THE INDIAN METAL CUTTING MACHINE TOOL … production of Standard CNC machine Tools. Rise of Auto Sector, Declining Custom Duty Protection, Lowering of Entry Barriers Fall of HMT from

Market Research Report on

THE INDIAN METAL CUTTING MACHINE

TOOL INDUSTRY

Preface

2

Indian Machine Tool Manufacturers Association (IMTMA) is the apex body of machine tool industry in India . The

association aims to enhance the competitiveness of Indian industry through its various initiatives on productivity,

quality enhancement and technology exposures to Indian machine tool manufacturers and end-users.

As a part of various initiatives IMTMA has commissioned a market research to study the market and technology

adoption levels in cutting technology in Indian market.

In this regard, they have engaged BDB India Private Limited to carry out a Market Research Study to evaluate the

market and technology adoption levels in metal cutting technology in India for the products under the scope of the

study.

The Study has transformed to a detailed report on market dynamics and technology trends in short, medium and

long term for Indian market.

The market forecasting focused on market size estimation, product type wise demand assessment, end user

segment wise share and preference, need gaps and pain areas .

BDB India Private Limited was set up 2 decades ago with the objective of providing world class management inputs

to engineering businesses in India. Today, BDB offer business consulting including market research services to most

market savvy organizations worldwide.

BDB has offered market research inputs for setting up new businesses and in expanding existing ones. BDB has

assisted in identifying new opportunity areas and in evaluating their short, medium and long term commercial

potential. BDB has developed business analysis expertise in industrial products, systems & consumables, consumer

durables and medical equipment.

Continued...

3

BDB also has a division (BDB QSAMM) that assists our customers to analyze and establish customer satisfaction

indices.

BDB specializes in the following :

- Analysis for estimating the market size and potential

- Technology and emerging trends

- Competition analysis

- Distribution channel analysis

- Market entry strategies

- Partner identification

The study has been successfully completed and its output is being presented in the form of this report.

The findings of the study are presented in this report, and its contents are strictly confidential and meant for

the exclusive use of IMTMA.

The statements and analyses in this report are based on the information and opinion obtained during field

investigations and from various published sources.

Contents

4

Page No

Preface

CHAPTER 1 PROJECT BACKGROUND 5

Objectives of the study 6

Scope of the study 7

CHAPTER 2 EXECUTIVE SUMMARY 11

CHAPTER 3 CONCLUSIONS 42

CHAPTER 4 PRODUCT WISE ANALYSIS 48

Electric discharge machines 49

Turning centers 59

Machining centers 84

Milling machines 108

Grinding Machines 120

Tool grinding machines 131

SPMs 142

CHAPTER 5 TRENDS IN THE END USER SECTORS 150

Automotive 151

Auto components 157

General Engineering 165

Heavy Engineering 170

Aerospace & Defence 176

Die & Mould 182

APPENDIX

1. PROJECT BACKGROUND

- OBJECTIVES OF THE STUDY

- SCOPE OF THE STUDY

Objectives of the study

6

aa Market size estimation for Metal cutting machines and category wise forecast

of demand on short, medium and long term basis.

bb To report on sector wise demand for metal cutting machines and trends related

to adoption of efficient technologies

cc To project the demand over the next 5 years based on the growth of the end

user sectors

dd To report on competitiveness of Indian Machine Tool Industry and recommend

key areas of improvement, end user perceptions on Indian suppliers and

technology gaps

ee To develop a detailed report to guide Indian machine tool manufacturers about

the road map of the industry and enable members to take informed decisions

Scope of the study

7

aa Product categories under focus

Metal Cutting Machines

- CNC Turning centers, Conventional Lathe Machines, Vertical Machining Centers,

Horizontal Machining Centers, Grinding Machines, EDMs, SPMs and Tool

Grinding Machines

bb Geographical regions under focus

India

- Prominent manufacturers, end users and institutions & manufacturing clusters

relevant to the study have been contacted to understand their views and

perception on market

Products Covered under metal cutting machines

Product Description Product Covered

Metal Cutting Machines

EDMs √

CNC Turning Centers √

Conventional Lathe Machines √

Vertical Turning Center √

Vertical Machining Centers √

Horizontal Machining Centers √

Milling Machines √

Grinding Machines √

Tool Grinding Machines √

Heavy Machineries √

SPMs √

8

Heavy machineries category has been considered under milling machines and SPMs

Study Methodology

9

The study was carried out with a multi pronged approach involving stakeholders like

end users, domestic manufacturers of machine tool, importers, component suppliers

key industry bodies and industry experts of the user industries.

Analysis regarding the total market potential and the product wise trends were sourced

from the domestic manufacturers, importers and import export data. Where as

discussions with end users were carried out to understand types of machinery used,

source, technology trends prevailing and the growth potential of the metal cutting

machinery based on their growth trends. The end users provided the vital inputs which

led to analyzing their buying behaviour.

A detailed analysis of the customs data on imports was carried out to understand the

extent of machine tool imports into the country and sources for such procurement;

information pertaining to imports of new and used machines were separately analyzed

to arrive at meaningful inputs for the industry.

A representative sample of stakeholders has been included in key demand and

manufacturing clusters covering companies from small, medium and large scale

categories.

Discussions with various stake holders were carried out through an intensive primary

research exercise involving personal meeting between BDB analysts and respondents.

Market Forecasting : Approach

10

Approach - Overview

Methodology :

Last 10 years historical data on metal cutting machinery

consumption, macro economic indicators and respective

user sector growth has been mapped

The forecast for the macro economic indicators and user

sector growth has been developed based on the economy

and industry reports and discussions with end users

Correlation between macro economic indicators, end user

sector growth and metal cutting machinery consumption

has been used to forecast the projected consumption of

metal cutting machinery

The results have been corroborated with manufacturers

and component suppliers based on their judgment and

experience

Important factors that could cause actual

results to differ from our expectations include,

among others:

-- Changes in political and social conditions in

India;

-- Extraordinary changes in monetary & fiscal

policies of the Government of India, inflations,

foreign exchange rates, unanticipated

turbulence in interest rates;

-- The performance of the financial markets in

India and globally;

-- Occurrence of natural disasters or calamities

affecting the economy

Assumptions :

Growth in metal cutting machinery is proportional to the user industry growth

Absence of any major technological change in machining amongst the user industry

No major change in the value of the metal cutting machinery currently used

2. EXECUTIVE SUMMARY

Overview of Indian Economy

12

8.6% 9.3%

6.2%5.0% 4.7%

11.3%9.7%

2.7%

1.0% 1.0%

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

India GDP Growth (%) Manufacturing GDP Growth (%)

The performance of the Indian economy over

the past two years especially the

manufacturing output has been

disappointing.

The recessionary pressure of 2012-13 have

severely impacted the industrial activity within

India.

The Index of industrial production has seen a

negative growth predominantly due to the

slowdown in the manufacturing sectors

A large current account deficit, high domestic

inflation and a fiscal stance that was widening

compounded the problems facing the

economy

Low growth and weak business confidence

feed into each other in a negative feedback

loop

However the economy is expected to recover

and see a GDP growth of around 5.7% for the

year FY 2015 (2014 - 2015)

152.9

165.5

170.3172.2

166.55%

8%

3%

1%

-3%

-4%

-2%

0%

2%

4%

6%

8%

10%

140.0

145.0

150.0

155.0

160.0

165.0

170.0

175.0

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 (Apr - Nov)

Index of Industrial production (IIP) IIP Growth (%)

Source : Central Statistics Office, World Bank

Source : Department of Economic Affairs

FY 2010 indicates 2009-2010

Overview of Indian machine tool industry

13

India is the 16th largest manufacturer of machine tools in the world as per Gardner’s world consumption report 2013.

The Indian machine tool industry consists of around1000 manufacturing units covering large, medium and small

companies. Domestic manufacturers account for about 36% of consumption within the Indian machine tools market.

Since 2002, the Indian engineering sector especially the auto and auto ancillary sector has witnessed increased

investments as global engineering giants have started outsourcing from India and have started to establish their

manufacturing facilities based in India. This led to a spurt in demand for machine tools in India. Now the Indian machine

tool industry is in a position to export the general purpose and standard machine tools to even industrially advanced

countries.

The recessionary pressure of 2012-13 have severely impacted the industrial activity within India.

Decline in turnover is due to the slowdown of industrial activity in the country particularly in the

automotive, infrastructure, heavy engineering and construction industries as a result the growth of the Indian machine

tools industry was hampered. However the recent revival in the index of industrial production can be construed as a

harbinger of growth for the Indian machine tools industry.

Indian Machine Tool Industry Journey

14

Post war to independence

Start of the ‘Planned Economy’

Cooper, Scottish India, ABMTM, Kirloskar etc

Louden, Ward, Herbert, Jones + Shipman Entry of First Wave of Foreign Technology

Share of Indian Machine Tool Industry ~ 51 %

1950s

1953, Birth of HMT. Oerlikon Tie up

Start of era of severe shortage of Foreign Exchange

Emphasis on Import Substitution


1960s

Era of Collaborations – HMT-Peggard, PMT - Traub, Cooper – Pfanter

Horizontal Expansion in Product Range

Version Presses (HMT), Gear Cutting Machines (Premier + HMT) SPMs’ (XLO)

Birth of Ancillaries

Dominant public sector

Highly Protected. Tariff (>85%) and non Tariff barriers


1970s

Start of Technology Denial Regime, Post Pokhran I

Era of Joint working arrangements – Defence Sector major buyer. Praga-Mitsubishi, LMW –

Mori Seiki, Cooper – Hitachi, PMT – Voumard, Mysore Kirloskar, Murata Warner & Swassey

Emergence of First OGL List (Only Machine Tool items). Start of declining Non Tariff Barriers

Era of Technocrats - Ace Designers, Parishudh Machines, Micromatic Grinding, Pragati,

Lokesh etc


1980s

Over Diversification - Severe Technology Denial regime sets in, Post Pokhran II

Long tailed Industry structure (20% of companies produced 80% of Machine Tools)

No major investment by Machine Tool Manufacturers

Over Protected & uncompetitive - Peak Custom Duty rate mounts to 150% in 1991, Emergence

of new, adventurous Entrepreneurs: Galaxy, Jyoti, Askar Mikrons


Indian Machine Tool Industry Journey

15

1990s

Advent of Open Market Economy, Era of high GDP Growth

Volume production of Standard CNC machine Tools. Rise of Auto Sector, Declining Custom

Duty Protection, Lowering of Entry Barriers

Fall of HMT from numero uno, demise of Public Sector dominance

Poor development of Sub Contract Structure

Technology Transfer route dries up, Demise of Joint Ventures

Indian Share falls dramatically to 34 % from 66 %

Post Y2K

Globalization – Jyoti / Huron, Batliboi / Quickmil, BFW / Matec, Ace / China

High Growth (20 -30%), Capacity Build up, scaling up, More of the same

Invasion of Foreign companies through – Sales & Service Centres, Tech Centres, Assembly

outfits

Indian share falls to 20%, recovers to ~ 30%.

Company 1993 – 94 (Rank) 2011 – 12

HMT 1 Ace Designers

Mysore Kirloskar * 2 BFW

BFW 3 PMT

Electronica 4 AMS

Telco (MTD) * 5 LMW

LMW 6 HMT

Batliboi 7 ISGEC

Premier 8 Prmier

Godrej * 9 MGTL

PMT 10 KENNAMETAL

Praga ** 11 Electropneumatics

Electropneumatics 12 Electronica Machine Tools

ISGEC 13 ITL

Ace Group 14 TAL

Ema India * 15 Batliboi

Start of second decade

of new millennium

In 2000, India was 18th in

Production and in

2012, India ranked 13th in

the world

In 2000 India was 11th in

consumption, In 2011 India

was ranked 7th

Indian Machine Tool

Industry’s impressive

growth in the new

millennium has not

allowed it to be among top

5 machine tool producers

in the world

* As on today these companies not in Machine Tools business

** Praga is merged with HMT

Overview of metal cutting machines in India

16

The current market size of the metal cutting industry stands at INR 6750 crores, off which the domestic

production makes for around 45% of the total consumption.

The Indian players have grown rapidly over the last ten years and now have their presence across all

product categories.

High value machines dominate the import market.

There are three major clusters of countries from which India imports machines:

-- Spain and Switzerland forming the high average value, low volume segment;

-- Japan, Germany, Italy and South Korea primarily operating in the high to medium

value, high volume segment;

-- China, Taiwan and USA forming the low value high volume segment.

India imports four critical components viz., CNC systems, ball screws, precision bearings and LM

guides which makes for around 40% of the total cost of a typical CNC Machine tool. India also imports

other major sub systems like , APC’s, Rotary indexing tables, motorized spindles etc.

Additionally, lack of development in high precision, multi-axes machines is currently hindering the rapid

growth in key strategic industries such as the nuclear and defense sectors. Due to India not being a

signatory to the NPT and CTBT, it cannot import these machines and hence it is imperative for the

country to develop these technologies at the earliest.

The consumption in this industry is primarily driven by the automobile sector which accounts for nearly

40% of the market, die and mould and industrial machinery are the other key user sectors in this

industry.

Manufacturing location of major manufacturer of metal cutting & metal

forming machinery

Ludhiana

(Punjab)

Rajkot

(Gujarat)

Pune

(Maharashtra)

Bangalore

(Karnataka)

Coimbatore

(Tamil Nadu)

Bangalore

This cluster started as a policy initiative. Government of

India set up HMT in 1952 who in turn set up ancillary units.

The expansion of Public Sector Units in the area and later

advent of the auto component and precision engineering

industries saw this cluster flourish.

There are about 150 units for machine tools and allied fields

and contributes nearly 60% to Indian machine tool output.

Companies like BFW, Ace

Designers, HMT, Kennametal, Bosch and Makino are

located in Bangalore .

Most of the machine tool agents/Dealers are located in

Bangalore. Bangalore is the main location considered while

setting up a technology centre.

Pune

It is the oldest cluster established by the British during the

Second World War. Later, onset of Engineering

multinationals and then rise of the Automotive industry gave

this cluster great internal strength. There are about 50 machine tools and allied equipment manufacturers in Pune. Most of the retrofitting companies

(Individual service companies) are located in Pune.

Companies like PMT Machine, TAL Electronica, Electropneumatics, Premier, PARI etc. are located in Pune

NCR region

Continue...

Rajkot

Traditionally a centre of turned parts, the cluster grew due to high demand from diesel engine industry. For long

languishing as craftsmen, Rajkot is at the nascent stage of the genuine engineering phase. Rajkot has emerged as the

second largest base for manufacture of CNC machine tools after Bangalore and overtaking Pune. Jyoti and

Manpower CNC Machines are the most prominent suppliers based in Rajkot.

NCR:

NCR is a cluster with a few large companies like ISGEC, Micromatic, Parishudh, SRB Hindustan Hydraulics etc.

Ludhiana

This cluster was developed as a natural cluster. Craftsmanship and reverse engineering capabilities coupled with

demand from a thriving bicycle and hand tool manufacturing segments, the cluster grew rapidly.

Dotted with tiny units, the cluster has around 400 units covering nearby areas such as Jalandhar and Batala producing

low end workshop machinery for small and tiny sectors and providing limited service (mechanical service, repair etc.)

Marshall machines and Rattan Hammers are the most prominent suppliers in this region.

Coimbatore

Essentially a domain of a few large companies, this is a modern cluster with high standards in Quality & Technology.

Around 20 companies represent this close knit cluster which caters to automotive sector mainly. LMW is located in

Coimbatore

Market demand of metal cutting machines in India for FY 2012 - 13

19

Total market demand of products under study for

FY 2012 - 13INR 6650 - 6870 Cr

Product NameTotal Market

(In Units)

Total Market

(In Rs Cr)

Turning Centers 7600 - 7800 1800 - 1825

Vertical Machining Centers 3750 - 3850 1360 - 1400

Horizontal Machining Centers 760 - 800 1125 - 1145

Grinding Machines 2700 - 2740 920 - 940

Milling Machines * 3210 - 3330 495 - 530

SPMs 320 - 340 360 - 400

Lathes* 2100 - 2150 365 - 385

EDMs 680 - 730 125 - 135

Tool Grinding machines 350 - 380 100 - 110

Total 21,470 - 22,120 6650 - 6870

Product wise estimated market for FY 2012 - 13 Product wise estimated market for FY 2012 - 13

21,470 - 22,120 6650 - 6870

Note : Market size indicates the total consumption in

India (Imports + Production – Exports)

Source : DGFT & BDB Analysis

Turning centers & Machining centers contribute to

60- 70% of the total market for metal cutting machines

35%27%

17%21%

4% 17%13%

14%15%

7%1%5%10%6%

In Units In Rs Cr

Turning Centers VMCs

HMCs Grinding Machines

Milling Machines SPMs

Lathes EDMs

Tool Grinding machines

3%5%

In the milling and lathes segment the study has only considered the organized

market and the light duty machines manufactured by the unorganized segment is

excluded from the analysis

5%

24%17%

22%18%

17%

10%

13%29%

12%16%

7%

In Units In Rs Cr

HMCs Turning Centers

Grinding Machines VMCs

Milling Machines Lathes

SPMs EDMs


52%

34%

25%

30%

8%

10%

2%9%

2% 9%5%3%

In Units In Rs Cr

Turning Centers VMCsGrinding Machines SPMs HMCs LathesEDMs Tool Grinding machines Milling Machines

Market demand of metal cutting machines in India for FY 2012 - 13

20

Domestic Contribution for FY 2012-13 Import Contribution for FY 2012-13

Total market demand for metal cutting machines in India (in Units) : 21,470 - 22,120

Total market demand for metal cutting machines in India (in Rs Cr) : 6650 - 6870

11,710 - 11980 3020 - 3115 9760 - 10,140 3630 - 3755

Domestic manufacturers have a significant share in turning centers, vertical machining centers and Grinding Machines

Imports are dominated by horizontal machining centers, turning centers, grinding machines, vertical machining centers and

milling machines because of the more complex nature of the machines

6%9% 4%4.5%

Source : DGFT

Product wise domestic vis-à-vis import contribution for FY 2012-13

21

1800 - 1825 1360 - 1400 1125 - 1145 920 - 940 495 - 530 360 - 400 365 - 385 125 - 135 100 - 110

