machine tools user industry updates q1 2017 tools... · 2017-11-01 · april, 2017 machine tools...

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April, 2017

Machine Tools User Industry Updates – Q1 2017

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© Feedback Consulting - 2017 2

Key Sections

Section Page

Background 04

Updates – Machine Tools User Industry

Q1 2017 Update - Automobile & Auto Components

Q1 2017 Update - Defence and Aerospace

Q1 2017 Update - Mobile Handsets

Q1 2017 Update - Consumer Durables

Q1 2017 Update - Railways

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27

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Disclaimer

All Rights Reserved

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, IMTMA The information contained herein has been obtained from sources believed to be reliable. IMTMA, The Publisher and Feedback Business Consulting Services Private Limited, The Research Partner disclaims all warranties as to the accuracy, completeness or adequacy of such information. The Publisher and The Research Partner shall have no liability for errors, omissions or inadequacies in the information contained herein, or for interpretations thereof

For information regarding permission, write to:

Feedback Business Consulting Services Private Limited,

1st floor, Sumo Sapphire, #738, 15th Cross, J P Nagar 6th Phase,

Bangalore 560 008 | India

Phone: +91 80 4635 9721

Email: [email protected]

mailto:[email protected]




Background


Client Background and Engagement Background

The client, IMTMA, is the machine tools industry promotion agency in India representing international companies. It wants to provide regular updates on key industries to all prospective companies which route investment through this agency

Client background

Engagement background

IMTMA wishes to conduct regular tracking of select user industries throughout the year. In this context, the agency approached “Feedback” to accomplish the tracking of select user industries through a structured approach and methodology


Key Industries Covered

Automobile & Auto Components

Defence & Aerospace Energy & Power

Railways Consumer Durables

General Engineering**

Dies & Moulds Mobile Handsets

**General engineering industry: Major sub-sectors considered include textile machinery, rubber machinery, gears, pipes & tubes, transformers, compressors, pumps, motors and engines


Updates – Machine Tools User Industries


Q1 2017 Update – Automobile & Auto Components New Trends

News that Impact the Industry

Policies and their Impact

New Investments List


New Trends

New Trends Details

Automobile industry is optimistic on a robust growth of about 5-6% in 2017

January 2017 proved a mixed bag for the Indian automobile industry as some manufacturers reported higher sales numbers while others recorded flat or lower sales

Automakers gained from their new launches over the previous year, with Maruti Suzuki and Tata Motors posting positive volumes in February over sustained demands. While Renault, Nissan and Hyundai continued to strengthen their domestic shares, Ford posted more exports than domestic volumes

Continued focus on infrastructure with an outlay of INR 3.96 lakh crore in the current budget will be a positive sign for the industry

PV & CV segment posted a positive growth in January 2017 compared to December 2016

PV sales during January 2017 was about 265,320 units, an increase of 14.4% over December 2016

In the CV segment, M&HCV sales were flat (0.61%) at 28,704 units in January, much better than the 22,788 units sold in December 2016 (-12.41%). The LCV segment saw the sales dip (1.86%) to 32,535 units

Tata Motors unveiled ‘TAMO’ an incubator for future mobility solutions

Tata Motors is venturing into new areas driven by future technology and innovation, and has introduced its new sub brand “TAMO”. TAMO will operate as a new, separated vertical - in the first step on a low volume, low investment model to provide fast-tracked proves of technologies and concepts

TAMO will act as an open platform to network with global start-ups and leading tech companies to get access to trends, innovations and solutions for the design of future products and services

1/2


New Trends News trend Details

The industry looks for new efficiencies by leveraging technology

The industry will continue to go strong on mobility and analytics. In addition to this, it will be latching on to newer technologies including artificial intelligence and chat bots. 3D printing will start maturing with organizations adopting it for additive manufacturing. So, these are some of the technologies which will gain traction this year

IoT and robotics are very relevant to the industry. IoT has not seen significant usage in the manufacturing space in India, but there is sporadic usage of these technologies in the industry

Ashok Leyland is focusing on chat bots, virtual reality and augmented reality while continuing with other technologies like mobility

Emphasis is on the zero-defect (products) and zero-effect (on environment) mantra with respect to automotive components segment

