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Enhancing production abilities with proven manufacturing platform
Source：International Metalworking News for Asia- August 2020
Date Published：8/12/2020 02:08:08 PM
By: Kathryn Gerardino-Elagio
We are in a period of rapid and accelerating change where acquisitions come in all shapes and sizes. Aside from introducing renewed thinking at all levels in the organisation, acquisitions can help businesses achieve their strategic goals more quickly, bringing new products and services, including innovations.
This was the case with Dormer Pramet’s acquisition of India-based Miranda Tools, a manufacturer of High-Speed Steel (HSS) and solid carbide cutting tools. The acquisition enhances Dormer Pramet’s production capabilities with a proven manufacturing platform and further strengthens the company’s round tools offer for the general engineering, automotive component manufacturing and MRO (Maintenance Repair Operation) industries.
To learn more about the acquisition, International Metalworking News for Asia interviewed Stefan Steenstrup, president of Dormer Pramet.
Stefan Steenstrup, President, Dormer Pramet
Established in 1945, Miranda Tools has built a strong reputation throughout India, as-well-as numerous export markets, and has experienced strong growth in recent years. The addition of their significant expertise in India will further enhance Dormer Pramet’s position as a leading global supplier of HSS solid round tools - an area of the market where the company continues to expand.
Stefan, said, “I am very pleased to have reached an agreement to acquire the business of Miranda Tools and look forward to welcoming them into the Dormer Pramet family. We see a lot of commonalities between the two companies, with an established distribution network, long-standing customer partnerships, and a focus on product quality and service.”
According to Dormer Pramet’s chief, the acquisition enhances the company’s product offering and facilitates an improved presence in key markets, such as India, China and South East Asia. It supports a vast array of small to medium-sized workshops, which rely heavily on HSS (High-Speed Steel) cutting tools. By expanding their manufacturing footprint to encompass North and South America, Europe and now Asia, they can better serve these markets.
He mentioned that they see a lot of commonalities between themselves and Miranda Tools. With both brands enjoying an established distribution network, long-standing customer partnerships, and a focus on product quality and service.
“Like ourselves, Miranda Tools is a well-known manufacturer of HSS and solid carbide cutting tools. Established in 1945, the company primarily supplies drills, milling cutters and taps to customers in India and around the world,” Stefan remarked.
Stefan stated, “The addition of our significant expertise in India will further enhance our position as a leading global supplier of HSS solid round tools - an area of the market where we continue to expand.”
He also assures that this acquisition helps put together a new team of experts with fresh perspectives and ideas and who are passionate about helping the business reach its goals.
“At present, we see this as business as usual for existing customers of Miranda Tools and Dormer Pramet. I would like to reassure them that the proposed acquisition will not impact on their ability to receive the products they need in the day-to-day running of their business,” Stefan explains.
Business plans in Asia
Dormer Pramet values the market in Asia very highly, remarks Stefan. “We believe our product offer for both round tools and indexables is ideally suited to the production environments across various countries,” he noted.
Stefan described, “The acquisition of Miranda Tools strengthens our position towards a “one-stop-shop” for various hole-making, threading, milling and turning applications. It will provide significant benefits to numerous production facilities across Asia.”
He added, “We are one of the fastest growing cutting tools manufacturer in India. For example, our Pramet and Dormer brands have built a good reputation within the country and our team is working hard to develop this further with a wide range of customers in segments such as, mould and die, railway, general engineering and heavy machining.”
“Building our brand is a big driver in establishing our position across Asia. We do that by hiring the best people we can, and making sure we provide the best products and services available. We work through distribution, but we do a lot of technical work at the end-user level, and that’s the way we drive our products to customers,” he revealed.
Although the plans to acquire Miranda Tools came at time of tumult in the global business industry caused by COVID-19, Stefan confirmed the pandemic did not impact their decision.
“The COVID-19 situation did not impact our decision to proceed with the acquisition. We are determined that it was even more necessary, as the deal fits very well with our long-term strategy,” he guaranteed.
As a final point
Bringing a product to market is no longer just about the item, it’s about the entire ecosystem. Creating a good user experience and a community of users that become brand ambassadors can make a difference.
For any acquisition to be successful, the leaders across the business need to set an example; being adaptive to change and demonstrating a willingness to embrace new business models.
The messages of this article are clear: provide customer value; improve the customer experience at every turn; build a community, not just a customer base; embrace change, be bold and occasionally disruptive, focus on service, and stick it all together to drive continuous improvement and operational excellence.