'Tie-ups are critical for growth in the automobile component industry,’ says Deepak Sharma of DS Enterprises

Company: DS Enterprises

Founder: Deepak Sharma

Place: Faridabad, Haryana

Turnover: Rs 10 crore

Sheet metal is often used in automobile bodies since it is pliable, and can be cut and bent into different shapes. To leverage this versatility, Faridabad-based entrepreneur Deepak Sharma launched his company DS Enterprises in 2010. He sought to manufacture metal sheets for various clients like Maruti Suzuki, Tata Motors and Ashok Leyland.

33-year-old Sharma, armed with his metal sheets, is a BSc graduate in Industrial Chemistry. He invested Rs 20 lakh into his automobile component business so far that has clocked a turnover of Rs 10 crore in the last year.

Excerpts from an interaction with SMBStory:‍

SMB Story: How did the company grow and diversify into different categories?

Deepak Sharma: We started with manufacturing sheet metal components for two-wheelers. To be more specific, we were making sheet metal parts for Mahindra Stallio and Mojo. However, these products didn’t take off and we suffered a huge loss in development.

We then ventured beyond two-wheelers to become successful. Our clientele has certainly grown because of this. We grew from Rs 32 lakh in the first year to Rs 10 crore in the previous year. ‍

SMBS: What is the market size of the sector, and how are you differentiating from the competition?

DS: We are unique because we also manufacture components for four-wheelers. These metal components are specially designed based on the demands and trends of our customers and society. We also constantly try to diversify our offerings in order to keep expanding.‍

SMBS: What are your challenges in terms of sustaining and growing the business?

DS: The primary challenge for my company is fluctuations in the quality and pricing of raw materials . It is difficult to address this because we always work with this raw material at each step of the process. However, I have seen that this problem can be solved if there is a tie-up with vendors or other companies, which deal with raw materials. ‍

SMBS: What is your advice to people who want to set up their business in the same sector?

DS: Tie-ups and partnerships with other companies certainly help to grow in this sector. It also helps to constantly evolve and diversify the business. Further, the National Small Industries Corporation Limited (NSIC) Raw Material Assistance Scheme is great for new companies as well as existing ones. Any new business should also avail the various MSME subsidy schemes.

‍SMBS: What is your dream for your business in the future?

DS: For us, the next step is to expand our business into the railway sector, and manufacture components for it. There is huge potential for us and other MSMEs in this sector. However, even if we are dealing with automobiles, we need the government to ensure that companies such as SAIL, TATA and JSW are giving us optimum rates for raw materials. According to the need, they must increase or decrease these prices.

‍(This story is published in partnership with the MSME Ministry to showcase success stories of SMEs)