33 Industry Research Report

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Submitted by CARE Advisory Research and Training Ltd
Industry Research
Report on
Bearings,
Bearings cages &
Stampings Market
Industry Research Report on Bearings, Bearings cages & Stampings Market
Disclaimer
This report is prepared by CARE Advisory Research and Training Limited (CareEdge Research).
CareEdge Research has taken utmost care to ensure accuracy and objectivity while developing
this report based on information available in CareEdge Research’s proprietary database, and other
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of the Offer Documents1, extracts from the report may be published wherein the complete content
in any particular sentence/chart/table is captured. All forecasts in this report are based on
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1
Draft Red Herring Prospectus (DRHP), Red Herring Prospectus (RHP), prospectus (Prospectus) to be filed with the Registrar of
Companies, Ahmedabad at Gujarat (RoC), Securities and Exchange Board of India (SEBI) and the Stock Exchanges or any other
document to be issued or used or filed in relation to the initial public offering of Harsha Engineers International Limited (formerly
known as Harsha Abakus Solar Private Limited) (Company) (the Offer) including any publicity or other materials, presentations or
media/press releases prepared by the Company or its advisors, including any international supplement of the foregoing for
distribution to investors outside India to be issued or filed and research reports prepared by the Company (collectively along with
DRHP, RHP and Prospectus, “Offer Documents”)
2
Table of Contents
1 Economic Outlook ................................................................................................................ 7
1.1 Global Economy .........................................................................................................................7
1.2 Indian Economy .........................................................................................................................9
2 Overview of Global Bearings sector .................................................................................. 20
2.1 General types of bearings and the components of a bearing ....................................................... 20
2.2 Size of the global bearings market............................................................................................. 20
2.3 Type wise breakup of global bearings market ............................................................................ 21
2.4 Application wise breakup of global bearings market .................................................................... 22
2.5 Geography-wise break-up of global bearings market .................................................................. 27
2.6 Growth drivers for the bearings industry .................................................................................... 29
2.7 Challenges ............................................................................................................................... 30
2.8 Key players in global bearings market........................................................................................ 31
2.9 Impact of Electric Vehicles on bearings industry ......................................................................... 35
3 Global Bearing cage market .............................................................................................. 39
3.1 Size of the global bearing cages market ..................................................................................... 40
3.2 Growth Drivers ......................................................................................................................... 40
3.3 Market overview ....................................................................................................................... 41
4 Overview of Global Stamping market ................................................................................ 44
4.1 Stamping process ..................................................................................................................... 44
4.2 Size of the global stamping market ............................................................................................ 44
4.3 Service wise breakup of global stampings market ....................................................................... 45
4.4 Global stamping market by process ........................................................................................... 46
4.5 Geography wise break up of global stamping market .................................................................. 47
4.6 Global Stampings Market by Key end user ................................................................................. 50
4.7 Key players in the global stamping market and company profiles ................................................ 52
4.8 Growth Drivers for Stampings market ........................................................................................ 53
4.9 Outlook for the Global Stampings market ................................................................................... 54
5 Indian Bearings market ..................................................................................................... 55
5.1 Size of Indian Bearings market .................................................................................................. 55
5.2 Type-wise break up of domestic bearings market ....................................................................... 56
5.3 Application wise breakup of domestic bearings market ............................................................... 57
5.4 Trade Scenario ......................................................................................................................... 59
5.5 Government Initiatives ............................................................................................................. 61
5.5.1 Production Linked Incentive (PLI) scheme ............................................................................. 61
5.5.2 National Infrastructure Pipeline (NIP) .................................................................................... 63
5.5.3 National Auto Policy 2018 ..................................................................................................... 64
5.5.2 National Automotive Testing and R&D Infrastructure Project (NATRiP) .................................... 65
5.5.3 The Automotive Mission Plan 2016-26 ................................................................................... 66
5.5.4 National Electric Mobility Mission Plan 2020 ........................................................................... 66
5.6 Performance of key end user industries ..................................................................................... 68
5.7 Outlook for Indian bearings industry ......................................................................................... 78
6 Indian Bearing cages market ............................................................................................ 79
6.1 Size of Indian Bearing cages market .......................................................................................... 79
3
6.2 Growth Drivers ......................................................................................................................... 80

6.3 Challenges ............................................................................................................................... 80
6.4 Outlook ................................................................................................................................... 82
7 Indian Stamping market .................................................................................................... 83
7.1 Overview of Indian stamping market ......................................................................................... 83
7.2 Key End user industries in India ................................................................................................ 84
7.3 Growth Drivers for the Indian Stamping market ......................................................................... 87
7.4 Indian Stamping market Outlook ............................................................................................... 88
8 Brief of solar industry ........................................................................................................ 89
8.1 Overview of Solar Industry ....................................................................................................... 89
8.1.1 Solar Capacity Additions trends (Roof top and ground mounted) ............................................. 91
8.1.2 Trends in Solar Tariffs .......................................................................................................... 91
8.2 Outlook ................................................................................................................................... 92
8.2.1 Growth Drivers..................................................................................................................... 93
8.2.2 Challenges ........................................................................................................................... 94
4
List of Charts
Chart 1: Global Growth Outlook Projections (in %)................................................................................7
Chart 2: Sequential growth in GDP at constant prices (in %) .................................................................9
Chart 3: Quarterly GDP growth in % at constant prices (y-o-y) ............................................................ 10
Chart 4: RBI's GDP Growth Outlook as on December'21 ...................................................................... 11
Chart 5: Sectoral Growth - Quarterly (y-o-y % growth) at constant prices ............................................ 12
Chart 6: y-o-y growth in IIP (in %) .................................................................................................... 13
Chart 7: Growth in per capita GDP, Income & Final Consumption ......................................................... 13
Chart 8: Retail price inflation (% growth year-on-year) ....................................................................... 14
Chart 9: Component wise retail inflation (y-o-y) .................................................................................. 16
Chart 10: Core CPI (y-o-y %) ............................................................................................................ 16
Chart 11: Index of Industrial Production (IIP): Capital goods ............................................................... 17
Chart 12: Trend in GST collections (in Rs crores) ................................................................................ 19
Chart 13: Global bearings market size (in USD billion) ......................................................................... 21
Chart 14: Application wise percentage share breakup of global bearing market in 2020......................... 23
Chart 15: Application wise percentage share breakup of global bearing market in 2029......................... 23
Chart 16: Breakup of global bearings market based on application (in USD billion) ................................ 24
Chart 17: Region wise percentage breakup of global bearings market in 2020 ...................................... 27
Chart 18: Region wise percentage breakup of global bearings market in 2029 ...................................... 27
Chart 19: Geography wise breakup of global bearings market (in USD billion) ....................................... 28
Chart 20: Steel export prices (USD/tonne) .......................................................................................... 30
Chart 21: Market share of key global bearing manufacturers in FY21 ................................................... 34
Chart 22: Key financial metrics of major players.................................................................................. 34
Chart 23: EV car sales ....................................................................................................................... 35
Chart 24: EV commercial vehicle sales (in million units) ....................................................................... 36
Chart 25: Estimated impact of EV on bearing components volumes ...................................................... 37
Chart 26: Bearings components illustration ......................................................................................... 39
Chart 27: Global bearing cages market size (in USD million) ................................................................ 40
Chart 28: Market share of key players in global organized bearing (brass, steel & polyamide) cages market
(USD 2,149.3 million) ........................................................................................................................ 42
Chart 29: Global stamping market value (in USD billion) ...................................................................... 45
Chart 30: Global standard and custom market value in 2029 (in USD billion) ........................................ 46
Chart 31: Break up of global stamping process market (in USD billion) ................................................. 47
Chart 32: Asia Pacific Stamping market (in USD billion) ....................................................................... 48
Chart 33: Global stamping market by region (in USD billion) ................................................................ 49
5
Chart 34: Global key end user break up .............................................................................................. 50

Chart 35: Global key end user market share wise ................................................................................ 51
Chart 36: Indian Bearings market size (in USD billion) ......................................................................... 55
Chart 37: Domestic bearings market split by type (in USD billion) ........................................................ 56
Chart 38: Application wise percentage breakup of Indian bearing market in 2020 ................................. 57
Chart 39: Application wise percentage breakup of Indian bearings market in 2029 ................................ 57
Chart 40: Application wise breakup of Indian bearings market (in USD billion) ...................................... 58
Chart 41: Trend in India's exports & imports of ball or roller bearings (in USD million) .......................... 60
Chart 42: Country wise export mix of ball or roller bearings in 2020 ..................................................... 61
Chart 43: Country wise import mix of ball or roller bearings in 2020 ..................................................... 61
Chart 44: Financial outlay under PLI for existing 3 sectors ................................................................... 62
Chart 45: Financial outlay under PLI for 10 sectors ............................................................................. 62
Chart 46: Sector wise breakup under NIP ........................................................................................... 63
Chart 47: Automotive Mission Plan projections .................................................................................... 66
Chart 48: Production and sales of automobiles in India (million units) .................................................. 68
Chart 49: Sales forecast for passenger vehicles in India ...................................................................... 71
Chart 50: Sales forecast of commercial vehicles in India ...................................................................... 72
Chart 51: Rise of Wind Power in India (GW) ....................................................................................... 75
Chart 52: Wind Power Installation trends (GW) ................................................................................... 76
Chart 53: Trend in solar installed capacity - GW .................................................................................. 77
Chart 54:Indian bearing cages market (in USD million)........................................................................ 79
Chart 55: Average domestic steel prices (Rs/tonne) ............................................................................ 81
Chart 56: Indian Stamping market Revenue in USD billion ................................................................... 83
Chart 57: Indian Stamping market by industry (in USD billion) ............................................................. 85
Chart 58: Indian Stamping by key end user by market share ............................................................... 86
Chart 59: Trend in Solar Capacity Additions in India ............................................................................ 89
Chart 60: State-wise estimation Solar Energy Potential and installed capacities in the country ............... 90
Chart 61: Capacity additions in solar rooftop and solar ground mounted (MW) ..................................... 91
Chart 62: Trend of decreasing Tariff (in Rs/Kwh) ................................................................................ 92
Chart 63: Trend and outlook for installed capacity of ground-mounted solar (GW) ................................ 93
Chart 64: Countries share of PVV module Production .......................................................................... 95
Chart 65: Solar Panel price variation .................................................................................................. 96
6
1 Economic Outlook
1.1 Global Economy
The world economy contracted by 3.1% in CY2020 owing to the global outbreak of Covid-19. In
comparison with the forecasts made by IMF in World Economic Outlook, July 2021, IMF
downgraded its projected global economic growth outlook for CY2021 while the estimates
remained unchanged for CY2022. The global economy is now forecasted to grow by 5.9% in
CY2021 and 4.9% in CY2022. The revision made for CY2021 is due to the downgrades made for
advanced economy and low-income developing countries group.
Chart 1: Global Growth Outlook Projections (in %)
Emerging Market &

World Output Advanced Economies Develoving Economies China India*
9.5
8.0 8.5
5.9 6.4
5.2 5.1 5.6
4.9 4.5
2.3
–2.1
–3.1
–4.5
–7.3
2020 2021E 2022E
Notes: E-Estimates
*For India, data and forecasts are presented on a fiscal year basis and GDP from 2011 onward is based on GDP at
market prices with fiscal year 2011/12 as a base year.
Source: IMF – World Economic Outlook, October 2021
The growth in global GDP in H1 CY2021 was broadly according to the expectations and outruns
for first quarter global GDP were stronger than expected due to continued resumption of economic
activities coupled with policy support from the government. However, the momentum weakened
in the second quarter due to spike in Covid-19 cases in several emerging and developing
economies and consequent disruptions in supply.
Advanced economies group
After a negative growth of 4.5% in CY2020, advanced economies group is projected to grow by
5.2% in CY2021. IMF revised down its forecast from 5.6% made in July 2021 largely due to
7
downgrade made for United States on the back of large inventory drawdowns in Q2 CY2021, in
part reflecting supply disruptions and softening consumption in the third quarter of CY2021. The
projections for United States subsequently incorporate the infrastructure bill recently passed by
the Senate and anticipated legislation to strengthen the social safety net, equivalent to about $4
trillion in spending over the next 10 years.
Similarly, projections were downgraded for Germany and Japan to 3.1% and 2.4% respectively.
For Germany, it was partly due to shortages of key inputs weighing on manufacturing output and
for Japan it was attributed to the effect of the fourth State of Emergency imposed from July to
September as Covid-19 infections hit a record level in the current wave. Overall, across the
advanced economies group, the forecast for CY2022 has been revised upwards from 4.4% to
4.5% in World Economic Outlook – October, 2021 release based on stronger rebound expected
in H1 of CY2022 due to higher vaccine rollouts.
Emerging market and developing economies group

After contracting by -2.1% in CY2020, the emerging market and developing economies group is
estimated to grow by 6.4% in CY2021. This is a revised forecast from 6.3% made in July, 2021
release and is backed by revised upgrades in most of the regions in the group. Projections for
China are slightly revised down to 8% in CY2021 due to stronger than expected scaling back of
public investment while for India, the projections have remained unchanged at 9.5% growth in
CY2021. Apart from China and India, the emerging market and developing economies group is
revised down as the Covid-19 cases increased. Meanwhile, projections made in other regions
have been slightly revised upwards in CY2021. In addition, in CY2022 India is expected to be one
of the fastest growing economies in the world at a rate of 8.5%.
IMF highlighted in its report that the economic recovery is highly dependent on vaccine access
across regions, hence economies will witness diverging recovery rates which may not remain
steady as long as people are exposed to the virus and its emerging variants. Close to 58% of the
population is vaccinated in the advanced economies while only around 36% of the population is
vaccinated in the emerging economies and less than 5% of population is vaccinated in low income
group. In these economies, vaccine supply and distribution remain the primary issue. Hence,
speeding up the vaccination of the world population remains the top policy priority, while
continuing the push for widespread testing and investing in therapeutics. This would help save
millions of lives and also aid in preventing the emergence of new variants thereby hastening the
global economic recovery.
8
1.2 Indian Economy2
1.2.1 GDP growth and Outlook
The Q2 of FY 22 growth rate has propelled India as the World's India’s economy grew by 8.4%
year-on-year in Q2 of FY 22. On a sequential basis (quarter-on-quarter basis), domestic economic
output expanded by 10.4%. The easing/ removal of lockdowns across states along with the steady
decline in covid-19 cases and the higher vaccination rate facilitated higher economic activity and
output in the latest quarter.
Chart 2: Sequential growth in GDP at constant prices (in %)
30.00 22.31
20.00 10.36
9.94 7.51
% growth on Q-o-Q basis
10.00
0.00
Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22
-10.00
-20.00
-16.90
-30.00
-40.00 -29.69
Quarter
Source: MOSPI, CareEdge Ratings Economics Research report

The nominal GDP has grown by 17.6% from Q2 FY22 and is 8.4% higher than the previous
quarter. The high growth here is reflective of the price pressures across the various goods and
services in the economy. Even though, the elevated growth rates over year ago largely reflects
the sharp contraction the country’s economy suffered last year, the annual as well as sequential
improvement suggests that the domestic economy is on the path to recovery.
Even though the domestic economy the Indian Economy has come off the record decline of last
year, it is yet to surpass pre-pandemic level in a meaningful manner.
When compared with the pre-pandemic period i.e., Q2 FY20, the GDP in Q2 FY22 is only
marginally higher by 0.3%.
2
Source: CareEdge Ratings Economics Research report, “India’s Economy in Q2 FY22” dated 30th
November 2021
9
Chart 3: Quarterly GDP growth in % at constant prices (y-o-y)
Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY 22 over Q2 FY20
Real GDP 4.4 -7.4 8.4 0.3
Nominal GDP 5.9 -4.0 17.6 12.4
There are increasing signs of higher level of activity across sectors. This has given rise to
optimism that the recovery in the domestic economy is strengthening. Even if the pace of
recovery is sustained in the next two quarters, India’s GDP for the year is expected to be only
higher than that in FY20 (by around 2%).
Demand and investments are yet to see a meaningful and durable pick-up. Improvements in
these are expected to be limited and gradual given that even before the pandemic, the domestic
economy was grappling with low demand and subdued investment climate. To add to this,
domestic and external challenges and uncertainties still around. The rise in price levels and the
underlying threat from new variants of the Covid virus and the associated challenges of on-and
-off restrictions and lockdowns could be a set-back / challenge for domestic as well as global
recovery.
Given the uncertainties associated with the scale of economic recovery, the RBI is expected to
be maintain its growth focus and continue with the accommodative monetary policy stance even
as it moves towards gradual normalization of support.
As per CareEdge Ratings Economic Research Report, economic activity is expected to attain and
surpass pre-pandemic level from Q3 FY22 onward, hence the GDP growth for the FY 22 made is
estimated at 9.1%.
As per RBI’s fifth bi-monthly monetary policy for 2021-22, The RBI highlighted downside risks to
the growth outlook – on account of the emergence of Omicron Variant and consequent renewed
surge in Covid-19 infections across countries globally.
To add to this there are headwinds from elevated global commodity prices, potential volatility in
global financial markets with faster normalization of monetary policy in advanced economies and
prolonged global supply bottlenecks.
In terms of quarterly growth, it has revised downward the GDP growth projections for Q3 and Q4
of FY22 from its earlier estimates of October’21 (by 0.2% and 0.1% respectively). The Q1 FY22
growth estimate too has been left unchanged at 17.2% and it has pegged Q2 FY23 GDP growth
at 7.8%
10
Chart 4: RBI's GDP Growth Outlook as on December'21
Q3 FY 22 Q4 FY 22 FY 22 Q1 FY 23 Q2 FY 23
GDP Growth 6.6 6 9.5 17.2 7.8
Source: RBI press release dated December 8, 2021

