In a rapidly transforming global economy, India鈥檚 SME manufacturing sector stands at a critical juncture. The convergence of digital transformation, cloud-based ERP systems, and sustainable manufacturing practices has opened new doors for innovation and scalability. But with this promise also comes a unique set of challenges鈥攔anging from legacy systems and cost constraints to a shortage of skilled manpower and resistance to change.
At a recent webinar鈥攈osted by Construction World and Smart Manufacturing and Enterprises magazines鈥攎oderated by Aiyappa Muthanna, Senior Solutions Consultant, MEAI, Epicor, industry leaders shared their experiences and insights on overcoming these barriers and harnessing technology to unlock growth. The panel featured Dr Umesh Mhatre, Managing Director, Surface Modification Technologies; Sameer Kelkar, CEO, Grind Master Machines; and Amit Pradhan, Vice President 鈥� IT & CIO, Dixon Technologies. Together, they painted a compelling blueprint for the future of SME manufacturing in India.
Enhancing performance through material innovation
Dr Mhatre provided a powerful insight into the transformative role of surface modification technologies. These include coatings and chemical treatments that enable materials to function better in hostile environments鈥攚hether that鈥檚 high temperature, corrosion, or mechanical wear.
鈥淪urface modification technologies allow us to make components perform under specific environmental conditions. From aerospace to pharmaceuticals to imitation jewellery, these coatings are becoming essential,鈥� said Dr Mhatre. He added, 鈥淲hile India is still catching up, the Western world has long embraced these innovations. Our focus now is on making these solutions indigenous, sustainable, and scalable.鈥�
鈥淲e couldn鈥檛 just import technology鈥攚e had to innovate. Now, we have our own R&D centre, our own equipment, and we鈥檙e exporting technology back to Germany.鈥�
Surface finishing
Kelkar shed light on how micro and nano finishing have evolved to meet increasingly stringent industrial requirements. 鈥淏ack in 2010, car warranties barely lasted two years. Today, they go up to 10 or 15, and surface finishing is a big reason why,鈥� Kelkar explained.
As components rotate at high speeds鈥攚hether in vehicles, agricultural machinery, or industrial bearings鈥攖he precision of their finish becomes crucial. 鈥淲e now see components moving from finish level one to level three. That鈥檚 a significant jump and an opportunity for manufacturers like us to deliver machines that meet these exacting standards.鈥�
Kelkar emphasised that quality expectations have risen worldwide, and only manufacturers with strong internal systems and research can keep up. 鈥淲e need to be known for our technology, not just our pricing.鈥�
Building sustainable manufacturing
Sustainability, once a buzzword, is now central to manufacturing strategies. Kelkar said: 鈥淢anufacturing is inherently unsustainable. But it鈥檚 our moral responsibility to aim for net-zero.鈥� Grind Master has committed to achieving net-zero emissions by 2030 and is taking a two-pronged approach鈥攎ass afforestation and remanufacturing.
鈥淲e鈥檝e planted over 200,000 trees and are adding 100,000 every year. By 2030, we鈥檒l reach 800,000, covering 50 to 60 per cent of our carbon footprint,鈥� he said. Remanufacturing, too, has been a game changer. 鈥淲e take 15-year-old machines, tear them down, and rebuild them better. Companies like Maruti Suzuki and Cummins support this model 鈥� it reduces costs and carbon impact.鈥�
Dr Mhatre said. 鈥淏y extending the life of tools and components, we reduce waste and material usage. We鈥檙e also working on hydrogen fuel cell components, where coatings can make parts lighter and more corrosion-resistant. This is where material science meets climate action.鈥�
Digital transformation in action
On how digital transformation is being implemented at scale, Pradhan from Dixon, one of India鈥檚 leading electronics manufacturers, said, 鈥淒igital transformation is not a luxury, it's a necessity. We鈥檝e moved from measuring rejections to proactively preventing them using AI-based quality inspection systems. These vision-based tools check for defects in real-time, helping reduce customer returns and improve product consistency.鈥�
He explained how Dixon鈥檚 layered approach combines cloud ERP systems with startup partnerships and global platforms. 鈥淭raceability, MES systems, and custom analytics help our production teams take real-time decisions. This makes a huge difference when you're manufacturing at scale.鈥�
Global journey of Indian manufacturing
Grind Master鈥檚 global expansion journey is a testament to how technology and process excellence can open international markets. 鈥淏reaking into Japan, China, and the US wasn鈥檛 easy,鈥� said Kelkar. 鈥淚t took better product reliability, stronger branding, and cloud ERP systems that gave our clients transparency into every stage of the project.鈥�
A cloud-based project management system enabled Grind Master to provide real-time visibility to customers in different time zones. 鈥淚f a Japanese client wants to track the progress of their machine, they don鈥檛 have to wait for emails. Everything is available on their portal鈥攖hat鈥檚 the kind of trust and professionalism cloud ERP brings,鈥� Kelkar emphasised.
