India Steel Wire Rope Market Research Report: Ken Research


How Steel Wire Rope Market Is Positioned in India?

The steel wire rope industry’s life cycle curve has become noticeably flatter and the market has reached to a matured stage, indicating slower growth. The demand for steel wire ropes is extensive in domestic and international market owing to the reliability and durability of the ropes. There are no viable alternatives to wire ropes and they are required in various construction and engineering projects for material handling, lifting & suspension purposes.

 In terms of revenue, the market size of steel wire ropes declined during FY’2013 – FY’2018, at a CAGR of ~% from INR ~ billion in FY’2013 to INR ~billion in FY’2018.

Declining revenues from Oil and Gas Industry and drastic reduction in the number of total mines was the primary reasons for the market contraction. Whereas, increasing government spending on infrastructure projects like Smart City Mission and “Housing for All” to improve infrastructure and housing facilities acted as supports to the steel wire rope industry.

The development in the mining industry severely impacted the integrated wire rope manufacturers as well as the steel raw material suppliers as cooking coal is used in the production of steel.

The number of total operational mines in India also registered a steep fall in FY’2015 of ~% because the Supreme Court termed the allocation of 214 coal blocks as illegal.

However, the growth in FY’2017 was negative with the industry contracting by ~% from FY’2016 due to demonetization. The government measure led to unforeseen supply chain and labour issues for the manufacturers, especially in the unorganized sector. User industries such as construction and mining were also affected which have contracted market demand.

Bedmutha Industries started production of steel wire ropes in FY’16, whereas Bharat Wire Ropes operationalized their Chalisgaon Plant in FY’2017. The increased production in a market with muted demand led price cut which has contracted market revenues.

Which Type of Sales is genertaing more Demand for Steel Wire Ropes in India?

Major chunk (~ %) of revenue earned by sales of Steel Wire Ropes in FY’2018 has been derived from domestic sales. Black wire ropes have the highest production and demand in the domestic market primarily due to economical pricing. Usha Martin, Bedmutha and other smaller organized and unorganized players compete in the domestic market. The revival of the construction and mining sector is expected to create demand in the future. The Indian Standards are followed for domestic sales, they include IS 1855, IS 1856, IS 2266, IS 2365 and IS 2581 among others.

Export sales are generated owing to the fact that Indian Manufacturers have a cost advantage due to cheap labour, which are being passed on to the users. The domestic manufacturers are still able to retain better margins in export sales instead of domestic sales. The decline in exports is due to stagnant oil and gas sector which is primarily situated in geographies like the Middle East. Major export sales from India have been to North America, Middle East and European countries. The firming up of crude oil prices has again made E&P activities viable. This is expected to increase orders for wire ropes in the Middle East as well as northern Europe. Certain International standards are ISO 2408, ISO 4309 and ISO 12076.

Which Type of Coating is in More Demand in India Steel Wire Rope Market?

In FY’2018, Black wire ropes are the best selling ropes in India due to their economical pricing and contribute to almost ~% of the sales generated domestically. Black steel wire ropes are majorly used in the infrastructure and mining industry. However, in the international markets, especially in developed countries, they have limited uses due to the fact that they have a lower life than that of galvanized ropes.

Zinc is most commonly used to galvanize steel wire ropes. In case of exports, the galvanized ropes are most demanded due to their long shelf life, especially in the developed markets such as UAE and European countries. The demand is almost to the tune of ~%. However, owing to the fact that most rope manufactured in India is black rope, only ~% of total exports is of galvanized ropes.

Other types of coating may include plastic coated, plastic filled or compacted steel wire ropes. They are used in special applications and as such are a niche product.

Which Industry is generating more Demand for Steel Wire Ropes in India?

Engineering and Construction segment has contributed the largest share of ~% in terms of revenues in FY’2018 from sales of wire ropes. A cluster of infrastructure projects is being formed in the Northern and Western regions due to projects such as Delhi-Mumbai Industrial corridor and real estate activity in Delhi NCR and Mumbai Region.

The revenues of wire ropes from Oil and Gas industry have declined drastically over the last few years due to the oil price decline which have initiated since FY’2014. However, the oil prices have been increasing again since FY’2017 and there is resurgence in activity in this industry.

The share of Mining sector has remained relatively stable over the past few years. The demand for wire ropes used in the mining and quarrying industry mainly emanates from the eastern and central region due to the large mineral reserves in those geographies.

The share of revenue generation from wire rope has increased because of renewed focus on ports, maritime trade and inland waterways.

Other steel wire ropes include specialized ropes such as fishing rope contributed a share of ~% in terms of revenue in FY’2018.

How UN-Organized and Organized Sector Performing IN India Steel Wire Rope Market?

