Power Tools Industry - Fine-tuning Its Operations

Power Tools
Drill Machine
Cutting Machine
Hilti Cutting Machine
The power tools have a long association with the Indian construction sector but with ongoing upgradation and innovation in the productline, its area of application is getting extended to wider areas such as demolition, chiseling, drilling, cutting, abrasion, fastening etc and as a result of which it has become a multitasker.

In India, the market of power tools is currently divided into three categories - low, medium and high. The users belonging to low and medium categories are generally price conscious and most of them opt for low cost countries products or locally manufactured poor quality products whereas on the other hand, the high quality category is driven by the users who are aware of the ongoing innovation, and also know the proper usage of power tools and always look for superior quality products with an excellent after sales services. Bosch, Makita, Hilti, DeWalt, Hitachi are the big organized players, known for their quality products, R&D back up, and improvement and quality service.

The ongoing industrial growth in India has created demand for progressive and modern power tools and the sector has witnessed an amazing upswing in construction, general engineering, fabrication, service and wood working industries. Currently, the total size of power tools industry in India is about 1500 crore of which the organized sector enjoys 850-900 crore markets share. As market is maturing and expanding, the end users are looking for quality products and services thereby opening up huge business opportunity for big brands.

For this perspective story, Maria R. initiated an interaction with various organized players in the industry on relevant points related to the market, quality of products, technological trend, R&D, operators training, customers support services etc; their views are appended.

Shyam Raghunandan
Your overview of power tools market in India, its size and growth potential.
During the last 15 years, Hilti has been the pioneer in bringing new technologies and methods into the Indian professional construction market.Over 15 years ago, we introduced professional chemical anchoring technology into the country allowing corrective work as opposed to demolishing and re-building. This has led to significant growth in the related power tool market with products such as combi-hammers and rotary hammers (such as the TE 70 and the TE 30).We also introduced diamond coring and heavy diamond cutting into the market with industry leading products such as our DS wall saws, DD 200 coring machines, and the newly-launched, easy-to-use DD160 coring tool.We see >1500 crore professional power tools market growing at more than 20-25%.

Please share with us your products range, market focused areas and company's market share with us.
Rotary Hammer
Hilti has been serving professional construction customers in India for the past 15 years with industry-defining, cutting-edge products and services. This includes power tools, laser-based measuring, chemical and mechanical anchoring, installation, and fire-protection products.We also provide industry-leading design services to our customers and have our own (non-dealer) service network for repair. Hilti is present wherever professional construction happens. In a high-growth country like India, residential, commercial, and power sectors have the largest demand-supply gaps and this is where we see the biggest opportunities.Hilti operates with its direct model in more than 100 locations across the country.

There are so many low-cost countries products available in lower segment where quality does not matter but in medium and high segment, quality and technological advanced products play big role besides price. Please brief us about your products technological edge in the present competitive environment.
Hilti passionately creates enthusiastic customers and builds a better future. Our competitive edge is our direct sales team, our superior technical and design services, and our high-quality, in-house repair network.We have more than 2000 direct customer contacts every single day and this gives us an opportunity for our customers to tell us the challenges they are facing. This allows us to structure a value proposition that has a clear relevance to their businesses. Professional construction customers in different trades are looking for a partner to their business and are looking for superior quality and excellent service.Hilti is the only company that delivers the entire range of measuring, opening, fastening, and protection solutions under one roof in a seamless fashion with a clear focus on innovation driven by our direct customer contact.Our power tools for example address topics like operator health with vibration reduction, dust-control, and wrist-break-protection technologies.We have a range of cordless tools which, while addressing productivity in un-electrified zones, also provide safety while working at heights. Similarly, our design services push the boundaries of rebar and anchor installations with our own proprietary software PROFIS, and allow a significant savings in chemical used in these applications.In addition, we will keep investing in markets such as India and China to bring products that are suited to local conditions and customer needs.

