SMT equipment market in India witnesses steady growth

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Surface mount technology (SMT) equipment is constantly evolving due to the advances in technology and the miniaturisation of electronic components. Over the years, there has also been a substantial change in the manufacturing processes in the electronics sector, which had led to the growing demand for high speed machines. The SMT equipment market in India is witnessing steady growth fuelled by the demand from various end user sectors such as communications, consumer durables, industrial production, automotive and medical electronics—areas in which the use of electronics has been on the rise.

By Srabani Sen

Wednesday, February 2, 2011:
According to N Chandramohan, country head (SMT division), Juki India Pvt Ltd, about 350 machines, which includes both new machines and second hand machines, are sold in India every year. However, SP Arora, senior business manager, NMTronics India Pvt Ltd, says, “It’s difficult to give a precise figure, as there is no independent data available on the industry. As per our estimates, in 2010, the Indian SMT market was worth around US$ 27 million.”

Growth rate from 2009 to 2010

The year 2010 was a better year for the SMT machine sector as 50 per cent more machines were sold when compared to recession hit 2009. Going by industry estimates, the growth rate of the SMT equipment market is about 30 per cent. “As manufacturing starts increasing in India, the market will start rapidly growing by 50 per cent. It also depends on the government initiatives to restrict Chinese imports and encourage domestic manufacturing,” says Chandramohan.

Suresh Nair, director, sales and marketing, Leaptech Corporation, also feels that growth could be above 30 per cent, “…since many purchase decisions which were on hold during 2009 have matured in 2010.”

A Frost & Sullivan report on the Indian SMT scenario shows that the market earned revenues of Rs 2.68 billion in 2008 and estimates this will reach Rs 44.15 billion in 2012.

“We are receiving enquiries from small, medium and large potential customers, while our existing customers are also in the process of augmenting their production capacity by adding more lines or machines. I believe the next five years will be excellent for the SMT market in India, which has started to grow in real terms. Industries like consumer electronics, electronics manufacturing services, automotive electronics, etc, are expected to drive this growth,” adds Suresh Nair.

Telecom and automotive sectors are the industries that are creating the most demand for SMT equipment. The mobile revolution and the increasing attractiveness of technologies such as WiMax and VOIP is necessitating the indigenous manufacture of various telecom products such as handsets, base stations, modems and VOIP phones, thus, raising the hopes of the SMT equipment manufacturers and suppliers.

Electronics Bazaar, South Asia’s No. 1 electronics B2B sourcing magazine

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