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RVO.nl |Kansendossier Engineering Industry in India - Chennai
Pagina 2 van 15
Inhoudsopgave
Inhoud
1.1 Introduction 3
1.2 Heavy Engineering 4
1.3 Automotive Industry 4
1.4 Light Engineering 5
1.5 Engineering Industry in the Chennai Region 5
1.6 Government Policies 6
1.7 Trends and Opportunities 7
1.8 Opportunities for Dutch Companies 7
1.9 Future Outlook 8
1.10 Trade Fairs 8
1.11 NBSO Chennai 9
1.12 Bijlage 10
Colofon 14
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ENGINEERING INDUSTRY IN INDIA
1.1 Introduction
The Indian Engineering sector has witnessed a remarkable growth over the last few
years driven by increased investments in infrastructure and industrial production.
The engineering sector, being closely associated with the manufacturing and
infrastructure sectors of the economy, is of strategic importance to India’s
economy. Today, India has a diversified industrial machinery/capital base
competent of catering to complex requirements and demands for a wide variety of
industrial machinery. Growth in the sector is driven by various sub-sectors such as
infrastructure, power, mining, steel, automotive, oil and gas, refinery and consumer
durables.
The Indian government has appointed the Engineering Export Promotion Council
(EEPC) to be the apex body in charge of promotion of engineering goods, products
and services from India. India exports transport equipment, capital goods, other
machinery/equipment and light engineering products such as castings, forgings and
fasteners to various countries of the world.
Capital goods and engineering turnover in India is expected to reach US$ 125.4
billion by 2017 from US$ 57.6 billion in 2012, while the electrical equipment market
size is forecasted to touch US$ 105 billion by 2022 from US$ 24.2 billion in 2011.
Also, the Indian telecom equipment market is expected to reach US$ 37 billion by
2020 from US$ 16 billion in 2011.
The Indian engineering sector is divided into two major segments - heavy
engineering and light engineering. Indian engineering exports stood at US$ 62.3
billion in the financial year ending in March 2014, registering a compound annual
growth rate (CAGR) of 10.8 per cent during the period 2008-14. A third category is
the automotive industry. The automotive industry is mentioned separately, though
it normally comes under heavy engineering, due to its large presence in India.
The Government of India has de-licensed the engineering industry and 100 per cent
foreign direct investment (FDI) has been permitted in the sector. The government
has also eliminated tariff protection on capital goods and reduced custom duties on
a range of engineering equipment. It launched the National Manufacturing Policy
with the aim of enhancing the sector's share in gross domestic product (GDP) to 25
per cent within a decade and creating 100 million jobs by 2022.
Demand for machine tools from the capital goods sector (especially automobile and
textile industries) is projected to remain high. Considering the industry's demand
for higher productivity, superior precision and accuracy, as well as low-cost
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manufacturing solutions, computer numerically controlled (CNC) machine tools are
set to be in greater demand.
1.2 Heavy Engineering
The engineering industry in India manufactures a variety of products, with heavy
engineering goods accounting for majority of the production. Most of the leading
players in the heavy engineering goods segment manufacture high value heavy
engineering goods using high technology. There is a small unorganized sector which
manufactures low technology products and is also involved in assembly of imported
components. The heavy engineering sector has many sub-sectors and the following
play a major role:
Machine tools
Textile machinery
Cement machinery
Material handling equipment
Plastic processing machinery
Dies, moulds and tools
Process plant equipment
Earth moving and construction
Rubber machinery
Sugar machinery
Paper & packaging machinery
1.3 Automotive Industry
Currently, there are 16 manufacturers of passenger cars and multi-utility vehicles, 13 manufacturers of commercial vehicles and 16 manufacturers of two-wheelers and three-wheelers
Total production in the automobiles sector stood at over 20 million units. The auto
components industry has more than 500 companies in the organised sector and about 10,000 entities in the unorganised sector. The industry’s turnover was around USD 35.1 billion. Agricultural tractors dominate the agriculture machinery sector. The Indian tractor industry is the world’s largest and accounts for one-third of the global production,
and is the cheapest producer world over providing room for more exports in tractors. More than 250,000 tractors are manufactured every year by 13 manufacturers. The following are the three main subsectors in the automotive industry:
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Passenger and utility vehicles
Auto components
Agriculture machinery
1.4 Light Engineering
The manufacturers of light engineering goods use medium to low-end technology.
