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Akshay Sharma, CEO of Magnum Resources, talks about the latest trends in the Indian machinery industry, technical innovations taking place in this sector, the challenges faced by this industry, and the steps to resolve these challenges with fibre2fashion
What are the challenges that machinery makers/importers in the textiles niche face?
There are many machine manufacturers in the world especially in Europe/US. The main challenge they face is cost-matching according to the country they want to deal with. Countries like India, Pakistan, Bangladesh still have low wage rates; hence, the cost of machines they want to procure matters a lot in terms of ROI. It's the same in the case of importers who are mainly based in US/Europe. They always look forward to having a good profit margin from these countries as the main business somehow comes from here. It all depends upon the price the manufacturers pay for machines, and they get that price from the buyers of their products. It has to be submerged similarly.
What would be your top five steps to be able to meet these challenges?
Cost is the major factor where manufacturers/importers have to focus. Companies who are willing to buy imported machines are looking for ROI within 3-5 years, especially in Asian countries. Here it is better to support the 'Make in India' programme, so that the cost of machines with the same quality is in the reach of small and medium manufacturers too.
Normally, international companies should try to start their manufacturing units in India with a similar R&D that people have utilised in Europe/US. The Indian government has already started this programme, and it has started inspiring many companies planning to put up their manufacturing units in India. Companies should also employ Indian people after giving training to them so that they get similar quality of products (machines) with lesser cost. We all know the wage rate is too high in Europe/US.
There are a few big exhibitions coming up internationally like Shanghaitex and ITME. Our government should prepare a team to invite various manufacturing companies to India. There should be some kind of seminar from the Indian government/textile ministry to promote Make in India in textiles.
To get a good product, we always need good quality raw materials; especially for modern and good machines; steel and electronic components need to be of good quality. If that needs to be imported, there should be some kind of subsidy on those, so that the cost of product remains low.
Why has India not been able to emerge as a manufacturing hub for machinery?
India has the capability to emerge as a manufacturing hub for machinery. With the rolling out of Make in India campaign by our Prime Minister Narendra Modi, we will certainly achieve our strategic goal with team synergy. Promotion for putting up manufacturing units in India will be the best solution to emerge out of this situation.
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