revolutionized sector-emerging economies & markets

Revolutionized Sector-Emerging Economies & Markets

India

©2021 Colliers, Estates of Revolutionized Sector- Emerging Economies & Markets02 ©2021 Colliers, Estates of Revolutionized Sector- Emerging Economies & Markets 03

Table of contents

Foreword 04

Executive Summary 05

Preface 06

Evolution of I-4 industries 08

• Top 10 industry 4.0 innovations in 2021 09

• Top 15 firms ranked under ‘Fortune 500’ & their market size 10

Industry 4.0 in Global Manufacturing 11

• Global scenario in I-4 production capabilities 13

• Classification of Industries and leading players 16

• Roadmap of industry 4.0 in India 18

• Firms in India implementing industrial 4.0 20

• Future potential 23

• Covid-19 impact on digital transformation 25

• Key industrial zones & clusters in India 26

• Real estate implications 32

• Future outlook – Industry 5.0 or Society 5.0 33

Foreword

India is slowly and steadily paving its way into Industry 4.0 and trying to establish a strong presence. Being at the sixth position globally regarding manufacturing output, reflects the market's potential which can be further strengthened by government initiatives and private players to build upon production drivers.

Currently, Industry 4.0 is being applied in the heavy and light engineering industries, automobile and auto components industry to some extent. With greater application in the future, especially in the Data Centres segment, Défense sector, Aviation, and FMCG industries – we indeed expect a more significant digital transformation. Colliers Recommends:

IT/ BPM sectorIncreased focus on digital innovation with efficiency & cost-effectiveness. R&D should be strengthened to constantly develop software & tools helping India adapt to I-4.

Policy MakersHigher investment in Industrial infrastructure and R&D sector, attractive incentive schemes for global industrial leader firms and increased Joint Venture (JV) partnerships in setting up industrial estates will revolutionize the manufacturing segment.

ManufacturersIndustries should focus on gradually increasing the implementation of I-4 in their daily processes. With the increased usage, sense of adaptation & evolving towards better technology would also prevail.

DevelopersWe recommend developers to diversify & expand their industrial portfolio in segments like Cold Storage, Warehouse, Logistics, Robotics, Edge Data centres, etc. Focus should be to provide state-of-the-art infrastructure & technology usage.

©2021 Colliers, Estates of Revolutionized Sector- Emerging Economies & Marketst4 05

21st Century is known as the era of the Fourth Industrial Revolution. Like the way steam engine, power, and telecommunications transformed the ways for the production of goods and services, in recent times, digital technology is changing our habits of life – the way we produce, consume and distribute all goods and services in society. We live in the age of 'Work from Home' and 'Hybrid Workspace' models where almost every gadget we use, touch, or look at contains a chip that enables the Internet of Things. This is the era where "Artificial Intelligence," Big Data," and "Cloud Computing" act, analyse and alert for the next steps of decision making. In this whitepaper, we have looked at how India is positioned to make the most of its transformative prowess. We have tried to provide an overview of the opportunity that lies ahead for Digital India and "Aatma Nirbhar India." This report aims to provide a snippet to investors, manufacturers, developers, and policymakers to get a sense of the present situation and plan for the future.

Subhankar MitraManaging Director, Advisory Services, India

04

Executive Summary

©2021 Revolutionized Sector-Emerging Economies & Markets©2021 Revolutionized Sector-Emerging Economies & Markets

Preface

Industry 4.0 is an innovative concept representing a new stage in the organization and control of the industrial value chain. As per the definition, Industry 4.0 is a name for the current trend of automation and data exchange in manufacturing technologies, including cyber-physical systems, the Internet of Things (IoT), Cloud Computing, Cognitive Computing, and creating the Smart Factory. Key characteris-

One of the first goals of Industry 4.0 is to optimize the processes and enhance productivity. It leads to wards optimized asset utilization and smoother production processes resulting in better logistics & inventory management. In addition, it provides real-time data, making it more customer-centric.

• Advanced technological innovations & higher usage of automation as compared to previous Industrial systems

• Bridging of the physical & digital world, enabled by IoT

• The shift towards smart production stage

• Closed-loop data models & control systems

• Personalization/Automisation/Customisation of products

Source: Industry 4.0 – digital transformation of manufacturing in the fourth industrial revolution by i-Scoop

Mechanization

New manufacturing

Textile industry

Mining & Metallurgy

Machine Tools

Steam factories

Technology

Electrification

Production line

Globalization

Engines/Turbines

Mass production

Computer/Internet

Digital Manufacturing

PLC/Robotics

IT & OT

Automation

Digitization

Electronic/Digital Networks

Convergence IT/OT

Advanced Robotics

Big Data/Analytics

Internet of Things

Smart Factory

Machine Learning & AI

Cyber Physical

From Industry 1.0 to Industry 4.0

06 07

Industry 4.0 also promises better working conditions and sustainability through real-time monitoring, IoT-enabled quality improvements & collaborative robots ensuring superior quality products. Higher business continuity is expected through advanced maintenance & monitoring possibilities.

