MANUFACTURING

For updated information, please visit www.ibef.org October 2017

Table of Content

Executive Summary……………….………..3

Advantage India…………………..…...……4

Market Overview …………….………….….6

Porters Five Forces Framework………….14

Recent Trends and Strategies…….……..15

Growth Drivers and Opportunities…….....18

Case Studies.....…………………………...26

Industry Organisations …….......…………31

Useful Information……….……….......…...33
 EXECUTIVE SUMMARY


Organised manufacturing is the biggest private sector employer in India. Overall, more than 30 million
people are employed by the sector (organised and unorganised) and will become the engine of growth as it
tries to incorporate the huge available workforce in India most of which is semi-skilled.
Pillar For
Economic Growth 
The sector will push growth in the rural areas where more than 5 million manufacturing establishments are
already running. This will be the alternative available to the new generation of farmers.

Government aims to achieve 25 per cent GDP share and 100 million new jobs in the sector by 2022.


India’s manufacturing industry is already moving in the direction of industry 4.0 where everything will be
connected and every data point will be analysed. Indian companies are at the forefront of R&D and have
already become global leaders in areas such as pharmaceuticals and textiles. Areas such as automation
Potential To Become A and robotics also receiving the required attention from the industry.
Global Hub 
Large international industrial production such as Cummins and Abbott already have manufacturing bases in
the country.

Improvement in port infrastructure has also been a focus point of the government for the same reason.


India has all the necessary ingredients for its major industrial push – a huge semi-skilled labour force,
multiple government initiatives like Make in India and high investments and a big domestic market.

Competitiveness Necessary support infrastructure is being developed with areas such as power being the prime focus.

Government incentives like free land to set up base and 24*7 power supply are making India competitive on
a global scale

Source: Central Statistics Office, FICCI, PwC, Economic Survey of India

3 Manufacturing For updated information, please visit www.ibef.org

Manufacturing
ADVANTAGE INDIA

 
Huge domestic market with a Investments in the Indian manufacturing
rapidly increasing middle class and sector have been on the rise, both
overall population.
domestic and foreign. FDI in the sector
 increased 99 per cent to US$ 2.3 billion
By 2030, Indian middle class is expected between April – June 2017 from US$
to have the second largest share in global 1.16 billion during the corresponding
consumption at 17 per cent. period in FY17.

Most sectors are open to 100 per cent FDI
under automatic route.

ADVANTAGE
INDIA

National Investment and Manufacturing
 Zones developed to create an
Increasing share of young working
ecosystem for industries in India.
population in the total population. India
can achieve its full manufacturing 
Initiatives like ‘Make in India’ and sector
potential as it looks to benefit from its specific incentives to various
demographic dividend and a large manufacturing companies, aiming to
workforce over the next 2-3 decades. make India a global manufacturing hub.
th
 A resource-rich country with 4 largest 
Skill India, a multi skill development
reserves of coal in the world and immense
programme has been started to equip
potential for renewable energy like solar the workforce with the necessary skills
and hydro, ready to meet the needs of required by the sector.
growing industry.
5 Manufacg

MARKET
OVERVIEW
 EVOLUTION OF THE INDIAN MANUFACTURING
SECTOR

Pre Independence 1948-1991 Post 1991 reforms Present

   
Most of the products were Focus of Indian government Indian markets were opened Make in India campaign
handicrafts and were on basic and heavy to global competition with the was launched to attract
exported in large numbers industries with the start of manufacturers and FDI.
LPG reforms and gave way to
before the British era started five year plans. private sector entrepreneurs 
 as license raj came to an end. Government is aiming to
The first charcoal fired iron

