BWI: Frost & Sullivan: India’s Emergence as a Manufacturing Hub Attracts Global Companies to its Hydraulics Components Market

Press release from Business Wire India
Source: Frost & Sullivan
Tuesday, January 17, 2012 01:40 PM IST (08:10 AM GMT)
Editors: General: Consumer interest; Business: Accounting & management consultancy services, Automotives, Business services
--------------------------------------------------
Frost & Sullivan: India's Emergence as a Manufacturing Hub Attracts Global Companies to its Hydraulics Components Market
Construction and Bulk Material Handling Industries Haul Up the Revenues of Hydraulic Component Manufacturers

Mumbai, Maharashtra, India, Tuesday, January 17, 2012 -- (Business Wire India) -- The rapid boom in Indian infrastructure industry, along with the more moderate growth of the manufacturing sector, has stabilized the demand for hydraulic components in India. The Government of India's planned investment of INR 45 trillion in infrastructure in the 12th five year plan (2012-2017) will be a major boost to construction equipment and thereby, hydraulic components.

New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Indian Hydraulic Components Market, finds that the market was valued above INR 18 billion during 2010 and is likely to grow at a compound annual growth rate of more than 14 percent from 2011-17 to cross INR 50 billion.

Mirroring the twofold increase of sales in the construction equipment market by 2015, the market for hydraulic components in construction and bulk material handling will also double during that period. The increased investments and expansions in core sectors such as infrastructure, steel, cement, mining, as well as oil and gas is driving the market for ancillary products such as hydraulic components.

"Emphasis on the Indian power sector is also expected to give a leg up to the hydraulic component market," says Frost & Sullivan Analyst. "With rapid capacity additions and expansions, the market is anticipated to grow by more than 15 percent over the next five years."

However, despite the projected double-digit growth rate, the absence of reliable tube suppliers for hydraulic cylinders, low availability of raw materials, and competition from the unorganized sector restrains further growth of the hydraulic components market.

Raw materials account for almost 50 percent of the total cost of the hydraulic component. Consequently, escalating input costs directly affects the margins of component manufacturers. The scarcity of raw materials results in higher costs, compounding the challenge for component manufacturers.

The trend to source from low-cost countries has gained momentum, and India, with its rich experience in manufacturing, large pool of skilled manpower, and ever increasing domestic volumes, has made the most of this environment to become a manufacturing hub for the global market. This new status will result in many multinationals clamoring to set up manufacturing facilities in India.

"The initial challenge of delivery lead times is reducing as global hydraulic component manufacturers are setting up manufacturing or assembling units in India," notes Frost & Sullivan Analyst. "With the rising prevalence of multinational companies in the country, the competition from the price-sensitive unorganized sector will reduce."

The elimination of these hurdles will clear the way for uninhibited growth of the hydraulic component market.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Caroline Lewis/ Nimisha Iyer, Corporate Communications, at caroline.lewis@frost.com / niyer@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.. Upon receipt of the above information, a brochure will be sent to you by e-mail.

Indian Hydraulic Components Market is part of the Industrial Automation & Process Control Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of the Indian Pumps Market and Strategic Analysis of the Indian Gearboxes and Geared Motors Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

Indian Hydraulic Components Market

P507-10


CONTACT DETAILS
Caroline Lewis, Corporate Communications - South Asia, Frost & Sullivan, +91 9821737935, caroline.lewis@frost.com
Tanu Chopra, Corporate Communications - Middle East and North Africa, Frost & Sullivan, +91 (22) 66072037, tanu.chopra@frost.com
Deepshri Iyer, Corporate Communications - Middle East and North Africa, Frost & Sullivan, +91 (22) 66072003, deepshrii@frost.com
Nimisha Iyer, Corporate Communications - South Asia & Middle East, Frost & Sullivan, +91 9820050519, niyer@frost.com

KEYWORDS
CONSUMER, CONSULTANCY SERVICES, AUTOMOTIVE, BUSINESS SERVICES

If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.

Submit your press release at http://www.businesswireindia.com