The Indian auto components segment is fast upgrading itself in terms of R&D capabilities, manufacturing technologies and worker skillsets, thanks to the new legislative requirements including the stringent upcoming BS-VI emission norms, which in particular mandates zero-defect products

OK Play India launched 8 e-vehicles under the brand E-Raaja

OK Play India, the plastic auto component maker, launched 8 e-vehicles which include passenger and commercial vehicles -- under brand E-Raaja. It is priced between INR 1.25-1.5 lakh and is in line with the government’s vision of 100% e-mobility by 2030

Products launched are e-rickshaws, e-vending carts, e-mobile shops, e-loaders, e-garbage collectors, e-school buses and e-scooters

2/2



News Impact

Automobile industry looks for quick respite

Recent demonetization and ban on diesel cars with engines exceeding 2000 cc had an adverse impact on the automobile segment. Several car makers have seen very sluggish sales especially in luxury cars / large cars

Discounts on BS-III vehicles cause loss worth INR 1,200 crore to automakers

The industry is left with a huge inventory of BS-III vehicles whose value is estimated to be about INR 5,000 crore, according to Society of Indian Automobile Manufacturers (SIAM)

SIAM said that over 1.2 lakh units of BS-III vehicles remained unsold across India. Most of these vehicles are either commercial vehicles or two-wheelers, and are a part of dealers’ inventory

Post the Supreme Court hearing last month, which banned the sales and registration of all BS-III vehicles, many dealers and auto makers were forced to clear their existing inventory offering huge discounts. SIAM claims that these discounts have added up to a loss of over INR 1,200 crore

EV segment urges for infrastructure development & extension of FAME Policy

Under FAME-India scheme of the government, the Department of Heavy Industry has extended demand incentives at INR 127.77 crore for purchase of 1,11,897 electric/ hybrid vehicles since the inception of the scheme on 1 April, 2015 till February, 2017

The FAME-India scheme is proposed to be implemented over a period of 6 years, till 2020, wherein it is intended to support the hybrid/ electric vehicles market development and its manufacturing eco-system to achieve self-sustenance at the end of the stipulated period

1/2



News Impact

Automobile exports from India declined by 5% in 2016

India’s automobile exports fell by 5% in 2016, yanked down by lower sales of two and three wheelers across various markets including Latin America and Africa

Two-wheeler and three-wheeler exports pulled down the overall exports during the past year even as overseas shipments in segments like passenger vehicles and commercial vehicles grew in double digits. Major markets in Latin America and Africa continued to reel under high inflation and currency devaluation, thereby impacting demand for vehicles exported from India

VW said to renew India push with Tata Motors alliance talks

Volkswagen AG is in talks with Tata Motors to jointly develop vehicles for emerging markets. Volkswagen is exploring its brands and potential partners to enlarge product portfolio with tailor made solutions

Auto components segment balance sheets strongest in a decade

Crisil stated that the balance sheets of auto components suppliers are the strongest in a decade, which along with steady profitability and higher demand, will enable them to sustain their credit quality over the medium term

2/2



Policy Details

GST on automobile industry

With GST implementation, the standard tax rate of 17-18%, if accepted, will benefit small as well as big cars, since overall difference is inclined towards industry while the overall rates are expected to decrease

If the government puts small cars (except luxury cars) in standard goods and services category, price of small cars may reduce by 10%, while prices for luxury sedans and SUVs may see a drop of about 2-5%

Government emission policy

Sale or registration of BS III vehicles would stop from 1 April, 2017

The government would explore more avenues for greener vehicles under the FAME or Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme

BS IV compliance - mandatory for all CVs from 1 April, 2017

Given that BS IV compliance will be mandatory for all CVs from 1 April, 2017, a sizeable amount of pre-buying was witnessed during March 2017

Upgradation of unsold BS III CV inventory could lead to loss in earnings; exporting remains the only way out as per ICRA

Indian commercial vehicles inventory, even after flash discounts for BS III vehicles, has piled up and the only option left is to export the inventory and upgrade the vehicles to BS IV. However, upgradation has various technical obstacles and export remains the only way out


