Exclusive interview with Mr. Rajesh Nath, Managing Director, VDMA India
Automation is a great tool to enhance productivity, quality and work place safety. Please give your views on the current status of automation in the Indian automotive sector?
India is one of the strongest growing economies among the Asian emerging markets. It is still considered a low-wage country, and using automation in the production process is not often deemed economical. This may be the reason why robot installations are still at a low level.
In 2012, robot sales in India decreased by three per cent to 1,508 units. The weakening of the economy affected robot investments in 2012, which were originally expected to be considerably higher. Considering the new projects to increase production capacities announced by the international and local motor vehicle suppliers, robot investments will gain momentum between 2014 and 2016. In addition to low wages, infrastructure problems and bureaucracy are the main hurdles preventing an increase in automation in India.
Between 2009 and 2012, welding registered considerable expansion. It increased from 170 units in 2009 (the year of the economic crisis) to 840 units in 2012. Industrial robots for handling operations fell by 10 per cent from 479 units to 430 units in 2012. In 2007 a peak level of 570 units was reached. Given the applications involved, such as welding, dispensing and material handling, it is likely that about 70 per cent of robot sales ended up in the automotive industry. The rubber and plastics industry accounted for 10 per cent of the total supply and the metal and machinery industry had a share of five per cent.
With globalization, automation has also become absolutely necessary to be able to provide products of utmost consistency and quality. What is the contribution made by the German automation sector in this direction?
More than half of the turnover generated by the German robotics and automation industry comes from abroad. There is no end in sight for the global automation trend: In the US, the re-industrialisation process is in full swing and factories are being updated in order to reinforce their competitive edge. This is the reason for the high demand from North America.
In China, not only higher quality requirements but also increasing labour costs propel the use of automation technology. This is why China is by far the most dynamic market for German manufacturers of robotics and automation technology. Also, in Europe, the significance of the industrial sector has been recognised and modernisation efforts will be pursued more vigorously in the medium term.
The number of manufacturers of robotics and automation (robotics, integrated assembly solutions and machine vision) in Germany grew by one per cent in 2013 and generated a turnover of €10.5 billion. For 2014, they expect an increase by four per cent to €11 billion. While the suppliers of machine vision achieved a surplus of five per cent, to €1.6 billion, for the total 2013 industry turnover, and also expect a similar growth rate in the current year, the manufacturers of integrated assembly solutions managed to maintain their record turnover of €5.9 billion in 2013. As for 2014, they expect a moderate growth of one per cent. Robotics forecast increases of three per cent, to €3.1 billion in 2014.
Lightweight construction is on the agenda in automobile production for many vehicle manufacturers. How far can automation help to achieve this?
Lightweight construction is one of the technologies that is most in demand globally – in almost every branch of industry. Lightweight construction solutions are sustainable. By reducing the weight and optimizing construction they can save on raw materials and energy and thereby overall costs. The share of lightweight construction materials in automotive engineering will increase from the current nearly one-third to more than two-thirds by 2030.
One of the main challenges of our times is to use limited resources efficiently. And the decisive factor for automobile construction of the future is to reduce the weight of the car. Car manufacturers are very particular when it comes to the weight of their models: the lighter they are, the less fuel they consume and the less carbondioxide they blow into the air. If a car loses 100 kg, depending on the type and driving style, it can save anywhere from 0.3 to 0.6 liters of fuel per 100 km travelled. It also means a reduction of 7-12 grams in carbondioxide emissions for each km.
Lightweight materials, which have both high strength and stiffness, are the materials for automobile construction of the future. This is due to safety reasons, which cannot be sacrificed in order to reduce weight. Carbon fiber reinforced plastics (CFRP) have the characteristics that are needed. However, CFRP is a challenge in production technology, and currently, CFRP components are mainly used in the sports car sector and in small batch automotive production.
Researchers today have already developed a new production method for the automobile industry. The method combines a braiding machine of the kind typically used in the textiles industry with a pultrusion system. The braiding machine gives the dry carbon fibers the right form and the pultrusion machine covers them with resin. Until now, everything had to be performed by hand – fibers placed in the tool and lined up and the resin injected – but now all of these steps are fully automated. Made by hand, the individual components could only be produced step by step, with all components of a certain length. The combination system, on the other hand, produces the components continuously, so the parts it can produce could theoretically be infinitely long. Thus, automation is the only solution for mass production in order to meet the increasing demands of the automotive industry.
Application of service robotics is gaining momentum all over the world, and what is India’s share today?
Service robotics is just becoming an independent industrial sector. Whereas, hitherto, the focus has been on research, now new companies and applications have emerged. According to the latest available International Federation of Robotics (IFR) information, 16,100 service robots were sold for professional use worldwide. Growth rates of 10 per cent per annum on average since 2006 added to the industry turnover which reached €2.5 billion in 2012.
