1. TECHNOLOGICAL PRODUCT
MARKETING
Presented By
A.Sampath Kumar – 06MB02
S.Veeravel – 06MB27
S.Gopalakrishnan – 06MB06
R.Sujatha – 06MB26
U.Suja-06MB25
S.Srinivasan – 06MB24
T.Venkatachalam – 06MB29

3. Where do we encounter in technologies in everyday life?
Technologies are everywhere – Yet not always visible

4. What will be there longest has to be carefully planned!
(Years)

5. Indian Machine Tools Industry

6. The current Indian Machine Tools sector is very Small
in comparison to the global market size
Global Machine Tools Market
 Total world market size; USD 65.3 bn
 World leader Japan has USD 10.5 bn has 16% market share
 China leads consumption with US $ 9.3 bn in 2004 ( 20% of world wide
production). It imported US $ 5.8bn ( 62%)
Indian Machine Tools Industry
• Domestic Market Size : USD 620 mn ( consumption)
• Ranks 19th in overall world machine tools production
• Contributes 0.5% to overall world production
• Exports : USD 11 mn
• Exports mainly to developed countries

7. Manufacturers are geographically dispersed
• Top 10 producers account for 70% of the output in India
• Around 70% of the players are in the small & medium scale sector
• Hubs of manufacturing centres located near the raw material industry
or user industries
Machine Tool hubs in India
• Mumbai and Pune in Maharashtra;
• Batala, Jullunder and Ludhiana in Punjab;
• Ahmedabad, Baroda, Rajkot Jamnagar, and Surendranagar in
Gujarat;
• Coimbatore and Chennai in Tamil Nadu;
• Bangalore in Karnataka.

8. Production has grown at a high rate during
the period 2002 to 2006
CNC Conventional
Metal
Forming
Metal
Cutting
Production Rs 528 mn
CAGR 47%
Production Rs 860 mn
CAGR 30%
Production Rs 7387 mn
CAGR 43%
Production Rs 2113 mn
CAGR 37%
70% of
production
87% of
production
bending machines,
presses, cold-heading
machines,, shears, coil
slitters, and stamping
machines
Turning centres,
Machining centres,
grinding centres
(70% of total metal
cutting output)

9. 74
320
75
472
61
463
0
100
200
300
400
500
600
2002-03 2003-04 2004-05
Exports of Machine Tools (By Operation)
Metal Forming Metal Cutting
Metal Cutting constitutes bulk of the exports
Machine centres, Lathes , Electro discharge machines and HSC
drilling tools together account for ~75% of exports ( in FY 2005 )
Figures in INR mn

10. Shortage in production capacity has resulted
in rising imports
4507
5093
9655
7420
18208
10360
0%
20%
40%
60%
80%
100%
2002-03 2003-04 2004-05
Consumption Breakup - Machine Tools India
Imports Domestic Production
101 %
43 %
CAGR
The surge in domestic demand, capacity constraints and lowering of import duties have led
to a doubling of imports
The percentage share of imports in total consumption has also risen from 47% in
2002-03 to 64% in 2004-05
Figures in INR Mn
* Net duty after MODVAT

11. Domestic demand fuelled by growing
end user industries
Domestic market grown at a CAGR of over 11% ( FY 2000 - FY 2005).
Exports have grown even higher at about 25% CAGR
Grown at about 20% in FY 2006. Government’s thrust on infrastructure
development, and growth in core sectors like textile and agriculture are
expected to sustain high growth in this sector
The sector has grown at rate of about 13% in FY 2005. The growing middle
class, rising affordably, changing lifestyles have all contributed and continue
to contribute to this sectors growth pace.
Domestic market size at USD 8.7 bn and growing at a rate of 15% per
annum. Industry estimated to grow at 25% till 2010.
Auto
Components
Capital Goods
Consumer
Durables
Automotive

12. Indian machine tool industry is most
amenable to investments by foreign players
 100% FDI is allowed
 Machine tools manufacturers are exempt from obtaining an industrial licence to manufacture
 Manufacturers are free to select the location of the project
 Only specific items under machine tools are reserved for production by the small scale industry
 Import duties have been constantly reduced to promote increased import and usage of machine
tools

13. India enjoys several advantages for the growth
of machine tool industry
 Design Skills
 Lower cost of manufacture
 Availability of raw materials
 Availability of skilled manpower
 Presence of support industries (like foundry)
 Growth in end user industries

14. Leading players in India
Pioneer in Machine tools business in India
Leading manufacturer of conventional and CNC machines
Revenues of INR 2902 mn
Largest machine tool manufacturer in the Private sector
Collaboration with German Machine Tool manufacturing Company
Manufacturer of CNC horizontal and vertical machining centers, Special
Purpose Machines,
ACE Designers Ltd., is a leading manufacturer of CNC turning centers and Auto
Lathes
Part of the ACE Group of companies that manufactures and exports CNC
machine tools, grinding machines, turrets etc., to Europe and USA
Group Revenues close to INR 2500 mn
Jyoti is a leading CNC machine tool manufacturer from Gujarat
Has recently tied up with French CNC manufacturer Hurron
Graffenstaden SAS to produce Special Purpose CNC machines to be
sold in Europe and other western countries
Batliboi Limited is among the leading engineering and machine tool
manufacturers in India
Machine tool business revenues of INR 400 mn

15. Leading players in India ……..
Kennametal
India
Lakshmi Machine Works is a leading engineering and machine tool
manufacturing Company
Produces CNC machine tools
Also has supporting foundry division to manufacture castings
Machine tool revenues close to Rs.1000 mn
Kennametal India Limited is the largest cutting tools manufacturer in
India and is a Subsidiary of Kennametal, Germany
Sales revenues of INR 3631 mn
Other Leading Players are:
Heavy Engineering Corporation; Motor Industries Company Limited; Lokesh Machines Limited
Premier Limited; TAL Manufacturing Solutions Limited; Godrej & Boyce Manufacturing
Company Limited; Mysore Kirloskar Limited;
 Many of the global players like Makino, Mori Seiki, DMG, Yamazaki, Haas, Trumpf, Daewoo,
Agie Charmilles, Schuler , Cummins, Siemens , ABB Ltd etc. are present in India either
through their marketing agents, technical centres, service centres or assembly centres.