These steps provide much-needed scalability and agility to the businesses and revenue models. Key pillars which helps Industry 4.0 to accomplish the listed objectives are:

Industry 4.0

Smart Factory Smart Buildings

Smart Homes

Social Web

Business WebSmart Logistics

Smart Grid

Smart Mobility

Internet of Data

Internet of People

Internet of Things

Internet of Services


Evolution of I-4 industries

Migration to the Fourth Industrial Revolution is a complex procedure. It is not solely about implement-ing new technologies and making significant investments in equipment, machinery, software, hard-ware, robots, and education. Industry 4.0 is a vision and a reality with a documented strategic roadmap towards realizing the vision.

Most organizations are still in the early stages of preparation for 4.0 and mainly working ad hoc. They are yet to completely comprehend the digital transformation networks since it is not advisable to change the whole structure all at once because it can generate major disorders in the production process. Organizations are expected to adopt a staged approach with value opportunities at each step and achieve overall value enhancement across the journey – from data to information to knowledge to wisdom and action.

• Autonomous action & machines

• Self-optimizing systems

• From forecast to pro-action

• Agility, flexibility & true innovation

• Transformation

Source: Industry 4.0 – digital transformation of manufacturing in the fourth industrial revolution by i-Scoop

Source: startus-insights.com

Stage 1 -

See

Stage 2 -

Understand

Stage 3 -

Prepare

Stage 4 -

Adapt

• Predictive capability

• From knowledge to wisdom to forecast

• Preparedness

• Maintenance & service

• Intelligence and understanding

• From Information to knowledge

• Patterns & transparency

• AI, Cognitive, analytics & analysis

• Connect to gather

• Sensing, Monitoring

• Big data

• Data to information

• Machines, networks, processes

Industry 4.0 maturity

Top 10 Industry 4.0 innovations in 2021:

7%

8%

16%

13%

13%

5%

10%

11%

9%

8%

Edge Data Centres & Cloud computing

IoTHuman Augmentation & Extended Reality (AR/VR)

Extended Network &

Connectivity

3D Printing

Digital Twin Artifical

Intelligence

Advanced Robotics

Big Data & Analytics

Security, Transparency

& Privacy

These ten innovative and emerging concepts will lay the foundation for Industry 4.0 revolution. Artificial Intelligence, Edge and Cloud Computing, Virtual Reality are witnessing increasing usage in manufacturing processes and applications. They are slowly followed by Cobots, IoT tools, Big data & Analytics led by path-breaking research & software technologies. Most of the emerging technologies and R&D revolves around these concepts.

08 09©2021 Revolutionized Sector-Emerging Economies & Markets©2021 Revolutionized Sector-Emerging Economies & Markets

©2021 Revolutionized Sector-Emerging Economies & Markets

Industry 4.0 in Global Manufacturing

In terms of market size, the global industry 4.0 stood at US$ 71.7 billion in 2019, projected to reach ~US$ 260.71 billion by 2026, growing at a CAGR of 16.3% during the forecast period. Europe is leading the market with US$ 27.84 billion, followed by the Asia Pacific at US$ 20.19 billion with a marginal difference. The market growth is attributed to 3D printing, Industrial robotics, Blockchain, IoT, AR & VR, Artificial Intelligence, 5G & Digital Twin. Share of Asia Pacific is expected to grow at a CAGR of 23.4% & become a market leader by 2026, surpassing Europe with a projected US$ 71.59 billion by 2026.

The European industry has made a substantial investment in technologies and skills, transforming the German manufacturing process. Tech giants such as Siemens, ABB, SAP, BMW are among the early adopters of Industry 4.0 & have moved far ahead in its implementation. Asia Pacific market led by Japan, China & South Korea is owing to their exhaustive measures to adopt industrial automation and implement disruptive technologies in its manufacturing system value chain. Huawei, Foxconn, Honda are key adopters from Asia, particularly China. In Latin America and the Middle East and Africa, the fourth industrial revolution is supported by government initiatives and realizes the significance of adopting digital technologies to sustain in the global market. The high adoption rate in various industries in North America has promoted Industry 4.0 in the region. Also, in Brazil, leading players have partnered to stimulate technological assets to speed up the process. Tesla, Boeing, Honeywell, General Electric, IBM, Amazon, Microsoft are few giant companies leading the way ahead for Industry 4.0 in the North American region.

Leading MNCs & tech giants are focusing on implementing most of these concepts in their processes soon – the above table showcases 9 out of 15 top Fortune 500 companies are IoT enabled & making giant leaps towards the Industrial 4.0 revolution. This could be a trend-setting example for other companies too.

