Tool room: the mother of industry

September 24, 2015 10:49 am

The Indian tool room industry contributes majorly to the growth of manufacturing sector and is known as “the mother of industry”
 The Indian tool room industry is a major contributor to the growth of manufacturing sector of the Indian economy and has been a significant contributor to the success of automobile, consumer durables, plastic etc. Tooling requirement is met through three sources – commercial tool room, captive tool room and import. Majorly Indian tooling producers are privately run business. According to an estimate published by the Tool and Gauge Manufacturers Association of India (TAGMA India), 30 per cent of the tooling industry is captive, while 50 from commercial tool makers and imports contribute to 20 per cent.
Major manufacturing clustersCommercial tool room industry in India is concentrated in Mumbai, Bengaluru, Chennai, Pune, Hyderabad and NCR due to the presence of industries like automobile, auto component, plastic, general engineering, tractor etc.
Performance of Indian tool room industryThe estimated turnover of the Indian tool room industry in 2013-14 was ` 141,750 millions. The sector witnessed a growth of 4 per cent against the turnover of ` 1,36,000 millions during 2012-13. Drop in the volume of major users segments of dies and moulds namely passenger cars, commercial vehicles and consumer durable are the main reasons behind the lower growth. There is an increased demand for plastic with its increasing usage in automobiles, consumer durables and electronics.
The industry grew by 13 per cent annually in the last five years and is expected to grow is the coming years. The tooling import declined to ` 30,813 Million in 2013 – 14 against ` 34,075 in 2012 – 13. “The drop in import is mainly due to domestic commercial tool makers gaining and returning the trust of their customers by supplying quality tooling especially in sheet metal and die casting dies category. The import of plastic mould is still high in overall tooling imports and constitutes the major share,” TAGMA India observed.
The Indian tool room industry has grown at a compound annual growth rate (CAGR) of 7 per cent over the period of 2008 to 2014. The Indian tool room industry grew by 4 per cent in FY 2013-14 compared to (-) 9 per cent growth in previous year.
Sourcing of dies and mould from domestic CTRs has been increased to 55 per cent in 2013-14. In-house manufacturing of tooling is reduced marginally to 23 per cent in 2013-14 from 27 per cent in 2012-13. TAGMA anticipates that the trend towards outsourcing is likely to continue as end-users find it cost effective, time saving, flexible and allowing firms to focus on core competency. Estimated demand of Indian tool room industry for 2014 – 15 is ` 1,51,000 million.

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