Machine tool industry set to invest Rs 3,000 cr in 3 years

Banglaore: The machine tool industry is set for an investment of Rs 2,000-3,000 crore in the next two to three years.

Even while the sector had its limitations in meeting the domestic demand, resulting in large dependence on imports, the sector was poised for an annual growth of 25 per cent. This would help in reducing imports while increasing its edge in the export market through modern technology induction and marketing strategies.

Addressing a press conference on Thursday to announce the IMTEX (Indian Machine Tool Exhibition) to be held here, Mr C.P. Rangachar, President of the Indian Machine Tools Manufacturers' Association (IMTMA), said that triggered largely by the automobile industry, the machine tool industry was poised to grow by 35 per cent this fiscal.

Mr Rangachar said the sunrise sectors such as the garments and gems and jewellery, furniture and medical equipment would be giving a further fillip to the industry, resulting in capacity expansion.

Though exports were marginal at Rs 50 crore, the increasing recognition of the sector from global companies should provide greater opportunities for contract manufacturing and even joint ventures adding to investments with latest technologies for the sector to grow faster.

'We need a vibrant machine tool industry that is sustainable to meet the competition,' he said while announcing IMTEX 2007, to be held here from January 18 to 24, he said.

The future focus


On IMTMA's vision for the sector, Mr Rangachar said the future focus would be on closing technology gap between Indian and international products through increased productivity, achieving higher consistency and accuracy, introducing modern safety concepts and enhancing research and development efforts.

To achieve the 35 per cent growth in the next two years, IMTMA would be leveraging the potential of industry-academia linkages for innovation and developing new products, concentrating on new concepts such as mechatronics and hard machining.

To generate Rs 5,000 cr biz

The biennial Indian Machine Tool Exhibition, to be held in Bangalore from January 18 to 24, is expected to generate business worth business worth Rs 5,000 crore, an increase of 64 per cent since its earliest meet in 1995.

The exhibition will be inaugurated by the Union Minister for Commerce and Industry, Mr Kamal Nath, at IMTMA's facility, the Bangalore International Exhibition Centre.

Held every three years, the week-long event has attracted 1,163 participants, with 47 per cent participation from overseas representing 25 countries, said Mr Shailesh Sheth, Media Chairman, IMTMA.