In a conversation with EPC World
Tushar Mehendale, Managing Director, ElectroMech Material Handling Systems (India) Pvt. Ltd shares his opinion on the Make In India campaign and his plans for ElectroMech.
How was your experience at the “Make in India Week” ? What are your views about the concept of this event?
The experience at Make in India was revitalizing. I feel it is a fantastic concept to reinvigorate the manufacturing and the allied sectors.The event initiated by the Government of India has turned India into a brand which is focused and raring to go. In eyes of the international investor India had never emerged as the premium manufacturing destination, we were always overshadowed by China. But the Make In India drive has made an attempt to change that perception.
I personally believe that the way in which the Indian manufacturing sector has come up is truly recommendable, especially, if we compare it to the rest of the world. Today Indian companies are going global and acquiring companies in other countries and becoming multinationals in their own way.
When it comes to talent, skill sets and capacity, we have it all but statistically these parameters somehow remained fragmented, the impression of Brand India was missing. Make in India has created the requisite branding for the Indian manufacturing sector . The overseas investor is now well aware of the different possibilities we as a nation can offer. It also encourages us as manufacturers to take pride in the fact that we create world class products and touch billions of lives across the world.
A very specific question is about the state of Maharashtra which was once the premium choice of the manufacturing industry. What went wrong and how can we restore its lost glory?
In Maharashtra the unavailability of power and the roads led the land prices to really shoot up. Roads were not available to provide access to the remote parts. Industries were not able to set up factories owing to legal issues pertaining to land acquisition. However the power related issues are almost on the verge of getting resolved. New roads have been developed and transportation is getting better. Recently government has also liberated the land convergence law so it becomes easier for companies to go and buy land. With easy access, guaranteed power, proximity to skilled populace it has become easier for companies to get the required work force. Maharashtra as a state will always be at the forefront. Though some glory had been lost but it still continues to be a leader in terms
of industrialisation.
Do you think Make in India will unveil a new era for Maharashtra as far as the manufacturing industry is concerned?
It is good not only for Maharashtra but for India as a whole. Most of the top notch companies, which are present in Make in India, have their headquarters in Maharashtra, so it is definitely going to help. And I am talking about the manufacturers like L&T, Tata’s, Kalyani steel, all of whom have a significant footprint in the Indian manufacturing sector.
How do you look at the infrastructure being developed? Most of the projects have been in the slug for a couple of years. How do you think it is changing in current time?
The good part is road projects are getting executed in a timely manner. I would say that having a transport network in place is also a key part. Once the road network is built up and expanded, it facilitates the transportation of the raw materials as well as the finished goods thus benefiting the manufacturing industry like cement, earth moving equipment and commercial vehicles. Overall, we have seen resurgence in some of the projects which were initially stuck. Majority of the bottlenecks I feel have been eased out.
What about the pace of the structural reforms in the country? Do you think that the environment is conducive enough for such large investments as expected from the ‘Make in India Week’?
You need to evaluate where we were three years back. Things are much easier now. Today, ElectroMech has active presence in Italy, Dubai, Abu Dhabi, Kenya and South Africa. I know how difficult it is to work in these countries. We really have to step out of the country to realise that it is much easier working in India. The financial system in the country is much stronger. And I must add that the work on “Ease of Doing Business” is a continuous process, it is dynamic so one should not come up with rules which cannot be modified.
ElectroMech manufactures industrial and tower cranes. How is the tower crane vertical doing in the current times, considering that the real estate sector is struggling?
When it comes to the usage of tower cranes, it is not limited to the real estate sector alone. We also use it for building dams, refineries, nuclear plants etc. So tower cranes are utilised both in the industrial and the real estate segment.
Having said that in the industrial segment, the technology is consistent, the technology is state of the art; but when it comes to real estate, the technology is rapidly changing day by day. Initially we had cast, now people are moving to precast, people are moving to form work technology, people are moving towards aluminum form work for high rises.
All the technology is necessitated to handle heavy loads. Initially, we had people carrying loads on their head moving up and down on the scaffold like monkeys. And now we are erecting buildings in a time span of 2-3 months using form work technology. So with this evolving technology, the need and usage of the tower crane is going to improve drastically. Even though the real estate sector is experiencing a demand and supply mismatch and going through a lean period, the business of tower cranes is growing at steady rate.
Would you please tell us about ElectroMech’s presence in the international arena?
Our journey from a small Indian company to an established industry leader inspires us and motivates us to go further. Currently we are present in 41 countries across the world and have existing tie-ups in 7-8 countries. It is our intention establish ElectroMech as a true Indian multinational.
The two countries which everyone is talking about is Iran and Afghanistan. Are you looking at the opportunities in these two countries too?
Yes we are looking at these markets. Iran is in the limelight once the international sanctions were lifted. When Iran was reeling under sanctions, the state developed a robust manufacturing industry. But one has to remember that Iran was behind the curtain for a very long time, so we have to understand the market and see how it can be tapped.
Shouldn’t the Indian government be proactive in promoting its own industry as well?
Rather than the government, it is the private sector which is going to play an active role in the Indian economy because its ability to delegate risks is much higher. The players who are present in the Make In India pavilion are the risk takers and in doing so they have become industry leaders in their own way. I believe that the government should exert its influence as a facilitator.
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