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Engineering business with Germany

By Niranjan Mudholkar,

Added 10 January 2014

The German market remains an important element of any comprehensive export strategy to Europe, says Rajesh Nath, MD, German Engineering Federation (VDMA) India.

The VDMA India office has been acting as a bridge-head between the German and Indian industries. How can Indian manufacturers benefit through you?

VDMA India is the only association of its kind focusing on mechanical engineering industry and is active in various specialised sectors. Over the years, it has developed a good network with the Indian industry. The varied activities of this Federation since many years, has led to closer co-operation between the members of the specialised associations within VDMA and the Indian companies they work with.

VDMA helps Indian manufacturers in furnishing information about the complete product program of the German industry to assist them to identify right partners for mutual business relationship and providing information on market trends, prospects, future development, new projects and tenders. Also, we help the Indian companies looking for German tie-up and collaboration.

Which industry sectors covered by VDMA present the maximum growth opportunities for Indian manufacturers? Why?

Industry sectors like agriculture, food processing, construction, fluid power, power transmission, mining, material handling, machine tools, plastics and rubber machinery present the maximum growth opportunities for Indian manufacturers.

According to the VDMA statistics for incoming orders over the last three statistically recorded months (August - October 2013), 12 of the selected sub-sectors showed growth rates compared with the previous year. Four sub-sectors reached growth rates of 10 percent and more; these include melting plants and rolling mills, compressors, compressed air and vacuum technology, lifts and escalators and fluid power equipment.

The growth in the automotive industry was expected to trigger further demand for the automation and robotics sector. However, that has taken a back seat. Do you see the application of industrial automation and robots expanding beyond automotive? Which are the key sectors where this is happening?

By 2015, the global robotics industry is estimated to be worth US$17.6 billion with the Indian robotics industry worth approximately US$750 million. In 2011, robot sales in India doubled to 1,547 units. In 2012, robot sales decreased by three percent to 1,508 units. It is again expected to rise to about 4,000 units a year until 2015.

The main applications of robots in India are welding, handling and dispensing. Hence, it is likely that more than 70 percent of the robot sales ended up in the automotive industry. Welding had a considerable increase between 2009 and 2012. It increased from 170 units in 2009 (the year of the economic crisis) to 840 units in 2012.

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