Fastener Market Analysis in India
The relevance of research
Fasteners (fasteners) - details for the formation of the connection of parts of the structure: bolts, nuts, screws, screws, self-tapping screws, rivets, washers, pins, studs and others. You can’t do without fasteners and hardware in construction; the railway sector; mechanical engineering; production of automobiles, electrical products, furniture and other products; installation of electrical wiring, plumbing and heating systems; when carrying out cargo and other works
Purpose of the study
Analysis of the state of the fastener market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the fastener market
Content
Part 1. Overview of the Indian fastener market
1.1. Main characteristics of the market
1.2. Fastener market volume dynamics 2017-2021 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Fastener Market Life Cycle Stage
1.5. Competition from substitute products
Part 2. Competitive analysis in the fastener market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of fastener production
3.1. Volume and dynamics of domestic production of fasteners
3.2. Share of exports in the manufacture of fasteners
3.3. Fastener production segmentation by region
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade supplies of fasteners
4.1. Volume and dynamics of imports of fasteners
4.2. Import structure
4.3. Volume and dynamics of export of fasteners
4.4. Export structure
Part 5. Fastener Consumption Analysis
5.1. Fastener Consumption Volume Dynamics
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast of fastener market development until 2026
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian fastener market
1.1. Main characteristics of the market
Fasteners (fasteners) - details for the formation of the connection of parts of the structure: bolts, nuts, screws, screws, self-tapping screws, rivets, washers, pins, studs and others. As fasteners, some types of industrial hardware can be used - metal products of various nomenclature, usually standardized.
...
At present, the use of connecting fasteners is accompanied by especially high requirements and strict GOSTs, as well as certain regulatory documentation for its manufacture. The standardization of fasteners is due to its widest application in industry, including industries that are critical for the state (military, engineering, energy and heat engineering).
In general, GOST 27017-86 defines the following fasteners:
- Bolt. A fastener in the form of a rod with an external thread at one end, with a head at the other, which forms a connection with a nut or a threaded hole in one of the connected products.
- Screw. A fastener for forming a connection or fixation, made in the form of a rod with an external thread at one end and a structural element for transmitting torque at the other.
- Screw. A fastener in the form of a rod with an external special thread, a threaded conical end and a head at the other end, forming a thread in the hole of a wooden or plastic product to be joined.
- Hairpin. Fastener in the form of a cylindrical rod with external threads at both ends or along the entire length of the rod.
- Pin. Fastener in the form of a cylindrical or conical rod for fixing products during assembly.
- Screw. A fastener with a threaded hole as a structural element for transmitting torque.
- Washer. A fastener with a hole placed under the nut or head of a bolt or screw to increase the bearing surface and/or prevent them from self-loosening.
- Cotter pin. Fastener in the form of a wire rod of semicircular cross section, folded in half to form a head.
- Rivet. Fastener in the form of a smooth cylindrical rod with a head at one end, which serves to obtain a permanent connection due to the formation of a head at the other end of the rod by plastic deformation.
Among the many varieties and classifications of fasteners, the following types are distinguished:
- 1) fixing and machine-building - connects various parts of metal structures and machines, has a strength class with heat treatment - 8.8;
- 2) high-strength - this is a subspecies of the first fastener, it differs only in increased strength and use in the most critical connecting places. Available strength class - 8.8 - 12.9 and more; high strength is obtained due to two types of hardening: hot and cold heading, and then the thread is already cut. The material for its manufacture are alloy steel and low-carbon steel;
- 3) construction - used in the construction of buildings, structures, and so on. This type is divided into: anchors, self-tapping screws, etc.;
- 4) stainless - made from stainless steel grades A2 and A4, has anti-corrosion, is used in the pharmaceutical, food and medical industries;
- 5) galvanized - made of steel coated with a layer of zinc by electrolysis, can be used in any aggressive environment;
- 6) perforated - has a different shape with holes (perforations) made by drilling or stamping (plates, corners, and so on).
Diagram 1. The ratio of imported and domestic products in the fastener market in 2015-2021,%
During the period from 2015 to 2021, the fastener market in India was dominated by imported products - their share has always exceeded ...%.
