Industry 2.0 September 2010 - Part II by bhupinder sharma

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INDUSTRY 2.0 - TECHNOLOGY MANAGEMENT FOR DECISION MAKERS

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editorial Vol. 10 | Issue 01 | september 2010 | Vol. II

Managing Director: Dr pramath raj sinha Printer & Publisher: Kanak Ghosh Editorial Group Editor: r Giridhar Associate Editor: p K Chatterjee Sub-Editor: reshmi menon dEsign Sr. Creative Director: Jayan K Narayanan Art Director: binesh sreedharan Associate Art Director: Anil VK Manager Design: Chander shekhar Sr. Visualisers: pC Anoop, santosh Kushwaha Sr. Designers: tr prasanth & Anil t Chief Designer: N V baiju Photographer: Jiten Gandhi brand managEmEnt General Manager: Nabjeet Ganguli salEs & markEting VP Sales & Marketing: Naveen Chand singh (09971794688) National Manager-Events & Special Projects: mahantesh Godi (09880436623) National Manager Online: Nitin Walia (09811772466) Assistant Brand Manager: Arpita Ganguli GM South: Vinodh Kaliappan(09740714817) GM North: pranav saran(09312685289) GM West: sachin N mhashilkar(09920348755) Coimbatore: D K Karthikeyan (09843024566) Kolkata: Jayanta bhattacharya (09331829284) Production & logistics Sr. GM Operations: shivshankar m Hiremath Assistant Production Manager: Vilas mhatre Logistics: mp singh, mohamed Ansari, shashi shekhar singh officE addrEss Nine Dot Nine Interactive pvt ltd C/o Kpt House, plot 41/13, sector 30 Vashi (Near sanpada railway station), Navi mumbai 400703 For any information, write to info@industry20.com For subscription details, write to subscribe@industry20.com For sales and advertising enquiries, write to advertise@industry20.com printed and published by Kanak Ghosh for Nine Dot Nine Interactive pvt ltd C/o Kpt House, plot 41/13, sector 30 Vashi (Near sanpada railway station) Navi mumbai 400703 Editor: Anuradha Das mathur C/o Kpt House, plot 41/13, sector 30 Vashi (Near sanpada railway station) Navi mumbai 400703 printed at silverpoint press pvt. ltd, D 107, ttC Industrial Area, Nerul, Navi mumbai 400706.

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CelebRatinG an industRial

reVIVAl

R Giridhar editor@industry20.com

anufacturing in India is on an upswing. this is a welcome sign—after a muted year. sectors like capital goods, consumer products and autos have registered strong sales numbers in the past few quarters—and many production facilities are running at full capacity to capitalize on the robust demand. the flurry of press releases in recent weeks announcing capacity expansions, new facilities and product launches reinforces the view that confidence in the economy is strong, and that producers are bullish about future prospects. powering this positive sentiment is unabated consumer demand from small towns and rural areas. the aspirations and needs of the country’s vast hinterland are being increasingly shaped by television programming, and are supported by enhanced rural incomes. As consumers become better informed about choices, companies are scrambling to re-jig product offerings through re-design and re-engineering. this vast, emerging market has also created new profitable niches and opportunities for smaller companies— spawning new industrial activity. the Government has also been investing large sums of money to create and improve infrastructure, and has been opening hitherto closed sectors to private investment. the consequent acceleration of activity in areas like power plants, metro railways, highways, ports and civic

industry 2.0

infrastructure has boosted the cement, steel, and the capital goods industries. It has also had a cascading positive impact on suppliers to these industries. With the economy predicted to maintain its pace, all these sectors are likely to do well—and this has spurred additional investments in capacity expansions and new facilities. then there is the growing trend of foreign investment in manufacturing. overseas companies that were hitherto dealing in imported and traded products are setting up manufacturing and assembly plants to reduce costs, customize offerings and increase speed-to-market. other multinational companies are expanding capacities to service regional and international markets from India, or are moving production here to benefit from lower costs and enhanced engineering capabilities. this trend is bringing in new technologies, systems and processes into the country, and helping improve product quality and manufacturing skills. With the defence and aircraft purchase offset clauses set to kick in, the manufacturing sector will experience more activity. this issue of Industry 2.0 magazine is a celebration of the revival in Indian manufacturing—and our effort to honour and recognize manufacturing organizations that have demonstrated exceptional performance in the year gone by. And even while we recapitulate history, we believe that our top 500 will shine even brighter in the years to come.

- technology management for decision-makers | september 2010 | Vol. ii

contents 2.0

36 cover story In our 8th annual ranking of the Top 500 companies in India, we present companies, both large and small, that have turned in an exceptional performance during the financial year 2009.

top Cover design: Binesh Sreedharan

Manufacturing

SMBs

opinion 08 2D and 3D Let us get together There is no need to take an either / or approach in the case of 2D and 3D—instead there is room for both.

event report 10 Tapping endless opportunities Performance Plastic Summit 2010—Trends and Advances in Performance Plastics, held in Mumbai recently, focused on key issues, new developments and processing requirements of the speciality plastics industry.

11 Solving constraints with value chain planning

in conversation

Oracle in association with Industry 2.0

organised a series of multi-city events on value chain planning in New Delhi, Mumbai and Chennai.

12 DIESL Chennai Although the Indian logistics outsource market is expanding at the highest rate in Asia, the focus is still mostly on just cost reduction.

14 Changing management mindset The global community of Growth, Innovation and Leadership (GIL 2010), held in Bangalore recently, highlighted the need for transformation in the management mindset, to accelerate growth of the automation software market.

Methodology Top 500 SMB rankings Top 20 sectoral rankings

37 38 118

Sector reportS Gems & jewellery Textile Pig iron Base metals Cement Pesticides

128 130 131 132 133 134

materials & processes 20 Maximizing machine shop productivity Small and medium businesses need to focus on three main factors to increase machine shop productivity—proactive maintenance, stremalined inventory management and highperformance lubricants.

information technology 21 Enhancing supply chain efficiency by RFID technology Improving supply chain efficiency and escalating the speed at which goods move from the manufacturer to the consumer is more than a business mandate today; a subject of business survival.

management & strategy 28 Five ways CFOs can make cost cuts stick An insight into how to make costs cuts last as successes in cost cutting erode with time.

departments Editorial.......................................01

15 ROBINSON FERNANDEZ SR. VICE PRESIDENT (APPLICATION) GEI INDUSTRIAL SYSTEMS

16 JAYARAM PILLAI MANAGING DIRECTOR – INDIA RUSSIA & ARABIA NATIONAL INSTRUMENTS

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26 VIJAY BABU CEO VORTEX ENGINEERING

- technoLogy management for decision-makers

Industry.Update.......................... 04 Advertiser.Index......................... 18 Product.Update........................ 135

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industry update Gontermann-Peipers Plans Expansion

ontermann-Peipers India has planned to extend its product portfolio with the launch of 6000 tpa value added castings project. The implementation involves an expenditure of Rs 48 crore and would cater to sectors like mining, power, railway

and defence. The company has enough land bank at its existing plant at Pailan for the project, which is expected to be operational within 18 months. This is in addition to the modernization/expansion undertaken by the company at an outlay of Rs 75 crore (approximately), which is expected to be completed shortly. This project is expected to increase the manufacturing

capacity from the current 15,300 MT to 21,000 MT. The company has also developed the high speed steel rolls, which acts as an import substitute. Meanwhile, the company has entered into a Memorandum of Understanding (MoU) with the Government of Chhattisgarh to set up a pelletisation plant of 1.2 million tonnes per annum in Chhattisgarh. The capex for the expansion is to the tune of Rs 300 crore. “Chhattisgarh in Central India is one of the favoured destinations for manufacturing companies in the country due to tremendous support from the government in developing the industry. The MoU will help us meet increased customer demands and deliver quality products,” said Lalit Poddar, Managing Director, Gontermann-Peipers India. Established in 1966, GontermannPeipers (India), is an engineering company engaged in the manufacture of cast and forged rolls, a key consumable of the hot rolled and cold rolled steel mills.

BGR Energy Signs JV Agreement With Hitachi

GR Energy Systems has entered into a joint venture (JV) agreement with Hitachi Limited Japan and Hitachi Power Europe, Germany. The first joint venture with Hitachi Limited, Japan is for the design, manufacture, installation and commissioning of supercritical steam turbines and generators for thermal power plants while the second joint venture with Hitachi Power Europe, Germany is for supercritical steam generators for thermal power plants. With the establishment of these two ventures, BGR Energy is aiming to offer complete boiler and turbine-generator solutions to the Indian power industry.

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The company has also set up a JV company, BGR Turbines Company, for this purpose, which will have its manufacturing facility in Tamil Nadu, involving an estimated investment of Rs 3,000 crores. BGR Energy will hold 74 per cent stake in the joint venture while Hitachi Limited will hold the remaining 26 per cent stake. The JV is expected to commence production in 2012 and will have a capacity of 3000 to 5000 MW per annum. Hitachi Power Europe, Germany, a subsidiary of Hitachi Limited (Japan), designs and constructs fossil fuel-fired power plants.

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Summit Highlights Container Scenario

he Supply Chain Leadership Council (SCLC) recently organised the first edition of ‘India Container Logistics Summit’ in Mumbai. The event brought together fresh perspectives on the evolving container logistics landscape. Vishal Sharma, MD & CEO, Tuscan Ventures, likened the container to the personal computer in terms of its benefits to society suggesting that it’s containers that have helped the rise of Asia, especially China, the rise of America in being able to outsource production and reduce costs. Manish Saigal, Executive Direction and National Industry Head – Transportation & Logistics, KPMG, predicted the container traffic in India to double to 16 m TEUs within the next five years and quadruple to at least 30 m TEU within the next decade. Saigal also released a paper comprising recommendations of the private players in container logistics business to the Government of India. This paper was submitted to the Ministries of Shipping, Railways and the Planning Commission.

CSCMP Organizes Lecture On TOC

“F

irst, know the goal of your business,” said Professor Rajiv Misra of XLRI, Jamshedpur, at a recent Council of Supply Chain Management Professionals (CSCMP) lecture series on ‘Theory of constraints,’ held in Mumbai. He is an expert in Dr Goldratt’s Theory of Constraints (TOC) that was first put forward through his best seller book ‘The Goal’. According to Professor Misra, organizations in India have benefitted in executing repeatable tasks. However, he was clear that the benefits in completely new projects have been limited.

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industry update Study Focuses On Procurement Consulting

and diverse practices and non-standard processes were being implemented simultaneously. The study also recommended key considerations for organizations planning to develop best practices in consulting procurement. The suggestions include selecting the optimum sourcing approach, defining the scope of the engagement to be delivered, enrolling and aligning stakeholders, selecting the right candidate consultancies, competitively tendering the engagement and executing the right Use of market intelligence in consultancy procurement. contract, being clear about what to buy and how to pay for it recent study conducted by advisory and managing the consultant and realfrom Orbys. izing the value needed. The results and analysis of the study The survey conducted among senior were published in two related reports, managers in 250 global organizations viz., ‘Consulting Procurement: State of also revealed that the use of market the Market’ and ‘Consulting Procureintelligence information to help inform ment Best Practice’, both published by selection and buying decisions is mainly Orbys’ parent company, Datamonitor. ad hoc in nature and utilized inconsisThe study revealed that available tently amongst organizations. data were not being used to best effect ompanies seek consulting procurement in a very inconsistent and fragmented manner. This ultimately results in value not being measured, budget overruns and poor project scoping. This was stated in a

H&P Signs Agreement With FLSmidth

SA-based Heyl & Patterson (H&P) has signed an exclusive license agreement with FLSmidth India for supply of technology and design of wagon tipplers and side arm chargers to be manufactured in India for the Indian market. As per the agreement, FLSmidth will be responsible for marketing, manufacturing and delivery of the machines with H&P engineering and involvement from design through commissioning. The agreement is expected to enable FLSmidth to continue to strengthen its global growth strategy in both the ce-

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ment and minerals industries—initially on the Indian market, and to expand in the future to the Asia-Pacific and Europe-Middle Eastern markets. With this agreement, H&P and FLSmidth will be able to supply the necessary technology for handling the latest requirements in railway wagons, which are planned by the Indian railways for their power, port and steel industries. Founded in 1887 in Pittsburgh, Heyl & Patterson provides solutions for bulk material handling and thermal processing applications.

- technology management for decision-makers

SBI To Invest In Power Project

tate Bank of India (SBI) and Macquarie SBI Infrastructure Investments will invest Rs 1,250 million in Adhunik Metaliks’ power subsidiary Adhunik Power & Natural Resources. The investment is towards part financing the equity of Adhunik Metaliks’ ongoing 540 MW coal-based independent power project at Jamshedpur, Jharkhand. The company has signed definitive agreements with Macquarie SBI and SBI for the same. The total project cost is estimated to be Rs 26,500 million and is being funded through a debt:equity mix of 3:1. The debt requirement of Rs 19,870 million has been tied up with a consortium of commercial banks led by SBI, including institutions like LIC. The investment by Macquarie and SBI is expected to meet the balance of the project’s total equity requirement of Rs 6,630 million.

Allcargo Plans Mundra CFS Expansion

llcargo Global Logistics is planning to undertake upgradation of its Mundra Container Freight Station (CFS) by doubling its export loaded volume. The CFS currently has the capacity of a single warehouse of 6,125 square metres (sq. mtrs) with 19,125 sq mtrs of paved yard. With the commissioning of the second warehouse of 6,085 sq mtrs, the export handling capacity is expected to go up to 4,000 TEUs per month. While, the total handling capacity is expected to rise to 7,700 TEUs per month. Currently, the total handling capacity including export, import and empty handling capacity stands at 4,100 TEUs per month.

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industry update Greaves Cotton Plans Engine Plant

ngineering company Greaves Cotton has decided to set up an automotive engine manufacturing plant in Aurangabad with a total investment of about Rs 100 crore. The move is in response to meet the increasing demand of automotive engines. The company has already made an initial investment of Rs 60 crore in the new unit. The plant, with a capacity to produce 80,000 engines annually, is expected to commence production

from the new plant by the end of 2011. Greaves Cotton currently enjoys more than 80 per cent market share in the single-cylinder diesel engine segment in India. The company is aiming to leverage on the potential in the diesel-engine segment for three wheelers and also eyeing the opening up of the new market in the four-wheeled small commercial vehicles (SCV), which run on diesel engines.

SAIL Commissions Tension Levelling Line

controlled elongateel Authority tion, which enables of India Limflatness of coils/ ited (SAIL) has strips by achieving commissioned a new homogenous lengths 70,000 tonnes per anof internal fibres and num tension levelling removing internal line at its steel plant strip tensions. The located in Salem. flatness achievable is The new line, 3i units. installed at a cost of The other major Rs 39.4 crore, is part The new tension levelling line is part new facilities comof the plant’s moderniof the plant’s modernisation and expansion plan. ing up at the Salem sation and expansion steel plant include plan. The levelling line electric arc furnace, ladle furnace, has been supplied by Redex, France. AOD convertor, slab caster and a new The levelling line offers a combinasendzimir mill. tion of tensions and flexions under

Orient Ceramics To Expand Capacity

rient Ceramics and Industries Limited (OCIL) has announced its plans to invest Rs 100 crore in expanding its manufacturing capacity. The company is eyeing green field project and is also looking at a joint venture agreement. The move is with an aim to meet increasing market demand and to achieve strong earnings growth supported by volume growth and focusing more on high margin product mix. The company had recently set up an International Business Division (IBD) to

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focus on exports. It presently exports to more than five countries including Dubai, Muscat, Oman, Sri Lanka, Maldives and Mauritius. OCIL makes various tiles for walls, floors and facades. The company manufactures a wide range of non-vitrified, vitrified, ultra vitrified and third fired decorative tiles for walls, floors and facades. It also imports and markets vitrified porcelain tiles, borders, motifs and other value added accessories from various countries to complement its wide range of tiles.

