your products to importers and your importers should be satisfied with your products and services....that's what matters the most at the end.

Any particular area(s) where you feel authorities need to help the automotive parts & components industry?
Rajann Kochar: I am not into manufacturing sector so I won't be able to give any comment on it.

Apart from the long list of clients within the country, do you have any big clients outside India? Do you export your products? If yes, which are your key markets/ countries?
Rajann Kochar: As I have said we don't sell in our country, we just export outside mainly to African and Middle Eastern countries and our buyers are mainly small time importers from countries like Algeria, Morocco, Nigeria, Congo, Kenya, Dubai, Saudi Arabia and Iran among others.

Today all companies are restoring to e-business as a tool to explore new markets and find new customers. What's your opinion on e-business?
Rajann Kochar: It does not help us frankly. As we are into exporting auto components and that needs to be checked before being exported. Besides on the net, one or two things are bought whereas we don't sell one or two products. We generally sell hundreds of products at one go. For instance, 100 pieces of chassis. So, e-commerce does not provide much benefits to us.

What are the future plans of Shalimar Precision Enterprises Pvt. Ltd. in terms of expansion and exploring newer markets?
Rajann Kochar: Last year we participated in a fair in the US and even this year we are going participate in a fair in the US again. Besides we are trying to explore the markets in Russia, and other East European countries.

What is the future of India's Shalimar Precision Enterprises Pvt. Ltd. industry?
Rajann Kochar: The future seems to be quite bright. Our mantra is simple: good service with good quality. Along with reasonable prices to stay ahead of competitors.