Mr. Lucky Dhiman , CEO of Vishwakarma Machines talks about his company and his journey as an entrepreneur during candid discussion with us
Tell us about the company and its ideology?
The company, established in 1980, began its journey with manual pantograph and later moved to CNC machines. We used the best quality equipment for our machines so as to provide our customers with machines that are low maintenance and do not require frequent service. The products we use are from some of the best companies like controllers from Delta, spindles from Hitaco and Shimpo gearbox from Japan. During the manufacturing of our machines, the core machines used as well are from Amada.
How did you pave your path in this industry?
The company was started by my father and my uncle. They began working on manual pantograph machines. Though, they weren’t well educated, they had vast knowledge about mechanics. Everything I know today, I learnt by observing them at work. We later introduced automated system and then moved to software-based system.
My father’s knowledge about mechanics combined with automation and the latest softwares has helped us create efficient machines.
From our humble beginning, we have now moved onto CNC routers, CNC bearings, lathe and the project we are working on right now is CNC metal laser cutting machine.
As you are aware, there are quite a few manufacturers of CNC metal laser cutting machine and most people import these machines from China. How do you stay afloat among so many competitors?
Since the machines and automation we use in our factory are of the best quality, the products produced are also the best. They require very low maintenance which is our USP.
What exciting new products are you planning to launch in the market?
We are working hard on the metal laser cutting machine.
Are you expecting any changes in this industry?
I think the taxes that we’ve been paying should be reduced in the future as regular people are unable to buy the products. How can you expect these people who don’t have enough money to buy a machine to pay lakhs on taxes.
What’s the percentage of tax you charge on your machines?
We charge 18% on taxes from our customers
Did you gain anything from the GST implementation?
I believe we did not gain much from the implementation of GST. The government says manufacturers can gain from input credit but people who buy the machines wouldn’t have taken GST into consideration. Just think about a regular person who buys these machines and then has to buy raw materials as well. The percentage of tax would be so high.
Do you have any expectations from the government?
According to me, the percentage of taxes on machines should be 5%
From18% to 5%?
Yes. If this happens, people would pay the taxes and also buy the bills. Right now, 18% tax on one lakh is 18000 rupees. For people who get a refund, it doesn’t matter but people who don’t even have GST, how would they pay?
The implementation of GST has not been easy on everybody. Nowadays, the accountants charge a heavy sum. People who buy machines make around 15000 or maybe 50000 a month. To top it off, he/she has to pay the accountant and with so much paperwork, how do you expect him/her to stabilise?
I think for a person to grow in this industry, the paperwork should be less and the process should be made easy. Otherwise, people would fail miserably running around government offices with no time to do their actual jobs. Reducing the taxes would make the process easy and everyone would be able to pay the bills and the taxes.
Any message for our eager readers?
Whatever I have said, I hope your readers take it into consideration. We need to be able to compete with other countries. Like China, we are a hugely populated nation but unlike us, they have good policies. If you order an item from China, the delivery time is short and they are always well-stocked. But if someone places an order for 50 machines in India, the manufacturer might not have enough stock. He would have trouble with taxes and to be honest, we don’t have a lot of manufacturers to begin with. The sad part is, we, as a nation, are unable to produce motors or controllers. People go to other countries to manufacture them since we don’t provide them with enough facilities or payments.
According to you, how can we compete with China?
To begin with, we would have to reduce the rate of taxes on our machines so as to increase the buyers. This way, a small-time manufacturer can manufacture, stock the product and distribute it into the market with ease. Also, the labour issues need to be taken into consideration. Most labourers in India are not skilled. So, one needs to train them well so they understand the machinery. But the problem is, once they learn, they usually quit. A company invests so much into training a labour without reaping any benefits when they leave.
In my personal opinion, there should be a system where before joining a company, an employee needs to get an NOC from his previous job. It helps us know if the company let him go or he quit out of his own accord. If someone refuses to present an NOC, he should not be hired.
