Market Analysis of Industrial Washing Machines in India
The relevance of research
Industrial washing machines are washing units designed to process linen in industrial volumes. The industrial washing machine market is a set of enterprises engaged in the production and sale of industrial washing machines of various types, which form the market offer, the number of users of this type of product, as well as the relationship that arises between sellers and consumers of industrial washing machines in India
Purpose of the study
Analyzing the state of the industrial washing machine market in India, assessing the market size, analyzing competitors, and identifying factors affecting the industrial washing machine market
Content
Part 1. Overview of the Indian market for industrial washing machines
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of industrial washing machines 2017-2021 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Life cycle stage of the industrial washing machine market
1.5. Competition from substitute products
Part 2. Competitive analysis in the industrial washing machine 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 the production of industrial washing machines
3.1. Volume and dynamics of domestic production of industrial washing machines
3.2. Share of exports in the production of industrial washing machines
3.3. Segmentation of production of industrial washing machines by region
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade deliveries of industrial washing machines
4.1. The volume and dynamics of imports of industrial washing machines
4.2. Import structure
4.3. The volume and dynamics of exports of industrial washing machines
4.4. Export structure
Part 5. Analysis of the consumption of industrial washing machines
5.1. Dynamics of consumption volume of industrial washing machines
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 the investment attractiveness of the market
Part 8. Forecast for the development of the market for industrial washing machines until 2026
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian market for industrial washing machines
1.1. Main characteristics of the market
Consider the characteristics of the Indian market for industrial washing machines.
The industrial washing machine market is a collection of enterprises engaged in the production and sale of industrial washing machines of various types, which form the market offer, the number of users of this type of product, as well as the relationship that arises between sellers and consumers of industrial washing machines in India.
Industrial washing machines are washing units designed to process linen in industrial volumes.
Modern industrial washing machines are classified:
According to the intensity of the spin:
- high-speed machines (with final spin): the spin speed of the drum reaches 1000 rpm, which allows you to get linen with 50% moisture for further processing in a dryer or with an ironing calender. Full wringers feature a sprung design that reduces vibration and stress, ensuring the lowest noise level in the laundry room. G-factor during spinning in high-speed machines is 300 - 450;
- medium-speed machines (with increased spin): the rotational speed of the drum during the spin cycle reaches 400 - 600 rpm, which allows you to wring out the laundry to a residual moisture content of 65%. G-factor during spinning in medium-speed machines is 100 - 200;
- low-speed machines (with an intermediate spin): the rotational speed of the drum during the spin cycle is about 100 - 150 rpm, which allows you to wring out the laundry to a residual moisture content of 90 - 110%. After washing in machines of this type, an intermediate stage in the processing of linen before drying is spinning in a centrifuge. G-factor when spinning in low speed machines is 10.
- machines without spinning: the residual moisture content of the laundry after washing in such units reaches 200%.
By type of management:
- machines with microprocessor control: the operator himself sets not only the basic parameters, but also the amount of detergent, adjusts the time of each stage and analyzes the past cycle in order to optimize the entire process;
- machines with automatic control: the operator does not go beyond the programs preset by the manufacturer, but chooses from the proposed set of washing programs, while it is possible to select the mode, adjust the temperature, spin speed;
- manual machines.
According to the method of heating water:
- machines with electric heating (with the help of heating elements);
- steam heated machines;
- cars with gas heating;
- machines with combined heating.
By work resource:
- professional (up to 30 wash cycles);
- semi-professional (up to 3 wash cycles);
- household (up to 1 wash cycles).
The washing machine consists of two cylindrical drums:
- Internal (is the main working body of the machine). The rotation of the inner drum is carried out from the electric motor through a V-belt transmission.
- Outer. Walls are attached to its ends: the back one with the support of the inner drum and the front one with a manhole cover that closes the openings for loading and unloading linen.
The drum unit (hanging part) is fixed to the frame posts through spring suspensions and shock absorbers, which not only support the hanging part of the machine, but also reduce vibration at a high drum speed during the spin cycle.
The supply of hot, cold water and steam to the drum is carried out through the electrovalve. Supply of detergents and special additives to the drum - through the dispenser, by washing them with cold water from the electrovalve. Drainage of the waste liquid from the drum into the sewer is carried out through the drain valve.
