Trends in ma­chin­ing in­dus­try in In­dia

Auto components India - - COVER STORY - 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%).

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

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