Dormer open to acquisition in India

February 17, 2015 11:54 am

“We are convinced to grow in emerging markets like India and China. To achieve this, we are open for a 100-per cent acquisition in India,” says Fabrizio Resmini, Group President, Dormer Pramet
 Dormer is one of the leading manufacturers of solid carbide and high-speed steel rotary cutting tools globally. In October last year, Dormer announced a merger with Czech Republic-headquartered cemented carbide specialist Pramet, both members of the Sandvik group.
Together, the united operation of Dormer Pramet offers a combined product programme that encompasses a comprehensive range of rotary and indexable drilling, milling, threading and turning tools for the general engineering sector.
Dormer Tools India Pvt. Ltd. operates as a subsidiary of Dormer Tools and offers products under three brands: Dormer, Pramet and Carboloy.
Currently, the company imports its Dormer branded products from its facilities in Brazil and Sweden whereas the Pramet products are being sourced from its Czech Republic plant.
Positive outlookDue to the large consumer base, Dormer considers India as a potential market for its products. Despite slowdown in global markets, the company has achieved a double-digit growth in India. Talking about the current trends in Indian market, Fabrizio Resmini, Group President, Dormer Pramet said, “Mature market like the US has shown significant growth in the second half of the last year. We think that this year will also be good. India is a growing market and in 2015 we expect a very positive growth here.”
Undeniably, the Indian industry lacks competitiveness as far as manufacturing sector is concerned. Today, the policy makers and industry bodies are putting efforts to enhance competitiveness within Indian manufacturing sector. Citing the advantages of increased competitiveness Gautam K. Ahuja, Managing Director, Dormer Tools India Pvt. Ltd. said, “Competitiveness definitely brings the best in people as well as the company. It helps everyone to innovate new products and technology. Different types of machines will keep coming and we have to evolve the new products in that.”
Mr Resmini feels innovation is the key to increase competitiveness. He said that Dormer Pramet invests around 3 per cent of total sales in R&D globally. 
Value for moneyStefan Steenstrup, Business Development Director at Dormer Tools PA (Italy) observes that the Indian market is cost competitive due to the presence of local manufacturers. However, he feels, Dormer products are way ahead of competitions due to their quality features and reliable operations. He said, “Dormer products are designed to offer higher productivity, versatility and maximum reliability. These are very important for our customers to maintain consistency in their product line.”
Growth pathStarted with 6-7 people couple of years back, today Dormer has grown up to a team of more than 20!. The company is enhancing its sales network to reach closer to the customers. Highlighting the major sales strategies for Indian market John Eustace, Sales Director, Dormer Tools Limited (UK) said, “We are very much focused on improving distribution channels in the ‘Domer way’. We feel the Indian market is very much relationship driven as well.”
The big newsIn an aim to gain additional market share in the Indian market, Dormer plans to localise its product line. Revealing the same Mr Resmini said, “We are convinced to grow in emerging markets like India and China. To achieve this, we are open for a 100-per cent acquisition in India.” The possible acquisition should be completed before 2016, he hinted. Post acquisition, Dormer expects a market share of around 16 per cent in India.
New launch at IMTEXDormer was present in a big way in the recently concluded IMTEX 2015. The company launched a few new products in this international exhibition. “A square shoulder mini cutter with a small insert ADMX07 and a new Shark Line of taps were the major highlights at IMTEX,” informed Dinesh Kumar, Assistant Manager – Commercial & Logistics, Dormer Pramet. The company had also introduced some new inserts for railways at this event.