Total market for metal cutting machines in India (in Units) : 21,470 - 22,120

Total market for metal cutting machines in India (in Rs Cr) : 6650 - 6870


Indian Manufacturers have strong market presence in Turning Centers, VMCs, EDMs and SPMs;

however, product categories such as HMCs, Milling Machines and Grinding Machines are being imported in

high volumes

56%66%

23%32%

9%

78%

26%

63% 60%

44%34%

77%68%

91%

22%

74%

37% 40%

Turning Centers

VMCs HMCs Grinding Machines

Milling Machines

SPMs Lathes EDMs Tool Grinding machines

Domestic Import

Total Market

in

Rs Cr

52%

34%

25%

30%

8%

10%

2%9%

2% 9%5%3%

In Units In Rs Cr

Turning Centers VMCs

Grinding Machines SPMs

HMCs Lathes

EDMs Tool Grinding machines

Milling Machines

Domestic sale of metal cutting machines for FY 2012-13

22

Product

Domestic sales

In Units In Rs Cr

Turning Centers 5900 - 6000 1010 - 1020

VMCs 2800 - 2850 900 - 920


SPMs 270 - 280 280 - 300

HMCs 260 - 280 255 - 265

Lathes 510 - 530 95 - 105

EDMs 490 - 510 80 - 85

Milling Machines 410 - 430 45 - 50


Total 11,710 - 11,980 3020 - 3115

Total domestic sale of metal cutting machines (in Units) : 11,710 - 11,980

Total domestic sale of metal cutting machines (in Rs Cr) : 3020 - 3115

11,710 - 11,980 3020 - 3115

Source : BDB Analysis

6%9%

Major domestic manufacturers by product category

23

ProductProduction in Rs Cr

FY 2013Major Manufacturers

Turning Centers 1050 - 1070 Ace Designers, HMT, Jyoti CNC, LMW, Lokesh

VMCs 940 - 970Ace Manufacturing System, BFW, HMT, Jyoti CNC, Lokesh,

LMW, TAL

Grinding Machines 309 - 323Alex Machine Tools, HMT, Micromatic Grinding

Technologies, Parishudh Machine Tools, PMT Machine

Tools

SPMs 280 - 300Batliboi, BFW, Bosch, Esskay, HMT, Kennametal, Lokesh,

TAL

HMCs 269 - 283Ace Manufacturing System, BFW, HMT, Jyoti CNC, LMW,

Lokesh, TAL

Vertical Turning Centers 95 - 100 Ace Designers, BFW, Lokesh, TAL

Lathes 95 - 105 Askar, HMT, PMT

EDMs 82 - 89 Concord, Electronica

Tool Grinding Machines 60 - 65 HMT, Kennametal, TGT

Milling Machines 45 - 50 BFW, Batliboi, HMT

5%

24%17%

22%18%

17%

10%

13%29%

12%16%

7%

In Units In Rs Cr

HMCs Turning Centers

Grinding Machines VMCs

Milling Machines Lathes

SPMs EDMs


Import of metal cutting machines for FY 2012-13

24

Product

Import

In Units In Rs Cr

HMCs 500 - 520 870 - 880

Turning Centers 1700 - 1800 790 - 805


VMCs 950 - 1000 460 - 480

Milling Machines 2800 - 2900 450 - 480

Lathes 1590 - 1620 270 - 280

SPMs 50 - 60 80 - 100

EDMs 190 - 220 45 - 50


Total 9760 - 10,140 3630 - 3755

Total Import of metal cutting machines in India (in Units) : 9760 - 10,140

Total Import of metal cutting machines in India (in Rs Cr) : 3630 - 3755

5%5%

Source : DGFT

9760 - 10,140 3630 - 3755

Country wise import of metal cutting machines for FY 2012-13

25

CountryTotal Market

(In Rs Cr)

Japan 1165 - 1207

Germany 500 - 518

Korea 385 - 400

Taiwan 357 - 364

Italy 220 - 230

China 168 - 170

USA 175 - 185

UK 50 - 51

Others 610 - 630

Total 3630 - 3755

3330 - 3395 300 - 360

Others include countries like Singapore, Switzerland, Romania, Thailand, Poland, France, Sweden, Spain etc

Source : DGFT

33%

18%

13%

19%

11%

4%

10%

3%

5%

14%

5%

1%

5%

9%

1%

5%

16%26%

New Used

Japan Germany Korea Taiwan Italy

China USA UK Others

Total Import of metal cutting machines in India (in Units) : 9760 - 10,140

Total Import of metal cutting machines in India (in Rs Cr) : 3630 - 3755

Product wise - Country wise import of metal cutting machines for

FY 2012-13

26

Source : DGFT

Total import of metal cutting machines in India (in Units) : 9760 - 10,140

Total import of metal cutting machines in India (in Rs Cr) : 3630 - 3755

870 - 880 790 - 805 210 - 220 460 - 480 625 - 635 450 - 480 80 - 100 45 - 50 40 - 45Import in

Rs Cr

63%

19%

2%

40%

15% 15%

67%

10% 12%

19%

10%

8%

16%

10%15%

6%

5%

17%

8%

22%

25%

2%

14% 2%

1%

10%

20%

4%35%

3%

3%

14%

3%

1%

8%

8%

9%

1%

16%

1%

8%

6%

1%

5%

21%

25%

2%

5%

6%

3%7%

14%

1%

1%

14%

1% 6%

1%

3%

7%

17%25%

15% 17%

1%

45%49%

HMCs Turning

Centers

VTLs Grinding

Machines

VMCs Milling

Machines

SPMs EDMs Tool Grinding

Machines

Japan Germany Korea Taiwan Italy China USA UK Others

27

ProductMarket demand in

Rs Cr for FY 2013Major Manufacturers

HMCs 870 - 880Komastu NTC, Makino, Mazak, DMG, Mori seiki, MAG, Heller,

Doosan

Turning Centers 790 - 805 Mazak, Doosan, Hyundai, Takisawa, DMG

Grinding Machines 625 - 635 Cincinnati, Kent, Izumi, TOYODA, KOYO

VMCs 460 - 480 Makino, Mazak, FEELER, DMG, HAAS

Milling Machines 450 - 480 Manford, WMW, Saimp, Kent

Lathes 270 - 280Some of the brands observed are Tornos, Takisawa, WMW,

Daewoo, Esteem, Moriseiki

Vertical Turning Centers 210 - 220YOU Ji, Titan TMG Machine Tools, Hwachion, EMAG, Hyundai,

Komatsu

SPMs 80 - 100 Not Available

Tool Grinding Machines 40 - 45 Anca, Deckel, Walter, China Manufactures

EDMs 45 - 50 Sodick, Makino, AGIE CHARMILLES, MITSUBISHI, Chmer

Major imported brands by product category

Segment wise contribution for metal cutting machines for FY 2012-13

28

SegmentTotal Market

(In Rs Cr)

Auto Component 1645 - 1700

General Engineering 1150 - 1190

Auto OEM 970 - 999

Heavy Engineering 635 - 655

Defence & Aerospace 395 - 410

Die & Mould 365 - 375

Railway 105 - 110

Others 1385 - 1430

Total 6650 - 6870

Other segments include construction & mining, electronics, steel, forging, ship building and consumer durables

(Heavy Engineering - Turbines, Boiler, Power & energy, textile machinery, cement machinery, sugar machinery etc.

General Engineering - Pumps, Compressors, Valves, Motors etc)


Total market for metal cutting machines in India (in Units) : 21,470 - 22,120

Total market for metal cutting machines in India (in Rs Cr) : 6650 - 6870

25%

17%

15%

9%

6%

5%

2%

21%

Auto Component General Engineering Auto OEM

Heavy Engineering Defence & Aerospace Die & Mould

Railway Others


(Domestic Manufacturers)

29

Domestic manufacturers : As a percentage of total market in Rs Cr


42%

43%

41%

35%

35%

10%

30%

10%

18%

22%

22%

25%

25%

20%

25%

15%

20%

10%

19%

21%

21%

5%

10%

10%

3%

11%

7%

2%

2%

5%

12%

15%

6%

4%

2%

1%

1%

20%

10%

15%

11%

10%

9%

16%

16%

30%

13%

35%

Turning Centers

VMCs

HMCs

Grinding Machines

Tool Grinding Machines

EDMs

SPMs

Milling Machine

Auto OEM Auto Component General Engineering Heavy Engineering Defence & Aerospace Others

30


(Import)

Import : As a percentage of total market in Rs Cr


8%

8%

10%

35%

20%

10%

30%

10%

14%

12%

20%

25%

14%

20%

25%

15%

17%

12%

35%

21%

26%

5%

10%

10%

5%

15%

20%

2%

7%

5%

12%

15%

25%

25%

5%

1%

9%

20%

10%

15%

10%

16%

14%

30%

13%

35%

Turning Centers

VMCs

HMCs

Grinding Machines

Tool Grinding Machines

EDMs

SPMs

Milling Machine

Auto OEM Auto Component General Engineering Heavy Engineering Defence & Aerospace Others

38%

31%

28%

13%

-1%

-41%

42%

30%

-1%

-0.455

-0.45

-0.445

-0.44

-0.435

-0.43

-0.425

-0.42

-0.415

-0.41

-0.405

-0.4

-0.395

-0.39

-0.385

-0.38

-0.375

-0.37

-0.365

-0.36

-0.355

-0.35

-0.345

-0.34

-0.335

-0.33

-0.325

-0.32

-0.315

-0.31

-0.305

-0.3

-0.295

-0.29

-0.285

-0.28

-0.275

-0.27

-0.265

-0.26

-0.255

-0.25

-0.245

-0.24

-0.235

-0.23

-0.225

-0.22

-0.215

-0.21

-0.205

-0.2

-0.195

-0.19

-0.185

-0.18

-0.175

-0.17

-0.165

-0.16

-0.155

-0.15

-0.145

-0.14

-0.135

-0.13

-0.125

-0.12

-0.115

-0.11

-0.105

-0.1

-0.095

-0.09

-0.085

-0.08

-0.075

-0.07

-0.065

-0.06

-0.055

-0.05

-0.045

-0.04

-0.035

-0.03

-0.025

-0.02

-0.015

-0.01

-0.005

2E-17

0.005

0.01

0.015

0.02

0.025

0.03

0.035

0.04

0.045

0.05

0.055

0.06

0.065

0.07

0.075

0.08

0.085

0.09

0.095

0.1

0.105

0.11

0.115

0.12

0.125

0.13

0.135

0.14

0.145

0.15

0.155

0.16

0.165

0.17

0.175

0.18

0.185

0.19

0.195

0.2

0.205

0.21

0.215

0.22

0.225

0.23

0.235

0.24

0.245

0.25

0.255

0.26

0.265

0.27

0.275

0.28

0.285

0.29

0.295

0.3

0.305

0.31

0.315

0.32

0.325

0.33

0.335

0.34

0.345

0.35

0.355

0.36

0.365

0.37

0.375

0.38

0.385

0.39

0.395

0.4

0.405

0.41

0.415

0.42

0.425

0.43

0.435

0.44

0.445

0.45

0.455

0.46

0

1000

2000

3000

4000

5000

6000

7000

8000

FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13

INR

Cr

Market demand growth trend of metal cutting machines industry in India

31

1072

1734

2496

3468

3966

3932

2783

6788

4767

6738

The recessionary pressure of 2009-10 & 2012-13 have severely impacted the industrial activity within India.

Decline in turnover is due to the slowdown of industrial activity in the country particularly in the

automotive, infrastructure, heavy engineering and construction industries as a result the growth of the Indian

machine tools industry was hampered. However the recent revival in the index of industrial production can be

construed as a harbinger of growth for the Indian machine tools industry.

Source : IMTMA & BDB Analysis

Market demand growth trend in domestic vis-à-vis import of metal

cutting machines industry in India

32

1072 1734 2496 3468 3966 3932 2783 4767 6788 6737Market size in

Rs Cr


46%53%

59% 62%68%

75%

60% 63%

53%

63%

54%47%

41% 38%32%

25%

40% 37%

47%

37%

FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13

Import Domestic

Market demand across product categories over the last decade

33

Most product categories have seen a healthy growth rate driven by the Indian engineering sector especially the

auto and auto ancillary sector which has witnessed increased investments

FY 2013 saw a contraction in demand across most product categories due to a broad based slowdown in the

Indian economy

Year

Growth across product categories (In Rs Cr)

Turning

CentersVMCs HMCs

Grinding

Machines

Milling

Machines Lathes SPMs

Tool

Grinding

machines

EDMs

2003-04 331 235 92 175 72 31 60 26 49

2004-05 477 428 251 232 122 45 97 27 57

2005-06 659 533 333 364 237 91 141 37 101

2006-07 850 740 617 520 217 116 195 66 146

2007-08 988 825 738 562 306 101 218 113 116

2008-09 960 641 857 569 354 136 215 109 92

2009-10 749 593 329 364 337 143 155 37 75

2010-11 1469 1034 806 459 434 145 264 59 96

2011-12 2115 1568 1055 842 313 233 376 116 170

2012-13 1814 1376 1127 929 514 374 372 100 132

CAGR 18.54% 19.33% 28.47% 18.17% 21.72% 28.28% 20.02% 14.42% 10.42%


34

31%

27%

26%

25%

25%

24%

27%

31%

31%

27%

22%

25%

21%

21%

21%

16%

21%

22%

23%

20%

9%

14%

13%

18%

19%

22%

12%

17%

16%

17%

16%

13%

15%

15%

14%

14%

13%

10%

12%

14%

7%

7%

9%

6%

8%

9%

12%

9%

5%

8%

3%

3%

4%

3%

3%

3%

5%

3%

3%

6%

6%

6%

6%

6%

5%

5%

6%

6%

6%

6%

2%

2%

1%

2%

3%

3%

1%

1%

2%

1%

5%

3%

4%

4%

3%

2%

3%

2%

3%

2%

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Turning Centers VMCs HMCs

Grinding Machines Milling Machines Lathes

SPMs Tool Grinding machines EDMs

Market demand across product categories over the last decade

117.1138.3

209.5243.4 251.9

293.1 275.7 269.9 269.9

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

IIP

Key factors impacting the growth of the metal cutting machinery

35

8.59.7

11.1 10.9 11.2

14.1

17.620.0

21.9

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

Automobile production (in Million Units)

Growth in Index of Industrial Production (Machinery, power equipment, Transport equipment)

Growth in the automobile production

522720

9001080 1104

13201560

2100 1980

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

Auto component industry size (INR Billion)

Growth in the auto component industry

510 589681

823 8901042

12141320 1400

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

Heavy engineering industry size (INR Billion)

Growth in the heavy engineering industry(Power, process equipment, cement,, sugar, mining equipment)

Source : SIAM

Source : SIAM, ACMA Source : Department of Heavy Industry

Source : Central Statistics Office, World Bank

6270

8092

104117

132143 140

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

2013

Dies & Moulds industry size (INR Billion)

Key factors impacting the growth of the metal cutting machinery

36

Growth in General engineering sector (Motors, compressors, gensets, pumps, engines, textile & packaging machines)

Growth in the dies & mould sector

506620

798897 950 1010

11641275

1370

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

General Engineering industry size (INR Billion)

Other important sectors which have an impact on the growth in the demand for metal cutting machinery are :

-- Aerospace

There are several factors driving growth in manufacturing in India’s aerospace industry. These include strong

economic growth that has resulted in rapidly growing domestic aircraft demand, the liberalization of civil aviation

policies, offset requirements, a strong domestic manufacturing base, cost advantages, a well-educated talent

pool, the ability to leverage IT competitiveness and a liberal Special Economic Zones law that provides attractive

fiscal benefits for developers and manufacturers

-- Defence

The Indian Defence sector is growing at a good rate and is ranked as the 10th largest investor in defence

globally. India established itself as the World’s largest arms importer 70% of its defence procurement coming from

foreign companies. Russia, Israel and United states remain the top suppliers of defence equipment to India. The

threat from China and Pakistan and their growing defence capabilities has led to a modernisation drive with the

official defence budget amounting to Rs 2,03,672 Crore in 2013-14 which represents a growth rate of 5.21% over

the previous year’s allocation of Rs 1,93,407 Crore

Source : TAGMASource : Department of Heavy Industry

Projected growth of the key sectors impacting the growth of the metal

cutting machinery

37

Growth in Index of Industrial Production (Machinery, power equipment, Transport equipment)

Growth in the automobile production

Growth in the auto component industry Growth in the heavy engineering industry(Power, process equipment, cement,, sugar, mining equipment)

269.0 271.0 278.4295.1

318.7344.2

0%1%

3%6%

8%

8%

-2%

0%

2%

4%

6%

8%

10%

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

IIP % Growth

21.92 21.92 23.0224.63

26.3528.46

10%

0%

5%

7% 7%8%

0%

2%

4%

6%

8%

10%

12%

0

5

10

15

20

25

30

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Automobile production (in Million Units) % Growth

1980 2089 22252425

26672987

-6%

6%7%

9%10%

12%

-8%-6%-4%-2%0%2%4%6%8%10%12%14%

0

500

1000

1500

2000

2500

3000

3500

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Auto component industry size (INR Billion) % Growth

1400 1428 1514

1650 1798

1996

6%2%

6%

9%9%

11%

0%

2%

4%

6%

8%

10%

12%

0

500

1000

1500

2000

2500

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Heavy engineering industry size (INR Billion) % Growth


Projected growth of the key sectors impacting the growth of the metal

cutting machinery

38

Growth in General engineering sector (Motors, compressors, gensets, pumps, engines, textile & packaging machines)

Growth in the die & mould sector

1370 1439 1539

1678 1829

2030

7%

5%

7%

9% 9%

11%

0%

2%

4%

6%

8%

10%

12%

0

500

1000

1500

2000

2500

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

General Engineering industry size (INR Billion) % Growth


140 147 162

181203

228

-2%

5%

10%

12% 12%

12%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

0

50

100

150

200

250

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Die & Mould industry size (INR Billion) % Growth

Other important sectors which have an impact on the growth in the demand for metal cutting machinery are :

-- Aerospace

There are several factors driving growth in manufacturing in India’s aerospace industry. These include strong

economic growth that has resulted in rapidly growing domestic aircraft demand, the liberalization of civil aviation

policies, offset requirements, a strong domestic manufacturing base, cost advantages, a well-educated talent

pool, the ability to leverage IT competitiveness and a liberal Special Economic Zones law that provides attractive

fiscal benefits for developers and manufacturers

-- Defence

The Indian Defence sector is growing at a good rate and is ranked as the 10th largest investor in defence

globally. India established itself as the World’s largest arms importer 70% of its defence procurement coming from

foreign companies. Russia, Israel and United states remain the top suppliers of defence equipment to India. The

threat from China and Pakistan and their growing defence capabilities has led to a modernisation drive with the

official defence budget amounting to Rs 2,03,672 Crore in 2013-14 which represents a growth rate of 5.21% over

the previous year’s allocation of Rs 1,93,407 Crore

The projected growth of key sectors have been considered for the machine-wise projections in the further slides

