Indian Manufacturing Sector

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Peregrine
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Indian Manufacturing Sector

Post by Peregrine »

CCI approves ArcelorMittal's acquisition of Essar Steel

The Competition Commission has approved the acquisition of debtridden Essar Steel by a consortium of ArcelorMittal and Japan's Nippon Steel & Sumitomo Metal Corporation. Earlier this month, ArcelorMittal had offered Rs 42,000 crore to acquire Essar Steel, upstaging a Rs 37,000 crore bid by Russia's VTB Group-backed Numetal.

ArcelorMittal and Numetal are in the race to acquire Essar Steel, currently undergoing insolvency proceedings as it owes more than Rs 45,000 crore to over 30 banks.

"@CCI_India finds no appreciable adverse effect on competition in respect of ArcelorMittal and Nippon Steel & Sumitomo Metal's proposed acquisition of Essar Steel," the fair trade regulator said in a tweet Thursday.

Deals beyond a certain threshold are required to get clearance from the Competition Commission of India (CCI).

According to the notice submitted to the CCI, the proposed combination is pursuant to a resolution plan filed by ArcelorMittal India before the resolution professional for the acquisition of Essar Steel in accordance with the provisions of the Insolvency and Bankruptcy Code.

The acquisition of Essar Steel is proposed to be undertaken through multiple steps, which will be taken after and subject to obtaining requisite approvals of the Committee of Creditors and the National Company Law Tribunal (NCLAT) under the Code, as per the notice.

ArcelorMittal India is an arm of ArcelorMittal, the world's leading steel and mining company with a presence in 60 countries and an industrial footprint in 18 nations.

In a separate tweet Thursday, the CCI said it "finds no appreciable adverse effect on competition in respect of JSW Steel's proposed acquisition of Bhushan Power & Steel".

Through the proposed combination, JSW proposes to acquire 100 per cent of the equity shareholding and management control of Bhushan Power and Steel, according to the notice given by JSW Steel to the CCI.

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Neshant
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Re: Indian Manufacturing Sector

Post by Neshant »

One of the many reasons semiconductor manufacturing in India needs to expand..
It's as much a national security issue as any plane or tank.

China is exporting bugged Telecom and other electronic equipment and components even to the US getting it past their Dept. of Defence.
Imagine what they are selling to clueless India where govt and corporate depts hardly do a thing to verify the items they purchase. Not that the babuz even have the means or a clue how to verify such equipment..

Meanwhile Indian govt and companies continue to use China designed Telecom equipment and Phones.

-----

Explosive Report Details Chinese Infiltration Of Apple, Amazon And The CIA
Nested on the servers’ motherboards, the testers found a tiny microchip, not much bigger than a grain of rice, that wasn’t part of the boards’ original design. Amazon reported the discovery to U.S. authorities, sending a shudder through the intelligence community. Elemental’s servers could be found in Department of Defense data centers, the CIA’s drone operations, and the onboard networks of Navy warships. And Elemental was just one of hundreds of Supermicro customers.

During the ensuing top-secret probe, which remains open more than three years later, investigators determined that the chips allowed the attackers to create a stealth doorway into any network that included the altered machines. Multiple people familiar with the matter say investigators found that the chips had been inserted at factories run by manufacturing subcontractors in China.

His speech is also expected to focus on how China leverages debt and its capital markets to force foreign governments to submit to its will (something that has happened in Bangladesh and the Czech Republic.

But while those narratives are certainly important, they pale in comparison to Bloomberg's revelations, which reported on an ongoing government investigation into China's use of a "tiny microchip" that found its way into servers that were widely used throughout the US military and intelligence infrastructure, from Navy warships to DoD server farms. The probe began three years ago after the US intelligence agencies were tipped off by Amazon. And three years later, it remains ongoing.
https://www.zerohedge.com/news/2018-10- ... on-and-cia
Supratik
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Re: Indian Manufacturing Sector

Post by Supratik »

Neshant
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Re: Indian Manufacturing Sector

Post by Neshant »

Don't know where else to put this so i'll put it here.

A guy making a thap (himalayan wood burning stove) by hand.

Looks exhausting just watching him work at it, and he has no safety equipment.

Small enterprises need to find a way to flourish in a world of large companies.

Vips
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Re: Indian Manufacturing Sector

Post by Vips »

White Goods makers to turn champions of Make in India.
Manufacturers of refrigerators, washing machines and air conditioners are set to launch a Make in India thrust, mirroring those in smartphones and televisions after the government increased import duties. Investments in excess of Rs 6,500 crore in the white goods sector have already been lined up for the next two years, with more in the pipeline, industry said.

