Increase in demand plays pivotal role in producing quality products

June 21, 2016 2:06 pm

  With the introduction of ‘Make in India’ campaign, the government has paved way for the growth of manufacturing companies in India. This move has further evolved the consumers and their demands further leading the manufacturing companies to continuously improve and innovate their products to provide the market with the best quality.
In an interview with OEM Update, K V Suresh, Country Head for ZF in India and Head of ZF India Pvt Ltd shares his opinion on what would be the future of ‘Make in India’.
Government has received numerous investment proposals The ‘Make in India’ campaign has opened new avenues for the Indian manufacturing sector. The government has received numerous investment proposals post the launch of the campaign. Various global companies have been aiming to set up a strong foothold in the country, leading to a level of global competitiveness in the country. Advanced and futuristic products have been introduced in the market; companies are investing in R&D activities to come up with innovative products to better service customers. This has further led India to gradually be recognised as a global manufacturing hub while boosting the Indian economy.
Demand to drive more productivityThe government has instilled confidence in the auto component market with assurance of positive policy changes and reforms. Consumers today have evolved and so have their demands. This increase in demand of Indian consumers is going to play a huge role in pushing manufacturers to produce Indian made quality products to cater to their needs. The more thrust on manufacturing, the more number of jobs and better the infrastructure of ancillary industries. 
Exports are also going to play a significant role in guaranteeing success of this initiative.  Also since boosting manufacturing would involve sourcing of raw materials and finished goods, this would lead to the upgrading of infrastructure such a port-to-inland connectivity, cargo airports and the likes. Overall, ‘Make in India’ initiative will give a much required push to all supplementary businesses transforming India to a global manufacturing hub.
Talent & large consumer base attracts global playersIndia offers potential investors in the manufacturing sector a number of competitive advantages. India’s own domestic market is large, with over 600 million rural consumers. Workers’ wages in India are less than half of those in China. India has a large talent pool from which to draw, including a strong engineering ecosystem.
From a strategic point of view, growth in the coming decades will come from the developing world. India is in an excellent position to serve emerging economies in Latin America, Africa and elsewhere in Asia. Currently, that represents about 11 per cent of India’s export market, but it is set to grow dramatically. India’s competitive advantage is in technology-intensive manufacturing which makes it a preferred destination for investments from global players.
Challenges & obstaclesThe first and foremost challenge is the large number of regulatory bottlenecks. To set up a manufacturing centre in India, companies need to go through a series of procedural and regulatory clearances to get due permissions. India has been strict with approvals of projects which once dealt with will contribute largely to a business friendly environment.  
Additionally, for any industry to flourish there needs to be adequate technological innovation and push as modern manufacturing is all about technology, R&D, skill and innovation. To keep pace with the global growth, the ‘Make in India’ campaign needs to be treated as an imperative rather than an option. An increased focus towards novelty and innovation is going to add greatly to this vision.
Facilities to expand in IndiaZF inaugurated 21 acres of state-of-the-art manufacturing plant in Chakan, Pune with an investment of nearly €20 million ( Rs 150 crore). This new facility will be home to Car Powertrain and Commercial Vehicle Technology, ZF Services, Engineering and the administration of ZF India Pvt Ltd.
ZF Hero Chassis systems Pvt Ltd, a 50-50 JV ZF India Pvt Ltd and Hero Motors Ltd were also inaugurated in Oragadam, Kanchipuram district. This unit will focus on assembling front and rear chassis systems.
Consumers today have evolved and so have their demands. This increase in demand of Indian consumers is going to play a huge role in pushing manufacturers to produce Indian made quality products to cater to their needs.K V Suresh, Country Head, ZF in India & Head, ZF India Pvt Ltd