Metalworking in conversation with Mr. D M Sheregar, President, TAGMA India

What is the current market scenario in India for the Die and Mould Industry?

The tooling industry plays a critical role in the manufacturing value chain by providing dies and moulds needed for mass production of various parts and thereby forms the backbone of industrial growth. As per the latest Indian Tooling Report compiled by TAGMA India and Nomura Research Institute Ltd., the market size of the Indian tooling industry stands at ~INR 18,000 Cr, with more than half of the total demand attributed to the automotive and auto components sector. Most major global auto manufacturing hubs have a strong domestic tooling industry, with India being a notable exception, where a significant portion of tool demand is still met via imports.

With the increase in the variety of products and shortening product life cycles across the globe, worldwide demand for tooling is well poised to grow significantly in the future. Countries with superior capabilities and capacities in tooling will be at an advantage. Hence, it becomes even more important to facilitate the growth of Indian tool makers and enable access to new customers beyond national borders. Tooling localization would also result in many economic benefits such as employment creation, development of indigenous machine makers, better R&D landscape, and more efficient supply chains. Therefore, the time is ripe is to deep dive into the hurdles to the growth of Indian tool makers and the measures required to tackle these hurdles.

How has the pandemic affected the Die and Mould industry?

Pandemic was challenging for businesses and has impacted our personal and professional lives. It was definitely challenging during the first and second lockdown. We had manpower shortages, raw material supplies were disrupted, and we all had to shut down factories, which was unimaginable. However, since then, the business has picked up. Toolmakers play a big role in the product development stage as none of the products can be made without tools. For example, our biggest customer, the automotive industry, was coming up with many launches. Toolmakers’ business was not that affected.

However, the pandemic has helped us in many senses. It has taught us that going digital is no more an option but a compulsion. For a long time, industry 4.0 and smart manufacturing were a buzzword now; the time has come to make it a reality. We must adopt futuristic technologies to be able to compete globally. Also, skill development is of utmost importance in our industry, and many companies invest good time and effort in skill development during lockdowns.

Do you think the pandemic has adversely impacted the importance of tradeshows for companies?

One of the biggest impacted industries because of the pandemic was the exhibition industry, apart from hospitality and airlines. Because of lockdowns and the safety of the people, large gatherings were shut around the world, and the exhibition industry came to a standstill. However, in our industry or any b2b business, the exhibition is still the most important marketing platform to demonstrate your capabilities and meet new customers. Of course, digital solutions such as webinars and virtual expos are catching up, but the physical exhibition has its advantage, and it’s here to stay. We are very much looking forward to the upcoming Die Mould India show.

Can you describe the growth of the Indian die and mould industry over the past decade?

The growth of the die mould industry is highly dependent on the growth of the manufacturing industry. We all know how the Indian manufacturing industry has performed for the last ten years. Since the last decade, we feel the industry has been growing double-digit and will continue to grow in the coming years. The tooling industry around the world depends on the automotive industry. The Indian automotive industry has grown to become one of the largest in the world in all segments. The growth has positively impacted the tooling business in India. Apart from this, we are seeing the emergence of many sectors in India such as aerospace, defense, white goods, consumer durables, packaging, medical equipment, railways, and others that will directly impact the tooling business.

What is the role of TAGMA in the growth of the Die and Mould industry in India?

Since its inception, TAGMA has been a voice for the Indian tooling fraternity. We provide platforms such as Die Mould India, International Tooling Summit, and ToolTech to help toolmakers showcase their capabilities to potential customers, otherwise difficult for the small toolmakers.

We share the challenges of toolmakers with the government and policymakers to come up with favorable policies.

TAGMA also helps companies in skill development with their various skill development initiatives. By TAGMA Times newsletter, we keep our toolmakers updated with the latest happenings in the world. We also help overseas companies or OEMs connect with Indian toolmakers to explore business opportunities.

What challenges are the Die and Mould companies facing today, and how does TAGMA help these companies resolve these challenges?

There are currently six major obstacles that are impeding the growth of Indian tool rooms:

• Indian tool makers face many challenges to easy access to finance.
• It is observed that the import duty on the tools is lower than the import duty on the raw materials and bought-out components used in manufacturing these tools.
• Duty-free moulds imports from certain countries such as S Korea
• Toolmakers in other countries receive state-sponsored incentives to explore export markets, but that is not the case in India.
• In India, there is a severe lack of skilled workforce available for employment in tool rooms
• Lack of outsourcing ecosystem

As you see, most of these challenges are related to the policies. We act as a voice for the Indian tooling fraternity, as I said before. We closely work with policymakers and share the challenges mentioned above with them to develop a friendly framework. In my opinion, we are among the best when it comes to making tools, but we need some policy support from the government to grab the bigger opportunities and reduce imports.

 

What would be the key highlights of the 12th Die & Mould India International Exhibition?

First, the exhibition is happening after a gap of four years, and exhibitors and visitors are eagerly waiting for the show. Thus we are very much confident about the success of the show. Some of the highlights would be:

• Over 50 delegations from the OEMs and Public sectors
• Latest technology on display such as additive manufacturing, integrated CAD/CAM software, multi-axis CNC machines, latest injection moulding machines, and industry4.0 solutions
• Over 15 user industry associations to explore business opportunities with toolmakers
• B2B pavilion for buyer and seller meet

What is your message for the exhibitors and visitors of the 12th Die & Mould India International Exhibition?

To the exhibitors: This decade belongs to India. We are going to witness exceptional growth in the manufacturing industry. I see the tooling demand to grow in the coming days. I request you showcase your best-in-class technologies and capabilities at the upcoming DMI exhibition and make the most of the show.

To the visitors: Indian toolmakers have come a long way and can provide any tooling solution that is fast and cost-effective. Make sure you visit all the stalls and get first-hand experience of the latest technologies.