Manufacturing Today November 2017

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A TASTE FOR

EVENT REPORT: BFW PRESENTS MANUFACTURING DAY

SUCCESS SAUGATA GUPTA, MD & CEO, AND JITENDRA MAHAJAN, CHIEF SUPPLY CHAIN OFFICER, MARICO LTD, ARE USING INNOVATIONS AND ACQUISITIONS TO STEADILY CLIMB UP THE FAST-MOVING CONSUMER GOODS FOOD CHAIN.

Published by ITP Media (India)

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CONTENTS

18 A TASTE FOR SUCCESS

SAUGATA GUPTA, MD & CEO, AND JITENDRA MAHAJAN, CHIEF SUPPLY CHAIN OFFICER, MARICO LTD, ARE USING INNOVATIONS AND ACQUISITIONS TO STEADILY CLIMB UP THE FMCG FOOD CHAIN.

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MACHINING TECHNOLOGIES THE DEMAND FOR HIGH-SPEED MACHINING IS COMPELLING MANUFACTURERS OF CNC MACHINES TO COME UP WITH NEW TECHNOLOGIES.

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COOLANTS & LUBRICANTS WITH A MATURING MARKET AND RISING DEMAND, COOLANTS & LUBRICANTS VENDORS ARE KEEN TO EXPLORE NEW PRODUCTS AND APPLICATIONS FOR DIVERSE INDUSTRY NEEDS.

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TESTING & MEASUREMENT INDIA’S TESTING AND MEASUREMENT (T&M) INDUSTRY IS UNDERGOING MAJOR CHANGES DUE TO A TRANSFORMING INDIAN ECONOMY AND ADVANCEMENTS IN TECHNOLOGY.

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EVENT REPORT - MANUFACTURING DAY BFW PRESENTS MANUFACTURING DAY THREW UP SOLUTIONS TO THE MYRIAD ISSUES THAT COMPANIES FACE IN TODAY'S TIMES.

NOVEMBER 2017 | Manufacturing Today

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EDITOR'S NOTE

BUCKING THE TREND

Jayashree Kini Mendes

Mitalee Kurdekar

ACCORDING TO THE NIKKEI INDIA MANUFACturing Purchasing Managers' Index (PMI), which measures the performance of the manufacturing sector, September saw a sustained expansion in the Indian manufacturing sector. The Manufacturing PMI is based on five individual indexes with the following weights: New orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stock of items purchased (10%), with the delivery times index inverted so that it moves in a comparable direction. However, the rates of expansion eased slightly in both cases. Reflecting greater inflows of new work, Indian manufacturers raised their staffing levels, and at the fastest pace since October 2012.

The PMI in India came in at 51.2 in September 2017, the same as in a month earlier but below market estimates of 51.9. While output and new order growth remained weak in the context of historical survey data, employment grew the most since October 2012 and confidence strengthened.

The introduction of GST, as well as higher prices of steel and petroleum products, reportedly caused cost pressures to intensify during September. The rate of inflation was modest, and remained below the long-run series average. Firms raised their selling prices to protect margins amid higher inflationary pressures.

As much as the manufacturing sector would like to see growth, sudden change in policies (meant for the general good of the people) can create a setback for the manufacturing sector. For long, this is, perhaps, the only sector that has a strong visible measurable presence in the economy and the government must pay heed to this sector's woes.

The September data shows an encouraging picture.

Overall, a strong domestic buying, possible due to the festive season, is reflected here. The long-term benefits of the recent government policy might take time for more positive results. Now we need only wait for the Union Budget to see if the government will continue with its reforms trajectory and bring back the Indian GDP growth rate to Q1 2016 level of 9.2%.

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Manish Kulkarni, Director – Strategy & Business Development BDB India

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Raj Singh Rathee, Managing Director, KUKA Robotics India

Rajesh Nath, MD & CEO, German Engineering Federation (VDMA), India

Robindranath Som, President, Nickunj Eximp Enterprises

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D E I F I T R E C D LEE RE U S N E S G N I D L I U B N O I T A T I N R A E S P O PR , S L O C O T PRO R E T A EW T S A W D N A T N E M T TREA

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NEWS KEY HAPPENINGS

TATA MOTORS WINS ORDER FOR 10,000 ELECTRIC VEHICLES FROM EESL the government said in a statement. All 10,000 e-cars would be procured in two phases with 500 to be procured in phase-I and 9,500 vehicles to be ordered post phase-I deliveries. The contract is the starting point of EESL’s EV procurement programme, given that these vehicles will be used to replace the To fulfill the EESL order, Tata Motors will manufacture the electric version petrol and diesel cars used by the government and its agencies, which of its compact sedan Tigor at its Sanand plant in Gujarat. have around half-a-million cars, of Tata Motors has won a marquee government which about a third are leased. The governcontract for supplying 10,000 electric cars in ment has given the EV sourcing mandate to the contest for the Rs 1,120 crore order, the EESL, with the next set of tenders expected largest such procurement anywhere in the to source e-rickshaws and e-autos under the world. The vehicles will be procured by state- faster adoption and manufacturing of electric owned Energy Efficiency Services (EESL) at a vehicles in India (FAME) scheme. Tata Motors per-unit price of Rs 11.2 lakh and will lay the started its EV journey over three years ago, foundation for the government’s ambitious when in May 2014, UK-based Tata Motors Euplan for a mass shift to electric vehicles (EVs) ropean Technical Centre (TMETC) revealed a by 2030. “Tata Motors quoted the lowest price Manza REEV (range extended electric vehicle) of Rs 10.16 lakh exclusive of GST in the com- demonstrator vehicle. Located at University of petitive bidding. The vehicle will be provided Warwick in Coventry, TMETC has been workinclusive of GST and comprehensive 5-year ing on high-voltage distribution systems, batwarranty which is 25% below the current retail tery design and vehicle controller development, price of a similar e-car with 3-year warranty,” which were incorporated into Manza REEV.

ALSTOM BEGINS PRODUCTION AT INDIA’S FIRST ELECTRIC LOCOMOTIVE MANUFACTURING FACILITY Alstom has commenced production at its greenfield electric locomotive manufacturing facility in India. Located at Madhepura, Bihar, it is Alstom’s first electric locomotive manufacturing facility in the country.

The construction of the plant is a remarkable achievement in the construction of greenfield facilities in the country. The Prima T8 (WAG12) locomotive, which will be produced in this new factory, is part of Alstom’s Prima range of locomotives and has been specially adapted for the Indian network. The first two car body shells have arrived at Madhepura and will be soon fitted and assembled at the plant. The first locomotive will be ready for roll out early next year.

The first five locomotives by 2019 followed by 35 locomotives by 2020, 60 in 2021, and 100 every year till the target of 800 is completed.

Built to the highest standards of quality and

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NOVEMBER 2017 | Manufacturing Today

safety, this facility is part of a JV between Alstom (74%) and Indian Railways (26%). Spread across 250 acres, it employs 70 people, with plans to ramp up at a rate of 25% every year.

Commenting on this, Jean-Francois Beaudoin, senior VP Asia Pacific at Alstom said, “The E-loco project is a prestigious project for Alstom worldwide and this feat is a commendable achievement for us. It is a multimillion euro investment by Alstom and is a proof of our commitment to infrastructure development in India. In order to make a difference in this market, we need local expertise, competitive manufacturing capacity and close relationships with our customers. The commencement of production at the plant is a perfect testimony to our strategy to develop and grow a localised ecosystem to bring wide reaching benefits for railways and the community at large.”

RAJESH NATH OF VDMA INDIA CONFERRED WITH CROSS OF THE ORDER OF MERIT Germany has conferred the ‘Cross of the Order of Merit’, the highest civilian honour awarded to individuals for their services to the country, to Rajesh Nath, MD, VDMA India. The award, also known as Bundesverdienstkreuz or Federal Cross of Merit was instituted in 1951. It is Germany’s only honour that is awarded to both Germans and foreigners in all fields of endeavour. The Cross of Merit along with the certificate signed by the President of the Federal Republic of Germany, Dr. Frank Walter Steinmeier, was handed over to Nath by the Consul General of Germany in Kolkata, Dr. Michael Feiner, at the German Consulate on October 6.

VOLVO TRUCKS EYES THE CONSTRUCTION SEGMENT Volvo Trucks is eyeing the construction business and providing customers with solutions that will accelerate the progress of their business. Volvo Trucks in construction mirrors their long-term intent to offer modern trucks that will redefine trucking experience. Volvo FMX, a dependable and high capacity tipper is a solution when it comes to execute large construction projects in tough conditions. The engine technology and I-Shift transmission ensures high fuel efficiency and lowest cost per tonne. With progressive economic policies and increased investments into infrastructure, customers are willing to opt for efficient solutions.

www.manufacturingtodayindia.com

NEWS KEY HAPPENINGS

BRAKES INDIA, ZF LAUNCH ELECTRIC PARK BRAKE TECHNOLOGY IN INDIA

Sriram Viji holding up a model of the EPB at the factory.

Brakes India with JV partner ZF announced the successful production of the first Electric Park Brake (EPB) system with a global OEM, marking the first launch of its kind for the Indian market. EPB is part of a commitment to help enhance overall brake system performance, driver safety and comfort. In addition to providing park brake functionality, EPB is a fully-integrated part of the brake system with features such as dynamic actuation, brake pad wear sensing and reduced degradation associated with mechanical systems.

The EPB also helps in enhancing safety in emergency situations with full-four wheel

anti-lock functionality versus standard park brake, which provides emergency park brake on the rear axle only.

Manfred Meyer, global VP, braking engineering for ZF, said, “We were the first to market globally with our EPB system in 2001, which pioneered in Audi, VW and more recently on the BMW X4 and BMW i8, Jeep Renagade, Fiat 500X, Ford 150, Honda Accord, Nissan Qashqai, Range Rover Evoque and more.

We have produced more than 90 million units.” ZF offers a range of EPB solutions, including standard EPB, integrated EPB, which eliminates the need for a separate Electronic Control Unit (ECU) since it is integrated with the electronic stability control system, and EPB for front axles, which is more suitable for smaller vehicle segments.

Sriram Viji, deputy MD, Brakes India, said, “The offering of a front EPB opens up opportunities regarding EPB installation due to its architecture and performance benefits.”

MICHELIN ON A ROLL, SET FOR STRONG GROWTH IN INDIA French tyre-maker Michelin is preparing to enter a stronger growth curve in the Indian market, with market share gains supported by a new product range and capacity expansion. The company will increase its current capacity of 15,000 tonnes a year at the factory near Chennai to more than 30,000 tonnes by the end of 2018. The expansion is expected to create 150 new direct jobs.

The capacity hike has been necessitated in view of a growing demand for its tyres, launching of a new tyre range and widening of its product portfolio.

“Michelin is here for the long-term and we believe in the Indian growth story. We have so far invested Rs₹3,500 crore in a modern factory here and also in an R&D centre to serve not just India but also global requirements,” said CEO of Michelin Group, Jean Dominique Senard, who is

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on a visit to India, at its Chennai factory.

Described as a disruptive product, Michelin has just introduced a new truck and bus radial (TBR) tyre range called X Guard, which has been exclusively designed, engineered and made for India, and promises 10% more fuel efficiency when compared with the tyres in that category.

“X Guard is meant for customers who look for affordable, long-lasting and more fuel-efficient truck tyres. For slightly premium categories, Michelin offers X Multi, the tubeless truck radial range,” said Serge Lafon, executive VP, truck product line, Michelin Group. Michelin has just signed up with Ashok Leyland for the supply of its new X Guard range for its Captain range of trucks and other medium commercial vehicles.

