Category — Industrial Goods
Fortune 500 company New Jersey headquartered Sealed Air Corporation says India is its fastest growing geography. “India for us I would call within Sealed Air, a mid-sized country, it’s in the top 15 countries but with the highest growth rate,” Jerome Peribere, president and CEO told the television network NDTV.
Sealed Air is a packaging company known for its brands – Cryovac food packaging, Bubble Wrap cushioning, and Diversey cleaning and hygiene. It has two units in India – in Mumbai and Bangalore. The company is growing at 3 times India’s GDP growth and expects even more robust growth going forward by creating value addition in industries.
Because of the company’s level of expertise in their laundry business in India where their technology has been able to save 40% both in the usage of water and in energy consumption, Peribere said, “We are going to increase our manpower by 50 per cent, and we are going to make our global laundry labs in India because we have an extraordinary and growing business here in India.”
January 13, 2015 No Comments
Steel scrap is a vital raw material for the production of new steel and cast-iron products, and is a hundred percent recyclable. Since domestically generated steel scrap falls short of requirements by the casting and steel making industries, India imports this resource.
In 2013-2014 India imported five million tons of steel scrap, making it the world’s third largest importer of the metal, after Turkey and South Korea. While there is no official data on the amount of steel scrap being produced within the country, rough estimates put the figure at around ten million tons a year.
Steel is the most recycled material in the world with scrap accounting for 40 percent of the global steel production, reports The Hindu BusinessLine. The re-melting of scrap requires much less energy than the production of iron and steel products from iron ore.
The U.S. steel industry has been recycling steel scrap for more than 150 years, and the steel making and foundry industries are highly dependent upon the ready availability of scrap from manufacturing operations, and from the recovery of products that are no longer used or needed. The country also exports scrap iron mainly to Turkey, Taiwan, the Republic of Korea, and China, and will likely continue exporting valuable ferrous scrap for at least another decade.
December 31, 2014 No Comments
The long-awaited goods-and-services tax bill, or GST Bill, aimed at creating a single sales tax for goods and services across the country, was introduced in the Lok Sabha (the lower house of parliament) on December 19, by the Finance Minister, Arun Jaitley.
While India is one nation of 1.24 billion people, it isn’t functionally one market. When a business sells across state lines, it encounters levies including border taxes, local sales taxes, a central service tax, federal excise, a central sales tax and other duties that often vary by state and product.
“It is expected that introduction of GST will foster a common and seamless Indian market and contribute significantly to the growth of the economy,” Jaitley said. The Federal government has committed to compensating states fully for the next three years on account of any revenue loss. The compensation would be partial in the following two years.
“This is by far the biggest tax reform in the country,” Devendra Kumar Pant, chief economist at India Ratings & Research, the local unit of Fitch Ratings. “The implementation will reduce transaction costs and spur investments,” he added. KPMG opined, “The speed with which the government has introduced the bill in the parliament shows the seriousness attached with this important reform.”
Since the tax requires a constitutional amendment to be enacted, it must be approved by 15 of India’s 29 states as well as both houses of parliament.
The GST Bill, which will bring the “single biggest tax reform since Independence”, will be considered for passing in the budget session of parliament beginning February 2015, the finance minister said.
December 21, 2014 1 Comment
Solvay SA, the 150-year-old Belgian company that’s moving from commodity chemicals to specialty materials and additives, will expand a high-performance plastics plant in India to cope with demand from smartphone and aircraft makers.
Production of polyether ether ketone polymer resins, known as PEEK, will increase 25 percent at the Panoli plant in the state of Gujarat, the Brussels-based company said. Demand for PEEK and related compounds is growing at about 8 percent to 10 percent annually as handset and tablet makers need heat- and chemical-resistant plastics to fit more technology into a smaller space.
“Today’s announcement to de-bottleneck capacity shows we are determined to keep pace with this growing demand worldwide,” Augusto Di Donfrancesco, president of Solvay Specialty Polymers, said in a statement on December 3, 2014.
December 5, 2014 No Comments
Located 42 miles from Pune in the state of Maharashtra is a village of rice growers, who for many decades had to trek to a neighboring village to get their raw rice de-husked because their village did not have the power supply to run the dehusking machine.
Enter Cummins Inc., or rather the Indian subsidiary of the Indiana-based engine and generator maker.
In 2011, Cummins Power Generation worked with the Indian Institute of Technology, Mumbai, and non-profit Maharashtra Arogya Mandal to develop a generator that ran on biofuel generated by the oilseeds of the Pongamia tree. This innovation was used to power the village’s own electric de-husker. “If you have to understand how Indian this company is and how specifically we tailor our products to the needs of our customers, this is it,” said Anant J. Talaulicar, chairman and managing director of Cummins India Ltd.
This anecdote explains why the maker of fuel systems and power generation equipment (among other products) has emerged as a rare example of a successful manufacturer in India, making products for both domestic and overseas markets.
There are four boxes that a company must check to demonstrate whether it has been successful in an overseas destination:
- Has the company been able to use the country as a market for its products?
- Has it been able to use the country as a production base, to manufacture for the market and the rest of the world?
- Has it been able to use it as a sourcing base?
- Has the company used the country as an engineering base, to design and develop products?
Cummins checks all the boxes.
While most multinational corporations get hand-me-downs in terms of technology from their parent, Cummins does a significant part of its R&D work in India. Cummins Research and Technology India Ltd, a division set up in 2003 does analysis-led design work that reduces cycle time for new product development and minimizes time involved in physical prototype testing. In fact, Cummins is setting up an advanced technical center in Pune that will house about 2,000 engineers and is expected to come up by September 2015. “Only about 15% of that work will be targeted for the domestic economy. The rest will be for global purposes,” said Talaulicar.
When India moved from to Stage II to Stage III fuel emission norms, several automobile manufacturers installed electronically controlled engines, but Cummins created a lower-cost mechanical solution which Tata Motors used very successfully.
“Today we have significant engineering skills in the country and we are completely integrated into Cummins global engineering network in terms of the reporting relationships. Information system is seamless. We don’t simply take global technology and force-fit them for India. We significantly customize products and localize heavily,” added Talaulicar.
Localizing sourcing and making products according to the specific needs of customers is a complex business. Talaulicar, though, believes that it is inevitable because the nature of the Indian market is very different compared with other parts of the world.
November 25, 2014 No Comments