India a Machine Market Venice,11th September 2015

Content

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Political and Economic Scenario

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Plastics and Rubber Machines in India

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Fit enough, good enough?

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Plastics exhibitions in India

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VDMA India

General Assembly - Venice 2015, 11th September

Political and Economical Scenario

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General Assembly - Venice 2015, 11th September

Political Scenario

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After 30 years – single party majority

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Slogan – “Ache Din” – Better days ahead

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Absolute Majority in Lok Sabha (lower house); Minority in Rajya Sabha (upper house)

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Maximum governance, Minimum government

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Ease of Doing Business

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Cooperative Federalism

General Assembly - Venice 2015, 11th September

Present Economical Scenario 9 8 7 6 5 2013 2014

4

2015 2016 (est)

3 2 1 0

Fiscal Deficit as Current % of GDP Account Deficit as % of GDP Page 7

Inflation- CPI (% Yr end)

General Assembly - Venice 2015, 11th September

Inflation-WPI (% Yr end)

GDP Growth % Yr

Make in India Campaign Indian Prime Minister Mr. Narendra Modi’s 'Make in India' campaign Summary

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An increase in the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022.

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To create 100 million additional jobs by 2022 in manufacturing sector.

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To develop 100 smart cities in India by 2020.

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Skill India’s aim is to provide training & skill development to 500 million youngsters by 2020.

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A new ‘National Industrial Corridor Development Authority’ is being created to coordinate, integrate, monitor and supervise development of all Industrial Corridors.

General Assembly - Venice 2015, 11th September

Plastics and Rubber Machines in India

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General Assembly - Venice 2015, 11th September

Key Clusters Of Plastic Processing Sectors In India Key clusters for plastic processing sectors : packaging, medical and automotive

Key clusters for plastic processing sectors : Construction (Pipe) and consumer /household goods

NCR

NCR

Kanpur Ahmedabad

Ahmedabad Sanand

Vadodara

Rajkot

Pithampur

Mumbai

Mumbai Pune

Kolkata Aurangabad

Pune Hyderabad

Bangalore Hosur

Chennai

Bangalore

Chennai

Automotive Packaging

Construction (Pipe)

Medical/Pharma Page 8

General Assembly - Venice 2015, 11th September

Source: BDB analysis

Consumer goods/household goods

Deliveries to India

25000

Worldexports Total

EUROMAP Total

Worldexports P&R

EUROMAP P&R

mill. €

800 mill. €

700 20000 600 500

15000

400 10000

300 200

5000 100 0

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Core Machinery

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General Assembly - Venice 2015, 11th September

Exports from India Total Machine Exports

Plastics and Rubber Machinery

10.000

250 mill. €

mill. €

200 7.500 150 5.000 100 2.500 50

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Core Machinery

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General Assembly - Venice 2015, 11th September

EUROMAP Deliveries to India EUROMAP Total

Injection Moulding Machines

Extrusion Machines

Blow Moulding Machines

400

60 mill. €

mill. €

50 300 40

200

30

20 100 10

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Core Machinery

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General Assembly - Venice 2015, 11th September

China Deliveries to India Injection Moulding Machines

Extrusion Machines

Blow Moulding Machines 35 mill. €

30 25 20 15 10 5

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Core Machinery

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General Assembly - Venice 2015, 11th September

German Deliveries to India Injection Moulding Machines

Extrusion Machines

Blow Moulding Machines 35 mill. €

30 25 20 15 10 5

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Core Machinery

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General Assembly - Venice 2015, 11th September

Italian Deliveries to India Injection Moulding Machines

Extrusion Machines

Blow Moulding Machines 15 mill. €

13 10 8 5 3

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Core Machinery

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General Assembly - Venice 2015, 11th September

Is Fit enough, good enough?

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General Assembly - Venice 2015, 11th September

Customers Perception On Technology Vs Price

High

Indian MSME customers across all application sectors are still considering the price as a key factor while selecting a brand due to their low purchasing power

Building / Construction – MSME companies

Other household – MSME companies

Price sensitive

Customers preference level towards low priced machines

‘just fit’ technology

Packaging – MSME companies

Medium

Medical – MSME companies

Auto components – MSME companies

Building / Construction – Large companies White & brown goods – Large companies

Low

Low MSME – Micro, Small & Medium Enterprises

However, in sectors like auto components and packaging, customers are going for used machines from major brands to meet their technical requirements at low cost

Packaging – Large companies

Auto Components – Large companies Medical – Large companies

Medium Technology preference

high sophisticated machines on premium level

High

Customers preference level towards high end technology Source: BDB analysis

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General Assembly - Venice 2015, 11th September

Fit enough is good enough?

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Increasing volume and precision generates demand for high class machines.

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It reduces energy consumption.

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Adherence to the delivery commitment with reduced production time with higher tolerance.

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It ensures zero wastage in operation.

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It helps in process consistency thus improving the quality output.

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Shift in preference from commodity injection moulding to performance injection moulding are noticed.

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New technology machines with proven reliability are finding preference.

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MSME customers consider price over technology irrespective of any sector

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Large customers from auto component, medical and packaging sector prefer technology over price.

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India niche market – Limited Volume

General Assembly - Venice 2015, 11th September

Plastics exhibitions in India - a close call!

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General Assembly - Venice 2015, 11th September

Major Exhibitions In India For Plastic Processing Machinery Satisfaction scale: 1= Highly dissatisfied; 5 = Highly satisfied

Perception on major exhibition

PLASTINDIA is one of the largest pure plastics exhibitions on the global plastics scene:  2000 Exhibitors.  Participation of 40 Countries with 1,50,000 Business Visitors  Held every 3 years  Mounted and spread across 1,25,000 sq. mtrs area

4,6

4,7

PLASTINDIA Suppliers

4,2

4,4

PLASTIVISION Plastic Processors

PLASTIVISION INDIA is the 2nd Largest Plastics Exhibition in India :  1500 Exhibitors.  Participation of 25+ Countries with 1,25,000 Business Visitors  Live Demonstration of Machines for Moulds, Printing & Packaging Products.  Emerged as one of the top 10 global Plastics Exhibition.  Mounted and spread across 90,000+ sq. mtrs area.



PLASTINDIA is considered as the key exhibition for the plastic processing machinery in India

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Plastic processors are perceiving that PLASTINDIA is the key source for information on the new technology and the products

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Apart from the Indian suppliers, the MNC suppliers are also using these exhibitions as a platform to reach out their customers in Indian market

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General Assembly - Venice 2015, 11th September

Conclusion => India back on track!

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General Assembly - Venice 2015, 11th September

VDMA India

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General Assembly - Venice 2015, 11th September

Rajesh Nath, Managing Director VDMA India Head Office GC-34, Sector-III, Salt Lake City Kolkata Telephone +91 33 3219522 E-Mail [email protected]

VDMA India Contacts

Sumit Sharma, Regional Manager VDMA Noth India Office C-25, Sector-61 Noida Telephone +91 120 4255029 E-Mail [email protected]

Jamly John, Regional Manager VDMA West India Office 102, Jaimitra, Pragati Nagar, M. G. Road No. 6 Mumbai Telephone +91 981 9045109 E-Mail [email protected]

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General Assembly - Venice 2015, 11th September

Thank you for Your Attention

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General Assembly - Venice 2015, 11th September