THE SOUTH EAST ASIAN MACHINE TOOL MARKET - South East Asia 12 Countries under study Country Capital...

Market Research Report on

THE SOUTH EAST

ASIAN MACHINE

TOOL MARKET

February 2014

Preface

2

Indian Machine Tool Manufacturers Association (IMTMA) is the apex body of machine tool industry in India . The association aims to enhance the competitiveness of Indian industry through its various initiatives on productivity, quality enhancement and technology exposures to Indian machine tool manufacturers and end-users.

As a part of various initiatives IMTMA has commissioned a market research to study the market and technology adoption levels in forming technology in South East Asian market.

In this regard, they have engaged BDB India Private Limited to carry out a Market Research Study to evaluate the market and technology adoption levels in metal cutting and metal forming technology in South East Asia (Thailand, Vietnam, Indonesia, Philippines, Malaysia & Myanmar) for the products under the scope of the study.

The Study has transformed to a detailed report on market dynamics and technology trends in short , medium and long term for South East Asian market.

The market forecasting focused on market size estimation, product type wise demand assessment, end user segment wise share and preference, need gaps and pain areas .

BDB India Private Limited was set up 2 decades ago with the objective of providing world class management inputs to engineering businesses in India. Today, BDB offer business consulting including market research services to most market savvy organizations worldwide.

BDB has offered market research inputs for setting up new businesses and in expanding existing ones. BDB has assisted in identifying new opportunity areas and in evaluating their short, medium and long term commercial potential. BDB has developed business analysis expertise in industrial products, systems & consumables, consumer durables and medical equipment.

Continued…

3

BDB also has a division (BDB QSAMM) that assists our customers to analyze and establish customer satisfaction indices.

BDB specializes in the following :

- Analysis for estimating the market size and potential

- Technology and emerging trends

- Competition analysis

- Distribution channel analysis

- Market entry strategies

- Partner identification

The study has been successfully completed and its output is being presented in the form of this report.

The findings of the study are presented in this report, and its contents are strictly confidential and meant for the exclusive use of IMTMA.

The statements and analyses in this report are based on the information and opinion obtained during field investigations and from various published sources.

Contents

4

Page No

Preface

CHAPTER 1 PROJECT BACKGROUND 5

Objectives of the study 6

Scope of the study 7

CHAPTER 2 EXECUTIVE SUMMARY 10

CHAPTER 3 CONCLUSIONS 40

CHAPTER 4 COUNTRY WISE ANALYSIS 49

Thailand 50

Vietnam 99

Indonesia 153

Philippines 198

Malaysia 256

Myanmar 305

APPENDIX

1. PROJECT BACKGROUND

- OBJECTIVES OF THE STUDY

- SCOPE OF THE STUDY

Objectives of the study

6

aa Market size estimation for Metal cutting and metal forming machines

bb To report on sector wise demand for metal cutting and metal forming machines

and trends related to adoption of efficient technologies

cc To project the demand over the next 5 years based on the growth of the end

user sectors

dd To recommend key areas of improvement, end user perceptions on Indian

suppliers and technology gaps

ee To develop a detailed report to guide Indian machine tool manufacturers about

the road map of the industry and enable members to take informed decisions

Scope of the study

7

aa Product categories under focus

Metal Cutting Machines

- Turning centers, Lathes, Machining Centers, Grinding Machines, EDMs,

SPMs and Tool Grinding Machines

Metal Forming Machines

- Presses (Mechanical/Hydraulic/Servo), CNC Sheet Working including laser,

Water jet, Plasma, Press Brakes, Cold & Hot Forging

bb Geographical regions under focus

South East Asia

- Following countries have been analyzed –

Thailand, Vietnam, Indonesia, Philippines, Malaysia & Myanmar

Industry, institution and suppliers in the countries under study have been

contacted to gain insights on market and its growth

Study Methodology

8

The study was carried out with a multi pronged approach involving stakeholders like

end users, domestic manufacturers of machine tool, importers, component suppliers

key industry bodies and industry experts of the user industries.

Analysis regarding the total market potential and the product wise trends were sourced

from the domestic manufacturers, importers and import export data. Where as

discussions with end users were carried out to understand types of machinery used,

source, technology trends prevailing and the growth potential of the metal cutting

machinery based on their growth trends. The end users provided the vital inputs which

led to analyzing their buying behaviour.

A detailed analysis of the customs data on imports was carried out to understand the

extent of machine tool imports into the country and sources for such procurement;

information pertaining to imports of new and used machines were separately analyzed

to arrive at meaningful inputs for the industry.

A representative sample of stakeholders has been included in key demand and

manufacturing clusters covering companies from small, medium and large scale

categories.

Discussions with various stake holders were carried out through an intensive primary

research exercise involving personal meeting between BDB analysts and respondents.

Market Forecasting : Approach

9

Approach - Overview

Methodology :

Macro economic indicators and respective user sector

growth has been mapped

The forecast for the macro economic indicators and user

sector growth has been developed based on the economy

and industry reports and discussions with end users

Correlation between macro economic indicators, end user

sector growth and metal cutting and metal forming

machinery consumption has been used to forecast the

projected consumption of metal cutting and metal forming

machinery

The results have been corroborated with manufacturers

and component suppliers based on their judgment and

experience

Important factors that could cause actual

results to differ from our expectations include,

among others:

-- Changes in political and social conditions in

countries focused

-- Extraordinary changes in monetary & fiscal

policies of the Governments of the respective

countries, inflations, foreign exchange

rates, unanticipated turbulence in interest rates;

-- The performance of the financial markets in

the countries focused;

-- Occurrence of natural disasters or calamities

affecting the economy

Assumptions :

Growth in metal cutting and metal forming machinery is proportional to the user industry

growth

Absence of any major technological change in machining amongst the user industry

No major change in the value of the metal cutting and metal forming machinery currently used

2. EXECUTIVE SUMMARY

OVERVIEW - SOUTH EAST ASIA

Introduction - South East Asia

12

Countries under study

Country Capital City Currency Type of government

Thailand Bangkok Thai Baht Monarchy

Vietnam Hanoi Vietnamese Dong Single Party State

Indonesia Jakarta Indonesian Rupiah Democratic

Philippines Manila Philippines Peso Democratic

Malaysia Kuala Lumpur Malaysian Ringgit Monarchy

Myanmar Naypyidaw Burmese Kyat Democratic

Cambodia Phnom Penh Cambodian riel Monarchy

Laos Vinetiane Lao kip Single Party State

BruneiBandar Seri

BegawanBrunei Dollar Monarchy

East Timor Dili United States Dollar Democratic

Singapore Singapore Singapore Dollar Democratic

Map of South East Asia

Also known

as Myanmar

Southeast Asia is a subregion of Asia, consisting

of the countries that are geographically south of

China, east of India, west of New Guinea and

north of Australia.

Southeast Asia consists of two geographic regions:

Mainland Southeast Asia, also known as Indochina,

comprising Cambodia, Laos, Myanmar (Burma),

Thailand, and Vietnam; and Maritime Southeast Asia,

comprising Brunei, Malaysia, East Timor,

Indonesia, Philippines, and Singapore

Country wise socio-economic and political scenario

13

Country Political Scenario Economical Scenario Social Scenario

Thailand Thailand is a constitutional monarchy Expected to recover within the range of 5.5 to 6.5% , partly as a result of government stimulus measures

Thai society maintains good values and culture. Thai people have applied the Philosophy of Sufficiency Economy to their daily lives

Vietnam

Politically stable

It is one-party state controlled by Communist Party

Vietnam is a developing country that is on the way to be integrated in the global economy

Highly dependent on others for high-tech products and production material.

Fast growing economy with profitable retailing market

Rapidly increasing population and poverty level in rural areas are major concerns

The proportion of births and life expectancy are both rising

Health challenges particularly wrtHIV/AIDS

Indonesia

Indonesia is considered as a Republic country

The Indonesian Constitution provides by Federal Constitution in 1949 for a strong executive

The international economic downturn slowed Indonesia's GDP growth to 6.9% in 2010

The major export affecting commodities are oil and gas, electrical appliances, plywood, textiles and rubber

In terms of population size, Indonesia is the fourth largest country in the world after China, India and United StatesThere are nine cities in Indonesia classified as metropolitan cities, which have population of more than one million

PhilippinesPolitical environment is becoming stable but political elite of the country is extremely corrupted

Moving towards a more stable and developing economy

Most of the sectors are open for FDI

Well defined investment policies and support from government which encourages free trade

Poverty is the most critical problem in Philippines

28% of the total population fall below poverty

Per capita income is low

MalaysiaThe political stability in Malaysia is important to attract more foreign investors to the country

The economic trend is to provide a picture of the economic growth in Malaysia

The economic in Malaysia has been in a slowdown

Malaysia is a multiracial country that consist of the Malay, Chinese and Indians

Myanmar

The new government, which took power inMar 2011, ended a 23-year military regime.Several efforts have been made towardsdemocracy including the reshuffle of thecabinet to include more reformists

Myanmar’s GDP grew the highest in 2011 crossing USD 80 billion in 2011.Biggest contribution came from Agriculture andServices sectors

Active work force constitutes 42% of the population, mainly serving the agriculture sector; Around 70% of income was spent on food items, leaving small amounts for education and healthcare

Import policies and regulations

14

Thailand:

Thailand does not prohibit imports in any category and continues to liberalize trade accordingly

In general, imports require no formal approval. Import licenses are required for only small number of

items. Importers may import goods if obtaining letter of credit, with authorized banks approving payment

following submission of the necessary documents

Most items subject to import licensing are controlled by non-automatic licensing, Import licences must

be requested from and approved by the Foreign Trade Department, Ministry of Commerce, prior to the

arrival of the shipment. An import licence is usually valid for three months from the date of issuance,

unless specified otherwise on the licence

Vietnam:

In the import and export business, subject to periodic socio-economic conditions and international

treaties under which Vietnam is a member, the Vietnamese government will authorize detailed lists of

goods prohibited for import or export, or require import, export licenses from state authorities and

procedures to apply for such licenses

The Vietnamese government also sets detailed regulations on temporary import, re-export, temporary

export and re-import. For goods' transferring, it can be accomplished by transferring goods directly from

export countries to import countries without passing through Vietnamese border gates; transferring

goods from export countries to import countries with passing through Vietnamese border gates but

without procedures of import and export in and out of Vietnam; and transferring goods from export

countries to import countries with passing through Vietnamese border gates, placing into

warehouses, transit areas at Vietnamese ports but without procedures of import and export in and out of

Vietnam


15

Indonesia:

Imports can only be done by importers who have the Import Identification Number; Imported goods must

be in new condition

Implementation of API has been one of the efforts to enhance business certainty and to support the

speed of service to business environment in order to improve the implementation of capital investment

The import goods are categorized into regulated imports and prohibited imports

Any goods that are not categorized into regulated or prohibited imports fall under Free Imports

Philippines:

Only companies with a registered business name are allowed to import

The necessary business permits for importation are issued by the Bureau of Trade Regulation and

Consumer Protection (BTRCP) (for sole proprietorship businesses) and by the Securities and Exchange

Commission (SEC) for partnerships or corporations

The products to be imported should be classified as liberalized, regulated or prohibited

An "Application for Importation" then needs to be made. An Importer can apply for importation through a

Letter of Credit and Non-L/C Import Arrangement, namely: Open Account (OA), Documents Against

Acceptance ((D/A), Documents Against Payment (D/P), Direct Remittance (D/R), Self-Funded (S/F), No-

Dollar Import Arrangement and Importations on Consignment basis. Many of the larger local banks

handle the necessary documentation for their customers

Release of Shipment is usually affected by the Bureau of Customs


16

Malaysia:

Import duties are levied on goods that are subject to import duties and imported into the country

Generally, the rates range from 0% to 50%. Customs duty is based on ad valorem rate (a percentage

applied to the dutiable value of the imported goods)

The Royal Customs Malaysia is the government agency of the Ministry of Finance responsible for the

administration of the indirect taxes; Their mandate is to collect duties and taxes as well as ensure

compliance of legislation

Myanmar:

The import goods are classified into Priority Items (A) and Priority Items (B)

The private importer is required to import 80 % priority (A) items if he wishes to import priority (B) items.

He could also import 20 % priority (B) items, together with priority (A) items and ship them at the same

time

Generally no quota or ceiling is fixed for imported items so long as the requirement to import the

prescribed amount of priority items is fulfilled, with the exception of edible oil

Some commodities, which are not in the list of prohibited items, restricted items, priority items are

allowed to import as in the list of Priority (B) within the right of 20 % ratio for import

Country wise GDP growth trends

17

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Thailand 4.8 2.2 5.3 7.1 6.3 4.6 5.1 5 2.6 -2.3 7.8 0.1 5.5

Vietnam 6.7 6.9 7.1 7.3 7.8 8.4 8.2 8.5 6.3 5.3 6.8 5.9 5.6

Indonesia 4.2 3.6 4.5 4.8 5 5.7 5.5 6.3 6 4.6 6.2 6.5 6.2

-4

-2

0

2

4

6

8

10

GDP growth trends for Thailand, Vietnam & Indonesia (2000-2012)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Philippines 4.4 2.9 3.6 5 6.7 4.8 5.2 7.1 4.2 1.1 7.6 3.6 6.8

Malaysia 8.7 0.5 5.4 5.8 6.8 5 5.6 6.3 4.8 -1.5 7.4 5.1 5.6

Myanmar 4.9 2.3 3.3 -0.5 -1.3 5.2 3 3.8 1.1 1.8 5.3 5.5 6.4

-4

-2

0

2

4

6

8

10

GDP growth trends for Philippines, Malaysia & Myanmar (2000-2012)

Source : World Bank

South East Asia - Low cost manufacturing base

18

Increasing demand for motion control products in manufacturing and the growing shift of machinery

production to Southeast Asia is expected to deliver a total CAGR of 7.5% by 2017 to affiliated

countries

Singapore and Malaysia are currently leaders in semiconductor equipment and electronic machinery

manufacturing, with Thailand, Philippines and Vietnam being primary end-users of this equipment.

Since the decline in 2009 and 2010 to the electronics and electronics assembly and semiconductor

markets, the sectors rebounded back in 2011, placing Southeast Asia high in semiconductor and

electronics production ranking. Much of China's production has been lost to Indonesia, Vietnam and

the Philippines due to rising product costs.

Automotive manufacturing and related industries, such as machine tools and plastics and rubber are

also utilizing motion controls which in turn are driving demand

Thailand produced 5.245 million motor vehicles in 2012, housing well known automakers, assemblers

and parts manufacturers such as Ford, General Motors, BMW, Daimler- Chrysler, Mitsubishi,

Mazda, Toyota, Honda and Nissan.

Driven by the fast growth of automotive industry, demand is increasing for machine tools, such as

laser-cutting machines, machining centers, milling machines, drilling machines, lathes, shearing

machines, and stamping and forging machines

Industry wise past and future growth trends

Industry segment

Compounded Annual Growth Rate (CAGR)

Thailand Vietnam Indonesia Philippines Malaysia Myanmar

Past Future Past Future Past Future Past Future Past Future Past Future

Auto OEM 7% 9% 6% 7% 6% 9% 7% 8% 10% 11% 6% 8%

Auto Component 8% 10% 6% 7% 6% 8% 7% 8.5% 7% 9% 4% 6%

Aerospace - - - - 4% 5% 8% 10% 6% 8% - -

Semiconductor &

Electronics6% 8% 11% 14% 5% 6% 8% 11% 9% 12% - -

Past growth

defines the growth

of industries in

last 5 years prior

to year 2014

Future growth

defines the growth

of industries in

next 5 years up to

year 2019

Below table indicates the past and future growth in industry segments prominent in the respective countries :

The Thailand

automotive

industry is the

largest in

Southeast

Asia and the

9th largest in

the World

Thailand

produces

more than

40% of the

world’s Hard

Disk Drives

Assembling of

electronic

products like

TV ,Fridge,

Washing

Machine,

Smartphones,

Computers and

their parts for

the domestic

and for export

are the main

activities of

electronics

industry

The

automotive

industry in

Indonesia is

growing

rapidly ; The

sales volume

of new

vehicles in

2012 for cars

crossed 1.1

million mark

The

Philippines

electronics

industry

continues to

represent a

significant and

majority share

of the total

Philippines

exports

throughout the

years

The Electrical

& Electronics

industry is

one of the

leading

industries,

contributing

24.5 per cent

to the

manufacturin

g sector in

the

Malaysia’s

GDP

Myanmar's

automotive

market is likely

to grow at a

CAGR of 7.8%

(2012-

2019), driven

by a growing

economy, infra

structure

development

and increasing

income

Source : Industry Associations

Industry segmentation based on usage of machine tools

Industry segments

South East Asian Countries selected for market research study


Auto OEM

Auto Component

Aerospace

Semiconductor & Electronics

Shipbuilding & Repair

General Engineering

Indicates Mature Market

(Good understanding about machine tools)Indicates Emerging Market

(Fair understanding about machine tools)

Under developed market

(Limited understanding about machine tools)

MACHINE TOOLS MARKET ANALYSIS

460 - 470

270 - 280

130 - 14090 - 100

5 - 6 4 - 5

Thailand Indonesia Malaysia Vietnam Myanmar Philippines

Market size analysis for CY 2013

22

Total Market size for Machine tools in countries under study : USD 2465 - 2560 Mn

Total market size of Metal Cutting Machines : USD 1500 - 1560 Mn

Total market size of Metal Forming Machines : USD 950 - 1000 Mn

970 - 980

220 - 230 200 - 21090 - 100

20 - 30 5 - 10

Thailand Indonesia Malaysia Vietnam Myanmar Philippines

Thailand’s metal cutting demand is driven by the growth in automotive and E&E

(electrical and electronics) industries; approximately 45% of total market for

metal cutting machines is contributed by turning centers

In Indonesia, the automotive and auto components segment is the major

consumer of metal cutting machines; approximately; 50% of total market for

metal cutting machines is contributed by machining centers

Forging machines contribute to approximately 53% of Thailand’s and

70% of Indonesia’s total metal cutting market.

Total Market size of Machine tools

23

Type of MachineTotal Value of Machine (in USD Mn)



Turning Centers 466 48 26 7 63 9

Machining Centers 302 20 118 2 81 9

Grinding Machines 166 23 71 1 52 3

EDMs 41 5 14 0 8 0

Total 976 96 227 10 206 21


Presses(Mechanical/

Hydraulic/Servo)64 9 25 1 26 1

Laser cutting 70 24 15 1 59 0

Press Brakes 85 36 39 2 17 3

Cold & Hot Forging 248 30 196 0 36 1

Total 466 99 275 4 138 5

Milling machines, Tool grinding machines, Heavy machineries, SPMs, Rolling machines have also been studied;

however, due to the very negligible usage of these machines, these have not been included in the detailed

analysis

ANALYSIS OF METAL CUTTING MARKET

Country wise market of metal cutting machines for FY 2013

25

Country Market size in USD Mn

Thailand 970 - 980

Indonesia 220 - 230

Malaysia 200 - 210

Vietnam 90 - 100

Myanmar 20 - 30

Philippines 5 - 10

Total 1500 - 1560

64%

15%

13%

6%1%

1%

Country wise market share based on USD Mn

Thailand Indonesia Malaysia

Vietnam Myanmar Philippines

Thailand’s metal cutting demand is driven by the growth in automotive and E&E (electrical and electronics) industries;

approximately 45% of total market for metal cutting machines is contributed by turning centers

In Indonesia, the automotive and auto components segment is the major consumer of metal cutting machines; approximately; 50%

of total market for metal cutting machines is contributed by machining centers

Source : Industry Associations, Department of Statistics of respective countries

Country wise market of turning centers for FY 2013

26


Thailand 466

Malaysia 63

Vietnam 48

Indonesia 26

Myanmar 9

Philippines 7

Total 615 - 620

Thailand is the major consumer of turning centers; the demand for turning centers is driven

by the growth of automobile sector in Thailand

75%

10%

8%

4%

2%1%


Thailand Malaysia Vietnam

Indonesia Myanmar Philippines


Country wise market of machining centers for FY 2013

27


Thailand 302

Indonesia 118

Malaysia 81

Vietnam 20

Myanmar 9

Philippines 2

Total 530 - 535

Thailand and Indonesia are the major consumers of machining centers which finds application

in automobile and auto components and electronics industry

57%

22%

15%

4%

2%





Country wise market of grinding machines for FY 2013

28


Thailand 166

Indonesia 71

Malaysia 52

Vietnam 23

Myanmar 3

Philippines 1

Total 310 - 320

Thailand and Indonesia are the major consumers of grinding machines which finds application

in automobile and auto components


53%

23%

16%

7%

1%




60%

21%

12%

7%

Thailand Indonesia Malaysia Vietnam

Country wise market of EDMs for FY 2013

29


Thailand 41

Indonesia 14

Malaysia 8

Vietnam 5

Philippines 0

Myanmar 0

Total 65 - 70

Thailand and Indonesia are the major consumers of EDMs which finds application in automobile and auto

components;

In Malaysia, EDMs are consumed by the aerospace sector.



