Sasaram – A Heritage City

Sasaram has been fortunate enough to be associated with many big names. The names of Shershah and Jagjivan Ram are at the top.

It is the place where Shershah, one of the most reformist emperors of India lies buried under a tomb erected in an equally unique water reservoir. As we know, a unique land settlement reform came under his rule in India before Akbar, the great. Shershah is also credited with building the Grand Trunk Road that covered all the way from Dacca to Peshawar or Kabul.




One from Bihar and that too from a village, Pipra (Mardan Rai ka) near Sasaram, its historical association with Shershah inspired me since my childhood. My grandfather narrated a miracle story of the tank in which the Shershah tomb has been built. According to my grandfather, he used to have his lodging in Sasaram, when he was one of the few students from our village in its only high school. At that time, the tank was the main source of drinking water for the residents of Sasaram. The women of Kanhar or Kamkar caste used to carry the multi-layers of pitchers with water in it drawn from the tank from the bank without getting into it in morning and evening. Bathing in the tank was strictly prohibited.

One hot summer evening, an old hermit came wandering and got into the tank to cool himself. After getting the information, a constable came in and took him to police station. It was British rule at its best. The inspector couldn’t take him to court for bail, as the court was having summer timing working up to noon only. The hermit pleaded a lot, but the inspector was scared to take the law in his hand. The hermit got angry, and cursed, ‘ You are punishing me for my crime of entering the water body used for drinking. But hereafter none will be able to use the water in the tank for drinking.’ The inspector didn’t take that seriously. Next day, the hermit was presented to the English magistrate. He warned but freed him after hearing the honest statement of the hermit. The hermit went out and disappeared. Very soon the water got greenish and undrinkable. The magistrate ordered for cleaning the tank and filling with fresh water from the incoming canal. But the trouble couldn’t be cured. The women and men shifted to other tanks. My grandfather believed in the story and recorded the same in his diary too. I don’t know if I should believe the story.

Every time I have passed through Sasaram, I try to visit the tomb. It is so gigantic. Perhaps, my grandfather had shown me this tomb for the first time, when we were going to Calcutta from the village. He impressed upon me how at the time of construction some four hundred or more years ago, the huge stone pieces forming the walls would have been lifted so high in its places during construction. Over the years, the government’s tourism or the archeological department has not done anything worth the monument deserves. The surrounding all around the tomb and tank could have been developed in a manner that could have enhanced the utility of the place for the locals as well as for the tourists. We keep on talking about ‘the shining India’ and ‘Incredible India’, but don’t do anything. I got a chance to go around and take some photographs of the Shershah’s tomb this time too when I reached Sasaram from Varanasi by road on April 20 en route to Patna where we were going to attend a family marriage. The driver of ‘Indica’ that I had courtesy Gehlot my friend from Noida agreed to take me around before going to the hotel. Before Advocate brother, Surendra Tiwari could reach the hotel we had made the trip. It was the first time that I was staying overnight in a hotel room because of my wife Yamuna’s physical problems. Bypass for the Golden Quadrilateral passing through Sasaram is still not ready. The traffic moves through the old GT Road going through the town, and the road must be nightmare for the crawling vehicles of all sorts.


Sasaram was the constituency of Babu Jagjivan Ram and now his daughter, Meira Kumar. I don’t know ‘why’ but none of them has done anything for furthering this historical town and this great monument. They visited the place and the region only for getting elected as MP and managed the win through local agents with shellfish motives or goons. Some fanatics have built a temple in one corner. The road around the tomb is in poor shape and full with filth. The tank cools now many a street urchins in the hot summer. While going around this huge monument, perhaps the most attractive one after Taj Mahal from Mediaeval India, many a times has to put a handkerchief on one’s nose.


Why can’t Sasaram be taken up for status of a world heritage town with many important historical and mythological sites in near vicinity all-round and its great history?

Why can’t Meira Kumar request her colleague of her own part and minister, Ambika Soni to take care of this unique monument through tourism ministry? Why can’t she use some her MP fund to develop the headquarter of her constituency?

Can Sasaram expect some improvements through its local bodies, and through the DM and SP who are the kings of this sleepy district headquarter?

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Varanasi, Sasaram, and Patna- Social Commitment or Outing

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We are moving out today in the evening for Varanasi. On April 16 we shall attend the ‘Tilak’ ceremony of Babloo- the eldest son of Nirmal, my cousin brother. We are staying at the guesthouse of IT-BHU courtesy Dr. Kavindra Rai, presently head of Mathematics department, while in Varanasi. I know Dr. Rai, when he was doing his Ph.D. He visited us at Hind Motor. He is the youngest brother of Laljee Rai and uncle of Ashok Rai who worked for me in HM. Tilak is basically the most important function at the house of the bridegroom side in villages in a marriage in Bihar. If it had been arranged in our village, almost every one in village would have attended. I get reminded of my uncle and his spendthrift on such occasions. But perhaps, as Nirmal has shifted to Varanasi, it was perhaps quite inconvenient for him and unnecessary too. Life in villages without electricity gets really torturous. As I hope, it will be smaller and simpler function in his house in Varanasi.

