“Legal compliance is a big challenge”
With growth in power industry due to ambitious Government policies, Chandmal Goliya, Managing Director, Kusam Electrical Industries Ltd, sheds light on how SMEs are coping with the new policies and laws.
How do you cater to the Indian Electrical & Electronics (E&E) sector?
Kusum-meco is a 35 year old company for digital test & measuring instruments. Kusum-meco offers wide range of over 200 products to cover every requirement of Industry. Our products range covers high safety UL approved digital multimeters, professional grade digital multimeters, basic digital multimeters, ICR meters, high safety UL approved digital clampmeters, professional & industrial-grade digital clampmeters, insulation resistance testers, earth resistance testers, high voltage measuring instruments, test & measuring instruments, laboratory instruments, environmental testing instruments, waterproof pen testers, cable fault pre-locator, portable thermal imaging camera, power measurement clampmeters, power measurement & control instruments, power transducers, signal transmitters, programmable digital panel meter, calibrators, gas detectors etc. We have a large network of distributors & dealers all over the country through which our products are supplied. Kusum-meco also offers many products on various online sites so that buyers located anywhere in India can procure the goods directly. Some buyers are located in remote areas also can get goods at their homes. Besides, Kusum-meco participates in around eight exhibitions in a year, spread across the country. This creates an awareness of our products with the customers. We also organise seminars at various customer places to educate them of the latest products available from our company.
What is your opinion about Budget 2019-20 (presented on 5 July 2019)? What are the hits & misses of the budget? Will it help your industry?
The budget presented by Honourable Finance Minister in July 2019 was a very progressive budget. Although many details & fine prints have to be understood carefully in details, due to the emphasis on various development projects, it will give a boost to the Industry. Since electrical power is a significant necessity of daily life, it will help our Industry in a big way. It will lead to new requirements also.
GST has completed two years. How has GST affected your sector? For the benefit of the industry, what are your suggestions to the GST Council?
GST has simplified many processes by combining a host of different taxes into one tax, GST. Hence it has eased the working of the Industry. However, on the other side due to various compliances required under the GST Act & penalties for late submission of documents has dampened the enthusiasm of the Industry. The need is for simplifying the act, for easy compliance. Moreover the responsibility of the payment of the GST to the government should be strictly on the person who has collected the tax & not the person who has purchased the goods and paid the tax to the seller.
Have you noted a rise in demand for your products in the last few years?
Due to the increase in power generation, the demand for good quality test & measuring instruments has grown rapidly. We experienced an increase in demand by about 25 per cent over the last year.
Demand for electricity is growing in the country. How is this leading to growth in demand for your products?
The demand for electricity is growing rapidly. This leads to increase in generation, transmission & distribution of electricity. It also leads to growth in the demand for various products related to the industry which are consuming power. For maintaining the various equipments which operates on electricity, it is essential to have good quality test & measuring instruments. Thus, it will lead to increase in the demand for our products.
What are the challenges faced by manufacturers like you?
Legal compliance is a big challenge. Multiple taxes, compliances of the rules & regulations of government, also lack of skilled manpower are factors causing hindrance for faster growth of industry. We suggest that government should simplify the laws, so that even SME manufacturers can understand the same & implement them without relying on lawyers and other professionals. Presently almost 30-40 per cent of the time of SME manufacturers is spent in unproductive work of complying with the laws.
What are the latest trends in your sector?
The latest trends in our sector is to provide more & more functions compacted in one instrument, so that the user does not have to carry many instruments for the testing purposes. Also new technologies demand measurement of complex functions and this leads to manufacture of newer products.
Level of automation is increasing across the industries. How do you see this trend?
As automation is increasing across the industry, it gives rise to new requirements for manufacturing & maintenance of these products & for their maintenance & manufacturing, the demand for electrical & electronic instruments increases.
How real is the threat of imports for your sector? Are imports from China still growing? How can we overcome this threat?
For the electrical sector the threat is from cheap or low quality products which are imported. Due to the competitive prices by Chinese manufacturers, the imports are increasing and unless there is a proper level playing ground it is not possible to overcome the threat. Moreover, due to the worsening trade relationship between USA & China, China is looking ahead to forward these products in India in a much serious enthusiasm..
What are your growth plans for the company?
Our company is committed to provide high quality products that satisfy customer’s requirement at reasonable and rational price. We will continue to pursue this policy for the benefits of our customer.