Gross Value Added (GVA)
Gross value added (GVA) is the measure of the value of goods and services produced in an
economy. GVA gives a picture of supply side whereas GDP represents consumption.
• There has been a broad-based year-on-year growth across all the sectors in Q2 FY22 driven by
the low base of year ago.
• Barring agriculture and mining all the other key sectors have in the latest quarter witnessed
growth over Q1 FY22.
• When compared with the pre-pandemic period i.e., Q2 FY20, the output of the service sector
viz., trade, hotel, transport & communication and finance, real estate & professional services have
been lower
• GVA in Q2 FY22 grew by 7.9% on a sequential basis, following the contraction of 13% in the
preceding quarter.
o Industry (30% of GVA) as well as the services (58% of GVA) sector were the drivers of
economic output during the quarter.
o The industrial sector grew 6% on a sequential basis and by 7% on an annual basis.
Manufacturing followed by construction were the driver for growth in industry.
Manufacturing output grew by 8% while construction GVA was 9% higher than Q1
FY22.The higher manufacturing output can be linked to the festive period demand for
manufactured goods that prompted higher levels of production during August September.
The pick-up in construction can be linked to the easing of restrictions and the focus on
infrastructure by the government.
o The contraction in the agriculture sector on a quarterly basis (by 16% in Q2 FY22) is
reflective of the impact the unfavourable weather conditions prevalent during the quarter
that led to loss of output.
o The service sector output in the latest quarter was 16% higher than Q1 FY22 and 10%
more than a year ago. All the sub-segments of the service sector witnessed strong growth
in Q2 FY22 following the contraction of the preceding quarter. The easing of restriction
has led to a fast rebound in this sector. The output of the sector however is yet to attain
pre-pandemic levels.
11
Chart 5: Sectoral Growth - Quarterly (y-o-y % growth) at constant prices
Q-o-Q%
Q2 FY22
growth Q2
v/s Q2
At Constant Prices Q2 FY20 Q2FY21 Q2 FY22 FY22
FY20
Agriculture, forestry & fishing 3.5 3.0 4.5 7.7 -16.2
Industry -1.8 -3.0 6.9 3.7 5.9
Mining & quarrying -5.2 -6.5 15.4 7.9 -14.0
Manufacturing -3.0 -1.5 5.5 5.5 7.9
Electricity, gas, water supply & other utility
1.7 2.3 8.9 8.9 5.2
services
Construction 1.0 -7.2 7.5 -0.3 8.7
Services 8.2 -11.4 10.2 -2.4 16.2
Trade, hotels, transport, communication &
6.8 -16.1 8.2 -9.2 24.9
broadcasting
Financial, real estate & professional
8.9 -9.1 7.8 -2.0 7.0
services
Public administration, defence and other
8.8 -9.2 17.4 6.6 24.7
services
GVA at Basic Price 4.6 -7.3 8.5 0.5 7.9
Source: MOSPI, CARE Ratings Economics Research report
1.2.1 Industrial Growth
Growth in industrial output remained unchanged at 3.2% in October’21 compared with 3.1% in
the previous month. Negative growth in the capital and consumer goods segment has restricted
the growth in overall industrial output. Weakening of the base has contributed to slowing
momentum in industrial activity from the double-digit growth witnessed during the first five
months of FY22. Sequential momentum in industrial activity accelerated by 4.3% during the
month. Output in all sectors witnessed an improvement over the previous month except
electricity, capital goods and consumer goods segment.
The IIP growth has witnessed a moderation over the past two months on account of base
normalisation.
Companies are expected to ramp up output amid strengthening demand scenario which is
expected to support manufacturing growth in the near term. Performance of the mining sector is
expected to pick-up with resumption of mining activities that were impacted by extended
monsoons. Thus, we could expect industrial output to gather momentum in the coming months,
however, it would continue to be subdued with the waning of base-effect.
12
Chart 6: y-o-y growth in IIP (in %)
160.0
133.5
140.0
120.0
100.0
80.0
60.0
40.0 24.2 27.6
13.8 11.5 12.0
20.0 1.0 4.5 2.2 3.1 3.2
-1.6 -0.6 -3.2
0.0
-20.0
1.1.1 Per Capita GDP, Income and Final Consumption
India’s per capita gross domestic product (GDP) de-grew by -8.2% in FY21 from 3.0% growth in
FY20. Gross national income (GNI) dropped by 8.2% in FY21 from a 3.1% growth in FY20. The
per capita private final consumption expenditure (PFCE), that represents consumer spending,
declined by -10.1% in FY21 after growing by 4.4% in FY20.
Chart 7: Growth in per capita GDP, Income & Final Consumption
3.0 3.1 4.4
-8.2 -8.2
-10.1
Per capita GDP Per capita GNI Per capita PFCE
FY20 FY21
Source: CMIE
13
Consumer Price Inflation3
The Consumer Price Index measures the retail inflation the economy by collecting data on change
in prices of most common goods and services used by consumers. In FY22, it eased further to
4.35% in September’21 and is close to CARE Ratings forecast of 4.3%. It was 95 basis points
(bps) lower compared with 5.3% in August’21. The easing of inflation during the month is
primarily on account of a high base effect (7.3% in September’20) and very low food inflation.
Retail inflation was marginally higher by 0.18% over the previous month. Since July’21, retail
inflation has been back within the RBI’s tolerance band of 4-6%, after having spiked in the
preceding two months. Though price pressures have been building up in the fuel and services
component, lower prices in the food & housing segments have helped contain the overall inflation.
Core inflation witnessed a slight uptick in September’21. It continues to remain sticky at elevated
levels. Inflation in both rural as well as urban segments have eased during the month.
Chart 8: Retail price inflation (% growth year-on-year)
Source: MOSPI, CARE Ratings Economic Research
Component wise inflation analysis
Food & Beverages inflation comprising the highest weight of 45.86% in CPI, fell to a 29-
month low of 1.61% in September’21 over a high base of 9.8% in September’20.
• Deflationary trend in prices of vegetables continued for the 10th successive month.
Deflation in vegetable prices widened to 22.5% in September from -11.7% in the previous
3
CARE Ratings Economics Research report dated 12th October, 2021
14
month. However, the pick-up in vegetable prices has been masked by a favourable base
effect.
• Inflation in edible oil has been high at 34.2% in September’21. India’s high dependency
on imports to meet its domestic requirements of edible oils and skyrocketing prices in the
international markets is a major cause of concern. Lower import duties and imposition of
stock limits on edible oils could temper price pressures to some extent.
• Inflation in pulses fell to a 5-month low of 8.75% during the month over a fairly high
base of 14.7% in the same month of the previous year.
• Inflation in protein items like meat and fish (7.99%), eggs (7.06%) has softened during
the month while inflation in milk (3.13%) has risen.
Housing inflation was at 3.58% in September’21 compared with 3.9% in the previous month
and 2.8% in the same month last year. Housing inflation has been range-bound within 3-4% over
the past 12 months.
Fuel and light segment witnessed double-digit year-on-year price growth for the fifth successive
month. Inflation in this component was at 13.6% during the month, higher than 12.95% in
August’21 and 2.8% in September last year. The hike in prices of petrol and diesel is likely push
inflation higher in this segment.
Inflation in the miscellaneous component was at 6.38% compared with 6.4% in the previous
month and 6.9% in the corresponding month of the previous year.
• Higher prices in household goods and services (5.9%), recreation and

amusement (7.58%), transport and communication (9.53%) and health
(7.74%) have been pushing inflation in this component higher.
• Price pressures in the health segment were strong at 7.74% during the month.
Elevated inflation in the health component continues to remain a cause of concern
as it is likely to squeeze into the overall household spending.
• Inflation in transport and communication segment was at 9.53% in
September’21, lower than 10.2% in August’21 and 11.5% in September last year.
15
Chart 9: Component wise retail inflation (y-o-y)
Core CPI
The year-on-year growth in core inflation which constitutes the non-volatile components of the
CPI has witnessed a slight uptick to 5.9% in September’21. This increase in core inflation can be
attributed to the strengthening price pressures in the services component. Core inflation continues
to remain sticky at elevated levels indicative of the lingering price pressures in the economy.
Chart 10: Core CPI (y-o-y %)
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
16
India – Resurgence in manufacturing sector and its expected impact on

capital goods sector
Capital goods can be defined as any good (machinery, plant, equipment) that is used to
manufacture other products either directly or indirectly. The outbreak of Covid-19 severely
affected the demand for capital goods in the country as business and industrial activities remained
subdued for most part of FY21. Low capacity utilization rate and uncertainty caused by the
pandemic forced most corporates to put their capex plans on hold which in turn impacted
production of machinery and equipment required to build those capacities.
However, even before the global outbreak of Covid-19, the sector was going through a
challenging period due to subdued global conditions owing to several issues including the US-
China trade war.
In FY20 (April to September), the index for capital goods declined by 10.2% and witnessed a
sharp contraction of 40.2% in the corresponding period in FY21 as the industry grappled with
several Covid-19 induced challenges such as decline in demand, reverse migration, staggered
shifts and bottlenecks in logistics. However, it grew by 44.8% in FY22 (April to September) on a
yearly basis and needs to be viewed with caution as it is due to low statistical base effect.
Chart 11: Index of Industrial Production (IIP): Capital goods
April - September IIP y-o-y growth

FY20 95.7 -10.2%
FY21 57.2 -40.2%
FY22 82.9 44.8%
Source: CMIE
H2FY21 is estimated to have fared better than H1FY21 as restrictions were lifted however the
recovery witnessed in second half of FY21 was derailed due to the second wave of Covid-19 in
the country which led to state wise restrictions being imposed from April 2021 onwards.
Gradually as Covid-19 cases were brought under control and localized restrictions were eased in
a phased manner from May-June 2021 onwards, manufacturing activities started gathering
momentum. However, issues such as global chip shortage caused due to demand supply
mismatches affected the capital goods industry. Semi-conductor chips are used to manufacture
varied goods such as electronic products, automobiles, smartphones and many other gadgets.
Moreover, these chips are an integral component of upcoming technologies like Artificial
Intelligence, 5G, Internet of Things, blockchains amongst other applications. Supply chains
17
disruptions caused due to the global outbreak of Covid-19, sharp growth in demand for electronic
items due to work from home and hybrid mode of operations are some of the factors that
contributed to the global chip shortage which may not be completely resolved in the near term.
Meanwhile, the pace of mass vaccine inoculation drive in the country has aided in the resumption
of economic activities. Further, traction in manufacturing activities is likely to lead to a positive
outlook for capital goods in the near to medium term and is backed by the government’s thrust
on infrastructure development. The Union budget 2021-22 has proposed a sharp 34.5% increase
in capital expenditure, which is expected to boost the demand for capital goods in the country.
Investments in power equipment’s, renewable energy projects, oil & gas distribution, affordable
housing, port development, railway DFC corridors, coupled with robust industrial activity will drive
growth in capital goods industry in the near term. Further, in the budget the government has
allocated 1.07 lakh crore out of 1.1 lakh crore for development of railway infrastructure. Dedicated
Freight Corridors will benefit railway infrastructure and EPC companies including wagon
manufacturers. Anti-collision systems on high density railway networks would provide impetus to
engineering companies engaged in railway safety systems.
Moreover, several schemes by government to achieve the vision of Atmanirbhar Bharat such as
Production Linked Incentives (PLI) is expected to encourage production in the country and hence
bodes well for the capital goods industry.
GST collections
GST collections in December 2021 grew by 12.7% year-on-year to Rs 1,29,780 crores as
compared with Rs 1,15,174 crores in the corresponding period a year ago. Further, the previous
month of November 2021 registered the second highest revenue collection under GST since it
was introduced in July 2017, the highest being recorded in April 2021 at Rs 1,41,384 crores and
relates to year-end revenues. The government has attributed this growth to pick up in economic
activities, increase in compliance over previous months and rise in GST return filing due to various
policy and administrative measures taken by the government to ensure compliance
Out of Rs 1,29,780 crores revenue collected in Decmber 2021, CGST stood at Rs 22,578 crores,
SGST at Rs 28,658 crores, IGST at Rs 69,155 (including Rs 37,527 crores on import of goods)
and Cess at Rs 9,389 crores (including Rs 614 crores on import of goods).
With resumption of economic activities, it is likely that GST collections may remain at similar levels
or even higher in the near term depending on containment of Covid-19 virus in the country and
consequent imposition of restrictions.
18
Chart 12: Trend in GST collections (in Rs crores)
1,41,384
1,31,526
1,30,127
1,29,780
1,23,902
1,19,847
1,17,010
1,16,393
1,15,174
1,13,143
1,12,020
1,02,709
92,849
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
Source: CMIE
19
2 Overview of Global Bearings sector
2.1 General types of bearings and the components of a bearing
Bearings form an important part of many types of machines and is available in variety of shapes
and sizes. The primary objective of a bearing is to prevent direct contact between two elements
that are in relative motion. This in turn helps to prevent generation of heat and friction.
Rolling element bearings is a type of bearing that includes rolling components in the form of
either balls or cylinders. These types of bearings aid in the free movement of parts in a rotational
motion. The rolling element bearings usually consist of the following components:
• Inner ring
• Outer ring
• Rolling elements (rollers or balls)
• Cage
• Other elements of bearing apparatus
The rolling elements are trapped in between the rings and the cage holds the rolling elements in
place.
2.2 Size of the global bearings market
The global bearings market was valued at USD 85.2 billion in 2015 and grew to USD 106.1 billion
in the year 2019 at a CAGR of 5.6%. Owing to the global outbreak of Covid-19 since end of March
2020, the bearings market contracted in 2020 due to decline in demand and supply chain
constraints on account of Covid-19 induced restrictions. However, a rebound is expected in 2021
and the market is likely to grow at an annual rate of 7% to USD 102.2 billion in 2021. The
expected growth in usage of bearings in several applications such as mining, automotive, heavy
machinery, infrastructure development, power generation and construction is forecasted to drive
the demand for bearings market and it is expected to grow at a CAGR of 6% to 8% over the
period 2021 to 2029 and is estimated to be valued at USD 167.1 billion in the year 2029.
(Note: 2020 refers to fiscal year starting from April 2020 to March 2021 in the report.)
20
Chart 13: Global bearings market size (in USD billion)
167.1
157.8
149.0
140.8
133.1
125.8
118.9
112.4
106.1 102.2
100.4
95.1 95.5
90.0
85.2
2015 A 2016 A 2017 A 2018 A 2019 A 2020 A 2021 F 2022 F 2023 F 2024 F 2025 F 2026 F 2027 F 2028 F 2029 F
Note: Market size is based on revenues; A – Actual, F – Forecast

Source: Bearings Market – Global Insights, Growth, Size, Comparative Analysis, Trends and Forecasts, 2021-2029 by
Research N Reports, CareEdge Research
2.3 Type wise breakup of global bearings market

When split by type, the following are the types of rolling element bearings that hold majority of
the market share.
• Ball Bearings
Ball bearings as the name suggests involves balls in a row as the rolling elements and this
type of bearing gives very low friction when rolling but has limited load capacity.
The usage of ball bearings is growing in two and four-wheeler vehicles as they can
withstand both thrust and radial loads which could be attributed to the rise in demand for
ball bearings and they accounted for the largest share of about 43% in the global bearings
market when split by type and stood at USD 40.7 billion in 2020.
• Roller Bearings
Roller bearings contain rolling elements in the shape of a cylinder and can support greater
loading than ball bearings. Roller bearings accounted for the second largest share of about
34% in the global bearings market when split by type and stood at USD 32.3 billion in
2020.
• The remaining 23% of the market includes 22% share of bearing units (consists of an
insert bearing mounted in a housing) and 1% others.
21
2.4 Application wise breakup of global bearings market

Bearings by application can be used in varied industries as stated below:
• Railways: Auxiliary, Axel Box, Engine, Final Drive, Gear Box, Main Tractor motion,
propeller shaft, transmission, wheel etc
• Aviation & Aerospace: passenger aircraft bodies, freight aircraft, helicopters, drones,
aerospace engines, conveyors etc. This segment includes defense segment as well.
• Automotive: Passenger cars, passenger trucks, bus, commercial trucks, scooters, bikes,
bicycles, etc
• Agriculture: Agriculture Trucks, Tractors, Loaders, Hay And Forage Equipments, Planting
Machines, Floaters Tillage Machine etc.
• Electrical & Electronics: Alternators, Blowers, Compressors, Fans, Machine Tools,
Power Tools, Pumps, Acs, Rolling Mills, Semiconductor Manufacturing, Computer Fans etc
• Construction: Cranes, Hydraulic Excavators, Asphalt Pavers, Motor Graders, Wheel
Loaders, Off-Highway Trucks etc
• Mining: Crushers, Shaker Screens, Pulverisers, Shuttle Cars, Feeders, Mining Trucks,
Excavators etc
• Others: This category includes the industries not classified above including wind sector
22
In 2020, Automotive accounts for the largest share at about 23% followed by Aviation and
Aerospace at about 20%. Automotive is likely to maintain its position as the largest share in 2029
as shown in the chart below.
Chart 14: Application wise percentage share Chart 15: Application wise percentage share
breakup of global bearing market in 2020 breakup of global bearing market in 2029
1.0% 9.0% 0.7%

9.0%
22.6% 21.6%
19.7% 19.5%
13.6% 14.0%
17.5% 18.4%
11.0% 11.2%
5.6% 5.4%
Automotive Construction Automotive Construction

