CAPARO INDIA

Caparo, founded in 1968 by Indian born British Industrialist, Lord Paul of Marylebone, is a
fast growing UK based group with a 1bn Euro turnover. With business interests
predominantly in the manufacture of steel, automotive and general engineering products, the
group has a grown as a global entity. Caparo group is now a collection of over 40 companies
operating from over 60 sites worldwide.

Caparo India, the Indian business arm of Caparo Group, began its operations in 1994, as a
joint venture with India’s largest car manufacturer— Maruti Udyog. Today, through its two
strategic business entities, Caparo Engineering India Pvt. Ltd. and Caparo Maruti Ltd, the
group offers end-to-end solutions in designing, developing and
manufacturing automotive systems, assemblies, advanced composites, modules and
components to Indian Automotive OEMs and Engineering Industry.

Caparo India leverages its exhaustive capabilities in metal Stamping, Fastening, Tubing,
Forging and Aluminium Foundry businesses, coupled with its state-of-the-art Tool Room and
R&D Centre, to service top-notch clients such as GM, Ford, Maruti, Honda, Tata Motors and
JCB. The company’s ability to offer complete lifecycle solutions backed by a global support
system, technological superiority and customer orientation, make it a force to reckon with in
its areas of expertise.

"Caparo India currently employs 5000 direct and indirect employees across 25 world-class
functional and upcoming facilities.

Caparo Group, a UK based diversified conglomerate, is a world-leader in the manufacture

and supply of sophisticated steel and engineering products. Headquartered in London,
Caparo’s global operations are spread across over 60 sites in the UK, India, Spain, North
America, Canada and Dubai and employ more than 6000 associates worldwide.

Its exhaustive product portfolio comprises of steel tubes, aluminium die-castings, sheet
metal pressings, steel pressings, steel bars and wires, auto fasteners, forgings, hand tools
and engineering products custom-made for the world’s leading automakers and engineering
companies. Additionally, the Group is also involved in a wide range of activities
encompassing materials testing services, hotels, film distribution and private equity
investment.
CAPARO’S VALUE PREPOSITION
Caparo is amongst the fastest growing auto component companies in India. It is well-
equipped to become one of the top 3 Tier I vendors in the country. A relatively late entrant to
the domestic market, Caparo has made rapid progress in setting up world-class facilities and
attaining the preferred vendor status, making it a strong contender for the leadership position
in Indian auto component industry.

CAPARO – Differentiating Factors

Scale of operations

Caparo has set up 19 plants across various geographies in India. This is amongst the
highest number of plants across all Tier I vendors in India. The Group has grown to this
level from 3 plants in 2003.

The Group currently has a land base of over 500 acres, strategically located across
Chennai, NCR (Gurgaon, Noida and adjoining areas), Indore and Pune. A large part of
this land base is still unutilised, making it easier for Caparo to put its expansion plans into
effect.

Caparo can profitably scale up to fill these capacities and yield more than INR 30bn of
revenues by 2010. This would make Caparo India one of the largest Tier I vendors.

Investment in people and processes

The Caparo Group was founded by Lord Swraj Paul, a first generation entrepreneur, who
combined strong ethics, astute business acumen and hard work to create a vast
business empire in less than 4 decades. The same business philosophy and ethics have
been extended by his son Angad Paul in developing the India business.

Caparo India is run by an independent and professional set of managers drawn from
premier auto component companies in India. Unlike normal trade practices, this senior
team has been put in place much in advance of the actual com mencement of production
at some of the plants

Caparo has also invested in setting up a very robust and effective management
information system (MIS), reflective of the professional nature of management and the
strong corporate governance in place.

Quality of manufacturing facilities

Caparo, being a relatively late entrant to the automotive industry in India, has developed
its key infrastructure over the last 2- 3 years. However, this has given Caparo the ability
to set up new facilities and employ ‘Best Practices’ in terms of manufacturing equipment
and processes. This is a key differentiator over competitors, who still rely on facilities and
processes that were set up in a very different industry scenario.

The strong focus on manufacturing facilities and processes has also resulted in Caparo
having the lowest rejection rates in the country. For the last 6 months, Caparo has been
the #1 of 101 suppliers to Honda Siel, a distinction it has earned competing with
Japanese vendors of Honda cars in India.
Diversified products and customers

Caparo has the unique distinction of being the only Indian automotive vendors with
product capabilities ranging from metal pressing to forging, aluminium castings, tubing
and fasteners.

