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Present Perfect, Future Ready!

By Niranjan Mudholkar,

Added 14 March 2019

While integrating technology on its lines and in its products, the Company is also investing in training and upskilling its employees to make them ready for the next phase of growth, says Biju Balendran, MD & CEO, Renault Nissan Automotive India Private Limited.

You were the first employee to join Renault Nissan Automotive India Pvt Ltd. in 2008. And recently you have taken charge as the MD & CEO after being the Plant Director. How's been the journey for you personally?
It is not very often that one gets an opportunity to be part of the launch team to build a plant of this size and scale. This journey has been special and exciting for me, and it continues to be so. From the day of ground breaking and laying down the foundation stone, I have been there and have grown with Renault Nissan Automotive India Pvt Ltd (RNAIPL). I have been a part of 18 car launches of three Brands in a span of nine Years. I have worked in various departments like Plant Engineering, Process engineering, Powertrain production, and also had an opportunity to work in Nissan South Africa and was heading the stamping and Chassis Plant there. The professional experience gathered over the last 11 years in RNAIPL has been unmatched.
After returning from South Africa, I was leading the team as the plant director before taking up my role as Managing Director & CEO of the company in December 2018. Today I am proud to lead a team of professionals at RNAIPL that has unique distinction of producing nine models of cars from three brands - Nissan, Datsun and Renault. We also have two Power Train Plants producing Engine for domestic cars and also 3C Parts to Global Plants. We not only make cars for the domestic market but also export cars and parts to 69 countries. RNAIPL is a true representation of the Alliance spirit and philosophy, and I'm excited to be part of this journey.

Tell us something about RNAIPL's manufacturing strength in terms of capabilities and capacities. How is it utilized with regards to the different brands and models manufactured at the plant?
RNAIPL was the first Alliance plant. It is a unique manufacturing unit in the automotive world where we make cars for three brands on the same lines by the high skilled Operators. It is a testimony of cooperation and collaboration between two leaders in automobiles. Both bring best of their technology and process expertise to create world class products and follow Alliance Production way. At RNAIPL, we have constantly engaged in quality and improving productivity. We combine their work cultures to create Alliance Production Way and invested in Nissan's way of Monozukuri (manufacturing). This again is one of its kind in the industry. It helps us set high standards in efficiency and productivity. We follow the APW strategy of three Nevers - Never receive defects, Never make defects, Never pass defects - to deliver on process excellence, and build on relationship of trust with customers.
It is a matter of pride for us that we have launched 18 models since we rolled out our first car from RNAIPL plant in 2010. Of these 14 were completely new cars including Datsun - a brand that was revived from India - and three CKD models. On an average we have been launching a new car every nine months. The schedule has been very busy for us and I can assure you that with the line-up of new cars in the next few years RNAIPL will be always busy.

What are your priorities in the new role?
We will continue to focus on being a customer-centric and sustainable Alliance manufacturing company. Guided by relentless focus on creating value for customers, RNAIPL will constantly strive to implement the critical initiatives required to achieve our vision and deliver excellence for the global market. We will build high quality, affordable and safe cars for everyone.
The goal is for all our operations to be very best in class and to develop our people and enable employees to reach their full potential. We are working with organizations such as NSDC to upskill plant workforce to be future ready. This means we are getting ready for the technology changes happening in the sector. KICKS car launched in Jan 2019 is the first connected car for India from Alliance. Future cars will be connected / e-power / EV etc. We have put in place an extensive and rigorous training programme for employees on soft skills as well as modules that will help them explore opportunities beyond their regular work. This will also help us give our employees exposure with other Alliance entities.

