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HEAVY ENGINEERING
Heavy Engineering: Global Scenario
Heavy Engineering: Indian Scenario
Heavy Engineering: Tamil Nadu Scenario
Investment Opportunities
AGENDA
Heavy Engineering: Global Scenario Multifaceted heavy engineering sector is experiencing strong demand from emerging economies of Asia Pacific Machinery sector market is gradually shifting to Asia Pacific region
Currently Asia-Pacific and Europe together account for more than 70% of the global electrical machinery market, where Asia-Pacific’s share is 45%.
Americas
42%
Asia Pacific
30%
Europe 28% Middle
East & Africa
0%
2007
Americas
37%
Asia Pacific
35%
Europe 26%
Middle East & Africa
2%
2011
The Global electricity consumption is in the range of 18,000TWh and will reach a level of 29,000 TWh by 2030. Asia-Pacific will drive electrical machinery by contributing 50% to electricity consumption by 2030.
6,799
12,643 16,428
20,381
28,929
1980 2000 2007 2015 2030
TWh
Global Electricity Consumption, TWh (1980-2030)
Americas Europe/Eurasia Asia Pacific
Globally heavy engineering exports, both in the sectors of machinery and electrical machinery, are led by China, Germany, USA, Japan.
Global Exports In Heavy Engineering Sector
48% 8% 12% 11% 10% 6% 3% 3%
48% 14% 13% 8% 7% 5% 3% 2%
43% 18% 12% 9% 7% 5% 4% 2%
0%
100%
RoW China Germany USA Japan Hong Kong Korea Singapore
Global electrical machinery exports, 2003-2012
2003 2008 2012
43% 8% 13% 12% 9% 6% 5% 4%
41% 14% 14% 11% 8% 6% 4% 4%
40% 18% 12% 10% 8% 5% 3% 3%
0%
50%
RoW China Germany USA Japan Italy UK France
Global machinery exports, 2003-2012
2003 2008 2012
Heavy Engineering Indian Scenario
Heavy electrical machinery output has grown from $ 10.8 billion in 2008-09 to $ 15.28 billion in 2011-12 and registered a CAGR of 12%
Special purpose machinery has registered high growth at a CAGR of 16% and has grown from $13.19 billion in 2008-09 to $20.42 billion in 2011-12.
General purpose machinery is the largest segment in terms of volumes of output. It has grown from $15.16 billion in 2008-
09 to $21.66 billion in 2011-12 at a CAGR of 13%.
10.80
14.50 14.50 15.28
2008-09 2009-10 2010-11 2011-12
Heavyelectrical Machinery, USD Billion
15.17 16.02
20.29 21.66
13.20 12.29
16.74 20.43
2008-09 2009-10 2010-11 2011-12
Heavy Machinery output, USD Billion
General Purpose Machinery Special Purpose Machinery
Heavy electrical machinery sector is projected to grow at an average CAGR of 17% for the next 10 years
6.7
11.1
8.2
5.7
0.5
3.3
5.9
4.4
3.0
0.2
0.6
2.7
2.0
1.4
0.1
- 5.0 10.0 15.0
Generator
Transformers
Switchgear
RotatingMachines
Capacitors
Demand projections for electric motors, generators, transformers, etc., USD bn
FY 11 FY 17FY 22
16%
14%
14%
14%
25%
CAGR
All the key segments of General purpose machinery sector are projected to grow at strong growth rates till 2017
15%
17%
17%
55%
15%
33%
Engines and turbines,except aircraft, vehicle…
Bearings, gears, gearingand driving elements
Lifting and handlingequipment
General purpose machinery output forecast, CAGR
2008-11 2011-17
High growth trajectory sub-segments of special purpose machinery sector are expected to sustain strong growth momentum in the next five years
18%
29%
23%
21%
0% 10% 20% 30%
Agricultural and forestrymachinery
Machinery for mining,quarrying andconstruction
Special Purpose machinery output forecast, CAGR
2008-11 2011-17
Export Scenario of Heavy Machinery in India
3,278
3,174
526
Electric motors,generators,
tranformers, etc
Heavy electrical machinery exports, USD million
2003 2008 2012
• Share of electric motors, generators and transformers in overall electrical equipment product basket increased from 62% in 2003 to 76% in 2008 and then reduced to 72% in 2012.
• Exports growth in this segment nominal due to huge demand potential in the domestic market during the last five years.
Heavy Engineering Tamil Nadu
Heavy Engineering Tamil Nadu
Tamil Nadu secures 2nd position in general purpose and special purpose machinery with 18% and 11% contribution to total India’s output respectively. The State is also 5th in terms of heavy electrical machinery sector contribution to total India’s output of this segment with 6% share.
