Capital Goods refer to products that are used in the production of other products but are not incorporated into the new product. These include machine tools, industrial machinery, process plant equipment, construction & mining equipment, electrical equipment, textile machinery, printing & packaging machinery etc. The Capital Goods industry is the “mother” of all manufacturing industry and is of strategic importance to the National security and economic independence. It is in the interest of the User Sectors that the Capital Goods industry should be strengthened since it is a known fact that the presence of a strong domestic industry increases competition and helps in reducing the capital cost of the project and most important, the maintenance of plant and machinery can be done economically. The imported plants come at the lowest cost but the importers make up for that in their high priced maintenance contracts & spares. The Capital Goods Sector was on an upswing since March 2002, due to investments having taken place in the infrastructure, oil & gas sector, power sector, steel plants, automobile industries etc. The capital goods industry has evolved over these years in terms of competitiveness by consolidating. Hence the number of players are few. Due to its strategic importance for the country, it is essential to encourage manufacturing of capital goods rather than import and enhance the value addition and technology transfer. The annual sales of the capital goods industry was about Rs.110,000 crores during 2008-09 though the market is more than Rs 300,000 crores with between 60 to 70 % of equipment across all categories being imported, with the drastic fall in customs duty and the inherent dis-advantages faced by domestic manufacturers thereby making them cost un-competitive and reducing them to be traders and assemblers, instead of manufacturers. Its contribution to the exchequer has been in excess of Rs.20,000 crores in terms of customs, sales tax and excise collections and which will be higher if corporate taxes are added. The capital investments made in this sector has registered a healthy CAGR of close of 10% for a period from 1995 to 2005. The industry currently employs 6 million skilled and semi-skilled workers. It needs to be highlighted that this sector generates the much needed employment for less educated persons like fitters, welders, machine operators and ITI graduates and employs all collared people.
Key Initiatives / Information
Presentations Of the CII National Conference on Emerging Opportunities for the Capital Goods Industry 26th November 2012, Hotel Lalit, New Delhi.
The Indian capital goods sector, the core of the manufacturing sector, requires attention to technology, SME support, skill development, and import substitution to meet the targets of the National Manufacturing Policy. This article by Mr Chandrajit Banerjee, Director General, CII appeared in The Financial Express on 13 November 2012.
In the article featured in the “Guest Column” of the “Edit Page” in the Economic Times dated 1 November 2011, Mr Chandrajit Banerjee, Director General (CII) believes that the clearance of the National Manufacturing Policy (NMP) by the Cabinet is a historic step on the economic reform agenda and will set the pace for a much higher trajectory of growth in employment, investment and output.
Mr Banerjee points out that the most important pillar of the NMP is the intention to create 100 million new jobs and further states that the industry will work with the government to convert the policy into a real tool to meet the objectives of inclusive growth.
Confederation of Indian Industry (CII) and United States-India Educational Foundation (USIEF) announce the Fulbright-Nehru-CII Fellowships for Leadership in Management Program for the academic year 2012-2013. Indian business managers, whose employers would be willing to bear 50% (US$ 18,400) of the total cost (US$ 36,800), may compete to attend this specially designed management program at the Carnegie Mellon University’s Tepper School of Business in Pittsburgh from May 23 to July 31, 2012. Aimed to broaden overall perspectives and to strengthen strategic, functional and leadership skills in global business, this program combines classes with group work, industry visits, and networking.
Complete announcement matter and application materials are available at USIEF website www.usief.org.in.
November 15, 2011 is the application deadline.
Through the Economic Times article the author, Mr Chandrajit Banerjee, Director General (CII), makes a case for the fortification of the mining sector through governmental interventions such as corporatisation, support for exploration and catalysing exports.
The author believes that a strong mining sector would not only contribute more significantly to the country’s GDP but could also help focus on livelihood for displaced persons, safety for miners, use of the best-in-class technology, sustainability and a more judicious use of the natural resources.
76th CII Northern Region Business Outlook Survey is a quarterly study conducted to gauge the sentiment in the economy. Earlier, the survey was conducted bi-annually, but from the 74th Survey onwards the study is conducted on a quarterly basis in order to get a more frequent indicator of business sentiment. The current survey gives an outlook on business sentiments for the first quarter of 2011-12 as compared to the last quarter of 2010-11.
