The most effective method to Produce a Make in India Example of overcoming adversity

Baba Kalyani, the Administrator and Overseeing Overseer of Bharat Produce Restricted was the Senior member's Speaker in August 2018. Milind Sohoni, Teacher of Tasks The board and Representative Dignitary, Staff Improvement at the Indian Institute of Business, found Baba Kalyani to examine the examples for a Make in India fabricating transformation from the Bharat Manufacture example of overcoming adversity.

Baba Kalyani, the Chairman and Managing Director of Bharat Forge Limited, was the Dean’s Speaker in August 2018. Milind Sohoni, Professor of Operations Management and Deputy Dean, Faculty Development at the Indian School of Business, caught up with Baba Kalyani to discuss the lessons for a Make in India manufacturing revolution from the Bharat Forge success story.

Milind Sohoni: You have been closely associated with the manufacturing sector for a very long time. Baba Kalyani: Till the 1980s and 1990s, we were a typical Indian manufacturing company burdened by regulation, licensing, and high costs for capital and materials.

So, like everybody, we deployed a business model that was based on low capital, high manpower, and low technology. We offered voluntary retirement to about 2000 of our blue-collared employees and hired 800 engineers in their place. The forging business worldwide is not a very big business. We at Bharat Forge used high technology and innovation to create new businesses and product capabilities, for global markets.

As a result of that, we transformed into a technology-driven global leader in metal forming, having a transcontinental presence across ten manufacturing locations, serving several sectors including automotive, power, oil and gas, construction& mining, locomotive, marine, defense, and aerospace. We offer full-service supply capability worldwide.

We acquired the RUAG plant from Switzerland and established an ordnance manufacturing facility in Pune. We interacted with various designers in this domain and also with experts from Cranfield University and the British School of Artillery in the United Kingdom. The entire weapon system was developed and proof-tested in a record period of less than two years.

The Government of India showcased the system in the Republic Day parade in January 2016. You spoke a bit earlier about developing and manufacturing the Howitzer gun. These could include artillery, ships, missiles, and ammunition. Our cutting-edge research facilities include 3D printing, Metal Injection Moulding, Ballistic Simulation as well as instruments to measure firing pressure.

We also have jet engines for Unmanned Aerial Vehicles( UAVs) and we have already produced three which are being rigorously tested. We can now perform ballistic simulations of shells firing at a speed of 1000 meters per second. That will drive faster innovation. The Indian School of Business( ISB) is a good example.

The way in which Indians today have overwhelmingly adopted smartphone technologies in such a short period was once unimaginable. These challenges will only rise with time owing to the volatility in technology, geopolitics, and global protectionist attitudes. Until a few years ago, our economy lacked a level playing field where innovations could compete and disrupt longstanding practices.

If we transform India into an innovation-driven economy, it can become a prosperous nation with a large number of medium-income people. Or are we making reasonable progress in shaping India into an attractive manufacturing destination?

I think India is getting there step by step. Unfortunately, we got saddled with issues related to Non - Performing Assets( NPAs). It is unbelievable that gross NPAs are now close to Rs 10 lakh crores. With reasonable monsoons, our agricultural sector should do reasonably well. I think there will be fewer blue-collar jobs on the factory shop floor.

The very few who remain here end up working for consulting companies rather than manufacturing companies or financial services. The Ministry of Skill Development and Entrepreneurship set up by Prime Minister Modi is doing some work in this direction. You are currently heading a government panel to study the Special Economic Zones( SEZ) policy. SEZs in India first started with tax breaks as the key feature.

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