Refurbished German machines are not merely a cost-saving measure—they are becoming a competitive advantage.
As India’s Electronics Manufacturing Services (EMS) sector scales rapidly to meet growing demand from automotive, industrial, defence, and global customers, manufacturers are constantly balancing technology investments with cost efficiency. While new-generation machines remain the preferred choice for high-precision and multinational clients, refurbished imported equipment—particularly from Germany—is emerging as a strategic growth enabler.
In an exclusive interaction with EFY’s Nitisha, Vinodkumar Nalamaru, Co-founder & Director of Vishesh Innovative Technologies Pvt. Ltd., explained how the company evaluates machinery investments, why German equipment continues to dominate its shop floors, and how refurbished systems are helping Indian EMS firms expand capacity without compromising performance.
“Global companies and Tier-1 customers often prefer new equipment, especially when manufacturing highly precise components. However, for many applications, refurbished machines offer a compelling balance between performance and affordability, ” Vinod explained.
According to Vinod, the decision between a brand-new machine and a refurbished imported system is largely driven by customer requirements. “The cost difference is significant,” he added. “A new production line may require an investment of around ₹8 crore, while a refurbished alternative could cost nearly ₹2 crore. When manufacturers can achieve similar production goals at a fraction of the investment, the economics become very attractive.”
German machinery remains the company’s preferred choice due to its reputation for precision, reliability, and long operational life. While comparing the German manufacturing equipment to premium German automobiles, he mentioned that the engineering quality and consistency continue to set industry benchmarks.
Beyond cost savings, refurbished imported machines also contribute to productivity improvements. Rather than purchasing older versions of existing equipment, Vishesh Innovative Technologies typically upgrades to higher-capacity refurbished models. For instance, a machine capable of placing 60,000 components per hour may be replaced by a refurbished model capable of placing 100,000 components per hour, resulting in a substantial jump in production efficiency.
The company relies on in-house technical expertise to maintain and optimise these systems. With trained engineers possessing years of experience on specific machine platforms, Vishesh can efficiently source spare parts, perform preventive maintenance, and ensure consistent machine uptime.
Interestingly, customer concerns regarding refurbished equipment are minimal. The founder explained that customers review everything before onboarding manufacturing partners and are fully aware of the machinery used. In many cases, the reputation of globally trusted brands such as Siemens, Panasonic, and Fuji provides additional confidence.
Machine selection is more strongly driven by the evolution of component technologies. As electronic components continue to shrink in size, manufacturers require newer-generation equipment capable of handling finer placements and tighter tolerances. This technological evolution often determines when older machines must be upgraded or replaced.
Looking ahead, Vinod believes refurbished imported equipment will continue gaining popularity among Indian EMS companies. The combination of lower capital expenditure, improved production capabilities, and access to globally proven technologies makes it an attractive option for manufacturers seeking growth without excessive financial burden.
While the company currently maintains a balanced approach, combining refurbished imported systems with newer equipment, Vinod indicated that future investments in brand-new machines will be driven by customer demand, higher-value contracts, and the expansion of manufacturing capabilities.
As India’s EMS industry enters a new phase of expansion, the ability to extract maximum value from proven global manufacturing assets may prove just as important as investing in the latest technologies. For many manufacturers, refurbished German machines are not merely a cost-saving measure—they are becoming a competitive advantage.
