Your SlideShare is downloading. ×
  • Like
A report on india's engineering sector
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.


Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

A report on india's engineering sector



  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On SlideShare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Presentation by P MadhusudhanaPrabhu
    March 2011
    A Report on India's Engineering Sector
  • 2. Introduction
    Classification of Engineering Sectors
    Key user Industries
    Growth Factors
    Opportunities on the defence sector
    Opportunities in engineering services
    Future Outlook
  • 3. Classification of engineering sector
    Heavy Engineering
    Transport Equipments
    Capital Goods
    Other Machineries
    Sub Sectors –
    - Textile, Cement, Sugar,
    Rubber machinery… …Dairy, Mining, Machine tool ,Metallurgical etc.,
    Light Engineering
    Low Tech –eg., castings, forgings, fasteners , etc.,
    Highly sophisticated equipments
    Diagnostic Medical
    Sub Sectors –
    - Medical /Surgical, Process control equipments, steel forgings, Ferrous castings, etc.,
  • 4. Key user industries
    These industries are in turn dependent on the growth factors .
    Illustration of Key user industries
    Indian Engineering Sector Growth
  • 5. Industrial Majors
    Refining, Automotive, Textiles
    Power utilities
    Generation, Transmission, Distribution
    Retail Consumers
    Pumps and motors
    Public Investment
    Key user Industries contd…
  • 6. Growth Factors
    Well developed demand conditions
    India’s labour cost advantage
    Growing capabilities of Indian engineering firms
    Preferred outsourcing destination
    Government initiatives with respect to power, infrastructure etc.,
    Dilicensing , removal of tariff protection , promotion of SEZ’s …
  • 7. Growing trend of engineering exports
    Source : - EEPC India , December 2010 survey
  • 8. Statistical scenario :
    Exports of Engineering Services : -
    FY 09 - $ 4.9 bn
    CAGR 17.6 % over Fy07 and Fy09
    Potential to reach $ 29 bn in 2015
    = 20 % of Global market share
    Opportunity for 2009-2014 ( 5 year period) ~ $ 62 billion
    Sectors :-
    Automotive Sector = 19 %
    Aerospace = 8 %
    Utilities = 3 %
    Telecom = 30 %
    Opportunities in Engineering Services
  • 9. Global scenario
    Global military expenditure – 2008 = $ 1464 billion
    2007 = 4 % increase.
    Indian scenario
    Among top ten nations in military expenditure
    Defence budget growth at CAGR =11.5 % between FY 06 & FY 09 to $ 26.5 bn for FY 09
    MSME sector outlook
    Now ~ 5000 companies
    20-25 % of components , sub-assemblies to state owned companies
    Govt & Pvt sector participation
    Major sector = communications & IT equipment
    Opportunities in Defence Sector
  • 10. Entry of International companies
    100 % FDI route permitted – entry of international players
    Incresing the competiveness of the industry .
    Migration to value added products
    Focus on improvising capabilities
    Quality consicious
    Technology up gradation at par with global market needs
    Focus on R&D and product development efforts .
    Diversification of Risk
    Eg., L & T moved into power equipment manufacturing , BHEL plans to exporting to Syria and Vietnam etc.,
    Key Trends
  • 11. Major sectors :
    Telecom equipment
    IT equipment
    Power utilities etc.,
    ~ THE END ~
    Future Outlook