The ‘Make In India’ program has led to the creation of a more conducive business environment in India,

Hemant Mohindra, Managing Director, Rossi Gearmotors (India)

How do you see the government’s ‘Make in India’ program and mission motivating industry to participate in it? How is this helping the construction equipment sector and its allied industries to improve its technological status and competitiveness in the global market?

The Make in India program is an initiative launched by the Indian government in 2014 with the aim of promoting manufacturing and investment in India. The program seeks to transform India into a global manufacturing hub by facilitating investment, fostering innovation, and enhancing the skills of the Indian workforce. Since its launch, there is estimated USD 180 billion in foreign direct investment (FDI), with a significant portion of the FDI directed towards the manufacturing sector.

The program has also led to the creation of a more conducive business environment in India, with the government implementing a series of reforms to simplify regulations, reduce bureaucratic red tape, and improve infrastructure. The introduction of the Goods and Services Tax (GST) and the establishment of the National Investment and Infrastructure Fund (NIIF) are examples of these reforms.

With FDI, comes growth, competitiveness and technological improvements in the markets, which has helped the construction industry along with overall industrial growth.

Foreseeing the government’s strong commitment and stable sentiments in the market, how do you evaluate your company’s growth in the coming years?

Government initiative is extremely important in pushing the growth and India is reaping the reward of this government’s strong commitment to business growth.

Rossi India we expects a growth of 35% in the year 2023. The main reason for this is our strong product line up and also our technical strength. We are entering into new markets like Power, that are contributing to Industrial growth in a big way and our products are very suitable for these markets. We are very confident of our growth and therefore, we have been investing in the company since last 4 years. We are taking steps to increase the plant capacity with a lot of focus on Environment, Health and Safety. In short, its Productivity with Responsibility. With these initiatives, we expect to grow at minimum 18-20% CAGR till 2028

What are your views on making India as a global construction equipment manufacturing hub?

India has the potential to become a global construction equipment manufacturing hub. The country has a growing manufacturing sector, a large pool of skilled and semi-skilled labour, and a favourable investment climate. Additionally, the Indian government has launched several initiatives such as the Make in India campaign to promote domestic manufacturing and attract foreign investment.

Several leading global construction equipment manufacturers have already established manufacturing facilities in India and focus is even more on India after the pandemic. Apart from many global players, India has also seen the emergence of several domestic manufacturers that have gained a significant market share in India and are now expanding globally.

To further develop India as a global construction equipment manufacturing hub, the government and industry need to work together to address key challenges such as improving infrastructure, reducing the cost of finance, and increasing the availability of skilled manpower. Additionally, there is a need to focus on research and development to produce innovative and technologically advanced equipment that can compete with global counterparts.

What is your future strategies at a time when technological disruptions are rapidly defining businesses in the sector?

We are in new India where the customers pay for quality. Whole world has become one business park due to better technology transfer, upskilling of global workforce, ease of communication etc. In fact the Technological disruptions are good for the industry as it helps in improving the machines and offerings. The way to embrace these disruptions are by embracing digitalization, investments in trainings, going for modular construction, prioritize offering sustainable solutions and collaborate with new age technology companies. Another way is to launch new products that suit the changing industry needs and this is what exactly Rossi has been doing to stay relevant in business

Manufacturers are now under pressure to manufacture machines and components which are not only cost effective, but also comply with the emission norms. What are your views on it?

Being cost effective is good but too much focus on cost that puts lot of pressure on the businesses and most of the companies have understood this.

Apart from cost there are many more factors that drive the business today. Some of them are:

• Socially Responsible Business practices like higher efficiency products to reduce carbon footprint, ensuring ethical supply chains, and investing in their employees’ well-being
• Technology Advancements
• Better access to information
• Globalization for opening up new markets for businesses to expand their operations and reach more customers
• Encourage Entrepreneurship creates more diverse and dynamic business landscape, and it has enabled more people to pursue their passions and create meaningful work for themselves and others.

Overall, these trends are contributing to a more sustainable, innovative, and socially responsible business environment, which is creating new opportunities for businesses to grow and succeed.

What are the challenges that you face and what are your suggestions to further ease a business-friendly climate?

The main challenge that we currently have is the insufficient capacity but that will be resolved in a couple of months. Another challenge is to cater to volume market which is mainly light duty. Rossi is known globally about its presence in medium and heavy duty markets but now, with the launch of new product series and upgrading the existing products, we are trying to penetrate into this market. We are confident about our success in light duty market also in a couple of years through localization. However, the focus will still be on value creation for customers and not solely on cost.v

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