In a dynamic collaboration between PwC India and CNBC-TV18, the stage was set for the 3rd episode of CEO Dialogues, a platform that ignited discussions on India's role in becoming a global manufacturing hub. The discussion delved into the pivotal themes driving India's ascent towards global manufacturing excellence.
The dialogue centred around a range of critical topics, including India's ambitions of elevating its manufacturing contribution to 25% of the GDP by 2050, steering economic growth through this trajectory, and the mechanisms to fuel this evolution. The event accentuated the noteworthy emphasis on government reforms and the magnetic pull for investments to catalyse this transformative journey.
Under the theme of "Innovation, Digitization, Sustainability: Scaling towards Global Manufacturing Excellence," the event underscored the notion that India's ascendancy in the manufacturing realm is underpinned by its commitment to delivering product quality and excellence at a competitive cost. This principle not only positions India as a robust contender on the global stage but also aligns with the impetus to enhance exports.
The distinguished panel of experts, guided by Shereen Bhan, Managing Editor of CNBC-TV18, enriched the discourse with their insights and experiences. Sanjeev Krishan, Chairperson of PwC in India, alongside notable industry stalwarts like Bharat Kaushal, MD of Hitachi India Pvt. Ltd., who discussed the power of innovation. Shashank Shrivastava, ED of Maruti Suzuki India Ltd., highlighted the potential of the automotive sector. B Thiagarajan, MD of Blue Star Ltd., spoke about sustainable manufacturing, while Preeti Bajaj, CEO & MD of Luminous Power Technologies Pvt. Ltd., stressed the importance of digitization.
Atul Lall, Vice Chairman & MD of Dixon Technologies (India) Pvt. Ltd., spoke about indigenous manufacturing. Sunjay Kapur, Chairman of Sona Comstar, discussed the balance between innovation and growth. Arun Shukla, CEO of JK Lakshmi Cement Ltd., shared insights into building a strong manufacturing ecosystem. Sudipta Ghosh, Industrial Products Leader and Partner at PwC India, talked about the future-ready manufacturing landscape.
Achieving Global Excellence Amid Environmental Awareness
Addressing the duality of financial and sustainability objectives, CEOs revealed strategies that integrate Environmental, Social, and Governance (ESG) considerations into their corporate fabric. They emphasised that Industry 4.0 initiatives, including digitalization and automation, play a crucial role in achieving ESG milestones. These initiatives not only enhance operational efficiency but also reduce environmental footprints, aligning with global sustainability mandates.
"The Indian cement industry is perhaps the best in efficiency. Within the Indian cement industry, players are competing to become more efficient. Also, the cement industry contributed nearly 10 percent of total annual carbon emission,” Shukla said
Government Support for Electronics Manufacturing
According to Atul Lall, India's decision to limit laptop and PC imports marks a significant turning point, comparable to the “Y2K moment”, for the electronics industry in the country.
He compared the electronics manufacturing sector to the automotive industry, pointing out the possibility of a similar transformation. He mentioned that just like how India became a hub for manufacturing and exporting automobiles, the electronics sector could follow a similar path.
Evolution towards Mobility Solutions
In a bid to tackle the comparatively low automobile penetration in India in comparison to developed nations, Maruti Suzuki India Ltd, unveiled an ambitious plan to introduce a vehicle subscription service. Their idea, called "Vehicles-as-a-Service," aims to use technology's fast growth and India's strengths in different areas.
Importance of Sustained Technology Investments
Sanjeev Krishan, Chairperson, PwC in India, and Sunjay Kapur from Sona Comstar, articulated the critical nature of investing in technology to drive growth and remain competitive in dynamic market environments.
“Just as we talk about any service industries or even health, I think the investment in R&D and innovation is crucial. Currently, India is the innovation hub. Can we be making sustained investment in some of those areas to create new stuff out of India?,” Sanjeev Krishan emphasised.
Transforming India's Manufacturing Landscape
B Thiagarajan mentioned the exciting prospects of transformation in the manufacturing sector in India. It's worth noting that India continues to import machinery from Korea, Japan, and China.
He further said “PLI (Production Linked Incentive) scheme has helped the air conditioner industry in India. Companies will dilute the PLI scheme into reducing pricing.”
Nurturing Digital Skills in Smaller Towns
Preeti Bajaj discussed the critical importance of digital skilling for India's journey towards global manufacturing excellence. She highlighted that while digital skills face obstacles in smaller towns, the motivation and eagerness of Indian talent to lead and learn offer a promising avenue for progress.
“We invest a lot in digital skilling, and that is really about being relentless in grabbing that data culture and driving it. I can tell you that it is a whole different thing in India to do it in small towns but the great news is Indian talent is hungry, they want to lead and they want to learn,” Bajaj said.
Embracing Collaborative Partnerships for Industry Growth
Atul Lall and Sunjay Kapur discussed the role of partnerships and research and development (R&D) in propelling the electronics manufacturing and auto components industries forward. Kapur said, “At Sona Comstar we spend 3.5% of our revenue on R&D. We like to play in maybe 4 or 5 products but we want to do them really well. 75-80% of our business is outside of India in terms of exports. So we are continuously investing in R&D.”
Lall said, “In the electronics manufacturing industry, growth is going to be through the partnership route. You have to tie-up with the best companies globally. China is going through a slowdown and they are looking at opportunities everywhere else and that is where we should open up, take advantage by partnering with them and bring the technology into India. So, I would strongly recommend reviewing our position and partnering with Chinese companies."
Driving Innovation: Stories and Ecosystems
Panellists explored the structured approaches they employ to drive innovation within their organisations. Those strategies encompass fostering an environment that encourages creativity, embracing risk-taking, and providing avenues for experimentation. CEOs shared success stories born from those efforts, underscoring the transformative power of innovative thinking.
As India propels forward, the insights and discussions from CEO Dialogues serve as a compass guiding the nation's stride towards a prosperous manufacturing future.
Watch the whole conversation here.
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