Symbiosis Institute of Management Studies

BUSINESS ENVIRONMENT
India 2020
Chapter 7

Submitted to Mr. K.G Awale

Submitted by
Anand Bhushan Tiwari(A-43) Archana Pandurangi(A-9) Aniruddha Bagool(A-46) Ankita Bhawsinka(A-8) Angad Bhalla(A-44) Anil Daniel Josy(A-45)

The presence of traditional Indian skills in medicine, metallurgy, construction, textiles, hydraulics or early shipbuilding was an integral part of our innovativeness in ancient and medieval times. India was renowned for her prowess in skills as diverse as surgery and muslin weaving. We were advanced in the use of fire and in metallurgy. Still, the invention of machines that generate their own locomotive power by burning external fuels eluded medieval India. India was a latecomer in learning the new manufacturing techniques invented in Europe. It was only in the late nineteenth and the first half of the twentieth century that India established a few sugar factories, steel and textile mills and began to think in terms of ambitious projects like shipbuilding and aircraft and automobile manufacture.

THE MODERN FACE OF MANUFACTURING

Mankind has seen rapid transformation in the last 150 years because of the mass manufacturing techniques perfected in western nations and later taken to new levels of efficiency by Japan. Mass production and production for the masses became the bases of new business strategies. Large-scale consumption by all with the social benefit of removing poverty became the dominant economic strategy. The advent of electricity and its large scale application to lighting, heating and operating machines added a fresh dimension to manufacturing. By the 1950s came inventions in electronics and transistor devices to be followed by innovations in microelectronics, computers and various forms of sensors, all of which irreversibly altered the manufacturing scene. It is now no longer necessary to make prototypes in a factory or a laboratory to study a new product. Many new products can be designed on computers, and their behaviour simulated on them. By choosing an optimum design through such simulations, computer programmes can directly drive the manufacturing processes. These processes are generally called Computer Aided Design (CAD) and Computer Assisted Manufacturing (CAM). These capabilities are leading to newer forms of demands by customers. Each customer can be offered several special options. Customized product design or flexible manufacturing are other popular techniques currently in vogue in many developed countries. The tools used in manufacturing today have multiplied greatly: lasers and water-jets are in increasing use. It is no longer specialized steels or even ceramics which monopolize the cutting tool industry. Its hard to believe that lasers can be used to cut heavy steel plates are also for delicate eye surgery. Water pumped at high pressures and focused as a jet cuts cleanly. To digress, anything focused, and focused sharply, becomes a good cutting edge or a welding source. A laser is a focused and coherent source of light. A water-jet is a sharply directed high pressure jet. If we also, as a country and as a people, focus our efforts to eradicate poverty and to develop in a sustained manner, we dont think any obstacle could withstand the force of that collective, coherent, and focused will! According to the TIFAC Task Forces on Technology Vision 2020, India stands to gain enormously by the coupling of computers and the manufacturing process. Here we have many success stories, albeit small compared to the potential, which encourage us to share this vision. First and foremost is the fact that India is being looked at as a source of software the world over. Bangalore has become synonymous with the software prowess of India. Now Hyderabad is also being called Cyberabad to symbolize its emergence as a software and information technology city. In fact, it is not only these two cities but all of India which contributes to software export. The fullest credit goes to the many youngsters from Indian schools and colleges. To earn a livelihood, they have adapted their skills to suit the demands that have arisen, and performed splendidly. The real issue before us is how to draw out the great potential of our

