IT training OEM update TruePDF 01 march 2019

MAHENG/2009/33944
Vol 10 Issue 9 • Pages 64 • Mumbai • ISSN: 2456-7418
March 1, 2019 • Rs. 200 • www.oemupdate.com

OEM UPDATE

Also read:
Union Budget 2019: Reassuring
the MSME sector
Healthy ‘money’ concerns of
machine tool industry
Robotic and laser welding: Scaling
up the SME sector

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OEM Update

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The survival of SME & MSME
SME &MSME sector will act as a catalyst to bringabout this socio-economic
transformation. Here, is a quick analysis on what it takes to be a survivor like
the SME & MSME sector.

10

CONTENTS
FEATURES
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4

12

Union Budget 2019: Reassuring the MSME sector
Union Budget 2019 is out!. Let us have a look at what the
industry peeps think about it!

18

Healthy ‘money’ concerns of machine tool industry
An industry analysis on what is going wrong on the
‘financial’ front and what needs to be done to strengthen

the financial status of the machine tool industry

24
Human-Robot environment a positive step ahead
An interview with NS Madhusudhanan, Senior ManagerRobotics Business Development, Factory Automation &
Industrial Division, Mitsubishi Electric India Pvt Ltd

26
Automated welding taking on added importance
An industry analysis on what parameters goes into
making welding an automated and intelligent process

28
Efficiency won’t come cheap
An interview with Philippe Selot, Manager- Marketing
Communication, United Grinding

30
Next-gen automation in alignment
with Industry 4.0
An interview with Ramji Singh, Vice President-Sales &
Marketing, Schmersal India Pvt Ltd

32
Robotic and laser welding: Scaling up
the SME sector
An interview with Soumitra Kulkarni,
Director, Swami Samarth Electronics

36

Welding and cutting thrusting towards Industry 4.0
An analysis on the biggest trends and risk
assessments in the welding and cutting industry.

March 2019 n OEM Update


Our latest product launch features a range of tools designed to support
high quality, repeatable performance in difficult conditions. This includes
a new family of economical milling tools for die and mold applications,
high performance grades for milling hard materials, a wear resistant grade
for precise thread turning and new solid carbide drills for stainless steel.
Simply Reliable.

find out

mor e

!

Dormer Tools India Private Limited
308-B, 3rd Floor, Southern Park, Saket District Centre, New Delhi -110017
Email: , Phone: +91 11 46015686, www.dormerpramet.com


Quick update

Dormer Pramet acquires US based
Wetmore Tool and Engineering

D

Pictured (From left to
right): Jerome David
(CEO, Wetmore Tool
and Engineering),
Filippo Mauri
(business controller,
Dormer Pramet),
Stefan Steenstrup
(president, Dormer
Pramet), Cameron
Reilly (managing
director, Corridor
Capital) and Martin
Sehnal (program
operations manager,
Dormer Pramet North
America).

ormer Pramet has acquired
Wetmore
Tool
and
Engineering, a privately-owned
US-based
manufacturer
of
customer specified HSS and solid
carbide cutting tools. Based in

Chino, California, Wetmore Tool
and Engineering is one of the
leading manufacturers of adaptive
shank drill technology, as well
as fasteners, reamers and rivet
shavers. The company specialises in cutting tools for handheld skin drilling applications performed by several global
aerospace organisations.
The acquisition significantly strengthens Dormer Pramet’s
position and product offer within the aerospace industry,
particularly in markets such as the US, Brazil, Canada, China,
France, Italy and UK.
Stefan Steenstrup, President, of Dormer Pramet, said, “I
am very pleased to have reached an agreement to acquire
Wetmore Tool and Engineering and we welcome them into
the Dormer Pramet family. Wetmore has, for more than
60 years, been a leading supplier of high quality cutting

Thank you for visiting us at IMTEX 2019

tools renowned for its precision and serviceability to the
aerospace industry. Combined with a pro-active approach
to customer service, this makes the company an excellent
fit both strategically and culturally with Dormer Pramet.”
Existing Wetmore customers will still receive the
high-quality products and services they have become
accustomed to. In addition, they will now have access to
Dormer Pramet’s extensive range of high quality solid and
indexable cutting tools.
Similarly, the Wetmore brand will become well-known
with Dormer Pramet customers around the world through

their established global distribution and sales network.
Jerome David, Chief Executive Officer said,” Wetmore Tool
and Engineering will continue in the position and play an
important role in overseeing the transition as a member of
Dormer Pramet’s senior management team.”
As part of the acquisition, the Wetmore brand becomes
a product brand of Dormer Pramet, alongside its current
Dormer, Pramet, Precision Twist Drill and Union Butterfield
assortments.
For more details, visit: www.dormerpramet.com

igus organises ‘i-connect’ meet for machine tool
and allied industries

i

gus conducted a customer meet ‘iConnect’ for machine
tool and allied industries. The event was started by Kevin
Knust, International Product Manager Chainflex – igus
Germany, Deepak Paul, Managing Director-igus India and
Santhosh Jacob, Director- igus India.

