Manufacturing of Drives & Automation Products Centre of focus shifting to India


Indian economy is performing well and is one of the fastest growing in the world. International Monetary Fund has announced a growth projection of 5.9 per cent for 2023-24 from the earlier 6.1 per cent as a slowdown in consumption growth is expected.

As per IMF, investment is the main driver of growth. The double-digit credit growth, strong PMIs and the government spending programme complement this projection.

India is truly turning into a manufacturing hub as companies either set up manufacturing bases here or expand their facilities. The demand for high-performance drives and automation is increasing worldwide and so, we see key players expanding their manufacturing facilities.

Embraced by all sectors

Automation is being embraced by all sectors because by automating tasks manufacturers can increase production speed, optimise operations and decrease customer complaint redressal time. There is also a rapid increase in the usage of intelligent automation which is a combination of artificial intelligence, machine learning and process automation. This not only reduces labour costs but also optimises production processes. Automation industry is growing at lightning speed. There is also a shift in the mindset and customer behaviour globally. Customers, now want faster access to the products, they insist on customised options and also ask for quick serviceability. Local supplier ecosystem for the Automation sector has to be strengthened as India turns into a major manufacturing hub.

Shift in Centre of Focus

The centre of focus is shifting to India for manufacturing of drives and automation products in the last few years, precisely after the pandemic stuck the world. The pandemic-induced lockdowns impacted many sectors and companies, including the drives and automation manufacturers. The global supply chain was disrupted and this hampered productivity which had multiple effects on various aspects of the industries. Major players in the drives and automation sector moved out of the existing manufacturing base.

Fuji Electric India used to import products from the manufacturing plants of our parent company, Fuji Electric in Thailand and Japan. The demand for effective drives and automation products were growing in India and we had to chart out our expansion plans in the country. Thankfully, the government policies are in our favour, and so we inaugurated our new facility for drives and automation solutions in Chennai in March 2023. The factory has a built-up area of over 65,000 square feet with an investment outlay of Rs 150 crores. The new manufacturing facility will help us serve our customers with annual production capacity of 120k drives and excess of 200k PCBs. Some of the critical equipment have been imported from Japan to match manufacturing processes between Fuji Electric India and Fuji Electric.

To sum up, productivity optimisation, downtime minimisation and energy efficiency remain major trends fuelling the growth of drives and automation products. The sustainability push by the Indian government and corporate businesses also plays a key role.

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