Manufacturer Association, NASSCOM, Aranca · PDF file 2016-02-22 · Manufacturer Association, NASSCOM, Aranca Research Notes: CG - Capital Goods, ER&D - Engineering Research.....

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Source: Dept of Heavy Industries, India Electrical and Electronics

Manufacturer Association, NASSCOM, Aranca Research

Notes: CG - Capital Goods, ER&D - Engineering Research & Design

Increasing industrialisation and economic

development to drive capital goods &

engineering market

Expansion in the electrical equipment

industry

Engineering research & design segment

revenues to increase fourfold by 2020

Capital goods & engineering turnover is

expected to reach USD125.4 billion by

2017 from USD57.6 billion in 2012

Electrical equipment market size expected

to reach to USD105 billion by 2022 from

USD24.2 billion in 2011

ER&D revenues projected to reach to

USD45 billion in 2020 from USD11.2

billion in 2012

57.6

125.4

2012 2017 CG & Engineering turnover

CAGR: 16.8%

24.2

105

2011 2022

Electrical equipment market size

CAGR: 14.2%

11.2

45

2012 2020 ER&D revenue

CAGR: 19.0%

Source: Booz & Company, Volvo India Ltd, Estimates,

Ministry of Heavy Industries and Public Enterprise, Aranca Research

Note: DHI - Dept. Of Heavy Industries, CPSE - Central Public Sector Enterprise

Indian construction equipment market to

grow sevenfold from 2012 to 2020

Indian telecom equipment market to more

than double by 2020

Increased production of Central Public

Sector Enterprise (CPSE)

Construction equipment market projected

to reach USD22.7 billion by 2020 from

USD3 billion in 2012

Telecom equipment market to reach

USD37 billion by 2020 from USD16 billion

in 2011

Production of CPSE under DHI to

aggregate USD10.7 billion by 2014 from

USD9.2 billion in 2011

3

22.7

2012 2020 Construction equipment market revenue

CAGR: 28.8%

16

37

2011 2020

Telecom equipment market size

CAGR: 9.7%

9.2 10.7

2011 2014 Production of CPSE's

CAGR: 5.4%

• The engineering sector is delicensed; 100 per cent FDI is allowed in the sector

• Due to policy support, there was cumulative FDI of USD14.0 billion into the sector over April 2000 – February 2012, making up 8.6 per cent of total FDI into the country in that period

Growing demand

Source: Government of India, Ministry of Heavy Industries, Department of Industrial Policy & Promotion,

India Electrical and Electronics Manufacturer Association, Aranca Research

Notes: FDI - Foreign Direct Investment, FY - Indian Financial Year (April – March), USD - US dollar

Growing demand

• Capacity creation in sectors such as infrastructure, power, mining, oil & gas, refinery, steel, automotives, and consumer durables driving demand in the engineering sector

• Rising demand for electrical and construction equipment

Attractive opportunities

• Nuclear capacity expansion to provide significant business opportunities to the electrical machinery industry

• Rapid increase in infrastructure investment and industrial production to fuel further growth

Policy support

• De-licensed engineering sector; 100 per cent FDI permitted

• Cumulative FDI totalled USD19.9 billion over April 2000–April 2013 due to policy support

Higher investments

• Comparative advantage vis-à-vis peers in terms of manufacturing costs, market knowledge, technology and creativity

• Highly organised sector and dominated by large players employing over four million skilled and semi-skilled labour

Engineering

exports

from India:

USD56.7

billion

FY14E

Engineering

exports

target from

India:

USD125.0

billion

Advantage

India

FY13

Engineering

Heavy Engineering

Light Engineering

Heavy Electrical

Heavy Engineering and

Machine Tools

Automotive

Low Technology

Products

High Technology

Products

Source: Ministry of Heavy Industries and Public Enterprise Annual Report 2012-13, Aranca Research

