Professional Documents
Culture Documents
Industry Overview
Industry Overview
Chapter II
Several factors have enabled this transformation of the Indian auto components industry. Governments role has been in
the form of initiatives and incentives, additional subsidies and formation of various clusters as also economic liberalisation.
The gradual increase witnessed in the per capita income in India has led to leading aspirations and greater demand for
automobiles, which in turn has boosted the demand for auto components. In addition, the entry of various foreign players
in the Indian market led to companies adopting innovative marketing strategies to fend competition. The competitive
intensity led to the improvement in end products.
Industry Structure
The Indian auto components industry can be broadly classified into the organised sector and the unorganized sector.
There is a clear demarcation with respect to products in these two sectors, the organized sector caters to high value-added
precision engineering products and accounts for around three fourth of the total production. The unorganized sector caters
to the lower value-added segments. The organized players cater to the original equipment (vehicle) manufacturers, while
the unorganized sector largely caters to the aftermarket. There are around 600 players in the organized sector accounting
for around 70% of the industrys total revenues.
In the organised sector, key auto component manufacturers include Brakes India Ltd., Bosch Chassis Systems India Ltd,
Sona Koyo Steering Systems Ltd, Spicer India Ltd., Automotive Axles Ltd., Sundram Fasteners Ltd., Wheels India Ltd., Jay
Bharat Maruti Ltd., Motherson Sumi Systems Ltd., Subros Ltd., Pricol Ltd., Bosch Ltd., Bharat Forge Ltd., Amtek Auto Ltd.,
Federal-Mogul Goetze (India) Ltd., Ucal Fuel Systems Ltd., Lucas-TVS Ltd. and Denso India Ltd.
Industry Classification
The auto components industry in India can be classified based on different parameters, these include, product range and
size and location.
Product range
The Indian auto components industry offers a comprehensive product range, consisting of approximately 20,000 components
required for vehicle manufacturing. The entire product range is grouped into seven categories. Engine parts and drive
transmission and steering parts are the two main product categories, contributing to 50% of the Indian auto component
industry in FY12.
Chart 2.2: Product range- Share of products in FY12 (%)
Table 2.1: Based on their class and size of their location, the Indian auto component industry can be classified as Tier I, Tier
II and Tier III firms.
Tier I
Comprises large firms
Almost all the companies are capable to
manufacture multiple auto components,
equipped with high-end technology and
large number of OEM.
Most companies have high end research
and development centres to carry out
new innovation.
High IT penetration in these areas which
can reduce their operaional expense as
most of the machines are automatic.
Tier II
Tier III
The auto components industry in India is largely present in the form of clusters, due to the presence of a large number of
small and unorganised units. The clusters have OEMs as hubs or centres of growth while the suppliers have formed their
bases around the OEMs.
Cities
Western Cluster
Southern Cluster
Central Cluster
NCR Cluster
Faridabad & Gurgaon (Haryana); Alwar, Bhiwadi, Khuskhera & Chopanki (Rajasthan)
Eastern Cluster
The auto components industry in India has evolved around three major regions, Western Region (Mumbai Pune Nashik
Aurangabad), Southern Region (Chennai Bangalore Hosur) and Northern Region (Delhi Gurgaon Faridabad). In
the Eastern region, activity in the automotive sector is seen in Jamshedpur and Kolkata, but the development in this region
has been to a lesser extent than in the others.
Table 2.3: Auto component clusters in India- State-wise
State
Number
State
Number
Andhra Pradesh
Karnataka
Delhi
Maharashtra
Gujarat
Madhya Pradesh
Haryana
Punjab
Jharkhand
Tamil Nadu
The auto components industry in India has been witnessing a steady flow of investments excepting FY09, when investments
dropped due to recession, as companies postponed their investment plans. Investments in the sector have since picked and
are estimated to have been around ` 10,000 crore during FY11. Major foreign companies have been investing in the domestic
industry through joint ventures and partnerships or by setting up their own production plants. Domestic component
players are also investing heavily in the industry to reap benefits of long-term growth prospects.
Chart 2.3: Investments in the Auto Components Industry (` crore)
10
Being an ancillary industry, demand for auto components is greatly influenced by the demand for automobile industry.
Auto components cater to both the OEM segment as well as the aftermarket or replacement market and by their very
nature, factors that drive demand from both these segments vary.
Exhibit 2.1: Demand drivers for auto components
Supply Dynamics
Raw materials constitute a major cost component in the auto components industry, accounting for ~60% of total expenses,
followed by labour charges accounting for around 10% of the totIndian auto components manufacturers have been focusing
on R&D, innovation, design, and engineering to meet global quality standards and emerge as full-service providers to
OEMs.
Exports
Low labour costs, availability of skilled labour and high quality consciousness among Indian vendors have spurred the
growth of auto component exports from India.
11
E=Estimates
Source: ACMA Annual report FY12
Exports of auto components from India have doubled during the last 5 years from ` 15,960 crore in FY08 to an estimated
` 33,485 crore in FY12. Exports constitute 17% of the Indian auto components industrys total turnover. Exports declined
during FY10 primarily due to slow recovery in developed countries. However, they once again bounced back in FY11,
registering sharp growth more than 45%. Europe accounted for nearly 32.9% of Indias exports and continues to be one of
the major export destinations, followed by Asia.
Chart 2.5: Auto components Major Destinations FY12 (%)
Source: ACMA
In addition, in recent years the structure of the customer base in the global markets has also undergone a major change. In
the 1990s most of the exports were made to the international aftermarket whereas at present most of the exports are made
to the global OEMs and Tier 1 companies. During FY10, global OEMs/tier-I manufacturers accounted for 80% share in the
Indian auto component industrys exports and global aftermarkets accounted for the rest.
12
Source: ACMA Annual Report FY12
Table 2.4: Some OEMs and Tier I companies procuring from India
OEMs
BMW
Caterpillar
Ford
FIAT
GM
MAN
Mercedes-Benz
Nissan
Peugeot
Renault
Toyota
Volkswagen
Bosch
Continental
Cummins
DANA
Delphi
Denso
Eaton
Getrag
Kolbenschmidt
Magna
Meritor
TRW
Valeo
Number of companies
ISO 9000
552
TS 16949
438
QS 9000
33
ISO 14001
OHSAS 18001
204
95
Number of companies
3
Deming Award
11
TPM Award
15
13
Challenges
The growth prospects for the industry are bright, however to continue to report healthy growth the industry has to overcome
certain challenges facing them. The challenges include:
Technological capability not enough to match global standards
Surging raw material prices putting pressure on profit margin
Slowdown in global economy affecting exports
Players losing bargaining power with larger OEMs
Increasing rivalry among players with numerous small firms targeting the same customer segments
FTAs signed with other developing countries increasing bulk imports of cheaper auto components.
