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Transcript of Search - Investment Destination - Aurangabad - Supplement - June 2012
ote this: Audi invests €10 million to scale up capacity at its facility by 50%; Perkins India, a wholly owned subsidiary of Caterpillar Inc, headquartered in Peterborough, UK, is investing `780 crore to set up a greenfield facility to manufacture diesel and gas engines; Greaves Cotton is setting up a new engine manufacturing unit with an investment of `50 crore; Siemens is investing `250 million (`25 crore) in a greenfield high voltage instrument transformer factory; Endress+Hauser is setting up production facilities for level, pressure
and flow measurement engineering equipment with an investment of €19 million; Varroc Group is pumping `150 crore for its new plant to produce front axle beams and crankshafts; Hindalco-Almex Aerospace is setting up a state-of-the-art plant to manufacture hard aluminium alloy billets and slabs…Aurangabad is almost becoming the magnet for manufacturers!
While multinationals are making their presence felt, the proposed Marathwada Auto Cluster Project, with an investment of around `80+ crore in the region will act as an enabler for SMEs. The state-of-the-art product and process development facility will immensely help SMEs to upgrade themselves to the world standards given the fact that individually they will not be able to invest so much on the product and process development. That’s a big plus for the region, as thriving SMEs add to the region’s inclusive growth advantage.
Another shining example is the fact that the five-star industrial estate, Shendra, is part of the development map, as it has been identified as the project location for the Japanese Smart Communities or Eco City project. Shendra, near Aurangabad, will get a rare recognition as it has been chosen by the Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) among the other two cities—one in Haryana and the other in Gujarat. The project envisages the introduction of new innovative technologies through Smart Communities to achieve sustainable development and improve the quality of life.
With so much happening, the journey of transformation for Aurangabad from being a developing region to becoming a matured industrial base was swift. The city contributes `7,000 crore to the government’s kitty, which includes the taxes and the earnings. Almost 70% of Marathwada’s industrialisation has happened in Aurangabad. This is the reason why Aurangabad and the regions in and around it not only add to the economy of Aurangabad, but also contribute to the GDP of India. With Aurangabad brimming with growth, positivities and potential, here’s presenting an exclusive content spread towards garnering more growth for the region!
NTHE AURA OF AURANGABAD
Archana [email protected]
Opinions & MoreEDITORIAL3
CONTENTS
CNC MARKETOffering Manufacturers A Cutting Edge
8
AURANGABAD HIGHLIGHTS10
STRONGHOLD OF MAHARASHTRAThe Economic Powerhouse Of Maharashtra
12
INSPIRING EXCELLENCE Perseverance Breeds Success
14
INVESTMENTSThe Rising Industrial Giant
16
PRODUCT UPDATE30
‘Aurangabad Has A Fighting Spirit’Parvesh Batra,President of Aurangabad Industrial Suppliers Association (AISA)
22
‘Matured Industrialisation Has Taken Aurangabad To New Heights’Mukund Kulkarni,President, Chamber of Marathwada Industries and Agriculture (CMIA)
23
‘Aurangabad Has Now Emerged As One Of The Finest Machining Hubs’Jayant Soni,MD, Akshay Industrial Enterprises Pvt Ltd
24
‘Aurangabad Will Continue Its Journey Towards Rapid Growth’Shirish Tambe,GM, Osborn Lippert India Pvt Ltd
25
‘Aurangabad Has Ample Potential To Grow Further’B Ravindra Naidu,Joint- President, Birla PrecisionTechnologies Limited
26
‘Looking At Where Things Stand Currently, The Sky Looks Bright For Aurangabad’Avinash Vishwasrao Chavan,Founder, Swajit Abrasives Pvt Ltd
27
‘Aurangabad Will Truly Emerge Once The Delhi-Mumbai Industrial Corridor Is Ready’Sudipto Mukherjee,GM-Marketing, Lombardini-Kohler
28
ADVERTISERS’ & PRODUCT INDEXAlphabetical Listing Of Products Presented In The Issue
34
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8 CNC MARKET SEARCH - Supplement June 2012
he advent of the
automotive industry has
created manifold growth
prospects for industries
in Aurangabad. And
the influx of industries, such as
heavy engineering and FMCG, are
further fuelling the demand for niche
segments, such as machine tools, in
and around the region. Aurangabad
is said to have around 2,000 CNC
machines—the dominant users mainly
being players in the automotive
industry. Based on the current trends
and emerging demands, the CNC
machines segment is emerging as a
key driver of growth for industries in
Aurangabad.
According to B Ravindra Naidu,
Joint President, Birla Precision
Technologies Ltd, “Nowadays, CNC
machining has become the most
crucial element, considering the high
precision involved in the production
process and the kind of accuracy
desired by the customer. Though in
the start, it seemed a little expensive,
but going by the returns you get in the
long term, it is worth investing in such
precision machine tools.”
Parvesh Batra, President,
Aurangabad Industrial Suppliers
Association (AISA), says, “We all
agree to the fact that when there are
tremendous opportunities waiting
to be tapped, innovative methods to
enhance productivity are bound to take
centre stage. The deployment of CNC
machines is among one of those crucial
factors for ensuring the same.
THE GROWTH BANDWAGONAchievement of higher growth and
increased share of CNC machines
in the overall output surmises the
commitment to provide competitive
manufacturing solutions, and, that
too, at cost-effective prices. In terms
of key product segments, high growth
areas for CNC machining include
turning centres, machining centres and
grinding machines, among others.
Lathe machines, router machines,
foam cutting machines and CNC
machines, catering to surface finishing
and grinding, have been doing the
rounds in Aurangabad manufacturing
units since the last few years. To this,
Milind Umadikar, Owner, Mechatron,
adds, “Auto forms a major cluster and
every big or small company wants
to be at par with its competitors.”
Mukund Kulkarni, President,
Chamber of Marathwada Industries
and Agriculture (CMIA), opines,
“The stupendous growth attained in
the past few years has led to the rise of
various first generation entrepreneurs
in Aurangabad. They are updated with
the industry’s scenario and the latest
technological advancements. This
can also be cited as one of the major
reasons for the use of various latest
CNC machines in Aurangabad today.”
CNCs IN SHOP FLOORS SMEs have also welcomed CNC
machines into their shop floors.
“You cannot compete with your
contemporaries if you are not aware
of the latest technology in the business
today,” avers Umadikar.
Although CNC machines are
difficult to programme, they require
less manual intervention to operate—
an advantage in a region that
significantly lacks skilled labour that
could explain the rise in deployment
of these machines. While almost
all the industries in Aurangabad
have opted for CNC machines, a
major chunk of around 70–75%
go to automotive players and auto
components manufacturers here. With
majors players like Bajaj Auto, Skoda
and Sanjeev Auto setting up their base
in the region, the adoption of CNC
machines saw a new light in this
growing industrial hub.
BEHOLDING COLOSSAL POTENTIALWith the major industries wanting to
set up base in the region, machine tools
manufacturers can definitely prepare
themselves to cater to the burgeoning
demands. Substantiating the fact,
Mukund Sangvikar, Proprietor, Jyoti
Marketing Agency, adds, “Various
new businesses will come up in
Aurangabad. Also, the auto industry is
set to grow further in the next couple
of years. Both mean that more and
more sophisticated machines & CNC
machines will be used. People see
them as a one-time investment, which
will help them in the long run.” After
all, it is all about making customers
happy.
By adopting CNC machines, not
only reduces cost, but a new level
of accuracy is also attained. And as
far as the industrial development of
Aurangabad is concerned, it has
been growing at a rate of 14% per
year since the last couple of years…a
growth momentum which is likely to
continue in the coming years. This
trend augurs well for the machine
tools industry. In the end, the trend
is here to stay and would grow with
increasing competition and expansions
by existing players.
T
Offering Manufacturers A Cutting EdgeHousing over 2,000 CNC machines, Aurangabad has become one of the most promising destinations for machine tool manufacturers in India. With the burgeoning growth witnessed in industries like automotive, heavy engineering and FMCG, the growth prospects for machine tools are bound to witness a high in the years to come.
NISHI RATH
10 AURANGABAD HIGHLIGHTS SEARCH - Supplement June 2012
Bajaj Auto unveiled their first-ever
four-wheeler in January this year. The
RE60 will be manufactured in Bajaj’s
plant in Aurangabad. The four-seater
RE60 targets commercial users and
three-wheeled vehicle owners in India
and claims low carbon emissions and
fuel efficiency. The RE60’s price, at
an estimated `1 lakh, could lead to
tough competition in the segment.
The RE60 was developed under the
ultra low cost (ULC) car project with
Nissan-Renault and Bajaj to be the
three stake holders. However, Renault-
Nissan are yet to confirm whether
they would sell the RE60 under their
respective brands. Originally, the plan
was that Bajaj Auto would develop
and manufacture the ULC car while
Renault-Nissan would distribute it
under their respective brand names.
However, it remains to be seen
what happens to this arrangement as
Renault-Nissan are yet to come out
with a clear picture on this.
With the government giving the
much needed go ahead for the
proposed Shendra-Bidkin Mega
Industrial Park, Aurangabad is
geared up for more growth.
