Q. BFW has gained substantial market share in Indian machine tool industry, please elucidate the success story of the company?
We started our journey in 1961 as a collaboration of Kothari Group and Fritz Werner Germany. We have been at the heart of Manufacturing Industry since last 55+ years. Strong, rigid and reliable machines have been the foundation of our products. Over years we have been closely working with our clients – understanding their needs and meticulously embedding them in our products and services. Customer Centricity is the core of BFW organization – our world revolves around our customers. Our organization DNA is woven with structured product development, Innovation, process driven manufacturing. We are a learning organization with passionate team focused on clients.
Over recent years our thrust on innovation has significantly increased. We are bringing out new offering and are acquiring new technologies – organically and inorganically. Our capability to respond with customized solutions is one of the aspects, which have added value to customer.
Today the width of BFW product-range to meet metal-cutting products – Milling, Turning, Multitasking and customized solutions – is unmatched by any other Indian manufacturer. Our drive towards more innovation & more customer-value creation will ensure that it stay that way.
We are grateful to our customers who have consistently supported us, presented us new challenges to work on and trusted us to be a part of their manufacturing success. Substantial gains in Market share is a result of all of above
Q. Please brief us about the exports and overseas operations & what are the global alliances that has been made in order to out-front the competition?
BFW has been active in select markets & geographies. We have also been a ‘supply partner of choice’ for reputed Global Automotive OEMs like Renault, Honda and Toyota, wherein we have supplied machines to their multiple locations in India & overseas.
In the recent past, we have been successful in scripting the acquisition of Matec, Germany – a brand associated with the sophisticated 5-axis Travelling column enabled machining technology, and also a strategic alliance with SPINNER – a reputed brand of VMCs and Turning Centers, to distribute their Turning Centre range in India. Both relationships have been formed with companies from Germany – the land of meticulous engineering.
BFW has been the proud recipient of EEPC (Engineering Exports Promotion Council) awards for Outstanding Export performance for three consecutive years of 2013, 2014 and 2015.
Q. What are the market prospects for the BFW products in India and how do you plan to position these products?
Market prospects for BFW products get defined at product development stage, even before it comes out of the factory.
BFW has the right balance of ‘MADE TO STOCK’ and ‘MADE TO ORDER’ machines, and are being positioned depending on the market segments & industrial sectors that they are being allocated to. For example – Accutron TSP – 350V has been aptly positioned as the machine providing ‘Precision with Agility’ as it is meant for the mass-production automotive industry; which has a large of number of ‘repeatable’ parts to be manufactured within short-cycle times.
We have top-of the end HMC product- platforms like ORION, which has set new bench marks in HMC specifications and performance and is the result of Indo-German engineering excellence for clients seeking cutting edge performance. Orion-series will be instrumental in bringing true-blooded HMC impact on shop-floor productivity and performance.
For Die & Mould segment, we have KRYPTON-series to deal with challenges related to hard-part machining – its bridge-type modular construction will ensure that the machine will be a racehorse for true Die & mould machining performance, and will be front-runner for ‘MADE IN INDIA’ quality machines in the near future.
We have recently entered in Horizontal Turning product-line and based on the encouraging response – we will continue to expand our offerings in it. BFW’s Performance Turning Solutions- the PL-series; are apt solutions for meeting the demanding requirement for the heavy-duty turned components user industries, and represent a differentiated product range. We are the largest Indian Producers of Vertical Turning Lathes and our product mix of pure turning- and turn Mill technology is well accepted.
Q. Can you brief us about the marketing strategies that were applied in order to stand out in the competition of machine tool industry?
I believe that ‘innovation’ and “Meticulous Product strategies “are the Key issues. – Whether it is in products, “Go to Market strategy “, positioning of products and communicating to customers about the products. ‘Innovation’ for me is ‘treading the less-trodden path, believing the unbelievable, and achieving what is perceived impossible’ – it is the culmination of human efforts, that may or may not result in immediate value creation; but definitely has the potential for value creation in future.
Q. Please elucidate in brief about the BFW’s infrastructure & what are the measure that are being taken from the product manufacturing to distribution?
BFW has always resorted to in-house manufacturing of critical to quality components to drive product quality and bring down costs. We have number of precision mother machines for structural parts. With our Foundry, we are fully backward integrated for all structural parts – from casting to finishing. We also have our own spindle manufacturing, assembly and testing facility.
For other components, subsystems and subassemblies we have closely knit network of our supply chain partners, with whom we work closely. For bought out components we have always sourced them from only the best global and domestic brands in business.
With reference to distribution – domestically BFW has a wide distribution network through its 10 Regional offices and 21 channel partners; BFW are well covered in terms of market penetration for Indian geography. Overseas BFW is already present through its international partners in 18 countries and currently we are planning to increase our depth in select geographies.
Q. Brief us about the R&D and Quality policy for your business?
Being a leader, I believe- core R and D is key for us to continue to create a sustainable differentiation. R&D policy of the company is to develop products for the manufacturing industry for application that are developing / expected to develop at least 5-8 years into the future.
