Fokker Elmo benefits from factory in India: “Our staff in India is better educated and cheaper than in China.”
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A few years ago, Fokker Elmo opted to spread the risk: no factory expansion in China, but a new factory in India. “In India we did not only find a large supply of better educated people, but also lower labor costs than in China,” says Maarten Durville, director of the Indian production hub of the Dutch manufacturer of wiring systems for aircraft.
New Fokker Elmo factory under construction
“If you have the luxury to spread risk, then you should do so,” Maarten explains. “We would really be in a difficult position now if we had only focused on China.” The Fokker Elmo factory in China had to close several times during the pandemic. According to Maarten, the aviation company’s other factories could not immediately absorb that blow. “But it makes you less vulnerable as a producer if you are located in several places around the world. In addition, India offers us opportunities that we do not have in China.”
India’s aviation sector is growing rapidly. Not only the commercial sector, but also the defence arsenal is being expanded considerably. “By opening a factory in India, we offer our customers an interesting combination: good products at a competitive price and the opportunity to make a deal with the Indian government.” There has been speculation for some time about the possible purchase of Boeing’s Super Hornet Fighter by the Indian government. “And they want something in return for such a large purchase. Boeing can say: ‘Look, we build in India via Fokker Elmo, so we also create jobs in India. That makes us an extra attractive partner for Boeing.”
Local support
The factory in India has been operational for a few years now, but it did experience some start-up problems. “We had two major delays, one was internal and the other one had to do with obtaining permits. That takes an incredibly long time in India.” Maarten had support from an Indian project manager during the set-up and despite the fact that Fokker Elmo has a lot of knowledge about starting a factory abroad, that help was desperately needed. “I couldn’t have done it without him. It was all so complicated: from property registration to obtaining the license to operate. Indian bureaucracy is extremely strict.”
But an Indian project manager alone was not enough to get everything up and running. “We work with local accountants for all corporate reporting and we have Indian consultants in our team to recruit the right employees.” Maarten currently manages around 40 people, which should increase to 800 in about five years. And they have to be able to participate in the hybrid, international corporate culture that Maarten is shaping within the company. “I want to retain the Indian ambition and enthusiasm, but I am replacing the hierarchy with Dutch openness, so that everyone can freely contribute their ideas and dare to express criticism.”
Corporate culture in India
Maarten cultivates this openness in various ways. For example, he holds a monthly session with the management in which the values of Fokker Elmo are discussed. Everyone who participates must then give good and bad examples of the open corporate culture. “I personally think the introduction of our joint lunch is a nice example,” says Maarten. “When I started, I suggested that we all have lunch together, at a long table. So the managers, engineers, operators, all mixed together and next to each other. That is not customary in India at all and I received very different reactions.” It was mainly his young employees, under 35, who thought it was a great idea. The more senior employees had to get used to this Dutch initiative. “And then you had the group that immediately said: ‘We will get the cleaners!’. Not to eat with them, but to straighten the tables. Then I explained to them that we could easily do that ourselves.”
Maarten is very positive about the quality of his staff. “I heard a lot of rumors before I started working in India. There would be a lack of knowledge and dedication among employees, but I see the opposite. They dare to take ownership of their successes, but also of their mistakes. I hardly encounter that outside my team in India.” Maarten regularly sees this problem in his collaboration with local parties and contractors. “They often give you the answer you want to hear. For example, during the construction of the factory, I was often told by contractors that a certain task would take another three weeks, but in reality it took six. If they told me the truth, I could have come up with a solution, but the delay was being covered up. Fortunately, my team has unlearned that.”
Recruiting talent in India
That team is therefore recruited with the utmost care by the local HR consultants. “We do a lot of campus recruitment. We try to get as many women as possible to come to us for an interview. It remains a tough call, especially if you are looking for women with a technical background, but we currently have a few very good ones in our team. Of course, we hope they will stay with us when they get married.” Maarten hopes that the good employment conditions that Fokker Elmo offers will keep them on board. But the factory has also submitted a subsidy application to the regional government. “We are trying to get a subsidy with which we can train more women within the company and offer them work, but it is still unclear when we can start with that. The process requires time.”
It was not possible to simply submit a few forms to let Fokker Elmo compete for the regional subsidy. “I have really learned that you have to go for it. The best thing is actually not to make an appointment at all, but just to walk into a regional ministry and see if you can meet the person in charge on the spot. That has brought me a lot so far, that personal contact opens doors that would otherwise remain closed. It was not for nothing that my project manager said to me: ‘Maarten, a no is not the end’.”
