Since the preparation for Hannover Messe 2022 is in full swing, can you please share something with our readers?
Hannover Messe 2022 will use 17 halls at the exhibition center – roughly 130,000 square meters of floor space. We expect a strong on-site exhibitor presence from Germany and Europe. We are also seeing positive signals from the USA. As far as Asia, we expect less on-site participation due to pandemic-related travel restrictions.

The exhibition caters to one of the industries that were highly affected by the pandemic. What changes are you expecting going forward?
Hannover Messe will be a hybrid event in 2022, but the focus remains on the face-to-face aspect. Our experiences during the pandemic have shown that nothing can replace personal contact at trade shows – all of our exhibitors, visitors, and partners agree on this. So moving forward, we will continue to offer virtual features that complement the on-site event by offering new ways for participants to connect, network, and do business – especially at the international level.

What are the new technologies and trends that the visitors/exhibitors will witness during this edition of Hannover Messe?
Our lead theme is Industrial Transformation. In 2022, we are focusing on two areas where industry plays a crucial role in achieving climate targets: digitalisation and sustainability. So expect to see products and services that accelerate the shift to a resource-sparing, climate-neutral and sustainable industry. Some of the hot topics for 2022 are Industrie 4.0, climate-neutral production, IT security, artificial intelligence, and green hydrogen.

How many countries are participating in the upcoming event and what would be the number of country pavilions in the show?
So far, exhibitors from 35 countries have signed up but it is too early to make a reliable projection. Due to the pandemic, however, we expect a more compact event with less international participation than usual.

How many participants are there from India and what’s the plan to attract more Indian visitors?
At this point, we cannot make an accurate forecast. The pandemic remains dynamic. Travel restrictions make it impossible to predict what will happen in the coming months. We will continue to remain in close contact with our subsidiary in India to monitor the situation.

How can this event help Indian companies enhance their business in the European market and vice versa?
Hannover Messe is the world’s leading trade show for industrial technology – it is where industrial pioneers from all over the world present their innovations and solutions for the factories, energy systems, and supply chains of the future. In Hannover, exhibitors and visitors from India experience the latest trends and technologies from Europe and meet with potential partners from Europe. At the same time, European participants see first-hand what business and investment opportunities India offers.

What’s the role of Hannover Messe in the German Manufacturing industry? How has it helped the German companies in business over the years?
Hannover Messe is the most important annual trade event for the German industry. No other event covers manufacturing, energy systems, and logistics on such a comprehensive scale or brings together so many participants from all over the world.

Our partners include Germany’s leading industrial trade associations, such as the German Mechanical Engineering Association (VDMA) and the German Electrical Engineering Association (ZVEI). Quite a few of our German customers have been exhibiting at Hannover Messe since the beginning – the late 1940s and early 1950s – and have grown with us to be world leaders in their fields.

Talking about the German manufacturing industry. What are the current trends in the German manufacturing industry?
Our exhibitor advisory board consists of leading German industrial companies, so the trends you see at Hannover Messe represent the current trends in German industry, for example, digitalisation, decarbonisation, net-zero production, sustainability, IT security, and Logistics 4.0.

How do you see the Indian market? How can we improve trade relations between India and Germany?
India is one of the world’s biggest markets and remains a desirable economic partner. Let us not forget: India was partner country at Hannover Messe 2015 with 367 exhibiting companies and about 5,500 visitors – one of the biggest partner country turnouts ever. However, the pandemic has severely restricted the personal contact that is necessary to start and build business relationships. We hope that the situation continues to improve so that we can soon welcome more guests from India again. That would be a great way to improve trade between the two countries.

Interview by Nishant Kashyap

Q. India and Germany share a strategic partnership that has its basis in strong business and economic links. With a trade history of over 500 years, India and Germany are linked by a common past of economic cooperation. In the 19th century, it was German company, Siemens, which built the first telegraph connection between Kolkata and London, via Berlin. How have the economic and trade relations matured between the two countries over the years? 
A you rightly mentioned, the Indo-German relationship dates back to more than 500 years. And yes, the trade relations between India and Germany have also been developing very well over the years. In fact, presently, the bilateral trade between these two countries is almost approximately worth 20 billion euros and it’s been growing at the rate of 4% to 5% year-on-year. The last two years, however, have been an exception; we witnessed a slight dip during this time because of the economic slowdown caused by the pandemic.

Germany is India’s largest trading partner in Europe. Did you know that there are around 1,700 well-established German companies in India? These companies collectively employ almost
4 lakh people directly or indirectly. I believe this shows the commitment of the German industry to the Indian market. Indian companies, too, are doing good business in Germany. So, you see, it’s not just one way! I think, as we go ahead, this bilateral trade relationship will only get stronger.

Q. That’s very insightful! The growth of the Indo-German trade relations is clearly evident considering the number of German products — consumer and B2B — which we see around us. What is the role of VDMA India in facilitating Indo-German business activities?
VDMA is the German Machinery and Plant Manufacturers’ Association. We are the largest industrial association, not only in Germany, but in the whole of Europe. We have at least 3,320 companies as members of our association. The combined turnover of our members is to the tune of approximately 205 billion euros. Ours is a 127-year-old association, and so, it is very well established.

In the last 20 years, the commitment of German companies in India has only gotten stronger. Earlier, German companies were mostly present in India for sales and service support. But now, many have established manufacturing facilities here. This is a great sign for India.

An interesting thing to note is that a good chunk of this bilateral trade comes from the machinery industry. When we specifically talk about German machinery exports to India, it is close to 3,000 million euros, while from India to Germany it is about 850 million euros. We have about 600 members in India, and every year, we see more and more German companies establishing their facilities in India.

I am happy to share that VDMA has a played a key role in these bilateral trades between these two countries over the years.

Q Indian businessmen have immense respect for German engineering. What is it that the Germans do differently? What should India learn from Germany?
I would like to highlight a few aspects here.

Firstly, I believe, what distinguishes Germany from other countries is the dual system of education or training it offers. I think this plays an important role in the development of the German engineering industry. Allow me to elaborate. When students graduate, they have the option to avail of practical training. The curriculum is framed in such a way that a significant amount of time is spent on practical training in a real work environment with companies. So, when they graduate, they are ready for the job and don’t have to undergo much training. In India, the education system is more theory based. Not much emphasis is put on the practical training aspect. I think this should be made a part of our education system.

