Ready for the transition

June 30, 2015 2:57 pm

When it comes to automobile and its components, India is well positioned to strengthen and expand its position as a global auto hub.
Ameer Ahamed Munaff Managing Director, FEIN Power Tools India Pvt. Ltd.
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 GST introduction will be the biggest contributor to ‘Make in India’ initiative.
FEIN India, belonging to the machine and power tools category and being a supplier of power tools to the metal, automobile and other manufacturing industries, sees this ‘Make in India’ campaign as a much needed intervention from the government to boost the GDP in the manufacturing sector.
Commenting on the ‘Make in India’ initiative as far as machine and power tools industry is concerned, Ameer Ahamed Munaff, Managing Director, FEIN Power Tools India Pvt. Ltd. says “The overall outlook is positive, with leaders across the industry expressing confidence in this economic revival through this campaign. FEIN products are manufactured completely in Germany hence this campaign does not impact us directly, but indirectly we are expecting a good growth as our tools are widely used in the manufacturing industries which will create a demand for our machines when the industry picks up growth.”
India is the seventh largest producer of automobiles in the world with an average annual production of 17.5 million vehicles from 4 large auto manufacturing hubs across the country. “Now that more such hubs are in the planning stage and FEIN power tools having a good patronage for fastening tools in the assembly line production in the automotive sector, we are set to use this pace to push automotive range of tools,” Mr Munaff says. “When it comes to automobile and its components, India is well positioned to strengthen and expand its position as a global auto hub given that India has all of the major ingredients like steel and other non-ferrous metals required for manufacturing automobiles.”
Road to success“Make in India” campaign has all potential to be a successful long-term plan for growth, yet the strategy, while commendable, is not easy to achieve as the world is fast changing with the imbalance in the manufacturing between the developing and the developed countries that is leading to changing economies, observes Mr Munaff. While continuous change in wages, energy costs and productivity are shifting the global standings on cost competitiveness, factors other than cost are becoming more and more important for companies to decide the location for sourcing and manufacturing. China is facing with its rising wages and increasing cost of production which might lead them in to losing its battle over cost advantage. The European market on the other hand is subduing their share of the global manufacturing by giving a tough competition in terms of cost and beating other players over quality. India, in this competitive global environment is starting from scratch, where, even its peers like Indonesia and Malaysia are performing fairly better.

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