작성일자: 2013.7.29

작성자: 뉴델리 무역관 김상환 (kimsh@kotra.or.kr)

 

 

1. 시장동향

 

□ Valves market

 

 ○ It is usually a small but critical support devise that is omnipresent because it is a must for operation and control of all big devices and processes – valves. Putting the spotlight on this important sector whose presence is felt from a small tap to a nuclear power plant and is also a major contributor to the Indian economy.

 

 ○ A few years back, the Indian industry considered importing valves for critical applications. What was available here was not suitable for the most demanding applications. Valve deliveries were the highest - often even more or in line with the process equipment or the utility.

 

 ○ Valve companies increasingly focused on the standard valves - Gate, globe, check variety. Specialized valves had limited market. Valve selection was a painstaking process - often required the engineer not only to see what is right for the application but also take into account the availability factor.

 

□ The Present Scenario

 

 ○ But now, the valves industry in India has come a long way from its modest beginnings. The Indian valve manufacturers have turned global. India is the most upcoming valve manufacturing hub for quality valves. Valve production in India comes from both the organized and unorganized sector. As per the Current statistics, more than 95% of these are in the micro, small and medium enterprise (MSME) category.

 

 ○ The Indian valve industry is categorized into two sectors: one is the domestic application valves and the other is the industrial valves. There is stiff competition in the domestic valves segment as a majority of the players are in the unorganized sector. These companies are able to manufacture small range of valves that are of decent quality with ease. Also, valves from other countries are easily available in the market. The quality requirement in the industrial valves segment is quite stringent. Hence, there are a few major valve manufacturers who are actively playing a role in the sector. The sector again faces stiff competition from companies in the unorganized sector who are using substandard products and selling them at a lower price.

 

 ○ With projects getting bigger and bigger, it will put a demand on valve manufacturers whose presence is felt across sectors and industries. The market is large enough to offer opportunities to all manufacturers irrespective of the size of their operations. The quality of Indian valves is, by and large, acceptable to domestic users depending on the service and application. However, large organizations in key sectors have strict buying criteria where the best brands are purchased after a complete techno-commercial scrutiny of offers depending on the criticality of the application.

 

 ○ Valves are also imported from other countries. The import is largely for precision type of valves mainly used in process industries like Pharma, Food processing, steel, and chemical and refineries.  Valve production in India does not have immense opportunities for foreign investment.  This is due to the fact that the replacement market in India is mostly catered by unorganized or mid-size valve manufacturers. However, current industrial developments in the steel industry and oil & gas explorations will certainly promote foreign collaborations in technology.

 

 ○ Key Statistics

 

Source: CMIE

 

 

2. 수입 통계자료

 

□ Import Statistics

 

HS Code 848180

(Unit: US$ Million, %)

Rank	Country	Value			Share			Change
		2011	2012	2013	2011	2012	2013	13/12
-	World	141,240,284	225,526,034	165,353,870	100.00	100.00	100.00	-26.68
1	China	27,710,879	35,409,114	29,427,788	19.62	15.70	17.80	-16.89
2	Germany	21,951,279	28,209,641	28,980,772	15.54	12.51	17.53	2.73
3	United States	14,496,453	27,645,022	18,158,477	10.26	12.26	10.98	-34.32
4	Japan	15,956,312	19,987,357	13,911,250	11.30	8.86	8.41	-30.40
5	Italy	17,062,528	36,920,012	13,298,849	12.08	16.37	8.04	-63.98
6	United Kingdom	5,015,374	11,308,413	10,007,747	3.55	5.01	6.05	-11.50
7	Switzerland	2,269,509	3,185,259	9,340,116	1.61	1.41	5.65	193.23
8	France	4,870,406	15,791,998	6,267,662	3.45	7.00	3.79	-60.31
9	Korea, South	7,528,014	10,738,315	6,001,535	5.33	4.76	3.63	-44.11
10	Thailand	3,268,717	3,851,975	4,858,184	2.31	1.71	2.94	26.12
11	Netherlands	1,649,354	2,356,309	3,018,378	1.17	1.04	1.83	28.10
12	Denmark	1,299,405	1,294,535	2,575,395	0.92	0.57	1.56	98.94
13	Spain	1,696,778	8,174,676	2,488,150	1.20	3.62	1.50	-69.56
14	Sweden	1,555,036	1,373,355	2,091,510	1.10	0.61	1.26	52.29

Note: The above data is till March 2013.