Source: Industry 4.0 market by Fortune Business Insights

Top 15 firms ranked under ‘Fortune 500’ & their market size:

Total revenue generated by Fortune 500 companies in 2020 -

US$ 33.3 trillion

Source: Fortune 500 list, 2021

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Walmart

Amazon

Exxon mobile

Apple

CVS Health

Berkshire Hathaway

United Health Group

McKesson

AT&T

AmerisourceBergen

Ford Motor

Cigna

Costco Wholesale

Chevron

Cardinal Health

Retail

E-commerce

Energy

Computer software

Healthcare

Conglomerate

Healthcare

Pharma

Telecommunications

Pharma

Automotive

Healthcare

Retail

Oil & Gas

Healthcare

523,964

280,522

264,938

260,174

256,776

254,616

242,155

214,319

181,193

179,589

155,900

153,566

152,703

146,516

145,534

Fortune 500Rank Industry IoT enabledRevenue (in $M)Company

10 11©2021 Revolutionized Sector-Emerging Economies & Markets

Global scenario in I-4 production capabilities

01.

Leading 10 countries and their ranking on different drivers of production is listed below. India stands at rank 44 out of a total of 100 countries. Top 5 manufacturer countries contribute to almost half of the world's manufacturing output.

Leading countries dominate the Global Manufacturing Value Added output with a 75% share, resulting in high dependence on select few countries and limited innovations and growth in manufacturing process and output. This reflects the need to improve the infrastructure & drivers of production in other countries to increase their market share in the future.

Source: Readiness for the Future of Production Report 2018, World Economic Forum


To understand a country’s standing in respect to its preparation and readiness towards Industry 4.0, it is imperative to assess how well it performs within 6 Drivers of Production:

North America

East Asia & the Pacific

Europe

Europe

Europe

Europe

North America

East Asia &

the Pacific

Europe

Europe

South Asia

United States

Singapore

Switzerland

United Kingdom

Netherlands

Germany

Canada

Hong kong

Sweden

Denmark

India

1

2

3

4

5

6

7

8

9

10

44

1

6

3

2

4

8

10

9

7

12

34

3

2

1

8

13

7

4

16

6

12

63

5

1

10

4

3

8

6

2

19

18

55

9

1

5

13

8

14

10

11

6

4

54

37

56

3

22

15

13

16

43

2

8

96

1

14

7

6

9

4

12

16

24

34

5

Global Trade & Investment

HumanCapital

InstitutionalFramework

SustainableResources

DemandEnvironmentRegion Country Total

RankTechnology

& Innovation

• How advanced, secure and connected is an economy's ICT infrastructure used for adopting technologies in production

• The ability to foster and commercialize innovations that have potential application in production

Technology & Innovation

• Effectiveness of government institutions, rules and regulations in contributing to shepherding technological development, novel businesses, and advanced manufacturing

Institutional Framework

HumanCapital

• The ability to respond to shifts in the labour market (supply and demand) that are triggered by the Fourth Industrial Revolution

• Current labour force capabilities to adopt and use emerging technologies in production systems

• The ability to cultivate the right skills and talent in the future workforce through education outcomes, talent attraction and retention, and inclusion

Global Trade & Investment

• Participation in international trade to facilitate the exchange of products, knowledge, and technology, and to establish global linkages

• Availability of financial resources to invest in production-related development

• Quality of infrastructure to enable production-related activities

Sustainable Resources

• The impact of production on the environment, including the efficient use of natural resources and alternative energy sources

Demand Environment

• Access to foreign and local demand to scale production

• Sophistication of consumer base to drive diverse industry activity and new products

Leading Countries Legacy Countries High potential countries

Nascent countries Rest countries

75% 10% 3%

10% 2%


Market Size: 3.3% of Global MVA (US$ 459 billion)

Top 5 manufacturer countries in the world & India in respect to share of Global Manufacturing Value Added (MVA) as of 2019

Source: Colliers Research


India

CHINA SOUTHKOREA

JAPAN

GERMANYUSA

China USA

Japan Germany

South Korea India

Advantages:

China performs particularly well on the Demand Environment and Global Trade & Investment drivers. It needs to continue to strengthen the capabilities of its labour force to develop the skills required in the future and improve the levels of innovation within companies.

Challenges:

China's greatest challenges are the Institutional Framework and Sustainable Resources drivers. Though China is the world's largest contributor of carbon emissions, it has stated a commitment to become more energy-efficient and sustainable in the future. Adopting emerging technologies can help accelerate this goal.

Advantages:

The United States is globally renowned for its ability to innovate and is currently at the forefront of major developments in 14 segments. Furthermore, its ability to develop, attract and retain advanced human capital capabilities is supported by well capable higher education institutions .

Challenges:

Policy and regulatory uncertainties, relating to immigration and free trade agreements. As one of the world's largest contributors of carbon emissions, improvements in the efficiency and sustainability of its energy sources should be prioritized.