The machines are available with stainless or painted steel linings.
Industrial washing machines of different capacities and loads are used wherever there is a need to process large volumes of things. They are always in demand in municipal, commercial and self-service laundries; dry cleaners; hotels and hostels; medical and educational institutions; military units; bath and laundry facilities; sanatoriums, boarding houses and resorts; fitness clubs and sports centers; hostels; restaurants; at the enterprises where washing of strongly soiled overalls has to be carried out.
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1.2. Dynamics of the market volume of industrial washing machines 2017-2021 Potential market capacity
Consider the dynamics of the market volume of industrial washing machines in India. In general, the dynamics of the volume of the market under consideration tends to increase, however, the decline in industrial production in 2019-2020. had an impact on the dynamics of Indian production.
Diagram 2. Dynamics of the market volume of industrial washing machines in India, 2017-2021, million Rs.
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A large share of domestic production of industrial washing machines and laundry equipment is concentrated in the European part of the country.
1.3. Assessment of factors affecting the market
Let's take a look at the main factors influencing the industrial washing machine market in India.
Economic forces
Dynamics of India's GDP
Gross domestic product is one of the key indicators of the country's economic development. The dynamics of GDP determines the vector of development of the country's economy and influences the formation of trends in the development of industries and markets in the country.
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Industrial production index in India
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The level of industrial production is an important indicator of the development of the country's economy, as well as the degree of dependence of industrial sectors on financial and economic factors. The decline in industrial production leads to a deterioration in the standard of living, a reduction in real incomes of the population.
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Number of laundries and dry cleaners
The number of laundries and dry cleaners is one of the most important economic factors influencing the researched market. Due to the fact that laundry equipment is a highly specialized product with a long service life (not bought often and for a long time), the sales volume of industrial washing machines is not large and directly depends on the number of institutions where it is used.
Chart 7. Dynamics of the number of laundries and dry cleaners in India, 2017-2021, thousand units, %
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Social factors
Population
The growth of the country's population forms the current and potential level of demand for goods and services.
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The unemployment rate
The unemployment rate affects the level of effective demand in the country. Let us consider in more detail the dynamics of the share of the unemployed population in India.
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Real money income of the population of India
Real cash income determines the level of effective demand of buyers and is a key factor influencing the dynamics of retail trade in the country.
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Technological factors
Wide range of industrial washing machines
Different types and characteristics of textiles that require professional washing and cleaning require different levels of treatment. In some cases, a more delicate, gentle wash, more efficient drying or spinning is required. In this case, it is reasonable to use various models of industrial washing machines with different technical characteristics.
There are many types of industrial washing machines. They differ from each other in several ways:
- The presence of a barrier. Structures are barrier and barrier-free.
- Features of the installation divide the cars into sprung and static.
- Linen care. There is an industrial washer-dryer, spin-dryer or washer-only.
- The intensity of the drum. Distinguish between high-speed and low-speed devices.
- Control system. Automatic machines may have a control unit or computer control.
- Water heating. This process is carried out using a heating element, steam or a mixed method.
Political factors
Political instability
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Against the backdrop of developments on a global scale, anti-Indian sanctions, investment processes are being restrained. 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. Negative influence of the factor.
No need for licensing activities
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Industrial washing machines are usually classified as laundry equipment. According to Federal Law No. 99-FZ dated May 04.05.2011, “On Licensing Certain Types of Activities”, the production and maintenance of laundry equipment does not require mandatory licensing.
Despite the absence of the need for licensing, industrial laundry equipment, including industrial washing machines, are subject to confirmation of conformity in the form of a declaration of conformity with the technical regulation on the safety of machines and equipment, due to their scope.
The absence of the need for licensing has a positive effect on the industrial washing machine market.
Regulatory and legal framework
Due to the specificity of the market in question, the state has developed quality standards for industrial washing machines:
- GOST 27457-93 Industrial washing machines. General specifications.
- GOST 12.2.084-93 (ISO 6178-83) Machinery and equipment for laundries and dry-cleaners. General safety requirements.
- GOST 16567-82 Machinery and equipment for communal laundries and dry cleaning enterprises. Terms and Definitions.
