Artificial Intelligence in Manufacturing Industry in India 2023 Part-I

Artificial Intelligence in
Manufacturing Industry
in India 2023 (Part-I)
APRIL 2023
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Table of Contents
Chapter 1: Chapter 4: Chapter 6:
Executive Summary Use Cases of AI in the Manufacturing Industry
Market Overview
1.1. Executive summary 6.1. Use cases of AI in the manufacturing industry
4.1. Manufacturing market –An overview
4.2. IoT in manufacturing market in India overview
4.2.1. Market size and growth forecast based on value
(FY 2021– FY 2027e)
4.3. Major global players providing AI-based manufacturing
Chapter 2: products/solutions Chapter 7:
Socio-economic Indicators Case Studies
2.1. Socio-economic indicators 7.1. Case study – Blue Star Limited
7.2. Case study – TVS Motor Company Limited
7.3. Case study – JK Tyre & Industries Limited
7.4. Case study – Bajaj Auto Limited
7.5. Case study – Asian Paints Limited

Introduction Application of AI in Manufacturing Impact of COVID-19
3.1. Market definition and structure 5.1. Major applications 8.1. Impact of COVID-19
3.2. Manufacturing industry in India 5.2. Sector-wise applications
3.3. Major stockholders
| SMART MANUFACTURING(INDUSTRY 4.0) MARKET IN INDIA 2023 2

Table of Contents
Government Initiatives Competitive Landscape (Continued)
Competitive Landscape
9.1. Government initiatives 11.9. Microsoft Corporation India Private Limited
11.1. Tata Consultancy Services Limited
11.10. Universal Robots (India) Private Limited
₋ Company information
₋ Business description
₋ Products/Services
₋ Key people
Chapter 10: Chapter 12:
₋ Financial snapshot
Market Influencers Recent Developments
₋ Key business segments
10.1. Market drivers 12.1 Recent developments
₋ Key geographical segments
10.2. Market challenges
*Financial and market segments information covered only
for public companies
11.2. Wipro Limited
11.3. Abee Research Labs Private Limited
11.4 EroNkan Technologies Private Limited Chapter 13:
11.5. Flutura Business Solutions Private Limited Appendix
11.6. LivNSense Technologies Private Limited 13.1. Research methodology
11.7. Altizon Systems Private Limited 13.2. About Netscribes
11.8. IBM India Private Limited 13.3. Disclaimer
| SMART MANUFACTURING(INDUSTRY 4.0) MARKET IN INDIA 2023 3

Chapter 1: Executive Summary

Executive Summary
• The manufacturing industry in India is gradually shifting towards more automated and digitized manufacturing, which is expected to increase productivity
and efficiency
Market overview • Although the use of AI is growing at a slow pace in the industry, it is expected to disrupt the manufacturing market in the coming years
• The Internet of Things (IoT) in manufacturing market in India was valued at INR 422.57 Bn in FY 2022. It is expected to reach INR 774.90 Bn by FY 2027,
expanding at a compounded growth rate of 13.32% during the FY 2023 – FY 2027 period
Drivers Challenges
Drivers and • Supportive government initiatives • High-cost constraints
challenges • Increase in investments in AI in the manufacturing industry • Lack of emphasis in the research and development of AI
• Rise in the demand for IIoT and factory automation • Inaccuracy and cleaning of data
• Social distancing norms and the nationwide lockdown imposed by the government, which induced travel restrictions, migration of laborers, and supply chain
COVID-19 impact disruptions, created a multi-pronged negative effect on the manufacturing industry
• The pandemic accelerated the process of digital transformation in manufacturing
Major players
Competitive LivNSense Technologies Private

Tata Consultancy Services Limited Wipro Limited Abee Research Labs Private Limited
Limited
landscape
LivNSense Technologies Private Microsoft Corporation India Private Universal Robots (India) Private
IBM India Private Limited
Limited Limited Limited
| ARTIFICIAL INTELLIGENCE IN INDIAN MANUFACTURING INDUSTRY 2023 5

Chapter 2: Socio-economic Indicators

Socio-economic Indicators
Total population
1.438 1.451
1.411 1.425
1.383 1.397
1.354 1.368
1.324 1.339
Bn
1.309
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Population density
483.9 488.3
479.3
Persons per sq. km
470 474.7
460.4 465.2
450.4 455.4
440.3 445.4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Socio-economic Indicators (Continued)
Sex ratio of total population Population based on age-group
Males per 100 females 0-14 15-24 25-49 50+

107.8
107.6 16.10%
17.10% 19.40% 21.20%
107.4
Axis Title
34.10% 35.30%
36.40%
37.30%
107.1
19% 18.50% 18% 17.30%
30.80% 28.40% 26.20% 24.20%
2010 2015 2020 2025 2010 2015 2020 2025

Axis Title
Urbanization trend
Urban Rural
67.20% 66.80% 66.40% 66% 65.50% 65.10% 64.60% 64.10% 63.60% 63.10% 62.60%
33.20% 33.60% 34% 34.50% 34.90% 35.40% 35.90% 36.40% 36.90% 37.40%
32.80%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Total fertility rate (children per woman) Infant mortality rate (deaths per 1,000 live births)
2.4 39
32
No. of infant deaths

No. of children
27
2.24
2.14
2010-2015 2015-2020 2020-2025 2010-2015 2015-2020 2020-2025
Number of births Number of deaths

124.4
52.4
121.2 48.7
Mn
Mn
119.7 46.2
2010-2015 2015-2020 2020-2025 2010-2015 2015-2020 2020-2025

Combined literacy rate
Male Female Overall
82.10%
75.30% 74%
64.80% 65.50%
53.70%
2001 2011
Rural literacy rate Urban literacy rate