“iconnect” Customer Meet

Mime Performance showcasing igus services: Reduces cost, efforts and save your
precious times

6

This event was attended by approximate 220 people from

companies like AMS (Ace Manufacturing Systems Limited),
BFW (Bharat Fritz Werner Limited), Lakshmi Machine
Works Limited, Jyoti CNC Automation Ltd, Pari Robotics,
Sahajanand Laser Technology Limited, Cosmos Impex
India Pvt Ltd, Mac Power CNC Machines Pvt Ltd, Precihole
Machine Tool Pvt Ltd and many more to count on.
The key message, which was conveyed in the event was the
movement towards productivity and lean in production,
highlighting how igus ready chains and ready systems
(linear guides) are ready to support Indian manufacturing
industry to become lean. igus used an interesting mime
show to emphasis. “How time can be saved, efforts can
be reduced, and cost can be effective by using igus ready
chains (which are ready to install and assembled ready
products from igus for all its customers).”

March 2019 n OEM Update



Quick update

LANXESS expands range of membranes for
reverse osmosis
monodisperse Lewatit ion exchange resins provides high
quality produced water at lower operational cost.
With an average salt rejection of 99.7 per cent and high
permeability, the new product types are a further development
of the high cross-linked polyamide membrane which LANXESS
launched in 2012. Controlling the degree of polyamide crosslinking during production process provides a small effective

“pore size” that results in high rejection of solutes, regardless
their charge. “By optimisation of the process, the flux could be
improved without compromising permeate quality. Therefore,
high rejection, even at changing feed parameters like pH or
salinity, can be achieved at high flux rate,” explains Dr. Jens
Lipnizki, head of Technical Marketing Membranes in the Liquid
Purification Technologies business unit.

L

ANXESS is expanding its range of membrane elements
for reverse osmosis (RO). The new Lewabrane HP (high
performance) series comprises elements that consist
of an enhanced brackish water membrane to serve
applications in which high rejection and energy efficiency
are important. Using the new types in combination with

LANXESS is showcasing its new Lewabrane HP membrane
elements for the first time at the Membrane Technology
Conference & Exposition, hosted by the American Membrane
Technology Association (AMTA) and the American Water
Works Association (AWWA) in New Orleans (LA), USA,
February 25 to 28, 2019.

4th ITS underlines opportunities in the Indian
tooling industry
share that in just four years, ITS has become one of the most
important a platform for the Indian tool room professionals for
knowledge sharing, understanding global trends, and building
acquaintances.Today, with an increase in demand from the

automotive and consumer industries, the Indian tooling sector
is witnessing rapid growth. The total tooling demand for FY17
in India was USD 2,070 million and is expected to reach USD
2,683 million by FY20 with the CAGR of 9 per cent. This is a
good time to be a tool maker in India; we must celebrate this
occasion and gear up for the future opportunities.”

I

ndia’s largest die mould gathering, the fourth edition of
International Tooling Summit (ITS) was inaugurated at
Hotel Hyatt Regency, Pune. Organised by Tool and Gauge
Manufacturers Association (TAGMA), the event revolved
around the theme, ‘Indian Tooling Industry: Forming and
Moulding the Future’. The two-day event saw four panel
discussions, 16 technical sessions, with about 40 speakers
discussing various topics that impact the Indian tooling
industry. Overall, the event aimed to highlight the latest
technology trends, business dynamics, opportunities,
challenges and the future outlook.

Welcoming over 400 professionals from around the world, D
K Sharma, President, TAGMA INDIA said, “I am delighted to
8

ITS 2019 was action-packed. There were thought-provoking
panel discussions and technical sessions strategically
organised on both the days. Topics like ‘OEMs and Tooling
Suppliers - Collaborative Approach’, ‘Subtractive & Additive
Technologies – How Will The Coexistence Emerge In Future?’‘

Emerging Sectors for Indian Tool Makers’ and ‘Changing
Dynamics in Auto Sector - Impact on Indian Tooling Industry’
were part of the panel discussions.
During these two days, various companies showcased their
state-of-the-art technology through technical sessions and
stalls at the event that targets companies and professionals
associated with die mould industry. The thought provoking
panel discussions also helped the professionals present at
the eventunderstand the latest in technology, customer
expectations, opportunities and the challenges in front of the
Indian tooling industry.
March 2019 n OEM Update


WE HAD A GREAT SHOW !

YOU CAME TO SEE US.
YOU SAW OUR SOLUTIONS.
YOU INSPIRED US.

Thank you!
Let’s stay connected !
Email us at :



Call us at

+91 7378 55 2000

:

Mastercam India
303 - Tower 1, World Trade Centre,
Kharadi, Pune - 411014, Maharashtra, India


Cover Story

The
survival
of SME &
MSME
I

ndia’s vibrant and dynamic micro, small and medium enterprises
(MSMEs) sector has been recognised as a catalyst inpromoting the
growth and development of the economy.For a country to grow,
the government should actively promote business enterprises. Among
business enterprises, the MSME deserve special attention. Though
MSMEs are small investment enterprises, but their contribution to the
Indian economy is very significant.
The SME and MSME sector account for over 37 per cent of India’s
GDP and a major chunk of employment. In an effort to push this
segment as an engine of growth. If MSME is pushed forward, then our
GDP can increase substantially. Only on that basis can we turn into a
developed country because after agriculture, small businesses account
for the biggest share in the economy. MSME constitute 45 per cent of
manufacturing, 42 per cent of exports and over 37 per cent of GDP.

