Sayeed Ahmed, CEO, Biesse in an interaction with Mary Janifha Evangeline. X, Editor of Asia Manufacturing Review magazine, shared his views on how manufacturers can shift from a linear to a fully circular production model without compromising profitability or product quality, the role regenerative design can play in transforming manufacturing processes to become truly sustainable and more. Sayeed Ahmed, the CEO of Biesse also serves as the Chairman of The Indo-Italian Chamber of Commerce and Industry (IICCI) Southern Region, Bengaluru. With a successful career spanning three decades, Sayeed is primarily responsible for creating and executing strategies to establish Biesse India as the premier manufacturing hub in the Asia-Pacific region and ensure its continued growth and success in the global market.
With more than 35 years of experience in the manufacturing sector, encompassing both engineering and FMCG, he has established Biesse's business operations in India. This includes setting up two manufacturing facilities and sales and service divisions nationwide. His efforts to significantly improve customer perception towards the quality, cost, and service of "Made In India" products have further optimized operational performance.
How can manufacturers shift from a linear to a fully circular production model without compromising profitability or product quality? What role can regenerative design play in transforming manufacturing processes to become truly sustainable?
Traditionally, most of the industries have operated within a linear economic model where resources are used for creating products which are discarded eventually as waste. However, there is a surge in a shift towards the circular economy, which focuses on reusing, recycling & reintroducing materials into the production cycle. This model not only conserves natural resources but also decreases environmental pollution which makes it increasingly appealing & viable across several industries.
For instance, reusable & recyclable packaging is gaining traction in the consumer goods segment. Brands are enhancing their market image while promoting sustainability by leveraging this trend, making it appealing to environmentally conscious customers. This shift is easier for manufacturers of consumer products, as customer acceptance of sustainable practices is increasing rapidly.
Transitioning to a circular economy for capital-intensive industries such as machinery & automobiles comprises innovative approaches like “product-as-a-service” models. Organizations retain ownership of products by rendering them for use and later refurbishing or reconditioning them for future uses. Examples include hiring or sharing equipment such as forklifts, cranes or automobiles which maximize utilization while minimizing waste.
Sharing economies also emerge, specifically in sectors such as textiles where standardized manufacturing processes enable efficient use of common facilities. For instance, entrepreneurs rent factories in Bangladesh for optimizing the usage of resources & execute orders efficiently. Similarly, hiring services for items which include furniture & automobiles has increased, rendering flexibility & decreasing resource wastage.
One of the key aspects of circular economies is adaptability. Products are now being designed to last indefinitely but to adapt. For instance, machinery can be refurbished with the latest technology while retaining the original structure which in turn would help in extending its lifecycle & reducing resource consumption. These practices are becoming standard, and with innovative business models, these can be implemented profitably in our country as well which would facilitate in fostering sustainability and economic efficiency as well.
How can circular economy principles be aligned with growth strategies in sectors where high resource consumption and waste are considered unavoidable? What economic incentives or policy shifts are necessary to make circular manufacturing more financially viable than traditional linear models?
Achieving a fully circular economy may not be feasible for all products. However, efforts can begin at the design phase for maximizing the reuse of components. Also, designers can focus on embedding parts which are commonly usable, reliable as well as capable of reintegration into the production process. For instance, once the lifecycle of products such as televisions or refrigerators ends, certain components of these can be salvaged & reused in new models and this will lead to waste reduction.
Another important consideration at the design stage is extending the product lifespan. Implementing durable designs will help in ensuring longer usage periods, and delaying the need for replacement. Furthermore, environmentally harmful materials which include non-recyclable plastics or asbestos should be alleviated from the production process and this will help in aligning the products with sustainability goals.
Manufacturing companies can also evaluate how many components can be recycled and they can also ensure the minimal usage of non-recyclable materials for engineered products & capital goods. Metals such as steel can be recycled and this in turn will help in decreasing the need for disposal in landfills. The ultimate goal is to create products with minimal environmental impact by design for reuse, recycling & safe disposal of materials.
Manufacturers should also take responsibility for the complete lifecycle of their products and not just until the sales phase. The shift from a “cradle-to-grave” approach to a “cradle-to-cradle” system emphasizes returning products to the production cycle or safely disposing of residual waste. This responsibility will be driven by societal expectations as well as potential legislation.
Manufacturers should control the complete product cycle – from design to disposal in this evolving framework as it ensures a sustainable process which helps in minimizing environmental harm while meeting societal & regulatory demands. This approach will redefine the industry standards for accountability & resource efficiency.
What strategies can manufacturers adopt to encourage collaboration across supply chains to achieve circular economy goals? How can digital technologies (e.g., blockchain, IoT) be leveraged to track, trace, and optimize resource flows within a circular manufacturing ecosystem?
Large manufacturers in the supply chain often possess the resources as well as financial power for adopting sustainable practices, however, smaller industries specifically suppliers of parts for automobiles, machinery as well as white goods would need significant support. The key challenges for smaller players include awareness, waste monitoring and innovation in adopting circular economy principles.
Training & awareness are crucial for supply chain participants for understanding and managing waste effectively. Suppliers should be equipped for ensuring that waste is either recycled or repurposed instead of polluting the environment. Also, encouraging innovation in alternative, sustainable materials is vital. For instance, replacing traditional materials with new, recyclable ones can decrease the environmental impact significantly.
Also, collaboration across the supply chain is becoming highly essential. OEMs can play a major role by supporting small-scale industries in innovation through technical guidance & resources. And, this collaboration can result in the development of durable recyclable parts which remain in the system longer, decreasing waste.
Emerging technologies such as IoT and Industry 4.0 will be instrumental in advancing circular economy practices. Also, IoT-enabled systems can track parts over the lifecycle of equipment, identifying those components which can be reused or recycled. Similarly, blockchain technology can facilitate transparency as well as efficiency by ensuring that the components are returned for reuse or recycling in a secure & traceable manner. These technologies help in enhancing digitization which is highly essential for sustainability efforts in the supply chain.
Significant progress has been made in packaging, with the widespread use of recycled materials. However, technological adaptation as well as collaborative innovation will be crucial for industries that are into manufacturing complex components. The entire supply chain can move towards a more sustainable and circular model by fostering these developments, ensuring long-term environmental & economic benefits.