This is the second OEM tie-up for Michelin in the commercial vehicle segment after Volvo.

UNDER 60 SECONDS Zebra Technologies Corporation has announced Savanna, a fundamental building-block platform for accelerating Enterprise Asset Intelligence and the digital transformation of enterprise operations for Zebra’s customers and partners. Savanna provides a means for Zebra, its partners and customers to build applications that make use of this edge data in near real-time to mobilize insight and actions that deliver new levels of service, productivity and profitability.

German additive manufacturing solutions specialist FIT AG announced that it is investing in five M 400-4 3D printing systems from industrial 3D printing supplier EOS, in order to expand its industrial 3D printing capacities and manufacture metal components. FIT specialises in additive manufacturing solutions with short lead times, and efficiently supplies companies from multiple industries with optimised, 3D printed components. In order to meet the demand, FIT is turning to the 3D printing solutions offered by EOS. FIT already uses several EOS systems at its factory, and by the end of this year, the company plans to set up another AM factory, specially designed for industrial 3D printing serial production, to house the five new M400-4 machines.

thyssenkrupp has created a new unit for its global forging activities in a bid to cater to new industries and cut reliance on combustion engine parts, which still account for a large part of its business. "Central management of our worldwide production network will enable us to use our facilities more efficiently and align them closely to customer requirements," said Karsten Kroos, head of Thyssenkrupp's components business. The new unit is a combination of two previously independent units: Brazil-based forging & machining, which makes crankshafts; and undercarriages, which is based in Italy, the group said.

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COLUMN

SUSTAINABILITY IN TEXTILE VALUE CHAIN THROUGH FOUR MAIN POINTS, AJAY SARDANA HIGHLIGHTS HOW THE TEXTILE INDUSTRY CAN CONTRIBUTE TO THE WELL-BEING OF SOCIETY.

The author is Chief Sustainability Officer, Pulp & Fibre Business, Grasim Industries Ltd., Aditya Birla Group.

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A UNITED NATION’S 1987 REPORT OF THE World Commission on Environment and Development says: Our common future noted that sustainable development meets the needs of the present without compromising the well-being of future generations.

Scientists have discovered that mankind's actions are pushing the planet's systems into unsafe territory. It will be difficult to continue to grow our economies because at some point the planet will not be able to continue to support our activities. It's often said that we are degrading the nature to such a point that the natural systems may not be able to recover. Contributing to a sustainable future becomes the goal for business, otherwise we cannot thrive on a planet that fails.

Sustainability in textile industry: The textile industry has an opportunity to create value for society. But it needs to correct the environmental and social footprint. Sustainability here consists of four factors: Raw material procurement, production of textile, added chemistry and end-of-life or disposal of textile along with ensuring health & safety for all working in this domain.

Raw material sourcing calls for addressing the land and water used to grow natural fibres like cotton and wool, regenerated cellulosic fibres or the impacts of extracting fossil fuels for synthetic fibres. With rising awareness, many raw materials now available are sustainable, such as cotton produced by BCI way, cellulosic fibres such as viscose, modal, etc. Recycled fibres are a new fad and help in conserving the planet, once we find a way to make it commercially viable.

Production concerns include water and energy used for manufacturing, the impact of waste due to production and a company's social responsibility that surround its facilities. The key here is optimal use of resources as textile manufacturing is water- and energy-intensive.

Use of renewable energy can be a game changer as the government looks at reducing emissions by 35% by 2030. Companies can start initiating projects related to renewable energy and WASH (Water, Sanitation & Hygiene). It can also help by using fibres that use less water and energy, such as dope-dyed viscose.

Added chemistries could impact the health of textile workers as well as consumers. Nowadays the impact of chemistry is seen as a key differentiator. Dyeing &

NOVEMBER 2017 | Manufacturing Today

Finishing contributes highly to pollution in terms of per unit production. Using Restricted Substance List (RSL) is one way to eliminate such chemicals.

Finally, the end-of-life scenario or disposal of textile article including its biodegradability and recyclability to turn it into new raw material, strongly affect its sustainability. New initiatives are taking place to bring the textile to circular economy concept to reduce waste and give new life to textiles. Choosing to work with biodegradable fibres such as cotton, viscose, modal, lyocell, is another solution.

Though the above four steps are easier said than done, integrating them is a tough task. Collaboration among the value chain can bring huge benefits.

Non-profit groups are working to raise the standard and one such group is Sustainable Apparel Coalition (SAC). Its vision is of an industry that produces no environmental harm. SAC is driving this through the Higg Index. This self-assessment tool empowers brands, retailers and facilities at every stage in their sustainability journey, to measure their impact on environmental, social and labour and identify areas for improvement.

The other non-profit is Textile Exchange, which equips people to accelerate sustainable practices.

In chemical and wastewater management, the ZDHC (Zero Discharge of Hazardous Chemicals) Foundation oversees implementation of the ZDHC programme.

Their mission is zero discharge of hazardous chemicals in the textile, leather and footwear value chain to to protect consumers, workers and the environment.

Another way to know the impact on environment is by conducting a Life Cycle Assessment (LCA) of the product. This assists companies in finding gaps in the process and closing those gaps like adopting best practices. Certifications (ISO 14001, OekoTex 100) and Ecolabels (like EU Ecoflower, USDA Biobased Product) are other areas to consider to take one’s organisation to a different level.

Sustainability is not only about looking into environmental aspects but also developing a clean supply chain and creating a safe and healthy ecosystem. To sum up, sustainability has to be integrated in business strategy and has to become a way of life if we want our businesses to survive and thrive in the years to come.

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COVER STORY MARICO LIMITED

A TASTE FOR SUCCESS

SAUGATA GUPTA, MD & CEO, AND JITENDRA MAHAJAN, CHIEF SUPPLY CHAIN OFFICER, MARICO LIMITED, ARE USING INNOVATIONS AND ACQUISITIONS TO STEADILY CLIMB UP THE FMCG FOOD CHAIN.

BY MITALEE KURDEKAR

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COVER STORY MARICO LIMITED www.manufacturingtodayindia.com

Manufacturing Today | NOVEMBER 2017

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COVER STORY MARICO LIMITED

COME TO THINK OF IT, MARICO LIMITED IS A late-starter in a world of old-timers. Yet, for a company that began its operations only in 1991 – decades after some of the FMCG giants that count as its direct competition – it has grown to acquire an almost cult-like status, thanks in particular to now household names such as Saffola and Parachute.

Not many could have dreamed of such staggering success, but, of course, Harsh Mariwala is a visionary in the true sense of the word.

In fact, Mariwala’s brainchild has matured by such leaps and bounds, that, in 2014, the founding chairman decided to hand over its day-to-day workings to competent professionals, taking a back seat for the first-time since giving birth to one of India’s most loved packaged consumer goods makers. And the plan seems to be working rather smoothly. Because, taking Mariwala’s dreams to greater heights, is the able duo of Saugata Gupta, MD & CEO, and Jitendra Mahajan, chief supply chain officer, who are further backed by the force of Marico’s strong 2,000-odd employee base.

And one of the pillars of this triumph is their unrelenting focus on innovation.

1. With nine manufacturing plants across India, Marico has increased its presence, thanks in particular to now household names such as Saffola and Parachute.

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ADVANCING INNOVATION “We are dedicated towards driving success through an innovation strategy that we believe will accelerate business growth. As market leaders, we have to create the category and make it more relevant,” believes Gupta.

For instance, the company re-invented their highlysuccessful Saffola brand, by venturing into the oats segment back in 2010. In a short span of time, Saffola Oats has become the number two player nationally, both in terms of value and volume. This is solely thanks to the out-of-the-box thinking on the part of their team. Consumer research revealed that in spite of Indian consumers finding oats unquestionably healthy, they would choose other daily breakfast options over

oats on account of the lack of taste. This gave birth to Saffola Masala Oats, pioneering the flavoured oats category in India.

Following the success of this product, Marico has identified an opportunity in the evening snacks segment, and is now targeting the healthy in-between meals segment through Saffola Masala Oats, offering consumers a tasty, yet healthy snacking option. “We will continue to increase the pace of product innovation and drive more consumers into the health basket,” Gupta proclaims.

Similarly, as part of their strategy to widen their styling and male grooming portfolio, Marico continues to invest in cutting-edge innovation and introduce new styling products. The male grooming market stands at Rs 3,200 crore, and is growing at a double digit CAGR, making increased penetration vital for Marico. In the male grooming range of products, Marico has expanded their Parachute Advansed portfolio into the men’s

“WE WILL CONTINUE TO INCREASE THE PACE OF PRODUCT INNOVATION AND DRIVE MORE CONSUMERS INTO THE HEALTH BASKET,” GUPTA PROCLAIMS.

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COVER STORY MARICO LIMITED 2

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2. The Parachute oil-filling line at one of Marico’s facilities.

3. Around 70% of the business is agricultural commodity-reliant, given the use of raw materials like coconut oil and edible oil.

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category, introducing the Parachute Advansed Men’s Hair Cream Range. They have also extended their portfolio for Set Wet, their marque male grooming brand, to include styling gels, deodorants and beard styling gels.

While they are keenly eyeing the urban grooming segment, they have not forgotten the rural market in India, and are actively strategising to unearth its hidden value. Gupta states that, “As FMCG players like us realise the growing potential in rural markets, there has been immense focus on captivating this segment, mainly through innovation in product design and packaging. With an aim to expand our rural footprint, one of our key growth pivots this year is targeting the bottom of the pyramid segment.”

To further strengthen their grasp in the low-unit pack (LUP) segments, Marico has been prototyping with sachet, spout and Rs 10 LUPs of its hair oil, serum and male grooming brands, focussing on availability and affordability of these packs to ensure conversion.

DESIRE TO DESIGN Of course, any innovation starts at the design stage.

NOVEMBER 2017 | Manufacturing Today

And, like with any FMCG company worth its salt, this is an area of strength for Marico, who are investing in and sustaining a robust R&D division. Their R&D efforts are directed towards core areas of nourishing formats such as hair oils, leave-in formats, male grooming formats, deodorants, premium edible oils, oats, and packaging innovations across the global markets.

“The major change in our approach in new product development was to employ ‘Design Thinking’, which has resulted in products that create value in the consumer’s life through appealing sensory, effective functionality and best benefit/price ratio,” states Gupta.

Besides innovations like Parachute Advansed Body Lotion and Saffola Masala Oats, they have launched new value-added hair oils with aloe and mustard, male grooming formats, multi-grain flakes, blended olive and flaxseed oil, and a new shampoo range in Vietnam.

Even in terms of the ingredients used, Marico funds research projects, says Mahajan. For instance, agricultural universities like Tamil Nadu Agricultural University (TNAU) are involved in studies revolving around coconut farming practices. On the other hand, sunflower-focussed research is carried out through the Directorate of Oilseeds Research (DOR), who deal with oil technology research.

R&D, Gupta suggests, will continue to focus on generating in-depth consumer insights, and develop strong technology platforms in the area of hair & skin nourishment and grooming. In addition, efforts are being made to harmonise products across geographies, design new products for specific lead geographies and re-apply the same to similar target segments in different regions. Improving measurement science, process engineering and innovation capability development, will be the other areas of attention.

