Mavag AG has been manufacturing high-value stainless steel plants and equipment for the pharma and chemicals sectors from its base in Neunkirch, near Schaffhausen, since the 1990’s. Applications include, for example, the separation of liquids and solids in the manufacture of medicines. In 2007, the business was taken over by the Indian company GMM Pfaudler Ltd., owned by Ashok Patel, who initiated Mavag AG‘s development from industrial company to advanced manufacturing business. New products were introduced, existing ones developed and the company which once focussed on Germany, Austria and Switzerland now exports around the world.

Excellent strategic location

The reason the Indian parent company has always retained its Swiss operation in Schaffhausen is obvious, as Ashok Patel explains. «Neunkirch is close to Basel, which is home to major clients such as Roche and Novartis, but our cost-base here is much lower than in Basel or Zurich», he sets out. Alongside proximity to Basel, being based a stone’s throw away from Zurich international airport is also a significant benefit for a company with such a large international client base. Whilst it’s not always easy to recruit skilled staff, due to the buoyant economy, once you hire someone, they tend to stay and some have been with the business for decades. «And the most striking thing is that Schaffhausen embodies everything you associate with Swiss quality – and that’s a really strong selling point all around the world. And that’s why we are absolutely clear that we will be staying here», explains Tarak Patel, Ashok Patel’s son and CEO of GMM Pfaudler Ltd since 2015.

Close ties with India

All of Mavag’s products used to be manufactured end-to-end in Neunkirch, whereas nowadays a significant proportion is produced in India. Processes requiring a higher-level of manpower are handled by the GMM-Pfaudler-works in India, Tarak Patel outlines. «Work which needs input from highly-skilled engineers is carried out here in the Canton of Schaffhausen», he underlines. To ensure products manufactured in India meet the exacting quality standards required by Mavag, Indian welders regularly travel to Switzerland to hone their skills, Beat Hüsler, CEO at Mavag AG, explains.

Mavag AG’s success and the growing order book has meant increasing demand for staff in the Indian operation. To help address this, Ashok Patel simply decided to export the Swiss approach to skills development to India. «Now we train 20 apprentices every year», Ashok Patel says. The trainees use Swiss teaching materials and the relevant examiners are flown in to assess trainees’ skills at the end of the programme and ensure they meet Swiss standards. «When we were setting up this training programme, the Economic Promotion Team in the Canton of Schaffhausen provided a lot of support and introduced us to contacts who could help us», Ashok Patel adds.

All eyes on the future

The transformation of Mavag AG into a high-tech, advanced manufacturing business has been very successful, Hüsler explains. «We have developed new markets and have taken market share away from international competitors», he sums up. «The result is that we are now slowly getting close to the limits of our capacity in Schaffhausen», Tarak Patel is delighted to announce. In 2018 we are planning acquisitions which will further strengthen our positioning in the global marketplace – and at the same time we are also planning to expand our base here in Schaffhausen, Tarak Patel emphasises.