Chennai: At a time when the transportation sector is moving towards more stringent emission norms, vehicle manufacturers have been forced to incorporate advancements in their products to make them adhere to new standards.
But this transition, though good for the environment, has put a question mark on the future of many businesses both large and small that rely on older technologies.
One such firm is Ucal Fuel Systems Ltd, whose primary business is the manufacture of carburettors for motorcycles. With the advent of modern adn efficient Electronic Fuel Injection (EFI) systems, do carburettors still stand a chance?
This reporter caught up with Ucal Fuel Systems Ltd independent director, V Sumantran to find out.
Here are excerpts from the conversation:
Q: With BS VI norms round-the-corner and cheaper EFI systems coming up, do you think there is still a future for traditional carburettors?
A: Absolutely. Though EFI systems have become cheaper, they still haven’t come close to the pricing of carburettors. Also, when it comes to emission norms, the quality of fuels and various other factors also play a role. So, with better fuel management, carburettors can also be made to achieve the prescribed emission standards.
Q: How will Ucal face the advent of EFI systems? Are there any plans to manufacture EFI systems in place of carburettors?
A: As of now, we don’t have any plans for manufacturing EFI systems. But our R&D department has manufactured a new carburettor that can challenge EFI. We have named it ‘Smart Carburetor’ and it acts like an EFI. As we are in the testing stage, I cannot reveal much about this development now. But it will be launched when BS VI norms kick-in.
Q: You have a monopoly in this segment in India. What is your EBIDTA and CAGR in the last fiscal?
A: We are no longer enjoying a monopoly in the country, as many international brands have set base here. But still, our sales has been positive and we have received an overwhelming response from India customers which is one of the largest two-wheeler markets in the world. Both EBIDTA and CAGR has been positive for us in the last fiscal.
Q: Has the auto sector recovered from the initial GST hiccups in this segment?
A: GST is indeed an effective and advantageous tool whose implementation has streamlined our businesses now. Almost, all initial problems have been sorted out. In fact, GST has established transparency in businesses with steady cash inflow to the government for the welfare of the country.
Q: As a home-grown manufacturer, what do you think is the need of the hour for industrial growth in India?
A: There are four aspects which we should focus on in the coming days. First, the government should set up National Investment and Manufacturing Zones (NIMZs) across the country where both industries and training academies culminate. While there are a lot of opportunities still available, what is lacking is a trained workforce. NIMZs could address this drawback. Second, firms should implement ‘Industry 4.0’ as soon as possible and the government should adopt the elements of it. India desperately needs 12-14 per cent growth in the next fiscal to be among the top countries of the world. Third, industries should shrink to compact footprint without compromising on efficiency. Finally, firms should no longer hire people based on their academic performance but hire employees based on their attitude and train them for skills.
Q: What do customers want from their purchases in the two-wheeler industry?
A: Well, it’s nothing else other than creativity. You can see the success of lifestyle brands like Royal Enfield which offer a variety of customisation options for their customers. Though predominantly mere accessories, these customisations have created new business entities for such brands. A report says, in the United States, 40 per cent of the millennials have tattoos which show they crave for uniqueness. Same applies for motorcycles. Thorough modifications will also take centre-stage in the near future.
Q: As an OEM, you have associations with SMEs. How can they improve quality without compromising on productivity?
A: This can be achieved only through startups and technologies. SMEs should embrace startups and try adopting what they have invented on a trial basis. They should no longer depend on big industries’ business models for improvement in manufacturing processes. But at the same time, large firms should not shrug off their should when SMEs approach for help. Maruti Suzuki did a fantastic job when it comes to nurturing SMEs. Now the brand has top notch products with high quality.
| A summit on the line |
| Sumantran was also a part of the 12th edition of Indian Machine Tool Manufacturers Associations (IMTMA) two-day National Productivity Summit that concluded in the city on Saturday. The summit was inaugurated by him along with Murugappa Group executive chairman M M Murugappan.
It enabled the delegates to learn about the best shop floor practices through plant visits, insights from prominent industry experts on productivity gains and case studies. IMTMA president P Ramadas and CEO V Anbu were also present. |