IT’S ALL ABOUT PROCURING RIGHT In all, Marico operates in four key categories: hair care, healthcare, skincare and male grooming. To cater to

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COVER STORY MARICO LIMITED

4. Packaging innovation is one of the ways in which Marico intends to curb production costs.

5. Marico re-invented their highly-successful Saffola brand by venturing into the oats segment back in 2010.

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them, the company has set up nine manufacturing facilities in India and five production units overseas. In India, their base is spread across all the four regions; there are three plants in the south, another three in the north, one in the west, and two in the east, with the most recent one being set up in Guwahati and commencing commercial production in March this year.

Internationally, their manufacturing footprint is divided as such: two factories in Bangladesh, two in Vietnam and one in Egypt.

“Apart from our own manufacturing plants, we also have contracts with many co-packers and thirdparties around these units. These would amount to around 40 manufacturers, whom we deal with in this space,” says Mahajan.

The key to managing these manufacturing operations well is creating a fool-proof procurement strategy and well-oiled supply chain network. “We have developed our own in-house procurement excellence model. It works on eight pillars and each pillar takes care of one of the core excellence functions in the

procurement arena. For example, since we deal in agricultural commodities, it is very important for us to also understand what is likely to happen in the future in terms of the pricing, supply, demand dynamics and so on. Hence, forecasting becomes a very critical part of our procurement strategy. Therefore, forecasting as a pillar takes care of how to refine and improve forecasting accuracies year-on-year, and that is where the team then carries out multiple initiatives and projects,” confesses Mahajan.

About 55% of the business is completely agricultural commodity-reliant, given the use of raw materials like coconut oil and edible oil. The two major brands of Parachute and Saffola are edible oil brands, involving sourcing from pure agricultural produce. Almost 50% of their sourcing is done directly from farmers through multiple collection centres that they share across Tamil Nadu & Kerala. This is possible only by building a high degree of trust and transparency in the entire procurement process.

Having said that, this market sees huge volatility, with prices sometimes moving between 50% in both the plus and minus range. Due to the agricultural commodity portfolio, the raw material cost to the sales ratio is always likely to be high; unlike in personal care, which makes up about 37% of Marico’s exposure. While it is imperative to indulge in forecasting for the former, in the case of the latter, the higher cost is attributed to the packaging material and the marketing spend, requiring a special emphasis on packaging innovation and marketing strategies.

In terms of cost, Marico also utilises reverse auctions or online auctions, as well as annual and period contracts, which are indexed to certain available published indices. For example, because some products have linkages with crude oil, which sees drastic price fluctuations, they simplify the procurement process by

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adopting multiple price discovery strategies.

“We can’t change the product prices to a great extent, so it is important for us to remain price competitive when we source material, but also to ensure that there is a sustained availability of raw material in the longrun. While the business may grow in double-digits, the crop is not likely to grow with the same pace,” Mahajan states. To ensure continued availability of raw materials, Marico indulges in contract farming, not only in India, but also in Australia, Argentina and Mexico, thus derisking themselves from weather related issues.

In addition, they have a very large team on the ground that continuously works with the farmers, visiting them almost every three weeks to impart knowledge, resolve any problems they may have – within a 48-hour window – through agronomists, and conduct enrolment programmes to have more farmers join their ranks and commit to their practices. Presently, around 950 farmers have been thus enrolled, and in the last two years, they are believed to have seen an almost 20% increase in productivity by adopting Marico’s practices.

One such practice ingrained into the business is sustainability. “We now have almost 74% of our energy requirements fulfilled through renewable energy,” says Mahajan. In fact, the unit in Perundurai, Tamil Nadu, which manufactures coconut oil, is now run 100% on renewable energy. For thermal energy, it uses the solid waste generated in agricultural produce such as rice husk, coconut shell and so on; whereas for electrical energy, it uses wind energy.

More importantly, the FMCG business typically requires one to be cost-competitive, because it’s a fiercely competitive market. “There are constant changes in the marketplace; hence it means that you need to be agile and responsive to cater to the new needs of the market. And lastly, you need to be reliable, because that’s why the consumer continues to repeatedly buy your product; so, the quality needs to be maintained,” summarises Mahajan.

ACQUIRED TASTE Obviously, this is no easy task, given an ever-growing product basket that is spread across geographies.

Marico’s product portfolio currently consists of 25

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“WE CAN’T CHANGE THE PRODUCT PRICES TO A GREAT EXTENT, SO IT IS IMPORTANT FOR US TO REMAIN PRICE COMPETITIVE WHEN WE SOURCE MATERIAL,” MAHAJAN STATES.

brands, spanning Indian and international markets.

This is the result of local products as well as global acquisitions. In fact, Marico uses Mergers & Acquisitions (M&A) as a major growth strategy.

“We evaluate strategic inorganic opportunities that have attractive valuations and will accelerate our growth agenda – there is a constant trade-off between build and buy models. Having done a lot of acquisitions over the past 10 years, we have now incorporated our learnings for the future,” admits Gupta.

Just in March 2017, Marico acquired a 45% stake in a male grooming start-up Beardo, which sells men’s hair, facial hair and skincare products. “We are confident that this partnership will fast-forward our journey towards nurturing a future-ready male grooming portfolio and brand in the online and salon space. This is also in line with our emerging focus of venture investments into start-ups to incubate new engines of growth,” professes Gupta.

This move is also a means to access the emerging niches at the premium end, and will turbocharge Marico’s digital marketing and social media engagement capability. The company sees an opportunity to learn from an online brand like Beardo, using it as one of the

6. An automated Parachute packaging line in progress.

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growth tools for the future. This is reflective of their belief in e-commerce as a good channel. They hope to be able to double sales from e-commerce within this year, with more than 10% of sales of the ‘youth brands’ category coming from e-commerce.

Another aspect of their acquisition strategy is the cross-pollination of brands between international and national businesses. While in Bangladesh, they have launched brands like Set Wet Gels & Deodorants, Saffola Active and Parachute Body Lotion, X-Men has been introduced in Myanmar. In the near future, there is an intent to improve this blueprint further.

Highlighting the advantages of the process, Gupta points out that, “Through M&As, we obtain a direct access to new, emerging markets, garner a deeper understanding of upcoming categories like the male grooming segment, as well as provide opportunities for our key talent to experience diverse career opportunities.”

7. A product laboratory at one of the pure coconut oil manufacturing facilities in Tamil Nadu.

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LOOKING AHEAD Another commendable move has been Marico’s conscious pursuit of the strategy to reduce its revenue reliance on core brands such as Saffola and Parachute.

While these brands continue to remain the company’s marquee brands, having gained market share and profitability, the company has, in the last few years, made significant investments to expand its non-coconut oil portfolio such as value-added hair oils (VAHO), deodorants, gels, leave-in conditioners, body lotion, masala oats and premium edible oils.

“Ten years ago, Saffola and coconut oil constituted ~ 70% of the group revenue. However in FY17, it has been reduced to 55%. Simultaneously, the share of value-added hair oils has gone up from 15% to 25% and the male grooming portfolio, which was almost non-existent, today contributes circa 8% to the group turnover,” Gupta proudly declares of their progress on this front.

Over the medium-term, Marico aspires to be a leading emerging market multi-national with a leadership position in the two core categories of nourishment and male styling within emerging markets across Asia and Africa.

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MARICO’S PRODUCT PORTFOLIO CURRENTLY CONSISTS OF 25 BRANDS, SPANNING INDIAN AND INTERNATIONAL MARKETS. “We have already initiated definitive steps to meet this aspiration by seeking to win amongst consumers, trade and talent. Towards this goal, we will continue to step up efforts in five areas of transformation, where we aim to develop top quartile capability and processes. These are innovation, go to market transformation, talent value proposition, IT & analytics, and value management,” declares Gupta about the way forward.

The company continues to perceive its brands and talent as its key assets, and is investing in nurturing both for a long-term, sustainable and profitable growth.

While they are trying to maintain marketing investments in the band of 11-12% of revenue, over the last few years, they have made a conscious investment in digital marketing, and understandably so, given that more and more consumers are now becoming digitally active.

“In maintaining a judicious balance between demand generation and consumer promotions, Marico, as a company, aspires to retain its number one or number two positions in whichever categories and markets that it operates. In its India business, the company aspires to grow volumes at a CAGR of 8-10% in the medium term, while in its international business, it aims to grow at a constant currency growth of over 10%,” concludes Gupta.

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FEATURE MACHINING TECHNOLOGIES

MAKING A MARK

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THE DEMAND FOR HIGH-SPEED MACHINING IS COMPELLING MANUFACTURERS OF CNC MACHINES TO COME UP WITH NEW TECHNOLOGIES.

BY MADHUKAR JOSHI MANUFACTURING COMPANIES ARE ALWAYS inclined to invest in new technologies. Considering that shop floor activities demand production to constantly move, it is necessary that companies keep automation in mind to meet demand. CNC machines and machine tools form an integral part to a manufacturing unit. The high demand for CNC machine technologies is well positioned with product portfolios focused on every end market. Most of them have solutions for various sectors including aerospace, defence, railways, and of course, automotive, which has been their mainstay.

Machining in general is a way to transform a stock piece of material such as a block of plastic and arrive at a finished product (typically a prototype part) by means of a controlled material removal process.

Similar to the other prototype development technology, FDM (3D printing), CNC relies on digital instructions from a Computer Aided Manufacturing (CAM)

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or Computer Aided Design (CAD) file. The CNC machine interprets the design as instructions for cutting prototype parts. The ability to programme computer devices to control machine tools rapidly advances shop productivity by automating the highly technical and labour intensive processes. Automated cuts improve both the speed and the accuracy with which prototype parts can be created - especially when the material is critical.

Ambrish Nasit, assistant manager, technical sales support, Jyoti CNC Machines, says, “Adopting multitasking concept is the latest trend in machine tool sector. Multitasking enables reduction in multi set-up and provides great flexibility to complexity. Jyoti has developed a special software 7th Sense which focuses on HMI (Human Machine Interface) which would integrate machine to factory digitisation. We have developed a wide variety of spindle option with machines to incorporate and suit special applications

1. The ability to programme computer devices to control machine tools rapidly advances shop productivity by automating the highly technical and labour intensive processes.

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FEATURE MACHINING TECHNOLOGIES 2

DETECTION OF ABNORMAL VIBRATION PATTERNS ARE PREVENTIVE MEASURES CONCERNED WITH SPINDLE FAILURE.

clamping and possibility of vibrations due to weakening/wear and tear of parts in the whole set-up.”

Machine tool manufacturers and manufacturing companies are benefiting much from the opportunities created by digitalisation, and are systematically enhancing their competitive edge. For instance, one company that has been at the forefront of solutions is Siemens, which has brought out an extensive range of automation and digitalisation solutions, which can reduce the time to market and increase production flexibility and efficiency increased significantly. It is the only company to offer both an end-to-end CAD/ CAM-CNC process chain and solutions for networking machine tools and higher-level IT systems.

and optimum requirement. Special modifications in design help in efficient chip management system and provide cost effectiveness.”

Oftentimes machining processes require the use of multiple tools to make the desired cuts (e.g. different sized drill bits). CNC machines commonly combine tools into common units or cells from which the machine can draw. Santoshkumar Ullal, director, EmugeFranken India says, “The biggest risks in high speed machining are the minute errors creeping in workpiece

ENHANCEMENTS IN TECHNOLOGY Average growth rates of over 7% make aerospace one of the global growth branches. DMG MORI supports OEMs and suppliers with productive manufacturing processes thus participating to a disproportionally high degree in the growth of this sector. In order to meet the high requirements of demanding users DMG MORI concentrates its entire expertise in the DMG MORI Aerospace Excellence Centre.