A comprehensive Industrial  establish India as global
making was attempted in Services became the manufacturing hub through
Tamil Nadu in 1830. Policy resolution announced in
1956. Iron and steel, heavy engines of growth while the various policy measures
 engineering, lignite projects, industrial production saw and incentives to specific
India’s present day largest and fertilizers formed the basis volatility in growth rates manufacturing sectors.
conglomerate Tata Group of industrial planning. during this period. 
started by Jamsedji Tata in 70 per cent of manufacturing
1868.   units under the private sector.
Focus shifted to agro- MSMEs in the country
 were given a push through
Slow growth of Indian industries as a result of many
government’s policy
industry due to regressive factors while license raj grew measures.
policies of the time. in the country and public
 sector enterprises grew more 
inefficient. The industries lost GVA from manufacturing grew
Indian industry grew during
their competitiveness. at 9.87 per cent between
the two world war periods in FY12 and FY17 at current
an effort to support the prices.
British in the wars.

Note: MSME – Micro, small and Medium Enterprises, FDI – Foreign Direct Investments
Source: data.gov.in, Central Statistics Office, Indian Express

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 SUB-SECTORS UNDER MANUFACTURING

As per National Industrial Classification, following 23 activities make up the manufacturing sector in India:

Manufacturing

Fabricated metal products,

Food products Paper and paper products except machinery and
equipment

Printing and reproduction of Computer, electronic and optical

Beverages
recorded media products

Coke and refined petroleum

Tobacco products Electrical equipment
products

Chemicals and chemical

Textiles Machinery and equipment n.e.c.
products

Pharmaceuticals, medicinal Motor vehicles, trailers and semi-

Wearing apparel
chemical and botanical products trailers

Leather and related products Rubber and plastics products Other transport equipment

Wood and products of wood and cork, Other non-metallic mineral Other manufacturing which
except furniture; manufacture of articles products includes jewellery, bijouterie and
of straw and plaiting materials related articles, musical
instruments, sports goods,
Furniture Basic metals games and toys, medical and
dental instruments and supplies

Source: udyogaadhaar.gov.in

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 GROSS VALUE ADDED

 port traffic (million tonnes)

Indian manufacturing sector’s Gross Value Added at basic prices
based on 2011-12 price series was US$ 350.4 billion in 2016-17. VisakhapatnamGVAbasic price at 2011-12 prices

Manufacturing sector grew at a CAGR of 9.87 per cent between CAGR 9.87%
FY12 and FY17. 400.0

The sector grew 9.33 per cent in FY17.
350.0

The Wholesale Price Index, in respect of manufactured goods grew
4.4 per cent 2016-17. 300.0

250.0

200.0

218.8

266.0

292.4

350.4
244.1

320.5
150.0

100.0

50.0

0.0

FY13

FY14

FY15

FY16
FY12

FY17
Source: MOSPI

9 Manufacturing For updated information, please visit www.ibef.org

 MANUFACTURING SECTOR – PERFORMANCE IN
COMPARISON WITH OTHER SECTORS


Gross Capital Formation simply means capital accumulation Gross Capital Formation at 2011-12 prices
over a time period through additions in physical assets such as
equipment, transportation assets and electricity. This serves as an
indicator of the investment activity in a sector.
180.00

Indian manufacturing sector recorded second highest gross
capital formation behind Real Estate at US$ 102.96 billion in 160.00
2015-16 based on constant prices .

156.84

153.10
 140.00
The sector’s contribution to the Indian Gross Domestic Product

126.78

123.12

131.85
was 16.51 per cent in 2016.
120.00

100.00

102.96
95.46

96.26

90.69

97.04
80.00

60.00

40.00

42.51

44.15
38.97

43.06

41.14
20.00

0.00
FY12 FY13 FY14 FY15 FY16

Manufacturing Real Estate Agriculture, Forestry & Fishing

Source: Central Statistics Office, World Bank

10 Manufacturing For updated information, please visit www.ibef.org

 INDUSTRIAL PRODUCTION


The Index of Industrial Production (IIP) is prepared by the Annual Growth Rates of IIP (%) at Sectoral level
Central Statistics Office to measure the activity happening in
three industrial sectors namely Mining, Manufacturing, and
Electricity.
20.00

It is the benchmark index and serves as a proxy to gauge the
growth of manufacturing in India since manufacturing alone has
a weight of 77.63 per cent in the index. 15.00