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ABB To Build Power Generator Factory

ower and automation technology group ABB recently inaugurated its fourth global wind power generator factory at Vadodara in Gujarat. The new factory will supply wind power generators and will produce up to 100 units per month with a rating of up to 2.5 megawatts. Ulrich Spiesshofer, Head, Discrete Automation and Motion business, ABB, said, “Our wind power generators will serve the growing need for components in the wind power industry globally. We are proud to contribute to the generation of clean power that will help countries to meet their growing needs for electricity while reducing their emissions.” India is currently the world’s fifth-largest user of wind power and investments in this form of renewable energy are expected to grow in the years ahead.

Steel Exchange Sets Up New Plant

teel Exchange India has set up an integrated steel plant at Sreerampuram village, near Kothavalasa, in Vizianagaram district, at an estimated cost of Rs 300 crore. The company also recently acquired a sick unit, GSAL, for Rs 150 crore and invested an additional Rs 150 crore to set up an integrated steel plant. A new rolling mill with a capacity of three lakh tonnes per annum of rebars and a steel melting shop with 2,50,000 TPA of billets, have also been set up on the same premises. Besides, the company is also planning to set up a 60 MW power plant using the waste heat of the kilns and the coal char generated by the sponge iron unit. The cost of the project is expected to be Rs 325 crore, of which, Rs 100 crore would be in the form of equity and the rest would comprise loans from banks.

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opinion

2D anD 3D Let Us Get toGether In the design world, users are often asked to choose between competing technologies. In the case of 2D and 3D, there is no need to take an ‘either/or’ approach—there is room for both. By following the best practices outlined in this article, users will be well on their way to creating an environment—in which both 2D and 3D together can provide value to the organization. by jayant keswani

Key

points

► 75 per cent of manufacturers continue to use 2D as part of their daily workflows. ► Creating a hybrid work environment of 2D plus 3D works best when users can seamlessly switch between the 2D and 3D tools.

ften in industry forums and customer meets a question pops up‘Should we use 2D or 3D for our design workflow’. And every time we answer- ‘Yes we should use 2D & 3D; in fact both.” As indicated, both 2D and 3D technologies have an important role to play in product design and development. The goal is not to move from 2D to 3D, or to replace 2D with 3D—rather, it is to successfully blend 2D and 3D design and engineering processes. The reason for this is simple. 2D is not going anywhere, and remains critical to manufacturing workflows. In fact, 75 per cent of manufacturers continue to use 2D as part of their daily workflows. A recent survey featured in Cadalyst.com bears these numbers out. The author found that while manufacturing, MCAD, and consumer products firms have very high rates of 3D adoption, most continue to run a combination of 2D and 3D. For example, many of these firms use 3D design tools,

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but rely on 2D for shop drawings or to collaborate with outside customers and vendors. So, what is the best way for companies to incorporate 3D into their design processes with minimal disruption to what is already working? To a large degree, success is dependent on the type of software package deployed. The following are some best practices for providing a scalable, flexible path that allows 2D and 3D to exist side by side.

2D and 3D in the same box

One of the main concerns companies have regarding 3D is that it will cause a lot of downtime and that they will no longer be able to work on current projects that are based in a 2D environment. The right solution bundles 2D and 3D design software together in a comprehensive offering. This allows users to leverage years of 2D design data and expertise, and be productive right from the getgo—and then, to incorporate 3D when it makes sense and the time is right. In this way, 2D users can continue to use the software they are comfortable with—as they learn the 3D software at their own pace. This saves countless hours of design and rework, and translates into time they can spend innovating rather than managing workflow issues.

Seamless interoperability

Creating a hybrid work environment of 2D plus 3D works best when users can seamlessly switch between the 2D and 3D tools.

- technoLogy management for decision-makers

Ideally, the 3D tool should provide direct read and write of native 2D files while maintaining full associativity to the 3D model. Any changes made to the model are reflected in the drawing, reducing the need for manual updates and ensuring that the 2D drawings are always kept in sync with the 3D design. Seamless interoperability also gives engineers the freedom, for example, to safely reuse valuable 2D files to build accurate 3D part models and then communicate insights gained from Digital Prototyping back to partners and suppliers that operate in a 2D environment.

Work in a widely accepted file format

Collaborating across an extended network of partners—as in the example above—is not nearly as easy when it requires the user to translate files back and forth from a proprietary file format. Picking a software package that utilizes the world’s most common file format automatically eliminates headaches such as having to maintain two separate sets of drawings and check them for errors after they have been converted using data-compromising translators. Instead, sharing a native file format between 2D and 3D enables engineering and manufacturing documentation to be accurately generated directly from a validated 3D digital prototype. Jayant Keswani is Head Marketing, Autodesk, India & SAARC.

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event report

Tapping Endless Opportunities Frost & Sullivan recently organised an executive MindXchange titled, ‘Performance Plastic Summit 2010—Trends and Advances in Performance Plastics’ in Mumbai. The event created a platform for end users to gain an understanding on key issues, new developments and processing requirements in the speciality plastics industry.

Dr Simon Ting Market Development Manager, Arkema Shanghai Technical Polymers Development Branch, speaks on the metal replacement trend.

oday traditional materials such as metal and thermosets are being replaced by performance plastics because of their lighter weight, design flexibility, ease of processing and the overall reduced lifetime cost. According to Frost & Sullivan, the trend of replacing metal or other traditional materials is expected to drive the demand growth of performance plastics by 25 per cent by 2015. “The Indian market for performance plastics is still a very small percentage of the global market,” said Mamta Wadhwa, Sr Director, Chemicals, Materials & Food Practice, Frost & Sullivan, South Asia, Middle East and North Africa. Wadhwa added that lack of product awareness, availability issues, high price, smaller base of end-user industries such as healthcare, are some of the

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factors that have restricted the growth of this market. The event covered various key topics like ‘New innovations in speciality plastic—an R&D perspective’; ‘Ultrasim techniques’ and ‘Need and challenges of using performance plastics in the electronics segment’, among others. Dr Simon Ting, Market Development Manager, Arkema Shanghai Technical Polymers Development Branch, spoke on the topic of ‘Metal replacement trend: A perspective’. Highlighting the benefits of plastics, Dr Ting said that high performance plastics has properties such as chemical and corrosion resistance, abrasion properties and moreover it can be recycled easily. He pointed out that though metal has properties such as high melting point, stiffness and safety factor, it has disadvantages too like high density, high processing temperature and poor chemical resistance.

- technoLogy management for decision-makers

Vikas Bawa, Deputy General Manager, COE, Trim Engineering, Mahindra & Mahindra, Automotive Division, spoke on the topic, titled, ‘Auto OEM perspective on use of plastics for improved vehicle performance’. He focused on the journey of plastics in automobile industry, origin of plastics and the current plastic usage. “Today plastics represent an impressive 45 per cent of material volume and 8 per cent of material weight in today’s passenger vehicles,” Bawa said. Dr Milind V Mhalgi, Senior Manager, Materials & Product Valuation, Taco Group, spoke on the topic of ‘Necessity & advantages of using performance plastics in the automotive industry’. He noted that for every 10 per cent reduction in weight of the total vehicle, fuel economy improves by 5-7 per cent and for every kilogram of vehicle weight reduction, there is a potential to reduce carbon dioxide emissions by 20 kilograms over the vehicle’s operating life. S Krithikumar, Manager Sales, Engineering Plastics, BASF India, spoke on the topic of ‘Intelligent solution for electrical & electronic industries’. The other eminent speakers during the event included Dominic Britto, Principal Consultant, Materials Practice, Frost & Sullivan; Dr Sanjay Charati, Director—Technical, Solvay Specialties India; M S Saravanan, Market Development Manager, BASF; Prashant B Vairagi, Assistant General Manager, Plastics Technology Switchgear Design & Development Centre, Electrical & Electronics Business Group, Larsen & Toubro and D Madhusudhana Rao, Assistant Manager—New Product Development, Amara Raja Electronics.

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event report

Solving Constraints With Value Chain Planning Oracle in association with Industry 2.0 recently concluded its first series of multi-city events, titled ‘Value Chain Planning’. In this phase, the events were conducted in New Delhi, Mumbai and Chennai.

s with the changing business scenario, better supply chain planning and management has turned out to be a competitive differentiator and margin driver, today the key to business success lies in how does a company manage its supply chain. Again, the key to managing a supply chain is found in how it executes critical activities like demand management, Sales & Operations Planning (S&OP), and network optimization. The dynamics of manufacturing and distribution has changed radically in the past few years thanks to changing regulatory frameworks, liberalization, globalization and ubiquitous implementation of Web-based technologies and IT solutions. Local has become global. Push has become pull. Time has become Real Time. Monolithic enterprises have given way to extended supply chains, and the focus of senior manufacturing and supply chain executives has expanded beyond their own companies to include suppliers, partners and, above all customers. On the other end, customers— whether individuals or organizations—now expect round-theclock access to track and place orders, products and services to be available on demand, and even the ability to customize those products and services to specific needs or desires. Manufacturers are becoming more global in sourcing, delivery and produc-

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tion. Supply chains are competing against other supply chains, and only intense coordination can provide long-term competitive advantages. In fact, the real opportunities for many companies are in the linkages to suppliers and customers—and adding value, while squeezing out costs. Value Chain Planning solutions enable companies to become more information-driven with bestin-class supply chain planning applications built around a core of optimization, sales and operations planning, and performance management. It allows you to move beyond basic MRP to profitably balance supply and demand, optimize operations to minimize costs, and manage supply chain risk for resiliency and maximum performance in today’s rapidly changing global business conditions. It leverages global demand management to sense local demand volatility, and use these insights to improve business forecasts and build a consensus plan that aligns sales, marketing, finance and operations. With unique capabilities to shape demand, simulate alternative business scenarios and manage risk, Value Chain Planning provides the core of Integrated Business Planning to ensure operations are aligned to meet corporate financial goals. In New Delhi, Virlav Bhatia, Vice President, Supply Chain Management, Reliance Retail, talked at length on the emerging issues in the field. Monesh Dange,

industry 2.0

Partner, KPMG too put his views to field the questions from the audience. In Mumbai, Sanjeeva Prasad, Head of Supply Chain Consulting and Expertise Services, Dow Chemicals, delivered his speech on the present trends and needs in this field. Kanak Ghosh, Director, 9dot9 and Head of Logistics 2.0 magazine, too conveyed his perspective on contemporary trends in the field. In Chennai event, V Narasimhan, Executive Director, Brakes India, presented a critical analysis of the new constraints in the supply chain management. In all the events, Danny Smith, Global Solution Architect for Value Chain Planning with Oracle Corporation, who has been focused on using a combination of mathematics and technology to solve real-world business problems for over 20 years, explained the audience how to improve key value chain processes including Sales & Operations Planning (S&OP), Network Optimisation and Risk Management.

Danny Smith Global Solution Architect Value Chain Planning Oracle Corporation

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event report

Outsourcing Need To Be Done To Add Value To The Logistics Process Although the Indian logistics outsource market is expanding at the highest rate in Asia, the focus is still mostly on just cost reduction. A radical shift in paradigm is necessary at this juncture, the primary target behind outsourcing has to be adding value to the process, and of course with that added value cost optimization is possible.

s a part of their multi-city series of events entitled ‘Captains of Logistics’, which kicked off from Kolkata in July for evaluating the merits of logistics outsourcing, Industry 2.0 and Drive India Enterprise Solutions Limited (DIESL), a Tata Group company, recently organized a round table event in Chennai—the city with a long tradition of manufacturing and trade—and presently holding a huge importance as an economic centre and distribution hub for the markets in South India. Today, Chennai has also emerged as an important gateway for export-import trade and a major hub for automotive and electronics manufacture. DIESL runs around 175 warehouses in the country, which is the largest in terms of number of warehouses run by any single logistics service provider in India. The company has around 4.3 million square feet of warehouse space, and in that respect it is the second largest LSP in India. In South India, it has a capacity of around 1.4 million square feet, and more than half a million of it is in Tamilnadu, mostly centering around Chennai. The objective for the event was to create a platform for the senior executives and managers

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Ajay Chopra, CEO of DIESL, (Middle) stresses on the role of the organized LSPs in enhancing the productivity of a manufacturing organization. who are responsible for organizing and managing supply chain activities and logistics, so that they could deliberate and discuss the emerging trends and issues of logistics. Apart from the existing hassles of the logistics and supply chain industry, (say) related to the various regulatory barriers, efficient manpower development, reduction of capital and operating expenditures etc., today with the fast geographic and volume-wise expansion of the manufacturing companies, new constraints are coming up for the logistics managers, particularly to maintain the customer service levels. In the words of Ajay Chopra, CEO, DIESL, “Although huge amount of good practices and knowledge is hovering around this industry, there is very little scope for all of us to sit together and share that knowledge. Thus, we thought of taking the initiative, to gather and channelize that knowledge.” The Chennai event focused on the advantages of outsourcing the logistics activities to third parties offering integrated transport management and warehousing

- technoLogy management for decision-makers

solutions, which is the growing trend around the globe these days. It focused on the ways to reduce logistics cost, minimize assets, better order fulfillment, enhance level of customer service, shorten order cycles and mitigate risk. In the event, Ajay explained how experienced logistics service providers can support a company to improve productivity by bringing in new technology and ensuring new height of customer service. In his presentation, he focused on the growing trends of accepting 3PL services worldwide, wherein it was found that the growth rate is highest in the Asian market, as probably the European and American markets have already witnessed the maximum growth. One very interesting co-relation in Ajay’s presentation drew attention of the audience. He pointed out, “Everywhere in the world wherever the logistics cost has come down, the outsource ratios have gone up. In the US where logistics costs have come down to 8 to 9 per cent, the level of outsource to the organized players is as high as over 70 per cent.”

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event report

Changing Management Mindset The global community of Growth, Innovation and Leadership (GIL 2010) held in Bangalore recently, focused on the need for transformation in the management mindset, to accelerate growth of the automation software market. Innovation and Leadership) 2010 in Bangalore.

