A.T.E., a one-stop shop for entire machinery range
A.T.E. is a perfect example of a professionally run family owned business. This has been the biggest strength of this seven-decade-old company. The various business units are headed by professionals who have a great sense of ownership and commitment.
Much of A.T.E’s success in the last few decades, both in the Indian domestic and export markets, can be attributed to the role of Mr. Gurudas V. Aras as the Director of the Textile Engineering Group. The individual business heads under the dynamic leadership of Mr. Aras have ensured that A.T.E. and its principals are the most preferred source for machineries and components for Indian customers.
THE TEXTILE MAGAZINE: How is business at A.T.E. – Textile Engineering Group (TEG)?
G.V. ARAS: The year 2011-12 was a mixed one. Overall A.T.E. could do quite well in spite of the turmoil in the textile industry due to cotton and yarn price volatility during the year, thanks to the robust order book carried from the pre-turmoil period. Some segments like spinning and fabric forming did very well while processing was somewhat subdued due to lack of investments. Warp knitting business saw a lot of investments from the Surat region.
The business in 2012-13 so far is slow in certain segments like spinning, circular knitting and garments. However it is quite encouraging in the areas of weaving preparation, warp knitting and processing. The accessories business, in the spinning and processing areas, have been quite steady.
TM: What were the significant developments in TEG during recent times?
ARAS: During the last year we started new business divisions in TEG, namely, garment machinery, processing accessories, synthetic machinery and carpet machinery. All these new divisions did very well except synthetic machinery wherein we focused on consolidation with addition of a new principal for POY/FDY lines. In synthetic machinery, the business will start from the new year. Garment machinery and carpet machinery laid very strong foundation for the business to grow. The most important development of the year was acquisition of SKF spinning components business and the successful launch of the ‘TeraSpin’ brand. During the year, we also launched our quarterly E-magazine ‘CommunnicATE’, which received tremendous response from customers.
In the current year, we will mainly focus on consolidation of the new business areas as well as new agencies. The only addition this year has been of Lacom from Germany for coating and laminating machinery, as we see good potential for this area of value addition across all the substrates.
TM: Within TEG, which are the key product segments that are witnessing significant growth in the last few years? How do you see future growth potential in each of these segments?
ARAS: In the last few years spinning, warp knitting and weaving preparation businesses have been growing significantly. However for the last few months, the pace of growth in spinning has slowed down considerably whereas warp preparation and warp knitting businesses are still having quite a robust growth. Nonwovens business is steady as not much investments are forthcoming. The carpet segment is developing gradually, and we, being the only complete solution provider, expect to benefit from the forthcoming investments. Processing business has been steady but not much investments are forthcoming in spite of the fact that under the Five-Year Plan, at least 300 new process houses are expected to be set up and nearly 200 to be modernized. We expect that the investments in both weaving and processing will have to gradually increase to match the quality yarn production of the country.
TM: The acquisition of SKF’s spinning components business is a big step forward for A.T.E. What is the vision you’ve set for TeraSpin. Do you plan to introduce more components under the TeraSpin brand, apart from those acquired from SKF?
ARAS: The market for quality spinning components is huge across the world and the acquisition of SKF India’s textile component business has laid the foundation for our global footprint. The new brand TeraSpin launched for drafting system, spindle and top rollers has received tremendous response not only in India but also from Germany, Indonesia, Bangladesh and Turkey with orders pouring in. We will be focusing on the quality and performance of TeraSpin spinning components across the world in order to lay a very strong foundation for any future expansion.
Our state-of-the-art new factory of TeraSpin has already started commercial production, and we look forward to strong growth in business in the years to come for this new business line.
TM: Is A.T.E. looking at more such acquisitions in the future. Is there any fresh plan to enhance manufacturing competence?
ARAS: For any agency house, the agency business model is quite fragile and therefore diversifying into own manufacturing is always the best option to de-risk your business. We are at the moment fully busy and focusing on consolidation of the SKF components division acquisition and have no plans for any acquisition in the near future.
