Bearings of various types and sizes are used
for different applications.
The major applications are as follows:
Textile machinery and
The demand for bearings cane be clubbed under
A. Original Equipment
Manufacturers (OEM) Market
The OEM market for bearing represent the
demand arising out of the original vehicle and industrial manufacturers. The
demand for the OEM market directly depends upon the
growth in user industry. OEM market accounts
for 40% of total demand of bearing industry. This market is characterized by
requirements of high quality, stringent delivery norms and lower margins.
OEM’s have been facing price competition
in their own markets, continue to exert price pressure on the local bearing
suppliers. The bearing capacity available in the country is in excess of
demand, resulting in price reduction. The OEM bearing market is likely to
witness better days ahead on account of up swing in automobile industry and
B. Replacement Market
OEM demand is mostly generated in Automobile,
Machine manufacturer , Plants manufacturers, where in the bearings is used
as part of the new equipment or machinery.
Replacement Demand is the after demand where
as a part of the maintenance of the machines or rotating machine , the
bearings are replaced by new bearings after it is failed as natural life
deterioration / wear or tear or due to premature failures and need
replacement The replacement market represents the demand arising on account
of replacing the used and worn-out bearings. The size of replacement market
is dependent on equipment population
and frequency of maintenance. Replacement market accounts for 40% of total
demand for bearing industry. The margins in this market are relatively
higher placed as compared to OEM market.
The replacement market is highly price
sensitive and has higher share of unorganized players and cheaper imported
bearings. Exhibit4 represent the bearing demand per sector.
Figure : Bearing Demand Per Sector.
In the last two years, Indian automobile and
industrial sectors are facing a increased market and economy growth.
This has led to higher growth in OEM segment
and higher growth in replacement demand. The organized players have been
concentrating on improving share in the replacement market, which earlier
was dominated mostly by the small scale and cottage industries.