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Volume 13 Issue 2 August 2016 ` 100

GOODS AND SERVICE TAX Overview of Goods & Service Tax August 2016

Impact of IoT on Hydraulics & Pneumatics

Hydro-Pneumatic Solution for Deep Earth Drilling www.martupdate.com

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foreword

Volume 13 Issue 2 August 2016 Annual Subscription `1200 Member INS Editorial Advisory Board

et

United India, One Mark

A S Shetty Saravjit Singh Manoj Kabre P S Satish

Hi Readers,

J R Mahajan LD Bhakre S M Dangi Sandeep Hingne

How often do you witness Indian politics at its co-operative consensual best? And indeed this monsoon session at the Parliament is proved to be an exceptional one with GST rolling out with majority votes! Much appreciation should be given to the Empowered Committee of State Finance Ministers for their exemplary ‘United we stand’ role! GST introduction will definitely benchmark Indian Tax Regulation system with addressing the economy for transition!

Managing Editor

Hari Shanker

Associate Editor

Hiya Chakrabarti

As the Prime Minister pointed out, GST will become the path breaker for poverty alleviation and development and it will facilitate ‘Make in India’, surely with one single market, business and investment will ease up! Introduction of GST will require a huge effort in shifting existing systems of tax payment and book-keeping. The Government has put a target of March 2017 to introduce the new GST Law and within December, this year all State and central government employees should be trained with systems and parameters to embrace this major reform! What the manufacturing industry can expect from GST? In India, one of the major drawbacks in investment options is taxation! In this issue of MART, the prominent industry leaders have expressed their opinion on how GST can be game-changing in manufacturing. While much hype has been made on its rollout positives, effective implementation is always a matter of concern. The forthcoming GST Law, if implemented properly can really transform the whole Indian economy. This issue covers articles, case studies from one of the major industry segments, Hydraulics & Pneumatics, along with regular columns! We thank you for your patronage and continuous support and wish to hear your feedback on every issue to make engineering interesting!

Siji Nair

General Manager

Priya Kundu

Senior Creative

Sayan Chaudhuri

Correspondent

Arnab Mondal

Editorial Assistant

Pramod Pillai

H R & Admin

Richa Chowdhury

Marketing & Sales ( Trainee)

Aishwarya Koshti

Regional Office Chennai

Subramaniam V +91 8925 847523

Bangalore Delhi

Manvendra Sharma +91 9845 108361 Vidya Rao +91 98189 88694

• Five years (60 issues) at `4800 You save `1200 • Three Years (36 issues) at `3000 You save `600 • One Year (12 issues) at `1200 Send your subscriptions to:  The Circulation Manager - Mart Infomedia Private Limited C-507, Wisteria Fortune, Bhumkar Chowk Marunji Road Near New Poona Bakery, Wakad Pune - 411057Tel: +91 70 3093 2700 Email: mart@martinfotech.in Web: www.martupdate.com & www.martonline.in

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Hari Shanker hari@martinfotech.in August 2016

Executive Director

Visit: www.martupdate.com Emag: www.martonline.in

Digital Edition at

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16 MAIN STORY

10 INNOVATIONS

16 An Overview of Goods & Service Tax 20 India: GST Impact: Manufacturing Sector

24 GST: Simplifying Tax Regime, Strengthening Business

28 GST for Manufacturing: A step towards ‘Ease of Doing Business’ in India

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Edited, Printed, Published and Owned by Hari Shanker A G and Printed by him at Orange Printers Private Limited, Plot No: 53, Vattiyoorkavu, Thiruvanthapuram- 695013. Industrial Business MART is a monthly journal published from Thiruvananthapuram Declaration No: A11/96303/14. Industrial Business MART reserves the right to use the information published here in any manne the Publisher no any of its employees accept any responsibilities for any errors or omissions. © All Rights Reserved August 2016


CONTENTS

42 ON FACE

Veena Parikh Managing Director, VERTEX Hydraulics Pvt. Ltd.

INDUSTRY FOCUS 32

Impact of IoT on Hydraulics & Pneumatics

36 Hose Assembly Cleanliness in Mobile Hydraulics

40 Borewell Rig: Hydro-Pneumatic Solution for Deep Earth Drilling

Columns 46 Silence is Golden 48 Wealthy Business through Healthy Customer Relationship

58 65

50 TECHNICAL ARTICLE

52 CASE STUDY

MART UPDATE THE LAST LEAF

IDA Veli, Titanium Post, Thiruvananthapuram- 695021 and Published from”Tharangam”, TC 37/2029, Kodunganoor Post. m. Views and opinions expressed in the journal are not necessarily those of the Publishers. RNI No: KARENG/2004/13614 er whatsoever. While every effort has been made to ensure the accuracy of the information published in this edition, neither August 2016

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Noncontact temperature monitoring in hazardous areas

I N NIIN O VAT I O NIIOONN NN NOOVAT VAT

Proven MI3 sensors now with Ex i certification

The MI3 system minimizes costs per measuring point: two intrinsically safe MI3 sensors can be used with one power supply and communication box installed up to 15 m away

All models from Fluke Process Instruments’ versatile MI3 infrared sensor series are now also available as intrinsically safe versions for use in hazardous environments. The intelligent miniature sensors are fully ATEX and IECEx certified for use in Zones 1 and 2 (gas) and Zones 21 and 22 (dust). The manufacturer supplies a complete intrinsically safe package including the sensor, a communication box, and an Ex power supply. All three components are IP65-rated, and each can be easily exchanged in the field without re-calibration of the entire system. One or two intrinsically safe MI3

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sensing heads can be powered by one power supply. The sensor cables can be up to 30 m long in total, providing high flexibility for setting up safe monitoring scenarios. Featuring a stainless steel housing with integrated electronics, the rugged MI3 pyrometer is the smallest stand-alone digital infrared temperature sensor for fixed installation on the market today. The MI3 series comprises pyrometers for various spectral ranges and applications, including the 1M and 2M short wavelength models with an excellent 100:1 resolution and 10 ms response time, which are suitable for monitoring temperatures up to +1,800

°C. Each intrinsically safe MI3 sensing head is labeled with the Ex i certification. In the case of the MI3100, this also covers the laser sighting function for easy positioning and aiming. MI3 sensors have excellent EMC characteristics and can be used in ambient temperatures up to +180 °C. Communication boxes are available with RS485, Modbus, Profibus, Ethernet, and Profinet IO interfaces and with four galvanically isolated analog outputs. Automatic head detection and digital communication between sensor and box enable plug and play. The ATEX and IECEx certifications open up

many additional areas for the MI3 series, for example steel industry processes using hydrogen atmospheres such as galvanizing, annealing, plating, and coating; hydrogen reduction in the solar industry; petrochemical applications such as sulfur recovery and monitoring boilers, reactors, pipes, and flare control; manufacture and storage of various chemical and agricultural products such as vinyl, fertilizer, starch, alcohols, and flour; fire detection; monitoring mining equipment and conveyors; hazardous waste disposal; and sewage treatment. For more details write to india@ flukeprocessinstruments.com

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August 2016

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I N NIIN O VAT I O NIIOONN NN NOOVAT VAT

Renishaw debuts all-in-one optical incremental encoder

VIONiCplus™ with ADT software

VIONiCplus™ with ADT software

VIONiCplus™ is Renishaw’s new highest performance optical incremental encoder system that has been launched as part of the VIONiC™ digital all-inone encoder series. The VIONiC design combines all necessary interpolation and signal processing inside the readhead and eliminates the requirement for additional external interfaces. To this end, Renishaw developed a new Versatile Interpolation ASIC (VIA) chip to perform all of the functions originally executed by the interface. Other features, working in conjunction with the Advanced Diagnostic Tool (ADT), bring the end-user

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wide-ranging monitoring and diagnostic feedback. The VIONiCplus incremental encoder is the culmination of research into the latest fine compensation architectures and advances in modern optimisation algorithms leading to unparalleled heights of performance. By leveraging advances in digital interpolation and signal processing techniques, Renishaw has built an encoder with SubDivisional Error (SDE) below ±10 nm – unprecedented from a 20 µm-pitch scale. VIONiCplus is the first conventional optical encoder to deliver the performance

advantages of ultra-fine pitch (<4 µm) systems with the additional benefits of better yaw and rideheight tolerance, easier installation, smaller system size, higher speeds, more flexible scale options including longer lengths, better dirt immunity and lower cost. An example application is scanning, for instance 3D LiDAR, which relies on precise constantvelocity control of a rotary motor in order to limit measurement errors at long range. The VIONiCplus incremental encoder is the ideal solution as it provides exceptionally

low SDE that minimises velocity ripple. Furthermore in motion control, the encoder’s high 2.5 nm resolution and low 1.6 nm RMS jitter reduce position settling time and increase stage repeatability. The VIONiC series of incremental encoders has CE approval; is manufactured by Renishaw, using strict quality controlled processes that are certified to ISO 9001:2008; and, like all Renishaw encoders, is backed by a truly responsive global sales and support network. The VIONiC encoder series is available to order from August 2016. For more details visit www.renishaw.com

August 2016


August 2016

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High-speed picker with safety functionality

I N NIIN O VAT I O NIIOONN NN NOOVAT VAT

Gripping modules

The electric SCHUNK EGP small component gripper is now available as a performance level d/SIL3certified safety gripping system.

The SCHUNK EGP Safety is the worldâ&#x20AC;&#x2122;s first performance level d/SIL3-certified electric small component gripper on the market with omnidirectional gripping force safety. In combina-tion with a special safety module it enables SOS and STO functions. If the assembly process is interrupted as a result of an emergency shut-down, the module automatically switches to safe operating stop. As opposed to existing solutions on the market the SCHUNK EGP Safety is supplied with power continuously in case of a safe operating stop, so that gripped parts are held reliably even without

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mechanical gripping force maintenance. As soon as voltage is applied the gripper switches back to regular operating mode without delay and without having to re-start the system. The SCHUNK EGP Safety is controlled by a safety module and four inductive proximity switches. Specialist for fast handling of small components Compared with electrically operated small component grippers that are available on the market the SCHUNK EGP features high speed with simultaneous high gripping force, which can be adjusted in two or four steps, depending on the model. All electronic

components are integrated within the device to save space. Brushless and therefore maintenance-free servo motors and a powerful junction roller guide ensure high efficiency and make the gripper a dynamic and high-performance spe-cialist for demanding Pick&Place applications. Since the high-speed picker is based on the platform of the time-proven pneumatic SCHUNK MPG-plus small component gripper, it is ideal for conveniently converting existing systems from pneumatic to electric, with no loss of gripping force. The unit is controlled via digital inputs, which allows users in many

cases to transfer the sensor of the SCHUNK MPG-plus to the SCHUNK EGP as well. The small component gripper is available with or without safety functions in sizes 25, 40, 50 and 64 with finger strokes of 3 mm, 6 mm, 8 mm and 10 mm and gripping forces of 38 N, 140 N, 215 N and 300 N, respectively. It is suitable for handling components with a weight of 0.19 kg, 0.7 kg, 1.05 kg and 1.25 kg, respectively. The closing times are 0.09 s, 0.22 s, 0.21 s and 0,5 s. In addition, the EGP 25 is available in a special high-speed version with a closing time of only 0.03 s and a gripping force of 7 N. For more details write to www.in.schunk.com

August 2016


August 2016

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MAIN FEATURE

An Overview of Goods & Service Tax

India Inc. is headed for Goods & Service Tax (GST), arguably the biggest tax reform since Independence.

Arnab Mondal arnab@martupdate.com

What is GST? GST is a single tax regime for all goods and services

from all the major parties

representatives of the State

in the world follow the GST

in the Rajya Sabha recently.

and Central Governments will

system in their tax systems.

The GST issue was also voted

look at every aspect of GST

for in the Lok Sabha and the

and will finally form a draft

Constitutional Amendment Bill

GST Law. The Government also

regarding GST was approved.

plans to launch GST software

in a country. Currently,

Soon after, an Empowered

the Central and State

Committee was formed with

Governments levy different

the Finance Ministers of all

taxes on a single product or

the States to devise the role

This is certainly a big step

service respectively. The aim

and introduction of GST in

towards the reform.

of GST is at putting an end

the Indian economy. Mr.

to the multi tax system with

Ashim Dasgupta, then Finance

one single tax regime.

Minister of West Bengal, was

For instance, the Central Government levies Service Tax, Production Cess and State Governments levy Value Added Tax (VAT), Sales Tax, Luxury Tax etc. Mr. Atal Bihari Vajpayee first raised the need for a single tax system, namely GST, during his tenure as the Prime Minister back in 2000.

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All the developed economies

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appointed the Chairman of this committee. Even, the UPA Government tried to introduce GST during its tenure. Now the Modi Government has once again taken up the matter. Mr. Amit Mitra, Finance Minister, West Bengal is the current Chairman of the Committee. The Government has crossed the biggest hurdle en route to GST. It received support

soon and mandate the training of State and Central Government employees with

Road Ahead

GST by December this year. A

However, there are miles

issued for the GST Law by the

before the GST comes in the

March 2017.

form of law. Firstly, over 50 per cent States (at least 16 States) have to pass the GST Bill in their respective assemblies within 30 days from the Bill passing in the Lok Sabha. Assam is the first State to have passed the GST Bill in the assembly. Then the President will form a GST Council where the

notification is expected to be

And only after all these steps the main GST Bill will be tabled for approval in the Loka Sabha to turn it into GST Law. The Government plans to roll out GST Law with effect from 1 April 2017. Rate of GST Various segments are

August 2016


With GST, chances of corruption in economy are expected to come down.

undecided over the rate

will help the manufacturer

who have clean tax record

sectors is much less than the

of GST. The Congress

present total income lower

otherwise he will not be able to

proposed GST rate.

demanded the GST rate

than his actual income.

claim the same.

