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Foundry Market India

June 2014

Executive Summary

Market

Foundry market in India registered production of x mn metric tons of castings in 2012-13

In 2012-13, India was the worlds third largest producer of castings and also one of the top 10 in terms of
average production per plant
India currently has over y foundries in the small, medium and large scale sectors with around z units having
international quality accreditation
Foundry industry is a major feeder to various sectors, automobile sector accounting for the largest share

Drivers

Drivers &
Challenges

Future Outlook

Challenges

Growing Automotive Industry

Growth in Other End-User Segments
Growth in MSME Sector
Supportive Government participation
Low Cost of Labor
Improving Technology and Modernization

Market Constraints
Rising Input Costs
Low Capacity Utilization

Vision Plan 2020 for Foundry Industry Initiated by The Institute of Indian Foundrymen (IIF) to recommend
initiatives for strong growth and help India emerge as a leading supplier of quality castings to the global
market by 2020
Vision Plan 2020 Interventions In order to realize the Vision Plan 2020, various interventions are required
which aims to benefit the entire value chain and ensure balanced growth of the foundry sector
Major Players

Competition

Player 1

Player 2

Player 3

Player 4

Player 5

Player 6

FOUNDRY MARKET IN INDIA 2014.PPT

Macroeconomic Indicators
Introduction
Market Overview
Foundry Clusters
Export-Import
Drivers & Challenges
Competition
Future Outlook
Strategic Recommendations
Appendix
FOUNDRY MARKET IN INDIA 2014.PPT

Economic Indicators (1/3)

GDP at Factor Cost: Quarterly
INR tn

Q1

Q2
2010-11

2011-12

Q3
2013-14

2012-13

Q4

Inflation Rate: Monthly

%

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

FOUNDRY MARKET IN INDIA 2014.PPT

Nov 2013 - Dec 2013

Macroeconomic Indicators
Introduction
Market Overview
Foundry Clusters
Export-Import
Drivers & Challenges
Competition
Future Outlook
Strategic Recommendations
Appendix
FOUNDRY MARKET IN INDIA 2014.PPT

Types of Casting Processes

Casting Processes

Expendable Moulds

Permanent Moulds

Text

Text

Text

Special Processes

Text

Text

Expendable Pattern

Text
Text

Text

Text

Text

Text

Permanent Pattern

Text

Text

Text

Text

FOUNDRY MARKET IN INDIA 2014.PPT

Macroeconomic Indicators
Introduction
Market Overview
Foundry Clusters
Export-Import
Drivers & Challenges
Competition
Future Outlook
Strategic Recommendations
Appendix
FOUNDRY MARKET IN INDIA 2014.PPT

Global foundry market has witnessed a steady recovery

from the loss of production owing to global economic crisis
Global Foundry Market Overview
In 2011, the global casting production had finally managed to exceed the pre-2008 level (X mn MT in 2007) signifying
the recovery of the metal casting industry from the economic downturn
Industry had witnessed a sharp decline in casting production in 2009 and took two years to reach the pre recession figures

In 2012, casting production increased to more than Y mn MT, up by A% y-o-y which clearly implies the continued
upward trend in worldwide production
The worlds two largest casting producers, China and United States, increased their production by Z1 mn MT and Z2 mn
MT respectively
However, majority of the countries reported decline in annual production volume over 2011
Casting production dipped by C% y-o-y in Brazil, which is among the top producing countries
Finland, Italy, Norway, Pakistan, South Africa, Switzerland and Taiwan also experienced double digit contraction during 2012

Global Production of Castings

mn MT
B2%

B1%

2007

2008

2009

2010

2011

2012
MT refers to metric tons

FOUNDRY MARKET IN INDIA 2014.PPT

Out of the top 10 countries, production figures for only

China, United States and Korea are higher than that of 2011
Global Top 10 Casting Producing Countries (2012)
Text

Gray Iron

mn MT

Ductile Iron

Steel

Malleable Iron

Non-Ferrous
*2011 data
**Includes compacted graphite iron
***Includes malleable iron

China

United States

India

Japan

Germany

Russia*

Brazil

Korea

Italy
Improved

Note: India casting production figure is for the financial year 2012-13
FOUNDRY MARKET IN INDIA 2014.PPT

