The Indian welding market
is dominated by the use of
manual welding equipment.
However, this situation
is expected to change as
several end-user industries have
started demanding automated
equipment to support higher
productivity, Frost & Sullivan,
the growth partnership company,
says in a press release.
Robust expansion of the Indian
shipbuilding, construction and
energy, particularly wind power,
sectors will underline strong
growth of the Indian welding
market over the medium- and
long-term.
According to Frost & Sullivan,
a strategic analysis of the Indian
welding equipment market
found that the market earned
revenues of $208 million in 2008
and estimates this to reach $311
million in 2015.
"While the financial meltdown
has adversely affected most enduser
industries for welding
equipment in India, energy,
construction and shipbuilding
sectors have, to a large extent,
been recession-proof and have
been generating moderate
demand," notes Frost & Sullivan
Senior Research Analyst
Archana Chauhan. "A key driver
boosting market revenues has
also been the gradual move from
manual to automatic and semiautomatic
welding equipment."
Low technology
The welding industry in India
has generally been low technology
with infrequent innovation.
However, the adoption of
automatic and the semi-automatic
welding systems has
been rising in recent years. At
the same time, the recession
and reduced budgets have
underlined the continued
popularity of economical,
manual techniques.
Enhanced FDI equity inflow in
India has supported projects in
the oil and gas sector, offshore
activities, aerospace and heavy
machinery industries. Several
foreign automobile companies
have established their manufacturing
base in India. Such trends
have had a positive impact on
the uptake of welding equipment
and consumables.
However, the recession has
affected the flow of FDI into
the country. Hence, demand for
welding equipment in India
is expected to decline over
the short term.
Although global steel demand
slumped in the past year,
India's steel market has experienced
nearly 10 per cent
growth. The spiralling demand
for steel is promoting the use of
innovative, state-of-the-art
uses of steel while triggering
the uptake of high volumes of
welding equipment.
"One of the major challenges
faced by the local market in
India is the substantial import of
welding equipment," cautions
Archana. "With expanded
imports, the market share of
domestic participants is continually
declining in several industries,
especially automotive and
transportation, shipbuilding
and the white appliances."
Unorganised sector
Another challenge faced by
Indian welding equipment
manufacturers is the unorganised
sector that currently occupies
close to 50 to 55 per cent of
the market. This sector is continually
growing due to the lack
of specifications and approvals
required for welding activities
in end-user industries.
Although some approvals are
required for high-risk jobs in
power and offshore, there are
no such requirements in the
fabrication industry where
welding finds extensive use.
"To be competitive, welding
manufacturers need to provide
standardised goods with a focus
on product differentiation,"
advises Archana. "With lower
profit margins and intensifying
competition, manufacturers
have to improve on their service,
performance and delivery."
An additional challenge will be
to optimally integrate distributors
and dealers within a complete
solution model. The technical
capabilities of distributors
will be vital in any solution-oriented
strategy. With advanced
technologies and sophisticated
machines, it is critical that there
be trained experts in key identified
regions.
Many large multinational
companies have started imparting
product knowledge to endusers.
Manufacturers have
attempted to maintain historical
relationships with endusers.
Continuous technological
upgrades, novel technologies
such as electron beam and
friction stir, and the introduction
of innovative base metals
have resulted in the enhanced
penetration of welding equipment
in India.
"Manufacturers should
improve their service portfolio
and broaden their market
reach," concludes Archana.
"They should increase their penetration
into new end-user
industries such as wind and
nuclear power and traditional
end-user industries such as fabrication
and automotives as well
as explore opportunities in other
general industries which have
only lately moved to higher
automation levels."