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July 2015

foreword

Hi Readers, During the last week of June, addressing the ‘Perspectives’ conference organised by AQR Asset Management Institute at the LBS campus on the subject of ‘The Central Banker Perspective’, RBI governor Raghuram Rajan warned central banks across the world against easing of competitive monetary policy, and define new rules as the chances of global economy slipping into the same problems to the Great Depression of the 1930s are at large. A week later, we witnessed Eurozone going down, almost in the verge of a collapse with the current Greek financial crisis, finally managing to strike a deal with a bailout package. Still the effective implementation and results are yet to be known. The news is not encouraging, globally and specially for our exporters, but weakening of Euro can help import oriented economies like India. We had the opportunity to go through a global survey report done by Oxford Economics on “SMEs are ready to compete” and some of the major findings are: SMEs are focusing on cost reduction and mobile driven customer service, transformation & innovation a key concern, penetrating new geographic markets and vendor supplier partnership to gain foothold. There are other concerns like finding talents, increased competition from larger companies in the Asia Pacific Region, but the manufacturing in the region is expected to grow from 71% to 79% in the next three years. Some of the trends show that SMEs are moving towards tech-based infrastructure, Cloud Computing, Big Data and Mobile Technologies. Strengthening of SMEs in manufacturing will enhance the growth of the Indian economy reducing the trade deficit, and indigenous manufacturing will get a boost. With PM’s Signature project Make in India, we are marching towards realization of a stronger manufacturing economy in the world. So much is discussed within the last one year about the pros and cons of Make in India, and the positive outcome of this entire exercise is that we as a nation and globally, are talking about Make in India. The credit goes to PM Modi, from whom the country has large expectations, which can only be realized from the entire mechanism working along with his goals. Entering into the twelve year of its publication, MART is coming up with a review of the impact of “MAKE IN INDIA” created in the last one year, and where we stand on “Ease of Doing Business” in our country. From this issue our readers can feel the rhythm of Indian manufacturing, and thanks to the industry leaders who contributed their experience on our short call, making this issue a success. We, MARTIANS thank our readers, advertisers, columnists and editorial contributors for allowing us to be part of the industry. We are committed to bring you the BEST, and look forward to your suggestions and comments to make it PERFECT! Signing Off,

July 2015

Hari Shanker hari@martinfotech.in

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July 2015

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MAIN FEATURE

MART FEATURE 18

Access to capital and the cost of capital is the most significant challenge

Government must Facilitate Manufacturers to Innovate

Thousands already Made in India, Many are yet to Come!

Promote “Make in India” through Indian MSME

Strategic Investment irrespective of Short term Gains will be Profitable in Indian Market

The German companies in India are looking forward to the implementation of GST

Implementing Mechanisation will Fetch High Productivity Volume 12 Issue 1 July 2015 Annual Subscription `1200 Member INS

Editorial Advisory Board

A S Shetty Saravjit Singh Manoj Kabre Kabre P S Satish J R Mahajan LD Bhakre

MediaMart Infotech

Siji Nair

Sandeep Hingne

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Edited, Printed, Published and Owned by Hari Shanker A G and Printed by him at Orange Printers Private Limited, Plot No: 53, Vattiyoorkavu, Thiruvanthapuram- 695013. Industrial Business Mart is a monthly journal published from Thiruvananthapuram.

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COLUMNS

CONTENTS

With ‘Make in India’, India may witness more Indigenous Manufacturing

‘LED-ing’ the way for ‘Make in India’

Need for Global Competitiveness in the Indian Manufacturing Industry

Challenges of Make in India and the Advantage

Indians Aspire to Make it Big

Use Less Paper - Save our Environment!

100

Present like a Leader

128

Business Effectiveness using Big Data Analytics

130

134 144

MART UPDATE THE LAST LEAF

Managing Editor Hari Shanker hari@martinfotech.in Associate Editor Hiya Chakrabarti hiya@ martinfotech.in Editorial Assistant Riti Banerjee riti@martinfotech.in Creative Assistant

Sayan Chaudhuri Arnab Chowdhury martcreative@gmail.com Circulation & Subscription Knowledge Partner Devjeet Biswas devjeet@martinfotech.in +91 9038005670

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Priya Kundu +91 98301 22946 priya@Martinfotech.in Marketing Bangalore Chennai Delhi Mumbai

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IDA Veli, Titanium Post, Thiruvananthapuram- 695021 and Published from”Tharangam”, TC 37/2029, Kodunganoor Post. . Views and opinions expressed in the journal are not necessarily those of the Publishers. RNI No: KARENG/2004/13614

ort has been made to ensure the accuracy of the information published in this edition, neither the Publisher no any of its July 2015

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July 2015

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MAIN FEATURE

India- Destination Manufacturing: A Manifested Choice In August 2014, within months of taking charge, the Modi Government had allowed 100% FDI through the automatic route in medical devices and railways infrastructure, and eased norms for the construction sector. The FDI cap on insurance was raised to 49% from 26%. In the defence sector, 26% FDI was allowed in the automatic route, 49% subject to Government approvals, and beyond with the approval of the CCS (Cabinet Committee on Security). While some leaders feel that it seems to be a mission to attract large global MNC to start manufacturing in India, others feel that we have to wait some more time to witness definite impacts of this campaign.

Riti Banerjee riti@Martinfotech.in

On the occasion of India’s 68th Independence Day, our Honourable Prime Minister, Shri Narendra Modi, addressed the nation from the ramparts of the Red Fort in an hour-long speech. The intention was clear – India needs to rejuvenate its manufacturing sector, which has been in sharp decline over the decades, to transform its economy and hasten the pace of job creation. While he addressed many other topics and talked about equality, business, poverty and many other prevalent social issues, he also focused on the issue of the need of manufacturing in India and increasing the share of manufacturing to 25 per cent of GDP by 2022 from 16 per cent currently. To quote Shri Narendra Modi, “Come, make in India, Come, manufacture in India. Sell in any country of

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the world but manufacture here. We have got skill, talent, discipline, and determination to do something. We want to give the world an favourable opportunity that come here, Come, Make in India and we will say to the world, from electrical to electronics, Come, Make in India, from automobiles to agro value addition Come, Make in India, paper or plastic, Come, Make in India, satellite or submarine, Come, Make in India. Our country is powerful. Come, I am giving you an invitation.” While almost ten months have passed since the Independence Day speech had raised a lot of hope, MART attempts to reach out to the Industry leaders and take their point of view on the same, i.e. find out how much this mission has actually reached out to the industries and what the leaders feel about

the same. In August 2014, within months of taking charge, the Modi Government had allowed 100% FDI through the automatic route in medical devices and railways infrastructure, and eased norms for the construction sector. The FDI cap on insurance was raised to 49% from 26%. In the defence sector, 26% FDI was allowed in the automatic route, 49% subject to Government approvals, and beyond with the approval of the CCS (Cabinet Committee on Security). While some leaders feel that it seems to be a mission to attract large global MNC to start manufacturing in India, others feel that we have to wait some more time to witness definite impacts of this campaign. Mr. G. K. Sudhakaran, Heat Process Instruments,

comments, “In the last 27 years of our manufacturing, no Government support is received so far. For a SME, it is the ability of the entrepreneur to make the business successful. Though we are registered under MSME Act, as a micro unit for the last seven years, we still do not get any support.” The main focus however has been on education for most of the industry leaders, i.e., to bring about a change, we first need to educate the youth (that has been pointed out by our PM to be the majority of our population) and form a base of skilled manpower. This is essential because, without proper training, the availability of cheap labour in our country is vain. Also, India has to be better prepared and motivated to do world class R&D. The Government must ensure that it provides platform for such

July 2015

While the ‘lion’, the symbol of ‘Make in India’ could be seen all over Hannover, the Indian pavilion was enthused and people greeted the Prime Minister with the chant of ‘Modi-Modi’ and ‘Bharat Mata Ki Jai’ when he prepared to deliver his speech.

research and development. Moreover, the industry leaders have also pointed out that to transform the myth of “Ease of Doing Business in India” into reality, the Government official structure, including tax departments, water departments and the like, should become transparent and less complicated. A study undertaken by the World Bank on ‘Ease of doing Business’ showed India sits at the bottom of the pile at Rank 142. Significant change

would be required both in policy conceptualization and implementation to support manufacturing growth. Governments at both the centre and the states need to step up their efforts, going forward. This would involve clear industry-specific policy guidelines aligned the needs of each sector. Mr. Dinesh Kumar Gupta, Proprietor of Countronics, observes, “The positive points of Making in India include the availability of cheap raw materials.

Currently India is not the easiest place to do business. There is a certain lack of transparency in every aspect, be it paper work, rules, regulations etc. The more we make things transparent and clear the easier it will be for businesses to find India a conducive environment to work in.

Every six months the salary goes up. The only advantage in this perspective is the ready market. It would be better if the inflation is checked, the salaries held and the labour laws revised” Another interesting feature is Modi’s ‘5P’ formula which is defined as – Perspective, Profile, Policy, Projects, People – which, together would create a new scaffolding on which the future of manufacturing in India can be built.

”Predictability of throughput and quality are fundamental drivers expanding one’s market. Any foreign investment is only relevant if it benefits India to develop its human capital, infrastructure and industry. Transparent tax structures and increased certification bodies are a couple of steps we would suggest for the promotion of manufacturing”. Asim Behera COO, Daifuku India Pvt Ltd

July 2015

Also, the direct contact with the customers leads to customised products and better satisfaction of the customers. Moreover, with the growth of the delivery systems like courier services, communication has become much improved and adds to the positivity of business in India. On the other hand, the negative circumstances for business in India include the rising cost of electricity, water, sewage, oil etc. and the labour getting expensive.

Vinay Nathan CEO, Altizon System

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The R & D prospects must also be improved and in order to foster the overall growth of the manufacturing unit. Mr. Asim Behera, COO, of Daifuku India Pvt. Ltd. observes, “If Make in India reaches its full potential, of course India will become a choice destination for manufacturing. But to ensure the campaign reaches its full potential we need to a lot of things such as A) Improve the tax scenario, make India more attractive for investors by doing away with the convoluted and complex system. B) Invest heavily and improve the transport infrastructure. C) Improve the warehousing sector. D) Provide uninterrupted power. Essentially the more business friendly we make India the more we have a chance of becoming a global manufacturing hub. Currently India is not the easiest place to do business. There is a certain lack of transparency in every aspect, be it paper work, rules, regulations etc. The more we

make things transparent and clearer the easier it will be for businesses to find India a conducive environment to work in.” The industrial fair at Hannover seems to be all about Germany and the partner nation this year — India. Prime Minister Narendra Modi and German Chancellor Angela Merkel visited various pavilions set up by 14 Indian states and by German and Indian companies. While the ‘lion’, the symbol of ‘Make in India’ could be seen all over Hannover starting from the airport, the Indian pavilion was enthused and people greeted the Prime Minister with the chant of ‘Modi-Modi’ and ‘Bharat Mata Ki Jai’. India Inc was also present in significant numbers at the mess. An environment of enthusiasm, promising exchange of ideas and investment in the new resurgent India prevailed at the India Pavilion that was crafted to portray the economic

“In the last 27 years of our manufacturing, no Government support is received so far. For a SME, it is the ability of the entrepreneur to make the business successful. Though we are registered under MSME Act, as a micro unit for the last seven years, we still do not get any support.” G K Sudhakaran CEO, Heat Process Instruments

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potential of the country’s most fertile sectors-biotechnology, renewable energy, space, IT & BPM, industrial corridors and smart cities, wellness, and the demographic dividend it aims to reap. A positive revivalist fervor prevailed as senior Indian government officials and business leaders reached out to representatives of German and European industries. While developing on the relationship India shares with Germany and inviting them for making in India, Modi also states, “We are removing unnecessary regulations and simplifying our procedures. We are using digital technology to eliminate multiple approvals and endless wait. We will guide you and walk with you in your projects. We have set up Invest India and country desks in it that will be networked to the states. We will nurture innovation and protect your intellectual property. There were institutions in India that seemed beyond scrutiny. Well, they no longer are. We

are reforming institutions in ways that has not happened in decades. We are building a tax regime that is predictable, stable and competitive. We will now address the remaining uncertainties. The Goods and Services Tax is a long needed revolution that is becoming a reality.”Mr. Vinay Nathan, CEO, Altizon System, also comments on this, saying, ”Predictability of throughput and quality are fundamental drivers expanding one’s market. Any foreign investment is only relevant if it benefits India to develop its human capital, infrastructure and industry. Transparent tax structures and increased certification bodies are a couple of steps we would suggest for the promotion of manufacturing.” Thus, we venture out to get a detailed scenario of the companies in India, as well as the foreign companies investing in India, and get to know from the industry leaders what they think is necessary for this mission to be successful.

I believe, make in India mission is a revolutionary decision by this government. Also, the efforts being made by Honourable Prime Minister to bring foreign investments are remarkable. I am sure,India will make progress in all fields in very short span & become most attracted investment place & manufacturing hub for rest of the world. Ravindra Kondekar Managing Director, K C Precision

July 2015

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Access to capital and the cost of capital is the most significant challenge

Vinnie Mehta Director General, ACMA Mr. Vinnie Mehta, Director General, ACMA is an Electrical Engineer from IIT-BHU, an MBA from FMS, University of Delhi and a Masters in International Trade from the Indian Institute of Foreign Trade (IIFT). He has been actively involved in promotion, growth and development of the auto component industry in India. Prior to joining ACMA, he headed the Manufacturers’ Association for Information Technology (MAIT), the apex body of the IT hardware Industry in India. In conversation with MART, he points out that the Indian component manufacturing industry is globally competitive. What brings us down is the poor infrastructure and complicated procedures including those for taxation. This needs immediate attention and I am glad that the government recognises this as a priority area for intervention.

What do you think is the impact of Make in India on the Indian Automotive Component Industry? It is a welcome step by the Hon’ble Prime Minister of India who has invigorated the domestic manufacturing industry by launching the ‘Make in India’ campaign – a drive that encompasses a gamut of initiatives to promote investments and growth in Indian manufacturing. This has certainly brought in much needed focus and impetus for reforms related to the

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manufacturing sector. While the auto component industry is a success story of manufacturing in India as also catering to the world market, the campaign in many ways vindicates our stand that given a conducive environment, India could emerge as the global hub of automotive manufacturing. Further, there has also been a turnaround not only in the business sentiment but also in the performance of the auto component sector. After witnessing a 2% reduction in

total turnover during 2013-14, the industry bounced back impressively and recorded an 11% growth in total turnover during 2014-15. What is the current scenario of Indian Automotive Component Industry? Despite a challenging year, the auto component industry managed to rise above the choppy waters. It registered a turnover of Rs. 2.34 lakh crore (USD 38.5 billion) for the period April 2014 to March 2015, with growth of 11% over the

previous year and a CAGR of 11 percent over the last six years. This data represents the entire supply from the auto component industry in India to the on-road and off-road vehicle manufacturers and the aftermarket in India as well as overseas. The data also includes that of captive suppliers to the OEMs and the unorganized & smaller players. The industry witnessed consistent growth in exports as well, an indication of the growing credibility of India made auto components.

July 2015

Exports surged by 11.4 percent to Rs 68,500 crore (USD 11.2 billion) from Rs 61,400 crore (USD 10.2 billion) in 2014-15, registering a CAGR of 29 percent in the last six years. Europe accounted for 36.9 percent of exports followed by Asia at 25.2 percent and North America at 23.2 percent. Exports to Africa, Latin America and North America increased by 12.6 percent, 4.6 percent and 18.9 percent respectively, over the previous fiscal. The key export items included engine parts, transmission parts, brake system & components, body parts, exhaust systems, turbochargers etc. Is the focus on Import substitution or Export promotion? Both. I must give credit to the vehicle manufactures whose increased focus on localisation has led to the creation of a significant componentmanufacturing base in India.It is indeed of concern that as an industry we are a net importer. Our imports stood at USD 13.5 billion in 2014-15 while the exports were USD 11.2 billion. However, it is somewhat reassuring that the CAGR of Exports over the last six years stands at 29 percent while that of imports is 18 percent. On the exports front, our performance has been quite satisfactory. Indian auto components are exported to more than 160 countries and account for 11 percent of overall auto component industry’s turnover. As an industry we have envisioned a three-fold jump in the turnover of the sector by 2020, to touch USD 100 billion, mainly driven by focus on

July 2015

high-quality products and costcompetitive manufacturing. We expect exports to be in the range of USD 35-40 billion. Moreover, a significant number of tariff-lines of auto components have been benefitted under the new policy compared to the earlier. How far has PM’s definition of FDI, “First Develop in India”, reached out to the Manufacturing Sector? How can India compete with the global Engineering market? The ‘Make in India’ campaign has not only enthused the manufacturing industry but has also been able reinstate investors’ confidence in India. That apart, several of the leading global automotive players have declared deepening of their engagement with India and making it their manufacturing hub, which is indeed very encouraging. We are confident that the reform agenda of the Government will lead to key positive results and create growth opportunities for the industry. Having said that, I think, given all things equal, the Indian component manufacturing industry is globally competitive. What brings us down is the poor infrastructure and complicated procedures including those for taxation. This needs immediate attention and I am glad that the government recognises this as a priority area for intervention. What are the steps ACMA is taking to promote manufacturing in India? Majority of the smaller players in the auto component industry are tier-2s and tier-3s and are unfortunately the weakest link in the automotive value chain.

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ACMA has been focussing attention to enhance skills of such companiesin quality, production, manpower management, skill up-gradation and others, so that they can support their tier-1s better. In this direction, the ACMA Centre for Technology, a technical wing of ACMA,has put significant efforts to guide ACMA members to adopt global best practices and bring about greater consciousness towards world-class quality. Today out of 700 ACMA members, 632 have ISO9000 certification, 530 have TS16949 certification, 18 have QS9000 certification, 273 have ISO14001 certification, 154 have OHSAS18001 certification and 14 have won the coveted Deming Prize. Further, ACT has facilitated over 450 plants in the component sector achieve best-in-class operations through cluster programs viz. ACT SME Cluster, ACT Foundation Cluster, ACT Advance Cluster, ACT Engineering Cluster and ACT

New Product Development Cluster. Going forward, we envision of making India into a global automotive manufacturing hub because of our inherent strengths of frugal engineering skills, cost advantage and quality benefits that India can provide to the rest of the world. What are the hurdles and challenges your members face doing business in India? The auto component industry is largely dominated by small & medium enterprises. Access to capital and the cost of capital is probably the single most significant challenge confronting the industry today. In addition some of the automotive hubs are power deficit which forces the industry to resort to rely on diesel-generated power, which is significantly higher than that of the grid, this make us non-competitive despite our inherent manufacturing

strengths. Smaller companies have limitations in terms of capacity and access to technology. Further, attracting and retaining talent is another issue that needs to be addressed. Lastly, multiplicity and cascading impact of taxes also adversely impacts our price competitiveness but I’m hopeful that introduction of GST will help resolve this issue. Which are the simple steps the Government can initiate to ease the difficulties? I would say, a good beginning has already been made. It is indeed heartening that the Government recognises the potential of the automotive sector and is keen to ensure its success. The Government together with the industry is making a roadmap for the industry until 2026 under the Automotive Mission Plan, this will delineate many actionables for all stakeholders. Besides, there are several areas where

Government intervention is being sought, some of the key recommendations from ACMA include: • Addressing the cost of capital in India, which is the highest among the emerging markets • Technology Up-gradation scheme for the components sector • Pushing for trade agreements which are beneficial to the component exports with countries such as Brazil, South Africa, Iran etc. as also addressing inverted duty structure and challenges arising out of existing Trade Agreements • Fast introduction of GST and removal of procedural hurdles for ease of doing business. The Government needs to make the policies favourable so that the Indian manufacturers can explore newer markets and create trade links with countries that have similar consumption pattern as ours.

Despite a challenging year, the auto component industry managed to rise above the choppy waters. The graphs shows the Details of the FY 2010-2015.

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July 2015

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Government must Facilitate Manufacturers to Innovate

Andreas Zeiger Managing Director, EMAG India

Mr. Andreas Zeiger has attained Techno Commercial Education and has more than 20 years of international experience in sales, project management and general management. Has worked since 2002 in general management positions in India for Manufacturing and Automotive Industries. He is presently traveling the world to manage the EMAG subsidiary in India to execute and coordinate internationally their machine projects for Indian OEMâ&#x20AC;&#x2122;s. While being interviewed by team MART, he comments that the education system should already focus on practical experience and that the young generation needs more freedom to try out various things in school and in their first jobs.

The prospect of Make in India. With my experience of 12 years living in India and during the last 2 years traveling between India and Europe, I feel myself half Indian and thus I was of course effected by the enthusiasm of the start of the Modi Government. The slogan â&#x20AC;&#x153;Make in Indiaâ&#x20AC;? is pleasing us as Indian subsidiary of a big machine builder. After one year now the ground reality has shown, that the change in rules and regulations and reforms are a huge job in a

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big country like India and for sure will take some more time. The marketing effort by the new Government showed immediate effect and was recognized. Here I could see the reputation of India in Europerising and it brought back the focus of the investors and purchase managers and that helped me to generate more interest for our business here in India. That started from colleagues who showed suddenly more interest in food, sights and people and indicated thoughts of visiting India up to

the management of the holding, who discussed the impact on the strategic targets. Maybe the expectation rose too high and the development and changes in the following month was not so dramatic but India is back in the worldfocus. Would you look at manufacturing in India? Indeed the focus and the efforts of Mr. Modi to strengthen the industrial development are playing in our cards and are in line with the products we offer. EMAG is a high-end

machine builder with a wide range of technologies in the manufacturing process starting from turning, over grinding and hobbing, till to future technologies like hardening, laser welding or electrochemical manufacturing can support that development. We deliver machines which are process oriented, highly automated and sturdy enough to achieve highest quality. And we see that these characteristics are sought for by Indian manufacturers focusing on indigenization

July 2015

A clear increasing focus from our view is the demand for automation of the production process driven by the growing labor cost or the impact on quality by manual operation. And here is our strength. EMAG invented the vertical pick up machine concept, which allows fast production with integrated automation and inline measurement and allows thus quality process.

as well as on international export business. A clear increasing focus from our view is the demand for automation of the production process driven by the growing labor cost or the impact on quality by manual operation. And here is our strength. EMAG invented the vertical pick up machine concept, which allows fast production with integrated automation and inline measurement and allows thus quality process. And that demand is growing driven by the stringent regulations in the aviation industry or the automobile sector. We also see that the business leaders do consider the whole cost of operation and thus investment is one decision factor but falling behind the total cost per piece consideration. To answer the question if we shift production to India, I can say that we started like all industries, to find options to reduce the import cost. At the moment we build up a local assembly leveraging the different global locations and their strengths to assemble and customize high end, affordable machines in India.

July 2015

Is the focus on Import substitution or Export promotion? Focus is at the moment to substitute import. In the last years we developed a smart modular machine concept to allow our clients to put together different modular machines, each with an individual automation, to allow a simple and very flexible combination to design customized different lines concept. You have to think of the famous Lego toy. These are high quality machines and the customer should get here an affordable solution. Even if we combine all benefits of our global manufacturing locations the import duty is a challenge in the calculation and here we act. What are the steps that the Government should take to promote manufacturing in India? First done steps, like simplifying the establishment of new companies should be supported by efforts to help existing companies to focus on their core competencies. If

the Government understands itself as service provider, it should focus on supporting the companies to concentrate on their business and innovation. Simplifying the statutory requirements, tax regulations, infrastructure and all the known aspects are discussed widely. Knowing that there is a good amount of creativity in the world to misuse systems; control mechanisms should not lead to blown up paperwork or overregulation. A simple self-controlling tax system for instance can help instead of endless amendments. A combined auditing system with other statutory requirements could also reduce the effort in that corner. And I would consider for small scale industries a simplified tax and statutory process so that the startup spirit of young entrepreneurs is not broken down. Having mentioned that I see in the education system another big potential, here the teaching should come away from pure repetition of knowledge and focus on marks to a more practical orientation with freedom to explore opportunities and chances. Entrepreneurial spirit I would

say should be the focus and that requires a wide practical knowledge and training under more real market conditions. What are your suggestions for better productivity? Reducing hierarchy in addition to empowerment of the operation level together with well-set procedures, which are developed with the combined knowledge of an organization and under permanent improvement, is a short formula I tried to implement in all my operations with successful progress. Together with a healthy team spirit and a clear task for the organization the surrounding for an efficient operation is set. On the operation side I believe within a clean organized environment with sharp, fitting tools you can produce efficiently and achieve quality. Translated in the manufacturing industry I mean that well though optimal process of your production should be developed, later the clean process should be implemented and at the end the right tools up to efficient machines should be selected and be maintained. The most

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important part after that is to develop the people to know the latest production possibilities and train them to use the tools provided up to the max. Interdisciplinary understanding and knowledge helps to have a fast communication and customer focus.

to try out various things in school and in their first jobs. Imagine the work environment of Google or Apple and the freedom the employees have. For sure, an extreme is not necessarily adaptable for all industries, but to illustrate the thought.

How can India compete with the global Engineering market?

Challenges faced while dealing with the Government authorities and how they can be eased.

The size of the available resource is for sure interesting for a lot of international companies. That attracts tasks from all over the world. The English language, sometimes considered as negative remaining from the past, and with that the cultural understanding of the other parts of the world is a big supporting factor compared to other Asian states. But that attracts mainly manpower intensive engineering tasks, not necessarily innovative tasks. Creativity is to combine existing things to something new. Here again I see that the education system should already focus on practical experience and that the young generation need more freedom

You need a good team of advisors and internal manpower to satisfy all departments, resources which need to be added in the calculation of the product price. Simplification has an immediate effect and will help to stay focused on the core business. Online filing, VAT tax system are first steps showing that the government is understanding the need and is trying to support. Transfer pricing, SVB and others are still effort intensive India specific topics, where the main target of that topics is not in line with the focus in creating business. The pure number of different departments gives also room for simplification.

What is your take on our Prime Minister’s urge not to see India as only a market but to see every Indian’s potential? Although as an Indian subsidiary I am focusing on the Indian market I promote internally the possibilities of India, of course in comparison with worldwide other options. And here India needs to achieve international competitiveness instead of protecting the local market. On the other side we support our clients with know-how to strengthen their global position and release the potential of India. This starts from introduction of various technologies or processes and goes up to a joint approach with our clients to go to their potential international customers to show a joint responsibility to deliver high quality products and processes. That is also one of the beautiful aspects of my work in India, to have young worldwide interested people, eager to learn, discussing with you and keeping you awake and developing with challenging questions, this I enjoy from my own team as well as from my partners and clients.

Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? At the moment know-how can be brought in from international companies. That should be supported to achieve fast inputs. Protectionism, very much visible in the discussion of foreign retail presence, I consider as not supportive, it is in my eyes only a hindrance on necessary innovations or development of efficiency. On the other side I strongly believe that an industry with a strong SME sector is a healthy business concept, which is flexible, innovative, interested in India first and less prone on economic cycles. As a German, I see that our economy is carried by the SME sector and that these family driven companies have combined the drive for economic growth with the understanding of the responsibility for their employees and their society. And some of that SME have grown big and are successful also in India, here I name Bosch or also my own company EMAG is family driven.

The slogan “Make in India” is pleasing the German companies as the Indian subsidiary of a big machine builder.

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July 2015

How far has “First Develop in India” by our PM, reached out to the Manufacturing Sector? “First develop in India” has some potential because India is a challenging market and it opens up the old thinking that the export is the only successful way. Combining the resources of design and production in India to develop new products and services fitting to India first has, for sure, a good potential in other developing markets, because it meets a demand which is in the developed, saturated and overdesigned world not 100% understood. On the other side the first statement is a bit against my global mind set and should not be misused for bad nationalistic developments.

July 2015

We have one beautiful planet, limited resources and too many conflicts about quite irrelevant topics. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? This is indeed a big potential and responsibility, as mentioned earlier, for the education system. Also the generation change and the difference between urban and rural India is what comes to my mind. This demographic diagram at the moment shows also two other aspects- can the growth continue and this

is a challenge for the economy and the resources (like food or water) and on the other side if the growth will come down it will lead a huge elder population to the end of that generation. But that are demographic topics. My point is to develop the young generation, give them freedom to grow on their own, open up their mind for the global challenges that they will face in the future. One negative point I have observed over the last couple of years is a value shift to make fast money instead of focusing on development personally or for the society. In job interviews it becomes very clear that job jumping to increase short term monetary situation is the focus instead of personal development

and experience. May be my personal background leads to another expectation. The steps Government should take to develop entrepreneur skills in young engineers from the academic level. In school and in their first jobs the young generation should have chances to explore the challenges of an entrepreneurial environment. Government and corporates can support by creating awards and promoting best practices. For sure we see a lot of e commerce startups, but investment related to industries is a bit difficult and here, some support programs can ignite a successful startup.

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With ‘Make in India’, India may witness more Indigenous Manufacturing

Mr.Adesh Gupta CEO, Liberty Shoes Mr. Adesh Gupta took over as the Chief Executive Officer of the Liberty Group in 2004. Born in Karnal, Haryana, Mr. Gupta completed his B.Sc Engineering (Mechanical) with Honours and a specialization in Polyurethane Technology for Footwear Applications from Italy / Germany. He has spent a year each in Hungary during 1980-81 & Italy in 1982-83 for his technical training in Polyurethanes. He had spent time across the world closely studying the industry and assimilating several best practices. In his professional career, he has achieved a lot of awards and recognition. He is presently also the Chairman of CII National Committee on footwear and leather products (2014-15 & 2015-16). On being asked about the ease of doing business in India, he said Modi’s approach towards manufacturing is transformational and India can sure reach heights in this industry in the coming years. Need is to facilitate the Govt. Policies. Excerpts:

The prospect of Make in India. India is a young country and needs to provide gainful employment to its young population. Further beyond this expedient objective lies the ambition of upgrading the economy from its present low base share of 15% GDP to 25% by 2022.This ambition is to be fulfilled by focusing on 25 sectors. Making companies stronger locally, promoting tie-ups and collaboration as well

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as inviting global manufacturers to set up base in the country are the steps in the right direction. I am confident that with proper execution this would be a game changer for India. Would you look at expanding the products you manufacture locally? The Prime Minister, Mr. Modi’s ‘5P’ approach to manufacturing has been transformational for the sector, specifically, and the Indian economy as a whole”.

