In the last nine decades, Miba has developed and manufactured functionally-critical components across the entire energy value chain. It continues to do so serving a variety of industry segments including that of automotive, aviation, and marine. F. Peter Mitterbauer, Chairman, Miba AG was in Pune, India recently to oversee the opening of their engineering and IT center, and decided to share with N. Balasubramanian Miba’s India plans, future expansion plans and growth strategy. Here is the report.
Soon to celebrate its centenary year, Miba AG has come a long way since its inception. Founded in 1927 by the then soon-to-be-22-year-old Franz Mitterbauer who took over the metalworking shop he was apprenticing at in Upper Austria and set up what 9 decades later would be molded into an international company that manufactures functionally-critical components for automotive and other industries.
F. Peter Mitterbauer, Chairman, Miba AG shares: “My grandfather worked at a metalworking shop that dealt in spare parts for engine repairs. But post World War II, he could not find certain spare parts in the market. And that drove him to educate himself about manufacturing engine bearings. Decades later in 1960s, we entered the powder metal business to make components mainly for the automotive industry. Then we entered friction materials business in 1975.”
Today, Peter represents the third generation in the family business and is focused on growing and expanding the business into specific engineered components across many market segments.
Innovation In Motion
Miba engineers and manufactures technologically key components. And the company is a long-term player in the markets they are in. With a 7400-member strong team spread across the globe, Miba consistently works towards designing and manufacturing products that define their philosophy – ‘Innovation in Motion’.
Peter explains: “Our USP is that we bring in predictability that only a long-term partner can offer and we also bring in financial stability which our stakeholders, everywhere, appreciate. This gives us the freedom to look at mid- to long-term business in any geography we are in.”
Miba has always believed in resolving customers pain points by innovating its products. Their technology leadership is what has given them the exponential growth over so many decades.
He says: “We want to be in our ‘customer’s kitchen’ so to say. We understand their problems and to know what they need solved by offering our knowhow to give them ideal designs, and ultimately manufacture quality products as per their expectations. We are good at innovation and we have earned our technology leadership because we work closely with customers asking questions, and understanding their problems.”
Success Strategy Driving Exponential Growth
Though Miba’s roots are in Austria, the company has footprints spread around the world. Even though Europe comprises Miba’s main market, the company has achieved significant expansion in Asia – mainly India and China – and the US, with a touch in Brazil.
Peter reiterates: “Our philosophy is local-to-local, which means we manufacture in the region for the region, starting with engineering support. We try to ensure local content in the engineering processes, and we cater to our customers’ need for us to be close to where they are. We believe that this philosophy will hold true more so now than before as the world advances despite all the vulnerabilities thrown its way – be it the chip crisis or conflict between Russia and Ukraine. We believe in our business model making us a strong and stable partner.”
Technology Aimed At Cleaner Planet
Miba’s success strategy is two-fold – first, their advanced key components that are meant to serve their customers’ applications including that of battery electric vehicle components; and second, Miba’s ambition to become CO2 neutral by 2040 by using renewable energies in their production processes. A case in point is their plant in Pune now boasts of solar panels in alignment with this thought process.
Peter elaborates on newer forays of business: “We aim to develop and produce components for our customer’s applications across the whole energy value chain – meaning for the efficient generation, transmission, storage and use of energy. We do this for many industries like wind energy, automotive, farming and construction machinery or aviation. For instance, we make gearboxes and brakes for invertors that are used in wind turbines, solar and hydro power mechanisms. Our power electronics division manufactures resistors and other components for energy transmission, and for the energy storage segment, we are looking at batteries and have acquired shares in a battery-manufacturing company which makes complete systems. We are also working on the thermal management aspect of the batteries and have innovative products to offer to the market.”
Electromobility is another area which Miba has is keen on. As per Peter, e-mobility will get adopted by passenger cars the fastest.
He adds: “We believe in battery electric vehicles. Though from a business perspective, we believe that IC engines will continue to offer a huge opportunity despite e-mobility solutions becoming popular. We have a wide portfolio of products for ICs and we continuously improve on them to economize fuel consumption.”
Milestones On The Horizon
Having almost doubled their sales in the last decade, Miba has its sights set on their next milestone to touch Euros 1.5 billion mark in 2027, their centenary year.
Peter explains: “Our target in the next five years is more to do with being available to our customers seeking technologies. Miba has always been big on our entrepreneurial spirit where we seize opportunities, and on that basis enter different geographies through organic growth and also with acquisitions. This will continue to be our focus. Down the years, we may look at African and Southeast Asian markets too but right now we are taking everything one step at a time while ensuring that each step is a solid step.”
India – Strong Market for Miba
Today, Miba is keenly focusing on further global expansion in a sustainable fashion – be it in terms of mergers and acquisitions or by entering new markets and new product categories. And that includes extending its India footprint.
Peter says: “We have been serving the Indian market for about 20 years now. It started with ceramic clutch buttons for the truck industry which were exported initially. But now with the Make in India initiative, we have grabbed the opportunity to set up our operations here. Today we make friction components in our Pune site. Then we have acquired shares in a company in Pune that makes powder metal components mainly for the automotive industry. Also, we have established an Engineering and IT center where we have a strong team of about 100 with expertise in SAP, AI, and engineering, to support all Miba operations on a global scale.”
Miba is admired for its ‘freedom to perform’ concept by its work force and that is the ‘entrepreneurial spirit we vouch for’, as per Peter.
Challenges As Stepping Stones
Be it the chip shortage, COVID-19 pandemic or the conflict between Russia and Ukraine in recent times – challenges sometimes are unprecedented wreaking havoc on businesses on a global scale. But Miba, with its growing global footprint, is ably navigating them.
Peter tells us how: “Geopolitical and pandemic challenges are difficult to foresee. Miba has always striven to be financially independent which gives us immunity against market fluctuations, to a large extent. Another point is that we strongly believe in local-to-local business model. We source raw material locally whenever feasible, and work closely with regional customers which enables us to add value. This makes us more independent of different challenges even if they are unprecedented.”
Another way Miba ensures robust growth is their innovative nature backed by strong R&D. And this is why Miba is able to handle existing and new potential markets, conventional and alternate mobility solutions, besides venturing into new geographies with elan. To top it all, Miba is backed by 95 years of technological excellence which is being further nurtured to resolve customer pain points across the world.