The Institute of Indian

Foundrymen..

Status of Indian Foundry Industry

By
Dr H Sundara Murthy
President
The Institute Of Indian Foundrymen

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

World

2.8

2.6

3.2

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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

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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

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Castings Production Trends in Million MT-India

Casting Production Trends in Million MT-India

10
9
8
7
6
5
4
3
2
1
0

9.05
7.18

7.77
6.84

6.05

2.77

2.9

3.22

Grey C.I.

3.12

3.16

SG Iron

3.51

4.04

Malleable

4.62

Steel

non ferrous

TOTAL

7.44

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Growth in Production of Castings in

2010-11 vs 2009-10
Type
Grey Iron
Ductile Iron
Steel
Non Ferrous
Overall

% Growth
23
26
21.6
13.5
23.8

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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

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Export Trends :

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Sectorwise Consumption of Castings

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Product Mix

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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

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Top 1-6 Casting Producers

Top Six Casting producers of Castings

45
40
35
Figs in30
Million MT
25
20
15
10
5
0

China
India
USA
Germa
ny
Japan
Russia

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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%

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Top 15 Produce >13%

Name of Unit
ELECTROSTEEL CASTINGS LTD
LANCO INDUSTRIES LTD.
RAIL WHEEL FACTORY
HINDUJA FOUNDRIES
NELCAST LTD.
TATA MOTORS JAMSHEDPUR + Pune
BRAKES INDIA LTD.
DCM ENGINEERING PRODUCTS
SAKTHI AUTO COMPONENT LTD.
COOPER FOUNDRY, SATARA
MAHINDRA- HINODAY + Mahindra Auto
JAYASWALS NECO LTD. +NECO CASTINGS
ASHOK IRON WORKS
KIRLOSKAR FERROUS INDUSTRIES LTD.
WELCAST STEELS LTD.

Production of Castings T/Year

Year : 2010-11
275284
123422
106525
88545
83469
81274
75886
62327
50000
49200
48719
48085
45112
41905
38241

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Various Types of Castings Produced in

India

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Various Types of Castings Produced

in India

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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

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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

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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.

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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%

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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

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Tractors

Growth in 2011-12 is likely to be lower in 2011-12

Expected growth this FY is 10%

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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

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Power & Infrastructure

Govt of India plans a target of USD one trillion of

investment during 12th plan ( 2012-17)

Power sectors 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

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Vision For Indian Foundry Industry

30

Production In Million MT/PA

25
20
15
10
5
0

2010

2015

2020

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Vision For Indian Foundry Industry

5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0

Avg productivity /unit in MT PA

2010

2015

2020

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

The Institute of Indian

Foundrymen..

Vision For Indian Foundry Industry

Savings in Sp Energy Consumption in %
10%

5%

0%
2010

2015

2020

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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

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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

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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

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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

Bajaj Auto for two wheelers & cars INR

250 Cr
1500 Cr

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New/Recent Foundry Projects /

Expansions
DCM Engg
Sharp Chucks
RPS Vikas
Bhagwati Foundries
Flowmetalic
Nelcast
Brakes India
L&T
Ace Designers

Steel Cast
Indian Smelting
Kastrel
PSG Coimbatore
Bagree Alloys
Tata Motors
Hinduja
Amtek
DGP Hinoday(M&M)
Srinivas engg

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New Foundries
Green Tech Industries of Taiwan new foundry near

Chennai ( Meita Group) 100% EOU supplying

turbochargers 1100 MT/Annuam

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Major Constraints
Availability of skilled manpower
Reliable power supply
Raw Materials shortage forecast by some
High cost of capital
High cost of Energy

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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

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Thank You