india machine tools industry - · pdf fileindia machine tools industry industry overview...
TRANSCRIPT
India Machine Tools Industry
Industry Overview
Structure of The Machine Tool Industry
Classes of Machine Tool Manufacturers Percentage of Companies in Various Classes
Key Players
New Players Entering Market
Scatter of Machine Tool Manufacturers
Production Capability Major Products Products Offered by Major Players
Machine Tools Production Production of Machine Tools over Years Production Break-up NC Machines and Non-NC Machines NC Machines Showing Highest Growth Rate
Machine Tools Consumption Per Capita Consumption Growth in Per Capita Consumption of Machine Tools of
India
Factors Powering Growth Machine Tools Consumer Industries are Growing at a
Good Rate Index of Industrial Production GDP Growth Other Factors
Contents
India Machine Tools Industry
Challenges
Import Market
Used Machine Tools Market
Technical Centres for Training
Government Regulations
Future Outlook
Sources of Data
Important Associations and Their Websites
About Us
Contact Us
India Machine Tools Industry
India is the 18th largest producer of machine tools in the world. The Machine Tools industry consists of about 450 manufacturing units, of which about 150 are in the organized sector and international companies like Doosan, DMG & Makino amongst others which import machines for selling. The top ten manufacturers account for almost 70% of the output. Domestic manufacturers account for about 45% of the total Indian machine tool market. The Indian Machine Tool Sector has had a stagnant growth since the beginning of 2000 as investment in the manufacturing sector slowed down considerably. In early 2002, Indian Engineering Sector, especially the automotive sector, witnessed increased investments as global majors started to outsource manufacturing to India. This led to a spurt in demand for machine tools. The machine tool industry, since then, has been growing at a healthy rate. The machine tool Industry in India is now in a position to export general purpose and standard machine tools to even industrially advanced countries. With Index of Industrial Production touching new highs and emphasis on capital investment by the government, the Machine Tool Industry is all set to witness unprecedented growth.
Industry Overview
India Machine Tools Industry
Machine Tool Industry can be classified according to the types of machines i.e. metal cutting and
metal forming. Both the types of machines can be further classified into manually operated machines
and numerically controlled. As awareness about new technology is increasing, more and more people
are opting for more advanced NC and CNC machines.
Structure of The Machine Tool Industry
*CNC : Computer Numerically Controlled *NC : Numerically Controlled
Machine Tools
Metal Cutting
Metal Forming
Manual
CNC*
Manual
NC*
General Purpose Machine
Special Purpose Machine
Numerically Controlled
Flexible Manufacturing System
India Machine Tools Industry
Class I Class I comprises of Large Multi National Companies with production set
up in India. (Eg.: Bharat Fritz Werner Ltd., Kennametal India Ltd.)
Class II This class comprises of Large Indian Firms (Eg.: ACE Manufacturing
Systems, Batliboi, HMT Machine Tools, Lakshmi Machine Works, TAL
Manufacturing Solutions)
Class III Indian Mid-Sized Companies makes the Class III of Machine Tool
Players. (Eg.: Jyoti CNC Automation Pvt Ltd., Macpower CNC Machine
Pvt. Ltd., PMT Machines Ltd., Miven Machine Tools)
Class IV This class comprises of Small Indian Companies (Eg:. Accurate Systems,
Anil Machines, Galaxy Machinery Pvt. Ltd)
Class V Companies directly importing in India and which have their after sales
service division in India comes in Class V (Eg:. HAAS Automation, DMG
India Pvt. Ltd., Mori-Seiki, Y. Mazak)
Classes of Machine Tool Manufacturers
India Machine Tools Industry
Class VI Class VI comprises of companies which only import machines but do not
have their after sales service division in India (Eg.: Dalian Machine Tool
Group, Francis Klein & Co. Pvt. Ltd.)
Class VII Small companies which buy used machines from outside India and Retro
Fit form Class VII. (Eg.: Askar Microns Pvt. Ltd, Hark Ram Enterprises)
“Majority of the Machine Tool Players in India are small in size (Class IV) and majority of them form a part of the unorganized sector. With the industry growing at a healthy rate, these players are expected to move up higher in the chain i.e. Class II and III”
Percentage of Companies in Various Classes
5%10%
14%
28%
24%
11%
8%
Class IClass IIClass IIIClass IVClass VClass VIClass VII
India Machine Tools Industry
“Ace and HMT are the leading Machine Tool Manufacturers in India currently in terms of revenue.”