Key growth driver

Niju V Deputy Director, Automation & Electronics, Frost & Sullivan, is speaking at F&S’s GIL 2010 in Bangalore.

he recent downturn in the global economy has heightened the need for gaining a competitive edge in the manufacturing and process industries. The degree of automation is expected to play a key role in driving India’s position in the global manufacturing industry. Though India has gained substantially from enterprise solutions in various business processes, IT and software implementation in the manufacturing sector, has been relatively low in comparison with their counterparts in the developed economies. Current adoption of automation systems have created disparate silos resulting in an inflexible supply chain and a lack of visibility. Lack of awareness of global automation technologies and trends in manufacturing IT has also contributed to the low adoption of next generation automation solutions. This was discussed at the recently held Frost & Sullivan’s GIL (The global community of Growth,

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The manufacturing sector has been a key growth driver of the Indian economy during the recent years. The contribution of manufacturing to the Indian GDP has been around 15 per cent in the past decade and is expected to touch around 25 per cent by 2020, when the country’s GDP is expected to reach $3 trillion from the present $1.2 trillion. While Indian companies seek opportunities overseas and global manufacturers enter the Indian marketplace, manufacturers will need to sharpen their focus on delivering more value to their customers. Manufacturers are constantly seeking productivity enhancement tools to maintain sustainable competitive advantages. Supply chains need to be intelligent and interconnected for responding quickly to changing market dynamics. Seamless integration of automation systems such as advanced process control, SCADA, DCS, MES and PLM with ERP and other business applications will enable greater visibility to the management and provide a competitive edge to the manufacturers. Adoption of wireless technologies and PC-based automation is also increasing among Indian manufacturers. This infusion of automation technology and solutions throughout the value chain is expected to enhance manufacturing efficiency and in turn drive the growth for PAM, MES, PLM and other automation applications.

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Large investments

Large investments in both the process and discrete manufacturing industries will provide strong growth opportunities for the automation solutions and software market in India. Adoption of next generation automation solutions such as MES, Wireless, PLM and PC-based automation in India have been concentrated in highend manufacturing sectors such as oil and gas, automotive and auto ancillary sectors. However, pharmaceuticals, food and beverages and consumer packaged goods industries are expected to contribute to the next generation solutions market. Due to greater adoption of automation products, the growth rate for products such as MES and PLM is expected to be in excess of 15 per cent CAGR over the next five years. According to Frost & Sullivan, transformation in the management mindset regarding the benefits of automation among Indian manufacturers and increasing global manufacturing facilities is a necessity today to further drive the growth of the automation and related software market. Frost & Sullivan, along with the members and partners and the Strategic Partnership Consortium—a comprehensive alliance of visionaries, innovators and leaders, are engaged in sharing, inspiring and creating a continuous flow of new ideas and fresh perspectives, which would leverage innovation as a resource to help shape a better future. Member companies and organizations include IFS, Liveperson, BrighTalk, Lenos Software, Schneider Electric, SCIP (Society of Competitive Intelligence Professionals), Underwriters Laboratories, Intel, Bulldog Solutions, Eloqua and Global Spec.

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manufacturing technology

“R&D measure is way below global industry level” The process plant equipment industry is growing due to the increasing number of power plants coming up in India. Also, the competitive prices offered by Indian companies are helping the industry make a mark. However, it is the research and development efforts, which need more attention. Robinson Fernandez, Sr. Vice President (Application), GEI Industrial Systems, in an interview with P. K. Chatterjee, discusses the role of increased research and development measures for higher growth of this industry. Excerpts...

Robinson Fernandez Sr. Vice President (Application) GEI Industrial Systems What kind of growth is being witnessed in the Indian plant equipment manufacturing industry in these days? There is a phenomenal growth being witnessed in the power plant equipment manufacturing industry due to large number of projects being set up for power generation. This segment is growing at the rate of more than 35 per cent per annum presently. Other equipment for oil and gas industry is growing at the rate of 10 per cent per annum. How is the industry gearing up to be globally competitive? Global competition for the process plant equipment is mainly from China, Korea and East European countries. Indian companies offering technological products in the process equipment industry are able to offer globally competitive

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prices for requirements generated from the East Asian and Middle East market. What is your comment on the demand scenario both in domestic market and abroad? The demand for equipment for oil, gas and power equipment abroad is increasing and there is a good growth in demand for power plant equipment in India as well. How much emphasis is being given on research and development (R&D) in this field? The present level of R&D effort in India for process equipment is way below the industry standard prevailing globally. Some of the equipment are based on design provided by the process licensor or engineering contractor, hence there is no much scope for developing new design through R&D.

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For other equipment—much more needs to be done on the R&D front to make the equipment globally competitive in terms of energy saving, capital cost, compact sizing and running cost. Globally educational institutes play a vital role and contribute to the growth of the small and medium industries. China or for that matter even in advanced countries—plenty of research is being done by the institutes with Government industry sponsorship. These helps contribute to develop innovative products, sometimes even replacing existing products, with similar design at competitive prices. In India, there is an urgent need for educational institutes to interact with the industry and initiate the process of R&D. In our country students do not pursue doctorate degrees in a specialized field and this is a major impediment in initiating the process of R&D measures. This also calls for immediate attention of both the Government and the industry to encourage main stream students to go for doctorate and absorb them for R&D activities.

- technology management for decision-makers | september 2010 | Vol. ii

manufacturing technoLogy

â&#x20AC;&#x153;Indian market has increasingly become global and vastâ&#x20AC;? have been recognized and widely adopted across the globe. NI has been in India for over 17 years now. In fact, India has been one of the fastest adopters of the next generation technology. From MNCs like Intel, GE to Indian organizations like HAL, BEL to SMEsâ&#x20AC;&#x201D;we have seen a very wide adoption of Virtual Instrumentation technology in India. Over 400 Indian engineering institutions have included Virtual Instrumentation as a part of their curriculum. We are glad to see the local pertinence and impact that NI has had in India.

Engineers and scientists can rapidly and cost-effectively interface with measurement and control hardware, analyze data, share results, and distribute systems through intuitive graphical programming. National Instruments India, alongside continuous innovations in strengthening the power of the LabVIEW platform, has also been instrumental in developing many Indian third party alliances, solution partners, industry-academic collaborations, support structure and a strong Indian LabVIEW community. Jayaram Pillai, Managing Director of the company for India, Russia, Arabia, in an exclusive interview with P. K. Chatterjee, divulges his observations on the technology absorption trend among the Indian manufacturers. Excerpts... 16

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What is the role of National Instruments (NI) in spreading updated technologies across India? We are committed to constant innovation and continuous improvement. Sixteen per cent investment of annual revenue in research and development (R&D) is a testament to this commitment. As a result, we have always been ahead of the technology curve and we will continue to introduce the next-generation test, control and design solutions to engineers and scientists. We leverage the Commercial Off The Shelf Technology (COTS) and combine it with a powerful and flexible graphical programming environment like LabVIEW to create custom defined solutions to our customers. Our investments in multi-core processing, FPGA technology, wireless standards and evolution of LabVIEW as a unified platform across the design, prototype and deployment life cycle

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What is the latest trend in technology absorption amongst the Indian manufacturers? The Indian market has increasingly become global and vast. The export market has bloomed due to the demand for global products and services. Globalization has made the Indian consumer very demanding as there is an increasing option of goods and services available for everything. At this juncture, the Indian manufacturers envision a great opportunity and also a challenge. For the Indian companies to be competitive, they need to manufacture high quality products at an Indian price. Thus, the Indian manufacturers are investing in the areas of test and automation by which they can reduce cost of the product, lower the time-to-market, ensure leaner manufacturing practices and conform to the quality standards. There is also a trend of increasing investments in R&D and IT frameworks for integrating manufacturing and CRM.

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How is NI increasing the competitive advantage for manufacturers, by offering solutions for green technologies? Green engineering is the process of using hardware and software technologies to reduce our impact on the environment. Through realworld measurement data, we can gain a better understanding of how we are consuming resources and receive insight into ways of improving efficiency, reducing waste and moving to cleaner alternatives. NI enables green engineering by providing measurement, automation and design tools that empower engineers and scientists to first quantify and understand real-world data and then correct problems for more environmentally friendly designs. This approach involves designing, developing and improving products, technologies and processes to achieve environmental and economic benefits. Engineers and scientists around the world are using the NI graphical system design platform to make a positive impact on the global ecosystem. From the development of more energy-efficient systems to enhanced environmental monitoring and cleaner systems, many of today’s most pressing issues are being addressed with green engineering applications powered by NI products. Do you offer complete solutions for product design, or is your support an additive to the design process? Competing in today’s global economy requires companies to rapidly enter the market with innovative products that offer increased functionality and operate flawlessly. The NI graphical system design approach, for test, control and embedded design, meets this need by providing a unified platform for designing, prototyping and deploying applications. The NI platform empowers engineers to integrate real-world signals sooner

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for earlier error detection, reuse code for maximum efficiency, benefit immediately from advances in computing technology and optimize system performance in a way that outpaces traditional design methodologies. The Graphical System Design approach enables the same platform to be extended across the entire product development life cycle—from design to deployment. This approach reduces the time-tomarket, optimizes system scalability and provides increased performance at a much lower cost. How do you deliver support to customers across the country? At NI India, we consider ourselves as trusted advisors who offer the best solutions to our clients to meet their individual system needs. The solutions extend throughout the application life cycle—from planning and development through deployment and ongoing maintenance. We bring years of experience, commitment and support to every customer interaction across industries in India. NI India professional solutions team is a group of highly qualified engineers who facilitate end-toend solutions for the customer’s requirement. Our qualified technical consultants provide feasibility analysis and end-to-end consulting to suit the requirement. Our technical application engineering team delivers proof of concepts, code reviews, etc., during the application development, and also provides post-sales support. The system engineering team recommends system architectures and builds technical proposals for any requirement. We have certified NI alliance partners across India who provide turnkey solutions for customers’ applications. We also offer a wide range of local services like training and certification, calibration, start up assistance, factory installations and repair services.

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manufacturing technoLogy What kind of investment interest in technology are you finding among SMEs to enable them to be globally competitive? Although SMEs in India have always formed the backbone of the Indian economy and have been continuously growing in revenue and quantity, they have been traditional in their business approach. However, the SME sector is undergoing a total makeover. Unlike yesteryears, the Indian SMEs are now realizing the importance of investment in R&D and also the conformation to quality and international

Indian manufacturers are investing in the areas of test and automation to reduce cost of the products, lower the timeto-market and ensure leaner manufacturing practices.” standards to gain global competitiveness. Globalization of the economy, access to technology practices and huge engineering pool in India are some of the key factors catalyzing the transformation. The SMEs are more open to modernization of their practices and systems at a price that justifies the return on investment. However, access to technology at an affordable price still remains one of the genuine challenges for the SMEs in India. The organizations need to realize the uniqueness of this sector and address their concerns. What is your contribution to the growth and modernization of the Indian SMEs? Access to technology and affordability are key concerns among the Indian SMEs. They don’t need access to ‘strip down version of good technology’ at an affordable

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price. They need access to ‘good technology’ at an affordable price. The SME sector in India is very diverse, and it is almost impossible to evolve a single program that suits all. As a technology leader, we realize the impact that our technology can have in their growth. The ‘NI SME Benefit Program’ a unique approach to help the SMEs in India to achieve economic prosperity through access to technology. This is a flexible pricing program, which gives the SMEs access to LabVIEW software and also builds competency with our world class training and support programs. Over 126 SMEs in India have already successfully availed this program. What is new from NI for process automation in plants? For several decades, the main tasks for the control of industrial systems were reliable, discrete logic and straightforward analog I/O. In recent years, the complexity of devices and systems have significantly increased along with the requirements for performance measurements, signal processing, data logging and advanced control. As control applications become sophisticated, we need higher-speed and higher-quality measurements. NI leverages the highly reliable and user program-

mable FPGA technology to create high performance real time control systems (NI CompactRIO PACs). Our continuous innovations on the LabVIEW platform enable us to implement custom control using graphical programming. NI PAC (Programmable Automation Controller) platforms optimize existing plants with precision measurement and advanced control thus increasing the throughput, system efficiency and yield. How can your solutions assist in machine condition monitoring to ensure near-zero down times? NI’s hardware and software platforms are ideally suited for predictive condition monitoring. The high end processor technologies enable real time monitoring and historical trending. We are also able to perform online analysis with algorithms developed in any programming environment. Open modular hardware platforms allow for future improvements to be easily implemented. This significantly helps decrease unscheduled outages and optimize machine performance while reducing maintenance and repair costs. NI’s condition monitoring systems have been deployed on a variety of turbines, compressors, generators and other industrial machines across India.

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materials & processes

Maximizing Machine Shop Productivity The small and medium businesses can survive in the intense competitive market by implementing three key factors, viz., proactive maintenance, streamlined inventory management and high-performance lubricants. by glen sharkowicz

The most essential and cost-effective component of a successful proactive maintenance strategy is the implementation of a comprehensive oil analysis method. Oil analysis is a series of tests that help determine the condition of internal hardware and in-service lubricants. With this information, you can extend the useful lives of both, identify early warning signs such as contamination and wear and minimize unscheduled maintenance.

Inventory management

Oil analysis is a series of tests that help determine the condition of internal hardware and in-service lubricants.

n today’s increasingly competitive environment, maximizing productivity is a must, especially for small and medium-sized machine shops. Typically, these businesses cannot match the overall production capabilities—in terms of volume—of their larger rivals. Furthermore, large competitors often have more equipment, more people and more resources as compared to small or medium sized businesses. So, how can small and medium-sized businesses gain a competitive edge?

Proactive maintenance strategy

One of the most valuable things any company can do is to incorporate a proactive maintenance approach vs. a reactive maintenance platform. For many small companies specializing in machine shop applications, this maintenance mindset is essential.

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Another great way for small and medium-sized machine shop businesses to maximize productivity is to maintain an efficient inventory management strategy. When addressing inventory management, there are several factors you should consider. Perhaps the most important is recognizing that inventory costs will include the initial purchase price of materials plus costs associated with handling and storage. Other items to consider when developing an inventory management strategy include estimating the replenishment quantity and determining appropriate times to submit reorders. A key component in determining proper reorder quantity and timing is for the business owner or maintenance manager to accurately gauge how much available space can be dedicated to storage. Typically, most machine shops owners do not want to utilize valuable space to store excess inventory. Thus, a good best practice to follow is to work closely with your suppliers to develop an effective cycle fulfillment process, through

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which, deliveries are received just as previous order supplies are about to be drained. One common way for machine shop owners to efficiently utilize inventory space is to review the list of lubricant it is using. Lubricants take up a significant amount of storage area and, often times, the number of products can be consolidated to a lower number of high-performance lubricants.

Lubricant

Whether your company specializes in producing simple bolts, complex gear sets or high precision valves, keeping your machinery running efficiently is the key to your profitability. After all, in a machine tool, the active physical interrelationship taking place in the equipment requires that your lubricants work together effectively—your slideway oil must work seamlessly with your choice of cutting fluids. In a machine tool, mixing oil with the coolant is unavoidable. Some way oils may not separate readily from the coolants and result in excessive ‘tramp oil.’ Excessive tramp oil will compromise the effectiveness of the metal working fluid by shortening the effective life and altering cutting performance. Excessive tramp oil can also lead to bacterial growth in water soluble coolants resulting in foul odour, short coolant life and potential employee health and safety concerns. To avoid these issues and help ensure that your equipment runs smoothly over the long haul, choose a high performance lubricant that is specifically designed to deliver excellent frictional properties and coolant compatibility, across a range of way and slide applications. Glen Sharkowicz is the Global Industrial Products Offer Advisor at Mobil Industrial Lubricants.

