Industry Forecast Investment Casting in India for 2019 by Deepan M. Dave, Dynatecsales T


he year 2018 has been quite an eventful one, from banking frauds that have marred the sector to the


aviation industry reeling under huge losses. The soaring petrol rates and the fall in the Rupee also acted as major dampeners to the Indian economy. It also seems current regimes tax-and- spend model of development is failing to enthuse voters. Like the Indian economy in general, 2018 offered Indian investment casters both opportunities as well as some major challenges. The market for automotive components continues to be strong but has not demonstrated significant movement from 2017. Sales of castings serving general industry showed improvement over 2017 levels. Investment casting sales seem to have increased approximately 2 to 3% in 2018. Forecast for 2019 remains positive for all sectors.


Automotive India is expected to emerge as the world’s third-largest passenger-vehicle market by 2021. 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. Turbowheel sales continue to


increase and are a major factor in the growth of automotive castings. Whilst overall Indian automotive is performing well there are some significant differences being seen between individual manufacturers. The Indian investment casting industry, which although current gross production levels are far behind other Asian countries such as Japan, South Korea & China, it continues to improve production systems to support rising demand. 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 2018. The outlook for 2019 supports analyst projections with


22 ❘ January 2019 ®


India


Indian investment Casting market by various sectors are depicted in Figure 1 above.


foundries indicating that they expect market to be flat or slightly up. There is also an identified need for foundries to adapt to a much faster pace of change than in the past.


General Industrial, Commercial castings Forecasts suggest increased casting sales of 3 to 4% this year. Market conditions appear relatively stable at present and casting sales to the oil industry are marginally higher. Though some foundries are reporting a 15-25% improvement over 2017, manufacturers do not anticipate casting requirements to show significant growth, but growth is expected. Almost 80% of the Indian investment casting market produces general


industrial, commercial


investment castings. Overall, market growth in advancing subsectors offset declines in others, resulting in what the industry is currently estimating an approximate 2-3% growth over 2017 casting sales serving the general industrial sector in 2018. Further growth of 3-4% is anticipated in 2019. Casting sales remain extremely competitive and it is hoped that current growth levels can be maintained. There are approximately 200 investment casting foundries, primarily in the western part


of India. Alloys cast are carbon & low alloy steels, 400 series stainless steel, 300 series stainless steel, cobalt based alloys, nickel-based alloys. A lot of these general commercial investment castings are exported through various channels primarily in Europe & the US. Development of commercial investment casting foundries in India offers competition to neighboring nations. Foundries manufacturing medical devices saw rise in production levels.


Defense & Aerospace India is the third largest spender on defense in the world, after the United States and China. Growing focus on indigenous manufacturing and easing of FDI norms are likely to be the key driving factors. The government opened this sector to private and foreign investment. Further, it has sought to build a domestic industrial base and has set itself a challenging target of achieving 70% indigenization. To fully exploit this opportunity and fulfil offset obligations, original equipment manufacturers and their suppliers should leverage India’s competitive advantages in manufacturing and information technology by setting up units in India. Currently all investment casting foundries producing castings related to


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36