Akar Tools global presence
Mr. Sunil Todi, Managing Director, Akar Tools Ltd.
Hand tools are normally construed as mundane products. But not when they come from Akar Tools who is striving day and night to give a competitive (plus of course technological) edge to its products, package them attractively and offer them to newer segments of the market for mass off-take.
Why too much, the youngsters in the US celebrate the father’s day offering packaged tool kits to their fathers! These tool kits are invariably from Akar Tools. The retail giants like Walmart, Home Depo, Rural King, Menarts, Auto Zone and others buy these tool kits from Akar and stock in abundance. Walwarts’ annual buying of tool kits is worth US $20 million. At the same time, Home Depo’s off-take is worth US $ 120 million,” reveals Mr. R. Sairam, General Manager, Akar Tools Ltd.
High Quality Tools
Technology & Innovation
Akar’s combination spanners are a sell-out in the US market. Out of Akar’s four plants in Aurangabad, one is dedicated to the manufacture of export-oriented products. The company envisages a big demand for its tools in the US and Canada.
Yet another innovative concept implemented by Akar in retail is the so called ‘Planogram’. This is a cased display of all hand tools of Akar from which the customer can pick any product. Akar will replenish the missing tools periodically through its dealer network. “We are trying to introduce the same concept in India also,” remarks Mr. Sairam.
Spreading the Wings
Another breakthrough product launched by Akar is its hand truck. It is a strong product sold in the US and Europe, followed by Vietnam, Philippines, China and India. Lemken from Germany, the world’s largest manufacturer of plough products for the agricultural sector also patronizes Akar.
At home, the automobile sector is a major customer for Akar whose tool kits, auto components, hand tools and leaf springs are procured in large quantities by the auto majors like Tata Motors, Ashok Leyland, Bajaj Auto, Force Motors, Mahindra & Mahindra, Eicher and Escorts just to mention a few. Besides all road transport corporations also buy Akar products in bulk. In fact, one plant of Akar is dedicated to the manufacture of products for these auto segments and RTC’s.
Machined Auto Components & Tool Kits
Strengths Galore
Akar Tools has four plants all in Aurangabad. While plant I is an EOU, plant II makes tools exclusively for auto components for OEM’s. Plant III & IV make parabolic leaf springs. All put together, they contribute Rs.200 crores to constitute the company’s annual turnover.
Hand tool manufacture is a highly labor oriented business. Hence Akar is going in for more and more automation in production. It is progressively installing sophisticated production equipment from Taiwan and other countries to automate production and enhance productivity.
All the same, Akar has a good population of CNC machines, polishing machines, vibrators and other equipment to craft the most perfect tools. Its products are going to globally competitive markets where they meet stringent ANSI and DIN quality standards. This is because of the total commitment to continuous quality improvements at every stage of the production process. At the root of this on-going improvement and innovation is its relentless R&D. Akar has an eminent R&D team attached to each plant.
The company has a dedicated workforce of over 650 trained personnel engaged in chiseling out quality hand tools for the world market. Akar’s commitment to quality is manifested in the certification from TUV Germany for its range of products, besides many other citations, awards and certificates it has received for its excellence in manufacturing world-class products.
The company, steered by managing director, Mr. Sunil Todi, is fully geared for high growth rate and further adding brand value to its products for the benefit of its customers. Akar is the forward integrated enterprise of the R.L Group of Industries.
The Rs.800 crore R.L. Steel Ltd is the flagship company owned by the Group Chairman, Mr. N.K. Gupta. R.L. Steel is a mini steel plant. Having own steel mill has been a boon to Akar which has been able to leverage on this and price its products economically.
Akar situated in the historic city of Aurangabad, also has a locational advantage. It is the only manufacturer of hand tools in the region which is closer to all significant industrial hubs. It also has an airport.
Leaf Spring & Parabolic Spring
Staying Ahead
Akar is today the leader in hand tools in India, with a global presence. It is a one-stop shop for OEM’s who can buy everything in hand tools from one composite source. The company is aiming to be a Rs.500 crore entity by 2020. Towards this end, it is progressively modernizing its production lines and constantly innovating to give value additions to the customer.
“Ours is a highly manpower intensive organization. Absorbing the increasing costs is not always feasible. This is a major challenge for us,” declares Mr. Sairam. “Engineering industry is a wealth creator. It needs hand-holding support and encouragement from the Govt. With the new Govt. in place at the Centre, let us hope that we shall have a conducive climate to gain momentum and regain our past glory,” adds Mr. Sairam on a positive note.
– P.K. Balasubbramaniian