Infrastructure challenges Roads, Ports & power
R&D Competence
Raising capital and scaling capacities
Outlook
The Indian auto components industry is well poised to achieve strong growth in coming years owing to rising domestic
demand in the OEM market and expanding replacement market. The export market for auto components is also likely to
see strong traction once the global market stabilises and the economic uncertainty diminishes.
According to the Auto Components Manufacturers Association (ACMA), the Indian auto components industry is likely
to grow to US$ 110 billion by 2020 with the domestic market share of ~US$ 80 billion. The share of the auto components
industry in the countrys GDP is likely to increase to 3.60% by 2020, up from 2.40% in FY12. Given good long term demand
prospects in the domestic market and with India emerging as a favoured low-cost sourcing destination, auto component
manufacturers are likely to invest in increasing production capacities and technological capabilities. Further, companies
would continue to diversify their product portfolio to de-risk their businesses. However, competition is expected to increase
and prices of raw material are likely to follow an upward trend. This is expected to exert pressure on the industrys profit
margins. In such a scenario, cost control programmes would assume greater significance for the industry players, both big
and small.
14
Textile machinery
Rolling bearing
Cement machinery
Sugar machinery
Rubber machinery
Industrial fasteners
Ferrous castings
Steel forgings
Metallurgical
Mining machinery
Dairy machinery
Machine tool
Bicycle
Source: Ministry of Heavy Industries & Department of Industrial Policy & Promotion
15
FDI
Initiatives undertaken by the government towards FDI has also served as a catalyst to raise the demand for engineering
goods and machinery. The engineering industry attracts around 35% of th total FDI through the automatic route. Removal
of tariff protection on capital goods, delicensing of heavy electrical industry and allowance of 100% FDI, infrastructure
development and reduction of custom duties on various equipments are some of the initiatives by the government, which
have contributed positively to the engineering sector.
Table 2.7: FDI inflow: Apr 2000-Nov 2012
Particulars
Electrical equipment
` bn
US$ mn
14,109.32
3,079.27
10,327.71
2,282.84
Industrial machinery
10,578.37
2,221.25
Non-conventional energy
9,326.45
1,927.78
Machine tools
2,962.18
622.09
2,749.83
574.24
Agricultural machinery
947.54
208.53
Earth-moving machinery
749.59
171.37
1,180.70
258.26
Industrial instruments
307.45
66.53
Scientific instruments
477.79
91.11
305.75
61.83
16
The heavy engineering sector can be classified into two broad segments: Capital goods/machinery (which is further classified
into electrical machinery/equipment and non-electrical machinery/equipment) and equipment. Electrical machinery
includes: power generation, transmission and distribution equipment such as generators and motors, transformers and
switchgears. Non-electrical machinery comprises machines/equipment used in various sectors such as material handling
equipment (earth moving machinery, excavators, and cranes) and boilers.
Table 2.8: Growth in production of key heavy industries (%)
Key heavy industries
Machine tools
18.27
Boilers
26.91
Electric motors
11.73
18.85
-7.33
25.71
Commercial vehicles
25.89
Passenger cars
Relays, fuses and switchgears
1.71
-10.92
25.99
26.88
Cranes
Agricultural machinery
Engines incl. internal combustion and diesel engine
-14.68
7.93
6.93
Construction machine/equipment
-5.45
Industrial chains
30.75
Industrial blowers
-7.32
Generator/alternator
Turbines & accessories
1.82
10.56
*Apr-Nov
Source: Department of Heavy Industries
Fortunes of the Indian heavy electrical industry have been closely linked to development of the power sector in India. The
heavy electrical industry comprises of power generation, transmission and distribution as well as utilisation equipment.
These include turbo generators, boilers, turbines, transformers, switchgears, Transmission Line Towers, Motors (FHP,
LT, HT & DC), AC Generators, Conductors, Capacitors, Cables, Energy Meters, and other allied items. etc. This electrical
equipment (transformers and switchgears) is used by most sectors. Some of the major areas where the equipment is used
include power generation projects, petrochemical complexes, chemical plants, integrated steel plants, and non-ferrous
metal units.
Demand for heavy electrical and power plant equipment (market size) has risen at a CAGR of 15.5% during the six years
ended FY11. During this period, domestic production grew at a CAGR of 14.1%, while imports grew at a CAGR of 22.8%.
Imports cater to the around 37% of the requirement in the supercritical segment for BTG equipment, while in the subcritical
segment it accounts for around 26%.
17
Source: Report of the working group on capital goods and engineering sector for the 12th Five-year Plan
There are about 675 manufacturers of electrical machinery in India including Heavy electrical power generation Equipment
like Boiler, Turbine & Generator sets. Nearly 90% of them are small & medium manufacturers. PSU named BHEL is the
major manufacturer of electrical and power equipment.
Numerous companies have ventured into manufacturing of power equipment owing to the Government of Indias thrust
on power. The power equipment industry has a number of SMEs operating in fragmented segments such as manufacture of
transformers, power cables and conductors. However, the industry continues to be dominated by organised players in the
manufacture of heavy electrical equipment, which requires higher technological capabilities and capital investment.
In power equipment, transformers are one of the most fragmented segments, with numerous SMEs involved in the
manufacturing of transformers. The Indian transformer industry exports to more than 50 countries including the US,
Europe, South Africa, Cyprus, Syria, Iraq, and the Far East countries.
Turbines and Generator Sets: The Indian industry has established a manufacturing capacity of various kinds of
turbines of more than 7,000 MW per annum. The PSE Bharat Heavy Electricals Ltd (BHEL) has the largest installed
capacity. There are units in the private sector also which manufacture steam and hydro turbines for power generation
and industrial use. Domestic manufacturers of AC generators are capable of manufacturing AC generator from 0.5
KVA to 25,000 KVA and above.
Boilers: The Indian boilers industry has the capability to manufacture boilers with super critical parameters upto
1,000 MW unit size. BHEL is the largest manufacturer of boilers in the country, with over 50% market share. It has
the capability to manufacture boilers for super thermal power plants, apart from utility boilers and industrial boilers.
