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Events in Engineering Cluster |
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| Coimbatore Engineering Cluster is a multi sectoral cluster having a large number of pumps & motors manufacturing units and light engineering enterprises, in addition to the large number of foundries. Since local pumps and motor industry is one of the main customers for local foundries, one would expect stronger linkages across the supply chain resulting in increased vertical cooperation. There is large number of light engineering units in the micro enterprise category ancillary to small, medium enterprises undertaking precision machining for auto component, textile machinery, garage equipments etc where there exists good scope for BDS interventions. Considering these basic diversities and the project duration,
Engineering is a diverse industry with a number of segments, and can be broadly categorized into two segments, namely, heavy engineering and light engineering.
The heavy engineering sector can be classified into two broad segments – capital goods/machinery and equipment segments. A company from this sector can be a metallurgical and power equipment manufacturer (like steel plants and boilers), execution specialist or a niche player (like providing environment friendly solutions). It can be a non-electrical machinery and static equipment manufacturer too.
Light engineering industry is one of the largest segments of the overall industrial growth of a nation. It is an intermediate unit whose demand depends on a variety of end-user industries such as power, mining, oil and gas, consumer goods, automotive and the general manufacturing sector. In other words, the products covered under this industry are largely used as inputs to the capital goods / heavy engineering industries.
The global engineering industry stands as the key to world economic well being. This evolving industry stands at a worth of $6 trillion presently. The global engineering sector is experiencing a phase where demand is outstripping the supply hence the engineering companies world over are embracing global sourcing. More than 80% fortune 500 companies are already pulling the services of off shore service providers.
In the light of the modern state of the art technology the engineering sector forms a crucial sector for the fast developing economies. Apart from experience and technical skills, enthusiasm and innovation is what the present day engineering industry yearns for. |
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| International Scenario of Foundry Sector |
| There are around 50,000 operating metal casting units around the world which account for nearly 90 million tones of casting. The global production peaked at 95 million tones in 2007, but due to recent recession and shortage in scrap and pig iron there has been a slight dip in production, the trend is expected to continue until the end of 2010.
Productivity wise Germany tops the list with production close to 10,000 tons of casting per metal casting facility. Austria, with 357,000 tons produced, makes 7,000 tons per metal casting facility. U.S. productivity continues to be one of the highest of all the nations at 5,434 tons per plant.
Gray iron casting dominates the production of castings with 47% share followed by ductile iron with 23 % and non ferrous casting accounts for nearly 15%.
The world is recovering from the recession and the production is expected to increase by the end of the year. |
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| International Scenario of Pumps & Motors Sector |
The global market for liquid pumps will increase from $21.5 billion to $28.3 billion in 2015, with an average annual compound annual growth rate of 2.8 percent. Looking out ten years from now, the global pump industry through 2015 is on an upswing – but only in specific market segments. The pump industry will continue to undergo deep structural changes.
The most important factor in the growth of the pump industry will be the increasing demand for decreasing supplies of uncontaminated water. Remediation of contaminated ground water, desalination of seawater, and other treatment processes will increasingly be needed to make use of this finite resource. Asia has less available water per capita than other continents and will also have a more rapidly increasing demand for delivery and treatment of that water. Therefore, almost half the investment in pumps for water-related applications will come from Asia. The urbanization of Asia involves the relocation of more than one billion people from the farms to the cities. This will create a huge need for infrastructure including delivery of drinking water and removal and treatment of wastewater. Rapid growth of the pump market in Asia will also be aided by large investments in pulp and paper, chemical, steel, and other basic industries. Pumps play an important role in oil and gas production, refining, and power generation, as well. The scarcity of oil and gas is leading to immense investments in substitute fuels. The use of liquefied natural gas to replace conventional gas will result in significant pump investments at the liquefaction sites, on the tankers delivering the liquefied gas, and at the degasification terminals. There is a boom in the construction of coal-fired power plants and along with it a variety of pumps including those for high pressure services in the steam cycle, water and wastewater, and for the big scrubbers required to capture the SO2. China and the US will be the biggest purchasers. Ethanol facilities require fuel. Hundreds of these plants will be built in the next decade.
By 2015, centrifugals will drop to 58.9 percent of market share. By contrast, displacement pumps will significantly increase in market shares, with reciprocating pumps increasing their share from 17.2 percent to 20.9 percent, with an average annual growth rate of 4.8 percent to 4.9 percent. One example of the overall shift of pump market potential from the west to the east is in the chemical industry. Nevertheless, in absolute figures the market potential of the chemical industry will increase by $490 million.
In the Near East, for instance, massive petrochemical manufacturing capacities are currently extended. Ethylene capacity, which has been 7 million tons per year in 2005, is projected to grow to 25 million tons in 2010, whereas in Western Europe the capacity will stagnate to about 25 millions tons per year. This means the buying criteria of plant suppliers will change and will effect the selection of pump manufacturers. |
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| National scenario |
| The engineering sector is the largest segment of the overall Indian industrial sector. India has a strong engineering and capital goods base. The important groups within the engineering industry include machinery & instruments, primary and semi finished iron & steel, steel bars & rods, non-ferrous metals, electronic goods. The engineering sector employs over 4 million skilled and semi-skilled workers (direct and indirect).
The sector can be categorized into heavy engineering and light engineering segments. Heavy engineering segment forms the majority of the engineering sector in India. The heavy engineering market contributed over 80 per cent with the light engineering segment accounting for the remaining. India has a well-developed and diversified industrial machinery/ capital base capable of manufacturing the entire range of industrial machinery. The industry has also managed to successfully develop advanced manufacturing technology over the years. Among the developing countries, India is a major exporter of heavy and light engineering goods, producing a wide range of items. The bulk of capital goods required for power projects, fertilizer, cement, steel and petrochemical plants and mining equipment are made in India. The country also makes construction machinery, equipment for irrigation projects, diesel engines, tractors, transport vehicles, cotton textile and sugar mill machinery.
From a meager US$ 10 million in 1956-57, the engineering goods exports reached US$ 25.34 billion in 2007-08. The share of engineering goods in the total merchandise exports from India has also gone up from mere 0.5% to 25% during this period which is also the largest among all product groups. |
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