Secondly, I’d like to discuss the importance Germany gives to research and development (R&D) activities. This is a critical distinguishing factor. Germany spends roughly around 3.5% Thirdly, a stronger industry-academia interaction needs to be facilitated. I think this is very strong in Germany. In fact, many projects that are done in Germany are conducted jointly by the industry and the academic institutions. This not only boosts the R&D activities but also furthers the cause of skill development.

So largely, I think these three factors are what, perhaps, we can also try to inculcate in India or, at least, try to start this practice in our country.

Q. According to the VDMA, its member companies in China, Russia, Brazil, and India, expect a double-digit increase in sales in 2021. What factors will particularly drive the sales in India?
We are all in the midst of a very strong second wave. The pandemic has significantly impacted the industry. Last year, our GDP contracted by about 7% to 8% largely because of the pandemic. This year, different rating agencies have projected an approximate 12.5% growth. The year 2021 started on a good note. Things were going well until we got hit by the second wave. The GDP growth has now been pegged down to 8.5% to 9%.

Now, everything depends on how soon we are able to recover from this lockdown. Most states are currently under lockdown and their ability to bounce back will define the growth in the coming months. Of course, there will be a lot of pent-up demands to meet. We have seen this before. The largest customers of tooling, and automotive industries bounced back once the market opened after the first wave of the pandemic.

Government initiatives are also likely to offer a fillip. For instance, the PLI scheme will help various Indian industries in the long run. In the last budget, the government increased its allocation to infrastructure projects by 10%. When we talk about infrastructure and the automotive industry, it will help the growth of sectors such as the cement industry, steel industry, capital goods industry, and power sector, among others. Industries such as medical, agricultural equipment, construction equipment, white goods, and electrical & electronics industries are also poised for growth in the coming days. Keeping all these factors in mind, I believe the Indian manufacturing industry is ready for significant growth in coming years.

Q. Germany is a frontrunner in the adoption and promotion of smart manufacturing. In fact, Industry 4.0, which is the current buzzword in the global manufacturing industry, was coined by Germany. How can the Industry 4.0 concept help Indian MSMEs, especially the tool and die makers?
When it comes to Industry 4.0, there are many myths surrounding it, especially among MSMEs. Many think that adopting Industry 4.0 may not be financially feasible, while others feel it is very complex and they may not be able to deal with it. However, to put it simply, Industry 4.0 is nothing but connecting machines, gathering data from the machines, and using this data for analytical purposes. So, one does not need to have an Industry 4.0 setup in one go. It’s a journey; one can adopt it step-by-step, as per their requirements and understanding.

Industry 4.0 is very much relevant and needed in MSMEs. Let’s compare the scenario of a one-day breakdown in a small enterprise and a large enterprise. Considering the finances, infrastructure and resources, among other factors, of these two enterprises, the impact on the small enterprise is most likely to be greater as compared to what a large enterprise will have to deal with. However, with Industry 4.0 in place, MSMEs can avoid breakdowns and enhance their efficiency. I am sure that tool and die makers will immensely benefit if they adopt Industry 4.0.

Q)  What are the major manufacturing trends shaping the manufacturing industry? How will they impact the tool and die makers?
There are a few noteworthy trends that are shaping the manufacturing industry and are having a significant impact. The trends include:

• Industry 4.0: As mentioned earlier, Industry 4.0 is going to significantly change the way we manufacture and source parts. All the trends will definitely revolve around Industry 4.0 and smart manufacturing.
• Automation will be key: The pandemic has taught industries an important lesson — automation is key to sustain in this uncertain economy. I feel the usage of robotics will increase in the future. Collaborative robots are going to play a vital role, as they can work collaboratively with humans and could be a great addition for applications that are dangerous or unhygienic.
• Additive Manufacturing (AM): AM is gradually becoming a mainstream manufacturing technology. With the level of innovations happening in the 3D-printing space, I am sure that the adoption of AM will increase in all the industries.
• Virtual Reality (VR) and Augmented Reality (AR): VR and AR are already impacting the consumer industry in a big way. They are gradually stepping up in manufacturing as well.

Q. Any words of advice for Indian toolmakers? Is there something they should learn from their German counterparts?
Germany is the leader in manufacturing technologies because they absolutely refuse to compromise on quality. This is something that stands out when we talk about German technologies and processes. German companies, whether they are small job shops or large OEMs, always stress upon quality and consistency. However, in India, we go a little flexible on quality. We must learn to maintain the quality with consistency. Having said that there has been considerable progress in the Indian industry as well. And now, Indian companies are servicing global giants, which is only possible if we maintain quality. I am sure things will improve in the coming days.

Q. How can toolmakers from these two countries collaborate to leverage on each other’s strength?
India holds huge business opportunities, as we are one of the fastest-growing economies, we have the largest population of youth, and our consumer purchasing power is increasing at a fast pace. Germany is an engineering powerhouse that exports technologies to the world.

This is like the perfect match. Germans need markets and Indians need access to technologies. Indian tooling companies should explore partnership opportunities with German companies. Germans have the technological
know-how, while Indians have a good understanding of the market. The two need to leverage on each other’s strengths.

All in all, I am highly optimistic about the India growth story. We are going to witness a GDP growth of 11% to 12% in the years to come.

Courtesy: TAGMA Times

‘I’m quite optimistic about the coming years’

“I see many new developments happening in India. But, at the same time, on a broader base, a lot of groundwork needs to be done. For instance, there’s a need for improvement in a lot of areas such as trust among customers and suppliers, and financial planning, which is a major pain area for all toolmakers, among others,” says Marc Weinmann, Chairman, VEM Tooling.

Q. Please give us an overview of the challenges currently faced by toolmakers during the COVID-19 pandemic. Also, could you please explain their significance in hampering growth and business prospects?
The COVID-19 pandemic has adversely impacted the global supply chain and affected the functioning of businesses across various sectors. Toolmakers are finding it challenging to deal with this crisis. For instance, owing to low order volumes and holding off on new development projects from OEMs and Tier-1 companies, toolmakers are currently grappling with excess capacity and financial management.
Undoubtedly, customers are willing to develop tools in India instead of approaching overseas suppliers that are offering better pricing. However, the local buyers are quoting irrational prices and payment terms, which does not bode well for Indian toolmakers.
In simpler words, everyone in India is talking of developing the local mould making market, but no one seems to be willing to really support this cause. The Indian buyers’ approach seems short-sighted and disinterested in forging long-term partnerships.

Q. As per estimates, ~70% of Indian tooling demand is being met domestically and ~30% via imports. What could Indian toolmakers do to reduce imports?
Indian toolmakers lose out to their global competitors because, in most cases, they are not equipped to meet the tooling demands. They need to join hands and focus on improving their processes to match the standards of other dominating tooling industries across the world. The industry also needs to explore alternative ways to enhance their productivity. For instance, they should consider investing in design automation, high-end machining processes, better manufacturing process and measurement capabilities.

