Strategic planning & innovation is required to keep the SMEs afloat Dr. Bhatia

Staff Reporter | 03 Oct, 2006

Since its establishment in 1986, how has FBT Industries (P) Ltd. charted its destiny?

FBT Industries (P) Ltd. has created a benchmark in its orb since its inception in the year 1986. We are an international group specialized in development, production and sales of Automotive and Industrial Rubber Products. We are established OE suppliers to major Auto and Industrial Brands and the Railways and Defence sectors. Over the years, FBT has embed its standing in its arena as one of India's leading industries leveraged by its efficient management, high quality products, innovative techniques and veritable market knowledge. Our well-equipped infrastructure with hi-tech manufacturing facilities is the core secret of our success. I joined the group in 1999 and had to take certain management decisions to pick up the pace and increase our market share. Today, we have not only achieved the set targets but also have become a milestone in the field of manufacturing automotive and industrial rubber products.

What are the key trends that you are facing in the industry today? What strategies have kept you afloat during these testing times?

At present, the rubber industry is reeling under tremendous pressure. Whether it is the unthoughtful policies declared by the Government or the unrestricted import of cheap quality products available at low prices, the industry is getting victimized. The price of rubber is sharply going high. In comparison to last year, the rubber prices have gone notably high. Red tapism and high power charges are also hurting our industry under the present scenario. With various SEZ coming up, I feel that it will slowly kill the small time players. Though the flow of the river has been against us, yet certain pre-planned strategies have kept us afloat. Innovation and cost effective techniques have helped us to stay in good shape. Technologies and the skilled labours have also assisted us to keep sailing.

What are the innovative practices and processes you feel your sector should follow in order to stay ahead of competition?

The Indian rubber industry is facing stiff competition in the domestic as well as international market. The implementation of the following steps would help our sector stay ahead of the competition:

»	Fetching up of techniques for low cost formulation of end products by R&D team
»	Up-gradation of technology for optimum utilization of resources
»	Routine execution of Operational Research
»	Developing techniques for optimum utilisation of energy
»	Stress on skilled labour in their respective areas of specialization
»	Manufacturing of quality products

Despite bountiful resources, what according to you ails the rubber industry of India?

The rubber industry was once upon a time a fast growing industry in India. Despite bountiful resources, this sector has been decelerating since the past few years. There are number of factors for This downtrend, which are:

»	Lack of availability of energy to be consumed in the manufacturing process
»	Difficulties in acquiring loans from financial institutions
»	Absence of one-window clearence system
»	Non-adherence to time management system
»	Low availability of skilled man-power
»	Absence of a forum to save the industry
»	Freezing the rate for assisting the growth
»	Lack of restriction on the import of synthetic rubber and other raw materials.

These all have resulted in the deceleration of the rubber industry by 50% and the surviving few are having tough time maintaining their stand and continuing the industry profitably.

Environmental issues are core to your corporate philosophy. How are these issues tackled by your company so as to discharge its corporate obligations?

FBT Industries Pvt. Ltd. has long recognized the importance of issues related to the environment, and has adopted a range of measures to control pollution. Our decisions are based not only on the financial/economic factors but also on the social and environmental consequences of our activities. Our workers are our strength and their safety is our responsibility. We have provided them with all the safety equipments that they require while working in the complex. We have separate line for disposing of sewage so as to not to pollute the adjoining areas and lands. The rubber industry is one among the few industries which is blamed for exhausting harmful toxic fumes into the environment. We, at FBT, have taken steps to reduce the harmful fumes and have used the required technologies so as to ensure that whatever fume is exhausted is way under the danger level and permissible enough.

Is India's Rubber Industry technologically updated like their foreign counterparts?

Updating the existing infrastructure of a plant with the up-to-the-minute technology is a must to cope and stay at par with the competition in the international scenario. India's Rubber Industry technology is not at par with its foreign counterpart. There is ample room for improvement. The industry requires financial and other required assistance from the Government. The excise and other duties, which are hampering the growth of the rubber industry should be kept in check. We, no doubt are giving them a tough competition, but to continue the same and for an enduring sway over the market, we need to update our technology. The Government should provide loan for buying such helpful technologies and machineries. We also need to have a common platform to raise our voice and share our knowledge about the changes and advancement in technology among other important issues.

What are the prospects for future that FBT Industries Pvt Ltd. aims for?

Opening up new vistas in the same turf or diversification into different arenas do help in puffing up the assets of a company. We are planning to diversify into the automotive spare parts industry, which would help us in capturing and thereby consolidating our market share. We are also venturing into the supply chain for the four wheeler industry. We are continuously focusing on our Research and Development unit to deliver superlative products to our valued clientele. To accelerate our growth as well as to fan our reach, we are increasing our participation in various forums and trade fairs.

Your contribution to the Indian economy was recently acknowledged by the Government of India and you were Honored with the prestigious award- Bhartiya Udyog Ratan Award. How did you feel?

Credit gained is worth acknowledged. Awards and accolades do boost up the spirits and the morale of an individual who strives and works constantly towards the fruition of set goals. It was a welcome surprise to me when I came to know that I was nominated for the prestigious Bhartiya Udyog Ratan Award. Such accreditation encourage the individual and the whole team to further work fervently and efficiently towards the actualization of newer goals, thus contributing to the development of the economy as a whole. I am excited and happy for getting this recognition.

India's Automotive Industry has grown tremendously. What has been the effect of this growth for Automotive and Industrial Rubber Product sector?

The Auto Industry occupies an exalted place on the palette of the Indian Economy. Due to its deep forward and backward linkages with several key segments of the economy, this industry has been the propeller of economic growth. With the industry growing tremendously, it has been positively affecting our sector by augmenting our growth. The automotive industry look for superlative quality products and the companies delivering the same remain in their good books. This has given rise to clean competition within the domestic sphere at the same time exacerbating its growth.