WAM India Intend to grow at a rate of 10-15% every year

June 16, 2010 5:32 am

WAM India
Intend to grow at a rate of 10-15% every year
 
WAMGROUP is a global player in the powder material handling and processing equipments segments. Anil Manduskar, MD and Amit Popatwala, DGM-Sales & Marketing, WAM India highlight the Company’s performance. They have also expressed their views about the manufacturing sector in India.
 
Incepted in 1969, as a one-man-operation to manufacture screw conveyors, the WAMGROUP has come to stand for innovation in bulk material handling technology and equipment supply. Can you brief us about your India business?
Anil Manduskar: At the end of 1996 a sales co-operation between WAM and a company from Mumbai (then Bombay) began. The Indian partner’s long-term expertise in solids handling later became the basic requirement for the establishment of a new subsidiary, called WAM Bombay.  After one and half years the business license was awarded. In view of the size and population of the Indian subcontinent the local management agreed on an initial limitation of its sales area to the states of Gujarat, Maharashtra and Goa. In 1999, the operation employed a staff of seven and enjoyed increasing sales mainly in the construction industry, chemicals and detergents.
In 2000, WAM Bombay was put in charge of entire Indian market. By the end of year 2005 a manufacturing line for screw conveyors was set up to which, in 2006, an assembly line for dust collectors and butterfly valves was added. On June 1st 2009, the company changed its name to WAM India Pvt. Ltd.
 
How do you see the potential of Indian market for your business?
Mr. Anil: WAMGROUP has been a strong player in the global market for powder material handling and processing equipments. In India, we have been able to satisfy the growing need of the country specifically in the construction industry and to a major extent we are trying to make a mark in other powder related manufacturing processes.
We are also experiencing a surge in the Indian manufacturing industry like food processing, chemicals, detergents, glass, plastics etc. Hence it will not be wrong to state that we have immense potential for the coming market in India.
 
Mr. Amit, which all the industries your products and solutions are catering for?
Amit Popatwala: As Mr. Anil told, we are providing products/components as solutions to organizations dealing with the handling and processing of powder and granular material. Our presence can be felt in sectors like Building, construction, Animal husbandry, animal feed, Food processing, packaging, chemicals, construction chemicals, detergents, mining, foundry, etc.
 
Brief us about your manufacturing facilities in India.
Mr. Amit: WAMGROUP’s manufacturing facility in India started in the year 2005 initially for the manufacturing of screw conveyors. However, as on today we do also make dust filters, butterfly valves. In the coming years, we intend to manufacture bin activators, motor vibrators, bucket elevators, etc. Basically, we intend to make the Indian subsidiary self sufficient in terms of manufacturing in view of the domestic market demand.
 
Tell us about the recent trend in manufacturing sector in India.
Mr. Anil: In India Material Handling terminology is used in a very general way.  We are specifically active in Powder and Granular handling and processing field.  In fact, that is our area of strength and specialization. Moreover, the overwhelming response received at Bulk Solids India 2010, Mumbai exhibition held in March, itself is an indicator that Indian Industry has opened up their arms to welcome better technology products. This also substantiates the increased demand in this sector.
Mr. Amit: Our major activity is in Construction equipment sector (Readymix concrete business – which handles cement, flyash and microsilica).  In this sector major European Companies have already established their manufacturing units in India. Therefore, the technology transfer has already been absorbed and accepted by the local market.  In other sectors like Detergent, Food, Glass and Chemical the Multinational companies have already adopted to the new technology offered by us.  The medium sized /small customers are following the roots established by the big Corporate.  Though this transition is a slow process it requires customer education, exposure and confidence building measures and we are working on the same.
Overall we expect the demand to grow by minimum 12 to 15% per year in the coming decade.
 
What are the problems being faced by the manufacturing sector in expanding its growth?
Mr. Amit: Majority of the users in construction sector have adapted to the technology completely. In other sectors most of the multinational companies have responded positively, with the mid size companies following track. 
International exposure has resulted in generating awareness of all the clientele and we are conducting technical seminars involving all important OEMs, major End Users and most importantly the technical Consultants to spread the awareness and the benefits of the technology , and they are responding very positively. Yet again BULK SOLIDS exhibition held first time in India with great success is a positive signal.
 
What is the road ahead to overcome those hurdles?
Mr. Anil: It is our global perspective to be a “COST LEADER IN THE INTERNATIONAL MARKET”.  We manufacture only about 30% of our global products in India and we intend to add at least 2 – 3 products each year to our local manufacturing plant.
In our manufacturing plant in India, we have localized about 55% components and 45% is still imported at present.  WAM INDIA intends to reach 75% localization of components within next couple of years.
The strategy is to maintain the quality and value for money concept with very close support to our esteemed clients.  In our view, this is the competing edge we have over other market players.
 
Where do you wish to see the manufacturing in India by the year 2020?
Mr. Anil: NASSCOM states that, “The resilient Indian engineering industry is poised to achieve $40-45 billion by 2020, with $35-40 billion from exports. It will be a quantum jump from $8.3-billion in 2009 from exports, growing at 40 percent average during the last three years.” Also it is estimated that India will add about 120 million people to its working population by 2020, constituting 28 percent of the world’s workforce, according to deputy governor of the Reserve Bank of India (RBI). In the decade of 2010-20, India will add 120 million people in the working age-group looking for employment which will make India’s working population 28 percent of the global force. With this, I foresee India becoming nation with abundance of technically qualified & well trained work force serving to the world.
 
What is expected to be the Company’s reach by then?
Mr. Amit: WAM India is now present across five locations in India and by the turn of the next decade we wish to have strategically located five warehouses and about twelve sales and services offices across the country to be in a much better position to be of assistance to our customers in need.
Till the end of the next five years we see a good growth rate averaging 30 percent per year, and further on we intend to grow at a steady and modest rate of 10-15 percent every year.
 
Please highlight some of your major milestones in India.
Mr. Anil: WAM Bombay Bulk Handling Equipments Industry started in 1998 as a joint-venture Company with WAMGROUP, S.p.A Italy.  Right from the beginning, we had technology transfer agreement and plans to start production in India.  Initially for first 5 years, we were busy establishing business in India and eventually started our production in the year 2006.  Luckily, the economy and the market were growing faster than our expectation and we had to expand our production capacity and the range of products within first couple of years after starting our factory.
In 2009 the Corporate Management accepted our proposal and we started exporting the products manufactured here in India to all the neighboring countries, including Middle East.
Mr. Amit: Keeping in view our global strategy for WAM Bombay, it was logical to project our company with the name of our country – India.  Therefore, changed name from WAM Bombay Bulk Handling Equipments Industry Pvt. Ltd. to WAM India Pvt. Ltd.
This proved to be a very timely and strategically appropriate decision and in the year 2011 we will be shifting to our new factory with a covered area of 12000 m2 located near Shahpur, on Bombay-Nashik Expressway.  This expansion is being managed totally with our internal funds.