Connectwell : Colligating the right business values
Mr.Vijay Saheta, Managing Director,
Connectwell Industries Pvt. Ltd.
& Director – Controlwell India Pvt. Ltd.
Q. Please brief us about recent initiatives undertaken by Connectwell in electrical and the electronics space? Which are your focus areas?
The electrical generation and distribution sectors in India have a long way to go as compared with other countries globally. The availability of reliable and clean electricity will drastically improve the overall growth and development of the country and also improve the standard of living of individuals in the country. Despite the current economic crisis in Europe and USA, the electrical market in India will still witness a healthy growth in the near future thanks to the local demand.
This clearly shows that there is a growth potential in the domestic market for component manufacturers like us and we plan to capitalize on this by providing our customers with innovative and reliable products which offer value for money. Electrical connection products like Terminal Blocks are one of our key focus areas. However, our long term strategy is to diversify horizontally into various other electrical products which will enhance our standing in the electrical component market across India and the globe.
Q. Being the key player how do you plan to position your company in electrical and the electronics sector?
Being a key player in the electrical sector, we have always been a customer focused company and offered a mix of standard and tailor made solutions to suit the needs of our diversified clients. From a broader perspective, we have been focusing on low tension power connection products and simultaneously been expanding into products used in the automation segments like interface modules and power supplies. In addition to this, our associate company, Controlwell India Pvt. Ltd has also been providing solutions for cable protection from various international manufacturers to Indian consumers.
Q. How do you score R&D in your company against all other functional heads?
Being an engineering company, R&D has been the key parameter of our success today. Since our inception, we have been steadily investing in various R&D projects which have helped us open new markets and attain innovative engineering capabilities. For example, we were one of the first companies in India to own and operate software tools for analysis of plastic moulding also we have been one of the first companies in India to move to, an all-electric platform for injection moulding process.
Our goal has always been to provide highly efficient products which are cent percent reliable, thereby providing our customers with the best value for money. This has always driven us to take our products through rigorous R&D and QAQC cycles. In the last one year we have invested substantially in improving and standardizing our product development platform right from incorporating specialized software needed for mechanical and electronic design, to systems needed for a robust product life cycle management. Our HR initiatives have been directed towards expanding our Research and Development team with the objective to enhance the size of our R&D team four fold in the next two years.
Q. Indian market is price sensitive, what is your marketing strategy for India to counter this situation?
Traditionally India has always been a price sensitive market which makes it challenging for us to market our products in India, especially because of increased availability of highly competitive products from other Asian countries. As price has been a basic factor governing sales and cannot be ignored, our marketing strategy has been to highlight the fact that when a price comparison is made, one should not miss out on the hidden parameters of the product and carry out a rigorous cost – benefit analysis.
We have always urged our customers to identify their specific requirements before finalizing the sales. That is we try to suit our offering to the specific needs of the customer delivering better value for money. On the operations side, we have taken numerous steps to control overhead costs. Few such initiatives include, automating all critical and high volume manufacturing processes, following value engineering principles on some of our extremely price sensitive products and constantly evaluating and reducing our organizational waste levels through better standards and systems.
Q.What is your quality policy for the business?
Given today’s highly competitive market, quality is an important differentiating factor and it plays an imperative role in building a company’s reputation and global brand image. When it comes to quality assurance and control we take it very seriously and it is our top priority to provide our customers with products of the highest quality.
We do not differentiate on product quality on the basis of the target market and hence all the products leaving our company premises are export oriented. Which means that products supplied to a local customer is of the same standard as the one supplied overseas to developed regions like Americas or Europe. Our company is ISO certified and also all our products carry international approvals like UL, CSA, VDE etc. which requires us to conduct rigorous audits to maintain these high quality standards.
The routine customer feedback on products supplied to them also plays a critical role in our internal quality policy as a whole. The quality of the product is monitored by statistical tools and also by frequent audits on all systems be it design, manufacturing or delivery. We set internal targets for improvement and strive to reach these goals every year, hence challenging ourselves on a regular basis.
Product quality assesment –
Connectwell quality control department
Connectwell Quality Motto
Connectwell Products are CSA, UL, VDE, Atex and CE approved. In addition our products adhere to environmental directives defined by RoHS and REACH directives. Our UL accredited laboratory is fully equipped with all the required lab equipment for testing our products and ensures our adherence to quality standards. In addition to the above our use of fully automated machinery ensures minimum wastage and also repetitive high quality levels.
Q.Please elucidate the export performance of Indian electrical and the electronics products? What is the demand scenario of Indian products in global market?
According to a report by IEEMA, India’s export contribution in the electrical component sector is less than one percent of the global trade. This means that Indian companies virtually do not exist on the international platform. One of the few reasons for this is lack of innovation and quality aspects of the ‘made in India’ product label which needs a lot of improvement. However over the last few years, this trend has changed and many Indian companies are emerging as leaders in their respective product segment, but there is a lot more to be done.