Market Size:

16% of Global MVA (US$ 2.4 trillion)

Advantages:

Japan performs particularly well on Demand Environment, due to a sophisticated consumer base, robust corporate activity and large market size.

Challenges:

Human capital is a challenging factor for Japan with larger share of migratory population and lower migration from other countries.

Japan has scope of imprivement in Sustainable resurces segment as well.

Market Size:

7.2% of Global MVA (US$ 1 trillion)

Advantages:

Germany stands out for strong education outcomes, advanced technical training programs, a highly capable current workforce and a proven ability to innovate. Germany was one of the first countries to increase digitization and the interconnection of products, value chains, and business models to drive digital manufacturing forward.

Challenges:

Institutional framework & sustainable resources are the major challenges for Germany.

Market Size:

5.8% of Global MVA (US$ 737.94 billion)

Advantages:

The country is particularly strong on Technology and Innovation and ranks in the Top 5 for R&D expenditures and patent applications per million people. Its well-documented ability to innovate has helped to fuel its historic rise and can be a boon in ushering in the next production paradigm.

Challenges:

The Republic of Korea will need to continue to enhance labour force capabilities, particularly in critical thinking skills, digital skills and knowledge intensive employment.

Advantages:

India's manufacturing sector has grown by more than 7% per year, on average, while accounting for between 16% to 20% of India's GDP. The government has made a significant push to improve key enablers and move towards a more connected economy, most recently announcing a US$ 59 billion investment in infrastructure.

Challenges:

Two key challenges for India are Human Capital and Sustainable Resources. India needs to continue to raise the capabilities of its relatively young and fast-growing labour force. This entails upgrading education curriculum, revamping vocational training programs and improving digital skills. Furthermore, India should continue to diversify its energy sources and reduce emissions as its manufacturing sector continues to expand.

Market Size:

3% of Global MVA (US$ 395.69 billion)

Market Size:

28.4% of Global MVA (US$ 4 trillion)


Classification of industries and leading players

02.

Automotive OEMs have been the pioneer and big adopters of innovative technologies (such as robotics) and management practices (such as TPS) which yield more efficient operations and thus a competitive edge. Today, because of evolving customer preferences (such as the demand for customization and quick delivery), the upcoming migration away from combustion engines and regulations requires automotive OEMs and their suppliers to be more adaptable and flexible. The adoption of Industry 4.0 technologies is not exclusive to automotive OEMs like Tesla or BMW, but it also includes tier 1 suppliers like Bosch.

The major players operating under these industries are ABB (Switzerland), Mitsubishi (Japan), Yaskawa (Japan), KUKA (Germany), FANUC (Japan), General Electric (US), IBM (US), Cisco (US), Microsoft (US), Stratasys (US), Google (US), Intel (US), HP (US), Siemens (Germany), Ansys (US), AIBrain (US), SAP (US), Amazon Web Services (US), and General Vision (US).

General Electric (GE) has altered its business model to focus more on the emerging industrial IIoT (Industrial Internet of Things) ecosystem. The company has started developing industrial software solutions based on big data under its Intelligent Platforms division. GE is also one of the founding members of the Industrial Internet Consortium, a non-profit consortium created to develop the standard framework for the IIoT.

ABB Ltd (Switzerland) provides products and solutions for technologies such as Human-Machine Interface (HMI), connectivity technologies, and industrial robots, an essential part of the Industry 4.0 market.

Cisco Systems (US) is also focusing on strategic partnerships with key players such as Tech Mahindra and Emerson Electric Co. as a part of its digital transformation strategies.

16 17

AutomotiveMachinery & Equipment

Computer, Electronics & Electricals

Energy

Metals & Mining

Other Discrete Industries

Process Industries

Other Hybrid Industries


Roadmap of industry 4.0 in India

03.

The adoption of the fourth Industrial Revolution in India is at a nascent stage. Few global firms are steadily implementing its components in their businesses. However, still, there is a huge gap due to high investment, lack of adequate cybersecurity norms & lack of infrastructure. With more significant benefits of I-4 coupled with the government's initiative of "Make in India" and "National Policy for Advanced Manufacturing" would play a significant role in augmenting the manufacturing sector's share in India's GDP by 25% by 2022. Few steps which would propel this transition in India at a faster pace:

Creating 5-7-year strategies instead of 3-5-year business plans.

Wider policy reforms such as subsidies, tax breaks, higher budget allocation, corporate incentives & new government initiatives are needed.

Developing strategies for success 1. Structural reforms 2.

Focus on Infrastructure Telecommunications network and digital infrastructure to be strengthened to ensure global competitiveness and cost-effectiveness.

3. Talent development Investment in the workforce to improve technical skills and increase employability.

4.

Indian business leaders to include global best practices in operations. Also, they are expected to perceive the connection between capital intensive processes and technology-driven industry.

It will spur productivity leaps in the next 15 years, requiring the manufacturer's commitment to continuous improvement.

