Auto components India

Trends in machining industry in India

- By Rajesh Nath, Managing Director, German Engineerin­g Federation (VDMA)

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.

 ??  ?? In 2014, India imported € 1228 million (Rs 9210 Cr) of machine tools, out of which Germany had a share of 13.8%, ranking 2nd after Japan (26.9%).
In 2014, India imported € 1228 million (Rs 9210 Cr) of machine tools, out of which Germany had a share of 13.8%, ranking 2nd after Japan (26.9%).
 ??  ?? Rajesh Nath, Managing Director, German Engineerin­g Federation (VDMA)
Rajesh Nath, Managing Director, German Engineerin­g Federation (VDMA)

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