New Investments List: Automobile

No. Company Project State Project status

Project investmen

t (INR crore)

Machine Tools

Potential (INR Crore)

Start date Completion

date

1 Ashok Leyland Ltd. Jharkhand Vehicle Manufacturing Unit

Jharkhand

Announced NA NA Mar 2017 NA

2 Autohaus Pvt. Ltd. Howrah E-Rickshaws Manufacturing Line

West Bengal

Announced 1300 234 Jan 2017 NA

3 J T Special Vehicles Pvt. Ltd.

Coimbatore Tata cars Special Performance Vehicles Line

Tamil Nadu


4 K P I T Technologies Ltd.

Jamshedpur Automobile Park

Jharkhand


5 Kinetic Green Energy & Power Solutions Ltd.

West Bengal Electirc Vehicles Manufacturing Plant

West Bengal

Announced 100 18 Jan 2017 NA

Total 1,400 252


New Investments List – Automobile

S No. Company Name Project Name State Project Status

Project Investment (INR Crore)

Machine Tools


Start Date Completio

n Date

1 Okinawa Autotech Pvt. Ltd.

Multi Location E-Vehicle Business Project

Multi Announced 270 49 Jan 2017 NA

2 Peugeot Chennai French Luxury Car Manufacturing Plant Project

Tamil Nadu Announced 700 126 Jan 2017 NA

3 Sundaram-Clayton Ltd

Automotive Components Manufacturing Facility Expansion Project

NA Announced 400 72 Feb 2017 NA

4 Ford India Pvt Ltd Wind Tunnel Facility Project NA Announced 1,263 227 Feb 2017 NA

5 Tata Power Delhi Distribution Ltd

Multi Location 1000 Electric Vehicle Charging Station Project

Delhi NCR Announced NA NA Mar 2017 NA

Total 2,633 474


New Investments List – Automobile

S No.

Company Name Project Name State Project Status


Machine Tools


Start Date Completion Date

6 Force Motors Ltd Pune Commercial Vehicle Manufacturing Plant Project

Maharashtra Announced 100 18 Jan 2017 NA

7 Sona Group Multi Location Auto Components Project

Multi Announced 300 54 Mar 2017 NA

8 Ashok Leyland Ltd Jharkhand Commercial Vehicle Assembling Plant Project

Jharkhand Announced 500 90 Mar 2017 NA

9 TVS Motor Company Ltd

Hosur 300cc Motorcycle Expansion Project

Tamil Nadu Announced 350 63 Mar 2017 NA

10 Volvo India Pvt Ltd Odisha Car Assembly Unit Project Odisha Announced NA NA Mar 2017 NA

Total 1,250 225


New Investments List: Auto Components

No. Company Project State Project status Project

investment (INR crore)

Machine Tools



date

1 Exide Industries Ltd.

Haldia Motorcycle Batteries Line West Bengal

Announced 300 150 Jan 2017 Oct 2018

2 Heavy Engineering Corpn. Ltd.

Jharkhand Railway Wheels Manufacturing Plant

Jharkhand Announced 50 25 Feb 2017 NA

3 J M T Auto Ltd. Jamshedpur & Dharwad Auto Components Plants Expansion

Jharkhand Announced 200 100 Mar 2017 Mar 2020

4 M R F Ltd. Gujarat Automotive Tyres, Tubes, Flaps and Related Products Manufacturing Plant

Gujarat Announced 4,500 2,250 Jan 2017 Jan 2027

5 Ramakrishna Forgings Ltd.

Jharkhand Auto Components and Spare Parts Plant


Total 5,588 2,795


Q1 2017 Update – Defense & Aerospace News Trend




News Trend 1/2

News Details

Competition Commission cleared Reliance-Dassault JV

Competition Commission approved the proposed joint venture between Anil Ambani led group firm Reliance Aerostructure and Rafale-maker Dassault Aviation, one of the major deals in India's private defence space

The combination relates to the setting up of a joint venture between Reliance Aero and Dassault. Dassault Reliance Aerospace Ltd. will have Reliance Aero holding 51% share, while the remaining 49% will be held by Dassault

Reliance Group is targeting a business worth INR 30,000 crore as part of the offsets for the contract

