SWOT Analysis of Rane Madras Limited - Steering
Strength:
- Established brand in automotive steering & components
- Strong technical expertise and manufacturing capabilities
- High Retention of higher level management employees
- Great place to work certificate
- Partnerships with major automobile OEMs (Original Equipment Manufacturers)
- Has a Global platform of Ball joint Manufacturing
- Great testing facility
- Supply connectivity with major OE's
- Has a high domestic suppliers near to the plant
- Freedom to improve technically by mistake
Opportunity:
- Government policies promoting "Make in India" and automotive sector growth
- New Fossil free Linkage for Volvo trucks has been launched which meets the latest stringent
environmental regulations.
- Growing automotive aftermarket segments among the competitors.
- Many latest requirements of Lower control arm and Multi suspension joints are there through
the global customers
PEST Analysis of Rane Madras Limited - Steering &
Political Factors:
- Policies promoting “Make in India” initiative and incentives for local manufacturing.
- Import/export restrictions on automotive parts, affecting raw material procurement.
- Increasing regulations on emissions and pollution control influencing product design.
- Availability of government grants for R&D in electric vehicles (EVs) and green technologies.
- Compliance with global automotive standards (e.g., Euro norms) for exports.
Social Factors:
- Growing demand for EVs, lightweight, and high-efficiency components.
- Increasing urbanization leading to higher personal vehicle ownership, creating demand.
- Rising awareness about road safety driving demand for advanced steering and suspension
systems.
- Need to attract and retain highly skilled engineers for R&D activities.
- Strong focus on maintaining a reputation for quality and innovation to attract OEM partners.
imited - Steering & Suspension Division (R&D)
Weakness:
- Technology advancement is always second step. (i.e. Competitors are at Steer by wire &
Wireless steering system, but we are just entering rack EPS system)
- Currently getting a business of child part supply to competitor ( Ball joints for steering system)
- Lower level employees always don't retain in the company
- Don't have a experienced employees from the relevant domain
- Benchmarking & Key takeaway are very less
- Production department don't want to move from the comfortable zone of manufacturing
- High level of inter department conflicts
Threads:
- One of the forging supplier has become competitor for the organisation by having partnership
with the leading steering manufacturer
- Wireless drives recently invented by Kia motors doesn't have even ball joints and only motor
setup.
- Recent steering failure in S-Presso and EECO of Maruti Suzuki impacted on no new RFQ's
- The technical partnership with THK was lost and which is now with the competitor
mited - Steering & Suspension Division (R&D)
Economic Factors:
- Volatile prices of steel, rubber, and other essential inputs impacting margins.
- Fluctuations affecting operational costs and capital investments in R&D.
- Rising automotive demand post-pandemic recovery, benefiting steering and suspension
components.
- Export opportunities and challenges due to currency exchange rate variations.
- R&D investment is directly tied to the growth cycles of the automotive sector.
Technological Factors:
- Research on electric power steering (EPS) systems and adaptive suspension technology.
- Use of Industry 4.0 technologies to enhance production efficiency.
- Patents for new technologies offer a competitive advantage.
- Pressure from global competitors developing innovative solutions.
- Availability of funds and partnerships to develop cutting-edge technologies.
- Collaborations with international OEMs for joint R&D efforts.