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information technology

Enhancing Supply chain EfficiEncy By RFID TeChnology Improving supply chain efficiency and escalating the speed at which goods move from the manufacturer to the consumer is more than a business mandate today; a subject of business survival.

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adio Frequency Identification (RFID) is a true next-generation technology. Though it is relatively young; around 400-500 companies across the world are involved in its deployment and are pioneering this innovative phase of development. The three important elements of RFID systems are tags, readers and the software, which process the data. Tags are generally attached to products or goods, as a component of an adhesive barcode label or can be attached in more durable enclosures or incorporated in ID cards or wristbands. The RFID readers are generally standalone units placed in strategic locations, such that the goods or conveyor lines or anything carrying the RFID tag is routed through these locations. The readers are either integrated with a computer to which the data is transmitted, or connected to a barcode printer.

A radio signal is sent by the reader that is received by all tags present within the range that are tuned to the RF field frequency. The signal from the reader is received by the tags through their antennas and they respond by transmitting back the data stored in them. RFID tags are capable of holding multiple types of data; these include activity history (for example, when the tag passed

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a specific location, the previous scanning date, etc.), serial number, temperature, count, and other inputs made available by sensors. The reader receives the signal through its antenna and transfers the data to the computer system.

Advantages over barcodes

Though barcodes are capable of supporting automated data cap-

- technology management for decision-makers | september 2010 | Vol. ii

information technology ture, RFID technology does offer significant advantages over them. Some of the advantages offered by RFID technology are as follows: • Through RFID technology it is possible to have item-level visibility as the RFID tags can hold more data, whereas barcodes can only facilitate object level identification. • Expanded reading range is a distinct feature of RFID, which supports quicker reading and faster processing. It also facilitates rapid product movement (as a result, these can be installed on fast moving conveyors). • Continuous data reading and writing and other activities like

RfiD tags can be very effective in

enhancing operational

effectiveness in areas such as dispatches and improving product security throughout the supply chain. changing, adding, and deleting information on tags are possible with RFID technology. • Unlike barcodes, RFID need not be in direct line-of-sight of the readers resulting in reduced manual handling in the reading process. • Additionally, readability of RFID tags is much better in adverse conditions such as exposure to dirt and outdoors. Despite the above benefits, RFID is not likely to force barcodes into extinction in the near future. Barcodes are very commonly used in the retail industry, warehousing and logistics, and in the manufacturing domain. Barcodes are likely to continue

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to be an integral part of the data capturing process, especially as RFID is still a big investment for small to midsize companies.

RFID in manufacturing sector Manufacturing processes can find solutions for many day-to-day problems through RFID implementation: • RFID tags can be used to track work in process (WIP) throughout the production process and critical data such as instructions, parameters, procedures, and monitoring information can be fed into the tags. This helps in reducing the number of errors and ensures correct components being made available in an assembly line. • RFID tags can also be used to track workflow, waiting and processing times of every individual product. It increases visibility across the manufacturing stages through easy identification of time and stage of product. • RFID can also be tagged for physical tracking to enhance security during material movement within the plant. It also allows users to measure utilization of assets. The above advantages enable exertion of greater control on the production process and reduce production disruptions and rescheduling.

Quality control and regulation

Companies can track the quality of products using RFID technology within their manufacturing facilities and beyond as goods move along the supply chain. RFID can be used for real-time monitoring of quality parameters, thus minimizing the probability of delivery of poor quality products as well as drastically cutting down on the time spent in inspection and rework. Things like atmospheric conditions, tem-

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perature, and molecular activity such as bacteria levels can be monitored at every stage of the supply chain. For example, an RFID temperature logger can operate in temperatures from -40°C to 85°C and it has a battery life of 6 years. The temperature measurements can be very accurate and within a range of ± 0.25°C and these tags can store more than 12,000 readings. Complete product history from source to destination can be captured even when shipments are in transportation for numerous weeks. These features of RFID make modern supply chains capable of tracking the product quality as products are shipped across different continents, during which they are exposed to different environmental stress.

Operations and security

RFID tags can be very effective in enhancing operational effectiveness in areas such as dispatches and improving product security throughout the supply chain. Listed below are some of the ways in which RFID can help companies to enhance their operations and security: • Movement of trucks coming for loading and unloading of materials can be tracked through RFID. RFID tags can be placed in the trucks, and readers can be located at key positions such as entry and exit gates through which incoming and outgoing information can be tracked in real time. This would enable improvements in truck turnover time; incoming truck drivers can be guided to the appropriate unloading bay, thus facilitating faster unloading and better utilization of assets. • Product shrinkage is one of the major problems that most global supply chains face. Billions of money are lost due to product shrinkage across the world each

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information technology

Major companies in the retail, manufacturing, and logistics sectors are either in the process or have plans of implementing RFID.

year. Most of these losses are at intermediate stages of supply chain where they are out of manufacturers’ control. RFID technology can be used to get real-time input of the product quantity throughout the supply chain network. Based on this information, the organization can take antitheft measures to prevent future occurrences. RFID can also be a very effective anti-theft solution for retail outlets, supermarkets, and distribution centres.

Inventory management

Inventory management can be improved in many ways through implementation of RFID technology. RFID can aid in tracking the exact level of inventory, parameters like inventory life, age, First In First Out (FIFO), etc. RFID offers the following advantages for better inventory management: • Physical accounting of inventory is a time consuming process and often forces stores to close for a few hours, item-level tracking can enable retail stores and supermarkets to account physical inventories in a fraction of the time that it takes for physical accounting as a result of which retailers can take inventory counts more frequently. Item-level tracking can be used to harness

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a whole range of opportunities—it can provide very accurate data of sales and prevent thefts; also, smart shelves with in-built RFID scanners can automatically monitor increase and decrease in stock levels. It also enables tracking of critical product details like expiry date and type of inventory, which can improve inventory management systems. • RFID-enabled tracking systems can be synchronized to various inventory and warehouse warehouse management systems, which can drastically improve the visibility of inventory and keep track of inventory at all locations of large warehouses, thus reducing wastage and excess inventory. • RFID tracking can also be used for a wide range of activities such as monitoring product parameters like temperature of storage, humidity in the storage area, age of stock, etc.

Logistics and distribution

Logistics is one area where RFID technology can impact systems and process in more ways than in any other sector: • Shipping and logistics organizations can track important assets precisely using RFID. Additionally, RFID could help in tracking a container’s history through all the information that has been stored in the tag. • Shipping companies can use RFID to automate and monitor the loading process and optimize utilization of docks and trucks. The shipment identification number can be generated, which can then be stored and tracked through RFID for customer tracking. • Container-level RFID tracking enables both shipper and customers to maintain visibility throughout the transportation process and can generate alerts of delayed shipments. This kind of detailed shipment tracking data facilitates measurement of true

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transit lead times; the same could be reduced on further analysis of this information. • RFID can automate outbound shipments and all the shipping data can be verified through RFID readers before the shipment is moved. This can considerably decrease errors in the process of picking: the inventory data gets updated as each package is read. Automation through RFID can reduce labour costs throughout the supply chain. Labour cost is one of the major elements for a typical distribution centre, accounting for almost 40 to 60 per cent of the total distribution costs. According to some researchers, there is a portential of reducing labour cost up to 30 per cent in the order picking process and more than 80 per cent in inspection costs for shipping processes.

Conclusion

RFID is moving through a rapid adoption phase and gaining momentum. Some of the major factors that are expected to force faster RFID adoption by companies are likely to be: • Major companies in the retail, manufacturing, and logistics sectors are either in the process or have plans of implementing RFID, which demands their business partners and associated organizations also develop and deploy RFID applications and solutions. • The emergence of new powerful global standards for RFID offers significant performance benefits, easy scalability, and a clear deployment roadmap. RFID implementation has become easier. • Unlike in the past, the benefits and return-on-investment on RFID implementation has been proven by many organizations through numerous pilot projects and early deployments. Source: Manufacturing and Process Consulting Practice, Frost & Sullivan

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management & strategy

“We have the right talent and abilities to pioneer…” The World Economic Forum (WEF) has selected 31 companies from 13 countries as Technology Pioneers 2011, who will be presented with official recognition in Tianjin, People’s Republic of China, between 13 to 15th September 2010. A committee comprising 68 leading academics, journalists, technologists and venture capitalists from all parts of the world evaluated the visionary companies in the fields of clean tech, health and information technologies/ new media. Growing concern over the environment reflected in all-time high of companies selected in the clean tech category. Chennai-based Indian company Vortex Engineering is one of the recipients of this prestigious recognition. In an exclusive interview, Vijay Babu, CEO, Vortex Engineering, talks to P. K. Chatterjee, on their innovations in reaching Automated Teller Machines to rural users. Excerpts… 26

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How are you feeling after WEF announced Vortex Engineering as one of the 31 Technology Pioneers of 2011? We are feeling very elated at this recognition for Indian innovation at a global level. As the company which pioneered the concept of a rural ATM and also its application in social payments, we believe this award at a global stage further extends its applicability across countries. Could you explain the innovation (s) in brief that has (have) fetched Vortex this international recognition? Vortex Gramateller ATMs. These are indigenously designed low cost

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low power biometric ATMs (Automated Teller Machines), specifically designed for banking & financial requirements of Indian rural and semi urban market. The unique patented technology used in our ATMs has been developed to help banks reach out to rural areas and financial inclusion of unbanked population. These ATMs consume very little power (1/10th of conventional ATMs), have the total cost of ownership at 25 per cent of conventional machines, and have features very specific to the rural or semi urban segments of developing countries. Usage of Gramateller ATMs could reduce CO2 emissions by about

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What kind of difference in needs for solutions do you find between rural or semi-urban areas and the cities? Nowadays, most banks are on the path to move to Core Banking System. Even those banks, which still run on TBA or are waiting for the migration to CBS, can extend their banking services through ATMs. The ATMs will continue to work without any changes in hardware even after the migration has taken place, thus ensuring that the investments made by the banks are safe. In terms of needs in rural and semi urban areas, they are very different from those in the cities – in cities, air-conditioning is taken for granted. In rural, where power itself is a major concern, air conditioning is not as critical as getting the machines to work for as much time as possible. Besides, getting fresh crisp notes or the ‘ATM grade’ notes is not difficult in cities, whereas, in rural, these are not available. So, a machine which can reliably dispense teller grade notes, and which comes with built in power back up and works on alternative power sources—like solar power—becomes key to success. What type of solutions are you offering to reach seamless banking facility to semi-urban and rural India? In addition to ATMs, the smaller co-operative banks and the regional rural banks need other items like an ATM switch software to make the ATMs live. Conventional ATM switches are usually priced beyond the reach for small scale deployments. Vortex has partnered

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with a few ATM switch vendors— to offer a cost effective scalable solution so that even rolling out a few ATMs becomes commercially viable. These partnerships also cover other related software like ATM Card Management system and also the supply of ATM cards. What is Vortex’s contribution in sorting out the challenges in wage disbursal under National Rural Employment Guarantee Act (NREGA)? The Gramateller ATMs offer a very cost effective method for last mile delivery of the NREGA wages. These ATMs use biometric authentication instead of PIN, so that only the intended recipient is allowed to withdraw the amount. All transactions are electronic with almost no human intervention. Since crediting of the wages into the accounts does not take much time, the delays in disbursal is greatly reduced. Additionally, because of greater availability of the ATMs beyond banking/office hours, the beneficiaries do not end up losing a day’s work in collecting the wages. What are the variant factors that drove the design of these ATMs? The industrial design of the ATM was done keeping in mind the fact that the users in rural areas do not feel intimidated by a sophisticated look. These machines comply with all international security standards. The use of fingerprints for identification as an option in addition to PIN ensures that lesser literate users are also comfortable in using them. What are you exactly doing to reduce the energy consumption in ATM machines as well as ATM centres? Already we have done a lot of R&D (Research & Development) efforts on the power consumption of these ATMs. The machines consume very little power (less than 100 W—as

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18,500 kg/year, making it one of the most eco-friendly ATMs. Vortex has ATM solutions for both types of banks that use Core Banking Software (CBS) or Total Branch Automation (TBA) software.

We hope for and look forward to a future where the benefits of technology for society become increasingly accessible to all geographies and larger chunks of the world population.” ANdRé SCHNEIdER COO & MD Of WEf

low as two light bulbs), and also help further save power by not requiring air conditioning. These machines can also be viably powered by solar energy, thus providing greater availability in areas having severe power shortages. How are you managing to lower the product cost to be competitive globally? The core parts of the machines (mainly the Cash Dispensing Modules) are designed in house, giving us a lot of edge as one of the few ATM manufacturers in the entire world making the ATM end to end. What is your advice to Indian manufacturers in general? That something has not yet been done so far in the West is no reason behind not to attempt the same in India. In India, we have the right talent and abilities to pioneer, and the Indian requirements themselves offer a lot of market potential.

- technoLogy management for decision-makers | september 2010 | VoL. ii

management & strategy

CFOs Five ways

can make cost cuts stick

Successes in cost cutting erode with time. Here’s how to make them last. by ankur agrawal, olivia nottebohm & andy west

ptimism is on the rise that a solid economic recovery is taking hold around the world, but the cost cutting so prevalent during the recent recession looks to remain a strategic priority for some time. Indeed, the number of executives reporting steps to reduce operating costs in the next 12 months increased significantly between February and April, even as confidence in the economy grew. Yet any successes companies have at cutting costs during the downturn will erode with time. Many executives expect

september 2010 | VoL. ii | industry 2.0

some proportion of the costs cut during the recent recession to return within 12 to 18 months— and prior research found that only 10 per cent of cost reduction programs show sustained results three years later. On either schedule, any programs initiated in the early months of the downturn are already beginning to fail—just as savings would be most useful to finance growth. Sales, general, and administrative (SG&A) costs prove to be particularly intransigent. While manufacturing efficiencies have enabled an aver-

- technoLogy management for decision-makers

age S&P 500 company to reduce the cost of goods sold (COGS) by about 250 basis points over the past decade, SG&A costs have remained at about the same level. Why is it so difficult to make cost cuts stick? In most cases, it’s because reduction programs don’t address the true drivers of costs or are simply too difficult to maintain over time. Sometimes, managers lack deep enough insight into their own operations to set useful cost reduction targets. In the midst of a crisis, they look for easily available benchmarks, such as what similar companies have

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accomplished, rather than taking the time to conduct a bottom-up examination of which costs can— and should—be cut. In other cases, individual business unit heads try to meet targets with draconian measures that are unrealistic over the long term, such as across-theboard cuts that don’t differentiate between those that add value or destroy it. In still others, managers use inaccurate or incomplete data to track costs, thus missing important opportunities and confounding efforts to ensure accountability. While there’s no single silver bullet to ensure that cost-management programs will stick,

tion. Yet in our experience, the involvement of top managers is not by itself sufficient—especially in a period of growth, when they naturally turn their attention to other initiatives. Instead, most cost innovation happens at a very small and practical level. Breaking costs out in this way helps managers find the specific groups or individuals responsible for them and to identify and swiftly deal with pockets of expense mismanagement. Take, for example, the cost-cutting program at one multinational high-tech company. Initially, the CFO had little actionable information on

To resolve these issues, the company redefined the way it collected and reported information, to ensure that costs were broken out for each of 100 organizational units. That helped managers quickly identify two headquarters units and a sales organization that were responsible for large cost increases. Together, the managers came up with a plan to control future costs. Among other things, the plan assigned cost accountability to the company’s more than 60 separate organizational units. This approach ensured that the people managing costs were those closest to the decisions, who could ensure that

Intransigent costs Median cost of goods sold (COGS) and sales, general, and administrative (SG&A) costs for S&P 500 companies,1 % of revenue.