The CII and WMG have worked together for over a decade. The Group understands the need of Indian industry better than any other UK institution. India is fast becoming a manufacturing economy and, more it can learn from the expertise of organizations like WMG, the more competitive it will be as a country. The Group has links with many of its top engineering / manufacturing companies which include Tatas, TVS Motor, Sundaram Clayton and others and has been instrumental in helping these companies achieve global competitiveness.
Few sectors of the capital goods sector, which have a lower gestation period & are off the shelf products has been witnessing a downturn since October 2008. The performance of the capital goods companies are expected to lower in 2009 - 2010 as compared to 2008 - 2009 as the order in flow had slowed down since the global recession. It is expected that the industry will foresee an upswing either in the last quarter of the current financial year or first quarter of next financial year as order inflows have picked up.
CII News Update
Continuous Change and Improvement is the key driver for overall growth of the Organisation said by Dr Krishan Kumar, Former Director, Maruti Centre of Excellence (MACE) in his special address at the 4th Lean Six Sigma Summit organized by Confederation of Indian Industry (CII ) NR in New Delhi, toda.....
New Delhi 13th March, “The G-20 countries should look for ways for recapitalizing Multilateral Development Banks. At present the World Bank lending for infrastructure development is too miniscule,” said Dr, Montek Singh Ahluwalia, Deputy Chairman, Planning Commission of India, at CII organised Ind.....
Expressing concern over the two day Bharat Bandh organized by eleven trade Unions, Mr Adi Godrej, President, CII said that “the strike has significantly disrupted economic and industrial activity in many parts of the country. It is not clear how the Bandh would address the issues that are sought t.....
This year despite surplus production of sugar over the domestic demand, industry has had to incur losses due to cheaper imports competing with domestically produced sugar from sugarcane of Indian farmers. Current duty structure of just 10% and low prices of sugar in the international market are lea.....
Consulting / Advisory Services
CII established this Centre in 1999 with the support of Govt. of AP, TIFAC (Under DST Govt. of India).CII –APTDC is a Pioneer in the Country for establishing Public PrivatePartnership for Technology & Intellectual Property Services.
Six Sigma approach is being widely used all over the world for reduction in process variation and waste elimination.
Total Productive Maintenance, shortly termed as TPM, is the concept originated and developed by Japan Institute of plant Maintenance (JIPM) Tokyo, since late sixties. JIPM-TPM is the key for the operational excellence for many Japanese companies.
Legal metrological requirements, relevant to the manufacturing sector, as laid down by way of standards under the Weights and Measures Act, 1976 and the Packaged Commodity Rules, 1977 have assumed critical importance in modern production lines.
CII and Export-Import (EXIM) Bank of India jointly established the Award for Business Excellence in 1994 with the aim to enhance the ''Competitiveness of India Inc.'' The Award is based on the EFQM (European Foundation for Quality Management) Model for Excellence.
It was more than two decades ago when CII pioneered the quality movement in India. Over this period the country has witnessed a tremendous improvement in the quality of its products and services and made Indian companies highly competitive in the global market. This has largely been achieved through
The key to ensure sustainable Quality up gradation and continuous improvement in an Organization is the willingness of its employees to adapt to changing paradigms.
Increased global competition has forced companies to think aggressively about effective Cost Management. A low cost high quality product has become an object of desire, to gain a competitive edge. It is essential that cost management addresses not just individual activities or cost centres but the e
Energy efficiency & conservation is a high priority area for industries. Our study & experience show that there is around 10-30% energy saving potential in industries and commercial buildings. The Centre offers consultancy services on energy audits & conducts audit with most accurate estimate of sav
In the light of the importance of SME sector in India, a conscious effort to promote industrial development through cluster approach has been taken up by the CII. Today companies in the SME sector are very keen to become competitive. This means being competitive in the global market. To become an
CII Awards & Recognitions
CII and Export Import Bank of India have, in 1994, jointly established the CII-EXIM Bank Award for Business Excellence, with the aim of enhancing the Competitiveness of India Inc. The Award is based on the internationally recognized EFQM Excellence Model.