We export only to SAARC countries and our entire range is covered

P L Muthusekkar

Managing Director, NORD Drivesystems Pvt. Ltd.

The concept of ‘Make in India’ for the world seems to have caught up with most of the OEMs.  What is your take on this? Indian CE industry taken as whole what is the current growth and expected CAGR in export?

Make in India is one of the best Initiatives for the country and it is shaping up. Although it has taken more than the predicted time, it will help the industry and manifest GDP growth.          

Brief us on the scope and potential for export of your range of products?

We export only to SAARC countries and our entire range is covered.      

Which are the major markets that you focus on and what are the factors contributing to it?

Are there separate investment / R&D efforts for this?  Could you brief us on the same?

Our major markets for focus are India and SAARC neighboring countries. Our R&D facility is located in Germany and continuous investment happens for product development and efficiency improvements.           

The R&D is done exclusively for electronic products like Field Distribution Systems (FDS) & Variable Frequency Drive (VFD), etc. on premium efficiency motors and special gear boxes.         

Do you have a separate product range for the global market?

We do not have any separate product range for the global market. Our motto is “One Product Global Warranty”.            

What do you think are the major challenges you face in the global markets and how do you address these challenges?

Logistics is a major challenge in terms of time as we have less waterway’s movement, for example, exports to Bangladesh and Sri Lanka is time consuming.              

There are delays due to procedural formalities. Our dealers complain because supplies from location like Singapore is faster than from NORD India.                   

How does the company address the logistical / policy-based challenges with reference to the global market? Do you expect any policy reforms or incentive systems from the government that may boost exports?

Export can be improved through better logistics for Asian countries, connectivity to be better and simplified procedures score better than the incentives we literally don’t look at incentives.     

The Time of goods reaching the destination is the key.  

Currently, what is the volume / percentage of business from export and what is the growth you are targeting or expected?

Our volume/percentage of exports is only 6 / 7 % and the markets served are only SAARC countries so it is limited. We plan to achieve a 10% volume of sales by exports in the coming year. We had a growth of 10% last year.          

How do you assess the impact of the Budget 2020 on the CE industry?  Also tell us about the outlook especially the product range that you deal with?

The Government initiatives on Infrastructure spending sounds optimistic and we hope this will help the CE industry to grow better and utilize the exiting capacity in full throttle.      

We supply to batching plants, crushers, material lifts, conveyors, cranes, road construction machines, both concrete and asphalt, mixers and many more, and we see a gradual upward movement for this product range but not the desired levels.

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