Industrial Treated Yarn Entry Barriers and how to Overcome through new initiatives
Transcription
Industrial Treated Yarn Entry Barriers and how to Overcome through new initiatives
Holding Sites Products Inside look Industrial Treated Yarn Entry Barriers and how to Overcome through new initiatives Karthick Gnanasekharan, Managing Director, MEP-OLBO India Pvt Ltd. MEP-OLBO Page 1 MEHLER AG – 175 years of textile history Holding Sites Products Inside look 1837 Valentin Mehler started a craft enterprise for table linen with 53 employees and he generated a turnover of 66 422 “Goldmark”. Starting from this time the company moved progressively to a specialist of technical textile. MEP-OLBO Page 2 MEHLER AG Holding Sites Products Inside look • Products for the building industry and agriculture • Personal security • Textile reinforcement • Dipped yarns and cords • Tents, sun protection MEHLER AG • Ladies‘ fashion • Coated fabrics • Technical fabrics • Machine building and engineering services • Information technology MEP-OLBO Page 3 The world leading partner for your rubber goods MEP-OLBO Page 4 Locations MEP-OLBO – worldwide Holding Sites Products Inside look Fulda, D Wujiang, CN Hessisch Lichtenau, D Headquarters Kalefeld, D Martinsville, USA Famalicao, PT Bangalore, IND MEP-OLBO Jilemnice, CZ Page 5 Production possibilities and operating figures Holding Sites Products Inside look Technical possibilities Twisting possibilities : from dtex 50 to dtex 100.000 from dtex 220 to dtex 50.000 up to 3 m width Treatment possibilities : Weaving possibilities : Production capacities Yarn capacities worldwide : Fabric capacities worldwide : approx 19.000 tons = 36.376.279 lb approx 19.500 tons = 42.990.149 lb Operating figures Turnover 2009 worldwide : 120 million € = US $ 162 Mill Turnover 2010 worldwide : 155 million € = US $ 209 Mill Turnover 2011 worldwide : 158 million € = US $ 213 Mill Forecast 2012 wordwide: 170 million € = US $ 230 Mill Employees worldwide : approx. 1.000 MEP-OLBO Page 6 Entry Barriers 1 Market Overview In India manufacturing of Industrial treated yarns (ITY) is still a maturing concept. • Currently, in India manufacture of ITY is mainly for industrial application and not fully explored into automotive • Manufacturing of ITY for the automotive application – high potential is there. • The market today for ITY in India is still low and does not justify a large scale production MEP-OLBO Page 7 Entry Barriers 2 • • • Availability of land • Within 50km radius of city limits • High price even when compared to developed countries • Payment of all money through bank – limited options Government support • Unclear rules, laws & legislations • Single window system – limitations • Time frames for approvals – uncertainty • Red carpet welcome does not translate into reality • Poor cooperation from officials Infrastructure • Power – • unstable and huge shortages • Limitations to get uninterrupted power - minimum demand (KVA) restrictions for continuous process industries • Higher capital cost and revenue costs • Water • Roads – accessibility and travel time MEP-OLBO Page 8 Entry Barriers 3 • • • • Human resources • Well educated but poor skill levels – industry alignment missing • Long term engagement? • Values – commitment, work ethics, house keeping, safety……missing • Trade unions Equipment & local vendors • Non realistic time frames • Not aware of high standards of developed nations Raw materials • Filament imports • Chemical imports – largely Finance • Start up company – bank finance is almost impossible • Mortgage not possible • Repatriation is too expensive MEP-OLBO Page 9 New Initiatives 1 • Market Overview • With the global market in mind and in the reach of the group a global capacity is being implemented – not limited to domestic market • The latest technology is under implementation – new generation products • Highest level of automation is under implementation to acieve automotive volumes • High importance towards HSE topics • German engineering with Indian manufacturing • Availability of land • Pan India survey was done to choose the right location a. Technically b. Politically c. Financially – right vendor d. Business wise MEP-OLBO Page 10 New Initiatives 2 •Government support •Cushion for delays at various stages to be factored in project time plan – with regards to government clearances, local suppliers •Engagement of consultants to obtain clearances from statutory authorities •Infrastructure •Install captive generators with battery back up UPS – for continuous process machinery •Buy water at high cost from local suppliers MEP-OLBO Page 11 New Initiatives 3 •Human Resources •Recruiting of talented people – takes time and comes with candidate referrals • Plan for training programs which will improve the skill levels and other attributes of employees •Engagement of blue collar employees through manpower supply agencies on contract – assess and then may take good employees on rolls •Finance • Look for funding options with banks of foreign origin • ECB route for capital goods MEP-OLBO Page 12 India Office: Head Quarters: MEP-OLBO GmbH. Edelzeller Strasse 44 36043 Fulda Deutschland MEP-OLBO India Private Limited Plot Nos S10-S15, Intergrated Textile Park, KIADB Industrial Area, Doddabalapur, Bangalore 561 203, India. Tel.: +49 661 103- 0 Fax: +49 661 103- 666 E-Mail: [email protected] http://www.mep-olbo.de Tel. : +91 80 2763 0068 Fax : +91 80 2763 0008 E-Mail: [email protected] http://www.mep-olbo.de MEP-OLBO Page 13 Come to us and realize your product solutions with us Your world leading partner for the Rubber Industry Thankyou for your attention MEP-OLBO Page 14