Metal cutting - Country wise major source of imports

30

Type of

Machine

Name of the Country


Turning

Centers

Japan (64%)

Taiwan(17%)

China (6%)

Korea (49%)

Japan (39%)

Taiwan(9%)

China (50%)

Taiwan (36%)

Japan (7%)

Korea (80%)

USA (5%)

Myanmar(3%)

Japan(32%)

China(33%)

Other

ASEAN(17%)

China (95%)

Russian

Federation (2%)

Vietnam (2%)

Machining

Centers

Japan(65%)

Taiwan(27%)

Singapore(2%)

Malaysia(46%)

Taiwan(11%)

Thailand(8%)

Japan (71%)

Taiwan (14%)

Korea(5%)

Taiwan (42%)

Japan (35%)

Korea(13%)

Japan (30%)

ASEAN(33%)

Germany(9%)

China (76%)

Italy (12%)

EU-27 (12%)

Grinding

Machines

Japan(75%)

Taiwan(11%)

China (3%)

Taiwan(38%)

Japan(23%)

USA(12%)

Japan(80%)

Taiwan(6%)

Singapore(5%)

Japan(90%)

Singapore(4%)

Taiwan(2%)

Japan (36%)

Singapore (6%)

Germany(6%)

China (92%)

Russian

Federation (4%)

Thailand (3%)

EDM’s

Japan(30%)

China (28%)

Taiwan(17%)

China (41%)

Thailand(27%)

Korea(13%)

Japan(32%)

Thailand(23%)

Taiwan(18%)

Thailand(68%)

Taiwan(25%)

China (4%)

China (19%)

Japan (17%)

Germany (11%)

China (93%)

Thailand (7%)


Major Brands observed and their locations

31

Type of Machine Brand Name Location

Turning Centers

Makino Japan

Mazak Japan

Doosan Korea

Dalian Fullton China

Hartford Taiwan

Machining Centers

Doosan Korea

Haas USA

Daewoo Korea

Mazak Japan

Grinding Machines

United USA

Mitsubishi Japan

Okamato Japan

Jagular Taiwan

EDMs

Mitsubishi Japan

Excetek China

Oscar Taiwan

Sodick Japan

Hardinge United States


ANALYSIS OF METAL FORMING MARKET

Country wise market of metal forming machines for FY 2013

33


Thailand 466

Indonesia 275

Malaysia 138

Vietnam 99

Myanmar 5

Philippines 4

Total 980 - 990


47%

28%

14%

10%

1%



Thailand and Indonesia are the largest consumers of metal forming machines

Forging machines contribute to approximately 53% of Thailand’s and 70% of Indonesia’s total metal cutting market.


Country wise market of presses for FY 2013

34


Thailand 64

Malaysia 26

Indonesia 25

Vietnam 9

Philippines 1

Myanmar 1

Total 125 - 130

51%

20%

20%

7%

1%1%

Thailand Malaysia Indonesia

Vietnam Philippines Myanmar


Thailand is the biggest consumer of presses which find application in automotive and auto components segment

In Malaysia, presses are consumed by auto components and aerospace segments


Country wise market of laser cutting machines for FY 2013

35


Thailand 70

Malaysia 59

Vietnam 24

Indonesia 15

Philippines 1

Myanmar 0

Total 165 - 170


Thailand is the biggest consumer of laser cutting machines which find application in auto components segment

In Malaysia, laser cutting machines are mostly consumed by electronics segment

41%

35%

14%

9%1%

Thailand Malaysia Vietnam

Indonesia Philippines Myanmar


Country wise market of press brakes for FY 2013

36


Thailand 85

Indonesia 39

Vietnam 36

Malaysia 17

Myanmar 3

Philippines 2

Total 180 - 185


Thailand and Indonesia are the biggest consumers of press brakes which find application in automotive and auto components

segment

47%

21%

20%

9%

2%

1%

Thailand Indonesia Vietnam

Malaysia Myanmar Philippines


Country wise market of cold & hot forging machines for FY 2013

37


Thailand 248

Indonesia 196

Malaysia 36

Vietnam 30

Myanmar 1

Philippines 0

Total 510 - 515


Thailand and Indonesia are the biggest consumers of cold & hot forging machines which find application in auto components

segment

49%

38%

7%

6%




Metal forming- country wise import contribution

38

Type of

Machine

Name of the Company


Presses

(Mechanical/

Hydraulic/

Servo)

Japan (68%)

China (8%

Korea(6%)

China (37%)

Taiwan(25%)

Korea(17%)

Japan (56%)

China (14%)

Italy(10%)

Singapore(38%)

China (20%)

Japan(14%)

China (47%)

Japan (18%)

Singapore (8%)

Singapore (30%)

China (26%)

Russian

Federation

(19%)

Laser

Japan(49%)

Germany(12%)

China (11%)

Japan(54%)

China(21%)

Taiwan(6%)

Germany(27%)

China (19%)

Japan(15%)

China(60%)

Singapore(17%)

USA (12%)

Germany(52%)

Japan(32%)

China (5%)

China (67%)

Italy (14%)

EU-27 (14%)

Press Brakes

Japan (38%)

Korea(12%)

China (12%

Japan (45%)

China(21%)

Taiwan(10%)

Japan (35%)

China (25%)

Korea (20%)

Korea(51%)

China(16%)

Japan(10%)

China (26%)

Japan (18%)

Korea (6%)

China (61%)

Thailand (19%)

EU-27 (6%)

Cold & Hot

Forging

Japan (54%)

Taiwan(15%)

Korea(11%)

-

Japan (66%)

Korea (6%)

USA(5%)

-

Japan (16%)

China (10%)

Korea (3%)

China (94%)

Indonesia (3%)

Thailand (2%)


Major Brands Observed and their locations

39

Type of Machine Brand Name Location

Presses(Mechanical/Hydraulic/Servo)

Amada Japan

Anhui Lai Fu Nc China

Foshan Nanhai China

Shinil Snc Korea

Boschert Germany

KSY Taiwan

Laser cutting

Komatsu Japan

Hangkwang Korea

Trotec USA

Perfect China

Water jet & PlasmaJinan Suke China

Shanghai Sbkj China

Press Brakes

Daien Korea

Amada Japan

Taeyeon Machinery Korea

Ying Lin Taiwan

Richly USA


3. CONCLUSIONS

Current hurdles to enter the South East Asia market

41

Low awareness about

Indian machine brands

Indian manufacturers may focus on creating an awareness about the Indian

brands among the end user segments of the South East Asian countries by

participating in their machine tools related exhibitions and advertising in

machinery related magazines

Low awareness about

the technological

capabilities of Indian

manufacturers

There is very low awareness among the end user industries in South East

Asia about the capability of Indian manufacturers to manufacture world class

technology machines; Indian manufacturers may focus on improving the

awareness by providing product demonstrations to the major end user

segments

Highly price

competitive market

Majority of the demand for machine tools in South East Asian countries are

met through imports from countries like China, Korea, Turkey etc. due to the

highly competitive prices offered by them; for Indian manufacturers to enter

into this market, they may launch their machines at an equally competitive

price level so as to compete with the low price imported machines

Challenges Strategic Recommendations

Political disturbances

in few countries

There had been some political turmoil during the recent past in countries like

Thailand and Myanmar which has negatively affected the countries with

respect to the planned upcoming projects; Indian manufacturers may take

this factor into consideration while deciding to launch their machines in

these markets

Need for awareness

42

Key action plans for improving the awareness levels:

Tie up with local engineering support companies:

Indian manufacturers may form a joint venture with a domestic engineering support firm which will

open a channel for them to enter into this market

Participate in exhibitions:

Indian manufacturers may participate in the machine tools related exhibitions and display their

products and technologies; this will help as a platform to improve the awareness about Indian brands

among end users from different South East Asian countries attending the exhibition

Invite end user segments of South East Asian countries to exhibitions held in India:

End user segments from South East Asian countries may be invited to machine tool related

exhibitions in India which will help them in getting a good understanding about the technology used in

Indian machines and about the specifications offered by Indian manufacturers

Conduct exchange programs:

There should be more emphasis on people to people contact and students from South East Asian

countries should be encouraged to study in Indian universities

Attractiveness of South East Asian Market

43

Low costs of labour:

The principal attraction of the SEA countries is their low costs of labour. The impressive economic

growth of the SEA nations over the past three decades has been catalysed by local companies and

MNCs capitalising on this low-cost labour. SEA will continue to reap the benefits of its competitively

priced labour pool, which is expected to endure as the region‟s greatest asset for the future

Highly skilled labour force:

All of the governments in the region are committed to further increasing budgets and spending on

education in order to develop highly skilled labour force

Low costs of business operations:

The costs of business operations overall are significantly lower; substantially lower than in the

West, as well as in comparison with other Asian locations such as China, Hong Kong, Japan and

others.

Housing, transportation and living costs for expatriates are, with the exception of

Singapore, extremely reasonable. In addition, so are rental rates for offices and facilities

Openness for new business:

SEA countries are open for new businesses. Each country continues to make progress in

deregulation, liberalisation and reducing impediments to business operations. Reforms include

making it easier to start a business through simplifying business application processes, reducing

paper works, accelerating processes for general trading licenses and business registrations etc.

Continued...

44

Increasing flow of FDIs:

Foreign Direct Investment (FDI) has long been the driver of growth for SEA. FDI inflows are

influenced by government initiatives designed to attract inbound investment. Governmental policies

in each of the counties have long been tailored to attracting FDI with numerous incentives

Target to become low-cost manufacturing base and producer of more sophisticated goods:

SEA is targeting to become a low-cost manufacturing base and producer of more sophisticated

goods and on moving up the value chain. Countries like Thailand, Malaysia and Indonesia are

seeking to become more knowledge based economies, encouraging investments based on

innovation, R&D and technical capabilities

Priority wise countries to be focused

45

THAILAND INDONESIA

Total Machine Tools

Market (In USD Mn)

Segments to focus

Major end user

companies

Metal Cutting : 976

Metal Forming : 466

Metal Cutting : 227

Metal Forming : 275

1

Automotive, automobile

components

Automotive, automobile

components

Toyota Motors, Isuzu, Rober

Bosch, Faurecia

Astra Daihatsu, Suzuki

Indomobil, Honda, Yamaha

Initially, Indian manufacturers may focus on Thailand and Indonesia as these countries have a strong automotive and

auto components production base; hence Indian manufacturers may target on launching their products of

strength, i.e., turning centres, vertical machining centres and grinding machines


46

Total Machine Tools

Market (In USD Mn)

Segments to focus

Major end user

companies

Metal Cutting : 206

Metal Forming : 138

Metal Cutting : 96

Metal Forming : 99

2

Electrical and electronics,

automotive, auto components

Semiconductor and

electronics, automotive

Malaysian Pacific Industries,

Hong Leong Industries,

Proton, Perodua

Intel, Renesas, Acrosemi,

Ford, GM, Hino Motors,

Honda

MALAYSIA VIETNAM

Once the Indian manufacturers establish footprints in Thailand and Indonesia, they may focus on Malaysia and

Vietnam who are strong in electrical, electronics and semiconductors segment; however, it is expected that the

automotive industry in these countries will grow strong in next 4 - 5 years


47

Total Machine Tools

Market (In USD Mn)

Segments to focus

Major end user

companies

Metal Cutting : 21

Metal Forming : 6

Metal Cutting : 10

Metal Forming : 4

3

Automotive, Food &

Beverages

Semiconductor and

electronics, automotive

Nissan, Suzuki, MitsubishiHitachi, Toshiba, Texas

instruments, Philips

The machine tool market in Myanmar and Philippines is currently in a nascent stage; Hence it is recommended not to

focus on these countries on an immediate basis; however, the automotive segment in Myanmar and electronics

segment in Philippines is in a growing stage and can be looked upon in 7 - 8 years

MYANMAR PHILIPPINES

Value Chain

48

Source country /

Machine supplier

End customer

Agent /

distributor /

trader

Consultant

The agent or distributor

import machines of

specifications required

by the end user

Agent /

distributor

supplies the

machine to the

end user

In very few cases

wherein import of high

value and advanced

technology machines

are involved, end users

may take advise from

consultants wrt the

brand of the machine

In all the countries under study, demand of machine tools is met through

imports

Imports are mostly done through traders / importers who acts as an

intermediary between the machine supplier and end user

Some agents / distributors are also present in these countries who mostly

handles multiple brands

Following are some of the agents observed:

Name of

agent/distributorCountry Brands Products

IPM Malaysia Malaysia

Agma, Takisawa, L & L, Aristech,

Dowell, Mytech, Honor, Freeport,

Mitsui Seiki, Para Mill, Shinzawa

Metal cutting machine,

grinding machine

Hasil Karya SDN

BHDMalaysia

Ermaksan, Top turn, Mastika, Litz,

DMTG, SMTCL

Turning centers, Milling

machines

PT Mommentum

DjajaIndonesia Koika Laser cutting machines

Kawan Lama Indonesia Multiple brandsHydraulic presses,

bending machines

4. COUNTRY WISE ANALYSIS

THAILAND

Overview - Thailand

51

Country Overview

Population 67,448,120 (2013)

Annual population

growth rate0.5%

GDP USD 662.6 Bn

GDP Real Growth 6.4%

The World Bank has upgraded Thailand‟s income categorization from a lower-middle income economy to an upper-middle

income economy in 2011

Despite facing a number of political challenges, Thailand has made great progress in social and economic issues

Thailand has been one of the great development success stories, with sustained strong growth and impressive poverty

reduction

As a result of sensible economic policies, Thailand continues to make progress towards meeting the Millennium Development

Goals (MDGs) and is likely to meet most of the MDGs on an aggregate basis

Source : World Bank

Overview of the Economy

52

Currency Thai Baht(TBH)

Fiscal year 1 October – 30 September

GDP by sectorAgriculture (8.4%), Industry (39.2%),

Services (52.4%) (2012)

Exports USD226,155.8 million (2012)

Main export

partners

China(11.7%), Japan (10.2%), United

States (9.9%), Hong Kong (5.7%),

Malaysia (5.4%), Indonesia (4.9%),

Singapore (4.7%), Australia (4.3%)

Export Goods

Textiles, footwear, fishery products,

rice, rubber, jewelry, automobiles,

computers and electrical appliances

Imports USD217,818.9 million (2012)

Main import

partners

Japan( 20.0%),China( 14.9%)

United Arab Emirates (6.3%)

Malaysia(5.3%),United States (5.3% )

Import goods

Capital and intermediate goods, raw

materials, consumer goods, fuels

Foreign

reservesUSD171.2 billion (19 July 2013)

The GDP of Thailand is very Fluctuating from the year

2008 because global financial crisis it is expected to grow

5% stable growth rate in the next few years

4.8

2.2

5.3

7.1

6.3

4.65.1 5

2.6

-2.3

7.8

0.1

5.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GDP Growth %

GDP Growth %

Source : World Bank

Machine & Metalworking Industry - Thailand

53

Imports of machinery and parts into Thailand has grown over the last few years and

is estimated to continue to grow in the future due to the limited supply of domestic

high end machinery

Machinery and parts is one of the 5 most imported goods into Thailand

Thailand‟s status as regional export hub allows local machinery and parts suppliers

to benefit from the economic growth of its neighbours

Rapid development in the region coupled with favourable trade relations after signing

of AFTA resulted in a growth in the machinery and parts exports

Exports are estimated to continue to grow due to growing demand from developing

countries like Vietnam, Malaysia and Indonesia

Machine Tool Industry - Thailand

54

Growth in Thailand‟s automotive and E&E industries is expected to fuel demand for

modern machine tools

Automotive and auto parts firms are the biggest buyers of machine tools purchasing 35%

of the domestic market

The supporting metalworking industry follows with 27% while the E&E industry buys 14%

With a limited number of domestic enterprises specializing in the manufacture of

machine tools, most of the demand is met by imports

Top 3 export categories of machine tools include parts and accessories for

machines, machine tools for the removal of material and lathes for removing metal

THE THAILAND AUTOMOTIVE INDUSTRY

Overview

The Thailand automotive industry is the largest in Southeast Asia and the 9th largest in the World in

2012.

The automotive industry is a vital sector for the country‟s economy as it contributes greatly to exports

and trade inflows

The Thailand industry has an annual output of near 1.5 million vehicles (mostly commercial vehicles),

more than countries such as Belgium, the United Kingdom, Italy, Czech Republic, and Turkey

Thailand has approximately 690 Tier 1 auto parts suppliers and 1,700 Tier 2 and 3 suppliers. More

than half of the Tier 1 suppliers are foreign-majority companies. Of the top 100 auto parts

manufacturers in the world, 50% have factories in Thailand. The country‟s manufacturing base is

strong enough to supply all of the necessary parts, from engine parts to interior and body parts.

Major multinational automotive industry leaders in Thailand include Toyota Motors, Isuzu, Honda

Automobile, Nissan Motors, General Motors, Mitsubishi Motors, Suzuki Motors, BMW Manufacturing,

Tata Motors, Ford Motor and Mazda.

Thailand‟s automotive industry export value in 2011 was US$17 billion, the second-largest export

value after computer parts and components

56

Continue…

57

2005 2006 2007 2008 2009 2010 2011

Passenger Cars 277,603 298,819 329,223 399,435 313,442 554,267

Commercial Cars

(excluding one-ton pickups)24,846 22,592 23,556 17,791 15,202 24,278

One-ton Pickups 822,867 872,474 948,370 974,502 670,734 1,066,759

Total 1,125,316 1,193,885 1,301,149 1,391,728 999,378 1,645,304

Y-O-Y Growth (%) 6% 9% 7% -28% 65%

Annual production of vehicles (In units)

Source : The Thai Automotive Industry Association

Geographical Cluster of automobile Industry

58

Name of Company Location

Toyota Motor Thailand (Samrong) Samutprakarn

Isuzu Motors (Thailand)(Samrong) Samutprakarn

Siam Nissan Automobile Samutprakarn

Thai Swedish Assembly (Volvo

Truck

Samutprakarn

Auto Alliance (Thailand)

(Ford&Mazda)

Rayong

General Motors (Thailand)

(Chevloret)

Rayong

BMW Manufacturing (Thailand) Rayong

Ford Motors (Thailand) Rayong

Suzuki Motor Thailand Rayong

Mitsubishi Motors Thailand Chonburi

Triumph Motorcycle Thailand Chonburi

Honda Automobile (Thailand) Ayudhaya

Thai Suzuki Motor Pathumthani

Toyota Motor Thailand (Ban Po) Chachoengsao

THE THAILAND AUTO COMPONENTS

INDUSTRY

Automobile Component Industry

Demand for Thailand-made automotive parts is growing. There are approximately 1,800 automotive

suppliers already in the country, of which 709 are OEMs

All of the major Japanese automakers have opened manufacturing sites in Thailand. Many of their

parts manufacturers, such as France‟s Valeo, Germany‟s Bosch, US-based TRW, Britain‟s GKN and

Japan‟s Denso, Mitsuba and Mitsubishi, have followed suit to serve their customers

Local manufacturers supply 80-90% of the parts used in pickup truck assembly, and as much as 70%

of those for passenger cars. Moreover, the country produces nearly 100% of the parts used in the

assembly of motorcycles.

The majority of Thailand‟s automotive parts exports are OEM parts (US$4,757 million), comprising

75% of all exports. This is followed by engines (US$889 million) at 15% and spare parts (US$551

million) at 9%.

Projects in high-tech vehicle parts and components manufacturing are considered priority activities by

the Thailand Board of Investment (BOI), which means they are exempt from machinery import duties

and from corporate income tax for eight years, regardless of location

The growth prospects of domestic demand for locally manufactured auto parts are high

Thailand has a robust 1,700 factories and more than 420,000 skilled workers in the automotive

supporting industry

60

Continue…

61

Major Global OEM Parts Suppliers in Thailand

Robert Bosch Denso Continental

Faurecia Johnson Controls ZF

Friedrichshafen

Yazaki Lear Sumitomo Electric

CalsonicKansei JTEKTHitachi

Automotive

Autoliv Mahle Dana

BorgWarner Schaeffler NTN

Tenneco NHK SpringKoito

Manufacturing

Federal-MogulBridgestone/Firest

oneMichelin

GKN Driveline Goodyear Showa

TE Connectivity Draexlmaier Asahi Glass

Akebono Brake Philips Electronics PPG Industries

75%

15%

9%

1%

Thailand's Auto Part Export

OEM Part Engine Spare Part Other

Source : Thai Autoparts Manufacturers Association

Cluster of auto component Manufacturer

62

Pathumthani

Total suppliers: 39

Body Parts: 18%,

Engine Parts; Electrical Parts: 13%

each,

Suspension & Brake Parts: 10%,

Drive, Transmission & Steering Parts;

Accessories: 8% each,

Other: 31%

Bangkok

Total suppliers: 232

Body Parts: 9%, Engine Parts; Electrical

Parts; Drive, Transmission & Steering

Parts; Accessories: 6% each


Mold & Die: 3%,

Other: 60%

Samutprakarn

Total suppliers: 158

Body Parts: 22%, Electrical Parts: 15%,

Engine Parts; Drive, Transmission &Steering

Parts: 8% each, Suspension & Brake Parts: 5%,

Mold&Die: 4%, Accessories: 3%, Other: 36%

Rayong

Total suppliers: 41

Body Parts: 24%,

Engine Parts; Drive, Transmission &

Steering Parts: 15% each,


Electrical Parts: 10%,

Accessories: 7%,

Mold & Die: 2%,

Other: 15%

Chonburi

Total suppliers: 55

Body Parts: 25%,

Engine Parts: 22%,

Drive, Transmission & Steering Parts: 15%,

Electrical Parts: 9%,

Accessories: 5%,


Mold & Die: 4%, Other: 16%

Source : Thai Autoparts Manufacturers Association

THE THAILAND SEMICONDUCTOR

AND ELECTRONICS INDUSTRY

Overview

The electronics industry is one of Thailand‟s largest in the manufacturing sector.