The entry barrier is low, owing to relatively lower requirement of capital and
technology. This segment is characterized by dominance of small and unorganized
players, which manufacture low value-added products. However, a few medium and
large scale firms produce high value-added products. This segment is also
characterized by small capacities and high level of competition. The light
engineering sector comprises of the following sub-sectors:
Castings and forgings
Medical and surgical equipment
Industrial fasteners
Miscellaneous engineering products like pumps, motors, valves, filters,
pipes, tubes, etc.
Roller bearings
1.5 Engineering Industry in the Chennai Region
The region covered by NBSO Chennai has attracted many large engineering
companies from all over the world. This is largely due to the fact that the
availability of technical educational institutions and the availability of a large pool of
technically qualified persons is the highest in the region in India. Large Dutch
companies like Philips and Shell set up their Innovation and R&D organisations in
the region.
Chennai houses the automobile manufacturing giants in the country. More than
65% of heavy vehicles produced in the country, such as cars, buses, lorries, trains
and bicycles, are produced in Chennai, and it is referred to as the Detroit of Asia.
The manufacturing units of BMW, Flextronics, Motorola, Dell, TVS, Mitsubishi, Ford,
Hyundai, Nokia, Nissan, Renault, Royal Enfield, Hindustan Motors, Daimler and
Ashok Leyland are based out of Chennai. Chennai ranks first in producing heavy
vehicles. Other large engineering companies in Chennai include Gamesa, Schneider
Electric, FL Smidth, Lincoln Electric, Ingersoll Rand, Timken and Saint Gobain.
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Chennai has a wide variety of engineering companies in sectors such as
automobiles, auto components, electrical produtcs, petrochemicals, forgings, wind
turbines, etc.
Bangalore, the capital of Karnataka, is home to several public sector undertaking
aircraft companies, such as Hindustan Aeronautics Limited (HAL), HMT Hindustan
Machine Tools, Bharat Heavy Electronics Limited (BHEL), National Aeronautics
Limited and also Indian Space Research Organization (ISRO). While Bangalore is
India’s largest aerospace hub, it is also home to many other engineering
companies, especially in the automotive, machine tools and earth moving
equipment industry.
1.6 Government Policies
The Indian Government’s focus on promoting manufacturing through its “Make in
India” campaign, developing infrastructure in a big way and opening up the defence
sector for private Indian companies and foreign companies will boost the growth of
the engineering industry in a big way. The engineering sector attracts around 35
percent of the total foreign investment into India. Continued growth of
manufacturing, and favourable regulatory policies will further propel the
engineering sector’s growth. Some of the initiatives taken by the Indian
Government to boost the engineering sector are:
The engineering sector has been de-licensed and 100 percent foreign direct
investment (FDI) has been permitted
Foreign technology agreements are allowed under the automatic route
Tariff protection of capital goods has been removed
Customs duties on a range of engineering goods have been reduced
The Indian Government’s emphasis on boosting power production will
enhance growth in the electrical industry
Huge infrastructure projects promoted by the Indian Government such as
the Golden Quadrilateral and the industrial corridors will give a tremendous
push to the engineering industry
The Government has approved the setting up a number of Special Economic
Zones(SEZ) for the engineering sector across the country and the SEZs will
provide incentives in terms of tax, customs duties and infrastructure
facilities
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1.7 Trends and Opportunities
Trends in the Indian engineering industry are clear. The industry is diversifying and
expanding. Large infrastructure and power projects are bound to give a boost to
the sector. Rising domestic competition is driving companies to focus on improving
their capabilities. Many are becoming quality conscious and are upgrading their
technology in line with global requirements. More than 2,500 firms in the
engineering sector have ISO 9000 accreditation. Companies are increasingly
focusing on R&D and product development. With 100 per cent FDI allowed through
the automatic route, major international players such as Cummins, ABB and Alfa
Laval have entered the Indian engineering sector due to growth opportunities.