- GOST R 51908-2002 General requirements for machines, instruments and other technical products in terms of storage and transportation conditions.
- GOST 9.014 Unified system of protection against corrosion and aging. Temporary anticorrosive protection of products. General requirements.
- GOST 30631 General requirements for machines, instruments and other technical products in terms of resistance to mechanical external factors during operation.
- GOST R 51801 General requirements for machines, instruments and other technical products in terms of resistance to aggressive and other special environments.
- GOST R 51909 Test methods for resistance to external influencing factors of machines, instruments and other technical products. Tests for transportation and storage.
- The presence of documents regulating quality also has a positive effect on the development of the studied market.
Let's carry out a STEP-analysis of the factors influencing the market of industrial washing machines.
Table 1 STEP Analysis of Factors Influencing the Industrial Washing Machine Market in India
In general, the influence of macro factors on the market of industrial washing machines in India is assessed by GidMarket as positive. This is facilitated by the growth of GDP, IPP, the reduction of unemployment, the increase in incomes of the population, government regulation of the industry, a broad regulatory framework, the development of production technologies, and a wide range of industrial washing machines on the market. At the same time, some factors still hinder the development of the market, having a negative impact. These include: the devaluation of the national currency, the instability of the political situation, the decline in population, the decrease in the number of dry cleaners and laundries. The influence of all groups of factors is multi-vector.
1.4. Life cycle stage of the industrial washing machine market
At the moment, the market for industrial washing machines is at the stage of maturity. In the last 3 years, there have been no sharp and significant changes in the number of laundries and dry cleaners, in other words, the number of potential consumers of the goods is growing at a very slow pace. An analysis of tenders and purchases showed that the bulk of purchased industrial washing machines in 2021 came from municipal institutions.
In the future, further development of textile washing and cleaning technologies may partially replace the use of industrial washing machines, but a complete abandonment of them and a transition to dry cleaning technologies or other technologies is not expected in the foreseeable future.
1.5. Competition from substitute products
Industrial washing machines for the most part have practically no drawbacks, with the exception of the high price, but even this drawback can be compensated by choosing a more budget brand industrial washing machine. At the moment, there are not many equipment in the world that could replace the use of an industrial washing machine in laundries, dry cleaners and other institutions that need constant washing. Consider the most common substitutes for industrial washing machines in India.
- Dry cleaning machine
- ...
- Barrier washing machine
- ...
- Washer-dryer column
- ...
Part 2. Competitive analysis in the industrial washing machine market
2.1. Major players in the market
The market for industrial washing machines is characterized by a moderate level of concentration (a small number of companies with significant market shares, the Herfindahl-Hirschman index is HHI = 1623.2243). Since 1000 < HHI ≤ 1800, this market belongs to moderately concentrated markets (average market concentration).
The Indian market for industrial washing machines is represented by domestically produced products, but there are also a significant number of foreign companies on the market, exporting their products to the country or having their own production facilities in India.
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2.2. Market shares of the largest competitors
Let's determine the shares of the largest competitors in the industrial washing machine market in India. The Indian market for industrial washing machines has a large number of operators, among which there are enterprises that produce not only industrial washing machines, but also other types of laundry and household equipment. The market is moderately concentrated.
The data on revenue (net) from sales to the total revenue of all companies, as well as the volume of imports in monetary terms to the volume of the market as a whole, were taken as the basis for calculating the shares of the largest operators in the market of industrial washing machines. The source of data for determining sales revenue was financial statements. At the same time, for enterprises whose production includes not only the production of industrial washing machines, but also other types of products, an adjustment was made taking into account the fact that the proceeds from the sale of industrial washing machines take a different share depending on the types of products produced, its assortment range. In this connection, there is an error, which is associated with the impossibility of accurately dividing the share of these operators between the sale of industrial washing machines in the total income of the company.
According to GidMarket, the total revenue of the TOP-5 largest manufacturers of industrial washing machines in 2020 amounted to ...
2.3. Profiles of major players
Let's take a closer look at the profiles of companies participating in the industrial washing machine market in 2021 in the context of their market shares.
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Part 3. Analysis of the production of industrial washing machines
3.1. Volume and dynamics of domestic production of industrial washing machines
Dynamics of domestic production of industrial washing machines in 2017-2021 characterized by a positive direction.
