India has set an ambitious target to enhance the manufacturing output contribution to 25 per cent of GDP by 2025. To achieve this goal, the Government launched Make in India initiative in 2015 by turning India into a manufacturing, design, and innovation hub. However, the country is still far away from its target as there are several hurdles on the way. There are several challenges before the manufacturing sector such as increasing regulation and compliance measures, skill gap, environmental concerns, etc, says Bijay Nayak, Managing Director of Uttam Technologies India Pvt Ltd and Parson Adhesives India Pvt Ltd - a JV between Uttam Technologies and the US-based Parson Adhesives Inc, a leading manufacturer of wide range of industrial adhesives such as anaerobic adhesives, cyanoacrylate adhesives, epoxy & polyurethane adhesives, methacrylate adhesives, uv curable adhesives, silicone sealants etc. In this interview with Rakesh Rao, Bijay Nayak explains in detail various factors that are putting roadblocks on India’s growth path and also share some of the effective strategies to be adopted by Indian manufacturers to maintain their competitive-edge.
What kind of products and services are offered by your company?
Parson Adhesives India Private Limited is a subsidiary of Parson Adhesives Inc, USA. Parson Adhesives is one of the leading manufacturers of wide range of high performance engineering and structural adhesives and sealants. Parson range of adhesives are currently used by many of large companies in USA, Germany, France, Italy, UK, Turkey, Brazil, Mexico, China, Taiwan and India; having presence in 54 countries.
Parson Adhesives is one among few companies who has different types of high performance engineering and structural adhesive technologies.
Those are anaerobic, cyanoacrylate, acrylic & methacrylate, epoxy, polyurethane, UV curable adhesives, silicone and special polymer based sealants. Our research scientists work tirelessly for evolving newer products to meet application challenges. Looking beyond the future, our technical team works continuously to produce innovative adhesive products to meet wide range of applications. Efforts still continue to develop new polymers to exceed the ever-increasing requirements of market developments in exotic new materials.
Parson Adhesives is growing globally and in India increasing presence in various industrial segments and application every year. Parson’s R&D team is involved in developing different adhesives and sealants solutions for industries after identifying their concern areas.
What is the present status of manufacturing sector in India?
The growth of the manufacturing sector is not that encouraging. Though the annual growth is around 14 per cent, the quarterly growth remains inconsistent as the industrial production index remains generally low. Due to low manufacturing growth, the country faces high rate of unemployment.
What are key challenges before manufacturers in India?
There are several challenges before the manufacturing sector. The manufacturing sector is facing increasing regulation and compliance measures. Besides, product development, innovation, skill gap, environmental concerns and issues etc. are some of the major challenges that need to be addressed to ensure a robust manufacturing sector.
What, according to you, should be the "Winner strategies" that Indian manufacturers need to adopt for business success?
Major manufacturing units in the country especially in handloom and textiles, power, leather, food processing etc. face acute sickness and unemployment. As these units are the mainstay of the manufacturing sector, the revival of the same need urgent attention and appropriate strategy for restoring them to sound health. Besides, competition and cost are the key issues to be noted.
Could you please highlight some of the strategies that you have adopted for your company to make it successful?
Parson Adhesives always work very closely with every client demonstrating all advantages of products. And, major advantages passed-on to customers are value benefits, cost benefits, and price benefits.Advantages offered are increase product performance, increase design flexibility, increase product quality, enhance product aesthetics, and improve process productivity and reduce manufacturing costs.
What are the strengths of India which can be leveraged to attract global manufacturers?
India is taking a lead role in the field of digital technology. We have the distinction of being the largest IT personnel in the world. The present government has been playing a key role in giving a thrust to new technologies, indigenous and foreign technology. This strategy would go a long way in giving a boost to IT and digital technology sectors.
What policy changes are needed to make India a manufacturing hub?
India’s share in the world trade is not up to mark when compared with emerging economies like China. Due to lower growth and competitive disadvantages India’s manufacturing sector faces major challenges. Of late, in the ease of doing business India has notched huge leap forward. This may come to our aid so far as FDI is concerned. Several redundant laws have been scraped and recast in tune with the present situation. These may come to the competitiveness of the Indian industry vis-à-vis global chains.
How important is to invest in R&D to make India a hub for manufacturing?
There is no second opinion on R&D as key to any development. Apart from product developments, R&D plays its part in storage and warehousing. As an agrarian economy, R&D should take care of these key areas. The government and private funding can ensure fast track developments in this area.
What is the relevance of SMEs in making India a global manufacturing hub?
SMEs have been playing a key role in the development of the country. Apart from employment and contribution to export sector SMEs meet the local needs in myriad ways. However, this sector faces several problems. Right from credit to marketing they face constant problems. Also they need support from the government for purchases of their products. Regular follow-up of the problems on credit front, R&D, marketing, etc can ensure better health to SMEs.
External environment for trade is still challenging. What steps need to be taken by India (by the government as well as industries) to boost exports?
In an inter-dependent world nothing is certain. Waves and ebb are often the truth. The country should be resilient enough to absorb the external shock and push ahead as India did in 2008. Pragmatic policies and vision as also political leadership with stability help in this direction. External shock should not weaken us rather it should embolden the nation to search for new ways and methods to address the issues.
Why it is important to opt for "eco-friendly" or "sustainable processes" for long-term economic benefit?
Development with ecological balance is very essential as ecological turmoil often details the economic and social fabric of the country. India plays a key role in the field of renewable energy. The global solar summit in New Delhi was one of the greatest initiatives by our PM. Climate changes and their challenges are to be tackled country-wide as also globally unitedly.
Which is better strategy - "Make in India" (ie, produce in India for global markets) or "Made for India" (ie, make products for India) or mix to both?
The focus of Make in India programme is on 25 sectors. These include: automobiles, aviation, chemicals, IT & BPM, pharmaceuticals, construction, defence manufacturing, electrical machinery, food processing, textiles and garments, ports, leather, media and entertainment, wellness, mining, tourism and hospitality, railways etc. Views are quite divided as to which one is preferable for India – Make in India or Made for India. Both the concepts have their relevance for a country of India’s dimension and diversity. We need huge and myriad production base for the country’s burgeoning demand as also for export. China has been growing at a faster pace, thanks to export led growth. Hence both the approaches are complementary, not competitive.