The Indian foundry industry anticipates $3 billion of investment in the next 10 years to see the possible demand of 30 million tonnes of non-ferrous castings and ferrous castings in the country
Through the Central Government’s Make-in-India initiative and the push on the industrial manufacturing zone, the Foundry Industry of India anticipates $3 billion of investment in next 10 years to see the possible demand of 30 million tonnes of castings in the country by then.
Mr. K. Samaraj, President of the Institute of Indian Foundrymen and Nithyanandan Devaraaj, Chairman of the Southern Region of the institute told media that the existing installed capacity is 15 million tonnes & yearly production is 10 million tonnes. Globally, India is the 3rd highest manufacturer of castings. Though, since the last 2 years, there had been barely any volume addition as the projected demand was not there.
Nearly 60% of the non ferrous and ferrous casting production in the nation is for the automobile sector. Demand from sectors such as infrastructure, mining & oil have also slackened down. There are signs of revival in the automobile sector in the recent months. One more sector of growth that the foundries expect for both, Non-Ferrous Casting and Ferrous Castings, are in defence procurement. The Indian foundry industry needs to invest and increase capacity, however it has nearly 50% extra capacity now. It needs to have skilled manpower & be energy efficient. Mr. Samaraj said in additional couple of years, all large and medium-scale foundries are likely to have sand reclamation plants for reuse of sand. The industry also believes consolidation of capacities to some amount.
The primary market for Indian casting exports are the European Union and the U.S. In 2014-2015 and this year, total casting exports were to the tune of 2.2 billion dollars, the industry expects only a marginal increase because the global economy has slowed down. Imports were to the tune of $800 million. Some sectors import castings from China and Thailand. The landing cost of castings from China for specific sectors is 15% to 20% lower than the Indian prices. The Indian foundries have sought anti-dumping duty on some castings imported from China, Mr. Devaraaj said. “We expect the domestic market to be the growth driver for the industry,” Mr. Samaraj added.
Visit Us: Veena Enterprise