The Gears Industry in India is categorised into Industrial Gears and Auto Gears. The Industrial Gears segment manufactures Gears, Gearboxes, Gear Motors and Gear Assemblies. Industrial gearboxes are a common type of power transmission devices, used as an intermediary equipment in various types of machineries and heavy electrical equipment. The majority of the players in the domestic market manufacture standard products i.e. standardised catalogue type, as it requires less customisation and engineering. There are only a few players in customised gears manufacturing, which requires advanced technology and stringent adherence to international quality and manufacturing standards, with requisite infrastructure and highly skilled manpower.
Industrial growth and in turn, industrial capital expenditure in sectors like Power, Steel, Refineries, Cement, Textiles, Sugar and Mining stimulate the growth for industrial gearboxes market. High speed gears are widely used in turbo applications like steam turbines, gas turbines, compressors, pumps, blowers and test rigs. The aftermarket for above products is strongly linked to plant utilisation levels, cost pressures on maintenance budgets, policy of keeping insurance spares, emergency breakdowns and alternate sourcing other than global OEMs to bring down product life cycle costs.
The increasing deployment of digitalisation and robotics in manufacturing industries including paper, rubber, plastic, chemical, and cement with booming construction industry, especially in developing nations, is facilitating the growth of the industrial gearbox market. The growth in industrial segments require more power generation which in turn is expected to increase the steam turbine market and the industrial gearboxes. A rise in the adoption of combined-cycle natural gas plants as a reliable source of energy is one of the key reasons for the growth of the steam turbine and industrial gearboxes.
Large investments made by private organisations and Governments in material handling, metal and mining, construction, constant investments made in developing automation in India, China, and Japan, are expected to add to the growth in global industrial gearbox market.
The expansion of Oil & Gas downstream infrastructure is expected across the globe due to increasing demand for refined petroleum products. African countries such as Nigeria and Algeria are planning to become regional hubs for refiners and opportunities will arise for new refineries in these markets.
As a result of the policies being pursued by the Government of India, business sentiment and capacity utilisation have improved perceptibly and there are some indications of fresh capital investment in industrial segments like steel, cement, sugar and oil and gas. Increased acceptance of engineered capital goods from India in global markets has boosted sourcing from quality-conscious credible Indian manufacturers.
New opportunities for power generation is expected from Waste to Electricity from various states like Kerala, Punjab and Telangana. Besides, Waste Heat Recovery plants are becoming popular from cement and steel sectors.
In addition, there are many Government policies which may benefit the business in short & long term:
This business caters to both High Speed Gears and niche Low Speed Gears segments used as speed increasers and speed reducers. It has a leadership position in High speed gears segment in India and enjoys a market share in the range of 80-90% across all major OEMs supplying Steam Turbines, Pumps and Compressors, FD and ID Fans.
Major customers for high speed gears segment include Indian OEMs of Steam Turbine, Gas Turbine, Centrifugal Pumps and Compressors, FD and ID Fans catering to API and Non-API segments. In the low speed segment, the Company caters to gearboxes used in reciprocating compressors, pumps mainly used in Oil & Gas and Fertiliser plants. The Company also caters to the low head hydropower units which require gearboxes for power generation.
Currently, Gears business is catering to international OEMs successfully in select geographies like Japan, Korea, China, Malaysia, and Indonesia and in Europe (Italy, France, Germany, and Spain), US and Latin America. During the year, the business entered new regions of Brazil and Czech Republic. Most of the global OEMs have relationship with PTB through their Indian operations which is being leveraged.
Aftermarket segment caters to high speed and niche slow speed gears, gearboxes, services of Triveni and other global brands of gearboxes across industry segments including power upgrades, for API & AGMA requirements. Make-in-India initiative of the Government of India has been instrumental in the reduction of capital goods import, particularly from public sector, helping PTB business to push replacement solutions strongly.
Major focus in Aftermarket Exports was in the Middle East followed by South East Asia and East Africa. PTB intends to build on the existing strategy of spreading network of aligned agents to achieve growth in the export markets, as that remains a strong focus area for the business going forward.
In view of numerous uncertainties due to COVID-19, the turnover of the aftermarket segment declined by 10% but order booking was maintained at last year level, which aggregates to about 40% of overall PTB’s business.
Consistent with the strategy of exploring new avenues and segments, PTB has expanded its presence in compressor as well as Power Gen Load gears as both these segments offer promising growth potential from domestic and export markets, and particularly from different operating units of existing large accounts. Ten new high potential customers were added during FY 21.
Refining, IPP, Steel, Petrochemical and Fertilisers were the major contributors for FY 21 order bookings.
In the Aftermarket segment also, the business aligned to the overall strategic push whereby exports grew by 25% during the year and it is expected that the trend may continue in future as well. Customer retention and growth through existing relationships has been consistent as during FY 21 with 95% of bookings coming from existing customers.
Power Transmission business has partnered with global OEMs for precision manufacturing of components for wind gearboxes as well as industrial high-speed compressor gears, helping the business to enhance capacity utilisation productively. This segment offers high potential for growth for exports in the medium to long term. In FY 21, Built to print segment has significantly contributed towards higher order booking from the overall exports than the previous year.
The new segment of compressor gears which the Company entered in the last few years, with leading OEMs is expected to show growth in the coming years from domestic and export markets.
Defence business is poised to cater to engineered equipment requirements for Defence under the Make in India initiative. With the background of having experience in critical rotary machinery technology and experience of supplying and meeting requirements of Defence and Defence support organisations in the past, group’s expertise in turbo machinery, Defence business has been able to get approval for both new projects as well as for refurbishing requirements in naval defence space.
In order to promote indigenous design and development of defence equipment, most of the new enquiries in Indian Navy have been issued to promote Indian industry for major mission critical equipment and services. Triveni is actively engaged with the Naval headquarters, Shipyards and other naval establishments to align with the major upcoming projects with indigenous designs in the area of shafting and critical application pumps or with transfer of technology (ToT) collaborations for varying products as stabilisers, power generation sets, etc. In addition, Triveni is also venturing into niche areas like propulsion system integration with a technology partner in a collaborative work share arrangement.
The Government of India’s ‘Make in India’ initiative has led to new opportunities for diverse engineered products and Triveni’s Mysuru facility is actively participating in many of these indigenous development projects. The Defence Procurement Policy 2020 focusses on self-reliance for various equipment in Design, Development and Manufacture by Indian Industry. Most of the new projects envisaged by the Defence sector are customised requirement for critical equipment, offering substantial value to the existing portfolio of PTB’s rotating machinery. PTB is initially focussing on Naval Defence markets and has gained some foothold in the critical turbo pumps space.
Defence business can significantly contribute on indigenisation of gearboxes to further align with Aatma Nirbhar programme announced by Government of India. Defence business is also currently working on several projects under Make-In-India programme, related to engineered products as well as gearboxes for Indian Navy as well as Indian Coast Guard.
The Defence business is also poised to grow as the Government of India has ambitious plans to spend on the country’s defence especially in the naval segments. This will also augur well for Triveni to achieve growth in the medium to long term.
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