German machine tools showcased in India for the fourth time

Frankfurt am Main, 23 March 2016. – The German machine tool industry continues to arouse keen interest in India. For the fourth time in succession, the VDW (German Machine Tool Builders’ Association) has joined forces with the German-Indian Chamber of Industry and Commerce to organise one-day symposia on 15 March in Chennai and on 17 March in Pune.
17 front-ranking companies like DMG Mori, Emag, Gehring, Gleason-Pfauter, Heckert, Heller, Hermle, Kapp, Leistritz, MAG, Mauser, Open Mind, Peiseler, Profiroll, Samag, Schwäbische Werkzeugmaschinen and Waldrich Coburg showcased their products, solutions and services for modern-day industrial production operations. Around 240 customers from the automotive industry and its component suppliers, the general mechanical engineering sector, and the aviation industry accepted the invitation in Chennai; 220 customers came to Pune.

“This is already the fourth occasion that the VDW has been represented in two cities at a time with its symposia in India. This has proved to be a good idea, because of the country’s size and its regional distribution of industrial activity,” explains Klaus-Peter Kuhnmünch, who, at the organiser VDW, is responsible for the technology symposia.

India’s machine tool market offers huge potential

With a market volume of almost 1.8 billion euros, India came eighth in the world rankings for machine tools in 2015. The VDW’s British forecasting partner, Oxford Economics, expects the Indian economy to pick up speed in the years ahead, with industrial production output and capital investment both rising. The machine tool market is predicted to expand by 9 to 10 per cent in both 2016 und 2017. The growth of the Indian market is directly linked to improvements in the local infrastructures. “The slogan ‘Make in India’ is aimed at central investments on the spot, and creates ideal conditions for direct investments from abroad. We want to benefit directly from this welcome trend,” emphasises Gerhard Flores, Head of Technological Development and Patents at Gehring Technologies GmbH, Ostfildern, who was attending the VDW’s symposium.

German manufacturers see a turnaround

It was in 2007 and 2008 that the German machine tool sector achieved its biggest successes in India. Exports reached a figure of just under 300 million euros. In the two subsequent years, the worldwide financial and economic crisis caused them to shrink by a quarter. In 2014, for example, the volume of exports was a mere 150 million euros. In 2015, however, signs of a turnaround emerged, which the sector is keen to benefit from. To quote Dr. Manfred Berger, Executive Vice President Global Sales at MAG IAS GmbH in Eislingen: “It’s primarily the automotive industry and its component suppliers that are our principal focus in India. We are anticipating significant growth in these customer sectors in the future. International component suppliers, in particular, are exhibiting growth potential of exceptional dynamism.”

Japan’s traditional role as leader under attack

The most important foreign vendor nation is, of course, Japan, which in 2014 supplied 28 per cent of India’s imports. The German manufacturers, by contrast, as the second-largest supplier category, upped their share from 13 to 14.5 per cent. The order situation in India, too, recorded growth of 41 per cent in 2015 compared to the preceding year. Nonetheless, Japan’s leading position in India has strengthened over the past decade. The German machine tool manufacturers active in India are aiming to successively increase their market shares in relation to Japan. The sophisticated pricing structure plays a crucial role here as an important influencing factor. Maximilian Waizenegger, Regional Sales Manager at the machinery manufacturer Maschinenfabrik Berthold Hermle AG in Gosheim, explains: “India has for many years now been a very price-sensitive market. German machine tools are regarded as too expensive. We are increasingly observing, however, that more expensive machines are also being purchased, and that awareness levels for the importance of high quality on the spot are rising very significantly.”

Jens Wunderlich, Authorised Signatory at Profiroll Technologies GmbH in Bad Düben, confirms this statement, and also outlines two strategic approaches for how, in his view, it’s possible to handle the Indian market better in future: “Firstly, German manufacturers have to be prepared to provide technological support on the spot, extending above and beyond the needs of other markets. Secondly, as a company in India, you have to be prepared to modify your products to suit he market’s needs on the spot, which also means slimming down the machines to their essentials in line with the customer’s actual requirements, and providing local service support.”

Symposia are ideal platforms

In order to enter into direct dialogues with Indian customers, and broker new business relationships, the VDW has for years now been offering its successful technology symposia in India. Firms like DMG Mori, Emag, Gehring, Heller and Profiroll are already involved for the fourth time.

For Viktor Schulze, Sales Manager at Samag Saalfelder Werkzeugmaschinen GmbH in Saalfeld, the concept is a cogent one. “The symposia are a brilliant platform, not least for the smaller German vendors. The customers come to us, and are keenly interested. During the symposia we had an opportunity to conduct intensive conversations. In addition, it’s a great to get to know more about the Indian market. Otherwise you’d have to do that by yourself.” Dr. Berger of MAG IAS adds: “The visitor quality in Chennai and Pune was very good, and I’m very satisfied with the entire event.”

The event itself, and the product solutions being showcased by the German companies concerned are being well received by the Indian customers. K. Mohan, Managing Director at the Indian automotive component supplier Sep India PVT Ltd in Hosur, puts it succinctly: “The symposium is a unique opportunity to familiarise yourself with the diversity of German machine tools. In contrast to a trade fair, you find out all you need to know in a single day, and can enter into direct discussions with the vendors concerned.”

Ashol Aseri, Vice President of the Aviation Division at Maini Precision Products Limited in Bangalore, is primarily impressed by the performance spectrum of the German machine tools on show, and says: “The automotive and aviation industries need maximised quality. Only German vendors can meet these expectations in terms of precision, efficiency and high availability levels. Which is why we are only prepared to consider machines from Germany.”

German machine tool industry opts for can-do associates

The VDW’s symposium was organised in conjunction with the German-Indian Chamber of Industry and Commerce. In the view of Hubert Reilard, Chamber of Foreign Trade President in India, the Indian subcontinent is an important market for the German mechanical engineering sector. Under the new government, particularly, India’s industrial sector is achieving notable development, and German vendors, with their production capabilities, could assume a crucial role for the country’s upcoming industrialisation thrust, he emphasises.

Klaus-Peter Kuhnmünch of the VDW confirms this, and adds: “We as the German machine tool industry are confident that India will, in the future too, continue to develop with vigorous dynamism. Chennai and Pune, in particular, are home to the centres of India’s automotive industry and its component suppliers.” So the association will also be present here in the future for the mutual benefit of Indian customers and German machine vendors.

Background:

For twelve years now, the VDW has been organising German technology symposia in important growth markets. They aim to assist the German machine tool industry to penetrate these markets and to showcase for the users there the sector’s professional competence and corporate capabilities. So far, symposia have been organised in Brazil, China, India, Mexico, Poland, Romania, Russia, Thailand, Turkey and South Korea. In line with sustainability thinking, the symposia are repeated at certain intervals.

Author: Manuel Löhmann, VDW Press and Public Relations,
Tel. +49 69 756081-83, [email protected]

For further information: Klaus-Peter Kuhnmünch, VDW,
Tel. +49 69 756081-37, [email protected]