Automation – An Indian Perspective
Published on : Tuesday 31-10-2023
The Indian government's focus on promoting manufacturing and infrastructure is driving the adoption of industrial automation technologies, says Rajesh Nath.
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When we talk about the evolution of Automation, it is extremely important to consider the four different eras of Industrial revolutions. The first Industrial Revolution (I1.0), which dates back to the 18th century, was most significant, as it created a strong foundation for further industrial revolutions. This I1.0 was all about mechanised-production, running on water and steam. Then followed the era of I2.0 (mass production, using electricity, followed by I3.0 (Automation through IT and electronics) and today we are in the era of I4.0 (Cyber Physical Systems, IIoT, Big Data, Cloud computing, etc.). In fact now we are already speaking of the transition from mass customisation in I4.0 to mass personalisation in Industry 5.0 with the human element supporting technology of I4.0
India's industrial automation market is growing rapidly. According to a report by Mordor Intelligence, the Indian industrial automation market is expected to reach US$16.54 billion by 2025, growing at a compound annual growth rate (CAGR) of 8.84%.
The market is segmented into various sectors, including automotive, pharmaceutical, food and beverage, chemicals, oil and gas to name a few. The automotive sector is the largest user of industrial automation in India, accounting for more than 30% of the market share. The pharmaceutical sector is also a significant user of automation technologies, with a market share of around 20% followed by food and beverage with a share of 15%.
Automation in India can be categorised into three dynamics:
1. Don’t need it
2. Essential for sustainability, and
3. Indispensable for subsistence.
The true Factory Automation (with IT and electronics implementation) crawled into the Indian industrial arena approximately around four decades ago. The scope of automation included Computers, Electronics, Pneumatics, Electricals, etc. Those who offered automation solutions to the industries at that time were literally ‘shown the door’. A high level of ‘unacceptance’ and ‘resistance’ prevailed in the market regarding any kind of automation solutions. The response from the markets to suppliers was very clear and hostile – ‘We Do Not Need It’.
Since that period of ‘We Do Not Need It’, it took almost two decades for a transformation of mindset and a big industrial transition to come to an understanding that automation is truly ‘Essential for Sustainability’. With such an outlook, the industries only thought of fulfilling the ‘then’ current automation needs and somehow remain ‘afloat’ in the market including maintaining a certain level and image of their company. There was hardly the spark to go an extra mile and think in long terms into the future.
Contrary to the transition period from ‘We Do Not Need It’ to ‘Essential for Sustainability’, which took two decades, however, the next leap to the recent times of ‘Indispensable for Subsistence’ took just little above one decade. The technological developments and innovations happened in that period at a commendable pace. Opportunely, the markets also responded to such technologies and solutions with great enthusiasm, and started implementing them. The processes were getting more and more complex, the speed to market and time to market posed a big challenge to the industries. Now it was not just about maintaining a certain level and image in the market, but also exhibiting to the world: who is the ‘smartest’, ‘fastest’, ‘best networked’ and who has the ‘best IT infrastructure’, ‘the best IIoT & I4.0 portfolio’, etc. Industries have awakened to the fact that, without smart and advanced technologies, the future of their companies looks somewhat bleak. Just imagine, IIoT and I4.0 were just two ‘buzzwords’ in India, a few years ago. Today, thanks to many Automation-solution providers in the Indian market, these two buzzwords are turning into a reality. They are helping the industries to realise their dreams to build ‘Smart & Connected Factories of Future’.
As per the 2023 State of Smart Manufacturing Study, which surveyed more than 1,350 manufacturers across 13 of the leading manufacturing countries including India, China, Germany, Japan, the US, and the UK-globally, the top five technologies that respondents invested in and had the highest return on investments over the past year were process automation (33%), cloud/software as a service (SaaS) (30%), industrial internet of things (IIoT)/internet of things (IoT) (25%), machine integration (24%) and machine learning/artificial intelligence (23%).
The Study reflects the growing interest of the Indian manufacturing sector to adopt digital technologies to achieve digital transformation operational excellence. Manufacturers in India want to optimise processes and focus on performance enhancement by embracing smart manufacturing. Moreover, companies are recognising the skills mismatch and importance of reskilling and upskilling, along with automation to optimise manufacturing potential.
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The overall emphasis is on leveraging Industry 4.0 to achieve global competitiveness, which aligns with the Indian government’s vision of Atmanirbhar Bharat and Make in India.
When it comes to talent and the workforce, 58% of survey respondents in India shared that employee resistance to technology adoption and change is the main barrier to adopting smart manufacturing followed by the lack of knowledge and skills to take advantage of smart manufacturing technology and benefits.
In fact, half of the manufacturers in India (51%) plan to introduce flexible scheduling and utilise technology to create more engaging jobs (49%). Furthermore, 37% believe that smart manufacturing can help to mitigate the skills shortage. The report included recommendations and adoption guidelines for manufacturers on system-level approaches to reduce ‘time to talent’ and achieve Industry 4.0 business outcomes. It also highlights the growing significance of environmental, social and governance (ESG) for manufacturers – 87% of Indian respondents have at least some formal ESG or sustainability policy in place. The report also advocated for collaboration between government and industry for creating a manufacturing workforce. Moreover, the Indian government's focus on promoting manufacturing and infrastructure development is driving the adoption of industrial automation technologies across various sectors. The government's 'Make in India' program aims to boost domestic manufacturing and attract foreign investment, which is expected to drive the demand for automation technologies.
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Rajesh Nath is Managing Director, German Engg Federation (VDMA) India Office. Mr Nath has more than 32 years of experience working in various industries in Germany and India. He has been accorded the ‘Cross of the Order of Merit’ – the highest civilian award from the German President, for promoting Indo-German Trade in the Engineering Sector. He has a degree in Bachelor of Engineering (Mechanical) with distinction. He also has a Business Management Degree (First Rank, Gold Medal). Further he did an International Business Program from the reputed Indian Institute of Management (IIM), Joka in 2004.
Mr Nath joined the Indian office of The German Engineering Federation (VDMA) as General Manager in 1999. He was appointed Director of the company in 2002. Since 2008, he has been heading the organisation as Managing Director. During this period the export of German machinery to India has increased almost 6 fold and the number of VDMA members in India now stands at around 600.
Mr Nath started his professional career in Germany with Rheinische Kalksteinwerke, Wülfrath where he worked from 1991-1993. He then joined KHD Humboldt Wedag, Koeln in the Environmental Technology Division and worked there from 1993 till 1997. Mr Nath is a Fellow Member of International Council of Consultants, Member of Institution of Engineers in India, Fellow Member of Mining, Geological and Metallurgical Institute (MGMI) and other well known bodies in India. He is also on the editorial board of several reputed industrial publications and a committee member of The Quality Council of India. He is also actively involved in social work with the NGO – KADAM which provides livelihood solutions to women and youth in the rural areas. Further he has been connected with Rotary International since many years.