EMO Hannover 2013 discusses India as a high-growth market.

23 July 2013

EMO Hannover 2013 discusses India as a high-growth market.

India needs machine tools worth more than 2 billion Euros a year, and imports most of them. In the past five years alone, machine tool consumption has risen by almost 25 per cent. The potential for further growth remains high in the medium term. “There are many good reasons for the VDW to turn the spotlight on the Indian market at the EMO Hannover”, says Martin Kapp, President of the VDW (German Machine Tool Builders’ Association), Frankfurt am Main. On 18 September 2013, the VDW is organising the “EMO Focus on India” event, entitled “Strategic involvement of numerous major users, exploitation of potentials still restricted by structural deficits”. The empirically based half-day seminar is designed to inform international visitors to the EMO from the machinery and plant engineering sector, plus exhibitors who want to expand their operations in India, on the idiosyncrasies of this market..
Massive investment from automakers and aircraft manufacturers The Indian government has to modernise its energy generating plants and ensure massive expansion of the road and railway networks if it wants to achieve its ambitious growth targets of 5 per cent and more in the years ahead. Against this background, prominent international machine tool users are investing on the subcontinent for appropriate strategic positioning. The giant automaker Daimler, for example, is massively upsizing its production facility in Chennai, with the aim of manufacturing sturdy, affordable models for the Indian market. In the aircraft component supplier industry, India itself possesses some highly competent vendors like Tata, Hinduja and HAL, who manufacture components for the aircraft’s interior and operate in what is called the MRO (Maintenance, Repair & Overhaul) category, and are entrusted with non-strategic development projects. By 2028, the market volume for the MRO category alone in Asia/Pacific, China and India is predicted to exceed the figure for North America.
The major users of machine tools in India will be increasing their capital expenditure on machinery in 2013/2014 by an average of more than 16 and 19 per cent respectively. This means rises of 4 and 10 per cent respectively in machine tool consumption in the same period. “International machine tool manufacturers will be well advised not to neglect India”, says Martin Kapp. “If the China boom runs out of steam one day, India may become much more important. And then it will be pay-off time for those who’ve been consistently showing the flag”, he adds.
It is here that the EMO Focus on India comes in. Highly qualified pundits will be dealing with specific features of the Indian market and the growth emphases being targeted by the principal user industries. Hands-on specialists from the machine tool industry and the already-well-established metrological sector will be explaining their concepts for doing business in India. Finally, experts will be elucidating legal idiosyncrasies and financing options.

For more information contact Mrs Silke Becker:

Corneliusstrasse 4
D-60325 Frankfurt am Main / Germany
Tel +49 69 756081-33
Fax +49 69 756081-11
Email s.becker@vdw.de