1.2. Fastener market volume dynamics 2017-2021 Potential market capacity
Consider the dynamics of the fastener market in India.
The dynamics of the volume of the fastener market in India has a wave-like character - during periods of crisis, demand falls.
...
As for the potential market capacity, its size almost completely depends on the dynamics, volumes and potential capacity of the construction market, automotive and engineering industries, etc.
More than half of the proceeds from the sale of fasteners (in 2018-2021) came from the Central Union Territories. Firstly, the Central Union Territories is the most concentrated and attractive sales market; secondly, the largest projects for the construction of buildings, structures, infrastructure are carried out on its territory; thirdly, some large manufacturers are located, as well as importers of foreign-made products are registered.
...
1.3. Assessment of factors affecting the market
Macroeconomic factors influence the dynamics of all sectors of the Indian economy, including the fastener market. The main groups of factors are: economic, political, social and technological.
Social factors
...
During 2010-2018, there was an increase in the population.
...
level of urbanization. During 2014-2021, urbanization is taking place - the proportion of urban residents is increasing, while since 2015 the population of rural settlements has been decreasing. The migration influx in large cities leads to an additional supply of labor, an increase in demand for real estate, infrastructure, demand for goods and services. For the analyzed market - the positive influence of the factor.
...
Technological factors
...
Fasteners are used in various sectors of the national economy to create connections with a long service life, including in general engineering, automotive, bridges and railways, construction, and for connecting metal structures.
...
The index of production of building metal structures and products and the production of machinery and equipment in 2017-2022 exceeded %, while the production of motor vehicles and other vehicles periodically decreases, so the impact of the factor on the market is multi-vector.
Diagram 7. Dynamics of the volume of the market for the construction of bridges and tunnels, 2014-2021, billion Rs.
The dynamics of the bridge and tunnel construction market in India is undulating.
...
One of the key market growth factors is the unsatisfactory state of transport infrastructure, in particular bridges and tunnels, especially at the regional and local levels, the lack of such facilities in India and the growth of freight traffic both by road and rail.
The growth and progressive development of the market for the construction of bridges and tunnels is largely determined by the government's policy of developing the country's infrastructure and the corresponding budget financing. Road funds are the main source of financing for the construction and maintenance of motor transport infrastructure, and in recent years, public-private partnerships in the construction of roads, bridges and tunnels have been gaining popularity, as well as financing the construction of facilities from funds collected through the commissioning of the Platon system. .
The dynamics of the construction industry.
...
The fastener market is dependent on scientific developments and their implementation in modern practical production.
...
High technical requirements. The need to comply with GOST. Fasteners take on significant loads. The quality of fasteners has a significant impact on the strength of the structure. Requirements for fasteners are determined by the relevant GOSTs.
According to WestSnab experts, “the main factors hindering market growth are the shortage of high-quality pig steel for upsetting and the lack of existing production capacities.” At the same time, there is a lack of systemic development of consuming industries and, as a result, an increase in demand.
Economic forces
GDP (gross domestic product) is used to determine the rate of economic development of any state. GDP is a macroeconomic indicator that reflects the total value of goods, works and services that were produced and provided in the country in a year. Gross domestic product is the main indicator on the basis of which the level and pace of the country's economic development are determined.
...
Dynamics of prices for electricity, fuel. The dynamics of electricity tariffs and fuel prices affect any industry. As shown in the table, the prices for these categories increase annually, the CPI is in all cases above 100%, which negatively affects the market in question.
Table 4. CPI for selected types of industrial goods for India at the end of the period in 2016-2021, %
Industrial production index. This is an indicator of the dynamics of the volume of industrial production, its rise or fall, is defined as the ratio of the current volume of production in monetary terms to the volume of industrial production in the previous or other base year. This index characterizes the change in GDP due to the fundamental sectors of the economy: mining, manufacturing, production and distribution of electricity, gas and water.
...
The dynamics of steel prices.
...
