During a discussion that lasted more than an hour, Rahul Chopra, editor, Electronics Bazaar, tried his best to get a glimpse into the plans Tsuneo Murata, CEO, Murata Electronics, has laid out for India. His replies remained guarded. But like a true leader, there’s a lot he’s communicated in between the lines
EB: What are your plans for India?
We see India as a very large and important market but not yet developed for our products because the maturity of our products is more in tune with the technologically advanced consumer electronics. We think India needs to focus on infrastructural build-up for growth. As of now, it’s not a huge market in terms of manufacturing of consumer electronics products. Many things are still imported, for instance, mainly from China.
We have already established our sales offices in Chennai, Bengaluru and New Delhi in order to tap the MNC (multinational companies) manufacturers from the automotive (Tier 1) arena. The business is mostly done directly from our Singapore office.
EB: How do you view the Indian automotive industry?
Murata’s products that are related to the automotive industry are being used in the dashboard area, and in audio and navigation systems. These are products that do not have major functionality. We also have products for safety functions of the automobile. But these are still being imported from European countries. I believe the automotive industry in India is growing very quickly and will require a lot of new technology. But our Tier 1 automotive customers may not be fully ready to start production for those key devices in India today.
EB: Murata as a firm lays a lot of emphasis on R&D. Do you plan to tap India’s engineering talent for setting up R&D activities in India?
We think the products we have today may not be suitable for the Indian market because our technology is advanced and hence costs more than what the Indian industry may be willing to pay. We may need to develop products suitable for the Indian market. We are considering the option to design and manufacture products suitable for this market.
EB: So how do you plan to develop such products for India?
We have an R&D team in India that is driving collaborations with design houses, OEMs and academic institutions. Its main aim is to work with these partners and develop complete solutions or innovative products (components) that Murata can offer to Indian customers.
EB: The Indian government recently launched the ‘Make in India’ initiative. Japanese firms have expressed the desire to support this initiative. Any plans at Murata to utilise this opportunity?
It’s very delightful to have a good relationship between the two governments of our two nations. But our products are very small and light in weight (example MLCC: multi-layer ceramic capacitor) and hence they can easily be shipped by air too. Thus, setting up a manufacturing unit in India is not a top priority for us right now.
EB: What bottlenecks do you see in taking your business forward in India? Any steps or support that the Indian government should offer?
India is very strong in the IT sector and the development of new technology. But I am not so confident about India’s capability as a manufacturing nation, especially for the very small components. India has been successful in setting up a manufacturing base for the automotive industry. We hope it can develop similar capabilities in electronics manufacturing too.
EB: What is your take on technology transfer? India is a developing country. Do you plan to transfer any technology to India?
Our R&D team in India has one primary goal—to build partnerships to develop new products that cater to Indian needs. We do not plan to sell or license our technology. A very senior person with Indian roots has been working at Murata for a long time. His name is Karun Malhotra and he is heading our Corporate Technology Planning department. He is an IIT graduate, and he guides us on our strategy for India. For example, we now have a keen interest in the energy market area for smarthouses. That is a good technology to utilise in the energy sector.
EB: Your company acquired four companies in one year (2005). Do you plan any merger or acquisition in India too?
We have not found a suitable candidate in India yet.
