The trio of Paramjit Chadha, Managing Director, Knorr-Bremse India (KBI), Thomas Lippert, Board Member, Asia Pacific, Knorr-Bremse and Arun Bisht, Head – Sales and Marketing, KBI, share their views with N. Balasubramanian on how the company has handled the BS-VI transition, the challenges and opportunities involved and their outlook for the rest of 2021
BS-VI Transition Experience
Paramjit Chadha (PC): The BS-VI changeover was challenging owing to the pandemic. Many factors such as migration of workforce to safeguard themselves from the pandemic, zero schedules in April and May 2020 due to countrywide and global lockdown and coping with new unforeseen pandemic situation created a roller-coaster ride. Our company took a judicious call with respect to blue-collared manpower where we retained the skilled manpower based on merit and provided necessary support during the lockdown including their stay and food. With this approach we were able to restart our operations in June with limited manpower and gradually increase the production following all government notifications.
Thomas Lippert (TL): In the BS-VI era with regulation changes and dynamic scenarios, Knorr-Bremse had a steep ramp-up both in demand as well as share of business across domestic customers. The strengthened foothold at domestic OEs resulted in achieving higher content per trucks for Knorr-Bremse CVS India.
Challenges
Arun Bisht (AB): In terms of the transition experience, there was very quick gain with BS-VI relevant products where KB has globally acquired a technological product company for exhaust throttle valve called GT Emissions in Europe. This product is now being fitted across every CV engine manufacturer.
PC: Quick step-up action and protocol were carried out step by step. The key challenges were retaining the blue-collar workforce which was more realised with relaxation in the lockdown. Containing the spread of the corona virus was the second challenge. Apart from this, the major task was to maintain social distancing which was a new normal for everyone. These challenges were overcome by regular communication with the workforce, constant counselling and providing necessary support to sustain these new challenges. Additionally, arranging imported components during the pandemic was a big challenge with restricted logistics. Trained manpower was a challenge not just for Knorr-Bremse alone but across our supplier partners’ supply chain as well.
Opportunities
AB: With the BS-VI era, KBI took this change as an opportunity and offered many new feature-based products which enhance not just vehicle performance but as well the safety. This supported in gaining significant share at CV manufacturers. Furthermore, concepts of modularization and localised value addition were introduced across heavily to finally drive the advantage for CV OEs and end customers.
TL: The successful development of our Indian supply base even during the difficult period of the pandemic has provided an opportunity to become an exporter of locally manufactured products. Our company has taken a key decision and identified key components which can be exported and accordingly taken the decision to encash this opportunity. Additionally, the support extended to domestic customers during the pandemic which was highly appreciated by our customers.
Current and Upcoming Financial Year
TL: Upgrade of emissions seems to be a continuous process by the Indian government. The last calendar year started with moderate numbers; however, from April onwards the volumes drastically dropped but with the quick measures taken by the Indian government, the demand returned in Q4 of 2020.
PC: Team KBI took extensive measures for savings despite the pandemic and a steep ramp-up in the situation without compromising on the safety measures. At the same time, team KBI have exclusive innovative products for the Indian market. We are optimistic for 2021 since the demand curve will only grow upwards. With the surge in demand and controlled pandemic situation (keeping figures crossed), both the campaign of self-reliance and government infrastructure boost will support the CV industry enormously. Further, safety and emission norms are the key drivers for FY22 and beyond. This is specially so given the focus on pollution across major cities and deaths caused by road accident which need many fundamental changes both at vehicle and infrastructure levels.