With the establishment of Dr. Kalam Center of Innovation, BFW will conduct core research & development into energy efficient machines & alternative materials etc, which would change the dynamics of metal-related manufacturing industries in the years to come. Quality policy of BFW is to ensure quality at every step of the machine production and to ensure complete waste elimination through ‘first time right – every-time’.
Q. Please comment on the current machine tool scenario in India?
The Machine tool scenario in Indian consists of few organized companies and many small regional players. According to IMTMA, the Indian Machine tool Industry has around 1000 units in the production of machine tools, accessories/attachments, subsystems and parts. Of these, around 25 in the large scale sector account for 70 percent of the turnover and the rest are in the SME sector of the industry.
While the demand for machine tools is chiefly driven from automotive industry, demand from other industrial sectors, will definitely catch up in due course of time, and it is therefore more beneficial to keep a balanced customer chart, to ensure less over-dependence on any particular sector. I always believe that industry is still on its growth path, and several years away from maturing into a full-fledged industry – hence the opportunities for already established players like BFW is limitless.
Q. Could you brief us on Indian & Global perspective of machine tool industry? What are the distinguishing factors?
As per domestic perspective, Indian machine tool industry is not able to even meet 50% of the demand, that itself illustrates the huge window of opportunity that exists for all of us. Opportunities for growth are immense in the Defence & Aerospace sector and with 100% FDI permitted in these sector, we see growth of both markets, which would be beneficial to the industry – the key challenge would be to increase competitiveness vis-à -vis imported machines; and Indian industry should now gear up-to meets these challenges through an entirely innovation driven approach.
Globally- machine tools that are MADE IN INDIA have yet to make their mark in a meaningful manner, and hence exports of machine tools from India have remained a small percentage of the Global machine tool consumption. BFW is able to establish its global footprints in 18 countries. However there is lot of work that needs to happen in enhancing Brand BFW globally. we will continue to strengthen this activity through slew of initiatives and through our Germany subsidiary – matec.
Q. What are the key technological trends that are driving machine tool industry?
Key technology trends driving the machine tool industry today is the proliferation of Internet & Computing Technology in the workplace arena through Industrie 4.0 & the Industrial Internet Network that will ensure Machine-to-Machine communication and result in Smart Machines & Smart Workshops.Another key trend is the development of 3D printers (additive machining) and its potential to replace subtractive processes like milling and turning in the future course.
BFW has been one among the Indian Machine tool Manufacturers to take note of these developments, and will come up with a suitable product range in this area in due course.
Q. How do yourperceive the future of the Indian machine tool industry?
The success of the Indian machine tool industry in general depends upon the success of its user industries like automotive, aerospace, die and mould, general engineering etc.
In future we see a more advancing user industry, will ensure radical changes in production range and operational methodology in the Indian machine tool industry, and we are well enabled & ready to embrace the change, in keeping with the developments.
Q. How far the factors like government norms, excise duty, taxation, exim policies are affecting your business?
Government norms like Excise duty, taxation & EXIM policies do have a major impact on operational performance & profit realization for each business.
We expect GST tax regime expected to be realized, to ease our existing tax burdens and allow useful funds to be utilized for R&D and Innovation purpose – the Indian Industry today is one of the most heavily taxed globally, and any lightening of the tax burdens would definitely be a welcome move.
Further EXIM policies should be more pro-active & not leave demand generation to the individual companies alone – on this context I believe MAKE IN INDIA is definitely a positive step, as it paints an optimistic picture of the Indian Industry to match up to global requirements – I see that better progress on this particular area will lead to the setting up of a more robust and proactive supply chain, which is weak presently, which will augur well for the industry.
We would also like to see more fund- allocation to the industry for ‘R&D’ activities; which will help to increase competitiveness of the Indian players, by matching upto global brands on most parameters.
Q. What are the best possible remedies you can advise in order to maintain the high profitability in the shrinking margins market of India?
The best possible remedy is to strike the right balance between a mass markets (highly competitive) and niche ones (least competitive); by delivering products + feature innovation to enable better value creation & thus better price realization from customers.
At the same time there should be a thrust on cost reduction by standardizing machine through modular constructions, and ensuring process innovation through relentless reduction of wastes & increased people effectiveness through training & development.
Shrinking margins would also be eliminated through entering the ‘volumes’ game by ensuring that low margins get amplified several times to ensure better realization.
Q. What is your vision for BFW?
I would like my company – BFW to transform itself into one of the most loved & respected companies for all its stake-holders – vendors, customers, employees and shareholders.
Q. Please address the issues that are affecting the machine tool industry?
The key issues address the industry today is the challenge to rise against the odds – fluctuating demand cycles, dearth of skilled manpower in design & hi-tech engineering, weak logistical infrastructure and an overbearing reliance on imported bought-outs; that has ensured ‘design to market’ turnaround time is the highest in India vis-à -vis most other countries.
The only solution to most problems faced by the industry is to follow an ‘innovation-driven’ approach, and BFW is determined to swim against the tide of a weak Index of Industrial Production (IIP) by adopting this approach.