people, their ability to work hard, and their motivation to learn more in order to excel. We will address this aspect elsewhere too. Indians have to be triggered by a vision, a supportive environment and some personal benefits to them and to their families. Many of those who left the country in the past fifty years were motivated by these requirements. When our own country did not offer a challenge or an opportunity for a better life, they sought it elsewhere. There are some in our country who casually dismiss it as mere data entry strength. This is taking a very narrow view of things. No big economy can survive only with activities which demand highly intellectual inputs. The economies of America, Germany, Japan or China will bear this out. But, in the long term, there is one element which should make us feel concerned. Can this boom of software export and application last for decades, merely based on software developed in other advanced countries which is operated by our people, as application support personnel, data analysts and market developers? Also, as it happens nowadays those who create the original design very often reap most of the benefits, due to the nature of technology and often because of various forms of protectiontrade contracts or intellectual property rights. Microsofts success is a classic example of these trends. Microsoft has world rights to many software packages. Therefore, there is a definite need for India not only to derive benefits from the present software boom and demands, but also to prepare itself for the higher end of the market. India should dream of becoming a software business bidder in a decade. What is the nature of this higher end software? Here we may quote from the Report of the National Critical Technologies Panel, USA in March 1991.Software is the basic of countless applications in information handling, manufacturing, communications, health care, defence and in research and development, increasingly. The development of advanced software is an important limiting factor in the introduction and reliability of new military and commercial system. Software requirements, expand at a dramatic pace as automated systems proliferate and increase in sophistication. Despite these growing demands, the generation of advanced software programmes remains largely a painstaking, labour-intensive market. As a result, the ability of US industry to provide high quality, reliable software is in jeopardy. In 1990, a minor programming flaw resulted in a nine-hour shutdown of the major US long distance telephone network . Advanced software therefore poses a paradox: a fundamental source of technological progress, it is also going to be a growing source of technological vulnerability. It is this labour-intensive phase in software which has created an immense opportunity for India. But advanced economies would not like to live with a vulnerable prosperity the US report quoted above describes many efforts required as well as those under way to resolve these problems. The essence of software is in its design. Software requires no extensive fabrication or assembly. However, it is frequently difficult for the programmes to anticipate all of the circumstances that may arise when the programmes is executed. Innovative concepts being developed are software-based design tools as well as new management concepts for software design development. The report concludes that these new approaches have strong potential to transform software development from labour-intensive craft to more highly automated production process. With such advances, the writing of the software can give way to the manufacturing of software. Thus, one can see that not only has the face of manufacturing physical products changed beyond recognition, but the computer software which has made this revolution possible is itself in the process of radical revolution.

TECHNOLOGY VISION FOR SOFTWARE

India needs to work towards capturing market share of software for manufacturing, healthcare and other applications. Indian software have found applications in Europe and USA for applications in airports, manufacturing, academics etc all to be integrated in value added packages. By encouraging entrepreneurship the projected software exports of approx $38 billion by 2008 can be easily surpassed. According to experts by 2020 India will be proficient to capture 10-15 % or word market share for upper end manufacturing software and dominating the software supply in developing countries of the world thereby adding to the preexisting low end software business. It is estimated that by 2020 language barriers for software will decrease and 30 % of the total employed population would be using different software. In the manufacturing sector a few companies dominate the show due to strong organizations and superior technological base. Since all the consumer requirements of software, design practices, application development etc cant be met by these global giants they need to align with Indias manufacturing sector to produce value added software and designs for them. In return Indian industry will be able to meet quality and time schedule requirements and benefit by acquiring most modern manufacturing equipment and practices in turn giving a boost to the overall economic growth as all sectors will benefit from these new capabilities. Despite the import of technology Indian engineering sectors may be able to manufacture sophisticated and automated systems and acquire a leadership position in advanced machine systems. There is a need for concerted efforts of research labs, designers, consultants, marketers and their management which requires skills, capabilities and commitment.

Engineering Industries:
Vision report for engineering industries is as follows: By 2000-05, Indian industries will go in for flexible manufacturing systems (FMS), artificial intelligence (AI) applications, processing using laser, water jet, etc., cold forming / extrusion, near net shape manufacturing, high speed machining , intelligent manufacturing using sensors, continuous forming, reduced setup times virtual reality applications and hard machining. Boiler designs for many alternate fuels will be available by 2005. Fluidized bed combustion technology will be in wide use by 2000-05. By 2000-05, technological upgradation covering materials design, manufacturing, quality, reliability, packaging, marketing and servicing will take place. These will

include computer Aided Design (CAD), computer Aided Manufacturing (CAM), FMS, ISO9000, ISO 14000, R&D in new materials, modular design, casting, and forging, mechatronics, precision manufacturing and automation. Design and development of high precision machine tools, high speed spindles, linear motor slides, diamond truing machines, etc. will also come up. India will become a net exporter of technologies by 2010. Software development for processes and systems will take place. By 2010, 60 per cent of the machine tools produced will be computer and numerically controlled (CNC). By 2020, 80 per cent of the machine tools produced will be CNC. By 2020 India will be a leading producer of quality castings and forgings and will be a large exporter of these items. India will be self-sufficient in advanced machine tools and boilers using state-of-the-art technologies. Exports of these items will progressively increase. Employment generation will be on the rise. The select areas of strength are automobile parts, casting, forging and CNC machine tools.