Let me elaborate on the ‘5P’ formula which is defined as – Perspective, Profile, Policy, Projects, People – which, together would create a new scaffolding on which the future of manufacturing in India is being built. The architectural vision is a long-term one by design and the ‘Make in India’ campaign is central to this new edifice. The long-term vision for Indian manufacturing that is being rolled out will play a key role in Indian industry being

a critical part of global supply chains. Is the focus on Import substitution or Export promotion? Answer to this can’t be simple of choosing one over the other. The truth lies somewhere in between. It would depend on the level of value addition each of these strategies can bring. If in certain categories we have excess capacities and are able to cater to global demand

July 2015

Prespective Projects Profile

Modi’s ‘5P’ Approach to Manufacturing

People Policy

The ‘5P’ formula would create a new scaffolding on which the future of manufacturing in India is being built.

then new markets needs to be tapped, auto component is a potential example of this opportunity. While strategies to be put in place to invite local manufacturers to participate in products normally imported into the country. Allowing PPP in defense procurement is a step in this direction. For import substitution would call for better R&D stronger linkages with global supply chains. A significant number of companies as diversified from mining to aerospace have already initiated Research & Knowledge Processing outsource in our country. More incentive and deeper engagement would lead to better products leading to import substitution. Our Strives in the generic pharmaceuticals can be step in this direction. What are the steps that the Government should take to promote manufacturing in India? India is a manufacturing hub and has huge potential and resources. I believe by streamlining investment approvals, facilitation of land acquisition process,

July 2015

creating appropriate labour development ecosystem, efficient and effective enforcement of laws and creation of clear exit guidelines are major policy initiatives required to give a boost to the manufacturing sector. A further thrust on stable and predictable taxation system would go long way. Suggestions for better productivity. Three specific suggestions for better productivity are Scope, Scale and Skill. How can India compete with the global Engineering Market? As mentioned earlier we need to leverage our strength in the emerging specific areas. I am glad to note that Lockheed Martin has outsourced designing of tail fin of their super heavy cargo plane to their facility in Hyderabad. Examples are bound of such opportunities. It is important to select a right category and lay a medium term blue print for our potential in these sectors. Problems faced while dealing with the Government authorities and how they can

be eased. I believe that some of the challenges that are currently faced by the industry are invasion of low quality cheaper products from China and other FTA partner, issues related ease of doing business namely cumbersome investment approvals and clearance mechanism. More emphasis is required in upgrading the skill sets. While National Skill Development Center is a laudable institution, it needs to spread further. Industry also needs to partner with Government better to make this initiative successful. Taking the agenda forward, the Government has set up a new Ministry of Skill Development & Entrepreneurship to coordinate over 70 skill development schemes run by more than 20 Ministries/ Departments. The coming together of industry bodies to form Sector Skill Councils (SSC) and develop National Occupational Standards (NOS) is a big achievement. The Skill Development Initiative has also been aligned to the 25 Sectors of ‘Make in India’ with Sector Specific Skill Councils.

With all these initiatives set into motion going forward, we will see manufacturing sector playing a crucial role for India to achieve its goal of employment generation and realizing the vision of Make in India of achieving the overall manufacturing share to 25 per cent by 2022. Do subsidies reach the industry? Not to extent it is desired, while it would be difficult to have a uniform stance. Some sectors are better placed namely ICTE over Textile where the reach of subsidy and delivery mechanism is better. What is your take on our Prime Minister’s urge not to see India as only a market but to see every Indian’s potential? India is a unique country. We have most of the raw materials, abundant workforce and strong demand. While productivity is an issue in some sectors, it is definitely not an insurmountable problem. We at CII, have taken quite some initiatives through our Centers of Excellence to improve the competiveness of Indian Industry. This is been addressed

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through adoption of better standards, processes and establishing stronger linkages with global institution which are leaders in their respective field. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? SME are the heart of Indian industry. So they have to be central to any initiative being undertaken. However foreign majors can definitely play a role in bringing better products, process, systems which can strengthen their manufacturing. CII has been in the forefront of creating platform of ideas and being the starting point for a number of long term partnerships. How far has â&#x20AC;&#x153;First Develop in Indiaâ&#x20AC;? by our PM, reached out to the Manufacturing Sector? The message that is given to companies is that when they

come and invest in India, these companies create jobs, which in turn leads to greater purchasing power of the people and this translates into higher demand for goods and services offered by those same companies. This is plain and simple economics and a virtuous cycle of growth and development where both investors and consumers in India benefit. I think that given the huge domestic market that is on offer in India, any global firm that wants to pursue a high growth path will have to have a base here. From day one, the new Government has been in action mode and we have seen a string of measures announced to bring improvement in the business ecosystem. Steps have been taken to speed up decision making, restore credibility ofGovernment institutions and put in place a framework of progressive and stable policies. The Government has also acknowledged that it is willing to take a relook at

some of areas such as labour and land and arrive at a more balanced solution that caters to the needs of those affected, as well as does not impinge on the competitiveness of Indian industry. We welcome these measures as these are directed towards laying the ground for economic repair and subsequent move to a higher growth trajectory. We are extremely confident that the Indian economy would see a turnaround As pointed out by our PM, in employing the youth of India that consists of about 65% of Indians, what kind of growth is possible in the manufacturing sector in the next 20 years? The new Government has demonstrated its strong commitment towards reviving manufacturing sector. Since the last one year, we have witnessed a slew of measures taken towards easing the regulatory environment, removing critical constraints

holding up use of natural resources and launching fresh initiatives like Make in India and Digital India, Skill India. The Make in India campaign has already identified 25 key sectors. Going forward we expect that with improved operating environment for setting up manufacturing supported by availability of quality labour and infrastructure would support the growth of manufacturing in different sectors. For instance, India has an advantage of having surplus labour and has inherent strengths in various raw materials. Going forward the industries that best leverage this surplus labour and availability of raw materials is likely to be significant beneficiaries. Also, with the tweaking of the regulations several sectors where India has robust demand will see a lot of indigenous manufacturing happening viz Electronics, Defense, Aerospace etc.

With the tweaking of the regulations, several sectors where India has robust demand will see a lot of indigenous manufacturing happening viz Electronics, Defense, Aerospace etc.

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July 2015

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‘LED-ing’ the way for ‘Make in India’

VP Mahendru Chairman, EON Electric Mr. V P Mahendru, a graduate from Delhi University, is a dynamic and energetic personality well known in the business and social circles. He has been the President of Indian Electrical & Electronics Manufacturers Association (IEEMA) for the year 2001-02; President of Rotary Club Jalandhar; President of Northern India Switchgear Manufacturers Association (NISMA); President of Federation of Engineering Industries of India (FEII) and others. He is also member of the Governing Body of the Bureau of Indian Standards (BIS/ISI) contributing to the strategic policies for formulation and implementation of Indian Standards for various electrical and electronic equipment. He is an executive member of various policy-making bodies of Government of India, including the Central Consumer Protection Council of India, National Productivity Council, etc. In 1958, he promoted Eon Electric Limited for manufacturing and marketing Electrical Distribution and Safety Equipment. On ‘Make in India’, he pointed out the need for R&D in India to compete with those cheap products of China. He writes-

Since its inception last year by the NDA Government, the ‘Make in India’ programme has been in the news quite often. The global reverberations of ‘Make in India’ were felt when the Chinese decided to launch their ‘Made in China’ campaign, which showed they were not taking the prospective threat of faster industrial growth in India lightly, despite being a

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global manufacturing hub for the past two decades. Along with its high-decibel campaign, China announced a raft of tax concessions to counter Prime Minister Narendra Modi’s ‘Make in India’ pitch. Given China’s manufacturing head-start, India can only hope to steal a march over the more nimble dragon by

surpassing the incentives and benefits offered by its northern neighbour to manufacture indigenously. The case of LED lights can serve as a classic example in this regard. While Indian manufacturers have taken steps to manufacture LED Lights in India and also promote its exports, they have been pushed on the back foot by Chinese LED makers, who

receive immense incentives and support from their Government. Incentivize Innovation Accordingly, the Government needs to incentivize domestic LED manufacturers to boost R&D efforts in India. This is imperative if Indian companies are to overcome the stiff

July 2015

Green labelling of these products will boost their brand value and encourage environmentally conscious customers to support such products in the interests of global sustainability.

challenge from cheap Chinese LED makers. Presently, due to minimal R&D work in India, Chinese products often superior and cheaper compared to those made in this country.

thrown away. That is how such Chinese products have gained global notoriety as the ‘useand-throw’ variety and yet such issues build in consumers mind and aversion to even good quality similar products in India.

More importantly, the authorities need to take measures against the cheap lighting products sold in the grey markets across India. It is impossible for domestic manufacturers to compete against the low prices of these products. Although these are mostly of substandard quality, they are eagerly lapped up by Indian consumers who are extremely price sensitive and sometimes overlook quality and performance standards.

Once consumers are made aware about the drawbacks of such cheap /sub-standard products, there will be more appreciation for ‘Made in India’ products, even if these cost somewhat more than cheap imports.

While promoting its ‘Make in India’ campaign, the Government should publicise the fact that its products are of better quality, compared to many of those made in China, which are of the ‘use and throw’ variety. With most Chinese items being cheaper, there is no assurance about how long they will last. Moreover, the moment such cheap products develop a problem, most cannot be repaired and simply have to be

July 2015

It is also important to ensure that all products made in India are as attractive and have an excellent finish like the high-value items manufactured overseas. Lack of looks and proper finish are some of the drawbacks that bedevil some India-made goods. Consequently, over the decades, the ‘Made in India’ label has not gained total confidence of the Indian consumers and sometimes acquires negative brand image. Quality Quotient and Green Labelling Yet, this drawback should not deter Indian manufacturers unduly. Recall how half a century ago Japan’s

manufacturers faced similar image problems about their products being sub-standard. But the Japanese worked hard on improving their quality quotient and the results are there for the world to see. Today, most products made in Japan are considered among the best worldwide. Names such as Sony and Toyota are still synonymous with great quality products, notwithstanding the problems of acceptance they may have faced in the past and now face issues of higher cost of manufacturing. Additionally, the ‘Make in India’ programme should focus on products made through sustainable processes that leave a low carbon trail and cause minimal damage to the environment. The publicity campaigns for such products should highlight the fact that these have been made via sustainable processes with low environmental impact. Green labelling of these products will boost their brand value and encourage environmentallyconscious customers to support such products in the interests of global sustainability.

The importance of green labelling and quality benchmarks cannot be underestimated in today’s world. Companies ignoring these issues do so at their own peril. Automotive companies across the globe have paid a heavy price for defective products that have led to massive recalls. Besides the logistics nightmare and tremendous monetary loss due to product recalls, the company’s brand image suffers damage too, which may take years, if not decades, to repair. Finally, whether it is LEDs or the manufacture of other products in India, ease of doing business in the country is still not a ground reality. Manufacturers need to negotiate a maze of approvals before they can begin manufacturing. It’s time the Government slashed the myriad sanctions required by implementing a single-window clearance system. If this single reform were undertaken, it would be another big boost to the ‘Make in India’ campaign. China’s status as a global manufacturing hub would then be truly under threat.

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Thousands already Made in India, Many are yet to Come!

Pierre Behnam President, Indo-French Chamber of Commerce and Industry Mr. Pierre Behnam operates as the Country Head – India Operations for Pierre Fabre, for the last 8 years. He began in 92 with a JV project in Goa, and then in 2003 as the CEO of the India Affiliate of Ethypharm, a French pharma company. Mr Behnam is the Vice-President at the Board of Foreign Trade Advisors of France (CCEF) and the President of the board of the Indo-French Chamber of Commerce and Industry since September 2014. He has received the French National Award of “Chevalier de l’Ordre National du Mérite” (Knight of the Order of Merit) in 2012 from the Foreign Affairs Minister of France. When interviewed by MART, he assures that IFCCI can provide a wide range of very useful services to help companies set up their business in both countries, help identify partners, provide due diligence reports, and accompany the installation with domiciliation services in one of its four offices in Mumbai, Delhi, Bangalore or Chennai, as well as support them to recruit the right personnel with French profiles or profiles of Indian nationals who studied in France or speak French.

The Prime Minister of India announced Make in India last year. What do you feel about the impact of this mission? French companies, who have already started to manufacture in India from several years, can only welcome this campaign. However, in order to accelerate this initiative, they have great

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expectations, especially in the facilitation of the procedures to enter the market and set up an entity, as well as the assurance of the long-term stability of the decisions and policies made by the Government. French companies are convinced of the necessity to come and invest on the Indian market,

but are delaying their decisions due to the difficulties faced. The “Make in India” campaign gives hope of India taking into account those challenges, and easing doing business and investing in India, and should hopefully encourage the still shy investors to decide to invest and set up in India. It is

yet too soon to see the fruits of this campaign, but I am confident that we will be able to witness the positive results of this campaign by this year. How many companies from France have shown their interest to invest in India after the announcement of this mission?

July 2015

The new economic relationship is based on the fact that more and more French companies are opening research centers in India, not only distribution centers or manufacturing units.

France already started the Make in India before the campaign itself and continues to grow in India in the same trend. More than 1000 French establishments (1051 to be precise including subsubsidiaries, branches, etc.) linked to approximately 400 main companies are present in India with their offices spread across the country. In addition there are about 180 independent French entrepreneurs with their offices in India. The “ETIs” (small sole proprietorship companies) and the “SMEs” (small and medium sized companies) have also expanded their presence, adding their share to French investments in India. We can mention here that the ongoing investments by French companies will be strengthened. Almost 30 new companies are setting operation in India every year and invest 1 billion Euros every year. For instance, Renault is reinforcing its plant in Chennai and has developed a new car

July 2015

model especially designed for the Indian market; and St. Gobain has inaugurated at the end of last year a new Float glass plant near Delhi. IFCCI has recently organized seminars leveraging IndoFrench partnership for a digital India. What are the steps to be taken to develop India’s digital potential? IFCCI has indeed organized recently a one-day conference in Mumbai on “Le Partenariat Digital: Levering the IndoFrench partnership for a Digital India”, where a number of French and Indian renowned speakers discussed at length about the potential of the Digital India campaign and the Smart Cities new initiative. However, it is important to note that the development of India’s digital potential is the prerogative of the Indian Government. French companies are already very much involved in Digital India and Smart cities, and they will

not only welcome all future initiatives in these sectors but will also definitely look forward to be associated with them. What are the areas of collaboration between India and France and how can the two countries transform their existing relationship? Collaborations between India and France are taking place in all areas. The new economic relationship is based on the fact that more and more French companies are opening research centers in India, not only distribution centers or manufacturing units. According to the current estimates, the 1051 French companies in India today employ around 300 000 people (240 000 in the year 2013), have a total turnover of more than 20 billion USD (18.5 billion USD in the year 2013) and have a minimum stock investment portfolio of 19 billion USD (17 billion USD in 2013). Tell us how your trade services

are facilitating the respective companies from both the countries. The Indo-French Chamber of Commerce & Industry (IFCCI) can support French and Indian companies in developing their business in India and France respectively. IFCCI provides a one-stop-shop for all trade services, from market study, identification of prospects, to the organization of programmes of B-to-B meetings for the French/ Indian companies in India/ France. It organizes every year delegations of companies to both countries. For instance, it accompanies delegations of Indian companies to MIDEST, the World’s Leading Industrial Subcontracting Show, in Paris every year in November, as well as to BATIMAT, the largest international building industry event, also based in Paris every other year in November. IFCCI can thus provide a wide range of very useful services to help companies set up their business in both countries,

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help identify partners, provide due diligence reports, and accompany the installation with domiciliation services in one of its four offices in Mumbai, Delhi, Bangalore or Chennai, as well as support them to recruit the right personnel with French profiles or profiles of Indian nationals who studied in France or speak French. IFCCI can also support companies in their business development through visa recommendation letters, and help in the French VAT Refund. Being in permanent contact with the French and Indian authorities, IFCCI can facilitate procedures with both these institutions. For any query related to developing their business in France, companies can definitely contact us. In which sector in India is the major investment from France taking place? French companies are present in all sectors in

India i.e. banking, insurance, software, engineering, hotels, automobile, and energy including non-conventional, urban infrastructures, consumer goods, and pharmaceuticals. Amongst 400 parent companies, 25% are engaged in the service industry. Within the remaining 75%, the sectors representing the biggest parts are pharmaceuticals & chemicals at 7%, aerospace at 5%, electronics at 4,5%, construction& mechanics at 4,5%, electrical components at 4,5%, and automobile at 4,5%. What are the initiatives IFCCI is taking to seal the positive sentiment of ‘Make in India’? As a bilateral chamber aiming to facilitate trade between France and India, the IndoFrench Chamber of Commerce and Industry has taken various initiatives since the past nine months that the Make in India campaign was launched by the Prime Minister Mr. Modi, to increase awareness towards

the French investments in India and create awareness about the opportunities of investments that India has to offer, as well as to encourage Make in India initiatives. We have conducted several conferences and seminars in the various Metros where the Chamber in present, i.e. Mumbai, Delhi, Chennai and Bangalore,on the possible avenues of foreign investments towards Make in India, Smart Cities, Digital India, Clean India, etc.. IFCCI is actively supported in these events by the Indian Government, and the presence of eminent chief guests such as Mr. Amitabh Kant, Secretary, Department of Industrial Promotion and Policy, Ministry of Commerce and Industry, Government of India, and Mr. Shankar Aggarwal (IAS) then Secretary, Ministry of Urban Development, Government of India, thus enabling a direct discussion between the Government of India and the CEOs of French and Indian companies, members of the

Chamber. France is way advanced when it comes to implement high-end technologies in manufacturing. India is still lagging behind both in terms of invention of new technologies and proper manpower to apply it. How, in your opinion, can this gap be bridged? French companies open more and more R&D centres in India (more than 20 at the moment) some of them employ more than 1000 persons (Alcatel, Schneider Electric, Dassault Systems to name a few). In addition, relationships between French and Indian universities are developing fast as many MoUs have been signed and keep being signed between Indian universities and French universities and “Grandes Ecoles”, which will definitely help in creating more cooperations and collaborations, and will be beneficial to both countries.

The Indo-French Chamber of Commerce & Industry (IFCCI) can support French and Indian companies in developing their business in India and France respectively.

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July 2015

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Promote “Make in India” through Indian MSME

Mukesh Agarwal Managing Director, 3DPD Dr. Mukesh Agarwal graduated from IIT Madras with a B.Tech in 1988 and subsequently obtained his Doctorate from US specializing in Rapid Prototyping Technologies. He is engaged with Rapid Prototyping / Additive Manufacturing technologies for almost 25 years. Subsequently, he worked as a Scientist in US working on Advanced RP/AM technologies in Metals Ceramics, and Composites. He returned to India in 2000 with specific goal of starting a Company that provides Rapid Prototyping services to Indian Manufacturing companies. With this goal, started 3D Product Development Pvt Ltd, which has been the leader in the RP/AM services for last 15 years. On being asked about the aspect of ‘Make in India’, he pointed out that proper skill development in balance with the industry need can channelize India’s huge population towards an uplifted economy. Manufacturing will be cost-competitive, quality driven and technologically advanced if the desired focus from the Government is given. More from the conversation follow:

Impact of Make in India This is the kind of a mission to boost mass employment and take India forward in manufacturing. However, since its announcement, clarity on the mission is not specific. Thus far, it seems to be a mission to attract large global

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MNC to start manufacturing in India. If it is to have far reaching impact, it must also promote “Make in India” by Indian MSME. We have to wait some more time to witness definite impact of this campaign. Would you look at expanding

the manufacturing facility? The “Make in India” mission emphasized by the Government for larger private sector participation in Defense, is leading us to explore the possibility of offering our services to Defense/Aerospace sector. We are currently exploring

opportunities for our Company in this area and if required we will add/upgrade our capacities. Is the focus on Import substitution or Export promotion? Under the above initiatives, our focus is both. We expect more

July 2015

The “Make in India” mission emphasized by the Government for larger private sector participation in Defense, is leading us to explore the possibility of offering our services to Defense/ Aerospace sector.

focus on Import Substitution as Offset Clause becomes more applicable in Defense procurement programs from Private Defense MNCs. What are the steps that the Government should take to promote manufacturing in India? As I had mentioned a few years back in your Magazine, I believe the Government’s job is to provide an enabling atmosphere by means of providing good, worldclass infrastructure, clean uninterrupted power, and logistics infrastructure. Another area where the Government can help is with ease to comply business and tax regulations. We have heard of the term “tax terrorism”. I would like to take this one step further and suggest there should be an end to “regulatory terrorism”. MSME businesses are worst affected by the myriad of complicated

July 2015

and opaque regulatory norms. Initiatives like GST are steps in right direction. On another note, we need large number of skilled workers, skills which are relevant as per today’s technological requirements. What are your suggestions for better productivity? In case of labour intensive industry, skill development can lead to better productivity. In case of technology based industry, automation and up gradation of technology is the way of improving productivity. How can India compete with the global Engineering market? Upgrade skills and talent and move up the engineering value chain. This far, India has managed to carry out engineering work which is predominantly labour intensive. As India loses its labour arbitrage advantage, the way forward for Indian

Engineering Services Companies will be to provide more comprehensive and higher end-to-end engineering services. An example is Additive Manufacturing. How many Indian Companies understand AM and can offer Design for AM services. Recently, I had a lengthy discussion with the CEO of one of the mid-tier IT/Engineering Services companies. When I explained the opportunities in this area for them, he was quite amazed but admitted that none of the Indian companies possess such high end domain specific engineering knowledge. However, they are willing to take a plunge. We need “Design in India”, “Innovate in India”, “Create in India”, and “Engineer in India”. Not just “Make in India”. Problems faced while dealing with the Government authorities and how they can be eased.

As mentioned above, we need to end “regulatory terrorism”. What we do in India when framing laws is that we start with the assumption that everyone is a cheat and will flout the law. Contrary to that, most companies comply with the law to the best of their knowledge and understanding. Only a few minorities flout the law wilfully. To prevent them doing so, we make the law complex and opaque. But that does not eventually give the positive result. However, the law abiding majority incur huge costs in compliance and suffer “regulatory terrorism”. Initiatives like GST are in right direction. We need more such initiatives. What is your take on our Prime Minister’s urge not to see India as only a market but to see every Indian’s potential? This is in line with PM’s “Make in India” mission. The idea behind this thinking is that

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do not just make in India or elsewhere to sell in India. The idea is to look beyond India as a marketplace for making profits. India has the potential to be a partner in the sustainable development of global economy. Tap the obvious or latent talent of every Indian to its fullest to reach the eventual goal of sustainable development for business as well as our planet. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? One needs a balance here. In fact, I would add the third element also- Indian SMEs,

Indian MNC (large Indian Corporates), and Global MNCs. All three have a role to play in India’s future as Engineering and Manufacturing centre. One cannot thrive without the other. The MNCs, whether Indian or Global, need a vibrant Indian SME sector to feed their critical supply chain. Conversely, the Indian SMEs need the MNCs to sell to.

market or for global market. Not just “Make in India” which is often construed as “Manufacture in India”. If my understanding of this vision of the PM is correct, then we are in the right direction and will lead to not just manufacturing work force employment but will also enable us to move up the value chain in engineering and manufacturing.

edged sword. If not educated

How far has “First Develop in India” by our PM, reached out to the Manufacturing Sector?

As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years?

If that happens, it augers well

My understanding of this mission is as follows. Design, develop, engineer, test, validate, and manufacture in India, whether the “development” is for Indian

Our demographic advantage of youth can be a double

and trained in skills required by industry today, then the employability of this large population can turn into a nightmare. If this is addressed, then the large scale employment of a skilled workforce can turn Indian manufacturing sector into one of the most productive, quality driven, and cost competitive. for the sector to reclaim its share in GDP which has been slipping in last few decades in comparison to services sector. Improvement in manufacturing sector has positive and far reaching consequences for the agricultural sector as well.

Indian SMEs, Indian MNCs & Global MNCs have a role to play in India’s future as Engineering and Manufacturing centre. The MNCs, whether Indian or Global, need a vibrant Indian SME sector to feed their critical supply chain. Conversely, the Indian SMEs need the MNCs to sell to.

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July 2015

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Strategic Investment irrespective of Short-term Gains will be Profitable in Indian Market

Lars RK Talwar Norberg President & CEO, ECFT Autonomics

Mr. Lars RK Talwar Norberg,the President & CEO of ECFT Autonomics, is a manufacturer of military helicopters and UAVâ&#x20AC;&#x2122;s, Advisory Board Member of Einride Autonomous Systems, India, a supplier to the Indian Government of defense related systems, and founder of EXTEND Advisors, a global business strategy and M&A advisory firm. Lars has lived in India since 2007 and worked with both the private and public sector here. He has wide range of experience from business in Europe USA, Middle East & Africa, as well as Asia Pacific. In conversation with our team, he explored the minute detail of Indian manufacturing sector and where to put emphasis the most. He said a developed economy is the outcome of well-developed society and the responsibility lies on its citizen than the Government. India should go through a major overhaul from its basic level education to the core training given in the manufacturing facilities. Also, he asked for a leadership quality and willingness to take risks among the young professionals. Excerpts:

The prospect of Make in India. It will definitely have s significant long term positive impact on industrial production in India, exports, and job creation. Short term there are still challenges such as access to educated, trained, and experienced work force, tax and duties, access to land at reasonable cost etc. Industries that can serve to Indian market and export are the most likely to embrace the Make

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In India initiative - or where government-to-government relationships are a factor for making business happen, like in the defense sector. Would you look at expanding the products you manufacture locally? We are planning to establish a development center and a manufacturing facility in India, and build a network of Indian suppliers. The intention is to have a range

of products tailored to the Indian requirements, supply the Indian customers, and export components and sub-systems from India to other markets when those are common to other market variants. We want to leverage the talent base in India, for the time it remains the cost advantage in India, but more so be close to our customer. Is the focus on Import substitution or Export promotion?

I do not believe in substitution or promotion. Such programs are temporary. Strategic investments in a market like that of India are made on parameters that can be judged and managed regardless of short term program gains. One issue in India has been unpredictability related to such programs and the implementation and enforcement. Another such are the interpretation of ITD of tax liabilities in cross border trade

July 2015

We should find ways to ensure access to educated, trained people who are prepared for and to do a good job. This means that the educational and schooling system needs a major overhaul.

and transactions. Steps that the Government should take to promote manufacturing in India. Actually I think the Government is doing and have announced exactly what is right. I also see that it is being implemented. The Industry and individual companies might ask for more and more is always good, but one must also understand that India is going through a major positive shift and the Government does have many considerations and areas that need to be addressed. What are your suggestions for better productivity? Infrastructure improvement is one major area to address. Another is to find ways to ensure access to educated, trained people who are prepared for and to do a good job. This means that the educational and schooling system needs a major overhaul. The access to talent is, based on my experience quite good in some areas. What is lacking is leadership and management with the right thinking, attitude and skills to get the wanted results, positive working environment and consistent

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quality out of “the team”. But, the fundamental aspect to change is to infuse long term thinking and investment practices to balance the traditional short term arbitrage thinking with local business men and companies. Problems faced while dealing with the Government authorities and how they can be eased. None - we have a very good relationship with the Government and the Make in India program. The support we are getting is exceptionally good in any comparison. We have even been invited to present our case to the policy making organizations for them to consider in evolving and improving the environment for the local and international manufacturing entities in or interested in India. Do subsidies reach the industry? I actually don’t know - we do not go for subsidies. It is and should be a secondary concern. It would be better if the Government used the funds for direct investments in strategic areas and infrastructure that is needed and where the private

sector is not “interested”.

next 20 years?

What is your take on our Prime Minister’s urge not to see India as only a market but to see every Indian’s potential?

Correctly managed the maximum growth rate is 15% per year. Realistically over 20years I think 5% is a realistic outcome per year.

He is absolutely right in that. That is why we have adopted a dual strategy and why I earlier emphasized the management and leadership aspects to bring the best out of that potential. It is easier said than done though - because of cultural differences and other complexities. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? If I have to choose one I would say SMEs of India, but in reality it should be a combination. How far has PM’s “First Develop in India”, reached out to the Manufacturing Sector? Clearly yes. Maybe more so abroad than in India. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the

The steps Government should take to develop entrepreneur skills in young engineers from the academic level? This topic deserve its own essay; it is about the school system in general-what and how it is taught. It is about getting a competitive spirit into the youth. It is about attitude and values. Ways of finding incentives for taking on challenges and risk. It is a matter of the values in traditional families of what is a good path for the future. And it is about access to sufficient, competent and risk willing funding. It boils down to the society. Is the society the responsibility of the Government or the citizen? The government can be an enabler but the responsibility is of the citizens - taking responsibility outside your own walls and family needs, a take on challenges and opportunities to make a difference.

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Need for Global Competitiveness in the Indian Manufacturing Industry

Viren Joshi CEO & President, Sigma Electric The author, Mr. Viren Joshi has thirty years of experience in leading engineering companies across India, Asia, MEA and Europe. He has acquired wide knowledge on practising Lean Enterprise, Policy Deployment/ Balance scorecard and Talent Development. He previously worked at Parker Hannifin USA, where he set up operations in India and over 15 years led it to a market leadership position. He has done his Graduation in Mechanical Engineering and Post Graduation in Business Management and has received a National Award from The President of India, for a paper on Alternate Sources of Energy. On the prospect of ‘Make in India’, he expressed a positive response upon the possibility of India being one of the competitors in the global manufacturing platform. He has also emphasized on proper skill enhancement and lean implementation explaining these two as key potentials for growth of any firm.

I had the privilege of attending the inaugural launch of the’ Make In India’ mission by the Prime Minister. The program was awe inspiring, the conference halls overflowed with eager participants and India’s leading CEO’s were in attendance. PM Modi spoke persuasively on the vast opportunities for companies to manufacture and grow in India and supply globally.

goods with high standards of productivity and living. From those glorious heights, India’s share of global manufactured goods fell all the way down to 2% (in comparison China’s manufacturing has 24% share ). India was recently ranked 71 out of 144 in global competitiveness; of great concern and notable since countries like— Indonesia, Philippines and Vietnam were ahead of India in these rankings.

India was a global powerhouse in manufacturing in the 18th century, having 25% share of the global manufactured

The Make In India mission can become the focal rallying point and a game changer for the revival and rapid growth of Indian

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manufacturing. India must aim to rise and become a global manufacturing leader once again. The Government has listed the areas where it will lend support to the ’Make in India’ mission, especially in policies and infrastructure. The 25 high growth industries selected is a focal cluster approach to enhance our manufacturing industries. ‘Made in India’ should become the prime motto for all the manufacturing firms in India. To achieve the PM’s vision of ‘Make in India and sell anywhere’, the following

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India will become one of the most populous nations by 2025, with a headcount of 1.4 billion. Around 64% of India’s population is expected to be in the age bracket of 15–59 years by 2026. Talent development can help this vast number of youth to become employment ready and India can shine in the area of manufacturing.

should be done by manufacturing firms to become truly globally competitive: 1. Tap raw materials which are available in abundance in India, which in turn will minimize the cost of the product. This will ensure the cost competitiveness of finished goods from India. 2. Take advantage of India’s large pool of technically qualified manpower for making the product better 3. Achieve economies of scale by tapping the huge potential in the domestic market for engineering products and services Costs can be amortised over larger volumes, thus making exports more cost competitive 4. Create awareness across the globe that the quality of engineering goods that are made In India matches world standards 5. Focus on making India the number 1 outsourcing destination. India’s global competitiveness in R&D, engineering design and software development bodes well for growth of new opportunities arising from these activities which are amenable to being outsourced 6. Adopt lean manufacturing. In order to be

July 2015

globally competitive; one of the important practices an Indian manufacturing firm should adopt is Lean Manufacturing. Competitiveness in the Global arena Lean Manufacturing I would like to focus on the need for companies in India to achieve global competitiveness. I would equate need for global competitiveness with survival. Companies must recognise the importance of continuous improvement programs to remain competitive. Global competitors will keep moving the goal post, prices will keep dropping and enhanced services will be provided, making it difficult to hold onto existing business, without bringing about similar improvements. And, there is no one solution to overcome this situation. Many companies have adopted a successful Lean Manufacturing program and retained their globally competitiveness. Lean focuses on removing wasteful costs and toning up the organisation to become highly productive in every area of its operation. Manufacturing firms need to embrace the following practices in order to become globally competitive:

1. Focus on –Quality, Quality, Quality.... There is No substitute for just supplying a quality product. Quality must flow through the company at every stage, every activity —from the sales quote, engineering, product ,manufacturing shop, delivery system, documentation etc 2. Focus on 3 Ps’---Processes, People, and Product. Standard Operating Procedures, well trained & motivated People and a quality Product –are the 3P’s that every company must adhere to. Global customers, why even Indian customers, expect nothing less The organisational mindset should be calibrated so every function ensures that Standard work procedures become the way of working. India has a large pool of technically qualified manpower; they must be trained to participate in this Manufacturing Revolution Products must meet the customers’ specifications and expectations including aesthetics---no less will be acceptable

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3. Global Mindset, Local execution A positive winning attitude –“We Can “will go a long way, towards developing a successful organisation. Successful ‘Execution’ at the operations level to meet commitments, is of prime importance. 4. Lean Lean Enterprise, Lean Manufacturing –are two famous mantras which can change the face of Indian manufacturing. Lean is a Cultural evolution of the company to create continuous improvement. Change will not occur until “Lean is the way we do things around here” Lean Enterprise— covers the whole organization, and is arguably one of the best tools available today, to improve financial performance and customer service, leading to unlocking organizational value, considering the VUCA (volatile, uncertain, complex, and ambiguous) Global and Indian environment Lean Manufacturing—executed across the

shop floor has the potential to create world class competitive manufacturing facilities. The shop floor and office is a reflection of Lean Management. We must empower all associates to eliminate process waste (processes are 60%-90% waste) through Kaizen participation and visual controls.

