SHEET METAL INDUSTRY IN

SAARC COUNTRIES
Sajith S
+91 99860 64804
sajisuren@hotmail.com

Page 1 of 50

Table of Contents
SHEET METAL INDUSTRY IN SAARC COUNTRIES ..................................................................................... 1
EXECUTIVE SUMMARY ............................................................................................................................ 4
OBJECTIVE OF STUDY .......................................................................................................................... 4
METHODOLOGY .................................................................................................................................. 4
HIGHLIGHTS ........................................................................................................................................ 4
CHAPTER 1

- SHEET METAL INDUSTRY INDIA, BANGLADESH & SRILANKA ..................................... 6

BACKGROUND..................................................................................................................................... 6
FOIL, SHEET & PLATE....................................................................................................................... 7
APPLICATION OF SHEET METAL INDUSTRIES...................................................................................... 8
NEW TRENDS OF SHEET METAL APPLICATION ............................................................................... 8
CHAPTER 2 - SHEET METAL WORLD IS TURNING TOWARDS ASIA.......................................................11
PER CAPITA CONSUMPTION OF STEEL..........................................................................................15
CHAPTER 3 SHEET METAL FORMING MACHINE MACHINES ..............................................................20
SHEET METAL FORMING ...............................................................................................................20
FEW SAMPLES OF COMPONENTS MADE BY PRESSES.......................................................................22
SAMPLES COMPONENTS MADE BY PRESS BRAKE ........................................................................23
CHAPTER 4 - INDIAN SCENARIO ............................................................................................................24
MACHINE TOOL INDUSTRY ...................................................................................................................24
GROWTH OF INDIAN SHEET METAL FORMING INDUSTRY ...............................................................26
CONSUMPTION OF METAL FORMING MACHINES ........................................................................26
STATISTICS OF METAL FORMING MACHINES........................................................................................28
CHAPTER 5 BUSINESS POTENTIAL IN INDIA - POWER PRESSES ..........................................................28
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BUSINESS POTENTIAL IN INDIA - HYDRAULIC PRESS BRAKE..........................................................29

BUSINESS POTENTIAL OF INDIA - HYDRAULIC SHEAR.......................................................................30
CHAPTER 6: BANGLADESH SHEET METAL INDUSTRY...........................................................................31
INFRASTRUCTURE DEVELOPMENT WILL BE A GAME CHANGER ......................................................31
HIGHLIGHTS OF LIGHT ENGINEERING INDUSTRY OF BANGLADESH .............................................32
INDUSTRY SITUATION ...................................................................................................................32
GROWTH POTENTIAL ....................................................................................................................34
MAJOR IMPORT COMMODITIES OF BANGLADESH...........................................................................35
CHAPTER 7: SRI LANKAN SHEET METAL INDUSTRY...............................................................................36
GENERAL STATISTICS YEAR 2015....................................................................................................43
CHAPTER 8: EMERGING TECHNOLOGY IN SHEET METAL INDUSTRY FIBER LASER CUTTING MACHINE
..............................................................................................................................................................44
PRODUCT LIFE CYCLE OF FIBRE LASER ..............................................................................................45
MARKET SIZE OF LASER CUTTING MACHINE IN INDIA......................................................................46
REASONS AS TO WHY FIBER LASER IS PICKING UP IN THE MARKET .................................................46
CONCLUSION.........................................................................................................................................48
POTENTIAL ........................................................................................................................................48
LIMITATION .......................................................................................................................................48
Couldnt collect the exact data / number of machines imported to Bangladesh & Sri Lanka. The
data of both the countries for last 2 years are costing around Euro 5000......................................48
CHALLENGES .....................................................................................................................................48
WHAT HACO SHOULD DO .................................................................................................................48
CHANGES IN CURRENT FACILITY .......................................................................................................49
FINANCIAL ARRANGEMENT ..........................................................................................................49

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EXECUTIVE SUMMARY
Globalisation & Technology are becoming the fundamental of any activity. Growth potential is
tremendously improving. ASIA is the present & future of the world. China, India, Japan, Korea,
Singapore etc are stimulating economies of the current business world.

STEEL is the fundamental for any growth of country and world. And sheet metal is going to cross the
50% share of the total steel consumption.

ASIA consumes over 68% of the total steel production in the world. Its interesting and essential to
study about the market development of Steel & Sheet Metal

OBJECTIVE OF STUDY
Objective of this report is
1. To understand the growing opportunities in the Sheet Metal Industry, of 3 important SAARC
Countries like India, Bangladesh & Sri Lanka.
2. To understand the market potential of Fibre Laser Cutting Machine, which is the
Emerging Technology of the world in sheet metal based products forming industry. And
try to develop and promote 500 to 1200 W Fiber Laser Machines for ASIA, specially for
India
Based on the above, we would like to develop the future strategy of HACO Business in these
countries.

METHODOLOGY
The researcher, who has undertaken this project study, already has hands on working experience in
the sheet metal industry for over 12 years.

The researcher also has also been interacting with relevant industrial associations, and with many
successful entrepreneurs and senior managers who are in this field for over 15 years. The following
methods were used to collect the data and analyse them.
a. Secondary Data from various Industries associations in the form of special studies, annual
reports
b. Secondary Data obtained from Import and Export website oriented Co / Industry websites

HIGHLIGHTS

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Business in SAARC countries is going to grow substantially, for companies involved in sheet metal
industries suppliers and service organisations involved in machinery and machine tools, consequent
to big push in infrastructure industries, industrial and consumer durable items, especially in India,
Bangladesh and also in Sri Lanka. Emergence of Fiber Laser Machinery is an important segment to
consider. This Project Report attempts to gives more clarity on these aspects, and also why and how
the companies like HACO should focus more on business in this region, including promotion of 500
to 1000W Fiber Laser Cutting Machines.

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CHAPTER 1
SHEET METAL INDUSTRY INDIA,
BANGLADESH & SRILANKA
BACKGROUND
Sheet Metal is thin metal sheet, formed by an industrial process. The term Sheet Metal Refers to metal
that has high SURFACE AREA to VOLUME RATIO. It can be cut, bent / formed into variety of
shapes and after providing different kind of holes / profile cuts, it can be used for various applications,
which can be both seen as well unseen. Usually sheets are formed by rolling and it comes in the form
of coils. As its coming in Coil form, it may need some operations like, De- Coiling and Straightening
etc.