16. The first product developed by Ace designers, Bangalore,
was the Auto Lathe - a multi slide automatic production
turning machine.
Built on the modular concept around the “component to be
machined” and supplied as a complete machining solution
with custom designed work holding and tooling.
This machine became very popular with the auto
components and the two-wheeler industry.
“Today, Ace designers are the largest manufacturer of CNC
Lathes in India” with a market share of over 40%.”

17. Conventional
Lathe
NC Lathe
CNC Lathe
Turning
Centre
Evolution Of Turning Machines

18. Conventional
Milling M/C
Milling M/C
with DRO
CNC Milling
Machine
Machining
Centre
Evolution of Milling Machines

19. CONVENTIONAL MACHINES FEATURES
• Low Spindle Speeds
• Low Feedrates on Axes – Cast Iron Guideways
• Not so rigid Bed construction
• Less No. of Tools – one or two
• Very little or no guarding
• Low coolant flow

20. Limitations of Conventional Machines
• Low Machining Speeds
• Productivity not consistent
• Quality – Operator dependant
• Low safety working environment

21. Advantages of CNC Machine
• High Material Removal Rate
• Productivity output constant – Target can be easily fixed
• Consistent Quality output
• Close accuracies can be maintained
• Process totally De-skilled
• Safe Operation

22. Features of CNC Machines
• High Spindle Speeds
• High Rapid Rates of Axes
• Movement of Axes thru Ball Screws
• Hardened & Ground Steel Strips for
Guideways
• Anti- Friction lining between mating
surfaces
• Multiple Tool Turret
•Completely enclosed Guarding
• CNC Control System with Servo Drives

23. Major user of CNC Machines
Entire Manufacturing Industry
AUTOMOTIVE
Engines & Parts
Two Wheelers
Four Wheelers – Cars
Heavy Vehicles Trucks
Engineering
Bearings
Hydraulics
Electrical
Tooling
Capital Equipment
Machinery
Transformers/Generators

24. Excerpts from the interview….
Mr. A.V. Sathe, Mr. Shrinivas G. Shirgurkar and Mr. B. Machado
Promotors of ACE DESIGNERS, BANGALORE

25. What are the factors driving the machine
tool industry?
• The market today is mature and knowledgeable with a
wide choice.
• We have companies from the world over operating in
the Indian markets.
• Surely the customer is getting more demanding on
technology, delivery and pricing.
• The expectation on service, support and buying
experience is also becoming very demanding.

26. What are the issues that are affecting
the machine tool industry?
• Export is one of the important challenges faced by the
machine tool sector today.
• Industry needs to increase the exports. Strategically we
should focus on engineering value addition possibilities.
• Also there is the challenge of upgrading the technology
levels of the indigenous products

27. What are the various options ACE have
adopted in order to keep itself in line with latest
technology developments?
• ACE receive technology exposure through visits &
participation at International shows, inputs from our
overseas associates, close interaction with customer
and study of their needs that are presently met by
imports.

28. How do you account R&D & Product
Innovations in the success of ACE products?
• We have been focusing most of our innovations and
development efforts on simple cost effective products.
• Our group has been the pioneer in making CNC
technology affordable for the small & medium sector.
• We have innovated & developed automation systems
and high tech machines that were displayed at the
recent IMTEX.
• We plough back around 3% of our revenues into
product development.

29. What are the current developments of ACE in
domestic & overseas markets?
• We have always been pro-active on exports and
currently export to Australia, France, Germany, Italy,
Thailand, and US where we have established
associates, stock machines, spares, have factory trained
service people.
• ACE Micromatic has just set up its first overseas office
in China and we understand the Chinese market.
• Presently exports constitute 6% of our total sales, we
are targeting to increase it to 15% by 2010.

30. What are the key trends that are driving Indian machine
tool industry & what are prospects for the industry in
near future?
• Indian manufacturing industry has bright prospects , as it has been
happening these last few years there is a lot of global manufacturers
coming into India for global consumption and also the growth in
Indian consumption.
Prospects for the Industry in Future:
• There are also lots of Infrastructure investments that are happening
which will also fuel consumption & feed investments. So the markets
will continue to grow.
• Yes there will be coarse corrections along the way to factor in real
term situations like exchange, demand fluctuations etc. As with any
growing market, the competition will also grow and get fierce.

31. Cont..
• In addition to domestic players many international
players will increase their presence become more active
and aggressive.
• The focus will most certainly shift from products
(machines) to packaged solutions including services. So
while there will be exciting growth there is an urgent
need to keep getting better, understand needs, and fulfill
them quickly, affordably.
• In future the need for higher technology machines (3
axes, 4 axes) more accurate machines, automated
machines will become larger and pronounced.

32. Bibliography
• www.imta.org
• www.acemicromatic.com
• www.ibef.org
• www.dhir.nic.in