The nod from the government
came in October 2011 in order
to initiate a pilot project with the
Aurangabad belt. As part of the
Delhi-MumbaiIndustrial Corridor
(DMIC) the state has decided to
develop the Shendra-Bidkin belt as
planned industrial townships to act
as one of the major investment node.
It is being developed with Japanese
assistance.
The project will generate around
3 lakh jobs in technical, non-
technical, trained and untrained
sectors. Apart from this the city
will get connectivity with other
districts through four-and six-
lane roads, transportation through
trains will be convenient due to the
establishment of railway seeding, it
will have quality basic amenities and
educational facilities and 24-hour
uninterrupted electricity and water
supply.
The Mega Park will be developed
on 10,000 hectares of land and the
district administration has already
started acquiring land. Efforts are to
acquire land in Bidkin, Nijalgaon,
Bannitanda, Banglatanda and
Nandalgaon.
Out of the 10,000 hectares of
land needed, 813 hectares will be
acquired for the first phase, 2,363
for the second and 6,847 for the
third and final phase. Water from
Jayakwadi reservoir will be supplied
to this project. Around 51 TMCM
water will be required for the project
which is less than 2% of the total
storage of Jayakwadi reservoir,
according to district administration
sources.
Nagpur Automotive Industries
Private Limited has acquired 100% in
Adhunik Metaliks’ forging subsidiary -
Neepaz V Forge India Limited for an
enterprise value of `230 crore.
The transaction is in line with
Adhunik Group’s overall strategy to
divest its non-core assets and focus on
its core businesses. Adhunik Metaliks
bought a majority stake in V Cube
Forge India Ltd in August 2007 and
the company was renamed as Neepaz
V Forge.
Neepaz V Forge Limited has
manufacturing facilities in Aurangabad
to manufacture various automotive
products like crank shafts, under
brackets, steering knuckles, steering
arms, tie rod arms, cam shafts, spindles
and several other forgings for major
OEMs like Tata Motors Ltd, Ashok
Leyland, Mahindra & Mahindra, John
Deere, Escorts and Dana Spicer.
It also supplies products to non
automotive companies such as Tractors
Engineers Ltd and Greaves Cotton.
FIRST FOUR WHEELER FROM BAJAJ AUTO COULD HIT THE MARKET DURING THE THIRD QUARTER OF 2012 SHENDRA–BIDKIN MEGA
INDUSTRIAL PARK TO BOOST GROWTH
NAGPUR AUTOMOTIVE ACQUIRES ADHUNIK METALIKS FOR ENTERPRISE VALUE OF `230 CRORE
RE60 at a glanceRE60 will be manufactured in Bajaj’s plant in Aurangabad. The four-seater targets commercial users and three-wheeled vehicle owners in India and claims low carbon emissions and fuel effi ciency. It is priced at an estimated Rs 1 lakh.
Varroc Group signed a deal with Visteon Corporation, a US-based global
automotive components maker to acquire their global lighting business in cash.
The deal is expected to be closed around the third quarter of 2012.
“I am very excited about this acquisition since it is a major step in our vision
of achieving $4 Billion revenue in 2020. It also demonstrates our commitment
to invest in technologies and global capabilities to grow our businesses. Our
annual revenues will be close to `6,000 crore with this acquisition,” said Tarang
Jain, MD, Varroc Group in an official statement.
With this acquisition, Varroc group will have 31 manufacturing plants
and 4 engineering facilities worldwide. The acquired business entities include
manufacturing and engineering facilities in Nový Jičín and Rychvald, Czech
Republic; Monterrey, Mexico; and Pune, India. These 6 manufacturing
operations employing over 4,000 people which includes an engineering centre
with over 400 engineers. The acquisition will also help Varroc enter into global
automotive exterior lighting market for 4 wheelers. The company presently has
strong presence in two wheeler lighting business.
VARROC GROUP ACQUIRES VISTEON’S GLOBAL LIGHTING BUSINESS
12 STRONGHOLD OF MAHARASHTRA SEARCH - Supplement June 2012
he Mara thwada
region was merged
with Maharashtra in
1960. At that time,
industrialisation had
just begun in the region and the
Maharashtra Industrial Development
Corporation (MIDC) had started the
process of acquiring land for setting
up industrial estates in the area. This
move, has, over the years, led to the
tremendous growth of Aurangabad.
It’s no wonder then that the city is
now one of the classic examples
of sincere efforts towards balanced
industrial growth.
THE SPECIAL ECONOMIC ZONES (SEZs)The efforts of MIDC have produced
some brilliant results. Today,
Aurangabad boasts of significant
industrial areas, such as Shendra,
Chikalthana and Waluj MIDC
industrial estates. These areas, over
the years, have witnessed a steady
flow of investments and are home to
both, national as well as international
manufacturing players. The sectors
that have attracted major investment in
the region are automotive, engineering
and pharmaceutical, among others.
Over the years, the place has
emerged as a preferable choice for
automakers. Aurangabad made
headlines in 2010, when a group of
more than 150 local businessmen
decided to buy Mercedes-Benz car
each, spending nearly $15 million.
This instantly put Aurangabad on
the world map. This order not only
attracted investments from Mercedes-
Benz, but also forced several other
major players to give a serious thought
to this region. And when a group
of young entrepreneurs, including
builders, industrialists, doctors and
other professionals booked 101 BMW
cars in a single day, it proved that for
companies looking at expansion and
growth, Aurangabad is the place to be.
“In the last few years, the engineering
and automotive sectors have picked
up really well. It all started with
Bajaj, which set up a manufacturing
facility here. This facility acted as an
inspiration for the entire industrial
fraternity to follow suit. Later, Skoda
forayed into Aurangabad—a move
which significantly helped SMEs
dealing in auto parts to thrive,”
says Mukund Kulkarni, President,
Chamber of Marathwada Industries
and Agriculture (CMIA).
The city is the third in Maharashtra
after Pune and Nashik to offer an
automotive cluster. Skoda Auto
assembles its premium models such as
Superb, Laura and Yeti; Passat and Jetta
for Volkswagen; and A4, A6 and Q5
for Audi from its Aurangabad facility.
Recently, Bajaj Auto has also launched
its first four-wheeler, manufactured in
its facility in Aurangabad.
Apart from automobile, pharma
giants such as Wockhardt, Lupin
and Glenmark have also made their
presence felt in the region. In fact
in 2004, Wockhardt opened India’s
largest biopharmaceutical complex
with six dedicated manufacturing
plants at Aurangabad. The `200 crore
state-of-the-art biopharmaceutical
complex is spread over 3 lakh sqft.
INFORMATION TECHNOLOGY TO ACT AS A GROWTH CATALYSTIn recent years, the city has witnessed
T
Aurangabad celebrated 50 years of industrial development in April this year. From being just a centre of tourist attraction to a rapidly growing manufacturing hub, the journey for Aurangabad has been glorious. With major automobile, consumer durable and pharmaceutical companies setting up their manufacturing base here, the city has been growing at the rate of 14% since the past few years and is expected to become a major industrial hub in years to come. A report…
NISHI RATH
13STRONGHOLD OF MAHARASHTRASEARCH - Supplement June 2012
a rapid growth in Information
Technology (IT) and it is expected
that the area would soon emerge as a
major IT hub. And with the major IT
destinations such as Bengaluru, Pune
and Hyderabad reaching a saturation
point, software professionals are
looking for new options. In such a case,
Aurangabad offers immense scope to
emerge as a growing IT centre.
“The IT sector had started taking
baby steps in Aurangabad, until the
STPI came up and gave it the much
needed push. With Aurangabad
growing and major investment
happening, it is just a matter of time
until the area starts attracting the
attention of IT giants. Few more
years and we expect Aurangabad to
be added to the list of rapidly growing
IT centres in India,” says Jayant Soni,
MD, Akshay Industrial Enterprises.
“The next big thing, after pharma
and automobile, is definitely
IT. The sector is gaining
ground here and will help raise
the growth rate in a couple
of years,” says Parvesh Batra,
VP, Aurangabad Industrial
Suppliers Association.
“Not only professionals,
medium-sized companies and
first generation entrepreneurs,
who want to try their luck
in this industry, prefer
Aurangabad because the place has
lots of opportunities and is cheaper as
compared to other developing cities. A
good future awaits the industry here,”
adds Batra.
STRENGTHS AND WEAKNESSESAccording to industry sources, the
historical background of the place
helps attract foreign investors. Besides,
Aurangabad also boasts of a very strong
brigade of young and enthusiastic first
generation entrepreneurs. They not
only bring in new ideas, but also help
foster rapid growth.
“Availability of resources like
land and economic labour is one of
the very important factors that are
aiding the growth rate. Apart from
this, a very good dealership network
has contributed towards the overall
industrial development,” says Rahul
Dhoot, MD, Dhoot Transmission.
However, like any other region,
Aurangabad also suffers from certain
drawbacks such as lack of connectivity
and infrastructure. Also, skilled
manpower is another problem area
though many believe that with the
coming up of technical institutes, the
availability of skilled labour will not be
a problem.