Projected consumption for metal cutting industry

39

6737 6854

73728195

9486

10962

-1% 2%

8%

11%

16% 16%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

2000

4000

6000

8000

10000

12000

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Consumption of metal cutting machinery (INR Cr) % Growth Source : BDB Analysis

The growth in the consumption of metal cutting machinery over the past two years has displayed a

downturn on the back of the poor investments in the manufacturing sectors

The Index of industrial production has seen a negative growth predominantly due to the slowdown in

the manufacturing sectors hence the weakness in the demand for metal cutting machines

Low growth and weak business confidence feed into each other in a negative feedback loop

However the consumption of metal cutting machines is expected to recover and see a growth of

around 11% for the year 2015 - 2016

Projected growth in consumption across product categories (Rs Cr)

40

The economy is expected to revive by the year FY 2015 and most user sectors will see an upturn in their volumes

FY 2014 is expected to see a marginal growth of around 2% growth mainly due to the slowdown in the

automotive sector

Due to the increasing application of VMC in aerospace & defence sector, VMCs are estimated to grow at a higher

rate compared to HMCs

Year

Projected growth across product categories (In Rs Cr)

Turning

CentersVMCs HMCs

Grinding

Machines

Milling

Machines Lathe SPMs

Tool Cutter

Grinding

machines

EDMs

Total metal

cutting

machinery

FY 2013 1814 1376 1127 929 514 374 372 100 132 6738

FY 2014 1874 1358 1197 948 509 385 361 97 125 6854

FY 2015 2019 1490 1319 995 544 408 368 102 127 7372

FY 2016 2261 1689 1471 1094 599 449 390 111 130 8195

FY 2017 2671 2047 1653 1237 677 512 425 125 138 9486

FY 2018 3129 2432 1883 1398 772 584 472 144 149 10962

CAGR 10% 11% 10% 9% 9% 9% 5% 8% 3% 10%

Factors considered for procurement of the products under study

41

Total number of Companies Covered - 120 Numbers

1 2 3 4 5 6 7 8 9

Graph indicates the average ranking by the companies covered as per their priority for the factors considered while procuring

Highest

Priority

Lowest

Priority


7.9

7.45

7.23

7.1

4.71

4.52

3.05

2.52

1.91

0 1 2 3 4 5 6 7 8 9

Material Saving

Delivery Time

Electricity Consumption

Past Experience

Commercial

Brand Name

Afetr sale Service

Reliability

Technology

Average Ranking

3. CONCLUSIONS

Recommended key action areas to improve domestic manufacturers’

market participation

43

ProductsMarket Size

(In Rs Crore)

Share of Domestic

Supply

Share of

Imports

Major source of

importMarket Growth

Turning Centers 1800 - 1825 56% 44% Korea (22%)

Vertical Machining Centers 1360 - 1400 66% 34% Taiwan (35%)

Horizontal Machining Centers 1125 - 1145 23% 77% Japan (63%)

Grinding Machines 920 - 940 32% 68% Japan (40%)

Milling Machines 495 - 530 9% 91% Italy (16%)

SPMs 360 - 400 78% 22% Japan (67%)

EDMs 125 - 135 63% 27% China (25%)

Tool Grinding machines 100 - 110 60% 40% Germany (17%)

Turning CentersDemand for Turning Centers is on the higher side; The Indian machine tool manufacturers cover the popular range of turning

centers , but only in standard and basic designs

VMCs

This is a growing segment with high technology. Higher share of domestic manufacturers indicate that acceptability for Indian

brands is reasonably good for this product segment; however, the high imports from Taiwan makes this segment highly price

competitive

HMCs

Currently, this market is dominated by imports because of the demand for technologically advanced machineries; Majority of

import is from Japan; Indian manufacturers lack in manufacturing technologically high end machinerieswith multi axes movement

and high spindle speeds

Grinding MachinesDue to the incapability of Indian manufacturers to supply superior technology machines, most of the demand in this segment is

met through imports

Milling Machines Due to unavailability of required specifications, end users prefer to import used machineries from Europe or new machineries

from China at a very low price

SPMs SPMs built by Indian manufacturers are considered to be advanced technology machines which is accepted globally

EDMs Large quantity of imports of EDMs from China at low price levels is becoming a threat to the domestic manufacturers

Key action areas for major metal cutting machines

44

Products Market Opportunities & Constraints Strategy for domestic manufacturers

Turning Centers The Indian machine tool manufacturers cover the

popular range of turning centers , but only in standard

and basic designs

Focus on supplying multi function turning center machines like turn

mill centers

Supply turning centers with global standards having spindles with

integrated motors, speed of 6000 rpm and slide traverse rates above

60 meters per minute

Continue supplying turning center machines of sizes ranging from 100

to 250mm turning diameters with a more advanced designing

Vertical

Machining

Centers

The current trend in machining centers is to have

additional axes of movements to take on complex

machining requirements including turning and grinding

capabilities on the machining center.

Focus on supplying compact machines suitable for line integration for

mass production of auto components

Supply machining centers having axes of movements above 5,

traverse rates above 100 meters per minute and speed ranging from

10,000 to 50,000 rpm

Machining centers consisting of grinding and turning capabilities may

add value to the end user

Horizontal

Machining

Centers

Increasing demand for machining centers with more

axes of movements

Grinding

Machines

Machines lacking advanced technology features

Comparatively low performance of machines wrt to

parameters like accuracy and surface finish

Supply machines with creep-feed grinding capability which may add

value to the die & mould segment

Focus on developing machines with high accuracy and surface finish

qualities which will be at par with the import quality machines

Milling Machines High imports of used machineries from Europe and

new machineries from China at very low cost

Supply milling machines with technology features matching with that

of imported machines at a competitive price level

Supply machines capable of milling and boring

SPMs No market constraintMay focus on exports of SPMs as Indian built SPMs are considered to

be technologically advanced

EDMs High imports from China at a very low price Focus on supplying EDMs at a highly competitive price level

Technology gaps between domestic manufacturers and imports

45

Parts, peripherals and assemblies procured or manufactured in India::

Domestic manufacturers have the capability to build the machine body of similar quality as that of imported

machines; however, end users perceive that the difference is in the quality of parts, peripherals and

assemblies used within the machines as compared to machines from Europe and Japan.

Accuracy in positioning:

It is opined that domestically manufactured machines lack in precision and accuracy in positioning

compared to the import quality machines

Lack of installed base for new specification requirements:

End user segments opined that they are not willing to procure domestically manufactured machines in

case of upgraded specifications requirements though the Indian manufacturers have the capability to

supply the same; this is mainly due to lack of installed base or unproven technology due to which end

users feel that these machines would not be able to deliver the expected quality; hence they depend on

imports

Other areas where Indian manufacturers lack behind global manufacturers include:

Multi-functioning machines

Non reliability to achieve uptime above 98%

Lack in parameters like safety and eco-friendliness

Low performace rating compared to imported machines wrt parameters like tool change

time, chip to chip time, pallet change time, footprint, acceleration etc.

Major challenges faced by Indian Metal Cutting Industry

46

Lack of locally

developed technology

Indian manufacturers may invest in developing or improving the existing R&D facilities;

this will help to bridge the gap of lack of indigenously developed technology

Unavailability of locally

produced critical

components

Major critical components are currently being imported and contribute to approximately

30% - 40% of total costs. To improve cost competitiveness, Indian manufacturers may

focus on production of these critical components

Highly price competitive

market

With large quantities of machines being imported from countries like China and Turkey,

Indian manufacturers may focus on substituting this market with increased reach and

offering better service solutions

Highly dependent on

imports

Indian metal cutting industry is highly dependent on imports of machines and critical

components as well; Indian manufacturers may focus on developing high end

technologies locally and focus on price competitiveness

Low awareness / credibility

of Indian manufacturers

and their capabilities to

offer high technology

products

Perception exists among end user segments that domestic machine manufacturers are

not at par with imported machines with respect to the quality and life of the machine; this

may be changed by providing demonstrations of machines to end user segments and

increasing the brand awareness. End users are unaware about current capabilities of

Indian manufacturers; hence they may work on improving the awareness amongst end

users by displaying their technological capabilities in exhibitions

Challenges Strategic Recommendations

Most of the end users do not prefer Indian brands because of unproven

technology, Indian manufacturers have to prove their brands with respect to technologyUnproven Technology

Few areas to be focused by Indian metal cutting machine manufacturers

47

Linear Motor Drivers

Two Piece Construciton V/S Single Piece Construction (Monoblock)

Cast Iron V/S Alternate Materials

Single Purpose V/S Multi Tasking (Combi)

5 Axes Machining

Belt Driven Spindles V/S Direct Drive (In Line)

Wireless Connections From Control To Elements

High Speed Machining

High rpm spindles

Single hit machining

Machine tools for TPM, lean and cellular manufacturing

Rapid tool change

International alliances in design, development, manufacture and marketing

4. PRODUCT WISE ANALYSIS

MARKET SIZE ANALYSIS OF

ELECTRICAL DISCHARGE MACHINE

Overview of electrical discharge machines

50

Electro Discharge Machining (EDM) is an electro-thermal non-traditional machining process, where

electrical energy is used to generate electrical spark and material removal mainly occurs due to

thermal energy of the spark.

EDM is mainly used to machine difficult-to-machine materials and high strength temperature resistant

alloys. EDM can be used to machine difficult geometries in small batches or even on job-shop basis.

Work material to be machined by EDM has to be electrically conductive.

Among thermal removal methods, electrical

discharge machining or EDM is the oldest and

most widely used. Electron-beam (EBM) and

laser beam machining (LBM) are newer thermal

techniques also widely accepted in industry today.

Plasma-arc cutting using a plasma arc torch is

mostly used for cutting relatively thick materials

Type of EDM

Die-sinking (also known as ram) type EDM

machines require the electrode to be machined in

the exact opposite shape as the one in the work

piece.

Wire-cut EDM machines use a continuous wire as

the electrode. Sparking takes place from the

electrode wire-side surface to the work piece

Major Indian electrical discharge machine manufacturers & their

locations

51

Company Location Ownership

Electronica Machine Tools Pune Private

Concord United Products Bangalore Private

Market demand for FY 2013 - electrical discharge machine

52

73%

61%

27%

39%

In Units In Rs Cr

Domestic Import

Total market demand for electrical discharge machines in India (in Units) (Domestic + Import) : 680 - 730

Total market demand for electrical discharge machines in India (in Rs Cr) (Domestic + Import): 125 - 135

680 - 730 125 - 135

Total Market breakup based on source

In Units in Rs Cr

Domestic 490 – 510 80 - 85

Import 190 - 220 45 - 50

Total 680 - 730 125 - 135


Market demand for FY 2013 - electrical discharge machine (Domestic)

53

490 - 510 80 - 85

Sales breakup based Type of Machine

39% 40%

61% 60%

In Units In Rs Cr

Sinker Wire Cut

Among thermal removal methods, electrical discharge machining or EDM is the oldest and most widely used.

Electron-beam (EBM) and laser beam machining (LBM) are newer thermal techniques also widely accepted inindustry today.

EDM is not a fast method; some jobs can take days to produce holes, so its use is limited to jobs that cannoteasily be done in other ways (e.g. oblong slots or complex shapes, sometimes in very hard material).


Total market demand for electrical discharge machines in India (in Units) (Domestic Sale) : 490 - 510

Total market demand for electrical discharge machines in India (in Rs Cr) (Domestic Sale ): 80 - 85

58% 58%

42% 42%

In Units In Rs Cr

CNC Non CNC

490 - 510 80 - 85

Market size for FY 2013 - electrical discharge machines (Import)

54

Total market demand for electrical discharge machines in India (in Units) (Import) : 190 - 220

Total market demand for electrical discharge machines in India (in Rs Cr) (Import): 45 - 50

80%87%

20%13%

In Units In Rs Cr

New Used

190 - 220 45 - 50

Import breakup based on type of machine

China, Taiwan and Thailand based companies are the major supplier of new EDM machines which contribute

more than 80% of market share

Usage of Used EDM Machines is very less

Used machines majorly imported from China market

In Units in Rs Cr

New 150 – 170 40 – 44

Used 40 – 50 5 – 6

Total 190 - 220 45 – 50


Market analysis for import of electrical discharge machines for FY 2013

- Country wise & Brand wise

55

Brand Name New Machinery Used Machinery Total

Market Share based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)New Used

SODICK 21 9.7 9 1.1 30 10.7 23% 18%

MAKINO 9 5.5 0 0.0 9 5.5 13% 0%

AGIE CHARMILLES 9 4.2 5 0.5 14 4.7 10% 8%

FANUC 7 4.2 0 0.0 7 4.2 10% 0%

MITSUBISHI 11 4.2 1 0.8 12 5.0 10% 14%

CHMER 18 2.9 0 0.0 18 2.9 7% 0%

YCM 6 1.3 0 0.0 6 1.3 3% 0%

JOEMARS 10 0.8 0 0.0 10 0.8 2% 0%

OSCAR 9 0.8 0 0.0 9 0.8 2% 0%

Suzhou Baoma 11 0.4 0 0.0 11 0.4 1% 0%

EXCELLENT 10 0.4 0 0.0 10 0.4 1% 0%

Zhongyuan 4 0.0 0 0.0 4 0.0 0% 0%

AGIE CHARMILLE 0 0.0 6 0.7 6 0.7 0% 11%

KINGRED 0 0.0 10 2.2 10 2.2 0% 36%

Others 34 7.6 10 0.8 44 8.3 20% 13%

Grand Total 159 42 41 6 200 48

Country Name New Machinery Used Machinery Total

Market Share based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)New Used

CHINA 66 8.8 12 3.2 78 12.1 21% 54%

THAILAND 18 8.0 3 0.4 21 8.3 19% 6%

TAIWAN 49 6.3 4 0.5 53 6.8 15% 8%

SINGAPORE 9 5.5 11 0.7 20 6.1 13% 11%

JAPAN 8 4.6 3 0.2 11 4.9 11% 4%

Others 9 8.8 8 1.0 17 9.8 20% 17%

Grand Total 159 42 41 6 200 48

Total market demand for electrical discharge machines in India (in Units) (Import) : 190 - 220

Total market demand for electrical discharge machines in India (in Rs Cr) (Import): 45 - 50

Segment wise market breakup of electrical discharge machine for FY

2012-13

56

Segment Market (in Rs Cr)

Auto& Auto Component 38 - 40

Aerospace & Defence 34 - 36

Electronic Industry 14 - 15

Die & Mould 18 - 20

Railway 5 - 6

Others 16 - 18

Total 125 - 135

30%

27% 11%

15%

4%

13%

Market Breakup In Rs Cr

Auto& Auto Component Aerospace & Defence

Electronic Industry Die & Mould

Railway Others


Segment wise usage pattern of electrical discharge machine

57

Name SegmentMajor Brands

Indian Brands Foreign Brands

Auto OEM ElectronicaAGIE CHARMILLES, Suzhou

Baoma, Makino, Chmer

Auto Components Electronica, Concord Suzhou Baoma, Makino, Chmer

Aerospace - Makino, Mitsubishi, Chmer

Die & Mould Electronica Makino, Chmer

Electronic Industry Electronica Suzhou Baoma, King red

General Engineering Electronica Makino, Chmer, YCM

Market forecast of electric discharge machines for next 5 years

58

Year

Projected

market size

(In Rs Cr)

Growth in %

FY 2013 132

FY 2014 125 -5%

FY 2015 127 1%

FY 2016 130 3%

FY 2017 138 6%

FY 2018 149 8%


132

125 127

130

138

149

-5%

1%

3%

6%

8%

-0.06

-0.04

-0.02

0

0.02

0.04

0.06

0.08

0.1

110

115

120

125

130

135

140

145

150

155

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Projected market size (In Rs Cr)

Projected market size(In Rs Cr) Growth in %

ANALYSIS OF CNC TURNING

CENTERS MARKET IN INDIA

Overview of CNC turning centers in India

60

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. However, the dominant market is for machines in the size range

from 100 mm to 250 mm turning diameters.

Indian machines are adequate to meet basic turning applications but have to be technologically

developed further to come abreast with international standards of multi function CNC turning machines.

Indian Manufacturer have good amount of

market share in turning centers, Indian

manufacturer majorly focus on popular

specification range which is majorly used in

Auto and Auto components segment

A Turning Center is simply a CNC lathe with a

multi-station turret and an enclosure

Turning is one of the most common of metal

cutting operations. In turning, a work piece is

rotated about its axis as single-point cutting

tools are fed into it, shearing away unwanted

material and creating the desired part.

Turning can occur on both external and internal

surfaces to produce an axially-symmetrical

contoured part.