Reliance Defence inked pact with US Navy to repair warships

Reliance Defence has announced an agreement with the US Navy for repair and servicing of warships at the Pipavav shipyard in Gujarat

The agreement will see warships from the US Navy's Seventh Fleet visiting the Indian facility for complex repair and alteration works

Reliance Defence bagged INR 916 crore contract from Defence Ministry

Reliance Defence and Engineering Limited (RDEL) has won a contract to build 14 Fast Patrol Vessels (FPVs) for the Indian Coast Guard

Under the ministry of defence contract, the FPVs will be designed and delivered at a cost of INR 916 crore

Army to get 1.59 lakh ballistic helmets

The indigenous helmets will be procured from MKU, an Indian firm which supplies military equipments to the UN and NATO, according to Ministry of Defence (MOD) sources. These helmets are among many major equipment the army is procuring through the ‘Make in India’ route


News Details

Godrej Aerospace is ready with INR 200 crore facility for defence business orders

Godrej Aerospace (GA), a business unit of Godrej & Boyce, is ready with a INR 200 crore facility for taking on new orders from defence and aerospace

Godrej & Boyce has been building capacities to produce larger numbers of equipment and is completely geared for fresh orders from ISRO and Ministry of Defence

Jindal Stainless to make steel for defence use

Jindal Stainless Steel (Hissar) Ltd. will make steel for defence use under an agreement with the sate-run Defence Research & Development Organisation (DRDO)

The company’s High Nitrogen Steel (HNS) will replace imported Rolled Homogenous Armour (RHA) steel currently used in some weapons and combat vehicles. This will reduce the cost of acquisition of armour applications by 50%

India, France to set up Aerospace and Defence Centre of Excellence in Bangalore

The centre will help train 1,600 Engineers and professionals in industry-specific skills in a bid to meet the rising demand for ‘Make in India’ products in defence & aerospace

As part of the above, two campuses will be set up by the Government of Karnataka along with French aerospace and defence major Dassault Systems

Defence Ministry to spend INR 20,000 crore for tech upgrade of strategic borders

Reliance Infrastructure and Tata Power have been selected to develop areas on the border with Pakistan as part of a pilot project of the Defence Ministry for a total cost of INR 20,000 crore

Under the project, the Defence Ministry plans to deploy long-range radars, unmanned aerial vehicles (UAVs), sensors and CCTVs among others that will enable the BSF to guard the international borders, located in difficult terrain, more efficiently

India cleared INR 17,000

crore missile deal with

Israel

INR 17,000 crore deal with Isreal has been cleared by the government for jointly developing a medium-range surface-to-air missile (MR-SAM) for the army, reflecting India's fast growing defence ties with the Jewish nation

The project will be implemented by the DRDO (Defence Research and Development Organisation)and Israeli Aircraft Industry (IAI)

News Trends 2/2



Policy Impact

Maharashtra announced a draft policy for defence manufacturing: The Maharashtra government has unveiled a policy for defence &

aerospace manufacturing industry with an aim to attract an investment of USD 2 billion in the next five years

The policy also proposes to include the industry in the essential services under the Maharashtra Essential Services and Maintenance Act

The draft policy provides a number of fiscal and other incentives to industry players, such as a subsidy of up to 50% gross in value-added tax (VAT) and 100% in central sales tax (CST) for 10 years for projects with investment up to INR 500 crore. The period can be extended by three years. All industries under this policy will be exempted from electricity duty (for 15 years), stamp duty and entry tax/ local body tax

The proposed policy would be a major help to micro, small and medium enterprises to set up defence manufacturing units in the state

The highlight of the policy is INR 1,000 crore fund to help manufacturers in the defence segment

The policy would enable an investment of USD 5 million in Maharashtra, which would create approximately one lakh jobs


New Investments List: Defense & Aerospace

S No.