The city’s poor infrastructure is not
attracting talent. To address this issue,
an Aurangabad Regional Development
Authority needs to be formed and
`1,500 crore could be allotted as
funds for the region’s development (it
is noteworthy to mention here that
the city contributes approximately
`3,800 crore to the State Government’s
kitty only through taxes). Also, the
most vital mode of transportation—
roads—is in a poor state and needs
urgent attention. To improve
communication, a six-lane could be
added along the Pune-Aurangabad
route; whereas the Manmad-Jalna rail
track should be two tracks with siding
at Shendra and Jalna industrial area.
“We have all the basic requirements
in place, but connectivity to the
industrial areas is a major issue. Apart
from this, unavailability of R&D/
technology upgradation facilities and
skilled labour at times play spoilsport,”
avers Shirish Tambe, GM, Osborn
Lippert (India) Pvt Ltd.
“There are various good engineering
colleges and technical institutes that
are trying to fill the void between
the demand and availability of skilled
labour in the area. Given a year or
two, the city will have some of the
best talent to boast of,” claims Mohini
Kelkar, MD, GrindMaster Pvt Ltd.
A PROMISING FUTUREAurangabad has become an emblem
of an altogether different Maharashtra
—the booming, increasingly
urbanised economic powerhouse.
With the industrial presence of
significant corporate players, the city
is buzzing with activity. The special
initiatives taken by the State
Government have and will continue
to play a vital role in promoting
Aurangabad as a city with a
promising future. Keeping in view
all the congenial factors necessary for
setting up corporate infrastructure,
Aurangabad is all set to
witness tremendous growth
within a few years time.
Sectors like automotive
and engineering, pharma and
seed/agro have a lot of growth
potential and this trend is
likely to continue in years to
come. Also, in some years,
the Delhi-Mumbai Industrial
Corridor (DMIC) will be
functional and Shrenda-2
will be active. These will come as a
major boost to the growing city and
create more opportunities. Besides,
Aurangabad is also set to see sizeable
IT companies making a foray into the
industrial city. I would also like to
add that the International Convention
Centre will come into existence and
Aurangabad will be part of the elite
cities’ list to hold exhibitions & trade
shows and will make it to the world
map.
As rightly put by Debashish
Mitra, Head – Sales & Marketing,
Mercedes-Benz, India, “The story of
Aurangabad is the story of India.”
What makes Aurangabad an attractive investment destination… Availability of ample land for new projects Good educational institutions and lifestyle amenities Strong air and rail connectivity A Software Technology Park and all related amenities Presence of an inland container depot, which has seen
a sharp increase in exports from Aurangabad.
14 INSPIRING EXCELLENCE SEARCH - Supplement June 2012
merican writer William
A Ward once said,
“Adversity causes some
men to break, others to
break records.” The same
holds true for Umesh Dasarathi, who
not only established Rucha Group ,but
also continues to lead it to great heights.
It was the sheer passion for engineering
knowledge and craze for creativity that
inspired him to keep going. However,
like every successful venture, this too
faced its share of troubled times. From
the rigid attitude of the workforce to
the logistics issues apart from the fear
of failure, Dasarathi faced it all.
“The initial days were
tough. There was scarcity
of ski l led manpower,
non-availability of proper
infrastructure facilities and the
anxiety to start a new venture, and
what not. However, I took all that
in my stride and learnt a lot of
things. The key to our success lies
more in the fact that we slowly,
but steadily, kept working with
a conviction to achieve the desired
results,” says Dasarathi.
LAURELS BAGGEDRucha Group began its operations
with a single employee and now has
a full-fledged team of 1,000 people. It
boasts of major automotive players as
its clients, including Bajaj Auto Ltd,
Piaggio Vehicles Pvt Ltd, Automotive
Stampings & Assemblies Ltd, Walker
Exhaust System Ltd and Lombardini
India Pvt Ltd, among others.
“From 1991–94, we were in the
service sector. Later, we entered the
manufacturing segment and gradually
diversified into surface coating,
machining, plastic moulding and blow
moulding among others,” he adds.
THE FOCUS AREASRucha Group, today, majorly deals
with complex and precision sheet metal
assemblies, machined components,
plastic moulding parts, blow moulded
parts, surface coating tool room and
so on. The Group is one of the
leading players in the segment. “We
mainly cater to the automotive and
home furnishing sectors. We are soon
planning to incorporate a world-class,
state-of-the-art facility for OEMs to
supply auto components.”
Sharing his success mantra with
new age entrepreneurs, Dasarathi says,
“Look at the growth rate of China.
They have achieved such a fantastic
growth rate mainly because of their
determination, discipline, development
through technology, speed and efficient
operations. There is fierce competition
in the market and so, if we have to
survive for a long time, we need to be
the best in whatever we do.”
AURANGABAD OVER THE YEARS...According to Dasarathi, Aurangabad
was more like a glorified village,
than an urban city, in the early 70s.
“It all started in the 70s, when the
sleeping city emerged on the industrial
map of Maharashtra and a number
of players ventured and set up their
manufacturing plants in Aurangabad.
The city witnessed rapid growth in the
80s, with tourism emerging as a strong
segment. The famous ancient caves of
Ajanta and Ellora were the centre of
attraction then,” says Dasarathi.
It was during this time that
the industrial scenario took off
in a big way. Prominent sectors,
such as pharmaceuticals, breweries,
engineering, automotive, consumer
goods made ventured into the region.
“In the 90s, the place was given
the title of being ‘Asia’s fastest
growing city’. Later, when the
software technology park was
established, IT industry expanded
its base here. It was followed by a
survey report by Karni. This report
placed Aurangabad among the 10
lucrative and potential progressive
destinations in India,” he adds.
A huge number of MNCs in
various sectors have established
their manufacturing plants in
Aurangabad in the last one decade,
resulting in improved skill sets.
WHAT DOES THE FUTURE HOLD? Dasarathi strongly believes that very
soon, Aurangabad will make it to
the top five cities of India. “This will
happen gradually as Aurangabad has
many advantages like good and trained
HR availability, hard working people,
strategic location, excellent blend of
ancient culture with western style,
togetherness of people for a purpose
and most importantly, the city has a
strong desire to grow,” Dasarathi says.
Before signing off, he adds that the
place will see a rise in industrialisation,
tourism and IT in the next five years.
A
When we started the company, our initial turnover was `25,000. However, the efforts of the
team has borne fruit and we have posted a yearly turnover of `400 crore. The company witnessed a growth of 20% last fi scal and aims to achieve a growth of 25% this fi scal.”Umesh Dasarathi, MD, Rucha Group of Companies
Perseverance breeds SUCCESSHe battled all odds to see his dream come alive. Today, the success story of Umesh Dasarathi, MD, Rucha Group of Companies, has become a source of inspiration for society. Here’s presenting his success story…
NISHI RATH
16 INVESTMENTS SEARCH - Supplement June 2012
The Rising Industrial GiantEntrepreneurial spirit, support from established players and the State Government has made Aurangabad an industrial area of repute. With multiple SEZs and constant fl ow of investments in multiple sectors, Aurangabad has found its place on the industrial landscape after Mumbai & Pune. Profi ling some of the major investments in this region in the last fi ve years...
SUMEDHA MAHOREY
AUDIInvestment: €10 million
Project: To scale up capacity at its facility by 50% to 9,000 units
Location: Aurangabad
Description: The company is building a new assembly hall, to be called ‘Hall C’, which would contribute to the production of another 3,000 cars. Speaking about the investment in this expansion project, Michael Perschke, Head, Audi India, said, “Once the initial investment of €30 million is exhausted, the company may revisit investment plans. When we started our business five years ago, the investment was calculated at around €30 million. Of this, we have consumed €20 million till last year. Probably, with the present investment, we will consume the €30 million by end of this year.”
Additional Info: The Aurangabad facility was initially designed with one assembly line to produce A4, A6 and Q5 models with a capacity of 3,000 cars per shift. This has now been doubled to 6,000 cars with two shifts. To achieve the increasing target volumes in the Indian market, the company also plans to expand the dealership network to 25 this year from the existing 18.
PERKINS INDIA
Investment: `780 crore
Project: Plans to set up a greenfield facility to manufacture diesel and gas engines
Location: Shendra Industrial Estate, Aurangabad
Description: Headquartered in Peterborough, UK, Perkins Engines Company Ltd is a wholly-owned subsidiary of Caterpillar Inc. Perkins plans to manufacture its 4000 Series diesel and gas engines, which are used in power generators, currently made only in the UK.
Additional Info: Shendra Industrial Area has been incorporated in the Delhi Mumbai Industrial Corridor project. The Maharashtra Government would soon enter into a memorandum of understanding with the company. The project would be granted mega project status. Initial groundwork may commence by June 2012. Within 12 months, the plant may soon be operational. The plant will have a capacity to produce 3,000 engines per year.
GREAVES COTTON
Investment: `50 crore
Project: Setting up of a new engine manufacturing unit
Location: Aurangabad
Project: The company is planning to diversify into manufacturing of small diesel engines for the fast growing passenger car space & bigger engines for light, medium and heavy duty trucks. The company is also planning to expand its diesel engine manufacturing capacity. The new engine unit set up at a CAPEX of `50 crore in Aurangabad will take the company’s total automotive engine manufacturing capacity to 4 lakh units per annum.