China’s Demographic dividend would start tapering off by 2015; India is expected to enjoy the benefits until 2040.

Indian demographics well placed to support Make In India mission

1. Improve labor productivity

India will become one of the most populous nations by 2025, with a headcount of 1.4 billion. The country’s population pyramid is expected to “bulge” across the 15–64 age brackets over the next decade, increasing the working age population from approximately 760 million to 870 million by 2020. Around 64% of India’s population is expected to be in the age bracket of 15–59 years by 2026. India is poised to become the world’s youngest country by 2020, with an average age of 29 years, accounting for around 28% of the world’s workforce. In comparison, during the same period, the average age is expected to be 37 years in China and the US and 45 years in Western Europe. While

The increased proportion of working population will provide a window of opportunity to:

2. Increase domestic production 3. Enhance revenue from services 4. Increase savings and reduce the burden of old residents on the working population. Empowered with unique demographic advantages and guided efforts, India is poised to position itself among developed economies within the next 10–15 years. Case Study: Sigma Electric—global engineering company focused on Lean Sigma Electric is the global leader in manufacturing machined castings. Key strengths are world class manufacturing plants; focus on quality, processes and

All operations are In-House “One Stop Shop”: Lean Enterprise, Lean Manufacturing–are two famous mantras which can change the face of Indian manufacturing. Lean is a Cultural evolution of the company to create continuous improvement. Change will not occur until “Lean is the way we do things around here”

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July 2015

MIDEL ESTER-BASED TRANSFORMER

Products of M&I Materials Ltd.

July 2015

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people, lean manufacturing practices, engineering & design skill sets, global customer relationships, international business practices and compliances and an excellent highly skilled team. Lean Manufacturing: All Sigma facilities practice Lean Manufacturing principles and employees practice ‘lean’ in their day to day activities. This helps in identifying and eliminating waste in the manufacturing and business processes, creating value for customers by offering end to end cost effective and innovative solutions with focus on Quality, Cost, Delivery, and Safety & Environment. Sigma and innovation Sigma has inculcated a culture of continuous improvement over several years, creating a learning and evolving organization. Global experts in Lean manufacturing, technical processes, HR and Performance management have helped the company through this evolution.

Over 2500 kaizens carried out over 12 years have resulted in improvements being carried out in every plant, office, process and policies, as part of a continuous cultural drive to move Sigma from Good to Great.

and nurtures talent and Lean programs, including participating in kaizens.

Sigma’s innovation process has resulted in:

• Sigma in house intranet based Performance monitoring system-ePMS, which is a powerful tool to drive growth, innovation and continuous learning. This system is based on Policy Deployment and incorporates Balanced Scorecard

•Developing 100+ new Custom products & generating annual business $22M •Developing 12 patented products to generate annual business $ 3M achieving annual savings $4M through hundreds of breakthrough ideas & Kaizens conducted. Sigma’s philosophy towards People and Talent Development • Sigma has developed and nurtured talent over the past many years. Sigma improved people motivation across all levels by creating a bottom-line leadership development model, tapping aspiring workmen eager to grow and systematically training them for higher levels • Sigma senior management actively drives

• Sigma has focused on recruitment of women on the shop floor, not common in foundries.

Message for Indian Industries to sustain the global competitiveness I do believe that the Indian economy and global markets will continue to face a VUCA environment (Volatile, Uncertain, Complex and Ambiguous) for many years. Industries need to prepare themselves to face this global situation. The key message that I would convey to all Indian companies is to focus on Lean Enterprise/Manufacturing: • Lean Enterprise is arguably, one of the best tools available today to improve financial performance and customer

Lean Manufacturing: Fastest to Market, Highest Quality, Lowest Cost, through shortening the value stream

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July 2015

service, leading to unlocking organizational value, considering the uncertain environment today and in the future • Lean is all about empowering people throughout the organization, to execute changes in workflow process • Lean starts and ends with each individual’s sense of accountability • Lean instils a culture of execution through disciplined tracking methods using the Balanced Scorecard • Lean requires accelerating the cultural change of top leadership talent • Lean will prosper if the leadership retains a sense of lack of satisfaction. • Lean manufacturing produces higher levels of quality and productivity and better customer responsiveness

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• For securing the full benefits of lean manufacturing, the organization needs to concentrate on their whole value chain by implementing comprehensive lean tools. Sigma Electric is a leading global manufacturer of ferrous and non-ferrous die-cast and sand-cast components and sub-assemblies. It is one of the largest foundries in the world in the industrial (non-automotive) market segments. Nine world class manufacturing plants in India with state-of-art tool rooms enable Sigma to provide customers with fast, turnkey solutions in a wide array of materials, including zinc, aluminium, steel, iron and copper alloys. Our product range includes intricate, high precision machined castings for varied applications. Sigma has a facility near Raleigh, NC, USA,

which houses engineering services, an experienced sales & marketing team, and warehouse and distribution operations, which allows us to efficiently service our large North American customer base. With a workforce of 3,000 employees including 300 engineers, we offer customers services in engineering and design, secondary finishing, assembly, packaging, and supply chain management. Sigma serves diverse industries such as electrical, power transmission and distribution, appliance, oil and gas, construction, industrial, telecom and instrumentation sectors. Global customers include Eaton, Siemens, Emerson, ABB, Whirlpool, Electrolux, Endress +Hauser, Stanley Black Decker, Timken, Crompton etc.

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The German companies in India are looking forward to the implementation of GST

Rajesh Nath Managing Director, VDMA India

Mr. Rajesh Nath, Managing Director of VDMA, is a Bachelor of Engineering and has a degree in Business Management. He has also attended the International Business Program from IIM. He is heading the Indian office of The German Engineering Federation (VDMA) as Managing Director since January 2008. Presently, he is a member of International Council of Consultants, Institution of Engineers in India and a fellow member of MGMI. When interviewed by MART, he points out that the infrastructure growth in terms of eight core industries has been higher than industrial growth since 2011-12 and this trend is expected to continue. In infrastructure, the focus should be on resolving long-pending issues such as pricing of gas, establishing processes and procedures for transparent auction of coal and minerals and improving power generation and distribution.

The prospect of Make in India. Being one of the fastest growing economies in the world, the Indian economy is at the centre stage of the changing economic order in the world. A nation of over 1.2 billion people with a median age of 24 years, Brand India today is very relevant for the growth of global economy. Post the elections, Indiaâ&#x20AC;&#x2122;s new Prime Minister, Narendra Modi, in his new agenda has

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brought the focus of the nation on making India a manufacturing hub for global businesses. Manufacturing accounts for only 15% of Indiaâ&#x20AC;&#x2122;s GDP and having witnessed a 0.7% contraction in 2013-14, the Prime Ministerâ&#x20AC;&#x2122;s thrust on the sector is well founded. As a result, it is evident that relevant policies are likely to be announced to facilitate growth of this sector.

campaign on 25th September 2015, there has been a number of investments. In February 2015, Huawei opened a new research and development (R&D) campus in Bengaluru. It had invested US$170 million to establish the research and development center. In June 2015, Francebased LH Aviation signed an MoU with OIS Advanced Technologies to set up a manufacturing plant in India to manufacture drones.

After the launch of the

Manufacturing sector growth

is key to sustained economic growth as it is not just dependent on demand and investments but on solutions and technologies that could enhance operational excellence of a manufacturing facility. So far, in India, the rate of technology adoption has not been uniform due to lack of awareness and cost concerns. In the current context, with renewed industry confidence and a new, stable Government at the Center, the country has

July 2015

Vocationalisation ofmanagement education can be brought about by providing a channel for the undergoing ‘trade skills’ to seamlessly migrate to vocational management skills.

manufacturing prospects and economic growth is expected to get a major boost. Germany is one of the top ten investors in India. How many companies from Germany have shown their interest to invest in India in the last one year? Large German companies have been stepping up their existing investments and several new companies have entered the Indian market. Currently India ranks at the 5th position among Asian exporters to Germany. In 2014 the total import of machinery from Germany reached a volume of €2.5 billion (Rs 17857 crores). The export of German machinery to India has increased almost five fold in the last 14 years from approx 500 Mio Euros in 2000 to around 2500 Mio Euros in 2014. In this period the number of VDMA members in India has increased from around 200 to around 550 presently. Many German companies and VDMA members are planning towards more investments in India. Companies like Liebherr, Schwing Stetter, Putzmeister, Wirtgen, ZF and Thyssenkrupp, to name a few, have invested substantially in the last 3-5 years.

July 2015

Can you please tell us the risks and regulations in the field of doing business in India? Do you feel any positive change in this field after the announcement of ‘Make in India’? Free Trade Agreement (FTA) has been the most awaited to boost Indo- German collaborations and greater business between Indian customers and VDMA members. The EU and India hope to increase their trade in both goods and services and investment through the Free Trade Agreement, whose negotiations started in 2007. Following the EU-India Summit in February 2012 negotiations entered an intense phase. Important issues include market access for goods, the overall ambition of the services package and achieving a meaningful chapter on Government procurement. Even during the visit of Mr. Narendra Modi to Germany at the Hannaover Messe in April 2015, both he and the German Chancellor spoke in favour of restarting the discussion on FTA. Further the German companies in India are looking forward to the implementation of Goods & Service Tax (GST) in 2016 which would help in the ease of doing business here.

VDMA is already offering different programs to develop manufacturing in India. What are the steps, you feel, the Government should take to develop entrepreneur skills among the youth from the academic level? Prime Minister Mr. Modi has made the national Mission on Skill Development an issue of high priority as a part of his “Make in India and Sell Globally” strategy. If India is to reap the benefit of its demographic dividend, its burgeoning, young workforce must be equipped with quality skills to cater to not only domestic requirements but global demands of skilled manpower. Skill development is much more than what is associated with ‘trade skills’, and equally relevant and important in other disciplines as well. One of the fastest growing education spaces in India is that of management education. Vocationalisation of management education can be brought about by: a) greater and more structured interface between academia and industry/commerce so that the skill requirements and expectations of the prospective employers are highlighted continuously;

b) customizing syllabus to specifically cater to the aforesaid contemporary needs instead of devoting disproportionate weightage to less relevant, esoteric topics; c) consciously involving practicing industry/commerce representatives in the teaching programme; d) practical ‘on the job’ training to the students, at suitable intervals, whereby prospective employers actively participate in training their own future employees, and for industry at large, as an integral part of the curriculum, and e) providing a channel for those undergoing ‘trade skills’ to seamlessly migrate to vocational management skills. OEMs can take proactive steps in setting up training avenues through tie-ups with different types of players. Tie-ups with industrial training Institutes to provide vocational training have already started. OEMs are also looking at partnership opportunities with professional training companies in collaboration with State Governments, and using the support and network of nongovernmental organizations to offer subsidized training programs for underprivileged youth.

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A good example of a typical industry, society and Government cooperation for vocational training is that the German Engineering Federation (VDMA) in association with Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) GmbH and the Facility Management (FM) industry in India have developed an innovative skill development program to promote skills in cleaning sector in India. The skills development programme for the marginalized youth was launched, at the two locations: at GMR Varalakshmi Training Institute, near Dwarka and at Don Bosco Yuva Kendra New Delhi. At the two training centres 10 batches of youth have already been trained and placed successfully with FM companies of repute. Last year, Mumbai arm of this “Skill Development Program in Cleaning Sector skills for Facility Management (FM) sector in India” was also launched at the Bosco Boys Home, Borivili (W), Mumbai. The program was also launched recently in Bangalore. The objective is to create a pool of skilled youth who would efficiently and effectively

use hardware available in the sector to perform professional cleaning services; thus catering to the growing need and demand for skilled manpower in this industry.

Industrial Corridors Authority, streamlining environment and forest clearances and labor reforms could lead to rapid improvement in ease of conducting business in India.

From the perspective of Germany, how easy it is to do business with India? Do you feel the new NDA Government is really facilitating the ease of doing business?

The Make in India initiative is aimed at facilitating investment, fostering innovation, enhancing skill development, protecting IP and building best-in-class manufacturing infrastructure. India could bolster the ‘Make in India’ initiative by improving on infrastructure and reforming labor and land laws by complementing it with the Skilling India initiative. This would enable a larger section of the population to benefit from the structural transformation that such sectors will facilitate.

Despite an abundance of human resources and a demographic advantage, the absence of adequate managerial and leadership talent is a major challenge. Talent pools are shallower than they appear at the first glance. Supply-demand gaps exist, not only in terms of total numbers, but also in terms of quality. The declining trend in industrial growth has commenced recovery since last year. However, in the current year, credit growth, corporate performance and the Index of Industrial Production continue to point towards slow industrial growth. A number of macro level and sectoral initiatives undertaken to improve industrial growth are expected to yield results over time. Fresh initiatives like Make in India, Digital India, creating a National

In which sector in India the most investment is happening from Germany? In 2013 among the machinery sectors, major demand in India of German equipment was for Mechanical Power Transmission (9.3%), Textile Machinery (8.2%), Machine Tools (7.6%), Valves (5.2%), Air Handling (5.0%), Food Processing & Packaging (4.8%) and Material Handling (4.7%) There are other sectors like Plastics, Printing, Paper,

Construction and Building Material Machinery which are growing steadily in India. Maharashtra with around 39% share of German investments remains to be the most attractive destination for German investments in India. In last 4 to 5 years, Pune has become the hotbed for new German investments. Karnataka and Gujarat are other important destinations. Indo-German trade has now crossed the € 12 billion mark. What are the initiatives VDMA is taking to seal the positive sentiment of ‘Make in India’? India is a favourite destination for Foreign Direct investments with investments of Euro 15.17 billion during 2013-14. With €16.1billion bilateral trade during 2013-2014, Germany is India’s sixth largest trading partner engaged in the areas of automobiles, chemicals, services, nuclear reactors, construction etc. The VDMA office in India serves the Indo-German economic relations in the different engineering sectors and promotes the activities of VDMA member companies in India. To support its member companies, VDMA India office offers the comprehensive

Large German companies have been stepping up their existing investments and several new companies have entered the Indian market.

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July 2015

assistance for both newcomers in the orientation phase as well as for established members in further development. To seal the positive sentiment of ‘Make in India’, VDMA organised a German delegation visit of Mining Machinery Manufacturers to India, in May this year. The delegation consisted of 16 people from 10 major German Mining Machinery Manufactures. The delegation visited 2 major Mining companies in India – Coal India Limited (CIL) & Singareni Collieries Company Ltd (SCCL) and visited open cast as well as underground mines of SCCL and of Eastern Coalfields (ECL). Officials from the Mining and Energy department of the Government of the state of

NRW in Germany also joined the delegation. A meeting with the Director General of Mines Safety (DGMS) was conducted in Dhanbad. The delegation also met senior government officials of Telengana & some private mine operators in Hyderabad. How can the gap between Germany’s implementing high-end technologies in manufacturing and India’s lag both in terms of invention of new technologies be bridged? The large scale manufacturing for domestic markets would make us more competitive from both cost and quality stand point of view and provide opportunities for exports to developed countries. But before that, the Government has to view the

manufacturing sector from the macro as well as micro levels to understand the levers that would accelerate the growth of this sector. A thriving and competitive manufacturing industry needs an excellent infrastructure that would enable it to be competitive on cost, quality and supply chain, three important parameters that determine the success of the industry. However, most states do not provide grid power and the cost of captive power to grid is 1:3, while water is a huge challenge in almost every state. The time taken for clearances in ports is anywhere between three days to one month. Country-wide regulations on land acquisition have been enforced in a non-uniform

fashion, causing delays. Even lenders are unwilling to support projects unless clearances are available and 100% right of way has been secured. These inefficiencies add to the cost and impede the ability to supply quality products on time and form deterrents for new entrants to this sector. Infrastructure growth in terms of eight core industries has been higher than industrial growth since 2011-12 and this trend is expected to continue. In infrastructure, the focus should be on resolving long-pending issues such as pricing of gas, establishing processes and procedures for transparent auction of coal and minerals and improving power generation and distribution.

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July 2015

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Implementing Mechanisation will Fetch High Productivity

H Sundara Murthy CEO, Fenfe Metallurgicals Dr. H Sundara Murthy is M.E. and Ph.D. in Mechanical Engineering from Indian Institute of Science, Bangalore. After working in leading industries, he started Fenfe Metallurgicals, manufacturing aluminium alloy castings. He was the National President of The Institute of Indian Foundrymen and presently Chairman, Environment & Energy Saving Commission of the World Foundry Organisation. He was also Chairman of Indian Institute of Metals, Bangalore and Governing Council Member of Aluminium Association of India. While reaching out to the readers of MART, he points out that the Government of India started the ministerial level intervention but the progress made by that centre needs to be audited. Very little has been achieved where as the need is very large. Policies for vote catching are a very big hindrance in the skill development activity.

What do you think is the impact of the Make in India mission? I thank PM Narendra Modi for bringing out this concept and slogan. We all felt very elated by this very concept. Many things which can be made in India are being imported. In ninety percent of such cases it is the scale of operation which makes it unviable to make in India. When he gave this call to the world community, it has far reaching effect and we welcome whole heartedly. Would you look at expanding

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the manufacturing facility? Certainly. Not only myself but many in my scale of operation are looking to manufacturing for a world leader. This will solve a major problem for a MSME which is marketing. Is the focus on Import substitution or Export promotion? Make in India has a broader issue. A product is already being manufactured and sold elsewhere in the world. This is for a product which is already established. Instead of making in any other place,

why not India with so many advantages already highlighted. This idea is much broader than import substitution and export promotion. What are the steps that the Government should take to promote manufacturing in India? Plenty. I am amazed at the entrepreneurial capability of Indian enthusiast. We work from no facility and operate. Looking at what is required, I am pointing out from MSME angle which is applicable to large as well. Consider a small example of Harohalli Industrial

estate developed by Karnataka Industrial Area Development Board (KIADB). KIADB was very keen and started calling for applications TEN years back. Whole activity of the Board ceases in making name sake roads and substandard electric poles. Absolutely no transport facility, no water supply, no drainage facility, no canteen facility, no hospital, no police out post, more than anything NO TELEPHONE AND INTERNET even after ten years of operation. More than 250 industries have started production! They are all managing the design,

July 2015

development and accounting activity in a city office in Bengaluru which is adding burden to the MSME. I think there is no planning at all when they want to start an industrial estate or develop an area. The first thing is to sell the land and collect the money. The MSME is left like a orphan whose nightmare is to EXIST Develop is a far reaching dream for a MSME. This is the case in ALL the Industrial areas and estates. What are your suggestions for better productivity? Mechanisation is the only solution for better productivity. This will certainly not reduce the employment opportunity of youngsters. We have to improve the employability

July 2015

of our mass. This is certainly possible by large scale training centres and skill up gradation centres. Government of India started the ministerial level intervention but the progress made by that centre needs to be audited. Very little has been achieved where as the need is very large. Policies for vote catching are a very big hindrance in the skill development activity. How can India compete with the global Engineering market? This is a repetition. Still it is very pertinent to state the position in which we are in. Highly talented engineers who want to become entrepreneurs are spending their valuable

time in Sales Tax, Excise, Labour Court, Electricity Office, Village Panchayat etc apart from local influential groups! The intervention of the Government in a big way in solving the MSME day to day problems from VAT, Excise, Electricity Boards etc will be a great contribution. The department should do its job regularly instead of waiting the MSME to do a mistake and catch them unaware. A small example is the Electricity Board checks the Meter once in two years and declares the Meter is defective and slaps the penalty! Why not the Board check the Meter every month or at least once in three months? The VAT is checked after 6 years and puts the penalty for a mistake not committed by you-you are

penalised if your supplier has not paid the collected vat to the State! Why not complete the VAT assessment in one or two years. The rules made by the British Raj in assuming that subjects want to cheat the Government is the basis of Government departments even today. One must see the routine notice from the departments-if you fail to produce the documents within a week, you will be prosecuted and arrested! Things need to change in content and attitude. What are the challenges that you face on a regular basis while dealing with the Government authorities and how can they be eased? I will give a small example.

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I had to despatch a box of 12 kgs from Harohalli to the transporter in Chamarajapet. The distance is 40kms. If I hire a tempo his minimum charge is Rs.1200 which my product cannot absorb. I sent the box in my car. The driver telephoned that police have ceased the car and kept in police station. I told him to leave the car in police station, request the police to release the box and deliver to transporter which is urgently required by my customer in Chennai. Next day the driver went to police station, paid a penalty of Rs.1200 and got the vehicle released. I felt frustrated and wanted to challenge the rule in court but my friend advised me not to waste time? I think it is advisable to amend the MV rules to allow carrying things as long as it is not projecting outside the body. It seems the police told him the next day that a problem which can be solved by Rs.100 is complicated by your boss! Like these there are plenty of problems in Sales Tax, Excise, Electricity Office, etc. Do subsidies reach the industry? Yes and No. It is better in the last few years compared to the earlier years. The young officers are proactive and helping in

nature. Seeing the working of young officers, we get a satisfactory feeling that the future is safe in these hands. Our Prime Minister urged the Global Business Developers not to see India as only a market but to see every Indian’s potential. What is your take on this? Simply superb. But we should appreciate that the global business developer is also a business man. He sees the profit what he can make by his act. He is not interested in developing other country. But once he sees that there is cost cutting in manufacturing he will certainly jump at it. Our society, skill, changing policies and attitude has not gained the full confidence of the Global investor. Hence it is still happening in small pockets where as the potential is 1000 times more than that. We have several successful examples of Maruti Company, Jeans made in Gulbarga etc. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? I must thank our PM Narendra Modi for he has emphasised on the potential of MSMEs. The sector is really huge and

is a means of improving the social and living standards of the masses. The action must be both: Improving the performance of MSMEs by hand holding and inviting FDI to industries which in turn will improve the level of MSMEs who ultimately become their suppliers. How far has PM’s definition of FDI, “First Develop in India”, reached out to the Manufacturing Sector? At least it has really built a lease of fresh life. The whole manufacturing sector is enthused by the slogan. It has created some positive vibrations and we are all proud that we want to contribute to Nations development. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? Tough measures which Sri Narendra Modi was talking in the election rallies are still in paper or we hope he has not forgotten it. The political force is different. States declare sops which centre cannot refuse. It is a complex phenomenon. Each time PM decides on tough measures, an election is in the

way and he succumbs to party pressure- after all he has to exist to think of any plans! But seeing the international scene, India with its demography in its favour, India will certainly be the manufacturing leader by 2020. The steps Government should take to develop entrepreneur skills in young engineers from the academic level? Generally Indians are entrepreneurs by nature. Only a small section of satisfied persons are lazy. Each Government or private employee has two jobs. They plan for additional earning sincerely by working out of office hours. Private workers also will generally plan for some extra earning by putting in extra hours. These skills have to be honed and developed. Regular development of Entrepreneurship is happening in several institutes and has to be improved further. We needed a leader who will enthuse the masses and the captains of manufacturing sector. I think it is now happening. It should give good result and should really bring in “achche din”. Positive attitude will certainly bring positive result.

Think like an Entrepreneur & achieve the Goal: Regular development of Entrepreneurship is happening in several institutes and has to be improved further.

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July 2015

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Allowing FDI will Open More Job Avenues & Improve Standard of Living

Marc Jarrault Managing Director, Lapp India As Managing Director of Lapp India Pvt Ltd, Mr. Marc Jarrault is responsible for spearheading the robust growth and profitability of the business and building the undisputed leadership of Lapp India in the control cables market with over 20 sales offices across India and 2 state of the art manufacturing facilities. Marc has overall 15 years of in-depth experience of business practices and an extensive network across leading players of the manufacturing industry in Asia, and he capitalizes on a large experience in leading multicultural teams internationally. He is also a French Foreign Trade Advisor and member of Eurocham. In conversation with MART team, Mr. Jarrault has forecast that ‘Make in India’ initiative will increase the share of manufacturing to 25 percent of GDP by 2022 from the current 16 percent. Also, they have expanded their manufacturing unit in Bangalore to grab the recent positive sentiment of India. Excerpts:

The prospect of Make in India. With the launch of Make in India campaign, Indian Prime Minister Narendra Modi has laid out the red carpet to foreign investors to manufacture products in India. The Make in India program which includes major new initiatives designed to facilitate investment, foster innovation, protect intellectual property, and build best-in-class manufacturing infrastructure, has already created a positive

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shift in domestic as well as foreign sentiments. Going forward, the economic impact of manufacturing in India will go beyond direct employment. It will create about 100 million jobs in the services sector and allied services like logistics, transportation. This initiative would also increase the share of manufacturing to 25 percent of GDP by 2022 from the current 16 percent. The campaign will also encourage R&D in massive amounts for

innovation in manufacturing. The step taken by the Government as part of this campaign like a ‘single window system’ has already made it easy for companies to do business in India. Would you look at expanding the products you manufacture locally?

pertaining to industries that is part of the campaign - such as power, oil and gas, electrical, cement, steel and construction among others. The focus of the program is to give impetus to these industries, the wire and cable industry will indirectly have the opportunity to benefit from the ‘Make in India’ campaign.

While the wire and cable Industry do not get a direct mention in the campaign, our focus is on supplying cables for applications

India has always been a key focus for the Lapp Group owing to the promising growth opportunities of the country.

July 2015

Government schemes such as Mahila Udyam Nidhi, Mahila Vikas Nidhi, Women Entrepreneurial Development Programmes have helped Women in honing their entrepreneurial skills to meet the changes in global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena.

With the in â&#x20AC;&#x201C; depth knowledge and the understanding of the Indian industry, it has provided a thrust for us in the Indian market. Lapp known for its quality, precision and reliability has built a strong relationship with its customers. This strong relationship with our customers has helped us to reach a new milestone with the supply crossing 1 GW grid-connected Solar PV projects. In fact 2015 has been a very fruitful year for the company since Oct-14, we have succeeded in bagging orders for over 3500MV of PV projects. In India we command close to 30 ++ per cent market share in the solar business. Given the success we will be producing 36,000 kms of Multi Core cables, in addition to the existing 216,000 kms capacity in Single Core wires from our Bhopal plant. Is the focus on Import substitution or Export promotion? India is one of the key markets for us; the company is committed in developing and manufacturing products for the Indian market. For the commitment towards the Indian market we have further

July 2015

invested in the manufacturing plant in Bhopal. The expansion of the production unit at Jigani, Bangalore to the tune of 5 Million Euros demonstrates our intent and long term commitment to India. Our core businesses are spread across 25 verticals with a focus on machine building, oil and gas, automation, textile, cement, steel, infrastructure and construction sectors. Steps the Government should take to promote manufacturing in India? To promote manufacturing in India, the Government needs to deal with the supply and demand side. The Government should address skill development and infrastructure improvement on the supply front. While on with regards to the demand, technology development, low cost innovations, and productivity improvement needs to be addressed. India ranks 142 out of 189 countries according to World Bank in terms of the ease of doing business; hence the Government needs to reduce the number of permits that are required to do business in India. The Government also

needs to ensure that there is a single registration for labour laws - a single window compliance process for companies on labour-related issues. In order to boost electricity production Government accelerate capacity addition, securing fuel supplies and improving efficiency for production, transmission and distribution of electricity. Implementation of indirect tax reform by 2016 will improve competitiveness of Indiaâ&#x20AC;&#x2122;s manufacturing and help India grow faster. The Government also needs to focus on one policy for all the states throughout India. By breaking the barriers of Entry Tax and different VAT rates of different States, the GST will ensure free interstate movement of goods and services - paving the path for a genuine common economic market for the entire country. Suggestions for better productivity? Improve labour productivity: The low manufacturing growth can be attributed to poor labour productivity. Labour productivity and

global GDP share go hand-inhand. Though India has more than 50% of the population below the age of 25, booming demography and labour cost competitiveness, the labour productivity is low compared to that of the developed nations. The Government needs to invest in large-scale development of skills, targeted at the manufacturing sector employees. In addition, the manufacturing companies need to establish in-house training centres to promote vital manufacturing roles including those of machinists and maintenance engineers, as well as impart vocational training to employees. Improve capital productivity: Manufacturing firms need to improve the productivity of their capital. Assessment of the technical design of an organizationâ&#x20AC;&#x2122;s capital equipment to help make trade-offs between capital expenditure and life cycle expectations, and improving the productivity of existing assets through lean management techniques can improve capital productivity to a great extent. How can India compete

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with the global Engineering market? The Indian engineering sector has witnessed tremendous growth over the past few years, owing to increased investments in infrastructure and industrial production. With its association with the manufacturing and infrastructure sectors of the economy, the engineering sector is of strategic importance to the Indian economy. To compete with the global market, India needs to: • Revamp training and skill development programmes to increase number of skilled manpower • Continuous technological up-gradation of tools, materials and inputs to spark innovation in the future • Ease the regulatory measures currently in place to allow quick procurement of approvals

• Encourage foreign firms to set up base in India which in turn will lead to development of its vendors/suppliers due to transfer of best practices Problems faced while dealing with the Government authorities and how they can be eased. There has been a lot of buzz around allowing FDI in India. The main objective of FDI is capital infusion into manufacturing. The result of FDI will be creation of local jobs and transfer of technology which is enforced by the government. This would lead to more jobs for locals which would help in improving the standards of living. Also generation is well travelled, well read and educated. He demands the very best in product quality and value conscious. Which do you think is preferable: concentrating on

the SMEs of India or inviting foreign companies to invest in India? The Indian economy requires equal importance to be given to both SMEs and FDI. The SMEs are the backbone of economic development of a country, as they are the incubators of talent, innovation and entrepreneurial spirit which is central to economic development. To support SMEs, the Government has addressed the funding gap of SMEs and set up an India Opportunity Fund of US $878 million. The Government is also encouraging FDI in India by way of its ‘Make in India’ campaign. For a developing economy like India, FDI can help raise output, production and export at the sectoral level of the economy. How far has PM’s “First Develop in India”, reached out to the Manufacturing Sector? Yes the concept of “First Develop in India” has reached

out to the manufacturing sector. “First Develop in India” has created the enthusiasm among foreign manufacturers to establish their firms in India. Various manufacturers such as Foxconn, will be setting up their manufacturing unit in India, Huawei who has invested nearly 170 million dollars in India as part of the Make India initiative. The aim of this is to increase the purchasing power of the common man which would further boost demand and hence spur development which would be benefiting the investors. The Initiative taken by the Government when it came to skill development, we could see skilled man power available for manufacturing. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years?

