16th ‘Vision 2022’ conclave for CEOs & “UDAAN” members of the Indian machine tool industry

"Enabling US$ 1 Trillion Mfg Economy -- Role for Indian Machine Tool Industry"

14 - 16 November 2019: Hotel Taj Swarna: Amritsar

Retrospect

Background

The agendas were :

• Current scorecard, revisiting the ‘Vision 2022’ and evolving framework for ‘Mission 2022’
• To capture inputs on setting tone for enabling US$1 Trillion mfg. economy- what and how
• Comprehensive inputs and analysis on Machine Tool Imports
• Status and Inputs for revitalising Forming technologies
• Inputs on high potential growth avenues – Heavy Machinery, Agricultural sector and other
• Inputs on New avenues for growth – Organic, Inorganic, Diversification, Emerging sector
• Inputs on adopting green manufacturing practices in industries for sustainability
• Inputs on using Business Analytics as a strategy for resolving issues and enhancing productivity
• Inputs for achieving Techno-Excellence for bridging technology gap, matching the performance of imported machine
• Inputs for creating digitalised manufacturing enterprise and Roadmap to a Digitised Enterprise
• Inputs for facing the Current Challenges and Future prospects in Auto sector
• Inputs for Export-led growth for long term sustainability and Success stories by industry experts

Organised by “UDAAN” under the aegis of Indian Machine Tool Manufacturers’ Association (IMTMA), ‘VISION 2022’ was scheduled from 14th to 16th November 2019 at the Hotel Taj Swarna, Amritsar, Punjab. The Conclave was well attended by 55 CEO’s including 14 UDAAN and 12 EC members.

Session I – ‘Inaugural Session’

16th ‘VISION 2022’ was inaugurated by “Gurus” – Mr. R. Srinivasan and Mr. Shailesh Sheth; Former Presidents – Mr. Shrinivas G. Shirgurkar and Mr. P. Ramadas; as well as current Office-bearers – Mr. Indradev Babu, Mr. Ravi Raghavan and Mr. V. Anbu.

Mr. Indradev Babu, President - IMTMA – said in his motivating ‘inaugural address’ that for enabling 1 Trillion USD manufacturing economy by 2025, all the industries should come together and set the roadmap. Further he called upon industries to focus on exports, aim for double digit growth and also develop products and customised solutions to non-auto sectors in addition to auto. He also mentioned that the Vision conclave is more meaningful because of the slowdown and called upon all the CEO’s to review and chart out framework for achieving Vision 2022.

Mr. Ravi Raghavan, Vice President - IMTMA – sharing his thoughts mentioned that efforts by industries resulted in moving to 9th position in Machine Tool building and to move one notch above the goal for industries should be 30% growth in CAGR for the current year which calls for 3 times the effort and cautioned that the climb is steeper and industries need to work hard. He said, industries need to align with Government’s vision like USD 5 trillion economy, transformation in auto sector and transform themselves. He called for export led growth although it is competitive and explore opportunities as a result of trade war and related global trepidations. Further he said that industry 4.0 and digitisation to be accepted and implemented by industries.

Mrs. Madhavi Chandrashekar, Chairperson “UDAAN” – in her welcome address mentioned about India’s resolve to be a US $ 5 trillion economy by 2024 - 25. This ambitious target is said to be arrived at by combining the goals for the three pillars on its economy – US $ 1 Trillion each from manufacturing and agriculture; and balance US $ 3 Trillion from services. Theme, therefore, for the 16th ‘VISION 2022’ Conclave was focused on “what and how” the Indian machine tool industry would support and enable Indian manufacturing to achieve US $ 1 Trillion six years from now.

Session I – ‘Inaugural Session’

‘Special Address on Manufacturing VISION of US$ 1 Trillion’

Mr. Rajah Augustinraj, Principal, Boston Consulting Group India, mentioned that manufacturing and industrials globally being shaped by macroeconomic changes- slow global GDP growth, competition from China, Shift in consumer demand towards services and Technology – creating new products and services. He said interventions are industries to enhance export market share, substitute imports and focus on emerging sectors for accelerated growth. He suggested global joint ventures, global presence and building Brand image for enhancing export potential. He also suggested five directional measures- strong localisation, investments in R&D, building local & global champions, skill development, promotional and global presence for meeting the aspiration of US $1 Trillion Manufacturing Economy.