17INVESTMENTSSEARCH - Supplement June 2012
SIEMENS
Investment: `250 million (`25 crore)
Project: Greenfield High Voltage Instrument Transformer Factory
Location: Waluj, Aurangabad
Description: The unit is spread over an area of approximately 4,500 sqm. The manufacturing facility provides direct employment to about 100 people and indirect employment to about 300 people. The facility manufactures a range of Instrument Transformers such as SF6 Insulated Current Transformers, Voltage Transformers and state-of-the-art Oil-filled Capacitor Voltage Transformers up to 765 kV. To maintain a high degree of quality and accuracy while manufacturing, all main activities like core winding, active part assembly, all impregnation, vacuum and oven process, final assembly and testing are done in-house. The factory also has an in-built state-of-the-art testing facility with test equipment imported from Haefely, Switzerland. Another unique feature is that the current and potential transformers are manufactured without any use of paper or oil, thereby reducing the production time by about four weeks.
ENDRESS+HAUSER
Investment: €19 million
Project: Production facilities for level, pressure and flow measurement engineering equipment
Location: Aurangabad
Description: The new premises are divided into three buildings, with a total of 5,000 sqm of floor space for the production of level and pressure measurement instruments as well as logistics and administration. Immediately next door, the company has invested €13 million in the extension of their production facilities for flow measurement engineering.
VARROC GROUP
Investment: `150 crore
Project: New plant to produce front axle beams and crankshafts
Location: Waluj, Aurangabad
Description: From supplying connecting rods that weigh a maximum of 15 kg to supplying crankshafts weighing a quintal, the company is ready to take a big leap through its metallic business division. Trial production at its new plant will start by July. This plant will have an annual production capacity of up to 200,000 crankshafts for six-cylinder engines for commercial vehicles. The `150 crore plant will also produce front axle beams, another new component in Varroc’s portfolio. With the current commercial vehicle expected to grow in tandem with the economy, the plant is expected to hit peak capacity in 3–4 years.
HINDALCO-ALMEX AEROSPACEInvestment: Undisclosed
Location: Shendra, Aurangabad
Project: State-of-the-art plant to manufacture hard aluminium alloy billets and slabs
Description: Billets up to 1,060 mm in diameter are being manufactured at this facility. This is a first-of-its-kind facility in India, which is exclusively devoted to high-performance aluminium alloys. This greenfield facility has come up on 20 acre of land. With state-of-the-art technologies in casting, homogenising, machining and ultrasonic testing, HAAL is a futuristic plant. Emphasis has been laid on the use of clean fuel and efficient technologies.
SEARCHSEARCH - - Supplement June 2012Supplement June 20121818 GRINDMASTER FACILITY VISITGRINDMASTER FACILITY VISIT
mall opportunities are
often the beginning of
great enterprises”—this
line by the famous Greek
Orator Demosthenes
stands true for GrindMaster. What
started 28 years ago by an engineering
graduate couple Mohini and Milind
Kelkar in Aurangabad is now a world-
class player in grinding, finishing and
precision engineering with a proud
client list including the likes of Tata,
Yamaha, Bharat Forge and Bajaj,
among others. “Bajaj Auto setting up
their facility here was an opportunity
for us. We had just completed our
engineering and wanted to start
something of our own. This is how
we set up GrindMaster,” says Mohini
Kelkar, MD, GrindMaster. She explains
that the initial years were not smooth,
but hard work has led them to where
they are today. “During those years,
most metal finishing and deburring
operations were performed manually.
These processes had limitations on
productivity, accuracy and consistency
of both the result and finish. Thus,
we came up with automatic and semi-
automatic machines to overcome the
lacunae,” she elaborates.
THE JOURNEY SO FAR… Their first endeavour was to develop
a buffing machine for polishing pots
and pans. Subsequently, they came up
with automatic machines for grinding
the parting line of forgings followed by
centreless machines for grinding and
polishing. Soon after, they developed
the country’s first indigenously
designed fully automatic motorcycle
rim polishing machine, which till
then had to be imported. Today,
the company has carved a niche for
itself in the global industry of metal
finishing and deburring. It boasts of
developing and building machines
to suit individual needs and now
possesses one of the widest range of
special purpose machines dedicated to
the processes of deburring, grinding,
polishing and micro-finishing. With
a proven track record of successfully
developing new concepts and
cutting-edge technological solutions,
GrindMaster has earned the reputation
of getting it absolutely right the first
time.
CONTINUOUS DEVELOPMENT: KEY TO SUCCESS In the early 90s, GrindMaster set up
It all started in a garage in Aurangabad in 1984, with the making of small super-fi nishing machines. After years of dedication and hard work, the Kelkars have made GrindMaster a pioneer in providing speciality products to companies across the globe. With continuous innovations, the company has created its own benchmark for excellence. A recent visit to their facility in MIDC, Aurangabad, speaks volumes of the hard work put in to ensure that Aurangabad fi nds a prime spot for itself on the global map…
“S NISHI RATH
Stepping Towards
Stepping Towards
Exponential Success
Exponential Success
19GRINDMASTER FACILITY VISITSEARCH - Supplement June 2012
its new manufacturing unit at MIDC,
Aurangabad, and consolidated its
expanding range of machines in terms
of components and build-quality. This
proved crucial in the successful export
of machines, starting with South East
Asia and subsequently, expanding to
countries all over the world. In the
late 90s, in order to explore other
opportunities to provide customers
with complete solutions, GrindMaster
ventured into the business of
consumables. “We consequently forged
a technical collaboration with VSM,
Germany, for a complete range of
coated abrasives sold throughout India.
A conversion plant set up in 2000 has
been successfully manufacturing coated
abrasive belts and rolls since then,”
says Mohini.
In 2002–03, GrindMaster started
developing micro-finishing technology
for the processing of automotive parts
and hard chrome plated rolls. Later,
upon signing a licensee agreement with
IMPCO, USA, for GBQ Technology
for micro-finishing of crankshafts and
camshafts, GrindMaster joined the
small elite group of world companies,
which has the capacity and expertise
to manufacture niche sophisticated
metal finishing machines. “From 2004
onwards, we geared up for future
expansions and started with investing
in infrastructure and machinery.
The systems were smoothened out
with the implementation of Axapta
– ERP Software,” adds Milind. The
company’s current R&D challenges
include Robotic Deburring and
Finishing Systems.
A LOOK AT THE SHOP FLOOR… ‘Customised solutions’ is the name of
the game! What makes GrindMaster
the preferred product and service
partner is its tailor-made solutions that
they provide to each of their customers.
A visit to their well organised shop
floor and interaction with the
enthusiastic and dedicated team stands
testimony to the fact that listening and
catering to your customers’ needs pays
handsomely.
From a humble beginning to one of
the best in the field, GrindMaster
has come a long way. After catering to major domestic
players, the company has now truly gone global by opening
its first office in China. There, they compete with major
German companies on the basis of superior technology.
“We are in a key position to cater to the whole world in our
niche,” says Milind Kelkar, CEO, GrindMaster.
STEADY GROWTH IN AURANGABADWith companies like Bajaj Auto and Skoda making their
presence felt here, the automotive sector has seen a boom
over the years. Its proximity to Pune, which is already
home to various automotive companies, has also helped
Aurangabad grow. In home appliances, major players,
like Videocon and Nirlep, have their base here and have
immensely contributed to the growth of this region. Also,
there are pharmaceutical companies, which can be given
due credit for the city’s development. Overall, this place
has good potential. Also, IT has started witnessing growth
here. But I believe that it does not contribute to the
growth of a region apart from generating a large number
of mundane, but well paying jobs. Besides, major industries
have set up their base here, while many others are eager to
invest in this fast growing city. Aurangabad is set to see
another leap in the next few years.
MANPOWER ISSUES Unlike the situation 20 years ago, Aurangabad has around
eight engineering colleges. While the situation has definitely
bettered over the years, the quality of education still needs
dramatic improvement. Also, companies setting up shops
here need to develop a work culture within their organisation.
NEED FOR BETTER CONNECTIVITY Every developing region needs to have basic infrastructure
in place. Although we do not lack any of it, we wish
Aurangabad was better connected to the southern part of
the country by air.
MILESTONES ACHIEVED... MILES TO GO We started with only two people onboard, and now, we have
a dedicated team of 200. We have aspired and achieved what
many people had dreamt about in those days in a region like
Aurangabad. We wanted to do something different, and so
we started GrindMaster. Now, we have a dream to provide
the best to our employees and bring out the best of their
capabilities. The beginning is always difficult, but so is
achieving the No. 1 position. However, the most difficult
is maintaining it. Aurangabad is looking forward to a new
era of growth and there is much more to come. But I wish
to see Aurangabad creating its unique identity rather than
competing & being at par with Pune.
‘I wish to see Aurangabad creating its unique identity rather than competing & being at par with Pune’“Major industries have set up their base here, while many others are eager to invest in this fast growing city. Aurangabad is set to see another leap in the next few years,” says Milind Kelkar, CEO, GrindMaster, during an interaction with Nishi Rath. Excerpts…
20 GRINDMASTER FACILITY VISIT SEARCH - Supplement June 2012
The manufacturing activities
of GrindMaster can be divided
into fabrication, machine shop and
assembly. The fabrication shop is
trained for manufacturing high-quality
and precision machine bases. The
machine shop is equipped with CNC/
VMC machines and grinding machines.