Embracing change
Change management remains a crucial factor in successful digital adoption. Kelkar highlighted the importance of empowering young engineers: 鈥淲e need to stop relying on low-cost labour and start positioning ourselves as a globally competitive tech hub. That means giving responsibility to younger teams and encouraging innovation.鈥�
Dr Mhatre agreed: 鈥淥ur first step was infrastructure. We built a modern factory in Bengaluru. Then came ERP implementation, TQM systems, and automation. Precision matters, especially when dealing with micron-level coatings, so reducing human error through automation is key.鈥�
Pradhan added, 鈥淎doption is a challenge across both SMEs and large enterprises. Most people use only 13 per cent of a software鈥檚 features鈥攋ust like how we use only a fraction of our smartphones. The government should consider incentivising ERP implementation costs for SMEs. This would help democratise digital transformation.鈥�
He further emphasised the importance of creating internal ecosystems. 鈥淎t Dixon, we鈥檝e built hybrid models involving SI partners, startup incubators, and even partners from China, Korea, and Taiwan. This diversity of thought and expertise helps us overcome roadblocks swiftly.鈥�
Looking ahead
India鈥檚 manufacturing sector is at an inflection point. But there鈥檚 a long road ahead. 鈥淲e still lack the deep material understanding that the Germans or Americans have,鈥� said Dr Mhatre. 鈥淚ndian engineering can achieve micron-level precision, but the metallurgy often lacks the treatment required for durability. That鈥檚 where our R&D focus lies.鈥�
Pradhan echoed the sentiment: 鈥淧LI schemes are a great start, but we need 360-degree transformation鈥攆rom policy and infrastructure to skills and systems. Electronics manufacturing is still nascent in India. We need to ramp up not just production, but also component-level innovation.鈥�
From blueprint to reality
While challenges remain鈥攂e it in change management, sustainability, or global competition鈥攕olutions are within reach. From adopting cloud ERPs and AI-driven quality control to building in-house R&D and remanufacturing practices, the SME sector is carving out its own success story.
As Muthanna summed it up, 鈥淒igital transformation isn鈥檛 just about software or machines. It鈥檚 about mindsets, systems, and a vision for the future. The blueprint is here鈥攏ow it鈥檚 time to build.鈥�
In a rapidly transforming global economy, India鈥檚 SME manufacturing sector stands at a critical juncture. The convergence of digital transformation, cloud-based ERP systems, and sustainable manufacturing practices has opened new doors for innovation and scalability. But with this promise also comes a unique set of challenges鈥攔anging from legacy systems and cost constraints to a shortage of skilled manpower and resistance to change.At a recent webinar鈥攈osted by Construction World and Smart Manufacturing and Enterprises magazines鈥攎oderated by Aiyappa Muthanna, Senior Solutions Consultant, MEAI, Epicor, industry leaders shared their experiences and insights on overcoming these barriers and harnessing technology to unlock growth. The panel featured Dr Umesh Mhatre, Managing Director, Surface Modification Technologies; Sameer Kelkar, CEO, Grind Master Machines; and Amit Pradhan, Vice President 鈥� IT & CIO, Dixon Technologies. Together, they painted a compelling blueprint for the future of SME manufacturing in India.Enhancing performance through material innovationDr Mhatre provided a powerful insight into the transformative role of surface modification technologies. These include coatings and chemical treatments that enable materials to function better in hostile environments鈥攚hether that鈥檚 high temperature, corrosion, or mechanical wear.鈥淪urface modification technologies allow us to make components perform under specific environmental conditions. From aerospace to pharmaceuticals to imitation jewellery, these coatings are becoming essential,鈥� said Dr Mhatre. He added, 鈥淲hile India is still catching up, the Western world has long embraced these innovations. Our focus now is on making these solutions indigenous, sustainable, and scalable.鈥濃�淲e couldn鈥檛 just import technology鈥攚e had to innovate. Now, we have our own R&D centre, our own equipment, and we鈥檙e exporting technology back to Germany.鈥漇urface finishingKelkar shed light on how micro and nano finishing have evolved to meet increasingly stringent industrial requirements. 鈥淏ack in 2010, car warranties barely lasted two years. Today, they go up to 10 or 15, and surface finishing is a big reason why,鈥� Kelkar explained.As components rotate at high speeds鈥攚hether in vehicles, agricultural machinery, or industrial bearings鈥攖he precision of their finish becomes crucial. 鈥淲e now see components moving from finish level one to level three. That鈥檚 a significant jump and an opportunity for manufacturers like us to deliver machines that meet these exacting standards.鈥滽elkar emphasised that quality expectations have risen worldwide, and only manufacturers with strong internal systems and research can keep up. 