Indian Machine Tools Industry Upbeat on Demand Growth
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Jan 04,2012
3 Jan, 2012, Bangalore: The fledgling Indian machine tools industry remains upbeat on demand growth as economic slowdown during this fiscal had no bearing on orders from the manufacturing sector, an industry representative said Tuesday.
"We have not seen any impact of the slowdown on our industry as demand for our products remains buoyant and we have firm orders for the next six months from the manufacturing sector, which caters to the large domestic and export markets," Indian Machine Tool Manufacturers' Association (IMTMA) president Vikram Sirur told reporters here.
Even in the face of growing demand, India's manufacturing sector continues to be over dependent on import of machine tools, including CNC (computer numerical control) and non-CNC machines, lathes, forgings and dyes, as the Indian machine tools industry is able to meet around 33 percent of the total consumption due to capacity constraints and lack of investments.
"We have been an import-dependent country for machine tools for historical and other reasons, including late and limited entry of domestic players in the segment. The scenario is changing for better as our market share has increased to 33 percent in 2010-11 from 25 percent in 2009-10 and hope to reach 50 percent in 2016-17 by end of the 12th Five-Year Plan," Sirur said.
According to the association's data, of the Rs.11,818 crore sales revenue generated last fiscal (2010-11) from consumption, imports accounted for Rs.7,722 crore while domestic production contributed Rs.4,096 crore.
In contrast, sales revenue in fiscal 2009-10 was Rs.8,845 crore, with imports accounting for Rs.5,647 crore and domestic production for Rs.3,198 crore.
In terms of orders booked, demand for CNC machines in fiscal 2010-11 was in value of Rs.3,775 crore and for non-CNC machines Rs.1,203 crore as against Rs.3,039 crore and Rs.1,151 crore, respectively, in fiscal 2009-10.
"Recovering from the fallout of the global meltdown in fiscal 2008-09, we have been able to maintain double-digit growth during the last two years with a compounded 30 percent growth rate and hope to grow by 15 percent this fiscal as evident from the orders we have for this and ensuing (2012-13) fiscal," Sirur said at a roadshow on the upcoming six-day expo-cum-conference of the industry (Imtex Forming & Tooltech) here from Jan 19.
Though India ranks seventh in machine tools consumption globally in value terms ($1.74 billion) as against China at $27 billon, Germany $5 billion and Japan $4.5 billion, the country ranks 13th in terms of production in value terms at $500 million and 27th in exports, with China, Germany and Japan dominating the top three positions.
"With demand growth projected to remain at 15 percent CAGR (cumulative average growth rate) over the next five years, we need to increase production capacity at an average CAGR of 25 percent, which entails an upward investment of Rs.10,000 crore in the next five years," IMTMA chairman Shailesh Sheth said.
In the second edition of Imtex/Tooltech, about 500 exhibitors from 24 countries are expected to participate to showcase the latest forming manufacturing technologies and products at the Bangalore International Exhibition Centre (BIEC) on the city's outskirts.
"As the biggest b2b expo in South Asia and South East Asian, Imtex will showcase innovations ranging from the most efficient and advanced machineries, with firms from China, Taiwan and Germany participating in a big way," Sheth pointed out.
Coinciding with the expo, a day-long international seminar will be held January 18 on 'Forming Technology' for user industries to meet the demand for advanced and competitive products in diverse verticals such as automotive, consumer durables, industrial goods, aerospace, general engineering and strategic sectors.
(CBCC)
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