The document provides an overview of the foundry market in India in 2012. It notes that India was the world's second largest producer of castings in 2010 and one of the top 10 in terms of average production per plant. The foundry industry employs millions of people directly and indirectly. While production dipped in 2008 due to the global crisis, it has since recovered with strong growth. The market is expected to continue growing due to increasing demand from sectors like automobiles and supportive government initiatives. However, challenges include market constraints, rising input costs, and low capacity utilization.

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Foundry Market –
Foundry Market India
January 2012

2. Executive Summary
 Foundry market in India registered production of a mn tonnes of castings in 20‐‐
 In 200‐, India was the world’s second largest producer of castings and also one of the top 10 in terms of
average production per plant
Market  It was also the fastest growing top‐10 nation in 200‐, increasing its casting tonnage by b% over 200‐
 India currently has over c foundries in the small, medium and large scale sectors with around d units having
international quality accreditation
 Foundry industry is a major feeder to various sectors, automobile sector accounting for the largest share
Drivers Challenges
– Increasing demand from automobile sector – Market constraints
Drivers & – Strong economic growth – Rising input costs
Challenges – Supportive government participation – Low capacity utilisation
– Low cost of labour
– Improving technology and modernization
p g gy
 Vision Plan 2020 for Foundry Industry – Initiated by The Institute of Indian Foundrymen (IIF) to recommend
initiatives for strong growth and help India emerge as a leading supplier of quality castings to the global
Future Outlook market by 2020
 Vision Plan 2020 Interventions– In order to realise the Vision Plan 2020 various interventions are required
Vision Plan 2020 Interventions In order to realise the Vision Plan 2020, various interventions are required
which aims to benefit the entire value chain and ensure balanced growth of the foundry sector
Major Players
Co pet t o
Competition Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
FOUNDRY MARKET IN INDIA 2012.PPT 2

3. •Introduction
•Market Overview
M k O i
•Foundry Clusters
•Export‐Import
•Drivers & Challenges
Dri ers & Challenges
•Competition
•Future Outlook
•Strategic Recommendations
•Strategic Recommendations
FOUNDRY MARKET IN INDIA 2012.PPT 3

4. Foundry market is growing consistently in India and it is the
second largest producer of castings in the world
Indian Foundry Market – Overview Production of Castings – Growth
• In 200‐, India was the world’s second largest
producer of castings and also one of the top 10 in mn MT
terms of average production per plant
D%
• It was also the fastest growing top‐10 nation in 200‐,
increasing its casting tonnage by a% over 200‐
• Indian foundry industry employs around b mn
Indian foundry industry employs around b mn
persons directly and another c mn indirectly 0
• Production of castings in India took a dip in 200‐ due 2006‐10 2011‐2015e
to the global crisis, but has recovered with strong
Production of Castings – Segmentation
growth in 20‐‐
growth in 20
• Growing concern regarding the quality and quantity Segment 1 Segment 2
of castings will drive the establishment of larger Segment 3 Segment 4 i%j%
casting facilities in India over the next few years Segment 5 G%h% K%
• With growing demand from the automobile and F%
engineering sectors coupled with India’s rapidly
growing economy, the foundry market is expected to x occupy the biggest share
E%
of total castings produced
grow strongly in the near future
Source:
FOUNDRY MARKET IN INDIA 2012.PPT 4

5. Major Foundry Clusters in India (x/y)
Foundry Cluster: Rajkot
Gujarat Foundry Overview Share of Casting Application
• There are about f foundry units at Rajkot which
There are about f foundry units at Rajkot which
mainly cater to the local diesel engine industry
• Geographical spread of the cluster includes Aji Segment 1 e%
Vasahat, Gondal Road and Bhavanagar Road areas
Segment 2 a%
• Majority of the foundry units at Rajkot produces grey
Majority of the foundry units at Rajkot produces grey Segment 3
Segment 3
Rajkot d%
iron castings for the domestic market and ~g% of
Segment 4 c%
them exports castings such as electric motor castings
Segment 5 b%
• Around h% of the units use conventional cupola as
the predominant melting furnace while a local design
called 'Rajkot cupola‘ is also popular
Source:
FOUNDRY MARKET IN INDIA 2012.PPT 5

6. Drivers & Challenges – Summary
Drivers Challenges
Increasing demand from automobile
Increasing demand from automobile
sector Market constraints
Strong economic growth Rising input costs
Supportive government participation Low capacity utilisation
Low cost of labour
Improving technology and
modernization
FOUNDRY MARKET IN INDIA 2012.PPT 6

7. Public: Domestic Company – Company (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Head Office
Products and Services
Products and Services
Category Products/Services
Key People
Category 1 Product 1, Product 2, Product 3
Name
N Designation
D i ti
Category 2 Product 1, Product 2, Product 3 A
B
Category 3 Product 1, Product 2, Product 3
C
Category 4 Product 1, Product 2, Product 3 D
Source: Note: The list of products and services is not exhaustive
FOUNDRY MARKET IN INDIA 2012.PPT 7

8. Public: Domestic Company – Company (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
Total Income Net Profit/Loss y‐o‐y change
Particulars 2011 2010 2009 2008
(2011‐10)
INR mn INR mn
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
0 0
Return on Working Capital
2008 2009 2010 2011
Return on Assets
Financial Summary Return on Fixed Assets
Cost Ratios
• The company incurred a net profit/net loss of INR X mn in FY 20XX, Operating costs (% of Sales)
as compared to net profit/net loss of INR Y mn in FY 20YY Administration costs (% of
• The company reported total Income of INR XX mn in FY 20XX, Sales)
registering an increase/decrease of X per cent over FY 20YY
registering an increase/decrease of X per cent over FY 20YY Interest costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios
• The company earned an operating margin of X.X per cent in FY 20XX
Current Ratio
an increase/decrease of X.X percentage points over FY 20YY
Cash Ratio
• The company reported debt to equity ratio of X.XX in FY 20XX, an Leverage Ratios
increase/decrease of X.X per cent over FY 20YY Debt to Equity Ratio
Debt to Capital Ratio
b i l i
Key Financial Performance Indicators
Interest Coverage Ratio
Indicators Value (dd/mm/yyyy) Efficiency Ratios
Market Capitalization (INR mn) Fixed Asset Turnover
Total Enterprise Value (INR mn) Asset Turnover
Current Asset Turnover
EPS (INR)
EPS (INR)
Working Capital Turnover
PE Ratio (Absolute) Capital Employed Turnover
Source: Improved Decline
FOUNDRY MARKET IN INDIA 2012.PPT 8

9. Public: Domestic Company – Company (3/3)
Key Business Segments Key Geographic Segments
Segment 1 Segment 2 Country1 Country 2 Country 3
0% 0%
2008 2009 2010 2011 2008 2009 2010 2011
Key Recent Developments
Description News
• Company is a vertically integrated foundry, performing various machining, surface treatment, and heat
Overview treating operations in house
• It specializes in the manufacture of ductile iron and gray iron casting in the weight range of a grams to a
maximum of b kgs
i fbk
Product Line
• It produces ductile and gray iron castings weighing less than a pound to over c tons and is an ISO
9001:2000 and ISO/TS 16949 certified company
Expansion Plans • It has acquired a new grinding/fettling center from country
Source:
FOUNDRY MARKET IN INDIA 2012.PPT 9

10. Thank you for the attention
The Foundry Market ‐ India report is part of Research on India’s Manufacturing Series.
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