Company Name Project Name State Project Status

Project Investmen

t (INR Crore)

Machine Tools


Start Date Completion

Date

1 Defense Research & Development Organisation

Morena Defense Unit Project Madhya Pradesh Announced 1,500 450 Jan 2017 NA

2 Aequs Aerospace Pvt Ltd Tuem Aerospace & Defense Manufacturing Facility Project

Goa Announced 500 150 Feb 2017 Feb 2019

3 Kalyani Strategic Systems Ltd, Israel Aerospace Industries (JV)

Defense Manufacturing facility Project

NA Announced NA NA Feb 2017 NA

4 Defense Equipment Manufacturers Association

Pune Defense Electronics Manufacturing Cluster Project

Maharashtra Announced NA NA Feb 2017 NA



S No. Company Name Project Name State Project Status Project

Investment (INR Crore)

Machine Tools


Start Date

Completion Date

5 3F Industries Ltd Assembly/Manufacturing Base Plant Project

Multi Announced 500 150 Jan 2017 NA

6 Airbus Group India Pvt. Ltd.

Goa MRO Helicopter Facility Project

Goa Announced 2,000 600 Jan 2017 NA

7 Kalyani Group Pune Indigenous Jet Engine Lab Project

Maharashtra Announced NA NA Jan 2017 NA

8 Boeing International Corporation India Pvt. Ltd.

Boeing Defense India Manufacturing Plant Project

NA Announced NA NA Feb 2017 NA

9 Vikram Sarabhai Space Centre

Vikram Sarabhai Space Centre Hypersonic Wind Tunnel Facility Project

Kerala Announced NA NA Mar 2017 NA



S No. Company Name Project Name State Project Status


Machine Tools


Start Date

Completion Date

10 Government of Maharashtra

Jejuri Defense Equipment Facility Production Project

Maharashtra Announced 500 150 Mar 2017 NA

11 Government of Maharashtra

Ahmednagar Defense Equipment Facility Production Project

Maharashtra Announced NA NA Mar 2017 NA

12 Government of Andhra Pradesh

Vatluru VEM Aerocity Defense Spare Parts Manufacturing Project

Andhra Pradesh


13 Godrej Aerospace

Godrej Aerospace (GA), a business unit of Godrej & Boyce – Building capacities to produce larger numbers of equipment

NA Announced 200 60 NA NA

Total 5,200 1,560


Q1 2017 Update: Mobile Handsets News Trend




News Trend

News Details

Low cost 4G feature phones may keep lead over smartphones

Feature phones dominated total handset shipments in India in 2016 and this trend is expected to continue in 2017. Migration from basic devices to smartphones slowed due to affordability, durability and longer battery life. Also, low cost 4G feature phones could further stall the move to smartphones

With the support for mobile banking and 4G capabilities (likely in 2017), feature phones will remain popular in the Indian market even in 2017

It is estimated that smartphone sales to grow about 15% to 125 million in 2017 led by Chinese handset makers, from an expected 5% growth in 2016

2017 - High growth year for mobile phones

It is expected that 2017 will be another high-growth year for the Indian mobile phone industry. With the ever-expanding cellular infrastructure enabling high-speed internet and greater digital penetration across hitherto untapped geographies, the country will more and more users adopting mobility-based connectivity solutions to become a part of the digital wave

Demand for 4G and VoLTE-enabled devices to grow

With the world shifting rapidly towards mobility, virtual reality/augmented reality and IoT technologies to become more relevant to mobile phones in 2017

Another trend to watch for is the growth of 4G devices - With mobile operators offering high-speed 4G connectivity at prices comparable to 3G, the demand for 4G and VoLTE-enabled devices will witness an exponential increase in 2017

Government

approved electronics

development fund of

INR 6,831 crore

Government has approved Rs 681 crore as seed capital for building a total corpus of Rs over Rs 6,800 crore under the electronic development fund meant to support entrepreneurship and innovation in electronics and IT

The electronic development fund will contribute to various funds under it for those who invest the money in companies for creation of intellectual property rights in the field of electronics and IT


News Trend 2/3 News Details

Prices of mobile phones are set

to go up

Prices of mobile handsets could go up marginally, by at least 1%, since the government has proposed levy customs duty on a component that makes up more than a fourth of the cost of making a phone. Some handset makers though said they could absorb the additional cost in a bid to be competitive in the crowded market

The government has proposed to impose a 2% special additional duty (SAD) on imports of populated printed circuit boards (PCB) used for mobile phones, as part of its announcements for ‘Make in India’ in the Union Budget of 2017-18