SME &MSME sector will
act as a catalyst to bring
about this socio-economic
transformation. The growth
and development of MSME
sector is closely interwoven
with our quest forbecoming
a global economic power.
Here, is a quick analysis
on what it takes to be a
survivor like the SME &
MSME sector.

10

Collaboration with the overseas countries
Our MSME sector needs to update and upgrade its capacities - and
delivery high quality products and services at the competitive global
stage. The recent global interactions have created a new system for
bridging the industry academia divide - by enabling research institutions
to work together across borders and enable the MSME to use the new
technologies to enhance their own product and service mix.
Anupam Gupta, Chairman - Technology & Innovation, All India MSME
Association and Vice President - Programs, Leap Skills says, “A lot of the
recent global trade interactions have created an accessible forum for
the Indian MSME but we are yet to see many MSMEs take advantage
of this.” In terms of funding, a lot of global financial institutions have
shown interest and confidence in the Indian MSME and setup multiple
modes of capital infusion. A lot of this capital has already gone through
the system, and a lot more FDI/FII is waiting to be deployed in the

country. He adds, “It’s high time we are able to position ourselves and
tap into the capital base, enabling the growth capital to trickle down
the value chain and help the MSME.”
Dr. Avinash. K. Dalal (Nallawala), National President AIMA MSME says,
“Concept of Make in India was implemented to give employment to the
MSME sector and entrepreneurs. However, employment generation part
is still negligible.”Global countries have to enter into MoU with Indian
MSME industries regarding the buyback arrangement.

March 2019 n OEM Update


Cover Story

Is Make in India working in favour of SME&MSME
sector?
Dr.Dalalpoints that the progress of Make in India
campaign is very slow. He is of the opinion that many
of the MSME sectors are not aware of the Make in India
concept. Whenever a foreign enquiries come in, they
are received by the NSIC and are then passed on to the
MSMEs. This should change, according to Dr.Dalal.
MSMEs consistently help the NSIC with national as
well as international orders and organise exhibitions
for them.All international orders should directly reach
the MSME sector. Due to lack of transparencybetween
MSMEs, entrepreneurs and the foreign buyers, the
MSME sector are undergoing heavy losses.
The change bought about by SME/MSME
The MSME sector has not only stood its ground as

a backbone of the economy, but also helped India
stay afloat in tough global economic conditions. Our
uniqueness lies in the fact that we are adept at pivoting
and adapting to changing times and weathers.
Gupta says, “Most of the economic and trade reforms
of the last 5 years have hugely impacted the MSMEs,
and they have time and again come forward and
displayed the agility needed by the economic backbone
of a country which aims to be a global economic
powerhouse.”
Bamboo sector/coir sector, for example, will encourage
other micro & small entrepreneurs to be self-employed/
job provider to unskilled or semi-skilled villagers and
small town citizens. Dr.Dalalsays, “Bamboo and coir
board has to take initiative to educate and bring
awareness regarding the technology support to startup their base as micro and small units with the help
of MUDRA Bank. Ministry of MSME and NSIC needs to
chip in to help marketing the products.
Doubling of the GST exemption limit
While the GOI has enabled the MSME to become more
efficient and competitive, there have been teething
issues with regard to capital and financing options.
The MUDRA scheme found many takers but the
complexities involved at the local branch level created
confusion amongst the MSME. Gupta says, “The 59 min
loan scheme removes obstacles for the MSME to access
finance and capital but the reality lies in the fact that
businesses are not able to raise capital due to their
models and industry growth outlooks, rather than the
processes involved in raising capital.”

We hope more MSMEs come forward to access capital
in this manner, and are able to raise and deploy capital
in the most efficient manner possible. In today’s
Digital India, our MSME needs to be at the forefront of
using tech to smoothen its day to day operations and
transactions, adds Gupta.

March 2019 n OEM Update

Employment generation
part of Make in India is
still negligible
Dr. Avinash. K. Dalal (Nallawala),
National President AIMA MSME

It’s high time we position
ourselves and tap into the capital
base, enabling the growth capital
to trickle down the value chain
and help the MSME
Anupam Gupta, Chairman - Technology &
Innovation, All India MSME Association and Vice
President - Programs, Leap Skills