The history of Sheet Metal Working is in existence of 8000 BC. But last 3 decades has changed the
perception of sheet metal industry completely. Like any other metal working industry, Introduction of
CNC Machines, Laser Cutting Machines etc has made greater impact in the industry.

Modern sheet metal industry is really COMPLEX, at the same time FLEXIBLE. CNC Machine offers
high PRECISION & QUALITY products. This helps in better INTEGRATION of Complex
Components with increased PRODUCTIVITY & DURABILITY.

Basic Advantages of Sheet Metal Parts are:

1. High Strength
2. Good Dimensional Accuracy
3. Good Surface Finish
4. Relatively Low Cost
5. Possibility of Economical Mass Production

The usual materials used as Sheet Metal is CRCA, HR, SS, MS, Aluminium etc. Also use Titanium,
specialised Aluminium etc for specialised application like, aviation.
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FOIL, SHEET & PLATE

Plate and sheet are words used to describe the classification of metal depending upon its thickness.
While sheet metal is less than 3 mm thick, plate metal is obviously thicker than 3 mm. Foil is
0.15mm to 0.01mm

Plate is generally used for larger structural parts like boilers, turbines, bridges and ships. Sheet metal
is used in the manufacture of cars, trains, aircraft, farm equipment, office equipment, furniture, house
appliances, computers, machine components and beverage cans to name a few.

SCOPE OF SHEET METAL INDUSTRY

Sheet metal can be used in the following areas:
1. Process Industries Chemical / Pharma etc
2. Clean Rooms
3. Electrical Control Panels
4. Switch Gear Industry
5. Modular Kitchen Equipment & Bakery Ovens
6. Food Processing Industries
7. Medical Equipment
8. Construction Equipment
9. Job Workers
10. Automobile
11. Aviation
12. AC & HVAC
13. Furniture & Doors
14. Retail Industry
15. Lifts & Elevators
16. Server Racks
And many more

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The process in sheet metal industry can be broadly classified into

OPERATION

MACHINERIES USED

CUTTING

Sawing, Shearing, Laser Cutting, Plasma Cutting, Water jet Cutting, CNC
Punch Press

FORMING

BENDING / DEEP Press Brakes, Mechanical Presses, CNC Punch Presses, Hydraulic Presses
DRAWING
ASSEMBLING

By Welding, Binding with Adhesives, riveting, threaded fasteners

PAINT Booth

Painting may or may not be required

APPLICATION OF SHEET METAL INDUSTRIES

NEW TRENDS OF SHEET METAL APPLICATION

Application of sheet metal is becoming extremely wide. One more trend is developing the usage of
Stainless Steel Material. Benefit is no corrosion, very long life, good aesthetic appeal, no maintenance
like painting etc.

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WATER SPOUT

MUMBAIS SEA LINK

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UTENSILS

SCULPTURE

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CHAPTER 2 - SHEET METAL WORLD IS TURNING TOWARDS

ASIA
Even though the world has faced lots of down turn across the globe in 2014, it has been another
record year for the steel industry. Crude steel production totalled 1,665 million tonnes (Mt), an
increase of 1% compared to 2013. 2014 also saw the emergence of a new phase in steel markets. But
in 2015 there was a down turn.
World crude steel production reached 1,622.8 million tonnes (Mt) for the year 2015, down by -2.8%
compared to 2014. Crude steel production decreased in all regions except Oceania in 2015.

SOURCE: - www.worldsteel.org/

In many years, the events in China dominated the steel industry. The evidence is that the steel industry
is now entering a period of pause before undoubtedly picking up again when markets other than China
drive new demand. Nobody can predict exactly when or where. Today, China represents around 48%
of the global market for steel. This will decline in years to come. The impact of urbanisation will have
a key role to play in the future. It is estimated that a little more than 1 billion people will move to
towns and cities between now and 2030. This major flow will create substantial new demand for steel
to be used in infrastructure developments such as water, energy and mass transit systems as well as
major construction and housing programmes.

Steel is a truly innovative material necessary for society to survive and advance. It is adaptable
enough to meet existing and future challenges and has evolved to meet the challenges of high speed
railway, high rise buildings, the revolution in automobile design, renewable energy and deep sea
marine applications.
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More and more today we want to maintain the strength of steel, but also want it to be light enough to
compete with alternative materials. Steel has been able to satisfy all of these demands and will
continue to do so into the future.

Perhaps the most important impact steel can have is at the heart of the circular economy, which
demands zero waste and reduced use of new materials as well as encouraging the reuse and recycling
of materials all fundamental advantages of using steel.
World Sheet Metal Industry is growing rapidly. The consumption of sheet metal industry is
completely shifting to ASIA. Over 65% of sheet metal consumption of the world is in ASIA.

Page 12 of 50

Overall 0.4% of growth is estimated in 2017

Page 13 of 50

The below table gives a very clear Idea as to why world is focusing on ASIA & OCEANIA. Also it
would be better to understand country wise consumption. China, India and Japan bear 1st four
Positions of the Top 10 Steel Users in the world

Out of the above data, whats the share for Sheet Metal Industry in the world? Look at the data below:

Product-wise Shares of Steel Demand Forecast

( as percentage of total consumption of finished carbon/mild steel )
2010-11

2016-17

2020-21

2025-26

2032-33

39.30

39.90

40.20

40.20

39.80

Structurals

9.00

7.60

6.80

5.80

4.20

Rly. Materials

1.80

1.30

1.00

0.80

0.40

50.10

48.80

47.90

46.80

44.50

7.70

7.00

6.50

5.90

4.90

21.00

20.90

20.70

20.40

19.40

CR coils/sheets (excl. double counting)

9.70

11.40

12.70

14.50

18.60

GP/GC

7.60

7.80

7.90

7.90

7.90

Electrical Sheets

0.80

0.80

0.80

0.80

0.80

Tin Plate/TFS

0.60

0.70

0.70

0.70

0.80

Pipes

2.50

2.70

2.80

3.00

3.20

Bars and Rods

Total Long Products

Plates
HR Coils/Skelp/Sheet (excl. double
counting)

Page 14 of 50

Total Flat Products

49.90

51.30

52.10

53.20

55.60

Total Carbon Steel

100.00

100.10

100.00

100.00

100.10

Source: Long Term Perspective for Indian Steel Industry By Dr A S Firoz, Chief Economist

Out of the total carbon steel consumption, over 50% consumption is going to be from sheet metal. At
the same time, it would be interesting to understand the consumption in tons.