Thailand‟s main electronics exports are hard disk drives (HDD) and integrated circuits (IC), which

account for about 54% and 29% of total electronic exports, respectively. Thailand produces more than

40% of the world‟s HDDs

Exports reached US$ 53 Billion in 2011 which contributed nearly 23% of Thailand's annual export

revenue. During the first half of 2012, the Board of Investment (BOI) received applications for 134 E&E

projects valued at nearly THB 59.7 Billion (US$ 1.9 Billion) in potential new investments by foreign

companies

As the world leader in hard disk drives (HDDs) production and a leading manufacturer in the integrated

circuits and semiconductors industries, Thailand provides most voluminous electrical appliances base

in the ASEAN region

The Board of Investment of Thailand grants special incentives to investors in the electronics sector

64

Source : The Association of Thai Electrical & Electronic Industries

Geographical Cluster

65

Name of company Location

Toshiba Semiconductor Pathumthani

Sony Semiconductor Pathumthani

Samsung Electronics Co., Ltd Chonburi

JVC Manufacturing Pathumthani

LG Mitr Electronics Co., Ltd Samut Sakhon

IBM Storage Product Pachinburi

Shin-Ei High Tech Co., Ltd Nakhonratchasima

Delta Electronics Samutprakarn

Royal Electronic Factory Chachoengsao

Intel Card Industries Co., Ltd. Petchburi

PathumthaniPachinburi

Chonburi

Samutprakarn

Nakhonratchasima

TOTAL MARKET FOR MACHINE TOOLS

IN THAILAND

Total Market size of Machine tool in Thailand

Type of Machine

Total Value of Machine (in USD Mn)

FY 2012 FY 2013


Turning Centers 466 248

Machining Centers 302 196

Grinding Machines 166 61

EDM‟s 41 16

Total 976 520


Presses(Mechanical/Hydraulic/Servo) 64 70

Laser 70 58

Press Brakes 85 31

Cold & Hot Forging 248 227

Total 466 386

67

ANALYSIS OF METAL CUTTING

MACHINES MARKET IN THAILAND

ANALYSIS OF MACHINING CENTERS

MARKET IN THAILAND

Market analysis for import of Machining Centers - Country wise

70

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 128 220 65% 73%

Taiwan 53 58 27% 19%

Singapore 4 6 2% 2%

United States 3 5 2% 2%

Germany 3 7 1% 2%

China 2 2 1% 1%

Others 2 5 1% 1%

Total 196 302

Segment wise break up of total market

35%

30%

25%

15%

Automobile Automotive components

Electrical and Electroncis Others

Source : National Statistical Office of Thailand

71

196208

224

245

269

296

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 196

FY 2014 208 6%

FY 2015 224 8%

FY 2016 245 9%

FY 2017 269 10%

FY 2018 296 10%

Market forecast of machining centers for next 5 years

196208

224245

269296

6%

8%

9%

10%

10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

50

100

150

200

250

300

350

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Projected market size (In USD Mn)

Projected Market Size (In USD Mn) Growth in %

Source : End user industry associations, machine tool associations

ANALYSIS OF TURNING CENTERS

MARKET IN THAILAND

Market analysis for import of Single Spindle Lathe

73

Country

Market Size

(in USD Mn)Market Share (%)

2013 2012 2013 2012

Japan 159 324 64% 69%

Taiwan 42 64 17% 14%

China 14 20 6% 4%

Switzerland 9 29 4% 6%

Germany 5 1 2% 1%

Korea 4 5 2% 1%


Others 11 19 3% 4%

Total 248 466


45%

30%

15%

10%




74

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 248

FY 2014 260 5%

FY 2015 279 7%

FY 2016 301 8%

FY 2017 328 9%

FY 2018 358 9%

Market forecast of turning centers for next 5 years


248 260279

301328

358

5%

7%

8%

9% 9%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

0

50

100

150

200

250

300

350

400

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF GRINDING MACHINE

MARKET IN THAILAND

Market analysis for import of Grinding Machine

76

Country

Market Size


2013 2012 2013 2012

Japan 45 141 75% 85%

Taiwan 7 9 11% 5%

China 2 3 3% 2%

Switzerland 1 3 2% 2%

Germany 3 6 5% 4%


Others 2 3 3% 2%

Total 61 166


45%

30%

15%

10%




77

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 61

FY 2014 64 3%

FY 2015 69 3%

FY 2016 74 5%

FY 2017 81 6%

FY 2018 88 6%

Market forecast of grinding machines for next 5 years


61 6469

7481

883% 3%

5%

6% 6%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0

10

20

30

40

50

60

70

80

90

100

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF ELECTRICAL

DISCHARGE MACHINES MARKET IN

THAILAND

Market analysis for import of Electrical Discharge Machines

79

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

China 4.9 10.9 30% 26%

Japan 4.6 20.3 28% 49%

Taiwan 2.8 2.0 17% 5%

Germany 2.5 3.4 15% 8%

Singapore 0.5 3.1 3% 8%

Korea 0.4 0.6 2% 1%

Others 0.5 1.0 3% 3%

Total 16 41


40%

30%

20%

10%




80

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 16

FY 2014 17 4%

FY 2015 18 5%

FY 2016 19 6%

FY 2017 21 6%

FY 2018 23 7%

Market forecast of EDMs for next 5 years


1617

18

19

21

23

4%

5%

6% 6%

7%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0

5

10

15

20

25

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF METAL FORMING

MARKET IN THAILAND

ANALYSIS OF LASER CUTTING MACHINE

MARKET IN THAILAND

Market analysis for import of Laser Cutting Machines

83

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 28.2 33.5 49% 48%

Germany 7.1 7.3 12% 10%

China 6.4 6.0 11% 9%

Singapore 4.5 7.4 8% 11%

Netherlands 3.6 1.0 6% 1%

Switzerland 1.5 0.8 3% 1%

Others 6.3 13.7 9% 20%

Total 58 70


45%

35%

15%

5%

Automotive & components Ship building & repair

General Engineering Others


84

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 58

FY 2014 62 7%

FY 2015 67 8%

FY 2016 72 8%

FY 2017 80 10%

FY 2018 88 10%

Market forecast of laser cutting machines for next 5 years


5862

6772

80

88

7%

8% 8%

10% 10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

10

20

30

40

50

60

70

80

90

100

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF HYDRAULIC PRESS

MARKET IN THAILAND

Market analysis for import of Hydraulic Presses

86

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 48.3 44.4 69% 70%

China 5.5 4.7 8% 7%

Korea 4.5 0.8 6% 1%

Taiwan 4.0 3.6 6% 6%

Malaysia 3.5 2.8 5% 4%

Germany 1.6 0.4 2% 1%

Others 2.8 4.2 2% 11%

Total 70 64


40%

30%

20%

10%




87

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 70

FY 2014 76 9%

FY 2015 85 11%

FY 2016 95 12%

FY 2017 107 13%

FY 2018 121 13%

Market forecast of presses for next 5 years


70

76

85

95

107

121

9%

11%

12%

13% 13%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0

20

40

60

80

100

120

140

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF PRESS BRAKES

MARKET IN THAILAND

Market analysis for import of Press Brakes

89

Country

Market Size

(in USD Mn)

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 12.1 61.2 38% 72%

Korea 3.8 7.7 12% 9%

China 3.6 4.4 12% 5%

Taiwan 3.1 4.9 10% 6%

Belgium 2.6 0.1 8% 1%

United States 1.9 1.6 6% 2%

Others 4.4 5.0 12% 5%

Total 31 85


35%

25%

25%

15%

Automotive components Automobile



90

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 31

FY 2014 33 4%

FY 2015 36 5%

FY 2016 39 5%

FY 2017 43 7%

FY 2018 47 7%

Market forecast of press brakes for next 5 years


3133

3639

43

474%

5% 5%

7% 7%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0

5

10

15

20

25

30

35

40

45

50

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF FORGING

MACHINES MARKET IN THAILAND

Market analysis for import of Forging Machines

92

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 121.7 142.9 54% 58%

Taiwan 33.3 29.5 15% 12%

Korea 26.0 6.9 11% 3%


Malaysia 14.2 18.2 6% 7%

Germany 4.7 9.7 2% 4%

Others 12.1 32.3 4% 10%

Total 227 248


45%

40%

15%

Automotive components Automobile Others


93

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 227

FY 2014 243 7%

FY 2015 265 9%

FY 2016 289 9%

FY 2017 323 12%

FY 2018 362 12%

Market forecast of forging machines for next 5 years


227243

265289

323

362

7%

9% 9%

12%

12%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0

50

100

150

200

250

300

350

400

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



Projected consumption for machine tool industry (In USD Mn)

94

14421543

16511775

1917

2089

2277

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

The machine tool market is expected to grow at a growth rate of 8% over the next 5 years

The main segments that is expected to drive the market are Automotive, Auto components and

electrical & electronics

Also, the increased amount of FDIs and domestic investments will also act as catalysts for the

growth of Machine tool industry in Thailand

Board of Investment (BOI) incentives for machine tool manufacturers

95

According to BOI, following are considered as priority activities of special importance

and benefits to the country:

Manufacture of machinery, equipment or parts that have engineering design

Manufacture of farm machinery or equipment

Manufacture of food processing machinery or equipment

Manufacture of energy conserving machinery or equipment

All companies involved in above mentioned activities receive an 8 year corporate

income tax holiday and are exempt from import duties on machinery, regardless of

location, as well as other location based incentives, and are not subject to the

corporate income tax exemption cap

BOI also offers location based incentives for the manufacture of hand tools and

measuring tools, manufacture of metal products, including metal parts

Institutional Support

96

The Thai Government supports the continuous growth of machinery and metal working

industries. As a part of this, Thailand offers many resources for R&D, technical training

and industrial organizations which include:

Thai - German Institute

National Metal and Materials Center (MTEC)

Bureau of Supporting Industries Development (BSID)

Metal-working and Machinery Industry Development Institute

Thai Tool and Die Industry Association (TDIA)

Thailand – Japan Technology Promotion Association (TJTPA)

Metals and Materials Research Center

Opportunities for Indian manufacturers in Thailand

97

Indian machine tool manufacturers have high degree of acceptability in Thailand

The Thai government and Board of Investment supports all new investments by

providing incentives

The main factors to be considered by an Indian manufacturing to enter into the

Thailand market are:

Excellent after sales service support

Local employee strength to overcome language barriers

Competitive price compared to Japanese suppliers

Joint Venture with a local engineering support company

They should have good contacts with associations like Thai Board of Investment and

Metal-working and Machinery Industry Development Institute

They should take part in all machine tool related exhibitions and increase the

awareness about Indian manufacturers and products

List of exhibitions and magazines

98

ASEAN‟s largest platform for metalworking with the latest technologies from over 2700

brands plus new knowledge and regional collaborations for 70,000 visitors

The Leading International Industrial Machinery Exhibition, and perfect synergy for

creating new business

Thailand's only international exhibition on machinery and technologies for mold and die

manufacturing

A showcase of products, services and technologies , services and technologies and

distribution of raw materials, production to warehousing

Major Magazines

VIETNAM

Overview of the Vietnam

Viet Nam is located in Southeast Asia with a total land area

of 329,314 square kilometers and a coast line of

approximately 3,200 kilometers

According to a forecast by the Price water house Coopers

in 2008, Vietnam may be the fastest growing of emerging

economies by 2025, with a potential annual growth rate of

about 10% in real dollar terms

Vietnam is a small but fast-growing manufacturer of

electronics and computer components almost half of the

export done through this sector

Major trading partners include the United States, Australia,

Singapore, Germany, United Kingdom Taiwan, South

Korea, Thailand ,Malaysia Japan and China

Vietnamese export goods have gone to 200 markets of

which the volume of 10 markets reaches over 1 billion Rs.

Some key goods of Vietnam rank in high positions and

impact upon the world market. Examples are

rice, seafood, coffee, rubber, pepper, cashews, and

garment.

Vietnam's major economic regions include Ho Chi Minh city,

Hanoi.

100

Country Map

Hanoi is the capital of Vietnam and the country's

second largest city

With an estimated 90.3 million inhabitants as of

2012, it is the world's 13th-most-populous

country, and the eighth-most-populous Asian country.


101

Currency Vietnamese dong

Fiscal year Calendar year

Trade

organizationsAFTA, WTO, APEC, ASEAN, FAO

GDP 5.42% (2013)

GDP by sectorAgriculture(21.6%), Industry

(40.8%,) services(37.6%)

Exports US$132.17 billion

Main export

partners

United States (18.8%), Japan

(13.2%), China (10.3%), Australia

(6.9%), Singapore (5.2%), Germany

(4.0%), and the United Kingdom

(3.8%)

Export GoodsCrude oil ,Textiles And Garments,

Fisheries Products And Electronics

Imports US$113.79 billion

Main import

partners

China (13.9%), Taiwan (11.6%),

Singapore (11.3%), Japan (11.1%),

South Korea (10.4%), Thailand

(5.8%), and Malaysia (3.8%)

Import goods

Machinery, Refined Petroleum Steel,

Material For The Textile Industry and

Cloth

In Vietnam, industry and construction constitute the biggest

sector of the economy (41 percent of total GDP)

agriculture, forestry and fishing represent 22 percent of

total output and services account for 37 percent of GDP

Vietnam’s GDP growth has been relatively stable while

other ASEAN countries experienced negative growth

during the Asian financial crisis

6.9

7.1

7.3

7.8

8.4

8.2 8.5

6.3

5.3

6.8

5.9

5.6

5.4

GDP Growth %

GDP Growth %

Source : World Bank

Key Sectors

Industry and manufacturing

The top manufacturing sectors are food processing, cigarettes and tobacco, textiles, chemicals, and electrical goods

experienced rapid growth. Almost a third of manufacturing and retail activity is concentrated in Ho Chi Minh City. The

country is steadily becoming the global manufacturing center. Its plastics and rubber industries are developing quickly

to serve a diversified industrial base .Low-cost and plentiful labor along with its motivated and literate workforce have

helped Vietnam become a magnet for investment in the manufacturing sector, much of it located in the country‟s

dedicated industrial zones.

Agriculture, Fishery and mining

Among the rapidly-growing industrial sectors in Vietnam, perhaps none is more important to the country than

agriculture. Seventy percent of Vietnam‟s populace lives in rural areas, and, even in today‟s industrialized nation, half

the workforce depends on agriculture, forestry or fisheries for its livelihood Petroleum is the main source of energy,

followed by coal, which contributes about 25% of the country‟s energy

Semiconductor and Electronics

Vietnam is a small but fast growing manufacturer of electronics and computer components. The industry grows with a

rate of 27% per year, reaching an export revenue of Rs 3.6bill. in 2010, from Rs 782 mill in 2000. The industry‟s export

accounts for 4.4% of Vietnam‟s total export value. Thailand and Japan are the major markets of the industry. There are

more than 350 enterprises including state owned sector, private sector and Foreign Direct Investment (FDI) sector, in

which 30% are FDI enterprises. Like Asian countries, FDI companies dominate both the domestic market (80%) and

export market (90%)

102

THE VIETNAM SEMICONDUCTOR AND

ELECTRONICS INDUSTRY

Overview

Assembling of electronic Products like TV ,Fridge, Washing Machine, Smartphone's, Computers and

their parts for the domestic and for export are the main activities of this industry

The companies like Canon, Fujitsu, Intel, Foxconn are the major exporters and the companies like

Samsung, Panasonic, Toshiba. LG, TCL are in both domestic and Export market

Country's consumer electronics market; generally characterized by computing devices, mobile handsets

and video, audio and gaming products, was projected to be worth about US$ 5.2 billion in 2012. This is

expected to increase to US$ 8.9 billion by 2016

The electronics devices market is forecast to increase at an overall compound annual growth rate

(CAGR) of 14% through to 2016

Vietnamese government decided to set up a wafer fabrication plant in Ho Chi Minh city. The technology

chosen for this first waferfab is 0.18um/200mm costing US$300million. This fab will be able to make

about 400 million chips per year targeting minimum business revenue of aboutUS$120 million/year

104

Source : Vietnam Electronic Industries Association

Continue…

105

Vietnam’s electronics, computers and components export revenue from 2005-2012 (in billion US$)

Source: General Department of Vietnam Customs

1.7

2.2

2.7 2.8

3.5

2.7

7.8

0

1

2

3

4

5

6

7

8

9

2006 2007 2008 2009 2010 2011 2012

Vietnam's high-tech exports have been on the rise, with an annual average increase of over 21 percent

and reaching nearly 50 countries and regions worldwide, which helped boosting the country's electronic

industry

Major Companies and their Geographic location

Name of Company Location

Intel Ho Chi Minh City

Renesas Ho Chi Minh City

Acrosemi Cong Hoa, Tan Binh

Splendid Technology Ho Chi Minh City

Signet Design Solutions Ho Chi Minh City

Dolphin Technology San Jose

Activ eSemi Vietnam Ho Chi Minh City

Viet Vmicro Ho Chi Minh City

VSMC Ho Chi Minh City

Samsung Electronics Bac Ninh

LG Electronics Nhu Qunh town

106

Ho Chi Minh City

San Jose

Ha NoiBac Ninh

Nhu Qunh town

THE VIETNAM AUTOMOBILE INDUSTRY

Overview

Vietnam steel industry is pretty large within the ASEAN region with demand being approximately 13

million tons/year. Growth averages over 15%/year in the last 10 years and is expected to maintain

10%/year in the long term.

Steel industry will witness big changes such as less imports, higher domestic production and greater

investment in raw material.

Construction steel is a big sector that gathers many top domestic steel businesses. Demand forecasts

of construction steel, steel pipe and Galvanized products are optimistic.

Total revenue marks at VND170,000 billion, equivalent to 10% of GDP.

There are 2 main product segments: long steel (bar, roll) and flat steel (plate, sheet) with different

manufacturing chains. Each segment makes up 50% of annual demand.

Long steel segment primarily serves the construction sector and is dominated largely by local

producers

Flat steel demand of about 6.5 million tons/year is used in industries such as shipbuilding, automobiles,

electronics, food. galvanized and tubular products which account for 20% total production are used

significantly in the construction sector

108

Continue…

109

47576

71892

104800

112500 112300108200

99200

2006 2007 2008 2009 2010 2011 2012

Production in unitsMajor Player in the Industry

Ford

GM

Hino Motors

Honda

Isuzu

Mekong Auto Corporation

Mercedes-Benz

Toyota Motor

Vietnam Motors Corp. (VMC)

Vina Star Motors Corp. (VINASTAR)

Source: Vietnam Automobile Manufacturers Association

THE VIETNAM STEEL INDUSTRY

Overview

Vietnam auto industry starts late and the development base is weak. After the reform in 1986, Vietnam

auto industry started In 1991, Vietnam government introduce foreign funds to develop automobile

manufacture and assemble industry. After 20-year development, Honda, Toyota, Ford, GM, etc. entered

Vietnam through sole proprietorship or joint-investment

Currently, the production capacity of complete vehicles in Vietnam is estimated to over 100,000 per year

There are hundreds of auto part manufacture enterprises, most of which are SMEs featured with low

production capacity and low technology. Major products are simple parts, e.g. seats, auto storage

batteries. Generally, auto parts in Vietnam depend on import.

With the economic development, the growth of income per capita and infrastructure construction,

Vietnam market demands more for passenger vehicles and commercial vehicles.

Vietnam auto manufacture enjoys low labor, land and energy cost but also faces imperfect auto industry

chain Vietnam auto industry competes with Thailand, Indonesia and those ASEAN countries as well as

China, Korea, Japan and those assigned with ASEAN agreement.

By 2018, the import tariff for China, Korea and Japan will be 5%. Vietnam government will release a

series of supportive polices to promote domestic automobile industry.

