The Indian foundry business is eyeing abroad markets to greater than double its share within the international commerce over the following 5 years. In addition to, it’s also betting on railways and defence to submit increased development in volumes, stated a prime official.
“Currently, India is the second largest producer of castings at 13.38 million tonnes per annum (MTPA). However, its share in the total global trade is 2.4%,” stated Sanjay Shroff, president, The Institute of Indian Foundrymen (IIF).
“But Indian exports are set to scale up to $4 billion (from the current $3.5 billion) in the next five years to achieve a 6% share in the total global imports. For this, it will be focusing on competitiveness, value addition and tapping markets other than the U.S. and the Europe,” he stated.
Now, the foundry business is eyeing Bangladesh, Panama, Sri Lanka, Ghana, Cambodia and different international locations which can be rising at a median charge of greater than 10% year-on-year.
Final 12 months, about 4,550 foundries within the massive, medium and small scale segments within the organised sector produced 13.38 MTPA, which was an 11% enhance over the corresponding year-ago interval. It’s more likely to finish the present fiscal with a unfavourable development of 10-15% as a result of general slowdown within the Indian economic system.
“Auto industry is the biggest consumer at 32%, followed by railways at 6%. We expect an uptick in the economy during the third quarter of 2020-21,” he stated.
Explaining that every one was not misplaced, Mr. Shroff stated the IIF had drawn up a five-year highway map to extend the toal income from the present $20 billion to $30 billion.
“If India needs to achieve its goal of a $5-trillion economy, then the Indian foundries need to grow by at least 25% year-on-year for the next five years. This calls for suitable intervention, investment by industries, technology, skilling and focusing on value addition. If foundry sector supports manufacturing, then the goal of $5 trillion economy can be easily achieved,” he stated.
Asserting that the Indian foundry sector was eyeing railways, defence and capital items, he stated: “The full demand from railways is estimated to be 4.50 lakh tonnes each year to five lakh tonnes each year, which is more likely to enhance by 8-10%. Equally, defence consumption might be about one lakh tonnes each year to 1.20 lakh tonnes each year, which is more likely to submit 15-20% development as a result of opening of this sector, he talked about.