Guest author: Ajay Khashu | Business Development Manager & Advisor | Hazet
In recent years, as economic globalization accelerates, the hand tool industry became the main source in hardware tool manufacturers throughout the world. The wide application and larger demands in hand tools are beyond imagination and as a result of this, there is an increase of more than 10% every year.
Hand tools are products with good profits and competition of hand tool products is mainly decided by the quality of raw material which in this case is steel quality, used for manufacturing and steel products are faced with the problems of surface quality and internal cracks which are problems of steel technology that cannot be ignored.
Hand tools in the world market can be distinctly divided into two types:
(a) Developed markets
(b) Developing areas
The point of distinction is that the former are produced not by order, are subscribing to advanced methods of production. The latter are different in these parameters, and so enjoy a little monopoly in the international market.
The Indian hand tool market is estimated to cross 200million US$ which is growing at a rate of 12% annually. India’s advantage is low labor, low cost, and availability of raw materials. There are more than 2500 manufacturers in India only and out of which 95% are in small scale sectors catering to the demand for local markets and export.
Hand tools comprise of general-purpose tools (spanners, wrenches, pipe cutters, woodworking tools, pliers) watchmaking tools, goldsmith tools, automotive tools, agriculture tools, industrial tools, garden tools, nonsparking tools and so on.
As the demand is increasing and customers getting more quality conscious, the technological improvement for manufacturing in India requires sophisticated tools and equipment. Industries like defense, railways, agriculture, automobiles, and aerospace are expecting good quality products for ease of operation due to which small manufacturers have upgraded themselves and are now competing with established organized players but the market is still open for high-quality application hand tools.
Good quality hand tools manufacturers are now entering the Indian market because of the growing demand for brands, better quality, zero error, global reputation and recommendations from other industrial sectors from different countries.
In order to enter the Indian market, any organization should have thorough knowledge about market trends and applications in different sectors and for tapping these sectors, one needs to have the right distributor network in place, right people to understand the product with particular applications. Some organizations have started e- selling but the proportion of sales is still small.