Machine Tools Milieu
Mr. A.P.Jàyanthram- Managing Dirtector, Heidenhain Optics & Electronics India Pvt.Ltd
Q. We are boasting of our achievements in the machine tool industry. How come 70% of the country’s machine tool requirements are still being met by imports?
Yes. Over 70% by value gets imported ,though our Machine Tool Industry is over 6 decades old. Majority of Indian Machine Tool makers belong to the small and unorganised sector and the big players are busy meeting the comparatively low technology low accuracy needs. The business driver is mainly the automotive industry, which has comparatively lower class demands and when it comes to high end needs like for example, skin panel dies, they are predominantly being imported .
Equipment for high speed machining, Die and Mould , 5 axes and aerospace jobs, come to India from reputed global players. In the segments that Indian Machine Builders operate, there is too much focus on low priced offerings, that originates from demands on ‘just enough’ technology. With this defensive reaction of price sensitiveness, we have unknowingly compromised on quality and yielded ground to imports from leading countries like Germany, Japan Italy and Switzerland and also from those like Taiwan, South Korea & Czech Republic. Thankfully, this situation is changing due to the lead taken by a handful of top Indian Machine Tool companies who are making significant steps to enhance technology by R & D,global acquisitions and joint ventures .
Q. What should we do to reverse the situation or at least reduce the imports substantially?
Imports will continue to be there, as long as there is technological leadership with global companies who put their heart & soul in producing the best for a world market. India can certainly increase the share of the global pie by multiple strategies of Import substitution, local sales maximisation and exports. It is quite clear that “producing cheap” is not the solution, especially in the background of the quality perception that pulls us down in the global market place. We must do everything possible to enhance the quality of our manufacturing education, upgrade our attitudes towards avoidable Jugaad to be replaced by an uncompromising high quality orientation in manufacturing. We must produce machines using the best high end components that the world leaders use.
Q. How will the PM’s ‘Make in India’ campaign help in realizing the above goal?
It is a welcome initiative. But, to persuade technology leaders to come to India and produce, the first thing we need to do is to restore the confidence of the global manufacturing fraternity that we can provide a healthy infrastructure to produce with simpler regulations, better quality of infrastructure, with good roads, high quality power and a corruption free business environment.