Political factors
The tense political situation in interstate relations has a negative impact on all spheres of the Indian economy. The main activities of the state and the strategic tasks at present are the development of new models of cooperation with the US and the EU and the approval of India in the world monetary system. Anti-India sanctions and the generally sharp deterioration in relations between Western countries and India largely determine India's foreign policy.
Credit policy. Today it is quite difficult to imagine the progressive development of the economy without the active participation of the credit system. It should also be noted that the assessment of the availability of credit resources for both legal entities and individuals is a significant indicator that allows assessing not only the demand for credit funds, but can also serve as a reflection of the real economic situation both in the region and in the economy as a whole.
The Government of India is actively working towards the availability of credit funds. As can be seen in Table 6, the weighted average interest rate in 2016-2021 tends to decrease. Low stable interest rates will allow more confident business planning and consumer spending planning.
...
From the point of view of small and medium-sized businesses, the main problems in obtaining a loan in India are: high interest rates on loans; high requirements for assessing the creditworthiness of small and medium-sized businesses by banks; reluctance of banks to lend to start-ups.
From the point of view of Indian banks, the main problems that commercial banks face when lending to small and medium-sized businesses are: high risks of non-return of issued financing; lack of collateral; increased operating costs; conducting financial analysis based on simplified reporting of organizations is not always effective.
Let's summarize the main factors influencing the market in the framework of the Step-analysis.
Table 6. STEP analysis of factors affecting the fastener market
In general, the impact of macro factors on the fastener market in India can be assessed as a negative medium force. A decrease in GDP, rising prices for electricity, fuel, steel, a decrease in the solvency of the population, a decrease in the population, dependence on scientific developments, etc. have a negative impact. Dynamics of the IPP, credit policy, the use of innovative technologies and materials, the dynamics of some consumer markets (including bridge construction). Factors of the devaluation of the rupee and the dynamics of production in consumer sectors have a multidirectional effect on the market. The influence of all groups of factors is multi-vector.
1.4. Fastener Market Life Cycle Stage
The fastener market is at the stage of life cycle maturity. At the same time, the quality of the product is at a high level, so there is no need to make any changes to the basic characteristics of the product. The product is presented on the market with a large number of modifications.
...
Fasteners as a product from the category of novelties have long moved into the category of standard ones. The number of buyers (legal entities and individuals) who made the purchase of this product for the first time is significantly reduced, and the bulk of buyers purchase the product repeatedly or repeatedly. In addition, buyers have the opportunity to choose between various domestic and foreign manufacturers.
At this stage, the role of price competition increases.
The main task of the enterprise at this stage is to maintain and, if possible, expand its market share and achieve a sustainable advantage over direct competitors.
At the stage of maturity, the main task of marketing activities is to extend the life cycle of the product and involves:
- improvement of the trade assortment due to product differentiation;
- deeper market segmentation and entry into new segments (if there are any left);
- encouraging existing customers to systematically and more frequently purchase goods;
- conducting competitive advertising campaigns;
- search for new consumer groups and encourage them to make a purchase.
The fastener market as a whole is quite stable and its dynamics is logically clear, the product group is already at the stage of life cycle maturity.
1.5. Competition from substitute products
Fasteners are parts that allow you to fasten parts of structures together. Products have a different configuration, and are also made of various materials.
And if in everyday life it is possible to use other goods for temporary fastening of parts (with the help of ropes, adhesive tape, electrical tape, wire, etc.), then in production and construction there are no substitute products for fasteners.
You can’t do without fasteners and hardware in construction; the railway sector; mechanical engineering; production of automobiles, electrical products, furniture and other products; installation of electrical wiring, plumbing and heating systems; when carrying out cargo and other works.
Part 2. Competitive analysis in the fastener market
2.1. Major players in the market
...
The major Indian manufacturers of fasteners are: ...
2.2. Market shares of the largest competitors
...
The fastener market in India is low concentrated, highly competitive: many manufacturers and importers with low shares.
...
2.3. Profiles of major players
XXX
...
XXX
...
XXX
...
Part 3. Analysis of fastener production
3.1. Volume and dynamics of domestic production of fasteners
Diagram 15. Dynamics of fastener production volumes in India for 2015-2021, thousand tons
The decline in demand during the crisis of 2014-2016 led to a decrease in production ...
