2. Initial Challenges, Improvements and Capacity Enhancements
[1] Never Quit, You'll Be a Winner - Overcoming Financial Challenges and Factory Closure
Liberalization of Indian Economy and Business Expansion by DN Technology
2-Wheel Industry situation in India
- 1989 diversified to cater burgeoning 2-Wheel business as a Hub, with the motto: “Think Globally – Act Locally”
- 1988 started Exporting to OGCs as well: Export of components to DENSO Overseas Group Company at Indonesia
- 1989 Product range expansion by addition of Fan Ventilator
DNIN Labor Disputes and Resolution
The team faced numerous hardships, including high import costs and fluctuating exchange rates. It was important to import hi-tech components to deliver quality products, but the acquisition of raw materials got increasingly difficult as the Japanese Yen appreciated by 40% against the Indian rupee in 1986 as compared to 1984. But instead of backing down, DNIN’s team persevered, implementing cost reduction programs and indigenization efforts without compromising on quality. Localization was the focus in those days to ensure they could create the same components as their Japanese counterparts could do. This would not only introduce new skill sets in India but also decrease the dependency on Japanese factories for the import of components.
1989. A Test of Unity: Overcoming Temporary Setbacks
For the first time, the harmonious company atmosphere was disrupted, resulting in a 46-day factory closure in October 1989. The company’s reputation was on the line, but the team was determined to restore communication and understanding. With maturity and wisdom, all associates worked together to overcome this dark period.
A rare breakdown of communication and understanding among members occurred, DNIN reputation was at stake. The challenge of keeping on the supply line was enormous. An environment for resolving the situation with dialogue was created and after lots of persuasion and persistence, the deadlock was broken. It is praiseworthy the maturity and wisdom shown by our associates to overcome this dark period. Their cooperation and support deserve to be applauded.
DNIN’s Unwavering Commitment to Customers
During these tumultuous times, the customers anxiously watched our progress. With extraordinary support from local suppliers and temporary assembly lines set up at their premises, DNIN continued to supply products. Our major customer supported us by providing temporary production lines at their premises for making the products.
Our parent company in Japan also provided special deliveries to reinforce our efforts. Not only did they maintain our credibility, but DNIN enhanced it in the face of adversity.
1990. Expanding Horizons
DNIN operations were affected adversely at the end of the year 1990 due to our dependence on imports of parts and raw materials for rapidly expanding our product range. At this time to keep associates together, we actively initiated expanding to external markets and began exporting components namely Starter Housing and Frame Starter End to their group company in Indonesia.
Through resilience, dedication, and teamwork, the team overcame countless challenges and continued their remarkable journey, determined to maintain their commitment to producing world-class products.
The Two-Wheeler Revolution
As the two-wheeler market underwent a transformation, with revolutionary products from Hero Honda, TVS Suzuki, and Escorts Yamaha, DNIN seized the opportunity to expand their product range. The introduction of Magneto, Ignition Coil, and CDI enabled DENSO to enter the two-wheeler segment, capitalizing on the booming auto industry.