Coming together as the P&P Group, these eight units which are into manufacturing auto parts and machine tooling believe that survival in these competitive times calls for a professional corporate culture. They are accomplishing this by joining hands and creating a credo of one plus one equals eleven and not two. The member units are Seinumero Engineering India Ltd, Ashish Auto Parts (P) Ltd, Samarth Auto Precision (I) Pvt Ltd, Mangesh Auto Parts Pvt Ltd, Tushar Auto Parts Pvt Ltd, Ganesh Auto Parts Pvt Ltd, Testo Engineering Works and Chaitanya Industrial Corporation and occupy a six-acre plot of industrial land developed by the units themselves.

Set up initially by two engineers, V V Pokhardar and RH Panhale, the group began its journey of combining enterprise with innovation following the entry of CL Mengale and his Seinumero Engineering India Ltd in 1991.

Mengale brought with him the rich experience of 20 years with Bharat Forge and Mahindra and Mahindra and introduced the group to the new culture and the concept behind it.

What sets the members of the P&P Group apart is that not only are all of them financially independent but they have created common facilities which are shared. They also have somemutually agreed upon guiding principles for running the business through this unusual cooperative and are sticking to them.

"It has been good so far," says Mengale, the group's representative who also looks after strategic planning for the entire group.

So common requirements such as maintenance, metallurgy security, transportation and canteen are shared by the units. "Apart from cutting costs, what this kind of an arrangement does is that it gives the units access to various facilities which an individual unit would not otherwise been able to afford or have bothered to invest in," he points out.

The units share a common metallurgical testing laboratory which is well-equipped and a standards room with callibration facilities among other things.

Computerisation is also another area where this cooperation has worked. All the eight units work in a LAN (local area netowrk) environment, have a common workstation, internet connection and electronic data exchange system and intranet.

All this ultimately goes on to improve the competitive edge of the units who also share an understanding that only quality products will help them survive in the fiercely competitive field of automotive components manufacturing. As many of them have common suppliers and clients, it is easier to service customers and offer convenience to suppliers. For instance, finished goods can go in one truck to Telco or raw materials are delivered collectively by suppliers instead of in separate visits to each unit. Sourcing of raw materials also becomes easier.

Human resources which otherwise tend to be neglected in the small sector has also got due importance. Rarely are workers and employees (altogether P&P has 250) in the small industry pampered with training programmes, transportaion and canteen. Here it is made possible by sharing costs.

Mengale explains that expenditures which are easily divisible are shared by the units. Where division is not possible, the expenses are taken care of on the basis of predetermined calculations.

Cooperation between the units has already lasted six years and together they have an annual turnover of Rs 30 crores. Bajaj Auto, Telco, Mahindra & Mahindra, Atlas Copco, Bharat Forge, Kirloskar and MICO are among the group's prized customers.

However, the group is not keen on expanding its membership. "Anyone can pick up the concept and put it to practice," suggests Mengale.