Manufacturing is the lifeline of a country’s economic expansion. Some of the sectors that dominate the manufacturing segment are automotive, engineering, chemicals, pharmaceuticals, and consumer durables.
Originally, the machine tool industry was one of the first manufacturing units in India. As of today, India's manufacturing sector is adopting tech automation and process-oriented approaches which will boost efficiency and productivity.
The manufacturing segment accounts for 17% of the national GDP and employs over 27.3 million individuals.
India plans to allocate incentives worth Rs 18,000 crore to boost local manufacturing in six new sectors like chemicals, shipping containers, and vaccine inputs.
With these advancements, let us look at the top 5 companies in the manufacturing segment and what their future outlook is like:
JSW Steel has operations in more than 100 nations. It is India’s largest steel exporter and ships across five continents. It has a production capacity of 22 MTPA and plans to expand to 40 MTPA by the next decade.
The company has acquired a 66.67% stake in the Australian coking coal miner for USD 170 million. JSW group has also made an investment of Rs 65,000 crore in Odisha. This project encompasses steel production, a power facility, a cement unit, and jetties that will generate 30,000 jobs.
They have also committed a Rs 40,000 crore investment in electric vehicle and battery manufacturing which will create more jobs in the Indian economy.
They have also been maintaining a dividend payout of 25.1%.
It is India’s largest producer of grey cement, ready-mix concrete, and white cement. It is known for strength, reliability, and innovation and has established itself as a big name in the cement segment.
UltraTech is the largest cement exporter from India. It caters to markets around the Indian Ocean as well as the Middle East. UltraTech Cement is strategically enhancing its operations in Maharashtra and has invested over Rs 800 crore.
UltraTech was awarded environmental product declaration certificates in October 2022 for various cement categories like OPC, PPC, PSC, and PCC.
In 2024, UltraTech Cement further strengthened its market position by acquiring up to a 23% stake in India Cements to have a solid hold in southern India as well.
Jindal Saw Ltd is a manufacturer of pipes and pellets like LSAW pipes, HSAW pipes, DI pipes, seamless pipes, and pellets.
It stands out as the leading producer of large-diameter SAW Pipes. These SAW Pipes are used for the transportation of oil, gas, slurry, and water. It is projected that the demand for SAW pipes will rise by 3% CAGR by 2033.
DI Pipes & Fittings has a total manufacturing capacity exceeding 1 million MT. Jindal Saw also manufactures a comprehensive range of carbon, alloy, stainless steel seamless and welded pipes & tubes, with a combined capacity of over 425,000 MTPA.
These pipes and tubes are used across various industries like petroleum, exploration, sugar, steel, bearing, automotive, general engineering, power, and process industries.
They also operate a 1.2 MTPA pellet plant. This facility enhances Jindal Saw's capabilities in serving the mineral and metallurgical industries.
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It is the leading automobile manufacturer in India and holds a 42.75% share of the passenger vehicle market as of FY22. The company reached a landmark in FY24, recording its highest-ever total sales of USD 16.2 billion.
Maruti Suzuki has exported its domestically produced Fronx, a compact SUV to Japan in a batch of 1,600 vehicles. This SUV is manufactured at the company facility in Gujarat and is all set to launch in Autumn in Japan.
Maruti Suzuki announced an investment of Rs 35,000 crore to enhance their Gujarat factory to reach an annual production target of 1 million cars by FY29.
This move is part of Suzuki Motor Corp's broader strategy to boost EV production as it targets a 15% share of its sales in India by 2030. They have reduced debt and are almost debt-free. They have also been maintaining a dividend payout of 36.7%
It is the world's largest aluminium rolling company and the largest primary aluminium producer in Asia.
Hindalco has a cutting-edge copper facility with a top-tier copper smelter and fertiliser plant. This smelter is the world's largest custom smelter situated at a single location.
Hindalco operates as an integrated producer with operations extending in 11 countries outside of India. Hindalco Industries plans an investment of Rs 800 crore to construct a new facility near Sambalpur, Odisha.
This expansion is focused on increasing its aluminium foil production capacity, specifically for use in EV batteries and energy storage systems, with an output target of 25,000 tonnes of high-quality aluminium foil suitable for Lithium-ion and Sodium-ion cells.
Hindalco Industries Ltd. has partnered with Texmaco Rail & Engineering Ltd. to develop rail wagons and coaches for railways in India.
Conclusion
Investing in top manufacturing stocks in India is a growth opportunity that you certainly don’t want to miss out on. However, conduct thorough research, assess the company’s advantages and disadvantages, and take into account elements like industry trends before investing in any company.
​​​​​​​By meticulously evaluating these aspects, you can make a well rounded decision and leverage the growth opportunities presented by the manufacturing sector.
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