Entry of new players has raised the industry’s competitiveness. New opportunities
are coming up in the areas of Defence, Civil Nuclear Sector, Auto Components,
Power, Material Handling Equipment, Machine Tools and Aerospace.
1.8 Opportunities for Dutch Companies
Dutch companies have a lot of opportunities in the expanding Indian engineering
market. Some of the areas where Dutch companies can explore, export and invest
in the Indian engineering sector are as follows:
Infrastructure: Construction, engineering, machinery and equipment
supply, planning and design
Power: Technology transfer, equipment supply, consultancy
Defence: R&D, equipment supply, technology transfer
Automotive components: Design, R&D
Material handling equipment: Supply of equipment, technology transfer,
local manufacture
Machine tools: Supply of equipment, machinery, technology transfer
Process Industry: Design, technology transfer, supply of equipment and
machinery, local manufacture
Medical and surgical equipment: Supply of high-tech equipment, technology
transfer, local manufacture
Agriculture machinery: Supply of dairy, poultry, horticulture and food
processing machinery and equipment, technology transfer, R&D and local
manufacture
Aerospace: Design, R&D, supply of components and local manufacture
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1.9 Future Outlook
The engineering sector is a growing market largely due to government spending,
favourable government policies and new investments in the areas of infrastructure
development, power projects, metals, oil and gas, petrochemical industries,
defence, aerospace and other sub-sectors of engineering. In addition, increased
industrial and manufacturing growth will boost growth in the engineering sector.
Current spending on engineering services is projected to increase to US$ 1.1 trillion
by 2020. With development in associated sectors such as automotive, industrial
goods and infrastructure, coupled with a well-developed technical human resources
pool, engineering exports are expected to touch US$ 120 billion by 2015. Also, the
Union Budget 2014-15 has allocated funds for several infrastructure projects which
are further expected to provide a boost to the engineering sector.
Emerging trends like outsourcing of engineering services provide opportunities for
growth. Engineering and design services such as new product design, product
improvement, maintenance and designing manufacturing systems are increasingly
being outsourced to Asian countries like India. It is estimated that by 2020, India
can be a USD 40 billion market for engineering outsourcing services. All these
together provide many opportunities for the Indian engineering sector.
1.10 Trade Fairs
Since the engineering industry has a wide variety of sub-sectors, the trade fairs are
more sector specific and there are very few general engineering fairs. Listed below
are some of the major trade fairs related to the engineering industry and its sub-
sectors:
1. International Engineering Trade Fair – 2017 – This is India’s largest
engineering trade fair and is held in New Delhi once in two years. The latest
was held in February 2015. For more details, you can visit the website:
http://www.ietfindia.in/
2. Automobile Engineering Show – 07-09 July 2015. Organised by Messe
Frankfurt in Chennai.
Website:http://automotive-engineering-
show.in.messefrankfurt.com/Chennai/en/exhibitors/welcome.html
3. Foodpro 2015 – 28-30 August in Chennai. It is a trade fair for food
processing machinery and equipment and is organised by CII.
Website: http://www.foodpro.in/
4. International Railway Equipment Exhibition IREE 2015 – 14-16 October
2015 in New Delhi. This is a trade fair for railway equipment and is
organised jointly by the CII and Indian Railways.
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Website: http://www.ireeindia.com/
5. Urban Mass Transport Expo – 14-16 October in New Delhi. This is an
exhibition that focuses on technology related to urban transport and is
organised by CII.
Website: http://10times.com/utme
6. EXCON 2015 – 25-29 November 2015 in Bangalore. This is India’s largest
exhibition related to the construction machinery and equipment organised
by CII.
