Indian Diamond Tool Industry Market Analysis Report

The year-end economic assessment report released by the News and Information Agency of India on December 29th shows that India's Gross Domestic Product (GDP) has now surpassed Japan, becoming the world's fourth largest economy. The sustained high-speed development of the Indian economy has also driven the growth of the Indian stone and diamond tool industries. India is a world-renowned producer of stone and therefore a major market for the diamond tool industry. There are a very large number of stone processing workers and diamond tool workers here. Now let's briefly analyze the diamond tool industry in India.

 

First, let's look at two sets of official Indian data:

• On June 8, 2017, the Hindustan Times reported that Prime Minister Modi announced on June 7 that India's foreign direct investment (FDI) had increased from approximately US$34.5 billion in 2013 to US$61.7 billion.
• On June 21, 2017, the Modi government announced that it would spend US$61.46 billion on infrastructure construction in India in 2017.

 

From the above information, it appears that India is currently learning from China's reform and opening-up policies and engaging in large-scale economic development. This presents us with tremendous business opportunities, but also significant challenges.

 

Business Opportunities:

This $614.6 billion infrastructure construction project includes the construction of roads, railways, bridges, airports, ports, power plants, affordable housing, schools, and hospitals. Many of these projects will require stone, concrete, and asphalt, presenting significant business opportunities for manufacturers of stone processing tools, concrete and asphalt cutting tools, etc.

 

From the perspective of the stone industry, India is not only a large country in terms of population but also a major producer of stone. Currently, many well-known granite varieties in the domestic market come from India, such as British Brown, Indian Red, and Black Galaxy.

 

India possesses abundant stone resources and is one of the largest reserves of various types of building stones, such as granite, marble, sandstone, limestone, slate, and quartz, which are distributed throughout the country. These stones come in a wide variety of colors and patterns, with different characteristics and physical and chemical properties, making them suitable for diverse applications.

 

 

 

Currently, India has developed into a major stone-producing country with the capacity to produce and process large slabs, floor tiles, structural panels, as well as equipment for installing and fixing panels, monuments, tombstones, sculptures, artifacts, pebbles, curb stones, and landscaping stones.

 

India is also one of the world's largest producers of raw stone materials. This industry is particularly well-developed in the northwestern states of Rajasthan and Gujarat. Besides numerous well-known raw stone processing companies, there are also many Indian manufacturers of stone machinery and diamond tools, all of which contribute to the thriving development of the Indian stone industry.

 

From traditional stone buildings to natural stones used in modern buildings, India's annual domestic consumption has exceeded 1.25 billion US dollars, and its export volume exceeds 27% of the world's total, ranking third in the world's export volume. India's stone production accounts for 10% of the international market.

 

Its main export countries of natural stone are: the United States, Italy, Taiwan China, Japan, Germany and China Mainland. Mining activities occur throughout the country, and their activities depend on the geology of each region. In the south of India, siliceous stones are common, while in the northwest, sandstone and travertine containing calcium and precipitation are mostly found. According to data from Stone of India, India's granite and granite products account for about 20% of the world's resources.

 

Nowadays, There are estimated to be more than 1.69 billion hectares of unmined granite, about 1.2 billion hectares of unmined marble, about 1 billion hectares of unmined sandstone, and about 500 million hectares of slate stock. These stones all require our diamond tools for primary processing and deep processing, which is a huge business opportunity for us.

 

Indian stone is currently divided into two regions: north and south. The southern region is dominated by Bangalore, Madurai, Hyderabad and surrounding cities. Stones are generally soft. The representative ones are sandalwood brown (British brown) (medium hard) and black gold sand. (Soft); The northern region is centered on Rajasthan and includes the cities of Jallore, Jodaipur, Udaipur, Rajasama, Jishanggarh and Kota. There are a wide variety of stone materials, including marble. , granite, sandstone and limestone. The hardness of stone also varies from hard to soft, and the requirements for diamond tools are also on the higher side.

 

Let's take the northern region of India as an example:

Marble is mainly distributed in the two cities of Ajmer and Rajasama, and is mostly cut with 1.6-meter single-blade saws and gang saws. There are about 1,600 single-blade saw machines and about 200 groups of gang saws in the Rajasama area. The saw machines in Ajmer are about half of those in the Rajasama area. The Diamond Segments demanded by the entire market require very good sharpness, but Prices are generally low, so Indian Diamond Segment generally occupy this market.

