Compared to the Global markets, Indian machine tool industry is still very small in size However, the industry has been witnessing high growth in the recent past
India has a very fragmented machine tool sector with more than 450 producers; however, the top 10 players account for more than 70% of the output The industry is concentrated in a few locations but is geographically dispersed Indian Machine tool manufacturers have adopted the cluster approach to develop supporting and ancillary industries for the purpose of building machine tools The major clusters of India are in Bangalore, Coimbatore, Ludhiana/Jullunder and Rajkot
The machine tool industry is classified as metal cutting and metal forming tools based on the nature of operation and conventional or Computerised Numerical Controlled (CNC) based on the nature of control Domestic production has grown at a CAGR of 41% during the period 2002 to 2005 Indian machine tool industry has made a radical shift from conventional tools to Computerised Numerical Control (CNC) machine tools over the past few years Metal cutting tools constitute more than 87% of the production with CNC accounting for 70% of the production
Metal cutting tools and CNC machine tools in particular dominate exports Exports have registered a CAGR of 15% during the period 2002 – 2005 However, a strong surge in domestic demand and lack of sufficient production capacity has constrained exports Indian machine tool manufacturers also lack market reach to ramp up exports given that the manufacturers need to establish a reliable after sales network in the countries where they export to, to ensure customer satisfaction
Rising demand and capacity constraints are the major factors resulting in increased imports of machine tools Further special purpose machines required for high end applications are imported by the end user industries as part of the plant and machinery requirements The surge in imports is highlighted in the graphic which indicates a CAGR of 101% during the period 2002 to 2005
Rising disposable incomes, growing middle class and improving infrastructure are expected to sustain the growth in the end user industries that impact demand for machine tools Automobile and auto components will be the major demand driver for machine tools in the coming years Consumer durables and other infrastructure projects will also positively impact the demand for machine tools in India
Machine tools is one of the most least regulated sectors for foreign investment Import duties are also at minimum levels enabling foreign manufacturers to export their products to India
India’s design skills are being recognised globally. For example, a leading Swiss maker of machine tools for the aerospace industry and BFW (Bharat Fritz Werner) collaborated in the design of a 5-axis turbine blade making machine which was manufactured in BFW's Bangalore factory. India has a USD 4 bn foundry industry growing at about 12% per annum which can support the growth in machine tools industry. The basic raw materials required for the production of machine tools viz. steel, grades of alloy steel etc. are locally available India has the highest number of engineering graduates and also has several educational institutions to support training and development of skilled manpower required for the machine tool and engineering industry
Technology marketing presentation jan08
TE C HNOLOGIC A L PRODUC TMA RKE TING Presented By A.Sampath Kumar – 06MB02 S.Veeravel – 06MB27 S.Gopalakrishnan – 06MB06 R.Sujatha – 06MB26 U.Suja-06MB25 S.Srinivasan – 06MB24 T.Venkatachalam – 06MB29
Where do we encounter in technologies in everyday life?Technologies are everywhere – Yet not always visible
What will be there longest has to be carefully planned! (Years)
The current Indian Machine Tools sector is very Small in comparison to the global market size Global Machine Tools Market Total world market size; USD 65.3 bn World leader Japan has USD 10.5 bn has 16% market share China leads consumption with US $ 9.3 bn in 2004 ( 20% of world wide production). It imported US $ 5.8bn ( 62%) Indian Machine Tools Industry • Domestic Market Size : USD 620 mn ( consumption) • Ranks 19th in overall world machine tools production • Contributes 0.5% to overall world production • Exports : USD 11 mn • Exports mainly to developed countries
Manufacturers are geographically dispersed • Top 10 producers account for 70% of the output in India • Around 70% of the players are in the small & medium scale sector • Hubs of manufacturing centres located near the raw material industry or user industries Machine Tool hubs in India • Mumbai and Pune in Maharashtra; • Batala, Jullunder and Ludhiana in Punjab; • Ahmedabad, Baroda, Rajkot Jamnagar, and Surendranagar in Gujarat; • Coimbatore and Chennai in Tamil Nadu; • Bangalore in Karnataka.
