Post on 31-Jul-2020
Overview By
Subodh Panchal
Past President
The Institute of Indian Foundrymen
Indian
Foundry Industry
11th September, 2010
International Foundry Forum, Barcelona
Major Foundry Pockets in India
International Foundry Forum, Barcelona (September, 2010) 2
Ahmedabad
Jaipur
Pune
Bangalore
Bhilai
Hyderabad
Nagpur
Overview
The Indian Foundry industry produces approx 7 Million MT of castings employing estimated 500,000 persons directly & another 1.5 millions indirectly.
The growth of foundry industry is very important for inclusive growth, other engineering sectors & the overall Indian Economy .
3 International Foundry Forum, Barcelona (September, 2010)
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
4 International Foundry Forum, Barcelona (September, 2010)
Significance of Foundry Industry
Approx 32% Output of Foundry Industry goes to
Auto Industries & Balance to other downstream
Engineering Sector
Automotive Mission Plan (AMP) 2006-2016
envisages 4 Fold Growth by 2016. i.e. from
$34 Billion industry to $ 122-160 billion industry and
employing about 25 millions by 2016
AMP 2006-16 will drive demand of Castings from
Foundry Industry
5 International Foundry Forum, Barcelona (September, 2010)
Significance of Foundry Industry
Corresponding Growth in Foundry Sector
Vital to sustain Growth in Auto & Other
Engineering Sectors
Graph below Depicts Sectorwise
Consumption of Castings in percentage
6 International Foundry Forum, Barcelona (September, 2010)
7 International Foundry Forum, Barcelona (September, 2010)
Significance of Foundry Industry Sector wise consumption of castings as %
of Total Production
International Foundry Forum, Barcelona (September, 2010) 8
2.77 2.90 3.22 3.12 3.16
3.51 4.04
4.62
6.05
7.18 7.77
6.84
0
1
2
3
4
5
6
7
8
9
Mil
lio
n M
T
Malleable Iron
Non Ferrous
S G Iron
Steel
Grey Iron
Total
Production Trend
Export Trends
International Foundry Forum, Barcelona (September, 2010) 9
Types of Metal Castings Share in %
10 International Foundry Forum, Barcelona (September, 2010)
Top Ten Casting Producing Countries
(Figures in Million MT)
International Foundry Forum, Barcelona (September, 2010) 11
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
Million MT
Outsourcing Trends for
Auto Components
2.95
5.9
20
0
5
10
15
20
25
2006-07 2008-09 2013-14
US
D i
n B
illi
on
s
12 International Foundry Forum, Barcelona (September, 2010)
Indian Automobile Industry Overview
The Indian Automobile industry is the seventh
largest in the world with an annual production
of over 2.6 million units in 2009.
In 2009, India emerged as Asia's fourth largest
exporter of automobiles, behind Japan, South
Korea and Thailand.
By 2050, the country is expected to top the
world in car volumes with approximately 611
million vehicles on the nation's roads.
International Foundry Forum, Barcelona (September, 2010) 13
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 has
resulted in the expansion of manufacturing
facilities of several automobile companies like
Hyundai Motors, Nissan, Toyota, Volkswagen
and Suzuki.
International Foundry Forum, Barcelona (September, 2010) 14
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 to
export about 50,000 cars manufactured in India
by 2011.
International Foundry Forum, Barcelona (September, 2010) 15
World Automobile Giants in India
In September 2009, Ford Motors announced its
plans to setup a plant in India with an annual
capacity 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 global
production business.
International Foundry Forum, Barcelona (September, 2010) 16
World Automobile Giants in India
Fiat also announced that it would source more
than US$1 billion worth auto components from
India.
According to Bloomberg L.P., in 2009 India
surpassed China as Asia's fourth largest
exporter of cars.
International Foundry Forum, Barcelona (September, 2010) 17
Rank wise Largest Automobile
Manufacturers in India by Sales
1. Maruti Suzuki
2. Hyundai
3. Tata Motors
4. Mahindra
5. GM Chevrolet
6. Honda
7. Toyota
8. Ford
9. Fiat
10. Škoda
International Foundry Forum, Barcelona (September, 2010) 18
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,7
Series, X3, X5, X6, Z4.
Chevrolet: Spark, Beat, Aveo U-VA, Aveo,
Optra, Cruze, Tavera.
Fiat: Grande Punto, Linea, Palio Stile.
International Foundry Forum, Barcelona (September, 2010) 19
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, Murciélago.
Mercedes-Benz: C-Class, E-Class.
Mitsubishi: Lancer, Lancer Cedia, Pajero.
Nissan: Micra, Teana, X-Trail.
International Foundry Forum, Barcelona (September, 2010) 20
Locally manufactured Automobiles of
Foreign Brands
Rolce Royce:Phantom, Ghost.
Škoda: Fabia, Octavia, Laura, Superb.
Toyota: Corolla, Innova, Camry, Fortuner,
Prado.
Volkswagen: Polo, Jetta, Passat, Beetle,
Phaeton, Vento.
