A sneak peek into India?s second-largest automobile manufacturer?s plant
?Do you know that Hyundai Motor India Limited (HMIL) holds the distinction of having commenced operations in a mere 17 months from ground-breaking. And within a few months of its inception, HMIL became the second-largest automobile manufacturer and the largest automobile exporter in India?a position we have held on till now,? says R Sethuraman, senior vice-president, finance & corporate affairs, HMIL, when I meet him at HMIL at Sriperumbudur near Chennai. ?The major reason is that since the time the Santro was launched in 1998, we have been producing premium products for our customers, some of which have been global launches from India,? adds Sanjay Pillai, vice-president, HR, HMIL. Set up in an area of 535 acres, within HMIL there are two manufacturing plants that produce a total of 6.4 lakh cars a year. HMIL currently has a manpower of 8,344 workers.
Recently, HMIL kicked off a restructuring drive that will see the company replacing expatriate Koreans with Indians in key decision-making roles over the next two years. Pillai tells me that, currently, close to 90% of all department heads in HMIL are Indians and the company?s aim is to take this to 100% in a couple of years. When I ask him about Hyundai?s employee engagement efforts, Pillai says, ?We are not only the largest investor in Tamil Nadu, we are also one of the biggest primary employers in the state. And our core values emphasise that the future of our organisation lies in helping our employees develop their potential by creating a corporate culture that respects talent.? He adds that not only are the employees offered subsidised transport to every part of Chennai and beyond, developmental programmes such as spoken English, computer literacy, personality development, family financial planning, etc, are also organised for them.
As he takes me to the manufacturing plant 2, which was set up in 2007, he tells me that currently nine passenger car models are being produced at HMIL. On exports, he says, ?HMIL has become Hyundai?s global export hub for compact cars. In fact, we currently export cars to more than 120 countries.? As we enter the plant, I find the automation levels are quite high, and when I ask him the reason for the same, he replies, ?Well, that?s because it is a new plant. But unlike plants in developed countries, we cannot have 100% automation levels. Primarily because every country has its own challenges, and 100% automation levels in a country such as India would mean higher costs.? When I ask him about the vendor status, Pillai tells me currently a total of 119 companies supply parts to HMIL. ?While there are 42 Korean vendors who supply engine parts, headlamp assembly, seats, body parts and air-conditioning equipment, there are 77 local vendors who supply muffler, steel wheels, battery, accelerator, alternator, etc,? Pillai says.
After we have quickly gone through the manufacturing plant, we are rejoined by R Sethuraman, who is also the trustee of Hyundai Motor India Foundation (HMIF), the philanthropic arm of HMIL. He shares with me the eco-friendly measures undertaken by HMIL and takes me to three large ponds that are full of water. He tells me that HMIL follows a zero water discharge policy?that is waste water is fully recycled. ?Not just recycling, we also harvest rain water in these ponds that have a total capacity of 2.75 lakh kilolitres,? Sethuraman says. ?And not just water, we process and send waste paint sludge to cement industries for co-processing.?
Then he takes me to a shed where a few carpenters are busy making furniture out of large blocks of wood. ?Students in the villages nearby don?t generally have benches to sit on, so we thought why not recycle the wooden boxes previously used for transporting car components and turn them into desks and benches. In fact, to date, over 27,500 sets of desks and benches have been distributed to 133 government schools in Kancheepuram district,? Sethuraman says.
On the funding available to HMIF, Sethuraman tells me that HMIL contributes R100 to HMIF for every car sold domestically. ?So, in 2012, we raised R3.9 crore.? Additionally he tells me that HMIF is actively involved with the ITIs nearby. ?We test a lot of cars as part of our R&D purpose, and once their purpose is over, we donate these to colleges and ITIs nearby so that students can have a practical learning in a laboratory environment. Until now, we have donated cars to 175 institutions,? he says.
As my brief visit to HMIL comes to an end, I see a driver training institute near the entrance of the plant. Sethuraman tells me, ?From nearby areas, we select eager recruits from among school drop-outs under 25 years of age. They are then inducted into a rigorous 45-day programme that includes classroom sessions, driving lessons and training on tracks. The result: these students graduate as skilled drivers, ready to be integrated into any organisation.?