Approximate

consumption of Sheet & Plate in 2014 is 211 million ton.

PER CAPITA CONSUMPTION OF STEEL

India consumes, 57kg, South Korea 1057kg, USA 300, China 515,

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Source: World Steel Association

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Now let us understand the potential of Sheet Metal Consumption alone. Asia consumes over 72%.
Table 20

Production of Sheet Metal & Plate Industry in ASIA

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

China

1,27,173.00

1,55,512.00

2,03,769.00

2,29,874.00

2,52,169.00

3,02,812.00

3,22,217.00

3,37,122.00

3,73,608.00

3,85,240.00

India

17,812.00

20,378.00

20,306.00

20,613.00

20,895.00

21,731.00

24,806.00

28,810.00

32,083.00

30,229.00

Indonesia

1,549.00

1,763.00

1,730.00

1,656.00

1,558.00

1,590.00

1,478.00

1,579.00

1,284.00

2,541.00

Japan

83,459.00

84,282.00

87,902.00

87,089.00

74,260.00

70,572.00

66,779.00

66,540.00

67,492.00

68,262.00

Korea

39,363.00

41,363.00

45,186.00

47,195.00

41,606.00

52,581.00

58,521.00

58,889.00

56,988.00

61,895.00

Malaysia

2,174.00

2,701.00

3,069.00

1,410.00

1,162.00

2,151.00

2,330.00

1,951.00

2,129.00

1,757.00

Philippines

1,904.00

2,381.00

1,209.00

975.00

1,985.00

2,133.00

1,799.00

1,986.00

1,613.00

Vietnam

450.00

600.00

723.00

904.00

979.00

1,196.00

1,478.00

1,642.00

2,205.00

2,774.00

China

9,089.00

9,557.00

7,942.00

8,637.00

6,900.00

8,826.00

9,236.00

9,563.00

10,198.00

10,323.00

Thailand

4,625.00

3,847.00

3,539.00

3,880.00

4,217.00

4,884.00

4,039.00

3,801.00

3,420.00

3,445.00

Asia

2,87,598.00

3,22,384.00

3,77,000.00

4,02,467.00

4,04,721.00

4,68,328.00

4,93,017.00

5,11,696.00

5,51,393.00

5,68,079.00

World

5,09,364.00

5,57,634.00

6,06,475.00

6,21,428.00

5,61,166.00

6,77,796.00

7,14,345.00

7,26,462.00

7,64,918.00

7,86,308.00

56.46

57.81

62.16

64.76

72.12

69.10

69.02

70.44

72.09

72.25

South

2,834.00

Taiwan,

The data is complied against Hot Rolled sheet >3mm, Hot Rolled Sheet <3mm, Metal Coated Sheet & Strip, Non Metallic Coated Sheet & Strip
* - Includes all qualities: carbon, stainless, and other alloy.
(1) - 2013 and 2014 figures are not necessarily comparable with earlier data.
Data are expressed in thousand metric tons unless stated otherwise.
Page 17 of 50

Zero indicates that the quantity concerned is less than 500 tonnes.
e indicates a figure that has been estimated by the World Steel
Association.
Totals comprise listed countries only. Trade data totals include intra-regional exports and imports.
Three dots (...) indicate that an item of information was not available.

Source: World Steel Association

Page 18 of 50

Out of 72% of the major sheet metal consumption of ASIA is given below

COUNTRY

% OF

GROWTH

CONTRIBUTION

RATE

China

68%

3%

Japan

12%

1%

S Korea

11%

8.6%

India

5.3%

9.4%

As per the study of Long Term Perspectives for Indian Steel Industry Dr. A.S.Firoz Chief
Economist, Product-wise Shares of Steel Demand Forecast ( as percentage of total consumption of
finished carbon/mild steel )

Year

2010-11

HR Coils/Skelp/Sheet (excl. 21.0

2016-17

2020- 21

2025- 26

2032- 33

20.9

20.7

20.4

19.4

11.4

12.7

14.5

18.6

double counting)
CR coils/sheets (excl. double 9.7
counting)
GP/GC

7.6

7.8

7.9

7.9

7.9

Electrical Sheets

0.8

0.8

0.8

0.8

0.8

Tin Plate/TFS

0.6

0.7

0.7

0.7

0.8

TOTAL %

42.20

44.30

45.60

47.30

50.70

The above data is comparing with Total Carbon Steel Consumption.

Which means, currently almost 44% of the total steel consumption of India is from Sheet Metal
Industry.
And to process all these sheets, the following machines are needed.

OPERATION

MACHINERIES USED

CUTTING

Sawing, Shearing, Laser Cutting, Plasma Cutting, Waterjet Cutting, CNC

Punch Press

FORMING
BENDING

/
/

DEEP Press Brakes, Mechanical Presses, CNC Punch Presses, Hydraulic Presses

DRAWING
ASSEMBLING

By Welding, Binding with Adhesives, riveting, threaded fasteners

PAINT Booth

Painting may or may not be required

Page 19 of 50

CHAPTER 3 SHEET METAL FORMING MACHINE MACHINES

HACO has many verticals to support operations for metals, details are mentioned below

SHEET METAL FORMING

o

Press Brake

- upto 320ton 3mts Assembled in India. Upto 2000 ton will be

manufactured from Europe

o

Shear

- upto 16mm 3mts Assembled in India. Above upto 32 ton

manufactured from Europe.

All the below machines needs to be imported from France, Germany or Belgium

Laser Cutting Machine

Punching Machines

Mechanical Presses

Hydraulic Presses

METAL CUTTING MACHINES

o

CNC Profilers

CNC Lathes

PAINT BOOTH

MACHINERIES FOR STRUCTURAL STEEL

WOOD WORKING

We will limit our study to Presses, Press Brake & Shear. Further considering that Fibre Laser is a
emerging technology we can discuss on the same as well

Page 20 of 50

HYDRAULIC SHEAR

This machine will cut the sheets. Such HACO machines are capable of cutting even paper to 32 mm.
Most of the time, this machine will do straight cutting. With some attachments, we can do angular
cutting also. But different contours, step cutting etc will not be possible.

POWER PRESSES

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Mechanical presses are used when the components are fixed and need high volumes. Hydraulic
Presses are used when there is a requirement of deep drawing application. Many variations are
considered like forging presses, Hammering or Die Stamping, Bending, Folding, Straightening,
Flattening etc.

FEW SAMPLES OF COMPONENTS MADE BY PRESSES

MECHANICAL PRESS SAMPLE

HYDRAULIC PRESS SAMPLE

HYDRAULIC PRESS BRAKE

This machine helps in bending of sheets at various capacities and angles.

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SAMPLES COMPONENTS MADE BY PRESS BRAKE

Many more examples like,

Modular Kitchens,
Enclosure of CPU
Enclosures of Generators
Light Poles
And much, much more

Page 23 of 50

CHAPTER 4 - INDIAN SCENARIO

MACHINE TOOL INDUSTRY

Consumption of India is approximately US $ 2200 Million and bears 10th Position in the industry of
world Machine Tool consumers

Source: Gardner Business Media, Inc.

Page 24 of 50

IMPORTERS OF MACHINE TOOLS

2015

(Millions of U.S. Dollars) Source: Gardner Business Media, Inc.

India bears 14th position and imports approximately US$ 890 Mill.

Imports:
Consumpti Consumpti
Country

Imports

on

on

8,600.0

27,500.0

31%

1.

China

2.

United States 4,506.0

7,361.0

61%

3.

Germany

2,730.8

6,360.8

43%

4.

Mexico

2,187.7

2,214.1

99%

5.

Russia

1,756.0

2,177.0

81%

6.

Italy

1,470.9

3,136.1

47%

7.

South Korea 1,407.0

3,823.0

37%

8.

Thailand

1,080.5

1,173.8

92%

9.

Turkey

1,031.0

1,278.0

81%

10.

Vietnam

960.0

969.9

99%

11.

Japan

940.5

5,804.5

16%

12.

Belgium

903.6

242.0

373%

13.

Canada

901.1

1,178.3

76%

14.

India

897.2

1,541.0

58%

15.

France

890.3

960.3

93%

United
16.

Kingdom

785.7

950.5

83%

17.

Indonesia

778.6

802.0

97%

18.

Hong Kong 744.0

144.0

517%

19.

Taiwan

720.0

1,564.0

46%

22.

Brazil

594.7

672.3

88%

28.

Saudi Arabia 330.0

330.0

100%

29.

Singapore

305.7

388.2

79%

35.

UAE

228.0

203.0

112%

59.

Ghana

14.4

14.4

100%

60.

Iran

0.0

0.0

Page 25 of 50

GROWTH OF INDIAN SHEET METAL FORMING INDUSTRY

Source: EXIM Bank Research

CONSUMPTION OF METAL FORMING MACHINES

Metal forming machine consumption in India has reached Rs.2205 Cr. during 2015-16 compared to
Rs.1357 Cr. during 2014-15 registering a Y-O-Y growth of 62%.

CONSUMPTION OF METAL FORMING MACHINES IN INDIA (VALUE RS.CR)

Source - http://www.imtma.in/index.php?page=3&subid=31

Page 26 of 50

METAL FORMING MACHINES PRODUCTION

Production of metal forming machines reached Rs. 507 Cr during 2015-16 compared to Rs. 450 Cr in
2014-15 registering a growth of 13 percent.

Production of Metal Forming Machine tools in India (Value Rs. Cr)

Source: http://www.imtma.in/index.php?page=3&subid=28

Page 27 of 50

STATISTICS OF METAL FORMING MACHINES

CHAPTER 5 BUSINESS POTENTIAL IN INDIA - POWER PRESSES

Source: zauba.com

Source: eximpulse.com

Page 28 of 50

BUSINESS POTENTIAL IN INDIA

HYDRAULIC PRESS BRAKE

Source: Zuaba.com

Source: Eximpulse.com

Page 29 of 50

BUSINESS POTENTIAL OF INDIA - HYDRAULIC SHEAR

Source: Zuaba.com

Source: Eximpulse.com

Page 30 of 50

CHAPTER 6: BANGLADESH SHEET METAL INDUSTRY

Although real GDP grew by about 7% in the fiscal year to June 2015, US$ exports underperformed
headline GDP, gaining just above 3% over the same period. Bangladesh expect exports to pick up in
2016 though, helped by stronger world trade, in particular stronger demand for textiles and garments
from the West. Moreover, although textiles and garments accounts for more than 80% of its exports,
the future is not just in clothing for Bangladesh. Seven out of the eight different goods sectors are set
to grow at a double digit pace from 2016-20; the only one growing slower is likely to be agriculture,
which largely reflects the economy upgrading.

https://globalconnections.hsbc.com/global/en/tools-data/trade-forecasts/bd
TOP 5 Hotlist Import Origins

2014
RANK

COUNTRY

SHARE

2030

China

18.8%

China

India

14.8%

India

Singapore

5.8%

Singapore

Indonesia

4.2%

Indonesia

*Ranking among the 24 trade partners covered in the HSBC Trade Forecast

INFRASTRUCTURE DEVELOPMENT WILL BE A GAME CHANGER

Government is focusing in infrastructure development. Developing & building port facilities, building
roads and high ways, sourcing of natural gas from both internal & external sources, power generation
etc. Around US $ 8 Billion has been allocated for the same. 4 lane road from Dhaka to Chittagong
Port is going to complete in 2016 . 3rd Sea Port in PAYRA is getting ready.

Page 31 of 50

http://www.tradingeconomics.com/bangladesh/gdp

Contribution of GDP is given below

Agriculture (18.64%)
Industry (28.61%) Industrial Growth rate is 8.39%
Service (52.76%)

HIGHLIGHTS OF LIGHT ENGINEERING INDUSTRY OF BANGLADESH

Increasingly affluent middle class creating demand for consumer durables.

About 40,000 small scale light engineering enterprises existing over the country.

Export-oriented production has experienced strong growth in past few years.