Under the GST system, this

Points to Ponder

be fixed at 18 per cent. However, there is difference over the rate among the States and industry segments. Though the possibility is that the rate is likely to be fixed between 18 to 20 per cent. Reaping Benefits With GST, chances of corruption in economy are expected to come down. The pundits predict that GST will be more transparent as the Government will keep a better monitoring of the transactions of the companies. Let us illustrate in detail. Suppose a manufacturer sells a product to a wholesaler at Rs. 100. The best way to evade tax in this case is not providing any bill or receipt against the transaction which

August 2016

is not possible as there is no scope for hiding that undisclosed and undocumented transaction. Firstly, if the manufacturer hides the transaction he will not be able to claim the tax credit for the tax he paid while buying the raw materials. Secondly, even if he hides, soon as the wholesaler records the transaction for his tax credit later, the lack of discrepancy will come out. So, the non compliance of one will come out soon as the next one in business chain records his transaction. In a nutshell, if some does not pay tax, he will not be able to claim tax credit for the raw material he bought paying tax. And he has to buy raw materials from only those

Question arises on the viability of GST also. Some liken the system with VAT. And they fear that much as the GST

So, common man has to fork out more Restaurant bill, Phone bill, Insurance Premium, Movie Tickets, Banking Service, Broadband, Transport fare and tour fare.

system will eradicate chance of

Even while planning for a new

evading taxes, still it will make

apartment, expenditure will be

oneâ&#x20AC;&#x2122;s willingness to pay tax

higher. Currently, the Central

dependent on the willingness

Government levies 5 per cent

of the previous person in the

Service ax on purchase of flat.

business chain.

After that State Government

Besides, some sectors have been left out of the purview of GST such as Stamp Duty, Motor Vehicles, Alcohol, Tobacco and Petroleum. Besides, tax burden under GST regime will come down only for industrial and manufacturing segments. However, the sectors where Service Tax is applicable currently will have to bear increased tax burden as Service Tax in a number of

levies Stamp Duty which varies between 5-13 per cent from State to State. So, under the new system the buyer has to pay 18 per cent GST instead of 5 per cent Service Tax. But since Stamp Duty is outside the enlisted areas of GST, the buyer has to separately pay Stamp Duty which will, even at the lowest rate of 5 per cent, will take the buyerâ&#x20AC;&#x2122;s tax burden much higher. Now in the automobile

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industry, the Production Cess

Now if the wholesaler wants to

Now the wholesaler buys the

for small cars is 8 per cent but

earn profit of Rs 20 from that

product at Rs. 130 and with a

for luxury cars it is 30 per cent.

product he will sell the product

profit of Rs. 20 and sells it at

So, with the effect of GST while

at Rs. 163 to the retailer. The

Rs. 150. On this price it he has

the price for small cars will go

retailer likewise pays Rs. 16.30

to pay Rs. 15 as tax at a rate

up, luxury cars may become a

tax on the product and buys

of 10 per cent. Likewise as the

tad cheaper due to lower tax

the bag at 179.3. The retailer

wholesaler has already paid

burden.

sells the product with a profit

Rs. 13 while buying the bag

production segments, which

of Rs. 10 and the end user buys

from the manufacturer, his tax

will eventually make end

the product at 179.3+ 10+18.93

burden will be 15-13 = 2.

products cheaper. This will

Pre & Post GST Structures Let us simplify the way GST will operate. Suppose a manufacturer buys raw materials worth Rs. 100 inclusive of Rs. 10 tax as per 10

(10 per cent tax)= Rs. 208.23.

Takeaways from GST So, amid the discussions centering GST, the takeaway are that with GST tax burden will come down in the manufacturing and other

help the manufacturer attain Later, the retailer buys it at Rs.

In this whole process

150 and sells the product at Rs.

the tally of taxes goes to

160 with profit of Rs. 10. His

10+13+16.3+18.93=58.23.

tax burden as per GST will be 16-15= 1.

global competitiveness in price, higher exports volume, higher forex inflow. On the domestic front, though

per cent rate. Another Rs. 30

Now let us put this case in GST

is spent on labour charge and

system. The manufacturer

other miscellaneous cost. So,

buys raw materials at Rs.

the final manufactured product

100 including Rs. 10 tax. His

is worth Rs. 130. Now when

manufacturing cost is Rs.

the manufacturer sells the

30. So, the value of that

product to the wholesaler, the

product is Rs. 130. But since

While the final price of the

system will stop tax evasion,

wholesaler also has to pay 10

the manufacturer has already

product goes to Rs. 208.23

thereby checking corruption,

per cent tax, in this case Rs. 13

paid Rs. 10 tax while buying

under the current method, GST

improving tax compliance level

on the price of 130 which takes

raw materials, his tax burden

is able to cap the price

and pumping in more income

the buying amount to Rs. 143.

will come down to 13-10= 3.

at Rs. 160.

from tax for the Government.

So, the tally of tax under the GST system on the same product is 10+3+2+1=16 vis-Ă -vis 58.23 previously.

apparently it seems that the bulk of the tax burden is on the end user, actually the end buyer will find the product cheaper. Also, the vigilant

With GST tax burden will come down in the manufacturing and other production segments, which will eventually make end products cheaper

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August 2016


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MAIN FEATURE

India: GST Impact: Manufacturing Sector The implementation of GST will significantly improve the competitiveness and performance of Indiaâ&#x20AC;&#x2122;s manufacturing sector. However, prior to its roll out, it will be incumbent upon the Indian government to address certain stakeholder concerns, if it wants to foster long term growth in this sector

Samsuddha Majumder Samsuddha.Majumder@trilegal.com

Introduction The manufacturing sector in India is not only plagued with concerns ranging from decline in exports and infrastructure spending but also with the burden of complying with a complex indirect taxation system. Multiple indirect tax legislations have led to significant compliance and administrative costs, classification and valuation disputes and generally impaired the ease of doing business in this sector. The implementation of goods and services tax (GST) is therefore critical and necessary to give a boost to an already flagging sector. In this update, we analyse the key impact of the model goods and services tax law

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Himanshu Sinha Himanshu.Sinha@trilegal.com

Nameer Khan Nameer.Khan@trilegal.com

(Model GST Law) and the

incentives (economical land

likely issues relevant to the

lease terms, lower electricity

manufacturing sector. This

duty etc.). At present, States

is our second update in the

have the flexibility to offer such

series of updates regarding the

incentives. However, under

impact of GST on key sectors of

the GST regime, such flexibility

the Indian economy. Our first

given to the States is likely to be

update on the impact of GST in

curtailed to achieve the intended

the e-commerce sector can be

effect of uniformity. Further, the

accessed from here.

Model GST Law does not clarify

Impact Of GST on The Manufacturing Sector State incentives Companies have set up units with significant investment outlays based on incentives offered by States under their respective investment promotion policies. These incentives are usually in the form of tariff incentives (lower tax rates, refund /deferment of taxes etc.) and non-tariff

the fate of current incentives. Companies which have based their financial projections around these fiscal incentives may have to reassess their projections. The implementation of GST will also signal a move away from the producer State tax system to a consumption State tax system. Producer States will have a lower financial incentive to offer such concessions, as GST will only be credited to the State where the supplies

are consumed, as opposed to the present situation where the producer State is credited with central sales tax on inter-state sales. This would lead to a loss of revenue for the producer States and therefore such States may not be in a financial position to continue offering such incentives, even though there may be other compelling reasons such as generation of labour, improvement of infrastructure, market creation etc. However, it seems likely that future incentives may only be non-tariff based. Area based incentives Manufacturing units enjoy exemption of taxes based on their location in specified backward areas, capital investment etc. There is no clarity under the Model GST Law on the treatment of such area

August 2016


The implementation of goods and services tax (GST) is critical and necessary to give a boost to an already flagging sector.

based exemptions. Given

are not subject to VAT. The

and therefore further clarity is

Under the present indirect tax

this uncertainty, companies

Model GST Law stipulates that

required.

regime, the manufacturing sector

should make a representation

specific transactions without

to the Government for

consideration would also be

appropriate compensation for

treated as supplies. Accordingly,

the unutilized portion of such

free samples may be subject

incentives.

to GST, leading to increase in

Increased working capital

overall costs.

MRP valuation Currently, various pre-packaged products for retail consumption are subject to excise duty not on the ex-factory transaction

Discounts

value but on a specified

may be significant for the

The Model GST Law stipulates

retail price (MRP) printed on

manufacturing sector. Under

that post supply discounts are to

the package. The MRP based

the current regime, stock

be excluded from the transaction

value (which is usually between

transfers are not subject to

value, provided such discounts

tax. However, under the GST

30%-35% of the MRP) is in most

are known at or before the

regime, stock transfers are

cases, much higher than the

time of supply of goods and are

deemed to be supplies and are

linked to the invoices for such

ex-factory transaction value

subject to GST. Though GST

supply. Companies may need

paid at this stage would be

to analyse existing post supply

available as credit, realization

discounts/incentive schemes

of this GST would only occur

where the quantum of discount

when the final supply is

is not known at the supply stage.

concluded. This would likely

Example, secondary market

result in cash flow blockages

incentive schemes, volume

and therefore companies

based discounts etc.

Impact on working capital

would have to rethink their

percentage of the maximum

leading to a higher excise duty liability than would otherwise be the case. This increased excise duty itself, results in a higher MRP, ultimately leading to a higher cost burden for the consumers. Under the GST regime, GST is payable by the manufacturer at the transaction

is able to set-off most input taxes levied in the production value chain. However, Central taxes cannot be set-off against State taxes and vice versa. This often leads to a situation where manufacturers are unable to set off excess credit of central or state levies. Further, central sales tax paid on inter-state procurements is also not creditable and are costs for the company. Another issue faced currently is the cascading of taxes at the post manufacturing stage. Dealers, retailers etc. are subject to taxes on their input side which are not creditable (service tax on input services, excise duty on capital goods). This leads to an increase in the cost of goods, ultimately affecting the competitiveness of

Valuation of self-supplies

value, and is creditable for all

Supply under the GST Model

final consumer. Accordingly, the

Law includes self-supplies such

unnecessary tax burden of the

All of the above issues are

Free supplies

as stock transfers and branch

MRP regime will no longer be

addressed under the Model

transfers. However, the GST

relevant

GST Law, which permits tax

Under the present indirect tax

Model Law does not prescribe

regime free supply of goods

valuation rules for such supplies

supply chain management strategies to minimize this impact on their cash flows.

August 2016

subsequent resellers up to the

Reduction of cascading taxes

Indian manufactured goods vis-Ă vis imports.

set offs across the production value-chain, both for goods and

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services. This will result in a reduction of the cascading effect of taxes and bring down the overall cost of production of goods. Reduction of classification disputes Currently, due to varying rates of excise duty and VAT on different products, as well as several exemptions provided under excise and VAT legislations, classification disputes are a regular cause for litigation under both central excise and VAT, especially for the manufacturing sector. It is expected that the inception of GST which is based on the principles of a simplified rate structure and minimization of exemptions will significantly reduce disputes regarding classification of products. Supply chain restructuring based on economic factors Current supply and distribution models are structured to

optimize indirect tax impact

diesel, motor spirit, natural

arising at various levels of

gas and aviation turbine fuel),

value addition. Transition to

while the State governments

GST should hopefully result in

will continue to impose VAT

such decisions being taken to

on these petroleum products.

optimize business efficiency (as opposed to indirect tax efficiency). Example, currently

Currently, credit of excise duty paid on specified

warehousing choices are

petroleum products is

often based on arbitrage

available. However, exclusion

between VAT rates in different

of petroleum products from

States/ between applicable

GST will add to the cost of

VAT and CST rates. With the

manufacture as excise duty

advent of GST, it is hoped

on such products would not

that such warehousing and

be creditable under the GST

logistics decision would be

regime. Petroleum products

based on economic efficiency

such as high speed diesel, are

such as costs and locational

common fuels used in various

advantages vis-a-vis key

manufacturing processes,

customers. However, a key hindrance could be the proposal to levy a 1% origin tax on inter-state supplies. Exclusion of petroleum from GST

as also for transportation of inputs and final products. Therefore, industries that consume petroleum products as their main inputs (such as the fertilizer industry

The Central government will

which use natural gas as an

continue to impose excise duty

important input) will get

on five petroleum products

significantly impacted by this

(petroleum crude, high speed

exclusion.

Conclusion The manufacturing sector stands to benefit significantly with the introduction of GST. The overall reduction of cascading effect of taxes, especially on the postmanufacture stage of the supply chain should have a positive effect on the cost of manufactured products in the hands of consumers. However, concerns remain on specific issues such as the additional 1% origin tax, increased cash flow issues on account of GST payable on stock transfers, and increased costs owing to exclusion of petroleum fuels from the ambit of GST. The Government should look into these issues in more detail if its keen to promote its â&#x20AC;&#x2DC;Make in Indiaâ&#x20AC;&#x2122; initiative. The authors Samsuddha Majumder is a Tax Partner for Trilegal Corporation. Himanshu Sinha is a Tax Partner for Trilegal Corporation. Nameer Khan is the Senior Associate of Trilegal Corporation

The inception of GST which is based on the principles of a simplified rate structure and minimization of exemptions will significantly reduce disputes regarding classification of products.

