Coimbatore-based Shanthi Gears Ltd., now a part of the Rs.29,000 Crore Murugappa Group, one of the leading industrial houses in India. The company with a long history of manufacturing high quality, high precision gears, gearboxes, geared motors and gear assemblies, offering customized products and solutions for traction, cement, power, mining, aerospace, defence and other core sectors of the economy. The company, on the threshold of its Golden Jubilee, is strategizing its growth plans to double its turnover in the next three years. Mr. Rajiv Moorthy, the effervescent CEO unfolds some of the strategies aimed at achieving a sustainable, profitable growth of the company in a one-one with Mr. P.K. Balasubbramaniian of Machine Tools World. Excerpts:
We have a long history of 47 years, manufacturing high quality, high precision gears, gearboxes, geared motors and gear assemblies for a plethora of applications. The management teams between the two companies saw synergy through this acquisition. For the Murugappa Group it was a gateway to increase presence and tap opportunities in the engineering sector,foray into niche applications such as aerospace / defense and also increase presence in the non auto segment. The team at Shanthi clearly understood the culture, ethos and the corporate governance standards of the Murugappa Group before a decision was made. Tube Investments being in power transmission cemented the need to come together.
At SGL we manufacture helical, spur and worm gears, gearboxes, gear couplings and geared motors. We have a diversified range and going forward we will focus on high precision and high speed power transmission.
Q. How big is the gear industry worldwide and where does Shanthi Gears figure in?
The size of the gear industry worldwide is US $170 billion. Of this, 70% is automobile and 30% industrial.  The size of the Indian market in terms of value is close to Rs.10000 crores. In this, the share of industrial gears is of the order of Rs.3000 crores. This also suggests the potential for growth. Almost 65% of our business comes from custom built products and the balance from our standard offerings. With infrastructure poised for growth we expect to see a lot of traction in associated industries.
Q. You seem to thrive on home grown technology. What are the technological innovations you have showcased in recent years?
Indigenous technology has helped our growth thus far. Tremendous knowledge has been acquired and built over the years, through our people. We have received prestigious orders from Defense and customers continue to repose faith in our capabilities.
We are AS-9100C certified which qualifies us to supply components to the aerospace industry.  We keep ourselves abreast of advancements in process and technology and capital plans for the next three years include investments in next generation equipment. In-house capabilities and competency enhancements are priority areas and we have a structured plan to bring out these through strategic alliances.
Q. Could you give some idea of your infrastructural facilities and wherewithal?
We have the largest integrated manufacturing capability in India with latest machinery. Our ability to design, build and service gives us the added advantage to be considered as a partner to our customers. Our customers believe that we maintain high standards across various stages of our supply chain. The foundry, forging, and gear manufacturing line are well supported by a heat treatment facility.
Q. What are your core strengths and competencies?
Superior design and engineering capability, best- in-class vendor base and process discipline have been core ingredients for SGL to be recognized as a ‘reliable’ partner. Our vast knowledge and experience in gear manufacturing is acknowledged and we are known in the industry as an organization which can provide ‘bespoke solutions’. As the old Indian adage goes, we believe that the fundamental principle of any economic activity is that no man you transact will lose, then you shall not. This is the Murugappa philosophy of doing business. With an involved and supportive Board, motivated team it is time we convert market opportunities to business.
Q. You seem to thrive on import substitution. What are your recent achievements? Do you have any firsts?
Our recent achievements include product development for gear boxes in critical applications such as drives for merchant mills, raw material conveying, molten material transportation as well as gear components for various defense and aerospace applications. We have been working on developing gearing solutions for gas turbines and hydel power generation and our customers are happy with our offering.
Customers prefer to work with us in areas of heavy duty gearing and we do have a lot of firsts to our credit in this arena.
Q. What are the challenges involved in offering customized solutions?
We first understand the customers’ exacting and implied needs to provide enduring solutions. Validation with regard to design, engineering and manufacturing needs tools, knowledge, expertise and know why. Our endeavor is to raise our own bar with regard to principles of First Time Right. Sometimes the biggest challenge is to make our prospects realize the importance of life cycle cost and not just at unit price.
Q. How do you identify the customer’s pain points and redress them?
Our very approach to the customer is to solve their problems, to offer them a product which is superior in design and quality, and to give them value for the money spent. We take care of the entire chain – correct design, the best quality, the right price, delivery and after-sales support. There is surely a scope for improvement in all the areas mentioned.
Q. How do you educate your customer on the right selection and use of gears and gearboxes?
Knowledge and experience are required to educate and guide a discerning customer. At Shanthi Gears, we always guide the customer in the right selection of the product that meets his exacting requirement. We do not sell products, we provide solutions through our capabilities.
We have a strong team of 12 Engineers at our R & D Center which is equipped with the latest software tools. Our R & D team is constantly working on product innovation and providing support to our Engineering Dept. We have a brigade of 45 Design Engineers who design products as per applications and life expectancy. Our reservoir of knowledge and resources are nurtured to help and enlighten our customer.
Q. How do you make your products more rugged and at the same time more energy efficient?
We constantly improve our design and harness contemporary technology so that our products are robust and energy efficient. We have the talent within to imbibe the latest technology.
Q. Could you give some idea of your customer base and spread? Is Export a thrust area for you? Â
We have a vast customer base spread across sectors like steel, cement, power, railways, defence and so on. The contribution of export to our turnover is marginal today. In the days to come, we will focus more to build products and solutions for the overseas markets.
Q. How do you plan to enhance your visibility and presence in the global market?
We understand the importance and we are working on an approach in this area. We have launched customer connect programs recently and we have received good inputs and feedback for improvements. We will focus on going digital in many areas to make the process of gaining access a more pleasurable, friendly and easy one. We need to leverage on strengths and be clear of our ‘where to play and how to win’.