We have some more acquaintances in Varanasi that is considered the holiest and ancient most of the cities for Hindus. I shall like to show some important places to Yamuna too. We shall certainly visit Vishwanath Temple and Sankat Mochan. Both places got extensively covered in media recently because of the visit of Bachhan family. However, I have a personal liking for Sarnath, where Buddha gave his sermon after enlightenment at Boddha Gaya. I was there in year ’59 while returning from Meerrut NCC camp. It was almost a wide barren place with the ancient stupa and some built by other Southeast Asia’s Buddhist countries. But the whole place was impressive. When I visited some five years ago, I got the shock of my life. The constructions have come up to the main stupa. And that conceal its full panoramic view. My shock was similar to one when I saw constructions surrounding the Raja Rani Temple of Bhuvaneswar that I had seen in rice fields. We, Indians and our government, can’t respect and protect our heritages.

I am supposed to address the students and faculty members of mechanical engineering department and visit its facilities. I wish it helped me to know more about the younger generation going for engineering education. I shall be giving some tips from the experiences of my professional life.

We shall like to visit Vindhyachal while going to Sasaram. Big B also visited the temple recently. My uncle goes there twice a year in Navaratra. If the Goddess so wishes, we may make it. At Sasaram, for the first time, we shall be staying at hotel for the reason of our old age. It may hurt our elders in the family, specially my Mamaji who is in his eighties now. And I shall certainly like to take photographs of Shershah tombs and other places of historical importance. However, mamaji has discouraged me from visiting Rohtasgarh. As per him, it has become Naxlite-infested and is not safe according to his information. We may visit our village Pipra for a day and meet uncle and aunty returning to Sasaram in night before moving to Patna. As Yamuna is not keeping well and the climate will be a big deterrent, I can’t be there for more time though I would have liked to do that.


We shall be reaching Patna on April 21 in the afternoon, perhaps for the first time by road. The marriage ceremony of Babloo will be in the night same day. I hope to meet many of known people from the village and other relations. That is my attraction to attend this marriage. In Patna, we shall be troubling Mrs. and Mr. Janardan, my friend of IIT days as well as the father-in-law of Rajesh, my second son, as we shall be staying with them. Both are as old as we are and perhaps equally lonely and sick. However, I have a plan to show Yamuna around Patna this time including Ashoka’s Palace and Nalanda, about which I had been writing in my blog frequently.

On April 24, we are boarding Rajdhani at Patna for return to Noida reaching here on April 25.

All these days I shall be using my camera and notebook to collect exciting things, if any, of the places and people for you. However, my eyes need some rest, I am not carrying my laptop. I shall contain myself and avoid putting any entry before April 25 perhaps, unless I get really pushed by inner urge to do that. I shall be having my own cell all the time. Any one can contact me if needed, except when and wherever the Reliance Network is weak or absent

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India vs. China in Aviation: Why should India compete?

It is not only piracy; China is far ahead of India in every area.

India might have begun work on building India’s spacecraft to the moon. But the Chinese have done that already.

India invested in many units of HAL in billion in building latest technologies and capacities, but India will take at least a decade longer to develop the country’s own passenger jet. It looks silly to read that in the 11th Plan (2007-12), Indian government and aerospace scientists want to return to the drawing board to design a 70-seat passenger jet that can fly up to 2,000 km, say from Mumbai to Kolkata. India’s first indigenous light transport aircraft, the 14-18-seater Saras, is still undergoing test flights, after over a decade in development amid criticism over its excess weight and fuel consumption. As reported, ‘the plan for a ‘Made-in-India’ commercial jet has received a thumbs up from a panel of India’s top scientists in the steering committee on science and technology for the 11th Plan. Their report to the Planning Commission, submitted in December 2006, estimated the aircraft project would cost around Rs2, 035 crore over a decade. http://www.livemint.com/2007/04/10014501/MadeinIndia-passenger-jet-ge.html

As reported in Business week, China expects to start making homegrown large commercial aircraft by 2020 raising the possibility of future competition for Boeing and Airbus in the country’s booming market for new planes.

And then India has now successfully tested the 3,500-km range Agni-III ballistic missile last Thursday, taking an important step towards building a minimum credible nuclear deterrence against China. However, Agni-III still falls well short of the ICBMs (intercontinental ballistic missiles) that China has. It looks awful to read report about Agni-III providing India the option to strike even Beijing and Shanghai. Why should one think like that? In stead perhaps, it is better to have tie up with some developed country for this and use our resources for commercial jets and fighters of our own that drain our resources in billion.

As reported, China has a plethora of nuclear-capable ballistic missiles, ranging from the fully operational 8,500-km CSS-4 ICBM to the new road-mobile 11,270-km DF-31A ICBM, which even sends shivers down US spines. China also has SLBMs (submarine launched ballistic missiles) like JL-1 and the under-development JL-2 (8,000-km range). Consequently, every major city in India is within the strike envelope of Chinese missiles.