Caparo is an approved vendor to practically all major OEMs across the passenger car,
commercial vehicle and two-wheeler segments in the country – another distinction
available with very few automotive vendors in India.

Caparo’s large management team has extensive relationships across all IPOs in India
and are leveraging these rela-
tionships to drive export business.

Caparo has been able to leverage these product capabilities in reaching out to its
diversified customer base and being able to cross-sell various products to the same
customer. This position insulates Caparo from the risk of product obsolescence as well
as makes it neutral to the market share position within OEMs in the country. Moreover,
the ability to sell a cross-section of products to the same set of customers will enable
Caparo to out-grow their competitors at a much
faster pace.

Access to technology

Caparo India’s superior design and development capabilities are a key differentiator vis-
à-vis competitors. Tool room facilities, such as Caparo’s sophisticated tool room set up in
Chennai, are available with a couple of leading independent specialist tool room
companies in India, but no other auto component manufacturers has such facilities in-
house.

Focus on technology is another aspect which will assist Caparo India in enhancing their
profitability as there is a sig nificant difference in the operating margins of ‘build-to-print’
products and engineered and designed components and assemblies.

As the Indian automotive industry gets more focussed on technology upgradation and
produces automobiles for global consumption, there is a greater tendency for OEMs to
develop strategic relationships with vendors who are interested in technology and who
can partner them in meeting stringent quality norms.

The Group intends to continue passing on their technologies employed in European and
North American markets, a key differentiator with other competitors who have to rely on
external partners to get access to such technologies.
CAPARO’S CORPORATE RESPONSIBILITIES
Caparo, as an organization takes pride not only in bringing world-class technology to its
customers; but also in discharging its responsibility of creating an environment of inclusive
growth in the country. At Caparo, Corporate Social Responsibility and concern for
environment, health and safety are the intrinsic elements of the company's long term
strategy.

Caparo's CSR commitment is a manifestation of its determination to improve the quality of

life of not only its employees, but the society at large. Some of the Company's key CSR
initiatives are:

Ambika Paul Foundation:

Ambika Paul Foundation was set up in the memory of late Ambika
Paul, Lord Paul’s daughter, who sadly lost her battle with
Leukaemia in 1968.The Foundation, promotes the well-being of
children around the world through education, culture and health,
and seeks to encourage and inspire them to learn about the world
they live in
In the UK the foundation supports a number of children’s charities, besides the Zoological
Society of London. When London Zoo was under threat of closure, Lord Paul gave
£1million to the Zoological Society of London, which used that donation for the rebuilding
of the London Childrens’ Zoo in her name.

In the United States, the Foundation supports the Ambika Paul Infant Lab Suite at
Carnegie Mellon. Two research teams are working at this lab, to understand infant
development with the objective of designing interventions to help children with
developmental disabilities such as autism and specific language impairment.

Bal Vadis:
Caparo has joined hands with Bal Vadis to take care of the pre-school children of the
labour class in Chennai. They are supported with healthy environment and proper
nutrition. Bal Vadis help in building a good foundation for these children, so that they can
be a part of any good school when they grow up.

In addition to the above, Caparo, as an organisation, is sensitive about environmental

issues. Hence all the Company units have technologies in place to ensure that the pilferage
and emissions are well within the limits. The units observe tree plantation drives to build a
green look while keeping the environment healthy and safe.
AWARDS AND RECOGNSITIONS
Caparo India has time and again received recognition from its esteemed customers, in form
of Awards. Some of the major awards our manufacturing plants have received are:

Plant Name Customer Year Award

CML got awarded

Caparo for:
Maruti 1. Incoming Quality
June -
Limited, MSIL 2. Yield
2010
Bawal and Improvement
Gurgaon 3. Design &
Development

Able to sustain ‘A’ grade performance in

Caparo
Jan – MSIL’s
Maruti
MSIL Feb vendor rating system with zero defects and
Limited,
2010 zero
Bawal
rejections coinciding with peak volumes

Caparo
Metal Hyundai Feb
100 PPM Award
Systems, Motors 2010
Chennai

Caparo Iljin Best Supplier Award and certified for “SQ”

March,
Forging, Automotive Mark in
2010
Chennai Private Limited Hot Forging and Heat Treatment Process

VE
Pithampur Outstanding contribution in the area of supply
Commercial 07-08
-I chain management
Vehicles Ltd.

Pithampur Outstanding Contribution — For best

Eicher Motors 06-07
-I contribution to Supply Chain Mgmt.

