Suresh Krishna believes that winning the respect of the customer comes first.Everything else follows

Suresh Krishna believes that winning the respect of the customer comes first. Everything else follows
Sampath Kumar Moorthy, president, Sundram Fasteners was recently in the China office of General Motors. He was there to win business for Sundram Fasteners's China plant, commissioned six months ago. He was planning to kick-off the meeting with a background presentation about his company. Just as he was getting started, a GM official interrupted him: "We know all about Sundram Fasteners. Don't waste your time with a corporate presentation. Let's talk business."

That is respect. About a decade and a half ago, when Suresh Krishna, chairman and managing director, set out to break into the international market for fasteners, he realised that he had to first earn respect from the customer before he could win business from them. Today, it would be safe to say that Sundram Fasteners has achieved that objective - in Shanghai, Detroit, Malaysia and, most recently, in Cramlington (near Newcastle), UK, where it has just acquired a forging plant. "When you talk about powder metal parts or fasteners, everybody in the US knows us. We don't have to introduce ourselves. Those days are gone," boasts the usually-modest Krishna.

No. 2 MICO M. Lakshminarayan, Joint MD

Sundram Fasteners has been one of the pioneers in the attempt to make India an auto-component production hub for global markets. In the early-90s, the company was among the first in India to sell to a large automotive company (radiator caps to GM). Now the company boasts of an impressive export figure of Rs 240 crore.

Three events helped Sundram Fasteners extend the respect it enjoys in the Indian market into the international arena - the setting up of a fastener plant in China, the acquisition of Cramlington Precision Forge, UK, and the buyout of Autolec Industries.

The real test was the Rs 12-crore acquisition of the the Cramlington precision forging unit of Dana Spicer Europe early this year. Even though the plant was making a highly specialised product (bevel gears), its very existence was at stake. Its only hope for survival was a significant expansion in order to achieve better economies of scale. But parent Dana was not interested in this line of business. It was considering two options - shut down the plant or relocate it to the Czech Republic.

No. 3 Bharat Forge Baba Kalyani, CMD

That was when Sundram Fasteners stepped in. It had plans to double the capacity of the plant and to use it as a beachhead to export its own products into Europe, but the demotivated employees wouldn't listen. "They were all in the shutting down mode. The challenge was to wrench them out of that frame of mind, and convince them that we are not going to shut down," recalls Krishna.

Once again, he was faced with the challenge of winning trust and respect. And once again, he succeeded in doing so. He has since convinced the employees about his plans, and the Cramlington plant is now expected to double its sales to Rs 50 crore in the next two to three years.
It's a rather simple philosophy that has helped Sundram Fasteners earn the respect of its stakeholders. "Respect arises out of fair dealings. Fair dealings form the foundation of partnership - a partnership consisting of the company, customers, vendors, employees, lenders, shareholders and the society. A fine balance among all the partners provides the platform for respect," says Krishna.

That philosophy will be challenged as the global manufactured outsourcing wave gains momentum. In an environment where US companies are very keen on sourcing from India, companies will need new skills and understanding to retain customers. "A deep understanding of issues like product liability and recalls, product design and development skills, and the ability to deliver constant cost reductions hold the key." Old themes like quality and delivery are taken for granted today.

There is a simple practice that Krishna has been following for the last forty years. He makes it a point to visit every company location and talk to all the employees at least four times a year. "Our employees know exactly what we are planning and doing, right from the China plant to the strategy that India is just one part of our manufacturing plan," says the chairman of Sundram Fasteners. His employees respect him for that effort.