Lapp known for its quality, precision and reliability has built a strong relationship with its customers. In India we command close to 30 ++ per cent market share in the solar business.

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July 2015

The skill, talent, the discipline and with the desire to do something these youngsters come with will help in driving the manufacturing sector. It will also be interesting to note the power of innovation that will be driven by these youngsters which will play a significant role in the manufacturing sector. If the Government undertakes the reforms we could see the economy grow by approximately 6 – 8% CAGR over the next 10 years. The steps Government should take to develop entrepreneur skills in young engineers from the academic level? The growth of the Indian economy lies on entrepreneurs and hence there is a need for developing entrepreneurship among the engineering college students from the start of their education. Several entrepreneurship development programs should be organized in the engineering institutions to promote the students to actively start their entrepreneurship at young age which would help in tapping their skills and knowledge. Government should direct educational institutes to come up with courses specifically designed to cater to the requirements of the manufacturing sector. National Skill Development programs should run programs in collaboration with industry to not only make people employable but employed in industry. How far are the Government schemes for women entrepreneurs actually helping? The measures for empowering Women

July 2015

Entrepreneurs in the manufacturing sector? India has always been a land of entrepreneurs and also occupied a strategic position in the Indian economy. Entrepreneurship among women, no doubt has improved the wealth of the nation in general and of the family in particular. Women today are more willing to take up activities that were once considered the preserve of men, and have proved that they are second to no one with respect to contribution to the growth of the economy. The government to encourage women entrepreneurs started various schemes such as Mahila Udyam Nidhi, Mahila Vikas Nidhi, Women Entrepreneurial Development Programmes. These schemes have helped Women in honing their entrepreneurial skills to meet the changes in global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena. The measures for empowering Women Entrepreneurs in the manufacturing sector are: • Flexible work schedules • Have programs that promote careers in the manufacturing sector • Strong drive for diversity and inclusion • Continue to highlight successful women in manufacturing and the work they do both locally and nationally • Engage young women in understanding modern manufacturing • Organize as members with employer leadership teams

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Talents in India need Direction, Counselling and Innovation

Arun Tikle CEO, Tisa Enterprises Mr. Arun Tikle has been a part of the manufacturing sector since 1974. He started his career working at a public limited company in Pune in the marketing and technical division. Soon thereafter, he started his own company M/s. Tisa Enterprises in Bangalore. With over 33 years of experience in the field and hundreds of satisfied customers, Tisa is a standard brand for work holding applications with our customers. Mr.Tikle has vast experience and understanding of the mechanical industry and has helped many companies understand and standardise their work holding elements for fixture designs and clamping systems. Being interviewed on the aspect of ease of doing business in India, he pointed out that though India has plenty to offer in the manufacturing industry, dealing with Government officials should be made more flexible. Also, the taxation system should be more investment-friendly. India has a lot of potential to compete with the global manufacturing giants, but Indians are lacking in discipline. This mindset needs to change first. Excerpts:

The prospect of Make in India. The Make in India campaign started by the Government of India is, indeed, a very encouraging and noble idea. While in the industry the trend for locally procuring products and manufacturing in India has always been prevalent, this campaign has given the same a larger canvas and larger visibility to Indian companies.

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Expanding your manufacturing facility? We at Tisa, have Indianised a lot of products for the Indian Manufacturing industry. While we are already supplying across the length and breadth of the country, we also have many companies we export to. Currently we are in talks with some foreign companies for marketing tie-ups wherein our â&#x20AC;&#x2DC;Made in Indiaâ&#x20AC;&#x2122; products can be

marketed in their country as well as we exported to them as per their requirements. Is the focus on Import substitution or Export promotion? Our effort was to indigenise the products catering to the Indian markets by utilising available technologies at competitive prices. The Indian scenario has fast developed and has gradually

become sensitive to quality and technology. Thereafter, the effort was shifted to Export promotions and it is yielding desirable results. Steps that the government should take to promote manufacturing in India. As a manufacturer, it can be very challenging to set up a business in India. There are a lot of formalities

July 2015

A structured one place solution for all the requirements (Water Electricity and Taxes) of a manufacturing facility needs to be set up by the Government.

which go into the same and handling issues with every department (Electricity, Water, Tax Department, Service Tax) is an ordeal in itself. A structured one place solution for all the requirements of a manufacturing facility needs to be setup by the Government.

Also, the government can set up fairs wherein companies can meetITI graduates for recruitment. We have heard of such initiatives but have hardly seen them take shape.

In many countries, it is seen that the government has set up factories which can be taken on rent and thus decreasing the overhead costs. Such initiatives will encourage people to take up manufacturing when they do not have the necessary capital or the risk taking capability of starting a manufacturing plant but have a commercially viable idea.

The government has to promote manufacturing in a big way. This campaign is a welcome start. The youth has to be convinced to move towards manufacturing and it has to be made lucrative. With the present opportunities available and free dole outs made to them for political gain, the labour is becoming lazy and does not want to put in hard work.

Skilled labour has become very scarce and hard to find. This is especially true in case of SSI Units. We hear a lot about unemployment in the country but on the contrary, we find it very difficult to find labour. The Government has set up ITIs but there is not enough awareness among the labour class about the same.

July 2015

What are your suggestions for better productivity?

Lean manufacturing, skilled dedicated labour and intricate planning is the key to better productivity. How can India compete with the global Engineering market? India is already competing fairly well in the Global Engineering

Market. While our qualities are being appreciated, our prices fall on the higher range because of the higher costs of raw materials and labour. So, while the world assumes us to be cheap labour, it is not the case. It is disheartening to see that industries receive no rebate in terms of internet services, electricity and water. In turn, we end up paying more than the regular prices. In some cases, we have seen that the end price of a Chinese product with the same quality as ours is less than our BOM cost. What are the challenges that you face on a regular basis while dealing with the government authorities and how can they be eased? Dealing with the government agencies has never been an easy ordeal for any industry. The corruption and the bureaucracy arerampant inspite of having all documents and processes in order.

The government has made lot of processes online now but still there are loopholes where the work moves forward only after we meet the officers in charge. The onset of GST regime, proposed to be introduced from April 2016 is expected to make country wide transactions easier. Do subsidies reach the industry? We have heard of all the subsidies that the Government has to offer and some of them are very encouraging and lucrative. But the process involved in getting the realisations of such subsidies is a big challenge. What is your take on our Prime Ministerâ&#x20AC;&#x2122;s urgenot to see India as only a market but to see every Indianâ&#x20AC;&#x2122;s potential? We Indians are a very intuitive, intelligent and creative race. Our basic understanding of things is very strong but we lack the discipline that is seen

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in other countries. We also tend to go with the existing flow rather than innovate to change for the better. This is what pulls us back in the global league. If we could inculcate discipline and the drive for betterment in our manufacturing, we would definitely be a force to reckon with. At TISA, we are constantly trying to innovate and at present our effort to increase the quantum of export turnover is being achieved so. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? It must be noted that neither can survive without the other. Foreign investors bring in the capital, technology and employment opportunities to our shores. And while initially they do not source from India, slowly they have to indigenise their supplies to minimise the costs. And if the quality matches to their satisfaction,

they might also use the Indian SMEs to source their global requirements. This leads of development of the Indian SMEs – technology wise as well as the growth of the company. So while strengthening the Indian SMEs is vital, inviting more investors to the country is also beneficial to our markets. How far has PM’s “First Develop in India”, reached out to the Manufacturing Sector? The Indian mindset of not putting in an effort to break the mould has to change to make them look at Indian manufactured products as a replacement to imported products. We have the capability to make the imported products better at a very reasonable price. Companies should encourage their employees and provide incentives for looking at alternate sources of supply of tools required. Thus we can be self sufficient and also can develop the Indian Manufacturing industry.

As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? As mentioned earlier, the government should set up more ITIs and encourage the youth to hone their skills in the field of their choice. There are ample opportunities in the ever growing manufacturing sector in India and there are jobs for everybody. It is just that the people need direction and this must be taken up at the school and college levels by educating the youth about the career options and job opportunities available.

behind the science but they are incapable of applying it in the practical world. Many young entrepreneurs fail when they are unable to apply the theory to practicality. So firstly, our education system must impart more practical education to the students. Secondly, every stream must polish their students with the basic entrepreneurial skills like accounting, marketing, risk mitigation and business planning. It would also be helpful if the government can setup centres and employ consultants who can guide the fresh graduates with their business plans and the feasibility of the same.

The steps Government should take to develop entrepreneur skills in young engineers from the academic level?

How far are the Government schemes for women entrepreneurs actually helping?

Indian education system is hailed to be one of the best in the world. But, somewhere we are lacking in the practical part of imparting education. The students know the theory

As indicated earlier, availing the Government subsidies is a challenge in itself. While, there are lot of schemes, the awareness is low and so is the encashment of subsidy.

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July 2015

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Automation is the Future of Manufacturing

Ravi Mahadeokar Managing Director, Summit Engineers Mr. Ravindra Mahadeokar who has completed his B.E.(Mech.) from Mumbai University and M.E.(Machine Design) from Shivaji University also has Export Marketing certificate from CBI, Netherland and Strategic Business Training from GIZ-IHK, Germany. He is running the company, Summit Engineers and Consultants Pvt. Ltd., since the last 18 years and has collaborated with the German company Strama MPS since last four years. He has also contributed in the course developments in Mechatronic subject in University level in the capacity of founder secretary INCOMECH (Indian Cluster of Mechatronic). When interviewed by MART, he observes that since most of the manufacturing is managed through the MSME sector, the policies of the Government should be promoting the entrepreneurship amongst youths, followed by financial supports in the initial period.

The prospect of Make in India. It will boost the domestic manufacturing industry and attract foreign investors to invest into the Indian economy. However, we, domestic industries must get appropriate support from the Government under this programme. Would you look at expanding the products you manufacture locally? We have formed JV with one German company from Straubing, Strama-MPS Maschinenbau GmbH &

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Co. KG to form a separate company named Strama Summit Machinery Pvt. Ltd. in India under this route. We are planning to bring German Technology of automated manufacturing/ assembly and testing solutions to India. With the new company 70-30 shareholding we also intend to support Strama’s world-wide infrastructure in China, Brazil and USA. Is the focus on Import substitution or Export promotion? From Indian perspective, we

certainly will like to increase our forex reserve so they will encourage exports. At the same time will also insist for the reduction for imports on specified goods there by savings on the outflow of forex. From our perspective, German Automation technology products are needed in our industries, but productivity wise and economically they are out of reach as the ROI is more than five years. Our domestic consumption of industrial goods is not very high compared to China or USA. With Stram’s entry with us, we have plans

to offer German Technology products with Indian price! What are the steps that the Government should take to promote manufacturing in India? India ranks low on the “ease of doing business index”. Labour laws in the country are needed to make friendly. India’s ailing infrastructure scenario and defunct logistics facilities need to be improved quickly for the country to achieve an elite status as a manufacturing hub. The bureaucratic approach of government authorities must

July 2015

India’s ailing infrastructure scenario and defunct logistics facilities need to be improved quickly for the country to achieve an elite status as a manufacturing hub. We must improve transport networks through better road, rail and, water transportation apart from the aviation sector.

change. We must improve transport networks through better road, rail and, water transportation apart from aviation sector. Most of the manufacturing is managed through the MSME sector. The policies of the government should be promoting the entrepreneurship amongst youths, followed by financial supports in the initial period. What are your suggestions for better productivity? Now the Industrial sector in India is maturing. From prototype to batch and Batch production to Mass production is achieved by most of industries. Some are following strategic routes and some are following conventional methods in achieving the productivities. However looking at the increasing demands, AUTOMATION will be the key need in coming years. Rather than doing a process automation or specific operation automation, we will have to take integrated automation approach. Also our automation migration strategy must be well defined and must be followed in timely manner for better results. How can India compete with the global Engineering market?

July 2015

India is a country rich in natural resources. Here skilled labour is easily available at reasonable hourly rate as compared to Europe or USA. As compared to China we speak English which the main advantage for us. With Asia developing as the outsourcing hub of the world, India is soon becoming the preferred manufacturing destination of most investors across the globe. This will also make us more competitive. Problems faced while dealing with the Government authorities and how they can be eased. Since our company is an established enterprise, our problems cannot be compared to new entrants. But by and large corruption by the Government authorities is the main problem we face apart from the interim financial assistance or soft loan schemes from government or banks. Hope to get better relief in coming months. Do subsidies reach the industry? The rules and paper work is much more for getting the subsidies. Many times entrepreneurs waste their major time for the same and start losing the involvements in the running business or by paying excessive money to the agents

to the tune of 25% who helps to get subsidies. What is your take on our Prime Minister’s urge not to see India as only a market but to see every Indian’s potential? It is true. But the skill requirement available in India cannot be directly employable! So to make it more employable we need to take necessary steps immediately at various levels. Because of the population, everyone is looking India as a huge market which is correct but at the same time it cannot be overlooked on the young people and aspiring entrepreneurs who must be supported. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? Defence sector, Aerospace Industry, Ship Building Industry, Bio Medical sector and Chemical sector are the preferred and immediate attention sectors for the Investment from foreigners. So obviously SME’s are also needed in the same field. How far has PM’s “First Develop in India”, reached out to the Manufacturing Sector? Not reached to the SME sector.

As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? It will be phenomenal growth we can expect. In the next 20 years we can develop with double digit if the dream of Make in India comes true, supported by appropriate changes in the system. The steps Government should take to develop entrepreneur skills in young engineers from the academic level. First identify what industries want and then transfer the skills to young engineers. In today’s scenario, fresh graduate cannot be entrusted with the responsibility. Industries spend at least 8 to 10 months on training that youngster so that he will start getting the returns. Many times this exercise gets waste! How far are the Government schemes for women entrepreneurs actually helping? The schemes for empowering women are really good. They need to be spread amongst the young women who are in the final years.

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Make In India: Automotive Component Manufacturing SMEs Compete by Robust Implementation of ISO/TS 16949:2009

Saravjit Singh Principal Consultant, Pushkarna Consultants

The author Mr. Saravjit Singh is a B.E. in Mechanical Engineering and an M.B.A. in Marketing. He has 46 years of experience in engineering industry, consultancy and teaching in the areas of TQM and Lean Manufacturing. He is a prominent Editorial Advisory Board Members of MART and has been regularly writing columns on Quality Management. Currently, he is the Principal Consultant (Automotive and Farm Equipment Verticals) with Pushkarna Consultants. You can seek his advice on Make In India at http:// saravjit-singh.strikingly.com For engineering SMEs, a key area for growth is the Automotive Component Sector. Ease your entry by getting ISO/TS 16949:2009 certification

The website www.makeinindia.com is a compilation of opportunities now open to the engineering industry under Make in India. Twenty-five sectors have been identified that will fast track growth of Industry. Two goal of Make In India are to achieve the following by year 2022:

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1. Increase the share of manufacturing from 16% to 25% of GDP 2. Create 100 million additional jobs in manufacturing Make In India is moving to improve the ease of doing business. This is being done by simplification and rationalization of rules and regulations, easing availability

of finance, allowing higher FDI, and fast tracking sanctions. I am of the view that for SMEs a promising area for high growth is the Automotive Component Sector. Look at past results. Exports of auto components increased at a CAGR of 17% during 2008-13, reaching $9.7 Billion in 2012-13. This growth is likely to accelerate exponentially due to initiatives being undertaken

under Make In India. Rising cost of labour in China is also likely to make Indian engineering goods more competitive. Some highlights of the attractiveness and opportunities of this sector are shown in Table 1. What SMEs need for entry into Automotive Component Sector:

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Automobile Component Sector Attractiveness India is becoming a global hub for sourcing auto components By 2020, India expected to be the fourth larger automobile 2 producers in the world. We are also close to key automotive markets like the ASEAN, Japan, Korea and Europe.  3 We have cost competitiveness in many engineering areas. Our labour costs are lower than in China– giving us an edge. 1

Opportunities

Table 1: Automobile Component Sector Attractiveness and Opportunities

1. Basic needs: Must be a genuinely lean manufacturer. This necessitates developing a top down quality culture, practicing continuous improvement, and having genuine respect for all internal and external customers.This will enable delivery of superior quality, zero defect parts and just in time supply. This aspect is not being covered in this feature. 2. Highly desirable: ISO/TS 16949:2009 certification. We will be covering essential knowledge about this quality management system in this article. 3. Desirable: a. ISO 14001 – Environmental quality management system certification. b. OHSAS 18001 – Occupational health and safety system certification. Government of India offerings for SMEs

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Global tier one suppliers are stepping up procurement from India. This is a big opportunity for our tier twosuppliers. High demand areas for tier two suppliers: Engine and Engine Parts • Common rail engine components • Turbochargers to boost power and improve fuel economy

Transmission and steering parts Gears, housings and clutch components Suspension system parts Braking components Forgings and sheet metal components

1. Access to the patent pool and reimbursement of technology acquisition costs up to a maximum of Rs. 20,00,000. This can help enterprising SMEs to enter high tech areas. 2. RBI norms are being liberalized to enable banks to invest in venture capital funds that focus on SMEs.Loans to SME manufacturers is also being made apart of priority sector lending. 3. 100% FDI under the automatic route in the auto components sector. NRIs who want to participate in Make In India can take advantage of this facility. A characteristic of the global automotive industry is that most vehicle original equipment manufacturers (OEMs) and their tier one suppliers followa specific quality management system standard– ISO/TS 16949:2009. Complying with this standard enables them tocompete successfully in a crowded market. This standard

requires the use of specifically developed core tools, which are APQP, PPAP, FMEA, MSA, and SPC. Use of these tools enables the industry to increase profitability through concurrent engineering, continuous improvement, variation reduction and proactive risk avoidance across the supply chain. Entry as tier one and tier two supplier Tier one suppliers are those who directly supply components and assemblies to OEMs such as Ford, GM, BMW and others. Direct entry of an SMEas a tier one supplier to OEMsis difficult because of the required high level of capabilities to design and develop technology rich, reliable, cost-effective components that go into modern cars. The best way to become a tier one supplier is to set up a joint venture with existing tier one supplierlooking for a partner for entry into India.

Tier two suppliersprovide parts and components to tier one suppliers. Tier one supplier is responsible to his OEM for the quality of parts and components they buy from tier two suppliers. For a tier one supplier to secure orders for automotive parts and components from atier one supplier.it is desirable that it has an ISO/TS 16949:2009 certification. This gives the client tier one supplier added confidence in the SME who wants to become its tier two supplier.Following an identical quality management system has a big advantage for both. What is ISO/TS 16949:2009? ISO/TS 16949 was developed by the International Automotive Task Force (IATF) and the ISO technical committee. This technical specification combined previous national automotive quality standards such as QS-9000, VDA 6.1, EAQF 94, and AVSQ. Purchasing a copy of the

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standard is your first step in understanding what it is all about. The standard details the processes you will need to put in place in order to meet the requirements of ISO/TS 16949:2009. ISO/TS 16949:2009 specifies the requirements of ISO 9001 for automotive production. This has become a globally accepted quality management system requirements document that is followed by almost all OEMs and their suppliers. Since a common quality management system is being followed by all OEMs, this makes it easier for a supplier to develop, produce and supply new parts and components to different OEMs at a faster pace than would be otherwise possible. Many engineering firms, which are not in the automobile industry, now follow this standard because of its proven capability to satisfy customers through continuous improvement, proactive error prevention

and reduction of variation and waste. Principal requirements of ISO/ TS 16949:2009are shown in Figure 1. Why ISO/TS 16949:2009 is important? As said earlier, most leading OEMs and their tier one suppliersprefer to work with tier two companies that hold ISO/TS 16949:2009 certification. This enables all parties to adhere to the strict technical specifications laid out in this standard. At the time of certification for ISO/TS 16949:2009, you have to demonstrate that you have a systematic approach to quality management specific to the automotive industry. Once you have put processes and procedures in place to achieve this, the standard then asks you to review and improve your system to ensure on-going best practice and a commitment to

continuous improvement.

treatment or galvanizing.

Obtaining the ISO/TS 16949:2009 certification demonstrates that your company has met the quality management system requirements to create a process of continuous improvement with an emphasis on defect prevention and reduction of variation and waste in the supplychain. Periodic external audits by authorized auditors are mandatory. These audits ensue adherence to the standard, with evidence about continuous improvement and customer satisfaction. This is necessary, since survival in the demanding vehicle market depends on delivering highly reliable fail proof products that fully satisfy your vehicle user.

To summarize, ISO/TS 16940:2009 helps automobile component suppliers in the following ways:

ISO/TS 16949:2009 technical specification is implemented at all geographical locations of manufacturers and suppliers of products, production materials, and services such as heat

1. It helps assure that your output meets customer specifications. 2. Assure that the quality system is consistently implemented and verifiable. 3. It supports continuous improvement of the companyâ&#x20AC;&#x2122;s ability to meet customer needs. This is necessary to match customersâ&#x20AC;&#x2122; changing needs, and also counter competitorsâ&#x20AC;&#x2122; own improved performance. ISO/TS 16949:2009 is a comprehensive set of rules and a total business system in itself. The approach of this business system is elegantly covered in the reference manual Advanced Product Quality Planning and Control Plan(APQP).

Figure 1: Principal requirements of ISO/TS 16949:2009

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July 2015

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Collaborations must happen between Indian SMEs & Global Firms

Mohini Kelkar Managing Director, Grindmaster

Mrs. Mohini Kelkar became Production Engineer in 1981 from the reputed VJTI Institute in Mumbai. She is one of the few early Lady Production Engineers in India. She, together with her husband, started business of manufacturing the machines in 1984. Started in a small workshop, Grind Master is now a group of 4 companies where Mr. & Mrs. Kelkar developed several concepts and manufactured machines which can be also called as “import substitutes”. When interviewed by MART, she observes that to be globally competitive, we need to adopt “Robust” processes and also that we should encourage systematic R & D and innovation for products as well as manufacturing processes.

The prospect of Make in India. We welcome this initiative. For our Company, we say, “Make in India-for the world”. Due to our export thrust and the world class technology, we export more than 50% of our manufactured machines. Would you look at expanding

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the products you manufacture locally?

substitution or Export promotion?

Due to this positive sentiment, many worldwide machine manufacturers are focusing on India Market. Hence there is an opportunity to collaborate with them for mutual benefits.

Grind Master has been making Import substitute machine since 1986. We have indigenously developed a wide range of import substitute machines for polishing in Cookware Industry, Descaling & Belt Finishing for wire rod, tubes &

Is the focus on Import

bar manufacturing industry and Deburring Machines for Automotive. All these machines are tremendously useful to the user industry and help them to be more competitive and thus help them export. Besides this, we export Microfinishing machines for

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The business challenges for both male entreprenuers and female entreprenuers are identical in the Manufacturing Industry.

crankshafts and camshafts in a very big way to China and we compete with German and Japanese companies for this. What are your suggestions for better productivity? The selection of right tool and the process is as important as the machine being used for better productivity. Also, simple machine loading automation does not cost much and at the same time helps achieve the productivity. How can India compete with the global Engineering market? We should encourage systematic R & D and innovation for products as well as manufacturing processes. To be globally competitive, we need to adopt “Robust” processes. By Robust process, I mean the process which can

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achieve the required results consistently and without operator dependence. Many times, companies take a view that such processes are more expensive, but actually they are not. If you consider the cost of rework and rejections and the cost of lost production, the Robust Machines, Tools & Processes always generate better business and profits. Problems faced while dealing with the Government authorities and how they can be eased. It is necessary to make fundamental changes in the procedures followed by Govt. authorities / Public Sector. These should be formulated on the basis of “Ease of doing business”. Secondly, several public sector companies which are making losses need to be privatised

or at least should be given the targets of outsourcing from the private sector. Which is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? I think both. A good solution is that SME collaborates with Technology Partners from abroad. Further, they should not blindly copy the foreign technology but develop the technology together with these partners to suit Indian market. This is exactly what my Company Grind Master did. How far has “First Develop in India” by our PM, reached out to the Manufacturing Sector? I think it is slowly spreading. I fully agree with the thought of “First Develop in India”. The Indigenous Manufacturing Technology Development is absolutely essential for

manufacturing globally competitive products. As pointed out by our PM, in employing the youth of India that consists of about 65% of Indians, what kind of growth is possible in the manufacturing sector in the next 20 years? Manufacturing sector in India will certainly grow and for this growth, they will have to keep world market in vision. This fact has created lot of R & D & Innovation opportunities as well as Technology based business opportunities for the youth of India. As a woman entrepreneur, what are the challenges you face while dealing with the OEMs? It is now high time that we stop comparing Woman and Man Entrepreneur. Actually the business challenges for both of them are identical.

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Taxation in India should be Industry-friendly

Tushar Mehendale Managing Director, Electromach India

Since 1999, Mr. Tushar Mehendale, a qualified Mechanical Engineer with an MS degree from US in Manufacturing Systems Engineering and Engineering Management, has committed to a single cause- ‘to make ElectroMech the biggest and the best’. He is actively involved in the company’s diversified areas from top level management, operations, R & D, to HR & Sales process. Being interviewed on the prospect of the‘Make in India’ campaign, he said though the branding has reached to the fullest, the complete revamp must happen from the basic education system to infrastructure development to multimodal transportation. More from the interview follows:

The prospect of Make in India . “Make In India” is a rallying call for the global manufacturing industry and is being marketed well. India is being looked upon once again as a country that can emerge as a leader on the manufacturing front globally. With the Modi Government spearheading

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the “Make In India” campaign that aims to project India as ‘the’ place to be, action on the manufacturing front is definitely going to be interesting. For us in the manufacturing sector in India, the current size of the Indian market is tiny when compared with what

exists in countries like China, Germany & Japan. If the “Make In India” campaign succeeds, then we are potentially looking at a substantial ramp up in the domestic consumption of capital goods. This will definitely lead to good economies of scale which are currently missing in India. India desperately needed a shot in its arm to boost the

manufacturing sector which apart from being a major employer in the economy is also responsible for having a trickle-down effect on the services industry. More investments in manufacturing mean more requirements for cranes. We are expectantly waiting for these investments to come in so that the bad

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patch, through which the economy has been going through, can be put behind us.

Is the focus on Import substitution or Export promotion?

Would you look at expanding the manufacturing faculty?

Since our inception, we have always believed in making in India. Much before the campaign was launched, Electromech has always held that we have the technology, ability as well as the skills to create cutting edge products and solutions in the country.

The current positive sentiment has been translating into movement on the ground. Many projects that had stalled for a long time have been picking up. This has resulted in a surge in demand from various sectors. With our manufacturing facility in Pirangut, near Pune, and a capacity to produce 1500 cranes per year, we are well placed to handle this surge. As far as the product portfolio is concerned, we manufacture a diverse range of Cranes and Hoists for a variety of applications across numerous industry verticals. These include Single Girder & Double Girder Cranes, EOT Cranes, Gantry and Semi-Gantry Cranes, Jib Cranes, Wall-Travelling Cranes, Light Weight Cranes, Goliath Cranes, Explosion-Protected Cranes, Tower Cranes and Underslung Cranes. The company also manufactures Special Purpose Cranes such as Stacker Cranes and Tunnel Mucking Systems that are used for specialized applications in various sectors and industries. With this in mind, we are well placed to meet demand for material handling equipment for any application. In addition to this, through our association with ABUS, Stahl and Zoomlion, we can offer the widest range of solutions as required by our clients.

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What are the steps that the Government should take to promote manufacturing in India? A lot of things need to be done to ensure that “Make In India” succeeds. Smart and sleek looking branding campaigns can only generate interest and pique the interests of the global community. However, the realities on the ground need to change. If one is to look at a substantial boost in the manufacturing space, then the first and foremost reforms need to happen on the taxation front – both direct as well as indirect. The so called “tax terrorism” being supposedly unleashed on foreign companies needs to be looked into and issues need to be addressed so that the image of the country gets a positive makeover. Similarly the promised GST regime needs to come into effect as planned, because any manufacturing industry thrives on economies of scale and the current indirect taxation regime precisely thwarts this from ever occurring in India. Then moving on, the basic requirements of the industry–land,

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electricity and transportation infrastructure–need to be addressed on priorities. Today investors find it extremely difficult to get land for their industrial projects that is well connected by an efficient road network, is legally straightforward to buy and is available for a reasonable price. Similarly issues related to supply of power–quality, quantity and ability to process the connection in the shortest possible time, need to be resolved. Everyone who has ever set up a factory in their life knows the difficulty associated with getting access to this basic requirement. Thirdly, everyone is aware of the acute lack of a robust road infrastructure that can effectively allow quick

movement of manufactured goods between the factory and the end users. Multimodal transportation need to evolve in the country on the same level as those that exist in developed countries. If as a country we are able to remove all the above inefficiencies (which incidentally have been very effectively addressed by China), then only can the “Make In India” campaign become successful. What are your suggestions for better productivity? India has quite a lot of ground to cover to become a truly global manufacturing hub. For this to happen, productivity in the economy needs to increase

to a large extent. Bottlenecks right from our basic education system to infrastructure need to be addressed for us to achieve such a position. Red tapism and instability in the Government further add to the woes of the manufacturing sector. Further, the investment environment needs a lot more confidence inspiring measures – ambiguity in taxation laws and application of retrospective taxes hurt the confidence of investors. For India to be a global manufacturing hub, this kind of uncertainty needs to be done away with to create an environment that can sustain growth in the long term. The steps the Government

should take to develop entrepreneur skills in young engineers from the academic level? While India has an immense talent, there is a need to foster the same. Skilled manpower development is yet another challenge which needs to be addressed. The possibility of a tie-up with institutions overseas can be a good business proposal in this regard. India has gigantic technical talent, reputable manufacturing base and low labor rates. These factors act as added benefit towards becoming an export hub for the Middle East and South-east Asian markets. India could easily become a future R&D & engineering hub for global majors owing to these factors.

The “tax terrorism” being supposedly unleashed on foreign companies needs to be looked into and issues need to be addressed so that the image of the country gets a positive makeover.

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July 2015

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India Gears up to Create 90 Million Domestic Job by 2025

Harish Agarwal CEO, Supreme & Co

Mr. Harish Agarwal, CEO of Supreme & Co. (P) Ltd. is involved in providing a range of products, services and solutions for Electrical Transmission & Distribution and Telecom industry. He is also the Director of Web Spiders (I) Pvt. Ltd. and the Chief Conveyor of 5th IEEMA eastern regional summit for ‘Konnect North-East’ at Guwahati. In conversation with us, he talked about the current positive momentum generated by the ‘Make in India’ campaign and what should follow afterwards. He strongly emphasized upon the need of capturing the optimist outlook of entrepreneurship among the youth to manufacture ‘zero-defect’ products in future. Excerpts:

The prospect of Make in India. ‘Make in India’ is designed to facilitate inward investments and build the country’s manufacturing infrastructure. It includes plans to make doing business in India easier, more efficient and transparent. Manufacturing currently accounts for only 15% of India’s gross domestic product (GDP) and the Government wants to raise that to 25% by 2022. The Modi administration is committed to transform India into a global manufacturing hub, while ensuring that manufactured goods have ‘zero defect’ and ‘zero

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effect’ on the environment. With ‘Make in India’, the Government aims to eliminate unnecessary regulations, shorten bureaucratic processes, upgrade infrastructure and open up new sectors to foreign direct investment (FDI). Would you look at expanding the manufacturing facility? Right now we see a vision building up of consciousness. We still have along way to go to see things on ground on almost all parameters viz. ease of doing business, enabling eco-system infrastructure; cost of finance etc. We have to wait and watch.