Committed leadership 5. Digital Transformation6.

Major Indian states are taking initiatives to adapt to Industry 4.0. Andhra Pradesh has taken an initiative to capitalise on the IoT potential in the country.

The state government has approved the first-of-its-kind IoT policy intending to turn the state into an IoT hub by 2020 and target approx. 10% market share in the country. The Indian government has created Green Energy Corridors to bring in more renewable energies, to make smart grids that will support the variable input of renewable energies and create storage. India has committed over US$ 1 bn in this initiative and has started projects in many states, such as Andhra Pradesh, Rajasthan, Tamil Nadu, Gujarat, and Himachal Pradesh.


Firms in India implementing Industrial 4.0

04.

At Rolls-Royce, Industry 4.0 is a critical aspect of business and strategy - using connected systems to make better decisions. This brings together several technologies, such as the Internet of Things, intelligent manufacturing, digital product verification, and virtual design and simulation.

Rolls-Royce is adopting a 'power-by-the-hour business model. When selling engines: customers pay a fixed rate per hour of operation, and Rolls-Royce provides predictive maintenance services based on insights from its 'connected' engines that wirelessly send machine data to Rolls-Royce centers for monitoring and analysis.

Shell company is aggressively using digitalisation under Industry 4.0 to increase the efficiency and effectiveness of their processes. They are aggregating data from diverse sources, using AI, machine learning, and machine vision, enabling them to make better decisions, realising competitive advantage. This has the potential to transform maintenance, operational productivity, improve safety and reduce emissions. Few ways in which digitalisation is being deployed at Shell's assets:

• Predictive Maintenance enables the firm to leverage over a trillion data points through machine learning to detect anomalies. Machine learning and predictive analytics cut waste and enhance process safety by predicting potential malfunctions of critical equipment, allowing preventive actions. The initial predictive maintenance applications for valves and compressors are now deployed at scale across the world.

• Connected workers - They have ensured to provide staff with the digital mobile capability to execute tasks in the field and being able to understand and relate the work they do through real-time asset performance. This is both a key productivity enabler and asset performance improvement lever.

• Asset performance is optimised through Artificial Intelligence- Real Time Production Optimisation (RTPO)

• Inventory optimisation – Shell’s assets require large & expensive parts that take a long time to build & deliver. Hence, they use AI to optimise inventory stock levels enabling informed decisions by inventory analysts.

• Digital twin - A digital twin is the virtual representation of the physical elements of an asset and its dynamic behaviour over the asset lifecycle. Firms simulate real conditions and apply the outcomes that help them prepare and schedule maintenance work, inspections, proactive interventions, and so forth.

ABB strongly believes in the concept of Industry 4.0 & is very keen to take their industries to the next level of automation. They are currently investing in automated & intelligent factories in different regions.

• ABB implements and sells a product 800XA – which is essentially a modern cockpit for any industry and vastly improves asset management. System 800xA is known for delivering productivity through consolidating process, electrical, safety, and telecoms in one system and providing the ultimate high-performance operator control room environment featuring the Extended Operator Workplace.

• Recently, ABB unveiled a technology designed to help engineers efficiently resolve electrical problems in mines right from their control room. The new technology, called the System 800xA mining integrated distribution automation system (MIDAS) Library, features

an enhanced substation control and monitoring platform that provides the team with real-time analytics, including graphical status,interlocks, and measurement and phasor diagrams.

• ABB has also made huge advancements in robotics in a way that humans and robots can work alongside. ABB's new dual-arm robot is an entirely new concept in robotics that has sensor technology that enables it to gauge tolerances – to apply the correct amount of pressure – and to respond to the environment around it, which means it can work safely alongside humans, with no need for cages and other protective equipment.

GE India aspires to become a leading firm in digital industrial firm & is planning to invest US$ 15 billion in software & innovation. This amount is being utilised to implement Industry 4.0 in the company's process and operations.

Emerging logistics firm DHL is actively using Augmented Reality in its day-to-day operation. DHL workers are given AR headsets that have the entire warehouse mapped visible on the screen to make it easy to pick products from its large warehouses. Armed with this headset, the workers know exactly where to go, what to pick, scan, and how and when to access the inventory.


Future potential05.

The Auto Industry plans to make almost half of its factories smarter in the next 4-5 years. The solutions being adopted by the automotive companies to make their factories smarter include cloud computing, 5G technology, advanced automation, virtual assembly technology, autonomous ground vehicles, driverless floor conveyor, remote maintenance portal, metal 3D printing centers, collaborative robots, drones, etc. Such solutions are enabling the transformation of old factories to much productive newer ones.

*Company Official Website#Financial Express article – Industry 4.0: Now manage your machines remotely

• German auto parts manufacturer Bosch has invested around 31 million euros in its Indian plant to develop industry 4.0 solutions.

