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

Jul 19, 2020

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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

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