Market Research Report on
THE INDIAN METAL
FORMING
MACHINERY
INDUSTRYFebruary 2014
Indian Machine Tool Manufacturers' Association
Preface
2
Indian Machine Tool Manufacturers Association (IMTMA) is the apex body of machine tool industry in India . The association aims to enhance the competitiveness of Indian industry through its various initiatives on productivity, quality enhancement and technology exposures to Indian machine tool manufacturers and end-users.
As a part of various initiatives IMTMA has commissioned a market research to study the market and technology adoption levels in forming technology in Indian market.
In this regard, they have engaged BDB India Private Limited to carry out a Market Research Study to evaluate the market and technology adoption levels in metal forming technology in India for the products under the scope of the study.
The Study has transformed to a detailed report on market dynamics and technology trends in short , medium and long term for Indian market.
The market forecasting focused on market size estimation, product type wise demand assessment, end user segment wise share and preference, need gaps and pain areas .
BDB India Private Limited was set up 2 decades ago with the objective of providing world class management inputs to engineering businesses in India. Today, BDB offer business consulting including market research services to most market savvy organizations worldwide.
BDB has offered market research inputs for setting up new businesses and in expanding existing ones. BDB has assisted in identifying new opportunity areas and in evaluating their short, medium and long term commercial potential. BDB has developed business analysis expertise in industrial products, systems & consumables, consumer durables and medical equipment.
Continued
3
BDB also has a division (BDB QSAMM) that assists our customers to analyze and establish customer satisfaction indices.
BDB specializes in the following :
- Analysis for estimating the market size and potential
- Technology and emerging trends
- Competition analysis
- Distribution channel analysis
- Market entry strategies
- Partner identification
The study has been successfully completed and its output is being presented in the form of this report.
The findings of the study are presented in this report, and its contents are strictly confidential and meant for the exclusive use of IMTMA.
The statements and analyses in this report are based on the information and opinion obtained during field investigations and from various published sources.
Contents
4
Page No
Preface
CHAPTER 1 PROJECT BACKGROUND 5
Objectives of the study 6Scope of the study 7
CHAPTER 2 EXECUTIVE SUMMARY 11
CHAPTER 3 CONCLUSIONS 36
CHAPTER 4 PRODUCT WISE ANALYSIS 43
Presses 44
Laser Cutting Machines 56
Plasma Cutting Machines 66
Shearing Machines 75
Press Brakes 83
Hot & Cold Forging Machines 92
Water Jet Cutting Machines 99
CHAPTER 5 TRENDS IN THE END USER SECTORS 101
Automotive 102
Auto components 108 General Engineering 116
Heavy Engineering 121
Forging 127
Aerospace & Defence 131Railways 137
Consumer Durables 142
Construction & Mining 147
APPENDIX
1. PROJECT BACKGROUND
- OBJECTIVES OF THE STUDY
- SCOPE OF THE STUDY
Objective of the study
6
aa Market size estimation for Metal forming machines and category wise forecast
of demand on short, medium and long term basis.
bb To report on sector wise demand for metal forming machines and trends
related to adoption of efficient technologies
cc To project the demand over the next 5 years based on the growth of the end
user sectors
dd To report on competitiveness of Indian Machine Tool Industry and recommend
key areas of improvement, end user perceptions on Indian suppliers and
technology gaps
ee To develop a detailed report to guide Indian machine tool manufacturers about
the road map of the industry and enable members to take informed decisions
Scope of the study
7
aa Product categories under focus
Metal Forming Machines
- Presses (Mechanical/Hydraulic/Servo), CNC Sheet Working including laser,
Water jet, Plasma, Shearing machines, Press Brakes, Cold & Hot Forging,
Hydroforming Machines
bb Geographical regions under focus
India
- Prominent manufacturers, end users and institutions & manufacturing clusters
relevant to the study have been contacted to understand their views and
perception on market
Products Covered under metal forming machines
8
Product Description Product Covered
Metal forming
Laser Cutting Machines
Plasma Cutting Machines
Water Jet Cutting Machines
Presses (Hydraulic and Mechanical)
Hot & Cold Forging
Shearing Machines
Press Brakes
Hydroforming technology has gained no popularity in the Indian market.
Electropnuematics and Hydraulics is the only company having capability to manufacture hydroforming
machines which are consumed by themselves
Study Methodology
9
The study was carried out with a multi pronged approach involving stakeholders like end
users, domestic manufacturers of machine tool, importers, component suppliers and
key industry bodies of the user industries
Analysis regarding the total market potential and the product wise trends were sourced
from the domestic manufacturers, importers and import export data. Where as
discussions with end users were carried out to understand types of machinery
used, source, technology trends prevailing and and the growth potential of the metal
forming machinery based on their growth trends. The end users provided the vital inputs
which led to analyzing their buying behavior
A detailed analysis of the customs data on imports was carried out to understand the
extent of machine tool imports into the country and sources for such procurement;
information pertaining to imports of new and used machines were separately analyzed to
arrive at meaningful inputs for the industry
A representative sample of stakeholders has been included in key demand and
manufacturing clusters covering companies from small, medium and large scale
categories.
Discussions with various stake holders were carried out through an intensive primary
research exercise involving personal meeting between BDB analysts and respondents
Market forecasting : Approach
10
Approach - Overview
Important factors that could cause actual
results to differ from our expectations
include, among others:
-- Changes in political and social conditions in
India;
-- Extraordinary changes in monetary & fiscal
policies of the Government of
India, inflations, foreign exchange
rates, unanticipated turbulence in interest
rates;
-- The performance of the financial markets in
India and globally;
-- Occurrence of natural disasters or calamities
affecting the economy
Assumptions :
Growth in metal forming machinery is proportional to the user industry growth
Absence of any major technological change in machining amongst the user industry
No major change in the value of the metal forming machinery currently used
Methodology :
Last 10 years historical data on metal forming machinery consumption, macro economic indicators and respective user sector growth has been mapped
The forecast for the macro economic indicators and user sector growth has been developed based on the economy and industry reports and discussions with end users
Correlation between macro economic indicators, end user sector growth and metal forming machinery consumption has been used to forecast the projected consumption of metal forming machinery
The results have been corroborated with manufacturers and component suppliers based on their judgment and experience
2. EXECUTIVE SUMMARY
Overview of Indian economy
12
8.6% 9.3%
6.2%5.0% 4.7%
11.3%9.7%
2.7%
1.0% 1.0%
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
India GDP Growth (%) Manufacturing GDP Growth (%)
152.9
165.5
170.3172.2
166.55%
8%
3%
1%
-3%
-4%
-2%
0%
2%
4%
6%
8%
10%
140.0
145.0
150.0
155.0
160.0
165.0
170.0
175.0
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 (Apr - Nov)
Index of Industrial production (IIP) IIP Growth (%)
Source : Central Statistics Office, World Bank
Source : Department of Economic Affairs
The performance of the Indian economy over
the past two years especially the
manufacturing output has been
disappointing.
The recessionary pressure of 2012-13 have
severely impacted the industrial activity within
India.
The Index of industrial production has seen a
negative growth predominantly due to the
slowdown in the manufacturing sectors
A large current account deficit, high domestic
inflation and a fiscal stance that was widening
compounded the problems facing the
economy
Low growth and weak business confidence
feed into each other in a negative feedback