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PRESENTED BY:
AMITA B. CHOULIGER
JAIN COLLEGE OF ENGINEERING
(DEPARTMENT OF MBA)
SECTORAL ANALYSIS
MANFACTURING
CONTENTS
 Introduction
 Leading names in manufacturing sector
 Different sectors
 Contribution of manufacturing sector to India's
GPD
 Sector and state wise contribution
 Current scenario
 Government initiative
 Challenges, expectation, potential
 Larsen and toubro
WHAT IS MANUFACTURING SECTOR
 “Manufacturing ”is the term used to refer to the
process of using tools, machines and labour to
produce goods that are either for use or for sale.
 Manufacturing sector is:
 Agglomeration of industries engaged in
chemical, mechanical, or physical
transformation of materials, substances,
components into consumer or industrial goods.
LEADING NAMES IN INDIA'S MANUFACTURING
SECTOR
DIFFERENT SECTORS
CONTRIBUTION OF MANUFACTURING SECTOR TO
INDIA'S GDP
 The manufacturing industry contributes 16
percent to India’s GDP.
sector 2007-08 2008-09 2009-2010 2010-2011 2011-2012
agriculture 5.8 0.1 1.0 7.0 2.8
industry 9.7 4.4 8.4 7.2 3.4
manufacturin
g
10.3 4.3 9.7 7.6 2.5
service 10.3 10.0 10.5 9.3 8.9
Source: central statistics office (cso)
MANUFACTURING
Basic goods
Capital
goods
Intermediate
goods
Consumer
goods
Electricity
Coal
Fertilizers
Cement
Steel casting
Commercial
vehicles
Electric
motors
Wagons
Heavy
locomotives
Giant tyres
Petroleum
Bolts
Paints
Jute
Plywood
Paper
Sugar
Wheat
Soap
Phone
Tea
TOP SECTORS IN INDIAN
MANUFACTURING
 AUTO INDUSTRY
 CHEMICALS
 ELECTRONICS
 ENGINEERING
 FOOD PROCESSING
 GEMS AND JEWELLERS
 LEATHER
 MACHINE TOOLS
 TEXTILES
 WATER
 MINING
41%
25%
17%
14%
2%
1%
contribution %
Engineering
Gems &
Jewellery
Chemicals
Textile &
products
Leather &
products
Handicrafts
Source: central statistics office (cso)
STATE-WISE CONTRIBUTION
CURRENT SCENARIO
 Spectacular growth after slowdown in 90’s.
 At present 9th largest manufacturing nation.
 More diversification & better availability of skilled man power.
 Significant player in aerospace industry undergoing
transformation.
 Generates about 45 million jobs, 80% of which are
unorganized segment.
 Potential to create up to 90 million jobs by 2025.
MANUFACTURING & EMPLOYMENT
RELATION
28%
22%
19% 18% 17%
15%
13% 12% 11%
china germany japan russia brazil thailand usa india uk
Employment contribution
china germany japan russia brazil thailand usa india uk
Source: central statistics office (cso)
GOVERNMENT INITIATIVE
 National manufacturing competitiveness council
(NMCC).
 Set up in September 2004.
 Inter disciplinary & autonomous body at highest
level.
 Sustain growth of manufacturing industries.
 Suggest ways & means for enhancing sub sectors
having potential of global competitiveness.
CHALLANGES
Manufacturing sector requires urgent attention
both at macro and micro levels
Enhancing the skills of the workers
Up gradation of technology
High cost of production, quality
Expensive financing
Lagging in research and development
Low labor productivity
Poor infrastructure
Raw material cost
EXPECTATIONS
 Increase in rate of job creation.
 Focus on level of domestic value addition.
 Enhance the global competitiveness through
appropriate policy support.
 Ensure sustainability of growth.
 Increase in manufacturing sector growth to 2-
4% more than GDP growth for the economy
and increase share to 25% of overall GDP by
2025.
FOCUS ON
 Improving the urban infrastructure.
 Quality improvement In vocational and higher
education.
 Increase investments in research and
development
POTENTIAL
 Only manufacturing sector has the capacity to absorb
large labor pool of the country(CISCO).
 Manufacturing sector has great potential to employ
people and increase the income levels(FICCI).
 India placed 2nd in the Deloitte Manufacturing
Competitive Report.
 India has beaten Brazil in the production of motor
vehicles which is good sign for countries growth in
value added manufacturing.
Type Public
Industry Conglomerate
Founded Bombay Presidency, British India (1938)
Founder(s) Henning Holck Larsen
Søren Kristian Toubro
Headquarters L&T House, Ballard Estate,
Mumbai, Mahārāshtra, India
Area served India, Middle East, East Asia and Southeast Asia
Key people K. Venkataramanan (CEO & MD)
A. M. Naik (Executive Chairman)
Products
Construction
Heavy equipment
Electrical equipment
Power
Shipbuilding
Financial services
IT Services
Revenue US$ 13.6 Billion (2013)
It's all about Imagineering
JOINT VENTURE WITH L & T
 L & T cassidian limited is joint venture
between
L & T and EADS Deutschland.
 Both partners contribute their technology and
expertise in Radar, Avionics, Electronic
warfare
Mobile system segments.
