Emerging Trends in Material Handling Machinery Manufacturing in India
Sunil Chaturvedi, a Chartered Accountant, spent 20 years in the Indian Administrative Service (IAS) with roles like Director in the Ministry of Finance and Commissioner for Micro and Small Scale Enterprises in West Bengal. After retiring in 2008, he became Executive Director and COO at Bharat Forge Limited. Since January 2014, he has been Chairman of Gainwell, overseeing its management buyout in 2016. He is also active in professional organizations such as SAE, CII, and FICCI.
In an in-depth thought leadership piece in discussion with the siliconindia magazine Editorial team, Sunil Chaturvedi, Chairman & MD, TIL Limited sheds light on the ‘Emerging Trends in Indian Material Handling Machinery Manufacturing Industry’. Let’s read through!
The material handing industry is truly an exciting space to be in today. We are observing several interesting, emerging trends in the sector. Whether it is the rising demand for automation and smart technologies, or integration of robotics, IoT, and AI into products as well as aftermarket service delivery. These technologies are helping enhance the efficiency, precision, and safety of our products. It is important to have smart, connected machines instead of dud iron on wheels or tracks. Simultaneously, customer engagement and delivery of aftermarket support is becoming technology-driven facilitating enormous ease for the customers.
Today, AI and machine learning algorithms can be used to enhance the capabilities of material handling systems by enabling speedy and intelligent decision-making, predictive analytics, and process optimization. These technologies are shaping India’s material handling industry and will help improve efficiency, reduce downtime through predictive maintenance, and enhance overall equipment performance.
Similarly, IoT technologies are enabling real-time monitoring and data collection from material handling equipment like ReachStackers, Rough Terrain Cranes, Truck Cranes, Pick & Carry Cranes, etc. It is crucial for us to leverage these technologies in India and adopt successful practices from international markets. Some of these will come with a price impact but smart customers today are paying the premium to own tough, reliable equipment that can stand the test of time.
Addressing The Demand for Customizable & Flexible Material Handling Solutions
The Indian customer expects the best of best at the lowest possible price. This is true for the India Material Handling Industry as well. Customers are increasingly demanding customized solutions that integrate seamlessly with their operations, requiring manufacturers to be agile and adaptable.
Many manufacturers are developing modular material handling systems for their products according to the specific needs of customers from different industries and applications. Offering flexibility is important to meet diverse operational demands of individual customers, and to provide complete solutions for their sustained growth. One typical example of this is the ReachStacker customer who today desires different type of attachments that can be used in handling material in the steel and allied industries as well. Similarly, the truck crane customers want a crane that can pick and carry the load on the back of a road-legal mobile crane.
Manufacturers are now investing in, offering bespoke designs, and engineering services to create material handling solutions tailored to specific client requirements. This includes designing systems that can manage unique product types, operate in challenging environments, or fit within constrained spaces.
One crucial factor here is to localize manufacturing and assembly. Indian crane manufacturers can more quickly adapt to changing market demands and provide customized solutions. Moreover, when you need service and parts, it is always better to be vocal for local and own equipment that has its roots in Indian supply chain.
Challenges In Integrating Tech & Existing Material Handling Machinery Systems
Integrating advanced technologies into material handling systems in India is not without its challenges. High initial costs make it difficult for small and medium-sized enterprises (SMEs) to invest in robotics, AI, and IoT. After all, customers are not always willing to pay the premium for these technologies. Many existing systems use outdated technology, complicating compatibility and requiring costly modifications. A shortage of skilled professionals in these advanced fields also hinders effective implementation, while organizational resistance to change can create reluctance among employees and management.
The complexity of integrating modern technologies with legacy systems demands thorough planning and testing. Data security and privacy are critical concerns, as managing substantial amounts of sensitive information necessitates robust cybersecurity measures. Additionally, finding specialized maintenance support can be challenging, particularly in remote areas. Compliance with local regulations adds another layer of complexity and ensuring that modern technologies can scale and adapt to future needs is essential. Lastly, demonstrating a clear return on investment (ROI) for these technologies is crucial for justifying their initial costs. However, notwithstanding the challenges, technologies are slowly getting absorbed with new generation of customers demanding more evolved, efficient products delivering better throughputs.
Addressing Need for Increased Energy Efficiency & Sustainability
Sustainability and environmental considerations are rapidly taking the centre stage, with a growing emphasis on electric and hybrid options. Adoption of latest technologies by industry players, incorporating alternate fuels and sustainability components in processes and products is also opening new markets for state-of-the-art, eco-friendly machines. Extending Equipment Lifespan will be the first step in this effort. By designing machinery with durability and long life in mind, manufacturers reduce the need for frequent replacements and repairs, which in turn lowers resource consumption and waste generation. Also, management of machines over multiple lifecycles including refurbishment will further reduce environmental footprint. It also helps users to reduce overall cost of ownership though the upfront cost of equipment will be higher compared to less environment friendly and low-cost equipment from non-Indian manufacturers.