Name Type of Company Home Location ACE Private Limited Bangalore LMW Public Limited Coimbatore BFW Private Limited Bangalore Jyoti Private Limited Rajkot
Batliboi Private Limited Rajkot TAL Private Limited Pune
Lokesh Private Limited Hyderabad HMT Public Limited Bangalore DMG Importer China
Mazak Importer Singapore Makino Importer US Feeler Importer Taiwan Haas Importer US
Doosan Importer Korean
Key Players
India Machine Tools Industry
Company Country of Origin Status
MAG Industrial Automation Systems USA Sets up subsidiary in India
Heller Germany Forms JV with TAL Manufacturing Solutions
Glidemeister Germany Sets up tech centre in Bangalore
Schuler Germany To enter into Joint Ventures
MAUS Italy Enters into JV with TAL Manufacturing Solutions
Rosa Ermando Italy Enters into JV with UCAM of Bangalore
Citizen Japan Opens representative office in Bangalore
Amanda Japan To set up manufacturing facility on India
“India has emerged as the nerve centre of the machine tool industry in Asia and its technological capabilities are far superior to many other Asian countries. Our JV with UCAM will manufacture a special category of machines, which hitherto were not made in India.”
- Ricardo Rosa
President Rosa Ermando SpA
“We see the market for machine tools in India growing rapidly in the next few years. We are here because of its highly trained, efficient and skilled workforce.”
- Roger W Cope
President MAG Industrial Automation Systems
New Players Entering Market
India Machine Tools Industry
“The majority of the Machine Tool Manufacturers are located in Karnataka and Maharashtra. Bangalore is the base for most of the Machine Tool Companies in India.”
Current Hubs Upcoming Consumption Areas Mumbai and Pune (Maharashtra) Ahmednagar
Bangalore (Karnataka) Rudrapur
Coimbatore and Chennai (Tamil Nadu) Jaipur
Batala, Jalandhar and Ludhiana (Punjab) West Bengal
Ahmedabad, Baroda, Rajkot, Jamnagar and Surendranagar (Gujarat)
Scatter of Machine Tool Manufacturers
Scatter of Machine Tool Manufacturers
3% 5%12%
2%
28%29%
14%7%
Andhra Pradesh Delhi Gujarat HaryanaKarnataka Maharashtra Punjab Tamil Nadu
India Machine Tools Industry
The Indian machine tools industry manufactures almost the complete
range of metal-cutting and metal-forming machine tools. Customized in
nature, the products from the Indian basket comprise conventional
machine tools as well as computer numerically controlled (CNC)
machines. There are other variants offered by Indian manufacturers too,
including special purpose machines, robotics, handling systems, and
TPM-friendly machines.
Major Products CNC Turning Centers The Indian machine tools industry produces a range of turning centers in
all sizes, from the small to the very large, and for special applications.
CNC Machining Centers The Indian machine tools industry produces a range of CNC machining
centers covering small to very large sizes. The current trend in
machining centers is to have additional axes of movements to take on
complex machining requirements. Internationally, machining centers are
mostly built with at least 5 axes.
Production Capability
India Machine Tools Industry
CNC Grinding Machines The main emphasis in grinding machines is on accuracy, surface finish
and high process capability. Such machines are required by the tool and
die making industries, which are on a growth path in India at present.
Special Purpose Machines The Indian machine tools industry has been successful in developing the
ability to design and produce special purpose machines for customers in
almost all industry segments. The special purpose machines
manufactured in India often incorporate the most advanced features of
technology from all over the world. This segment of Indian machine tools
can be a niche for exports, in view of the cost competitiveness of Indian
designs and manufacturing capabilities for these machines.
Metal Forming Presses Metal forming presses for sheet metal working form one of the most
important classes of machines required by the industry. With the
explosive growth of the consumer durables, electronics and auto
industries, these machines represent the core-manufacturing
requirement for these sectors.