Is the focus on Import substitution or Export promotion? The key focus of Make in India campaign is to invite businesses not only in India but across the world to invest & manufacture in India. The purpose of Make in India campaign is (a) Job Creation (b) Economic Development (c) Global Recognition I think this programme seeks to manufacture in India what is being imported at present and also to invite companies from

outside India, tomake India their manufacturing base for exports. What are the steps that the Government should take to promote manufacturing in India? Five steps that the government should take to promote manufacturing in India: a. Creating healthy business environment will be possible only when the administrative machinery is efficient. India has been very stringent when it comes to procedural and regulatory clearances. A business-friendly environment will only be created if India

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can signal easier approval of projects and set up hassle-free clearance mechanism. b. To make the country a manufacturing hub the unfavourable factors must be removed. We are still to see anything concrete on simplification of complexity brought into administration of taxes in last 10 years. c. India’s small and mediumsized industries can play a big role in making the country take the next big leap in manufacturing. We can’t ignore the fact that new generation is developing an aversion for entrepreneurship. d. Industry needs a far more

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facilitating environment than what we have today. e. India has to be better prepared and motivated to do world class R&D. The Government must ensure that it provides platform for such research and development. What are your suggestions for better productivity? The productivity improvement will come about only if we focus on production of zero defect quality goods, in a cost effective, environment friendly manner.The Ministry of Commerce and Industry has already suggested that the Government departments, including public sector units,

formulate action plan to improve productivity in line with the ‘Zero Defect Zero Effect’. The National Productivity Council (NPC), under the Department of Industrial Policy Promotion, has also recommended setting up of a productivity improvement committee to prepare the plan of action for 2015 and also suggested that the ministries and PSUs organise special talks, discussions, meetings and workshops focusing on problems being faced on the productivity front. The Prime Minister exhorted the youth to become entrepreneurs and manufacture ‘zero-defect’ goods with a view to making

the country a global export hub. How can India compete with the global Engineering market? In global market our strength is customised engineered solutions. India has to work on that. Right now, India faces a lot of external factors which puts them at a huge cost disadvantages vis-à-vis China for mass produced goods. Problems faced while dealing with the Government authorities and how they can be eased. Deficient infrastructure, inhospitable business environment, corruption, poor quality of human resources, problems with access to timely

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and adequate credit, difficulty of getting land, high burden of taxation and restrictive labour regulations are the main challenges that we face in doing business in India. A study undertaken by the World Bank on ‘Ease of doing Business’ showed India sits at bottom of the pile at Rank 142. Significant change would be required both in policy conceptualization and implementation to support manufacturing growth. Governments at both the centre and the states need to step up their efforts, going forward. This would involve clear industryspecific policy guidelines aligned the needs of each sector. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? The government’s ‘Make In India’ campaign will not take off unless the country’s small and medium enterprises can rise up and provide a robust supply chain for foreign investors.By localising the products instead of importing, significant cost advantage can be achieved which can be passed on to the customers. Designing as per

local needs is critical to succeed. The real challenge in Indian manufacturing is not just the usual argument about tough labour and land laws and poor infrastructure, the real big barrier is the lack of a robust supply chain ecosystem. A robust SME sector is necessary to get the true benefits of Make in India and the Government can help enhance SMEs’ capabilities, ease processes and make financing easier and cheaper.

next 20 years?

India has set for itself an ambitious target of increasing the contribution of manufacturing output to 25 per cent of gross domestic product (GDP) by 2025, from 16 per cent currently. India’s manufacturing sector could touch US$ 1 trillion by 2025, according to a report by Mckinsey and Company. There is potential for the sector to account for 25-30 per cent of the country’s GDP and create 65 per cent of the country’s up to 90 million domestic jobs population aged below 35. by 2025. The Government of Job opportunities need to be India has an ambitious plan to created for the youth. Large locally manufacture as many as companies in the manufacturing 181 products. The move could sector usually bring in help infrastructure sectors automation. It is the small and such as power, oil and gas, and medium-scale enterprises that automobile manufacturing generate jobs. The ‘Make in that require large capital India’ project involves attracting expenditure and revive the Rs investments from foreign 1.85 trillion (US$ 29.74 billion) companies to manufacture Indian capital goods business. here and also to give a boost to The steps Government should the local SMEs. “Make in India take to develop entrepreneur is about manufacturing and skills in young engineers from SMEs”. the academic level? As pointed out by our PM, in To strengthen the employing the youth of India entrepreneurial ecosystem in that consists of about 65% of each state the Government our population, what kind should launch Technology of growth is possible in the Entrepreneurship programme, manufacturing sector in the

which will promote technology entrepreneurship and nurture the culture of entrepreneurship in the region. The programme should be offered as an elective to the 3rd and 4th year of engineering students and should be delivered through a technology platform. It will help students to develop several key competencies, offer a broad management/entrepreneurship education, and enable them to be more innovative and selfconfident in whatever careers they choose to undertake on successful completion of such programme. The programmes will help to scale up the entrepreneurial talent among the young people, which will make them wealth creators and have a social impact by creating more employment opportunities in the country. A closer connect between government, academia and the industry can play a larger role in supporting the growth of new and emerging businesses and assisting existing enterprises in reaching the national goal.

India has to be better prepared and motivated to do world class R&D. The Government must ensure that it provides platform for such research and development.

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July 2015

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Challenges of Make in India and the Advantages

Manish Kothari Managing Director, Rhino Machines

Mr. Manish Kothari, Managing Director of Rhino Machines, after graduation in April 1991, was selected in L&T Hazira and worked as Plant Engineer for six months, before joining his father’s Foundry Project & Consultancy business. Rhino Machines was formed in 1991 with him as the Sole Proprietor. Trained under his father Mr. R C Kothari, he was exposed to the best of technology with visits to GIFA very early in 1994, and was involved in forming the most important relationship with Fondarc. While reaching out to the readers of MART, he says that the amount of work our Indian scientists do around the world and in India, if channelized, supported financially, will reduce the licensing and technology fees, and for sure may reverse the trend into an earning.

After having spent 15 days in Germany, Switzerland, Italy in the latter half of June, visiting an international trade fair as a participant – GIFA 2015 in Dusseldorf, there are very interesting observations – as this visit was looking more from Make in India and Made in India perspective. Throughout the visit have been trying to find where we are different, and where we are better, what we can adapt

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from these advanced and stable countries. The same are very relevant in meeting the challenges of make in India. Infrastructure This can have several areas including mass transport, city transport, rail network, power management, water management and such basic amenities. We today have developed so many mass transport systems

and networks, however, we are still unable to get a common commercial platform for the same. For example, with one ticket in Dusseldorf, we can take train, bus, tram, metro without looking for another ticket. In Delhi we need a separate ticket for DTC, for Metro, for Local…? Imagine the increase in efficiency and utilisation of time once we start implementing these. It is not only increasing the infrastructure but sewing them together which is equally and

more important. While it is easy to say that infrastructure is missing in India, if we try to copy the infrastructure without thinking in totality, it may not give the desired results without seamless integration. Machinery We are using lot of old and outdated machinery for our manufacturing activity. Even the process of manufacturing

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With one ticket in Dusseldorf, we can take train, bus, tram, metro without looking for another ticket. In Delhi we need a separate ticket for DTC, for Metro, for Local…? Imagine the increase in efficiency and utilisation of time once we start implementing common commercial platform for these.

is outdated in many cases. It is essential to upgrade ourselves with the more efficient, but not necessarily the most automated machinery to get the best efficiencies. We continue to get low cost 2nd hand machines from Europe and other advanced countries, which are robust, but this does not allow our local machinery manufacturing industry to grow and improve. It is important here that there is a partnership between the manufacturer and user, duly supported by the government to produce more and more machines inside the country, so that the economy and liquidity stays within. This is very visible in case of China, where today they have become net exporters and do not import probably any machine. Even they could get the low cost old machines, but the govt has supported local manufacture and so has the industry. Humanware - Manpower – Skill Probably this is the biggest difference and game changer. We in India have a tremendous

July 2015

advantage in multiskills, multi talent, intelligence, language, management skills supported by our very rich and strong cultural heritage of inclusive living. However, our education system has taken a completely wrong direction over the last few decades. Instead of focussing on skill and vocational training, we have focussed more only on higher education, leaving a very vast widening gap in the working level. During my visit and discussions with German, Swiss & Italians I find they start to nurture the skills from the age of 14, allow the students to find their right course, and then grow further. During visit to one of the VET Schools in Winterthur, Switzerland arranged by our knowledge partner SkillSonics, I realised where we need to go. The facilities for training, methodology and system were probably not available in our engineering institutes too. We need to focus on higher practical teaching with a combination of theory, which unfortunately is not happening

today. Without a good and well skilled force, we cannot grow. It is pertinent to say that there is also a social barrier today as we are always expecting the skilled working persons to be from the “lower strata”. The middle class segment needs to understand that the skilled job is not of a lower social status. It is not necessary that all science students become engineer or doctors? To bridge the gap the skilling has to happen across the society irrespective of the social status. The dignity of labour has to change, and it is only this which can make the Make in India successful. Process knowhow We say that we discovered “0”, we did lot of development in science, mathematics, and it is a reality, however, we never leveraged these to the next level. Process development in our country is considered a huge burden and cost. We are now inviting experts from Europe for providing us support for the process

know how. However, at the same time, we are not putting ourselves together to see that this know how is documented, absorbed and transferred to the next generation. We do possess a tremendous intelligence and can absorb the process knowhow, and need to put together a focus that in few years we should be absorbing the process like a “sponge” and then transferring this through the appropriate channels to one and all in the country. Today even Europe does not have this advantage with the diminishing interest of the new generation and the rising costs to document and leverage its knowledge. We are ready for this and need to structure the same. R&D Done in bits and pieces without a long term focus, our R&D is way behind in the manufacturing industry. The amount of work our Indian scientists do around the world and in India, if channelized, supported financially, will reduce the licensing and

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technology fees, and for sure may reverse the trend into an earning. If we see in the management field today, India is providing management expertise to the top corporates in the world like Microsoft, Citibank, Pepsi, Bosch. This is because we did a lot of R&D in management studies due to our limitations even with our limited resources. If the same is extended to technology like the MOM mission, we are sure to take a lead in the industry. Cost & Data Management – Analytics Fortunately we Indians are street sMart, have great survival skills, cost and fund management skills. We need to get this skill documented into analytics, multiply our knowledge so that we all can get the advantage of becoming cost effective. Over the last 4-5

years, foundries in particular at selling at old prices, reduced prices and found a way to reduce their costs. Had they focussed on this a decade ago and even now before they face the pressure, analyse the cost elements, based on data, with the street sMart advantage we possess, we are sure to compete with the world and make ourselves into a global player with a larger role. Organisation Structure & HR Many of the businesses in India are 1st generation or 2nd generation and do not survive or sustain. We do not recognise the need to invest in HR and Organisation development. In the last 5 years, we at Rhino due to exposure to the global industry and having studied many industries closely could understand this need. One year of the OD exercise revealed that we in India can too work on a structured and more

robust platform provided we invest in time and understand the need for the structured approach. Very soon OD and HR will become very important needs even for the SME/SMB sectors, else they will struggle to grow further and leverage their strength.

Indian Manufacturing Industry.

ISO - TS - Certifications and systems - actual use

Our PM has raised the bar, he

We are forced to use the certifications, since the reliability or credibility of our deliverables is always at a question. We incur huge costs in maintaining the certifications, however, we consider this only as a “paper”. Time has come to understand why these systems are there, and make it part and parcel of our habit. Quality is a habit, not a certificate. Once we realise this, and follow this principle, it would automatically convert into global confidence in the quality and deliverables of the

We need to really see – what is the actual use, and how effectively are we using it. Once again, I would like to reiterate – we are just a step away from making the dream of Make in India into a reality. has brought in the National Character which had gone missing, he has brought in the National Pride of being an Indian. The pudding will be when we convert this into realising this dream. We at Rhino Machines have been on this path for long, have increased our pace by acquiring licenses for newer technologies, investing in R&D, and most recently investing in Skill Development Centre with Swiss VET Structure, as we strongly believe that yes we can do it!! Jai Hind.

We are just a step away from making the dream of Make in India into a reality. Our PM has raised the bar, he has brought in the National Character which had gone missing, he has brought in the National Pride of being an Indian. The pudding will be when we convert this into realising this dream.

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July 2015

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Global Investments in Manufacturing will benefit India

Samir Gandhi Director, Gandhi Automations Pvt Ltd Mr. Samir Gandhi is a Chemical Engineer from Institute of Chemical Technology, Mumbai. He has over 20 years of experience in Entrance Automation & Material Handling equipment Industry. His decisiveness in strategizing and implementing ideas and policies has helped Gandhi Automations to reach newer heights. His visionary effort was crowned with success when the Company started exports in the year 2011. Recently he is steering company’s pan-India sales network. A well respected, renowned professional with innate technical and management skills Samir Gandhi’s approach to business has always been ethical. On being interviewed about the prospect of ‘Make in India’, he said, global investors should come and invest in India, but this will not solely help the manufacturing industry to grow. Individual skill enhancement and motivating entrepreneur skills will fetch long-term success in manufacturing.

The prospect of Make in India. Make in India is a long term vision of our Prime Minister. It is a long term plan and we should have patience, such thing cannot happen overnight or in span of few quarters. All I can say is the intent is right and the Government has been taking

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right steps to achieve vision set by our Prime Minister. In coming years we should see growth of 8% every year. Would you look at expanding the products you manufacture locally? Infrastructure growth was

stagnated in last few quarters which should revive in coming months. We can see companies have been willing to increase their capital expenditure and started setting up new projects and I see good growth in same in next 18 months. We have our R&D team working on some

products and if all goes well, at right time you will see a launch of good product by Gandhi Automations which fulfils customer requirements. Is the focus on Import substitution or Export promotion?

July 2015

Foreign investors are coming back to India. These investors are aware of the potential India has. Labour reforms, fast clearances for projects will add to the investment scenario.

Our import is miniscule. We are focused on export in coming years. By 2020 we plan to earn 50% of revenue from exports. We have 70% market share in domestic market. Earning foreign currency will help in reducing trade deficit. The steps that the Government should take to promote manufacturing in India? I am happy with the way things are progressing. Government has shown the intent to move things faster. Foreign investors are coming back to India. These investors are aware of the potential India has. Labour reforms, fast clearances for projects will add to the investment scenario. How can India compete with the global Engineering market? All such questions have one word answer- Innovation.

July 2015

Problems faced while dealing with the Government authorities and how they can be eased. A single window clearance is required for small & medium scale industries. Big projects will of course take time to show result but I am very positive and we will definitely see growth in corporate earnings in next few quarters. Implementation of GST will make India one market and strengthen overall the ‘Make in India’ programme. What is your take on our Prime Minister’s urge not to see India as only a market but to see every Indian’s potential? India will not benefit if companies manufacture outside India and sell those products in India. This will not help us. Global Business Developers should invest in India; this will generate employment for our youth which in-turn will revive

growth. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? This has to be a balanced act. We cannot rely on foreign companies for India’s growth completely. What I feel is SMEs should target niche products, innovative products and this way we can export product. If India has an innovative offering for the world, in long term these small SMEs will grow bigger. In 1996 Gandhi Automations Pvt Ltd was a small company, in less than 2 decades we are India’s number 1 Entrance Automation and Loading bay equipment Company. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the

manufacturing sector in the next 20 years? Our Prime Minister is a man of vision. He is aware of near term challenges and long term necessities. As I said earlier we cannot rely on foreign companies completely for our growth. Last decade with help of IT sector we could achieve growth rate of 8%. IT sector created employment for our engineers and next big thing could be manufacturing if we handle it properly. The steps Government should take to develop entrepreneur skills in young engineers from the academic level? Nurturing youth to be an entrepreneur is the need, we cannot ignore. Engineering students are given practical exposure in the form of industrial visits but I feel more can be done in this regards.

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GOI must Promote Joint Ventures with Existing Indian Manufacturers

M Krishna Managing Director, KAM AVIDA

Mr. M Krishna is the Managing Director of KAM AVIDA. KAM AVIDA , a group committed to bringing about mechanisation in the areas of cleaning and maintenance, in a country where this task has been traditionally carried out manually, using improvised tools and tackles. Mr. Krishna points out that the positive sentiments are always good for growth and therefore they have plans to make best use of these opportunities by further enhancing the scope of offerings and through greater market penetration.

The prospect of Make in India. Itâ&#x20AC;&#x2122;s a welcome move to refocus on inviting foreign manufacturers to come and make in India. This is the only way that our manufacturing sector can gain greater competence. Would you look at expanding the manufacturing facility? Positive sentiments are always

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good for growth and therefore we have plans to make best use of these opportunities by further enhancing our scope of offerings and through greater market penetration. Is the focus on Import substitution or Export promotion? Our products have traditionally been substitutes of expensive imports. Since the Indian

markets are growing we are currently focussing on scaling up our operation to service much anticipated increase in demand. Further as regard to exports we have been participating in many of the ICBs published from the neighbouring SAARC countries and have successfully executed the few contracts. What are the steps that the Government should take to

promote manufacturing in India? In an open market condition only the best will survive. For an Indian manufacturer (Engineering), it is axis to new technology that will enable them to compete with the rest. Therefore the GOI must directly or indirectly promote and encourage the creation of joint ventures with existing Indian

July 2015

Compliance to various complexities and never ending statutory requirements is not only time consuming but an expensive operations both in terms of man-hours and money, besides, the unpredictability caused by the ambiguity of interpretation. Simplification of these processes with fewer human interventions will greatly minimize the cost of compliance and thus improve our productivity. How can India compete with the global Engineering market? This can only happen when Indian manufacturers enhance their own product quality as an outcome of either through endogenous innovation through R & D up gradation or through joint venture route. Further to add the later will be far easier as we would not be required to reinvent the wheel. Problems faced while dealing with the Government authorities and how they can be eased. We deal with the Govt. authorities in two folds 1. For compliance 2. As a customer. As an authority to that enforces compliance we suggest that the processes to be more automated rather

July 2015

Do subsidies reach the industry? No comments as we are not recipients of any such subsidies. What is your take on our Prime Minister’s urge not to see India as only a market but to see every Indian’s potential. Fully agree with the PM’s sentiments as India not only offers a market in itself but whole basket of competencies and expertise which can be harnessed. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? The reality is a substantial part of our GDP comes from the contribution made by SMEs. It would only therefore be logical to focus on this sector and further strengthen them. Having said this one must also confirm that certain types of business that requires large investments and operational scale will be ideal for large players only.

Rare Earth Magnetic Grills

Coolant Magnetic Separators Circular Gyro Vibratory Screens

Metal Detector

Overband Magnetic Separators

What are your suggestions for better productivity?

than people centric open for interpretation. This will make life a lot more predictable devoid of wasteful activity. Secondly as a consumer the law must be equally applicable to them as it is to any other organization. AS of now they are completely immune to the laws of commerce therefore transactions are extremely one sided with very little opportunities for the recourse against them.

Overband Magnetic Separators

manufacturers rather than inviting and encouraging fully owned multinational to set up shops here.

MAGNA TRONIX

38/2, THIRUVALUVAR STREET, ETHIRAJ NAGAR,WEST MAMBALAM, CHENNAI– 600 033 Tel: 044-24852469/24853803 FAX:044-23719881 EMAIL: magnatronix@yahoo.com

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Basic R&D is the Back-bone of any Development

Sachin Doshi Executive director, Abhijat Equipments

Mr. Sachin Doshi did his engineering graduation from Walchand College of Engineering and he is an MBA from Pune. With 25 years of wide industry experience, he became the Director of Abhijat Equipments Pvt. Ltd. On being asked about the ease of doing business in India, he said till now, permission to start business here requires a lot of paper work with complicated formats. This can be eased with simplified formats and deadlines of every activity. More from this conversation follows:

The prospect of Make in India. The Make in India campaign has caught worldwide attention. The message has been aggressively communicated by the Prime Minister in person in USA, European community, South East Asian countries. It has been well received by Indian Engineering industry. The logo selected for the campaign is also unique and communicates strength and progressive attitude. Would you look at expanding the manufacturing facility?

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We would welcome alliance with interested overseas machine builders to make their products using our manufacturing and technical capacities. Also we are trying to explore the possibilities to work in basic research rather than concentration on only development. Is the focus on Import substitution or Export promotion? We feel that initial focus is to be on export promotion which would obviously and gradually be shifted to Import

substitution. What are the steps that the Government should take to promote manufacturing in India? Infrastructure development, availability of low cost finance, low cost green energy, simple tax structure , incentives on export, subsidy for participation in special overseas exhibitions such as EMO Hannover, METAV D端sseldorf, MILANO etc, rather than general exhibitions. What are your suggestions for better productivity? Better productivity can be

achieved by availability of skilled and cultured manpower, intelligent machines, and fast implementation of atomized or unmanned machines or robotics. How can India compete with the global Engineering market? India has largest proportion of young generation and also is a very large consumer market. Young generation needs to acquire core skills in design, manufacturing, presenting, and multiplication fast to cater for Indian Market first and to cater

July 2015

for out side India demands. This will help creating right mix of resources and products Vis a Vis business requirements. Make in India campaign should be extended to all other fields than engineering industry like IT, tourism agriculture, handicraft, textile, chemical fields for its total effect.

d. Making soft copy submission allowable e. Putting deadlines mandatory for each activity. Do subsidies reach the industry? Yes. It reaches.

What are the challenges that you face on a regular basis while dealing with the Government authorities and how can they be eased?

Our Prime Minister urged the Global Business Developers not to see India as only a market but to see every Indian’s potential. What is your take on this?

Delay in getting required permissions, lot of paper work with complicated formats, unapproachable concerned authorities, most of the times hard copies are required to submit. All these can be eased with

If there is potential, defiantly global business developers will take benefit of it. But, if it is not there, only by urge why should they follow it? We have to first develop those capabilities, strength and then show it to the world.

a. Simplified papers b. Making it compulsory attendance of officials at their offices.

Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India?

c. Performance assement of these officials

Concentrating on SMEs will give long term benefits

to Indian economy. It will strengthen our inbuilt capacity. So I feel first preference should be given to SMEs rather than inviting foreign companies. How far has PM’s “First Develop in India”, reached out to the Manufacturing Sector? Yes. The manufacturing sector always carefully receives such communications and has channels to circulate the inferences of such type messages. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? Make in India initiative is based on boosting entrepreneurship in India not only in manufacturing but also in other sections basically by using new processes, improved infrastructure, new mindset and using them all in new sectors. We

may be enhancing share of manufacturing in GDP up to 25% in next 7-8 years from current level up to 16%. SMEs would continue to grow from start up units to micro industries to medium to large scale units because there are enormous opportunities with the Make in India opportunities. The exact scenario after 20 years may be predictable after the first term of this Government. The steps Government should take to develop entrepreneur skills in young engineers from the academic level? I would recommend that key entrepreneur skills training may include Entrepreneurial qualities - (adaptability of changing roles, clear priorities between business and personal goals, business ethics and culture); Management skills ( KRA setting and monitoring, Leadership and communication techniques); and importantly understanding financial management, its importance, basic techniques of financial management and accounting .

Make In India campaign should be extended to all other fields than engineering industry like IT, tourism agriculture handicraft, textile, chemical fields for its total effect.

July 2015

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Indians Aspire to Make it Big

Somnath Sircar Director, Algonics Systems

Mr. Somnath Sircar who graduated from IIT Roorkee and post graduated from IIT Delhi is the founder director of Algonics Systems Pvt. Ltd. Sircar is a member of Govt. of West Bengal sector committee on IT Hardware and Software. Sircar is a member (past president) of Rotary Club and involved in different social activities. He is also a member of IEEE. He points out that “Ease of doing business” inherently includes the ideas of “ease of entering into a business”, “ease of exiting a business” and “freedom to do mistakes”.

The new mantra:

Prime Minister.

Rule of Law

“Ease of doing business” and “Make in India”, are ideas with which lots of bright young Indians grow up, to make it big into the world. But an idea which frequently hits a hard wall when put into practice driving away the most dynamic human resource and energy to faraway lands with better environment, an idea for which people on foreign shores with roots in India laments at how a life time’s opportunity was lost, has the time come for a turn around? Let’s hope, let’s rise again, let’s try again. We all find a new hope in the call given by the

The basics:

Strong legal system, yes we do have it, but do we have confidence on trying out its effectiveness for a time bound result? Surely, much needs to be done to bring to age a legal delivery system from the manner it used to be done in colonial times a hundred years ago.

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The business and manufacturing activity of all times and all places move on the following intermeshed gears • Rule of law and sanctity of contracts. • Protection of invested capital. • Atmosphere conducive to business growth. • Expectation of future stream of earnings.

Protection of Capital With passing time, business is becoming service oriented and manufacturing is turning capital intensive. When an investor puts in money for an industrial land with

July 2015

Infrastructure to support business growth should be the primary focus area regarding growth. Is it worth declaring industrial parks without existing double lined container movement compatible road links?

the promise that roads, water, electricity connections, clearances and licenses shall be given, what happens if it gets delayed by a year or two? A chain effect of economic and social retardation is set with the biggest effect being loss of confidence. Atmosphere conducive to business growth The growth of business is driven by growth and access to markets. These are hinged on connectivity through roads, rails and ports and inhibited by bottlenecks of crossing state borders. Thus, infrastructure to support business growth should be the primary focus area regarding growth. Is it worth declaring industrial parks without existing double lined container movement compatible road links? Expectation of future stream of earnings Apart from physical infrastructure, the predictability of future profit means, the policies regarding taxation, interest rates, inflation, currency convertibility and other macroeconomic parameters those are factors for ensuring confidence. The Dynamics: “Ease of doing business” inherently includes the ideas of “ease of entering

July 2015

into a business”, “ease of exiting a business” and “freedom to do mistakes”. Global business scenario is dynamically changing at an ever increased pace. We have witnessed sea changes in telecom, in e-commerce, introduction of e-vehicles, renewable energy sources, smart grid concepts, e-banking and e-governance. With individual consumers possessing internet connected smart mobile, the scenario is currently changing faster than ever before. The state’s role can only be to facilitate the change, facilitate the advent of new and even more to facilitate the exit of the old, clean up their legacy to be taken up by the new. Barriers for movingin and moving-out need to be abolished. The freedom to innovate, to experiment and do mistakes with lowest cost in time and money in business is paramount. This can give rise to “Make in India” at a competitive cost and better quality. Government: What to do and what not to: Apart from providing a lawful and peaceful environment, the state’s policies are important not only on the issues where action is required, but more so on issues which need to be left untouched to market forces. The chances of new

better business to come up is maximum only in an environment where stagnating backdated business is free to die fast, thus freeing real estate infrastructure and capital investment to be taken up by new ventures. These are two sides of the same coin and must be encouraged with identical emphasis. Sick industries bleeding the taxpayers with state support or holding up huge real estate makes everyone a sure loser in the end. And in long term, it demotivates the work force to adapt and retrain to global changes. Ultimately it leaves them unemployable at the end. Subsidies, incentives etc, which are costs borne by the taxpayers are to be evaluated for its effectiveness. With the resource and systems required to eliminate misuse of incentive, every incentive scheme bears a large overhead for the state. Similar overhead cost is incurred by the beneficiary due to the formalities, time and energy required to meet the compliance. The small players, who need it more, find it most difficult, due to lack of staff or consultants to make project reports, additional audits and report filings, regular visits and followups and decide against all the trouble to avail complex incentives. It is far easier and effective to reduce cost of doing business directly. Cost for registration, licenses,

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permission fees, and property taxes in business areas where focus is required should be directly reduced. Big v/s Small and Medium: The business world has been regularly impacted by the small start-up entrants. Globally, be it Google, Amazon, or locally be it Infosys, Flipkart, Micromax, Luminous. The dilemma of attracting few big investments meeting their tailor made demands vis-a-vis providing bigger and better field for a large number of SMEs is faced by all policy makers. The more the small players, the better chances of hitting are on a real big hit. Though public visibility of big investment is larger than any number of SMEs, still, the SME sector gives a better employment to investment ratio, including the indirect employments. Thus SMEs can disperse the benefits of economic activities to the lowest levels much faster than a few capital intensive big investments. Of course the presence of big investment in turn, kick starts a vast network SME sector without doubt.

Revenue Focus: Taxation systems should be tuned for doing business easily. Many a times, taxation policies inhibit growth thus reducing the total tax collection itself. In a regime of simple tax laws, revenue gets maximized in absolute terms; while any taxation complexity increases the cost of compliance for any businesses as well as the cost of collection for the state, ultimately reducing net income to the exchequer and resulting in an unattractive investment atmosphere. Systems of various forms, returns, waybills, octrois, entry taxes, various surcharges, however small in value, create road bumps in the ease of doing business. Putting in place effective machinery: The biggest change to human society for the last decade has been the application of Information Technology (I.T.). The same undoubtedly is the biggest weapon in hand of the state to facilitate and streamline business growth. But before making the delivery system I.T enabled, do we have

a yardstick to measure the efficacy of the IT infrastructure? How reliable, available, responsive and user friendly is it? To begin with, all IT enabled delivery should be critically tested to meet the technical standards for smooth transactions. The soft approach: One important role of the government is to sensitize everyone about the need to make â&#x20AC;&#x153;doing business easyâ&#x20AC;? and encourage manufacturing and innovation. Each govt official and staff should feel to be a part of this great revolution. Confidence building seminars and gettogethers should be arranged between industry and government representatives in various dimensions. Regular feedback and discussion channels should be made open. Awards and recognitions should be publicly celebrated. Business conclaves, meetings, exchange of delegates and publicity campaigns may be a part of the same move and above all, the confidence should be rekindled that all is not lost, that there is hope.

Confidence building seminars and get-togethers should be arranged between industry and government representatives in various dimensions. Each govt official and staff should feel to be a part of this great revolution of Make In India.

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July 2015

Plot No. 347A, 2nd Phase, KIADB Industrial Area, Harohalli, BENGALURU-562112 Kanakapura Taluk. Ph: 080-26396461 / 41632962 / 99456 95322 Manfred Maier Email: fenmet@gmail.com , www.fenfemetallurgicals.com Managing Director & COO, HELLER July 2015

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Focus to add more Value, Local Content, Reduce Imports & Promote Exports

P L Muthusekkar Managing Director, NORD India Mr. P L Muthusekkar, Managing Director of NORD Drivesystems India since 2011, holds an Engineering degree in Mechanical Engineering from Bangalore University and post graduate diploma in marketing management. He has 28 years of rich experience in sales and marketing activities, general management, factory management and managing P&L. In the initial years Mr. Muthusekkar has served as General Manager â&#x20AC;&#x201C; SBU for Bonfiglioli India and has great experience of working with Kirloskar Pneumatic & Triveni Engineering. He also worked with Siemens Flender-Graffenstaden as a General Manager, Business unit head and also Factory Manager. He is a member of GLC Council. While reaching out to the readers of MART, he says that the approach and policies of the Government needs to percolate down the line and at all levels. In simple doing business had to be made easier and our focus should be on the core business activities. And Industries has to be close to the Government but away from the policies.

