GGB is the world’s leading manufacturer of high-performance, self-lubricating and pre-lubricated bearings, with over 1,000 employees globally. Today, the company serves more than 50,000 customers worldwide in a broad spectrum of applications and industries, including automotive, pumps/compressors, agricultural equipment, recreational equipment and many more.
The world-renowned company made an entry into the Indian market in 2004 and has since introduced new products and solutions for the local market, developed a strong customer base by laying emphasis on total system costs and also successfully implemented various projects in different segments.
We find out from Mr. Mahesh Thangamani, India National Sales Manager, GGB Bearings, about the company’s nearly decade-long journey since inception and its plans for the future.
How has business been for GGB in India since your entry into the market?
GGB has served the Indian market since 2004 when we opened a sales office in New Delhi. We now have four sales offices specializing in the renewable energy, automotive, construction/agricultural equipment and hydraulic industries. Today we serve global customers with operations in India, as well as indigenous Indian companies. Our sales continue to increase each year, and we see a promising future for the Indian market.
Please give us an update on the new products developed in the last few years. Are you working on any new technologies at present?
Most recently we introduced three new products, GGB-CSM and GGB-CBM metallic bearings, plus FLASH-CLICK, the industry’s first dual-component, double-flanged solid polymer bearings. The GGB-CSM bearings are made of solid metal, and the bi-metal GGB-CBM bearings feature sliding layers sintered onto metallic backings. Both are self-lubricating for maintenance-free performance, and provide high load capacity, broad temperature range and corrosion resistance.
Applications cover areas like general mechanical engineering, steel plants, civil engineering, turbines, pumps and compressors, food and beverage equipment, packaging and handling equipment, tyre mould and construction and agricultural machinery, among others.
Our patented FLASH-CLICK bearings feature a special geometry for easy manual or automated installation without the need for pilot or assembly tools. Their two-piece construction facilitates installation from a different direction, and by allowing housing tolerances to be reduced, they reduce total system costs. The lightweight, corrosion-resistant bearings provide low friction and wear as well as noiseless operation, which, combined with their innovative design, make them ideal for replacing more costly bearings in many applications, such as automotive seats and convertible tops.
We are continually working on innovative bearing technologies, where our tribological expertise, state-of-the-art R&D facilities and advanced testing capabilities keep us on the leading edge. Our technical centers in the US, Germany and France develop new products and processes as well as test bearing materials, besides conducting fundamental studies and analyzing both our own and other manufacturers’ products.
A few years back, GGB had indicated its plan to manufacture locally in India. What about the status of that plan?
We currently have no production facilities in India, but maintain sales offices in Pune, Gurgaon, Chennai and Bangalore, and distributors in New Delhi and Mumbai. We plan to eventually manufacture locally, depending on how fast the market expands. For the foreseeable future, however, production at our 10 plants in Brazil, China, Germany, France, Slovakia and the US is sufficient to meet market demand.
GGB has been working closely with several OEMs in India offering specific solutions. Can you highlight some of the important projects that you have worked jointly with major Indian automotive OEMs for helping them solve their pain points?
Many such projects for GGB in India have been successful, while we have ongoing ones as well. The project mentioned below was a major breakthrough in technology change as well as setting new standards.
Successful implementation of self-lubricating bearings in mining trucks for the suspension system. Conventional bi-metal/bronze bearings replaced with GGB high performance SBC maintenance free bearings. The bearing has zero maintenance (grease-free), longer life and integrated seals for protection from dusty environment of the mining area. It is a great advantage for tough mining conditions where maintenance is extremely difficult and the vehicle operates continuously in a rough terrain.
What is your market share in the self-lubricating bearing segment? Are there any specific sub-segments in which you have market leadership?
I can’t provide specific data but am sure that GGB is the world’s leading manufacturer of self-lubricating and pre-lubricated bearings. In addition, we offer the industry’s most extensive range of high performance bearing materials, including metal-polymer, solid polymer, filament wound and mono- and bi-metal. We also offer aluminum alloy bushing blocks, as well as specialized housings and assemblies, including self-aligning housings for use with our metal-polymer bearings.