The required actions to realize this vision are to be carried out urgently. They are as follows: Gradation of processes CAM, robotics, welding, near net shape manufacturing, quality, delivery and cost, and state of the art technology adoption. Improving the supplier base for components and subassemblies as well as evolving modular designs Flexible manufacturing and agile systems are crucial. In the forging sector we need to develop better tooling capabilities CAD, adopt cold forging and near net shape technologies and resort to mechanization and automation with large volume production. In the foundry sector, the increased accent has to be on control of dimension / surface finish, value addition through machined casting, forging and machined and automation with increased scale of production. In boiler and pressure vessels manufacture, urgent action is required for the upgradation of welding systems, automation in welding, use of robotics for improvement in radiography, controls, reliability and safety. Further advanced boiler technologies that are required to be mastered are development of fluidized bed technologies, once through boiler designs, improvement of boiler tubes, thermal efficiencies and design for alternate fuels. Advanced manufacturing technologies would crucially depend upon improved manufacturing capabilities. Considerable investment in research and development will be required for this purpose. Areas requiring Research and Development investment are fundamental research in machining including micromachining, development of advanced automation systems including software, development of robotics, mechatronic development, development of measuring and testing equipment for quality and reliability as well as, development of proper standards. All this will require all round upgradation of skills and their continuous enhancement.

The workforce at all levels has to be readied for mechatronics through multi-skill training. Most of the updated curricula in it is polytechnics and engineering colleges will require drastic revision and their facilities will need to be modernized. In the transitional period, innovative teaching methods for the advanced facilities existing in industries and national laboratories have to be adopted.

Vision for textile machinery

The textiles sector is crucial for India to meet its domestic needs and more important to provide the major share of its export earnings. While there are a number of strengths in this area, there are also several technologies weaknesses. For example, we depend upon imported machinery for quality production. The TIFAC Task Force teams which have looked at these aspects in totality are confident that India can be a leading textile producing country and become a top player in the global market. This is how they envision the steps (assuming that corresponding action is taken well in advance): By 2000, technology upgradation, productivity improvement, energy conservation and environmental protection aspects and quality improvement will take place. This will include use of: CAD/CAM Robotics Doffing and high speed 138 ring frames electronic instrumentation and computerized automation Airjet looms Spinning and preparatory auto leveler cards and draw frames. Agricultural research will result in better cotton yield. Organic cotton and coloured cotton will be available. There will be a reduction in the cost of hank yarn, use of cone yarn, production of industrial filter fabrics, medical textiles and use of micro fibres. By 2010 eco-friendly textile exports and domestic use will start. Production of geo and technical textiles will begin in a major way. Machinery modernization will be achieved and there will be development of advanced machines with electronic controls. New weft insertion techniques and a continuous rotating system for weaving will be developed. Hightech knitting technologies, multiface weaving, meltspinning of microfilament yarn, ecofriendly processing, improvement in indoor air quality and recycling of waste will all be done.

 Fibre inputs like jute, linen, polyester, acrylics and polypropylene will find a place in yarn manufacture. Largescale units with assembly line plants will diversify into high value garments, jackets, industrial wear and sports wear integrated textile mills will enter garment manufacture by 201020. Employment of women will be on the increase, especially in garment making. Figure 7.2 attempts to capture these details in a simple form with the left hand Side presenting highlights of the current status, the right side being the vision for 2020, and the centre portion highlighting core technologies to be mastered.