I find the competitive edge of China in these areas because of their aggressiveness in attempting whatever is necessary for the nation and getting that attained. Unfortunately Indian leadership has been lacking on that count since Nehru’s days. A culture of timely completion of all national projects must come first.
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FDI touches $15 bn in 06-07
‘From Boeings to laptops, it’s all in India’

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Hope and Disenchantment

I was hopeful for a speedy change with the coronation of Nitish Kumar on the throne of Chanakya. But after almost 16 months or more, I am getting disenchanted and restively worried for the state. I wish others were not so sensitive as I am. For how many more years will the state have to remain at the bottom of the development parameters?

Bihar chief minister Nitish Kumar announced that his government was not going to develop the Special Economic Zones (SEZs) in the state. The industries will come up only on plots, which the people will give on their own will and volition. I don’t believe that many companies on its own will be able to acquire land for any big industry. Just with the rumour of coming up of an industry in an area, many vested interests get born like mushrooms and demand all sorts of facilities, favours, and compensations. I don’t know why Nitish Kumar is to come out so strongly against SEZs. It may be politically prudent, but sends a very poor signal for the prospective sincere investors.

If I am to believe that rebuilding Bihar tops Chief Minister Nitish Kumar’s agenda, he must talk and take some fast track actions to change the perception. In the neighbouring state, Buddha had to take some unpleasant decisions but he succeeded in changing the poor perception about his state in the minds of all the big investors of the country. And that matters most for the state, and the sincere investors are queuing for his chambers in hordes even with all the bad publicity out of Nandigram episode and extremely difficult unions in the state. Recent happenings in even the dieing plant of Hindustan Motors has not deterred Tatas to change their mind about the car project that is coming up almost in the vicinity after all protests.

Similar news came about the education sector. Bihar government has expressed its inability to provide land for Kendriya Vidyalays (KVs) in the state. Bihar must keep its doors open for all sorts of educational institutes without having any egoistic compulsions. Every district and sub divisional headquarters requires good number of schools.

I keep on visiting the official sites of the government of Bihar, and its updated information on ‘Approved List of Investment Proposals’. It does not have many serious investors in it. I find number increasing but almost no further status information about progress even after 16-month-old ones too. Why can’t the department responsible keep the people informed about the progress?

The chief minister may be a good person and visionary, but it will be only the projects’ implementation that will show his success and bring the confidence of the people who will, in turn, bring him back in power. The whole state must be humming with activities of constructions, small and big. Let him understand that the opposition is not dead it may be dormant. It will be only the development touching the majority that can establish him for a longer period to fulfill his vision of Bihar.

However, I congratulate Nitish Kumar for legislating the creation of Nalanda International University and roping great economist Amartya Sen to head a panel of experts to oversee the setting up of the proposed international university at Nalanda. This single project if handled with a wider vision and faster implementation such as starting infrastructure work, can bring Bihar on the map of the world again in big way. His government has got maximum number of proposals on educational institutes and sugar mills, ethanol, and cogeneration projects. Why can’t the chief minister himself and his office see that the work on the projects gets started and facilitate to expedite that?

On a similar line, his deputy can take up the task of clearing the mesh in Patna and making it attractive enough to investors. In a recent 18 city survey done by AC Neilson-ORG Marg on 11 parameters including drainage, greenery, cleanliness and garbage disposal on the basis of citizens satisfaction levels, Patna remained in the bottom five, while Kolkata that was so poorly placed could come in the first five.

I shall go by NK Singh tips that he recommends in his article- ‘What’s good for Bihar is good for India’ in Financial Express: “Learn from others’ experience. There’s no need to re-invent the wheel in all cases. The world is full of relevant experiences, both successes and failures, to learn from.” There are many success stories for both the rural and urban development from other states that can be emulated. The government and people of Bihar must not keep on doing what others don’t like. Bihar must build on some soft power of its own.

I request Bihar’s senior ministers of central cabinet and of the state to shun fighting in public and media for petty political advantages. Don’t spoil the image of Bihar any more. As an oldman, I expect every person from Bihar to realize and appreciate this and to behave at his work in Bihar or outside in a manner that builds the positive aspect of Bihar brand.

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Hindustan Motors- Down the Memory Lanes

Since yesterday evening when we saw the news of lockout at Hindustan Motors (HM), Uttarpara plant on NDTV channel, we have been talking about the bad and good days of our life there. We lived in the factory premises known as Hind Motor for almost 35 years. When I passed on the message today in morning to Anand my youngest son in USA, he expressed his worry if he could show the place, where he was born and brought up, to Shannon, his wife. In evening, Mrs. SP Dey who was one of our neighbours there, called for inviting us to the marriage of her son Soumitra that is going to be in May. But besides talking about the bride, it was more about the situation at Hindustan Motors and its officers whom we knew. Under threat from the arrogant union activists, they have shifted to safe locations in Kolkata.