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Diagram 13. Dynamics of production volumes of industrial washing machines in India for 2017-2021, pieces,% of the previous period
The main growth factors are the annual increase in the number of people using laundry services, the increase in prices for both domestic and imported products, the process of updating equipment in laundries of state institutions (hostels, sanatoriums, hospitals, etc.).
3.2. Share of exports in the production of industrial washing machines
Share of exports in the production of industrial washing machines in the period from 2019 to 2021 grew every year.
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3.3. Segmentation of production of industrial washing machines by region
3.3.1. Production by Union Territories
The production of industrial washing machines in India in the context of federal districts is characterized by pronounced unevenness.
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3.3.2. Production by states of India
The chart below shows the states in India where industrial washing machines are manufactured. The leading place is occupied by the Central Union Territories ...
Part 4. Analysis of foreign trade deliveries of industrial washing machines
4.1. The volume and dynamics of imports of industrial washing machines
In the period from 2019 to 2021, there was a positive trend in the volume of imports of industrial washing machines to India. During the period under review, the volume of imports in monetary terms increased almost 2 times, the growth rate throughout the entire period was at the level of ...%.
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At the same time, according to experts, the alignment of prices for industrial washing machines with the world average will improve the situation with the production of domestic industrial-type washing machines and will contribute to the search for new business models for interaction with equipment consumers, taking into account the low marginality of the market.
Diagram 16. Volume and dynamics of imports of industrial washing machines in India in monetary terms 2019-2021, million Rs.
4.2. Import structure
In 2021, 20 countries imported industrial washing machines to India.
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4.3. The volume and dynamics of exports of industrial washing machines
Dynamics of exports of industrial washing machines in monetary terms in 2019-2021 has uniform changes.
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The chart below provides data to estimate the balance of trade in the industrial washing machine market in India.
Chart 19. Balance of exports and imports of industrial washing machines in India 2019-2021, million Rs.
4.4. Export structure
At the end of 2021, Indian-made industrial washing machines were exported to just 10 countries.
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Part 5. Analysis of the consumption of industrial washing machines
5.1. Dynamics of consumption volume of industrial washing machines
Estimation of per capita consumption of industrial washing machines was made by GidMarket on the basis of the ratio of the volume of the Indian market of industrial washing machines in monetary terms to the population of India.
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5.2. Analysis of the results of tenders for the purchase
We will analyze tenders for the purchase of industrial washing machines announced from 01.01.2021/31.12.2021/ to / / . The source for the analysis was Awindex data.
For the period from 01.01.2021/31.12.2021/50 to 90/ / , more than tenders for the purchase of industrial washing machines were announced, of which more than % ended with the signing of a contract. It should also be noted that a significant part of the tenders was of a complex nature, that is, industrial washing machines were purchased together with other types of laundry equipment and consumables, equipment sets. The amounts of contracts, which included only industrial washing machines, often did not have a high value, so the purchase item usually took place in a complete set for the organization of laundries.
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Analysis of information on competitive purchases of industrial washing machines showed:
- As a rule, most of the announced tenders are placed for the purpose of concluding a contract, and not for analysis and request for prices, request for quotations and proposals.
- Customers are often interested in the complex purchase of industrial washing machines along with other laundry equipment (tumble dryers, ironers, sewing machines).
- Data on purchases of industrial washing machines (including those in combination with other laundry equipment) are placed in the public procurement system infrequently - 4-5 purchases per month.
Part 6. Price Analysis
6.1. Average producer prices by union territories
According to Rosstat data, only two federal districts (the Central Union Territories and the Volga Union Territories) have data on average producer prices. In this connection, the table below presents data on the average prices of manufacturers of industrial washing machines in India as a whole, as well as in the Central and Volga Union Territories.
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6.2. Average consumer prices by states in India
Taking into account that data on average consumer prices for industrial washing machines both in India as a whole and in the context of federal districts and states in particular are not available in the Rosstat system, the calculation of average consumer prices for the states of India was made by GidMarket analysts based on average prices of suppliers of industrial washing machines presented in open sources (official websites). Data on average consumer prices for industrial washing machines were calculated for those Indian states that have high shares in the sales revenue structure.
