January 4, 2021
India’s Manufacturing PMI continues to remain quite strong, registering 56.3 for November. The YOY index of industrial production jumped from plus-0.5 in September to plus-3.6 in October, illustrating a robust increase in manufacturing activity. In addition to $3 billion in government subsidies to foster the electric vehicle (EV) industry, numerous new investments have been announced in the energy (solar, wind, natural gas), aerospace, electric scooter, and furniture sectors. For more industry intel and other tidbits, read on.
The India economy is projected to rebound strongly in 2021 with GDP growth projected to be around 9%.
Last month’s announced government PLI scheme and thrust toward EVs is powering up lithium-ion cell manufacturing. The package of around $3 billion in subsidies is attracting a lot of interest. Companies like Tata Chemicals and Exide & Amara Raja are planning to diversify and start manufacturing li-ion cells. These cells are considered the heart of electric vehicles and presently are imported from China and other foreign sources.
FCA is investing $150 million to set up a global digital hub in Hyderabad.
OLA Electric is investing $350 million to set up the world’s largest e-scooter factory in Hosur, Tamilnadu.
The Tamilnadu government signed $3.3 billion worth of Memorandums of Understanding (MOU) for 24 new projects in the state. Some of the major investing companies are:
U.S.-based First Solar is investing $575 million for a solar module manufacturing facility.
Voltas Limited is investing $135 million for setting up a new plant.
The Crown Group is investing $350 million to set up an aerospace cluster park for the manufacture of flight components, subsystems, and drones.
U.S.-based Mylan Industries is investing $50 million to set up an injection manufacturing unit.
Gurit India is investing $45 million for a windmill blade manufacturing unit.
TVS Srichakara is investing $137 million to expand capacity at their Madurai and Pantnagar-based tire manufacturing plants.
Ikea is investing $850 million to expand their plant in Maharashtra.
Hindalco is investing $100 million to set up a new aluminum extrusion plant in Silvassa.
Japan’s Fuji Electric is expanding their manufacturing and R&D operations in India. They presently have manufacturing plants in Pune and Chennai where they manufacture variable frequency drives (VFD), and UPS and solar inverters.
India will see investments of about $66 billion over the next few years to expand its natural gas infrastructure as the government pushes for greater use of cleaner fuel with a goal of cutting down carbon emissions. One example is Torrent Gas, who is investing $700 million to set up infrastructure for the retail distribution of CNG in Chennai.
For more information, contact Arun Mahajan (AMahajan@AMTonline.org)