Whirlpool India's CEO Raj Jain: An aggressive strategy

Some 30 per cent of airconditioners, 24 per cent of washing machines and 16 per cent of refrigerators sold in the US are made in China. That explains why 60 per cent of the $250-billion foreign investment pumped into China was used to build capacity for outsourcing.

Can the white goods MNCs in India hold a candle to China's dominance? Well, one company, Whirlpool India, sees potential for sourcing out of India. "Since the last four-to-five years we have been seriously looking at exporting to the Whirlpool system," says S.S. Raman, VP (Manufacturing), Whirlpool India. Exports today make up 12-15 per cent of Whirlpool India's $200-million turnover, and are expected to contribute 25 per cent of revenues in three years.

Here's how it works: Each Whirlpool global operation announces its requirements, and each sourcing base bids for the work. And the Indian arm has been successful at getting into the loop. "We recently won the bid from Kitchenette for a coffee grinder. This is a product we do not make in India, yet our facility in Pondicherry won the bid," explains Rajiv Kapur, Director (Exports), Whirlpool India. He adds that Whirlpool India made $1 million from the product, and will be exporting it to Canada soon. Now that's a start.

-Seema Shukla

FORD & GM
BANKING ON LOW COSTS, HIGH SKILLS

Ford India CEO David Friedman: Zeroing in

Try this for size: the global market for auto components is worth $750 billion. Predictably, most of the manufacturing units are in developed (read high-cost) countries. Cut to the Indian auto components industry. Size: $3 billion, with exports of $375 million. Conclusion: Huge opportunity.

You don't have to tell auto giants like Ford and General Motors (GM) that. They've already sniffed the scope, well aware of India's low costs and high technical skills.

Ford is seriously evaluating propects of sourcing $150 million worth of material and components from its Indian operations. And that, note, excludes the Rs 196 crore of direct exports Ford India does.

Right from seats to batteries to sheet metal to alternators to aluminum alloy wheels to radiators to even radiator caps, India is an ideal sourcing base for global auto majors. GM has a global purchasing process in place which helps to procure parts from any best "QSTP base" (that's quality, service, technology and price) across the globe. "Some of the Indian suppliers are providing the best QSTP," points out P. Balendran, Vice President (Corporate Affairs), GM India.

-Vinod Mahanta

ABB INDIA
EXPERIENCE MATTERS

ABB CEO Ravi Uppal: Leveraging the India presence

Present in at least 100 countries, ABB has chosen China, India and Brazil as its three main growth engines. India, for its part, has also been recognised as the regional centre of excellence for process automation solutions for the cement and steel industries. And India is the base for developing the South Asian market, too, for this global major. In the words of Ravi Uppal, Managing Director and Country Manager, ABB India: "ABB's presence in India of over seven decades, its high degree of domain competence, experience and installed base along with its vast local manufacturing capabilities have led to a greater global role within the group."

This global contribution encompasses projects, products and services. For turnkey projects the Indian manufacturing base, technical expertise and competitiveness are being increasingly leveraged. A recent order for sub-station solutions for Syria is one manifestation of that muscle. ABB India's Vadodara plant is recognised as the global sourcing base for 72.5 kV circuit breakers and the Nashik operation has been designated as a global factory for 33 kV and 11 kV medium voltage outdoor live tank circuit breakers and magnetic actuators.

For ABB, standardisation of technologies to ensure uniform levels of quality, aesthetics and functionality is the buzzword. So the Made in China or Made in India tags don't matter much. What matters is the Made By ABB sticker.

-Seema Shukla

CLARIANT INDIA
A SPECIAL(ITY) PLACE

Clariant CEO P. Rastogi: India is a perfect sourcing base

For global speciality chemicals majors like Clariant, BASF, Ciba Speciality, ICI and Bayer, India is a perfect base for reducing costs and increasing realisations. There could be another reason-a not very flattering one-for these giants using India as a sourcing base: environment regulations are less stringent than in the first world. But that advantage may not last for too long. Anyway, that's not the only reason for the chemicals majors plumping for India. "The advantages of sourcing from India are assured quality to meet customer requirements, a wide product range, availability and competitive pricing," explains S.S. Patil, Vice President, Clariant India.

That's why Clariant India is one amongst three global sourcing bases of the parent company, with the local arm providing finished dyes, and dyes intermediates for the textiles, leather and paper processing industries to 30 Clariant affiliates globally. Currently, 30 per cent of Clariant India's turnover comes from sourcing to group companies, and Patil expects this business to grow at a modest 7-8 per cent over the next three-to-five years.

-Brian Carvalho

1 2