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A 99 MEDIA PUBLICATION
VOLUME 01
ISSUE 04
FEBRUARY 2014
PRICE 100
OPINION
A KEY GROWTH DRIVER FOR INDIA
INDIAN INDUSTRY IS GRAPPLING WITH LABOUR RELATED MATTERS
Ravichandran Purushothaman President, Danfoss Industries
Pg 14
Varun Vijay Rao Managing Director, Actuant India
Y. Srinivas Reddy Managing Director, Bevcon
Viraj Naidu Managing Director DISA India
SUPPLY CHAIN
GREAT DEMAND FOR VALUE-ADDED SERVICES
INTERIM BUDGE T 2014-15 OKAYED BY
THE INDUSTRY ASSOCIATIONS
MOST SEGMENTS OF THE LOGISTICS INDUSTRY HAVE LOW LEVERAGE Pg 38
Mahendra Singhi Group CEO Dalmia Bharat Cement
MANUFACTURING SECTOR HAS A LITTLE TO CHEER UP
editorial Volume 01 | Issue 04 | FEBRuary 2014
Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh Editorial Group Editor: R Giridhar Managing Editor: P K Chatterjee (PK) Design Sr. Creative Director: Jayan K Narayanan Sr. Art Director: Anil VK Associate Art Director: Anil T Sr. Visualisers: Manav Sachdev, Shigil Narayanan & Sristi Maurya Visualiser: NV Baiju Sr. Designers: Haridas Balan, Manoj Kumar VP, Charu Dwivedi, Peterson PJ & Dinesh Devgan Designers: Pradeep G Nair & Vikas Sharma ONLINE & MARCOM DESIGN Associate Art Director: Shokeen Saifi Sr.Designer: Rahul Babu Web Designer: Om Prakash PHOTOGRAPHY Chief Photographer: Subhojit Paul Sr. Photographer: Jiten Gandhi Sales & Marketing Vice President: Naveen Chand Singh (09901300772) National Manager - Events & Special Projects: Arjun Sawhney (09880436623) National Manager - Print & Online: Rajesh Kandhari (09811140424) Product Manager: Siddhant Raizada (09873555231) GM (South & West): Vinodh Kaliappan (09740714817) Regional Mgr. (North): Vipin Yadav (09999885515) Regional Mgr. (South) : Anshu Kumar (09591455661) Production & Logistics Sr. GM - Operations: Shivshankar M Hiremath Manager - Operations: Rakesh Upadhyay Assistant Production Manager: Vilas Mhatre Ad Coordination: Kishan Singh Assistant Manager - Logistics: Vijay Menon Executive - Logistics: MP Singh, Mohamed Ansari & Nilesh Shiravadekar office address Nine Dot Nine Interactive Pvt Ltd Office No. B201-B202, Arjun Centre B Wing, Station Road,Govandi (East), Mumbai 400088. Board line: 91 22 67899666 Fax: 91 22 67899667 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 For any customer queries and assistance, contact help@9dot9.in Printed and published by Kanak Ghosh for Nine Dot Nine Interactive Pvt Ltd A-262, 2nd Floor, Defence Colony New Delhi-110024 Board line: 91 22 67899666 Fax: 91 22 67899667 Editor: Anuradha Das Mathur Plot No. 725 GES, Shirvane, Nerul, Navi Mumbai 400706. Printed at Tara Art Printers Pvt ltd. A-46-47, Sector-5, NOIDA (U.P.) 201301 www.industry20.com
Managing
Culture Shock
R
ecently I met a young chap, who has joined a multinational company with a few years’ background in some Indian SMEs. In course of our discussion, he revealed that earlier he never had any fixed time for lunch, and mostly he was alone to go out for the same. Now, it is a big problem for him to regularly go for lunch at a fixed time with his boss and other team members. It’s worth mentioning here, in the new organisation, food items are highly subsidised. In Indian situation, almost every newcomer to a big company bears a background of one or more small companies. In general, the culture varies from organisation to organisation – and there is a big difference between an average Indian SME and a big national or multinational firm. Quite naturally, when a person enters such a big organisation with his/her SME mindset, he feels culturally challenged, which is commonly called a ‘culture shock.’ A ‘culture shock’ is nothing but the impact that a person feels when he/she enters a new culture, which is very different from what he/she is accustomed to. This leads to an impaired ability to function efficiently. There are dif-
industry 2.0
P. K. Chatterjee (PK) editor@industry20.com
ferent reasons behind such a shock. Most commonly the reason is sudden absence of the familiar or comforting characteristics of one’s workplace. Also, the new entrant may feel that there exists an environment, which is irrational or inscrutable or hostile in nature, because his/her mental set up is neither experienced to and nor even prepared to accept the new culture. Sometimes lack of ability in any form (say digital, financial or social) also gives rise to such a situation. Whatever is the cause behind such a shock; from an organisation’s point of view it affects productivity, and from the employee’s end it affects his/ her performance (which may even put his/her career at stake). So, every organisation should take steps to prevent such a situation. A candidate’s background check before appointment often indicates the future possibility of such a shock. The issues of cultural adjustment are often alleviated through good training sessions. Staff activities like get together or picnic or nature study or compulsory involvement in CSR activities also help in softening the issues of culture shock. More than indoor efforts, predesigned out-of-the-gate programmes often work well.
- technology management for decision-makers | february 2014
1
contents departments Editorial....................................................01 Advertisers’ Index................................... 02
Interim
Industry Update.......................................03
Budget 2014-15
Market Scenario.................................09, 11 Techwatch................................................20 Product Gallery....................................... 48 Business Index........................................ 48
cover story
advertisers’ index
Interim Budget reactions reflect a tune of acceptance under a no-alternative situation. It is obvious that many major areas have lacked due focus. However, till the actual union budget is declared by the new government, some segments of the manufacturing industry will enjoy a breathing space.
22
Omron...................................................IFC
Cover Design: Peterson PJ
Accenture.............................................. BC
Bry Air Asia.............................................29 Everest Pressure & Vacuum Systems............................................... IBC
FACTS & FIGURES
Quality & Innovation
Control & Automation
07 Changing Employment Trend
32 5 Advantages Of Ceramic Bearings
34 Advantages Of Pre-integrated Sensor Elements
Steep rise in contract workers by 39% in 2013 is posing serious risks...
Opinion 14 A Key Growth Driver For India
India has not been able to fully leverage the opportunities provided by the dynamics of globalisation...
Promotion & Dev. 18 Supporting SMEs
Initiative to promote innovative ideas and sharpen entrepreneurship acumens is yielding good results...
In manufacturing industry (especially in F&B manufacturing), full ceramic bearings and ceramic hybrid bearings offer some advantages to overcome the challenges like controlling costs and safety (food safety)...
33 A Joint Effort
The Mahindra five-speed autoSHIFT transmission incorporates some extremely advanced technologies, which have resulted from the collaboration with Ricardo...
Design & Optimisation 28 Saving Energy
Researchers have developed a new method for separating gases...
30 A High-Tech Solution
Mahle has developed a new solution for valve cooling that is low-cost as well as highly effective...
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- technology management for decision-makers
Pre-integrated sensor solutions offered by Honeywell are becoming a popular and increasingly cost-effective alternative to the traditional sensor selection and integration process...
Supply Chain 38 Margin Cushion From Valueadded Services
Attractive business opportunities are arising from growing demand for specialised logistics services...
40 WAY FORWARD Organisations can no longer continue to use the old approaches,..
44 Marching Toward an Integrated Industry
Bosch has been awarded the Association of German Car Manufacturers’ Logistics Award for complete virtualisation…
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industry update Essar Ports achieves another milestone
MV Kiran, the largest dry bulk vessel in Indian fleet, has berthed at Essar Bulk Terminal, Hazira.
M
V Kiran, a 175,000 tonne DWT vessel, the largest dry bulk vessel in Indian fleet, has berthed at Essar Bulk Terminal, Hazira to discharge iron ore pellets. The vessel, owned by Essar Shipping, has an overall length
Intergraph takes over GT STRUDL
I
ntergraph Process, Power & Marine, part of Hexagon, has acquired GT STRUDL, a Computer-Aided Structural Engineering (CAE) software system, from the Georgia Tech Research Corporation of Atlanta. As part of the acquisition, the 10 skilled staff and management team members of the Computer-Aided Structural Engineering Center have joined Intergraph. GT STRUDL is widely used in a variety of industries – such as nuclear power and nuclear defence industries, conventional power generation, general plant structures, offshore structures, marine applications, general civil engineering and infrastructure structures. In the US nuclear industry, GT STRUDL is widely used by major companies in the design, maintenance and upgrading.
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of 281m and beam of 45m, making it the largest ship that the terminal has handled till date. The handling of a ship of this size highlights the capability of Essar Bulk Terminal Hazira, to handle the largest
of bulk carriers. It also highlights the operational efficiency of the terminal, and the capability of the operating team. Speaking on the occasion, Capt. Subhas Das, CEO, Essar Bulk Terminal, Hazira, said, “We deployed powerful tugs, and ensured adequate under keel clearance, accurate judgment of vessel’s engine and steering capabilities.” “We congratulate the pilots and the terminal team, which brought in the largest ship we have handled till date,” he added. Rajiv Agarwal, Managing Director & CEO, Essar Ports, said, “We are proud of our team at Hazira, which is now handling some of the largest bulk carriers. Our focus is on operational excellence and safety of operations, and our teams on the ground are continuously striving towards it. My congratulations to the EBTL Hazira team on this achievement”.
Perkins appoints global sales head
P
erkins has appoint“Across the sales and ed Bill Giunta as marketing team, we’re the General Manager, acutely focused on our Global Sales and Marcustomers’ needs. Our keting, effective from customers are our priorFebruary 1, 2014. ity; and over the coming Bill; who was in weeks and months I’m Caterpillar’s Electric looking forward to meetPower Division based ing and spending time in Georgia, USA as a with our valued OEMs commercial manager; in India and the wider is relocating to PeterAsia region, as we conborough, UK, to take up Bill Giunta, General Manager, Global tinue to raise awareness Sales and Marketing, Perkins his new role. not only of the Perkins “I’m delighted to be brand, but the real leading the global sales and marketing benefits our dependable engine range team during an exciting time for the delivers for end users,” he continued. Perkins brand. We’re working closer With commercial responsibility for than ever before with our customers marketing, branding, sales and product around the world, supporting both the support for the Perkins engine brand, integration of our machines into their Bill’s extensive, global customer-facing applications, as well as on collaborative experience in field service, sales and marketing activities, to ensure we’re marketing, make him particularly suitall successful in today’s competitive ed to the role. Exact date of his arrival marketplace,” said Bill. in India will be announced soon.
industry 2.0
- technology management for decision-makers | february 2014
3
industry update German machine tool industry found low order booking
I
n the fourth quarter of 2013, order bookings in the German machine tool industry fell by 6% compared to the final quarter of 2012. Domestic orders were up by 3%, while export orders were 11% below the previous year’s figure. For the year 2013 as a whole, there is a minus of 6%, with domestic orders down by 7%, and export bookings by 6%. “So this was a rather unspectacular end to the year for the German machine tool industry,” comments Dr.Wilfried Schäfer, Executive Director of the sectoral organisation VDW (German Machine Tool Builders’ Association) in Frankfurt. The year’s final quarter saw a minor setback in regard to a stable uptrend in order bookings.
FW offers new technology
F
oster Wheeler’s (FW’s) Global Power Group is now offering a new turn-key environmentally responsible ash solution for international clients operating the company’s Circulating Fluidized-bed (CFB) steam generators. Under a newly signed license and cooperation agreements with LA Ash Products and Services, FW has expanded its suite of CFB-related products – by offering current and future international CFB clients an environmentally sound method for converting ash into a usable product for stabilisation and remediation of soils and land areas or as an aggregate or fill for road and civil construction. The new offering provides international CFB owners and operators with an alternative to disposing of the ash in landfills. Under the new offering, FW, LA Ash or its local partners would condition the ash for specific uses using the proprietary process developed by LA Ash – and sell it.
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Dr. Wilfried Schäfer, Executive Director of the sectoral organisation VDW
Nonetheless, orders in the second half of 2013 showed a definite plus. Forming technology, the guarantor of success for the development of production output last year, lost 25% of its order bookings in the year’s fourth quarter. “This category is taking a short breather, and the big projects of the automotive industry, which is the main customer grouping, have been completed for the time being”, says Schäfer. In 2013 as a whole, order bookings for forming technology were down by 2%. Order bookings for metal-cutting technology fell by 8%. In 2014, the sector is expecting order bookings to rise again, by around 10%, set to come in equal proportions from Germany and abroad.