Q. With the automotive industry going through an uncertain time, what other emerging sectors could toolmakers explore?
Rather than focusing only on automotive, toolmakers need to believe that they have a world of opportunities waiting to be tapped. For instance, when the pandemic struck, some toolmakers decided it was best to diversify. They started with the manufacturing and distribution of disposable face masks, and other healthcare products, to meet the growing demand for these. So, the medical industry is definitely a good option here. Pharma and packing industries could also be explored. The Indian government has been promoting indigenous production and has allocated an impressively high amount for the defence sector. I think toolmakers could consider exploring the defence sector as well. However, TAGMA needs to assist toolmakers here. The association needs to create a forum for toolmakers to help them understand the needs of various industries and access the opportunities that these industries have to offer.

Q. Industry 4.0 and hybrid manufacturing have been around for a long time now. Do you think companies will opt for automation post COVID-19?
The pandemic has made the world realise that if we want to survive, we need to adapt to the changes that come our way. So, if toolmakers are looking to survive and thrive in the long run, they will have to adopt automation. Most tool rooms are sceptical about adopting automation because of the costs involved. However, they need to find ways around that. For instance, smaller tool rooms in India could actually consider merging. They could build on each other’s strengths and become far more competitive.

Q. What short and long-term opportunities do you see amid the COVID-19 crisis for Indian toolmakers?
With global trade being affected, I see local customers exploring local suppliers to get the job done. This could be looked at as a short-term opportunity. In the long-term, I think the disruption in the global supply chain has made industries across the world realise why they need to consider other manufacturing destinations. I think India is emerging as a preferred manufacturing hub. But here, I believe it’s all up to Indian manufacturers and their suppliers. They must find feasible ways to work together and make the best of this opportunity.

Q. After a challenging 2020, what are your expectations of 2021? According to you, how will the industry shape up in the coming days?
I am quite optimistic about the coming year. I see many new developments happening in India. But, at the same time, on a broader base, a lot of groundwork needs to be done. For instance, there’s a need for improvement in a lot of areas such as trust among customers and suppliers, and financial planning, which is a major pain area for all toolmakers, among others.
Besides this, I’m hoping to see a change in the way banks and other financial institutions amend their approach towards the industry. I hope, like their international counterparts, they choose to support the industry instead of only thinking about business risks.

This interview was first published in TAGMA Times newsletter 

‘Indian tool rooms should start looking beyond the automotive sector’
“Sectors like packaging, medical appliances, defence, aerospace, railways, mobile manufacturing and the electronics industry, offer high potential, which is yet to be tapped. It is high time the tooling industry enhances its capacity to meet the growing demand from these sectors,” says Amit Kumar Parashar, Sr Vice President – Operations (Tool Room, Central Quality, Service & QS) Subros Ltd.

Q. Please give us an overview of the challenges currently faced by toolmakers during the COVID-19 pandemic, and their significance in hampering growth and business prospects?
The COVID-19 pandemic has hit the world like a tsunami at a time when it was totally unaware and unprepared. It has jeopardised global growth, including that of developed economies such as the US, the UK, Germany, and India as well. As a result of the lockdown in varying degrees, the entire world has enforced a travel ban and made social distancing a norm. This has brought the wheels of the global economy to a grinding halt. Saving lives has now become paramount while saving the economy has become a secondary consideration.
Owing to the pandemic, globally, the GDP projected a minimum 1% dip and there has been a decrease in domestic demands in all segments. As a result, industries are doing everything they can to conserve and protect their liquidity and cash. Project and product launches have been postponed; the ones still in the discussion phase have been put on hold.
These changes have put the tooling industry under stress, as their annual plans, expansion plans, and investment plans have also come to a standstill. The supply chain has also been impacted, as the tooling industry was relying on China to supply std parts, and raw materials when this pandemic began. Finances, too, were affected as the payment cycle was disrupted, which, in turn, impacted the future purchase of std items and raw materials. Besides this, the scarcity of manpower began to affect production in tool rooms.
However, I feel that these exigencies brought in a silver lining. The tooling industry began to think of strategies to implement in order to bring the situation under control. Additionally, the government’s initiatives such as ‘Atmanirbhar Bharat’ and commitment to help the manufacturing industry will help put the tooling industry back on track. It’s all up to us now. I’m sure that if we are able to deliver, the future will belong to the tooling industry.

Q. How will campaigns like ‘Atmanirbhar Bharat’ and Production-Linked Incentive (PLI) Scheme in the electronics sector help domestic toolmakers in the long run?
I think both these campaigns will definitely be beneficial in the long run. The 4-6% incentive provided in the PLI Scheme for the electronics sector will encourage companies to start manufacturing locally and expand their capacities. I’m optimistic that in the coming days, more and more global companies will set up their manufacturing base in India. Localisation of the tooling industry will be the first step to realise the cost benefits. The opportunities are immense.
Major sectors such as automotive, consumer electronics, aerospace, railways, infrastructure development, and mass engineering projects will propel the Indian die and mould industry to substantially grow in years to come. According to a report, the Indian tooling industry is currently valued at INR 18,000 crore and is projected to reach INR 26,000 crore by 2025. I think that the government’s initiatives, risk mitigation measures, and focus on localising manufacturing will help the industry prosper.
The other factors set to make a positive impact are initiatives such as dedicated SEZs for aerospace manufacturing, ease-of-doing business policy reforms, encouraging greater FDIs, overall infrastructure development, promoting and forming dedicated engineering clusters, skill development initiatives that will ensure availability of trained manpower to do the specific jobs, etc. These efforts would enormously provide a greater thrust to this industry, making it one of the key growth contributors to the manufacturing industry GDP in India.

Q. As per estimates, ~70% of Indian tooling demand is being met domestically and ~30% via imports. What can Indian toolmakers do to reduce imports?
Domestic tool rooms are unable to fully meet the tooling demand of the Indian industry. As a result, tools are being imported. If we look at the tooling being imported, they broadly fall into two categories. The first category is critical tooling, which require adherence to stringent quality requirements. For example, like body side panels, fenders, LED lights, back lights. It also includes tooling which requires high dimensional accuracy. For example, aluminium forming and stamping dies for automotive application or electronics. The second category include parts, which require special texturing and smooth finish. Only a small percentage of these belong to the non-critical segment. The reasons why it is preferred to outsource these jobs is because outsourcing them will ensure that they fall within the budget and are available within the set timeline.
No doubt Indian tool rooms have developed the capability to cater to all such tooling needs. However, owing to inadequate infrastructure and capacity, they are unable to deliver within the set timeframe, making overseas tool rooms a preferred choice. Hence, there is a need for tool rooms to be equipped with high-speed machines, die spotting and quality Inspection infrastructure, like CMM, contour checker. They need to invest in CAE tools for designing and must strengthen their project management through tool room specific software readily available for planning and scheduling in order to reduce imports.

