In the best-selling “Lexus and Olive Tree” dealing with globalization, author Thomas Friedman describes India as a rapidly growing country with a globalized economy. The low cost of labor, information technology (IT) networks and the ability to communicate in English make global companies call ahead. Even after more than a decade since 2000, India has been recognized as a “frame” set by Friedman.
But Prime Minister Narendra Mody, who took office in May 2014, has chosen a new route.
He put the so-called ‘Make in India’ as the first policy to make manufacturing a driving force for economic growth. Through its ‘Make-in India’, Modi will nurture 25 manufacturing sectors such as automobiles, railways, defense industry and aerospace to increase the proportion of manufacturing in the GDP from 15% to 25% by 2022, I set a goal to make a billion.
One of the top beneficiaries of the ‘make-in india’ policy is Mahindra and Mahindra, a ‘national company’ in India, which is driving a sport utility vehicle (SUV) giant. I took a look at the ‘Make-in India’ scene through Mahindra, well-known as a company that acquired Ssangyong Motors in Korea.
In mid-February, the Chakan Industrial Complex near Pune City, which ran for about 135 km by car from Mumbai, India’s largest economic city.
Amongst the well-worn roads are the latest factory buildings.
Except for the fields, the ‘world outside’ was unfolded in the scenery that was in the middle of nowhere. Six automakers, including General Motors (GM), Volkswagen of Germany, India Tata and Bajazoo Otto, and about 140 partner companies were located. At the center of the industrial complex is a Mahindra Chacan plant of 2.8 million square meters.
In the production line, the small SUV ‘KUV100’ and the medium SUV ‘TUV300’ were running on a single conveyor belt. Line-up employees diligently fitted the door to suit the vehicle and thoroughly checked it. The biggest advantage of the Chakan plant with an annual production capacity of 300,000 is the ‘mixed production system’. Mixed production refers to the simultaneous production of vehicles of different sizes on one production line.
Mahindra has invested 670 billion won in September 2014 to boost the production capacity of the Chacan plant when the Prime Minister of Moldy launched the ‘Make-in India’ campaign. In the following year, the company launched eight new models, including the latest SUVs, commercial vehicles (pick-up trucks) and vans. Ssangyong Rexon, which is classified as high priced, has customized customized production system.
“In India, there are not many production lines that make many different kinds of vehicles at once,” said Mi Lindvit, Mahindra Chan, director of quality control at the plant. “We can produce flexible production according to market demand, and the defect rate is close to zero.”
The most striking thing is the potential. 89% of the workers here are under 26 years old and their youthfulness in the factory is overflowing. The monthly average wage of factory workers is estimated to be more than half that of China. The automobile production level is fast catching up with developed countries such as the US, Japan and Korea. Korean automakers have almost unionized strikes, but the Mahindra Khan plant has not suffered any labor disputes since it was established in 2009. “We are proud that our employees are producing ‘durable and tough cars’ because of the company’s manufacturing capabilities,” said Bitton. “The company has been strengthening its skinship so many times a month that it talks about production and its employees. “He said.
Mahindra Research Valley is located in southeastern Chennai, about two hours by plane from Mumbai.
Mahindra’s ‘R & D hub’ is composed of about 1500 highly educated engineers. The Mahindra Research Valley is located in Mahindra World City, about 60 km from the city center of Chennai, which is a real estate development company of Mahindra Group, which is about 6.27 million square meters, about twice the size of Yeouido. I have developed it and it is in it. Mahindra’s leading SUVs, such as the KUV100 (small), TUV300 (medium) and XUV500 (large), all came from their own technology developed in the Mahindra Research Valley.
Mahindra has surpassed its domestic competitor Tata Group in the number of cars sold, and has been ranked in the ‘Big 3’ with Japanese Suzuki subsidiaries Maruti Suzuki and Korean Hyundai Motor. Especially, 60% of SUVs sold in India last year were vehicles produced by Mahindra. It is most active in the development of electric vehicles among Indian companies, and recently it has been exporting to the United States, South America, Australia, and New Zealand.
Mahindra is considered to be a role model of the ‘Make-in India’ policy. The company is expanding its operations in the manufacturing sector by acquiring the Peugeot Motorcycle of the PSA Group of France as well as the French Peugeot Motorcycle and working with European Airbus to produce helicopters and military helicopters in India Mahindra is a private company, Of the total population. It is Mahindra employees’ common voice that India’s economic growth is impossible without manufacturing.
At the entrance to Mumbai’s Kandy Bali factory where Mr. Pawan Gonca, who oversees the Mahindra automotive business, is staying, there is a cog wheel lion exhibited by Moody’s ‘Make in India’ campaign.
PricewaterhouseCoopers (PwC), a global accounting consulting firm, said that “India’s middle class will grow to become the second largest market after China, reaching 570,000 by 2021.” In 2050, It is estimated that it will double in number from 7% to 15%, leading the US ahead of China (20%) and number two “.