India is well poised to become the world’s fifth largest manufacturer by 2020, says P L Muthusekkar, Managing Director, NORD Drivesystems Pvt Ltd - a leader in drive technology. But to reach there, Indian manufacturers will have to adopt new technologies and ensure manufacturing processes are smarter.

How do you view the present status of India’s manufacturing sector?

Impetus has been given now to this sector which was not receiving the attention as required earlier. Like services sector, there is plenty of scope in manufacturing and will give the employment boost as it is the need of hour. This is just the tip of iceberg, continuous focus and creating Brand India - BIS standards for our products and enhancing exports must be the ultimate goal. Also, we need to adopt Industry 4.0 and ensure manufacturing processes are smarter.

What has been the effect of “Make in India” campaign and other government initiatives on the manufacturing sector?

Make in India is one of the best initiatives by the present Government. The pace at which it moves is worrisome. More efforts and consistent approach by supporting MSMEs and large industries is required. At the same time, necessary R&D and testing centers need to be created across the country. Creating India brand and India work culture are associated with Make in India. It is perineal problem, we directly migrated from agriculture economy to high end IT engineering services economy. Now more focus is given on manufacturing which is in the right direction. 

Could you share your experience of doing business in India as the head of Indian operation of NORD Drivesystems - a global leader in drive technology?

Few years ago we even thought of closing down the operations, if the tax authorities’ flawed approach continued.

Now, doing business in India has certainly improved from 4-5 points to 6-7 on a 10-point scale. Many online and transparent ways of registering, interactions or payments made to Government is a welcome move. More such seamless activities will help to focus more on core of business rather spending on bureaucracy.

Are you seeing an increase in demand for drive technology in India?

Certainly yes, and more energy saving and automation will be the drivers. As our products are Industry 4.0 ready and highly energy efficient, they fulfill the need. Already we have seen the demands rising in construction, infrastructure, material handling, etc. We are quite positive about warehouse and logistics. In general, drives go into many sectors and if the organisation is dynamic and adaptable quickly to the market changes will be able to make full use of it. Nord is geared up to meet the demand.

What are the challenges & opportunities for manufacturing companies in India?

Cost pressure is an oblivious challenge as we are operating in a cost conscious customer market. We need to manage the inflation and currency volatility. Euro to INR in last one year the raise is 14% - this is huge to sustain itself forget about overcoming. There are still some issues with respect to GST that are yet to be resolved. Manufacturing sector is yet to achieve sustainable growth.

Growth opportunities are not just in India but also in neighboring countries. There has been an overall growth which opens up new segments and sectors. One classic example is the airports expansion both new & old. Which country in the world will have so many new airports coming up and existing being expanded at the same time? This can happen only in India. 

Outlook for Indian manufacturing sector…

Manufacturing had not had its right perspective. Coming years will demand that manufacturing plays a crucial role with new technologies. India is well poised to become the world’s fifth largest manufacturer by 2020.