India Machine Tools Industry
Products Offered by Major Players
Product Categories AB
HIJ
AT
AB
RO
AC
CU
RA
TE
AC
E
AC
UM
AC
ALE
X
AM
C
AM
S
AR
IHA
NT
ASK
AR
BA
KER
BA
TLIB
OI
BFW
ELEC
TRO
NIC
A
ELEC
TRO
PNEU
MA
TIC
S
EMI I
ND
IA
FIE
FIN
ECR
AFT
S
HM
T
IMI
Turning Machines ■ ■ ■ ■ ■
Machining Centres ■ ■ ■ ■
Flexible Manufacturing Systems ■
Milling Machines ■ ■ ■
Drilling Machines ■ ■
Gear Cutting & Finishing Machines ■
Boring & Milling, Broaching Machines ■
Grinding Machines ■ ■ ■
Spark Erosion & Electric Discharge Machines ■
Honing, Lapping & Polishing Machines ■ ■
Heat Treatment Equipment ■
Testing Equipment ■ ■
Die Casting Machines ■
Plastic Injection Moulding Machines ■
Special Purpose Machines
CNC Systems ■
Cutting Tools / Holders
Accessories, Components & Gauges ■ ■ ■ ■ ■ ■
Tool Room Machines / Attachments ■
Press Brake, Shearing Machines ■ ■ ■
Sheet Metal Presses ■ ■ ■
India Machine Tools Industry
Products Offered by Major Players
Product Categories ISG
EC
JYO
TI
KA
WA
KEN
NA
MET
AL
LMW
MG
TL
NIS
SEI A
SB
OM
TEC
PAL
PMT
PRA
GA
QU
A-T
ECH
SEC
O
SHA
RD
A
TAC
O
TAL
UN
IVER
SAL
TOO
L
WEL
DO
R
WID
IA
Turning Machines ■ ■ ■ ■ ■
Machining Centres ■ ■ ■ ■
Flexible Manufacturing Systems
Milling Machines ■
Drilling Machines ■
Gear Cutting & Finishing Machines ■ ■ ■
Boring & Milling, Broaching Machines ■ ■
Grinding Machines ■ ■ ■ ■
Spark Erosion & Electric Discharge Machines
Honing, Lapping & Polishing Machines
Heat Treatment Equipment
Testing Equipment
Die Casting Machines
Plastic Injection Moulding Machines ■
Special Purpose Machines ■ ■ ■
CNC Systems
Cutting Tools / Holders ■ ■ ■
Accessories, Components & Gauges ■ ■ ■ ■
Tool Room Machines / Attachments ■ ■ ■
Press Brake, Shearing Machines ■ ■ ■
Sheet Metal Presses ■ ■ ■
India Machine Tools Industry
Production of Machine Tools over Years
Due to outsourcing of auto-components by foreign automobile
manufacturers to India, there was a spurt in demand for machine tools.
As a result, the production of machine maintained a high growth rate till
2004-05. After that the growth rate came down and remained fairly high.
This growth rate is expected to continue in the coming years and might
see another spurt if there are some favourable changes in the
government policies.
Machine Tools Production
20,95818,192
15,164
11,042
Value in Rs. Million
2005-06
+20%
2006-07 2004-05
+37%
2003-04
+15%
Production of Machine Tools in India
India Machine Tools Industry
Production Break-up* “NC Machines constitute 57% of the production in terms of value.”
In 2006-07, spares constituted 64% of production in terms of units, NC
machines, Non NC machines and Tools constituted 3%, 2% and 31%
respectively. NC machines constituted 57% of the total value of
production. This is because spares lie in the ‘High Volume Low Value’
category and NC Machines lie in ‘High Value Low Volume’ category. The
remaining 43% of value of production in contributed by Non NC
Machines, Spares and Tools at 25%, 12% and 6% respectively.
*NC Machines : Numerically Controlled Machines Non NC Machines : Non Numerically Controlled Machines
6%
12%
25%57%
31%
64%
ToolsSparesNon NC Machines
2%
NC Machines
3%Production Break Up in 2006-07
Value Total : Rs 20958.06 Million
Volume Total : 156859 Units
India Machine Tools Industry
NC Machines and Non NC Machines
The number of Non NC machines produced in India has gone down. This
trend is expected to continue as accuracy becomes more important and
people become more technology literate.
