1. You May Forget the Past - But Never Forget the Lesson
[1] The Indian Economic Policy and Setting Up of DNIN in Pre-Liberalization India
Introduction of India’s Environment
While DENSO India has reached great heights and won several accolades throughout its history of nearly four decades in India, it was not a smooth ride by any means. But as they say, ‘never quit and you’ll be a winner’, the team at DENSO never stopped fighting and stayed put even in testing times. Whether it was delivering the first consignment or challenges related to find the right manufacturing unit in India, DENSO fought through valiantly. It couldn’t be possible without the family that the organization has built over the years. To understand the troughs and the crests of the ride, it’s important to start from the beginning. So, fasten your seatbelts as we take you on an enthralling ride of challenges, innovation, redemption, and shared success - The DENSO India Story.
The Birth of the DENSO Family and its Legacy
In 1984, DENSO Corp. embarked on a 2nd wave as one of the strategic Overseas expansion plans, targeting major global markets with promising potential, including India. This expansion led the company to establish operations in Coventry, UK, Deutschland, Germany, Battle Creek, Michigan, U.S., and finally, India.
This marked the beginning of DNIN (DENSO INDIA PVT. LTD.) in Gautam Budh Nagar, Uttar Pradesh, India. The primary focus of DNIN was to produce electrical automotive components for the Indian car manufacturers. To ensure a successful entry into the Indian market, DENSO chose to collaborate with the local company, Shriram Fibers Ltd. (SRF).
With a well-thought-out strategy in place, DENSO followed the path of other Japanese automakers that had entered the Indian market before them. This collaboration with SRF proved to be a strong partnership, paving the way for DENSO's growth and success in India and beyond.
Introduction of India’s Environment in 1980s
The Indian Economic Policy and Setting Up of DNIN in Pre-Liberalization India
India Industry Structure by Sector: Primarily dominated by Agriculture=49%, Service=31%, Industry lagging by =20%
1980s. This was the decade when India began to change.
Pre 1983 was an era where Socialism prevailed [FI (Foreign investment) = Max 40%], which was later known as ‘Pre-Liberalization India.’
Automotive Policy & Car Manufacturer Trend in 1980s
Entry of Foreign makers
In 1980s, Govt. of India announced Indian Automotive Policy, many companies seize the opportunity.
Government of India adopted strategy to build up domestic auto industry with Japanese alliance - JV (Joint venture) with Suzuki as Maruti Udyog Ltd. (Several 4 & 2-wheel makers did JVs w/Indian manufacturers)
1983. Maruti (Suzuki) setup, Toyota entered Indian market.
Start of DENSO Operations in India:
DENSO started operations in India almost 40 years back, foreseeing the vast potential of a budding Indian automobile market, with potential as one of the largest and fastest growing markets in the world owing to an increasing middle class and a young population.
1st factory established in 1984: SRF NIPPONDENSO India Ltd.
Based on this foundation, NIPPONDENSO Corporation Japan (presently DENSO Corporation) entered into a collaboration with SRF India (Shriram Fibers Ltd.) to establish the 1st DENSO company in India under the name SRF NIPPONDENSO India Ltd. as an Indo-Japanese joint venture, DENSO had 49% share, to cater Suzuki & 2W makers in India.
The Company was incorporated to manufacture alternators/ generators with or without vacuum pump regulators. It undertook to set up a factory in Greater Noida (Uttar Pradesh) adjoining India’s Capital city Delhi.
1985. DNIN Land Breaking Ceremony, and First Batch of 26 Associates Recruited. It undertook to set up a factory with an installed capacity of 150,000 nos. each of alternators and starter motors and 100,000 nos. of wiper motors.
Discovering the Birthplace: The Story of Tilpatta and DENSO's Legacy
In search of a suitable piece of land, DENSO's promoters ventured to Tilpatta, Uttar Pradesh, a hidden gem in present Greater Noida area adjoining India’s Capital city Delhi in 1984. This little-known village lacked basic amenities but had the makings of a future industrial hub. Its proximity to established companies like Toyota, Suzuki, Yamaha, and Honda sealed the deal, and Tilpatta became DENSO's chosen home. Finding opportunities through extensive research is at the heart of DENSO’s mission from the beginning and transforming Tilpatta into an industrial hub is an epitome of their extensive planning and execution.
A Sacred Beginning: The Inauguration of a Dream
On the auspicious day of May 1, 1985, the Bhoomi Poojan (land-breaking ceremony) took place, marking the dawn of a new era. Spearheaded by Mr. Som Mittal and Major General Krishan Vir, this event set the stage for a team of dedicated individuals to transform Tilpatta into an industrial powerhouse. The setting stone was set, and it was time to build the legacy of one of the greatest automotive parts companies in India. It was time to take India’s automobile industry to heights never achieved before.