Trends in machining industry in India
India stands 13th in production and 10th in the consumption of machine tools in the world as per the 2016 Gardner Business Media survey. The country is set to become a key player in the global machine tools industry. It is likely to see substantial highend machine tool manufacturing with the emphasis on Make in India and manufacturing growth, for which the machine tools sector serves as the mother industry.
The Indian machine tool Industry has around 1000 units in the production of machine tools, accessories/attachments, subsystems and parts. Of these, around 25 in the large- scale sector account for about 70% of the turnover and the rest are in the MSME sector of the industry. Approximately, 75% of the Indian machine tool producers are ISO certified. While the large organized players cater to India’s heavy and medium industries, the small-scale sector meets the demand of ancillary and other units. Many machine tool manufacturers have also obtained CE Marking certification, in keeping with the requirements of the European markets.
As per Gardner’s world machine tool consumption survey 2016:
Global machine tool production during 2015 is about 80.1 Bn USD.
Global machine tool consumption during 2015 is about 78.9 Bn USD.
China accounts for 27.6% of global machine tool production, followed by Japan(16.8%), Germany(15.5%), Italy(6..6%), and Korea (5.96%).
India’s share in Global machine tool production is about 0.9%.
India is the 13th largest manufacturer of machine tools in the world as per Gardner’s world machine tool consumption survey report 2016.
The Indian machine tool industry consists of around 1000 manufacturing units covering large, medium and small companies.
Domestic manufacturers have 43% share in consumption. In 2014, India imported € 1228 million (Rs 9210 crore) of machine tools, out of which Germany had a share of 13.8%, ranking 2nd after Japan (26.9%).
Metal cutting machine tools
Metal Cutting machine tools plays a major role in the production of diverse products starting with automobile industry to high precision components for the instrumentation and electronics industries, and everywhere in-between. The metal cutting machine tool industry in India has been serving the need for manufacturing through the manufacture of a variety of metal cutting machines. However, the industry has yet to meet the demand for higher technology machines. As a result the market share for Indian machines is low, and imports meet a large part of the demand for metal cutting machine tools.
Metal Cutting machine tool industry plays important role in manufacturing Sector. Metal cutting machine tools constitutes about 80% of total metal working machine tools demand in India. About 52% of metal cutting machines consumed in India are imported.
Metal cutting industry has seen increasing trend over three years with the stable growth in manufacturing activity in the country. User sectors like auto industry and auto component industry has led to growth of metal cutting machine tool demand during these years
About 55% of the metal cutting machines consumed in India are imported. About 45% of the machines are imported from Japan & Germany. Indian companies can look into the products and substitute with domestic production.
India imports about 55% of the metal cutting machines. Japan is the major source of metal cutting machine tools imports to India. Japan (27%) and Germany(17%) contribute about 46% of metal cutting imports to India. Taiwan, Italy, Korea and China are the other source of metal cutting imports to India.
Trends in imports of various cutting machines analysed are:
Turning machines Machining centers Milling machines Drilling machines Grinding machines Gear Cutting machines
Metal Cutting is a collection of processes where in material is brought to a specified geometry by removing excess material using various kinds of tooling to leave a finished part that meets specifications.
Demand of the Vertical Machining Centres is on the higher side. About 28% of the metal cutting machine tool imports constitutes of Vertical Machining Centres. Demand for Lathes Horizontal Machining Centres, Grinding machines and Other Metal Cutting machines are also higher side.
During FY17, sales and orders of metal cutting machine tools shown a promising growth of over 15%. Auto Sector major user of machine tools to grow 3.5 to 4 times from current size of USD 74 Billion to reach about USD 300 Billion by 2026. The Indian auto-components industry is expected to register return over of US$ 100 billion by 2020. Considering growth in all user industries, metal cutting machine tool industry is likely to grow at CAGR of about 10% during next three years.
Industry 4.0
Industrie 4.0 is not only a topic for large-scale industry, but must also be feasible for small and medium-sized companies as well. Implementation strategies are necessary that show for example how the harmonisation and integration with existing production technologies, IT systems and databases should occur. In addition, best practice examples can illustrate how production processes in the future should look, which automation solutions can be intelligently introduced or how the IT security of cross-company production can be ensured.
By using Industrie 4.0 technologies, companies can rise to the global challenges of increasing customer requirements and volatile market developments. When products and processes are interconnected, and data is available in real time and is transparent, the foundation for decentralised production control is laid. This allows greater flexibility in production and thus increases competitiveness.
Through the interconnection of intelligent measurement technologies in production, data becomes available which together with automation solutions can be used for selfoptimisation, self-configuration and self-diagnostics. In this way, the state of machines can be continuously captured and monitored from anywhere in the world. Thus, the conditions for predictive maintenance and services are created.
According to IBEF, the Government of India has set an ambitious target of increasing the contribution of manufacturing output to 25% of Gross Domestic Product (GDP) by 2025, from 16% currently. IoT, being one of the most important aspects of Industry 4.0 for India, is expected to capture close to 20% share in global market in the next five years. According to IBEF forecast, the IoT market in India is projected to grow at a CAGR of more than 28% during 2015-2020. Government of India has taken initiatives such as Green Corridor and ‘Make in India’.
It is against this backdrop that the VDMA established the “VDMA Industrie 4.0 Forum”. Together with VDMA members, the key action fields research, norms and standards, IT security, production and business models, legal frameworks and employee qualification are advanced and the sharing of information and experience is stepped up.