Prateek Khemka, Owner of Aditya Industries discusses challenges of 2017 as a tier-2 level supplier and the hope that the future holds for tier-2 and tier-3 suppliers in India. As a manufacturer of precision materials, Khemka stresses on how important SMEs are when it comes to providing the giants with materials and instruments that are needed in the manufacturing process.
Could you brief us about your company?
In 1988, we started out with a single cycle parts unit and by the year 2000 we expanded with another unit by the name of Aditya Autos. In 2008, we expanded with another company named Aditya Components in Haridwar. In all we have three units, two of them being in Ludhiana. Our company manufactures sheet metal machines and tubular components for two-wheelers and e-rickshaws.
How much of a growth do you see or demand do you see for e-rickshaws
Our focus on e-rickshaws is going to be fruitful, as the segment is doing very well now. The growing push towards electric vehicle due to the government’s initiatives has resulted in a proliferation of e-rickshaws in many states. The e-rickshaws initially began with 1,000 units and have now reached 11,000 units. If the government provides further subsidies, then the future looks better for the segment.
Could you tell us how 2017 has been for the industry as well as for company?
The year 2017 was, in particular, very challenging for us. The GST implementation and after-effects of demonetisation has affected us in terms of pricing. Financially, some of our small vendors and even our customers their sales got impacted. Though I believe this is short term, in the long term things will straighten out eventually and the economic policies will prove to be beneficial. As we are in the two-wheelers industry, we have had to evolve a lot owing to how competitive the pricing had become. If you are an auto-ancilliary, or belong to the auto industry, investing in technology, automation and good machinery is the only way to survive. In that respect, we are up for any challenge, we are all geared up.
What are your plans for the auto expo components show and what are your expectations from the expo?
We are lining up alongside all the big companies, although we are starting out as a smaller competitor. That will definitely get us recognition and put us in the database. As far as the Auto Expo is concerned, entering into the database is a priority. The recognition that we get here will be converted to sales at a later stage maybe. For now the focus is on brand building and making connections.
As an exhibitor what would you be showcasing?
We would be showcasing our sheet metal machines and tubular components along with our brake tunnels. As an exhibitor, we will confirm our presence as one of the largest manufacturers of brake arms and anchor pins for two wheelers as well as complete solution providers for brake tunnel assembly.
What is your outlook for the auto component industry for 2018?
The future looks very good and holds plenty of promise, but as I mentioned before, the competition is very stiff. In order to survive we need to be better than the competition. Therefore we have to go on to lead manufacturing and prove ourselves everyday.
So what are your growth plans for 2018?
We are currently tier-2 and tier-3 suppliers for the OEMs. Our aim is to be tier-1 now, and directly supply to the OEM. We also hope to expand in the two-wheeler segment along with the electric segment. In the future, supplying to the four-wheeler front is also on the agenda.