in India The fabricated metal products industry in ... - Teknikföretagen

products rather than remain a largely low skill industry. For this an increasing number
of foreign collaborations is required. A start has been made in this regard but it
is far from enough.
Future outlook
There are clear indications that India is beginning to get noticed and recognized as
a global strategic necessity. The global Original Equipment Manufacturers (OEMs)
and Tier I companies are increasingly appreciating the advantages of India’s open
market economy, its engineering and manufacturing skills as well as its ability to
handle global business. In view of the above, the market potential continues to grow
for the fabricated metal products industry. The future is undoubtedly contingent on
the growth of the automotive industry, machinery and equipment industry, electronic
equipment industry and electrical machinery industry.
There is an increasing trend of consolidation. Several acquisitions, joint ventures
and tie-ups are taking place across industry segments. Expectedly, the route for consolidation
will be through M&As where the smaller units that are unable to stand
the process of competition will ultimately sell up to the larger players in the market.
The entry of global majors in the industry to set up their manufacturing facilities is
only going to lead to an increase in the scale of consolidation of companies in the
industry. Technology, enhanced quality and competitiveness across segments have
been improving but there is a long way to go in this regard. Increasing threats from
other Asian countries such as China, Taiwan and Korea have led to an increase in
the levels of competency in the industry.
Very few Indian companies in the industry have a global view either due to their
small scale or due to the fact they want to tap the burgeoning domestic market. The
focus is largely on the domestic market. While the Indian companies will certainly
base their business decisions on the basis of expectation of demand in the Indian
market, the industry’s perspective on the export market is required to undergo a
transformation. Indian companies till now have lacked a thrust on exports. However,
the emergence of a global market has led to a blurring of margins between
export and domestic markets.
A number of initiatives are being taken to enable the industry to grow and mature
at a fast rate. These include measures such as building technology leadership, increase
in emphasis on diversified products, customer bases and markets, enhanced
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