NC Machines Showing Highest Growth Rate
The production of Shearing Machines and Special Purpose Machines
(SPM) has more than doubled over the last year. This is mostly due to
the growth in demand by the manufacturing sector.
4,3235,344
3,2402,455
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000 7,563
2005-06 2006-07
Non NC
NC
7,799
Volume Turnover of Machine Tools in India
Number of Machines Produced
Value Turnover of Machine Tools in India
Value in Rs Million
9,44312,053
4,078
5,164
0
5,000
10,000
15,000
20,000
13,521
2005-06 2006-07
Non NC
NC
17,217
NC Machines Growth Rate in 2006-07
85.19 83.82108.43
152.51
0.0020.0040.0060.0080.00
100.00120.00140.00160.00180.00
EDM,CNC HorizontalMachining Center
SPM CNC's Shearing
Machine Type
Rate
(%)
India Machine Tools Industry
“Currently India ranks 29th globally in terms of per capita machine tool consumption and lags far behind the top five countries.”
Country Current Per
Capita Consumption
India will reach this level in
Russia 2.7 2009-10 Argentina 3.6 2010-11
Brazil 5.8 2012-13 China 9.9 2014-15
Machine Tools Consumption
Per Capita Consumption of Machine Tools in 2006Top Five Countrie and India
116 112 104
63 61
10
2040
6080
100120
140
Switzerland Taiwan Soth Korea Germany Italy India
Country
US
D
Growth in Per Capita Consumption of Machine Tools of India
1.49 1.98 2.58 3.43 4.385.58
6.848.39
10.29
02468
1012
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Year
USD
India Machine Tools Industry
Machine Tools Consumer Industries Are Growing At a
Good Rate
Auto & Auto Component industry and Capital Goods industry form the
major market for machine tools in India. Consumer Durables and
Aviation Industry are the other industry segments where the machine
tools are used. Out of these, auto & auto component industry form about
40% of the machine tools market. All these industries are currently
growing at a healthy rate and the trend is expected to continue in the
coming years.
“Apart from the above mentioned industries, defence and computer hardware manufacturing are the other industries which will which will fuel Machine Tool Industry’s growth in the coming years.”
Factors Powering Growth
Growth Rates
25 2520
13
05
1015202530
Auto AutoComponent
Capital Goods Electronics
Industry
Perc
enta
ge
India Machine Tools Industry
Index of Industrial Production
The index of industrial production, lead by the manufacturing sector is
showing unprecedented growth. This growth is fuelling the demand for all
capital goods.
“Industrial production in April bucked the traditional lean-month trend and hit an 11-year high on the back of a strong upsurge in manufacturing. Growth in industrial production in April 2007 has been largely fuelled by manufacturing, which grew consistently in double digits in 2006-07 (except October). Year-on-year growth in manufacturing in April was 15.1 per cent, over 11 per cent in the previous year.”
-Business Standard (13th June, 2007)
Index of Industrial Production
0
50
100
150
200
250
300
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Apr-07
Period
Inde
x
0
2
4
6
8
10
12
14
16
Perc
enta
ge
Index Growth of Index
India Machine Tools Industry
GDP Growth The Indian Economy has been growing at an average rate of more than
8.5% over the last four years. This growth is percolating down to all the
industries and as a result demand for capital goods is also on a high.
“India's economy should grow at a faster pace than previously expected in the fiscal year to March 2008 on buoyant manufacturing and services, but that pace will be slower than the strong 2006-07 expansion, a Reuters poll shows.”
-The Economic Times (27th June, 2007)
GDP of India (At Factor Cost) and its Growth
0
500000
1000000
1500000
2000000
2500000
3000000
2003-04 2004-05 2005-06 2006-07
Year
(Rs.
, Cro
res)
0.00
2.00
4.00
6.00
8.00
10.00
Gro
wth
Per
cent
age
India Machine Tools Industry
Other Factors
Growing per-capita income and disposable income which is
resulting in increase in consumption
Growing stature of India in the global market as a sourcing hub for
auto components and other manufacturing industry products.
Increase in export of cars, especially small cars, from India to the
rest of the world.