In FY’2018, unorganized players have dominated the market with a share of ~% in terms of sales volume. There has also been significant capacity addition in the industry and entry of Bedmutha Industries in the market has been the major reasons behind significant contribution to the growth of organized sector. Various government departments and Public Sector Undertakings issue tenders for the purchase of steel wire ropes in India which is usually catered by the organized players. Some of the organized players are Usha Martin Limited, Bharat Wire Ropes Limited, Bedmutha Industries Limited, Asahi Ropes Pvt. Ltd., Mahadev Ropes Pvt., Orion Ropes, Desh Wire Products Pvt. Ltd, Shree Vardhman Wire Ropes, Aradhya Ropes and Slings Pvt. Ltd., and others.

The share of unorganized players is declining due to the fact that such players fails to meet quality standards and hence are not able to meet the standards laid down by the end user industries. Difficulties in obtaining quality accreditations and extremely low volumes have made several players move out of the market. Some of the unorganized players are Hard Tools Pvt. Ltd., B. C. Marine Stores Supply Co., Gaurav Wire Ropes and others.

Which Type of LAy is in more Demand in India Steel Wire Ropes?

Regular lay wire ropes dominate the steel wire rope industry due to their versatility and accounted for ~% of total production of wire ropes in FY’2018. Regular Lay has the widest range of applications and meets the requirements of most equipment due to its versatility and therefore, is the default industry standard. Regular lay ropes are suitable for all general work are used in most industry applications such as infrastructure, material and load handling, Fishing and others. Regular lay ropes offer a better structural stability than other kind of ropes.

Lang lay wire ropes are used in elevator and mining industries and made up for ~% production. Lang lay ropes have increased flexibility and wear resistance. Therefore, they are used in elevator industry and certain mining applications. Lang lay is recommended in many excavating, passenger and freight elevators, and certain mining applications, including draglines, hoist lines, dredgelines and other similar lines.

Alternate lay wire ropes accounted for the remaining ~% of the production volume. Alternate lay ropes are mainly used for special applications, for instance, a boom hoist rope and winch pipes.

Which Region is generating more Demand for Steel Wire Ropes in India?

Western region is the largest market in India, and made up for ~% of total domestic demand for steel wire rope. This is due to the presence of major ports, mines and enhanced infrastructure activity in the western region. Western Region is the biggest steel wire rope market in the country, with just Maharashtra alone consuming around ~ MTPA of steel ropes. The demand drivers include ports, mines, elevators, infrastructure as well as the industrial sector.

Southern region is the second largest market and accounts for ~% of orders. A distinct feature of this market is the demand for fishing ropes due to the long coastline and large aquaculture industry.

Northern Region comes at a close third with ~% of total wire ropes demanded in the country. The major industries driving the growth include infrastructure, elevators, and general engineering. A key feature of this market is that the share of dealer and distributor led sales is higher than rest of the country.

The eastern region accounts for the remaining ~% of demand. The demand is generated from mining and industrial activity along with cranes.

What is competitive Scenario in India Steel Wire Rope Market?

The Indian steel wire rope market is an extremely competitive market due to a mixture of increasing production of manufacturers and declining demand from user industries. The competition is more pronounced in the domestic market, due to a drastic reduction in the number of mines during FY’2015. The steel wire rope industry is monopolistic and dominated by organized players contributing almost ~% revenues to the overall market. Usha Martin Ltd. is the leading company in terms of revenues and production volume in India steel wire rope market. Bharat wire is the second largest company followed by Bedmutha Ltd. The other major companies in India steel wire rope market are Aradhya Ropes and Slings Private Limited, Asahi Ropes Private Limited, Orion Ropes Private Limited, Shree Steel Wire Ropes Limited and Mahadev Industries. Majorly the companies are following the two strategies which include increasing premium product portfolio and competing on high volume-low cost basis for base products. There are very few players in the unorganized sector due to extremely low volumes.

What is the Future Outlook for Steel Wire Rope Market in India?

The Indian steel wire rope market, in terms of revenue is expected to increase at a CAGR of ~% during FY’2018-FY’2023 owing to infrastructure projects like Housing Projects, AMRUT, Smart City Mission and DMIC, along with resurgence in demand due to growth in mining industry as well as Oil and Gas industry.

The resurgence in the Oil and Gas industry is expected to increase the number of oil rigs which will further add impetus to the growth of steel wire rope industry.

Steel Wire Rope market value majorly depends on growth of end user industries and CAPEX been laid by private and public participants in the market.

In terms of value, steel wire rope market in India is anticipated to grow from INR ~ billion in FY’2018 to INR ~ billion in FY’2023. The production capacity in India has increased from FY’2013 till FY’2018, which would allow manufacturers to cater to the expected growth in demand for steel wire ropes.

However, high debt levels of manufacturers and actual implementation of infrastructure projects remain a concern for the industry.

Key Topics covered in the reports

Manufacturing Steel Wire Rope

Domestic Sales Steel Wire Rope India

Galvanized Steel Wire Rope Market

India Steel Wire Rope Coating

Steel Wire Rope India Engineering and Construction

Challenges Steel Wire Rope India

Order Book Steel Wire Rope India

Order Process Steel Wire Rope India

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