Mining Agriculture Mining Agriculture
Railway Aviation & Aerospace Railway Aviation & Aerospace
Electrical & Electronics Others Electrical & Electronics Others
Note: The patterned sectors above include different automobile segments like passenger vehicles, agriculture trucks,
tractors, cranes, crushers, mining trucks etc
Research N Reports
23
Chart 16: Breakup of global bearings market based on application (in USD billion)
Aviation Electrical
& &
Years Automotive Railways Aerospace Agriculture Electronics Construction Mining Others
2015 A 19.7 14.5 16.9 4.9 7.6 11.4 9.3 0.9
2016 A 20.7 15.4 17.8 5.1 8.0 12.0 9.9 0.9
2017 A 21.8 16.4 18.8 5.4 8.5 12.8 10.4 1.0
2018 A 22.9 17.4 19.9 5.7 9.0 13.5 11.1 1.0
2019 A 24.1 18.5 21.0 6.0 9.5 14.4 11.7 1.1
2020 A 21.6 16.7 18.8 5.4 8.6 13.0 10.6 0.9
2021 F 22.9 18.0 20.1 5.7 9.2 14.0 11.3 1.0
2022 F 25.1 19.9 22.1 6.3 10.1 15.4 12.5 1.0
2023 F 26.4 21.2 23.4 6.6 10.7 16.4 13.2 1.1
2024 F 27.8 22.5 24.7 7.0 11.3 17.4 14.0 1.1
2025 F 29.3 24.0 26.1 7.3 12.0 18.5 14.9 1.1
2026 F 30.8 25.5 27.6 7.7 12.7 19.6 15.8 1.1
2027 F 32.4 27.2 29.1 8.2 13.4 20.8 16.7 1.1
2028 F 34.2 28.9 30.8 8.6 14.2 22.2 17.7 1.2
2029 F 36.0 30.8 32.6 9.1 15.1 23.6 18.8 1.2
CAGR
(2015 to
2019) 5.1% 6.3% 5.5% 5.2% 5.7% 6.1% 5.8% 3.8%
CAGR
(2021 to
2029) 5.8% 7.0% 6.2% 5.9% 6.4% 6.8% 6.5% 2.3%
Automotive
Bearings play a critical role in the smooth functioning of the rotating parts of automobiles. They
support in carrying heavy load and also aid in reducing friction. Some sub components where
bearings are used in an automobile are wheels, steering, pumps apart from internal combustion
engines etc. With respect to revenues, the global automotive bearings were valued at USD 19.7
in 2015 and grew at a CAGR of 5.1% during 2015 to 2019.The growing demand for automobiles
is expected to drive the demand for automotive bearings. The global automotive bearings is
estimated to grow at a CAGR of 5.8% during 2021 to 2029 to reach a value of USD 36 billion in
2029.
Aviation & Aerospace
In the Aviation & Aerospace industry, bearings are used as a component in aircraft landing gear
struts, shock absorbers, rotors of an aircraft, engines, space shuttles, rockets and so on. In
24
terms of revenues, the aviation and aerospace bearings stood at USD 16.9 billion in 2015 and
grew at a CAGR of 5.5% during 2015 to 2019. The growing demand for customised bearing
with features such as reduced weight and space is expected to positively affect aviation and
aerospace bearings market. The growth can also be attributed to expansion of aviation industry
in emerging geographies. The defence sector has also been incorporated in this category, and
government bodies around the globe, especially in China, India, the U.S., Israel, etc., are
investing heavily in developing aerospace engines and aircrafts which can help in protecting the
country's borders. There has been a significant spike in military aircraft demand, especially in
the Asia Pacific region. The global Aviation & Aerospace bearings market is forecasted to grow
at a CAGR of about 6.2% during 2021 to 2029 and is likely to be valued at USD 32.6 billion in
2029.
Railways
In the Railways industry, bearings form an important part of both the passenger and goods
transport. Bearings play a critical role in the safety of the vehicles(trains) and withstand heavy
weight at high speed. In terms of revenues, the railways bearings stood at USD 14.5 billion in
2015 and grew at a CAGR of 6.3% during 2015 to 2019.The growing expansion of rail network
coupled with increasing demand for low maintenance and high reliability bearings is expected
to drive demand for usage of bearings in railways industry. The global bearings market in
railways industry is expected to grow at a CAGR of 7% during 2021 to 2029 and is estimated to
be valued at USD 30.8 billion in 2029.
Construction
In the construction industry, bearings form part of the construction equipment. In terms of
revenues, the construction bearings stood at USD 11.4 billion in 2015 and grew at a CAGR of
6.1% during 2015 to 2019.The growing demand for creation and improvement of existing
infrastructure coupled with demand for customized bearings is expected to drive demand for
usage of bearings in construction industry. The global construction bearing market is forecasted
to grow at a CAGR of 6.8% during 2021 to 2029 and is estimated to be valued at USD 23.6
billion in 2029.
Mining
In the mining industry bearings could be used in material handling equipment, shovels, conveyor
belts, loaders, trucks and other mining equipment. In terms of revenues, the mining bearings
market stood at USD 9.3 billion in 2015 and grew at a CAGR of 5.8% during 2015 to 2019. It is
forecasted to grow at a CAGR of 6.5% during 2021 to 2029 and is estimated to be valued at
USD 18.8 billion in 2029.
Electrical & Electronics
25
In the electrical and electronics industry, bearings could be used in ACs, fans, computers etc.
Advancements in technology is one of the major reasons for end users to either replace or
upgrade their existing electrical and electronic equipments and the outbreak of Covid-19
accentuated the need to adopt technology. Further, work from home and hybrid work model
also led to people upgrading products that enhance personal convenience at home. All of these
factors augur well for the electrical and electronics industry and in turn is expected to drive
demand for bearings used in this industry. In terms of revenues, the electrical and electronics
bearings market stood at USD 7.6 billion in 2015 and grew at a CAGR of 5.7% during 2015 to
2019. It is forecasted to grow at a CAGR of 6.4% during 2021 to 2029 and is estimated to be
valued at USD 15.1 billion in 2029.
Agriculture
In the agriculture sector, bearing are used in agricultural equipment like loaders, trucks, tractors,
planting equipments etc. In terms of revenues, the agriculture bearings market stood at USD
4.9 billion in 2015 and grew at a CAGR of 5.2% during 2015 to 2019. It is forecasted to grow
at a CAGR of 5.9% during 2021 to 2029 and is estimated to be valued at USD 9.1 billion in
2029.
26
2.5 Geography-wise break-up of global bearings market
By region, in 2020, Asia Pacific bearings market accounted for the highest share in total bearings
market at about 40.6% followed by Europe at around 28.4% and North America at about 26.1%.
Latin America and Middle East & Africa stood at a share of 3% and 2% respectively.
Chart 17: Region wise percentage Chart 18: Region wise percentage
breakup of global bearings market in breakup of global bearings market in
2020 2029
2.0% 3.0% 1.5%

3.0%
26.1% 40.6% 26.0% 41.4%
28.4% 28.0%
Asia Pacific Europe Asia Pacific Europe

North America Latin America North America Latin America
Middle East & Africa Middle East & Africa
Asia Pacific
With respect to revenue, the bearing market in Asia Pacific region was valued at USD 34.2 in
2015 and grew at a CAGR of 5.9% during 2015 to 2019. It is forecasted to grow at a CAGR of
6.6% during the period 2021 to 2029 and is expected to be valued at USD 69.2 billion in 2029.
Within Asia Pacific, China accounted for the largest share at about 29.7% in 2020. Meanwhile,
the revenues for bearings market in India accounted for a share of 11.6% and Indian bearings
market is expected to grow at the highest CAGR of 7.9% amongst other countries within Asia
Pacific region during 2021 to 2029 and is estimated to be valued at USD 9 billion in 2029.
27
Chart 19: Geography wise breakup of global bearings market (in USD billion)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
A A A A A A F F F F F F F F F
Asia Pacific 34.2 36.2 38.3 40.6 43.0 38.8 41.6 45.8 48.6 51.5 54.6 57.9 61.5 65.2 69.2
Europe 24.3 25.7 27.1 28.6 30.1 27.1 28.9 31.8 33.6 35.4 37.5 39.6 41.8 44.2 46.7
North America 22.3 23.6 24.9 26.3 27.8 25.0 26.7 29.4 31.0 32.8 34.7 36.7 38.8 41.1 43.5
Latin America 2.5 2.6 2.8 3.0 3.2 2.9 3.1 3.4 3.6 3.8 4.0 4.3 4.5 4.8 5.1
Middle East & Africa 1.9 1.9 2.0 2.1 2.1 1.9 1.9 2.1 2.1 2.2 2.3 2.3 2.4 2.5 2.6
Europe
With respect to revenue, the bearing market in Europe region was valued at USD 24.3 billion in
2015 and grew at a CAGR of 5.5% during 2015 to 2019. It is forecasted to grow at a CAGR of
Within Europe, the demand for bearings is expected to be driven via increasing demand from
Germany, UK and France. Moreover, growing demand for sophisticated, high performance bearing
augurs well for the European bearings market.
North America
With respect to revenue, the bearing market in North American region was valued at USD 22.3
billion in 2015 and grew at a CAGR of 5.6% during 2015 to 2019. It is forecasted to grow at a
CAGR of 6.3% during the period 2021 to 2029 and is expected to be valued at USD 43.5 billion
in 2029. The demand for bearings in this region is being driven by high value bearings such as
customised bearing solutions that are used in heavy machinery and wind turbines. Moreover, the
presence of major bearing providers in countries like USA, Mexico and Canada is aiding the growth
in demand.
Latin America
With respect to revenue, the bearing market in Latin America region was valued at USD 2.5 billion
in 2015 and grew at a CAGR of 6.3% during 2015 to 2019. It is forecasted to grow at a CAGR of
Middle East & Africa
With respect to revenue, the bearing market in Middle East & Africa region was valued at USD
1.9 billion in 2015 and grew at a CAGR of 2.9% during 2015 to 2019. It is forecasted to grow at
28
a CAGR of 3.6% during the period 2021 to 2029 and is expected to be valued at USD 2.6 billion
in 2029.
2.6 Growth drivers for the bearings industry
• Global economic growth
Bearing components have industry wide applications. Increased used of bearings in end
user industries such as mining, heavy machinery, power generation, infrastructure
development and construction is expected to drive the demand for bearings. Moreover,
several countries especially emerging economies like China, India etc are expected to
continue to heavily invest in manufacturing and automotive industries due to growing
industrialisation in such regions which bodes well for bearings industry. Bearing
manufacturers are constantly working to cater to the industry specific bearing
requirements by improving the product designs so as to enhance the performance which
is expected to support the growth in the industry for both standard and customised
bearings.
• Increase in demand for customised bearings

The demand for specialised bearings that cater to industry specific requirements is fuelling
the demand for bearings. This shift towards application specific bearings will aid in the
growth in demand for bearings. Moreover, demand for bearings that give better
performance, require less maintenance and have a longer shelf life is expected to
positively impact the bearings market.
• Need for high performance bearings

The need to operate with bearings that can deliver high performance has been increasing
across industries such as automotive, manufacturing, agriculture etc. This is likely to lead
to manufacturers developing bearing solutions that can deliver high performance and in
turn is expected to drive the demand for bearings. Moreover, with growing EV penetration
in automotive industry, need for EV specific bearings with customized features such as
low noise and friction is also likely to increase.
• Advancements in technology
Bearings need to be continuously monitored throughout its lifecycle in order to keep a
track of its operational efficiency and consistency and reliability of its performance. With
the advancements in technology such as digitalisation and Internet of Things (IoT), ‘smart
bearings’ with internalized sensors and other equipment can self-diagnose expected
failures and faults and provide predictive maintenance. This integration of technology so
as to possibly improve the operational performance of bearings is expected to lead to
growth in the bearings industry.
29
• Demand from wind sector

While demand for bearings is expected to be driven by demand from several end user
industries, the growth in wind installations in particular across the globe is leading to
increase in demand for high capacity wind turbines which augurs well for the bearings
industry. Wind turbine bearings help to improve the energy production as well as its
performance and reliability.
2.7 Challenges
• Volatile prices of raw materials

Steel is one of the primary raw material used in the manufacturing of bearing components
and its fluctuating prices affects the operational income of bearing component
manufacturers. Constant shifts in consumption pattern during the pandemic has caused
high volatility in demand for raw materials which could adversely the manufacturers.
(Refer Chart below). Furthermore, global market places that are volatile can also affect
the bearing manufacturers as it may not possible for them to control additional costs,
expenses and profit when costs of raw materials fluctuate.
The global steel export prices grew at a CAGR of 20% from April 2019 to November 2021.
Chart 20: Steel export prices (USD/tonne)
1200
1000 CAGR 20%

800
600
400
200
0
Jul-19
Jul-20
Jul-21
Jun-19
Jun-20
Apr-21
Jun-21
Apr-19
May-19
Nov-19
Jan-20
Apr-20
May-20
Nov-20
May-21
Nov-21
Aug-19
Sep-19
Dec-19
Feb-20
Mar-20
Jan-21
Aug-20
Sep-20
Dec-20
Feb-21
Mar-21
Aug-21
Sep-21
Oct-19
Oct-20
Oct-21
Source: Steelbenchmarker
• Increasing EV penetration
For impact of increasing EV penetration on bearings industry, refer to section 2.9 of this
report.
30
2.8 Key players in global bearings market
Schaeffler AG
This company was established in 1883 and is headquartered in Germany. It offers bearings and
other components. It has presence across North America, Europe and Asia. The Schaeffler Group’s
business is managed based on the following divisions:
1. Automotive Technologies: This division partners with global automotive industry in

developing and manufacturing components and systems for internal combustion engine,
transmission and chassis applications as well as for hybrid and electric powertrain systems.
2. Automotive Aftermarket: This division is responsible for global business with spare
vehicle parts and provides components and comprehensive repair solutions in original
equipment quality for engine, transmission, and chassis applications.
3. Industrial: This division develops and manufactures components and systems for rotary
and linear motion and offers services for various industrial sectors.
JTEKT
It was incorporated in 1959 and is headquartered in Japan. It offers products such as sensors,
bearings, automotive components and machine tools. It has presence in Europe, North America,
Asia and other regions. JTEKT has the following business units:
1. Automotive business unit: This division provides steering systems for turning, one of
the basic functions of a car, driveline products that support driving, torque control devices
(TCDs) and hub units as well as regulator valves and valves for Fuel Cell Electric Vehicles
(FCEVs)
2. Industrial & Bearings business unit: This division supplies bearings for automotive
and industrial segments.
3. Aftermarket business unit: This division provides after sales services.
4. Machine tools & systems business unit: This division aims to develop machine tools
such as grinders, machining centers, and gear skiving centers; Internet of Everything
(IoE) solutions and other solutions; and life-cycle businesses.
31
NSK
NSK commenced its operations in 1916 and is headquartered in Japan. It offers products such as
bearings, precision machine components and automotive products. It has presence in Asia,
America, Middle East, Europe and Africa. NSK has two business units:
1. Industrial machinery business: This business is involved in operations related to two

product categories, namely industrial machinery bearings and precision machinery and
parts. Industrial machinery bearings meet a wide range of demands in all industries and
come in a variety of types, ranging from miniature to extra-large size.
2. Automotive business: This business is developing a wide range of important functional

parts that support the three critical elements of automobiles—namely running, turning
and stopping—in two businesses: automotive bearings and automotive components. The
automotive bearings business provides various types of bearings used in automobiles,
including hub unit bearings and needle bearings.
SKF
SKF was established in 1907 and is headquartered in Sweden. It offers products such as machine
tools, bearings etc. It operates in various regions including America, Asia Pacific, Europe, Middle
East and Africa. SKF’s offerings can be bifurcated into two segments:
1. Industrial: It includes broad product range of bearings, seals and lubrication systems. It
also includes rotating shaft services and solutions for machine health assessment,
reliability engineering and manufacturing.
2. Automotive: It includes customized bearings, seals and related products for wheel end,
driveline, engine, e-powertrain, suspension and steering applications to manufacturers of
cars, light and heavy trucks, trailers, buses and two wheelers.
Timken
Timken was incorporated in 1899 and is headquartered in USA. It offers various types of bearings
and power transmission products. It has presence in Europe, Middle East, Africa and America.
The company operates under the two reportable segments:
1. Mobile Industries: This segment serves OEM customers that manufacture off-highway
equipment for the agricultural, mining and construction markets; on-highway vehicles
including passenger cars, light trucks, and medium and heavy-duty trucks; rail cars and
locomotives; outdoor power equipment; rotorcraft and fixed-wing aircraft; and other
mobile equipment. Beyond service parts sold to OEMs, aftermarket sales and services to
individual end users, equipment owners, operators and maintenance shops is handled
both directly and indirectly by the company.
32
2. Process Industries: This segment serves OEM and end-user customers in industries
that place heavy demands on the fixed operating equipment they make or use in heavy
and other general industrial sectors such as metals, cement etc. This segment also
supports aftermarket sales and services
NTN
NTN is headquartered in Japan and is a precision machinery manufacturer that researches,

develops, manufactures, and sells bearings and driveshafts (CVJs). It has presence in Europe,
Africa, Asia Pacific and America. It has the following business segments:
1. Industrial machinery market: It markets bearings to a range of industrial machinery

sectors including construction machinery, rolling stock, machine tools, agricultural
machinery, aerospace, office equipment, and wind turbines.
2. Aftermarket: This business covers aftermarket requirements for general machinery,

automotive repair parts (auto parts), as well as maintenance repair overhaul (MRO)
operations for mining, paper, steel , food and other types of machinery.
3. Automotive market: This market covers automotive and automotive-related parts with
the main products of hub bearings, constant-velocity joints, and needle roller bearings.
33
Chart 21: Market share of key global bearing manufacturers in FY21
Schaeffler AG
15%
JTEKT
12%
Others
48%
NTN
6%
SKF
8%
THE TIMKEN
COMPANY NSK Ltd
4% 7%
Notes:
o Market share is based on revenues
o The share of others at 48% also includes unorganized market
o For Schaeffler, SKF and Timken data is CY2020
o Conversion rates:
1 USD = 0.877 Euro
1 USD = 9.205 SEK
1 USD = 106.725 JPY
Source: Company annual reports, CareEdge Research
Chart 22: Key financial metrics of major players
12.9%
8.9% 9.4%
8.3%
6.0%
1.0% 0.9%
0.3%
-0.6% -0.1%
-2.1%
-3.3%
Schaeffler AG JTEKT NTN SKF NSK Ltd THE TIMKEN

COMPANY
Operating Profit Margin Net Profit Margin
Source: company annual reports, CareEdge Research
34
2.9 Impact of Electric Vehicles on bearings industry
There is a growing thrust on adoption of electric vehicles (EV) across the globe amid increasing
carbon emissions which have serious repercussions including global warming. EVs are estimated
to be 2 to 4 times more efficient than the internal combustion engine (ICE) models and can
significantly aid in reducing greenhouse gas emissions and help curb environmental issues such
as air pollution.
Various countries have acknowledged the need to promote EVs and announced policies aimed at
faster deployment and adoption of EVs. The cost of batteries and EVs is reducing worldwide and
the charging infrastructure is also being set up which augurs well for the EV industry.
Manufacturers are expected to continue to introduce a greater number of EV vehicles in the
market going forward. The global EV market is expected to be led by China and Europe supported
by respective favorable government policies.
1. EV car sales
The global cars market was significantly affected due to the outbreak of Covid-19.
Manufacturers had to grapple with issues both on the demand and supply side. While
H2CY2020 is estimated to have performed better than H1CY2020 as restrictions were
gradually lifted across the globe and economic activities resumed in a phased manner, the
overall car sales declined by 16% on a yearly basis. Interestingly, the global EV car sales went
up in 2020 and Europe overtook China to account for the highest number of new registrations
in the global market. This was supported by favorable government policies introduced by the
respective regions. While in the rest of the world, electric car sales were affected due to
spread of Covid-19 but not as severely as sales of ICE vehicles.
Chart 23: EV car sales
25.0 20.0%
22.1
18.0%
17.3%
20.0 16.0%
EV cars sales share
CAGR 22% 14.0%

in million units
15.0 12.0%
10.0%
10.0 8.0%
6.0%
4.6%
5.0 3.0 4.0%
2.0 2.5% 2.1 2.7%
0.5 0.8 1.2 2.0%
1.0% 1.5%
0.8%
0.0 0.0%
2015 2016 2017 2018 2019 2020 2030
Notes: EV includes plug-in hybrid vehicles (PHEV) and battery powered electric vehicles (BEV) only
Source: Global EV Outlook 2021, IEA
35
The chart above depicts sales of EV cars that have been growing sequentially on an annual
basis at a CAGR of 41.1% during 2016 to 2020 and stood at 3 million units in 2020. Further,
the EV cars sales share grew from 1% in 2016 to 4.6% in 2020 and this is likely to increase
going forward. EV car sales are projected to increase to about 22.1 million units in 2030 at a
penetration rate of about 17.3%. In addition, they are expected to grow at a CAGR of 22%
during 2020 to 2030. The growth is likely to be driven by expected favorable government
policies’ support. It will also be aided by continued growing awareness of consumers towards
environmental issues such as GHG emissions and thereby the need to switch to electric
vehicles.
2. EV commercial vehicle sales

This segment consists of electric vans, trucks and buses segment. Buses were the first and
most successful case of electrification in the heavy-duty vehicle segment however the growing
demand for trucks is encouraging manufacturers to broaden their product line. The EV
commercial vehicle sales grew at a CAGR of 7.9% and stood at 0.19 million units in 2020. EV
sales of commercial vehicles is expected to grow up to 3.6 million units in 2030 and grow at
a CAGR of 34.2% during 2020 to 2030.
Chart 24: EV commercial vehicle sales (in million units)
4.00 3.6
3.50
3.00
2.50 CAGR 34.2%
2.00
1.50 CAGR 7.9%
1.00
0.50 0.13 0.18 0.19 0.20 0.15 0.19
0.00
2015 2016 2017 2018 2019 2020 2030
Note: EV includes plug-in hybrid vehicles (PHEV) and battery powered electric vehicles (BEV) only
3. EV 2 & 3-wheeler sales

