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partner the company has been realistic in its expectations and has placed a high level of trust and commitment on the partner firm.
Growth of the company in the last 10 years has exceeded the expectations of the parent. Between 2001 and 2005 the company has grown by around 300 per cent.The plan is to generate 5 – 10 per cent of the group’s total revenue from Indian operations 5 years from now.The company has been successful in making India the manufacturing hub of critical components for the Burgmann subsidiaries across the globe.
One of the most respected operations within the group
The company has an excellent track record of executing orders with the highest precision in the shortest possible time. According to Umar Balwa, Managing Director, Burgmann India “the Indian subsidiary is one of the most respected companies in the whole Burgmann group.The company is also considered to be the most dynamic and effective subsidiary”.
Keys to success Superior technology
Burgmann are one of the world leaders in technology in the field they are operating in.
The company invests a lot of money annually in research and development.The parent has transferred the technology and know-how to the Indian subsidiary.This has helped the company to offer products which are superior in quality and performance compared to that of competitors.
Background
Burgmann is one of the 10 independent operative business groups in the Freudenberg group, Germany. It was established in 1884.The product range of Burgmann includes mechanical seals, gas lubricated seals, seal supply systems, magnetic couplings, stuffing box packaging, automotive seals, rotary kiln sealing systems, gas lubricated
mechanical seals for pumps, agitators and compressors. Burgmann Industries has 16 sales offices in Germany and more than 40 subsidiaries and joint ventures globally.The company had 3,200 employees and a turnover of around US$ 450 million globally in 2004.
Burgmann India Private Limited was established in 1994 as an Indo-German joint venture between A.K. Engineering of Balwa Group and Burgmann GmbH.The company manufactures state-of-the-art mechanical seals and sealing systems for industries such as refineries, petrochemicals, power,
aerospace, marine etc. Burgmann India has a manufacturing plant in Mumbai and has 16 sales and service centres across the country.
India is a growth market for Burgmann Burgmann considers India as one of the most important markets in the world today in terms of global outsourcing, manufacturing and design.
The growing Indian market, availability of skilled human resources and the stable political system in the country are some of the key factors that the company considered before deciding to invest in India.When it comes to relationship with the local
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Today the company is the market leader in non-metallic expansion joints in India.
The company has invested in a custom-made Enterprise Resource Planning (ERP) package to increase overall efficiency. Using the package the orders are monitored at every stage - from the enquiry level to the final despatching stage and it brought about considerable efficiencies within all the key processes and functions.
Commitment from the parent company India is critical to the Burgmann group’s global strategy and the parent company has been very supportive and committed to the Indian operation.
The parent has been supporting the Indian
subsidiary with expert inputs, knowledge transfers and sharing best practices.The company also receives a lot of assistance from the parent for the employee training.To improve the performance 20 employees from India are given special training every year in Germany
Future plans
Burgmann India has set ambitious targets for the future.The company plans to become the largest subsidiary in the Burgmann group. It also plans to make Indian operations the headquarters of Asia Pacific region.
KE Burgmann Flexibles
KE-Burgmann is headquartered in Vejen, Denmark and is part of the Burgmann group of companies.
It was established in 1963 and is currently one of the main players globally in the field of fabric expansion joints.
It supplies fabric expansion joints, metal expansion joints and rubber expansion joints worldwide. KE Burgmann has eight subsidiaries in Denmark, Finland, India, Poland, Singapore, UK, Czech Rep., and USA.
KE Burgmann started in India through a joint venture with a partner in 1987 and set up a production unit of non-metallic expansion joints in Chennai. In 2001 the company became a 100 per cent subsidiary and started commercial production.
Burgmann India: At a glance
• Started manufacturing in India in 1994 as a joint venture between A.K. Engineering of Balwa Group and Burgmann GmbH.
• For Burgmann, India is: One of the most respected operations within the group
• Factors for success: Dynamic Indian Partners, Technically Skilled Manpower, Superior technology, Commitment from the parent company, ERP implementation.
• Future plans: Become the largest subsidiary in the group, Make India operations the headquarters for Asia Pacific region.