Transformers: The domestic transformer industry has the capability to manufacture the whole range of power and
distribution transformers. Special types of transformers required for furnaces, rectifiers, electric tract, etc, and series
and shunt reactors as well as HVDC transmission upto 500 KV are also being manufactured in India. The Indian
transformer industry exports to various countries including the US, Europe, South Africa, Cyprus, Syria, Iraq and Far
East countries.
Switchgear and Control Gear: The switchgear and control gear industry in India is a fully developed one, producing
and supplying a wide variety of switchgear and control gear items required by the industrial and power sectors. The
entire range of circuit breakers from bulk oil, minimum oil, air blast, vacuum to SF6 are manufactured to standard
specification. The range of products produced cover the entire voltage range for 240V to 1000KV, switchgear and
control gear, manual circuit breakers, air circuit breakers, switches, rewireable fuses and high rupture capacity fuses
with their respective fuse bases, holders and starters.
18
Electrical Furnaces: Electrical furnaces are used in metallurgical and engineering industries such as forging and
foundry, machine tools, automobiles, etc.
Shunting Locomotives: Shunting locomotives for internal transport facilities are essentially used in railways, steel
plants, thermal power plants, etc.
Textile machinery
The Indian textile machinery segment comprises more than 1,446 machinery and components manufacturers and 598 units
producing complete machinery and 848 units make parts and accessories. 80% of them are small & medium manufacturers.
Major textile machineries include weaving machine, spinning machine, winding machine, processing machine, synthetic
fibre machine, textile testing instruments, etc.
The global market crisis that hit the textile industry in 2009 had a serious impact on the Indian textile machinery segment
as well. Demand (market size) for textile machinery grew at a slow pace of 2.9% during the six year period ended FY11
to ` 10,500 crore. Share of domestic production in total market has risen over the last few years, however over 40% of the
demand for textile machinery is catered by imports.
Chart 2.8: Textile Machinery (` cr)
Source: Report of the working group on capital goods and engineering sector for the 12th Five-year Plan
Technology Upgradation Fund Scheme (TUFS), the flagship programme of the Ministry of Textiles, has attracted investments
in the textile sector. It has infused an investment climate in the textiles sector and in its operational life span has propelled
investment of more than ` 20.77 bn (up to June 2010). The textile machinery industry has benefited substantially from the
TUFS scheme for expansion and modernisation of textile mills. The total fund of ` 80 bn, which was allocated under the
TUFS scheme in the Eleventh Five Year Plan (2007-2012), has been utilised completely in just three years.
Under the heavy engineering segment, the Indian material handling equipment industry has a number of units present in
the SSI sector, manufacturing equipments such as stackers, reclaimers, ship loaders/unloaders, wagon tipplers and feeders
catering to core industries such as coal, cement, power, port, mining, fertilizers and steel plants.
Currently 20 large & global manufacturers and nearly 200 small & medium manufacturers of Earthmoving & mining
machinery are present in India. The product range comprises of Backhoe Loaders, Compactors, Mobile Cranes, Pavers,
Batching Plants, Crawler Crane, Transit Mixer, Concrete Pump, Tower Cranes, Hydraulic Excavators, Dumpers, Mining
Shovel, Walking Draglines, Dozers, Wheel Loaders, Graders, Drilling Equipment, etc.
19
Supported by the accelerated economic growth from the year 2003 onwards, construction and mining machinery sector has
grown by leaps and bounds to sustain rapid expansion happening in infrastructure and core sectors projects.
Construction and Mining industries in India have exported a wide range of machinery to countries in Africa, Indonesia,
Malaysia and South America and the value of export is about ` 228 Crore during 2010-11.
Machine tool is another heavy engineering segment dominated by SMEs in terms of number of companies. Out of 800
manufacturers of machine tools and its parts most are SMEs, about 25 units are mid-size manufacturers which have annual
turnover varying between ` 200 - 300 crore each. Coimbatore is one of the major manufacturing hubs of the machine tools
industry. The machine tool industry manufactures the entire range of metal-cutting and metal-forming machine tools; and
variants of robotics, handling systems and TPM-friendly machines. Type of machine tools currently manufactured in India
are General/Special Purpose Machines, Standard CNC machines, Gear cutting, Grinding, Medium sized machines, EDM,
Presses, Press Brakes, Pipe Bending, Rolling, Bending, Measuring, metrology and gauging, etc.
Although machine tool manufacturers produce general purpose machinery of international standards in terms of quality,
precision and reliability; they lag in terms of design and engineering capabilities to manufacture high precision CNC
machines. It is a highly fragmented industry with growth in the industry being demand driven, coming from various
sectors such as automobiles, engineering, defence, textile machinery and aviation.
The import content is 30% in domestic production for standard machine tool and 40% in high technology machine tools.
The market size of the machine tools industry has grown at a CAGR of 16% during the five years ended FY11 to ` 10,236
crore. During this period, domestic production grew at a CAGR of 12%, while imports grew by 20%.
Chart 2.9: Machine tools industry (` cr)
Source: Report of the working group on capital goods and engineering sector for the 12th Five-year Plan
The Indian cement machinery industry manufactures complete cement plants, based on dry processing and pre-calcination
technology, for capacities upto 7500 TPD. The existing installed capacity of the industry is estimated to be ` 6 bn per annum.
According to the Ministry of Heavy Industries, presently there are 18 units in the organised sector for the manufacture of
complete cement plant machinery.
20
The oil field equipment manufacturing industry manufactures drilling rigs for on-shore drilling. Offshore drilling
equipments like jack-up rigs, etc are not manufactured indigenously. The industry however manufactures offshore
platforms and certain other technological structures domestically. Bharat Heavy Electricals, Hindustan Shipyard, Mazagon
Dock and Burn & Co. are some of the leading producers. The recent couple of years have witnessed a surge in exports of oil
field equipments. However, the industry remains a net importer.
The Indian dairy machinery manufacturers produce a range of equipment including stainless steel dairy equipment,
evaporators, milk refrigerators and storage tanks, milk and cream deodorizers, centrifuges, clarifiers, agitators, homogenisers,
spray dryers and heat exchangers (tubular and plate type), etc. As per the Ministry of Heavy Industries, presently there
are 20 units manufacturing dairy machinery and equipment such as evaporators, milk refrigerators, storage tanks, milk
deodorizers, centifugers, clarifiers, agitators, homogenizers, spray dryers and heat exchangers, etc in the organised sector,
both in private as well as public sector.
There are 11 major manufacturers of machinery in the organized Sector and nearly 200 small & medium manufacturers.
Major plastic machineries include Injection Moulding Machine, Blow Moulding Machine and Extrusion Moulding Machine.