EV 2 and 3-wheelers are estimated to continue to lead the electric vehicle revolution and
account for the highest penetration amongst all other segments. 2 and 3-wheelers are
comparatively easier to electrify as they are used for shorter travel distances and are light
weight by design as compared to other modes of transport. Their dependency on
commercial charging points is also lower. The growth in penetration of such vehicles is
primarily expected to be driven by Asian region where 2 and 3 wheelers are dominant.
36
The global sales of 2 and 3 wheelers is projected to grow from about 25 million in 2020
to 50 million in 2030 and account for more than 50% of the sales.4
Within Asia, China is leading the electrification of this transport segment. In India as well,
the electrification journey is being led by 2 and 3 wheelers segment. By 2030, it is
estimated that EV sales penetration (including 2 and 3 wheelers segment) will be more
than 30% and will be driven by 2 and 3-wheeler segment.
Impact on bearings industry
The growing demand for EVs is estimated to have an impact on the bearing industry volumes.
On one hand, the number of bearings required in an electric vehicle is likely to be lower as
compared to the ones required in an internal combustion engine (ICE) model. Moreover, needle
cages bearings used in engines and small cage bearing used in 2 and 3 wheelers are likely to be
the most impacted type of bearings due to increasing penetration of EVs. Also, the bearing
manufacturers are faced with the challenge of developing customized bearings for EVs.
Chart 25: Estimated impact of EV on bearing components volumes
Without EV penetration,
5.7%
bearing components CAGR
Estimated loss
5.2%
With EV penetration,
bearing components
CAGR
2020 2030
Notes:
Key assumptions; Number of bearing required in cars: ICE – 35; EV – 21 (60% of ICE)
Number of bearing required in 2&3 wheelers: ICE- 15; EV – 9 (60% of ICE)
Source: CareEdge Research
To estimate the impact of EV penetration on the bearings industry, the base scenario of EV
penetration is compared with a scenario assuming no EV penetration. In a scenario assuming
demand for all vehicles to be ICE models over the next 10 years, the volumes of bearings required
for the automotive segment would have grown at a CAGR of 5.7% during the same period.
4
37
However, with EV models, transmission bearings that are primarily used in engines of ICE models
will get affected. Hence, with the growing penetration of EVs in the automotive market, the
volumes of bearings are expected to grow at a CAGR of 5.2% during CY2020 to CY2030. Thus,
EV penetration is expected to impact the volume of bearings demand by 0.5% in volumes. On
the other hand, EV specific bearings are likely to command premium pricing in the market, as
they will be customized to suit requirement of an EV with features such as higher precision, lower
noise and friction. This premium pricing is likely to partially cushion the impact on overall sales of
bearing components due to growing EV penetration in automotive market. Hence, the impact of
growing penetration of EVs on bearing components over the next decade is expected to be
limited. The automotive segment constitutes about 23% of the global bearings market and hence
the impact on the global bearings industry overall is expected to be limited.
Research and development investments in bearings and cages are also needed to
support EV penetration
The operations of an electric motor can be characterized with higher speed, acceleration and
temperature as compared with ICE. Bearing manufacturers have to develop bearings and its
apparatus that is suitable to the requirements of an electric motor. For instance, they need to
develop bearings that have optimized friction as an EV motor is capable of running at higher
rotational speeds. Higher rotation of bearings leads to generation of heat which can heat up the
components. Moreover, higher speed means creating more effective lubrication solutions to
ensure smooth running of the vehicle.
In addition, speed is just one aspect. An electric motor inverter can be associated with the risk of
stray current leakages that can leak through the components and cause damage or sudden
failure. Therefore, bearing manufacturers need to develop lightweight bearings by altering its
material, design and heat treatment levels. Such bearings require customized cage designs
amongst other requirements. Further, manufacturers need to develop bearings that have
improved reliability and enhanced bearing life so that they can operate efficiently throughout the
life cycle of the electric vehicle.
The future of the automotive industry is EVs and EV specific bearings are going to play a critical
role in enhancing the performance of electric vehicles. Some of the bearing manufacturers have
started coming up with innovative solutions such as using hybrid or ceramic bearings as ceramic
is an electrical insulating material and more suitable for EVs than steel rolling elements. These
bearings are less dense than the ones made of steel and hence can function in lower temperature.
They also require less lubrication. Hence, as the automobile segment is shifting focus to electric
vehicles the need for more silent and lighter bearings and its components will be felt, and the
demand is likely to increasingly shift towards precise dimension and dirt-free bearing steel and
polyamide cages as a probable solution at a premium value. Going forward, bearing
manufacturers are expected to continue to innovate and develop application specific bearings and
allied components which in turn is expected to drive the demand for bearing cages industry.
38
3 Global Bearing cage market

Precision bearing cages forms one of the five components of a bearing; other such components
being, the inner ring, outer ring and rolling elements like rollers or balls and cages. It accounts
for a small portion in the total cost of bearings. Bearing cages are primarily utilized to:
o separate the rolling elements, reducing the frictional heat generated in the bearing
o keep the rolling elements evenly spaced, optimizing load distribution on the bearing
o guide the rolling elements in the unloaded zone of the bearing
o retain the rolling elements of separable bearings when one bearing ring is removed during
mounting or dismounting
Bearing cage is an important component within a bearing and requires the highest lead time
and technical and tooling expertise, for its manufacture when compared to other components
of a bearing.
The chart below is an illustration of bearing components:
Chart 26: Bearings components illustration
Source: SKF
The bearing cage category comprises of roller cages and ball bearing cages and the cages offer
high rigidity, strength and high heat resistant operating conditions. Given the critical function of
a bearing cage, and the resultant quality requirements, global bearing companies have steadily
increased outsourcing manufacture of bearing cages and the business from these bearing
companies has gotten concentrated to a few bearing cage manufacturers.
39
3.1 Size of the global bearing cages market
The global bearing cages is estimated at about 5% of the global bearings market. The global
bearing cages market was valued at USD 4,261.5 million grew at a CAGR of 5.6% between 2015
and 2019. The global outbreak of Covid-19 since end of March 2020 and subsequent imposition
of restrictions in order to arrest the spread of the virus led to contraction in demand for bearing
cages and manufacturers faced supply chain constraints owing to restrictions. This led to
contraction in global bearing cages market in 2020. However, going forward, the expected growth
in usage of bearings in several applications such as mining, automotive, heavy machinery,
infrastructure development, power generation and construction is forecasted to drive the bearing
cages market in 2021. The bearing cages market is expected to grow at a CAGR of 6% to 8%
over the period 2021 to 2029 and is estimated to be valued at USD 8,354 million in the year 2029.
Chart 27: Global bearing cages market size (in USD million)
8,354.0
7,889.4
7,452.1
7,040.6
6,653.3
6,288.6
5,945.2
5,621.7
5,307.0 5,110.6
5,021.4
4,753.1 4,776.3
4,500.1
4,261.5

3.2 Growth Drivers
Apart from the growth drivers stated for bearing manufacturers in bearings section of the report,
other enablers are stated below:
• Growing outsourcing trend of bearing components

Earlier, players used to manufacture bearing components inhouse. However, in recent
years, manufacturers have started outsourcing to emerging regions such as China, India
40
due to low cost manufacturing advantage. This is likely to positively impact the bearing
cages manufacturers.
• Shift of manufacturing units

While China is considered the global manufacturing hub, recent industry developments
such as US China trade war and global outbreak of Covid-19 led to manufacturers setting
up manufacturing units in regions other than China to emerging economies like India
which bodes well for bearing cage manufacturers.
3.3 Market overview

The world bearing cage market is estimated at USD 4,776.3 million in 2020 as shown in the figure
below. Brass, Steel and Polyamide cages form the majority share of the cages segment
constituting an estimated 75% of the market. 60% of this market is estimated to be organized.
Global bearing cages

market in 2020
USD 4,776.3 million
Estimated share of global

bearing brass, steel &
polyamide cages market
USD 3,582.2 million
Estimated share of global

organised bearing
brass,steel, polyamide
cages market
USD 2,149.3 million
Notes:
Bearing cages is estimated as 5% of bearings market
The share of brass, steel and polyamide cages is estimated at 75%
The share of organized bearing cages market is estimated at 60%.
41
Key players and market share
The global bearing cage market is quite fragmented with presence of global and regional players.
Some of the key players operating in the global bearing cages market are Nakanishi Metal Works
Co Ltd (NKC; Japan), Harsha Engineers International Ltd (HEIL, India), MPT Präzisionsteile GmbH
Mittweida (MPT Group Gmbh, Germany) and Manu Yantralaya Pvt Ltd (MYPT, India). The share
of some of the key players operating in the global organized bearing (brass, steel and polyamide)
cages market in stated in the chart below. This includes outsourced players in bearing cages
market. Meanwhile, the global bearing cages segment also has a significant share of inhouse-
production by key bearing manufacturers which is reflected in the remaining 81.2% of the share
in the chart below.
Chart 28: Market share of key players in global organized bearing (brass, steel & polyamide)
cages market (USD 2,149.3 million)
5.2%
11.2%
1.7%
0.7%
81.2%
HEIL NKC MPT Manu Yantralaya Others + Inhouse
Notes:
• For MPT and MYPT revenues are estimated basis previous years CAGR of the industry.
• Since NKC has a higher share of other businesses, estimated bearings sector revenue has been considered.
Revenue from bearings segment is estimated at 60% for NKC.
42
NKC
As seen from chart above, NKC has the largest market share globally. NKC was founded in 1941
and is headquartered in Japan. They manufacture products such as bearing cages, Conveyor
Systems, Automatic Controlling Equipment, Sash Rollers, Residential Housing Related Products,
Rubber Seals, Precision Tooling, Automatic Guided Vehicles (AGV), Various Metal Press Products,
Various Plastic Injection-molded Articles, Cold-rolled Products. NKC bearing retainer division just
like its conveyor division expanded its global presence with production facilities in Atlanta,
Georgia, USA and in the Philippines. NKC owns [19] affiliated companies, including [6] factories,
outside of Japan that export products to all corners of the world.
HEIL
The engineering business was incorporated in 1986 in India through flagship company, Harsha
Engineers Limited (HEL). HEL was recently merged with its international business and renamed
as Harsha Engineers International Ltd. It is a leading engineering company that offers diversified
suite of products across geographies and end-user industries. It manufactures brass, steel and
polyamide cages and stamped components with production facilities located in Asia (India &
China) and in Europe (Romania). HEIL’s market share is estimated to be around ~50% in the
Indian bearing cages market5 making it the largest manufacturer of precision bearing cages in
organized sector in India in terms of revenues and amongst the leading manufacturers of
precision bearing cages in the world. HEIL accounted for a share of 5.2% in the global organized
bearing brass, steel and polyamide cages market in CY2020.
HEIL has also been providing comprehensive complete turnkey solutions to all Solar Photovoltaic
requirements.
MYPT
It was founded in 1988 in Jaipur, India and manufactures bearing cages and other automotive
components. MYPT’s manufacturing facilities are located in Jaipur, India. It also exports bearing
cages and auto parts to global companies.
MPT Group GmbH
MPT Group GmbH commenced its operations in 1895 and is head quartered in Germany. It
provides industry solutions by manufacturing automotive and mechanical engineering
components like cages, stampings, rings and components etc. Its production facilities are set up
across the globe in regions such as Europe, Asia, North America and South America.
5
Indian bearing cages market refers to the organized segment in India which is estimated to be around 55-60% of
the total consumption in India.
43
4 Overview of Global Stamping market
4.1 Stamping process

Stamping is the process of manufacturing which converts flat metal sheets into specific
shapes and sizes depending upon the end user’s requirement. It includes a number of
metal forming techniques such as blanking, coining, bending, amongst others, which are
used in the manufacturing process. Stamping experts also use Computer Aided Design or
Computer Aided Manufacturing tools for creating different designs.
There are different stamping types or techniques which can be used depending upon the
product. The major types of stampings are:
• Progressive die stamping

• Fourslide stamping
• Transfer die stamping
• Deep draw stamping
4.2 Size of the global stamping market

The Global Stampings market grew at 4.5% CAGR between 2015 to 2019 and was valued
at USD 175.5 billion in the year 2020. It is projected to grow at a CAGR of 5.6% between
2021 and 2029 and is expected to be worth USD 287.3 billion by 2029. The year 2020
registered a decline of 9% and the market size slipped to USD 175.5 billion due to Covid-
19 impact. However, the Stampings market is expected to rebound and grow at a 5.6%
CAGR in future.
44
Chart 29: Global stamping market value (in USD billion)
350.0
300.0 287.3
272.5
258.6
245.7
250.0 233.6
222.3
211.7
201.8
192.9 186.0
200.0 184.4
176.5 175.5
169.0
162.0
150.0
100.0
50.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
(A) (A) (A) (A) (A) (A) (F) (F) (F) (F) (F) (F) (F) (F) (F)

Source: Stampings Market – Global Insights, Growth, Size, Comparative Analysis, Trends and Forecasts, 2021-2029
by Research N Reports
4.3 Service wise breakup of global stampings market

On the basis of service, the stamping market is bifurcated into Custom and Standard. Custom
stamping is a process that requires custom tooling or techniques to produce parts specified by
the customer. Standard stamping helps in producing a high volume of identical components in a
faster and more affordable way.
Standard service was holding the larger market share in 2020 due to demand for standardized
products from automotive OEMs and other industrial machinery producers.
The Standard service market stood at USD 138.4 billion in 2020, whereas the Custom service
market stood at USD 37.1 billion. However, in the coming years the custom service segment is
forecasted to grow at a higher CAGR of 6.6% between 2021-2029 and reach USD 65.9 billion by
2029. In custom stamping segment, existing niche and low volume high value products and
special components segment have exponential growth opportunities. The Standard service
segment is forecasted to expand at CAGR of 5.3% between 2021-2029 and reach USD 221.4
billion by 2029.
45
Chart 30: Global standard and custom market value in 2029 (in USD billion)
250.0
221.4
210.5
200.4
200.0 190.8
181.9
173.6
165.7
158.4
152.5
146.1 146.3
150.0 140.2 138.4
134.6
129.3
100.0
62.0 65.9
54.8 58.3
48.7 51.7
43.4 46.0
50.0 36.3 38.3 40.4 37.1 39.7
32.7 34.5
0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Custom Standard
Historical CAGR (2015-2019):
Custom 5.4%
Standard 4.2%
4.4 Global stamping market by process

The process of converting sheets into specific shapes and sizes can include a number of
techniques like blanking, embossing, coining etc. Blanking was leading the stamping process
market in 2020 and accounted for 32.2% of the market followed by Coining at 27.3%, Bending
at 20.2% and Embossing at 16.4%.
While in the coming years, Embossing process is forecasted to grow at the highest CAGR of 6.1%
between 2021-2029 and reach USD 49.4 billion by 2029, followed by Blanking (CAGR of 5.8%),
Bending (CAGR of 5.6%) and Coining (5.3%).
46
Chart 31: Break up of global stamping process market (in USD billion)
Process Blanking Coining Bending Embossing Others

2015 (A) 51.6 44.8 32.7 25.9 7.0
2016 (A) 53.9 46.6 34.1 27.2 7.2
2017 (A) 56.5 48.5 35.6 28.5 7.4
2018 (A) 59.1 50.6 37.2 30.0 7.6
2019 (A) 62.0 52.7 38.9 31.5 7.7
2020 (A) 56.5 47.8 35.4 28.8 6.9
2021 (F) 60.1 50.5 37.6 30.7 7.2
2022 (F) 65.3 54.7 40.7 33.5 7.6
2023 (F) 68.7 57.2 42.8 35.3 7.8
2024 (F) 72.3 59.9 44.9 37.3 8.0
2025 (F) 76.1 62.7 47.2 39.4 8.2
2026 (F) 80.2 65.8 49.6 41.6 8.4
2027 (F) 84.7 69.0 52.2 44.0 8.7
2028 (F) 89.4 72.5 55.0 46.6 8.9
2029 (F) 94.5 76.3 58.0 49.4 9.1
CAGR
(2015-2019)
4.7% 4.1% 4.5% 5.0% 2.5%
CAGR
(2021-2029)
5.8% 5.3% 5.6% 6.1% 3.1%
Note: Market size is based on revenues; F – Forecast
4.5 Geography wise break up of global stamping market

In the year 2020, the global stamping market was valued at USD 175.5 billion. By region, Asia
Pacific was leading the stamping market and accounted for 47.3% of the total stamping revenue
followed by Europe at 27.2% and North America at 21.2%. Latin America constituted for 2.6%
and Middle East and Africa constituted for 1.7% market share respectively.
North America
With respect to market value, the Stampings market in North America stood at an USD 37.3 in
2020 and is expected to reach USD 60.5 billion by 2029, forecasted to grow at a 5.5% CAGR
between 2021 and 2029. Countries with high GDP like North America have well established
manufacturing sector and are willing to promote manufacturing further. Hence, countries in such
regions produce stamped metal parts at large scale.
Europe
By Market Value, the Stampings market in Europe stood at USD 47.7 billion in 2020 and is
expected to reach USD 77.2 billion by 2029, forecasted to grow at a 5.5% CAGR between 2021
and 2029. Within Europe, Italy and France are two countries where major growth is expected.
47
Asia Pacific
By Market Value, the Stampings market in Asia Pacific stood at USD 83.1 billion in 2020 and is
and 2029.
Among Asia Pacific countries, India is expected to grow highest followed by Southeast Asia. Skilled
and unskilled labour along with increasing awareness about stamping will drive the stamping
market. Due to these factors, Southeast Asia is expected to emerge as a manufacturing hub in
near future.
Chart 32: Asia Pacific Stamping market (in USD billion)
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
China 22.8 23.7 24.7 25.8 26.9 24.4 25.8 27.9 29.2 30.6 32.1 33.6 35.3 37.1 39.0
Japan 17.6 18.4 19.3 20.2 21.2 19.4 20.6 22.5 23.7 24.9 26.3 27.7 29.3 31.0 32.8
India 8.3 8.8 9.3 9.9 10.5 9.6 10.4 11.4 12.1 12.9 13.8 14.7 15.7 16.7 17.9
China Japan India
Country Historical CAGR (2015-2019)

