Toshiba will contribute to the development of Power and Infrastructure sectors with its experience, expertise and technology innovation for THE NEXT INDIA
Mr. Tomohiko Okada
MD, Toshiba India Private Ltd.
“Toshiba has a long history of over 50 years in India and we are on track with the Rs. 3000 crore investment since 2013 and currently employ close to 10,000 people in India.”
“Toshiba is focusing on sustainable B2B fields like Railway Systems, Batteries, Elevators and Water Treatment besides Power systems field. We have identified India as a hub for our manufacturing operations and export base with an aim to “Make in India and Export from India.“
Q 1. Toshiba has been associated with India for over half a century. And you have been a part of that history for over 30 years. Can you describe your journey in India so far& What are your most memorable moments during Toshiba’s association in India&
Toshiba has a long history of over 50 years in India and I joined Toshiba’s Indian operations back in 1983 and for over 3 decades, I have been closely associated with the Group’s businesses in India. During this period, I formed not just a professional bond, but also a spiritual connection with this great nation. Because of this connection, it has been an extremely pleasurable experience for me to work with the Indian team over the years.
Although I have many unforgettable experiences working in India, my most memorable experience was during the late 80’s and early 90’s in the Power sector. Despite the underprovided funding structure, political volatility and scarce infrastructure, we successfully delivered the Anpara B thermal power project within the stipulated time frame. The two units of Anpara B power plant project were commissioned in 1994 and are still operating without failure for over 20 years. This was our biggest contribution to the growing Indian economy in those days.
Q 2. Many foreign companies are focusing on India for its market size and economic growth. What kinds of fields do you see a potential in Indian market&
The Indian economy is on a robust growth trajectory and boasts of a stable annual growth rate, rising foreign exchange reserves and booming capital markets among others. To continue to grow at over 7 percent, the Indian economy is making a strong impetus on developing industrial corridors and smart cities. Positive initiatives like Power for All and other Government schemes for rural electrification aimed at providing adequate and quality power supply in rural areas will add to the quality of life for rural India.
Toshiba can help India augment its energy infrastructure and contribute to the growth of these industries for powering THE NEXT INDIA, by providing high quality products and solutions for efficient and cleaner power generation with minimal carbon footprint, optimum transmission and distribution (T&D) of energy with zero losses, and efficient energy storage solutions to ensure uninterrupted power supply to even remote and unconnected regions.
We will also vigorously focus on water and wastewater treatment solutions to help Indian Government in providing access to safer cleaner water and proper disposal of wastewater.
Q 3. Which are the key business verticals for Toshiba in India? How about Toshiba’s investments and job creation in 5 years?
At Toshiba India, we channel our world-class capabilities in advanced electronic and electrical product and systems into two focus business fields: Energy, and Social Infrastructure. Within Energy sector, from manufacturing of thermal power generation equipments at TJPS (Toshiba JSW Power Systems Pvt.Ltd.) and renewable Hydropower projects through TIPL (Toshiba India Pvt.Ltd.), to optimum energy transmission equipment through TTDI (Toshiba Transmission & Distribution Systems India Pvt.Ltd.), we offer a complete Energy Solution that sustains everyday life.
In the Social Infrastructure area that enhances quality of life, we offer a multitude of products and solutions including – water and wastewater management solutions through UEM India(UEM India Pvt.Ltd.), world class green elevator solutions for creating smarter buildings through TJEI (Toshiba Johnson Elevators India Pvt.Ltd.), reliable energy storage solutions through our proprietary rechargeable lithium-titanate batteries technology, and electrical equipments for railways and transportation solutions.
In addition, we also have a strong presence in MFP, Storage & Electric Device, PCs and various other infrastructure systems businesses in India.
To build a leadership position in our focus business, we are on track with the Rs. 3000 crore investment since FY2013 in energy and social infrastructure businesses, scheduled to be completed by FY2017, and currently employ close to 10,000 people in India.
Q 4. What is your outlook for problem and challenges in Indian society such as energy issue and availability of water? How will Toshiba contribute to them?
Being part of the Toshiba Group for over 3 decades, I have witnessed many nations facing a huge challenge in the areas of stable energy and clean water during their transition from developing to developed economies. For India, with our experience, expertise and technology innovation, we will contribute to the growth of industries FOR THE NEXT INDIA.