111

Continue…

112

Product 2007 2008 2009 2010 2011 2012

Steel Billet 2.02 2.25 2.70 4.31 4.90 5.29

Finished

Products5.60 5.75 6.90 9.25 9.15 9.21

Long Steel

Products3.95 3.87 4.72 5.65 5.47 5.04

Bar 2.85 2.89 3.49 4.66 4.42 3.97

Wire rods 0.96 0.88 1.03 0.95 1.00 1.04

Sections 0.13 0.082 0.18 0.42 0.34 0.30

CRC 0.39 0.43 0.63 1.7 1.4 1.7

Welded & Steel

Pipe0.52 0.55 0.56 0.67 0.73 0.77

Metallic & Color

Coated0.72 0.90 0.97 1.19 1.47 1.64

Total 17.14 17.602 21.18 28.8 28.88 28.96

0

5

10

15

20

25

30

2007 2008 2009 2010 2011 2012

17.14 17.602

21.18

28.8 28.88 28.96

Production In Mn tons

Production In Mn tons

Source : Vietnam Steel Association

Major Players in the Market

113

Name of Company Projects Capacity( Tons Per Year) Location

Thep Viet –Pomina Group 1,000,000 Ba Ria–Vung Tau

FUCO Co., Ltd 1,000,000 Ba Ria–Vung Tau

Posco Vst 155,000 Dong Nai province

Dana–y Steel 250,000 Da Nang

Hai Binh Duong Steel Co., Jsc 250,000 Da Nang

Lotus Group 200,000 Ba Ria –Vung Tau

An Hung Tuong Co., Ltd 300,000 Binh Duong

HPS Co., Ltd 500,000 HaiPhong

Central Steel Stock Company 250,000 Da Nang

Hoa Phat Steel Company 500,000 Hai Duong

CSVC Sumikin 1200,000 Ba Ria –Vung Tau

Thai Trung Steel Co., Jsc 500,000 Thai Nguyen

Total No of Operating Projects till 2013 20

Projects Under Construction 6

Geographical Cluster

114

Da-Nang

Nha Trang

Ba Ria –Vung TauDong Nai province

HaiPhong

Hai Duong

2933

65

106

2012 2015 2020 2025

Production ( In Mn Tons)

Estimated Production of steel ( In Mn Tons)

THE VIETNAM SHIPBUILDING INDUSTRY

Overview

Shipbuilding is a key industry in Vietnam, which includes three main clusters. Vung Tau area, 160 km

south of Hochiminh city is an offshore shipbuilding cluster with

strong present of Norwegian and foreign companies

Hai Phong is the main bulker-building-cluster and the central (Da Nang,Quang Ngai and Nha Trang) is

cluster for both tankers and bulker

By March 2013, Vietnam order-books consist of 29 vessels (435k DWT in total). Of those, 34% are

tankers, offshore service vessels and bulkers account for 28% each

Domestic ship-owners Foreign ship-owners

– Foreign ship-owners: Farstad Shipping

– PTSC HMM

– Vietsovpetro Densa

– Petrolimex DSL Kumpula

– Vinalines Ezra Holding

– Au Lac German Briese

– Vietnam ministry of National Defense Hyundai Mipo Dockyard Co

Central Mare of Greece

Wilmar International of Singapore

116

Important Shipyards in Vietnam

Huyndai Vinashin Shipyard owned by Huyndai group, locates in Nha Trang province, which is the

busiest shipyard in Vietnam. The shipyard builds tankers, bulkers and tug boats.

Dung Quat shipyard: locates in the central of Vietnam, under PetroVietnam. The shipyard does ship-

repairing, ship-conversion and builds tankers, accommodation barge. The shipyard has ambition of

building AHTS in the near future.

PV shipyard is the Petrovietnam‟s rig builder, locates in the Vietnam oil and gas hub - Vung Tau.

Triyard has two shipyards in Vietnam: Saigon shipyard in Hochiminh city and Sofel shipyard in Vung

Tau. Triyard owned by Ezra Holding.

Song Thu shipyard is under the Ministry of National Defence of Vietnam, locates in Da Nang and

builds specialized vessels. The shipyard is going to build AHTS in the time to come.

Damen-Song Cam shipyard, locates in Hai Phong, builds tug-boats for Damen mainly.

South East Asia Shipyard is under Piriou group (French). The shipyard builds steel/aluminum

vessels up to 100 m in length including artisanal or industrial fishing - Tugs - Offshore oil service ships

- Public service ships - Other service ships.

117

MACHINE TOOL MARKET IN VIETNAM

Total Market size of Machine tool in Vietnam

119


FY 2010 FY 2011 FY 2012


Turning Centers 43.5 46.9 47.5

Machining Centers 5.2 5.2 20.3

Grinding Machines 7.5 7.3 23.0

EDM‟s 3.0 4.1 5.1

Total 59.1 63.5 95.8


Presses(Mechanical/Hydraulic/Servo) 13.0 13.3 8.5

Laser cutting 7.8 11.3 23.5

Forging Machine 22.8 32.5 29.9

Press Brakes 50.0 62.1 36.2

Total 93.7 119.1 98.1


MARKET IN VIETNAM

Market analysis for import of Machining Center ( HMC & VMC) - Country

wise

122

32%

11% 35%

15%

7%

Market Breakup in USD Mn

Aerospace

Semi Conductor & Electronics

Automo OEM and Component Manufacturer

General Machine shop

others

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

Germany 0.33 0.27 - 2% 5% -

Japan 7.82 2.05 2.45 39% 39% 47%

Korea 9.92 0.68 0.77 49% 13% 15%

Singapore 0.27 0.33 - 1% 6% -

Taiwan 1.78 1.77 1.70 9% 34% 33%

China 0.18 0.13 0.23 1% 3% 4%

Others - 0.02 0.03 - - 1%

Total 20.32 5.23 5.17 - - -

Source : General Statistics Office Of Vietnam

123

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 20

FY 2013 21 7%

FY 2014 23 9%

FY 2015 26 10%

FY 2016 28 11%

FY 2017 32 11%

FY 2018 35 11%



2021

2326

28

32

35

7%

9%

10%

11% 11% 11%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

5

10

15

20

25

30

35

40

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF TURNING CENTERS

MARKET IN VIETNAM

Market analysis for import of Horizontal lathe (NC) - Country wise

125

44%

34%

10%

12%


Auto Component Manufacturer

Aerospace

General Engineering

Others

CountryMarket Size

(in USD Mn )

Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

Japan 7.3 5.8 2.5 46% 47% 32%

Korea 0.3 0.7 0.8 2% 6% 10%

Malaysia 0.1 0.1 - 1% 1%

Poland 0.1 - - 1%

Singapore 1.3 0.4 0.2 8% 3% 3%

Thailand 1.7 - 0.8 11% 0% 10%

Taiwan 3.4 3.5 1.5 21% 28% 20%

United States - 0.1 0.7 - - 9%

Austria 0.1 - - - - -

Switzerland 0.2 - - 1% - -

China 1.2 1.5 1.2 7% 12% 16%

Others 0.2 0.2 0.0 2% -

Total 15.8 12.3 7.7 100% 100% 100%


Market analysis for import of Automatic single Spindle Turning Center-

Country wise

126

CountryMarket Size

(in USD Mn )

Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

Japan 3.2 5.2 5.1 51% 54% 61%

Taiwan 1.2 1 0.7 19% 11% 8%

China 0.9 2.7 1.4 14% 28% 17%

Korea (Republic) 0.2 0.2 0.7 4% 2% 8%

Russian

Federation0.1 - 0.1 2% 1%

Singapore 0.2 0.3 - 3% 3%

Ukraine - - 0.1 - 1%

United States of

America- 0.1 0.1 - 1% 1%

Canada 0.4 - - 6% - -

India 0.03 - 0.02 1% - -

Others - 0.1 0.2 - 1% 3%

Total 6.3 9.7 8.4 - - -

44%

34%

10%

12%



Aerospace

General Engineering

Others


Market analysis for import of Automatic Multi-Spindle Turning Center-

Country wise

127

CountryMarket Size

(in USD Mn )

Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

Japan 17.17 17.72 17.62 67.8% 71.1% 64.1%

Taiwan 4.38 4.17 4.58 17.3% 16.7% 16.7%

China 1.28 0.7 1.92 5.1% 2.8% 7.0%

Korea (Republic) 0.93 1.17 0.88 3.7% 4.7% 3.2%

United States 0.5 0.4 0.53 2.0% 1.6% 1.9%

Thailand 0.45 0.12 1.8% 0.5% 0.0%

Germany - 0.17 1.47 0.7% 5.4%

Denmark 0.02 - - 0.1%

United Kingdom 0 - - 0.0%

Hongkong 0.1 - 0.02 0.4% 0.1%

India 0.02 - 0.02 0.1% 0.1%

Italy 0.02 0.03 0.0% 0.1% 0.1%

Malaysia 0.33 - - 1.3%

Philippines 0.03 0.05 - 0.1% 0.2%

Russian Federation 0.1 - 0.03 0.4% 0.1%

Singapore - 0.08 0.03 0.3% 0.1%

Australia 0.02 0.2 0.27 0.1% 0.8% 1.0%

Others - 0.14 0.05 0.6% 0.2%

Total 25.33 24.93 27.47 - - -

44%

34%

10%

12%



Aerospace

General Engineering

Others


128

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 48

FY 2013 49 4%

FY 2014 52 5%

FY 2015 55 6%

FY 2016 58 6%

FY 2017 63 8%

FY 2018 68 8%



48 5052

5659

6469

4%

5%

6% 6%

8% 8%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0

10

20

30

40

50

60

70

80

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




IN VIETNAM

Market analysis for import of Grinding Machine (NC) -Country wise

130

CountryMarket Size (in USD Mn )

Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

Japan 0.23 1.55 0.82 23% 56% 85%

Taiwan 0.38 0.48 0.12 38% 18% 12%

United States 0.12 0.03 0.02 12% 1% 2%

Germany 0.02 0.07 - 2% 2% -

Korea (Republic) 0.08 0.38 - 9% 14% -

Thailand 0.12 - - 12% - -

China 0.03 0 0.01 4% - 1%

Others - 0.25 - - 9% -

Total 1 2.78 0.95 - - -

26%

45%

22%

7%


Auto OEM & Auto component

Shipbuilding

General Engineering

Others


Market analysis for import of other Grinding Machine -Country wise

131


Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

Japan 14.82 1.43 2.99 67% 32% 46%

Germany 4.94 0.16 0.38 22% 4% 6%

Taiwan 0.8 1.53 0.83 4% 34% 13%

China 0.4 0.72 1.36 2% 16% 20%

Thailand 0.39 0.32 0.45 2% 7% 7%

Italy 0.01 0.08 0 0% 2% 0%

Switzerland 0.22 - - 1% 0% -

Korea 0.18 0.06 0.18 1% 1% 3%

United Kingdom - 0.01 0.18 - 0% 3%

Others 0.22 0.02 0.19 1% 4% 2%

Total 21.98 4.33 6.56

26%

45%

22%

7%



Shipbuilding

General Engineering

Others


132

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 23

FY 2013 24 6%

FY 2014 26 8%

FY 2015 29 9%

FY 2016 32 10%

FY 2017 35 10%

FY 2018 38 10%



2324

2629

3235

38

6%

8%

9%

10% 10% 10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

5

10

15

20

25

30

35

40

45

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF ELECTRICAL DISCHARGE

MACHINE IN VIETNAM

Market analysis for import of EDM -Country wise

134


Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

China 2.06 1.36 0.84 41% 33% 28%

Thailand 1.37 0.82 0.19 27% 20% 6%

Korea (Republic) 0.64 0.36 0.14 13% 9% 5%

Japan 0.43 0.65 1.2 8% 16% 41%


Singapore 0.21 0.21 0.12 4% 5% 4%

Taiwan 0.11 0.35 0.42 2% 9% 14%

Germany - 0.04 - - 1% -

Others - 0.26 0.05 - 7% 2%

Total 5.09 4.06 2.97 - - -

35%

42%

15%

8%

Market Breakupin USD Mn

Auto OEM & Auto Component

Semiconductors & Electronics

Dies & Moulds

Others


135

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 5

FY 2013 5 5%

FY 2014 6 7%

FY 2015 6 8%

FY 2016 7 9%

FY 2017 7 9%

FY 2018 8 9%



5 56

67

78

5%

7%

8%

9% 9% 9%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

0

1

2

3

4

5

6

7

8

9

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MACHINE MARKET IN VIETNAM

ANALYSIS OF LASER CUTTING MARKET

IN VIETNAM

Market analysis for import of Laser Cutting Machine-Country wise

138

Country Market Size (in USD Mn ) Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

Japan 12.65 3.63 2.32 54% 32% 30%

China 5 3.79 2.45 21% 34% 31%

Taiwan 1.43 0.35 0.36 6% 3% 5%

Korea (Republic) 1.35 1.08 1.14 6% 10% 14%

United States 1.27 0.61 0.28 5% 5% 4%


Italy 0.44 0.66 0.35 2% 6% 4%

Austria 0.11 0.15 0 0.4% 1%

Germany 0.09 0.13 0.26 0.4% 1% 3%

India 0.08 0.08 0 0.3% 1% 0%

United Kingdom 0.05 0.04 0.09 0.2% 0.3% 1%

Hongkong 0.05 0.01 0.03 0.2% 0.1% 0.4%

Singapore 0.04 - - 0.2% - -

Others 0.01 0.75 0.58 - 7% 7%

Total 23.54 11.26 7.85 - - -

54%

35%

8%

3%


Semiconductors & Electronics


General Engineering

Others


139

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 24

FY 2013 25 5%

FY 2014 27 7%

FY 2015 29 8%

FY 2016 32 9%

FY 2017 35 9%

FY 2018 38 9%



24 2527

2932

35

38

5%

7%

8%

9% 9%9%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

0

5

10

15

20

25

30

35

40

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF PRESSES MARKET IN

VIETNAM

Market analysis for import of Hydraulic Presses - Country wise

141

CountryMarket Size (in USD

Mn )

Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

China 3.06 5.79 3.32 36.2% 43.5% 25.5%

Taiwan 2.05 1.77 2.2 24.3% 13.3% 16.9%

Korea 1.44 0.73 1.36 17.1% 5.5% 10.4%

Italy 0.25 0.34 4.03 2.9% 2.6% 31.0%

Germany 0.01 0.3 0.01 0.2% 2.3% 0.1%

Japan 0.84 3.51 1.57 9.9% 26.4% 12.1%

Denmark 0.01 0.02 - 0.1% 0.1%

Finland 0.11 0.08 0.14 1.2% 0.6% 1.1%

France 0.01 - - 0.1% - -

United Kingdom - 0.01 - - 0.1%

Hongkong 0.01 0.36 - 0.2% 2.7% -

Hungary 0.18 - 2.1% 0.0% -

Indonesia 0.09 0.05 - 1.1% 0.3% -

Malaysia 0.15 0.1 1.8% 0.7%

Singapore 0.01 0.04 - 0.1% 0.3% -

Thailand 0.04 0.17 - 1% 1.3% -

Turkey 0.02 - - 0.2% - -

United States 0.09 0.09 0.14 1.0% 0.7% 1.1%

Australia 0.1 0.02 0.07 1.1% 0.1% 0.5%

Others - 0.04 0.06 - 0.3% 0.5%

Total 8.46 13.31 13 - - -

26%

22% 33%

12%

7%


Auto component

Steel

Semiconductor & Electronics

Mining & Construction equipments

Others


142

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 36

FY 2013 37 4%

FY 2014 39 5%

FY 2015 42 6%

FY 2016 44 6%

FY 2017 48 8%

FY 2018 52 8%



9 9 1010

1111

12

3%

4%

5% 5%

7% 7%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0

2

4

6

8

10

12

14

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF PRESS BRAKES MARKET

IN VIETNAM

Market analysis for import of Press Brakes - Country wise

144

Country Market Size (in USD Mn )Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

Japan 16.29 9.3 14.51 45% 15% 29%

China 7.62 9.46 14.44 21% 15% 29%

Taiwan 3.77 5.94 9.34 10% 10% 19%

Korea 4.81 4.18 3.41 13% 7% 7%

Germany 0.47 3.45 3.89 1% 6% 8%

Italy 0.39 0.98 2.62 1% 2% 5%

United States 0.74 1.56 0.28 2% 3% 1%

Turkey 0.34 0.25 0.42 1% - 1%

Thailand 0.72 0.03 0.06 2% - -

Netherlands 0.74 0.01 0.03 2% - -

Malaysia 0.07 0.19 0.02 - - -

Australia 0.01 - 0.18 - - -

Austria 0.13 - - - - -

Denmark 0.01 0.12 - - - -

Belgium 0.07 - - - - -

France - 0.01 0.06 - - -

Others 0.02 26.51 0.75 0% 43% 1%

Total 36.25 62.06 50.04 - - -

45%

32%

18%

5%


Steel

Auto OEM & Component Manufacturer

Ship Building

Others


145

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 36

FY 2013 37 4%

FY 2014 39 5%

FY 2015 42 6%

FY 2016 44 6%

FY 2017 48 8%

FY 2018 52 8%



36 3739

4244

4852

4%

5%

6% 6%

8% 8%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0

10

20

30

40

50

60

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF FORGING MARKET IN

VIETNAM

Market analysis for import of Forging Machine -Country wise

147

Country

Market Size

(In USD Mn )

Market Share Based

On USD Mn

2012 2011 2010 2012 2011 2010

Japan 12.17 9.97 5.30 41% 31% 23%

China 5.37 9.17 4.75 18% 28% 21%

Taiwan 3.20 8.62 2.95 11% 26% 13%

Korea

(Republic)2.95 0.93 2.60 10% 3% 11%

United States

Of America1.57 0.45 3.55 5% 1% 16%

Korea

(Republic)2.95 0.93 2.60 10% 3% 11%

Malaysia 0.73 0.30 0.30 2% 1% 1%

Italy 0.15 0.28 0.25 1% 1% 1%

Russian

Federation0.32 0.93 0.00 1% 3% 0%

Others 0.50 0.93 0.53 2% 3% 2%

Total 29.90 32.52 22.83

26%

45%

22%

7%



Shipbuilding

General Engineering

Others


148

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 30

FY 2013 31 2%

FY 2014 32 3%

FY 2015 33 4%

FY 2016 34 4%

FY 2017 36 6%

FY 2018 38 6%



30 3132

3334

36

38

2%

3%

4% 4%

6%

6%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0

5

10

15

20

25

30

35

40

45

FY 2012FY 2013FY 2014FY 2015FY 2016FY 2017FY 2018



195207

219234

251270

291

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018


149


Semiconductor & electronics segment is expected to drive the growth of machine tool segment

in Vietnam

There would be a significant demand for machine tools from the automotive and auto

components segment as well

Opportunities for Indian manufacturers in Vietnam

150

Auto component sector is on the rise in near future and the demand for the Metal

cutting machine is pretty good in this segment

The demand for turning center is very high in Vietnam and Indian Machine tool

Manufacturer‟s can concentrate on this market

End user industries in Vietnam is ready to accept Indian Brands

In order to enter the Vietnam market, Indian manufacturers need to appoint

representative in the major location of the country.


Vietnam market are

•Competitive price compared with the Chinese and Taiwanese brands

• Excellent after sales service support

• Tie up with the local engineering companies

Strategies for Indian manufacturers to enter in the Vietnam market

151

Appoint local agents and distributors in the Major cities like Ho Chi Minh City, Hanoi etc.

Tie up with local Financial institutes to provide Finance to the end-users as the market is very much price sensitive

Participate in the various exhibition like MTA Vietnam, METALEX etc

Exhibition related to Machine tool in Vietnam

152

Major Associations and bodies

Vietnam Machine Tool Association

Vietnam‟s International Exhibition on Machine

Tool % Metal working Solution for Production

upgrade

International Machine Tools and Precision Engineering

Event

INDONESIA

Overview - Indonesia

154

Country Overview

Population 251,160,124 (2013)

Annual population

growth rate0.97%

GDP USD 866.7 Bn


Indonesia has continuously displayed significant economic growth; the gross national income per capita has

steadily risen from USD 2,200 in the year 2000 to USD 3,563 in 2012

Indonesia has formulated a long-term development plan which spans from 2005 to 2025. It is segmented

into 5-year medium-term plans, each with different development priorities.