BASF inaugurates lab for battery materials
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ASF has inaugurated its Research and Development Laboratory and Application Technology Center for battery materials in Amagasaki, Japan. The facility, located in the Amagasaki Research Incubation Center (ARIC), is BASF’s 1st combined battery materials R&D and application technolBASF inaugurates its Research and Development Laboratory ogy operation in Asia Pacific. and Application Technology Center for battery materials in “The new Amagasaki batAmagasaki, Japan. tery materials lab will enable us to extend our successful R&D networld. In addition, the Amagasaki labowork, with research institutes and the ratory will run development programs battery manufacturing industry into jointly with Japanese customers. This Japan. The addition of Amagasaki to will allow BASF to serve customers’ this global network demonstrates our needs in Japan more quickly. ongoing commitment to advancing the Dr. Joerg-Christian Steck, Repbattery materials industry,” said Dr. resentative Director & President of Peter Schuhmacher, President, Process BASF Japan, said, “Japan is a leader Research and Chemical Eng., at BASF. in battery manufacturing and developThe Amagasaki laboratory will focus ment. Amagasaki, in the Kansai area, on developing electrolytes and elecis the ideal location for the new battery trode materials for high-performance materials laboratory. Our Research & lithium ion batteries as part of BASF’s Development presence in Japan brings global R&D network, leveraging us closer to our customers, enabling us technology platforms from around the to better serve their needs.”
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industry update SKF expands maintenance service network and analysis; utilising SKF Reliability Systems hardware, software and databases; and recommendations for optimising the performance of plant equipment, offering a corrective action plan designed to improve machinery performance. Sudhir Rege, Director, Regional Sales and Services, South Asia, SKF said, “We are pleased to appoint Indo Bearing Traders as an SKF Certified Maintenance Partner. Indo Bearing Traders is receiving the SKF CMP certificate. CMP is a unique business ndo Bearing Traders in Mumbai, model in the industry, providing means Maharashtra; an SKF Authorized for distributors to offer more valueDistributor since 1987; has earned the added services to customers. status of SKF Certified Maintenance “We want to work closely with Partner (SKF CMP), allowing Indo the customer,” said Ashish Tahiliani, Bearing Traders (Andheri) to provide Partner, Indo Bearing Traders. “This machine reliability services through service enables us to work at the shop the use of information and technology floor level and understand areas – that are proprietary to SKF. where the customer needs support and As an SKF CMP, the company is thus add value to the customer. CMP now able to offer equipment assessProgram is an excellent way of becomments; identifying key condition moniing a solution provider and not merely toring data points; data collection a product supplier,” he added.
Chalasani joins Punj Lloyd
J
. P. Chalasani has taken over as the Director and Group CEO, Punj Lloyd. Joining the new company from Reliance Power, Chalasani will work closely with the Chairman, Atul Punj, and lead the entire management team from the company’s corporate headquarters in Gurgaon. Commenting on this latest development, Punj, said “This is a signifi-
I
IR launches next generation of compressor coolant technology
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ngersoll Rand has released Ultra EL, a high-performance lubricant incorporating the latest performanceadditive technologies. It will provide various performance benefits when compared to ultra coolant and other fluids available in the market today. It is a high-performance compressor coolant based on a blend of PAG and POE base – with features like longevity and service life of 16000 hours, superior wear protection, robust corrosion inhibition, improved performance in the presence of air & water, advanced lubri-
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cant solution and biodegradability according to OECD-301B test methods. The new generation of coolant technology for rotary screw air compressors has been developed extensively over a period of three years – during which every possible aspect was subjected to rigorous laboratory analysis, controlled compressor endurance tests, and field-trials. The main goal of the development work was to produce a product that would last up to 16,000 hours in a rotary screw air compressor, twice the expected life of similar products available today.
industry 2.0
J. P. Chalasani, Director and Group CEO, Punj Lloyd
cant development for Punj Lloyd. J P Chalasani’s proficiency in handling challenging assignments is well established and I am confident that his experience and expertise will augment the company’s global operations and increase shareholder value.” A mechanical engineer, J P Chalasani brings with him a rich experience of 30 years in the Indian infrastructure industry, transcending a mix of both public and private sectors of India. Starting his career as a trainee engineer with NTPC, his outstanding performance, leadership and project management skills resulted in his progressive rise to assume critical portfolios. He was instrumental in Reliance Power becoming the largest market cap company in the private sector in power and in starting India’s largest coal mine operations in the shortest possible time.
- technology management for decision-makers | february 2014
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industry update Rajasthan to host world’s largest solar project
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n Ultra Mega Solar Power Project (UMSPP) with a cumulative capacity of 4,000 MW will be set up in Rajasthan in the Sambhar Salts Limited (SSL), area close to Sambhar Lake, about 75 kilometre from Jaipur. Significantly, with the commissionong of this plant and commercial utilisation of the harvested energy therein, this would become the largest single location solar electricity generation project in the world. A Joint Venture Company (JVC) will develop the solar power project on the surplus land available with SSL in Sambhar, with equity participation from Bharat Heavy Electricals Limited (26%), Solar Energy Corporation of India (23%), Hindustan Salts Limited (16%), POWERGRID (16%), Satluj Jal Vidyut Nigam Limited (16%) and Rajasthan Electronics and Instruments Limited (3%). The plant will have equipment supplied by BHEL, power evacuation by POWERGRID, sale of electricity by SECI, O&M by REIL and project management by SJVNL. It’ll be set up in 2 phases over a period of 7 years.
CG’s new pumps are SMS savvy
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vantha Group company Crompton (CG) has launched a wide range of energy efficient pumps and SMS savvy devices to operate pumps for various applications. Pumps generally consume huge amounts of electrical energy, and hence present a tremendous opportunity for energy savings. Today, discerning consumers are displaying a preference for energy efficient pumps. The intelligent microchip technology embedded in the GSM (Global System for Mobile Communications) Pump Controller and the Electronic Control Panels allow these pumps to be switched ‘on’ and ‘off’ remotely, through a mobile phone call or an SMS (Short Message Service). They can also be programmed to send an SMS alert to the customers’ mobile phones informing of any shutdown or power failure. Other value-added features are a voltage and current display and a protection from short circuits and overload. For the commercial and industrial segment, Crompton launched the vertical and horizontal multistage pumps, suitable for high rise buildings. These pumps can raise water up to a height of 265 meters, at the desired pressure. The pumps are fortified with pressure boosters to maintain water pressure at the same level irrespective of the height at which the outlet is located.
Crompton’s latest energy efficient pumps to fast track huge energy savings
Commenting on the launch, Crompton’s Executive VP and President, Consumer Business, Ash Gupta, said, “We are constantly researching with materials and new designs to increase the energy efficiency and lifespan of our products. The latest range of our pumps combines the elements of design, construction material and microchip technology to give our customers a world class, energy efficient, cost effective and reliable product.”
Aemetis commissions biodiesel distillation unit at Indian plant
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emetis’ 50 million gallon per year capacity biodiesel and refined glycerin production facility, in Kakinada; India, has been upgraded to produce high-quality distilled biodiesel. The Aemetis plant was built in 2008 using advanced technology to produce biodiesel and refined glycerin using large volumes of lower-cost, non-food byproducts from the edible oil industry as feedstock to supply the biofuel, pharmaceutical, and industrial markets. “The new distillation production unit is
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fully commissioned and the facility now produces biodiesel meeting or exceeding the highest standards for biodiesel quality worldwide,” informed Sanjeev Gupta, MD of Aemetis’ subsidiary in India, Universal Biofuels. The Aemetis plant is the only distilled biodiesel producer in India and is one of the only plants in Asia capable of producing large supplies of biodiesel that meet the rigorous European Union (ISCC) standards. During 2013, approx. $20 million of biodiesel was
- technology management for decision-makers
produced by the Aemetis plant in India, and delivered to customers in Europe. “Recently, the EU adopted 5-year, anti-dumping tariffs against Argentina and Indonesia due to large subsidies provided to their local producers. Since an anti-dumping tariff already exists against US biodiesel imports, European fuel customers are now focused on Malaysia and India as the remaining low-cost biodiesel suppliers to Europe,” stated Eric McAfee, Chairman and CEO of Aemetis.
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facts & figures
Changing
Employment Trend Steep rise in contract workers by 39% than regular workers in sectors like automobile, manufacturing, telecom, IT, BPO, FMCG, healthcare, education etc in 2013, posing serious risks to worker morale and corporate growth ‒ finds a recent ASSOCHAM survey.
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ecently, Associated Chambers of Commerce and Industry of India (ASSOCHAM), under the aegis of its Social Development Foundation on “Steep Rise of Permanently Temporary Workers – India’s workforce goes casual,” conducted a countrywide survey. It has revealed that in the last one year, the number of contract workers grew by 39%, while growth in the number of regular workers nearly halved to 25%. The recent statistics are sad and shocking, as per the government’s strict norms for contract labour. The majority of private companies are violating the labour laws. The high level of contract staff means that labour laws are hurting formal and permanent employability. There are many social security benefits that are not reaching workers – especially with the contractualisation of the workforce, says D. S. Rawat, Secretary General, ASSOCHAM. The telecom sector scores the worst with up to 60% of its staff on contract. There has been a sharp rise in contract workers in automobile (56%) and other industry sectors like education (54%), manufacturing (52%), FMCG (51%), IT, BPO jobs (42%), hospitality & travel (35%), pharma and healthcare (32%) in India. Contract labour is increasingly being used in smaller and larger Indian companies – as well as multinationals, reveals the survey. Major metropolitan cities in which respondents were interviewed include Delhi-NCR, Mumbai, Ahemdabad, Cochin, Bengaluru, Hyderabad, Indore, Patna, Pune, Chandigarh and Dehradun, and it was observed that there has been a surprising rise in the demand of contract worker than the regular workers. Similar findings were observed in Chennai and Orissa too. ASSOCHAM polled nearly 250 human resources and hiring managers about their outlook for hir-
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There is tremendous increase in the number of contract employees in the four five years.
Contract labours are on the rise Year
Percentage of rise
2010
22%
2011
28%
2012
32%
2013
39%
ing contract and temporary workers. It shows that there is a sharp rise in the number of contract employees and the number of businesses hiring contract staff. While releasing the survey, Rawat said, “Apart from being paid less than regular employees on corporate payrolls doing similar tasks, contract workers have virtually no job security and no benefits like medical aid, gratuity, provident fund, educational funds, pension and health insurance and leaves benefits.”
Work Experience Of The Survey Respondents 4% 3%
9%
9%
12% 49%
14% n Less than 1 yr n 1-5 yrs n 6-19 yrs n 11-15 yrs n 16-20 yrs n 21-25 yrs n above 25 yrs
industry 2.0
Almost 49% of the survey respondents have work experience (contract) of 1-5 years. The survey further discloses that regular workers are earning more than three times that the contract workers do for the same job.
- technology management for decision-makers | february 2014
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facts & figures Sectors (Survey Respondents Belong To) 8%
17%
2% 2% 2% 3% 3% 4%
11%
4% 5% 5%
9% 5% 8%
6%
6%
n IT/ITeS n Financial Services n Engineers n Telecom n Market Research/KPO n Media n Management n FMCG n Infrastructure n Power n Real Estate n Food & beverages n Education n Advertising n Manufacturing n Texttiles n Others*
Age Group Of The Survey Respondents 2%
Around 55% of the survey respondents were under the age bracket of 20-29 years, followed by 30-39 years (26%), 40-49 years (16%), 50-59 years (2%) and 60-69 years (approx. 1%).
