Page 21 - IMDR Journal 2025

Research Article
surge from ₹33,124 Cr to ₹37,290 Cr, along with an increase benefited from strong financial recoveries and robust
in PAT from ₹3,384 Cr to ₹3,967 Cr.In 2018, Asian Paints efficiency improvements, IT firms like Wipro and Bosch
incorporated automation to improve production processes. have mostly enjoyed process improvements without
This change secured a rise in revenue from ₹16,209 Cr to dramatic sales growth.
₹30,727 Cr, with profit after tax increasing from ₹2,132 Cr
Nestlé and Asian Paints, as consumer goods manufacturers,
to ₹5,321 Cr.Nestlé India integrated digital manufacturing have used AI technologies for demand forecasting, IoT for
in 2019, greatly enhancing operational efficiency. Revenue inventory control, and digital tools for tracking across the
surged from ₹12,295 Cr to ₹24,275 Cr, while profit after tax supply chain to enhance visibility and production efficiency,
grew from ₹1,968 Cr to ₹3,932 Cr. Hindalco utilized data- resulting in lead time shrinkage, lower logistics costs, and
driven production planning in 2020, leading to revenue enhanced responsiveness to market demands, ultimately
growth from ₹45,207 Cr to ₹82,616 Cr and an increase in solidifying their market position.
profit from ₹1,205 Cr to ₹3,697 Cr.
Hypothesis Testing
Financial Trends Summary
The hypothesis is supported by an analysis of various
The introduction of Industry 4.0 technologies has resulted in
significant revenue boosts for businesses in various companies from different sectors. Among the chosen
industries, especially those heavily focused on sample, many manufacturing companies, including Tata
manufacturing. Organizations like Tata Motors, Hindalco, Motors, CEAT, and Vedanta, showcased significant cost
and Vedanta have witnessed considerable financial growth advantages following the implementation of IoT. These
by utilizing smart manufacturing, automation, and data- companies noted increases in revenue and enhancements in
informed decision-making. The adoption of IoT, AI, and operational efficiency, suggesting that IoT adoption played a
advanced analytics has enhanced production processes, key role in optimizing production, minimizing waste, and
decreased downtime, and improved product quality, thereby improving decision-making processes.
increasing customer satisfaction and driving higher sales. In contrast, some firms like Hindalco faced a rise in costs
initially due to the substantial investments needed for IoT
integration. Furthermore, IT firms such as Wipro and Bosch
exhibited improvements in processes but did not see direct
financial returns. As a result, the hypothesis H1, asserting
that the adoption of IoT leads to results in changes to costs
and improvements in operational methods, is validated,
whereas H0, which claims that IoT implementation does not
cause any significant changes in costs, is disproven due to
the evident financial and operational advantages seen in
Graph 6.3 various industries.
Cost savings have emerged as another crucial benefit of
Industry 4.0, The graph displays the cost reductions realized
by different companies before and after implementing KEY FINDINGS
Industry 4.0 technologies, especially IoT. A majority of Major Financial Advancements in Manufacturing-Heavy
companies, including Nestlé India (20%), Vedanta (18%), Sectors
and Tata Motors (15%), saw notable decreases in costs due
to enhanced operational efficiency, automation, and Businesses within manufacturing-oriented industries have
improved resource management. CEAT (12%), Hero seen significant financial improvements after implementing
MotoCorp (10%), and Asian Paints (14%) also gained from Industry 4.0 technologies. Companies such as Tata Motors,
these innovations, which led to better production methods Hindalco, and Vedanta have utilized IoT, AI, and automation
and streamlined supply chains. Wipro and Bosch would to boost productivity, reduce waste, and elevate output.
have realized lesser savings of 8% and 5%, respectively, but For instance, Tata Motors integrated AI-based robotics and
with better cost structure due to automation and AI based intelligent quality control in its manufacturing processes,
analytics merit note. On the other hand, Hindalco stands out resulting in an increase in revenue from ₹48,078 Cr to
as an anomaly with a reported, IoT cost adoption of 3% ₹72,745 Cr and shifting from a loss of ₹7,328 Cr to a profit of
increase. This negative impact can be attributed to ₹7,902 Cr. Hindalco and Vedanta embraced IoT-based
challenges like high process automation, which improved their asset utilization,
Implementation costs, IoT solution integration issues, or resulting in significant revenue and profitability growth.
traditionally embedded, industry specific constraints on These improvements in finances indicate that
rapidly realizing cost savings. manufacturing businesses embracing data-based decision-
making and automation technologies see improved
Impact of AI-powered automation has optimized cost of efficiency, lower operational costs, and higher market
operations for companies such as Wipro, Bosch, and Asian competitiveness.
Paints. These firms have adopted machine learning, robotic
process automation (RPA), and smart supply chain Savings and Efficiency Gains Across Industries Among the
management, enhancing operations significantly while most evident benefits of embracing Industry 4.0 is the ability
eliminating waste. Unlike manufacturing firms which have to maximize

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