search - investment destination - aurangabad - supplement - june 2012

ote this: Audi invests €10 million to scale up capacity at its facility by 50%; Perkins India, a wholly owned subsidiary of Caterpillar Inc, headquartered in Peterborough, UK, is investing `780 crore to set up a greenfield facility to manufacture diesel and gas engines; Greaves Cotton is setting up a new engine manufacturing unit with an investment of `50 crore; Siemens is investing `250 million (`25 crore) in a greenfield high voltage instrument transformer factory; Endress+Hauser is setting up production facilities for level, pressure

and flow measurement engineering equipment with an investment of €19 million; Varroc Group is pumping `150 crore for its new plant to produce front axle beams and crankshafts; Hindalco-Almex Aerospace is setting up a state-of-the-art plant to manufacture hard aluminium alloy billets and slabs…Aurangabad is almost becoming the magnet for manufacturers!

While multinationals are making their presence felt, the proposed Marathwada Auto Cluster Project, with an investment of around `80+ crore in the region will act as an enabler for SMEs. The state-of-the-art product and process development facility will immensely help SMEs to upgrade themselves to the world standards given the fact that individually they will not be able to invest so much on the product and process development. That’s a big plus for the region, as thriving SMEs add to the region’s inclusive growth advantage.

Another shining example is the fact that the five-star industrial estate, Shendra, is part of the development map, as it has been identified as the project location for the Japanese Smart Communities or Eco City project. Shendra, near Aurangabad, will get a rare recognition as it has been chosen by the Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) among the other two cities—one in Haryana and the other in Gujarat. The project envisages the introduction of new innovative technologies through Smart Communities to achieve sustainable development and improve the quality of life.

With so much happening, the journey of transformation for Aurangabad from being a developing region to becoming a matured industrial base was swift. The city contributes `7,000 crore to the government’s kitty, which includes the taxes and the earnings. Almost 70% of Marathwada’s industrialisation has happened in Aurangabad. This is the reason why Aurangabad and the regions in and around it not only add to the economy of Aurangabad, but also contribute to the GDP of India. With Aurangabad brimming with growth, positivities and potential, here’s presenting an exclusive content spread towards garnering more growth for the region!

NTHE AURA OF AURANGABAD

Archana [email protected]

Opinions & MoreEDITORIAL3

CONTENTS

CNC MARKETOffering Manufacturers A Cutting Edge

8

AURANGABAD HIGHLIGHTS10

STRONGHOLD OF MAHARASHTRAThe Economic Powerhouse Of Maharashtra

12

INSPIRING EXCELLENCE Perseverance Breeds Success

14

INVESTMENTSThe Rising Industrial Giant

16

PRODUCT UPDATE30

‘Aurangabad Has A Fighting Spirit’Parvesh Batra,President of Aurangabad Industrial Suppliers Association (AISA)

22

‘Matured Industrialisation Has Taken Aurangabad To New Heights’Mukund Kulkarni,President, Chamber of Marathwada Industries and Agriculture (CMIA)

23

‘Aurangabad Has Now Emerged As One Of The Finest Machining Hubs’Jayant Soni,MD, Akshay Industrial Enterprises Pvt Ltd

24

‘Aurangabad Will Continue Its Journey Towards Rapid Growth’Shirish Tambe,GM, Osborn Lippert India Pvt Ltd

25

‘Aurangabad Has Ample Potential To Grow Further’B Ravindra Naidu,Joint- President, Birla PrecisionTechnologies Limited

26

‘Looking At Where Things Stand Currently, The Sky Looks Bright For Aurangabad’Avinash Vishwasrao Chavan,Founder, Swajit Abrasives Pvt Ltd

27

‘Aurangabad Will Truly Emerge Once The Delhi-Mumbai Industrial Corridor Is Ready’Sudipto Mukherjee,GM-Marketing, Lombardini-Kohler

28

ADVERTISERS’ & PRODUCT INDEXAlphabetical Listing Of Products Presented In The Issue

34

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18

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8 CNC MARKET SEARCH - Supplement June 2012

he advent of the

automotive industry has

created manifold growth

prospects for industries

in Aurangabad. And

the influx of industries, such as

heavy engineering and FMCG, are

further fuelling the demand for niche

segments, such as machine tools, in

and around the region. Aurangabad

is said to have around 2,000 CNC

machines—the dominant users mainly

being players in the automotive

industry. Based on the current trends

and emerging demands, the CNC

machines segment is emerging as a

key driver of growth for industries in

Aurangabad.

According to B Ravindra Naidu,

Joint President, Birla Precision

Technologies Ltd, “Nowadays, CNC

machining has become the most

crucial element, considering the high

precision involved in the production

process and the kind of accuracy

desired by the customer. Though in

the start, it seemed a little expensive,

but going by the returns you get in the

long term, it is worth investing in such

precision machine tools.”

Parvesh Batra, President,

Aurangabad Industrial Suppliers

Association (AISA), says, “We all

agree to the fact that when there are

tremendous opportunities waiting

to be tapped, innovative methods to

enhance productivity are bound to take

centre stage. The deployment of CNC

machines is among one of those crucial

factors for ensuring the same.

THE GROWTH BANDWAGONAchievement of higher growth and

increased share of CNC machines

in the overall output surmises the

commitment to provide competitive

manufacturing solutions, and, that

too, at cost-effective prices. In terms

of key product segments, high growth

areas for CNC machining include

turning centres, machining centres and

grinding machines, among others.

Lathe machines, router machines,

foam cutting machines and CNC

machines, catering to surface finishing

and grinding, have been doing the

rounds in Aurangabad manufacturing

units since the last few years. To this,

Milind Umadikar, Owner, Mechatron,

adds, “Auto forms a major cluster and

every big or small company wants

to be at par with its competitors.”

Mukund Kulkarni, President,

Chamber of Marathwada Industries

and Agriculture (CMIA), opines,

“The stupendous growth attained in

the past few years has led to the rise of

various first generation entrepreneurs

in Aurangabad. They are updated with

the industry’s scenario and the latest

technological advancements. This

can also be cited as one of the major

reasons for the use of various latest

CNC machines in Aurangabad today.”

CNCs IN SHOP FLOORS SMEs have also welcomed CNC

machines into their shop floors.

“You cannot compete with your

contemporaries if you are not aware

of the latest technology in the business

today,” avers Umadikar.

Although CNC machines are

difficult to programme, they require

less manual intervention to operate—

an advantage in a region that

significantly lacks skilled labour that

could explain the rise in deployment

of these machines. While almost

all the industries in Aurangabad

have opted for CNC machines, a

major chunk of around 70–75%

go to automotive players and auto

components manufacturers here. With

majors players like Bajaj Auto, Skoda

and Sanjeev Auto setting up their base

in the region, the adoption of CNC

machines saw a new light in this

growing industrial hub.

BEHOLDING COLOSSAL POTENTIALWith the major industries wanting to

set up base in the region, machine tools

manufacturers can definitely prepare

themselves to cater to the burgeoning

demands. Substantiating the fact,

Mukund Sangvikar, Proprietor, Jyoti

Marketing Agency, adds, “Various

new businesses will come up in

Aurangabad. Also, the auto industry is

set to grow further in the next couple

of years. Both mean that more and

more sophisticated machines & CNC

machines will be used. People see

them as a one-time investment, which

will help them in the long run.” After

all, it is all about making customers

happy.

By adopting CNC machines, not

only reduces cost, but a new level

of accuracy is also attained. And as

far as the industrial development of

Aurangabad is concerned, it has

been growing at a rate of 14% per

year since the last couple of years…a

growth momentum which is likely to

continue in the coming years. This

trend augurs well for the machine

tools industry. In the end, the trend

is here to stay and would grow with

increasing competition and expansions

by existing players.

T

Offering Manufacturers A Cutting EdgeHousing over 2,000 CNC machines, Aurangabad has become one of the most promising destinations for machine tool manufacturers in India. With the burgeoning growth witnessed in industries like automotive, heavy engineering and FMCG, the growth prospects for machine tools are bound to witness a high in the years to come.

NISHI RATH

10 AURANGABAD HIGHLIGHTS SEARCH - Supplement June 2012

Bajaj Auto unveiled their first-ever

four-wheeler in January this year. The

RE60 will be manufactured in Bajaj’s

plant in Aurangabad. The four-seater

RE60 targets commercial users and

three-wheeled vehicle owners in India

and claims low carbon emissions and

fuel efficiency. The RE60’s price, at

an estimated `1 lakh, could lead to

tough competition in the segment.

The RE60 was developed under the

ultra low cost (ULC) car project with

Nissan-Renault and Bajaj to be the

three stake holders. However, Renault-

Nissan are yet to confirm whether

they would sell the RE60 under their

respective brands. Originally, the plan

was that Bajaj Auto would develop

and manufacture the ULC car while

Renault-Nissan would distribute it

under their respective brand names.

However, it remains to be seen

what happens to this arrangement as

Renault-Nissan are yet to come out

with a clear picture on this.

With the government giving the

much needed go ahead for the

proposed Shendra-Bidkin Mega

Industrial Park, Aurangabad is

geared up for more growth.