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August 2016

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MAIN FEATURE

GST: Simplifying Tax Regime, Strengthening Business With the GST Law in force, companies are expected to achieve improved cost efficiency as the multi tax regime will give way to single tax regime. The companies, however, need to reshuffle their supply chain management and investment outlays to reap the maximum benefits of this new regime of indirect tax.

Rashmi Ranjan Mahapatra Rashmi.Mohapatra@kemppi.com

GST: Game Changer for the

to the consumer. Credits

and Entry tax, Purchase Tax,

and state governments,

Indian Economy

of input taxes paid at each

Luxury tax, and Taxes on

GST is expected to lead to

stage will be available in the

lottery, betting and gambling.

easier administration and

The Goods and Service Tax (GST) will be a comprehensive nationwide indirect tax on manufacture, sale and consumption of goods and services throughout India. The aim is to have one indirect tax for the whole nation, which will make India a unified common market.

addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

The introduction of GST would be a significant step in the reform of indirect taxation in India. Amalgamating several

enforcement. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods.

central and state taxes into

GST has been envisaged as

a single tax will mitigate

a more efficient tax system,

cascading or double taxation,

neutral in its application and

facilitating a common

distribution wise attractive.

GST will be levied and

At the central level, the

national market. This would

The advantages of GST are:

collected at each stage of

following taxes will be

be hugely beneficial for

sale or purchase of goods or

subsumed: Central Excise

consumers as the tax burden

services based on the input

Duty, Additional Excise Duty,

on inter-state logistics will

tax credit method and would

Service Tax, Countervailing

be cheaper. A common

make not just manufacturing

Duty, and Special Additional

tax would mean easy

but also the inter-state

Duty of Customs.

compliance and uniformity

transportation of goods more efficient.

24

subsequent stage of value

At the State level, the following taxes will be

GST is a single tax on the

subsumed: State Value Added

supply of goods and services,

Tax/Sales Tax, Entertainment

right from the manufacturer

Tax, Central Sales Tax, Octroi

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of tax rates and structures for industry and would thus contribute to ease of

• Wider tax base, necessary for lowering the tax rates and eliminating classification disputes • Elimination of multiplicity of taxes and their cascading effects

doing business by removing

• Rationalization of tax

cascading costs. For central

structure and simplification of

August 2016


Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage.

compliance procedures â&#x20AC;˘ Harmonization of Center and State tax administrations, which would reduce duplication and compliance costs â&#x20AC;˘ Automation of compliance procedures to reduce errors

is likely to be curtailed to

may be other compelling

and are subject to GST.

achieve the intended effect

reasons such as generation

Though GST paid at this stage

of uniformity. Further, the

of labour, improvement

would be available as credit,

Model GST Law does not

of infrastructure, market

realization of this GST would

clarify the fate of current

creation etc. However, it

only occur when the final

incentives. Companies which

seems likely that future

supply is concluded. This

have based their financial

incentives may only be non-

would likely result in cash

projections around these

tariff based.

flow blockages and therefore

fiscal incentives may have to

Manufacturing units enjoy

companies would have to

and increase efficiency

reassess their projections.

Impact of GST on Indian

The implementation of GST

on their location in specified

Manufacturing

will also signal a move away

backward areas, capital

from the producer State tax

investment etc. There is no

Companies have set up units

system to a consumption

clarity under the Model GST

Under the present indirect

with significant investment

State tax system. Producer

Law on the treatment of such

tax regime free supply of

outlays based on incentives

States will have a lower

area based exemptions. Given

goods are not subject to VAT.

offered by States under

financial incentive to offer

this uncertainty, companies

The Model GST Law stipulates

their respective investment

such concessions, as GST

should make a representation

that specific transactions

promotion policies. These

will only be credited to the

to the Government for

without consideration would

incentives are usually in

State where the supplies are

appropriate compensation

also be treated as supplies.

the form of tariff incentives

consumed, as opposed to the

for the unutilized portion of

Accordingly, free samples

(lower tax rates, refund /

present situation where the

such incentives.

may be subject to GST,

deferment of taxes etc.)

producer State is credited

and non-tariff incentives

with central sales tax on

(economical land lease

inter-state sales. This would

terms, lower electricity duty

lead to a loss of revenue

etc.). At present, States

for the producer States and

have the flexibility to offer

therefore such States may

such incentives. However,

not be in a financial position

under the GST regime, such

to continue offering such

flexibility given to the States

incentives, even though there

August 2016

exemption of taxes based

Impact on working capital may be significant for the

rethink their supply chain management strategies to minimize this impact on their cash flows.

leading to increase in overall cost.

manufacturing sector. Under

The Model GST Law stipulates

the current regime, stock

that post supply discounts

transfers are not subject

are to be excluded from the

to tax. However, under the

transaction value, provided

GST regime, stock transfers

such discounts are known

are deemed to be supplies

at or before the time of

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25


Amalgamating several central and state taxes into a single tax will mitigate cascading or double taxation, facilitating a common national market.

supply of goods and are linked to the invoices for such supply. Companies may need to analyse existing post supply discounts/ incentive schemes where the quantum of discount is not known at the supply stage. Example, secondary market incentive schemes, volume based discounts etc.

Currently, various prepackaged products for retail consumption are subject to excise duty not on the ex-factory transaction value but on a specified percentage of the maximum retail price (MRP) printed on the package. The MRP based value (which is usually between 30%-35% of the MRP) is in most cases,

much higher than the ex-factory

manufacturer at the transaction

transaction value leading to

value, and is creditable for all

a higher excise duty liability

subsequent resellers up to the

than would otherwise be the

final consumer. Accordingly, the

case. This increased excise

unnecessary tax burden of the

duty itself, results in a higher

MRP regime will no longer be

MRP, ultimately leading to

relevant.

a higher cost burden for the consumers. Under the GST regime, GST is payable by the

Under the present indirect tax regime, the manufacturing sector is able to set-off most

TAXES TO BE SUBSUMED UNDER GST

%

Luxury Tax

State cesses & surcharges

Tax on Lottery, Betting and gambling

Entry Tax not in lieu of octroi

VAT/Sales Tax

Central excise Duty

Entertainment Tax

Additional excise duty

Purchase tax

Central sales tax

STATE LEVEL TAXES

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Excise Duty

Service Tax

Additional customs duty

Surcharges

Special Additional duty of customers

Cesses

CENTRAL LEVEL TAXES

August 2016


input taxes levied in the

structure and minimization of

production value chain.

exemptions will significantly

However, Central taxes cannot

reduce disputes regarding

be set-off against State taxes

classification of products.

and vice versa. This often leads to a situation where manufacturers are unable to set off excess credit of central or state levies. Further, central sales tax paid on inter-state procurements is also not creditable and are costs for the company.

Current supply and distribution models are structured to optimize indirect tax impact arising at various levels of value addition. Transition to GST should hopefully result in such decisions being taken to optimize business efficiency (as opposed to indirect tax

Another issue faced currently

efficiency). For example,

is the cascading of taxes at

currently warehousing choices

the post manufacturing stage.

are often based on arbitrage

Dealers, retailers etc. are

between VAT rates in different

subject to taxes on their input

States/ between applicable

side which are not creditable

VAT and CST rates. With the advent of GST, it is hoped that such warehousing and logistics decision would be based on economic efficiency such as costs and location advantages vis-a-vis key customers. However, a key hindrance could be the proposal to levy a 1% origin tax on inter-state supplies.

(service tax on input services, excise duty on capital goods). This leads to an increase in the cost of goods, ultimately affecting the competitiveness of Indian manufactured goods vis-à-vis imports. All of the above issues are addressed under the Model GST Law, which permits tax set offs across the production value-chain, both for goods and services. This will result in a reduction of the cascading effect of taxes and bring down the overall cost of production of goods. Currently, due to varying rates of excise duty and VAT on different products, as well as several exemptions provided under excise and VAT legislations, classification disputes are a regular cause for litigation under both central excise and VAT, especially for the manufacturing sector. It is expected that the inception of GST which is based on the principles of a simplified rate

- one gauge, many applications

Kemppi India is a purely manufacturing entity and all the points under manufacturing impacts us. We will be waiting for more clarity on the bill in the days to come. The author Rashmi Ranjan Mohapatra, Managing Director, Kemppi India, has an illustrious portfolio to his name. He worked with Linde and ADOR WELDING, was consultant to the Government of Netherlands, External Affairs Ministry, is a Managing Committee member of IIW – Chennai and is currently in the panel of CII (CONFEDERATION OF INDIAN INDUSTRY) for Skill Development and Entrepreneurship.

Nothing compares to Equator™, Nothing compares like Equator™ The unique new Equator™ is a versatile alternative to traditional gauging, offering inspection of an unprecedented variety of manufactured parts. It has been developed and proven on the shop-floor with industry-leading gauging users in multiple industries and applications. Benefits which can be gained by using Equator™ include: • Reduced gauging costs • Robust shop floor measurement process • Reduced production bottlenecks

To see Equator in action visit www.renishaw.com/gaugingapps

Renishaw India G.K Arcade, 3rd Floor, #125/1-18, T. Mariappa Road, Jayanagar 1st Block, Bangalore 560 011 T +91 80 6623 6000 F +91 80 6623 6060 E india@renishaw.com

www.renishaw.com August 2016

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MAIN FEATURE

GST for Manufacturing: A Step towards ‘Ease of Doing Business’ in India

Manufacturing sector in India is all set to soar high with ‘Make in India’ initiative. GST can provide the right fillip to the Manufacturing sector by ushering ‘Ease of Doing Business’. Though a few overhauls may just be appropriate to avail the benefits, overall the new tax regime is likely to empower the manufacturers with global competitiveness.

Pratik Shah pratik.shah@skpgroup.com

India has traditionally been

a mere 16 per cent. In the

towards increasing the ‘Ease

competitiveness. GST was

an agricultural economy, but

backdrop of such ambitious

of Doing Business’ in India.

thus, introduced to seminally

post the 1991 liberalization,

goals, India could soon become

A step in this direction is the

revamp the whole indirect tax

the Indian economy has

the ‘Manufacturing Hub’ of the

implementation of Goods and

system with an idea of ‘One

world.

Services Tax (GST) in India.

Nation One Tax’, merging the

The Engineering Industry

Currently, India has a multi-

in India has been a major

layered and cumbersome

benefactor of the increased

indirect tax structure which

manufacturing synergy in India.

requires manufacturers to

The Engineering industry in

engage with both Central

India stands tall globally as its

and State governments to

exceptionally skilled work force

discharge their indirect tax

are able to deliver high quality

liabilities i.e. Excise, Octroi,

and not the unorganized

engineering products at strict

VAT/CST and Service Tax

trades which are equally

competitive prices. Nurturing

(if applicable). Further,

huge. With a manufacturing

the dream of becoming

unavailability of input tax credit

dream in mind, the ‘Make in

‘Manufacturing Hub’ of the

between Central and State

India’ campaign has set an

world, the Indian government

taxes leads to considerable

ambitious goal of increasing

has now realised that for

tax distortion and cascation.

the contribution of

Manufacturing to reach its

Such limitations in the current

manufacturing output to 25

true potential, India will have

indirect tax system hamper

In a usually cost competitive

per cent of Gross Domestic

to proportionately simplify

the cost effectiveness of

Indian market, cost control

Product (GDP) by 2025 ,

its business procedures and

Indian manufactured goods

plays a major role in

which currently contributes

promote schemes and policies

and reducing its global

determining the success of

been slowly shifting towards Manufacturing and Services. At present India ranks at sixth among the top ten manufacturing countries of the world . However, these studies only account for formal organized trades in India

28

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whole of India into one single market, allowing seamless flow of credit between and within States. Over the course of this article we will understand the impact GST on manufacturing industry and how this reform in Indian indirect taxes will prove to be the game changer for manufacturing industry in India. Reduced Cost Burden

August 2016


GST will play an instrumental role in reducing the cost of production, as tax paid on interstate transaction (IGST) will be available as credit against any output liability (CGST/SGST or IGST).

the organization. Under the

Engineering units usually have

A probable change in

the GST regime, the number

current indirect tax regime,

a single master manufacturing

Warehouse structure will

of Return compliance will

manufacturing industries do

unit in one State and operate

automatically initiate a need for

certainly increase, but the

not get the input tax credit

in other States through

supply chain optimization. The

manufacturers will avail the

for Central taxes against

warehouses / depots. These

revised warehouse structure

benefit that they will engage

State taxes and vice versa,

warehouses apart from

may propel the organization

with only GST authority

as both the authorities levy

customer convenience

to sketch a whole new supply

for all their compliance i.e.

tax independently of each

and profiling reasons also

chain or a distribution channel.