Male Female Overall Male Female Overall
86.30% 89.70% 85%

78.60% 79.90% 79.90%
70.70% 68.90% 72.90%
58.70% 58.80%
46.10%
2001 2011 2001 2011

Gross domestic product (GDP) growth rate Total Foreign direct investment (FDI) inflows
6.79% 6.53% 81.97

GDP growth rate compared
74.39
4.04%
60.97 62.00
to previous year
USD Bn
2017 2018 2019 2020
-7.25%
FY 2018 FY 2019 FY 2020 FY 2021
Average consumer price index (CPI) inflation Unemployment rate
9.63% 7.11%
5.41% 5.33% 5.27%
5.24%
4.00% 3.69%
2017 2018 2019 2020 2017 2018 2019 2020

Access to safe drinking water (by Indian households)
Urban Rural Total

90.0% 91.4%
82.7% 85.5%
73.2% 77.9%
2001 2011
Exchange rate
Period maximum Period average Period minimum
73.87
68.36 70.79 72.34
66.11 63.62 63.37
61.38
74.1 73.94 78.62
INR vs USD
64.18 67.20 65.13 68.45 70.43
74.41 72.41 76.93 76.39 83.03

67.15 68.88 68.39
2015 2016 2017 2018 2019 2020 2021 2022

Chapter 3: Introduction

Market Definition and Structure
• According to the Association for Advancement of Artificial Intelligence (AAAI), artificial intelligence (AI) is defined as the “scientific understanding of the mechanisms underlying thought
and intelligent behavior and their embodiment in machines”
• The AI technology mainly spans five key segments – Logic-based tools, machine learning, probabilistic method, embodied intelligence, and search and optimization
Artificial intelligence
Probabilistic Embodied Search and

Logic-based Machine learning
method intelligence optimization Third industrial
revolution
• Inductive logic • Unsupervised • Natural language • Ambient • Evolutionary • 1970s-2000s
programming learning processing computing algorithms • Electronic
• Robotic process • Supervised • Decision networks • Distributed automation
automation learning • Computer vision artificial
• Export systems • Reinforced intelligence
Fourth industrial
learning • Autonomous
• Neural networks systems revolution
• Deep learning • 2010-present
• Intelligent
automation

Market Definition and Structure (Continued)
• AI can transform any data-oriented industry, including manufacturing, agriculture, banking, healthcare, retail, education, legal service, Industrial Revolutions
utilities, transport, tourism, and media
• The versatility of AI allows it to perform a wide range of operations
• The fourth industrial revolution or Industry 4.0, propelled by cyber-physical systems, big data analytics, IIoT, cloud computing infrastructure,
AI, and 3D printing, has brought about an evolution in manufacturing
First industrial
• This report explores the use of AI in manufacturing across industries such as automotive, power and energy, pharmaceutical, heavy metals revolution
and machinery manufacturing, semiconductor and electronics, and food and beverage • Late 18th century
• Power generation
Artificial intelligence
Second industrial
revolution
• Beginning of the
20th century
Manufacturing Healthcare Banking Retail Agriculture • Industrialization
• Computer vision- • Predictive analysis • Natural language • Machine learning- • Image processing Third industrial
enabled quality to detect early- processing for powered
• Machine learning- revolution
control monitoring stage diseases conversational bots personalized • 1970s – 2000s
enabled crop and
recommendations • Electronic
• Predictive analytics • Deep neural nets to • Image recognition soil monitoring
and inventory automation
interpret medical
• Machine learning- • Deep learning- management • Predicting impact
scans, pathology
enabled supply based fraud- • Natural language of weather on crop
chain management
slides skin lesions,
detection processing- output Fourth industrial
retinal images, and revolution
applications powered
endoscopy • 2010 – Present
‘conversational’
commerce • Intelligent
• Computer vision- automation
powered smart
shopping

Manufacturing industry in India
• In the past few years, the manufacturing sector has evolved significantly and has become one of the fastest growing industries
• The manufacturing industry has benefited from government efforts such as Make in India and Startup India, as well as the implementation of the goods and services tax (GST).
• Following are the key products which are included in this industry:
Indian manufacturing industry
Printing and
Leather and related Rubber and plastics Computer, electronic Other transport
Food products reproduction of
products products and optical products equipment
recorded media
Wood and products of Repair and Installation

Coke and refined Other non-metallic
Beverages wood and cork, except Electrical equipment of machinery and
petroleum products mineral products
furniture equipment
Other manufacturing
Chemicals and chemical Machinery and which includes jewelry,
Tobacco products Furniture Basic metals
products equipment n.e.c. bijouterie and related
articles, musical
instruments, sports
Fabricated metal goods, games and toys,
Pharmaceuticals,
Paper and paper products, except Motor vehicles, trailers medical and dental
Wearing apparel medicinal chemical and
products machinery and and semitrailers instruments and
botanical products
equipment supplies

Major Stakeholders
• The AI stakeholder ecosystem in India consists of practitioners, research organizations, government authorities, investors, and developers
• Practitioners include companies that use different kinds of AI applications
• Research organizations and industry bodies publish studies on AI
• Developers refer to domestic or international players that offer AI-based solutions
Government authorities Developers Researchers Practitioners

Chapter 4: Market Overview

Manufacturing Market – An Overview
India and global manufacturing market – Overview
Manufacturing share by country in 2022

