Kindly brief us about Lee Spring Company and its India operations.
Lee Spring manufactures and distributes mechanical springs, wire forms, stampings, and multi-slide parts worldwide. We offer an extensive product line of more than 25,000 inventoried products in a variety of materials available in stock and ready to ship same day. In addition, we also manufacture springs made to customer specifications. Lee Spring is the premier global source for stock catalog and custom-designed mechanical springs and related products.

Founded by Robert Lee Johannsen in 1918, Lee Spring began in Brooklyn New York and our Global Headquarters is still based in Brooklyn today. Through the years, we have expanded with additional strategic locations throughout the United States, Europe, Latin America, and Asia. We are well known for our extensive and comprehensive catalog of stock springs that have been used by engineers, professionals, and buyers for decades. Beyond the catalog, we have considerable experience in design development and production support of custom spring capabilities, which comes with our many years of rich experience within the industry.

How is the mechanical springs’ market in India? Which end-user industries are driving the demand?
Mechanical springs have a ubiquitous presence in various applications, making it challenging to precisely quantify the market size. My guess is it could be well over 1000 crores. The Indian mechanical spring’s market reflects consistent growth, propelled by the expanding industrial and manufacturing sectors. Our diverse clientele spans all sectors, and our growth trajectory remains positive. While pinpointing a singular driving industry is complex, notable demand has been evident in the automotive, defense, aerospace, medical, and electrical industries, as observed during FY 22-23.

How was the performance of your India operation in FY23? What were your standout achievements in FY23?
During FY23, our India operation demonstrated exceptional performance across various metrics. One of our standout achievements was the remarkable growth in both bookings and sales. We took a proactive role in supporting several customers with their localisation initiatives, a move that not only showcased our commitment but also yielded significant results.

A noteworthy accomplishment was our robust double-digit growth in terms of sales contribution primarily stemmed from customers who sought to localise their spring sourcing instead of relying on imports from other countries. This shift not only reflected our ability to cater to evolving market trends but also underscored the trust and confidence our customers place in our capabilities.

What were the key challenges in FY23? How did you manage to grow in spite of the challenges?
In FY23, we encountered several noteworthy challenges that impacted our operations. Foremost among these were the availability of a skilled workforce and consistent access to essential raw materials. These challenges had the potential to disrupt our growth trajectory, but our proactive measures allowed us to navigate them successfully.

Recognising the potential impact of workforce shortages, we had initiated internal upskilling and cross-training programs several years ago. This strategic foresight enabled us to mitigate the effects of the skill gap and ensured that we remained well-equipped to handle the demands of our marketplace.

Regarding raw material availability, while this remained a persistent challenge, our approach was “proactive collaboration with our partners”. We closely engaged with our partners to establish effective planning mechanisms, particularly for key accounts and critical materials. By working ahead of time and strategising with our partners, we managed to secure timely access to the necessary raw materials, thus minimising disruptions to our production and sustaining our growth momentum.

What are the pain points of your customers? How do you help them to overcome some of these pain points?
Some of the commonly encountered challenges of all businesses are:

At Lee Spring we offer tangible solutions to these challenges by leveraging our strengths such as:

Lee Spring aims to be a dependable partner, not only delivering quality but also comprehensive support for customer success. By addressing these pain points using our strengths, we enhance overall experiences and outcomes.

How do you help your customers to build better equipment/machines and improve their competitiveness in the market?
We offer end-to-end solutions to our customers by our combined strengths in industry expertise, catalog offerings, customised solutions, reduced lead times, and cost-effective strategies culminating in a holistic approach that empowers customers to create exceptional equipment and machines. By choosing Lee Spring, customers aren't just accessing springs – they're tapping into a comprehensive resource that catalyses their competitiveness in the market. What is your current assessment of the Indian manufacturing industry? (In terms of challenges before the industry, growth opportunities, sub-segments within the engineering industry that are showing promising growth, etc.)

The Indian manufacturing sector faces challenges in terms of workforce skill gaps, infrastructure limitations, and technology adoption barriers. However, growth prospects are substantial due to initiatives like "Make in India," particularly in automotive, electronics, and electric vehicles. Opportunities also arise in pharmaceuticals, medical devices, renewable energy, and green technologies. Defense manufacturing, infrastructure development, and global market expansion further contribute to growth. Key sub-segments with promising potential include automotive components, electronics, pharmaceuticals, renewable energy equipment, precision engineering, and advanced materials

Are the government policies to boost the manufacturing industry's growth working on the ground? What else should the government do to propel growth?
While PLI schemes have positively impacted domestic manufacturing and investments, their scope primarily focuses on larger industries. However, for lasting growth, addressing the needs of MSMEs is crucial. Tailored support systems for MSMEs are essential. To drive progress, streamlining approvals, ensuring infrastructure access, and introducing specialised MSME programs for technology and skill development through incentives or other such incentive schemes must be prioritised by the government. These combined efforts will create an environment conducive to sustained and inclusive growth across sectors.

What kinds of trends are you seeing in the market at present? How is your company gearing up to tap these trends?
Presently, market trends reflect a shift towards sustainability, digitisation, and localisation. Our company is strategically positioned to capitalise on these trends. We're focusing on developing eco-friendly solutions, adopting advanced manufacturing technologies, and strengthening our local manufacturing capabilities. Additionally, our emphasis on R&D and collaboration with industry partners positions us to stay ahead of market demands.

What are the growth plans for your India business for FY24?
In FY24, we're committed to robust growth across our business facets. Ambitious sales targets match surging demand across diverse industrial sectors. Our growth strategy encompasses: