PROVIDING QUALITY CONSTRUCTION MACHINERY ACROSS THE GLOBE
TATA HITACHI CONSTRUCTION MACHINERY
2 | APAC Outlook issue 49
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Indian Industry Leaders A key player within the Indian machinery manufacturing industry, we spoke to Tata Hitachi Construction Machinery about the sector in the wake of COVID-19, and what it takes to stay ahead Writer: Marcus Kääpä | Project Manager: Joshua Mann
I
ndia is synonymous with large-scale industry. The vibrant country provides substantial and various resources across the world, from refined petroleum, cars, machinery parts and metals, to chemicals, cotton and rice. Within the manufacturing sector, construction equipment production is one of India’s key provisions. Despite the negative impacts of the COVID-19 pandemic, the demand for construction equipment has been gradually recovering over the past six months. The industry witnessed a 20 percent year-over-year (YoY) volume growth in the second quarter of 2020, followed by double digit growth in October and November of the same year.
And presently, with the implementation of COVID-19 vaccines across India, business and customer confidence has improved in all sectors allowing for a faster overall revival of the industry. “In the present, the outlook for the construction equipment industry remains positive on the back of robust infrastructure investment by the Indian government,” begins Sandeep Singh, Managing Director of Tata Hitachi Construction Machinery Company Private Limited. “Highway construction and awards for the period of April to December of FY21 have increased by 12 percent and 110 percent respectively. In December of 2020 alone, 1560 kilometres of highways were constructed; an increase of approximately 60 percent YoY. These are exciting times, and it makes me happy to be a part of the growth of our country.” A joint venture between Tata Motors Limited and Hitachi Construction Machinery Company Limited, Tata Hitachi provides world class construction equipment to address India’s infrastructure and mining requirements. APAC Outlook issue 49 | 3
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Proud to be part of our customers’ success With its diversified product portfolio and location spread, Motherson ensures alignment with customer needs and requirements at all times. We are always ready to support our customer with truly comprehensive solutions from development to delivery. Motherson is proud to be part of the world’s leading OEMs and their journey.
Relationship with Tata Hitachi “Motherson is proud to be a trusted partner of Tata Hitachi. Our group companies Motherson Sumi System Ltd. (MSSL) and Motherson Bergstrom HVAC Solutions Ltd. (MBSL) are supplying high-quality electrical distribution systems and climate control systems to Tata Hitachi in India. We will always ensure that we continue developing capabilities to support Tata Hitachi for all its current and future requirements.”
TATA HITACHI CONSTRUCTION MACHINERY maintenance contracts, extended warranty, maximise the returns of the customer’s investment by optimising equipment utilisation. It also helps strengthen our relationship through the customer life cycle experience.” To stay at the forefront of Indian machinery manufacturing, Tata Hitachi focuses on three key aspects of business development and operational improvement. Innovation is seen by the company as a critical element of its success, and something it strives to maximise across the board. In its competitive market, Tata Hitachi’s teams keep working on the development of new and improved products and processes. This is exemplified by several of the company’s developments, such as a special quarry version of a construction range of excavators,
IN THE FACE OF COMPETITION In a competitive industry, and with increasing market pressure caused by those such as Chinese equipment manufacturers, Tata Hitachi ensures that fair, transparent and customerorientated policies are at the core of its business. “Tata Hitachi concentrates on the importance of offering quality product solutions to customers and ensuring they are well looked after,” Singh informs us. “For the company, customers are always at the forefront of decision-making.” Tata Hitachi’s business developments embody these customer-centric values at the heart of company operations. The company is looking to add new products to its portfolio of offers and is currently working on the development of adding new variants in the mini and mid-size excavator sphere and a new 5T wheel loader.
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The company focuses on developing global products to suit Indian working conditions, and the organisation’s product line-up includes a wide range of excavators from two to 800 tonne excavators, 35 to 290 tonne rigid dump trucks, as well as wheel loaders and backhoe loaders. Tata Hitachi’s two plants at Dharwad, Karnataka and Kharagpur, West Bengal, epitomise world class manufacturing and state-of-the-art technology. “At Tata Hitachi, we prioritise our outreach to customers through a strong distribution network that aids in the servicing and selling of products,” Singh assures us. “Our vast network includes a marketing head office, regional offices, branch offices, four regional parts warehouses and dealerships spread across the length and breadth of the country. Our dealers are our extended arms – the face of customer connection. “Our comprehensive range of support solutions such as full maintenance contracts, annual
the super long front and rail pulling attachment, SHINRAI experience zones at dealerships designed to improve customer experience, and mobile workshops to provide on-site repair services to our customers working in remote locations. On top of this, there are re-manufactured components as cost effective solutions to company customers, and a mobile app (e -DOST) for online call management and service monitoring. In line with this maximisation of innovative development, Tata Hitachi has followed a multipronged approach to the increased digitalisation and automation.
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TATA HITACHI CONSTRUCTION MACHINERY
RSB Transmissions RSB is a global engineering industrial institution, founded in 1975 by two enterprising brothers from Jamshedpur, Mr. RK Behera and Mr. SK Behera, with a passion and dedication to do something different: to traverse a path hitherto untraveled. Growing up in the midst of the innovation and success of Tata Hitachi, the brothers were deeply influenced and inspired by the entrepreneurship of the company and its core employee, community and environmentally centric values. Tata Hitachi’s values have inspired the brothers and echo in all they have accomplished. RSB’s enduring relationship with Tata Hitachi dates back to 80’s when UH 083/181 was launched in India. Today, in the span approximately four decades, RSB has carved out a niche in the global market. The firm is proudly spread over seven locations in India with a total of 13 plants, as well as a plant in both the US (Homer, Alaska) and Mexico (Silao). RSB currently operates in two verticals, namely automotive and CMI (construction, mining and infrastructure) equipment and aggregates.
“With the help from Hitachi Construction Machinery, Japan, we introduced IoT in our hydraulic excavators with the launch of our GI series of machines in 2012,” Singh explains. “Consite is a consolidated solution service that links customers to their machines on the construction site. We present the machine’s key operational data through this system. The initial adoption was slower than our expectations, however with focussed efforts we were able to demonstrate the value addition this feature could provide to our customer’s operations. 8 | APAC Outlook issue 49
“Based on this feedback and experience we introduced inSite, a GPS and GPRS based remote machine monitoring application for our EX-series of excavators and wheeled products. inSite is locally developed and provides details such as machine condition, operational hours, location, geo fencing and more.” With the world increasingly addressing the issues regarding environmental protection and preservation, Tata Hitachi places a lot of focus in its sustainability operations.
In the automotive vertical, RSB is a leading global manufacturer of various parts and systems for medium and heavy commercial vehicles, passenger cars, tractors and light commercial vehicles. In the CMI segment, it is a leading manufacturer of heavy fabrications and aggregates. When RSB looks back to its history with Tata Hitachi, it stands as both a momentous journey and a great relationship built on togetherness and customer satisfaction. With this relationship enduring into the future, Tata Hitachi’s values will continue to echo in every precinct of RSB.
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TATA HITACHI CONSTRUCTION MACHINERY
“Tata Hitachi has identified some core target areas to work upon under the Global Sustainable Development Goals indicated by United Nations General Assembly,” Singh tells us proudly. “We are working on reducing CO2 emissions and carbon footprint by improving our operational efficiencies, utilising solar power and improving our product lifecycle. “The whole organisation is working to reduce paper and increase automation under the “paperless office” initiative. We are also improving our products to optimise
and reduce the fuel consumption in a bid to reduce emissions further. There have been tree plantation drives undertaken by us for last many years to increase forest cover around our factories.” Both company plants at Kharagpur and Dharwad are zero discharge plants. Additionally, Tata Hitachi has put considerable efforts towards rainwater storage and ground water regeneration. The new admin blocks in both of the plants are officially certified as eco-friendly green buildings.
PEOPLE-CENTRED OPERATION Tata Hitachi emphasises employee and individual development. Planned job rotations, involvement in CFTs, exposure to the best practices, senior leadership mentoring and regular training help build knowledge and skills, are a few elements of employee-centric focus the company prioritises. 10 | APAC Outlook issue 49
SANDHAR “Our association with Tata Hitachi is over 2 decades now, where we have been supplying Operators Cabins for Excavators and Backhoe loader machines. The journey has been really cordial, we value our relationship and are glad to have them as our customers. We are very confident that the business will flourish to new heights in the years to come.” Jayant Davar Co-Chairman & Managing Director SANDHAR GROUP “We, at SANDHAR , feel privileged to serve TATA HITACHI and are grateful for the trust they have placed in us. Our Continued commitment lies in complete satisfaction of each product we sell to them. Thank you TATA HITACHI for letting us being part of your success story!! Gurvinder J. Singh COO – Cabins & Fabrication Division
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TATA HITACHI CONSTRUCTION MACHINERY
becoming one. Once I finished my engineering training and study, my interest was piqued by what customers actually wanted from the products they bought - what it was that swung their purchase decision. This laid the foundation of my customer centric approach in marketing, something which I have carried forward across industries.
Sandeep Singh
APAC Outlook: How did you come to find yourself in the manufacturing industry? SANDEEP SINGH: “The world of automobiles, machines, and devices aroused my curiosity as a child. I used to wonder how cars operated and how each part of a car complements the other to function in complete rhythm. What intrigued me most was how these machines moved. I thought that the creators of these machines were magicians with innovative powers - my belief grew with age. Even today, I believe that engineers are prime innovators; those who amaze and captivate us with their creations. It was this belief that led me to chart my course as an Engineer. And I set my heart on
KGP administration building
12 | APAC Outlook issue 49
With an experience of over three decades in sales, marketing, and customer support and general management, I have worked in industries across automobiles, tractors and construction equipment sectors in India and abroad. I am an engineering graduate from the National Institute of Technology Surat and began my career with the Mahindra group – where I worked in the tractor and automotive divisions. Following this, I had a five-year stint in the construction equipment industry with JCB India, where I was the Executive Vice President of Sales and Marketing. A large part of my career was spent at Toyota – 22 years over three stints. My last assignment was as the Deputy Managing Director and Chief Operating Officer of the India operations. Post this, I moved – as a part of an International Assignment - to Toyota Motor Asia Pacific Head Quarters and was based at Bangkok, Thailand where I was responsible for leading the strategy planning function. In 2015, I joined as the Managing Director of Tata Hitachi Construction Machinery Company Private Limited. I am also the Executive Officer – Hitachi Construction Machinery, Japan.”
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Tata Hitachi employees are encouraged to take higher responsibilities and challenging assignments at a very young age with “Freedom-to-Fail” to build their confidence. Succession planning remains one of the key parameters on which the leaders are evaluated. “Building capability of the employees is the first step towards empowering employees. When employees are capable, senior leaders can trust the employees to take the right decisions,” Singh tells us. “It is also very important that employees can be trusted so as not to resort to wrong means to achieve the results. This is made possible by continuous reinforcement of ethical standards, adherence to Tata Hitachi’s Code of Conduct and company
values instilled in the employees by the senior leadership. An open-door policy makes senior leaders highly approachable and available for support all the time. “Tata Hitachi has a strong KPI culture and senior leaders are challenged all the time. Without building a competent and trustworthy team and proper delegation, it would not have been possible to achieve results.” In the future, Tata Hitachi will be looking to ramp up production to ensure that it is able to provide its customers with the right machines at the right time. The company will work closely with its partners to improve their capacities on top of this. “Ensuring availability of material is going to be the first priority for us. We are also working on some new
products to ensure that we have a solution for the varied needs of our customers,” Singh confirms. “Another area which will continue to be in focus is localisation of components and indigenisation of some products that we are currently importing. “We would like to source locally as much as possible to optimise costs and to protect our business from uncertainties of FOREX fluctuations. This also dovetails very well with the “Atmanirbhar” initiative of the Indian government.” With increased mechanisation being a priority, Tata Hitachi is seeing a great requirement for various types of attachments to complement its base machines. The company is planning to introduce an array of attachments to ensure that it is able to provide its customers with a onestop-shop kind for solutions.
TATA HITACHI CONSTRUCTION MACHINERY Tel: 080 66953301 info@tatahitachi.co.in www.tatahitachi.co.in
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TATA HITACHI CONSTRUCTION MACHINERY Jubilee Building, 45 Museum Road, Bangalore 560025 Tel: 080 66953301 info@tatahitachi.co.in www.tatahitachi.co.in
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