Industry Forecast Investment Casting Industry in India by Deepan M. Dave, Dynatecsales


ndia in 2017 was a year of many firsts- tax overhaul, systemic changes and slowdown. Like the Indian economy in general, 2017 offered Indian investment casters both opportunities as well as some major challenges. The commercial oil & gas, industrial equipment and pumps and valves sectors has suffered contractions. Investment casting sales seem to have increased approximately 2 to 3% in 2017. Forecast for 2018 remains positive for all sectors. Indian investment Casting market


I


by various sectors are depicted in Figure 1.


Automotive The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country’s Gross Domestic Product. In order to keep up with the growing demand, several auto makers have started investing heavily in various segments of the industry during the last few years. The automobile industry is supported by various factors such as availability of skilled labor at low cost, robust R&D centers and lower cost steel production. Turbocharger wheels are & will remain a large target part for


investment casting foundries in India. These components offering an effective improvement in fuel consumption and emission control, demand for such parts is on the rise prompting certain investment casting foundries to exclusively focus on turbocharger wheel castings production. Although gross production levels are yet far behind other Asian countries such as Japan, South Korea & China. In


consideration of the various


Indian foundries, their relative size and reports of growth levels, it can be estimated that Indian automotive industry investment casting sales grew estimated 2% in 2017. Most of these foundries believe they will see 2 to 3% growth levels in 2018.


Indian forecast of IC sales for 2018 by commodity are depicted in Figure 2.


General Industrial, Commercial castings This segment typically follows Indian economy, and it is not surprising that overall business activity has slowed considerably. Casting sales remain extremely competitive and it is hoped that current growth levels can be maintained. The oil and gas business segment has suffered staggering contractions. A large percentage of


the world’s oil rigs are either not in operation or producing below capacity levels which has resulted in a decline in commercial casting sales. Foundries are taking


the pragmatic


view that oil and gas production, and thus investment casting foundries sales serving this sector, will have plateau period in 2018. Pump and valve production is low by several percentage and Indian sales of investment castings to the heavy equipment sector has downsized. Almost 80% of the Indian investment casting market produces general industrial, commercial investment castings. Overall sales pattern indicates some regions performing better


than others with


variation from foundry to foundry. A lot of these general commercial investment castings are exported through various channels primarily in Europe & US. Development of commercial investment casting foundries in India offers competition to foundries in other Asian countries. Foundries are trying to


improve their Defense & Aerospace


Indian defense & aerospace industry seems to be at a turning point. In the


capabilities by


introducing modern equipment and raw materials.


India


20 ❘ January 2018 ®


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