SOURCES
 www.ibef.org
 www.reuters.com
 www.wikipedia.com
 www.google.com
 www.investopedia.com
 www.investorzclub.com
 www.machinemag.com
 www.articles.economictimes.indiatimes.com
Manufactureppt

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Manufactureppt

  • 1. PRESENTED BY: AMITA B. CHOULIGER JAIN COLLEGE OF ENGINEERING (DEPARTMENT OF MBA) SECTORAL ANALYSIS MANFACTURING
  • 2. CONTENTS  Introduction  Leading names in manufacturing sector  Different sectors  Contribution of manufacturing sector to India's GPD  Sector and state wise contribution  Current scenario  Government initiative  Challenges, expectation, potential  Larsen and toubro
  • 3. WHAT IS MANUFACTURING SECTOR  “Manufacturing ”is the term used to refer to the process of using tools, machines and labour to produce goods that are either for use or for sale.  Manufacturing sector is:  Agglomeration of industries engaged in chemical, mechanical, or physical transformation of materials, substances, components into consumer or industrial goods.
  • 4. LEADING NAMES IN INDIA'S MANUFACTURING SECTOR
  • 6. CONTRIBUTION OF MANUFACTURING SECTOR TO INDIA'S GDP  The manufacturing industry contributes 16 percent to India’s GDP. sector 2007-08 2008-09 2009-2010 2010-2011 2011-2012 agriculture 5.8 0.1 1.0 7.0 2.8 industry 9.7 4.4 8.4 7.2 3.4 manufacturin g 10.3 4.3 9.7 7.6 2.5 service 10.3 10.0 10.5 9.3 8.9 Source: central statistics office (cso)
  • 8. TOP SECTORS IN INDIAN MANUFACTURING  AUTO INDUSTRY  CHEMICALS  ELECTRONICS  ENGINEERING  FOOD PROCESSING  GEMS AND JEWELLERS  LEATHER  MACHINE TOOLS  TEXTILES  WATER  MINING 41% 25% 17% 14% 2% 1% contribution % Engineering Gems & Jewellery Chemicals Textile & products Leather & products Handicrafts Source: central statistics office (cso)
  • 10. CURRENT SCENARIO  Spectacular growth after slowdown in 90’s.  At present 9th largest manufacturing nation.  More diversification & better availability of skilled man power.  Significant player in aerospace industry undergoing transformation.  Generates about 45 million jobs, 80% of which are unorganized segment.  Potential to create up to 90 million jobs by 2025.
  • 11. MANUFACTURING & EMPLOYMENT RELATION 28% 22% 19% 18% 17% 15% 13% 12% 11% china germany japan russia brazil thailand usa india uk Employment contribution china germany japan russia brazil thailand usa india uk Source: central statistics office (cso)
  • 12. GOVERNMENT INITIATIVE  National manufacturing competitiveness council (NMCC).  Set up in September 2004.  Inter disciplinary & autonomous body at highest level.  Sustain growth of manufacturing industries.  Suggest ways & means for enhancing sub sectors having potential of global competitiveness.
  • 13. CHALLANGES Manufacturing sector requires urgent attention both at macro and micro levels Enhancing the skills of the workers Up gradation of technology High cost of production, quality Expensive financing Lagging in research and development Low labor productivity Poor infrastructure Raw material cost
  • 14. EXPECTATIONS  Increase in rate of job creation.  Focus on level of domestic value addition.  Enhance the global competitiveness through appropriate policy support.  Ensure sustainability of growth.  Increase in manufacturing sector growth to 2- 4% more than GDP growth for the economy and increase share to 25% of overall GDP by 2025.
  • 15. FOCUS ON  Improving the urban infrastructure.  Quality improvement In vocational and higher education.  Increase investments in research and development
  • 16. POTENTIAL  Only manufacturing sector has the capacity to absorb large labor pool of the country(CISCO).  Manufacturing sector has great potential to employ people and increase the income levels(FICCI).  India placed 2nd in the Deloitte Manufacturing Competitive Report.  India has beaten Brazil in the production of motor vehicles which is good sign for countries growth in value added manufacturing.
  • 17. Type Public Industry Conglomerate Founded Bombay Presidency, British India (1938) Founder(s) Henning Holck Larsen Søren Kristian Toubro Headquarters L&T House, Ballard Estate, Mumbai, Mahārāshtra, India Area served India, Middle East, East Asia and Southeast Asia Key people K. Venkataramanan (CEO & MD) A. M. Naik (Executive Chairman) Products Construction Heavy equipment Electrical equipment Power Shipbuilding Financial services IT Services Revenue US$ 13.6 Billion (2013) It's all about Imagineering
  • 18. JOINT VENTURE WITH L & T  L & T cassidian limited is joint venture between L & T and EADS Deutschland.  Both partners contribute their technology and expertise in Radar, Avionics, Electronic warfare Mobile system segments.
  • 19. SOURCES  www.ibef.org  www.reuters.com  www.wikipedia.com  www.google.com  www.investopedia.com  www.investorzclub.com  www.machinemag.com  www.articles.economictimes.indiatimes.com