Sagar Bhosale (SB), managing director, Schmersal India, discusses his company’s growth strategy, emphasis on safety and the advantages the brand has to offer with your author (SSP).
SSP: What is the significance of the expansion of Schmersal India’s recently inaugurated Export Oriented Unit (EOU), and what will be the key advantages for the brand going forward?
SB: The significance of the expansion of the EOU is to boost exports and increase production. Looking at the export market, within the next few years we shall be expanding our export activities to a very large extent. The first step for this aim has already been taken: Schmersal expanded the EOU in its factory in August. The EOU scheme of the Indian government was established to promote export activities by granting a variety of (mostly tax-related) advantages. Schmersal India already benefits from these advantages, because a humbler, first EOU was established in 2018. The key advantage for the brand going forward is that it gives an opportunity for greater brand recognition while reaching out to a new set of customers.
SSP: What are the positive implications your latest development is likely to have for the vertical-transportation (VT) industry in India and across the globe?
SB: Currently, the pandemic has challenged the VT industry worldwide, due to the need for physical distancing and protecting users from touching surfaces in lifts. The Schmersal Group has developed software updates and hardware products to help prevent the spread of COVID-19 in lifts, including such products as foot-operated sensor push buttons, increased air purification and ventilation through a software update in our existing BP408 controller and an elevator button panel with a voice-recognition system.
SSP: What is the unique selling proposition (USP) that defines the Schmersal brand?
SB: Our major focus has always been to ensure the safety of machines and, just as important, the safety of the people working on the machines. The USP that is paramount in the Schmersal brand has always been manufacturing safety products designed with advanced German engineering technology and supported with aftersales services.
SSP: How would you describe the growth strategy adopted by Schmersal India? What have been the thrust areas for the company?
SB: Growth is fundamental for any business. Since its inception in 2007, Schmersal India has added many feathers to its cap. We have set up a global IT support center and a global engineering center, and expanded our existing EOU in Pune. We have opened new offices in various cities in India, set up a free-trade warehouse zone (FTWZ) near Mumbai and engaged in many more such activities to give Schmersal a strong foothold in India.
Embracing the “Make in India” initiative is one of the major thrust areas for Schmersal. Our manufacturing facility is enhancing its product range by designing and manufacturing customized safety products catering to the needs of customer-specific applications, for the local market, as well as for export to the Schmersal Group from the EOU within our Indian factory. Among our numerous options, the elevator and escalator, food and pharmaceutical, and power industries are identified as the vital thrust areas for the company.
SSP: What has been the feedback so far for the global IT and engineering centers, and FTWZ?
SB: The feedback received so far has been overwhelming and much aligned with our strategic plans. With the changing times and looking at the current scenario, we are highly confident about the further growth of these facilities.
SSP: How does Pune as a location give Schmersal India an advantage?
SB: Unquestionably, Pune as a location gives Schmersal India an edge, as the city has a strong manufacturing base covering the automobile and engineering industries, which, in addition to the city’s rapid industrialization, places Pune on the list of the top five foreign direct investment destinations in India. Pune ranks as one of the top cities in financial importance, and the Ranjangaon Maharashtra Industrial Development Corp. industrial area has provided the necessary infrastructure to smoothly set up operations. This was a win/win situation for us.
SSP: How would you describe Schmersal’s vision and strategy for the Indian market?
SB: India is a very important and strategic market for Schmersal, and the facility in Pune was set up to engage in the growing Indian market for machine safety. The vision that we hold is, whenever anyone thinks of “safety,” they should think of “Schmersal.”
Celebration Opens EOU Expansion
Schmersal India laid the groundwork for growth with the recent expansion of its Export-Oriented Unit (EOU) at its Ranjangaon, Pune, factory. Sandeep Sharma, plant head, ITC Pune, was the guest of honor at the ribbon cutting. Sagar Bhosale, managing director of Schmersal India, observed that Schmersal India began with a single, 221-m2 production line and added two additional lines in one year. Now, lines four and five are on the horizon, and plans include rapid export growth. He said further that the EOU, with its nearly 1,000 m2, will allow new production lines to be added as needed.
Schmersal Group Managing Director Philip Schmersal expressed best wishes virtually from headquarters in Germany and emphasized the importance of an export-oriented Indian factory within the footprint of Schmersal. “The inauguration of the EOU that we celebrate today brings together German products, Indian craftsmanship, high-quality products and competitive prices, and contributes to the economic success of the entire Schmersal Group,” he said. “We will create new jobs in India, fill the factory and produce competitive products. . . .”
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