Taiwanese companies to participate in Make in India
Q. How Machine and Tools Manufacturing Companies will get advantage of the situation?
According to IMTMA India, the government of India is expected to boost manufacturing – one of achieving 25 % share in overall GDP by the year 2025 (from the present 16 %); to have concerted focus on technology and depth value addition; and to generate for the country a hundred million manufacturing jobs. The automotive industry, for instance, has set a focus to manufacture five million vehicles by 2015 and nine million by 2020. The auto component industry, likewise, is setting itself a target of manufacturing 145 billion US Dollars worth of ancillaries over the next five years. Similar is the story in the consumer durable segment as well as in the capital goods industry. There is equally a subtle shift in demand in infrastructure, energy, construction & material-handling, healthcare, besides defence, aerospace and medical engineering sectors. These industries are seeking more manufacturing technology solutions – some currently out of reach of Indian machine tool suppliers. This situation accelerate local manufacturers to expand production capacity and upgrading manufacturing technology. India, which is the world’s second largest by population, is a market with great growth potential and strong domestic demand. The Indian machine tool industry is ranked 14th and 10th in global production and use of machine tools, respectively. India accounts for machine tools worth 12,500 crores every year. About 40% of which are produced for the domestic market.
Q.What are the significant qualities in Taiwan made Machine Tools? Need to R & D work by their Industry?
The ability of Taiwan Machine Tools to compete with other countries without the support of a strong car industry or huge domestic demand depends entirely on Taiwan’s flexibility and adaptability. This ability to provide customized services underpins the exceptional competitiveness that is the hallmark of the Taiwan machine tool industry. Several factors have driven this success.
1 – INDUSTRY CLUSTERS
Taiwan is home to world-class industry clusters for the machine tool industry. Viewed from the air, there is a swath of countryside some 60km long and 14km wide that runs along the Dadu Plateau of central Taiwan.
This so-called Golden Valley:
- Home for more than 1,000 precision machinery manufacturers and upwards of 10,000 downstream suppliers
- Employs more than 300,000 people
- Has an annual output of $3 billion
- Has the highest output value per unit area and the highest density of any machine tool industry cluster in the world.
Without this cluster, Google’s solar farms in the desert would be unable to follow the sun; the top four equipment suppliers for the global semiconductor and display panel industries also use components from here. Without them, the semiconductor and display panel industries would find their supply chains cut. Car components for the German and Italian manufacturers, as well as gears for General Motors, Porsche and Hyundai, all come from this industry cluster. Even China, the world’s largest car market, principally depends on this Golden Valley of precision machine tools for its mold processing equipment. The Taiwan machine tool industry is even able meet the stringent requirements of Apple, which depends on this industry cluster as well as the Taiwan industry’s greater efficiency in comparison with even Japan or Germany to create its unique products.
2 – STRONG VALUE CHAIN
Under the guidance of Taiwan’s Corporate Synergy Development Center (CSD), a number of Taiwan-based machine tool companies have pooled their resources to create the M-Team Alliance. The Alliance strives to promote lean production and lean management through mutual observation and joint study, in order to raise quality and shorten delivery times throughout the Taiwan machine tool industry, with the aim of adopting a premium brand route to success. The Alliance will leverage the unique features of Taiwan’s Golden Valley to transition away from the past model of individual companies battling alone, in favor of more coordinated efforts to jointly create value, creating a new paradigm for the industry. The resulting focus on systematization, quality and image will allow the world to see the continual progress made by the Taiwan machine tool industry.
3 – SERVICE FOCUS
Service industries have always been strengths of Taiwan, and Taiwan’s machine tool and component manufacturers are applying Taiwan’s service model to manufacturing industries by providing customized products to meet the varied requirements of their diverse range of clients. They are also continuing to take on the challenge of providing even faster, shorter-distance service models in an effort to expand their global presence and establish new service points, with the goal of providing rapid, high-quality after-sales service to meet the individual requirements of their end clients as closely as possible. Most Indian machine tool makers, however, lack financial resources and technological know-how, making them less likely to satisfy market demand for more advanced models. Hence, these types of machine tool are being supplied from overseas.
Q. What is it is expected to be in the next 3 to 5 years ?
The production value of Taiwan’s machine tool industry is expected to increase 1.3%-1.5% by 2017. According to a trade report by the Department of Commerce, Ministry of Commerce and Industry of India, Taiwan is India’s top five machine tool suppliers in 2014. Machining centers, drilling, boring, milling machines, parts and components for metal cutting machine tools are the main types imported by India. Taiwan’s machine tools exported to India grew 10% in the first five months of this year. The Taiwanese machine tool industry is obviously the best partners of manufacturers in India.
Q. How much is machine tools contributing now and what it is expected to contribute in the next 3 to 5 years?
In the first six months of this year, Taiwan exported US$10.12 billion of machinery, including US$1.64 billion of machine tools.
Q. How it can help Indian government initiatives like Make in India? How they can facilitate the Make in India initiative?
Make in India aims to boost industrial development and upgrade of 25 local industries, including electrical and electronics, automotive, energy and aerospace sectors. As the backbone of Manufacturing, the machine tools industry plays a crucial role in national development. It has contributed immensely to growth in nearly all sectors of the economy. production in the industry is concentrated on customized and small scale machines with high precision that are used in producing various goods, from planes to automobiles, watches and computers. Taiwanese machine tools makers has been able to provide equipment needed in the manufacture of aerospace parts, auto parts, wind turbine parts, medical equipment and precision mold, which in turn have helped fuel India’s continuous economic growth.
