Prosperity of Industry depends on investment in technology

1. Why is technological advancement necessary in industry?

Everyone has to move with the changing times. Because, Technology is changing rapidly. If the industry do not adopt the updated technology, then it may be difficult for them to cope up the upcoming challenges.

Technology is very important in industry, but what matters most is how much, and what benefits the industry is getting from technology.

Is the production cost reducing with it? Is the quality improving? Or is the wastage of raw material is being handled better?

The biggest advantage of upgrading the machine is that ultimately the consumer get a high quality product. A good quality product gets premium in the market. Such products are readily accepted in the market, and its demand remains constant.

If we look at the wood industry, the industrialist who has adopted core composer, calibrator, automatically the quality of his products will be of a certain specific standard. If the customer regularly gets products of a certain standard quality, then his confidence in the brand remains intact. We can say that the industry each strengthened by this.

The industrialists who have tasted this fact will keep on upgrading the technology. They will always keep on getting opportunities for survival. Because if they do not keep up with the technology, they cannot survive in the market for long. It will not be wrong to say that the producer who spends on technology or machinery is able to recover the expenditure on the machine (and technology) soon. The industrialists who are slow in adopting the upgraded technology, they supposed to lag behind in the market.

The industrialist, who fears to invest in technology to increase the quality, may have to bear more losses in the long run. I have seen many such industries getting their shutters down, who decided to working on traditional machines only. Therefore, wise investment is necessary for survival.

2. Normal life span of a technology? When should the industry think about incorporating the latest advanced machines?

As far as the operational period of the machine and technology is concerned, it depends on how updated the machine or technology is. Because along with addition of new features to the machine, it is also important that it should be robust. The experience and reliability of the machine manufacturer or vendor matters a lot for it.

We are proud that our machines are operating smoothly for 8-10 years. This trust of the industry gives us the strength to keep provide robust machines with the latest technology.

Most of the industrialist are able to recover the cost of the high-tech machine within two-three year. The industrialist who adopts latest technology are in a position to absorb the minor fluctuations in the market (of raw materials etc.) because technology reduces many of their expenses.

3. How will the industry be able to cover the depreciation cost of replacement of machinery with advanced technology?

There is no doubt that technology is upgraded in a year or two. The new technology adds more features. For example, earlier the end roller that came out in peeling was 25 mm, now it is 15 mm. But this does not mean that the machine that was bought two years ago is useless. That machine has its own utility and advantages. You have to buy another machine that is producing 15 mm. Because every machine has its own capacity. This is not a replacement; this is an addition, which will reduce the cost even more.

Earlier, there was third generation core composers. They used to produce 225 to 235 sheets. Now the fifth generation core composers are coming with a speed of 325 to 350 sheets. Obviously, the capacity is increasing. This is the wonder of technology. Now it is obvious that those who adopt such new technology at their earliest will be able to keep pace with the times. Those who wait for adopting the newer technology and wait for it to get established, may be left behind.

As far as the Pay Back period is concerned, it depends on the capacity of the particular industry. The more utilization of the machine, the faster it will be able to cover and compensate the cost. This is simple mathematics. After all, the investment in these machines is not being done to decorate the drawing room?

4. Have you ever calculated your annual expenditure on R&D (as compared to your turnover/profit)?

R&D is such a field on which you can spend to your full capacity. We never try to compromise on R&D. We try our best that the technologies being developed in the advanced countries (in the wood industry) of the world should be available to the Indian industry. Because if the industry will get advanced technology, the entire industry will benefit from it. Obviously, this will strengthen the market. Significantly, we are also exporting our machines to many countries.

5. What inspires you to do R&D?

However, the plywood industry is still a very small and unorganized market. The demand for machines is not as much as it should be. Still, everyone is trying their best to develop this market. Both the manufacturers and the government are working in this direction.

It is our responsibility also to make such machines that the industry can make world-class products while reducing its operational costs. We are proud of our small contribution in making India a world power.