Pilloo C.Aga – Director of GoldSeal – SaarGummi India Pvt. Ltd., a Joint Venture of Gold Seal of India & SaarGummi of Germany speaks upfront to Ashish Bhatia on the buoyant sentiment and the bold government.
Q. What is the significance of the supplier industry gathering under one roof and deliberating on key issues after a three-year hiatus in the post-pandemic era?
A. The industry congress is the most valuable for our business especially when it is taking place after such a long hiatus. As suppliers, we sense how happy the Original Equipment Manufacturers (OEMs) are to meet us in person. You can sense the optimism and the affinity for the auto components industry. The Government itself is very bullish on the prospects of the industry and its contribution to the ‘Atmanirbhar Bharat’ vision. The growth of the industry in recent quarters and the playout of the ‘China+1’ strategy ought to augur well. We look forward to India ranking third behind the United States and China up from the 10th rank to the fifth rank surpassing the UK as the fifth largest economy and going beyond in the next five years. It is achievable!
Q. Your take on the similarities between aerospace and the automotive industry. Do you hope to have similar access to advanced technology and greater synergies for a cumulative benefit?
A. You are right there are similarities that need to be leveraged. You must however take into cognisance the higher quantum of investments witnessed in the aerospace industry in comparison to the automotive industry. The CapEx is much higher in the case of the former. We have in the past and must continue to leverage the innovation and continuous improvements in the aerospace field that are of relevance to our being. The building blocks of the two realms are the same. If the industry can gain access to a relative investment perhaps foreign funding then there is no stopping us.
Q. Your take on the PLI scheme? Is it all-inclusive?
A. We haven’t sought approval under the Production Linked Incentive (PLI) scheme. I don’t know many immediate peers who have taken advantage of the PLI either. It is true that it can be looked at as an investment made now for turning competitive in a five-year horizon. With approvals and investments categorised as Advanced Automotive Technology (AAT), it isn’t all-inclusive. Cracking it is not as easy.
Q. Your take on the level playing field for either party in an OEM-supplier agreement? The government is looking out for the suppliers.
A. The Government must be credited for taking a bold stance on the subject as they have called upon the suppliers to flag any concern areas in the fine print of such agreements. It is perhaps the first time, a tall figure like the Commerce and Industry Minister, Piyush Goyal has voiced it out in public. It is a really bold step for the government that is willing to iron out creases if any. ACI
“We look forward to India ranking third behind the United States and China, up from the 10th rank surpassing the UK as the fifth largest economy and going beyond in the next five years. It is achievable!”
“We have in the past and must continue to leverage the innovation and continuous improvements in the aerospace field that are of relevance to our being. The building blocks of the two realms are the same.”
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