I joined HM in 1961 just after finishing IIT. The same year in October, the company had a bad labour strike and then also the company had to declare lock out. None was allowed to go in even when the lockout was lifted on insistence of the then Dr. BC Roy’s government. I went to my native place for few days and then returned. But we were signing our attendance at the registered office in Calcutta. The company started sending the employees to the plant by special trains arranged and under police protection. Fortunately, we were not asked to go in, as we were newly recruited executive trainees. The union then was of CPM and the government was of Congress. The union activists were violent and obstructed employees and managers, even assaulted some of them. After a number of attempts too, the company couldn’t get the factory in operation with all the assistance from the Congress government. Citu had developed its strength. After some days, the company yielded on some demands.

Over 37 years, I had to bear with all the unreasonable demands and demonstrations of Citu, as I was named one of the toughest managers in the history of HM even in Citu era. I was inflexible and never compromised for unreasonable demands. When we joined, the production was hardly 8-10 cars a day. In 1980s, the maximum was about 120 cars a day. But union activism had killed the discipline among the working population that is an essential factor for a quality production. The management had lost hope for resurrecting the company’s health.

In 80s again, HM had to face the strikes by Citu, and lockouts by the management a number of times. On one such an occasion that I vividly remember, the whole company premises was under floodwater, the residents were having tough time because of the shortage of essential items such as milk and vegetables, the Citu had struck work, and as usual the company declared lock out.

Today the situation is totally different. HM has lost its prestigious position of being the premier company in car production. It hardly produces 40 cars a day for taxi market and some government departments who are not allowed to buy any other make. Employees’ strength has reduced to around 4,000 from about 15,000 or more. It is just managing to run the plant, though it talks of getting into auto components. Many of the other manufacturing units such as heavy engineering and steel foundry divisions have been sold out to other companies. A bad management can’t revive a sick unit. It talks of losses, but surprisingly even in the best of years it didn’t declare any profit nor dividend. I don’t know how the promoters survive under these conditions.

The leftist union CITU is with the company today and is fighting on behalf of the company with the opposing union activists to allow the employees in, but failing to make any breakthrough. But the protesting union activists have created panic among the employees living in the residential areas just as Citu used to do in good old days of ours. Could Buddha make the union activists unlearn what they picked from their counterparts affiliated with CPM?

Few weeks back I saw an insertion in ‘Business India’.”Money is Money… And AN ASSET IS ASSET. So how does it matter whether your car plant makes money by building cars or developing real estate? It carried a photograph of CK Birla, who, as reported, has signed a deal with Bangalore based Shriram properties to redevelop 314 acres at Uttarpara Plant. The deal will fetch Rs 290 crore, and will be ploughed back into the plant on “rejuvenating and expanding the product line”.

It is difficult for me to digest the intention of the deal. The HM plant had a spread in 748 acres or more. Some of the land must have come free.

Today, Hindustan Motors declared a lockout at its Uttarpara plant following the month long labour unrest that saw repeated violence as Citu (of ruling CPM) tried to break the strike by sneaking in workers and clashed with the other plant union- Sangrami Shramik Karamchari Union (SSKU).

I am sure the stalemate will be over, but HM is almost dead. There is no point in repenting for that, as I spent the best of my life there and contributed my best. I only wish it remains running and worth visiting till Anand fulfills his wishes.
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Tripartite meet on HM impasse today
Citu drive to unlock HM

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Shipbuilding- A sector with huge employment potential

Even in 1950s when India established its first IIT at Kharagpur, it happened to have a department of naval architecture, though with an intake of a dozen or two students. I used to wonder where we they be usefully employed. To my query, my seniors told me that best ones go in shipyards abroad.

Nehru had big dreams even about shipbuilding and the shipping as such and rightly so. But over the years, the government couldn’t encourage private sectors to get into the business in big way. A few private sector shipyards were only allowed or on their own, they managed to keep on building ships, but only small vessels. And like many other heavy industries, shipbuilding grew only in public sector. Even some private ones also were nationalized. Today, the major shipyards in India, about seven or so, are all state-owned, inefficient, inambitiously managed, lossmaking, and surviving on budgetary support. While the three neighbouring countries of Asia- Korea, Japan, and China today control roughly 86% of the global market size of $109 billion (2006), Indian shipbuilders have a share of 0.35%. While the trio delivered ships with 60 million tonne-capacity in 2006, India could do a piffling 0.5 million tones. The world capacity of ships in 2005 was 966.5 million tones. One can imagine the addition because of booming shipping industry because of many factors such a replacement of single hull ships by now mandatory double hull ships, race for energy security by creating huge emergency oil reserves, demand of increasing transportation of steel, iron ores and coal.

Shipbuilding is a highly labour-intensive industry and ship repairing is even more so. Major skills required for shipbuilding are conventional welding, fitting, electricals and plumbing, and Indian has plenty of it.

