“To foster greater R&D and technology adoption in the Indian machine tool sector, a multi-pronged approach is essential. Government incentives such as enhanced tax breaks, grants, and faster approvals can ease the financial burden of innovation. Stronger collaboration between industry and academia will help bridge the gap between research and market needs,” says D. Shanmugasundaram, Vice President, TAGMA (Tool and Gauge Manufacturers Association of India) and Managing Director, S&T Groups, in conversation with Neha Basudkar Ghate.
As Vice President of TAGMA, what do you see as the most pressing challenges and opportunities facing the Indian tooling industry today, particularly in the context of increasing global competition and rising imports from countries like China and Korea?
The Indian tooling industry is facing intense competition from low-cost imports, especially from countries like China and Korea. Many toolrooms still rely on outdated technologies, resulting in longer lead times and inconsistent quality. Additionally, the sector’s fragmentation particularly among SMEs hampers scalability, standardisation, and overall competitiveness. However there are several promising developments. Government initiatives like Make in India and PLI schemes are driving local manufacturing growth. Rising demand from automotive, EV, aerospace, and defense sectors offers strong growth potential. Embracing Industry 4.0 and digital manufacturing can significantly enhance productivity.
Tooling clusters and public-private partnerships are playing a key role by supporting skill development and enabling shared resources. By focusing on high-precision niches and exports, India can elevate its global position. Strategic modernisation and workforce training are vital to thrive amid global pressures.
With the Indian tooling industry projected to reach a value of INR 26,000 crore by 2025, what strategies should Indian tool rooms and die and mould manufacturers adopt to capitalise on this growth and reduce reliance on imports?
To capitalise on the INR 26,000 crore tooling market by 2025, Indian tool rooms should:
- Upgrade to advanced CNC, CAD/CAM, and automation technologies.
- Invest in skilling and training to build a high-quality workforce.
- Develop indigenous dies/moulds to substitute critical imports.
- Collaborate with OEMs and R&D bodies for co-innovation.
- Expand production to meet rising sectoral demands.
- Embrace Industry 4.0 tools for smart, efficient manufacturing.
- Obtain global quality certifications to boost exports.
- Utilise government support under Make in India and PLI schemes.
How do you see the adoption of advanced technologies and automation shaping the future of Indian tool rooms, especially for Small and Medium Enterprises (SMEs)?
The adoption of advanced technologies and automation is set to significantly transform Indian tool rooms, particularly benefiting SMEs in the following ways:
- Improved Productivity: CNC machines, CAD/CAM software, and automation reduce cycle times and manual errors, increasing throughput.
- Precision & Quality: Smart technologies ensure consistent, high-quality output essential for global competitiveness.
- Cost Efficiency: Although initial investments are on the higher side, automation reduces long-term operating costs and wastage.
- Skill Upgradation: Technology adoption encourages SMEs to invest in workforce training and creating a skilled labour pool.
- Better Resource Utilization: IoT and AI enable predictive maintenance and optimise machine usage, improving overall efficiency.
- Global Integration: Advanced capabilities allow SMEs to become part of international supply chains and meet stringent OEM standards.
In your experience, what role does government policy—such as rationalisation of duty structures and access to finance—play in supporting the growth and competitiveness of the Indian tooling industry?
Government policy plays a crucial role in boosting the growth and global competitiveness of the Indian tooling industry. The rationalisation of duty structures reduces the cost of importing raw materials and components, making manufacturing more cost-effective. Access to finance, particularly at low interest rates, empowers MSMEs to invest in modern equipment and automation technologies. Initiative like Production-Linked Incentive (PLI) and ‘Make in India’ Schemes encourage domestic manufacturing of tools and dies. Additionally capital subsidies and tax incentives support the modernisation and expansion of tool rooms across the country. Export incentives further supports Indian tooling companies in competing effectively in global markets, strengthening the industry’s international footprint.
You were recently featured in The CEO Magazine, where your journey from humble beginnings to building a global manufacturing presence was highlighted. How has this recognition influenced your vision for S&T Group and the Indian manufacturing sector going forward?
Being featured in The CEO Magazine has been a humbling and inspiring experience. It not only validates the hard work and dedication by the team S&T in building S&T Group from the ground up but also reinforces our commitment to shaping the future of Indian manufacturing. This recognition has amplified our sense of responsibility to lead by example, by embracing innovation, fostering skill development, and promoting self-reliant production ecosystems.
It has also strengthened our resolve to expand globally while staying rooted in India’s Atmanirbhar Bharat vision. The journey ahead is about scaling impact, investing in R&D, and collaborating across ecosystems to position India as a world-class manufacturing hub.
Motivating and retaining talent is crucial in a competitive industry. What approaches do you use to foster a culture of innovation and accountability among your employees, especially during times of rapid change?
