India’s Manufacturing Prowess, - · PDF fileIndia’s Manufacturing Prowess, What it...
Transcript of India’s Manufacturing Prowess, - · PDF fileIndia’s Manufacturing Prowess, What it...
Automotive Sector: Re-Establishing India’s Manufacturing Prowess,
What it means for Secondary Metal Producers?
S D Chhabra
Vice President - Supply Chain
Maruti Suzuki India Ltd
27th Jan 2017
4th MRAI International Indian Metals Recycling Conference
EU ~1.6% China
~6.2%
Japan ~-0.1%
USA ~2.5%
India ~7.1%
• Fastest Growing Economy
Global Scenario : GDP Growth Rate
Indian Economy:- • High Growth Rate expected to continue • Huge potential for growth • Stable & Robust Macro-Economic Conditions
4th MRAI International Indian Metals Recycling Conference
Positives in India…
Inflation under
control..
Focused Initiative to
help improve
industry..
Make in India Inflation
Confident & Progressive Economic Outlook …..
Impetus to Infrastructure
Infrastructure
Revival of
Commodities
Commodities
4th MRAI International Indian Metals Recycling Conference
Indian Auto Industry
4th MRAI International Indian Metals Recycling Conference
2nd Largest Two Wheeler Manufacturer.
5th Largest Manufacturer of Passenger Vehicles 5th Largest Producer of Commercial Vehicles
Indian Auto Industry Accounts for 7.1% of India’s GDP
Source: IBEF
AMP 2026 envisages a
3 – 3.5x growth in volumes over
its tenure
Target ~3.5x to 4.0x
growth in revenues
In Mn Units
Automotive Mission Plan : Outlook
4th MRAI International Indian Metals Recycling Conference
1.29
1.43 1.52
FY-1415 FY-1516 FY-1617 (Est.)
Maruti Suzuki India Ltd: An Overview
Production Volume (Million)
MSIL, 47%
Others, 53%
Passenger Car Market Share
New Launches New Network Channels
NEXA
Commercial
Vehicle
Channel
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Mid Term Target: 2 Million Vehicles by 2020 - New Facility at SMG Gujarat
~
Regulations: Impact on Automotive
Fuel Efficiency Safety
Environment Regulations
Vehicle Scrapping
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Vehicle Life cycle
Rubber
Steel
Plastic
Recycled material
ELV
PURVIEW
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Govt.Vehicle Scrapping Policy : Boost for Recycling Industry
4th MRAI International Indian Metals Recycling Conference
Steel
Aluminum
Lead
What it means to Metal Industry
Aluminum Lead
Copper
Nickel
Zinc
Increase in Metal Consumption due to Increase in Automotive
Requirement
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Steel
Increasing Metal Usage: e.g. Aluminum
4th MRAI International Indian Metals Recycling Conference
Recycling Trends
In India, Recycling of Metals is currently very low and largely
unorganized. However, the increasing demand and policy
initiatives will be an opportunity for Secondary Metal Producers.
Recycling of Metals- Globally
Steel
Aluminum
Copper Nickel
Lead Primary Input 67%
Secondary Input
33%
Primary Input 65%
Secondary Input 35%
Primary Input 76%
Secondary Input 24%
Primary Input 60%
Secondary Input 40%
Primary Input 60%
Secondary Input 40%
4th MRAI International Indian Metals Recycling Conference
Conclusion
Indian Passenger Car Production is expected to Grow rapidly
Requirement of Metals like Steel, Aluminum, Copper, Lead will grow exponentially.
With the increased requirement of metals there will be
opportunity for Secondary Metal Producers.
Regulations related to mandatory scrapping of vehicles will promote the recycling industry.
However threats are emerging from the growth of electric vehicles and development of new generation plastics which are replacing Metals from Vehicles.
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Thank You