Currently about 10,000 types of different items are manufactured for the local industry.

As demand grows for engineering and electronic goods, so does demand for light engineering
products.

Government provides cash incentive facilities to exporters of value-added light engineering products.

INDUSTRY SITUATION
The light engineering industry in Bangladesh continues to grow each year. In 2015 -16 they have got
order for US $ 510 Million export orders. Most of these enterprises are located in and around Dhaka
metropolis. Entrepreneurs from China, Japan and Korea have taken advantage of Bangladesh's cheap
and easily trainable labour and its infrastructure facilities to manufacture products for the export
market.
Source: http://www.bdtradeinfo.com/business-investment/invest_sectors.php#light
Page 32 of 50

Steel Consumption is extremely negligible in Bangladesh (But, Average growth rate is around 10%)
& Sri Lanka (Growth rate is stagnant) and also is negligible.

Table 1

Total Production of Crude Steel *

2005

2006

2007

Bangladesh(e)

2008

2009

2010

2011

2012

2013

2014

50

70

78

85

87

84

90

China (1)

355790

421024

489712

512339

577070 638743 701968 731040

822000

822698

India

45 780

49 450

53 468

57 791

63 527

68976

73471

77264

81299

87292

Indonesia

3 675

3 759

4 160

3 915

3 501

3 664

3 621

2 254

2644

4 428

Japan

112471

116226

120203

118739

87534

109599 107601 107232

110595

110666

D.P.RKorea(e)

1 400

1 400

1 400

1 300

1 300

1 300

1 300

1 280

1250

1 250

South Korea

47 820

48 455

51 517

53 625

48 572

58 914

68 519

69 073

66 061

71 543

Malaysia

5 296

5 834

6 895

6 423

5 354

5 694

5 941

5 612

4693

4 316

Mongolia (e)

35

35

35

35

35

35

35

35

40

45

Myanmar (e)

25

25

25

25

25

25

25

25

30

35

Pakistan (e)

825

1 040

1 090

1 000

1 200

1 400

1 592

1 631

1845

2 423

Philippines

470

558

718

711

824

1 050

1 200

1 260

1308

1 196

Singapore

572

607

640

764

664

728

752

688

434

540

Sri Lanka (e)

30

30

30

30

30

30

30

30

30

30

Taiwan, China

18 942

20 000

20 903

19 882

15 814

19 755

20 178

20 664

22 282

23 221

Thailand

5 161

4 914

5 565

5 211

3 646

4 145

4 238

3 328

3579

4 095

Viet Nam

890

1 869

2 024

2 250

2 700

4 314

4 900

5 298

5474

5 847

Asia

599183

675226

758385

784090

811866 918449 995457 1026801 1123646 1139714

1
WORLD

975

147 1
098

250 1

348 1

108

429

343 1

238 1 433 1 538 1

755

433

003

560 1

131

354

650 1
145

* - Includes all qualities: carbon, stainless, and other alloy.

(1) - 2013 and 2014 figures are not necessarily comparable with earlier data.
Data are expressed in thousand metric tons unless stated otherwise.
Zero indicates that the quantity concerned is less than 500 tonnes.
e indicates a figure that has been estimated by the World Steel Association.
Totals comprise listed countries only. Trade data totals include intra-regional exports and
imports.
Three dots (...) indicate that an item of information was not available.
Source: World Steel Association

Page 33 of 50

670

Approximate market size of Bangladesh is USD 382 Million. Majority of the growth is due to the
spending of government in Infrastructure project, which contributes 40% of the total steel
consumption. Current capacity is around 4 Million Tonnes where as total capacity is approximately 8
million tonnes.

GROWTH POTENTIAL
According to study Bangladesh Steel Industry has been tripled during the year 2014-15. Production is
likely to be doubled by 2022. That means current per capita consumption is 25kg and its likely to be
50kg by 2022.

Source: www.lightcastlebd.com

Major contribution of Import happens by the following countries:

China 21.7%, India 16.3%, Malaysia 5.2%, Republic of Korea 4.5%, Japan 4.1% (2013
EST.)
Due to the special effort of Mr. Narendra Modis government, the export from India is going to be
better than Bangladesh.

Page 34 of 50

MAJOR IMPORT COMMODITIES OF BANGLADESH

Sl

Major

2001-

2002-

#.

Commodities

02

03

Rice

15

211

Edible oil

251

10

Crude petroleum

11

2003-04

2004-

2005-

2006-

2007-

2008-

2009-

2010-

2011-

2012-

05

06

07

08

09

10

11

12

13

144

262

117

180

874

239

75

830

288

30

364

471

441

473

583

1006

865

1050

1067

1644

1402

242

267

252

350

604

524

695

584

535

923

987

1102

POL

481

620

770

1252

1400

1709

2058

1997

2021

3186

3922

3642

12

Chemical

335

353

406

510

580

668

890

960

972

1254

1210

1302

14

Fertilizer

107

109

150

332

342

357

632

955

717

1241

1381

1188

16

Plastics and rubber

250

281

367

477

523

643

808

840

966

1302

1366

1366

articles thereof
17

Raw cotton

312

393

583

666

742

858

1212

1291

1439

2689

2084

2005

18

Yarn

283

270

323

393

501

582

691

792

718

1391

1384

1356

19

Textile and articles

1063

1106

1295

1571

1728

1892

1892

2099

1986

2680

3023

3273

413

455

479

680

980

985

1179

1502

1453

2004

2224

2335

562

568

786

1211

1539

1929

1664

1420

1595

2325

2005

1835

thereof
21

Iron,

steel

and

other base metals

22

Capital
machinery

23

Others

2858

3015

2959

2727

2887

3401

4385

5289

5862

7132

7889

6860

24

Sub total :

7913

8931

10016

1219

1368

1601

2033

2120

2232

3151

3340

3157

Imports of EPZ

627

727

887

952

1062

1144

1294

1302

1413

2141

2114

2505

Grand Total :

8540

9658

10903

1314

1474

1715

2162

2250

2373

3365

3551

3408

Amounts in Million US$

Source: Chamber of Commerce, Dhaka

Steel import & Machinery import put together contributes approximately 4000 Million US $.

In a year almost 80 lac Ton sheets are used in Bangladesh.

