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THE ECONOMIC WEEKLY January 16, 1960

Scope for Small Industries


Foundries and Rubber Products
By Industrial Economist
IN the article w h i c h appeared in are o n l y half a dozen w h i c h are able at the laboratory put up by the
the last week's issue oppor- m a k i n g h i g h grade castings and even S m a l l Industries Service Institute
tunities of profitable investment for they do not possess equipment re- at W o r l i .
some of the engineering industries q u i r e d for physical a n d chemical
A f o u n d r y w i t h o u t a machine shop
were discussed. The present article testing. Castings obtained by them
w o u l d be an incomplete unit, f o r a l l
deals w i t h s i m i l a r opportunities in are. therefore, not quite satis-
castings need finishing. It w i l l have
Foundries and Rubber Products. factory. H i g h grade castings are
to w o r k as a j o b b i n g unit, that is.
required f o r machine tools and com-
CAST I R O N FOUNDRIES d o i n g castings f o r other engineering
ponent parts, diesel engines and com-
units. To reap f u l l profits of a
There is scope f o r profitable i n - ponent parts, locomotive cylinders,
model f o u n d r y , it is necessary to
vestment in a l l types of foundries. high duty cast i r o n parts f o r r a i l -
have a machine shop attached to i t .
Engineering industries are dependent ways, such as. chains and horn
The investment in machine shop
on foundries f o r castings. Some cheeks and pressure tested soil pipes
w o u l d again' depend on the types
units have their o w n foundries and The demand f o r h i g h grade castings
of castings that the foundry w i l l
others get castings done on j o b w o r k for diesel engines and machine
undertake. The better the castings
basis f r o m f o u n d r y units. There is tools is very good, and is l i k e l y to
and this means a good deal of
a large number of cast i r o n foun- increase at an annual rate of 15 per
m a c h i n i n g and finishing the more
dries in the country p a r t i c u l a r l y in rent and 25 per cent, respectively.
is the m a r g i n of profit. A good
Bombay, Calcutta, A g r a and L u d h i - Pressure tested soil pipes are a fast
machine shop consisting of one
ana. Madhya Pradesh, however, selling product. There is not a
Universal M i l l i n g Machine, 1 Coo-
does not have many cast i r o n foun- single f o u n d r y m a k i n g this item in
pers' shaper, 4 centre lathes, 2
dries and offers good scope f o r them Bombay.
d r i l l i n g machines, I double ended
i n its towns l i k e D u r g , R a i p u r , grinder and 1 power hacksaw,
Jabalpur and Indore. The first two To install a model cast iron foun-
dry f o r the p r o d u c t i o n of h i g h prade w o u l d cost nearly Rs 80,000. T h i s
towns are very near B h i l a i and are, entire equipment can again be had
therefore, ideally situated f o r the castings, an investment of nearly Rs
2 lakhs w o u l d be required sand on hire purchase, for about Rs
purpose. There is large demand 15.000.
f o r builders' hardware items in these testing and physical testing equip-
towns o w i n g to tremendous b u i l d i n g ment alone w o u l d cost nearly Rs NON-FERROUS FOUNDRY
activity going around these towns 50,000. Other equipment and tools Non-ferrous foundry offers a.
and in B h i l a i . Foundries in these i n c l u d i n g cupola of 2.5 to 3 tons
better scope for profitable invest-
towns w i t h modern machine shops capacity would cost nearly Rs
ment than cast i r o n f o u n d r y . The
attached to them w i l l also get good 40,000. L a n d and b u i l d i n g , i f own-
huge demand for it is increasing at
orders f r o m B h i l a i factory f o r dif- ed, w o u l d cost nearly Rs 30 to
a fast rate. The i m p o r t a n t items of
ferent types of small items needed 40,000. A b o u t Rs 80,000 w o u l d be
non-ferrous castings w h i c h are in
needed by way of w o r k i n g capital.
by the plant. great demand are sanitary fittings,
Jabalpur and Indore offer good I F SHORT O F CAPITAL taps, cocks and valves, hearings for
scope f o r items of m u n i c i p a l re- oil engines and railways, and
Entrepreneurs not having funds
quirements and builders' hardware bushings and axle boxes f o r r a i l -
for the entire project can effect some
items, as the towns are g r o w i n g fast. saving by t a k i n g land on lease or ways. Water taps and cocks are the
They are also c o m i n g up very w e l l both land and covered area on rent. most i m p o r t a n t of the items men-
i n d u s t r i a l l y . I n d o r e , h a v i n g a good This w o u l d mean a reduction of tioned above. Present indigenous
number of textile mills, also offers nearly Rs 30,000 in i n i t i a l invest- production of water taps and cocks
scope to foundries f o r casting tex- ment. Further, they major is valued at about Rs 1 crore. Taps
t i l e machinery spare parts. equipment, such as physical test- and cocks worth about Rs 25 lakhs
ing equipment, Sand testing equip- are exported a n n u a l l y . O u r impor-
In spite of quite a large number
ment, cupola, hand m o u l d i n g ma- tant customers are C e y l o n , B u r m a ,
of cast i r o n foundries in Bombay,
chine, foundry sand m i l l and I r a q . Fast A f r i c a , E g y p t , Malaya.
