Matrix interviewed R Venkataramani, Chief Executive, BS & B Safety Systems (India) Limited, on the occasion of Sanmar Engineering Corporation·s Silver Jubilee Celebrations.
Excerpts: What encouraged the Sanmar group to launch its engineering wing 25 years ago?
Twenty five years ago, most mechanical equipment needed by chemical process industries was imported from abroad. The industry faced many hurdles in obtaining import licences, even when it came to vitally needed spares. The situation was especially difficult as frequent changes of parts were necessitated by corrosion or wear and tear.
I believe the need to make available good quality spares for the process industry in India was felt by N Sankar and S R Seshadri, from their experience in the Chemplast plant. With the help of Seshadri, Sankar identified one such frequently needed part — mechanical seals needed in process pumps. Out of this need was born the first joint venture of the group Durametallic India, now called Flowserve Sanmar.
What has made SEC such a successful venture?
The group identifies the right product — one that requires superior technology — and selects the world leaders in the field and enters into partnership with them. We do not transfer a product design. We believe in bringing technology to India. Because of the JV partners’ interest in doing business with us, the technology transfer is a perpetual process. We are a professionally managed group, and there is absolute independence in terms of taking business decisions. The group is very transparent and follows high ethical standards.
How would you rate the group vis-à-vis other Indian companies?
Our customers are spread all over the country. Whenever I visit them I always feel honoured by the way they treat us once they know we are from Sanmar. The same thing applies to our suppliers. I feel this is the best rating any group can get.
What are SEC’s strengths?
Respect for talent in people, professional management, high ethical standards and transparency in business.
A word about the type of workforce employed at SEC?
The people we hire are highly skilled in their jobs. We look for the best and we compensate them well.
There must have been problems encountered along the way.
How did you tackle them?
I do not think we have ever had any major problems. Most of the problems we faced were solved at the beginning stage. This may also be due to the fact that people are not penalized if something goes wrong. We look at it as a systemic problem rather than as human error. In other words, people are not afraid to accept that something went wrong. We see to it that we learn from our mistakes and do not repeat them.
How often do you upgrade your machinery?
What methods of training are adopted to keep abreast of the ever changing technological know-how?
Almost all our companies are joint ventures with near equal partnerships. The technology transfer is perpetual and there is a buyback of products manufactured in India.
We have equipped ourselves with the same kind of machinery that our partners have. When the technology changes, we upgrade ours by sending people for training. Whenever newer machines are required for new technology, we upgrade our machines too. There is a continuous upgradation of knowledge and equipment used; only then can we survive in a competitive market.
What quality systems does the group have in place?
We strongly believe that “quality is built in the product”. Hence it is the manufacturing process that controls the quality. Manufacturing is performed by men as well as machines. Using the right machine in the right sequence and training people to perform the job ensures quality. Individually it is taken care of by our Document Procedures in our ISO-9000 Quality system.
A word on plant and personal safety measures?
We conduct plant safety programmes for all our workmen as required by the relevant statutory bodies. We exhibit posters at key areas where safe procedures are required.
Do you believe that “intellectual capital” is the reason
for SEC’s success?
Yes! The structure of the organization and HR policies continue to nurture this.
Can you sum up SEC’s place in the engineering
industry?
We have the best of technology and the best of talents. Through SEC, we have brought the best technology to this country and through people we meet the requirements of customers. We owe the success of SEC to our Chairman N Sankar who foresees the future. Our HR policies speak volumes for his visionary zeal. We were the first in this country a decade ago to introduce a fair compensation package. Compensating the executives based on the ‘value’ of the individual has been in vogue for several years in the group. Because of his vision, we have a unique place in the engineering industry.
What measures has the group adopted towards
environment protection?
Many of the products we manufacture, are for environmental protection. So we, as a group, promote the feeling that we have to be conscious of our surroundings. Besides, we ensure that all our plants have enough greenery around.
We preserve nature. How does it feel to be part of this
group?
It is a great feeling of happiness to be part of the group, where the structure of the organization and culture provide growth opportunities for the individual.
What are the challenges before SEC today?
With liberalisation, we have global competition in India; we also have access to the global market. Our customers are spread over the entire world and they now look for intangibles by way of service. The greatest challenge will be to anticipate what kind of service a customer expects and quickly meet his expectations.
What are SEC’s future plans?
Besides individual product-line additions based on specific requirements of customers, we will definitely be expanding in allied fields for the same customers we are serving. It should be relating to process instrumentation or mechanical equipment for process industries.