Prior to taking charge at BFW, you have been a customer of the machine tool industry. So how are you leveraging that experience from the other side as a machine tool builder now?
BFW has been well ensconced in the Indian machine tool industry for decades. The company has the pulse of the customer, which is the secret behind its successful track record. Almost all BFW special purpose machines and many of its standard catalogue products are supplied only after intense customer interaction.
Having said that, let me add that as a customer I know that everything cannot be expressed in words in formal buyer-seller meetings. Even when the application is broadly described, some parts remain implied or understated. It is not practicable for a capital equipment buyer to describe threadbare the aspirations, the expectations and the apprehensions behind the purchase. It is also not possible for a buyer to describe beforehand the repercussions if the performance does not match expectations; and the rewards if it works out to be better than expected. I am sharing these with my team, sensitising it to decipher concealed signals and to develop empathy. BFW is coming much closer to customers than it has been so far.
Good companies always evolve with the vision that new leadership brings. So what are some of changes that you have been bringing at BFW since you joined in September 2013?
I am trying to make it easy for BFW customers to communicate with us, buy the machines, get them serviced, and have the requirements attended to in a professional manner. As you know, sometimes otherwise very good machines are not sufficiently productive. I am trying to ensure that the good products do not just remain good, but also prove to be productive for the customer. I am interested in providing value to the customer, a high MTBF, a low MTTR, and things like that. I strongly feel that the Indian machine tool industry has abundant talent, which needs to be cultivated and raised to the leadership role. Lean, flexible and frugal organisations are more capable of overstretching and serving more customers in a better manner. Customer orientation, excellence in execution, product integrity, etc., are some more avenues worth devoting attention.
Do you see any gap between imported machines and Indian machines? What are the challenges that you face in this context when dealing with customers? How are you overcoming the same?
All imported machines cannot be categorised as a single entity, neither can all machines made in India be branded as one. Machines manufactured by different manufacturers here or overseas have distinct characteristics. Rather than comparing machines based on their country of origin, let us compare machines on a universally applicable scale. Meeting ISO standards, mean time taken to repair, mean time between failures, operator comfort, maintainability, susceptibility to draw unplanned resources, aesthetics, cost of ownership, productivity, versatility, durability, etc., can be some important factors in the direction. Gaps on each of these are huge between products manufactured by different manufacturers within the same country. BFW customers are knowledgeable, going by merits or demerits of the proposal rather than the country of origin. Moreover, BFW has a subsidiary in Germany, matec Maschinenbau GmbH. We are therefore able to cater to a wide range of requirements, without facing constraints about the machine being Indian or imported.
Indian buyers of machine tools have definitely become more demanding and price sensitive. But have they evolved in terms of factors like understanding of technology, value propositions and lifecycle cost? How are you facilitating the customers in this regard?
Barring a negligible number of job shop owners, whose requirements may not demand their being abreast of the latest in technology, machine tool users are quite knowledgeable about the technology and the underlying concepts. Many users visit international expositions and participate in machine tool events. In fact, some leading machine tool users have been benefitting the machine tool industry by analysing the value delivered versus the value desired, the strong points, the areas to be strengthened, and their wish list! Our role is more about informing customers on how to extract the maximum from the machine for the longest period in a consistent manner.
The year 2013 hasn't been a great year for Indian manufacturing and obviously for the machine tool industry as well. But there is definitely positivity in the air now. Do you see the situation changing drastically with a new government at the centre? How has BFW coped with the recessionary trends and what learnings are you taking forward from the challenging times?
As you have correctly said, the signs are positive. We expect improvement, and are prepared for it. If the improvement is drastic, so it be! However, let us understand that in present times we cannot remain insulated from the rest of the world. A change in Government, policy and work culture is fine; but good improvement on a sustained basis would depend upon global issues. In any case, VUCA (vulnerability, uncertainty, complexity and ambiguity) are part and parcel of business. Whether there is a boom in business or a lull, BFW is committed to meet its obligations.
Have you launched any new product recently or are planning to do so? Tell us about it?
BFW is working not only on introducing some world leading products, we are also bringing in marked improvements in the product and service line. These will be market launched in about six months at the IMTEX 2015 exhibition.
Any plans of expansion?
BFW is expanding its product range. The company has adequate infrastructure and capacity to cater to market needs in the coming years.
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