Focus on ease of doing business

June 29, 2015 4:58 pm

Besides attracting the foreign players to invest in manufacturing process in India, it further calls for India players to upgrade their factories to the global standard.
Manish Walia, Vice President, Industrial Automation Business Group, Delta India__________________________________________________________________________
 Delta India Electronics is a 100 per cent subsidiary of Delta Electronics (Thailand) PLC, a group company of Delta Group. Operating in India since 1992, Delta India Electronics India is the leading provider of telecom power solutions and a major source of industrial automation, display solutions, UPS, DC fans and blowers, components, bio-medical, LED lighting, automotive electronics and renewable energy products.
In an interview with OEM Update, Manish Walia, Vice President, Industrial Automation Business Group, Delta India gives us insight into what the government can do to help make ‘Make in India’, a better initiative and how aspects of the campaign are helping India.
‘Make in India’ will benefit global players“The ‘Make in India’ initiative is obviously going to give a boost to the automation sector. Besides attracting the foreign players to invest in manufacturing process in India, it further calls for India players to upgrade their factories to the global standard. With continuous pressure on profitability improvement, manufacturers are keen to invest in solutions which will help them increase their productivity by optimising minimal assets and focusing on improving Return on Investment (ROI), increasing reliability, and efficiency,” asserts Mr Walia.
‘Make in India’ will be a game changerMr Walia remarks, “As the economy becomes more accessible to global market players, Indian manufacturers are realising they must modernise their production plants and processes in order to stay competitive. Improving the operational excellence is another aspect that we have to address to position our nation as a global manufacturing powerhouse and compete with large economies. The ‘Make in India’ initiative has to embrace the concept of smart factory which will ensure greater adoption of automation and world class manufacturing practices. A smart factory consists of intelligent, networked machines that operate both autonomously and in cohesive way for the output of customised products.”Restructure the policies as suitedManufacturing, as an industry segment, has a crucial contribution in the national development and has more or less insulated the Indian economy from global turmoil. However, the government has to create an atmosphere conducive for the manufacturing industry, easing out the policies for FDI, land acquisition; better infrastructure as far as road and power is concerned. Quick action on key large infrastructure projects will help in boosting the confidence of the investors. Some issues concerning the investors are land acquisition, bureaucratic hurdles and environmental clearances. Clarifications are needed in these aspects. Further India’s small and medium-sized industries can play a pivotal role in taking a big leap in manufacturing. India should be more focused towards novelty and innovation for these sectors.
Poor infrastructure negatively impacts business growthManufacturing accounts only for about 15 per cent of the Indian GDP. India is ranked very low in the World Bank’s index of ease of doing business. Regulatory bottlenecks are one of main hindrances that we have to address on priority. The government has to eliminate old regulations and replace them with updated laws to suit modern times and streamline compliance and enforcement procedures. “Poor infrastructure and lack of constant power cuts is perpetual issue in India as far as doing business in India. We also have to encourage Research and Development (R&D) programmes taken up by the companies as well as in academic institutions,” says Mr Walia.
MUDRA bank will help SME’sGovernment has proposed a number of special benefits that will help the domestic manufacturing sectors, particularly SMEs. Easier access to bank finance through appropriate bank lending norms, incentives for acquiring appropriate technologies etc will help the domestic manufacturing sector to a long way. “Setting up of MUDRA (Micro Unit Development and Refinance Agency) Bank, specifically to finance the small entrepreneurs is an another very positive step in this direction,” observes Mr Walia.
Delta is integrating its product rangeOver the Last few years Delta Industrial Automation Business has gained tremendous momentum with an increased market share rapidly in all three of product segments: Drive, Motion and Control. In recent times, Delta has started consolidating its presence in Tier-II and Tier-III cities as the companies are putting up their factories and manufacturing plants in these cities. On the product side, it has developed new applications and introduced new range of product lines. In recent years, it has integrated its industrial automation products, developed industrial control networks, and offered integration services to the clients around the world. “We have the widest product range of industrial automation and introducing new ones at a very rapid pace,” claims Mr Walia.