“Sales of several hundred million euros certainly make us the leader in the aerospace sector where machining is concerned. It is our aim to double this

“We have developed a special software 7th Sense which focuses on HMI which would integrate machine to factory digitisation.”

– Ambrish Nasit

2. Machines from Yamazaki Mazak India come with thermal control and cooled ball screws and spindle and temperature sensors.

3. Regular preventive maintenance of the spindle like lubrication and run-out checks, replacement of wear parts, is of utmost importance.

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figure over the next few years”, says Michael Kirbach, head of the DMG MORI Aerospace Excellence Centre. In 2016 alone, DMG MORI sold around 450 machines in this market in 25 countries. Early involvement in customer projects is a basic condition here for developing production solutions that have a promising future.

In the automotive industry, mainly in power train engineering, companies are now concerned with greenhouse emissions and energy efficiency. Importantly, other aspects at play are light-weighting and friction reduction. In both these strategies, what companies need to work out is a stringent surface finish and geometry parameters on critical power train components such as crankshafts, camshafts, gearbox shafts, etc. What they prefer to adopt is micro-finishing that helps them achieve the specifications for these mission critical work. Over the last few years micro-finishing technology has crossed several milestones and made possible key advances in vehicle performance. Micro-finishing generates lubricating characteristics at surface contact through a highly engineered surface finish so that the surface provides maximum bearing area to take up heavy loads and at the same time retain enough oil on the surface for adequate lubrication.

More often than not, companies are required to take up preventive measures so as to arrest spindle failure. “Regular preventive maintenance of the spindle like lubrication and run-out checks, replacement of wear parts, etc. is of utmost importance,” says Ullal.

Detection and indication of abnormal vibration pattern are prime preventive measures concerned with spindle failure. “Running the spindle under optimum spindle usage limit would also prevent spindle failure. Real time machine interaction for Condition Monitoring through different sensing element would help to detect and arrest failure. Also, selection of quality cutting tool would reduce impact on spindle and increases machining quality & performance,” says Nasit of Jyoti CNC.

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FEATURE MACHINING TECHNOLOGIES 4

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“The biggest risks in high speed machining are the minute errors creeping in workpiece clamping and possibility of vibrations due to wear and tear of parts.”

– Santosh Ullal

4. The machining of titanium components demands machines designed especially for heavy-duty metal removal.

5. Selection of quality cutting tool can reduce impact on spindle and increases machining quality & performance.

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Inefficiencies related to process and machining are two major contributors which would count for cost to the user. Increasing frequency of such incidence would add on to the excess non-productive cost.

"Process related inefficiency is directly related to process capabilities. First time part setup preparedness and controlled first setup quality check can avoid the cumulative setup inefficiency. "Machining related inefficiencies are related to tool monitoring, thermal load monitoring, efficient chip management system, and fixture & envelope cleaning. Missing focus on such factors can increase non-productive machine engagement, thus rising cost to the users," he adds.

Another company that has been at the forefront of introducing new machines for customers is BFW. Last year, at IMTEX, the company introduced a range of new machines in both milling/turning and complex

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solutions. It also unveiled its IRIS software platform designed to make manufacturing efficient and cost-effective It’s on the lines of Industry 4.0, and the machines have the ability to talk to the entire ecosystem. Ravi Raghavan, MD, BFW, believes that the industry needs to move to smart manufacturing. Moreover, the manufacturers need to understand that buying one smart machine will not do the trick. All the other machines in the manufacturing units need to be smart, or will have to be made smart. There is a misunderstanding that investing in technology is expensive. But few know that installing small sensors can help them go on live. The company is targeting SMEs with some of its smallest machines. Smart is not only for large companies, even small companies can adopt them because the gains will be much higher. He offers a simple definition of Industry 4.0: When all the machines talk to each other, it is Industry 4.0.

Early this year, Yamazaki Mazak India launched Smooth Technology, which have the latest six generation controller in all the machines. All the machines that Yamazaki Mazak India sells come with thermal control and cooled ball screws and spindle and temperature sensors which is taken care of by the machine itself. Globally, Mazak is a leading supplier to the aerospace industry. The aerospace industry buys machines from Mazak for engine parts, wing parts, the structurals, among other things.

The digital factory and digital enterprise remain key targets for aerospace, and the power of the CNC on all operational machine motion control, data gathering, and communications levels continue to feed that process, evolving at light speed.

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FOCUS 1

BFW EXPANDS ITS MANUFACTURING FACILITY IN INDIA BHARAT FRITZ WERNER (BFW), THE LEADING manufacturer of machine tools, has announced a major facility expansion recently for its Hosur and Bengaluru locations to attain the enhanced market demand. The foundation stone laying ceremony was held in Hosur on October 23, 2017.

Arun Kothari, chairman of Kothari Group; Shailesh Sheth, director, BFW; and Ravi Raghavan, MD & CEO, BFW, commemorated the ceremony in the presence of the BFW leadership team.

The first phase will be spread across 30,000m2 which will include significant numbers of modern mother machines to enable integration of existing foundry facility with machining capability. The second phase will expand to 60,000m2. Once operational, these facilities will double the machine building capacity of BFW. Coming within a week of BFW’s 56th anniversary, Ravi Raghavan, MD & CEO, BFW, said, “This expan-

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sion represents our enhanced commitment to enable progress of our manufacturing clients who continue to remain the purpose of our existence and stay at the nucleus of our every initiative.”

1. Ravi Raghavan, Arun Kothari and Shailesh Sheth look at the plans of the new unit.

2. Arun Kothari helps out in laying the foundation stone.

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FEATURE COOLANTS & LUBRICANTS

FLUID MOVES

WITH A MATURING MARKET AND RISING DEMAND, COOLANTS & LUBRICANTS VENDORS ARE KEEN TO EXPLORE NEW PRODUCTS AND APPLICATIONS FOR DIVERSE INDUSTRY NEEDS.

BY MITALEE KURDEKAR

PRODUCTIVITY IMPROVEMENTS AND CONTINUOUS cost efficiency are not new to any manufacturing industry.

However, these basic business requirements of OEMs and equipment makers are also closely monitored by players in the coolants and lubricants industry, even though they act only as an ancillary or support arm. Besides the advanced technologies employed by OEMs working on tough materials, and efficient metal working operations, their machining shops simultaneously keep exploring newer coolants and lubricants in an effort to enhance productivity and reduce processing costs.

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CHANGING PERSPECTIVES Punit Gupta, MD, Blaser Swisslube India, highlights the changing market scenario, when he states, “We see a drastic change in the way in which coolants and cutting fluids are being treated today. The Indian industry is maturing and customers have started seeing it as a value-adding area, however, it is a long journey ahead. There is a constant upgradation in the machining technologies, materials, regulations and competitiveness in the market, acting as a driver to this journey.”

In fact, industry customers considering the use of coolants and lubricants as a value-adding area is a key development, and one that speaks volumes about the future direction of the coolants & lubricants industry, in terms of both expansion and growth.

Gupta explains that while a sump in manufacturing operations was usually viewed as a mere dumping area, it is now seen differently. “The sump has very high leveraging potential to increase productivity in the overall manufacturing process, and contribute towards increased competitiveness. A lot of potential is hidden in machines and tools, and it is possible to extract it,” he supplies.

Acknowledging the fact that demand from the automotive sector still remains the most dominant for the coolants and lubricants industry, Munish Garg, MD, See Lube Technologies, feels that the explosion of this sector in India will continue to remain the prime growth driver for a variety of reasons. He suggests that, “India is becoming a hub for automobile production, and nearly all the OEMs are increasing their production capacities. This is going to impact the demand for coolants and lubricants. Apart from the automotive sector, other sectors like infrastructure and aviation are also opening up; this will have a positive impact on demand.” In fact, the Indian automotive industry itself is growing steadily at around 7-10% annually. So industry experts forecast that the coolants & lubricants industry will grow around the same rate, piggybacking on this primary demand.

With quality products, the importance of replacement demand cannot be ignored as well. Yatendra Kumar, business head, MotulTech India, supports this theory, and also provides a long-term perspective on the industry’s demand forecast. He explains, “The consumption of industrial lubricants will rise continuously in the short- as well as long-term, given

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FEATURE COOLANTS & LUBRICANTS

In line with current norms to go green during operations, many machining shops opt for environment-friendly, biodegradable products and also employ recycling programmes. In fact, suppliers of coolants and lubricants are increasingly supporting these newer requirements to further enhance their relevance to existing and prospective customers.

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FEATURE COOLANTS & LUBRICANTS

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“There is a constant upgradation in the machining technologies, materials, regulations and competitiveness in the market, acting as a driver to this journey.”

– Punit Gupta

“Apart from the automotive sector, other sectors like infrastructure and aviation are also opening up; this will have a positive impact on demand.”

– Munish Garg

1. One of Blaser Swisslube's Technology Centres.

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CUSTOMERS CONSIDERING THE USE OF COOLANTS AND LUBRICANTS AS A VALUE-ADDING AREA IS A KEY DEVELOPMENT. the positive growth of the Indian economy.” But he also cautions that, “Once electric cars and buses arrive in India, there will be a reduction in automotive lubricants.”

CUSTOMER IN FOCUS “Value for money products are still a major requirement from most of our customers,” says Kumar. Although he adds that, “Few of our customers who are serving foreign and multi-national companies are looking for highly environment-friendly products like biodegradable fluids, biocide-free and/or formaldehyde-free or vegetable oil-based products. There is also a trend for fill-for-life lubricants in a few OEM applications like steering or machine tool spindle.”

Gupta feels that customers are keen to increase their competitiveness, increase productivity & discover better quality of machined parts. “Customers are also more inclined to provide a safer working environment and more human-friendly products to their employees. Global competition among the customers is speeding this further,” he believes.

As a matter of fact, OEMs and equipment build-

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ers are keen to project the uniqueness of their own equipment to their end-customers and hence, in order to improve their competitiveness, would push the vendors of coolants and lubricants to offer quality products together with strong after-sales service.

Putting it in terms of money, Garg explains, “Cost per Component (CPC) is an evergreen requirement for increasing market penetration. CPC plays a vital role in deciding the future of the business. After-sales service too is becoming a driving force in the coolant industry. Even smaller consumers expect a good service from the coolant vendor.”

ENGAGING CUSTOMERS IN COLLABORATION Working in a dynamic environment to meet challenging and ever-changing business requirements calls for a high level of understanding and collaboration with one’s customers. Therefore, industry players accord top priority for such engagements. Gupta says, “We try to deliver a ‘liquid tool’ to our valued customers. It is a strategic way of co-creating solutions with our customers, which are beneficial and sustainable for a long time.” He further elaborates that, “High performance coolants are gaining importance and popularity due to continued high pressure in manufacturing environments for higher productivity, lower cost of ownership, higher quality norms etc.

Our strength has been to maximise values in the process for customers. Different customers have different value requirements and it becomes all the more important for us to align ourselves towards these requirements by working closely with customers.”

According to Gupta, this collaborative working brings customers much more than just a coolant.

They get a ‘liquid tool’ tailored to their specific application with high performance products complete with onsite Blaser know-how support to ensure correct use at all times under expert guidance. This comprehensive package lets customers fully exploit their machines and tooling potential.

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FEATURE COOLANTS & LUBRICANTS

2. With quality products, the importance of replacement demand cannot be ignored.

3. MotulTech offers new technologies to customers in line with their requirements and expectations.

Kumar too supports this preference for teamwork.

