Carbide has a new name. It is called CERATIZIT. This is how the companies CERAMETAL and PLANSEE TIZIT announced their merger in November 2002. The company had entered the Indian market in 1996, through acquisition of India Hard Metals, a Shriram group company, located near Kolkata. Mr Ashwani Sareen, Managing Director, CERATIZIT & WNT India, responded to the IPF Questionnaire for this Special section on machine tools. Excerpts:

Ceratizit was formed over a decade ago when two great companies merged. What has been the experience since?

We can proudly say that the joint venture has been a resounding success. Both the companies have merged seamlessly. Post-merger the company has grown rapidly.

From wood to stone and metals, the Ceratizit range covers most materials. But what is the core competency of the company?

The core competency of the company is the expertise to produce 'Hard Material'. The different product ranges are an extension of the primary core competence.

Having entered India in the post liberalised era through an acquisition, what has been the experience so far?

The experience is extremely positive. Our decision to set up one more plant and a bigger one is confirmation of this fact.

The recent expansion is indication enough of the importance of the Indian market. What percentage of production is exported from India? Also there must be some imports as well?

Presently, the exports are low as our capacity is well utilized for the domestic market. Our objective of increasing exports is one of the reasons for setting up the new production facility with higher capacity.

The company is operating in a fiercely competitive sector. So how does it fare in the market share stakes? What edge does it have over the competition?

Presently, we have the fifth largest share in the Indian cutting tools market. Domestic production gives us the flexibility to respond to customer requirements faster.

What are the current trends in materials used, especially with the demand of lighter materials and composites finding new applications?

No doubt newer materials are being used more and more. However, the demand for Tungsten Carbide will remain stable in the foreseeable future.

How widespread is the marketing network in India? And participation in trade events?

We have our presence in all the geographical locations where there is demand for cutting tools. To strengthen the CERATIZIT brand, we participate in all important exhibitions on a regular basis.

Any breakthrough product that made a significant impact?

Our 16-edge milling system A273 has outperformed competitor's product by a big margin and has given us a great competitive advantage.

While the present expansion takes care of the short term, how do you see the future for the company as well as the industry?

Industry is expected to grow @10% CAGR. Our new plant capacity will be adequate for the next 10 years at least.

Ceratizit Grows, Sets Up 2nd Unit in India

In April 2013, Ceratizit India set up a second production unit at Uluberia Industrial Area near Kolkata, to cater to the demand from Indian and other Asian markets. The inauguration ceremony was attended by Mr Gaston Stronck, Ambassador of Luxembourg to India, Mr Ashwani Sareen, Managing Director, CERATIZIT India Pvt Ltd, as well as the Representative for the Executive Board Jacques Lanners and Executive Board member Mr Thierry Wolter. Ceratizit India, a significant player in the Indian market has already been manufacturing hard metal products in Bengal for 17 years. The company has become an integral part of the global production and is now responsible for the supply of cutting tools for the entire Asian region. Hence, it intends to expand its business to meet the demand and supply of cutting tools with the recently acquired Plant in Uluberia Industrial Area. The new production unit is spread over 6.2 acres of land with the production capacity expected to increase three times compared to the present unit at Barisha. The expansion would also lead to creating job opportunities for 200 people and projected to generate revenue of Rs 150 to 200 crore in the next couple of years. Besides the domestic market which has grown by 9 to 10% at a compounded annual rate, Ceratizit will serve the market in China in addition to all major Asian markets like Taiwan, Korea, Thailand and Malaysia. The biggest user industries for cutting tools include automotive, aerospace, railways, power and defence. Speaking on the occasion, Mr Thierry Wolter, Member of the Executive Board of CERATIZIT S. A, had said. "To meet the increasing demand of cutting tools in Asia, this continuous expansion and strengthening of our activities in the important Indian market is key to our success."