All critical parts of the machines
GrindMaster produces are made in
its in-house machine shop. These
parts are then inspected for accuracy
with high-class testing equipment like
CMM. The machine assembly section
is divided into standard machines and
special purpose machines for deburring,
belt grinding and polishing. Micro-
finishing machines are assembled in a
separate section.
IMPROVING THE VALUE CHAINFor GrindMaster, a great team leads
to a great future. To ensure the
team’s safety, the company has various
initiatives in place. “We have safety
training in place that is held almost
every month. Apart from that, we
have safety audits, wherein we keep a
regular check on the cranes and other
machines/equipment while keeping
in mind the safety of employees,”
says Milind. The management is also
working towards creating a paperless
office and is taking all the steps to
achieve the target soon. Besides, the
Kelkars also believe in continuous
upgradation of every employee.
For operating level employees,
drivers & clerks, English classes are
held to improve their language and
communication skills; whereas for fresh
engineers, an elaborate engineering
programme is conducted. Similar
technical upgradation programmes on
hydraulics, PLC programming, lube
systems, etc., are also regularly held for
all concerned employees. Definitely,
the Kelkars are on the right track to
take GrindMaster to the next level.
FUTURE PROSPECTSAccording to Milind, when they
started, nothing was easily available.
Even for procuring a small thing
like an electric motor, the couple
had to head to Mumbai. “But now,
times have changed. Aurangabad has
everything right from suppliers of
machine components to sophisticated
programming skills and software,” he
says. Mohini agrees, “Till 2000, the
growth was somewhat sluggish, but
after that, it has grown by leaps and
bounds. Now, Aurangabad is the place
where companies are looking for more
sales and business.”
After having hit the right chord
in the Indian machine tools industry,
GrindMaster has all its future plans in
place to make it bigger. In the recent
years, after extending the IMPCO
licensee to China, GrindMaster began
manufacturing crankshaft micro-
finishing machines for China. Auto
major, General Motors, Shanghai,
features among their list of customers
for whom a state-of-the-art high
volume crankshaft micro-finisher
was delivered and commissioned
successfully. Presently, the company
has set up a permanent office in
China to provide sales and service
support. “GrindMaster is probably the
only machine tools company that is
supplying machines in such a big way
in China. There, we are competing
with German manufacturers. It is not
the pricing that has led us there, but
our technology, which we provide in
collaboration with our partners in the
US for micro-finishing of crankshafts
and camshafts,” says Milind, adding,
“These are important engine parts and
require high technology.”
GrindMaster has been consistently
growing year-on-year by 15–20%,
but with this addition in China, the
growth has been almost 1.5 or 2 times
since the past two years. “Innovation is
the key. Every day, there is something
new innovated at every level. Various
deburring techniques are being
developed; our latest addition in the
category would be robotic deburring.
We have also developed some robotic
applications in the past one-and-a-half
years. Robotic deburring, fettling and
robotic handling of our machines is
now done by our new division headed
by our son, Sameer, who has joined
us,” says Milind.
With Aurangabad growing as
an industrial hub, companies like
GrindMaster play a strategic role
in the area’s growth. With strong
technical and innovation skills, the
company has already started looking
ahead and has charted out its growth
strategies. GrindMaster, as the Kelkars
say, is now stepping ahead to witness
another era of exponential success.
GrindMaster has both semi-automatic and manual machines
22 OPINIONS & MORE SEARCH - Supplement June 2012
URANGABAD BEYOND TOURISM...Since the 1960s,
Aurangabad has
witnessed immense
growth. While major companies
continue to invest in the region, the
existing ones are looking at expansion
to cater to the huge industrial demand.
Major credit goes to Bajaj Auto and
Videocon. These companies laid the
groundwork for the Aurangabad that
the world knows today.
Earlier, it was just Ajanta and Ellora
caves and the rich history that attracted
attention from different quarters. But
the presence of Baja Auto ensured
that major auto giants such as Skoda
were lured into the region. The growth
of the automobile industry gave rise
to the demand for auto component
suppliers. Today, Aurangabad boasts
of being a major automobile hub of
India, with a dedicated SME cluster
dealing in auto components.
OPPORTUNITIES GALORE FOR COMPONENT SUPPLIERSTill the early eighties, various
industries such as consumer durables,
automobiles and pharmaceuticals,
among others, based in Aurangabad,
had to source their raw materials
requirements from distant markets
like Pune and Mumbai. So, there was
an urgent for SMEs to set up base
in the city. Making the most of the
opportunity, various small units came
into existence. It not only helped
the industries, but also encouraged
first generation entrepreneurs in
Aurangabad. This was also the time
when the Aurangabad Industrial
Suppliers Association (AISA) was
formed.
As of now, we have more than
200 members dealing in various
commodities from stationery and
hardware, to paints and electronic
goods and have been rendering service
to the industry in the region.
TECHNOLOGY PLAYING A CRITICAL ROLEThe success of manufacturing
industries has increasingly become
dependent on innovations, research
and development. Innovation is
important not only to be competitive,
but also to develop and adopt new
technologies.
As industrialisation has taken the
centre stage in Aurangabad, it has
given way to technological adoption
in the manufacturing facilities.
Today, one can find almost all the
latest technologies being used in the
industries, based in Aurangabad.
Automation and robotics, too, have
come a long way. In the current
scenario, the Aurangabad-based
business houses present a full spectrum
of technological capabilities. In fact,
there are homegrown companies like
GrindMaster, Videocon and Bajaj,
which have taken Aurangabad to the
world map in terms of product design
capability and process technology.
MILESTONES ACHIEVED... MILES TO GO With the government giving a green
signal to the Shendra-Bidkin Industrial
Park, Aurangabad is expected to
witness substantial growth in the next
couple of years. The opening of the
industrial park will definitely attract
more companies to Aurangabad,
which, in turn, will see growth in areas
like real estate, information technology
and the packaging industry.
This city has a fighting spirit
and has overcome challenges like
limited infrastructure and inadequate
skilled manpower to become one
of the most attractive places for
foreign and homegrown companies to
invest in. Despite achieving all this,
the city’s apetite for growth is still not
satiated.
A
Aurangabad has a Fighting Spirit
Parvesh Batra
President of Aurangabad Industrial
Suppliers Association (AISA)
“The city has overcome challenges like limited infrastructure and inadequate skilled manpower to become one of the most attractive places for foreign
and homegrown companies to invest in. Despite achieving all this, the city’s apetite for growth is still not satiated,” avers Parvesh Batra, the newly elected
President of Aurangabad Industrial Suppliers Association (AISA), during a conversation with Nishi Rath. Excerpts…
23OPINIONS & MORESEARCH - Supplement June 2012
URANGABAD, OVER THE YEARS… Industrialisation made its
foray into Aurangabad
during 1960s when
companies like Nirlep, among others, set
up base at the railway station industrial
estate. Gradually, the industrial culture
started to gain momentum in the
city and in the 1970s, Chikalthana
industrial estate became functional. But
this was just the beginning; within a
few years, Aurangabad was on its way
to make it big. Aurangabad witnessed
major growth around the 1980s when
Bajaj and Videocon entered the scene.
The presence of Bajaj, one of the
leading two-wheeler manufacturers,
laid the base for the automobile sector,
which saw a rise during the late 90s
and early 2000. Alongside, tier III and
mid-sized tier I companies also started
to make their presence felt. Around
this time, auto major Skoda also set up
base in Aurangabad. This marked the
beginning of the growth of Shendra
industrial estate.
TECHNOLOGY ADVANCEMENTSToday, Aurangabad is one of the fastest
growing cities in the country. The city
has now achieved the stage of matured
industrialisation with the growth of
the existing companies. The industries
here have come a long way, both in
terms of growth and technology. In
fact, many of them have already started
implementing systems like ISO, TS,
TPM and lean manufacturing in order
to meet international standards.
GROWTH OF SMEs Companies like Bajaj and Videocon
started sourcing components from
SMEs in and around Aurangabad
during the 90s. The growth continued
with major players, such as Varroc,
Endurance, Man Diesel, Can-Pack
India and Siemens, venturing into
Aurangabad. SMEs have a great
future ahead. This is an era of cost
competitiveness. Hence, to control
overheads and to reduce cost; there is
a need for SMEs. Besides, SMEs add
flexibility to OEMs’ business model.
ROLE OF CMIACMIA has been active ever since
the first industrial estate came into
existence. While informal activities
started around 1966, CMIA (then
Aurangabad District Industries
Association, ADIA) came into
existence around 1969. Since then, we
have come a long way. CMIA has also
made major contributions to provide
basic requirements. For instance, our
members were active in establishing
schools and hospitals in the region.
Going forward, the investment in
design and development facilities for the
auto & engineering industry through
the Marathwada auto cluster project
worth `81 crore through PPP will also
be one of the major contributions for
the region from our end.
ISSUES FACED IN THE REGIONThe non-availability of land is a
major issue at present and should
be addressed at the earliest. Besides,
Shendra-II region should also be
given priority and the nearby Guyran
region could also be converted into an
industrial zone. Another major issue
here is infrastructure.
MESSAGE TO NEW AGE ENTREPRENEURSWe have good opportunities in the
global market. However, we should
now focus on quality, delivery and
reliability. For this, we need to take
specific efforts in terms of changing
the operating culture of our industrial
establishments.