1%
16%
55%
26%
n Age 20-29 yrs n Age 30-39 yrs n Age 40-49 yrs n Age 50-59 yrs n Age 60-69 yrs
“Contract labours are employed across several sectors and industries. It is no more confined to worker level jobs, rather there are scientists, doctors, business managers and chartered accountants working on the roles of a labour contractor”, said the Secretary General, ASSOCHAM. In the profit making multinational manufacturing organisations, more than 50% of the worker
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- technology management for decision-makers
category employees are hired through labour contractors. Many of the automobile companies have more number of contract employees and less number of regular employees. Between 2008-09 and 2012-13, the number of contract workers grew by 39%, while growth in the number of regular workers was nearly halved to 25%. Besides, the salary given to contract workers is usually much lower, in some cases half or less, than that of the salary received by the regular employees of the company, mentioned the survey. The IT industry in India generates employment to the order of 3 lakh new jobs each year, yet the number of people graduating from the engineering colleges and possibly looking for IT jobs is about 7.5 lakh. This creates a class of desperate jobseekers looking for work, who often fall prey to the IT job scams and also would be willing to take up the contract work. It is hoped that better awareness of the provisions of the contract labour act, and better implementation by the government, would help in curbing the disturbing trend of the increase of such jobs and the exploitation of job seekers who sign on for them, adds the survey. A little over 200 employees were also selected from each city on an average. Delhi ranks first in hiring contact workers followed by Mumbai (second), Bengaluru (third) Chandigarh (fourth), Kolkata (fifth), Ahmedabad (sixth) and Dehradun (seventh), says the survey. After IT/ITeS sector, contribution of the survey respondents from financial services is 11%. It includes employees engaged in banking sector, stock brokerage house, insurance sector, financial consultancy and chartered accountants. Employees working in engineering and telecom sector contributed 9 and 8% respectively in the questionnaire. Nearly 6% of the employees belonged to market research/KPO and media background each. Management, FMCG and infrastructure sector employees’ share is 5 per cent each, in the total survey. Respondents from power and real estate sector contributed 4% each. Employees from education and food& beverages sector provided a share of 3% each. Advertising, manufacturing and textiles employees offered a share of 2% each in the survey results. The survey targeted corporate employees from 18 broad sectors, with maximum share contributed by employees from IT/ ITes sector (17%). *Others include employees from those sectors that have contributed >= 1% share in the survey (consumer durable, construction, energy, healthcare, steel, HR and Miscellaneous.)
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market scenario
Moderate Growth In Demand During the next five years, global benzene demand is forecast to grow at just under three per cent a year, reaching 50 million metric tons by 2018.
G
lobal demand for benzene, an aromatic hydrocarbon and one of the primary chemical building blocks for the petrochemical industry, increased to 43.7 million metric tons in 2013, an increase of 2.8% above its demand in 2012. By comparison, the World Gross Domestic Product (WGDP) for the period increased by 2.5%, indicating that demand for benzene, at 1.12 times WGDP, was a welcome showing for the product, which is often considered an economic bell-weather due to its applications across industries, particularly after benzene’s dismal demand growth performance in 2011 and 2012. “While the news for benzene demand was good from a global perspective, demand strength for benzene was not spread evenly
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across the globe, and the high growth regions of Asia carried the other regions to achieve the positive showing,” said Chris McCloskey, Director, Aromatics at IHS Chemical and one of the Principal Authors of the analytical report. According to the study from IHS, “In fact, while the world as a whole and the high growth regions of Asia and the Middle East have recovered from the 2008 global financial crisis, other regions are still in the process of making structural changes, and have not yet recovered to precrisis demand levels.” Benzene consumers in several regions benefited from the strong recovery in Asia, primarily those in regions that are structurally short on benzene – but also have an existing ben-
zene derivative capacity base and an advantaged energy cost position. These regions imported benzene from Asia and exported benzene derivatives. “Benzene is a an important building block chemical for the petrochemical industry, its derivatives are used broadly in the construction, automotive, apparel, appliance, computer, electronics, durable and nondurable goods, packaging and other industries to make our lives easier, more productive and more comfortable. As a result, its growth rate is a reflection of the health of the general economy,” said McCloskey. Originally produced as a byproduct of coke production for the steel industry, today benzene is mainly produced as a by-product of refinery and steam cracker
industry 2.0
- technology management for decision-makers | february 2014
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market scenario Major commodity chemicals and polymers derived from benzene Ethylbenzene
Styrene
Polycarbonates
Acetone Cumene
Polystyrenes
Bisphenol A Epoxy resins Phenol
Benzene Cyclohexane
Phenolic resins
Adipic acid
Nylon 6-6
Captrolactam
Nylon 6 Courtesy: wikipedia
Aniline
Chlorobenzenes
operations. Since benzene is primarily produced as a by-product in the production of gasoline, ethylene and paraxylene, its supply is driven by demand for these products rather than by demand for benzene. It is used primarily for the production of styrene, cumene, phenol, cyclohexane, nitrobenzene and other important industrial chemicals. In recent years, benzene capacity has been added mainly in Asia and the Middle East. This trend is expected to continue in the coming years ‒ as these regions primarily constitute places where naphtha crackers and refineries are being built. However, some light-feed crackers are being planned in the United States to leverage advantaged ethane and natural
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gas from increased production of shale oil and shale gas. The report presented by IHS noted that increased production as well as consumption of shale oil and shale gas has resulted in ethylene producers shifting their feed stock slates from naphtha to ethane during the past several years. This shift in feed slates has, in turn, driven the decline or fall in the benzene production rate in North America. McCloskey stated, “As developing countries in Asia continue to make swift progress in increasing living standards for their sizable populations, market development, construction and demand growth for benzene and its numerous derivatives will continue at a strong pace. The more mature markets of North
- technology management for decision-makers
America and West Europe will benefit from Asian growth by using their existing capacity base to process excess benzene from Asia and South America into benzene derivatives, and in the case of North America, leveraging its advantaged energy cost position. The Middle East benefits from Asian growth by being a low-cost provider of raw materials, including naphtha for cracking and reforming, and as an exporter of benzene and derivatives to Atlantic and Pacific Basins.” According to the report, production of ethylbenzene/styrene, cumene/phenol, cyclohexane and nitrobenzene will continue to consume more than 90% of the benzene produced in the coming years, and will have a combined annual growth rate of 3% during the study period.
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market scenario
A Persuasive
Bounce-back According to the IHS’ recent report “Solid Q3 Industrial Growth Improves 2013 Forecast,” the industrial electronics segment is faring well now.
Photo Credit: Berthold Leibinger Stiftung. Fraunhofer Institute for Laser Technology ILT
G
lobal industrial electronics chip revenue for 2013 amounted to $33.7 billion, a solid 11% rise from $30.4 billion in 2012. After final figures are confirmed for the fourth quarter, the double-digit increase expected in 2013 will show that the market recovered from the 5% loss of 2012. Growth will continue in the next few years, and industrial-related semiconductor revenue will reach some $45.0 billion by 2018 (refer the attached figure on next page). “The market’s persuasive bounceback is due to a strengthening global economy, coupled with higher purchasing confidence across all geographical regions. While the field Diode-pumped INNOSLAB laser for medical and industrial precision machining may not sound as sexy or attention-grabbing as some of the more popular markets around, like wireless or consumer, Those nations included Germany, France, Switzerthere is no underestimating the power or sheer land, Sweden, Italy and Finland. breadth of its applications, ranging from home The industry on the whole continued to pick automation to the medical field, to energy, to aeroup steam during the third quarter after demand nautics and military purposes, and much more,” started improving in the second. Overall, the turnasaid Robbie Galoso, Principal Analyst for Industrial round for the year sets the stage for a robust 2014, Electronics at IHS. Galoso said, with annual revenue forecast to grow In the Americas, led by the U.S., an upturn 9% to $36.8 billion. in the housing market fueled the expansion of industrial electronics usage in the building and Powerhouse segments pull up home control segment. China was another locus weaker performers of growth, with broad-based revenue increases The largest segment in all of industrial electronoccurring in various segments, including medical ics during 2013 was building and home control, electronics as well as factory automation. spurred by a newly resurgent U.S. residential marEven a beleaguered Europe, still disentangling ket. Revenue in 2013 is estimated at $10.1 billion, itself from the recent financial turmoil, was a happy or nearly a third of the industry’s entire takings. contributor, with 13 of its countries figuring among Lighting was a prominent performer, especially the top 20 global industrial electronics markets. in the Light Emitting Diode (LED) sector, as were
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industry 2.0
- technology management for decision-makers | february 2014
11
market scenario security systems used in applications like video surveillance and fire alarms. Also obtaining high marks last year were the military and civil aerospace segment, as well as medical electronics. In the former, a robust commercial avionics sector drove expansion
Billions of US Dollars
Global Revenue Forecast for Industrial Electronics Semiconductors (Billions of US Dollars) 50 45 40 35 30 25 20 15 10 5 0 2011
2012
Source: IHS Technology, February 2014
2013
2014
2015
2016
2017
2018
that compensated for headwinds encountered in the military sphere because of the U.S. federal budget sequestration. In the latter, the diagnostic-therapy-patient monitor market continued to perform well. One other important segment last year was energy generation and distribution, even though third-quarter results were mixed. Here weakness in wind turbines dragged down the stable growth seen in other renewable-energy sectors such as nuclear, thermal, hydro, and oil and gas. Other segments contributing to industrial electronics included test and measurement, still soft in the third quarter; and manufacturing-process automation, which enjoyed enhanced results due to a significant increase in demand from China and the U.S. The top five countries last year in terms of semiconductor design and influence for industrial electronics were the United States, China, Japan, Germany and France. Together the five nations controlled more than 70% of the industrial electronics sphere in 2013.
opinion
A Key
Growth Driver India has not been able to fully leverage the opportunities provided by dynamics of globalisation. The manufacturing sector must demonstrate energetic and faster growth.
For India
By C. V. Suvasan
14
february 2014 | industry 2.0
announced a national manufacturing policy only last year. About 60 per cent of India’s population is engaged in agriculture, although it contributes only 14 per cent to the country’s GDP. A large section of agricultural workers want to shift to manufacturing because of the comparatively higher wages it offers. The share of manufacturing in India’s GDP has stagnated at 15 to 16 per cent since 1980, while the share in Asian economies is
- technology management for decision-makers
as high as 25 to 34 per cent. On the other hand, the services sector in India contributes about 67 per cent. The country’s manufacturing sector has failed to capitalise on huge opportunities, and is facing strong competition from China and other East Asian players. Within the BRICS group, India stands lower in terms of growth in the manufacturing sector. China, whose economic growth was once moving in the same
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Photo Credit: www.photos.com
A
fter flattening out consistently, the Indian economy is looking up to prerecession growth level’s India due to gradual liberalisation policies and a huge population. A robust manufacturing sector is essential for this to take place. However, the World Bank has projected economic growth during 2013-14 at 6 per cent from their earlier estimate of 6.9 per cent. The manufacturing sector has the potential to fuel other secondary and tertiary sectors of the economy. It has a multiplier effect of creating two to three additional jobs in related and allied activities including in services area. Therefore, special focus and a thrust on the sector is integral and fundamental to the inclusive growth plan of the government. Our focus on manufacturing as a key element of economic growth is wanting. This can be gauged from the fact that India
pattern like that of India, is now the hub of global manufacturing. It has trade surplus with almost all the major economies of the world, including India. The Asian giant has managed high growth by concentrating on manufacturing and emerging as the manufacturing capital of the world. China’s manufacturing sector contributes over 40 per cent in its GDP. It has emerged as a preferred destination for manufacturing labour intensive items. Similarly, Brazilian manufacturing is also growing at a faster pace as compared to India. Manufacturing sector contributes about 30 per cent in the Brazilian economy. The same is the case in Russia and South Africa too. According to the union commerce and industry ministry, the increasing gap in sectoral share and productivity of the manufacturing sector between India and these economies indicates that – India has not been able to fully leverage the opportunities provided by the dynamics of globalisation. While the services sector has grown, the manufacturing sector must demonstrate energetic and faster growth. Services sector cannot survive and stand without support of manufacturing. India has a favourable demographic profile with over 60 per cent of population in the working-age group of 15 to 59 years. Over the next decade, India has to create gainful employment opportunities for a large section of its population with varying degrees of skills, expertise and qualifications. The manufacturing sector will have to be the bulwark of this employment creation initiative. The growth of the sector has so far been hampered due to high transaction costs, inadequate infrastructure, rigid labour costs and stringent exit mechanisms.
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Skill development of the younger population On an average, a manufacturing unit has to comply with 70 odd legislations and multiple inspections. Under these legislations, over 100 returns have to be filed every year. The sector is struggling with fundamental challenges like problems related with land acquisition, regulatory issues related to labour, and availability of trained manpower. Continuous fluctuations in the domestic currency too impacts growth of the manufacturing sector. Despite the fact that we have vast tract of land available in the country, industry has to struggle to acquire every inch of the land. Although, the Union Cabinet has cleared the Land Acquisition Bill, the industry has still expressed concerns with regard to it. Business chambers say if the bill gets legislated in its current form, the industry will face obstacles in acquiring multi-crop agricultural land – a move that will impact industrialisation in agriculture-dependent states like Uttar Pradesh, Bihar, West Bengal and others.