The nod from the government

came in October 2011 in order

to initiate a pilot project with the

Aurangabad belt. As part of the

Delhi-MumbaiIndustrial Corridor

(DMIC) the state has decided to

develop the Shendra-Bidkin belt as

planned industrial townships to act

as one of the major investment node.

It is being developed with Japanese

assistance.

The project will generate around

3 lakh jobs in technical, non-

technical, trained and untrained

sectors. Apart from this the city

will get connectivity with other

districts through four-and six-

lane roads, transportation through

trains will be convenient due to the

establishment of railway seeding, it

will have quality basic amenities and

educational facilities and 24-hour

uninterrupted electricity and water

supply.

The Mega Park will be developed

on 10,000 hectares of land and the

district administration has already

started acquiring land. Efforts are to

acquire land in Bidkin, Nijalgaon,

Bannitanda, Banglatanda and

Nandalgaon.

Out of the 10,000 hectares of

land needed, 813 hectares will be

acquired for the first phase, 2,363

for the second and 6,847 for the

third and final phase. Water from

Jayakwadi reservoir will be supplied

to this project. Around 51 TMCM

water will be required for the project

which is less than 2% of the total

storage of Jayakwadi reservoir,

according to district administration

sources.

Nagpur Automotive Industries

Private Limited has acquired 100% in

Adhunik Metaliks’ forging subsidiary -

Neepaz V Forge India Limited for an

enterprise value of `230 crore.

The transaction is in line with

Adhunik Group’s overall strategy to

divest its non-core assets and focus on

its core businesses. Adhunik Metaliks

bought a majority stake in V Cube

Forge India Ltd in August 2007 and

the company was renamed as Neepaz

V Forge.

Neepaz V Forge Limited has

manufacturing facilities in Aurangabad

to manufacture various automotive

products like crank shafts, under

brackets, steering knuckles, steering

arms, tie rod arms, cam shafts, spindles

and several other forgings for major

OEMs like Tata Motors Ltd, Ashok

Leyland, Mahindra & Mahindra, John

Deere, Escorts and Dana Spicer.

It also supplies products to non

automotive companies such as Tractors

Engineers Ltd and Greaves Cotton.

FIRST FOUR WHEELER FROM BAJAJ AUTO COULD HIT THE MARKET DURING THE THIRD QUARTER OF 2012 SHENDRA–BIDKIN MEGA

INDUSTRIAL PARK TO BOOST GROWTH

NAGPUR AUTOMOTIVE ACQUIRES ADHUNIK METALIKS FOR ENTERPRISE VALUE OF `230 CRORE

RE60 at a glanceRE60 will be manufactured in Bajaj’s plant in Aurangabad. The four-seater targets commercial users and three-wheeled vehicle owners in India and claims low carbon emissions and fuel effi ciency. It is priced at an estimated Rs 1 lakh.

Varroc Group signed a deal with Visteon Corporation, a US-based global

automotive components maker to acquire their global lighting business in cash.

The deal is expected to be closed around the third quarter of 2012.

“I am very excited about this acquisition since it is a major step in our vision

of achieving $4 Billion revenue in 2020. It also demonstrates our commitment

to invest in technologies and global capabilities to grow our businesses. Our

annual revenues will be close to `6,000 crore with this acquisition,” said Tarang

Jain, MD, Varroc Group in an official statement.

With this acquisition, Varroc group will have 31 manufacturing plants

and 4 engineering facilities worldwide. The acquired business entities include

manufacturing and engineering facilities in Nový Jičín and Rychvald, Czech

Republic; Monterrey, Mexico; and Pune, India. These 6 manufacturing

operations employing over 4,000 people which includes an engineering centre

with over 400 engineers. The acquisition will also help Varroc enter into global

automotive exterior lighting market for 4 wheelers. The company presently has

strong presence in two wheeler lighting business.

VARROC GROUP ACQUIRES VISTEON’S GLOBAL LIGHTING BUSINESS

12 STRONGHOLD OF MAHARASHTRA SEARCH - Supplement June 2012

he Mara thwada

region was merged

with Maharashtra in

1960. At that time,

industrialisation had

just begun in the region and the

Maharashtra Industrial Development

Corporation (MIDC) had started the

process of acquiring land for setting

up industrial estates in the area. This

move, has, over the years, led to the

tremendous growth of Aurangabad.

It’s no wonder then that the city is

now one of the classic examples

of sincere efforts towards balanced

industrial growth.

THE SPECIAL ECONOMIC ZONES (SEZs)The efforts of MIDC have produced

some brilliant results. Today,

Aurangabad boasts of significant

industrial areas, such as Shendra,

Chikalthana and Waluj MIDC

industrial estates. These areas, over

the years, have witnessed a steady

flow of investments and are home to

both, national as well as international

manufacturing players. The sectors

that have attracted major investment in

the region are automotive, engineering

and pharmaceutical, among others.

Over the years, the place has

emerged as a preferable choice for

automakers. Aurangabad made

headlines in 2010, when a group of

more than 150 local businessmen

decided to buy Mercedes-Benz car

each, spending nearly $15 million.

This instantly put Aurangabad on

the world map. This order not only

attracted investments from Mercedes-

Benz, but also forced several other

major players to give a serious thought

to this region. And when a group

of young entrepreneurs, including

builders, industrialists, doctors and

other professionals booked 101 BMW

cars in a single day, it proved that for

companies looking at expansion and

growth, Aurangabad is the place to be.

“In the last few years, the engineering

and automotive sectors have picked

up really well. It all started with

Bajaj, which set up a manufacturing

facility here. This facility acted as an

inspiration for the entire industrial

fraternity to follow suit. Later, Skoda

forayed into Aurangabad—a move

which significantly helped SMEs

dealing in auto parts to thrive,”

says Mukund Kulkarni, President,

Chamber of Marathwada Industries

and Agriculture (CMIA).

The city is the third in Maharashtra

after Pune and Nashik to offer an

automotive cluster. Skoda Auto

assembles its premium models such as

Superb, Laura and Yeti; Passat and Jetta

for Volkswagen; and A4, A6 and Q5

for Audi from its Aurangabad facility.

Recently, Bajaj Auto has also launched

its first four-wheeler, manufactured in

its facility in Aurangabad.

Apart from automobile, pharma

giants such as Wockhardt, Lupin

and Glenmark have also made their

presence felt in the region. In fact

in 2004, Wockhardt opened India’s

largest biopharmaceutical complex

with six dedicated manufacturing

plants at Aurangabad. The `200 crore

state-of-the-art biopharmaceutical

complex is spread over 3 lakh sqft.

INFORMATION TECHNOLOGY TO ACT AS A GROWTH CATALYSTIn recent years, the city has witnessed

T

Aurangabad celebrated 50 years of industrial development in April this year. From being just a centre of tourist attraction to a rapidly growing manufacturing hub, the journey for Aurangabad has been glorious. With major automobile, consumer durable and pharmaceutical companies setting up their manufacturing base here, the city has been growing at the rate of 14% since the past few years and is expected to become a major industrial hub in years to come. A report…

NISHI RATH

13STRONGHOLD OF MAHARASHTRASEARCH - Supplement June 2012

a rapid growth in Information

Technology (IT) and it is expected

that the area would soon emerge as a

major IT hub. And with the major IT

destinations such as Bengaluru, Pune

and Hyderabad reaching a saturation

point, software professionals are

looking for new options. In such a case,

Aurangabad offers immense scope to

emerge as a growing IT centre.

“The IT sector had started taking

baby steps in Aurangabad, until the

STPI came up and gave it the much

needed push. With Aurangabad

growing and major investment

happening, it is just a matter of time

until the area starts attracting the

attention of IT giants. Few more

years and we expect Aurangabad to

be added to the list of rapidly growing

IT centres in India,” says Jayant Soni,

MD, Akshay Industrial Enterprises.

“The next big thing, after pharma

and automobile, is definitely

IT. The sector is gaining

ground here and will help raise

the growth rate in a couple

of years,” says Parvesh Batra,

VP, Aurangabad Industrial

Suppliers Association.

“Not only professionals,

medium-sized companies and

first generation entrepreneurs,

who want to try their luck

in this industry, prefer

Aurangabad because the place has

lots of opportunities and is cheaper as

compared to other developing cities. A

good future awaits the industry here,”

adds Batra.

STRENGTHS AND WEAKNESSESAccording to industry sources, the

historical background of the place

helps attract foreign investors. Besides,

Aurangabad also boasts of a very strong

brigade of young and enthusiastic first

generation entrepreneurs. They not

only bring in new ideas, but also help

foster rapid growth.

“Availability of resources like

land and economic labour is one of

the very important factors that are

aiding the growth rate. Apart from

this, a very good dealership network

has contributed towards the overall

industrial development,” says Rahul

Dhoot, MD, Dhoot Transmission.

However, like any other region,

Aurangabad also suffers from certain

drawbacks such as lack of connectivity

and infrastructure. Also, skilled

manpower is another problem area

though many believe that with the

coming up of technical institutes, the

availability of skilled labour will not be

a problem.