Despite
these
sectors
surviving
GST
and

demonetisation, they are yet to get the importance
they deserve considering the pivotal role they play.
In fact, India’s 60 million MSMEs are facing a credit
shortfall of a massive amount. Access to promised
finance has been one of the primary obstacles to
their growth. The Indian banking system has failed to
reach out to this segment with as much excitement
and focus as it should have. Lengthy documentation
procedure, non-optimised methods of credibility
verification, rigid payment structures etc. have
made formal sector borrowing a bad deal for the
sector.
Bridging the digital skill challenges
Several SMEs and MSMEs fight to fillthe digital skill
gap as technological transformation wave sweeps
through industries. Yet large organisations find it
difficult to fill the digital skill gap a complex job even
though they are armed with technology and training
departments.Lack of understanding in choosing the
right technology solution and low impact on overall
profitability are among the key challenges in adoption
of technologies followed by lack of skilled manpower
to operate technology, lack of trust in technology, and
the high cost of equipments.
The Chamber of Commerce, trade and industry has
to take initiative for bringing in awareness regarding
digital skill challenges by organising workshop with
the co-operation of Ministry of Skill Developmentand
Entrepreneurship,” suggests Dr.Dalal.
India’s SME sector seems to know where it stands

and appears ready to embrace technology to
upgrade its digital skills and recruit tech-savvy
talent. It is now up to the government and private
organisations to empower SMEs with a digital
workforce.

11


budget 2019

Union Budget 2019: Reassuring the MSME sector
Union Budget 2019 is out! Vision 2030 is all about boosting MSME sector, Next-Gen
infrastructure development and is said to be a progressive and pragmatic budget. Let us have a
look at what the industry peeps think about it!

Rajesh Ram Mishra,
President at India Electronics and
Semiconductor Association (IESA)

Mahendra Singhi, President, Cement
Manufacturers Association and MD &
CEO, Dalmia Cement (Bharat) Ltd

The budget is very encouraging and is indeed a welcome
move. The government has taken into consideration the
various sectors under organised and unorganised segments
of the economy, an attempt, largely to filter the benefits
of a burgeoning economy to the common sections of
society. The key highlight was the benefits to empower the

rural and agro economy.
While the budget did not include a singular and direct
vision for the cement sector and industry at large, some
key announcements on ancillary sectors will impact the
cement industry in a positive way. The Vision 2030 for
Next-Gen infrastructure development which mentioned
airports, inland waterways, road and rail development
will definitely translate into great opportunities for
infrastructure and construction business. This will also tie
into the government’s vision for employment increase as
India’s push for rapid infrastructure growth will position
the cement industry as an opportunity employer with
20,000 downstream jobs for every million ton of cement
produced. We are excited on the way forward and
congratulate the government on this optimistic move.

We feel this interim budget by Finance Minister is progressive
and inclusive. It focuses on leveraging new technologies to
build countrywide digital infrastructure, skill building, driving
growth of MSME segment.
• We applaud the vision to make India a $ 5 trillion
economies in the next five years. We feel a vibrant ESDM
sector will play a key role in realising this vision.
• The focus on National Program on AI will unleash large
opportunity in intelligent electronics and automation and
will create new business opportunity in nine focus areas.
• Participation of private sector in building products in
strategic electronics will get a big boost with `3,00,000
crores defence spending.
• Allocation for National Education Mission of `37,752

crores, coupled with the emphasis on skill development
will enable easier access to skilled workforce for ESDM
industry.
• The tax relief for people with income less than `5 lakhs
and interest rate subvention of 2 per cent will help startups, MSMEs in ESDM sector as it will relieve the pressure
on working capital.
• While intelligent electronics is bringing new opportunities
to enable large number of successful product companies
in India, we hope to see Angel Tax abolished for ESDM
start-ups and also suggest creation of a dedicated fund
to incentive R&D.

Suramya Nevatia,
CEO, Hind Rectifiers Ltd

Continued to 14

12

g

March 2019 n OEM Update


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budget 2019
Union Budget 2019: Reassuring the MSME sector
12 f

This is a comprehensive budget with an emphasis on
farmers, tax payers and infrastructure development.
The allocation of `64,970 crores will boost the Indian

Railways. Apart from that, faster trains and other
passenger-friendly amenities have been the focus areas.
Vande Bharat Express an indigenous technology leap that
will ensure speed, service and safety in rail travel. Being a
‘Make in India’ initiative, Vande Bharat Express will help to
create more jobs as more such train sets are manufactured
for service across the Indian Railways network. Overall,
it is an optimistic budget and will contribute to the allinclusive growth of the economy.

V. G. Sakthikumar, Managing Director,
SCHWING Stetter India

because the number of schemes offered by the MSME
ministry and NSIC. The offerings and the schemes are
good, but the implementation part is what concerns us. For
instance, when a MSME borrower goes to the bank to avail
a `2 crore loan, he/she faces lack of responses form the
bank which is simply frustrating. The responses one receives
from the PSU bank as well as the private banks are poor. So,
the implementation part along with directional guidance
of RBI are very essential for the PSU banks.
The MSME sector is considered the backbone of Indian
economy; so, denying loan to them will impact the
economy. UPA 2 government is very conscious and much
concerned about the MSME sector. No doubt they are
giving many schemes for the development and progress of
the MSME sector. But the implementation part is very poor.