Vision for the electrical machines industry

This industry is poised for a quantum jump with excellent growth opportunities. Multinational corporations are likely to base their manufacturing units in India. R&D focus will be on : materials electromagnetics mechanical engineering manufacture thermal engineering power electronics.

By 2000 CAD/CAM and automated production lines will be by Indian companies. Maintenance free machines will be produced in India. Direct torque control technology, automatic winding, use of CRGO /CRNGO sheet steels will all be available. Inputs for production will undergo a change. Aluminium foil will replace wires. Use of new materials like samarium, ferrite and laseretched magnetic material sheets and use of polyesteramide and polyamide as alternative enamel will be on the increase. By 2010 designs for better heat dissipation, better bearing design and development of 11 KVHT motors will be prevalent. Large-scale flexible manufacturing facilities will come up Better magnetic materials, insulation and high current density Conductors will be used. By 2015-20 development of power conditioned motors will be taken up and organic conductors will replace metallic conductors. Applications of superconductivity, linear motors and single-chip controller will be widely available.

Vision for the manufacture of transport equipment

Commercial vehicles will have a higher power to weight ratio and two wheelers will use four stroke engines with electronic controls. More diesel engines with direct injection and electronic control will come up. Indian industry will become one of the preferred suppliers to world markets. It is essential that the new vehicles are eco-friendly. India will thus follow the world trend in transport equipment with a reduced time lag.

Anything uniquely Indian?

Looking at the developments in the various sectors, we may ask whether they are uniquely Indian or whether India is merely adapting itself faster than in the past. It is essential that the country develops well, that the well being of her people is taken care of, and its security needs are met, but the most important tasks are to remove poverty altogether from our midst, and provide considerable social and economic opportunities to all Indians and also provide for the security of their quality of life. In real terms, aspects other than these are of secondary importance. Although, geo-politics and other geo-commercial realities dictate that we achieve these by ourselves, or by means of technology & trade partnerships with other countries, Indians with an intellectual bent of mind aspire to find something unique. They wonder why India has not done anything exceptional and just merely followed the trends of the developed world. Aspirations such as these propel a nation in the long run. In the ancient past, India had had many unique inventions and discoveries which have had a great impact on human thought and civilization. These had been in diverse fields of philosophy, art, trade, statecraft and technological artifacts. However, India cant boast of many such examples of the recent past. During the five decades after independence we had so many major problems to solve. Looking back, we realize that we didnt have the type of resolve that is required to wipe out the centuries of stagnation and emerge as a vibrant society. We have let go many opportunities presented by technology, trade and business. Missed opportunities do not usually recur in the same form. In a competitive world, there are others waiting to seize these opportunities. Much more than the blows to national pride or that of the intellectuals, the worst outcome of such missed opportunities is the loss to the nation. Slow economic growth has hit the poor the most.

Our utmost attention during the next quarter century should be to attend to these problems of growth and removal of poverty. To do this, we would be required to change to many things from the world, and yet prepare ourselves for future creative adventures. In the agriculture sector, for instance, the Green Revolution was based on research done elsewhere in the world. It was later adapted to Indian conditions. The way the farmers adapted these techniques is remarkable. In the coming years, India faces the challenge of having to find her own solution for higher yields. There are possibilities of unique applications of biotechnology or newer forms of agricultural management providing examples of ecologically sustainable practices. In the chemical sector by and large, we need to adapt newer inventions made elsewhere speedily and also produce our own innovations. There are immense possibilities for Indian contributions in specific areas of the chemicals sector: catalytic sciences and their applications, new clean chemical processes, and new inventions for medicinal applications. In the field of natural products, given Indias rich biodiversity and immense base of ancient knowledge, we may be able to make several contributions. Further, being a virgin area worldwide, the success rate for Indias efforts is likely to be very high. In the manufacturing sector our uniqueness can manifest itself in terms of applications. For instance, consider the applications of advanced software in manufacturing, and you would realise that some modules or approaches may emerge with a novel thrust and take India on the world scene. In the pursuit of all-round economic growth, the physical and social wellbeing of all our people and national security, we will need to create an enabling environment and try something uniquely Indian. Such an inventive spirit will be useful for the long-term sustainability of our grains.