Creating a niche on a global platform is indeed the biggest aspiration of every small and medium business owner. But in today’s volatile environment, expanding aggressively into foreign markets has become a distant dream for many SME owners. However, one company that has been able to operate in a heavily competitive market space and build a global presence for itself is Inductwell Engineers Pvt. Ltd.
Marching forward with its core leadership and customer centric principles, today Inductwell Engineers is a well known name in induction hardening sector. In an exclusive interview with Businessnonstop.in, Mohit Mayunk Bhutani, Director Inductwell Engineers Pvt. Ltd. reveals some of the interesting facts that have helped Inductwell Engineers stand out from the rest of its competitors.
1. How did you come up with the idea to set up Inductwell Engineers Pvt. Ltd.?
When we started, Induction Hardening Job Work was outsourced. So, with the help of a friend who had similar requirements, we set up our own plant for Induction Hardening Machines. We weren’t making profit initially but the good thing was we weren’t even suffering losses. We realized we still had a lot of spare capacity and started marketing ourselves and we got few orders too; eventually, we started making profit.
We then worked on improving our online presence, participated in exhibitions and got orders. We were now both a manufacturing and a trading company. Other companies in china gradually approached us to market and service their products in India. Gradually, our portfolio expanded.
2. What were the biggest roadblocks while setting up your business and how did you overcome them?
The biggest roadblocks were getting our unit run on a good capacity and prevent machinery breakdown. Since the whole concept was new to us, we made a lot of mistakes initially due to which we suffered losses.
However, with proper focus and strong networking, we improved our systems and were back in business.
3. What is the significance of innovation and technology for small and medium enterprises? What steps should an SME take to incorporate R&D successfully?
I believe Cost effective Innovation and technology is the key to the growth of SME Sector. Innovation should not only happen at the product stage, but in process as well. We emphasize a lot on innovating our processes to provide a customized cost effective solution to our customer.
For R&D to happen successfully, one should emphasize a lot on encouraging the team to take risk. Involvement of top level management is also very essential for R&D to happen. Whenever we are developing a new component or making a change in the process, we make sure our senior level management is involved in the process.
SMEs should set a deadline for all developments. It really helps a lot. Lastly I would say R&D is more about giving time, investing money and breaking the rigid mentality of people in the organization.
4. According to you, how much online marketing/advertising is fruitful for SMEs?
In case of SMEs in Servicing sector, online marketing is the key to expand business. The number of web enquires we get in a quarter for our products because of online medium is equivalent to number of inquires we get from one exhibition where we have to spend a lot of time, money and resources. So effectively, online marketing is giving us better results than an exhibition.
Having a web presence is not sufficient. Websites must be optimized to get leads. Google Ads is not a cost effective solution. The better Google ranks one’s websites, the more competition one is eliminating.
5. Your company is a manufacturing SME, what government reforms were really helpful for you while establishing your roots in the market?
We started availing benefits of government reforms very late. Simple reason was the lack of awareness.
We recently got an energy audit done in one of our office free of cost. A few findings of the audit were worth implementing and we are sure we would bring electricity expenses down by nearly 4-5% monthly.
We are a part of Aviation Cluster formed by the Indo-France government. Now this training comes at a highly subsidized cost. The aviation cluster will prove to be a turnaround for our company if we are able to implement it in our office.
We are now applying for 15% subsidy on technology upgradation. The government says the subsidy will reach the industry within 2 years which is a lot of time. I feel the government should reduce this time to 6 months so that the subsidy is actually beneficial to the industry.
6. Many young entrepreneurs are coming with innovative startups. Based on your experience, what advice would you like to give them to make their venture a success?
Every startup should focus on building a strong team. Ultimately, it will be your team who will implement your ideas. Startups should also try automating the process from the first day. The market is facing acute shortage of labor.
Entrepreneurs should learn to climb one stair at a time. So, expand your portfolio only once you have achieved your initial goals. Not doing so can lead to huge losses. You should also know the USP of your company. Your USP will add value to your customer.
Last and most importantly, do a lot of Networking and listen to the talks of well established entrepreneurs. Learn from their mistakes and try to implement ideas that brought them success.