Such has been the strong first-mover advantage enjoyed by Pune's V R Coatings in the manufacturing of spray painting equipment that even foreign brands have often found it difficult to cut into its pie, says Huned Contractor. A manufacturer of spray and dispensing equipment for a wide range of fluids, both liquid as well as semi-solids, Pune-based V R Coatings (P) Ltd has held a domineering position in the Indian market with its unique applications developed for paints, sealants, adhesives, wax, oils, grease, solvents, etc. The reason why even MNCs have not been able to create a dent in the company's status is, as its managing director, Vincent D'Souza, puts it is that it has always been at the forefront of adapting indigenous technology to suit the requirements of its customers. In this interview, D'Souza elaborates on the company's philosophy and future plans. Excerpts:

How did the company come into being?

It was an entrepreneurial effort by me in 1985 after I had worked for a few years with Statfield Equipments, a company that developed solutions for painting requirements. We began with a powder coating unit and our first job was for Tata Motors. In fact, we were the pioneers of job working for powder coating for the automotive industry in Pune and it took quite some time for the business to get started. With experience and time, we started making spray painting machines, especially for painting sealant applications for Tata Motors. Over the years, we have specialised in automation in spray painting for tube coatings and railway coach painting solutions, etc. I would say that airless spray painting is our domain expertise.

What new technologies has the company developed in recent times?

One of our most recent developments has been the grease dosing application for bearings and hubs. This is for medium to high viscosity sticky materials which do not flow well on their own such as thick grease, lubricants, adhesives, sealants, silicons, plastics, caulks and pastes. This is a PLC-based system and it can be fitted with dispensing or spraying nozzles to suit precise applications. The biggest benefit is that there is 100 per cent utilisation of grease so that it cuts down on maintenance costs. Yet another recent development is a marking system for the tyre industry that allows for fast, accurate, clear and distinct paint marking with the facility of a number of colour combinations and sizes.

Which are the industrial sectors that your products reach out to?

We supply our equipment to various sectors such as automotive, aeronautics, railways, naval shipbuilding and dockyards, infrastructure, furniture, food, pharmaceuticals, heavy engineering, containers, tyres and castings, among others.

Do you emphasize on continuous research and development?

We take pride in the fact that at V R Coatings it is technology that drives our business. We have never copied the designs of our competitors which include some of the biggest names in the global spray painting equipment sector such as Graco or Wagner. In fact, our USP is that we have been able to create perfectly customised solutions for our clients on the strength of our design expertise, always looking for new approaches to improving the products. It is this emphasis on technology that has created a strong branding for us in both domestic and international markets. In some countries we have been able to sell our products at a price higher than those of the globally known brands because of the quality of our equipment.

What about collaborations and tie-ups with foreign companies?

We have not entered into any joint venture for product manufacturing or technology with any foreign company. But yes, our equipment is bought by OEMs in some countries where it is marketed under their own brand.

What is the installed capacity of your plant?

We can make up to 1,500 pumps a year. And we may ramp up the capacity after a couple of years once we are able to acquire a new parcel of land.

What about exports?

About 40 per cent of our pumps are sold in the foreign markets such as the Europe, UAE, Iran, South America, South Africa, Far East Africa, etc. We are now planning to increase this to about 50 per cent in the coming two to three years.

How has the Indian paint industry benefited your company?

Ever since the markets were liberalised, the Indian paint industry began to grow at an astounding rate. And this was not only in the decorative home paint segment but also in industrial paints. Therefore, the demand for sophisticated paints began to grow and this, but naturally, opened up new avenues for us. I would say it was just pure luck or coincidence that we entered this business at the same time as the paint industry opened up in India. Elsewhere, the fact that India began to develop a hub for the automotive sector contributed a lot to our bottomline. We are now a major supplier to most of the automotive OEMs in the country such as Bajaj Auto, Mahindra & Mahindra, Honda Motors, Ford, etc., and about 35 per cent of the orders come in from this sector.

What's your expansion plan for 2013-14?

There is nothing as immediate as that but we are on the lookout for land in a SEZ to set up an additional plant. Once we acquire that, we will set up new machines. This investment would be to the tune of about Rs 5 crore.

Do you face any particular challenges in this business?

The biggest challenge that the industry in India faces is that we are not a technology-oriented country. Elsewhere, such as in the US or the UK, the focus is always on pushing the boundaries of technology. What we do here is to wait for them to develop new technologies and then merely replicate them. For example, the whole transition from video cassettes to DVDs and now pen drives happened in the US because of their constant push to taking things to a higher and better level. There the universities also play a very collaborative part in developing new technologies with the support of the industry. That's something which is sorely lacking here. As such, I would personally like to set up an R&D or technology centre for V R Coatings in maybe Germany or UK where a dedicated team will work on creating technologies of the future.

Are the government policies in favour of your line of business?

I have never had much faith in the so-called government policies which offer subsidies, tax benefits, and so on. It doesn't really benefit my business or the sector I operate in.