Press Brake, Shear, Laser Cutting Machine, Plasma Cutting Machine, Mechanical &
Hydraulic Press are used in PEB Industries mainly. They are also used in Cold rolling Mills
also.

Page 35 of 50

CHAPTER 7: SRI LANKAN SHEET METAL INDUSTRY

The Gross Domestic Product (GDP) in Sri Lanka was worth 82.32 billion US dollars in 2015. The
GDP value of Sri Lanka represents 0.13 percent of the world economy. GDP in Sri Lanka averaged
16.25 USD Billion from 1960 until 2015, reaching an all time high of 82.32 USD Billion in 2015 and
a record low of 1.42 USD Billion in 1960. GDP in Sri Lanka is reported by the World Bank

Main import partners are

India 24.6%

China 20.6%

UAE 7.1%,

Singapore 5.9%

Japan 5.7%

Below table gives idea on the share of industry to GDP

Page 36 of 50

Sri Lankan Summary Indicators of GDP

First Quarter 2016@
First Quarter
Indicator

Change/
Value
2010

2011

2012

2013

2014

2015

Growth

1,414,948

1,553,923

1,804,428

1,869,884

1,894,675

1,978,609

2,088,024

5.5

i. Agriculture

125,143

124,301

140,835

143,980

154,469

163,535

166,631

1.9

ii. Industry

420,466

463,886

561,317

599,137

590,054

598,180

647,567

8.3

iii. Services

793,066

885,694

1,015,240

1,044,937

1,065,190

1,122,362

1,177,494

4.9

A. Gross Domestic Product (GDP)

(GDP) at Constant (2010) Prices, (Rs. Million)

(GDP) at Current Market Prices (Rs. Million)

1,424,043

1,726,621

2,141,870

2,407,674

2,529,211

2,724,459

2,979,746

9.4

i. Agriculture

123,334

150,752

146,353

172,667

187,085

210,823

221,774

5.2

ii. Industry

412,961

510,733

707,625

782,170

799,852

854,460

940,988

10.1

iii. Services

806,089

928,562

1,145,482

1,315,246

1,388,362

1,464,757

1,562,677

6.7

(GNI) at Constant (2010) Prices, (Rs. Million)

1,388,039

1,535,455

1,766,645

1,818,970

1,843,501

1,919,439

2,028,694

5.7

(GNI) at Current Market Prices, (Rs. Million)

1,397,440

1,707,084

2,100,263

2,346,517

2,466,071

2,649,323

2,903,036

9.6

100.64

111.11

118.70

128.76

133.49

137.70

142.71

3.6

i. Agriculture

98.55

121.28

103.92

119.92

121.12

128.92

133.09

3.2

ii. Industry

98.22

110.10

126.07

130.55

135.56

142.84

145.31

1.7

iii. Services

101.64

104.84

112.83

125.87

130.34

130.51

132.71

1.7

ii. Colombo Consumers Price Index (CCPI), 2006/2007=100

140.40

150.37

156.33

170.50

177.70

180.10

183.5

1.9

iii. Exchange Rate (One US Dollar = Rupees)

114.36

110.74

118.88

126.79

130.72

132.40

143.9

8.7

iv. Imports of Investment Goods unit price Index 2010=100

109.50

111.76

131.97

120.11

112.98

111.00

115.4

4.0

i. Exports of Goods at FOB value

239,618

295,730

305,474

299,019

368,151

381,943

392,671

2.8

ii. Imports of Goods at CIF value

364,520

491,355

636,075

571,873

620,660

634,338

661,342

4.3

B. Gross National Income (GNI)

C. Price Indices
i. GDP Implicit price deflator (2010=100)

D. External trade, (Rs. Million)

Page 37 of 50

iii. Imports of Investment Goods (Building materials, Vehicles,

Machinery and equipment at CIF value)

75,385

97,373

155,082

146,656

128,362

159,045

179,001

12.5

iv. Primary Income from rest of the world

1,481

12,083

4,590

4,303

5,139

4,698

4,308

(8.3)

v. Primary Income to rest of the world

28,084

31,620

46,197

65,461

68,279

79,834

81,017

1.5

vi. Net Primary Income from rest of the world

(26,604)

(19,537)

(41,607)

(61,158)

(63,141)

(75,136)

(76,710)

2.1

M1

362,752

419,143

448,621

465,413

511,410

633,325

729,592

15.2

M2

1,600,964

1,899,804

2,321,171

2,749,442

3,165,810

3,553,629

4,206,386

18.4

E. Money Supply (Rs. Million)

@ Provisional

Source: Department of Census and Statistics, Central Bank of Sri Lanka

Source - Department

of Census and Statistics

Page 38 of 50

Gross Domestic Product and Percentage Shares

Rs Million

Current Prices
#

Gross Value Added (GVA) by economic activity (SLSIC)

Constant (2010) Prices

VA

Share

VA

Share

Agriculture, Forestry and Fishing

221,774

7.44

166,631

7.98

Growing of Cereals (except rice)

6,481

0.22

4,896

0.23

Growing of Rice

14,124

0.47

10,602

0.51

Growing of Vegetables

24,622

0.83

19,186

0.92

Growing of Sugar cane, tobacco and other non-perennial crops

724

0.02

509

0.02

Growing of fruits

17,736

0.60

14,016

0.67

Growing of Oleaginous Fruits (Coconut, king coconut, Oil palm)

23,632

0.79

18,442

0.88

Growing of Tea (Green leaves)

16,136

0.54

15,385

0.74

Growing of other beverage crops (Coffee, Cocoa etc..)

