h sundara murthy status of indian foundry industry

1. The Institute of Indian Foundrymen..
Status of Indian Foundry Industry
By
President
The Institute Of Indian Foundrymen

2. The Institute of Indian Foundrymen..
GDP Forecast – UN Report
2011 2012 2013
India 7.6 7.7 7.9
China 9.3 8.7 8.5
EU 1.6 0.7 1.7
USA 1.7 1.5 2
World 2.8 2.6 3.2

3. The Institute of Indian Foundrymen..
Location of Major Clusters
There are approx 4600 units
in the country located in
the areas marked in the map
engaged in various types of
metal castings

4. The Institute of Indian Foundrymen..
Indian Foundry Industry At a Glance
 Approx Units : 4600
 Production: 9 Million MT PA
 Employment: 500,000 Directly
150,0000 indirect
 Major Clusters: 19
 Productivity Per unit : 1950 MT/PA
 Avg Productivity/Man/PA: 20
 Max Productivity /Man/PA: 90

5. The Institute of Indian Foundrymen..
Castings Production Trends in Million MT-India
Casting Production Trends in Million MT-India
10
9.0532
9
7.7711
8 7.1793
7.4432
6.8405
7
6.055
6
5 4.623
4.038
4 3.215 3.12 3.155
3.509
2.767 2.895
3
2
1
0
Grey C.I. SG Iron Malleable Steel non ferrous TOTAL

6. The Institute of Indian Foundrymen..
Growth in Production of Castings in
2010-11 vs 2009-10
Type % Growth
 Grey Iron 23
 Ductile Iron 26
 Steel 21.6
 Non Ferrous 13.5
 Overall 23.8

7. The Institute of Indian Foundrymen..
Exports
 Total engg exports during 2011 was USD 59.78
Billions ie an increase of 83.65% over previous year
Castings export was approx Rs 6500 Cr in 2010-11
Vs Rs 4200 in 2009-2010
 The trend may not be sustainable next year as most
Asian economies have increased interest rates to
curb inflation & Coupled with rising commodity prices
& crude will dampen demand
 However, most respondents expressed stagnant
export market

8. The Institute of Indian Foundrymen..
Export Trends :

9. The Institute of Indian Foundrymen..
Sectorwise Consumption of Castings

10. The Institute of Indian Foundrymen..
Product Mix
‘

11. The Institute of Indian Foundrymen..
Share of Major Casting Producing Countries
Brazil, 3.24 Germany, 4.79 India, 9.05
Italy, 1.97
Others, 11.63
France, 1.96
World, 91.67
China, 39.6
USA, 8.24
Korea, 2.23 Japan, 4.76

12. The Institute of Indian Foundrymen..
Top 1-6 Casting Producers
Top Six Casting producers of Castings
‘
45
40
35
China
Figs in Million MT
30
India
25
USA
20
Germany
15
Japan
10
Russia
5
0

13. The Institute of Indian Foundrymen..
Growth of Metal castings by –Major
Countries by Production
While World production in 2010 grew by 14% as
compared to previous years, Brazil emerged as fastest
growing country as per census by Modern Castings
 Brazil 40.87%
 Germany 22.82%
 India 22.3%
 Italy 17.96%
 China 12.18%
 USA 11.35%
 Japan 8.18%

14. The Institute of Indian Foundrymen..
Top 15 Produce >13%
Name of Unit Production of Castings T/Year
Year : 2010-11
ELECTROSTEEL CASTINGS LTD 275284
LANCO INDUSTRIES LTD. 123422
RAIL WHEEL FACTORY 106525
HINDUJA FOUNDRIES 88545
NELCAST LTD. 83469
TATA MOTORS JAMSHEDPUR + Pune 81274
BRAKES INDIA LTD. 75886
DCM ENGINEERING PRODUCTS 62327
SAKTHI AUTO COMPONENT LTD. 50000
COOPER FOUNDRY, SATARA 49200
MAHINDRA- HINODAY + Mahindra Auto 48719
JAYASWALS NECO LTD. +NECO CASTINGS 48085
ASHOK IRON WORKS 45112
KIRLOSKAR FERROUS INDUSTRIES LTD. 41905
WELCAST STEELS LTD. 38241

15. The Institute of Indian Foundrymen..
Various Types of Castings Produced
in India

16. The Institute of Indian Foundrymen..
Various Types of Castings Produced
in India

17. The Institute of Indian Foundrymen..
Foundry Industry -Foundries
 50% respondants reported + 5-10% % growth in
production in Q2 Vs Q1 2011-12 .While other 50%
reported growth of + 10-15% in same period
 Exporters reported growth of + 5-10% in Q2 Vs Q1 2011-
12
 Most reported order books + 5-10% in Q2
 Power availability improved in 2011-12 Vs 2010-11 though
still unsatisfactory .The gap between demand & supply
reduced in TN,AP,Punjab Rajasthan & Haryana
 Power generation grew by 9.3% in Apr-Sep 2011-12 Vs
4.1% in 2010-11

18. The Institute of Indian Foundrymen..
Equipment Manufacturers
• Most respondants reported growth of +10-15% in Q2
11-12 Vs Q1
• Order books were Up by 5-10% reported by 50%
respondants & up by 10-15% by balance in Q2 Vs Q1
• Reported raw material & power availability as
satisfactory
• 75% Respondants reported export markets still
growing while balance reported as stagnant

19. The Institute of Indian Foundrymen..
Foundry Material Manufacturers
 Most respondants have reported - ve growth of 5-
10% in Q2 Vs Q1 while a few reported + ve growth
during above period of 10-15%.
 Domestic markets for most is still growing @ 5-10%
& satisfactory while exports are going down.