14.80
The manufacturing component of the IIP recorded 4.4 per cent
growth in FY17 and 1.6 per cent growth between April and
August 2017. 10.00


The production levels are expected to pick up growth again as
the Goods and Services Tax (GST) has finally been
implemented. 5.00

4.00

3.90

4.30

3.00
5.70
5.30

1.60
3.30
4.80

3.60
3.60
6.10

4.90
5.80

6.20
0.00

1
-5.30FY13

-1.40FY15
FY14

FY16

FY17

FY18
-5.00

-10.00

Mining Manufacturing Electricity

1
Note: From April to August 2017

11 Manufacturing For updated information, please visit www.ibef.org

 ROLE IN EMPLOYMENT

 Employment In Organised Public and Private Sector

The manufacturing sector in India has been the largest
organised employer with 5.33 million people employed by the Manufacturing (in million)
sector in 2012.

 6.00
A large segment of the sector is still unorganised. As per the
sixth economic census 2013, the manufacturing sector
employed 30,357,273 persons. Of these, 13.64 million people
were employed in the rural areas and 16.71 million in the urban 5.00
areas.

4.97

5.20

5.18

5.40

5.53
4.75


4.55
The National Manufacturing Policy 2011 aims to create 100
million jobs by 2022. 4.00

3.00

2.00

1.00

1.09

1.09

1.04

1.07

1.02
1.06

1.07
0.00
2006

2007

2008

2009

2010

2011

2012
Public Sector Private Sector

12 Manufacturing For updated information, please visit www.ibef.org

 FOREIGN INVESTMENTS FLOWING INTO THE
SECTOR

 FDI Equity Inflows In Manufacturing Sub-Sectors From April

100 per cent FDI is approved in the sector through the automatic Visakhapatnam port traffic (million tonnes) 2000 To June 2017
route under the current FDI Policy. (US$ billion)

 20
In August 2017, Department of Industrial Policy and Promotion
released the consolidated FDI Policy and a new industrial policy is 18

17.39

14.99

13.97
expected by October 2017. This will improve technology transfer in the 16
sector as well as investment opportunities in startups.
14

The FDI equity inflows to the Indian manufacturing sector have been 12
increasing over the years with US$ 6.91 billion coming in 2016-17.
10
 8
The automobile sub-sector has received FDI inflows of US$ 17.39

7.81

6.77

5.24
billion between April 2000 and June 2017 while the drug and 6
pharmaceutical manufacturing has received US$ 14.99 billion over
4
the same period.
1.79
2


2.55
The chemical manufacturing sector (excluding fertilizers) has also 0
received high inflows totalling to US$ 13.97 billions.

Out of the 10 highest FDI investment avenues, these three have

Drugs & Pharmaceuticals

been manufacturing activities.

Electrical Equipments
Automobile Industry

Food Processing
Chemicals*

Electronics
Cement

Textiles
Source: Department of Industrial Policy and Promotion

13 Manufacturing For updated information, please visit www.ibef.org

 PORTER’S FIVE FORCES FRAMEWORK ANALYSIS

Threat of Substitutes

 High – Threat of substitutes is high

as there are a lot of players with
similar products within a particular
sector of the manufacturing industry.

Competitive Rivalry Bargaining Power of Buyers

Bargaining Power of Suppliers
 Low – Bargaining power of suppliers  Medium – Competitive rivalry is  High – Bargaining power of buyers
is low as there are many suppliers; medium as it depends from sector to is high as there are a lot of players in
and the order quantity is bulk and sector; few sectors have high the industry and there is very low to
the amount is quite high, and the competition and few have low. no switching cost involved.
companies can switch to other However, most of the sectors under
suppliers. the manufacturing industry have few
established players that constitute
the major share and remaining share
is taken up by the small players.