295

0.01

301

0.01

Growing of spices, aromatic, drug and pharmaceutical crops

22,502

0.76

14,101

0.68

10

Growing of rubber

4,277

0.14

8,212

0.39

11

Growing of other perennial crops

6,763

0.23

3,757

0.18

12

Animal Production

19,532

0.66

12,704

0.61

13

Plant propagation and agricultural supporting activities

3,062

0.10

2,597

0.12

14

Forestry and Logging

20,297

0.68

13,286

0.64

15

Marine fishing and Marine Aquaculture

39,394

1.32

26,670

1.28

16

Fresh water fishing and Fresh water Aquaculture

2,195

0.07

1,967

0.09

Industries

940,988

31.58

647,567

31.01

17

Mining and quarrying

72,037

2.42

51,602

2.47

18

Manufacture of food, beverages & Tobacco products

325,419

10.92

151,348

7.25

19

Manufacture of textiles, wearing apparel and leather related products

137,896

4.63

97,656

4.68

20

Manufacture of wood and of products of wood and cork, except furniture

10,392

0.35

8,067

0.39

21

Manufacture of paper products, printing and reproduction of media products

7,654

0.26

11,775

0.56

22

Manufacture of coke and refined petroleum products

13,055

0.44

13,897

0.67

23

Manufacture of chemical products and basic pharmaceutical products

19,513

0.65

18,845

0.90

24

Manufacture of rubber and plastic products

10,223

0.34

10,493

0.50

25

Manufacture of other non- metallic mineral products

34,676

1.16

19,261

0.92

26

Manufacture of basic metals and fabricated metal products

13,828

0.46

10,742

0.51

27

Manufacture of machinery and equipment i.e..

6,573

0.22

10,765

0.52

28

Manufacture of furniture

20,406

0.68

30,412

1.46

Other

manufacturing, and

Repair

and

installation

of

29

machinery and equipment

13,902

0.47

18,314

0.88

30

Electricity, gas, steam and air conditioning supply

21,840

0.73

22,497

1.08

31

Water collection, treatment and supply

4,206

0.14

2,775

0.13

32

Sewerage, Waste, treatment and disposal activities

4,761

0.16

5,997

0.29

33

Construction

224,608

7.54

163,120

7.81

Services

1,562,677

52.44

1,177,494

56.39

Page 39 of 50

34

Wholesale and retail trade

307,971

10.34

240,226

11.50

35

Transportation of goods and passengers including Warehousing

308,138

10.34

213,408

10.22

36

Postal and courier activities

1,075

0.04

1,012

0.05

37

Accommodation, Food and beverage service activities

44,207

1.48

34,232

1.64

38

Programming and broadcasting activities and audio video productions

841

0.03

597

0.03

39

Telecommunication

16,660

0.56

10,045

0.48

40

IT programming consultancy and related activities

4,143

0.14

3,207

0.15

41

Financial Service activities and auxiliary financial services

92,465

3.10

111,599

5.34

42

Insurance, reinsurance and pension funding

29,798

1.00

15,844

0.76

43

Real estate activities, Including Ownership of dwelling

157,965

5.30

122,236

5.85

44

Professional services

47,340

1.59

35,831

1.72

45

Public administration and defense; compulsory social security

153,058

5.14

101,365

4.85

46

Education

63,337

2.13

42,381

2.03

47

Human health activities, Residential care and social work activities

61,279

2.06

31,643

1.52

48

Other personal service activities

274,400

9.21

213,867

10.24

Equals Gross Value Added (GVA), at bp

2,725,439

91.47

1,991,691

95.39

8.53

96,332

4.61

100.00

2,088,024

100.00

(+) Taxes less subsidies on products

Equals Gross Domestic Product (GDP), at mp

254,307
2,979,746

Source: Department of Census and Statistics

As per above data, when GDP is Rs 1,978,609 Million, Industry is Rs 854,460 Million (43%). When
we break down further Rs 54709 Million (6.5% = US $ 377 Million) contributed by the following
segments.

Manufacture of basic metals and fabricated metal products

Manufacture of machinery and equipment i.e..

Manufacture of furniture

Other manufacturing, and Repair and installation of machinery and equipment

Page 40 of 50

GDP is better than Bangladesh

Source Asian Development Bank

Inflation is better than Bangladesh

Source Asian Development Bank

But still steel consumption is very less. Why its less. Below chart will give idea on the same.

Page 41 of 50

There is not much difference in the development over 5 years.

Page 42 of 50

GENERAL STATISTICS YEAR 2015

INDIA

BANGLADESH

SRI LANKA

POPULATION

1.311 billion

0.161 billion

0.0207 billion

GDP in Trillion

$ 2.0495

$0.1951

$ 0.0806

GDP GROWTH RATE

7.8 %

6.1 %

7.0%

GDP PER CAPITA

US $ 1820.87

US $ 972.88

US $ 3818.161

INFLATION

5.0%

6.5%

2.0%

CONTRIBUTION

29.5%

28.61%

26.3%

INDUSTRIAL GROWTH

2.7%A

10%B

--C

STEEL CONSUMPTION

80 Million Tons

8 Million MT

Not clear

Not clear

Not clear

INDUSTRIAL

METAL 30 Million MT

SHEET
CONSUMPTION
PER

CAPITA

25kg

STEEL

CONSUMPTION

61.9kg

(Will grow to 50 Not available

by 2020)

SOURCES:
Asian Development Outlook 2015 by ADB
A - http://www.tradingeconomics.com/india/industrial-production/forecast
B - http://www.thedailystar.net/business/adb-keeps-growth-forecast-unchanged-67pc-year-1201948
C

http://www.asia-monitor.com/economic-analysis-strong-industrial-sector-growth-support-

economy-aug-2016
www.ibef.org/industry/steel.aspx

http://www.lightcastlebd.com/blog/2016/02/market-insight-emerging-steel-industry-in-bangladesh

Page 43 of 50

CHAPTER 8: EMERGING TECHNOLOGY IN SHEET METAL

INDUSTRY FIBER LASER CUTTING MACHINE
Basic purpose of the machine is to cut the sheet, make the holes in all the sizes, including any type of
contours.

According to the new market research report "Laser Processing Market by Type (Solid, Liquid,
Gas), Application (Laser Cutting, Laser Welding, Laser Drilling, Laser Engraving & Marking,
Microprocessing, Advance processing), Vertical & Geography - Global Forecasts to 2022", the
laser processing market is estimated to reach USD 9.75 Billion by 2022, at a CAGR of 6.13%
between 2016 and 2022. The increasing use of solid and gas lasers mainly CO2, fiber, dye, excimer,
and YAG in the cutting, drilling and marking & engraving applications, and the growing demand for
lasers across diversified verticals are driving the growth of the laser processing market.
Source - http://www.marketsandmarkets.com/PressReleases/laser-processing.asp

Source: http://www.laserfocusworld.com/

Page 44 of 50

As HACO is into macro processing industry (1KW or higher) it would be better to understand the
share.