Returns, Refunds, Audit

other, thus leading to tax

double up as a Branch for the

A well thought of strategy

and Assessments. Also,

cascation. Accordingly,

organization, through which

could completely eliminate

the GST Network (GSTN),

Central Sales Tax (CST) levied

they can avail the benefit of

warehousing as a layer by

(which will digitally regulate

on interstate transactions

branch transfer without Tax

becomes a direct cost for the

increasing the dependence

all the above mentioned

(No CST - through Form F).

buyers. On the contrary, GST

on robust logistics matrix to

processes of compliance) shall

Under the GST regime India

maintain supply efficiency.

tremendously increase the

will subsume majority of the indirect taxes at both Central and State level, allowing seamless flow of credit from one State to another. Thus, GST will play an instrumental role in reducing the cost of production, as tax paid on interstate transaction (IGST) will be available as credit against any output liability (CGST/SGST or IGST). Warehouse Re-engineering and Supply Chain Restructuring

August 2016

will become ‘one country, one single market’ thus leading to almost no disparity between interstate and intrastate transactions. Organizations who maintain warehouses in multiple States for the purpose of saving CST & Entry Tax cost on goods may have to reconsider running multiple warehouses across States, as the need for warehouses across States may not be that relevant under the GST regime purely from tax perspective.

Simplified Compliance Requirement Currently, manufacturers in India have to engage with multiple authorities on daily basis i.e Excise, State VAT, Octroi, Service Tax etc. As a result, manufacturers have to compulsorily conduct a whirlwind of

transparency in the system, thus reducing the manual bureaucratic engagement, in-turn increasing the ‘Ease of Doing Business in India’. Given the transparency in GST system, the onus of timely processing of assessments and orders will be on the officers. Area Based Exemptions

compliance activities such

The Model GST Law does not

as Returns, Refunds, Audit

provide for continuation of

and Assessments with

any Area Based Exemptions

multiple authorities. Under

currently active under Excise,

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29


State VAT, etc. Given that Area

manufacturers will have to

supply to branches to ensure

these bottlenecks to reduce

Based Exemption have a dual

incur tax incidence on their

adequate cash flow availability

their production costs will

socio-economic benefit, it is

inputs and eventually claim

in each stock turnover period.

eventually reap greater

likely that these exemptions

refund for the same with

may get grandfathered under

the government. Currently

GST, but with a different

manufacturers get upfront

structure altogether. It

exemptions for exports. Such

is probable that these

a change in tax mechanism will

Exemptions may be continued

severely affect the working

through direct refund route

capital, as export companies

as against upfront exemption

will now have to additionally

from taxes at present.

invest about 20% of their

Given that the fate of these

working capital for tax purpose

exemptions have not been

on a roll over basis.

sealed as yet under the GST regime, the industry bodies have a great opportunity at hand to represent their industry with the Government

Increased Working Capital Requirement Due to Stock Transfer

Conclusion If the business community is bifurcated into three major buckets i.e. Manufacturers, Traders and Service Providers, the manufacturers stand to gain the highest under GST as compared to the other two. The catch is that these benefits will be available for the whole industry at large, thus the market will soon go into correction and competitors will realign their

GST may have a negative

margins and profits to this

working capital effect as stock

obvious direct savings of tax

transfer between branches will

incidence. However, the cost

now be charged at every point

savings through supply chain

of supply for which credit will

optimization, working capital

be available to the succeeding

planning and warehouse

The Model GST Law only

branch at the time of sale to

restructuring will be the niche

provides for a refund route

end consumer. Organizations

bottleneck for differentiating

of availing tax benefits for

will now have to increase their

the smarter ones among

Exports. Thus, it is likely that

working capitals in tune with

others. Companies who make

under GST regime, Export

the incremental tax rate on

an active effort to foresee

and lobby to get an exemption for the whole industry at large. No Upfront Exemptions on Exports

benefits under the GST regime by having a strategic cost advantage over their competitors. It is important that manufacturers view GST as a holistic business change and not a mere tax change. Anticipating an April 2017 GST implementation date, the industry is left with just seven months to conduct a whole set of implementation activities which involves conducting GST impact studies, IT implementation, GST transitional compliance, GST representations, etc. If international experience were to be leveraged, an average GST transition takes almost 8-9 months to complete. Thus for those who are yet to board the GST train, do so now; or expect a bumpy finish at the very end.

Indian government has now realised that for Manufacturing to reach its true potential, India will have to proportionately simplify its business procedures and promote schemes and policies towards increasing the â&#x20AC;&#x2DC;Ease of Doing Businessâ&#x20AC;&#x2122; in India.

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August 2016


Witness a true international event with state-of-the-art infrastructure

Venue: The Exhibition Center, Helipad Ground, Gandhinagar, Gujarat, INDIA.

August 2016

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31


MAIN FEATURE

Impact of IoT on Hydraulics & Pneumatics

Hydraulics and Pneumatics are part of every industrial and mobile application today. Using compressed fluid power and air pressure respectively in their individual mechanisms, they can perform task ranging from basic automation to heavy load applications. Adding Inernet of Things (IoT) to this branch of engineering has just enhanced efficiency and life of Hydraulics and Pneumatics equipment.

Rajesh Angadi rajesh_angadi@hotmail.com

Hydraulics is a topic in applied science and engineering dealing with the mechanical properties of liquids or fluids. At a very basic level, hydraulics is the liquid version of pneumatics. Fluid mechanics provides the theoretical foundation for hydraulics, which focuses on the engineering uses of fluid properties. In fluid power, hydraulics are used for the generation, control, and transmission of power by the use of pressurized liquids. Hydraulic topics range through some part of science and most of engineering modules, and cover concepts such as pipe flow, dam design, fluidics and fluid control circuitry, pumps, turbines, hydropower, computational fluid dynamics, flow measurement, river channel behavior and erosion.

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Pneumatics is a branch of engineering that makes use of gas or pressurized air. Pneumatic systems used extensively in industry are commonly powered by compressed air or compressed inert gases. A centrally located and electrically powered compressor powers cylinders, air motors, and other pneumatic devices. A pneumatic system controlled through manual or automatic solenoid valves is selected when it provides a lower cost, more flexible, or safer alternative to electric motors and actuators. Pneumatic systems in fixed installations, such as factories, use compressed air because a sustainable supply can be made by compressing atmospheric air. The air usually has moisture removed, and a small quantity of oil is added at the compressor to

prevent corrosion and lubricate mechanical components. Difference between Hydraulics and PneumaticsHydraulic will apply for high load application while pneumatic apply for low load application. Pneumatic works faster than hydraulic. Hydraulic needs oil whereas pneumatic needs air. Hydraulic is used for very precise application than pneumatic like CNC. Hydraulics is moving and operating equipment with oil under pressure, pneumatics is air under pressure. Hydraulics relates to fluids and Pneumatics to gas. Any system working on fluids is called hydraulic and gas (air) pneumatics. The ram and piston (shinning on a forklift or caterpillar bulldozer is working on hydraulics. The oil

is pressurized by a pump (gear pump or rotary pump) and then let to pull or push or a micron finished rod inside a cylinder leak-proof. Advantages of pneumatics Simplicity of design and controlâ&#x20AC;&#x201D; Machines are easily designed using standard cylinders and other components, and operate via simple on-off control. Reliabilityâ&#x20AC;&#x201D;Pneumatic systems generally have long operating lives and require little maintenance. Because gas is compressible, equipment is less subject to shock damage. Gas absorbs excessive force, whereas fluid in hydraulics directly transfers force. Compressed gas can be stored, so machines still run for a while if electrical power is lost.

August 2016


The IoT is an important trend across many industries, including hydraulics, helping end users, manufacturers and engineers optimize component design and use.

Safety—there is a very low chance of fire compared to hydraulic oil. Newer machines are usually overload safe. Advantages of hydraulics Liquid does not absorb any of the supplied energy. Capable of moving much higher loads and providing much higher forces due to the incompressibility. The hydraulic working fluid is basically incompressible, leading to a minimum of spring action. When hydraulic fluid flow is stopped, the slightest motion of the load releases the pressure on the load; there is no need to “bleed off” pressurized air to release the pressure on the load. Highly responsive compared to pneumatics. Supply more power than pneumatics. One of the other major differences is in the area of cost. Pneumatic systems tend to be substantially cheaper than hydraulic systems are. It is easy to see just how many differences

August 2016

these different systems have. Even though there may be some overlap in the types of work that they do, as well as the things they can accomplish, each has different specialties. One is generally better suited to certain types of tasks than the other one will be. Today, we will find hydraulics in use with many different types of machinery and systems. They are used in auto assembly lines, large machines and construction equipment, elevators, hoists, machine tools, flight simulators, amusement park rides and much more. Some theatrical stages even utilize hydraulics to raise or lower parts of the stage. Hydraulics is also a part of motor vehicles. Find it in the power steering, brake lines, and automatic transmissions. Hydraulic systems are a part of nearly every industry in some capacity or another today. With Industry 4.0, smart factories consist of three branches: • The Internet of Services, aka the cloud: It is a deliverer of services. It shares resources such as applications, content,

databases, records, storage, computing power, and networks among all those who are connected. • Cyber-physical systems: These represent the connectivity between digital and physical. Embedded systems, e.g. smartphones with all of their sensors and connectivity, fall under this category. • The Internet of Things (IoT): Here, connected devices use the Internet without human influence. This is potentially the most important and active component of the branches. Imagine a CNC machining center, when predicting a possible failure, autonomously corrects itself and then sends alerts to those who need to know. Industry 4.0 has taken data acquisition and communication to heights that previously were thought to be impossible. Everyone from plant managers to maintenance workers have direct access to real-time data that only serves to change and enhance industry methodologies. The digital manufacturing revolution is in the process of disrupting every aspect of the

industry. Under any of its many names — the Industrial Internet of Things, smart manufacturing, big data, etc. — this revolution has already touched just about every step in the manufacturing process. It has made visible all of the manufacturing blind spots, revealing everything from machine cycle times to product quality across the entire global supply chain. The result of this movement has already been profound. Tapping into this data has allowed savvy manufacturers to boost productivity, virtually eliminate unplanned downtime, and take firm, real-time control over their manufacturing processes. Hydraulics on fluid power and the IoT Currently many products participating in the Internet of Things which means Electrical Sector and Hydraulics Group engineers are actively looking at integrating the IoT across more products. The IoT is an important trend across many industries, including hydraulics, helping end users, manufacturers and engineers optimize component

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design and use. By capturing data that exists within components and systems and making it available.For example - Unexpected hose failure can wreak havoc on our customers’ operations. Consisting of a hose diagnostic unit (HDU), sensor, hose and web portal, LifeSense monitoring is available in a wireless configuration that electronically monitors the length of the hose assembly, keeping track of data in real time and interpreting the health of each assembly. In addition to transmitting operational data to a secure portal, the system will warn a user of impending hose failure immediately, providing time to repair or replace the hose before it fails.By connecting a relatively basic hydraulic component—the hose—to the IoT, which helped customers realize up to 50% more hose life, cutting back on wasteful preventative maintenance practices and keeping assets up and running. Components that are naturally more sensing, such as control elements, may be best suited to IoT connection. However,

components that have not historically seen controls— such as hoses—can now be tied in and provide significant value. IoT enabling also looks different in industrial versus mobile hydraulic applications. In industrial equipment, the end goal is typically automation, and IoT becomes most important for simplifying configuration. In mobile applications, enabling IoT helps continuously look for component efficiencies as well as actionable items to make machine operators more productive.The IoT is a new label on a continuum of change that has been happening over the past decade. The data mining capabilities of the IoT are helping fleet managers remotely manage equipment and spot problems before they occur.The IoT is also growing rapidly on the industrial side. The continuum of data becoming information and information becoming knowledge can help end users; knowing the energy consumption of an industrial machine, for example, can help customers make design changes to maximize efficiency. Because of IoT, the amount

of data available is growing exponentially. Gathering and analyzing that data is changing how companies deliver information. As software for machine control continues to develop, engineers are actively researching how future iterations of these products may be delivered through the cloud. With data available in the cloud, information can be better tracked and used, giving customers access to needed information, as well as providing companies insight to how customers are using products, Allowing for innovative solutions designed based on real customer use. Machine designers, engineers, manufacturers and end users know more than ever about how machines are operating. Data for the sake of data can be overwhelming, though, and customers need to know how to use that data to realize value from integrating the IoT. There are risks when adding complexity and cost to components, but the key is adding it where it will be

valuable without distracting from what is important. Fluid power is typically a slowly changing market, so the changes the IoT makes may not feel sudden and dramatic, but rather steady and continuous. As adoption of intelligence continues to grow, we will begin to see vastly different machine architectures, as wireless communications and distributed intelligence become the norm. Through steady changes, hydraulics will continue to play a prevalent role in providing high power density to industrial and mobile applications. Intelligent pneumatics with IoT - Intelligent valve electronics ensure reliable operation with minimum effort - Increased system availability and safety reduce operating costs significantly - The high degree of component networking allows for secure, locationindependent access to systemrelevant data - Consistent analysis and diagnosis simplify preventive

The IoT is an important trend across many industries, including hydraulics, helping end users, manufacturers and engineers optimize component design and use.

