Small and medium enterprises (SMEs) in Punjab are investing substantially in automating their processes, despite facing challenges on various fronts (such as deficit power, labour shortage and a cumbersome tax structure) and the squeeze on their margins due to the downturn in the last one year.
Various clusters in and around Punjab — such as automobiles, auto parts, farm-equipment, agricultural implements, light engineering, leather, machine tools, tractors and combine harvesters — have been stepping up their level of automation.
“The zeal among entrepreneurs to keep pace with global practices helped us to register growth despite the economic slowdown,” said H S Saggu, the managing director of Mohali-based Sam Automation Technologies Pvt Limited, an International Organisation for Standardisation-certified provider of computerised numeric controlled(CNC) machines.
The year 2008-09 had surprised them all with unprecedented growth of over 25 per cent, he added.
According to Sanjay Bajaj of Bajaj Sons, Ludhiana, an ancillary owner at Ludhiana who deals with Hero Honda Motors and Endurance Systems (a sister-concern of Bajaj Auto), automation is the need of the hour as it provides entrepreneurs with flexibility in manufacturing.
“Frequent changes in the product make-up have made it indispensable for us to invest in CNC machines, as a small change in the fixture results in the desired component. Special purpose machines are not viable these days,” he said.
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Bajaj has also resorted to interlinking of CNC machines through mechanical transferring. This helps in coordinating four machines by a single worker, thus saving labour cost and time.
Sharad Aggarwal, managing director of Forgings Chemicals Industries, Jalandhar (a leading manufacturer of hand tools) said that this technology was very helpful in loading and unloading heavy components and in handling very small components.
He added that rejection of components is less when using CNC machines (since manual skill is not required).
Most SMEs in Punjab said that they had earmarked about 10 per cent of their net profits for automation.
The gradual decline in the number of migrant workers is another reason why many units are resorting to greater levels of automation. Manufacturers said they were preparing in advance to combat the labour shortage, which is likely to get more serious in future.
Ranbir Singh, director of the Hoshiarpur-based GNA Group (which manufactures automotive components) said that to meet the increasing volume of business and meet competition in the global market, automation was a must.
Most units have automated about 30 per cent of their operations. With over two lakh small and medium units in the state, complete automation of processes is expected to bring manifold increase in the value and volume of business.
The power shortage is the only area of concern for the SMEs.
“We have been making utmost efforts to introduce state-of-the-art technologies to bring Punjab to the centre-stage of industrial development of the country, but this has to be supplemented by the state government’s efforts to improve the power situation. In the absence of adequate power our investments will not bear fruit,” said Aggarwal.