April 20, 2024

Empowering Progress: The Thriving Power Tool Industry in India and the Momentum of ‘Make in India’ Initiatives for Sustainable Growth and Innovation

Power Tool Industry in India is Gaining Momentum

The power tool industry in India has seen tremendous growth over the last decade, gaining popularity among both professional users as well as DIY enthusiasts. The increased domestic demand as well as ‘Make in India’ initiative has propelled many international brands to either set up manufacturing bases in India or partner with local manufacturers. Let’s take a look at some of the key aspects of the power tool industry in the country.

Rising Demand

According to recent reports, the power tools market in India reached a valuation of over $1 billion in 2020 and is projected to cross $2 billion by 2025, growing at a CAGR of over 10%. This strong growth can be attributed to factors like rapid urbanization, growth in construction and infrastructure projects, rising disposable incomes, and increased adoption of power tools in do-it-yourself (DIY) activities. Power tools are also gaining popularity as a viable career option with skills training programs being offered across the country.

While traditional sectors like construction and woodworking have been the dominant end-users, other industries like automotive, aerospace, and electronics are also increasingly adopting power tools for machining, assembly and quality control activities. On the consumer side, power tools are being purchased for applications like plumbing, electrical work, vehicle repair, gardening, and general household repairs. This diverse demand across sectors has made the Indian market highly attractive for global power tool companies.

Popular Categories

Some of the power tool categories that are leading this growth in India are:

– Cordless power tools: Led by brands like Bosch, Makita and Milwaukee, the cordless power tool segment has gained immense popularity due to convenience of use and versatility. Drills, impact wrenches and saws are most commonly used cordless tools across industries as well as individual users.

– Woodworking tools: Tools for woodworking like circular saws, jigsaws, planers and sanders have found widespread use among carpentry professionals as well as hobbyist woodworkers. Both corded and cordless variants are available.

– Rotary tools and accessories: Dremel-like rotary tools along with accessories like cut-off wheels, sanding bands and grinding stones are used extensively in metalworking, automotive repair, and craft applications.

– Metalworking tools: Various types of grinders, angle grinders, die grinders and cut-off machines are commonly used by welders, fitters and metal fabricators for grinding, cutting and finishing ferrous and non-ferrous metals.

– Lawn and garden tools: Equipment like lawnmowers, brush cutters, hedge trimmers and chainsaws have become indispensable for gardening and landscaping work across towns and cities. Both electric corded and gasoline powered variants exist.

Made in India Initiatives

To cater to the growing demand, most leading global power tool brands like Bosch, Makita, Stanley Black & Decker and Techtronic Industries (TTI) have set up local manufacturing bases in India over the past 5-7 years. This ‘Make in India’ strategy helps these companies export as well as directly serve the large domestic market, generating employment in the process.

Some of the key manufacturing initiatives include:

– Bosch has two power tools manufacturing facilities in Bengaluru and Naganathapura near Kolar producing a wide range of core cutting, drilling, sanding and workshop equipment. Annual production capacity is over 2 million units.

– Stanley Black & Decker inaugurated a new manufacturing plant near Chennai in 2018. Products like measuring tools, hand tools and power tools are produced here for local as well as export markets.

– German brand Metabo HPT has a manufacturing unit in Ahmedabad producing corded and cordless tools including grinders, jigsaws and circular saws.

– Milwaukee Tools (owned by TTI) manufactures M18 Fuel and M12 battery systems and lithium-ion batteries in India to directly serve the rapidly growing cordless tools market.

– Homegrown brands like Kapoor Tools and Machines and Prasumi have come a long way from importing to indigenously manufacturing a variety of woodworking, metalworking and masonry tools in India.

Local manufacturing is essential to make power tools accessible at affordable price points to individual consumers as well as small businesses, further fueling market growth. Several newer players are also emerging in related areas like power tool batteries, charging systems and spare parts.

Future Prospects

Experts see immense potential in power tools in India going forward, especially with government’s focus on infrastructure development and housing construction. Growth in ownership of power tools among carpenters, electricians, plumbers and small fabricators could increase productivity and skill levels. There are also opportunities in related sectors like tool storage, protection and safety equipment, technical training courses, tool rental services and e-commerce marketplace for power tools.

With rising demand from multiple industries as well as individual users, focused manufacturing initiatives and availability of a wide product range at competitive costs, the power tool market in India seems poised for sustained growth in the long run, further strengthening domestic as well as global stature of the country as a manufacturing destination. Increased access to financing options and skills training programs could also help realize its full potential in the years to come.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it