India is a market with huge potentials - Joseph W Marotta  

Joseph W Marotta, General Manager, World Operations, Lords, was one of the thousands distinguished delegates, who attended the three day long India Rubber Expo in Mumbai. Mumbaibest took this opportunity to speak to the representative from USA and jotted his views about the changes that are taking place in the Indian Economy, and India's role in the Global Economy.

Lords, one of the oldest rubber company, was established 82 years ago. Where you see it today, and its role in Globalization?

The Company grew as explorations into rubber-metal assemblies led to subsequent research into elastomers and the chemistry of bonding. These pursuits pioneered innovations in adhesives, coatings, energy control motion accommodation, noise control, materials and more. Today world-wide, Lord Corporation employs over 2,100 people and it remains privately held. It is headquarters in Cary, N C near Research Triangle Park, on the Lord campus where the Thomas Lord Research and Development Center and a Process Development Center are also located.

To keep up our pace with the speed of globalization, we also believe in expanding our activities. Today Lord has manufacturing in 4 states and in 5 countries. Our major business units are Mechanical Products Division, Chemical Products Division and Materials Division. Global customers recognise our preeminent position in materials, surface science, electromechanical dynamic systems, and chemical syntheses and polymerisation. We apply these core technologies to the development of an array of custom vibration, shock, noise and motion control products, a variety of speciality adhesives and coatings and magnetorheological fluids and their integration into controllable devices. We've earned this reputation because we're technology driven.

You also have a manufacturing unit in India. What is the reason behind establishing a unit in Maharashtra ?

The world is witnessing the emergence of India as a manufacturing country. Technically, Indians are well equipped. So in the hope of opening up a bigger market for our products, we made a joint venture in India. One thing we should understand is that, produced goods can be marketed only if the quality can stand all the test. In the beginning it is easy to set up a unit with less investment in a country like India, but in the long run it turns out to be the same as we can never compromise on the quality which has to be world class. India has developed in almost all sectors, but quality is still not upto the mark, to meet the challenges of the marketplace.

Products that are manufactured in India are they exported to other countries ?

Presently, export of rubber manufactured in the Indian Unit is restricted to neighbouring countries, Sri Lanka and Pakistan. In coming years, depending on the demand of rubber and rubber related products we will start exporting to other countries, if necessary. India has such a big consumer base, that, major part of the production is consumed internally. Today the country has emerged as one of the prime consumers and producer of rubber.

Today, major part of the world market is flooded with Chinese goods. Consumer are getting desirable products at throw away prices. What measures are taken up by Lords in order to save itself from the cheap dumping ?

Today China is in a position to provide such low rate products to the world because of its low tax rates and open industrial policies. Keeping in mind the cost of manufacturing product in China, which is very low, we have also started our own manufacturing unit at Shanghai.

Where do you think India today stands in the race of Globalization ?

India is emerging as one of the front-runner in every sector of development. It is one of the fast growing economies. It is a virgin market for any investor. The domestic consumption of the country is going to increase tremendously as the economy grows, purchasing power of the people will increase accordingly. All foreign companies are waiting for an opportunity to invest in India, and in coming years will see the increase in that rate of entries.

How do you analyse the small timers in the Indian Rubber Industry ?

It is amazing to notice that in a country like India, one of the major industry, rubber industry, still runs in bits and pieces. In developed country we have less companies with more demands, and here its the other way around. It will take some time to consolidate all such small timers in India, and in the coming years we are looking forward for mergers and acquisitions.

By: Sharmistha Chakraborty

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