The current medium-term development plan covering 2009-2014 is the second phase and focuses on:

-- promoting quality of human resources

-- development of science and technology

-- strengthening economic competitiveness

The investment climate, though still positive, may also be impeded regulatory uncertainties, shortcomings in I

infrastructure provision, and adjustments in minimum wages


155

Currency Indonesian Rupiah (IDR)


GDP by sectorAgriculture (14.4%), Industry (47%),

Services (38.6%)

Exports USD 187.3 Billion (2012)

Main export

partners

Japan (15.9%), China (11.4%),

Singapore (9%), South Korea (7.9%),

US (7.8%), India (6.6%), Malaysia

(5.9%)

Export GoodsOil and Gas, Electrical Appliances,

Plywood, Textiles, Rubber

Imports USD 178.7 Billion

Main import

partners

China (15.3%), Singapore (13.6%),

Japan (11.9%), Malaysia (6.4%), South

Korea (6.2%), US (6.1%), Thailand

(6%)

Import goodsMachinery and Equipment, Chemicals,

Fuels, Foodstuffs

Foreign

reservesUSD 112.8 Billion

The government of Indonesia targets a 6% growth rate,

while the country's central bank (Bank of Indonesia)

expects GDP growth in the range of 5.8 to 6.2%

The forecasts are still rather positive given the global

uncertain and volatile economic context in recent years

4.2

3.6

4.5

4.8

5

5.7

5.5

6.3

6

4.6

6.2

6.5

6.2

5.3

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

GDP growth %

GDP growth %

Source : World Bank

THE INDONESIAN AUTOMOTIVE

INDUSTRY

Overview

157

The automotive industry in Indonesia is growing rapidly ; The sales volume of new vehicles in 2012 for cars crossed 1.1

million mark whereas motorcycles reached more than 7 million units sold

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Cars 0.37327 0.32209 0.2388 0.33496 2.57316 0.06228 0.02008 0.0157 0.05923 0.02367 0.04081 0.03231 0.04869

Jeeps 4x2 0.03087 0.01931 0.01011 0.00894 0.00145 3.26334 2.03676 3.02334 4.15997 3.46245 4.77252 5.30762 6.93421

Jeeps 4x4 0 0 0 0 0 0.00028 0.00637 0.05304 0.09503 0.0356 0.15191 0.2787 0.45211

Buses 0.29108 0.40458 0.45769 0.45629 0.01231 0.02429 0.01254 0.01676 0.02956 0.02328 0.04106 0.04142 0.05299

Trucks 2.232 2.0422 2.25899 2.24933 1.63407 1.65691 0.88433 1.00754 1.66249 1.10316 2.01878 2.71943 3.16757

0

2

4

6

8

10

12

Pro

du

cti

on

Qu

an

tity

in

La

kh

s

2.92

Lakhs

2.79

Lakhs2.97

Lakhs

3.05

Lakhs

4.22

Lakhs

5.00

Lakhs2.96

Lakhs

4.12

Lakhs

6.01

Lakhs 4.65

Lakhs

7.03

Lakhs

8.38

Lakhs

10.66

Lakhs

0.981.65

2.322.81

3.90

5.114.46 4.72

6.265.88

7.378.01

7.08

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Pro

du

cti

on

Qu

an

tity

in

Mil

lio

n

Number of cars domestically assembled in Indonesia

Number of motor cycles domestically assembled in Indonesia

Source : Association of Indonesian Automotive Industries

Continue…

158

Overview - Cars

Indonesia is a major production base for international car makers from around the world including

some of the worldwide leaders like Honda, Toyota and Daihatsu

It was estimated that in 2012, exports of new automobiles reached nearly 2,00,000 with expected

export volume to reach more than 30% of total production by 2017

Most of the 4x2 family vehicles and pick-up trucks are assembled in Indonesia, but sedans and

other luxury vehicles are still being imported either CKD (completely knocked-down) or CBU

(completely built-up)

Overview - Motorcycles

Motorcycle sales saw quite a significant drop in sales from 2011 to 2012. This was due in large

part to the new regulation set by the central bank for minimum down-payment requirements for the

purchase of new vehicles

The Indonesian motorcycle market has seen a shift in demand since 2010, when the motorcycle

type dominated the marketplace with more than 60% of these types of motorcycles being sold on

the market that year

Scooters lead the motorcycle market in Indonesia. Customers prefer the „scooter‟ as it is easy to

handle and they possess an automatic transmission

Another factor for the increased popularity of the „scooter‟ includes the increased cost of fuel in

Indonesia. Consumers perceive that the scooter is a more fuel-efficient vehicle

Major vehicles manufactured and sold in Indonesia

159

Brand Number of units sold Market Share (%)

Toyota 333991 36.18

Daihatsu 135546 14.68

Mitsubishi 124446 13.48

Suzuki 103357 11.21

Nissan 56667 6.13

Honda 55550 6.01

Hino 28898 3.13

Isuzu 28359 3.07

Kia 10783 1.16

Mazda 10073 1.09

Cars & Pick-up trucks

Motorcycles

Brand Number of units sold Market Share (%)

Honda 4092693 57.31

Yamaha 2433354 34.07

Suzuki 465630 6.52

Kawasaki 131657 1.84

TVS 18252 0.26

Major brands of vehicles sold in Indonesia

Brand Number of units sold

Astra Daihatsu Motor 330000

Suzuki Indomobil 140000

Toyota Motor Mfg 120000

Mitsubishi 120000

Honda Prospect Motor 72000

Isuzu Astra Motor 51000

General Motors Indonesia 40000

Nissan Motors Indonesia 35000

Hyundai Indonesia 27000

Cars & Pick-up trucks

Motorcycles

Brand Number of units sold

Honda 4800000

Yamaha 3700000

Suzuki 1000000

Kawasaki 100000

TVS 300000

Major brands of vehicles manufactured in Indonesia

Source : Association of Indonesian Automotive Industries

THE INDONESIAN AUTO COMPONENTS

INDUSTRY

Overview

161

As the automotive industry in Indonesia continues to

grow, there will be a direct impact on other supporting

industries in the country including the automotive

components industry

By the end of 2012 it was estimated that the automotive

components industry market totaled a combined

USD 8.2 billion USD or IDR 78 trillion

Major sub-components for the automotive component

industry include:

Chassis and body assembly

Engine block and transmission assembly

Fast moving spare parts which includes brakes and

clutch systems, batteries, filters

Automotive components industry is estimated to grow

despite there being some potential barriers such as:

Price hikes in electricity

Government to cut/reduce fuel subsidy

Minimum wage increases

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2010 2011 2012

Sales of Automotive Components

(In USD Billion)

Source : Indonesian Automotive Parts and Components Industries Association

Automotive components industry clusters in Indonesia

162

Province Banten Jakarta West Java Central Java East Java

Foreign Companies 16 20 45 0 5

Domestic Companies 9 23 16 2 8

Total 25 43 61 2 13

The major automotive component manufacturers are located in Banten, Jakarta and West Java provinces; however

there are a few small manufacturers clustered in Central and East Java provinces

Auto component manufacturers in Indonesia

163

Major Drivers and Retarders

164

Drivers Retarders

Economic improvements in Indonesia is allowing more

and more people the ability for vehicle ownership

People are looking to invest in their own personal

vehicle due to the poor public transportation systems

throughout Indonesia

According to the Ministry of Finance, the MP3EI

(master plan of acceleration and expansion of

Indonesia‟s economic development) will reach USD 45

Billion in 2013. This is allowing for major economic

development throughout the entire country with a

younger workforce earning larger salaries, allowing for

the investment in automobiles

In 2015, the ASEAN economic community will expand its

automotive market beyond domestic boundaries for the

first time

As Indonesia‟s government continues to reduce fuel-

subsidy in the state budget, there will continue to be an

increase in subsidised fuel prices

In 2012, Central Bank made a decision to set minimum

down-payments for vehicles purchased at 30%

The growth for better roadway systems in Indonesia‟s

major cities has been suspended due in large part to

worsening traffic conditions

For those working in the genuine automotive parts

market sector and the after-market automotive parts

sector, there has been a lot of pressure placed on them

by counterfeit automotive products coming in from

overseas manufacturers

TOTAL MARKET FOR MACHINE TOOL

IN INDONESIA

Total Market size of Machine tool in Indonesia

Type of Machine


FY 2012 FY 2013





EDM‟s 14 8

Total 227 215



Laser 15 11

Press Brakes 39 25


Total 275 237

166

Note : Metal Forming and Metal Cutting tool machines include only the products covered under scope of this study

ANALYSIS OF METAL CUTTING MACHINE

MARKET IN INDONESIA


MARKET IN INDONESIA

Market analysis for import of Machining Center - Country wise

169

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 82.7 66.8 71% 57%

Taiwan 16.0 27.1 14% 23%

Rep. of Korea 5.9 9.7 5% 8%

Singapore 4.1 4.9 3% 4%


Thailand 2.1 2.0 2% 2%

Others 4.3 6.5 3% 5%

Total 117 118


50%

30%

20%

Automobile Automotive Components

General Engineering

Source : Indonesian Ministry Of Trade

170

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 117

FY 2014 123 5%

FY 2015 130 6%

FY 2016 139 7%

FY 2017 149 7%

FY 2018 163 9%



117123

130139

149163

5%

6%

7% 7%

9%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

0

20

40

60

80

100

120

140

160

180

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF TURNING CENTER

MARKET IN INDONESIA


172

Country

Market Size


2013 2012 2013 2012

China 1.03 1.15 49.2% 22.6%

Taiwan 0.76 1.69 36.4% 33.3%

Japan 0.15 0.10 7.1% 2.0%

Korea, Republic

Of0.11 0.11 5.4% 2.2%

Thailand 0.02 0.01 0.8% 0.2%

Singapore 0.01 0.02 0.7% 0.4%

Malaysia 0.01 0.4% -

Others 1.99 39.3%

Total 2 5


55%30%

10%

2%3%


General Engineering Aerospace

Others


Market analysis for import of Multi Spindle Lathe

173

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

China 4.8 8.1 35% 39%

Taiwan 4.5 4.4 33% 21%

Japan 3.0 5.2 22% 25%

Singapore 0.5 1.2 3% 6%

Germany 0.2 0.1 1% 1%

Austria 0.1 1% -

Others 0.5 1.6 5% 8%

Total 13 21


45%

35%

15%

4%1%


General Engineering Aerospace

Others


174

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 16

FY 2014 16 3%

FY 2015 17 4%

FY 2016 18 5%

FY 2017 19 5%

FY 2018 20 7%



1616

1718

19

20

3%

4%

5% 5%

7%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0

5

10

15

20

25

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MARKET IN INDONESIA

Market analysis for import of Grinding Machines

176

Country

Market Size (in USD Mn )Market Share based

on USD Mn

2013 2012 2013 2012

Japan 59.3 51.7 80% 73%

Taiwan 4.2 4.1 6% 6%

Singapore 3.4 3.6 5% 5%

China 2.4 2.9 3% 4%

Germany 2.1 3.1 3% 4%

Australia 0.8 0.7 1% 1%

Others 2.1 4.8 2% 7%

Total 74 71


45%

30%

15%

10%




177

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 74

FY 2014 78 6%

FY 2015 84 7%

FY 2016 91 8%

FY 2017 98 8%

FY 2018 107 9%



7478

8491

98107

6%

7%

8% 8%

9%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

0

20

40

60

80

100

120

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MACHINES MARKET IN INDONESIA


179

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 2.5 2.6 32% 19%

Thailand 1.9 4.4 23% 33%

Taiwan 1.5 1.6 18% 12%

Singapore 0.8 2.2 10% 16%

China 0.8 1.8 10% 14%

Republic Of

Korea0.5 0.7 6% 5%

Others 0.1 0.1 1% 1%

Total 8 14


40%

30%

20%

10%




180

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 8

FY 2014 8 3%

FY 2015 9 4%

FY 2016 9 4%

FY 2017 9 5%

FY 2018 10 6%



8 8 9 99

10

3%

4% 4%

5%

6%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0

2

4

6

8

10

12

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MACHINE MARKET IN INDONESIA

ANALYSIS OF LASER CUTTING

MACHINE MARKET IN INDONESIA


183

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Germany 3.1 6.4 27% 43%

China 2.1 1.6 19% 11%

Japan 1.7 1.4 15% 9%

Republic of

Korea 0.8 0.1 7% 1%

Belgium 0.8 0.3 7% 2%

Italy 0.7 0.1 6% 1%

Others 2.0 5.0 19% 33%

Total 11 15


35%

30%

25%

10%

Electrical and Electroncis Automobile

Automotive components Others


184

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 11

FY 2014 12 5%

FY 2015 12 6%

FY 2016 13 7%

FY 2017 14 7%

FY 2018 15 9%



11 1212

1314

15

5%

6%

7% 7%

9%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

0

2

4

6

8

10

12

14

16

18

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MARKET IN INDONESIA


186

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 16.0 7.7 56% 31%

China 4.1 5.6 14% 22%

Italy 2.9 1.1 10% 5%

Taiwan 1.8 3.8 6% 15%

Republic Of Korea

1.0 2.4 4% 10%

Malaysia 0.7 1.0 2% 4%

Others 2.2 3.2 8% 13%

Total 29 25


40%

30%

20%

10%




187

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 29

FY 2014 31 8%

FY 2015 34 9%

FY 2016 38 10%

FY 2017 41 10%

FY 2018 46 11%



2931

3438

41

46

8%

9%

10% 10%

11%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

5

10

15

20

25

30

35

40

45

50

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MARKET IN INDONESIA


189

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 8.9 23.3 35% 59%

China 6.3 7.3 25% 19%

Republic Of

Korea5.1 0.5 20% 1%

Singapore 0.9 0.8 3% 2%


Spain 0.8 2.2 3% 6%

Others 2.4 5.0 11% 12%

Total 25 39


35%

25%

25%

15%

Automotive components Automobile



190

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 25

FY 2014 26 4%

FY 2015 27 5%

FY 2016 29 6%

FY 2017 31 6%

FY 2018 33 8%



25 2627

2931

334%

5%

6% 6%

8%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0

5

10

15

20

25

30

35

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF FORGING MACHINES

MARKET IN INDONESIA


192

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2013 2012 2013 2012

Japan 114 133 66% 68%

Republic Of

Korea10 10 6% 5%


Malaysia 7 14 4% 7%

Taiwan 7 12 4% 6%

Singapore 7 9 4% 4%

Others 18 15 10% 9%

Total 172 196


45%

40%

15%

Automotive components Automobile Others


193

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 172

FY 2014 184 7%

FY 2015 199 8%

FY 2016 217 9%

FY 2017 236 9%

FY 2018 260 10%



172184

199217

236

260

7%

8%

9% 9%

10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

50

100

150

200

250

300

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




194


Automotive and auto components segment is expected to drive the growth of machine tool

segment in Indonesia

There would be a significant demand for machine tools from the aerospace and electronics

segments as well

502532

564604

649701

757

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

New Fiscal Policies to Curb Imports and Support Exports

195

The income tax on 502 types of durable goods (such as motorcycles, smartphones,

furniture and mobile phones) are raised from 2.5% to 7.5% for all importers

Previously, importers with an importer identification number (API, Angka Pengenal

Importir) provided by the Trade Ministry paid income tax of 2.5%, while companies

without API paid 7.5 percent; hence, the new policy implies an end of the tax break of

API-holders

Also, government has plans to ease import facilities for export purposes making it easier

for export-oriented manufacturing industries to import raw materials as well as capital

goods

The government will remove value-added tax and the tax on luxury goods for imported

goods. This aims to raise more revenue from the export sector by making the sector

more competitive on the global market

Opportunities for Indian manufacturers in Indonesia

196

The rapid expansion of Indonesian automotive industry is expected to result in an

increase of machine tools consumption in the country

Indian machine tool manufacturers may focus the automotive and auto components

cluster in Indonesia

End user industries in Indonesia opined that they are willing to purchase Indian

machines; unlike other countries, machines used in Indonesia are not technologically

advanced

In order to enter the Indonesian market, Indian manufacturers may tie up with small

engineering support companies which will help in easily addressing to the market

demand

Language barrier is one of the major problems into entering the Indonesian market;

hence, it is always recommended to appoint a local agent for the distribution of

machines

Exhibition related to Machine tool in Indonesia

197

While the series of MTT Expo Indonesia present technologies that will yield

higher product quality and enable higher productivity, the concurrently held

Manufacturing Summit will deliberate on avenues and measures to develop

skilled manpower, lower production costs, meet market demands, explore

alternatives and study feasibilities

The Machine Tool Indonesia is a trade fair for tools and metal processing. For

example, filter systems, bending machines, laboratory equipment, IT systems

and laser cutters. In addition, a host of other products from the laboratory and

security

PHILIPPINES

Overview of the Philippines

According to 2012 International Monetary Fund statistics,

economy of the Philippines is the 40th largest in the world

and is also one of the emerging markets in the world

The Philippines is considered as a newly industrialized

Country, which has been transitioning from being one

based on agriculture to one based more on services and

manufacturing

Much of the industrial sector is based on processing and

assembly operations in the manufacturing of electronics

and other high-tech components, usually from foreign

multinational corporations.

Primary exports include semiconductors and electronic

products, transport equipment, garments, copper products,

petroleum products, coconut oil, and fruits

Major trading partners include the United States, Japan,

China, Singapore, South Korea, the Netherlands, Hong

Kong, Germany, Taiwan, and Thailand

It is currently one of Asia's fastest growing economies.

However, major problems remain, mainly having to do with

alleviating the wide income and growth disparities between

the Country's different regions and socioeconomic classes,

reducing corruption, and investing in the infrastructure

necessary to ensure future growth

199

Country Map

The Philippines, consisting of some 7,107 islands, is

located in the western Pacific Ocean. Taiwan lies to its

north, and Vietnam to the west.

It is the 73rd-largest Country in the world by surface

area, but with a population of some 98 million

people, making it the seventh most populous Country in

Asia, and the 12th most populous in the world.

Its capital, Manila, is the second largest city in the Country

after Quezon City (the former capital) - and home to most of

the Country's educational and political institutions.


200

Currency PHILIPPINES peso (PHP)


Trade organizationsAPEC, ASEAN, WTO, EAS, Asian

Development Bank, ASEAN

GDP Rs 257 Billion nominal(2012)


Services (54.4%)

Exports Rs 52 Billion (2012)

Main export

partners

Japan (19.0%), United States (14.2%),

China (11.8%), Hong Kong (9.2% ), South

Korea (5.5% ), Thailand (4.7%)

Export Goods

Semiconductors and electronic products,

Transport equipment, Garments, copper

products, petroleum products, coconut oil,

fruits

Imports Rs 57.24 Billion

Main import

partners

United States (11.5%) China (10.8%),

Japan (10.4%), South Korea (7.3%)

Singapore (7.1%), Thailand (5.6%), Saudi

Arabia (5.6%), Indonesia (4.4%), Malaysia

(4.0%)

Import goods

Electronic products, mineral fuels,

machinery and transport equipment, iron

and steel, textile fabrics, grains, chemicals,

plastic

Foreign reserves Rs 85.761 Billion

4.4

2.9

3.6

5.0

6.7

4.85.2

7.1

4.2

1.1

7.6

3.6

6.8 7

GDP growth Trend

GDP growth %

The domestic economy grew by 7.0 percent in 2013.

Growth was driven by the Services sector with the robust

performance of Real Estate, Renting & Business

Activities, Trade and Financial Intermediation sustained by

the accelerated growth of the Industry sector.

Source : World Bank

Key Figures

201

INDUSTRY 2012-13 2010-11 2011-12

1. AGRI., HUNTING, FORESTRY AND FISHING 0.3 2.6 2.8

a. Agriculture and forestry 0.1 4.4 3.6

b. Fishing 1.1 -4.3 -0.4

2. INDUSTRY SECTOR 8.2 1.8 6.8

a. Mining & Quarrying -0.8 7.0 2.2

b. Manufacturing 9.7 4.7 5.4

c. Construction 4.7 -9.8 15.7

d. Electricity, Gas and Water Supply 6.7 0.6 5.1

3. SERVICE SECTOR 7.5 4.9 7.6

a. Transport, Storage & Communication 6.6 4.3 8.1

b. Trade and Repair of Motor Vehicles,

Motorcycles, Personal and Household Goods5.8 3.3 7.5

c. Financial Intermediation 12.1 5.2 8.2

d. R. Estate, Renting & Business Activities 12.2 8.4 7.5

e. Public Administration & Defense; Compulsory

Social Security2.6 1.9 6.1

f. Other Services 5.4 5.6 7.7

GROSS DOMESTIC PRODUCT 7.0 3.6 6.8

GROSS NATIONAL INCOME 7.8 2.8 6.5

Growth Rates of Gross National Income and Gross Domestic Product

Source: National Statistical Coordination Board

Key Sectors

Shipbuilding and repair

The Philippines is a major player in the global shipbuilding industry with shipyards in Subic, Cebu, General Santos City

and Batangas. Subic-made cargo vessels are now exported to countries where shipping operators are based. South

Korea's Hanjin started production in Subic in 2007 of the 20 ships ordered by German and Greek shipping operators.

The Country‟s shipyards are now building ships like bulk carriers, container ships and big passenger ferries. General

Santos' shipyard is mainly for ship repair and maintenance. Being surrounded by waters, the Country has abundant

natural deep-sea ports ideal for development as production, construction and repair sites.

Automotive

Automotive sales in the Philippines moved up from 165,056 units in 2011 to over 180,000 in 2012. The ABS used in

Mercedes-Benz, BMW, and Volvo cars are made in the Philippines. Ford, Toyota, Mitsubishi, Nissan and Honda are the

most prominent automakers manufacturing cars in the Country. Kia and Suzuki produce small cars in the Country

whereas Isuzu also produces SUVs in the Country. Honda and Suzuki produce motorcycles in the Country.

Aerospace

Aerospace products in the Philippines are mainly for the export market and include manufacturing parts for aircraft built

by both Boeing and Airbus. Moog is the biggest aerospace manufacturer with base in Baguio in the Cordillera region.

The company produces aircraft actuators in their manufacturing facility.

Electronics

A Texas Instruments plant in Baguio has been operating for 20 years and is the largest producer of DSP chips in the

world. Texas Instruments' Baguio plant produces all the chips used in Nokia cell phones and 80% of chips used in

Ericsson cell phones in the world. Until 2005, Toshiba laptops were produced in Santa Rosa, Laguna. Presently the

PHILIPPINES plant's focus is in the production of hard disk drives. Printer manufacturer Lexmark has a factory in

Mactan in the Cebu region.

202

THE PHILIPPINES SEMICONDUCTOR

AND ELECTRONICS INDUSTRY

Overview

The Philippines electronics industry continues to represent a significant and majority share of the total

Philippines exports throughout the years

It peaked at US$31 billion worth of exports in the year 2010, but in the succeeding years, it seemed that the

Philippines electronics industry has been gradually losing its dominance as the biggest exporter, ending

2013 with only US$23 billion, or 43% of the total Philippines exports.

