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May 16, 2023

Bonfiglioli gears up to be a dominant player in India

Invests Rs.100 cr. in Hi-Tech Assembly Facility in Pune To know more about

Invests Rs.100 cr. in Hi-Tech Assembly Facility in Pune

To know more about Bonfiglioli Transmission Pvt. Limited's operations and growth strategy in India, The Textile Magazine caught up with the duo of Country Manager Kennady Kaippally and Vice President (Sales and Marketing – D&P) Seshan Iyer at the company's plant in Thirumudivakkam, Chennai. In a freewheeling interview, they spoke at length about a range of topics including the company's history, product and solutions portfolio for the textile industry, USPs, Sustainability focus and future plans, among others

Bonfiglioli is considered a global leader in the field of Geared Motors, Gearboxes & Drive systems including precision planetary gearboxes and variable frequency drives. The Italy-based group has carved a niche for itself with its world-class solutions in different verticals, namely, Mobility, Wind and Industrial Solutions. Bonfiglioli started its operations in Italy from Bologna in 1964. Making inroads into India, Bonfiglioli India was set up in 1999 with the mother plant being set up in Chennai at Thirumudivakkam and since then the Group's subsidiary has made rapid inroads into the Indian market and over the years has maintained its leadership position in the power transmission space in the Country.

The Mobility vertical caters to the requirement of the Off Highway Markets serving customers in the applications of Earth Moving, Road Construction & Material Handling, Concrete Equipment, Mining Equipments. The Wind Segment provides the drive solutions for the Pitch and Yaw Drive Applications for the Indian and Global Wind Mill OEM;s. These large Planetary Drives are made in the Chennai Facility. The Industrial Division caters to a wide range of applications and is further divided into 2 divisions – Discrete Manufacturing & Process Industries and the Motion & Robotics.

With over 4000 Employees, 15 Manufacturing Sites and presence in over 80 Countries, Bonfiglioli Group's turnover in 2021 was approximately Euro 1.1Billion. Our products and solutions find applications across a wide range of sectors," he elaborates.

Products and Solutions

Sharing details regarding the products and solutions offered by Bonfiglioli Group across industry verticals globally, Mr. Kennady Kaippally says, "As mentioned earlier, we manufacture a wide range of planetary drives for the off-highway applications and the pitch and yaw drives for the Wind Mills. We export a significant volume of our gearboxes to our Global Customers and also to our plant in Italy. One out of every three turbines will have our product. Globally we have more than 30% market share in this segment.

The Industrial division serves the Sectors like Food & Beverage, Chemical & Pharmaceutical, Rubber & Plastic, Packaging & Labelling, Textile, Steel, Cement, Mining and Processing and others.

We offer a wide product portfolio, ranging from the very low to the highest torques. The R&D team in India develop solutions for the Indian Markets and also support our global manufacturing plants. We are a highly innovative company which continually focusses to develop engineered solutions for our Customers.

India Presence and Growth

Elaborating about Bonfiglioli Group's entry into the Indian market, Seshan Iyer, Vice President (Sales and Marketing), Bonfiglioli Transmissions (P) Limited, states: "Bonfiglioli set foot into the Indian market in 1999 by setting up a mother plant at Thirumudivakkam near Chennai. There was no looking back after that. We kept adding to our infrastructure. We now have three plants – The one at Thirumudivakkam caters to the wind and off-highway businesses, The second plant at Mannur close to Sriperambudur is where we manufacture Industrial gear boxes and the 3rd in Pune for Industrial Gearboxes."

"Last year we did a turnover of Rs 1,428 crore and this year we should be heading to the Rs1,600 crore mark. Out of the total of Rs 1,428 crore, the share of the industrial division's business would be roughly around Rs 550 crore. From a distribution point of view, the industrial division's business is directed into an OEM business and a channel business where we sell to our dealers and end-customers. About 60% of the turnover comes from the OEM side. On the channel side we have approximately 45 channel partners, located pan-India. We also have seven service franchisees spread across the country. They are selected, trained and audited by us to deliver world-class service to our end-customers," he adds.

Speaking further on the topic, Mr. Kennady Kaippally informs, "This year we became the largest gear box manufacturer in India. We are in the process of CAPEX infusion to the tune of 350 Crores to add 2 more plants. We have brought land for this purpose in Pune and Thirumudivakkam near our existing plant. These 2 new plants will support the Industrial business. We are growing in all the three segments. In mobility we are the number one with 30% market share. In wind we have 90% market share. In industrial gear boxes we have 20% market share, again enjoying a leadership position. With our USP of offering technologically advanced products at competitive price, we have a competitive edge."

