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07 May 2012
BRIGHT FUTURE OF INDIAN FOUNDRY |
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The latest statistic shows that India is the world number four casting producer. They are also the world's second fastest growing auto market and boasts of the sixth largest automobile industry after China, the US, Germany, Japan and Brazil.
The foundries in India have approximately 4,500 foundries, it could be segmented in type, which the small foundry is the biggest among them, remaining are the medium and large scale. There are various types of castings, which are comprised of ferrous, non ferrous, Aluminium Alloy, graded cast iron, ductile iron,Steel etc. The grey cast iron could count for 70% of the total foundry, approximately 32% of them are served to the automotive industry.
Raw material & Energy
India has abundant source of raw materials to serve the foundries as well as the green energy.
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Labour
Foundry industry is labor intensive and labor costs in India are some of the lowest in the world. Fresh engineering graduate from tier I & II institute can be hired at US$ 6,000 per annum while unskilled and semi-skilled labor costs as low as USD 100 per month. Also construting and registering new casting facilities are quicker and cost effective. Regulations governing Environment, Health and Safety for foundries are nearly non-existent, and cost of dies and tooling are significantly lower than in developed countries, although tooling quality may not be as good. |
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Weak point
India still have insufficient infrastructure to serve the investor such as route of transportation etc. |
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