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August 2016


maintenance, increasing system availability The main objective of IoT is linking information technology and production technology to realize smart factories and thereby increase efficiency and added value. Organization like AVENTICS has been working extensively on key topics of trendsetting pneumatics: self-optimization, self-configuration, and selfdiagnosis distinguish the strategies that have long been a component of our current valve technology. A simple idea is at the heart of the concept: networked sensors working decentrally form an information system that increases system availability based on automated analysis and diagnosis. At the same time, preventive maintenance processes are integrated, and the results are impressive: Operating costs and effort are reduced significantly. The IoT provides the connection, the cloud provides online storage and convenient applications, and big data provides analysis, management and maintenance of information, which, when combined, can overwhelm the data users and decision makers. Fortunately computers and specifically machine-learning applications, although in their early stages, can help.Machine learning can be applied to just about any control system that is smart enough to actually alter how it controls a machine in response to changing conditions, but there is much more to it than that. The three leading technologies of today are all feeding this field

August 2016

of artificial intelligence (AI). How will these technologies feed machine learning and allow machine design, control systems, production, and maintenance and business practices to improve. It is a fully integrated system of process software solutions said to turn plant data into actionable information enabling smart operations. The suite uses data analytics to allow users to capture data, visualize trends, collaborate with other users, predict and prevent equipment failures, and act to make informed business decisions. Big Data software collects and stores all types of data for retrieval and analysis, predicts and detects events based on underlying patterns and correlations. As of today are all feeding this field of artificial intelligence (AI). How will these technologies feed machine learning and allow machine design, control systems, production, and maintenance and business practices to improve for effective and efficient business decision making. The author Rajesh Angadi completed his BE, MBA, PMP and is Hadoop Certified. With 22 years of Information Technology experience he worked on projects for Unisys, Intel, Satyam, Microsoft, Ford, Hartford, Compaq, and Princeton. He is always fascinated by the latest technology coming up in the IT sector and striving to keep pace with it. Interests in Information Technologies research areas like Hadoop Ecosystem, Predictive Analysis, Telematics, Clinical research with Analysis.

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INDUSTRY FOCUS

Hose Assembly Cleanliness in Mobile Hydraulics

It is the opinion of many hydraulic system experts that “contamination” is responsible for most (70+ %) system failures. It can plug filters blocking fluid flow causing over-heating or stopping of equipment work. It can cause abrasion wear of moving parts. Some contaminants maychemically attack system components, including hoses and couplings. CLEANLINESS therefore becomes critical.

R. Rajasekhar customer.care@gates.com

Contaminates can be any solid, liquid, or gas that is not a desired component in the hydraulic fluid. There are many sources of hydraulic system contamination including “dirty” hose assemblies. Hose assemblies are the life line

of the various mobile equipment like Excavators and Backhoe Loaders and “clean” hose assemblies are critical to the performance of the hydraulic system in these machines. How Do Contaminants Adversely Affect Hydraulic Systems?

Contaminants can adversely affect a hydraulic system by preventing the proper function of the system components. A gas contaminant such as air can cause pump cavitation. This cavitation can cause a loss of power, overheating, and noise issues. Water contamination can

cause oxidation in the hydraulic oil that leads corrosion and sludge build-up. Solid particulate contamination, such as dirt, can cause a wide range of problems in a hydraulic system. This can include component wear, heat buildup and oil flow stoppage. Contaminant particle size can

Over 70% of all hydraulic system failures are the result of contaminated fluid

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August 2016


cause system damage relative to the size of the orifice or clearance of system components such as between a piston and cylinder wall, or filter porosity. The usual system clearances available in hydraulic systems show the importance of maintaining hydraulic cleanliness Visualize these clearances consider the size of some common objects: •Yeast Cell- 1 Micron •Red Blood Cell- 6 Microns • White Blood Cell- 24 Microns • Human Hair- 70 Microns • Grain of Table Salt - 100 Microns

August 2016

How Do Contaminants Get Into Hydraulic Systems? There are many ways contaminants can get into hydraulic systems. During assembly, operation, maintenance and repairs. During assembly the contaminants can come from a number of sources including hydraulic reservoir, valves, pumps, hoses, tubes and hydraulic oil. System components need to be cleaned before installation into a hydraulic system. Components can have material left over from the manufacturing process that can contaminate the hydraulic oil. For components such as hoses

assemblies, the contamination gains access to the inside of the hose while cutting it to length with a saw or skiving the hose before assembly. These processes generate clouds of dust particles that can flow into the open ends of the hose. Once cleaned the components need have any opening capped or plugged to prevent contamination during storage. New oil should be filtered before adding it in to a hydraulic system. New hydraulic oil cleanliness can vary from container to container, so it is best to use a filter during the fill process to prevent contamination. Minimizing Contamination And

Its Harmful Effects To minimize contamination and reduce the harmful effects it can have on a system, there are some steps to follow. Have an understanding of your hydraulic system and cleanliness requirements. By understanding the cleanliness requirements of the system you can set a target level to maximize system life. To select a target cleanliness level, review the system components for the most sensitive to contamination. Most hydraulic component manufactures have guidelines to flow when it comes to hydraulic oil cleanliness. This may even affect the warranty coverage from the manufacturer.

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SYSTEM COMPONENT

TYPICAL CLEARANCE (Microns)

Gear Pump

Gear to Side Plate Gear Tip to Case

0.5 to 5 0.5 to 5

Vane Pump

Tip of Vane Sides of Vane

0.5 to 1 5 to 13

Piston Pump

Piston to Bore Valve Plate to Cylinder

5 to 40 0.5 to 5

Servo-Valve

Orifice Flapper Wall Spool-Sleeve

130 to 450 18 to 63 1 to 4

Control Valve

Orifice Spool-Sleeve Disc Type Poppet Type

130 to 10,000 1 to 23 0.5 to 1 13 to 40

Actuator Hydrostatic Bearing Anti-friction Bearings Side Bearing

Once the target is selected, develop a good maintenance program that includes hydraulic oil testing. The testing will provide you with information that can tell you the health of your system. If testing shows a foreign substance in the oil or a high particle count, then you know it is time for system repairs. Confirmation Cleanliness Levels By Testing Despite efforts to totally remove

all of the contaminant in a hydraulic hose system, some contamination remains even after the most robust cleaning or flushing techniques are applied. Contamination can be quantified to better understand the resulting cleanliness level of the hydraulic system. The customer may require a specified cleanliness level.

methods to measure the contamination level within a component, circuit, or system.

The International Standards Organization (ISO) has established three principal

Usually a combination of the above testing methods is required to maintain the target

• ISO 4405 (Gravimetric Measurement) • ISO 4406 (Particle Size Distribution) • ISO 4407 (Maximum Particle Size Analysis

50 to 250 1 to 25 1.5 to 10 1.5 to 10

cleanliness levels The author R Rajasekhar is General Manager Marketing & Training in Gates India Pvt Ltd. For more details reach Gates India Pvt ltd at www.gates.com/ india or follow on LinkedIn: company/gates-india to help eliminate expensive downtime and prevent dangerous, environmentally devastating and expensive accidents.

The fine particles that cause abrasive wear are usually not visible to the eye. The size of these particles is about 40 microns. Their relative size as compared to a human hair is shown below. Oil containing particles of this size can actually look clean while having enough abrasive particles to cause pump failure

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August 2016

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39


MAIN FEATURE

Borewell Rig: Hydro-Pneumatic Solution for Deep Earth Drilling Borewell Rig is a fine example of the immense potential of Hydraulics and Pneumatic Engineering. Used for various domestic and industrial applications, Borewell Rig is particularly a saviour in barren areas where it fetches water from thousands feet under the earth surface for agricultural and domestic water needs. Technological developments in this Hydro-Pneumatic machine are making the drilling process more energy efficient, user friendly and noise-free in future.

Kartik Joshi kartik@pramani.com

A glass full of water on your table is a perfect example of a by-product of Hydro Pneumatic System, Particularly if its source lies beneath hundreds of feet from ground level. Water, which is the essence of life, is manifested by water well drilling carried out by a giant Hydro

Pneumatic system that we often see on roads- A Borewell Rig! Anyone who has sighted a Borewell Rig mounted on a truck or in operation will be in awe of the machine if he is made aware of the seamless combination of Hydraulic (Oil) & Pneumatic

(Air) technology that pierces the depths of earth and makes it possible to fetch it from thousands of feet below the ground. My article is a tribute to such machine that has created possibilities for life, particularly drinking water and agriculture. Barren lands which are deprived

of river and rain have a saviour in the form of this wonderful machine. This machine on wheels has two main components, ascrew compressor which is the pneumatic power source and truck mounted Rig structure

Fabricated structure thathouses Hydraulic Pumps Cylinders, Jacks, Valves and Motors A screw compressor that is the source of pneumatic power (Air) mounted on truck

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A Borewell rig is the best example of collaboration of all form of power sources (Mechanical, Electrical, Hydraulic, Pneumatic) in Mechanical Engineering- A diesel engine that powers Hydraulic System, Screw Compressor and

Dynamo!! With advances in technology, the machine is evolving in terms of capacity, utility and features. Screw compressors with improving CFM & PSI capacities are making it possible to drill up to large depths in pursuit of water. Sensor mounted Rigs are saving manpower cost and automating the process. Variants in mounting wiz Truck Mounted/Track Mounted or Tractor Mounted rigs are used for wide applications for domestic and industrial use. The industry has a huge potential and contributes vastly in terms of revenue and job creation for the society. Similar to Automobile Industry, It also creates an ecosystem for ancillary industries that cater to requirements of Bits,

®

Hammers, Hydraulic Hose & other spares. Through exports to Africa, Middle East and other Asian countries, it contributes towards forex revenue of the country and takes ‘Make in India’ concept to a global level.

and high temperature hoses that support a rigid and robust system. The future might witness improved versions of this kind of Hydro-Pnumatic machines which are single person operated (Advancements in Sensor system), Dustless drilling (Attachment or provision to collect dust which is currently let off in open air) and most importantly reduced noise levels that is a major problem when drilling happens in the neighbourhood !

Cherlapalli Industrial Area situated in Hyderabad city of Telangana State is a Hub for Rig Manufacturing. Companies such as KGR Rigs, Beaver Tracks, KLR, Dynatech Industries are at the forefront of technological advancement. Compressor manufacturers such as Atlas Copco, ELGI, and IR are competing to provide high performance compressors. Market leader in Hoses and most trusted brand Gates enables Hydraulic and Pneumatic transfer of energy possible through high pressure

The auhor Kartik Joshi is the CEO of Pramani Sales & Pramani Hydrolines. Pramani is a Hyderabad based company offering Hydraulic equipment and solutions to a wide industry segments.

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comprising of Hydraulic powered cylinders, pumps and motor which form the hydraulic power source. The principle of operation is driving mammoth drill rods into the earth’s core by thrusting them into the ground with hydraulic force and enabling penetration through high pressure compressed air that powers Hammer and Drill Bit that lead the drill rod into the ground. Rotating Drill Bit –Hammer cut through layers of soil and rocks converting them into dust which is blown up to the surface.

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ON FACE

Pioneer in Showcasing Prowess of Indian Manufacturing!

Veena Parikh Managing Director, VERTEX Hydraulics Pvt. Ltd.

It provides import substation to its customers. It offers products which are “Engineered to Perfection”. ‘Vertex’ has been the unparalleled leader in forced feed lubrication systems for over two decades. ‘Make in India’ is a new programme to revolutionize manufacturing in the country. In an interview with MART, Mrs. Veena Parikh, Managing Director, VERTEX Hydraulics Pvt. Ltd. highlights how her company has actually been maintaining the spirit of ‘Make in India’ for long.

VERTEX has been a name to reckon with in the field of Forced Feed Lubricators for the last two decade. How has been the journey so far? Ans: Force Feed Lubricators were introduced in India by “Vertex”. Till then they were being imported by compressor manufacturers. We started our lubrication manufacturing with Ingersoll Rand as they were the leading compressor manufacturers in India, and they were known worldwide for their noiseless compressors. As we made lubricators for them, the other firms became interested in developing their models as well. At first, we had KG Khosla buy lubricators from us, and soon the government sector also followed suit, firms like Bharat Pumps and Compressors Ltd., ONGC, Oil India etc. got in touch with us to develop their models. As all the firms had

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different configurations, we consequently developed various different models catering to their compressors and pumps. Since that time, we have been OEM suppliers to all the Indian compressor manufacturers. How was VERTEX able to provide import substitution in its field? What advantages did it offer? Ans: Earlier there were only imported lubrication systems available. Many companies tried to manufacture them but were unable to provide same performance and quality. In 1981, when “Vertex” introduced its lubrication systems, we were able to prove that India can offer equivalent quality and performance at a competitive price. “Vertex” soon became a landmark in quality. The custom regulations on imports back then set the duty at 200%

which was an issue for the importers. “Vertex” lubrication systems came as a blessing for compressor manufacturers. Moreover, service and part replacement availability in India itself saved a lot of time for them as well. What kind of market share do you enjoy in India? What kind of customer base VERTEX has offshore? Ans: “Vertex” currently holds a 45% market share as an OEM supplier to Compressor manufacturing firms; however, 65% of lubrication systems are still being imported as many projects companies are bound to provide a certain imported brand of lubrication system. Our complete production capacity is currently being utilized by Indian compressor companies, since they are exporters, we supply spares worldwide.

