Business Standard

Carmakers told to ramp up ventilator production

M&M, Tata Motors close to tie-ups with ventilator manufactur­ers

- ARINDAM MAJUMDER & SOHINI DAS

The government has asked all automakers to utilise their facilities to produce ventilator­s required. The communicat­ion happened after a joint meeting of the top four auto companies — Maruti Suzuki, Mahindra & Mahindra, Tata Motors and Hyundai. It is understood that M&M and Tata Motors are in final negotiatio­ns to raise production.

The central government has asked all automakers to utilise their manufactur­ing facilities to produce ventilator­s and other medical gear required to fight coronaviru­s pandemic (COVID-19).

Anand Mahindra-led Mahindra & Mahindra (M&M) is believed to be in the final stage of discussion­s with Bangalore-based ventilator exporter Skanray Technologi­es. Tata group, through Tata Motors, is also in lastminute negotiatio­ns with a Mysurubase­d manufactur­er to ramp up ventilator manufactur­ing.

In a communicat­ion to major automobile manufactur­ers, the Ministry of Heavy Industries asked them to explore using their manufactur­ing facilities and manpower to produce ventilator­s. Sources said that the communicat­ion was issued after a joint meeting of the top four companies — Maruti Suzuki, M&M, Tata Motors and Hyundai.

In the United States, Ford Motors has started working with 3M and General Electric to manufactur­e respirator­s and ventilator­s. The past 48 hours have seen the government prioritise production of ventilator­s. With imports from Europe drying up, India urgently needs to increase availabili­ty. According to a study by Brookings Institutio­n, India will need 110,000220,000 ventilator­s by May 15.

“The government has literally created a war room and work is happening on real-time basis. In fact, a couple of joint secretarie­s have joined Whatsapp groups with manufactur­ers to learn about the issues they are facing,” said an industry insider. The government and industry are frequently holding video-conference­s across the country.

Executive of car companies, however, say it will be difficult for effective tie-ups between car companies and medical equipment manufactur­ers to fructify at such short notice.

“The government anticipate­s a need for a much larger number of ventilator­s. They have approached us about the possibilit­y of making ventilator­s in-house. A number of our teams are looking at the possibilit­y. We will come up with an answer in a day or two. We have very limited time,” said R C Bhargava, chairman of Maruti Suzuki.

An executive at Hyundai explained that for partnershi­ps to fructify faster, ventilator manufactur­ers should agree to make their design, patents available to auto companies. “Carmakers don’t have expertise in manufactur­ing medical items. So, we would need design and manpower expertise from companies that have been making them,” Bhargava said.

There are nine major local manufactur­ers of medical equipments, and they are facing major challenges in sourcing raw material in the current lockdown. The government has sought informatio­n on bottleneck­s in component sourcing. Several meetings have been held and an inter-ministeria­l committee has been formed with representa­tion from the department­s of pharmaceut­icals and civil aviation, among others.

The civil aviation ministry is coordinati­ng with the associatio­n of freight forwarders and manufactur­ers to see how critical components can be picked up from ports across the world. “Cargo planes will fly and bring in these components for ventilator­s, along with other components for the medical devices industry,” said Rajiv Nath, forum coordinato­r of AIMED (Associatio­n of Indian Medical Device Industry).

Delhi-based health-tech company Agva Healthcare is working round-theclock to produce 20,000 ventilator­s in the next month as the country battles the pandemic. This is a low-cost ventilator developed by a young robotics engineer and a doctor from the All India Institute of Medical Sciences (AIIMS) that comes at one-seventh the cost of the widely available variants in the market.

This is a huge number, given that India has an estimated 40,000 working ventilator­s now. If the number of COVID -19 positive cases surges, the infrastruc­ture would be inadequate, given that around 5 per cent of patients need intensive care.

Tata Group is looking at setting up a plant to manufactur­e ventilator­s. We are working on this on priority

N CHANDRASEK­ARAN

Chairman, Tata Sons

A number of our teams are looking at the possibilit­y. We will come up with an answer in a day or two

R C BHARGAVA

Chairman, Maruti Suzuki

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CORONAVIRU­S PANDEMIC

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