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com/PuneMCCIA

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Editorial

Mahratta Chamber of Commerce, Industries and Agriculture had organised the 'SME Founders'
Conclave' on 6th February 2019. A galaxy of eminent speakers like Mr R. Gopalkrishnan, Former Director-
Tata Sons, Mr. Sanjay Kirloskar, Chairman and Manging Director- Kirloskar Brothers and several others
addressed the audience.

There were perspectives from large corporates, academic institution (IIMA) as well as SMEs with
sustained high growth over last few years. The central theme that emerged out of the deliberations was
“How to Create Long Lasting Enterprises while continually improving the products and services on offer”.

While this issue goes to print, we had the Presentation of the Interim Union Budget for 2019-20 by
Hon'ble Shri Piyush Goyal, Finance Minister of India. There are several aspects to the budget relating to tax
proposals, agriculture sector, industry and others. In this issue, we have summarised reactions of the MCCIA
Board and select experts.

We are presenting this issue with a Special Focus on Defence as we organize very important conclave on
th
Defence Indigenization on 5 February 2019. In this Issue we are presenting select DRDO establishments
and Private Sector companies in Pune region who have done pioneering efforts in Defence sector. We are
confident that their success and plans ahead will encourage many of MCCIA members to explore prospects
in Defence sector.

The Issue also includes several articles on a range of topics which are of interest of MCCIA members.

As always, we look forward to your valuable feedback. Do reach out to us at sampada@mcciapune.com

Prashant Girbane
Director General, MCCIA and Editor, Sampada
sampada@mcciapune.com

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Vol. 74th • Issue 11

• February 2019

Founder
7
Cont
Reactions to the Interim Union Budget for 2019-20
Late A. R. Bhat
9 Perspectives on Indian Defence Industry
Editor
Prashant Girbane
- Air Marshal B N Gokhale (Retd)

Content Co-ordinator 16 DRDO Labs and Establishments in

Sudhanwa Kopardekar
Pune and Ahmednagar
Production and Co-ordination
Pramod Potbhare 20 Local Suppliers to Get Purchase Preference for
Page Layout
109 Defence Items
G'tech Computers - Amit Cowshish

Cover Page Design 22 Walchandnagar Industries Perspective on

Vivek Sahasrabudhe
Defence Sector in India
Printing - G. K. Pillai
Modern Printing Service
1358A, Shukrawar Peth, 25 Make In India - Mission to achieve Self Reliance
Bajirao Road, Pune 411002.
Ph. : 020-24471034 - Harshvardhan Gune

Printer/Publisher 27 Analytics and AI in Defence Systems

Printed and Published by - Dibyanshu Dwivedi, Yogesh Badhe, Sunil Agrawal
Prashant Girbane
Director General
Mahratta Chamber of Commerce,
Industries and Agriculture
Senapati Bapat Road, Pune 411016.
Tel. : 020-25709000

Owner
9
The President and The Members of
the Executive Board of
Mahratta Chamber of Commerce,
Industries and Agriculture
A & B Wing, 5th Floor,
MCCIA Trade Tower,
International Convention Centre
Senapati Bapat Road, Pune 411016.
Tel. : 020-25709000

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CIN : U01409MH1974PLC017803

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ents
31 Success Stories for Suppliers
to Defence Sector 20
34 SME Founders' Conclave

39 MCCIA News

42 Making Sustainability Resonate in

MCCIA Members
- Chetankumar Sangole

44 Preparing for International Business

- Anil Dhaneshwar 27
47 Enterprise Resource Planning (ERP)
Implementation in MSME
- Milind Damle

49 Credit Cards Frauds - Are YOU Vulnerable?

- Prashant Koranne

51 Wellness and Lifestyle Management

- Dr. Rajiv Yeravdekar

54 Recognizing the Importance of the Role of

the Employer Under the Sexual Harassment
Law in India
- Divya Chavan Jachak
54
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- S>m°. gwYra amqeJH$a

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Reactions to the
Interim Union Budget for 2019-20
Shri Piyush Goyal, Union Finance Minister presented the
interim budget on 1st February 2019. A live telecast of the
budget was organised by Mahratta Chamber of Commerce,
Industries and Agriculture (MCCIA) during which many
eminent people shared their views about the budget. Most
people welcomed the budget terming it as balanced and
appreciated schemes like providing direct income support to
small farmers.
Mr. C. V. Chitale, Chairman
Taxation Committee, MCCIA said,
“This budget mainly focussed on
farmers and the middle class. The
middleclass tax payers have a
reason to rejoice as full tax rebate
was announced for annual income
up to Rs 5 lakh. Certain provisions
were also made for senior citizens as
well. The budget also had something
for the real estate to cheer with
notional rent which is applicable on
second house being waived off."
Mr Pradeep Bhargava, President, MCCIA stated “The
budget comes out as a very impressive balance sheet and it
will have a long-term impact. It has a very strong social
agenda and has focused on infrastructure development be it
highways, railways, waterways, airways which is very
important.
Industry and Industry Associations should look at the
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budget in a broader and a long term perspective. Benefits
percolating to certain sections of the community like rural
farmers and urban poor are the responsibility of the state and
also the stakeholders like the industry. The contrast if not
controlled will boomerang on the industry itself and it is
important for the industry's sustainability as well.
The money flowing to the deprived section of the
society comes back into the economy by increasing their
buying power. They will start consuming products and
services that the industry provides, which will ultimately
benefit the industry. Needless to say that the farmer will use
the subsidy for consumption purpose which will
indirectly boost the economy and improve rural buying.
On the issue of growth of jobs, There can't be GDP
growing without the labour content growing. GDP growth
indicates jobs in different segments being created. Hence we
need to wait for the right arithmetic before we debate about
growth in jobs.”
Mr. Prashant Girbane, Director General, MCCIA said
“This looks like a fairly balanced budget for two reasons.
Firstly it addressed many constituencies especially farmers
and individual tax payers and at the same time managed to
Keep the fiscal deficit to a more acceptable level at 3.4%.
This budget highlighted the policy of Direct Cash
Transfers (DCT) to farmers. Part of Rs.6000 per year
reaching out to 12 crore farmers is expected to be disbursed
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in next few weeks. It is significant not
just for this budget but for the years to
come. I hope in future, almost all
subsidies are though DCT to the
farmers account.
While some of these
announcements related to MSMEs are
new others have been reiteration.
1. Centre's push to GST council to
allow quarterly return filing for
MSMEs with turnover below 5
Crores. This will benefit 90% of the
MSMEs.
2. Besides the budget has introduced
2% interest subversion for loans
up to Rs.1 crores.
3. At least 25% procurement of the
Government departments and
PSUs would be from MSMEs.”
Sharing his views, Mr. S. K. Jain-
Past President, MCCIA said that even
as it was said that that the government
has taken steps to support MSMEs with
facilities like getting loan up to Rs. 1
crore in 59 minutes in reality the
experience has been that MSMEs
continue to struggle for loans. MSMEs
are facing a lot of problems at every step
and it can be seen that banks scared to
grant loans.
Mr. Deepak Karandikar, Vice
President-MCCIA said, “During the
budget it was said that India would
become a $5 trillion economy in next five
years. MSMEs will definitely contribute
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in a bigger way in this. More clarity is
now required in terms of labour reforms,
financing by banks among other things.
Presently it is difficult for small industries
to get loans quickly. Such issues need to
be addressed.”
Mr. Vishwas Mahajan, Member of
Executive Board, MCCIA said, “The
budget focussed on technology, artificial
intelligence and data to manage growth
and economy which is significant. India
has the opportunity of becoming a super
power in the artificial intelligence era.
We will have to wait for details of policy
execution.
Air Marshal Bhushan Gokhale
(retd.), Member of Executive Board and
Chairman, Aviation Committee, MCCIA
said, “The Defence budget has been
increased by 6-7% which is a welcome
move. Hike was also announced in the
military service pay of service personnel
and special allowances given to naval
and air force personnel deployed in
high-risk areas which is important. The
announcement of strengthening the
coastline was also important. The other
important announcement was setting up
of Artificial Intelligence Centre. This will
be valuable for Armed forces as well.
Mr. P. C. Nambiar, Chairman,
Foreign Trade Committee, MCCIA said,
“The budget was excellent, as it has
substantially addressed issues relating
to the social security requirements of the
farmers, un-organised labourers and
also salaried people. Mr. Nambiar also
appreciated the revised system of
importing Capital Goods and Inputs
Duty Free for manufacture and export
along with introduction of Single Point
Approval under Section 65 of Customs
Act. The recent initiative of Trade
Facilitation by digitising the import and
export related documents as well as
leveraging RFID Technology to improve
export logistics is a welcome step. The
only concern is that the Customs IGST is
not merged with general IGST for the
importer/exporter to take ITC in a more
efficient manner.
Dr. Deepak Shikrapur, Member of
the Executive Committee of MCCIA
said, “It was a mixed budget. Nothing
specifically was announced for the IT
sector. The announcement of more
science institutes coming up was
important. The budget highlighted more
impetus on skill development. No
specific exemptions were announced
for 'Make in India' initiative.’
Ms. Manasi Bidkar, Chairperson,
Women Entrepreneurs Committee,
MCCIA said. “It is a balanced budget.
The special mention of LED bulb
distribution, power saving, health
initiatives like Ayushman Bharat were
important. Rs 3000 pension for workers
in unorganised sector was also a
welcome decision.”

Perspectives on Indian Defence Industry
Air Marshal B N Gokhale (Retd) In conversation with Sudhanwa Kopardekar
Air Marshal Bhushan Nilkanth
Gokhale, PVSM AVSM VM was
commissioned into the Indian Air Force
in June 1968 in fighter stream. He has
flown over 3500 hours on a variety of
combat and trainer aircraft. The Air
Marshal has seen active operations
during the 1971 Indo-Pak war, on both
Eastern and Western fronts. He is a
Qualified Flying Instructor and Fighter
Combat Leader from the prestigious
Tactics and Combat Development
Establishment.
Air Marshal Gokhale has held a
variety of operational command and
staff appointments during his career. His
operational assignments include
command of a frontline fighter squadron
in which he took active part in the
Siachen Operations and was awarded
Vayu Sena Medal. Later he commanded
a premier airbase during the Kargil
Operations. The staff appointments
include tenure as Directing Staff at the
Air Marshal B N Gokhale (Retd)
Defence Services Staff College,
Wellington and as Assistant Chief of Air
Staff (Operations) during Op Parakram,
launched after the attack on Parliament
in Dec 2001.
The Air Marshal has had
assignments abroad as Flying Instructor
in Iraq from 1977 to 1979 and as the
Defence Adviser at Indian Embassy in
Egypt from 1994 to 1998. He has
functioned as Air Officer Commanding-
in-Chief of Training Command prior to
taking over as the Vice Chief of Air Staff
at Air Headquarters. During this tenure
he had served as a nominated Member
on the Boards of two Defense PSUs,
namely Bharat Electronics Ltd and
Bharat Dynamics Ltd. Air Marshal BN
Gokhale retired as the Vice Chief on 31st
December 2007.
The Air Marshal is a graduate of the
Defence Services Staff College and is M
Sc, M Phil from Madras University. He is
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PVSM, AVSM, VM
Former Vice Chief of the Air Staff
also an alumnus of the Air War College,
USA and a Fellow of Aeronautical
Society of India. He is a recipient of the
Presidential awards, Param Vishisht
Seva Medal, Ati Vishisht Seva Medal
and the Vayu Sena Medal.
On retirement, Air Marshal Gokhale
had been appointed Consultant to the
Principle Scientific Advisor to the
Government of India and also to
Defence Research & Development
Organisation (DRDO). For his post
retirement contribution in the
Indigenous development of Strategic
systems and those for Low Intensity
Conflict, he has also been awarded the
prestigious Agni award on 11th May
2013, known as the National
Technology Day. He has also worked in
the National Security Council and is a
visiting Member to the Union Public
Service Commission, New Delhi.
Recently, he has been appointed as
Independent Security Advisor in the
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Ministry of Home Affairs.
In May 2010, the Air Marshal was
detailed as the Chairman with full
judicial powers, to investigate into the
tragic Air India Express accident at
Mangalore, in which 158 lives were lost.
For the past 6 years since May 2011 the
Air Marshal had functioned as a
Member of the All India Council for
Technical Education, Western Region.
Air Marshal Gokhale is the
Chairman of Maharashtra Education
Society and also of Maharashtriya
Mandal Education Society. He has
served on the Governing Councils of
Deccan College, Pune and the Defence
Institute of Advanced Technology,
Khadakwasla, Pune. He is presently a
member of Symbiosis Planning and
Monitoring Board and on the Governing
Council of Symbiosis Institute of
Management Studies.
He is a Founder Member and
Trustee of Pune International Center.
Since September 2012 he has also
taken over as the Chairman, Civil
10 : \o$~«wdmar 2019
Aviation Committee at Mahratta
Chamber of Commerce, Industries and
Agriculture (MCCIA) and is currently
director on the Board of MCCIA. With
effect from 1st September 2013 he has
taken over as the Director of Centre for
Advanced Strategic Studies, Pune; a
think-tank founded in 1992.
In July 2016 the Air Marshal has
been honoured as Paul Harris Fellow by
the Rotary Foundation.
Q : With your experience in the
Indian Air force could you elaborate
on ideal structure for any force?
A : As regards the operational
aspects we always consider the threat
perception and threat management,
Depending on the prevailing situation
the Armed Forces always need certain
types and numbers of equipment, which
can be used urgently. We also need to
consider the technological asymmetry.
Therefore ideal structure of every force
should be 33 percent new, 33 mature
and 33 going towards obsolescence.
This cycle needs to be maintained not
just for modernising the force structure
for better response but also to possess
visible deterrence. Along with this is the
most important aspect of human
resource. It is important that there is
cycle of such continuity wherein the
operators, maintenance personnel and
other support staff keep upgrading and
honing their skills on newer platforms.
This aspect of modernisation also has
implications on yearly budgetary
provisions.
Q : Can you give a technological
perspective of India's Defence
sector?
A: Since technology is one of the main
drivers for defence equipment we need
to indigenously develop various types of
sensors and seekers, electro optics,
aero-engines to name a few. We need to
get maximum advantage out of the
'offset' programme and not undertake
only CKD or SKD type of assembly
production. Let me also add something
about the Indian Civil Aviation sector,
which is growing rapidly and we are
presently 3rd largest in the world. World
over the Civil Aviation is going through a
lot of technological upgradations. There

are electric engines coming up.
However, in India we produce almost
nothing indigenously and not even
much needed spares. Undoubtedly,
some good developments are taking
place. I have been talking about using
aero engines blended with biofuel for a
long time. In the Indian Air Force, we are
already using 10 % biofuel and during
this year's Republic Day fly-past an An-
32 aircraft was flown using blended fuel.
Few months ago on 27th August 2018,
Spice jet flight had also been flown with
blended bio-jet fuel. Such upgradations
can cut down on cost of operations as
well as become environment friendly.
Indian agriculture sector can also
benefit from such usage.
Q : Can you share your thoughts
about the capabilities of Defence
Public Sector Units?
A : Apart from the Defence Public
Production Units or DPSU the DPP has
allowed the Indian Private Sector to also
play a role in indigenous defence
production so as to bring in competition.
The DPSUs have tremendous
infrastructure and are capable of
integrating bigger systems. For better
productivity, the DPSU infrastructure
can be leased out to the private industry
when not in use. We also need to
establish more facilities for testing pan
India facilities for Quality Assurance
(QA) and certification. It can help in
hastening the production capability of
the private industry and SME sector in
particular. Regarding the Hindustan
Aeronautics Limited (HAL) I always felt
that instead of trying their hand at
various aviation platforms HAL could
have initially concentrated on the design
and production of only trainer aircraft.
The primary trainer HT-2 and the
intermediate jet trainer Kiran or HJT-16
have been excellent designs on which
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scores of IAF pilots have been trained.
Lately the helicopter design is also
developing well. We have been late
entrants in export market and if we
would have concentrated on just 2 or 3
products, India could have been a world
leader in this market segment.
Q: Can you share your views on
private sector participation in the
defence sector?
A: Speaking about the private
sector, there is undoubtedly a need for
competition. In countries like Russia or
USA too there are competing players in
the defence sector. For example in the
aviation sector Russia has Sukhoi and
MiG design bureaus for fighter aircraft,
Antonov and Ilyushin for transport
aircraft. The US has Boeing, Lockheed
Martin and Raytheon to name a few.
When there is competition, there is
always an urge to bring out better
products, which is the need of the hour.
In turn, it will improve the quality of
indigenous products. The Defence
Production Policy has therefore
incorporated the role for Private sector
on par with DPSUs. Airbus is partnering
with Tata group for the production of C-
295 transport aircraft in India. This will
be the first aircraft to be manufactured
by private sector. Such route of
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production in private sector will help in
establishing an ecosystem, which would
allow more ideas in research and
design. It will also help the SME sector
and in creation of jobs. As mentioned
earlier we have looked at the export
market bit late. But with more
competition and better quality and
costs, it will certainly help in more
exports. Modifying defence aircraft
designs for use in civil aviation sector
will also help in economies of scale.
Q: Is there a growing acceptance
at the user level at accommodating
the goods made in India by
competent private players?
A: In the Indian Navy there are
already a number of sub-systems being
manufactured by private sector in
partnerships with DPSUs. Arihant is a
classic example of such synergy. Most
of the Strategic systems have a large
numbers of SME manufacturing various
types of sub-assemblies. Brahmos
missile is another case in point. DPSUs
like HAL, BEL and BDL also outsource
sub-systems to the SME sector
including to some of those located in
Pune. Soon the Indian Army is also likely
to induct artillery guns manufactured in
the private sector. Over the years the
Indian private sector industries have
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excelled themselves in various fields of
manufacturing be it automotive,
software or precision equipment to
name a few. With strategic partners from
abroad, the Indian private industry
should help in faster indigenisation of
defence equipment. However, I must
make one point of caution. It is important
that when we talk about the 'offsets' we
have to be certain that the industries are
really getting the knowledge to
manufacture on our own from that
partner. We need to concentrate on
products we are not able to do on our
own like some of the sensors and
seekers, engine technology etc. Efforts
need to be made to get that knowledge.
We can also follow the Mark-I, Mark-II
philosophy wherein we scale-up or
upgrade the existing design while using
the Mark-I system. Surface-to-Air Akash
missile is a classic case of such follow-
up philosophy of design and
development being carried out by
DRDO.
Q: Can you dwell upon the
opportunities for SMEs in Defence
sector?
A: Apart from feeding to larger
companies, SMEs should be given
opportunities to manufacture spares
and provide product support as part of
'offsets'. This will greatly help the armed
forces as they will not need to wait for
the long logistic chain of getting spares
from abroad as well as delays in
negotiations every year with the OEMs
abroad. We can cut short the time and
procedure by local SMEs providing
spares and product support. This has
important implications on the fleet
serviceability. Even if 2 or 3 aircraft are
grounded at the critical times, it can
affect the whole operation. SMEs can
also be used for manufacturing ground
support equipment including tools and
testers.
Q: Could you share your views on
capital expenditure required keeping
in pace with newer platforms?
A: If capital expenditure doesn't
keep pace with the need for inducting
newer generation platforms in time, then
the inventory becomes skewed, which is
not healthy. Lack of capital expenditure
doesn't give the teeth, which are
required to meet the changing threat
environment or create deterrence.
Q: Your thoughts on Pune as a
Defence R&D, technology and
Production hub
A: I see a great future for Pune.
Firstly, because the city already houses