We are currently headed to enhance our production facilities, so within a short period we will be capturing more market share, and imports will reduce. Our target is to capture 100% of the domestic market and then head towards export. We believe that if quality lubrication systems are manufactured in India, they should be utilized here first and exported later. Can you throw light on the entire product basket? What are the segments VERTEX caters to? Ans: Force feed lubrication systems are basically divided into two parts: 1) Pumping Element 2) Drive unit Our regular products are available in different working pressures like: a) LUB 1800 - 25-32 Bar b) LUB 1100 – 85 Bar

August 2016


c) LUB 2100 – 210 Bar d) LUB 3100 – 410 Bar The pumping elements can be adjusted to provide delivery from 0 to 0.28 cc/stroke/element. The drops are visible in the elements to provide visual confirmation of the volume set on the element. Drive units are available in different mountings and gear ratios. a) Horizontal Drive (the drive is on any one side of the lubricator ) Pumping element set up for them is 3, 6, 9, 12. Gear ratios are: 1:60, 1:77, 1:120 There are compatible with Ingersoll Rand or Bharat Pumps and Compressors Ltd. Compressors or pumps. b) Vertical Drive (Drive is on bottom of the lubricator) Pumping element set up for them is 3, 6, 9, 12. Gear ratio is 2:22 These are compatible with KG Khosla and Kirloskar Compressors and Pumps. Extra Accessories• Lub Line Alert • Low level switch • Timer switch • Benjo Connection • Hand priming arrangement • Ratchet arrangement • Motorized lubricator • Non return Valve • In Line Valve We also provide Rotary lubricators for vacuum pumps. Rotary lubricators are available in 4 to 12 pumping elements and working pressure ranging from 4 to 25 Bar. Valves for Compressors that we provide are• Non return Valve

August 2016

• Back Pressure Valve • Gauge Valve • Right Angle Valve • Shockless Valve • Special purpose customized valves for injection molding machines Could you highlight your R&D initiative for product and technology development? In this regard could you also mention some of your recent advancements in Lubrication engineering? Ans: Over the years we have kept on adding new products to our basket. It has taken a long time, but after the successful production of lubricators we developed different types of valves for compressors. As in gas compressors field nothing is standard, every compressor is customized, our lubrication systems are also customized accordingly. This is why we have a large amount of lubrication system designs. What are the new products VERTEX is planning to roll out in the near future? Ans: We are currently in the process of developing new lubricator that is used in CNG station compressors. It will be rolled out shortly. What would you reckon as the USPs of VERTEX products and services that keep the company ahead of its competitors? Ans: We are OEM suppliers to Indian compressor firms, hence we provide replacement lubrication boxes as well as pumping elements. These replacements are made to retrofit leading lubrication brands of the world likeLubriquip, Lincoln, Graco, Manzel, Premier, Coulthard. This gives us a distinct advantage. Our OEM’s include: Ingersoll Rand, Dresser Rand, K.G. Khosla, Kirloskar Pneumatic, Bharat Pumps and Compressore Ltd. Etc.

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Horizontal Drive Force Feed Lubrication System

Could you mention the standardization parts VERTEX maintains in its engineering process?

VMC machines. Our design is done on Solid Edge 3D, and the manufacturing is done completely in house.

hub of pharma machinery, we are looking to penetrate the hydraulic market for them.

Ans: Our models are standard and we keep a complete record as per the serial number given on the drive unit. Even if the requirement of spares arises after 10 years, we can provide the same part replacement and our pumping elements can be fit on to any lubrication system of International brands. We are an ISO 9000:2008 company and we manufacture our parts on the CNC and

How do you see the market of hydraulics and force feed lubricator in India vis-à-vis globally?

How do you foresee the growth of lubricators market in India in the short and long term? Where do you want to see VERTEX during that phase?

Ans: We are pioneers in hydraulic systems for pharmaceutical roll compacting machines, and OEM’s for many brands like Chamunda Pharma, Kevin Process technology, Cemach Pharma based in Ahmedabad. As Gujarat is a

Ans: We have high hopes from Indian Compressor manufacturers as well as ‘Make in India’. The ‘Make in India’ initiative has made people rethink their belief in imported products and

they are ready to try quality Indian products. Once they try it, we don’t believe they’ll switch back to the imports after all, our products are “Engineered to Perfection.” We are manufacturing a product that has a good future in India itself as we are the only manufacturer of force feed lubrication. Hence the future is looking bright for us. We are also looking forward to getting a collaboration to penetrate the global market with our brand “Vertex”.

Hydraulic cylinders with Clevis mounting

Front flange mounted heavy duty Hydraulic &#13;cylinder

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August 2016

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TALENT MANAGEMENT

Silence is Golden

Silence for the mind is just as important as proper nutrition for the body. Strong leadership directed either towards your own life or that of others, demands not just speed and action but also the courage to slow down and be still.

Pavan Sriram pavan@ittige.com

“Follow effective action with quiet reflection. From the quiet reflection will come even more effective action.” - Peter Drucker One of the greatest challenges in today’s times is to find the courage to make space for yourself. You can’t always get away from noise or disconnect from smart technology, but you CAN increase your silent time.

In his book In Pursuit of Silence: Listening for Meaning in a World of Noise, George Prochnik says that we shouldn’t think of the noise surrounding us as only a pollution issue. Rather, he says, we should think of it also as a dietary issue: “Our aural diet is miserable. It’s full of over-rich, non-nutritious sounds served in inflated portions - and we don’t consume nearly enough silence. A poor diet kills; but it

kills as much because of what it does not contain as from what it includes.”

conversation. And, it is the inexperienced leader who feels the discomfort in such situations.

Tuning out the noisy world helps managers and leaders develop the ability to reflect and grow. Great leaders know how to use this to get the best out of their teams. The successful one is intuitively aware of the power of silence and is very comfortable when this happens during the

Are you comfortable with silence in a conversation? Are there situations where silence helped in your own journey of selfdiscovery? Everyday leadership begins with the silence inside of us; it is the platform of our own self-knowledge. Here are few interesting ways you can

Going off the grid, unplugging, disconnecting or shutting down - taking conscious breaks from technology is essential to our productivity and our overall mental health.

You can’t always get away from noise or disconnect from smart technology, but you CAN increase your silent time.

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practice it: Un-Plug: Call it what you will: Going off the grid, unplugging, disconnecting, shutting down - taking conscious breaks from technology is essential to our productivity and our overall mental health.And that’s why making sure your employees are aware of, understand the restorative powers of, and regularly partake in a digital detox is a responsibility that, as leaders, lies squarely on our shoulders. Step Back: When there is a particularly stressful meeting or conversation you are about to go into either with a client or a team-member, try to silence your thoughts for a couple of minutes

August 2016

to think, reflect, step away from the pressures of the situation which is not like the environment of going in there to attack the task at hand. The leader’s skill lies in stepping back differentiates the process of the discussion. Listen More: In case you’re thinking listening-centric leadership is a fleeting fad, it has actually been around for thousands of years! In fact, Lau Tzu, the ancient Chinese philosopher wrote: A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: we did it ourselves. So the next time you are heading up a meeting and you need to hear some ideas, thoughts, etc. make sure

you are giving your team and yourself every opportunity to contribute. A few extra seconds longer than you would normally wait is usually all it takes. In fact silence is a greatly underestimated source of power. In silence, we can hear not only what is being said but also what is not being said. Switch and Shift: It is only through silence and stillness that we can come to our thoughts in any meaningful way and from that spring, take action we think best. Successful leaders do not consciously work towards creating an atmosphere of silence and instead capture and benefit from the moments as they happen.

Truth be told, we’re not likely to stop using our smart phones and electronic gadgets. Instead, our goal should be to consume more silence. It will help keep the noise from deafening us. And it will certainly help keep it from demoralizing us. Besides, silence is what makes sound meaningful in the first place. I look forward to hear from you at pavan@ittige.com on where you are in the journey of being silent and switching off your sensors to build quiet times into your schedule. Pavan Sriram is the CEO of ITTIGE Learning, a performancebased training company that works with organisations to improve learning outcomes. www.ittige.com

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MANUFACTURING EXCELLENCE

Wealthy Business through Healthy Customer Relationship Managing SME in India Part 44

For any business to achieve success customer relationship is as much important as offering quality in products and services, competitiveness in price etc. Although these are inevitable for satisfying the customers in the first place, keeping the customers as such for long term and getting new customers through the positive feedback of the existing customers, requires more efforts in establishing and maintaining an excellent customer relationship.

P S Satish gotopssatish@gmail.com

Keeping Customers happy, with increased expectations and requirements day by day is one of the challenges for the companies, especially small and medium enterprises. Business cannot survive only by bringing new Customers and companies need to strive to keep existing Customers happy. Satisfied or happy Customers do internal marketing for the company and with their positive feedback, new Customers will come in. It is a known fact that cost of acquisition of a new Customer is much higher than to retain the existing Customers. One estimate says cost as five times though it is difficult to estimate. For the sake of convenience, male gender is used in this article to refer Customers, but meant as neutral. Let us look at few points in order to keep existing Customers happy • Try to find out why the Customers want to do business with you compared to with your competitors or vice versa. Understanding the motive will

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help you to focus in that particular domain or area. It could be price, quality, service etc. • Companies cannot afford to be complacent just because a Customer is doing business with them. There may be so many reasons for him to do business with the company. He may not have any choice as of today. Ask explicitly the Customer whether he is happy and what improvements you can do

of ways how to make his experience enriching. • Be available to Customer always. How would we feel when our internet connection is down and service provider does not bother to pick up our call to resolve? Customer should be able to reach you easily through phone, mobile, email or other media.

• Always get in touch with the Customers through greetings, communicating information that would be use to Customer, updating latest improvements in your company etc. Customer would always like to be updated. Communication is a powerful tool to build relationships.

• Know your Customer as much as possible on his tastes, needs, wishes and expectations. This should be not only of current but also of future. Recognize the changes happening in his expectations. Make an effort to know also Customers’ individual tastes, say in music, cricket etc. You may talk about the areas of personal interest and also send some related information. This will enhance relationship.

• Look at critically the experience of the Customer each time he interacts with you. Is it positive? Think

• It is a vital mistake to promise Customer something and not delivering. It could be fixing appointment but not

turning up or showing up with delay. Each of such incidents will be registered by the Customer and may or may not express • Study your Competitors’ activities to check what they are doing to keep your Customers happy and see ways to outperform them. Work on areas where competitors cannot enter or difficult to imitate. Remember the sentence, ‘If you do not take care of Customer somebody else’ • Under promise and over deliver. But do not be too pessimistic. Customers will be happy when he perceives you have delivered more than the promise • If there is a complaint by Customer, listen to him carefully and appreciate the difficulty he is put in. Apologize for the inconvenience and make prompt efforts to resolve the issue at the earliest. Many times, quick and effective solving of problem will erase the problem itself in his mind.

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:Communication is a powerful tool to build relationships.

The message of whether Customer is happy or not may come in different ways – Complaints, Compliments, Product returns, Contract cancellations, market share changes, Customer defections or acquisitions, Customer referrals, closure rate of sales calls etc.

• Educate your staff and empower them to entertain any special and reasonable request from Customer. Define the limits your colleagues can stretch. For example, a sales staff is authorized to send parts by courier to Customer on a request from Customer. • How easy for Customer to do business with you? Look at your business processes end to end to make easy it easy for Customers to interact. Put yourself in the shoes of the Customer. For example, is your presentation easy for customer to understand, is your product packaging easy for customer to open, is it easy for Customer to send order on you etc. • Be consistent in your services and words. The Customer does not like fluctuations and prefers repeatability of good experience. Staff has to be trained on this. One fluctuation may make the Customer to look elsewhere. • If you are not able to increase business with the existing Customer, introspect to find out why to arrive at right measures. • Go beyond the expectations

August 2016

of Customer. Running an extra mile will go a long way • Show appreciation of/to any good act of Customer. Thank them for their feedbacks, suggestions and guidance. • You need to focus extra on those Customers who are giving maximum business to you. It does not mean others to be neglected • Be responsive to Customer queries or issues. Help customers out of the way when they have a problem. • Listen to voice of Customer (VOC). It may be very feeble and develop an art to hear whispering voices of Customer. E.g. Customer may be experiencing difficulty to get right product information in the website and he may not complain on this. • The message of whether Customer is happy or not may come in different ways – Complaints, Compliments, Product returns, Contract cancellations, market share changes, Customer defections or acquisitions, Customer referrals, closure rate of sales

calls etc. Develop appropriate measurements to monitor and to improve • Voice of Customer can be captured by questionnaire, interviews, formal or informal meetings, market intelligence, Customer satisfaction survey, Buyer’s behavior and casual contacts. • Typically, in small and medium sectors, we find using annual customer satisfaction questionnaire. It is done as a ritual to satisfy ISO requirements without close loop action. Good practice would be to go back to Customer with improvement actions initiated based on his observations or feedback. • It is seen that happy employees try to keep Customers happy. Work on to focus that right person is in the right job and is encouraged to put his or ideas into his area and opportunity to express his views. Motivation of employees plays a role. • Customer is not the custodian of marketing person alone. Management have

to ensure that everyone in the organization is oriented towards Customer. Everyone should feel proud of his contribution towards keeping his immediate Customer and end Customer happy. • Keeping Customer happy is not an annual ritual like Father’s day. It has to be practiced everyday by everyone By practicing above points, I am sure, you can keep Customers happy for long term business. Relationship gets enforced with happy Customers which in turn brings in additional business. Let us develop an internal organizational culture to serve Customer first to make him happy. Please send your inputs,remarks,opinionsand suggestions toP.S. Satish,Mentor and Capability Developer, M/s Saraswati Industrial Services, Q-103, MantriPara diseApartments,Bannerghat ta Road, Bangalore-560076. Email:gotopssatish@gmail. com;www.linkedin.com/pub/ satish-cp-pii/35/153/85b;Mob: 9845043202. Have a nice day

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TECHNICAL ARTICLE

iglidur HSD350: New high-performance plastic for continuous use in steam Free of lubrication, maintenance and corrosion, the new igus material introduces itself as a low priced alternative to metallic options

Santosh Jacob santhosh@igus.in

With iglidur HSD350 the motion plastics specialist now has a lowcost all-rounder in the product range for steam sterilisation during autoclaving. Particularly in the food and medical industries, the new plain bearing material clearly displays its advantages over metallic bearings. Autoclaving is one of the most important methods for killing bacteria during the production of foodstuffs, medicines and in the cleaning of medical products. In the standard method, heating to 121°C at 2

bar takes place in the pressure vessel for 15 to 20 minutes, or to 134°C for 2 to 3 minutes at 3 bar steam pressure with particularly resistant bacteria. A challenge for the individual parts of the machine, as well as for the bearing. For metallic bearings a special autoclavable lubrication is often necessary. However, the sterilisation affect is reduced significantly for product that use grease. Therefore polymer bearings are offered as a lubrication-free and maintenance-free alternative,

whose materials are resistant to heat, pressure and moisture. As standard and as a customised special part An all-rounder in the igus product range is iglidur HSD350, which is suitable for the hygienic continuous use even for regular sterilisation. The new material can withstand temperatures up to 180°C continuously and temporarily up to 210°C. Because of the corrosion-free property, iglidur HSD350 is ideal for use in wet areas and displays a

low moisture absorption and thermal expansion there. The new material also proves to be extremely resistant to media and doesn’t get ruined even in hot steam sterilisation. This provides the customer with the opportunity of designing bearings and joints so that perfect cleaning results can be achieved in more complex, nonseparable units. iglidur HSD350 is now available from a quantity of one piece and available for immediate delivery from 24 hours.

