Castings prices to surge due to higher input costs - Report
It is reported that prices of castings are likely to go up in the next 2 to 3 months due to increase in input costs.
According to Mr V Mahadevan MD of Ennore Foundries Limited and also president of the Institute of Indian Foundrymen, this can be attributed to steadily increasing prices of raw materials and power.
He said that "Though we are doing our best to improve our efficiency to cut cost and increase productivity, it may be difficult for the industry to absorb the increase in production cost entirely. I believe that the Indian foundry industry will utilize this opportunity to become an Asian hub for supply of high quality castings for these industries."
Mr Mahadevan said that "Globally, 70% of the castings is consumed by the automotive industry. In India, 30% to 40% of the total production goes to the automotive industry. Indian foundry industry may see at least a USD 1 billion investment in the next 3 years in capacity expansion and modernization of existing facilities."
Currently, with over 4,750 foundries, India is the fourth largest casting producer in the world after China, the US and Japan. The industry is growing at 10% to 15% annually. As a result of booming automobile industry and especially the auto ancillary industry, the demand for the automotive castings is also witnessing an unprecedented growth. In 2006, India produced a record 7.17 million tonnes of castings and in the next 3 years, India may move to the third position, beating.
« Back
|