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Brief Profile of Indian Foundry Industry

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.

There are approx 5000 units out of which 90% can be classified as MSMEs.

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.

General Economic Scenario

Govt. focusing on “MAKE IN INDIA”, “EASE OF DOING BUSINESS”, infrastructure & easing FDI norms to promote investments in manufacturing & new initiatives & cooperations in skill development

Forecasts of growth by leading institutions :-

India to become fastest growing economy >7.5% YoY as per forecasts of leading International Institutions.

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.

Auto Sector:

Auto ,Auto Components & Capital Goods Industry have drawn up ambition plans to grow three folds in next 10 years Which will drive the demand for metal casting industry .The Capital Goods Policy of Govt envisages the sector to grow from USD 35 Bn to USD 115 Bn Industry by 2025 .Whereas the auto sector as per Automotive Mission plan 2016-26 envisages auto sector to grow 3.5 to 4 times of the current value of USD 74 billion to USD 260 billion to 300 billion. Even if these plans are realized by 75-80% ,it will augur well for the Indian Foundry Industry .The casting demand for iron & Aluminium castings could grow by 35-40 % by 2019-20 from current levels

There is focus on infrastructure in India .Construction of roads & rural housing etc which will push demand fro earthmoving & allied equipment .Good monsoons augur well for agricultural sector which will drive demand for tractors .The tractor industry grew by 21% in 2016-17 compared to previous year after registering a decline of approx 6.5% in 2015- 16 compared to 2014-15

Total Production of Tractors in India :

FY 2014-15 FY 2015-16 FY 2016-17
612994 570791 691361

Auto industry grew at an average rate of 5 .4% in 2016-17 compared to previous year . The Society of Indian Automotive Manufacturers (SIAM) forecast a 7 to 9% growth for the domestic passenger vehicle sales in the financial year 2017-18, expecting support from 7th pay commission payout and better rabi output.

As Per SIAM, We are seeing an improvement in the economic growth and also consumer sentiment. Factors like lower borrowing costs, pent-up demand after demonetisation and a mild budgetary support to incomes will drive consumption growth in 2017-18,”

Global Scenerio:

As per 51th World casting Census published by Modern Castings USA in December 2017, Global Casting Production Stagnant. Worldwide casting production grew by less than half a percent for second year in a row in 2016.

In 2016, world casting production reached 104.4 million metric tons, a shade over the 104.1 million metric tons produced in 2015. The World’s top 10 casting producing nations produced 91.6 million metric tons of the total 104.4 million metric tons.

China reported a 5.4% increase since 2015 putting its total production at 47.2 million metric tons. India the second largest casting producers in the World reported 5.4% increase in production to 11.35 million metric tons. the remaining 2016 top 10 casting nations are USA, Japan, Germany, Russia, Korea, Mexico, Brazil and Italy

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 2016-17 are approx USD 2.33 billions.

Sectorwise consumption of Casting

Automobile Sector is major consumers of castings, Please see the Chart Below.

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