Two international steel giants – Arcelor Mittal and Posco – have scrapped projects worth Rs 72,000 crore because of land acquisition problems. You can very well imagine if those were implemented, how many new jobs would have been created in our country. Regulatory issues related to labour and other procedural hurdles are also coming in the way of the manufacturing sector. This restricts entry of young entrepreneurs who want to play an active role in boosting manufacturing. The Indian industry is grappling with labour related matters. Labour unrest is now a daily phenomenon in our country. Absence of adequate skilled manpower in the country also poses a serious challenge in the growth of the manufacturing sector. For this, we need many skill development centres. All efforts to boost the sector will go in vain if the government does not help the industry in terms of providing basic infrastructure like roads, ports, railways and adequate power supply. These are pre-requisite
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- technology management for decision-makers | february 2014
15
opinion ingredients to strengthen the degree, scale and scope of the manufacturing sector. The new National Manufacturing Policy (NMP) seeks to raise share of the manufacturing sector in the GDP to 25 per cent in the next decade. It aims at creating world class infrastructure. It envisages facilitation by the government in infrastructure development and improvement of the business environment through rationalisation and simplification of the regulatory framework. It also proposes to create 100 million jobs by 2020. The government is offering a host of incentives like exemption from capital gains tax and liberalized labour and environmental norms to promote these zones. Besides development of appropriate technologies – especially green technologies for sustainable development, skill development of the younger population are envisaged. The foremost important thing is that the NMP aims at creating large integrated industrial townships – National
Investment and Manufacturing Zones (NIMZs). These will be mega-industrial zones (the biggest one which is coming in Dholera in Gujarat is of the order of 900 sq km) with world-class supporting infrastructure like modern roads, sewage disposal system, testing and certification centres. While the union government will provide funds for the trunk infrastructure like for power grid connections, the state government will take care of adequate water supply and other municipal issues. The government has notified ten such zones in states like Gujarat, Maharashtra and Rajasthan, and has already completed master planning for seven zones. This policy will change the face of Indian industry, and help in making India a manufacturing hub of the world. But how much it will translate? It all depends on the government’s effort to implement this policy, because it needs clear support from all the state
The Indian industry is grappling with labour related matters.
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february 2014 | industry 2.0
- technology management for decision-makers
governments in terms of acquiring land for NIMZs and extension of incentives to local industries in setting up of units. We need at least a dozen of manufacturing hubs in order to create millions of jobs and for inclusive growth in the country. Further, India’s continuous bilateral engagements in terms of free trade agreements or market opening pacts with different countries are also yielding fruits for the sector. Last year, we implemented comprehensive FTAs with countries like Japan, Korea and Malaysia. Currently, the country is negotiating about a dozens of such pacts with countries like Australia, New Zealand and Canada. The most ambitious one is under negotiation with the 28-nation bloc European Union. These pacts provide new markets for Indian companies in accessing modern technologies. But India should ensure that countries do not start dumping cheap products in the Indian market. The government should keep a regular track and use all safeguard mechanisms to protect domestic players. India has the potential to achieve the double digit growth in the long term. It has grown by over nine per cent over three consecutive years before the global economic crisis pulled down the growth rate. The manufacturing sector needs a major boost, and an accommodative monetary policy will help revive the sector. Indian policy makers do understand the urgency and are taking steps to revive investment. The setting up of Cabinet Committee on Investments will give a big push to the stalled projects, and hence provide an impetus to the manufacturing output.
The author is the Head of Technical Services and Product Development at Dalmia Cement Bharat Limited.
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facts & figures promotion & development
Supporting
SMEs
Initiative to promote innovative ideas and sharpen entrepreneurship acumens through incubators is yielding good results. By M. P. Singh
T
he scheme of ‘Support for Entrepreneurial and Managerial Development of SMEs through Incubators,’ operational since April 2008, is one of the components of ‘National Manufacturing Competitiveness Programme (NMCP),’ which gives emphasis on the ‘Support for Entrepreneurial and Managerial Development of SMEs through Incubators.’ In fact, the government (govt) launched NMCP to improve the competitiveness and efficiency of MSME sector. Under the scheme the main task is to promote individual innovators who can become technologybased entrepreneurs. The ministry of MSME provides assistance of 75 to 85% of the project cost up to the maxi-
18
february 2014 | industry 2.0
mum of 8.00 Lakh per incubatee/ idea. Each Business Incubator (BI) is expected to nurture 10 innovative ideas and seek govt assistance up to a maximum of Rs. 62.25 Lakh – and in addition Rs. 3.78 Lakh for infrastructure and training under the scheme. Host Institutions / Business Incubator are selected for implementing the scheme through a selection committee. The implementing agencies may be Engineering Colleges approved by AICTE, Central / State Universities recognized by UGC and other recognised R&D and / or Technical Institutes / Centres, Development Institutes of DIP&P in the field of Paper, Rubber, Machine Tools etc., and these selected institutions are known as Host Institutions. These insti-
- technology management for decision-makers
tutions have appropriate number of faculties, technical expertise and infrastructure for nurturing the new innovative ideas. Host Institutions are exploring the new innovative ideas from the incubatees of various existing sectors and prospective entrepreneurs. Even the students from the various streams are also participating in nurturing their new ideas through the Host Institutions as a part of their studies and career building. Since inception of the scheme, 107 BIs have been selected. Since 2008, 370 new innovative ideas have been undertaken from the various incubatees for nurturing. After releasing the govt fund to the host institutions, follow-up action is undertaken by the Ministry of MSME to ensure
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the appropriate implementation of the schemes and getting their commercialisation stage and thereupon success stories. Till date 89 ideas have got commercialised by the incubatees.
Success story
1
• Incubator: TREC-STEP, Tiruchirappalli • Incubatee: Arvind A. Nayaran, M/s Pure Tech India • Idea: Water-soluble coolant recovery system • Benefits: New product developed to promote clean & green mfg tech. The product is also being exported. Pure Tech India is a successful knowledge-based venture dedicated to innovative design and manufacturing of specialty engineering equipments used for liquid pollution control incubated at TREC-STEP with the MSME support. The company serves engineering, automobile, food and petrochemical companies and treatment plants across the country and abroad. The company is recipient of ‘Asia’s Best Incubatee Start-up’ award for the year 2010 and ‘Best Start-up Clean Tech Company of 2009’ by the Indian Science and Technology Entrepreneurs Parks and Technology Business Incubators Association. This venture also achieved a turnover of Rs. 1.42 crores in the FY 2011-12 and aims at crossing Rs. 2.00 cores.
Success story
2
• Incubator: KIIT Technology, Bhubneswar • Incubatee: Kaushal Nehta • Idea: Gas detection kit – SMS alert on gas leakage • Benefits: SMS alert on LPG leakage helps prevent leakage by alerting you even when you are far away from the spot. The incubatee has developed
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a kit comprising devices for SMS alert while LPG leakage occurrs in domestic and commercial activities. In the first stage, prototype for the same was developed, and it was tested for quality and achieved a good result to be taken for commercialisation in the market. Market has responded very positively and the incubatee has received a good feedback from the market. On getting the feedback from the market the incubatee could apply for patent. The Kit is in vouge in the market, and licensing with the industry for full commercialisation is under process.
Success story
3
• Incubator: TREC-STEP, Tiruchirappalli • Incubatee: Panneerselvam and Kannappan, M/s Bharat Agro Products • Idea: Tractor mounted pulverizer / bio mass straw combine (Patented) • Benefits: Converting agro cut wastes into high calorific input / chips for eco-friendly bio-mass plants. This innovative technology solution called, ‘Tractor Mounted Pulverizer’ is a fit-in system, mounted on a tractor to collect, pulverize and manufacture high calorific fuel for power plants from the cut wastes of Julie flora thorn and wastes that are presently fired in the open by farmers. Prosopis Juliflora is a highly useful fuel wood source in India, and also in many other countries and a high calorific input for the bio-mass plants. The incubatee utilises this opportunity as an immediate market potential of nearly 2800 machines in Tamilnadu (1 machine collects approximately 5 tonnes per day) for collecting these waste and converting them into useful fuel for bio-mass power plants. The
Year-wise progress of the scheme Sl. No.
Year
No. of HI/BI approved
No. of Ideas approved
GoI Assistance (Rs. in crores)
1.
2008-09
25
18
-
2.
2009-10
29
164
1.906
3.
2010-11
22
95
5.76
4.
2011-12
-
49
2.06
5.
2012-13
26
29
2.301
6.
2013-14
5
15
1.55
107
370
13.577
Total
venture has effectively started commercial production and marketing to private entrepreneurs, NGOs, farmers, etc.
Success story
4
• Incubator: MITCON, Pune • Incubatee: Ruchita Tiwari, M/s Shri Vinayak Bioteks • Idea: Production of liquid biofertilizers • Benefits: Encourage formation of resting spores or crystals for longer shelf-life and tolerance to adverse conditions. It suffers from no effect of high temperature, better survival on seeds and soil. After attaining the training in production of micro bial inoculants at MITCON incubator, the incubatee could achieve a standard formulation under consultation of micro biologist of MITCON and technical know how was developed for production of liquid bio fertilizer and finally liquid bio fertilizer were produced. The product design labeling and packaging will be standardized after receipt of manufacturing and selling license from the GoI. The incubatee is also taking the assistance from the other incubatees in forming her own network. She has collaborated with M/s. Parag Industries. The author is the Additional Development Commissioner & EA, Ministry of MSME.
industry 2.0
- technology management for decision-makers | february 2014
19
techwatch R&D To Understand Metal Microstructure
R
esearchers from Carnegie Mellon University (CMU) are working with industry – to develop methods to make the three-dimensional printing technology suitable for fabricating metal components for a higher volume manufacturing process. With a $1.9 million grant from America Makes, the National Additive Manufacturing Institute in Youngstown, Ohio, CMU Mechanical Engineering Professor Jack Beuth will lead a research team in developing tools to improve powder-bed additive manufacturing processes, better known as 3-D printing. The technology allows building of highly complex components that cannot be fabricated by traditional processes, while decreasing the cost of products, including jet engine parts and medical implants. Beuth and CMU team members Fred Higgs, Professor of
Mechanical Engineering, "At this time, highand Anthony Rollett, Proquality results are only fessor of Materials Science guaranteed, if powders and Engineering, and from the additive manuOla Harrysson of North facturing machine manuCarolina State Univerfacturers are used. For sity, have been working those processes to become to control and understand high volume manufacturmetal microstructure and ing processes, a wider mechanical properties range of powder options is Professor Jack Beuth of products made by two needed," said Beuth. kinds of additive manufacturing His team is charged with determinprocesses. ing how to alter the additive manuThe team is investigating the EOS facturing process to allow for use of a Laser Sintering process and the Arcam wider range of powders. Electron Beam Melting process. The team includes twelve industry Both of these processes are partners representing powder manupowder-based additive manufacturfacturing, aerospace, medical devicing processes that directly build metal es, electronics and other industries. components from metal powders. At Carnegie Mellon University, a foundpresent, these two additive manufacing member of America Makes, has turing processes are the most successpurchased new metals-based additive ful at automatically fabricating any 3-D manufacturing equipment to complete shape of metals. the research.
A
team in MIT’s Quantum Engineering Group has developed a new method to control nanoscale diamond sensors, which are capable of measuring even very weak magnetic fields. The new control technique allows the tiny sensors to monitor how these magnetic fields change over time, such as when neurons in the brain transmit electrical signals to each other. It could also enable researchers to more precisely measure the magnetic fields produced by novel materials such as the metamaterials used to make superlenses and ‘invisibility cloaks.’ In 2008 a team of researchers from MIT, Harvard University, and other institutions first revealed that nanoscale defects inside diamonds could be used as magnetic sensors.
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february 2014 | industry 2.0
Science and Engineering (NSE) at MIT. Previously, researchers have used electrodes inside the brain to ‘poke’ a neuron and measure the electric field produced. However, this is a very invasive technique. You don’t know if the neuron is still behaving as it would have if you hadn’t done anything, Cappellaro says. Instead, the diamond N2-vacancy centers, are sensitive to external magnetic fields. sensor could measure the magnetic field noninThe naturally occurring defects, known vasively. “We could have an array of as nitrogen-vacancy (N-V) centers, are these defect centers to probe different sensitive to external magnetic fields, locations on the neuron, and then you much like compasses, says Paola Capwould know how the signal propagates pellaro, the Esther and Harold Edgfrom one position to another one in erton Associate Professor of Nuclear time,” she adds.
- technology management for decision-makers
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Image Credit: Paola Cappellaro (courtesy the researchers)
New Method To Control Nanoscale Diamond Sensors
Soft Robotics Tech Spawns New Products
T
he robot gripper invented by researchers at the University of Chicago and Cornell University is now available commercially. Empire Robotics, the company founded to commercialise the invention, is taking orders for the limited first release of its product called VERSABALL, scheduled to ship soon. Heinrich Jaeger, the William J. Friedman and Alica Townsend Professor in Physics at the University of Chicago, said, “When we first started with the universal jamming gripper, we did not think about its industrial applications. But soon there were inquiries from various companies and in those early days we had to tell them that we were in basic research rather than R&D ‒ and therefore we could not
VERSABALL robot gripper
really make robotic grippers for sale.” But since then John Amend, one of Jaeger’s Cornell Collaborators, has cofounded Empire Robotics to bring the robot gripper technology to market. Amend, the company’s Chief Technolo-
gy Officer, developed much of the core technology as a PhD student at Cornell. His adviser was robot gripper Co-inventor Hod Lipson, Associate Professor of Mechanical and Aerospace Engineering at Cornell. “With our grippers we are able to handle a wide range of different objects on the same manufacturing line," Amend said. "We get a lot of requests for objects with holes in the center like hex-nuts, glass or plastic bottles, and objects that have odd shapes or shapes that vary between the individual parts,” he further added.
Low Cost H2O Treatment Technique Developed
M
ost water purification technologies are not accessible to economically disadvantaged people around the world. In a bid to make clean water available at low cost, Ramakrishna Mallampati, a PhD candidate at the National University of Singapore (NUS), experimented with water treatment techniques using materials that are easily available, and came up with novel ways to purify water using the peels of apples and tomatoes. This is the first time that the peels of the two fruits have been used to remove different types of pollutants in water. The studies were conducted under the guidance of Associate Professor Suresh Valiyaveettil of the Department of Chemistry at the NUS Faculty of Science. The NUS team hopes that their water purification methods can benefit communities living in places where there is little electricity or resources to set up a water purification plant. Tomato is the second most consumed vegetable in the world, with approximately 30 per cent consumed
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as processed products. The disposal of the tomato skin and its other fibrous materials is an economic waste for many food processing industries. Ramakrishna evaluated the effectiveness of tomato peel as an adsorbent by using different pollutants.
Peels of two fruits have been used to remove different types of pollutants in water.
He also studied the structure of the tomato peels to assess their efficiency as biomaterials to remove toxic metal ions and organic pollutants from water. In addition, factors such as the pH, nature and amount of adsorbent used for extraction were considered to establish the optimum conditions
industry 2.0
under which tomato peel could remove various pollutants from water. His study revealed that tomato peels can effectively remove different contaminants in water, including dissolved organic and inorganic chemicals, dyes and pesticides, and they can also be used in large scale applications. Ramakrishna also explored the viability of using the peels of apples for water purification, as apple peels are easily available as bio-waste from food processing industries and they are biodegradable. Similar to tomato peels, apple peels can also remove a range of dissolved water pollutants through the adsorption process. In order to enhance the ability of apple peels towards extraction of negatively charged pollutants, he immobilised naturally occurring zirconium oxides onto the surface of apple peels. Zirconium loaded apple peels were found to be able to extract anions such as phosphate, arsenate, arsenite, and chromate ions from aqueous solutions. This method of water purification can also be used for large scale applications.
- technology management for decision-makers | february 2014
21
cover story
Interim
Budget
2014-15
Interim Budget (IB) reactions reflect a tune of acceptance under a noalternative situation. From the opinions of the people from various walks of the Indian industry, it is obvious that many major areas have lacked due focus. However, till the actual union budget is declared by the new government, some segments of the manufacturing industry will enjoy a breathing space. By P. K. Chatterjee
A
lthough Interim Budget (IB) for the fiscal year 2014-15 has been okayed by most of the industry associations, all business-heads are looking at the actual 2014 budget, which will be released later this year. However, the manufacturing sector has a little to cheer up at this moment.
ASSOCHAM’s reaction on the IB “Despite being low on expectations in an election year, Finance Minister P. Chidambaram’s Interim Budget has given a pleasant surprise at least
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february 2014 | industry 2.0
- technology management for decision-makers
partly to the manufacturing sector, which has been bleeding. The excise duty cut on automobiles and capital goods will provide a much-needed relief to these sectors,” says Rana Kapoor, President, The Associated Chambers of Commerce and Industry of India (ASSOCHAM). According to ASSOCHAM’s post IB release: However, the industry would expect a much larger package from the new government to revive the manufacturing sector when a regular budget is presented some time in July. More importantly, the Finance Minister deserves to be complimented – since he is leaving
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Photo Credit: Press Information Bureau (India)
The Union Finance Minister, P. Chidambaram is addressing the Post Interim Budget Press Conference, in New Delhi on February 17, 2014. The Minister of State for Finance; Jesudasu Seelam, the Secretary; Revenue; Sumit Bose and the Principal Director General (M&C); Press Information Bureau; Neelam Kapur are also seen.
behind the government treasury in a sound shape with the result that the overall macro picture of the Indian economy today looks far better than it was about eight months back, says the ASSOCHAM Chief. The external sector today is far more stable with exports picking up and the current account deficit capped at USD 45 billion, a little less than half the worrisome level of USD 88 billion in 2012-13. The fiscal deficit has also been contained at 4.6 per cent, though it has been achieved by a big cut in the plan expenditure. But he did not have many choices either. However, the ASSOCHAM feels that there is an imperative need to cap the non-plan expenditure of the central government. The non-plan expenditure of over Rs 12 lakh crore gives an impression of a fat government, which needs to reduce its size so that more resources are left for development. The Finance Minister also needs a pat for not yielding to pressures of populism, which is generally evident in an election year. However, a ballooning subsidy budget of Rs 2.46 crore remains a big burden on the exchequer and needs to be pruned to a sustainable level by better targeting the subsidies in food, fuel and fertilizer. Despite being a vote on account, the initiatives on skill development, and the MSME innovation are laudable. While the industry too is disappointed for the country not being able to usher in the major tax reforms in the form of GST, we look
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forward to the new government to complete the task. The ASSOCHAM would like to see a government, which is stable and decisive – so that India reverts back to 8 to 9 per cent growth sooner than later. For us, there are no choices than to grow at a rapid pace whichever political combination is voted to power.
Comment from a fast growing SME This interim budget is important as India fights its way back to greater than 8 per cent growth trajectory. A significant boost to the industry is needed and the government scored brownie points by reducing the excise duty on select capital goods. It will have a ripple effect on the ancillaries to the automotive industry as the demand for automobiles will increase. This will provide a much needed boost to the manufacturing sector. However, it was again unfortunate that no specific timeline was given for introduction of GST. A multitude of agencies and taxes continue to harass the SMEs. Taxes have to be streamlined for the industry to conduct business smoothly. “The country needs to focus on innovation to solve its unique problems and this has to come from the SMEs. It is unfortunate that the focus on encouragement of innovation among the SMEs is missing. Besides, the Finance Minister as always made a general statement that we must focus on the manufacturing sector – but there was no mention on what and how it intends to do it with
industry 2.0
- technology management for decision-makers | february 2014
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cover story respect to the SME sector. The SME sector is responsible for more than 50 per cent of the jobs in India and the government needs to come up with innovative policies – so that the SMEs can thrive in this globalised world. Hopefully, the new government would look at this when it presents the full budget later this year,” says Samit Jain, Director, Pluss Polymers.
CII’s take on the interim budget Kris Gopalakrishnan, President of CII says, “The vision presented in the Interim Budget is very much in line with what CII believes in. The Finance Minister has highlighted the importance of the manufacturing sector, which is the key to reviving the economy. The performance of the manufacturing sector over the last one year has been consistently poor – and is in need of intervention by the government. On behalf of CII, I must thank the Finance Minister for recognising this need and reducing excise in some of the most affected subsectors of manufacturing. The reduction in excise duty on sectors such as automobiles, capital goods and consumer electronics is indeed welcome, as this will help revive demand in these sectors.” Since the Finance Minister made a special mention of the forward looking policy to promote Electronics sector, we hope that CII recommendation of abolition of SAD and reduction in CST for electronics sector will be taken up in the regular budget. This is important as electronics is a zero duty sector on account of ITA I. The restructuring of excise duty on handsets to include 1 per cent excise duty without CENVAT credit on inputs is welcome as this will encourage handset manufacturing in India. The CII President also welcomes the fiscal figures outlined by the Finance Minister in the Interim Budget speech: “It is clear that the government
has stayed on the fiscal discipline roadmap and achieving a 4.6 per cent fiscal deficit is no small feat. The fact that deficit has been targeted at 4.1 per cent for the next fiscal sends a strong signal and should help confidence in the economy.” “While the Interim Budget maintained overall expenditure on a tight leash, the Finance Minister manages to make some important allocations. Given the stressed assets in the banking sector, the Finance Minister’s allocation of Rs 11,300 crore for strengthening the capital base of public sector banks is welcome,” says Gopalakrishnan. CII hopes that the new government will further strengthen the support given to industry and extend the support to other sectors. The implementation of GST should also be a priority for the coming government.
Indirect boost to manufacturing sector Mahendra Singhi, Group CEO, Dalmia Bharat Cement, feels, “The Finance Minister has reiterated his focus on developing the manufacturing sector, and specifically talked about fast tracking large infrastructure projects like DMIC, and about introducing innovative measures of financing infrastructure development, which has been a key concern over the last few years. These are steps in the right direction, and will bode well for the cement sector. We hope to see stronger steps taken when the 2014 budget is released later this year.”
FICCI finds IB is on expected lines Sidharth Birla, President, FICCI says, “The statement made by the Finance Minister was balanced and largely on expected lines. While industry expectations were limited from an Interim Budget formality, the emphasis laid on turning around the growth trajectory and reviving the manufacturing sector in particular are well received.”
“Cement demand has been sluggish for some time considering the current state of the infrastructure industry, and the vote on account may help improve things slightly.” Mahendra Singhi Group CEO, Dalmia Bharat Cement 24
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- technology management for decision-makers
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“The vote on account clearly reiterated the relevance of the focus on innovation by sharing the plans for the Innovation Fund being made viable for MSMEs in India.” Dr. Chandan Chowdhury Managing Director (India) Dassault Systemes
The maximum focus this time was on the fiscal deficit number, a figure being closely watched by all investors. “The FM has stuck to what he had promised with fiscal deficit being kept at 4.6 per cent of GDP in fiscal 2014 and lower than the budget-estimate of 4.8 per cent. The future direction being given with regard to central government finances is also good. While this was the last budget of the govt, yet the FM refrained from announcing any large populist measures,” he added. Industry has welcomed the initiative of a ten point charter outlining the vision for future of the Indian economy. Many of the points mentioned such as need for fiscal consolidation; importance of foreign investments for financing CAD; creating a balance between price stability and growth; deepening the financial sector reforms; intensifying efforts on infrastructure development; boosting manufacturing growth with zero taxing of exports and minimum tariff protection to encourage domestic value addition; containing subsidies; having planned urbanisation and pushing skill development have been highlighted by FICCI even in its most recently launched ‘Economic Agenda for Growth’. “While many of these points are aspirational, these are all achievable through concerted effort and a coordinated approach between centre and states”, finds Birla. “On the excise duty reduction that was affected in select sectors, FICCI feels that the FM has chosen the areas carefully based on the recent performance of the industrial sector. While the period of relief is small, this move could provide some reprieve to the identified industries”, opines Birla. The Finance Minister’s statement that the government remains fully committed to ‘Aadhaar’, which is a key tool for empowerment, is re-assuring. FICCI also welcomes the Finance Minister’s allocation of Rs. 100 crore to the India Inclusive
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Innovation Fund for promoting innovation amongst the MSMEs, which form the backbone of India’s industrial economy.
