EPCOS : Empowering the nation for profuse energy access

The Indian electrical industry has demonstrated its capacity in nation building. It is the catalyst to the growth of the core sectors of industry and to the development of infrastructural facilities. Power has always been the key to industrialisation, but the capital- intensive nature as well as the high gestation period has put constraints on its generation.ENGINEERING REVIEW is in interface with Mr. H. S. Banerjee for imbibing an overview of the electrical & electronics industry.

Mr. HS Banerjee , Managing Director,  EPCOS India Pvt. Ltd.

Q. Indian electrical industry possess incredible power to improve the overall standard of living in the country, Please brief us about recent initiatives undertaken in electrical space? Which are your focus areas?
Considering the current concerns with global warming and energy security, the electrical industry has many opportunities to contribute considerably to sustainable development. TDK-EPC in India focuses on design, manufacture and supply of components systems for applications such as energy conservation, power quality improvement/ power conditioning, safe and efficient use of electrical energy in diverse applications such as domestic appliances, electronic gadgets, transportation, and industrial automation. Thus, we help to empowering India to provide access to energy for all, support the sustainable development through energy conservation and dominant use of renewable energy sources, optimize the utilization of installed capacity through deployment of appropriate technologies, and contribute to developing affordable domestic appliances.

Q. What are the growth opportunities for electrical industry in India? Being the key player how do you plan to position your company in electrical sector?
Some of the emerging opportunities in the Indian power sector electrical industry include generation from renewable energy sources, energy conservation, power quality improvement, the efficient safe use of electrical energy. We design and manufacture film capacitors for power factor correction (PFC) , AC capacitors, DC capacitors and power electronic capacitors at our factory in Nashik (Maharashtra). At our plant in Kalyani (West Bengal) we develop and manufacture soft ferrite cores.
We have positioned ourselves as a preferred supplier of high quality components and solutions to sectors such as renewable energy, industrial automation, automotive, traction, transmission & distribution of power, domestic appliances, consumer electronics, telecommunication, lighting etc. This we have done through various initiatives such as capacity expansion, launch of solutions for energy conservation and power quality improvement, innovative products for domestic appliances etc.

Q. As per your opinion what is the role of research & development in product performance? What are the R & D initiatives in your organization?
The global industry is making a transition from resource centric to knowledge centric model. I feel that in the future the competitive advantage would be based on knowledge and innovation and R & D has a very crucial role to play in ensuring the competitive advantage of the organization as well as the country. Therefore, in our business model, R&D plays a pivotal role in ensuring sustainable competitive advantage. Creation and maintenance of R&D resources is part of our strategy and we consciously invest significant resources in R&D every year, culminating in hosting of three global R&D centers in India for our group TDK-EPC worldwide. Our R&D activities include the innovation & development of new products – especially so called green products which are eco-friendly – to meet emerging customer demands. Furthermore we strive for further miniaturization, cost reduction and to enhance quality and reliability of our products at the same time.

Q. Indian market is price sensitive, what is your marketing strategy for India to counter this situation?
We continuously strive to meet the price demands of the Indian market at the same time offering our global quality products, which is very important as a multinational corporation. We export over 60 percent of our Indian production worldwide and supply the same quality to every corner of earth. Some of our strategic initiatives to remain competitive include delivering word class quality in the framework of long-term supply contracts with OEMs with customized design to suit each application at very competitive prices. Our business model is based on partnership – both on sourcing and sales side, i.e. localization and indigenization of raw materials. We offer strong application engineering and CRM on the basis of continuous innovation in products and processes. And we are manufacturing on a global scale. This approach has resulted in our market leadership both in India as well as globally for almost all our product groups manufactured here.

Q.What is your quality policy for the business?
Our advanced quality system and the zero-defect campaign that has been running since 2003 enable us to continually improve our processes and also the quality of our products and solutions. The awards we have won from many of our customers such as Whirlpool, Videocon and Godrej Sara Lee, just to mention some of the more recent ones, are proof that our customers appreciate this strict course. These days, ever more exacting quality requirements are being passed down through the entire production chain. We meet these demands and are certified to the international quality system standard ISO 9001, the ISO TS 16949 standard for the automotive industry and IRIS (International Railway Industry Standard) certificate from the European Railway Industry Association UNIFE.

