SamridDHI, meaning prosperity, is the name given to the joint programme between the Indian Institute of Science, Bangalore’s Foundation for Science, Innovation and Development (FSID) and over 10 industry partners under the Ministry of Heavy Industry’s (MHI’s) scheme for enhancement of competitiveness of the capital goods (CG) sector. The 36 months’ programme is reviewed and monitored by an expert committee appointed by the MHI.

The focus is to design and develop new products, machines, sub-systems and associated technologies innovatively to significantly enhance productivity — by an order of magnitude and not incrementally — through joint innovation between IISc (academia) and industry, funded primarily by MHI. Thousands of SamridDHIs are needed for the Indian machine tool industry to make India a global manufacturing hub.

The machine tool industry is a ‘mother industry’, a cornerstone of all manufacturing, because it enables the production of other machines, parts and equipment to a wide range of sectors, which are critical to Make in India and fundamental to the growth of our economy. The vision of becoming a Viksit Bharat is inextricably linked to the strength and capabilities of the machine tools industry.

While the traditional user-customer sectors — example, other capital goods, automotive, construction and earth-moving equipment, furniture, railways, toys, medical devices — continue to grow, it is in the emerging sectors — electronics (specifically mobile manufacturing), telecom, consumer durables, aero-defence, agriculture machinery, food processing, and renewable energy — where massive additional opportunity lies. A CAGR of 13 per cent over the last decade and a revenue base of ₹27,000 crore is no mean achievement. However, the market share of the domestic industry is only 45 per cent and our global market share is insignificant. We have an exciting opportunity ahead.

Let me provide some back-of-the-envelope data points: In 2024, the GDP estimate for India is $4 trillion, of which, the share of manufacturing is a modest 15 per cent, or $0.6 trillion In 2030, the GDP estimate is $6 trillion.

We should endeavour to target manufacturing at 20 per cent, that is, $1.2 trillion Therefore, in the next six years effectively, manufacturing will have to double.

The automobile industry is also forecasting a doubling in the same period, the construction and earthmoving equipment industry by 2.5 times and the auto components industry is targeting a five-fold increase in exports — from $20 billion to $100 billion — in the same period.

Set bold targets

Therefore, it is imperative that the machine tool industry sets the following bold targets for itself for FY30 to cater to the growth forecast by its customers:

Revenue must grow at least two-fold — to ₹55,000 crore from ₹27,000 crore — that is, a CAGR of 12-13 per cent.

Enhance domestic market share to 65 per cent from 45 per cent.

Expand the export base to 20 per cent from 12 per cent.

The targets are challenging, but not impossible to achieve. If we were to extrapolate to 2047, when India endeavours to be a Viksit Bharat, with GDP expected to be at $30 trillion and manufacturing’s share at 25 per cent, or $7.5 trillion, the opportunity is truly enormous. Further, with the distinction between manufacturing and services — that is, software + electronics + AI — blurring, they can perform a jugalbandhi to drive efficiency multi-fold. A virtuous cycle which will take us to the very top.

The user-sector is growing by the day, and will need newer materials — lighter in weight, but stronger — and newer processes. And this will require innovative and more efficient machining strategies.

With the machine tools industry becoming more and more tech driven, the young of today can be attracted, if we put the opportunity in perspective for them — that is, expose them to Industry 4.0, which is all about the integration of digital technologies such as AI, ML, IoT and data analytics into manufacturing processes to create smart, connected and efficient production systems.

And therefore, if an agenda is to be recommended for the machine tool industry and its captains, it would be:

Raise your ambition further — set bold targets for 2030 and a roadmap in five-year bursts up to 2047. Work backwards to set up a credible plan to achieve them, including geographies, segments, sub-systems, etc.

Collaborate to compete — build machining lines to provide solutions rather than just individual machines. This will enable enhancement of business significantly and also enable pricing for value over cost value over cost.

Let total quality be the mantra — for flawless execution each time, every time. That will bring respect from the customer and build your brand.

Go green and align with global value chains (GVCs) — that is, build a scalable, sustainable, de-carbonised, world-class footprint. Build green machines using sustainable processes and green materials. This will enable an initial foothold into the GVCs which will lead to integration in the future.

Strengthen the domestic supply chain — handhold Tier-II and Tier-III suppliers and take them along in your journey as partners.

Bet on R&D and innovation — lead in at least one product category by building partnerships and ecosystems or clusters with industry-company-academia-strategic suppliers to innovate, while collaborating seamless with the government as the enabler.

Adopt and drive Industry 4.0: Bring together machine-software in the form of a jugalbandi to drive productivity, efficiency and precision multi-fold. Get AI ready i.e. in three factors : Algorithms, compute capability and data, especially data capture via digital twinning.

Invest in talent: Develop a succession pipeline of young and mid-management executives who will lead the industry to India@100. Also, recruit laterally from user industries to add to diversity of thought — skill, upskill, reskill them. Now, more than ever.

For India to truly emerge as a manufacturing powerhouse, the Indian machine tool industry must lead the charge with innovation, competitiveness and a commitment to excellence. The opportunities are vast and the rewards endless. It is for the industry to take them by being bold.

The writer is Independent Director and former MD and CEO, Ashok Leyland and JCB India