Q. The industry faces many challenges pertaining to the availability of adequate finance, availability of skilled manpower, lack of industry-friendly policies and export incentives. Have the government and associations undertaken any initiatives to help the industry?
Yes, definitely! The government is undertaking initiatives through platforms such as NSIC, which offers MSMEs a single window to register, obtain easy financing, assistance to procure raw materials and a B2B portal. Such platforms help small and medium tool rooms not only get a foothold in the industry but also access to technical support. Besides this, initiatives such as ‘Atmanirbhar Bharat’ and ‘Make in India’ are helping our manufacturing industry become self-reliant and increase its contribution towards the country’s GDP.
Tooling is a capital-intensive industry. In its endeavour to provide the right growth stimulus to the industry, particularly with the objective of helping SMEs, the Government of India has now set up tool rooms at Aurangabad, Ahmedabad, Bhubaneshwar, Guwahati, Hyderabad, Indore, Jamshedpur, Kolkata, Jalandhar and Ludhiana. These tool rooms are equipped with the best technology and are aware of the latest advancements in the field. They periodically add new technology like CAD/CAM, CNC machining for tooling, vacuum heat treatment, rapid prototyping, etc. These tool rooms also run training programmes for skill upgradation, which staff working in tool rooms and various MSMEs can participate in.

Q. The automotive industry is going through an uncertain time. What other emerging sectors can toolmakers explore apart from automotive?
Indian tool rooms should start looking beyond the automotive sector. Sectors like packaging, medical appliances, defence, aerospace, railways, mobile manufacturing and the electronics industry, offer high potential, which is yet to be tapped. It is high time the tooling industry enhances its capacity to meet the Q. growing demand from these sectors.

Q. Industry 4.0 and hybrid manufacturing have been around for a long time now. Do you think companies will opt for automation post COVID-19?
The design and manufacturing of dies and moulds represent a significant link in the entire production chain because nearly all mass produced discrete parts are formed using production processes that employ dies and moulds. Thus, the quality, cost and lead times of dies and moulds affect the economics of producing a very large number of components, subassemblies and assemblies, especially in the automotive industry. Therefore, die and mould makers are forced to develop and implement the latest technology in part and process design, including process modelling, rapid prototyping, rapid tooling, optimised tool path generation for high-speed cutting and hard machining, machinery and cutting tools, surface coating and repair as well as in EDM and ECM.
But whether it is in bulk or hybrid manufacturing, tool rooms will opt for automation if there is a business proposition at a lower cost. Also, it needs to be seen as to how the government will support Indian tool rooms in adopting these latest technologies.
Q. What short and long-term opportunities do you see amid this COVID-19 crisis and growing geopolitical situation?
The global die and mould market is anticipated to rise at a considerable rate during the forecast period, between 2020 and 2026. In 2020, the market was growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon. The die and mould market is expected to grow at the highest CAGR during the forecast period, 2020-2026.
On a short-term basis, as the tool supply from Asian countries have been delayed or restricted, the industry is looking to make up for the loss through order realisation domestically. The opportunity exists where the gaps can be filled by the Indian tooling industry, which should be ready to take up the challenge and deliver. For the long term, the promising factor is the ‘Atmanirbhar Bharat’ campaign, where localisation of tooling will offer a major thrust to the automotive and non-automotive sectors.
Given that the origin of the crisis was from China, global supply chains are severely disrupted. From a global perspective, China cannot remain a trusted partner anymore. This creates huge opportunities for India on a long-term basis. Major manufacturing nations in the world have given signs that they wish to diversify the sourcing for global value chains. There will be tough competition to attract investors to India, but this will give a golden opportunity to our tooling industry to get a foothold in the global value chains

This interview was first published in TAGMA Times newsletter 

Q. TopSolid SAS has recently announced the opening of a new strategic partnership, TopSolid India, how do you plan to tap the growing Indian market?
Richard Lamure: The trends and strong demands of the Indian industry such as Industry 4.0, automation, data management, and connectivity, not only request a global approach, but also professional and sharp teams to guide customers’ projects. The Indian market is developing rapidly. The country’s economy offers a lot of growth
opportunities, specifically, for precision tooling, defence, electronics (mobile handset market and telecom gear) and railways. These are sectors, which TopSolid has worked very closely with in Europe. But to work closely with highlevel technical support and training localisation  in India, we needed to have an India-specific strategy in place. As a result, TopSolid India was born. We formed TopSolid India with our reliable and trusted partner DCPL. TopSolid India plans to focus on important industrial cities. We will reach out to trade associations such as TAGMA, auto clusters and vocational schools to further the company’s cause.

Q. Tell us more about TopSolid and its products for design, manufacturing, mould making and metal forming industries?
Richard Lamure: TopSolid’s entire suite of products is developed and continually upgraded to support all domains of mechanical engineering industries—right from design to manufacturing. There are around 50,000 licences in use across the globe in sectors such as precision tooling, marine, aerospace, precision medical and automobile
sectors. In fact, TopSolid SAS’ footprint represents more than €100 M with 600 people worldwide daily committed to support customers.

Q. What do you think are the key drivers of the tooling industry? How does your company aim to support the manufacturing industry here?
Arnaud de Boisboissel: The Indian tooling industry is maturing rapidly not only in terms of quality but also scale of operations. The automobile, electrical switchgear, pipe and pipe fittings, FMCG, white goods and household
industries’ demands are increasing by the day. And, the toy sector is bringing up exciting opportunities. We expect to witness growth in the electronics sector, viz., the mobile handset manufacturing segment, and plan on setting up a manufacturing base in India. The growth potential is immense and we are committed to serve this increasing demand.

