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INDIA – OPPORTUNITIES & POTENTIAL GROWTH SECTORS SEPTEMBER 14, 2010 IMTS CHICAGO 1
INDIA – OPPORTUNITIES &
POTENTIAL GROWTH SECTORS
SEPTEMBER 14, 2010IMTS CHICAGO
1
9.30 9.609.00
6.707.40
8.509.10 9.00
8.10
‐10.00
‐5.00
0.00
5.00
10.00
15.002005
2006
2007
2008
2009
2010
EST.
2011
EST.
2012
EST.
2015
EST.
INDIA
CHINA
USA
EURO ZONE
UK
S. KOREA
RUSSIA
BRAZIL
MEXICO
World Real GDP Growth in Annual Percentage
IMF DATA 2
9.9
4.46.5
9.9 9.7 10.1 9.8
-25
-20
-15
-10
-5
0
5
10
15
2020
07
2008
2009
2010
EST
.
2011
EST
.
2012
EST
.
2013
EST
.
CHINA INDIA JAPANBRAZIL MEXICO USARUSSIA EUROPE
OXFORD ECONOMICS DATA 3
Industrial Production Data -
%Change
Year Under 15 15-64 65+ Total
20002000 361361 604604 4545 10101010
20052005 368368 673673 5151 10931093
20102010 370370 747747 5858 11751175
20152015 372372 819819 6565 12561256
20202020 373373 882882 7676 13311331
DISTRIBUTION OF POPULATION BY AGE GROUP
64%
31%
5%
15‐64 0‐14 > 65
Young India -
Over
700 Million Consumers
Population Projections ( In Millions)
Median age of population is only 25
Presently Only 10 cars / 1000 people
4
Indian Machine Tool Import in Million US $ of TOTAL consumption, ~ 80% is imported (!)
36 67 71 87 7425 32 41 47 68123
204
336
364
187
140
199
280
224
156
59 96 94 114
103
0
50
100
150
200
250
300
350
400
2005‐06 2006‐07 2007‐08 2008‐09 2009‐10
USA SWITZERLAND JAPAN GERMANY ITALY
6.5%7.2%
IMTMA DATA
6
14.8816.54
20.90
27.01
34.2936.61
38.24
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
2002‐03 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09
7SIAM data
Automobile Sector Turnover in US $ Billion
4.41%
74.83%
4.03%
16.74%
2 WHEELERSFY2009~10 (10512889)FY2008~09 (8419792)
CHANGE 24.86%
PASSENGER VEH.CARS,MPV,SUV
FY2009~10 (2351240)FY2008~09 (1838593)CHANGE 27.88 %
C VFY2009~10 (566608)FY2008~09 (416870)
CHANGE 35.92 %
3 WHEELERSFY2009~10 (619093)FY2008~09 (497020) CHANGE 24.56 %
SIAM data 8
Auto Industry Market Segments for 2009-10 (April-March)
Total Production: 14,049,830 Y-O-Y Growth 25.7%
0.723
0.9891.2
1.3
1.541.77 1.83
2.35
0
0.5
1
1.5
2
2.5
2002
‐0320
03‐04
2004
‐0520
05‐06
2006
‐0720
07‐08
2008
‐0920
09‐10
Production data in million vehicle
Market Share DataMaruti Suzuki
Hyundai
Tata Motors
Mahindra
GM
Honda
Toyota
Ford
Fiat
Others
9SIAM data
Passenger Vehicles ( PVs)
203
275
353391
519549
417
566
0
100
200
300
400
500
600
2002‐03
2003‐04
2004‐05
2005‐06
2006‐07
2007‐08
2008‐09
2009‐10
Production data in ‘1000’ vehicles Market Share Data
Tata Motors
Mahindra
Ashok Leyland
Eicher
Force Motors
Piaggio
Swaraj Mazda
Others
India is the World’s 4th
Largest Truck Manufacturer
10SIAM
data
Commercial Vehicles ( CVs)
5.075.622
6.527.6
8.46 8.02 8.41
10.51
0
2
4
6
8
10
12
2002
‐0320
03‐04
2004
‐0520
05‐06
2006
‐0720
07‐08
2008
‐0920
09‐10
Production Data in Million Vehicles Market Share Data
Hero Honda
Bajaj Auto
TVS Motors
Honda
Yamaha
Suzuki
Others
India is the World’s 2nd
Largest 2 Wheeler Market
11SIAM data
Two Wheelers
276
356 374434
556500 497
619
0
100
200
300
400
500
600
700
2002
‐03
2003
‐04
2004
‐05
2005
‐06
2006
‐07
2007
