 "Mario Schmidt, MD, Lingel Windows & Doors Technologies")
Rise in new housing construction activities (especially of high-end segment) is driving the demand for uPVC (unplasticised polyvinyl chloride) doors and windows in India. Besides being highly durable and thermal, water- and wind-resistant, uPVC doors and windows are energy efficient potentially saving energy up to 25 percent to 30 percent.
Gaining on this growth momentum is Lingel, a German manufacturer that provides one-of-a-kind uPVC windows. According to Mario Schmidt, managing director, Lingel Windows & Doors Technologies Pvt Ltd, the government’s plans to build 100 smart cities is expected to propel the demand for uPVC windows manifold in the country. Mario Schmidt has been at the helm of affairs of Lingel’s India business since its inception in 2006.
In this interview with Rakesh Rao, he provides an insight into uPVC windows market and growth strategy for his company.
How has been the progress of Lingel business in India?
Opening a whole new business window in 2006, Lingel India continues to build a safe and sound environment in the Indian sub-continent and remains one of the leading manufacturers in the world of fenestration services. The brand's products play a critical role in conserving energy in a world that is growing in population with an ever-increasing demand for water, food, shelter, sanitation, energy, health services and economic security.
Since 2006, Lingel has opened sales offices in almost every location across the country. In India, Lingel remains as one of the pioneering German companies to design customised solutions for windows, internal and external doors, kitchen, security and facility needs as per the Indian environment and in tune with the consumer needs of the country.
Being secure, insulated and durable, uPVC doors are designed keeping the latest global trends in mind and have styles that are unique and innovative. From casement, French, entrance to balcony, sliding, tilt & slide and sliding folding, there is possibly every kind of premium doors available.
In India, uPVC still has a low penetration in overall doors and windows market. Do you see it changing?
Unplasticised polyvinyl chloride (uPVC) windows were introduced in India just 12 years back. We entered the Indian market at the right time in 2006. People had no knowledge about uPVC windows and we introduced this new concept and system.
It is not true that uPVC has a low penetration if you consider the entire sub-continent. It may be true for Delhi or Northern India. But in Bangalore and other south Indian cities uPVC is widely used. People in states like Goa and Kerala have realised that wood is not the kind of product that is suited for the climate. People have started using uPVC and wood finish uPVC windows. From a distance of 10 feet no one can tell the difference if it is a wood window or a wood finish uPVC window.
How big is the estimated market for uPVC doors and windows in India?
In 2006, there were hardly five competitors and currently, there are about 500 competitors in the market. We are the only German company and we manufacture the complete product while our competitors may only make the profile. We estimate the overall industry size to be around Rs 1,500 crore.
What are the key issues and challenges before the uPVC door and window fabricators in India?
In the past ten years, we have progressed a lot in in-house designing and manufacturing system especially the hardware system. Initially, the products were manufactured and designed in Germany which was not suitable for the harsh Indian climate. This also had an impact on the products cost. The product had the tendency to rust in coastal areas. So we decided to design and manufacture, keeping in mind the Indian weather conditions. We started manufacturing our own series in which all the hardware is made of steel SS 304 and SS 316 for coastal areas since it is rust-free. As per the needs, we put together systems for the benefit of our customers. The customers get the best windows from the best profiles and hardware. The components are fabricated in the right way which is beneficial.
What is driving the demands for your products in the country?
Our products are tailor-made and we cater to their needs and specifications as required. For us, it is important to have the right system in place. The fenestration industry usually struggles because we have too many touch points with our customer and all are important. Therefore, our main focus runs on our human resource, because it is the human and not the machine working with the customer.
We do have all machines which are imported from Germany and due to that the fabrication process is the ‘smallest part’ of our turn key service.
But our main focus moves towards the customer/consumer. From sales and marketing, architect visits, consultancy site measurements, and installation is where we have developed our unique strength within the industry.
Indian government has announced initiatives such as Housing for All, Smart Cities, etc. Will these initiatives propel demand for uPVC doors and windows in the country?
For the 100 announced smart cities pan India, I personally see a huge demand for uPVC windows. But for the affordable low-end housing segment, pricing will be still a big challenge.
Considering all the inputs on special raw material, I do not see currently any scope of reduction in prices without lowering of purchase cost of materials such as PVC/reinforcement EPDM and glass.
Are there any plans for capacity expansion in near future?
Lingel had a continued expansion over the last 10 years. To keep overheads low and product quality at the highest possible level, we did all developments within our production facility in Bhiwadi (Rajasthan). The next move will be to start the new production line for fabrication of high-end aluminium windows and doors.
What is your short and long term growth plans for your business in India?
The company and the window industry has seen the same growth curves in the past years.
The industry has grown from Rs 600 in 2006 to Rs 1,500 crores in 2015. Our company is also growing at the same pace.
We aim to increase our production from the current 2000 units per week to 3000 units by 2017. The company is also planning to launch India’s first smart windows by next year. By 2020, we want to have the same volume with our aluminium products like our uPVC products. We have to put all our efforts towards the same.
We also aim to increase our market share from present 2 percent to 7.5 percent by the first fiscal of 2020.
