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India: To double the volume in the next five years a lot of efforts and investments are necessary
See the latest statements of IIF President K. Samaraj and Subodh Panchal, Kastwel Industries
1. Mr. Samaraj, India is the thrid biggest producer of metal castings with about 10.000.000 t/pa. Does this figure illustrate the real power of the Indian Foundry Industry?
The Indian Foundry Industry has shipped around 10 Million Tons of Castings in the year ended Mar 31st 2015. Yet the installed capacity is around 16 Million Tons. Realistically India can produce and ship around 14 Million tons of Castings per year. However, like in any Industry, the capacity is not Interchangeable, depending on the type of Metal and the Process. Thus there in general is Overcapacity at present, but it is not uniform overcapacity in all markets / processes.
The projected growth of the Indian Economy in the near future and the emphasis by the Government of India on manufacturing, with the “ Make in India “ program along with the increased share of Manufacturing in the GDP, calls for the Foundry Capacity to be doubled in the next decade,projected to be 30 Million Tons. This will ensure that India will have the second largest Foundry Industry globally !
2. What is the effect of "Make in India"?
In reality Make in India was already happening over the past decades, it is nothing new. But at present greater emphasis is being placed by the government on Manufacturing in India, for India and for the World ! Realizing the need to balance the GDP and its Growth in all fields like Agriculture, Manufacturing and Services, the government of India, is pushing for the share of manufacturing to grow from 9 % of GDP to 15 % of GDP, over the next decade. This growth is to be compounded with the projected average of 7 %annual growth in GDP for the next decade. In other words the projected demand for castings is expected to grow from the present 10 Million Tons to 30 Million Tons by 2025.
Of course, with respect to Skills and Development, this growth does not mean a simple 3 X growth in the employment in the Foundry Industry. With wide employment opportunities in the economy, the Indian Foundry Industry will have to face and overcome Skill and Employee availability issues. It cannot be the old formula of proportionate increase in employees commensurate with the increase in production. A combination of Technology, Automation, Productivity and Skilling is required to meet the demand. Efforts are underway by the Institute of Indian Foundrymen, as the Apex Foundry body in India, to impart Skills in the Shop Floor. The target is to train 10,000 shop floor employees per year from 2017. The major foundry’s in India, have their own Captive Training Institutions, In Foundry Clusters, Common Polytechnics are being set up. These efforts are in addition to the traditional Engineering Colleges, Training Institutes etc.
3. What´s about the current status of environmental standards and targets?
The Indian Foundry Industry being responsible and mature corporate citizens, by and large abide by the Environmental Norms as constituted by the various Governments. In addition, the rising expectations from Customers and Other Stake Holders including the local public, has made blatant violation of pollution norms rare. Further, in order to attract employees at all levels, pollution has to be in check. In other words, both Regulatory and Market Driven Forces are at play making Environmental Standards a self policed activity.
Reduce, Reuse and Recycle activities are being implemented as availability of Natural Resources like Sand are shrinking due to Policies and alternative Demands. The advanced Environmental Norms as practiced in the Developed Economies will become a standard in the coming years, requiring Capital Investments and increased Energy Costs.
4. What´s your personal motto in your term as President?
The Theme of the year for IIF is Nurturing Manufacturing. This theme is in consonance with the Make in India program of the Government of India.
Realizing, the need for Skill Development as imperative for the growth of the Foundry Industry, IIF has through its Center for Education and Training (CET), based out of Kolkota, is developing training modules, to train existing Shop Floor Workers in Foundry Practices. The courses will be introduced at the upcoming 64th IFC at Coimbatore. The courses will be available in six Indian Languages and the target is to train 1000 Workers in 2016, 5000 Workers in 2017 and 10,000 Workers per Year thereafter. All this is to be made available at a Nominal Cost. IIF, as an Industry Body is developing and providing this training with substantial initial investment.
IIF is continuing with the best practices of my predecessors, including Policy Advocacy with the Government of India. Due to this continued activity the Government of India, has recognized the importance of the Foundry Industry for the Manufacturing Sector and has formed the Foundry Development Council, to deliberate on issues concerning the Foundry Industry and recommend suitable interventions. IIF is also conducting National Level CEO meets for the Foundry Industry, giving a Forum for the captains of industry to interact.
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