In a recent interview Veena Lakkundi, Senior Vice President, Corporate Strategy & Development of Rockwell Automation provided insights into the current state and future growth opportunities in global manufacturing.
She highlighted North America's significant growth due to domestic incentives and investments, especially in semiconductors. India, Mexico, and Vietnam were noted as emerging manufacturing hubs.
Lakkundi expressed optimism about India's potential to become a global manufacturing powerhouse, citing its technological advancements and skilled workforce. She emphasised the importance of resilience, agility, and sustainability for manufacturers globally and discussed Rockwell's strategic focus areas and recent expansions in India.
The impact of AI on manufacturing and Rockwell's approach to leveraging India's market and talent were also key discussion points. “We're investing heavily in India to leverage its market potential, talent, and manufacturing capabilities for both the domestic and the global demands,” she told ETManufacturing in the interview. Excerpts:
Q: Can you provide an overview of Rockwell's perspective on the current state and future growth opportunities in global manufacturing?
Globally, manufacturing is growing; but it depends on the region. North America shows the most significant growth due to domestic incentives and investments in sectors like semiconductors. Outside North America, India presents substantial growth opportunities, which is partly why I'm here this week.
Q: Apart from India, what are the other similar markets? I have learned that Mexico and Vietnam are also emerging as hubs for major manufacturers.
Absolutely. The pandemic highlighted the need for global resilience, prompting companies to diversify their manufacturing locations. Besides India, Mexico, Malaysia, Thailand, and Vietnam are becoming important alternatives. Factors like skilled workforce, ease of doing business, and geopolitical stability are crucial in these decisions.
Q: How do you see India as a potential to become the next global manufacturing hub in terms of becoming the next China?
We're very bullish on India. The technology transformation here is remarkable, with advancements in areas like fintech and unified payment systems. Indian manufacturers are focusing on digital transformation to address labour skill shortages and enhance productivity. The country's rich talent pool supports this transition effectively.
Q: There is software progress in India as in Rockwell also. Can India, with its manufacturing prowess, become like or beyond China?
India holds great promise for manufacturing expansion. Companies need to leverage India's domestic market and partner with organizations to optimize incentives and competitive positioning. Technology integration here is impressive, making India a strong candidate for significant manufacturing growth.
Q: What are the common pain points of Indian manufacturers at present compared to the global market?
A: Indian manufacturers, like their global counterparts, strive for resilience, agility, and sustainability. They aim to optimize production, reduce waste, and lower resource consumption. Our role is to provide technology and services to help them achieve these business outcomes effectively.
Q: Since you mentioned the auto industry and components, there are a lot of MSMEs here. How do you intervene for them?
Yes, MSMEs are a large part of our customer base in India. Their challenges differ from that of the large corporations, but the goals are similar: competitiveness and growth. We tailor our solutions to fit the specific needs and infrastructure of MSMEs, and help them digitally transform their operations efficiently.
Q: What are the focus areas of Rockwell for sectors you want to support?
A: We serve all industries, but we have a strong presence in consumer packaged goods (CPG), tyre manufacturing, semiconductors, life sciences, and automotive, particularly in electric vehicles (EVs) and batteries. We also focus on traditional oil and gas, with efforts to support their transition towards decarbonization.
Q: What is the scope of your recently opened manufacturing facility in Chennai?
We're excited about our new facility in Chennai. It's about 98,000 sqft and will employ around 230 people. This facility will expand our capacity for new products, including intelligent devices and software developed in India. It's a significant step in our growth and investment plans in the region.
Q: How do you see India in the overall scheme of things for Rockwell? Where does India stand as a market for you right now, and what is the potential you see in the next few years?
India is a key market for our future growth. By 2032, 53% of manufacturing is expected to be in Asia Pacific, with India playing a substantial role. We're investing heavily in India to leverage its market potential, talent, and manufacturing capabilities for both domestic and global demands.
Q: Are you looking at any mergers and acquisitions to build up new capabilities?
A: Yes, we have acquired companies in India, like MES Tech and Knowledge Lens. We're focused on creating value for our customers through organic product development and strategic partnerships. We're also interested in India's vibrant venture and startup ecosystem to stay ahead in technology and innovation.
Q: How will AI impact manufacturing?
A: AI, including generative AI, will revolutionize manufacturing by automating mundane tasks and integrating legacy systems. It will enhance workforce productivity and decision-making, leading to a clear competitive edge for companies that adopt AI effectively. Our goal is to integrate AI into our products to help customers achieve business outcomes at scale.
Q: Do you want to share anything else, or any outlook you would like to talk about?
This is a unique moment for investment in India's growth potential. With a focus on supply chain strengthening and leveraging local talent and technology, nothing is stopping India from unfolding its true potential. The ease of doing business is improving, making India a more attractive market for long-term growth
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