The city’s poor infrastructure is not

attracting talent. To address this issue,

an Aurangabad Regional Development

Authority needs to be formed and

`1,500 crore could be allotted as

funds for the region’s development (it

is noteworthy to mention here that

the city contributes approximately

`3,800 crore to the State Government’s

kitty only through taxes). Also, the

most vital mode of transportation—

roads—is in a poor state and needs

urgent attention. To improve

communication, a six-lane could be

added along the Pune-Aurangabad

route; whereas the Manmad-Jalna rail

track should be two tracks with siding

at Shendra and Jalna industrial area.

“We have all the basic requirements

in place, but connectivity to the

industrial areas is a major issue. Apart

from this, unavailability of R&D/

technology upgradation facilities and

skilled labour at times play spoilsport,”

avers Shirish Tambe, GM, Osborn

Lippert (India) Pvt Ltd.

“There are various good engineering

colleges and technical institutes that

are trying to fill the void between

the demand and availability of skilled

labour in the area. Given a year or

two, the city will have some of the

best talent to boast of,” claims Mohini

Kelkar, MD, GrindMaster Pvt Ltd.

A PROMISING FUTUREAurangabad has become an emblem

of an altogether different Maharashtra

—the booming, increasingly

urbanised economic powerhouse.

With the industrial presence of

significant corporate players, the city

is buzzing with activity. The special

initiatives taken by the State

Government have and will continue

to play a vital role in promoting

Aurangabad as a city with a

promising future. Keeping in view

all the congenial factors necessary for

setting up corporate infrastructure,

Aurangabad is all set to

witness tremendous growth

within a few years time.

Sectors like automotive

and engineering, pharma and

seed/agro have a lot of growth

potential and this trend is

likely to continue in years to

come. Also, in some years,

the Delhi-Mumbai Industrial

Corridor (DMIC) will be

functional and Shrenda-2

will be active. These will come as a

major boost to the growing city and

create more opportunities. Besides,

Aurangabad is also set to see sizeable

IT companies making a foray into the

industrial city. I would also like to

add that the International Convention

Centre will come into existence and

Aurangabad will be part of the elite

cities’ list to hold exhibitions & trade

shows and will make it to the world

map.

As rightly put by Debashish

Mitra, Head – Sales & Marketing,

Mercedes-Benz, India, “The story of

Aurangabad is the story of India.”

[email protected]

What makes Aurangabad an attractive investment destination… Availability of ample land for new projects Good educational institutions and lifestyle amenities Strong air and rail connectivity A Software Technology Park and all related amenities Presence of an inland container depot, which has seen

a sharp increase in exports from Aurangabad.

14 INSPIRING EXCELLENCE SEARCH - Supplement June 2012

merican writer William

A Ward once said,

“Adversity causes some

men to break, others to

break records.” The same

holds true for Umesh Dasarathi, who

not only established Rucha Group ,but

also continues to lead it to great heights.

It was the sheer passion for engineering

knowledge and craze for creativity that

inspired him to keep going. However,

like every successful venture, this too

faced its share of troubled times. From

the rigid attitude of the workforce to

the logistics issues apart from the fear

of failure, Dasarathi faced it all.

“The initial days were

tough. There was scarcity

of ski l led manpower,

non-availability of proper

infrastructure facilities and the

anxiety to start a new venture, and

what not. However, I took all that

in my stride and learnt a lot of

things. The key to our success lies

more in the fact that we slowly,

but steadily, kept working with

a conviction to achieve the desired

results,” says Dasarathi.

LAURELS BAGGEDRucha Group began its operations

with a single employee and now has

a full-fledged team of 1,000 people. It

boasts of major automotive players as

its clients, including Bajaj Auto Ltd,

Piaggio Vehicles Pvt Ltd, Automotive

Stampings & Assemblies Ltd, Walker

Exhaust System Ltd and Lombardini

India Pvt Ltd, among others.

“From 1991–94, we were in the

service sector. Later, we entered the

manufacturing segment and gradually

diversified into surface coating,

machining, plastic moulding and blow

moulding among others,” he adds.

THE FOCUS AREASRucha Group, today, majorly deals

with complex and precision sheet metal

assemblies, machined components,

plastic moulding parts, blow moulded

parts, surface coating tool room and

so on. The Group is one of the

leading players in the segment. “We

mainly cater to the automotive and

home furnishing sectors. We are soon

planning to incorporate a world-class,

state-of-the-art facility for OEMs to

supply auto components.”

Sharing his success mantra with

new age entrepreneurs, Dasarathi says,

“Look at the growth rate of China.

They have achieved such a fantastic

growth rate mainly because of their

determination, discipline, development

through technology, speed and efficient

operations. There is fierce competition

in the market and so, if we have to

survive for a long time, we need to be

the best in whatever we do.”

AURANGABAD OVER THE YEARS...According to Dasarathi, Aurangabad

was more like a glorified village,

than an urban city, in the early 70s.

“It all started in the 70s, when the

sleeping city emerged on the industrial

map of Maharashtra and a number

of players ventured and set up their

manufacturing plants in Aurangabad.

The city witnessed rapid growth in the

80s, with tourism emerging as a strong

segment. The famous ancient caves of

Ajanta and Ellora were the centre of

attraction then,” says Dasarathi.

It was during this time that

the industrial scenario took off

in a big way. Prominent sectors,

such as pharmaceuticals, breweries,

engineering, automotive, consumer

goods made ventured into the region.

“In the 90s, the place was given

the title of being ‘Asia’s fastest

growing city’. Later, when the

software technology park was

established, IT industry expanded

its base here. It was followed by a

survey report by Karni. This report

placed Aurangabad among the 10

lucrative and potential progressive

destinations in India,” he adds.

A huge number of MNCs in

various sectors have established

their manufacturing plants in

Aurangabad in the last one decade,

resulting in improved skill sets.

WHAT DOES THE FUTURE HOLD? Dasarathi strongly believes that very

soon, Aurangabad will make it to

the top five cities of India. “This will

happen gradually as Aurangabad has

many advantages like good and trained

HR availability, hard working people,

strategic location, excellent blend of

ancient culture with western style,

togetherness of people for a purpose

and most importantly, the city has a

strong desire to grow,” Dasarathi says.

Before signing off, he adds that the

place will see a rise in industrialisation,

tourism and IT in the next five years.

A

When we started the company, our initial turnover was `25,000. However, the efforts of the

team has borne fruit and we have posted a yearly turnover of `400 crore. The company witnessed a growth of 20% last fi scal and aims to achieve a growth of 25% this fi scal.”Umesh Dasarathi, MD, Rucha Group of Companies

Perseverance breeds SUCCESSHe battled all odds to see his dream come alive. Today, the success story of Umesh Dasarathi, MD, Rucha Group of Companies, has become a source of inspiration for society. Here’s presenting his success story…

NISHI RATH

16 INVESTMENTS SEARCH - Supplement June 2012

The Rising Industrial GiantEntrepreneurial spirit, support from established players and the State Government has made Aurangabad an industrial area of repute. With multiple SEZs and constant fl ow of investments in multiple sectors, Aurangabad has found its place on the industrial landscape after Mumbai & Pune. Profi ling some of the major investments in this region in the last fi ve years...

SUMEDHA MAHOREY

AUDIInvestment: €10 million

Project: To scale up capacity at its facility by 50% to 9,000 units

Location: Aurangabad

Description: The company is building a new assembly hall, to be called ‘Hall C’, which would contribute to the production of another 3,000 cars. Speaking about the investment in this expansion project, Michael Perschke, Head, Audi India, said, “Once the initial investment of €30 million is exhausted, the company may revisit investment plans. When we started our business five years ago, the investment was calculated at around €30 million. Of this, we have consumed €20 million till last year. Probably, with the present investment, we will consume the €30 million by end of this year.”

Additional Info: The Aurangabad facility was initially designed with one assembly line to produce A4, A6 and Q5 models with a capacity of 3,000 cars per shift. This has now been doubled to 6,000 cars with two shifts. To achieve the increasing target volumes in the Indian market, the company also plans to expand the dealership network to 25 this year from the existing 18.

PERKINS INDIA

Investment: `780 crore

Project: Plans to set up a greenfield facility to manufacture diesel and gas engines

Location: Shendra Industrial Estate, Aurangabad

Description: Headquartered in Peterborough, UK, Perkins Engines Company Ltd is a wholly-owned subsidiary of Caterpillar Inc. Perkins plans to manufacture its 4000 Series diesel and gas engines, which are used in power generators, currently made only in the UK.

Additional Info: Shendra Industrial Area has been incorporated in the Delhi Mumbai Industrial Corridor project. The Maharashtra Government would soon enter into a memorandum of understanding with the company. The project would be granted mega project status. Initial groundwork may commence by June 2012. Within 12 months, the plant may soon be operational. The plant will have a capacity to produce 3,000 engines per year.

GREAVES COTTON


Project: Setting up of a new engine manufacturing unit


Project: The company is planning to diversify into manufacturing of small diesel engines for the fast growing passenger car space & bigger engines for light, medium and heavy duty trucks. The company is also planning to expand its diesel engine manufacturing capacity. The new engine unit set up at a CAPEX of `50 crore in Aurangabad will take the company’s total automotive engine manufacturing capacity to 4 lakh units per annum.