‐08
2008
‐09
2009
‐10
Production Data ‘1000’ vehicleMarket Share Data
Piaggio
Bajaj Auto
Mahindra
TVS Motor
Atul Auto
Scooters India
Force Motors
12SIAM data
Three Wheelers
13
India: The global small car hub “
CARS FOR INDIA, CARS FOR THE WORLD”
Will produce 31% of world’s ‘A’
segment cars by 2013
GOVERNMENT OF INDIASIAMACMA
AMP 2016AMP 2016
Turnover to $145 bn
from $32 bn Export revenue to $35 bn
from $4.1 bnEmployment of 25 Million
By 2016 Automotive sector is expected to contribute
10 % of the GDP from 5% at present
On 29th
January 2007 Prime Minister released 10 years Automobile Plan 2006~16 to give a roadmap
to Indian automobile industry
14
Auto Manufacturing Plan
15
AMT-
CHENNAI TECHNOLOGY CENTRE
2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10
8.7
12
15
18 18.419.2
0
2
4
6
8
10
12
14
16
18
20
16
Auto Component Turnover in US $ Billion
18%
15%
3%
15%4%3%
%
2%5%
7%
TVS
MNCs
AMALGAMATION GP.
OTHERS
AMTEK
TATA GP.
UNORGANIZED MKT
RANE GP.
MUNJAL GP.
KALYANI GP.
0%
ENGINE PARTS31%
DRIVE TRANSMISSION& STEERING
PARTS19%
BODY & CHASIS12%
SUSPENSION&
BRAKING PARTS12%
EQUIPMENT10%
ELECTRICAL PARTS9%
OTHERS7%
COMPREHENSIVE RANGE OF PRODUCTS
PRODUCTION WISE MKT SHARE
Over 2500 manufacturers spread across the country
17
Auto Component Sector
18
Auto cos. to invest US$ 30 b over next 4 years
period
US$ 55 million for expansion of Powertrain
facility in Rajasthan
Toyota is putting up 2nd
plant at an investment of US$ 700 million and additional investment of US$ 110 million to make engine and gear boxes for small car, Etios.
Daimler trucks is investing over US$ 1 billion for setting up plant near Chennai
Volvo –Eicher
JV will invest US$ 65 million for production and assembly of medium –
duty engines.
Ashok Leyland-
Nissan JV will invest US$ 500 million to make LCV and powertrain.Ashok Leyland will further invest US$ 435 million for Capex.
Bosch to invest US$ 435 million to expand in capacity and R&D.
Maruti
Suzuki to invest US$ 2 b for capex
& technological upgradation.
19
New Investments in Auto Sector
67.5780.39
97.32
119.78
148.98
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.0020
07
2008
2009
2010
2011
TOTAL
RAILWAYS
POWER
ROADS &BRIGES
PORTS
AIRPORTS
FINANCE MIN. DATA
$ 66 bn
$ 167 bn
$ 79 bn
$ 22 bn
$ 8 bn
$ 514 bn
20
Total US $ 514 Billion Planned Investments for Infrastructure Development in 11th 5 Year Plan (2007~2011)
21
80.76
51.1630.44
0
50
100
STATE SECTOR CENTRALSECTOR
PRIVATESECTOR
TOTAL 162.36 GW
52.5% 34% 13.5%
104.4, 64%
36.95, 23%
4.56, 3%
16.43, 10%
THERMAL HYDRO
NUCLEAR RENW.
22
PRESENT FUEL WISE INSTALLED CAPACITY IN
GW
INDIA RANKS 5TH
IN TERMS OF POWER GENERATION CAPACITY
Installed Capacity as of June 30, 2010
By the end of 11th plan annual per capita consumption will be around 1000 units.
Planned investments in power sector in 11th plan is close to US $ 200 b & US $ 250 b for 12th plan.
Over next 10 years period Nuclear power generation is going to attract an investment of US $10 b.
National Solar energy mission aims to increase the solar energy capacity from present 5 MW to 20 GW with planned investments of more than US$ 45 b.
