India’s defence industrial policy needs to be in line with the objective to boost defence exports. The government should interact more with vendors and look towards making the procurement process faster, says Neeraj Gupta, Managing Director, MKU Pvt. Ltd, in an interview to H. Siddiqui of SMEpost.com.
Q: Defence manufacturing is still a niche segment in India. What was the motivation behind starting this organization more than two decades back?
A: MKU started as M. Kumar Udyog more than two and a half decades back. When we went international, we changed the name to MKU and today we are known globally by this name. Defence manufacturing is indeed a very niche segment and hitherto much neglected segment. Till very recently it was the exclusive preserve of the Government and open only to DPSUs. The private sector participation started in earnest only after 2001 when the government started opening up the sector for private industry. However, this has received a boost with the new government’s thrust on promoting the private industry in sector.
It was this motivation that led us to break the frontiers and venture out. We are happy that today we stand vindicated with the government’s belief that this sector can help increase the contribution of the manufacturing sector and also provide employment. We truly stand behind Prime Minister Modi’s call for ‘Make in India’ and want to take the Indian footprint even further into the international market by promoting ‘Made in India’.
Q: What are the different categories under which MKU offers defence equipment?
A: MKU manufactures protection solutions basically under two categories – a) Personnel Protection and b) Platform Protection. Under the former we have the various categories of personal protection gear for the security and defence forces. We specialize in providing state of the art, technologically superior protection equipment that reflects the latest technological trends globally. We have our own Technical Centers in India and Germany, where our team of engineers work on developing new solutions and effectively using the latest materials. MKU acquired an armoring company in Germany in 2008 and with it ventured into platform protection. Today, we have the capability and experience to provide armor solutions for a wide variety of platforms including naval vessels, land vehicles and aircrafts. We have provided armor solutions for many Indian projects including the ongoing procurement of 80 patrol boats by the Indian Navy. Our production facilities in India and Germany are certified according to the stringent AS 9100 C. MKU GmbH, our 100 percent subsidiary in Germany, is on board the F125 project for the German Navy.
Q: MKU offers complete project management for design, development, manufacturing and integration of protection solutions for Land, Air and Naval platforms. Tell us more about this.
A: MKU offers end to end solutions in armoring of Aircraft, Naval Vessels and Land Vehicles. MKU specifically works on developing Light Weight solutions for Land, Sea and Air platforms. Not only do we design and manufacture the armor solution, we provide the complete ready to fit kit including the special attachment systems. Our solutions are comprehensive and proven over the years. MKU works on armoring solutions with customers globally. Over the years MKU has executed several contracts successfully for clients including, Armored Mi-17 helicopters for Mexican Police, Armor for several naval projects in India for Fast Patrol Boats and Protection kits for helicopters for German forces amongst others.
MKU has recently introduced its sixth Generation armor technology – Polished V6. Solutions made using the new technology are up to 40 percent lighter and much thinner than standard solutions. Weight is extremely critical for helicopters and every gram saved results in a corresponding increase in the effective payload of the platform. This technology has been developed after extensive R&D by MKU’s team of experts and engineers based in Germany and India.
Q: What kind of manufacturing set up do you have?
A: MKU’s infrastructure spans two state of the art units in India and one in Germany. Together, these units have a capacity to produce over 200,000 helmets, 150,000 ballistic jackets and 300,000 inserts for defence and security personnel. Our production facilities in Germany and India are certified according to AS9100 C and ISO 9001.
Q: How much is the company investing in R&D?
A: R&D plays a very critical role in keeping MKU ahead of the technology curve. In order to be globally competitive, it is critical that we remain abreast of all technological advances. We at MKU understand this and spend 5-6 percent of our turnover on R&D. We have established a technical centre in Kanpur to focus on product and technological development. Our team of engineers in Germany and India are engaged in continuous R&D. It is a result of this focus that we have been able to keep ahead of the curve technologically and continue to develop superior products to meet the requirements of the forces all over the world. MKU has recently introduced the sixth Generation Armor Technology AMMOFLEX 6, POLYSHIELD 6 & POLYSHIELD V6, which have helped reduce the weight and thickness of existing solutions by almost 40 percent. Solutions manufactured using this new technology was showcased in the recent exhibitions in India and abroad.
Q: Do you have any kind of technical collaborations or partnerships with international companies?
A: We are proud of the fact that our technology is indigenous and the result of the hard work and dedication of our team of engineers in India and Germany. In MKU we do not have any partnerships with international companies for the manufacture of protection solutions. We do have a 100 percent owned subsidiary in Germany.
Q: What are the different challenges faced by the defence manufacturing sector in India?
A: Among several issues being faced by this important and critical sector, there is an urgent need to streamline the procurement process. Currently, there is lack of clarity in the RFPs which are issued, leading to scrapping or withdrawal of RFPs after the process has moved for a year or two leading to losses for the companies participating and the services not getting the desired equipment.
The government should interact more with vendors and look towards making the procurement process faster. Rather than the current policy of accumulating requirements for several years, the government should come up with yearly or half-yearly procurement plans. This will create multiple options for procurement as well as regularity of India’s defence industrial policy needs to be in line with the objective to boost defence exports. The government support for promoting Indian made products has to extend to the concept of “Indian Pavilions” at International trade shows. There needs to be a mix of Public and Private companies. The focus should also be on advances made in technological development and remove the image of India being only a component manufacturer. The private manufacturers need to be provided a level playing field with the DPSUs in order to encourage advances in technological development as these require investment of time and money. The current policy of development on “No cost no commitment” basis also needs to be re-evaluated to encourage more participation. There should be well defined timelines for decision making.
