The auto components market as a whole, especially the rubber components aftermarket space for passenger cars, is constantly developing both in India and overseas. The aftermarket or replacement spare parts market for passenger cars is recession-proof, as it is not directly correlated to new car sales volumes as the existing 1 Billion plus cars on the planet will continue to drive and need replacement parts irrespective of new car sales going up or down. The current size of the global aftermarket for rubber parts market exceeds US$500Mn in annual sales and growing at a very healthy, double-digit CAGR.
However, a lot of the erstwhile developed markets find it unviable to manufacture rubber products due to high input costs, some environmental concerns, and growing inflationary pressures. Even China is not the favoured sourcing destination anymore. Clients look for world-class manufacturing standards and quality certifications and approvals with emphasis on consistent good quality and a credible track record. They require a complete range of parts and the manufacturer’s ability to develop quickly, new product offerings for future for new models of cars, which means complete design and development capabilities with quick turnaround times.
Based on its experience in dealing with overseas clients, Chopra Retec Rubber Products adapted to these customer standards and technological needs very early in its journey, and what proves this, is the fact, that no customer ever left the partnership with the company. They build their business around relationships and not the other way around.
The Growth Story
The company serves a very niche segment of the passenger car aftermarket. When it started its foray into global markets, it chose to start with the toughest i.e., Germany. The reason was simple. If the company could break into the German market (decades ago when they did, ‘Made in India’ was not an acceptable standard) it would be ready to face and enter other global markets. It needed to be in that space of the automotive rubber part application where the replacement volumes and demand would be large and frequent.
Logically, it chose to look under the car (the most ill-treated part of a car and therefore the need to replace parts frequently) and focussed on building a range of suspension parts for Exhaust/Silencer/ Muffler applications. The company broke into Germany, the rest of Europe, Canada, the US, Australia, and NZ, and across continents, and supplied to over 30 countries.
Chopra Retec’s range of such parts is perhaps one of the largest in the world in this category. It saw headwinds in exhaust applications over 10 years ago, due to alternative fuels and EVs entering the market and realized that Exhaust (fitted in ICE or Internal Combustion Engines) would gradually diminish in terms of demand. It again looked under the car and branched into ride control applications (Suspension, Chassis, and Steering), and built a formidable range of products over time. Today, the company has moved up the value chain and its primary customers include the two largest players in both these verticals. Having moved to a larger and state-of-the-art manufacturing facility a few years ago with additional capacity, it is now further branching out to rubber products for Industrial applications and other consumer-facing industries since the rubber has widespread use and applications.
“Testimony to the good work we did in global markets was the very prestigious contract we received from the marquee company, Aston Martin Lagonda UK (the makers of the fabled car that James Bond drives)”, says Pranay Choprathe, Managing Director, Chopra Retec Rubber Products. “They were developing a special limited edition car (ONE-77) priced at $2.5Mn and could not find an exhaust hanger to match their needs. They found us and we delivered what they needed in a few weeks. We are now their preferred suppliers for special exhaust hangers”, adds Kiron Chopra, the Chairman and Managing Director, Chopra Retec Rubber Products.
Sound Leadership & Expertise
The Chairman and Managing Director, Kiron Chopra is a Rubber Technologist from the UK and is ably supported by his son and Jt. Managing Director Pranay Chopra, a Management Professional in managing the growth and progress of the company. Along with them is a crack team of 120 comprising Engineers, IT Professionals, Technical personnel, and a skilled workforce which have been a critical part of the company’s journey. With the combined experience of the team, the company has created a reputation of being the preferred supplier to Tier I & II companies worldwide.
From day one, the management imbibed the value and work culture from its global clients including top-class communication, building a complete range of products, providing R&D and design and developing facilities, consistently good quality, on-time deliveries, competitive pricing, and above all, a constant endeavour to exceed their expectations. Besides these attributes, the company has been assessed and certified by global rating and certifying agencies such as Dun and Bradstreet, TuV, NQA, and more, for quality standards that are an imperative need of every customer as well as a tool to continuously upgrade internal quality standards and processes, through regular audits.
Standing Apart
The new plant of the company commissioned in 2017 is a state-of-the-art world-class facility that is designed as per Industry 4.0 standards. The capacity of the new plant exceeds 10 million components per month. The company has so far developed over 1200 components in-house. With inputs from their valued clients, they continue to constantly upgrade their process and quality standards to meet and exceed customer expectations. Their highly qualified team led by Kiron Chopra, himself a Rubber Technologist from the UK, continues to innovate and create cost-effective, better-engineered solutions for all their customers’ needs.
Chopra Retec Rubber Products or CRRPL has set benchmarks with its consistently good quality and competitively priced products and gives a lot of importance to customer satisfaction and experience. They have been market leaders in the segments they cater to and are preferred suppliers to all their leading clients, who themselves are global market leaders. “With good corporate governance and intent to address environmental concerns, giving women a fair share in terms of employment opportunities (over 30 percent of our existing workforce is women), creating a welcoming work environment, paying vendors and service providers and employees on time, every time, are some of the key differentiators that separate CRRPL from the other companies in the space”, states Pranay Chopra, Managing Director.
Looking Ahead
Due to a limited automobile market in India in the 90s and its landlocked location, the company decided to explore global markets for volumes and consistent business. They initially struggled to get into overseas markets as the headwinds included a poor perception of Made in India products, exchange rate volatility, the emergence of China as a supply source, technological challenges, poor port and shipping infrastructure, and more. They then decided to enter through the toughest overseas market, Germany, home to Mercedes, BMW, Audi, Porsche, and VW, which would then further give it the confidence to take on other global markets. However, the company resolutely followed the mission to be the best in what they do, and by participating in trade fairs and learning on the go, it broke the ice with a German company at their terms, that being to supply and deliver their ordered goods for which they would pay after testing and customer feedback. It was a very unbusiness-like way to start but they earned their respect and more business followed as a result.
We are developing niche and very high-quality products for defence, textile, material handling equipment, and the domestic automobile sector besides focussing on increasing market share with existing global clients
The company has in the past, pre-empted change and continues to recognize new opportunities, be it in the Automobile or other spaces. In the post-Covid era, followed by supply chain disruptions and geo-political events leading to inflationary pressures and struggling global economies, they see a huge opportunity in both automotive and nonautomotive areas. “We are developing niche and very highquality products for defence, textile, material handling equipment, and the domestic automobile sector besides focussing on increasing market share with existing global clients. As in the past, we hope to consistently grow at 15 to 20 percent in the next three years and increase the pace of this growth in subsequent years”, concludes the C & MD.
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