Strong and growing domestic demand for mobile phones, personal
computers, consumer, medical, strategic and automotive
electronics and other consumer durables
Increasing demand for telecom infrastructure equipment due to
increase in tele-density from the present 100 per 1000 to 220 by
2007.
Push to the infrastructure of the country by the government
resulting in demand for capital goods.
Rising defence expenditure and opening up of the defence
equipment manufacturing to the private sector.
Increasing awareness of the technologically efficient products and
the adaptation of same by the manufacturers.
India Machine Tools Industry
Used machinery market is big in India and is expected to grow at
around 30% this year. As the cost of new machines is still high due
to import duties, used machines are a big challenge for machine
tool companies importing new machines.
Time required to deliver a machine after placing an order is about
8- 10 months which is a concern for the Industry.
Technical Support and Service of players importing machines is a
major concern as Indian customers are very specific about the
servicing and usage aspect aligned with purchase of machinery.
Price is another important area of concern. Indian companies prefer
to pay premium on a machine which has product features second
to best but is excellent in terms of technical service. This again
poses problem for technically sound international companies as
they don’t have a good service network compared to Indian
companies.
Dollar depreciation is a concern for Indian Machine Tool Players.
Local players are upgrading themselves technologically by entering
into collaboration with other International players. This would
increase the competition in the market.
Challenges
India Machine Tools Industry
Due to slow down in the machine tool market till early 2002, the
vendors of machine tools companies reduced production. The
vendors have not been able to ramp up the capacity since then. As
a result, machine tool manufacturers haven’t been able to expand
as desired. This shortage in supply is a big concern for machine
tool companies aspiring to expand rapidly.
Even though India produces one of the largest numbers of
engineers in the world today, most of them of opt for IT related
fields. As a result, machine tool industry is facing a crunch of
engineers. Also there is shortage of CNC machine operators in the
country which is hampering technology adoption.
India Machine Tools Industry
Imports account for about 40-50 per cent of total consumption of
machine tools. In the calendar year 2006, a total of 20,050 metal cutting
machine tools worth Rs.27,847 million and 3,717 metal forming machine
tools worth Rs.10,089 million were imported.
By and large, imports are restricted to specialized requirement not
produced in India. These include high speed, high precision machines
and heavy-duty machines. A few users, who export their products, do
import their capital goods under the Export Promotion and Credit
Guarantee scheme on price consideration. Due to price advantage,
several companies have imported pre-owned machines.
The current import tariff on machine tools is about 33 percent. Industry
sources expect it to be lowered in the coming years. This would result in
increased competition from foreign multi-national even though the
implementation of VAT has worked towards the advantage of local
manufacturers.
Import Market
27,84722,914
13,0745,699
10,0896,1222,9271,068
+174%
+65%
2006
+75%
+109%
+129%
+22%
Metal FormingMetal Cutting
2005 2004 2003
Growth of Machine Tool Imports over Years
Values in Rs. Million
India Machine Tools Industry
As India is a cost sensitive country, the demand for used machinery in
the country is very high. Seeing the potential, international big names like
DMG have started giving guarantees on there used machines. Apart
from this, used machines of almost all the international companies are
being imported into the country.
Used machine tools form a major chunk of the machine tools market of
India currently. High import duties coupled with long delivery time are
only adding to the demand for used machines.
There are large numbers of retro-fitters and used machine dealers in
India who import machines and after some repairs sell them to the local
customers. The cost of retro-fitting is very low in India as compared to
other countries. This helps in keeping low cost of used machine tools.
With the demand for machine tools reaching new heights due to
burgeoning economy, the demand for used machine tools is only going
to increase.
Used Machine Tools Market
India Machine Tools Industry
Due to shortage of skilled manpower and growing demand of Tools and
dies in the country, particularly in the SSI sector, Government of India
have decided to assist the State Governments to set up Mini Tool Room
and Training center. There are about 20 centers all over India catering to
the requirement.
These centres have proved to be a boon to Machine tool Industry. It has
provided the base for training and development of the manpower in the
industry and thus improve productivity.
Technical Centres for Training
India Machine Tools Industry
100% FDI is allowed in the Machine Tool Industry.
Machine tools manufacturers are exempt from obtaining an
industrial licence to manufacture.
Machine tool Manufacturers are free to select the location of their
project.
