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Industry Sector - Opportunities for India

Spain has advantages in the below mentioned Industrial sectors which is advantageous to Indian sectors as well. They are:

Renewable Energy | Aerospace | Electronics, IT and telecommunications | Railways | Machinery and Industrial Technology

RENEWABLE ENERGY

Spain is the world second biggest wind-generated power producer in wind energy. Isofoton company is Europe´s leading manufacturer of solar panels. Abengoa Bioenergía first produces of bioetanol in Europe. The percentage of total electrical output production with renewable energy in Spain was 19.8% in the year 2007. It is expected to rise to 30.3% by the year 2010.

Wind Power

7% of the total energy production in wind power in the year 2005 came from Spain. The Spanish Government strongly promotes this sector. There were about 10 MV wind power energy installed in Spain by the year 2005. It is expected to rise over 20 MV by the year 2010.

A) Case Study: GAMESA

Gamesa is a leading international manufacturer of wind turbines in the world and leader in design and development. Its activities are organized around:

  • Promotion, construction and sale of wind farms
  • Engineering, design, manufacture and sale of wind turbines
  • Energy Solutions

A total of 114 wind farms have been constructed in Spain, Germany, Italy, Portugal, U.S., Greece and France. The group still continues growing. It will also be present in UK, Sweden, Poland, Romania, Bulgaria, Mexico, Brazil, Uruguay, Dominican Republic and China

Advantages with INDIA

India currently has an installed power generation capacity of 124 GW. It suffers a major difference between supply and demand. Energy sector requires an inversion of 12,000-15,000 million USD over the next five years to modernize and cope with the supply crisis with the present situation. The huge economic growth that is taking place in the country has given arise to the need for modernization has become even more vital. India will double its energy consumption by 2025 at this rate of growth. Suitable energy model is essential for the economic and social development of a country. India should improve its efficiency to meet its energy deficit. At present coal is the main source of energy on which the country may not sustain the dependability for long. Hence it is necessary to think in the long term and develop modern and clean energies. Partnerships and the private and foreign participation are necessary to cope with a growing demand and achieve the standards of operational efficiency and quality of the supply. The total percent of electrical output production with renewal energy in INDIA is 4.9% in the year 2007. It is expected to rise by 10% by the year 2012.

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Aerospace

Spain is world leader in:

  • Composites
  • Manufacturing and maintenance of small-medium aircrafts

They are leaders in gas-turbine engines and flight simulators. Spain also has excellent Air traffic control programmes: 3 of 5 flights are controlled by Spanish technology

A) Case Study: INDRA

INDRA is an IT and defense system company. Its air traffic control systems are used by countries that manage a third of the world’s air traffic. In the year 2004 it was recognized as European leadership with the best technology award.

B) Case Study: GAMESA AERONÁUTICA

Spanish company competing globally. It conducts its activities in Spain, Brazil and the U.S. Gamesa Aeronáutica is currently a group formed by 18 companies, with about 2,700 employees. Its activities include engineering design, development, testing, certification and manufacture of large structural equipped for all types of aircraft. Its order book includes the leading manufacturers of aircraft and helicopters, such as Airbus, Boeing, Bombardier, EADS, Embraer, Eurocopter and Sikorsky.

Advantages with INDIA

The market for Indian aircraft and airports is estimated close to 2.50 - 3 billion USD with over 80% of imports. Large companies like Hindustan Aeronautics Limited (HAL), HCL, Wipro, Infosys, TCS, BAeHAL, Indo-Russian Aviation Limited, Satyam are into Aerospace and Aero technology sector. A cluster of 1,200 SME aerospace companies has been created in India. U.S. currently has a market share of approximately 35% of these imports. The EU is positioned as the next trading partner of India, ever closer to the values of U.S. India is in the process of establishing a domestic industry with its own production through collaboration with the leading European and world manufacturers. There is incredible growth of civil aviation sector (a 40% increase from the period 2005-2006 to 2006-2007) represents a major boost in the sector. This sector represents one of the fastest growing markets in civil aviation. It is expected that the growing number of airlines acquire around 1000 aircraft over the next 20 years. There are enormous opportunities to be explored in the Indian Aviation/aerospace market. India needs civil aircraft worth US$ 40 billion in next ten years.

