The benefits of sourcing in India

It all started with an idea

Ramasamy founded Roots in the 1970s with the aim of improving the horns of cars. “In India, we love using our horns, so they have to be robust and reliable. Which they weren’t back then,” says the chairman. “Developing a horn that meets the high and strict standards of the automotive industry takes time, so I decided to expand my business in the meantime. For example, we started manufacturing radiator cooling and brake booster systems.” Ramasamy – not only the company’s founder, but also its chief engineer – is the kind of entrepreneur who sees opportunities and trends before the rest of the world does. His idea to design a better and more reliable horn may have seemed like an unnecessary improvement to many. But when he launched his alternative 12 years later, all the major automotive companies in India were queuing up for his product.

And that attracted international attention. “I always wanted to work with the German company Bosch because they are known for their quality products. When we became the largest horn company in India, we managed to establish a partnership with them. Now, 80 percent of their supply comes from us,” says Ramasamy. “After Bosch, companies like Volkswagen, Skoda, Toyota, and Harley Davidson followed. We are not just a parts supplier, but also a solution provider. Our goal is to provide service and be a strategic partner at a competitive price, that combination is unique.”

Sourcing in India means quality products at a competitive price

According to Ruediger Schroeder, our head of sourcing in India, Roots is a perfect example of the high-quality components and service that can be found in India. Schroeder: “India is one of the largest manufacturers of automobiles, pharmaceuticals and has a significant food processing sector. It also specialises in aerospace and military equipment. All these industries require high-quality components, which means that there are thousands of suppliers who supply these components that meet international standards. Whatever you are looking for, you can get it in India. You just need to have the right partner with the right experience to ensure that you can take full advantage of the advanced knowledge and experience that India has to offer.”

High quality for all sectors, from construction to medical

Roots has now expanded beyond the automotive industry, producing components for customers in the construction, aerospace and medical sectors. “In 2007, we visited a lot of trade fairs because I saw opportunities in the medical sector. But with all the regulations and quality control that the products have to go through, it’s a tough sector to get into,” says Ramasamy. “At one of the trade shows, we did meet the Swedish branch of GE Healthcare, who at the time were importing components for their life science equipment from 48 different suppliers. So we made a proposal to them to develop the entire product for them. To their surprise, we were not only cheaper, but we could also meet their quality and delivery expectations right away. Roots is now GE’s sole supplier, not only for GE Healthcare Sweden, but also for their US and Indian branches.”

Tips for getting started with sourcing in India

According to Ruediger Schroeder and Deepmala Datta, our Head of BD, there are many qualified suppliers in India. “The key to successful sourcing in India is to have the courage to seek the help of a local partner who can find the perfect supplier for you,” says Deepmala. “India is a very large market and if you don’t know what to look for, you can easily end up with the wrong option.”

“You need to understand which cluster has the most expertise in your sector or specific product,” adds Schroeder. “For international companies, with little experience in India, it’s difficult to get a good overview of the market and to be able to figure out where the manufacturing clusters for your product group are. That’s why a local consultant plays such an important role in this process; he or she can do the research for you, and also pre-select the right suppliers based on key criteria such as experience and expertise.”

A mistake that a lot of companies make is to pick the first supplier they come across without doing due diligence or testing. “Finding a high-quality supplier like Roots takes time, because you have to give them the opportunity to study and develop your product or component,” says Deepmala. “That process will definitely take 6 months or more. Having a local representative who can do follow-ups, visit the site, and take over time-consuming processes will not only speed up this process, but will also ensure that your company gets the high-quality solution it is looking for.”