How India's Machine Tools Industry Is Gaining Global Momentum

During an exclusive interaction with Adlin Pertishya Jebaraj, Correspondent at Industry Outlook, Wilson Thomas, Managing Director of Index Machine Tools India, discusses the rapid growth of India’s machine tools industry. He emphasizes the importance of embracing new technologies, maintaining high-quality standards, and ensuring timely deliveries to remain competitive in global markets.

Given the current global economic climate and supply chain disruptions, how is the machine tools industry in India being affected, and what strategies are companies employing to mitigate these challenges?

The machine tool industry is undergoing a huge transformation and is booming continuously compared to earlier times. Many leaders are satisfied with the businesses entering the country. However, it is still unclear why this sector has seen such significant growth over the last two years. Based on my experience in this sector, I would say this boom is primarily due to the large number of orders coming in from Europe.

The rising energy costs, which have been exacerbated by the ongoing war, have led to many small businesses in Europe shutting down or shifting their operations to India. At the same time, strategies like the 'China plus one' model have encouraged businesses to seek alternatives to China, making India a more attractive destination to fortify their operations, with the support and initiatives offered by the government.

Though the post-COVID years have been challenging, India is now realigning its path with the right strategies, establishing itself as a major player in the global market. This boom is particularly benefiting the machine tool customers in India.

What are the most significant operational or strategic challenges facing companies in the Indian machine tools sector today, and how are these challenges impacting profitability, market share, or innovation?

If India is able to deliver high-quality products comparable to those produced in Europe, it will create a massive surge in business growth. Over time, customers will increasingly invest in quality, a shift that has gradually been taking shape over the past 30 years.

In the past, there were no Coordinate Measuring Machines (CMMs) in the market, as they were considered extremely expensive. However, today they have become a basic requirement in most manufacturing setups. In this fast-paced world, machine tools have become an essential necessity. Currently, the machines offered by Indian manufacturers are state-of-the-art and may still be considered a luxury by some. However, sooner or later, they will become a necessity in the market.

Also Read: Skilled Labour Shortage in Machine Tool Manufacturing

How is the industry leveraging data analytics, IoT, and other digital tools to improve machine performance, predictive maintenance, and overall operational effectiveness?

This trend is gaining momentum rapidly. Machines are now beginning to respond clearly. A big example of this is predictive maintenance, a proactive strategy that allows us to understand machines more thoroughly. At one time, issues were only noticed after an incident occurred. At present, however, advanced technologies like predictive maintenance enable machines to identify and alert us when a particular part is weakening. This allows us to focus on where maintenance is needed, and even predict which spare parts will need to be replaced. This shift in approach helps businesses maintain high machine uptime, ensuring that productivity is not compromised.

What role does the quality and reliability of machine tools play in the overall competitiveness of Indian manufacturers, and how are the companies ensuring that the key components meet and exceed the international standards?

In most cases, when companies get contracts from abroad, time becomes a critical factor. Once delivery commitments are made, sticking to schedules becomes very important. In today’s business landscape, maintaining commitment to delivery timelines while balancing the entire supply chain is crucial. To meet these timelines, the entire supply chain must function seamlessly, enabling everyone to deliver products on time. This is particularly important for businesses dealing with European and American markets, where strict adherence to delivery schedules is expected.

Also Read: Emerging Material Science Trends Redefining Machinery Manufacturing

What's your long-term vision for the Indian machine tool industry, and what are the key milestones or achievements you hope to see in the upcoming years?

Looking ahead, more new technologies will come in and I strongly urge the industry to embrace innovation and adopt new technologies. They shouldn’t wait for somebody to adapt. Obviously, there are risks associated with adopting new technologies, as it will be the first time for understanding and implementing a tool. There could be some failures being an early mover. However, there is a huge potential upside if you are successful with the new technology.

My message to the industry is clear: we must adapt new technologies and embrace innovative solutions. Take China, for example—they are making a clear shift, advancing leaps and bounds ahead of us. We can no longer afford to sit back and observe. It's time to dive into new technology and start working with it.