Q. Please elucidate the export performance of Indian electrical products? What is the demand scenario of Indian products in global market?
The export performance of Indian industries is still sub-optimal compared to its potential and global opportunities. But on the positive side the export performance is improving and there is more and more acceptance for “Made in India” products. If Indian software can be successful globally, why not Indian hardware? The Indian Industry should gear up to global quality requirements and invest in creating global scale.

Q. According to you what are the factors affecting to electrical business?
Some of the factors adversely affecting the industry include the shortage of good technical manpower and lack of infrastructure. We need a congenial environment for manufacturing including legal, social and political framework and a strengthened regulatory framework for quality and safety needs.

Q. What are the key technological trends that are driving electrical industry?
While the technological trends are more products specific, some of the generic trends affecting electrical industry are the need for compact products/ miniaturization and – as already mentioned – green and energy-efficient products and power quality improvement as well as for enhanced quality, safety and reliability.

Q. According to you what are the measures taken by Indian manufacturers in order to compete with global players?
While Indian manufacturers have displayed their will to compete with global players and conquer and have taken many measures in that direction, I would rather like to concentrate on further needs. India must continue to invest in infrastructure. We – the manufacturers – have to continue to improve quality and reliability and offer world class quality at competitive prices. Moreover, we must enhance our design and development strength to bring out innovative products and thus create intellectual property wealth. We must gain international certification as per international standards and do cross border acquisitions. India has many assets. A very important one is our dedicated people.

Q. How do you compare the Indian electrical industry against the global industry?
I have earlier mentioned that the industry is far away from its potential. Depending on the scope and the sources of information, we are just 1 to 3 percent of global production. But I think we are on par with the global industry in terms of design capability. We just need skill development, productivity, infrastructure, investment in creating global scale and supportive policies.

Q. How do your foresee the future of the Indian electrical industry?
I am very bullish on Indian manufacturing in general and specifically Indian electrical industry. We have all the essential ingredients to be a global manufacturing base. Apart from manufacturing, I also expect India to be a home to lot of R&D centers for large multinational corporations.

Q. Please elucidate the product portfolio of your company & do you have any plans to launch new products in the market in near future?
TDK-EPC’s global product portfolio includes ceramic, aluminum electrolytic and film capacitors, ferrites and inductors, high-frequency components such as surface acoustic wave (SAW) filter products and modules, piezo and protection components, and sensors. With this product spectrum we offer a broad range of products and solutions of outstanding value from a single source and focuses on demanding markets in the areas of information and communication technology and automotive, industrial and consumer electronics. We have launched many new products which supplement and complement our existing product lines and facilitate a transition from component manufacturer to full spectrum solution provider. Specifically for India, we offer medium-voltage (MV) capacitors for a wide range of applications such as power factor correction, power electronics, energy storage and surge suppression. These are used in utilities, manufacturing companies, test equipment and more. New product lines for our market also include thyristor modules, a new series of full-featured power factor controllers, low-voltage (LV) and MV reactors, MV vacuum capacitor switches, LV and MV complete power factor correction systems, and harmonics filters. Some of the launches specific to Indian market in the near future would be in the areas of compact power capacitors, Automatic power factor panels/ systems with patented switching technology, value added packaging to OEMs etc.

Q. What is your vision for your company?
The combination of TDK’s electronic components business with EPCOS is proving to be a very good complementary fit in terms of technologies, portfolio, global coverage, and market focus. In all industries served and regional electronics markets, our combined business enjoys a stronger position than was the case previously for TDK and EPCOS individually. On this basis, TDK-EPC is poised to assume the role of global leader in the field of electronic components, modules and systems. In India we want to play a pivotal role in design & development, manufacturing and marketing of our global products and be one of the leading units in the TDK-EPC group.

About TDK-EPC
TDK-EPC Corporation (TDK-EPC), a TDK group company, is a leading manufacturer of electronic components, modules and systems headquartered in Tokyo, Japan. TDK-EPC has emerged from the combination of the electronic components business of TDK and the EPCOS Group and markets its products under the product brands, TDK and EPCOS. The product portfolio includes ceramic, aluminum electrolytic and film capacitors, ferrites and inductors, high-frequency components such as surface acoustic wave (SAW) filter products and modules, piezo and protection components, and sensors. With this product spectrum TDK-EPC offers a broad range of products and solutions of outstanding value from a single source and focuses on demanding markets in the areas of information and communication technology and automotive, industrial and consumer electronics. The company has design and manufacturing locations and sales offices in Asia, Europe, and in North and South America.