1 s&P 500 index as of 2008; sG&a includes R&D expenses.

large, multibusiness unit organizations can better their chances by improving accountability, focusing on how they cut costs, drawing an explicit connection to strategy, and treating cost reductions as an ongoing exercise.

Assigning accountability

Few would dispute that the support of top executives is necessary for cost-management efforts to succeed. Involved CEOs and CFOs, in particular, can help mediate the inherently political nature of such exercises and provide critical energy and motiva-

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who was responsible for which costs. Profit-and-loss (P&L) statements were reported only for product-based business units, even though geographic sales units had higher costs. This lack of detail made it very difficult assigning responsibility for overall cost reductions. For instance, if freight costs for a business unit increased from year to year, it was difficult to determine whether this happened because of shipping behaviour by factories or costs incurred by the sales organization in delivering third-party parts to customers.

industry 2.0

cost management was not hurting the business. Importantly, the process planners who run such programs as Six Sigma improvement efforts generally make the wrong choice to manage cost-cutting programs. Typically, they lack both the content expertise and the authority to make difficult trade-offs in areas that often require more detailed knowledge of where costs occur and the ability to make keen subjective judgements about which costs to cut. Only someone at the level of, say, a sales manager has the detailed knowledge and

- technoLogy management for decision-makers | september 2010 | VoL. ii

management & strategy authority to decide whether it’s really necessary to travel to one client meeting in person, while conducting another by videoconference. Such informed cuts are more likely to endure because the people responsible for them can be held accountable through appropriate incentives, such as performance evaluations, that consider both costs and business performance.

Focus on how to cut, not just how much

Key

Points

►Multibusiness unit organizations can better their chances by improving accountability, focusing on how they cut costs, drawing an explicit connection to strategy, and treating cost reductions as an ongoing exercise. ►Internal benchmarks are easier to access and provide great insights, especially because managers are more likely to understand and adjust for differences among their company’s organizational units.

Cost reduction programs often lose effectiveness over time because top management kicks off the effort with broad cost reduction targets (“How much do we want to save?”) but then leaves decisions on how to meet those targets to individual line managers. The presumption is that they have a more detailed understanding of their particular area of the business and will take the right actions to control costs. While this is true in some instances, we have seen too many cases where managing to a number has resulted in flawed decisions, such as delaying critical investments, shifting costs from one accounting category to another, or even cutting costs in a way that directly undermines revenue generation. Clearly, the benefits of such cost cuts are likely to be illusory, short lived, and at times damaging to longterm value creation. A more enduring approach includes changing the way people think about costs by, for example, setting new policies and procedures and then modeling the desired behaviour. If a company announces, say, a new travel policy, senior managers need to set the tone with their own actions—for example, by aggressively using videoconferences instead of travel or eliminating

september 2010 | VoL. ii | industry 2.0

catering for in-person meetings. Even something as simple as no longer providing sandwiches for lunch meetings can be part of a pattern of behaviour that signals real and enduring change. And since backpedaling on this kind of behaviour when the economy picks up again would send the reverse message, managers should model only cost cuts they intend to stick with. If they know they’ll eventually restore catering for in-person meetings, it could well be better not to cut it in the first place. Benchmarks matter. External ones on some measures may be difficult to get, but where they are available—for example, on travel expenses—they can enable managers to compare performance across different units and identify real differences, as well as trade-offs that may not be in line with the organization’s overall strategy. Internal benchmarks are easier to access and provide great insights, especially because managers are more likely to understand and adjust for differences among their company’s organizational units than among different companies represented by external benchmarks. One multinational capital goods manufacturer combined the two perspectives, analyzing the major categories of expenditure and developing targets based on both internal and external benchmarks. Using external ones for travel spending, managers found that the company’s travel costs were higher than those of any peer—both per employee and as a percentage of revenue. They then set an aggressive target to reduce travel expenses—and, to make the effort stick, instituted new travel policies on booking hotels and airfares. By examining internal benchmarks across suborganizations (such as departments, business units, or

- technoLogy management for decision-makers

locations), managers also identified which executives needed to better educate their organizations on travel policy. In addition, they increased accountability by tracking each unit’s performance on a monthly basis to measure compliance and encouraged underperforming divisions to manage their travel costs more aggressively. The effort changed travel behaviour across the entire organization as subunits shared best practices.

Don’t let P&L accounting data get in the way of cost reduction

CFOs often manage cost reduction efforts by tracking accounting data in their companies’ P&L statements. These can be a useful starting point in a crisis, if other data are unavailable. But over the long term, P&L categories, such as overall SG&A costs, don’t give the kind of per-unit insights that help focus cuts in, say, travel expenses on the units that can best afford to cut them. Unfortunately, few companies have the kinds of systems they need to track costs at a fine-grained level—and they face a number of challenges in establishing them. Multiple data systems may make it difficult to aggregate and compare data from different geographies. Inconsistent accounting practices between businesses or time periods may lead to significant distortions. Changes in organizational structure (as a result of acquisitions, divestitures, or even changes in the allocation of overhead costs) may similarly distort tracking. Finally, one-time expenses in either the baseline or the tracking period may become excuses for deviations from the plan. As a result, business or functional managers often use data issues to divert attention from their lack of progress.

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Benchmarking costs For a multinational capital goods manufacturer

Indeed, one medical-product company experienced all these issues simultaneously in the initial stages of its cost transformation program. Business unit heads objected that tracking numbers from the central financial database were flawed because of a range of factors. As a result, the company couldn’t reduce costs during the first several months of its program, and discussions focused on the integrity of the data rather than potential initiatives. To resolve the problem, companies must continuously track, in some detail, the expenses behind the P&L to identify areas of underperformance, without worrying about the formal accounting of the costs. Identifying, measuring, and controlling their most important drivers is more important than how the savings

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are booked and reported. To manage costs at the necessary level of detail, the CFO of the company above gave each business unit head and controller full access to a centralized cost database linked to the official P&L. Each controller received a standardized template to record any adjustments affecting the baseline, along with exact amounts, periods, and offsetting adjustments. The CFO then aggregated the data into a simple cost-tracking report that he shared with all involved. After two months, the increased transparency eliminated all data disputes—and the organization met its full-year cost reduction target in just six months. Two by-products were increased standardization of internal accounting and a dramatic reduc-

industry 2.0

tion in several cost categories bucketed under “other costs.” By getting the data right and moving quickly beyond questions about data integrity, the organization significantly simplified the effort of cost reporting, making it much easier to maintain the cost program over time.

Clearly articulate the link between cost management and strategy

Strategy must lead cost-cutting efforts, not vice versa. The goal cannot be merely to meet a bottom-line target. Indeed, among participants in a November 2009 survey, those who worked for companies that took an acrossthe-board approach to cost cutting in the recent downturn doubt that the cuts are sustainable. Those who predicted that the cuts

- technoLogy management for decision-makers | september 2010 | VoL. ii

management & strategy

Key

Points

►Strategy must lead cost-cutting efforts, not vice versa. ►To create value through cost cutting, managers need to understand the best ways to allocate operating expenses, such as selling costs and R&D. ►Mapping costs against business units and geographies will reveal both opportunities for cost reductions and areas in which the business should increase its investments.

could be sustained over the next 18 months were more likely to say that their companies chose a targeted approach. Yet in our observation, many companies do not explicitly link cost reduction initiatives to broader strategic plans. As a result, reduction targets are set so that each business unit does “its fair share”—which starves highperforming units of the resources needed for valuable growth investments while generating only meagre improvements at poorly performing units. Moreover, initiatives in one area of a business often have unintended negative consequences for the company as a whole. For example, a global low-tech medical-device company’s initiatives to reduce manufacturing and product costs were led at the plant level, without input or customer insights from sales and marketing teams. The leaders of the cost-cutting effort in manufacturing nearly rendered several products defective because they did not know how customers used the products. Consequently, the effort led to the loss of accounts and market share. To create value through cost cutting, managers need to understand the best ways to allocate operating expenses, such as selling costs and R&D. To do so, they must understand, at the most detailed possible level, the return on invested capital (ROIC) and the growth of the markets in which a company plays. Mapping costs against business units and geographies will reveal both opportunities for cost reductions and areas in which the business should increase its investments to take advantage of growth opportunities or to “double down” in high-ROIC businesses. At a high-tech company, for example, the granular mapping of R&D spending by product families

september 2010 | VoL. ii | industry 2.0

identified some that despite their ageing technological and growth profiles were still receiving R&D and marketing investments. Clearly, these low-ROIC businesses did not warrant a high level of new resources. Management could redirect them to growth units because it was able to map costs at a very granular level. With such insights, managers will also be able to deliver a consistent message on how cost reductions would make a company stronger—a message reducing short-term resistance and even inspiring the organization to support the effort. Moreover, once these practices are baked into the company’s standard operating practices, cost reductions will become a more enduring part of its strategy for long-term health.

Treat cost management as an ongoing exercise

Most companies treat cost management as a one-off exercise driven by the need to manage short-term profit targets—and some of these exercises do succeed in the short term because of constant pressure from the CEO or CFO. Yet such hasty cost-cutting activity typically goes into reverse once the pressure is removed and rarely results in sustainable changes in cost structure. In our experience, the reason is that one-off exercises don’t require internal capability building. A better approach is to use the initial cost reduction program as an opportunity to build a competency in cost management rather than in mere cost reduction. Cost-management programs need to be scoped as two- to three-year initiatives rather than as immediate-term efforts with one-year horizons. Also, effective costmanagement programs, by their very nature, include plans for

- technoLogy management for decision-makers

dealing with changing business conditions—for instance, by adjusting for activity-level changes, competitive drivers, or both. In the case of the multinational manufacturing company, many of the processes introduced as part of the cost reduction initiative became the basis for ongoing cost management. The finance and accounting group created a system for monitoring costs at a detailed and accurate level, where none had existed before. Managers encouraged greater communication between finance and accounting, the business units, and functional groups such as IT. Better communication uncovered inconsistencies in accounting practices. Changes in performance-management systems and incentives further promoted the cost-management approach. Purchasing managers found clear areas of waste that could be sustainably removed from the cost base. Toward the end of the third fiscal quarter of the effort, detailed plans for building upon and sustaining the initiative through the next fiscal year were developed and vetted. These plans and practices enabled the company to manage costs in the long term. Companies must improve their processes and capabilities if they hope to reduce or contain costs in a sustainable manner. Rethinking common practices in cost management should help to realize this goal. In particular, achieving a more fine-grained perspective on where costs occur should be a centerpiece of any successful cost-management program. Ankur Agrawal is a consultant in McKinsey’s New York office, Olivia Nottebohm is an associate principal in the San Francisco office, and Andy West is a partner in the Boston office. This article was first published in May 2010 on The McKinsey Quarterly Web site, www.mckinseyquarterly.com. Copyright 2010 McKinsey & Company. All rights reserved. Reprinted by permission.

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2.0 Top

Manufacturing

SMBs

september 2010 | VOL. II | industry 2.0

- technology management for decision-makers

12 ctor re 8 port

11 ctoral ra 8 nking

38 p 500 c

lo gy m

37 ethodo

.. EX IN D 36

Every year Industry 2.0 analyzes and presents a list of the nationâ&#x20AC;&#x2122;s largest and most profitable manufacturing companies. In our 8th annual ranking of the Top 500 companies in India, we present companies, both large and small, that have turned in an exceptional performance during the financial year 2009.

www.industry20.com

TOP 500 RANKING PROCESS The Industry 2.0 rankings of manufacturing companies have been derived through an extensive and comprehensive analysis of financial data to give you insight into the performance of the manufacturing industry.

determine ranking of manufacturing companies in India, data on key performance indicators was obtained from the CMIE Prowess database. This repository contains information on more than 10,000 manufacturing companies. Organizations were selected based on the availability of financial data for the

MANUFACTURING SMBs Auto Ancillary Automobile Cement Chemicals Cosmetics & Soaps Diversified Drugs & Pharmaceuticals Batteries Electronics Ferrous Metals Food & Beverage Gems & Jewellery Electrical Machinery Glass & Ceramics Leather & Leather Products Machine Tools Metal Products Non Electrical Machinery Non Ferrous Metals Non Metallic Mineral Products Paper & Wood Products Petroleum Products Polymers & Plastic Products Steel Tubes & Pipes Textiles Rubber Products Wires & Cables Total

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years 2007-08 and 2008-09. Subsequenly, companies with negative Profit after Tax (PAT) for the year 2008-09 were eliminated. A total of 2,028 manufacturing companies that met the selection criteria were considered for further analysis. Given a wide range of companies in terms of sales revenues in the sample, the

LARGE MANUFACTURING COs 6.4% 1.4% 0.8% 9.4% 1.2% 0.4% 7.1% 0.2% 4.9% 7.6% 14.0% 0.9% 3.6% 1.8% 1.2% 1.0% 3.2% 4.9% 1.8% 1.2% 4.3% 0.7% 6.8% 1.2% 10.9% 2.0% 1.0% 100.0%

Auto Ancillary Automobile Cement Chemicals Cosmetics & Soaps Diversified Drugs & Pharmaceuticals Batteries Electronics Ferrous Metals Food & Beverage Gems & Jewellery Electrical Machinery Glass & Ceramics Leather & Leather Products Machine Tools Metal Products Non Electrical Machinery Non Ferrous Metals Non Metallic Mineral Products Paper & Wood Products Petroleum Products Polymers & Plastic Products Steel Tubes & Pipes Textiles Rubber Products Wires & Cables Total

industry 2.0

5.8% 5.2% 3.7% 10.1% 2.0% 2.3% 7.5% 0.6% 4.5% 9.7% 11.1% 2.3% 2.8% 2.5% 0.8% 0.2% 2.2% 4.3% 1.5% 1.4% 2.5% 2.2% 3.4% 2.6% 5.7% 1.2% 2.2% 100.0%

2,028 selected companies were divided into two groups. Companies with net revenues greater than Rs. 300 crore for the financial year 2008-09 were classified as Sample 1 (Top manufacturing companies), while companies with net revenues below Rs. 300 crore were included in Sample 2 (Top manufacturing Smbs). Of the 2,028 companies we looked at, 647 comprised Sample 1, and remaining 1,381 were classified as SMBs. This annual issue of Industry 2.0 lists the ranks of Top 500 Large Manufacturing Companies and Top 500 Manufacturing SMBs in two separate volumes. The performance of the selected companies was compared and ranked across 9 parameters (sales turnover, absolute increase in sales, percentage change in the sales turnover, net profit, increase in net profit, PAT/Sales ratio, return on capital employed and increase across two financial years). This method offered the advantage of eliminating any subjectivity associated with assignment of weights to the parameters considered for ranking the performance of companies. Scores for all parameters were assigned based on the relative rank of an individual company on that parameter. Composite scores were then calculated for each company as the sum of the scores obtained by each company on all parameters. The companies were finally ranked on the composite score.