As regards products and solutions offered by Bonfiglioli in India, Mr. Iyer elaborates, "We offer the entire product range that we offer globally. We have in-line gear motors, helical gear motors, parallel shaft gearmotors, planetary gear boxes, helical gear boxes, etc. If you look at the range it can begin somewhere around 45 Nm Torque and can go up to 1.3 Million Nm Torque deliverable range. In heavy duty or what we call Helical gear boxes we offer the Parallel Helical and Bevel Helical, we currently have the maximum torque range upto a 200,000 Nm. This product will be further expanded based on the market needs. These Heavy-Duty industrial gearboxes find applications in Steel, Cement, Mining and some large Chemical Industry applications.

"We are a leader in the Food and Beverage, Chemicals and Pharmaceuticals, and Rubber and Plastic segments. We are also present across the complete vertical of textiles, which involves the conventional cotton and the manmade fibre or technical textile segments, critical applications in the core industries like Steel, Mining, Material Handling and Power." he adds.

"This includes applications like, Travel, Slew, Bucket Wheel Drives for Stacker / Reclaimers, Apron Feeders, Conveyors, Bulk Reception Units, Thickeners & Flotation Cells. We are a leader in this segment. That leaves us with the small business of motion and robotics. It's a niche business and there we are working with customers into the end of line packaging. We are working with customers for warehousing automation and those who are using conveyors, which are typically driven by a gear box or gear motor," he further states.

Textile Industry Solutions

According to Mr.Seshan Iyer, Textile Sector is very important for Bonfiglioli. "We are present across the complete value chain right from bale plucking, opening and cleaning, going forward to carding, sliver, spinning and then to TFO. So, we are there from the pre-preparation of yarn till it arrives at a finished stage and then on to the fabric processing side where you can find us in weaving and knitting lines apart from fabric cleaning and drying lines. Finally, on the cutting and packaging side, we have solutions across the textile breadth. We can provide customers different solutions depending on their torque range. We have gear motors, gear boxes and variable frequency drives. We are perhaps the only solution provider with a complete solution range today in India."

"In technical textiles we are currently working with companies like Lohia Group and Jaiko Industries, providing gear boxes to their machines. These machines are also being exported by these OEM;s and you can find a Bonfiglioli Gearbox in application in countries such as Kazakhstan, Uzbekistan, the Middle East and Bangladesh," he adds. When asked to name some top companies globally to which Bonfiglioli has been supplying its products, Mr. Seshan Iyer says, "Our group has presence across the textile vertical. Some of the top names that we supply to include Rieter, Trutzschler, Saurer, LMW, Kusters, Dhall, etc. These OEM;s use a Bonfiglioli solution and export their machines to various countries.

Competitive Edge

Competition in the gear boxes segment is getting more intense by the day. With similar products available across price points, why should customers, specifically in the textile industry, prefer to work with Bonfiglioli India? Replying to the question, Mr. Seshan Iyer states: "There are certain complexities around the textile industry. Textile machines work 24×7 and therefore needs a very reliable product. Textile applications are influenced by flying contamination, temperatures, humidity, speed and the applications are into continuous operations. The product requirements are stringent with the right seals and lubrication in the gear box."

Bonfiglioli has been working with leading OEMS for a few decades now and has built domain expertise over time. We can confidently state that our products are aptly engineered to meet the textile industry's requirement and are ahead of the curve in terms of technology and energy efficiency. Remember, drives are among the highest consumers of electricity in the textile industry. This is because of the number of rotating spindles and the number of electric motors. So, energy efficiency becomes an important factor in the textile industry," he explains.

Supporting Sustainability Objectives

Reflecting further on the topic of sustainability and pointing out how the company is working towards supporting its customers’ objectives on this theme, Mr. Kennady Kaippally says, "Our factory building is emission-free. The paint that we use on our products is environment-friendly and water-based. We design and manufacture our own energy-efficient motors. Also, the fact that we have a presence in the wind industry is testimony to our concern for sustainability. As a group we are very conscious about sustainability and our products are thoughtfully designed keeping this factor in mind."