Noida HSCI 2007 Outstanding development

 CML HMSI 06-07 Achieving Quality & Delivery Targets

CML Maruti 2006 Overall Performance Commendation

CML Maruti 2007 Yield Improvement

STAMPINGS | OVERVIEW

Caparo India specializes in providing complete steel and aluminium metal stamping
solutions for a variety of applications. It is the only supplier in India possessing capabilities
to meet all stamping and stamping assembly requirements of OEMs. Starting right from the
process design and development stage to providing tools, migration to mass production and
effective delivery management, the company offers tailor-made solutions to its customers.

Having started with a single unit at Gurgaon, Caparo India's stamping operations are now
spread across several hi-tech facilities in India. It has developed capabilities to supply
complete body-in-white systems to OEMs like Tata motors - a skill set unmatched in the
Indian industry. The company's wide range of stamping products include body parts,
chassis parts, long members, reinforcements, brackets, frame add-on parts, and other
general stampings.

Caparo India is also strongly focused on developing technologies to get into Advanced
Composite Materials- perhaps the technology most likely to replace sheets metal over the
next 7-10 years.
STRATEGIC GROWTH AREAS

High Tensile Parts

Caparo India has developed High Tensile parts at its Greater

Noida facility. It is currently supplying more than 15 parts to
Honda cars and more than 10 parts to General Motors. These
parts were earlier imported by the OEMs.

Coil Blanking

Caparo India is setting up a coil blanking facility as an extension

to its TWB facility at Bawal. The facility shall both cater to the
internal requirements of Caparo and supply externally to Maruti
and Honda from July'08.

Tailor Welded Blanks

 TWB's technology is gaining popularity due to the advantage it
offers in terms of reduction in weight, costs and improvement in
aerodynamics and fuel efficiency. Caparo has set up a TWB facility
at Bawal, Gurgaon as a JV with Marubeni -itochu steel, Japan.

STAMPINGS | Products

Product Specialisation

Outer Body Panel

Large Inner Panels

Reinforcements

Brackets

Frame add-on parts

Cross members and Chassis

parts

General Stampings

STAMPINGS | Applications
 Skin Parts - Caparo India manufactures all kinds of skin parts such as outer panels and
inner panels in various sizes (t = 0.5 - 6.0 mm). It fabricates deep draw and extra deep draw
panels and specializes in hemming of doors.

At present, Caparo is manufacturing complete doors for General Motors India's MUV,
Tavera.

High Tensil Parts - High tensile parts are used by OEMs to lend strength and stiffness
with a favourable mass to cost ratio. The manufacture of high tensile parts needs special die
designing capabilities.

Caparo has pioneered this concept in India and supplies 15 such parts to Honda. While
each high tensile die capability requires an average of 10 years of experience, Caparo India
has built such capabilities within one year at their plant at Greater Noida.

Long Members - They are the members on which the complete chassis and body of
commercial vehicles rest, making them a critical component for strength and safety.

Caparo India is making long members for Eicher motors at its Pithampur plant. The company
is the only independent component supplier to import a 4000 ton machine for making a long
member automatically. This will increase the speed of production and ensure quality for this
critical component. These capabilities were hitherto available only with the OEMs.

Assembly Systems - This involves assembling the various body parts including frames,
members, floors, etc through a combination of processes like welding and adding nuts and
bolts.

FASTNERS | Overview

Having started its operation in 2005 from Chopanki (Rajasthan), Caparo Fasteners India
(CFI), is today one of India's fastest growing manufacturers of High Tensile Fasteners. It is
backed by complete technical support from the group company Caparo Atlas fastenings, UK,
a leading manufacturer of fasteners, catering to the European automobile industry for the
last 100 years.

CFI's manufacturing facilities are housed in a state of the art plant with a capacity to produce
26000 MT of fasteners per annum. Within the last two years of operation, it has established
itself as a reliable supplier of fasteners to almost all the Automobile OEMs in the country and
their manufacturing locations abroad. Today, Caparo is a strategic source for fasteners to
leading OEMs like Ashok Leyland, Asia Motor works, Eicher Motors, Ford, General Motors,
HMSI, Tata Motors and many more.

Certified for TS 16949, Caparo Fasteners is a process driven company. New product
development has been the hallmark of CFI. A wide range of products catering to the
automobile industry, aerospace and general engineering applications have been developed
at CFI.
It manufactures standard fasteners that conform to the International Standards JIS, Metric,
Inch series. The products manufactured are forged from cold headed quality medium carbon
steel, alloy steel and stainless steel.
 FASTENERS | Applications

Fasteners are mechanical devices whose basic function is

to join together two or more components in product or
structural assemblies, systems and subsystems. Metal
fasteners such as rivets, screws, studs, nuts and bolts are
used to join discrete parts to produce the finished
product.