Q. What do you think are the current technology trends witnessed in the industry? Please take us through them?
Arnaud de Boisboissel: As Mr. Richard Lamure mentioned, Industry 4.0 is the growing trend. In fact, I should say that in India, it’s already a reality. The latest improvements and developments are proof of this. For years, we have been providing integrated solutions, which are data management oriented, in connection with industry standards. I believe that we are well positioned to lead the industry

Q. Could you tell us more about your iconic product, TopSolid’Mold. How can it help mould makers attain high efficiency and accuracy?
Arnaud de Boisboissel: TopSolid’Mold was developed keeping user requirements in mind and considering the valuable feedback from global tool makers in Japan, Europe, and America. Special care has been taken while developing TopSolid and its modules to ensure seamless flow of the entire digital chain—right from mould design to machining, electrode and wire cut. It has numerous user-friendly features to support standard libraries, standardisation, and customisation to match the customers’ demands. We are glad to address the ever-growing needs of advanced tool makers with multinational presence such as PANASONIC from Japan, SOCEM and ARAYMOND from Europe, DBM Reflex and BELGA MATRIZES in North & South America.

Q. What makes TopSolid products unique, given the fact that there are many CAM solution providers across the globe?
Arnaud de Boisboissel: TopSolid’Mold and its related tooling modules aim at offering integrated global solutions on one platform to address the dynamic needs of the tooling industry. CAM is just one part of the digital chain—starting from conceptualisation, designing of moulds to proveouts. TopSolid addresses 2D, 3D, and 5-axis on a single platform with best-in-class simulation (CNC machine, job, tool holders and clamping elements). Besides, it has access to libraries of cutting tool manufacturers.
It is important to note that the TopSolid team works closely with several reputed machine manufacturers to develop certified post processors. Operating-level personnel using TopSolid can work stress-free in tool rooms,
as they do not need to worry about repetitive tasks or machine collision. Instead, they can focus on productivity and efficiency while running operations.

Q. Clearly, going digital is the way forward for all industries. How is TopSolid gearing up to help companies achieve their digital goals?
Arnaud de Boisboissel: This is fully part of TopSolid’s strategy and Industry 4.0’s direction. TopSolid’s philosophy is to help companies work digitally and eliminate the redundant steps in design and manufacturing. The entire process can be made paperless, while minimising the need for human intervention. Its various modules
help in integrating various functions, thereby compressing the total throughput time.

Q. How can manufacturers optimize on technology to carry out operations amid the COVID-19 outbreak?
Arnaud de Boisboissel: Using technology and technology-driven solutions are the only alternatives in the current situation. Owing to the scarcity of skilled manpower to get the jobs done, it is become more important to look at technology to fill in the gaps. To meet customers’ standards, TopSolid has incorporated the best practices of the industry into its highly customizable products. These not only help in minimising repetitive tasks but also in automating the process to a great extent.
However, the transition to automation must be done in phases. Automating the process and minimising human intervention are needed in order to reduce waste and improve productivity. Being a truly integrated platform for design and manufacturing helps in reducing the unnecessary steps of duplication and preventing loss of information when using different software for design and manufacturing. All the relevant information and data can be retrieved and used to monitor quality and traceability.

Q. What are the key growth drivers in India? What are your plans for the Indian market?
Arnaud de Boisboissel: There are several growth drivers in India, but the most important ones are the country’s pro-development government, and availability of skilled and knowledgeable manpower. Currently, many countries have understood the importance of diversifying and they are considering setting up their manufacturing base in India. Some have already done so. I think that the availability of reasonably good infrastructure and quick scalability will help India attract global investments.
India is one of the largest growing industrial markets in the world. By establishing this strategic partnership with TopSolid India, we aim to provide full support to the industry with our range of customisable products. We want to help companies achieve optimised working levels and assist them by customising our products to help them meet their individual company standards.

This interview was first published in TAGMA Times newsletter 

Q. What challenges are tool makers facing during the COVID-19 pandemic?
The pandemic has put most industries in a very challenging position and tool makers have just been trying to survive. With the operations in the manufacturing industry coming to a standstill as a result of the lockdown, it has led to a loss in production. Besides, companies continue to pay salaries to their employees without getting much support from the government. In fact, monthly wages are the second highest expenditure for the tools industry after raw materials. Companies continue to incur fixed expenditure, such as interest on term loan, interest on working capital on existing borrowings, power (fixed expenses for HT), rent, security, etc., without having production in place. Besides job shops are facing a scarcity of workers, as their skilled staff comprising machine operators, and supervisors, among others, have returned to their native place because of the pandemic. As a result, manufacturing operations are being carried out at 30-40% of the installed capacity. The rate of interest on term loans and working capital limits are not reduced by the banks in line with reduction of Repo rate by the Reserve Bank of India. Due to this, the industry continues to bear high interest rates of 10-11% charged by banks, which otherwise would have been 9%. This is taking a toll on the industry.

Q. In this uncertain time, what measures have you adopted to keep your team productive?
As the saying goes, ‘Time is money’. We have been trying our best to be as productive as possible during this period. For instance, we have tried to incorporate effective use of manpower by assigning the charge of two machines to a single operator. We have been training operators to help them transition from conventional to non-conventional ways of functioning. This training will help in the effective utilisation of automated machines. Besides this, we have in place transportation facility to get our workers to the workplace and back. We have also set up a canteen for them.

Q. What will manufacturing’s new normal be after COVID-19?
COVID-19 has changed the way workplaces function. I think it’s helping companies realise how to work efficiently with limited manpower. So, operating with limited staff is most likely to be the new normal after COVID-19.

Q. What policy changes or support do MSMEs need in such a challenging time in order to revive?
This challenging time has put MSMEs in a very difficult spot and a few policy changes will certainly help. I would like to suggest a reduction in the interest rate across all banks, including cooperative banks, in line with the reduction by the Reserve Bank of India, by 1.5-2%, as I think it will be beneficial. The Reserve Bank of India should defer the term loan up to March 31, 2021, instead of the present duration of six months. The Government of India should offer support in the form of incentives, especially to small or mid-size companies having a turnover of up to ` 150 crores. For instance, they could offer a 25-50% refund in the form of Goods and Services Tax (GST) credit for the GST paid during FY2020. They should chip in towards making payments to the employer’s Provident Fund
(PF) contribution. They could, in fact, waiver the PF contribution of the employer and employee for a period of 9-12 months to manage the expenses incurred during the lockdown period. A subsidy of 5% on the interest charged for a period of 12 months on term loan taken towards expansion in anticipation of growing demand could really help. A 50% salary reimbursement by the government to the employer and reduction in overtime wage rates for a period of 18-24 months would really help us.