China 4.2%
Japan 4.8%
India 5.9%
Middle East and Africa
By Market Value, the Stampings market in Middle East and Africa stood at USD 2.9 billion in 2020
and is expected to reach USD 4.0 billion by 2029, forecasted to grow at a 3.3% CAGR between
2021 and 2029.
Latin America
48
By Market Value, the Stampings market in Latin America stood at USD 4.5 billion in 2020 and is
and 2029.
Chart 33: Global stamping market by region (in USD billion)
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Latin America 4.1 4.3 4.5 4.7 5.0 4.5 4.8 5.3 5.6 5.9 6.2 6.5 6.9 7.3 7.7
Middle East & Africa 3.0 3.1 3.2 3.2 3.3 2.9 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 4.0
APAC 76.1 79.5 83.2 87.0 91.2 83.1 88.2 95.8 100.7 105.9 111.4 117.4 123.7 130.6 137.9
Europe 44.3 46.1 48.1 50.2 52.4 47.7 50.5 54.7 57.3 60.1 63.1 66.3 69.7 73.3 77.2
North America 34.5 36.0 37.6 39.2 41.0 37.3 39.5 42.8 44.8 47.0 49.4 51.9 54.6 57.5 60.5
Source: Stampings Market – Global Insights, Growth, Size, Comparative Analysis, Trends and
Forecasts, 2021-2029 by Research N Reports
Historical CAGR (2015-2019)

North America 4.4%
Europe 4.3%
APAC 4.6%
Middle East & Africa 2.2%
Latin America 5.2%
49
4.6 Global Stampings Market by Key end user

The Global Stampings market by Key end user is quite diversified. The stamping process
is used widely in Consumer goods, Power transmission, Construction and various other
industries.
In 2019, the Automotive industry accounted for 18% of global stamping revenue followed
by Electrical and Electronics at 17%. In the years ahead, the Medical industry is forecasted
to grow at the highest CAGR of 6.4% among other industries.
Chart 34: Global key end user break up
Cons Mater Electric

Power
Industr Agricultu umer Automoti Medic Constr Furnitu -ial al and Oth
Transm
y re Good ve al uction re Handli Electro ers
ission
s ng nics
2015 (A) 20.3 5.1 29.1 14.3 17.6 12.4 9.5 24.6 27.3 1.7
2016 (A) 21.3 5.2 30.4 15.0 18.4 12.8 9.9 25.7 28.6 1.8
2017 (A) 22.4 5.3 31.7 15.8 19.3 13.3 10.3 26.7 29.9 1.9
2018 (A) 23.5 5.5 33.1 16.6 20.2 13.8 10.7 27.9 31.2 1.9
2019 (A) 24.7 5.6 34.6 17.5 21.2 14.3 11.1 29.1 32.7 2.0
2020 (A) 22.6 5.1 31.5 16.0 19.3 12.9 10.1 26.4 29.8 1.8
2021 (F) 24.0 5.3 33.4 17.1 20.6 13.5 10.6 28.0 31.6 1.9
2022 (F) 26.2 5.6 36.2 18.7 22.4 14.6 11.5 30.3 34.4 2.0
2023 (F) 27.6 5.8 38.0 19.8 23.5 15.1 12.0 31.7 36.1 2.0
2024 (F) 29.1 6.0 39.9 21.0 24.8 15.8 12.5 33.2 38.0 2.1
2025 (F) 30.7 6.2 41.9 22.2 26.1 16.4 13.1 34.8 40.0 2.2
2026 (F) 32.5 6.4 44.0 23.5 27.5 17.1 13.7 36.6 42.1 2.2
2027 (F) 34.3 6.7 46.3 25.0 29.1 17.9 14.4 38.4 44.4 2.2
2028 (F) 36.3 6.9 48.8 26.5 30.7 18.7 15.1 40.4 46.8 2.3
2029 (F) 38.5 7.2 51.4 28.2 32.5 19.5 15.8 42.5 49.4 2.3
CAGR
3.8
2015- 4.9% 2.8% 4.4% 5.3% 4.7% 3.6% 4.0% 4.3% 4.6%
%
2019
CAGR
2.6
2021- 6.1% 3.9% 5.6% 6.4% 5.9% 4.7% 5.1% 5.4% 5.7%
%
2029
Stamping in industries
• Metal stamping is widely implemented in the automobile industry for producing auto-body
panels and various appliance parts. The increasing investments in major automotive hubs,
like China, Japan and India, on new production facilities are also expected to escalate the
demand for motor stamped parts in the coming years.
• In consumer electronics, metal stamping is used to produce metal frames used in mobile
phones, headphones, speakers, gamepads, and controllers.
50
• There is a growing demand for electric and hybrid vehicles, and hence there has been a
significant rise in the adoption of hot stamping technology.
• The metal stamping is widely utilized in the aerospace industry to manufacture frames
and channels that are used in ultra-lightweight aircraft.
Chart 35: Global key end user market share wise
2020 (A) 2029 (F)

1.0% 0.8%
12.9% 13.4%
17.0% 17.2%
11.0% 11.3%
15.1% 14.8%
18.0% 17.9%
7.3% 5.5%
5.7% 9.8%
9.1% 2.9% 6.8% 2.5%
Agriculture Construction Agriculture Construction
Automotive Consumer Goods Automotive Consumer Goods
Medical Furniture Medical Furniture
Power Transmission Material Handling Power Transmission Material Handling
Electrical and Electronics Others Electrical and Electronics Others
Note: The patterned industries above include different automobile segments like Agricultural thatching equipment,
tractors and Construction equipments like lighting components, shields, trusses. Etc
51
4.7 Key players in the global stamping market and company

profiles
AAPICO Hitech Public Company Limited
AAPICO Hitech Public Company Limited was established in 1996 and is headquartered in
Thailand. The Company is listed on Thailand Stock Exchange and is a premier
manufacturer of OEM automotive parts, is involved in design of jigs and dies, plastic parts,
fuel tanks amongst others.
AAPICO recorded USD 0.5 billion revenue in the year 2020.
CIE Automotive
CIE Automotive was established in the year 1970 is headquartered in Spain. It Is a global
supplier of components, assemblies and sub assemblies for the automotive market.
CIE offers products with multi technology for forging, aluminium injection, stamping and
others. The company has a significant global presence across North America, Europe, Asia
and others.
CIE recorded USD 3.5 billion revenue in the year 2020.
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4.8 Growth Drivers for Stampings market
Stampings process is gaining more acceptance in the global market. The Stamping
market’s growth is driven by customization, its application in multiple industries and its
ease of application.
1. Growth in Customization of stamping
Customization in stamping is being increasingly pursued by the end-users, across several

industries. Stamping process is applied in industries such as automotive, healthcare,
agriculture, aerospace etc. For example, Micro-precision stamping is in demand in the
global stamping market. Diameters as small as 0.012 inches are possible using micro-
precision stamping techniques. The manufacturing of small and highly complex parts plays
a vital role in numerous industries.
2. Ease of Application
The Stamping process is applicable to a number of metal alloys which include copper
alloys, aluminum alloys, nickel alloys, steel and stainless alloys, amongst others. Due to
this property, stamping process is not restricted to any one type of metal and provides
ease of application. For example, in the electrical and electronics industry, copper alloys
are mainly used due to the corrosion resistance property of copper alloys. Also, due to
copper alloy’s superior thermal conductivity of copper, it is being used in manufacturing
of cooking and food processing instruments.
3. Automation of Stamping process
Metal stamping became a popular process as it helped in reducing cost of mass production
of goods. In future, the Stamping market is forecasted to have considerable automation
with the help of Artificial Intelligence and IoT. Consequently, the use of automation will
help the Stamping industry to expand further.
4. Emergence of Online channels
The Global Stampings market will also benefit from the emergence of online B2B sales
channels that increases the scope of the market participants to reach global markets with
ease.
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4.9 Outlook for the Global Stampings market
Due to the Covid-19 outbreak, the global economy had to face enormous adversities. The
lockdowns helped in limiting the spread of virus but brutally affected the industries
globally. Major supply chains, trade, automotive industry, agriculture industry, electronics
industry and many more had been severely disrupted. The impact of these industries was
further passed on to the supporting and end user industries like manufacturing of parts
and components due to lack of demand. Additionally, the waves of the disease did not
help in balancing the demand supply of goods and services.
The situation only improved when the vaccination drives started globally. Life started to
move back to normalcy and workforce began returning to factories and offices gradually.
With the virus spread in control and vaccination drives, the global stampings market has
a positive demand outlook as it has considerable growth potential, predominantly due to
the growth of the automotive and defence sector in countries such as India, China,
Germany, the UK, Japan, amongst others.
Similarly, the rise in focus on manufacturing in numerous countries, especially in the Asia
Pacific region, will provide opportunities for the market participants. The usage of
stamping in the manufacturing of car body panels, transmission components, and interior
and external structural components is expected to stimulate the demand further.
While Medical industry which uses stamping process in manufacturing equipments like
oxygen tank, micro- miniature parts, insulin pumps, etc. is slated to grow at highest CAGR,
Automotive and Electrical and Electronics industry will still hold the top market share in
future. This is mainly due to increase in manufacturing of automotive components which
will be used in EV and also increase in electronics like battery and connector
manufacturing.
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5 Indian Bearings market
5.1 Size of Indian Bearings market

In terms of revenue, bearings market in India accounted for a share of about 4.7% in the global
bearings market in 2020. Meanwhile, within Asia Pacific region, the revenues for bearings market
in India accounted for a share of about 11.6% of the Asia Pacific region’s revenues. The Indian
bearings market grew at a CAGR of 7.2% from 2015 to 2019. The global outbreak of Covid-19
and subsequent imposition of restrictions led to fall in demand for bearings from end user
industries and bottlenecks in supply chain networks of manufacturers. This in turn led to
contraction of domestic bearings market in 2020. However, going forward, with resumption of
economic activities, the market is expected to grow at a CAGR of 7.9% during 2021 to 2029 and
is estimated to be valued at USD 9 billion in 2029.
Chart 36: Indian Bearings market size (in USD billion)
9.0
8.4
7.8
7.2
6.8
6.3
5.9
5.5
4.9 4.9
4.6 4.5
4.0 4.3
3.7
2015 A2016 A2017 A2018 A2019 A2020 A 2021 F 2022 F 2023 F 2024 F 2025 F 2026 F 2027 F 2028 F 2029 F

Source: Bearings Market – Global Insights, Growth, Size, Comparative Analysis, Trends and Forecasts,
2021-2029 by Research N Reports, CareEdge Research
It is estimated that more than 50% of the consumption of bearings in the country is met through
domestic production. Meanwhile, less than 40% of the demand is met through imports and it has
been declining due to increasing localization by multinational players operating in the domestic
bearing industry. It is likely that bearing players will make further investments to enhance product
localization which will lead to decline in imports and in turn encourage domestic production.
55
5.2 Type-wise break up of domestic bearings market
The total bearings market on the basis of type can be split into ball bearings, roller bearings,
bearing units and ‘others’ categories. Bearing units consists of a bearing mounted in a housing.
Ball bearings accounted for the largest share at 43% in 2020 followed by share of roller bearings
at 34%. Bearings units and others category accounted for share of 22% and 1% respectively.
In 2015, in terms of revenue, the ball bearing market in the country stood at USD 1.6 billion and
grew at a CAGR of 7.2% during 2015 to 2019. It is estimated to grow at a CAGR of 7.9% during
2021 to 2029 and is forecasted to be valued at USD 3.8 billion in 2029. Similarly, roller bearings
market in India was valued at USD 1.3 billion in 2015 and grew at a CAGR of 7.4% during 2015
to 2019. It is expected to grow at a CAGR of 8.1% during 2021 to 2029 and is likely to be valued
to USD 3.1 billion in 2029.
Bearings units stood a USD 0.8 billion in 2015 and grew at a CAGR of 7.1% during 2015 to 2019.
It is expected to grow at a CAGR of 7.8% during 2021 to 2029 and is likely to be valued at USD
2 billion in 2029.
Chart 37: Domestic bearings market split by type (in USD billion)
2015 2016 2017 2018 2019 2020

2021 F2022 F2023 F2024 F2025 F2026 F2027 F2028 F2029 F
A A A A A A
Ball Bearings 1.6 1.7 1.8 2.0 2.1 1.9 2.1 2.3 2.5 2.7 2.9 3.1 3.3 3.6 3.8
Roller Bearings 1.3 1.3 1.4 1.6 1.7 1.5 1.7 1.9 2.0 2.2 2.3 2.5 2.7 2.9 3.1
Bearings Units 0.8 0.9 1.0 1.0 1.1 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 2.0
Others 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

56
5.3 Application wise breakup of domestic bearings market
Chart 38: Application wise percentage Chart 39: Application wise percentage breakup of
breakup of Indian bearing market in 2020 Indian bearings market in 2029
9.0% 1.0% 9.0% 0.7%

22.6% 21.6%
19.7% 19.5%
13.6% 14.0%
17.5% 18.4%
11.0% 11.2%
5.6% 5.4%
Automotive Construction Automotive Construction

Mining Agriculture Mining Agriculture
Railway Aviation & Aerospace Railway Aviation & Aerospace
Electrical & Electronics Others Electrical & Electronics Others
Note: The patterned sectors above include different automobile segments like passenger vehicles, agriculture trucks,
tractors, cranes, crushers, mining trucks etc
Automotive
The domestic automotive bearings market accounted for the highest share at 22.4% of the total
domestic bearing market in 2020. It stood at USD 0.9 billion in 2015 and grew at a CAGR of 6.7%
during 2015 to 2019. The demand for automotive bearing is being driven by increasing demand
for automobile. Further, preference for personal mobility since outbreak of Covid-19 will positively
affect the automotive and bearings industries. Moreover, the domestic bearing industry is
expected to benefit from shifting of production facilities of global players to emerging geographies
such as India. The domestic automotive bearings market is expected to grow to USD 1.9 billion
in 2029 at a CAGR of 7.4% during 2021 to 2029.
Aviation & Aerospace
57
The domestic aviation & aerospace bearings market accounted for a share of 19.7% of the total
domestic bearing market in 2020. It stood at USD 0.7 billion in 2015 and grew at a CAGR of 7%
during 2015 to 2019. Increasing investments in defense and growing demand for high
performance bearings in aviation and aerospace is likely to positively affect the aviation and
aerospace bearings industry in the country. It is expected to grow to USD 1.7 billion in 2029 at a
CAGR of 7.8% during 2021 to 2029.
Chart 40: Application wise breakup of Indian bearings market (in USD billion)
Aviation Electrical
and and
Years Railway Aerospace Automotive Agriculture Electronics Construction Mining Others
2015 A 0.6 0.7 0.9 0.2 0.3 0.5 0.4 0.04
2016 A 0.7 0.8 0.9 0.2 0.4 0.5 0.4 0.04
2017 A 0.7 0.8 1.0 0.2 0.4 0.6 0.5 0.04
2018 A 0.8 0.9 1.0 0.3 0.4 0.6 0.5 0.04
2019 A 0.9 1.0 1.1 0.3 0.4 0.7 0.5 0.05
2020 A 0.8 0.9 1.0 0.3 0.4 0.6 0.5 0.04
2021 F 0.9 1.0 1.1 0.3 0.4 0.7 0.5 0.04
2022 F 1.0 1.1 1.2 0.3 0.5 0.8 0.6 0.05
2023 F 1.1 1.1 1.3 0.3 0.5 0.8 0.7 0.05
2024 F 1.1 1.2 1.4 0.3 0.6 0.9 0.7 0.05
2025 F 1.2 1.3 1.5 0.4 0.6 0.9 0.8 0.05
2026 F 1.3 1.4 1.6 0.4 0.7 1.0 0.8 0.05
2027 F 1.4 1.5 1.7 0.4 0.7 1.1 0.9 0.05
2028 F 1.5 1.6 1.8 0.5 0.8 1.2 0.9 0.05
2029 F 1.7 1.7 1.9 0.5 0.8 1.3 1.0 0.05
CAGR
(2015
to
2019) 7.8% 7.0% 6.7% 6.8% 7.3% 7.6% 7.4% 4.8%
CAGR
(2021
to
2029) 8.5% 7.8% 7.4% 7.5% 8.0% 8.4% 8.1% 3.0%

Railways
The domestic railways bearings market accounted for a share of 17.7% of the total domestic
bearing market in 2020. It stood at USD 0.6 billion in 2015 and grew at a CAGR of 7.8% during
2015 to 2019. Growing investments in railways and thrust provided by the government on
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infrastructure included railways bodes well for bearings industry. The domestic railways bearings
market is expected to grow to USD 1.7 billion in 2029 at a CAGR of 8.5% during 2021 to 2029.
Construction
The domestic construction bearings market accounted for a share of 13.7% of the total domestic
bearing market. It stood at USD 0.5 billion in 2015 and grew at a CAGR of 7.6% during 2015 to
2019. Favourable policies introduced by the government for development and improvement of
infrastructure including affordable housing is likely to positively impact the bearings industry. The
domestic construction bearings market is expected to grow to USD 1.3 billion in 2029 at a CAGR
of 8.4% during 2021 to 2029.
Mining
The domestic mining bearings market accounted for a share of 11.1% of the total domestic
2015 to 2019. It is expected to grow to USD 1 billion in 2029 at a CAGR of 8.1% during 2021 to
2029.
Electrical & Electronics
The domestic mining bearings market accounted for a share of 9% of the total domestic bearing
market in 2020. It stood at USD 0.3 billion in 2015 and grew at a CAGR of 7.3% during 2015 to
2019. It is expected to grow to USD 0.8 billion in 2029 at a CAGR of 8% during 2021 to 2029.
Agriculture
The domestic mining bearings market accounted for a share of 11.1% of the total domestic
2015 to 2019. It is expected to grow to USD 0.5 billion in 2029 at a CAGR of 7.5% during 2021
to 2029.
5.4 Trade Scenario

With respect to trade scenario of ball or roller bearings, India remained a net importer
during 2016 to 2020. India exported USD 388.7 million ball or roller bearings in 2016 and
grew at a CAGR of 4.2% during 2016 to 2020 to USD 458 million in 2020. On the other
hand, India imported USD 890.6 million ball or roller bearings in 2016 and grew at a CAGR
of -1.6% during 2016 to 2020 to moderate to USD 834.3 million in 2020.
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Chart 41: Trend in India's exports & imports of ball or roller bearings (in USD million)
1,235.1
1,078.1
963.1
890.6
834.3
573.9 576.9
517.4
458.0
388.7
2016 2017 2018 2019 2020
Exports Imports
Source: United Nations Comtrade
With respect to exports, the top 5 countries that India exported ball or roller bearing to
accounted for a share of 59.7% in 2020 out of which the largest share was held by USA
at 20.2%, followed by Germany at 19.7%. China accounted for a share of 10.7% followed
by France and UAE at a share of 5.6% and 3.5% respectively as show in the chart below.
With respect to imports, the top 5 countries that India imported ball or roller bearings
from accounted for a share of 77.3% in 2020 out of which China accounted for the largest
share at 42.7% followed by Germany at 16%. Japan accounted for a share of 10.1%
followed by USA and Singapore at a share of 4.5% and 4.0% respectively as shown in the
chart below.
60
Chart 42: Country wise export mix of ball Chart 43: Country wise import mix
or roller bearings in 2020 of ball or roller bearings in 2020
20.2%
22.7%
40.3%
42.7%
4.0%
19.7% 4.5%
10.1%
3.5%
5.6% 10.7% 16.0%
USA Germany China Germany Japan
China France
USA Singapore Others
United Arab Emirates Others
Source: United Nations Comtrade
5.5 Government Initiatives
Some of the key policies that the government introduced for major end user industries of
bearings industry are stated below. They are indirectly expected to benefit the bearings
industry.
5.5.1 Production Linked Incentive (PLI) scheme
In the Union Budget 21-22, the government announced a financial outlay of Rs 1.97 lakh
crores for Production Linked Incentive (PLI) scheme for 13 key sectors for a period of 5
years starting from FY22. This is line with the vision of the government of an
‘Aatmanirbhar Bharat’. The objective of this scheme is to encourage domestic
manufacturing in the country and help them become globally competitive so as to create
global Champions in manufacturing. As a result of PLI schemes, it is estimated that the
minimum production in the country will be over USD 500 billion in 5 years.
The 13 sectors include already existing sectors that were approved in March, 2020 as
stated in the table below.
61
Chart 44: Financial outlay under PLI for existing 3 sectors
No Sectors Implementing Financial

Ministry/Department Outlay (in Rs
crores)
1 Mobile Manufacturing and Specified Electronic Components MEITY 40,951
2 Critical Key Starting materials/Drug Intermediaries and Active 6,940
Pharmaceutical Ingredients
Department of Pharmaceuticals
3 Manufacturing of Medical Devices 3,420
Total 51,311
Source: Press release by PIB
The PLI schemes for remaining 10 sectors was approved in November 2020 as follows:
Chart 45: Financial outlay under PLI for 10 sectors
Priority Sectors Implementing Ministry/Department Financial Outlay (in

Rs crores)
1 Advance Chemistry Cell (ACC) NITI Aayog & Department of Heavy Industries 18,100
Battery
2 Electronic /Technology Ministry of Electronics & Information Technology 5,000

Products
3 Automobiles & Auto Department of Heavy Industries 57,042
Components
4 Pharmaceutical Drugs Department of Pharmaceuticals 15,000

5 Telecom & Networking Department of Telecom 12,195
Products
6 Textile Products: MMF Ministry of Textiles 10,683

segment and technical textiles
7 Food products Ministry of Food Processing Industries 10,900
8 High Efficiency Solar PV Ministry of New & Renewable Energy 4,500
Modules
9 White Goods (ACs & LEDs) Department for Promotion of Industry & Internal 6,238
Trade
10 Speciality Steel Ministry of Steel 6,322

Total 1,45,980
Source: Press release by PIB
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5.5.2 National Infrastructure Pipeline (NIP)
The government recently announced in August 2020 the National Infrastructure Pipeline
(NIP) to achieve the GDP of USD 5 trillion by 2024-25. NIP includes both economic and
social infrastructure project and the total outlay under this scheme is Rs 111 lakh crores.
This scheme is expected to attract investments in the following sectors and contribute to
the growth of the sectors and the overall economy.
Chart 46: Sector wise breakup under NIP
Source: National Infrastructure Pipeline, CareEdge Research
63
5.5.3 National Auto Policy 2018
In February 2018, The Department of Heavy Industry (DHI), Ministry of Heavy Industries &
Public Enterprises (MoHI&PE) released the draft National Auto Policy (NAP).
Vision: “To provide a long-term, stable and consistent policy regime and to have a clear
roadmap for the automotive industry, making India a globally competitive auto R&D and
manufacturing hub and achieving the targeted objectives of green mobility”
Mission: The National Auto Policy is envisaged to achieve the following:
• To propel India as an automotive industry amongst the top 3 nations in the world in
engineering, manufacturing and export of automotive vehicles and components.
• To scale-up exports to 35-40% of the overall output and become one of the major automotive
export hubs in the world.
• To enable the automotive sector to become one of the largest employment creation
engines.
• To enable the automotive sector in India to become a global hub for research &
development.
• To drive the automotive sector in India to adopt safe, clean and sustainable technologies.
Objectives: The objectives of the National Auto Policy are:

• Increase contribution to GDP to support the growth of the automotive industry in India and
become one of the major contributors to the country’s GDP and comprise a considerable
proportion of the manufacturing sector GDP by 2026
• Increase exports to scale-up exports to 30-40% of the overall output over the next decade and
improve the brand recognition, competitiveness and technological advancement of the Indian
automotive industry across the world
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5.5.2 National Automotive Testing and R&D Infrastructure Project (NATRiP)
The National Automotive Testing and R & D Infrastructure Project (NATRiP) is an initiative
of the Government of India in the automotive sector. The aim of this Project is to
improve the core competencies in Automotive sector in India and facilitate seamless
integration of Indian Automotive industry with the world as also to position the country
prominently on the global automotive map.
The vision of this project involves:
• Deepen manufacturing
• Encourage localized R&D
• Boost exports
• Converge India’s unparalleled strengths in IT and electronics with automotive
engineering sectors, to firmly place India in USD six trillion global automotive business.
The project has set the above vision keeping in mind certain facts,
Ministry of Heavy Industries & Public Enterprises, Government of India, has constituted
NATRIP Implementation Society (NATIS), an autonomous body, for the execution of
National Automotive Testing and R&D Infrastructure Project (NATRIP). NATIS has been
entrusted to set up state of the art, Automotive Test facilities at six locations across India, with an
investment of Rs. 3,727 Cr. The project involves collaboration among the Government of India,
a number of State Governments and Indian Automotive Industry to create a state-of-the-art
Testing, Validation and R&D infrastructure in the country.
Four new centers have been set up in Manesar (Haryana), Chennai (Tamil Nadu), Indore
(Madhya Pradesh) and Silchar (Assam). The two existing facilities at Pune and
Ahmednagar have been upgraded with the new technologies.
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5.5.3 The Automotive Mission Plan 2016-26
The Automotive Mission Plan 2016-26 (AMP 2026) is the collective vision of
Government of India (Government) and the Indian Automotive Industry on where
the Vehicles, Auto components, and Tractor industries should reach over the next
ten years in terms of size, contribution to India’s development, global footprint,
technological maturity, competitiveness, and institutional structure and capabilities.
5.5.4 National Electric Mobility Mission Plan 2020
Launched in year 2013, it is one of the most important and ambitious initiatives
undertaken by the Government of India that has the potential to bring about a
transformational paradigm shift in the automotive and transportation industry in the
country. This is a culmination of a comprehensive collaborative planning for promotion
of hybrid and electric mobility in India through a combination of policies aimed at
gradually ensuring a vehicle population of about 6-7 million electric/hybrid vehicles in
India by the year 2020 along with a certain level of indigenization of technology ensuring
India’s global leadership in some vehicle segments. It is a composite scheme using
different policy-levers such as:
• Demand side incentives to facilitate acquisition of hybrid/electric vehicles

• Promoting R&D in technology including battery technology, power electronics,
motors, systems integration, battery management system, testing infrastructure,
and ensuring industry participation in the same
• Promoting charging infrastructure
• Supply side incentives
Chart 47: Automotive Mission Plan projections
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• Encouraging retro-fitment of on-road vehicles with hybrid kit
Current policy framework/regulations pertaining to Electric Vehicles industry
Automotive industry globally is at the cusp of a major transformation. Growing concerns

for environment and energy security clubbed with rapid advancements in technologies for
powertrain electrification, increasing digitalization, evolution of future technologies and
innovative newer business models and ever-increasing consumer expectations are
transforming the automotive business. One of the key facets of such a change is the rapid
development in the field of electric mobility which might transform the automotive
industry like never before. The government had launched FAME (Faster Adoption and
Manufacturing of (Strong) Hybrid and Electric Vehicles in India) in 2015 with the objective of
promoting and facilitating adoption of Electric Vehicles in India. The second phase of the
scheme FAME II was launched from April, 2019 for three years with a total budgetary
support of Rs 10,000 crore.
On 11 June 2021, the Ministry of Heavy Industries and Public Enterprises released a
notification, making partial modifications to the FAME-II Scheme. The modifications
indicate that the government is focusing on E2Ws to push the adoption of EVs in India.
As per the notification:
• Incentives on E2Ws have been increased from INR 10,000/kWh to INR 15,000/kWh
• Cap on incentives for E2Ws increased from 20% of cost of vehicle to 40% of cost of
vehicle
Further, on 25 June 2021, the Ministry of Heavy Industries and Public Enterprises
released another notification, notifying about the extension of the FAME II scheme till
31 March 2024.
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5.6 Performance of key end user industries
Automotive
The automotive sector is considered to be one of the major drivers of economic growth
due to its linkages with multiple industries. The growth of this sector benefits commodity
sector as vehicle manufacturing requires steel, aluminum, plastic etc. It also holds
importance for the NBFC/Banks in form of automobile financing. Moreover, it is a crucial
source of demand for oil & gas industry. The automobile industry in India is one of the
largest in the world with sales of about 18.6 million units in FY2021. Its contribution to
the GDP of India stands at around 7%. There has been a consistent decline in sales over
the past two years, FY20 was impacted by the consumption slowdown and FY21 was
impacted by the impact of Covid-19 induced lockdown restrictions apart from an overall
economic slowdown.
Chart 48: Production and sales of automobiles in India (million units)
35.0 30.9
29.1
30.0 26.3 26.4
24.0 25.3 25.0
25.0 21.9 21.5 22.7
20.5
18.6
20.0
14.6
15.0 11.0
10.0
5.0
0.0
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 YTD
Production Domestic Sales
Note: YTD is from April 2021 to November 2021

Source: SIAM
India was the fifth-largest auto market in 2020 and is expected to be the third largest in
terms of volume by 2026. Two wheelers and passenger vehicles dominate the domestic
auto market. Two wheelers and passenger cars contributed to about 81% and 15%
respectively of total automobile sales in FY21.
Across segments of the industry, India is positioned amongst the leading markets,
globally. In volume terms, India ranks as the largest market for two-wheelers as well as
tractors. It is also among the Top-5 and Top-10 markets for Medium & Heavy Commercial
Vehicles (M&HCVs) and Passenger Vehicles (PVs), respectively. The major growth drivers
for the automobile industry in India are the growing household income, favourable
68
demographics with a large proportion of young population, expanding R&D hub and
Government’s support.
Besides growth prospects, India’s favourable Foreign Direct Investment (FDI) policy with
100% FDI through automatic route, relatively low cost of manufacturing, adequate
manpower pool has attracted several foreign OEMs of the industry to invest in India and
set-up manufacturing footprint. This include several big brands such as Hyundai, Nissan,
Toyota, Volkswagen, Maruti Suzuki, etc. Indian automobile industry received Foreign
Direct Investment (FDI) worth US$ 25.84 billion between April 2000 and March 2021.
India is the world’s largest tractor manufacturer and second largest bus manufacturer. It
is also world’s largest two-wheeler and three-wheeler manufacturer.
69
Sales and production forecasts for commercial and passenger vehicles is stated below:
Passenger vehicles
Apart from the current chip shortage, PV sales are expected to be affected from the high
acquisition costs and rising fuel prices. PV OEMs have increased prices of their products 3 times
in the ongoing calendar year due to rising input costs. Domestic steel and aluminum prices have
risen by around 30-40% from December 2020 levels. Domestic PV tyre prices have also risen by
around 3-4% during this period. Prices of automotive paints have also risen at a double digit
pace. In response to that, the OEMs have hiked vehicle prices by upto 12% in the first 8 months
of the calendar year. Such a steep hike in vehicle prices is likely to dampen demand sentiments
of price sensitive buyers.
Furthermore, rising fuel prices will also have a negative impact on the domestic car demand.
Prices of petrol & diesel have crossed Rs.100 per litre on the back of surge in prices of crude oil.
However, the central government is not keen on cutting excise duty levied on fuel. Fuel prices
are unlikely to come down anytime soon.
In addition to the pandemic stress, rising prices of commodities are also adversely impacting the
industry. Most car manufacturers have increased the price of vehicles by 1-6% in April 2021 which
is the second hike in the current year following the first hike in January, 2021. This is likely to
affect the demand. The rise in petrol & diesel prices which have reached to an all-time high are
further weakening the demand sentiments. With the crude oil prices moving on an upwards
trajectory, fuel prices are expected to remain elevated.
The pandemic has also impacted the taxi aggregators such as Ola & Uber. Many drivers with
these companies have defaulted on their EMIs due to which banks have seized their vehicles and
sold in the second-hand market. This will keep the demand for newer fleet addition low and will
impact PV sales.
The passenger vehicle sales in India, though affected by second wave, is expected to be higher
in FY22 than FY2021 due to a lower base effect and lesser period of lockdowns expected in FY22.
The forecasted sales of PV are depicted below:
70
Chart 49: Sales forecast for passenger vehicles in India
2019-20 2020-21 2021-22P 2022-23P 2023-24P 2024-25P 2025-26P

Total Sales 34,35,637 31,15,857 33,38,285 37,04,406 39,16,547 41,25,781 43,34,648
Passengers Cars & Vans 23,06,210 19,17,282 19,87,738 21,86,065 23,05,090 24,21,133 25,40,338
Utility Vehicles 11,29,427 11,98,575 13,50,547 15,18,341 16,11,458 17,04,648 17,94,310
Total Sales Passengers Cars & Vans Utility Vehicles
Source: CMIE
Commercial Vehicles
With the lockdown restrictions imposed by various states across the country in April and May,
2021, infrastructure and construction activities have been hampered which will adversely impact
the demand for MHCV segment. In addition to this, high diesel prices and subdued freight rates
due to lower demand will squeeze the margins for fleet operators, thus decreasing their
purchasing power and impacting CV sales. Further, the commissioning of most sections of the
Indian Railway’s dedicated freight corridor (DFC) will likely affect the sales of trucks and trailers
in 2021 to some extent. Post commission of DFC, railways will be a cheaper option than road to
transport goods. In addition, most of the corporates, schools & colleges are likely to remain closed
for most of the year which will keep the demand for passenger carriers low. However, the LCV
segment is expected to witness lesser adverse impact as the need to transport essential goods
such as grocery within the cities and e-commerce activities may sustain demand. However, the
sales of both the MHCV and LCV segments in FY2022 are expected to be higher than last year as
central government is of the view that lockdown should be the last resort, therefore keeping the
possibility of complete lockdown very low. Further, some government’s initiatives such as Vehicle
scrappage policy, PLI, greater spending on infra projects may help in reviving the sector. The
forecasted sales for CVs is depicted below:
71
Chart 50: Sales forecast of commercial vehicles in India
2019-20 2020-21 2021-22P 2022-23P 2023-24P 2024-25P

Total 7,77,972 6,18,893 6,97,348 7,59,394 7,96,755 8,34,733
MHCV 2,46,761 1,78,236 1,91,065 2,11,187 2,22,774 2,35,604
LCV 5,31,211 4,40,657 5,06,283 5,48,207 5,73,981 5,99,129
Total MHCV LCV
Source: CMIE
72
Electric Vehicles (EVs)

There is a growing thrust on adoption of electric vehicles (EV) across the globe amid increasing
carbon emissions which have serious repercussions including global warming. As India is
significantly dependent on crude oil imports and various cities in India are facing pollution
menace, the Indian government has also acknowledged the need to promote EVs. It has launched
various favorable polices aimed at faster adoption of EVs in India. However, the deployment of
EVs is still in nascent stage in India with penetration of electric 2Ws and 3Ws at 1.3% and 34.3%
in FY21 respectively. Meanwhile, 4Ws have limited penetration in the country. The government
is looking to increase penetration across vehicle segments with 2Ws and 3Ws expected to
continue to lead the EV market in India.
Railways
Indian railways have one of the largest rail networks in the world spread across 67,956 kms as
on FY20 with 13, 169 passenger trains and 8,479 goods trains running daily in FY20. The rail
network is suitable for transportation of bulk commodities and movement over long distances.
Investments have been made by Indian Railways to improve safety, enhance speed of trains,
enhance freight efficiency, improve passenger amenities and ensure better connectivity.
In FY20, 8,086 million passengers travelled through trains as compared with 8,107 million
passengers in FY16. Similarly, the Indian railways transported 1,208 million tonnes of freight in
FY20 as compared with 1,102 million tonnes of freight in FY16. Although passenger and freight
traffic has been growing sequentially, it moderated in FY20 as compared to the corresponding
period a year ago. Moreover, the industry was adversely affected due to the outbreak of Covid-
19 and consequent imposition of restrictions on mobility.
However, with ease in restrictions, the industry has started showing signs of improvement. In
addition, the thrust provided by the various schemes launched by the government is expected to
positively impact the industry. The government recently announced in August 2020 the National
Infrastructure Pipeline (NIP) to achieve the GDP of USD 5 trillion by 2024-25. NIP includes both
economic and social infrastructure project and the total outlay under this scheme is Rs 111 lakh
crores, out of which the railways sector accounts for a share of 12%. NIP is expected to attract
more investments in the sector and lead to creation and enhancement of rail infrastructure which
augurs well for the railways industry.
Construction Equipment
The Indian construction equipment (CE) industry was adversely impacted due to second wave of
Covid-19. The situation is expected to improve with the accelerated vaccination programme and
other measures being adopted by the government in the near term. The market for CE will follow
an upward trend in the medium to long term, with BS(CEV)-IV emission norms getting rolled out,
the CE industry is looking beyond Middle East and Africa and enter in the developed country
market.
73
India offers significant potential as an OEM hub due to lower costs and the availability of skilled
labour, new equipment manufacturers are expected to establish bases in India. Less than 40 per
cent of India highway is four lanes, hence there is immense scope for improvement. Increased
construction activities create favourable conditions in the earthmoving machinery segment. There
is a scope for the localisation of parts as some of the bearings, seals are still imported.
Despite the current challenges that the sector faces due to the pandemic, India presents great
opportunities for the future. From the mid and long-term perspective, given the government’s
thrust on monetisation through disinvestment and huge investment through projects under NIP,
we expect the industry to show stronger recovery going forward.
With the Indian government proposing significant spend on infrastructure, there are multiple
opportunities for the construction equipment industry on the horizon. Increased government
spends on infrastructure development should help sustain demand for construction equipment
and aid the industry in returning to growth. Infrastructure creation also opens opportunities for
allied industries like raw material, quarrying and equipment manufacturing, among others.
In the near future in India, the bulk of construction growth is likely to come from growth in
transportation infrastructure (roads, rail, airports, ports), urban infrastructure (mass rail transit
systems, water supply and sanitation, urban housing) and rural infrastructure (rural roads,
irrigation, rural housing)—three important sectors for driving CE demand.
Mining
Mining industry is one of the core industries in India. It provides basic raw materials to many
major industries such as power, steel, cement, capital goods, petroleum and natural gas as well
as service sector which require computing gadgets made of quartz, lithium, lead, zinc, silver etc.
India is well endowed in minerals and produces as many as 95 minerals, which includes 4 fuels,
10 metallic, 23 non-metallic, 3 atomic and 55 minor minerals (including building and other
materials). The number of mines which reported mineral production (excluding atomic, fuel, and
minor minerals) in India was 1,303 in 2019-20 as against 1,427 in the previous year.
In India, mining has a nearly 1.2x-1.4x multiplier effect on industrial production. As per Central
Government’s estimates, the national mining sector provides direct employment to more than a
million people contributing significantly to livelihood creation.
The spread of Covid-19, right at the beginning of the financial year, has led to disruptions across
industries leading to fall in volume of minerals produced during the year.
Mining activity is expected to grow in the range of 6-7% in the period of next five years. The
growth in mining sector will be driven by the infrastructure, building and construction, automotive,
power and capital goods sectors. India’s automotive sector is one of the largest in the
world. Infrastructure development activities and urbanisation will drive demand for steel, zinc and
aluminium which in turn will create demand for minerals. Minerals like manganese, lead, copper,
and alumina are estimated to witness huge growth in the coming years. This in turn will drive
demand for mining equipments in the country.
74
Wind
With a total installed capacity of 40 GW (as of September, 2021), the country presently ranks
fourth in the world for wind installed capacity. The wind industry's growth has resulted in a robust
ecosystem, project operating capabilities, and a manufacturing base of around 10,000 megawatts
per year.
Chart 51: Rise of Wind Power in India (GW)
Capacity Additions (GW)