Automation process department at Connectwell
Competitive pricing is one element where Indian companies have scored overseas and there has been a gradual increase in the demand for Indian products. We as a company have strived very hard to maintain international standards for all our products and have been awarded as a star export performer in the electrical segment last year. We were also recognized and awarded by the Government of Maharashtra, Ministry of Industries, Ports, Employment and Self Employment for Export Achievement in our Product Group for the year 2009 – 10. Having participated in many global trade fairs and exhibitions, we have noticed a change in customer perception for Indian products and many international buyers are accepting India as a favorable source to import electrical equipment from. So the market remains as open as ever and it is only a matter of reaching the right quality levels and the right exposure.
Q.According to you what are the factors affecting to electrical and the electronics business?
There are several factors affecting the electrical sector. Over the last two years we have seen unprecedented rise in the cost of raw materials, adding to it is the fact that inflation needs to be combated with appropriate adjustments in wages and salaries. These factors have led us to increase our prices in a market which is already highly price sensitive and competitive. As far as the market’s condition is concerned, the inordinate delays in government led projects on electrification are leading to slower off-take from primary suppliers of electrical products. The economic crisis in the US and Europe have led to fears of a global recession becoming a major concern and may affect demands from these nations.
Employee training centre at Connectwell
Q.What are the key technological trends that are driving electrical and the electronics industry?
As we reach an era where crude oil prices have already crossed the US$ 100 per barrel mark many countries are looking at alternatives to fossil fuels which are not only renewable but also cheaper to extract. Sources of power such as solar, wind and bio-gas is one of the fastest growing segment the world over. Brazil for example meets almost 40 percent of its energy requirement through bio gas derived from sugarcane. Many European countries have invested in wind and solar technology. As these technologies make their way into India, our endeavor is to provide solutions which match up to these new technologies.
Q.According to you what are the measures taken by Indian manufacturers in order to compete with global players?
It’s been two decades since Dr. Manmohan Singh opened up the Indian economy to the world which made Indian companies rethink their manufacturing and marketing strategies in order to compete with global multinationals. Since then we have witnessed a complete change in the manner in which Indian companies have perceived the term “business”. Today Indian companies are investing heavily in R&D initiatives to develop innovative and efficient products to meet global standards. India is no longer being seen as a heaven for cheap labor, on the contrary many international companies are outsourcing the development of highly technical products and solutions to India. Delivering quality products at reasonable prices, meeting international environmental standards and investing in R&D initiatives are some of the initiatives taken by domestic players to compete with global multinationals.
Production facility at Connectwell
Q.How do you compare the Indian electrical and the electronics industry against the global industry?
With India’s export contribution in the electrical component sector less than one percent of the global trade, Indian companies have a lot of work to catch up with the global industry. Traditionally India has never been an export oriented hub and hence most technology developed was made to suit the local needs. Lack of R&D initiatives and dependence on foreign technology set us back many years. This scenario is gradually changing, thanks to the initiatives taken by the Government of India and strong endeavors shown by domestic players particularly those in the SME segment.
Q.How do your foresee the future of the Indian electrical and the electronics industry?
The recent civil uprisings in the Middle East followed by the economic crisis in Europe and the United States have threatened to slow down the immediate growth. Having said this I am confident that the long term outlook still looks bright given the local demand from India’s energy sector and it should be our endeavor to remain on path of growth and investment.
Q.Please elucidate the product portfolio of your company & do have any plans to launch new products in the market in near future?
Built over the years on the premise of strong engineering and technology Connectwell offers a wide range of products. Each of our products represents the precision, safety and reliability that customers have come to expect of Connectwell.
Few of our leading product lines are
(i) We offer hundreds of variants of Din Terminal Blocks with complex functionalities and also a host of PCB Terminal Blocks.
(ii) Interface Modules which act as Input and Output Interfaces / Adaptors for Control Systems which involve PLCs, SCADAs etc.
(iii) Industrial Plugs and Sockets which enable a quick connection system for powering any industrial appliance / Machine.
(iv) Din Rail mounting Switching Power Supplies which comply to European guidelines.
(v) Din Rail Mountable Switch & Sockets offering easy connections in Electrical Panel Boards.
(vi) Professional Tools offering with wide range of Screw and Nut Drivers with Highly Ergonomic design which are best in Industry.
(vii) Customized Products & solutions like Din Rail Assemblies, Combination Boxes and Customized Junction Boxes adding a value to standard Product offering and saving considerable amount of installation time and costs for our customers.
Q.What is your vision for your company?
Connectwell is committed to provide safe, reliable and efficient control & connection solutions in line with ever changing technology requirements. We shall empower domestic and global customers with the products of the highest quality standards, with a competitive edge and at superior service levels. Create a work culture that encourages individual growth, team spirit and creativity, helping us over come challenges and attain goals. Deploy fair & ethical business practices for the growth of our vendors and maximize returns to our share holders. Contribute towards the welfare of our community and follow environment friendly practices.
