30 Minute Interview

'L&T's Entry has Transformed the Indian Technology Scenario'

Larsen & Toubro Limited was always looked upon as India's largest engineering and construction conglomerate with interests in IT, cement and electrical business. After identifying medical electronics as a potential growth area, it ventured into this avenue with the result of per annum growth of 30-35 per cent. Rohit Mehta, SBU Head, Medical Equipment & Systems, Electrical and Electronics Sytems, Larsen and Toubro Limited, speaks to Nayantara Som about its inception, its growth and its strong hold over US and European markets.Excerpts:

Rohit Mehta Head, Medical Equipment & Systems, Electrical and Electronics Sytems, L & T Limited

L&T's strength was its engineering and construction sectors. Why and how did it diversify into medical equipment and systems?

In 1988, L&T set up a task force to explore other areas for expansion. Medical electronics was identified as a growth area as there were no manufacturers for these products and this is where we could combine our existing strengths and bring out world-class medical products. In the early 1990s, L&T Medical collaborated with leading European firms - Kontron and ERBE, to start the manufacturing operations. Subsequently, it came out with products of its own technology from the R&D production facilities at Mysore campus. L&T Medical in a span of less than two decades, launched value-for-money products with performance on par with equipment from MNCs. Today, L&T Medical has maintained an average annual growth rate of around 30-35 per cent.

What is the strength behind L&T's wide network?

L&T Medical's wide reach - over 25 branch offices, 100 sales dealers and 70 service franchisees ensures prompt back up support at extremely affordable terms even in remotest areas of the country. L&T's IT-enabled regional service hubs, central service management and Customer Interaction Cells ensure 24x7 vigil and support.

What is L&T's contribution to medical equipment segment in India?

L&T's entry into the medical electronics field in 1988 was a major force, which radically transformed the Indian technology scenario by making contemporary medical equipment available to the people of India. The Indian medical fraternity got best value-fo- money products, that is, world-class, state-of-the-art medical equipment at an affordable total cost of ownership, for the entire life cycle of the product. To cite an instance, immediately after L&T Medical's entry, ultrasound unit prices, which were as high as Rs 6 lakh nosedived to below Rs 3 lakh.

Which quality standards are strictly followed at L&T ?

L&T Medical complies with ISO:9001 for general quality systems since 1993; ISO 13485, which is a specific compliance requirement in Europe, USA and many other countries. We are exporting to European countries since the last six years and to USA since the last two years. CE marking (or Conformance to European safety standards), which is mandatory for exports to Europe is followed by us. All the devices that we manufacture are CE-marked. The same devices are also sold to customers in India. We do not have different standards for customers in India and abroad. US FDA approval for eight of our products marketed in the US;ISO 14001 for ensuring our operations are environment-friendly. Like for instance, we have a water treatment plant for treatment of effluent water and the treated water is fed to the lawns and gardens thus conserving water, a scarce resource. We have a vermiculture plant where the kitchen waste (vegetarian in nature) is fed to the worms and the organic manure is used as fertiliser for our garden, thus avoiding use of chemical fertilisers. We have been doing this since the last ten years even when ISO 14001 did not exist.

What steps is L&T taking to focus on R&D?

Intensive technology development and product design, complement L&T Medical's wide manufacturing base. It designs and manufactures quality products that comply with international safety and performance standards. This is supplemented by the concept of concurrent engineering, which ensures cross-functional efforts from manufacturing and marketing at every stage of new product design.L&T Medical's dedicated team of engineers continuously evolve new designs and work tirelessly towards newer and better solutions. In addition, it has entered into collaborations with world-class research institutes for product development and technology assimilation, as a part of its on-going efforts to meet the challenges of tomorrow.

What latest technology and updated equipment is L&T focusing on now?

Mysore Campus has a state-of-the-art Electro-Magnetic Compatibility (EMC) test laboratory with facilities for Radiated Emission (RE) and Conducted Emission (CE) tests, set up on the international standard CISPER-16 guidelines. The software is developed in CMMI Level 5 certified processes.

Could you elaborate on the revenue from international sales of L&T this year and the largest international and regional market for L&T?

L&T Medical will end the current financial year with total export revenue which will be approximately 16 per cent of its domestic business. USA has been our largest market so far. Both the US and European markets are the most important markets and the focus territories for L&T Medical's business.

Any collaboration with companies and groups - international or national?

We represent two major product lines from world majors, that is defibrillators and advanced cardiac resuscitation systems from Zoll Medical Corporation - USA, and anesthesia delivery systems and ventilators from Avasarala Technologies Limited - India, as per world's most stringent quality standards. We have also rolled out product lines and models synergistic with our imaging and patient monitor businesses, that is medium end latest technology X-Ray systems and syringe pumps.

What is the present focus for L&T ?

For having special focus on healthcare solutions, L&T Medical has formed a separate Project Business Cell (PBC). PBC's mission is to provide complete healthcare solutions under one roof. It is updated with the latest technology products and services in the healthcare industry and works closely with users and suppliers for more coordinated and better results. It specialises in specialty ambulance business, telemedicine projects and Hospital turnkey Projects (Medical Equipment and support facilities, including ambulance furnishing, ICU, OT execution, encompassing pipelines and OT furniture and fixtures.

What are the future plans for L&T Medical ?

L&T recently unveiled the foundation plaques of the new manufacturing unit of medical equipment, sports complex and training centre at its Mysore campus. It has acquired additional 15 acres land for building additional capacities. The new facility will help expand the medical equipment business' products basket The enhanced medical equipment facility will have 1,00,000 sq feet space and enhance capacity by five times in the next five years. L&T will grow this business with a focus on international markets with critical healthcare products range that will include multi-parameter patient monitors with enhanced communication and networking features. The medical equipment business is getting ready to launch a range of world-class products in the patient monitoring system in the domestic market.

nayantara.som@expressindia.com