India a Machine Market
Venice,11th September 2015
Page 2
Content
General Assembly - Venice 2015, 11th September
» Political and Economic Scenario
» Plastics and Rubber Machines in India
» Fit enough, good enough?
» Plastics exhibitions in India
» VDMA India
Page 3
Political and Economical Scenario
General Assembly - Venice 2015, 11th September
Page 4 General Assembly - Venice 2015, 11th September
» After 30 years – single party majority
» Slogan – “Ache Din” – Better days ahead
» Absolute Majority in Lok Sabha (lower house); Minority in Rajya Sabha (upper house)
» Maximum governance, Minimum government
» Ease of Doing Business
» Cooperative Federalism
Political Scenario
Page 7
Present Economical Scenario
0
1
2
3
4
5
6
7
8
9
Fiscal Deficit as% of GDP
CurrentAccount Deficit
as % of GDP
Inflation- CPI(% Yr end)
Inflation-WPI(% Yr end)
GDP Growth %Yr
2013
2014
2015
2016 (est)
General Assembly - Venice 2015, 11th September
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Indian Prime Minister Mr. Narendra Modi’s 'Make in India' campaign Summary
» An increase in the share of manufacturing in the country’s Gross Domestic
Product from 16% to 25% by 2022.
» To create 100 million additional jobs by 2022 in manufacturing sector.
» To develop 100 smart cities in India by 2020.
» Skill India’s aim is to provide training & skill development to 500 million
youngsters by 2020.
» A new ‘National Industrial Corridor Development Authority’ is being created
to coordinate, integrate, monitor and supervise development of all Industrial Corridors.
Make in India Campaign
Page 7
Plastics and Rubber Machines in India
General Assembly - Venice 2015, 11th September
Page 8
Pune
Mumbai
Pithampur
NCR
Sanand
Chennai Hosur
Bangalore
Hyderabad
Ahmedabad
Vadodara
Packaging
Medical/Pharma
Automotive
Pune
Mumbai
Rajkot
Ahmedabad
NCR
Bangalore
Kanpur
Aurangabad
Chennai
Consumer goods/household goods
Construction (Pipe)
Source: BDB analysis
Key clusters for plastic processing sectors : packaging, medical and automotive
Key clusters for plastic processing sectors : Construction (Pipe) and consumer /household goods
Kolkata
Key Clusters Of Plastic Processing Sectors In India
General Assembly - Venice 2015, 11th September
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Deliveries to India
Core Machinery
General Assembly - Venice 2015, 11th September
0
5000
10000
15000
20000
25000
0
100
200
300
400
500
600
700
800
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Worldexports Total EUROMAP Total
Worldexports P&R EUROMAP P&Rmill. € mill. €
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Exports from India
Core Machinery
General Assembly - Venice 2015, 11th September
50
100
150
200
250
2.500
5.000
7.500
10.000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Machine Exports Plastics and Rubber Machinery
mill. €
mill. €
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EUROMAP Deliveries to India
Core Machinery
General Assembly - Venice 2015, 11th September
10
20
30
40
50
60
0
100
200
300
400
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EUROMAP Total Injection Moulding Machines
Extrusion Machines Blow Moulding Machines
mill. € mill. €
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China Deliveries to India
Core Machinery
General Assembly - Venice 2015, 11th September
5
10
15
20
25
30
35
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Injection Moulding Machines Extrusion Machines
Blow Moulding Machines
mill. €
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German Deliveries to India
Core Machinery
General Assembly - Venice 2015, 11th September
5
10
15
20
25
30
35
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Injection Moulding Machines Extrusion Machines
Blow Moulding Machines
mill. €
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Italian Deliveries to India
Core Machinery
General Assembly - Venice 2015, 11th September
3
5
8
10
13
15
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Injection Moulding Machines Extrusion Machines
Blow Moulding Machines
mill. €
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Is Fit enough, good enough?
General Assembly - Venice 2015, 11th September
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Customers Perception On Technology Vs Price
Technology preference
Pri
ce s
ensi
tive
Low Medium High
Low
Medium
High
Packaging – MSME companies
Packaging – Large companies
Auto Components – Large companies
Auto components – MSME companies
Building / Construction – MSME companies
Building / Construction – Large companies
Medical – Large companies
Medical – MSME companies
Other household – MSME companies
White & brown goods – Large companies
Customers preference level towards high end technology
Cus
tom
ers
pref
eren
ce le
vel t
owar
ds lo
w p
riced
mac
hine
s
Indian MSME customers across all
application sectors are still
considering the price as a key
factor while selecting a brand due
to their low purchasing power
However, in sectors like auto
components and packaging,
customers are going for used
machines from major brands to
meet their technical requirements
at low cost
Source: BDB analysis
MSME – Micro, Small & Medium Enterprises
‘just fit’ technology
high -sophisticated machines on
premium level
General Assembly - Venice 2015, 11th September
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Fit enough is good enough? » Increasing volume and precision generates demand for high class
machines.
» It reduces energy consumption.
» Adherence to the delivery commitment with reduced production time with higher tolerance.
» It ensures zero wastage in operation.
» It helps in process consistency thus improving the quality output.
» Shift in preference from commodity injection moulding to performance injection moulding are noticed.
» New technology machines with proven reliability are finding preference.
» MSME customers consider price over technology irrespective of any sector
» Large customers from auto component, medical and packaging sector prefer technology over price.
» India niche market – Limited Volume
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Plastics exhibitions in India - a close call!
General Assembly - Venice 2015, 11th September
Major Exhibitions In India For Plastic Processing Machinery
PLASTINDIA is one of the largest pure plastics exhibitions on the global plastics scene: 2000 Exhibitors. Participation of 40 Countries with
1,50,000 Business Visitors Held every 3 years Mounted and spread across
1,25,000 sq. mtrs area
PLASTIVISION INDIA is the 2nd Largest Plastics Exhibition in India : 1500 Exhibitors. Participation of 25+ Countries
with 1,25,000 Business Visitors Live Demonstration of
Machines for Moulds, Printing & Packaging Products.
Emerged as one of the top 10 global Plastics Exhibition.
Mounted and spread across 90,000+ sq. mtrs area.
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4,6 4,2
4,7 4,4
PLASTINDIA PLASTIVISION
Suppliers Plastic Processors
Perception on major exhibition
PLASTINDIA is considered as the key exhibition for the plastic processing machinery in India
Plastic processors are perceiving that PLASTINDIA is the key source for information on the new technology and the products
Apart from the Indian suppliers, the MNC suppliers are also using these exhibitions as a platform to reach out their customers in Indian market
Satisfaction scale: 1= Highly dissatisfied; 5 = Highly satisfied
General Assembly - Venice 2015, 11th September
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Conclusion => India back on track!
General Assembly - Venice 2015, 11th September
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VDMA India
General Assembly - Venice 2015, 11th September
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Rajesh Nath, Managing Director VDMA India Head Office GC-34, Sector-III, Salt Lake City Kolkata Telephone +91 33 3219522 E-Mail [email protected]
General Assembly - Venice 2015, 11th September
Sumit Sharma, Regional Manager VDMA Noth India Office C-25, Sector-61 Noida Telephone +91 120 4255029 E-Mail [email protected]
Jamly John, Regional Manager VDMA West India Office 102, Jaimitra, Pragati Nagar, M. G. Road No. 6 Mumbai Telephone +91 981 9045109 E-Mail [email protected]
VDMA India Contacts
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Thank you for Your Attention