“We are mulling de­vel­op­ing the busi­ness within the en­ergy mar­ket, for in­stance, we have re­cently taken the de­ci­sion to pro­duce en­gines lo­cally in Brazil. Be­sides, there is an on­go­ing project for lo­calised man­u­fac­tur­ing be­ing car­ried out in In­dia. We are w

Power Watch India - - COVER STORY -

own­er­ship is ex­tremely crit­i­cal for their op­er­a­tions. So, we of­fer a com­plete pack­age to our cus­tomer which makes sense to them.

Do you op­er­ate through any OEMs?

Yes, we have 4 OEMS – Su­per­nova, Ster­ling, Kohler and Grohe, through which we op­er­ate.

Are these OEMs aware of the tech­no­log­i­cal ex­cel­lence of your prod­ucts, and do you have any train­ing pro­grammes in place for their en­gi­neers so that they can sell your prod­ucts bet­ter?

We con­duct reg­u­lar train­ing pro­grammes where the fo­cus is heav­ily on the tech­nol­ogy and to­tal cost of own­er­ship (TCO), which hap­pens to be our strength. Tech­ni­cians as well as sales­per­sons are reg­u­larly trained on these grounds.

You have roughly 35 lo­ca­tions and around 12,000 ap­pli­ca­tions in In­dia. Do you con­vene your OEMs, deal­ers and even cus­tomers to one com­mon point, on an an­nual ba­sis, so that such pro­grammes can be held?

Of course not all three to­gether, but we hold sep­a­rate OEM con­fer­ences, meet deal­ers at the dealer spe­cific con­fer­ence, and with key cus­tomers when­ever pos­si­ble.

What kind of pro­duc­tion line are you look­ing at man­u­fac­tur­ing in your Pi­ta­m­pura fac­tory?

We are look­ing at man­u­fac­tur­ing the 5 and 8 litre en­gine line at our fac­tory in Pi­ta­m­pura.

You are not man­u­fac­tur­ing your most pre­dom­i­nant prod­uct – the 16 litre en­gine in In­dia. Given the ru­pee de­pre­ci­a­tion is­sue and the cost es­ca­la­tion with re­gard to equip­ment im­port, are you plan­ning de­sign­ing an In­dia spe­cific 16 litre en­gine lo­cally, at the Pi­ta­m­pura fac­tory?

As of now, there are no such plans as it would re­quire a huge in­vest­ment. We may con­sider as­sem­bling but not man­u­fac­tur­ing.

At what com­pound an­nual growth rate (CAGR) has Volvo Penta’s in­dus­trial busi­ness grown since 2011?

Tak­ing a 10 year win­dow, the in­dus­trial busi­ness has grown at a CAGR of 5 per cent but, there was a drop in 2012 and 2013.

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