Website: http://www.excon.in/aboutevent.php
7. IMTEX 2016 – 21-26 January 2016 in Bangalore. This is India’s largest
trade fair related to machine tools, metal forming technologies, welding,
etc. It is organised by the Indian Machine Tool Manufacturers Association
(IMTMA). Website: http://www.imtex.in/
8. ELECRAMA 2016 – 13-17 February 2016 in Bangalore. This is India’s largest
trade fair related to the electricity industry, technologies and systems and
is held once in two years.
Website: https://elecrama.com/default.html
9. ACREX 2016 – 25-27 February 2016 in Mumbai. This is an exhibition on a
wide range of engineering services, equipment and the cold chain sector.
Website: http://www.acrex.in/
10. India Aviation 2016 – 16-20 March 2016 in Hyderabad. This is India’s
largest civil aviation exhibition and is held once in two years. It is organised
by FICCI and the Indian Ministry of Civil Aviation.
Website: http://www.india-aviation.in/
1.11 NBSO Chennai
NBSO Chennai is based in the South India and looks after the southern states of
Tamilnadu, Karnataka, Kerala and Pondicherry. NBSO Chennai will be happy to
assist Dutch engineering companies that are looking to do business in the region.
We can provide you with information, assistance, finding partners, organizing visits
or participation in trade fairs and conferences, meetings with local companies,
chambers of commerce, branch association, etc. Please contact us by e-mail or
telephone:
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V. Vijay Kumar, Chief Representative : [email protected]
P.R. Meenakshi, Deputy Representative : [email protected]
General : [email protected]
Tel: +91 44 4215 8388
Address:
Netherlands Business Support Office, Chennai
203, Sigma Wing, Raheja Towers
177, Anna Salai
Chennai – 600 002
India
1.12 Bijlage
Ondersteuning vanuit RVO
1. Missievouchers SIB
Subsidies & Financiering
Wilt u als 'startende' exporteur een (nieuwe) buitenlandse markt gaan verkennen?
Heeft u behoefte aan meer inzicht, contacten en een daadwerkelijke oriëntatie op
een voor u nieuwe markt? Dan is de missievoucher wat voor u. De handelsmissie of
collectieve beursinzending dient op de agenda van het netwerk Internationaal
Ondernemen te zijn aangemeld en open te staan voor deelname. Vouchers kunnen
niet worden aangevraagd voor beurzen in het buitenland waarbij geen collectieve
inzending door een Nederlandse organisator plaatsvindt.
2. Dutch Good Growth Fund (DGGF)
Financiering voor (mkb-)ondernemers die willen investeren in opkomende markten
en ontwikkelingslanden. De investeringen of export moet bijdragen aan de
ontwikkeling van het land.
3. Government-to-government (G2G) en Knowledge-to-knowledge (K2K)
Samenwerkingsprogramma van Nederlandse en buitenlandse overheidsorganisaties
en kennisinstellingen. Doel is het scheppen van gunstige voorwaarden voor
ondernemers om zaken te doen op markten in het buitenland.
4. Matchmakingfaciliteit Ontwikkelingslanden (MMF)
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Samenwerkingsprogramma om ondernemers in ontwikkelingslanden en opkomende
markten in contact te brengen met Nederlandse ondernemers.
5. Netherlands Management Training Programme (NMTP)
Samenwerkingsprogramma voor studie en stage van managers en ondernemers
met als doel internationale zakenrelaties op te bouwen.
6. Partners for International Business (PIB)
Samenwerkingsprogramma en (diplomatieke) ondersteuning voor groepen
bedrijven en kennisinstellingen die gezamenlijk een buitenlandse markt willen
betreden. In een samenwerkingsverband doen minimaal 3 Nederlandse bedrijven
mee.
7. Subsidieregeling voor demonstratieprojecten, haalbaarheidsstudies en
kennisverwerving (DHK)
Subsidie voor demonstratieprojecten, haalbaarheidsstudies of kennisverwerving
door (mkb-)ondernemingen die willen uitbreiden naar opkomende markten of
ontwikkelingslanden.
8. DRIVE
Wilt u bijdragen aan de totstandkoming van publieke infrastructuur in een
laag- of middeninkomensland? Stimuleert u met deze opdracht een goed
ondernemingsklimaat en de ontwikkeling van de private sector in het land?
