Last Updated: 3/17/2017 3:42:00 AM
The Indian foundry industry manufacturers metal cast components for applications in Auto, Tractor, Railways, Machine tools, Sanitary, Pipe Fittings, Defence, Aerospace, Earth Moving, Textile, Cement, Electrical, Power machinery, Pumps / Valves, Wind turbile generators etc. Foundry Industry has a turnover of approx. USD 19 billion with export approx. USD 2.5 billion.
However, Grey iron castings have the major share i.e. approx 68% of total castings produced.
Approx 1500 units are having International Quality Accreditation. Several large foundries are modern & globally competitive. Many foundries use cupolas using LAM Coke. However, these are gradually shifting to Induction Melting. There is growing awareness about environment & many foundries are switching over to induction furnaces & some units in Agra are changing over to cokeless cupolas.
Major Foundry Clusters:-
Each cluster is known for its products. The major foundry clusters are located in Batala, Jalandhar, Ludhiana, Agra, Pune, Kolhapur, Sholapur, Rajkot, Mumbai, Ahemdabad, Belgaum, Coimbatore, Chennai, Hyderabad, Howrah, Kolkata, Indore, Chennai, Ahemdabad, Faridabad, Gurgaon etc
Typically, each foundry cluster is known for catering to some specific end-use markets. For example, the Coimbatore cluster is famous for pump-sets castings, the Kolhapur and the Belgaum clusters for automotive castings and the Rajkot cluster for diesel engine castings, Howrah cluster for sanitary castings etc.
The total Manpower in Foundry Sector is approx. 500,000 Directly & 150,00,00 indirectly. The foundry sector is highly labour intensive & currently generates employment for 2 Millions directly & indirectly mainly from socially & economically weaker sections of society. It has potential to generate additional employment of 2 Million in next 10 years.
As per 50th World casting Census published by Modern Castings USA in December 2016, Global Casting Production Stagnant. Worldwide casting production grew by Half a percent in 2015-16.
In 2015, world casting production reached 104.1 million metric tons, a shade over the 103.7 million metric tons produced in 2014 and 103.02 million metric tons in 2013 there is a marginal growth of approx 0.4 % from 2014 to 2015. It is the 6th year in a row the market has expanded after global recession from 2008-09. The World’s two top producing Nations in 2014 both reported small decrease in production. China’s total decreased by 1.3% from 46.2 million to 45.6 million tones. While the USA dropped 0.8% to 10.39 million metric tons from 10.47 million tons. There is a 7.5% increase in production in India to 10.77 million tons. China accounts for 44% of the total casting production in the World and India & USA combined 20% of total Production.
Brazil, last year 7th largest casting producing nation, has experienced two straight years of double digit percentage decreases in production. It now sits at the nine spot of the World’s top 10. The remaining 2015 top 10 casting nations by tonnage are Japan at 5.4 million tonnes, Germany at 5.3 Million, Russia at 4.2 million, Republic of Korea, at 2.6 Million, Mexico at 2.56 Million, Brazil at 2.32 Million and Italy at 2.03 Million tonnes.
Out of the total 37 participating nations in the census, only 14 countries reported an uptick in production. Of the countries reported growth, India’s & Mexico’s production growth were the most significant in terms of tonnage, but several small nations also reported double digit percentage increases like Portugal, Romania, Sweden & South Africa.
The total number of casting units in the world is about 47000 down from 48164 in 2010. As global casting production had increased in the last five years, the decrease in plants indicates metalcastings businesses are consolidating and becoming more efficient.
(Source : Modern Castings, USA)
Role in Manufacturing Sector :
The new manufacturing policy envisages the increase in the share of manufacturing in the GDP to 25% from current 15% & to create 100 Million additional jobs in next 10 years. Since all engineering & other sectors use metal castings in their manufacturing, the role of foundry industry to support manufacturing is very vital. It is not possible to achieve the above goal without the sustainable corresponding growth of the foundry sector
Production in Million Tonnes.:
Exports Import trends:
The Exports have been showing healthy trends approx 25-30% YOY till 2011-12 after that there was slow down in export. However, the current exports for FY 2015-16 are approx USD 2.5 billions.
Sectorwise consumption of Casting
Automobile Sector is major consumers of castings, Please see the Chart Below.