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Monday, 06 Oct 2014
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Manufacturing in India will continue to grow

Q. Tell us about Murata's presence in India. What is the growth you have achieved during the last three years in India?


Murata India was incorporated on 22 September 2010, and started operations on 1 October 2010, with a total manpower of five. In order to provide more support to our north Indian customers, we started our branch office in New Delhi, in September 2011. Subsequently, we also started our Bangalore branch office to focus more on R&D customers. Murata is steadily making its presence in India stronger to provide more support to our local Indian customers. Today, we have a total of 23 employees in India, including two expatriates.Murata global sales amount is JPY 843.6 billion in 2014 F. The sales contribution from India is still relatively small due to the structure of the electronic industry. While the final assembly process is done in India, the circuit board bonding process is done outside India for some segments or applications.


Nonetheless, we see many other opportunities available to be explored, as our customers have been transferring and improving their R&D functions in India, ahead of manufacturing. We believe that manufacturing in India will continue to grow gradually. As such, for the past three years, we are building our presence in India by having more footholds around the country, and constantly working on brand recognition and brand awareness activities in India.

Q. Do you have any plans to set up a manufacturing unit in India? If yes, when? If no, why not?.


We do not deny the possibility of having our own production in India one day in the future. However, as of now, our focus is to enhance our sales and marketing activities in India through the strengthening of our sales engineering. We want to provide good products, strong technical support, and excellent service to our customers in India, to win their hearts and trust before moving to the next stage.


Q. Don't you think most of your products are little ahead of time for the Indian market? How are you creating user awareness about your products in India?


Murata has wide range of products that can cater to the needs of the various customers in India, from both, global and local major manufacturers. We view not only manufacturers, but IC R&D and system integrators as our key partners in India. These India system integrators have a big scale business in the global market. They can propose total solutions to various global majors. Hence, we are focusing on them to develop new businesses in India.


Apart from increasing our footholds in India, we are also creating the awareness of our products in India through the use of cross medium - exhibition, print media, websites etc. All the MARCOM (marketing and communications) activities are aimed at increasing our product and brand awareness in India.

Q. Which product segment is expected to see maximum growth in the coming years in India?


We are expecting a good and steady growth in the automotive, wireless communication, AV, home appliances, energy, healthcare, and EMS businesses in India. Besides that, we also see positive business potentials from the major system integrators in India, who have their own IC R&D functions in the country. They will be able to bring in new businesses not just within India, but to the global markets too. That is why we need to consider the product segment growth in a broader market perspective.


Q. Indian consumers are supposed to be priceconservatives. Do you have any India-specific products?

Murata's philosophy is to put focus on innovation. We strive to bring overall cost-efficiency to our customers, that is, to provide them with a total solution with our advanced technology, reliable products, and strong global technical support network.


Advanced research and development

Murata develops and accumulates proprietary technologies for materials development, product design, process development, and manufacturing, as well as for software, analysis and evaluation.


Murata engineers in diverse fields are linked seamlessly together to develop technologies and products that offer new value suited to each era.


Murata also collaborate actively with specialist partners worldwide to further expand its markets, as well as to facilitate continued innovation.


Global network

We have developed an integrated system of development, production and sales to provide products and services that meet the local needs of customers worldwide.


We have established a robust global network, having R&D sites in Japan, the Americas, Europe and Greater China. Our main production sites are located in Japan, Greater China, and the ASEAN region.


Long-lasting relationship of trust with customers


Customers know that Murata can provide sound solutions to meet their needs through its technology for precision Monozukuri technology (manufacturing) and our broad product line-up.


This results in a high level of customer trust, as evidenced by its large shares in many global markets. (e.g. Murata capacitors global share is about 35%). Our capacitor sales account for about 30% of our total annual sales). Many other Murata products boast top global shares as well. Underpinning this robust performance is the steadfast trust that customers place in Murata.


Murata is doing well in other price-driven markets. The company has proven that it is able to contribute to these emerging markets too. Its price may not be the lowest price in the market, but it is definitely price-competitive. The production capacity enables it to enjoy the scale of economy, coupled with its production technologies and know-how through years of experience; it is able to be more and more efficient. This, in return, helps the company to continuously improve on its price competitiveness and its customers can enjoy the benefits as it passes the cost savings to them.


Murata believes that India will continue to progress and the market demand for reliable and quality products will grow. For instance, demand for advanced functional electronic components, such as thinner and miniaturization and core technologies of sensors and wireless communication etc, will expand. As a global market leader in the electronics components industry, Murata aims to live up to our promise as the "Innovator in Electronics. Murata is always ready to support the Indian market with all the various product requirements.


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