a large numbers of auto industry, which
also requires lot of precision work. In
addition, there are many software
companies and huge pool of
employable youth from number of
educational and technical institutions.
We also have major Defence R&D
establishments in Pune along with DIAT
as a knowledge partner. In this region
consisting of Pune-Mumbai and Nasik
we have both Public and Private
Industries like the Bharat Forge, L&T,
Mahindra, BEL, HAL, Godrej already
working in the Defence sector. A large
numbers of SME are working in Tiers 2
and 3. Industries from Aurangabad and
Ahmednagar add to this eco-system
due to proximity and ease of logistics.
. SMEs in Pune
Q: How Pune SMEs can leapfrog
into a future hub for defence
manufacturing?
A: In Pune, besides the presence of
DRDO establishments there are a
number of SMEs supplying sub-
systems to the defence sector. Defence
Equipment Manufacturers Association
or DEMA is a classic case of a defence
cluster which carries out R&D and
production. In today's world with ease of
information exchange, even if industries
are not physically co-located like the
proposed defence industrial corridors,
Pune can still be a hub for Make-in-India
programme especially in the defence
sector. If you expand this to the civil
aviation sector, especially when the new
airport comes up in Pune region, we can
set up an MRO, not necessarily on a
huge scale but MRO for corporate
sector aircraft, helicopters and drones.
With this there will be lot of work for
Q: What can be done to achieve
scalability in terms of research and
R&D with focus on defence
indigenisation?
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A: There is presently a need for
setting up an Aerospace Commission in
India. This would help bring together the
civil aviation, military aviation,
commercial private planes and the new
era of drones. It would also bring along
ISRO capabilities among other things.
Aerospace commission will ensure
scalability in terms of research and
development that will be in-house. This
can help build an ideal ecosystem for
'Make in India' initiative especially for
the aviation sector. Aerospace
Commission will bring together
everybody including the SMEs. This will
help in job creation and would be a win-
win for everyone.
Q: How can Aerospace
Commission help in enhancing
Research and Development work?
A: While DRDO does work for
developing technologies for the Armed
forces, missile technologies are
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derivatives of certain ISRO
programmes. On the other hand ISRO
has launched satellites for specific use
by the Navy and IAF. These are
applications which are specific to our
country's requirement and are always
done in consultation with the operators
and defence units. There is a need to
have equipment in hardware and
software in various aircrafts
corresponding to ground equipment.
Now add to this the Civil Aviation sector
in which there is negligible manufacture
or indigenous product support. There is
a need to bring in synergy in military and
commercial aviation as well as ISRO
which will help in better research,
manufacturing process as well as
development of skills and job creation.
All this can be formalised by
establishing Aerospace Commission.
Similar thought process is relevant for
establishment of Maritime Commission.
Q: Your thoughts on Cyber
security which is becoming a major
concern
A: During the recently held
conference in Davos, Switzerland one
14 : \o$~«wdmar 2019
of the major problems discussed was
cyber security. During the initial days
unfortunately India didn't get into
manufacturing of hardware. We
became software giants but everything
that we are using as platforms or
network hardware is imported from
abroad. We cannot be sure if there are
embedded bugs, which could disable
our networks in the time of need. Cyber
security has therefore become very
important not only for defence sector but
also in civil network such as banking,
telecom, railways, aviation and others. It
is therefore important to sanitize the
imported equipment that is imported.
We need to set up labs and develop
tools to sanitise the hardware. We also
need to set up testing tools, which I am
certain is being undertaken for the
safeguarding of Critical Infrastructure.
Q: Can you give examples of
defence establishment capacities
being used for industrial/social
segments?
A: There is possibility of defence
sector companies, especially SMEs
doing work in other civil applications or
social entrepreneurship. Volumes of
defence equipment are not necessarily
very high. But the high precision
equipment can also be used for
manufacturing medical equipment and
in human anatomical replacement
technologies. For example, DRDO had
developed an implantable tooth at much
cheaper cost for charitable hospitals.
DRDO has also developed many items
needed for food and clothing, which can
be easily manufactured by the SME
sector. It is quite possible to develop
newer products as a spin-off. Concept of
R&D only by concentrating on DRDO
operations is changing. They
themselves are promoting knowledge
partners in IIT Chennai, IIT Mumbai.
Likewise, private sector can get into
some amount of R&D and it can be used
beneficially.
Q: Your views on India's relations
with Israel
A: We have been very happy with
our partnership with Israel mainly
because in the earlier years when the
western countries were reluctant to give
us technology, we found Israel could

provide us those. Israel also gave us the
possibility of getting the western
technology and at the same time ability
to integrate it with the eastern
equipment, which as you know has
been our predominant inventory. The
air-to-air refuelling aircraft and AWACS
on IL-76 platform with Israeli equipment
are examples of such integration.
Q: There are lot of senior people
who retire after 5-25 years of
commission from various arms of
defence. Can they contribute in some
way by teaming up with the private
sector?
A: This is the need of the hour. The
armed forces are also trying to make
such placements for the veterans. For
the past many years Indian Air Force
has been holding regular placement
rallies in different cities and with good
response. In Pune itself a number of
veterans have been employed at high
positions as well as consultants. They
can certainly add a lot of value as they
know exactly what is the field
requirement and those inputs are very
important to the defence industry. In
Pune a facility has been created for the
ex-servicemen to undertake small scale
manufacturing and the aim has been to
try and create a kind of cluster so that
there are different skills within that
facility so as to create synergy and not
unhealthy competition. On the same
lines the defence support sector like
communication, IT, logistics and supply
chain management has requirement of
experienced personnel, which can be
fulfilled by ex-servicemen who have
hands on experience. Disaster
management is another area for which a
lot of equipment can be manufactured.
The experienced people from armed
forces can also get into these sectors of
industry.
Q: Your message for youngsters
who want to serve the armed forces
or young entrepreneurs who want to
enter defence production segment
A: People wanting to join the armed
forces are most welcome. Even though
everybody works for the nation but when
one serves in the armed forces it's a
different way of contribution since one is
ready to face any aggression against
the country even at the cost of one's life.
For entry in the services, the National
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Defence Academy (NDA), College of
Military Engineering (CME) and the
Armed Forces Medical College are
located in Pune. Defence Institute of
A d v a n c e d Te c h n o l o g i e s a t
Khadakwasla also offers post-graduate
courses useful for defence industries.
As regards entrepreneurship and
manufacturing, it is very good to get in to
this sector but one must have patience
and enough back-up since the volume
of requirements may vary and there is
competition. There are fair numbers of
SMEs who are already competing. So,
having niche ideas becomes important.
Economies of scale are what young
entrepreneurs will have to worry about.
Tie-up with bigger industries could help
in the initial stages.
----------------------------------------------------
Air Marshal Bhushan Gokhale (retd.)
Member of Executive Board, MCCIA
and Chairman, Civil Aviation
Committee, MCCIA
Email : bingomeghana@gmail.com
: \o$~«wdmar 2019 15
 www.facebook.com/PuneMCCIA
DRDO Labs and Establishments
in Pune and Ahmednagar
The Indian Defence Industry is a
very important sector in India. It has over
1.39 million active personnel and is
world's 2nd largest military. Despite
having a modest internal defence
industry, India is known to be the largest
importer of arms in the world.
Earlier to 2011, the production of
Indian defence equipments was solely
in the hands of the government. This
scenario has changed since. The
Government opened up the Foreign
Direct Divestment (FDA) to 49% from
the existing 26%. This increased the
flow of funds from foreign countries. The
increase in FDI cap aims to attract
private companies from many
developed countries to invest in the
Indian defence economy.
With the government keen on its
'Make in India' initiative, several small
and medium-sized enterprises (SMEs)
can presently cater to the defence
industry. According to the Department of
Defence Production, the capability and
16 : \o$~«wdmar 2019
viability of the defence and aerospace
industry is built on the strength of supply
chains, in which the MSMES are
intricately intertwined. There are
substantially large number of MSMES
across the country supplying
components and sub-assemblies and
systems to the Defence Public Sector
Undertakings, Ordnance Factories,
Defence Research and Development
Organization and private industries.
The Department of Defence
Production has emphasized that the
government has been putting special
focus to provide special incentives to
MSMES in the policies; be it Offsets,
MAKE Procedure, reservation in
procurements. According to the
Department of Defence Production,
interaction with vendors and concerned
stakeholders are organized regularly at
various levels to understand their issues
and decisions are taken to address their
concerns.
Presently the SMEs in India can
Compiled by Jui Dharwadkar
mainly cater to the defence sector by
supplying sub-assemblies and
components and providing services like
system integration. Under the Make in
India initiative, defence organizations
are set to enhance their manufacturing
and development efficiency, thereby
contributing to making India self-reliant
in defence production.
We have made an effort to profile
some of the DRDO Labs &
Establishments in Pune and
Ahmednagar :
1) Armament Research &
Development Establishment, Pune
Established in 1958 under DRDO,
Armament Research and Development
Establishment (ARDE) reached its
Diamond Jubilee milestone in 2018. The
task of Armament R&D was entrusted to
ARDE to achieve the cherished goal of
self sufficiency in the vital field of
Armaments. The design and
development of armament stores is

highly interdisciplinary, the desired
quality standards are stringent and
reliability is of paramount importance.
ARDE strives to meet these conditions
and satisfy the weapon and ammunition
requirements of the Armed Forces.
As the nodal system lab of DRDO in
the conventional armaments area,
ARDE has to interface and interact with
a number of external agencies - the
Services (the customers), the
Production Agencies (OFB, PSUs and
Private industry), the Quality
Assurance Agencies, Research &
Academic institutions. The Charter of
Duties covers :
● Design & development of
conventional armaments for the
Services and Para-military Forces
● Basic & applied research, modelling,
simulation, software development in
the field of conventional armaments
● ToT to production/QA agencies and
productionisation
● Pilot Plant production of critical
stores & materials
● Assistance to industry in production
of armament stores
● Life extension and Product
Improvement Programmes (PIPs)
for in-service equipment
● Development of armament stores
for non-MoD Agencies
The most significant aspect of
ARDE's R&D work is design and
development of weapon systems for all
the three branches of the Armed Forces
- Army, Navy and Air Force. For the
infantry, artillery and tank applications,
ARDE has developed the INSAS family
of rifles and ammunition, land mines,
mortar systems and gun systems which
includes rifled barrel gun, recoil system
and the complete carriage system for
MBT Arjun. The 155 mm Advanced
Towed Artillery Gun System (ATAGS)
being developed for artillery is one of the
most prestigious programmes under the
Make in India initiative. FSAPDS kinetic
energy projectiles and HESH
ammunition for MBT Arjun gun and
FSAPDS ammunition for T-72/T-90 tank
gun are under advanced stages of
development.
A variety of naval weapons and
ammunition have been developed over
the years, including mines, gun
ammunition, rockets and electronic
countermeasure systems.
Another niche area of expertise of
this premier establishment is artillery
rockets, which has been successfully
demonstrated by Pinaka Mk I and
Pinaka Mk II rockets. Pinaka Mk I is
currently under production, with the
Indian artillery acquiring thousands of
these rockets. Having performed
successfully during the Kargil War, 2
regiments of Pinaka Multi Barrel Rocket
System have been raised, 2 more
regiments are being realized and 6
more are in the pipeline. ARDE has also
developed technologies for Enhanced
Range 122 mm rockets successfully.
ARDE houses a warhead design
center of excellence, which strives to
enhance the glory of Indian missile
programmes by providing world class
warheads with unparalleled lethality.
Some of them include PF, incendiary,
submunition and RDPF warheads for
Prithvi missile, tandem HEAT warheads
for anti tank missile, penetration cum
blast warheads employing thermobaric
charges, warheads for cruise missiles
and warheads for torpedoes launched
against underwater threats. ARDE has
expertise in development of fuzing
systems for various land, aerial and
underwater ammunition as well as in
development of Safe and Arm devices
for warheads.
Extending the 'service to the
services' motto to the Indian Air Force
needs, ARDE has developed expertise
and successfully delivered various
classes of air delivered bombs ranging
from 250 to 1000 kg for various fighter
aircraft such as Jaguar, MiG, and
Sukhoi-30.
Keeping pace with the advent in the
military technologies and needs of the
present day armed forces, viz., precise
hit with minimal collateral damage,
ARDE has undertaken design and
development of Precision Guided
Munitions. The laser guided Anti Tank
Guided Missile for MBT Arjun, Precision
guidance kit for 500 kg air delivered
bomb and guided Pinaka rocket system
are some of the ongoing programmes. A
programme has been undertaken to
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develop an electromagnetic rail gun that
can propel a projectile with
hypervelocities to create a devastating
effect on intended targets.
ARDE is proficient in the
development of Power cartridges for
aerial platforms and PZT technologies
for various military applications.
Advanced aerodynamics, ballistics and
CFD studies are carried out using latest
techniques and infrastructure.
ARDE's core competencies are
backed by excellent and dedicated
human resources, state of the art range
and instrumentation facilities, well
equipped prototype manufacturing unit
and a modern information centre.
2) High Energy Materials Research
Laboratory (HEMRL), Pune
High Energy Materials Research
Laboratory (HEMRL), Pune is one of the
premier Lab under the Armament
cluster of DRDO. The history of HEMRL
dates back to 1908, when it started as
the Chemical Examiner's Office at
Nainital. There were a number of
changes in name, location and charter
before the Lab. Finally, it found its
rightful place at Pune in 1960 as
Explosives Research & Development
Laboratory (ERDL), a name it was
known by for 35 years before it was
appropriately renamed as HEMRL on
1st March 1995 in order to cover entire R
& D activities in all the wings of High
Energy Materials like Rocket and Gun
propellants, High Explosives,
Pyrotechnics, Pilot Plant,
Instrumentation etc. Today, this
laboratory is spread over an area of 850
acres at Sutarwadi, 20 kms away from
Pune city. HEMRL is an ISO 9001-2008
certified Lab.
HEMRL aims to develop expertise
and technologies relating to high
explosives, propellants and
pyrotechnics and transfer the
technology to industry. Enhance the
infrastructure and scientific
understanding to meet the futuristic
challenges.
High Energy Materials Research
Laboratory (HEMRL) has the following
main areas of work.
● Development & evaluation of Solid
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Propellants for Rockets & Missiles.
● Development & evaluation of Solid
Propellants & Cartridge Case
Technology for Gun Ammunition.
● Development and evaluation of High
Explosive Compositions, advanced
generation of Fuel Air Explosives
and Thermobaric Explosives.
● Design & development of
Pyrotechnics.
● Development of Explosive Reactive
Armor.
● Basic and applied research on all
aspects of High Energy Materials
including the Synthesis,
characterization & evaluation of
advanced High Energy Materials.
● Design & establishment of Pilot
Plant Facilities for High Energy
Materials.
● Testing & evaluation of High Energy
Materials.
● Design, development and
fabrication of wide range of
instrumentation / electronic
equipments for study and evaluation
of High energy materials.
● Technical assistance, guidance or
consultancy services to other
18 : \o$~«wdmar 2019
institutions / organizations, on
matters pertaining to high energy
materials, their applications and
production.
3) Research & Development
Establishment (Engineers), Pune
Research & Development
Establishment (Engineers), Pune traces
its origin to the Inspectorate of Engineer
Stores set up at Kolkata during World
War II for exercising quality control on
stores of indigenous origin and to
provide guidance to manufacturers
producing items used by the Services.
This was amalgamated with Chief
Inspectorate of Mechanisation at
Chakala in Pakistan in 1946.
After partition, this Inspectorate
shifted to Ahmednagar and was
designated as Technical Development
Establishment Vehicles (TDEV). With
the expansion of activities of DRDO,
need for a separate establishment for
design and development of equipment
for the Corps of Engineers was felt and
R&DE(Engrs) was established at Dighi
in Pune on 09 Feb 1962. R&DE(Engrs),
Pune, is a premier systems laboratory of
DRDO engaged in the indigenous
development of various engineering
systems for all the three wings of the
Indian defence forces. R&DE(Engrs)
has developed and delivered state-of-
the-art Combat Engineering - Military
Bridging, Mine-warfare and allied
systems, Ground Support Systems and
Launchers for Weapon programmes
and Field-Defence & NBC Collective-
protection systems. The establishment
is also working in the areas of Robotics,
Composite products and Micro-Electro-
Mechanical-Systems (MEMS).
R&DE(E) was the first DRDO
laboratory to obtain ISO 9001-2015
certification. It is also the first lab to have
introduced office-automation and the
concept of paperless office.
Its mission is to design and develop
high performance engineering systems,
equipment, products and technologies
related to :
● Mobility and Counter-Mobility
Systems
● Field Defence and CBRNe

