India is the 4th highest steel manufacturer at present globally, with the booming manufacturing capacity exceptionally well. That implies straight that every industry, which shares close to remote bonding with industry, is going to avail certain advantages. Having said that, there is one more aspect we should consider regarding the future of the metal forming segment in India—‘Make in India’ initiative. The emphasise of the said campaign is going to be the enhancement in the ecosystem of small to medium scale industries that also includes innumerable segments and sub-segments of the metal forming industry, and by executing so, to bring about a holistic growth at the bottom of the pyramid. Thus, by making the foundation firm, gradually, the entire segment would get sustainable from the core.
After many decades of rise and fall, the metal forming industry, slowly but steadily, is marching forward towards the consistent momentum. This signifies that metal forming segment in India is about to witness the bright future.
At present, the Indian auto component industry is making marvel for us. It indicated a CAGR of 11% whilst India is going to become 4th largest automobile manufacturer by 2020. Alongside, the automobile sector is also rising exponentially with a 7.1% contribution in GDP. When it comes to electrical machinery, its exports have grown to a remarkable CAGR of 14.8% during the last eight years. Apart from that, construction industry is bringing the 2nd highest inflow of FDI and is simultaneously enhancing the infrastructure as they are interlinked. The cities across the country are showing a clear infrastructural growth and the growth will continue as the government is looking forward to take it to the next level.
These are the few of demand driving sectors, which are going to bring incredible time across the sectors. Since metal forming industry shares an intrinsic bond amongst all those industry, one way or another, the progress in those industries is surely going to bring significant impact over metal forming industry.
The philosophy behind the ‘Make in India’ is to bring forth tremendous development to those fundamental industries, which provide ground level goods and materials in order to proceed further. Since metal forming industry shares the same attributes, the campaign is going to bring brilliant opportunities for this sector. It is been projected that by the end of 2017, the infrastructure sector is about to get an investment up to USD 1 trillion in which 45% of investment will be channelised into construction sector.
The Government is intensively planning huge projects to enhance the infrastructure in tier-2 cities and this development just cannot be undertaken without involvement of metal forming industry. Along with that, heavy machinery as well as equipment manufacturing industries has initiated the reformation with collaborative efforts of private sectors and governments. Speaking of electronics, ‘Power to all’ initiative of government is looking forward to provide power to all over India by the year 2019. The current emphasis of numerous industries is shifting towards capacity enhancements, as government is incentivising capacity building. The government has announced to support the direct exports to the neighbour countries. So, ‘Make in India’ indicates opportunities in abundance. Having known the opportunities, it also becomes necessary to learn about challenges.
Though the industry is growing, there is a clear instability in the demands and on observing closely, we can find out that there are only a few growth drivers and majority of the sub-segments are under performer. The fall back in making capabilities enhancement has been hindering the productivity and largely, the performance.
Lasers enhancing manufacturing capabilities
The acceptance of latest and advanced equipment, which potentially push the productivity to the next level is not on a very higher note. To put it straight, the laser technology is one such machine that posses the features to enhance the manufacturing by multi-folds in numbers along with vastly improved quality without much of errors. It seems quite promising; however, the issue with the technology is lack of knowledge and manufacturers’ perception regarding the Indian technology. The awareness about the laser technology is yet to find its way to all those concerned entities.
Thus, the production cost of the laser machines is very high at the moment, consequently, the pricing also goes higher and that is a crucial point to make many of prospect turn down the buying decision. To tackle those issues, the laser technology requires appropriate awareness amongst target audience. Next, after the systematic education regarding its usability and its advantage must be employed. Investment in capacity enhancement is the need of the moment; hence, micro financing scheme should be made available at competitive rate of interest.
Transforming metal forming industry
Today, the Government envisions the 12% to 14% of annual growth of the manufacturing sector. To ensure the sustainability the government’s spotlight will be the advancement in consistent production capabilities. Whilst gaining the competitive edge across the industry is also another vision. To bring consistency and advancement, the GOI is planning to take measures to boost technological aspect to the depth across all the sectors. That’s what will bring the favourable conditions for metal forming industries. The government made the announcement of five industrial corridors across the various vital cities of the countries, and as a matter of fact, one project is said to be supported by the Japanese government. So that is something, which will stream the flow of opportunities magnificently to the metal forming sectors.
There are the tools and machinery, which are required to perform metal forming process and laser technology have tremendously emerged as one of the most efficient alternative machines. If we would consider the time span since its existence, it’s been around since more than two decades. However, due to lack of awareness and availability, the use of the machine was not at par to the other alternatives. Eventually, the new and more accurate sources are being discovered and amongst which the fibre laser has change the way metals used to get processed upside down. The highly capable systems set the metal forming industry on the trail of transformation and enable it to work with best accuracy and superior speed.