• Ashok Leyland, one of the largest commercial vehicle manufacturers in India, is in process of adopting smart factory solutions to improve productivity and quality.

• Mercedes-Benz has achieved a four-fold reduction in rejection rate on some key components by using advanced data analytics in production to create self-learning and self-optimizing systems.

• Tesla, who extensively uses automation in its existing facility in the US, would bring in advanced technologies & increased imple-mentation of I-4 in the upcoming India facility.

• The Indian Defence sector is undergoing rapid digital transformation with the use of AI with learning capability. The strategic and

Few measures adopted by Renault as a step towards implementing Industry 4.0:

• Predictive maintenance.

• Collaborative robots - While the bot takes on heavy lifting and repetitive tasks, the human employee is given more time to perform more complex tasks like quality control.

• Building connected applications to provide engaging experiences to existing customers & also generating new business leads.

tactical intelligence processing has moved out from typical command centers to an autonomous and augmented military intelligence network. They can employ other technologies similar to other country's defence sector.

• Europe uses Additive Manufacturing for enhancement of designs & cost reduction on tolls and parts.

• The US army’s R&D team worked on Tactical Augmented Reality (TAR) which can show the exact location of an enemy as well as the position of the allied and enemy forces.

• The French army evolved its operational requirements using simulations.Repair technology is an essential requirement to ensure that the aircraft is maintained, keeping in mind the airworthiness, to ensure the passengers' safety during flight and the cargo. Applied by Australian Air Force and the Defence Aviation Safety Authority.

These two firms are working together to address the requirements of an enterprise in multiple sectors with all the latest technologies such as Cloud, IoT, AI & Machine Learning.The telecom giants have deployed Industry 4.0 applications at Nokia's state-of-the-art telecommunication equipment factory in Chennai. The deployment created a secure LTE Technology along with low latency to maximize efficiency and productivity.

JCB India, the leading manufacturer, and supplier of heavy construction machines, launched Livelink. This digital offering will introduce first-of-its-kind OEM support for JCB's clients in India. This control room will monitor the health of machines sold with the help of sensors and telemetry, help customers track their machines in real-time, and use geofencing to prevent theft and illegal use of the devices. The Livelink platform currently monitors 1,30,000 machines.

JCB uses an Industry 4.0 ready manufacturing facility to make these machines. By the end of 2021, the company will be able to develop predictive technologies because of the growing number of sensors that go into the machines. The data gathered would be fed into machine learning models that would help predict various incidents related to a machine in its lifetime and help improve the products and manufacturing processes.


Covid-19 impact on Digital Transformation

06.

Digital transformation has been a buzzword over the last few years, with small and medium businesses as well as large enterprises moving operations to the cloud and adopting online productivity along with collaboration services. However, the lockdown and remote working were necessitated by the Covid-19 pandemic, which created an unexpected reality check for organizations of all sizes. The restrictions imposed by the pandemic turned the world upside down, with industries like travel and hospitality going bust and many businesses experiencing survival challenges. Covid-19 shifted our world online as we adopted unfamiliar versions of work, commerce, and healthcare. This has resulted in more and more organizations charting the course for their journeys toward cloud computing and digital transformation. The COVID-19 pandemic has accelerated the digitisation process by at least a decade. Even though no company can be 100 percent immune to issues, having digital technology at the core of everything can make a business more resilient, and faster to adapt to any headwinds.

Source: Satya Nadella Interview story by Yourstory, Forbes & Business standard

• In terms of office space, this rapid shift towards Work-from-home forced the adoption of platforms such as Teams, Zoom, and Slack to enable remote work and maintain workforce productivity. Physical office space would be repurposed for gatherings rather than day-to-day work, offer more remote working options, and invest in advanced solutions that further enhance remote engagement.

• The retail industry is going through seismic shifts. The pandemic has accelerated the adoption of e-commerce. Particularly in retail, tech has caused a radical shift in the way people shop, with technologies such as AR/VR providing a richer experience. It has also transformed backroom operations such as payments processing and settlements and inventory management, logistics, and delivery.

• The healthcare sector will witness tremendous changes. The widespread adoption of telehealth and virtual care during the pandemic has made healthcare more accessible and reduction in barriers. The variability in Covid-19 symptoms has demonstrated that a one-size-fits-all approach to healthcare does not adequately meet consumers' health needs, creating need for a holistic approach in the healthcare segment. Tech-enabled healthcare companies are rapidly working to meet the rising demand for virtual senior care during the pandemic and enable the delivery of high-quality, connected care in the home. The current adoption of technological innovation across industry sectors proves that we have already started to reflect, rethink and reimagine a better future. These transformative changes have forever shifted the society to a new digital era.