Collective Protection Systems
● Launch Systems for Weapons and
Unmanned Aerial Vehicles
● Advanced Products using
Composite Materials
● Robotics and Unmanned Systems
● Micro Electro-Mechanical Systems
● Specialized Power Systems and
Solutions
● Specialized Engineering Equipment
and Solutions.
The establishment is striving
towards design and development in
the following areas:
● Military Bridging Equipment
● Mine Warfare Equipment
● Electro-hydraulic drives, actuators
and controls.
● Electrical drives, actuators and
controls.
● Specialized Shelters and Equipment
for Field Defence and NBC
environment
● Launch systems and associated
Ground System Equipment for
Strategic and Tactical Systems for
Air, Ground and Sea based
applications.
● Customized Electrical power
sources for Military Applications.
● Robotics and Unmanned Systems
for Military Applications
● Composite structures
● MEMS based sensors and
actuators.
● High pressure pneumatics and
pressure vessels
● Specialized platforms for Military
Applications
Thrust areas:
● Military Bridging Systems
● Mine Warfare Systems
● Launching Systems
● NBC Protection Equipment
● Robotics and Unmanned Systems
● Large Composite Structures
● MEMS based sensors and actuators
4 ) Ve h i c l e s R e s e a r c h a n d
Development Establishment (VRDE)
The history of Vehicles Research
and Development Establishment
(VRDE), dates back to 1929, when the
Chief Inspectorate of Mechanical
Transport was formed at Chaklala (now
in Pakistan). In 1947, the Inspectorate
was shifted to Ahmednagar and was
renamed as Technical Development
Establishment (Vehicles), popularly
known as TDE (V). In 1962, the
Engineering Wing was separated with
an independent establishment at Pune,
namely Research and Development
Establishment (Engineers), popularly
known as R&DE (Engrs). Further in
1965, the activities were bifurcated
between 'R&D' and 'Inspection' and two
separate establishments' viz. Vehicles
Research and Development
Establishment and Controllerate of
Quality Assurance Vehicles (CQAV),
came into existence. In 1966, a
detachment of VRDE was created at
Avadi, Chennai, to assist in production
of tanks at Heavy Vehicle Factory,
Avadi, which eventually led to the
formation of Combat Vehicles R&D
Establishment (CVRDE) and further
bifurcation of roles. Vehicles Research
and Development Establishment
(VRDE) is assigned with the
responsibilities of Research, Design,
Development, Technical trials and
evaluation of all types of Wheeled
Vehicles including Transporters,
Trailers and various types of Specialist
role vehicles viz. Unmanned Ground
Vehicle (UGV) including vehicles of
strategic role & engines for UAV's.
In 1986, VRDE was assigned the
additional role of design and
development of Light Tracked Vehicles
up to 25 t class. VRDE is an ISO:
9001:2008 Certified Laboratory.
The mission of VRDE is
● Research, Development, Trial and
Evaluation of :
■ Specialist Vehicles & Launchers
for Strategic Missile Program
■ Combat and Combat Support
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Vehicles - Light tracked (Upto
25t GVW)
■ Combat and Combat Support
Vehicles - Wheeled
■ Engines for UAVs (Rotary and
Reciprocating)
■ Unmanned aerial (Upto 150 kg
AUW) and unmanned ground
vehicles
The current thrust areas of VRDE
are as follows: -
a. Ground support vehicles for security
sensitive strategic programmes.
b. Development of Technologies for
Combat Vehicles.
c. Development of rotary engine for
Two and Four stroke engines for
UAV applications.
d. Development of Tele Operated
Autonomous Unmanned Ground
and Aerial System Technologies.
e. Performance evaluation of defence
vehicles using Bio-diesel.
f. Family of Armoured Wheeled
Vehicles.
g. World class testing facilities and
services at NCAT.
References :
http://makeinindiadefence.gov.in/pages
/fdi-policy-in-defence-sector
https://en.wikipedia.org/wiki/Defence_i
ndustry_of_India
https://www.drdo.gov.in/drdo/English/in
dex.jsp?pg=alphabatic.jsp
----------------------------------------------------
Compiled by
Jui Dharwadkar
sampada@mcciapune.com
: \o$~«wdmar 2019 19
 www.facebook.com/PuneMCCIA

Local Suppliers to Get Purchase Preference

for 109 Defence Items
Amit Cowshish

DPP 2016 was a path breaking documents in many ways, but was yet not quite adequate to either boost defence exports
or bring in additional FDI in the sector. However, the government has thereafter continued to tweak policies in response to the
Indian defence industry's legitimate demands. With the thrust being clearly on indigenisation, policy shifts have addressed
multiple areas, repeatedly. The author analyses some of the areas that have witnessed changes in order to spur the growth of
local suppliers.

Local Suppliers to get Purchase between Rs 5 lakh and Rs 50 lakh, only

Preference for 109 Defence Items
In a long overdue move, the Ministry
of Defence (MoD) has issued a series of
orders between June and September
2018, extending the purchase
preference policy notified by the
government in June last year to the local
suppliers of 109 items. These items
range from air pumps and ventilation
fans to design, manufacturing, supply,
erection and commissioning of capital
equipment like rolling mills and
furnaces.
The term local supplier refers to a
supplier of goods or a service provider
whose product or service meets the
minimum local content requirement laid
down by the procuring agency. In the
case of the aforesaid 109 items the
minimum local content requirement is
specified in respect of each item
separately in the MoD notifications. It
ranges from 10% in respect of some
components of missile systems like
Akash, Invar and Konkurs to 70% in
respect of Helo Safety nets.
The government policy, which has
now been extended to the aforesaid 109
items, is not applicable to procurements
up to Rs 5 lakh. For procurement
local suppliers are eligible to participate
in the tender if the procuring agency is of
the view that adequate local capacity
exists to generate competition. Where
the procuring agency is not sure that
adequate competition can be
generated, and in all procurement cases
exceeding Rs 50 lakh, local suppliers
will be entitled to the purchase
preference as illustrated below:-
If the overall lowest bidder is a non-
local bidder, he will be awarded only
50% of the order quantity in the first
instance. Thereafter, the balance 50%
quantity will be offered to the lowest
local supplier (participating in the same
bid), provided such local supplier's bid is
within 20% of the lowest bid of the non-
local supplier and also if the lowest local
bidder agrees to match the price bid of
the overall lowest non-local bidder.

20 : \o$~«wdmar 2019

If the lowest local bidder does not
agree to match the lowest price quoted
by a non-local bidder or the local bidder
is unable to accept the entire offered
quantity (50%), the next lowest local
bidder whose bid is within 20% of the
overall lowest bid will be invited to match
the price of the lowest non-local bidder
and the contract will be awarded to such
local bidder if he agrees to match the
overall lowest bid.
If the second lowest bidder does not
agree to match the price or is unable to
accept the quantity offered to him, an
opportunity will be given to the next
lowest bidder, and so on, as long as their
bid happens to be within 20% of the
overall lowest bid submitted by the non-
local bidder.
If any quantity is left over after
exhausting all eligible local bidders, the
left-over quantity will also be offered to
the lowest non-local bidder who had
been awarded 50% of the order quantity
in the first instance.
Where the quantity is not divisible,
and the bid of a local supplier is found to
be within 20% of the lowest bid
submitted by a non-local supplier, the
local supplier will be invited first to match
the price of the overall lowest non-local
bidder and the contract will be awarded
to him if he agrees to match the price. If
he does not agree to do so, the
opportunity will be given to the next
lowest local supplier, and so on. In such
cases, the non-local supplier whose bid
is the lowest can expect to win the
contract only if all the local suppliers
whose bids are within 20% of the non-
local supplier's bid refuse to match the
price of the non-local lowest bidder.
It is evident that the eligibility to
participate in the competition depends
on two factors: presence of the requisite
percentage of local content in the
product or service being offered by the
local suppliers and the price bid being
within 20% of the lowest price quoted by
a non-local supplier. The MoD
notifications not only indicate the
requisite percentage of local content in
respect of each item but also make it
clear that the local content will be
calculated by excluding from the total
cost of the product, the following
elements at all stages of its
manufacturing, production or
assembly:-
Direct costs (including freight,
transportation and insurance) of all
materials, components, sub-
assemblies, assemblies and products
imported into India;
Direct and indirect costs of all
services obtained from non-Indian
entities and citizens;
All license fees, royalties, technical
fees and other fees/payments of this
nature paid out of India, by whatever
term/phrase these are referred to in the
contracts/agreements made by the
vendors or sub-vendors.
Taxes, duties, cesses, octroi and
any other statutory levies in India of this
nature.
The term 'at all stages of
manufacturing, production or assembly'
implies that the local content in all the
bought-out items that go into
manufacturing of the product being
offered by the local supplier will be
aggregated while calculating the total
local content in that product. The local
suppliers will, therefore, need to
incorporate an appropriate clause in
their contract with their sub-vendors
which requires them to reveal the local
content in the item being supplied by
them to the local supplier.
It will be the responsibility of MoD's
Department of Defence Production
(DDP) to constitute a Technical
Committee with internal and external
domain experts for carrying out
independent verification of self-
declarations made by the local suppliers
or the auditor's/accountant's certificates
submitted by them in support of the
claim of local content in their products.
These verifications will be carried out
randomly in case there is a complaint.
The DDP and other procuring agencies
may even prescribe a fee to cover the
administrative cost of handling such
complaints.
False declarations will be treated as
breach of the Code of Integrity entailing
debarment of the offending bidder or his
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successors for a period up to two years,
apart from any other action that may be
permissible under the law. The MoD
orders take effect prospectively and will
remain valid till these are reviewed after
31 March, 2020. While for the present
the orders are applicable to only 109
items, all questions on whether an item
being procured is a defence item
covered by the government policy will
be decided by DDP which is to be the
nodal agency to monitor the
implementation of the orders. It perhaps
leaves a window open for more items to
be included in the list of eligible items on
a case-to-case basis.
Though belated, and largely limited
to what appears to be revenue items,
extension of the government's purchase
policy to defence products is a welcome
step. Hopefully, the percentage of the
local content requirement in respect of
each item has been fixed with due
consideration and will provide a fair
opportunity to the local suppliers to
compete with the non-local suppliers,
match their price bids and win the
contracts. It is a good beginning, but the
effectiveness of the policy will depend
on a dynamic monitoring of the extent of
participation by the local suppliers.
One also hopes that in due course,
the policy will be extended to capital
acquisitions with any changes that may
be required to be made in the conditions
related to indigenous content and the
margin of purchase preference in
respect of the major defence platforms,
equipment, weapon systems and other
capabilities. That will be the real test of
MoD's willingness to promote the
domestic defence suppliers.
----------------------------------------------------
Amit Cowshish
former Financial Advisor (Acquisition) in
the Ministry of Defence
He is a Partner with Dua Associates,
Advocates and Solicitors
Email : amitcowshish@gmail.com
: \o$~«wdmar 2019 21
 www.facebook.com/PuneMCCIA
Walchandnagar Industries Perspective
on Defence Sector in India
Mr. G. K. Pillai in conversation with MCCIA Team
Flight Hardware for Tactical Missiles
Q. Can you give a Technological
Perspective of India's Defence
Sector ?
A. The future for Indian Defence sector
will be shaped by technology. Therefore,
technological superiority through self-
reliance is and will continue to be the
mantra for the future. The Indian
industry by and large has matured
significantly over the last two decades
and is also finding expression in the
defence sector. It is heartening to note
the government's drive to promote self-
reliance over imports, since only such
proactive measures will enable the
Indian industry to really develop its
capabilities. As I perceive it, systems
and equipment in future will have
significantly large proportion of very
high-end electronics. Artificial
22 : \o$~«wdmar 2019
Intelligence and Robotics will have a
growing impact in future.
Nanotechnology with new materials like
carbon composites, metal matrix
composites, stealth coatings, etc. will be
the main structural elements in future.
The Space domain will play a very
important and closely meshed role in
areas of surveillance, communications
and navigation for defence forces.
Q. Can you share some thoughts on
the Research and Development
efforts of Private Sector –
Walchandnagar Industries as a case
Study?
A. WIL has a strong foundation and is
well geared to develop manufacturing
technology. We have done pioneering
work in developing the technology for
G. K. Pillai
use of certain unique materials
pertaining to strategic articles, tactical
missiles and the space sector as well.
Our qualified and highly skilled
manpower, guided by our engineers are
capable of developing any technology
for manufacture of an item or equipment
as required by the country. It is indeed a
matter of pride for us that the propulsion
gear boxes of some of India's strategic
platforms have been designed and
manufactured in-house. The
performance of the gear box has been
reported to be even superior to those
originally designed by OEMs abroad.
This clearly establishes our position as a
potent and lead player in the Indian
Defence sector.
Q. What has been the experience of

Private Sector Participation in
Defence in India so far?
A. This has been encouraging with the
government's thrust on developing the
indigenous manufacturing base. The
opening up of the Defence sector to
private industry has enabled the firms to
enter into collaborations with reputed
OEMs and manufacturers worldwide.
This has resulted in enhanced
capabilities being developed by Indian
firms to comply with International
standards. Indian firms today have
therefore gained in stature. Further, the
incentives offered by the government
and initiatives taken for establishing the
Defence corridors have also boosted
participation of the private sector in
manufacturing for Defence projects.
Q. What is the scenario on Defense
Offsets?
A.The offset policy is meant to take India
closer to the goal of developing a world
class defence and aerospace industry.
The policy provides for extensive control
over selection of an offset partner.
However, while the policy recognises
the need for domestic private
partnership, does not mandate a fair
and diverse procurement process for
offsets. If we consider the large contract
values involved, it is likely that the
foreign OEMs will engage with just one
or two large industrial groups to
discharge their offset obligations. In
order to overcome the limited traction on
offsets, the government is therefore
creating defence industry corridors,
wherein the foreign OEMs can invest in
setting up production facilities.
Investments in such cases will
galvanise MSMEs and will also be at
higher multipliers than the conventional
approach to discharge of offset
obligations.
Q. What more could be done to
increase defence Indigenisation?
A. It is important to understand that the
import route offers advanced
technology and hardware that the
military wants to possess. Therefore,
what is needed is a balanced objective
approach that enables import and also
promotes indigenization. The key lies in
joint and assured investments in R&D
as well as in production. Outsourcing
from the private sector will help the
matured DPSUs to optimize and
35m Mountain Foot Bridge
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familiarize the former with defence
technology. We also need increased
levels of collective participation from the
MoD, DPSU and private industry to give
greater thrust to indigenization. This
should lead to a combination of the best
of both, i.e., the skills and infrastructure
of the DPSU combined with the agility
and execution capabilities of the private
player on the other. The Government
should plan to give incentives to the
private industry for providing an end to
end defence product. The incentives
should be such as a risk sharing
contract, tax relief on production and
R&D, a research grant etc., to help
producers in ensuring that their
business remains viable.
It will be good if the forecast
requirement is made known to the
industry. The forecast could include
requirements of friendly foreign
countries as well. Availability of
pragmatic forecast will enable the firms
to plan for enhancing capability and
capacity, as such orders would be
assured on successful realisation of
prototypes.
: \o$~«wdmar 2019 23
 www.facebook.com/PuneMCCIA
Missile Tilter-cum-Transporter
It is heartening to note that DRDO,
Academia and the Armed Forces have
been working together on certain
projects. When extended to all projects
with the DRDO, the move will give
impetus to self-reliance through
indigenisation. I feel that the
procurement policy should shift from the
existing selection of a successful bidder
which is on the L1 basis alone. The
selection process should give due
weightage to the technical content and
capability in a proposal, thereby
ensuring quality, timely delivery and
reduction in life cycle cost. Further,
development of new equipment or
indigenpoous equivalents should be
done through the Make-I procedure
rather than the Make-II procedure.
Q. Can you share Walchandnagar
Industries' Defence Capabilities and
recent achievements in catering to
the requirement of Armed Forces ?
A. Walchandnagar Industries Limited is
well placed to meet the evolving
requirements of the Armed Forces. We
have a state-of-the –art manufacturing
facility at Walchandnagar, manned by a
very skilled and dedicated workforce.
24 : \o$~«wdmar 2019
Gear Box for Indian Naval Frigate
Owing to the classified nature of
Defence programmes, I will not be able
to give you very detailed description of
our participation in such programmes.
However, I would like to state that we
have developed, manufactured and
delivered very critical equipment
through reverse engineering. This has
substantially reduced our dependence
on OEMs abroad, besides giving us and
the end customer the confidence that
we can deliver indigenous products
meeting atleast the same performance
levels, if not better. The Akash missile
programme is another success story,
where we have been the industry
partner of Bharat Dynamics Limited.
Q. Can you dwell upon the
Opportunities for SMEs in Defence
S e c t o r w i t h Wa l c h a n d n a g a r
Industries ?
A. We are always on the look out for
good SMEs capable of meeting the
quality and delivery requirements as
specified by the Defence sector. As a
policy we would always like to
encourage the SMEs.
Q. Your thoughts on Pune /
Maharashtra as a Defence R & D,
Technology and Production hub for
Suppliers to companies like yours.
A. Maharashtra, and in particular Pune,
possesses the wherewithal to develop
into a R&D, technology and production
hub. The state and city have a good mix
of DRDO labs and Ordnance Factories.
The intellectual capital, coupled with the
capability of manufacturing units
located here provide the ideal mix to
become a production hub. WIL
encourages MSMEs to come forward
and support its programmes. The
Defence and Aerospace production
policy of the Maharashtra state
government specifically aims to create a
'Defence Hub' at Pune, among other
cities of the state. This is a strong
positive move, as it is supportive of the
MSMEs and will create jobs for the
young generation.
----------------------------------------------------
Interview conducted via email
exchange
G. K. Pillai is the Managing Director and
CEO – Walchandnagar Industries Ltd.
email : gkpillai@walchand.com