TM: There is a lot of expectation in the growth opportunity in Technical Textiles. What are the solutions offered by A.T.E. in this segment and how do you see future growth opportunity in this segment?
ARAS: A.T.E. is the only organisation in India which can offer all the possible solutions in ‘Technical Textiles’. We can offer technical textile solutions for making different products through weaving, warp knitting, non-wovens (all verticals like spun lace, spun bond, needle punch, chemical bonding and thermo bonding and melt-blown, etc.). We can also offer complete solution in finishing/coating, calendaring of the technical textiles as well as final making up, inspection and packing machines as well. We represent many leading European companies like Truetzschler Nonwovens Group, Karl Mayer, Monforts, Ramisch Guarneri and Monti Mac who are world leaders in technical textiles.
In fact, A.T.E. has been operating since 1994 in the field of technical textiles, although it has come into prominence in India over the last few years only. Within A.T.E., we have tremendous expertise and domain knowledge in this field. We also represent an Italian company ORV manufacturing SPA, which has long experience of putting up ‘technical textile ‘plants across the world and gives engineering consultancy as well as takes complete turnkey responsibility to set up a technical textile plant.
TM: What percentage of the turnover comes from TEG and what are the long-term plans for the group and for TEG?
ARAS: Over the last few years, the A.T.E. Group has diversified into a lot of futuristic businesses like water/waste water management, comfort conditioning and remote monitoring, etc. For most of these businesses, textile sector is one of the major user segments. Some of the businesses started are through acquisition of running companies like in waste water and comfort conditioning. Since all these new businesses are in a consolidation stage, the textile engineering group is still the backbone of the organisation with nearly 80 per cent of the contribution to the group turnover.
TM: A.T.E is also spreading its wings to markets like Bangladesh and Indonesia. How is the business growth in these markets and do you plan to expand to other neighboring markets as well?
ARAS: We stepped outside India in October 2005 by establishing our own company in Bangladesh, namely, A.T.E. Technologies (Bangladesh) Pvt. Ltd. Since we have been operating in this promising market for more than 20 years through local agents, we knew that market quite well and decided to take a shot on our own in view of the tremendous growth prospects of that market. Our decision has come right, if the business growth we had in Bangladesh over the last six years is considered. We represent many reputed European and Indian machinery makers like Zimmer, Ramisch Guarneri, Mimaki, Testa, Salvade, Eliar, Pilotelli, Oerlikon Saurer (Volkmann) from Europe and ZTS, Elgi, Mag, Skaat from India.
Similarly we have strengthened our position in Indonesian market, although through agents and also by posting our own person in that market for more than a year. Indonesia is another promising market for us, and with the TeraSpin brand launch through recently held ‘Bandungtex’ exhibition, our stakes are quite high in that market.
TM: Being the head of A.T.E.’s TEG business, what is the vision and mission that you have set for the division? What is the target for the TEG business by 2015 or 2020?
ARAS: We have been successful in driving growth of the ‘textile engineering group’ as per our strategic business plan outlined in 2008. Through that we have filled in most of the product gaps as well as entered into new business segments like garment machinery, synthetic machinery, carpet making machinery, processing accessories etc. This was done with a clear vision of offering ‘Single window solution’ to the Indian customers. We also acquired few businesses/manufacturing ventures keeping the same objective in mind.
Today, I can proudly say that with proper strategies in place and smart execution of the same, we could make A.T.E. the only company in textile machinery and accessories field which operates right across the entire textile value chain from ‘Ginning to Garmenting’. This does not only confine to spinning, weaving, knitting, processing but also covers utilities like air engineering, laboratory equipment, material handling and effluent treatment plants.
Also we are the only domain experts who can offer all possible technical solutions for equipment in ‘technical textiles’. At A.T.E., after-sales service is very important and is part of our mission. We have strengthened our service offerings, which cover erection, commissioning, trouble shooting, annual maintenance contracts, machinery audits as well as ‘technological services’.
Our mission is to ‘partner with the customer’ and become a catalyst in the growth of his business. With this objective in mind, our sales, service and technology teams are fully geared up alongside the strong support from our principals who carry many years of expertise with them.