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  1. Home
  2. Interviews
  3. Automation, digitisation will drive India’s manufacturing sector: B C Rao

Automation, digitisation will drive India’s manufacturing sector: B C Rao

30 January, 2017
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By Niraj M Wanikar, Chief Editor, CNCTimes.com, 2017-01-30 20:06:00

KENNAMETAL is a US-based company specializing in the ware resistance and cutting tools. It operates in 60 countries. India is quite a strategic location for the company because it is the most emerging market. Kennametal has its core business of cutting tool and the infrastructure product portfolio. In the cutting tool industry, it has two brands working under it—KENNAMETAL and WIDIA.  KENNAMETAL entered in India in 2003 with the acquisition of WIDIA India Ltd. Kennametal has invested substantially in the area of safety, technology upgrade and modernisation of the facility to bring the state-of-the-art products and value added solutions for the Indian customers. For KENNAMETAL, India is distinguished from domestic marketing, manufacturing and has global engineering center where around 180 engineers work in the engineering and R&D departments

As Managing Director of Kennametal India, Mr. B. C. Rao is optimistic about company’s growth in this part of the world. He shares his views with CNCTimes.com during a small conversation.

The Excerpts:

What product line you offer and what are their industrial applications?

In India, automotive sector plays a vital role in the manufacturing industry. So we have an adamant presence in the automotive, transportation and general engineering sectors. Now, we want to make our presence felt in the aerospace, defence, railways, energy and other sectors as well. These industries are now opening up. Working in aerospace sector is different from automotive as the machining requires more precision because we have to work on titanium, alloys and other composite materials. We have an entire range of product showcase at IMTEX to work in the above industries. If we talk about railways, they are the first time in this country to get privatized otherwise always the government has owned it. There are private industries that are investing a lot and they need a specific solution. We are here to serve them with the best we have. If we talk about our brand, WIDIA machining is moving away from OEMs to the tier-1 and tier-II vendors besides small scale industries. Not only we provide a solution to the customers, but we also train them and across the industry every year more than 1,000 knowledge centres teach cutting tool professionals.

How is Indian market at present?

Since last two months, we have seen some softness particularly in the two-wheeler industry. I think this is because of the demonetisation and I believe that it is temporary and people are finding the solutions.  Nobody wants to shut their business and go. We have quick solutions for all the customers’ need in the West and we have to just bring them here and implement it.

How is Indian market different from global one?

If we compare the both, in the Indian market today there is a transition happening. Customers are no longer looking at sourcing or the supply of the component based on the cost of the cheap labour, they fight on productivity and technology. Indian customers are acutely aware of what is best in the situation. But having said that there is one unique differentiation. At the end of the day, Indian customer looks value for money. Automation and digitization will drive the future of the manufacturing industry in this country.

Do you think Indian market is price sensitive?

Indian market is a segmented market. When it comes to critical applications customers go for nothing but the best solutions and they don’t compromise on that. If somebody is doing only rough turning, then we see the price sensitivity because finishing is done later. It’s a mixed scenario depending upon the case.

What are your strategies for the branding of the company?

Our marketing strategy is to focus on the core business and grow it. We are investing heavily in our manufacturing competencies and core competencies. We want to contentiously gauge the market development and proactively prepare ourselves as regards requirements of the Indian market by fine tuning it. Today, we are slowly focusing on investing in the localizing of what we have.

What is the primary purpose of participating at IMTEX 2017?

It is one of the largest premier shows of the machine tool, cutting tool, accessories, etc. with a live demonstration in international level. We want to present ourselves in the best possible way. We want to connect with our customers, and this is one forum where direct decision makers visit. Seeing is believing, so they want to look at the product as well as meet the team. Customers are used to seeing our front line distributor and front line sales team, but when they come here they get an opportunity our product specialist, our application, our manufacturing, our senior management etc. So they gain more confidence, and we get leads.

What is the vision of the company?

First and the foremost, we are excited about the Make in India concept initiated by our Prime Minister. I say that the manufacturing GDP rate which is around 16% currently, will move up to 25% in future.  We will have an opportunity to play in all end market areas. We want to be a leading proactive player in all end-customer market. We want to invest in our manufacturing facility and present the solution to each and every customer of ours.

 

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