With a global presence spanning 18 countries, Daiichi Jitsugyo India Pvt Ltd (DJK), has been making waves in the electronics manufacturing industry. In a recent interview, Rahul Chopra and Sharad Bhowmick from EFY sat down with Shigenori Yuki, the Managing Director of DJK India, to delve into the strategies employed by DJK to navigate this dynamic landscape, tackle market fluctuations, and address customer demands. Furthermore, Yuki shares insights into preferred manufacturing equipment in the Indian market, challenges, and advancements in electronics manufacturing
Q. Are you primarily engaged in equipment reselling or electronic equipment manufacturing? How would you define DJK’s role today?
A. DJK operates across six business segments, one of which is electronics. Currently, approximately 30% of Panasonic’s chip mounter sales are attributed to DJK. In addition to our partnership with Panasonic, we also have our own manufacturing capabilities. We have exposure to the Chinese market, Southeast Asian market, US market, the European markets, and the Indian market.
Q. Given Panasonic’s direct presence in certain countries, could you clarify if DJK is their exclusive distributor or if there are other distributors across various regions?
A. While we collaborate with Panasonic through various channels, there are other distributors in different regions as well. DJK maintains its unique position in the market by establishing subsidiaries in various countries, allowing us to provide direct engineering and sales support to our customers.
Q. Could you elaborate on DJK’s unique strengths and the strategies you employ to maintain your dealership relationships?
A. DJK’s key strength lies in our global customer base, which is continuously expanding. As mentioned before, we have established subsidiaries in multiple countries, enabling us to offer direct engineering and sales support to our customers. We have engineers located in different regions who can assist customers on-site. This combination of technical expertise and personalised support has been instrumental in maintaining our dealership relationships.
Q. How long has DJK been in India? Could you provide insights into DJK’s journey in India since its establishment and the growth trajectory you’ve observed?
A. DJK India was established in 2006, primarily serving Samsung during their mobile phone manufacturing through knockdown operations. Since then, we’ve experienced significant growth, with the number of customers in the electronics sector increasing from 2-3 in 2016 to 68 in 2017. Despite the challenges posed by Covid-19, our commitment to supporting customers remains unwavering.
Q. What advice would you offer to global customers considering investment in India?
I strongly recommend considering an investment in India today. The Indian economy is expanding, and the government’s initiatives have significantly improved infrastructure. This creates a favourable environment for establishing factories and manufacturing products in India.
Q. Could you pinpoint regions in India with high demand for your products and services?
A. DJK currently operates in New Delhi, Bangalore, Ahmedabad (Gujarat), and is establishing a new office in Chennai. Regions like Andhra Pradesh and Tamil Nadu are also experiencing heightened interest due to government initiatives promoting investment. Delhi and Chennai, in particular, are noteworthy for their growing customer interest.
Q. Do you exclusively deal in new equipment, or do you also offer used equipment in the Indian market?
A. DJK offers both new and used equipment in India. We have a market for used equipment in Southeast Asia and Japan as well While there was a preference for used machines in the past, the Indian market has shifted towards new equipment, often equipped with IoT features that can reduce labour costs.
Q. How has the adoption of IoT technology been received in India, and how does DJK contribute to its implementation?
A. That’s an interesting question. The adoption of IoT technology in the Indian market has been nothing short of remarkable. Businesses and industries have shown keen interest in harnessing the potential of IoT and machine-to-machine communication. They recognise the value of IoT, even in a market where labour costs are competitive. DJK India, with its finger on the pulse of industry trends, has been a proactive contributor to the IoT landscape. We have consistently played a pivotal role in ushering in the latest IoT technologies to our customers. The response from our customers to our IoT offerings has been overwhelmingly positive.
Q. Do you also help in training their team members?
A. Yes, we have a technical centre in Noida where we provide hands-on training to customer teams, explaining machine operation and architecture. Our aim is to empower customers with the knowledge they need. At times, we have five to ten people from a customer’s team come to our technology centre and we give them hands-on training on the machines and explain the architecture to them.
