Electronics Industry is yet to grow a lot bigger than it is currently

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Pick-and-Place is a critical machine in PCB assembly. TimesTech had the opportunity to interact with Bikash Kumar Tiwary, Director, Rezute, who is starting his new venture in the EMS industry with Europlacer’s Pick-and-place machine, and Gary Brown, Regional Sales Manager-International, Europlace, at one of the largest expos for Electronics Industries, Electronica and Productronica India 2022, to learn about Bikash’s motivation for starting Rezute, choosing Europlacer, the future of EMS in India and central India as a growing; and Gray’s views on working with Rezute.

Read the edited excerpts from the interview here:

TimesTech: Tell us about your journey and relationship with Europlacer. 

Bikash: We got a demand in the states where they were trying to set up an electronic cluster to mature the electronics industry. That is where we came up with the idea to start with the first unit of PCB assembly over there. One of the important machines in PCB assembly is pick-and-place. I wanted to find a pick-and-place that is suitable to today’s market needs and our project planning. We found Europlacer online and due to the reputation, that they have in Europe, we knew that very well-known companies are using Europlacer already and they are flexible machines. They have been proven in the industry so I contacted them. So, that is how I also met Bergen, who is the distributor for Europlacer, here in India and we had a discussion going with them.

TimesTech: How an idea came to mind to start up an EMS?

Bikash: The plan for Rezute is to be present in hardware manufacturing, product design, and critical manufacturing. I came across an article that said India is lacking in hardware manufacturing capabilities and there is a very good push from the Central government and state government. They would like to see new companies coming into the Venture, trying new things, and trying to compete globally if possible or at least clear the needs of the domestic market. So, that is how we came to the idea that we should start with the electronic industry and set up a unit of PCB assembly.

TimesTech: Tell us about Europlacer’s journey and experience with Rezute.

Gary: It was very fortunate for us that he found us and contacted us. Once we started to engage and have discussions, it was refreshing. I will explain why. India very tough market for us. We are a much smaller company compared to our competitors, and we are not so well known. But we offer a very different solution. Most of our competitors primarily target the high-volume market. Our market is very much low to medium volume point mix. So, when we are trying to sell it to a vendor, trying to push the message that we have a different solution, it is quite tough and not everyone understands it. This gentleman understood it straight away and as soon as we start to talk it became quite evident that we had the right solution. He understood it. The approach is very different. We listen very carefully to what he wanted and started to model everything to make sure that we provide the right solution. We are very grateful to have the opportunity as well, particularly, going into this new environment. The first pick-and-place machine, hopefully, will not be the last and that’s our challenge going forward. The machines are not here yet but we are preparing all of the resources and the support to make sure it goes well. I think the start of a very good relationship.

TimesTech: Explain in brief about Europlacer. 

Gary: We’re a relatively small company but that does not make us any less incredible supplier. I am not going to mention the names of our customers, but if we look at the typical range of customers, there’s an awful lot of the EMS companies and, EMS companies, when they’re selecting a pick and place machine, they have to be sure that what they are buying will be able to manage any challenge. So, what we have is a multifunctional machine, designed to place from very small to very big, very tall, very heavy components and a machine that can build PCB up to 1.6 meters long as well. That is pretty unique. One of the other major benefits is, it has a very big feeder capacity. You will not see that in other machines and the solution typically from the Japanese is, it’s a more modular approach. So, for them to compete with us on that level they need to offer maybe two or three machines. The Europlacer is very successful in Europe. We supply a lot of Aerospace and Defense type companies where the products are very high value, very complex, and quite often safety critical.

TimesTech: How do you look at the future of EMS in India? 

Bikash: India is a growing economy and most of the PCBs are imported into India. We want to be an import substitute here. I believe that the electronics Industry is yet to grow a lot bigger than it is currently. We want to be early adopters where we can get into it, and bring state-of-the-art machines to be a bit unique from what India has already seen. Our first line will be medium volume production line and low to high mix. That is where we had a requirement of high flexible machine which has the agility and lower downtime for change and updates.

TimesTech: Why did you choose Raipur? 

Bikash: There is no matured electronic cluster in central India. If you will go to the northern side or southern side of India, you will see clusters in cities like Delhi, Manesar, and Chennai. You do not have such kind of industries in central India and that is where the governments are trying to push hard. Due to that, we came up with a solution that we can be the company and march with the government to mature the electronic industry in central India. At the same time, for us, it is a new opportunity to enter a new interest area. Also, Raipur is located at the center of India so we can access any part or region of India from that specific spot without any problems and all the facilities are available there.

TimesTech: What will be your unique selling position or the key features that you will offer in your product?

Bikash: We are here, first, to cater to the region over there. We have a vision of transitioning from being an EMS to an OEM. As of now, we would like to be the import substitute and try to cater to the industry that is in requirement of PCB and bring the state-of-the-art machinery and have the right processes, right practices, and, quality and customer satisfaction which is top of the line.

TimesTech: Do you have any industry in your mind that you will target first?

Bikash: So, we are focusing on the IT and EV sectors first. So, that is a sector we would like to target. There is not enough supply in the market so that is where the import substitution comes in.