The Growth Summit | Hyderabad Chapter Ep. 5 | YES BANK, Max Life Insurance

Focus ideat innovate Ena yes bank and CNBC TV8 present the growth Summit vision for a $10 trillion economy in association with Max life insurance all right time now for our next panel which is titled beyond the norm read defining Innovation for progress and it is dedicated to hyderabad's emergence as a city of innovation poised to reshape India's economic landscape without wasting any more time I can't help but start with you moit I know for a fact that you know godavari drugs which you help run there are some key Focus areas that you look at as far as the R&D aspects of the company concerned how do you think Innovation is powered at the R&D business in order to ensure that your business keeps moving forward I think the larger R&D you can in terms of Pharma industry can be broadly defined into two parts one is development of new products of which Mr Sati R and Dr sa Prasad have spoken enough the second segment of the R&D what the country needs to focus on or is rather focusing on already is redefining the applied sciences which is the engineering redefining the processes by improving the processes in terms of cost efficiency in terms of safety efficiencies in terms of green technologies where we are more conscious towards the environment and Manufacturing at a larger scale the quantum as we talk of so this is what we are focusing on mhm and this definitely fuels the rather should be fueling the next round of absolutely and Manufacturing at that scale sure leaves plenty of potential for Innovation and we'll come to that in just a bit but before I get any further Dr barui I have to ask you as a company on The Cutting Edge really when it comes to Enterprise digital transformation I'm just curious do you think companies in Sunrise sectors in Hyderabad I know they're faced with two options when they Embrace digital transformation when they Embrace Innovation it can only be one of two things do you feel the step by step incremental potential is what they would rather face and do you think it's a process of simple Improvement or do you on the other hand think that embracing digital transformation and this big change of innovation at least from their perspective could on the other hand hamper business growth at least in the near term it's got to be one of the two at least in the near term which one is it uh thank you US Bank and CNBC tv18 I think uh uh I would I would actually put it in one sentence right I think you should have a mindset of disruptive digital shift but the approach should be incremental right it can't be one because it depends on the size of the company size of the sector uh the location the people you have and all those things right I think Sunrise sector is inherently Innovative right uh Innovations are easily accepted by the people right and being a sunrise sector you have lot of competition you have to stay ahead of the curve uh to stay ahead of the curve I I think the digital shift has to be rapid but that doesn't mean that you do a rapid digital shift and fail uh what you have to do is start with incremental get the digital foundations right right when we say digital foundations it means uh I'm talking from it or any any perspective right do I have data in place do I do I have infrastructure in place are my processes automated you have all of them uh you know uh uh you have that Foundation now go big bang and do a uh disruptive digital shift I think it's no-brainer it has to be a combination of both and striking that balance like you said I think is key to any Innovation at least uh in keeping in mind both the risks and benefits involved Mr Raju that makes me come to you because it's a it's an interesting case study that we're talking about here um at fabc steel structures pre-engineered buildings is something that um is discussed I'm sure on a day-to-day basis given that we're talking so much about infrastructure growth as far as the country and its immediate future is concerned um no doubt real estate infrastructure is a very key component of that 30 trillion um Target that India has uh do you think that pre-engineered buildings will cards on the table at face value have key advantages over older and Legacy processes if yes quickly Enlighten us on what these advantages are and what is the Innovation potential really that we're talking about you WR pointed out in the growing economy and this technology uh moving forward at a faster phas definitely steel buildings are going to take at a very right spot in the construction industry the basic advantages of steel buildings are you can construct much faster now you can see in Hyderabad actually we are talking about Hyderabad how it is going to be Forefront in the technology advancement in terms of construction technology biotechnology and Pharma yes in the construction also the acceptability of Steel Buildings in high- rised buildings is very good in Hyderabad compared to other cities so what is the penetration that we're looking at and what is the factor of growth Steel versus the older proc it is year on year it is increasing okay and the growth for uh this industry is C of 15% MH and uh uh one of my uh ex colleagues spoke about this uh Innovations in this industry definitely we need to see how this penetration of Steel construction into uh infrastructure industry going forward we are going to see lot of uh non-availability of skilled Manpower so we manufact we design the building as per the custom requirement all are Styler made buildings then we design we manufacture install at site so these factory made structures are highly quality controlled and less Manpower is used de site and much faster construction right but Dr pel you know as part of your company the fact that there's so much Innovation that's being spoken about do tell me how has uh you know parle rail infra helped when it comes to Innovation at the Indian rail as you rightly said uh rail infrastructure is one of the key drivers for the Indian economy and very specific to your question on Innovation within the real sector we could see many examples the big examples the covid threw a challenge of you know importing wheels so that's where the Innovation came in and they said that why not we have our own forged wheel plant here right and the only obstacle the Indian industry was facing was the long-term contract for this and