- technology management for decision-makers | september 2010 | VOL. II

2.0

Top

Manufacturing

2010 2009 Change

COMPANY

INDUSTRY SECTOR

INDUSTRIAL ACTIVITY

CHANGE IN NET

NET SALES (Rs Crore)

INDUSTRIAL ACTIVITY

INDUSTRY SECTOR

COMPANY

Rank

SMBs

2007-08

2008-09

Rs. Crore

Tecpro Ashtech Ltd.

Automobiles

Ash handling plants

76.75

198.99

122.24

233

Zydus Wellness Ltd.

Food and Beverage

Protein concentrates

57.49

195.62

138.13

Jolly Board Ltd.

Paper, Books, cards and Wood products

Particle boards

58.68

123.99

65.31

1273

Driplex Water Engg. Ltd.

Non Electrical Machinery

Water treatment plants

82.88

187.07

104.19

551

Caparo Maruti Ltd.

Auto Ancillary

Auto sheet metals parts

157.44

256.77

99.33

984

Sree Rayalaseema Hi-Strength Hypo Ltd.

Chemicals

Inorganic chemicals

112.51

202.68

90.17

61.49

145.78

84.29

Gandhimathi Appliances Ltd.

Electronics

Grinders, mixers & fruit or vegetable juice extract

Shantha Biotechnics Ltd.

Drugs and Pharmaceuticals

Vaccines

144.11

209.05

64.94

Best & Crompton Engg. Ltd.

Generators Transformers Switchgears and Misc Electrical machinery

Electrical machinery, nec

90.67

176.88

86.21

271

V S T Tillers Tractors Ltd.

Non Electrical Machinery

Power tillers

190.55

276.54

85.99

400

Deepak Industries Ltd.

Auto Ancillary

Gears including crown wheels

91.66

189.71

98.05

Chloride Metals Ltd.

Non Ferrous Metals

Lead

62.43

152.76

90.33

Sulzer India Ltd.

Non Electrical Machinery

Textile (incl. jute) machinery

130.25

204.73

74.48

Tea Estates India Ltd.

Food and Beverage

Tea

42.64

68.88

26.24

Allana Cold Storage Ltd.

Food and Beverage

Meat of sheep, goats

186.08

246.76

60.68

292

Indsil Hydro Power & Manganese Ltd.

Ferrous Metals

Ferro silicon

52.71

88.63

35.92

Technofab Engineering Ltd.

Metal Products

Other fabricated metal products

81.13

149.23

68.10

Farm Enterprises Ltd.

Food and Beverage

Fruit & nuts

10.99

132.54

121.55

1302

Warren Tea Ltd.

Food and Beverage

Tea

134.45

169.39

34.94

203

Usher Agro Ltd.

Food and Beverage

Rice

69.26

140.63

71.37

Vegan Colloids Ltd.

Food and Beverage

Guar gum

32.19

95.47

63.28

Solus Pharmaceuticals Ltd.

Drugs and Pharmaceuticals

Pharmaceutical products, nec

0.02

35.84

35.82

Surat Textile Mills Ltd.

Textiles

Polyester filament yarn (PFY)

90.14

165.52

75.38

1008

Harinagar Sugar Mills Ltd.

Food and Beverage

Sugar

149.57

211.88

62.31

september 2010 | VOL. II | industry 2.0

- technology management for decision-makers

www.industry20.com

Perc

Key/ Hosting

PAT/NET SALES

CHANGE In ROCE

ROCE Rs Crore)

CHANGE in PAT

PAT (Rs Crore)

PBDITA (Rs Crore)

CHANGE IN NET SALES

Meet the top performers of India who have scored big through innovative thinking, cost-optimisation strategies, intelligent marketing and quality products and services, and, of course, sheer hard work.

rore

Percentage

2007-08

2008-09

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

159%

4.15

24.39

1.70

18.41

16.71

983%

7.14

37.2

30.06

421%

240%

7.95

39.80

4.62

25.44

20.82

451%

20.5

54.43

33.93

166%

13%

111%

12.63

70.59

6.45

50.16

43.71

678%

27.22

98.76

71.54

263%

11%

40%

126%

4.60

22.00

1.99

11.46

9.47

476%

5.41

27.59

22.18

410%

63%

21.72

43.51

5.94

19.62

13.68

230%

8.16

23.67

15.51

190%

80%

13.29

36.44

4.53

16.87

12.34

272%

9.26

21.77

12.51

135%

137%

5.69

15.75

0.86

6.87

6.01

699%

17.03

42.47

25.44

149%

45%

39.41

83.93

20.01

58.29

38.28

191%

9.86

23.04

13.18

134%

14%

28%

95%

9.26

48.66

3.80

22.89

19.09

502%

2.6

12.8

10.2

392%

13%

45%

25.07

46.25

13.87

27.77

13.90

100%

22.63

35.15

12.52

55%

10%

107%

11.31

33.55

8.06

22.74

14.68

182%

70.76

82.06

11.3

16%

12%

145%

3.34

9.12

0.57

4.60

4.03

707%

5.47

29.54

24.07

440%

57%

28.95

47.82

15.08

27.38

12.30

82%

38.02

53.01

14.99

39%

12%

13%

62%

6.96

23.70

2.21

19.12

16.91

765%

4.13

32.34

28.21

683%

28%

33%

8.25

29.62

4.19

18.65

14.46

345%

3.83

15.57

11.74

307%

68%

11.75

25.31

4.90

17.84

12.94

264%

7.86

27.09

19.23

245%

20%

84%

9.10

19.68

5.29

11.73

6.44

122%

25.23

39.26

14.03

56%

1106%

10.56

131.38

10.20

131.24

121.04

1187%

0.68

7.51

6.83

1004%

93%

99%

26%

12.09

28.53

0.76

14.26

13.50

1776%

0.88

17.14

16.26

1848%

103%

7.12

19.12

3.89

12.75

8.86

228%

14.24

23.48

9.24

65%

197%

3.66

21.34

1.86

10.74

8.88

477%

4.06

15.98

11.92

294%

11%

179100%

-0.03

35.77

0.09

21.67

21.58

23978%

0.7

20.02

19.32

2760%

450%

60%

84%

2.48

8.31

0.30

5.64

5.34

1780%

0.66

11.19

10.53

1595%

42%

25.52

55.12

1.75

15.08

13.33

762%

1.22

8.68

7.46

611%

www.industry20.com

industry 2.0

- technology management for decision-makers | september 2010 | VOL. II

*1) Net sales = Total income – Other income – Extra ordinary income – Prior period income – Indirect taxes. 2) PAT = PBIT – Tax. 3) PAT net of pne = PAT – Prior period income – Extra ordinary income + Prior period expenses + Extra ordinary expenses. 4) Roce = PAT net of pne/Avg capital employed. 5) Capital employed = (paid up equity capital + capital contribution by govt + cap suspense and other acct) +(paid up pref capital + pref suspense account) + (reserves and funds + res revaluation + misc exp not written off) + (borrowings – sec short term bank borr unsec short term bank borr-commercial papers – capital convertible warrants). 6) Source of Data: CMIE Prowess database.

Industry 2.0 presents the Batch of 2010.

2.0 Top

2010 2009 Change

COMPANY

INDUSTRY SECTOR

INDUSTRIAL ACTIVITY

CHANGE IN NET

NET SALES (Rs Crore)

INDUSTRIAL ACTIVITY

INDUSTRY SECTOR

COMPANY

Rank

Manufacturing SMBs

2007-08

2008-09

Rs. Crore

Met-Rolla Steels Ltd.

Ferrous Metals

Bars & rods

169.69

202.99

33.30

276

Goodricke Group Ltd.

Food and Beverage

Tea

237.35

293.67

56.32

1106

Transpek Industry Ltd.

Chemicals

Salts of inorganic acids & metals

108.89

167.93

59.04

G P T Infraprojetcs Ltd.

Non Metallic Mineral products

Products of cement, concrete, etc.

132.64

220.42

87.78

240

Sahyadri Industries Ltd.

Non Metallic Mineral products

Corrugated asbestos sheets

203.39

242.59

39.20

698

Keltech Energies Ltd.

Chemicals

Explosives

83.78

114.36

30.58

653

Swaraj Engines Ltd.

Non Electrical Machinery

Diesel engines

128.84

213.26

84.42

Static converters & rectifiers

90.26

121.82

31.56

1040

Autometers Alliance Ltd.

Generators Transformers Switchgears and Misc Electrical machinery

637

Nitta Gelatin India Ltd.

Chemicals

Gelatin

151.87

187.83

35.96

1166

Parry Agro Inds. Ltd.

Food and Beverage

Tea

96.81

176.09

79.28

Venture Lighting India Ltd.

Electronics

Electric arc lamps

147.77

183.10

35.33

806

Furnace Fabrica (India) Ltd.

Metal Products

Other fabricated metal products

201.91

244.47

42.56

617

Meghmani Industries Ltd.

Chemicals

Pesticides

109.40

189.76

80.36

Ajeet Seeds Ltd.

Food and Beverage

Cotton seed

49.25

80.47

31.22

147

Page Industries Ltd.

Textiles

Apparels (Readymade garment)

195.60

259.61

64.01

236

I F B Agro Inds. Ltd.

Food and Beverage

Rectified spirit

166.44

240.53

74.09

279

Bajaj Steel Inds. Ltd.

Polymers and Plastic Products

Sacks & bags

188.19

230.22

42.03

M K Shah Exports Ltd.

Food and Beverage

Tea

113.49

143.20

29.71

1269

Hindusthan Udyog Ltd.

Ferrous Metals

Steel castings

23.40

60.56

37.16

Sri Krishna Pharmaceuticals Ltd.

Drugs and Pharmaceuticals

Drug formulations

117.78

140.86

23.08

Amar Remedies Ltd.

Cosmetics, Toiletries, Soaps & Detergents

Tooth paste

201.86

298.37

96.51

National Peroxide Ltd.

Chemicals

Hydrogen peroxide

109.54

135.04

25.50

Filtra Catalysts & Chemicals Ltd.

Chemicals

Catalysts, reaction initiators

34.98

48.88

13.90

Simplex Engineering & Foundry Works Pvt. Ltd.

Non Electrical Machinery

Industrial machinery

212.88

256.12

43.24

530

Advance Steel Tubes Ltd.

Steel Tubes and Pipes

Tubes & pipes

153.85

190.88

37.03

352

Empire Industries Ltd.

Glass, Ceramics & Refractories

Bottles

139.57

171.26

31.69

Pearl Beverages Ltd.

Food and Beverage

Soft drinks

69.78

93.32

23.54

Hawkins Cookers Ltd.

Electronics

Cookers

204.31

242.77

38.46

W P I L Ltd.

Non Electrical Machinery

Pumps

109.84

159.20

49.36

Kudos Chemie Ltd.

Drugs and Pharmaceuticals

Caffeine & its salts

105.92

226.68

120.76

Sandal wood oil

27.93

44.87

16.94

1153

Tamilnadu Forest Plantation Corpn. Ltd.

Cosmetics, Toiletries, Soaps & Detergents

195

Nagpur Power & Inds. Ltd.

Ferrous Metals

Ferro alloys

13.64

28.65

15.01

899

Anil Products Ltd.

Chemicals

Starches modified, adhesives, etc.

225.65

277.06

51.41

Switch mode power supply systems Detonating, safety & other fuses, igniters

70.89

105.14

34.25

47.11

74.88

27.77

Exicom Tele-Systems Ltd.

Electronics

127

Economic Explosives Ltd.

Chemicals

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Perc

PAT/NET SALES

CHANGE In ROCE

ROCE Rs Crore)

CHANGE in PAT

PAT (Rs Crore)

PBDITA (Rs Crore)

CHANGE IN NET SALES Percentage

2007-08

2008-09

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

20%

2.20

7.07

0.68

5.92

5.24

771%

5.64

50.13

44.49

789%

24%

19.35

32.48

6.89

16.66

9.77

142%

9.31

20.48

11.17

120%

54%

9.80

22.92

0.54

8.03

7.49

1387%

0.78

10.21

9.43

1209%

66%

14.11

23.69

2.52

8.40

5.88

233%

4.76

12.87

8.11

170%

19%

31.06

42.31

6.65

19.65

13.00

195%

6.9

20.92

14.02

203%

37%

1.61

9.33

0.21

4.81

4.60

2190%

1.5

27.47

25.97

1731%

66%

26.63

36.92

14.36

21.28

6.92

48%

18.08

23.65

5.57

31%

11%

10%

35%

9.01

20.15

2.60

10.66

8.06

310%

5.75

20.39

14.64

255%

24%

17.61

36.54

6.32

17.20

10.88

172%

8.22

20.42

12.2

148%

82%

21.64

71.71

8.24

27.96

19.72

239%

3.29

7.52

4.23

129%

16%

24%

24.15

55.58

16.13

40.92

24.79

154%

7.89

17.56

9.67

123%

11%

22%

21%

17.08

33.58

8.41

16.85

8.44

100%

25.65

35.75

10.1

39%

73%

15.00

22.67

10.72

17.58

6.86

64%

10.77

15.88

5.11

47%

10%

63%

3.26

8.73

0.03

3.69

3.66

12200%

0.17

22.53

22.36

13153%

33%

41.07

58.32

23.73

32.35

8.62

36%

29.32

33.53

4.21

14%

12%

45%

18.05

28.44

7.80

13.02

5.22

67%

11.94

17.33

5.39

45%

22%

16.34

29.90

6.13

12.88

6.75

110%

14.23

23.54

9.31

65%

26%

12.93

24.25

7.37

16.78

9.41

128%

11.79

22.04

10.25

87%

12%

159%

1.46

8.62

0.48

4.76

4.28

892%

4.31

18.73

14.42

335%

20%

8.14

18.36

2.25

8.75

6.50

289%

6.9

25.22

18.32

266%

48%

27.01

36.20

17.05

21.76

4.71

28%

16.5

18.61

2.11

13%

23%

27.85

42.03

10.59

20.01

9.42

89%

12.98

24.56

11.58

89%

10%

15%

40%

4.73

15.41

1.70

8.51

6.81

401%

9.85

50.13

40.28

409%

17%

20%

23.57

37.81

9.59

17.46

7.87

82%

11.57

18.39

6.82

59%

24%

11.58

19.66

6.49

12.05

5.56

86%

17.7

25.94

8.24

47%

23%

24.86

39.31

9.13

17.29

8.16

89%

12.34

20.55

8.21

67%

10%

34%

11.72

15.45

1.93

7.47

5.54

287%

4.21

18.23

14.02

333%

19%

20.71

29.65

11.13

16.38

5.25

47%

42.55

51.57

9.02

21%

45%

11.60

17.11

4.87

8.02

3.15

65%

22.95

29.21

6.26

27%

114%

36.81

70.70

16.22

27.27

11.05

68%

14.44

14.94

0.5

15%

12%

61%

5.33

14.90

3.91

12.35

8.44

216%

8.44

22.39

13.95

165%

14%

28%

110%

8.62

22.35

4.69

13.56

8.87

189%

13.03

30.02

16.99

130%

34%

47%

23%

21.35

29.37

3.21

9.81

6.60

206%

3.15

9.08

5.93

188%

48%

11.66

18.24

6.87

11.30

4.43

64%

19.39

25.43

6.04

31%

10%

11%

59%

19.09

29.16

11.09

17.64

6.55

59%

25.5

31.11

5.61

22%

24%

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Key/ Hosting

2.0 Top

1109

COMPANY

INDUSTRY SECTOR

INDUSTRIAL ACTIVITY

CHANGE IN NET

NET SALES (Rs Crore)

INDUSTRIAL ACTIVITY

2010 2009 Change

INDUSTRY SECTOR

COMPANY

Rank

Manufacturing SMBs

2007-08

2008-09

Rs. Crore

Luxmi Tea Co. Ltd.