Make In India - Mission to achieve Self Reliance
Worldwide Oilfield Machine India - Diversifying portfolio in Defence and Railways to
“Make the Difference and Create Value”
Greetings from Worldwide Oilfield
Machine (WOM) India!
It is indeed a great privilege and
pleasure to be able to share the
experience of the diversification
process in Defence under the Make In
India initiative. We congratulate MCCIA
for the excellent initiative to provide the
platform for the necessary connect
between the industries and policy
makers in Defence sector and sincerely
thank MCCIA for this opportunity.
Company Background and the
Positioning in Defence
WOM, Indian MNC, established by
visionary and passionate entrepreneur
Mr. Sudhir Puranik, is a globally
recognized technology leader in the Oil
and Gas Sector a high technology
andhigh risk application area. WOM
was established in Houston, USA in
1980 starting with just 7 employees. It
has grown aggressively over the years
with presence in all major countries with
manufacturing facilities (including a
strategic manufacturing location in
Pune), nearly 2500 employees
worldwide.
WOM has a state-of-the-art
Research and Development (R&D)
Centre in Houston, USA also in Dubai
and the manufacturing Set-upis based
near Pune, India. All facilities comply
with the established norms and
accreditation criteria and are subjected
to various stringent assessments and
audits at regular intervals.
WOM believes and is always
committed to bring in the highest levels
of value propositions and quality norms
in each business areas and have
demonstrated ability and keenness to
invest aggressively and rigorously in
state-of-the-art machinery, resources,
technology aid, testing facilities and skill
up gradation programs wherever and
whenever required proactively.
Accepting the Challenge and Making
the difference is our passion and motto.
WOM's manufacturing plant in Pune
(west side of Pune), established in
1989, is the hub of all manufacturing
activities (Fully Vertically Integrated)
required for the Business. The unit is
(ISO 9000, AS9100, API compliant), a
fully integrated plant having in house
forging (one if its kind development track
record of forged components), casting,
machining, fabrication, welding, heat
treatment, assembly, painting and
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Harshvardhan Gune
NABL certified testing facility, is the
backbone of WOM's global product
portfolio and aggressively supports the
product development and launch
process including testing.
Since late 2017, aligning with the
Vision of Hon Prime Minister Narendra
Modi's “ Make in India”, WOM has been
leveraging the given strengths including
availability of required Infrastructure,
M a c h i n e r y, C o m p e t e n t a n d
experienced team to actively contribute
and participate in 'Make in India'
initiative to achieve self-reliance with a
vision to become a Technology Leader
and a preferred Development Partner in
Defence, Railways/Transportation
Sector, in India, and add value to the
process of Indigenization. WOM has
exhibited core competency in the given
high technology area.
Product Portfolio and Challenge for
Development
Keeping in view the MOD's strategic
focus area for indigenization and
involving private sector in
“Ammunitionand Warheads”, WOM's
strategic product portfolio identification
and development has been in this
domain which also brings in the synergy
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TRANSFER OF TECHNOLOGY
The TOT document was handed over by Hon'ble Raksha Mantri –
Mrs. Niramal Sitharaman during the Ceremonial Event in Chennai
in the core competency area of
mechanical engeneering and related
process being in house.
During the initiation and early phase,
WOM's India team was given a
Challenge by the local DRDO lab to
complete a project with effective
process planning for a crucial
manufacturing process. The team
completed the project within 10 weeks
while the other manufacturers struggled
for nearly a year. The successful
completion of the project with effective
process planning and execution, world
class product quality and one of its kind
quality documentation essentially
proved the Core Competency within
various departments and across
structures in Defence Procurements on
regional and national level.
WOM's significant contribution,
through the diversification process,
is evident with:
Site Assessment, Product Portfolio
and Development Area:
● Vendor Codes and Development:
DRDO, HAL, BEML, Indian Airforce,
Naval Dockyard,Integrated Coach
Factory
● Nominated for Critical Projectsin
Warheads, Rocket Launchers,
Missiles(Air to Surface, Surface to
A i r , A n t i - S u b m a r i n e , Ta n k
Ammunition, ATAGS, Aerospace-
Indigenization Process
● Transfer of Technology awarded to
WOM for manufacturing of Mountain
Footbridges for the Indian Army by
the Ministry of Defence
26 : \o$~«wdmar 2019
Best Technology Award @ Petrotech 2016
(Vigyan Bhawan, Delhi)
● WOM was a part of the Onsite Tour
to forward Areas (Ladakh) organized
by Army Design Bureau (ADB)
involving only selected companies
to understand the problems of the
Indian at high altitude & low
temperature areas
● WOM is closely working with the
development agencies as well as
production agencies of Ministry of
Defence in areas of Ammunition,
Support Mechanisms, Mechanical
Assemblies for and Aerospace on
the crucial projects and also aligning
with Strategic Partners and Tier 1
suppliers.
● WOM has been recommended as
potential technology partner to
delegate companies from Russia,
France, Czech Republic
Active Participation and Support to
Associations for the Connect:
● Actively involved in formulating
inputs to Policy Making for
Defence & Aerospace through
Associations and Defence
committees is a recognized
Industry Champion to speak and
and share views in various
prestigious events
● WOM also received Special
Invitation in the recent past for the
Close group Meetings in MOD
including RM, Secretary Defence
Production representing
associations & has been
represented at various platforms/
forums & events of the Indian Army,
Navy & the Airforce,
● Initiated a supply chain consortium
with the help of MCCIA
● Initiated Industry connect platforms
for Tier 2/Tier 3 cities like Nashik,
Aurangabad through Associations
● Initiated awareness programs on
Defence Procurement Procedures
for Industries
Conceptualization of Collaborative
PPP model through Defence Hub:The
upcoming Defence Hub in Vidarbha to
create an eco-system for Indigenization
has been conceptualized and being
supported by Tata Technologies Ltd.
Challenges :
We feel the most crucial challenge
has been the very long gestation period
and overall pace and milestones of the
procurement procedures. The
rationalization of the same to a more
rationalized and sustainable basis will
most definitely enthuse and attract more
private participation if defence
production.
'Make in India' vision of our Hon
Prime Minister Shri Narendra Modi, and
initiatives of Ministries of Defence and
Railways to achieve self-reliance poses
immense opportunities to the Indian
industries. The sector is yet to be fully
evolved and systems, policies,
procedures being laid down and
established. We feel proud to be an
important and recognized partner in the
indigenization process.
“Jai Hind”
----------------------------------------------------
Harshvardhan Gune
Head –Strategic Products Div., WOM
Email : harshg@womindia.com

Analytics and AI in Defence Systems
1 INTRODUCTION
With the availability of massive
amount of data and sheer advancement
i n p r o c e s s i n g p o w e r, A r t i f i c i a l
Intelligence (AI) has made a significant
leap in recent years. It has impacted
humankind in multiple ways and through
multiple domains. A general definition of
AI is the capability of a machine to
perform tasks that normally require
human intellect, such as visual
perception, speech recognition,
language processing and decision-
making.
Many times, AI is misunderstood as
an automated system but there is big
difference in AI and automated systems.
An automated system is a rule-based
system in which a computer reasons by
a simple or complex “if-else” kind of
rules, making this a deterministic
Dibyanshu Dwivedi, Yogesh Badhe, Sunil Agrawal
Persistent Systems
system. On the other hand, an AI system
is an autonomous system, one that
reasons probabilistically given set of
inputs. It means an AI system guesses
the best possible course of action for
provided input data and can produce
range of behaviours for range of input
variations [10].
AI is applicable everywhere across
the domains wherever human
intelligence is playing a role.
Application of AI in a country's
defence is no longer limited to only sci-fi
movies. Use of drones, robots and
intensive hacking systems are today's
realities. Developed countries have
already made a significant progress in
the application of analytics and AI in
their defence system. The U.S.
Department of Defence (DOD) is
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developing AI applications for a range of
military functions. AI research is
underway in the fields of intelligence
collection and analysis, logistics,
cyberspace operations, command and
control, and a variety of military
autonomous vehicles. AI applications
are already playing a role in operations
in Iraq and Syria, with algorithms
designed to speed up the target
identification process [12]. And all this is
not limited to developed countries only.
Other countries including India are
seriously working to incorporate
Analytics and AI in defence.
2 CURRENT STATE OF AFFAIRS
An analysis by Markets and Markets
indicates that the market size of artificial
intelligence in military is expected to
reach $18.82 billion by 2025, at a CAGR
of 14.75% from 2017 to 2025[3].
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 www.facebook.com/PuneMCCIA
US Government is expending a
large amount of money to bring its AI
capabilities in warfare to the next stage.
The US Department of Defence (DOD)
has already invested around $1.6 billion
in critical areas of defence analytics
including cyber analytics. Further,
NATO Communication and Information
Agency has invested around€3 billion in
overall defence technologies including
AI[2]. SIGINT or Signal Intelligence-
gathering information via signals is also
gaining a lot of momentum.
In USA following systems are under
testing and development [10].
1. Motherships of drones releasing
little baby drones from the air and the
sea
2. Infantrymen and women sporting
exoskeletons
3. Wearable electronics loaded with
combat apps
4. Lone mission commanders directing
swarms of unmanned vessels to
carry out operations are already
being tested at MIT's Computer
Science and AI Laboratory
In the recent past, one of the largest
sources of funding for AI research came
from the Defence Advanced Research
Project Agency (DARPA), which is an
agency of the Department of Defence of
the United States of America,
responsible for the development of new
technologies for use by the military. The
DARPA Virtual Machine Reality(VMR)
system aids intelligence analysts in
searching, filtering, and exploring visual
media using advanced computer
visionand reasoning techniques. The
goal of DARPA's VMR program is to
extract mission-relevant
information(such as the who, what,
where and when), from visual media
captured from adversaries and to turn
unstructured, ad-hoc photos and videos
into true visual intelligence [10].
The UK Defence Secretary had
earlier announced a £800 million fund to
support the project which requires
application of big data and predictive
analytics[13].
China equally competeswith major
world leaders in this aspect. It is
expecting to achieveprogress in next
generation AI technologies like big data,
28 : \o$~«wdmar 2019
robotics, hybrid enhanced intelligence,
and autonomous intelligent systems. In
near future, the value of China's core AI
industry is targeted to exceed 150 billion
RMB (over $22 billion) in value, with AI-
related fields valued at 1 trillion RMB
(nearly $148 billion) [10].
India has already partnered with
some of the Analytics firms for its AI
related demands in defence. Crone
Systems, a New Delhi-based firm
provides technology to measure, detect
and predict border infiltrations. It has
serviced to predict the timing and
seasonal data for the border infiltration
patterns. Another firm called Innefu
Labs is working with the BSF and CRPF
facilitates to offer analytics services that
helps to understand and tackle
agitations, protests by reading social
media posts, news articles and videos. It
gathers the big data and extracts
valuable informationand feeds it to the
military[4].
USA & China have emerged as
leaders in the field of AI and are
employing comprehensive resources
for development of AI based systems in
view of their commercial interest and
national security.
3 AI APPLICATIONS IN DEFENCE
Here we present key applications of
AI in defence with vast possibilities. Few
of them have already been incorporated
and the rest are in early stage of
inclusion in the defence sector.
Figure 1 : AI applicability in defence
systems
3.1 CYBER- SECURITY
Cyber-attacks have become very
common in any type of computer
network establishment. No organization
is anexception, including defence
systems. However, importance of
cyber- security increases many fold in
the defence setup considering
sensitivity and criticality of the
information. Any leaked information can
be used as a lethal weapon to derail
defence systems of any country. AI
enabled web security systems can
leverage historical data pertaining to
previous attacks, which may not be
limited to only defence systems, and
come up with common patterns which
can help to tackle future cyber-attacks.
3.2 WARFARE PLATFORMS
Use of AI enabled weapons and
robots is a key focus area in AI based
programme of defence sector. It can
help to develop efficient warfare
systems and weapons used on land,
naval, airborne, and space platforms[3].
These systems are less reliant on
human errors and can be automated to
an extent of higher degree. AI has also
led to increased synergy and enhanced
performance of warfare systems while
requiring less maintenance. AI is also
expected to empower autonomous and
high-speed weapons to carry out
collaborative attacks. Computer vision
and reinforcement learning are some
key areas under AI which are
extensively used for the development of
these warfare systems.
3.3 SURVEILLANCE
Most of us already know about
drone-based surveillance. These are
unmanned aerial vehicles which can
operate over a large area of terrain to
identify any unusual activity. AI and
deep learning are extensively being
used in drones for image and pattern
recognition. These technologies further
enhance capability of surveillance
systems by incorporating anomaly
detection.
Following are some useful
applications of remote based
surveillance systems-
● Channel remote communication,
both video and audio, to ground
troops and to military bases
● Track enemy movement and
conduct reconnaissance in
unknown areas of a war zone