Threat of New Entrants

 Low – Threat of new entrants is low

as the cost of setting up a factory or
plant is quite high, so it is not easy
Positive Impact for new players to enter the industry.
Neutral Impact

Negative Impact

14 Manufacturing For updated information, please visit www.ibef.org

 Manufacturing

RECENT TRENDS
AND STRATEGIES
 NOTABLE TRENDS IN INDIA’S MANUFACTURING
SECTOR


Major Investments As per India Manufacturing Barometer 2017*, more than 50 per cent of respondents in the industry are planning major
and Expansion investments and 62 per cent are planning to expand into foreign markets. Along with major investments consolidation is
Into New Markets happening in sectors like cement.

 Popularly knows as 3D printing, this new manufacturing technology uses digital models to create products by printing
Additive layers of materials. This has huge potential in India with the rise of mega projects coming up. Indian IT major Wipro in
Manufacturing collaboration with EOS manufactured India’s first additive manufacturing engineered component for ISRO’s GSAT19
communications satellite launch in June 2017.


With the rise of IoT in consumer tech, manufacturing sector has also started implementing this new network of sensors
Industrial Internet and actuators for data collection, monitoring, decision making and process optimisation over internet infrastructure .
of Things (IIOT) Data is a huge component of this whole setup and Indian companies have a lot of potential in this area with many large
and Industry 4.0 companies already betting on big data and analytics. As an example, Indian Railways will be rolling out locomotives
with solutions like remote diagnostics and proactive predictive maintenance and these trains will be part of a wider
ecosystem connected to industrial internet.

Advanced 
While standalone robotic workstations are already common place even in Indian companies, advanced robotics use
Robotics enhanced senses, dexterity, and intelligence to automate tasks or work alongside humans.

Note: ISRO – Indian Space Research Organisation, * - by PWC

Source: PWC India Manufacturing Barometer, FICCI, Bloomberg Quint

16 Manufacturing For updated information, please visit www.ibef.org

 STRATEGIES ADOPTED


Reliance Industries is using big data and analytics to optimise its operations and write applications for customers,
based on more than 30 years of data.
Innovation

As of November 2016, the Ministry of Textiles signed MoUs with 20 e-commerce firms to engage with various
handloom and handicraft clusters.


Focus on During Textiles India 2017, the Ministry of Textiles signed 65 memorandum of understandings (MoUs). MoUs were
backward signed between various domestic and international organisations from industry and government; three of the MoUs
signed are G2G MoUs. The MoUs signed relate to exchange of information and documentation, Research and
integration Development, commercialisation of handloom products and silk production, cooperation in Geo textiles, skill
development, supply of cotton and trade promotion with overseas partners, etc.


Focus on forward In 2015, Maruti Suzuki launched its premium retail outlets named ‘Nexa’ to differentiate from its old retail outlets. This
integration strategy has been adopted to market cars that are more premium than the budget ones Maruti has been known for.
With this they can operate in two segments with one established brand name.


The Government of India has been pushing for greater technology transfers and collaborations along with more FDI
and domestic production.
Collaboration 
Tata Advanced Systems is collaborating with the world’s largest defence contractor Lockheed Martin to manufacture the
F-16 fighter jets in India while the Adani Group has also entered the sector by forming a joint venture with Israel-based
Elbit Systems.

Source: Annual Reports and Company Presentations, Aranca Research

17 Manufacturing For updated information, please visit www.ibef.org

 Manufacturing

GROWTH DRIVERS
AND OPPORTUNITIES
 GROWTH DRIVERS FOR MANUFACTURING IN INDIA

Government Public Private

Initiatives Partnerships

Growth Drivers
Domestic
International

Consumption Investments

Huge Labour Pool

19 Manufacturing For updated information, please visit www.ibef.org

 MAKE IN INDIA INITIATIVE


Make in India initiative was launched in 2014 to encourage Indian as well as multi-national companies to manufacture in India. After the launch of
the programme, India became the top destination globally for Foreign Direct Investment(FDI) in 2015.

It focuses on 25 sectors of the economy and 100 per cent FDI is permitted in all these sectors except space, defence and new media.