The manufacturing push follows hike in import duties on white goods and their components in September amid a decline in the value of the rupee and aimed at keeping the current account deficit in check. The government’s Make in India initiative is meant to encourage investments in manufacturing and generate more jobs.

The Rs 30,000-crore appliances industry has typically manufactured entry- to mid-segment products locally while relying on imports for premium models and critical components such as heat exchange coils and compressors. In air-conditioners, for instance, over 50% of components are imported.
“After the recent import duty hike by the government, it is no more a question whether to locally produce or import and sell,” said Gunjan Srivastava, managing director of BSH Household Appliances, which sells Bosch and Siemens machines in India.


The white goods industry feels import duties may rise even further, as happened with televisions and smartphones, to intensify the Make in India pitch.

Apart from the import duty hike, brands importing even from countries with which India has signed free trade agreements (FTAs) have realised that local manufacturing may be cheaper due to lower labour costs and not having to pay for high freight costs from overseas, said Kamal Nandi, Godrej Appliances business head and president of the Consumer Electronics and Appliances Manufacturers Association (CEAMA) lobby group.
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Re: Indian Manufacturing Sector

Post by Supratik »

IIT-Guwahati makes cheaper biodegradable plastic.

https://timesofindia.indiatimes.com/cit ... p&from=mdr
Haresh
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Re: Indian Manufacturing Sector

Post by Haresh »

Vips wrote:White Goods makers to turn champions of Make in India.
How many companies in India manufacture IT Comms cabinets?
Are there any Indian manufacturers?
Or do they all get imported from China/West?
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Re: Indian Manufacturing Sector

Post by hanumadu »

https://swarajyamag.com/insta/xiaomis-t ... export-hub
Xiaomi’s Two Component Partners To Set Up Manufacturing Plants In India; May Become Future Export Hub
Bart S
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Re: Indian Manufacturing Sector

Post by Bart S »

Haresh wrote:
Vips wrote:White Goods makers to turn champions of Make in India.
How many companies in India manufacture IT Comms cabinets?
Are there any Indian manufacturers?
Or do they all get imported from China/West?
There have been Indian manufacturers such as Vero President for years, though they might have been crowded out by cheap imports now. IIRC international brands like Rittal also have some manufacturing facilities in India.
Haresh
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Post by Haresh »

Bart S wrote:There have been Indian manufacturers such as Vero President for years, though they might have been crowded out by cheap imports now. IIRC international brands like Rittal also have some manufacturing facilities in India.
We install Comms cabinets all the time (in London) They seem to be made in China.
On a recent visit to Punjab last Sept/Oct I visited an area which specialised in metal work fabrication.
Comms cabinets are a very basic design.

The YouTube video above: https://youtu.be/gIAroTrErRM

Just gave me the idea, get a group of these guys together, they will need management and refinement, but the basic skills are there, I can see the demand for Comms cabinets rising in India as the economy develops.
The government just needs to tax Chinese Imports to make them unattractive.
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Indian Manufacturing Sector

Post by Peregrine »

Apple iPhone, Amazon Echo production moving from China to India – Bloomberg

HIGHLIGHTS
- Succeeding in India has become all the more urgent since US President Donald Trump launched a trade war last year

- Foxconn currently ships parts in from China, but hopes one day to manufacture displays and printed circuit boards locally

- “It’s a good business principle not to put all your eggs in a single basket,” says Josh Foulger, who runs Foxconn’s India operations
On a steamy summer morning, dozens of buses pull up outside a cluster of lowslung, blue buildings in Andhra Pradesh. Women dressed in colorful salwar kameezes disembark, their dupatta body scarves billowing as they make their way past hibiscus bushes and posters proclaiming, “Our aim, no accident.”
The night shift at Foxconn Technology Group’s mobile phone plant in Sri City is ending, and thousands of young women are punching out as others stream in to replace them. One of the arrivals is Jennifer Jayadas, a tall, slim 21-year-old who lives several miles away in a two-room hut with no running water.
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Supratik
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Re: Indian Manufacturing Sector

Post by Supratik »

Indian start-up develops first Indian all-electric heavy duty truck.

https://www.financialexpress.com/auto/c ... n/1711037/
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Re: Indian Manufacturing Sector

Post by vinamr_s »

What was the reason behind improvement in assembling technology and the flourishment of assembling units in India? Many companies (Apple, Xiaomi) have set up/are in a process of setting up factories to assemble their products. However, they are importing core components like semiconductor chips and other components on the motherboard from their factories in China etc. For that matter, we are not manufacturing engines and other complex tech too. So, how do we improve manufacturing of these components as we improved assembling tech? So, my questions to all are:

1. What is the reason behind a successful and rising assembling set up in India?

2. What is the reason for failing in manufacturing sub system level components or semiconductor chips in India?

(I will post my answer later in this thread)
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Re: Indian Manufacturing Sector