Source: DGCI&S, Ministry of Commerce

 

 

3. 성장 & 기회 요인

 

□ Growth of Indian valve market is dependent on the growth of other Industries such as Infrastructure, Electric Power, Gas, Oil, Refinery, Chemical, Pharmaceuticals, Petroleum, Urban Construction , food and beverages etc., because it is in these Industries that Valves find widespread applications. And with lucrative market prospects cramming these industrial sectors in recent years, the Industrial Valves market in India has also been on rise. Key factors associated with growing economy, increasing middle class (prosperity and spending), rapid urbanization, and expanding infrastructure needs are also expected to translate into growth. Banking on such growth factors, the overall market for pumps, valves and compressors is expected to grow at a compound annual growth rate (CAGR) of 15.0~17.0% over the period FY 2011-2015.Due to this sudden upsurge, a large number of MNCs are penetrating into the Indian market to tap the various growth avenues that have surfaced in the country.

 

□ The Central Electricity Authority(CEA) has plans to add 100,000 Mw in power generation capacity during the 12th plan. Small valve manufacturers gear up for explosive demand growth by focusing on expanding their manufacturing capacities and upgrading technologies. (Majority Valve manufacturers fall into MSME category)

 

□ The demand for high-quality industrial valves is growing. There is demand from across all sectors, including oil and gas, energy, water, waste water and infrastructure development.

 

□ Control Valve Growth in India

 

 ○ India is seeing process industries, such as chemical, oil and gas, power, refining, and others that extensively use control valves, expanding. As demand grows, global competitors such as Azbil, CCI, Emerson, Flowserve, and others have established facilities for manufacturing, engineering,

sourcing, and marketing of control valves in India.

 

 ○ Control valve market is too seeing a shift towards the cage design valves, which have better features. India has a number of world class control valve manufacturers. Companies now are looking at complete solutions - like, temperature control with ramp and dwell and are in-fact offering the complete control loop package.

 

 ○ The planning commission's infrastructure-related investment projection for the 11th five-year plan of INR 20,271.0 billion and its impact on the growth of heavy industries is expected to spur the growth of valves over the next couple of years. Oil and gas-Upstream, Midstream and downstream, Power generation projects are expected to bode well for growth of valves market.

 

 ○ As Per The Industry Sources, some of the most popular types of mechanical valves used in multiple industries are; Ball valves, Check Valves, Gate Valves, Globe Valves, Butterfly Valves, Diaphragm Valves, Pinch Valves, Plus Valves, Needle Valves, Poppet Valves, Vacuum Delay Valves and Proportioning Valves.

 

 ○ To keep pace with changing times and needs, the valves industry should take several measures.

 

 ○ New technology has to be assimilated and assimilated fast. The industry has to ensure good quality at globally competitive prices. Top grade R&D and testing facilities will have to be established, while smaller players can go for a collaborative effort. Country and region specific solutions have to be evolved.

 

 ○ Newer valve technologies like piston valves are replacing conventional globe valves for applications in steam and other heating fluids. Conventional non return valves are being replaced by disc check valves as a much superior alternative. The On-Off valve market is seeing a shift from on-off ball valves to the latest piston actuated valves which are much more compact, and feature integral actuator.

 

 ○ Innovate on design - valves of the future will not only remain valves. Value added features are must. Look at integrating valves with other flow/control/piping equipment differentiate with value added features, design to improvise on the fugitive emissions and gland leaks – look at designing for the future.

 

 ○ The investment in manufacturing capability, as well as investment in quality systems & six- sigma etc. have greatly enhanced the competitiveness. More and more valve manufacturers are now looking at offerings like isolation valve audits & valve maintenance contracts. Increased emphasis on zero leak systems have ensured that the valve companies innovate in design and quality. A lot of the improvement is market driven. On-Off valve market should see a shift from stand alone valve and actuator combinations to integrated on-off valves in a larger variety and also for 3 -way diverting/mixing applications. Self acting controls are getting back into the scene with much improved designs and materials. Increasing energy (compressed air) costs are also forcing customers to opt for self acting controls.

 

 ○ Problem faced by Indian Valves Manufacturers can act as an Opportunity for Korean Companies. More than 60 per cent of the total cost of valve is material cost. If the cost of any input increases, the valve price will also increase. So Volatility in raw material prices and intense competition impedes the growth of Indian valve market. Thus, despite the booming market opportunities, the Indian valve industry is characterized by low profit margins, lack of innovation and problems relating to supply chain management, logistics and increasing raw material costs etc.

 

 ○ Latest developments in the valve industry

  - manufacturing technologies are improving and new technologies are emerging in the valve industry. Manufacturers are using latest manufacturing and testing equipment. The valve finish over the years has improved significantly. New low fugitive (emission) low noise special internals in exotic materials and new control systems like smart positioners are now used in India in large quantities.

 

 

4. 리스크 & 규제

 

 ○ Initially India relied more on Imports of Valves. But, Nowadays the Indian valve manufacturers have turned global. India is the most upcoming valve manufacturing hub for quality valves. Due to advancement in Technology more sophisticated and customized valves are manufactured. In the coming years India won’t rely on Imports at all.