Industrial Edge Data Centre will be in demand with the increased application of Industrial 4.0. The real-time nature of these applications demands data to be stored and analysed as close as possible to where it's produced. Some will be relatively large facilities housed inside manufacturing plants; others will be small micro data centers located outdoors in remote environments - and everything in between. Relying on a central cloud-based data center would likely introduce too much latency, hence the need for a series of edge data centers. Schneider Electric, of course, offers an array of micro- data center solutions that are intended for edge environments and numerous partnerships with IT vendors for compute, storage, and networking components. The company's recent merger with AVEVA adds powerful analytics software for commercial and industrial environments, such as predictive analytics.


©2021 Revolutionized Sector-Emerging Economies & Markets

Key industrial zones & clusters in India

07.

Source: Invest India

The map represents the established industries, which rely on technology, present in each zone. These zones offer good workforce availability, robust infrastructure, well-established domestic and global connectivity owing to national highways, airports, and seaports, India's vital economic hubs with established social infrastructure, and industry-specific policies & incentives by state governments.

Automobile & Auto Ancillary

Capital Goods & Heavy Engineering

Pharmaceuticals, Medical Devices & Biotechnology

Textile & Apparels

Aerospace & Defense

Electronics System Design Manufacturing & Consumer Electronics

NORTH ZONE

WESTZONE

SOUTHZONE

Karnataka

Andhra Pradesh

Telangana

Uttar Pradesh

Haryana

Rajasthan

Gujarat

Maharashtra

Tamil Nadu

26 27©2021 Revolutionized Sector-Emerging Economies & Markets

Top industrial clusters pioneering growth of the manufacturing landscape of India


28 29

Top Industrial Parks (Established & Upcoming Parks with new phases/ongoing development)

Extent

8,250 acres Current – 5,000 | Future – 5,000 additional per annum

Electronics & Footwear hubs – INR 2,600 crores | Other hubs – Not disclosed

Panasonic, Denso, Tsuzuki, AllCargo, IndoSpace, Reliance Retail

747.5 acres 100,000 INR 33,000 crore Haier, Forme Trading, Satkriti Infotainment Pvt. Ltd

Electronics, Biotech, IT/ITeS

Projected Employment Projected Investment Key Occupiers

NorthReliance MET (Model Economic Township), Haryana

DMIC Integrated Industrial Township Greater Noida Limited (IITGNL)

600 acres 7,000 INR 3,900 crores Yanmar, Nissei Electric, Usui Engineering, Electronics, Automobile, Auto components

3,000 acres Over 1.5 lakh (as per leased plots total 1,100 acres)

Over INR 20,000 crores (as per leased plots total 1,100 acres)

Boeing, Biocon, Jubilant Life Sciences, Shell, Wipro, SAP Labs

Hardware, IT/ITeS, Aerospace, Engineering

SouthOrigins by Mahindra World City, Chennai

KIADB Hardware Park, IT Park, Aerospace SEZ & Aerospace Park, Bengaluru

7,500 acres Over 37,000 (current & upcoming units)

Over INR 36,000 crore (current & upcoming units)

Mondelez, Kellogg’s, Isuzu, Pepsi, Alstom, Foxxconn, IndoSpace

Electronics, Food Processing, Logistics, Sri City, Chittoor District

8,500 acres (Phase V – 1,570 acres)

Phase V – 25,000 Phase V – INR 50,000 crores Mercedes Benz, Volkswagen, Bajaj Auto, Mahindra & Mahindra, Bosch, Force Motors, ESR Logistics

Automobile, Engineering, Logistics

10,000 acres (68% industrial)

3 lakhs INR 70,000 crores Hyosung Industries, INOX Air Textile, ESDM, Food Processing, IT/ITeS

WestChakan Industrial Area, Pune

Aurangabad Industrial City (AURIC)

340 acres ~10,000 to 15,000 --- -- Engineering, Automobile, Pharma, Textile, Food Processing

Origins by Mahindra World City, Ahmedabad

Parameters West South North

Key Industrial Hubs Mumbai, Pune, Aurangabad, Ahmedabad, Vadodara Bengaluru, Chennai, Hyderabad, Chittoor Dist., Nellore

Auto & Auto Ancillary, Pharma & Biotech, Capital Goods, Electronics, Textile

Aerospace & Defense, Electronics, Capital Goods, Auto & Auto Ancillary, Pharma & Biotech, Textile

Gurugram, Noida, Bhiwadi (Rajasthan)

Auto & Auto Ancillary, Electronics, Textile

Focus Industries

Maharashtra – 13Gujarat – 10

Karnataka - 17 Tamil Nadu - 14Andhra Pradesh - 1 Telangana - 3

Haryana – 16Uttar Pradesh – 2Rajasthan – 8

Ease of Doing Business Rank (2019)(EODB Index is based on the implementation of the Business Reform Action Plan recommended by the Department of Industrial Policy & Promotion to all States & UTs.)

Focus Industries


Upcoming industrial corridors


Multiple Industrial Corridors & Road Infrastructure projects are currently under different stages of planning & development across the country. These projects aim to enhance the regional connectivity within the country, propel economic activity along the corridors and create a robust and high-speed infrastructure. The table represents the key significant projects that are likely to impact the growth of India's manufacturing sector.