Post by vcsekhar »

1. Customs duties were imposed on the import of fully assembled phones, the market is huge and assembly in China is becoming more expensive.
2. There is no real base for high volume semi conductor manufacturing in India, it takes ages to setup a fab and other associated industries to make the high tech semi conductors required for smart phones, I don't see any likelihood of this happening in India for the near future.
3. The phone makers have already moved from the bare assembly to populating the main PCB's in India already (within 2-3 years of the process starting). I have heard that the complex multi-layer PCB's are also going to localized very soon.
4. There have been reports of companies setting up Lion battery plants, so this should also happen in the next couple of years.
5. All in all this is a pretty big success for Make in India.
vinamr_s wrote:What was the reason behind improvement in assembling technology and the flourishment of assembling units in India? Many companies (Apple, Xiaomi) have set up/are in a process of setting up factories to assemble their products. However, they are importing core components like semiconductor chips and other components on the motherboard from their factories in China etc. For that matter, we are not manufacturing engines and other complex tech too. So, how do we improve manufacturing of these components as we improved assembling tech? So, my questions to all are:

1. What is the reason behind a successful and rising assembling set up in India?

2. What is the reason for failing in manufacturing sub system level components or semiconductor chips in India?

(I will post my answer later in this thread)
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Re: Indian Manufacturing Sector

Post by Rishirishi »

Haresh wrote:
Bart S wrote:There have been Indian manufacturers such as Vero President for years, though they might have been crowded out by cheap imports now. IIRC international brands like Rittal also have some manufacturing facilities in India.
We install Comms cabinets all the time (in London) They seem to be made in China.
On a recent visit to Punjab last Sept/Oct I visited an area which specialised in metal work fabrication.
Comms cabinets are a very basic design.

The YouTube video above: https://youtu.be/gIAroTrErRM

Just gave me the idea, get a group of these guys together, they will need management and refinement, but the basic skills are there, I can see the demand for Comms cabinets rising in India as the economy develops.
The government just needs to tax Chinese Imports to make them unattractive.
The same story is for umteen industries like garments, footwear, construction equipment, toys, electronics etc etc. Modi government has eased business regulations drastically. India also has become a huge market, and growing too. At the same World seems to be going anti China and China has become expensive. India just needs to increase duties to draw incentives to manufacture in India.
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Post by Vips »

Sodium-ion battery maker Faradion mulling over manufacturing in India.

Sodium-ion battery maker Faradion Ltd on Thursday said it is actively exploring having a manufacturing presence in India for its batteries for diversified applications.

The company, which had won its first order from ICM Australia, is seeking to push its Sodium-ion batteries over Lithium-ion batteries citing "exceptional superiority" and play a significant part in revolutionising automobile/mobility, storage and mobile sectors across the world.

"India is one of the largest markets for mobile devices across the world. Recently, the country has also demonstrated significant progress in the adoption of EV (Electric Vehicle) technology, making it a priority market for Faradion," the company said in a statement.

Further, as the world seeks out alternatives to China-dependent Lithium-ion batteries, Faradion's Sodium-ion based technology offers a promising solution, it claimed.

"In line with this, Faradion is actively exploring manufacturing presence in India for its Sodium-ion batteries for diversified applications," the company said.

Faradion CEO James Quinn said Australasia is the next logical region for the company given the market conditions.

“Faradion is accelerating large scale industrialisation of its safe, low cost, Sodium-ion energy storage technology. After Australia, we foresee India as our next priority big market, given the huge growth in mobile devices and a bigger electric mobility market waiting to grow rapidly," he said.
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Post by Vips »

BHEL interested to produce oxygen concentrators with IISc technology.

Public sector power equipment major BHEL has shown interest in manufacturing oxygen concentrators with design and technical support from the Indian Institute of Science, Bengaluru.

Oxygen concentrators are machines that produce oxygen-rich air by sucking air into the machine and chemically removing nitrogen in it. The principle is roughly the same as catalytic converters, that clean exhaust fumes in cars.

In a concentrator, compressed air is passed through sieve beds containing Zeolite powder or pellets. Zeolite loves nitrogen, it adsorbs the gas.

Since atmospheric air is 78.09 per cent nitrogen and 20.95 per cent oxygen, when you remove nitrogen, you are left with oxygen-rich air. The nitrogen then gets naturally released from the Zeolite.

Typically, there are two canisters of Zeolite beds, so that when one is adsorbing Nitrogen, the other is rejuvenating itself by releasing the gas.

Increased need
The technology is not new or too complicated, but all the machines have all along been imported from China — perhaps because it was believed that the market is not very big. The machines cost about 1 lakh apiece, and needs electricity to work — as such oxygen cylinders have been a cheaper option.

The market for concentrators has been only remote places, or when patients require continuous supply of oxygen in which case the machine is a cheaper option than cylinders.

But now, due to the Covid-19 crisis, the need for the concentrators has increased sharply. The machines can work either in tandem with ventilators or, when the patient is not severely affected, used independent of the ventilator.

Prof. Praveen C Ramamurthy of the Centre for Nano Science and Engineering of IISc, has now designed a concentrator that is cheaper, simpler and more effective. The total cost of bills of material is estimated at ₹15,000, so the product that hits the market will be far cheaper than those imported.

Prof Ramamurthy told BusinessLine on Thursday that BHEL has come forward to take up manufacture of the concentrators. While no formal agreement has been signed, it is expected that the PSU could start producing the machines in sufficient numbers in a month’s time.

Tweaking the design
Right now, the output from the concentrator machine of IISc design contains over 70 per cent oxygen, but scientists are exercising themselves over getting the number to over 90 per cent, which Prof Ramamurthy believes is doable.

Further, the compressor capacity is also being tweaked, so that it requires less power. When that is achieved, the machine does not have to rely on grid-supplied electricity, it can work well either with batteries or solar power.

In a situation when the number of Covid-19 infections shoot up, calling for more ventilators, the oxygen concentrators would come in pretty handy, Prof Ramamurthy said. He also sees big export opportunities for the product — being very low cost, it can compete with the Chinese products.
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Re: Indian Manufacturing Sector

Post by Manish_Sharma »

https://swarajyamag.com/economy/why-cou ... e-to-blame

Why Couldn’t India Become A Manufacturing Behemoth? Our Bizarre Socialist Labour Laws Are To Blame 


| by Karan Bhasin
May 10, 2020, 12:26 pm |

Over the last couple of days, many states have announced bold factor market reforms such as labour reforms.

Some states have also undertaken substantial agricultural reforms such as Madhya Pradesh.

The common thing amongst these states is the fact that they’re all governed by BJP administrations.

It  would be naïve to think that COVID–19 pandemic can be dealt with by just the central government alone.

The economic fallout is going to be significant and comparable to the Great Depression.

This, therefore, means that we need a multi-staged policy response from the government and some of the long-awaited reforms have indeed been pending are land and labour reforms.

These are ideally supposed to be done at the state level, and therefore, by BJP governments finally taking a bold decision, they have revealed a larger strategy for economic revival over subsequent months which relies on higher investments, especially in manufacturing sector.

This also signals a shift from the Nehruvian-Socialism that has failed us for decades and perhaps, COVID–19 has finally started to dismantle the remains of the pre-1991 India growth model.

That being said, it is important to take a minute and acknowledge that every economist has over successive years advocated for a change in our land and labour regulations.

For instance, the Industrial Disputes Act required companies to seek permission before retrenchment of workers if the establishment had more than 300 employees.

This was subsequently lowered to 100 workers.

To not being able to fire people, irrespective of a change in business conditions, naturally meant that businesses would keep their number of employees at less than 100, or create a new firm for the 100th employee and every subsequent employee that was hired henceforth.

These laws and excessive regulations in the formal sector led to companies outsourcing work to informal enterprises which didn’t have to meet such compliances.

Consequently, India created a structure that incentivised informalisation of the economy and at the same time had a structure that encouraged companies to remain small.

This was also the essence of the chapter on dwarf firms in the Economic Survey.

Our structures that discouraged firms from getting large gradually led to a decline in our competitiveness even as other countries built mega-factories and huge global conglomerates.

With a large domestic consumer market like India, there was potential to have some of our key companies emerge as MNCs competing with the best in the world, but the reason why that didn’t happen was because our policies didn’t want companies to become big.

The laws and regulations that have been created were done to protect the dignity of labour.

The question is, were these norms successful in achieving the objective?

The answer is obviously ‘no’.

It is intuitive that informal workers are worse off with little to no job security and we know from our experience that these norms did result in greater informalisation.

Moreover, they prevented investments in India by large companies which would have helped us integrate further with the global value chains.

Consider this: While these norms were meant to protect those who were employed, they prevented investment which prevented the creation of job opportunities.

Therefore, while those in the formal sector may have benefited from these regulations, a large section of the population, especially those in the agricultural sector, continued to be in a state of disguised unemployment.

It shouldn’t be a surprise that India didn’t witness the kind of manufacturing revolution that some of the other emerging economies did.

The fact that some of these reforms have happened in land-locked regions such as UP and MP are also encouraging as our peninsular states had initiated some partial relaxation of these norms in the past and had some success in attracting industries.

Overall, the prospects of labour reforms come with one of the biggest corporate tax cuts in the world.

This, at a time when companies are looking at alternatives to China, is an excellent opportunity for India to seize the moment and several BJP ruled states have already started talking to some of these companies.

The interesting point here will be a politico-economic one.

That is, whether the Congress ruled states, or the other Opposition ruled states also start dismantling the Nehruvian Socialist model? If not, then, it becomes imperative for the BJP ruled states to be as aggressive as possible on some other reforms such as the new electricity Bill and a revised land acquisition amendment to name a few.

Success of these states in their transformation is critical not just for the overall economic recovery post COVID, but also for creating a new India Growth Model which can be replicated across other states.

If successful, then who knows, other developing and low-income countries may study (and try to emulate the same) for decades.

There’s a lot at stake here, and it’s important that we double down on reforms over the coming months.
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Re: Indian Manufacturing Sector

Post by Gerard »

Over the last couple of days, many states have announced bold factor market reforms such as labour reforms.
Wow. Seems it takes a major crisis to drive reforms.
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Re: Indian Manufacturing Sector

Post by Suraj »

Gerard wrote:
Over the last couple of days, many states have announced bold factor market reforms such as labour reforms.
Wow. Seems it takes a major crisis to drive reforms.
Historically, major Indian reforms have all been driven by the political space afforded by a crisis.
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Re: Indian Manufacturing Sector

Post by kit »

Suraj wrote:
Gerard wrote: Wow. Seems it takes a major crisis to drive reforms.
Historically, major Indian reforms have all been driven by the political space afforded by a crisis.
Labour laws and land acquisition seem to be last 2 hurdles for Indias rapid industrialisation .. am i wrong here ?
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Post by Vamsee »

Apple may shift a fifth of its production capacity from China to India: Report
A senior government official told The Economic Times; “We expect Apple to produce up to $40 billion worth of smartphones, mostly for exports through its contract manufacturers Wistron and Foxconn, availing the benefits under the production-linked incentive (PLI) scheme.”
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Post by Rishirishi »

Auto represents 35% of Indian manufacturing and 7% of GDP. This might fall sharply, if the 100% battery EV become competative. EV's require very few components, few repair parts and with significant lower break down. If the article below is correct, this may happen very soon.
Tesla's secret batteries aim to rework the math for electric ..
https://timesofindia.indiatimes.com/aut ... 738654.cms
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Re: Indian Manufacturing Sector

Post by csaurabh »

kit wrote:
Suraj wrote: Historically, major Indian reforms have all been driven by the political space afforded by a crisis.
Labour laws and land acquisition seem to be last 2 hurdles for Indias rapid industrialisation .. am i wrong here ?
Yes you are quite wrong.
That is 19th century/bania way of thinking.

Modern manufacturing doesn't need huge masses of land or labour. It needs good governance, good logistics ( roads, freight, electricity, water supply ) and a small but highly trained workforce. Most importantly it requires constant and massive R&D efforts which increase the effectiveness of manufacturing technology. As for land, Israel and Soko are premier manufacturing powers that makes a huge variety of world class products.. Israel is 60% desert, Soko is 70% forest. You can draw your own conclusions.
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Re: Indian Manufacturing Sector

Post by SRoy »

^^
True.
Future of manufacturing will be driven by intelligent robots. It is already happening as a part of Industry 4.0 automation.
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Re: Indian Manufacturing Sector

Post by nam »

The ramp up of Medical kit, PPE, swab kit, testing kit etc shows how one factor drives innovation and manufacturing: LARGE DEMAND.

This is what drives Chinese manufacturing.

In India, it is GoI which is the largest demand generator. Instead of generating demand, GoI gives out only gyan. Majority of it's orders goes to PSU, a dead end.
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Re: Indian Manufacturing Sector

Post by chola »

nam wrote:The ramp up of Medical kit, PPE, swab kit, testing kit etc shows how one factor drives innovation and manufacturing: LARGE DEMAND.

This is what drives Chinese manufacturing.

In India, it is GoI which is the largest demand generator. Instead of generating demand, GoI gives out only gyan. Majority of it's orders goes to PSU, a dead end.
They have a hybrid commie-capitalist system. The CPC generates massive demand too but their have voracious private sector as well that reacts on a dime.

That said, we are hearing that the PPE stuff imported from state factories or state approved private firms are generally good but those put you on a waiting list. The rest of the chini private sector was a f-ing minefield with some very bad ch1t coming from factories that were making stuff like lugnuts now into PPE. (This is observation from the Amreeki perspective. The demand was driven by US states getting stuff for their agencies, medical networks getting stuff for their hospitals, private companies getting stuff for their workers, etc. and the US federal government who not only compete against states for PPE but can inpound shipments ordered by states. It was a complete madhouse.)
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Re: Indian Manufacturing Sector

Post by kit »

csaurabh wrote:
kit wrote:
Labour laws and land acquisition seem to be last 2 hurdles for Indias rapid industrialisation .. am i wrong here ?
Yes you are quite wrong.
That is 19th century/bania way of thinking.

Modern manufacturing doesn't need huge masses of land or labour. It needs good governance, good logistics ( roads, freight, electricity, water supply ) and a small but highly trained workforce. Most importantly it requires constant and massive R&D efforts which increase the effectiveness of manufacturing technology. As for land, Israel and Soko are premier manufacturing powers that makes a huge variety of world class products.. Israel is 60% desert, Soko is 70% forest. You can draw your own conclusions.
What you are saying is right for high tech manufacturing and mass manufacturing but core industries like electronics, construction, machinery, etc do require manpower, skilled ones of course, and land.. is it not often said the land acquisition has been a bugbear for Indian economy? India is not spending enough on reskilling its workforce.

Hasn't India gone somewhere in electricity generation ( 3rd but per capita still low ) freight ( 4th ) , governance has improved but bureaucracy needs to be streamlined which is happening now as the bloating is pared down?
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Re: Indian Manufacturing Sector

Post by anmol »

#Breakingnews | Foreign Direct Investment limit in defence manufacturing under automatic route is being raised from 49% to 74%: FM Nirmala Sitharaman (@nsitharaman) briefs the media on COVID-19 package #AatmanirbharBharat
Twitter · 26 secs ago
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Post by Mukesh.Kumar »

Breaking news for defense of you haven't seen yet. Major reforms in defence manufacture today

YouTube Live
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Re: Indian Manufacturing Sector

Post by Mukesh.Kumar »

Jingo bahuti khush hua

Here's the details from CNBC Blog
[quote]Defence FDI Limit Under Automatic Route Raised; Focus On Local Procurement The government has raised the foreign direct investment limit for defence production under the automatic route to 74 percent from 49 percent. At present The government will also notify a list of weapons and platforms which will not be open for imports. Every year this list will be expanded, the finance minister said. A sep

Read more at: https://www.bloombergquint.com/economy- ... ures-today
Copyright © BloombergQuint

India will be developed as a hub of maintenance, repair and overhaul operations both for the private and the defence sector
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Re: Indian Manufacturing Sector

Post by Mollick.R »

Received in Whatsapp. Not sure about authenticity of the message.

Any any guru here throw some light on the subject :?: :?: :?:
It was the year 1946. Germany stood devastated by the Second World War. The Allies had won the war, and many German cities, including Munich, had been severely damaged by the British Royal Air Force. Munich, the picturesque capital of the Bavarian region of Germany, and centre of the country’s diesel engine production, had suffered as many as 74 air-raids. More than half the entire city had been damaged or destroyed.

On one gloomy morning that year, at the Munich Railway station, stood the Directors of Krauss Maffei, the reputed German engineering Company. They were waiting for the arrival of their guests from India. Founded in 1838, Krauss Maffei was a leading maker of locomotives of various types, and an engineering company with a formidable reputation. Unfortunately, the Company now stood devastated by the World War, since their factories had been destroyed by the Allied Forces.

The guests from India got down from their train. They were Directors from the Tata Group in India. If you had been there, you would have seen JRD Tata, the young, tall, lanky Chairman of the Group, get off the train. And accompanying him was a forty-year old engineer, Sumant Moolgaonkar, representing TELCO (now Tata Motors). They had come to Munich for discussions with Krauss Maffei, regarding the manufacture of locomotives in India. What they found, instead, were scenes of destruction and ruin.

The Germans requested the Indians to take some of their unemployed engineers to India, alongwith their families, and provide them jobs and shelter. The Directors of Krauss Maffei are reported to have told the Tata Directors – "They are very skilled people. They will do whatever you ask them if you take care of them. They can also teach your people."

This would have to be done without a formal contract, because the British, who were still ruling India, had forbidden Indian Companies from having any contracts with German Corporations, during those times of the World War. But this request was urgent, and compelling. Because in that year, with factories lying destroyed, unemployment in Germany was rampant, and the then German currency, the Reichsmark, had become almost worthless.

The Tata Directors agreed to this request, and assured the Germans that their people would be well looked after. The German engineers from Krauss Maffei then came to India, and they were provided good jobs and housing by the Tata Group. They were well taken care of, and they also rendered great service to Tata Motors. In 1945, Tata Motors had signed an agreement with the Indian Railways for manufacture of steam locomotives, and this is where the German engineers provided valuable technical expertise. They helped the Company manufacture locomotives, which were amongst the Company’s very first products.

In 1947, India became independent. In the 1950s, Tata Motors moved on to manufacture trucks in collaboration with Daimler Benz. Many years had now passed since that fateful meeting at the Munich Railway Station. Germany had substantially recovered from the ravages of the war, and the reconstruction effort had borne great fruit. In one of these happier years, the Board of Directors of Krauss Maffei was surprised to suddenly receive a letter from India.

This letter was from the Tata Group. It offered grateful thanks for the services of the German engineers, and it contained an offer of compensation to Krauss Maffei for the skills which had been transferred by the Germans to Tata Motors. Krauss Maffei was surprised, even taken aback at this offer. There was no legal contract, and therefore no obligation for the Tata Group to pay any compensation. In fact, I think, neither did this expectation exist, because the Tata Group had helped by providing jobs and shelter to the otherwise unemployed German engineers, during those dark days. So, the Germans were astonished, as they read the Tata letter.

This story was narrated many, many years later, in the 1970s, by Directors of Krauss Maffei, to Arun Maira, then a senior Director of Tata Motors. Arun Maira is one of India’s most respected and distinguished business thinkers today. In a thoughtful article that he wrote for the Economic Times in 2005 (thank you, Mr. Maira, for this wonderful piece), he recollects how two elderly German gentlemen met him as part of a business transaction in Malaysia, jumped up, shook his hands, and wanted to express their deepest gratitude to him. They then narrated to him this fascinating story, which, they said, is now part of their Company’s folklore.

One interesting and unexpected sidelight of this story occurred when Tata Motors was asked to provide a legally binding financial guarantee in the 1970s, but this was rendered very difficult because of the Indian Government’s regulations at that time. This matter was taken up to German bankers, who said that a guarantee on a Tata letterhead, signed by the Chairman, was more valuable than any banker’s guarantee.

I do not know what exact thoughts ran through the minds of Tata Directors in the 1950s before they sent that letter to Krauss Maffei, offering compensation where none was agreed upon or expected. But I think the Tata Group did this because it was the right thing to do.

The right thing to do is never defined by formal agreements or legal contracts alone. Neither is it defined by the expectations that others have of us. What is right is defined by our own high expectations of ourselves, by the culture of fairness and trust that we wish to establish. Are we being truly fair to the people and the Companies we work with? We always know, if we listen deeply enough to our inner voice, whether we are being totally fair and right. The Krauss Maffei story holds such a beautiful lesson for all of us.
nandakumar
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Re: Indian Manufacturing Sector

Post by nandakumar »

There are some errors in the chronology of events. But othereise they are substantially correct.
Telco the earlier name for Tata Motors started out making steam locomotives. By mid or late 60s Tatas stopped making steam locomotives as Railways themselves were switching over to diesel and electric locos.
Arun Maira started his career as Executive Assistant to Sumant Moolgaocar who was pretty much the top boss as far as Telco was concerned. JRD Tata pretty much left everything to him. Arun Maira was fast tracked and when Tatas started assembly manufacture of trucks in Malysia Moolgaocar picked Maira to head the operations there. But this was in the mid to late 70s. So the story about some old gentlemen narrating their stint in Jamshedpur is very likely. Maira returned to India in early 1980 to head the Pune operations of Telco.
dinesh_kimar
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Re: Indian Manufacturing Sector

Post by dinesh_kimar »

^ To add to the above, Tatas reportedly honoured Moolgaokar's contribution to the growth of their company by naming their vehicle after him - Tata SUMO.

He had a lot of foresight and vision, and insisted on opening an R&D department in the 1960s, called Engineering Research Center- ERC.

One of the products of ERC, a light truck called the Tata 407, entered into the market dominated by Japanese competition in 1986 - Eicher Mitsubishi, DCM Toyota and Swaraj Mazda and Allwyn Nissan.

The Tata vehicle broke the back and outsold the Japanese, possibly the first time in the world a home grown product has defeated the Japanese competition.

(The Tata 407 R&D team was headed by Mr.SK Shome, M.Tech , Machine Design from one of the IITs, who got it from clean sheet into production in a record 18 months. He was awarded the first ARAI Engineer of the year award in 1994).
Mollick.R
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Re: Indian Manufacturing Sector

Post by Mollick.R »

dinesh_kimar wrote:^ To add to the above, Tatas reportedly honoured Moolgaokar's contribution to the growth of their company by naming their vehicle after him - Tata SUMO.
This part I'm aware about. Courtesy Whatsapp University :lol:

The WA msg mentions about Shri SU.MO regularly eating out lunch at some dhabas to get first hand feedback from truck driver community.

Will search for the message and definetely post that here.
Mollick.R
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Re: Indian Manufacturing Sector

Post by Mollick.R »

Here we go............
Every day top executives of Tata Motors used to take lunch together but from some days, Sumant Moolgaokar used to take his car and go out during Lunch Hours and come back as soon as the Lunch Break was over. There was a grapevine that he is offered lunch at a Five Star Hotel by some dealers of Tata.

One day when some executives followed him during Lunch Break, they were surprised to see that he stopped his car at one Highway Dhaba, ordered food for him and sat with the drivers of trucks who were eating food at that dhaba. He discussed with them what was good and what was bad in a Tata Truck, jotted down and came back to his office. He used to improve upon the experiences of drivers. Such was Sumant Moolgaokar's zeal for improving the Tata Vehicles.

Tata Sumo is the biggest corporate tribute paid by any company to it's executive. Su stands for Sumant and Mo stands for Moolgaokar in this brand name.
https://www.quora.com/Tata-Sumo-is-one- ... rtial-Arts

https://www.linkedin.com/pulse/untold-s ... ry-teller-
Mollick.R
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Re: Indian Manufacturing Sector

Post by Mollick.R »

Straight from the horse's mouth (a good blog available at tatamotors.com)

10 Things You Didn’t Know About Tata Motors
07 June, 2017

Tata Motors has always had a strong pioneering spirit. Under our sub-brand, TAMO, we recently introduced India's first sports car - Racemo. We have taken huge steps down the road to sustainability by launching India's first CNG bus, a Hydrogen fuel cell bus and a wide range of Electric and Hybrid buses. We have introduced world class trucks on Indian roads with the Prima, Ultra and Signa. Tata Ace was another first from us, a small truck that is ideal for last mile delivery.

Here's a list of things about us that you may not know.

Tata Motors is 70 years old. We started out as Tata Engineering and Locomotive Company (TELCO) in 1945. And yes, we made locomotives!Our first trucks bore the Mercedes logo as we had a technical collaboration with Daimler Benz.
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Three of our trucks took part in the Geneva-Bombay rally in 1955, travelling 8,000 miles without a breakdown. Here's JRD Tata greeting the drivers.
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We have been exporting our trucks for more than 50 years and today, we export them to 45 countries! Our first exports were trucks to Sri Lanka (then Ceylon) in 1961.
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In 1969, the Mercedes three-pointed star gave way to the 'T' for Tata. A time for celebration!
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Launched in 1986, the Tata 407 shattered Indo-Jap competition including Eicher-Mitsubishi, DCM Toyota, Swaraj Mazda and Allwyn-Nissan. Popularly known as just the '407' the vehicle transformed the light commercial vehicle space with an Indian built solution.
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Tata Sumo, our first multi-utility vehicle, was named after Sumant Moolgaokar, a former MD of Tata Motors.
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Tata Motors supplies fully armoured combat vehicles to the Indian Army. That relationship goes back decades. Here's a picture from the archives:
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What was Made-in-India with fully Indian technology? The Indica, India's first fully-indigenous car!
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More recently, Tata Prima, the 'World Truck', competes directly with the Volvos, the Mercedes and the Scanias of the world, not just in terms of design but also in terms of cabin comfort and engine performance. Tata Motors also has a one-make racing series called the T1 Prima Truck Racing Championship, with the 2017 edition hosting the sport's First Woman Driver.
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Did you already know some or all of these facts? Let us know in the comments below!

https://www.tatamotors.com/blog/corpora ... ta-motors/
Varoon Shekhar
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Re: Indian Manufacturing Sector

Post by Varoon Shekhar »

Does anyone know the status of Videocon Industries? Reason I ask, is it the group is a giant, and it was in pretty serious debt trouble a while back. Has that been resolved in any way? And more importantly, are the diverse industries and companies - electronics, oil exploration, appliances, satellite tv - functioning.

Videocon has plants and operations all over the world. It took over the colour picture tube business of Thomson of France, making it the 3rd largest colour picture tube producer in the world.

Any update ?
kit
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Re: Indian Manufacturing Sector

Post by kit »

Varoon Shekhar wrote:Does anyone know the status of Videocon Industries? Reason I ask, is it the group is a giant, and it was in pretty serious debt trouble a while back. Has that been resolved in any way? And more importantly, are the diverse industries and companies - electronics, oil exploration, appliances, satellite tv - functioning.

Videocon has plants and operations all over the world. It took over the colour picture tube business of Thomson of France, making it the 3rd largest colour picture tube producer in the world.

Any update ?
http://www.videoconindustriesltd.com/

Corporate Insolvency
Varoon Shekhar
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Re: Indian Manufacturing Sector

Post by Varoon Shekhar »

^
Thanks, but does work continue at the Videocon plants in India and globally? Or has everything shut down pending resolution of the debt/insolvency issue? There's some pretty important and/or sophisticated stuff, including colour picture tubes, and oil exploration.
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