 

Granite is mainly distributed in the two cities of Jallore and Jishanggarh. It is mostly cut with a 2000mm single-blade saw and a combined saw with a 5.5mm-thick and 6.5mm-thick base. There are about 2,000sets of 2000mm single-blade saws and 250 sets of combination saws in the Jallore area. There are about 800 sets of single-blade saws and about 400 sets of combination saws in Jishanggarh.

The total consumption of Diamond Segments in the two regions: about 11,500 pieces of Diamond Segment for a 2000mm single-blade saw, and about 390,000 pieces of combined Diamond Segments. If a 2000mm Diamond Segment is paid on average at US$65, the monthly market capacity is: 11,500*65=US$747,500. Calculated based on an average of US$0.38 per piece of combined saw blades, the monthly market capacity is: 400,000*0.38=US$152,000. The total capacity of the Diamond Segment alone is conservatively estimated to be nearly US$900,000. At present, the market is basically divided into three parts. China's Wanlong diamond segment accounts for about 1/3, and local Vinayak Diamond Tools and other gadget manufacturers account for about 1/3. China's Zhongzhi diamond tool, Exin diamond tool, Shuangyang diamond tool, fuli, Linxing, etc. Account for the remaining 1/3.

 

Sandstone is mainly distributed in the two cities of Jodaipur and Kota. Jodaipur is mainly cut with 1350mm and 1600mm single-blade saws. The consumption of Diamond Segment is about 2,500 pieces per month. 1350mm account for 1/3 and 1600mm accounts for 2/3. Market price of 1350mm diamond segment: 30 US dollars/pay,1600mm about 45 US dollars/pay, market capacity: 25000+75000=100000 US dollars. At present, the market mainly includes Zhongzhi diamond segment, Shuangyang, Exin and India's local Vinayak, which share the market equally.

 

Limestone, mainly distributed in Kota, is also used for single-blade saws of 1350mm and 1600mm. The consumption of Diamond Segment is about 1200sets/month. Since end customers require the Diamond Segment to be both sharp and long-lasting, this market is still Indian local tool factories are doing it.

 

At present, for the diamond tool industry that is preparing to enter this market, it is easier to enter, that is, granite combination saw bits and granite and sandstone single-blade saw bits. If it can achieve 5% of the market in the early stage %, first stabilize the foothold, and then expand rapidly based on quality assurance.

 

There are Φ350 saw blades and Φ400 saw blades. Currently, the Φ350 saw blade has the largest capacity. The customers are relatively scattered and it is not suitable for direct sales. It can only be a regional agent. However, you can ask for cash in terms of payment method, and the unit price can be given the greatest discount.

There are several big markets for Φ350 saw blades.

1. Mumbai: a distribution center for major traders.
2. New Delhi: Distribution center for major traders.
3. Bangalore: distribution center for major traders.
4. Chennai: Distribution center for major traders.
5. Ahmedabad: secondary agent distribution center.
6. Jaipur: secondary agent distribution center

 

If the main focus in the early stage is Φ350 saw blades and you want to set up points, it is recommended to set up points in the following cities: New Delhi, Mumbai or Ahmedabad and Jaipur.

 

New Delhi and Mumbai are the two largest trade distribution centers. It is easy to contact traders from all over the country. Logistics is also very convenient, allowing products to be quickly shipped to all parts of the country. The only drawback is that the product prices are very low.

 

Ahmedabad is the provincial capital of Gujarat and Modi's hometown. Its industry is developing rapidly. The China Industrial City signed between China and the Indian government is also next to Ahmedabad. Gujarat's status in India is equivalent to China's Guangdong Province, and Gujrat has signed a strategic partnership with Guangdong Province. However, Ahmedabad is still a bit far away from the stone market.

 

Jaipur is the provincial capital of Rajasthan. The Indian Stone Exhibition is held in Bangalore one year and Jaipur one year. Jaipur has convenient transportation, 180 kilometers from Jishanggarh, 350 kilometers from Jallore, 300 kilometers from Jodaipur, 200 kilometers from Kota, and 280 kilometers from New Delhi. However, it is not centralized. It is suitable for secondary agents. It is also convenient to develop regional agents in various cities. Several Chinese diamond tool companies have their offices located in Jaipur. Various diamond tools and materials can be sold here, with a market capacity of nearly US$500,000 per month. Contains diamond powder, metal powder, diamond segments, diamond saw blades, etc.