When liberalization abolished industrial licensing in 90s, some such as Bharti Shipyard and ABG Shipyard came up, but couldn’t grow big because of the Asian financial crisis resulting the collapse of demand for ships. However, presently the demand for ships is booming. Indian shipbuilders don’t have capacity to cash on the global demand.

But several companies have come out with plans on construction of big shipyards:

ABG has set up a major shipyard costing Rs 1,600 crore at Dahej, Gujarat, to build up to 25 ships a year.

Sea King is setting up a shipyard at Pipavav, Gujarat, to build ships of up to 300,000 deadweight tonnage (dwt). As claimed, Pipavav Shipyard will be among the ten biggest in the world. The company has already bagged two advance orders worth $720 million to manufacture ships for Z Schifenbau of Germany and B F Shipping of Cyprus.

Bharati Shipyard is investing Rs 450 crore in a Greenfield shipbuilding unit at Mangalore.

PK Ruia group now proposes a mammoth shipyard at Haldia costing over Rs 3,000 crore, that will be among the biggest in the world, building 12 ships a year of Panamax size (the maximum size that can go through the Panama Canal). The project will employ as many as 16,000 workers.

The Adani groups have announced investments in shipbuilding facilities which total over Rs 5,500 crore at Mundra in Kutch, adjacent to its new deep-water port there.

Tata Steel plans a shipyard at its new coast-based plant in Orissa. Tata Steel has just formed a joint shipping line with NYK of Japan, and the shipyard will be a link between its steel and shipping business.

The ministry of defence (navy) has very lately and rightly decided to source the bulk of its requirement from the private sector.

L&T is expanding its shipbuilding business, which includes warships. L&T manufactures already parts of submarines and soon plans to build entire submarines. Other private sector defence suppliers may conceivably get into naval vessels and equipment.

Even the government has woken up and has plans to set up two global size ship building yards one each on the east and west coast in public-private partnership.

But India’s ship components industry is hardly developed necessitating the import of nearly 80% of the ship components from developed countries annually. It may require a special encouragement from the government for the existing ones to expand and new ones to enter, instead of making import duty-free. Many heavy engineering enterprises lying idle can diversify and get into the ship components business. It is essential technically for logistic cost advantages. For example, Japan gets 97.85% of the ship components from domestic plants.

As reported, currently the designs are purchased from overseas. Where have our own naval architects gone? Some entrepreneurs must set up a ship design center of world class that can cater to the ship builders with latest technologies. That must be aimed at as India’s differentiating and winning factor.

With globally reputed marine engineers, naval architects, and managers India can easily have a globally competitive shipbuilding in its private sector with huge employment potential. Many believe that India may target a shipbuilding industry to around $20 billion by 2020.

Shipbuilding dominated by Europe and North America till early 20th centuries lost to Japan by ’60s to become the top ship-builder. And then emerged South Korea, Taiwan and Singapore as major builders. However, as in other manufacturing shipbuilding too is shifting to China. Why can’t it now shift to India?

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Frugal Manufacturing- Is it a Chinese Nomenclature?

I came to know of the term ‘frugal manufacturing’ after the news reporters wrote about the interview of Carlos Ghosn, the legendary boss of Renault Motors, France. He talked so highly about the frugal manufacturing that has been mastered by Indian engineers. I started thinking if it is another term meaning basically the famed ‘lean manufacturing’ of Toyota Production Systems. However, I decided to resort to goggle to help me. Here are some excerpts that may be of use to those in manufacturing.

As defined, ‘frugal manufacturing means that our manufacturing processes must embody the basic principles of saving resources and being environmentally friendly.’ Be it the processes in manufacturing petrochemicals or steel alloys, the basic objective must consider how to avoid or minimize waste. For this purpose, all the waste gas and water required in the process must be utilized comprehensively and recovered. Heat from all the processes must be fully utilized.

Similar developments have come in shaping of components and parts. Semi-finished products can be directly forged into shapes close to those of the final products, leaving only a little final processing to be done. Precision forging, and lost foam casting- investment casting have cut down the number of steps to reach the final precision dimensions required for the assembly. Waste material generated during the machining operations to reach the final dimensions have reduced.

Even gear teeth of component such as differential gears and pinions are rolled eliminating the cutting and finishing processes. Parts shaped out of metal powder under a thermal quasi-static pressure are precise enough to be used directly or with a minimal machining in assembly. Some specific metals, such as aluminum alloy, can be directly forged to the required shape in a process called semi-solid shaping. The surfaces of such products need no processing.

Presented below is the concept of frugal manufacturing in automobile manufacturing by one Chinese expert.