This interview was first published in TAGMA Times newsletter 

Q. Please give us an overview of the challenges currently faced by toolmakers during the COVID-19 pandemic and their significance in hampering growth and business prospects?
Indeed it has been a very challenging period for the industry, especially tooling, which is consider people’s business. In tool rooms, people always work in teams. And so, it’s difficult to manage toolmaking with social distancing and without regular follow-up meetings. At Shapers, the situation was challenging too. But we managed it well, as we received good support from our team. The first priority was given to our staff’s health, the next priority was managing the business and dealing with our customers’ urgencies.
Also, due to COVID-19, business targets were disrupted. The repercussions will be felt in the 2020-21 financial year. Toolmakers, who invested recently, will face a greater impact. It’s going to take some time for them to recover their initial investment.

Q. Will campaigns such as ‘Atmanirbhar Bharat’ and Production-Linked Incentive (PLI) Scheme in the electronics sector help domestic toolmakers in the long run?
Well, there are changes for sure. The government seems to be serious about doing something to help the manufacturing industry. They are putting in efforts to understand the toolmaking business. With increasing demands in India, toolmaking can contribute significantly to our country’s GDP growth and create many job opportunities for both mid-scale and small-scale industries.
I feel that there’s a need to focus more on understanding the toolmakers’ problems and constraints. Having said that, increasing localisation from many OEMs to meet ‘Atmanirbhar Bharat’ will create many opportunities for
domestic toolmakers in the long run.

Q. As per the tooling report prepared by TAGMA in association with NRI, the market size of the tool room industry in India is estimated to be ~INR 18,000 crore with ~70% of demand being met domestically and ~30% through imports. What can Indian toolmakers do to reduce imports?
I think that there are some good opportunities for toolmakers to enter areas where we can create options for imports. At least 30% (around INR 6,000 crore) of tooling business will have its own challenges owing to complexity of tooling, local infrastructure, poor supplier base and high demand for shorter lead time. There’s a need to work on investments, developing supplier base, and skill building, among other fronts. This is similar to what is already happening in China and Korea. There’s a need to make strong efforts to develop the existing tool rooms and also build new ones where it will be possible to deliver quality moulds in shorter lead time.
To meet these demands, there’s a need to strengthen our capability and capacity. We also need to invest in technology and the latest equipment to improve our efficiency, which is quite poor at this stage, to shorten the expected mould lead time. Toolmakers also need to upgrade their knowledge to develop complex and large tooling in India. Currently, a major part of large tools is imported from China and Korea.

Q. The industry is currently facing many challenges regarding availability of adequate finance, availability of skilled manpower, lack of industry-friendly policies and export incentives. Have the government and associations taken up any initiatives to help the industry?
As I mentioned earlier, the government is making some good efforts to strengthen our industry. In fact, we can see some positive actions with respect to ‘Make in India’. The government policy for localisation is also pushing OEMs in India to promote local manufacturing, thereby trying to reduce imports of finished moulds, and promoting exports from India. Skill development programmes are being undertaken at various levels. One major decision to bring more industries under the MSME umbrella has proved to be a game-changer, as the move is likely to benefit most tool rooms in India. At the same time, we also expect more support by increasing the import tax on finished moulds, and simplifying the process to import steel and mould elements so that tool rooms can get raw materials faster.
When talking about associations, I think TAGMA is already working positively under the leadership of Mr. D. K. Sharma and it can specifically play a big role in taking steps with government bodies to improve the situation for
the toolmaking industry.

Q. Most major global auto manufacturing countries have a strong domestic tooling industry. India is an exception, as a significant part of the tooling demand is still met via imports. What are the reasons for the same? How can we overcome this situation?
Compared to China and Korea, our tooling industry has many limitations due to lack of adequate industrial support. We also depend on imports for mould elements. So, we need to build a strong supporting industry
to avoid heavy investments and to reduce lead time. We also have limitations in processing post-moulding requirements (like special laser cutting/ complex assemblies, special graining, etc.), which we need to develop
in India.
Toolmakers need to purchase many mould elements from Europe, Japan and China by paying in advance. This makes it difficult for many toolmakers against long receivables from customers. Besides, the tooling payment terms are not attractive to increase business. There’s a need to improve these payment terms, as huge investments will otherwise be required to develop those tools.

Q. The automotive industry is going through an uncertain time. In the light of this, what other emerging sectors could toolmakers explore apart from automotive?
I think medical equipment, aerospace, defence, railways, real estate (changing need for interiors) and packaging industry can create additional business opportunities for toolmakers. However, to promote such business, we need to create a strong platform where toolmakers can get to understand the needs of these segments and prepare accordingly.

Q. Industry 4.0 and hybrid manufacturing have been around for a long time now. Do you think companies will opt for automation post COVID-19?
Yes, automation post COVID-19 will be a major focus considering our experience with the lockdown. We need to prepare ourselves for any possible pandemic or crisis in future. This will also ensure safety of people as it will
reduce physical contact and create a safer working environment. As said by many experts, the toolmaking business will go through big changes in the next few years.

Q. What short and long-term opportunities do you see amid the COVID-19 crisis and growing geopolitical situation?
In the short term, we can see some opportunities due to the disturbed supply chain. Now, toolmakers can support each other to come out of this crisis and strengthen our current supply chain. There is also an opportunity to develop mould elements and mould base parts to avoid imports.
In the long term, we should strongly work on, automation, adopting the latest technology in our industry and increasing localisation to maintain enough control to support the growing demands due to the potential
geopolitical situation. We can also observe the changing market demands and expect more demands for exports to Europe, US and other countries.

This interview was first published in TAGMA Times newsletter 

Q. Can you tell us about your company?
FIBRO India, a 100% subsidiary of FIBRO GmbH, was established in 2008. Initially, our company operated from a rented space, but, in 2013, we acquired our own premises to work from. In 2017, we expanded to incorporate our second phase of operations, which included manufacturing rotary tables for the automation industry. Over
the years, we added newer products to our manufacturing list depending on the domestic as well as international markets’ demands. Staying in line with our company’s motto, FIBRO India focuses on producing quality products
with ‘German Precision, Crafted in India’. Our headquarters in Germany offers us all the encouragement and technical support we need in order to do so.