Production has grown at a high rate duringthe period 2002 to 2006 Metal Forming bending machines, presses, cold-heading machines,, Production Rs 528 mn Production Rs 860 mn shears, coil slitters, and CAGR 47% CAGR 30% stamping machines Metal Cutting Turning centres, Machining centres, grinding centres Production Rs 7387 mn Production Rs 2113 mn (70% of total metal cutting CAGR 43% CAGR 37% output) CNC Conventional 87% of production 70% of production
Metal Cutting constitutes bulk of the exports Exports of Machine Tools (By Operation) 600 500 400 472 463 300 320 200 100 74 75 61 0 2002-03 2003-04 2004-05 Metal Forming Metal Cutting Figures in INR mn Machine centres, Lathes , Electro discharge machines and HSC drilling tools together account for ~75% of exports ( in FY 2005 )
Shortage in production capacity has resultedin rising imports Consumption Breakup - Machine Tools India CAGR 100% 10360 43 % 7420 80% 5093 60% 40% 18208 101 % 9655 4507 20% 0% 2002-03 2003-04 2004-05 Figures in INR Mn Imports Domestic Production The surge in domestic demand, capacity constraints and lowering of import duties have led to a doubling of imports The percentage share of imports in total consumption has also risen from 47% in 2002-03 to 64% in 2004-05 * Net duty after MODVAT
Domestic demand fuelled by growing end user industries Domestic market grown at a CAGR of over 11% ( FY 2000 - FY 2005). Automotive Exports have grown even higher at about 25% CAGR Auto Domestic market size at USD 8.7 bn and growing at a rate of 15% perComponents annum. Industry estimated to grow at 25% till 2010. Grown at about 20% in FY 2006. Government’s thrust on infrastructureCapital Goods development, and growth in core sectors like textile and agriculture are expected to sustain high growth in this sector The sector has grown at rate of about 13% in FY 2005. The growing middle Consumer class, rising affordably, changing lifestyles have all contributed and continue Durables to contribute to this sectors growth pace.
Indian machine tool industry is most amenable to investments by foreign players 100% FDI is allowed Machine tools manufacturers are exempt from obtaining an industrial licence to manufacture Manufacturers are free to select the location of the project Only specific items under machine tools are reserved for production by the small scale industry Import duties have been constantly reduced to promote increased import and usage of machine tools
India enjoys several advantages for the growthof machine tool industry Design Skills Lower cost of manufacture Availability of raw materials Availability of skilled manpower Presence of support industries (like foundry) Growth in end user industries
Leading players in India Pioneer in Machine tools business in India Leading manufacturer of conventional and CNC machines Revenues of INR 2902 mn Largest machine tool manufacturer in the Private sector Collaboration with German Machine Tool manufacturing Company Manufacturer of CNC horizontal and vertical machining centers, Special Purpose Machines, ACE Designers Ltd., is a leading manufacturer of CNC turning centers and Auto Lathes Part of the ACE Group of companies that manufactures and exports CNC machine tools, grinding machines, turrets etc., to Europe and USA Group Revenues close to INR 2500 mn Jyoti is a leading CNC machine tool manufacturer from Gujarat Has recently tied up with French CNC manufacturer Hurron Graffenstaden SAS to produce Special Purpose CNC machines to be sold in Europe and other western countries Batliboi Limited is among the leading engineering and machine tool manufacturers in India Machine tool business revenues of INR 400 mn
Leading players in India …….. Lakshmi Machine Works is a leading engineering and machine tool manufacturing Company Produces CNC machine tools Also has supporting foundry division to manufacture castings Machine tool revenues close to Rs.1000 mn Kennametal Kennametal India Limited is the largest cutting tools manufacturer in India India and is a Subsidiary of Kennametal, Germany Sales revenues of INR 3631 mn Other Leading Players are: Heavy Engineering Corporation; Motor Industries Company Limited; Lokesh Machines Limited Premier Limited; TAL Manufacturing Solutions Limited; Godrej & Boyce Manufacturing Company Limited; Mysore Kirloskar Limited; Many of the global players like Makino, Mori Seiki, DMG, Yamazaki, Haas, Trumpf, Daewoo, Agie Charmilles, Schuler , Cummins, Siemens , ABB Ltd etc. are present in India either through their marketing agents, technical centres, service centres or assembly centres.
