is a market with huge potentials - Joseph W Marotta
Joseph W Marotta, General Manager, World Operations, Lords,
was one of the thousands distinguished delegates, who attended
the three day long India Rubber Expo in Mumbai. Mumbaibest took
this opportunity to speak to the representative from USA and jotted
his views about the changes that are taking place in the Indian
Economy, and India's role in the Global Economy.
Lords, one of the oldest rubber company, was established 82
years ago. Where you see it today, and its role in Globalization?
The Company grew as explorations into rubber-metal assemblies led
research into elastomers and the chemistry of bonding. These pursuits
pioneered innovations in adhesives, coatings, energy control motion
accommodation, noise control, materials and more. Today world-wide,
Lord Corporation employs over 2,100 people and it remains privately
held. It is headquarters in Cary, N C near Research Triangle Park,
on the Lord campus where the Thomas Lord Research and Development
Center and a Process Development Center are also located.
To keep up our pace with the speed of globalization, we also believe
in expanding our activities. Today Lord has manufacturing in 4 states
and in 5 countries. Our major business units are Mechanical Products
Division, Chemical Products Division and Materials Division. Global
customers recognise our preeminent position in materials, surface
science, electromechanical dynamic systems, and chemical syntheses
and polymerisation. We apply these core technologies to the development
of an array of custom vibration, shock, noise and motion control
products, a variety of speciality adhesives and coatings and magnetorheological
fluids and their integration into controllable devices. We've earned
this reputation because we're technology driven.
You also have a manufacturing unit in India. What is the reason
behind establishing a unit in Maharashtra ?
The world is witnessing the emergence of India as a manufacturing
country. Technically, Indians are well equipped. So in the hope
of opening up a bigger market for our products, we made a joint
venture in India. One thing we should understand is that, produced
goods can be marketed only if the quality can stand all the test.
In the beginning it is easy to set up a unit with less investment
in a country like India, but in the long run it turns out to be
the same as we can never compromise on the quality which has to
be world class. India has developed in almost all sectors, but quality
is still not upto the mark, to meet the challenges of the marketplace.
Products that are manufactured in India are they exported to
other countries ?
export of rubber manufactured in the Indian Unit is restricted to
neighbouring countries, Sri Lanka and Pakistan. In coming years,
depending on the demand of rubber and rubber related products we
will start exporting to other countries, if necessary. India has
such a big consumer base, that, major part of the production is
consumed internally. Today the country has emerged as one of the
prime consumers and producer of rubber.
Today, major part of the world market is flooded with Chinese
goods. Consumer are getting desirable products at throw away prices.
What measures are taken up by Lords in order to save itself from
the cheap dumping ?
Today China is in a position to provide such low rate products
to the world because of its low tax rates and open industrial policies.
Keeping in mind the cost of manufacturing product in China, which
is very low, we have also started our own manufacturing unit at
Where do you think India today stands in the race of Globalization
India is emerging as one of the front-runner in every sector of
development. It is one of the fast growing economies. It is a virgin
market for any investor. The domestic consumption of the country
is going to increase tremendously as the economy grows, purchasing
power of the people will increase accordingly. All foreign companies
are waiting for an opportunity to invest in India, and in coming
years will see the increase in that rate of entries.
How do you analyse the small timers in the Indian Rubber Industry
It is amazing to notice that in a country like India, one of the
major industry, rubber industry, still runs in bits and pieces.
In developed country we have less companies with more demands, and
here its the other way around. It will take some time to consolidate
all such small timers in India, and in the coming years we are looking
forward for mergers and acquisitions.