HIDA JOURNAL 2014 SPRING No.4

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No.4 SPRING 2014 7Imperial Auto Industry. Ltd.(IAI)· Mr. Lamba: ExecutiveofficerTokai RubberIndustries (TRI)FINANCINGBranch outIndiaJapanTokai ImperialRubber IndiaPrivate Limited(TIR)・Mr. Yamada: President(until March 2013)・Mr. Lamba: ExecutiveofficerSales transactionFINANCINGTokai Rubber Industries, Ltd. (TRI) was established in Komaki City, Aichi Prefecture in 1929. It has overseas offices in 23 countries and supplies automotive parts, such as anti-vibration rubbers and hoses, and precision parts for office equipment to the world. The company was the first Japanese automotive hose manufacturer which branched out into India. After establishing a joint venture company (TIR) with IAI in 2005, TRI and IAI launched a joint business operation of high-pressure rubber hoses for construction machines in 2013.We interviewed Mr. Junichi Yamada, a former president of TRI’s locally-incorporated company in India (TIR) until March 2013 and current General Manager of Global Business Development Dept., and asked him about how TRI chose IAI as a joint partner. Mr. Lamba learned three pillars in Japan during his first visit to Japan in 1991, and has practiced them every day since he returned home. This effort has blossomed fully in TIR’s business now.[Date of interview: December 13, 2013; Interviewer: Toshie Taga, Senior Manager, Strategic Management Group, Management Planning Department]――When you branched out into India, why did you choose IAI as your joint venture partner?Our company started considering advancing into India when we received a request from a domestic automaker in 2002 to manufacture hoses in India. We looked for a partner in India and picked IAI from several Indian firms with a good reputation. For next three years or so, we mutually deepened trusting relationship by conducting business transaction, in which TRI exported hoses manufactured in-house and IAI cut the hoses and delivered the finished products to customers. In India, companies tend to focus on short-term profits of own company rather than considering customers’ position. However, IAI demonstrated integrity when it dealt with defective quality products, so we determined that IAI was a trustworthy company as a joint venture partner. Also we had established personal trust with the Chairperson of IAI and Mr. Lamba, and it might affect business favorably. Having been involved in business with the United States and European companies in addition to the business in India, Mr. Lamba is an open-minded person. Also Mr. Lamba is pro-Japanese with experience of staying in Osaka and Shizuoka in Japan for about six months when he was young. We think this was one of the factors that we chose to work with IAI based on trust.――How do you view the production and quality control of IAI and TIR?As I said earlier, “IAI demonstrated integrity when it dealt with defective quality products.” Before we started the joint venture, products we were to deliver received transport damage once. At the time, IAI dealt with the problem for us. IAI has a proper way of thinking about customer and quality. Moreover, while operating this joint venture together, we think IAI has gained better understanding of the way Japanese companies, including us, view our customers.As a result, when a customer pointed out a defective process, improvement was made within a specified period of time. Also IAI is receiving high evaluation marks about their improvement effort from a Japanese automaker. One big factor may be because the TIR plant is built near IAI, when a defect occurs, we can discuss it face to face. At any rate, after we started the joint venture, its quality and management have both improved dramatically through day-to-day improvement activities and other efforts.TRI has other partners in addition to IAI in our business operation in India, but nevertheless, we have frequent discussions with IAI to search for things beneficial to both of us. In the future, we would like to maintain and strengthen the trusting relationship we have built and further develop our business in India.――Thank you very much for taking time to talk with us today.From the left, Mr. Yukio Nakashima (Project Deputy General Manager of Human Resources Development Dept.), Mr. Junichi Yamada (General Manager of Global Business Development Dept.) and Mr. Naoki Shimizu (Public Relations Dept./Investor Relation Office, Finance and Accounting Dept.)Mr. Ajay Paliwal(Current General Manager in charge of Quality and Engineering) Participated in the Quality Management Program (PQM) for South Asia Federation of AOTS Alumni Societies in FY1997In HIDA’s Management Training, I visited plants of various industries, such as automobile, sanitary ware and steel, and observed Japanese companies’ efforts toward quality control. This experience was most helpful. Staff members of Kansai Kenshu Center were all friendly. I still remember the reception staff and the translator. Indian food I had in the dining room of the center was really delicious. I was able to live comfortably during the training.Mr. Arvind Kumar Agrawall (Current IAI Plant Manager) Participated in the Program on Company-wide Problem Solving in FY2003Improving the plant layout based on what I learned at HIDA’s Management Training made a huge difference. We made significant progress in productivity. Also I was very impressed by Japanese people’s orderliness and their professional attitude toward work which I observed while staying in Japan. If there is an opportunity, I would like to participate in training in Japan again and brush up my knowledgeMr. Ajay PaliwalMr. Arvind Kumar AgrawallVoice of executives who participated in HIDA’s training after Mr. LambaTokai Rubber Industries Operates Business in India

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