25.07.2024
India is booming
The economy is growing steadily, and the automation market is keeping pace.
For Balluff, India is a great success story — excellent conditions to participate in the subcontinent’s boom.
India is the country with the largest population on earth — and two thirds of Indians are under 35 years old. This means that India has enormous demographic and economic resources at its disposal. The large working-age population makes the subcontinent attractive not only from the perspective of international labor markets, but also from that of producers: India offers an enormous domestic market for the purchase of goods and services. With an average economic growth rate of around seven percent and an economic output of 4.1 trillion U.S. dollars , India is the world’s fifth largest economy and member of the BRICS (together with Brazil, Russia, China and South Africa). Unlike in many Western societies, India is not concerned with the question of how skilled workers can be recruited in order to secure the economic well-being of the country. Rather, the public debate centers around the question of how jobs can be created for the many workers who enter the labor market every year . The automation industry is one important job driver.
‘Lighting of the Lamp’ by dignitaries to mark the new beginnings.
The Indian automation market
The automation industry is considered a promising growth market in India, both for sales and as an investment location. Average annual growth of about 14 percent is expected over the next five years.
Dr. Uday Bhalchandra, Managing Director at Balluff Automation India, is optimistic: “Given the current good situation, I believe that the market will grow even more strongly by the year 2027 onwards as we anticipate recently announced large investment projects within battery manufacturing, semiconductors manufacturing and also large scale steel industry projects to become active.” He justifies his optimism with the fact that significant improvements are already visible in the area of the Industrial Internet of Things (IIoT), which is impacting the development, production, and management of the entire manufacturing and production logistics chain.
“Manufacturing as a whole is also becoming smarter in India,” Dr. Uday Bhalchandra emphasizes, adding: “Connectivity between people, machines, and devices is an unstoppable trend.” Overall, the Managing Director of Balluff India is convinced: “By using automation technology, India can increase its productivity, reduce costs, create employment opportunities, and strengthen its position in global competition.”
Close to the customer
In India, Balluff has operated its own Indian subsidiary since 2019. Previously, Balluff had already had an indirect presence in the Indian market for more than 20 years actively. In 2019, Balluff integrated the sales partner and its staff, who were already very familiar with the products.
Today, around 50 colleagues work at Balluff Automation India at various locations throughout the country. “Balluff always places the customer at the center of its activities. Accordingly, it is very important to us to be close to our customers,” explains Thomas Sattes, Vice President – Asia Pacific, and adds: “The locations on the subcontinent were chosen accordingly: Balluff's expertise is quickly available everywhere.”
In the northwest, in the state of Maharashtra, lies Pune, one of the three most important centers of the automotive industry in India. Many automation companies and research and development facilities are based here. As Balluff serves many customers from the automotive industry in India, Balluff India has its headquarters there. Not far from Pune is the warehouse, which is located near the economic metropolis of Mumbai, the subcontinent's most important port city.
Chief guest Mr. Rajesh Nath, Managing Director, VDMA India, Thomas Sattes Balluff Regional Vice President Asia Pacific, Florian Hermle Managing Director Balluff, Uday Bhalchandra Managing Director Balluff India at the opening ceremony.
The garden city of Bengaluru in Karnataka in the south of the country is the third largest city in India. In recent years, it has developed into one of the country's most important IT hubs and is known as the "Silicon Valley of India". Chennai is located on the Bay of Bengal in eastern India and is the capital of the state of Tamil Nadu. The "Detroit of India" has traditionally been a center of Indian automobile production. Software development also plays a major role in the city. From both cities, Balluff India serves customers in the south of the country. Customers in the north of the subcontinent are served from the office in Delhi. Balluff India also has an office in Ahmedabad, an up-and-coming industrial location in the far west of the country.
India’s importance for Balluff
“The decision for Balluff to establish its own subsidiary in India came at exactly the right time,” Dr. Uday Bhalchandra emphasizes, considering the subsidiary’s development. Balluff India has already been the group's fastest growing APAC location for last two years, with no end in sight.
The team size in India is set to double by the end of the year. In early May, Balluff India celebrated its fifth anniversary and was able to move into its new company headquarters in the heart of Pune to mark the occasion. The new premises with an area of around 17,000 square feet offers plenty of space for the growing team along with a state-of-the-art technology and training center as well as an experience center.
Knowledge as the key to success
The engineers at Balluff have a high level of industry expertise and can provide expert advice on technical applications. In order to stay up to date, they actively engage with new technologies and receive ongoing training. “Our goal is not only to keep our solutions up to date, but to also anticipate future industry trends,” Dr. Uday Bhalchandra emphasizes, adding that “we want to continue to be at the forefront of technological progress and meet the needs of the market at all times.” For example, the increasing use of AI makes designing automation processes more complex, but also more effective and productive. Providing optimal advice as an expert requires more than technological know-how. Knowing the customer is also crucial. This is why communication between locations worldwide is fundamental. Many customers operate globally, and Balluff ensures that they can be well supported from anywhere. And finally, knowledge management includes keeping expertise within the company. In other words, retaining employees. Accordingly, Balluff attaches great importance to the well-being and satisfaction of its employees.
Supporting sports
There is great enthusiasm for table tennis in Pune and Balluff India is committed to the sport, for example sponsoring matches to promote competition at the district level. At the same time, this gives athletes the opportunity to play matches that prepare them for participation in competitions at a higher level. Additionally, Balluff India has sponsored a preparation camp for both the Inter District and the Maharashtra State Table Tennis Championship 2023, and further supports by providing prizes and gifts for the participants in the competition. In the end, several players from the local table tennis club (Pune District Table Tennis Association) achieved great successes last year.
For Balluff, India is a great success story — excellent conditions to participate in the subcontinent’s boom.