30 3131

Project Brief

• Economic Corridors, Ring Roads, Logistic Parks, Border Roads, International Road Connectivity, Coastal Roads, Port Connectivity Roads, Expressways.

• Estimated cost of INR 5.35 lakh crore.

• 24,800 kms as a part of Phase 1 to be completed by 2022.

• North East Economic Corridor – 3,246 kms

• Mumbai – Kolkata Economic Corridor – 1,854 kms

• Mumbai – Kanyakumari Economic Corridor – 1,619 kms

• Amritsar – Jamnagar Economic Corridor – 1,316 kms

• Kandla – Sagar Economic Corridor – 1,038 kms

The project also covered other infrastructure projects across various towns & cities.

Program launched by Ministry of Road Transport and Highways to build critical national highway infrastructure across the country to enable and optimize passenger and freight movement.

Focus Zones / Corridors

Bharatmala Pariyojana

Project Brief

• Development of smart industrial cities that would offer the best manufacturing and investment destination at par with global practices, creating employment opportunities and leading the socio-economic development of the country.

• 11 corridors across 4 phases to be developed by 2025.

• Projects under Delhi Mumbai Industrial Corridor (DMIC) are currently under implementation.

• Delhi - Mumbai

• Chennai - Bengaluru

• Amritsar - Kolkata

• East Coast Industrial Corridor (ECIC) with Vizag Chennai Industrial Corridor

• Bengaluru - Mumbai

• Extension of CBIC to Kochi via Coimbatore

• Hyderabad – Nagpur, Hyderabad – Warangal, Hyderabad - Bengaluru

• Odisha Economic Corridor

• Delhi – Nagpur

The Government of India announced the National Industrial Corridor Development Program (NICDP) to develop new industrial cities and converging next-gen technology across infrastructure projects.


Industrial Corridors

Project Brief

• Coast community skill development: tourism, R&D in Port & Maritime, Fishing Harbors.

• 14 Coastal Economic Zones.

• 574 projects with an estimated cost of INR 6.01 lakh core (121 projects completed with a total incurred cost of INR 30,228 crore).

• Port Modernization: Chennai, Cochin, JNPT, Kandla, Kamarajar, Kolkata, Haldia, Marmugao, Mumbai, New Mangalore, Paradip, Tuticorin and Vizag.

• Coastal Economic Zones: Coastal regions in Gujarat, Maharashtra, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, West Bengal and Orissa.

SagarMala program announced by the Ministry of Shipping aims to accelerate the growth of ports in India by developing greenfield ports, modernizing existing ports and enhancing coast connectivity of India.


SagarMala Program


33

Real estate implications

08. Future outlook – Industry 5.0 or Society 5.0

09.

Real estate is still a nascent industry in terms of the implementation of Industry 4.0 tools and concepts. With the government's focus on industrial and manufacturing segment growth, we expect the real estate industry to witness a gradual shift. The establishment of specialised industrial parks such as Food parks, IT clusters, Auto manufacturing hub, etc., will bring in the required expertise and technology to scale up the industrial infrastructure.

It is imperative and of utmost importance to recognise new requirements of Industrial infrastructure in alignment with benchmarked industrial parks in top 5 manufacturing -focused countries. Real estate developers in India need to adapt to changing trends by bringing in IoT-enabled product offerings in Data Centres, Warehousing, Logistics & Industrial Park. This will attract global companies as well as foreign investment.

Industry 5.0 makes a significant change of perspective as the future of Industry 4.0; the core of Society 5.0 focuses on people as a fundamental axis of the production sector. Both production and marketing fields agree that beyond the focus of Industry 5.0 is the Society 5.0. In Society 5.0, the products or services offered will be customized to the customer's needs. The intention is to reach a fusion between technological development and human beings, with the main objective of people and machines complementing their activities and not being replaced by machines. The use of collaborative robots is a fundamental change for the collaboration of repetitive, dangerous, and unsafe tasks. Furthermore, human work will be intellectual production, which means it will be necessary to be proactive in this social model.

This new approach of man-machine interaction is expected to increase production and offer greater satisfaction to both the worker and the final customer with customized products. Again, it is essential to emphasize that Industry 5.0 goes beyond just a production process, and looks for a Society 5.0, thought and made for people and cobots integrated.

This new approach of man-machineinteraction is expected to increaseproduction and offer greater satisfactionto both the worker and the finalcustomer with customized products.Again, it is essential to emphasize thatIndustry 5.0 goes beyond just aproduction process, and looks for aSociety 5.0, thought and made forpeople and cobots integrated.

We expect significant improvement in manufacturing output, and real estate establishments' infrastructure in India as companies and developers work towards achieving the government's ‘Aatma Nirbhar Bharat’ campaign.

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The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

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