that's where the government came up with a 10-year demand and that's where we have now one of the finest for steel plant coming in and coming to WAND Bharat train itself absolutely it's again an innovation from within the country M developed by Indian railways by Indian uh engineers and today it is the poster boy across the world today we are already talking about exporting W bhat across so now coming to specifically to at patil rail we have been focusing a lot on Innovation let me talk about the digital part of what we do we have a digital uh company we have what we call a startup within the company right so we are now doing uh Cutting Edge systems and solutions for digital monitoring of the rail track all right so track maintenance has been a very uh manual oriented kind of a thing right so you need huge number of people keyman what we typically call they have to go and you know uh inspect more than 150,000 kilometers of track which is becoming very very difficult and getting people to do that kind of job so now we have video monitoring so we have set up certain uh condition monitoring so very high speed cameras that are attached to the trains they just go around as the train moves around and you know immediately detects what kind of faults are there on the track and immediately reports and goes to the cloud we have image processing and artificial intelligence sitting there to tell you that what are the exact defects and where the defects are so this is an one very important thing that we have worked out and it's now uh already panned out in the market yes bank and CNBC tv18 present the growth Summit vision for a$ 10 trillion economy in association with Max life insurance yes bank and CNBC tv18 present the growth Summit vision for a$ 10 trillion economy in association with Max life insurance I need to come back to you Mr M you mentioned a little while AG go about how scaling up will be a very critical part of Indian Innovation um I can't quite help but think back to the uh you know bulk drug park that's supposed to come up at nakali what will that do for your business really will you see a shift in production capacity closer Home to um Hyderabad uh and does you know scaling up and Catering to demand uh for an industry at large also what does it do to the kind of work that you're doing on the infrastructure front on the in front are you ready for the scale up really so yes I mean uh just as like the park coming up at narali there are almost all the states in India the state governments are focusing on creating good industrial parks with uh know so-called amenities mhm and common facilities which are required otherwise for the industry to provide for themselves so what it does effectively at a very uh I would say at a reduced capex you can still have those facilities and the industries can be more compliant to what the requirements of the day are all right and of course volumes licenses become easier because these are all pre-licensed parks so your environment clearances you don't really need to go to uh public hearings MH uh B2 category it can happen in a year which can otherwise take maybe 3 to four years so a lot of advantages of being part of these kind of parks mhm for example a fluent treatment plant I mean from the kind of industry background that we come from that's a huge Challenge and the cost involved is so high both from the capital point of view and from the operating cost point of view operating cost is the industry has to Bear there's no option but capex at least if there can be a common infrastructure which is created and an effective infrastructure which can meet the global demands today MH we need to be conscious towards our environment for the next generation for our own generation right while managing the growth so these kind of parks are really going to drive the you know the the scale of operations to the next level right coming back to us specifically I think our manufacturing focus is more towards Maharashtra and Telangana in the bordering areas so I don't think we are as a company looking at narali right now but I think these kind of parks overall will definitely help in a big way absolutely and Dr barui even as we talk about bringing production capacities closer and you know um Shoring down on our capex even as we have these capabilities um at hand the fact remains that Hyderabad has this distinct advantage of having Tech Centric growth for the longest time now it's been probably the most familiar story that we've all read about watched with our own two eyes happen right in front of us do you think this serves for an excellent template if India were to achieve its $10 trillion Target by 2030 are there lessons to learn from Hyderabad and its trist with technology yeah absolutely I think uh you need to look at uh four factors actually right you need to look at the regional strengths uh I think uh every region has its own strength whether it is uh you know in terms of uh developing Pharma or you go to the port cities to develop Logistics you go to uh mining for Northeast but I think as you said I think it is universal but I think you need to look at the regional strength uh where you have availability of a lot of talent and educational institutions I'm sure India is I think universally doing it everywhere right that's that's number one right um uh I think uh uh covid has also uh uh taught us a good lesson that tire two and tire three cities can be a great uh option in terms of lowering your costs as well right people have uh were used to sitting in odc's these restricted environments have gone to their villages with the excellent internet infrastructure that we have are able to actually work on the client products and platforms through vpns and other stuff so that that tells us that you can actually work from Tire 2 and tire three cities right great examples I think I came to know very uh you know not recently but at least few years back is Deron is doing extremely well in it actually because of its proximity to Delhi and other places and people want to go there nice environment Etc right so one is the regional strength two is upskilling and reskilling this this uh I I see as a as an IT entrepreneur and being a digital product Engineering Services Company I see that this people stop learning actually right I think Skilling reskilling uh is very important for the existing Workforce and also taking that