Key market segments for these products include automotive, where we have a particularly strong position with our bearings finding use in over different 30 applications. The others are aerospace, fluid power, compressors, construction and agricultural equipment, renewable energy, primary metals production and general industry.
What advantages does GGB offer its customers when compared to the other brands on the market?
GGB bearings provide a number of distinct advantages, including improved energy efficiency. Our low friction materials reduce power losses ensuring increased output and efficiency. In addition, the slim, compact design of our bearings provides substantial space and weight savings, as well as reduced material costs.
Because our bearings have no moving parts, they provide smoother operation, and their one-piece construction simplifies assembly, reducing costs and eliminating fitting damage. In many applications, our plain bearings can replace heavy, greased metal bearings for space and weight savings, reduced maintenance and environmental benefits. They also can be used to replace costly rolling element bearings where their greater contact area provides higher load capacity, shock loading resistance and improved performance.
Finally we offer comprehensive customer support. Our bearing specialists have the experience and expertise to provide innovative, cost-effective solutions to the most challenging applications.
With growing demand for better quality, safety and reliability of components, how has GGB’s global expertise helped bring new technology to the Indian market?
Our tribological expertise, sophisticated R&D facilities and advanced testing capabilities keep us and our global customers on the leading edge of high performance bearing technology.
Our technical centers in the US, Germany and France develop new products, processes and test bearing materials, conduct fundamental studies and analyze both our own and other manufacturers’ bearings.
To ensure success of the new products we employ a multi-disciplinary development process, involving manufacturing, engineering, quality assurance, health and safety, and marketing. The process proceeds through prototype development, verification, testing and validation, followed by a pre-launch inspection before market introduction.
As a global enterprise, we comply with important global standards, including the ISO 9001 for quality management systems and the ISO/TS 16949 international quality management specification for suppliers of automotive components. In addition, GGB North America is certified to the AS9100B standard for quality management for suppliers to the aerospace industry, and our plant at Heilbronn in Germany is certified to supply bearings for Rolls Royce jet engines. Also met are the requirements of ISO 14001 for environmental management, ISO 50001 for energy management and OSHAS 18001 for occupational health and safety.
India being a highly price-sensitive market, how has GGB been able to cater to the needs of local customers? What is your strategy to increase business in India in the medium to long term?
Price sensitivity is a major challenge which we are striving to meet by educating our customers to look beyond price to total system cost, including ongoing maintenance. GGB bearings not only reduce the system cost, but also the need for maintenance. Our greaseless GAR-MAX bearings, for example, eliminate the cost of greasing nipples, centralized lubrication systems and cross-drilling shafts.
We educate our customers on the performance and cost advantages of our bearings through exhibitions, seminars, presentations, advertising technical papers, etc. In addition, we leverage the success of our products in Europe and the Americas to the benefit of the Indian market. And we are winning the confidence of our customers by serving as a trusted advisor, providing reliable high performance solutions and by using our extensive product range and global presence to meet their demands.
Moving to the aftermarket, how have GGB products fared in the retail market? How about your sales, service and aftermarket network in the country?
We are predominantly an OEM supplier. In most cases the life of our bearings exceeds that of the sub-assemblies or equipment in which they are installed. Hence replacements take the form of assemblies, not discrete bearings. As a result there isn’t much of an aftermarket for our products.
Moving forward, how important is the Indian market for GGB? What was the turnover of your Indian operations in 2012? What targets have you set for the current year?
With its high growth rate, India represents one of GGB’s most important markets. Year over year, our business continues to grow rapidly across all segments, notably automotive, hydraulics, construction equipment and renewable energy. Despite slowdown in the first half of this year due to the automotive industry slump, we’re confident of hitting our targets with an expected improvement in sentiment in the second half.
With most of the global OEMs setting up operation in India and thanks to your relationship with these OEMs globally, do you see more opportunities to work with these OEMs in the Indian market too, and do you see this contributing to your business growth?
Yes, many of our OEM partners from overseas have started operating in India, and we support them, co-ordinating with our overseas colleagues. These global OEMs bring advanced technology and new products to India that require high-performance bearings, and provide an excellent growth opportunities for GGB.