- How important is participation in events and have you participated in other events also besides ACREX 2015 here in Bangalore?
We feel that participation in such shows is of extreme value. We have participated in ACREX before. Last year, we were one of the key sponsors and this year we are an exhibitor. Apart from ACREX, we also participated in the TDE show, ELECRAMA and the renewable energy show. We have also been part of a few conferences. I do believe that trade shows – such as ACREX are very effective, as not only we do meet our existing customers but we also get to reach out to potential customers. These platforms are very crucial for us – as they help in exchange of ideas and build better relationships.
- What does the certification mark stand for?
The certification signifies that the products perform on safety and performance parameters, based on some standards, which the certification mark represents. Different countries in the world follow diverse marks and certifications; therefore there is a need of a set standard for quality that can be accepted globally. The product needs the quality that would meet the customer’s satisfaction. The industry is huge – and we believe this is just the beginning for us in India. We aim to be the most accepted company and become the preferred partner for those seeking quality solutions and certification in South Asia.
- Where are Intertek’s testing labs situated in India?
We are situated across the country, and we have about 20 labs situated in India. Specifically for the electrical market, we have three labs in Delhi, Mumbai and Bengaluru. For HVAC sector we have a lab in Delhi which had been setup for partnering Bureau of Energy Efficiency (BEE) around 2004. Without a lab there can be no certification programme. So in any sector, if you want to say ‘Make in India’ you will have to underpin that to quality. Products manufactured in India have to compete with those made in developed nations. So, if you have to compete on the bases of quality, quality needs to be seen as an investment – and not as an expenditure. We can see innovations in this segment with the government’s intervention.
- ‘Make in India’ is an entirely different concept from ‘Made in India.’ What is your priority for certification?
‘Make in India’ is a campaign to invite companies to manufacture their goods in India. Once these goods have been manufactured, they are called ‘Made in India.’ As of today, there is a mix of certification for manufacturers, who want to export and for those who manufacture for the domestic market. There isn’t a lot of regulation for people who want to make in India, and this really needs to change. Currently with the new BIS scheme for IT and AV, any IT/AV manufacturer who wants to sell its products in India needs to test its products for safety on Indian soil.
All the globally renowned brands have their own certification marks, but if they want to sell their product in India, they need to ensure that their products comply with the specific standards and testing norms set up by DeitY.
Today, we are talking about IT/AV, tomorrow the government will extend it to other product categories that are manufactured in India – either for export or for the domestic market. For ‘Make in India’ to take root, the domestic manufacturing sector has to embrace quality not as a liability but as a weapon. This will take shape only when the government mandates minimum quality standards.
- Do you have some standard certification marks like CE, ISI?
Intertek’s commitment to the electronic and electrical sector has a very strong legacy, because the company started with the lab of Thomas Alva Edison, the father of the electric bulb. Edison Testing Lab., or Electrical Testing Lab., as it was known at that point of time evolved into the ETL (Electrical Testing Lab.) mark. The ETL mark of testing that emanated from his lab., is one of the two important marks for the export of products to the US. Similarly, there is CRS and ASTA in the UK and the GS mark in EU.
When IT/AV products are registered under the BIS, it means that the product has conformed to the specifications and has been tested on the Indian soil. Going forward, the domestic manufacturers will also have to get the BIS mark – for their products ensuring that the product functions the way it is supposed to.
- How will your standardisation help in the ‘Make in India’ campaign, and which sectors are you going to target?
The ‘Make in India’ campaign will involve manufacturing work for domestic as well as the export market. For the export market, Indian manufacturers are competing with the manufacturers in other countries, and they all have to go through the stringent quality procedures, checks and balances – and all the certification processes. You cannot compete unless you adopt the same approach.
Today in our country, there is a lot more spending power, and a huge amount of awareness. The younger generation of these days questions the quality of products whether they are manufactured in India or in any other country. The psychology has changed and demand for the best has increased.
- Who all are your competitors in this service area?
For the electrical segment, Underwriters Laboratory (UL) is our largest competitor. Otherwise, for the general quality services industry, there are two large competitors – SGS and Bureau Veritas.
- Finally, what should be your contribution for the electrical sector?
HVAC&R is going to be a major focus area for us. If you tabulate the energy consumption at home, HVAC&R has a huge amount of contribution. In future, there is going to be a lot of guidance and mandates from the government in terms of pushing it to be a more efficient group.
Even now, there is a talk that the government is introducing a new standard called the Indian Chiller Standard, this is for energy efficiency in the commercial air-conditioning sector. Whatever the government does, we support them by providing them with the testing package.
From domestic air-conditioning testing, we are venturing into commercial air conditioning testing. For Intertek there is going to be an increase in operations on HVAC, but we are also looking at a major movement towards the commercial aspect. The domestic sector is already regulated because of the star rating.
Across the globe, we have worked with agencies to regulate these industries – and we want to bring that global knowledge to India and partner with the government.
- What is your short-term plan?
Our vision over the next few years is to significantly grow our business. We will deploy both organic and inorganic routes to increase our scale in this market, and our market process.
We need to understand the market opportunity in the overall set up – and deploy our resources. The idea is to invest heavily in India, be it in terms of capability building or in terms of capability buying – and gain market position by the turn of the decade. We hope that over the next few years, we will be market leaders in quality services – and will be able to deliver the best at our end.
