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7/25/2019 2010 India IIF FOUNDRY INDUSTRY
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Overview By
Subodh Panchal
Past PresidentThe Institute of Indian Foundrymen
IndianFoundry Industry
11th September, 2010International Foundry Forum, Barcelona
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Major Foundry Pockets in India
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Ahmedabad
Jaipur
Pune
Bangalore
Bhilai
Hyderabad
Nagpur
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Overview The Indian Foundry industry produces approx
7 Million MT of castings employing estimated500,000 persons directly & another 1.5 millionsindirectly.
The growth of foundry industry is very important forinclusive growth, other engineering sectors & theoverall Indian Economy .
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Significance of Foundry Industry Foundry Industry is Major Feeder to following sectors:-
Automobiles & Auto Components Railways Power Sector Tractor Industry Earth Moving Machinery Pumps, Compressors, Pipes Valves & Pipe Fittings Electrical/Textile/Cement/Agro Machinery
Machine Tools & Engineering Industries Sanitary Castings Engineering Exports
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Significance of Foundry Industry Approx 32% Output of Foundry Industry goes to
Auto Industries & Balance to other downstreamEngineering Sector
Automotive Mission Plan (AMP) 2006-2016
envisages 4 Fold Growth by 2016. i.e. from$34 Billion industry to $ 122-160 billion industry andemploying about 25 millions by 2016
AMP 2006-16 will drive demand of Castings fromFoundry Industry
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Significance of Foundry Industry
Corresponding Growth in Foundry SectorVital to sustain Growth in Auto & OtherEngineering Sectors
Graph below Depicts SectorwiseConsumption of Castings in percentage
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Significance of Foundry Industry
Sector wise consumption of castings as %
of Total Production
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Export Trends
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Types of Metal Castings Share in %
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Top Ten Casting Producing Countries
(Figures in Million MT)
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33.5
10.8
7.8
7
5.8
5.7
3.4
2.6
2.4
2.1
0 10 20 30 40
China
USA
Russia
India
Ger
Japan
Brazil
Italy
France
Korea
Mill ion MT
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Outsourcing Trends for
Auto Components
2.95
5.9
20
0
5
10
15
20
25
2006-07 2008-09 2013-14
USDi
n
Billions
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Indian Automobile Industry Overview The Indian Automobile industry is the seventh
largest in the world with an annual productionof over 2.6 million units in 2009.
In 2009, India emerged asAsia's fourth largestexporter of automobiles, behind Japan, SouthKorea and Thailand.
By 2050, the country is expected to top theworld in car volumes with approximately 611million vehicles on the nation's roads.
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Indian Automobile Industry Overview India has emerged as one of the world's largest
manufacturers of small cars. According to New York Times, India's strong
engineering base and expertise in the
manufacturing of low-cost, fuel-efficient cars hasresulted in the expansion of manufacturingfacilities of several automobile companies likeHyundai Motors, Nissan, Toyota, Volkswagenand Suzuki.
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World Automobile Giants in India In 2008, Hyundai Motors alone exported
240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles
manufactured in its India plant by 2011.
Similarly, General Motors announced its plans toexport about 50,000 cars manufactured in India
by 2011.
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World Automobile Giants in India In September 2009, Ford Motors announced its
plans to setup a plant in India with an annualcapacity of 250,000 cars for US$500 million.
The cars will be manufactured both for the
Indian market and for export. The company said that the plant was a part of its
plan to make India the hub for its globalproduction business.
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World Automobile Giants in India Fiat also announced that it would source more
than US$1 billion worth auto components fromIndia.
According to Bloomberg L.P., in 2009 India
surpassed China as Asia's fourth largestexporter of cars.
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Rank wise Largest Automobile
Manufacturers in India by Sales1. Maruti Suzuki
2. Hyundai3. Tata Motors
4. Mahindra
5. GM Chevrolet6. Honda
7. Toyota
8. Ford9. Fiat
10. koda
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Locally manufactured Automobiles of
Foreign Brands Audi: A4, A6, A8, Q5, Q7, TT, R8.
Bentley: Continental GT, Continental FS,Continental GTC, Mulsanne.
BMW: 3 Series, 5 Series,M3, GT 5,6 Series,7Series, X3, X5, X6, Z4.
Chevrolet: Spark, Beat, Aveo U-VA, Aveo,
Optra, Cruze, Tavera. Fiat: Grande Punto, Linea, Palio Stile.
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Locally manufactured Automobiles of
Foreign Brands Ford: Ford Figo, Ikon, Fiesta, Endeavour.
Honda: Jazz, City, Civic, Accord. Hyundai: Santro, i10, i20, Accent, Verna
Transform, Sonata Transform. Lamborghini:Gallardo, Murcilago.
Mercedes-Benz: C-Class, E-Class.
Mitsubishi: Lancer, Lancer Cedia, Pajero.
Nissan: Micra, Teana, X-Trail.
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Locally manufactured Automobiles of
Foreign Brands Rolce Royce:Phantom, Ghost.
koda: Fabia, Octavia, Laura, Superb. Toyota: Corolla, Innova, Camry, Fortuner,
Prado.
Volkswagen: Polo, Jetta, Passat, Beetle,Phaeton, Vento.
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Commercial Vehicle Manufacturers
in India (Local Brands) Local Brands
Ashok Leyland Force
Mahindra Navistar Premier
Tata
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Commercial Vehicle Manufacturers
in India (Foreign Brands) Foreign Brands
Volvo Audi
BMW Mercedes-Benz
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Electric Car Manufacturers in India Ajanta Group
Mahindra Hero Electric
REVA Tata International
Tata
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Automobile & Auto Component
Industry Turn Over The Automotive Component Industry's output
amounted for the financial year 2008-09 US$ 19billion with a growth rate of 6.1% againstfinancial year 2007-08
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Car Production (Nos. in Millions)
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MUVs Production (Nos. in Millions)
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LCVs Prduction (Nos. in Milkions)
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M&HCVs Production (Nos. in Millions)
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Tractors Production (Nos. in Millions)
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Scooters Production (Nos. in Mill ions)
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Motorcycles Production
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Motorcycles Production(Nos. in Millions)
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Mopeds Production (Nos. in Millions)
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Auto Component Industry Production
(in US $ BLN)
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Auto Component Industry Exports
(in US $ BLN)
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Auto Component Industry Investment
(in US $ BLN)
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India as a hub of Cast Components
Now the fourth largest producer of metal
castings worldwide, India has increased itscasting production by more than 100% since2002.
Expansion stems from Indias large and rapidlygrowing economy, which has the potential toraise its income per capita to 35 times current
levels over the next 40 years.
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India as a hub of Cast Components
According to Goldman Sachs, in 2059, India isexpected to have one of the three largesteconomies (by GDP) in the world, along with China(first) and the U.S. (second).
The automotive sector accounts for 4.2% of IndiasGDP, since 2002, production volume has a 16%compund and annual growth rate (CAGR).
Some economists believe India has the potential toown up to 7% of the worlds auto componentsmarket.
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Future
Due to the growing expectations of OEMs regardingthe quality and quantity of castings, India isexpected to produce larger casting facilities overthe next few years.
The size and scope of large plants are required toaddress investment requirements, power shortagesand a talent crunch.
This means that manufacturers with latesttechnology of equipments and raw materials willhave a bright opportunity in India.
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Innovative Suggestions
Foreign manufacturers and suppliers should
help Indian foundries to introduce new markets(Where European foundries have stoppedcatering).
Differed payment terms of some Europeancountries can be a major attraction for IndianFoundries going for expansion.
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