there is scope in the l i n e because of
m o u l d i n g oven on hire purchase T h a i l a n d and Indonesia. The most
Huge demand in this city f o r item:.
f r o m the N a t i o n a l Small Industries important centres of production of
o f m u n i c i p a l requirements, f l u s h e s ,
C o r p o r a t i o n , a Government of In- water taps and cocks are Surat in
surface boxes, bends and pipes and
dia Concern. Thus equipment Bombay State and Jullunder in the
strainers. Punjab. Other centres where taps
w o r t h nearly Rs 80,000 can be had
H I G H G R A D E CASTINGS for i n i t i a l investment of about Rs and cocks are produced are D e l h i .
Resides the l i m i t e d scope for low 15,000. Those wishing to start Mathura. Agra and Poona.
grade castings, the scope for foun- foundry for h i g h grade castings in The demand for water taps and
dries m a k i n g h i g h grade castings is Bombay need not immediately go in cocks is expected to increase by 100
excellent. Of the 160 small scale for physical testing equipment, for per cent d u r i n g the next five y e a r .
foundries existing in Bombay, there they can avail of the facility avail- Rapid industrialisation is hound to
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January 16, 1 9 6 0 THE ECONOMIC W E E K L Y

be accompanied by urbanisation. It is not possible to estimate the the small-scale sector. Such items
Further, there is l i k e l y to be greater demand f o r a l l types of steel cast- w h i c h are easy to make should be
stress on health a n d community ings that have been mentioned above. reserved for p r o d u c t i o n on s m a l l -
services. Consequently, a large A l l the large-scale producers engaged scale. T h e y have an advantage over
number o f towns w i l l b e covered b y in the p r o d u c t i o n of steel castings large ones in the matter of over-
water supply schemes, w h i c h w o u l d are w o r k i n g t o f u l l capacity. A t pre- heads and l a b o u r charges and
result in increasing demand f o r sent there is not a single small-scale hence they are able to produce items
water taps and cocks. E x p o r t pros- u n i t m a k i n g steel castings by electric r e q u i r i n g s i m p l e processing, cheapen
pects are also q u i t e b r i g h t . There i n d u c t i o n furnace. Under the Stores Purchase Pro-
is l i k e l i h o o d of increasing purchases gramme, Government has reserved
The investment f o r an electric i n -
by n e i g h b o u r i n g countries where several of its requirements f o r pur-
d u c t i o n furnace of one t o n capacity
also extension of water s u p p l y chase f r o m small units. Bottle
( i t w o u l d give about 1 5 tons o f f i n i s h -
schemes is in progress. caps made of rubber is a suita-
ed castings per m o n t h ) is estimated
RISING D E M A N D FOR BEARINGS to be about Rs 5 to 6 lakhs. Of this, ble i t e m to be included in that l i s t .
other equipment w o u l d cost Rs 2.75 Pimpri Factory alone can keep
L i k e water laps a n d cocks, the de- busy a good number of small-scale
m a n d f o r sanitary f i t t i n g s i n c r u i s i n g lakhs and w o r k i n g c a p i t a l r e q u i r e d
w o u l d amount to Rs 1.75 lakhs. The units.
r a p i d l y and is l i k e l y to d o u b l e dur-
i n g the next five years f o r the same m a i n items of m a c h i n e r y are elec- A n economic u n i t f o r m a k i n g
reasons as those f o r water taps a n d t r i c furnace and chemical and physi- rubber caps f o r bottles can be start-
cocks. The demand f o r hearings f o r cal testing equipment. A l l the items ed w i t h an investment of Rs 75,000.
dicsel engines is increasing t o r re- mentioned have to be i m p o r t e d . The T h i s excludes cost of l a n d and
placement purposes as w e l l as f o r main raw material is steel scrap b u i l d i n g . The equipment r e q u i r e d
o r i g i n a l e q u i p m e n t . It is estimated at w h i c h is easily a v a i l a b l e in the arc Rubber M i x i n g M i l l o f 600 lbs
about 20,000 ( n u m b e r s ) a n d is l i k e l y country. capacity, 6 presses, I b o i l e r and 2
to increase at the rale of 15 per cent or 3 dies. The entire equipment
RUBBER PRODUCTS
per a n n u m d u r i n g the next five years. w h i c h is available l o c a l l y w o u l d
In rubber, several items offer cost nearly Rs, 45,000 and can be
T h e demand f o r r a i l w a y requirements
good scope for p r o f i t a b l e invest- had o n h i r e purchase f r o m N a t i o n a l
such as bearings, bushings a n d axle
ment. They a r e : S m a l l Industries C o r p o r a t i o n b y
boxes is huge and is recurring.