Total demand and production of the Plastics Machinery industry is ` 3850 Crore and ` 2403 crore in 2010-11 and it has been
growing @ 30.6% and 28.8% CAGR respectively. Around 37.5% of total demand is met through imports.
Chart 2.10: Plastic processing machinery (` cr)
Source: Report of the working group on capital goods and engineering sector for the 12th Five-year Plan
Metallurgical machinery
Metallurgical machinery includes all types of steel plant equipment such as blast urnace, steel melting furnace and
equipment, rolling mills, continuous casting machines, etc., coke oven equipment, mineral beneficiation plant, crushers,
screens, mixer, magnetic separators and metal converters, metallurgical foundry, etc. Since the nature of technology is
specialized and derived from the steel making technology, very few large manufacturers like HEC, L&T and about 200 mid
size companies and SMEs making such machines and its accessories. Out of 200 units 85% are SMEs.
Demand for metallurgical machinery has increased over the years, however most of the demand is met through imports.
Domestic production caters to just around 15% of the total demand.
21
Source: Report of the working group on capital goods and engineering sector for the 12th Five-year Plan
Engineering goods
Demand (market size) for engineering goods grew at a CAGR of 14.9% during the six years ended FY11. Production grew
by 13.4% while imports rose by around 25.5%. Most of the requirement (~90%) for engineering goods is met through
domestic production. Engineering goods considered for the report are Bearings, Steel pipes and tubes, Seamless pipes and
tubes, Nuts, Bolts, Rivets etc., Castings, Forgings, Metal Containers including cylinders, Steel wires and ropes, Engines,
Pumps, Compressors, valves & actuators, gears, etc.
Chart 2.12: Engineering Goods (` cr)
Source: Report of the working group on capital goods and engineering sector for the 12th Five-year Plan
Indian toolroom industry is very fragmented and consists of more than 500 commercial tool makers engaged in design,
development and manufacturing of tooling in the country. In addition to commercial tool makers, 18 Government toolrooms
cum training centers are also operating in the country. The key commercial toolroom locations are Mumbai, Bangalore,
Chennai, Pune, Hyderabad and NCR.
22
Source: Report of the working group on capital goods and engineering sector for the 12th Five-year Plan
A majority of the SMEs operate in the light engineering industry, comprising low-tech items such as castings, forgings,
fasteners, bearings, steel pipes and tubes. Although SMEs are known to dominate the low-technology segment in engineering,
a few SMEs also manufacture niche high value-added products. For a few SME engineering enterprises, manufacturing is
restricted to assembly of imported components.
Most products in light engineering serve as inputs for capital goods industry. Therefore, the industrys financial and
operational health is linked to demand for capital goods. In fact, in light engineering, a number of products such as all
types of fasteners (except high tensile and special purpose fasteners), conventional hand operated sewing machines, bicycle
parts and other components are reserved for the SSI sector.
Table 2.9: Snapshot of Key Segments in the Light Engineering Industry
% Growth in Production (FY12 over FY11)*
Bearings (Ball/Roller) industry
7.94
C.I. castings
6.29
Steel castings
39.67
-3.48
Fluorescent tubes
Hose pipe
-9.79
-28.71
6.96
5.89
Aluminium tubes/pipes
9.63
Spun pipes
1.77
13.16
Bicycles
4.11
Bicycle parts
8.63
Tube, truck
Medical and surgical equipment (except x-ray)
6.61
-15.03
* Apr-Nov
Source: Department of Industrial Policy & Promotion
23
SMEs have a significant share in the steel forgings industry with a number of units functioning in this tiny segment. These
SMEs have upgraded their facilities in terms of technology and quality and some of them supply to Original Equipment
Manufacturers (OEMs) in the automobile sector.
Traditionally, for SMEs, major impediments to growth have been high cost of credit and non-availability of raw material at
competitive rates. SMEs also lag behind in technological capabilities, with a wide gap between technology in the domestic
turf and at international levels.
Medical and Surgical Instruments: The medical and surgical instruments segment includes a wide array of equipment and
apparatuses. These include medical and surgical instruments, dental equipment, electro-medical apparatus, orthopaedic
appliances, physiotherapy equipment, X-ray machines, among others. These instruments find application in diagnosis,
therapy and patient monitoring and thus play a crucial role in the healthcare delivery system.
Output of the Indian medical and surgical instruments industry was very small until a few years back. In recent years,
liberalisation and growing health awareness has accelerated the growth of the domestic industry and also led to a rise in
imports of medical and surgical instruments into India. Domestic production comprises of wide range of medical equipment
including Electro-Cardiograph (ECG) machines, X-ray machines, electro-surgical instruments, blood chemistry analysers,
among others. Demand for sophisticated instruments such as nuclear magnetic resonance (NMR) scanners, multi channel
monitors, among others are met through imports. Majority of the end-users prefer to deal with foreign companies, as
Indian manufacturers who are concentrated in the small-scale sector are not able to provide after-sales service.
Rising income levels, growing health consciousness, rapid urbanisation and rise of medical tourism are expected to drive the
demand for medical and surgical instruments. Governments commitment to improve healthcare facilities and liberalisation
of trade and investments laws would also expand the market for medical and surgical instruments.
Process Control Instruments: Process control instruments and systems are instruments and systems used for measurement
and control of process variables. Process variables are physical or chemical parameters, the variations of which can affect the
operation of a manufacturing process. These variables include humidity, pressure, temperature, liquid level, flow, vacuum,
vibration, specific gravity, and chemical composition including pH, among others. Use of process control instruments and
systems is highly significant in large and sophisticated process industries such as fertilisers, power plant, steel, cement
plants, petroleum refineries and petrochemical industries, among others.
The industry is a liberalised one and 100% FDI is permitted in this sector. Transfer of technology has been the major
cornerstone for the development of the domestic process control instruments and system industry. There exists a gap between
technology adopted in India and contemporary international technology. Technology presently used in the Indian industry
is microprocessor-based centralised control system. The Indian industry is capable of handling open control systems and
smart control devices; however, latest developments such as total integrated management and control approach, which are
currently being adopted in the developed countries, are yet to be adopted in the country.
Antifriction roller bearing: Roller bearings are components used to reduce or eliminate friction between moving parts
and thus reduce wear & tear of machines. They help improve machine performance and are thus a critical component
of any equipment that rotates. It finds varied application, ranging from simple electric fans to complex space rockets.