Manufacturers are seeking certifications such as ISO 14001 (Environmental Management) and complying with green standards to demonstrate their commitment to sustainability. These certifications often require adherence to strict environmental and energy efficiency practices.
Collaboration between Indian Manufacturers & International Players
This is India’s decade and more so when it comes to manufacturing and the material handling equipment industry. India is poised to become a manufacturing hub for the entire world and international brands will rely heavily of Indian partnerships to crack this large market. Indeed, many of the developed economies are facing dwindling competitiveness in manufacturing and international players are increasingly looking for more competitive manufacturing destinations. India’s manufacturing is projected to grow 15x from current levels, to reach US$ 7.5 trillion by 2047, comprising around 25% of total GDP as against the current 16-17%. Concomitantly, India’s share in global manufacturing is projected to grow from the current 3% to approximately 15% by 2047. India will have the largest working population and lowest dependency ratio. However, total factor productivity in India is projected to grow over the next ten years at 1.5- 1.7% p.a.
More global players are shifting their manufacturing base to India as manufacturing in developing countries becoming more expensive every day. India and similarly placed south-east Asian countries will take the centre stage of factory production. Collaboration with global players will result in more automation, innovation and digitalization leading to improved efficiency, precision, safety, and enriched customer experience. Consistent growth in capacity will reduce dependence of import and push the export of Indian made world class machines.
Addressing Future Supply Chain Demands & Challenges
The material handling industry currently faces several significant challenges. Increasing competition from low-cost imports with peripheral value added in India is bringing tremendous price pressures on Indian industry. Simultaneously there is an inflow of old and used machines from various parts of the world, lack of awareness and training among end-users leading to suboptimal performance and safety risks. Additionally, inadequate availability of skilled workforce for specific tasks, slow adoption of world class technology and digitisation, evolving regulations, standards, and relatively high interest costs are major issues the industry is facing today.
Some proactive steps that are being taken to overcome these challenges include investments in hiring young professionals, investing in skill development, and providing training to end-users on the advanced functionalities and optimal usage of our products. Fostering strategic partnerships with industry leaders to leverage their expertise to stay ahead of the curve in terms of technology and innovation is also one-way Indian manufacturers are protecting the nation’s interest. A close monitoring of regulatory changes, adapting products and services to ensure compliance will of course continue to be important in this respect.
In an in-depth thought leadership piece in discussion with the siliconindia magazine Editorial team, Sunil Chaturvedi, Chairman & MD, TIL Limited sheds light on the ‘Emerging Trends in Indian Material Handling Machinery Manufacturing Industry’. Let’s read through!
The material handing industry is truly an exciting space to be in today. We are observing several interesting, emerging trends in the sector. Whether it is the rising demand for automation and smart technologies, or integration of robotics, IoT, and AI into products as well as aftermarket service delivery. These technologies are helping enhance the efficiency, precision, and safety of our products. It is important to have smart, connected machines instead of dud iron on wheels or tracks. Simultaneously, customer engagement and delivery of aftermarket support is becoming technology-driven facilitating enormous ease for the customers.
Today, AI and machine learning algorithms can be used to enhance the capabilities of material handling systems by enabling speedy and intelligent decision-making, predictive analytics, and process optimization. These technologies are shaping India’s material handling industry and will help improve efficiency, reduce downtime through predictive maintenance, and enhance overall equipment performance.
Similarly, IoT technologies are enabling real-time monitoring and data collection from material handling equipment like ReachStackers, Rough Terrain Cranes, Truck Cranes, Pick & Carry Cranes, etc. It is crucial for us to leverage these technologies in India and adopt successful practices from international markets. Some of these will come with a price impact but smart customers today are paying the premium to own tough, reliable equipment that can stand the test of time.
Addressing The Demand for Customizable & Flexible Material Handling Solutions
The Indian customer expects the best of best at the lowest possible price. This is true for the India Material Handling Industry as well. Customers are increasingly demanding customized solutions that integrate seamlessly with their operations, requiring manufacturers to be agile and adaptable.
Many manufacturers are developing modular material handling systems for their products according to the specific needs of customers from different industries and applications. Offering flexibility is important to meet diverse operational demands of individual customers, and to provide complete solutions for their sustained growth. One typical example of this is the ReachStacker customer who today desires different type of attachments that can be used in handling material in the steel and allied industries as well. Similarly, the truck crane customers want a crane that can pick and carry the load on the back of a road-legal mobile crane.
