India is stepping in to a new phase in manufacturing. It has benchmarked for itself a much higher growth than the current one over the next few years. There is a vision for manufacturing — of achieving 25% share in overall GDP by the year 2025 with concerted focus on technology and depth value addition, and to generate for the country a hundred million manufacturing jobs.
Ever since the first 'Vision' conference in 1995, India's machine tool industry has assiduously worked on enriching its products – through better productivity, quality, design, product development and aesthetics. There is a need to reinvigorate focus on how to realise the BIG picture. This include achieving 50 % domestic market share and leapfrogging into the larger orbit of becoming a significant global player — from world's seventh to the third largest machine tool market and from thirteenth to the fifth machine tool producing nation.
“VISION 2020” : 15th CONCLAVE FOR CEOS & “UDAAN” MEMBERS
OF THE INDIAN MACHINE TOOL INDUSTRY
“Navigating Uncharted Path for Accelerated Growth”
The world is looking at India with lot of anticipation as epicentre of growth. With growth in aerospace industry, opening up of defence sector for private enterprises and huge scope for infrastructure Development; there are all the key factors for a grand take-off.
Future automotive sector growth may largely come through Electric Vehicles (EVs), changes towards “light-weighting” and use of composites where some of the metal-cutting applications may get replaced by metal-forming and some metal-forming applications may get replaced by composite-forming. Development and proliferation of additive manufacturing may present opportunities as well as threats to machine tool industry.
Need to revisit ‘VISION’
These formed the key elements for intensive discussions, spread over two-and-a-half days at ‘VISION 2020’ – the 15th Conclave for CEOs and “UDAAN” members of the Indian Machine Tool Industry. The focus centred around on “Navigating Uncharted Path for Accelerated Growth” – that has been taken as theme of the Conclave.
15th ‘VISION 2020’ Conclave :
The agendas were :
To have inputs on E-Mobility, Additive Manufacturing and Industry 4.0
Inputs on growth potential in uncharted sector such as Health Care and Services
Inspiring talk on what Innovation can achieve
Review of the scorecard, revisiting the Vision and evolving new action points
Inputs on Support and Incentives available from Government
Critical analysis of status quo and where it could lead; to bring out urgency of actions
Organised by “UDAAN” under the aegis of Indian Machine Tool Manufacturers’ Association (IMTMA), ‘VISION 2020’ was scheduled from 07 to 09 December 2017 at the secluded and serene “Madhubhan Resort” in Vallabh Vidhya Nagar, Gujarat.
Session on “Current Score Card – Where are we in respect to Vision 2020”
Cyclic Boom and Bust is seen in Machine Tool Industry with reduction of cycle time from 10 to 5 years but the swing has become larger with global CAGR of 4.1%
If demand grows at 4.1 % and if imports could be reduced by 5.1% it looks possible to have CAGR of 9.2
With CAGR of 10.7 % it could be possible to reach 9th Rank by 2022
With CAGR of 30% only it could be possible to reach 8th Rank by 2022
Indian Machine tool industry continues to have lesser technical focus, lesser Industry-Institute synergy, tendency to be followers rather than leaders and suffer from poor international visibility and brand recognition.
Theme Session on “Opportunities in a New India”
While Automotive, Auto parts, Die & Mould, Aerospace, General Engineering , Consumer Goods and Railways have been the conventional sectors where up to 84% of Machine Tools are sold; there are new segments emerging such as Cell Phones, Medical Equipment, Metro, Defence and Energy – which open up new opportunities.
Global Market for Medical & Healthcare sector is 200 Billion USD; of which Indian Market is about 10 Billion USD – and it is expected to grow to 25 Billion USD by 2025 with 800 plus manufacturers and CAGR of 15.8% and it has already been allowed to have 100% FDI.
Presently, 70% of domestic demand is met through imports.
Manufacture of these items would require machining of Sterile Plastics, stainless steel and Titanium; plastic moulding, 3D Printing and sheet metal / composite forming.
Session on “Evolution of EV Technologies in the Indian Horizon”
In EVs there will be fewer conventional components because of no engine and much simpler drive train; however there will be motor, power electronics and modified drive train. On the whole number of components will go up possibly with increased use of composites.
Battery will comprise 40-60% of vehicle cost and the cost is coming down significantly. In 2010 cost of 1KWH was 1000USD which is likely to become 60USD by 2025. It is expected that IC engine cost will come at par by 2020.
Machine tool industry must diversify into non-automotive and non-metal machining areas. Additive manufacturing may have increased role in EVs.
Session on “Going Global – Dominancy through Exports”
In global machine tool market there are peculiar ways of operating machine tool business and even machine tool architecture – there is a premium technology European way; a distinct optimised Japanese way; a mixed Korean way; and ultra-low cost Taiwanese way. There is need to discover the Indian way which becomes USP for “Made in India ” in various global markets.
Session on “Essentials of Smart Machines”
Seven guidelines for what Industry 4.0 implementation ought to address –
Focus stays on “People”
Use of “Open Source” Software , Standards and Utilities
Integration of Value Creation Networks
Digital Life Cycle Management
Virtual Real Time representations
Session on “Driving Growth through Innovation”
Innovation is about translating Knowledge into Money by putting R&D to Commercially Viable Value Creation; while R&D is about converting Money into Knowledge. Basic Research is low on Process Efficiency Impact and Market Impact; Breakthrough Innovation is high on Process Efficiency Impact but low in Market Impact; Disruptive innovation is high on Market Impact but low on Process Efficiency Impact; Sustaining Innovation is both hi on Process Efficiency Impact as well as high on Market Reach. Therefore Sustaining Innovation is the best policy.
Session on “Impact of Additive Manufacturing on Capital Goods”
Typically parts made through additive route are :
5 times more durable in terms of life
It is possible to reduce inventory by 95% as parts could be made as required
They are 30% more Cost Efficient
It is possible to produce near net shape
Special Session on “Future, Future ... Here I come”
“Millennials” is a term used for persons born between year 1980 to 2000. By 2030 the number of millennials among working population would be 200 million and they would comprise 75% of the total workforce. There is likely to by 69% rise in Female Workforce.
Industry would have to gear up and change in order to accommodate certain special characteristics of millennials –
They are the future; passionate; self-assured; have “can-do” approach; and comfortable working in groups / teams; as also networking.
They look good to take the reins; look for structure; look for guidance.
They can do multitasking.
They value work-life balance, and may prefer working from home.
They prefer employee-centric workplace.
They prefer flexi-hours, flexi-roles, and even flexi-business.