“We need to have lots of collaboration between OEM and vendors. Whether it is the introduction of new technologies like aromatic free rust preventatives, cleaners, EDM oil for health and safety or synthetic base metal working fluids for extremely long life as well low consumption of oil, a continues knowledge sharing and persuasion with the end customer helps to introduce these emerging technologies. In my view, we need an increased level of openness with machine tools OEMs to accept the latest technologies and trends that are more human-friendly and safe for our environment,” he professes.

Garg adds the angle of pollution control norms to this list, and suggests, “Disposal of coolant residue is becoming very difficult because of stringent pollution norms. It is forcing OEM's to collaborate for

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newer technologies like minimum quantity lubrication or ultra-cooled air guns.”

ROBUST R&D Of course, one cannot introduce a continuous stream of improved products in line with customer expectations without having a robust research and development (R&D) set-up to back its intent and efforts in market development. Gupta proudly proclaims that, “We constantly invest in R&D, because that is the best way to keep our new and existing products on the cutting-edge of technology. As a result of trying to provide our customers with technological benefits, our R&D has grown to one of the biggest in its field.

R&D is very important to Blaser Swisslube to uphold our benchmarking lead in microbiology.”

The bio-concept in Blaser’s Blasocut product

OEMS AND EQUIPMENT BUILDERS ARE KEEN TO PROJECT THE UNIQUENESS OF THEIR OWN EQUIPMENT TO THEIR ENDCUSTOMERS.

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FEATURE COOLANTS & LUBRICANTS 4

revolves around creating conditions that appeal to stable primary bacteria that eliminate all other bacteria by taking over the available nutrition, thus limiting their own growth as well. This helps the customer to avoid adding any other bactericides. Also, Blaser Swisslube has a technology centre for optimally simulating and thoroughly understanding their customers’ production situations.

Kumar emphasises the R&D contribution in MotulTech, when he states, “Normally, R&D in organisations such as ours is quite robust, since we make lots of special products. Most of the time, we offer the new technologies to our customers in line with their requirements and expectations.” MotulTech has an EDM oil called SAFCO EROLEC100, which is aromatic-free and has a high flash point, making it safe to use.

Garg also acknowledges the invaluable R&D support offered to the industry. “OEMs generally offload their expectations from coolant and lubricants to their vendors. If vendors are not capable of meeting their expectations, then business goes nowhere.

So, R&D plays a deciding role in the growth of this industry.” He adds, “We are working towards providing products which will carry the least CPC with minimum requirements of disposal. For instance, we have earlier provided a solution for the replace-

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ment of vegetable oil with water soluble oil in tough applications like threading, broaching etc. We are committed to provide such value-added solutions to Indian industries.”

Overall, the coolants and lubricants industry is showcasing a strong intent to grow with its customers, who display a holistic approach to manufacturing processes and appreciate the value-addition provided by superior coolants and lubricants during operations at their workplaces. The rising demand, coupled with growing maturity on the part of both customers in the form of OEMs and vendors of coolants and lubricants, is a sign that good times will soon be in free flow for this industry.

“We need an increased level of openness with machine tools OEMs to accept the latest technologies and trends that are more humanfriendly and safe for our environment.

– Yatendra Kumar

4. Collaborating with customers to meet challenging and ever-changing business requirements is key.

5. Vendors are investing heavily in R&D to be able to introduce a continuous stream of improved products in line with customer expectations.

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FEATURE TESTING & MEASUREMENT

TESTING TIMES

INDIA’S TESTING AND MEASUREMENT (T&M) INDUSTRY IS UNDERGOING MAJOR CHANGES DUE TO A TRANSFORMING INDIAN ECONOMY AND ADVANCEMENTS IN TECHNOLOGY.

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BY MADHUKAR JOSHI

1. India’s T&M market constitutes a vast ecosystem of product and service providers.

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A RS 1,300+ CRORE MARKET WITH CHECKERED progress in the recent past, but strong growth prospects in the long-term has been the story of India’s testing and measurement (T&M) industry. While two disruptive changes, demonetisation and GST, have had an adverse effect, the industry has proven its resilience to withstand shocks, and grow.

India’s T&M market constitutes a vast ecosystem of product and service providers including equipment manufacturers, software vendors, distributors, importers, C&F agents, consultants, and dealers. In addition, there are large and mid-sized system integrators who use T&M equipment and tools to provide turnkey project implementation services to enterprises and public sector undertakings (PSUs) in India.

The hardware solutions in this category include (but are not limited to) calibration systems, data loggers, flow meters, head space analysers, humidity mea-

NOVEMBER 2017 | Manufacturing Today

surement systems, industrial tools, material testing and coating systems, medical and speciality equipment, microscopes, multi-meters, oscillators and analysers, oscilloscopes, power testing and analysis instruments, power harmonics testers, probes, semiconductor testing solutions, signal generators, solar simulators, spectrum analysers, switching and data acquisition systems, work benches, and so on.

The software products primarily deal with T&M automation, data capture, analytics, and reporting.

SURVIVING THE DISRUPTION The last one year has been eventful for India’s T&M sector. During the last quarter of 2016, the economy witnessed a severe cash-crunch as demonetisation sapped 85% of currency in circulation. While demonetisation didn’t exert a serious blow to the organised sector, the unorganised market suffered

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FEATURE TESTING & MEASUREMENT

2

THE SOFTWARE PRODUCTS PRIMARILY DEAL WITH T&M AUTOMATION, DATA CAPTURE, ANALYTICS, AND REPORTING.

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nearly for two quarters. “The adverse effects waned following an initial shock. By March-end, businesses had figured out how to tackle the situation,” recalls Priyesh Chaudhary, executive director, management consulting, PwC India.

Another disruption that followed was the introduction of the Goods and Services Tax (GST). A fundamental reform that eliminated a dozen taxes (See Table 1), GST is expected to streamline indirect taxation in India. However, the adverse short-term effects of GST could be seen on three fronts—malfunctioning of the GSTN platform, lack of clarity about rate slabs, and a general lack of awareness about the Government’s policy direction. While GST-led confusion adversely impacted T&M sales for a quarter, industry participants expect recovery during the current, i.e. October to December 2017 quarter.

PwC’s Chaudhary assures: “Although GST rollout came with some teething troubles, the Indian industry will overcome these soon. The Government is taking steps to stabilise the GSTN platform. The industry too is making an effort to achieve tax compliance across IT systems, business processes, and distribution and supplier networks. The good part is, manufacturers are already experiencing the benefits of the new tax regime. For instance, the removal of entry taxes has slashed down the days wasted for goods in transit.”

Mentioning that there still exits confusion with respect to interpretation of GST rules, Farook Merchant, founder and MD, Messung Group, says that it will take a while for the industry to fully understand the new system. However, terming it as a game changer, he says that GST will prove beneficial in the long run. The simplified taxation (due to GST), according to him, is already delivering positive results. “Now we do not have to worry about many taxes (such as excise) or collecting various forms, such as a C form,” he illustrates.

“Our clients’ field executives are always on the lookout for testing machines that can be carried around easily.”

– Vijay Rai

2. Fischer's XAN-500 handheld equipment.

Manufacturing Today | NOVEMBER 2017

39

FEATURE TESTING & MEASUREMENT

T&M INDUSTRY TRENDS Nearly every industry requires T&M solutions. Heavy consumers include sectors such as aerospace and defence, automotive and locomotive, broadcasting, chemicals and fertilisers, consumer electronics, education and research, environmental sciences, pharmaceuticals, oil and gas, steel, telecommunications, the manufacturing sector in general, and utility—to name a few. Some of the key business trends that will reshape the future of the T&M industry are listed below.

1) Infrastructure investments will drive future growth Initiatives such as Digital India and Make in India are already proving beneficial to sectors such as aerospace and defence, electronics, and telecommuniTable 1

Taxes subsumed in GST Previous Tax

Replaced by

Excise duty Additional Duties of Excise (ADE)

“Customers can see data in tabular format, check historical trends, download as excel or export the file to any enterprise software platform for analytics and decision making.”

– Haren Shah

Surcharge & Cess

CGST

Service Tax VAT Purchase Tax Luxury Tax

SGST

Entry Tax Surcharge & Cess

3. Table 1: Taxes subsumed in GST. 4. Meco's power & harmonics analyser (model 5850) in use.

Central Sales Tax Special Additional Duty (SAD) 3

Countervailing Duty (CVD)

4

40

NOVEMBER 2017 | Manufacturing Today

IGST

cations. The infrastructure push given by the central government is being seen as another bright spot.

Under Sagarmala, the government plans to develop 14 Coastal Economic Zones (CEZ) while mobilising investment of Rs 4 lakh crore in India's infrastructure sector. Similarly, under Bharatmala, with an investment of Rs 6.92 lakh crore by 2022, government plans to build a 83,677 km highway network covering the length and breadth of India. Many large-scale infrastructure projects are under-way, simultaneously. These include the Arunachal Pradesh railway network, Chardham highway project, Gujarat-Gorakhpur gas pipeline, inland waterways, Mumbai trans harbour link and Shivaji memorial, Ahmedabad-Mumbai bullet train, Rashtriya Rajmarg Zila Sanjoyokta Pariyojna, Setu Bharatam, Ude Desh ka Nagrik (UDAN), bridge over Chenab (world’s highest bridge), to name a few.

The government’s infrastructure focus is expected to trigger a massive growth in the economy, which, in turn will drive demand for T&M products and services, affirms Chaudhary of PwC India.

2) Compliances will ensure sustained demand Compliance with rules, regulations and standards is another factor assuring sustained demand for T&M products and services. The central and state governments have made energy conservation a priority area. The state government bodies such as Maharashtra Energy Development Agency (MEDA) and Tamil Nadu Energy Development Agency (TEDA) have issued energy conservation guidelines for businesses. Compliance with these has created the need for power and harmonics testing and analysis equipment for usage validation, characterisation, performance, and conservation, informs Thirunavuakarasu T, GM, sales, Microtek Instruments.

Compliance with global safety standards (such as IEC standards) is another factor delivering sustained demand for T&M solutions, while encouraging the organised sector. “Large enterprises follow strict procurement policies about buying only from the brands whose equipment meets global standards.

This discourages the cheap alternatives that do not meet safety and engineering quality norms,” Thirunavuakarasu T says.

3) Consolidation via mergers and acquisitions (M&A) Besides its use in day-to-day business and equipment replacement phases, T&M plays a crucial role in helping organisations win a competitive advantage. The fragmented nature of the industry and the strategic nature of T&M as an enabler for innovation have led to many M&A (See Table 2).

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Acquirer

Target

Target’s key business

Flagship/Speciality

Month and Year

Spirent Communications Plc

Testing Technologies

Automation software quality tools

TTworkbench

March 2016

Averna

Test & Measurement Solutions, Belgium

Multi-disciplinary T&M solutions for production

Business footprint in Europe

---

Teledyne LeCroy, Inc.

Frontline Test Equipment, Inc, USA

T&M instrumentation

Market leader in wireless April 2016 protocol analysis test tools

Teledyne LeCroy products, the Inc.

Quantum Data, Inc.

Test tools for digital video technologies

HDMI and SDI signal generators and protocol analysers

---

Platinum Equity

Electro Rent Corporation

---

---

---

Network planning, optimisation, and service assurance solutions

---

August 2016

RF performance test solutions

---

September 2016

2. With quality

importance of replacement demand cannot be ignored.

3. MotulTech offers new technologies to Ascom Network Testing (TEMS) InfoVista customers in line with their requirements and expectations.

Anritsu Corporation Azimuth Systems, Inc., USA

EXFO Inc.