Major Indian CNC turning center manufacturers & their locations

61


Ace Designers Bangalore Private

HMT Bangalore Public limited

Jyothi CNC Automation Rajkot Private

Laxmi Machine Tools Coimbatore Private

Askar Microns Mysore Private

Miven Machine Tools Hubli Private

Galaxy machine tools Belgaum Private

Gedee Weiler Coimbatore Private

PMT machine tools Pune Private

Marshall Ludhiana Private

BFW Bangalore Private

Major foreign CNC turning center suppliers & their locations

62

Company Location Location in India

Mazak Japan Technical center, Pune

DMG Germany Bangalore

Takisawa Japan Bangalore

HAAS USA Technical center

Primero Taiwan --

Filler Taiwan --

Niles-Simmons Germany --

STOS Czechoslovakia --

FairFriend Taiwan --

EMCO Austria --

Tong Tai Taiwan --

WMW Germany --

Daewoo Korea --

Alextech Taiwan --

Hyundai-Kia Korea Chennai

Spinner Automation Germany Gurgaon ( Sales Office )

Goratu Spain Kolkata

Emag Germany Bangalore

Leadwell USA New Delhi (Dealer)

Takamaz Japan Bangalore

Pinacho Spain Bangalore

Lico Taiwan Bangalore

Hurco USA Chennai

Milltronics USA ( Sales Office )

63

Market demand for FY 2013 - CNC Turning center

Total market demand for turning centers in India (in Units) (Domestic + Import) : 7600 - 7800

Total market demand for turning centers in India (in Rs Cr) (Domestic + Import): 1800 - 1825


77%

56%

23%

44%

In Units In Rs Cr

Domestic Import

1800 - 18257600 - 7800

In Units in Rs Cr

Domestic 5900 - 6000 1010 – 1020

Import 1700 - 1800 790 - 805

Total 7600 - 7800 1800 - 1825


Product TypeQuantity

(in units)

Value

(In Rs Cr)

Vertical Turning Centers 390 - 420 305 - 320

Horizontal Turning Centers 320 - 400 20 – 25

Other types 6890 - 6980 1475 - 1480

Total 7600 - 7800 1800 - 1825

Continue…

64

Market break up based on technology

All industries require turning centers up to 200 mm turning diameter

Industries like Aerospace, Heavy engineering, Die & mould segments use machineries of turning diameter

above 200 mm

Market In Rs Cr

85%

10%

5%

Upto 200 mm 200 - 600 mm 600 & Above


Total market demand for turning centers in India (in Units) (Domestic Sales) : 5900 - 6000

Total market demand for turning centers in India (in Rs Cr) (Domestic Sales): 1010 - 1020

36%

24%

12%

10%

18%

upto 200 mm

Auto Components

Auto OEM

General Engineering

Aerospace & Defence

Others

20%

18%

15%

15%

12%

20%

above 200 mm

General Engineering

Aerospace & Defence

Heavy Engineering

Die & Mould

Auto & Auto Components

Others

Construction & Mining included in Heavy Engineering

Segment wise market breakup of CNC turning center for FY 2012-13

(Domestic)

65



Auto OEM 180 - 181


Aerospace & Defence 60 - 62

Die & Mould 40 - 41

Construction & Mining 30 - 31

Railway 20 - 21

Others 50 - 51

Total 1010 - 1020

42%

18%

20%

6%

4%

3%2%

5%


Auto Component Auto OEM

General Engineering Aerospace & Defence

Die & Mould Construction & Mining

Railway Others


Market demand for FY 2013 - CNC Turning center (Import)

66

Turning centers import market break up based on type

1700 - 1800 790 - 805

47%

92%

53%

8%

In Units In Rs Cr

New Used

Total market demand for turning centers in India (in Units) (Import Sales) : 1700 - 1800

Total market demand for turning centers in India (in Rs Cr) (Import Sales): 790 - 805

New turning centers are mostly imported from countries

like China, Japan, Korea and Taiwan

(Doosan, Hyundai, Mazak & Takisawa)

Used turning centers are mostly imported from countries

like Italy, Germany and France (Daewoo, Mori Seiki &

Tornos)

In Units In Rs Cr

New 1100 - 1160 730 - 740

Used 600 - 640 60 - 65

Total 1700 - 1800 790 - 805


Market analysis for import of CNC turning center for FY 2013 -

Country wise

67



Country Name

Used Machinery

Market Share

based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)New

Germany 63 10 17%

Italy 76 6 10%

Japan 95 11 18%

Korea 56 7 11%

Taiwan 40 1 2%

USA 79 6 9%

Others 222 21 33%

Total 631 62

Country Name

New Machinery

Market Share

based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)New

China 279 66 9%

Germany 36 69 9%

Italy 24 59 8%

Japan 150 141 19%

Korea 286 168 23%

Taiwan 131 81 11%

USA 83 31 4%

Others 153 119 16%

Total 1142 735

Market analysis for import of CNC turning center for FY 2013 -

Brand wise

68



Brand Name

New Machinery

Market Share

based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)New

DMG 36 39.4 5%

Doosan 100 50.6 7%

Hyundai 103 46.1 6%

HWACHEON 65 28.5 4%

Mazak 109 57.9 8%

TAKISAWA 53 33.0 4%

VICTOR 20 6.1 1%

OKUMA 24 15.2 2%

Zhejiang headman 95 5.1 1%

HAAS 72 25.7 3%

TAKANG 20 10.4 1%

You ji 22 20.7 3%

MORI SEIKI 12 12.6 2%

Others 411 383.9 52%

Total 1142 735

Brand Name

Used Machinery

Market Share

based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)Used

Daewoo 84 4.7 8%

HARDINGS 24 1.3 2%

Mazak 18 0.9 1%

WMW 11 3.4 6%

TAKISAWA 21 1.4 2%

LEADWELL 13 0.4 1%

TORNOS 30 0.2 0.3%

VICTOR 15 0.5 1%

OKUMA 14 1.6 3%

MORI SEIKI 32 1.3 2%

COLCHESTER 13 0.4 1%

STAR 9 1.3 2%

NAKAMURA 19 0.6 1%

Others 328 44.0 71%

Total 631 62

Classification of machine market on basis turning diameter

69

60%

20%

10%

10%


Upto 200 mm 200 - 600 mm

600 - 1000 mm 1000 & Above

Above 600 mm turning diameter product majorly goes

in steel, sugar, power and oil & gas segment




Segment wise market breakup of CNC turning center for FY 2012-13

(Import)

70


Aerospace & Defence 198 – 201

Auto & Auto Component 174 – 177

Heavy Engineering 142 – 145

General Engineering 134 – 137

Others 142 – 145

Total 790 - 805

25%

22%

18%

17%

18%


Aerospace Auto & Auto Component

Heavy Engineering General Engineering

Others




ANALYSIS OF VERTICAL

TURNING CENTERS

MARKET IN INDIA

Major Indian vertical turning centers manufacturers & their locations

72


ACE Designer Bangalore Private

TAL Pune Private

Lokesh Machines Hyderabad Private


Market demand for FY 2013 - vertical turning centers

73

35%28%

65%72%

In Units In Rs Mn

Domestic Import

Total market demand for vertical turning centers in India (in Units) (Domestic + Import) : 390 - 420

Total market demand for vertical turning centers in India (in Rs Cr) (Domestic + Import): 305 -320


390 - 420

In Units in Rs Mn

Domestic 140 - 150 95 – 100

Import 250 -270 210 - 220

Total 390 - 420 305 - 320

305 - 320


Segment wise market breakup of vertical turning centers for FY 2012-13

(Domestic manufactured)

74





Aerospace & Defence 9.5 – 10

Dies & Mould 7.5 – 8

Others 17 – 18

Total 95 - 100

31%

21%

12%

10%

8%

18%

Market Size in Rs Cr

Auto & Auto Component Heavy Engineering

General Engineering Aerospace & Defence

Dies & Mould Others


Market demand for FY 2013 - vertical turning centers (Import)

75

Total market demand for vertical turning centers in India (in Units) (Import) : 250 - 270

Total market demand for vertical turning centers in India (in Rs Cr) (Import): 210 - 220

250 - 270 210 - 220

Import Breakup in terms of number and Value

50%

18%

50%

82%

In Units In Rs Cr

Used New

More than 50% of new machineries demand is catered by Korea and Taiwan based companies (You ji, Hyundai,

Doosan, Hwacheon etc)

Whereas used machineries demand is catered by Germany and Italy based companies

Emag is also one more popular brand in Vertical Turning center

In Units In Rs Cr

New 125 – 135 170 – 175

Used 125 – 135 40 – 45

Total 250 – 270 210 – 220

Market analysis for import of vertical turning center for FY 2013


76


Market Share based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)New Used

Korea 58 52.49 2 2.8 60 55.29 29% 7%

Taiwan 47 45.25 1 0 48 45.25 25% 0%

Germany 6 12.67 28 4 34 16.67 7% 10%

Italy 1 7.24 15 9.6 16 16.84 4% 24%

Japan 4 3.62 5 0.8 9 4.42 2% 2%

Others 14 59.73 78 22.4 92 82.13 33% 56%

Total 130 181 129 40 259 221


Market Share based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)New Used

You Ji 19 18 0 0 19 18 10% 0%

TITAN 1 16 9 7.2 10 23 9% 18%

Hwachion 27 13 0 0 27 13 7% 0%

EMAG 4 11 0 0 4 11 6% 0%

Hyundai 14 11 0 0 14 11 6% 0%

Mori Sieki 11 7 2 0 13 7 4% 0%

Doosan 13 7 0 0 13 7 4% 0%

Others 41 98 118 32.8 159 131 54% 82%

Total 130 181 129 40 259 221

Total market demand for vertical turning centers in India (in Units) (Import) : 250 - 270

Total market demand for vertical turning centers in India (in Rs Cr) (Import): 210 - 220

Comparison of Indian technology with global technology

77

• The Indian machine tool industry produces a range of turning centers in all sizes, from the small to

the very large. However, the dominant market is for machines in the size range from 100 mm to 250 mm

turning diameters

• The Indian machine tools covers the popular range, but only in standard and basic designs

• There is limited requirement above 1000 mm mainly in Aerospace, Defense, Railway, Heavy Engineering &

Auto OEM segments. Currently Indian manufacturers are not catering. So, they need to focus above 1000 mm

to complete their product range

• Spindles with integrated motors and speeds of 7000 rpm is common internationally, but these have yet to be

offered from Indian machines on a regular basis as standard products

Indian Manufacturers Foreign Manufacturers

Focus Area Focused on popular specifications onlyFocused on popular specifications and also cater

to the special requirements

Product Range Limited Vast range of products with customization

Number of axis 2 and 3 Up to 5

Tool change time 2.5 - 3 Seconds 0.5 - 1 Second

Spindle speed <7000 rpm >7000 rpm

Turning Diameter <1000 mm >1000 mm

Segment wise usage pattern of CNC turning center

78

Name

Segment

Major BrandsNumber

of axis

Spindle

speed

(rpm)

Spindle

Power

(Kw)

Turning

Diameter

(mm)Indian Brands Foreign Brands

Auto

Jyoti CNC, Marshall,

HMT, ACE Designer,

LMW

Deckel Maho, Dalih,

Takisawa, Okuma &

Howa

2, 3 4000,8000 7.5-11

100, 180,

200, 600,

1200

Auto

Components

Jyoti, Lokesh,

PMT, LMW, ACE

Designer

Mazak, RIFA, Okuma &

Howa, Tong Tai2, 3 4000,8000 7.5-11

180, 200,

250, 300

AerospaceJyoti CNC, Ace,

Kirloskar, Makino

DMG, Hurth, Toshiba,

HEC, Dorries, Schiess2, 3

3000,

8000,

10000

7.5 - 15,

21

150, 210,

300, 500,

1000

Die & MouldACE Designer, ASKAR,

LMW

Mazak, Hitachi, Deckel

Maho, 2

2500,

3000,

5000

7.5-11 450

ForgingLMW, Anil Machine,

Kirloskar, Gujarat LatheMazak, Haas 2 3000 7.5 - 15

180, 350,

400

Segment wise usage pattern of CNC turning center

Name

Segment

Major BrandsNumber

of axis

Spindle

speed

(rpm)

Spindle

Power

(Kw)

Turning

Diameter


General

Engineering Askar, Samarat Doosan, Pinnacho 2, 3

3000,

4000,

5000

10-20250, 300,

600, 900

Construction

& Mining

Equipment

Jyoti CNC, HMT, Mazak, SNK, Index 2 3000 7.5200, 400,

800

Defense

BFW, HMT, Jyoti CNC,

ACE Designer, LMW,

Lokesh

Haas, DMG, Mazak 2, 33000,

500060

600, 700,

1000

Heavy

EngineeringHMT, Jyoti CNC

Mazak, Deckel Maho,

Blansko, Skoda, Tos,

Toshiba

2, 3

3000,

5000,

8000

21

300, 500,

600, 700,

1000

RailwayHMT, Jyoti CNC, ACE,

BFW, Premier

Cross, Deckel Maho,

Murata, 2, 3, 5

2500,

300018

100, 300,

500, 700,

800, 1000,

1600

79

Market forecast of CNC turning centers for next 5 years

80

Year

Projected

market size

(In Rs Cr)

Growth in %

FY 2013 1814

FY 2014 1874 3%

FY 2015 2019 7%

FY 2016 2261 11%

FY 2017 2671 15%

FY 2018 3129 15%

18141874

2019

2261

2671

3129

3%

7%

11%

15%15%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0

500

1000

1500

2000

2500

3000

3500

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




ANALYSIS OF CONVENTIONAL LATHE

MACHINES MARKET IN INDIA

Market demand for FY 2013 - Conventional Lathe Machines

82

Total market demand for lathe machines in India (in Units) (Domestic + Import) : 2100 - 2150

Total market demand for lathe machines in India (in Rs Cr) (Domestic + Import): 365 - 385


In Units in Rs Cr

Domestic 510 - 530 95 – 105

Import 1590 – 1620 270 - 280

Total 2100 – 2150 365 - 385

25% 27%

75% 73%

In Units In Rs Cr

Domestic Import

2100 - 2150 365 - 865


Market forecast of conventional lathe machines for next 5 years

83

Year

Projected

market size

(In Rs Cr)

Growth in %

FY 2013 374

FY 2014 385 3%

FY 2015 408 6%

FY 2016 449 10%

FY 2017 512 14%

FY 2018 584 14%


374 385408

449

512

584

3%

6%

10%

14%

14%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0

100

200

300

400

500

600

700

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF MACHINING

CENTERS MARKET IN INDIA

Overview of machining centers in India

85

Indian machine tools industry produces a range of CNC machining centers covering small to very

large sizes. These machines are technologically more complex than turning machines. Typically, a

CNC machining center has 3 linear movements, one rotary movement, apart from features such as

tool changers, pallet changers etc. Indian machine tools meet the basic requirement of machining

center operations, and a number of models are produced with both horizontal and vertical spindle

configurations.

The current trend in machining centers is to have additional axes of movements to take on complex

machining requirements (sometimes as many as 6 or 7), high traverse rates and spindle speeds

Internationally, machining centers are mostly built with at least 5 axes.

Modern machines incorporate linear motors for high traverse rates, and integral motor spindles are

universally used. At the simpler end of the product spectrum, machines are configured to occupy

very small floor space suitable for line integration for mass production of auto components.

Major Indian machining center manufacturer & their locations

86


Ace Manufacturing System Bangalore Private

Batliboi Surat Private


HMT Bangalore Public

Jyoti CNC Rajkot Private

LMW Coimbatore Private

Lokesh Machine Tools Hyderabad Private

Premier Automobiles Pune Private

TAL Manufacturing Solutions Pune Private

Major foreign brands of machining centers

87

Company Location Location In India

Brother USA -

Chiron Germany Bangalore

DMG Germany Bangalore

Doosan South Korea Bangalore (Technical Centre)

Fanuc Japan -

Feeler Taiwan -

HAAS USA Delhi (Technical center)

Heller USA Pune (Sales & Service)

Horkos Japan -

Howa Japan -

Hyundai South Korea -

Kitamura Japan -

Komatsu NTC Japan -

MAG Germany Bangalore ( Technical Centre )

Makino Japan Technical center (Bangalore, & Manesar, Haryana)

Mazak Japan Pune (Technical center)

Mori-Seiki Japan Delhi (Technical center)

Starrag Switzerland Bangalore

VERTICAL MACHINING CENTER

Market demand for FY 2013 - vertical machining center

89

Total market demand for vertical machining centers in India (in Units) (Domestic + Import) : 3750 - 3850

Total market demand for vertical machining centers in India (in Rs Cr) (Domestic + Import): 1360 - 1400

74%66%

26%34%

In Units In Rs Cr

Domestic Import


3750 - 3850 1360 - 1400

In terms of Unit domestic supplier contribute major market of vertical machining center, whereas in terms of

value foreign brands contribute major market share

Foreign companies supply high value product

In Units in Rs Cr

Domestic 2800 - 2850 900 – 920

Import 950 - 1000 460 -480

Total 3750 - 3850 1360 - 1400


Segment wise market breakup of vertical machining center (VMC)

(Domestic)

90

SegmentValue

(In Rs Cr)

Auto Component 387 – 392

Auto OEM 198 – 203




Others 90 – 92

Total 900 – 920

43%

22%

11%

10%

4%10%


Auto Component Auto OEMHeavy Engineering General EngineeringAerospace & Defence Others


Vertical Machining centers Domestic market break

up based on Technology (Table size in mm)

40% 30% 20% 10%


upto 500 500 - 800 800 - 1000 Above 1000

Market size for FY 2013 - vertical machining center (Import)

91

Vertical Machining centers import market break up based on

type

60%

92%

40%

8%

In Units In Rs Cr

New Used

950 - 1000 460 - 480

Total market for vertical machining centers in India (in Units) (Import) : 950 - 1000

Total market for vertical machining centers in India (in Rs Cr) (Import): 460 - 480

Vertical Machining centers import market break up based on

Technology (Table size in mm)

40% 15% 15% 10% 20%


upto 500 500 - 800 800 - 1000

1000 - 1500 Above 1500

Taiwan, Korea, Japan and Singapore based

companies contribute more than 80% of market

share of new machineries


Market analysis for import of vertical machining center for FY 2013 -

Brand wise

92

Brand Name

New Machinery Used Machinery TotalMarket Share based

on Rs Cr

Quantity(in units)

Value (In Rs Cr)

Quantity (in units)

Value (In Rs Cr)

Quantity(in units)

Value (In Rs Cr)

New Used

MAKINO 52 29.9 9 0.4 61 30.3 7% 1%

HAAS 97 25.6 0 0 97 25.6 6% 0%

MAZAK 37 21.4 10 0.8 47 22.1 5% 2%

FEELER 36 30 9 0.4 45 21.7 7% 1%

CHIRON 5 29 18 6.6 23 28 7% 17%

DMG 29 17.1 10 2 39 19 4% 5%

HOWA 11 12.8 3 1.2 14 14 3% 3%

DOOSAN 45 12.8 1 0.8 46 13.6 3% 2%

HYUNDAI 26 12.8 3 0.4 29 13.2 3% 1%

HURCO 48 8.5 4 0 52 8.5 2% 0%

MORI SEIKI 7 8.5 17 1.6 24 10.1 2% 4%

HARTFORD 16 8.5 16 0.8 32 9.3 2% 2%

KITAMURA 4 8.5 11 0.8 15 9.3 2% 2%

YCM 22 4.3 7 0.4 29 4.7 1% 1%

HWACHEON 11 4.3 1 0 12 4.3 1% 0%

OTHERS 146 197.3 275 21.8 421 218.9 46% 57%

Total 592 431.3 394 38 986 452.6



Others include Pinnacle, Visionwide, Leadwell, Dahlih, Hermle, Victor, Cosmos etc.

