Adopt Higher Levels of Mechanization in Rubber Industry To Improve Quality And Reduce Cost - T.K.Mukherjee

Interview With
T.K.MukherjeeT.K.Mukherjee
CEO Mentor & Strategist
Past President AIRIA
©2015 - Published by RubberMachineryWorld. http://rubbermachineryworld.com

Hello Mr. Mukherjee. First of all thank you for accepting an interview with Rubber
Machinery World and sharing your thoughts. For over 4 years, that we have been
interacting, I have seen you transitioning within different leadership and
mentoring roles with inspiration and ease. I have been in awe of your energy level
and dynamism. So let me start with a personal question - what drives you?
11
The various driving forces which act on me are generally
situational. However, the biggest forces are:
• I still believe that my best is yet to come
• I always feel that as an Indian why can’t we be the
best
• There must be a continuous transaction with the
society under which I operate
However, strong driving forces do not always bring
success. I grew up predominantly during pre-91 era. We
had limited resources and hence ability to take up
challenges was less. With the opening up of the economy,
various opportunities started knocking at our doors and
thus we progressed faster. Failures still remained as a
great teacher in my life. One point is very relevant - the
definition of success changes from generation to
generation. We must appreciate that.
“..the definition
of success
changes from
generation to
generation…”

Tell me about a leadership position that you enjoyed the most? Why?
22
I had the good luck to work as a
CEO/MD for over 18 long years.
During this period the most
enjoyable and rewarding
experience was to transform a
sick PSU to a vibrant and
profitable MNC. This process
provided me a great learning -
how to change the mind-set of
the people. One very
challenging issue was to
convince the leftist trade
unionists about the fruits of
privatisation! There were
cultural issues, communication
issues - all providing challenges.
“One very challenging
issue was to convince
the leftist trade
unionists about the
fruits of privatisation! ”

I believe that Indian Rubber industry could grow @7%
CAGR during the next 5 years, thereby USD 14 Bn may
touch 19 Bn. Similarly as far as Indian exports of rubber
products are concerned it may touch 4 Bn, thanks to some
recent govt. initiatives. The demand growth could be
maximum in automotive sector - tyre and non-tyre rubber
products. However, due to shift of energy sources from
conventional to non-conventional, the rubber products
sector depending on usage of fossil fuel may not grow at
the same rate.
“Indian Rubber industry could grow
@7% CAGR during the next 5 years”
Indian rubber industry has a turnover of around USD 14 Bn with exports touching
USD 2.67 Bn. Where do you see this in next 5 years and which subsector will have
the most significant growth?
33

Apart from serving the interests of Indian Rubber Industry, you have also been
a successful business leader of a leading MNC business brand in conveyor belt
industry. Since you started, what have been the major changes in your business
ecosystem? And how have you repositioned yourself against the challenges to
sustain your company’s leadership position in the conveyor belt industry?
44
My 18 years’ experience in conveyor belt
industry (till Sept.’13) is a mixed one. The
growth was achieved primarily in correctly
understanding the intrinsic needs of the
customers early. Once that was mapped, then
we could mobilize all the available resources
at a fast pace in meeting them. The
manufacturing process was re-designed to
make it customer centric. And finally
improving the core competence of the team
members through series of HR initiatives in
order to continuously accept and win
challenges. The company’s leadership position
was achieved by networking with all the
stakeholders as per the business need.
“The growth was achieved
primarily in correctly
understanding the intrinsic
needs of the customers
early”

What kind of technological improvisations had you bought in to your business?
Was this sufficient?
55
By being part of a MNC, we always had the opportunity to obtain
continuous exposure of a world-class technology, whereby the customers
always found the winning products from the company. Be it application
issues or environmental issues or capex issues - we could always provide a
workable solution. We always believed that improvement was a
continuous process; hence the question of ‘sufficiency’ did not arise.
“(Indian
entrepreneurs)
are not equally
informative of
what is possible
within the
country ”
66 I know you have travelled widely and visited many rubber goods
manufacturing plants. What is the level of awareness about
developments in Rubber Machinery and production technology
today in India? Is it different globally?
Now a days the Indian entrepreneurs are travelling outside India
quite a bit. They have a fair amount of knowledge of what is globally
available. But they are not equally informative of what is possible
within the country. It could be a good idea that Indian Rubber
machine companies may jointly undertake to showcase to Indian
entrepreneurs their capabilities by organizing pan India road shows.
This would also help them to understand their customers need.

77 Today you also consult clients in rubber industry. Is the machinery industry in India
currently meeting your client’s technology requirement? Do they import machinery?
If yes, how do you feel this gap in technology be bridged over next 5 years?
The Indian Rubber Machinery manufacturing industry
need to grow in terms of scale, cost competitiveness
and quality. Chinese machines with comparable
quality are still cheaper. The ultimate customers have
more reliance on American/European/Japanese
machines, equipment and process, though these are
expensive. We definitely need to bridge this gap.
Perhaps many companies are trying to manufacture
all the major machines as a package deal. Instead of
that, we need to focus on mixing,
calendaring/extruding, curing press etc. Technology
tie-up/equity partnership with American/Japanese
companies may help Indian companies to achieve
world class standard during the next 5 years’ time. In
this direction the ‘Make in India’ initiative, Mumbai-
Delhi Economic corridor could provide an excellent
opportunity.
“The Indian Rubber
Machinery
manufacturing
industry need to grow
in terms of scale, cost
competitiveness and
quality”

88
“National Policy on
Rubber (NPoR) is an
excellent initiative in
addressing various
issues of the
stakeholders -
though sometimes
these are
diametrically
opposite.”
Rubber sector in India has grown to over 6000 units and is today a highly labour
and energy intensive sector. Employing over half a million skilled manpower and
many unskilled, what difference do you see the National Rubber Policy making
to the stakeholders including the rubber machinery sector?
National Policy on Rubber (NPoR)
is an excellent initiative in
addressing various issues of the
stakeholders - though sometimes
these are diametrically opposite.
Definitely issues related to Rubber
Machine industry must also be
highlighted as they are also a
stakeholder.
Handling skill level of a labour
intensive industry like Rubber is a
challenge. However, under the
NSDC umbrella we are quite active
in sectoral skill development
initiatives under RSDC. This would
help sustaining the growth
momentum as mentioned earlier.

99 Currently, you play a very key role as a strategic mentor to CEO’s and also involved
in financial sector. SME’s today starve due to lack of “timely” funds and this has
been the case in the past too. No change. Is this situation improving? Is there
something that SME entrepreneurs can proactively work on to attract funding?
I agree that finding fund for growth of SME sector
continues to be a problem. Banks have their issues
like - mounting NPAs, high cost of operation etc.
Similarly SME sector has their own problem of
organizing collaterals and proportionate equity
contribution. Various schemes of govt. are also not
known sufficiently to the entrepreneurs. In this regard
Industry associations may take a leading role in
facilitating the process. The financial conditions of
many state governments are weak and uncertain- as a
result they are able to meet their own commitments.
Actually a sustained work is necessary during the next
5 years in order to improve the lot. The Indian rubber
industry is dominated by SME sector, hence such
improvements can only ensure growth of this sector.
“a sustained work is
necessary during the
next 5 years in order to
improve the lot.”

1010
Great! And one last question, what would be your advice on machinery to your
clients and entrepreneurial business leaders in rubber industry?
The Indian entrepreneurs
must accept that only by
adopting a higher degree of
mechanization they would be
able to improve the quality
and reduce cost. However,
they are somewhat uncertain
about the skill level of their
own people- Blue and white
collar. There has to be an
engagement program
involving all the work force.
There has to be a low cost
mechanization program. If one
looks at some of the
successful SME rubber
companies, this point would
be well established
“Only by adopting
a higher degree of
mechanization
they would be able
to improve the
quality and reduce
cost.”

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Adopt Higher Levels of Mechanization in Rubber Industry To Improve Quality And Reduce Cost - T.K.Mukherjee

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Adopt Higher Levels of Mechanization in Rubber Industry To Improve Quality And Reduce Cost - T.K.Mukherjee