In the energy sector, Toshiba Group companies in India can offer a complete energy solution – from efficient high quality power generation and EMPCS (Engineering, Manufacturing, Procurement, Construction and Services) solutions, to optimum energy transmission & distribution solutions and reliable energy storage solutions.
For high quality power generation, we have established TJPS factory in Chennai that manufactures and markets super-critical steam turbines and generators for thermal power plants in India and across the World. With TJPS, we aim to become World’s number 1 manufacturing and EMPCS company for thermal power plants. Our long track record of successfully delivering the projects has won us many prestigious projects like the Rs. 3436 crore EPC Contract for Harduaganj by UPRVUNL. Achieving a significant milestone in our ‘Make in India’ endeavor, we will ship our first large-scale generation system manufactured and assembled with locally procured parts and systems, and tested in India.
But high quality power generation requires an efficient T&D network too. Realizing this huge gap in availability of efficient transmission network and identifying this huge potential, we established TTDI in 2013. To meet the increasing domestic demand from the Indian market and the African countries and others globally, we are reinforcing our T&D business with a 3-billion yen (approx.US$30-million) investment to boost production capacity for transformers by 50%, and establish a new line for production of Gas Insulated Switchgears and Solid Insulated Switchgears.
In a strategic move to strengthen the Group’s water and waste-water management business in India and neighboring countries, we have consolidated our presence in India by acquiring 80% stake in UEM India that specializes in providing turnkey services in water and wastewater collection, treatment and disposal. UEM Group provides complete, single-source services from engineering and design to construction and installation of water, wastewater and domestic waste treatment facilities, with operation and maintenance services for such facilities. Through UEM India, we are catering to Municipal, Industrial and Private Corporate sectors using various modern technologies like Activated Sludge Process (ASP), Sequential Batch Reactor (SBR), Membrane Bio Reactor (MBR), Reverse Osmosis Membrane Treatment (RO) etc.
Q 5. Which business will you identify as your growth sectors in India? What is Toshiba’s strength to expand its business in India?
In the last few years, we have reinforced our Power and Water treatment businesses in India with robust capacity expansion and growth strategy for catering to domestic demand and export market. In addition to these, we will also consolidate our operations in Railway Systems, Elevators and rechargeable lithium-titanate battery to foster our growth in Indian market.
With our over 100 years of experience in providing products & solutions in rail transportation, we bring advanced technologies to rolling stock systems, power supply systems and information systems. We will manufacture high quality, customizable products and solutions that have significantly lower life cycle cost, for Indian Railways and Metro transportation companies, at our new manufacturing facility in Hyderabad.
For the Indian elevator market, we have introduced world-class, high quality, customizable, greener and safer elevator solutions for creating smarter buildings and infrastructure. Since our entry in this market in 2011, in a very short time, we have secured orders for over 1000 elevators and consolidated our presence by securing some of the very prestigious high rise projects in India. Our Pan-India sales and service network covering Tier-1 and 2/3 cities is also our strength to cater the best service to the clients.
I also believe, to develop and maintain a reliable social infrastructure, uninterrupted power supply is essential. In India, where constant power supply remains a challenge, a quick-charging backup battery with high power output performance would be advantageous. Our rechargeable battery offers superior safety, quick-charging performance with ability to charge upto 80% of the capacity in as fast as approx. 6 minutes, extremely long life of 15000 recharge cycles, and the ability to withstand extreme temperatures. With our rechargeable battery technology catering to critical industries like telecom towers, transportation, energy, infrastructure and more, we can make lives better FOR THE NEXT INDIA.
Q 6. Toshiba has manufacturing bases of Turbine & generator and T&D products, and also established railway systems equipment production facility recently. How do you see India for Toshiba with the objective of manufacturing?
Manufacturing has emerged as one of the high growth sectors in India. The Government’s ‘Make in India’ program intends to place India on the world map as a manufacturing hub and give global recognition to the Indian economy. India’s manufacturing sector has the potential to touch US$ 1 trillion by 2025, increasing the contribution of manufacturing output to 25 per cent of Gross Domestic Product (GDP) by 2025.
Being one of the larger geographic territories and its unique position that serves as a gateway to countries in Southeast Asia, the Middle East and Africa, we identified India as a hub for our manufacturing operations and export base long before the government’s initiatives, with an aim to ‘Make in India and Export from India’. With the access to a huge skilled workforce and a conducive business environment, India is poised to establish itself as the manufacturing hub for the World.