A Make in India week covering various sectors was held in February 2016 which was attended by government and business delegations from
over 70 countries. By the end of the event investment commitments of over US$ 240 billion had been received.


Special cells called ‘Japan Plus’ and ‘Korea Plus’ have been made under the initiative to facilitate investments and fast track proposals from
Japan and Korea respectively.

Five industrial corridors are being developed across the country which will act as supporting infrastructure to the manufacturing sector.


In May 2017, construction of 10 Pressurised Heavy Water Reactors was approved at an estimated cost of US$ 11 billion which is expected to
create 33,400 jobs.


In June 2017, appliance maker Midea announced its plan to construct a new manufacturing facility in Pune with an investment Rs 800 crore (US$
124.17 million).


In August 2017,the government announced a new Consolidated FDI Policy. The policy allows start-ups to raise money from Foreign Venture
Capital Investors (FVCI’s) by issuing instruments such as convertible notes.


Since the launch of ‘Make in India’, India has moved up 12 spots from 142 in 2015 to 130 in 2017 in the World Bank’s Ease of Doing Business
rankings.

The initiative has led to a rise in India’s total FDI inflows from US$ 60.1 billion in 2016-17 to US$ 34.9 billion in 2014-15.

Source: Bloomberg, Economic Times

20 Manufacturing For updated information, please visit www.ibef.org

 SKILL INDIA INITIATIVE


Skill India Campaign was launched in 2015 and aims to train over 400 million people in various skills. It involves various schemes such as
National Skill Development mMssion, Pradhan Mantri Kaushal Vikas Yojana and National Policy for Scheme Development and Entrepreneurship.

Budget 2017-18 aims to extend Pradhan Mantri Kaushal Kendras from 60 to 600 districts of the country and also establish 100 India International
Skills Centres. These centres would offer advanced training and courses in foreign languages.

The government allocated US$ 620.85 million for Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP)
which will impart market relevant training to 35 million youth.

In Budget 2017-18, US$ 341.47 million was also allocated for the next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE)
which aims to improve quality and market relevance of training provided in Industrial Training Institutes(ITI’s).

As of April 2016, there were 13,105 ITI’s in India. Out of these around 17.5 per cent were government run while other 82.5 per cent were private.

Till July 2016, 1.79 million people had been enrolled for training under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and 1.19 million people
had been certified.

As per Budget 2017-18, mason training will be provided to 0.5 million people by 2022, with an immediate target of 20,000 people.

Source: Budget, Economic Times, Media sources, Aranca research

21 Manufacturing For updated information, please visit www.ibef.org

 STARTUP INDIA


Startup India campaign was launched in 2015 to encourage startups in India and provide policy support to startups.

Under the Startup India action plan a startup is an entity which is headquartered in India, has been opened less than five years ago and has
revenue less than US$ 3.88 million.

There are various benefits offered to registered startups under the scheme:

• As per the scheme no inspection regarding labour laws would be carried out for three years. Also, only self certification is required for
environmental law compliance.

• Startups can claim an 80 per cent rebate on their patent costs and get protection for Intellectual Property Rights (IPR’s).

• Income Tax exemption is available for first three years after obtaining certificate from Inter-Ministerial Board. Capital Gains Tax exemption is
also available if the funds are invested in a fund of funds recognised by the government.

• Startups in manufacturing sector are exempted from the criteria of prior turnover/experience without relaxation in quality standards or technical
parameters in public procurement.

Japanese firm Softbank pledged total investments of US$ 10 billion in startups. It has already invested US$ 2 billion in India.

In 2016, Oracle announced setting up of 9 incubation center's across the country.


Budget 2017-18 reduced the Income tax from 30 per cent to 25 per cent for companies with annual turnover of up to US$ 7.76 million.

Source: Media sources, Aranca research

22 Manufacturing
For updated information, please visit www.ibef.org
 NATIONAL MANUFACTURING POLICY


National Manufacturing Policy was introduced in 2011. It aims to increase the share of Manufacturing sector in India’s GDP to 25 per cent and
create 100 million jobs by 2021.

