India's link to world players.
-Rubber Asia, November - December 1998
With over 25 years outstanding commitment and proven performance, SBM's leadership position in India is unassailable.
SBM Chemicals & Instruments Pvt. Ltd. and its sister concern, Polymer Products Corporation based in Mumbai, is probably the best known agency house servicing the Indian tyre and rubber industry today. With over 25 years of outstanding commitment, and proven performance, its leadership position in the country is clearly unassailable.
The group not only represents the leading global raw material manufacturers in India, but has also developed an excellent portfolio of capital equipment. It also represents some of India' s leading raw material manufacturers.
Main Strategy
To provide a vast and integrated product range is the main aim of the group's strategy - that of being the integrated supplier of the best quality products to the Indian tyre and rubber industry. The organization now represents leading global manufacturers like AKZO Nobel, Allied Signal, Bekaert, B.F. Goodrich, Comerio Ercole, DSM, Flexsys, Repsol, VMI, H W Wallace and many others in India.
This strategy of the group however, is not easy to implement. Nevertheless, with vision and dynamic leadership, the Malaneys, the group's principals, have succeeded where others would find it difficult to tread. Their success is especially commendable, because the industry has been through a very volatile period during this last decade.
Starting in the early 1990' s when India was almost bankrupt and imports were at a trickle, the group managed rapid growth in the mid 1990' s when the country began the process of liberalizing its economy. Now it is again managing successfully the "recession" and low cost competition from Far East countries.
Effective Management
This effective management of change has been done by a father and a son team that has all the ingredients of success. Mr. Vishnu Malaney, the group's founder brings to the fore expertise and experience, high credibility amongst the customers stemming from 40 years of personal dedication, commitment and performance, and a deep seated knowledge of the industry. His 17 years of experience with Bayer, and the subsequent 25 years of managing his own business, have ensured that this organization is guided smoothly through the numerous business cycles.
Mr. Ronil brings the energy of youth and modern management practices from over ten years of studying and working in Europe and the U.S., and a penchant for changing the organization to proactively face future challenges. His education at Brown University, where he was graduated with a B.Sc. in applied mathematics and economics, and subsequent work experience at A.T. Kearney, a global management consultancy, has clearly prepared him well for these challenges.
Excellent team
Notwithstanding the leadership they provide, the group' s success is also due to the fact that it has built an excellent team. In fact, the Malaneys are the first to recognize that without a strong and performance-oriented team, no amount of leadership will enable their organization to succeed. The core team of Mr. K.V. Setumadhavan, Mr. V.S. Bijur, Mr. R.S. Mahesh, Mr. G.S. Pingle, Mr. M. Pujar, Mr. K. Haridas, Mr. A.S. Pujari and Mr. K. Mascarenhas are veterans in their respective industry segments, and have all contributed significantly to the organization's leadership position.
To enable it to retain this edge over its competitors, the group recruits young intelligent and qualified personnel and continuously trains and coaches them. The group truly believes that outstanding performers must be developed and nurtured - they cannot just be hired. Thus the very strong emphasis on the job training. The group's flat organizational structure also enables it to easily identify good performers who are suitably rewarded.
To provide and sustain a high level of service and quick response time goals (24 hrs), the flat organizational structure is further organized into teams by end user segments. By design, the teams are small and led by at least a general manager who is ultimately responsible to provide service to his customers satisfactorily.
Customer service
Outstanding customer service is the cornerstone of the Malaneys business philosophy. Their religious drive to sustain and continuously improve high levels of service is embedded within all levels of their organization. Being a dedicated sales and marketing organization, the group truly believes that any new product and/or services must be driven by their customers' requirements itself. The tireless efforts of the entire sales team, to continuously update their knowledge in general, and particularly that of their customers, and the industry they serve, clearly reflects this high level of commitment.
The service platforms within the company are organized to support this strong customer focus. In addition to a strong customer oriented front line sales force, the group has also invested in its own in-house after sales technical service. Highly qualified personnel - plastics and rubber technologists and service engineers provide "on the spot" technical service.
The group has developed strong expertise in introducing new products. Its recent success with Perkalink 900, a state of the art anti-reversion agent is just one example of this. Other products whose successful introductions stand out are: VMI's range of machinery, testing equipment from Wallace, and raw materials such as steel cord from Bekaert, and polyester from Allied Signal Fibres.
The group's technical capabilities also include other value-added services such as joint products trials, advice to customers on their own product development, problem solving, and installation and servicing of instruments.
The field sales and technical forces are ably supported by a
well-trained and well-qualified operations team. The superior service culture and the group's commitment to excellence is clearly visible. Led by two managers, who have been with the group for over 15 years the team is a blend of experience and youth. They execute orders efficiently and promptly.
Modern Technology
The group has invested significantly in modern technology and in its overall infrastructure. The continuous investments in information technology have enabled it to respond rapidly. The group is now thinking how to further introduce automation in its various procedures, and in this includes evaluating various ERP vendors. With its headquarters in Mumbai and regional office in Chennai, and office due to start in New Delhi, the group is also located geographically close to its customers.
In addition to the continuity in top management, the company with approximately 45 people also has the necessary capacity to ensure that all business transactions are done smoothly. This gives stability to the organization which is a key differentiator.
Another key differentiator is the excellent relationship that the organization and its top men and other personnel enjoy with its customers. In fact, the organization has developed strong partnership with its customers industry-wide.
Another distinguishing feature of the group is that it is continuously able to sustain an overall leadership position in the industry. Mr. Vishnu Malaney's active association and life-long service to the rubber industry through the All India Rubber Industries Association is a notable feature. Its long term investment in introducing the state-of-the-art products to its customers and commitment to ensure successful acceptance of these products - a management philosophy in fact - is another factor. Its exemplary participation and contributions to world class conferences, that help bring all facets of the industry in India together is well-known to all in the industry.
The organization, however, is not resting on its laurels. Leveraging its strong service foundation, it is starting its own after sales service engineering department to support its sales of instruments. As it has acquired additional office space recently in its existing office built in Mumbai, the group is planning to start its own laboratory / testing centre as well.
Rapid expansion
The organization is rapidly expanding its product and service base to include a vast range of machinery. It now represents global leaders such as Colmec, Calemard, Comerio Ercole as well. The growth of the capital equipment business is its prime focus.
In order to have a bigger raw materials product portfolio, the company is also seeking to represent quality and competitive manufacturers of carbon black, and some synthetic rubbers. With the addition of these products, the group will be in a position to cater to almost all of its customers' requirements.
A clear and well thought-out strategy, strong accent on value addition, customer focus and the financial strength to rapidly implement its various programmes to achieve its overall objective of being the integrated supplier of choice to its various customers, have helped the organization to march ahead steadily. The drive of the Malaneys and their vast experience, proven track record and their deep knowledge of the industry will definitely help to continue its systematic growth in the future too.