We aspire to be our customers' foremost sustainability partner globally.
Jayant Kumar,
How do you visualise the growth of the Indian construction industry? How is Hilti prepared to support this growth?
The construction industry plays a pivotal role in the economic growth of India, contributing significantly to the country's Gross Domestic Product (GDP) and providing employment opportunities to millions of people. According to recent data, the construction sector accounts for around 8% of India's GDP and is expected to continue growing due to increasing urbanization, infrastructure, and industrial development, alongside government initiatives such as Smart Cities Development, Make in India, and Housing for All. Therefore, we take pride in serving the construction industry.
Despite its vital role, the construction industry faces several challenges that hinder its full potential. Construction remains one of the least digitized industries, and productivity is a primary concern, with projects often experiencing delays and cost overruns due to inefficiencies in workflow and resource management. Additionally, there is a shortage of skilled labour, posing difficulties in finding qualified workers for various construction tasks. Furthermore, health and safety issues remain significant concerns at construction sites, and the industry's contribution to carbon emissions presents environmental challenges.
Nevertheless, the construction industry is experiencing transformative developments globally and in India. Digitization is revolutionizing construction processes, facilitating better project management, collaboration, and communication among stakeholders. Enhanced visualization through virtual simulations and technologies like Building Information Modeling (BIM) and Robotics exemplify this progress. Notably, investments in construction tech start-ups in India are at an all-time high, indicating significant advancements anticipated in the industry over the next decade.
Hilti is uniquely positioned to meet the evolving needs of the construction industry due to its differentiation, direct customer relationships, and trusted brand. Through our differentiation, we empower our customers to innovate and improve practices. With a direct sales force, we remain closely connected to our customers, understanding their needs and guiding them through transformations. For instance, our Direct Fastening technology revolutionized construction fastening processes years ago. We continue to invest in innovation, expanding our portfolio to offer tailored solutions addressing specific challenges faced by our customers—whether hardware, software, or various services. Last year, we launched our new group strategy with an inspiring purpose: Making Construction Better, focusing on enhancing productivity, safety, and sustainability. Therefore, our commitment is to be the best partner for our customers' productivity, safety, and sustainability needs.
The Indian construction industry is growing leaps and bounds. What opportunities do you anticipate in this scenario for the company and its business?
Today, the central focus of all discussions surrounding the construction industry revolves around three words: ‘Productivity, Health & Safety, and Sustainability’. It's not just about completing projects; it's about ensuring efficiency, safety, and minimal environmental impact.
We will continue helping our customers enhance productivity on their job sites through ground-breaking innovations. While we have been pioneers in promoting health and safety, our commitment extends beyond our customers to include end-users inhabiting or working in the buildings we contribute to erecting. Moreover, sustainability is a key aspect we address both internally and externally.
Allow me to illustrate with an example. We recently introduced Nuron, a revolutionary technology that embodies our customer promise. Nuron offers a cordless platform with unprecedented performance, enabling heavy-duty applications once restricted to corded or gas-powered tools. All Nuron tools share interchangeable batteries and chargers, streamlining operations and reducing costs for businesses.
Furthermore, Nuron's cloud-connected services enable data collection during every charge, providing insights into tool usage, charging locations, and battery health via Hilti's ON!Track software. This data empowers informed decision-making, optimizing tool parks and reducing downtime through Fleet Management services.
Additionally, Nuron incorporates enhanced safety features, including Hilti's Dust Removal System (DRS), Active Torque Control (ATC), and Active Vibration Reduction (AVR). New technologies like ‘3D ATC’ and ‘SensTech’ further enhance safety, mitigating risks associated with tool operation.
Nuron exemplifies our commitment to addressing construction industry challenges and innovation which is much needed. We will continue developing ground-breaking technologies, leveraging research to tackle emerging issues and convert them into opportunities for growth in the Indian construction landscape.
Many organizations emphasize sustainability. What does this topic mean for Hilti globally and for you in India?
Sustainability is ingrained in our DNA at Hilti. With our new group strategy, we place even greater emphasis on sustainability within our purpose. We aspire to be our customers' foremost sustainability partner globally, accelerating efforts across all markets, including India.
We have already achieved our first milestone: CO2 neutrality within our operations. Through enhanced energy efficiency and sustainable alternatives for electricity procurement, we are offsetting the remaining CO2 emissions through exclusive projects in collaboration with the Hilti Foundation and climate partners. Additionally, we committed to the science-based target initiative, aiming for net zero emissions by 2050, requiring decarbonization throughout our supply chain and product lifecycle.
Sustainability is increasingly critical for our customers, who seek partners actively reducing CO2 emissions. We contribute in two significant ways: reducing CO2 emissions in buildings during design and construction phases, and fostering sustainability beyond the environment to encompass people and society.
Our Engaged Beyond Business corporate volunteering program exemplifies our commitment to societal impact. In India, we focus on economic empowerment, affordable housing, technology, and healthcare initiatives. Notably, our ‘School Chale Hum’ initiative mentors underprivileged children, providing personalized teaching to positively impact their lives.
Our sustainability efforts underscore our commitment to making earth a better place for all. We are proud to include sustainability as one of the three pillars of our customer promise.
How do you envision Hilti’s future footprint in India?
At Hilti India, we take pride in our robust organization comprising around 1,100 passionate employees across the country. With a unique direct sales model, we offer innovative solutions to become our customers' premier partner for Productivity, Safety & Sustainability.
Recognizing India's rich talent landscape, we established our Software Development Centre, HTSI, in Pune. This centre serves as a hub for innovation, harnessing local talent to drive technological advancements in digital construction technologies.
In line with our global manufacturing expansion plan, we inaugurated a state-of-the-art manufacturing plant in Vadodara, serving as an integrated competence centre for diamond products within Hilti's global production network. Equipped with advanced automation systems and sustainable practices, this facility epitomizes modern manufacturing principles.
Today, we employ over 2,000 people, manufacturing highly differentiated products, developing high-tech software, and offering innovative solutions through our direct sales team in India. Looking ahead, we remain committed to expanding our operations, both in India and globally, driven by excellence, talent development, and innovation.