We have made significant investments over the years in multiple manufacturing facilities and business solutions in India. Setting up our power generation operations in India, Toshiba established a manufacturing facility in Chennai to manufacture and market super-critical steam turbines and generators for thermal power plants in India, under the name – Toshiba JSW Power Systems. Today, TJPS offers from manufacturing to one-stop solution for EMPCS of thermal power plants.
High quality power generation requires an efficient T&D network. Identifying a huge potential in this sector, we established TTDI in 2013 in Hyderabad. We are further reinforcing our T&D business in India by expanding capacity and introducing new manufacturing lines.
In April this year, we started the FY2016 by adding another manufacturing facility in Hyderabad, established for production of electrical equipment for railway systems, and accelerating our ability to supply to international markets in the future. This new unit will manufacture power conversion systems and train control systems that provide overall operation management.
Today, we have multiple manufacturing and marketing bases for our power systems, industrial and social infrastructure systems and advanced electronic and electrical products. Some of these business operations need R&D support, for which the Group established TSIP (Toshiba Software India Pvt. Ltd.) in Bangalore. TSIP provides competitive software solutions, thereby enabling our customers to achieve and sustain market leadership.
Q 7. Toshiba’s brand image as a TV or PC maker still remains strongly in India. How will you change the brand image as BtoB Company which focuses on Energy solution, social infrastructure and storage business?
It is true that in the last few years, Toshiba successfully introduced a range of innovative consumer electronics products and we were able to create a premier brand image for Toshiba as a leading electronics products company. However, recently Toshiba group has undertaken a fundamental restructuring of its businesses globally and has decided to focus on the profitable and sustainable B2B fields as a core business.
We are currently working towards improving Toshiba’s brand awareness as a B2B company and we want to create a trustworthy brand image as a Global company for Toshiba in India. Toshiba is creating values for a better life through its philosophy of “Committed to People. Committed to the Future.” Toshiba is committed to play a significant role and be a partner in India’s growth and development. Only by demonstrating real commitment and similar passion for India, only by walking side by side in camaraderie, only by being genuine and true can one reach the heart of the New India. At Toshiba, we want to be the power behind every great start in this country. Because it’s when technology meets life you’re empowered to unleash your full potential. “Toshiba – FOR THE NEXT INDIA“ is our brand promise in India and we want to deliver this commitment through our innovative technologies and expertise in the key energy systems & solutions and infrastructure systems & solutions areas.
Q 8. The key focus area for Toshiba Corporation is contribution to the society it operates in. Can you share some of the initiatives you have undertaken in India?
Toshiba is a socially responsible organization with priority for contributing to the people and the society. In India, we want to support multiple initiatives undertaken by the government and contribute in making them a success.
To strengthen the Skill India campaign, we partnered with the Industrial Training Institute (ITI) and have set up a welding training school at TJPS Chennai factory. Through this initiative, we are imparting manufacturing process training to the students of ITIs to skill them with advanced processes and technologies.
Toshiba Group companies in India also participate in the Clean India initiative by organizing cleaning drives and awareness programs regularly. In addition, we also try to contribute to the society by making frequent contributions to PMRF (Prime Minister Relief Fund) to support the government during natural calamities and testing times like the Chennai floods.
Q 9. How do you see India emerging as THE NEXT INDIA over coming 5-10 years? How can you contribute to THE NEXT INDIA as a Managing Director of Toshiba India?
We have seen a paradigm shift in the mindset of the Indian people as the economy evolves and they seek a better standard of living. This is what happened in Japan in the early 50’s and the same evolution is visible in the Indian market where customers are aware of technological advancements and exhibiting a shift from being extremely price sensitive to being quality conscious.
India’s approach to quality products and acceptance for quality over price is beginning to take shape as the long-term cost of ownership of high quality products proves to be much lower than the initial lower investment in the case of low quality, low initial price products.
From economic growth perspective, to match the challenging incremental demand from critical sectors like energy and social infrastructure, India needs not just a capacity overhaul, but high quality solutions to bridge the gap.
We, at Toshiba, stand committed, through our Japanese technology and expertise, to help India evolve to THE NEXT INDIA.
FOR THE NEXT INDIA