A New Age of Manufacturing in IndiaDriven by Technology

Mr. Jamshyd Godrej

MD and Chairman, Godrej and Boyce

Manufacturing Companies are adopting disruptive business models - expanding industry boundaries

• Aircraft engine manufacturers prefer tosell engines ‘as a service’ and paymentslinked to the flying time, up time andengine performance

• The airline, ‘pay for use’ instead of asingle up front payment

• Manufacturers must be able to providemaintenance to ensure flyingperformance

• Agricultural equipment manufacturersusing real time method to analyze soil andweather conditions to help farmersdecide what crops to plant where

• Farm machinery can be remotelyreprogrammed to alter their behavioraccording to the recommendations

• A online portal collects data from theuser’s fields as well as others which canbe used as an aid for decision making

2

Companies are bundling Physical Products with Smart Digital Services

Industry 4.0 is a means to respond to changing customer and market demands

Changing customer preferences

Customers are looking for:

• Personalization

• Ability to ‘craft’ the product

• Information transparency

• Pay for use

Changing market dynamics

• Manufacturing companies have realized product sale is one time transaction which has a tendency to commoditize

• Manufacturers extending the relationship throughout the product lifecycle by maintaining a constant touch with customers

• Constant touch with customer helps retain competitive edge as well as generate stream of revenue

3

Image source: HBR.org

In manufacturing, India lags behind compared to other countries…

4

Source: World Bank Source: HIS Global Insights; McKinsey Global Institute analysis

Share of global manufacturing GDP (%) Large development economics are moving up in global manufacturing

1993 2009 2013

…but it has retained its cost competitiveness

5

• India has maintained cost competitiveness over last decade

• However challenged by secondary factors

• Business Environment

• Ease of doing Business

• Infrastructure

• Logistics Performance

Source: Make in India : Turning Vision into Reality, BCG 2014

…and aiming to leapfrog in next few years with its core strengths

Advantages of India for manufacturing

• Increased Government's support with 'Make in India' initiative

• Strong base of engineering design capabilities

• World class IT knowledge base

• Great education system providing the required skillset for the industry

• Tremendous untapped market opportunity

• Capable eco-system of start-ups and MSME players

6

Manufacturing evolution over the years (Matured markets)

7

Manufacturing evolution over the years (India)

8

1950

Current

Opportunities for India with Industry 4.0

9

Though India is behind, there is an opportunity to cut short the path and support today’s customer and market demands1950

Current

NearFuture

Mfg companies need to embrace these technologies to serve the market opportunity

SmartHomes

SmartCities Smart

Infra

SmartFactory

SmartProducts

SmartLogistics

Cloud

Big Data

Mobile

3D Printing

Augmented Reality

Analytics

Internet ofThings

Internet ofServices

Internet ofPeople

Internet ofSystems

Outcomes

Technologies

Drivers

10

Summary - Key drivers

• Adopting Industry 4.0 approach is not a matter of choice for Indian manufacturers, it is a must to compete in the global market

• Manufacturing companies aim to shift from one time product sale to on-going revenue in terms of digital services throughout the product lifecycle

• Technologies like 3D Printing will revolutionize manufacturing. It will enable ‘Design anywhere and manufacture anywhere’

• In this new manufacturing era, workforce profile will be different. So, we need to start building those skills

11

THANK YOU

End of presentation.

12

Background

• Event : Bosch Smart Manufacturing Conclave, 2015;

• Venue : The St. Regis, Mumbai

• Date : 5th November, 9:30 to 6:00 PM

• Event Theme: Smart Manufacturing (Make “it smart” in India)

• Key Topics

• Industry 4.0

• Intelligent Factories

• Engineering Analytics

• Future workforce in Manufacturing

• Request to Mr. Godrej (Industry Chief Guest)

• Keynote to articulate powerful messages and visions of a smarter manufacturing environment to the Indian & Multinational Manufacturers in the country.

• Power speech for 15 minutes on How technologies in Manufacturing are propelling a new age of Manufacturing in India.

13