Opinion of an innovation enabler “India is a strong services economy but it now needs to graduate to an innovation centric economy if it is to move to the next level of growth. The vote on account clearly reiterated the relevance of the focus on innovation by sharing the plans for the Innovation Fund being made viable for MSMEs in India. The MSMEs form the backbone of the Indian economy, and if they make innovation a part of their strategy, they would become more respon-
“The country needs to focus on innovation to solve its unique problems and this has to come from the SMEs. It is unfortunate that the focus on encouragement of innovation among the SMEs is missing.” Samit Jain Director, Pluss Polymers industry 2.0
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cover story “Containing Fiscal & Current Account Deficits has been a commendable job by the Finance Minister. He should be lauded for avoiding the election populism.” Viraj Naidu Managing Director, DISA India sive to the requirements of a globalised world,” comments Dr. Chandan Chowdhury, Managing Director (India), Dassault Systemes.
Input from the stock market A blog from the stock-broking and wealth management company Angel Broking states, “The fiscal deficit for FY 2014 has been positively reined in at 4.6% of GDP vis-à-vis market expectations of 4.8% of GDP. At least in the Interim Budget, the Finance Minister has estimated the fiscal deficit target for FY 2015 at 4.1% of GDP presuming higher GDP growth and tax buoyancy – but it remains to be seen whether the estimates are unchanged by the new government that comes to the helm over the over the coming 2 to 3 months.” “The market borrowing programme is estimated to be slightly lower than market expectations ‒ and that is likely to be positive for yields at least in the near-term. Excise duty cuts have been announced for sectors facing the major brunt of the slowdown, and hence the cuts for automobile production are positive for the automotive sector and for capital and consumer durable goods production spells good news for those sectors as well for manufacturing sector in general, albeit only in the nearterm, unless the measures are carried forward in the full year budget too. Going ahead, we believe that the general elections over the coming 2 to 3 months are likely to take centre-stage for equity markets and their outcome would be crucial for determining market direction.”
Exports resurgence: a gain in the medium term “Containing Fiscal & Current Account Deficits has been a commendable job by the Finance Minister. Also, I welcome the much needed push for Automotive Demand through cuts in Indirect Taxes. Exports resurgence, with the weak rupee, should
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be a gain in the medium term. This being an Interim Budget, not much was expected anyway. The Finance Minister should be lauded for avoiding the election populism,” communicates Viraj Naidu, Managing Director, DISA India.
In a nutshell It’s a temporary phase when some of the manufacturing segments will definitely find a favourable space to advance. For the progress of the whole sector many other actions need to be taken. Especially, the SME sector needs much more focus. In the words of Dr. Chowdhury, “Our manufacturing sector has been facing many challenges and its growth has been stagnant. It is heartening to see the emphasis this vote on account puts on the criticality of manufacturing for the Indian economy. If the manufacturing sector has to contribute 25 per cent to India’s GDP, then we need to reengineer our processes through technology enabled innovation. Manufacturing is now operating in an experience economy and the customers’ buying behaviour is fundamentally changing. Beyond product attributes, aesthetic and economics, customers make their buying decisions in a social and emotional context beyond technology. Manufacturing sector would need special attention of the government to become globally competitive.” Thus, the Interim Budget has brought in a three to four months boon for some of the manufacturing segments, they must use this time properly. The actual opportunities for the complete manufacturing sector may open up through the actual annual budget. Industry associations should make presentations in that regard to the new government. Also, the cooperation between the state governments and the union government only can improve the situation faster. Thanks to the Finance Minister for not presenting a populist budget.
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design & optimisation
Saving
Energy Researchers at the University of Twente have now developed a new type of membrane that allows separating gases from each other in an energy-saving way, even under extreme conditions.
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he chemical industry is responsible for one third of the energy consumption in the Netherlands. Approximately 40% of the energy is used for separation processes in which the products of chemical reactions are separated from each other. Researchers at the MESA+ research institute at the University of Twente have developed a new type of membrane for separating gases in the chemical industry. What makes the hybrid unique is that it can also be used at high temperatures and high pressures. The polymer membranes, which are currently used, do not work at such conditions. This development potentially offers the chemical industry considerable energy savings.
Resistant to high temperatures and pressures Currently, gases are separated via processes such as of cryogenic distillation, during which gases are liquefied by intensive cooling,
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The membrane is approximately 100 nanometres thick and consists of ceramic nanoparticles that are bound to each other at multiple points by long-chain organic molecules.
or through absorption processes. The disadvantage of these methods is that they often require a large amount of energy. Using membranes that selectively allow one gas through but retain another allows energyefficient separation. However, up till now there were no suitable organic membranes available –
- technology management for decision-makers
that also performed at high temperatures and high pressures. Conventional, organic membranes are made of polymers and are not stable enough at high temperatures. The membrane developed by researchers at the University of Twente, which consists of both organic and inorganic components, remains effec-
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tive at high temperatures (up to 300 degrees Celsius) and high pressures. This offers advantages for gas separation in the chemical industry, as many processes involve high temperature and high pressure conditions. The researchers have applied for a patent for their invention.
100 nanometres The membrane is approximately 100 nanometres thick (10,000 times thinner than a millimetre) and consists of ceramic nanoparticles that are bound to each other at multiple points by longchain organic molecules. These then form a sort of three dimensional web (with the nanoparticles as the junctions) and this web allows certain gases to pass through and retains others. As it is possible to choose the length of the organic molecules
Researchers reveal to Industry 2.0 On a query raised by Industry 2.0 on the comparative cost advantage of using the membrane in industry, the researchers informed, “The membrane development is still in the research phase, and it is not yet possible to give any comparative cost advantage estimation at this point. The cost advantage is process specific, so one would first
need to fully assess the current processes. Also, a large portion of the costs for such a membrane in industry are associated with the membrane module and support material. Answering another question raised by Industry 2.0 on relative easiness of producing the membrane on large scale, the researchers communicated, “The method used for the production of these membranes is called ‘interfacial polymerization.’ This is the most widely used technique for production of nanofiltration and reverse osmosis membranes for aqueous applications. The ease of processing, the defect free character of the obtained layers and the inherent thin membrane thickness are the advantages of this technique over other conventional membrane preparation techniques.”
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used (and therefore how fine the web is), it is easy to design suitable membranes for all kinds of applications. An added advantage is that the hybrid membranes are relatively easy to produce on a large scale, as the techniques used are compatible with those for producing the conventional membranes often used in water purification.
design & optimisation
A High-tech
Solution
Mahle’s TopTherm valve combines lightweight construction and cooling technology. The product has evolved from solid valves to hollow valves to EvoTherm – a solution for valve cooling that is low-cost as well as effective.
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The growing challenge The development trends of recent years toward higher specific engine output have led to the gas exchange valves being subjected to increasing thermal loads. The component temperatures
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The EvoTherm valve is an important addition to the MAHLE product portfolio. It is a highly demanded technology today.
at the exhaust valve are already above 800°C in many cases, which is a challenge for typical highstrength valve materials. Combustion optimisation by thermal management of the valves also plays an increasing role.
Typical limitations Typical limitations in terms of operational reliability of λ = 1 concepts are the maximum temperature
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Photo Credit: MAHLE GmbH
AHLE has developed a new technology on the basis of a conventional hollow valve with cylindrical bore, whereby an extended hollow cavity can be made in the valve head with just one additional process: Electrochemical Machining (ECM). This enlarged hollow space allows liquid sodium to dissipate the heat during engine operation even better. The valve head is cooled by the shaker effect: the hollow space is not completely filled with sodium, so that it is shaken as the valve moves; the sodium breaks down and thereby produces significantly greater heat dissipation via the valve guide.
at the exhaust valve, the turbine inlet temperature, and/or the maximum permissible inlet temperature of the exhaust gas at the first catalytic converter. In order to protect the components, enrichment of the mixture is often necessary at high engine speeds and loads to limit the maximum exhaust gas temperature and prevent the components from being thermally overloaded. Currently, the knock limit additionally presents a substantial obstacle to optimising fuel consumption in gasoline downsizing engines. The ‘knocking’ phenomenon is critical to the further development of CO2-optimised gasoline engines.
Features of the technology This technology can be used for both intake and exhaust valves. The surfaces in the combustion chamber are cooler as a result (reduction of approx. 30 to 50 K), allowing the knock limit to be shifted and thus enabling a more optimal selection of the firing point in the design of the gasoline engine cycle. The goal is to achieve a reduction in fuel consumption. The valve mass is likewise reduced by three to six per cent compared with conventional hollow valves. Measurements substantiate the temperature reduction on the exhaust side. An internal highstress endurance test to establish service life has also been concluded positively. The EvoTherm valve is an important addition to the MAHLE product portfolio. The necessity of applying such technologies is already clearly evident today. The MAHLE EvoTherm valve is the latest development to support engine manufacturers even more fully as they confront current and future challenges in engine development. Because the EvoTherm valve is based on a conventional hollow valve, it can be considered a low-cost solution.
Further development Beyond the potential of the EvoTherm valve, the thermodynamic advantages and industrial feasibility of the MAHLE TopTherm valve are now being evaluated. This valve concept is designed as a lightweight valve, and its advantages have been proven with respect to reduced friction in the valve train, which can lead to a reduction in consumption in the NEDC by up to 0.5 per cent. At the same time, the composite valve offers more extensive potential for reducing temperatures at the thermally highly loaded component surfaces – due to its construction as a rigid, rotationsymmetrical surface structure with a large sodium-
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The thermodynamic advantages and industrial feasibility of the MAHLE TopTherm valve are now being evaluated.
filled cavity. Based on thermal simulations and temperature measurements, there seems to be a potential to reduce the disk temperature by significantly more than 100 K.
Additional advantages In addition, this concept provides opportunities for the reduction of component protection measures – when used as an exhaust valve, due to the more uniform component temperature distribution and its proven high thermal load capacity. While the maximum permissible temperature of the exhaust valve is typically a limiting factor, besides the intake temperature at both the catalytic converter and the turbocharger, the MAHLE TopTherm can be designed even closer to the target of λ = 1. In comparative tests with conventional solid and hollow valves, the composite hollow valve demonstrated significant advantages in fuel consumption in the full-load range while maintaining the maximum permissible intake temperatures at the catalytic converter and turbocharger. These are the results of the shifted knock limit, with the resulting improvement in the center of combustion mass and leaner full-load design. Good potential is evident in the transient range as well, because the shifted knock limit allows a higher basic compression ratio and comparable performance targets can be achieved with lower boost pressure. A study of the industrial feasibility of this challenging valve technology with regard to production is near completion.
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quality & innovation
5
Advantages Of Ceramic Bearings
In manufacturing industry (especially in F&B manufacturing), full ceramic bearings and ceramic hybrid bearings offer some advantages to overcome the challenges like controlling costs and safety (food safety).
3 1 4 2 5
Ceramic in ball form offers twice the Rockwell hardness of that of steel, which results in a more durable and longer lasting bearing.
Use of ceramic bearings decreases energy consumption in plants. Thus, they offer a good potential for cost cutting (especially in Food & Beverage manufacturing).
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Ceramic materials can operate in extreme temperatures. Naturally, their total service life is higher (especially when deployed in F&B industry).
They can work with heavy loads, and will not corrode or rust when exposed to water, alkali or acids (especially during food preparation).Â
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Photo Courtesy: 1. www.sram.com, 2. www.revolvo.com , 3. m.schaeffler.com, 4. www.bocabearings.com & 5. www.schaeffler.de
Ceramic balls are far more efficient than steel balls, because the rolling surface is more spherically perfect. Therefore, they reduce friction.
quality & innovation
A Joint Effort
The Mahindra autoSHIFT incorporates some extremely advanced technologies resulting from the collaboration with Ricardo.
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he new Mahindra 5-speed autoSHIFT transmission represents a significant step forward in transmission technology within the Indian automotive sector. Designed specifically to improve the driving experience and fuel economy in the urban environment, the unit incorporates the key efficiency advantages of a manual transmission – while providing the smooth comfort and convenience of an automatic one. The Mahindra autoSHIFT technologies include an advanced electronic control and hydraulic actuation system
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that senses driver demand and initiates gear changes automatically based on a highly optimised shift map that delivers the best possible fuel efficiency. The new autoSHIFT has been launched for the first time in the 2014 model year Mahindra Quanto compact SUV. Driving the autoSHIFT provides a new experience, with the ability to switch between automatic and manual mode with just a tap on the lever. As a driver you are now under full control of the vehicle making your own decision to hold on a gear or make quicker or delayed shifts as you might wish, without the need to operate the clutch pedal.