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Part 7. Assessment of the investment attractiveness of the market
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The most significant negative factors.
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The most significant positive factors.
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Part 8. Forecast for the development of the market for industrial washing machines until 2026
We will carry out a market forecast based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
Forecast of the Indian market of industrial washing machines, compiled by GidMarket for the period 2022-2026. takes into account the trend of the market size of industrial washing machines in 2017-2021. and predictive impact on the level of demand of key macro factors.
At the same time, the following factors are significant for the market forecast:
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Part 9. Recommendations and conclusions
According to GidMarket calculations based on data from Rosstat and market operators, in 2021 the market volume of industrial washing machines in monetary terms amounted to ...
In general, the influence of macro factors on the market of industrial washing machines in India is assessed by GidMarket as positive.
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Diagrams
Diagram 1. The ratio of imported and domestic products in the market of industrial washing machines,%.
Diagram 2. Dynamics of the market volume of industrial washing machines in India, 2017-2021, million Rs.
Diagram 3. Revenue (net) from the sale of industrial washing machines by union territories for 2017-2021, %.
Diagram 4. Dynamics of India's GDP, 2017-2020, Q3 2021, % to the corresponding period of the previous year
Chart 5. Quarterly dynamics of the official exchange rate of the US dollar against the rupee 2017-2021, Jan. 2022, Rs./USD
Diagram 6. Dynamics of the industrial production index of India, 2017-2021, % to the previous period
Chart 7. Dynamics of the number of laundries and dry cleaners in India, 2017-2021, thousand units, %
Diagram 8. Population dynamics, as of January 01, 2012-2021, million people
Chart 9. Dynamics of the unemployment rate in India, 2017-2021, %.
Diagram 10. Dynamics of real money income of the population of India, 2014-2020, Q3 2021, % to the previous period.
Chart 11. Shares of the largest competitors in the industrial washing machine market, 2021, %
Diagram 12. Dynamics of the total revenue of the TOP-5 largest manufacturers, 2016-2020, billion Rs.,% of the previous period
Diagram 13. Dynamics of production volumes of industrial washing machines in India for 2017-2021, pieces,% of the previous period
Chart 14. Share of exports in the production of industrial washing machines in India, 2019-2021, %
Diagram 15. The structure of production of industrial washing machines by states of India in 2021,%
Diagram 16. Volume and dynamics of imports of industrial washing machines in India in monetary terms 2019-2021, million Rs.
Chart 17. Structure of imports of industrial washing machines by importing countries in 2021, %
Chart 18. Dynamics of exports of industrial washing machines in India in monetary terms 2019-2021, million Rs.
Chart 19. Balance of exports and imports of industrial washing machines in India 2019-2021, million Rs.
Chart 20. Export structure of industrial washing machines by country in 2021, %
Chart 21. Dynamics of consumption of industrial washing machines in India in monetary terms, 2017-2021, Rs./person
Diagram 22. Forecast of the market size of industrial washing machines in India in 2022-2026, pcs.
Tables
Table 1 STEP Analysis of Factors Influencing the Industrial Washing Machine Market in India
Table 2. The main companies participating in the industrial washing machine market in 2021
Table 3. Profiles of companies participating in the industrial washing machine market in 2021
Table 4. Basic information about the participant No. 1 of the industrial washing machine market
Table 5. Basic information about the participant No. 2 of the industrial washing machine market
Table 6. Basic information about the participant No. 3 of the industrial washing machine market
Table 7. Basic information about the participant No. 4 of the industrial washing machine market
Table 8. Basic information about the participant No. 5 of the industrial washing machine market
Table 9. Basic information about the participant No. 6 of the industrial washing machine market
Table 10. Basic information about the participant No. 7 of the industrial washing machine market
Table 11. Basic information about the participant No. 8 of the industrial washing machine market
Table 12. Basic information about the participant No. 9 of the industrial washing machine market
Table 13. Basic information about the participant No. 10 of the industrial washing machine market
Table 14. Tenders for the purchase of industrial washing machines in India, announced from 01.01.2021/31.12.2021/ to / /
Table 15. Average Producer Prices in the Industrial Washing Machine Market by Union Territories in India, 2020-2021, Rs.
Table 16. Average consumer prices in the market of industrial washing machines by states of India, Rs.
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