Motivating and retaining talent during periods of rapid change demands creating a culture rooted in innovation, purpose, and accountability. We focus on building psychological safety within the organisation, empowering employees to share ideas and learn from failure. Clear communication helps align individual roles with our broader vision. We make it a point to recognise and reward innovation, reinforcing a mindset of continuous improvement. Along with this, transparent goals and regular feedback mechanisms are in place to promote accountability across teams. To stay future-ready and adaptable, we encourage ongoing learning and agile practices. Above all, leadership sets the tone by modelling the values we expect from others.
The recent collaboration between STM and Averex Taiwan introduces advanced HMC machines to the Indian market. How do such global partnerships contribute to the technological advancement and competitiveness of Indian manufacturing?
The collaboration between STM and Averex Taiwan significantly boost Indian manufacturing by introducing advanced technology machines such as high-precision HMCs. Such collaborations also promote knowledge transfer and skill development among the local workforce. Our STM Plastic Injection Moulding Machines and Laser Cutting Machines resonate Chinese Technology, while the STM CNC Vertical Machining Centers and Cylindrical Machines Technology are developed using Taiwanese technology. All these machines are entirely manufactured at our Indian factory based at Coimbatore. These machines enhance productivity, efficiency, and quality standards. By reducing import dependency and fostering domestic innovation, these initiatives strongly support the ‘Make in India’ initiative. SMEs benefit from access to world-class tools, helping them scale and compete globally. Additionally, these technologies open avenues for exports by aligning Indian output with global expectations. Overall, these partnerships drive competitiveness and long-term industrial growth.
How is S&T involved in the manufacture of multiple product lines, including VMCs, Grinding machines, Injection Moulding Machines, and Laser Cutting Machines?
S&T began its journey as a trading company, primarily importing and distributing high-end machine tools in India. Recognising the limitations of relying on imports, S&T decided to localise production. Decades long close relationships with our trading partners and recent government anti-dumping policies, paved us the way to lay the foundation for our transition from a trading house to a full-fledged manufacturing enterprise. Backed by government initiatives like ‘Make in India’ and increased demand for domestic manufacturing, the company strategically diversified into producing Vertical Machining Centers, Grinding Machines, Injection Moulding Machines, and Laser Cutting Machines. These product lines were selected to serve a broad spectrum of industries. By leveraging technical transfer from collaborations and shared infrastructure, we ensure cost efficiency and scalability.
Our manufacturing approach integrates precision engineering with user-centric features tailored to Indian conditions. In-house R&D, supported by global technical collaborations, has allowed us to deliver reliable, high-performance machines. Furthermore, our established service network gives us a strong after-sales edge. S&T’s multi-line manufacturing strategy reflects a natural evolution, driven by market demand, technical capability, and a long-term vision to be a comprehensive solutions provider in the machine tool and industrial automation space.
The machine tool industry is rapidly evolving with trends like automation, Industry 4.0, and sustainable manufacturing. How are Indian machine tool manufacturers adapting to these trends, and what impact do you foresee on productivity and quality?
Indian machine tool manufacturers are rapidly adopting automation and digital technologies. The adoption of CNC machines and robotics is significantly improving precision and reducing human errors. Technologies like IoT and real-time monitoring are enabling predictive maintenance and ensuring higher equipment uptime. Industry 4.0 tools such as digital twins and data analytics enhance decision-making. As a result, smart factories are emerging with integrated connected production systems. Sustainability is also gaining focus, with manufacturers investing in energy-efficient machines and adopting green practices. Collectively, these innovations are boosting productivity, reducing the operational costs, and improving product quality. Ultimately, these practices are strengthening India’s competitiveness in global manufacturing.
Given the volatility in commodity prices and increasing environmental regulations, what strategies should machine tool manufacturers adopt to ensure resilience and sustainable growth?
To ensure resilience and sustainable growth, machine tool manufacturers should adopt energy-efficient technologies and eco-friendly practices. Diversifying raw material sources helps manage commodity price fluctuations. Investing in green R&D ensures compliance with environmental norms. Embracing automation and Industry 4.0 boosts productivity and reduces waste. Localised and sustainable supply chains enhance operational stability. Circular economy practices like recycling and remanufacturing further support long-term sustainability.
R&D investment is often seen as a path of innovation in the machine tool sector. In your view, what more can be done to encourage R&D and the adoption of advanced technologies among Indian manufacturers?
To foster greater R&D and technology adoption in the Indian machine tool sector, a multi-pronged approach is essential. Government incentives such as enhanced tax breaks, grants, and faster approvals can ease the financial burden of innovation. Stronger collaboration between industry and academia will help bridge the gap between research and market needs.
Dedicated innovation clusters and shared infrastructure can make high-end tools accessible, especially for MSMEs. Skill development in advanced domains like AI, robotics, and mechatronics is equally crucial. Streamlined IP protection and support for global patenting will encourage indigenous innovation. Public procurement policies favouring locally developed technologies can also create strong market incentives for R&D.
This interview was published in TAGMA Times
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