Status Of Foundry Industry

Status of Indian Foundry Industry ByDr H Sundara Murthy PresidentThe Institute Of Indian Foundrymen

The Institute of Indian Foundrymen..201120122013India7.67.77.9China9.38.78.5EU1.60.71.7USA1.71.52World2.82.63.2

The Institute of Indian Foundrymen..GDP Forecast UN Report

There are approx 4600 units in the country located in the areas marked in the map engaged in various types of metal castingsLocation of Major Clusters

The Institute of Indian Foundrymen.. Indian Foundry Industry At a GlanceApprox Units :4600Production: 9 Million MT PAEmployment: 500,000 Directly 150,0000 indirectMajor Clusters: 19Productivity Per unit : 1950 MT/PAAvg Productivity/Man/PA:20Max Productivity /Man/PA:90

The Institute of Indian Foundrymen..Castings Production Trends in Million MT-India

The Institute of Indian Foundrymen..Growth in Production of Castings in 2010-11 vs 2009-10Type% GrowthGrey Iron23Ductile Iron26Steel21.6Non Ferrous13.5

Overall23.8

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 2009-2010The 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

The Institute of Indian Foundrymen..Export Trends :

The Institute of Indian Foundrymen..Sectorwise Consumption of Castings

The Institute of Indian Foundrymen..Product Mix

The Institute of Indian Foundrymen..Share of Major Casting Producing Countries

The Institute of Indian Foundrymen..Top 1-6 Casting Producers

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 CastingsBrazil 40.87%Germany22.82%India22.3%Italy17.96%China12.18%USA11.35%Japan8.18%

The Institute of Indian Foundrymen..Top 15 Produce >13% Name of UnitProduction of Castings T/YearYear : 2010-11ELECTROSTEEL CASTINGS LTD275284LANCO INDUSTRIES LTD.123422RAIL WHEEL FACTORY106525HINDUJA FOUNDRIES88545NELCAST LTD. 83469TATA MOTORS JAMSHEDPUR + Pune81274BRAKES INDIA LTD.75886DCM ENGINEERING PRODUCTS62327SAKTHI AUTO COMPONENT LTD.50000COOPER FOUNDRY, SATARA49200MAHINDRA- HINODAY + Mahindra Auto48719JAYASWALS NECO LTD. +NECO CASTINGS48085ASHOK IRON WORKS 45112KIRLOSKAR FERROUS INDUSTRIES LTD.41905WELCAST STEELS LTD.38241

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

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

The Institute of Indian Foundrymen..

Foundry Industry -Foundries50% 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 2011-12Most 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

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

The Institute of Indian Foundrymen..Foundry Material ManufacturersMost 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.

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%

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

The Institute of Indian Foundrymen..TractorsGrowth in 2011-12 is likely to be lower in 2011-12

Expected growth this FY is 10%

The Institute of Indian Foundrymen..Machine ToolsRegistered 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

The Institute of Indian Foundrymen..Power & InfrastructureGovt 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

The Institute of Indian Foundrymen..Vision For Indian Foundry Industry

The Institute of Indian Foundrymen..Vision For Indian Foundry Industry

The Institute of Indian Foundrymen..Vision For Indian Foundry Industry

The Institute of Indian Foundrymen..Vision For Indian Foundry Industry

The Institute of Indian Foundrymen..Govt. InitiativesCurrent 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 yearsAs 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

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

The Institute of Indian Foundrymen..New/Recent Plans for Investments in Rs CroresMaruti 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

The Institute of Indian Foundrymen..Upcoming/New Projects-Auto IndustryFiat 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

The Institute of Indian Foundrymen..New/Recent Foundry Projects / ExpansionsDCM EnggSharp ChucksRPS VikasBhagwati FoundriesFlowmetalicNelcastBrakes IndiaL&TAce Designers

Steel CastIndian SmeltingKastrelPSG CoimbatoreBagree Alloys Tata MotorsHindujaAmtekDGP Hinoday(M&M)Srinivas engg

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

The Institute of Indian Foundrymen..Major ConstraintsAvailability of skilled manpowerReliable power supply Raw Materials shortage forecast by some High cost of capital High cost of Energy

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

The Institute of Indian Foundrymen..

Thank You

The Institute of Indian Foundrymen..