• In 2022, the Indian manufacturing output accounted for a share of 3.30% of the global market
• Agricultural products, textiles, engineering goods, leather products, and chemicals
manufacturing supports the contribution of the country
• India is gradually shifting towards automated and digitized manufacturing
• Manufacturing industry is also focusing on areas such as robotics and automation to be
China competitive at a global level
United States 7.20% 5.80%
Japan
3.30%
Germany
3.00% 2.30%
India
South Korea 16.60% 1.90% • In Asian subcontinent, South Korea, accounts for around 3.0% of the market, and falls behind India
7.50% • China has surpassed the United States in manufacturing output, and accounts for 28.40% of global
Italy
1.80% manufacturing output
France ▪ The exports of consumer items from China (clothing, electronics, and textiles) contributes to
1.50% its high manufacturing share
United Kingdom 28.40% • The contribution of Asian countries in global manufacturing is projected to increase further acting as a
Mexico catalyst to technology investments in the countries including India

IoT In Manufacturing Market In India – Overview
Market size and growth forecast based on value (FY 2021-FY 2027e )
774.90
675.59
593.98
526.38
469.97
INR Bn
422.57
382.47
FY 2021 FY 2022 FY 2023e FY 2024e FY 2025e FY 2026e FY 2027e
Current market scenario

• The Internet of Things (IoT) in manufacturing market in India was valued at INR 422.57 Bn in FY 2022. It is expected to reach INR 774.90 Bn by FY 2027, expanding at a compounded
growth rate of 13.32% during the FY 2023 – FY 2027 period
• A strong IoT in manufacturing market will contribute to the adoption of artificial intelligence (AI) in India
• The major drivers of IoT in India's manufacturing sector have been the southern cities of Bangalore, Chennai, and Hyderabad
• A further pull factor for the southern portion of the country's IoT manufacturing sector is being created by newly developed towns like Kochi, Thiruvananthapuram, Coimbatore,
Visakhapatnam, Mysore, and Kozhikode
• IoT in manufacturing includes the application of predictive maintenance, business process optimization, asset tracking & management, logistics & supply chain management, real-time
workforce tracking & management, automation control & management in the area of manufacturing
• Manufacturing industries have adopted AI for factory automation, quality monitoring, prediction of equipment failure, order management, delivery management, and demand forecasting
• AI-based technologies such as advanced analytics, robotic process automation, and computer vision have disrupted the manufacturing industry

Major Global Players
Major global players providing AI-based manufacturing products/solutions
The U.S. China The U.K.
Germany France Japan
India Israel Canada

Chapter 5: Application of Artificial Intelligence in Manufacturing

Major Applications
• The manufacturing industry can optimize the production process through AI by improving the product quality and design, reducing labour costs, and minimizing the lengthy manufacturing
cycle
• An AI-based production plant consists of intelligent equipment, intelligent workshop and production line, intelligent supply-chain, intelligent management and service, smart software
development and integration, and smart monitoring and decision-making
• The major applications of AI in manufacturing include smart production, products and services, business operation and management, supply chain management, and business model
identification
Key applications
Business operation and Supply chain Business model

Smart production Products and services
management management identification
• Factory automation • Reducing the cycle of • Finance management • Delivery management • Customer feedback
• Order management product designing • Energy management • Demand forecast • Cost structure
• Production scheduling • Personalization of • Investment management • Emergency response • Capital investment
• Quality monitoring customers’ experiences • Human resource • Logistic services • Competitiveness
• Defect management • Exploring new management • Asset and equipment • Profit model
• Risk control opportunities management • Organizational structure
• Safe production • Improvement in • Transportation
• Performance monitoring marketing strategies • Distribution network
• Maintenance of fixed • Response to customers’ management
assets and machineries demands

Sector-wise Application
• Artificial intelligence (AI) offers enormous potential to improve industrial operations in a variety of industries, including automobiles, energy, pharmaceuticals, heavy metal and machinery,
semiconductors and electronics, and food and drinks.
Sector-wise application
Heavy metals and

Semiconductors and
Automotive Energy and power Pharmaceutical machinery Food and beverages
electronics
manufacturing
• Smart manufacturing of • Optimization of • Use of visual and design • Precise automation of • Automation to • Intelligent
automobiles and its standalone systems intelligence for drug designing and overcome labor manufacturing of food
parts • Customer profiling design and manufacturing shortage and beverages
• Inspection of vehicles • Intelligent energy development • Procurement planning • Inspection and quality • Smart quality checks
produced using AI- storage system • Eliminating counterfeit • 3D printing and checks with AI-based and inspections
based computer vision • Energy production pharmaceuticals modelling using AI- computer vision • Recipe suggestion and
• Autonomous driving forecasting • Prediction of clinical driven engine • AI-driven engine for innovation
• AI-based module for • Data-driven actionable trial outcomes • Suggestive designs designing • Supply chain
mobility-as-a-service insights • Estimation of medicinal through generative • Soldering and laser optimization
and inter-vehicle capabilities designs printing of microchips • AI-enabled monitoring
communication of quality compliance