Session II – Special Session

‘Current Scorecard’ and ‘Current Standing Points in Indian Machine Tool Industry’

‘Current Scorecard’

Mrs. Madhavi Chandrashekar outlined the prevailing machine tool consumption, production and import scenario. She said that to climb one rank in production industries need to grow three fold which is possible by export oriented growth, new product offerings and market expansion in non-auto sector. She urged the participants to evolve strategy for overriding ‘Boom-Bust cycle’ during the course of the conclave deliberations.

‘Current Standing Points in Indian Machine Tool Industry’

Mr. Shailesh Sheth urged industries to expand their product bandwidth and adopt solution driven approach to address the needs of emerging and sunrise sectors of Indian industry – aerospace, medical, railways, high precision, heavy engineering and other. He mentioned that Indian industries are fragmented and needs consolidation, capacity and capability enhancement, higher R&D spend for import substitution and export. He called on industries to be aspirational and shift from domesticated to export oriented mind-set.

Session III – Special Session

“Report on Comprehensive Study on Machine Tool Imports”

Mr. P. J. Mohanram, Senior Advisor - IMTMA, presented detailed analysis of country-wise imports and also based on the machine type and listed out opportunity areas for indigenisation and exports.

Session IV – ‘Resuscitation of Forming Technologies’

Mr. Vivek Nigam, Business Head - Presses & Contract Manufacturing, ISGEC Heavy Engineering Limited insisted upon industries to explore and exploit opportunities in Forming in auto-EV and other sectors. He advised industries to invest in R&D and related infrastructure for increasing exports and for overcoming boom-bust cycle.

Session V – Theme Session

‘Heavy Machinery’  and  ‘Agricultural Implements’

‘Heavy Machinery’

Mr. Sanjeev Rastogi, Additional General Manager, Advanced Manufacturing Process & Technology, Bharat Heavy Electricals Limited mentioned that BHEL aspires to reach $1 trillion by 2025 requires CAGR 17 to 18% growth. Fast changing market, shorter project execution & delivery time, stricter quality an technical norms, product obsolescence, rising manpower cost are the challenges. Continuous modernisation of facilities, bridging technology gaps, developing higher performance products & processes, Special purpose machines, digitisation,  AR/VR, adopting emerging technologies like additive manufacturing offer opportunities for growth.

‘Agricultural Implements’

Mr. Sarbjeet Singh Panesar, Secretary, Agricultural Machinery Manufacturers Association mentioned agriculture is contributing 14% of GDP. Farm mechanisation, automated IoT based agriculture, seeding & planting, post-harvest management, translation of mechanisation in to automated IoT agriculture, real-time crop-monitoring, and the entire value chain offers unbounded opportunities for industries and advised industries to explore and offer total solution for the sector including horticulture. He suggested machine tool industry to explore agricultural machinery, farm implements industry, agricultural process automation and sharing of industries materials and process knowledge for the agricultural sector.

Session VI – “New Avenues for Growth – Diversification; Organic; Inorganic”

Mr. Amritpal Singh, Project Manager - India, Roland Berger Private Limited mentioned that although currently industry is going through slowdown it will bounce back in the long term and cautioned industrialists to be aware of imports overriding production of machine tools in the coming years. He suggested industries to have technology acquisition, Joint Ventures with established foreign player to bridge technology gap and for bring technical parity for import substitution and exports. He said industries to focus on R&D, Innovation and new process and product development for sustainability.

Session VII – ‘Going..... Green’

Mr. S. Raghupathy, Deputy Director General, Confederation of Indian Industry (CII) mentioned that green is a business strategy having potential to add value and urged the top management for adopting and promoting green practices. Green practices brings optimal utilisation of resources apart from being environmentally friendly. He advocated green procurement policy, scarp management. He mentioned that products designed should be green as buyers are assessing total cost of ownership of the product during procurement.

Session VIII – “Business Analytics for Strategy Development”

Mr. Rajesh Ashokan, Head, Business Intelligence – ‘Centre of Excellence’, HTC Global Services (India) Private Limited gave overview of business analytics (BA), benefits and using BA as a strategy with examples and case studies.  He mentioned that in capital goods sector, BA finds application in supply chain optimisation, enhancing resource efficiency, demand forecasting process improvement, enhancing production efficiency etc.

