An Indian manufacturing company (Pahwa Enterprises) partnered with an American company (Novatec) on a knowledge-based manufacturing project. Pahwa had the necessary engineering expertise and lower costs compared to other partners. The partnership allowed Novatec to quickly develop a new drying product line to compete with a main competitor. The collaboration was successful due to shared vision, engineering resources, and cost advantages compared to other options. The partnership demonstrated opportunities for more US-India manufacturing collaborations that could benefit both countries.

1. Knowledge Based Manufacturing Project Between an Indian & American Manufacturing Company 3 rd Indo-US Economic Summit New Delhi, India September 13-14, 2006

2. Today’s Presentation This is a simple case history about how an Indian & American company came together to work on a project.

3. Background on Novatec Background on Pahwa Enterprises The Problem The Solution Observations & Future

4. I don’t pretend to be an expert on India and am very much just getting to know the country, but what I see intrigues and fascinates me! There are many more who are experts on India at this conference than I will ever be

7. Medical Devices and Supplies Automotive Building Materials Packaging Carpet and Fiber Industrial Household and Garden Products Toys and Consumer Products

8. B.Braun Medical Baxter Healthcare Tyco Healthcare Merit Medical Fresenius Medical Polymers St Jude Medical Boston Scientific HiTech Hose Terumo Medical Tech Group Inc.

9. Graham Packaging Corp RPC USA Prairie Packaging Pactiv Salmon Arm Plastics Plastipak Fortco Manufacturing Berry Plastics Visy Packaging Clear Lam Winpak

10. Delphi Automotive Visteon / ACH Lear Corporation North American Lighting Conmet Walbrough ABC Plastics Key Automotive

11. Carpet and Fiber Handling: Shaw Industries Accent Yarn M&M Fibers US Fibers Candlestick Mfg. Nitrogen and Gas Drying: Dupont Cerex Tillman Pactiv Visy Packaging

14. Novatec: Aging Drying Product Line Conair: Main dryer competitor introduces new dryer technology and quickly captures significant share Conair dryer uses desiccant wheel technology from Munters (Sweden/USA)

15. Novatec would need to form partnership with specialist similar to Munters/Conair arrangement Potential existed with another European company, a Japanese company and several US based firms Plus one company in India ????

16. Technology based firm Willingness to provide specialized engineering to supplement Novatec engineering group Strong potential for trusting relationship Willing to open doors on both sides to cooperative engineering arrangement. Technology sharing would be required. Not just a buy-sell relationship. Rational cost platform to challenge competitor Potential for strong relationships at top of organization for lasting business relationship Sense of urgency to respond to new product quickly, but properly

17. The easy thing to do was to go with a US firm, primarily due to comfort zone and logistics But, disadvantages Viewed as another “buy-sell” nothing special relationship Most didn’t offer significant engineering or testing facilities Cost platform was not advantageous to competitive challenge

18. European partner had technology, but wasn’t interested in joint engineering effort. Plus extremely high cost platform Japanese partner had technology, but wasn’t interested in joint engineering effort and had other Asian partners Plus extremely high cost platform

19. Technology based firm (Pahwa) that had strong sense of urgency Strong engineering group that company was willing to dedicate to new project Instant strong relationship and common vision between both company’s top executives Both had much to gain: Novatec gains product line, Pahwa gains US acceptance Cost advantage of up to 60% over European manufacturers and 25% over US manufacturers Language advantage over Europe & Japan

20. What is India????? Americans have been isolationists to start with and most Americans know little about India & its people, its culture, its industry, etc. The most known about India is back-office outsourcing India also seen as “closed market” and not as much known networking as with other potential European or Japanese partners

21. From agreement to production of prototype: 6 weeks! A complete plan for overtaking the current competitor within 1 year Shared manufacturing in both India & US locations to suit both parties

22. India-US connection is not immediately intuitive to most US manufacturers Little is known about India and its manufacturers due to insular nature of both countries US manufacturers have typically relied on European technology partners and lately looked to Asian assembly partners India offers tremendous talent pool within knowledge based manufacturing (not just assembly) & technology sectors, but those assets are somewhat a hidden from most of the mainstream US The language issue is a huge advantage to most American firms and should be a more natural connection than it is today Availability of engineers and 24/7 turnarounds a real plus! Entrepreneurial spirit is very much alive in India! Zeal and pride is very much evident and alive in India!

23. India has moved from “emerging” to “surging” and opportunities will continue to abound Encourage more exchanges and natural networking between US and Indian companies Encourage technology transfers Continue opening of Indian economy and take a more global outlook Move beyond reputation for back-office to manufacturing & technology transfers and co-operative agreements Promote yourselves! Look outwards!