Rise of India Power Tools Industry in Various Segments |...

Rise of India Power Tools Industry in Various Segments

Posted 2024-02-19 10:27:59

The power tools industry in India has witnessed tremendous growth in the past decade with increased usage across various sectors of the economy. Power tools which includes drills, grinders, saws and other machinery have made industrial and construction processes more efficient while reducing manual labor requirements. With rising infrastructure development and focus on 'Make in India', the demand for power tools in India is expected to further rise in the coming years.

Early Growth and Challenges

Power tools were initially seen only in large industrial settings in India but have now penetrated the retail market as well. In the early 2000s, few brands dominated the market with expensive imported products catering to niche customers. Lack of localized manufacturing meant higher costs which limited widespread adoption. Several Indian companies started assembling power tools in late 2000s with some components still imported. This helped lower prices to an extent but quality and reliability issues remained. Spurious products in the unorganized sector also marred the reputation of this industry during the initial growth phase.

Rise of Local Manufacturing

The big change happened in the last 5-7 years with many global power tool brands setting up local manufacturing facilities in India. Bosch, Milwaukee, Makita and others have major manufacturing plants with significant localization of components. This has addressed the critical issues of quality, reliability and pricing. Localization has also helped these brands customize their offerings as per the needs of Indian customers. For example, development of corded as well as lower power cordless tools suitable for small scale industries and households. Major Japanese brands like Hitachi Koki have also expanded their manufacturing networks in India.

Growing Domestic Production

Several new Indian companies have emerged as prominent players in the power tools segment. Companies like Stanley Black & Decker affiliated brands - Fahey and Precision, Atlas Copco owned branded - JCB Tools and Stihl affiliated Skil Tools have set benchmarks in design, production and delivery. These brands now dominantly cater to the large interior markets with nationwide distribution and retail networks. Localized customized tools suitable for masonry, carpentry and other uses are an important aspect of their success. Indian manufacturing of power tools has surpassed 150,000 units per month led by brands like BOSCH, Milwaukee and Makita.

Impact on Related Industries

India Power Tool is further fuelling growth of allied sectors in India. Local component manufacturing industries like motors, control electronics, batteries, blades, etc have emerged to cater to the needs of power tools OEMs. Several world-class component suppliers have production bases focused only for the power tools industry. Growth of power tools has also positively impacted demand for safety gear and consumables. Retail distribution channels for power tools have also expanded rapidly covering all major cities as well as interior regions of the country. Several exclusive power tool showrooms are delivering robust sales across India.

Gaining Momentum in Infrastructure Sector

With large infrastructure projects underway as part of the National Infrastructure Pipeline, demand from construction industry accounts for a major share of power tools market in India. Whether highways, airports, metro systems, pipelines or urban development – use of power tools has vastly enhanced output while ensuring safety of workers. Soil compaction, drilling, cutting, grinding are activities where performance, reliability and safety of power tools play a key role in scale and pace of infrastructure work. Several global construction giants actively track performance of different power tools brands for their diverse on-site needs. Local engineering industries have also embraced use of high precision power tools in manufacturing processes.

Rise of Cordless Technology

Cordless power tools industry has emerged as one of the fastest growing segments driven by advancements in lithium-ion batteries and motor control systems. Domestic usage has also increased multi-fold with users gradually adopting advanced cordless solutions for needs like carpentry, plumbing, gardening among others. Leading brands pack high power and endurance in compact cordless tools suitable for Indian work conditions. In fact, someJapanese brands have established India as export base for their global cordless power tools markets. Availability of compatible interchangeable batteries and accessories have made cordless the preferred choice for professionals as well as households in the country.

Future Outlook

As India's industrial and infrastructural growth gains further momentum in coming years, power tools industry is well positioned for sustained high growth. Local manufacturing will continue to attract global brands with 'Make in India' initiatives and vendor base development. Customized products and price points will expand market penetration into rural and urban household usage for DIY (do-it-yourself) jobs. Increased after-sales services, financing options and subscription basedtool usage models will strengthen retail markets. Emerging areas of focus for OEMs could include corded-cordless hybrid systems, AI integrated tools and battery innovations like fast charging technology. With strong fundamentals, India's power tools market is expected tocross annual sales of over 500,000 units in the next 3-5 years.