...
3.2. Share of exports in the manufacture of fasteners
Much of the fasteners produced in India are consumed domestically...
3.3. Fastener production segmentation by region
3.3.1. Production by Union Territories
Table 9. Dynamics of fastener production in India by union territories in 2017-2021, tons
Traditionally, the top 3 federal districts in which the maximum number of fasteners are produced are the Ural Union Territories, the Volga Union Territories and the Central Union Territories.
...
3.3.2. Production by states of India
Let's represent the data in the form of a chart.
The diagram shows the Top 10 regions with shares in the production of fasteners of at least ...%.
Part 4. Analysis of foreign trade supplies of fasteners
4.1. Volume and dynamics of imports of fasteners
At the end of 2021, there is an increase in the supply of imported fasteners to India in dollars by ...%, which indicates an increase in the average import price.
4.2. Import structure
...
The leading importers are: ...
4.3. Volume and dynamics of export of fasteners
The dynamics of exports of fasteners in physical terms in the presented period tends to increase in general.
...
Diagram 23. Balance of exports and imports in 2015-2021, thousand tons
During the entire period shown in the diagram, the trade balance in the fastener market remained sharply negative: ...
4.4. Export structure
The diagram shows exporting countries with shares in the total volume of at least ...%.
A significant part of all fasteners supplied abroad were sent to Belarus in 2021 - ...%.
Part 5. Fastener Consumption Analysis
5.1. Fastener Consumption Volume Dynamics
Per capita consumption tends to increase in 2016-2021, however the pace in 2020 signaled a stagnation in demand.
...
5.2. Analysis of the results of tenders for the purchase
According to the EIS in the field of procurement and IS Fira.Pro, for the period from May 1, 2021 to April 29, 2022, more than 44 thousand contracts were concluded in accordance with Federal Law No. 2,6, including fasteners in the subject of procurement.
Let's present detailed information on contracts in the form of a table, where, for example, data on contracts worth more than ... million Rs are given.
...
An analysis of information on contracts under FZ-44 for the supply of fasteners showed that:
- In addition to fasteners, the list of products purchased at the tender often includes other goods: building materials, tools, furniture components, etc.
- The share of fasteners in purchases (presented in the table) ranged from 0,2% to 100%.
- All tenders under FZ-44, containing fasteners in their subject matter, were announced by state institutions (orders from municipal, state, unitary enterprises, etc.).
- Data on contracts are placed in a single system daily, the number of tenders is large.
- Part of the contracts are concluded by the method ""Purchase from a single supplier (contractor, performer)
- In general, following the results of the procedures, the final discount may exceed 38% of the original price.
- According to the terms of the procedures, customers may be interested in periodic or one-time deliveries of products according to their requests, and the supplier must be ready to fulfill this request within the time agreed by the contract.
Part 6. Price Analysis
6.1. Average producer prices by union territories
...
6.2. Average consumer prices by states in India
To conduct a comparative analysis of consumer prices in the states of India, a conditional package of fasteners was taken with an average cost in India ... Rs. in 2021.
...
Such a spread of prices in the regions is due to different reasons for each of them: the level of wages (and, accordingly, the purchasing power of the population), markup levels, the proximity or remoteness of the region from the central part of India, producer and importer prices, transport costs, etc.
Part 7. Assessment of factors of investment attractiveness of the market
...
The negative factors of the investment market climate dominate over the positive ones. A comprehensive assessment of the factors of investment attractiveness is ""minus"" 0,53 points - a neutral investment climate. This means that within the industry under consideration, the difficulties and problems hindering the development of enterprises in the industry, the entry of new operators slightly prevail over the prospects and potential for development.
The most significant positive factors.
...
The most significant negative factors.
...
Part 8. Forecast of fastener market development until 2026
We will analyze the market based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
Let's consider experts' forecasts and available data that allow us to assess the prospects for the fastener market using the example of one of the main consumer industries - real estate construction.
...
Part 9. Recommendations and conclusions
Fasteners are used in various fields: construction, everyday life, industry, which determined the relevance of the industry.
