TECHNOLOGICAL PRODUCT

MARKETING
 Where do we encounter in technologies in everyday life?

Technologies are everywhere – Yet not always visible

What will be there longest has to be carefully planned!

(Years)
Indian Machine Tools Industry
The current Indian Machine Tools sector is very Small
in comparison to the global market size

Global Machine Tools Market

 Total world market size; USD 65.3 bn
 World leader Japan has USD 10.5 bn has 16% market share
 China leads consumption with US $ 9.3 bn in 2004 ( 20% of world wide
production). It imported US $ 5.8bn ( 62%)

Indian Machine Tools Industry

• Domestic Market Size : USD 620 mn ( consumption)
• Ranks 19th in overall world machine tools production
• Contributes 0.5% to overall world production
• Exports : USD 11 mn
• Exports mainly to developed countries
Manufacturers are geographically dispersed

• Top 10 producers account for 70% of the output in India

• Around 70% of the players are in the small & medium scale sector

• Hubs of manufacturing centres located near the raw material industry

or user industries

Machine Tool hubs in India

• Mumbai and Pune in Maharashtra;
• Batala, Jullunder and Ludhiana in Punjab;
• Ahmedabad, Baroda, Rajkot Jamnagar, and Surendranagar in
Gujarat;
• Coimbatore and Chennai in Tamil Nadu;
• Bangalore in Karnataka.
Production has grown at a high rate during
the period 2002 to 2006

Metal Forming
bending machines, presses,
cold-heading machines,, Production Rs 528 mn Production Rs 860 mn
shears, coil slitters, and CAGR 47% CAGR 30%
stamping machines

Metal Cutting
Turning centres, Machining
centres, grinding centres Production Rs 7387 mn Production Rs 2113 mn
(70% of total metal cutting CAGR 43% CAGR 37%
output)

CNC Conventional
87% of
production
70% of
production
Metal Cutting constitutes bulk of the exports

Exports of Machine Tools (By Operation)

600

500

400
472
463
300
320
200

100
74 75 61
0
2002-03 2003-04 2004-05

Figures in INR mn Metal Forming Metal Cutting

Machine centres, Lathes , Electro discharge machines and HSC

drilling tools together account for ~75% of exports ( in FY 2005 )
Shortage in production capacity has resulted
in rising imports
Consumption Breakup - Machine Tools India
CAGR
100%
10360 43 %
7420
80% 5093

60%

40% 18208 101 %

9655
4507
20%

0%
2002-03 2003-04 2004-05
Figures in INR Mn Imports Domestic Production

The surge in domestic demand, capacity constraints and lowering of import duties have
led to a doubling of imports

The percentage share of imports in total consumption has also risen from 47% in
2002-03 to 64% in 2004-05

* Net duty after MODVAT

 Domestic demand fuelled by growing
end user industries

Domestic market grown at a CAGR of over 11% ( FY 2000 - FY 2005).

Automotive Exports have grown even higher at about 25% CAGR

Auto Domestic market size at USD 8.7 bn and growing at a rate of 15% per
Components annum. Industry estimated to grow at 25% till 2010.

Grown at about 20% in FY 2006. Government’s thrust on infrastructure

Capital Goods development, and growth in core sectors like textile and agriculture are
expected to sustain high growth in this sector

The sector has grown at rate of about 13% in FY 2005. The growing middle
Consumer
class, rising affordably, changing lifestyles have all contributed and continue
Durables
to contribute to this sectors growth pace.
 Indian machine tool industry is most
amenable to investments by foreign players
 100% FDI is allowed

 Machine tools manufacturers are exempt from obtaining an industrial licence to manufacture

 Manufacturers are free to select the location of the project

 Only specific items under machine tools are reserved for production by the small scale industry

 Import duties have been constantly reduced to promote increased import and usage of machine
tools
India enjoys several advantages for the growth
of machine tool industry

 Design Skills

 Lower cost of manufacture

 Availability of raw materials

 Availability of skilled manpower

 Presence of support industries (like foundry)

 Growth in end user industries

Leading players in India

Pioneer in Machine tools business in India

Leading manufacturer of conventional and CNC machines
Revenues of INR 2902 mn

Largest machine tool manufacturer in the Private sector

Collaboration with German Machine Tool manufacturing Company
Manufacturer of CNC horizontal and vertical machining centers, Special
Purpose Machines,

ACE Designers Ltd., is a leading manufacturer of CNC turning centers and

Auto Lathes
Part of the ACE Group of companies that manufactures and exports CNC
machine tools, grinding machines, turrets etc., to Europe and USA
Group Revenues close to INR 2500 mn

Jyoti is a leading CNC machine tool manufacturer from Gujarat

Has recently tied up with French CNC manufacturer Hurron
Graffenstaden SAS to produce Special Purpose CNC machines to be
sold in Europe and other western countries

Batliboi Limited is among the leading engineering and machine tool

manufacturers in India
Machine tool business revenues of INR 400 mn
Leading players in India ……..