Dan kunt u in aanmerking komen voor een financiële bijdrage. Hiermee
kunt u de aanbestedende overheid van een ontwikkelingsland een
aantrekkelijk financieringsaanbod doen.
Tools voor ondernemers
1. Starters International Business
Met Starters International Business helpt het ministerie van
Buitenlandse Zaken bedrijven die de stap willen maken naar markten in
het buitenland.
Door export kunt u uw risico’s beter spreiden. Maar hoe pakt u dat goed
aan? Wat zijn uw sterktes? Welke markten bieden kansen? En wat moet
u doen om die kansen te pakken? Met Starters International Business -
Go Abroad, Well Prepared komt u tot een duidelijk stappenplan
waarmee u direct aan de slag kunt.
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2. Informatie op Maat
De Rijksdienst voor Ondernemend Nederland (RVO.nl) en het netwerk
van ambassades, consulaten en Netherlands Business Support Offices
(NBSO's) bieden u via Informatie op Maat een informatiedossier of
landenvergelijking met concrete, betrouwbare en actuele informatie.
3. Zakenpartnerscan
Wij kunnen de zakenpartnerscan in ruim 60 landen voor u uitvoeren. U
kunt voor meerdere landen een zakenpartnerscan aanvragen. Hiervoor
moet u ingeschreven staan bij de Nederlandse Kamer van Koophandel
(KvK). Wij kunnen u helpen bij het vinden van betrouwbare
zakenpartners als u weet:
•in welk land u zakenpartners zoekt;
•of u een handelsagent, importeur, distributeur of productiepartner
zoekt;
•hoeveel (financiële) middelen en tijd u heeft om uw zakendoelen in het
land te behalen.
4. Buitenlandnetwerk
Het buitenlandnetwerk ondersteunt u bij internationale handel,
investeringen, onderzoek en samenwerking. In vrijwel elk land ter
wereld zijn één of meer Nederlandse vertegenwoordigingen te vinden.
De verschillende onderdelen van het buitenlandnetwerk werken nauw
samen.
5. Financieringsadvies
Als mkb'er heeft u soms behoefte aan een onafhankelijke
sparringpartner om over uw plannen te praten. Iemand die u de weg
wijst. Met verstand van de actuele overheidsregelingen én ervaring in
de commerciële kredietwereld. Iemand die kritisch kijkt naar uw
plannen en suggesties doet om verder te komen.
6. App NL Exporteert
http://www.rvo.nl/onderwerpen/internationaal-ondernemen/hulp-bij-zakendoen-het-buitenland/nl-exporteert-wijzer-export
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7. Entrepreneurial Minds www.entrepreneurialmindsindia.nl
Op 5 juni 2015 organiseerde de Nederlandse ambassade in New Delhi ter gelegenheid van het bezoek van MP Rutte aan India een interactieve “talkshow” met Nederlandse en Indiase Entrepreneurial
Minds. Onder begeleiding van een bekende Indiase moderator en in aanwezigheid van een select publiek, vertelden zij in pitchvorm over hun kleine en middelgrote initiatieven en over de manier waarop zij
hebben weten in te spelen op wat NL en India elkaar te bieden hebben. Talloze private initiatieven toonden een positief beeld van de mogelijkheden in en met India, waarbij creativiteit, (sociaal) ondernemerschap, doorzettingsvermogen en geduld vooralsnog sleutelwoorden blijven. De website http://www.entrepreneurialmindsindia.nl stelt deze profielen ten toon en zal op termijn aangevuld worden met nieuwe profielen en
met praktische wenken over zaken doen in India.
8. Portal Ondernemen in Ontwikkelingslanden http://www.ondernemeninontwikkelingslanden.nl/land/india
9. Portal Internationaal Ondernemen http://www.internationaalondernemen.nl/
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Colofon
Dit is een publicatie van:
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Prinses Beatrixlaan 2 / 2595 AL den Haag
Postbus 93144 / 2509 AC Den Haag
T +31 (0)88 0424242
www.rvo.nl
© RVO.nl | juni 2015
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