There is lack of awareness among the operators about the proper usage of power tools and various operations they can perform; what are the systems placed in the company to cope up with this to fine-tune operators' skills?
Electric Breaker
Hilti is the only direct selling solution provider to the professional construction customer.We work directly with our customers to understand skill gaps and provide onsite training on a daily basis. Training is provided not only to operators but also to managers, quality, and maintenance teams as and when required.We have partnered with our customers and the government to increase our investment to train construction laborers and the workforce with the latest available technologies and products.Hilti owns and operates its own service network without any dealers.Therefore, our customers have complete assurance that only genuine spare parts are used.Also, we are increasing the awareness of preventive maintenance in the market to reduce overall cost of ownership for our customers.This is a topic that is currently not very wide-spread since many customers still prefer to repair tools only at the time of failure.

Power tools industry is known to bring new products after a short interval to have edge over competitors; please brief about your R&D activities as it plays an important role.
Hilti is the innovation leader in the market both with products and tool services.Using our direct customer contact, Hilti has brought innovations such as the brushless motor into heavy demolition, cordless rotary hammers into the HVAC & façade trades, dust-free system in concrete cutting and grinding, vibration reduction technology to reduce operator fatigue, and the TE 3000: A 30-kg electric breaker for heavy demolition setting new industry standards each time. Even through the worldwide construction downturn, Hilti has maintained its expenditure into R&D and continues to do so.

What are the customer support services that your company offers?
Hilti's entire team operates with a single mission to passionately create enthusiastic customers and build a better future.Our direct selling teams include our sales teams, our repair teams, our design teams, inbound-channel, and customer-care-handling teams. These teams provide support in terms of technical advice, problem-solving on site, preventive maintenance services, technical seminars, etc. We also have a toll-free number (1-800-102-6400) where customers can call to check on stock, order material, enquire on order status, order tool pick-ups, and to also lodge complaints when dissatisfied.

What are the new initiatives at hand to strengthen its sales and marketing network?
For the past 15 years, Hilti has and will continuously invest in its sales and marketing network. We operate in all major cities and in over 100 locations across the country with our direct selling teams.Going forward, we will continue to invest in geographies with high growth potential, segments of business where there is a demand for quality products, and also in our technical and repair services to offer superior value to the industry.We have recently launched our new Hilti Online (www.hilti.in) channel, where customers can order regular items with minimum hassle.All their current agreements and rates are automatically linked to their online accounts for a seamless transition. Our toll-free inbound ordering service allows customers to order on the phone. We will continue to invest in our market reach through these direct-selling channels to offer our customers the best experience possible.

Vijay Pandey
Your overview of power tools market in India, its size and growth potential.
The power tools sector in India has seen an upswing and demands for power tools is expected to rise at the rate of six percent yearly. Currently, this sector is valued over Rs.850 crores which takes in account the organized segment of the market.

Bosch Power Tools is a leader in India and has a wide portfolio of professional and DIY tools. After gaining the leadership position in blue tools (professional) segment, we want to now focus on promoting the "Bosch@Home" concept - which primarily aims at reaching out to the 'Do-It-Yourself' (DIY) segment in India. We, at Bosch, believe that this segment has a huge potential, and with the influx of a rising middle class, we are seeing a discerning consumer who is seeking a better life and is willing to be adventurous. Therefore, we believe that "Home improvement" is going to be the next big trend.

Please share with us your products range, market focused areas and company's market share.
Bosch Power Tools has a variety of tools to increase the efficiency of professionals and at the same time making their work easier. These include corded and cordless tools for wood working, metal working, construction segment as well as intelligent measuring instruments. Bosch offers more than 2000 accessories compatible with its power tools in India. Centralized stocks management system ensures ready availability of spares and accessories. "Bosch System Specialist" (BSS), Bosch Power Tool's premium retail concept also houses the latest and most innovative Bosch Power Tools. There are 45 BSS centres in India that provide a consistent Bosch brand experience to its customers.

Impact Drill
Bosch Power Tools has also made its mark into the do-it-yourself market and the development of lawn and garden equipment and high speed rotary tools-Dremel. The Bosch Tightening System is a step further from the conventional air tools. It allows the user to determine the torque delivered for every operation. Other DIY tools include Home Tool Kit, Aquatak and IXO.

Bosch Power Tools is a leader in India and has seen double digit growth year on year. Every minute one Bosch power tool is purchased somewhere in India. Bosch Power Tools has managed to capture 1/3rd of the market. In the year 2011, Bosch Power Tools India sold 6 lakh tools and this year we are planning to sell around 9 lakh.

There are so many low-cost countries products available in lower segment where quality does not matter but in medium and high segment, quality and technological advanced products play big role besides price. Please brief us about your products technological edge in the present competitive environment.
Today, professionals expect a power tool to have high power and performance, long lifetime, fast charging cycle as well as high level of user safety and compact design. Our range of power tools combine all these features, and help boost engineering standards.

Bosch is an innovation and technology driven company that has invested into making world class, quality products year on year. Our products are coveted by industry professionals around the world and the range caters to diverse industry segments such as automotive, construction, manufacturing, electrical, electronics and interiors. Our innovative Bosch Lithium-Ion technology enables these convenient-to-use tools with 400% longer battery lifetime and quick charging capability.

As the world's leading power tool manufacturer, the company recognizes the crucial needs to address and design solutions which will meet the user's daily challenges and issues at work. In India, Bosch Power tools have been used extensively for infrastructural projects such as the Delhi Metro Rail besides creating Bus Body building kits or providing Railway Track maintenance kits with 11kg Hammers. The tools have a strong loyalty across the globe due to their innovation, power and quality usage and each year, more than 32 million Bosch power tools are sold. A Bosch power tool is purchased worldwide every second.

There is a lack of awareness among the operators about the proper usage of power tools and various operations they can perform; what are the systems placed in the company to cope up with this to fine-tune operators' skills?
We at Bosch Power Tools are playing an important role in educating our customers and partners on innovative power tool technologies by bringing them first to India and also ensuring suitable trainings for Indian engineers, technicians and artisans.

Chain Saw
To address the training needs of our stakeholders, Bosch Power Tools has invested more than Rs.50 million (€ 0.8 million) in land, building and equipment of the training centre located in Bangalore, Karnataka. With more than 700 square meters area, in the middle of the city of Bangalore, this is one of the biggest Power Tools' training centers across the globe, keeping into consideration the training requirements of India and SAARC Countries for next one decade.

We aim to enhance our reach in the coming years by initiating training and development for dealers, customers, sales force, organizations and educational institutes, rural artisans, technicians and underprivileged people. At this training centre, we train direct retail customers, dealers/retailers and their sales force, institutions and large industrial houses as well as their internal staff.

Power tools industry is known to bring new products after a short interval to have edge over competitors; please brief about your R&D activities as it play an important role.

R&D investments have been pivotal in developing cutting edge products. More than 10% of our re- venue worldwide is ploughed back in R&D and Training every year.

In the recent past, we have launched world-class products ranging from lithium ion cordless tools, measuring instruments, DIY tools such as Home Tool Kit, Aquatak, Lawn and Garden tools and Dremel to help one complete score of jobs effortlessly and without depending upon anyone.

What are the customer support services that your company offers?
The industrial growth in the country has created demand for progressive and modern tools and the 45 BSS stores in India help create access for customers. We have already covered metros and urban areas and now we plan to tap the rural artisans through the Train the Trainer program. One of the initiatives taken by Bosch Power Tools to train rural technicians and artisans is the Bosch Vahan. There are 4 Bosch Vahans so far, which act as a display cum demo center on wheels. The vahan is dedicated for upgrading the skills of carpenters, electricians and plumbers. This mobile training van is equipped with all the power tools and the accessories for hands on training.

Bosch Power Tools also help train direct retail customers, dealers/retailers and their sales force, institutions and large industrial houses as well as their internal staff. We also conduct our TTT (Train-The-Trainer) programs for instructors and faculty, who in turn conduct similar programs for students and other users, to transfer the skills and knowledge attained by them during different levels of our trainings.

For DIY customers, there is a customer helpline number that offers support services, after sales.

Besides this, we actively engage with leading engineering institutes and corporate houses and have built a community outside the Bosch Power Tools network with NGO's, industry bodies and welfare communities.

What are the new initiatives at hand to strengthen its sales and marketing network?
We have already spread our wings quite comprehensively in metro and urban India and the same is evident from the fact that in India, out of every 3 tools sold, one is Bosch Power Tool. Now we intend to cover rural artisans through our various programmes and TTTs (Train-the-Trainer) programmes meant for vocational training institutes shall help us achieve this dream.

This year, we are planning to focus on promoting the "Bosch@Home" concept across retail stories - which primarily aims at reaching out to the 'Do-It-Yourself' (DIY) segment in India. We, at Bosch, believe that this segment has a huge potential, and with the influx of a rising middle class, we are seeing a discerning consumer who is seeking a better life and is willing to be adventurous. Therefore, we believe that "Home impro- vement" is going to be the next big trend.

Akhil Jain
Your overview of power tools market in India, its size and growth potential.
India is a growing market for power tools. Present size of the market is about Rs.1000cr in the organized sector. The unorganized sector must also account for another Rs.500cr mostly catered by low price imports from China/manufactured in India, some of them offering good quality as well. Because of the low price, these tools are more affordable for the artisans in various segment.

Please share with us your products range, market focused areas and company's market share.
We are Distributors for Husqvarna Construction Products. The range of products consists of Concrete cutting, Drilling, Grinding Polishing and special purpose products. These equipment are electrically operated or driven by Petrol Engines, Hydraulic, afew products operates on pneumatic.

All the products are specialty products for construction, therefore our focus is also on Real estates, Infrastructure projects as also Rescue and Demolition involving RCC.In the current scenario of market, we are receiving very good response from the target customers. Husqvarna is offering very good quality thus we are confident of cornering more share in the market.

There are so many low-cost countries products available in lower segment where quality does not matter but in medium and high segment, quality and technological advanced products play big role besides price. Please brief us about your products technological edge in the present competitive environment.
Husqvarna Construction Products our world leaders in their field thus offers best technology available. We do face some competition from the low cost technology products cheap equipment.

Power Tools Market

Husqvarna is specialty in their respective field-therefore whatever they produce are best in the segment. Some of the products like K 3000 cut n break is the patented machine from Husqvarna and is getting the overwhelming response from the contractors in this field due to its low cost and great cutting depth of 400mm.

So the machines like this are sideling the ancient technology machine like wall saws/ wire saw as there initial cost is very high.

There is a lack of awareness among the operators about the proper usage of power tools and various operations they can perform; what are the systems placed in the company to cope up with this to fine-tune operators' skills?
We are providing training to the operators as soon as they buy our products, on some products we give demonstrations before the user decides to buy. For the high end specialty products, our overseas experts provide after sales training in the users premises/sites as the case may be.

For Demolition Robots, and some other high end products, we take the users to overseas for traning in operations & maintenance as well.

Cut-n-break
Power tools industry is known to bring new products after a short interval to have edge over competitors; please brief about your R&D activities as it play an important role.
Husqvarna offers complete range of construction equipment, the R&D implements improvements on the existing range of products.

Periodically new products are also introduced

What are the customer support services that your company offers?
Our products are excellent in terms of quality thus repairing are rare occasion. Should such situation arise, the products are sent to our well equipped service centre in Delhi. We also send our Service Personnel to customer site if so required.

We also have Dealer network who have well equipped service facility to facilitate service to the users as and when needed.

What are the new initiatives at hand to strengthen its sales and marketing network?
We are increasing our Dealer network in the unrepresented area, recruiting additional manpower in Sale & Service to support the additional network.

Further we are making Applicators Meet where we will showcase our products also demonstrate to drive home the advantages of various products.

Cut-n-break
Your overview of power tools market in India, its size and growth potential.
Power Tools demand is growing with respect to growth in Construction, General engineering, Fabrication, Service and Wood working industries. In India 5 to 8% market is organised and remaining is unorganised so there are huge opportunity to grow which will indirectly and directly effect the Branded power tools market. Retail growth is more now days In India compare to other developing and developed countries which will directly affect to Hitachi-Koki India dealer network.

Tile Cutter
Hitachi-Koki India estimate 15,000 Millions Power Tools Business for branded and other players in India. There are four Major Branded Players in Power Tools which are Hitachi, Bosch, Makita and Dewalt. Overall 15% growth in power tools in India year on year and 9 to 10% growth for branded products.

There are some local manufacturers who are entering into Power Tools business in India.

Please share with us your products range, market focused areas and company's market share.
Hitachi-Koki India has a large Varity of Power tools which are used almost in all the areas where the possibility is. Hitachi has very much demand in power tools business. We have 250 running Model which Includes Cut of Machine, Grinder, Hammers, Drills & Impact Drills, Tile Cutter, Planner, Outdoors, Cordless, Etc which are covering all the areas like Construction, General engineering, Fabrication, Service, Wood working & Outdoor Power tools equipment. We address the Market Demand and develop the tools with the help of our R&D in Japan to satisfy the customer needs. We introduced lots of power tools yearly based on anticipation of Indian Demand.

There are so many low-cost countries products available in lower segment where quality does not matter but in medium and high segment, quality and technological advanced products play big role besides price. Please brief us about your products technological edge in the present competitive environment.
Drill Impact Drill
I agree that there are lots of Low cost Power Tools which are not good at all in quality. But now Market is maturing and customers are more conscious about the quality and service part. As I have mentioned now Organised Retail is growing and customers are educated in terms of Technology, Quality, Usage of Power Tools. Now Customer is Looking value for money which includes Least Repair, Easy to Use, User-friendly, good in quality and Finally reasonable price and Hitachi-Koki India is rich in all these Areas.

There is a lack of awareness among the operators about the proper usage of power tools and various operations they can perform; what are the systems placed in the company to cope up with this to fine-tune operators' skills?
Hitachi-Koki India has very good network and Brand image in Indian Market. HKI has 250 authorised dealers and 50 authorised services centre in all over India. HKI provides service and repair facility at all the branches and Authorised service centre. HKI do customer visit also in order to give Demo and technical advice. HKI offers the service campaign quarterly all over India so that customers can be benefited with all the technical aspect. HKI has 7 Branches across the country including service centre. HKI has 1 Service head who periodically will be visited every Branch and conduct training programs at Branch and dealer place. HKI conduct yearly once service training program for all the Branch Service persons and authorised Dealers at locations. Service persons visit to Customer place and provide the Product training, Demo and Safely and security usage of products.

Cut of Machine
Power tools industry is known to bring new products after a short interval to have edge over competitors; please brief about your R&D activities as it plays an important role.
Hitachi- The Rising Sun
Inspire the Next-Breathing Life into next generation and Future Societies.

As per the Brand name it self Hitachi means the rising sun means we continuous focus in New Product development, Continuous products improvement and Easy to use of products.

As per Hitachi Tag Line... Inspire the next.

HKI believes to provide the power tools to customers as per their Demand. Hitachi has R&D department in Japan which always works on continuous improvement in Products usage and process. Our focus is to treat the customer in such a way that by word of mouth we will be introduced to other customers from them.

What are the customer support services that your
As we have discussed in Ans4, we provide best after sale services to our customers. We are very much focused to give the immediate response to our customers with positive results and that is the key which sustain the Hitachi Products into the market. Hitachi is rich in quality power tools provider.

We give timely delivery of Tools, Spare parts & Accessories to our customers as per the promise date given by Marketing Department and Dealers.

What are the new initiatives at hand to strengthen its sales and marketing network?
HKI has made lot of changes to increase the individually focus on its customers. Hitachi has best Educated Sales and Marketing department. We study the competitor's performance and also act accordingly. We have made some more targets including Sales, Brand Awareness, Marketing, Dealers network, Sales training, Branch Performance, Key account Management etc.
NBM&CW July 2012
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