● Assist with mitigation procedures
after a war by searching for lost or
injured soldiers, and giving recovery
insights for a terrain
● Aid with operations like peace-
keeping and border surveillance
3.4 LOGISTICS
AI is expected to play a crucial role in
military logistics and transport. The
effective transportation of goods,
ammunition, armaments, and troops is
an essential component of successful
military operations[3]. Different AI based
scheduling and optimization algorithms
can be leveraged for this purpose.
Integrating AI with military
transportation can lower transportation
costs and reduce human operational
efforts.
3.5 INTELLIGENCE
A significant amount of data is being
collected in defence system including
satellite imagery, terrain information,
sensor data, and data captured by
drones and robots. These data sets can
be leveraged to come up with intelligent
information by using different AI or ML
based algorithms. Both supervised
learning as well as unsupervised
learning techniques can be used for this
purpose.
3.6 SIMULATION & TRAINING
Simulation & training is a
multidisciplinary field that pairs system
engineering, software engineering, and
computer science to construct
computerized models that acquaint
soldiers with the various combat
systems deployed during military
operations. The US is investing
increasingly in the simulation & training
applications. The US Navy and Army
have each been conducting warfare
analysis, which has led to the initiation of
several sensor simulation programs.
The US Navy has enlisted such
companies such as Leidos, SAIC,
AECOM, and Orbital ATK to support
their programs, while the US Army's
programs are supported by firms
i n c l u d i n g S A I C , C A C I , To r c h
Te c h n o l o g i e s , a n d M i l l e n n i u m
Engineering. Different AI based
techniques are continuously used to
improve simulation and training
programmes[14].
4 AI & MACHINE LEARNING
BASED TECHNIQUES USED IN
DEFENCE
4.1 ANOMALY DETECTION
Anomaly detection (also outlier
detection) is the identification of rare
items, events or observations which
r a i s e s s u s p i c i o n s b y d i ff e r i n g
significantly from the majority of the
data. Typically, the anomalous items will
translate to some kind of problem such
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as cyber-attacks, bank fraud, a
structural defect, medical problems or
errors in a text. Anomalies are also
referred to as outliers, novelties, noise,
deviations and exceptions [8].
4.2 PATTERN RECOGNITION
The field of pattern recognition is
concerned with the automatic discovery
of regularities in data through the use of
machine learning algorithms and with
the use of these regularities to take
actions such as classifying the data into
different categories [9].
4.3 SPEECH RECOGNITION
Speech recognition is the inter-
disciplinary sub-field of computational
linguistics that develops methodologies
and technologies that enables the
recognition and translation of spoken
language into text by computers. It is
also known as automatic speech
recognition (ASR), computer speech
recognition or speech to text (STT). It
incorporates knowledge and research in
the linguistics, computer science, and
electrical engineering fields.
4.4 N A T U R A L L A N G U A G E
PROCESSING
Natural language processing (NLP)
is a subfield of computer science,
information engineering, and artificial
intelligence concerned with the
interactions between computers and
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 www.facebook.com/PuneMCCIA
human (natural) languages.In
particular, how to program computers to
process and analyse large amounts of
natural language data. NLP can solve
problems like sentiment classification,
topic identification, summarization, text
classification, question-answering,
information extraction, etc.
4.5 DEEP LEARNING
Artificial intelligence (AI) is a system
which enables machines to perform
tasks that typically require human
intelligence. It uses machine learning
systems, where machines can learn by
experience and acquire skills without
human involvement. Deep learning is a
subset of machine learning where
artificial neural networks, algorithms
inspired by the human brain, learn from
large amounts of data. In deep learning
the neural networks have various (deep)
layers that enable learning and
capability to learn very complex patterns
in the data. Deep learning has become
very popular now a days due to
applicability on large amount of data and
providing excellent accuracy
performance on complex pattern
learning required in natural language
processing (NLP), Image learning,
cognitive decision making, speech
recognition etc.Convolution Neural
Network (CNN) and Recurrent Neural
Network (RNN) are more commonly
used architectures in deep learning.
4.6 REINFORCEMENT LEARNING
Reinforcement learning (RL) is an
area of machine learning concerned
with how software agents ought to take
actions in an environment to maximize
some notion of cumulative reward. RL,
known as a semi-supervised learning
30 : \o$~«wdmar 2019
model in machine learning, is a 6) https://blog.marketresearch. com/8-
technique to allow an agent to take key-military-applications-for-artificial-
actions and interact with an intelligence-in-2018
environment to maximize the total 7) https://www.forbes.com/sites/
rewards. RL is usually modelled as a cognitiveworld/2018/08/26/4-ways-the-
Markov Decision Process (MDP). RL, global-defense-forces-are-using-
due to its generality, is studied in many ai/#3026019d503e
other disciplines, such as game theory, 8) https://en.wikipedia.org/wiki/
control theory, operations research, Anomaly_detection
information theory, simulation-based 9) https://en.wikipedia.org/wiki/
optimization, multi-agent systems, Pattern_recognition
swarm intelligence, statistics and 10) h t t p : / / w w w . i n d i a n d e f e n c e
genetic algorithms. In the operations review.com/military-applications-of-
research and control literature, artificial-intelligence
reinforcement learning is called 11) D. Silver et. al., Mastering the game
approximate dynamic programming, or of go without human knowledge.
neuro-dynamic programming.The most Nature, 2017
famous applications of RL must be 12) https://fas.org/sgp/crs/natsec/
AlphaGo and AlphaGo Zero[11]. These R45178.pdf
programmes, trained with countless 13) https://www.gov.uk/government/
human games, have already achieved news/flagship-ai-lab-announced-as-
super-human performance by using defence-secretary-hosts-first-meet-
value network and Monte Carlo tree between-british-and-american-
search (MCTS). defence-innovators
14) https://www.linkedin.com/pulse/ 8-
5 REFERENCES key-military-applications-artificial-
1) https://tech.economictimes. intelligence-2018-singh/
indiatimes.com/news/technology/the-
secret-weapon-that-helps-indian-army- ----------------------------------------------------
nab-terrorists-data-analytics/60363905 Dibyanshu Dwivedi
2) https://www.thehindubusiness Technical Expert
line.com/news/big-data-analytics-to- Persistent Systems Limited
steer-military-intelligence dibyanshu_dwivedi@persistent.com
/article9864088.ece Yogesh Badhe
3) https://blog.marketresearch. com/8- Solutions Architect
key-military-applications-for-artificial- Persistent Systems Limited
intelligence-in-2018 yogesh_badhe@persistent.com
4 ) h t t p s : / / w w w. a n a l y t i c s i n s i g h t . Sunil Agrawal
net/data-and-guns-how-ai-is-changing- Innovation and R&D Architect
the-defense-sector/ Persistent Systems Limited
5) https://www.forbes.com/sites/ sunil_agrawal1@persistent.com
cognitiveworld/2018/08/26/4-ways-the-
global-defense-forces-are-using-
ai/#3026019d503e

Success Stories for Suppliers to Defence Sector
DEMA-Committed to Self-Reliance in Defence
“DEMA Manufacturers Association“ (formerly
known as “Defence Electronics Manufacturers
Association“) is an association of about 50 plus
member industries in-around Pune, which are mainly
involved in HI-TECH jobs for Defence. The DEMA
members are highly qualified Technocrats and some
of them have an experience of more than 25 years in
a product development for Defence.
The Technology spectrum handled by DEMA Members
varies from High Reliability Robust Battle, Tank Electrical
items to software Algorithm for Image Processing.
We have members who are engaged in doing jobs like
Missile Launcher Controllers and Sub Systems, Missile
Check – out Systems, Electrical switches for Tanks, Retro
fittings of Air Craft Carriers, Engine control system for Ships
and Submarines, cable Harness for various Vehicles and
Submarines, Fuses for various Rockets, High Precision and
High voltage Power Supplies, sensors, Embedded Systems,
Platforms for Guns, Rockets and antennas, communication
systems, Test benches for Engines and other Hydraulic
Systems and High Reliability Pressure sensors and switches.
Multi Axis precision motion controllers. Aero products and
UAVs, High Reliable UPS, Climatic Test chambers and
Padmashree Electronics, Pune
M/s Padmashree Electronics, Pune is a SSI started by
Mr. Shirish C. Deshmukh. In the early days they
manufactured some instruments and microprocessor
based systems for testing automotive components. But for
last 25 years they are serving only DefenceLabs and
undertake development contracts for Defence projects.
Padmashree Electronics had manufactured India's
first totally computerized Engine Testing Systems,as an
attachment to Eddy current Dynamometer, to test diesel
engines to defence standards, When the IGMDP (Integrated
Guided Missile Development programme) started, at
Padmashree Electronics they had developed an Electronic
Control Unit ( ECU ) for SAM ( Safety Arming Mechanism )
for Akash & Nag Missiles.
In 1992 they were awarded a contract for developing
an electronic control system for static Launcher of Agni-II.
As the system worked flawlessly, they were asked by the
Programme Director of AGNI, to get associated with AGNI
Programme for the development of various systems for
Launchers of AGNI.
At Padmashree Electronics they also developed a
missile check-out System for Rail- Mobile (RAM) and for
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precision machined components etc.
The equipments and systems manufactured by
DEMA Members are Ruggedized and can with stand
JSS 55555 standards as well as EMI/EMC461 C/D/E
standard.
DEMA members have supported some of the
Defence Projects for a period of more than 10 years.
DEMA is interested in participating in the Defence Off-sets
contracts and is sure of executing them successfully. DEMA
believes in Consortium Concept, which is successfully
implemented in many foreign Countries for the development
of a Multi-disciplinary Engineering Systems for Defence. The
Sprit of DEMA is recognized by major DRDO and Defense
Organizations who are lending a supporting hand to DEMA
members in this path to self-reliance.
Behind all this is belief in INDIA's PROGRESS AND SELF
RELIANCE.
Jai Hind
------------------------------------------------------------------------------
Shirish C Deshmukh,
President DEMA
Road Mobile Launchers ( ROM ) of AGNI series of
missiles, which have been deployed at strategic locations
and are working satisfactorilyfor more than 15 years.
Mr. Deshmukh has also witnessed many test-flights of
AGNI, from Wheeler Island which is now Called as Dr. APJ
Abdul Kalam Island.
Within a short span of 45 days, Padmashree Electronics
had developed a remote control and firing system for
solvo firing of 84 mm shoulder launched rounds and
integrated it with Laser Range Finder and a camera, so that
a firing from a distance for 25 mtrs is possible.
All the systems manufactured by Padmashree
Electronics are rugged enough to withstand harsh
operating conditions and meet EMI/EMC standards
------------------------------------------------------------------------------
Shirish C Deshmukh,
President DEMA
Email : demareliability@gmail.com
: \o$~«wdmar 2019 31
 www.facebook.com/PuneMCCIA
Theta Controls, Pune
Theta Controls is a professionally managed company, over
30 years old, involved in Industrial Automation, Measurement
& Control. Headed by an IIT graduate, we have a strong and
dedicated team of about 90 personnel, for customer
requirement analysis, design, engineering, integration,
manufacturing, installation, commissioning and after sales
support.
Our activities, at present, fall under 3 main categories :
Design and Manufacturing
We Design and Manufacture various products in the
segments of Embedded, Power Electronics, and discrete
Electronics, in the fields of measurement and control. Some
of them are as given below. In all of these, we have our own
in-house design, assembly and testing team. We also
provide warranty and after sales support We also undertake
custom equipment development for Industry, Research
Organizations, as well as DRDO’s. We are one of the
Production partners of ROV-Daksh, developed by the DRDO
for the Armed Forces. We have so far integrated 6 of these
vehicles. This involves procurement of raw material,
assembly, testing (including trials by CQA) and support at
site. We are making many units for the DRDO, Defense
Digitronics, Pune
Vijay Damle, President, Digitronics
After completion of Masters, (M. Sc Electronics)
in 1964, he was selected for prestigious Hindu
Hitachi scholarship (Joint venture of ‘The Hindu’ –
Top ranked News paper in India and ‘Hitachi’
institute – Japan) and went to Japan for training for
one year.
After intensive Japanese language course, he
started training in Semiconductor, Vacuum tube and Picture
tube manufacturing. He also got trained in manufacturing of
Main frame computers, Analog Computers, Telephone
Exchanges. He was trained in Instrumentation, Radio and TV
manufacturing factory for about one or two months each.
In 1966, after returning to India, he started linear power
supply manufacturing in joint venture in Pune. In 1975, He
started Digitronics. Initial focus was on Digital measurement
instruments for Automobile sector. Around 1978 he got
opportunity to manufacture “build to print” (BTP) power
supplies and other electronic products for ICIM (International
Computers India Manufacture Ltd). In 1981 he developed
multi output switched mode power supply for Minicomputer.
Later in 1984 he started concentrating on high wattage power
supplies for Defense.
Today, DIGITRONICS, specializes in design,
development and manufacture of custom built Switch Mode
Power Supplies, High wattage / High density DC-DC
converters, Linear Power supplies. Variable voltage/current
power sources, 704D testing power sources (DC), Universal
32 : \o$~«wdmar 2019
PSU’s, as well as Private organizations in defense
We are also manufacturing a few products, based on the
technologies developed by BARC
System Integration
We also integrate systems, with the PC as a main controller,
mainly for Automatic testing, Data Acquisition systems, and
SCADA systems.
- PC Based Solutions - LabView and VB and Hardware
integration through PLC, PID, PLC or Motion Controllers etc.
● Automated Test Equipments
● Data Acquisition Systems
● SCADA Systems
Distribution
We are distributors for various companies, for products
ranging from Industrial Networking, to Process instruments
like Paperless Recorders, PID Controllers, Power
Regulators, etc
We not only supply products, but also provide technical
support, after sales service, and also provide complete
systems to the customers, should they so desire.
input power factor corrected Front End SMPS,
Programmable power supplies (RS485/ RS232/
Ethernet), Source cum Sink Units (Battery
Simulators), Ni-cad & Li-ion battery Chargers.
These all products are designed / built as per
customer specifications. They are reliable, rugged
and are designed and developed as IMPORT
SUBSTITUTES by team of experienced R&D
Engineers for prestigious customers in
Private/Public, Space and Defense sector. Almost all
products have gone through extensive testing as per MIL
standards and JSS 55555.
Digitronics have designed and manufactured various
ratings of switched mode power sources rated right from 10W
to 77KW.
Digitronics is ISO 9001-2008 certified.
Awards :
1. DEMA (PUNE) Excellence Award 1994 : " Indigenous
Design, Development and Supply of Switch Mode Power
Supply (SMPS) to Defense
2. DEMA (PUNE) Excellence Award 1996 : (Joint) Design,
Development and Supply of On Board Transmitters
3. DEMA (PUNE) Excellence Award 2001 : Design,
Development and Supply of High Wattage Density DC-
DC Converters for Military Requirements.
4. C-DAC "PARAM9000 Product Development Support
Award" in 1995.
5. Industry Appreciation Award 2007 from NSTL.

Aeron Systems Pvt. Ltd., Pune
Aeron Systems Pvt. Ltd., headquartered in
Pune is building deep tech products namely a)
Inertial Navigation Systems and b) IoT devices
for industries such as Aerospace & Defense,
Automotive, Renewable Energy and Industry
4.0.
The Inertial Navigation System (INS) is a
sensitive and critical piece of equipment which
provides extremely accurate motion
parameters e.g. position, speed, attitude, heading,
acceleration. The platforms such as Aircrafts, Ships,
Robots, Drones, Driverless car, amongst others use INS for
navigation, guidance and control. The technology is closely
guarded by handful companies globally, and licensing is rare.
Aeron with its successful supply of tactical grade Inertial
navigation systems to the Indian defense forces, defense
production agencies, private sector companies and
development laboratories (DRDOs) has joined this select
band of global suppliers.
Badawe Engineers Pvt. Ltd.
Badawe Engineers Pvt. Ltd., (BEPL) established in 1984.
Principle objective of BEPL is to work in the field of Indian
Defense applications Activities of BEPL include design
development-production and commissioning of control
systems for industrial and other critical applications.
BEPL has been active in development assignments for
weapon sub-systems. The manpower is trained to meet the
stringent quality control and product reliability requirements
of a weapon system. The systems were subsequently
integrated in the main battle equipment by BEPL.
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The IoT Devices offered by Aeron include
Wireless Data Loggers and Data Gateways.
These devices when connected with sensors,
perform data acquisition, analysis and
transmission to the web cloud. The Wireless
Data Loggers and Data Gateways from Aeron
meet tough industrial standards for reliability
and ruggedness. Aeron has acquired a
dominant position in the solar plant monitoring,
weather, and environment monitoring space.
Aeron was set up in 2008 by Ashvani Shukla (CEO), an
aerospace engineer from IIT Kanpur and Abhijeet Bokil
(CTO), an electronics engineer from Pune University to
indigenously develop Inertial Sensing technology. After 10
years of work, Aeron has become a trusted name in this field.
Area of expertise include, STABILISED PLATFORM,
MULTIAXIS PLATFORMS FOR ARMY NAVY AND
AIRFORCE, TRACKINGS SYSTEMS, TRANSCIVERS AND
T R A N S M I T T E R S U P TO K U B A N D , L U N C H E R
CONTROLLERS FOR VARIOUS PROJECTS, TRACKING
SYSTEMS AND ON-BOARD SYSTEMS FOR UAV’S. Some
of Ruggedized EMI tested products viz. limit switches,
inclinometers.
All these systems have undergone through either
JSS:55555 or MIL-STD-810D and MIL Standard 461
applicable tests.
: \o$~«wdmar 2019 33
 www.facebook.com/PuneMCCIA
SME Founders' Conclave
Over the past few decades Small
and medium-sized enterprises (SMEs)
have been recognised as one of the
fastest growing sectors contributing
immensely to the Indian economy. A
report by The Ministry of Micro, Small
and Medium Enterprises too highlights
the Indian SME sector as one of the
fastest growing industries in the country.
This sector is also expected to surpass
the traditional corporates in terms of
growth and revenue generation within
the next couple of years.
Yet with the market becoming more
competitive and the resources being
limited, the sector continues to face
challenges for further growth and
expansion. With a view to provide a
fresh perspective and approach for the
SME sector, Mahratta Chamber of
Commerce, Industries and Agriculture
(MCCIA), In association with IIM-
Ahmedabad Alumni Association (Pune
Chapter) recently organised the fourth
edition of the SME Founder's Conclave.
The theme for the conclave was 'World
34 : \o$~«wdmar 2019
Class in Pune.’
The conclave brought together
academicians, investors, vendor
development managers and 10X growth
stories from some of Pune's most
successful SME's on the same platform.
The conclave focussed on scaling up
SMEs by helping them to fine tune their
operations which would propel their
company to the next level.
The main objective of the conclave
was to provide a fresh approach to the
SME sector so that they can take a big
leap and propel their company to the
next level. The conclave witnessed an
overwhelming response of SME owners
from across Pune. The conclave proved
to be an interactive event for all the
decision makers and game players in
the SME sector. The conclave
highlighted that the SME sector's
progress is inextricably linked to the
development of the city and by
leveraging the existing educational,
industrial and agricultural resources in
the state, SMEs can propel to the world
stage and hence the theme for the
conclave was #worldclassinpune.
The focus areas during the conclave
were as follows :
1. 10X growth stories from some of
Pune's most successful SME's
2. Investor's selection criteria to
identify high-growth SME stories
3. IIM-A Professor's analysis of SME
growth imperatives
4. Talk from Vendor Development
Managers of Pune's top auto brands
5. Innovative networking games to
engage with other SME founders.
The flow of the events at the
conclave was directed by Geeta
Hosmane from MCCIA and Aditya
Jhunjhunwala, head of IIM-Ahmedabad
Alumni Association (Pune Chapter).
The inaugural session saw the
presence of Mr Pradeep Bhargava,
President, MCCIA, Mr Sanjay Kirloskar,
Chairman, Kirloskar Brothers Ltd who
was the chief guest for the event and Mr
R Gopalkrishnan, former director, Tata

Sons Ltd who gave the keynote address
during the inaugural session of the
conclave.
While presenting the welcome
address, Mr Pradeep Bhargava said,
“Every enterprise starts as a MSME.
Many companies which have made a
mark by getting to the top have also
started as MSME as these are the
building blocks for any enterprise. The
benefit that MSMEs have is the freedom
that they get to try new things and to
innovate. Large organisations are
system driven, process driven and
hence the degree of freedom that they
get is finite.” Mr Bhargava added that
presently everyone is hearing about the
challenges faced by MSMEs. He said
that it must be understood that problems
are everywhere and they are just as
large as we perceive them to be.
“Technology is changing very fast so
there is no certainty. Also hiring and
retaining talent is becoming difficult. But
positives can emerge from these
challenges and MSMEs have the
flexibility which they must use to their
advantage,” emphasized Mr Bhargava.
Speaking on the occasion, Mr
Sanjay Kirloskar, Chairman Kirloskar
Brothers Ltd spoke about the 100 year
long journey of Kirloskar Brothers Ltd
which was started by his great
grandfather. Speaking about the history
of Kirloskar Brothers Ltd, Mr Sanjay
Kirloskar said, “The company was
started by my great grandfather
Laxmanrao Kirloskar in 1888. The
company was started as bicycle repair
shop which grew to become a
multinational company. My great
grandfather always had the fire in his
belly to do something better. He went
bankrupt twice but this never deterred
him. He inspired trust in people. People
helped him during his bad times
because he was known to be a
hardworking and devoted person.”
Speaking about his own experiences,
Mr Kirloskar said that his father always
said that as a managing director many
would appreciate him for the great job
that he has done but in reality, it would
only be known 5 years after one has left.
He added that the things that have
kept him grounded through all these
years is by understanding his
responsibility and believing that one is
accountable for one's actions.
Mr Kirloskar said that without taking
risks one cannot grow but taking
educated risks is more important. He
advised entrepreneurs to think long
term and to communicate their vision to
their team very clearly.
On the occasion, Mr Kirloskar was
presented with a bouquet of 100 red
roses for Kirloskar Group completing
100 years.
While delivering the keynote
address Mr R Gopalkrishnan, Former
Director, Tata Sons Ltd emphasized on
about the mantras that makes
companies live long.
Sharing his views, Mr R
Gopalkrishnan said, “The greatest
enemy of every company is the ego of
the leadership. The self-obsession of a
leader about his contribution to the
company can be dangerous for the
company. In the coming 30 years, any
company's longevity will be measured
through humility and not through ego.
The common lesson that I have learnt
during my career is that power damages
the brain and one must know how to
prevent this damage.” Mr
Gopalkrishnan also advised
entrepreneurs to create adaptive and
tolerant ecosystems and be
conservative with financing. He also
said that living with harmony with the
environment is very necessary while
attaining new heights.
While speaking about what makes
companies live long, Mr Gopalkrishnan
said that leaders should not be busy
doing the wrong things which includes
not thinking about the customer or the
future. He said that the mantra that he
has learnt is that long-lasting companies
live for a consistent purpose. He
emphasized that leaders must organise
themselves to deliver for that long-term
vision.
Sharing the mantras for long living
companies, Mr Gopalkrishnan said,
“Companies must incorporate the
features of the human body like that of
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redundancy and having an immune
system which in case of companies is
having a backup system. Hence
companies must focus on having a
modular and adaptive backup system
and should ensure that they function
with complete harmony with the
environment.”
Summing up the mantras for long
living companies, Mr Gopalkrishnan
said that long living companies live for a
consistent purpose for which organising
oneself is essential. He further said that
creating a very adaptive and tolerant
system is necessary. He added that
being conservative with financing and
living in harmony with the environment
are other important factors for ensuring
that companies live long.
During the conclave, the book titled
'Crash' authored by Mr R Gopalkrishnan
was launched. The book talks about the
rise and exit of CEOs.
Following the inaugural session,
IIM-A professor Dr Chitra Singla shared
her analysis of what makes family
business to break apart and values that
should be inculcated within the young
generation to help grow the business.
Sharing her views, she said, “India has
contrasting stories of family businesses
being either stuck up or prospering for
decades. We conducted a study
following interaction with 10-15
business people who have success
stories to share. From this interaction
we understood that to help family
businesses grow one must have certain
values to take the business forward with
family harmony. These values mainly
include having a giver's attitude, leading
by example for the younger generation
to follow, holding the organisation above
oneself, aligning or celebrating
differences and maintaining
communication on a positive note.”
Singla added that as a SME owner one
must adhere to transparency, fairness
and merit and must nurture talent as a
good team is required to take the
company forward. Singla emphasized
that along with these values, there is
also a need for proper governance
structure in place for bringing in clarity
and reducing conflicts.
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 www.facebook.com/PuneMCCIA
Following the talk by Professor Dr
Chitra Singla, Mr Samit Vartak, CIO and
Partner, Sage One Investment Advisors
LLP spoke on the investor's criteria to
identify high growth SME stories. Vartak
said that as an investor the key things
that one focusses on is firstly the
survival of the company followed by
whether the company is a disruptor, has
prudent growth, is open to learning and
whether the company is an efficient
player. Mr Vartak said that an investor
looks for the product life cycle and trust
is extremely important for an investor.
“Sometimes for an investor the
opportunity looks good but checking the
survival of the company is very
important. To survive one must learn to
differentiate from the competition. To
survive, differentiating by being the best
is important. The other important factor
is that the one must plan expansion very
carefully. For this, one must be aware
about the changing environment, about
the global competition and global
opportunities,” said Mr Vartkar. He
further added that to achieve the
necessary scalability, bringing in
smarter employees also becomes
important. “Investor will look for
products which are consumable rather
than one time. Consumable gives
repeat business,” said Mr Vartak.
Following the talk from Mr Vartak a
session on 10X growth stories from
some of Pune's most successful SMEs
was held.
The first speaker to share her
success story was Ms Shilpa Pophale,
MD, Electronica Leasing and Finance.
Sharing her experiences, Me Pophale
said, ““Our company focuses on
financing MSMEs and helps them
through their success stories. Our
company is the only Non Banking
Financial Company (NBFC) focussing
solely on MSMEs. We started as a
captive financer for group company
manufactured machines. Along with
financing we explored other financial
products during the formative years. We
then faced the biggest recession in the
manufacturing industry from 1999-
2002. Post 2002 we proactively
explored financing of other
manufacturers machines in machine
36 : \o$~«wdmar 2019
tools and plastic industry and used first
hand experience and research to
perfect our understanding of business
models, customers and machines.”
Pophale said that the company later set
up and developed more verticals in
machine financing and developed
innovative products like industrial
property loans, working capital demand
loans and bill discounting.
According to Ms Pophale the mantra
for their success has been passion,
purpose, perseverance, people and
mentoring. She said that the purpose of
their company is creating success
stories which they have focussed on.
Following Ms Shilpa Pophale, Mr
Sandesh Salian, Director DaliSamir
shared his success story and the
challenges faced by him. Dali & Samir
Engg. Pvt. Ltd. caters to several Indian
and Global OEMs and is also directly
exporting to USA. Mr Salian said that his
company which started as a
conventional SME has currently
transformed to a world class
manufacturer. “Earlier we had two
domestic OEMs while presently our
company has over a dozen domestic
and foreign MNC customers and are is
currently supplying to over a dozen
developed countries,” said Mr Salian.
Sharing his experiences of initial
years when the company was growing,
Salian said, “We had an opportunity to
start a unit in Uttarakhand and the
incentives that we were offered were
that power was available at Rs 2 per
unit, labour was as cheap as Rs 150 per
day and there was no income tax for five
years. But the reality was that even if
power was cheap there was no power
available at all. Hence we were forced to
generate power using a generator which
cost us Rs 12 per unit. Also the
manpower available only had
experience of working in farms and
hence manpower had to be sourced
from Maharashtra which added to the
cost.” He said that such experiences
taught him a lot. According to Mr Salian
the most important things that he has
learned over the years are that a
company cannot grow if there is just one
person doing everything. Hence having
a team is important. He said that apart
from the having a good team, having the
necessary systems and processes in
place is also very important.
Following Mr Salian, Namita
Thapar, CFO, Emcure Pharmaceuticals
shared the journey of Emcure and the
early challenges that her father faced as
the founder.
She said, “My father Satish Mehta
refused to join his father's retail store
and entered the pharmaceutical sector.
Emcure Pharmaceuticals Private
Limited was incorporated in 1981 as a
private Limited company. Later my
father decided to start developing his
own products in pharmaceuticals. At
that time we were ranked 125th while
today we are amongst the top ten
pharmaceutical companies. In 2001, my
father decided to set up a US FDA
facility which was another big risk taken
by him. Through his journey my father
faced a lot of challenges and went
bankrupt twice.” She said the qualities of
her father which helped the company
attain newer heights included him being
an eternal optimist, hard working and
having very high integrity. She said that
for a company to grow the qualities that
one must have is that one must be ready
to take risks, must always have a plan
and a checklist. She added that learning
from mistakes has helped her make a
mark in her company.
Followed by Thapar, Mr Gopal Amin
, Vice Chairman, SLK Global shared his
success story. He said, “Me and my
brother started working from our dining
rooms during the early days of the
company. Today we have around 600
people working with is and our company
has a turnover of around Rs 1000 crore.”
Sharing his views on what must be done
to help the company grow, Mr Amin said,
“We need to understand that we cannot
let dead wood remain in the company.
Hence having able employees is very
important. Same goes with products.
One must let go with products not
generating profits and should not
remain emotionally attached to them.”
Mr Amin further said that never giving up
is the key for successful businesses.
“There needs to be an introspection of
whether your brand is recognised in the
market or not. Having one's own brand
is important for long term sustainability. I

always analyse whether the decision
and directions taken by me are right or
not which is very important.”
The final talk of the session on 10X
success stories was delivered by Mr
Sudarshan Bhide, Co-Founder and
CTO, Acellere Software Pvt Ltd. Sharing
his story, Mr Bhide said that Accellere
Software Pvt Ltd is an Indian-German
startup. “In today's world everything that
we do is indirectly controlled by
software. Software failures are large,
more visible and more costly. They can
result in financial, legal and even safety
implications,” said Mr Bhide. He said
that to address these concerns, his
company has developed a product
which identifies the flaws in a software
and suggests ways to fix them. He said
that company was a consulting
company for the first four years since it
was started in 2009. “Later we started
transitioning to a product company and
have expanded into USA and Japanese
market,” said Mr Bhide. He too
emphasized on the need for a great
team and said that leaders must
realised that they must be the editors
and not writers. “It is important to hire
people who are result oriented and
enable people to develop and deliver to
scale up the company further,” said Mr
Bhide.
The final session of the conclave
was talk from vendor development
managers of Pune's top auto brands.
Glimpses of SME Founders Conclave
The session was opened by Mr
Subrato Choudhury, Supplier Quality
head CVBU- Tata Motors. Choudhury
stressed on the need for having a quality
plan in place which must be executed.”
Putting controls on processes and
incoming sources of variation can help a
lot in ensuring quality and low cost of
products. Control on processes can give
a lot more returns. To ensure that
quality process is sustained, having
regular audits is also important,” said Mr
Choudhury. He said that it has been
observed that many times people do not
know the accuracy of their machines
which needs to be done while assessing
critical parameters of the machine. He
said that what needs to be avoided is
overproduction, inappropriate
processes, unnecessary inventory and
unnecessary defects. Mr Choudhury
said that emphasis of vendors must be
on early vendor involvement.
The second speaker for the session
was Mr Navnath Dope, Senior Manager
(Vendor Development), Fiat Group
Automobiles India Private Ltd. He spoke
o n Ve n d o r D e v e l o p m e n t a n d
Challenges. Mr Dope said that for Fiat
Group Automobiles India Private Ltd,
the motto is that a supplier should be
associated long-term. He said for this
the company identifies global suppliers
and a target spreadsheet is prepared for
global suppliers. He said that for
ensuring quality, one tool maker for one
tool part is maintained across the globe.
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The final speaker for the session
was Mr Prasad Dabake, Management
Consultant. He spoke on India as a
supplier for high tech components. Mr
Dabake shared his experience of finding
a supplier for a German Company
looking for automatic transmission part
for premium cars. He said that the parts
had to be zero defect and hence it was a
very high demand job. He said that for
this he focussed on supplier
capabilities, capacities and
commitments. He said that from 200
suppliers who were looked at only 14
were shortlisted as many had weakness
in engineering areas. He said that while
selecting suppliers, emphasis on
leadership was also done. Sharing his
views on leadership, Mr Dabake said,
“In many cases, the leadership did not
understand the significance of the
process. If the top man is committed
then everything flows down well. Hence
effective leadership was crucial as the
products were very challenging and
demanding.” He said that very few
suppliers have all the necessary things
in place to take up high tech
components manufacturing.
Following the talk from vendor
development managers, Kiran Vaidya
from Auto Cluster, Pune encouraged
MSMEs to visit Auto Cluster and make
use of its facilities.
The conclave was concluded by a
vote of thanks from Ms Geeta Hosmane
from MCCIA.
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 www.facebook.com/PuneMCCIA

Glimpses of SME Founders Conclave

38 : \o$~«wdmar 2019
MCCIA News www.facebook.com/PuneMCCIA

Mr Pradeep Bhargava- President, MCCIA welcoming Hon'ble Mr Yogida Swamynaden - Minister for Technology,
Communication and Innovation - Republic of Mauritius at Interactive Session with businness community
organised by MCCIA on 28th January 2019

Mr Suhas Mantri - Member of Executive Committee of MCCIA and Hon.Consul for Bosnia and Herzegovina
presiding over the Interactive Session with H E Mr Mohamed Cengic, Ambassador for Bosnia and Herzegovina
on 29th January 2019

: \o$~«wdmar 2019 39
 www.facebook.com/PuneMCCIA

For Details Contact

Lalit Waykole on Tel: 020-25709196 or
lalitw@mcciapune.com

40 : \o$~«wdmar 2019
 www.facebook.com/PuneMCCIA

ADVERTISE IN

to

Reach out to

Over 3000 Corporate Members of MCCIA

: \o$~«wdmar 2019 41
 www.facebook.com/PuneMCCIA
Making Sustainability
Resonate in MCCIA Members
Sustainability Desk of MCCIA
The 'Sustainability Desk' of MCCIA
facilitates, engages and helps industry
members to adopt sustainability
activities within their facility to grow
sustainably and to improve their triple
bottom line performance. While working
on 'sustainability report' development,
we work with the cross-functional team
members thereby building their
capacities and increasing moral and
intellect of human capital. The desk
applies know-how based on
international learning, experience and
specific case studies and becomes
knowledge partner in the journey of
sustainability of organisations and
making them future ready.
World changing rapidly:
Majority of the industries are
witnessing the changes and
transformative dynamics of the market
with several regulations globally,
nationally and locally. Rising demands
from clients/markets, rising demand for
resources due to urbanization,
population and weather conditions
putting stress on industries and
associated stakeholders like clients,
42 : \o$~«wdmar 2019
employees, suppliers, governments etc.
Overall putting very high pressure on
the revenues and/or profit bottom line of
the balance sheet of the organization.
And hence, it is important to assess the
existing and emerging business risks,
challenges and opportunities to improve
business operations in sustainable way.
Some updates:
We h a v e b e e n w o r k i n g o n
developing sustainability report of two of
industry members and now we are close
to completing the assignment. While
developing the sustainability report for
them, we have interacted with many of
their employees who were involved in
daily business routine work. Through
interactive sessions, we wanted to know
their challenges and goals and how they
work in most effective way for
addressing the challenges and
achieving their goals. We also observed
their struggle on the data recording,
monitoring and analysis of it. The
insights shared by them during the
interactions and discussions convinced
us about their approach and the way
activities are implemented.
Chetankumar Sangole
During the process of development
of their first sustainability report, we
have recognised their initiatives and
further added value to strengthen them
to become change agents. The process
of materiality assessment adopted
added clarity to them in terms of
prioritizing their efforts to bring in
sustainability into the business not only
for them but also for their stakeholders.
For your information, we have
recently organised Sustainability
Workshop on GRI Standards and
Sustainable Development Goals
(SDGs) and the proceedings summary
of it have been published in Sampada
magazine January 2019 issue for the
benefit of industry members.
Case study: Creating sustainability
champions within the company
Why development of sustainability
champions is important here is the case,
in one of the enterprise the manager of
corporate social responsibility (CSR)
was looking at sustainability with the a
great interest but failed to take on board
support from the other departments in
the organization and certainly that lead

