Interview with Mr. Jagmohan Singh from Kalyan
Kalyan Industries has launched many machines at its IndiaWood 2014 stall in hall 2LL A106), and we are pleased to have chance to interview with Mr. Jagmohan. Following are the details:
1. Can you briefly introduce your company?
A: Kalyan was established in 1952. It is a family company, established by my grandfather. We manufacture woodworking machinery and In 2004, we started toimport woodworking machinery from other countries such as Taiwan, Italy, China, etc… We began with manufacturing plywood making machines and we are, in fact, the first company to do so. Later we moved on to veneer peelers and other hydraulic machinery, and we have about 70% of the market here. Our track record shows growth on an annual basis.
2. How is the economic situation in India recently?
A: Beginning in 2013, the economy in India has been rather slow. Nonetheless, we keep striving and working hard on our woodworking machinery business. We were lucky to have a reasonable amount of business compared to other dealers.
3. Can you briefly analyze the woodworking Industry market in India during recent years?
A: India is a big country, but the woodworking market is not as big as I would like. There is a segment of the industry that can afford European machines and you can see here that their stalls are very big. But that segment is very small. Since the economy is not very good many people want to manufacture by hand instead of investing in machinery. Surely there is a lot of potential, but growth will not be dramatic in the next few years. In 2014 and 2015, I expect growth of at least 20 percent.
4. How many Taiwan brands of machinery you sell?
What is your opinion of Taiwanese woodworking machinery?
A: Now we import some Taiwan machinery from companies like Kuang Yung, Goodtek, Kuo Rong, Hsu Pen, Juan Nan, Huan Hung and Thai Feng. Taiwan woodworking machinery is the best for us. According to Taiwan manufacturers, the machines we buy have a good market in India. For instance the multiple rip saw from Kuang Yung is very strong, and even though a bit expensive, it still has good market.
5. What are the advantages and disadvantages of Taiwanese Woodworking machinery?
A: For solid wood processing the Taiwanese are the best. They offer excellent reliability and I see a huge potential market for them in India. The advantage of Taiwan woodworking machinery is that it offers great quality, and the disadvantage of it is the price. Now they want to increase prices because the costs of raw materials is going up, but at the same time China is rising up and a lot of Chinese products are entering the market. There is a price war and we are managing, but sometimes we have to lower our margins. This trend leaves us very little profit because we want to sell Taiwanese , so that's the problem we're facing.
6. Which kind of machinery or tools are more popular in India market?
A: Rip saws, multiple rip saws, double surface planers, rectangular tenoners, oscillation mortisers, clamp carriers … These items are most popular. I don't buy edge banding machines from Taiwan because the Chinese ones do the job almost equally as well for cheaper.
7. Do you have any advice for Taiwan manufacturers who are interested in the Indian market?
A: India is a big country with millions of people. The market here now is difficult, so they should have good dealers if they want to sell their products. It is quite difficult for them to sell directly to the consumer or end users.
8. What is your impression of INDIAWOOD 2014 ?
A: Today is the third day of the show. On the first day was fairly slow, the second day was good, and we are expecting the show to prove better than than last time. Although the market is not very supportive, this time a lot more machines are here and more people are looking around. Maybe they are not deciding quickly, maybe they need some time, but since they have seen the machines, they quite possibly will buy in six or twelve months. It doesn't matter when they buy, but after having seen the machines, they eventually will.
9. Have you got any other advice?
A: There are many manufacturers and I don't know what they can do to lower their prices, but I suggest that they find a way. They have to be more competitive than China in the medium sector of the industry while meeting European levels of technology to expand their share of the top sector.The top sector pays a lot of money for European machines, and if the Taiwanese can provide the same technology for cheaper, it would definitely expand their presence in that arena.
We would like to thank Mr. Jagmohan Singh of Kalyan for taking the time to share his comments and insight.
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