Upholding stringent global quality standards is paramount in our choice of component vendors.
Sharwan Agnihotri, Head Mining and International Business, and
Hyundai Construction Equipment has completed 15 years in India and you have made some strong foothold in India. How do you look forward to Hyundai as a company in India? What is the investment you are looking for next 5-10 years in India?
Hyundai Group has set its sights on the Indian market. Given India's strategic geographical position, centrally located on the world map, it becomes an advantageous hub for distributing machinery from our plants to various directions - south, west, east, and even north towards Russia. Moreover, we envision the potential to export machines from India to the American market. Our Indian operations, bolstered by the exceptional skills of our team members are well-equipped to cater to both the domestic market and facilitate our export endeavors. To further strengthen our capabilities, we are contemplating expanding our facilities, particularly in low-cost areas, focusing on welding, assembly, and automation. This emphasis aims to elevate our facility standards, enhancing productivity and ensuring top-notch quality in our offerings.
You have a wide range of products from construction to mining and other application areas. The mining sector is going to boom in next 5 to 10 years. Can you throw some light what are the product lines for that sector?
In our mining business at Hyundai, we've successfully sold units ranging from 8 to 38 tons. While we initially introduced a 50-ton model, we later discontinued it to focus on product enhancement for a more global appeal. However, we're excited to announce the imminent launch of the HX series, featuring a 50-ton model, in India. The HX series is built on a global platform, offering us a significant competitive edge in terms of fuel economy and production efficiency. Our preliminary trials have yielded promising results, and backed by Hyundai's robust support network and service capabilities, we're confident about making significant strides in this segment.
Mining machines run on rigorous environment. How do you maintain the durability and reliability of your machines?
Hyundai prioritizes quality as a cornerstone of our operations. Our meticulous vendor selection process reflects this commitment, though it may contribute to a slower localization pace. Upholding stringent global quality standards is paramount in our choice of component vendors, a key factor in our HX platform's global nature. Primarily focused on the mining segment, our HX series comprises models like the HX360 and HX380, tailored for quarry, granite, and marble applications. The upcoming HX520 is designed for usage in cement, coal, and iron ore contexts.
Currently, we're actively engaged in discussions concerning ultra-large excavators, studying market demand and assessing their potential positioning and pricing. The products are readily available in Korea, and their launch depends on our strategy, considering aspects of scalability and market placement. Our flexibility allows us to carefully decide which product to introduce based on various factors.
Can you throw some light on your material handling products?
Our material handling product are not manufactured within India; rather, we specialize in importing and distributing these products. We source our inventory from Korea and China, primarily offering Hyundai material handling equipment, which has garnered significant success in the market. Our clientele includes reputable companies like Kia Motors, LG, and various e-commerce giants to whom we've supplied machinery. Our overarching ethos revolves around prioritizing quality, placing a strong emphasis on durability in our offerings. In a competitive landscape dominated by imported suppliers, we've carved a swift path forward. Specifically, in segments demanding prolonged performance such as battery forklifts, Hyundai stands out. Our machines are preferred for their extended operational duration on a single charge, a feature highly sought after by customers seeking reliability and longevity.
What are your after-sales initiatives?
Hyundai's core strength lies in our commitment to after-sales support. To enhance this, we've developed a customer-centric app that empowers our customers to log their own complaints. As our Vice President highlighted, we've essentially placed the reins in the hands of the customer, allowing them to assess our performance. If satisfied, they can close the complaint; if not, they have the freedom to reopen it. This process enables us to closely monitor and swiftly respond to address their concerns. These parameters serve as benchmarks for our dealers, ensuring timely and efficient customer responses. Additionally, in our support for mining machinery, we're tailoring our offerings to provide diverse support options. These include on-site support, deployment of service engineers to the site, and stocking spare parts on-site. We're also introducing comprehensive maintenance contracts, providing customers with varied service options. Our goal is to maximize equipment availability, prolong component life, and guarantee superior machine performance throughout its lifecycle.
How do you see the growth for Hyundai? Can you can throw some light if you are planning some investments in the coming year?
In 2023, Korea witnessed significant investment, and India experienced substantial recruitment drives. Our focus remains set on the 2030 goals, slated for September, intertwining our global challenges with ongoing operations. The potential of India as a key player in the future landscape is undeniable. Beyond mere infrastructural investments, our chairman advocates for a reciprocal exchange of human resources, recognizing India as a hub for global leadership. Leveraging the abundant talent among the Indian populace can open doors not only for our facilities and plants but also for creating diverse opportunities for Indian employees, potentially extending their reach to Europe or the USA. This commitment aligns with our company's policy of prioritizing investments in our people, our direct employees—a fundamental pillar of our strategy.
Additionally, Hyundai has already infused approximately $70 million into India, recognizing it as a growth frontier, a sentiment mirrored in our headquarters' optimistic investment outlook. Our focus extends beyond financial investment; we are heavily investing in automation and robotic building tools. These tools are pivotal in ensuring a "first-time right" quality standard, thereby upholding and perpetuating a journey of sustained quality improvement.
