Forecast India Reports Growing Investment Casting Industry;


Export Sales to Be Up in First Half of 2011 by Deepan M. Dave DYNATEC SALES, Mumbai-India


In terms of purchasing power parity,


the Indian economy ranks the fourth larg- est in the world. It is crucial to understand that India is driven primarily by domestic (consumer) consumption. This stands in contrast to countries like Japan and Chi- na, which have followed the export-ori- ented model. With the massive growth of the Indian middle class, this vast country is becoming Asia’s major 'buy' economy. In 2009, India’s gross domestic prod-


uct stood at $3.548 trillion, and was the fourth largest economy by volume. The global economy seems to be recovering after the recent economic shock. The In- dian economy, however, was hit in the latter part of the global recession and the real economic growth witnessed a sharp fall followed by lower exports, lower capital outflow and corporate restructur- ing.


Investment casting foundries in India can be classified into three categories •


High-value-added foundries:


There are six or seven high-value added foundries in India making aerospace, energy, and marine components among others. Most of these foundries are gov- ernment owned and public sector organi- zations. •


owned foundries: About 15-18 commer- cial privately owned foundries in India– making mainly automotive, medical, defense and general engineering com- ponents– can be classified as higher end investment casting foundries. • Commercial privately owned


foundries: Approximately 200 foundries supply investment castings made from stainless steel, carbon steel, aluminum and cobalt-based alloys to the domestic as well as export markets. These are mainly industrial valves and pumps, general en- gineering, automotive, instruments and testing equipment, construction equip- ment, etc.


14 Sector wise Indian investment casting business January 2011


Aerospace: India is fast becoming a major global aerospace market, aided by a combination


Aerospace India is fast becoming a major global


aerospace market, aided by a combina- tion of increased defense spending, a booming commercial aviation market, and rising technological and manufactur- ing capabilities among local companies. Almost every major western aerospace firm has shown an interest in establishing a presence in India. Apart from govern- ment support, India’s advantages are its relatively lower labor costs, availability of talent, information technology capa- bility, and its location between the major markets in East Asia, the Middle East and Europe.


Production has increased significant-


ly with Aerospace components produc- ing investment casting foundries. Several private sector establishments are viewing this as a potential market.


Automotive Automotive parts constitute ap-


proximately 20% of the total investment castings in India. At present, India is the world’s largest tractor and three-wheel vehicle producer, second largest two-


High-end commercial privately


wheel vehicle producer, fourth largest commercial vehicle producer, and 11th largest passenger car producer An attractive outsourcing destina-


tion for global auto companies India's automobile industry is currently growing at a remarkable pace of around 18% per annum.


Carbon steel and stainless steel are


the main alloys in use by air-melt auto- motive investment casting foundries. Forecast for automotive investment


casting market would be about U.S. $100 million in 2011. About U.S. $80 million would be consumed for the domestic market. A few Indian investment casting foundries are now producing turbocharg- er castings. This market is expected to grow due to increased in demand from the world market.


Defense The defense sector constitutes about


22% of the total investment castings made in India. Along with the govern- ment-owned foundries, several privately owned investment casting foundries pro- duce various components for military ap- plications.


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