AIA : An apodictic voice of automation industry
Mr. Anup Wadhwa – Director
Automation Industry Association
Q.Automation Industry Association (AIA) being the leading association in India for automation industry, please, brief us about recent initiatives undertaken by AIA in automation space?
AIA’s mandate is to impact the thinking about automation and its relevance to India’s aspirations of being a strong manufacturing nation.
We are therefore focusing on a 2-pronged initiative:
a) Creating a contemporary technology curriculum for engineering and manufacturing graduates. In 2012, we laid the foundation with 2 automation centres of excellence – one in Chennai (with IIT Madras) and another in Vadodara (with Apollo Knowledge Institute). This year we would expand the geographical coverage and support a few colleges to launch an open elective at the UG level.
b) Building an effective interface with user industries. While each automation company attempts to build its own strategic partnership with key clients, we find that the focus on SMEs or middle level engagement isn’t so intense. Developing vendor-neutral platforms of engagement is a unique focus that AIA brings, with technology seminars, awareness about standards, innovation awards, etc.
Q. Please brief more about overall structure of AIA?
We have 2 categories of members Primary Members and Associate Members. Primary membership is open to companies that pursue automation business as their primary objective. Associate membership is open to companies that have at least 1 dedicated division for automation. AIA is managed by a distinguished set of CEOs who are elected to the AIA executive council. The council elects AIA President and Vice President. Currently, Mr. K. Nandakumar, CMD, Chemtrols Engineering is the AIA President and Mr. Dilip Sawhney, Country Head, Rockwell Automation is the Vice President.
Q. As a Director for AIA, please comment on current scenario of the industry?
The industry employs very competent personnel who understand not only the technology nuance but also the application aspect. Solutions capability is the key driver. Companies established in India are doing a lot of value-additions in terms of Application Engineering and Application Software, including embedded software, other automation support services like Consulting, Project Engineering, Simulation, Commissioning, AMC, Education and Training. This has created comfort and confidence in the eco-system about sustaining the drive for modernization and adapting to latest technologies.
As such automation products and solutions are oriented along 3 categories – Continuous Process Control Applications (as in Chemical, Food & Beverage, Oil & Gas, LifeSciences, Traditional Power Generation, Pulp & Paper, Waste-water, etc) Job work and batch production applications (as in Automotive, Fabricated Metals, Plastics, Packaging, etc) and Electrical Energy Management Application (Transmission. Distribution, etc).
Mr. Nandakumar – President
Q. What are the growth opportunities for automation industry in India?
The automation industry growth entirely depends upon the growth and competitiveness of user industry. If core manufacturing and infrastructure sectors are stagnant or decelerating, automation sector will tend to follow the curve. In the last couple of years, the automation industry in India grew at an average of 12 per cent per annum. Today the automation industry in India is approximately Rs. 12,000 crore. While we have a potential to grow by 15-20 per cent given the announced capacity addition in manufacturing, infrastructure and energy sector, the pace of execution has slowed. So we are worried about the volumes remaining stagnant. When the commissioning of new projects in oil & gas, fertiliser, petrochemical and cement sectors picks up, we would celebrate with gusto.
Q. Please elucidate the export performance of Indian automation products?
On the product or hardware side, we seem to be emulating the IT industry by way of being import led. There are some players who export products. But they are an exception. Our export activity is largely by way of project engineering services.
Q. What are the key technological trends that are driving automation industry?
The clear signal is that investing in intelligent automation and control systems to optimize manufacturing, plant optimization, and control and process monitoring systems, is the way forward for the Indian manufacturing industry.
Following this goal, the product technologies that are in demand are:
Sensors and Transmitters:
Trend towards digital technologies with smart diagnostics, wireless connectivity
Control Valves and Actuators:
Trend towards higher precision electro-pneumatics and electrohydraulics
AC / DC Drive :
Trend towards digital architecture
Motion Control Systems:
Trend towards compactness, open standards, multiple axis capability
Recorders:
Trend towards software based with real-time analytics
PLCs:
Trend towards smaller form factor, open connectivity and in-built safety
DCS /SCADA:
Trend towards KPI dashboards, web reporting features
MMI / HMI :
Moving towards color touch screens
Mr. Dilp Sawhney – Vice President
Q. According to you what are the measures to be taken by Indian manufacturers in order to compete with global players?
One of the critical aspects that finds resonance in global manufacturing is the focus on automation as a change enabler. Developed economies and certain developing economies have adopted automation to improve process efficiency and quality parameters. For example, in India, certain industries such as oil and gas and automotive are at par with global automation trends. However, adoption has not been uniform across sectors – such as in food and beverages, consumer packaged goods, mining, water and waste-water, among others, where the investment in automation is not at par with global norms. These sectors offer immense potential for future implementation of limited to full-scale automation solutions.
Q. How do you compare the Indian automation industry against the global industry?
The global market for industrial automation is $ 90 billion, whereas we are around $ 2 billion. The real benchmark is to compare the investment ratios. In India, levels of automation in most industries are far from their respective global norms. Even in Automotive industry ( which is a healthy adopter of automation) the investment ratios are approx. half of what it is in the developed economies.
Q. How do your foresee the future of the Indian automation industry?
Major challenges that we face are related to :
Cost of automation:
The SME segment is price sensitive and often view automation as an expense, rather than an investment for business performance enhancement. Availability of low cost labor further restrains investment of SME market in automation solutions. Machinery manufacturers will be able to stimulate usage through greater automation in their products. Ensuring minimum automation levels in machinery will go a long way in providing a desirable ‘price to value’ perspective to users.
Linkage with return on investment (ROI):
Increasing numbers of end-users are planning a clear return on investment road map for the implemented solution. Due to significant competition and uncertain economic conditions, end-users are fast realizing the importance of sketching a concrete ROI plan. However, with respect to automation solutions, end-users still do not have clarity on the ROI plan. This lack of clarity is acting as a deterrent in the adoption of these solutions.
Regulatory Requirement:
Regulatory regime, which acts as a key driver for the adoption of automation in sectors like food and beverage and pharmaceuticals in India, is still far below global standards. The evolution of the automation industry will have significant contribution from statutory led usage while competitive pressures will drive the other half.
