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S. Gopal

What is fluid power? How does a fluid power system work? Fluid power is generation and control of energy using pressurised liquid in the form of water or oil (hydraulics) or air (pneumatics) to move machines and their parts. Fluid power is found on most mobile equipment such as airplanes, cars and trucks, construction and agricultural equipment, as well as in the industrial machines on the factory floor. The components that make up fluid power systems serve to move, lift and pickup materials, among other applications.

The fluid power industry

The fluid power industry has traditionally grown in line with the industrial production, due to the underlying trend towards automation and the presence of fluid power products across the spectrum of industrial applications. It is believed that this trend will continue in the next three to four years and reach a global market sale of $ 24 billion from the present level of $ 18 billion.

The industry is typically described as having four segments : Mobile hydraulic, Industrial hydraulic, Pneumatics and Aerospace. Historically the mobile hydraulic segment has been the largest, garnering around 40 per cent of sales. Agriculture, material handling, utility and transport vehicles account for another 30 per cent. Because of differentiation in products from traditional hydraulics and pneumatics, fluid power product for aerospace is categorised separately. The mobile hydraulic segment has historically been the most volatile segment of the industry, growing and declining as much as twice as fast as the industrial hydraulic / pneumatic segments during expansions and downturns.

Global market scenario and growth prospects

Further vertical shake out is expected with acquisition of smaller and niche competitors in M&A activities and consolidation dominating the fluid power industry that is focused on expanding product and geographical breadth. Consolidation is happening because user industries (OEMs) and hydraulic component manufacturers want to reduce suppliers. Consequently fluid power component manufacturers are looking to expand their breadth of products and gain economies of scale to meet this trend.

With market leadership well matured and established in North America and Europe, the focus on geographic expansion has moved to emerging markets in Latin America and Asia, both of which remain highly fragmented. To date, most user industries in India/Asia remain vertically integrated with respect to fluid power products and still hesitant to outsource to foreign companies. As Asia s domestic base continues to grow, thanks to insufficient infrastructure facilities, expansion of fluid power market is expected to accelerate rapidly in this region.

Outlook for component manufacturers

The Government of India's thrust on infrastructure growth coupled with the opening up of the defence sector, are new avenues of growth.

The domestic hydraulic market is currently estimated to be around Rs 1,500 crore which is less than one per cent of global market sale. Since experts in the field of hydraulics predict an accelerated growth in the Asian infrastructure market, Indian fluid power industry is predicted to have a huge growth potential in this region. Global multinationals of fluid power industry are not only consolidating but started setting up joint ventures and subsidiaries in India to tap the rich Indian talent pool of skills in manufacturing and design.

Indian hydraulic component manufacturing is predominantly corporate and organised centered.

They have excellent capability to not only produce high precision components but offer comprehensive and total system solution to the demanding needs of motion control. With the unique advantage of high pressure, energy-efficient/pollution and noise-free technology, the hydraulic component manufacturing industry has exciting opportunities ahead to squarely meet the challenges of `Growing Needs and Emerging Trends', which is the theme of FPES 02.

The Fluid Power Society of India (FPSI) FPSI is a premier professional body founded in 1973. It is headquartered in Bangalore. It enjoys membership of almost all the Indian hydraulic component manufacturers besides leading user industries and research organisations.

It has nearly 350 industrial/ institutional members and 1,700 individual members. It has active chapters in Mumbai, Chennai, Pune, Visakhapatnam and Hyderabad.

The key objectives of FPSI are to periodically capture the progress made world-over in the field of hydraulics and promote and foster the need-to-know each other amongst its members.

It also endeavours to arrange for exchange of experience between Indian and foreign groups by organising mega expositions and seminars, publish technical journals periodically, encourage continuous dissemination of frontier technology breakthroughs in the field of hydraulics to the members and user industries. Realising a strong need to bring manufacturers (both Indian and overseas) and user industries under a common platform, the society has been regularly organising the most popular biennial mega exposition popularly known as FPES.

The exposition comprises three concurrent events viz. exhibition, technical seminar and manufacturers exclusive presentation called `Meet the manufacturer module.This year, FPES 02 is being conducted between January 29 to 31, 2002.

The best known names in hydraulics from US, UK, France, Germany, Italy and Far East along with all leading Indian manufacturers have registered to participate with their latest products. Nearly 30 excellent technical papers have also been scheduled for presentation at the technical seminar.

The author is General Secretary, Fluid Power Society of India

Courtesy: The official magazine of the FPSI.

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