Market analysis for import of vertical machining center for FY 2013 -

Country wise

93

Country


on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)New Used

Taiwan 213 158.0 93 7.4 306 165.4 37% 19%

Korea 84 64.1 5 2.0 89 66.0 15% 5%

Japan 69 59.8 75 8.6 144 68.4 14% 22%

Singapore 59 59.8 12 1.2 71 61.0 14% 3%

Germany 29 38.4 35 9.8 64 48.2 9% 25%

USA 100 29.9 35 1.6 135 31.5 7% 4%

Poland 9 4.3 1 0.0 10 4.3 1% 0%

China 16 4.3 0 0.0 16 4.3 1% 0%

UK 1 0.0 28 1.2 29 1.2 0% 3%

Belgium 0 0.0 6 0.8 6 0.8 0% 2%

Canada 0 0.0 8 0.4 8 0.4 0% 1%

Italy 0 0.0 63 2.7 63 2.7 0% 7%

Others 12 8.5 33 3.5 45 12.1 2% 9%

Total 592 427 394 39 986 466



Segment wise market breakup of vertical machining center (VMC)

(Import)

94

SegmentValue

(In Rs Cr)





Die & Mould 46 – 48

Railway 36 – 38

Others 46 – 48

Total 460 - 480

25%

20%

15%

12%

10%

8%

10%


Aerospace & Defence Auto & Auto Component

Heavy Engineering General Engineering

Die & Mould Railway

Others


Market forecast of VMCs for next 5 years

95

Year

Projected

market size

(In Rs Cr)

Growth in %

FY 2013 1376

FY 2014 1358 -1%

FY 2015 1490 9%

FY 2016 1689 12%

FY 2017 2047 17%

FY 2018 2432 16%

1376 13581490

1689

2047

2432

-1%

9%

12%

17% 16%

-0.02

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0

500

1000

1500

2000

2500

3000

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




HORIZONTAL MACHINING CENTER

Market demand for FY 2013 - horizontal machining center

97

Total market demand for horizontal machining centers in India (in Units) (Domestic + Import ) : 760 - 800

Total market demand for horizontal machining centers in India (in Rs Cr) (Domestic + Import): 1125 - 1145

34%

23%

66%

77%

In Units In Rs Cr

Domestic Import

760 - 800 1125 - 1145

Horizontal Machining centers market break up based on source

In Units in Rs Cr

Domestic 260 - 280 255 - 265

Import 500 - 520 870 - 880

Total 760 - 800 1125 - 1145


Market demand for FY 2013 - horizontal machining center


98

Total market demand for horizontal machining centers in India (in Units) (Domestic Sales) : 260 - 280

Total market demand for horizontal machining centers in India (in Rs Cr) (Domestic Sales): 255 - 265

93% 93%

7% 7%

In Units In Rs Cr

Domestic Export

280 - 305 273 - 287

42% 38% 20%


400 mm 400 - 630 mm Above 630 mm

Horizontal Machining centers Domestic market break up

based on source

Horizontal Machining centers Domestic market break up based

on Technology (Table size in mm)


Segment wise market breakup of horizontal machining center (HMC)


99

40%

22%

19%

9%

10%



General Engineering Heavy Engineering

Others

SegmentValue

(In Rs Cr)


Auto OEM 55 – 57



Others 22 - 30

Total 255 - 265

Other Segment include Aerospace, Railway, Die & Mould, Consumer Durables etc

General Engineering includes Pumps, Compressors, Valves, Flanges, Blowers, material handling, etc

Heavy engineering includes turbines, boilers, cement and mining machinery, wind components etc


Market demand for FY 2013 - horizontal machining center (Import)

100

Horizontal Machining centers import market break up based on

type

78%

97%

In Units In Rs Cr

New Used

500 - 520 870 - 880

Total market demand for horizontal machining centers in India (in Units) (Import) : 500 - 520

Total market demand for horizontal machining centers in India (in Rs Cr) (Import): 870 - 880

32% 28% 23% 17%


400 mm 400 - 630 mm

630 - 800 mm Above 800 mm

Horizontal Machining centers Import market break up based on

Technology (Table size in mm)

Japan, Germany and Korea are the major supplier

of Horizontal Machining center contribute more

than 90% market share

(Makino, Mazak, MAG, Mori Seiki, Komatsu,

Horkos and Doosan)


Market analysis for import of horizontal machining center for FY 2013 -

Brand wise

101


Market Share based on Rs Cr

Quantity(in units)

Value (In Rs Cr)

Quantity (in units)

Value (In Rs Cr)

Quantity(in units)

Value (In Rs Cr)

New Used

KOMATSU NTC 57 118 0 0 57 118 15% 0%

MAKINO 44 85 9 1.4 53 86 11% 6%

MAG 28 68 0 0 28 68 7% 0%

MAZAK 34 59 12 1.4 46 61 9% 6%

MORI SEIKI 31 59 7 1.7 38 61 8% 7%

DMG 28 59 1 0.2 29 59 7% 1%

HORKOS 23 42 0 0 23 42 6% 0%

DOOSAN 36 42 0 0 36 42 9% 0%

WMW 15 25 4 0.5 19 26 4% 2%

HYUNDAI 24 25 7 0.5 31 26 6% 2%

HOWA 8 17 0 0 8 17 2% 0%

KITAMURA 8 17 6 0.2 14 17 2% 1%

MITSUI SEIKI 2 8 10 1 12 9 1% 4%

HASS 8 0 0 0 8 0 2% 0%

HELLER 1 0 2 3.8 3 4 0% 16%

HITACHI SEIKI 0 0 9 1 9 1 0% 4%

Niigata 2 4 4 1.8 6 5.8 1% 8%

GRAB 1 6.8 1 0.9 2 7.7 0% 4%

Dorries Scharmann 0 0 5 2.4 5 2.4 0% 10%

Others 43 209.2 35 7.1 78 216.1 11% 30%

Total 393 845 112 24 505 869 100% 100%



Others includes Dahlih, Huller Hill, Matsuura, Orion, Weida, Weeke etc.

Market analysis for import of horizontal machining center for FY 2013 -

Country wise

102

Country


on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)New Used

Japan 232 540.8 40 4.56 272 545 64% 19%

Germany 73 160.6 16 6.96 89 168 19% 29%

Korea 60 67.6 3 0.24 63 68 8% 1%

Taiwan 5 8.5 3 0.24 8 9 1% 1%

China 6 8.5 0 0 6 8 1% 0%

USA 8 0.0 4 2.88 12 3 0% 12%

Italy 1 0.0 17 3.36 18 3 0% 14%

UK 0 0.0 15 1.2 15 1 0% 5%

Others 8 59.2 14 4.56 22 64 7% 19%

Total 393 845 112 24 505 869



Segment wise market breakup of horizontal machining center (HMC)

(Import)

103



Auto & Auto Component 260 - 265


Others 130 - 133

Total 870 - 880

35%

30%

20%

15%


General Engineering Auto & Auto Component

Heavy Engineering Others

Imported brands are majorly contributed in general engineering and heavy engineering segment because of

requirement of high quality machines

Other Segment include Aerospace, Railway, Die & Mould, Consumer Durables etc

General Engineering includes Pumps, Compressors, Valves, Flanges, Blowers, material handling, etc

Heavy engineering includes turbines, boilers, cement and mining machinery, wind components etc



104





Number of axis 3 3, 4, 5 and more than 5

Tool change time 3 - 9 Seconds 2 - 3 Second

Spindle speed <15000 rpm >15000 rpm

Rapid Traverse Rate 60 mpm Above 60 mpm

Accuracy 5 – 10 Microns 2 – 3 Microns

Hard part machining 45 HRC 60 HRC

It is to be noted that the above is indicative for the overall Indian machine tool industry. How ever a few major

Indian Companies like BFW, Jyoti, AMS etc are able offer higher specification

Indian machine tool industry produces a range of CNC machining centers covering small to Medium sizes.

These machines are technologically more complex than turning machines. Indian machine tools meet the

basic requirement of machining center operations, and a number of models are produced with both horizontal

and vertical spindle configurations. Machines with spindle speeds of up to 15000 rpm, traverse rates of up to

60 mpm are produced by the Indian industry.

The current trend in machining centers is to have additional axes of movements to take on complex machining

requirements (sometimes as many as 6 or 7), high traverse rates of 100 to 120 mpm, spindle speeds of 10000

to 50000 rpm, some turning and even grinding capabilities on the maching center.

Segment wise usage pattern of machining center

105

Name

Segment

Major BrandsNumber of

axis

Spindle

speed (rpm)

Spindle

Power

(Kw)

Table Size


Auto OEMBFW, Jyoti CNC,

HMT, AMS, TAL

Mazak, Makino,

Doosan3, 4, 5

4000,8000,

10000,1200015 - 20 400 - 1500

Auto

Components

BFW, Jyoti,

Lokesh, TAL

Mazak, Makino, Himach,

Mori Seiki3, 4, 5

4000,8000,

100007.5 - 20 300 - 1500

AerospaceAMS, HMT, BFW,

Jyoti CNC, TAL

OKK, HAAS, Deckel

Maho, Makino3, 4, 5

3000, 8000,

1000015, 21 300, 500, 1500

Die & Mould AMS, BFW, LMW Makino, HAAS 3, 4, 5 5000, 8000 7.5-11 350 - 800

Forging

Jyoti CNC, AMS,

LMW, BFW,

Kirloskar

Doosan, Deckel Maho 3, 4, 53000, 5000,

80007.5 - 15 400 - 1000

Segment wise usage pattern of machining center

Name

Segment

Major BrandsNumber of

axis

Spindle

speed

(rpm)

Spindle

Power

(Kw)

Table

Diameter


General

Engineering BFW, Jyoti CNC, AMS

Mazak, Makino, Deckel

Maho3, 4, 5

5000,1200

010-20 630, 1000

Construction

& Mining

Equipment

Jyoti CNC, HMT, BFW Doosan, Makino 3, 4, 58000

,100007.5 800- 2500

DefenseBFW, HMT, Jyoti CNC,

AMSMazak, Makino, Tajmak 3, 4, 5

5000,1000

0, 1200011, 40

350, 1000,

1500,

2000, 3000

Heavy

EngineeringHMT, Jyoti CNC, BFW

HAAS, Mazak, Deckel

Maho3, 4, 5

3000,

6000,

8000

30500, 630,

700, 1260

RailwayBFW, HMT, Jyoti CNC,

AMSMakino, Doosan 3, 4, 5

10000,

1500018, 21, 40

500, 800 ,

1500

106

Market forecast of HMCs for next 5 years

107

Year

Projected

market size

(In Rs Cr)

Growth in %

FY 2013 1127

FY 2014 1197 6%

FY 2015 1319 9%

FY 2016 1471 10%

FY 2017 1653 11%

FY 2018 1883 12%


11271197

1319

1471

1653

18836%

9%

10%

11%

12%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0

200

400

600

800

1000

1200

1400

1600

1800

2000

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MILLING MACHINE

Overview of milling machines

109

A Milling machine is a machine tool used for the complex shaping of Metal and other Solid materials.

Its basic form is that of a rotating cutter or end mill which rotates about the spindle axis (similar to a

drill) and a movable table to which the work piece is affixed.

The cutting tool generally remains stationary (except for its rotation) while the work piece moves to

accomplish the cutting action.

Milling machines may be operated manually or under computer numerical control.

Milling machines can perform a vast number of complex operations, such as slot cutting, planning,

drilling, rebating, routing, etc.

Cutting fluid is often pumped to the cutting site to cool and lubricate the cut, and to sluice away the

resulting swarf.

There are two main types of mill: the vertical mill and the

horizontal mill. In the vertical mill the spindle axis is

vertically oriented.

Milling cutters are held in the spindle and rotate on its

axis. The spindle can generally be extended (or the table

can be raised/lowered, giving the same effect), allowing

plunge cuts and drilling.

There are two subcategories of vertical mills: the bedmill

and the turret mill

A horizontal mill has the same sort of x–y table, but the

cutters a remounted on a horizontal arbor across the

table

Major Indian milling machines manufacturers & their locations

110



Batliboi Surat Private

HMT Pinjor Public limited

Geeta Machine Tools Rajkot Private

Major foreign suppliers of milling machines & their locations

111

Company Location

Hyundai South Korea

Mecof Italy

Makino Japan

Cincinnati Inc USA

Hass USA

Mazak Japan

WMW Germany

Heller Germany

Company Location

Stankoimport Russia

Hurth Germany

Mikron Switzerland

Kuraki Corp Japan

Primero Taiwan

Mitsubishi Japan

Zayer Spain

Goratu Spain

Spinner Automation Germany

Market demand for FY 2013 milling machines

112

Total market demand for milling machines in India (in Units) (Domestic + import) : 3210- 3330

Total market demand for milling machines in India (in Rs Cr) (Domestic + Import): 495 - 530

13% 8%

87% 92%

In Units In Rs Cr

Domestic Import

3210 - 3330 495 - 530

Total market breakup based on source

The Market for Milling Machine is majorly driven by the foreign suppliers

There are very few organized manufacturers in domestic market

In Units in Rs Cr

Domestic 410 - 430 45 – 50

Import 2800 - 2900 450 - 480

Total 3210 - 3330 495 - 530


Market demand for FY 2013 milling machines (Domestic)

113

Total market demand for milling machines in India (in Units) (Domestic Sale) : 410 - 430

Total market demand for milling machines in India (in Rs Cr) (Domestic Sale ): 45 - 50

7% 7%

93% 93%

In Units In Rs Cr

CNC Non CNC

Sales breakup based on type

410 - 430 45 - 50


In Units in Rs Cr

CNC 28 - 30 31 - 35

Non CNC 382 - 400 14 - 15

Total 410 - 430 45 – 50

Segment wise market breakup of milling machines for FY 2012-13

(Domestic)

114


Education Centers 13 – 15

Auto & Auto Component 12 - 14

Defence 4 - 5


Aerospace 2 - 3

Railway 2 - 3

Die & Mould 2 - 3

Other 6 - 7

Total 45 - 55

Other include consumer durable, shipbuilding, electrical etc


30%

25%10%

10%

4%

5%

5%

11%


Education Centers Auto & Auto Component

Defence General Engineering

Aerospace Railway

Die & Mould Others

Market demand for FY 2013 - milling machines (Import)

115

Total market demand for milling machines in India (in Units) (Import) : 2800 - 2900

Total market demand for milling machines in India (in Rs Cr) (Import): 450 - 480

55%

88%

45%

12%

In Units In Rs Cr

New Used

2800 - 2900 450 - 480

Import breakup based on type

Italy, US, Japan & Germany are the major foreign supplier of new milling machines

These countries supply high value machines

China is the highest milling machines supplier in terms of units but the value of these machine is very less

There is huge demand of used milling machines in India

Italy, Japan, Germany, US, UK and France are the major supplier of used machines

In Units In Rs Cr

New 1550 - 1600 400 – 420

Used 1250 - 1300 50 - 60

Total 2800 - 2900 450 - 480


Market analysis for import of milling machines for FY 2013

- Country wise

116

Country Name


on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)New Used

Italy 22 65.92 204 7.98 226 73.9 16% 14%

US 83 61.8 57 3.42 140 65.22 15% 6%

Japan 17 57.68 72 14.82 89 72.5 14% 26%

Germany 36 57.68 187 12.54 223 70.22 14% 22%

China 1057 20.6 28 0.57 1085 21.17 5% 1%

Taiwan 283 12.36 33 0.57 316 12.93 3% 1%

UK 8 0 215 3.99 223 3.99 0% 7%

France 6 0 335 6.27 341 6.27 0% 11%

Others 91 135.96 168 6.84 259 142.8 34% 12%

Total 1603 412 1299 57 2902 469

Total market demand for milling machines in India (in Units) (Import) : 2800 - 2900

Total market demand for milling machines in India (in Rs Cr) (Import): 450 - 480


117





Number of axis 2 and 3 Up to 5

Spindle Power Up 10 KW > 10 KW

Speed Range 45 - 2000 rpm 20 - 18000 rpm

Segment wise usage pattern of milling machines

118

Name SegmentMajor Brands


Auto OEM HMT, Batliboi, BFW Manford, Makino, DMG, Mori Seiki

Auto Components HMT, Batliboi, Geeta Machine

ToolsManford, Makino, DMG, Mori Seiki

Aerospace HMT, BFW Manford, DMG, Mori Seiki

General Engineering

BFW, HMT, Batliboi, Geeta

Machine Tools Makino, DMG

Defense HMT, BFW Makino, DMG, Mori Seiki

Railway HMT, BFW DMG, Mori Seiki

Market forecast of milling machines for next 5 years

119

Year

Projected

market size

(In Rs Cr)

Growth in %

FY 2013 514

FY 2014 509 -1%

FY 2015 544 7%

FY 2016 599 10%

FY 2017 677 13%

FY 2018 772 14%


514 509544

599

677

772

-1%

7%

10%

13%

14%

-0.02

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0

100

200

300

400

500

600

700

800

900

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




GRINDING MACHINES

Overview of grinding machines in India

121

Indian Manufacturer produces a range of machines in small to large sizes, but the more advanced

technology features are not yet available on Indian machines except on special machines built to

order for specific applications.

The quality of grinding machines depend on accuracy, surface finish and high process capability.

Being a finishing process, grinding machines are built with great care for vibration damping, thermal

control and similar other factors which have a bearing on the final component accuracies and finish.

As an example, modern grinding machine beds are made not from cast iron but a proprietary material

called Graniton, which is a mix of granite in an epoxy resin in controlled proportion.

These beds are claimed to have high damping, good thermal resistance and thereby to deliver

superior performance.

In surface grinding, features like creep-feed grinding are commonly offered from international

manufacturers, whereas in India very few manufacturers having capability to supply these kind of

technology. Such machines are required by the tool and die making industries, which are on a

growth path in India at present.

The grinding machine is used for roughing and

finishing flat, cylindrical, and conical surfaces;

finishing internal cylinders or bores; forming and

sharpening cutting tools; snagging or removing rough

projections from castings and stampings; and

cleaning, polishing, and buffing surfaces.

