Ever since Ingersoll Rand started operating from India in 1921, it has been at the forefront of introducing various new technologies, systems and products. Excerpts from an interview with Amar Kaul Territory VP – India, Middle East and South Africa, Compression Technologies and Services.

With its emphasis on innovation to drive productivity, Ingersoll Rand India Private Limited has had many firsts to its credit. Established in 1921 in Kolkata, it was one of the first American investments in India. In 1958 the company opened a branch office in Ahmedabad and in 1963 the head office was shifted to Mumbai. It set up its first manufacturing plant in Naroda, Ahmedabad. A pioneer in bringing centrifugal technology into India, it started manufacturing CENTACS (centrifugal compressors) way back in 1989 when centrifugal technology was hardly known and accepted. In recent times, with the focus shifting to energy-efficient compressor technology, Ingersoll Rand has launched the award-winning ‘Nirvana’ energy-saving rotary compressors.

Operating out of 22 locations in the country, Ingersoll Rand India has now rolled out an aggressive growth plan, the foundation for which will be customer-driven innovation, a robust infrastructure to support after-sales services, a significant investment in the facilities to transform them into world-class manufacturing operations and a ‘customer first’ and ‘solutionising’ mindset.

What is the growth strategy that the company would like to execute over the next two years?

Ingersoll Rand is committed to India and we recently announced that the company investing Rs 100 crore to upgrade its manufacturing facility in Naroda. The transformation is in progress and the first phase of this project is completed. This strategic investment reinforces Ingersoll Rand’s overall growth strategy in India that is focused on driving innovation, technology and product development and is a reflection of its long-standing commitment to the country. Products and solutions manufactured at the Naroda plant will be distributed across both Indian and global markets. We continue to invest in customer-centric innovations and partner with our customers to make them successful in their business. The simple philosophy is that if we help our customers be successful and grow, we automatically will grow and be successful.

Is there any India-specific R&D that the company would like to talk about?

Ingersoll Rand believes that innovation for emerging economies is critical for products to succeed in these markets. It is implementing strategies for product innovation and design and has made significant investments in R&D. We run a DSR-approved laboratory in Naroda, which is benchmarked against Ingersoll Rand’s global R&D facilities on a regular basis for accuracy and consistency. We test the entire range of our products in this laboratory for its performance and reliability. In addition, we also operate engineering technology centres in Bangalore and Chennai.

We have filed several patents from India for the innovation we have made in our products and it is about our commitment to innovation. Through our R&D infrastructure in India, we have introduced several new products like Evolution™ brand contact-cooled rotary screw air compressors, new generation environment-friendly and energy-efficient refrigerated air dryers and a new platform of integrated plug-and-play centrifugal compressors, which are best in class of their own with multiple patents.

Often compressed air systems in factories and facilities are not energy-efficient. System owners have great opportunities to improve operating margins and reduce costs through energy savings. As every industry tries to cut down costs, audits of compressed air systems help in reducing hidden costs and ultimately contribute to increase in savings. Ingersoll Rand’s audit solutions offers services that help our customers identify potential leakages and take corrective actions to conserve energy. Some of the real cases after acting on actions from energy audit have had payback of less than six months after which is pure savings.

How has the ‘Make in India’ campaign impacted the company’s performance and outlook?

The ‘Make in India’ programme includes major new initiatives designed to facilitate investment, foster innovation, protect intellectual property, and build best-in-class manufacturing infrastructure. It encourages all companies whether big or small to manufacture their products in India. This campaign – together with some specific steps taken like ease of doing business, phased reduction of corporate tax from 30 per cent to 25 per cent over the next four years, reiteration of government’s resolve of rolling out GST from April 1, 2016 and reiteration of presenting the Land Acquisition Ordinance investments in infrastructure development – will boost the Indian economy.

Air compressor is an integral part of more than 90 per cent of industries and is considered the fourth utility. So, growth in manufacturing will fuel the demand of air compressors as well. The industrial air compressor industry in India has had a challenging year and was around Rs 20 billion in 2014, down 10 per cent from 2013. We expect the ‘Make in India’ initiative to make this industry worth approximately Rs 33 billion by 2019, growing at a CAGR of about 10 per cent.

Is the company optimistic about the India growth story as projected by the government?

Developed countries have taken the election of Prime Minister Narendra Modi as an opportunity to strengthen trade ties with India. Also, the new government has intensified engagement with world leaders to promote trade and investment and revive the Indian economy. If reports are to be believed, India is set to overtake China to become the world’s fastest growing major economy in the coming years. We expect the global manufacturing industry to grow faster than the overall GDP growth of the country, thanks to the ‘Make in India’.

Global investors were looking for a stable government, which can make and stand by its decisions. They were looking for leadership that promotes business and investments. I believe India has delivered on it and it should help kick-start FDI. We would expect 2016 to accelerate the pace of economic progress. The government should initiate processes and policies to reduce bureaucratic hurdles, set-up turnaround time accountability, usher in more transparency and bring required changes in laws to make it investor-friendly.

Does the company see any emerging sectors that will benefit it in the long run?

Over the past few years, we have been consistently investing in initiatives that have improved our productivity and this continues to be a journey of operational excellence. Ingersoll Rand is at the forefront of customer-centric ‘innovation’ and we are constantly innovating products and solutions that are relevant to the Indian market and our customers. To sum up, our innovative approach, customer-first and solutionising mindset has driven us into the position of market leaders. Market opportunities are governed by the mega trends that define the economic progress. Growing population and scarcity of power become the basis industries in all verticals like FMCG, F&B, pharmaceuticals, etc., and offer strong growth potential. Air compressors being one of the most ubiquitous industrial workhorses energising modern day factories, hospitals, workshops and residential complexes, their demand is expected to be recurrent.

More specifically, what will be the company’s contribution to sectors like railways, infrastructure, defence and power in the coming year?

A world without electricity is unimaginable; it touches every aspect of our life whether it is industry or the domestic world. Similarly power plants without compressed air are unimaginable. This is irrespective of the power generation approach, whether it is thermal, hydro, nuclear, and solar or wind. Compressed air is indispensable in every type of power plant. It is one of the most important and critical utility used for operating and controlling the power plant instrumentation system. It is also contributes in maintaining a pollution-free environment.

Similarly, different applications need different compressed air in railway operations. Clean, dry and pure compressed air is very important for smooth running as well as maintaining the operational efficiency of the railway system. Ingersoll Rand’s approach has been to understand requirements in terms of application, optimum and critical pressure and flow requirements, load-unload pattern, plant layout, and reliability. Our buying process study tells us that efficiency is key to any manufacturing plant as against the myth. Power saved is power sold for power plants. We design compressed air system keeping in mind continuous usage for one year without maintenance. Ingersoll Rand understands this well and offers highly reliable proven equipment with advanced system controllers.

 - HUNED CONTRACTOR