Vivek Nanivadekar, Executive Director, FIBRO India Precision Products Pvt. Ltd.

Q. Can you tell us about your company?
FIBRO India, a 100% subsidiary of FIBRO GmbH, was established in 2008. Initially, our company operated from a rented space, but, in 2013, we acquired our own premises to work from. In 2017, we expanded to incorporate our second phase of operations, which included manufacturing rotary tables for the automation industry. Over
the years, we added newer products to our manufacturing list depending on the domestic as well as international markets’ demands. Staying in line with our company’s motto, FIBRO India focuses on producing quality products
with ‘German Precision, Crafted in India’. Our headquarters in Germany offers us all the encouragement and technical support we need in order to do so.

Q. The pandemic has affected businesses globally. How is FIBRO India dealing with the current business environment?
Everything was going well till 2018. However, in 2019, owing to various factors, the global economy began to witness a decline in growth. And, the COVID-19 outbreak, only worsened the scenario. The world is already facing the consequences of the pandemic. Fortunately, for us, we had already started re-strategising our business plans from 2019 itself. For instance, we decided to focus on e-commerce and developed our webshop to help customers place their orders from anywhere. We also started capitalising on digital marketing to grow our presence on social media and conduct webinars to educate customers on our new offerings. Additionally, we began developing products required by the market but were not made in India.
These strategies proved very beneficial during the lockdown. The webinars on our new product offerings received an overwhelming response. We started receiving orders for those products as soon as the industry resumed operations. We then took up similar products for development to expand our range of offerings. In fact, we recently launched our new Aerial CAM unit on the digital platform.
For the time being, we put on hold our investment plans and instead of buying machinery and equipment to manufacture some components in-house, we have asked our vendors to supply those critical components to us.
Also, many companies have been downsizing their staff, but FIBRO India has not done so. Rather, we are looking to equip our company with additional talented employees.

Q. What lessons has the lockdown taught you?
The most important lesson we learnt is that except manufacturing, most other operational functions such as sales and marketing, purchase, and accounts design, among others, can be performed on the digital platform without being present in the office/factory premises. And now, with the ‘Smart Factory’ in place, manufacturing operations can be held on the shop floor with a minimum physical presence. In fact, post COVID-19, this is going to be the new normal for the manufacturing industry, apart from the use of masks, sanitizers, and maintaining social distancing. A lot is already beginning to change. Even many MSMEs, which were reluctant to adopt automation, are turning to low-cost automation solutions to deal with the situation.

Q. Do you have any suggestions for the government to help the economy revive?
The government is already taking commendable steps to support the MSME sector. For starters, it has redefined the criteria for MSMEs—a move that will help many borderline industries expand. The government has also directed banks to extend the credit limits without asking for additional documentation. Economists have estimated that it would take a couple of years to reach the pre-COVID economic status, but with the current tempo, the Indian engineering industry might arrive at that point in less than six months.

Q. COVID-19 has adversely impacted the global supply chain. Businesses across the world are struggling to get on track. How could India rise up to the challenge?
The pandemic has certainly disrupted the flow of the global supply chain. Its impact on the manufacturing sector is clearly evident. But, on a brighter note, it has also opened doors for our local industries to develop. India will face new challenges, but we have to work towards overcoming them to make ‘Atmanirbhar Bharat’ a reality. It will take some time for the ‘Vocal for Local’ initiative to materialise, but, once it does, it will see the rise of start-ups contributing manifold to the economy and result in the creation of many more employment opportunities.
As a step in this direction, the government has already undertaken initiatives to cut red tape by making most of the processes online. This has ensured that MSME owners do not end up wasting time visiting government offices for sanctions.
As per the ‘Doing Business’ 2020 report, India jumped 14 places to the 63rd position in the ease of doing business rankings. This certainly indicates that India is able to attract FDI in the manufacturing sector. But this is only one side of the coin. The government still has to tackle major roadblocks such as equipping the country with skilled manpower, infrastructure, uninterrupted stabilised power supply, roadways, seaways and airports, etc. It has already taken up the implementation projects in roadways and development of ports, but it will take a few more years for it to complete. The roadmap for India to become the global manufacturing hub is already set.

Q. What can Indian tool makers learn from the current scenario?
Indian tool makers have a lot to learn. The most important lesson is that tool makers need to train the young aspiring tool makers the tricks of the smart manufacturing trade. Tool making is one of the most creative fields and should be able to attract young talent.
Recently, I read a newspaper report which stated that more than 30% seats in engineering colleges are vacant. This indicates that there are no jobs for engineers and hence, it is no more as lucrative a career option as it used to be. It is a simple demand and supply equation. There is more supply of engineers but not much demand for them.
The quality of education is another big issue. The government has already announced a new education policy to be implemented from 2022. This means that it will take at least 10 years for quality engineering graduates in all disciplines to be made available for the industry. But, better late than never. So, for now, it’s best that every industry trains their workers/ engineers and staff for at least 6 to 12 months before they are expected to start delivering results.

Q. How do you foresee the future of Indian manufacturing industry?
As per the fourth census of MSMEs report published in 2012, MSMEs are the second largest employers after agriculture, accounting for 72% services and 28% manufacturing jobs. They also account for 45% of total industrial production, 40% of total exports and significantly contribute to the GDP. I believe some good incentives like low-cost finance, increased duty drawback, etc., would certainly make MSMEs more cost competitive and help them compete with other countries like Vietnam, Indonesia, and China in the international market.
Considering the current international economic and political situation, multinationals are planning to set up multiple manufacturing locations in different countries so that their businesses remain unaffected. As such, they would establish a supply chain in different countries. India can certainly take advantage of this situation.

This interview was first published in TAGMA Times newsletter 

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