The Fiber Laser market is growing almost 14 to

17%. Where in CO2 is in 3% or in negative.

In Oct14 during Euro Blech Exhibition, 43

companies displayed Fiber Laser, where in only 6
were CO2. Just six years ago the show as 23
Units of CO2 and Fiber were 4 Units.

The trend repeats in India as well. During

AMTEX 16, Delhi all the laser cutting machines
displayed were Fiber Laser.
Source - http://www.laserfocusworld.com/

PRODUCT LIFE CYCLE OF FIBRE LASER

The above data very clearly indicate that, the Product Life cycle of the Fibre Laser in growth stage

Fibre Laser in India is in Growth Stage. Which means, we can expect nice profit margin
Its replacing the CNC Punching Machine

Page 45 of 50

MARKET SIZE OF LASER CUTTING MACHINE IN INDIA

Source Zauba.com

REASONS AS TO WHY FIBER LASER IS PICKING UP IN THE MARKET

The important reasons are listed below.
1. Low working cost
a. Mean time between failure 50000 Vs. 20000 (CO2)
b. Electrical Power Saving

- 93% over CO2

c. Gas & Consumables

-0

d. Power Efficiency

- 50% against 20%

2. Low Maintenance
3. Very less burrs this reduces the secondary operation comparing to CNC Punching.
4. Any contours are possible and very easy with no additional cost.

The possible reasons why its picking up in India - Indian sheet metal industry is considering as
replacement of Punching Machine, in the following aspects

Page 46 of 50

1. LESS INVESTEMENT: In India most of the potential customers are using 0.8mm to 3mm
sheet. In the past, cheapest solution was CNC Punching Machine. CO2 Lasers are very
expensive not only in investment, but working cost as well. Now, Chinese companies are
promoting aggressively Fiber Laser Cutting Machine (500W to 1000W) in India, which is
20% cheaper than a quality CNC Punching Machine for the similar capacity.

2. NO HASSLE OF TOOLING: Different types of tools are very essential to maintain for CNC
Punching Machine. This is totally eliminated in case of Fibre Laser.
3. VARIOUS PROFILE WITH NO EXTRA COST - Contours and different profiles can be
made very easily with no cost, without tooling. Punching Machine needs tooling and hence,
needs time to manufacture the special tool and money.

Page 47 of 50

CONCLUSION
POTENTIAL
Considering the volume of consumption of steel and growth rate of urbanisation, the emerging market
potential in Key SAARC Countries like India, Bangladesh & Sri Lanka. Leading player companies
like HACO, who are in the sheet metal industry, should start working on a suitable strategy for the
ASIAN & SAARC Countries. Because, consumption of these such metal forming machines are going
to be substantially, as evidence from this study.

LIMITATION
Couldnt collect the exact data / number of machines imported to Bangladesh & Sri
Lanka. The data of both the countries for last 2 years are costing around Euro 5000.
CHALLENGES
Following competitor challenges need to be understood and appropriate strategy should be worked out

1. PRICING COMPETITION FROM CHINESE BRANDS Popular brands are - YAWEI,

YANGLI, JFY, BODOR, DNE (JV with Bystronic) etc. Many of them are having Strong
presence in India and Bangladesh. Many times specs are better than HACO

2. GOOD BRAND IMAGE TURKISH COMPANIES HAVE ERMAKSON, Darley, Durma

etc are aggressively penetrating into market. Being a EAST EUROPEAN Countries, they are
being respected well in SAARC countries. Many times Specs are better than HACO

WHAT HACO SHOULD DO

HACO should quickly evaluate the following possibilities and implement on timely basis.

SALES & MARKETING

A. Be aggressive in promoting HACO as an European Brand. Need to use the support of digital
marketing in these regions.
B. Needs to participate in all the major exhibitions in India
C. Needs to participate in one major Exhibition in Bangladesh as well as Sri Lanka
D. Develop couple of strong dealers for promoting HACO Machines in these regions.

Dealer can promote sales of HACO Products. Training and support can be extended
from HACO-INDIA. If needed, Sales Manager can visit the country and support
dealers during the initial days.
Page 48 of 50

HACO INDIA can provide training for the engineers. These dealers can take care of
after sales support in these regions. HACO India can provide online support

If the service is not able to solve, engineer from India can visit.

If in case they can stock couple of machines, it would be very good, else they can
import from India as well Europe.

CHANGES IN CURRENT FACILITY

A. Since HACO has manufacturing facility in India, its wise to have an R & D Facility to cater
into these markets. So that,

Quick changes can be adopted

Continuous improvement on cost effective solution can be developed.

As mentioned above, spec of Chinese & Turkish companies are on the higher
side. R&D Facility will help to improve local responsiveness on the specs.

B. Current Capacity of Press Brake manufacturing is upto 320 ton. Its better increase the
capacity upto 800 ton machine in India itself.

C. CNC Press Brake and Shearing Machine from HACO is successful and its exactly suits the
requirement of SAARC countries, in terms of Quality Vs Price Ratio
Similar strategy needed to adopt for Fibre Laser as well.
Considering the market of Europe, Currently HACO is focusing, Fibre lasers, having a
capacity of 2000W and above with high end automation. The pricing is over Euro 350,00000. As the European market is matured in terms of technology, its easy to penetrate with such
capacity and pricing. HACO should focus fibre laser having a capacity around 500 1000 /
1200W for SAARC Countries, due to

application

different style of approach towards Cost Vs Quality

FINANCIAL ARRANGEMENT
A. HACO, Belgium should have a tie up with Bank to offer 3-5% of rate of interest.
B. Apart from the above, we also should work for LC Credit.
C. HACO INDIA should associate with some financial Institution to promote our machine in
India, Sri Lanka and Bangladesh
D. Associate with Chamber of Commerce of Bangladesh and Sri Lanka for the promotion of
HACO Machines thru finance. For better reliability of repayment, agreement should be made.

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E. Insist foreign ministry of Indian Government for Bilateral agreement with Bangladesh as well
Sri Lanka. Considering the Make in India promotion, it would be comparatively easy to get
into such agreement. With the support of government repayment would be ensured. This
would ease the international business.

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