India a Machine Market - PMMAIPage 6 General Assembly - Venice 2015, 11th September Indian Prime Minister Mr. Narendra Modi’s 'Make in India' campaign Summary » An increase in the

India a Machine Market

Venice,11th September 2015

Page 2

Content

General Assembly - Venice 2015, 11th September

» Political and Economic Scenario

» Plastics and Rubber Machines in India

» Fit enough, good enough?

» Plastics exhibitions in India

» VDMA India

Page 3

Political and Economical Scenario


Page 4 General Assembly - Venice 2015, 11th September

» After 30 years – single party majority

» Slogan – “Ache Din” – Better days ahead

» Absolute Majority in Lok Sabha (lower house); Minority in Rajya Sabha (upper house)

» Maximum governance, Minimum government

» Ease of Doing Business

» Cooperative Federalism

Political Scenario

Page 7

Present Economical Scenario

0

1

2

3

4

5

6

7

8

9

Fiscal Deficit as% of GDP

CurrentAccount Deficit

as % of GDP

Inflation- CPI(% Yr end)

Inflation-WPI(% Yr end)

GDP Growth %Yr

2013

2014

2015

2016 (est)



Indian Prime Minister Mr. Narendra Modi’s 'Make in India' campaign Summary

» An increase in the share of manufacturing in the country’s Gross Domestic

Product from 16% to 25% by 2022.

» To create 100 million additional jobs by 2022 in manufacturing sector.

» To develop 100 smart cities in India by 2020.

» Skill India’s aim is to provide training & skill development to 500 million

youngsters by 2020.

» A new ‘National Industrial Corridor Development Authority’ is being created

to coordinate, integrate, monitor and supervise development of all Industrial Corridors.

Make in India Campaign

Page 7

Plastics and Rubber Machines in India


Page 8

Pune

Mumbai

Pithampur

NCR

Sanand

Chennai Hosur

Bangalore

Hyderabad

Ahmedabad

Vadodara

Packaging

Medical/Pharma

Automotive

Pune

Mumbai

Rajkot

Ahmedabad

NCR

Bangalore

Kanpur

Aurangabad

Chennai

Consumer goods/household goods

Construction (Pipe)

Source: BDB analysis

Key clusters for plastic processing sectors : packaging, medical and automotive

Key clusters for plastic processing sectors : Construction (Pipe) and consumer /household goods

Kolkata

Key Clusters Of Plastic Processing Sectors In India


Page 9

Deliveries to India

Core Machinery


0

5000

10000

15000

20000

25000

0

100

200

300

400

500

600

700

800

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Worldexports Total EUROMAP Total

Worldexports P&R EUROMAP P&Rmill. € mill. €

Page 10

Exports from India

Core Machinery


50

100

150

200

250

2.500

5.000

7.500

10.000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Total Machine Exports Plastics and Rubber Machinery

mill. €

mill. €

Page 11

EUROMAP Deliveries to India

Core Machinery


10

20

30

40

50

60

0

100

200

300

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EUROMAP Total Injection Moulding Machines

Extrusion Machines Blow Moulding Machines

mill. € mill. €

Page 12

China Deliveries to India

Core Machinery


5

10

15

20

25

30

35

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Injection Moulding Machines Extrusion Machines

Blow Moulding Machines

mill. €

Page 13

German Deliveries to India

Core Machinery


5

10

15

20

25

30

35

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



mill. €

Page 14

Italian Deliveries to India

Core Machinery


3

5

8

10

13

15

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



mill. €

Page 15

Is Fit enough, good enough?


Page 16

Customers Perception On Technology Vs Price

Technology preference

Pri

ce s

ensi

tive

Low Medium High

Low

Medium

High

Packaging – MSME companies

Packaging – Large companies

Auto Components – Large companies

Auto components – MSME companies

Building / Construction – MSME companies

Building / Construction – Large companies

Medical – Large companies

Medical – MSME companies

Other household – MSME companies

White & brown goods – Large companies

Customers preference level towards high end technology

Cus

tom

ers

pref

eren

ce le

vel t

owar

ds lo

w p

riced

mac

hine

s

Indian MSME customers across all

application sectors are still

considering the price as a key

factor while selecting a brand due

to their low purchasing power

However, in sectors like auto

components and packaging,

customers are going for used

machines from major brands to

meet their technical requirements

at low cost

Source: BDB analysis

MSME – Micro, Small & Medium Enterprises

‘just fit’ technology

high -sophisticated machines on

premium level



Fit enough is good enough? » Increasing volume and precision generates demand for high class

machines.

» It reduces energy consumption.

» Adherence to the delivery commitment with reduced production time with higher tolerance.

» It ensures zero wastage in operation.

» It helps in process consistency thus improving the quality output.

» Shift in preference from commodity injection moulding to performance injection moulding are noticed.

» New technology machines with proven reliability are finding preference.

» MSME customers consider price over technology irrespective of any sector

» Large customers from auto component, medical and packaging sector prefer technology over price.

» India niche market – Limited Volume

Page 18

Plastics exhibitions in India - a close call!


Major Exhibitions In India For Plastic Processing Machinery

PLASTINDIA is one of the largest pure plastics exhibitions on the global plastics scene: 2000 Exhibitors. Participation of 40 Countries with

1,50,000 Business Visitors Held every 3 years Mounted and spread across

1,25,000 sq. mtrs area

PLASTIVISION INDIA is the 2nd Largest Plastics Exhibition in India : 1500 Exhibitors. Participation of 25+ Countries

with 1,25,000 Business Visitors Live Demonstration of

Machines for Moulds, Printing & Packaging Products.

Emerged as one of the top 10 global Plastics Exhibition.

Mounted and spread across 90,000+ sq. mtrs area.

Page 19

4,6 4,2

4,7 4,4

PLASTINDIA PLASTIVISION

Suppliers Plastic Processors

Perception on major exhibition

PLASTINDIA is considered as the key exhibition for the plastic processing machinery in India

Plastic processors are perceiving that PLASTINDIA is the key source for information on the new technology and the products

Apart from the Indian suppliers, the MNC suppliers are also using these exhibitions as a platform to reach out their customers in Indian market

Satisfaction scale: 1= Highly dissatisfied; 5 = Highly satisfied


Page 20

Conclusion => India back on track!


Page 21

VDMA India


Page 22

Rajesh Nath, Managing Director VDMA India Head Office GC-34, Sector-III, Salt Lake City Kolkata Telephone +91 33 3219522 E-Mail [email protected]


Sumit Sharma, Regional Manager VDMA Noth India Office C-25, Sector-61 Noida Telephone +91 120 4255029 E-Mail [email protected]

Jamly John, Regional Manager VDMA West India Office 102, Jaimitra, Pragati Nagar, M. G. Road No. 6 Mumbai Telephone +91 981 9045109 E-Mail [email protected]

VDMA India Contacts


Thank you for Your Attention

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India a Machine Market - PMMAIPage 6 General Assembly - Venice 2015, 11th September Indian Prime Minister Mr. Narendra Modi’s 'Make in India' campaign Summary » An increase in the