The first product developed by Ace designers, Bangalore,was the Auto Lathe - a multi slide automatic productionturning machine.Built on the modular concept around the “component to bemachined” and supplied as a complete machining solutionwith custom designed work holding and tooling. This machine became very popular with the autocomponents and the two-wheeler industry.“Today, Ace designers are the largest manufacturer of CNCLathes in India” with a market share of over 40%.”
Evolution Of Turning Machines Turning Centre CNC Lathe NC LatheConventional Lathe
Evolution of Milling Machines Machining Centre CNC Milling Machine Milling M/C with DROConventionalMilling M/C
CONVENTIONAL MACHINES FEATURES• Low Spindle Speeds• Low Feedrates on Axes – Cast Iron Guideways• Not so rigid Bed construction• Less No. of Tools – one or two• Very little or no guarding• Low coolant flow
Limitations of Conventional Machines• Low Machining Speeds• Productivity not consistent• Quality – Operator dependant• Low safety working environment
Advantages of CNC Machine• High Material Removal Rate• Productivity output constant – Target can be easily fixed• Consistent Quality output• Close accuracies can be maintained• Process totally De-skilled• Safe Operation
Features of CNC Machines • High Spindle Speeds • High Rapid Rates of Axes • Movement of Axes thru Ball Screws • Hardened & Ground Steel Strips for Guideways • Anti- Friction lining between mating surfaces • Multiple Tool Turret •Completely enclosed Guarding • CNC Control System with Servo Drives
Major user of CNC MachinesAUTOMOTIVE Entire Manufacturing Industry Engines & Parts Two Wheelers Four Wheelers – Cars Heavy Vehicles TrucksEngineering Bearings Hydraulics Electrical ToolingCapital Equipment Machinery Transformers/Generators Aircrafts
Excerpts from the interview…. Mr. A.V. Sathe, Mr. Shrinivas G. Shirgurkar and Mr. B. Machado Promotors of ACE DESIGNERS, BANGALORE
What are the factors driving the machinetool industry?• The market today is mature and knowledgeable with awide choice.• We have companies from the world over operating inthe Indian markets.• Surely the customer is getting more demanding ontechnology, delivery and pricing.• The expectation on service, support and buyingexperience is also becoming very demanding.
What are the issues that are affectingthe machine tool industry?• Export is one of the important challenges faced by the machine tool sector today.• Industry needs to increase the exports. Strategically we should focus on engineering value addition possibilities.• Also there is the challenge of upgrading the technology levels of the indigenous products
What are the various options ACE haveadopted in order to keep itself in line with latesttechnology developments?• ACE receive technology exposure through visits & participation at International shows, inputs from our overseas associates, close interaction with customer and study of their needs that are presently met by imports.
How do you account R&D & ProductInnovations in the success of ACE products?• We have been focusing most of our innovations and development efforts on simple cost effective products.• Our group has been the pioneer in making CNC technology affordable for the small & medium sector.• We have innovated & developed automation systems and high tech machines that were displayed at the recent IMTEX.• We plough back around 3% of our revenues into product development.
What are the current developments of ACE indomestic & overseas markets?• We have always been pro-active on exports and currently export to Australia, France, Germany, Italy, Thailand, and US where we have established associates, stock machines, spares, have factory trained service people.• ACE Micromatic has just set up its first overseas office in China and we understand the Chinese market.• Presently exports constitute 6% of our total sales, we are targeting to increase it to 15% by 2010.
What are the key trends that are driving Indian machinetool industry & what are prospects for the industry innear future?• Indian manufacturing industry has bright prospects , as it has been happening these last few years there is a lot of global manufacturers coming into India for global consumption and also the growth in Indian consumption.Prospects for the Industry in Future:• There are also lots of Infrastructure investments that are happening which will also fuel consumption & feed investments. So the markets will continue to grow.• Yes there will be coarse corrections along the way to factor in real term situations like exchange, demand fluctuations etc. As with any growing market, the competition will also grow and get fierce.
Cont..• In addition to domestic players many international players will increase their presence become more active and aggressive.• The focus will most certainly shift from products (machines) to packaged solutions including services. So while there will be exciting growth there is an urgent need to keep getting better, understand needs, and fulfill them quickly, affordably.• In future the need for higher technology machines (3 axes, 4 axes) more accurate machines, automated machines will become larger and pronounced.