17INVESTMENTSSEARCH - Supplement June 2012

SIEMENS

Investment: `250 million (`25 crore)

Project: Greenfield High Voltage Instrument Transformer Factory

Location: Waluj, Aurangabad

Description: The unit is spread over an area of approximately 4,500 sqm. The manufacturing facility provides direct employment to about 100 people and indirect employment to about 300 people. The facility manufactures a range of Instrument Transformers such as SF6 Insulated Current Transformers, Voltage Transformers and state-of-the-art Oil-filled Capacitor Voltage Transformers up to 765 kV. To maintain a high degree of quality and accuracy while manufacturing, all main activities like core winding, active part assembly, all impregnation, vacuum and oven process, final assembly and testing are done in-house. The factory also has an in-built state-of-the-art testing facility with test equipment imported from Haefely, Switzerland. Another unique feature is that the current and potential transformers are manufactured without any use of paper or oil, thereby reducing the production time by about four weeks.

ENDRESS+HAUSER

Investment: €19 million

Project: Production facilities for level, pressure and flow measurement engineering equipment


Description: The new premises are divided into three buildings, with a total of 5,000 sqm of floor space for the production of level and pressure measurement instruments as well as logistics and administration. Immediately next door, the company has invested €13 million in the extension of their production facilities for flow measurement engineering.

VARROC GROUP


Project: New plant to produce front axle beams and crankshafts

Location: Waluj, Aurangabad

Description: From supplying connecting rods that weigh a maximum of 15 kg to supplying crankshafts weighing a quintal, the company is ready to take a big leap through its metallic business division. Trial production at its new plant will start by July. This plant will have an annual production capacity of up to 200,000 crankshafts for six-cylinder engines for commercial vehicles. The `150 crore plant will also produce front axle beams, another new component in Varroc’s portfolio. With the current commercial vehicle expected to grow in tandem with the economy, the plant is expected to hit peak capacity in 3–4 years.

HINDALCO-ALMEX AEROSPACEInvestment: Undisclosed

Location: Shendra, Aurangabad

Project: State-of-the-art plant to manufacture hard aluminium alloy billets and slabs

Description: Billets up to 1,060 mm in diameter are being manufactured at this facility. This is a first-of-its-kind facility in India, which is exclusively devoted to high-performance aluminium alloys. This greenfield facility has come up on 20 acre of land. With state-of-the-art technologies in casting, homogenising, machining and ultrasonic testing, HAAL is a futuristic plant. Emphasis has been laid on the use of clean fuel and efficient technologies.

[email protected]

SEARCHSEARCH - - Supplement June 2012Supplement June 20121818 GRINDMASTER FACILITY VISITGRINDMASTER FACILITY VISIT

mall opportunities are

often the beginning of

great enterprises”—this

line by the famous Greek

Orator Demosthenes

stands true for GrindMaster. What

started 28 years ago by an engineering

graduate couple Mohini and Milind

Kelkar in Aurangabad is now a world-

class player in grinding, finishing and

precision engineering with a proud

client list including the likes of Tata,

Yamaha, Bharat Forge and Bajaj,

among others. “Bajaj Auto setting up

their facility here was an opportunity

for us. We had just completed our

engineering and wanted to start

something of our own. This is how

we set up GrindMaster,” says Mohini

Kelkar, MD, GrindMaster. She explains

that the initial years were not smooth,

but hard work has led them to where

they are today. “During those years,

most metal finishing and deburring

operations were performed manually.

These processes had limitations on

productivity, accuracy and consistency

of both the result and finish. Thus,

we came up with automatic and semi-

automatic machines to overcome the

lacunae,” she elaborates.

THE JOURNEY SO FAR… Their first endeavour was to develop

a buffing machine for polishing pots

and pans. Subsequently, they came up

with automatic machines for grinding

the parting line of forgings followed by

centreless machines for grinding and

polishing. Soon after, they developed

the country’s first indigenously

designed fully automatic motorcycle

rim polishing machine, which till

then had to be imported. Today,

the company has carved a niche for

itself in the global industry of metal

finishing and deburring. It boasts of

developing and building machines

to suit individual needs and now

possesses one of the widest range of

special purpose machines dedicated to

the processes of deburring, grinding,

polishing and micro-finishing. With

a proven track record of successfully

developing new concepts and

cutting-edge technological solutions,

GrindMaster has earned the reputation

of getting it absolutely right the first

time.

CONTINUOUS DEVELOPMENT: KEY TO SUCCESS In the early 90s, GrindMaster set up

It all started in a garage in Aurangabad in 1984, with the making of small super-fi nishing machines. After years of dedication and hard work, the Kelkars have made GrindMaster a pioneer in providing speciality products to companies across the globe. With continuous innovations, the company has created its own benchmark for excellence. A recent visit to their facility in MIDC, Aurangabad, speaks volumes of the hard work put in to ensure that Aurangabad fi nds a prime spot for itself on the global map…

“S NISHI RATH

Stepping Towards

Stepping Towards

Exponential Success

Exponential Success

19GRINDMASTER FACILITY VISITSEARCH - Supplement June 2012

its new manufacturing unit at MIDC,

Aurangabad, and consolidated its

expanding range of machines in terms

of components and build-quality. This

proved crucial in the successful export

of machines, starting with South East

Asia and subsequently, expanding to

countries all over the world. In the

late 90s, in order to explore other

opportunities to provide customers

with complete solutions, GrindMaster

ventured into the business of

consumables. “We consequently forged

a technical collaboration with VSM,

Germany, for a complete range of

coated abrasives sold throughout India.

A conversion plant set up in 2000 has

been successfully manufacturing coated

abrasive belts and rolls since then,”

says Mohini.

In 2002–03, GrindMaster started

developing micro-finishing technology

for the processing of automotive parts

and hard chrome plated rolls. Later,

upon signing a licensee agreement with

IMPCO, USA, for GBQ Technology

for micro-finishing of crankshafts and

camshafts, GrindMaster joined the

small elite group of world companies,

which has the capacity and expertise

to manufacture niche sophisticated

metal finishing machines. “From 2004

onwards, we geared up for future

expansions and started with investing

in infrastructure and machinery.

The systems were smoothened out

with the implementation of Axapta

– ERP Software,” adds Milind. The

company’s current R&D challenges

include Robotic Deburring and

Finishing Systems.

A LOOK AT THE SHOP FLOOR… ‘Customised solutions’ is the name of

the game! What makes GrindMaster

the preferred product and service

partner is its tailor-made solutions that

they provide to each of their customers.

A visit to their well organised shop

floor and interaction with the

enthusiastic and dedicated team stands

testimony to the fact that listening and

catering to your customers’ needs pays

handsomely.

From a humble beginning to one of

the best in the field, GrindMaster

has come a long way. After catering to major domestic

players, the company has now truly gone global by opening

its first office in China. There, they compete with major

German companies on the basis of superior technology.

“We are in a key position to cater to the whole world in our

niche,” says Milind Kelkar, CEO, GrindMaster.

STEADY GROWTH IN AURANGABADWith companies like Bajaj Auto and Skoda making their

presence felt here, the automotive sector has seen a boom

over the years. Its proximity to Pune, which is already

home to various automotive companies, has also helped

Aurangabad grow. In home appliances, major players,

like Videocon and Nirlep, have their base here and have

immensely contributed to the growth of this region. Also,

there are pharmaceutical companies, which can be given

due credit for the city’s development. Overall, this place

has good potential. Also, IT has started witnessing growth

here. But I believe that it does not contribute to the

growth of a region apart from generating a large number

of mundane, but well paying jobs. Besides, major industries

have set up their base here, while many others are eager to

invest in this fast growing city. Aurangabad is set to see

another leap in the next few years.

MANPOWER ISSUES Unlike the situation 20 years ago, Aurangabad has around

eight engineering colleges. While the situation has definitely

bettered over the years, the quality of education still needs

dramatic improvement. Also, companies setting up shops

here need to develop a work culture within their organisation.

NEED FOR BETTER CONNECTIVITY Every developing region needs to have basic infrastructure

in place. Although we do not lack any of it, we wish

Aurangabad was better connected to the southern part of

the country by air.

MILESTONES ACHIEVED... MILES TO GO We started with only two people onboard, and now, we have

a dedicated team of 200. We have aspired and achieved what

many people had dreamt about in those days in a region like

Aurangabad. We wanted to do something different, and so

we started GrindMaster. Now, we have a dream to provide

the best to our employees and bring out the best of their

capabilities. The beginning is always difficult, but so is

achieving the No. 1 position. However, the most difficult

is maintaining it. Aurangabad is looking forward to a new

era of growth and there is much more to come. But I wish

to see Aurangabad creating its unique identity rather than

competing & being at par with Pune.

‘I wish to see Aurangabad creating its unique identity rather than competing & being at par with Pune’“Major industries have set up their base here, while many others are eager to invest in this fast growing city. Aurangabad is set to see another leap in the next few years,” says Milind Kelkar, CEO, GrindMaster, during an interaction with Nishi Rath. Excerpts…

20 GRINDMASTER FACILITY VISIT SEARCH - Supplement June 2012

The manufacturing activities

of GrindMaster can be divided

into fabrication, machine shop and

assembly. The fabrication shop is

trained for manufacturing high-quality

and precision machine bases. The

machine shop is equipped with CNC/

VMC machines and grinding machines.