Chapter 6: Use cases of AI in the Manufacturing Industry

Use Cases of AI in the Manufacturing Industry
• Global and domestic manufacturing companies find it difficult to maintain high quality standards while complying with quality
standards due to increased complexity of product designs
▪ Numerous incidents were recorded where inspectors/employees have either missed or neglected small flaws in these complicated
products
• This issue can be solved by using machines equipped with intelligent cameras to detect minor defects
▪ These intelligent machines use AI techniques to notify manufacturing teams about the emerging production faults that can cause quality
issues
▪ These faults, if not checked, can cause deviations in the product dimension and abnormalities in machine behavior
▪ Thus, manufacturing companies use automation to improve quality control through automated visual inspection tools for detecting
defects on production lines
• AI-enabled predictive maintenance systems are capable of self-monitoring and reporting manufacturing issues in real time
• Automated systems used in a manufacturing plant are governed by various AI-based quality checking algorithms, pre-set guidelines,
Quality check and inspecting sensors
▪ The data gathered by IoT sensors and pre-defined programing of AI algorithms govern superior quality assurance activities in
manufacturing businesses
▪ Thus, AI offers firms the opportunity to reduce loss due to wastage and improve the level of precision in heavy manufacturing tasks
• IBM has developed a solution using its Watson platform that can examine physical products in the manufacturing industry
▪ The idea was to provide ‘cognitive assistants’ to manufacturers to reduce errors and improve product quality
▪ The company claims that IBM Watson reduced validation time by 80% and decreased errors in manufacturing by 7% – 10%
• Qualitas Technologies (headquartered in Bengaluru) provides the Eagle Eye Inspection system
▪ It is equipped with cameras that offer robust automated quality-control process on a production line
▪ It is used in industries such as FMCG, electronics, pharmaceuticals, and food and beverages

Use Cases of AI in Manufacturing Industry (Continued)
• Generative design is a technique that combines designer inputs, AI algorithms, and cloud computing to create optimal designs
▪ The generative design software utilizes an iterative process to produce thousands of design options that are analyzed internally
• After acquiring the best design, the designer evaluates the option, modifies it, if necessary, and decides on the optimal design
Generative design • Global companies such as Airbus SE, Under Armour Inc., and Stanley Black & Decker Inc. use generative design to address
engineering difficulties and are developing the best design solutions
• By optimizing product designs, AI-based generative design solutions support manufacturing companies
• Digital twin refers to the virtual representation of physical products

▪ Digital replica utilizes virtual reality technology for creating a virtual model of any equipment
• Digital twin in the manufacturing industry is utilized to decrease the overall production cost, control assets, and minimize the
downtime caused by equipment failure
Digital twin • Moreover, by combining data with AI, machine learning, and data analytics, digital twins are modified along with their physical
counterparts in real time
▪ This allows design engineers to be cognizant of the impact of design changes on products, production line, supply chain, and maintenance
▪ Global organizations such as Woodward, Inc. and the Volvo Group use digital twins to optimize their manufacturing operations

Use Cases of AI in Manufacturing Industry (Continued)
• Predictive maintenance uses AI algorithm to identify anomalous behavior in a manufacturing unit

Predictive • This information (anomalous behavior) derived from the equipment smart sensors can be turned into meaningful and actionable
maintenance insights for proactive maintenance of assets, further preventing incidents that result in asset downtime or accidents
• Several Indian manufacturing companies (such as TVS Motor and JK Tyre & Industries Ltd) use AI-based predictive maintenance to
improve their productivity
• The demand for robots is picking up significantly in production facilities, owing to a shortage of labor and the need to maintain
quality
• According to the International Federation of Robotics, a total of ~2.44 million industrial robots are operating in various factories
around the world
Collaborative robots ▪ Globally, a total of 0.4 million industrial robots were installed in 2018, in which ~14,000 units were collaborative industrial robots
• Most of the collaborative robots are powered by AI, which makes them capable of taking intelligent decisions without any human
intervention
• Thus, AI has enabled cobots to handle more cognitive tasks and make independent decisions based on real-time data, further
optimizing processes

Chapter 7: Case Studies

Case Study – Blue Star Limited
About the company: The problem/the objective:
• Blue Star Limited is one of the leading air conditioner and • The manufacturing plant in Wada was experiencing quality rejection issues due to physical stress caused by
commercial refrigerator providers in India, headquartered in the copper tube expansion that was carried out manually
Mumbai • Copper tube expansion is a vital process in the production of shell and tube heat exchangers
• It manufactures products such as room air conditioners, water • Blue Star Limited aimed to use Industry 4.0 technology to optimize the process
purifiers, air purifiers, air coolers, water coolers, central air
conditioning, commercial refrigeration, cold storage, and
specialty products The solution (provided by Universal Robots A/S):
• Blue Star sells its products through 5,000 retail stores spread
around India • The company deployed collaborative robots (UR10 cobots) and AI technology (from Universal Robots A/S,
• The firm has an extensive network of 32 offices, five modern which is a manufacturer of small flexible industrial collaborative robot arms – based in Odense, Denmark)
manufacturing facilities, and 2,900 channel partners to optimize the task of copper tube expansion and eradicate stress and ergonomic risks
• Blue Star has manufacturing facilities located in Dadra, Himachal, • The integrated vision system, with the help of AI, detects and calculates the center position of copper
Wada, and Ahmedabad tubes that is shared with cobots to guide it to the precise position
• The organization has adopted advanced technologies such as IoT, • A multi-gripper then integrates a drill to expand the hole
machine learning, bots, and robotic process automation (RPA) to
enhance its manufacturing process
• In the past few years, it installed two UR10s in its Wada The benefit:
manufacturing plant and one in its Baddi production unit
• After deployment of UR10 cobots with AI technology, quality rejection came down to zero
▪ The installed cobots are capable of easily tracking inconsistency in products
• It helped to get rid of mental and physical stress during copper tube expansion
• Universal Robots A/S upskilled the cobot operators to handle such critical tasks that require a high level of
precision
• Use of cobots freed up Blue Star’s employees to handle other tasks that require human efforts