Depending on its usage, a bearing may have to withstand prolonged use, high-speed rotation, varied temperatures, or a
corrosive environment. Bearings are available in two distinctive shapes, ball, and roller. There are four different types of
roller bearings cylindrical roller bearings, needle roller bearings, tapered roller bearings and spherical roller bearings.
The Indian bearing industry has recorded healthy growth in the past few years. The Indian manufacturers are able to
meet more than three-fourth of the demand for general purpose bearings. The Indian bearing industrys product range
comprises of more than 500 types of bearings. Indian manufacturers do not produce special purpose bearings as demand
for the same is low and investments required are huge as bearings is a capital intensive industry. Special purpose bearings
are therefore imported.
24
The bearings industry is highly fragmented. The organised sector caters to both the original equipment manufacturers and
replacement market. The unorganised sector, which manufactures low quality small bearings, caters to the replacement
market. The manufacturing activity of a few small-scale units is restricted to assembly of imported components. The
automobile industry is the major user industry for the bearings industry. Given the growing demand for automobiles in the
country, demand for bearings would increase in the coming years.
Industrial Fasteners: Industrial fasteners cover a wide range of products such as nuts, screws, bolts, studs, rivets, nails,
washers, etc. Fasteners can be broadly classified into two groups, high tensile strength fasteners, and mild steel fasteners
depending on their tensile strength. Manufacture of high tensile fasteners requires superior technology and these are hence
mainly manufactured in the organised sector. On the other hand, manufacturing of mild steel fasteners is concentrated
in the unorganised sector. In fact, manufacture of all types of fasteners except high tensile fasteners and special purpose
fasteners are reserved for the SSI sector. Fasteners are used in the assembly of engineering systems.
The automobile industry is the largest consumer of fasteners. The other major user-segments are textile machinery,
railway locomotives, construction, computer hardware and general engineering. There exists huge export potential for
Indian industrial fasteners. However, poor product standardisation, relatively higher raw material costs and low labour
productivity make Indian fasteners less competitive in the global market.
Ferrous Castings: Ferrous castings constitute essential intermediates for automobiles, industrial machines, power plants,
chemicals & fertiliser plants and cement plants, among others. They are therefore vital for the growth and development
of the engineering industry. The domestic industry is well established, giving rise to a huge export potential for Indian
manufacturers. To capitalise on this export demand, leading manufacturers have undertaken modernisation and
upgradation of their manufacturing facilities to improve productivity and product quality and also reduce their production
costs. Given the wide spread usage of castings across industries and the huge export potential, there exists considerable
scope for establishing additional capacity in this area.
Steel Forgings: The forging industry has emerged as one of the major contributors to the manufacturing sector of the
Indian economy. Depending on the scale of operations, the industry can be categorised as large, medium, small and tiny.
SMEs comprise a major portion of this industry.
Increasing globalisation has led to sharp rise in investments in the sector. This has led to the industry becoming capital
intensive from being labour intensive. To expand their markets and have a global reach, the small-scale units are also
increasing their capital investments. The small-scale units have upgraded their facilities in terms of technology and quality
and a number of them are now suppliers to the OEMs in the automobile sector. The automotive industry is the major enduser of the forging industry. The other user industries include industrial machines, railways, oil & gas, power plants and
chemical plants, among others.
The Indian forgings industry has made rapid strides and currently not only meets almost the entire domestic demand, but
has also emerged as a large exporter of forgings. The major export markets are USA, Europe and China. The outlook for the
industry looks promising, backed by the robust demand from the automotive sector, both domestic and global.
Seamless Steel Pipes & Tubes: Seamless steel pipes & tubes find widespread usage in the hydrocarbon industries, processing
& general engineering industries. Boiler pipes, as the name suggests are used in boilers, heat exchangers, super heaters,
among others, while casing & tubing are used for drilling of oil and gas. Seamless pipes find application in industries where
strength, resistance to corrosion and long shelf life are critical. The industry is liberalised and 100% FDI is permitted in the
sector under the automatic route.
The oil sector is the major end-user segment of seamless pipes & tubes. The other user segments include boilers, ball
bearings, automobiles, chemical plants, fertilisers, petrochemical plants, industrial machinery, among others. With the
gradual rise in power and oil sector, the demand for seamless steel pipes & tubes segment is expected to increase going
forward.
25
Electrical Resistance Welded (ERW) Steel Pipes & Tubes: ERW steel pipes & tubes find widespread usage across industries
and fields. In addition to various engineering industries, they are used for water, oil and gas distribution, line pipes, fencing,
scaffolding, etc. They are also used for agricultural purposes, drinking water supply, thermal power, for hand pumps for
deep boring wells and also as protection for cables (telecom), among others. Depending on the requirement of the end user
industry, ERW steel pipes & tubes are available in various wall thicknesses, diameters, and qualities. The different types
include line precision pipes, tubular poles, electric poles, lightweight galvanised pipes for sprinkler irrigation, among
others. The industry has sufficient capacity to manufacture the different types of pipes & tubes. High performance ERW
steel pipes & tubes possess high strength, toughness and are corrosion resistant.
In the manufacturing process of ERW steel pipes & tubes, the edges to be welded are mechanically pressed together
and electric resistance or electric induction is used to generate the heat required for welding. With the adoption of better
welding technology, ERW pipes & tubes are now widely used in the oil & gas sector. A number of ERW steel pipes & tubes
production units are in the SSI sector. Higher demand from the oil & gas industry, infrastructure and automobile industries
has led to a healthy increase in production of ERW steel pipes.
Submerged-Arc Welded (SAW) Pipes: SAW pipes are mainly used for oil & gas transportation and water distribution. SAW
pipes are of two major types, longitudinal and helical welded SAW pipes. The latter are used for low-pressure application,
while longitudinal SAW pipes are preferred for high-pressure application such as gas pipes. Longitudinal SAW pipes are
more than 25 mm in thickness. In terms of production costs, it costs less to manufacture helical SAW pipes as compared
to longitudinal SAW pipes. In the manufacturing process of submerged-arc welded pipes, the heat necessary to melt the
edges of metal to be joined together is generated with the help of a concealed arc with no pressure between the two sides of
the weld. India has a high installed SAW pipes capacity with four major players including Jindal Saw Limited, Well Spun
Gujarat Limited, PSL Limited and Man Industries.
Bicycle Industry: The Indian bicycle industry can be categorised into two segments, those manufacturing bicycle parts,
and those manufacturing complete bicycles. Majority of bicycle parts and components are manufactured in the small-scale
sector, since most of the components other than free wheels and single piece hubs are reserved for the small-scale sector.
Large units are permitted to manufacture bicycle frames, chains, rims, and that too only for captive consumption. Complete
bicycles are manufactured in the organised sector. The Indian bicycle industry conforms to well-accepted quality standards
in the international market, and more importantly, the industry is taking efforts to increase exports.
Outlook
The engineering sector is expected to grow in coming years due to investments in power, metal, oil & gas and petrochemical
industries, infrastructure development and favaourable government policies. Growth in the manufacturing and industrial
sector would also boost growth in the engineering sector.
26
FY09
FY10
Sugar
15.2
(33.9)
Fruit pulp
87.0
Fruit juices
20.9
Cashew kernels
FY11
FY12*
(6.0)
30.2
38.3
(2.0)
5.0
35.1
30.4
41.0
46.6
16.8
26.0
8.4
(4.2)
(0.9)
(7.9)
22.2
30.8
19.4
20.8
10.6
17.9
Mineral water
29.4
6.9
28.3
19.9
15.4
Chocolate
8.9
24.2
11.3
13.7
13.3
Malted foods
8.5
(36.8)
(8.8)
8.4
6.4
Butter
Biscuits
Frozen meat
4.8
3.4
(22.7)
(4.7)
0.1
(0.9)
29.2
10.4
(1.4)
(1.6)
(12.9)
76.8
27.4
(21.8)
(1.7)
Food processing involves any type of value addition to agricultural or horticultural produce and includes processes such
as grading, sorting and packaging which enhance the shelf life of food products. The food processing industry provides
vital linkages and synergies between industry and agriculture. The government has announced various fiscal reliefs and
incentives, to encourage commercialisation and value addition to agricultural produce, for minimising pre/post-harvest
wastage, generating employment and contributing to export growth. Indias food processing sector covers a wide range of
products such as fruit and vegetables; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation,
grain processing and other consumer product groups including confectionery, chocolates and cocoa products, soya-based
products, mineral water, high protein foods etc.
The food processing industry directly employs about 13 mn people and nearly 35 mn people indirectly. The food processing
sector contributes over 14% of manufacturing GDP of which unorganised sector accounts for more than 70% of production
in terms of volume and 50% in value terms. India annually yields 110 mn tonnes of milk, 150 mn tonnes of fruits and
vegetables, 485 mn livestock, 230 mn tonnes of foodgrains, 7 mn tonnes of fish, 489 mn poultry and 45,200 mn eggs.
However, in processing, India trails the developed and some developing countries by a wide margin. Only 2.2% for
fruits and vegetables are processed in India as against 65% for the US, 78% for the Philippines and 23% for China. Indias
processing of 26% of marine products, 6% of poultry and 20% of buffalo meat is also lower as against 6070% average for
the developed countries.
27
Export Market
Chart 2.14: Trend in exports of food and agro products: FY08 to FY12
Source: APEDA
Overall exports of food and agro products grew at four-year CAGR of 28% duringFY08FY12 to ` 860 bn in FY12. This
growth was driven largely by superior growth of export of animal products such as buffalo meat, poultry products, animal
casting and other processed foods growing, which grew at more than 30% each.
The contribution of animal products to exports registered an upward trend from 16% in FY08 to 17.6% in FY12 whereas
the contribution of cereals declined from 47% in FY08 to 36% in FY12 mainly due to export ban on non-basmati rice, export
duty on basmati rice, and restrictions on private participation in wheat purchases.
Table 2.11: Segment-wise major export destinations
Segments
Major markets
Floriculture
UAE, Netherlands, UK, Pakistan, Bangladesh, Malaysia, Saudi Arabia, Sri Lanka, Malaysia, Qatar
US, UK Malaysia, Netherlands, Philippines, Germany, Pakistan, Canada, Nepal, Russia, China,
Australia, France, Angola, Belgium, Singapore, Yemen, Thailand Kuwait
Animal Products
Egypt, Philippines Kuwait, Iraq, Angola, Jordan, Oman, Congo, US, Afghanistan, Vietnam,
Malaysia, Saudi Arabia
Cereals
Vietnam, Malaysia, Bangladesh, Yemen, US, UK, Taiwan, Indonesia Sudan, Singapore, UAE, Iran,
Kuwait, Saudi Arabia
Source: APEDA
Government of India (GoI) has implemented schemes for upgrading technology and expanding and modernising the food
processing industries to attract potential entrepreneurs. The table below indicates the financial assistance released by the
Ministry for food and agro products.
28
Table 2.12:
Segment/Year
FY09
FY10
NA
NA
190.1
0.18
0.23
0.46
Diary Processing
NA
NA
108.8
Fish Processing
NA
NA
12.6
56.26
36.13
Pulses
68.87
16.23
43.15
Flour
99.83
39.36
90.75
NA
NA
27.3
183.7
224.72
196.74
Alcoholic Beverages
Consumer Industries
Source: Ministry of Food Processing Industry
The countrys food processing market is opening up to a wide range of investors across the globe. Government is also actively
encouraging investment in agro processing industries to reduce wastage and boost value addition. As per extant policy,
FDI up to 100% is permitted under the automatic route in the food infrastructure (Food Park, Cold Chain/Warehousing).
Foreign participation of up to 100% for most processed items except alcoholic beverages and items reserved for small scale
units has also been approved by GoI.
During FY01 FY12, the cumulative FDI inflows in the food processing sector which includes food processing industries,
fermentation industries, vegetable oils & vanaspati and tea & coffee industries stood at ` 127.5 bn. The cumulative FDI
inflows during this period in the sector accounted for 1.65% of the total FDI inflows in the country. In the sector, maximum
cumulative FDI inflows has been done in food processing industries at ` 64.9 bn followed by fermentation industries at `
45.1 bn during FY01 FY12.
Credit deployment by the scheduled commercial banks to the food processing sector has also shown a growing trend over
the period of past few years. As per RBI, the total bank credit outstanding to food processing sector stood at ` 922.53 bn
as on Dec 31, 2011, 17% higher than the amount as on the same period previous year. Outstanding bank credit includes
any principal amount which has become due from the units which must have not reapid the amounts. The share of food
processing sector in the total credit outstanding to all Industries stood at 4.96%, almost the same as during the previous
year.
Chart 2.15: Credit deployment to food processing industries
29
The total plan outlay of the Ministry rose from ` 6.5 bn during the 10th Plan to ` 40.3 bn during the 11th Five Year Plan. In
the 11th plan, maximum increase in the outlay was seen under Scheme for Infrastructure Development, wherein the plan
outlay has increased from `. 1.8 bn in 10th plan to `. 26.13 bn. The scheme-wise outlays for 11th Plan are given below:
Table 2.13: Total Outlays for the 11th Plan period (2007-2012) (Rsbn)
Scheme for Infrastructure Development
26.13
6.00
Scheme for Quality Assurance, Codex standards, R&D and promotional activities
2.50
0.65
3.25
1.78
The 11th Five Year Plan approach was mainly driven by Vision 2015 which focused on increasing level of processing of
perishables, value addition and share in global food trade. The plan included various new components such as promoting
the spirit of public private partnership and integrated approach with appropriate emphasis on backward linkages. The
major thrust areas of the 11th five year plan were development of value chain and processing infrastructure, upgrading or
modernisation of technologies, promoting quality certification and standards, strengthening of institutional mechanism for
skill development etc. Some of the policy measures and initiatives taken by GoI during the plan period include:
Most processed food items have been exempted from the purview of licensing under the Industries (Development &
Regulation) Act, 1951.
The industry is includedon the priority sector list facilitating easy availability of finance.
Excise duty levied on ready-to-eat products, instant food mixes, aerated drinks and fruits and vegetables processing
units have been reduced.
GoI has approved foreign participation of up to 100% for most processed items except alcoholic beverages and items
reserved for small scale units.
A large number of foreign collaborations have been approved.
Excise Duty of 16% on dairy machinery has been completely waived off and excise duty on meat, poultry and fish
products has been reduced from 16% to 8%.
Tax concessions (100% IT deduction for 5 years and 25% in next 5 years for new agro processing, waiver of excise duty
on dairy machinery, zero input duty on EOUs etc) External commercial borrowings to be available for cold storage
Launching of National Mission on Food Processing
Capital investment in creation of modern storage capacity eligible for viability gap funding
Ministry of Food Processing industries also formulated appropriate policies and implemented many schemes targeted to
infrastructure development, technology upgradation, quality assurance, reduce wastage and increase value addition in the
value chain.
30
For the 12th Five Year Plan (2012-2017) greater emphasis would be laid on decentralised process of implementation with
greater involvement of states in selection of projects and monitoring their implementation. In this five year plan, major
thrust would be on addressing critical issues impacting the value chain in the sector by focusing on policy making and
coordination instead of project implementation, so as to. Also, the existing focus on infrastructure development will
be continued with the expansion of scope and depth so as to ensure sustainability of the value chains. Some of the key
recommendations of the working group for the 12th plan activities include:
Setting up of National Mission on Food Processing to improve coordination and implementation of schemes and to
enable greater involvement of state governments.
Expanding and modifying existing infrastructure development schemes
New Mega Food Parks
Additional cold chain projects
Establishment of new abattoirs and modernization of existing abattoirs
Develop and strengthening of existing and new institutions
Taking up a nationwide skill development program along the lines of special projects for skill development of rural
youths under SGSY of MoRD.
Putting in place a network of food testing labs (Government/ Private) by providing incentives.
31
Encouragement for larger participation in Codex deliberations and setting up of Codex Cell to promote, coordinate
and monitor related initiatives at the level of stakeholders such as industry associations, national research institutions
etc.
Setting up of an Innovation Fund and Venture Capital Fund for Food Processing to promote innovations and technology
development as well as to support conversion of the innovations into viable business opportunities.
The total outlay of ` 52.25 bn for the 12th plan period has been proposed. During 12th plan, scheme for Mini Food Parks is
being proposed to provide for a maximum grant of ` 200 mn, over a minimum area of 30 acres which may facilitate setting
up of 15 such Mini Food Parks. It has been proposed to support 120 more integrated cold chain projects, out of which 20
projects would be of irradiation facilities. During the 12th plan, establishment of 90 new abattoirs and modernisation of
150 existing abattoirs has also been proposed out of which 40 abattoir projects would be taken up during first two years of
the 12th Plan, which would include 20 projects for setting up new abattoirs and 20 projects for modernisation of existing
abattoirs. In the field of strengthening of institutions, establishment of 10 regional centres for National Institute of Food
Technology Entrepreneurship & Management (NIFTEM) and 8 Indian Institute of Crop Processing Technology (IICPT)
centres across the country has been proposed.
Although food processing industry in India is enjoying the benefits of diverse and rich resource base and locational
advantage, there are many constraints which the industry is facing some of which include non-availability of adequate
critical infrastructural facilities, like cold chain, packing and grading centres, lack of adequate quality control and testing
infrastructure, inefficient supply chain, insufficient credit supply, obsolete machinery, lack of skilled manpower, high
taxation, high packaging cost, high inventory carrying cost affordability and cultural preference for fresh food. Besides,
presence of fragmented industry players and multiple laws also pose barriers to the growth prospects. Strict maintenance
of quality standard, labelling and traceability and increasing competition are some of the threats faced by this industry.
India has the potential of becoming one of the largest producers in the food and agricultural sector globally. The country
is endowed with a large production base for a variety of food crops due to its varied agro-climatic conditions. To realise
the vast potential of Indian agriculture, enhance the farmers income, generate employment opportunities, provide choice
to consumers at affordable price and contribute to overall national growth, GoI, through the Ministry of Food Processing
Industries, has adopted Vision 2015 which envisages:
Increasing level of processing of perishables from 6% to 20%
Enhancing value addition from 20% to 35%
Increasing share in global food trade from 1.5% to 3%
The initiatives identified for development to provide support and thrust to the food processing industries in India include:
establishing Mega Food Parks; modernised abattoirs, cold chains and infrastructure for preservation of foods, upgrading
safety and quality of street food and establishing and upgrading quality control laboratories.
32
As per the Ministry of Textiles, between FY07-FY12, Indias cloth production (including Khadi, wool, and silk) grew at
a 2.8% CAGR, mainly driven by the small scale, independent powerloom sector. During the same period, Indias cloth
production recorded y-o-y growth in each of the years, except FY09 and FY12. During FY09, cloth production declined
by 2% to 54,966 mn sq mtrs, mainly due to lower output by the handloom and decentralized power loom sector. In FY10,
cloth production increased 9.8% to 60,333 mn sq mtrs. However, the growth lost momentum during FY11 with production
growing 3.7 % to 62,559 mn sq mtrs. The total cloth production however, faced a decline in production by 2% during FY12
to 61,364 mn sq mtrs. During Apr-Aug 2012, cloth production stood at 26,554 mn sq mtrs.