Q. The pandemic has affected businesses globally. How is FIBRO India dealing with the current business environment?
Everything was going well till 2018. However, in 2019, owing to various factors, the global economy began to witness a decline in growth. And, the COVID-19 outbreak, only worsened the scenario. The world is already facing the consequences of the pandemic. Fortunately, for us, we had already started re-strategising our business plans from 2019 itself. For instance, we decided to focus on e-commerce and developed our webshop to help customers place their orders from anywhere. We also started capitalising on digital marketing to grow our presence on social media and conduct webinars to educate customers on our new offerings. Additionally, we began developing products required by the market but were not made in India.
These strategies proved very beneficial during the lockdown. The webinars on our new product offerings received an overwhelming response. We started receiving orders for those products as soon as the industry resumed operations. We then took up similar products for development to expand our range of offerings. In fact, we recently launched our new Aerial CAM unit on the digital platform.
For the time being, we put on hold our investment plans and instead of buying machinery and equipment to manufacture some components in-house, we have asked our vendors to supply those critical components to us.
Also, many companies have been downsizing their staff, but FIBRO India has not done so. Rather, we are looking to equip our company with additional talented employees.

Q. What lessons has the lockdown taught you?
The most important lesson we learnt is that except manufacturing, most other operational functions such as sales and marketing, purchase, and accounts design, among others, can be performed on the digital platform without being present in the office/factory premises. And now, with the ‘Smart Factory’ in place, manufacturing operations can be held on the shop floor with a minimum physical presence. In fact, post COVID-19, this is going to be the new normal for the manufacturing industry, apart from the use of masks, sanitizers, and maintaining social distancing. A lot is already beginning to change. Even many MSMEs, which were reluctant to adopt automation, are turning to low-cost automation solutions to deal with the situation.

Q. Do you have any suggestions for the government to help the economy revive?
The government is already taking commendable steps to support the MSME sector. For starters, it has redefined the criteria for MSMEs—a move that will help many borderline industries expand. The government has also directed banks to extend the credit limits without asking for additional documentation. Economists have estimated that it would take a couple of years to reach the pre-COVID economic status, but with the current tempo, the Indian engineering industry might arrive at that point in less than six months.

Q. COVID-19 has adversely impacted the global supply chain. Businesses across the world are struggling to get on track. How could India rise up to the challenge?
The pandemic has certainly disrupted the flow of the global supply chain. Its impact on the manufacturing sector is clearly evident. But, on a brighter note, it has also opened doors for our local industries to develop. India will face new challenges, but we have to work towards overcoming them to make ‘Atmanirbhar Bharat’ a reality. It will take some time for the ‘Vocal for Local’ initiative to materialise, but, once it does, it will see the rise of start-ups contributing manifold to the economy and result in the creation of many more employment opportunities.
As a step in this direction, the government has already undertaken initiatives to cut red tape by making most of the processes online. This has ensured that MSME owners do not end up wasting time visiting government offices for sanctions.
As per the ‘Doing Business’ 2020 report, India jumped 14 places to the 63rd position in the ease of doing business rankings. This certainly indicates that India is able to attract FDI in the manufacturing sector. But this is only one side of the coin. The government still has to tackle major roadblocks such as equipping the country with skilled manpower, infrastructure, uninterrupted stabilised power supply, roadways, seaways and airports, etc. It has already taken up the implementation projects in roadways and development of ports, but it will take a few more years for it to complete. The roadmap for India to become the global manufacturing hub is already set.

Q. What can Indian tool makers learn from the current scenario?
Indian tool makers have a lot to learn. The most important lesson is that tool makers need to train the young aspiring tool makers the tricks of the smart manufacturing trade. Tool making is one of the most creative fields and should be able to attract young talent.
Recently, I read a newspaper report which stated that more than 30% seats in engineering colleges are vacant. This indicates that there are no jobs for engineers and hence, it is no more as lucrative a career option as it used to be. It is a simple demand and supply equation. There is more supply of engineers but not much demand for them.
The quality of education is another big issue. The government has already announced a new education policy to be implemented from 2022. This means that it will take at least 10 years for quality engineering graduates in all disciplines to be made available for the industry. But, better late than never. So, for now, it’s best that every industry trains their workers/ engineers and staff for at least 6 to 12 months before they are expected to start delivering results.

Q. How do you foresee the future of Indian manufacturing industry?
As per the fourth census of MSMEs report published in 2012, MSMEs are the second largest employers after agriculture, accounting for 72% services and 28% manufacturing jobs. They also account for 45% of total industrial production, 40% of total exports and significantly contribute to the GDP. I believe some good incentives like low-cost finance, increased duty drawback, etc., would certainly make MSMEs more cost competitive and help them compete with other countries like Vietnam, Indonesia, and China in the international market.
Considering the current international economic and political situation, multinationals are planning to set up multiple manufacturing locations in different countries so that their businesses remain unaffected. As such, they would establish a supply chain in different countries. India can certainly take advantage of this situation.

This interview was first published in TAGMA Times newsletter 

“The Indian toolmakers and SMEs should make themselves leaner, more productive, more reliable, more competent technically and more competitive in terms of enhancing their products’ quality. This will help them to not only tackle the ongoing situation but will also make them future-ready for encashing the upcoming opportunities,” says Parveen Satija, Managing Director, Stitch Overseas Pvt. Ltd in conversation with Nishant Kashyap.

Please give us an overview of the challenges currently being faced by toolmakers during the COVID-19 pandemic.
The industry has been going through a very rough phase since the recent past and the pandemic has further hit the industry hard. Everything came to a standstill during the lockdown. Even after a relaxation period in the lockdown, toolmakers are struggling to restart work owing to limited availability of manpower. Also, it is difficult to practice social distancing in tool rooms due to the nature of work. Cash flow is a major problem throughout the supply chain, as OEMs have not been able to respond because of various limitations during the lockdown. In addition, there is uncertainty as well as delays in the new projects from OEMs.

How will automation in manufacturing help with the COVID-19 response?
COVID-19 has made us think and re-strategise manufacturing processes. We have to practice social distancing as well as manage manpower shortage. With these limitations, implementing automation wherever feasible is the only way. Automation – whether by way of better software or by process automation – will shift the methodology of manufacturing in a tool room. It is a known fact that using automation will result in lesser dependency on manpower. It can improve the quality of deliverables, and repeatability of process and productivity.

But, why are some manufacturers reluctant to use automation in their manufacturing processes? Automation requires a lot of initial capital investment, which is one of the biggest deterrents for manufacturers. To encourage manufacturers to adopt automation, OEMs need to lead the way. They will have to handhold and nurture tool rooms by investing in teaching the best systems applicable and the automation practices. If tool makers earn higher profits, they will be happy to reinvest in their manufacturing systems and finally grow qualitatively with the industry.

What short and long-term opportunities do you see amid this crisis situation?
The COVID-19 pandemic hit manufacturers in an unexpected and unprecedented way. For the first time in the history of modern manufacturing, demand, supply and workforce availability are affected globally at the same time. However, on the brighter side, this pandemic has forced companies to utilise their time in more efficient and effective ways. Like, for instance, in conducting online training of employees to help companies re-strategise on ways to achieve their goals.