Session IX – Plenary Session

“Strategic Growth through Techno-excellence”

‘Roadmap to a Digitised Enterprise’

Mr. Rohan Sangeni, Strategic Growth Manager, Entrib Analytics Technology Private Limited gave inputs for planning and executing digitisation in phases by industries and also briefed about the implementation challenges industries need to overcome. He mentioned that machine learning, AI and AR/VR are part of future roadmap and stressed on skilling the workforce as a strategy for implementation.

‘Manufacturing Process Technology’

Mr. R. Srinivasan stressed on improving machine tool products to match imported products, substituting imports and enhance exports. He advocated machine tool OEMs to ‘come out of Auto Prison’ and focus on non-auto sectors.

Mr. Y. Balaramaiah, Director, Advanced Machine Tool Testing Facility (AMTTF) explained with case studies how reliability, quality and performance of machines could be enhanced and what needs to be done religiously for building machine tools matching imported ones.

Mr. P J Mohanram summarised and stressed on using the expertise and services of AMTTF to engineer machines scientifically and build quality machines matching global products.

Session X – Special Session

“Indian Auto – Harbinger towards US$ 1 Trillion”

‘Auto Current Challenges and Future Prospects’

Mr. Vishnu Mathur, Former Director General, Society of Indian Automobile Manufacturers gave an overview of Indian auto and auto component industry. He said that there is enough room for growth for auto and machine tool industry despite adoption of electric vehicles. He said that future of mobility is connected, shared, sustainable, safer, cleaner, electric vehicles. ICE cars will still be operating till 2030 and offer opportunity for auto components industry and machine tool industry. He called on industries to align with EV and other changes taking place in the industry, find opportunities and embrace & adopt by planned transformation.

Session XI – ‘Export-led Growth’

Mr. Sunil Taneja, Managing Director, Ind-Sphinx Precision Limited mentioned that exports are important for growth and asked industries to dot segment-driven market approach. He also said that ‘Need behind need’ to be addressed which will bring value for products and boosts customer confidence. He added that emerging segments like medical, space, aerospace, electronics offer huge opportunities for industries.

Mrs. Mohini Kelkar, Director, Grind Master Machines Private Limited asked industries to go global, set footprint and build value and brand name. She also mentioned that downturns and recessions offer new and different opportunities for companies and industries need to take advantage. She suggested to industries for adopting Market Sensing Innovation instead of Market Driven Innovation. She also mentioned that demanding international customer base drives innovation and always exceed customer expectations. She asked industries to fund and propel internal R&D and strive for product and process innovation led growth.

Mr. Vivek Nigam, ISGEC Heavy Engineering Limited mentioned that industries and economy looking for multiplier growth must export and go global. He mentioned that even if domestic market is strong it is imperative to export and fierce export market is good for companies to innovate and excel. He also suggested industries to scout for opportunities in high value and high cost segment for growth.

Session XIII – Workshop on

‘MISSION 2022’ for a New India

Vision Gurus, Mr. R. Srinivasan and Mr. Shailesh Sheth conducted workshop on ‘Mission 2022 for a new India’. Groups were formed for brainstorming and discussing and deliberating and arriving at ‘MISSION 2022’ goals. Groups charted out ‘MISSION 2022’ and ‘Roadmap for MISSION 2022’ as an outcome of the ‘VISION 2022’ Declaration.

Session XIV – Concluding Session

‘Way Forward’

Mr. Indradev Babu, President - IMTMA, in his concluding remarks said that the 16th ‘VISION 2022’ Conclave was educative and explorative, moving from ninth to eighth rank in machine building is a huge task, stressed on the importance of exports. He mentioned that inculcating design ethos in machine and product building in terms of appeal and aesthetics is important for garnering export market.

Mr. Babu appreciated and thanked “UDAAN” members, “Gurus”, facilitators, and CEO’s, participants and industries for their effort, contribution and for making this Conclave a great success.

‘MISSION 2022’ and ‘MISSION 2022 – Roadmap’ conceived at the conclusion of the 16th ‘VISION 2022’ Conclave is given below: