Making a Global Impact

Chennai Metco Pvt Ltd’s humble ascent from a small-scale venture into a globally recognized provider of metallography and petrography equipment resonates with India’s strong manufacturing pulse, affirming the country’s growing manufacturing diaspora. The Chennai-based company leverages its technical expertise with custom and in-house manufacturing capability to thin the gap between India and the global market with its high-end machines and consumables.

As in the case with most of companies in India, Chennai Metco came into existence in the year 2000 armed with its R&D expertise, particularly with the TVS Group, the country’s leading auto component manufacturing and distribution Group. “From day one, we were looking to produce products that India was finding difficult to produce. We looked for gaps in Indian industrial product availability in material testing research and quality assurance,” shares Renganathan C, Managing Director, Chennai Metco Pvt Ltd. “Strong technical background and close association with central institutions and Indian Institute of Technology Madras (IIT Madras) aided us to meet the technical challenges and produce products with global quality.”

Brand identity rooted in science

As Chennai Metco initially focused on material testing, specifically examining the internal structures of metals, its philosophy and motto are reflected in its brand identity. “The world of seeing inside the metal is quite fascinating. When viewed under a microscope, you get to see mind-boggling designs—God’s own creation. We chose the most fundamental structures and placed them as our emblem,” explains Renganathan. He notes that the emblem has been appreciated by industry leaders and head honchos.

Taking to the world

The company expanded into the global market as confidence in its product quality grew. “As we realized that our products are doing well in the Indian market with customers confirming our product quality being at par with similar products from Europe and the US, we developed the confidence to step out of the Indian market and explore exporting to the European market,” says Renganathan.

Chennai Metco’s familiarity with German industrial contacts helped it to test the waters in exporting to Germany. “Contrary to what we had anticipated, we faced high demands from the German industry. We consistently worked with German customers to upgrade our product quality to meet their high standards,” he reflects. “As we gradually began exporting, our product quality got better simultaneously, further stabilizing our market presence in India.” However, Renganathan reveals that the real breakthrough occurred when Chennai Metco entered the American market, where the customers were more practical. “No other market in the world has volume like North America and this scale allowed for standardized quality,” he adds.

Global reach and strategic markets

Identifying the UK as the next big market for the company, followed by Germany, France, Spain, Italy, etc., he continues, “Currently, we find our exports to East Asia improving. Interestingly, the Middle East is taking steps to transition from a petroeconomic to a general industrial economy. We witness a significant investment in the General Engineering industry in the Gulf Cooperation Council (GCC) zone.” Describing Dubai as the ‘bazaar’ of the Middle East, Renganathan adds, “We have many dealers in Dubai who buy and resell in the Middle East as well as Africa. We also now receive more direct inquiries from various smaller countries of Africa apart from South Africa, which is already a developed industrial market.”

Chennai Metco’s abrasive cutters and carbide rod cutters are particularly popular in the export market. The company’s ability to customize solutions for clients, combined with deep industry knowledge, gives it a competitive edge. “Our experience and technical expertise enable customers to extract the maximum value from the products we supply,” he shares.

Advantage India

Leveraging its expertise in product making, Chennai Metco ventured into allied products like carbide rod cutting, ball screw/linear guide sectioning, and more. The growth of the Electronics industry in India demanded specialized products for electronics applications. Several new products were launched, particularly with support from IIT Madras/Advanced Manufacturing Technology Development Centre (AMTDC).

The new products were also marketed across the world, leading to increased revenue for the company. “Due to Government efforts and other various factors, the brand equity of India is also improving, helping us cater to demanding markets with reasonable success,” he adds. “India is in an advantageous position, and we are optimistic about strong growth in the coming years.”

Over the last 10 years, he has witnessed a positive trend, with customers no longer questioning the quality of Indian products. This underscores a significant shift in the global acceptance of ‘Make in India’ products. “In markets such as America and the GCC, there is a preference for Indian products due to many factors. The biggest competition is China, and we have to find our own ways to capture market share,” he asserts. “Our perception is that the customers also want to diversify the supply chain, which is beneficial for India as of now.”

Emphasizing India’s advantageous position in offering quality products at competitive prices, he continues, “Our knowledgeable workforce and ability to quickly produce equipment variants are advantages that no other country currently enjoys. Although the global economy is somewhat in a slow decline, the acceptance of Indian products appears to be improving, thanks to the quality-cost combination.”

Targeting global trade challenges

International trade policies and tariffs play a crucial role in shaping export strategies. In this context, Chennai Metco’s broad customer base across various regions has helped mitigate potential risks, despite the complexities of global trade. Interestingly, Renganathan believes trade restrictions have also created unexpected opportunities. “Restrictions by the West on Russia have actually helped us grow our volume in that market,” he points out. “On the other hand, high tariffs in Brazil limit our entry, while China’s high tariffs for America offer us an advantage. Despite the restriction on our exports to Pakistan, some customers there manage to access our products through free trade zones like Singapore, Middle East, etc.”

Adapting to the evolving trends

With changes in traditional automotive manufacturing and the transition to electric vehicles, companies, including
Chennai Metco, are facing an evolving landscape. Speaking on the challenges, Renganathan remarks, “As we see disruption in automotive manufacturing, the shift to electric is going to reduce
our market volume. We are actively finding solutions to electric vehicles and finding new opportunities in the Electronics market, which seems to be improving in India.”

Overall, the Chennai Metco MD believes that the Indian market is generally performing well and hopes this trend will continue for years to come, despite the turbulent global market. “For instance, while the German market is currently down; our favorable price and acceptable quality have allowed us to increase our market penetration,” he clarifies. Chennai Metco is simultaneously updating technology and trying to incorporate modern techniques like Artificial Intelligence (AI) so as not to lag behind its European competitors. “Life would not be easy, but we are confident in our ability to manage and succeed,” he emphasizes.

Strengthening Indian manufacturing

Companies like Chennai Metco can always learn from demanding customers. “The market pushes you and guides you through new technologies and changing customer needs,” says Renganathan, asserting that the gap between Western and Indian technology is narrowing. “Our close association with tech institutions like IITs helps us constantly upgrade and adapt to changing trends.”

Looking towards the industry’s future, he expresses concern about new engineering graduates. “The current generation of engineering graduates is often less equipped to face the industry, lacking fundamental science knowledge and having attitudes that are not well-suited to manufacturing,” he observes. However, Chennai Metco invests in nurturing young engineers internally who display potential and practical skills, developing them into valuable assets for the company.

With the steady rise of Indian manufacturing, Chennai Metco’s global reach affirms its adaptive approach to the growing trends and market. By leveraging its industry expertise to make the most of the presented opportunities, the company continues to contribute to nation-building and the overall economy.

Source: Chennai Metco Pvt Ltd

Sovan Tudu Senior Sub-Editor Magic Wand Media sovan.tudu@magicwandmedia.in

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