Once strictly a finishing machine, modem production

grinding machines are used for complete roughing

and finishing of certain classes of work

Major Indian grinding machines manufacturers & their locations

122


Micromatic Grinding Technologies Faridabad Private

Alex Machine Tools Mumbai Private

Parishudh Machine Tools Ghaziabad Private

Lavingia Enterprise Ahmedabad Private

PMT Machine Tools Pune Private

HMT Bangalore Public

Solitaire Machine Tools Vadodara Private

Wendt India Limited Hosur Private

Major foreign suppliers of grinding machines & their locations

123

Company Location

Morara Spa Italy

Estarta Spain

Falcon Taiwan

Jakobsen Precision USA

Toyoda (JTEKT) Japan

L Kellenberg Germany

HTT Hauser Germany

Company Location

Paragon Machinery Taiwan

Profiltech Switzerland

Doimak SA Spain

Landis USA

Proth Industrial

CompanyTaiwan

Jones and Shipman UK

Emag Germany

MIkrosa, Schaudt,

StuderGermany

Market demand for FY 2013 - grinding machine

124

34% 32%

66% 68%

In Units In Rs Cr

Domestic Import

Total market demand for grinding machine in India (in Units) (Domestic + Import) : 2700 - 2740

Total market demand for grinding machine in India (in Rs Cr) (Domestic + Import): 920 - 940

2700 - 2740 920 - 940


In Units in Rs Cr

Domestic 930 - 950 295 – 305

Import 1770 - 1790 625 – 635

Total 2700 - 2740 920 - 940


Market demand for FY 2013 - grinding machines

(Domestic Sale)

125

Total market demand for grinding machine in India (in Units) (Domestic Sales) : 930 - 950

Total market demand for grinding machine in India (in Rs Cr) (Domestic Sales): 295 - 305

Domestic sales breakup based on type of machine

980 - 1000 310 - 320

91% 95%

9% 5%

In Units In Rs Cr

Cylindrical Grinding Machine

Surface Grinding Machine


In Units in Rs Cr

Cylindrical Grinding

Machine83 - 85 14 - 15

Surface Grinding

Machine847 - 845 281- 290

Total 930 - 950 295 – 305

Market demand for FY 2013 - grinding machine (Import)

126

Total market demand for grinding machine in India (in Units) (Import) : 1770 - 1790

Total market demand for grinding machines in India (in Rs Cr) (Import): 625 - 635

1770 - 1790


33%

88%

67%

12%

In Units In Rs Cr

New Used

625 - 635


63% 89%

9% 11%

In Units In Rs Cr

Cylindrical Grinding Machine

Surface Grinding Machine

1770 - 1790 625 - 635


Market analysis for import of grinding machine for FY 2013

- Brand wise

127

Brand Name New Machinery

Market Share

based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)New

KENT 41 5.5 1.0%

SOCO 26 0.6 0.1%

Perfect 23 1.7 0.3%

PARAGON 20 9.9 1.8%

IZUMI 18 23.7 4.3%

PALMARY 18 6.1 1.1%

WANDA 17 1.7 0.3%

OKAMOTO 14 5.5 1.0%

HAVEN 13 0.6 0.1%

PROTH 13 1.1 0.2%

SAFEWAY 13 0.0 0.0%

TOYODA 10 39.1 7.1%

YAZHONG 9 6.1 1.1%

HITEC 8 0.6 0.1%

ALLIED 7 0.0 0.0%

KOYO 7 16.0 2.9%

SEEDTEC 7 0.6 0.1%

WMW 7 17.6 3.2%

ANCA FASTGRIND 6 6.1 1.1%

GARBOLI 6 0.0 0.0%

JTEKT 6 29.8 5.4%

LANDIS 6 22.0 4.0%

Others 290 357.0 64.8%

Grand Total 585 551

Brand Name Used Machinery

Market Share

based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)Used

JONES & SHIPMAN 108 1.2 1.5%

NA 77 9.0 11.6%

CINCINNATI 70 6.2 7.9%

TOS 68 1.5 1.9%

WMW 55 2.0 2.5%

ELB 36 1.0 1.3%

BLOHM 28 1.0 1.3%

JAKOBSEN 26 0.5 0.6%

BROWN AND SHARPE 18 0.2 0.3%

OKAMOTO 17 0.4 0.5%

ABA 15 0.7 0.9%

FORTUNA 15 0.3 0.4%

JUNG 15 0.9 1.2%

MIKROSA 15 1.8 2.3%

STANKO 15 0.3 0.4%

VOUMARD 13 0.5 0.6%

ALPA 12 0.3 0.4%

MATRIX 12 0.5 0.6%

SCHAUDT 12 0.2 0.2%

ELLIOT 11 0.1 0.1%

FAVRETTO 11 0.5 0.6%

Others 544 49.1 63%

Grand Total 1193 78



Market analysis for import of grinding machine for FY 2013

- Country wise

128

Country Name

New Machinery

Market Share

based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)New

JAPAN 100 237 43%

GERMANY 54 88 16%

ITALY 31 44 8%

UNITED KINGDOM 16 33 6%

CHINA 113 22 4%

TAIWAN 174 28 5%

KOREA,REPUBLIC OF 11 11 2%

SWEDEN 7 11 2%

UNITED STATES 15 11 2%

THAILAND 10 6 1%

SINGAPORE 11 6 1%

Others 43 33 8%

Grand Total 585 551

Country Name Used Machinery

Market Share

based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)Used

BELGIUM 28 0.8 1%

CANADA 40 0.0 0%

CZECH REPUBLIC 34 1.6 2%

FRANCE 77 1.6 2%

GERMANY 232 14.0 18%

ITALY 164 14.0 18%

JAPAN 77 17.2 22%

ROMANIA 12 0.0 0%

RUSSIA 13 3.9 5%

SINGAPORE 26 0.8 1%

SPAIN 12 0.8 1%

SWITZERLAND 22 4.7 6%

UNITED KINGDOM 223 4.7 6%

UNITED STATES 154 11 14%

Others 79 3.1 4%

Grand Total 1193 78



Segment wise market breakup of grinding machine for FY 2012-13

129



Auto OEM 210 – 215


Die & mould 81 -82

Others 89 – 91

Total 920 - 940

35%

23%

23%

9%

10%



General Engineering Die & mould

Others


Market forecast of grinding machines for next 5 years

130

Year

Projected

market size

(In Rs Cr)

Growth in %

FY 2013 929

FY 2014 948 2%

FY 2015 995 5%

FY 2016 1094 10%

FY 2017 1237 13%

FY 2018 1398 13%


929 948995

1094

1237

1398

2%

5%

10%

13% 13%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0

200

400

600

800

1000

1200

1400

1600

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




TOOL GRINDING MACHINES

Major Indian tool cutter grinder manufacturers & their locations

132


HMT Bangalore Public limited

Kennametal Bangalore Private

Praga Tools Secunderabad Private

Tool Grinding Technologies Bangalore Private

Market demand for FY 2013 - tool grinding machines

133

40%

60%

60%

40%

In Units In Rs Cr

Domestic Import

Total market demand for tool grinding machines in India (in Units) (Domestic + Import) : 350 – 380

Total market demand for tool grinding machines in India (in Rs Cr) (Domestic + Import): 100 - 110

350 - 380 100 - 110


In Units in Rs Mn

Domestic 140 – 150 60 - 65

Import 210 - 230 40 - 45

Total 350 - 380 100 - 110


Market demand for FY 2013 - tool grinding machines

(Domestic Sale)

134

Total market demand for tool grinding machines in India (in Units) (Domestic Sales) : 140 - 150

Total market demand for tool grinding machines in India (in Rs Cr) (Domestic Sales): 60 - 65

There is no export sale of tool grinding machines from India

Very few organized companies are manufacture tool cutter grinders

Companies like Kennametal & TGT are the only companies supplying CNC type of tool cutter grinder

24%

42%

76%

58%

In Units In Rs Cr

CNC Non CNC

Domestic sale breakup based on type of machine

140 - 150 60 - 65


In Units in Rs Mn

CNC 106 - 112 34 - 37

Non CNC 34 - 38 26 - 28

Total 140 – 150 60 - 65

Segment wise market breakup of tool grinding machines for FY 2012-13


135

Segment Market (in Rs Mn)


Auto OEM 15 -16


Die & mould 6 – 7

Others 7 - 8

Total 60 - 65

35%

25%

21%

9%

10%


Aoto Component Auto OEM

General Engineering Die & Mould

Others


Market demand for FY 2013 - tool grinding machines (Import)

136

Total market demand for tool grinding machines in India (in Units) (Import Sales) : 210 - 230

Total market demand for tool grinding machines in India (in Rs Cr) (Import Sales): 40 - 45

215 - 240 40 - 45

51%

12%

49%

88%

In Units In Rs Cr

Used New

Import market break up based on type

Machine tool considered under Tool cutter grinder in

import

- tool grinding machines

- Sharpening machines

In Units In Rs Cr

New 105 - 120 35 - 38

Used 110 - 120 5 - 7

Total 215 - 240 40 - 45


Market analysis for import of tool grinding machines for FY 2013


137


Market Share based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)New Used

Germany 8 5.8 19 1.3 27 7.0 16% 25%

US 7 5.4 26 0.3 33 5.7 15% 5%

Japan 3 5.0 2 0.0 5 5.0 14% 0%

Switzerland 3 2.5 5 0.5 8 3.0 7% 9%

Taiwan 15 1.1 1 0.0 16 1.1 3% 0%

China 54 0.7 2 0.0 56 0.7 2% 0%

Italy 3 0.4 6 0.1 9 0.4 1% 1%

UK 0 0.0 23 1.1 23 1.1 0% 21%

Others 16 15.1 28 2.0 44 17.1 43% 39%

Total 109 36 112 5 221 41


Market Share based

on Rs Cr

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)

Quantity

(in units)

Value

(In Rs Cr)New Used

Anca 10 14.4 0 0.0 10 14.4 40% 0%

Deckel 6 1.4 1 0.6 7 2.0 4% 11%

Cincinnati 1 0.0 29 0.2 30 0.2 0% 4%

BROWN & SHARPE 0 0.0 4 0.1 4 0.1 0% 1%

JONES & SHIPMAN 0 0.0 4 0.1 4 0.1 0% 1%

WALTER 0 0.0 6 0.1 6 0.1 0% 1%

Other 92 20.2 68 4.1 160 24.3 56% 84%

TOTAL 109 36 112 5 221 41

Others contribute majorly Chinese brands

Total market demand for tool grinding machines in India (in Units) (Import Sales) : 210 - 230

Total market demand for tool grinding machines in India (in Rs Cr) (Import Sales): 40 - 45

Segment wise market breakup of tool grinding machines for FY 2012-13

(Import)

138

Segment Market (In Rs Cr)


Auto OEM 9 - 10


Die & mould 6 - 7

Aerospace & defense 3 - 4

Others 6 - 7

Total 40 - 45

20%

15%

26%

15%

9%

15%


Auto OEM Aoto Component

General Engineering Die & Mould

Aerospace & Defence Others

Aerospace, Defense and Dies & Mould segment majorly use imported tool grinding machinesSource : BDB Analysis


139


Accuracy > 0.5 Micron < 0.5 micron

Surface Finish Satisfied Satisfied

High process

capabilitySatisfied Satisfied

Vibration Damping High High

Thermal Control Thermal resistant Thermal resistant

Machine bed materialCast Iron and Graniton

(as per end user requirement)

Graniton (Granite + Epoxy resin)

(commonly used)

Creep feed

technology (Surface

grinding machine)

New technology

(supplying as per end user requirement)New technology (commonly offer)

Delivery time Period > 6 Month < 3 Month

In surface grinding, features like creep-feed grinding are commonly offered from international

manufacturers, whereas Indian manufacturer offer as per end user requirement. Such machines are required by

the tool and die making industries

Segment wise usage pattern of grinding machine

140

Major Brands


Auto OEM ACE Micromatic, HMT, TGTLandis, Meccanodora,

SEBIT-Christen, Mazak

Auto Components ACE Micromatic, HMT Landis, Meccanodora

Aerospace ACE Micromatic Kent, Perfect

Die & Mould ACE Micromatic, HMT, Rajkot, Sharda, Landis, Emag, Jones & Shipman

General Engineering ACE Micromatic, Levingia, JONES & SHIPMAN, Deckel

Defense ACE Micromatic Hitech, Deckel

Market forecast of tool grinding machines for next 5 years

141

Year

Projected

market size

(In Rs Cr)

Growth in %

FY 2013 100

FY 2014 97 -3%

FY 2015 102 5%

FY 2016 111 9%

FY 2017 125 13%

FY 2018 144 15%

Source : BDB AnalysisProjected market size (In Rs Cr)

100 97 102111

125

144

-3%

5%

9%

13%

15%

-0.04

-0.02

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0

20

40

60

80

100

120

140

160

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




SPECIAL PURPOSE MACHINES

Overview of special purpose machines in India

143

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.

This is a very encouraging feature of the industry in that these machines represent high value

machines and are more knowledge based in their design and execution.

Apart from the large industries, there are a number of machine tools builders in the small and medium

category, which have developed this capability over the years, and cater to the requirements of the

automobile, consumer and defence sectors. In fact these machines are very price competitive

compared to imported equivalents.

The special purpose machines manufactured in

India often incorporate the most advanced

features of technology from all over the

world, which are effectively engineered to deliver

the required functional capabilities to the

customer.

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.

Defence, railways and aerospace are frequent

users of special purpose machines from the

Indian machine tools industry apart from the auto

component sector.

Major Indian special purpose machines manufacturers & their locations

144


HMT Bangalore Public Ltd

Batliboi Bangalore Private


Kennametal Bangalore Private

Premier Pune Private

Lokesh Machine Hyderabad Private

TAL Pune Private

HEC Ranchi Public Ltd

Bosch Bangalore Private

Esskay Machine Tools Hyderabad Private

Market demand for FY 2013 - special purpose machines

145

Total market demand for special purpose machines in India (in Units) (Domestic + Import) : 320 - 340

Total market demand for special purpose machines in India (in Rs Cr) (Domestic + Import): 360 - 400

84%74%

16%26%

In Units In Rs Cr

Domestic Import

320 - 340

Total market breakup based on source

360 - 400

Source In Units in Rs Cr

Domestic 270 - 280 280 - 300

Import 50 - 60 80 - 100

Total 320 - 340 360 - 400


Machines considered in SPM category include machining

centers, finish line boring machines, finish milling

machines, rotary milling machines, grinding machines

Market demand for FY 2013 - special purpose machines (Domestic)

146

Total market demand for special purpose machines in India (in Units) (Domestic) : 270 - 280

Total market demand for special purpose machines in India (in Rs Cr) (Domestic): 280 - 300

56%45%

44%55%

In Units In Rs Cr

Non CNC CNC

Sales breakup based on type

270 - 280 280 - 300


Source In Units in Rs Cr

CNC 118 - 123 154 - 165

Non CNC 152 - 157 126 - 135

Total 270 - 280 280 - 300

Segment wise market breakup of special purpose machines for

FY 2012-13 (Domestic)

147


Auto OEM 84 – 90





Railway 8 – 9

Others 19 – 21

Total 280 - 300

30%

25%

15%

12%

8%

3%7%


Auto OEM Auto Component

Aerospace & Defence Heavy Engineering

General Engineering Railway

Others


Market analysis for import of special purpose machines for FY 2013

- Country wise

148

Country Name

New Machinery

Quantity

(in units)

Value

(In Rs Cr)

Japan 26 60.83

China 5 18.79

Germany 2 5.56

Taiwan 6 2.68

USA 6 1.34

Others 5 1.79

Total 50 91

67%

21%

6%

3%

1%

2%


Japan China Germany

Taiwan USA Others

Market forecast of SPMs for next 5 years

149

Year

Projected

market size

(In Rs Cr)

Growth in %

FY 2013 372

FY 2014 361 -3%

FY 2015 368 2%

FY 2016 390 6%

FY 2017 425 9%

FY 2018 472 11%


372 361

368

390425

472

-3%

2%

6%

9%

11%

-0.04

-0.02

0

0.02

0.04

0.06

0.08

0.1

0.12

0

50

100

150

200

250

300

350

400

450

500

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



5. TRENDS IN THE END USER SECTORS

AUTOMOTIVE INDUSTRY

Automobile industry - market segmentation

152

Automobile Industry

Two Wheelers Three Wheelers Passenger Vehicles Commercial Vehicles

Motor Cycle

Scooters

Mopeds

Passenger Carrier

Goods Carrier

Passenger Cars

Utility Vehicles

Multi-purpose Vehicles

Light Commercial Vehicles

Medium Commercial Vehicles

Heavy Commercial Vehicles

Segment wise production trend Segment and their contribution in total

vehicle production (FY2012-13)

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Two Wheelers 8.03 8.42 10.51 13.35 15.43 15.72

Three Wheelers 0.50 0.50 0.62 0.80 0.88 0.84

Commercial Vehicles 0.55 0.42 0.57 0.76 0.93 0.83

Passenger Vehicles 1.78 1.84 2.36 2.98 3.15 3.23

0

2

4

6

8

10

12

14

16

18

20

Pro

du

cti

on

Qu

an

tity

in

Mil

lio

ns

10.8Million

11.7Million

14.6Million

17.89Million

20.38Million

20.63Million

16%

4%4%

76%

Passenger Vehicles

Commercial Vehicles

Three Wheelers

Two Wheelers

Source: SIAM

Overview of Indian automobile industry

153

India is the world’s 2nd largest two wheeler market

It is Asia’s 3rd largest Passenger Vehicles (PVs) market

The country is the world’s 5th largest bus and truck market

India is the world 4th largest commercial vehicles (CVs) market

RankingsAutomobile production & exports trend

10.85

11.17

14.06

17.89

20.38

20.63

1.24

1.53

1.80

2.32

2.91

2.90

0.00 5.00 10.00 15.00 20.00 25.00

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Million Units

Production Export

Source: SIAM

Two–wheeler sales is expected to rise from 15.9 Million units in FY2013 to 29.1 Million units by FY2020E

Passenger vehicle sales is expected to increase from 3.2 Million units in FY2013 to 9.0 Million units in FY2020E

Strong growth in demand due to rising income middle class and a young population is likely to propel India among

the world’s top five auto manufacturers by FY 2015

Production of automobiles have increased at a CAGR of 12.2% over FY05-13

Passenger vehicles and Commercial Vehicles are expected to increase at a CAGR of 16% during FY 2013-

20, while 2 & 3 wheelers are projected to expand at CAGR of 9% during 2013-20

Automobile clusters in India

154

Delhi-Gurgaon-

Faridabad- Pantnagar

Kolkata

Mumbai-Pune-Nasik

Aurangabad

Jamshedpur

Chennai Bangalore Hosur

North

Ashok Leyland Bajaj Auto

Swaraj Mazda Tata Motor

Maruti Suzuki Yamaha Motor

Honda SIEL Force Motor

Honda Motorcycle Suzuki Motor

Hero Honda Eicher Motor

West

Tata Motor Force Motor

Bajaj Auto Volkswagen

GM Motor Daimler Chrysler

Mahindra & Mahindra Eicher Motor

FIAT Piaggio

SKODA

South

Ashok Leyland Hyundai Motor

Toyota Ford Motor

TVS Motor Daimler Chrysler

Mahindra & Mahindra BMW Motor

Nissan Enfield

Hindustan Motor Volvo

East

Tata Motors

International Auto

Hindustan Motor

Automobile industry: upcoming projects & expansions

155

Hero MotoCorp - Will invest Rs 2,575 crore to set up two new manufacturing plants in Gujarat and Rajasthan

and R&D centre by FY2014

Yamaha Motors - The plant at Sriperimpudur near Chennai, to commence from early 2014, will have an initial

capacity of 400,000 units per annum and then the capacity will be scaled up to 1.8 million units per annum by

2018

Honda Motorcycles and Scooters - Is planning to setup new plant and has initiated discussions related to

finalizing details of the state support agreement with the Gujarat government in Mandal-Becharaji region

Nissan-Renault is planning to double production capacity to 800,000 units by 2016 from the current capacity

of 360,000 units at its plant near Chennai

Ford India has started work on its Rs 5,000 crore passenger cars unit in Sanand, Gujarat which is scheduled to

be completed by 2015

Mahindra & Mahindra (M&M) has proposed to invest Rs 3,000 crore to set up a manufacturing plant in