20 crore mobile handsets to be

made out of India in 2017 In 2017, of the 270 million (27 crore) mobile handsets to be shipped, 200 million (20 crore) will be made out of

India, according to a CMR report

Government to incentivize the

'Make-in-India' mobile handset

priced at INR 26

The Indian government is likely to offer an incentive of INR 26 per handset to be made out of India, as around 70% of the allocated INR 745 crore worth of incentives for electronics manufacturing is set to go to mobile handset manufactures, based on the proportion of electronics being produced out of India

Gionee firm plans manufacturing

in India post demonetisation

Handset maker Gionee is firm on its plans to manufacture mobile phones in India despite disruptions due to demonetisation

The company is planning to set up a manufacturing unit spread across 50 acres in Faridabad at a cost of INR 500 crore

Apple to start India

manufacturing in coming months Apple’s Taiwanese manufacturing partner Wistron Corp. is setting up a plant in Bangalore to focus solely on

assembling iPhones


News Trend 3/3

News Details

Smartphone prices may rise up to 25% under GST regime

Prices of smartphones are expected to go up by nearly a fourth this year, owing to rising cost of components and the proposed change in tax structure under the goods and services tax (GST) regime

Handset makers in India are awaiting goods and services tax (GST) rates, which will help them finalise their ‘Make in India’ and expansion plans in the country

Nokia to hit market by this

June

New range of Nokia branded smartphones will be available in India by June, at prices likely lower than those available globally and all the devices will be made locally

Foxconn will make all models sold in the market locally as the company aims to take a place amongst top smartphone players in the coming years

Make in India to gain momentum in 2017

2016 saw every major mobile brand and manufacturer becoming a part of the ‘Make in India’ initiative. As per media reports, over 20 mobile phone brands are now assembling their parts in India, and the trend is expected to continue and gain momentum in 2017



Policy Impact

The government has imposed Special Additional Duty (SAD) on populated printed circuit boards (PCBs) for use in the manufacturing of mobile phones

The government's move to levy custom duties on PCBs may be seen as an attempt to force handset manufacturers to make circuit boards in India or buy Indian-made PCBs, as currently the majority of handset companies only assemble phones in the country

Ironically, the move will only affect those manufacturers who 'Make in India', and those import their handsets in entirety are unlikely to be affected. It is possible that this cost burden will not be passed onto the consumer in the form of a price hike, and that manufacturers absorb the increased costs themselves. It may also be that 'unpopulated' PCBs are imported instead as a loophole to the new regulation

Telecom policy reforms The Department of Telecom is planning to start work on the new telecom policy from 2017 to

facilitate growth of the sector and meet requirements of next generation technologies


New Investments List: Mobile Handsets

No new projects announced in the quarter


Q1 2017 Update – Consumer Durables New Trends





New Trends

New trends Details

Consumer durables: Incentivize energy efficient Products

Consumer durable industry expects government to give out incentives to consumers and manufacturers to shift towards higher star rated products. This eventually promotes domestic manufacturing and boost consumer sentiment while mitigating the impact of demonetization. Consumer durables are expected to be under 18% GST slab

Consumer durables pin hopes on digital payments with summer rush

Post demonetization, durable makers are gearing up for summer sales which constitutes a big chunk to the sales of cooling products such as refrigerators and air-conditioners, especially from cities where consumers have switched to digital payments

FMCG, consumer durable companies look to tap rural market

Consumer goods manufacturers are working on strategies for rural markets, where they expect demand from budget sops. Finance Minister has proposed to spend more on the rural side with an aim to double the farmers’ income in five years. Further, with cut in income tax targeting mainly the small tax payers and rural consumers expecting to have more cash in hand, companies expect growth will return to rural market



News Impact

Imports are eroding component supply base in India in consumer electronics

Basic customs duty on appliances & consumer electronics may rise up to 20% to discourage imports

Auto, private lending and consumer durables industries to suffer as more white-collar jobs are lost

Downward trend across industries like financial services, IT & Telecom, etc., symbolized by fall in growth rate of employment, white collar job creation is seen to follow suit

