May 15 2014 | Focus

Bevcon Wayors

“Necessity is mother of Invention” said by Plato. In the current dynamic world “Innovation” plays very crucial role, business sustainability totally depends on how technological innovations are taking place within the organizations to meet day to day challenges of competitive environment. All the current technological innovations are 100% synching with current market demands since we always aligned to market forces and expectations."

Y Srinivas Reddy, Managing Director, Bevcon Wayors Pvt Ltd shares his views with Sandeep Sharma about his company, core competencies, manufacturing base, product offerings, technical collaboration with Overland Conveyors, designing integrated material handling solutions, technological innovations, industry composition, core challenges and need for government booster to revive the economy. Edited Excerpts...

Could you tell us about your company, manufacturing base, product offerings and core competencies?
Bevcon Wayors is among India’s leading providers of high-quality, technologically advanced integrated bulk material handling and processing solutions company. The name ‘Bevcon Wayors’ was coined after it was creatively combined with a few letters of ‘Bucket Elevator Conveyor’ in 1994. Started with humble beginning being as 1st generation entrepreneur having clear vision and ambition in place and driven by passion to do something different to rising demand for bulk material handling solutions. Bevcon Wayors has come a long way by evolving as an industry leader that offers high-quality, technologically advanced bulk material handling systems. The company’s motto – ‘Engineering – Built to Last’ has been its success mantra since the last 20 years and even today Bevcon is fiercely committed to offer the best engineering services to its clients. Bevcon Wayors believes in striking the perfect balance between its people and the technological processes that it comes to create. All of us are committed towards the core value of the organization – iTREAT that stands for Innovation, Trust, Reliability, Empowerment, Attitude and Transparency. We are not just a manufacturing company; we create path breaking solutions to tackle different problems. We have three clear business verticals in the organization they are projects, products and air pollution control equipments. With exclusive teams from engineering to execution for each vertical

1. Bulk material handling projects for the core sector of power, steel, cement, sugar and mining.

• New Generation / Innovative conveying systems like Steep Angle Cleated Belt Conveyor, High Angle Sandwich Belt Conveyors, High Efficient Sugar Graders, Air-Supported-Belt-Conveyor, Pipe Conveyor & Overland / Cross Country / Long Distance Conveyors.
Stockyard equipments like Stackers & Reclaimers and followed by Circular / Linear Space Frame, Steel Structure Storage Sheds.

2. Material handling equipments like screens (flip flow, circular motion, linear motion, banana, de-stoner, de-watering), crushers (Impactor, Hammer Mill, Roll crusher, pulverizor, Jaw Crusher, Ring Granulator), Feeders & other conventional conveyors (Bucket Elevator, Screw conveyor, RAV, Drag chain conveyor, Roller conveyor, Ash conditioner etc.)
3. Pneumatic conveying systems & dust extraction system.

Further, Bevcon’s turnkey solutions include custom design, manufacturing, installation and servicing of bulk material handling equipment. A majority of these equipments are manufactured at Bevcon’s facilities itself which provide customers greater flexibility for custom designs suitable as per their requirements. Bevcon Wayors has major market share in turnkey execution of material handling applications for example raw material handling systems for steel plants, cement plants, fuel (coal/coke/ lignite) handling systems for coal and biomass based power plants, in-plant material handling systems, ferro alloy plants, sugar, fertilizer, agri, lime coke handling systems, etc. We are the only company in India to have all kinds of crushers, screens, feeders & sizers with in-house manufacturing facility.

Besides its strong manufacturing strength, Bevcon has also collaborated with many top engineering companies located in America, Europe, Australia and Asia as technological up gradation is mandatory to survive in the present competitive world. We believe that our strong after sales services as organization keeps us an edge-above our competition. We continuously innovate in three areas i.e. People - Processes – Products.

How did your company fare in FY2013-14 in terms of business achieved, operating profit and new clients acquired?
Bevcon is profit making debt free company from the inception and last year our sales turnover was Rs 193 crore & and has been growing at a CAGR of 20%. Bevcon Wayors has improved sales turnover and posted 5% more growth than last FY in spite of sluggish market conditions prevailing across. In the journey of growth we have acquainted with valuable clients like ThyssenKrupp, JK Cements, FLSmidth, Orient Cement, Bhubaneswar power, etc.

You have entered into a technical collaboration with Overland Conveyor Company Inc, USA. What are the likely benefits to your company and the customer at large?
One great break through for Bevcon in this FY is technology tie up with world renewed engineering firm ‘Overland Conveyor Co. Inc. – USA in the areas of bulk and long distance conveying applications. This tie up will facilitate taking Bevcon in bigger league of execution of projects in the field of mining, power sectors across India. The unique technology of conveying bulk material in ‘Troughed & Pipe conveyor’ will make a difference to the material handling industry from the perspective of cost economics, environmental, layout criticality challenges more in specific. The technology has been well received by Indian clients and consultants we look forward doing good business in coming years.