1770
4389
3241
3833
1383 1217 1655
2282
2008-09 2009-10 2010-11 2011-12
Heavy Machinery in Tamil Nadu in USD million
General Purpose machinery Special Purpose Machinery
409
920
1524
962
2008-09 2009-10 2010-11 2011-12
Heavy electrical machinery, Tamil Nadu in USD million
Tamil Nadu’s Competitive Advantage
Heavy Engineering
Tamil Nadu
Priority sector in Vision Tami Nadu
2023
Industrial infrastructure - available and
proposed
Large vendor base of MSMEs
Existing engineering clusters
Strong availability of
skilled workforce,
Existing and Upcoming heavy engineering industrial park and industries in Tamil Nadu
Heavy engineering
industrial park
Coimbatore – Salem
corridor
Madurai-
Thoothukudi
industrial corridor
The State has established engineering clusters with established business environment and supply chains in the State – Chennai, Tiruvallur, Kancheepuram, Vellore, Dharmapuri, Coimbatore, etc.
Tamil Nadu is one of the leading States in terms of availability of
skilled workforce.
Companies in heavy engineering sector that have chosen Tamil Nadu to set up manufacturing facilities
Coimbatore is a major hub for the manufacture of textile machinery in India Some of the key machines manufactured are:
Knitting and Spinning Machines Textile Testing Equipments Wrapping Machines
Coimbatore also produces about 60% of India’s requirements of domestic and agricultural pump sets.
• The city’s manufacturing houses also specialize in the manufacture of industrial pumps • The motor and pump industry supplies over 40% of India’s requirements • Coimbatore also contributes to 21% of manufacture of castings in India
Some of the major motor pump manufacturers in Coimbatore
Upcoming projects of heavy engineering sectors are in boilers and turbines and general purpose machinery segments
Boilers & turbines 29,500
81%
General purpose
machinery 5,200 14%
Tractors 1,000
3%
Mining & construction equipment
800 2%
Mining & construction equipment
100 0%
Product wise heavy engineering sector upcoming projects in Tamil Nadu
Over the past decade, investment to the tune of USD 1430 Million has taken place in Tamil Nadu. These projects (86% of completed projects) are predominantly concentrated around Thiruvallur, Tiruchirappalli, Chennai, Kancheepuram and Dharmapuri.
Kancheepuram and Chennai are two prime locations where upcoming projects in heavy engineering sector are being planned/under implementation. Investment to the tune of Rs. 3,660 crore is anticipated.
Chennai
Tiruvallur
Vellor
e
Tiruchirappalli
Kancheepuram
Coimbatore
Erod
e
Krishnagiri
Dharmapuri
Cuddalore
Madurai
Boilers and turbines
Boilers and Turbines
General purpose machinery
Generators, transformers,
switchgears
Industrial machinery
Machine tools
Mining and constructi0n
equipment
Electrical machinery
Tractors
Other transport equipment
(Freight containers, coaches)
Completed projects in heavy engineering sector in Tamil Nadu
Opportunities for Investment
Type of Project : Heavy Engineering Industrial Park
Location : Tiruvallur District
Investment :
$166 Million
Type of Project
: Coimbatore –Salem Industrial Corridor –
Manufacturing and Business Investment
Region I & II
Location : Coimbatore-Tiruppur Districts
Investment : $1200 million
Land area : 5,000 ha
Type of Project
: Madurai- Thoothukudi Industrial Corridor –
Manufacturing and Business Investment
Regions – I
Location : Madurai District
Investment : $ 666 million
Land area : 5,000 ha
Tamil Nadu: Industrial Policy – key initiatives
To invest not less than US $ 30 billion, through private and
public sectors, in infrastructure development
To increase the power generation capacity adequately to meet the future demand by commissioning Mega and Ultra
Mega Power Project
To establish a land bank of at least 53,000 acres throughout
the State
To augment capacities for handling and safe disposal of
industrial effluents
and solid wastes
To augment industrial water supply
To establish Corridors of Excellence
To improve Port connectivity; to upgrade the minor ports at
Nagapattinam, Colachel, Cuddalore and Manappadu as
major ports and to upgrade other ports
To augment social infrastructure like housing,
health care, technical
Education /skill development, etc. to support the
manufacturing sector
High-speed rail corridors with support from
Government of India to connect major cities of Tamil Nadu
Widening of State highways Creating a Tamil Nadu
Infrastructure Fund to finance key infrastructure projects
Additional Chief Secretary - Government of Tamil Nadu Industries Department
Phone: 91-44-25671383 Fax: 91-44-25670822 Email: [email protected], [email protected]
Nodal agency
Tamil Nadu Industrial Guidance and Export Promotion Bureau
19-A, Rukmini Lakshmipathy Road, Egmore, Chennai-600 008
Phone: 91-44-2855 3118
Email: [email protected]
Visit us at www.tamilnadugim.com