Absolute Analysis Inc.

Radio frequency (RF) testing for fibre- --based radio access networks (RANs)

October 2016

ElectroRent

Microlease

Testing and measurement equipment --rental, sales, and asset management services

November 2016

Rohde & Schwarz Cybersecurity

DenyAll, Paris

---

European cybersecurity market

December 20, 2016

National Technical Systems

Fiarex of Chambly, Quebec

Dynamic and environmental testing

---

---

National Technical Systems

CEM of Boucherville, Quebec

Electromagnetic compatibility and interference testing

---

---

Bureau Veritas, France SIEMIC, Inc.

Electrical and electronic equipment

---

---

Keysight Technologies Inc.

Ixia

Testing, visibility, and security solutions for physical and virtual networks

---

---

Schneider Electric

Applied Instrument Technologies (AIT)

Online process analysers for the hydrocarbon, petrochemical, chemical, pharmaceutical and steelmaking industries

---

October 2016

Boeing

Liquid Robotics

Autonomous maritime systems

Wave Glider ocean surface robot

December 2016

Source: Company press releases While the M&A activity largely played out in the USA and UK, several deals were of global nature.

Given the strategic importance of the sector and innovation happening within the T&M space, the M&A activity will continue in 2018.

4) Remote monitoring and management The T&M equipment has undergone multiple stages of evolution. The first phase came when manual monitoring of parameters and information gathering was gradually replaced by automated data capture on handy clamp-on type instruments.

“The emergence of the new control system architecture, supervisory control and data acquisition

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FEATURE TESTING & MEASUREMENT

Table 2

5

(SCADA) facilitated acquisition of data via GPS/ GPRS and allowed for regular monitoring of aspects — such as energy consumption — at several locations. It can be useful even for building management system, surveillance, and energy audit,” informs Haren Shah, senior marketing executive, Meco Instruments.

Shah cites an example of Meco’s product, Meco MFM, which is powered by Modbus protocol and comes with power meter software. Installed at several bank branches, ATMs, commercial and industrial locations, departmental stores, malls, and hospitals in India, the product’s T&M results can be viewed on PC with graphical user interface. “Customers can

5. Table 2: Mergers and Acquisitions (M&A) in the Testing & Measurement (T&M) industry.

Manufacturing Today | NOVEMBER 2017

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FEATURE TESTING & MEASUREMENT 6

see data in tabular format, check historical trends, download as excel or export the file to any enterprise software platform for analytics and decision making,” Shah informs.

“But as AI revolutionises the domain, decisions will be faster and more accurate.”

– Farook Merchant

“Nearly all consumer targeted industries will create an innovationdriven demand for T&M equipment, software and services in the years to come.”

– Priyesh Chaudhary

6. Even as advanced technologies continue to drive business growth, the future of the T&M sector will be defined by innovation.

42

5) Fast track digitalisation The next phase of evolution in the T&M space is coming from rapid digitalisation nearly in every industry. The technologies of cloud, analytics, and artificial intelligence (AI) are being explored, tested and adopted by many leading organisations. With cloud computing becoming competitive, companies do not have to pay for expensive software or instrumentation, especially for analytics, any more.

Cloud model helps achieve optimal utilisation of resources while trimming software costs — from a few lakhs to a few thousands. “Earlier the expensive instrumentation tools required hiring the services of special laboratories. Now, these are available from cloud vendors,” observes Messung Group’s Merchant. Stating that cloud and AI will soon dominate all aspects of engineering, he explains: “T&M pertains to three areas — testing and measurement, monitoring, and control. Of this, the control function depends on manual analysis of data today. As a result, the decision making is a tad slow. But as AI revolutionises the domain, decisions will be faster and more accurate.”

Mobility is another trend in the industry today.

While customers already use mobile devices to view analytical reports, T&M vendors can be seen employing mobility to make their equipment userfriendly. Vijay Rai, marketing Head, Fischer India, shares an example of his company’s small form fac-

NOVEMBER 2017 | Manufacturing Today

tor precious metal testing and coating thickness instrument, Handheld XRF. Packaged in the form of a lightweight suitcase, the instrument is fitted with a tablet for quick reading and reporting. “Our clients’ field executives are always on the lookout for testing machines that can be carried around easily. The lightweight Handheld XRF that comes with a tablet addresses that need effectively,” Rai says.

INNOVATION IS THE FUTURE Even as advanced technologies continue to drive business growth, the future of the T&M sector will be defined by innovation. To stay competitive, companies launch new (and better) products. Every new product has to undergo R&D and testing. The car companies in India, for example, witness a jump in their revenues upon introduction of models with innovative, customer-friendly features. Similarly, in the pharmaceuticals sector, while the generics business does require T&M equipment, the need for testing substantially grows when companies invest in intellectual property through new drug discovery.

“Nearly all consumer targeted industries such as automobile, mobile and electronics, home appliances, and pharmaceuticals, will create an innovation-driven demand for T&M equipment, software and services in the years to come,” says Chaudhary of PwC. He believes that irrespective of the blips in the recent past, there is growth ahead for the Indian economy. “All major global forecasts indicate that India’s long-term growth story remains intact. We are looking forward to at least a decade of strong growth in India. This, in turn, will also help the T&M sector in a big way,” Chaudhary says.

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EVENT REPORT BFW - MANUFACTURING DAY 1

DRIVING CHANGE

BFW PRESENTS MANUFACTURING DAY THREW UP SOLUTIONS TO THE MYRIAD ISSUES THAT COMPANIES FACE IN TODAY'S TIMES.

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THERE'S A KIND OF DISCREET CHARM TO a factory floor. But not many understand that, or are expected to. Even to most of those working on a shop floor, it is possible that life could be just a routine. Few understand the magnitude of their work and the workplace they inhabit. Manufacturing may be the largest contributor to the economy of India in terms of GDP and in other places in the world, but, perhaps, this is the only sector that is least celebrated. So when Bharat Fritz Werner (BFW) endorses

Manufacturing Day for the second year in a row, it is food for thought. Though Manufacturing Day globally is celebrated on October 6, BFW presents Manufacturing Day along with Manufacturing Today magazine was held on October 5 at Hotel Westin Gurugram.

The day-long event was well attended and there were interesting discussions and presentations that delegates heard from well-known industry personnel. There was a surprise treat in store too from an exemplary gentleman who has single-handedly

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EVENT REPORT BFW - MANUFACTURING DAY

GOLD PARTNERS

SILVER PARTNERS

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3

changed the course of an entire region and inspired many after him.

The session began with Bibhor Srivastava, group publishing director, ITP Media (India) thanking the guests for their willingness to spend time to attend an event while introducing Manufacturing Day. He said, “Manufacturing contributes 60% to the global

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AN EVENT BY

GDP. There are only 6 countries in the world that have taken to manufacturing and they have met with remarkable success in terms of infrastructure development, job creation and contribution to GDP. ITP Media (India) is happy to announce our association with BFW presents Manufacturing Day,� he added.

This was followed by the inaugural lighting of the lamp by some of our distinguished dignitaries Kishore Jayaraman, president, Rolls Royce, India & South Asia; Sonam Wangchuk, Engineer, Innovator & Education Reformist; Shailesh Sheth, corporate strategy advisor; KS Malik, operating head & GM power train, Honda Car India; and Ravi Raghavan, MD, BFW. Welcoming the guests, Raghavan said that manufacturing has always fascinated him as a student.

1. A rapt audience watches the ongoings on stage.

2. Sonam Wangchuk received a standing ovation after his soulful talk.

3. Bibhor Srivastava welcomes the delegates.

Manufacturing Today | NOVEMBER 2017

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EVENT REPORT BFW - MANUFACTURING DAY

7

4

8 5

6

4. Dignitaries light the inaugural lamp.

5. Madan Mohan Vundavally highlights Siemens' role in digitalisation of the factory.

6. Chief Guest Kishore Jayaraman highlighted some of the novel aspects of the modern factory.

7. Ravi Raghavan spoke about the importance of manufacturing.

8. Shailesh Sheth listed out the challenges of a VUCA world.

46

“Manufacturing is all around us. It may not sound attractive, but it’s the foundation of everything on which progress is based. It also pushes the boundaries of science to what we call progress. Manufacturing Day, a BFW initiative, is about celebrating the achievements of this wonderful understated industry.

It is a time for captains of the industry to reflect, consider the challenges ahead and find the means to add value. As industry leaders we believe in knowledge creation to take the industry forward. The three key areas that we feel are important are the increasing role of digitisation in factories; the challenge of training and re-skilling people; and, lastly, manufacturing innovation.”

A MEETING OF MINDS Delivering the keynote address, Chief Guest Kishore Jayaraman pointed out that advancements in the industry have accelerated so much that with Industry 4.0 now in play, the world is all about storage, computers and data. Data and connectivity have grown exponentially and this is compelling companies to relook at their manufacturing processes, the way we allocate machines and interface with the machines, and humans and machines, and all these are being scrutinised closely. Firms need a new kind of energy to embrace changes and those that do not do so

NOVEMBER 2017 | Manufacturing Today

are going to be left behind. “Robotics was a small niche in the 70s and auto companies were the first to embrace it. But can these machines teach humans to avoid errors in quality? Sig Sigma is passé.

The aerospace industry is looking at Seven Sigma and if this is not implemented then there could be fatalities. Everything now boils to being more quality conscious. Distributed manufacturing is another trend and this means creating ecosystems, which is going to be built based on just-in-time and customer requirements, and creativity. We need to be more productive,” he added.

The highlight of the day was Sonam Wangchuk who agreed to travel all the way from Ladakh and has been an inspiration to thousands. Speaking from the heart, Wangchuk elucidated that digitisation for manufacturing is important but when one is surrounded by young people, it is important to bring them up to date in the real world than the virtual.

“As an engineer, I have been fascinated with the educational system and after my own education decided to teach. The students are bright, but there are problems in the system. The landscape of our state is different and so are the needs. Ladakh looks inhabitable, but there are green oases carved by our students. People here have enriched nature, and the civilisation has actually thrived. The challenge for the students was the ineffectual syllabus and a language that did not make sense to them. Though the students are bright, the system was not supportive. We then did some introspection, and decide to change the system. We set up Students' Educational and

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EVENT REPORT BFW - MANUFACTURING DAY

9

Cultural Movement of Ladakh (SECMOL) in 1988 and understood that we need to teach students the way they were meant to be taught. Incidentally, we were also keen to maintain the natural resources and so the school we have set up is completely solar powered, uses zero-energy, is built with mud, as it was important that we build with materials that are easily affordable and available. We devised a way that would make the students productive and also fit for the material world.”

The creator of the Ice Stupa was a veritable source of knowledge and humanity. Adopting science as the backdrop and having understood long ago that innovation need not come at a heavy price, Wangchuk received a standing ovation for his creativity and the novel way he has uplifted an entire community of people who were otherwise destined to a life of coarse living and anonymity. Along the way he has won much recognition and grants that he has utilised for further development of the community.

Manufacturing as a sector needs as much indepth knowledge as it can gather. Speaking on digitalisation, Madan Mohan Vundavally, head of product portfolio management & application support, Siemens, highlighted that an increasing number of devices are connected to the internet today. In 2008, the number of devices connected to the internet has surpassed the number of people on Earth. There’s an estimate that by 2020 about 40-50 billion devices will be connected to the internet. “Industry 4.0 has four guiding principles: Interoperability, Information transparency, technical assistance, and decentralisation. If these are followed, then we are already on the way to Industry 4.0. With products being made faster, one has to find innovative ways to reach the market faster. Siemens has a host of applications that can ease data gathering for manufacturing companies,” he added.