Chart 2.15: Indias Cloth Production (Mn Sq Mtrs)
The composition of cloth production has remained more or less unchanged during the past decade. Between FY07-FY12,
the average share of cotton in total cloth production was around 49% and average share for non-cotton cloth was 38%.
During FY11, production of cotton cloth grew 9.7% 31.7 bn sq mtrs and declined 3.5% in FY12 to 30.5 bn sq mtrs and stood
at 14.1 bn sq mtrs as on Aug 2012. Production of non-cotton cloth declined 4.6% in FY11 and further declined 0.82% in FY12
to 61.3 bn sq mtrs and stood at 26.5 bn sq mtrs as on Aug 2012.
33
Export Scenario
Textile exports play an important role in the overall exports of the country. The Indian textiles and clothing industry is
one of the largest contributors to the countrys exports. Exports of textiles have increased steadily over the last few years,
particularly after 2004, when textiles exports quota stood discontinued. Indias textiles exports reached US $ 22.2 bn in FY08.
However, exports declined 5% to US $ 21.1 bn in FY09 but picked up growth again by 6.5% to reach US $ 22.4 bn in FY10
to US $ 27.8 bn in FY11, an increase of 23.8%. In FY12, textile exports stood at US $ 33.1 bn, an increase of 19.4%. The total
textile exports during AprAug 2012 (provisional) were valued at US $ 10.1 bn.
Chart 2.17: Indias Textiles Exports (US $ billion)
India has the potential to increase its textile and apparel share in world trade. The Indian textiles industry produces a
wide variety of fibres, from cotton to man-made, wool, silk, jute, and multiple blends catering to different demands and
needs of companies. India has become a popular destination for many big global retailers due to its strength of vertical and
horizontal integration. The quality of the countrys products is seen in the repeat orders from these global companies and
the significant growth in their outsourcing from India. Textiles form one of the largest components of Indias exports and
can grow further and faster. Given the growth in textile exports due to the investment flowing in this sector to expand the
capacity in the entire value chain, the working group constituted by the Planning Commission has estimated the overall
growth for exports at 15% with an export target of US $ 65 bn and creation of 25 mn additional jobs by end of Twelfth Five
Year Plan (FY17).
Table 2.14: Projections of Exports for Twelfth Five Year Plan (2012-17)
US $ Mn
FY13
FY14
FY15
FY16
FY17
Cotton Textiles
8400
9408
10537
11801
13218
6380
7401
8585
9959
11552
880
968
1065
1171
1288
Silk Textiles
770
847
932
1025
1127
Clothing
Woollen Textiles
16520
19494
23002
27143
32029
Total
32950
38117
44121
51099
59214
4235
4659
5124
5637
6200
37185
42776
49245
56736
65414
Source: Planning Commission, Working Group for Twelfth Five Year Plan (2012-17)
34
In the textile sector, 100% Foreign Direct Investment (FDI) is allowed under the automatic route. The industry attracted FDI
worth US $ 1.15 bn between Mar 2001 and Jun 2012, which accounts for 0.66 % of the total FDI inflows in the country. FDI
in the textile industry stood at US $ 164 million in FY12 and stood at US $ 33 million as on Jun 2012.
Plan Expenditure
The total plan expenditure as on Mar 2012 is ` 42.59 bn (provisional). This is 85.19% of the budgeted estimates of ` 50 bn
for FY12. The total plan expenditure as on Sep 2012 is ` 10.86 bn (provisional). This is 15.51 % of the budgeted estimates of
` 70 bn for FY13.
Union-Budget FY13
A reduction of excise duty on readymade garments is expected to result in a decline in the cost burden on the manufacturers.
Further, a reduction in customs duty on titanium dioxide is expected to make imports of titanium dioxide cheaper. Two
more mega handloom clusters were announced in addition to four mega handloom clusters already operational. These
clusters will help the weavers in technology upgradation and product diversification. Besides that, a power loom mega
cluster is also proposed to be set up in Maharashtra. It is expected that the power loom cluster will have modern machinery,
testing services, and have a Computer-Aided Design (CAD) studio to address the need of the local artisans and weavers. In
addition to this, a pilot scheme has also been proposed for promotion of geotextiles.
Government Initiatives for Textile SMEs
Automated shuttle-less looms exempted from basic customs duty of 5%.
Full exemption from basic customs duty on automatic silk reeling and processing machinery and its parts.
Currently, excise duty of 10% is applicable on branded readymade garments, with abatement of 55% from the retail
sale price. Now, with the proposed increase in duty to 12%, the abatement has been enhanced to 70%. As a result, the
incidence of duty, as a percentage of the retail sale price would come down from 4.5% to 3.6%.
Reduction in basic customs duty from 15% to 5% on wool waste and wool tops.
Reduction in customs duty from 10% to 7.5% on titanium dioxide.
Financial package of ` 38.84 bn for waiver of loans to handloom weavers and their co-operative societies.
New handloom cluster in Prakasam and Guntur districts of Andhra Pradesh.
Weaver Service Center in Mizoram, Nagaland, and Jharkhand.
Powerloom mega cluster in Maharashtra with a budget allocation of ` 700 mn.
` 5,000 mn pilot scheme in the 12th Five Year Plan for promotion and application of geo-textiles in the North-Eastern
region.
Source: Union Budget FY13, D&B Analysis.
Future Outlook
The Working Group of the Twelfth Plan (2012-17) projects an average industrial growth of 11-12% along with significant
growth in export and employment. With growth in textiles production, employment in this sector is also expected to grow
15%. The employment in textiles is expected to increase to 52 mn persons by the terminal year of the Twelfth Plan.
35
Table 2.15: Sector-wise and fibre-wise cloth production during the Twelfth Plan (2012-17) (Mn Sq Mtrs)
Type
Mill
FY13
FY14
FY15
FY16
3201
Powerloom
43922
48973
54605
60885
67886
11.5
Handloom
8082
9011
10047
11203
12491
11.5
16743
18577
20611
22868
25371
10.9
863
874
884
895
906
1.2
Total
72334
80636
89908
100270
111847
11.5
Cotton
36693
41096
46027
51551
57737
12.0
9524
10619
11841
13202
14721
11.5
25248
28026
31109
34530
38329
11.0
891
931
973
1017
1063
4.5
72356
80672
89949
100300
111848
11.5
Hoseiry
Blended
100 per cent Non-cotton
Khadi wool & silk
Total
Source: Planning Commission, Working Group for Twelfth Five Year Plan (2012-17)
36
4419
2724
3761
FY17
5193
17.5