With the presence of all the key global & Indian brands, the market is becoming very competitive day by day.
Sunil K Gupta, President, KION India How do you see the government’s ‘Make in India’ program and mission motivating the industry to participate in it? How is this helping the MHE equipment sector to improve its technological status and competitiveness
Sunil K Gupta, President, KION India
How do you see the government’s ‘Make in India’ program and mission motivating the industry to participate in it? How is this helping the MHE equipment sector to improve its technological status and competitiveness in the global market?
Pursuant to the Aatmanirbhar Bharat Abhiyan, Make in India has become an important step in shaping India as an efficient, equitable, and resilient manufacturing hub. With ~15% share of the nation’s GDP, the manufacturing sector plays a substantial role in the Indian economy. Through the implementation of different programs and policies, the contribution of the manufacturing sector may increase significantly.
Initiatives like ‘Self-reliant India’ ‘Make in India’, and ‘Vocal for Local’, have been impactful providing benefits and advantages to strengthen the Indian manufacturing industry ecosystem. With the introduction of the National manufacturing policy and PLI scheme in 2022, India is offering ease of doing business, a workforce of skilled-talented young minds, and a sustainable future ahead. Foreseeing a favorable market, India is receiving a noteworthy inflow of foreign direct investment (FDI) which may boost the manufacturing industry growth.
The Indian MHE market is also getting benefitted from such events, witnessing strong growth in automation and electrification. The ventures like the Sagarmala and Bharatmala projects, and dedicated freight and industrial corridors, expansion of port terminals in the logistic sector are further accelerating demand for material handling equipment in the industry
KION India is well-positioned to cater to the market demand. Our comprehensive product range of industrial trucks and supply chain solutions offer smarter intralogistics and warehousing operations with higher productivity, better performance, improved efficiency in narrow aisle spaces, and smart energy management in repetitive material handling tasks.
What are your views on making India a global equipment manufacturing hub?
Indian MHE market is witnessing strong growth with a double-digit CAGR, in the last few years and is likely to grow at a higher pace in coming years. With the presence of all the key global & Indian brands, the market is becoming very competitive day by day.
I believe that there are a few promising key factors in favor of higher growth in the Indian MHE sector. The continued growth of Retail, e-commerce, food and beverages, pharmaceuticals, and FMCG sectors drives warehousing market growth, with many players moving into larger and taller warehouses. This has opened up new opportunities for more mechanization and high-end equipment. Secondly, the steady inflow of foreign direct investments is fuelling rapid industrialization. The companies setting up new plants are looking at new factories from a global perspective and are implementing mechanization from day one. Thus, the MHE market is going to flourish on the road to India becoming a global manufacturing hub.
India is emerging as one of the best global investment options to Make in India and Make for the world, with an upgrade in technology and manufacturing standards. KION believes to be at the technological forefront of the industry in terms of innovation, customer focus, and investments in new technologies. KION India, a fully owned subsidiary of KION GROUP AG, is one of the leading players in the Indian MHE (Material Handling Equipment) industry. We are a proud multi-national group company, MAKEs IN INDIA, and are continuously working on upbringing advanced technology intralogistics solutions through our multi-brand offerings OM, Linde, Baoli, and Dematic. Since started in 2011, there has been no turning back, we have been thoroughly expanding our capabilities and uplifting manufacturing standards, offering global standard solutions and services, and setting new benchmarks in Indian MHE Market. We proudly contribute to India’s journey toward becoming a global MHE equipment manufacturing hub.
Tell us about your manufacturing plant capabilities and important initiatives to cater to the requirement of the Indian and International markets?
KION India’s manufacturing plant facility, popularly known as Factory 2.0, is India’s largest and most modern material handling equipment manufacturing facility, which consists of a well-equipped R&D center, modern production lines for industrial trucks, an advanced quality testing facility, a parts warehouse, spacious training center, and a forklift driving school, etc. The in-house R&D team, well-aligned and supporting to worldwide R&D centers of KION Group, exchanges learning, best practices, and technology translating into product advancements. With 125+ customer touchpoints, the KION India service team is close-knit with our customers and offers the best of its solutions and services.
KION India has a versatile range of complete MHE solutions having more than 300 product variants specifically categorized for different applications and customer segments. Our multi-brand offering includes IC forklifts ranging from 1.5T to 20T; E forklifts from 1.5T to 18T; stackers with mast heights up to 6.5 m; battery-operated pallet trucks; and tow trucks up to 25 T& electric reach trucks with mast height up to 15m, Order picker, VNA, AGV & AMR.
We are expanding the horizons of intralogistics, being one of the world-leading groups in industrial trucks and supply chain solutions. We are continuously challenging ourselves to set higher benchmarks with our capabilities, quality supplies, and better customer satisfaction. At KION India, Sustainability plays an overriding role. We are committed to the betterment of HSE & sustainability at our premises, around our employees, and linked with products and services. Factory 2.0 is a 100% solar-powered facility, with >1000 old trees planted, an environmental park having a vegetable garden for employees, and a water treatment plant ensuring recycling and complete utilization of groundwater.
Give us an understanding of your company’s performance in the last 3 years? Foreseeing the government’s strong commitment and stable sentiments in the market, how do you evaluate your company’s growth in the coming years?
The last three years were very challenging due to the Covid-19 pandemic, the Russia-Ukraine War, rising inflation, and the subsequent unprecedented increase in commodity prices and supply chain disruptions. KION India determinedly coped with all the challenges and registered the highest-ever order intake and production volume in 2022. KION India is well positioned to benefit from global megatrends and has been surpassing market growth during recent years.
Foreseeing the government’s strong commitment and supporting policies, KION India aims to expand the horizons of intralogistics to add value to the MHE market. We are passionate to grow and outpace in the industrial truck and material handling industry. As a one-stop solution provider of intralogistics MHE, our objective is to keep evolving as the most preferred and trusted MHE solution provider.
CE manufacturers are now under pressure to manufacture machines that are not only cost-effective but also comply with emission norms. What are your views on it?
The Indian market environment has mostly been cost-sensitive, and many companies are under cost-controlling pressure to win the market. Now that with a focus on the environment and sustainability, the MHE market is witnessing a demand for cleaner and greener technology products. Future warehouses are likely to be based on non-pollutant energy-efficient material handling equipment, such as battery-operated electric forklifts; pallet trucks & stackers. With this futuristic approach, KION India’s R&D team is continuously stepping up its product offering to deliver these market needs. After a successful launch of CEV Stage IV competent IC counterbalance trucks, it is now upgrading the same with CEV Stage V – new pollution norms. With the increase in market demand for automation, digitalization, and sustainability, you will see more innovative, robust, automatic & cost-effective MHE solutions in the coming years.
What are the challenges that you face and what are your suggestions to further ease a business-friendly climate?
According to the World Bank, India ranked 63 rd in 2022 in ease of doing business across the world among 190 countries, replicating improvement in a business-friendly environment. A country’s business regulatory environment is a particularly influential determinant in a country’s economic growth levels. India’s focus on consistently improving the country’s business environment and implementing innovative measures to boost manufacturing and investments in the country has unlocked the potential and will be presenting better opportunities for domestic businesses, multinational companies, and the government.
With the presence of most of the global players, the Indian MHE market is getting more competitive day by day and the market trend is to upgrade the MHE technologies for the future. Considering environmental awareness, demand for battery-operated/electric MHE is likely to grow at a higher pace in near future. Further improvements in the business-friendly environment will encourage the enterprises to become more innovative and will aid technology upgrades in the Indian MHE. I am looking forward to KION India contributing more to the advancements and upgrades in the Indian MHE industry.
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