Overland Conveyor Company (OCC) is one of the leading global design consultants of Long distance troughed and pipe conveyors for various material handling applications. In their 3 decades of existence, OCC has the credentials of providing successful solutions for complex applications across sectors.

Bevcon Wayors is into bulk material handling solutions for more than two decades. What kind of expertise and experience have you gained in this segment?
Bevcon Wayors provides concept to commissioning solutions and execute turnkey projects for all bulk material handling applications. We have dynamic, dedicated and dependable over 300 employees and establish ourselves as a premium brand in bulk material handling industry in medium enterprise segment. Bevcon Wayors has also made conscious efforts to increasingly embrace technology to assist and sustain its growth. All processes at the company are SAP enabled. What sets us apart from our competitors is that we don’t sell products; we sell solutions to complex bulk material handling needs. We always ensure the following aspects for every sale that goes through which will create goodwill and confidence in our customers.

• Equipments are reliable and efficient in operation
• Best in quality-manufactured under in house ISO certified manufacturing units
• Cost effective
• Best in service
• Innovative features in the product
• Low maintenance/low down time
• Low wear costs
• Lowest product life cycle cost
• Technology transfer from collaborations
• Customized product development to meet the client needs

What are the factors considered while designing a sustainable, comprehensive and integrated material handling solution?
To get comprehensive solution to complex material handling application various factors are reviewed and brainstormed at various levels internally and as well as with clients and consultants, in fact its one of the critical aspect of design engineering to produce reliable material handling product or project. Few such factors are:

• Resources optimization while operation of the plant.
• Product lifecycle
• Safe and easy to maintain
• Overall investments
• Standardization of spares and components
• Low manpower requirement
• Automation
• Logistics
• Pollution parameters and control measures
• Energy conservation
• Training and skill development

Technological innovations are happening all the time. How far your solutions are in sync with the latest MH technological trends?
”Necessity is mother of Invention” said by Plato. In the current dynamic world “Innovation” plays very crucial role, business sustainability totally depends on how technological innovations are taking place within the organizations to meet day to day challenges of competitive environment. All the current technological innovations are 100% synching with current market demands since we always aligned to market forces and expectations.

Could you comment on the composition, industry size, and profitability of the Indian material handling industry? Do you see more companies coming into the organized category?
Currently material handling market in India is really unpredictable, ambiguous, uncertain, not able to define clear strategies to meet day-to-day uncertain challenges.Un-doubtfully current economic situation has larger impact on bulk material handling sector, this sector growth depends on infrastructure development which is really in shambles. Business opportunities have come down competition is fierce, very low fund and cash flows high interest rates are crippling the organizations sustainability same is the case in globally.

Due to the prevaling economic situation, instead of projecting the size, I feel projecting opportunities makes more sense. As per recent media reports, there are about Rs 10-12 lakh crore worth of projects awaiting clearances at various stages. Most of these infrastructure development projects are in cement, steel, power and ports sectors. As per 12th plan period i.e. (2012- 2017) investments in infrastructure is going to be nearly 10% of the GDP. If this planned investment is realized, it will propel the Indian economy to higher growth trajectory. This would lead to creating abundant business opportunities for the material handling sector as it is the key contributor to the infrastructure growth. Once current hurdles are overcome, the power sector is likely to grow rapidly as there is lot of gap in demand and supply exists currently. Similarly roads and ports are going have better growth prospects in coming years. There are nearly 200 small to major players in the Indian MHE industry.

What are the core challenges faced by the material handling players in India?
The major challenges currently faced by material handling players are:

• Cash flow issues
• Sluggish markets conditions due to very slow or nill progress in core sector Power, Steel, Mining and infrastructure areas.
• Anarchy at Governmental policy’s.
• Financial institutions focus on debt recovery than providing investment for the future projects
• High interest rates
• Delay in environmental clearances

What needs to be done by the Government to boost growth of the material handling sector?
Our expectations of the new government to boost growth of material handling sector are:

• Set the things right in the areas of policy guidelines
• Addressing the challenges of financial institutions who are heavily loaded with NPA’s and work out bailout packages
• Enhance foreign investors’ confidence by making irrevocable transparent policy guidelines
• Create core group of decision makers to oversee the implementation procedures
• Review environmental policies with the aim of establishing balance between development and environment
• Create single window clearance for all new projects so that take off period is smoother and faster

Keeping in mind the current market scenario, do you expect revival of overall demand in FY2014-15?
Yes. Everyone has great expectations on the business and market turnaround during 2014-15. Material handling sector is the backbone of infrastructure sector. We expect major business opportunities likely to emerge in this segment which will last at least for next 3-4 years. But we are realistic in our optimism and expect to do good business and achieve at least Rs 300 crore turnover by focusing more on medium range material handling projects.

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