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 Jul 03, 2025

How Process-Level Automation Contributes to Reducing Operational Costs in a Smart Factory

Smart manufacturing is no longer optional—it's essential for India's ambition to become a global manufacturing powerhouse. Dr. Sanjeev Srivastava of Delta Electronics India emphasizes the urgent need for process-level automation to drive efficiency, reduce costs, and empower India's 'Viksit Bharat' vision.

An efficient and profitable smart factory ecosystem

To emerge as a strong global manufacturing base, India must embrace smart manufacturing proactively, says Dr Sanjeev Srivastava.

With India solidifying its place as a global manufacturing hub, the concept of smart factories is not a futuristic idea but a necessity that the industry needs to embrace. At the core of this revolution is process-level automation as a key enabler for manufacturers to not only streamline operations and gain efficiencies but critically reduce operational costs. It is imperative to understand the key benefits that process-level advanced automation presents to an efficient and profitable smart factory ecosystem aligning with the nation's vision of a 'Viksit Bharat'.

Understanding process level automation: Key to intelligent manufacturing

Smart manufacturing is supported by process-level automation that enhances operations along the lengthy production life cycle. It ranges from raw materials and components supply to work-in-progress, inventory management to finished goods packaging. The technology behind this automation is broad and powerful, ranging across technology that includes Programmable Logic Controllers (PLCs), Supervisory Control and Data Acquisition (SCADA) systems, MES (Manufacturing Execution Systems), AI (Artificial Intelligence) and advanced robotic systems. These functionalities allow real-time control, macroscopic data acquisition, as well as immediate decision-making from the manufacturer’s end. This enables an unprecedented enhancement of operational efficiency and a significant reduction in costs.

Direct expense decreases: A benefit of process-level automation

Automation at the process level enables significant reductions in direct costs related to labour, energy, and materials. By automating mundane, repetitive, and laborious tasks such as routine testing, validation, and assembly, human workers are freed to focus on more complex, value-added activities like quality inspection, innovation, or research and development. Automatic control of equipment shut down in non-operational hours reduces unnecessary waste of energy and results in huge savings.

 Additionally, accurate operational performance attained with the aid of automation increases material utilisation minimises losses such as overstock or waste from spoilage or expiration by real-time tracing of raw material usages. Apart from cutting direct costs, automation at the process level substantially improves overall productivity and operational efficiency. A 2025 Smart Manufacturing Survey by Deloitte reported that 85% of 600 respondents feel their Smart Manufacturing initiatives will ‘drastically change’ the way they do business.

Indirect cost reductions: another advantage

Apart from direct cost saving, process-level automation offers enormous indirect benefits by increasing operational effectiveness and reducing costs. By identifying equipment wear and tear before unpredicted failure, IoT and sensor technologies help in predictive maintenance to reduce unscheduled downtime and prevent expensive emergency repairs. Additionally, automation helps in completing repetitive and consistent production processes that greatly reduces the scope for rework and any defects. Automated workflows also shorten production timelines and increase output by speeding up production cycles. This improvement supports lean inventory management and better demand forecasting, enhancing supply chain effectiveness and promoting overall company growth. All this combined results in better product quality and increased customer loyalty.

Informed decision-making: How leveraging real-time data helps

Large amounts of data produced by machines are used for real-time analytics to facilitate faster and more accurate decision-making. This helps workers function better and avoid hassles from otherwise slow manual data collection. It also helps in easily tracking important indicators of performance like energy use, machine availability, and production quantity.

Dr Sanjeev Srivastava
Dr Sanjeev Srivastava

Adapting to market demands via flexibility and customisation

Lastly, process automation delivers highly adaptable production settings that allow for easyadjustment to increasing or decreasing market needs. This inherent flexibility also enables highly customised products to be produced without significant cost uplift, a key asset in markets like electronics and automotive, where there is enormous product variety.

Way forward: India on the global map for competitive global manufacturing

To emerge as a strong global manufacturing base, India must embrace smart manufacturing proactively. By harnessing new technologies, we can not only drive economic growth and innovation but also upskill our workforce significantly. Process-level automation is now a strategic necessity for any manufacturer looking to get ahead. Manufacturers will have to see the technology as an investment that pays off handsomely in the long run in terms of efficiency, lower cost and greater market agility versus the upfront cost.

Reference links

1. https://community.nasscom.in/communities/manufacturing/future-smart-manufacturing 

2. https://www.dqindia.com/opinion/smart-manufacturing-how-ai-can-propel-india-to-the-top-of-the-global-production-chain-9013069 

Dr Sanjeev Srivastava is an industry veteran of more than 30 years, having worked on automation, energy, and industrial solutions. Currently serving as the Head of Automation Business at Delta Electronics India, he has played a critical role in driving growth and innovation since he joined the organisation in 2016. Prior to this, he held the position of Global Strategic Account Director, where he effectively managed customer relationships and achieved significant business growth.

