India Seeing Increasing Adoption of MES

  • Posted on 18 August 2010

Growing competition in the Indian manufacturing sector has led to increased adoption of manufacturing execution systems (MES), according to new analysis from Frost & Sullivan. With IT service providers playing a bigger role in the Indian manufacturing sector, many international and domestic participants are entering the Indian MES market, which is currently worth in excess of US$ 30 million and is set to grow at a CAGR in excess of 18 percent from 2010 to 2016.

"Increasing competition among Indian manufacturers has heightened the need for a seamlessly integrated productivity enhancement tool such as MES to maintain operational excellence. With limited direct presence of global MES vendors in India, IT service providers will play a significant role in influencing MES adoption among end-user industries," notes senior research analyst Kalpesh Padhye.

The need for real-time information to improve operational efficiency and to comply with regulatory standards, such as FDA regulations, are the two main drivers that will stimulate MES growth in the Indian market. However, easy availability of low cost labor and significant integration costs with ERP and other automation systems are major restraining factors for MES implementation.

The oil and gas industry currently accounts for majority of the Indian MES market, according to the report, while MES implementation in the pharmaceutical industry and food & beverage industry is set for rapid growth. Other end-user industries such as consumer packaged goods, steel, specialty chemicals, automotive and auto ancillary are also expected to large number of MES implementations.

MES delivers information that enables the optimization of production activities from order launch to finished goods. Using current and accurate data, MES guides, initiates, responds to, and reports on plant activities as they occur. The resulting rapid response to changing conditions, coupled with a focus on reducing non value-added activities, drives effective plant operations and processes.