Holytek makes inroads to India through Woodtech Consultants
A tie-up between Taiwan's Holytek Industrial Corp and India's Woodtech Consultants has proven beneficial to both parties. As the agency to market Holytek's machinery in India, Woodtech Consultants has sold some US$2 million worth of Holytek equipment in 2005 alone. The reputation and competitive pricing of Taiwanese machinery, the after-sales and consultancy services that Woodtech Consultants provide, are some of the factors that contributed to Holytek establishing a strong foothold India. And Holytek's presence is expected to be further strengthened with the set up of Holytek India, with Woodtech Consultants again involved. Panels & Furniture Asia speaks with Mr. N Venkatakrishnan, Chairman and Managing Director of Woodtech Consultants, to find out more.
By STEPHEN TAN
MENTION the Indian market to 10 individuals and you are likely to get 10 different, even extreme views. Such is the diversity and fragmentation of the Indian woodworking industry that one is as likely to hear about its vast potential as a market that should not be touched even with a 10-foot pole, depending on their experience and the sector or region they operate in.
But the former certainly holds true for some Taiwanese machinery suppliers to India's furniture manufacturing industry, thanks in part to Woodtech Consultants.
As a company, Woodtech Consultants is relatively young but already, it is one of the most prominent players in the Indian woodworking industry. The company is the agent of a dozen machinery suppliers from all over the world, of which Taiwanese manufacturers make up the main bulk.
One such company is Holytek Industrial Corp, the manufacturer of a wide range of woodworking machinery including double surface planers, moulders, band resaws, panel saws, rip saws, rectangular tenoners, oscillation mortisers, wide-belt sanders and profile sanders, just to name a few.
Woodtech Consultants undertook representation for Holytek in India about three years ago. In 2005, it sold US$2 million worth of Holytek machinery, underscoring the popularity of the Taiwanese company's products in the Indian market.
"In India the quality of Taiwanese machinery is well known," explained Mr. N Venkatakrishnan, Chairman and Managing Director of Woodtech Consultants. "Some companies enjoy leading position in this market despite aggressive competition from European companies at the top end and Chinese manufacturers at the lower end.
"Not only is there a price advantage, machine performance and operation parameters of Taiwanese machinery are good and they have proven to be extremely well sought after among Indian woodworking products manufacturers."
The tie-up between Holytek and Woodtech Consultants, which came about from a meeting at Ligna+ 2003, is set to strengthen even further. Mr. George Ko, President and Export Director of Holytek, recently became a shareholder at Woodtech Consultants.
Both parties have also set up Holytek India and one of the new entity's immediate plans is to establish a showroom in Bangalore.
"The showroom will be used to educate people on how to work on various machines and to demonstrate capabilities of Holytek machines," said Mr. Venkatakrishnan. "Operators can be properly trained at this new facility even before machines are shipped out of Taiwan."
Mr. Venkatakrishnan also pointed out that Holytek has been on an expansion path over the last decade and its successful track record in various markets proves its products are proven with no quality issues.
" Holytek now has a presence in Canada with a showroom and its machines are extremely popular in North America. It also has an office in Germany, which sells products under is own brand name in Eastern Europe. If there doubts about its quality, Holytek will not succeed in these markets."
Woodtech Consultants was established three years ago by Mr. Venkatakrishnan and Mr. T Gopi. Besides Holytek, it has other Taiwanese companies such as Powerman, Yow Cherng, Excellent, Innovators under its wings in India. Elsewhere, Woodtech Consultants also represent Tritherm Technology from Singapore, Timbermat from the Philippines as well as companies from Europe.
"We are the only company in India that can handle turnkey projects-from sawmilling to manufacturing process, training of personnel, tooling, sanding, finishing solutions right up to installation," Mr. Venkatakrishnan said. "For us, it's important to sell projects instead of individual machines and we take care of after-sales service, which few equipment sellers are prepared to do."
Years of experience in the woodworking industry have enabled Mr. Venkatakrishnan, Mr. Gopi, Mr. Madanraj and Mr. Murugadoss the service engineers at Woodtech Consultants to provide other important value-added service-process optimisation-as well as cost-effective production.
The company also provides a one-year warranty backed by 15 engineers and a team of marketing professionals. "We recognise that if you can't offer benefits to the customers, business is unlikely to be sustainable. That's why we have chosen to make less profit in the short term but in so doing, we generate sustainable business in the long term," said Mr. Venkatakrishnan.
About Holytek
HOLYTEK was established in 1989 to manufacture a wide range of quality woodworking machinery as well as toolings and accessories. Over the years, the company has experienced strong and steady growth backed by continuous product improvement.
Holytek was one of the first Taiwanese woodworking machinery companies to realise that with an easily recognisable brand name, greater international sales could be achieved. As such, it co-operates with a worldwide net-work of more than 30 sales agents that can handle not only sales but after-sales service and technical back up. Each agent is the number one dealer in their respective regions. Holytek is also one of the first Taiwanese manufacturers to establish international joint ventures, starting in 1995.
There is now Holytek Canada, Holytek Sweden, Holytek Germany and recently Holytek India. Holytek India, a division of Woodtech Consultants Pvt Ltd, provides the best service network covering the entire country.
Holytek's machines were first sold in India in 2001 and now boast more than 500 successful installations, with many sold through word-of -mouth referrals. A new showroom will be set up in 2006 to provide demonstrations at any time. It will also stock machines to facilitate quicker delivery.
"People come to us because they know they will get service and warranty for a year, which is long enough to iron out initial teething problems. For any investment, the first year is critical-this is the period where all training, production processes and systems are put in place. Once they are implemented, the actual production is the easy part."
He also pointed out that as a market that is infamous for its high import duties, it is imperative that Indian producers purchase equipment that has the best value for money.
"Economical price for capital equipment is even more important because of these duties, which are applicable for just about everything, including raw materials. If you can lower initial capital investments, you will be able to lower production costs and consequently, you will be more competitive."
He noted, however, that such duties are already an improvement from the past and Mr. Venkatakrishnan expects the rates to be significantly lowered over the next three years.
With the expected expansion of the Indian market and the resulting growth of Woodtech Consultants, the number of support staff, including service engineers and marketing personnel are poised to increase as well.
"Our business is not restricted to India," Mr. Venkatakrishnan stated. "We are able to service markets in the Indian sub-continent, including Sri Lanka, Bangladesh and Nepal, as well as Middle East and Africa."
He added:"Holytek's machines, for example, will be marketed in the Middle East and Africa."
Asked to explain why African or Middle Eastern companies would go to Woodtech Consultants instead of directly from Europe or Taiwan, Mr. Venkatakrishnan replied:"One recent enquiry from Africa is from a person of Indian origin who is familiar with the Indian market. From the Middle East, it's from companies that have received excellent support for similar projects and many Middle Eastern companies are familiar with Taiwanese machinery. Some have bought directly from Europe but have found assistance hard to come by. That's what we can do and when it comes to consultancy, we are less expensive on comparison."
February / March 2006 by Panels & Furniure ASIA.
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