All critical parts of the machines

GrindMaster produces are made in

its in-house machine shop. These

parts are then inspected for accuracy

with high-class testing equipment like

CMM. The machine assembly section

is divided into standard machines and

special purpose machines for deburring,

belt grinding and polishing. Micro-

finishing machines are assembled in a

separate section.

IMPROVING THE VALUE CHAINFor GrindMaster, a great team leads

to a great future. To ensure the

team’s safety, the company has various

initiatives in place. “We have safety

training in place that is held almost

every month. Apart from that, we

have safety audits, wherein we keep a

regular check on the cranes and other

machines/equipment while keeping

in mind the safety of employees,”

says Milind. The management is also

working towards creating a paperless

office and is taking all the steps to

achieve the target soon. Besides, the

Kelkars also believe in continuous

upgradation of every employee.

For operating level employees,

drivers & clerks, English classes are

held to improve their language and

communication skills; whereas for fresh

engineers, an elaborate engineering

programme is conducted. Similar

technical upgradation programmes on

hydraulics, PLC programming, lube

systems, etc., are also regularly held for

all concerned employees. Definitely,

the Kelkars are on the right track to

take GrindMaster to the next level.

FUTURE PROSPECTSAccording to Milind, when they

started, nothing was easily available.

Even for procuring a small thing

like an electric motor, the couple

had to head to Mumbai. “But now,

times have changed. Aurangabad has

everything right from suppliers of

machine components to sophisticated

programming skills and software,” he

says. Mohini agrees, “Till 2000, the

growth was somewhat sluggish, but

after that, it has grown by leaps and

bounds. Now, Aurangabad is the place

where companies are looking for more

sales and business.”

After having hit the right chord

in the Indian machine tools industry,

GrindMaster has all its future plans in

place to make it bigger. In the recent

years, after extending the IMPCO

licensee to China, GrindMaster began

manufacturing crankshaft micro-

finishing machines for China. Auto

major, General Motors, Shanghai,

features among their list of customers

for whom a state-of-the-art high

volume crankshaft micro-finisher

was delivered and commissioned

successfully. Presently, the company

has set up a permanent office in

China to provide sales and service

support. “GrindMaster is probably the

only machine tools company that is

supplying machines in such a big way

in China. There, we are competing

with German manufacturers. It is not

the pricing that has led us there, but

our technology, which we provide in

collaboration with our partners in the

US for micro-finishing of crankshafts

and camshafts,” says Milind, adding,

“These are important engine parts and

require high technology.”

GrindMaster has been consistently

growing year-on-year by 15–20%,

but with this addition in China, the

growth has been almost 1.5 or 2 times

since the past two years. “Innovation is

the key. Every day, there is something

new innovated at every level. Various

deburring techniques are being

developed; our latest addition in the

category would be robotic deburring.

We have also developed some robotic

applications in the past one-and-a-half

years. Robotic deburring, fettling and

robotic handling of our machines is

now done by our new division headed

by our son, Sameer, who has joined

us,” says Milind.

With Aurangabad growing as

an industrial hub, companies like

GrindMaster play a strategic role

in the area’s growth. With strong

technical and innovation skills, the

company has already started looking

ahead and has charted out its growth

strategies. GrindMaster, as the Kelkars

say, is now stepping ahead to witness

another era of exponential success.

[email protected]

GrindMaster has both semi-automatic and manual machines

22 OPINIONS & MORE SEARCH - Supplement June 2012

URANGABAD BEYOND TOURISM...Since the 1960s,

Aurangabad has

witnessed immense

growth. While major companies

continue to invest in the region, the

existing ones are looking at expansion

to cater to the huge industrial demand.

Major credit goes to Bajaj Auto and

Videocon. These companies laid the

groundwork for the Aurangabad that

the world knows today.

Earlier, it was just Ajanta and Ellora

caves and the rich history that attracted

attention from different quarters. But

the presence of Baja Auto ensured

that major auto giants such as Skoda

were lured into the region. The growth

of the automobile industry gave rise

to the demand for auto component

suppliers. Today, Aurangabad boasts

of being a major automobile hub of

India, with a dedicated SME cluster

dealing in auto components.

OPPORTUNITIES GALORE FOR COMPONENT SUPPLIERSTill the early eighties, various

industries such as consumer durables,

automobiles and pharmaceuticals,

among others, based in Aurangabad,

had to source their raw materials

requirements from distant markets

like Pune and Mumbai. So, there was

an urgent for SMEs to set up base

in the city. Making the most of the

opportunity, various small units came

into existence. It not only helped

the industries, but also encouraged

first generation entrepreneurs in

Aurangabad. This was also the time

when the Aurangabad Industrial

Suppliers Association (AISA) was

formed.

As of now, we have more than

200 members dealing in various

commodities from stationery and

hardware, to paints and electronic

goods and have been rendering service

to the industry in the region.

TECHNOLOGY PLAYING A CRITICAL ROLEThe success of manufacturing

industries has increasingly become

dependent on innovations, research

and development. Innovation is

important not only to be competitive,

but also to develop and adopt new

technologies.

As industrialisation has taken the

centre stage in Aurangabad, it has

given way to technological adoption

in the manufacturing facilities.

Today, one can find almost all the

latest technologies being used in the

industries, based in Aurangabad.

Automation and robotics, too, have

come a long way. In the current

scenario, the Aurangabad-based

business houses present a full spectrum

of technological capabilities. In fact,

there are homegrown companies like

GrindMaster, Videocon and Bajaj,

which have taken Aurangabad to the

world map in terms of product design

capability and process technology.

MILESTONES ACHIEVED... MILES TO GO With the government giving a green

signal to the Shendra-Bidkin Industrial

Park, Aurangabad is expected to

witness substantial growth in the next

couple of years. The opening of the

industrial park will definitely attract

more companies to Aurangabad,

which, in turn, will see growth in areas

like real estate, information technology

and the packaging industry.

This city has a fighting spirit

and has overcome challenges like

limited infrastructure and inadequate

skilled manpower to become one

of the most attractive places for

foreign and homegrown companies to

invest in. Despite achieving all this,

the city’s apetite for growth is still not

satiated.

[email protected]

A

Aurangabad has a Fighting Spirit

Parvesh Batra

President of Aurangabad Industrial

Suppliers Association (AISA)

“The city has overcome challenges like limited infrastructure and inadequate skilled manpower to become one of the most attractive places for foreign

and homegrown companies to invest in. Despite achieving all this, the city’s apetite for growth is still not satiated,” avers Parvesh Batra, the newly elected

President of Aurangabad Industrial Suppliers Association (AISA), during a conversation with Nishi Rath. Excerpts…

23OPINIONS & MORESEARCH - Supplement June 2012

URANGABAD, OVER THE YEARS… Industrialisation made its

foray into Aurangabad

during 1960s when

companies like Nirlep, among others, set

up base at the railway station industrial

estate. Gradually, the industrial culture

started to gain momentum in the

city and in the 1970s, Chikalthana

industrial estate became functional. But

this was just the beginning; within a

few years, Aurangabad was on its way

to make it big. Aurangabad witnessed

major growth around the 1980s when

Bajaj and Videocon entered the scene.

The presence of Bajaj, one of the

leading two-wheeler manufacturers,

laid the base for the automobile sector,

which saw a rise during the late 90s

and early 2000. Alongside, tier III and

mid-sized tier I companies also started

to make their presence felt. Around

this time, auto major Skoda also set up

base in Aurangabad. This marked the

beginning of the growth of Shendra

industrial estate.

TECHNOLOGY ADVANCEMENTSToday, Aurangabad is one of the fastest

growing cities in the country. The city

has now achieved the stage of matured

industrialisation with the growth of

the existing companies. The industries

here have come a long way, both in

terms of growth and technology. In

fact, many of them have already started

implementing systems like ISO, TS,

TPM and lean manufacturing in order

to meet international standards.

GROWTH OF SMEs Companies like Bajaj and Videocon

started sourcing components from

SMEs in and around Aurangabad

during the 90s. The growth continued

with major players, such as Varroc,

Endurance, Man Diesel, Can-Pack

India and Siemens, venturing into

Aurangabad. SMEs have a great

future ahead. This is an era of cost

competitiveness. Hence, to control

overheads and to reduce cost; there is

a need for SMEs. Besides, SMEs add

flexibility to OEMs’ business model.

ROLE OF CMIACMIA has been active ever since

the first industrial estate came into

existence. While informal activities

started around 1966, CMIA (then

Aurangabad District Industries

Association, ADIA) came into

existence around 1969. Since then, we

have come a long way. CMIA has also

made major contributions to provide

basic requirements. For instance, our

members were active in establishing

schools and hospitals in the region.

Going forward, the investment in

design and development facilities for the

auto & engineering industry through

the Marathwada auto cluster project

worth `81 crore through PPP will also

be one of the major contributions for

the region from our end.

ISSUES FACED IN THE REGIONThe non-availability of land is a

major issue at present and should

be addressed at the earliest. Besides,

Shendra-II region should also be

given priority and the nearby Guyran

region could also be converted into an

industrial zone. Another major issue

here is infrastructure.

MESSAGE TO NEW AGE ENTREPRENEURSWe have good opportunities in the

global market. However, we should

now focus on quality, delivery and

reliability. For this, we need to take

specific efforts in terms of changing

the operating culture of our industrial

establishments.