Product design must ensure energy conservation. For instance, the manufacturing technology for a certain model car may be very advanced and its manufacture may waste very little resources, but if its engine technology is not very advanced and it has high oil consumption, it is not an energy-conserving product. Therefore, in all manufacturing industries, ensuring the lowest possible consumption of energy and resources in the use of their products must be considered together with conservation of resources and energy in the production process when we are designing a product. It can be said that a good manufacturing engineer acknowledges this as a basic principle, but quite often fine divisions within the profession and the lack of mutual communication makes it difficult to comprehensively address all these issues, and various problems arise. For example, the key to getting an automobile to save oil lies in the efficiency of the engine, but it is not just a problem of engine engineering. It also involves body design, the air resistance coefficient, the selection of materials for the various parts, and the weight of its chassis and shell. All these things are done by different departments and engineers. When they are integrated in the end, all requests are taken into account. When I was working in Sweden, I saw a Volvo billboard on which was written, “You can put a Volvo truck on a Volvo car without crushing the car.” This shows how strong the Volvo car is. By contrast, if you press to hard on the hood of a Japanese car when you’re waxing it, you’ll put a dent in it. When designing a car, Japanese put economy first. The whole car is very light and gets great gas mileage. Swedes are proud of their heavy and strong cars. The German Mercedes Benz has the heaviest chassis in the world. The Mercedes Benz Company once did a test in which they put a Mercedes in the middle of a seven car chain with an American, South Korean and Japanese car in front and in back of it on an expressway and then initiated a chain reaction crash. The other six cars were flattened but the Mercedes retained its shape, chiefly because its chassis is heavy and the body is very strong and resists compression. Seen from today’s point of view, this idea does not completely conform to the requirement of frugality and is not entirely conservative. When making cars, Japan and South Korea give greater consideration to saving energy and resources. America cars are a compromise in which economy is balanced against stability and reliance. Therefore, our products design must be guided by a comprehensive scientific outlook on development.

Third, when making a product, we must take into account its disassembly and the sorting and recycling of its parts when it is scrapped, not just the convenience of the manufacturing process, in order to create a frugal society. Nowadays, we are confronted with a significant problem, the problem of what to do with discarded electronic products. All electronic products contain large quantities of various kinds of metals, including precious and rare metals. They are very valuable and they are scattered throughout the products. In addition, most of them were welded in, making it difficult to extract them when the product is scrapped. This is a big problem, another aspect of which is the problem with the sealing, dismantling, recycling and maintenance of the coolants in home appliances like air conditioners and refrigerators.

On the whole, the guiding principle for our whole manufacturing industry must take into account what is helpful to creating a frugal and environment-friendly society. At present, China’s industrial sector is growing rapidly. The manufacturing industry has always been dominant (making up 38% of GDP). In another 15 or 20 years, the manufacturing industry will still be a major sector as well as a big consumer of energy resources. Therefore, the manufacturing industry must shoulder this responsibility and create a frugal society in all respects.

Recently, many countries have enacted laws concerning product recycling. In addition to considering conservation in the design, manufacturing technology, materials selection and product use, there is still a very important issue, using materials as fully as possible through recycling, circulation and reuse of waste materials. The United States, for instance, has legislation concerning recycling auto parts. I believe that if we have such a conception of frugal manufacturing and form an accompanying set of technologies and a design philosophy, then we will have the basis for such legislation, and can prompt our government to pass such legislation.

There is nothing new in what the Chinese are talking. Have they faked ‘lean manufacturing’ too?

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An Address to Mechanical Engineering Students

We had two professors at IIT, Kharagpur who were the alumni of engineering college of BHU of those days. Prof. Belgaonkar was the head of mechanical engineering when I was in IIT, Kharagpur. Prof Rajendra Misra headed the production engineering and management which was the part of mechanical engineering then. Mechanical engineering was the most sought after branch in those days in the only IIT of the time. I had some colleagues too from BHU at HM. That was the reason I thought I shall visit and talk to you.

After IIT, I joined the automobile company- the pioneer of the era, and remained with it for almost 36 years. I was fortunate to know about the automobile manufacturing in totality because of our connection with the biggest in business GM and its allied companies in Germany. UK and then Japan such as Isuzu Motors. I was also exposed to Mitsubishi Motors when HM built its car plant in Chennai. I was responsible for all the new projects after a long inning in production. production engineering, and other technical services.

Auto sector went through three clear cut phases since independence. Prior to Maruti entry (1982-1983), it was a monopoly of two big business families that were manipulating between themselves and used to produce around 40,000 cars at maximum in a year. With Maruti, the monopoly gradually ended. The big reason of the success of Maruti Udyog was also its link to the first family of the country’s dynastic ruling party. Real change came after liberalization of economic policies of 90s. Many rather all global car manufacturers entered the Indian market. But the major historic decision for the sector came from Tatas to enter passenger car market and its remarkable success with Indica. Today the country manufactures about a billion plus cars.

What does the car manufacturing mean? Very simply, it consists of assembly and testing of cars on scale varying from few thousands to a lac or more a year. Naturally the entry cars such as Maruti 800, Indica or Santro with annual production of more than 1,00,000 are having higher in-house manufacturing using large scale production techniques. For low volume, the manufacturers prefer to import from the parent plants and only fabricate, paint and assemble.

