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 are
demanding automated equipment
to support higher productivity.
Robust expansion of the Indian
shipbuilding, construction and
energy, particularly wind power,
sectors will underline strong
growth of the welding market over
the medium- and long-term.
These were some of the findings
of a strategic analysis of the welding
equipment market by Frost &
Sullivan, the growth partnership
company. The market earned revenues
of $208 million in 2008 and
is estimated to reach $311.5 million
in 2015, Frost & Sullivan said.
"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," noted
Frost & Sullivan Senior Research
Analyst Archana Chauhan. "A key
driver boosting market revenues
has been the gradual move from
manual to automatic and semiautomatic
welding equipment."
The Indian welding industry has
generally been low technology
with infrequent innovation. However,
the adoption of automatic
and semi-automatic welding systems
has been rising in recent
years. At the same time, 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," Chauhan cautioned.
"With expanded imports,
the market share of domestic
participants is continually
declining in several industries,
especially automotive and transportation,
shipbuilding and the
white appliances."
Another challenge faced by
Indian welding equipment manufacturers
is the unorganised
sector that currently occupies
close to 50-55 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,"
Chauhan said. "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 end users.
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.