59.7
15.6
3.3
14
THERMAL
HYDRO
NUCLEAR
RENEWABLE
23
Planned Capacity Addition in 11th
Plan (2007~2012)
TOTAL 92.7 GW
Scale Of Opportunity
24
WINDPOWER SCENARIO IN INDIA
INDIA RANKS 5th
POSITION IN THE WORLD
Aggregate installed capacity as on July 31st
2010-
12 GW
Estimated potential of Wind power in India > 48.5 GW
10 YEARS GROWTH OF INDIAN WIND MKT.CUMULATIVE INSTALLED CAPACITY
IN MW
Total of 19 Manufacturers With Multiple Plants
VestasWinwindSouthern WindfarmsSiva Wind TurbinesShriram
EPCRRB EnergyRegen
PowertechPioneer WinconLeitner
ShriramGamesha
Windturbines
SuzlonKenersys
IndiaGlobal WindpowerEssar
WindpowerEnercon
IndiaIndia Windpower
GE IndiaChiranjeevi
Wind
Inox
Wind
25
Wind Turbine Manufacturers in India
26
27
HYDERABAD(ANDHRA PRADESH)BANGALURU
( KARNATAKA)
KORAPUT(ORRISA)
MUMBAI& NASHIK(MAHARASHTRA)
LUCKNOW & KANPUR(UTTAR PRADESH)
Aerospace hub of India
Indian Aerospace Industry
Projected investment in Indian Aerospace segment -
$ 110 billion
$ 80 billion in procurement of new aircraft$ 30 billion in airport related infrastructure
28
PASSENGERS ( IN MILLIONS) CARRIED AT MAJOR AIRPORTS
CARGO HANDLED ( IN 1000 TONNE ) AT INTERNATIONAL AIRPORTS
Indian Aerospace--Vision 2020
JV to assemble AW 119 helicopters in Hyderabad for Indian and global market.
Tata Advanced Systems tied up with Sikorsky to manufacture S-92 helicopters in India. Deal has been struck for $350 million and plant is set up in an SEZ at Hyderabad.First 19 seater
S-
92 aircraft would
be delivered by end of 2010.
HAL –
Rolls Royce 50:50 % JV in
Bangalore to manufacture civil aero engine components for exports.
29
Opportunities In Aerospace Sector
First manned mission to moon by 2016. Project is likely to attract an investment of $ 3 billion.
ISRO is enhancing the capacity for commercial launching of Foreign satellites.
Quest bags contract from SAAB to manufacture and supply sheet metal parts for Boeing 787 Dreamliner
cargo doors.
30
Opportunities In Aerospace Sector
31
DEFENCE SECTOR
Achieving Self Reliance in Defence
21
25.5
3032.03
2007‐08 2008‐09 2009‐10 2010‐11
ANNUAL BUDGET IN US$ Bn PLANNED DEPARTMENT WISE % OF TOTAL DEFENCE EXPENDITURE FROM
2011‐15
50
15
27
8
ARMY
NAVY
AIRFORCE
DEFENCE PRODUCTION + R&D
Likely Spending 11th
plan (2007-12)> US$100b 12th
plan (2012-17)> US $120b
3rd
Largest Importer of Defence
Hardware
32SOURCE-
MINISTRY OF DEFENCE
40 Ordnance Factories8 Public Sector Undertakings50 R & D Laboratories.
Opening up of Defence Sector –
100% equity participation from Indian Company with 26% FDI ( likely to increase) permissible under license.
30% Defence Offset clause ( Deal value > US$ 75 million)-Will drive modernization of defence
industrial base and create an opportunity worth more than US$ 11 b.
This ‘BUY & MAKE”
policy applies to all capital acquisitions from Foreign Suppliers. They are obligated to purchase directly, or execute export orders for defence products and components manufactured ( or services provided) by Indian Defence Industries.
33
Defence Sector Highlights
CHENNAI
AMT- CHENNAI TECHNOLOGY CENTRE ( CTC )
34
35
36
38
AMT -
Chennai Technology Centre
39
January 20 -
26, 2011 at Bangalore, India
South East Asia’s biggest machine tool event
Participation of over 940 companies from India and 24 overseas countries, with over 80,000 business visitors. Also, for 2011, there will be an AMT USA Pavilion and Mini Trade Mission in Chennai.
AMT-
India Staff at your service
ARUN MAHAJANTel-
PRAKASH ANTONYTel-
40
THANK YOU
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And see you in India soon…