Impact of Make in India

much needed to propel the

the products you manufacture

mode- this year end we will be

mission?

employment and boost the

locally?

expanding our Pune plant by

Impact will certainly be great and will revolutionize the

revenues and to put India on top.

For NORD strategically India is certainly and important growing

manufacturing contribution

How does your company

market and our products goes

to the GDP, the question is

plan to leverage the current

into multiple sectors we will be

how quickly we can get it.

positive sentiment in India?

able to leverage the best. Yes

It is an appreciable initiative

Would you look at expanding

we are already in the expansion

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way of adding exclusive service area and enhancing the stocks. So far only the mechanical & electrical products were assembled in India, now we have commenced assembling our electronic products such

July 2015

At Hannover Messe 2015, India was the partner country and Prime Minister Modi took this as a platform to promote Make In India. During the opening walkabout, Chancellor of Germany, Angela Merkel, and the Prime Minister Narendra Modi visited the stand of NORD DRIVESYSTEMS – who are celebrating their 50th company anniversary this year. The heads of Government took note of economical drive units for servo applications.

variable frequency drives both centralised and de centralized.

better productivity? Better productivity is achieved

Is the focus on Import

when the Work discipline and

substitution or Export

adequate skill set is in place

promotion?

and minimizes the errors on

Focus is certainly to add more value, local content and reduce the imports, parallel promoting

Industries has to be close to the Government but away from the policies. Our Prime Minister urged the

efficiency & better productivity

Global Business Developers

achieved.

not to see India as only a

How can India compete

assessable markets. Electronics

with the global Engineering

is third largest import by India

market? We are already competing in

What are the steps that the

Global level only the stamp

Government should take to

of MADE IN INDIA has to be a

promote manufacturing in

saleable across.

India?

core business activities. And

continuous basis enhances the

exports too- though limited

next to Crude & Gold.

and our focus should be on the

What are the challenges that

market but to see every Indian’s potential. What is your take on this? Absolutely right it should not be a commoditized approach, yes India is a big market but the demographics, market needs vary from country to country like hatchback car is an classic example, so best is to be in the

Skill development, ease of

you face while dealing with

doing business and adequate

the Government authorities

infra supports. We have to

and how can they be eased?

need and explore the value

The approach and policies

sustain not only for long term

of the Government needs to

but also can armoured to rough

percolate down the line and

economic situations.

cultivate the work discipline like Japanese or the German way, this is everyone’s responsibility. What are your suggestions for

July 2015

at all levels. In simple doing business had to be made easier

market place produce to the additions which will help to

Which do you think is

preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? Both are important, it is like asking- you need only the 4s & 6s or 1s and two’s in cricket; today we are in the one day situation thus two pronged approach is better. But the SME’s will respond quickly. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? We are a fortunate country with large size of youth population and we should first make them employable, also in this we need to take into account the woman power too. Accordingly the policies need to be redrawn.

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Import Substitution: A necessary for Price Competitive Market

P K K Rao Managing Director, Heidelberg India Mr P Prasanna Kumar Rao has been associated with Heidelberg ProMinent Fluid Controls India Private Limited since its inception. He is a Mechanical Engineer and has been instrumental in the establishment and growth of the Company in India as well as in the exports markets. In conversation with our team, he expressed his worries regarding Government policies and paper works and urged to make it simpler if to make the campaign a real big hit. He also expressed concerns upon dealing with the Government officials and hoped to see India as a corruption free country in near days. Excerpts-

The prospect of Make in India. Make in India is a wonderful subject. However to bring this into practice we have to make conditions better for manufacturing. This will include liberalization of regulations, making approvals easier and faster, single window clearances etc. We, in fact,

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have been exporting products manufactured by us to more than 20 countries in different parts of the world and have been trying to achieve this from quite some time. Would you look at expanding the products you manufacture locally?

We are producing our own dosing pumps in India which are exported to more than 20 countries including Germany. We are now in the process of developing one more pump which is also expected to have a good potential all over the world. Our main customer for pumps is China.

Is the focus on Import substitution or Export promotion? The focus has to be on export promotion and for exports to be successful, the pricing has to be competitive. To make the pricing competitive import substitution will be necessary.

July 2015

Steps that the Government should take to promote manufacturing in India. In the first place the Government has to simplify regulations to promote manufacturing in India and additional subsidy in the manufacturing sector will also help.

market? To compete in the global market for engineering products the quality levels have to be raised. No compromise regarding quality should be accepted. We have also have been able to achieve this.

What are your suggestions for better productivity?

Problems faced while dealing with the Government authorities and how they can be eased.

Productivity in India is not behind than other countries and efficient management of human resources can ensure better productivity.

Dealing with the Government authorities continues to be a matter of concern. Corruption is still prevalent and situation will hopefully improve.

How can India compete with the global Engineering

Do subsidies reach the industry?

July 2015

We have not benefited from any subsidy so far. What is your take on our Prime Ministerâ&#x20AC;&#x2122;s urge not to see India as only a market but to see every Indianâ&#x20AC;&#x2122;s potential? There is no doubt India possesses a very high potential with regards to its human resources. If channelized properly the human resources available to us can be put to a great use and can become one of our great advantages. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India?

We require SMEs to support foreign companies as ancillary units and vendors to the bigger companies. While entry of foreign companies is definitely welcome, the SMEs sector has to be encouraged. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? With the right kind of policy, support from the Government, manufacturing sector should show a double digit growth in the next two decades.

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Reduce Red Tape, Simplify or Simply Negate Peripheral Procedures

Meetali Mukherjee Director, Hydax Hydraulics

Ms. Meetali Mukherjee is the Director of operations of Hydax Hydraulics Pvt. Ltd. Hydax Hydraulics was established in the year 1979, by Mr. D B Mukherjee, a technocrat with over 40 years of expertise behind him. The concept right from the onset, was to create products that would be indigenously designed, technologically superior and commercially viable. They are upgrading their products keeping pace with the rapidly advancing Fluid Power industry. Providing gainful employment to people in a conducive atmosphere, has been the driving ethos through the last 35 years. When interviewed by MART, she says that the time taken to set up a new unit should be compressed, especially for micro and small scale industries, skill development institutes should be made accessible and accountable and the list goes on.

Impact of Make in India? The punch line is catchy but implies our country being used more as a manufacturing sweat shop than a hub for design, development and manufacturing. Also, the industrial slow down has made fruition of this advertising campaign a mere pipe dream. Would you look at expanding your manufacturing facility?

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The feel good factor has certainly helped in sustaining us in the face of a global crisis. The local market has always been our primary one and we continue to build on the goodwill that we enjoy here. Is the focus on Import substitution or Export promotion? More export promotion than import substitution.

What are the steps that the Government should take to promote manufacturing in India? Reduce red tape, simplify or simply negate peripheral procedures related to several Government agencies, the promotional activities should transmit to the implementing departments at the local level, the time taken to set up a new unit should be compressed especially for micro and

small scale industries, skill development institutes should be made accessible and accountableand the list goes on. Suggestions for better productivity. Non manufacturing obligations should be fulfilled online, good net connectivity at industrial areas, uninterrupted power supply to all industrial

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areas,local rules to run concurrent to centre’s policy. How can India compete with the global Engineering market? Are we not already doing it? In terms of technology, we are developing and using cutting edge products, but what bogs us down is the dead weight that surrounds the simple manufacturing process. The challenges that you face while dealing with the Government authorities and how they can be eased. The time taken to get any task done is inordinately long. Fighting corruption at every level leaves many exhausted. The number of superfluous Government departments to report to should be minimised. Corruption must be weeded out from the highest level to the bottom most rung. Do subsidies reach the industry? Only after members of the doling agencies receive their ‘cuts’. Our Prime Minister urged the Global Business Developers not to see India as only a market but to see every Indian’s potential. What is your take on this? If India buys quality products at compatible globalrates, nothing wrong with we being a market. Indian potential has been used globally for eons now; it is in India that it most underused. Which do you think is

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preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? SMEs, SMEs, SMEs. They practise on a level playing field. How far has PM’s “First Develop in India”, reached out to the Manufacturing Sector? Not sure what the precise schemes that have been initiated within this programme. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? Tremendous growth if we can provide the youth the skills required to cater to the manufacturing industry. Getting adequately skilled labour remains a huge need of today. The steps Government should take to develop entrepreneur skills in young engineers from the academic level? Management topics should be incorporated into the curriculum to give engineering students a feel of entrepreneurship. The syllabus has to be more hands on with a greater emphasis on application learning. The above will somewhat ease the transition into a workplace from an academic one. Lastly, the start up environment has to be more welcoming and conducive to growth.

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Use Less Paper - Save our Environment!

Surendra Kumar CEO, Precision International

Mr. Surendra Kumar, graduated in Mechanical Engineering before he was 21, from Roorkee (now IIT). He is one of the founder members of the Indo Italian Chamber of Commerce and Industry in India and has been in its alternative Chairman for North India. In 2007 he was decorated with Knighthood by the President of Italy for this contribution in bringing together the industries of India and Italy. For more details do visit www.precinter.com In the article he talked about the need to save trees in order to save the entire world from destruction. To live a peaceful, healthy life, healthy environment is necessary and trees are the only greeneries we have to breathe fresh air. Unfortunately, in India, we have still a lot of Government rules where paper work is necessary. The author requests to stop the misuse of the natural resources. More follow:

Many of the e-mail messages carry a bottom-line: ‘Do not print unless necessary. Save paper; Save trees’. About 2 years ago, a delegation from Belgium held a seminar here inviting investments in their country. During the seminar they highlighted the fact that the use of paper had been eliminated practically in all the processes related to

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the payment of taxes, and for giving credit for the taxes paid. Everything had been made online; whether for incometax, sales-tax, property-tax, etc. Even for the payment of customs-duty (applicable only on imports from nonEU countries) no paper whatsoever was being used. In India, on the other hand, there is unfortunately a

new trend, demanding the consumption of more and more paper with every passing day. State Governments are vying with each other in this direction. Sales-tax department devours paper: Goods entering one state of India from another are termed as ‘Imports’ in the sales-tax jargon. Many of the states have introduced a system requiring

the importer (the buyer) in their state to register electronically with the salestax department for the issue of an electronic challan for each transaction. This challan is sent to the supplier in the other state through e-mail. The supplier is required to take a printout and to send it to the buyer together with the goods. This means that if there is 1 lac transactions made each day

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Every 3000 sheets of paper cost us a tree

in any state with the goods entering from another state, an equal number of sheets are needed to be printed out. This appears to be too good to be true. In reality, for each transaction made, not 1 but 4 challan-sheets are to be printed: 1. To be sent to the buyer for his records; 2.For the sales-tax department of the buyer’s state; to be submitted by the buyer to them; 3. To be handed over to the courier company for it to be kept available during transit, for check by the salestax department; and, 4. For the supplier’s own record. As a result, for 1 lac transactions made, 4 lac sheets are required to be printed. Tons of paper has started getting consumed each day. A recent phenomenon, since a few years only, it had never existed in the past. The Governments that introduced this system did so with total apathy to the fact that they were demanding documentary proof on paper for transactions registered with them electronically. With the exception of Haryana, all states near Delhi have

July 2015

made it imperative. U.P. calls such documentary proof ‘e-Sancharan’; Rajasthan calls it ‘Form 47A’; Delhi calls it ‘T2’. Distant from Delhi, Karnataka demands an ‘e-Sugam’; while West Bengal the ‘Waybill’. Fortunately for Mother Earth, states like Punjab; Haryana; Maharashtra; Gujarat; M.P.; A.P.; Telangana; Tamilnadu; Bihar; and some more states have not followed in this direction; for goods entering their state. Still, for goods outgoing from their state to those of the states prescribing the paper-documentation, paper has got to be processed and consumed. Even for Sales-Tax payments made online, 4 identical A-4 sheets are required to be printed, and submitted, for each e-payment made! Excise department too are not far behind: Not limited to inter-state movement of goods, mandatory electronic filing of an excise return has to be followed by the sameto be submitted in hard copy; the reason being that the excise department does not

trust what you submitted electronically. So, all e-records submitted have to be printed out on paper; in duplicate. Even the excise records in any organization, though executed through a computer, are required to be maintained hand-written in registers. So, a whole lot of registers are to be bought at the beginning of each financial year, requiring an extra person to be employed only for hand-recording. Banking has all the money to waste paper: Most of the printers used by the banks make use of rolls of paper in A3 format, with perforations between the pages. For any statement to be given, whether needing a few lines, a whole sheet is consumed. It is a pity if the last line has to cross over to the next page. It would consume a whole extra page. Sometimes an underscoring line alone moves over to the next A3 page, with the printed matter resting on the previous page. Multiple sheets of the same document (Voter I-Card; or, the PAN) are required to

be submitted to the same branch, relating to a single person;should he happen to hold multiple accounts in the same branch (current account; and any number of joint savings accounts). Balance-sheets sometimes weigh more than novels: Company Balance-Sheets are public documents, presumably. If so, why can these not be uploaded on the company website, saving the printing on hard paper one copy for each shareholder? For rupees ten received as the annual dividend from some companies, the saving grace is the 1 kg. balance-sheet bringing rupees eight to the household, when sold as trash. Limiting the dispatch of printed-out copies to those pre-registered by specific share-holders could save tons of paper, and lot many trees. By thoughtfully curtailing the use of paper, perhaps we shall see more trees on India’s landscape; and less of landslides on India’s mountains!

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Train the Youth to Seal the Opportunity of Dynamism

Nagraj C M Managing Director, Right Engineers

Mr. Nagaraj CM has done his MBA and possesses an experience of one and half decade in providing solutions for Material handling. Established in the year 1996, “Right Engineers & Equipment India Private Limited.” is the designers, manufacturers and suppliers of an array of material handling equipment & storage solutions for industrial and logistics sector. On being asked about the prospect of ‘Make in India’, he said more clearance is needed in respect of Government initiatives to make them reach to the right people. Also, he pointed out the need of trained young professionals in the industry to foster growth. Excerpts:

The prospect of Make in India

the manufacturing facility?

Make in India initiative will help improving the economy of India. It will help in more job creation and skill enhancement which will further increase the GDP growth and tax revenue of the Government. Finally the country’s economy can flourish. All working hands will have handful of job and money.

Yes, to make use of this initiative, we are thinking to attract the capital & technological investments in our company by global leaders. It will help us develop more products in our segment to cater to the whole world.

Would you look at expanding

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Is the focus on Import substitution or Export promotion?

This is substitution for import, by making at our place up to the global standard and with updated technology. Also by the global standard and quality product we can export to the rest of the world. What are the steps that the Government should take to promote manufacturing in India? In order to promote manufacturing in India, GOI

should form an exclusive board for Promotion of Manufacturing Industries or Sector. Also it can form and implement various policies to promote manufacturing activities in India. GOI should educate Indian manufacturing industrialists about the Make in India projects by conducting state level seminars and trade fairs. GOI should facilitate manufacturing industries by providing subsidised tax rates

July 2015

on import and export activities.

To improve the productivity at all levels and various industrial segment, people should think of automation and lean implementation.

Subsidies are not reaching to the bottom level of the SME’s. The entrepreneurs are not aware of subsidies scheme and the available Government initiatives. Therefore, the people who are lobbying will enjoy the benefit irrespective of eligibility.

We need to drop age old conventional manufacturing methods by adopting new automated manufacturing procedure.

Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India?

How can India compete with the global Engineering market?

Foreign capital and technological investment should happen at SME’s level. It should not be limited to big corporate. When technology and investment reaches to SME’s, each and every small products will have the global standard of quality and explore the possibilities of manufacturing more to cater to the globe.

What are your suggestions for better productivity?

Every Indian entrepreneur needs to set up R&D engineering in their industries and devote some part of the revenue and energy to do research on the various new engineering markets. It will boost the confidence of our own technocrats to fight with global technological competitors. What are the challenges that you face on a regular basis while dealing with the Government authorities and how can they be eased? We find lack of transparency in revealing various initiatives from the Government, which is related to SME’s & various developments. Every entrepreneur should know about the Government initiative/ scheme/subsidies. This will encourage the entrepreneur to think creatively & exercise investments in free mind. Do subsidies reach the industry?

July 2015

As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? Every third person in an Indian city today is a youth. By 2020, India is set to become the world’s youngest country with 64 per cent of its population in the working age group. With the West, Japan and even China aging, this demographic potential offers India and its growing economy an unprecedented edge that economists believe could add a significant 2 per cent to the GDP growth rate.

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Focus should be on Developing Entrepreneurship among Indians

Gautam K Ahuja Managing Director, Dormer Tools

Starting his career with Escorts, Mr. Gautam Ahuja has 25 years of experience in the Indian industry, out of which 21 years is in cutting tools. With the challenge of establishing a new brand in India, he joined Dormer Tools as the Managing Director in 2013 and has been dedicated to transform the Indian Cutting Tools Industry. In conversation with us, he pointed out that though ‘Make in India’ campaign has made a lot of buzz, the scenario will change with active execution of the proposed plans. Also, the Government must focus on entrepreneurship development and engineering colleges should revamp their rules to inspire a budding engineer. Excerpts:

The prospect of Make in India. Make in India is a very good initiative to boost our manufacturing sector and exports. This will have long term benefits and the growth achieved through this would be sustainable. The Government is taking all possible steps to attract investment into India, which will have a ripple effect on economy, currency, employment etc.

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Would you look at expanding the products you manufacture locally? We are in the initial stage of business in India. As our volume grows, we would start manufacturing in India. Our parent company, Sandvik is already putting up a huge manufacturing facility under ‘Make in India’ at Chakan, Pune. Is the focus on Import substitution or Export promotion?

India is concerned with getting investment and setting up of a manufacturing facility to generate employment. Hence, both Import Substitution and Export Promotion are welcome. The former will help to reduce outgo of foreign exchange while the latter will facilitate foreign exchange coming to India. What are the steps that the Government should take to promote manufacturing in

India? The measures announced by the Government to attract global companies to invest in India and the ‘Ease of doing Business’, will go a long way to bring about the next manufacturing revolution in the country. However, since they have to set up a manufacturing facility, and for activity to be seen on the ground level, it will take some time. For long term sustainability, the

July 2015

For better productivity, we need to employ the latest techniques being used globally, like robotics. We need to be more automated for higher productivity, reducing the time taken at each step.

implementation of the schemes proposed by the Government would be the key. What are your suggestions for better productivity? For better productivity, we need to employ the latest techniques being used globally, like robotics. We need to be more automated for higher productivity, reducing the time taken at each step. This also helps us to compete globally. How can India compete with the global Engineering market? India has come of age now to compete with the global engineering companies. Due to the globalisation, we have access to the latest techniques in the world which help us to increase our productivity and thereby compete in the global markets. Problems faced while dealing with the Government authorities and how they can be eased. Since we have consultants to guide us, we do not face tough challenges. However, the Government needs to focus on implementation of the changes proposed in ‘Ease of doing Business’. Do subsidies reach the industry?

July 2015

To my understanding the subsidies for the industry are generally of such a nature, that they can deduct at their level from the taxes being deposited, or alternatively they may not have to pay a particular tax at all. If all the paperwork is correct, then the industry can get the relevant benefits.

to the Manufacturing Sector?

What is your take on our Prime Minister’s urge not to see India as only a market but to see every Indian’s potential?

As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years?

The average disposable income of Indians has grown multi-fold in the last decade. Also, there is a big shift in spending patterns. Hence, each Indian is a potential customer, and should be viewed as such. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? By inviting foreign companies to invest in India, there are a lot of benefits as highlighted above. Secondly, the larger companies will outsource a large part of components, which will also push up the SME’s of India. The ripple effect on the economy will be tremendous. How far has “First Develop in India” by our PM, reached out

The Indian PM, Mr. Narendra Modi, while launching the ‘Make in India’, announced his definition of FDI. It goes in sync with his philosophy of developing and making in India and exporting to the world markets.

The youth of India is the highest that any nation has. We need to channelize their energies for positive development of India. Hence we need a high GDP growth to generate employment for them. A sustained growth of 8-10% every year for the next 20 years will definitely make India a superpower. The steps Government should take to develop entrepreneur skills in young engineers from the academic level? The Government should create a conducive environment for the start-up ecosystem to promote entrepreneur skills for Engineers. It should have a separate start-up fund and

also provide ‘plug & play’ office space with internet at affordable rates. The engineering colleges should provide some opportunities for its students, and not force upon attendance in college for such students. Soft loans should be easily available. Some incentives and subsidies should be given for buying new machines and equipment to promote start-ups. If the initial capital required is low, then more engineers would be encouraged to take the risk and become an entrepreneur. How far are the Government schemes for women entrepreneurs actually helping women Entrepreneurs in the manufacturing sector? There are only about 10% of the Small and Micro industries owned by women. Hence, this needs to be promoted a lot to bring more women to become entrepreneurs. There are some schemes available, but not many women are opting for them, and it could be lack of awareness. The Government should promote awareness of these schemes and also introduce new ones which are friendly in nature and targeted to the intended audience.

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With “Make in India”, Many New Foundries will be on the Rise

Jolly Lonappan Managing Director, Blastline India

Mr. Jolly Lonappan, an NRI, aged 59 is a Mechanical Engineer from Palghat NSS Engineering College, and did his diploma from KC College of Management Studies Mumbai, worked with many positions in maintenance, sales, service, marketing and then moved to the Middle East. Mr. Jolly started his company Blastline in 1990. He is an editor, educationist, consula, consultant, mentor, Enterpurner, manufacturer, contractor and trader. When interviewed by MART, he says that India has got a sizable population of English speaking educated youth adept at using computers & internet. If this vast pool of talent can be channelized constructively and integrated into India’s manufacturing Industry, that itself will be best resource we can mobilize.

Impact of “Make in India” mission. 65 % of Indian population is below 30 Years of age. There are millions of youth getting graduated every year generating an end-less pool of talent. It is of common knowledge that some of the best students in the USA are Indians, be it engineering,

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medicine, management or research. If motivated sufficiently by giving a glimmer of hope and if their minds are ignited - as wished by our ex-president Dr. Abdul Kalam, they can do wonders for our country. This is where our Prime Minister’s “Make in India” campaign comes into the

picture. Like never before, the business community, at large, seems to have become receptive to the idea of challenging China’s supremacy in manufacturing sector by wresting off some market share in favor of our country. However, it is a challenge and it takes real guts for a company to venture into it. There are five ingredients critical

for the success of any business venture: 1. Idea, 2.Team, 3. Workable business model, 4.The right timing and 5. Sufficient funds. Out of these, research shows that, even if you have the right idea and plenty of cash, the wrong timing can lead to disaster. The current business atmosphere proliferated by Mr.

July 2015

Modi’s “Make in India” policy seems to have brought about a notion that this is the right occasion to consider starting new manufacturing ventures in India. Would you look at expanding the products you manufacture locally? Blastline India has set up two manufacturing facilities in accordance with the “Make in India”policy. The steel shot and steel grit factory M/s JMAPL at Tuticorin, Tamilnadu is one of its kind in southern India and “M/S Jolly Flex”situated in rubber park, Perumbavoor, Kerala, is built for making Industrial grade rubber hoses and high pressure thermoplastic painting hoses. These are primarily export oriented units. Is the focus on Import substitution or Export promotion? The focus is certainly on import substitution. About 80% of steel short and steel grit requirements used to be met by material imported from Europe, China and South Africa. Reusable steel shots are especially useful in the foundry industry as it is used extensively for blast-cleaning of castings. If “Make in India” really takes off, requirements for many new foundries will be on the rise, so will be the need for steel shot abrasives. Also some other major industries needing this product would be Shipyards, Railways, Steel fabricators, Granite cutting industry, Nuclear power plants etc. Whereas China has about 40 factories supplying this product, India can hardly boast

July 2015

of 3 or 4. Similarly, natural rubber, abundant in Kerala, used to get exported to European countries from where it is imported again as value added products. Since Brazil, China and many other countries have started cultivating rubber trees, the international prices had dropped forcing our rubber planters to sell rubber at extremely low prices, even leading to farmer suicides in some cases. In our own small way, our factory at Rubber Park is helping the situation by purchasing local rubber. This also helps in retaining the hard earned foreign currency in our own country. The steps the Government should take to promote manufacturing in India. 4 out of every 10 Americans are entrepreneurs and an average of 14 workers are employed by each one. Therefore US job marketing is always active. There are only 5 entrepreneurs out of every 30 Indians and each one employs only about 10 workers and this is one major reason for Unemployment in India. This trend should be reversed by creating a conducive atmosphere for entrepreneurs to quickly easily start business ventures. We have to encourage and educate potential entrepreneurs along with offers of special incentives from the Government. We also have to drastically cut down the bureaucratic hurdles extensively using digital technology and Internet through on-line processing of applications, licensing and various other formalities. The human contact element should be minimized in the

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bureaucratic process as it erodes and corrodes the system to an extent where a business venture is forced to get trashed even before it starts. Suggestions for better productivity: Create more venues for education, counseling, seminars, talks, demonstrations, exhibitions and get together of likeminded people to remove the fear of failure. How India can compete with the global engineering market? The real power in today’s business world is neither money nor muscle but it is really in knowledge and information. In the Old Testament it is the brain power of David that made him win over mighty Goliath using a puny slingshot. If a common thief needs to pick a few pockets he has to go to a bus stand or a market place whereas a perverted computer geek can swindle an entire bank account sitting in the

comfort of his bedroom.

by Global Business developers?

India has got a sizable population of English speaking educated youth adept at using computers & internet. If this vast pool of talent can be channelized constructively and integrated into India’s manufacturing Industry, that itself will be best resource we can mobilize.

Our prime minister has coined a new and interesting expansion for FDI (Foreign Direct Investment). He expands the acronym FDI as “First Develop India”. His campaign “Make an India“ is a very clear message to foreign investors in this direction. We can do it by educating, encouraging, enlightening and empowering the Indian youth for unleashing their potential.

Challenges while dealing with Government Authorities? As mentioned earlier, bureaucracy is the biggest challenge for start-ups and digital governance and minimum human intervention can help to a great extend. Do subsidies reach the Industry ? Again, the solution is digital transfer of subsidies to beneficiaries. I am happy to note that the Modi Government has made the right moves in this direction with the help of all major Indian Banks. Is India seen only as a market

SME’s in India or Foreign companies? There is no need for foreign companies to transfer technology as everything is available in the cyberspace like day light. It only needs guts and will power to do it. The best example is the growth of Reliance Industries. Growth in next 20 years? If we can properly tap the potential of Indian youth, that is about 65% of the populations, the growth should no more be linear, but exponential. That is, the growth factor will not be

like 1,2,3 but 1,2,4,16 over the years. Steps the Government should take at the academic level? Many a business conglomerate of today actually got started from garages of small houses and it will continue to be so. However, Indian education system can change by insistence of the Government that it should contain: 1) On-the-job training sessions or compulsory internship where students get exposed to on-site research and production processes. 2) Free counseling by real life heroes and mentors for their projects that should be compulsory. 3) Providing star-ups facilities or incubation centers with minimal bureaucratic hurdles for graduates. 4) If the start up project succeeds, then the credit goes to the team behind and if it fails the Government should take the responsibility.

Free counseling by real life heroes and mentors for their projects should be made compulsory.

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Innovative Automation Products

B/24, MIDC Satara 415004 India

+91 2162 246509 +91 2162 245966 sales@innovativedro.com www.martupdate.com 109

India has a long way to catch up!

Rashmi Ranjan Mohapatra Managing Director, Kemppi India

Mr. Rashmi Ranjan Mohapatra, BE, MBA in Marketing, having 21 years of experience in Industrial consumables and equipment in the Indian, European and South East Asian Market, has worked for Linde, earlier known as BOC India, ADOR Welding and currently works as the National Sales Manager of KEMPPI INDIA based at Chennai since April 2011. When reaching out to the readers of MART, he brings into focus the point that despite the global slowdown, the Indian economy continues to grow at a positive rate. The financial system is sound and the capital market is maturing and this is attracting business and investments from other parts of the globe.

Promoting Indian Manufacturing through Make In India The Make in India campaign is to promote manufacturing in India. Currently the manufacturing sector

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contributes to 16% of the GDP of the country. The ambition is to have it at the level of 25% by 2025. Globally India’s share of manufacturing stands at little over 2%. Whereas it is 22.4% for China. This clearly shows how we are far behind and have a

Rank

2011

2012

2013

2014 2015

Provisional

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132

134

Revised

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long way to catch up.

• 25 key sectors have been identified eg. Auto, Chemicals, Immediate steps by Government to textiles, aviation etc. make “Make in India” • 5 new sMart cities to be successful built around high employment generating industrial clusters. The steps proposed by the Government have been : Actions towards making these • Impetus to Manufacturing sector steps happen are critical. This has to be addressed. and seek foreign investment. • Improve India’s ranking to 50 from 142 in terms of doing business in next 3 years.

Present status of Ease of doing business in India Despite the global slowdown,

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the Indian economy continues to grow at a positive rate. The financial system is sound and the capital market is maturing. This is attracting business and investments from other parts of the globe. The middle class population and the domestic consumption capacity makes it a preferred destination. But if we analyse the trend it is worrying: Indiaâ&#x20AC;&#x2122;s rank in ease of doing business during the last 5 years: It is a negative trend and is alarming!! In comparison to this the smaller countries in South East Asia score fairly better e.g.

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Pakistan : 128 Bhutan : 125 Maldives : 116 Nepal : 108 As a nation our competitiveness among the BRICS nation is also not so encouraging:

Country

Rank

South Africa

Russia

China

Brazil

120

This shows clearly that we have to re-look at the process and facilitate business in INDIA to make the ranking grow.

India needs to relook at the process and facilitate manufacturing businesses to Improve ranking

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First Define Entrepreneurship

Suprio Ghosh Managing Partner, Girish Chandra Ghosh & GGS Mr.

Mr. Supriyo Ghosh, had his B. Com. degree from Calcutta University, Post Graduate Diploma in Business Management from Institute of Modern Management, Calcutta and has also successfully completed a certificate course on “MDP on marketing Management” from MSME-DI, Kolkata. He has also received training on Storage Tank Calibration from Engineers & other bodies on traditional & modern technology. Their company has a Govt license of storage: Tank calibration and weighing solutions. He has been a member & chairman of Consumer Affairs Legal Metrology Committee in Federation of Small & Medium Industries of West Bengal in 2013-14, Council Member (Director) & Chairman of Micro level Industry member Development Committee from 2015, the Vice President of Eastern Regional Legal Metrology Licensees Welfare Association, ex Joint Secretary (2011-2013) and members of other reputed organisations related to the industry. When interviewed by MART, he points out that a major strength of the MSME sector is its potential for greater innovation both in terms of products & processes. Thus they are important for the national objectives of growth with equity & inclusion.

How Make in India can develop India as a lead manufacturing destination in the world? The need to raise the global competitiveness of the Indian manufacturing sector is imperative for the country’s long term-growth. The National Manufacturing Policy is by far the most comprehensive and significant policy initiative taken by the Government.

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The policy is the first of its kind for the manufacturing sector as it addresses areas of regulation, infrastructure, skill development, technology, availability of finance, exit mechanism and other pertinent factors related to the growth of the sector. The “Make in India” initiative of BJP Government would certainly highlight India as a lead manufacturing destination as

the Chinese economy slowing down & the world’s economic centre of gravity has been shifting from west to east, India sense an big opportunity in the industrial sector. It would result the boost of domestic production & reduce import & thus taxes would be reduced & products’ manufacturing cost would be reduced also. This would cause attracting others automatically for the ultimate destination for

manufacturing. Thus, India would be in global map in large quantity in coming day & glorious future beckons India. To make “Make in India” successful, what are the immediate steps Government should take to support manufacturing industries? For the ultimate success of the “Make in India” project

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Under the scheme of “Make in India” doing business in India just got easier – new de-licensing and deregulation measures are reducing complexity, and significantly increasing speed and transparency.

