New Delhi

The machine
tools manufacturing sector was one of the worst-hit sectors during the COVID-19
pandemic. IMTMA expects the industry to grow around 8-10% due to infrastructure
spending and investments.

Anbu Varathan,
Director General & CEO, Indian Machine Tool Manufacturers’ Association
(IMTMA), commented that MSMEs in the machine tools manufacturing sector are
affected by the rise in raw material costs. The product delivery and supply
chain has been impacted with the costs of imported aggregate goods and
components rising.

He added that
the machine tools manufacturing sector is highly dependent on the auto industry
and is impacted in the same way as the auto industry. The machine tools
manufacturing sector was one of the worst-hit sectors during the COVID-19
pandemic and the resultant lockdowns. It recorded zero sales as the auto
industry was affected.

Chandrashekara
Bharathi, Founder, AceMicromatic Manufacturing Intelligence Technologies and a
member of IMTMA, said that the sector was also impacted by factors like the
rise in the cost of aggregates and exchange rates. The present situation
doesn’t allow the sector to pass this increase in costs to the customers, which
leads to their margins being hit.

During Q1 of
FY22, the auto sector saw impressive growth due to the ease of lockdowns and
the phased restart of factories and businesses. The Society of Indian
Automobile Manufacturers (SIAM) also noted that Q1FY22 witnessed a 113% growth
in domestic sales compared to Q1FY21.

Anbu further
noted that MSMEs are hesitant to invest in new digital technologies as they
evolve at a fast pace, require a large amount of capital investment and a ready
pool of workforce.

According to
IMTMA, the machine tools industry can expect an increase in demand due to
factors such as the current budget’s increased allotment for railways, power
and infrastructure, the newly recognised sectors for the PLI scheme and the RBI’s one-time loan recast
for MSMEs under stress by COVID-19.

IMTMA was formed
in 1946 and represents nearly 500 machine tool makers, which constitutes around
90% of the organised machine tools and allied equipment manufacturers in India.

Source – Financial Express

Image
Source: Image by Michael Schwarzenberger from Pixabay

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https://www.automotiveproductsfinder.com/news/rajesh-bhandari–machine-tool-industry-to-diversify-into-other-sectors/134488

https://www.automotiveproductsfinder.com/interviews/slow-growth-in-automotive-is-hurting-machine-tool-industry/123282