Magnetic attraction Mahindra

MAGNETIC ATTRACTION

India’s largest and pioneering magnetic materials manufacturer has been enjoying a number of strategic developments since its last Industry Europe interview in 2009. Emma-Jane Batey spoke to chief operating officer Mr Arvind Nene to find out more.

Founded in India over half a century ago, erstwhile Mahindra Hinoday Industries Ltd (now Mahindra CIE Automotive Ltd) has steadily grown to become the country’s largest and most pioneering magnetic materials manufacturer. Able to provide everything its customers need for magnets, ferrite cores, magnetic induction lamps and other related magnetic products, the company’s extensive knowledge of magnetics is unrivalled. As the largest ferrite company in India, MCIE’s current production is about 6000 tonnes per annum.

Mr Arvind Nene spoke to Industry Europe to explain how this specialist knowledge has played a key role in the company’s success and will continue to influence its future. Mr Arvind said, “There are huge opportunities in India. With our magnetic knowledge it is a great platform. For example, MCIE already has an enviable market share of Automotive applications for magnets, but as the demand for super efficient domestic appliances such as induction hot plates, ceiling fans and air conditioners grows, so too does the demand for magnetics. The Indian domestic appliance market looks set to be as big as its automotive market and it is a very interesting and exciting time for us.” Feeling positive

Another reason Mahindra CIE is feeling positive at the moment is because of its recent strategic changes. Mr Arvind explained how five of the company’s component technology divisions, including its magnetic division, have now become part of a new company, Mahindra CIE. He said, “We transitioned in December 2014 and it is a time of great change for us. We have a new website at www. mahindracie.com and we have updated and upgraded all our available information. Mahindra CIE is formed by an alliance between the renowned CIE Group from Spain and the Mahindra Group. It is a great opportunity for us to extend our global reach into Europe.”

The recently-formed Mahindra CIE is a multi-technology automotive components supplier and is listed on the Mumbai Stock Exchange. Offering a broad portfolio including forgings, stampings, gears, casting, magnetic products and composites, the company has a unique product mix. Mr Arvind added, “We also continue to be India’s leading producer of magnets for automotive applications. Now that we are part of the respected CIE Group of Spain, we are part of an even bigger automotive network.”

It is this extended automotive network and the new joint venture that Mr Arvind believes is the key to Magnetic Products’ future success. He explained, “Everybody is talking about India being the next big thing: Mahindra is already big in India. We have a terrific market share here and a very respected reputation thanks to our strong orientation towards quality & customer focus. So we are already well-positioned to maximise opportunities in the growing Indian market and the new joint venture will mean that we can grow in Europe and beyond. The global automotive market is predicted to expand by seven to eight per cent in the next five years, so the demand for our automotive magnetic components will grow too. The Indian two-wheeler industry, the world’s second largest, is a big market for magnets and it’s growing rapidly.

Keen to expand

Mahindra CIE is also keen to expand the potential applications of its magnetic products beyond automotive. Mr Arvind noted, “We have been in the magnetics business for a very long time, over 50 years, and we are constantly looking at new ways in which our hard-earned knowledge can be used. We are excited by our vertical business growth, developing interesting ways for magnetics to be used in energy-efficiency applications. So our first such venture is in energyefficient Magnetic Induction Lighting for industries, street lighting, flood lighting and so on. Using magnetics, the lighting becomes at least 40 per cent more energy efficient. Domestic induction cooking becomes 50 per cent more efficient. These are just two examples of how magnetics is an ecologically responsible option. We have teams of people working on new ideas for our products to keep us as market leaders. Our added growth direction will be exploring Applications in ‘Energy Efficient Products’.”

With a new joint venture, new website, new communication tools and new applications, Mahindra CIE is entering a very positive phase. Mr Arvind understands that the company’s potential in the coming years may even outstrip its previous achievements. He concluded, “We are in the perfect position to achieve great things. We have the network, the product portfolio and the opportunities for organic and vertical growth and we look forward to really making the most of these opportunities. We expect growth in non-automotive applications for our magnetic materials as well as our automotive activities. Our reputation has been earned over many years of product development and hard work, so we know that the next stage in our history will be the ideal platform to showcase our knowledge and our value.” n