“We are extremely pleased to be able to reveal the brand new Mahindra autoSHIFT 5-speed automated manual transmission, which has been developed through our longstanding and highly successful collaboration with global technology leader Ricardo. It is undeniably a first for the Indian automotive sector in that we have captured the best globally available skills and technologies and created a truly innovative product to be manufactured from the outset, here in India. Developed in partnership with Ricardo, the Mahindra autoSHIFT transmission promises our customers an exceptional automatic driving experience with superb fuel economy – and a fully capable manual mode where demanded, ” commented Rajan Wadhera, Chief Executive – Technology, Product Development and Sourcing for Mahindra. “Ricardo is proud to have been able to work with Mahindra on this impressive new autoSHIFT transmission system. Ricardo and Mahindra share an ethos of deploying excellence in engineering skills and technology to create highly innovative and market-leading products for customers that set new benchmarks for quality. We are grateful to Mahindra for revealing our involvement in the autoSHIFT transmission, and look forward to continuing our collaboration with this leading Indian automaker,” said Mayank Agochiya, President, Ricardo India.
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control & automation
Advantages of
Pre-integrated Sensor Elements Pre-integrated sensor solutions offered by Honeywell are becoming a popular and increasingly cost-effective alternative to the traditional sensor selection and integration process. By Valerie Rothermel
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ne of the most challenging aspects of the product development cycle is the design of the sensor elements for monitoring or control systems that require accurate, reliable real-world inputs. Instead of developing the sensor modules in house, many designers are now choosing to purchase either offthe-shelf or custom pre-integrated sensor modules. Offloading most of the design, test and manufacture of sensing elements to a third party vendor can optimise a company’s engineering team’s limited resources – while shortening a product’s time-to-market. However, there are still many critical decisions that a designer
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Honeywell TruStability board-mount sensors can provide reliable pressure sensing output for dry, wet, or wet/dry applications. They are available with digital or analog outputs in a wide variety of pressure spans, packaging styles and mounting options.
must make – that have a major impact on their products’ performance, reliability, and overall solution cost.
Sensor selection and integration challenges Designing the sensor elements that provide accurate, reliable data about the real-world conditions within HVAC, industrial or process control systems and medical devices can be one of the most time-consuming and expensive components of
- technology management for decision-makers
a product development cycle. Sensor design is an interdisciplinary process, which requires a design team to consider a myriad of electrical, mechanical, and manufacturability issues. Once the developer has identified the sensor element(s) best suited to the application, it must be integrated with the rest of the application. This process includes pairing the sensor with the right combination of signal conditioning circuitry, termination, and
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interface connector. The next step is deciding whether there is a standard off-the-shelf package, which can house the resulting assembly or if the application’s space and environmental requirements are best met with custom-fit packaging. A custom package may even integrate one or more sensors and other elements to create a next-higher assembly – for example, a pressure sensor with an integrated manifold for use in blood analysers and ventilators. As the sensor design evolves, so must its test plan. The design must include the procedures needed to verify that the final assembly will operate accurately and reliably – when it’s integrated with its host system.
The case for integrated sensor solutions Pre-integrated sensor solutions offered by Honeywell are becoming a popular and increasingly cost-effective alternative to the traditional sensor selection and integration process. In many cases, careful selection of a single known-good package – which may include the sensor (or multiple sensors), signal conditioning elements and other critical components – can reduce its design, manufacturing and test costs while helping accelerate a product’s development schedule. This can also help manufacturers shorten the certification testing schedules – because once an integrated solution is certified to comply with an industrial or medical standard, developers or designers who use it in their design do not have to re-certify their upgraded products. In most cases, any cost differential between pre-integrated/ pre-tested sensor assemblies and discrete components is repaid several times over with lower
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unit production cost and reduced testing costs. Using pre-integrated sensor solutions also eliminates the overhead associated with maintaining and tracking the many discrete components a manufacturer would have to stock for a traditional solution. Care should be taken however, to make sure that the specified sensor assembly fully meets the application’s requirements in terms of performance, operating environment, testing and reliability. Likewise, packaging options offered by a sensor vendor need to be well suited for the actual application. Another consideration is the level of design support provided by the sensor vendor. In today’s lean corporate culture, most companies tend to concentrate their limited engineering resources on the elements of their products, which serve as market differentiators – and rely on reference designs or canned solutions for the system elements which support them. As a result, it is important to consider how much assistance the engineering team will require to fully define the application’s requirements, identify potential solutions and objectively analyse the approach best meets them. In some cases, value-added assemblies can become a key part of the system’s differentiation, and should be considered early in design strategy.
The value-add methodology All integrated sensor manufacturers offer some level of design support, but this can range from occasional on-line chats or exchanging e-mail with a randomly-assigned application engineer to a full-blown design team – which ‘embeds’ itself with your engineering group for the
Honeywell HumidIcon
duration of the design effort. Honeywell S&C’s value-added team can provide any level of support along this spectrum necessary to help designers bring higher performance, reduced cost, and other benefits from a well-integrated sensor solution. Honeywell S&C’s new methodology provides several unique advantages, which can help differentiate a product and shorten its time to market. • Designers can leverage Honeywell’s experience in specialised packaging and assembly to meet the stringent requirements and standards required to qualify for use in industrial, medical, transportation, aerospace and military applications. • Honeywell S&C does not simply help its customers choose from a menu of stock components. If an optimal solution is not available as a standard product, Honeywell S&C’s application engineers work closely with the customer’s design team to create integrated assemblies based on the sensor components already used in the manufac-
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control & automation turer’s existing products or new ones which can further optimise the solution. • Honeywell’s value-added sensor solutions are fully tested and can be trusted to deliver both reliability and accuracy. This approach also enables increased vendor rationalisation by eliminating sub-contractors from the value chain. • The value-added solution also offers pre-certified sensor solutions that enable a manufacturer to quickly comply with many major medical and industrial standards. For example, by providing valueadded thermal management assemblies, which comply with the IEC 60601-001 standard, Honeywell may help manufacturers shave weeks, or months off the certification process required for many medical devices.
Value-added integration delivered real-world savings One of the value-added programme’s recent success stories began with a customer, who was not satisfied with the traditional position-sensing technologies that they were using (e.g., Halleffect sensors and magneto-resistive arrays) – because they were relatively expensive to implement and required frequent calibration. Since the applications their
Some value-added-products from Honeywell for pressure and thermal applications
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equipment were using did not need the incremental position data produced by conventional sensors, they wondered whether there was a less costly way to reliably produce the simple open / close / fault indicator signals they needed. Working closely with the customer’s designers, Honeywell’s value-added team developed a reliable, lower-cost alternative based on the Honeywell TruStability board-mount pressure sensor. In addition to a lower total solution cost than the sensing elements in their previous designs, the Honeywell TruStability sensor offers lower lifetime costs for both the manufacturer and its customers. This is primarily due to its rugged construction and robust components that produce the low-drift characteristics, which help them maintain accuracy throughout their service life. As a result, TruStabilitybased sensor solutions can be shipped as pre-calibrated units, which eliminate the need for the costly initial set-up and periodic re-calibration – that are required by many conventional sensing technologies. Despite changing requirements, the value-added group’s collaborative approach, which blurs traditional vendor or customer roles and responsibilities, helped produce a tightly-integrated sensor solution. The solution met or exceeded the customer’s design, performance, reliability and cost requirements and delivered the first production units in time to support the customer’s aggressive launch schedule. Pre-integrated sensor solutions can provide a cost-effective alternative to conventional discrete designs. While not every project involves the high level of integra-
- technology management for decision-makers
tion of the example presented in this article, most designs can benefit from using integrated sensor solutions. Selecting the right solution can be challenging. However, since such solutions often involve nearly every aspect of a product’s design, several reputable vendors can offer their customers integrated higher-level sensor assemblies, but Honeywell’s value-added sensor integration capability goes a step further by adding several unique twists to the traditional design process: • Honeywell’s upfront and ongoing technical support provides custom solutions to enhance the developer design process, ensuring that new and updated designs can be brought to the market quickly. • The value-added group’s unique design methodology helps designers navigate the complex interdisciplinary selection process more easily, giving them more control over the overall design. • Honeywell’s commitment to understanding its customers’ requirements, capabilities, and constraints allows it to create simplified manufacturing and test requirements, streamlined material logistics, and enable supply chain rationalisation, which can dramatically reduce total solution cost. • Honeywell’s collection of customisable pre-certified integrated sensor designs can dramatically accelerate certification of medical equipment, industrial controls and other mission-critical products. Similar savings can be realised for product upgrades or new designs, which use the same sensor elements. The author is the Senior Global Product Marketing Manager at Honeywell.
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supply chain
Margin Cushion
From Value-added Services India Ratings & Research (Ind-Ra) has assigned a stable outlook to the logistics sector for FY15. This is based on the strong likelihood of the sector continuing to display overall moderate growth rate despite a continued economic slowdown.
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ost segments of the Indian logistics industry have low leverage, except the Container Freight Station/ Inland Container Depot (CFS/ICD) segment, giving industry players a degree of financial flexibility to weather the slowdown. In addition, the value-added offerings of large players help support mar-
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gins, thereby cushioning their credit profiles.
Most of the Ind-Ra rated logistics companies are on a stable rating outlook The agency believes that revenue for companies offering value-added road freight services would grow at a higher rate of 12 to 15% in FY15 than those offering basic road freight services (8
- technology management for decision-makers
to 10%). Companies in the CFS / ICD segments could display a high single-digit growth rate on the back of a revival in international trade volumes. Third-Party Logistics (3PL) providers could also grow at a low double-digit rate in FY15, given increasing private port operations and integrated logistics offerings.
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Ind-Ra expects that large companies in the road transportation segment to continue to be resilient to the slowdown, given their high operating efficiency and presence in profitable subsegments – such as time-definite delivery services and specialised offerings. Conversely, small companies would continue to be adversely impacted due to low demand for road freight during the slowdown. This is because they contribute over 90% to truck ownership in the country, and are unable to revise freight rates in tandem with hikes in diesel prices. On the basis of Ind-Ra’s study, CFS/ICD operators could be most impacted from the slowdown in India’s international trade volumes, considering the large debt-funded infrastructure investments made. Moreover, inadequate cash flows may force few companies to opt for corporate debt restructuring. Ind-Ra believes that 3PL providers, particularly those that employ asset-light business models, will fare better than small companies as well as those that are asset heavy. This is because small companies offer a limited range of services or have invested heavily in infrastructure but are unable to generate the freight volumes necessary to make their operations viable. A wide range of service offerings not only makes clients more dependent on service providers – but also increases the negotiating power as well as profitability of service providers. Specialty segments, where service offerings are linked to non-discretionary spending by corporates and driven by favourable legislation, would continue to display strong revenue growth and stable margins, for example ATM replenishment and cash management services. Alternate-
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A wide range of service offerings not only makes clients more dependent on service providers – but also increases the negotiating power as well as profitability of service providers.
ly, services such as air charters could see a decline in demand due to the curtailment of expenses by corporates. Attractive business opportunities are arising from growing demand for specialised logistics services related to the recent explosion in the online retailing business. However, certain key regulations that were likely to provide a fillip to the industry have not been implemented. E.g. the implementation of the Goods and Service Tax seems unlikely before 2016 with the dissolution of the Lok Sabha in 2014, due to the upcoming elections. Additionally, the implementation of FDI in the Indian retail sector has failed to be extremely positive for the organised 3PL segment. This has been due to lack of political consensus, and complex government requirements involving restructuring of businesses by corporates before receiving investments.
What can change the outlook? Further slowdown: India’s persistent weak industrial activity and low international trade volumes impacting multiple segments of the industry could cause the outlook to be revised to negative. A lowering in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margins significantly below FY13 levels could notably weaken the credit profiles of industry players. Favourable legislation: Ind-Ra does not envisage any significant regulatory or market changes in 2015, which would affect the rating outlook. However, over the medium term, implementation of GST along with the resolution of complexities regarding FDI inflows in retail could be positive for the outlook of large players in the industry. They would be able to generate higher margins on the back of operational changes – to take advantage of the positive change in regulations.
