Power Bank Manufacturers Need Advanced Facilities, Localised Materials To Thrive: Ambrane MD Rajpal

The recent reduction in customs duty on chargers from 20% to 15% is expected to benefit the industry by lowering production costs, says Ashok Rajpal

By :  Kumud Das
Update:2024-09-12 11:49 IST

Ambrane, a leading manufacturer in India’s power bank market, is at the forefront of innovation and expansion under the ‘Made in India’ initiative. In an exclusive interview with Bizz Buzz, Ashok Rajpal, Managing Director of Ambrane, discusses the key challenges facing the industry, including the need for advanced manufacturing facilities and the heavy reliance on imported components. Rajpal emphasises the company's commitment to localization, stating, “We have localized over 70 per cent of our raw materials and aim for 100 per cent soon.”

The company’s recent upgrades at its Kundli plant and focus on R&D showcase its drive for innovation in a competitive market. On the reduction of customs duties, Rajpal highlights that “lower costs will boost exports and strengthen India's global position.”

What obstacles must power bank producers in India overcome in order to increase output and innovation under the "Made in India" initiative?

Power bank manufacturers in India face several key challenges in scaling up output and driving innovation under the ‘Made in India’ initiative. Crucial obstacles include the need for advanced manufacturing facilities that align with Industry 4.0 standards to enhance efficiency. Heavy reliance on imported components inflates costs and makes the supply chain vulnerable to disruptions. Localisation of materials is essential but demands significant investment and time to develop. Moreover, a shortage of skilled labour and technical expertise in manufacturing and R&D impedes growth and innovation. Navigating complex regulations, such as BIS certification, also impacts product quality.

Ambrane is tackling these challenges by upgrading its Kundli plant with state-of-the-art machinery, localising over 70 per cent of raw materials, and employing skilled workers, with a goal of achieving 100 per cent localization soon. Addressing these issues is vital for thriving under the "Made in India" initiative and ensuring sustained industry growth.

What are your opinions on the reduction in custom duty on chargers from 20 per cent to 15 per cent that occurred recently?

The recent reduction in customs duty on chargers from 20 per cent to 15 per cent is a highly positive development for the industry. This reduction effectively lowers production costs, which can make chargers more affordable for consumers. The potential increase in domestic adoption is significant, as reduced costs often translate to more accessible products for a broader audience.

Moreover, this change enhances the global competitiveness of Indian manufacturers by reducing production expenses. Lower costs can lead to higher profit margins and enable manufacturers to price their products more competitively on the international stage. This, in turn, could boost exports and strengthen India's position as a key player in the global electronics market. The duty reduction also encourages growth in the consumer electronics and mobile accessories sectors. It boosts investments in these industries, fostering innovation and supporting the "Make in India" initiative. By improving India's attractiveness as a manufacturing hub, this policy change aligns with broader goals of economic development and self-reliance. Overall, the reduction in customs duty supports a more dynamic and competitive market environment, benefiting both consumers and manufacturers while reinforcing India's role in global electronics manufacturing.

What are the evolving trends in the power banks and electronic manufacturing industry?

In the manufacturing industry, one notable trend is the increasing integration of robotics and advanced machinery in production processes. This advancement enhances efficiency, automation, and precision in manufacturing, leading to higher-quality products and streamlined operations.

Another significant trend is the adoption of artificial intelligence (AI) and machine learning (ML) technologies. These innovations are being used to optimize operations, improve quality control, and enable predictive maintenance. AI and ML help manufacturers analyze data more effectively, leading to better decision-making and more responsive production systems.

Localization of raw materials is also becoming a key trend. By reducing reliance on imported components, manufacturers can strengthen their supply chains and mitigate risks associated with global supply chain disruptions. Localization supports long-term growth and enhances global competitiveness by creating a more resilient and self-sufficient production environment. In the case of power banks, there is a strong focus on research and development (R&D). Manufacturers are introducing innovations that lead to compact, efficient, and feature-rich products tailored to the needs of a tech-savvy consumer base. There is also a growing emphasis on incorporating fast-changing technologies and wireless charging capabilities, driven by consumer demand for greater convenience and efficiency.

What are the current challenges faced by the electronic manufacturing industry in terms of supply chain management?

The electronic manufacturing industry encounters several challenges in supply chain management that impact overall efficiency and cost-effectiveness. One major challenge is balancing inventory levels to prevent shortages or excess stock. Inaccurate demand forecasting can lead to overproduction or underproduction, both of which carry significant financial implications. Material delivery delays further aggravate these issues, leading to increased capital costs associated with additional inventory storage and missed production deadlines. These delays disrupt production schedules, strain resources, and hinder the ability to meet market demands effectively.

To address these challenges, we have implemented several strategic measures. We have invested in sophisticated tech-based inventory management systems that provide real-time data and analytics. This technology enables more precise demand forecasting and inventory control, helping to balance stock levels and reduce financial risks. Additionally, we have established strong partnerships with suppliers to ensure a reliable and timely flow of materials. These relationships help mitigate the impact of supply chain disruptions and ensure that production schedules are met. By focusing on these areas, we have overall enhanced our operational efficiency and strengthened our ability to respond to market demands effectively.

How does Ambrane differentiate itself in the highly competitive consumer electronics market, especially in the power bank segment?

We stand out in the competitive consumer electronics market through early market entry of the products, innovation, and strategic expansion. As a pioneer in the power bank market, Ambrane has built strong brand recognition and consumer trust. We have continuously evolved with consumer needs, offering products like the robust PowerHub and sleek wireless power banks. Innovations such as MagSafe and Qi-2 wireless charging and solar-powered options further enhance user experience. We are also expanding our market presence by onboarding distributors in Tier-2 and Tier-3 cities and exploring international markets. In addition to product innovation and market expansion, our widespread availability through multiple channels - such as e-commerce, omnichannel retail, and quick commerce - makes our products easily accessible to consumers. Lastly, the company’s easy replacement policy underscores our commitment to customer satisfaction and accessibility. This comprehensive approach reinforces Ambrane’s position as a leading player in the power bank segment and the broader consumer electronics market.

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