Only specific items under machine tools are reserved for production
by the small scale industry.
Import duties have been constantly reduced to promote increased
import and usage of machine tools.
Manufacturing units of machine tools and consumer companies can
take benefit of the EPCG scheme. EPCG scheme allows import of
capital goods for pre production, production and post production at
5% Customs duty which otherwise would be 12.5% subject to an
export obligation equivalent to 8 times of duty saved on capital
goods imported under EPCG scheme to be fulfilled in 8 years
reckoned from Authorisation issue-date.
Government Regulations
India Machine Tools Industry
Machine Tool Industry is in a position to export general purpose and a standard machine tool to even industrially advanced countries. The industry, however, lacks in design and engineering capability to undertake very high precision CNC Machines. Some companies have taken up manufacture of CNC Machines, but there is a need to upgrade research and development in this field. Indian machine tools are manufactured to the international standard of quality / precision and reliability. A number of collaborations have also been approved for bringing in the latest technology in this field of modern machine tools and the industry is now exporting conventional as well as NC/CNC high - tech machine tools. With the boom in the manufacturing sector, and growth in exports due to growing acceptance of India’s technical prowess, the demand for machine tools is only going to increase. By overcoming some of its engineering and designing deficiencies, and utilizing the available skilled manpower fully, India can become the global hub for machine tools in the coming years.
Future Outlook
India Machine Tools Industry
D’Essence Research Indian Machine Tool Manufacturers Association Website Department of Heavy Engineering (Govt. of India) Report IBEF report on Machine Tools International Business Strategies Report Business Standard The Economic Times Economic Survey – Govt. of India Cygnus Report on Heavy Engineering Gardner’s Report on Machine Tool Consumption China Machine Tool Market Report - KPMG Automobile Component Manufacturers Association (ACMA)
Website Society of Indian Automobile Manufacturers (SIAM) Website
Sources of Data
India Machine Tools Industry
Indian Machine Tools Manufacturers’ Association
http://www.imtma.in/
Rajkot Machine Tools Manufacturers’ Association http://www.mtmarajkot.org/
Ludhiana Machine Tools Manufacturers’ Association http://www.lmtma.org/
Auto Component Manufacturers Association http://acmainfo.com/
Society of Indian Automobile Manufacturers http://www.siamindia.com/
Tool and Gauge Manufacturers Association of India
http://www.tagmaindia.org/
Important Associations and Their Websites
India Machine Tools Industry
D'Essence Consulting is a Management Consulting, Business Advisory and Talent Management Consulting Boutique firm. We have been operational since 1998 with our base in Mumbai, India. We assist Corporate organizations, Government institutions and Industry associations to build, grow and remain competitive. We advise companies on building their sales, improving their productivity and increasing their bottom line. Majority of our work is focused on the areas of growth, leadership, strategy and confidential projects. We also help organizations in M&A dealings & forming Joint Ventures, Strategic alliances and partnerships. In case of Machine Tools, we have an experience of working with a Global Machine Tool Giant. We are very well versed with the Macro-Micro Linkages that affect the Demand & Supply of Machine Tool Industry. We have In-Depth Knowledge of the Industry right from its Supply Chain, Sourcing of Human Resource, and Vendor Management to Customer Needs & Requirements. WE CAN HELP YOU WITH:
Turn Around Strategy India Entry Strategy Start Up Strategy and Implementation Create a Business Plan to suit your strategic policies Valuing your firm for various purposes and Due Diligence Finding a Strategic Partner Mergers and Acquisitions Research & Assessment Marketing and Sales Strategy
About Us
India Machine Tools Industry
Office Address Office No. 2, Building No.1, New MHADA Complex, Near PMGP Colony Off Mahakali Caves Road, Andheri-East, Mumbai (Maharashtra) India Pin - 400093 Telephone : +91-22-28347425 Fax : +91-22-28228142 Email : [email protected] Contact Persons Chandni Sahgal Managing Proprietor & Chief Consultant Mobile : +91-9820075332 Email : [email protected] Ravi Jain Project Associate Mobile : +91-9867635868 Email : [email protected] Shirish Bhakare Project Associate Mobile : +91-9820432499 Email : [email protected]
Contact Us