Case Study – Blue Star Limited (Continued)
• In 2017, Blue Star also incorporated the ThingWorx IoT platform • Blue Star Limited sought to improve its operational efficiency and factory quality across its manufacturing
from PTC Inc. to monitor its factory operations for enhancing facilities in the country
operational efficiency and plant quality ▪ It aimed at producing the highest quality products with less failures and unplanned downtimes
▪ It is a comprehensive, end-to-end technology platform,
specially designed for IIoT applications
The solution (provided by PTC Inc.):
• After exhaustive research, the company selected the ThingWorx IoT platform provided by PTC Inc. to
improve its operational efficiency
• PTC’s ThingWorx uses IoT, AI, and machine learning to improve productivity, innovation, and operational
efficiency in a production plant
The benefit:
• The ThingWorx platform leverages AI and machine learning technologies to reduce product failures
• By sending news alerts regarding errors, this platform reduces downtime caused by unplanned events
• This platform can also predict the failure time of a system
• It reduces overall delays in decision-making by providing detailed real-time data and creating visualizations
of the status of production systems

Case Study – TVS Motor Company Limited
• TVS Motor is one of the largest manufacturers of two-wheeler • TVS Motor aimed to drive IoT-enabled digital transformation in its production facilities by connecting
vehicles in India machines on the assembly line
• The company mainly designs and manufactures motorcycles, • The company strived to address critical aspects such as supporting heterogenous machines using
mopeds, scooters, and three-wheelers connectivity protocols, integrating the fully-functional line with existing IT systems, and providing accurate
• TVS 50, TVS Scooty, TVS Victor, TVS Centra, TVS Star, and TVS and reliable data for predictive analysis
Apache are among the popular two-wheelers sold by the firm
• It clocked a revenue of INR 182.17 Bn in FY 2019 The solution:
• TVS Motor registered a sale of 3.76 million units of two-wheelers
in FY 2019, with an 11.6% growth, compared to FY 2018 • As a solution, the company integrated the entire Datonis IoT suite provided by Altizon Inc
• TVS Motor has four production facilities located in Hosur, Mysore, ▪ Datonis Edge, which uses AI technology, was responsible for processing device data obtained from machines
and Nalagarh in India and Karawang in Indonesia on the manufacturing floor
• In April 2019, its Singapore-based subsidiary invested ~INR 480 ▪ Datonis IoT assisted in storing and processing the entire machine and manufacturing data, which further acts
Mn (USD 7 Mn) in the IIoT start-up, Altizon Inc. as a data source for Datonis MINT
▪ Altizon offers IIoT platform to address problems of factory ▪ And finally, Datonis MINT was used for process analytics and to obtain required insights
operations using edge computing, machine learning, and big data
• TVS Motor also uses Altizon’s comprehensive Datonis IoT suite to
enhance factory performance The benefit:
• The obtained insights helped the firm (TVS) to understand the faults in the production line at multiple
levels, which further improved productivity
• Critical insights related to the quality, condition, and production of products were derived, which in turn
helped the company trace them through its manufacturing life cycle
• These solutions assisted the organization in continuous monitoring of machine conditions
• New ways were discovered to optimize energy and use of other consumables

Case Study – JK Tyre & Industries Limited
• JK Tyre & Industries Limited is one of the leading tire • The company planned to transform its tire manufacturing process digitally
manufacturers globally, offering a wide range of products • It also planned to use its manufacturing process data for deep analysis to predict failure using machine
catering to the automotive industry condition monitoring
• The company is a subsidiary of the JK organization
• JK Tyre has a worldwide presence and is backed by production
support from 12 plants – Nine in India and three in Mexico
▪ The company has nine modern manufacturing plants in India –
The solution:
three in Mysore, three in Haridwar, one in Banmore, one in
Kankroli, and one in Chennai
• The combined manufacturing capacity of all the 12 plants is 35 • JK Tyre selected Altizon’s solution and deployed the Datonis IoT suite
▪ This suite comprises Datonis Edge, Datonis IoT, and Datonis MINT (Datonis Manufacturing Intelligence)
million tires per annum
▪ Datonis IoT and MINT were deployed on the cloud platform
• The firm deployed the Datonis IoT suite, provided by Altizon Inc, ▪ Datonis Edge was used to gather and analyze data to obtain real-time insights related to factory operations
to automate its critical production processes such as mixing,
extrusion, calendaring, cutting, winding, and curing
The benefit:
• The company carried out successful integration of IT/OT with the enterprise resource planning (ERP)
software
• It improved its production with the help of insights obtained from the quality analysis
• The Datonis IoT suite also helped the firm better monitor the condition of machines used in manufacturing

Case Study – Bajaj Auto Limited
• Bajaj Auto Limited is an Indian automotive manufacturing • Owing to the rising adoption of automation in the automotive industry (especially in the manufacturing
company headquartered in Pune, India plants), Bajaj Auto Limited planned to integrate automation solutions in its assembly lines
• The company develops and builds motorcycles, scooters, auto- • The two-wheeler assembly line involved labor-intensive and high-end precision movements
rickshaws, and their spare parts • The company aimed to incorporate standardized automation solutions in these assembly lines
• Bajaj Auto has three production units located in Waluj, Chakan,
and Pantnagar
• In November 2019, the firm invested ~INR 570 Mn (USD 8 Mn) in The solution:
the Indian start-up Yulu, which rents out bicycles and electric
scooters • After extensive research, Bajaj Auto deployed cobots provided by Universal Robots A/S
▪ As a part of this deal, the organization will also manufacture
• Cobots handled several processes such as material handling, decal application, deburring, bolt tightening,
customized electric scooters for Yulu
sealant application, and machine tending
• Since 2010, the company has incorporated over 100 collaborative
robots from Universal Robots A/S in its manufacturing process
• Bajaj Auto is the first Indian company to implement cobots in its
automotive assembly lines to improve its production capabilities
The benefit:
• Installation of advanced tools to carry out repetitive tasks with faultless precision propelled the growth of
the organization
• Benefits such as reduced power consumption and zero annual maintenance costs further aided the
company to drive phenomenal growth worldwide
• Deployment of ceiling-mounted cobots reduced the space constraint issue in a manufacturing facility
• The entire automation process also reduced the redundancy of tasks by completing the repetitive
movements
• Almost 50% of the workforce in this assembly line comprised women. Hence, installation of these cobots
eased their work