 

 

Market sales price of diamond tool products:

• Combination saw blade with 5.5mm thick base: about ￥3/pc;
• Combination saw blade with 6.5mm thick base: about ￥3.3/pc;
• 2000mm single blade saw blade(medium hard stone): RMB ￥4.5-4.8/pc;
• 2000mm single-blade saw blade(soft stone): about ￥4/pc;
• Φ350 granite saw blade: RMB 115-120/pc;
• Φ350 marble saw blade: RMB 115-120/pc;

In different cities, the price will fluctuate by about 10%.

 

 

This is just an analysis of the business opportunities for stone diamond tools. There are also ceramic diamond tools, concrete diamond tools, asphalt diamond tools, etc. The market capacity of these is also very large. Although it cannot yet keep up with the usage of stone diamond tools, the potential for growth is very high.

 

challenge:

Since the market capacity is large, its challenges are also severe.

• Challenge 1: Wanlong diamond tools and Zhongzhi diamond tools are two old companies that are deeply rooted in India. Their quality is relatively stable and their prices are relatively affordable, so they always have a good market share.
• Challenge 2: The Indian government adjusts monetary policy and tax law reform to make Indian transactions transparent and open. In this way, after formal tax payment, the original price advantage is lost.
• Challenge 3: The Indian government protects local enterprises and promotes "Made in India". Coupled with India's demographic dividend and tax incentives, local factories suddenly emerge, engage in price wars, and quickly seize a large market.
• Challenge 4: There are frequent frictions on the Sino-Indian border issue, which causes the Indian government to often engage in anti-dumping, and the private sector will also respond to boycott Chinese goods.
• Challenge 5: Salespeople from China who go to India usually suffer from various discomforts due to diet and climate. It is difficult for ordinary salespeople to stay in India for a long time.
• Challenge 6: Arrears. Whether you are doing direct sales or acting as an agent, if you want to grow bigger, you will have arrears, and this arrears will always have some bad debts. This is unavoidable for any company, but it is more or less The problem.

 

Faced with so many challenges, we can only focus on the back first and work step by step. During the operation process, avoid risks as much as possible, not only to win business, but also to win reputation, and of course to win profits, while also ensuring the safety of life and property.

 

Generally speaking, the Indian market is great! As long as we can ensure quality and service, take precautions, and avoid risks, we will soon be able to establish an unshakable flag in India.

 

This article is excerpted from Chinese Internet. It was translated by Google Translate. If it infringes on your rights, please contact this site for removal.

 

In closing, I have been in the diamond tool industry since graduating from university in 2006, and it has now been 19 years. I can say I'm an old friend and partner of the Indian market. From the initial stage when no one valued the Indian diamond tool market, to everyone rushing into the Indian market, and now to the point where many people dislike doing business in the Indian market but have no choice but to do so, I have witnessed the development and prosperity of the Indian stone and diamond tool markets.

As a practitioner in the Chinese diamond tool industry, exporting diamond tools to India has been very difficult in recent years. The difficulty is not the product itself, but rather India's policies or geopolitics. Another difficulty lies with Indian importers.

 

First, India's policies regarding diamond tool imports are very unfriendly to China. Chinese companies that have set up factories in India have suffered significant losses. Goods exported to India often disappear for inexplicable reasons. In July of this year, one of our shipments to India mysteriously disappeared, forcing us to resend the goods, resulting in significant losses for our company.

 

Secondly, many Indian inquiries come from importers who inquire about prices in China but don't place orders. These Indian business partners who inquire about prices in China are still stuck in a basic processing-and-markup business model. They believe that buying diamond tools directly from the factory is cheaper than buying them on the Indian market. They always think the prices we quote are too high. In fact, diamond tool manufacturers that can export large quantities to India, especially suppliers of entry-level products, are not making profits from producing diamond tools. They are selling diamond saw blades to the Indian market at a loss.

The business model has now upgraded. To survive and thrive in the Indian diamond tool market, you must upgrade your business model.

Finally, a quick advertisement. Huice company manufactures diamond saw blades for gang saws and single-blade saws for the Indian market. The performance is fully comparable to WanlongStone and ZhongzhiDiamondTools quality. Prices are determined by order quantity, payment is required before shipment, and no credit is extended. We can sell below cost, but only with continuous large orders.

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