鈥淲e need to be known for our technology, not just our pricing.鈥滲uilding sustainable manufacturingSustainability, once a buzzword, is now central to manufacturing strategies. Kelkar said: 鈥淢anufacturing is inherently unsustainable. But it鈥檚 our moral responsibility to aim for net-zero.鈥� Grind Master has committed to achieving net-zero emissions by 2030 and is taking a two-pronged approach鈥攎ass afforestation and remanufacturing.鈥淲e鈥檝e planted over 200,000 trees and are adding 100,000 every year. By 2030, we鈥檒l reach 800,000, covering 50 to 60 per cent of our carbon footprint,鈥� he said. Remanufacturing, too, has been a game changer. 鈥淲e take 15-year-old machines, tear them down, and rebuild them better. Companies like Maruti Suzuki and Cummins support this model 鈥� it reduces costs and carbon impact.鈥滵r Mhatre said. 鈥淏y extending the life of tools and components, we reduce waste and material usage. We鈥檙e also working on hydrogen fuel cell components, where coatings can make parts lighter and more corrosion-resistant. This is where material science meets climate action.鈥滵igital transformation in actionOn how digital transformation is being implemented at scale, Pradhan from Dixon, one of India鈥檚 leading electronics manufacturers, said, 鈥淒igital transformation is not a luxury, it's a necessity. We鈥檝e moved from measuring rejections to proactively preventing them using AI-based quality inspection systems. These vision-based tools check for defects in real-time, helping reduce customer returns and improve product consistency.鈥滺e explained how Dixon鈥檚 layered approach combines cloud ERP systems with startup partnerships and global platforms. 鈥淭raceability, MES systems, and custom analytics help our production teams take real-time decisions. This makes a huge difference when you're manufacturing at scale.鈥滸lobal journey of Indian manufacturingGrind Master鈥檚 global expansion journey is a testament to how technology and process excellence can open international markets. 鈥淏reaking into Japan, China, and the US wasn鈥檛 easy,鈥� said Kelkar. 鈥淚t took better product reliability, stronger branding, and cloud ERP systems that gave our clients transparency into every stage of the project.鈥滱 cloud-based project management system enabled Grind Master to provide real-time visibility to customers in different time zones. 鈥淚f a Japanese client wants to track the progress of their machine, they don鈥檛 have to wait for emails. Everything is available on their portal鈥攖hat鈥檚 the kind of trust and professionalism cloud ERP brings,鈥� Kelkar emphasised.Embracing changeChange management remains a crucial factor in successful digital adoption. Kelkar highlighted the importance of empowering young engineers: 鈥淲e need to stop relying on low-cost labour and start positioning ourselves as a globally competitive tech hub. That means giving responsibility to younger teams and encouraging innovation.鈥滵r Mhatre agreed: 鈥淥ur first step was infrastructure. We built a modern factory in Bengaluru. Then came ERP implementation, TQM systems, and automation. Precision matters, especially when dealing with micron-level coatings, so reducing human error through automation is key.鈥漃radhan added, 鈥淎doption is a challenge across both SMEs and large enterprises. Most people use only 13 per cent of a software鈥檚 features鈥攋ust like how we use only a fraction of our smartphones. The government should consider incentivising ERP implementation costs for SMEs. This would help democratise digital transformation.鈥滺e further emphasised the importance of creating internal ecosystems. 鈥淎t Dixon, we鈥檝e built hybrid models involving SI partners, startup incubators, and even partners from China, Korea, and Taiwan. This diversity of thought and expertise helps us overcome roadblocks swiftly.鈥滾ooking aheadIndia鈥檚 manufacturing sector is at an inflection point. But there鈥檚 a long road ahead. 鈥淲e still lack the deep material understanding that the Germans or Americans have,鈥� said Dr Mhatre. 鈥淚ndian engineering can achieve micron-level precision, but the metallurgy often lacks the treatment required for durability. That鈥檚 where our R&D focus lies.鈥漃radhan echoed the sentiment: 鈥淧LI schemes are a great start, but we need 360-degree transformation鈥攆rom policy and infrastructure to skills and systems. Electronics manufacturing is still nascent in India. We need to ramp up not just production, but also component-level innovation.鈥滷rom blueprint to realityWhile challenges remain鈥攂e it in change management, sustainability, or global competition鈥攕olutions are within reach. From adopting cloud ERPs and AI-driven quality control to building in-house R&D and remanufacturing practices, the SME sector is carving out its own success story.As Muthanna summed it up, 鈥淒igital transformation isn鈥檛 just about software or machines. It鈥檚 about mindsets, systems, and a vision for the future. The blueprint is here鈥攏ow it鈥檚 time to build.鈥�
