26 | AutoPartsAsia | AUGUST 2017then systematically move outside. It
will be the first overseas venture for
LIS; it will be an opportunity. Also,
if any component manufacturer
anywhere in the world wants to enter
the Indian market, we could become
a partner. If I consider the next two
to three years that is an option. We
can also trade multi-brand parts for
similar items abroad; for example,
two-wheeler items in the Indonesian
market. Basically we would cover
the MENA region but that is more
visionary. The immediate need is
to have multi-brand tractor and
two-wheeler service, geographical
expansion in SAARC and in-depth
Indian market distribution; these are
the three focus areas.
Q: Digitalisation is happening
across supplier’s supplier to
customer’s customer. What is your
take on this?A: It’s all pervasive, covering every
aspect of the organisation. LIS is very
strongly into the internet and digital
world. We have developed an App
that goes right up to the salesman;
we also have an HR portal and App
for our own people; digital India is
a reality. Whether it will affect in the
form of e-commerce is too early to
say, we don’t know. We have our own
portals, people do order, and there is
traffic. We are also present in some of
the e-commerce sites but traffic there
is very little.Q: Would you get into online sales?
For example, DIY market is very
nascent in India, but it’s picking up.
Would LIS encourage that?
A: These are the emerging channels
of distribution so we are certainly
present there. We are expandingour product range in some of the
e-commerce sites; we also have our
own site where dealers can use the
portal to place orders. Regarding
IoT I’m not sure how quickly it
will become relevant in the Indian
Automotive Industry – the many
concepts that include driverless cars
and artificial intelligence (AI).
Q: It may not go to that extent but
ADAS to some degree will come, as
also connected vehicles, not fully
autonomous but up to level-3.
A: With Smart Cars, yes; Smart
Cars that give the driver all kinds of
data about preventive maintenance
and vehicle efficiency, maybe from
level-2-to-4. But fully autonomous
vehicles with finger touch controls,
recognition opening systems, Artificial
Intelligence, etc may not come in the
next three years. Smart solutions are
just an extension of digitalisation,
that’s how I see it.
Q: How are these emerging
technologies enabling LIS in
enhancing the supply chain to
reduce inventory?A: This is all permissive; it permeates
across an organisation covering
HR, finance, payment terms, order
quantity etc. It’s a question of
how quickly we can adapt to new
technologies. For example, with
WhatsApp I am personally in touch
with over 200 employees, which
two years ago would have been
unthinkable. So sitting here, across
the length and breadth of the country
I am connected; I can check in
wherever I am. It’s like big brother
keeping tab on all employees. It’s
a remarkable, powerful tool if you
are going to be a CEO. You canactually loop into select customers
and mechanics; complaints come to
you immediately as also good news.
The combination of Apps, social
media and LinkedIn really help in the
changes you are managing, which
is what makes the leadership of any
organisation. In that context in IoT ,
I think we will be one step behind; it
will take a few more years to mature.
Q: Lastly, your thoughts on
remanufacturing?
A: Remanufacturing (reman) in India
is happening at the sites as labour
rates are very low. The repair has
become reman. As long as labour
rates are low, reman in itself cannot
happen. Or the environment norms
should be so tough that even for an
old vehicle a reman part is a must; we
are nowhere near that.
Q: With BS-VI coming in about three
years, do you see possibilities
for reman (re-manufacturing) to
happen?A: With higher technology coming in,
things will move towards reman but it
will only be about five to ten percent
of the car. It should be a good start.
Replacing of products will happen,
like batteries and wiper blades, but
remanufacturing of the same remains
a question mark. For example, a
reman common rail injector does
exist but it’s less than 20 percent of
the business, though it is a highly
specialised part.
Q: Your short-term and long-term
plans?
A: I think we are in for exciting times.
LIS is in the midst of a major change,
in line with the change in the market,
as we see it.Tractor serviceAFTERMARKET