A“The industries here have come a long way, both in the terms of growth and technology. Local industries have started implementing systems like ISO,
TS, TPM and lean manufacturing in order to meet international standards,” says Mukund Kulkarni, President, Chamber of Marathwada Industries and
Agriculture (CMIA), during an interaction with Nishi Rath. Excerpts….
Matured industrialisation has taken Aurangabad to NEW HEIGHTS
Mukund Kulkarni,
President, Chamber of Marathwada
Industries and Agriculture (CMIA)
24 OPINIONS & MORE SEARCH - Supplement June 2012
URANGABAD ON A GROWTH SPREEActual industrialisation
in Aurangabad started
in the 80s with Bajaj
Auto Ltd setting up its facility here.
Undoubtedly, there were industrial
units in the region prior to this.
However, with a major automobile
giant like Bajaj venturing into
Aurangabad, the entire scenario
changed—ever since, Aurangabad
has been considered as one of the
fastest growing cities in India. Today,
all the top companies are present in
the region. Moreover, Aurangabad
has become one of the preferred
destinations for those planning to
invest in Maharashtra. This, in turn,
has created business opportunities for
SMEs in the region. Additionally, the
industrial culture has offered a boost to
the overall growth of the region. With
rapid industrialisation, the demand
for other amenities has increased.
As a result, the number of good
schools, theaters, malls and shopping
complexes, among others, came up.
The region has witnessed tremendous
growth in the past few years and we
anticipate this growth to enhance
further in time to come.
INFRASTRUCTURE: A MAJOR ISSUE As is the case with every developing
region, Aurangabad too has some issues,
such as infrastructure and connectivity,
which still need attention. Till 1990,
the infrastructure was in a bad shape in
the region. While there has been some
improvement in telecommunication
and road & rail connectivity, among
others, thereafter; the infrastructure in
the region is still laden with limitations.
There is still a lot that needs to be
done with respect to infrastructure and
connectivity—majorly pertaining to air
and rail modes—as connectivity plays
a crucial role in a region’s growth and
development. Once Aurangabad has
all these in place, there would be no
looking back.
AURANGABAD, FIVE YEARS DOWN THE LINE… Once popular as a tourist destination,
Aurangabad has now emerged as one
of the finest machining hubs in the
country. The region, which is open to
new methods and use of automation &
robotics in existing setups, is growing.
It will certainly come up in a big way
in future. I am optimistic that five
years down the line, areas like Shendra
and Bidkin, among others, will be fully
developed.
Besides, the region’s growing
opportunities have encouraged many
first-generation entrepreneurs to enter
the market. This, in turn, has given
rise to healthy competition, as young
minds bring in new perspectives,
business ideas and global market
trends & technologies, among others.
All these factors will help Aurangabad
reach a different level altogether.
MESSAGE TO NEW AGE ENTREPRENEURS...Budding entrepreneurs know
exactly what they want. However, I
would like to advice them to remain
focussed and not look for shortcuts,
follow ethical trade practices and go
for solution selling.
FUTURE GROWTH PROSPECTS As far as our future plans are concerned,
we are planning to shift from product
selling to solution selling besides
diversifying into manufacturing. Since
the past three years, we have been
growing at the rate of about 45% and,
this year, irrespective of all odds, we
hope to maintain the growth rate to
about 40% or more.
A
Aurangabad has now emerged as one of the finest machining hubs
Jayant Soni
MD, Akshay Industrial
Enterprises Pvt Ltd
“The region will certainly come up in a big way in future. I am optimistic that fi ve years down the line, areas like Shendra and Bidkin, among others, will be fully developed,” informs Jayant Soni, MD, Akshay Industrial Enterprises Pvt
Ltd, during an interaction with Nishi Rath. Excerpts…
25OPINIONS & MORESEARCH - Supplement June 2012
REATING CUSTOMER BASE IN INDIAWe started operating
in India in 2001. Since
then, we have added
several product lines to our basket. The
journey has been full of ups and downs,
but we have successfully sustained
our rapid growth, which has led to a
formidable base of satisfied customers
in India and in select overseas markets.
At Osborn, we are committed
to bring internationally advanced
technologies in surface finishing to
Indian customers. To this end, we
are in a process to grow our turnover
multifold over the next few years. We
will be creating additional employment
opportunities and will be introducing
new products into Indian market.
However, for all these activities to
happen, there is a need to invest more
in terms of facilities and manpower.
The management is planning to
significantly expand the manufacturing
facilities in Aurangabad, which will be
functional soon.
GROWTH OPPORTUNITIESThe Indian market with a population of
1.22 billion offers ample opportunities
for growth. And business in India,
specifically in Aurangabad, has
undergone tremendous change, over
the past few years. We have witnessed
10 years of collaboration and success
as a part of Jason Incorporated. And
now, we are aiming to grow five times
our current size over the course of the
next five years. We have doubled our
turnover every two years and hope to
maintain the same pace in the next few
years as well.
PROBLEMS FACED IN INITIAL YEARS During the initial years, one of the
main problems we faced was the
non-availability of trained manpower
at various levels. Apart from that,
the non-availability of affordable
housing for employees in proximity to
industrial areas and conveyance from
& to industrial areas often posed as
roadblocks. Although the situation has
changed for the better, there is still a
lot of scope for improvement.
THE CHANGING FACEFrom a sleepy town in the 70s,
Aurangabad has marched towards
becoming the growing industrial
and educational hub of central
Maharashtra. The sleeping city
has woken up to some amazing
industrialised growth, with various
multinational companies setting up
base here and contributing to the rapid
development of Aurangabad. The city
has grown tremendously over the years.
The industrialisation here is matched
with rapid growth in the educational
sector as well. Many institutions for
basic as well as professional training
have come up in last few decades.
This development has somewhat eased
the problem of skilled manpower in
the region. From the way things are
progressing, Aurangabad will continue
its journey towards rapid growth.
UNSTOPPABLE AURANGABADIt could be said that the city is on the
right track and will continue its journey
towards rapid growth in future as well.
The sprit of entrepreneurship present
here is indomitable. This would
ensure rapid growth of this city despite
the constraints. Industrialisation
would get a further boost due to the
upcoming Delhi Mumbai Industrial
Corridor (DMIC) project, which
would be implemented with the
cooperation of Japan. Not only this,
as mentioned earlier, this city would
also grow as an educational hub in the
years to come.
C“The sleeping city has woken up to some amazing industrialised growth, with various multinational companies setting up their base here and contributing
to the rapid development of Aurangabad,” says Shirish Tambe, General Manager, Osborn Lippert India Pvt Ltd during an interaction with Nishi Rath.
Excerpts…
Aurangabad will continue its journey towards Rapid Growth
Shirish Tambe,
GM, Osborn Lippert India Pvt Ltd
26 OPINIONS & MORE SEARCH - Supplement June 2012
HE HUMBLE BEGINNING B i r l a P r e c i s i o n
Technologies is a
subsidiary of Yash
Birla Group, which is
a `30 billion conglomerate of over
20 diversified companies that run
the gamut from established sectors
like auto & engineering, textiles &
chemicals and power & electrical to
emerging sectors, such as wellness &
lifestyle, education & IT.
Birla Precision Technologies was
established in 1986 as Birla Kennametal
Ltd, in a joint venture with US-based
Kennametal Inc. However, in July
2007, Yash Birla Group acquired the
stake of Kennametal in the JV, and
Birla Kennametal was renamed as Birla
Precision Technologies Ltd (BPTL).
OVERCOMING HARDSHIPS FACEDThe initial years were tough and we
faced a lot of issues while establishing
the company in Aurangabad.
Connectivity was a major issue and
employees had to walk from distant
places to office. Issues such as lack
of infrastructure, non-availability
of skilled manpower and banking
facilities posed as major roadblocks.
However, in the last 10 years, the
city has witnessed more structured
development.
AIMING HIGH We are aiming towards achieving
a balanced growth and not just
standalone growth in one or two
segments. During the current year,
we plan to majorly invest in casting
machining and precision components
machining. As of now, our maximum
business comes from overseas and
so, we plan to enhance our domestic
market share. Since we are a
reputed name as far as quality is
concerned, there is a wide scope for
expansion in the domestic market.
This year, we are targeting 20% growth
over last year.
In a strategic move, one of the
oldest companies of the group, Indian
Tool Manufacturers (ITM) has been
merged with BPTL to further create
synergy among the group companies.
This year, ITM’s Cutting Tool
Division is celebrating its platinum
jubilee. A pioneer in manufacturing
high speed steel cutting tools in
India with an extensive distribution
network, ITM is synonymous
with high quality, high speed steel
tools including straight shank twist
drills, taper shank twist drills,
centre drills, masonry drills, milling
cutters, reamers and tool bits. Going
forward, we will also be venturing
more aggressively into carbide tool
manufacturing.
POISED FOR A BRIGHT FUTUREInitially, Aurangabad was known only
for its historical background, but over
time, the place has strongly emerged
as a major industrial hub. It has now
gained recognition as one of the most
attractive investment destinations
for domestic as well as international
companies. And it has ample potential
to grow further.
The place’s proximity to cities like
Mumbai, Pune and Nashik makes
it a strong contender for becoming
India’s leading investment destination.
The city has been home to various
major players till date and will surely
attract many more in years to come.
However for that to happen, the State
Government must come up with
aggressive policies to promote the city
as a serious industrial destination.
T
Aurangabad has ample potential to grow further
B Ravindra Naidu
Joint President, Birla Precision
Technologies Ltd
“Proximity to cities like Mumbai, Pune and Nashik provide Aurangabad with a very good potential for growth. The city has been home to various major indus-
trial players till date and will attract many more in years to come,” says B Ravindra Naidu, Joint President, Birla Precision Technologies Ltd, during a
tête-à-tête with Nishi Rath. Excerpts…
27OPINIONS & MORESEARCH - Supplement June 2012
WAJIT ABRASIVES: A FORCE TO RECKON WITHSwajit Abrasives Pvt Ltd
was established in 2002
and owns popular brands
such as ABRACUT & TIGER of
coated abrasives in both resin (R/R)
& glue (RGR) bond. Since the
beginning, we have progressed rapidly
and currently boast of a state-of-the-
art coating plant for electro coating of
grains & ultramodern cloth processing
plant. During this journey, we have
successfully achieved the capacity to
manufacture 8 lakh sqmt of coated
abrasive cloth per annum. In order to
serve our clients better, we have started
offering customised services as well.
For that, a system, which can modify
our products so as to meet individual
requirements, has been put in place.
The innovative brains and an
aggressive marketing team has been
our core strength, which has led to
immense success while satisfying the
customers by means of producing
a quality product, and on-time
delivery at a competitive price. The
quality-driven environment, along with
able administration and appropriate
human resources development has
enabled Swajit to get an ISO 9002
certification for its conveyor chains
manufacturing facility.
Today, the company is well-placed
in domestic as well as overseas market
as far as manufacturing and supplying
of all critical application conveyor
chains, coated abrasives specialty
products and heat treatment facility
are concerned.
We, at Swajit, are committed to
our long-term mission of providing
quality and on-time delivery with total
customer satisfaction. Our client list
boasts of some prominent industrial
players such as Tata Motors Ltd,
Bharat Forge Co Ltd, Cummins Ltd,
Kirloskar Oil Engines Ltd, Mahindra
& Mahindra Ltd, Titan Watches Ltd
and Aurangabad Electricals Pvt Ltd,
among others.
THE INITIAL ROADBLOCKSInitially, we faced real tough times
in establishing the products and the
brand as well. The infrastructure (or
the lack of it) in Aurangabad did not
help either. However, we have come
a long way since then and are in the
process of expanding the business with
some huge investment in place. Going
forward, we will commission one
more production line as the company
is aiming at enhancing the overall
production capacity by about 150%.
Swajit has witnessed steady &
gradual growth in the past and
expects the same in future as well.
Talking about demand dynamics and
competition, it would be apt to say
that the demand will depend on the
industry trend. However, it is poised
to go up as the competition increases
with new players entering the market
and technological innovations playing
a key role.
AURANGABAD: POISED FOR A BIG LEAPIn the past one decade, the city
has witnessed some phenomenal
growth, which was beyond anybody’s
expectations. Looking at where
things currently stand, it could well
be asserted that the sky looks bright
for Aurangabad. As the companies
are looking to expand and there
is an increased focus on localising
products, investments in the region
will see a positive rise and employment
opportunities will also be immense.
This has also encouraged new age
entrepreneurs, who just have to keep
a few things in mind before starting
on their own firms. They should aim
at following fair and ethical business
firms and also focus on advanced
technology and diversified business.
S“Since there is an increased focus on localising products, investments in
the region will see a positive rise and employment opportunities will also be immense,” says Avinash Vishwasrao Chavan, Founder, Swajit Abrasives Pvt
Ltd during an interaction with Nishi Rath. Excerpts…
Looking at where things stand currently, the sky looks bright for Aurangabad
Avinash Vishwasrao Chavan,
Founder, Swajit Abrasives Pvt Ltd
28 OPINIONS & MORE SEARCH - Supplement June 2012
AKING FORAY INTO INDIAIt was in 1991 when
Lombardini entered
India, riding on a tri-party
agreement with Piaggio
and Greaves. The agreement required
Lombardini to provide technical
know-how & support to these
companies. However, in 1998, the
company set up its light engines
manufacturing facility at Chikalthana
MIDC in Aurangabad. The
Lombardini Group was acquired by
Kohler Co, USA, in 2007. Since then,
its presence in Aurangabad has also
become a Kohler entity, producing
both light engines and generator sets
for Kohler Engines and Kohler Power
Systems.
SOME AREAS NEED IMPROVEMENTWay back in 1962, the brotherly duo
of Nanasaheb and Shrikant Bhogale
initiated a modern industrial culture
in Aurangabad with the launch of
Umasons, a medical equipment
manufacturing unit in Aurangpura.
Since then, the Marathwada region
has seen exponential growth and
today accounts for 3,000 industries,
including MSMEs, domestic as well as
multinational players. I feel good when
I come across budding entrepreneurs,
who want to grab opportunities with
both hands. For them, I would like
to quote Swami Vivekanand, “Arise,
awake and stop not till the goal is
reached.”
Aurangabad is one of the centrally
located cities with good connectivity
though there is still some scope for
improvement. For example, the
condition of roads, power for the
industries and rail network are some
of the problem areas. Another major
issue is the air connectivity. There is
an urgent need to increase the number
of flights connecting Aurangabad, not
only to Mumbai and Delhi, but also
to other locations as well.
GROWTH ON THE CARDSDuring a recent press conference,
Maharashtra Chief Minister Prithviraj
Chavan announced that 43 mega
projects would come up in Maharashtra.
Of the total, 13 would be major
projects with a collective investment
of over `10,000 crore that would be
located in Marathwada region. These
mega projects are expected to generate
around 26,000 jobs in the state.
Here, I would also like to add that
the socio-economic environment is an
important factor, which needs to be
studied before initiating a new project.
For example, we did a fantastic
study before starting the journey in
Aurangabad and therefore, have not
faced any trouble whatsoever.
I would like to add that this city
has a great future. It is strategically
located and movement in any direction
would be equidistant. With such a
strong geographic location, I am sure
that Aurangabad will soon emerge as
the most promising city for industrial
development in the Delhi-Mumbai
Industrial Corridor. It would not only
earn laurels/revenue for the country,
but also for the people living in and
around Aurangabad.
FUTURE PLANSWe, indeed, have an ambitious plan for
the future since we, as an organisation,
are here to stay and grow by leaps and
bounds. Currently, we manufacture
only a handful of engine and generator
set variants. Going forward, the plan
is to localise the products as per the
domestic requirements. Plus, we
would develop more such products,
which would be beneficial for both the
Indian as well as the global markets.
Talks are already on and once we get
a go-ahead from our headquarter in
the US, announcement will be made
regarding the investments and various
other aspects.
M“It would not only earn laurels/revenue for the country, but also for the
people living in and around Aurangabad,” says Sudipto Mukherjee GM –Marketing, Lombardini-Kohler, in a tête-à-tête with Nishi Rath. Excerpts…
Aurangabad will truly emerge once the Delhi-Mumbai Industrial Corridor is ready
Sudipto Mukherjee,
GM – Marketing, Lombardini-Kohler
30 PRODUCT UPDATE SEARCH - Supplement June 2012
This section gives information about products, equipment and services available in the market. If you know what you want. . .refer to Product Index on Page 34 to find it quickly
� PLASTIC REEL CORE PLUGS
These core plugs are manufactured using
high-grade raw materials for providing
quality products to customers. Th e plastic
reel core plugs are widely used in paper mills for
lowering their production costs. Th ese are also used
in the casting process to form internal cavities in
the engine block or cylinder head. Th e range of
plastic reel core plugs is known for its easy
installation and replacement features.
Techno Plast Products
Hyderabad - Andhra Pradesh
Tel: 040-23090021
Mob: 09849657536
Email: [email protected]
Website: www.technoplastcomponents.tradeindia.com
� LASER MARKING SYSTEMS
These machines can
automatically load/unload
materials, mark on the fl y
and dummy beam. Th e auto focus
arrangement takes materials
precisely to the focus of the beam
and ensures same quality for each
marking. Th ese laser marking
machines use 100 W of power to
mark, cut and engrave nearly all the metals.
Suresh Indu Laser Pvt Ltd
Pune - Maharashtra
Tel: 020-56214374
Email: [email protected], Website: www.silasers.com
� ELECTRONIC SAFETY SENSORS
The RSS-36 electronic safety sensors
are equipped with the RFID
technology, with diff erent variants,
each with diff erent coding possibilities. Th ese
sensors also feature all well-known advantages
of the CSS technology. A second version only
accepts the target, which was taught during
the fi rst start-up. In the third version, the teach-in process can be
repeated any number of times.
Schmersal India Pvt Ltd
Pune - Maharashtra
Tel: 020-26741000, Mob: 09595457878
Email: [email protected], Website: www.schmersal.in
� LINEAR POTENTIOMETER
The Unilin–WT22 is push rod
type linear potentiometer
having both side rod end
bearing and one meter Tefl on lead wires with silicon rubber sleeve
for reliable and fl exible connection. It is available in diff erent stroke
lengths from 50 mm to 300 mm. Th is model is specially developed
for the injection molding machine application. However it is also
suited for general precision applications. Th e sensors use a long-life
(>2 million cycles) with conductive plastic resistance element having
linearity up to ±0.1 per cent and very low noise in output.