International Foundry Forum, Barcelona (September, 2010) 21
Commercial Vehicle Manufacturers
in India (Local Brands)
Local Brands
Ashok Leyland
Force
Mahindra Navistar
Premier
Tata
International Foundry Forum, Barcelona (September, 2010) 22
Commercial Vehicle Manufacturers
in India (Foreign Brands)
Foreign Brands
Volvo
Audi
BMW
Mercedes-Benz
International Foundry Forum, Barcelona (September, 2010) 23
Electric Car Manufacturers in India
Ajanta Group
Mahindra
Hero Electric
REVA
Tata International
Tata
International Foundry Forum, Barcelona (September, 2010) 24
Automobile & Auto Component
Industry Turn Over
The Automotive Component Industry's output
amounted for the financial year 2008-09 US$ 19
billion with a growth rate of 6.1% against
financial year 2007-08
International Foundry Forum, Barcelona (September, 2010) 25
Car Production (Nos. in Millions)
International Foundry Forum, Barcelona (September, 2010) 26
0.26
0.35 0.41 0.40 0.39 0.57 0.52 0.56
0.61 0.84
1.03 1.11
1.32
1.52 1.52
1.93
0.00
0.50
1.00
1.50
2.00
2.50 M
illi
on
s
MUVs Production (Nos. in Millions)
International Foundry Forum, Barcelona (September, 2010) 27
0.05
0.07
0.13 0.13 0.11
0.12 0.13
0.11 0.11
0.15
0.18 0.20
0.22 0.25
0.22
0.27
0.00
0.05
0.10
0.15
0.20
0.25
0.30
Mil
lio
ns
LCVs Prduction (Nos. in Milkions)
International Foundry Forum, Barcelona (September, 2010) 28
0.09
0.13
0.09 0.07
0.06 0.06 0.06 0.07
0.08
0.11
0.14
0.17
0.23
0.25
0.22
0.32
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35 M
illi
on
s
M&HCVs Production (Nos. in Millions)
International Foundry Forum, Barcelona (September, 2010) 29
0.10
0.13
0.15
0.10 0.08
0.11 0.09 0.10
0.12
0.17
0.21 0.22
0.29 0.29
0.19
0.25
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
Mil
lio
ns
Tractors Production (Nos. in Millions)
International Foundry Forum, Barcelona (September, 2010) 30
0.16
0.19
0.23
0.26 0.25 0.26 0.25
0.21 0.17
0.19
0.25
0.30
0.35 0.35
0.34
0.43
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
Mil
lio
ns
Scooters Production (Nos. in Millions)
International Foundry Forum, Barcelona (September, 2010) 31
1.03
1.23
1.32 1.28
1.32
1.26
0.88 0.94
0.85
0.94 0.99
1.02
0.94
1.07 1.16
1.49
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
Mil
lio
ns
Motorcycles Production
(Nos. in Millions)
International Foundry Forum, Barcelona (September, 2010) 32
0.65
0.81 0.99 1.13
1.39 1.79
2.18
2.91
3.88
4.36
5.19
6.20
7.11 6.50
6.80
8.44
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00 M
illi
on
s
Mopeds Production (Nos. in Millions)
International Foundry Forum, Barcelona (September, 2010) 33
0.52
0.62
0.67 0.67 0.67
0.72 0.69
0.43
0.35 0.33
0.35 0.38 0.38
0.43 0.44
0.57
0.20
0.30
0.40
0.50
0.60
0.70
0.80
Mil
lio
ns
Auto Component Industry Production
(in US $ BLN)
International Foundry Forum, Barcelona (September, 2010) 34
3.28 3.01 3.25 3.89 3.97 4.47 5.43
6.73
8.70
12.00
15.00
18.00 18.40
22.00
26.00
-8%
8%
20%
2%
13%
21% 24%
29%
38%
25%
20%
2%
20% 18%
-20%
-10%
0%
10%
20%
30%
40%
50%
-
5
10
15
20
25
30
Turnover
* Estimated
Auto Component Industry Exports
(in US $ BLN)
International Foundry Forum, Barcelona (September, 2010) 35
0.33 0.35 0.46
0.63 0.58 0.76
1.27
1.69
2.47 2.87
3.62 3.80 3.80
6%
30% 37%
-8%
31%
68%
33% 46%
16%
26%
5%
0%
-20%
0%
20%
40%
60%
80%
0
1
2
3
4
Exports
Auto Component Industry Investment
(in US $ BLN)
International Foundry Forum, Barcelona (September, 2010) 36
2.30 2.65
3.10
3.75
4.40
5.40
7.20 7.30
9.00
15%
17%
21%
17%
23%
33%
1%
23%
0%
5%
10%
15%
20%
25%
30%
35%
-
2
4
6
8
10
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Investment
India as a hub of Cast Components
Now the fourth largest producer of metal
castings worldwide, India has increased its
casting production by more than 100% since
2002.
Expansion stems from India’s large and rapidly
growing economy, which has the potential to
raise its income per capita to 35 times current
levels over the next 40 years.
International Foundry Forum, Barcelona (September, 2010) 37
India as a hub of Cast Components
According to Goldman Sachs, in 2059, India is
expected to have one of the three largest
economies (by GDP) in the world, along with China
(first) and the U.S. (second).
The automotive sector accounts for 4.2% of India’s
GDP, since 2002, production volume has a 16%
compund and annual growth rate (CAGR).
Some economists believe India has the potential to
own up to 7% of the world’s auto components
market.
International Foundry Forum, Barcelona (September, 2010) 38
Hurdles
However, India faces some hurdles. Along with
a lack of sufficient infrastructure, consumable
costs are higher in India than in developed
countries.
International Foundry Forum, Barcelona (September, 2010) 39
Future
Due to the growing expectations of OEMs regarding
the quality and quantity of castings, India is
expected to produce larger casting facilities over
the next few years.
The size and scope of large plants are required to
address investment requirements, power shortages
and a talent crunch.
This means that manufacturers with latest
technology of equipments and raw materials will
have a bright opportunity in India.
International Foundry Forum, Barcelona (September, 2010) 40
Innovative Suggestions
Foreign manufacturers and suppliers should
help Indian foundries to introduce new markets
(Where European foundries have stopped
catering).
Differed payment terms of some European
countries can be a major attraction for Indian
Foundries going for expansion.
International Foundry Forum, Barcelona (September, 2010) 41
International Foundry Forum, Barcelona (September, 2010) 42