With homegrown technology and process know-how, Aurangabad-based Grind Master Machines Pvt. Ltd. is now a preferred supplier to global automotive companies. After bagging the EEPC Star Performer Award and SME Business Excellence Award, it is now competing with its German and Japanese counterparts. CEO Sameer Kelkar shares the journey so far and roadmap ahead.

Interview By Niladri S. Nath | October 2016 Issue | The Dollar Business

TDB: You have already installed 4,500 machines across six continents till date. How did the journey begin?

Sameer Kelkar (SK): Indigenously developed machines for metal finishing, a rented garage, and a modest investment of Rs.30,000 – we indeed had a humble beginning in 1984.

Initially, we entered the cookware polishing machine segment with buffing machines for Nirlep Appliances. At that time, manual metal finishing works were trending. However, manual finishing had its own limitations on the parameters of speed, accuracy and consistency. We identified these gaps and started manufacturing automatic and semi-automatic metal finishing machines.

Subsequently, we started manufacturing polishing machines for stainless tube and automotive components. In those years, automotive companies in our country were using super-finishing machines manufactured in Europe and Japan. However, demand for indigenously developed micro-finishing and super-finishing machines started growing, since imported micro-finishing machines were exorbitantly expensive and had several operational issues. We grabbed this very manufacturing space. With time, we came across ample opportunities to diversify. However, we also put a strong filter to our selection process as we always wanted to be in the niche and technology-driven segments.

TDB: Please tell us about your core strengths and major strategies.

SK: Most of our innovations are need-driven and we have developed our core strength in manufacturing robust and tailor-made machines.
We started forging partnerships with companies abroad, which helped us venture into other fields of manufacturing. For example, after manufacturing superfinishing machines in 2001, we came up with mission critical micro-finishing machines for crankshafts and camshafts in collaboration with US-based IMPCO in 2003. Similarly, we developed gear deburring and chamfering machines for the domestic and international markets in partnering with Italy based SAMP.

TDB: Grind Master Machine today accounts for 20-25% of machine tools exports from the country. What was your outlook towards exports initially, and how has it evolved with time?

SK: We were not focused on exports during our initial days. But today, we have installed over 4,500 machines globally and exports constitute 60% of our revenue. We export majorly to China, US, and UK and we are now planning to enhance our presence in these three markets. Also, we have been supplying to Middle East and South East Asia. We are also looking to expand in Europe in a big way. We have even supplied our machines to leading Indian companies like Bharat Forge, Tata Motors, Precision Camshafts Limited, Netalkar Group, etc.

TDB: Your exports to China accounts for 40-50% of the company’s turnover. What kind of growth opportunities exist there? What is your export target?

SK: China is one of the largest automotive manufacturers in the world, producing 20 million cars per year. When we decided to enter the Chinese market in 2009 we knew that machinery requirements in Chinese automotive industries are quite different from that in India. They demand faster cycle times, reliability and international quality. Manufacturing machines to suit these standards translated to a phase of enormous learning for us. We worked very hard during 2009-2013 to make strong inroads into China. At the moment, we have more than 45 microfinishing and five superfinishing machines in operation in our customer’s manufacturing facilities across China. We are aiming to grow our sales in China to more than $10 million this year and the projection is to grow to $20 million in the next four years.

TDB: Your machines are now in use in USA, Europe, China. How challenging was it for you to break into that league?

SK: Our expertise in microfinishing helped us break into the league of global original equipment manufacturers (OEMs) such as Renault Nissan, Toyota, etc. However, the perception towards Indian manufacturers is still an issue for machinery manufacturers like us. We supply to US and Europe through collaborators who help us connect with the buyers. Apart from manufacturing machines, we have to offer comprehensive services such as annual maintenance services, optimisation services, etc. to capture and retain these markets. The Grind Master Nanofinish range of machines is now a registered trademark in India, USA and China, and has catapulted our company to the global league.

TDB: How competitive is machine manufacturing at the global level? 

SK: We are always developing break-through technologies. That is our way of staying ahead of the curve. There is fierce competition in the general purpose and standard machines category. Competition is less in the niche categories that we operate in. Having said that, in the niche category, we have to innovate and compete all the time in terms of customised design requirements, technologies, etc.

TDB: What are the major challenges that the sector is facing today?

SK: A major challenge for us, at the
moment, is to increase awareness about surface finishing machines in the
manufacturing industry.

TDB: How are you encouraging R&D?

SK: We have developed multi-disciplinary cross-functional teams comprising of designers, control engineers, assembly fitters within the organisation to spur continuous improvement and innovation. Needless to say, investment in R&D has grown over the years and is currently nearly 8% of the turnover.

TDB: To be a successful machine manufacturer, one needs to develop an eco-system of suppliers of quality ancillary parts. How did you manage this aspect?

SK: We have been developing a supplier base of more than 15 dedicated vendors in and around Aurangabad. Our Grind Master Vendor Management Group works with all the vendors; supporting them in developing systems to ensure high productivity and high quality.

TDB: How have you developed your manufacturing set up over the years?

SK: We have invested substantially in our machining, painting and inspection facilities to ensure quality manufacturing. The machining facilities have more than 20 CNC machines, while the state-of-the-art inspection facilities have CMM and other advanced equipment.

TDB: How do view government support towards exports?

SK: The government is promoting the manufacturing sector with incentives and subsidy schemes. ‘Make in India’ is having an extremely positive branding impact. However, this impact needs to be supported with infrastructure development and solutions to achieve ease of doing business.

TDB: What are the new technological innovations that you are working on?

SK: We have partnered with Balance Engineering in US to deliver dynamic balancing machines for crankshafts. Modern manufacturing demands more flexible and faster manufacturing technologies based on robotics and automation. You can expect a range of new solutions like robotic fettling in the future.

TDB: What’s your target for 2020?

SK: Our revenue in FY2014-15 stood at $20 million. We have set a revenue goal of $75 million by 2020. At present, we are manufacturing 450-500 machines a year. We would like to see this number
growing to 1,000.