Uttarakhand. The plant will have a production capacity of 2.5 lakh units annually

Honda Cars India has planned to invest Rs 2500 crore in its Tapukara plant in Rajasthan to build a new

assembly line for cars with an annual installed capacity of 1,20,000 units, a new diesel engine component

production line and a Forging plant

Future estimate market - Automobile Segment

156

Estimated projected market size for Automobile Production

The Automobile segment experienced a dip during the FY 2012 - 13, main reasons being the rise in vehicle

prices owing to the excise duty hike coupled with high interest rate and increased fuel prices

Also, concerns about slowdown of domestic economy are deterring customers from making new purchases

However, by 2020, India's share in the global passenger vehicle market is expected to double to 8% from

4% over 2010 - 11

India aims to become a small car hub of the world by dethroning Japan, the biggest producer of compact cars, a majority of which is consumed domestically

21.92

21.9223.02

24.6326.35

28.46

10%

0%

5%

7% 7%8%

0%

2%

4%

6%

8%

10%

12%

0

5

10

15

20

25

30

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Automobile production (in Million Units) % Growth


AUTO COMPONENTS INDUSTRY

Classification of auto components industry

158

Auto Components

Engine &

Exhaust

Suspension &

Braking

Transmission

& Steering

Body &

Structural

Electronics &

Electricals

Equipments &

Others

Power Train

Component

Cooling system

& Parts

Fuel injection

system & Fuel

pump

Engine

head, Valve, Ca

m shaft

Connecting

rod, Piston,

Crank shaft

Leaf springs

Shock Absorbers

Brake linings

Brakes & Brakes

assemblies

Clutches

Axles

Steering

Systems

Wheel & Rims

Gears

Chassis

Plastic moulded

Parts

Body

sides, Doors,

Closure

Sheet Metal

Parts

Air conditioning

unit

Flywheel

magnetos

systems

Electrical

ignition system

Stator motors

Carburetors

Electric horns

Dashboard

instruments

Wiper motors

Headlights

Overview - Indian auto components industry

159

650Organized

Players

5350 Unorganized Players

77 %

23 %

Industry Structure Value added by the players

Market size trend of Auto Component Industry

1457.5

1265

1655.5

2194.5

2332

2233

0 500 1000 1500 2000 2500

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

In Rs billion

• The auto component sector is growing at approximately 20% per year. The Indian auto components industry has grown from Rs 1265 Billion in 2008-09 to 2233 Billion in 2012-13

• The Indian auto component industry’s turnover is projected to reach Rs 6325 billion by 2020-21. The industry is estimated to grow at a compound annual growth rate (CAGR) of 14% during 2013-21

31%

19%

12%

12%

10%

9%

7%

Engine Parts

Drive Transmission & Steering Parts

Body & Chassis

Suspension & Breaking Parts

Equipments

Electrical Parts

Others

Comprehensive Product Range

Source : ACMA Source : ACMA

Major auto component manufacturing cluster in India

160

Ludhiana, Bundala,

Pant Nagar

WESTERN CLUSTER

ASAL (Sheet Metal)

Bharat Forge (Forging)

Minda(Plastic Moulding)

Kalyani Forge (Forging)

Mahindra Forging (Forging)

MUSCO (SheetMetal)

Autoline Industries(Sheet Metal)

Ganage Pressings (Sheet Metal)

Varroc Group (Plastic Moulding)

Endurance Technologies (Die Casting)

Jayahind Industries (Die Casting)

Aurangabad Electricals(Die Casting)

Amtek Auto (Forging)

Caparo Engineering(Sheet Metal)

Magneta Marelli (Plastic Moulding)

GE Stamp (Sheet Metal)

NORTHERN CLUSTERJBM Group (Sheet Metal)

SKH Metals (Sheet Metal)

Rasandik Industries (Sheet Metal)

Omax Auto (Sheet Metal)

Sharda Industries (Sheet Metal)

Oswal Group (Die Casting)

Sunbeam Auto (Die Casting)

Rico Auto (Die Casting)

Shriram Pistons(Die Casting)

GNA Enterprises (Forging)

Shivam Autotech (Forging)

Sadhu Forging (Forging)

Sona Okegawa (Forging)

Lumax Industries (Plastic Moulding)

Motherson Group (Plastic Moulding)

A G Industries (Plastic Moulding)

Machino Plastics (Plastic Moulding)

SOUTHERN CLUSTER

Caparo Engineering (Sheet Metal)

Wheels India(Sheet Metal)

Hwashin Automotive (Sheet Metal)

Sundaram Clayton(Die Casing)

Endurance Technologies(Die Casting)

Enkei Cast Alloy(Die Casting)

Flotherm Engineers(Die Casting)

India Pistons(Die Casting)

Pricol(Plastic Moulding)

SMR Automotive(Plastic Moulding)

M M Forging(Forging)

E L Forge(Forging)

Super Auto Forge(Forging)

Rane Group(Forging)

Gurgaon, Noida, Faridabad

& Rewari

Bangalore, Chennai,

Hosur & Coimbatore

Pune, Nasik,

Aurangabad

The manufacturing plants of auto-component

players in India are usually located near their OEM

customers.

Pune-NCR-Chennai are the three major auto

component manufacturing cluster in India

Product category wise major auto component players

161

-- It is observed that majority of auto component suppliers are common to various auto OEMs

-- However, for some niche commercial vehicle components, due to specialized load bearing and design

requirements, some automobile component players are the vendors only to commercial vehicles

Product Segment Major Players

Transmission & Steering

Rico, Automotive Axle, RSB Transmission, Sona Koyo Steering, Rane Madras and

Rane TRW, Clutch Auto, Amalgamation Repco, Cheekay Daikin, Luk Clutches, GKN

drive shaft, Delphi, Bharat Gear, ZF Steering

Engine Parts

Escorts, India Pistons, Kirloskar Oil Engine, Bimetal Bearing, Goetze (India), Rane

Engine Valves, Shriram Pistons & Rings, Mico, Spaco Carburettors, Ucal Fuel,

Delphi, TVS Diesel System, Shriram Pistons & Ring, Menon Piston

Suspension & Braking

Automotive Axles, Brakes India, Kalyani Brakes, Munjal Showa, Jamna Auto, Rane

Brakes Lining, Sundaram Brakes, Jamna Auto, Jai Parabolic

Gabriel India, Delphi, Escorts

Equipments Lumax, Autolite, Phoenix Lamp, Minda, Pricol, Varroc, Roots, Subros, Visteon

Body & StructuralJay Bharat Maruti, Caparo, TACO, Omax Auto, JBM Group, Ganage Pressing,

Automotive Stamping

Electrical Parts Lucas TVS, Denso, Delco Remy Electricals and Nippon Electricals, Delphi

Continue..

162

Product Segment Major Players

Sheet Metal Component

Caparo Engineering, Jay Bharat Maruti, Omax Autos, Sharda Motor Industries,

Wheels India, Automotive Stampings and Assemblies, Ganage Pressings, Satyam

Auto Components, Steel Strips Wheels, Autoline Industries

Panse Auto Components, MUSCO, SKH Metals, Rasandik Industries, NTTF

Plastic component

Lumax Industries, Minda Industries, Motherson Sumi, Sandhar Technologies,

Pricol, Varroc Engineering, Varroc Polymer, Supreme Industries, Tata Auto

Components, A G Industries, Fiem Industries, Lifelong India, India Japan Lighting,

Rinder India

Forging Component

Bharat Forge, Amtek Auto, Mahindra Forging, Hitech Gears, Kalyani Forge, Guru

Nanak Enterprises, MM Forging, Ramakrishna Forging, Shivam Autotech, Sadhu

Forging, Raja Forging, Echjay Industries, JMT Auto, Talbros , Trinity India, Kadvani

Forge

Die Casting Component

Amtek Auto, Aurangabad Electricals, Endurance Technologies, Rico Auto, Sunbeam

Auto, Sundaram Clayton, Sandhar Technologies, Continental Engines, Enkei Cast

Alloy, Atlas Automotive, Jayahind Industries, Oswal Group, ASK Automotive, India

Piston

Auto Component Industry : upcoming projects & expansions

163

Amtek Auto has signed an agreement to buy Germany-based Kuepper Group of companies for about €200

million (US$ 273.97 million) in its second big European acquisition in 2013.

JK Tyre and Industries Ltd plans to add Rs 300 crore (US$ 48.78 million) in revenues in a year through the

launch of 10 new products. The company also plans to invest Rs 1,430 crore (US$ 232.52 million) to ramp up

capacity at the Chennai plant.

Faurecia Interior Systems India plans to double its investments at its Chennai factory. The company is also

looking to double its capacity and create 100 more jobs by mid-2015, said Mr Vidyadhar Limaye, Director,

Faurecia Interior.

Michelin Tyres has inaugurated two new Michelin certified Recamic tyre retreading facilities in Tamil Nadu, to

bring quality retread solutions for the truck and bus customers in the region

Future estimate market - Auto components Segment

164

Estimated projected market size for Auto components segment

The auto components sector is expected to remain flat during this fiscal due to the downfall in automotive

segment

On the exports front, auto component supplies to Europe had already been witnessing sluggish growth

over the last few years, but steady expansion in demand for Light Vehicles and Commercial Vehicles

(CVs) in North America was adequately offsetting the overall exports weakness

Component suppliers to the domestic replacement market have also been experiencing moderation in

growth

1980 20892225

24252667

2987

-6%

6%7%

9%10%

12%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

0

500

1000

1500

2000

2500

3000

3500

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Auto component industry size (INR Billion) % Growth


GENERAL ENGINEERING (EXAMPLE -

PUMPS & COMPRESSOR, VALVES,

MOTORS,ETC)

Major general engineering manufacturers and their locations

166

Name of

companyLocation

Valve

KSB

Flowserve

BDK

Oswal

Industries

Fisher Valves

BHEL

Pump

KBL

KSB

BHEL

Mather & Platt

Jyoti

Kishore

CRI

Name of

companyLocation

Compressor

Atlas Copco

Burckhardt

Compressor

Kirloskar

Pneumatic

Bharat Pump

& Compressor

ELGI

Compressor

Ingersol Rand

Dresser Rand

BHEL

Motor

Hindustan

Motors

Siemens

Laxmi

Hydraulics

Crompton

greaves

Allahabad

Pune

Bangalore

Tiruchirappalli

Hubli

Vadodara

Mumbai

Hyderabad

Coimbatore

Ahmedabad

Solapur

Overview

India has a strong engineering and capital goods base. The engineering sector is the largest

segment of Indian Industry

The General Engineering sector constitute the sector such as Turbines, Boilers, Pumps, Valves, Gear

Box, Compressors and Machine Tools

The engineering sector in India has been growing on the back of growth in the user industries

Capacity creation in end user sectors such as Power, Mining, Automobiles, Auto

components, Steel, Cement, Oil & Gas, Infrastructure etc, is driving growth of the engineering

industry

As the sector demands a high level of capability and investment, it is mainly dominated by large

organised players

167

Major players in general engineering segment

168

Products Total Companies Market Players

It is estimated that the valve industry in India for the year 2011-12 is worth Rs 5000

Crore. The growth rate of the industry is approximately 12%

The market for valves is expected to post a healthy growth since a huge investment in

the Oil and Gas, Petrochemical and Steel industries is earmarked by the public and

privates sector

Major Players: AUDCO, BHEL, KSB, BDK, Tyco Valve, Virgo Engineers, Hawa Valve,

Flowserve, Fouress, Leader Valve, Fisher Sanmar, C & R Pumps & Valves, Oswal

Industries

Valves250-280

Numbers

Indian pump industry is producing 5 million pumps annually and it is estimated to be

Rs.7000 Crores growing at an annual rate of 8% significantly higher than the global rate

of 4%

There are more than 800 manufacturers with worker strength of over 40,000.The industry

meets 95% of the domestic demand

Major Players: KBL, KSB, BHEL, WPIL, Mather & Platt, Sulzer, Flowserve, Flowmore,

Jyoti, Kishor Pump, Weir , CRI Pumps, Sam Engineering, Best & Crompton, Indure &

Warman,

Pumps750-800

Numbers

Complex design and relatively higher capital required for compressor manufacturing has

resulted in the industry being dominated by multinational companies. Apart from

BHEL, ELGI, KPCL and few others, there are no other major indigenous manufacturers

of compressors in India. Compressors market in India to grow at a CAGR of 15.60

percent over the period 2012-16

Major Players: Atlas Copco, Burckhardt Compressions, CP Tools, Kirloskar

Pneumatic, Bharat Pumps & Compressors, ELGI Compressors, BHEL, Ingersoll-

Rand, Dresser-Rand, TECUMSEH India

Compressors40-45

Numbers

Future estimate market - general engineering

169

Products considered include engines, pumps, motors, compressors, valves, actuators, gears etc.

Production of engineering goods is estimated to grow at a rate of 17 - 18%

18.5 - 19% of the domestic production is being exported

Imports of engineering goods meet around 25 - 26% of domestic demand

Estimated projected market size for General Engineering segment

1370

14391539

1678 1829

20307%

5%

7%

9% 9%

11%

0%

2%

4%

6%

8%

10%

12%

0

500

1000

1500

2000

2500

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

General Engineering industry size (INR Billion) % Growth


HEAVY ENGINEERING

Name of company Location

BHEL

TRIVENI

ELECON

L&T

ThyssenKrupp

Godrej and Boyce

KPCL

Major manufacturer of heavy engineering and their locations

171

Pune

Bhopal

Mumbai

Bangalore

Haridwar

Trichy

Hazira

Vidyanagar

Overview

172

The Indian boiler industry has the capability to manufacture boilers with super critical parameters up to

1000 MW unit size

The industry’s market size was USD5.1 billion in FY12 and is expected to reach Rs 632.5 billion in

FY22

Boilers

The industry manufactures various turbines in the range of 800–7000 MW per annum, and generators

ranging from 0.5 KVA to (ones even higher than) 250,00 KVA

Total production of turbines and generators stood at Rs 122 billion in FY12 and is estimated to reach

Rs 368 billion by FY22

Turbines and

generator sets

A whole range of power and distribution transformers, including special type of transformers required

for furnaces, electric tracts and rectifiers, are manufactured in the country

The transformers market in India was valued at Rs 147 billion in FY11 and is expected to reach Rs 610

billion in FY22

Transformers

About Rs 32.6 million switchgears and control gears were produced during FY12

The switchgear market size touched Rs 110 billion in FY12 and is projected to reach Rs 451 billion in

FY22

Switchgear

and control

gear

Classification of heavy engineering industry

173

Type Make

Turbines and

Generator Sets

The Indian industry has established a manufacturing capacity of various kinds of turbines of more

than 7,000 MW per annum. The PSE Bharat Heavy Electricals Ltd (BHEL) has the largest installed

capacity. There are units in the private sector also which manufacture steam and hydro turbines for

power generation and industrial use.

Boilers

The Indian boilers industry has the capability to manufacture boilers with super critical parameters

upto 1,000 MW unit size. BHEL is the largest manufacturer of boilers in the country, with over 50%

market share. It has the capability to manufacture boilers for super thermal power plants, apart from

utility boilers and industrial boilers.

Transformers

The domestic transformer industry has the capability to manufacture the whole range of power and

distribution transformers. Special types of transformers required for furnaces, rectifiers, electric

tract, etc, and series and shunt reactors as well as HVDC transmission upto 500 KV are also being

manufactured in India.

Switchgear and

Control Gear

The switchgear and control gear industry in India is a fully developed one, producing and supplying

a wide variety of switchgear and control gear items required by the industrial and power sectors.

The entire range of circuit breakers from bulk oil, minimum oil, air blast, vacuum to SF6 are

manufactured to standard specification.

Electrical

Furnaces

Electrical furnaces are used in metallurgical and engineering industries such as forging and foundry,

machine tools, automobiles, etc.

Shunting

Locomotives

Shunting locomotives for internal transport facilities are essentially used in railways, steel plants,

thermal power plants, etc.

Upcoming investment in heavy engineering industry

174

Tata Power has signed an exclusive partnership agreement with SN Power, Norway, to set up joint ventures for

developing hydropower projects in India and Nepal. Tata Power and SN Power are developing Dugar hydro

project and are pursuing project opportunities in the vast hydro potential available in the Himalayan region. The

partners aim to have 2000 MW under construction or in operation by 2015, and a total of 4000 MW by 2020

Welspun Energy Ltd (WEL) has commissioned its first solar power project in Karnataka of 8 megawatt (MW)

capacity.

Suzlon Group subsidiary REpower Systems SE has concluded two contracts with France-based GDF- SUEZ

Futures Energies for supply of 20 wind turbines MM92 and MM82 types with a nominal output of 2.05 MW

totaling 40 MW.

France-based energy company GDF Suez SA has consolidated its India presence with the acquisition of a 74

per cent stake in Meenakshi Energy and Infrastructure Holdings Pvt Ltd. The company is executing a 1,000

MW thermal power plant at Krishnapatnam in Nellore district of Andhra Pradesh.

Dubai-based Coal & Oil (C&O) Group, plans to build a 1,200 MW thermal plant in Tuticorin district of Tamil

Nadu for Rs 6,800 crore (US$ 1.11 billion ). The company also plans to invest another Rs 10,000 crore (US$

1.63 billion) to increase the capacity by 1,600 MW to 2,800 MW.

BHEL has renovated and modernized a 200 MW thermal power unit at Obra in Uttar Pradesh. This is a Russian

machine and being used by Uttar Pradesh Rajya Vidyut Utpaadan Nigam Ltd.

A roof top, solar photovoltaic power plant has been commissioned at the Sri Vishnu Educational Society,

Bhimavaram Campus in West Godavari district. The plant has an installed capacity to generate around 300,000

units per year

Future estimate market - heavy engineering

175

There are approximately 700 manufacturers in India of which 90% are small and medium manufacturers

BHEL is the major manufacturer of heavy equipment in India

Estimated projected market size for Heavy Engineering segment

1400 14281514

16501798

1996

6%

2%

6%

9%9%

11%

0%

2%

4%

6%

8%

10%

12%

0

500

1000

1500

2000

2500

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Heavy engineering industry size (INR Billion) % Growth


AEROSPACE & DEFENCE INDUSTRY

Major aerospace manufacturer and their location

177

Manufacturing Division Location

TAAL

Aircraft Division

HAL

Accessories Division

Aerospace Division

Aircraft Division

Aircraft Division

Avionics Division

Avionics Division

Engine Division

Engine Division

Foundry and Forge Division

Helicopter Division

Industrial and Marine Gas Turbine

Division

Overhaul Division

Transport Aircraft Division

Max Aerospace and Aviation Limited

Bangalore

Hyderabad

Koraput

KorwaLucknow

Kanpur

NasikMumbai

Overview of Indian aviation industry

178

Aerospace manufacturing is a high technology industry that produces "aircraft, space vehicles, aircraft engines,

propulsion units, and related parts". Its value chain is characterized by a long project life cycle spanning R&D,

engineering design, manufacturing, assembly, maintenance, repair and overhaul. Intensive technology and safety

requirements mandate significant investments in R&D and quality control. India is one of the fastest-growing aerospace

markets. Bangalore is a major centre of the aerospace industry with Hindustan Aeronautics Limited, the National

Aerospace Laboratories and the Indian Space Research Organization. The three segments of the Industry are:

Defence, Civil and Space.