Anupam Gupta, Chairman - Technology
& Innovation, All India MSME

Association and Vice President Programs, Leap Skills

Even though, the budget 2019 is not regular and only an
interim in nature, we appreciate that the Government of
India is taking proactive measures to help housing and
real estate segment in particular. Besides this, the stress
on housing for all; recognising the need of the people
who migrate from their native place to the place of work,
the government has permitted interest in exemption of
IT for two houses. Similarly, increasing or exempting tax
for employed whose income comes up to `9 lakhs will
help the real estate segment. We hope this additional
benefits gives further fillip, thereby giving boost to ready
mix concrete industry in India.
We would say that the 2019 budget brings a bit of relief
to the real estate segment which was going through a
tough time post GST and RERA introduction.

Dr. Avinash. K. Dalal (Nallawala),
National President, AIMA MSME

Every sector has one or the other expectation from the
Union Budget. Budget for MSME sector was satisfactory

Budget 2019 was overall a balanced budget keeping in
mind that we are in the election year. The MSME sector
which saw its growth momentum cut short due to GST and
demonetisation will hopefully be back on track to achieve the
growth targets. The start-up policy needs a lot more rework
though, keeping in mind that technically all start-ups are

MSMEs. The differentiation we have created between MSME
and start-up needs to be codified and any gaps in the system
need to be fixed at the earliest.

Keerthi Kumar Jain, Founder & CEO,
Any Time Loan

We were just prepping ourselves for an aggressive,
election-driven budget. But, we are so glad that the
budget was measurable and touched the right notes,
Continued to 16

14

g

March 2019 n OEM Update



budget 2019
Union Budget 2019: Reassuring the MSME sector
14 f

stimulating growth and demand of the economy. It
met the concerns of farmers and middle-class segments
without risking the bankruptcy of the country. It has given
high hopes to many, including farmers as agriculture is the
backbone of our economy. Meanwhile, high sops were also
the highlight of the budget as no extra levies were forced

on high income earners or corporates. A few measures are
laying the foundation for the new dimensions to make
India a $10 trillion economy. Hence, it is a progressive and
pragmatic budget.

expectations of strategic financial alignment to streamline
MSME as one of the most important tools to the economy
rise. While the disclosed budget doesn’t have much
to offer, the only major thing that we see in the Union
Budget is a mandate that will reserve MSME for 25 per
cent of government sources which we as a company
value. But if we look it rationally, the Indian machine tool
industry is performing par for technology and quality, so
the government sourcing was eventually happening. We
were expecting a strong policy to help the industry to be
competitive in the global market directly.

Prateek Agarwal,
Business Head-Lending, ftCash

Aniruddha R. Vilekar, Chief Technical
Officer, MR & Head- Marketing,
Ador Welding Limited

We still have a long way to go on the ideal ways of doing
business in the MSME segment which should primarily
focus on – access and implementation of easy business
practices, policies, taxation and most importantly there
understanding around it.
However, we are progressing fast and in right direction.

The ease of doing business ranking has scaled us 23
positions to 77th rank last year and the small business
segment has got more relaxations in the recent budget
around regulations, taxation and access to capital.
Ahead of the elections, the government has taken many
critical and effective steps like the 59-minute loan ,
interest rebates for a few segments, quarterly filing of
return, GST exemptions for micro segment doubled from
`20 Lakh to `40 Lakh and many more to address some
challenges that the MSME community has been facing
after the demonetisation, GST and the ongoing crisis in
the NBFC sector.

This budget has been not as conservative as expected.
Though there has been only a marginal increase in
budgeted support towards defense expenditure of
around `25000 crore, there has been an expenditure
allocation of `1.58 trillion for railways which is the
highest ever and will surely put provide business
opportunities. There is bound to be some further thrust
on infrastructure and for MSMEs which augurs good for
the industry overall taking into consideration that this
is an interim budget.

Shailesh Mittal, Director,
Mitco Weld Products Pvt Ltd

Maulik Patel, Executive Director,
Sahajanand Laser Technology Ltd

Before the announcement of the budget by our interim
Finance minister in Lok Sabha, there were major
16

Being the budget of the election year, it was expected
that the budget will be pro-farmer and pro-poor. In
that respect, the government has followed the norm.
However, it was expected that there will be some
relief in income tax slabs (given good collections
under GST) and some incentives for industries
as well (given how much focus this government has
given on development). However, in these two areas
budget has not delivered much. Income tax relief has
been biggest eyewash probably in history of Indian
budget.
March 2019 n OEM Update



Industry AnALysIs

Healthy ‘money’ concerns of machine
tool industry

MSMEs contribute to
employment and inclusive
growth and credit flow
to them is critical. Here
is an industry analysis on
what is going wrong on

the ‘financial’ front and
what needs to be done to
strengthen the financial
status of the machine tool
industry.

