Market trend It's business for the Indian machine tool industry
The Indian machine tool industry is on a growth wave owing to the rise of the automobile industry. IMTMA predicts that for the year 2019-20, production of the machine tool industry will grow by 25 % and consumption by 20 %.
Globally, the Indian machine tool industry holds the 10th spot for production of machine tools and 8th for consumption, reports Gardner’s world machine tool output survey 2018. The sector’s prominent industry body, the Indian Machine Tool Manufacturers' Association (IMTMA) has revealed that the Indian machine tool production (estimated) amounted to Rs 7,300 crores during 2017 – 18 registering growth of 25 % from Rs 5,803 crores during 2016-17.
Consumption of machine tools amounted to Rs 14,700 crores during 2017 – 18 had increased by 27 % from Rs 11,600 crores. It is estimated that machine tool production during 2018 – 19 would have touched Rs 9,000 crores and consumption at Rs 17,000 crores. For the year 2019-20, production of the machine tool industry is estimated to grow by 25 % and consumption by 20 %.
Bifurcation of Indian machine tool industry
It is interesting to note that the Indian machine tool industry has around 1000 units in the production of machine tools, accessories / attachments, subsystems, and parts. Out of these, around 25 in the large scale sector account for about 70 % of the turnover and the rest belong to the MSME sector of the industry. The large players, which are more organised, cater to India’s heavy and medium industries while the small-scale sector caters to the demands of ancillary and other units.
Automobiles: Demand driver
Machine tools have witnessed high demand from diverse sectors including automobiles, defence, medical and aerospace. Automobiles are the main demand driver for the sector and the rising number of global car makers establishing their manufacturing bases in India has led to an increase in demand for machine tools. For instance, the most recent entrant in the country’s car market is Kia Motors. The South Korean automobile manufacturer has invested 2 billion dollars for setting up its manufacturing facility in Andhra Pradesh.
Leading countries that specialise in machine tools such as China, Japan, Germany, USA and Italy are also exporting their tools to the Indian market to benefit from the mammoth business opportunity in store. At the moment, India is one of the hot spots for the global machine tool industry and all the players want their share of the pie!
With so much happening in the Indian industry, the India Machine Tools Show (IMTOS), a trade fair dedicated to showcase the latest innovations in the sector, was recently held at Pragati Maidan, New Delhi. The four-day event brought leaders and industry players under one roof to discuss industry trends and also to generate potential business deals.