Domestic gears and gearboxes

90.0 Rs billion

 

 

80.0
70.0 62 to 64
- — CS - - - >
60.0 ” 49 2
50.0 45 40 to 44
39
40.0
30.0
20.0
10.0
0.0
FYIS FYI6 =-FY17»s-FY18. = FY19.—s FY20_—sFY21P. FY24P

Note: Includes gear boxes, geared motors, loose gears and other components such as gearbox housing, etc.
Source: CRISIL Research, industry

Wind power projects, conventional sectors such as cement and steel are key end-users

In the past, demand for gears and gearboxes was driven by the execution of 16.6 GW of wind projects as well as
Rs 2.04 trillion invested in the Indian Railways during fiscals 2015-2019. Demand from wind projects, in
particular, picked up significantly between fiscals 2015 and 2020, owing to 56% jump in wind capacity addition
in fiscal 2017.

Demand from conventional sectors such as power, steel, cement and mining remained low owing to lack of major
capital expenditure (capex) investments over fiscals 2015-2020. Demand from thermal power dropped because of
lack of new capacity additions because of a shift in the government’s focus towards renewable energy sources
such as wind and solar.

Contribution of wind power dropped in fiscals 2019 and 2020, due to slowdown in wind power capacity addition
compared with robust wind capacity addition in fiscals 2016 and 2017. The wind sector’s share in gear and
gearboxes dropped from 25% in fiscal 2017 to ~13% in fiscal 2019 and 15% in fiscal 2020.

Conventional sectors (cement, heavy metals, power, and mining) collectively constituted 55-60% share in fiscal
2020. Share of the conventional sector rose in fiscal 2019, as a result of capacity additions in cement, steel and
infrastructure segments. Other sectors such as railways, fertilizers, textiles, chemicals, printing, packaging, plastic,
cranes, defence, etc. contributed the rest. Gears used in elevators, plastic extrusion, printing machines are
estimated to account for 5-10% of the gear and gearboxes industry.

Intensity of gears and gearboxes differs across applications, depending on the processes and material handling
requirements. For a given application, gearbox requirement changes substantially as per the plant configuration
(capacity, plant design, etc.).

Indicative gear and gearbox intensity across applications

 

 

 

 

 

Cement ‘1 MTPA (48-535
Steel LMTPA 30-35 _
‘Thermal power 1 MW 0.4-0.45
Sugar 1 TPH 25-28
“Wind Jo MW 30-40

 

 

Source: CRISIL Research, industry

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