Sougandh K.M., Country Manager of India, Universal Robots

17 Aug 2022 , 09:32 AM

Help us understand the business model of Universal Robots

Universal Robots are the manufacturer of collaborative robots or cobots. Their cobots are easy to use, economical and versatile which makes industrial automation easy and accessible for businesses of all sizes. With the help of cobots, businesses can easily automate and streamline their industrial processes. The cobots made by the company are safe to be used alongside humans without any safety fencing or caging.

Universal Robots keeps the safety of the workforce at the forefront. Hence, the cobots manufactured by UR go through various assessment measures to ensure the safety of the workforce and then only they are deemed fit for deployment in factories.

Collaborative robots are deployed in a variety of industrial activities. Cobots carry out risky, dull, and repetitive operations including packing, palletising, weight lifting, machine tending, etc. Cobots relieve workers from performing tedious, enormous and dirty tasks so that they can focus on more valued tasks.

Cobots may operate around-the-clock, increasing the production facility’s productivity and efficiency. Additionally, cobots operate more quickly than humans and eliminate errors made by humans. They save manufacturing costs, cut waste, and improve product quality.

While you had made revenue of $311 mn in 2021, how do the operating and net profit margins look like? What are the margin drivers at the company’s disposal?

Universal robots have made a revenue of $311 mn in 2021 and the company is still monitoring robust growth for the first half of the year 2022. Recently Universal Robots has recorded a Q2 revenue of $83 mn. Universal Robots has seen the growth of 30% across the first two quarters of 2022 compared to the first half of 2021.

Is the company planning to raise funds in the near future? If yes, share details of the same.
 
Not planning as of now.

Help us understand the macroeconomic trends that could drive growth of cobots? Share with us your company’s strategy to maximize these opportunities?
 
Macroeconomic trends that can drive growth of cobots:

• Labour Shortage: Due to the after-effects of the tragic pandemic, the world has seen a massive shortage of labour in various industries that have affected the economy at large. Labour is an important driver of growth in the development of the industrial sector in an economy. The adoption of robotics and automation has fulfilled the gap caused by the labour shortage in the economy. Cobot can work 24/7 with high precision, ensuring that human errors are significantly reduced. Cobots are designed to perform tasks that are repetitive in nature. Cobots relieve humans from performing repetitive, tedious and dirty tasks so that they focus on more valued tasks.
• Supply chain: the global supply chain has been tremendously affected by the after-effects of the pandemic leading to the regressive adoption of robotic technology in the industrial sector. Cobots, or collaborative robots, have substantially filled this vacuum in the global supply chain. Cobots assist in boosting output while lowering manufacturing costs, allowing the firm to maintain its position as a market leader. According to Fortune Business Insights, by the end of 2028, the worldwide cobot market is projected to expand at a CAGR of 42.7 percent. Cobots are a significant factor in industrial growth.
• Sustainability: bringing sustainability into the industrial sector is one of the major objectives for any economy. In the upcoming years, industries all over the world have sustainability as one of their top priorities. Advanced technology has brought out many ways through which sustainability can be achieved. Collaborative robots are one such solution for attaining sustainability goals. Cobots use less energy than industrial robots do. Eventually laying the foundation for sustainability. Adoption of sustainability by the industry is beneficial for the environment as well as effective in the reduction of cost.

What are the key challenges or risks facing the cobots industry?
 
Cobots are safe to use in conjunction with people. They are regarded as the finest option for simple, secure, and affordable automation. Cobots are simple to use, small, light, adaptable, and affordable.
 
Cobots, in contrast to traditional robots, are easy to use, don’t need cages or fences to ensure the safety of employees, and are versatile; even a single cobot may be deployed and redeployed to accomplish a variety of activities.
 
Cobots have altered how industrial facilities approach automation. Humans are no longer required to undertake tiresome, repetitive, and filthy chores thanks to cobots. Cobots provide a lot of advantages, however the cobot industry may also face several challenges:

• Speed: Collaborative robots operate at a slower speed than industrial robots. In order to ensure safety and avoid caging around the robots, cobots operate at a slower speed. Despite operating at a slower speed, operators have noticed that productivity has increased. This is due to cobots’ ability to work around-the-clock without taking breaks, unlike human operators.
• Lower Payload capacity: Cobots are lightweight and compact in size. Hence their weight lifting capacity is lesser compared to industrial robots. Nonetheless, Universal Robots is expanding. We had recently launched UR20, a next-generation cobot with a 20kg payload.
• Not fully Independent: Cobots need human supervision to operate although cobots can work 24/7, they require human guidance to operate. In contrast, industrial robots can operate without human intervention. This also implies that cobots are not replacing human employees, unlike traditional industrial robots.