 

 ○ At the macro level, the current global economic scenario presents is the most worrying risk factor, as a fall of the global economy into a double-dip recession can lead to a slower growth, which would translate into a contraction in the Infrastructure sector as a whole, as any economy is directly and indirectly related to global economy.

 

 

5. 수입 통계자료

 

□ Import Tariff

 

HS Code	848180
Item Description	Taps, Cocks, Valves and similar appliances for pipes, boiler shells, tanks, Vats or the like, including pressure-reducing valves and Thermostatically controlled valves ; other appliances
Total import Duty (%)	25.852%
Duty Structure	Basic Duty (BD): 7.5% Countervailing Duty (CVD): 12% Special CVD (SCVD): 4% Educational Cess (EC): 3%
Remarks	Additional Duty on Valves   All goods in 8481 80 41 or 8481 90 10   Also, the total import duty differs for the above two, from the rest and is 12.034% only     The item can be imported to India without any license. Except for those that fall under the HS Code- 8481 10 00, 8481 20 00, 8481 30 00 and 8481 40 00.   BIS License is applicable to them.   BIS License: Only required for valve fittings for compressed gas cylinder excluding liquefied petroleum gas cylinders ; Yoke type value connections for small medical gas cylinders; Valve fittings for gas cylinder valves for use with breathing apparatus; Valve fittings for use with liquefied petroleum gas cylinder of more than 5 litre water capacity: Pt 2 Valve fittings for newly manufactured LPG Cylinders; Valve fittings for use with liquefied petroleum gas cylinder up to and including 5 litre water capacity

 

 

6. 시장 내 주요 마켓 플레이어

 

□ Market Players-Indian Valves Market

 

 ○ The valve market, by and large, is shared by various manufacturers based on technology, manufacturing capacities, and brand name quality and price competitiveness. The world's best brands are also produced locally in the country through fully owned subsidiaries or joint ventures.
Like other countries India too has small manufacturers and almost all manufacturers have their own niche markets.

 

 ○ The Indian market for valves has traditionally been dominated by international companies. While a few home-grown companies like Kirloskar Brothers Limited(KBL) (pumps), L&T Audco (valves), and Bharat Heavy Electricals Ltd. (BHEL) (compressors) do figure in the list of top Indian manufacturer. In fact, L&T and BHEL are the two big players in the organized sector and together command nearly 50% of the market. The unorganized sector is fragmented with more than 1,000 companies manufacturing valves. Over the coming years, competition in the industry is only expected to get more intense, with many multinational companies setting up operations in India. Existing multinationals are investing in realigning themselves to aggressively target the burgeoning Indian markets.

 

□ BHEL

 

 

 ○ BHEL is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies in India in terms of turnover. BHEL was established in 1964.

 

 ○ The high level of quality & reliability of its products is due to adherence to international standards by acquiring and adapting some of the best technologies from leading companies in the world including General Electric Company, Alstom SA, Siemens AG and Mitsubishi Heavy Industries Ltd.

 

 ○ BHEL has a share of around 59% in India's total installed generating capacity contributing 69% (approx.) to the total power generated from utility sets (excluding non-conventional capacity) as of March 31, 2012.

 

 ○ Valves offered by BHEL are;

  - Gate, Globe and non-return valves: Cast steel, Forge

 

 

  - Safety Relief valves

  - Safety Valves

 

□ Larsen & Toubro Limited (L&T)

 

 

 ○ Larsen & Toubro Limited(L&T) is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India's private sector.

 

 ○ Audco India Limited(AIL), an associate company of L&T, is one of the largest integrated valve manufacturers in the world, jointly owned by Larsen &Toubro Limited(L&T) in India and Flowserve Corporation, USA. AIL’s manufacturing operations commenced in 1962 and over last four decades the company is catering to the needs of the domestic and international markets. Also, Larsen & Toubro (Jiangsu) Valve Company Limited is a joint venture established by L&T in the People's Republic of China exclusively for the manufacture of L&T Valves.

 

 ○ The company leverages its world-class capabilities in Design, Quality Assurance and Manufacturing to ensure that their products consistently meet customer expectations in terms of quality and reliability.

 

 ○ Larsen & Toubro(L&T) is a leading supplier of industrial valves and customized solutions for oil & gas, refinery, petrochemical, chemical, power and infrastructure projects in India.

 

 ○ Valves offered by L&T are :

 

 

  - Gate, Globe & Check Valves

  - Process Ball Valves

  - Pipeline Ball Valves

  - Triple–offset Butterfly Valves

  - Wafer-type & Flanged Butterfly Valves

  - Plug Valves

 

□ Customer’s Valves Expectations:

   (From Industry Sources)