Lakshmi Machine Works is a leading engineering and machine tool

manufacturing Company
Produces CNC machine tools
Also has supporting foundry division to manufacture castings
Machine tool revenues close to Rs.1000 mn

Kennametal Kennametal India Limited is the largest cutting tools manufacturer in

India India and is a Subsidiary of Kennametal, Germany
Sales revenues of INR 3631 mn

Other Leading Players are:

Heavy Engineering Corporation; Motor Industries Company Limited; Lokesh Machines Limited
Premier Limited; TAL Manufacturing Solutions Limited; Godrej & Boyce Manufacturing
Company Limited; Mysore Kirloskar Limited;

 Many of the global players like Makino, Mori Seiki, DMG, Yamazaki, Haas, Trumpf, Daewoo,
Agie Charmilles, Schuler , Cummins, Siemens , ABB Ltd etc. are present in India either
through their marketing agents, technical centres, service centres or assembly centres.
The first product developed by Ace designers, Bangalore,
was the Auto Lathe - a multi slide automatic production
turning machine.

Built on the modular concept around the “component to be

machined” and supplied as a complete machining solution
with custom designed work holding and tooling.

This machine became very popular with the auto

components and the two-wheeler industry.

“Today, Ace designers are the largest manufacturer of CNC

Lathes in India” with a market share of over 40%.”
Evolution Of Turning Machines
Turning
Centre

CNC Lathe

NC Lathe

Conventional
Lathe
Evolution of Milling Machines

Machining
Centre

CNC Milling
Machine

Milling M/C
with DRO

Conventional
Milling M/C
CONVENTIONAL MACHINES FEATURES
• Low Spindle Speeds
• Low Feedrates on Axes – Cast Iron Guideways
• Not so rigid Bed construction
• Less No. of Tools – one or two
• Very little or no guarding
• Low coolant flow
Limitations of Conventional Machines
• Low Machining Speeds
• Productivity not consistent
• Quality – Operator dependant
• Low safety working environment
 Advantages of CNC Machine

• High Material Removal Rate

• Productivity output constant – Target can be easily fixed
• Consistent Quality output
• Close accuracies can be maintained
• Process totally De-skilled
• Safe Operation
Features of CNC Machines

• High Spindle Speeds

• High Rapid Rates of Axes
• Movement of Axes thru Ball Screws
• Hardened & Ground Steel Strips for
Guideways
• Anti- Friction lining between mating
surfaces
• Multiple Tool Turret
•Completely enclosed Guarding
• CNC Control System with Servo Drives
 Major user of CNC Machines
AUTOMOTIVE Entire Manufacturing Industry

Engines & Parts

Two Wheelers
Four Wheelers – Cars
Heavy Vehicles Trucks

Engineering
Bearings
Hydraulics
Electrical
Tooling

Capital Equipment
Machinery
Transformers/Generators
Aircraft's
Excerpts from the interview….

Mr. A.V. Sathe, Mr. Shrinivas G. Shirgurkar and Mr. B. Machado

Promotors of ACE DESIGNERS, BANGALORE
What are the factors driving the machine
tool industry?

• The market today is mature and knowledgeable with a

wide choice.

• We have companies from the world over operating in

the Indian markets.

• Surely the customer is getting more demanding on

technology, delivery and pricing.

• The expectation on service, support and buying

experience is also becoming very demanding.
What are the issues that are affecting
the machine tool industry?

• Export is one of the important challenges faced by the

machine tool sector today.

• Industry needs to increase the exports. Strategically we

should focus on engineering value addition possibilities.

• Also there is the challenge of upgrading the technology

levels of the indigenous products
What are the various options ACE have
adopted in order to keep itself in line with latest
technology developments?

• ACE receive technology exposure through visits &

participation at International shows, inputs from our
overseas associates, close interaction with customer
and study of their needs that are presently met by
imports.
How do you account R&D & Product
Innovations in the success of ACE products?

• We have been focusing most of our innovations and

development efforts on simple cost effective products.

• Our group has been the pioneer in making CNC

technology affordable for the small & medium sector.

• We have innovated & developed automation systems

and high tech machines that were displayed at the
recent IMTEX.

• We plough back around 3% of our revenues into

product development.
What are the current developments of ACE in
domestic & overseas markets?

• We have always been pro-active on exports and

currently export to Australia, France, Germany, Italy,
Thailand, and US where we have established
associates, stock machines, spares, have factory trained
service people.

• ACE Micromatic has just set up its first overseas office

in China and we understand the Chinese market.

• Presently exports constitute 6% of our total sales, we

are targeting to increase it to 15% by 2010.
What are the key trends that are driving Indian machine
tool industry & what are prospects for the industry in
near future?

• Indian manufacturing industry has bright prospects , as it has been

happening these last few years there is a lot of global manufacturers
coming into India for global consumption and also the growth in
Indian consumption.

Prospects for the Industry in Future:

• There are also lots of Infrastructure investments that are happening

which will also fuel consumption & feed investments. So the markets
will continue to grow.

• Yes there will be coarse corrections along the way to factor in real
term situations like exchange, demand fluctuations etc. As with any
growing market, the competition will also grow and get fierce.
 Cont..
• In addition to domestic players many international players
will increase their presence become more active and
aggressive.

• The focus will most certainly shift from products

(machines) to packaged solutions including services. So
while there will be exciting growth there is an urgent need
to keep getting better, understand needs, and fulfill them
quickly, affordably.

• In future the need for higher technology machines (3

axes, 4 axes) more accurate machines, automated
machines will become larger and pronounced.
 Bibliography
• www.imta.org
• www.acemicromatic.com
• www.ibef.org
• www.dhir.nic.in