The dynamics of the volume of the fastener market in India has a wave-like character - during periods of crisis, demand falls. Nevertheless, in general, in 2015-2021, there is a trend towards an increase in the indicator.
...
Market companies are recommended to:
...
Diagrams
Diagram 1. The ratio of imported and domestic products in the fastener market in 2015-2021,%
Diagram 2. Dynamics of the fastener market volume, 2015-2021, thousand tons
Diagram 3. Revenue (net) from the sale of fasteners by union territories for 2017-2021, %
Diagram 4. Population dynamics in India as of January 1, 2010-2022, million people, %
Diagram 5. Population forecast in India for the period 2021-2024, million people
Diagram 6. Dynamics of real incomes of the population of India, 2011–2021, % to the previous year
Diagram 7. Dynamics of the volume of the market for the construction of bridges and tunnels, 2014-2021, billion Rs.
Diagram 8. Dynamics of the volume of the real estate construction market in India in 2006-2021, billion Rs.
Chart 9. Dynamics of India's GDP, 2012–2021, % to the previous year
Chart 10. Monthly dynamics of the US dollar against the rupee, 2015-2022 (Jan-Mar), Rs. for 1 US dollar
Diagram 11. Dynamics of India's IPP in 2014 - 2022 (Q1), % to the previous year
Chart 12. Producer price index for ""Other alloy steel in ingots or in other primary forms and semi-finished products from other alloy steel"" for India at the end of the period in 2017-2022 (Jan-Feb.), %
Figure 13. Fastener Market Life Cycle Stage
Diagram 14. Shares of the largest competitors in the fastener market in 2021, %
Diagram 15. Dynamics of fastener production volumes in India for 2015-2021, thousand tons
Diagram 16. Dynamics of the total revenue of the largest manufacturers (TOP-5) of fasteners in India, 2017-2021, billion Rs.
Diagram 17. The share of exports in production for 2015-2021, %
Diagram 18. The structure of fastener production by states of India in 2021,%
Diagram 19. Volume and dynamics of imports of fasteners in physical terms in 2015-2021, thousand tons
Diagram 20. Volume and dynamics of imports of fasteners in monetary terms in 2015-2021, units rev.
Diagram 21. Dynamics of export of fasteners in physical terms in 2015-2021, thousand tons
Diagram 22. Dynamics of export of fasteners in monetary terms in 2015-2021, units rev.
Diagram 23. Balance of exports and imports in 2015-2021, thousand tons
Chart 24. Structure of exports by countries in 2021,%
Diagram 25. Dynamics of consumption of fasteners in monetary terms, 2016-2021, Rs./person
Diagram 26. Forecast of market volume in 2022-2026, thousand tons
Tables
Table 1. Urban and rural population in India in 2014-2021 (as of January 1), million people, %
Table 2. Production indices for certain types of economic activity according to OKVED2, 2017-2022 (Jan-Mar), in % to the corresponding period from the beginning of the previous year
Table 3. Production indices by industries-consumers of fasteners in India in 2017-2022 (Jan-Mar), %
Table 4. CPI for selected types of industrial goods for India at the end of the period in 2016-2021, %
Table 5. Weighted average interest rates of credit institutions on credit operations in rupees, excluding PJSC Sberbank (% per annum), 2015-2021
Table 6. STEP analysis of factors affecting the fastener market
Table 7. The main companies participating in the fastener market in 2021
Table 8. Profiles of companies participating in the fastener market in 2021
Table 9. Dynamics of fastener production in India by union territories in 2017-2021, tons
Table 10. Structure of imports of fasteners by importing countries in 2021, units rev.
Table 11. Tenders for the purchase of fasteners, for which contracts were concluded under the Federal Law-44 in the period from 01.05.2021/29.04.2022/4 to / / , in the amount of more than million Rs.
Table 12. Average producer prices in the fastener market across the Union Territories in 2017-2021, Rs./t
Table 13. Average consumer prices in the fastener market by state of India in 2021, Rs./conv. pack.
Table 14. Assessment of factors of investment attractiveness of the fastener market
All reports