Indian machine tool companies to increase capacity and to usher in innovation is likely to spend around Rs 5,000 crore-6,000 crore in the next five years.
Addressing a press conference at ‘IMTEX Farming and Tooltech 2012' exposition, the IMTMA President, Mr Vikram Sirur, said “Indian machine tool sector has been getting steady orders from Defence, railways, aerospace and automobile sectors in the domestic market. Also in order to cater to the global industries few companies have committed investments to the tune of Rs 5,000 crore-6,000 crore in the next five years.”
The country has been gradually emerging as a global manufacturing hub of tool and machineries and it is estimated that it is soon to join the list of top five global machine tool markets in next five years.
“For this to be achieved, production needs to grow at an average CAGR of 25 per cent to increase market share of over 50 per cent. Hence, it is vital to close technology and product gaps, create new capacities, accelerate technology acquisitions and improve skill levels,” he added.
IMTEX Forming 2012 and Tooltech 2012 being held in Bangalore has attracted participation from 24 countries, over 500 exhibitors, 600 machine tools weighing 1,000 tonnes with a total value of all exhibits to be around Rs 1,000 crore.
Mr Sirur said the fair this year has seen the largest team from China, surpassing German for the first time. Also many companies with a focus on high-end forming technology for sectors such as Defence, automobile, medical engineering and others are taking part.
Second-hand machine imports
Mr Jamshyd N. Godrej, Chairman Exhibitions, IMTMA, said the machine tool industry has sought a level playing field with the machinery exporters into India in its bid to bridge the gap between local production and imports of machinery.
“The domestic forming and tool tech sector had grown to a size of Rs 3,600 crore, recording a growth rate of nearly 30 per cent, while the total machinery and tech tool market size has been at Rs 10,000 crore. We are manufacturing about 30 per cent of the needs of Indian industry and want to increase this to 50 per cent in the next five years,” he added.
For this, we need the Government's support and strength to be competitive against the machinery imports. While most of the forming and tool tech machinery is being imported at zero duty, the Indian players are made to pay taxes in form of duties and local taxes. We need Government help in this regard,” he further added.