Defence:

India has embarked on major defence acquisition and development programmes comprising Medium Multi Role

Combat Aircraft (MMRCA), Fifth Generation Fighter Aircraft (FGFA), Multirole Transport Aircraft (MTA), Medium Lift

Helicopters (MLH) and Light Utility Helicopters (LUH). The industry will witness more than double the number of aircraft

and helicopters to be produced during the next decade.

Civil Aviation:

Globally, the aviation industry has till recently been driven by technology developed for military purposes. But of late,

civil aviation requirements are driving dedicated technology development. Indian civil aviation industry’s rapid growth is

driving modernization of airports, communications, radars and facilities for Maintenance Repair and Overhaul (MRO) of

aircraft and sub systems. The air traffic in terms of passenger and cargo movement has increased by a CAGR of

19.14% and 9.91% during the period from 2003-04 to 2007-08. The fleet size has grown by 23.77%. The civil aviation

market is expected to register more than 16 per cent CAGR during 2010-2013. The Indian commercial aerospace

market is estimated to absorb about 1,100 commercial jets worth Rs.585,000 crore over the next 20 years

Source - Centre for Asia Pacific Aviation and Indian Ministry of Civil aviation

Upcoming Investment :

Mahindra Aerospace plans to make an 8-seater aircraft at its manufacturing base in Bangalore.

The 8-seater GA8 aircraft will have a range of over 1,100 km and will facilitate connectivity between small towns and

cities, and is particularly of help to domestic tourists.

Major public and private players in defense segment

179

Name of Company Location

Hindusthan Aeronautics Ltd

(HAL)

Bharat Electronics Ltd

Bgharat Earth Movers Ltd (BEML)

Mazgoan Doc Ltd (MDL)

Garden Reach Shipbuilders &

Engineering Ltd (GRSE)

Goa Shipyard Ltd

Bharti Dynamics Ltd (BDL)

Mishra Dhatu Nigam Ltd

(MIDHANI)

Tata Advance System Ltd

Larsen and Turbo

Kirloskar Brothers

Mahindra Defense System

Ashok Leyland

Kolkata

NasikMumbai

Goa

Bangalore

HyderabadPune

Faridabad

Chennai

Overview of Indian defense

180

ServicesAllocation

(In Rs Billion)% share

Indian Army 997.08 49%

Indian Air Force 575.03 28%

Indian Navy 363.44 18%

Ordnance Factories 5.08 -

DRDO 106.10 5%

Total 2,046.73 100%

-- Focus on Modernizing Indian Defence Forces

-- Increase Public Private partnership for rapid growth

-- Make Indian Defence industry self reliant

-- Target to produce 70% of defence requirements

indigenously

-- Relaxation in Custom Duties

-- Promoting FDI’s and Streamline Procurement procedures

-- More formalized and strategic Offset Policy

Government Initiatives

The Organization Structure

Indian Defense budget increased exponentially in last few years with a view to modernize Indian Defence Forces

FY 2011-12 Defence Budget increased by about 35 %

With the opening of the Indian defense segment for Private partnership a large opportunity has arisen to be explored

Ministry of Defence

Department of Defence Defence ServicesDepartment of Defence

Production & SuppliesDepartment of Defence

R & D

Inter service

organizations

Indian Army

Indian Air-Force

Border Security Forces

Indian Navy

Indian Coast Guard

Secretary DRDO

Other Programmes

Source : DRDO

Continue...

181

The Defense Research and Development Organisation (DRDO) were establish in 1958 with only 10 laboratories, DRDO

has grown multi-dimensionally and evolved to be core research organisation with vast network of 52 laboratories and

establishment spread across the country.

Defense Ordinance Factories

Indian Ordinance Factories comes under the department of defense production of ministry of defense. It is conglomerate

of 39 factories, 9 training institutes, 3 regional marketing center, 4 regional controller of safety. Ordinance factor board

(OFD) provides abroad and versatile production base with multi-technology capabilities, state of art manufacturing

facilities.

Private sector in Indian Defense Industry

Private sector has been mainly involved in supply of raw materials, semi-finished products, parts and component to

defense PSUs and ordinance factories to a great extent and also base workshop of army and base repair depots of air

force and the Dockyard of navy. Defense PSUs and Ordinance factories are outsourcing their requirement from private

sector mainly (mainly SMEs) in the range of 20-25%. Out of this outsourcing 25% requirement met through the small

scale industries

DIE & MOULD

Introduction

183

The Indian tool room industry today is principally composed of captive units and commercial units.

The rapid growth of industries like automobiles and auto components, domestic appliances, consumer

electronics and consumer durables in the wake of rising economic growth and the consumer tendency

towards spending, would ensure expanding need for dies, tools and gauges.

The growth in engineering industry has led to the need for a variety of tooling and related products.

Commercial Tool Rooms (CTRs) are more than 35 years old and supply tooling on a commercial basis

to a variety of industries and operate as independent companies.

There are around 115 CTRs in the country. These exclude over 500+ small units.

The current estimated value of tool making (press tools, plastic moulds, die casting tools, jigs and

fixtures and gauges) in India is in the region of US $ 50 million with scope to grow at double digits

growth rate every year.

Most Indian tool rooms are capable of taking on global business. They have invested and maintained

their infrastructure equivalent to the best in the world.

The same class of quality machines, raw materials and manufacturing processes are imported from

world leaders. These combined with the intellect and class of indigenous manufacturing practices

makes Indian tooling industry at par with the best in the world.

The dies & moulds industry in India has always responded positively to the challenges thrown by its

parent industries through constantly innovating and upgrading the processes and manufacturing

techniques.

The technological developments seen in recent products are the outcome of the innovations done by the

dies & moulds industry in the background.

Continue…

184

All possible engineering innovations find their application in dies & moulds industries, which is

unparalleled compared to any other developmental industries. The application of technologies such as

simple slider mechanisms to Archimedean screws for converting movements in different directions and

forms are very common in dies & moulds.

Although the industry is rapidly upgrading itself in terms of quality it is struggling to acquire a reputation

in the local market for honoring delivery commitments.

Overall, the industry lags behind competitive countries like China, Singapore, Thailand, Malaysia and

Taiwan. It is yet to receive the distinction of being the most preferred destination for mould shopping

industries.

Big players in the Indian tooling industries are mainly separate business units diversified from the

captive businesses of large groups having a huge infrastructure but not competitive in terms of delivery

and cost.

The Indian dies & moulds industry is largely unorganized and has local and smaller players, however

major OEMs like TATA Motors, Mahindra & Mahindra have their own dies & moulds manufacturing

plants.

Large forging companies also have their in house dies & moulds manufacturing unit. However, a

certain amount of outsourcing also happens.

Type of tool room

185

Dies & moulds requirements are met through:

-- In house (captive) tool rooms

-- Commercial tool rooms based in India

-- Imports

In house Tool Rooms

-- Tooling requirement is met in- house by the large, medium and small companies

-- Large users have extremely sophisticated state-of-the-art equipment and capable of

producing all their requirements

-- Tool rooms attached to smaller companies are more for maintenance work

Commercial Tool Rooms (CTR)

-- CTRs supply tooling on a commercial basis to a variety of industries and operate as

independent companies

-- CTRs can be classified as large, medium and small on the basis of turnover, type of

equipment installed and product specialization

-- Most CTRs, besides manufacturing tooling of various types also undertake precision

machining and component manufacture

-- A few tool rooms specialize in design of tooling for end users and provide training courses

related to tool design and tool making

-- There are around 115 CTRs in the country. In addition, there are over 500 small tool

rooms - essentially machine shops as well as around 15 government tool rooms

Manufacturing cluster of Die & Mould in India

186

Mumbai and Pune

Ahmadabad and

Rajkot

Bangalore, Chennai

and Hyderabad

Major manufacturers of dies and moulds

187

Company name Location

Godrej & Boyce Mumbai

JBM Auto Components Limited Faridabad

NTTF Bangalore

Progressive Tools and Components Ghaziabad

Central Tool Room and Training Centre Bhubaneswar

Venus Technologies Limited Pune

OM Pressings Pune

Omkar Dies Pvt Limited Pune

Liba Enterprises Mumbai

Om Enterprises Mumbai

Majority of dies & moulds manufacturers have state of the art tool Rooms. Highly accurate EDMs and CNC machining

centers are used.

Prominent manufacturers lay emphasis on close tolerances ranging from 0.0001 to 0.010 mm to provide cost effective

solutions.

Many manufacturing units are equipped with tryout and testing facilities and manufacturers like Godrej & Boyce have

invested extensively in them.

These include die spotting tool tryout presses for plastic moulds and die casting dies with a feature to produce para

form samples to check geometry and dimensions.

A large number of overhead cranes with varying capacities are installed for handling large and heavy tools.

Future estimate market - Dies & Moulds

188

With OEMs desiring to develop domestic tooling manufacturing, it is expected that there will be a rapid

manufacturing growth of tooling.

There has been an increase in the outsourcing activity and collaborative approach from OEMs

During the economic downturn, the die & mould sector was busy with OEMs focusing on introduction of

new models. Today, with the boom of the auto sector, the OEMs are more focused on meeting the market

demands focusing on manufacturing in their plants

Estimated projected market size for Dies & Moulds segment

140 147 162

181203

228

-2%

5%

10%

12% 12%

12%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

0

50

100

150

200

250

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Die & Mould industry size (INR Billion) % Growth

APPENDIX I

Market Forecasting : Methodology

Multiple linear regression is a quantitative method of forecasting

involving the use of multiple independent variables to predict or forecast

the dependent variable

Multiple linear regression should be considered in any situation where

several factors acting simultaneously are likely to have an effect on the

aspect under consideration.

Selecting the proper factors to use as independent variables is an

essential part of regression analysis.


190

Dependent

variables

Measures of effectiveness

R, the correlation coefficient

This tells us the degree to which our two independent variables are related to the

dependent variable. The closer the R value is to 1, the greater the correlation

between the variables.

In our analysis the all the above independent variables have a R value of 0.9 which

indicates that there exists a strong co relation between dependent and independent

YearTurning centers market demand

(INR million)

Automobile production (in Million Units)

Auto component industry size (INR

Billion)

Heavy engineering industry size (INR

Billion)

General Engineering industry size (INR

Billion)IIP

Dies & Moulds (INR Billion)

2004-05 477 8.5 522 510 506 117.1 62

2005-06 659 9.7 720 589 620 138.3 70

2006-07 850 11.1 900 681 798 209.5 80

2007-08 988 10.9 1080 823 897 243.4 92

2008-09 960 11.2 1104 890 950 251.9 104

2009-10 749 14.1 1320 1042 1010 293.1 117

2010-11 1469 17.6 1560 1214 1164 275.7 132

2011-12 2115 20 2100 1320 1275 269.9 143

2012-13 1814 21.9 1980 1400 1370 269.9 140

Independent variables


191

Measures of effectiveness

R2, the coefficient of multiple determination

This explains the strength of the relationship between the dependent and

independent variables . R2 represents the portion of the variation in machine tool

demand (dependent) that is explained by the independent variables we have

selected.

In our analysis the R2 = 0.97.

This means that the model explains 97 percent of the variance in the dependent

variable. An R2 close to 1.0 indicates that we have accounted for almost all of the

variability with the variables included in the model.


192

Year IIP Automobile

production (in Million Units)

Auto component industry size (INR

Billion)

Dies & Moulds (INR Billion)

Heavy engineering industry size (INR

Billion)

General Engineering industry size (INR

Billion)

FY 2013 269.0 21.92 1980 147 1400 1370

FY 2014 271.0 21.92 2089 162 1428 1439

FY 2015 278.4 23.02 2225 181 1514 1539

FY 2016 295.1 24.63 2425 203 1650 1678

FY 2017 318.7 26.35 2667 228 1798 1829

FY 2018 344.2 28.46 2987 147 1996 2030

Important factors that could cause actual results to differ from our expectations include, among others:

-- Changes in political and social conditions in India;

-- Extraordinary changes in monetary & fiscal policies of the Government of India, inflations, foreign exchange

rates, unanticipated turbulence in interest rates;

-- The performance of the financial markets in India and globally;

-- Occurrence of natural disasters or calamities affecting the economy

Projected values of independent variables considered for predicting the

dependent variable

APPENDIX II

References

194

Central Statistics Office - www.cso.gov.bw

World Bank - www.worldbank.org

Economic Report : Ministry of Finance - mof.gov.in/stats_data/monthly_economic_report/index.asp

Economic Survey 2012 - www.indiabudget.nic.in

Directorate General of Foreign Trade - www.dgft.gov.in

Indian Machine Tool Manufacturers’ Association - www.imtma.in

Indian Cutting Tool Manufacturers’ Association - www.ictma.co.in

Society of Indian Automobile Manufacturers Association - www.siamindia.com

The Automotive Component Manufacturers Association of India - www.acma.in

Department of heavy industry - www.dhi.nic.in

Tools And Gauges Manufacturers Association - www.tagmaindia.org

Association for Manufacturing Technology - www.amtonline.org

VDMA - www.vdma.org

UCIMU - www.ucimu.it

http://www.cso.gov.bw/

http://www.worldbank.org/

http://mof.gov.in/stats_data/monthly_economic_report/index.asp





http://www.indiabudget.nic.in/

http://www.indiabudget.nic.in/

http://www.dgft.gov.in/

http://www.dgft.gov.in/

http://www.imtma.in/

http://www.ictma.co.in/

http://www.siamindia.com/

http://www.acma.in/

http://www.dhi.nic.in/

http://www.tagmaindia.org/

http://www.amtonline.org/

http://www.vdma.org/

http://www.ucimu.it/

Sample Questionnaire - End Users

195

Continue…

196

Continue…

197

Sample Questionnaire - Suppliers

198

Continue…

199

Continue…

200

List of contacts

201

Sr.No. Name of Company Location Name of Contact Person Designation

1 HMT Machine Tools Pune Mr Shrivastav Marketing Manager

2 HMT Machine Tools Bangalore Mr Ramesh DGM Planning

3 PMT Machines Ltd Pune Mr Bakuli Marketing Head

4 PMT Machines Ltd Pune Mr Amol Patil Asst Manager Marketing

5 PMT Machines Ltd Pune Mr Disuja Head Machine Tools

6 PMT Machines Ltd Pune Mr Anil Mahapure Manager Marketing

7 PMT Machines Ltd Pune Mr Nilanjan Chakraworthy Purchase Head

8 ACE Micromatic Pune Mr Sanjay Baleshwar Regional Head

9 ACE Micromatic Pune Mr Sanjay Garad Sales Manager

10 ACE Micromatic Pune Mr Chetan Kuber Sales Manager

11 AMS Bangalore Mr Madhukar Manager Marketing

12 ACE Designer Bangalore Mr Gopal Krishanan Production Head

13 Jyoti CNC Rajkot Mr Arun Marketing Head

14 Jyoti CNC Pune Mr Deepak Saste Asst Manager Marketing

15 Jyoti CNC Rajkot Mr Deven Doshi Manager Marketing

16 Jyoti CNC Pune Mr Vikas Taneja Regional Head

17 Batliboi Pune Mr Devendra Chavan Dy. Manager

18 Batliboi Surat Mr Ankur Shah Manager Sales

List of contacts

202


19 Batliboi Bangalore Mr Pasunan GM-SPM

20 LMW Coimbatore Mr Arun kumar Manager Marketing

21 LMW Coimbatore Mr Bhattacharya Sales Head

22 LMW Coimbatore Mr Stayanarayana HOD-Production

23 LMW Pune Mr SV Joshi Zonal Manager

24 Galaxy Machinery Bangalore Mr Niranjan DGM

25 Galaxy Machinery Pune Mr Satish Kale Manager Marketing

26 Miven Machine Tools Hubli Mr C. B. Ganji Sr. Mgr. Sales & Marketing

27 Askar Micron Mysore Mr Vishukumar Manager Marketing

28 Makino Pune Mr Vishal Jadoo Asst Manager Production machinery

29 Makino Bangalore Mr Tyagraj Sales Manager

30 Makino Pune Mr Vikas Mendarkar Sales Manager

31 Mazak india Pune Mr Sachine Gambhire Manager Marketing

32 Mazak india Pune Mr Yashavant Mane Manager Marketing

33 Lokesh Machines Hyderabad Mr Ashmed Manager Service

34 Lokesh Machines Hyderabad Mr Ramrao Manager Marketing

35 Marshall Machines Gurgaon Mr Bharti Gulia Sales Co-ordinator

36 BFW Pune Mr D K Kulkarni Sales Head

List of contacts

203


37 BFW Bangalore Mr Giridhar Rao Product Manager

38 BFW Bangalore Mr Ramesh Sankpal Product Manager

39 BFW Bangalore Mr Renugopal Product Manager

40 DMG Bangalore Mr Ramshetty Shridhar Sales Manager

41 Premier Ltd Pune Mr S V Khasnis Marketing Head

42 Parishudh Machines Pune Mr Ashish Gholap Sales Manager

43 Praga Tools Hyderabad Mr Venkat Ramareddy Sales Manager

44 SMT Grinders Vadodara Mr Manish Kothari Regional Manager

45 Kennametal India Pune Mr Umashankar Regional Head

46 Kennametal India Bangalore Mr C S Venkatesh DGM, Machine Building & Quality

47 Concord United Bangalore Mr Rajendra Sales Manager

48 Kaushico Machine Tools Faridabad Mr Khadaksingh Marketing Head

49 Mass Cutting System Pune Mr Ansar Shaikh Director

50 Weldor Engineering Rajkot Mr Pratosh Marketing Head

51 TGT Technology Bangalore Mr Santosh Prabhu Marketing Head

THANK YOU

Documents

THE INDIAN METAL CUTTING MACHINE TOOL … production of Standard CNC machine Tools. Rise of Auto Sector, Declining Custom Duty Protection, Lowering of Entry Barriers Fall of HMT from