Industrial Automation Magazine India

We want to develop Contract Manufacturing model for our operations in India

Published on : Friday 01-01-2021

Saurabh Sagar, Head of Global Operations, Orel Corporation.

Tell us in brief about the Orel Corporation. What is its organisational structure and global operations?
Orel Corporation, founded in 1920, is a 3rd generation, family-owned multinational organisation, with operations across multiple business segments. With our mission ‘To add more to life with electricity’ we provide safe, reliable and energy efficient products across wiring accessories, lighting and controls, structured cabling and industrial switchgear. These products are all Industry 4.0 compliant.
 
We are headquartered out of Sri Lanka, and present in 35 countries across 6 continents. We constantly endeavour to provide solutions in all business verticals. With a strong network of more than 50,000 business partners and 5000 personnel, we ensure quality services wherever you are. We operate in 8 business verticals, which are Digital Infrastructure, Building Infrastructure, Digital Commerce, Artificial Intelligence, Education, IoT, Health Care and Transportation. These are the 8 pillars which combine together to form the Orel Corporation.
 
We specialise in providing integrated solutions across multiple market segments. We empower humanity by creating a brighter, cleaner and smarter future for everyone. From switches to smart tech to water saving, our products, technologies and services are class leading solutions for buildings and the built environment in both developed and developing countries, for today and creating a sustainable environment for future generations. 
 
Our list of customers in India include Hyundai, Indigo Group, Taj, Marriott, Dainik Bhaskar, Hyatt, Aloft Hotels, Hinduja Hospital and many more. Since our organisation is spread globally performing various operations, we tend to follow a hybrid structure, which is a blend of functional and divisional structure. This lets our organisation perform more smoothly since all personnel are fully equipped with the skills required for performing their jobs, which ultimately leads in increased efficiency of each and every employee.
 
Is this the right time to expand in India – a huge market but also a highly competitive one with strong local and MNC presence?
We believe that this is the opportune time to expand and grow as an organisation. While doing business in India may not be the easiest due to huge competition, it definitely is a place to be in for the future. And as business is a game of return on investment, India over the long term offers unique advantages, which cannot be overlooked for a long period of time.
 
Orel India was established in 2015. Since then we have been experimenting by bringing in a whole new class of products and services in India to which we have received a lot of positive feedback from the market and our products and services are bringing in exceptional value at un-imaginable price points. 
 
Though there is strong local and MNC presence in the Indian market, the demand for electrical products and equipment is also increasing rapidly and about 50-60% of the demand for electrical products is met by imports, which is rising at a rate higher than local production. Also consumption of electrical products is expected to increase further by 2022. Expansion of our organisation will ultimately enable us to export Made in India products to other countries in the Gulf region and Africa, among other markets.
 
Are the India operations embracing all the eight business verticals of Orel Corporation?

Orel Corporation has been embracing the Building Infrastructure area in India since last few years, which includes electrical and lighting products. Our wide portfolio of building infrastructure products is innovative and intended to empower humanity by creating a brighter, cleaner and smarter future for everyone across the globe.
 
After embracing building infrastructure we are moving forward and looking to ride on the digital revolution pursuing an aggressive e-commerce and digital marketing strategy to tap millennials, who are expected to be major consumers going forward.
 
One of the most notable trends that we are witnessing today is the digital revolution. This is going to have a significant impact on consumer behaviour and market structure in future. Increasing focus on digital marketing, online campaigns and social media will help us access the millennials who are going to drive strong trends of consumption in the coming time. Therefore, keeping that in mind we are planning to invest Rs 50 million in our e-Commerce platforms, advertisements and publicity across various media channels. We are sharpening our focus both in the marketplace as also on social platforms that are frequented by Indian consumers.
 
How does Orel plan to leverage its competencies in the industrial, buildings and infrastructure segments?
Orel Corporation is an adaptive manufacturing e-Commerce led enterprise in Industry 4.0 with particular expertise in Building Infrastructure, Digital Infrastructure, Artificial Intelligence, Digital Commerce, Healthcare, Education, IoT and Transportation. We use modern control systems, embedded software systems and dispose of an Internet address to connect and be addressed via IoT (the Internet of Things). This way, products and means of production get networked and can ‘communicate’, enabling new ways of production, value creation, and real-time optimisation.
 
Orel Corporation has been associated with Schneider Electric and was their original electrical manufacturer (OEM) along with many other electrical MNCs in the past. We also used to distribute the products across various countries on behalf of the MNCs. In over 30 years we have gained knowledge and resources related to this business. As mentioned earlier, we also have presence in 35 countries with a strong network of business partners.
 
What are the company’s plans for India in terms of manufacturing operations?
We want to develop a Contract Manufacturing model for our operations in India. Contract manufacturing is by far the most-used form of manufacturing utilised by companies across the globe in need of outsourced manufacturing services.
 
This model will help us in significant cost saving, by outsourcing our products, we will not have to dedicate in-house valuable resources to manufacturing. Instead we would like to focus on teaching them the expertise and bring into them our innovative ideas and an open platform where they can prosper and grow along with us. For doing so we would like to join hands with young Indian manufacturers to bring in more technologically advanced products and services in the Indian market.
 
This would also help us in providing superior quality products to our customers since the contract manufacturer would possess all the technical and professional skills and knowledge for the products. With the help of this model we will be able to create more opportunities within our company and for Indian manufacturers as well.
 
The India operations were established in 2015. How has the company fared since and what are the new initiatives planned?
Since 2015, we have been focusing on building our foundation in the Indian market. Since the beginning we spared no effort to fortify the electrical industry with our safe, reliable and energy efficient products and integrated solutions. Over the years with unwavering focus, Orel Corporation has relentlessly worked to combine ground-breaking technologies and new ideas for revolutionising the electrical solutions.
 
We have observed a potential demand and positive response from Indian market and consumers. We expect to reach Rs 100 crore market by 2022. We are now focusing on leveraging the power of digital platforms to revitalise certain areas of our business. Now more than ever, we are engaging with one another online using conversation, videos, and social media posts.
 
This Covid-19 pandemic has prompted inspiring acts of innovation and creativity, therefore we acquired young talent for the development of the organisation towards technology. We are currently focusing on building our online presence by shifting towards e-Commerce. We are utilising our resources in building an online platform (orelbuy.in) where we intend to provide the best range of home improvement and lifestyle solutions through the e-Commerce platform, just a click away. We would also be delivering quality products from partners and our brands.
 
Where does India figure in the global expansion plans of Orel Corporation?
India at the moment stands at the fourth place, as Sri Lanka is at the top of our priorities in terms of expansion plans followed by the USA and the Middle East. But we have major global expansion plans lined up for Orel Corporation in India. We plan to export Made in India products to other countries including Africa, South Asia and the Middle East. In addition to exporting products, Orel plans to open more than 100 electrical outlets in New Delhi, Jaipur, Kolkata and Punjab in the next 6 months. We are currently developing new product ranges in India so that we are able to give better quality at better price and India no longer has to import products from China or any other country.