Notes: MW - Mega Watt, KVA - KiloVolt - Ampere

Boilers

• The Indian boiler industry has the capability to manufacture boilers with super critical

parameters up to 1000 MW unit size

• The industry’s market size was USD5.1 billion in FY12 and is expected to reach USD11.7

billion in FY22

Turbines and generator

sets

• The industry manufactures various turbines in the range of 800–7000 MW per annum, and

generators ranging from 0.5 KVA to (ones even higher than) 250,00 KVA

• Total production of turbines and generators stood at US2.2 billion in FY12 and is

estimated to reachUSD6.7 billion by FY22

Transformers

• A whole range of power and distribution transformers, including special type of

transformers required for furnaces, electric tracts and rectifiers, are manufactured in the

country

• The transformers market in India was valued at USD2.7 billion in FY11 and is expected to

reach USD11.1 billion in FY22

Switchgear and control

gear

• About 32.6 million switchgears and control gears were produced during FY12

• The switchgear market size touched USD2.0 billion in FY12 and is projected to reach

USD8.2 billion in FY22

Source: Ministry of Heavy Industries and Public Enterprise Annual Report 2012-13, Cabinet Committee on Infrastructure report, Aranca Research

Notes: TPD - Tonnes Per Day

Machine tools

• This segment churns out basic machinery for all major industries and determines

competitiveness in other sectors such as automobiles, heavy electrical and defence

• Nearly 200 machine tool manufacturers are operational in the organised sector along with 400

small-scale units

• Production of machine tools totalled USD900 million, while exports stood at USD288.7 million

in FY12

Textile machinery

• It comprises over 1,446 units involved in churning out machinery and components; another

600 units manufacture complete machinery

• The industry is de-licensed with FDI permitted up to 100 per cent

• The industry has an installed capacity of USD1.7 billion and produced goods worth USD1.1

billion in FY12

• In FY12, total exports from textile industries stood at USD368.8 million

Cement machinery

• Cement plants based on raw mill grinding, pre-processing and cement grinding process

technology (for capacities up to 10000 TPD) are being manufactured in India

• Currently,100 per cent FDI is allowed under the automatic route

• With an installed capacity of around USD125 million, the industry is capable of catering to the

domestic demand

Material handling

equipment

• With around 50 units in the organised sector, the material handling equipment industry is

engaged in the setting up of coal/ore/ash handling plants and manufacturing associated

equipment

• The sector’s total imports stood at USD331 million in FY12, while exports aggregated

USD31.9 million

Source: Ministry of Heavy Industries and Public

Enterprise Annual report 2012-13, Aranca Research

Plastic processing

machinery

• There are 11 major and nearly 200 small & medium manufacturers

• Domestic manufacturers cater to 95 per cent of the processing industry’s needs

• Total production stood at USD0.6 billion in FY12

• Exports increased 17.1 per cent to USD124.1 million in FY12

Dies, moulds & tools

industry

• It includes over 500 commercial tool manufacturers

• Nearly18 governments tool rooms as well as training centres are operating in the country

• Total production of dies, moulds & tools stood at USD2.8 billion

• Exports aggregated USD604.7 million in FY12

Process plant

equipment

• Over 200 manufacturers are engaged in the production of process plant machinery

• Nearly 65 per cent of the total manufacturers are small and medium enterprises

• Production and exports totalled USD4.1 billion and USD788.1 million, respectively, in

FY12

Earth moving and

mining equipment

• Currently, 20 large and global manufacturers, and 200 small & medium manufacturers

operate in the industry

• Production and exports totalled USD3.8 billion and USD274.9 million, respectively, in

FY12

Source: Ministry of Heavy Industries and Public Enterprise Annual Report 2012-13,

Cabinet Committee on Infrastructure report, Aranca Research

Note: * From April 2012 to November 2012, ** CAGR calculated on Indian rupee

Passenger and utility

vehicles

• Currently, there are 16 manufacturers of passenger cars and multi-uti