Most recently, 5,300 robots were used for agriculture, mainly milking robots and other robots for stock farming and crop cultivation. Also logistical systems have proven to be bestsellers: Some 1,400 have been installed above all automated guided vehicles used in factories. The sale of medical robots increased to 1,300 units. The major applications concern robots assisting in surgery and medical treatment. IFR assumes that between 2013 and 2016 at least 95,000 new professional service robots worth €12.3 billion will be sold worldwide.
In the past few months, major IT companies like Cognizant, Infosys and Wipro have signed agreements with New York-based IPsoft, an organisation that promises robots and humanoids that automate and deliver IT projects at a cost that is roughly less than one-fourth the billing rates of engineers from most domestic IT firms. Currently, the robotic surgery in India is in its infancy. There are only 13 robots for a country having a population of over one billion.
India is ideally suited for robotic surgery as the surgeons are skilled, the patient volume is high and a full spectrum of complex diseases are encountered. In India particularly, multi-speciality robotic surgery has a great future. We are quite aware that industrial robots are in a nascent stage in India. Hence only service robots and their use on a larger scale will be seen in India in the coming years.
Starting from 2020, European automobile manufacturers will be faced with stricter limiting values for CO2 emissions. How far can the automation industry provide the best solution?
German automobile manufacturers are working full steam to reduce CO2 emissions. The development of highly efficient drive concepts, engine downsizing, new transmission generations and weight optimization have already resulted in significant improvements over the past years. In spite of all progress, additional efforts are required to comply with the restrictive EU guidelines as per the German Association of the Automotive Industry (VDA). The topic of light construction is at the top of the priority list in this context. Less weight means less consumption and consequently fewer emissions. Hence automation as explained earlier is a core element to light weight construction for automobiles which in turn also reduces CO2 emission levels.
What will be India’s participation in Automatica 2014?
In 2014, some of the multinational companies in India like ABB India and Kuka India would be participating with their principals at Automatica 2014. The exhibitors were very happy with the increase in the number of visitors from India at the last edition and the numbers will only increase this year. We are expecting over 300 visitors from India this time.
In 2013, the German machine tool industry produced machines and services worth around 14.5 billion Euros, and what is the contribution from the automation sector?
The German machine tool industry ranks among the five largest sectors in the country’s mechanical engineering segment. It supplies production technologies for metalworking applications to all categories of manufacturers, and makes a crucial contribution towards progressing innovation and productivity in the industrial sector overall. Due to its absolutely key position for industrial production volume, its development is also an important indicator for the economic vigour of the country’s industrial sector as a whole. In 2013, the German machine tool industry produced machines and services worth around 14.5 billion euros, and was employing about 71,400 people (annual average for 2013, firms with more than 20 staff). This corresponded to a growth of two per cent.
In manufacturing, which includes the machine tool industry, we are witnessing a paradigm shift which increasingly links the real-life factory with virtual reality. Embedded systems, seamless digital networks, an increasingly decentralised control of production, the virtual planning of products and production as well as remote maintenance are the building blocks of the factory of the future. This can only be achieved through automation.
To my knowledge, there is still vast scope for Indian companies to automize the production facilities, particularly in the fastest growing automotive sector. Your comments please.
This global trend towards adoption of robotic automation is increasing in India, but is still in early stages. Automation, still being in its infancy in several sectors, is a reflection of being in the ‘low value-addition’ zone. India is required to leap-frog to ‘higher value-addition’ manufacturing processes. The real drive for automation started only in 1997, and India is lagging behind in comparison to the world growth in the automation sector. The factors affecting the automation sector in India are the political scenario, the prevailing economic condition and the social and technological challenges.
Indian industries have realized the importance of robotics + automation and are willing to make substantial investments, as the cost of skilled labour is rising, and production processes are getting speeded up without compromising quality standards. These factors are forcing Indian manufacturers to consider industrial robots as a viable option, despite the relatively high capital costs. Industrial economists recommend that robotics and automation will save costs in the long run.
Growing demand for industrial robots has attracted leading global manufacturers of robots such as Kuka Robotics, ABB, Fanuc, etc., to set up facilities in India to serve the local market needs. India’s transformation into an automobile hub, with several leading international auto majors in the country, becomes the primary driver for the robotics and automation industry. The Indian manufacturing arena is poised to grow larger in the coming decades; thereby robotics industry business will remain vibrant.
The automation industry is driven currently by the automotive, power, chemicals & fertilizers and the oil and gas sectors. The other sectors that also use automation to lower variance are pharmaceuticals, food & beverages, water & waste water, cement, textiles, metals and mining.