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Equipment company Sandvik AB’s subsidiary Sandvik Asia is hopeful that barriers to the Indian mining sector’s growth will go away eventually. For globally established Swedish mining equipment companies, such as Sandvik and Atlas Copco, the emerging Indian mining scenario holds immense promise.
Soumitra Banerjee, President of the mining division of Sandvik Asia, explains how the company is gearing up to grab the opportunity.
How much of Sandvik Asia’s current turnover is attributable to the Indian mining sector?
The total turnover of the company stands at around Rs 2,800 crore. The mining vertical is the largest contributor to the turnover.
How do you see the potential of mining equipment market in India in the next few years?
In the segments where we are present, we anticipate a three-fold growth by 2015. Sandvik’s mining vertical consists of bolter miner and continuous miner, drill rigs and rock drills, load and haul equipment, crushers and screens, rock tools and systems; and mining system comprising bulk material handling equipment.
How you are gearing up to tap the unfolding potential?
We are making investments in India-specific manufacturing and R&D. In manufacturing (at Chakan near Pune), fresh investments are being made for new products meant for the domestic market. We have come up with a new product for the local coal mining sector. We have also planned certain products for the local market based on demand. For the R&D Bangalore centre, we have planned major expansion. Some 250 more engineers would be added in the next three years for development of locally applicable products.
What kind of R&D investment are you looking at?
About 1-1.2 per cent of the profits a year. It is a continual process. We have a number of mining sector dedicated R&D centres and design-engineering centres, both for equipment and tools, in the country.
Gradual removal of mining bans or raising of limits is taking place in the country. Are you ready to take on surge in demand for products and tools?
We have been working on it and now we are ready with ramped-up capacities. We are also building up skill capacities through focus on training. For example, in the case of underground mining, many projects are still on hold. But, we have chalked out plans for additional recruitments and training so that we can time the implementation depending on the change in ground realities. The distribution has also been extended to use the opportunities when they arrive.
A growth strategy for the period between now and 2015 is also in place.
Where do the business opportunities lie?
Coal, because we are barely present in this segment. Also, in zinc and copper, where we are strong in the underground mining space. In open cast mining, iron ore should be our growth area in India.
jayanta.mallick@thehindu.co.in
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