Moreover, the ongoing pandemic has generated Anti-China sentiments globally. Many customers have reduced or stopped outsourcing from China. This could actually be a big opportunity for the Indian manufacturing industry with the Government of India’s ‘Atmanirbhar Bharat Abhiyan’ playing the role of a catalyst. But it all depends on how the Indian manufacturing industry plans to encash on this opportunity.

In this uncertain time, what measures have you adopted to keep your team productive?
This pandemic has impacted everyone not only financially but mentally as well. Therefore, it is very important to keep all the employees motivated. We have been providing various online training sessions for all the employees at regular intervals.

Some of our employees have reported back to office, while some are still working from home. Therefore, it’s important to ensure that each and every employee feels connected to the workplace. For this purpose, we have been organising periodic interactions amongst all. We have also arranged for daily online meetings during which all of our employees from various locations pan-India connect and interact with each other to share their working experience, insights, best practices and business trends.

What will manufacturing’s new normal be after COVID-19?
The manufacturing industry wasn’t prepared to deal with a crisis of this stature. The crucial aspects of production often rely on humans who are now restricted, or even forbidden, from entering factories. Where automation is applied to assembly and inspection, manufacturers struggle with antiquated production lines that can’t be reconfigured easily. The new normal will be with modern automation that will help manufacturers quickly scale up production using modular automation, better software and flexible manufacturing lines that are less reliant on humans; thus, upgrading from traditional assembly and inspection processes. Also, the new normal will be “digital mode normal”. This would include, but not be limited to, virtual shifts, working from home, less travel, online meetings, virtual exhibitions and autonomous working, among others.

What policy changes or support do MSMEs need in such a challenging time in order to revive?
It’s true that the government’s incentives have helped some MSMEs with loans to keep their enterprise going. However, unless the recovery is quick, many MSMEs may not be able to service the loans. As a result, they would not only end up losing their net worth, but also their assets which would have been collateralised.

One of the biggest initiatives by the government was to change the definition of MSMEs, which now includes a greater number of firms within the formal classification of MSMEs. This is expected to help in the transition of the ‘mindset’ of small and medium firms. They are now aiming to grow without the fear of losing out on the benefits given to MSMEs.

However, these steps are not sufficient. The current situation demands that in order to restart the MSMEs to their full capacity, the government could help bring back the migrant workers. Easy credit availability will help many save their businesses, as today’s challenge is paying salaries, discharging vendor bills, and other fixed expenses. While some banks have already opened such emergency relief measures for this sector, wider credit guarantee schemes backed up by the government are still required. A wage protection scheme for at least six months could be the need of the hour. If not complete wages, the government needs to help MSMEs pay partial survival wages during these critical months. Also, the government could consider providing an edge to MSMEs that respect government compliances and have good conduct. This will motivate others to improve on compliances and conduct in the future. The government could consider slapping the anti-dumping duty to discourage Chinese manufacturers and encourage the Indian manufacturing industry.

There have been several discussions about the disturbing supply chain globally. Now, companies are looking to diversify their resources to many countries instead of depending on only one. Do you think such a scenario could benefit India? Also, what policies will be needed to attract maximum investment to the country?
The global Anti-China sentiments and the global supply chain disruption have prompted everyone to diversify their resources and suppliers. This situation provides an excellent opportunity to encash on. India could certainly stand to benefit from this if the Government of India succeeds in luring companies that are looking to shift their manufacturing base.

A Nomura Group Study found that in 2019, of the 56 companies that shifted their production out of China, only 3 invested in India, while 26 went to Vietnam, 11 to Taiwan, 8 to Thailand and 6 to Mexico. In April 2020, Nikkei noted that of the 1,000 firms that were planning to leave China and invest in Asian countries, only 300 of them were seriously thinking of investing in India.

This is a very serious concern to the ‘Make in India’ initiative.

India has been overplaying its demographic advantage for too long. Unlike China, its market is not large or rich enough to allow economies of scale for manufacturers. Indian wages are lower compared to China, but so is its labour productivity. There is also the challenge of finding the right skilled manpower and thereafter, putting the new workers through training specific to their production process. Further considerations include transparency in all compliances, governmental support, a favourable tax regime and legal framework and the ease and speed of starting a business in a new country.

Other countries have rules and laws simple to understand and give permissions fast. India needs to improve on this account. We frame unnecessarily detailed and highly complicated laws (with enough interpretation loopholes) and combine that with a lethargic enforcement mechanism.

In my personal interaction, my Japanese counterpart was quoted saying that in Vietnam, there is a single point of contact, a person who takes care of everything from the government’s side.

India needs to further liberalise trade, spend more on infrastructure construction, reform land and labour laws, which will all lure foreign investors. Legal reforms, liberation and favourable taxes are necessary for economies to reach their full potential.

In India, there is heavy dependence on road transportation, but if modern rail and water transportation are more readily available, it can save businesses significant costs and time.

Moreover, the culture of manufacturing, which is prevalent in countries like Germany, Japan, China and South Korea is missing in India. This means that not only must there be strong and readily available vocational training programmes to equip those interested with the necessary skills, but that their smartest citizens must want to consider joining this sector.

How do you think should tool makers or any manufacturing SMEs tackle the situation?
They should be ready to brace new technologies, automation, software, digitalisation or digital transfor mation. They need to upgrade the skills of their team by conducting skill development programmes. The quality control orders get notified, but enforcement remains normal. The manufacturing culture also needs to be transformed. In short, the Indian toolmakers and SMEs should make themselves leaner, more productive, more reliable, more competent technically and more competitive in terms of enhancing their products’ quality. This will help them to not only tackle the ongoing situation but will also make them future ready for encashing the upcoming opportunities.

An important lesson you have learned from the COVID-19 outbreak?
We must understand the importance of prioritising health and research. We should never put all of our eggs in one basket, as the dependency of the globe on China has proved to be rather detrimental. And last, but not the least, we must learn to respect Mother Earth.

In the coming days, what changes are you planning to make to your production and business operations?
We have already started remodeling our business strategies. We organise weekly webinars for our customers. Daily online meetings within the company and with the customers is now a new routine. Moreover, we are planning to digitalise all our product promotions by listing online and are strengthening our dependency on “digital mode”, which will be an important contribution to enhance efficiency and transparency.

Note: This interview was first published in TAGMA Times newsletter