The Philippines electronics industry for decades has been strong in manufacturing test and assembly

It is time for the industry to add higher value activities and develop its R&D capabilities

The Top Chip Makers: 7 out of the world‟s top 20 chip makers are operating in the Philippines

Texas Instruments

Philips

Fairchild

Analog Devices

Sanyo

On Semi

Rohm

World‟s Top electronics firms: Four of the largest HDD producers are in the Philippines :

Hitachi

Toshiba

Fujitsu

NEC

CEBU Mitsumi: Manufactures computer peripherals and components such as CD R, CD R W, Optical pick

up

AMKOR : Manufactures IC packaging with 400 formats

EPSON: one of the top 3 terminal printer production base of global Epson group

Lexmark: Produces 40 million print heads per year

Continental Temic : Produces automotive electronics parts (Sensors, auto accessories etc)

204

Presence of companies:

Global players like Texas

Instruments, HGST,

Toshiba, Samsung,

Analog Devices, Amkor,

Cypress,Moog, Fairchild,

Maxim, Continental

Temic,

Lexmark, ROHM,

STMicroelectronics, IBM

and Filipino companies

such as IMI, Ionics,

Fastech, First Philec, etc.

Continue…

205

17

20

25

29

35

38

32 35

36

3941

47

50

49

38

51

1011

12

11

11

11

10

10

12

12

13

17

1920

16

20

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Philippine Export with Electronic( in US $) Philippine Export without Electronic ( In US $)

Source : Electronics Industries Association of the Philippines

A growing base of suppliers for Hard Disk Drives (HDD)

206

Philippines is supplying the world with 2.5 Million HDD per month

Source : SEIPI

Test and Packaging Design

207

Philippines is capturing 10% of the SMS world supply

Philippines is strong in assembly, test and packaging design for semi conductor

manufacturing services

Presence of global players

208

Geographical clusters of electronics companies

209

Japan, 30%

Philippines,28%

Malaysia, 2%

Singapore, 2%

Taiwan, 4%

Europe, 7%

USA, 9%

Korea, 10%

Others, 8%

Total Number of companies : 936

Break up by Country Break up by Region

Break up by Nationality

Foreign, 72%

Filipino, 28%

THE PHILIPPINES AUTOMOBILE

INDUSTRY

Overview

Automotive Industry has played an imperative and indispensable role in the development of the

Philippines as it has grown substantially and strongly over the past few years

Philippines is the home to many major car manufacturers, such as Mercedes-Benz, BMW, Volvo, Ford,

Toyota, Mitsubishi and Nissan, with Toyota the biggest seller of vehicles in the country

According to the Motor Vehicle Parts Manufacturers Association of the Philippines, Inc. (MVPMAP),

the automotive manufacturing industry belongs to the industrial sector which accounts for 31.5% of the

total GDP. With an output value of Peso 368 billion, the auto industry contributes about 12% in the

Industrial sector and 3.8% of the total GDP

The Philippines automotive industry grew by 17.89% to 102,913 units in the first seven months of 2013

from 87,374 units during the same period in 2012

Passenger car sales grew 33,098 units from January to July 2013, up by 26.1% over the previous

year's 26,244 units, Commercial vehicle sales also increased by 14.2% to 69, 815 units from 61,130

units while Asian utility vehicles were also up by 2% to 23,670 units from 23,215 units

The automotive industry roadmap foresees a 300,000 unit domestic market by 2016 or additional sales

of 30,000 units annually in the next three years from 210,000 unit base year in 2013

211

Source : The Automobile Association Philippines

Overview of Indian automobile industry

212

Category

Automobile Sales Trends

(Number of Vehicles)

FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13

Passenger Vehicles 44425 46228 58691 44862 48,328

Commercial Vehicles 80024 86216 109799 96754 108321

AUV - - 36903 35851 40231

LCV - - 71789 59825 64261

Trucks and Buses - - 1107 1079 2331

Total 1,24,449 1,32,444 1,68,490 1,41,616 1,56,649

124449132444

168490

141616156649

2008-09 2009-10 2010-11 2011-12 2012-13

Total sales

Source : The Automobile Association Philippines

Major Automobile Players in Philippines

213

Auto Components industry overview

The Philippines automotive industry has been greatly characterized by parts and components

manufacturing as a result of its participation in production sharing

Parts and components manufacturing accounts for more than 80 percent, while motor vehicle

assembly accounts for about 17 percent of the local automotive industry

The components sector consists of: metalworking, rubber, seats and trims, plastics, electrical, and

others

The components sector manufactures the following parts:

* Suspension: tires steel rims, aluminum wheels, leaf and coil springs

* Interior: carpets, seats

* Electrical system: wiring harnesses, batteries, lamps, relays

* Pressed components: mufflers, radiators, seat frames, sea adjusters, oil and air filters, pedals

* Rubber and plastic components: fan belts, rubber hoses, small plastic parts

* Mechanical parts: transmission

* Cast and forged components: gear blanks, brake disks, brake drums

The development of the PHILIPPINES automotive parts and components sector is critical to the

automotive assembly industry. The availability of competitive parts and components that are locally

manufactured can significantly contribute to boost the competitiveness of the assembly sector

214

Geographical clusters of Major Manufacturers

215

Name of the Company Location

Toyota Motors Santa Rosa(Laguna)

Mitsubishi Motors Calamba( Laguna)

Isuzu Binan (Laguna)

Honda Motors Batangas

Ford Motors Santa Rosa( Laguna)

Universal Motors Calamba( Laguna)

Kia Motors Manila

Suzuki Canlubang, Laguna

THE PHILIPPINES SHIP BUILDING AND

REPAIR INDUSTRY

Overview

The Philippines is recognized as the fourth largest shipbuilder in the world .The Country hosts some of

the world‟s leading shipbuilders, including: Japan‟s Tsuneishi, which has its second-largest facility in

Cebu, South Korea‟s Hanjin in Subic, and Singapore‟s Keppel in Batangas. These companies build

ships such as bulk carriers, container ships and passenger ferries.

After being recognized as the fourth largest shipbuilder in the world, shipyards established in the

Philippines are now building more ships of larger tonnage capacities like bulk carriers, container ships

and passenger ferries. The construction of 180,000-DWT commercial ship by Hanjin Heavy Industries

Corporation, a South Korean shipbuilding giant, shows that the Philippines can really build world-class

ocean-going vessels.

PHILIPPINES Advantage

The country has adequate supply of skilled manpower for shipbuilding and ship repair. Being the 2nd

largest archipelago in the world, making it suitable to build a shipbuilding base, Philippines‟ geographic

structure and location became one of the primary factors for it to be the shipbuilding and ship repair

hub in Asia. The 54,000-hectare business hub in Port Irene at the Cagayan Economic Zone Authority

(CEZA) is being primed to be the country‟s next world-class shipyard.

Importation of major raw materials has been liberalized since 1989 that allows companies to get good

quality inputs at favorable prices considering that raw material costs and their availability affect the

competitiveness of the shipbuilding industry

217

Major Players

Filipino Shipbuilders

Two notable Filipino-owned shipbuilding companies are Herma Shipyard, Inc., which has recently

gone into double hull petroleum tanker shipbuilding, and Colorado Shipyard Corporation, which can

build medium to large cargo ships.

Tsuneishi

The Tsuneishi Cebu shipyard, operated by Japan‟s Tsuneishi Holdings Corp., in partnership with

Cebu‟s Aboitiz Group had produced about 77 ships by the end of 2007. Starting in 1997 with the

23,407-DWT M/V sea Amelita, a log/bulk carrier named after then-First Lady Amelita Ramos, the

company proceeded to make history in the local shipbuilding industry.

Hanjin

Hanjin, which started building its shipyard on a 200-hectare in Subic in early 2006, has increased the

momentum of big ship production recently. The huge capacity of Hanjin‟s dry dock in Subic, where four

vessels can be built at a time, resulted in faster production. It is interested in pursuing a USD 2 billion

expansion project in Phividec Industrial Estate in Misamis Oriental, which is bigger than Subic

because it is going to occupy 450 hectares.

Keppel

Keppel started operating its shipyard in the Philippines in early 1994 with a capacity of 28 vessels per

year. It expanded its operation by fabricating tugboats and oil rig hull. It now operates two shipyards,

namely Subic (350,000 DWT) and Batangas (50,000 DWT). It offers a complete solution in offshore rig

constructions, shipbuilding, ship repair and conversion with a full range of dry-docks in its three

shipyards strategically located in the PH.

218

Major shipyard companies and their locations

219

Name of the company Location

Austal Philippines Pty. Ltd. Balamban, Cebu

Colorado Shipyard Corporation Consolacion, Cebu

Dansyco Marine Works and Navotas City, Metro Manila

Gensan Shipyard & Machine Works,

Inc. General Santos City, Sarangani

Hanjin Heavy Industries Zambales

Herma Shipyard Inc. Mariveles, Bataan

Keppel Philippines Marine Bauan, Batangas

Keppel Philippines Marine Subic

ShipyardSubic, Zambales

Nagasaka Shipyard Incorporated Consolacion, Cebu

Nautillus Shipyard Repair Inc. Navotas, Metro Manila

Navotas Shipyard and Fishing Corp. Navotas, Metro Manila

Ocean Engineering Ship Design and Balamban, Cebu

Tsuneishi Heavy Industries Balamban, Cebu

Cebu

Navotas

Zambales

Sarangani


IN PHILLIPINES

Total Market size of Machine tools in Philippines

221


FY 2011 FY 2012 FY 2013


Turning Centers 2.67 6.95 11.65

Machining Centers 1.48 1.78 2.32

Grinding Machines 0.39 1.16 4.81

EDMs 0.25 0.24 0.26

Total 4.80 10.13 19.04


Presses(Mechanical/Hydraulic/Servo) 0.80 1.41 2.55

Laser 0.45 0.70 0.59

Water jet & Plasma 0.33 0.02 0.03

Press Brakes 1.52 1.63 3.40

Cold & Hot Forging - 0.01 0.02

Total 3.10 3.77 6.59


MACHINES


MARKET IN PHILIPPINES

Market analysis for import of vertical machining centers

224

CountryMarket Size (in USD Mn)

Market Share based

on USD Mn

2013 2012 2011 2013 2012 2011

China 0.02 0.03 - 1% 2% -

Japan 0.8 0.62 0.5 35% 35% 34%

Korea 0.3 0.5 0.4 13% 28% 27%

Singapore 0.1 - 0.17 4% - 11%

Taiwan 0.98 0.5 0.42 42% 29% 28%

United

states0.12 0.1 - 5% 6% -

Total 2.32 1.78 1.48 - - -

35%

24%

15%

12%

14%


Aerospace Semi Conductor & Electronics

Automotive and Component General Machine shop

others

Other segments include Job Shop, Electric cigarettes, jig

and fixtures and heavy engineering etc

Approximately 70% machines are 3 axis whereas 30% of the machines imported were 4-5 axis machines

Source : Philippine National Statistical Coordination Board

225

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 2

FY 2014 2 5%

FY 2015 2 6%

FY 2016 2 7%

FY 2017 3 7%

FY 2018 3 9%



22

22

33

5%

6%

7% 7%

9%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

0

0.5

1

1.5

2

2.5

3

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF TURNING CENTER


Market analysis for import of turning centers for FY 2013

227

Country

Name

Market Size (in USD Mn)Market Share based

on USD Mn

2013 2012 2011

2013 2012 2011

NEW USED NEW USED NEW USED

Korea 3.47 5.9 0.22 - 0.23 - 80% 3% 9%

Japan 0.03 - 1.44 1.47 0.95 0.17 0% 42% 42%

Germany 0.07 - 1.92 - - - - -

Taiwan 0.03 - 0.5 0.01 0.97 0.02 - 7% 37%

China 0.4 - 0.58 - 0.17 - - - -

Turkey 0.72 - - - - - - -

United

States 0.54 0.01 0.01 0.01 0.01 5% 1%

Singapore 0.01 - 0.38 0.02 0.1 - - 6% 4%

Myanmar 0.38 - 0.01 - - - 3% - -

Others 0.07 0.04 0.1 0.1 0.02 0.02 1% 3% 1%

Total 5.7 5.95 5.13 1.82 2.45 0.22 - - -

45%

27%

16%

4%

8%


Auto Component & OEM Aerospace

Heavy Engineering Electronics & Semiconductor

Electronic cigarattes


228

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 12

FY 2014 13 6%

FY 2015 14 7%

FY 2016 15 8%

FY 2017 16 8%

FY 2018 17 10%



1213

1415

16

17

6%

7%

8% 8%

10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

2

4

6

8

10

12

14

16

18

20

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



Market analysis for import of grinding machines

230

Country

Name


on USD Mn

2013 2012 2011

2013 2012 2011NEW USED NEW USED NEW USED

Japan 3.92 0.44 0.55 0.08 0.03 90% 55% 10%

Germany 0.03 - 0.29 - 0.08 - 1% 25% 19%

Singapore 0.21 - 0.01 - 0.03 - 4% 1% 8%

Taiwan 0.07 - 0.06 0 0.09 - 2% 6% 23%

China 0.04 - 0.04 - 0.06 - 1% 3% 16%

Thailand 0.05 - 0.01 - 0.05 - 1% 1% 12%

United

States- - 0.03 - 0.02 - - 2% 6%

Australia - - - 0.03 - - - 2% -

Malaysia - - 0.02 - - - - 2% -

Korea 0.01 - - - - - - - -

Sweden 0.01 - - - - - - - 1%

Hongkong 0.01 - - - - - - - -

Others 0.01 - 0.02 0.02 - - - -

Total 4.37 0.44 1.05 0.11 0.36 0.04 - - -

42%

12%

32%

8%

6%


Ship Building & Repairs Auto Component

General Engineering Heavy Engineering

Others


231

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 5

FY 2014 5 8%

FY 2015 6 9%

FY 2016 6 10%

FY 2017 7 10%

FY 2018 8 12%



55

66

7

8

8%

9%

10% 10%

12%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0

1

2

3

4

5

6

7

8

9

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MACHINING MARKET IN PHILIPPINES

Market analysis for import of EDMs

233

Country

Name


on USD Mn

2013 2012 2011 2013 2012 2011

China 0.01 0.06 0.03 4.6% 23% 11%

Singapore 0.01 - - 1.9% 2% -

Thailand 0.2 - 0.08 68.4% - 32%

Taiwan 0.08 0.15 0.15 25.1% 63% 57%

South Korea - 0.03 - - 12% -

Total 0.3 0.24 0.26 - - -

61%

33%

6%


Semiconductors General Engineering

Others


234

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 0.26

FY 2014 0.27 4%

FY 2015 0.28 5%

FY 2016 0.30 6%

FY 2017 0.32 6%

FY 2018 0.34 8%



0.26 0.270.28

0.300.32

0.34

4%

5%

6% 6%

8%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MACHINE


MACHINE MARKET IN PHILIPPINES

Market analysis for import of laser cutting machines

237

Country NameMarket Size (in USD Mn)

Market Share based

on USD Mn

2013 2012 2011 2013 2012 2011

China 21.6 11.4 12 60% 27% 44.4%

Hongkong 0.6 0.6 - 1% 2% -

Japan 3 21 - 8% 51% -

Singapore 6 0.6 - 17% 2%

United States 4.2 4.8 1.2 12% 11% 3.4%

United Kingdom - 1.8 5.4 - 4% 20.3%

Taiwan - 1.8 2.4 - 4% 8.2%

Spain - - 5.4 - - 20.1%

Thailand - - 0.6 - - 3.3%

Total 35.4 42 27 - - -

20%

17%

40%

6%

17%


Auto Component Aerospace & Defense

Electronic and Semiconductor General Engineering

others


238

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 0.59

FY 2014 0.60 2%

FY 2015 0.62 3%

FY 2016 0.64 4%

FY 2017 0.67 4%

FY 2018 0.71 6%



0.59 0.600.62

0.640.67

0.71

2%

3%

4% 4%

6%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS PLASMA CUTTING MACHINE


Market analysis for import of plasma cutting machines

240

Country Name


on USD Mn

2013 2012 2011 2013 2012 2011

China 0.03 - 0.01 100% - 2.9%

Denmark - 0.01 - - 74% -

United State - 0.01 - - 26% -

Denmark - - 0.02 - - 4.7%

Japan - - 0.01 - - 2.7%

Singapore - - 0.3 - - 89.7%

Total 0.03 0.02 0.33 - - -

60%

28%

12%


Semiconductor & Electronics General Engineering others


Market analysis for import of hydraulic presses

242

Country Name


on USD Mn

2013 2012 2011 2013 2012 2011

Taiwan 0.2 0.06 0.21 20% 6% 21%

Singapore 0.38 - 0.01 38% 1%

China 0.2 0.13 0.02 20% 13% 2%

Japan 0.14 0.09 - 14% 9% -

Korea 0.06 0.01 - 6% 1% -

Thailand 0.01 - - 1% - -

Italy - 0.01 - - 1% -

Myanmar - 0.01 - - 1% -

Portugal 0.01 - - 1% - -

Hongkong - 0.01 - - 1% -

Total 1.01 0.32 0.25 - - -

35%

17%

29%

12%

7%


Auto Component Electronics & Semiconductor

General Engineeering Heavy Engineering

other

Source : Philippine National Statistical

Coordination Board

ANALYSIS OF PUNCH PRESSES


Market Analysis for import of punch presses

244

Country

Name

Market Size (in USD Mn)

Market Share

based

on USD Mn

2013 2012 2011

2013 2012 2011


Japan 0.57 0.07 - 0.18 0.02 0.01 90% 33% 11%

Taiwan 0.03 - 0.02 - 0.08 - 5% 3% 30%

China 0.03 - 0.3 - 0.16 - 5% 55% 57%

Denmar

k- - - 0.05 - - - 9% -

United

States- - - - 0.01 - - - 2%

Total 0.64 0.07 0.32 0.23 0.26 0.01 - - -

22%

20%

32%

18%

8%

Market Breakup In USD Mn

Auto Component & OEM Aerospace

Heavy Engineering Electronics & Semiconductor

Others


245

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 2.55

FY 2014 2.65 4%

FY 2015 2.78 5%

FY 2016 2.95 6%

FY 2017 3.13 6%

FY 2018 3.38 8%



2.552.65

2.78

2.95

3.133.38

4%

5%

6% 6%

8%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF FORGING MACHINES


Market Analysis for import of forging machines Country wise

247

Country

Name


on USD Mn

2013 2012 2011

2013 2012 2011


China 0.48 - 0.3 - 9.6 - 58% 55% 57%

Japan 0.32 - - 0.18 1.2 0.6 39% 33% 11%

Portugal 0.01 - - - - - 2% - -

Taiwan 0.01 - 0.02 0 4.8 - 1% 3% 29%

Denmark 0 - - 0.05 - - 9% 1%

United state - - - 0.6 - - - 2%

Total 0.83 0.32 0.23 15.6 0.6 - - -

22%

20%

32%

18%

8%

Market Breakup In USD Mn

Auto Component & OEM

Aerospace

Heavy Engineering

Electronics & Semiconductor

Others


248

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 0.020

FY 2014 0.020 2%

FY 2015 0.021 3%

FY 2016 0.022 4%

FY 2017 0.023 4%

FY 2018 0.024 6%



0.020 0.0200.021

0.0220.023

0.024

2%

3%

4% 4%

6%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.000

0.005

0.010

0.015

0.020

0.025

0.030

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



Market Analysis for import of Press Brakes

250

Country Name

Market Size (in USD Mn )

Market Share

based

on USD Mn

2013 2012 20112013 2012 2011


Korea 1.13 0.01 0.75 - 0.84 - 51% 59% 63%

Japan 0.09 0.4 0.01 0.27 0.16 0.005 22% 23% 12%

China 0.32 - 0.1 - 0.26 - 14% 8% 19%

Taiwan 0.17 - 0.03 0.01 0.06 0.005 8% 3% 5%

Germany 0.04 - 0.01 0.02 - 2% 3%

Hongkong 0.04 - - - - - 2% - -

Italy 0.03 - - - - - 1% - -

South Africa - - 0.03 - - - - 2% -

United States 0.01 - - 0.01 - - 1% - -

Singapore - - - - 0.01 - - - 1%

Australia - - 0.01 - - - - 1% -

Others 0.01 - 0.01 - - - - 1% -

Total 1.84 0.42 0.94 0.31 1.33 0.01 - - -

42%

12%

32%

8%

6%




Others


251

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2013 3.4

FY 2014 3.6 6%

FY 2015 3.9 7%

FY 2016 4.2 8%

FY 2017 4.5 8%

FY 2018 4.9 10%



3.43.6

3.9

4.2

4.5

4.9

6%

7%

8% 8%

10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.0

1.0

2.0

3.0

4.0

5.0

6.0

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF SHEARING MACHINE


Market Analysis for import of Shearing Machine-Country wise

253

Country

Name

Market Size (in USD Mn )

Market Share

based

on USD Mn

2013 2012 2011

2013 2012 2011


China 0.27 - 0.18 - 0.11 - 24% 48% 59%

Germany 0.01 - 0.02 - - - 1% 6% -

United

Kingdom- 0.01 0.00 - - - 1% 1% -

Italy 0.01 - - - - - - - -

Japan 0.81 0.01 0.08 0.01 - 71% 22% 6%

Korea 0.01 - - - - - 1% - -

Sweden 0.01 - - - - - 1% - -

Taiwan - - 0.01 - 0.07 - - 2% 35%

Greece - - 0.06 - - - - 16% -

Vietnam - - - 0.02 - - - 5% -

Total 0.32 0.82 0.28 0.10 0.19 - - - -

42%

12%

32%

8%

6%




Others


1415

1617

1820

21

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018


254


Aerospace and Semiconductor segments are expected to drive the growth of machine tool

segment in Philippines

There would be a significant demand for machine tools from the auto and auto components

segments as well

Exhibition related to Machine tool in Philippines

255

Philippine Die & Mould Machineries and Equipment Exhibition.

