Chandigarh-based SME innovates for success

While the Central government is exhorting small entrepreneurs to match world-class standards and carve a niche for themselves through 'made in India' products, Chandigarh-based small entrepreneur Hari Om Verma has created a benchmark by providing cutting-edge technology to global multinationals.

Verma, 63, a mechanical engineer, runs Ramani Precision Machines Private Ltd, a small company that he has built up over a period of 23 years. He supplies precision machines designed by himself to major multinational and domestic automobile players, with some exposure in export markets.

While the economic slowdown put brakes on the growth of many small enterprises, it opened new vistas for Verma. "To beat the sluggish demand, the big players scouted for innovative cost-cutting technologies and approached our company to develop low-cost equipment for them," said Verma.

For a start-up entrepreneur, the key to success lies in a penchant for innovation, said Verma, who had earlier changed many jobs in his quest for opportunities to incorporate his designs into machines.

He founded his company in 1991 at Panchkula in Haryana with an investment of Rs 10 lakh. "I never borrowed from banks or any other source and started my journey without any external support," he said.

It was his out-of-the box thinking that persuaded General Motors in 1998 to replace four precision machines with one that slashed costs for the automobile giant.

This innovation was recognised by the Union ministry of micro, small and medium enterprises, which conferred the 'Outstanding Small Scale Entrepreneur Award' on Verma in August 2000.

His company has been supplying precision machines to major automobile vendors (original equipment manufacturers) such as Subros, Visteon, Valeo, Advics, Munjal-Kiriu, Sundaram Fasteners, Minaplast and Calsonic-Kansei in the Indian market.

Verma's latest export buyer is automotive components manufacturer Denso Corporation (Japan). He has also been a supplier to Earlston Technologies (UK), lighting manufacturer Osram (Germany), metal industry contract manufacturer Memar Oy (Finland) and Rudolf Graver (Switzerland).

Eight years ago Verma's sons Rahul and Manik - both qualified engineers who share his interest in designing new machines - joined him. "We are a team for the past eight years but my working hours are as long as they were in 1991. The scope of value addition is so immense in this field that even after working 14 hours a day, I feel I could do better if given more time," added Verma.

Verma set up a second plant at Derabassi in Punjab, in 2007. "My endeavour not only provides bread and butter to 90-odd families but also saves substantial foreign exchange, as the manufacturing sector had to import state-of-the-art technology after the liberalisation of the Indian economy," he said.

Verma has not filed patent applications for his intellectual property; his days are so long that he does not have time for it. Moreover, the machines he develops are customised, so he sees no threat from competitors.

Last month, Verma secured an order for 18 machines from Toyota Tususho India Limited (TTIL), an automotive OEM for Toyota Motors located at the Industrial Model Township in Manesar, Haryana. The deadline is now keeping him busy. "There has never been a dearth of work but designing machines needs meticulous personal attention, so we accept orders of a volume that we can deliver with perfection," he said.