Q. In addition to Panasonic chip mounters, could you highlight a few other popular products or brands that DJK offers?
A. The Panasonic chip mounter is our number one product. Next in line is the Keysight ICT and FCT equipment. We also have the board handling unit, SPI (solder paste inspection) machine, automatic optical inspection (AOI) machine, reflow oven and printer. We cater to customers across the spectrum, from high-volume to low-volume production.
Q. Can DJK accommodate customers who primarily focus on prototype-level production, and do you have equipment tailored to their needs?
A. Yes, we do. Some customers specifically want to focus on prototype-level production, and we can provide equipment that aligns with their requirements. We work closely with suppliers to address these specific needs.
Q. What are some common misconceptions that people have, especially regarding chip shooters and other equipment?
A. I often attend joint meetings with executives and top management of organisations. Often, there’s a misconception that CPH (Chips Per Hour) is solely about price. I always emphasise the key point that performance is equally crucial for CPH (chips per hour). It’s essential not to overlook performance aspects when considering these machines.
A. How do you explain this to them, especially to leaders who may focus solely on the price?
Q. We emphasise performance and value through the material and information we provide. While price is a consideration, low price without adequate performance doesn’t align with our goal of supporting our customers’ production needs effectively. We have global key customers who understand this point. We want to support our customers’ production, so we emphasise the importance of performance and the value we provide through our products and after-sales support. This is a key factor for us.
Q. What does production support involve, and how does DJK assist customers in optimising their production processes?
A. Production support encompasses helping customers optimise their production processes, reduce downtime, and minimise changeover time to enhance overall equipment efficiency (OEE) and maximise productivity. It’s a key focus for our customers, and we provide ongoing assistance. It’s an integral part of our company’s approach.
Q. Do you also help customers in reducing wastage?
A. Absolutely, assisting our customers in reducing wastage is a key aspect of our commitment to optimising their manufacturing processes. We understand that every manufacturing operation is unique, and wastage concerns can vary significantly from one customer to another. That’s why we offer tailored technical assistance. At DJK, our approach to wastage reduction extends beyond mere waste minimisation. By implementing efficient solutions and leveraging technology, we contribute to the overall productivity enhancement of our customers’ manufacturing operations.
Q. With the advancements in technology, such as artificial intelligence, are there machines that can detect counterfeit components and perform inspections?
A. Yes, this technology is coming to India as well. We leverage technological advancements to the benefit of our customers. AI can play a vital role in detecting counterfeit components, thus preventing substandard materials from entering the production process. Many of our customers are using AI to maximise productivity. Panasonic, for example, is already utilising these capabilities. It’s an exciting development.
Q. What future technologies do you foresee, both globally and in Japan, that will impact the manufacturing industry?
A. Yes, I believe Industry 4.0, IoT, and M2M (machine-to-machine) technologies are significant trends. Manufacturing processes will continue to shift towards adopting more advanced technologies. Automation and the use of robots will likely increase, even replacing certain manual tasks. Our headquarter is already exploring and introducing these technologies to customers.
Q. Have robots been deployed in Indian manufacturing, and how are they utilised?
A. Yes, robots are being employed in the Indian automotive sector for specific processes, although manual labour still dominates in some areas. Automation is gradually making inroads to enhance productivity.
Q. So, manual labour is still predominant in India?
A. While manual labour remains prevalent in many areas of Indian manufacturing, we are witnessing notable advancements in automation, resulting in substantial productivity enhancements. Allow me to share an interesting example: In a particular manufacturing scenario, where operations ran 24/7, operators faced the demanding task of conducting changeovers during night shifts. This predicament resulted in a notable 30% drop in productivity. However, the adoption of automated specifications and the integration of robotic solutions brought about a transformative reduction in changeover time, resulting in a remarkable surge in productivity.
Q. Do you have plans in place for potential partners seeking collaboration?
A. Yes, we have an open-door policy when it comes to partnering with distributors in India. We firmly believe that forging multiple partnerships will not only bolster our presence but also significantly contribute to our growth ambitions.
Q. What are your growth plans for the next five years?
A. Our ambitious goal is to achieve five times the sales revenue of the current year. To realise this vision, we are strategically planning to establish satellite offices in various countries and regions. These offices will be equipped with dedicated sales staff, skilled engineers, and adept site managers, all working collaboratively to drive our growth agenda.
