Sona Koyo Steering Systems Limited

Established in 1985, Sona Koyo Steering Systems Ltd. is the group's flagship company, and the largest manufacturer of steering systems in India, catering to passenger cars, utility vehicles and light commercial vehicles. Sona Koyo has technical and financial collaboration with JTEKT Corporation, Japan (formally known as Koyo Seiko Co. Ltd.), the largest producer of passenger vehicles' steering systems in the world.

Sona Koyo's customers include major vehicle manufactures in India such as Maruti Suzuki, Toyota, Hyundai, Tata Motors, Mahindra & Mahindra, General Motors and Mahindra-Renault. Independently, as well as through its network of overseas joint-venture partners, it exports high quality precision products to USA, Europe and Japan.

Commitment to defect prevention and Continuous improvement while meeting or exceeding customer requirements at all times.

In a span of 20 years, The Sona Group has scripted a remarkable growth story. Twenty years ago with a team of 25 employees, I created a business model which invited a customer to be an equity partner in my company. I established the first company of the Group, Sona Koyo Steering Systems Ltd. (then just Sona Steering Systems Ltd.) in partnership with Maruti Udyog Ltd.

The Group firmly believes in creating strong partnerships. Steady and sustained growth, based on a clear vision has enabled The Sona Group to become a global organization. Today, The Group consists of nine automobile components manufacturing companies and three services companies in the areas of engineering design and mobility. The Sona Group has technical and marketing alliances with domestic and international majors Maruti Suzuki India Ltd (India), Mahindra & Mahindra (India), JTEKT Corporation (Japan), Mando Corporation (Korea), Somic Ishikawa Inc.

(Japan), ZF Lemforder GmbH (Germany), Somic Engineering Inc. (Japan), Mitsubishi Materials Corporation (Japan), Fuji Kiko (Japan), Koyo Electronics (Japan), American Axle & Manufacturing (USA) and Sixt (Germany),. The Group's global footprint spans India, Germany and the USA. It has a strategic investment in Fuji Auto Tech, Europe � which in turn has interests in France, Brazil & Czech Republic. Sona Auto Comp Europe & USA provide sales and services support to the Group�s operations overseas. The Group today employs over 3500 people, and has revenues a little in excess of USD 760 million.

The foundation of The Group is based on three core values: Respect for the Individual, Service to the Customer and Excellence in the pursuit of our goals. I am glad that we have followed these principles over the last twenty years. Focus on Quality and the commitment to offer our customers excellence in service, to meet their growing needs, have been the underlying factors of the groups� success. We at Sona are constantly upgrading our core competencies and aligning objectives at all levels to help achieve customer satisfaction. The Group has adopted world-class contemporary manufacturing practices like the Toyota Production System (TPS), group Kaizen activity, participative management and break through management, to continuously learn and grow. One of our group companies has the unique distinction of being the second Indian company to receive both the Deming and TPM Excellence Awards. The Group recently started its journey exploring disruptive technologies to bring them to market in the future.

The Sona Group is dedicated to the concept of Sustainability and views it�s financial, environmental and social responsibility with a great deal of concern. It is already the recipient of the TERI Award 2007 for Environmental Excellence and is working on a G3 Compliant reporting system. Energy Conservation and CO2 emission reduction programs are being put in place to tackle global warming. A Zero Waste program is dedicated to cutting all waste and developing value add products. It's social development programs are focused on education, skill development, entrepreneurship & healthcare. The programs include the village development programme at Begumpur Khatola and Nagina Villages, the revamp of ITI (Industrial Training Institute), Nagina in a PPP (expand) with the Govt. of Haryana, and the setting up of a Centre to promote innovation and entrepreneurship at MDI (Management Development Institute), Gurgaon. The Group is committed to reach out to the underdeveloped and underprivileged sections of society, and equip them with the right skill sets to take on the challenges of life.

The Sona Group's social responsibility focuses on 3 key areas - reduce energy consumption contributing to the effort against global warming, turn into a zero waste group by 2010 and support skills development.

Based on an audit by CII Hyderabad, we have implemented several energy saving devices and undertaken training sessions for our employees. The second round of recommendations is being implemented across group companies. We are also experimenting with alternate fuels and sources of renewable energy.

In order to become a zero waste company by 2010, we are examining all of our manufacturing processes and systems. Waste is being eliminated and products such as waste oil and scrap paper are being completely recycled. Path-breaking steps have been taken to eliminate Chromic Acid (a hazardous material) from our plants. This has the potential to improve paint shops of manufacturers across industries. Efficient usage, conservation and recycling of water are being ensured. Steps are being taken to make us ' water positive ' in the near future.

On Skills Development, the Sona Group has been supporting primary and secondary education in the village of Begumpur Khatola, situated behind our manufacturing facilities in Gurgaon. We have been supporting healthcare, livelihoods and basic infrastructure development, all of which facilitate the education and skills development process. The Sona Group runs a charitable dispensary, supports women's Self Help Groups and provides skills training for women and young people in the community. Women's empowerment has been the keystone to success. Addressing the critical need for Vocational Training, the Sona Group has entered into a PPP with the Govt. of Haryana and has completed the first phase of revamping ITI Nagina in Distt. Mewat. Students are being introduced to modern manufacturing concepts and practices, making them "job ready" across industries.

Dr. Kapur has set up an incubation centre for Innovation in partnership with MDI Gurgaon. This addresses the need for support to innovation and entrepreneurship development. 30% of the seats have been reserved for weaker sections, taking forward the Government agenda on Affirmative Action.

The Sona Group is acutely aware of its responsibility towards following Environmental, Human Resource and Societal best practices both within its premises and beyond for the wider societal good.

Our core values are: Respect for Individual, Service to Customers and Excellence in Pursuit of our Goals, and these reflect in our CSR policy as well.

We are committed to our various stakeholders.

Environment:
We are committed to (a) using environment friendly and safe process in production, (b) conserving water & energy by consistently reducing consumption and wastage and (c) complying with all safety & environmental laws & regulations. We set and periodically review sound environmental objectives and targets for each manufacturing unit. We will do everything possible to become carbon and water neutral within the next 5 years.

Employees:
We are guided by our core beliefs to promote the well-being and development of our employees (as well as their families) through our stated corporate value of "Respect for the Individual".

Community:
We strive to be a good Corporate Citizen by empowering people & communities by promoting skills development at the primary, secondary and vocational level.

Skills development is being taken to its logical conclusion either via job creation or support to Entrepreneurship. Skills Development cannot be achieved without the requisite support in the areas of Health, Water, Sanitation and income generation, which The Sona Group supports in specific communities.

Suppliers:
We regard suppliers as our partners and work with them to help us achieve our objectives in environmental, HR and social development programmes.