The document presents insights into India's engineering sector, detailing its classification, key user industries, and growth factors. It highlights opportunities in the defence sector and engineering services, forecasting significant growth in exports and market share by 2015. The future outlook suggests a shift towards value-added products and increased international competition, emphasizing the need for quality improvement and technology upgrades.

1. Presentation by P MadhusudhanaPrabhuMarch 2011 A Report on India's Engineering Sector

2. Introduction Classification of Engineering SectorsKey user IndustriesGrowth FactorsTrends Opportunities on the defence sectorOpportunities in engineering servicesFuture Outlook Preview

3. Classification of engineering sectorHeavy EngineeringTransport EquipmentsCapital GoodsOther MachineriesSub Sectors – - Textile, Cement, Sugar, Rubber machinery… …Dairy, Mining, Machine tool ,Metallurgical etc., Light EngineeringLow Tech –eg., castings, forgings, fasteners , etc.,Highly sophisticated equipmentsDiagnostic 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 Government Public Investment Key user Industries contd…

6. Growth FactorsWell developed demand conditions India’s labour cost advantage Growing capabilities of Indian engineering firmsPreferred outsourcing destination Government initiatives with respect to power, infrastructure etc., Dilicensing , removal of tariff protection , promotion of SEZ’s …

7. Growing trend of engineering exportsSource : - EEPC India , December 2010 survey

8. Statistical scenario :Exports of Engineering Services : - FY 09 - $ 4.9 bnCAGR 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 billionSectors :-Automotive Sector = 19 %Aerospace = 8 %Utilities = 3 %Telecom = 30 %Opportunities in Engineering Services

9. Global scenarioGlobal military expenditure – 2008 = $ 1464 billion 2007 = 4 % increase.Indian scenarioAmong 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 companiesGovt & Pvt sector participation Major sector = communications & IT equipmentOpportunities 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 consiciousTechnology 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 : Defence AerospaceTelecom equipmentIT equipmentPower utilities etc., ~ THE END ~ Future Outlook