The Hindu Business Line : `India can become hub of machinery manufacturing'

THE German Engineering Federation, known as VDMA, is of the opinion that India has the potential to become a major manufacturing hub for equipment and machinery used in construction, mining and building sectors within the country and for export purposes.

Many German engineering companies are showing interest in setting up a manufacturing base in India.

Some 20 German manufacturers of construction and mining equipment, including Schwing Stetter, Bomag, Krupp, Phonix Yuie and Hamm, have already started producing locally, while others are represented by dealers.

Considering the potential of the future Indian market, more German companies are now contemplating manufacturing units in India either directly or through joint ventures.

Mr Rajesh Nath, VDMA India Office Director, told Business Line that German construction and building material machinery worth about 61 million euros was exported to India in 2002, registering an increase of 11.8 per cent compared to the previous year.

VDMA is confident that India's economic upward trend will continue and that the world economy will turn the corner.

Moreover, India continues to be an attractive market also for the mining machinery manufacturers with current coal production of about 325 million tonnes (mt), projected to be increased to about 430 mt in the next few years.

In addition, a real boom market for mining technology had recently developed in China, facilitating German manufacturers to raise their exports by about 400 per cent between August 2001 and August 2002. Therefore, Mr Nath said, India could be an ideal outsourcing destination for German manufacturers for Chinese as well as Australian markets.

Incidentally, VDMA has information that a total of 15 nations will spend nearly $4 trillion on construction in 2004.

Countries in West and East Europe and the CIS States are considered to be markets with future potential for the construction equipment and building material machinery industry.

In a given scenario, VDMA has decided to provide conceptual support to the Munich International Trade Fair authority to organise one of the world's largest mining exhibitions in Munich, March 29 to April 4.

The exhibition, known as `Bauma + Bauma Mining 2004', will have 2,400 exhibitors from 42 countries.

The fair authority has targeted four lakh visitors from 157 countries, thereby making the event the world largest exhibition for mining machinery and construction equipment.