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39
supply chain
Way
Forward Organisations can no longer continue to use the old approaches, and must adapt and create a more streamlined and reactive supply chain with well-defined R&D processes. By Manoj Soni
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ndian Pharmaceutical Industry is one of the largest and most advanced amongst the developing countries. Each day it is making new strides in drug discovery, patent laws, development of niche drugs and scale of exports to the developed countries. The industry, over the years, has made significant progress in infrastructure development and technological capability – and hence has produced a wide range of products. This growth momentum has brought to the fore host of new experiences for the pharmaceutical industry, and the experts are now tackling unparalleled change and challenges. As per the estimates, India’s pharmaceutical sector will touch US$ 45 billion by 2020 and is estimated to be the sixth largest in the world by 2020 (source: report by McKinsey & Company). With this forecast, the need for strategic business model and precision in Supply Chain Management comes into force. In this phase of continued expansion, innovation abounds not only in R&D, but also in business models – and hence a robust Supply Chain Management mechanism becomes imperative to pharma business. At Jubilant, our company is engaged in manufacture and supply of APIs, Solid Dosage Formulations, Radiopharmaceuticals, Allergy Therapy Products and Life Science Ingredients. We are actively servicing our customers in over 100 countries and this highlights the importance of a robust Supply Chain function. Jubilant enjoys leadership positions in various categories, such as globally No.1 in 4 APIs, globally No. 1 in Pyridine and its 10 derivatives and many more. The success of Jubilant resounds strong capabilities of its core functional departments and its manufacturing prowess. So the question is, what are the key attributes that transforms a ‘support’ function into an ‘enabler’? To understand this, one may consider the role of Supply Chain in total business operations. For the ease of understanding, one may draw parallels with a human body. If business performs role of a brain, Supply Chain function constitutes as a vertebral column. Today pharma companies invest heavily in logistics and proper channels of distribution for timely delivery of goods, for medicines to be kept upright and reach the right place (demographics). However pharma companies still bear the brunt of the weak Supply Chain Management Infrastructure. For the effectiveness of Supply Chain Operations, a functional leader may consider principles of VRF.
Defining VRF • V: Visibility • R: Responsiveness • F: Flexibility
Visibility Ensuring good visibility of data through continuous flow of information should be the first priority for a leader in Supply Chain function. This information source will originate from markets (through frontend workforce) and from sales transactions (across the geographies). Visibility of this data to the ‘forecast teams’ will act as an input for analysis, which can further integrate planning of MRP (Material Requirement Planning) for both, manufacturing plan and supplier plan. A good organisation will ascertain visibility as a universal feature. These organisations will map customers’ customer and also suppliers’ supplier. A customer order will trigger demand, whereas their customer behaviour will trigger forecast. One of the business rules says, ‘Whatever you measure, it improves.’ While ensuring visibility of
Ensuring good visibility of data through continuous flow of information should be the first priority for a leader in Supply Chain function
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data, organisations tend to commit mistake on identification of ‘what to measure.’ The step to know what to measure starts from identification of ‘need to measure.’ Organisations must set priorities on aspects to be measured and must define them with a proper timeline. For example, a yearly calendar with measurement priorities for each year. Good organisations will focus on measuring customer facing matrix, which in turn will enable measurement of internal matrix in the entire value chain. Usage of technology will empower us to achieve the objective of visibility. For example, at Jubilant we brought focus on transparent e-procurement purchasing electronic process (EJBUY). As a leading player in Active Pharmaceutical Ingredients (APIs), Pyridine and Fine Chemicals, the step has helped Jubilant in effectively addressing its partners’ expectations of fair opportunity, transparent decision making, speedier response and clarity of communication. This also facilitates our initiative towards environment protection, with paperless buying. Our E-procurement software eliminates manual, time-intensive bid/quote creation, distribu-
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supply chain Customer
Customers' customers
Manufacturer
Supplier
Smaller suppliers to main supplier
Mapping crucial elements in a value chain
tion, and has converted evaluachecks on its preparedness and tion process into a streamlined, ability to tackle market fluctuapaperless model to reduce tions. A robust communication administrative work-load. model should be developed withAt Jubilant, our measurement in internal stakeholders as well. systems fall within the Supply One must keep in mind that any Chain Re-engineering (SCOR) process can be successful only S Vertebral framework, which are able to through a disciplined approach. C column measure the critical parameters M for Supply Chain accuracy, have Flexibility stayed focused to improve the The efficient supply chain procustomer-facing metrics. Monthly cesses, which have been agile measurement of forecast accuto dynamic external market racy has created better visibility, conditions with changing busiespecially on inventory across ness needs, have been able to Role of SCM in total business the end-to-end Supply Chain. create flexibility and bring about By taking numbers- and continuous improvement in permetrics-based approach to supply chain manageformance. Businesses must have continued focus ment, pharmaceutical and life science companies on innovation by building the best- in-class supply can make well-informed and grounded decisions to chain processes that are sustainable. improve their maturity – and avoid the stumbling Organisations need to keep in mind that the blocks that other companies and industries have ‘change is inevitable.’ Our feature of flexibility will already identified. help us attain higher degree of responsiveness. At An effective collaboration between business Jubilant, we undertook initiatives on integrating partners is another step towards attaining visibility. logistics through multimodal transportation of bulk By developing a robust, real-time visibility system, liquids from and to the ports and its integration a company is able to manage a totally outsourced with in-house railway siding. global supply chain, and manage performance as if It must be remembered that organisations can the functions were all handled internally. At Jubino longer continue to use the old approaches, and lant, we conduct active and regular programs for must adapt and create a more streamlined and our service providers on behavioural safety, matereactive Supply Chain with well-defined R&D prorial handling and similar other topics, which are of cesses – to serve the customers of the present and importance to the organisation and for community future. In addition, they must be as aggressive on as well. This sort of engagement enables us to have process innovation as they are on product innovaan active interaction with our suppliers, and coltion. The best pharmaceutical Supply Chains of laborate with them in a meaningful manner. the future will be known by flexibility and agility of both internal and external workflows. Companies Responsiveness must create an environment that fosters process Our ability to respond correctly and within a innovation, creates visibility and emphasises on stipulated time automatically improves our visquality outcome at each stage. ibility. Organisations must develop communication channels in order to undertake time to time reality The author is the President, Supply Chain at Jubilant Life Sciences.
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supply chain
Marching Toward Integrated Industry Bosch has been awarded the Association of German Car Manufacturers' (VDA) Logistics Award recently. They have got the prize for completely virtualising physical flows of goods, which can now be tracked in real time with intelligent software systems. Let us see what they have done exactly…
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ow in Bosch, the global supplier of technology and services, the analysis of the data obtained helps manage and further improve processes. Successful data sharing across the company has been one of the project's major achievements. Standardised data can now be exchanged and shared between companies seamlessly and in real time. This makes it possible to optimise production and supply networks in a comprehensive manner. “Suppliers and customers can open up their processes for each other and integrate them with each other. This is making the vision of consistent data transmission in industrial supply chains a reality. The result is efficient, flexible, and ecofriendly production and logis-
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Bosch has been awarded the prize for completely virtualising physical flows of goods.
ceremony in Frankfurt. For instance, over the course of a pilot project at Bosch's Homburg site in Germany, the efficiency of logistics processes was improved by some 10 per cent.
Significance of the award
Dr. Stefan Asenkerschbaumer, Member of the Board of Management, Robert Bosch GmbH
tics networks,” said Dr. Stefan Asenkerschbaumer, the Deputy Chairman of the Bosch Board of Management, at the awards
- technology management for decision-makers
While narrating the significance of the awarded innovation, Matthias Wissmann, President, VDA, emphasised, “Intelligent production and logistics processes strengthen Germany's competitiveness as an industrial location. With their product and process innovations, German suppliers are playing a major role in ensuring that the German automotive industry is always one step ahead of the competition. With the help of the award, outstanding, innovative logistics concepts can serve as inspiration for all
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Technical aids have now made it possible to virtualise processes and flows of goods.
companies that are looking for creative and intelligent logistics solutions.” The standardised data-sharing concept that Bosch has now applied across the board is based on the findings of the RAN {Radio Frequency Identification (RFID)-based Automotive Network} research project. The project was set up with the aim of developing new management concepts for automotive industry production networks.
Virtual reality to improve the real world “Changes in industrial production, which in Germany are generally referred to as Industry 4.0, have long been underway. These changes are now being put into practice and are thus becoming visible,” said Asenkerschbaumer, the Member of the Bosch Board
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of Management responsible for purchasing and logistics. On the path to integrated industry, the company is building on the Bosch Production System, which has been successfully applied for years. In the past, the approach focused on optimising physical production and logistics processes – in other words, on the things that take place in the real world. But new information technologies have now made it possible to virtualise these processes and flows of goods. This is done via automated data collection, which gathers data on the status of products or transport containers throughout the production and logistics process. Technical aids such as RFID technologies can be used for this purpose. In the past, the physical flow of
On the path to integrated industry, the company is building on the Bosch Production System.
goods was entered manually into an IT system, a time-consuming exercise that reflected past status rather than present status. Error rates were high and data was never up to date. The flow of information was not in sync with the flow of goods.
Data to knowledge and knowledge to benefit The large quantity of current and thus high-quality data can be analysed with the help of software. Intelligent algorithms are applied to illustrate the relationships and interactions between parts of the process. This
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supply chain information can be applied to help further improve the entire system. “The production process optimises itself,” said Andreas Müller, a Bosch Project Manager, pointing out the benefits of the modern approach. “New data provides new insights, and these make it possible to further improve the system. In turn, the improved system generates new data, which helps build new, beneficial knowledge. It's a virtuous circle,” he continued.
Improving the valueadded chain By standardising the flow of data between companies, additional partners can be involved in efforts to optimise processes, including customers and suppliers. “Networked and thus intelligent production and logistics can only become reality once solutions are consistently applied between companies. By implementing this approach with its partners, Bosch has successfully realised the vision of supply chain management,” said Professor Wolfgang Stölzle of the Uni-
Bosch has received VDA Logistics Award for the virtual tracking of supply chains.
versity of St. Gallen, in explaining the judges' decision. Over the course of the pilot project, Bosch is working with an engine manufacturer and a supplier of reusable containers.
Activities in full swing Bosch is currently implementing the new approach at its own manufacturing sites around the world as well as with additional
“The production process optimises itself,” says Andreas Müller, a Bosch Project Manager.
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partners. The company is also working to further develop its technical solutions. Today, RFID tags are common information and data carriers. In the future, web-enabled sensors will also transmit status information about objects. The quantity and quality of data will continue to increase. Intelligent software solutions and high-performance algorithms will evaluate data, and this will open up new potential for improvement. As a leading global manufacturer of sensors, Bosch can rely on its own products in this area. Bosch Software Innovations, a Bosch subsidiary, offers customised software and system solutions. “By combining our expertise in the areas of processes, sensor technology, and software, we can further enhance our own and our partners' value added contribution. On the path toward integrated industry, we see ourselves as a leading user and a leading supplier of software and hardware,” Asenkerschbaumer said. Especially at the interfaces between value-added networks, there is potential to cut costs and create new services.
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Business Index Company ..................................................Page No.
Company ..................................................Page No.
Company ..................................................Page No.
Aemetis.................................................................06
Hindustan Salts Limited.......................................06
Pure Tech India......................................................19
BASF......................................................................04
Honeywell............................................................. 34
Rajasthan Electronics and Instruments Ltd........06
Bharat Agro Products............................................18
I H S................................................................09 & 11
REIL.......................................................................06
Bharat Heavy Electricals Limited (BHEL)............06
Indo Bearing Traders............................................ 05
Ricardo.................................................................. 33
Bosch.................................................................... 44
Ingersoll Rand....................................................... 05
Sambhar Salts Limited (SSL)...............................06
BSES..................................................................... 05
Intergraph............................................................. 03
Satluj Jal Vidyut Nigam Limited...........................06
Carnegie Mellon University ................................. 20
Jubilant Life Sciences...........................................40
Shri Vinayak Bioteks..............................................19
CG.........................................................................06
KIIT Technology.....................................................18
Siemens................................................................ 48
Cornell University..................................................21
Mahindra............................................................... 33
SKF........................................................................ 05
Dalmia Cement Bharat Limited.................... 16 & 24
Mahle.................................................................... 30
Solar Energy Corporation of India .......................06
Essar Ports............................................................ 03
MIT........................................................................ 20
TREC-STEP............................................................19
Essar Shipping...................................................... 03
MITCON..................................................................18
Universal Biofuels.................................................06
Foster Wheeler......................................................04
NTPC..................................................................... 05
University of Chicago.............................................21
Georgia Tech Research Corporation.................... 03
Perkins.................................................................. 03
University of Twente............................................. 28
Grundfos............................................................... 48
POWERGRID.........................................................06
VDA (German Machine Tool
GT STRUDL............................................................ 03
Punj Lloyd............................................................. 05
Builders’ Association) .......................................... 44
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february 2014 | industry 2.0
- technology management for decision-makers
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DELENG18539/29/1/2013-TC