Car manufacturing comprises two clear group of components- power train and body.

The power trains are mainly mechanical parts, where major components such as cylinder blocks and heads for engines and housings for transmissions are manufactured in house and the rest such as filters, pumps are procured from local or foreign vendors. Many automakers for large scale production models manufacture the parts, assemble and test the power train units in house. But some, where the volume is low still import or buy from local suppliers.

Car body constitutes of sheet metal panels requiring stampings. Car body is fabricated and finished in various shops – body weld shop, painting facilities, car assembly and testing areas.

In every area of manufacturing, many specialized improvement of technologies have contributed to make the facilities flexible to accommodate the changes required. Perhaps Toyota is a single company that has contributed the maximum in perfecting the tools and techniques used in most efficient car manufacturing today.

Mechanical engineers today have a great scope with auto sector- both OEMs as well as component manufacturers. Alluring areas may be design and development, and production engineering and other industrial engineering services. And with thrust on manufacturing to compete with China and for its capability to create large scale employment, auto sector is growing pretty fast. By 2015, perhaps India will be building 3 million cars.

But all are expected out of the engineering colleges and institutes? All top institutes are trying to build a culture of entrepreneurship and innovation among its students and their success in these areas are the measure of their maturity and excellence. IITs have now incubators with assistance from the venture capitalists who are eagerly looking to the younger generation to come out with ideas that can be backed financially. ISB has Wadhwani Centre for Entrepreneurial Development (WCED) to teach entrepreneurship. ISB is unique as a majority of the students are already with five to six years of managerial experience. Similar centers are getting initiated at other IIMs, IITs, and other institutes of excellence too. As reported, more and more students are going for their own enterprises rather than joining a global company with hefty paypackets.

Interest in innovation must be key of any specialized knowledge and learning. It should rather form part of the national character. The basics for innovative outlook must be known to all- from the first-line-worker to the CEO and that can only improve the product and processes, including services. Innovations mean needs to save time, reduce cost, things faster, make things easier to use, improve safety and reliability, and lessen impact on the environment. Is it not the responsibility of all involved in any task that he is assigned to, be he a housewife or prime minister to innovate for better products and processes?

Today, for all aspiring engineers, there are huge potentials.
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It is not only Mittal and Son, it is Jaspal Sandhu too.

Good Communication Matters, but not taught.

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Indian Auto Industry – Two New Alliances

France headquartered Renault, one among the top 10 carmakers in the world that rolls out over 2 million vehicles every year and Mumbai-based tractor and particularly popular ‘Scorpio’ utility vehicle manufacturer Mahindra & Mahindra (M&M) through their joint venture Mahindra Renault launched last week their first car model Logan in the Indian market within two years of forming their 51:49 alliance.

As it appears from the media, this alliance spearheaded by the legend of the global car industry, Renault’s CEO Carlos Ghosn and M&M’s charismatic managing director Anand Mahindra may well set the future for joint ventures in India’s fast growing automobile business. The auto industry may leave behind the history of many failed alliances of the first phase.

If the media can be believed, Ghosn who has worked in the world’s three largest car markets-US, Europe and Japan – was clearly in awe of Indian engineering, when he found the Indian counterpart managed to shave 15% off the Logan’s production costs over and above what Renault initially planned. Ghosn thought his company had done a pretty good job with it. So came his compliments when he was present in Nasik with Anand Mahindra to inaugurate the facility. ”But the Indian engineer innovate and create a product frugally. Engineers in other parts of the world always need more resources to do the same thing… They (global automobile companies) will have to show the humility to come into this country and learn. It isn’t possible to demonstrate such innovation when you work out of markets where resources are not at a premium… Sure, capital costs are huge issue in this business. But we are discovering through our partnership with M&M that the level of investment for a specific objective can be done frugally.” Mahindra and Renault will produce 50,000 Logans M&M’s facility in Nashik. The new venture has invested in setting up a stamping shop, a paint shop with pre-treatment facility and an assembly line dedicated to Logan. (Making of Logan in India)

Carlos, a global auto industry legend for reviving Nissan Motor of Japan, in which Renault is the single largest shareholder, appeared to be very much impressed with India’s expertise in frugal manufacturing. He further added candidly, “China is also a low-cost manufacturer. But there is something unique about India’s frugality of engineering and management. If I have to fight the battle on low cost, I am going to do it (with a base) in India. It will be difficult to develop a low-cost car of the future without involving India. The benchmark of low-cost manufacturing: If you want to be serious in India, you must not cross $3,000 in product cost. Ratan Tata’s Rs 1 lakh car: It is a very interesting project. We will be watching it closely.”

As reported, the joint venture Mahindra Renault has invested only Rs 700 crore in facilities and reengineering to roll out the Logan compared to the Rs 1,600 crore, Tata Motors spent on building the first version of Indica. However, the cost for Indica is no comparison as it was a totally new car, and for Logan, it is just adaptation for Indian market by developing the right hand version of the Logan.

