Welding equipment manufacturers need consolidation

June 17, 2013 7:26 am

With increased focus on welding automation products, we have expanded and invested our energies in producing newer, better products which can reduce cost and give better performance”
Nimesh Chinoy, Marketing Director (SigmaWeld), Electronics Devices Worldwide Pvt. Ltd.
 
Welding industry is directly related to the growth of steel, infrastructure, power generation, automobile, and heavy industries. Most or all of these manufacturing-dependent industries have shown negative growth in last year. Major projects have been put on hold and expansion plans have been shelved for the moment. This has directly impacted the welding industry which has registered a negative growth to the tune of 20 to 25 per cent. Nimesh Chinoy talks about welding industry, the effect of Union Budget and how the manufacturing industry can contribute 25 per cent to India’s GDP.
Welding industry in 2012 There is a slump in demand, leading to excess supply. As the market is fragmented, many low-cost Chinese imports have found greater market shares. This has also led to small-time manufacturers to be driven out of the business or source from China.
The lack of skilled manpower and increased cost of labour have driven most companies to focus on semi-automatic to fully automatic welding lines. There is a great need for consolidation of the Indian welding equipment manufacturers where more investments in R&D and modern, large-scale manufacturing facilities can help create low-cost, high-value products within the country.
Spreading businessHaving spread its products in various markets and industries, Electronics Devices Worldwide has managed to retain its last year’s performance. There is no noticeable growth; however with increased focus on welding automation products, it has expanded and invested its energies in producing newer, better products which can reduce cost and give better performance.
Its other products like SigmaCapseal have registered significant growth with increased focus on exports. It has started our operations in America and is fast growing in European and American markets. Its induction heating division has also registered a positive growth with increased focus on replacement markets for forging and brazing applications from traditional gas or oil fired furnaces to highly efficient induction heating solutions.
Disappointing Union BudgetThe last Union Budget was expected to pump some growth incentives to various industrial sectors. This was disappointing as the desired level of growth was not realised in the manufacturing sector. Also, as there are no barriers on low-cost imports or incentives for Indian manufacturers, it becomes difficult for the manufacturing set-up in India. Innovation and increased focus on developmentKnowing the markets, Electronics Devices Worldwide was able to predict the drop in demand and increased pressure on cost reduction. The company was able to invest its time and energies on newer designs that helped it remain competitive in current market scenario. It was also able to add welding automation product range which added value to customers. Dealing ongoing constraintsThe focus on heavy commitment on research and development has helped the company remain competitive with high quality. It is still working on improving the efficiency internally to keep its overheads in check. Training of manpower, exploring of export markets and new products development — such as AC/DC welding power sources and high-end submerged arc welding products — add more value to the customers. It has also developed robotic compatible power sources.
Achieving 25 per cent GDP contribution India is poised for growth. The industry is still lacking in infrastructure, power, roadways, and railways (metro) across the country. Adequate incentives and push for reforms are the need of the hour for the 25 per cent GDP contribution. India has a long way to go as far as the manufacturing industry is concerned. With the right efforts from the public-private partnerships, it is possible to achieve this objective.