With more than eight years at Delta Electronics India, Sanjeev has led the automation division, integrating innovative solutions into various industrial applications. He brings two decades of experience from ABB India, excelling in roles such as Group Account Manager, Strategic Account Manager, and Head of Channel Management. Sanjeev has demonstrated his expertise in building and managing channel networks, boasting a proven track record of increasing sales and market share.

His core competencies are strategic account management and business development, advanced automation solutions, channel management and network expansion, customer relationship management, as well as energy-efficient and sustainable technologies.

Sanjeev holds a Post Graduate Diploma in Business Administration (Marketing) from the International Management Institute in New Delhi and a Bachelor of Engineering (Electrical) from MS Ramaiah Institute of Technology, Bangalore University. He has furthered his professional development through programs such as the Executive Management Program in Strategic Innovation, Digital Marketing, and Business Analytics at IIT Delhi, the Young Managers Program at IIM Ahmedabad, and General Management Training at MDI Gurgaon.

In addition to his leadership role, Sanjeev serves as a visiting faculty member for B2B Marketing at prominent institutions, including IILM Gurgaon and the Great Lakes Institute of Energy Management & Research, where he is involved in curriculum development. He has also conducted training programs on channel management, contributing to industry-ready education for management trainees.

As the Head of Automation Business at Delta Electronics India, Sanjeev champions sustainable and energy-efficient automation solutions, demonstrating dynamic leadership and a capability to navigate complex challenges, which positions him as a thought leader in the automation industry.

Delta signs strategic renewable energy pact to accelerate net-zero vision

Delta Electronics India, a prominent player in energy and power management solutions in India, has signed a future-oriented Power Purchase Agreement (PPA) to significantly scale up its renewable energy usage, marking a major step toward decarbonising its operations. Facilitated by Ventus Energy Consultancy Private Limited, this strategic transition is projected to reduce Delta's carbon footprint by approximately 6979 metric tonnes annually.

Under the agreements, Delta will source a combined 9.6 million units of wind-generated power annually to power its manufacturing and operational facilities in Tamil Nadu. This transition is expected to significantly reduce the company's dependence on fossil fuel-based electricity and cut approximately 6,979 metric tons of carbon emissions annually, as per conservative industry estimates.

Benjamin Lin, President of Delta Electronics India, said, "At Delta, we believe in leading by example. Integrating renewable energy into our operations aligns our growth with India's climate goals and accelerates our global net-zero vision. Collaborations like these are key to building a resilient and responsible energy ecosystem."

The electricity will be sourced from wind farms located in Tirunelveli, Tuticorin, and Tiruppur, and supplied via TANGEDCO's grid under a 12-year agreement.

Delta's ESG initiatives are deeply embedded into its business operations. Delta's energy-efficient products enabled global electricity savings of over 45.5 billion kWh between 2010 and 2023—resulting in 23.84 million tons of CO₂ emissions avoided. In 2023 alone, the company achieved a 39% reduction in Scope 1 and 2 emissions compared to its 2021 baseline.

Mr Niranjan Nayak, Managing Director, Delta Electronics India, stated “Sustainability is central to Delta's purpose. These PPAs are more than transactions—they are part of a long-term strategy to decarbonise our operations and contribute meaningfully to India's green transition. They also reaffirm our commitments under global frameworks like RE100 and the Science Based Targets initiative (SBTi)."

Delta has also built 35 certified green buildings and operates two net-zero certified data centers globally. It continues to invest in net-zero factories, smart grids, energy storage, and renewable integration, particularly in its Indian operations.

By collaborating with Ventus Energy Consultancy. Delta is promoting a cross-industry model for renewable energy partnerships. The move supports India's national commitment to 500 GW of non-fossil fuel-based power capacity by 2030 and the broader transition toward decentralized, sustainable energy systems.

Ms Rachna Kango, Senior Director – ESG & Strategic Marketing, Delta Electronics India, stated, "Delta is proud to partner with forward-looking enterprises like Ventus Energy Consultancy to acceleratethe  clean energy transition. These collaborations reflect our belief in inclusive, stakeholder-driven sustainability and demonstrate how ESG goals can be met through innovative and region-specific energy solutions."

P Vijayabaskaran, Director, Ventus Energy Consultancy, said, "With over 15 years of experience in renewable energy and a portfolio managing 750+ MW of wind and solar assets across Tamil Nadu, Ventus Energy Consultancy is proud to support Delta Electronics in its journey toward industrial decarbonization. As Delta's renewable energy demand grows, we are committed to enabling this scale-up through strategic power procurement and regulatory alignment."

Delta's roadmap includes expanding renewable sourcing across its Indian facilities, exploring smart grid innovations, and implementing real-time energy monitoring powered by Delta's own automation and IoT technologies. With 81,000+ employees, 73 R&D centres, and 55 manufacturing sites globally, Delta continues to lead by embedding sustainability into its growth strategy. This collaboration strengthens Delta's RE100 pathway while reinforcing Ventus's role as a trusted sustainability partner in India's energy transition.


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