Industry 4.0 and smart technologies have significantly transformed the machine tools industry. According to Ajit Nair, Managing Director, Pro Arc,“Data has become crucial for decision-making, with predictive maintenance being a major benefit.” He highlights that real-time sensors in machines enable planned maintenance, reducing unplanned downtime, improving uptime, and enhancing throughput.
Skanda N Magal, Product Manager, Deratech Machines India Pvt Ltd, says,“Advancements in smart technologies and Industry 4.0 enhance reliability and scalability in the machine tools industry by simplifying data acquisition and monitoring. This enables predictive maintenance, boosts efficiency, and optimises performance, ultimately improving production and the bottom-line.”
Amolak Preet Singh, Managing Director, Haimer Asia Pacific, says, “The concept of Industry 4.0 focuses on building processes and systems that enhance reliability and scalability. Over the last couple of decades, we have transitioned from mass production lines to flexible CNC machines, enabling adaptability and scalability based on market needs.” He believes this presents a significant opportunity to move up the value chain by enhancing processes and reliability.
Singh adds that improved connectivity between machine brands, once a challenge, now facilitates data acquisition and easier data mining. Haimer’s new tool management systems offer complete visibility and seamless links with ERP and MES systems for long-term profitability.
On his part, Rajiv Malhotra, COO, Motherson Techno Tools, says, “Smart technologies support faster processing of inputs to provide specialised solutions. Industry 4.0 improves reliability in metal cutting tools. It facilitates scaling through modular designs, automation, and cloud control. These advances boost tool life, reduce downtime, save energy, and ensure efficient, precise, and flexible machining.
Flexibility in manufacturing
In the past, small-batch and high-mix production was costly due to the need for expensive tools. Now, technologies like laser cutting and robotics replace these, reducing costs and allowing easy design changes.
“Flexibility makes low-volume production viable and accelerates product development, enabling manufacturers to produce new models more frequently, benefiting both manufacturers and end-users,” says Nair.
Magal agrees, “Flexibility enables efficient adaptation to customised and small-batch manufacturing needs, ensuring quicker ROI on capital investments while meeting demands effectively.”
For Malhotra, flexibility is key in the machine tools ecosystem. The industry is offering more specialised and dedicated solutions. He adds, “It enables productivity, quick changes in setups, supports machines that handle multiple tasks, and reduces tooling costs.”
Additionally, the industry setup has evolved significantly over the last two decades. In Singh’s words, “We have moved from mass production lines tailored for specific components to more flexible systems enabled by CNC machines. This flexibility allows seamless switching between components for batch or mass production.” Haimer provides flexible manufacturing tools that are versatile, not limited to a single component, and adaptable across various manufacturing needs.
Collaborations driving innovation
Ecosystems drive results, and collaboration between OEMs, ancillary suppliers, and allied industries is crucial to accelerate technology adoption and innovation.
Singh says, “Even the best machine tool will not deliver optimal results without the right holding system, cutting tools, filtration, measurement, and data collection systems.” He adds that collaboration is especially vital with the availability of bi-directional software that integrates multiple brands into a single ecosystem. It provides customers the flexibility to use different machine brands while ensuring seamless data availability and system efficiency.
Malhotraadds,“Collaborations enable knowledge sharing, faster development of advanced solutions, and integration of new technologies. Such partnerships ensure better resource utilisation, improve product quality, and create tailored solutions, helping the industry stay competitive and future-ready.” Motherson is closely working with the OEM, and its ancillaries and has made over Rs 835 crore savings in the last two years to the customers in terms of direct cost and productivity.
Agreeing that such collaborations are vital, Magal says, “Land acquisition and factory operations pose significant challenges, making OEMs rely heavily on vendors and ancillary suppliers for manufacturing. This allows OEMs to focus on sales, marketing, and distribution. Efficient third-party vendors offering top-quality products have immense opportunities in this ecosystem, playing a key role in enhancing productivity and fostering innovation across the value chain.”
Referring to a post-COVID scenario, Nair says, “The focus on AI and other advancements grew due to more open collaboration, with less proprietary technology and faster adoption.” He adds that this global approach, where development happens across regions, ensures that products meet diverse market needs. As a result, these collaborations are driving faster technological advancements and improving cost efficiencies across the industry.
Sustainable strategies
Most machine tool builders today offer systems that reduce carbon footprints by 20-30 per cent through features like automatic shut-off for hydraulic systems, coolant systems, screens, spindles, and motors.
Singh adds, “New products are designed to consume less power. Coolant management, a significant environmental challenge, has also improved, with advanced filtration systems extending coolant life and reducing disposal by 50–70 per cent.” Haimer contributes with its Industry 4.0 machines, which consume significantly less electricity.
On his part, Nair cites, “Fume extraction systems are now commonly used in cutting processes to maintain cleaner environments. Additionally, with advanced tracking systems, energy consumption is monitored and optimised. Fiber laser cutting machines have replaced CO2 lasers due to their higher efficiency, reducing energy use.” He mentions that the industry is moving towards lighter, modular machine designs, which use less raw material, thereby reducing carbon footprint.
The industry is addressing sustainability challenges with strategies like adopting renewable energy, using energy-efficient machines, and optimising material use, says Malhotra, adding, “Eco-friendly processes, recycling, and waste reduction are prioritised. Companies focus on green supply chains, biodegradable lubricants, and precision machining to lower emissions and promote sustainable manufacturing practices.” Motherson Techno Tools is currently utilising 60 per cent of its energy from renewable sources.
Magal highlights the strategies through which the machine tools industry is addressing sustainability challenges. “Modern machines are designed to be highly energy-efficient, significantly reducing power consumption. Harmful chemicals in lubricants have been minimised, ensuring safer and greener operations.” He adds the adoption of servo motor and VFD technologies as primary movers has cut power consumption by at least 30 per cent.
Impact of global trends
Global economic trends and supply chain disruptions are raising costs and causing delays in India’s machine tools industry.
“Raw material shortages, trade restrictions, and transport issues impact production timelines, along with dumping by low-tech players,” says Malhotra. Motherson addresses these by prioritising local sourcing, optimising supply chains, and using digital tools to boost efficiency, cut costs, and remain competitive.
Magal highlights India’s lag due to outdated land reforms, taxation, and labour laws. “A cost-focused approach hinders attracting top talent, vital for shifting from cost arbitrage to a technology-driven society.” He urges investment in talent development and competitive pay to retain skilled professionals contributing to advanced industries abroad.
Nair notes that geopolitical conflicts, the pandemic, and supply shortages have caused raw material shortages and higher transport costs but also spurred innovation. Businesses are adapting with alternative materials and containerised machine designs. India’s “Make in India” policy and free trade agreements create opportunities, positioning it as a manufacturing alternative to China, while global trade policies and tariffs shape competitiveness.
Singh agrees global geopolitical disruptions have impacted supply chains and Indian manufacturing but views this as a chance for the machine tools industry to strengthen its ecosystem and tackle reliability and scalability challenges.
India’s manufacturing sector is poised to leverage its capabilities to redefine its global role. With innovation, collaboration, and strategic foresight, the Indian industry is not just preparing for the future – it is shaping it.