The policy was introduced to create an enabling policy framework and provide incentives for infrastructure development on Public Private
Partnership (PPP) basis.

Under the policy, National Investment and Manufacturing Zones(NIMZ’s) have been conceived as large industrial townships managed by a
Special Purpose Vehicle(SPV). These SPV’s would ensure planning of the zones, pre-clearances for setting up industrial units and undertaking
other specific functions.

Fourteen NIMZ’s have already been granted ‘in principle’ approval while four of them have been given final approval.

Central and State governments will provide exemptions, subject to fulfillment of conditions by the SPV, from compliance burdens for industries
located in these zones.

Exemption from Capital Gains Tax on sale of plant and machinery will be granted in case of re-investment of the capital gain amount for purchase
of plant and machinery within the same or different NIMZ within three years of sale.

A Technology Acquisition and Development Fund(TADF) has been launched for acquisition of appropriate technologies, creation of a patent pool
and development of domestic manufacturing of equipment's for reducing energy consumption.

In 2016, eight NMIZ’s were announced to be developed along the Delhi-Mumbai Industrial Corridor. Other than these, as of April 2017, fourteen
NIMZ’s have been granted ‘in-principle approval’, while three of them have been granted final approval by the government.

US$ 1.4 million has been allocated for Scheme for implementation of National Manufacturing Policy in Budget 2017-18.

Source: Media sources, Aranca research

23 Manufacturing For updated information, please visit www.ibef.org

 IMPACT OF GST ON MANUFACTURING SECTOR


Goods and Services Tax (GST) is expected to provide a major boost to the manufacturing sector. It has subsumed various taxes that were earlier
imposed on manufacturers. Some of the ways in which GST will help manufacturers are:

• Before GST, excise duty had to be paid as a specified percentage of Maximum Retail Price(MRP). However, under GST the excise duty will
have to be paid on the ex-factory transaction value leading to lower tax burden.

• Pre-GST Central taxes could not be offset against State wise taxes and there were cascading layers of taxation. With the introduction of GST,
such issues get addressed as set-offs are allowed across the production and value chain.

• Subsuming of entry taxes for inter state transfers will reduce the cost of goods and services, thereby boosting demand.

• GST will provide a simple single point registration unlike the old regime in which each production facility had to be registered separately.

• Under the new tax law, manufacturers can claim input tax credit on input goods which will have positive impacts on cash flows.

• Another benefit would be the provision of a single Goods and Services Tax Identification Number (GSTIN) instead of the multiple registrations
required for service tax, VAT, CST.

• Manufacturers will also be able to optimise their supply chain for business efficiency. Warehousing and location decisions will be taken on the
basis of economic efficiency such as costs and locational advantages instead of tax efficiency.

• Assessment of income of manufacturer by many separate authorities for VAT, Service Tax, Central Excise, etc. has been replaced by only
three authorities – Central, State and Interstate.

24 Manufacturing For updated information, please visit www.ibef.org

 OPPORTUNITIES IN MANUFACTURING


The Government is attempting to boost electronic goods manufacturing in India.

Government Initiatives For creating an eco-system to make India a global hub for electronics manufacturing a provision of
US$115.62 million in 2017-18 in incentive schemes like M-SIPS and EDF.

100% FDI is allowed under the Electronic System Design and Manufacturing Sector(ESDM).


In Budget 2017-18 US$ 55.85 billion was allocated to Defence.

31 per cent of India’s Defence Budget is spent on capital acquisitions.
Defence Manufacturing

It is estimated that India will spend over US$ 250 billion on defence in the next decade.


A target of US$ 2 billion of defence exports has been set for the two years starting 2016-17.


The FDI limit in the defence sector has been raised to 100 per cent


The electronic goods industry is one of the fastest growing industries. Demand for electronic goods is
increasing at a CAGR of 22 per cent and is expected to reach US$ 400 billion by 2020.