Let me confess I heard the term ‘frugal manufacturing’ for the first time and more so as it came from a person as famous as Ghosn. Perhaps ‘frugal’ is a synonym of ‘lean’. Ghosn meant the lean manufacturing by frugal manufacturing. Am I correct? I stand to be corrected if I am wrong.

Another big news came from Pune. On April 02, 2007, the 50:50 joint venture between Fiat Auto India and Tata Motors – was formally inaugurated with an announcement of an investment of Rs 4,000 crore (660 million euro) at the Ranjangaon (60 km from Pune) plant over the next five years. The first stage of investment will be of around Rs 2,500 crore (470 million euro) out of which Rs 1,500 crore (250 million euro) will be for the car plant. The plant will start production of passenger cars, engines and powertrains around the middle of 2008. The company has planned to make 1,00,000 cars and 2,00,000 engines and powertrains.

With these two alliances, both the Indian automakers are aiming to extend its presence globally assisting each other mutually with its strength. With consolidation over the last few years, the Indian automakers are technically strong enough to move on as equal partners. Mahindra & Mahindra with its successful Scorpio and Tata Motors with its Indica platform and Ace have proven its strength as OEMs unlike the Chinese automakers still known more for piracy.

The two alliances are in line with the trends of business strategies all over the world.

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`Indian connection a must for low cost car manufacturing’
A no-nonsense car, anyone?
New York auto show gets into gear

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Chinamania

You must have seen my entry- China Invades India’s Manufacturing Sectors’. That got published in Patnadaily.com too. While my blog didn’t attract comments (now I have inserted the ones from Patnadaily.com), there were some critical ones on the later site.

‘The article does amuse me a bit because so many years have passed and still some people write such article which should be written 10 or 15 years ago…– ‘They can make final product even cheaper than the cost that you pay for raw material because buying large quantity is always cheaper than buy small amount. It is not dumping but Chinese simply work hard and smart.’ This was in a long comment from one Dake Yu. I don’t know if ACMA members would agree to this logic.

Another comment from Mr. SS Sharma having business background was equally revealing.

” I am all for Chinese imports. I can relate objection to Chinese imports only with racism and not with protecting interest of Indian manufacturers as our own Indian Customs and excise have assured that genuine manufacturers are adequately harassed in India. If India seriously wants to compete with China then rather than offering SEZs to neo colonialists it should ease the rules of Customs and excise in general so that whoever wishes can start and run manufacturing business smoothly.’ It goes father, “Recently my office in UK received a bulk order for manufacturing some electronic devices from a renowned company. Here is part of two quotations one received by my Indian office from an Indian supplier and second received by my Hong Kong office from a Chinese supplier for the sub assemblies of the same order. It tells every thing at once.

Indian Supplier, Terms & Conditions:-

Excise Duty :- 16%
Ecess :-3 % on Excise
VAT :- 4%
Octroi :- 3 %
Payment :- 50 % advance 50 % against delivery
SPECIAL NOTE :-
PLEASE DECLARE THE DESIGNING COST IN YOUR PURCHASE ORDER
BECAUSE IT ATTRACTS 16% EXCISE DUTY ON DESIGNING COST
AND YOU CAN AVAIL THE CENVAT ON THE SAME.

Chinese Supplier:
Call me if you have any problem

I have removed the actual quote amount and other details for commercial reasons but Indian Supplier had quoted double the price of Chinese supplier besides quotation of Indian supplier had lot of extra ‘%’ sign. Obviously after saying ‘Resurgent India, India shining etc’, sitting in my UK office, I forwarded the order to my Hong Kong office to process.” Will some one from the administration replies to these frustrating conditions and PM and FM will find a way out? How can the country come back in manufacturing without that?

However, my main points in the article were:

Indian traders must not adopt unfair means of changing the description of the items to attract less import duty in their invoices and must not manipulate the values of the invoices.

Indian government must have a rational import duty for raw materials and finished goods.

Chinese must not sell rather Indian traders must not buy the products rejected by Americans and EU countries and sell it to Indian customers.

Chinese must not copy the traditional handicrafts and handloom items such as Kanchivaram and Banarasi silk sarees that is sold by unscrupulous Indian traders as original.

Chinese must not put ‘Made In India’ mark on their products.

Chinese government must not subsidise the export to make it competitive. How can the cost of a product be less than the cost of the raw materials used in it?


And none who put their comments talked about it.

It is known to every one that it was American retail biggies such as Wal-Mart that developed the low cost manufacturing capabilities of China by providing all inputs, as the American manufacturers couldn’t have reduced the labour cost in US because of headstrong unions. EU countries also followed the American solution to go to China. India’s manufacturing sector was not ready to meet the American demand at that time. However, the things have changed and changing fast in favour of India in manufacturing sector too. At least in some sector such as auto components and textiles, Indian manufacturing may succeed, as Indian manufacturers intend to fight the competition from China.
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Piracy Move on China Seen as Near

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