W i t h expansion plans f o r railway- (1) B i c y c l e Accessories, such as, p a y i n g i n i t i a l l y 20 per cent of the
transport system, the demand is pedals and pedal covers, rubber for total cost.
l i k e l y to increase substantially. brakes and hand g r i p s .
SPONGE CHAPPALS
Thus several non-ferrous f o u n d r y ( 2 ) A u t o m o b i l e accessories, such
as bushings, radiator caps, shock There is h a r d l y any need to b u i l d
units can be put up a l l over the coun-
absorbers, door and w i n d o w chan- up a case for the scope of p r o f i t a b l e
t r y to produce items discussed dbove.
nels, m a t t i n g and c o v e r i n g for ac- investment in chappals. These
A unit w i t h a furnace of 200 lbs chappals were first i m p o r t e d f r o m
m e l t i n g capacity, can be put up w i t h c e l e r a t o r , brakes and clutches.
Japan and soon became very popu-
an investment of about Rs I l a k h . ( 3 ) G u r g i c a l goods such as, hot lar. T h e i r p r o d u c t i o n in I n d i a was
Equipment and tools w o u l d cost about water bags, ice caps and tubings. first undertaken by Batas and
Rs 25,000 and w o r k i n g capital re- ( 4 ) Bottle caps for injection Caronn Shoe Company, b o t h of
quirements w o u l d amount to about vials. w h i c h are large-scale units. T h e i r
Rs 75,000. M a i n items of equip- s e l l i n g prices were exhorbitant.
ment are Sklenar Furnace, Pat- ( 5 ) Sponge chappals.
Of the above items, bottle caps r a n g i n g f r o m Rs 7 to Rs 10 per pair,
terns. M o u l d i n g Roxes and H y d r a u l i c as compared w i t h the p r i c e of Japa-
Testing M a c h i n e . The entire equip-v and sponge chappals offer better
scope to s m a l l scale investors. nese chappals w h i c h ranged between
ment is a v a i l a b l e l o c a l l y . Raw mate- Rs 2.50 and Rs 3 per p a i r o f
rials are brass scrap and gun metal, B O T T L E CAPS course, outside I n d i a . T h e huge
w h i c h are also available l o c a l l y . m a r g i n of p r o f i t encouraged some
Bottle caps made of rubber are
ELECTRIC I N D U C T I O N FURNACES needed f o r i n j e c t i o n vials and are small entrepreneurs i n the N o r t h
Steel castings by electric i n d u c t i o n also used as covers for bottles con- to take up their p r o d u c t i o n ; and
furnace offer the most profitable i n - t a i n i n g cSpsules. H i n d u s t a n A n t i - they are now s e l l i n g in B o m b a y f o r
vestment o p p o r t u n i t y . Steel castings biotics, P i m p r i . is one of the largest Rs 4.50 to Rs 5.50 per p a i r . The
are in great demand in the country. buyers of bottle caps. There are cost of p r o d u c i n g these chappals in
Railways an one of the biggest buy- several other manufacturers of drugs an economic size u n i t in Bombay is
l i k e Glaxo, Dumex, Lederlc, A t u l , estimated by r u b b e r experts to be
ers of steel r a t i n g s , namely buffers
A l e m b i c and Sarabhai who need a r o u n d Rs 2.25 per p a i r .
and casings. Steel component parts
for tractors arc also r e q u i r e d in large them in large quantities. Production A s m a l l u n i t f o r the manufacture
quantity. Steel plants have huge o f p e n n i c i l l i n , insulin a n i v i t a m i n of sponge chappals can be p u t up
r e c u r r i n g demand for steel castings, injections has risen in recent years w i t h an investment of Rs 1 lakhs.
such as. m o u l d s for pig i r o n m a k i n g and may be expected to rise r a p i d l y The m a i n items of equipment are 1
in the near future. Rubber M i x i n g M i l l , 12 pressers, 1
machine, etc. For stone crushing
and m i n i n g i n d u s t r y , for components Bottle caps are presently being b o i l e r 10 H.P., 1 vulcaniser for
of electric and pneumatic hoists and produced by large-scale ' producers. shrinkage, 10 dies, 6 slabs and 1
cranes, steel castings are needed in Their p r o d u c t i o n .is a very, easy p u n c h i n g machine. This 1 equipment
large q u a n t i t y . process and is very suitable for w i l l cost about Rs. 70.000.

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