Klüber Lubrication India has commenced manufacturing operations at its Mysuru plant and along with channel partners is holding stocks at each location while gearing up to be in a position to serve the demand of those customers who are now operational. In this exclusive interview with Textile Magazine, CEO Hitendra Bhargava outlines the new strategies that will now be adopted post the lockdown phase
The virus pandemic has come as a bolt from the blue for mankind. Lockdowns have led to normal life been thrown out of gear across the globe. Manufacturing activity has come to a screeching halt. Supply chains have been disrupted like never before and virtually every industry has been negatively impacted. However, the gradual lifting of lockdown restrictions has meant that there is some good news trickling in. Klüber Lubrication India Private Limited, for example has started production at its Mysuru plant recently. Part of the diversified Freudenberg Group, Klüber Lubrication has established itself as one of the top players in the lubricants market in India.
Needless to say, the company’s lubricants are among the most sought after by the textile industry. In an exclusive chat, CEO Hitendra Bhargava mentioned that although Klüber Lubrication has been impacted globally by the virus crisis, it has been able to operate most of its lubricant and grease plants across the world and is therefore in a position to serve its customers’ needs. “Klüber Lubrication India has also received permission to commence operations of its plant at Mysuru from April 20, 2020. The permission has come with many responsibilities and our topmost priority is safety of our employees,” Bhargava says.
“We are strictly adhering to the government guidelines, maintaining social distancing, managing a staggered work force, and arranging safe boarding and lodging for non-commuting staff while following the WHO guidelines of safety. With the help of our limited workforce we are able to start production and distribution of our products. Though there were teething troubles in distribution initially, it is becoming better day by day. Some of our channel partners have been able to serve our customers during this critical period. Currently, in India we are in a position to deliver the material to all those customers who are operating during the lockdown and thereby meet their lubricant requirements,” he adds.
Customer Connect
In the aftermath of the lockdown, the company had charted out a clear-cut strategy to engage with its customers. Laying out details of this strategy, Bhargava says, “At Klüber Lubrication India we firmly believe in staying connected with the customers. During the last 45 days we have consistently engaged with the customers in two different ways. Our sales and application engineering team has been regularly interacting with them to know about their wellbeing and to understand the current situation of their plants. The team has also been trying to understand and learn the customers’ current business needs and is taking action to satisfy these through our currently available products and services.”
“We are also engaging with the customers by sending them tailor-made, relevant information while also organising online customer training programs to educate them on how to start their machines after shutdown. This has assumed a critically important role, also for the fact that lubricants play a significant role in making the machines work more efficiently, and especially after a period of shutdown. So far we have received a very good response from all our customers as well as channel partners for the efforts we have been putting in this direction,” Bhargava informs. As to when the current industrial situation will return to normalcy, he says that there cannot be a direct answer.
“Many experts are coming up with different perspectives and views. However, one thing is sure. There will be a substantial change in the behaviour of people, both in their personal and professional life, after the virus issue is resolved. We can already see this change happening now. Once affordable vaccines are available, we will enter into a phase of the ‘new normal’. One thing I must say is that India is faring much better as compared to other countries in managing the crisis because of timely action. As for economic recovery, India is more dependent on domestic consumption and therefore there may be an almost V-shaped recovery in demand in many of the sectors,” Bhargava opines.
“The biggest challenge will be to regain the momentum and keep it going,” he adds. Continuing further he observes that the factors which may derail the recovery in demand are job losses, liquidity crunch and the probability of a second wave of the virus outbreak. He adds that we need to take responsibility to sustain jobs and also maintain the required discipline during operations. “I am hopeful that the government may offer some financial stimulus for the economy to bounce back faster. It is the responsibility of both the government and the people to ensure that all the norms are adhered to so as to prevent another wave of the pandemic. It is only when people will be safe and secure that the economy will have a chance to improve,” he opines.
Long-Term Opportunities
The textile industry has been severely impacted by the pandemic and is staring at an uncertain future. As the industry restarts manufacturing in the post lockdown phase, what are the factors that need to be considered by textile mills as they resume their operations? Replies Bhargava: “There is no doubt that the textile industry is severely impacted by the crisis. The export of yarn, fabric and garments has almost stopped and their domestic consumption is also very low right now. On top of all this, there is a threat of losing some of the domestic market to other countries once the lockdown eases out. Faced by these challenges, the Indian textile industry could enter into the post lockdown era with very low liquidity.”
“And since this industry is also labour-intensive, it may also face shortage of manpower in the beginning considering that many people have returned to their hometowns. On the other hand, there is a long-term opportunity to grab the export share of China in Europe and the US. However, this would require additional investments and a new way of thinking. This makes it critical that entrepreneurs in the textile industry walk on a tightrope post the pandemic and maintain a balance between short-term crisis and long-term opportunities,” he adds. Meanwhile, there is no denying the fact that that it is going to be very tough indeed on account of severe pressure on margins, Bhargava opines.
In such a scenario, how can companies like Klüber Lubrication India help in enhancing efficiency and productivity while reducing maintenance costs and improving margins for textile mills? Elaborating on the products and solutions offered by the company that will help the mills tide over the crisis, Bhargava states, “Restarting the textile industry post the lockdown will have challenges in terms of liquidity, margins and low man-to-machine ratio. The major buzz words in the industry will be more output from each machine and higher machine availability. Klüber Lubrication India would like to play a pivotal role in not only educating the industry about how to increase machine efficiency with specialty lubricants but also in providing services to demonstrate reduction in the cost of lubricant per kilogram of material produced.”
He also adds that Klüber Lubrication India, with its enhanced focus on technology, would want to help its customers with digital solutions to tide over many of the new challenges. “We are planning to introduce the Klüber Efficiency Manager™ software which is a tool that helps management, maintenance heads and even operators manage maintenance practices efficiently across the plant. As a goodwill gesture we intend to give this software to our long-term valued customers for free over the next few months. This is also our way of expressing solidarity and support for the textile industry. Our channel partners being subject matter experts also play a very pivotal role in helping the industry with the right solutions at the right time,” Bhargava elaborates.
Geared to Perform
At Klüber Lubrication India there is a new surge in confidence even as the company equips itself to once again service its customers by way of production, logistics, distribution and service. “As mentioned earlier, our plant operations in Mysuru have started and we are serving the needs of all those customers who are already operational. All our global plants are also functional and are able to cater to the requirement of each region, including the Asia Pacific. And though we are facing some teething problems in our supply chain, we expect it will become better over a period of time,” Bhargava states, adding, “We have very strong channel partners and they have a large enough network to reach all the textile companies in India. The channel partners are holding stocks at each location and are in a position to serve the demand.”