20. The Institute of Indian Foundrymen..
Auto Industry
Sales of passenger vehicles has been very weak &
registered modest growth in Nov after falling for last 4
months & the annual growth in sales of cars likely to be 2-
4% this fiscal
Sales Growth in Nov 2011 Vs Nov 2010
 Cars +7%
 Motorcycles +23%
 Scooters +38%
 Commercial Vehicles +35%
 Three Wheelers +6%
 Total + 22%

21. The Institute of Indian Foundrymen..
Auto Industry
 Single Largest Conumer .Consumes approx 32% of
total production
 Growth in 2011-12 to be weaker Vs 2010-11
 SIAM Forecast 11-12% in 2011-12 Vs 26% in 2010-11
 Cars will register lowest growth of 2-4% ;LCVs are
likely to grow 20-23%;CV & two wheelers @ 13-15%
 The slow down is attributed to higher interest rates
,commodity & crude oil prices

22. The Institute of Indian Foundrymen..
Tractors
 Growth in 2011-12 is likely to be lower in 2011-12
 Expected growth this FY is 10%

23. The Institute of Indian Foundrymen..
Machine Tools
 Registered growth of 12.24% by volume in Apr-Dec
2011 Vs Apr-Dec 2010
 Registered Growth of 18.4% by value during
corresponding period as above

24. The Institute of Indian Foundrymen..
Power & Infrastructure
 Govt of India plans a target of USD one trillion of
investment during 12th plan ( 2012-17)
 Power sector’s share n above likely to be USD 300
Billions for addition in capacity of 100,000 MW during
the plan period
 This will pull demand from sectors such as
Earthmoving, Power Generation, Electrical Machinery
& Transport

25. The Institute of Indian Foundrymen..
Vision For Indian Foundry Industry
‘
Production In Million MT/PA
30
25
20
15
10
5
0
2010 2015 2020

26. The Institute of Indian Foundrymen..
Vision For Indian Foundry Industry
‘
Avg productivity /unit in MT PA
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2010 2015 2020

27. The Institute of Indian Foundrymen..
Vision For Indian Foundry Industry
‘
Avg Productivity/Man in MT PA
60
50
40
30
20
10
0
2010 2015 2020

28. The Institute of Indian Foundrymen..
Vision For Indian Foundry Industry
Savings in Sp Energy Consumption in %
10%
5%
Base Line
2010 2015 2020

29. The Institute of Indian Foundrymen..
Govt. Initiatives
 Current share of Manufacturing in GDP has been 15-
16% since 2005-06
 Govt plans to increase share of manufacturing in GDP
to 25% in next 10 years
 As per Planning commission India needs 250 million
new jobs in next 15 years & therefore focus on
manufacturing
 NMIZs being planned spread over 2000 Hectares( 8 Sq
Km)
 NMIZs will be combination of production units, public
utilities, logistics, environmental protection
mechanisms & residential area

30. The Institute of Indian Foundrymen..
Govt. Initiatives Contd…..
 Two Automotive Manufacturing hubs planned one
each in Central & Eastern India spread over 10,000
Acres each in addition to 3 existing at
Haryana, Maharashtra & Tamil Nadu
 Setting up Sector Skill Councils for sector specific skill
upgradation
 Introduction of Vocational programmes at CBSE level

31. The Institute of Indian Foundrymen..
New/Recent Plans for Investments in
Rs Crores
 Maruti Suzuki: 18000 ( in 3 phases in
Gujrat incl their vendors)
 Ashok Leyland: 1000
 Nissan Jt Venturewith AL: 2300
 Asia Motor Works: 500
 Hyundai: 400
 Daimler Trucks: 4400
 Eicher Volvo: 500
 Force Motors: 800
 Mahindra: 1350
 Tata Motors: 12000
 Volvo Buses: 500

32. The Institute of Indian Foundrymen..
Upcoming/New Projects-Auto Industry
 Fiat at Ranjangaon with investment of INR 4000 Cr
 GM India Expansion plans investment of INR 1000 Cr
 Volkswagen plans new investment of INR 3800 Cr
 Mercedes Benz investments INR 250 Cr
 Bajaj Auto for two wheelers & cars INR 1500 Cr

33. The Institute of Indian Foundrymen..
New/Recent Foundry Projects /
Expansions
 DCM Engg  Steel Cast
 Sharp Chucks  Indian Smelting
 RPS Vikas  Kastrel
 Bhagwati Foundries  PSG Coimbatore
 Flowmetalic  Bagree Alloys
 Nelcast  Tata Motors
 Brakes India  Hinduja
 L&T  Amtek
 Ace Designers  DGP Hinoday(M&M)
 Srinivas engg

34. The Institute of Indian Foundrymen..
New Foundries
 Green Tech Industries of Taiwan new foundry near
Chennai ( Meita Group) 100% EOU supplying
turbochargers 1100 MT/Annuam

35. The Institute of Indian Foundrymen..
Major Constraints
 Availability of skilled manpower
 Reliable power supply
 Raw Materials shortage forecast by some
 High cost of capital
 High cost of Energy

36. The Institute of Indian Foundrymen..
Recent IIF Initiatives
 Proposal submitted for setting up of Sector Skill
Council-Foundry which is being pursued
 Initiated Committee on Environment to Focus on this
vital aspect
 Initiated various programmes on Energy conservation
 MoU with JFS under consideration for synergy
between industry bodies to promote exchange of
information & support each other for benefit of
members
 Promote cause of Industry with various stakeholders

37. The Institute of Indian Foundrymen..
Thank You