Case Study – Asian Paints Limited
• Asian Paints Limited manufactures, sells, and distributes products • The company strived for the digital transformation of its manufacturing process
such as paints, coatings, home decors, and bath fittings ▪ Asian Paints was seeking to use advanced and scalable manufacturing analytics technology to drive better
• It is at present one of the leading paint manufacturing companies decisions across its production facilities
operating in India with a group turnover of
INR 193.50 Bn
• The firm functions across 15 countries and has 26 production
facilities that serve consumers in over 60 countries The solution:
• Asian Paints Berger, SCIB Paints, Apco Coatings, Taubmans,
Causeway Paints, and Kadisco Asian Paints are subsidiaries of • The company deployed Sight Machine’s data analytics platform across its manufacturing plants in India to
Asian Paints transform production data into insights for enhancing productivity and efficiency
• In India, the company has 10 manufacturing plants located in • Sight Machine’s data analytics platform transformed manufacturing plant data into a digital twin of the
Ankleshwar, Sarigam, Patancheru, Kasna, Sriperumbudur, Rohtak, entire production process
Khandala, Taloja, Mysuru, and Visakhapatnam
• It designated Sight Machine Inc. (headquartered in California, the
US) to transform its manufacturing process digitally
The benefit:
• Initially, the company installed Sight Machine’s platform at its manufacturing plant in Sriperumbudur
▪ With the help of this platform, within a few weeks, Asian Paints reduced the overall cycle time on the first
targeted production line
▪ Sight Machine’s platform also helped Asian Paints identify 41 additional opportunities to enhance productivity
by using the data patterns obtained
• Using digital twin, the firm was able to identify and quantify contention and bottlenecks
▪ The organization was able to successfully reduce the cycle time on one of the production lines by 7%

Chapter 8: Impact of COVID-19

Impact of COVID-19
Impact of COVDI-19 on the manufacturing industry
Accelerated process of
Government support to digital transformation in
domestic self- manufacturing
Labor shortage due to
illness and lockdown sufficiency, reduction in
Rise in prices of raw Corporate tax, ease of
materials and lower restrictions
Susceptibilities of doing business, FDI
manufacturing industry’s production volumes policy reforms
Liquidity crunches
stretched working capital supply chain exposed
for SMEs
Annual Growth rate (in %) for manufacturing from 2019-20 to 2021-22

2019-2020 2020-2021 2021-2022
-1.4 -9.6 11.8
• The onslaught of COVID-19 resulted in negative growth of 9.6 during the severe COVID-19 hit period
▪ Social distancing norms, nationwide lockdown imposed by the government induced travel restrictions, migration of laborers, and supply chain disruptions
• This created a multi-pronged effect on the manufacturing industry
• The year 2021-2022 witnessed high growth of the manufacturing industry in India
▪ Government-initiated reforms like "Atmanirbhar" and others to improve India's export and manufacturing capacities
▪ Regulatory support for manufacturing and the establishment on industrial corridors
▪ Incentives provided for the manufacturing of bulk pharmaceuticals, automobiles, textiles, and for food processing
▪ Increased focus on defense equipment manufacturing
• The industry witnessed a paradigm shift in terms of business imperatives because of the pandemic
▪ The key aspects of this fundamental change is anticipated to be technology impetus, localization of business, operational flexibility, variable cost model, and supply chain resilience

Impact of COVID-19 (Continued)
COVID-19 led digitization of Indian manufacturing
• With the change in the Industry 4.0, automation of conventional manufacturing, and industrial practices, COVID-19 boosted digital manufacturing in India
• Increased use of robots, Shopfloor automation, use of sensors and data analytics, adopting IIOT technologies gained traction during the period
• The fallout of supply chain dependency of the world from China errored China’s position in the manufacturing sector
• India was seen as an alternative site for foreign investments for manufacturing, along side other Asian countries such as Vietnam, Malaysia,
Bangladesh, and Taiwan, with supported by their smooth regulatory environment and easily available labour
• In April 2021, to relocate its mobile and IT display production facility from China to Uttar Pradesh, Samsung Display Noida invested INR 48.25 Bn
• Indian companies accelerated their digital transformation to attract foreign investments and to set up pace for Industry 4.0
• Parimal Glass, a Gujarat-based glass manufacturer, in collaboration Smart Infocomm, installed a software with facial-recognition capability during
COVID-19, to maintain social distancing norms of social distancing in its facilities
▪ The company also used augmented reality using smart glasses for quality assessment of the produce
• Siemens India, used digital twin software and cloud IoT to reconfigure their manufacturing line and implement social distancing for the assembly line
workers
▪ Increased use of robots, Shopfloor automation, use of sensors and data analytics, adopting IIoT technologies gained traction during the period

