The automobile sector is a major consumer of castings produced in India. Currently, there are around 4,500 foundry units in the small, medium and large-scale sector. Out of these, 1500 units have international quality accreditation. Read More: https://bit.ly/2T9nh71 #marketresearch #marketreserachreport #foundrymarket #business

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Executive summary
Socio-economic indicators
Table of contents
Introduction
Global foundry market overview
India foundry market overview
India foundry market segmentation
Trade analysis
Market influencers
Government initiatives
Growth in other end-user segment
Competitive landscape
Appendix

3. Executive summary
Overview
Government
initiatives
2016 2018 2023
INR Bn
• Currently, India is the second largest producer of castings after China, producing ~x Mn tonnes of castings in 2018
• Production of castings is expected to reach a volume of x Mn tonnes by 2023, expanding at a compound annual growth rate
(CAGR) of ~x% from 2018
• Some of the notable companies in the foundry industry producing metal castings in India include Electrosteel Castings Ltd.,
Hinduja Foundries Ltd., Nelcast Ltd., and Tata Metaliks Ltd., among others
• xx
• Foundries across India are upgrading themselves with regard to facilities and technology to improve productivity
• The majority of the foundry units fall under the micro, small and medium enterprises (MSME), and this sector has registered
consistent growth over the years
• xx
• A Vision Plan 2020 has been launched by the Institute of Indian Foundrymen (IIF) for recommending the initiatives required to
develop India as a leading supplier of quality castings in the global market by 2020
• An implementing agency has been set up for the India Foundry Mission (IFM) to represent the market players, demonstrate the
pilots, and implement various recommendations, as well as professionally monitor the overall market growth
• xx
• Most of the foundries in India fall under small and medium enterprises (SMEs), which cannot afford the high costs of technologically advanced
equipment or automation
• Inability to outgrow the domestic demand for castings, and supply quality products to the global market acts as a huge barrier for the industry to
grow further
• xx
3

4. Socio-economic indicators
Total population
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Bn
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Personpersq.km
Population density
4

5. • The Indian foundry industry produces various types of metal castings and cast components for use in the power, automotive, defense, railways, machine tools, agro machinery,
tractor, earth-moving and mining machinery, electrical machinery, and oil and natural gas industries, among others
• xx
Market definition and structure
Melting Casting Finishing
• Melting is performed in
specialized furnaces
• xx
• Finishing involves grinding or
sanding the component
• xx
• xx
• xx
• xx
Foundry process flow
5

6. Types of casting processes
Casting processes
xx xx xx
xx xx
xx
xx xx xx
xx xx
Permanent pattern
Expendable pattern
xx xx xx
xx xx
xx xx
6

7. • The growth in production of light vehicles is expected to increase the demand for new cast metal parts in the global market
 It is also expected to enhance the rate of replacement of old metal casting products with more energy efficient metal casting solutions
• Although, global casting production has increased in the last five years, the number of manufacturing units have declined substantially
 This implies that the metal castings businesses are getting more consolidated, along with increasing efficiency
Key
observations
• In 2017, the global castings production witnessed an increase of ~x% from 2016 and reached a value of ~x Mn tonnes
• Based on the total output, Russia had the highest growth in 2017, with an increase of x% in production from 2016
• China increased its total castings production by x Mn tonnes, to a total of x Mn tonnes in 2017
Global foundry market overview
Top 10 casting producing countries (per plant comparison)
China India United States Japan Germany Russia Korea Brazil Italy France
MT
Top casting producing countries
China India United States Japan Germany Russia Korea Mexico Brazil Italy
MT
7