SMART DISCUSSIONS This session was followed by the first panel discussion, Factories of the Future: Productive Shop Floor.

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10

11

Moderated by Jayashree Mendes, editor, Manufacturing Today, the panellists comprised Mahesh Kaikini, AVP, plant head, Hero MotoCorp; Madan Mohan Vundavally, head of product portfolio management & application support, Siemens; V Ranganathan Iyer, group CIO, JBM Group; and Anil Singh, plant head, AkzoNobel.

Replying to the question on automation, Kaikini said that manufacturing has seen a sea change.

From 400 motorcycles per day, his company now makes 7,000 motorcycles within the same infrastructure. “It is important to understand the value chain of manufacturing. Garnering flexibility has

9. The first panel discussion detailed what Factories of the Future will bring in.

10. BFW has been supporting the team of Ashwa Racing for some time now.

11. The team from Ashwa Racing make a presentation.

Manufacturing Today | NOVEMBER 2017

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EVENT REPORT BFW - MANUFACTURING DAY

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13

12. The second panel discussion had its theme as Innovation led Manufacturing Practices.

13. Sanjay Bhan (centre) felicitated Ravi Raghavan and Praful Shende of BFW.

48

been the biggest advantage. The level of automation would depend on the output one is looking at and the performance. One needs to adopt a mixand-match and look keenly at the processes before venturing into advanced manufacturing and adopting automation,” he added.

Speaking of matching to OEM expectations, Iyer of JBM said that a strong facility is a must-have. Information flow from the tier-I supplier to the OEMs facility is another. And, importantly, one must not compromise on the quality. Quick deployment is what everyone wants and JBM is looking at building this up. Knowledge transfer between OEMs to Tier-I are a common occurrence. Singh of AkzoNobel said that automation may not have been state-of-the-art in his plant, because the nature of the products did not demand it. However, the company has realised with global procurement and supply, it has become necessary to have connected plants and deploy automation to the fullest extent as required. Vundavally spoke about the three kinds of disruptive technologies in the world, such as 3D printing, advanced robotics, and digital twin technology.

NOVEMBER 2017 | Manufacturing Today

Few can predict what manufacturing holds in the future. In this light, Shailesh Sheth, corporate strategy advisor, took a holistic view of competitive manufacturing and suggested that one needs to find a roadmap about implementing it within companies. “An uncertain future in the VUCA world is compelling people and companies to seek out novel ways of doing business. Volume manufacturing of standardised parts is going to be disrupted by small batch sizes. Long time to market is the next issue.

Contract labour and permanent jobs are classical conflicts now, but the next generation workforce is going to be extremely internet savvy and therefore the factories will have to undergo changes. Supply chains are going to become major issues because they are unable to keep pace with the growth in the market place and distributed manufacturing is coming in at a larger pace and that disrupts the well integrated factories,” he added.

The answer to that, Sheth said, is to think global, act local. Production systems will determine business strategy and makers will have to understand market needs and find ways to produce those products. It is the responsibility of the production managers to look into the possibilities and scan the future and make capital investments which are likely to remain relevant for the foreseeable future. I don’t think we can wait five years to know what data we require, we should know it today. He eded with saying that companies should not adopt automation blindly.

WORKING OUT NEW POSSIBILITIES Post-lunch was time for the second panel discussion. With the theme of Innovation led Manufacturing Practices, this discussion was moderated by Abhijit Majumdar, executive director, consulting PwC, with panellists such as Sanjiv Kumar Jain, group CITO, Spark Minda; L Krishnan, MD, Taegutec India; and MK Agrawal, senior VP, DS Group.

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EVENT REPORT BFW - MANUFACTURING DAY

14

Majumdar asked the panellists to list out their thoughts on innovation led manufacturing practices.

Krishnan replied that meeting the abilities of countries like Korea and China in cutting tools would take years for India. “They have outpaced others in terms of innovations, technology and automation. We need to start investing and though the returns may not be high early on, consistency, productivity, maintaining quality parameters will get us there,” he added.

Agarwal said that his company has constantly looked at ways to offer customers innovative products through novel packaging methods. "Retaining quality of confectioneries are constant challenges and we have always managed to find solutions. Innovation in manufacturing calls for thinking. In today’s world one has to think of new methods to offer customers and add value to their expectations," he said.

For Jain, IT was the lynchpin that supported manufacturing. Today the talk is about connected factories, collaborative designs, all which fall under the IT portfolio. “Automation is bought in with a view to reduce outlay on wages. Design systems were isolated from mainstream earlier, but today manufacturers believe in designing and building. Digitisation and security will matter most to companies,” he added.

The last session of the day was the third panel discussion, Talent & Skill Development for Manufacturing. Moderator Bibhor Srivastava, group publishing director, ITP Media Group, engaged the team of panellists and the audience alike by addressing issues of skilling and re-skilling. The esteemed panellists included Ravindra Dayal, executive director, Maruti Suzuki; Rajeev Sharma, VP manufacturing, Honda Siel; APS Gandhi, VP, supply chain, Daikin Air-conditioning; KS Malik, operating head & GM power train, Honda Car India; Manish Sinha, head, IT, Vectus; and Rajeeva Lochan Sharma, sr. plant director, Barco Electronics.

Srivastava asked the panellists to explain where

www.manufacturingtodayindia.com

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India stands in talent and skill manufacturing and where we want to be. Malik said that industries are focussing strongly on this and organising trainings and skill upgradation. HCIL has 30 training modules for its staff, and 11 at the global level. The aim is to make this generation future ready.

Sharma said that Honda is a philosophy-driven company. “The first thing we are taught is that business is secondary, while respect for the individual is very important. We try to enjoy manufacturing. We have two training modules; one is behavioural and motivational and second is technical.

14. The third panel discussion elucidated the need for training and re-skilling employees.

15. N Hariharan of BFW explains the finer points of the company's advanced machines.

16. Umesh Dixit of BFW thanks Nikken for being a partner.

Manufacturing Today | NOVEMBER 2017

49

EVENT REPORT BFW - MANUFACTURING DAY

21

17

18

17. Shailendra Mathur of BFW thanks the team from Schneeberger.

19

18. Rajesh Agte of BFW felicitates Madan Vundavally of Siemens.

19. Praful Shende of BFW thanks Mitsubishi Electric India for teaming up for this event.

20. HN Panchamia of BFW felicitates H A Udaya, MD, U-Tech Associates (Deta International).

21. Sanjeev Kumar of BFW wishes Taegutec India for partnering for Manufacturing Day.

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NOVEMBER 2017 | Manufacturing Today

Sinha’s company decided to create an app that will bridge the gap between the company and the customer or the plumber who can use this to his benefit. The idea was to create a brand image and create trust between the end user and corporate.

Gandhi believes there is much gap between the institutions and the corporate world. “We have created centres of excellence where we are creating model labs and students can undergo new technology trainings. We offer soft skill trainings too. The other challenge is dealers and we train them too. We also bring students from different universities to our factory and train them,” he said.

Dayal said that what matters to shop floor employees most is earning a decent salary and perks, while being able to maintain work life balance. Considering that Maruti Suzuki has new models coming up on a regular basis, it is imperative that it starts customer education training. “We often notice that there is a high turnover of workers and find it even more important to train them so that they stay longer with us. We support our dealers as well with adequate training,” he added.

Sharma of Barco added that in his company reskilling plays a more important role than mere training. “Our talent and skill management are around two dimensions, one is engagement and second is enablement. We have our own universities which create internal modules for training. For the last 4-5 years, we have also been organising behavioural training. To break the monotony, we started job rotation,” he ended.

In keeping with tradition, the event also offered an opportunity to engineering college students from RV College of Engineering, Bengaluru. The bright youngsters are part of the Ashwa Racing Team and presented their innovative ideas to an attentive audience.

The event ended with BFW felicitating its six partners, while Sanjay Bhan, director, ITP Media (India) felicitated Raghavan and Praful Shende, chief sales & marketing officer, BFW. Raghavan thanked the delegates for their patience and Bibhor Srivastava delivered the Vote of Thanks.

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HOW PRASAN FIRODIA IS TAKING FORCE MOTORS BEYOND COMMERCIAL VEHICLES

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FEATURE CEMENT

CONCRETE PROPOSALS

1

THE SOMBRE GREY OF CEMENT SEEMS TO match the moods of its manufacturers going by market behaviour. Data by the Ministry of Commerce & Industry shows that cement production has been falling consistently last few months. Production growth has gone negative since December 2017 and it hasn’t managed to right itself since then and grow. This should be a cause of worry for cement manufacturers, right? Wrong. Although they are not gung-ho, they are not subdued either. If one goes by the long-term plans that cement makers are building

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up, it only proves their faith in dispelling the transitory conditions that a VUCA world brings in. However, for this faith to be reaffirmed, going forward manufacturers will need assurance of availability of sand and aggregates that have been impacting growth.

Sectors like steel, cement and aluminium are most volatile. India is the second largest cement market in terms of both, production and consumption. The cement industry is driven majorly by housing and infrastructure sector. Interestingly, the government too has decided to chip in to help out. Since the last

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FEATURE CEMENT

CEMENT MAKERS REFUSE TO BUCKLE UNDER THE TOUGH MARKET CONDITIONS. THEY ARE MAKING PLANS OF THEIR OWN TO SET THINGS ARIGHT.

BY JAYASHREE MENDES

“Concrete is an environmentally-friendly building material during the entire span of its life cycle, until the building is demolished.”

– Kishore Pate

year, more roads & highways constructed are made of cement instead of the ubiquitous asphalt. A few months ago, the government allocated a budget of Rs 3.96 lakh crore to the infrastructure sector. The adoption of cement instead of bitumen for the construction of all new road projects has been mainly due to the durability and affordability of cement as compared to bitumen. This has partly renewed the fortunes of the cement industry. The next ray of light for the cement industry is expected to come from the Union Budget of 2018-19 if the government allots a

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significant budget to building roads & highways and irrigation projects.

“The Dolvi plant is further expanding to 4.5MTPA by 2019 to cater to the demand in the region.”

– Parth Jindal

BUILD THEM UP Manufacturing companies are leaving no stone unturned knowing that the industry will see a spike in sales. Consumption of cement is estimated to grow from 265 million tonnes (MT) in fiscal year 2017 to 322MT in FY20, according to a recent report by Nomura. Having anticipated this, the cement division of the Sajjan Jindal-led JSW Group is also in-

1. Cement is being widely used instead of bitumen for the construction of all new road projects. This is because it is durable and affordable as compared to bitumen.

Manufacturing Today | NOVEMBER 2017

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FEATURE CEMENT 2. A crusher is important since most of the raw materials have to be crushed before being used to process cement, such as limestone, clay, iron ore and coal, etc.

creasing capacity at its Dolvi plant from one million tonnes per annum (MTPA) to 2.2MTPA by 2018, and will further expand it to 4.5MTPA by 2019. The company has commenced manufacturing of Concreel HD cement at its Dolvi unit in Maharashtra, a move that will help the company expand its retail presence in West India. Parth Jindal, MD, JSW Cement, said, “Concreel HD has had roaring success in Karnataka, Andhra Pradesh, Telangana, Tamil Nadu and Kerala. Now it will make its way into the Western states of India starting with Maharashtra.

The Dolvi plant is further expanding to 4.5MTPA by 2019 to cater to the demand in the region. We are on track to meet the vision of 20MTPA by 2020.”

