A Pune-based machine tool maker has however sought to buck the trend by adopting a different strategy in order to survive in what is acknowledged to be a very tough market. Instead of manufacturing original machinery Seinumero Engineering India Ltd has carved a niche for itself by refurbishing old machines, a hitherto unexplored market.

What Seinumero essentially does is pick up the old ordinary or CNC machines and refurbish it with new sustems and controls to upgrade it. Refurbishing does not simply imply superficial changes.Instead the machinery is completely stripped down and the best available technology in the market is then adapted to it.

Thus for instance, a Moriseiki TL5 Japanese machine is redone with a Fanuc CNCN controller or Chiron machining centre from Germany is remanufactured with a Fanuc package.

While critics may dub this method as recycling second-hand machines Seinumero firmly believes that it is giving new life to workable machines. According to CL Mengale, MD, Seinumero, it is a win-win situation for both company and customer. "The machine is cost efficient and economical for those who cannot afford to buy new machiens buy need upgradation urgently," he explains.

For Seinumero the system works well since it does not call for heavy investment in creating original machines. "We are not wasting money or resources in manufacturing the complete machines. The basic machinery is available and is sturdy. Only the electrical or electronic parts become obsolete. What we do is change the electronic systems andinstall the CNC systems with current technologies."

In other words, they redesign the machine and interface the old body with new CNC systems. The refurbished machine has improved run time, uses latest technologies and offers higher flexibility all of which go on to reduce manufacturing cost.

A refurbished machine costs 40 to 50 per cent less than a new machine. Generally a seven to 10 year old machine is selected for refurbishing. Seinumero has 65 installations so far out of which 11 have been refurbished machines. The company's turnover is around Rs 8 crore and nearly one-third of this comes from machine tools while the rest flows from manufacturing components.

Seinumero's success has led to the setting up of an equal ratio joint venture with Bharat Forge called Seinumero Machine Tools Ltd for manufacturing machining components exclusively for Bharat Forge."There is a big market for refurbishing and we are very happy with the many enquiries we are receiving from companies abroad," says Mengale. Heinforms that abroad a lot of old machines lie unused as it is prohibitively expensive to refurbish them, given the cost of skilled manual labour.

Instead, available at throwaway prices from Europe and with technical skills cheaperhere, this sort of enterprise can be viable in India.