12 November 2018

FOCUS ON INDIA: Metal Casting Sector

India has overtaken the United States to emerge as the second largest producers of casting, behind China in 2016.

METAL CASTING SECTOR: INDIA

India has overtaken the United States to emerge as the second largest producers of casting, behind China in 2016. India metal casting production stood at 11.35 MMT (million metric tons) valued at approx. € 16.5 billion in 2017. India exports roughly 13% of its total production valued at ~ € 2.2 billion. The Indian castings industry is growing around 5% over last 10 years.

Source: Secondary research

In 2016, world casting production reached 104.4 MMT. The other top casting countries are Japan, Germany, Russia, Korea, Mexico, Brazil and Italy. 

There are approx 5000 casting (foundry) units in India out of which 80% can be classified as Small Scale units and 10% each as Medium & Large Scale units. Roughly 1500 units are having International Quality Accreditation like ISO. The industry employs about 500,000 people directly and 1500,000 indirectly.

Source: Secondary research

MAIN END-USER SEGMENTS:

The Indian foundry industry manufacturers metal cast components for applications in Auto, Tractor, Railways, Machine tools, Sanitary, Pipe Fittings, Defense, Aerospace, Earth Moving, Textile, Cement, Electrical, Power machinery, Pumps / Valves, Wind turbine generators etc.

Source: Secondary research

PRODUCTION GROWTH OVER LAST 10 YEARS: The production is growing on an avg of 5% in last 10 years.

Source: IIF, India

PRODUCT MIX: Grey iron castings account for roughly 70% of the all the casted materials.

Source: Secondary research

 

MAIN MANUFACTURING LOCATIONS: South India, particularly Tamil Nadu and Karnataka, contribute 50% of total production of castings in India.

RAW MATERIAL & ENERGY: Overall India is exporter of Pig Iron but imports scrap metals, Coke etc. Molding sand is locally available & India has an advantage on this account. Energy cost typically varies between 12-15%. 

 

LABOR: India has major competitive advantage over the foundry industries in the developed countries. The total labor cost account for around 12 to 15%, however increasing every year.

 

SWOT ANALYSIS OF INDIAN METAL CASTING SECTOR: