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S S Natu Plastics & Metals |
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At a time when Chinese industries are making a scramble for the Indian market with their cheap products, few Indian companies dare to set up shop there. But S S Natu Plastics & Metals Pvt Ltd, a 100% export-oriented unit manufacturing brushless motors, is an exception. Mr. D A Vanjani, Chief Executive Office of the company, is the brain behind this move. Says Mr. Vanjani: "Compared to a majority of small units in the Wagle Industrial Estate, Thane, S S Natu, situated on a larger plot is located opposite Ambika Nagar in Thane." The company has also a plant at SEEPZ in Mumbai. The brushless motors capacity in its Thane plant is 10,000 units per month. Is S S Natu involved in plastics & metals? Why does not the company's name reflect its product's profile? Mr. Vanjani explains:" S S Natu was taken over by us in 1991. From 1991 onwards up to 1996, we were doing only sub-contracting in the field. I myself am from sub-contracting, working for the firm, Lawkhim. Since we had taken over an existing, established company, we did not want to change the name. Then, our first set of brushless motors rolled out of the factory in 1996. From then onwards, we have been experimenting with something new in motors for the various industries". The breakthrough came in 2001, when the company received orders to the tune of 3 times of its production capacity. By that time, S S Natu has established good business in the USA. Says Mr. Vanjani: "I have been travelling to China many a time. So, I thought why we should not establish a unit there. At the same time, our US business partner offered some venture capital. Everything clicked, and our unit's foundation in China was laid". S S Natu, which has a strong technical base in brushless motors, was offered US$ 1 million as technical fees initially. It was a record of sorts. Within 3 months, assisted by engineers and technical personnel from Maharashtra, S S Natu completed its plant in China. "The entire plant measuring 30,000 sq feet was established. Our technical men taught the Chinese how to make these brushless motors of ours, which are unique, and one of a kind. S S Natu has 49% equity in the venture, with the US venture capitalists taking the rest. The brushless motors from that company are being supplied to the US". Mr. Vanjani feels that recession is only "a fear of the mind" and that any company can survive, and do well if it puts 'innovation' before everything. Mr. Vanjani's statements are often punctuated with the words "innovation is key to success". His company, though its mainstay is brushless motors, has been doing R&D and developing new products year after year. "At present, I have 3 patents on brushless motors - one each for fans, refrigerators and electric two-wheelers. With our motors, the fans can save 60% power on slow speed and 30% power on high speed. Besides, with our motors, the fans will automatically slow down if the number of people in the room is less, and will stop when the room is empty. We have developed such unique sensors in our brushless motors. These are undergoing tests", says Mr. Vanjani. Mr. Vanjani is excited about these innovations. "The fans with our brushless motors may be a little costly. But in each fan there will be a saving of Rs 70 per month, and one can imagine the huge saving in a year, and when you have a number of fans. The payback period for each fan will be only 10 months. With energy saving assuming importance in the present context, our brushless motors can play a major role". Tracing the origins of sub-contracting in the 1980s, Mr. Vanjani says: "I was initially working for Lawkhim, which had orders to make motors for the company Carrier. That time, we used to work out standard norms for the number of motors a worker can make in a day. With trade unions and other tactics, workers used to deliberately prolong the periods in working out the time-standards. I suggested sub-contracting to Lawkhim, and its boss prompted me to start my own firm to do such sub-contracting. This was the seed for my entrepreneurship". "Brushless motors have a wide range of applications since these save energy. At present, we are supplying to electric vehicles, military applications and special categories. Most of the buyers are OEMs and the applications are customised. Our first efforts in the US, which succeeded, were brushless motors for bicycles. Even today you can see Curry brand bicycles running on our brushless motors in the US. Though S S Natu is a 100% EOU, in the last two years, it has been supplying some output in the Indian market too. Says Mr. Vanjani: "Supplying as a OEM, we are facing no problem abroad. Since most production goes abroad, and our US venture takes care of marketing there, financially also we are sound. We tried to demonstrate our brushless motors to the Railways, which was happy with them. But we found that without bribing we cannot sell to government organisations in our country. This is a very discouraging factor for private sector in India. Anywhere you go, bribes and graft are a hindrance". Mr. Vanjani also took pride in the fact that his company has a good team in R&D. Besides, unlike most of the small units, S S Natu pays special attention to the safety and health of its workers. Pointing out a chimney, under which workers varnish the motors, he says: "See, the fumes in the varnish can have a long-term effect on the workers' health. Though most of the SSIs flout such norms, we take special care to see that our workers are not affected by negligence". Mr. Vanjani swears by his vast experience in China, and considers commissioning of a plant in China with a capacity of 30,000 motors per month as a great success. Mr. Vanjani says he was also unfazed by many who criticised about exposing Indian technology in the land of the Red Dragon. "We, of course, like a guru has certain guru mantras that have guarded our technology from being copied in China", says Mr. Vanjani.
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