Over 400 local and foreign exhibitors attend this expo to

showcase their crown jewels in metal and machinery industry

MALAYSIA

Overview - Malaysia

257

Country Overview

Population 29,628,392 (2013)

Annual population

growth rate1.5%

GDP USD 506.7 Bn


Malaysia is an upper middle income economy with a gross national income of USD 8770 per capita

It is a leading exporter of electrical appliances, electronic parts and components, palm oil and

natural gas

In 2010, Malaysia launched the New Economic Model (NEM) which aims for the country to reach

high income status by 2020 while ensuring the growth is also sustainable and inclusive

The NEM envisions economic growth that is primarily driven by the private sector and which

moves the Malaysian economy into higher value added activities in both industry and services


258

Currency Malaysian Ringgit (MYR)


Trade organizationsAPEC, ASEAN, WTO, EAS, Asian

Development Bank, ASEAN


Services (48.3%)

Exports USD 227.7 Billion (2012)

Main export

partners

Singapore (13.6%), China (12.6%), Japan

(11.8%), US (8.7%), Thailand (5.4%),

Hong Kong (4.3%), India (4.2%), Australia

(4.1%)

Export Goods

Semiconductors and electronic equipment,

Palm oil, Petroleum and liquefied natural

gas, Wood & wood products, Rubber,

Textile, Chemicals, Solar panels

Imports USD 186.9 Billion

Main import

partners

China (15.1%), Singapore (13.3%), Japan

(10.3%), US (8.1%), Thailand (6%),

Indonesia (5.1%), South Korea (4.1%)

Import goods

Electronics, Machinery, Petroleum

products, Plastics, Vehicles, Iron & Steel

products, Chemicals

Foreign reserves USD 139.7 Billion

Malaysian Rating Corp Bhd (MARC) expects Malaysia to

record a respectable gross domestic product (GDP) growth

of 5% in 2014 due to numerous challenges ranging from

softer consumer spending and stricter lending measures by

financial institutions

8.7

0.5

5.45.8

6.8

55.6

6.3

4.8

-1.5

7.4

5.15.6

4.7

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

GDP growth trend

GDP growth %

Source : World Bank

Key Figures (In RM Billion)

259

INDUSTRY 2013 2012 2011

1. GROSS DOMESTIC PRODUCT 789.8 751.5 711.5

a. Agriculture, forestry & fishing 56.9 54.9 54.3

b. Mining 66.4 63.4 62.6

c. Manufacturing 195.9 186.7 178.2

d. Construction 29.3 26.5 22.5

e. Services 431.2 410.0 385.2

Plus import duties 10.1 10.0 8.7

2. Gross National Income 749.6 693.1 666.9

a. Private consumption 408.1 380.0 352.9

b. Private investment 135.6 116.9 95.8

c. Public consumption 103.9 99.1 94.2

d. Public investment 90.8 84.9 72.4

e. Exports of goods & services 722.5 714.1 714.8

f. Imports of goods & services 672.0 650.0 621.0


Source: Ministry of Finance and Department of Statistics

Machine & Equipment Industry

260

M&E is one of the sectors that will spur Malaysia as a high technology nation

The targeted M&E are:

Machine Tools

Material Handling equipment

Robotics and factory automation equipment

Packaging machinery

Specialised process machinery

Modules and components of the above

The development of M&E industry emerged mainly to serve the agro based and tin

mining sectors

M&E industry has transformed from the general fabrication and machining works to

assembly of higher end machinery modules and components

Machine Tool industry - Malaysia

261

The machine tool industry in Malaysia has shown a consistent growth over the last years

which is mainly driven by the continuous inflow of both FDIs and domestic investments

in various sectors including semiconductor, electrical and electronics, automotive, oil &

gas, aerospace, medical and food processing

The need of high technology machine tools in these industries is key to their survival

within a global environment and will accordingly continue to grow in the future

Other areas of the total value chain will also continue to give opportunities for profitable

investments

Service and maintenance, repair and overhaul are also in high demand due to high

density of plants and installations in Malaysia

THE MALAYSIAN ELECTRICAL AND

ELECTRONICS INDUSTRY

Overview

263

The Electrical & Electronics (E&E) industry is one of the leading industries, contributing 24.5 per cent to

the manufacturing sector in the Malaysia‟s GDP

Malaysia is a key player in the fast expanding Asia Pacific E&E market, its major export destinations

include Singapore, US, EU, Japan and Taiwan

The E&E industry is targeted under the National Key Economic Areas (NKEA) to gear the nation towards

high-income economy by focusing on high-value and high-growth manufacturing activities

Malaysia‟s exports of E&E products was valued at RM 231.23 Billion, with 49.2 % share of manufactured

goods exports and 32.9 % share of Malaysia‟s total exports

E&E products were also the largest imports amounted to RM175 Billion, representing a share of 37.8%

of manufactured goods imports and 28.8% of Malaysia‟s total imports

Malaysia‟s top import sources for E&E products are China, Singapore, USA, Japan and Taiwan

The E&E industry in Malaysia can be classified into four sub-sectors :

Electronic components

Consumer electronics

Industrial electronics

Electrical products

Continued…

264

Sectors Sub sectors Components

Electronics

ComponentsSemi conductors, passive components, Printed circuit boards, metal stamped parts,

Precision plastic parts

ConsumerAudio visual products such as television receivers, portable multimedia players, speakers,

cameras and electronic games

IndustrialMultimedia and information technology products such as computers and computer

peripherals, telecommunications equipment and office equipment

Electrical Electrical

Boards, Panels and consoles, switching apparatus, lamps, air conditioners, vacuum

cleaners, ovens, transformers, cables & wires, primary cells & batteries, solar cells and

modules

Electronics

The electronics sector leads the E&E industry whereby over 38% of electronics exports is contributed by semiconductor devices, integrated circuits, transistors and valves

Electrical

The electrical sector had its beginning in the 1960s with the establishment of manufacturing plants for the import substitution of household appliances, electrical fittings, wires and cables and automotive batteries

Top Malaysian Companies

CompanyRevenue

(USD Million)

Malaysian Pacific

Industries464

Hong Leong Industries 933

Panasonic

Manufacturing Malaysia175

Unisern 370

ETI Tech Corporation 25

THE MALAYSIAN AUTOMOTIVE

INDUSTRY

Overview

266

The Malaysian national automotive industry is not only one of the major industrial sectors, but also

represents a matter of national pride

In terms of fact and figures, the sector ranks amongst the top 20 in the world and disposes of the largest

passenger car market in the ASEAN region

Today, with the opening of the market due to the ASEAN Free Trade Agreement (AFTA) the national cars

domestic market share has dropped to less than 60%

In ASEAN Malaysia is the third biggest car market with 3 car manufacturers, 8 car assemblers, 9 motor

assemblers and more than 800 component manufacturers

In the Government„s 2012 budget, several incentives for further development of the domestic automotive

industry were announced to be continued

Following global trend of environmental friendly vehicles and fuel efficiency, 100 percent exemption for

import and excise duties was proclaimed to be continued until 31 December 2013

To protect the local automotive industry, a number of import restrictions were imposed on foreign

vehicles

Malaysia has now become one of the region„s largest auto markets with vibrant production activities

Continue...

267

0

100

200

300

400

500

600

700

Total Sales Total Production

Vehicle production in Malaysia is expected to grow at a CAGR of 11.9 per cent while total vehicle

sales will likely increase at a CAGR of 16.1 per cent in the year 2012-2016

Vehicle production trends in Malaysia

Source : Malaysian Automotive Association

Continue...

268

Currently, there are four National Automotive Projects in Malaysia:

Perusahaan Otomobil Nasional Bhd (Proton)

Perusahaan Otomobil Kedua Nasional (Perodua)

Industri Otomotif Komersial (Inokom)

Malaysian Truck and Bus (MTB)

Nine assemblers settled down in Malaysia, among them the Naza Automotive Manufacturing Sdn.

Bhd (NAZA) and Hinda Sdn. Bhd.

Renowned international brands, such as BMW, Landrover, Mercedes

Benz, Peugeot, Renault, Scania from Europe and Nissan, Toyota, Mitsubishi and Mazda from Japan

are contracting and operating through the local manufacturing and Assembly Plants in Malaysia in

order to fulfill the local content requirements

For more specific cars, Bufori Motor Car Co. Sdn. Bhd. (www.bufori.com), TVR Sports Sdn. Bhd.

And TD Cars Sdn. Bhd. Are manufacturing handmade sports cars. As the volume is less than 400

units per year the company is not regarded as commercial produce

Auto components industry in Malaysia

269

Currently, there are more than 750 automotive components and parts manufacturers and 110

motorcycle components and parts manufacturers

There are about 45 vendors in the automotive component industry who has achieved the capabilities

and competency to design and develop, source components and parts and manufacture the whole

module/component both for the original equipment and replacement markets

Malaysia continues to be one of the main producers and exporters of vehicle parts, components and

accessories in the region

These products have been accepted in Japan, Germany and the UK due to their quality, compliance

with international standards and competitive prices

The local content of national cars of all ranges average between 50 - 90 % (PROTON) and 35 - 80

% respectively (PERODUA) while the percentage of local content in domestically assembled foreign

cars of all ranges average between 35 - 65%

Local component manufacturers besides having the capability to export have also undertaken cross

border investment into the neighbouring ASEAN countries, especially Thailand


IN MALAYSIA

Total Market size of Machine tool in Malaysia

Type of Machine


FY 2011 FY 2012





EDM‟s 9 8

Total 204 206



Laser 49 59

Press Brakes 9 17


Total 139 138

271


MARKET IN MALAYSIA

Market analysis for import of Machining Center - Country wise

273

Country

Market Size

(in USD Mn )

Market Share based

on USD Mn

2012 2011 2010 2012 2011 2010

Japan 24 33 32 30% 41% 51%

Singapore 5 4 3 6% 5% 5%

Germany 8 5 2 9% 6% 3%

China 3 2 2 4% 2% 3%

Rep. of

Korea6 4 1 7% 5% 2%

Other Asian

countries27 28 20 33% 36% 33%

Others 9 3 2 11% 5% 3%

Total 81 79 62

45%

30%

20%

5%

Semiconductor & Electronics Aerospace

Automotive & comonents Others


Source : Department of Statistics Malaysia

274

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 81

FY 2013 87 8%

FY 2014 95 9%

FY 2015 106 11%

FY 2016 117 11%

FY 2017 132 12%

FY 2018 147 12%



8187

95106

117

132

147

8%

9%

11% 11%

12%

12%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0

20

40

60

80

100

120

140

160

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF SINGLE SPINDLE LATHE

MARKET IN MALAYSIA


276

Country


on USD Mn

2012 2011 2010 2012 2011 2010

Japan 3.6 4.1 4.4 32% 32% 31%

Singapore 0.4 0.4 0.1 3% 3% 1%

Germany 0.1 0.2 0.1 1% 1% 1%

China 3.7 2.6 2.9 33% 21% 21%

Rep. of Korea 0.6 0.4 1.1 5% 3% 8%

Other Asian

countries1.9 3.7 3.0 17% 29% 22%

Others 1.0 1.3 2.3 9% 11% 16%

Total 11 13 14

35%

30%

20%

10%

5%

Auto components Automotive

Aerospace General Engineering

Others



ANALYSIS OF MULTI SPINDLE LATHE

MARKET IN MALAYSIA


278

Country


on USD Mn

2012 2011 2010 2012 2011 2010

Japan 16.2 7.3 8.5 31% 20% 22%

Singapore 0.4 0.2 1.4 1% 1% 4%

Germany 0.1 0.2 1.5 1% 1% 4%

China 10.5 6.0 4.9 20% 16% 13%

Rep. of Korea 1.1 3.3 2.5 2% 9% 7%

Other Asian

countries17.0 17.3 16.2 33% 47% 42%

Others 6.9 2.6 3.4 12% 6% 8%

Total 52 37 38


30%

25%

20%

15%

5%

Auto components Aerospace

Automotive General Engineering

Others


279

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 63

FY 2013 69 10%

FY 2014 77 11%

FY 2015 87 13%

FY 2016 98 13%

FY 2017 112 14%

FY 2018 128 14%



6369

7787

98

112

128

10%

11%

13% 13%

14% 14%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0

20

40

60

80

100

120

140

FY 2012FY 2013FY 2014FY 2015FY 2016FY 2017FY 2018




MACHINE MARKET IN MALAYSIA


281

Country


on USD Mn

2012 2011 2010 2012 2011 2010

Japan 18.6 23.9 5.1 32% 49% 19%

Singapore 1.8 1.2 2.8 3% 3% 11%

Germany 30.2 7.0 3.0 52% 14% 12%

China 2.8 1.4 2.2 5% 3% 8%

Rep. of

Korea0.8 1.0 1.2 1% 2% 5%

Other Asian

countries0.2 0.7 0.2 1% 1% 1%

Others 4.2 13.4 11.3 6% 28% 44%

Total 59 49 26


30%

25%

20%

15%

10%

Auto Component Aerospace

Electronic and Semiconductor General Engineering

Others


282

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 59

FY 2013 63 7%

FY 2014 68 8%

FY 2015 75 10%

FY 2016 82 10%

FY 2017 92 11%

FY 2018 102 11%



5963

6875

8292

102

7%

8%

10% 10%

11% 11%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

20

40

60

80

100

120

FY 2012FY 2013FY 2014FY 2015FY 2016FY 2017FY 2018




MARKET IN MALAYSIA


284

Country


on USD Mn

2012 2011 2010 2012 2011 2010

Japan 19.1 19.6 42.5 36% 29% 75%

Singapore 3.6 2.3 1.3 7% 3% 2%

Germany 3.3 15.4 0.6 6% 23% 1%

China 3.0 3.0 1.6 6% 4% 3%

Rep. of

Korea0.0 1.2 0.2 1% 2% 1%

Other Asian

countries2.9 2.9 3.8 5% 4% 7%

Others 20.6 22.8 6.8 39% 35% 11%

Total 52 67 57


45%

35%

15%

5%

Automotive & components Ship building & repair



285

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 52

FY 2013 55 6%

FY 2014 59 7%

FY 2015 64 9%

FY 2016 70 9%

FY 2017 77 10%

FY 2018 85 10%



5255

59

64 70

77

85

6%

7%

9%9%

10% 10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

10

20

30

40

50

60

70

80

90

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MACHINES MARKET IN MALAYSIA


287

Country


on USD Mn

2012 2011 2010 2012 2011 2010

Japan 1.5 2.8 4.2 17% 31% 53%

Singapore 0.3 0.2 0.1 4% 3% 2%

Germany 0.9 0.4 0.4 11% 4% 5%

China 1.6 1.5 0.5 19% 16% 7%

Rep. of

Korea0.1 0.1 0.1 2% 1% 1%

Other Asian

countries0.8 0.5 0.6 9% 5% 7%

Others 3.2 3.7 2.1 38% 41% 25%

Total 8 9 8


65%

20%

10%

5%

Electronic & semiconductor Automotive & components



288

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 8

FY 2013 9 7%

FY 2014 9 8%

FY 2015 10 10%

FY 2016 11 10%

FY 2017 12 11%

FY 2018 14 11%



89

910

1112

14

7%

8%

10% 10%

11% 11%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

2

4

6

8

10

12

14

16

FY 2012FY 2013FY 2014FY 2015FY 2016FY 2017FY 2018



ANALYSIS OF ULTRASONIC

CUTTING MACHINES IN MALAYSIA

Market analysis for import of Ultrasonic Cutting Machines

290

Country


on USD Mn

2012 2011 2010 2012 2011 2010

Japan 0.6 2.1 0.2 15% 31% 4%

Singapore 0.0 0.1 1% 1% -

Germany 0.1 0.0 0.1 1% 1% 1&

China 0.2 0.1 0.0 4% 1% 1%

Rep. of

Korea0.2 1.7 0.6 4% 24% 14%

Other Asian

countries1.1 0.0 0.2 27% 1% 7%

Others 2.0 2.9 3.1 48% 41% 73%

Total 4 7 4


80%

20%

Automotice and components Others



MARKET IN MALAYSIA


292

Country


on USD Mn

2012 2011 2010 2012 2011 2010

Japan 3.4 6.7 3.3 13% 13% 12%

Singapore 2.0 1.3 5.6 8% 2% 21%

Germany 0.3 0.8 2.8 1% 1% 10%

China 12.5 9.2 7.1 47% 18% 27%

Rep. of

Korea0.2 4.6 1% 9% -

Other Asian

countries4.3 4.4 2.7 16% 9% 10%

Others 3.7 23.0 4.9 14% 48% 20%

Total 26 50 26


40%

30%

15%

10%

5%

Automotive & components Electrical & Electronics

Semiconductor General Engineering

Others


293

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 26

FY 2013 27 4%

FY 2014 28 5%

FY 2015 30 7%

FY 2016 33 7%

FY 2017 35 8%

FY 2018 38 8%



26 2728

3033

3538

4%

5%

7% 7%

8%

8%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0

5

10

15

20

25

30

35

40

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MARKET IN MALAYSIA


295

Country


on USD Mn

2012 2011 2010 2012 2011 2010

Japan 3.0 0.7 4.7 18% 9% 34%

Singapore 0.3 0.1 0.1 2% 1% 1%

Germany 0.2 0.0 0.7 1% 1% 5%

China 4.5 3.1 4.0 26% 36% 29%

Rep. of

Korea1.0 1.1 0.8 6% 13% 6%

Other Asian

countries1.5 2.8 1.5 9% 32% 11%

Others 6.8 0.8 2.1 38% 8% 14%

Total 17 9 14


70%

20%

10%

Automotive & components General Engineering Others


296

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 17

FY 2013 18 8%

FY 2014 20 9%

FY 2015 22 11%

FY 2016 25 11%

FY 2017 28 12%

FY 2018 31 12%



1718

2022

25

28

31

8%

9%

11% 11%

12% 12%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0

5

10

15

20

25

30

35

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF FORGING

MACHINES MARKET IN MALAYSIA


298

Country


on USD Mn

2012 2011 2010 2012 2011 2010

Japan 5.7 5.4 13.7 16% 17% 32%

Singapore 1.6 6.6 4.9 4% 21% 11%

Germany 0.0 1.4 0.0 1% 4% 1%

China 3.7 3.0 2.5 10% 9% 6%

Rep. of

Korea1.2 3.3 10.9 3% 10% 25%

Other Asian

countries3.4 5.8 4.5 9% 18% 10%

Others 20.8 6.5 6.6 57% 21% 15%

Total 36 32 43


65%

30%

5%

Automotive and components

General Engineering

Others


299

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 36

FY 2013 38 6%

FY 2014 41 7%

FY 2015 45 9%

FY 2016 49 9%

FY 2017 53 10%

FY 2018 59 10%



36 3841

4549

5359

6%

7%

9% 9%

10% 10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

10

20

30

40

50

60

70

FY 2012FY 2013FY 2014FY 2015FY 2016FY 2017FY 2018



344377

412452

497

549

607

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018


300


Auto OEMs and Electronics segments are expected to drive the growth of machine tool segment in Malaysia

There would be a significant demand for machine tools from the aerospace segment as well

Also, the increased amount of FDIs and domestic investments will also act as catalysts for the growth of

Machine tool industry in Malaysia

Government support for machine tool manufacturers

301

The Malaysian Government supports machine tool manufacturers by providing the

following tax incentives:

(1) Pioneer Status with tax exemption of 70% on statutory income for a period

of 5 years

Or

(2) Investment tax allowance of 60% on qualifying capital expenditure incurred

within a period of 5 years. The allowance can be offset against 70% of the

statutory income for each year of assessment

Reinvestment allowance of 60% on qualifying capital expenditure is provided for 15

years

Import duty and sales tax exemption is allowed for machine tools, spare parts and

consumables, raw materials and components

Malaysia’s Engineering support industry

302

Moulds & Dies

• Capability to manufacture most types of moulds, dies and tooling to complement the needs of manufacturing sector

• Major companies include Sum Hing, Megatool Precision, Sun Tong Seng, HH Precision Mould etc.

Metal Casting

• About 70 companies operating making castings for engineering spare parts, quality machinery spare parts, pumps and pump parts, palm oil mill machinery parts etc.

• Major companies include Yoonsteel, MMC Metal, Swanmet, Metalock Casting etc.

Metal Stamping

• Stamped parts for industries like electrical and electronics, automotive, machinery equipment etc.

• Major companies include JP Metal, Kobakin, NJ Manufacturing, Cybron TL etc.