T

he lending processes for SMEs and MSMEs have multiple
pain points, unaddressed challenges and inefficiencies
in the traditional and online world and are no different to
the machine tool industry.
Finance challenges in machine tool industry
The financial institutions look at various factors to assess
an MSME borrower, right from a healthy cash flow, steady
growth, good credit bureau history, a maintained healthy
accounting practice, supplier relationships to showcase
stability, inventory management as per business cyclicity,
which is not always available. Prateek Agarwal, Business
Head-Lending, ftCash says, “There are so many requirements
in terms of documentation that the MSME entrepreneur
takes guidance and resorts to the intermediary or DSAs for
securing him the finances from various banks and NBFCs.”

innovations of aerospace and defense industry. But, for
self-sufficiency, heavy financing is required.
Keerti Kumar Jain, Founder & CEO, Any Time Loan says,
“While a positive wave came in when the budget 2019 was
announced, raising the GST exemption limit to ` 40 lakhs
and sanctioning of upto ` 1 Core loan for MSMEs under

50 minutes, the industry needs support in other forms
for a better growth. Faster single window clearances, GST
policies on land acquisition and ease of doing business will
help Make in India a successful initiative. The government
also should focus on a financial mechanism allowing
Indian companies acquire firms abroad. Payments,
taxation and procurement are the other challenges faced
by the industry.

Majority of the unorganised small businesses do not
go for formal credit due to lengthy paper work and
documentation requirement in a brick mortar/traditional
lending system. The others are denied credit due to
unavailability or poor financial history, lack of collaterals
and infrastructure, low ticket size of loan or a repayment
track which most of FIs look at. Agarwal adds, “There is a
need for a single window to help MSMEs and SMEs get
access to funds.”

Some of the major players in this industry work on
credit time which is a cycle difference for payment from
the customer to the company and company to vendors.
Generally, it is quite a good difference in tenure of
these payment cycles. Maulik Patel, Executive Director,
Sahajanand Laser Technology Ltd says, “To bridge the gaps
in the payment cycles, companies have to look for previous
financials or loans from the banks. These gaps are often
unidentified and remain unattended by the union budget
presented by the government.”

Only 42 per cent of the machine tool industry needs are
met by domestic manufacturers, rest of the requirements
are imported. But, to generate 100 million jobs and push
the GDP contribution from manufacturing industry to
25 per cent, we require strong financing as the latter
cannot be achieved on imported technology. Moreover,
no country will share their advanced technology or latest

The 59-minute loan
MSMEs contribute to employment and inclusive growth
and credit flow to them is critical. Often MSMEs face
credit constraints and operate through self-funding.
The 59-minute loan is expected to be a game-changer
by easing the problems of the small enterprises in
gaining access to funds. This will eventually pave
Continued to 20

18

g

March 2019 n OEM Update



Industry AnALysIs
Healthy ‘money’ concerns of machine tool industry
18 f

FinTech’s who would need to

create a tech-enabled platform
focused on meeting the lending
demand of the SMEs
Prateek Agarwal, Business HeadLending, ftCash

The untapped credit demands
can be met with Peer-to-Peer
lending offering unsecured
loans to MSMEs
Keerti Kumar Jain, Founder & CEO,
Any Time Loan

way for the development of such units, improve the
quality of their products, and smoothen their business
operations. Machine tool industry will gain immensely
since SMEs significantly dot the country’s manufacturing
landscape.
V. Anbu, Director General & CEO, IMTMA says, “The
doubling of GST exemption is a welcome move by the
government as it would mean small enterprises will have
more capital at their disposal for meeting expenses.”
The Indian machine tools industry is highly fragmented
with many small, medium and large suppliers who
compete in product differentiation, service portfolio and
pricing and businesses can be safely bifurcated among
the GST, non- GST businesses and digital and non-digital
businesses. Agarwal says, “The government initiative
of lending market place – the 59 minute loan is a great
online option for the businesses that have all required
pre-requisites like GST details, ITR documents and online

access to bank statements etc. and will gain acceptance
over a period of time and is in direct competition with the
new age fintech’s and market place who serve the similar
customer segment.”

For India, to become a manufacturing hub, various
strategic reformations are required and the hike in GST
exemption limit is one among them to strive towards
Make-in-India initiative. The hiked threshold will reduce
the burden of compliance. Currently, the Indian machine
tool industry comprises of 1,500 units dotted across the
country.
Jain says, “Keeping the heavy investments required to
build a self-sufficient machine tool industry, the centre
sanctioned 59-minute loan up to ` 1 crore for GST
registered MSMEs. The introduction of GST itself tended
to shift India from agrarian economy to manufacturing
economy.”
During 2017-18, the machine tools imports to India has
reached 7752 crores, compared to 6173 crores during 201617, showing a Y/Y growth of 25.6 per cent. Meanwhile, the
exports declined by -1.4 per cent. Hopefully, the twin move
by the government will push the growth of the sector.
Redefining the lending paradigm to bridge the finance
and transaction gaps
In the current formal lending process, the FIs (Financial
Institutions) look at various parameters like lengthy paper
work, financial history, collaterals, a health repayment
track and high bureau scores of directors or proprietors
for existing businesses and not many credit options for
first generation entrepreneurs.

