The opportunity for Indian manufacturers are humongous if there is a sizable shift in opportunities from China to India. A look at the India-USA trade gives some clue. A good portion of India’s current exports to the USA consist of apparel, pharma, chemicals, vehicles and furniture. However, except for a few sectors such as pharma, fish/sea creatures and carpets, exports from China are several times more than that of India.
MNCs with the technological advantage and strong parentage in global markets, such as Cummins, ABB and Siemens with reasonable export exposure to benefit.
Auto component makers
Many companies associated with making components are expected to gain. In the Electricals segment, Nippon Electricals is a key player. In suspension & braking part, Jamna Auto, Gabriel India, Munjal Showa are the companies which are expected to benefit and in the cooling systems category, Subros is expected to hog the limelight.
UPL, PI Industries, Bharat Rasayan, Excel Industries, Insecticides India are the names that are positioned to benefit from the shift and would be worth watching out for. PI Industries indicated that it has witnessed big order wins and a significant surge in enquiries and is ready for high growth in the CSM (Custom Synthesis Manufacturing) segment. UPL, another major player in this space, sees this as an opportunity to seize market share and the management believes that there is opportunity for UPL to emerge as an alternative supply source;