The president of Japan's leading industrial manufacturing firm believes that the Indian market has the greatest growth potential in the world.
As a company that possesses path-breaking technology as one of its many offerings, TMEIC has realised steady growth thanks to a focused business approach and an intensive global developmental strategy.
Mint spoke to TMEIC President Masahiko Yamawaki on the company’s future expansion plans and aims for its Indian counterpart.
Q: Could you tell us about your company and the scope of its business?
Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC) was founded in 2003. The company was established by integrating Toshiba Corporation and Mitsubishi Electric Corporation’s industrial systems, power electronics divisions and the rotating machinery division, which was already undergoing development at that time as a joint venture between the two companies. TMEIC has inherited over 100 years of technology and experience from its parent companies and has sought to add to this with the provision of world-leading systems and products.
TMEIC handles the engineering of various electrical machinery and facilities, as well as produces and sells monitoring control systems, motors and drive systems for the manufacturing industry. In addition, TMEIC has been developing renewable energy-related systems that include PV inverters for solar power generation systems and energy storage systems.
Q: What is the basic policy of your company and how do you promote your business?
TMEIC’s basic policy is to build sustainable partnerships that enable us to grow and develop together with our customers. We absorb the diverse and ever-changing needs of customers, provide solutions that meet these expectations and contribute to the advancement of industry and social infrastructure.
Q: Could you provide a brief explanation of your current management strategy? What are the key business areas your company currently wants to promote?
The management strategy that we are currently focusing on revolves around three points: exceptional product appeal, global expansion and service business.
In terms of exceptional product appeal, we manufacture world-class PV inverters for utility-scale PV systems. For the modular-type inverter released in May 2019 we have received orders amounting to 2GW. In industrial motors, our products are developed and stand out for their high-level Japanese approach to quality, cost and delivery. We provide a variety of systems that apply Internet of Things (IOT)-ready products to effectively advance factory operations.
In terms of global expansion, TMEIC develops business in wide-ranging fields. In Japan, we command virtually the top share in all of our businesses, with a share of more than 50% in multiple areas. From the perspectives of market size, room for growth and global expansion, we are focusing on the United States, China and India.
Also, most customers tend to continue using TMEIC’s systems and products after they try them once. By making further improvements on the service front, we seek to expand TMEIC users around the world. Consolidated net sales currently total ¥230 billion, including ¥100 billion from our global business, as a result of the aforementioned strategies. In 2020, we aim to increase this figure to ¥300 billion, with ¥150 billion coming from our global business.
Q: Could you tell us the specific areas in which your company has been or is currently focusing on in terms of its global strategy?
Up until 2014, our production sites were mainly concentrated in Japan. Since then, in China, we have opened a succession of plants, first in Guangzhou and followed by Shanghai in 2013 and Yancheng in 2015. We commenced sales in the United States in 2015 and began operating a new plant there in 2017. Here in India, in 2014, we acquired the Indian subsidiary of AEG, a well-established power electronics company based out of Germany, and turned it into a manufacturing site. In 2016, we completed and started production at a motor factory, and in 2017, we completed and started production at a power electronics factory on the same site.
The establishment of these global sites has resulted in a manufacturing structure comprising four bases in Japan and five overseas that can supply products to the global market. At the same time, we are striving to expand and strengthen each sales and engineering site.
Q: Could you tell us about your main business strategy and prospects going forward?
Going forward, we aim to contribute to user benefits by realising further sophistication of plant operations through a focus on digitalization. We are looking to expand business for high-voltage drives used in fans and pumps and for high-efficiency motors that can be applied to infrastructure facilities such as oil and gas plants, manufacturing plants and power stations by taking advantage of the need for energy conservation over the medium term.
In addition to the utility-scale PV systems we have focused on up until now, we are aiming to expand business for energy storage systems that ensure their effective utilisation. Both areas provide optimal solutions on the back of our PV inverters and system engineering boasting world-class efficiency.
Q:Do you have any message for our readers? Also, how do you see your company contributing to the local community and building a stronger and more skilled workforce?
The Indian market has the greatest growth potential in the world and our Indian manufacturing site will not only serve the Indian population, but also serve as a global equipment supply base.
At the opening ceremonies of our motor factory and power electronics factory in India, the Ambassador of Japan to India and the Minister from the State of Karnataka commented on our contribution to the local community in India. TMEIC’s company policy is to contribute to society through business. We intend to contribute to the advancement of the Indian economy and society by resolving the various challenges facing users here through our products and systems.
Aiming high has always been TMEIC’s key agenda. When it comes to the Indian market, it seems like their success story has already begun.