Uni-Automation (India) Pvt Ltd
Pune - Maharashtra
Tel: 020-24420890, Mob: 09225573521
Email: [email protected], Website: www.uniautomation.com
� LIGHT INTENSITY MEASURING INSTRUMENT
The sensor of the light intensity measuring
instrument (testo 540) is adapted to the spectral
sensitivity of the eye. Th is is ideal for the
measurement of light intensity. Th e hold function allows
an easy readout of the measurement values. Maximum
and minimum values are displayed at the press of a
button. Th is is very handy, small and easy to operate.
Some of the specifi cations are hold function and maximum/
minimum values, including calibration protocol, protective cap for
safe storage, including wrist strap and belt holder, sensor adapted to
spectral sensitivity of the eye, and backlit display.
Testo India Pvt Ltd
Pune - Maharashtra
Tel: 020-65600203, Mob: 09375346186
Email: [email protected], Website: www.testo-india.com
� ROCK BOLTS
Roofex energy-absorbing rock bolts are
unique, highly advanced bolts that can
absorb rock movements with excellent
predictability. Th ese rock bolts are designed to
dissipate and control large amounts of energy
liberated from the rock mass deformation
process. Th e rock bolts are designed to accommodate the whole
spectrum of rock mass behavior as a solution for potentially extreme
conditions occurring at depth.
Atlas Copco (India) Ltd
Pune - Maharashtra
Tel: 020-30722222
Email: [email protected], Website: www.atlascopco.com
31PRODUCT UPDATESEARCH - Supplement June 2012
� RFID TECHNOLOGY
Auto-ID procedures for
the automatic
identifi cation of
components, workpiece carriers
or tools have been used in
manufacturing for a long time.
One of the main advantages of
RFID as opposed to the optical
Auto-ID procedures is that users can read the authenticity features
and also rewrite them to a data carrier.
Turck India Automation Pvt Ltd
Pune - Maharashtra
Tel: 020-25630039
Email: [email protected]
Website: www.turck.co.in
� TIME SWITCH
This time switch Astro® Mini is enabled
with attributes such as trigger on
sunrise/set and twilight rise/set, off set,
off hours and weekly off features with 6 years
battery reserve for high reliability. Simple reset,
easy manual override, DST feature and ease of
programming with 12/24 hour formats is versatile for lighting
automation applications like lighting of streets, gardens, townships,
building apartments, advertising displays and glow signs.
General Industrial Controls Private Limited
Bhosari - Pune
Tel: 020- 30680003
Email: [email protected], Website: www.gicindia.com
� TESTING SYSTEM
This testing system ZWL
9200 adopts the
advanced fast spectrum
analysis system and has powerful
in-built power supply with
external power supply. It can
accurately test the optical colour
and electric parameter for LED
luminaries, modules and lamps in short time. Th is is applicable for
various kinds of lamps, diff erent fi xtures and is made compatible
for LED testing also. Th is provides highly effi cient, user friendly
interface and manual operation module. Th e high precision testing
is done for optical parameters and other relevant parameters.
Agate & Agate Marketing Resources ( I ) Pvt. Ltd
Kothrud - Pune
Tel: 020 - 25469864
Email: [email protected], Website: www.smt-india.com
32 PRODUCT UPDATE SEARCH - Supplement June 2012
� MOBILE STORAGE SYSTEMS
These compactors are assisted
mobile systems, which give
users movement for the easiest
access to stored materials of any other mechanical system made. Th e
remarkable ease of movement is due to their rugged and durable
performance engineering. Comfort and ease of use are enhanced by
ergonomically designed, soft-touch, three spoke rotating handles.
Su-Mech Storage Systems Pvt Ltd
Pune - Maharashtra
Tel: 020-67263800
Email: [email protected], Website: www.su-mech.com
� LOW-EMISSION TAPES
The LE-series (low emission),
high-performance adhesive
tapes meet the requirements
for low emission values. Th ese tapes
fulfi ll VDA 275, VDA 200, DIN
75201A ISO 6452, DIN 75201B ISO 6452, solvent-free pure acrylic
adhesive, free from resins & plasticisers, etc. Th e tapes are available
with a variety of diff erent carrier systems.
Lohmann Adhesive Tapes India Pvt Ltd
Pune - Maharashtra
Tel: 020-30220899, Mob: 09962547906
Email: [email protected], Website: www.lohmann-tapes.com
The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of
SEARCH
� BATTERY MAGNETS
These consist of electromagnet, battery
and control units with integrated
charging set. Th e outstanding design
characteristics make them highly versatile.
Benefi ts include: compact design, with IP53 enclosure, also suitable
for outdoor operation, loads are always picked up safely, etc. Th e
battery magnets are ideal solutions wherever one has to transport
magnetisable loads safely & effi ciently.
Demag Cranes & Components (I) Pvt Ltd
Pune - Maharashtra
Tel: 0213-614200
Email: [email protected], Website: www.demagcranes.co.in
� CONFIGURABLE SAFETY RELAYS
These confi gurable safety relays
(PNOZmulti Mini) are also
available in modular and
expandable versions. Confi gurable control
systems bridge the gap between classic
safety relays and programmable control
systems. Th e confi gurable control system
PNOZmulti off ers at least 40 per cent
potential savings in all engineering phases. Inputs and outputs can
be freely confi gured.
Pilz India Pvt Ltd
Pune, Maharashtra
Tel: 020-24213994, Mob: 09823181112
Email: [email protected], Website: www.pilz.in
� LASER CUTTING SYSTEMS
These TLM series 5-axis laser
cutting systems simplify the
processing of 3-dimensional
workpieces to perform any number of
cutting tasks. Run programs from G code
or an NTC-developed simplifi ed coding process. A simple-to-use
teach-mode makes cutting path generation easy and takes the
guesswork out of virtually all 3-dimensional cutting applications.
Laser Technologies Pvt Ltd
Pune, Maharashtra
Tel: 020-65208337, Mob: 08080593077
Email: [email protected], Website: www.lasertechnik.co.in
34 PRODUCT & ADVERTISERS’ INDEX SEARCH - Supplement June 2012
Our consistent advertisers
Pg No Advertiser Tel. No. E-Mail Website
FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover
Abrasive rolls .......................................................................... 9
Air vent valves ...................................................................BIC
Automation systems ................................................................ 7
Balancing machine ............................................................. FIC
Ball valve ...........................................................................BIC
Ball valves .........................................................................BIC
Battery magnets .................................................................... 32
Brake motor .................................................11, 15, 21, 29, BC
Configurable safety relays ..................................................... 32
Electronic switches ............................................................... 31
Energy consultancy service ................................................... 33
Flame proof motor ......................................11, 15, 21, 29, BC
Flange mounting motor ...............................11, 15, 21, 29, BC
Flap wheels ............................................................................. 9
Geared motor ...............................................11, 15, 21, 29, BC
Insulating material solutions ................................................. 4
KEC AC motor ...........................................11, 15, 21, 29, BC
KEC DC motor ..........................................11, 15, 21, 29, BC
Laser cutting systems ............................................................ 32
Low-emission tapes .............................................................. 32
Material handling equiptment ............................................. 7
Measuring instrument ....................................................... FIC
Mobile storage systems ......................................................... 32
Mops ....................................................................................... 9
Motors .........................................................11, 15, 21, 29, BC
Precision plastic moulded products ...................................... 32
Pressure gauges .................................................................BIC
Pressure reducing valves .....................................................BIC
Proximity switches ................................................................ 31
RFID technology .................................................................. 31
Shrinking technology ......................................................... FIC
Slipring crane duty motor ...........................11, 15, 21, 29, BC
Smooth starters ..................................................................... 31
Testing system ...................................................................... 31
Time switch .......................................................................... 31
Tool holder ........................................................................ FIC
Tool logistics system .......................................................... FIC
Products Pg No Products Pg No
4 DSM India Pvt Ltd +91-20-66430800 [email protected] www.dsmep.com
FIC Haimer India Pvt.Ltd. +91-20-66 75-05 51 [email protected] www.haimer.in
31 Jayashree Electron Pvt Ltd +91-20-27130295 [email protected] www.jayashree.co.in
BIC K P Sales +91-240-2553769 [email protected] www.kpsales.in
32 Kumbhojkar Plastic Moulders +91-20-24450055 [email protected] www.kumbhojkarplastics.com
7 Om Sai Engineers +91-240-2556225 [email protected] www.omsaiengg.com
33 Perennial Technologies Pvt Ltd +91-20-22953511 [email protected] www.perennial.co.in
9 Swajit Abrasives Pvt Ltd +91-240- 2553787 [email protected] www.abracutindia.com
11; 15; 21; 29; BC The Indian Electric Co +91-20-66865200 [email protected] www.indianelectric.com
Looking For A Specific Product?Searching and sourcing products were never so easy.
Just type SRCH (space) Product Name
and send it to 51818eg. SRCH Pump and send it to 51818
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