Manufacturers are now investing in, offering bespoke designs, and engineering services to create material handling solutions tailored to specific client requirements. This includes designing systems that can manage unique product types, operate in challenging environments, or fit within constrained spaces.
One crucial factor here is to localize manufacturing and assembly. Indian crane manufacturers can more quickly adapt to changing market demands and provide customized solutions. Moreover, when you need service and parts, it is always better to be vocal for local and own equipment that has its roots in Indian supply chain.
Challenges In Integrating Tech & Existing Material Handling Machinery Systems
Integrating advanced technologies into material handling systems in India is not without its challenges. High initial costs make it difficult for small and medium-sized enterprises (SMEs) to invest in robotics, AI, and IoT. After all, customers are not always willing to pay the premium for these technologies. Many existing systems use outdated technology, complicating compatibility and requiring costly modifications. A shortage of skilled professionals in these advanced fields also hinders effective implementation, while organizational resistance to change can create reluctance among employees and management.
The complexity of integrating modern technologies with legacy systems demands thorough planning and testing. Data security and privacy are critical concerns, as managing substantial amounts of sensitive information necessitates robust cybersecurity measures. Additionally, finding specialized maintenance support can be challenging, particularly in remote areas. Compliance with local regulations adds another layer of complexity and ensuring that modern technologies can scale and adapt to future needs is essential. Lastly, demonstrating a clear return on investment (ROI) for these technologies is crucial for justifying their initial costs. However, notwithstanding the challenges, technologies are slowly getting absorbed with new generation of customers demanding more evolved, efficient products delivering better throughputs.
Addressing Need for Increased Energy Efficiency & Sustainability
Sustainability and environmental considerations are rapidly taking the centre stage, with a growing emphasis on electric and hybrid options. Adoption of latest technologies by industry players, incorporating alternate fuels and sustainability components in processes and products is also opening new markets for state-of-the-art, eco-friendly machines. Extending Equipment Lifespan will be the first step in this effort. By designing machinery with durability and long life in mind, manufacturers reduce the need for frequent replacements and repairs, which in turn lowers resource consumption and waste generation. Also, management of machines over multiple lifecycles including refurbishment will further reduce environmental footprint. It also helps users to reduce overall cost of ownership though the upfront cost of equipment will be higher compared to less environment friendly and low-cost equipment from non-Indian manufacturers.
Manufacturers are seeking certifications such as ISO 14001 (Environmental Management) and complying with green standards to demonstrate their commitment to sustainability. These certifications often require adherence to strict environmental and energy efficiency practices.
Collaboration between Indian Manufacturers & International Players
This is India’s decade and more so when it comes to manufacturing and the material handling equipment industry. India is poised to become a manufacturing hub for the entire world and international brands will rely heavily of Indian partnerships to crack this large market. Indeed, many of the developed economies are facing dwindling competitiveness in manufacturing and international players are increasingly looking for more competitive manufacturing destinations. India’s manufacturing is projected to grow 15x from current levels, to reach US$ 7.5 trillion by 2047, comprising around 25% of total GDP as against the current 16-17%. Concomitantly, India’s share in global manufacturing is projected to grow from the current 3% to approximately 15% by 2047. India will have the largest working population and lowest dependency ratio. However, total factor productivity in India is projected to grow over the next ten years at 1.5- 1.7% p.a.
More global players are shifting their manufacturing base to India as manufacturing in developing countries becoming more expensive every day. India and similarly placed south-east Asian countries will take the centre stage of factory production. Collaboration with global players will result in more automation, innovation and digitalization leading to improved efficiency, precision, safety, and enriched customer experience. Consistent growth in capacity will reduce dependence of import and push the export of Indian made world class machines.
Addressing Future Supply Chain Demands & Challenges
The material handling industry currently faces several significant challenges. Increasing competition from low-cost imports with peripheral value added in India is bringing tremendous price pressures on Indian industry. Simultaneously there is an inflow of old and used machines from various parts of the world, lack of awareness and training among end-users leading to suboptimal performance and safety risks. Additionally, inadequate availability of skilled workforce for specific tasks, slow adoption of world class technology and digitisation, evolving regulations, standards, and relatively high interest costs are major issues the industry is facing today.
Some proactive steps that are being taken to overcome these challenges include investments in hiring young professionals, investing in skill development, and providing training to end-users on the advanced functionalities and optimal usage of our products. Fostering strategic partnerships with industry leaders to leverage their expertise to stay ahead of the curve in terms of technology and innovation is also one-way Indian manufacturers are protecting the nation’s interest. A close monitoring of regulatory changes, adapting products and services to ensure compliance will of course continue to be important in this respect.