to failure of CSR initiative and
momentum for sustaining the initiative.
The Head of the company was in
impression that there is lack of
motivation on his part and hence that
lead to overburden in taking new
initiatives further.
The process of development of
sustainability report enhances
understanding and brings in clarity that
subsequently results in passion for
sustainably doing work and
systematically strategizing to make the
way.
The process of development of
sustainability report as per GRI
Standards :
- Helps to overcome resistance of
change
- Helps to develop strategies and
- Creates more empowered
employees. Thereby building their
capacities and commitment towards
their responsibilities and
sustainability for their company.
In the process of development of
sustainability report, the process
provides orientation to the cross-
functional team to think 3600 ways for
their functions, performance and goals.
About the Sustainability Desk:
External and internal benchmarking:
The purpose of external and internal
benchmarking is to improve further and
make activities more sustainable. The
benchmarking within organization helps
to assess and address the triple bottom
line impact of the organization.
The internal benchmarking allows to
work on mutually identified indicators
amongst the various departments but
the external benchmarking provides
broader view on three elements of
sustainability namely economical
growth, environmental protection and
socially inclusiveness.
Naturally, no one likes to be lag
behind the competitors or by the
regulations or by the client expectations.
And for that purpose companies
employing good intellect but still
struggling on many fronts. That is were
sustainability is lost in routine business
work. But if Head of the company
decides to work on the development of
sustainability report then it's the process
of developing such report brings value
to the all kinds of efforts of their
employees and the efforts of a business
Head as well.
There are several examples of big
companies where many cross
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functional teams are together build each
others respective capacity and yet
which often involves external experts to
provide orientation and guidance.
At the end of the successful
completion of the process of
development of sustainability report, the
finding would be 'the commitment and
the interest created in the middle
managers and executives makes
change to organizations sustainability
impact.
Conclusion:
Majority of industry members /
companies employ management level
executives for pushing the company
towards greater outcome driven
responsibility. But more often the
management level executive struggles
to overcome the resistance within their
organization. The management level
executive needs to employ a few key
strategies to get others to prioritize
sustainability activities for making
sustainability a reality today and
tomorrow. This requires collective
efforts of everyone externally and
internally in an organization.
----------------------------------------------------
Chetankumar Sangole
Head – Sustainability Desk, MCCIA
chetankumars@mcciapune.com
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Preparing for International Business
1. Origin of Globalisation:
The word Globalisation became more
popular from the year 1994 onwards
when all countries came together and
signed an agreement through GATT
(Global Agreement of Tariffs & Trade).
Under this agreement, all the countries
decided to open its markets for each
other's products and services. This gave
immense opportunities to Indian
manufacturers to grow fast. Our Prime
Minister then was Mr. PV Narsimha Rao
(1991-96). Under his leadership, India
opened up its market for global
competition and Indian companies also
went global to tap international markets.
Many large companies took advantage
of this and grew rapidly in international
markets while SMEs were not geared up
to do so.
2. Background:
India is on a growth path. The average
growth rate is around 7.5% at the
moment and is expected to grow faster
than any other country in the world. The
44 : \o$~«wdmar 2019
whole world is watching India and its
eventual growth which could exceed
over 10% in the coming 2-3 years.
Sectors like industrial products,
automotive, engineering goods, food
products, pharmaceuticals, FMCG and
services like IT, hospitality, healthcare,
education, retailing, e-commerce also
have high growth potentials.
Opportunities in and outside India are
immense and more for the SME sector.
What we need now is to think of growth
in business in and outside India and
accordingly take steps ahead. We are
not talking of domestic market here but
the export market. The SME sector has
been on the runway for a long time and
has now to take off into the arena of
export market.
I have been in business consulting
over last 25 years. I have certainly been
getting calls from many SMEs asking
my help for exports. The first question
they ask me is can you provide us ready
clients? I politely say No and request
Anil Dhaneshwar
them to approach merchant exporters.
They want quick results and immediate
export orders without understanding
how to address opportunities in the
global markets. Had that been so easy
each of you could have been a
successful exporter by now. But it's not
the case. Some of you may get some
one-time business, but will never be
profitable unless you do it on your own.
The offerings are broadly in 2
categories viz. manufacturing and
services. Depending on its strengths,
the SME can identify product: market
combination by conducting a proper
study and then prepare export
marketing strategy sooner or later.
3. Go Global - Grow Global (4G)
Strategy
We always state – saying is easy but
doing is not. I am of the other opinion.
Once you say, it is easy to do. It's the
mindset what we need to change.
Nothing is impossible. Anything and

everything is possible and achievable
with some steps in that direction. What
we need to decide is the destination and
the baggage we wish to carry to the
export market. Once you decide,
naturally the questions will arise on how,
when, what, where, which and why. Let
us try to solve all of them to conquer the
global market. What we need at the
moment is an attitudinal change to start
with and then the road becomes much
easier. Have confidence in yourself and
you can do it. If someone is doing it, then
you have every chance to achieve it too.
Thus, let us be confident and say Yes,
we can do!
4. Change in the mindset:
This is a very important and crucial
stage in the transition. Once you decide,
you start taking actions which lead to
results. For that purpose, the entire
team of the organisation needs to think
of making it global and act accordingly in
tandem with each other. Every
department and each employee in the
organisation will produce international
quality products and services. Nothing
less than the best within the resources
available. Improve productivity, quality,
zero defect, in time and in a most
efficient way. There is market for your
products or services, the question is
whether you can deliver as per
expectations of the foreign buyer. This
message has to percolate down to each
level in the organisation. After all it is
team work. One man cannot do it.
5. M a r k e t i n g & C o r p o r a t e
Communication:
To succeed in the international
market is no way an easy task. You face
competition from across the world. The
one who delivers ontime, as per quality
standards and in the expected price
range will be successful. For this, what
you need to dois create awareness
about your organisation in the
international market and try to reach out
to your probable customers. The
prospective buyer will first see you
through your website. I was surprised to
know SME owners do not have their
own website. Without a proper website,
exports will be a distant dream. Thus,
having an effective website, which is of
international standards, is a must. The
website should have proper disclosure
of information and needs to be made
easy to understand so as to
communicate with the foreign buyers. I
will be dealing with this at length in the
subsequent article.
6. Study of target markets:
It is absolutely essential to study the
target markets for our products and
services. Without this, we may end up
with no results. One should understand
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and prepare SWOT analysis with the
given product: market combination and
prepare a road map for entry into the
international market. One must keep an
eye on the latest trends and techniques
in our product segment and try to adopt
the same to be updated from time to
time. It is essential to study culture,
lifestyle, spending habits, beliefs,
festivals, environment, weather, etc.
much before entering a new market.
Taking into consideration tariff and non-
tariff barriers, one should focus initially
on one or two countries. The export
market does not necessarily mean
Europe and USA. There are many
countries other than these which could
be more profitable and with lesser
competition. We need to keep our eyes
and ears open to catch each and every
moment in the international movement
and gear ourselves up through detailed
study before initiating steps in export
directions.
7. Availing international business
development assistance:
There are many platforms,
agencies, organisations, associations
and Government departments who offer
international business development
assistance. Some such organisations
are ECGC, EXIM Bank, UNIDO, MSME
Department, NSIC, SIDBI, Commercial
Banks, FICCI, CII, MCCIA, ACMA,
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Chemexcil, Export Promotion Council,
commodity boards like Tea Board, Jute
Board, Coffee Board, etc. Such
organisations offer international
business development assistance,
advisory services, incentives,
subsidies, trade delegation, etc.
Similarly, Indian embassies in other
countries also render commercial
assistance and facilitate your entry into
foreign markets. We need to collect,
compile and analyse all such
information and avail whatever
assistance, guidance and facilities
available from each of them. While
many of them are free, some of them
could be on chargeable basis. But it's
worth doing so. This would be of great
help in international business
development.
8. Market entry strategy:
Once you have all the information
and are ready in terms of a good
website, I think it will be a good time to
prepare a market entry strategy. Identify
the target countries: may be top 3, and
focus all your efforts on the same. This
may include your decisions on product
specifications, quality standards, pricing
and other commercial terms for
negotiation. Try to invite foreign buyers
to see your manufacturing setup which
will give him confidence. Try to adopt
and get certifications like ISI, SIHI, HS
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Code, GMP Certification, etc. much
before entering the international market.
Train all the employees adequately to
follow systems and procedures and
quality standards at all levels. At a
subsequent stage, try to identify your
business partner either as a distributor,
JV partner or a direct customer. After
commercial negotiations, sign an MOU
with the foreign partner. While dealing
with the foreign buyer, adequate
precautions need to be taken for
ensuring timely payment by way of
ECGC policy, Bank Guarantee, Letter of
Credit, etc. The documentation needs to
be followed properly to ensure that we
do not face any issues later. This
strategy will be country-specific and
may change for each country or even
buyer.
9. Visits to foreign buyers:
I have been talking to many SME
owners. Uponan enquiry, I found that
most of them have never travelled
abroad, not even on holidays, which is
quite surprising. I would strongly
recommend visiting at least some of the
countries, time and cost permitting, to
get a feel of what is an international
market – be it any country. Visit some
foreign buyers, see the products
available in the market, quality
standards, prices, etc. and judge for
yourself if you can export your products
to that market. No foreign buyer will
come your way so easily unless you
take efforts to reach out to them and
present your credentials effectively.
Please remove one misconception–
foreign buyers want cheap products.
That is not the case. They want the best
product at reasonable price. Now each
buyer will have his own requirement and
budgets and therefore unless you
understand what his requirements are,
we will not be able to deal with them. For
this, a study tour is recommended,
though it will cost you. But in the long
run, I am sure you will be able to recover
the cost of such visits.
Most of the points mentioned put
together properly makes you a
successful entrepreneur in international
business. One needs proper vision and
sustained efforts in this area of
international business development.
Results are guaranteed success. SME
owners need some patience,
perseverance with the right product,
pricing, packaging and performance.
Success is yours!
----------------------------------------------------
Anil Dhaneshwar, Managing Director,
Genesis Management & Market
Research P. Ltd.,
Email : anil@gmmr.in

Enterprise resource planning (ERP)
Implementation in MSME
At some point of time in their growth
path, most of the MSMEs try to
implement ERP. Many of these ERP
implementation projects end up in a
disaster. Of course, if you ask the local
ERP champions – CEO, CTO, GenNext,
etc. – they will give the usual
euphemistic, roundabout answers,
which finally boil down to hard reality -
“we did not get expected results.”
Here are some of the common
reasons of why expected results are not
met :
A) Lack of clarity – Ask yourself a hard
question – What do you want to achieve
by implementing ERP? If possible, call a
hard-nosed businessman friend and
discuss what you want to achieve.
Chances are good that you will find the
reason is something flimsy. Here are
some examples (and the possible
response from your friend to these
reasons) -
-- your GenNext has a different set of
ideas about how to run business.
(Perhaps, he is afraid of talking people
and wants to hide behind the laptop.
Make him go out and face people. If he
really has certain different ideas,
provide seed capital and let him run a
new business. Grafting an ERP on your
existing business just to help him learn
the ropes, is very costly.)
-- “ERP” is the current trend /
buzzword / in-thing / fashionable. (If you
want ERP because “pados wale
Sharmaji ne liya”, then there are better
and easier alternatives – like a
BMW/Audi/Merc)
– Business has grown beyond my
individual control. (Notice carefully –
you are not saying that I want to grow the
business beyond my individual control.
If “business has grown”, then it is a plus
for your marketing skills, but a minus for
your managerial skills – it is time to
invest in your capabilities. But, if you
want to grow the business beyond your
control, then yes, do invest in ERP.)
-- ERP will solve my problems. (No.
Gun does not protect you – gun only
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Milind Damle
helps you fight. ERP will not solve your
problems – ERP will only help you solve
your problems.)
B) After this round of discussion,
hopefully, you will have a clear list of
problems to be solved using ERP. Then
comes the second set of problems – the
ones pertaining to actual
implementation.
1) Lack of Preparation
- Are you clear about what will it take
to implement ERP? Time, Money, Skills,
Base data preparation, Controls to be
brought in, People, Energy, Opportunity
cost?
My most frustrating experience in
ERP implementation was – time wasted
in getting the correct, comprehensive
list of products, along with all their
parameters.
2) Buying the wrong ERP – Can this
ERP help me solve my problems?
If you are clear about your problems
– both today's and tomorrow's problems
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– then you can choose the right ERP.
Typical parameters to be used for
evaluation are –
-- Implementation in similar industry.
Please note that this does not mean that
ERP can be used as it is. It only means
that the chap talking to you will
understand what you are saying.
-- Customisability – No matter how
similar the other business is, your ERP
implementation will still require lots of
customisation. Can your vendor do it
without hurting his and your budget?
-- Long term support – will this guy
be around after 5 years to support the
changes? And has that been built into
his and your costing?
-- Technology – Does the technology
used for ERP match what you intend to
use for next 5 years? For example, in
2019, do not buy something written in
FoxPro or even VB. At the same time,
don't let the “cutting edge technology”
resolve all its teething troubles at your
expense.
– Cost – Remember, the amount you
pay for ERP is only the tip of the iceberg.
Real costs include time and energy of
your team, opportunity costs, cost of
disruptions & mistakes, cost of learning,
cost of changes in hardware, training of
people, additional licenses, etc. And, oh
yes, don't forget the AMC of software.
One common mistake many people
make is -- “My nephew is starting IT
business. He will develop ERP for me,
48 : \o$~«wdmar 2019
with my guidance.” If you want to help
your nephew, send him to your friend.
He will ask all the tough questions and
give a tough ERP order, like the one that
your nephew will face in future. After
that, either your nephew will find a job or
he will actually develop a good solution.
If he develops something really good
and also wants to be in that business,
then be his second customer.
3) Controls to be brought in – If you
want your business to grow beyond your
individual control and still not go in
wrong direction, then you need to bring
in controls.
4) People – On people front, you can
run your company with one of the 2
possible models
-- My people are dumb and I want
ERP to ensure that they do not make
any stupid mistake.
OR
-- I shall train and retain my team and
ERP should assist them by pointing out
inadvertent mistakes.
Depending on your choice, the ERP
needs to be customised.
Also, beware of 2 hurdles from your
team
-- Some people may actually be
taking undue advantage of lack of
controls (to the extent of even fraud) in
your operations. If ERP closes their
private shops, then they will either fight it
tooth and nail or resign and find other
job.
-- Some people will feel threatened
as they feel their importance getting
reduced by ERP. You need to handle
their anxiety. Solution will depend on the
person – his adaptability and
importance.
5) Setting wrong expectations
-- Here you may end up biting more
than what you can chew. In the initial
euphoria, people tend to give a lot of
unrealistic specs which eventually are
never used. That will cause a lot of
heart-burns, delay the project and
increase the cost. Conversely, aiming
too low will lead to waste of money
because you pay for a system which can
give MIS and inventory control and use it
only for printing invoices.
C) Law of "Increasing" Marginal
Returns – In most of the areas of life, the
law of diminishing marginal returns
applies. In IT systems, on the other
hand, you get “increasing” returns. For
example, to implement ERP up to 60%
potential, you will spend 85% of budget
(in terms of cost, energy and time). Most
companies declare this as success and
rest on their own laurels. Some spend
another 5% and reach 70% potential.
Put in another 6-7% and you hit 85%
potential. And if you can add last 3-4%
and you will jump from 85% to 100%
potential.
So, reserve your energies for that
last lap.
----------------------------------------------------
Milind Damle, Director PRA - VI Info
Solutions
Email : mpdamle@pra-vi.com