Chapter 9: Government Initiatives

Government Initiatives
Samarth Udyog Bharat 4.0 SanRachna – BHEL HMT TechPort
• Ministry of Heavy Industry & Public Enterprises, • BHEL, a government-owned engineering and • HMT, a machine tool manufacturing company and a
launched ‘Smarth Udyog Bharat 4.0’ as an Industry 4.0 manufacturing firm, launched SanRachna, a Government of India undertaking, has launched a
initiative technology innovation platform technology innovation platform, HMT TechPort
• The program aims to promote the Industry 4.0 • It is an open technology platform created to identify • The platform helps the machine tool industry by
technology set throughout Indian manufacturing flaws in the current technologies used in India bringing technology and innovation ideas together
stakeholders (manufactures, vendors and customers) • The program will accomplish this goal by hosting through collaborative approaches
• Under SAMARTH Udyog, five Industry 4.0 awareness- challenges or contests on the platform for industry • It will assist users in completing new initiatives,
raising and branding centers have been authorized, experts resolving various manufacturing challenges, and
including: • Its goal is to unite young people, manufacturing delivering business results more quickly
• C4i4 Lab Pune, the Center for Industry 4.02. experts, academic experts, industries, and MSME • This project's primary goals are to increase the
IITD-AIA Foundation for Intelligent manufacturers on a single platform to brainstorm machine tool sector's competitiveness and empower
Manufacturing3 current technological challenges faced by local the manufacturing industry
• R&D Platform for I4.0 India at IISc Factory4 producers or anyone looking for a tech solutions • As a result, the platform will help the government
• The CMTI's Smart Manufacturing Demo and meet its goal of generating 25% of GDP from
Development Cell5 manufacturing soon
• Industry 4.0 initiatives at IIT Kharagpur's DHI
CoE for Advanced Manufacturing Technologies

Government Initiatives (Continued)
IIT-Madras - Knowledge Integration for Atmanirbhar Bharat Mission Global Partnership on AI (GPAI)
Technology Enrichment (KITE)
• Indian Institute of Technology, Madras, launched KITE, • On May 12, 2020, the Prime Minister of India, • In 2020, India along with economies such as the United
a manufacturing technology eco-platform at the Narendra Modi, announced an economic package of States, the United Kingdom, the European Union,
Advanced Manufacturing Technology Development INR 20 Trn under the Atmanirbhar Bharat mission Australia, Canada, France, Germany, Italy, Japan,
Centre (AMTDC) • The project focuses on encouraging self-reliance in Mexico, New Zealand, the Republic of Korea, and
• The platform will focus on enhancing and five areas – economy, infrastructure, technology, Singapore launched the Global Partnership on AI
implementing smart manufacturing, digital demography, and demand (GPAI) initiative to promote the use of AI and its
manufacturing, indigenous manufacturing, process, • It is expected to transform India into an emerging related research and bridge the gap between theory
and discrete manufacturing in the manufacturing center for manufacturing electronics, pharmaceuticals, and practice
sector medical equipment, ammunition, and arms • Through the initiative, India will participate in the
• The KITE Collaborative R&D Forum is a challenge forum • Embracing industry 4.0 solutions, indigenous research global development of Artificial Intelligence
for solution seekers and problem solvers to stay and development programs, and building innovation
connected, address challenges, and discuss indigenous centers are few of the key aspects of the mission
technology development • Atmanirbhar Bharat is projected to boost the country’s
• The KITE Intelligent Chatbot is an intelligent route self-reliance for frontier technologies beneficial for
guide bot that provides users with the necessary smart manufacturing. This in turn will create attractive
guidelines for navigating the platform and offers easy opportunities for the development and
access and a user-friendly experience implementation of technologies in the manufacturing
industry

International Collaborations
India-Israel Industrial R&D & US India Artificial Intelligence India And Germany
Technological Innovation Fund (I4F) (USIAI) initiative Collaboration
• In 2020, Israel's Start-Up Nation Central and India's • In March 2021, the US India Artificial Intelligence • In May 2022, India and Germany collaborated with an
iCreate signed a Memorandum of Understanding (USIAI) Initiative was launched by the Indo-U.S. emphasis on artificial intelligence (AI) startups and
(MoU), launching a bilateral programme to speed up Science and Technology Forum (IUSSTF) to encourage research, as well as to promote advance disciplines of
entrepreneurial cooperation, innovation, and the use of AI potential in the two nations in areas such science and technology such future manufacturing,
technological cooperation between the two nations as smart manufacturing and provide a forum for key electric mobility, cyber physical systems, quantum
• In January 2022, India and Israel approved 3 stakeholders to exchange, identify new R&D technologies, green hydrogen, and deep ocean
cooperative R&D projects worth INR 41.25 Mn as a opportunities in science and technology and discuss research
part of the India-Israel Industrial R&D and technical the current state of AI, and the related challenges • Machines, equipment, and industrial intermediate
Innovation Fund (I4F) and proposed steps to expand • The initiative is funded by the Department of Science products are Germany's principal exports to India;
the India-Israel collaborative ecosystem & Technology (DST), the Governments of India and the thus, the collaboration will almost certainly increase
▪ I4F aims to encourage, facilitate, and assist United States Department of State India's prospects for smart manufacturing
India and Israel's combined industrial R&D,
which will result in the co-development and
commercialization of cutting-edge technologies
that will benefit both nations

Chapter 10: Market Influencers

Key Influencers and Their Impact
Impact analysis of drivers and challenges
Key influencers Impact in 2019 Impact by the end of 2024
Market Drivers
Supportive government initiatives
Increasing investments in AI in the manufacturing industry
Rising demand of IIoT and factory automation
Market challenges
High cost constraints
Lack of emphasis in research and development of AI
Inaccuracy and cleaning of data
Score: Low Medium High Most influential