Depending of the design requirements, fasteners can be

classified into:

Standard Fasteners
These are fasteners that are pre-classified with respect to
their shape, size and strength by worldwide organizations.
They are generally designed for use in applications where
fastener performance is less critical and largely
commoditized in nature.

Special Fasteners
These are fasteners that require drawings and are
customized for use in specific settings. They are generally
manufactured in smaller quantities in accordance with the
customer's design specifications.

Key Applications
Automotive Fasteners – These fasteners can be found
in virtually every motor vehicle subsystem, including the
body, engine, fender, lights, moulding, suspension system
and wheels. The average automobile manufactured
contains more than 2,000 individual fasteners

Industrial Fasteners - These fasteners cater primarily to

the industrial machinery, aerospace and electrical and
electronic equipment industries.

Aftermarket Sales - There is a large demand for

fasteners for the replacement market in the industrial,
service and government and institutional sectors. The
service sector demand is primarily driven by repair
services, especially for motor vehicles, aircraft and other
transportation equipment.
TUBE | Overview

Caparo India initiated its tubes and tubular products operations with the acquisition of the
over 30 years old, Dewas based company Steel Tubes of India in August 2006. The
company manufactures precision steel tubes for Automobile Industry, General Engineering
and Power Sector.

Caparo Tubes (CTI) specialises in producing ERW (electric resistance welded) precision
tubes and CDW (cold-drawn welded) tubes with adverse D/T ratio and special grades. The
group is working towards enhancing its capacity by modernizing and expanding its Indian
tube manufacturing setup.

TUBE | Products
Product Specialities

ERW (electric resistance welded)

precision steel tubes, structural hollow
sections and conduit.

CDW (cold drawn welded) tubes

TUBE | Application

• Automobile Industry
Main Beam, Handle Bar, Links, Spacers, Propeller Shaft, Steering Column, Automobile
Axle, Exhaust Tubes, Stand Tubes, Accessories Tubes, Brake Tubes etc.
• Shock Absorber Industry
Dust Cover, Inner Tube, Cylinder Tubes, Eye Ring , Bush Etc
• Boiler and Heat exchanger
Boiler Tubes and Air Pre-heater Tubes
• Furniture Industry
• Transformer tubes-Radiator tubes
• General Engineering applications
 • Cycle Industry

ALUMINIUM FOUNDARY | Overview

As a manufacturer of complex aluminium precision casting, Caparo Group has been offering
complete solutions from concept to production stage, for more than 30 years. It has an
excellent track record of servicing a number of high profile customers through its group
companies Caparo Aluminium Technologies and Bridge Aluminium Limited situated in the
West Midlands, UK.

With support and technological know-how from its UK operations, Caparo India started a
green field project for its Aluminium Foundry operations in October 2007. This world-class
facility has been set up at Industrial Park in Sriperumbudur, Chennai to manufacture High
Pressure Die Casting and Gravity Die Casting parts. Caparo India aims to become the best
in class Aluminium Foundry in India and offer products and services of uncompromising
quality and integrity, consistent with its brand image.

ALUMINIUM FOUNDARY | Proucts

Rack Housing for Steering

Column Assembly

Cylinder Blocks – 2 /3/4 Cylinder

Crank-Case Covers / Oil Pans

Wheel Hubs / Brake Drums

Clutch Housings

Bearing Ladders / Ladder Frame

Timing Cases and Timing case

cover

Rocker Covers / Cylinder head

cover

Hydraulic Valve Blocks

Transmission Cases
Power Train Components

Fly Wheel Housings

Compressor Housings /
Compressor Cover

Diesel Injection Pumps

ALUMINIUM FOUNDARY | Applications

Pressure tight parts with highest precision

Safety parts with documented process parameters and certificate
Aluminium engine block for cars
Casting parts with minimum porosity using

Squeeze casting

For safety parts like forks, mounting brackets, steering housing, rack housing
Where ever wall thickness is more and high mechanical properties are needed.

Vacuum Die Casting

Minimum gas porosity in automotive components - bearing caps etc.

Structural components where elongation, weld ability and heat treatment is needed.