Government must take some initiatives which are discussed below.

- For availing Credit facility requirements of collateral securities.

Entrepreneur Memorandum made online on 24×7 basis through eBiz portal.

• All returns should be filed on-

- Creation of appropriate skill sets among rural migrants and the urban poor for inclusive growth.

- Limited access to equity capital.

• Validity of Industrial license extended to three years.

compliances should be placed

- Problems in supply to Govt. Dept. & agencies.

• States asked to introduce self-certification and third party certification under Boilers Act.

- An increase in domestic value addition and technological depth in manufacturing.

- Procurement of raw materials at a competitive cost.

- Enhancing the global competitiveness of the Indian manufacturing sector.

- Problems of storage, designing, packaging & product display.

- Ensuring sustainability of growth, particularly with regard to environment.

- Lack of access to global markets.

- Setting up proper infrastructure.

What is the present status of ease of doing business in India?

- Lack of availability of sufficient & timely credit.

Under this scheme of “Make in India” doing business in India just got easier – new de-licensing and deregulation measures are reducing complexity, and significantly increasing speed and transparency.

- Availability of credit in high interest.

• Process of applying for Industrial License & Industrial

Beside this the problems of the MSMEs sectors of the country would be solved which are briefly described below

July 2015

• Major components of Defence products’ list excluded from industrial licensing. • Dual use items having military as well as civilian applications deregulated.

line through a unified form. • A check-list of required on Ministry’s/Department’s web portal. • All registers required to be maintained by the business should be replaced with a single electronic register. • No inspection should be undertaken without the approval of the Head of the Department.

• Services of all Central Govt. Departments & Ministries will be integrated with the eBiz – a single window IT platform for services by 31 Dec. 2014.

• For all non-risk, non-

• Process of obtaining environmental clearances made online.

India program represents an

• Following advisories sent to all Departments/ State Governments to simplify and rationalize regulatory environment.

hazardous businesses a system of self-certification to be introduced. Most importantly, the Make in attitudinal shift in how India relates to investors: not as a permit-issuing authority, but as a true business partner. • Dedicated teams that will guide and assist first-time investors, from time of arrival.

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• Focused targeting of companies across sectors With the Government taking steps to reduce paperwork and get faster clearances, India’s ranking on World Bank’s Ease of Doing Business report would certainly improve during the year. “The eBiz platform has been started and we believe that India’s ranking on the World Bank’s Ease of Doing Business would improve during the year,” CII President Sumit Mazumder told. The eBiz platform aims to create a business and investor friendly ecosystem in India by making all business and investment related clearances and compliances available on a 24x7 single portal, with an integrated payment gateway. The Government is taking several steps to bring India into the top 50 ranks. India has been ranked 142 among the 189

countries in the World Bank’s report, falling two places from the previous year’s ranking. The ‘Make in India’ campaign has generated huge interest among domestic and foreign investors and expressed hope that investments would pick up going ahead. The ‘Make in India’ campaign, a strategy to improve ease of doing business and focus on imparting skills have laid the foundation stone for a robust framework for manufacturing as well as for the Indian economy. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? The role of Micro, Small & Medium enterprises (MSMEs) in the economic & social development of the country is well established.

The MSMEs sector is a nursery of entrepreneurship, often driven by individual creativity & innovation. This sector contributes 8% of the country’s GDP, 45 % of the manufactured output & 40% of its exports. The MSMEs provide employment to about 60 million persons through over 26 million enterprises producing over six thousands products. The labour to capital ratio in the MSMEs & the overall growth in the MSME sector is much higher than in the large industries. A major strength of this sector is its potential for greater innovation both in terms of products & processes. Thus MSMEs are important for the national objectives of growth with equity & inclusion. So, according to me concentrating on the SMEs is more important rather than inviting foreign companies to invest in India.

How far has PM’s definition of FDI, “First Develop in India”, reached out to the Manufacturing Sector? Ease of doing business, focus on Public-Private partnerships, harnessing the potential of Democracy, Demography and Demand - that’s what forms the key focus of ‘Make in India’ campaign, calling development of India a ‘collective responsibility’. According to PM Modi, “We must stress on two FDIs - First Develop India and Foreign Direct Investment.” “For Indians FDI is a responsibility, it means to First Develop India, for global investors FDI is an opportunity in the form of Foreign Direct Investment. Focusing on job creation through growth of the manufacturing sector, we need to enhance the purchasing power of Indians. We need to create jobs to move poor to

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middle class bracket.” “Treat India as not just a market. See every Indian as an opportunity to increase their purchasing power,” “We have to change the economic dynamics; we have to improve manufacturing in a fashion that benefits the poor. This is a cycle, move poor people towards being a part of middle class”. “Manufacturing boost will create jobs, increase purchasing power, thereby creating a larger market for manufacturers. Talking about the ease of doing business, Modi stressed on ensuring smoother state-centre relations. “Development of states is important. States and centre have to work together to attract investment.” “Development of states is development of India,” he added.

Noting the important role that government has to play Modi said, “I want to take India higher on Ease-of-DoingBusiness Index. We need to create an environment of growth, development in the country.” “Incentives alone won’t work; development and growth directed measures are important. Investors need security first, then growth and profit,” he said. “Government should intervene to instill confidence. Government is committed to growth; there is no political agenda but article of faith. Be assured you will not lose your money,” Modi told investors. “Rule of law should be there, corporate government responsibility should be the norm,” he said while talking about collective development responsibility.

In the context of manufacturing and deficits Modi advocated the importance of exports. “We are aggressively going to work towards export promotion,” he said. Stating that Asia is the next growth story Modi said, “The world is looking to Asia for growth. I don’t need to give an invitation; I just need to tell people the address of India.” Seeking to reassure investors of the government’s intent to promote growth Modi said, “Development is an article of faith for the government. We are dedicated to growth.” “I do not only talk about good governance. I talk about effective governance. Government working as a facilitator can produce results,” he added.

Your message to the budding engineering entrepreneurs in India?

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First define entrepreneurship. Not something that you want to do just for lark, because that is the flavour of the month, peers are doing it, you can’t decide what to do. Once decided, then what would be your professional and personal objective with timeline. Once committed then execute. Beside this the major issue which should be carded are as follows. -Think positive & do positive. - No less expense plan no extra expense plan which means follow the “Just Exact Expense Plan” as required.

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Simplifying Tax Regime can attract Investments

Avinash Chabukswar Director, C-Tech Engineers

Mr. Avinash has studied B. E. (Mech) from COEP Pune in 1976 and served for one year at Ex Cello India. Later he joined Merchant Navy in 1977 and worked with Shipping Corporation of India till 1982. He worked with various companies like Balaji Tubes Pvt. Ltd., Speedicut Small Cutting Tools Pvt. Ltd., Basic Tools Pvt. Ltd. In 2001, he opened up a new manufacturing firm, C-Tech Engineers Pvt. Ltd. In Pune and currently he is serving the company as the Director. C-Tech is the manufacturer and exporter of precision machined components. In conversation with the MART Team on Make in India, Mr. Avinash said, this is the first of its kind an initiative by any Prime Minister of India so far. However, it is high time to focus on infrastructure development, good and reliable working standards and easy access to advanced technology. More from the conversation follows:

The prospect of Make in India. No doubt it is a step of a Lion as no one from previous Government has shown such a great vision. One should appreciate the way it was marketed by Mr. Modi and his team during every visit

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to different countries. During Hanover Exhibition, it was systematically projected with big bang. But now tremendous work has to be done within India and that is the real tough task in front of Mr. Modi Team. A lot of work has to be done for

• Infrastructure • Government Regulations

Would you look at expanding the manufacturing facility?

• To percolate different schemes for development without corruption to bottom level

Yes we are definitely looking for expansion. Our company is mainly working for off road vehicle manufacturers and all giants are already in India. Many more are planning to

• Mainly to develop skilled manpower to take this challenge.

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come to India. We are already in process to tap them. They are mainly from Europe, China and Korea and everybody is expecting parts from us for their local unit and if chances are there, they have plans to export from India to their principals overseas, as a part of their global sourcing. Is the focus on Import substitution or Export promotion?

What are your suggestions for better productivity? Technology up gradation and good training facilities with innovation at every stage of manufacturing can increase productivity to any extent. How can India compete with the global Engineering market? At present we in SME sector are lagging in four aspects

In fact it is both as there are few companies that are buying directly from us as an Import Substitution to their existing parts which they are buying as CKD units. Once we develop and they get confidence they will stop importing. Their next target is to buy and export to their counterparts overseas once we supply for few months. In fact they want to make their plant as INDIA HUB for all over world counterparts.

1. Raw material availability at competitive price.

Another trend now is that many companies have office in India to explore parts to be manufactured in India and at competitive price and export to their overseas users as GLOBAL SOURCING HUB.

SMEâ&#x20AC;&#x2122;s cannot buy advanced technology machines with ease of finance and cannot afford to have skilled manpower. Everybody in this sector is struggling to overcome these hurdles to become competitive with global engineering market.

What are the steps that the Government should take to promote manufacturing in India? Government should give good infrastructure to manufacturers and make tax structure as simple as possible. There should not be much subsidy but I feel that ease of working is the biggest subsidy.

July 2015

2. Advance technology 3. Skilled manpower 4. Availability of cheap finance. Non availability of correct grade of raw material at best price is making any SME to lose order against competitors from South America/ China /Korea or Eastern Europe.

Problems faced while dealing with the Government authorities and how they can be eased. Mainly all our laws are made in such a way that even if you follow everything correctly you get caught .Government authority can

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interpret as per their wish and harass you. Simple laws and implementation with understanding difficulties of a manufacturer can change the scenario. No doubt there are many changes being made but still there is a long way ahead. Do subsidies reach the industry? Yes almost 70/80% subsidies reach to industries, but at what cost is also an important factor. Many times it reaches you after payment of 15/20% cost of receipt. This is the fact and we feel very bad about it.

are using them for wrong practices. They are paying them, just to keep them for their misuse. Once you are used to getting easy money for not doing anything, you become lazy and do not work. This also leads to addiction and criminal behaviour. How will India become a super power then? Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India?

It will be great to invite such projects to India that will What is your take on our Prime require good amount of SME Minister’s urge not to see India segment for their vendors as only a market but to see and also simultaneously raise every Indian’s potential? standard of SME’s in India to international level. Yes there is a tremendous potential but I wonder it is How far has PM’s “First getting wasted, as politicians Develop in India”, reached out

to the Manufacturing Sector? As you know the world has now become a GLOBAL VILLAGE and we must take the benefit of this by developing our, • Infrastructure • Skill Level • Working Standards. •Technology level. As pointed out by our PM, in employing the youth of India that consists of about 65% of our population, what kind of growth is possible in the manufacturing sector in the next 20 years? There will be tremendous growth in next 20 years provided efforts are put to change the mentality of the youth to work hard and earn

maximum. Also this generation should be kept away from addiction of all kinds. It is no doubt that collective and systematic efforts need to be taken to achieve this. The steps the Government should take to develop entrepreneur skills in young engineers from the academic level? Many educational institutes are becoming factories of generating various professionals. Especially in Engineering we find there are lot of changes to be made in curriculum. Examination system is spoiling the students and there is no holistic approach in development of them. Some practical training should be added. No doubt it is not very bad, but if a few changes are made, there will be more positive results.

Technology upgradation and good training facilities with innovation at every stage of manufacturing can increase productivity to any extent.

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A Favourable, Flexible, Liberalised and Transparent Business Environment is Required

Pradeep Kumar Varshneya Managing Director, Censico International

Mr. Pradeep Kumar Varshneya, has his B.tech degree in Chemical Engineering from IIT Kanpur and has won many prestigious awards in the field of Chemical Engineering. He has over 34 years of experience in the field of sales and marketing. He is the past President of National Chamber of Industries and Commerce, Agra and the Past Secretary of Agra Region Exim Federation. While reaching out to the readers of MART, he observes that it is a hard proven fact that India is a competitive manufacturing location for sophisticated things such as construction machinery, cars and automotive components and diesel engines. It is by virtue of talent inherent in our motherland that giants like JCB, Cummins, Deere, Volvo, Hyundai and Ford are using India as a major export hub.

The very reason behind “Make in India” is as simple as it is compelling. India must become a manufacturing powerhouse in order to gainfully employ its demographic dividend; there is no choice here.

in India

India is already good at making complex things which require skilled manpower. It is a hard proven fact that India is a competitive manufacturing location for sophisticated Make in India will certainly help things such as construction India by: machinery, cars and automotive components and diesel engines. •Creating a big labour pool and It is by virtue of talent inherent a large domestic market. in our motherland that giants • Improving the infrastructure like JCB, Cummins, Deere, Volvo, • A major reformation in Labor Hyundai and Ford are using Laws India as a major export hub. • Knowledge & Skill enhancement of talent inherent India ranks 142 on the

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World Bank Index; China is ranked 90. If we were to improve by just 50 places, it would be a huge perceptual breakthrough. However, this is not a manufacturing strategy in itself. As Reserve Bank of India (RBI) Governor Raghuram Rajan correctly and controversially pointed out, much has changed in the world since China elbowed itself into becoming the world’s factory two decades ago. The nature of manufacturing is changing. Lowcost automation and robotics are making pure labour cost arbitrage less important. Lead

times and a flexibility of supply chains are far more important, leading many companies to move manufacturing back closer to the big markets, the United States and Europe. It is noteworthy that India’s manufacturing sector could touch US$ 1 trillion by 2025, according to a report by Mckinsey and Company. There is potential for the sector to account for 25-30 per cent of the country’s GDP and create up to 90 million domestic jobs by 2025. In a major boost to the ‘Make in

July 2015

India’ initiative, the Government has received confirmation from top technology firms such as GE, Bosch, Tejas and Panasonic regarding their decision to invest in the electronic, medical, automotive and telecom manufacturing clusters in India. When such brands shall invest in the Indian market, who will stop India from emerging as a lead manufacturer? The immediate steps that the Government should take to support manufacturing industries are: Energy factor This is an attractive thesis that has a lot of merit. A simple step of making it easier to do business will make a huge difference to India’s manufacturing competitiveness. For an industrial policy To become a manufacturing powerhouse, India needs a manufacturing strategy, otherwise known as industrial policy. Building on advantages India’s industrial policy must recognize where we have important competitive advantages. India is quite uncompetitive at low skill manufacturing. Creating ecosystems To become a manufacturing nation, India has to quickly move beyond rhetoric to create a clear strategy and favourable policy environment for manufacturing to take off. The Government has chosen to quietly dismantle the sclerotic National Manufacturing Competitiveness Council (NMCC) but it needs to foster a more vibrant think tank in its place.

July 2015

In a nutshell anything that the Government does, its aim should be to increase the share of manufacturing in the GDP of the country and to create smart sustainable cities where manufacturing will be the key economic driver. Sour but True, even after two decades of economic reforms, India continues to falter on various sub-indices such as starting a business, dealing with construction permits, getting electricity, registering property, paying taxes, trading across the border, enforcing contracts or resolving insolvency. India is one of the fastest growing economies in the world. However, India’s position in the ‘Doing Business’ annual reports published by the World Bank continues to be less than favorable. The latest rankings place India 134th among 185 countries; lower than its BRICS (Brazil, Russia, India, China, South Africa) counterparts. There is an urgency to focus on improving the business environment and arrest the decline in relative performance against various determinants of investment attractiveness. To maintain its growth trajectory, India needs to be a relatively attractive investment destination across each of these parameters. The Government would need to undertake reforms to help place the country on an equal footing amongst countries having favourable, flexible, liberalised and a transparent business environment. Certainly Modi’s ‘MAKE IN INDIA’ is going to take India exponentially up with respect to Ease of Doing Business.

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Proper Skill Enhancement will Foster Growth in India

Aboli Telawne Director, Telawne Power Equipments

Mrs. Aboli Rakesh Telawne is one of the most prominent women entrepreneurs in today’s India. During her initial years, she was a teacher and received Best Teacher Award. After getting married to Mr. Rakesh Telawne in 2006, she became the Director- HR & Admin Telawne Group. Being interviewed on ‘Make in India’, she said through this campaign India has achieved a brand promotion. Along with this positive sentiment, the Government must focus on skill development because with low labour cost and effective talents, India can compete with the international brands. Also Government must focus on arranging technological transfers B2B meetings abroad. Excerpts:

The prospect of Make in India India’s brand image in world market has got an uplift. Approach of international buyers towards Indian manufacturers has been positive. Would you look at expanding the manufacturing facility? Considering the positive sentiments towards India our

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company has transformed to world class manufacturing facility. It has also added few machineries and niche products required in world market. Is the focus on Import substitution or Export promotion? Our focus is towards exports promotion. We have increased our participation in international exhibitions

worldwide, viz Africa, Gulf, Europe, and Southeast Asia. What are the steps that the Government should take to promote manufacturing in India? B2b meetings in India and international exhibitions need to be organised. An official cell needs to be made for promoting joint ventures or technological

transfers or contract manufacturing etc through SME’s, Embassies, Ministry of Commerce abroad. What are your suggestions for better productivity? Joint Ventures and technological transfer is one of the ways productivity of Indian manufacturers can increase. Lots of international companies are looking for shifting their

July 2015

manufacturing plans from developed countries for cost advantage. India can replace those manufacturing facilities. How can India compete with the global Engineering market? India has very low labour cost compared to other countries. But the efficiency & skill level are very low in India. Skill enhancement training and changes in labour laws can enhance the competency of Indian manufacturers in global market. What are the challenges that you face on a regular basis while dealing with the Government authorities and

July 2015

how can they be eased? Many licenses, many types of taxes, manual documentation system on taxation, inspector rule. Do subsidies reach the industry? We get benefits or subsidies such as … NSIC for SME’s, duty drawback on export, MDA & MAI grants for export promotions. What is your take on our Prime Minister’s urge not to see India as only a market but to see every Indian’s potential? Approach of our PM is very positive towards uplifting image of India and the Indians.

This is seen first of its kind by any PM so far. I believe as long as approach is positive the results are bound to be positive. Which do you think is preferable: concentrating on the SMEs of India or inviting foreign companies to invest in India? Inviting foreign companies to invest in India is preferable for leveraging brand value of the Indian companies in world market. How far has “First Develop in India” by our PM, reached out to the Manufacturing Sector? First develop in India for SME manufacturing sector is very

far in case of FDI. The handholding between SME’s in India and SMEs across the world is needed for success of FDI in this sector. As pointed out by our PM, in employing the youth of India that consists of about 65% of Indians, what kind of growth is possible in the manufacturing sector in the next 20 years? Our company is targeting a growth of about 25 to 35 percent. With a lot of youth in our company as well as in India, and the dynamism of our honourable PM, Indian business has insured. Therefore the growth rate should be consistently between 10-12% in next 5 to 10 years.

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MANUFACTURING EXCELLENCE

Develop Customer oriented mindset in the Organization Managing a SME in India - Part 31

The purpose of Customer Orientation is to deliver value added product to Customer. For this everyone in the chain will add value in his or her function. Management and employees align their objectives to satisfy and retain their Customers.

P S Satish gotopssatish@gmail.com

43. Develop Customer oriented mindset in the Organization – Part 2 In Part 1 of the above article in the previous issue, we tried to understand basics of Customer orientation, types and preferred leadership styles to develop customer orientation. We continue the discussion in this article with emphasis on what companies need to do in order to ensure all employees in the company are oriented towards Customer needs, wants and their satisfaction. Towards this, I give following points to consider for implementation: • Before introducing any technology, process and system please think on how it would help your Customer? We have seen tendency of technology changes,

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computerization within the company and not looking from Customer angle. Like Dr. Goldratt says, it is good to look at whether the initiative has brought any improvements in the bottom line. • Do not try to imitate what other companies are doing. You may take some good inputs by way of benchmarking but adopt to suit the type of Customers you have. • There is a saying by a French novelist, “Real voyage of discovery consists not in seeking new landscapes but in having new eyes “. Instead of trying to bring entirely a new initiative towards Customer orientation, please see what can be done in the set up you have first with least investments. • Go beyond slogans and appointing Key account person

for the Customer. The task would be to orient every employee in the organization from clerk to CEO towards Customer. It should be the job of only Key Accounts Manager to interact and know what Customer wants. • Many of the organization is structured with internal focus. That means organization structure is built on what is convenient and suited for the employees. Modify to focus externally, taking care of Customer perspective. In the internal focused organization, contacts with the Customer is only by marketing or sales team, top management hardly interacts directly with the Customer. Focus is on profits, turnover and savings. Limited interaction by the employees with customer counterparts

and without any customer related targets. The leadership style is autocratic. In the external focus organization, companies see profit as a result of customer satisfaction, management style is consultative, participative & supportive, and treats downstream person as internal customer and management supports all initiatives to keep customer happy. • The purpose of Customer Orientation is to deliver value added product to Customer. For this everyone in the chain will add value in his or her function. Management and employees align their objectives to satisfy and retain their Customers. • Towards Customer orientation, top management

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will demonstrate following five elements – o Clear messages within the company that drives customer orientation o Taking measures to commit towards Customer orientation o Collecting feedback from Customer to improve services o Deploy Customer orientation throughout the organization o Monitor closely internal and external perception on Customer orientation • Management should walk the talk. Insist that Customer satisfaction is one of the measurement criteria among others. • Management should meet few Customers and send them questionnaires to know how they perceive about the company. Remember many Customers will give valuable feedback for improvements when they are met rather than answering questions in questionnaire. • Communicate with a newsletter within the company showing examples where Customer orientation was demonstrated. • Communicate also with Customers regularly on improvements made within the company • Let Customer orientation including handling customer soft issues, treating Customers etc., be a part of regular training for the employees. • Encourage employees to set

July 2015

a service level when dealing with the Customer. E.g. To acknowledge receipt of enquiry from Customer within 1 day. • Look at systems to see whether it is Customer friendly. Does Customer feel at ease when he visits the company? • Companies may think of having a ‘Mr. Customer’ to ensure a single point contact for Customer queries. This can be thought of at least for Major Customers. But everyone in the company honor Mr. Customer’s commitment to the Customer. • When you hire new persons for the company, check at the competency level on Customer orientation. • Let Customer satisfaction be a clear measure for incentives. It would be a good idea to identify one employee each month as, ‘Customer oriented Person’. • Use internal marketing approach to reach out to new Customers. In this, satisfied existing Customer will refer new Customers to the company. Getting Customers through reference is less expensive with scope for easy conversion than bringing in a Customer through external marketing. • Some measures to enhance internal marketing : o Timely service with quality product to the existing customer o No Customer like surprises. Provide customer more and better information than the competitors

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o Customer confidence will enhance when he knows that you can help them and you have sincere and caring attitude o Ensure that Customer feels that he is important. Build on relationship by regular communication and visits. o Appreciate Customer for their efforts in referring a new customer o Customer should feel proud to work with the company o Take proactive measures to invite existing and potential Customers for a get together. For this, existing customer should be fully satisfied with your product and service. o Develop a sense of belonging. Let your Customer feel that you are available whenever they need you. This is one of the values for long term business. Recently when my broadband at home was down for 2 days, the service provider never bothered to enquire what exactly was the

issue, till I complained.

satisfaction is neglected.

consistent.

• Customer satisfaction can be defined as the ratio of the Value customer gets to the Price he pays. Initiate measures to increase Customer satisfaction. Price can be reduced by eliminating wastes in the organization. Value enhancement is possible through improvement of the durability, performance, serviceability, aesthetics and perceived quality of the product. Service through accessibility, reliability, timeliness, responsiveness, assurance, openness for suggestions etc. also enhance value perception of Customer.

• Ensure that all in the company follows ‘5R Rule’ when dealing with Customer :

o Responsive: The Company responds fast to Customer queries. Better to agree on service levels for various interactions with the Customer.

• Use balanced score card as a measure in the company. In this, financial aspects, internal business process improvements, Learning & innovation and growth, Customer relation aspects are taken in measurement. In traditional measurements, high focus is on profit, turnover and other finance related and other aspects including Customer

o Reachable: Customer is able to reach the concerned person of the company easily. Most annoying for any Customer is his inability to reach the Supplier whenever he has a problem. o Responsible: The Company takes responsibility for the mistakes and makes an effort to correct the same. In the time of crisis, even if the problem is attributed to the Customer, the Supplier is to take the responsibility to solve it first without argument and later convince the Customer. o Reliable: The Company has demonstrated cases where Customer can rely upon. Increasing reliability will enhance trust. o Readable: The Customer is able to read Company’s actions and behavior. This means, actions from the Company is

• Make an internal survey to know the level of Customer orientation. In the next issue, I will explain as Part-3 of the article, about a questionnaire which can be used to assess the level of Customer orientation by the employees of the company and few points on that to improve further. Please send your inputs, remarks, opinions and suggestions to P.S.Satish, Mentor and Capability Developer, M/s Saraswati Industrial Services, Q-103, Mantri Paradise Apartments, Bannerghatta Road, Bangalore-560076. Email:gotopssatish@gmail. com;www.linkedin.com/ pub/satish-cp-pii/35/153/85b; www.satishps.com; Mob: 9845043202.

Customer satisfaction can be defined as the ratio of the Value customer gets to the Price he pays. Initiate measures to increase Customer satisfaction.

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TALENT MANAGEMENT

Present like a Leader Leadership is all about connection at the human level. It is about inspiring through a sense of belonging and a higher cause. To connect people to your vision, you need to be able to move your audience so that they want to take that journey with you. This is really the secret to Present like a Leader!

Pavan Sriram pavan@ittige.com

Giving presentations is a nervous time for everyone – managers or trainees. Some people love public speaking and act in spite of those nerves, whilst others would rather avoid giving presentations to an audience at all costs. In fact it has often been said that there is one thing that lots of managers fear the most and that is public speaking!

Whatever your view of public speaking and presentations is, you can bet you’re not alone. When it comes to presenting and speaking in public, we would agree with what the author Mark Twain said “There are two types of people in life. Those that get nervous when speaking in public and the liars!” Academic research demonstrates

the importance of nonverbal communication. A major study by Albert Mehrabian, professor emeritus of psychology at UCLA, assigns only a 7% value to the choice of words in face-to-face communications, while tone of voice has a 38% value and facial expression 55%. The study was measuring the impact of single words in a laboratory setting, not in

a presentation - but should be carefully considered by managers who agonize over choice of words and give short shrift to preparing their presentation. Successful leaders understand that what the audience sees in a presentation makes a stronger impact than the words they hear. We’ve been

Numerous building blocks go into the creation and delivery of a presentation for a manager, and all must blend seamlessly for the presentation to succeed

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Ask yourself, “Why am I speaking?” “What do I want the audience to do after listening to my speech?”

wired to take in information primarily through our eyes ever since we have been cave dwellers looking for food and shelter. At ITTIGE Learning, we help professionals and managers improve their effectiveness by significant margins by using the right presentation tools and techniques– let me share a few of them here in this article: Audience Connect: Consciously or not, the audience forms a bias for or against a presenter within seconds. We all make a tentative judgment about everyone we meet on scant evidence, though we may not admit it because we see ourselves as rational beings. More than anything else, it’s the personal impression you make that determines whether or not the audience accepts your message. You must come across as likable and trustworthy. The key for managers to being likable is simple - Show you

July 2015

like the audience and they’ll reciprocate. Once they like you they’ll give you the benefit of the doubt on trustworthiness. You’ll get a strong start toward likability if before you begin speaking you take a bit of time to look around the audience warmly, enthusiastically and with a big smile. Develop top-notch material: The basis for every great presentation is excellent material. Managers should plan ahead by conducting solid, scholarly research and developing key takeaways for the audience. Organize your material in advance to ensure that you can thoroughly move through key points and set aside adequate time for questions at the end. Create a dynamic learning environment by including opportunities for participants to interact and apply the concepts introduced. Practice like a pro: Whenever you prepare for a live presentation, you should

practice as if it were actually taking place. That means standing up, speaking aloud, delivering your points, and going through mock exercises. It may also mean days and weeks of endless preparation, depending on your learning curve. In the context of public speaking, it is often said that “People get rewarded in public for what they do in private.” Successful leaders embrace excellence because they know that however you show up in practice is how you’ll show up on the D Day. Present with Energy: Capture the audience’s attention right away by telling a dramatic story and keep the energy level high all through your presentation. To get them excited about your idea you have to show them your own excitement about it.Walk in strong, move confidently to where you’ll present, stand tall, smile, survey the room and begin to speak, with conviction. Last but not the least, making

a presentation puts you on public display. An audience not only listens to your ideas, it also responds to the way you use your voice and your body. Managers need more than a well written presentation to make an impact. You will also need to deliver it in a lively, flexible and interesting way. Hence continually explore your personal style using any or all of the above suggestions in different combinations for different effects. I look forward to hear from you at pavan@ittige.com on how you are putting together these critical components seamlessly to flow naturally in order to captivate your audience and make your presentation memorable and one that leaves a strong impression. Pavan Sriram is the Founder and CEO of ITTIGE Learning, a performance-based training company that works with c-level executives to improve learning outcomes.

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TALENT MANAGEMENT

Business Effectiveness using Big Data Analytics The era of big data is opening up much larger volumes and new,unstructured varieties of data for analysis, all of which informs a full view of a customer. But as organizations begin to execute on big data and analytics projects, many quickly run into a roadblock. How do they correlate the complete, accurate customerinformation necessary to perform a particular analysis? And howdo they do it without moving data from source to source.

