Suman Bose, MD & CEO, Siemens Industry Software India, details on what can be the India way of manufacturing |Â You are holding your India Manufacturing Excellence Executive forum on the eve of the Global Investors Summit (GIS) hosted by the Government of Madhya Pradesh. Tell us of this new found association with MP.
I think, geographically MP is a very strategic state and if you can develop this part, which is what the Government is trying to do, you can create a corridor of prosperity. In the north-south divide, This is one of the deprived parts of the country, which is really sad because it has immense potential. When we were approached by the government we started off by working with them by taking a very holistic view. When people talk about manufacturing all they think about is land but even if you zero in on the land, finding the right kind of resources and labour can be the most gigantic task. You have to think ahead of the cycle and this is how we plan to start off here. When we were asked to participate at the GIS, it looked an opportunity not to be missed and I must say that this state is very sincere in its efforts and is going in the right direction.
Kindly tell us in brief about the report on India’s small and medium businesses (SMBs) in the manufacturing segment that was launched at the event.
India’s small and mid-sized business segment is an industrial backbone for every economy. Siemens jointly with Zinnov conducted a study on Manufacturing Excellence for SMBs in India. There is an urgent need to achieve manufacturing excellence for long term growth. Also, with a number of large global manufacturers like Toshiba, Daimler, Harley Davidson, etc. betting big in India, we have to up the ante. Indian SMBs contribute significantly towards the economy and present huge untapped opportunities especially in manufacturing as it accounts for one of the largest share in the SMB landscape in India. The report talks of all of this and calls out the current challenges and gaps that exist in infrastructure, policy, finance, technology, R&D and skilled workforce availability.
What according to you would differentiate India from the rest of the world in terms of manufacturing?
I think what will emerge finally in a country like India is the power of the mass and youth. India has the potential to excel in engineering and design and become what China is to the world in manufacturing. To do this, we need to first identify our differentiating edge; our sweet spot. One can set up a plant in China and employ 40,000 employees. You can’t think about it in India. However, in India, in one IT facility you can have 40,000 employees.
Think about that! It is necessary for India to find its zone. I do not know where India will find its sweet spot whether in bulk or high end manufacturing. I hope the country finds it in both. I can’t believe that India will have one continuous path. We will see different industries taking different iterations. India has the world’s widest gene pool, which is currently living in this country.
And I think that the low cost medical devices will lead the way in terms of manufacturing. The sheer pressure of providing healthcare to 1.3 billion people at micro cost as compared to the West will drive a lot of innovation and precision. Thus, we will see different levels of take-off.
So what then would be the India way of manufacturing?
India is a subcontinent and not really a country, so there is no one consumption pattern. For an India way of manufacturing there are a lot of things that have to come together. The Indian way of manufacturing will become a reality depending on the kind of industry and market you are serving. I believe, India will become the innovators for low cost product not manufacturing.
I am talking of high utilitarian products that can be repaired. I think, it would be great if we lead the world on the ethos of reuse and with the concept of sustainability picking pace, we have a great opportunity solely because of the sheer demands that exist in the country. I also believe that we do not need to lead a complete product category to be seen as a manufacturer. We can manufacture small parts that ultimately go into a huge product. Thus, there will be a part of India in very product sold worldwide.