Axalta Coating Systems, a leading global supplier of liquid and powder coatings, opened its expanded Technology Center Savli in Vadodara in Gujarat. The technology investment demonstrates Axalta’s commitment to delivering innovative coating solutions in India, a strategic market in Asia-Pacific.
The Technology Center includes an automotive coatings development laboratory and color laboratory. The automotive coatings development laboratory will focus on developing special paint formulations to ensure superior color match, aesthetics and quality. The new laboratory space will feature contemporary robotic spray applicators that can precisely replicate line application conditions inside customer manufacturing plants. The equipment is designed to facilitate the development, approval, quality control, and customer line support required by auto-OEM customers. Additional capabilities at the facility also include color measurement tools and accelerated paint testing equipment.
“Technology plays a crucial role in driving our business as well as serving our customers,” explained Dr. Barry Snyder, Axalta’s Senior Vice President and Chief Technology Officer, at the opening ceremony. “This Technology Center is part of a global network of technology facilities that are designed to develop tailored solutions to meet local customer needs.”
Axalta’s business in India serves customers in the transportation OEM, refinish and industrial sectors. According to the World Bank, India’s economy overall is projected to grow by 7.2 per cent in the current fiscal year, up from 6.8 per cent in 2016. The auto industry has started to show strong growth with a CAGR of approximately 7 per cent over the next five years. In line with car sales, the local car parc is also expected to grow and lead to increased demand for Axalta’s refinish products with leading brands such as Cromax, Standox, Duxone, Lucite, and Nason.
Mr. Vinay Rajadhyaksha, Managing Director Axalta Coating Systems India Pvt. Ltd., added: “At Axalta, we monitor automotive trends and forecast how color preferences are changing in the automotive market. I am pleased that we can now offer innovative coating solutions directly to our customers. We’re confident that with this new state-of-the-art technology center, we will be able to meet the paint & coatings requirements of all our customers in India.”
Axalta established its India business in 1996, and today operates a manufacturing plant in Vadodara within the state of Gujarat along with offices & regional training centers in Gurugram, Mumbai, Kolkata, Bengaluru and Vadodara.
In an exclusive interaction with MOTORINDIA, Dr. Barry Snyder, Senior Vice President and Chief Technology Officer, Axalta Coatings Systems, and Mr. Sobers Sethi, President, Emerging Markets, Axalta Coating Systems, share their thoughts on the new Technology Centre and Axalta’s future business plans for the Indian market.
Excerpts:
What is the purpose behind Axalta’s new Technology Center Savli in India? What long-term advantages would the move give your business in the Indian market?
Barry Snyder (BS): The Technology Center has been established with the intention of not only growing our business, but also supporting our customers’ success. The Technology Center is designed to put our customers first and enable them to maintain a competitive edge and achieve success in this market. It joins a global network of laboratories. We bring technical capabilities close to our customers with highly capable staff locally who can leverage tools from around the world. This means we can engage and deeply understand local needs, respond quickly and assure that we bring best-in-class solutions.
The Indian technology center contains a new automotive coatings development laboratory and a state-of-the-art color laboratory. The new facility features modern equipment that will help us to develop and test our products according to the specifications of our customers. The automotive coatings development laboratory will enable development of special paint formulations to ensure superior color match, aesthetics and quality. The new laboratory space will feature contemporary robotic spray applicators that can simulate the line application conditions inside our customer manufacturing plants. The equipment is designed to facilitate the development, approval, quality control, and customer line support required by auto-OEM customers. Additional new capabilities at the facility include color measurement tools and accelerated paint testing equipment.
Axalta has been present primarily in the refinish business in India and the new Technology Center Savli is a strategic move to drive your OEM-authorized business. Why do you think OEMs in the Indian market should partner with you?
BS: Axalta is a global leader in the coatings industry with more than 150 years of innovation and development. In India, we have been doing business since 1996 and have served many major vehicle manufacturers, refinish, and industrial customers.
Around the world Axalta partners with global and regional OEMs to deliver solutions that meet their performance, applications and environmental needs. With this new center we create the opportunity for local OEMs to tap into this experience and capability, while working with technical staff who understand their needs and can quickly adapt solutions in the laboratory and bring them to market rapidly.
Technology investment accelerates development of innovative products. Technology creates competitive advantages and differentiation for Axalta and its customers:
* On average, Axalta directs about 4 per cent of sales toward technology development, which totaled more than $180 million during 2016.
* Axalta’s four regional technology centers and R&D organization have developed innovative products that serve customers within local markets and meet specific customer demands.
The technology center is designed to enable our customers’ long-term success through the development of special paint formulations to ensure superior color match, aesthetics and quality.
With a global database of 4 million colors, Axalta’s color formulas enable OEM or commercial vehicle manufacturers to brand their vehicles with unique, sophisticated, and beautiful colors, while benefiting from durable, protective and sustainable coatings.
Globally, Axalta is a leader in vehicle coatings with a large customer base. Since many of your global customers are already present in India, would that give you a head-start on the OEM side in the domestic market here?
Sobers Sethi (SS): Yes, globally we have a strong presence in the transportation and performance coating segments and we can leverage the same technology and product approvals in India.
Which are the vehicle segments you intend to serve on the OEM side once your Technical Center is functional? If you would be targeting all segments, which are ones that would come on top in terms of priority?
SS: We are the market leader in the premium refinish segment and fully built bus segment in India. With the new laboratory, we will be able to better serve global and local light vehicle and commercial vehicle segments.
What were the major developments and achievements of Axalta’s business in India during 2016? How has the first half of 2017 been and how do you see the rest of the year unfolding?
SS: In 2016, we have developed and launched many new products in the Indian market in order to provide customers with beautiful and durable coatings. We have converted many body shops to the latest generation water based technology – Cromax Pro – which has been well received by leading auto manufacturers. Our products introduced into the market have benefited our customers in terms of productivity improvement and energy saving.
The first half of 2017 has been on track. Our focus is on growth and we have been growing in double digits. We expect a strong second half with demand from the exhibit season helping us to further grow our volumes.
Looking beyond the new color lab development, what are your plans for the Indian market until 2020? What position do you wish to achieve in terms of market/ segment coverage, geographical reach, sales turnover, etc.?
SS: In addition to the technology center, we are also expanding our manufacturing capabilities to double our production volumes. The new set-up can manufacture the latest generation waterborne coatings which can be introduced into the Indian market in the near future. We are also working on innovative products which will help our customers to improve productivity, save energy and meet environmental sustainability initiatives with low VOC emission formulations.