Sharing his thoughts on the topic, Mr. Seshan Iyer mentions, "Manufacturing accuracy makes a lot of difference in end product efficiency. To give an example, our worm gear boxes are better than the competitors when it comes to the inherent quality that gets into the manufacturing of our gear boxes. The standards of accuracy, the lubricant that we use and then the sealing makes for a complete system. We therefore deliver system accuracy and not just component accuracy. As a group we are very conscious about the product quality and how these can benefit the end-users"

Automation and Industry 4.0

One of the key evolving trends in industrial manufacturing is the advent of Industry 4.0. Many of the textile machinery makers as well as mills are moving towards digitisation and automation in a big way. Throwing light on Bonfiglioli India's initiatives on this front, Mr. Kennady Kaippally remarks: "We as a group have realised that the textile industry is fast moving in this direction. In fact, that is one of the reasons why we also moved this Sector to the Mechatronics and Robotics vertical. We wanted to move the textile sector-related solutions to a division that has more expertise in Industry 4.0. We are working to integrate our gear boxes with our control systems such that we can offer Industry 4.0, automation and digitisation solutions. A lot of exciting things are happening on this front and we are fast moving in that direction."

Domestic Business and Exports

Giving a break-up of the company's products sold in the domestic market and percentage which goes for exports, Mr. Kennady Kaippally reveals, "As mentioned earlier, this year we would be doing a business of around Rs 1,600 crore, out of which 20% will be exports. We sell to around 21 countries from here. We are one of the few who export to China instead of importing from there. Our products are well-recognised. The expansion that we are planning is also more export-oriented. With many companies looking at a China+1 strategy, they are looking at companies like us who have a presence in multiple countries. I feel that they are especially interested in India because it offers an advantage in terms of price and quality."

Buoyant Outlook

Finally, elaborating on how Bonfiglioli sees the future in terms of potential of the Indian market, manufacturing and exporting out of India as well as targets, Mr.Kennady Kaippally shares: "We are going to invest around Rs 350 crore in India in the next couple of years. Given the proactive push being given to manufacturing by the government, we see a lot of growth opportunities happening. The demand for our industrial products is only going to go up. So far as the off-highway market is concerned, things may be a big sluggish momentarily, but with the infrastructure focus of the government, we expect things to bounce back after this temporary dip."

"With the emphasis on emission norms and renewable energy, we also expect things in the wind sector to pick up soon. Holistically speaking, we can say that Bonfiglioli is positive about growth in India. Our management has a lot of trust in the team. That is the reason they continue to invest here. If you look at 2021 we grew by 50% compared to the previous years. Our CAGR in the last 10 years has been around 18% to 20%. With the government's manufacturing thrust and with free trade agreements with different countries in the pipeline, I am very confident about the growth opportunities. One the areas where we want to be ahead of the curve is in automation and digitisation. We are also keen about the electro-mobility space. As a group we are developing new solutions," he further states.

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Bonfiglioli Transmissions Pvt Ltd, the Indian subsidiary of Bonfiglioli Riduttori S.p.A., a global leader in Power Transmission & Drive Solutions, has conducted ‘Bhoomi puja’ today for a 42,500 sq. mtr high tech, smart assembly facility in Pune, in the presence of customers, partners, government authorities, leadership team, and employees.

The company already has a 7,500 sq.mtr., assembly facility in Pune. The new, bigger facility, scheduled to commence operations by November 2023, will be set up with an investment of INR 100 crore. The new facility will feature high tech and real time smart assembly operations and will boast of an eco-friendly and people-friendly environment.

With the proposed expansion in assembly operations, the company aims to better serve its markets in the western region catering to over 20 verticals in the discrete manufacturing and process sector. It will also offer a wide range of customised products, reduce lead time, quick delivery timelines due to increased proximity.

Following the commencement of the new facility, Bonfiglioli Transmissions will expand its team size, hiring more skilled staff and technicians. The company, in operation in India since 1999, has three production facilities: two in Chennai, and one in Pune. It is a market leader in the country in a range of gearmotors, drive systems, planetary gearboxes, and inverters that find applications in industrial automation, mobile machinery, and power generation, among others. Currently, Bonfiglioli has a production capacity of over 3,50,000 units of gearboxes and gearmotors, its flagship product categories. Its turnover for 2021-22 financial year is INR 1,428 crore up from INR 1,120 crore for the previous financial year.

Commenting about the proposed assembly facility in Pune, Mr. Kennady V. Kaippally, Country Manager, Bonfiglioli India, said, "We are committed to support industrial development in India by supplying smart and efficient systems required for Industry 4.0 operations. The western region represents a high growth market. We are expanding our assembly facility in Pune to better serve this evolving market. The new facility will have the highest standards of quality and safety, consistent with other Bonfiglioli locations worldwide. It will be a hi-tech, real-time smart assembly facility that will help us introduce a wide range of products to 20-odd verticals including food, packaging, cement, steel, pharmaceutical, textile, material handling, sugar, power generation, paper and water treatment sectors. We are excited with the proposed plant as it will also increase the cost competitiveness of our products and reduce lead time to our customers."