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India is fast becoming a major procurement centre for Yamaha Motor for its global operations, challenging the traditional procurement sources in China and Thailand.
Started in 2012, the idea was to give an opportunity to the Indian vendors a global play, as pricing in China was getting expensive and also quality was becoming a concern to the company, a top official at India Yamaha Motor (IYM) told Business Line.
“We are supplying around 125-130 parts from around 37 companies in India to Yamaha’s global facilities including Indonesia, Vietnam and Thailand. In the next 3-4 years, we plan to supply around 300-400 parts and double the number of vendors from India,” Sanjiv Paul, Group Head – Purchase Operations, IYM, told BL.
He said the Indian arm of the Japanese two-wheelers major is generating around ₹ 60 crore out of this business and in the next three years the target is to reach around ₹ 350 crore.
The components that the Indian vendors supply include turning machine parts, casting and rubber parts, which are going into some of the global scooter and motorcycle models.
“We are supplying parts for around 17 models right now including motorcycle like R15 and some of the major vendors include Advik Hi-tech, SKF India, Endurance Group, Hemson Engineers, Jayshree Polymers and Roop Polymers,” Paul said. Manufacturing such parts is also not a hassle for these vendors as many of them are already making common parts for the Indian arm, he said adding that as the demand grows, the vendors are also expanding their capacities as required.
Asked about pricing and quality as compared to China, Paul said, “Cost is not a big concern but the quality is, which we even check for a single part and do re-audits, and lately Indian vendors are making better products.”
Having said that, he also said some of the facilities are still sourcing from China like the Indonesian facility, which has a choice to procure from China as well. But, going forward, the procurement from India would grow in multiples of five-six times, Paul added.
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