Agarwal says, “The future of lending to the SMEs in India
needs to be redefined when there is a partnership between
government bodies, regulators and FinTech’s who would
need to create a tech-enabled platform focused on meeting
the lending demand of the SMEs.” This partnership needs
to enable in creating a trail of digital transactions using
formal and alternative data points like online financials,
credit bureau checks and social data.
Around 90 per cent of Indian machine tool sector
comprises of SMEs and all of these need finance to expand
their business horizons as well as keep pace with growth
and development. Financial institutions and banks lend
money to MSME sectors at varied interest rates.

However, there is a large GST exempted population of
businesses who do not have these pre-requisites but
have much larger need for credit which still needs to be
addressed. Simple but scalable and sustainable platforms
like UPI needs to gain more penetration in the cash
dominated businesses which can in turn be a surrogate
for digital history and get into the formal credit league for
financial institutions.

Anbu says, “The industry feels that this needs to be lowered
which will make it easy for the MSMEs to repay. In overseas,
the interest rates for lending is lower as compared to India.
However, government is extending all possible support to
ease this and provide viable solutions for industries to gain
access to capital from banks and financial institutions at
better rates.”

There can be certain benefits with this scheme but it is
more profitable to micro and small industries. Patel says,
“Medium enterprises like ours show continuous progress
and lie in the top tier class of medium organisations which
means we would require much larger capital in debt/loan
to continue some of our functions. Yes, GST exemption, of
course! But again, it may also be highly regarded for micro
and small organisations.”

Despite the contribution made by machine tool industry to
the growth of the economy, it largely remains un-served
by the financial institutions. The overall MSME industry
has a huge unmet credit demand of about $ 200 billion.
Jain says, “A renewed and polished approach will help the
machine tool industry receive credit from fintech and
traditional banking sector to bridge the gap and achieve
full potential.”
Continued to 22

20

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March 2019 n OEM Update



Industry AnALysIs
Healthy ‘money’ concerns of machine tool industry

20 f

Transaction gaps disturbs the
current finance from the banks
and slows the overall bankinginterest process
Maulik Patel, Executive Director,
Sahajanand Laser Technology Ltd.

The industry feels that the
interest rates needs to be
lowered to make it easy for the
MSMEs to repay
V. Anbu, Director General & CEO, IMTMA

Patel says, “Transaction gaps has been one of the key
factors for slowing down growth in the sector. These
transaction gaps result in difficulties to MSME sector for
managing operational costs and thus disturbing current
finance from the banks and eventually slowing the overall
banking-interest process.”
Digital lending platform
A fully integrated ideal platform is possible when there

is availability of online KYC validations like Aadhar, MCA,
financial checks, credit bureau checks and alternative
social data and intent match etc. which can be seamlessly
validated through the API driven tech interface to assess
the credit worthiness of a borrower. Some have even
integrated geo tagging and psychometric tests to validate
the physical presence and Intent of the borrower. These

data points and alternative underwriting is helping a few
players to bridge the gap and overcome the challenges of
traditional lenders.
Agarwal says, “It is definitely not a simplified process for
now but with various government initiatives, it would be
safe to say that in a few years, the new-age digital lending
platforms are coming to the rescue to ensure hassle-free
loan disbursements for SMEs, where SMEs would also be
expected to update their digital knowledge and presence.”
The growing demand of credit, availability of funds sets the
stage for digital lending revolution. The untapped credit
demands can be met with alternatives such as Peer-to-Peer
lending, which offers unsecured loans to MSMEs. Jain says,
“AnyTimeLoan.in is one such leading company, providing
loans upto ` 10,00,000 in just a few seconds. This will help
the existing machine tool firms to expand their businesses
and serve credit to small firms, eliminating the cumbersome
process when compared to traditional loans.”

Improve quality control with apps for digital
microscope

F

This gives the operator access to the latest technology
without having to invest in new microscopes all the time.
Among the apps developed by TAGARNO are:
• Image comparison that allows the operator to compare
a reference image of a golden sample with a recent
sample from the production line

• Focus stacking that stacks images taken at different
focus heights to create one ultra-sharp image with no
blurred or out of focus areas
• TAGARNO measurement application that enables the
operator to perform on-screen measurements and
add annotations and text to the image directly on the
microscope
• Watermark that allows the user to brand an image
with a logo or confidential text. It is also possible to
add date, time, field of view plus microscope name and
serial number as an imprint on the image
• Verification lines that enables the operator to quality
check an object by placing accurately calibrated
vertical and horizontal lines as a layer on top of it

The user can purchase apps specifically developed to
improve quality control processes for their microscope.

With a digital microscope, it’s easy to capture and share
images of your work - both with and without graphics on.
The shared documentation material allows for improved
collaboration with all supply chain partners and more
efficient quality control.

inding the right equipment for quality control could
be time consuming. TAGARNO’s digital microscope with
quality control improving apps allows the operator to alter
the system to meet future requirements without investing
in new equipment.