Thixoforming - Semi solid metal casting

Higher productivity - Shorter solidification time

Blow hole free - Less shrinkage porosity
Longer die service life
Very good strength, elongation and weld ability
FORGING | Overview

Caparo is commencing its forging operations in

India at Sriperumbudur near Chennai, by setting up
a Greenfield project for the production of forgings
and machined components for various automotive
and non-automotive applications. Additionally,
Caparo India is in process of setting up state-of-the-
art machining facilities for Crankshafts, Connecting
Rods and other components.

Caparo Group is already a leading player in this

domain, with group companies like Clydesdale
Forge in UK. The Group has two manufacturing
sites in UK at Hartlepool and Dudley and a heavy
forgings manufacturing site in Poland.

FORGING | Products

Caparo is commencing its forging operations in India at Sriperumbudur near Chennai, by

setting up a Greenfield project for the production of forgings and machined components
for various automotive and non-automotive applications. Additionally, Caparo India is in
process of setting up state-of-the-art machining facilities for Crankshafts, Connecting
Rods and other components.

Caparo Group is already a leading player in this domain, with group companies like
Clydesdale Forge in UK. The Group has two manufacturing sites in UK at Hartlepool and
Dudley and a heavy forgings manufacturing site in Poland.
TOOL ROOM / R & D CENTRE | Overview

Caparo India set up a sophisticated Tool room and R&D centre at Chennai, Tamil Nadu in
June 2007. Established as a machine shop for the designing and manufacturing of Dies,
Prototypes, Fixtures, and Testing Rigs, the tool room is a strategic step towards branding the
CAPARO Group as an end-to-end solutions provider for automotive OEMs.

TOOL ROOM /R & D CENTR | Services

The tool room undertakes design and manufacture of Dies,

Prototypes, Fixtures, and Testing Rigs for industrial and
automotive applications.

Services offered by the tool room are:

Design:

Product optimization
Placement of our resident engineering at customer’s
source during project inception and execution.
Value addition / value engineering on assembly design
Design of welding / assembly fixtures

Manufacturing of dies

Supply of dies

Manufacture of welding / assembly fixtures

 Testing of assemblies
Manufacture of Pre-production tools.

Supplying prototypes.

AUTOMOTIVE STAMPING

A vast range of products including body parts, chassis parts, reinforcements, brackets,
frame add-on parts, and other general stampings are manufactured by Caparo
Engineering India Pvt Ltd (CEIPL). The product range spans from 0.5 mm to 4 mm, from
as small as a few centimeters to as large as 2.5 meter x 2.0 meters.

Starting right from process design stage to development, proving tools, migration to mass
production and then effective delivery management, CEIPL team up with customers to
complement their strengths and provide a tailored solution.

Stamping
A mix of technologies and equipment ensures the facility is versatile and capable of
addressing varied needs in a cost effective manner. The facility has both tandem line and
stand alone presses and uses hydraulic and mechanical technologies. Range of
equipment starts from 1200 ton large bed size (4 meter x 2.5 meter) hydraulic press. This
gives immaculate finish to large size and complex parts , very important quality criterion for
outer body parts of any vehicle. A tandem line of 4 mechanical presses (1000 ton, 600 ton,
400 ton and 315 ton) with large bed size (3.25 meter x 1.8 meter) operates very efficiently
on large size panels.
Stand alone 315 ton press with bed size of 2.5 meter x 1.6 meter accommodates
progressive tools of medium and small size components. 160 ton and 100 ton presses
address needs of brackets, reinforcements, frame add-ons and other small and child parts
with low and medium volumes.
Welding and Assembling
CEIPL have in-house welding and assembling facilities to deliver parts in form of a
complete assembly. The facility is capable of Nut/stud welding, spot welding and MIG
welding. An effective network of local suppliers for many ancillary processes ensures that
customers get final product in the shape and finish they need. Processes outsourced
include painting, coating, riveting, hardening, tempering, brazing, etc. All vendors are
ISO/QS certified and are dedicated to honour our commitments to customers. CEIPL also
offer door hemming services to leading automobile OEMs. Set in view are hemming
operations on doors of Eicher's commercial vehicles.
Tools and Dies
CEIPL provides its clients with end-to-end solutions. We organize tool procurement for a
wide range of automotive parts. Tools are sourced from Vendors across the globe with
proven expertise. Having an effective network of tool manufacturers has helped us
crashing pre-start of production time and tool costs drastically, particularly for large scale
product development projects. Our customers have trusted us for tool procurement. The
plant also contains a Tool Maintenance facility, which takes care of routine maintenance. It
has skilled people and necessary equipment for maintenance like Die-spotting press,
Lathe, Surface Grinders, Radial Drill, milling machines, etc.