Q. Can you please brief more on “ highlight the current condition of the Taiwan machine tool industry and future development goals in green and efficient manufacturing. Further cooperation between Taiwan and India will be explored as well.”
Basically, I have discussed with speakers to present the advantage of their products. There are 3 main points, 1. green productivity (energy-saving and enhancing productivity) 2. Efficient manufacturing means (Improving processing accuracy and reduce damage to the tool and machine) 3. the local agent relationship(ie. current agency could share how they work with Taiwan machine makers and what Taiwan can support to them such as training program or technology transfer ) But it depends they follow above contents to make presentation. Other trade data between Taiwan and India. Taiwan invest in India reach US 239.47 million; 49 projects (May 2015 by Taiwan Investment Commission, MOEA) and industry covers: food, shoes, computer, wholesale, retail, finance, insurance, real estate, mining , electronic and optical products, electrical equipment, machinery and equipment, motor vehicles and parts manufacturing, transportation, and other manufacturing industries. Taiwan manufacturers will have the opportunity to use this event to present their latest models and technologies. The event will also highlight the current condition of the Taiwan machine tool industry and future development goals in green and efficient manufacturing. Further cooperation between Taiwan and India will be explored as well.
Taiwanese companies plan to participate in Make in India Initiative
More than 70 Taiwanese companies have invested in India since 2013; bilateral trade swells to $ 6 billion in 2014
Buoyed by the positive global sentiment on India, Taiwanese companies especially those from the machine tool industry are planning to participate in the Indian government’s Make in India initiative. This comes even as bilateral trade between the two countries swelled to $ 6 billion in 2014 and over 70 Taiwanese companies have invested in India since 2013.
“We are extremely keen on supporting the Indian government’s Make in India programme which can be transformative in nature as far as manufacturing is concerned. As the backbone of manufacturing, the machine tools industry has the potential to play a catalyzing role in Indian manufacturing. Taiwanese companies can offer their machine tools in a broad spectrum of industries spanning aeroplanes, automobiles, watches, computers, auto ancillary, wind turbine parts, medical equipment and precision mould and help fuel India’s growth. Many of the sectors in which we have expertise are those that have been identified as priorities under the Make in India programme”, said Dr. Guann-Jyh Lee, Executive Director of Economic Division, Taipei Economic and Cultural Center in India.
The Indian government has unveiled an ambitious plan to increase the share of manufacturing in the GDP to 25 % from the present 16 % by 2022 and create 100 million additional jobs in manufacturing during the same period. The government has identified 25 sectors where India can become world leader under this programme. These include automobiles, chemicals, IT, pharma, textiles, ports, aviation, leather Tourism and hospitality, wellness, and railways. Taiwan was among India’s top five machine tool suppliers in 2014. Machining centres, drilling, boring, milling machines, parts and components for metal cutting machine tools are the main types imported by India. This is expected to go up in the coming year. Taiwan will have a major presence at the Delhi Machine Tools Expo 2015(DMTX), NEW DELHI Pragati Maidan from August 20-23.
Executives from leading machine tools makers including TONGTAI MACHINE & TOOL CO., LTD., SHE HONG INDUSTRIAL CO. LTD., CHIEN WEI PRECISE TECHNOLOGY CO., LTD. , MEGA Machine Co., Ltd. and FAIR FRIEND ENTERPRISE.CO.,LTD. will present the latest products, innovations and insights on industry trends at a press conference at the show on Thursday, August 20. The event christened “Taiwan machine tools speed up a better India”-is organized by the bureau of Foreign Trade and implemented by the Taiwan External Trade Development Council. The Taiwan External Trade Development Council (TAITRA) is the foremost non-profit trade promotion organization in Taiwan. Jointly sponsored by the government, industry associations, and several commercial organizations, TAITRA assists Taiwan businesses and manufacturers with reinforcing their international competitiveness and in coping with the challenges they face in foreign markets.
The unique feature of the Taiwanese machine tools has been that it has become globally competitive without enjoying the advantages of a large domestic market or the strong support of a local car industry. This industry is concentrated in clusters along the Dadu Plateau of central Taiwan which has been christened the Golden Valley. This region which is home to over 1000 precision machinery manufacturers and over 10,000 downstream suppliers employs more than 3,00,000 people and accounts for $ 3 billion in revenues. It has the highest output value per unit area and the highest density of any machine tool industry cluster in the world.
Without this cluster, Google’s solar farms in the desert would be unable to follow the sun. The top four equipment suppliers for the global semiconductor and display panel industries also use components from here & without them, the semiconductor & display panel industries would find their supply chains cut. Car components for the German and Italian manufacturers, as well as gears for General Motors, Porsche and Hyundai, all come from this industry cluster. Even China, the world’s largest car market, principally depends on this Golden Valley of precision machine tools for its mold processing equipment. The Taiwan machine tool industry is even able meet the stringent requirements of Apple and help it create its unique and innovative products. Taiwan machine tool industry has emerged as the preferred supplier to Apple in the face of stiff competition from traditional technology powers like Germany & Japan.
About TAITRA :
Taiwan External Trade Development Council (TAITRA) is globally recognized as Taiwan’s foremost non-profit trade promotion organization, with over 60 overseas offices around the world. For more than 40 years, TAITRA has been highly commended for its professional and outstanding services, offering a host of trade related services that cater to a variety of business needs. Partially supported by the government of Taiwan and various commercial and industrial associations, TAITRA has been entrusted to spearhead numerous government projects including the launch of the Taiwan Industry Image Enhancement Plan.
For more information
Web: mumbai.taiwantrade.com.tw