Skilling to the rural parts of India is very important I think you you you need to tell them how to do coding you to you need to give them the technological knowhow I think those are very important right third thing is uh digital infrastructure you have I think India has I think has one of the amazing digital infrastructures definitely it'll Aid whether it is open network digital Commerce where you can use the platform to do any kind of Commerce uh you have UPI everything is linked to Adar and know your digital identities are well established I think these are all very good recipes right and government policies of course right and you know I I and I'm glad that you make a a large part of that answer more about talent because even as we spoke about or always speak about the tech Centric growth of Hyderabad I think brain drain was something that we also often associated with this topic of discussion but it's the reverse today you're seeing Hyderabad actually attract Talent as opposed to losing it and that's not a claim that I'm making I think linkedin's future of work study says it what do you think has changed if you get what you wanted uh outside in your home country I think you'll come back right so that's the plain answer or simple answer so I would say I think Mr shinas mahankali was saying that there are there are 320 Global capability centers right I think a lot of experts uh who spend most of the time there are are coming up in leadership positions and middle management positions and are enjoying the same kind of comfort uh affordability their kids have lot of uh opportunities to go to educational institutions in Hyderabad in context to Hyderabad uh I think and and then I think we are moving from cost Arbitrage to Value also right so your brain is also stimulated you get to do a lot of innovation now in India right and and and the Great Value addition part that India offers I think is probably our greatest export given the times that we find ourselves absolutely you know what Mr Raj have to come to you next even as we speak about Innovation happening day in and day out right in front of our eyes you represent a sunrise sector in manufacturing that's looking at growth projections of 133% year on year how do you prepare yourself to match that kind of growth simply in terms of demand and this rapid scale up in production do you see any challenges arising in terms of actually going about meeting this demand and having to scale up production what are these challenges no as such there are no challenges but we can andand we can put more plants but the availability of skilled Structural Engineers and all is becoming really difficult that is going to the challenge manufacturing front there is no challenge so if we can bring in technology so we do the design detailing manufacturing and installation at site if we can connect uh using Ai and machine learning to this all independent activities and integrate everything we can even produce faster but very simply sir what do you think has changed with regard to how big infrastructure projects were conceived and executed in the past Visa we what's being done today surely there must be some change that you're seeing Innovations aside there is a dramatic change now we have something called as G shaki I'm sure you know that what it is just for the uh sake of reputation GTI shaki is an integrated approach where you have Rail Road and everything integrated and all the clearances that are required to be taken is is on a portal you know for for example if you want to build one rail line you you need to have about 10 different clearances and that was getting stuck in whether it is Forest whether it is land acquisition or various other statutory clearances everything has been integrated digitally and every every information that is needed for any decision maker in various department is all available and of course now we have a very strong leadership which has set timelines for clearances but I want to very quickly get the last word from three of these gentlemen even as Dr bori spoke about how brain drain has pretty much ended because of the talent the overabundance of talent I have to ask you your company does well make profits what do you do with them invest in enhancing present day capabilities or look or look to make new four Ray which would be the way you go forward it has to be a combination of both it can't just be one mhm we definitely need to survive and sustain and grow and what we are doing today as our strength and Venture and explore into new areas as well all right and that's a two-pronged approach that you will take of course in keeping with Innovation itself and Mr Raju even as India is in the midst of a warehouse boom we spoke about how consumption has pretty much hit a peak how do you see very briefly warehouses change and evolve in keeping with present day Innovations yeah uh we need lot of warehouses across India and the material handling efficiencies has to improve to the large extent we need HB spoke model right across India from the major cities and major manufacturing hubs to Villages rural areas right it is going to grow at a faster phase and we are working with a lot of warehousing companies as well right so Hub and spoke model in line with the demand that you're seeing moving forward and the last word to you Dr patle I know for a fact that uh even as we talk about all these Innovations one big challenge is the global supply chain situation we're seeing es and flows it's gone up come down geopolitical issues are a big deterrent to you know doing business in a steady manner how do you navigate these challenges maybe two three points a cheat sheet of sorts to get around them make an India that's it absolutely make an India for India and for the world all right I think being truly atmana will solve so many of these problems and with that gentlemen a pleasure speaking to you all Innovation and progress can Will and must go hand inand and hopefully we'll be a part of that ever evolving process thank thank you so very much for these insights it's been an engaging conversation yes bank and CNBC tv18 present the growth Summit vision for a$ 10 trillion economy in association with Max life insurance Focus ideate innovate enable

Channel: CNBC-TV18

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Id: K0fcJhGoX_g

Length: 20min 57sec (1257 seconds)

Published: Thu Apr 11 2024