Led by strong
5.5
capacity add. In
A.P., Karnataka,
& Gujarat.
Extended
3.4 timeline for
Re-instatement execution led
GW
of GB to slowdown Covid-19
2.6
2.3 Expiration restrictions
of feed in
tariff 1.8 1.6 1.5
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Source: MNRE
Capacity additions in the wind, have benefited from accelerated depreciation and Generation
Based Incentive (GBI) benefits in the past which supported robust capacity additions, apart from
the presence of feed-in-tariff. Hence the capacity additions remained strong between 2014-17
with fluctuations due to change in state specific regulations.
The transition to competitive bidding from feed-in-tariff mechanism affected wind capacity
additions leading to a drop since FY18. In addition, the Generation Based Incentive (GBI) Scheme
was available for wind projects that were completed before March 31, 2017.
Also, given the highly competitive tariffs of wind sector, unavailability of wind favorable wind sites
etc. played a role in the slowdown in capacity additions for wind sector.
75
Chart 52: Wind Power Installation trends (GW)
37.69 39.48
34.04 35.63
32.28
26.78
Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21
Wind (GW)
Source: MNRE
Solar
In the previous five years, solar power capacity has risen manifold times, from 2.6 GW in March
2014 to 46 GW in Sept, 2021 supported by MNRE. Solar tariffs in India are now highly competitive
and have reached grid parity. The National Institute of Solar Energy estimated the country's solar
potential to be at 748 GW, assuming that solar PV modules cover 3% of the waste land area.
Hence further consistent capacity additions are expected over the medium term due to supportive
government policies, stabilisation of technology and interest from investors.
Solar has outpaced wind by installed capacity as on date. Solar energy accounts for 46 percent
of the renewable energy basket as of September 2021. Over the previous five years, the solar
power industry has experienced strong growth. Over the fiscal years 2017 to 2021, the segment
added 27.8 GW of capacity, registering a CAGR of 26.7 percent, albeit from a low base. However,
solar power additions in Fiscal 2021 were lower, at 5.46 GW (vs. 6.45 GW in Fiscal 2020).
Continued localized restrictions, timetable extensions, and a spike in solar module pricing due to
a lack of upstream components caused a halt in capacity expansion in H2 of 2021. This was
combined with a Covid-19 pandemic-related restriction that suspended on-ground project
execution during H1 2021 due to workforce shortages and supply chain difficulties. Additional
taxation in the form of a safeguard and a higher GST rate slowed capacity increases in FY20.
Solar energy is one of the primary missions of India's National Action Plan on Climate Change,
with the National Solar Mission being one of them. The (NSM) is a major initiative of the Indian
government, with strong participation from states, to encourage environmentally sustainable
growth while addressing India's energy security issues. By 2022, the Mission hopes to have
installed 100 GW of grid-connected solar power plants. To meet this goal, the Indian government
has implemented a number of policies, including the Solar Park Scheme, PM KUSUM, CPSU, Grid
Connected Solar Rooftop Schemes, and others initiatives like Domestic modules production, REC,
RPO, must run status, waiver of ISTS charges etc.
76
Chart 53: Trend in solar installed capacity - GW
Capacity Installed (GW)

JNNSM Phase 2,
NVVN Tranche1 &
state policies Rise in cost due
to safeguard
State Policies 9.3 duty and cost of
which led to large financing Safeguard
capacity Duty`and Covid-
additions, falling 19 impact
panel prices
6.5 6.4
5.5 5.4
Target of 100GW
by 2022, Solar
Park Policy
3
1.1
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Source: CEA
77
5.7 Outlook for Indian bearings industry
The global outbreak of Covid-19 led to imposition of a nationwide lockdown in the country
in the last week of March, 2020. Several industries witnessed sharp fall in demand and
grappled with issues such as reverse migration, staggered shifts and bottlenecks in
logistics. Covid-19 induced restrictions adversely affected end user industries of bearing
components such as automotive, aviation, railways, construction and mining to name the
major end user industries. Several industry players put their capex plans on hold and
focused on ensuring continuity of their existing business operations. All of these factors
are estimated to have led to fall in demand for bearings. However, as restrictions were
gradually lifted across the country and economic activities resumed, H2FY21 fared better
than H1FY21. The recovery witnessed in second half of FY21 was affected due to the
second wave of Covid-19 and subsequent imposition of localized restrictions. Gradually,
as cases were brought under control and state wise restrictions were lifted, demand
started picked up from June 2021 onwards.
However, as restrictions were gradually lifted across the country and economic activities
resumed, H2FY21 is estimated to have fared better than H1FY21. The recovery witnessed
in second half of FY21 was affected due to the second wave of Covid-19 and subsequent
imposition of localized restrictions. Gradually, as cases were brought under control and
state wise restrictions were lifted, demand started picking up from June 2021 onwards.
Going forward, the demand for bearings is expected to be driven by improvement in

demand from end user industries such as automotive, aviation & aerospace, construction
etc. Further, the thrust provided by the government on infrastructure development is
expected to positively impact bearings industry. For instance, the Production Linked
Incentive (PLI) scheme is expected to attract multinational players to set up their
production facilities in India. Moreover, the growing preference for personal mobility since
the outbreak of Covid-19 will boost the demand for automotive industries and allied
components such as bearings. The domestic bearing market is also expected to have a
positive impact from the shift of production facilities of global auto bearing manufacturers
to emerging geographies such as India.
Moreover, the demand for bearings is also expected to come from growing usage in other
industries such as railways, aviation, construction & mining. Increasing demand for
customized bearing solutions and advancements in technology such as smart bearings will
bode well for the bearings industry.
78
6 Indian Bearing cages market
6.1 Size of Indian Bearing cages market

In terms of revenue, bearing cages market in India accounted for a share of about 4.7% in the
global bearings market in 2020. Further, within Asia Pacific region, the revenues for bearings
market in India accounted for a share of 11.6% of the Asia Pacific region’s revenues.
The Indian bearing cages market stood at USD 186.5 million in 2015 and grew at a CAGR of 7.2%
during 2015 to 2019. The Indian bearing cages market contracted in 2020 owing to the global
outbreak of Covid-19 since end of March 2020 that led to decline in demand from end user
industries of bearing cages and manufacturers witnessed supply chain constraints. However,
going forward, with resumption of economic activities, the Indian bearing cages market is
expected to grow at the highest CAGR of 7.9% amongst the countries within the Asia Pacific
region during 2021 to 2029 and is estimated to be valued at USD 449.6 million in 2029.
Chart 54:Indian bearing cages market (in USD million)
449.6
418.4
389.4
362.5
337.5
314.3
292.8
272.8
246.4 244.4
229.7 225.0
214.2
199.9
186.5

Bearing cages are usually made of materials such as Steel, Brass, Polyamide,
Polyetheretherketone, Phenolic Resin etc. Bearing cage business into large diameter brass and
steel bearing cages are still more concentrated inhouse and there is likely possibility of higher
outsourcing of the same going forward.
79
6.2 Growth Drivers

• Favorable policy and regulatory framework
The government plans to develop India as a manufacturing hub and has introduced
several schemes like Make In India, Production Linked Incentives (PLIs) to attract foreign
players to set up their manufacturing units in the country. The schemes are also aimed at
making Indian manufacturers globally competitive and enhance exports to make India an
integral part of the global supply chain. This in turn is likely to positively impact the bearing
components’ manufacturers including bearing cages.
• Growing demand from end users

In terms of market growth, the domestic mobility industry has lot of potential aided by
factors such as population size, geographical spread and the current low penetration. In
addition, growth in goods mobility segment is being led by the need to establish strong
supply chains between producers and market which will be supported by investments
being made to enhance connectivity by varied modes of transport like roads, railways etc.
Moreover, growing demand for usage of bearings from end user industries such as
aerospace, construction and mining, railways bodes well for bearing cage manufacturers.
• Manufacturers diversifying global supply chain network

Although China is considered as the global manufacturing hub, recent industry
developments such as US-China trade war and the global outbreak of Covid-19 has
highlighted the need for manufacturers to diversify their supply chain network. Several
manufacturers including global bearing players are de-risking their supply chains by
setting up manufacturing units in regions apart from China to emerging economies
including India due to its high market potential and advantage of low-cost manufacturing.
Further, historically, the automobile OEMs were concentrated in the developed nations
and so did the ancillaries and most of the business was done in house by OEMs However,
in recent years, OEMs are increasingly outsourcing the engineering and production to their
suppliers in emerging regions including India which is expected to positively impact
bearing cage manufacturers.
Apart from the demand drivers mentioned above, other key enablers like advancements in
technology with digitization, Internet of Things (IOT) will drive the demand for bearings
components including cages going forward. Moreover, the bearing component manufacturers are
continuously working to develop customized bearings as per end user requirements which is likely
to benefit the bearing cages manufacturers as well.
6.3 Challenges
• Volatile prices of raw materials
Steel is one of the primary raw material used in the manufacturing of bearing components
and its fluctuating prices affects the operational income of bearing component
80
manufacturers. Constant shifts in consumption pattern during the pandemic has caused
high volatility in demand for raw materials which could adversely the manufacturers.
Furthermore, global market places that are volatile can also affect the bearing
manufacturers as it may not possible for them to control additional costs, expenses and
profit when costs of raw materials fluctuate.
The average price of HRC (2.5 mm) and CRC (1mm) grew at a CAGR of 16.6% and 15.9%
respectively from April 2019 to December 2021.
Chart 55: Average domestic steel prices (Rs/tonne)
1,00,000
80,000
CAGR CRC 15.9%
60,000
40,000
CAGR HRC 16.6%
20,000
0
Jul-19
Jul-20
Jul-21
Apr-19
May-19
Jun-19
Apr-20
May-20
Jun-20
Aug-20
Apr-21
May-21
Jun-21
Aug-19
Nov-19
Dec-19
Mar-20
Nov-20
Dec-20
Mar-21
Aug-21
Nov-21
Dec-21
Oct-19
Sep-19
Jan-20
Feb-20
Sep-20
Jan-21
Feb-21
Sep-21
Oct-20
Oct-21
HRC (2.5 mm) CRC (1mm)
Note: price for CRC (1 mm) is not available for the months of April 2020 and May 2020
Source: CMIE
• Increasing EV penetration
For impact of increasing EV penetration on bearings industry, refer to section 2.9 of this
report.
81
6.4 Outlook
The global outbreak of Covid-19 led to imposition of a nationwide lockdown in the country
in the last week of March, 2020. Several industries witnessed sharp fall in demand and
grappled with issues such as reverse migration, staggered shifts and bottlenecks in
logistics. Covid-19 induced restrictions adversely affected end user industries of bearing
components such as automotive, aviation, railways, construction and mining to name the
major end user industries. Several industry players delayed their capex plans on hold and
focused on ensuring continuity of their existing business operations. All of these factors
are estimated to have led to fall in demand for bearing components such as cages.
However, as restrictions were gradually lifted across the country and economic activities
resumed, H2FY21 is expected to have fared better than H1FY21. The recovery witnessed
in second half of FY21 was affected due to the second wave of Covid-19 and subsequent
imposition of localized restrictions. Gradually, as cases were brought under control and
state wise restrictions were lifted, demand is likely to have started picking up from June
2021 onwards.
Going forward, the demand for bearing cages is expected to be driven by improvement in
demand from end user industries such as automotive. Further, the thrust provided by the
government on infrastructure development is expected to positively impact bearings
industry. For instance, schemes like Production Linked Incentive (PLI) is expected to
attract multinational players to set up their production facilities in India. Moreover, the
growing preference for personal mobility since the outbreak of Covid-19 will boost the
demand for automotive industries and allied components such as bearings.
The demand for bearing cages in the country is also expected to come from growing
demand for industrial production coupled with favorable government schemes that are
likely to lead to more investments in the industries and in turn positively affect bearing
cages market. Moreover, with the growth in adoption of technologies and its application
in the bearings industry such as smart bearings are enabling the end users to be able to
efficiently monitor the machinery during its lifecycle which is likely to drive demand for
bearings and hence bearing cages going forward. The demand for application specific
bearing solutions is also expected to augur well for bearings cages market.
In addition, since the US-China trade war and the global outbreak of Covid-19, many
global manufacturers are estimated to diversify their supply chains and opt for China plus
one strategy. China had established itself as a global manufacturing hub and many
companies had set up their production facilities in the country. However, manufacturers
are expected to continue to restructure their supply chain network and move part of their
production lines from China to other emerging regions such as India in a bid to de risk
their supply chain network. Therefore, the domestic bearing cage market is expected to
have a positive impact from the shift of production facilities of global bearing
manufacturers to emerging geographies like India.
82
7 Indian Stamping market
7.1 Overview of Indian stamping market
The APAC region is forecasted to be the second largest growing region in global stampings
market, in which India is estimated to lead with the highest CAGR.
The Indian Stampings market grew at 5.9% CAGR between 2015 to 2019 and was valued
at USD 9.6 billion in 2020. It is forecasted to grow at a 7.1% CAGR between 2021-2029
to reach USD 17.9 billion by 2029.
Chart 56: Indian Stamping market Revenue in USD billion
20.0
17.9
18.0 16.7
15.7
16.0 14.7
13.8
14.0 12.9
12.1
12.0 11.4
10.5 10.4
9.9 9.6
10.0 9.3
8.3 8.8
8.0
6.0
4.0
2.0
0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Source: Stampings Market – Global Insights, Growth, Size, Comparative Analysis, Trends and Forecasts,
2021-2029 by Research N Reports
83
7.2 Key End user industries in India

The Automotive industry was leading the Indian Stamping market in 2020 with USD 1.7
billion in revenue. It is forecasted to reach USD 3.2 billion in revenue by 2029, growing at
a CAGR of 7% between 2021-2029.
The industry which is expected to grow at highest CAGR is Medical, estimated to expand
at 7.6% CAGR between 2021-2029 and reach USD 1.7 billion revenue in 2029.
• Stamping is used to produce a range of precision parts and components for the
equipment used in medical industry.
• The Agriculture industry is estimated to grow at 7.4% CAGR between 2021-2029.
The increased use of metal stamping components in manufacturing automated
processing equipment in Agriculture and anticipation of further developments in
the industry might be the reason for estimated surge in growth.
• The increased demand for phones and other consumer electronics is anticipated
to grow the Electrical and Electronics industry in the coming years. This industry
is forecasted to grow at 7.2% CAGR between 2021-2029 and reach USD 3.1 billion
in revenues by 2029.
• The Automotive industry uses stamping in manufacturing body panels and other
parts for light commercial vehicles, heavy trucks etc. As the vehicle production
increases, the use of stamping is also expected to increase. The Automotive
industry is forecasted to grow at 7% CAGR between 2021-2029.
84
Chart 57: Indian Stamping market by industry (in USD billion)
Con
sum Auto Power Electrical
Agric Med Constr Furnitu Material Other
Industry er motiv Transmi and
ulture ical uction re Handling s
Goo e ssion Electronics
ds
2015 (A) 1.1 0.2 1.5 0.8 0.9 0.6 0.5 1.3 1.4 0.1
2016 (A) 1.1 0.2 1.6 0.8 1.0 0.6 0.5 1.3 1.5 0.1
2017 (A) 1.2 0.3 1.7 0.9 1.0 0.7 0.5 1.4 1.6 0.1
2018 (A) 1.3 0.3 1.8 0.9 1.1 0.7 0.6 1.5 1.7 0.1
2019 (A) 1.4 0.3 1.9 1.0 1.2 0.8 0.6 1.6 1.8 0.1
2020 (A) 1.3 0.3 1.7 0.9 1.1 0.7 0.5 1.4 1.6 0.1
2021 (F) 1.4 0.3 1.9 1.0 1.2 0.7 0.6 1.5 1.8 0.1
2022 (F) 1.5 0.3 2.0 1.1 1.3 0.8 0.6 1.7 2.0 0.1
2023 (F) 1.6 0.3 2.2 1.2 1.4 0.9 0.7 1.8 2.1 0.1
2024 (F) 1.7 0.3 2.3 1.2 1.5 0.9 0.7 1.9 2.2 0.1
2025 (F) 1.8 0.3 2.5 1.3 1.5 1.0 0.8 2.0 2.4 0.1
2026 (F) 2.0 0.4 2.6 1.4 1.7 1.0 0.8 2.2 2.5 0.1
2027 (F) 2.1 0.4 2.8 1.5 1.8 1.1 0.9 2.3 2.7 0.1
2028 (F) 2.2 0.4 3.0 1.6 1.9 1.2 0.9 2.5 2.9 0.1
2029 (F) 2.4 0.4 3.2 1.7 2.0 1.2 1.0 2.6 3.1 0.1
CAGR
4.9 6.4
(2015- 6.3% 5.9% 6.1% 5.4% 5.6% 5.8% 6.0% 5.0%
% %
2019)
CAGR
6.0 7.6
(2021- 7.4% 7.0% 7.3% 6.6% 6.7% 6.9% 7.2% 5.2%
% %
2029)
85
Chart 58: Indian Stamping by key end user by market share
0.8%
1.0%
2020 (A) 2029 (F)
13.1% 13.5%
17.2%
17.1%
18.0% 17.9%
15.0%
14.8%
5.5%
5.6% 11.3%
11.1% 6.9%
7.2%
9.4% 9.8%
2.6% 2.4%
Agriculture Automotive Agriculture Automotive
Construction Consumer Goods Construction Consumer Goods
Medical Furniture Medical Furniture
Power Transmission Material Handling Power Transmission Material Handling
Electrical and Electronics Others Electrical and Electronics Others
Note: The patterned industries above include different automobile segments like Agricultural thatching equipment,
tractors and Construction equipments like lighting components, shields, trusses. Etc
86
7.3 Growth Drivers for the Indian Stamping market
1. Increase in investments in Automotive segment

In 2020, India was the fifth-largest auto market, with ~3.49 million units combined sold
in the passenger and commercial vehicles categories and seventh-largest manufacturer of
commercial vehicles in 2019. The increasing investments on new production facilities are
expected to increase the demand for motor stamped parts in the coming years in
automotive hub countries like India.
2. India as the alternate manufacturing base

India is a lucrative market which will be influenced by the growing production of
components. The trade wars between China and the U.S is expected to propel the
manufacturers to look out for alternate production base countries like India.
3. Rise in focus on manufacturing

The rise in manufacturing due to Government initiatives like Make in India will help in
growth of small and medium enterprises to boost metal stamping. The government aims
to develop India as a global manufacturing centre and a Research and Development (R&D)
hub. The initiatives under SAMARTH Udyog, NATRiP and FAME are designed to enable the
industry to be at par with global standards.
4. Expansion of Indian Construction Equipment (CE) industry

India has recently become the third largest Construction Equipment (CE) market globally,
surpassing Japan. In the CE segment, material handling is the second largest segment
after earth moving equipment. Cranes are the largest category within the material
handling equipment. The demand for pick-and-carry cranes is expected to continue due
to the rise in the number of infrastructure projects. Continuing focus on infrastructure is
expected to drive the investments in the sector and hence the demand for stampings
overall.
87
7.4 Indian Stamping market Outlook

The rapid spread of Covid-19 pandemic had a devastating impact on the Indian economy.
All the major sectors, except agriculture were badly hit due to the pandemic. The Indian
economy was already facing the headwinds before the onset of second wave. However,
India’s recovery gained momentum after fast paced vaccination drives in the country. The
improving Covid-19 pandemic situation amid high business and consumer spirits has
delivered sustained economic recovery in October, 2021. The industrial production
expanded in August to reach 103% of its pre-pandemic August 2019 level with
manufacturing witnessing full recovery in most of the use-based categories.
In Asia Pacific, India is forecasted to grow at the highest CAGR of 7.1% between 2021-
2029. The Stamping market has growth potential, mainly due to the growth of the
automotive and electrical and electronics sector in India. Favorable conditions from
manufacturing sector through Make in India and several governments initiatives are
helping in growth of automotive sector in India.
As agriculture and allied industries are largest sectors in India, technological advances in
agricultural equipment will lead to increased use of stamping in. Further, Government
infrastructure projects like the National Infrastructure Pipeline will benefit the stampings
industry.
Increase in B2B sales channels and websites like IndiaMart provide opportunities to the
sellers to reach high demand markets and expand.
88
8 Brief of solar industry
8.1 Overview of Solar Industry

India has a large amount of solar energy potential. Approximately 5,000 trillion kWh of
energy is incident over India's geographical area each year. Solar photovoltaic electricity
can be successfully harvested, allowing for massive scalability in India. Rural electrification
will benefit from off-grid, decentralized, and low-temperature applications. Millions of
people in Indian communities have profited from solar energy-based decentralized and
distributed applications that satisfy their cooking, lighting, and other energy demands.
The social and economic benefits include less drudgery for rural women and girls who go
great distances to harvest fire wood.
Furthermore, throughout the years, India's solar energy sector has emerged as a key
participant in grid-connected power generation capacity. It contributes to the
government's objective of sustainable growth while emerging as a key anchor in meeting
the nation's energy demands and ensuring energy security.
Chart 59: Trend in Solar Capacity Additions in India
Capacity Installed (GW)

JNNSM Phase 2,
NVVN Tranche1 &
state policies Rise in cost due
to safeguard
State Policies 9.3 duty and cost of
which led to large financing Safeguard
capacity Duty`and Covid-
additions, falling 19 impact
panel prices
6.5 6.4
5.5 5.4
Target of 100GW
by 2022, Solar
Park Policy
3
1.1
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Source: CEA, CareEdge Research
89
Chart 60: State-wise estimation Solar Energy Potential and installed capacities in the country
Sl. No. State/UT Solar Potential (MWp) Installed capacity

(MW) as on
September, 2021
1. Andhra Pradesh 38,440 4,380
2. Arunachal Pradesh 8,650 11
3. Assam 13,760 68
4. Bihar 11,200 190
5. Chhattisgarh 18,270 502
6. Delhi 2,050 211
7. Goa 880 18
8. Gujarat 35,770 6,093
9. Haryana 4,560 739
10. Himachal Pradesh 33,840 63
11. Jammu & Kashmir 1,11,050 47
12. Jharkhand 18,180 87
13. Karnataka 24,700 7,512
14. Kerala 6,110 327
15. Madhya Pradesh 61,660 2,673
16. Maharashtra 64,320 2,540
17. Manipur 10,630 12
18. Meghalaya 5,860 4
19. Mizoram 9,090 8
20. Nagaland 7,290 3
21. Odisha 25,780 430
22. Punjab 2,810 1,094
23. Rajasthan 1,42,310 8,911
24. Sikkim 4,950 5
25. Tamil Nadu 17,670 4,738
26. Telangana 20,410 4,036
27. Tripura 2,080 14
28. Uttar Pradesh 22,830 2,032
29. Uttarakhand 16,800 553
30. West Bengal 6,260 164
31. UTs 790 197
TOTAL 7,48,990 47,666
Source: Annual Report 2020-21 MNRE
India has estimated the country's solar potential to be at 739 GW while the installed capacity is
47 GW, assuming that solar PV modules cover 3% of the waste land area (Refer table above).
90
8.1.1 Solar Capacity Additions trends (Roof top and ground mounted)
Solar power continues to be a key source of new renewable energy capacity. The breakup of
installed capacities in ground-mounted and roof-top capacities are as follows:
Chart 61: Capacity additions in solar rooftop and solar ground mounted (MW)
Sector Cumulative Achievements Cumulative as on

Achievements (Apr-Oct 2021) 31.10.2021
as on 31.3.21
Solar Power- Ground Mounted 35,645 4,588 40,234

Solar Power- Roof Top 4,439 1,572 6,012
Off-grid 1,151 268 1,419
Total 41,235 6,428 47,665
Source: MNRE
As seen in the above table, capacity additions in ground mounted is far higher than that of rooftop.
While ground-mounted solar capacities benefit from favorable central and state policies, roof-top
capacity additions have been slow. Key reasons being the disintegrated policies between the
center and the different states.
The Ministry of Power has limited net metering to 10Kw or less in December 2020 to push larger
units towards using ‘gross' metering. All of the energy generated by the rooftop system is sent
into the grid here. The company is reimbursed at a certain rate. It must continue to obtain power
from the grid at the standard tariff. The payback period of a solar system would rise from 3 to 4
years to 5 to 6 years on average if any of the major industrial states switched to gross metering.
Discoms in general have also not been favorable towards supporting rooftop solar for 2 reasons.
One, the consumers who invest in rooftop are the larger consumers, whom discom prefer since
they are financially better and tend to pay their bills on time. When bulk consumers start
generating their own electricity, it affects the revenue of discoms. The other reason is net
metering pays the consumer for power at the same rate as they to discom, even though discom
have a higher generation costs.
8.1.2 Trends in Solar Tariffs

The last six years, since April 2014 have also witnessed a steep decline in solar tariffs from Rs.
6.47/ Kwh in 2013-14 to Rs. 1.99/Kwh in December 2020, similar decrease was noticed in wind
power when procurement model changed from Feed in Tariffs to bidding in 2017. This is driven
by lower capital cost per megawatt because of advancement in panel design, enabling a higher
capacity utilization factor.
91
Chart 62: Trend of decreasing Tariff (in Rs/Kwh)
5.9 5.9 5.8

6.5 5.4
6.2
4.3 3.0
2.8 2.8
3.3
2.4 2.4
2.4 2.0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Solar Power Wind Power
Source: MNRE Annual report
8.2 Outlook
Solar capacity addition witnessed a marginally slower pace in FY21 due to the Covid-19. However,
capacity additions have picked up pace sharply this year – there are already capacity additions of
about 6 GW in the first half of FY22 and the momentum is expected to continue in the second
half.
Starting April 1, 2022, the Ministry of New and Renewable Energy (MNRE) has imposed a basic
customs tax (BCD) of 40% on solar modules and 25% on solar cells. The April 2022
implementation date assures that currently contracted bids will not be harmed, and renewable
energy providers will be able to factor in the new cost of solar cells and modules in future bids.
Hence to meet the BCD timelines, there has been an increased pace of commissioning this year,
as developers hurry to complete power purchase agreements (PPAs) and then sign equipment
orders before the new duty cycle begins.
The pace of commissioning of new capacities is expected to continue over the medium term, with
push from the central government and supported by newer technologies such as hybrids and
batter storage apart from continuing low capital costs.
92
Chart 63: Trend and outlook for installed capacity of ground-mounted solar (GW)
Consistent growth
Sharp uptick in capacity expected especially
additions in FY22, post from central 85-95
Covid-19 and due to BCD allocations GW
timeline
53
46 CAGR of
40 17% to
35 21%
28
22
Mar, 2018 Mar,2019 Mar,2020 Mar,2021 Sept,2021 Mar,2022 Mar,2025 (P)

(est)
Note: Mar in the chart above refers to 31st March

Source: CEA, CareEdge Research
8.2.1 Growth Drivers
1. Cost-competitiveness of solar tariffs supported by falling capital costs

Solar tariffs reaching grid parity supported by falling cost of solar modules is one of
the major reasons driving the industry growth. One of the critical factors driving the
adoption of solar PV in the country has been the rapid drop in prices of solar panels
in recent years, which has dropped by more than 52 percent between 2010 and 2019.
As seen in the chart below, there has been a downward trend in the price with a fall
of 37% from 2016-17 to 2020-21.
2. Stabilization of technology and technology innovations

The performance of solar power plants is best defined by the Capacity Utilization
Factor (CUF), which is the ratio of the actual electricity output from the plant, to the
maximum possible output during the year. There has been improved stabilization of
technology with more projects achieving projected PLF levels. The levels have
improved in the year FY21 than FY20, in the FY, there were 54% projects with less
than P90 while in the year they improved to 41%. In addition, innovations such as
wind-solar hybrid, floating PV Projects and storage technologies, etc. are further key
drivers supporting growth.
3. Interest from international investors
93
As they look for substantial equity returns, international investors are flocking to
India's renewable energy and infrastructure projects. Record-low solar power prices,
falling solar module costs, record-low borrowing rates, and the security of
government-backed 25-year power purchase agreements (PPAs) are just a few of the
elements that make renewable energy investment in India extremely appealing.
4. GOI’s focus towards green energy and subsidiary support

As part of its Nationally Determined Contribution (NDC) for the Paris Agreement
obligations, India's government said that by 2030, reduction of the emissions intensity
of GDP by 33% to 35% below 2005 levels by 2030, and raise the percentage of non-
fossil fuels in total capacity to 40%. Hence the government has pushed towards
renewable capacity additions through policies initiatives like JNNSM, obligations of
RPO, setting up of SECI.
The JNNSM is a major initiative of the Indian government, with strong participation from states,
to encourage environmentally sustainable growth while addressing India's energy security
issues. By 2022, the Mission hopes to have installed 100 GW of grid-connected solar power
plants. To meet this goal, the Indian government has implemented a number of policies, including
the Solar Park Scheme, PM KUSUM, CPSU, Grid Connected Solar Rooftop Schemes, and others
initiatives like Domestic modules production, REC, RPO, must run status, waiver of ISTS charges
etc.
Development of an ultra-mega renewable energy power park (UMREPPs). To de-risk project

development, the government has boosted financing available to the renewables industry and
assigned concentrated zones of development for solar power facilities (ultra-mega solar power
projects - UMSPP) to reduce project implementation time and costs.
8.2.2 Challenges
• Counterparty related challenges

1. Delays in payment from Discoms/counter party
The state distribution firms, or discoms as they are collectively called, have been the
biggest cause for worry. As the ultimate customers for solar power producers, their
financial situation continues to be dire in most cases, and hence there have been
consistent delays in payments.
2. Heavily Dependent on Imports

Important components such as solar cells, modules, and inverters are largely imported
into India's solar sector. The government has taken a number of efforts to boost
indigenous industry, including raising import duties. The current production capacity is
only able to meet 35% of the total annual demand. The figure below depicts the % share
94
of PVV production of each countries where a majority share of 71% is by China followed
by South Korea by 6%.
Chart 64: Countries share of PVV module Production
Others
India 11%
1%
Europe
USA 2%
3%
Malaysia
6%
South Korea
6%
China
71%
Source: IEA PVPS Annual Report
• Recent trends of increase in capital costs due to increase in material costs and
push towards domestic manufacturing
3. Increase in panel prices since mid-2020

Since the second half of 2020, the PV sector has seen multiple waves of price hikes,
ranging from polysilicon to materials including steel, aluminium, copper, PV glass, and
films. PV prices are also rising owing to rising freight and transportation costs caused by
supply chain constraints created by the new coronavirus disease (COVID-19) rules. Since
China is major manufacturer of PV, supply disruptions were caused by floods in Southeast
China and module price began to rise. The chart below shows variations in price during
the decade.
95
Chart 65: Solar Panel price variation
Source: PVInsights
4. Move to domestic manufacturing - ALMM and basic customs duty leading to

increase in capital costs
ALMM was introduced by Union Ministry of New and Renewable Energy on March, 2021.
ALMM limits the solar developer in terms of the choice of module wattage and make and
thus is not able to serve the purpose of accelerating India’s Solar mission and targets.
Only 23 manufacturers are mentioned on the list and will be allowed for use in government
and government assisted projects, schemes and programmes for bids after April 10, 2021.
5. Challenges in domestic financing

In addition, projects continue to face challenges in raising bank loans from domestic
lenders especially those projects exposed state-level counterparties.
96
Crude Oil : Price goes down and then recovers

The oil prices of July reflect the rising optimism about
Exhibit 3: Brent price movement (USD /
the oil demand recovery in H2-CY21. This is amid the 78 barrel)
expectations of a tight global oil market. The 18th 77
OPEC and non-OPEC Ministerial meeting held on 1st 76
July, to decide oil supply changes did not reach any 75
conclusion, as U.A.E. opposed its quantity of supply 74
changes. The meeting which continued on the next 73
day also remained unsuccessful and hence was 72
71
pushed to 5th July, where the outcome was
70
undecided. During these days, the investors expected
69
this meeting to conclude with an elevation in oil
68
supply. Hence Brent rose to highs of USD 77/barrel
23-07-2021
01-07-2021
03-07-2021
05-07-2021
07-07-2021
09-07-2021
11-07-2021
13-07-2021
15-07-2021
17-07-2021
19-07-2021
21-07-2021
25-07-2021
27-07-2021
29-07-2021
on 5th July.
CARE Advisory Research & Training Ltd
(Wholly-owned subsidiary of CARE Ratings Ltd.)
A-Wing, 1102-1103, Kanakia Wall Street, Chakala, Andheri-Kurla Road, Andheri East, Mumbai- 400093
Phone: +91-22-68374400
In the following two days (6th and 7th July), crude oil
prices:
Connect ended lower as the failed OPEC+ talks, led to expectations of additional unilateral supplies from
individual countries, coupled with more supplies from U.S. From 8th to 13th July, prices rose marginally as
API reported a decline in U.S. crude oil inventory and weakness in US Dollar. For the following three days
About:
(14th-16th July), prices ended lower on reports of compromise over oil production deal between Saudi
CareEdge (CARE Group) is a knowledge-based analytical group that aims to provide superior insights based on technology, data
Arabiacapability
analytics & U.A.E.and detailed research methods. CareEdge Ratings is one of the leading credit rating agencies in India. It has an
impressive track record of rating companies for almost three decades and has played a pivotal role in developing the corporate debt
market in India. CareEdge provides near real time research on all domestic and global economic developments. The wholly owned
subsidiaries
On 19thinclude CareEdge
July, crude oilAdvisory
prices &declined
Research6.8%
arm focused on providing
or USD 5/barrel,advisory and consultancy
following the decision services and CareEdge
by OPEC+ Risk oil
to boost
solutions a platform that provides risk management solutions
supply beginning August 2021, in the 19th OPEC and non-OPEC Ministerial Meeting held on 18th July.
However, 20th July onwards, prices rose each day, on hopes of economic recovery, which outweighed the
concerns of rising covid-19 cases in Africa, US and Asia. Higher crude demand from refiners and the
prospect of improvements in oil demand in the transportation sector during the summer driving season,
added support to prices. Asian crude was driven by robust demand from Chinese and Indian refiners.
97

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<<Report Title - Techno economic viability study of a greenfield capacity of 5MLPD ethanol

for <<Client name>>

<<Month & Year>>

Submitted by CARE Advisory Research and Training Ltd

6.2 Growth Drivers ......................................................................................................................... 80

Chart 34: Global key end user break up .............................................................................................. 50

1.1 Global Economy

Chart 1: Global Growth Outlook Projections (in %)

Emerging Market &

2020 2021E 2022E

Advanced economies group

Emerging market and developing economies group

1.2 Indian Economy2

1.2.1 GDP growth and Outlook

Chart 2: Sequential growth in GDP at constant prices (in %)

Source: MOSPI, CareEdge Ratings Economics Research report

Chart 3: Quarterly GDP growth in % at constant prices (y-o-y)

Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY 22 over Q2 FY20

Real GDP 4.4 -7.4 8.4 0.3

Nominal GDP 5.9 -4.0 17.6 12.4

Source: MOSPI, CareEdge Ratings Economics Research report

Chart 4: RBI's GDP Growth Outlook as on December'21

GDP Growth 6.6 6 9.5 17.2 7.8

Source: RBI press release dated December 8, 2021

Chart 5: Sectoral Growth - Quarterly (y-o-y % growth) at constant prices

Source: MOSPI, CARE Ratings Economics Research report

1.2.1 Industrial Growth

Chart 6: y-o-y growth in IIP (in %)

Source: MOSPI, CareEdge Ratings Economics Research report

1.1.1 Per Capita GDP, Income and Final Consumption

Chart 7: Growth in per capita GDP, Income & Final Consumption

3.0 3.1 4.4

Consumer Price Inflation3

Chart 8: Retail price inflation (% growth year-on-year)

Source: MOSPI, CARE Ratings Economic Research

Component wise inflation analysis

• Higher prices in household goods and services (5.9%), recreation and

Chart 9: Component wise retail inflation (y-o-y)

Source: MOSPI, CARE Ratings Economics Research report

Chart 10: Core CPI (y-o-y %)

Source: MOSPI, CARE Ratings Economics Research report

India – Resurgence in manufacturing sector and its expected impact on

Chart 11: Index of Industrial Production (IIP): Capital goods

April - September IIP y-o-y growth

Chart 12: Trend in GST collections (in Rs crores)

2 Overview of Global Bearings sector

2.1 General types of bearings and the components of a bearing

2.2 Size of the global bearings market

Chart 13: Global bearings market size (in USD billion)

Note: Market size is based on revenues; A – Actual, F – Forecast

2.3 Type wise breakup of global bearings market

2.4 Application wise breakup of global bearings market

1.0% 9.0% 0.7%

Automotive Construction Automotive Construction

Aviation & Aerospace

Electrical & Electronics

2.5 Geography-wise break-up of global bearings market

2.0% 3.0% 1.5%

26.1% 40.6% 26.0% 41.4%