8. 2016 2017 2018
MnMT
• The Indian foundry or metal casting industry is a key component feeder for various sectors such as the automobile, auto components, railways, agro
machinery, tractors, textile, electrical machinery, earth-moving machinery, power equipment, defense equipment, and aero and space industry
• Production of castings reached a value of x Mn MT in 2018, and is expected to reach a value of x Mn MT by 2023, expanding at a CAGR of ~ x % from 2019
Key
observations
• Based on volume, India is the second largest manufacturer of metal castings, globally, after China, producing ~x Mn tonnes of castings in various metals such as grey iron,
ductile iron, steel and aluminum alloys for various applications
• The Indian foundry market was valued at INR x Bn in 2018
• Currently, x foundries operate in India, which fall under small, medium and large scale enterprises
• The major players in the casting industry include Electrosteel Castings Ltd., Hinduja Foundries Ltd., Nelcast Ltd., and Tata Metaliks Ltd., among others
Foundry market in India - overview
2019e 2020e 2021e 2022e 2023e
MnMT
India historical market (based on volume)
India forecasted market (based on volume)
CAGR (2016-2018): x% CAGR (2019-2023): x%
Productionofcastings
8

9. Segments
Based on products
• Gray Iron
• Ductile Iron
• Malleable Iron
• Steel
• Copper Base
• Aluminum
• Others
• Grey iron, ductile iron, malleable iron, steel, copper base, and aluminum are the major types of castings produced in India
• Products of the Indian foundry market find usage in almost all major industries across the country
 The sectors in which castings are used include automobile, sanitary wares, pipes and fittings, agricultural machinery, railways, pumps and compressors, power, valves, diesel engines, electrical
equipment, etc.
• Automobile
• Sanitary ware
• Pipes and fittings
• Agricultural machinery
• Others
Based on sectors
FoundrymarketinIndia
Market segmentation
9

10. Automobile
Sanitary ware
Pipes and fittings
Agricultural machinery
Others
Market segmentation - continued
• In the overall Indian foundry market, production of iron castings is the highest
 Production of gray iron castings is the highest in India, followed by ductile iron castings, and malleable iron castings
• Around x% of castings produced in India are consumed by the automobile sector
 As of 2018, aluminum castings contributed to nearly x% of the total production
• Due to a shift in the demand for lighter casting materials for manufacturing fuel-efficient automobiles and electronic vehicles (EVs), the share of aluminum
castings is expected to increase in the overall foundry market
Key observations
2017
Based on castings production Based on castings consumption
Gray iron
Ductile iron
Malleable iron
Steel
Copper base
Aluminum
Others
2017
10

11. Export: HS code
2015 2016 2017 2018
Export (value)
2015 2016 2017 2018
Export (volume)
11

12. Export segmentation: HS code
Country-wise segmentation (based on value)
Country A
Country B
Country C
Country D
Country E
Country F
2017
Country A
Country B
Country C
Country D
Country E
Country F
2018
Country-wise segmentation (based on volume)
Country A
Country B
Country C
Country D
Country E
Country F
Country A
Country B
Country C
Country D
Country E
Country F
2017 2018
12

13. Import: HS code
2015 2016 2017 2018
Import (value)
2015 2016 2017 2018
Import (volume)
13

14. Import segmentation: HS code
Country-wise segmentation (based on value)
Country A
Country B
Country C
Country D
Country E
Country F
2017
Country A
Country B
Country C
Country D
Country E
Country F
2018
Country-wise segmentation (based on volume)
Country A
Country B
Country C
Country D
Country E
Country F
Country A
Country B
Country C
Country D
Country E
Country F
2017 2018
14

15. Market drivers
• Foundries across India are upgrading themselves with regard to facilities and technology
to improve productivity
• Elaborate quality management systems and application of information technology (IT) for
manufacturing, metal solidification, and mold flow simulation are finding their application
in modern foundries
• xx
01
Upgradation of technology in foundries
• The majority of the foundry units operating in India fall under the MSME sector, registering
consistent growth over the years
• Till 2018, close to 1,000 clusters and 170 infrastructure development programs have been
initiated by the Indian government to promote the growth of the MSME sector
• xx
02
Growing MSME sector
15