The iglidur HSD350 material is the new all-rounder for use in hot steam sterilisation: Low priced, corrosion-proof and maintenance-free. (Source: igus GmbH)

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August 2016


CNC Machine Tools

ITL Industries Ltd.

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August 2016

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CASE STUDY

DIGITAL MANUFACTURING & INDUSTRY 4.0 IN THE PORSCHE MOTORSPORT CNC COMPETENCE CENTER

With CELOS®, the Porsche Motorsport CNC Competence Motorsport Center of DMG MORI manufactures the highest quality components in perfectly organised processes.

Numerous podium positions, the double victory at The 24 Hours of Le Mans as well as winning the driver and team standings at the World Championship 2015 provide impressive evidence of one of the fastest stories of success in sports car racing. The technology partnership with DMG MORI also contributed to this success. The innovation leader in metal-cutting machine tool construction supplies the Porsche team with the latest manufacturing technology and,

moreover, acts as a supplier of high-quality components themselves. In the Porsche Motorsport CNC Competence Center at DECKEL MAHO Seebach, DMG MORI combines decades of machining expertise with cutting-edge software. CELOS® – taking the lead with consistent process organisation Performance, reliability and precision are factors that determine success or defeat in the world of motor sport,

“As an APP-based management and operating software package, DMG MORI enables both consistent management, documentation and visualization of order, process and machine data as well as the management of the machine on the shopfloor. In a unique way, CELOS® combines production planning and workshop into a highly efficient contractual service partnership.”

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Dr Thomas Hauer

August 2016


August 2016

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both on the racing track and in manufacturing. And this is precisely where Dr Thomas Hauer, production manager at DECKEL MAHO Seebach, sees the challenge for DMG MORI as a parts supplier: “Like in motor racing events, component manufacturing is also all about being faster and better than the others.” And that can only be achieved by using the latest technologies. By the end of 2015, more than 60 different components with a total quantity of over 2,300 individual pieces had been manufactured by DMG MORI for the Porsche team. The parts range, amongst other items, includes complex housings for pumps and electric motors as well as sophisticated mounting elements for the innovative braking system. The developers from the racing team supply the necessary CAD data, while the machining experts in Seebach are responsible for the entire process through to the finished workpiece. For DMG MORI and the Porsche team, CELOS® in particular has

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proven to be a cornerstone of their partnership. In the Motorsport CNC Competence Center, all machine tools are equipped with CELOS®. Moreover, the CELOS® PC version is available to the team. The CELOS® PC version serves as the central planning and management software. The individual jobs are completely detached from the machines by a control console. The Job Manager combines NC programs, the setup plan and the tools into one job. Accordingly, no technical drawings or documentation in paper form can be found in the Porsche Motorsport CNC Competence Center. The Job Scheduler then plans the job in detail and assigns it to a specific machine. The current status, as well as the effects of last-minute changes, can be viewed using the CELOS® control console. Here CELOS® helps to prioritise the work processes of the machine according to the respective delivery date. “In

DMG MORI process chain – with 1:1 simulation on the racing track One highlight of component production is the DMG MORI process chain. It includes design and programming as well as a subsequent 1:1 simulation of the NC program in the DMG MORI Virtual Machine. As the components for the LMP1 are produced “from a solid block”, the implementation of the milling strategy takes on central importance. On the one hand, the required programming strategy is available for every task in the process chain, no matter how complex, and, on the other, the virtual machine monitors feasibility as well as 100% collision safety. The importance of the DMG MORI Virtual Machine is comparable to that of the racing simulator for the pilots. “It enables 1:1 simulation of real machining on the PC – including machine kinematics and real control. This allows us to precisely adjust the machining process to the requirements of the individual component in order to continuously reduce ‘our lap times.’” explains Dr Hauer.

the fast moving area of motor sport, extremely short-term manufacturing jobs are simply a part of daily business. In addition to planning and management tools, as a control console CELOS® can retrieve data from all connected machine tools in real time. The

stored data can then be used to carry out operational analyses in order to optimise production in the short and medium terms. The networking of the machines in combination with the continuous recording of real-time data is an important step towards Industry 4.0.

August 2016


EXHIBITION & CONFERENCE – ALUMINIUM DIE CASTING 1 - 3 DECEMBER 2016 | BIEC, BENGALURU, INDIA www.alucast2016.com

For more information & space booking, please contact: NürnbergMesse India Pvt. Ltd.

Aluminium Casters' Association of India

Ms. Rucheeka Chhugani

Ms. Veena Upadhye

Tel +91 11 4716 8828

Tel + 91 20 2729 0014

rucheeka.chhugani@nm-india.com

alucastindia@gmail.com

August 2016

Organizer:

Event Producer:

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CASE STUDY

Unidrive M Variable Speed Drives Eliminate reliability issues and increases speed of production by 300%

Athader, based near San Sebastian in northern Spain, manufactures coil processing lines, mainly slitting lines and levelling and cut-to-length lines for steel, stainless steel and aluminium material. Equipment manufactured by the company, which is part of the Bradbury Group, is destined for customers that include steel coil processors, rolling mills and profile and tube manufacturers, 80% of which are located outside of Spain.

Until recently, in order to match customer specifications, Athader used a number of different brands for its drive requirements. However, the company was becoming increasingly frustrated with reliability issues. When a coil processing line line experiences a breakdown situation, there is a high probability of production losses for the customer, as well as the potential to damage mechanical parts. As a result, Athaderâ&#x20AC;&#x2122;s preference is to use drives, motors and global solutions supplied by Emerson. According to the company, because a number of its

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machines are bespoke in line with specific customer needs, the adapted solutions provided by Emerson are fundamental to business success.

(with a high pressure rating of 1100 Mpa) works at 50 m/min. Despite these elevated speeds, precision must be to within Âą0.2 mm.

This is important considering the type of machines manufactured by Athader, such as steel winders/unwinders, stacking machines, rolling machines, longitudinal and transversal shears, packaging machines and cutting systems. With regard to the latter, a rotary shear device for high thickness coil is expected to work at 100 m/min, while a flying shear system for very high yield stress material

Aside from the high performance and reliability of Unidrive M variable speed drives, Athader says that the products provide impressive speed and response, which in turn allows high dynamic application control with repeatable precision. The intelligent modules used with the drives permit the company to manage comprehensive programs requiring motion in several axes and profiles

synchronised with high precision. This involves fast and accurate movements that serve to minimise the number of rejected items and maximise production uptime, all without inducing stress on the mechanical parts. Athaderfavoured the straightforward integration capability of Unidrive M, thanks principally to a complete set of communication modules that support most traditional field buses and the latest Ethernetbased technologies. Among the recent applications at Athader was the development

August 2016


of a transversal cutting line for steel bands up to 25 mm thick and 1800 mm wide. The Emerson solution includes a control cabinet (8 x 800 x 2200 mm modules) and three control desks (entry, main and exit). The cabinet includes a total of 19 AC drives in a DC bus configuration that ensures stability and optimised energy consumption. Moving through the cutting line in sequence, the uncoiler is served by a single Unidrive M701 (45 kW) featuring an Si-Application option module and dedicated unwinder software. From here, the unwound coil moves into two levellers, each of which relies on two Undrive M700 units in parallel (180 and 160 kW respectively) with accompanying software. In addition, four Unidrive M200 drives (from 5.5 to 7.5 kW) are deployed for auxiliary elements. The next station, a flying shear, features one Unidrive M700 (110 kW) with Emerson’s dedicated software, along with a single Unidrive M200 (5.5 kW) for the conveyor. In addition, a total of 10 Unidrive M200 drives (from 0.55 to 5.5 kW) control further parts of the system, such as inspection and evacuation conveyors, stackers and stores. The cabinet also features two Emerson SPMC2402 DC rectifiers working in parallel. The complete line is controlled by a Siemens PLC, while adjustment and supervision is made via a 15” colour touchscreen. Two networking configurations are featured: Profinet connects the PLC with drives, encoders and remote I/O, while Ethernet allows the checking and changing of system

August 2016

parameters via a remote PC, including the parameters of the Emerson drives. This capability makes for easy fault-finding and element replacement. Athader states that working with Emerson’s solutions support has allowed the company to optimise its machine designs. For instance, production speeds have increased by more than 300%, from 200 to 600 m/min for longitudinal systems. In addition, the machines can now process a wider range of materials, from 12 mm band thickness (500 MPa) in the past, to the current 25 mm thick (1100 MPa). As a result of this evolution, Athader’s latest generation of machines offers a more intuitive environment for the operator. Furthermore, commissioning time has been reduced from 6 weeks to 3-4 weeks, while machine-side and remote control are better facilitated thanks to user-friendly software and Ethernet technologies. Before commencing the project, Athader sought a technological partner which would allow the company to progress its development efforts more quickly, which has certainly turned out to be the case. Aside from the high quality of its products and solutions, Athader was attracted to Emerson because of its expertise, proactive attitude, hands-on approach and open collaboration with its technicians. Moving forward, Athader expects to introduce more products from the Emerson portfolio into its production, including high efficiency induction motors, high dynamic AC motors and geared motors. For more details visit www.EmersonIndustrial.com/ Automation

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MART UPDATE

ElMeasure Inaugurates New Plant in Bangalore Leading energy management services company ElMeasure based in Bangalore has moved to its new state of the art manufacturing and R&D facility at the Hardware Park near the Bangalore International Airport. The new plant measuring close to 60,000sq in a three acre plot houses the manufacturing facility along with the new R&D center.

ElMeasure’s new facility will enable the company to increase its production capacity and also accommodates future business growth and demand for energy management products and solutions in India and globally. The company offers energy management solutions, to a wide range of industries

and service segments providing energy saving strategies and

helping minimize cost and consumption.

Hypertherm Introduces New SilverPlus Technology for Plasma Cutting at 400 amps U.S. based manufacturer of plasma, laser, and waterjet cutting systems, Hypertherm is introducing SilverPlus®electrodes for its HyPerformance® HPR400XD® plasma cutting systems. Thorough laboratory testing shows SilverPlus electrodes last 50 percent longer than standard copper electrodes in most cutting applications. Instead of replacing the electrode at a pit depth of 0.040 of an inch as recommended with standard copper electrodes, SilverPlus electrodes are designed to last to a pit depth of at least 0.080 of an inch. In addition, the electrode delivers a very consistent range 4 and 5 cut quality throughout its life. This allows owners to lower their operating cost with no impact on cut quality or speed.

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Hypertherm’s SilverPlus electrodes are differentiated from other silver electrodes on the market in the way they are manufactured. By fusing the silver tip to a copper blank, using a patented process prior to electrode machining, Hypertherm electrodes have the best life and consistent performance. When used with an oxygen plasma gas on mild (carbon) steel, SilverPlus electrodes can burn deeper than copper electrodes extending the life of the electrode. Additionally, silver electrodes help to preserve the size and shape of the nozzle orifice increasing nozzle life as well. “Our SilverPlus electrodes are proven to deliver performance benefits to owners and operators of our

HyPerformance systems,” says Martin Geheran, a consumables product manager at Hypertherm. “At the same time, the increased electrode life also translates into double the nozzle life, helping owners lower their consumable costs.” In addition to the new 400 amp electrode introduced today, Hypertherm also offers 130, 200 and 260 amp versions with similar performance. Please contact Hypertherm or an authorized partner to request samples of SilverPlus electrodes. Hypertherm designs and

manufactures advanced cutting products for use in a variety of industries such as shipbuilding, manufacturing, and automotive repair. Its product line includes plasma, laser and waterjet cutting systems, in addition to CNC motion and height controls, CAM nesting software, robotic software and consumables.

