Magal Engineering's JV with LVD of Belgium, now with a majority stake acquired by the overseas partner, will be known as LVD-Strippit India and aims to be part of the India growth story

The journey of LVD-Strippit India is linked to the history of Magal Engineering, the Bangalore-based company that was started by a first generation entrepreneur M K Narasinga Rao in 1992. Working for Godrej & Boyce, Mr Rao wanted to be on his own. Gaining experience in the sheet metal working industry, he started Magal Engineering as a representative of a few foreign brands of machines. The product portfolio comprised machines like press brakes, shears and more. By the year 1999, the company grew to record a turnover of Rs 60 million, and a client list amounting to 240. Working on the principles of technology proficiency, honest dealings and conscientious customer service, the company achieved a turnover of Rs 400 mn in the financial year 2004-05. The client list had grown to 300. In the year 2005, the company started representing LVD in India, by forming a joint venture, Magal LVD, inked in 2008. On April 1, 2013, LVD bought a majority stake in this joint venture and the name was subsequently changed to LVD Strippit India. With Mr Rao as the managing director of the company, LVD, a family owned company from Belgium, is keen to endorse its commitment for the Indian market, as this hike in its investment in India demonstrates.

Refusing to reveal the nature of LVD's investment in India, Mr Rao, speaking to Industrial Products Finder in Mumbai, announced that his company is setting up a Technology Centre at Bangalore. Scheduled to start operations by June 1, 2013, the centre will have two engineers, and would function as an application centre as well as a demo centre. According to Mr Rao, existing as well as potential clients will be able to have a demo of the machines the company offers. Operating in a very competitive industry space that spans across various sectors like infrastructure, yellow goods, white goods, automotive, textile, and more, LVD-Strippit, said Matthew Fowles, Group Marketing Manager, LVD Company nv, will be leveraging Narasinga Rao's knowledge. "Our actions will reflect our commitment to the Indian market in the coming times," he further said. Apart from the Technology Centre, LVD-Strippit India will also get a Belgian engineer. The engineer, shared by LVD's operations in Korea, will train and sharpen the skill sets of the Indian team. Operating in the area of high value machines, the support of Belgian engineer is highly appreciated according to Mr Rao. It is also a part of LVD's commitment to the Indian market. Having installed 170 machines till date in India, the economic situation in India has had an impact on this company too. Acknowledging that currency fluctuation hurt the business, and also the government policies, Mr Rao averred, "We had to scale back our projects by a year." While he touched upon some positive movement being noticed in the last three months, Mr Fowles opined that they had good business in Europe. "We have done very well in Europe", he remarked further.

Optimistic that growth is returning, Mr Rao expressed that the challenges in the recent times have led buyers to be more selective in what they want. "They want machines that are suitable for the job, no more and no less". "This has only helped us. Our strategy to help the client choose the machine, or a solution that best addresses his needs is paying off." To address the challenge of buyers increasingly looking for machines that are best suited for the job at hand, LVD-Strippit India, has responded by introducing a fibre laser machine in India. Offering a wide range of products, the portfolio of the company also includes a different range of laser machines. Known as the best manufacturer of press brake the world over, LVD has also earned a reputation for laser cutting machines of higher thickness and longer dimensions. The Belgian company, according to Mr Fowles, made its first laser machine 20 years ago. A 60 -year- old company, LVD in India is projecting a growth of 20% this fiscal, a remarkable display of optimism in the India growth story.