Transmitting Growth

February 12, 2016 5:04 pm

A study on the current market scenario of power transmission and its major growth drivers
   Indian auto power component industry is one of the growing industries, riding on the success of OEMs. Dovetailed with this is growing demand for Indian quality and favorably priced transmission components. The government has already launched ‘Make in India’ campaign to make India a manufacturing hub. As the ‘Make in India’ story unfolds, the road ahead for the automobile industry is fraught with both excitement and challenge. “The ‘Make in India’ story will, in all likelihood, be led by the automobile and auto component sector as it accounts for over 30 per cent of the entire manufacturing sector in India. In this context it is little wonder that large automotive companies like Volvo, VW, GM, Honda, BMW, Daimler, Renault-Nissan are investing into the Indian automotive market with not only the view of a large market but as well as a global manufacturing hub,” states M Sankaranarayanan, President, RSB Transmissions Ltd.
“The Mechanical Power Transmission (MPT) industry is evolving along with the new technologies getting incorporated in the equipment design and manufacturing. The change is moving towards Electro Mechanical Power Transmission (EMPT) supporting the drives to get more energy efficient. The industry is also moving towards remote sensing and condition monitoring for improving the functional parameters,” says Sunil Kaul, Vice President (S&M), J K Fenner (India) Ltd.
Transmission component industries have swiftly and steadily adapted to latest technologies due to stringent requirements by leading brands like GM, Daimler, Toyota, Ford, Honda, Volkswagen and Mercedes Benz having already set up shops in India. Components with indigenous manufacture, therefore, are global in quality feature, with ruggedness and built-in endurance. 
Transmission component industries cater to gear lock, drive shafts, axles, gears, clutches etc which form the backbone of OEMs on the wheels.  With state-of-art facilities and on-time delivery commitments by  auto components  leading brands with in-built quality  journeying in every process of activity, with favourable conditions like softening of commodity prices etc  and more expected during 2016, OEMs will may witness surge in demand for their brands and evidently, resultant increased order intake for component industry.
Sankaranarayanan feels, “The challenging times of flagging vehicle sales, high capital cost and interest rates, fluctuating exchange rates and slowing down of investments witnessed during 2014, is now likely to change. With twin advantage of price and quality, exports are expected to surge during 2016.  With mood of FDIs upbeat and seeing India as a favourable destination for investors, particularly auto sector, happier days are clearly visible in horizon. With all global OEMs setting up facilities in India and making India as manufacturing hub, Indian auto components makers are well positioned for going global through these OEMs.”
On the other hand, V B Kalyankar, CEO, Elecon Engineering Co Ltd feels, “The current market looks very gloomy. Transmission market depends on strength of various solution driven market or sectors such as power, cement, steel, mining, material handling, EPC; process plants such as sugar, chemical, rubber as well as defence. Majority of these sectors are not doing well apart from sugar, EPC and power and to some extent defence where we are getting good opportunities and we are bagging few orders.”
Major growth driversThrowing light on the major growth drivers, Sankaranarayanan points out below few growth drivers in the power transmission segment:• Establishment of special auto parks and  SEZs for auto components.• Reduced excise duty to give boost to cost advantage.• Competitive advantages facilitating emergence of outsourcing hub.• High export potential.• Proven in-house R&D competencies and capabilities.• Quaity Excellence in every aspect.• Ruggedness and proven design.• Growing domestic automobile market.• Power availability at reduced rates.• Reduced customs duty.
Talking on the major growth drivers, Kalyankar says, “We bagged good orders for cooling tower gearboxes in this fiscal year as well as good number of planetary solution offerings for sugar mill drives. The score against power was okay but not satisfying our infrastructure feed (hunger) rate, and now in the last leg we are hoping to bag a big defence order from Indian Navy for frigates.”

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