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Monday, October 26, 1998

Twin's peculiar problem of plenty 

Geeta Nair  
Pune, Oct 25: Size can be the biggest advantage of being small. For instance, it is easier for smaller business outfits to change track quickly and adapt to new situations. Smaller units can offer customised solutions and satisfy clients whose demands are constantly changing. It is this agility that gives small units an edge over bigger players and makes them effective niche companies in an industry. However, strength can also turn into weakness and small can turn out to be a major disadvantage if the unit is aiming for growth and an expanding market for its products. This was exactly the dilemma faced by Pune-based Twin Engineers Pvt Ltd. And helping Twin find a solution, Institute of Management Developement and Research, a management institute in Pune was roped in for expert advice.

Twin promoted by Pradeep Bhalvankar is into manufacturing dispensing machines since October 1990. These machines are used in the automobile, autocomponent, electrical and electrical component industries. In a business whichhas few Indian players, Twin has developed an expertise in designing and manufacturing hi-tech machinery according to specifications made by clients.

A part of the funding for the project came from TDICI which saw in Twin the potential to fill a need. Twin's range of machines includes the single component adhesive disoensing machine application for application of epoxies, fastener coatings, urethanes, silicones, cynoacrylates and grease.

There is also the two component meter-mix dispensing machine for precision potting, encapsulation and foaming of epoxies, urethanes and silicones. Twin's catalogue also features fluid filling machines for filling brake oil, radiator water, windshield washer filling machine and transmission oil filling machine. For curing adhesives used in screen printing of PCBs it makes curing machines and infra-red reflow soldiering machines for soldering surface mounting devices in PCBs. Finally, there are the special purpose machines and custom-developed machines in the company'sproduct line.

Part of the popularity of the automatic dispensing machines lies in the fact that they help in the efficient use of material, reduce manufacturing cycle time, cut cost, offer a clean work environment and eliminate operator contact with the material thereby leading to quality control. These machines are used when production systems are being automated.

With this kind of range, Twin has built a customer base of 500 in India and globally Telco, Bajaj Auto, BPL, Hyundai Motors, Siemens, Videocon and Tandon Group of companies are among Twin's clients. It has developed 30 import substitute machines and applied for patent for two of these first-of-its-kind machines.

While the performance is impressive on the technology front, the company has not been able to grow in size as may have been expected especially considering the fact that it is the only Indian manufacturer offering these products. Explains Bhalwankar, managing director, Twin, "Volumes are not large as the users of these machines arelimited so we focussed on offering custom-built machines." Indian industry has not been using adhesive-based technologies as it prefers the old manufacturing style of using welding or riveting. It is only of late that industry has started to switch over to adhesives especially the automobile and electrical-electronic sectors. So Twin has had to educate its customers and offer them customised solutions.For Twin this has meant that every product demanded the devotion of a huge amount of time, labour and resources. For developing the product right from the concept stage to the designing, engineering and manufacturing stages heavy R&D expenses were called for. "Every order meant going through the entire process from scratch without being able to capitalise on the earlier product and technology development," points out Bhalwankar.

So while making adhesive machines was Twin's strength it was one that could not be capitalised upon. It handled diverse products ranging from blood filling machien for Hindustan Latex,gasketing machine for Tata Cummins to making a machine for filling cracks in the Hirakud Dam. Each of these assignments were a technological challenge and Twin was able to deliver solutions thanks to its R&D. But the margins on customised machines are wafer thin. In 1996-97 the turnover was Rs 1.25 crore which went up to only Rs 2 crore during last year. Worried by this pace, Bhalwankar finally knocked on the doors of the Institute of Management Developement and Research (IMDR) in search of a solution. The team of three from IMDR - Gopal Iyengar, AP Bhupatkar and SP Kandalgaonkar - felt that Twin had a proliferation of highly customised products which resulted in organisational stress while coping with variety.

Moreover, Twin's operation was a one-man show with the MD shouldering most of the responsiblities. Product variety was also making it difficult to streamline operations. As Twin did not have standard products there was no real marketing being done. The organisation was undertaking all kinds ofactivity without trying to find out whether these were synergistic with existing operations.

IMDR worked with the MD and got him to articulate his vision of the organisation and business objectives. Twin's business managers and other executives were involved at a later stage and an organisational development exercise was carried out by IMDR. The trio arrived at a strategic focus for the organsiation which would give a direction to the firm as well as rationalise product mix.

Among the main suggestions was one to focus on single and twin component machines which were recognised as Twin's core strength. Twin had built up an expertise in infrared and special filling machines which could be developed further by setting up another company for this purpose. The team suggested that Twin should move to influence market and get orders for its product line rather than meet all the requirements of the market.

Operations could be consolidated only through standard product offering and not customisation. Bhalwankaris now in the process of implementing the strategic plan documentation and hopes it will provide the critical inputs for future growth.

"We are int he take-off stage and hope to increase turnvoer to the Rs 10 crore-mark in the next three years," he says optimistically.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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