Capital Goods - Non-Electrical Equipment Sector Analysis

The Capital Goods - Non-Electrical Equipment sector in India is experiencing a robust growth phase, driven by significant government impetus on infrastructure development, a booming manufacturing sector, increasing industrial automation, and a strong focus on sustainability and green technologies. This comprehensive analysis synthesizes data from twelve key players: APL Apollo Tubes, Welspun Corp, KSB Limited, Elecon Engineering, Jindal SAW, Kirloskar Pneumatic, Ador Welding, EcoRecycling, Batliboi Ltd., Energy-Mission Machineries, APEX ECOTECH, and Expo Engineering and Projects Ltd. These companies collectively represent a diverse range of sub-segments including structural steel tubes, industrial pipes, pumps, valves, gears, material handling equipment, welding solutions, e-waste recycling, sheet metal forming machines, water/wastewater treatment, and heavy fabrication. The sector is characterized by strong domestic demand, increasing export opportunities, and a strategic shift towards value-added and high-margin products.

A. Industry Overview & Market Landscape

The Capital Goods - Non-Electrical Equipment sector is a foundational pillar for industrial and infrastructural development, encompassing a wide array of machinery, components, and services essential for various end-user industries. The sector is currently in a growth phase, propelled by India's ambitious economic targets and global demand for specialized equipment.

Total Addressable Market Size and Growth Rates: The sector's total addressable market is vast and fragmented, with several sub-segments exhibiting significant growth potential:

• Structural Steel Tube Market (India): Projected to grow from 9 Mn Ton in FY24 to 17.3 Mn Ton by 2030E, indicating a substantial CAGR. Structural steel tubes are expected to increase their share of the total steel market from 6.5% (FY24) to 8.3% (2030).
• E-waste Recycling Landscape (India): Projected to reach ₹110,000 Crores (US$12 Billion) by 2030, growing at a CAGR of 17%. Globally, E-waste generation topped 62.5 Mn metric tons annually in 2024, with only 21% recycled.
• CNC Machines Market (Global): Expected to grow from USD 34.8 billion in FY23 to USD 51.5 billion by FY27F, with a CAGR of approximately 10.2%. The Indian market for CNC Press Brake Machines alone is estimated at ₹2,000 Cr, with a high import dependence of ~₹1,200 Cr. Hydraulic Shearing Machines and Plate Rolling Machines each represent a ₹1,000 Cr market, while Hydraulic Press Machines offer a new opportunity of ₹10,000 Cr.
• Water Sector (India): Expected to grow at a CAGR of 11.6%, with a potential demand of almost 2.5 Mn ton of MS Pipe in the next 3-5 years. The Jal Jeevan Mission aims to provide 19 crore households with tap water by 2028.
• Indian Chemical Industry: The 6th largest chemical producer globally and 3rd largest in Asia. Domestic demand is projected to rise from US$180 billion (2021) to US$1,000 billion (2040). The market size is expected to grow from US$178.0 billion (FY19) to US$304.0 billion (FY25), at a CAGR of 9.3%.
• Indian Pharmaceuticals Industry: Market size is projected to grow from US$42.0 billion (2021) to US$130.0 billion (2030).
• Commercial Air Conditioning Market (India): Estimated to be over ₹5,000 crores for specific segments, with the overall Indian market around ₹25,000 crores.
• Centrifugal Compressor Market (India): Approximately ₹500 crore, with Kirloskar Pneumatic being the only indigenous manufacturer.
• Green Hydrogen Market (India): Projected to reach 5 MMT by FY2030, representing ₹8 trillion worth of investment opportunities and averting 50 MMT of CO2 emissions.
• Oil & Gas Sector (Global & India): US crude oil production is expected to reach 13.5 mbpd in 2025 & 2026. Natural Gas consumption is likely to rise to an all-time high of 91.4 Bcf/d in 2025. US energy companies are expected to spend US$50 billion in new pipeline projects over the next 5 years. In India, natural gas consumption in the energy mix is targeted at 15% by 2030 (from ~7%), with ~10,459 kms of pipelines under construction. Saudi Arabia's pipeline network is projected to grow at 6.6% CAGR through 2030, adding 3,000 km of new pipelines.

Market Structure and Segmentation: The sector is highly diversified, segmented by product, application, and customer type:

• Structural Steel Tubes (APL Apollo): Products range from 8x8mm to 1000x1000mm with 0.18mm to 40mm thickness. Applications include Housing (64% of H1FY26 revenue), Commercial buildings (13%), Infrastructure (19%), and Others (4%). Value-added products (Heavy, Structural Light, Z Rust-proof, Coated, Galv Agri/Industrial) are a growing segment, comprising 57% of Q2FY26 sales mix.
• Pipe Solutions (Welspun Corp, Jindal SAW): Includes Line Pipes (India, USA, KSA), DI Pipes (India, KSA), Stainless Steel Bars & Pipes, and TMT Rebars. Key ap