This is what Mr. Pravin Malhotra, who handled production and processes at his father’s steel plants, did when he floated an auto component firm Nipman (amalgamation of the first three letters of his two sons Nipun and Manek) in 1997. Even though it was a tough decision to take as the automobile market was pretty nascent then, he decided to follow his heart and came out with flying colours within a decade of his company’s operations.
Mr. Pravin Malhotra, Managing Director, Nipman Fasteners, said in an exclusive interaction with MOTORINDIA: “In the 80s, I was working under the tutelage of my father the late R.P. Malhotra. I was an operational executive heading the plants in Mumbai and manning 1,000 people at Malhotra Steel Products. In 1995, I pursued my OPM at Harvard University. Over there, I studied how businesses must change. Professor Barners at Harvard University was a source of my inspiration and thereafter the entrepreneur bug hit me when I was 35. I realised that the domestic fasteners industry would be evergreen. I took up this step as ‘Lean manufacturing’ was always my forte. Moreover, I had a production background and also had a feeling that if I can do things right, it will sell. My strength is in the production process. So we bought a land at Ghaziabad (UP) and got my basic financing from Oriental Bank of Commerce (OBC). They were also keen to get into the auto comp business. As Hero Honda (now HMCL), our key client, saw an unprecedented demand for its products, our businesses also grew manifold. And thereafter, there was no looking back.”
It is to be mentioned here that Nipman Fastener Industries Pvt. Ltd., manufactures standard and special fasteners for the automotive and auto component industries ranging from M4 to M16, specialising in automotive studs and standard & special fasteners with plants at Ghaziabad, Manesar, Haridwar and Bawal using state-of-the-art manufacturing practices. The 17-year-old Nipman Fastener’s journey is a case study in itself. The homegrown firm, which was started with a seed capital of Rs. 50 lakhs, is now earning nearly Rs. 150 crores on an annual basis. Witnessing the double-digit growth on a YOY basis, the company would comfortably achieve a level of Rs. 650 crores in four-five years and Rs. 1,000 crores by 2022.
After gaining a strategic foothold in the two-wheeler and four-wheeler segments, Nipman is now also eyeing the CV segment. The company confident that as the market for commercial vehicles evolves with the growth in infrastructure, it will be able to ally itself with some domestic and multinational firms which have a manufacturing footprint in India. Plans are also afoot to make a foray into the aftermarket vertical in the next few years. However, the company has no immediate plans to get into the industrial segments with its fasteners.
“We have been participating in Fasteners Shows in Germany. Although we always wanted to be an OEM supplier, we are open to the aftermarket vertical, and as far as the CV segment is concerned, we would be ready to serve it as it will pick up in the future”, said Mr. Malhotra.
Nipman participated in Auto Expo 2014 and is planning to display its products at Automechanika 2015 in New Delhi. It has already been shipping out its products to Germany and will soon start exporting to countries in Latin America like Brazil.
Diversification
With its current business flourishing, the Nipman Group has identified two new business verticals/domains which are under formation as two separate business entities. Such diversification is not that intricate, especially when Mr. Nipun Malhotra, his elder son who is the Executive Director of the firm, assists him in adding more value to the company’s topline and bottomline.
Mr. Nipun Malhotra stated: “Our facilities include the finest machines for forging & rolling for fastener manufacturing. A process-based approach and lean manufacturing techniques are adopted at Nipman where every manufacturing process has been designed in a direct customer-supplier relationship. This first-rate workplace set-up ensures faster movement of intermediate products and boosts efficiency while also ensuring the same quality. We are a TS 16949-certified company and Total Quality Management [TQM] systems are practiced at all locations and processes of the company. Nipman’s way of life is to win in all spheres of its activity to give the best to all stakeholders, starting first with the customer”.
The New Delhi-based Nipman, which has lined up Rs. 250 crores for expanding its operations in a phased manner will be able to cater extensively to the CV segment with its new product lines. It is actively exploring the CV space with its new business domains. The new machines that it has invested in are capable of supplying to CVs.
Asked to spell out the vision for the company, Mr. Pravin Malhotra said: “Nipman’s philosophy is to ‘achieve best to give the best’ to its customers by deploying world class technology and best practices in all spheres of its business activity.”