Light Engineering Industry

The Light Engineering Industry is a diverse industry with a number of distinctive sectors and sub sectors. This sector includes low-tech items like castings, forgings and fasteners to the highly sophisticated micro-processor based process control equipment and diagnostic medical instruments. This group also includes industries like bearings, steel pipes and tubes etc. The products covered under the engineering industry are largely used as input to the capital goods industry. Hence the demand of this sector depends on the demand of the capital goods industry.

With a size of US $ 22 billion, the engineering sector exports stood at US $ 6.6 billion in 2001-02 and imports at US $ 4.9 billion the same year. The engineering manufacturing sector employs over 4 million skilled and semi-skilled workers.

Overview

Among the third world countries, India is a major exporter of light engineering goods producing a wide range of items. The light engineering industry in India is quite diverse with a number of distinctive sectors and sub sectors. This sector includes low tech items like castings, forgings and fasteners to the highly sophisticated micro processor based process control equipment and diagnostic medical instruments. This group also includes industries like bearings, steel pipes and tubes etc. Since the products covered under the light engineering industry are largely used as inputs to the capital goods industry, the demand of this sector depends on the demand of the capital goods industry.
It has competitive labor cost, and most of the raw materials are available locally. Over 2500 companies of this sector have ISO 9000 certification. India’s large domestic market size, allows it to reap the benefits of the economies of scale. Its diversified industrial base with supporting ancillary industries and strategic location enables India to export to near and far countries.

Size and Composition:

The Indian engineering industry is worth around Rs 1,165.0 billion. Out of this 80% of the consumption by value falls under heavy engineering while light engineering contributes to the remaining 20%. It contributes to the 20% of the net engineering production and employs over 4 million skilled and semi-skilled workers. During the period April December, 2003-2004, the exports of the engineering goods amounted to Rs. 32980 crores, as against Rs. 26356 crores during the corresponding period last year showing an impressive growth of 25.1%. Some of the specific types of the products produced by the light engineering sector of India are given below:

• Seamless Steel Pipes & Tubes
• Welded Steel Pipes & Tubes
• Stainless Steel Welded Pipes & Tubes

• Process Control Instrument
• Medical & Surgical Equipments
• Industrial Fasteners
• Industrial Gears
• Antifriction Roller Bearing
• Sewing Machine
• Plain Paper Copier
• Ferrous Castings
• Typewriters
• Steel Forgings
• Bicycle and Parts


An Overview of the Fan Industry in India

Electric fan is the second most wanted consumer durable item after the bicycle in India. The retail price of Indian domestic fan is estimated to be around Rs 810. Indian fan industry is confronted with the new challenge due to the imposition of the excise duty. It is felt that the high incidence of excise duty is likely to affect manufacturers in the organized sector and is likely to encourage higher imports from neighboring countries, particularly from China and Pakistan. Major producers and exporters of the Indian fan industry are Bajaj Electricals, Orien Fans, Kedia Fans, Crompton Greeves, Impex Trading, Kathran fans among others.

An Overview of the Indian Bicycle Industry:

The bicycle industry of India is one of the most established industries with an annual turnover of more than 12 million bicycles. India is the second largest bicycle producer of the world next only to China. Most bicycle components and bicycle spare parts in India, except for free wheels and single piece bicycle hubs, are manufactured by the Small Scale Sector (SSIs). The large scale units are permitted to manufacture bicycle frames, chains and rims for captive consumption. Manufacture of complete bicycles falls within the purview of the organized sector.

Total Number of Units Producing Bicycles in India

Advantage India

• Skilled technical manpower
• Competitive labour cost
• English speaking population
• Managerial excellence to deliver quality goods on time
• Indigenous availability of raw materials
• Over 2500 companies have ISO 9000 certification
• Large domestic market allowing economies of scale
• Strategic location allowing exports to near and far countries
• Diversified industrial base with supporting ancillary industries
• Strong technological capabilities exist, particularly in certain sectors such as electrical machinery, process plant machinery and general-purpose machinery
• Many leading world class companies have manufacturing base in India:
  GM, GE, Ford, Caterpillar, etc. - US; Toyota, Sony, Honda, LG, Hyundai - East Asia
  Siemens, Philips, Daimler Chrysler, Fiat, Lafarge-Europe; Other major MNCs include ABB, Electrolux, Volvo.
• 100 percent FDI allowed in most manufacturing sectors

India's successful foreign clients

Indian companies have supplies equipment for fertilizer projects overseas: Saudi Arabia, Qatar, Abu Dhabi, Indonesia; and for clients in Japan, Saudi Arabia and Qatar. They have also successfully handled projects in India and abroad including Malaysia, Philippines, Ghana, Libya, Tanzania, Laos, Oman and Azerbaijan.