The innovation machine

3M India's scorching growth is supported by a strong R&D which develops products for the local market

From a modest beginning 30 years ago when it set up a small office in a basement on Museum Road in Bengaluru’s Central Business District, 3M India has come a long way with revenue of nearly Rs 25 billion in FY17 with some 1,500 employees working at two innovation centres, four manufacturing facilities and six branch offices.
 
3M India, the Indian arm of the US-headquartered 3M, which was founded in 1902 with a focus on mining, has achieved all this largely for two reasons — a customer-centric approach to doing business and an unwavering focus on R&D, which also helped 3M distinguish itself from its rivals.

 
Debarati Sen, 3M India’s managing director, who joined the company in 1996 and has been with it for more than 20 years in various global roles, believes the best of 3M India is yet to come: “Our innovation today is more meaningful than ever to India and our customers, with the country looking forward to increasing manufacturing to over 25 per cent of GDP, providing efficient and world-class healthcare to its 1.3 billion citizens and a thriving consumer base with increasing aspirations.”
 

3M India builds products relevant to its local customers. Though the market has seen a mushrooming of Chinese products in almost every segment 3M operates in, its focus on customers has made it resilient to these attacks.

 
One example of how quickly it has launched products that address local issues is N95 respirators. In November last year, when the smog levels in the National Capital Region (NCR) had shot up, the biggest challenge before the authorities was to make available enough respirators, not masks, as there was a huge concentration of microscopic PM2.5 (that cause asthma and cancer) in the air. 3M quickly launched N95 respirators with advanced filter media that help trap over 95 per cent of particulate matter, while aiding easy breathing, leveraging the strength of its India R&D.
 
For every product 3M comes up with, says Kris Sridhar, executive director of R&D, there’s a litmus test it must pass: “Is it aligned to our growth strategy? Do we have access to technologies in 3M to solve customer or industry needs? Is the need specific to a customer or broad-based? Can we protect through patents the unique solutions we offer?”

 
The other big advantage for 3M India is that it can draw on the huge base of proven, patented technologies that its parent has developed over the years. From adhesives to materials to sensors, the company’s technologies are spread over a wide base, allowing its engineers to dream up new products every day.
 
In India, 100 employees, working in core R&D, have filed several patents globally and are constantly looking at building India-specific products, which can then be exported as well. There’s innovation on the business side as well, with 3M India being the first unit of 3M globally to have ventured closer to retail with its 3M Car Care stores. While the stores are franchised, all the technology, processes and products used were developed specifically by 3M.

 
“Our strategy is anchored in ensuring our customers are at front and centre for everything we do,” said Sen.
 
Over the last five years, 3M India’s revenue grew at a compounded annual rate of 8.26 per cent while net profit grew at 35.45 per cent a year. The healthy balance sheet has given the company the ammunition to spend on R&D and marketing initiatives in its various product segments — industrial, healthcare, safety, graphics and consumer.
 
3M India expects to increasingly come up with solutions for the local market, such as surgical dressings for the Indian skin, which can be used in non-air conditioned environments for faster healing. It is also planning a foray into the defence sector, leveraging its global expertise, as it targets double-digit growth.