Ravichandran Purushothaman (RP), President, Danfoss India shares about the major transformation and important game changers that would shape the manufacturing industry.
IE: Major changes through these years.
RP: The manufacturing sector has come a long way in the last two decades, particularly in driving sustainability for a competitive edge. To keep up with global standards, there has been a renewed focus and huge investments in state-of-the-art solutions like Industry 4.0, manufacturing execution systems and manufacturing operations management platforms that enhanced efficiency, traceability and quality control. By implementing automation, modularisation, simulation and upgrading machinery, the industry could optimise manufacturing processes, minimise waste and improve resource utilisation.
Lately, we have also been witnessing the trend of integrating sustainability principles into new product development and innovation. Through a regional supply chain approach, the industry has also supported local economies, fostered closer relationships with suppliers and minimised environmental footprints. Advent of digital supply chain ecosystems has made collaboration, performance tracking and procure-to-pay processes more efficient. Artificial Intelligence, machine learning, robotics and other emerging technologies are playing a crucial role in driving the manufacturing industry’s transformation. In today’s digital era, these technologies have been successfully scaled up to enable end-to-end supply chain transformation, enhance daily operations and foster organisational innovation and automation, ultimately leading to customer satisfaction.
India’s economic growth has put it among the three biggest CO2 emitters, behind only China and the United States. As an emerging economy, we have a great opportunity to meet development goals with minimal energy consumption. Energy efficiency, termed ‘the first fuel’ by the International Energy Agency, will play a pivotal role in determining an optimal energy portfolio for India.
IE: Milestones that will transform the sector.
RP: Government of India is aiming for strong growth to achieve its aim of a USD 5 trillion economy by 2025. Its goals include increasing the manufacturing share of GDP to 25 per cent by 2025. India is well on its way to becoming the most sought-after manufacturing destination in the world and has the potential to export goods worth USD 1 trillion by 2030.
The rapid development and industrialisation is inherently emission-intensive and the path to Net Zero Emission (NZE) is being addressed through technologies, practices and behaviours. By 2025, the actions to cut energy intensity, increasing the share of renewables and curtailing emissions will get stabilised as per the Panchamrit mission. Indian manufacturing will witness mass deployment of clean technologies and energies, support for energy-efficient and low-carbon choices.
The effective use of time, energy and resources ensure sustainability in business operations. The technology will evolve by 2025 and there will be a deployment of AI, ML, cloud computing, IoT, 5G and Metaverse which will boost output and efficiency in the manufacturing sector. With impetus on developing industrial corridors, metros, new airports, high-speed trains and smart cities, India will witness unprecedented growth in the manufacturing sector in this decade, from 2025.
IE: What will be a game changer in the years ahead?
RP: One potential gamechanger in the engineering and manufacturing sector that caters to energy efficiency is the widespread adoption of Industry 4.0 technologies and IoT for smart manufacturing. The integration of digital technologies, automation, data analytics and connectivity will set a new revolution. When applied to energy efficiency, Industry 4.0 can have a transformative impact in several ways:
Smart energy management: IoT sensors and data analytics can monitor energy consumption in real-time, identify patterns, inefficiencies, and opportunities for optimisation. Manufacturers can make data-driven decisions to improve overall efficiency.
Predictive maintenance: IoT-enabled predictive maintenance systems can anticipate equipment failures and schedule maintenance before energy-intensive breakdowns occur. This reduces downtime, increases equipment lifespan and prevents energy wastage.
Energy-aware production: Smart manufacturing processes can dynamically adjust production based on energy availability and cost. This can involve shifting energy-intensive operations to times when renewable energy sources are abundant or when energy costs are lower.
Energy-efficient design: CAD and simulation tools can optimise product and process design. Digital simulations can help identify ways to minimise energy consumption while maintaining product quality.
Supply chain optimisation: Data analytics can be used to optimise supply chains, reducing energy-intensive transportation and logistics processes. Real-time tracking and optimisation can lead to more efficient resource utilisation.
Renewable energy integration and monitoring: Smart manufacturing can enable better integration of renewable energy sources, such as solar panels and wind turbines, into the production process. Excess energy can be stored or used to power other operations. Energy-efficient microgrids within manufacturing facilities can distribute and manage energy more efficiently.
Robotics and automation: Robotics and automation technologies can be programmed to optimise energy consumption, reducing wasteful movements and idle times.
The integration of Industry 4.0 technologies for energy efficiency requires investment in IoT sensors, data analytics platforms, connectivity infrastructure and workforce training. However, the potential benefits in terms of reduced energy costs, improved sustainability and enhanced competitiveness can be substantial, making it a potential game-changer in the engineering and manufacturing sector.
IE: How does India compare with global peers and how are we equipped to ride the growth wave?
RP: India’s commitment to advancing energy efficiency is evident through ground-breaking initiatives like the G20 Strategic Plan and accelerating energy efficiency across all demand sectors by 2030. The government’s five-point action plan for net zero by 2070 further drives decarbonisation innovation.
It can also be noted that the latest Green Strategic Partnership between India and Denmark holds the promise of propelling engineering and manufacturing sector to new heights in energy efficiency. Having its focus on technology transfer, capacity building, research and development and policy support, the partnership can go on to further equip India with advanced solutions, especially in renewable energy and sustainable manufacturing.
IE: Your current operations and plans ahead.
RP: Danfoss India is in the 25th year of its establishment in India. Our journey has been extraordinary so far and the 2022 topline makes us confident about our future growth. Our technology and expertise makes us a trusted and reliable partner, serving the energy efficiency needs of businesses across sectors. To tap the new opportunities, we have hired over 1400 people in the technical domain during and after the pandemic to raise the headcount to around 3500+. We are geared up to take a quantum leap, as far as Indian operations goes.
On our future roadmap, to achieve growth, we aim to be present in 80 cities of India in the next two years and to enhance localisation of products, which is currently over 50 per cent based on product range. The third area will be to tap new business segments that are emerging from decarbonisation mission. As India starts to put a lot more focus on PLI schemes, infrastructure, healthcare, metro projects, high-speed trains, food supply chain, data centres, etc. there will be lot of new hotspots for strong growth.
Sustainability is at the core of everything we do. We want to be a preferred decarbonisation partner and to enable the same in an intelligent, cost optimal manner and ensure carbon neutrality in our own operations. Our goal is to further growth through greater impact by integrating our new ESG ambition into everything we do. We are intentionally integrating equity and inclusion across the entire employee experience.