Food and Beverage

Tea

48.44

79.50

31.06

Madhu Jayanti International Ltd.

Food and Beverage

Tea

113.61

151.09

37.48

Flowserve Sanmar Ltd.

Leather & Leather products

Shoe uppers

110.90

134.58

23.68

Axiom Impex Intl. Ltd.

Polymers and Plastic Products

Plastic Products

129.66

223.42

93.76

1230

Asian Fertilizers Ltd.

Chemicals

Single superphosphate

17.13

55.30

38.17

R S Infra-Transmission Ltd.

Ferrous Metals

Finished Steel (Non-Alloy Steel)

124.97

183.12

58.15

India Gelatine & Chemicals Ltd.

Chemicals

Gelatin

59.66

82.27

22.61

Kiri Dyes & Chemicals Ltd.

Chemicals

Dyes

225.98

282.65

56.67

385

G R M Overseas Ltd.

Food and Beverage

Rice

177.73

256.12

78.39

Metro Dairy Ltd.

Food and Beverage

Milk

180.01

202.86

22.85

439

Piccadily Agro Inds. Ltd.

Food and Beverage

Sugar

117.02

139.19

22.17

Bheema Cements Ltd.

Cement

33.42

73.91

40.49

Schott Glass India Pvt. Ltd.

Glass, Ceramics & Refractories

Glass in tubes

112.78

147.39

34.61

Kraft paper & paperboard

166.59

229.34

62.75

246

Rainbow Papers Ltd.

Paper, Books, cards and Wood products

165

Insecticides (India) Ltd.

Chemicals

Pesticides

198.95

264.63

65.68

919

Rambal Ltd.

Auto Ancillary

Fuel injection equipment spares

43.11

63.87

20.76

376

Wim Plast Ltd.

Polymers and Plastic Products

Plastic injection moulding items

72.05

92.20

20.15

1178

T Stanes & Co. Ltd.

Diversified

130.78

151.80

21.02

Vinati Organics Ltd.

Chemicals

Benzene

150.12

195.56

45.44

Precision Camshafts Ltd.

Auto Ancillary

Automobile ancillaries

103.12

155.63

52.51

1138

Rajratan Global Wire Ltd.

Metal Products

Wires & ropes of iron & steel

107.09

144.06

36.97

Witmans Petrochem Ltd.

Petroleum Products

Lube oils & lubricants

3.78

28.79

25.01

1101

Rajasthan State Ganganagar Sugar Mills Ltd.

Food and Beverage

Sugar

235.73

267.96

32.23

1309

Camphor & Allied Products Ltd.

Chemicals

Camphor

105.54

136.42

30.88

Rainbow Agri Inds. Ltd.

Food and Beverage

Animal and bird feeds

10.73

30.06

19.33

1127

Maharaja Shree Umaid Mills Ltd.

Textiles

Cotton & blended yarn

257.45

298.97

41.52

727

New Horizons Ltd.

Leather & Leather products

Leather gloves

64.73

100.43

35.70

Flamingo Pharmaceuticals Ltd.

Drugs and Pharmaceuticals

Drug formulations

146.49

185.57

39.08

1052

Gansons Ltd.

Non Electrical Machinery

Chemical machinery

48.05

70.21

22.16

Bedmutha Industries Ltd.

Metal Products

Wires & ropes of iron & steel

115.05

147.10

32.05

Jindal Steel & Alloys Ltd.

Ferrous Metals

Cold rolled coils, strips, sheets

1.14

18.16

17.02

Kariwala Industries Ltd.

Textiles

Sacks/Bags (Cotton)

19.75

33.59

13.84

Shah Paper Mills Ltd.

Paper, Books, cards and Wood products

Kraft paper & paperboard

154.01

227.54

73.53

30.53

50.69

20.16

3.84

19.24

15.40

178

Acrysil Ltd.

Polymers and Plastic Products

Tableware, kitchenware, other household articles

A N S Ltd.

Food and Beverage

Vegetable / fruit products

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Perc

PAT/NET SALES

CHANGE In ROCE

ROCE Rs Crore)

CHANGE in PAT

PAT (Rs Crore)

PBDITA (Rs Crore)

CHANGE IN NET SALES Percentage

2007-08

2008-09

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

64%

6.38

11.81

1.68

6.41

4.73

282%

3.72

13.18

9.46

254%

33%

3.68

9.50

1.03

5.26

4.23

411%

2.31

10.99

8.68

376%

21%

42.72

55.51

26.51

34.93

8.42

32%

72.69

89.04

16.35

22%

24%

26%

72%

18.58

38.53

12.43

22.85

10.42

84%

22.91

21.96

-0.95

-4%

10%

223%

0.63

2.46

0.20

1.69

1.49

745%

4.63

32.41

27.78

600%

47%

7.15

12.38

1.07

2.72

1.65

154%

8.9

18.64

9.74

109%

38%

4.83

17.20

0.60

8.55

7.95

1325%

0.7

9.6

8.9

1271%

10%

25%

33.75

59.33

19.06

35.83

16.77

88%

27.85

27.84

-0.01

13%

44%

6.55

8.65

1.86

3.42

1.56

84%

6.16

14.72

8.56

139%

13%

7.01

14.23

1.71

6.87

5.16

302%

4.3

18.75

14.45

336%

19%

8.47

18.87

1.44

9.01

7.57

526%

2.51

12.87

10.36

413%

121%

12.10

28.21

3.29

15.33

12.04

366%

2.93

6.52

3.59

123%

10%

21%

31%

20.01

36.54

1.46

9.83

8.37

573%

1.4

6.31

4.91

351%

38%

34.81

49.86

10.68

23.61

12.93

121%

7.54

8.97

1.43

19%

10%

33%

19.24

27.24

14.40

20.92

6.52

45%

23.03

23.23

0.2

48%

6.37

12.25

0.67

4.94

4.27

637%

2.12

14.36

12.24

577%

28%

8.57

14.94

2.66

8.28

5.62

211%

5.21

15.96

10.75

206%

16%

7.50

11.95

1.09

5.69

4.60

422%

2.86

16.32

13.46

471%

30%

29.29

38.36

15.09

25.00

9.91

66%

30.24

-0.24

-1%

10%

13%

51%

13.74

27.45

3.64

8.17

4.53

124%

7.25

10.14

2.89

40%

35%

9.04

17.72

1.13

5.60

4.47

396%

1.6

7.45

5.85

366%

662%

0.23

2.14

0.14

1.76

1.62

1157%

15.38

122.22

106.84

695%

14%

2.98

3.41

0.82

2.54

1.72

210%

6.79

24.71

17.92

264%

29%

3.68

11.36

0.42

4.68

4.26

1014%

0.76

8.26

7.5

987%

180%

2.46

8.49

1.01

4.42

3.41

338%

7.89

23.48

15.59

198%

15%

16%

22.09

26.15

0.27

6.38

6.11

2263%

0.18

4.49

4.31

2394%

55%

3.62

7.05

1.19

2.76

1.57

132%

9.93

20.79

10.86

109%

27%

15.77

21.83

5.20

8.95

3.75

72%

10.24

15.24

49%

46%

2.80

6.17

0.90

2.84

1.94

216%

9.8

26.35

16.55

169%

28%

10.89

16.88

3.58

7.04

3.46

97%

16.04

21.8

5.76

36%

1493%

-1.15

18.08

1.30

16.46

15.16

1166%

23.38

28.53

5.15

22%

114%

91%

70%

4.00

8.41

2.73

6.83

4.10

150%

28.68

47.43

18.75

65%

14%

20%

48%

21.08

33.37

4.63

9.28

4.65

100%

4.67

6.89

2.22

48%

66%

6.64

12.20

3.55

7.12

3.57

101%

30.45

38.37

7.92

26%

12%

14%

401%

0.99

4.07

0.43

3.55

3.12

726%

4.05

30.39

26.34

650%

11%

18%

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COMPANY

INDUSTRY SECTOR

INDUSTRIAL ACTIVITY

CHANGE IN NET

NET SALES (Rs Crore)

INDUSTRIAL ACTIVITY

2010 2009 Change

INDUSTRY SECTOR

COMPANY

Rank

Manufacturing SMBs

2007-08

2008-09

Rs. Crore

974

Suprajit Engineering Ltd.

Auto Ancillary

Automobile equipment

138.51

165.14

26.63

690

Mcnally Sayaji Engg. Ltd.

Automobiles

Construction machinery

60.32

203.69

143.37

Indian Immunologicals Ltd.

Drugs and Pharmaceuticals

Vaccines

191.96

222.86

30.90

Kraft paper & paperboard

23.36

39.19

15.83

Ganga Papers India Ltd.

Paper, Books, cards and Wood products

Arch Life Sciences Ltd.

Drugs and Pharmaceuticals

Drugs, medicines & allied products

24.27

51.24

26.97

100

940

Peria Karamalai Tea & Produce Co. Ltd.

Food and Beverage

Tea

24.56

34.92

10.36

Fem Care Pharma Ltd. [Merged]

Beauty or make-up preparations

94.30

110.45

16.15

Reclaimed rubber

110.83

135.95

25.12

101

102

523

Gujarat Reclaim & Rubber Products Ltd.

Cosmetics, Toiletries, Soaps & Detergents Tyres and Tubes and Rubber Products

103

438

Cera Sanitaryware Ltd.

Glass, Ceramics & Refractories

Ceramic sinks, wash basins, etc.

127.99

160.48

32.49

104

Oleofine Organics (India) Pvt. Ltd.

Chemicals

Organic chemicals

96.60

137.50

40.90

105

816

Maithan Ceramic Ltd.

Glass, Ceramics & Refractories

Refractory bricks

83.12

107.56

24.44

106

315

Mather & Platt Pumps Ltd.

Non Electrical Machinery

Centrifugal pumps

182.90

254.43

71.53

107

445

Proseal Closures Ltd.

Metal Products

36.75

50.14

13.39

108

540

Anjaneya Cold Storage Ltd.

Food and Beverage

Stoppers, caps & lids (including crown caps) Meat & edible offals of other animals

136.68

150.68

14.00

109

Gentech Laboratories Ltd.

Drugs and Pharmaceuticals

Drug formulations

5.72

11.58

5.86

India Thermit Corpn. Ltd.

Metal Products

Miscellaneous articles of base metals, nec

59.46

82.43

22.97

Prasol Chemicals Ltd.

Polymers and Plastic Products

Polyester or contract resins

63.91

89.85

25.94

Kraft paper & paperboard

159.98

223.82

63.84

110

111

716

112

Shakumbhri Straw Products Ltd.

Paper, Books, cards and Wood products

113

Hindustan Tin Works Ltd.

Non Ferrous Metals

Tin container

185.80

244.32

58.52

114

Sethia Oils Ltd.

Food and Beverage

Rice bran oil

84.43

104.64

20.21

115

Apollo Metalex Pvt. Ltd.

Ferrous Metals

Clad, plated or coated flat rolled products

34.88

81.14

46.26

Transformers

40.68

70.21

29.53

116

Tesla Transformers Ltd.

Generators Transformers Switchgears and Misc Electrical machinery

117

Synthetic Moulders Ltd.

Polymers and Plastic Products

Plastic Products

25.05

41.81

16.76

118

304

Bharat Rasayan Ltd.

Chemicals

Pesticides

69.96

106.88

36.92

119

463

Amines & Plasticizers Ltd.

Chemicals

Plasticisers

106.29

158.91

52.62

120

Hyderabad Chemicals Ltd.

Chemicals

Pesticides

150.27

177.84

27.57

59.68

81.00

21.32

165.67

217.53

51.86

121

377

Mazda Ltd.

Electronics

122

402

Vasudha Pharma Chem Ltd.

Drugs and Pharmaceuticals

Domestic appliances (Electro-mechanical) Drugs, medicines & allied products

123

Satia Industries Ltd.

Paper, Books, cards and Wood products

Writing, printing paper

176.29

211.75

35.46

124 1345

Precision Electronics Ltd.

Electronics

Printed circuit boards

25.17

38.68

13.51

125

Om Metals Infraprojects Ltd.

Metal Products

Articles of iron & steel

85.99

114.96

28.97

126

426

Forbes Aquamall Ltd.

Electronics

Water filters

44.10

75.04

30.94

127

Astec Lifesciences Ltd.

Chemicals

55.32

84.55

29.23

128

407

Shakti Pumps (India) Ltd.

Non Electrical Machinery

Pumps

61.16

100.89

39.73

129

Simran Farms Ltd.