[email protected]

A“The industries here have come a long way, both in the terms of growth and technology. Local industries have started implementing systems like ISO,

TS, TPM and lean manufacturing in order to meet international standards,” says Mukund Kulkarni, President, Chamber of Marathwada Industries and

Agriculture (CMIA), during an interaction with Nishi Rath. Excerpts….

Matured industrialisation has taken Aurangabad to NEW HEIGHTS

Mukund Kulkarni,

President, Chamber of Marathwada

Industries and Agriculture (CMIA)


URANGABAD ON A GROWTH SPREEActual industrialisation

in Aurangabad started

in the 80s with Bajaj

Auto Ltd setting up its facility here.

Undoubtedly, there were industrial

units in the region prior to this.

However, with a major automobile

giant like Bajaj venturing into

Aurangabad, the entire scenario

changed—ever since, Aurangabad

has been considered as one of the

fastest growing cities in India. Today,

all the top companies are present in

the region. Moreover, Aurangabad

has become one of the preferred

destinations for those planning to

invest in Maharashtra. This, in turn,

has created business opportunities for

SMEs in the region. Additionally, the

industrial culture has offered a boost to

the overall growth of the region. With

rapid industrialisation, the demand

for other amenities has increased.

As a result, the number of good

schools, theaters, malls and shopping

complexes, among others, came up.

The region has witnessed tremendous

growth in the past few years and we

anticipate this growth to enhance

further in time to come.

INFRASTRUCTURE: A MAJOR ISSUE As is the case with every developing

region, Aurangabad too has some issues,

such as infrastructure and connectivity,

which still need attention. Till 1990,

the infrastructure was in a bad shape in

the region. While there has been some

improvement in telecommunication

and road & rail connectivity, among

others, thereafter; the infrastructure in

the region is still laden with limitations.

There is still a lot that needs to be

done with respect to infrastructure and

connectivity—majorly pertaining to air

and rail modes—as connectivity plays

a crucial role in a region’s growth and

development. Once Aurangabad has

all these in place, there would be no

looking back.

AURANGABAD, FIVE YEARS DOWN THE LINE… Once popular as a tourist destination,

Aurangabad has now emerged as one

of the finest machining hubs in the

country. The region, which is open to

new methods and use of automation &

robotics in existing setups, is growing.

It will certainly come up in a big way

in future. I am optimistic that five

years down the line, areas like Shendra

and Bidkin, among others, will be fully

developed.

Besides, the region’s growing

opportunities have encouraged many

first-generation entrepreneurs to enter

the market. This, in turn, has given

rise to healthy competition, as young

minds bring in new perspectives,

business ideas and global market

trends & technologies, among others.

All these factors will help Aurangabad

reach a different level altogether.

MESSAGE TO NEW AGE ENTREPRENEURS...Budding entrepreneurs know

exactly what they want. However, I

would like to advice them to remain

focussed and not look for shortcuts,

follow ethical trade practices and go

for solution selling.

FUTURE GROWTH PROSPECTS As far as our future plans are concerned,

we are planning to shift from product

selling to solution selling besides

diversifying into manufacturing. Since

the past three years, we have been

growing at the rate of about 45% and,

this year, irrespective of all odds, we

hope to maintain the growth rate to

about 40% or more.

[email protected]

A

Aurangabad has now emerged as one of the finest machining hubs

Jayant Soni

MD, Akshay Industrial

Enterprises Pvt Ltd

“The region will certainly come up in a big way in future. I am optimistic that fi ve years down the line, areas like Shendra and Bidkin, among others, will be fully developed,” informs Jayant Soni, MD, Akshay Industrial Enterprises Pvt

Ltd, during an interaction with Nishi Rath. Excerpts…


REATING CUSTOMER BASE IN INDIAWe started operating

in India in 2001. Since

then, we have added

several product lines to our basket. The

journey has been full of ups and downs,

but we have successfully sustained

our rapid growth, which has led to a

formidable base of satisfied customers

in India and in select overseas markets.

At Osborn, we are committed

to bring internationally advanced

technologies in surface finishing to

Indian customers. To this end, we

are in a process to grow our turnover

multifold over the next few years. We

will be creating additional employment

opportunities and will be introducing

new products into Indian market.

However, for all these activities to

happen, there is a need to invest more

in terms of facilities and manpower.

The management is planning to

significantly expand the manufacturing

facilities in Aurangabad, which will be

functional soon.

GROWTH OPPORTUNITIESThe Indian market with a population of

1.22 billion offers ample opportunities

for growth. And business in India,

specifically in Aurangabad, has

undergone tremendous change, over

the past few years. We have witnessed

10 years of collaboration and success

as a part of Jason Incorporated. And

now, we are aiming to grow five times

our current size over the course of the

next five years. We have doubled our

turnover every two years and hope to

maintain the same pace in the next few

years as well.

PROBLEMS FACED IN INITIAL YEARS During the initial years, one of the

main problems we faced was the

non-availability of trained manpower

at various levels. Apart from that,

the non-availability of affordable

housing for employees in proximity to

industrial areas and conveyance from

& to industrial areas often posed as

roadblocks. Although the situation has

changed for the better, there is still a

lot of scope for improvement.

THE CHANGING FACEFrom a sleepy town in the 70s,

Aurangabad has marched towards

becoming the growing industrial

and educational hub of central

Maharashtra. The sleeping city

has woken up to some amazing

industrialised growth, with various

multinational companies setting up

base here and contributing to the rapid

development of Aurangabad. The city

has grown tremendously over the years.

The industrialisation here is matched

with rapid growth in the educational

sector as well. Many institutions for

basic as well as professional training

have come up in last few decades.

This development has somewhat eased

the problem of skilled manpower in

the region. From the way things are

progressing, Aurangabad will continue

its journey towards rapid growth.

UNSTOPPABLE AURANGABADIt could be said that the city is on the

right track and will continue its journey

towards rapid growth in future as well.

The sprit of entrepreneurship present

here is indomitable. This would

ensure rapid growth of this city despite

the constraints. Industrialisation

would get a further boost due to the

upcoming Delhi Mumbai Industrial

Corridor (DMIC) project, which

would be implemented with the

cooperation of Japan. Not only this,

as mentioned earlier, this city would

also grow as an educational hub in the

years to come.

C“The sleeping city has woken up to some amazing industrialised growth, with various multinational companies setting up their base here and contributing

to the rapid development of Aurangabad,” says Shirish Tambe, General Manager, Osborn Lippert India Pvt Ltd during an interaction with Nishi Rath.

Excerpts…

Aurangabad will continue its journey towards Rapid Growth

Shirish Tambe,

GM, Osborn Lippert India Pvt Ltd


HE HUMBLE BEGINNING B i r l a P r e c i s i o n

Technologies is a

subsidiary of Yash

Birla Group, which is

a `30 billion conglomerate of over

20 diversified companies that run

the gamut from established sectors

like auto & engineering, textiles &

chemicals and power & electrical to

emerging sectors, such as wellness &

lifestyle, education & IT.

Birla Precision Technologies was

established in 1986 as Birla Kennametal

Ltd, in a joint venture with US-based

Kennametal Inc. However, in July

2007, Yash Birla Group acquired the

stake of Kennametal in the JV, and

Birla Kennametal was renamed as Birla

Precision Technologies Ltd (BPTL).

OVERCOMING HARDSHIPS FACEDThe initial years were tough and we

faced a lot of issues while establishing

the company in Aurangabad.

Connectivity was a major issue and

employees had to walk from distant

places to office. Issues such as lack

of infrastructure, non-availability

of skilled manpower and banking

facilities posed as major roadblocks.

However, in the last 10 years, the

city has witnessed more structured

development.

AIMING HIGH We are aiming towards achieving

a balanced growth and not just

standalone growth in one or two

segments. During the current year,

we plan to majorly invest in casting

machining and precision components

machining. As of now, our maximum

business comes from overseas and

so, we plan to enhance our domestic

market share. Since we are a

reputed name as far as quality is

concerned, there is a wide scope for

expansion in the domestic market.

This year, we are targeting 20% growth

over last year.

In a strategic move, one of the

oldest companies of the group, Indian

Tool Manufacturers (ITM) has been

merged with BPTL to further create

synergy among the group companies.

This year, ITM’s Cutting Tool

Division is celebrating its platinum

jubilee. A pioneer in manufacturing

high speed steel cutting tools in

India with an extensive distribution

network, ITM is synonymous

with high quality, high speed steel

tools including straight shank twist

drills, taper shank twist drills,

centre drills, masonry drills, milling

cutters, reamers and tool bits. Going

forward, we will also be venturing

more aggressively into carbide tool

manufacturing.

POISED FOR A BRIGHT FUTUREInitially, Aurangabad was known only

for its historical background, but over

time, the place has strongly emerged

as a major industrial hub. It has now

gained recognition as one of the most

attractive investment destinations

for domestic as well as international

companies. And it has ample potential

to grow further.

The place’s proximity to cities like

Mumbai, Pune and Nashik makes

it a strong contender for becoming

India’s leading investment destination.

The city has been home to various

major players till date and will surely

attract many more in years to come.