22

March 2019 n OEM Update


robolink

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Robotic-Construction Systems
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igus Robolink® - simple, cost-effective
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from automation, automobile,
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robotics

Human-Robot environment a positive
step ahead
Robots will not take away
jobs. Instead, they will
work along with humans
to provide an easy working
condition
NS Madhusudhanan, Senior Manager-Robotics Business
Development, Factory Automation & Industrial Division,
Mitsubishi Electric India Pvt Ltd

N

S Madhusudhanan, Senior Manager-Robotics Business
Development, Factory Automation & Industrial
Division, Mitsubishi Electric India Pvt Ltd in an interaction
with Aultrin Vijay of OEM Update, Madhusudhanan shares
his views and expertise in the field of robotics.

What products or solutions were launched/displayed at
IMTEX 2019?
Mitsubishi Electric has introduced collaborative robots with
efficient inspection system this year at IMTEX, apart from
the other conservative robots which we call as FR Series
Robots. The other robots have been combined with CC-Link
IE Basic — a communication protocol, which helps them
communicate with field engineering systems. You would be
able to communicate with a single LAN cable so that the
data gets communicated from the robot to the systems. This
makes wiring easy, so it’s one of the USPs we have in our
robots.
The collaborative robots are equipped with an LED on the
arm itself, which can dynamically notify the status of the
robot. So, when the robot is on move, it signals green. If
there’s an error, it shows red. This helps us to understand the
condition of the robot in real-time.
When we say collaborative robot, a human always interact
with the robot and the system gets collaborative. For us, at
Mitsubishi Electric, making the systems collaborative is more
important.
Tell us a bit more about the collaborative robots
There are some modules in the collaborative robots where
you can move the robot with your bare hands and “teach”
that point through the arm itself. So, any layman can
logically do this programme. That is what we call as “the easy
way of robotics”. This especially helps, if you are doing a pickand-place or an assembly application and omits the need to
write a lengthy programme. So you can just move the robot
from one point to another point and you can just “teach” it.
That is more important in the collaborative systems.

At Mitsubishi Electric, we take human safety seriously. So,
24

the collaborative system is also more important. For example,
if somebody goes near the robot it should automatically stop
or slow down so that machines can work along with humans
without any problems.
Also, if somebody has an old robot of Mitsubishi Electric
make, we can also make it collaborative.
Will it have the ‘price’ appeal that the Indian customers
are looking for?
Collaborative robots can be used to replace manpower
where repetitive or fatigue tasks are involved. I think we
can match in terms of cost vs productivity. Our robots have
industry standard pricing, but in some cases you need to
pay extra for additional options or features. For example,
you need to pay extra premium for Artificial Intelligence
applications such as preventive maintenance, which is useful
for a lot of industries. However, the extra cost serves a very
good purpose and it’s not costly when compared to the
robot’s capital cost. I think we are almost trying to match
the industry standard pricing.
Will robots work alongside humans or would it be taking
away their jobs?
Actually, replacing of humans is a myth. It is not true. It is
just that we are moving from one level to the other. Earlier,
to operate a CNC machine, we needed an operator. With
robots, we are trying to improve the operator’s efficiency and
take him to the next level. So it’s not taking away any jobs.
The operator needs to be educated to use the machine and

his life will become easier. That means, the same operators
can be utilised to understand the high-end system. That’s all!
So, it is not absolutely going to replace humans. It is going
to use the manpower for other productive tasks instead of
doing repetitive tasks. No company would like to use its
manpower to do fatigue intensive tasks.
Talks about India adopting Industry 4.0 has been going
around for a long time. Still, no factory in India is 100
per cent Industry 4.0 complaint. Why do you think that’s
happening?
Talking about Industry 4.0, we have coined our own term:
e-F@actory. We have already started implementing e-F@
ctory and we are educating all our existing customers, too.
India is a growing economy and we have moved from the
traditional machining systems to an automation platform
now. Next, we want to get into the collection of data
platform. However, collection of data will only become big
garbage. Industry 4.0 needs to be understood thoroughly in
order to get things correctly.
I think Mitsubishi Electric is doing well in e-F@ctory by
providing turnkey solutions to the customers. The response
from our customers has been encouraging so far.
March 2019 n OEM Update


Soft starters for LT/HT
pumps and compressors

T

he complex process of starting an induction motor is
intelligently controlled, simplified; a smooth jerkless start
with reduced starting current is achieved with Jayashree
HFSR soft starters. Jayashree is one of the pioneers in
designing and manufacturing of harmonic free series reactor
type soft-starters.

With continuous upgradation and adoption of new
techniques, their soft starters are most ideal for starting
induction motors.
The latest models incorporate a HMI control which shows the
starting/running performance of motor and keeps a log of
motor performance and parameters.
•
•
•
•
•
•

vailable for 415V/3.3/6.6/11 KV with motor rating up
to 35 MW
HMI/PLC control with data logging
CPRI tested and approved
Ideal for pumps/compressors/crusher
Can reduce starting current up to 1.5 X FLC
Thousands of units in operation over last 35 years.

For more details, contact:
Jayashree Electron Pvt. Ltd

EL-12, J Block,
MIDC, Bhosari
Pune 411026
Phone: - 020 46768998
E-mail :-

March 2019 n OEM Update

25