Food and Beverage

Poultry

29.01

72.27

43.26

september 2010 | VOL. II | industry 2.0

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Perc

PAT/NET SALES

CHANGE In ROCE

ROCE Rs Crore)

CHANGE in PAT

PAT (Rs Crore)

PBDITA (Rs Crore)

CHANGE IN NET SALES Percentage

2007-08

2008-09

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

19%

18.47

27.84

6.26

11.73

5.47

87%

6.79

13.06

6.27

92%

238%

11.32

42.52

5.67

19.41

13.74

242%

26.09

20.73

-5.36

-21%

10%

16%

57.80

67.05

22.49

27.34

4.85

22%

20.75

24.16

3.41

16%

12%

68%

2.32

2.51

0.36

3.10

2.74

761%

2.2

19.25

17.05

775%

111%

2.50

6.74

1.31

3.02

1.71

131%

8.02

20.64

12.62

157%

42%

3.13

7.57

1.31

5.99

4.68

357%

5.86

23.77

17.91

306%

17%

7.81

15.84

4.75

11.19

6.44

136%

12.36

20.95

8.59

69%

10%

23%

19.09

26.30

9.13

13.43

4.30

47%

21.95

26.8

4.85

22%

10%

25%

23.11

31.08

9.50

14.38

4.88

51%

12.47

15.87

3.4

27%

42%

11.02

16.13

6.34

9.05

2.71

43%

41.41

42.24

0.83

29%

8.13

12.55

2.55

5.73

3.18

125%

8.29

15.99

7.7

93%

39%

18.98

28.42

7.52

10.57

3.05

41%

30.97

-0.97

-3%

36%

5.07

8.72

1.94

4.45

2.51

129%

20.16

44.04

23.88

118%

10%

8.54

19.63

5.37

12.75

7.38

137%

9.01

18.57

9.56

106%

102%

0.61

7.90

0.32

5.96

5.64

1763%

6.55

77.86

71.31

1089%

51%

39%

10.45

19.70

5.46

10.02

4.56

84%

8.31

13.49

5.18

62%

12%

41%

5.69

9.30

2.27

4.36

2.09

92%

11.3

19.16

7.86

70%

40%

18.95

26.91

3.31

6.71

3.40

103%

2.59

5.4

2.81

108%

31%

15.24

21.14

3.50

6.75

3.25

93%

4.13

7.23

3.1

75%

24%

6.03

9.13

3.29

5.51

2.22

67%

21.16

32.81

11.65

55%

133%

2.38

4.73

0.82

2.13

1.31

160%

8.43

15.35

6.92

82%

73%

3.00

6.50

1.01

2.25

1.24

123%

13.83

23.76

9.93

72%

67%

7.74

11.35

4.18

6.89

2.71

65%

51.13

61.49

10.36

20%

17%

16%

53%

6.43

10.15

3.61

5.56

1.95

54%

11.28

15.54

4.26

38%

50%

7.34

10.88

2.30

3.46

1.16

50%

19.76

23.21

3.45

17%

18%

18.01

21.08

10.83

15.12

4.29

40%

14.64

18.34

3.7

25%

36%

10.97

15.73

6.14

9.17

3.03

49%

25.17

29.61

4.44

18%

10%

11%

31%

17.49

27.68

7.35

10.98

3.63

49%

12.17

12.97

0.8

20%

21.42

28.40

4.13

8.30

4.17

101%

6.39

10.02

3.63

57%

54%

1.87

5.17

0.39

4.01

3.62

928%

1.56

13.39

11.83

758%

10%

34%

31.32

43.34

12.99

23.83

10.84

83%

4.09

6.38

2.29

56%

15%

21%

70%

3.51

6.33

2.49

3.91

1.42

57%

25.19

29.78

4.59

18%

53%

14.88

20.80

8.07

10.72

2.65

33%

27.17

28.52

1.35

15%

13%

65%

8.13

14.91

3.90

7.14

3.24

83%

10.56

12.28

1.72

16%

149%

1.22

3.02

0.49

1.41

0.92

188%

5.11

14.23

9.12

178%

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rore

Key/ Hosting

2.0 Top

131

905

132

COMPANY

INDUSTRY SECTOR

INDUSTRIAL ACTIVITY

CHANGE IN NET

NET SALES (Rs Crore)

INDUSTRIAL ACTIVITY

2010 2009 Change

130

INDUSTRY SECTOR

COMPANY

Rank

Manufacturing Companies SMBs

2007-08

2008-09

Rs. Crore

Khemani Distilleries Pvt. Ltd.

Food and Beverage

Indian made foreign liquors

93.72

131.82

38.10

Arcotech Ltd.

Non Ferrous Metals

Non-ferrous metals, nec

27.61

46.67

19.06

Asian Tubes Ltd.

Steel Tubes and Pipes

Tubes & pipes

154.18

210.15

55.97

Solvay Pharma India Ltd.

Drugs and Pharmaceuticals

Drugs, medicines & allied products

170.61

205.35

34.74

133

134

906

Bhagiradha Chemicals & Inds. Ltd.

Chemicals

Chlorpyriphos

83.98

104.48

20.50

135

347

Pradeep Metals Ltd.

Auto Ancillary

Automobile ancillaries

70.47

82.91

12.44

53.09

72.49

19.40

136

319

Shivalik Agro Poly Products Ltd.

Polymers and Plastic Products

Biaxially oriented polypropylene (BOPP) film

137

Tilaknagar Industries Ltd.

Food and Beverage

Indian made foreign liquors

140.98

226.55

85.57

138

140

Aquamall Water Solutions Ltd.

Electronics

Water filters

237.39

251.85

14.46

139

Mittal Corp Ltd.

Ferrous Metals

Alloy steel, nec

122.36

281.31

158.95

140

Tyco Sanmar Ltd.

Non Electrical Machinery

Other valves

122.51

130.85

8.34

Tega Industries Ltd.

Tyres and Tubes and Rubber Products

Rubber & rubber products

124.19

171.06

46.87

I T P Ltd.

Food and Beverage

Tea

29.45

38.19

8.74

C G Lucy Switchgear Ltd.

Generators Transformers Switchgears and Misc Electrical machinery

Switching apparatus

46.51

63.68

17.17

Amrutanjan Health Care Ltd.

Drugs and Pharmaceuticals

Ayurvedic & unani medicaments

71.13

93.36

22.23

Amtek Ring Gears Ltd.

Auto Ancillary

Automobile ancillaries

207.96

233.82

25.86

Anjani Portland Cement Ltd.

Cement

100.25

127.67

27.42

147 1349

N G L Fine-Chem Ltd.

Drugs and Pharmaceuticals

Pharmaceutical products, nec

12.72

24.67

11.95

148

314

Ramdev Food Products Ltd.

Food and Beverage

Other spices

80.07

99.09

19.02

149

144

Jocil Ltd.

Chemicals

Fatty acids

115.36

196.21

80.85

150

Natural Sugar & Allied Inds. Ltd.

Food and Beverage

Sugar

249.32

259.01

9.69

151

Aster Silicates Ltd.

Chemicals

Sodium silicate

15.19

32.85

17.66

152

823

Organon (India) Ltd.

Drugs and Pharmaceuticals

Drug formulations

156.92

166.09

9.17

153

606

Siemens Healthcare Diagnostics Ltd.

Electronics

Medical equipment

54.88

102.25

47.37

154

141

Inox India Ltd.

Metal Products

Reservoirs, tanks & other fabrications

193.85

244.62

50.77

155

Cethar Foodoil Ltd.

Food and Beverage

Rice bran oil

22.04

39.47

17.43

156

760

D F M Foods Ltd.

Food and Beverage

Wheat flour

50.20

78.37

28.17

157

Oswal Industries Ltd.

Ferrous Metals

Steel castings

51.14

62.94

11.80

158

625

Manjushree Technopack Ltd.

Polymers and Plastic Products

Sacks & bags of polyethylene

73.72

106.03

32.31

159

Gem Sugars Ltd.

Food and Beverage

Sugar

92.82

145.01

52.19

Distribution transformers

103.33

134.79

31.46

141

142

143

144

797

145

146

160

132

I M P Powers Ltd.

Generators Transformers Switchgears and Misc Electrical machinery

161

708

I W L India Ltd.

Polymers and Plastic Products

Cellulose adhesive tapes

39.63

57.84

18.21

162

Himalya International Ltd.

Food and Beverage

Mushroom

46.76

62.39

15.63

163

367

Vinayak Steels Limited

Ferrous Metals

Semi-finished Steel

68.14

124.61

56.47

164

630

V M T Spinning Co. Ltd.

Textiles

Cotton yarn

91.12

103.97

12.85

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Perc

PAT/NET SALES

CHANGE In ROCE

ROCE Rs Crore)

CHANGE in PAT

PAT (Rs Crore)

PBDITA (Rs Crore)

CHANGE IN NET SALES Percentage

2007-08

2008-09

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

Rs. Crore

Percentage

2007-08

2008-09

41%

19.16

23.96

9.95

12.80

2.85

29%

14.01

15.55

1.54

11%

10%

69%

2.16

2.92

2.03

5.08

3.05

150%

6.83

14.05

7.22

106%

11%

36%

12.07

17.16

4.81

6.56

1.75

36%

13.58

15.21

1.63

12%

20%

47.71

51.10

27.92

32.37

4.45

16%

33.06

33.02

-0.04

16%

24%

11.18

15.21

6.54

9.57

3.03

46%

16.28

21.51

5.23

32%

18%

4.93

5.66

3.03

6.89

3.86

127%

14.81

26.41

11.6

78%

37%

5.85

8.37

3.60

6.00

2.40

67%

23.22

28.44

5.22

22%

61%

32.19

46.24

16.10

21.38

5.28

33%

30.21

25.23

-4.98

-16%

11%

23.92

31.21

12.66

18.37

5.71

45%

20.9

25.62

4.72

23%

130%

11.41

19.82

5.06

7.06

2.00

40%

13.11

12.26

-0.85

-6%

41.28

55.93

25.68

35.19

9.51

37%

61.06

77.22

16.16

26%

21%

27%

38%

33.23

45.46

16.73

23.13

6.40

38%

34.83

30.86

-3.97

-11%

13%

14%

30%

2.92

6.30

0.59

3.95

3.36

569%

3.1

20.92

17.82

575%

10%

37%

5.86

8.52

3.06

4.99

1.93

63%

14.69

22.81

8.12

55%

31%

10.76

19.40

4.90

11.26

6.36

130%

17.98

18.52

0.54

12%

50.18

60.69

20.06

25.33

5.27

26%

12.99

15.2

2.21

17%

10%

11%

27%

31.97

38.60

16.31

20.67

4.36

27%

23.24

23.45

0.21

16%

94%

1.14

4.35

0.16

1.96

1.80

1125%

1.62

18.71

17.09

1055%

24%

8.21

10.91

3.57

5.37

1.80

50%

20.03

26.84

6.81

34%

70%

17.76

20.75

8.66

9.66

1.00

12%

10.44

10.92

0.48

36.31

52.90

15.27

26.91

11.64

76%

31.38

33.84

2.46

10%

116%

1.72

5.78

0.66

2.55

1.89

286%

7.53

17.18

9.65

128%

28.21

39.65

15.31

24.19

8.88

58%

11.89

18.58

6.69

56%

10%

15%

86%

9.66

13.16

3.41

4.72

1.31

38%

7.34

10.13

2.79

38%

26%

41.38

50.55

24.68

30.22

5.54

22%

38.72

33.62

-5.1

-13%

13%

12%

79%

0.45

1.43

0.24

1.02

0.78

325%

14.33

34.23

19.9

139%

56%

3.77

5.97

0.80

2.10

1.30

163%

4.62

11.03

6.41

139%

23%

11.45

15.87

4.55

8.10

3.55

78%

19.32

25.85

6.53

34%

13%

44%

12.19

17.93

4.52

7.52

3.00

66%

9.99

11.15

1.16

12%

56%

24.38

29.19

4.01

6.70

2.69

67%

3.09

4.61

1.52

49%

30%

17.11

21.14

7.29

10.11

2.82

39%

10.85

12.22

1.37

13%

46%

2.46

4.61

1.06

2.08

1.02

96%

16.75

27.33

10.58

63%

33%

12.75

19.09

8.30

13.51

5.21

63%

15.07

17.07

13%

18%

22%

83%

7.34

12.03

2.40

3.63

1.23

51%

10.72

12.05

1.33

12%

14%

17.47

23.37

8.44

14.07

5.63

67%

9.38

14.12

4.74

51%

14%

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2010 2009 Change

COMPANY

INDUSTRY SECTOR

INDUSTRIAL ACTIVITY

CHANGE IN NET

NET SALES (Rs Crore)

INDUSTRIAL ACTIVITY

INDUSTRY SECTOR

COMPANY

Rank

Manufacturing Companies SMBs

2007-08

2008-09

Rs. Crore

Advance Power Display Systems Ltd.

Generators Transformers Switchgears and Misc Electrical machinery

Static coverters

148.12

172.38

24.26

Filatex Fashions Ltd.

Textiles

Knitted / crocheted fabrics

10.12

38.71

28.59

Hab Pharmaceuticals & Research Ltd.

Drugs and Pharmaceuticals

Drug formulations

21.50

31.66

10.16

168

Bharat Pumps & Compressors Ltd.

Non Electrical Machinery

Compressors

177.54

227.45

49.91

169

956

Keventer Agro Ltd.

Food and Beverage

Fruit juice

115.46

123.11

7.65

170

Medley Pharmaceuticals Ltd.

Drugs and Pharmaceuticals

Drug formulations

166.60

186.32

19.72

171

Lincoln Helios (India) Ltd.

Non Electrical Machinery

Industrial machinery

96.25

112.82

16.57

172

Elofic Industries Ltd.

Auto Ancillary

Automotive filters

71.70

81.33

9.63

173

498

Sunrise Containers Ltd.

Polymers and Plastic Products

Plastic bottles

99.55

128.10

28.55

Cartons, boxes, cases, etc.

61.67

81.01

19.34

165

166

335

167

174

527

K C L Ltd.

Paper, Books, cards and Wood products

175

312

Kaveri Seed Co. Ltd.

Food and Beverage

Agriseed

98.27

123.90

25.63

176

369

Unique Organics Ltd.

Food and Beverage

Spices & Condiments

20.70

36.64

15.94

177

I T C Filtrona Ltd.

Food and Beverage

Cigarette filter rods

85.08

100.80

15.72

178

459

India Carbon Ltd.

Petroleum Products

Petroleum coke

113.86

139.81

25.95

Ipisteel Ltd.

Ferrous Metals

Bars & rods

37.95

51.40

13.45

Lubi Electricals Ltd.

Electronics

Miscellaneous electronic equipment

85.57

101.34

15.77

Tagros Chemicals India Ltd.

Chemicals

Pesticides

127.29

151.57

24.28

Mohan Fibre Products Ltd.

Paper, Books, cards and Wood products

Filter blocks, slabs & plates of paper pulp

20.54

27.31

6.77

Hitech Plast Ltd.

Polymers and Plastic Products

Reservoirs, tanks, etc.

106.86

135.60

28.74

C T R Manufacturing Inds. Ltd.

Generators Transformers Switchgears and Misc Electrical machinery

On load tap changing gears

72.42

90.93

18.51

179 1064 180

641

181

182

183

324

184

421

185

Zydus Animal Health Ltd.

Drugs and Pharmaceuticals

Antibiotics

95.35

107.49

12.14

186

Raptakos, Brett & Co. Ltd.

Drugs and Pharmaceuticals

Drug formulations

199.89

229.75

29.86

187

S D Fine Chem Ltd.

Chemicals

Organic chemicals

51.60

66.57

14.97

188 1293

Gujarat Borosil Ltd.

Glass, Ceramics & Refractories

Glass & glass wares

84.57

95.16

10.59

189

543

Natraj Proteins Ltd.

Food and Beverage

Oil cakes & meals

160.23

166.60

6.37

190

142

Eimco Elecon (India) Ltd.

Automobiles

Mining machinery

120.20

148.28

28.08

191

346

Simplex Castings Ltd.

Ferrous Metals

Castings

149.83

174.98

25.15

192

Brindavan Agro Inds. Pvt. Ltd.

Food and Beverage

Mineral waters

51.75

67.60

15.85

193

274

Polyplex Corporation Ltd.

Polymers and Plastic Products

Polyester film

209.75

242.91

33.16

Puneet Resins Ltd.

Rubber & rubber products

12.42

24.51

12.09

Paper

83.91

114.37

30.46

194

633

195

Laxmi Board & Paper Mills Ltd.

Tyres and Tubes and Rubber Products Paper, Books, cards and Wood products

196

Anupam Industries Ltd.

Automobiles

EOT cranes

126.19

204.11

77.92

197

504

Binani Industries Ltd.

Non Ferrous Metals

Zinc, unwrought

26.75

48.23

21.48

198

575

Mahindra Composites Ltd.

Polymers and Plastic Products