However for that to happen, the State

Government must come up with

aggressive policies to promote the city

as a serious industrial destination.

[email protected]

T

Aurangabad has ample potential to grow further

B Ravindra Naidu

Joint President, Birla Precision

Technologies Ltd

“Proximity to cities like Mumbai, Pune and Nashik provide Aurangabad with a very good potential for growth. The city has been home to various major indus-

trial players till date and will attract many more in years to come,” says B Ravindra Naidu, Joint President, Birla Precision Technologies Ltd, during a

tête-à-tête with Nishi Rath. Excerpts…


WAJIT ABRASIVES: A FORCE TO RECKON WITHSwajit Abrasives Pvt Ltd

was established in 2002

and owns popular brands

such as ABRACUT & TIGER of

coated abrasives in both resin (R/R)

& glue (RGR) bond. Since the

beginning, we have progressed rapidly

and currently boast of a state-of-the-

art coating plant for electro coating of

grains & ultramodern cloth processing

plant. During this journey, we have

successfully achieved the capacity to

manufacture 8 lakh sqmt of coated

abrasive cloth per annum. In order to

serve our clients better, we have started

offering customised services as well.

For that, a system, which can modify

our products so as to meet individual

requirements, has been put in place.

The innovative brains and an

aggressive marketing team has been

our core strength, which has led to

immense success while satisfying the

customers by means of producing

a quality product, and on-time

delivery at a competitive price. The

quality-driven environment, along with

able administration and appropriate

human resources development has

enabled Swajit to get an ISO 9002

certification for its conveyor chains

manufacturing facility.

Today, the company is well-placed

in domestic as well as overseas market

as far as manufacturing and supplying

of all critical application conveyor

chains, coated abrasives specialty

products and heat treatment facility

are concerned.

We, at Swajit, are committed to

our long-term mission of providing

quality and on-time delivery with total

customer satisfaction. Our client list

boasts of some prominent industrial

players such as Tata Motors Ltd,

Bharat Forge Co Ltd, Cummins Ltd,

Kirloskar Oil Engines Ltd, Mahindra

& Mahindra Ltd, Titan Watches Ltd

and Aurangabad Electricals Pvt Ltd,

among others.

THE INITIAL ROADBLOCKSInitially, we faced real tough times

in establishing the products and the

brand as well. The infrastructure (or

the lack of it) in Aurangabad did not

help either. However, we have come

a long way since then and are in the

process of expanding the business with

some huge investment in place. Going

forward, we will commission one

more production line as the company

is aiming at enhancing the overall

production capacity by about 150%.

Swajit has witnessed steady &

gradual growth in the past and

expects the same in future as well.

Talking about demand dynamics and

competition, it would be apt to say

that the demand will depend on the

industry trend. However, it is poised

to go up as the competition increases

with new players entering the market

and technological innovations playing

a key role.

AURANGABAD: POISED FOR A BIG LEAPIn the past one decade, the city

has witnessed some phenomenal

growth, which was beyond anybody’s

expectations. Looking at where

things currently stand, it could well

be asserted that the sky looks bright

for Aurangabad. As the companies

are looking to expand and there

is an increased focus on localising

products, investments in the region

will see a positive rise and employment

opportunities will also be immense.

This has also encouraged new age

entrepreneurs, who just have to keep

a few things in mind before starting

on their own firms. They should aim

at following fair and ethical business

firms and also focus on advanced

technology and diversified business.

[email protected]

S“Since there is an increased focus on localising products, investments in

the region will see a positive rise and employment opportunities will also be immense,” says Avinash Vishwasrao Chavan, Founder, Swajit Abrasives Pvt

Ltd during an interaction with Nishi Rath. Excerpts…

Looking at where things stand currently, the sky looks bright for Aurangabad

Avinash Vishwasrao Chavan,

Founder, Swajit Abrasives Pvt Ltd


AKING FORAY INTO INDIAIt was in 1991 when

Lombardini entered

India, riding on a tri-party

agreement with Piaggio

and Greaves. The agreement required

Lombardini to provide technical

know-how & support to these

companies. However, in 1998, the

company set up its light engines

manufacturing facility at Chikalthana

MIDC in Aurangabad. The

Lombardini Group was acquired by

Kohler Co, USA, in 2007. Since then,

its presence in Aurangabad has also

become a Kohler entity, producing

both light engines and generator sets

for Kohler Engines and Kohler Power

Systems.

SOME AREAS NEED IMPROVEMENTWay back in 1962, the brotherly duo

of Nanasaheb and Shrikant Bhogale

initiated a modern industrial culture

in Aurangabad with the launch of

Umasons, a medical equipment

manufacturing unit in Aurangpura.

Since then, the Marathwada region

has seen exponential growth and

today accounts for 3,000 industries,

including MSMEs, domestic as well as

multinational players. I feel good when

I come across budding entrepreneurs,

who want to grab opportunities with

both hands. For them, I would like

to quote Swami Vivekanand, “Arise,

awake and stop not till the goal is

reached.”

Aurangabad is one of the centrally

located cities with good connectivity

though there is still some scope for

improvement. For example, the

condition of roads, power for the

industries and rail network are some

of the problem areas. Another major

issue is the air connectivity. There is

an urgent need to increase the number

of flights connecting Aurangabad, not

only to Mumbai and Delhi, but also

to other locations as well.

GROWTH ON THE CARDSDuring a recent press conference,

Maharashtra Chief Minister Prithviraj

Chavan announced that 43 mega

projects would come up in Maharashtra.

Of the total, 13 would be major

projects with a collective investment

of over `10,000 crore that would be

located in Marathwada region. These

mega projects are expected to generate

around 26,000 jobs in the state.

Here, I would also like to add that

the socio-economic environment is an

important factor, which needs to be

studied before initiating a new project.

For example, we did a fantastic

study before starting the journey in

Aurangabad and therefore, have not

faced any trouble whatsoever.

I would like to add that this city

has a great future. It is strategically

located and movement in any direction

would be equidistant. With such a

strong geographic location, I am sure

that Aurangabad will soon emerge as

the most promising city for industrial

development in the Delhi-Mumbai

Industrial Corridor. It would not only

earn laurels/revenue for the country,

but also for the people living in and

around Aurangabad.

FUTURE PLANSWe, indeed, have an ambitious plan for

the future since we, as an organisation,

are here to stay and grow by leaps and

bounds. Currently, we manufacture

only a handful of engine and generator

set variants. Going forward, the plan

is to localise the products as per the

domestic requirements. Plus, we

would develop more such products,

which would be beneficial for both the

Indian as well as the global markets.

Talks are already on and once we get

a go-ahead from our headquarter in

the US, announcement will be made

regarding the investments and various

other aspects.

[email protected]

M“It would not only earn laurels/revenue for the country, but also for the

people living in and around Aurangabad,” says Sudipto Mukherjee GM –Marketing, Lombardini-Kohler, in a tête-à-tête with Nishi Rath. Excerpts…

Aurangabad will truly emerge once the Delhi-Mumbai Industrial Corridor is ready

Sudipto Mukherjee,

GM – Marketing, Lombardini-Kohler

30 PRODUCT UPDATE SEARCH - Supplement June 2012

This section gives information about products, equipment and services available in the market. If you know what you want. . .refer to Product Index on Page 34 to find it quickly

� PLASTIC REEL CORE PLUGS

These core plugs are manufactured using

high-grade raw materials for providing

quality products to customers. Th e plastic

reel core plugs are widely used in paper mills for

lowering their production costs. Th ese are also used

in the casting process to form internal cavities in

the engine block or cylinder head. Th e range of

plastic reel core plugs is known for its easy

installation and replacement features.

Techno Plast Products

Hyderabad - Andhra Pradesh

Tel: 040-23090021

Mob: 09849657536


Website: www.technoplastcomponents.tradeindia.com

� LASER MARKING SYSTEMS

These machines can

automatically load/unload

materials, mark on the fl y

and dummy beam. Th e auto focus

arrangement takes materials

precisely to the focus of the beam

and ensures same quality for each

marking. Th ese laser marking

machines use 100 W of power to

mark, cut and engrave nearly all the metals.

Suresh Indu Laser Pvt Ltd

Pune - Maharashtra

Tel: 020-56214374

Email: [email protected], Website: www.silasers.com

� ELECTRONIC SAFETY SENSORS

The RSS-36 electronic safety sensors

are equipped with the RFID

technology, with diff erent variants,

each with diff erent coding possibilities. Th ese

sensors also feature all well-known advantages

of the CSS technology. A second version only

accepts the target, which was taught during

the fi rst start-up. In the third version, the teach-in process can be

repeated any number of times.

Schmersal India Pvt Ltd

Pune - Maharashtra

Tel: 020-26741000, Mob: 09595457878

Email: [email protected], Website: www.schmersal.in

� LINEAR POTENTIOMETER

The Unilin–WT22 is push rod

type linear potentiometer

having both side rod end

bearing and one meter Tefl on lead wires with silicon rubber sleeve

for reliable and fl exible connection. It is available in diff erent stroke

lengths from 50 mm to 300 mm. Th is model is specially developed

for the injection molding machine application. However it is also

suited for general precision applications. Th e sensors use a long-life

(>2 million cycles) with conductive plastic resistance element having

linearity up to ±0.1 per cent and very low noise in output.