It is expected that domestic production of electronic goods which is growing at 27 per cent may touch US$
Electronics goods 100 billion by 2020.
manufacturing 
The government has launched various schemes to boost ESDM sector in India. Modified Special Incentive
Package Scheme (M-SIPS) is one scheme which aims to achieve ‘Net Zero Imports’ in the industry by 2020.
Electronic Development Fund (EDF) is a fund of funds which will invest in ‘daughter funds’ which invest in
companies in the field of electronics and IT.

Source: Media sources, Aranca research

25 Manufacturing For updated information, please visit www.ibef.org
 Manufacturing

CASE STUDIES
 NILKAMAL

 VisakhapNilkamaltnmRevenueporttraffic(US(mill$illion)tonnes)
Nilkamal Limited is a leader in the Indian market for manufacturing and
marketing of molded plastic furniture.

 350 2
CAGR 7.39%
Nilkamal is a One Stop Shop for Material Handling Solutions and
offers a comprehensive product mix from crates, pallets, bins,
material handling equipment ranging from pallet trucks to stackers,
shelving, racking and forklifts plus all equipment required for every 300
type of industry which is growing at a rapid pace in India.

295

311

315
 250

265
Nilkamal’s core businesses include material handling solutions,

273
molded furniture, Nilkamal Matrezzz, Nilkamal Home Ideas and
@Home.

236
 200

205
The company has grown at a compound annual growth rate (CAGR) of
7.39 per cent over FY11-17.
 150
Its revenue has grown from US$ 205 million in FY11 to US$ 315 million
in FY17.

100

82
50

0
1
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

1 2
Note: For Q1 – April to July, CAGR is till FY17
Source: Company website, Moneycontrol

27 Manufacturing For updated information, please visit www.ibef.org

 EVOLUTION OF NILKAMAL



Shri Virajlal Parekh manufactures Plant started in Sinnar, Maharashtra
metal buttons in a one machine 
Becomes official crates supplier to Coca- Cola
factory shed and Pepsi 
Launches Nilkamal Padma Plastics Pvt

Buys windsor machines to start 
Opens new plants at Noida (North India), Ltd

plastics processing, called Pondicherry (South India) and Kharadapada, Inaugurates @home

company National Plastics Silvassa (West India) Enters into joint venture with BITO

Full fledged into household items Logertechnik Bittman Gmbh, Germany

1934-1964 1970-1990 1991-1997 1999-2001 2002-2006 2014-2015


Factory started at Powai (Mumbai)  

Launches plant in Vasona, Silvassa Nilkamal Crates and Bins Private Limited and
Nilkamal Plastics is an independent (West India) Stackwell Marketing Services Private Limited
venture  merges with Nilkamal

Crate manufacture started Opens Nilkamal Eswasan Plastics Pvt

Ltd 
@home grabs the award ‘Best Retail Desgin
Manufacture on moulded furniture  and Visual Merchandising’ under the Home
started Starts plant in Barjora, West Bengal
(East India) Improvement category

Achieves ISO 9001:2000 certification by 
@home grabs the award ‘Retailer of the
TUV- Germany year’ under the Home Product and Office
Improvement category
Source: Company website, Aranca Research

28 Manufacturing For updated information, please visit www.ibef.org

 ASIAN PAINTS

 VisakhAsiapatnamPaintsportRevenuetraffic(US(million$tonnes)
Asian Paints is India’s leading and Asia’s fourth largest paint company

 2
It operates in 19 countries and has 26 paint manufacturing facilities in 3,000 CAGR 11.90%
the world, servicing customers in over 65 countries

Asian Paints was included in the list of India’s Super 50 companies
th 2,500
by Forbes India (August 2017 issue) and was the 8 ranked
company in the Forbes Most Innovative Company List in 2017


1,994

2,228

2,414
2,442
Over the years, the company has won many awards such as 2,000
Outstanding Company of the year (2016) by India Business Leader
Awards and Most Impactful companies of the Decade by CNBC
Awaaz (2015)

1,512

1,721
 1,500
The company has grown at strong Compound Annual Growth Rate of
11.90 per cent over FY13-17.

