Intertek to set up testing labs in India

Intertek has been in India for the last 15 years. “When we entered India, the most exciting markets were the consumer, oil and chemicals industries. We have now diversified into automobiles and cater to around 15 OEMs in India; while some are new, some are part of our global client list,” says Rajesh Saigal, regional director, India & Middle East, Intertek. Intertek, which has revenues of over 775.4 million pounds (around Rs 5,870 crore) caters to several industries around the world. It provides a wide range of testing, certification and system certification services for the automotive industry made possible through its many accreditations, including A2LA Automotive EMC Laboratory Accreditation Program (AEMCLAP), Automotive Manufacturers Equipment Compliance Agency (AMECA), ANSI-ASQ National Accreditation Board (ANAB), International Automotive Task Force (IATF) and GM and Ford-recognised testing facilities. Wide range of services Its capabilities include EMC testing, acoustical testing, environmental testing; temperature, humidity, salt spray, thermal shock, and performance testing; accelerated stress testing, vibration, fuels, lubricants and engine testing, materials analysis, endurance, and durability.

Intertek also offers supply chain development services including on-site supplier audits, product inspections and warranty investigations, and automotive interiors and electronics testing. “We are now talking to Volkswagen for providing our services since we service them in Germany. We are offering the complete range of services in India as is being done abroad. But for a few we may have to go to our laboratories in Asia-Pacific or the US. All labs which join hands with us in India will have to undergo a very stringent quality test to match our levels,” says Saigal.

Intertek has three labs in India — one each in the North, South and West with whom it has a strategic alliance. An initial investment of Rs 30 crore is envisaged in 2011 for setting up its own labs and till then it wants to generate revenues from these three satellite labs. The company’s biggest laboratory is in the US where a single chamber alone can test three cars in one go.

Recently Intertek bagged a small and significant order from Tata Motors, which had to choose between spending money either in manufacturing, improvising the Indica or in setting up quality labs to test the car. “Since we did not have a lab here, we flew key persons from Tata Motors to the nearest destination in the UK where we have a big facility and showed them the work we were doing for Land Rover and Jaguar,” reveals Saigal. A convinced Tata Motors soon availed the services of Intertek to get its car tested and certified.

“We test anything from a pin to a plane. Anything that gets manufactured gets to have certain manufacturing qualities. The message we send out to manufacturers is that they should focus on the core areas and we will take care of their quality needs,” notes Saigal.

For Intertek, the automotive business falls under its electrical division, headed by Saigal in India. The company conducts reliability testing for vehicles which involves anything that has gone into the making of the product, be it the doors, hinges or wipers.

“We also carry out material testing. What distinguishes one product from another is the material the product uses. The third thing which is equally important in a car is the electronic side — the electromagnetic interference and the electromagnetic compatibility. So broadly speaking, in automotive we test these three parameters,” he adds. In a typical car, there are more than 1,100 electrical and electronic parts which need to be compatible with each other. “Within these broad three tests, there are hundreds of tests in each of these areas,” says Saigal.

The need for testing

According to Saigal, manufacturers prefer to focus on the core areas and some carry out 70 percent of the tests. Also, with laws varying from country to country, a carmaker like Honda may equip itself with 70 percent of the tests but may go in for 90 percent in the US. Intertek takes care of the deficiency of 30 percent in India and 10 percent in the US globally, notes Saigal.

“They are specialisation niches. In testing there is a protocol of a bench test and a regular test. If Maruti produces 10 lakh cars, then it has to check all of them. But it cannot check all the airbags in its cars. It is for these kinds of checks that companies go in for specialisation. No carmaker worldwide has an OK from regulatory authorities for self-accreditation, which means they have to go to a third party for accreditation. For example we test the glass used in a car and give it an e1 or e2 mark depending on the tamper-proof quality of the glass. We also increase the knowledge horizon of the customer, which is important in our business,” he says.

Saigal is hopeful that Intertrek would find new business in the growing list of Tier I and II automotive players in India. “When Volkswagen inaugurated its plant in Chakan earlier this year, we were part of a Tier I and II suppliers meeting which saw 250 vendors participate. The response was so overwhelming that all 250 of them were eager to start their own subsidiary companies within the Chakan region. As we increase our scope of business in India, we are also approaching Tier I and II players,” he concludes.