Credit Cards Frauds – Are YOU Vulnerable?
7th Jan 2019 - 8.30 am:
Nishika was already getting late for
office. As usual the traffic near Wakad
bridge was jam and she already had
messages from Pranay, her boss to
reach early to handle a client escalation.
Just to add to her agony her maid and
driver both had bunked off for their
domestic urgencies. She had to
manage household chores, drop her
daughter to her parents' house and then
drive to office too. The fuel indicator was
showing red and there was no option but
to get it filled.
All the while she was driving her
mobile kept ringing with message tones.
She ignored them assuming it's her
office trying to reach her.
11 am:
Nishika filled a cup of coffee post her
long escalation call and came back to
cabin. She fetchedher phone to call her
Aai to enquire about Piu her daughter.
She was stunned.
There were 9 messages from her
bank indicating multiple transactions
from her credit card. The messages she
ignored while driving were the
transaction messages between 850 am
to 1020 am,amounting to transactions
worth 2 lacs 40 thousand.
Nishika immediately called her
personal banker Vaibhavi who helped
her block the card. While reveiweing the
transaction details Nishika realised all
transactions were done outside India
from multiplee-commerce site.
She had no inkling how could it be
possible?
What had gone wrong??
She called her cyber security expert
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Prashant Koranne
friend Tapan for assistance, who asked
her questions linked to usage of her card
in the last 24 hours or so. The only use
was at the petrol pump.Her cyber expert
friend immediately figured out what
could have gone wrong.
Nishika was a victim of card
skimming or cloning.
While she was using the card for
payment at the petrol pump, she didn't
notice that that the POS machine was
somewhat unusual. The key pad was a
little thicker than normal and she could
not recognize it. She was getting
anxious as she was getting late and
wanted to leave immediately. Secondly,
since she was in a hurry,she didn't hide
her fingers while typing the PIN which
aided the attendant notice her PIN.
This allowed the hacker to see her
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card PIN and the card details got stored
on the skimming device. Later this
information was used by the hacker to
get the new card with her details and for
doing fraudulent transactions.
How card skimming occurs?
Of all the card frauds those get
registered, card skimming is of very
common occurrence. This purely
happens due to user negligence.
Skimming can happen at ATMs and or at
any merchants such as petrol pumps
when a card-reading device is installed
either outside or inside card-swiping
terminal - POS. This allows a hacker to
collect user's card information, including
the PIN.
Mostly, credit card information is
stolen in India and then used outside
India. Since, at most of the places
outside India there is no mandate for
Two / Multi Factor Authentication (e.g.
an OTP after PIN), it makes easy for
hackers to withdraw money or shop
online.
How to protect yourself?
A little vigilant eye and watchful
approach is useful in avoiding such
cases. Some useful tips :
50 : \o$~«wdmar 2019
● Most of us normally have a tendency
to handover the cards to the waiters
at hotels, attendants at petrol pumps
and then they fetch the POS
machine. Ideally, we should ask
them to fetch the machine first and
then handover the card. Even a few
minutes of delay can create havoc.
Especially at the pubs &bars where
the nervous system is a little slow in
registering the time lag!
● Smart phones are very common
these days. It won't take more than a
few seconds for a waiter or an
attendant to take a snap – front and
back of your card. This can later be
used for fraudulent transactions as
he will get the CVV number required
for such transactions. So be alert!
● We all are very prompt in responding
to messages on social media like
WhatsApp etc. and weoverlook the
normal messages (SMSs). Check
every message / email coming from
the bank as early as you can!This
will certainly help in detecting and
reporting the frauds immediately.
● Avoid using ATMs which are located
in isolation as the possibility of
skimming is more at such ATMs.
● Check the placement of the cameras
in ATMs, retail stores, petrol pumps.
Are they capturing the card details?
● Develop the habit of covering your
hand while you punch in the PIN.
● Keep a watch on credit and debit
card transactions regularly to make
sure no fraudulent activity has
occurred.
I am sure that these small security
measures would go a long way in
protecting all of us from such common
frauds.
Happy shopping!
--------------------------------------------------------
Prashant Koranne
CEO of Second Quadrant Consulting
Solutions Pvt. Ltd.
Email : koranne.prashant@gmail.com

Wellness and Lifestyle Management
In true conformity to the age-old
aphorisms: Prevention is better than
cure; A stitch in time save nine; Better
late than sorry, an ounce of prevention is
worth a pound of cure etc., Preventive
h e a l t h f o c u s i n g o n H E A LT H
PROMOTION assumes special
significance in today's hectic and
demanding lifestyle.
Today's hectic lifestyle imposes
tremendous constraints on one's health.
One has time and occasion to visit a
doctor, but only in times of illness. Not
uncommonly, most of the illnesses
could have been prevented, their
diagnosis made earlier or complications
averted and a more favorable outcome
ensured, had the problem been
detected earlier.
Personal health behavior is
significant, as individuals are
encouraged to adopt and maintain
positive lifestyles through a variety of
awareness, educational and
motivational strategies. Health
promotion is the process of enabling
people to increase control over and to
improve their health through the
overlapping spheres of health
education, nutritional interventions,
lifestyle and behavioral changes,
prevention, and health protection. It
helps improve overall health
knowledge, attitudes, skills, and
behavior. Health Promotion thus
enhances the quality of life for all
people. With its focus on preventive
health, health promotion is a cost-
effective way to reduce economic costs
of illnesses by way of reducing sickness
absenteeism, disability-adjusted life
years (DALY) etc.
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Dr. Rajiv Yeravdekar
The success of organizations
inherently depends on the health and
wellbeing of their employees. A
physically healthy and mentally sound
workforce is more productive, efficient,
confident and motivated to drive the
organization forward with much less
cost of healthcare on the organization.
Interestingly, in India corporates are
increasingly aware of and are carefully
implementing a variety of activities that
underpin the importance of health and
wellbeing for their employees.
Nutrition: Optimum nutrition is
integral to good physical and mental
health. The role of nutrition extends far
beyond nourishing the body to
nourishing the brain. Malnutrition- both
over and under-nutrition among the
employees could reduce their work
efficiency and economic outputs.
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Additionally, with limited time available
for regular physical activities,
individuals are more susceptible to
chronic lifestyle related (designer)
diseases such as obesity, diabetes
mellitus, hypertension, cardiovascular
diseases and certain types of cancers.
The rising proportion of people with
the diseases mentioned above
underscores the absolute need for
improving nutrition and health
awareness among the workforce
through focused, interactive, industry-
tailored and holistic approach.
Implementation of specific nutrition
programs in conjunction with the health,
recreational and wellness activities
could valuably contribute to the
organizations.
Varied activities -both at the
individual and group levels- to create
health and fitness concept in the minds
of the employees can be implemented.
The potential initiatives include:
1. Nutritional assessment of individual
employees and identifying the risk
for various diseases
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2. Individual/ group counselling for
special conditions such as obesity,
hypertension, diabetes mellitus,
gastro-esophageal reflex diseases,
dyslipidemias, weight management,
and more based on the needs.
Topics can be tailored to suit
requirements, timeframes and the
employees.
3. A s s e s s m e n t o f C a t e r i n g
Establishments: (canteen/
cafeterias / Mess): Corporate
cafeterias and canteens either are
run by the corporates or are
outsourced to a vendor. Since the
food is prepared and cooked in bulk,
extra caution is required to keep the
food safe from contamination and
adopt healthy cooking practices.
Our Public Health experts conduct
onsite inspection based on source of
food, storage including holding
temperature, cooking methodology,
food service system of the
organizations, the weekly or monthly
menu patterns, food preparation etc.
The service practices are evaluated,
and healthy eating guidelines/
practices are suggested. It also
extends to implementation of
policies related to water testing &
waste disposal.
4. Food preparation demonstrations
that could help the employees to eat
healthy at different workplaces and
to manage the existing diseases
through modulation of suitable diets
that could be beneficial.
5. Training for the implementation/
evaluation of food quality and
hygiene practices for the food
handlers, cafeteria managers,
supervisors to ensure food safety
and security. Timely conduct of
health check-up of cooks & food
handlers.
Mental Health: An interesting
development relevant to the current
times is the redressal of issues
pertaining to emotional well-being.
Developing Emotional Intelligence is
the need of the hour. In today's age and
time, although we have progressed in
many ways, we also are challenged by

paradigm shift in family dynamics,
moving from collectivism to
individualism. Although technological
advances have led to globalization and
faster transfer of information, face-to-
face human interactions have been on a
decline. We spend more time on 'face
time' rather than face to face!
This fast-paced highly competitive
world has given rise to immense
pressure in an individual's life creating
unhealthy patterns of behavior, thereby
decreased emotional resilience. We
human beings are curious, resourceful
and passionate about exploring the
world around us and getting together to
solve the problems we come across.
Why have we not given the same
importance to explore the world inside
us?
Emotional Intelligence is the
capacity to be aware of, control and
express one's emotions and to handle
interpersonal relationships judiciously
a n d e m p a t h e t i c a l l y. E m o t i o n a l
intelligence is the key to both personal
and professional success.
According to the World Economic
Forum, emotional intelligence will be
one of the top 10 job skills by 2020. An
individual with a developed EQ is likely
to handle pressure better, is not easily
flustered, and is more aware of their
internal thermometer. Developing EQ
leads to better coping mechanisms and
healthy systems.
About Symbiosis Centre of Health
Care
Symbiosis Centre of Health Care
(SCHC) provides a holistic approach to
address the healthcare needs of your
organization by way of conducting
health promotion sessions followed by
wellness checkup at your very own
premises. The wellness checkup helps
detect latent (not manifested / hidden)
disorders. An early diagnosis prevents
or retards the progression of the medical
problem, reduces dependence on
medications by giving time to adopt life
style modifications and ultimately help
stall complications. It also conducts
awareness sessions on physical health
and emotional wellbeing.
Awareness sessions on Health
Promotion include :
1. Basics of Good Nutrition: Healthy
Eating for Healthy Living
2. Weight management
3. Stress Management through Yoga
4. Love your heart: Cardiac Care
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5. Emotional Wellbeing
6. Prevention and Management of
Diabetes
7. Skin Care
8. C a u t i o n , c o n c e p t i o n , a n d
contraception (CCC)
9. Computer Ergonomics : preventing
repetitive stress injuries
10. L i f e s t y l e D i s o r d e r s a n d
Management
Besides the awareness sessions, it
conducts wellness checkups, Happy
Healthy workplace initiatives. The
Symbiosis Centre for Emotional
Wellbeing (SCEW) envisions cultivating
emotional resilience and wellness
amongst individuals through workshops
by a team of young, dynamic passionate
and trained mental health professionals
beyond doctors alone. The whole effort
is to ensure wellness with a focus on
prevention and promotive rather than
curative care.
----------------------------------------------------------
Dr. Rajiv Yeravdekar, M.D., Ph.D.
Dean, Faculty of Health & Biological
Sciences, Symbiosis International (Deemed
University)
E mail : deanfohbs@siu.edu.in
: \o$~«wdmar 2019 53
 www.facebook.com/PuneMCCIA
Recognizing the Importance of
the Role of the Employer Under the
Sexual Harassment Law in India
Divya Chavan Jachak
For several years, sexual
harassment at workplace has been an
issue faced by women. Unfortunately,
this issue continued to remain
unaddressed until recent times. With the
enactment of the Sexual Harassment of
Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013, it
has now become mandatory for
employers to ensure that a safe working
environment is provided to women, free
from the threat of sexual harassment,
and further, for them to treat instances of
sexual harassment as a grave
misconduct. Despite the enactment of
this protective legislation, employers
are unable to implement its provisions
due to certain mental blocks that exist
while dealing with theinstances of
sexual harassment at workplace.
54 : \o$~«wdmar 2019
The Existing Mental Blocks
According to Ravichandar (2010),
there are five mental blocks or 'Five D's'
that chief executive officers and
management have while implementing
a robust anti-sexual harassment policy,
being denial, dismissal, double up,
delegation, and danger.
Denial: Many organizations have a
sense of denial by believing that such
instances of sexual harassment do not
occur or exist in their organisations.
Further, they feel that their open
environment does not bar any employee
from raising their concerns.
Dismissal: Organizations and
companies often do not treat sexual
harassment as a pertinent issue, and
often dismiss them by stating that there
are much more important issues to deal
with.
Double-up: Most organizations
already have a generic code of conduct
and therefore do not find the need or
necessity to have a separate policy to
address this issue.
Delegation: Many organisations
and companies do not feel the need to
have a separate committee to handle
such complaints and feel that their HR
Department is well equipped to
efficiently handle such issues, as they
consider it to be just another employee
concern.
Danger: Most organizations believe

that if employees are made aware about
such issues of sexual harassment, it
would unnecessarily trigger such issues
and would be misused.
However, it is important that
employers free themselves from such
mental blocks, not only because they
have a moral responsibility to create a
safe environment for women in the
workforce and treat sexual harassment
as a violation of human rights, but also
because it is a mandatory compliance
which has to be adhered under the law.
We have an effective welfare legislation
for protection and prevention of sexual
harassment at the workplace, but
unless and until employers do not
implement the provisions of this welfare
legislation, there will be no positive
change.
The Need to tackle such issues
In a survey conducted by the Indian
National Bar Association in 2016, in
various sectors, being IT, media,
education, legal, medical, agriculture
and others, out of the 6047 participants
(both male and female), 38% stated that
they faced sexual harassment at
workplace, and out of these, 69% did not
complain about the same. Thus, it is
observed that the majority that faced
sexual harassment did not report such
instances. On 27/07/2018, when the
question regarding sexual harassment
of women at workplace was posed in the
Lok Sabha, it was stated in reply by the
Minister of State in the Ministry Of
Women and Child Development, that
533 cases of sexual harassment were
reported across the country till July 2018
and in all 2,535 cases were registered
over the four years from 2014-2018,
ending July 27, 2018.
Inspite of the abovementioned data,
a number of cases go unreported due to
several causes including the employer's
apathy to the issue. But employers fail to
recognise that by remaining apathetic
they are breeding a toxic working
environment which would result in
losing a productive workforce and losing
out on their talent pool.
Mandatory Compliance:
A good organisation is one that not
only cares about achieving their mission
and vision statement, but is one that
concerns itself with the promotion of
culture, values and employee well-
being. Ensuring a safe and harmonious
workplace is the responsibility of every
employer and several studies have
shown that a company that receives
admiration as an employer, often enjoys
great investor and share-holder
confidence. Hence, any compliance,
particularly in relation to employee well-
being, needs to be given utmost
importance in organisational priorities.
Furthermore, non-compliance with
welfare laws and regulations placed for
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protection and care for employees,
stands to reflect badly on the overall
brand value of the employer. Therefore,
an employer ought to ensure
compliance with the provisions of the
Sexual Harassment of Women at
Workplace (Prevention, Prohibition and
Redressal) Act, and prioritise it in its
organisational goals.
This law in relation to prevention and
protection from sexual harassment,
aims to protect all working women from
sexual harassment, which may take
place in the course of their work. The law
casts a mandatory duty on the employer
to provide a safe working environment
to women, to protect them against
sexual harassment and to prevent
sexual harassment at their workplace.
The law also provides for an in-house
redressal mechanism to hear
complaints in relation to sexual
harassment at the workplace. By virtue
of this law, any workplace, be it an
organisation, company or institution,
with more than 10 employees, has to
constitute such an inhouse redressal
mechanism known as an “Internal
Complaints Committee”- to deal with
issues of sexual harassment within the
said organization, company, or
institution, in order to take action against
these issues. Pursuant to a notification
dated 31st July, 2018, passed by the
M i n i s t r y o f C o r p o r a t e A ff a i r s ,
Companies are required to make a
: \o$~«wdmar 2019 55
 www.facebook.com/PuneMCCIA
statement in their Directors Report that it
has complied with provisions in relation
to the constitution of an Internal
Complaints Committee under the
Sexual Harassment of Women at
Workplace (Prevention, Prohibition and
Redressal) Act, 2013.
The law also places a responsibility
on the government to establish a Local
Complaints Committee at every district
level, in order to address complaints
from organisations with less than 10
employees, or in cases where the
complaint is against the employer
himself.
There is no sector which can turn a
blind eye to the issues of sexual
harassment. A “workplace” under the
Act is an expansive term aimed to
include both private and public limited
companies, partnership firms, trusts,
manufacturing units, factories,
industries, educational institutes like
schools and colleges, hospitality/hotel
businesses and even hospitals. Every
sector is now obligated to have zero
tolerance towards sexual harassment,
as there can be serious legal
repercussions resulting from non-
compliance. The penalties for non-
compliance are severe, which include a
fine of Rs.50,000/-. The penalty for
continuation of non-compliance can
also lead to cancellation of licence or
withdrawal or non-renewal of approval
or cancellation of registration of
business or activity.
Even the defence Sector- the Army,
Navy and Air Force, which are governed
56 : \o$~«wdmar 2019
by the Army Act 1950, the Navy Act 1957
and the Air force Act 1950 respectively,
deal with such issues very strictly and
efficiently. In a Written Statement to
Rajya Sabha on 21st March 2017, the
Minister for Defence, stated that
between 2015-2017, women from the
defence forces complained of sexual
harassment and discrimination-out of
these, six were from the Army, three
were from the Navy and two were from
the Air force. Sexual harassment is
treated as a serious breach of discipline
and strict action is taken for the
'unbecoming conduct', 'violation of good
order and discipline' by the Court
Martial. If a person, subject to the Army,
Navy or Airforce Act, commits an offence
of rape against a person not subject to
military, naval or air force law, then such
an offence will be triable by the civilian
law. Therefore, the legislature has
ensured that such offences do not go
unpunished.
As was pointed out before, the
legislation and the policy is in place, but
certain employers, due to certain mind
blocks do not to implement these rules.
It is imperative that an employer
embraces effective implementation of
these provisions and adopts different
strategies in order to prevent sexual
harassment at their workplace and
make their workplace free from gender
discrimination. The first step towards
this, is that employers recognise the
need for it and marrying it with the
provisions laid down for mandatory
compliance. The preventive steps and
strategies that an employer can take, to
work towards a work environment free
from sexual harassment, is an aspect
that is going to be dealt with in the next
article.
REFERENCES:
The Sexual Harassment of Women
at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 (India)
Ravichandar Hema, Sexual
Harassment: what's that? Oct 2010,
https://www.livemint.com
Sexual Harassment of Women-
Refelections on the Private Sector,
AnaghaSarpotdar, EPW Vol XLVIII
No.40, October 5,2013
Report Garima, Indian National Bar
Association, First Edn.2017
Lok Sabha, Unstarred Question
No.1763, Ministry Of Women And Child
Development, Government Of India,
27.07.2018
The Army Act 1950 (India)
The Navy Act 1957 (India)
The Air force Act 1950 (India)
Rajya Sabha, Unstarred Question
No.2116, Department Of Defence,
Ministry Of Defence,Government Of
India, 21st March, 2017
----------------------------------------------------
Divya Chavan Jachak
Advocate, Co-Founder Gender Sense.
Email : divyahchavan@gmail.com

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We request you to send your
feedback on this Issue and
suggestions for forthcoming issues
to :
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