Opportunities for Indian manufacturers in Malaysia

303

Indian machine tool manufacturers have high degree of acceptability in Malaysia

Major suppliers and end users in Malaysia feel that India does not have the capability

to export their products as they have to meet with the domestic demand


Malaysian market are:

Excellent after sales service support

Competitive price compared to Japanese and European suppliers

Convince the end user industry about the features and quality of the

products

Indian manufacturers should have an excellent engineering support infrastructure

They should have good contacts with associations like Malaysian Investment

Development Authority who will be the first point of contact to enter into the

Malaysian machine tool industry

They should take part in all machine tool related exhibitions and increase the

awareness about Indian manufacturers and products

List of exhibitions and magazines

304

Asian International Metal Working, Machine Tool, CAD/CAM, Metrology, Mould &

Die, Surface & Heat Treatment, Sub-Contracting, Foundry, IA, Robotics and Precision

Engineering and Welding Technology Exhibition

Malaysia's Manufacturing Exhibition (MYMEX), specializing on machine tool &

metalworking returns to the Southern Region of Malaysia

Designed, machined, moulded and pressed into the shape as programmed and

specified by the manufacturing sectors it targets and the industries it serves at large

Major Magazines Major Associations and bodies

Malaysian Investment Development Authority

Malaysia Mould and Die Association

MYANMAR

Overview of Myanmar

Burma officially the Republic of the Union of Myanmar,

commonly shortened to Myanmar

The country possesses abundant water resources - more

than 5,000 km of rivers that are navigable, and more than

2,000 km of coastline along the Indian Ocean

Burma is a country rich in jade and gems, oil, natural gas

and other mineral resources

The outlook for Myanmar economy over the near term is

positive, bolstered by strong export earnings from

resource-based commodities and an increase in foreign

direct investment (FDI)

Major trading partners include the Thailand, India, China,

Japan, Korea, Thailand and Singapore

306

Country Map


307

Currency Burmese kyat (MMK)

Fiscal year 1 April - 31 March

Trade

organizationsWTO, ASEAN, BIMSTEC

GDP 5.5% (2013 est.)

GDP by sectoragriculture: 43%, Industry: 20.5%,

services: 36.6% (2011 est.)

Exports $8.23 billion (2012 est.)

Main export

partners

Thailand 40.5%,India 14.7%

China 14.2%,Japan 7.4%

(2012 est.)

Export Goods

Natural gas, wood products, pulses,

beans, fish, rice, clothing, jade and

gems

Imports $7.477 billion (2012 est.)

Main import

partners

Fabric, petroleum products, plastics,

fertilizer, machinery, transport

equipment, cement, construction

materials, crude oil; food products,

edible oil

Import goods

China 37.0%, Thailand 20.2%,

Singapore 8.7%, South Korea 8.7%

Japan 8.2%, Malaysia 4.6% (2012 est.)

4.64.9

2.3

3.3

-0.5 -1.3

5.2

3

3.8

1.1

1.8

5.35.5

6.4

GDP Growth

GDP Growth

Source : World Bank

Key sector

• Gemstones

The Union of Myanmar's rulers depend on sales of precious stones such as sapphires, pearls and

jade to fund their regime. Rubies are the biggest earner; 90% of the world's rubies come from the

country, whose red stones are prized for their purity and hue. Thailand buys the majority of the

country's gems. Burma's "Valley of Rubies", the mountainous Mogok area, 200 km (120 mi) north

of Mandalay, is noted for its rare pigeon's blood rubies and blue sapphires

• Oil and Gas Industry

Myanmar holds one of the largest offshore gas field in the Asia-Pacific region. Estimated gas

reserves reach 72 trillion cubic feet, 71 tcf of them offshore. Crude oil reserves are 540 million

barrels. Myanmar‟s earnings from oil and natural gas exports amounted to more than $2.52 billion

in 2010-2011, more than $3.4 million in 2011-2012, and more than $1.64 million in 2012-2013

fiscal years

• Garment & Textile Industry

The ongoing quest for low cost production has drawn manufacturers' attention to the clothing

industry in Myanmar. exports from the nation's 200 garment factories, 195 of which are privately

held, reached US$770 million in 2011. Myanmar has seen 19 foreign companies entering the

country's garment industry within the last eight months of 2012

308

Key Figures (In RM Billion)

309

INDUSTRY 2013 2012 2011

1. GROSS DOMESTIC PRODUCT 789.8 751.5 711.5

a. Agriculture, forestry & fishing 56.9 54.9 54.3

b. Mining 66.4 63.4 62.6

c. Manufacturing 195.9 186.7 178.2

d. Construction 29.3 26.5 22.5

e. Services 431.2 410.0 385.2

Plus import duties 10.1 10.0 8.7

2. Gross National Income 749.6 693.1 666.9

a. Private consumption 408.1 380.0 352.9

b. Private investment 135.6 116.9 95.8

c. Public consumption 103.9 99.1 94.2

d. Public investment 90.8 84.9 72.4

e. Exports of goods & services 722.5 714.1 714.8

f. Imports of goods & services 672.0 650.0 621.0


Source: Ministry of Finance and Department of Statistics

GARMENT & TEXTILE INDUSTRY OF

MYANMAR

Overview

• In 2007-08, garment exports brought in USD 401 million; this has grown at a CAGR of 16.1% to

USD 845.9 million in 2011-12. Woven garments have driven the growth of exports while the

exports of knit products have been flat over the years

• At present, Myanmar‟s garment manufacturing is dominated by Woven products which account for

more than 90% of the total manufacturing. There are approximately 400 garment manufacturing

units, each with a varying number of machines.

• Most of these garment manufacturing units cater to the domestic market and have a vast scope

for improvement on the efficiency, processes, quality and compliance front. Some suits

manufacturing factories have been set up by Japanese and Korean companies that cater to

markets in those countries

• Japan, the Republic of Korea, Germany, Spain, the United Kingdom and Turkey are the major

garment export destinations, comprising about 85% of total garment exports

• Competitive pricing is one of the key factors governing business decisions in the garment industry

and, as labor costs contribute about 15% to 20% of the total garment cost, will directly help

Myanmar to edge out other garment manufacturing hubs

311

Continue…

312

Pwintphpu

Pyay

TaunggysKyaingtonPakakku

sarlingyi

Kayin

Sagaing

Major Manufacturing Location

1. Opal Int'l Co., Ltd

2. Panda Group Of Companies

3. THY Company Limited

4. Sein Kabar Textile Co.,Ltd

5. Ni Ni Lace & Textiles

6. Wi Thar Khar Co., Ltd.

7. Htan Zae Co., Ltd

8. Mandalay Textile Co., Ltd.

9. Sein Kabar Textile Co., Ltd.

10. JV Textile Factory

Yangon

Continue…

313

51.250.3 36.5 31.4

349.8

405.5420.9

521.9

401

455.8

457.4

553.3

1 2 3 4

Woven Knits Garment Export

Myanmar's Garment Export Performance (USD Mn)

Source : Myanmar Garment Manufacturers’ Association

AUTOMOBILE INDUSTRY OF MYANMAR

Overview

According to the data released by the RTAD, around 85 percent of total vehicles are motorcycles

which mainly are Japanese and Chinese brands

Motorcycles have a steady growth rate of 8-10 percent per annum and are expected to continue with

this growth rate in the future

However, passenger cars and commercial vehicles which received direct benefits from the relaxing

import regulation are expected to have 15% growth per annum in the coming years compared to only

4 - 5 % growth before 2012

315

Relaxing Regulations:

The vehicle import regulation has been relaxed after the election during 2010-11 by making easier

the import of commercial vehicles - trucks above 3 tonnes and buses over 15 seats

Another breakthrough rule introduced was the “Old car substitution program” - allowing the

application for car import permits to substitute older cars (initially those 20-40 years old) for newer

models (those manufactured after 1995)

From May 2011, any Myanmar citizen aged 18 years and up could import one unit of passenger car

under his/her own name, only for personal usage

Myanmar's automotive market is likely to grow at a compound annual growth rate (CAGR) of 7.8 per cent

(2012-2019), driven by a growing economy, infrastructure development and increasing income

New and upcoming projects

316

Chevrolet has opened a Brand Experience Centre and is launching a three-tier

corporate social responsibility (CSR) campaign as part of its unique entry

strategy in its newest market of Myanmar

A Nissan car factory is being planned on 80 acres of land in Myanmar's Bago

Region; The local company, United Diamond Motors have been authorized as

the official distributor; the plant is expected to be completed by 2015

The brand already has a service shop in Yangon which handles after-sales

service for used MMC-brand vehicles already in the market; now panning to

begin new car sales with the L200 pickup which it is importing from Thailand

Other plans:

Myanmar Motors Pte Ltd joint-venture with Mitsubishi Motors will take on after-sales operations,

Many Japanese auto manufacturers have inquired Myanmar Investment Commission, the governing body of foreign

investment in Myanmar, for possible investments.

Jardine Cycle and Carriage Ltd of Singapore, distributor of KIA, Mercedes-Benz, Mitsubishi and Citroen, has got

approval by Myanmar Investment Commission to open a service centre for automobiles in Yangon

Land Rover (UK) started the official sale of its vehicles in Myanmar

Source : Myanmar Automobile Industries’ Association


IN MYANMAR

Total Market size of Machine tool in Myanmar

Type of Machine


FY 2011 FY 2012


Turning Centers 3.74 9.16

Machining Centers 10.97 8.67

Grinding Machines 2.39 3.17

EDMs 0.05 0.02

Total 17.15 21.02


Presses(Mechanical/Hydraulic/Servo) 2.86 1.16

Laser 0.22 0.40

Press Brakes 8.12 3.06

Cold & Hot Forging 3.22 1.32

Total 14.42 5.94

318


MARKET IN MYANMAR

Market analysis for import of Machining Center

320

Country

Market Size

(in USD Mn)

Market Share based

on USD Mn

2012 2011 2012 2011

China 6.58 10.97 76% 100%

Italy 1.05 - 12% -

EU-27 1.04 - 12% -

Total 8.67 10.97

Eu-27 includes countries like Germany, UK, Sweden, Belgium, Denmark etc.

Source : Central Statistical Organization , Myanmar

321

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 9

FY 2013 9 3%

FY 2014 10 4%

FY 2015 10 5%

FY 2016 11 5%

FY 2017 11 7%

FY 2018 12 7%



9 9 1010

1111

123%

4%

5% 5%

7% 7%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0

2

4

6

8

10

12

14

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018



ANALYSIS OF SINGLE SPINDLE LATHE

MARKET IN MYANMAR


323

Country

Market Size

(in USD Mn)

Market Share based

on USD Mn

2012 2011 2012 2011

China 8.53 2.46 95.8% 98%

Russian

Federation0.24 - 2.7% -

Thailand 0.09 0.01 1.0% 0.4%

Singapore 0.02 0.04 0.2% 1.59%

Japan 0.01 - 0.1% -

Total 8.90 2.51


ANALYSIS OF MULTI SPINDLE LATHE

MARKET IN MYANMAR


325

Country

Market Size

(in USD Mn)

Market Share based

on USD Mn

2012 2011 2012 2011

China 0.25 0.16 96% 13%

Vietnam 0.01 4% -

Malaysia - 0.92 - 75%

Rep. of Korea - 0.14 - 12%

Total 0.26 1.22


326

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 9

FY 2013 10 6%

FY 2014 10 7%

FY 2015 11 9%

FY 2016 12 9%

FY 2017 13 10%

FY 2018 15 10%



910

1011

1213

15

6%7%

9% 9%

10% 10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0

2

4

6

8

10

12

14

16

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MACHINE MARKET IN MYANMAR


328

Country

Market Size

(in USD Mn)

Market Share based

on USD Mn

2012 2011 2012 2011

China 0.26 0.22 67% 100%

EU-27 0.05 - 14% -

Italy 0.05 - 14% -

Singapore 0.03 - 5% -

Total 0.40 0.22


329

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 0.40

FY 2013 0.42 4%

FY 2014 0.44 5%

FY 2015 0.47 7%

FY 2016 0.50 7%

FY 2017 0.54 8%

FY 2018 0.58 8%



0.40 0.42 0.440.47

0.500.54

0.58

4%

5%

7% 7%

8% 8%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018




MARKET IN MYANMAR


331

Country

Market Size

(in USD Mn)

Market Share based

on USD Mn

2012 2011 2012 2011

China 2.93 2.29 92% 96%

Russian

Federation0.12 - 4% -

Thailand 0.09 0.07 3% 3%

Japan 0.02 - 1% -

Malaysia - 0.02 - 1%

Total 3.16 2.39


332

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 3.17

FY 2013 3.36 6%

FY 2014 3.60 7%

FY 2015 3.88 8%

FY 2016 4.19 8%

FY 2017 4.61 10%

FY 2018 5.07 10%



3.17 3.363.60

3.884.19

4.615.07

6%

7%

8% 8%

10% 10%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.00

1.00

2.00

3.00

4.00

5.00

6.00

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018




MACHINES MARKET IN MYANMAR


334

Country

Market Size

(in USD Mn)

Market Share based

on USD Mn

2012 2011 2012 2011

China 0.017 0.05 93% 100%

Thailand 0.001 - 7% -

Total 0.018 0.05


335

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 0.020

FY 2013 0.020 2%

FY 2014 0.021 3%

FY 2015 0.022 4%

FY 2016 0.023 4%

FY 2017 0.024 6%

FY 2018 0.026 6%



0.020 0.0200.021

0.0220.023

0.024 0.026

2%

3%

4% 4%

6%

6%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.000

0.005

0.010

0.015

0.020

0.025

0.030

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018




MARKET IN MYANMAR


337

Country

Market Size

(in USD Mn)

Market Share based

on USD Mn

2012 2011 2012 2011

Singapore 0.35 0.02 30% 1%

China 0.30 1.90 26% 66%

Russian

Federation0.22 0.22 19% 8%

Japan 0.20 0.04 17% 1%

Thailand 0.09 0.04 8% 1%

Rep. of Korea - 0.59 - 21%

Total 1.16 2.86


338

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 1.16

FY 2013 1.21 4%

FY 2014 1.27 5%

FY 2015 1.34 6%

FY 2016 1.42 6%

FY 2017 1.54 8%

FY 2018 1.66 8%



1.16 1.211.27

1.341.42

1.541.66

4%

5%

6% 6%

8%8%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018




MARKET IN MYANMAR


340

CountryMarket Size

(in USD Mn)

Market Share based

on USD Mn

2012 2011 2012 2011

China 1.91 4.20 61% 52%

Thailand 0.58 0.15 19% 2%

EU-27 0.17 0.91 6% 11%

Italy 0.17 1.00 6% 12%

Rep. of Korea 0.09 - 3% -

Japan 0.08 0.02 3% 0.2%

Vietnam 0.04 0.04 1% 0.5%

USA 0.02 - 1% -

Singapore - 1.80 22%

Total 3.06 8.12


341

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 3.06

FY 2013 3.12 2%

FY 2014 3.18 2%

FY 2015 3.28 3%

FY 2016 3.38 3%

FY 2017 3.48 3%

FY 2018 3.58 3%



3.063.09

3.12

3.18

3.25

3.31

3.38

1% 1%

2% 2% 2% 2%

0

0.005

0.01

0.015

0.02

0.025

2.90

3.00

3.10

3.20

3.30

3.40

3.50

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018



ANALYSIS OF FORGING

MACHINES MARKET IN MYANMAR


343

Country

Market Size

(in USD Mn)

Market Share based

on USD Mn

2012 2011 2012 2011

China 1.25 3.22 94% 100%

Indonesia 0.04 - 3% -

Thailand 0.03 - 2% -

Total 1.32 3.22


344

Year

Projected

market size

(In USD Mn)

Growth in

%

FY 2012 1.32

FY 2013 1.33 1%

FY 2014 1.36 2%

FY 2015 1.40 3%

FY 2016 1.44 3%

FY 2017 1.49 3%

FY 2018 1.53 3%



1.321.33

1.36

1.40

1.44

1.49

1.53

1%

2%

3% 3% 3% 3%

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

1.20

1.25

1.30

1.35

1.40

1.45

1.50

1.55

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018




345


Auto OEMs and Electronics segments are expected to drive the growth of machine tool

segment in Malaysia

2627

2931

3234

37

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

APPENDIX

References

347

World Bank - www.worldbank.org

The Thai Automotive Industry Association - www.taia.or.th

Thai Auto parts Manufacturers Association - www.thaiautoparts.or.th

Thailand - Japan Technology Promotion Centre

National Statistical Office of Thailand - www.web.nso.go.th

Metal Working and Machining Industries Development Institute

The Association of Thai Electrical & Electronic Industries - www.iaesi.org.il

Vietnam Electronic Industries Association - www.veia.org.vn

Vietnam Automobile Manufacturers Association (VAMA)

Vietnam Steel Association (VSA)

Vietnam Machine Tool Association (VMTA)

Vietnam Association of Mechanical Industry

General Statistics Office Of Vietnam - www.gso.gov.vn

Association of Indonesian Automotive Industries - www.gaikindo.or.id

Indonesian Automotive Parts and Components Industries Association (GIAMM)

http://www.worldbank.org/

http://www.taia.or.th/

http://www.thaiautoparts.or.th/

http://www.web.nso.go.th/

http://www.iaesi.org.il/

http://www.veia.org.vn/

http://www.gso.gov.vn/

http://www.gaikindo.or.id/

Continue…

348

Indonesian Ministry Of Trade - www.kemendag.go.id

Federation of Metalwork and Machine Industry Association

Association of Metal work and Machine

National Statistical Coordination Board Philippines - www.nscb.gov.ph

Electronics Industries Association of the Philippines - www.eiapi.org.ph

Semiconductor and Electronics Industries in the Philippines - www.seipi.org.ph

Philippine Economic Zone Authority - www.peza.gov.ph

The Automobile Association Philippines - www.aaphilippines.org

Department of Finance, Philippines - www.dof.gov.ph

Philippine National Statistical Coordination Board - www.nscb.gov.ph

Malaysian Automotive Association - www.maa.org.my

Malaysian Investment Development Authority - www.mida.gov.my

Malaysia Mould and Die Association - www.mmada.org.my

Department of Statistics Malaysia - www.statistics.gov.my

Myanmar Garment Manufacturers’ Association

http://www.kemendag.go.id/

http://www.nscb.gov.ph/

http://www.eiapi.org.ph/

http://www.seipi.org.ph/

http://www.peza.gov.ph/

http://www.aaphilippines.org/

http://www.dof.gov.ph/

http://www.nscb.gov.ph/

http://www.maa.org.my/

http://www.mida.gov.my/

http://www.mmada.org.my/

http://www.statistics.gov.my/

Continue…

349

Myanmar Automobile Industries’ Association

Central Statistical Organization , Myanmar - www.mnped.gov.mm

http://www.mnped.gov.mm/

List of contacts

350

Sr.No. Name of Company Location Name of Contact Person Designation

1 Embassy of India, Jakarta Indonesia Mr Rakesh Kumar AroraFirst Secretary

(Eco & Com)

2 Ministry of Trade Indonesia Pusat Hubungan Masyarakat Public Information Division

3 Indonesian Ministry of Trade Indonesia Patrick Henrikus Tangkau

Consulate General of the Republic

of Indonesia Mumbai Hariyanta Soetarto Consul (Economics) & Hoc

4 Thai Trade Center Malaysia Ms.Vichada Pabunjertkit Minister Counsellor (Commercial)

5 Department of Statistics Malaysia Mr Tan Bee Bee External Trade Statistics Division

6 Department Of Statistics Malaysia Siti Fatimah Mohamad Ghazali Users' Services Unit

7 Department Of Statistics Malaysia Wan Abdul Rahim Wan Ahmad Chief Statistician

8 High Commission of India Malaysia Vinesh Kr. Kalra Second Secretary(Commerce)

9Ministry Of International Trade And

IndustryMalaysia Tay Lee Looi

Senior director - FTA Policy and

Negotiations Coordination

Department

10Trade and Services Promotion

DivisionMalaysia Mr.Uthiya Kumar Appanan Machinery and MRO Unit

11 Department Of Statistics Malaysia Dr. Haji Abdul Rahman Hasan Chief Statistician

12Ministry of International Trade and

Industry Malaysia Ms Rita Elisha Mering Strategic Planning Division

13Malaysian Investment

Development AuthorityMalaysia

Muhammad Khaidir Bin

Hairuddin

Machinery & Equipment and

Advanced Engineering Division

List of contacts

351

Sr.No. Name of Company LocationName of Contact

PersonDesignation

14 Bureau Of Import Services Philippines Tess Aquino

15 Bureau Of Import Services Philippines Ma. Victoria M. Pijuan Division Chief

16

Trade Policy and Analysis Section,

Trade and Investment Division,

United Nations ESCAP

Thailand Mr Rajan Sudesh Ratna Economic Affairs Officer

17

Trade Policy and Analysis Section,

Trade and Investment Division,

United Nations ESCAP

ThailandDr. Witada

Anukoonwattaka

Trade Policy and Analysis

Section

18 General Statistics Office Vietnam Pham Thi Quynh Loi Deputy Director

19Vietnam Automobile Manufactures‟

Association Vietnam Le Thi Thu

20 Toyota Motor Vietnam Co., Ltd. Vietnam Mr Nguyen Trung HieuCorporate Strategic

Planning Division

21Vietnam Automobile Manufactures‟

Association Vietnam Jesus Metelo Arias Chairman

22 Department of Commerce New Delhi Mr R K AroraDy. General Manager

(Systems)

THANK YOU

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