What are some of the key ‘Green' manufacturing initiatives implemented by Renault-Nissan Alliance Pvt. Ltd. at the Chennai plant?
As a responsible automotive company, RNAIPL is focussed towards adopting green manufacturing initiatives to reduce its environmental impact. We are constantly evaluating and working towards minimizing our ecological foot print. The plant has taken green initiatives around water and energy management.
Water Management: RNAIPL has installed three rainwater harvesting ponds with 1.9 lakh KL rainwater storage. These can help RNAIPL meet its water requirements for up to 130 days. The plant also has an in-house wastewater treatment and an evaporator facility. These have helped us achieve Zero Liquid Discharge benchmarks.  Regular water audits and awareness programs are held at the plant shop floor. These practices have significantly impacted RNAIPL's operational water needs and inculcating self-sufficiency by reducing dependence on the Government water supply.
Energy Management: With a commitment to reduce carbon footprint across its operations, RNAIPL has undertaken active measures to institutionalize an effective energy management plan. This includes compliance with global best practices and facilitation of various energy saving projects. In 2016, RNAIPL started using wind energy as an alternative source for power. This year, RNAIPL intends to tap into bio-thermal sources too.
RNAIPL's energy initiatives has brought down energy use per car by 42 percent in the last eight years. The Chennai plant ranks among the top four for optimal use of power among all Nissan plants in the world.

What is the percentage of local content in your production right now? Do you see this number increasing? What are the challenges in the same (in increasing local content)?Localization of products depends on various factors and we are constantly finding ways to increase them. Our products such as Kwid and rediGO has 98 percent localization. Both these cars are developed on the CMF-A platform catering to the affordable segment. We started working with 180 suppliers when we began our operations and presently we are working with over 350 suppliers. At present, some high technology components are being imported. We are encouraging our local suppliers and extending all necessary support to supply even these parts from India. The proximity of other Alliance entities such as Renault Nissan Technology Business Center India in Chennai and Nissan India Digital in Thiruvananthapuram cuts down on development time and helps increase localization in any new product or any upgrade.

Tell us about RNAIPL's exports business at present. Which are your best-selling products when it comes to exports? And what is the domestic sales to exports ratio for RNAIPL?RNAIPL produces vehicles for both domestic as well as export markets. Exports are an important and integral part of our business strategy from India. The plant has the flexibility to make models from Renault and Nissan on the four common models we have. We adhere to the global manufacturing standards and have been exporting not only vehicles but also engines, gearboxes and 3C parts since start of production in 2010. We export cars to 69 countries currently. Nissan was awarded the exporter of the year in 2016. We also export nearly 4000 parts to 66 plants in 28 countries.
Presently, we are exporting Kwid, Micra, Sunny, KICKS and all Datsun models to other markets. In the last nine years we have exported nearly 8.5 lakh vehicles from RNAIPL.

Tell us about some of the new products to be launch in the next six to twelve months from the Chennai plant?
Though it will be difficult to share specific details, but we have a healthy pipeline of launches this year. It will be a mix of new models as well as facelifts and changes in the existing line up of vehicles.

Tell us about RNAIPL's strategy with regards to e-mobility?
Both Renault and Nissan have been at the forefront of the electric vehicle (EV) revolution globally. Nissan LEAF has been the most successful electric vehicle in the world and Renault Zoe is the preferred EV in Europe. Earlier this year, we had announced to bring LEAF to India. At RNAIPL we are committed to meaningfully support the government's vision for e-mobility in country. We are working to acquire specific skills sets for our employees to stay ahead of the game as the industry evolves from mechanical to an electric and connected world.

As a manufacturing industry veteran, how do you see emerging technologies like AI and machine learning impacting the overall plant operations in the coming times?Artificial Intelligence (AI) and machine learning tools are changing the modern workforce environment. Robotic Process Automation has enabled tasks to be done using algorithms. AI mechanics and robots are now being used in factories to manufacture full cars and not just complete one task on the lines. While we integrate technology on our lines and in our products, we are also investing in training and upskilling our employees to make them ready for the next phase of growth.
At RNAIPL, our focus is on making high-quality cars at right price points with the right combination of manual workforce and machines. At our Chennai plant, we have created the right balance between manual processes with automation. We believe machines should support humans and not replace them. Machines are preferred for specific functions, and jobs with a high degree of quality, precision, high-risk working conditions, as well as ergonomic requirements. This is in line with our business strategy and keeping in mind the return on investment in this capital- and labour-intensive sector. At RNAIPL, we use automation for difficult operations such as seat manipulators, wheel and tyre manipulators, etc.
END