Market Drivers
Supportive government initiatives
• Initiatives undertaken by the Indian government such as Make in India and Start-up India, and Industry 4.0 have incentivized technology-based start-ups, software
firms, and manufacturing companies to incorporate technology, including AI, in their daily processes, to increase accuracy, flexibility, productivity, and efficiency
▪ Furthermore, the Skill India initiative has helped in reskilling the workforce in accomplishing tasks that require a new skillset
• The National Association of Software and Services Companies (NASSCOM) inaugurated centers for AI and data science in Bengaluru and Hyderabad to develop
emerging disruptive technologies such as AI/ML and leverage the power of data science
▪ These centers have also allocated resources, encouraged start-ups, and utilized global best practices for the increasing use of AI in India
• Thus, these initiatives have influenced the widespread adoption of AI in the manufacturing industry in the country
Increasing investments in artificial intelligence in India’s manufacturing industry
• India’s start-up landscape is being transformed through increasing investment activities for intelligent automation, artificial intelligence, machine learning, and Big
Data
• In 2018, AI start-ups operating in India and worldwide raised approximately INR 36,244.77 Mn (USD 529.52 Mn)
▪ Start-ups that have AI as a core product or are developing AI-based technologies bagged the largest funding from leading venture capital firms and investors globally
• Over the past few years, venture capital firms and global companies made several notable investments in the Indian AI start-ups serving the manufacturing industry
• These fundings provide financial support to Indian companies to further develop their products, expand existing teams, and increase net sales
▪ Hence, surging investments in AI-based start-ups catering to the manufacturing industry is expected to fuel the growth of the market in India

Market Drivers (Continued)
Rising demand of IIoT and factory automation
• The major challenge for manufacturing companies in India is to develop smooth machine-to-machine (M2M) communication that can enhance production capacity
and flexibility
▪ To resolve this issue, companies are turning to IIoT by incorporating more intelligent controls, sensors, and smart switches that is driving the IIoT market in the country
• Moreover, by harnessing the power of AI and data analytics, industrial IoT is expected to benefit the manufacturing industry by providing greater energy efficiency,
predictive maintenance, higher product quality, reduced downtime, and better insights for faster decision-making
▪ Thus, the demand for AI in the manufacturing industry is set to increase during the forecast period

Market Challenges
High-cost constraints
• Transforming traditional production factories to AI-driven manufacturing units requires a significant capital investment
▪ This huge investment includes the procurement cost and installation expenses of connected sensors, intelligent cameras, data analytics software, and other components
• Although several manufacturers are converting their factories into intelligent production houses, others are reluctant to invest a handsome amount for availing the
benefits of AI
• Hence, the financial burden that comes with the adoption of data-driven software and AI-powered solutions is impeding the penetration of AI in the country’s
manufacturing industries
Lack of emphasis in the research and development of AI
• In India, there is a dearth of capital investment in the research and development of AI as compared to other countries such as the US, China, Germany, South Korea,
and Japan. These nations have invested significantly for the development of AI systems, technologies, and infrastructure in various industries
• India lacks not only in developing physical infrastructure but also the R&D process that is required to build an environment to foster the growth and use of AI systems
• Even though there are Indian start-ups building competition in the AI market, most investors (domestic and international) hesitate to invest in AI, either due to the fear
of failure or a lack of understanding of AI systems

Market Challenges (Continued)
Inaccuracy and cleaning of data
• AI is used for unlocking valuable information from raw data which can be further transformed into intelligent predictions required for decision-making in
manufacturing plants
• Data obtained from industrial systems are of low quality that makes it difficult for operators to extract valuable insights from it
▪ These data are highly transient, and interpretation requires domain expertise
• Moreover, inaccuracy of data and erroneously collected data points are the major hurdles for this industry
▪ Cleaning high volume of such data immediately leads to wastage of time

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Artificial Intelligence in Manufacturing Industry in India 2023 Part-I

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Chapter 3: Chapter 5: Chapter 8:

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11.7. Altizon Systems Private Limited 13.2. About Netscribes

11.8. IBM India Private Limited 13.3. Disclaimer

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Competitive LivNSense Technologies Private

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Sex ratio of total population Population based on age-group

Males per 100 females 0-14 15-24 25-49 50+

2010 2015 2020 2025 2010 2015 2020 2025

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No. of infant deaths

2010-2015 2015-2020 2020-2025 2010-2015 2015-2020 2020-2025

Number of births Number of deaths

2010-2015 2015-2020 2020-2025 2010-2015 2015-2020 2020-2025

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Combined literacy rate

Male Female Overall

Rural literacy rate Urban literacy rate

86.30% 89.70% 85%

2001 2011 2001 2011

| ARTIFICIAL INTELLIGENCE IN INDIAN MANUFACTURING INDUSTRY 2023 10

6.79% 6.53% 81.97

Average consumer price index (CPI) inflation Unemployment rate

5.41% 5.33% 5.27%

2017 2018 2019 2020 2017 2018 2019 2020

| ARTIFICIAL INTELLIGENCE IN INDIAN MANUFACTURING INDUSTRY 2023 11

Access to safe drinking water (by Indian households)

Urban Rural Total

64.18 67.20 65.13 68.45 70.43

74.41 72.41 76.93 76.39 83.03

2015 2016 2017 2018 2019 2020 2021 2022

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Probabilistic Embodied Search and

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Indian manufacturing industry

Wood and products of Repair and Installation

| ARTIFICIAL INTELLIGENCE IN INDIAN MANUFACTURING INDUSTRY 2023 16

Government authorities Developers Researchers Practitioners

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India and global manufacturing market – Overview

Manufacturing share by country in 2022

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FY 2021 FY 2022 FY 2023e FY 2024e FY 2025e FY 2026e FY 2027e

Current market scenario

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Major global players providing AI-based manufacturing products/solutions

The U.S. China The U.K.

Germany France Japan

India Israel Canada

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Business operation and Supply chain Business model

| ARTIFICIAL INTELLIGENCE IN INDIAN MANUFACTURING INDUSTRY 2023 23

Heavy metals and

| ARTIFICIAL INTELLIGENCE IN INDIAN MANUFACTURING INDUSTRY 2023 24