Rajesh Angadi rajesh_angadi@hotmail.com

Big data analytics enables organizations to analyze a mix of structured, semi-structured and unstructured data in search of valuable business information and insights. Big data analytics is the process of examining large data sets containing a variety of data types -- i.e., big data -- to uncover hidden patterns, unknown correlations, market trends, customer preferences and other useful business information. Big Data is about much more than data. It represents a new way of doing business – one that is driven by data-based decisionmaking. Leveraging Big Data capabilities, large volumes of varied sources of data – both internal and from third-parties – can deliver “intelligence at the moment” - insight and intelligence derived from fast moving data sets can help inform split second strategy decisions, spur innovation, inspire new products, enhance

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customer relationships, uncover fraud, bolster operations and build competitive advantage. The analytical findings can lead to more effective marketing, new revenue opportunities, better customer service, improved operational efficiency, competitive advantages over rival organizations and other business benefits. The primary goal of big data analytics is to help companies make more informed business decisions by enabling data scientists, predictive modelers and other analytics professionals to analyze large volumes of transaction data, as well as other forms of data that may be untapped by conventional business intelligence (BI) programs. That could include Web server logs and Internet clickstream data, social media content and social network activity reports, text from customer emails and survey

responses, mobile-phone call detail records and machine data captured by sensors connected to the Internet of Things. Some people exclusively associate big data with semi-structured and unstructured data of that sort, but consulting firms like Gartner Inc. and Forrester Research Inc. also consider transactions and other structured data to be valid components of big data analytics applications. Big data can be analyzed with the software tools commonly used as part of advanced analytics disciplines such as predictive analytics, data mining, text analytics and statistical analysis. Mainstream BI software and data visualization tools can also play a role in the analysis process. But the semi-structured and unstructured data may not fit well in traditional data warehouses based on relational databases. Furthermore,

data warehouses may not be able to handle the processing demands posed by sets of big data that need to be updated frequently or even continually -- for example, real-time data on the performance of mobile applications or of oil and gas pipelines. As a result, many organizations looking to collect, process and analyze big data have turned to a newer class of technologies that includes Hadoop and related tools such as YARN, MapReduce, Spark, Hive and Pig as well as NoSQL databases. Those technologies form the core of an open source software framework that supports the processing of large and diverse data sets across clustered systems.In some cases, Hadoop clusters and NoSQL systems are being used as landing pads and staging areas for data before it gets loaded into a data warehouse for analysis, often in a summarized form that is

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more conducive to relational structures. Increasingly though, big data vendors are pushing the concept of a Hadoop data lake that serves as the central repository for an organization’s incoming streams of raw data. In such architectures, subsets of the data can then be filtered for analysis in data warehouses and analytical databases, or it can be analyzed directly in Hadoop using batch query tools, stream processing software and SQL on Hadoop technologies that run interactive, ad hoc queries written in SQL. Potential pitfalls that can trip up organizations on big data analytics initiatives include a lack of internal analytics skills and the high cost of hiring experienced analytics professionals. The amount of information that’s typically involved, and its variety, can also cause data management headaches, including data quality and consistency issues. In addition, integrating Hadoop systems and data warehouses can be a challenge, although various vendors now offer software connectors between Hadoop and relational databases, as well as other data integration tools with big data capabilities. Understanding and taking charge of your big business data needs are the next challenge. The CIO really needs to look beyond the bits and apps and really work with business heads to understand how they make decisions, and get them the data feeds and analytical tools they need to do this. As data volume increases, the ability to collect and present

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data in a way that the business can understand, so it can make decisions faster than the competition, will be the key to keeping the business competitive. Rather than just collecting and storing data, decisions need to be made about which data is of use to the business. The true value of data comes from being able to contextualize and understand it, in order to deliver insights which can give businesses a competitive advantage.Big data is a very scalable model. We can start off the big data journey without having large capital investment because there are interfaces for organizations to build big data clusters on the cloud, so we can start with a simple evaluation and if you find value, you can expand. Although big data skills are at a premium, the data scientists are “facilitators” and organizations need to be able to ensure big data is not just meaningful to specialists. Big data is not an ivory tower pursuit and if only data scientists have the keys to the kingdom, the field will not advance. It may take data scientists to ask the right questions and create the right configurations, but once it’s established it should be put in the hands of everyone within the organization.The technology for analytics and big data needs to be responsive and there are barriers. With how much data we’ve got and how fast it’s generated, you can hit bandwidth constraints. Naturally the move is towards more of a cloud model, but you need to understand the trade-off between processing in the cloud and moving data

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around, versus the cost of storage of data and in-house analytics. Everything we do has to improve the return on investment for ourselves and our customers. Organizations get hung up on what format and storage to use, but the important question is what you do with the data which is useful to the business. It’s what tools help you answer the questions you need to answer most efficiently and there are different tools for different scenarios, but there is a lot less difference than the purveyors of each world want us to believe.As data volumes continue to increase and business users become more familiar with the analytics process, more questions that they want answered will inevitably arise. The analytics team must be able to keep up with the additional requests in a timely fashion. Also, one of the requirements when evaluating big data analytics hardware and software options is assessing their ability to support iterative development processes in dynamic business environments. An analytics system will retain its value over time if it can adapt

to changing requirements. With interest growing in selfservice business intelligence (BI) capabilities, it shouldn’t be shocking that a focus on end users is a key factor in big data analytics programs. Having a robust IT infrastructure that can handle large data sets and both structured and unstructured information is important. How this Big Data app works: Many businesses know they want to implement a Hadoop data lake, but don’t know how to do so in a cost-effective, scalable way. Moreover, simply putting data into Hadoop does not make it ready for analytics. To use common analytics toolsets, you must know where data is, how it’s structured (or not) and where it came from. Big Data Examples Identifying three top customer analytics challenges Not all matching solutions are optimized for customer analyticsor big data. As companies embrace the era of big data, they mustchange the way they access, analyze

and process information.The following represent three top customer analytics challengesin a big data environment. 1. Ungoverned data: Customer data comes from internal andexternal sources and may be structured or unstructured. It isalso often ungoverned— sources like social data are not alwayssubject to normal enterprise quality-c control processes.Organizations need a matching solution that adapts to thedata quality variations from a variety of sources. 2. Unprecedented volume: Organizations cannot compromiseon the quality of their analytical decisions even as datavolumes increase exponentially. They need scalable solutionsto process and analyze larger amounts of customer dataand efficiently deliver results to the systems and people whoneed it. 3. Nonstandardized data: Because data flows in big dataarchitecture usually follow an extract, load and transform(ELT) pattern, there is no budget or time to undertakeexpensive data

standardization operations prior to processingthe data. Organizations need a matching tool that does notrequire costly, time- consuming data preprocessing. Big Data platform that harnesses both historic and current data to deliver superior data analytics for its various printer businesses. It can now gain valuable business insights to better understand customer needs, identify trends and develop new products and services, thereby driving growth and profitability. The cost effective data analytics platform is fully automated - can monitor job executions and log details about the readiness of clusters to process data and various statistics about the input data being processed. Email alerts are sent to the relevant audience in the event of a job execution failure. By offloading advanced analytics to the Hadoop platform, processing times have reduced dramatically. This is going to help the organization for Data Analytics strategy to provide high efficiency and effectiveness.

Analytical Challenges in Big Data Environment

Ungoverened Data

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Unprecedental Volume

Nonstandardized Data

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Corrugated hose 2.0: igus presents new ideas in energy supply With the e-skin and e-shell, discover new options for flexible and affordable cable guiding igus GmbH presents an entirely new idea: the e-skin. This easy-to-open hose can self-supporting contrast to comparable products, and can even be used in the clean room for short unsupported lengths. For Corrugated hoses, the advantage is that they are light, versatile and can guide energy, media and data at very low costs. With the e-skin and e-shell, igus shows the development potential hidden in this product and how it makes moving energy even easier.

short unsupported lengths as a horizontal energy supply system. With its oval design the modular, expandable tube also offers more space than round corrugated hoses. Cables can be guided carefully using interior separation modules. Likewise, the e-skin can be tailored individually for each application by selecting different materials. The injection moulding process also allows for different colours, different even for the lower or upper part – and even for small quantities.

possible as they are required, for example, in pick-and-place applications. Because it is abrasion resistant, dust-proof and waterproof, it can also be used in clean room environments.

igus also provides an additional tool with which the hose can be opened and closed quickly. In contrast to the conventional corrugated hose, the e-skin has a defined direction of movement and also can support itself. It can therefore be used for

By virtue of the construction method and the high flexibility, the e-skin can be used in a variety of industries-from machine tools and medical technology through to sophisticated electronics manufacturing. Here, high speeds and accelerations are

In addition to the e-skin, igus offers reinforcement for existing corrugated tube systems: the e-shell. The clip is easily attached to the normal corrugated hose, so that filling can be done at the top side of the joints of the corrugated hose. It is stabilised so that it can only move in one direction. Due to the guide elements

& GOST standard or as per party’s samples or drawings. The threads are of MM size, Coarse & Fine pitch, BSW, BA, No size 4 to 12 no., UNC, UNF BSF & BSP threads. These items are used at Electricals & Electronics, Machine Tools, Heavy Engineering Industries, Automobiles, Hydraulic, Pneumatic, Textiles, Material Handling, Pump & Valve, etc. and such other various Industries.

ZIP have also developed Self Tapping screws, Philips star punch type and slotted type, Pan hd., CSK hd., Mashrum hd., Trussed, Raised, Hex hd., Washer forged type, B - AB - BT cut & Self drilling type STS Sc., Hex and Square hd Type Wood sc., Coach Bolt. It can be supplied as per IS, DIN, BS, JIS, ISO standard or as per party’s samples or

e-skin can be used in the clean room for short unsupported lengths.

The e-shell: reinforcing existing system

on both sides, the corrugated hose has self supporting capability. If this solution is used for several corrugated hoses, they can be reliably guided side by side. Thanks to the defined minimum bending radius, the e-shell safely and reliably protects the cables in the corrugated hose. For more details visit www.igus.in

ZIP’s Hex series ZIP have developed Hex Head Standard Thread Length Bolt, Hex head Full thread screws, Hex head Slotted type, Flanged Sc., Machine Bolt, Flanged type Serrated sc. / bolt, BT cut Hex head sc., Cone point sc., Hex head Tapper thread sc., Hex small thread length plug and Hex head Coach Bolt, Wood sc. Type thread, 3 to 56 mm, 1/8 to 2”, 6 to 0 BA & No. size 4 to 12 no. It can be supplied as per IS, DIN, BS, ISO, ASTM

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drawings. For more details, visit www. zip-india.com

July 2015

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MART UPDATE

For maximum safety and precision. Backlash-free ROBA®-guidestop safety brakes available in new construction sizes The backlash-free, highly rigid ROBA®-guidestop profiled rail brakes guarantee maximum safety. In machine tools and machining centres, they additionally increase the process accuracy and machining performance. Mayr® power transmission now offer this innovative brake concept in eight construction sizes, covering nominal holding forces from 5 to 34 kN.

in machines and systems – especially if people are positioned below them. With the ROBA®-guidestoptype series, mayr® power transmission have developed a reliable safety brake and backlash-free clamping unit for profiled rail guides, which brakes movements safely and quickly, and which clamps the axes rigidly and backlash-free during the running process. The brake specialists are now Suspended loads present a expanding this tried-and-tested substantial potential hazard concept to eight construction sizes, hereby covering nominal holding forces from 5 to 34 kN. The designs are dimensioned Figure 2: Installation position of the ROBA®for four rail guidestop in the carriage: The innovative brake sizes made by concept clamps directly onto the profiled rail with established a high degree of rigidity. linear guide manufacturers. Also new are the compact design in short constructional design and the integrated switching condition monitoring with contactless proximity switch.

Figure 3: The safety brake ROBA®-guidestop is applied directly to moving masses of the vertical axis. It therefore provides a high degree of safety, and, in combination with a reliable control unit, is optimally suited to minimising the hazard risk to people pursuant to the safety standard DIN EN ISO 13849-1.

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Safety for vertical axes The innovative brake concept clamps with a high degree of rigidity and has a direct effect on the linear

guide. This creates a decisive advantage, especially for gravity-loaded axes, where the hazard risks to people must be minimised: Drive elements between the motor and the moving mass such as spindles, spindle nuts, shaft couplings Figure 1: The backlash-free safety brake ROBA®-guidestop guarantees maximum or gearboxes, have functional safety. Furthermore, the additional no influence on rigidity of the NC axis also ensures increased safety – this differs process accuracy and machining performance. from concepts featuring a motor brake, in which all drive elements This allows either doubled transmit the braking torque holding forces or a redundant up to the carriage. In addition, design. every element between the brake and the carriage has a More accuracy and negative effect on the rigidity. performance Therefore, ROBA®-guidestop The additional rigidity of safety brakes are significantly the NC axis increases the more rigid than motor brakes. process accuracy, improves Maximum functional safety the machining performance and can provide further The ROBA®-guidestop safety technical advantages, for brakes work according to example in heavy machining. the fail-safe principle; this The machining process is less means that they are closed subject to vibrations, which in de-energised condition. has a positive influence on the Pre-tensioned cup springs surface quality of the part. press the brake shoes onto the When the axis is at a standstill, “midsection” of the profiled for example during machining, rail and the rail is clamped. The the ROBA®-guidestop brake ROBA®-guidestop is released takes over the load. This means hydraulically with a nominal that the drive motor can be pressure of 70 bar. This is switched off and removed relatively low in comparison from the control system during to the very high holding forces this phase. The closed brake otherwise required. The brake absorbs axial forces. Downtime mechanism is designed for intervals and maintenance relatively long stroke paths. intervals are extended. The ROBA®-guidestop safety brakes are designed with For more details write to two brake circuits working National Engineering Company independently of each other: at nenco@nenco.org

July 2015

Red Lion unveils Next Wave of Compact NT24k Gigabit Ethernet Industrial Switches The new NT24k 10-to-14 port DIN-rail mountable switches feature Fast Ethernet, Gigabit or dual-mode fiber ports alongside eight Gigabit copper ports with optional IEEE802.3af/ at Power over Ethernet Plus (PoE+) support.

Red Lion’s newest NT24k switch models include: • NT24k-FX: switches with 8 all-Gigabit copper and 2, 3, 4 or 6 100Base fiber ports that are available with SC or ST connectors in multimode or singlemode • NT24k-GX: switches with 8 all-Gigabit copper with 2, 3, 4 or 6 Gigabit fiber ports that are available with SC connectors in multimode or singlemode

July 2015

• NT24k-DM4: switches with 8 all-Gigabit copper ports with 4 SFP expansion slots for optional 100Base or Gigabit SFP transceivers Available with optional PoE+ support, each switch accepts redundant 22-49 VDC power input and offers a step-up power boost circuitto eliminate the need for a standalone 48 VDC power supply.In addition, Red Lion’snewPoE+switches provide up to 240 Watts PoE output power (30 Watts per Gigabit copper port). With a hardened metal housing, each NT24k switch provides industry-leading shock (200 g) and vibration (50 g) tolerance coupled with up to a -40° to 85°C operating temperature

range to ensure optimal SMPS in network performance the harshest industrial environments.

DC/DC Converter

Water Proof SMPS

Red Lion’s rugged NT24k platform offers a full set of management features and advanced Adaptor 3 Phase Transformer LED Drivers security to ease network deployment with key functionality with RADIUS remote server that includes Jumbo authentication. NT24k switches Frame support, SD card and are UL Class 1, Division 2 Listed XML configuration backup for use in hazardous and and restore, auto-IGMP 1 Phase Ethernet/ Transformer Battery Charger Solarare Lartern ordinary locations and ABS configuration, type certified for shipboard IP™ with CIP™ messaging, 65, Laxmi Jandli, Ambala City (Haryana) India. Tel: +91-171-2801711/3291897 applications. N-Ring™ andVihar, N-Link™ ring technology with Fax ultra-fast : +91-171-2801289 Mobile : +91-9416020078/9215720078 For more information and (30 ms) N-View™ / naceiamb@gmail.com Emailrecovery, : nacei@rediffmail.com Website : www.nacei.com specifications, visit www. monitoring technology, event redlion.net/NT24k logging, SNTP and IEEE802.1x

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Bureau Veritas and Green Business Certification Inc. (GBCI) Sign Global Agreement for LEED Certification In a recent signing ceremony, Bureau Veritas and Green Business Certification Inc. (GBCI), the certification body for the U.S. Green Building Council’s LEED green building program, finalized the terms of their exclusive global agreement to facilitate LEED certification internationally. LEED is the world’s foremost program for the certification of design, construction, maintenance and operations of green buildings, with more than 1.8 million square feet of commercial building space certified daily. There are currently more than 69,000 LEED building projects located in over 150 countries and territories, with approximately

44% of all square footage outside the U.S. As part of the agreement, Bureau Veritas teams around the world will review LEED projects for conformity with GBCI’s strict standards for certification. Immediate plans for local LEED review teams have been drawn up for China, Brazil and India, where Bureau Veritas employs a total of approximately 21,000 staff. Local review teams will allow enhanced customer engagement and local support for LEED while advancing the goal for future site verification as part of the LEED certification process. Bureau Veritas is the world’s

leading conformity assessment service provider in the Building & Infrastructure industry. The partnership shall enhance Bureau Veritas’ service offerings and at the front of a growing and important global market. The first buildings to be certified by Bureau Veritas within this partnership are due to be delivered in late 2015. The growth of LEED reflects its global adaptability as the world’s most widely used and recognized system guiding the design, construction, operations and maintenance of green buildings. LEED is a critical tool in creating structures that mitigate greenhouse gas emissions; create healthier indoor

environments for workers, students and community members; and lower utility bills for building owners through reduced energy and water use. For more details visit www.bureauveritas.com

Dorner’s New 2200 Series Precision Move Pallet System Conveyor are Perfect for the Assembly Automation Market With a unique pin tracking system to guide pallets through 90 turns, and a fast belt change capability without the need to remove the conveyor from the system, Dorner’s 2200 Precision Move Pallet Systems are designed to increase efficiency and reduce downtime in various assembly automation processes. Coupled with fast delivery of less than 20 days, this conveyor platform is perfect for the assembly automation, manufacturing and packaging industries. Ideal applications include Automated

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Assembly, Manual Assembly, Product Testing and Inspection. The pallets on this conveyor range from 160 mm to 480 mm, giving the customer the flexibility to select the proper size to move the product. During operation, pallets move on twin dual strand timingbelt conveyors. This design provides many benefits to end users, including ddded load capacity in a small platform (up to 250 lbs accumulated), quick belt change without the need to remove conveyor from

system, widths (160, 240, 320, 400 and 480 mm), lengths up to 7,500 mm, 20 days or less delivery time, clean room class 100 Certification on the conveyor. These engineering designs position the 2200 Series Precision Move Pallet conveyor as the go-to platform for applications in machine integration, robotic pick-n-place, precision

indexing, accurate part positioning, timed conveying, and inspection. For more information visit www.dornerconveyors.com.

July 2015

Achieve Flow Tuning Excellence With the New EXTRUDE HONE™ MF PROGRESS™ New EXTRUDE HONE™ PROGRESS Kennametal Precision Surface Solutions’s EXTRUDE HONE™ MF PROGRESS™, featuring a flow targeting accuracy to +/-1% aimed at orifices 100-350 μm in parts less than 30 mm in diameter and flow rates up to 5 L/min. “Additionally, customers benefit from a self-contained modular construction for each process (grinding, flush, flow testing, etc.) and configurable hardware (manifolds, frequency drives, etc.)” MICROFLOW Explained • MICROFLOW is the real-time monitored flow of abrasive media through small passages,

July 2015

such as fuel-injector spray holes. • It achieves specific, repeatable processing results, including edge radius, micro-hole size and surface finish. These changes to small-hole geometry improve part function and performance. • Media flows in one direction, similar to part operation. • Increased flow is attributed to subtly changing the geometry of the opening entrance (opening exit usually is not affected). • MICROFLOW processing involves pressure drop, flow rate, geometry, and fluid properties; machine design and dynamics; work piece characteristics; media properties and processing procedures. • Exclusive range of standard and customized MICROFLOW

media with specific properties perform a step beyond classical hydro erosive liquid. EXTRUDE HONE™ MF PROGRESS is available in various inside station layouts: flow tuning, media reclaim, flush module, test module, marking, thanks to the system’s modular design and construction. It is easy to configure and easy to fit into modern production lines ready for robotic or other handling system automation. The machine also comes with expanded onscreen maintenance capabilities and improved filtration to further pump and valve life.

EXTRUDE HONE™ MF PROGRESS provides for online monitoring and control of all relevant parameters. The online feature is also beneficial in delivering remote process demonstrations and gathering resulting data. For more details, write to: extrudehone.sales@ kennametal.com

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RESOLUTE™ encoder system wins prestigious innovation award Renishaw, the global metrology specialist, earlier this year received a Queen’s Award for Enterprise 2015 in the Innovation category for its world-leading RESOLUTE absolute position encoder system. This prestigious award follows a rigorous and highly competitive entry process and is awarded only to top UK businesses. How is the RESOLUTE absolute encoder innovative? Renishaw’s RESOLUTE encoder system won the award by demonstrating a uniquely innovative design

with outstanding commercial success over the last 5 years. RESOLUTE is the world’s first single track fine-pitch optical absolute encoder and is recognised as leading technology in the absolute encoder market. The readhead captures a near instantaneous image of a coded measuring scale, which comprises a single data track with a nonrepeating barcode-like strip of 15 µm wide light and dark lines. Unlike other products in the marketplace, complicated guiding arrangements are not needed to maintain alignment between the readhead

and scale, eliminating mechanical hysteresis and measurement errors. Four of the most innovative features of RESOLUTE’s design and production process include: First is a new imaging based system, rather than a traditional interferencebased optical technology, comprising a lens system for the best stability and accuracy of metrology. The readhead uses specially designed custom components including a high reliability point source LED, an imaging lens, a beam splitter and custom 320-pixel linear image sensor capable of 150,000 frames per second. Advantages of this system include rapid position acquisition on demand, exceptional dirt immunity as a result of significant absolute scale code redundancy, low Sub-Divisional Error (SDE) of ±40 nm and low jitter (noise) of 10 nm RMS. Secondly, novel and fast algorithms for increased safety and position reliability. Two independent algorithms operate within the readhead to compute its position with respect to the scale, giving maximum confidence that the declared position will be

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correct at all times. Thirdly, development of new scale manufacturing techniques to allow the production of a single barcodelike pattern on both linear and rotary scales - allowing, for the first time, scale manufacturing capability beyond an accuracy of 1 µm for linear scale and below an arc-second for rotary scale. Fourthly, exceptional dynamic performance that matches the performance benefits of current incremental systems, using only a single absolute track, and breaks the speed / resolution trade-off which plagues traditional encoders. Other award winning added benefits of RESOLUTE include the removal of homing operations, large installation tolerances, high-speed traversing rates and flexible readhead and scale options. For more details visit www.renishaw.com

July 2015

DMG MORI with 7 world premieres at EMO DMG MORI will be confirming its status as a world market leader in the field of metalcutting machine tools with 7 world premieres as well as a representative cross-section of its high-tech portfolio at the EMO in Milan.

EMO DMC H dB Performance. Horizontal heavy duty machining of the extra class.

July 2015

The EMO in Milan will provide DMG MORI with the perfect showcase for new advanced technologies and innovative products. From 5 to 10 October 2015, the technology partner will be presenting a total of 7 world premieres at its stand in Hall 4. In the field of turning technology, there are 4 world firsts: the production turning machine SPRINT 32|5 (including the equally new extension stage to SPRINT 32|8) built in Italy, the second generation of the turning & milling machines CTX gamma TC in two sizes and the NLX 6000|2000 turning/milling centre for large components. The three milling innovations originate this time from the 4th generation of the duoBLOCK® series. Other highlights of DMG MORI’s trade fair presentation

are the introduction of the automatic lathes from DMG MORI WASINO that have been strengthening the DMG MORI product range since 1 April 2015. The EMO world premiere SPRINT 32|5 and its upgrade SPRINT 32|8 are “made in Italy” as well as the universal turning machines NLX 2500SY|700 and CTX alpha 500. The turning & milling machining centre CTX beta 1250 TC, the production turning machine SPRINT 50 and the automatic multi-spindle machine GMC 20 ISM are other EMO exhibits made in Italy. For more details visit www.dmgmori.com

EMO SPRINT 32-5 AR: The SPRINT 32-5 is equipped with five linear axes in total as well as a C-axis for the main spindle.

EMO DMC dB torqueMASTER 5X-torqueMASTER with 80% more torque.

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MART UPDATE

Economic Long runner – the diphragm valve type 604/605 GF Piping Systems adds the new diaphragm valve type 604/605 with integrated pneumatic actuator to its extensive product range. This long runner – available beginning of October 2015 – combines compact design with best flow performance for an economic price-performance ratio. The valve’s compact design fits standard installation lengths. Its integrated pneumatic actuator with quick opening and closing times enables more than one million closing cycles over its long service life. That is what GF Piping Systems calls a durable hard worker. The valve is flexible in its operating modes and offers fail safe to close (FC), fail safe to open (FO) and double acting (DA) options.

The actuator housing can be opened quickly for service due to the central housing nut. The connection with the valve body is full plastic without any metal parts.Therefore all materials have the same temperature expansion coefficients which prevents leakages and avoids re-torqueing of screws. Thanks to the optimized linear flow characteristics the kv value is up to 30 percent higher than with comparable valves. The valve is available in DN15 with the pressure rating of PN6. The small six-arms phenomena is living all over the world in equally cozy or harsh environments. Like the GF Piping Systems diaphragm valves. The wide range of materials offers highest adaption and resistance to chemical fluids and

environments. The valves are available in PVC-U, CPVC, PP-H and PVDF. Diaphragms in EPDM, FPM, PTFE/EPDM and PTFE/FPM enable the handling of aggressive media as well as neutral fluids. That makes them even more flexible and reliable for all your applications. Valve type 604 can be mounted into your system with true union connection matching all standard GF unions and inserts and solvent cementing. Valve 605 comes with a sealed or resealable nozzle. The valves meet the standards ISO, BS, ASTM and JIS. The new diaphragm valve will communicate with you as well. A unique QR code on the product leads to installation manuals, online training videos and certifications.

Open your application in water treatment, the chemical process or other industries for the diaphragm valve type 604/605 and you will be astonished what this small valve can handle. For more information, visit www.gfps.com

Easy Import of Symbols from Siemens TIA Portal The new version of Softing’s dataFEED OPC Suite supports the direct import of symbols from Siemens TIA Portal projects. The new dataFEED Exporter tool, which is now part of Softing’s dataFEED OPC Suite (V 4.03) allows importing symbols from Siemens TIA Portal projects (version 13 or 13 SP1) for a direct OPC Namespace configuration. The OPC Client applications receive the information for symbolic addressing from the dataFEED OPC Suite’s integrated OPC- or OPC UA Server and can use the symbolic names to access the data items of the respective data blocks. This approach overcomes the time-consuming

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manual configuration of data items and results in significant time- and cost savings for the user. The dataFEED Exporter supports both newer types of Siemens controllers like SIMATIC S7-1200 and -1500 as well as the older Siemens controller types SIMATIC S7-300 or -400 and is now available from Softing. Softing‘s dataFEED OPC Suite combines OPC Server and OPC Middleware functionality into one compact software solution. The integrated OPC UA Server allows the simple integration of legacy and new controllers into “Industrie 4.0”* solutions. Components without OPC UA Server, like for example Siemens S5

controllers, can thus be easily integrated into OPC UA Client applications. The state-of-the-art graphical user interface with intelligent, practice-oriented default settings and intuitive user guidance is designed to make it exceptionally easy for plant manufacturers and maintenance engineers to quickly configure OPC communications. The highly scalable dataFEED OPC Suite provides users with the flexibility to pick and choose only those components that perfectly fit the application requirements. More information is available on the website: http:// industrial.softing.com/index.

php?id=2659 *Industrie 4.0 is a German government-driven initiative for implementing an industrial “Internet of Things”

July 2015

High-performance machining with maximum safety The SCHUNK high-performance hydraulic expansion toolholder TENDO Aviation was developed especially for demanding applications with a requirement for mechanical tool locking, for example in the field of aviation and aeronautics. For tools with a standard Weldon shank, the integrated pull-out protection ensures form-fit clamping of the oriented tool and prevents micro creep movements. Benefits of two clamping systems SCHUNK TENDO Aviation combines the strengths of hydraulic expansion technology with those of Weldon mountings: the impressive features include permanently high run-out accuracy, perfect vibration damping and quick tool changes with the use of an Allen key. Even jobs with demanding

July 2015

tolerances can be maintained with high precision. The potentials of the tool and the machine can also be fully utilized. SCHUNK TENDO Aviation enables a maximum torque transfer with continuously high precision and process stability. It offers considerable advantages over traditional Weldon mountings and heat shrink toolholders whose run-out precision diminishes over time. It prolongs the life of the tool cutting edge, and increases the tool life travel all while producing brilliant surfaces. In addition, the even load profile increases the life of the spindle and spindle bearing. Like all SCHUNK hydraulic expansion toolholders, SCHUNK TENDO Aviation needs no additional peripheral equipment, which can be expensive. The clamping diameter is flexible

and can be reduced by means of intermediate sleeves, which allows the same toolholder to be used for different shank diameters. Unlike ER collet chucks or heat shrink mountings, the affordable high-end toolholder is resistant to dirt, and features a SCHUNK TENDO Aviation setsa new low-maintenance benchmark for high-performance cutting. design. To increase the life of the toolholder while ensuring alloys in metal processing. The maximum process stability precision toolholder, which is in sensitive processes, the manufactured exclusively at precision toolholder can be the SCHUNK headquarters in inspected by SCHUNK Service Lauffen, Germany, is available in performance checks and for the interfaces HSK-A63, optimized, if necessary. It can be HSK-A100, SK-40, BT-40 (ø 20 used for machining of turbine mm and 32 mm) as well as SK-50 blades or fuselage frames in the and BT-50 (ø 20 mm; in addition, aviation industry, turbochargers ø 32 mm is planned). rotors and steering wheels For more details visit www. in the automotive industry in.schunk.com and titanium- or nickel-based

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THE LAST LEAF Dear Readers, Farming is India’s largest employer. Much in our country’s economy depends on Monsoon. Three-fifths of the land under cultivation is watered only rainfall. The government recently announced that it would focus on improving irrigation in the non rain-fed areas through the Rs. 50,000 crore Krishi Sinchai Yojana. The new scheme assumes importance as 65 percent of the total 142 million hectare of cultivable farm land in the country is still not covered by irrigation. In the automobile manufacturing sector, India contributed about 43 percent of Suzuki’s global sales in FY15. Suzuki said it expects the passenger vehicle market in India to grow at a compounded rate of 11 percent for the next five years to 5 million units and become the third largest passenger vehicle market globally by 2020 and Suzuki expects Indian base to retain its high 45 percent market share, despite stiff competition. They plan to launch 20 models over the next five years. As the world moves towards connected cars - Suzuki wants India to play key role in development of information communication technology in India. The other car company, Fiat Chrysler will invest $280 million to begin Jeep production in India from 2017 through an expanded joint venture with Tata Motors. Assembly of a first Jeep model will begin in the second quarter of 2017 at Fiat’s plant in the western state of Maharashtra, Fiat Chrysler said. Fiat and Tata already build cars together at the site. By 2018, the carmaker aims almost to double the 1 million Jeep sales recorded in 2014. Jeep’s expansion plan relies heavily on India, set to become the world’s third-largest auto market behind China and the United States by 2020, according to forecaster IHS Automotive. In the global news, Detroit emerged from bankruptcy last year, and resurgence in manufacturing is seen as a major pathway to continued recovery. The federal bailout of GM and Chrysler helped bring the auto industry back from the brink, and today the Big Three U.S. automakers, including Ford and the foreign competitors that have built American factories, are thriving. A confluence of factors—including public and private initiatives, high-tech incubators, philanthropic fundraising, an influx of venture capital and a craftsmanship movement—are bringing Detroit back from the depths of municipal bankruptcy and widespread unemployment, which stands at 7.8 percent in metro Detroit, according to the U.S. Bureau of Labor Statistics. Leading-edge technology, innovation and entrepreneurship—that are reconfiguring Detroit’s legacy as a place that makes stuff. Coming to the technology and innovation, Drones may one day transform the way parcels are delivered, crops monitored and suspects apprehended. Joshua Smith, a computer scientist, started a company Wibotic that plans to recharge Drones without having them to establish a physical connection with the plug. LaserMovie, another USA-based company, is developing a system to replenish the batteries of drones that are still aloft, using lasers and photovoltaic cells. We need your input on any industry news, views and any observation about the industry around you. Your feedback will be useful to us to better inform our readers about a better tomorrow. Till then, Happy Technology! Manoj Kabre Member, Editorial Advisory Board

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KEMPPI INDIA PRIVATE LIMITED Lakshmi Towers, 2/770, Kazura Garden 1st Street, Neelankarai, Chennai - 600 041 Phone: 044-45671200 Email: sales.india@kemppi.com Web: www.kemppi.com

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