As consumer durables industry rely primarily on salaried class, opportunities are supposed to get restricted in short run

Long term outlook seems optimistic for consumer durables industry

The industry is one of the most important industries in India, which not only provides employment to millions of people, but is also the driving force for stimulating rapid economic growth

The expansion in communication and infrastructural facilities coupled with increasing per-capita income among the people will lead to surging demands for consumer durables in the country



Policy Impact

Setting up of Electronic Hardware Technology Parks (EHTPs)

EHTPs are duty free. Bonded areas and custom exemptions are extended accordingly

This will reduce cost of transportation/ logistics and result in maintaining effective supply chain. They are allowed the facility to use all duty free equipment/ goods for training purposes.

This will help these units in developing skills of their employees.

At present, EHTP units are permitted to transfer capital goods to other EOUs, EHTPs, STPs, SEZ units and facility has been provided that if such transferred capital goods are rejected by the recipient, then the same can be returned to the supplying unit, without payment of duty

Policies like Make in India, National Electronics Mission and Digital India

With policies like ‘Make in India’, the government has received about USD 63 billion in Foreign Direct Investment surpassing USA & China


New Investments List: Consumer Durables

No. Company Project State Project status

Project investment (INR crore)

Machine Tools



date

1 Super Plastronics Pvt. Ltd.

Gujarat (Kodak) HD LED TVs Manufacturing Plant

Gujarat Announced 300 100 Jan 2017 Jan 2022

2 Syska Led Lights Pvt. Ltd.

Maharashtra Electric Personal Care Products Plant

Maharashtra Announced 150 50 Feb 2017 Dec 2017

3 Foxconn Technology India Pvt. Ltd.

Ahmedabad Apple Products Manufacturing Unit Project

Gujarat Announced NA NA Jan 2017 NA

4

Huawei Telecommunications India Company Pvt. Ltd.

Chennai Smart Phones Manufacturing Facility Project

Tamil Nadu Announced NA NA Jan 2017 NA

5 Intex Technologies India Ltd.

Madhya Pradesh Smart-Phones, Air Conditioners & Consumer Durable Plant Project

Madhya Pradesh Announced NA NA Mar 2017 NA

Total 450 150


Q1 2017 Update – Railways News that Impact the Industry



News Impact

Indian Railways to manufacture own trainsets running at 160 kmph in Chennai

According to the INR 200 crore project, two trainsets will be manufactured in collaboration with foreign players on transfer of technology basis, for which the ICF has floated a fresh global tender

Gujarat inks INR 66000 crore MoU with railways for manufacturing parts of bullet train

Out of the total cost of INR 1.10 lakh crore for high-speed bullet train project, Gujarat government to get 70% share

Swiss firm Stadler to set up rail coach unit in Vizag

Switzerland-headquartered Stadler Rail AG has come forward to set up a locomotive and rail coach manufacturing unit in Visakhapatnam district

Italy eyes investments in Indian Railways, manufacturing

Italy is sending a 200-member delegation to India in April 2017 to scout for investment in railways and manufacturing

The business delegation’s visit is part of efforts to restart engagement under ‘Make in India’ to boost domestic industry and fuel growth

Railways to float INR 8,000 crore tenders for transmission network

As part of a strategy to reduce its electricity bills, Indian Railways plans to award tenders worth around INR 8,000 crore to set up a dedicated electricity transmission network

Prabhu unveils 10-year energy plan for railways to save INR 41,000 crore

According to Indian Railways’ Mission 41k initiative, the national carrier will electrify 24,000 km of rail tracks over the next five years by doubling the annual rate of electrification from 2,000 km to 4,000 km in the next two years



New Investments List: Railways

S No. Company Name Project Name State Project Status Project

Investment (INR Crore)

Machine Tools


Start Date

Completion Date

1 Heavy Engineering Corporation Ltd

Jharkhand Railway Wheels Manufacturing Plant Project


2 Akis Tech Ltd Jharkhand Railway Freight Wagon Manufacturing Unit Project


Total 350 35

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Feedback Business Consulting Services Private Ltd.

Email: [email protected]

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machine tools user industry updates q1 2017 tools... · 2017-11-01 · april, 2017 machine tools...

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