Another company that has worked at long-term plans is the CK Birla group firm Orient Cement. It is aiming for 15MTPA by 2020, and expects to reach 12MTPA this year alone, after the acquisition of Jaypee Group's assets. With three manufacturing units — Devapur (Telangana), Chittapur (Karnataka) and Jalgaon (Maharashtra) — the company has an aggregate manufacturing capacity of 8MTPA with a clinker manufacturing capacity of close to 6MTPA. What

buoyed the company's ambition is its acquisition of two entities, Bhilai Jaypee Cement and Nigrie Cement Grinding Unit, from Jaypee Group firms for a total consideration of Rs 1,946 crore. Presently, it sells cement predominantly in Maharashtra, Telangana, Karnataka, Andhra Pradesh, and Madhya Pradesh, besides Chattisgarh, Gujarat, Goa and Tamil Nadu.

Wonder Cement, a part of RK Marble Group, is also planning to invest around Rs 2,500 crore for setting up three units in Dhule in Maharashtra, Madhya Pradesh and Haryana and increase capacity to 11MTPA in next three years. JC Toshniwal, MD, Wonder Cement, said, "We have 5.2MTPA installed capacity and hope to increase to 11MTPA by 2020.

We are setting up two million tonne grinding unit at Dhule in Maharashtra, for which we have received environment clearance and commence production by June 2018." The company is also setting up two more grinding units at Madhya Pradesh and Haryana having around 4MTPA capacity, which will be ready by 2020, alongwith, adding second line of production at the existing unit at Rajasthan. The Maharashtra project will cost Rs 450 crore, while

2

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FEATURE CEMENT 3

THERE IS A TREND TO MAKE CONCRETE FROM SLAG CEMENT AND FLY ASH, BOTH OF WHICH ARE GENERATED BY STEEL MILLS AND POWER PLANTS.

“We have achieved a three-pronged sustainability approach by conserving natural resources, creating a greener product and fulfilling customer needs.”

– Ajay Kapur

MP and Haryana units will need funding of around Rs 1,900 crore.

AHEAD OF THE PACK With the term 'concrete jungle' having become too popular and widely used, it is easy to overlook that this building material has been around for so long for very good reasons. Also, it has some excellent attributes which make it very important in today's context. Kishor Pate, CMD, Amit Enterprises Housing, says, "It is easy to produce and use, but the fact is that concrete is an eminently environmentally-friendly building material during the entire span of its life cycle, beginning from its production as a raw material right until it is demolished.

This renders it the perfect and obvious building option for the construction of sustainable homes."

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“We have 5.2MTPA installed capacity and hope to increase to 11MTPA by 2020.”

– JC Toshniwal

3. Most Portland cement is made in a rotary kiln. This is a long cylinder rotating about its axis once every minute or two.

Manufacturing Today | NOVEMBER 2017

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FEATURE CEMENT 4

5

4. A diagram of the dry process of making cement.

5. A cement slurry being mixed at a cement manufacturing facility, in preparation for being sent to the kiln.

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The cement utilised in concrete is sourced from limestone, which is an abundantly available mineral that will literally never deplete. However, there is also a trend to manufacture concrete from materials such as slag cement and fly ash, both of which are generated by industries like steel mills and power plants as waste byproducts. From the point of recycling of existing resources, concrete is therefore a real boon to the planet.

Cement manufacturers also have a strong R&D str ategy in place. For instance, the Aditya Birla Science

NOVEMBER 2017 | Manufacturing Today

and Technology Company (ABSTCPL) works in association with the cement business research and development team at Khor, in Madhya Pradesh. The overall objective is to improve the profitability of the business.

Enhancing productivity, new product development, reducing energy consumption and environmental impact, and technology revamping are the focus areas for cement research. The research strategy involves application of advanced science, technology and engineering platforms comprising fundamental process analysis, computational fluid dynamics, process modelling and simulation, process control, process development and laboratory experiments.

Early this year, Ambuja Cement (ACL) launched a highly superior cement, Ambuja Compocem. The company’s Chhattisgarh facility becomes the first cement plant in India to develop a composite cement after rigorous research of a year-and-a-half. The new offering – a combination of cement, fly ash and slag – has been introduced in Bihar and Jharkhand markets and thus opens yet another avenue of sustainable products in the construction industry. Ajay Kapur, MD & CEO, ACL, said, “Ambuja Compocem is another breakthrough product innovation from our stable.

This product was developed in our laboratory by the product development and innovation team. With this, we have achieved a three-pronged sustainability approach by conserving natural resources, creating a greener product and fulfilling customer needs for a

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FEATURE CEMENT 6

superior performance product. We call this approach – delivering True Value.”

Incidentally, in India, the Bureau of Indian Standards (BIS) has approved the usage of copper slag in various grades of concrete as a partial substitute for river sand and m-sand. In concrete preparation, the copper slag is approved to be used to the extent of 35% to 50%, depending upon the nature of the work. Copper slag is a key byproduct in the manufacturing process of copper, with very similar physical properties of conventional sand. Globally, copper slag is used in cement manufacturing, cement concrete applications, bricks and pavers manufacturing, land filling and abrasive applications.

Cement production process releases greenhouse gas emissions, both directly and indirectly. A lot of carbon dioxide (CO2) is emitted from burning fuel and the conversion of limestone to oxide during cement production. The search for alternatives has led to the pathbreaking technology for the development of Limestone Calcined Clay Cement (LC3), an alternative building material that lowers CO2 emissions and energy consumption. It is cheaper to produce, requires low capital investment and has the potential to become the best sustainable substitute for Or-

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dinary Portland Cement (OPC) or the fly ash-based Portland Pozzolana Cement (PPC). In India, pilot production of LC3 was completed in January 2015.

Development Alternatives (DA), one of India’s oldest social enterprises that focusses on sustainable development, collaborated on an LC3 technology development project with Switzerland-based École Polytechnique Fédérale de Lausanne (EPFL), which conducted the initial research.

LC3’s unique selling point is its composition: 50% clinker, 30% calcined clay, 15% limestone and 5% gypsum. The clinker content is about half as much as in OPC (which has 95% clinker), but the ‘secret sauce’ is calcined clay, which is waste china clay abandoned by mine owners for its poor quality. To produce LC3 cement, this waste is calcined at 7508500 Centigrade — a process which requires half the energy used for clinker production and can be carried out using existing rotary kilns. The limestone used is again of low grade, and can be substituted by waste material from marble and kota stone, a fine-grained variety. As a sustainable, viable alternative to cement, LC3 has enormous potential. It can be easily replicated anywhere in the world, wherever china clay is available in abundance.

6.The wet process for manufacturing cement.

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INTERVIEW 1

STRATEGIC MOVES

SHRIDHAR UPADHYAY, CHIEF SUPPLY CHAIN OFFICER, GATI, HAS COMPELLING METHODS TO REDUCE COSTS.

1. An inside view of the warehouse that Gati owns. Advanced WMS plays a very important role in managing SKUs.

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At a time when logistics and supply chain is the most critical component for manufacturing companies, what is the kind of analytics you apply to meet demand? How do you work this out for different sectors such as Pharma, FMCG, electronics, cement, and heavy engineering, among others?

With increase in demand for efficient management for supply and manufacturing, we have the best capable in-house solutions, engineering design and analytics team to move from macro level analytics to micro level analytics where every individual organisations requirement and working pattern is analysed against the actual needs of client supporting them to drive for profitable innovation.

NOVEMBER 2017 | Manufacturing Today

Our capability team focuses majorly on improved revenue techniques by studying market consumption patterns with predictive analytics, making decisions to elevate supply chain responsiveness by generating real time controlled metrics providing flexibility to client to adopt dynamic change in requirement of their operational process.

As each sectors' definition for logistics and supply chain differs, our team works on a combination of Built-to-Suit (BTS) Warehousing or Shared Warehousing. In cases where distribution plays a role, we have a combination of Express distribution network, Customer Specific Dedicated Network with first mile and last mile milk-run system in place to ease and execute the business of different sectors.

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INTERVIEW

We are also targeting to fine tune cost fluctuations by using effective and integrated systems of ERP, forecasting and analytical tools for material planning and real time routing system for client by considering their network strategy as well as real time analytics of supplier performance to provide productive results.

Warehouse Management Systems (WMS) is a unique system. Could you tell us in detail about the system you have set up and how you manage it?

In an era of e-commerce where responsiveness to customer demands has become the mantra for measuring the supply chain efficiency, logistics providers have to address bottlenecks like global inventory visibility, integrated tool for efficiency monitoring online and a technology framework that facilitates easy integration and business logic extensions to meet changing process requirements by providing centralised control over the supply network as below: • Global view of inventory visibility: Our ERP provides real-time visibility of inventory at our own and external locations with an advanced search.

• Integrated tool for efficiency monitoring online: Configure the tasks you need to execute and determine what users are allowed to perform them with real-time visibility to task execution status.

Automatic recording of productivity based on tasks performed are also done. Also Dynamic computation of SAM (Standard Allowable Minutes) based on historical task information.

• Easy integration: Through a SOA architecture that allows for seamless integration to participants and external systems. Reduced integration cost to external applications such as ERP, material handling systems.

Going forward, what are some of the ideas you plan to implement in improving warehousing facilities? What are some of the benchmarks set by international companies?

With companies moving towards lean manufacturing, GATI, as a major service provider, is also moving towards lean warehousing. This is how we do it: • Focus on flow and waste elimination: We already have a process and setup in place for enhancing to flow and efficiency from dock to stock and from pick to manifest. We have real time dock allocation, real time pick task mapping with idle pickers, pack resource allocation through our ERP which in return eliminates the waiting time of material and improves resource utilisation.

• Focus of transparency and visibility: As already mentioned, we have an integrated best-in-class ERP with forecasting and analytical tools to en-

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2

sure real time visibility across the entire supply chain process initiating from demand analytics to last mile fulfilment.

Overall, what would you term as your USP in terms of fulfilment and quick turnaround?

It is a universally acknowledged fact that the ‘logistics costs as percentage of national GDP is very high in India (13%-14% of GDP) when compared to other developed nations (8%-9% of GDP). So reduction in logistics costs would bring down prices of products which will stimulate the growth of our economy.

With GST in place, taking advantage of the biggest tax reform of India and immense reach that GATI has, client specific integrated supply chain provided by multi-model connectivity and advanced ERP will be our USP to customers.

If you had some suggestions to make to authorities, what would be on your wish list for better supply chain?

Infrastructure: The Indian logistics sector faces infrastructure as its biggest challenge. Bad road conditions, inadequate air and seaport capacities and lack of development of modes of transports like railways and alternates like inland water transport and tier 3 link with commercial aviation has to be addressed with utmost priority. Due to the infrastructural bottlenecks, costs per transaction for the Indian logistics sector is very high compared to those in developed markets.

E-Way Bill: We believe that the initial draft e-Way bill rules did not recognise the factual process involved in time-sensitive multi-modal transportation. We believe that a desirable GST structure will support reduction of bottlenecks and therefore we urge the regulators to take cognisance of unique features of the logistics industry in formulating final rules.

Shridhar Upadhyay, chief supply chain officer, Gati, has 30 years experience in operational efficiency, SCM, planning, and focuses on results. He joined Gati in 1995 and has grown up through the ranks, handling various portfolios by displaying leadership, communications, strategic thinking, and business acumen.

2. Gati already has a process and setup in place for enhancing to flow and efficiency from dock to stock and from pick to manifest.

Manufacturing Today | NOVEMBER 2017

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