Uni-Automation (India) Pvt Ltd

Pune - Maharashtra

Tel: 020-24420890, Mob: 09225573521

Email: [email protected], Website: www.uniautomation.com

� LIGHT INTENSITY MEASURING INSTRUMENT

The sensor of the light intensity measuring

instrument (testo 540) is adapted to the spectral

sensitivity of the eye. Th is is ideal for the

measurement of light intensity. Th e hold function allows

an easy readout of the measurement values. Maximum

and minimum values are displayed at the press of a

button. Th is is very handy, small and easy to operate.

Some of the specifi cations are hold function and maximum/

minimum values, including calibration protocol, protective cap for

safe storage, including wrist strap and belt holder, sensor adapted to

spectral sensitivity of the eye, and backlit display.

Testo India Pvt Ltd

Pune - Maharashtra

Tel: 020-65600203, Mob: 09375346186

Email: [email protected], Website: www.testo-india.com

� ROCK BOLTS

Roofex energy-absorbing rock bolts are

unique, highly advanced bolts that can

absorb rock movements with excellent

predictability. Th ese rock bolts are designed to

dissipate and control large amounts of energy

liberated from the rock mass deformation

process. Th e rock bolts are designed to accommodate the whole

spectrum of rock mass behavior as a solution for potentially extreme

conditions occurring at depth.

Atlas Copco (India) Ltd

Pune - Maharashtra

Tel: 020-30722222

Email: [email protected], Website: www.atlascopco.com

31PRODUCT UPDATESEARCH - Supplement June 2012

� RFID TECHNOLOGY

Auto-ID procedures for

the automatic

identifi cation of

components, workpiece carriers

or tools have been used in

manufacturing for a long time.

One of the main advantages of

RFID as opposed to the optical

Auto-ID procedures is that users can read the authenticity features

and also rewrite them to a data carrier.

Turck India Automation Pvt Ltd

Pune - Maharashtra

Tel: 020-25630039


Website: www.turck.co.in

� TIME SWITCH

This time switch Astro® Mini is enabled

with attributes such as trigger on

sunrise/set and twilight rise/set, off set,

off hours and weekly off features with 6 years

battery reserve for high reliability. Simple reset,

easy manual override, DST feature and ease of

programming with 12/24 hour formats is versatile for lighting

automation applications like lighting of streets, gardens, townships,

building apartments, advertising displays and glow signs.

General Industrial Controls Private Limited

Bhosari - Pune

Tel: 020- 30680003

Email: [email protected], Website: www.gicindia.com

� TESTING SYSTEM

This testing system ZWL

9200 adopts the

advanced fast spectrum

analysis system and has powerful

in-built power supply with

external power supply. It can

accurately test the optical colour

and electric parameter for LED

luminaries, modules and lamps in short time. Th is is applicable for

various kinds of lamps, diff erent fi xtures and is made compatible

for LED testing also. Th is provides highly effi cient, user friendly

interface and manual operation module. Th e high precision testing

is done for optical parameters and other relevant parameters.

Agate & Agate Marketing Resources ( I ) Pvt. Ltd

Kothrud - Pune

Tel: 020 - 25469864

Email: [email protected], Website: www.smt-india.com

32 PRODUCT UPDATE SEARCH - Supplement June 2012

� MOBILE STORAGE SYSTEMS

These compactors are assisted

mobile systems, which give

users movement for the easiest

access to stored materials of any other mechanical system made. Th e

remarkable ease of movement is due to their rugged and durable

performance engineering. Comfort and ease of use are enhanced by

ergonomically designed, soft-touch, three spoke rotating handles.

Su-Mech Storage Systems Pvt Ltd

Pune - Maharashtra

Tel: 020-67263800

Email: [email protected], Website: www.su-mech.com

� LOW-EMISSION TAPES

The LE-series (low emission),

high-performance adhesive

tapes meet the requirements

for low emission values. Th ese tapes

fulfi ll VDA 275, VDA 200, DIN

75201A ISO 6452, DIN 75201B ISO 6452, solvent-free pure acrylic

adhesive, free from resins & plasticisers, etc. Th e tapes are available

with a variety of diff erent carrier systems.

Lohmann Adhesive Tapes India Pvt Ltd

Pune - Maharashtra

Tel: 020-30220899, Mob: 09962547906

Email: [email protected], Website: www.lohmann-tapes.com

The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of

SEARCH

� BATTERY MAGNETS

These consist of electromagnet, battery

and control units with integrated

charging set. Th e outstanding design

characteristics make them highly versatile.

Benefi ts include: compact design, with IP53 enclosure, also suitable

for outdoor operation, loads are always picked up safely, etc. Th e

battery magnets are ideal solutions wherever one has to transport

magnetisable loads safely & effi ciently.

Demag Cranes & Components (I) Pvt Ltd

Pune - Maharashtra

Tel: 0213-614200

Email: [email protected], Website: www.demagcranes.co.in

� CONFIGURABLE SAFETY RELAYS

These confi gurable safety relays

(PNOZmulti Mini) are also

available in modular and

expandable versions. Confi gurable control

systems bridge the gap between classic

safety relays and programmable control

systems. Th e confi gurable control system

PNOZmulti off ers at least 40 per cent

potential savings in all engineering phases. Inputs and outputs can

be freely confi gured.

Pilz India Pvt Ltd

Pune, Maharashtra

Tel: 020-24213994, Mob: 09823181112

Email: [email protected], Website: www.pilz.in

� LASER CUTTING SYSTEMS

These TLM series 5-axis laser

cutting systems simplify the

processing of 3-dimensional

workpieces to perform any number of

cutting tasks. Run programs from G code

or an NTC-developed simplifi ed coding process. A simple-to-use

teach-mode makes cutting path generation easy and takes the

guesswork out of virtually all 3-dimensional cutting applications.

Laser Technologies Pvt Ltd

Pune, Maharashtra

Tel: 020-65208337, Mob: 08080593077

Email: [email protected], Website: www.lasertechnik.co.in

34 PRODUCT & ADVERTISERS’ INDEX SEARCH - Supplement June 2012

Our consistent advertisers

Pg No Advertiser Tel. No. E-Mail Website

FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover

Abrasive rolls .......................................................................... 9

Air vent valves ...................................................................BIC

Automation systems ................................................................ 7

Balancing machine ............................................................. FIC

Ball valve ...........................................................................BIC

Ball valves .........................................................................BIC

Battery magnets .................................................................... 32

Brake motor .................................................11, 15, 21, 29, BC

Configurable safety relays ..................................................... 32

Electronic switches ............................................................... 31

Energy consultancy service ................................................... 33

Flame proof motor ......................................11, 15, 21, 29, BC

Flange mounting motor ...............................11, 15, 21, 29, BC

Flap wheels ............................................................................. 9

Geared motor ...............................................11, 15, 21, 29, BC

Insulating material solutions ................................................. 4

KEC AC motor ...........................................11, 15, 21, 29, BC

KEC DC motor ..........................................11, 15, 21, 29, BC

Laser cutting systems ............................................................ 32

Low-emission tapes .............................................................. 32

Material handling equiptment ............................................. 7

Measuring instrument ....................................................... FIC

Mobile storage systems ......................................................... 32

Mops ....................................................................................... 9

Motors .........................................................11, 15, 21, 29, BC

Precision plastic moulded products ...................................... 32

Pressure gauges .................................................................BIC

Pressure reducing valves .....................................................BIC

Proximity switches ................................................................ 31

RFID technology .................................................................. 31

Shrinking technology ......................................................... FIC

Slipring crane duty motor ...........................11, 15, 21, 29, BC

Smooth starters ..................................................................... 31

Testing system ...................................................................... 31

Time switch .......................................................................... 31

Tool holder ........................................................................ FIC

Tool logistics system .......................................................... FIC

Products Pg No Products Pg No

4 DSM India Pvt Ltd +91-20-66430800 [email protected] www.dsmep.com

FIC Haimer India Pvt.Ltd. +91-20-66 75-05 51 [email protected] www.haimer.in

31 Jayashree Electron Pvt Ltd +91-20-27130295 [email protected] www.jayashree.co.in

BIC K P Sales +91-240-2553769 [email protected] www.kpsales.in

32 Kumbhojkar Plastic Moulders +91-20-24450055 [email protected] www.kumbhojkarplastics.com

7 Om Sai Engineers +91-240-2556225 [email protected] www.omsaiengg.com

33 Perennial Technologies Pvt Ltd +91-20-22953511 [email protected] www.perennial.co.in

9 Swajit Abrasives Pvt Ltd +91-240- 2553787 [email protected] www.abracutindia.com

11; 15; 21; 29; BC The Indian Electric Co +91-20-66865200 [email protected] www.indianelectric.com

Looking For A Specific Product?Searching and sourcing products were never so easy.

Just type SRCH (space) Product Name

and send it to 51818eg. SRCH Pump and send it to 51818

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on 22nd & 23rd of Every Previous Month Date Of Publication: 18th of Every Month

36

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search - investment destination - aurangabad - supplement - june 2012

Documents

economy of aurangabad

crore siemens

process development

new plant

sustainable development

development map

greenfield facility

project location