  • Airport infra-structure worth US$ 3.5 billion required during the current decade.
  • Maintenance market including spares currently estimated to be US$ 100 million annually
  • India’s defence budget exceeds US$10 billion annually

The offset policy will boost the sector. It expects the beneficiary companies to invest 30 percent of the deal value in India, if the deal crosses $70 million

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Electronics, IT and telecommunications

Spain has strong position in electronics and technology development. It’s good in Simulation equipment and Telecommunications. The traffic monitoring systems has excellent reputation in Software applications and financial services. The e-ID systems have strong reputation in Art digital TV. In Satellite, cable and terrestrial equipment, Telefónica is the third largest telecom company in the world.

A) Case Study: TELEFÓNICA

It’s the world leader in telecommunications sector. The company is approaching 150 million customers. It has a huge percentage of business outside Spain. It’s the leading operator in Brazil, Chile, Argentina, Peru. It is also working in Colombia, Ecuador, Morocco, etc. Telefonica provides services such as fixed telephony and broadband, mobile and internet. It is owner of O2 and Terra companies. Innovation is the key of its success.

Advantages with INDIA

It is the fastest growing segment of the country. India is globally the second largest one in the software industry and IT services employing over 650,000 people. The total market size is estimated at 35,000 million USD. Some international companies present in the country like IBM, Microsoft, Hutchison, France Telecom, AT & T, Singapore Telecom, Motorola, Ericsson, etc. Another big boost, apart from domestic demand, is the internationalization of software development to India by major global IT companies. The IT companies of India are operating within the framework of global and are growing steadily. The development of communications infrastructure has become a priority area: The government is determined to match the rest of the countries.

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Railways

Spain has experience and expertise to compete successfully in markets. The Spanish railways have great success in mass transit systems around the world. It has

  • Subways in Mexico, Washington, Pittsburgh, Rome, Hong Kong
  • Tramway systems in Sacramento
  • Northern Spirit commuter line in UK etc

A) Case Study: AVE “Alta Velocidad Española”/ “Spanish High Speed”

The rail network is part of governments Strategic Infrastructures and Transport Plan (2005-2020). The total investment is nearly €250,000 million. A Train´s maximum speed is of at least 300 kmph. They have plans for construction of 10,000 kilometres railway line by 2020. 90% of Spanish population is within the reach of 50 kilometres of a high-speed railway station.

B) Case Study: METRO DE MADRID

This was inaugurated in the year 1919. It is the sixth network in the world by miles and the fastest expanding railways at present. It has 318 stations and with a total coverage of 218.38 kms. The network is largely underground on its extension. It consists of 12 lines and a branch.

Advantages with INDIA

The Indian railway system was founded in the year 1853 and is one of the largest in the world. It became the main form of transportation in the country. It is an extremely efficient transport system with consumption of 1/4 part of what it road transport consumes with less pollution and is safer. It is of great importance for the Indian economy and day-to-day life. It is the principal means of transportation in the country but has lost much of its former glory. It has a very old technology which needs urgent revision, expansion and improvement to cope with the increasing demand for capacity for passenger and freight traffic. It is necessary to improve existing lines, the utilization and its safety. It must be an inversion in the modernization and purchase of signaling systems and telecommunications.

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Machinery and Industrial Technology

Spain is the third largest machine-tool and engineering manufacture in the European Union. It is the leader in machine technology and manufacturing.

A) Case Study: LINDEN COMANSA

It’s the world leader in flat-top tower cranes. Since it began in 1963 has sold 14,000 cranes. Its products are in 5 continents and in more than 30 countries. In 2005 it opened the world´s most modern crane factory.

B) Case Study: DANOBAT GROUP

Its inception took place 25 years ago. Its products are aircraft engines and landing gear and gas turbines for power generators. It is taken as a bench mark/ industry reference point for state of the art solutions. It’s the world´s main supplier of solutions for the machining and measuring of high and low speed blade-tip grinders

Advantages with INDIA

In India the highest quality machine tool usually comes from Japan, U.S., Germany and other European countries (Spain is the fifth of Europe). The simple machine tool is imported mainly from China. The main sectors of machine tools in India are the automotive industry (40%), capital goods, consumer durables and intermediate goods industry. Hence there is a lot of scope for this industry to work with India.