16. • Most manufacturing units in India fall under SMEs, which cannot afford the high costs of
technologically advanced equipment or automation
• The inability to meet the domestic demand for castings and to supply quality products to the global
market acts as a huge barrier for the industry to grow further
• xx
• Increase in the cost of raw materials has resulted in the rise of production costs
• Moreover, recovery of the cost of raw materials is very difficult for foundry owners, since
most business contracts are long-term, without any clause for price adjustments
• xx
02
01
Market constraints
Increasing cost of raw materials
Market challenges
16

17. • Foundry market is directly linked with the development of the overall automotive sector
 Growth in the automobile industry is expected to generate huge demand for casting producers
• Rapid growth of the automotive sector has led to the steady development of other subsidiary industries like the auto component industry, indicating huge demand for castings
• Demand for commercial vehicles in India is increasing considerably due to the development of highways and roadways
• Favourable government policies like lower excise duties, automotive mission plans, the constitution of the National Electric Mobility Mission Plan 2020 (NEMMP), and Faster
Adoption and Manufacturing of Hybrid land Electric Vehicle (FAME), are also driving the growth of the market in India
• xx
Key observations
Total automobile production Growth in auto component turnover
FY 2015 FY 2016 FY 2017
Passenger vehicle Commercial vehicle Three wheelers Two wheelers
CAGR (FY 2014- FY 2017): x%
FY 2014 FY 2015 FY 2016 FY 2017
INRBn
Growth in other end user segments - automotive
17

18. Public: domestic company – company A
Company information
Products and services
Corporate address xx
Tel no. xx
Fax no. xx
Website xx
Year of incorporation Xx
Stock exchange : ticker xx
Key people
Name Designation
Person 1 xx
Person 2 xx
Person 3 xx
Person 4 xx
Business description
• xx
Category Products and services
Category 1 xx
Category 2 xx
18

19. Financial snapshot
2015 2016 2017 2018
Particulars FY 2015 FY 2016 FY 2017 FY 2018
Profitability ratios
Gross margin % xx xx xx xx
Net income margin % xx xx xx xx
EBITDA margin % xx xx xx xx
EBITA margin % xx xx xx xx
EBIT margin % xx xx xx xx
Return on assets % xx xx xx xx
Return on capital % xx xx xx xx
Return on equity % xx xx xx xx
Return on common equity % xx xx xx xx
Liquidity ratios xx xx xx xx
Current ratio xx xx xx xx
Quick ratio xx xx xx xx
Leverage ratios xx xx xx xx
Total debt/equity xx xx xx xx
Total debt/capital xx xx xx xx
Interest coverage xx xx xx xx
Efficiency ratios xx xx xx xx
Total asset turnover xx xx xx xx
Fixed asset turnover xx xx xx xx
Accounts receivable turnover xx xx xx xx
Inventory turnover xx xx xx xx
Key ratios
Indicators Value
Market capitalization (INR Mn) xx
Total enterprise value (INR Mn) xx
Key financial performance indicators
Public: domestic company – company A (continued)
19

20. Key business segments Key geographical segments
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Country A
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Segment 1
Company A
has been operating solely in the
business of segment 1 for the last four
years
Company A
has been operating solely in country A
for the last four years
Public: domestic company – company A (continued)
20

21. Company information
Products and services
Corporate address xx
Tel no. xx
Fax no. xx
Website xx
Year of incorporation Xx
Key people
Name Designation
Person 1 xx
Person 2 xx
Person 3 xx
Person 4 xx
Business description
• xx
Category Products and services
Category 1 xx
Category 2 xx
Private: domestic company – company B (continued)
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22. Appendix
Research methodology
Secondary research
Print media
Annual reports
of companies
Leading
newspapers
Magazines and
journals
Open sources
Company
website
Premium
databases
Electronic
media
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accounts, directories, press articles from around the world and online databases. The effect of macroeconomic and demographic factors influencing consumer spending patterns have
been considered while analyzing the current market dynamics and predicting growth forecasts.
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23. Appendix
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