Bearing Market in India

The manufacturing activity in India started in the late 40's, with the production of small and standard bearings. The first major manufacturing unit was set up by the Birla Group near Jaipur in 1955. Today the Rs. 35 billion Indian bearing market is growing steady with 8-10% annual growth. The Indian industry today manufactures small and medium bearings mainly in five categories:

Union Budget 2006-07 The import duties on alloy steel, which is one of the key raw materials for manufacturing bearings, has come down from 10 percent to 7.5 percent:

Distribution Of Production

 

Bearing Type	Share (%)
Ball Bearing	54
Taper Roller	30
Cylindrical roller	7
Needle roller	6
Spherical roller	3

 

Market Demand

Bearing OEMs in India mainly caters to:

• Automobile
• General Engineering & Heavy Industries
• Electrical equipments

The demand for bearings comprises:

• Original Equipment demand (OE)
• Replacement demand

Market Dynamics

Original Equipment Manufacturers (OEM) Market
The OEM market for bearing represent the demand arising out of the original vehicle and industrial manufacturers. The demand for the OEM market directly depends upon the growth in user industry. OEM market accounts for 60% of total demand of bearing industry. This market is characterized by requirements of high quality, stringent delivery norms and lower margins.

OEM’s have been facing price competition in their own markets, continue to exert price pressure on the local bearing suppliers. The bearing capacity available in the country is in excess of demand, resulting in price reduction. The OEM bearing market is likely to witness better days ahead on account of up swing in automobile industry and manufacturing sector.

Replacement Market
The replacement market represents the demand arising on account of replacing the used and worn-out bearings. The size of replacement market is dependent on equipment population and frequency of maintenance. Replacement market accounts for 40% of total demand for bearing industry. The margins in this market are relatively higher placed as compared to OEM market.

The replacement market is highly price sensitive and has higher share of unorganized players and cheaper imported bearings.

 

Union Budget 2006-07 The import duties on alloy steel, which is one of the key raw materials for manufacturing bearings, has come down from 10 percent to 7.5 percent.

 

Tags:- Bearing Market, Indian Bearing Market

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