August 2016


Grundfos Installs Energy Efficient Pumps for India’s Metro Rail Projects Leading pumps manufacturer Grundfos India has successfully installed around 100 energy efficient pumping systems for air-conditioning and plumbing applications in five key metro rail projects around the country. These five projects include Chennai Metro Rail Limited, Mumbai Metro Rail Limited, Delhi Metro Rail Limited, Hyderabad Metro Rail Limited and Jaipur Metro Rail Limited.

company offers pumps that help in reduction of life-cycle cost with high-efficiency and reliability. Grundfos made sure that every requirement for the metro rails were met especially in terms of product design, compatibility, superior technology, factory mounted tested and certified system, service support and for easy operation. The pumps installed at these metro rail projects are:

The transportation sector is a major consumer of energy, around 13% according to UNEPR is ø Centre on Energy, Climate and Sustainable Development. Given the growing need and usage of Metros across the country, there is a huge need to provide access to mobility in cities, however ensuring low carbon emissions. The metro rail sector hence has a big opportunity to cut down the emissions by adopting a sustainable approach, one of them being the usage of advanced energy efficient products and solutions.

• Hydro-pneumatic pressure boosting systems: These booster systems are made to the very highest standards and can handle even the most difficult boosting jobs with ease and accuracy. They can be used wherever additional pressure is required. Each booster model has been designed to meet specific customer demands for capacity and control.

Grundfos’ advanced energysaving technology and high efficiency can reduce the average pump’s energy consumption by up to 60%, one of the reasons these Metro Rail projects chose to opt for Grundfos. The

August 2016

• Grinder pumps (SEG series): Grundfos grinder pumps (SEG) are specifically designed for areas with no sewer systems or areas where gravitation systems are unsuitable. The high discharge pressure enables transfer of effluents and sewage over longer distances to the public sewer or sewage treatment plant.

• Dewatering pumps (DPK and DWK series): DWK/DPK are excellent pumps for dewatering and draining applications. The combination of compact design with high-pressure capability makes the pumps suitable for use in pits, whether for temporary or fixed installation. • Back pull-out range of centrifugal pumps (LF Series): These pumps are used in water supply, industrial pressure boosting, industrial liquid transfer, HVAC. Grundfos end-suction pumps are multipurpose pumps suitable for a variety of different applications requiring reliable and cost-efficient supply. • Submersible pumps (SP series): Grundfos submersible pumps are renowned for their high efficiency and reliability throughout the range. They are ideal for groundwater supply to waterworks, groundwater lowering and pressure boosting. Commenting on the successful installation, Gangaprasad G, Vice President – Sales (Building Services), Grundfos India, said, “Metro stations are either underground or

The Grundfos Hydro MPC booster systems

DWK Series pump

elevated ones. In an underground configuration, pumps are used for air-conditioning too apart from drainage, water supply and firefighting. Energy efficiency, reliability, low service downtime form the corner stone for any public utility service. Grundfos with its razor sharp focus on energy efficiency is a preferred brand under such considerations. With its pan-India presence, there is an assured support whenever the customer is in need of one”.

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Omron unveils new Panel Solutions Moving ahead with its product line expansion strategy, Omron Automation the global leader in sensing & control + think technology, has announced addition of upgraded panel solutions to its portfolio. The solutions endeavour to increase operational efficiency and address the need of cost

saving at manufacturing sites by downsizing facilities or equipment. The solutions are engineered to address the next generation requirements of control panels. It comprises of lighter, slimmer and short-bodied components which aid in reducing the size of

â&#x20AC;&#x153;Control panels play an integral role in the manufacturing ecosystem. They are also fundamental to automation and process control systems. A manufacturing site with robust operations surely needs such innovative solutions to achieve efficient production to further enhance the business ecosystem. Considering their importance, I believe these value-additions will surely find a positive response from our customers.â&#x20AC;? Sameer Gandhi Managing Director, Omron Automation

facilities, equipment, floor space as well as a decrease in the cost of logistics. The advanced and customised design results into a considerable saving of deadspace (by almost 50%) and also augments the width between wiring ducts further leading to a compact control panel. The panel solution range comes with push-in terminal design which help customer to reduce the panel wiring time and hence saves overall operation time. This provides more flexibility in design changes and component additions, hence, facilitating future expansion plans. One of the key requirements of a sturdy panel is a maintenance friendly design. Omron solutions are crafted to increase the product lifespan by controlling

the heat dissipation and improving air circulation reducing hot spots in the control panel which in turn improves the reliability of panel components, reduces failure rate, and increases the life span of the product leading to further cost savings.

Baumer invests in a new development and logistics center on Lake Constance The sensor specialist Baumer is investing in its future with a new building in Stockach on Lake Constance (near to Constance) in Southern Germany. At the Stockach â&#x20AC;&#x201C; Bodman-Ludwigshafen site, in addition to a central logistics center for Europe, a new high-tech center for Research & Development and Production is being built. The investment volume is approximately EUR 30 million. In doing so, the international family-owned company is intensifying its sustainable and long-term development

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of the Baumer Group. The aim of the new logistics center for Europe is that it can react more quickly and flexibly to the rapidly growing demands of the market. In the new high-tech center, importance is placed on sustainability and the latest infrastructure with a high level of networking between humans and machines (Industry 4.0). The project is being realized in several construction phases. In the course of the year, three buildings

Groundbreaking ceremony for the new development and logistics center at Stockach (on Lake Constance) should be built on the 48,000 square meter site: a threestorey production building, a logistics building, and an

administration building. For more details visit www.baumer.com

August 2016


IIT Roorkee first IIT to undertake the digital transformation The very first for any IIT campus in India, IIT Roorkee announced a formal “Go Live” for the implementation of its Wave-I of the ADVAITA IIT Roorkee ERP Technology deployment. The announcement for operationalization of the SAP Enterprise Resource Planning (ERP) project was made at an “ADVAITA: IIT Roorkee ERP

Project Go-Live” event held at the Senate Hall, James Thomason Building, at the IIT Roorkee Campus. Over a period of time and with completion of Wave-II next year with campuswide integration, ADVAITA SAP ERP System would help IITR achieve a greater

“In the footsteps of IIT Roorkee heritage and legacy of many firsts, Wave-I of ADVAITA ERP digitization project, we add another feather in the cap of IITR by becoming the 1stIIT in India to have chosen for operational digital transformation across our campuses. A whole new world of possibilities awaits us, like never before; our challenge is, not only to embrace this change unwaveringly, but also to leverage its potential to the fullest.” Professor Pradipta Banerji Director, IITR

August 2016

“We are very pleased to be accompanying IIT Roorkee in its digital transformation journey with the implementation of a highly integrated and process driven SAP ERP system. IITR will benefit from the integrated portfolio of Atos services as well as our long-standing, solid experience in both the SAP ERP environment and in the service industry.” Shirish Phadke Vice President, Atos focus on analytics, better and quick decision making, robust and accurate business information, improved financial reporting, and simple easyto-use interfaces; all of which shall be valued as the system kicks-off on conclusion of the project. The SAP ERP System would empower the IITR workforce leading to eventual devolution of decision making to ease the operational administrative procedures.

Like any enterprise-wide ERP implementation, ADVAITA: the ERP project has brought in its own unique blend of challenges and opportunities for IITR, but nevertheless, this will enable and empower IITR to adopt industry best practices in areas of financial management, human resources, logistics, Project Systems, plant maintenance among others.

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Matrix launches multispectral fingerprint readers Matrix, a leading manufacturer of Physical Security and Telecom solutions has announced the launch of its cutting edge Multispectral Fingerprint Door Controller - COSEC DOOR FMX, expanding its Access Control and

Time-Attendance portfolio to address high-security and industrial needs of modern enterprises. COSEC DOOR FMX multispectral technology reads the surface and the subsurface of a live

fingerprint and derives very clear and strong image even when the surface layer is damaged due to continuous physical work, dirt, dry-skin, oil,ink, chemicals or such other environmental reasons. DOOR FMX’s unique multispectral

“Compared to the traditional biometric readers scanning only single skin layer, multispectral technology employs multi-layered reading. COSEC DOOR FMX offers significantly better False Acceptance Ratio (FAR) and False Rejection Ration (FRR) making it ideal for both - high-security and harsh industrial applications. COSEC DOOR FMX is specifically designed for organizations which cannot afford compromising security due to wrong user identification” Ganesh Jivani CEO, Matrix

identification process outperforms commercial fingerprint sensors and offersrobust and predictable biometric identification. For more details visit www.MatrixSecuSol.com

IXXAT CAN@net NT 200 – the multi-functional CAN-to-Ethernet gateway The new IXXAT CAN@net NT 200 is a CAN-to-Ethernet gateway which allows users to connect CAN and Ethernet. Thanks to its two operating modes, CAN@net NT can be used as CAN-Ethernet-CAN bridge and as CAN-to-Ethernet gateway. Equipped with two CAN interfaces, it supports an even wider range of use cases compared to the well-known CAN@net II. One of the key features of the CAN@net NT – which is especially useful in e.g. building automation – is the ability to separate CAN networks that are distributed over large areas. CAN@net NT couples the CAN networks via a backbone Ethernet system, allowing existing infrastructures to be used. This segmentation also increases the reliability and stability of the overall system.

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Enables remote access Designed for high performance in harsh environments, another common application for CAN@ net NT is remote access to CAN networks via Ethernet – e.g. in wind power plants or in the manufacturing sector. CAN@ net NT enables service staff to get access to plants all around the world, simplifying control, service and monitoring of CANbased plants, reducing costs and downtime significantly. Besides the bridge operation, linking two CAN networks via Ethernet, the CAN@net NT 200 can also be directly accessed from Windows, Linux, VxWorks or QNX based systems as well as from embedded systems, by using a simple ASCII protocol over a standard TCP/IP socket.

CAN@net NT supports all CAN baud rates from 5 kBit/s to 1 Mbit/s, as well as simultaneous use of 11 and 29 bit identifiers. The TCP/IP-based protocol ensures that no CAN messages are lost when transmitted over Ethernet. The device configuration is easily made by using a Windows configuration

tool. More variants of the CAN@net NT, with PC interface operation mode, 4 CAN channels and CAN FD support will soon be released. For more details visit www.ixxat.com.

August 2016


Scott Safety launches new Duraflow

Respiratory expert Scott Safety introduces Duraflow, a lightweight and ergonomically designed Powered Air Respirator with sophisticated real-time air flow control technology. The new solution gives complete wearer assurance of respiratory protection to focus on the job rather than the protective equipment itself, in a multitude of hazardous situations and industries. Duraflow’s automatic monitoring features ensure the airflow rate is maintained at precisely the correct level to afford protection for the user. Visual and audible diagnostics alert the user of any drop in airflow below the required level or when the battery needs re-charging. 2 high energy density battery options are available –standard and extended duration which can be selected depending on shift coverage required- less downtime more working time.

August 2016

Duraflow will help employers meet the needs of workers across all demographics- with its low respiratory burden. As highlighted in Scott Safety’s latest whitepaper, changes in lung function in older employees working in manual positions can reduce their ability to undertake certain active tasks. By providing workers with a cooling stream of purified air, Duraflow can for some workers make the difference between whether a job can be completed or not. Highly versatile, Duraflow is compatible with a plethora of Scott Safety headtops, filters and accessories, protecting workers from a variety of environmental hazards. For more details visit www.scottsafety.com/ emea.

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THE LAST LEAF Dear Readers, Google has agreed to partner with Railways to digitise its heritage assets and help create a digital repository for universal online access free of cost, said a senior Railway Ministryofficial. Indian Railway has a huge list of heritage assets including bridges, steam locos, buildings, artifacts and museums which can be showcased for global audience. An agreement in this regard will be signed soon between National Rail Museum and Google Cultural Institute (GCI). GCI is a non-profit organisation that partners with cultural organisations to bring world’s cultural heritage online. GCI builds online tools and offers them to institutions for showcasing and sharing cultural assets. China CRRC Corporation Ltd., the country’s largest high-speed train maker, announced on Saturday that its first joint venture plant in India has started operations. State-owned Gail (India) Ltd said on Saturday it will tie up with California-based closely-held firm Bloom Energy Corp. on Monday to pursue natural gas-based fuel cell power generation, a new technology. Bloom Energy claims its technology converts fuel into electricity through a clean electro-chemical process, which can use a variety of fuels, including biogas. Unlike traditional power generation, Bloom uses virtually no water and produces no unhealthy emissions, it stated. (Courtesy: Economic Times) India is home to the third largest number of technology-driven start-ups in the world, with the US and the UK occupying the top two positions, having 47000 and 4500 respectively. India’s tech start-ups numbered around 4,200 up to 2015 - the disruptive innovation in technology and process is creating newer Indian start-ups. Aiming to incubate 50 early stage startups and create at least five global companies over a period of five years, the Ministry of Electronics and Information Technology (MeitY), has set-up Electropreneur Park at University of Delhi, South Campus. This incubation centre has been set up through a consortium of the government, academia, and industry represented by Software Technology Parks of India, Delhi University and Indian Electronics and Semiconductor Association. Two Indian companies – Cipla and Godrej Consumer Products – have been named in Fortune magazine’s list of top 50 companies that are addressing global social problems as a part of their core business strategy. The list is topped by GlaxoSmithkline, followed by IDE Technologies (Israel) and General Electric. Consciously, we are making an attempt to create a positive outlook around us aimed at facilitating to stimulate and energise our industry atmosphere. Your feedback in this regard is welcome, to enable us improvise our channel of information and motivation to our readers for a better tomorrow. Till then, Happy Technology! Manoj Kabre Member, Editorial Advisory Board

August 2016

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