1,099

1,209

Its revenue grew from US$ 1,133 million in FY2010 to US$ 2,488 in FY 1,000
2017.

500

571
-
1
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

1 2
Note: For Q1 – April to July, CAGR is till FY17
Source: Company website, Moneycontrol

29 Manufacturing For updated information, please visit www.ibef.org

 EVOLUTION OF ASIAN PAINTS


The only paint company in the
world to be awarded Forbes
 Champaklal H. Choksey, Best under a Billion companies.
Chimanlal N. Choksi,  
Reengineered formulations to Total income of company
Suryakant C. Dani and Arvind in 2016-17 reaches US$
reduce cost and upgraded
R. Vakil get together to key products and 2.69 billion.
manufacture paint in a garage manufacturing processes to 
Asian Paints enters into
on Foras Road, Bombay. They meet environmental and adhesives with its super
name their company 'The Asian safety concerns. adhesive, TruGrip Ultra.
Oil and Paint Company‘.

1957-67 2010
1942 2004-06 2017


 The family owned company Commencement of
makes transition to a commercial production in
new paint manufacturing
professionally managed one
facility in Rohtak, Haryana
and emerges as the leading 
paint company ahead of any Integrated overseas
international competition. technical groups with
added focus on leveraging
organisation capabilities

Source: Company website, Aranca Research

30 Manufacturing For updated information, please visit www.ibef.org

 Manufacturing

KEY INDUSTRY
ORGANISATIONS
 INDUSTRY ORGANISATIONS

Visakhapatnam port tr ffic (million tonnes)

The Textile Association (India) (TAI) All India Food Processors’ Association (AIFPA)
Address: 72-A, Santosh, Dr M B Raut Road, Shivaji Park, Address: 206, Aurbindo Place Market, Hauz Khas -
Dadar, 110016, New Delhi
Mumbai- 400 028 Phone: 011-26510860, 41550860
Telefax: 91 22 24461145 E-mail: aifpa@vsnl.net
Website: www.textileassociationindia.org Website: www.aifpa.net

Automotive Component Manufacturers Association of

Cement Manufacturers’ Association (CMA)
India (ACMA)
Address: CMA Tower Address: The Capital Court
A-2E, Sector 24, Noida - 201301, Uttar Pradesh 6th Floor, Olof Palme Marg,
Phone: 0120-2411955, 2411957, 2411958 Munirka - 110067, New Delhi
E-mail: cmand@cmaindia.org Phone: +91-11-26160315
Website: www.cmaindia.org E-mail: acma@acma.in
Website: www.acma.in

32 Manufacturing For updated information, please visit www.ibef.org

 Manufacturing

USEFUL
INFORMATION
 GLOSSARY


BTRA: Bombay Textile Research Association

CAGR: Compound Annual Growth Rate

FDI: Foreign Direct Investment

FY: Indian Financial Year (April to March)

GOI: Government of India

INR: Indian Rupee

US$: US Dollar


ACMA: Automotive Component Manufacturers Association
of India

Wherever applicable, numbers have been rounded off
to the nearest whole number

34 Manufacturing For updated information, please visit www.ibef.org

 EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR equivalent of one US$ Year INR equivalent of one US$
2004–05 44.81 2005 43.98
2005–06 44.14
2006 45.18
2006–07 45.14
2007 41.34
2007–08 40.27
2008 43.62
2008–09 46.14
2009 48.42
2009–10 47.42

2010–11 45.62 2010 45.72

2011–12 46.88 2011 46.85

2012–13 54.31 2012 53.46
2013–14 60.28
2013 58.44
2014-15 61.06
2014 61.03
2015-16 65.46
2015 64.15
2016-17 67.09
2016 67.21
Q1 2017-18 64.46

Q2 2017-18 64.29 H1 2017 65.73

Source: Reserve bank of India, Average for the year

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 DISCLAIMER

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