France
Decline

Foundry market is growing consistently in India and it is the

third largest producer of castings in the world
Domestic Foundry Market Overview (1/2)
India ranks second in the world based on the number of registered foundry units (X) after China and third in terms of
total production (Y mn MT), preceded by China and United States
INR M bn Indian foundry industry is labor intensive and employs around R1 mn persons directly and another R2 mn
indirectly
Production of castings in India took a dip in 2008-09 due to the global crisis, but has recovered with strong growth
(B1% CAGR) during 2009-13
Indias share in the overall global casting production was P% in 2012-13
Foundry market in India is expected to reach ~INR Q bn by 2016-17 backed by healthy growth in the automotive,
construction, mining and earthmoving equipment, railway, steel plant and farm equipment industries

Production of Castings India

mn MT
B2%
B1%

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13 2013-14e 2014-15e 2015-16e 2016-17e 2017-18e 2018-19e

FOUNDRY MARKET IN INDIA 2014.PPT

10

Foundry market in India supplies castings to various other

sectors
Sector-wise Consumption of Castings (2011)
Text

Automobile

Power

Sanitary

Valves

Pipes and Fittings

Diesel Engines

Agricultural Machinery

Electrical Equipment

Industrial Machinery

Earthmoving

Railways

Machine Tools

Pumps and Compressors

Others

With growing demand from the automobile and engineering sectors coupled with Indias rapidly growing
economy, the foundry market is expected to grow strongly in the near future
FOUNDRY MARKET IN INDIA 2014.PPT

11

Macroeconomic Indicators
Introduction
Market Overview
Foundry Clusters
Export-Import
Drivers & Challenges
Competition
Future Outlook
Strategic Recommendations
Appendix
FOUNDRY MARKET IN INDIA 2014.PPT

12

Major Foundry Clusters in India (5/7)

Foundry Cluster: Rajkot
Text

Production
Turnover

INR c bn (2011-12)

Employment

d people (2011-12)

Export

Challenges

~a mn tonnes per annum

Text

INR e bn (2011-12) to US, UK, Nigeria, Middle

East, Germany

Sector-wise Consumption of Castings

Foundry Units Type-wise Segmentation

Oil engines

Micro

Automotive/textile

Small

Machine tools

Medium

Pumps/valves
Others
Others

FOUNDRY MARKET IN INDIA 2014.PPT

13

Macroeconomic Indicators
Introduction
Market Overview
Foundry Clusters
Export-Import
Drivers & Challenges
Competition
Future Outlook
Strategic Recommendations
Appendix
FOUNDRY MARKET IN INDIA 2014.PPT

14

India has witnessed a steep rise in export of casting

products during 2009-10 to 2012-13
Exports (Product-wise)
Tubes, pipes and hollow profiles, of cast iron
Other cast articles of iron or steel
INR bn
A%

2009-10

2010-11

2011-12

Country-Wise Segmentation for Tubes, pipes and hollow

profiles, of cast iron (2012-13)

2012-13

2013-14*

Country-Wise Segmentation for Other cast articles of

iron or steel (2012-13)

U ARAB EMTS

USA

OMAN

GERMANY

ALGERIA

UK

SPAIN

SOUTH AFRICA

SRI LANKA DSR

U ARAB EMTS

OTHERS

OTHERS

*For the period Apr-Jan

FOUNDRY MARKET IN INDIA 2014.PPT

15

Macroeconomic Indicators
Introduction
Market Overview
Foundry Clusters
Export-Import
Drivers & Challenges
Competition
Future Outlook
Strategic Recommendations
Appendix
FOUNDRY MARKET IN INDIA 2014.PPT

16

Drivers & Challenges Summary

Drivers
Growing Automotive Industry

Challenges

Growth in Other End-User Segments

Market Constraints

Growth in MSME Sector

Rising Input Costs

Supportive Government Participation

Low Capacity Utilization

Low Cost of Labor

Improving Technology and
Modernization

FOUNDRY MARKET IN INDIA 2014.PPT

17

Growth in Other End-User Segments (5/14)

Industrial Equipment
Text

Industry Share in GDP Segment-wise

Construction Equipment Market Size & Growth

Manufacturing

Construction

Electricity, gas and water supply

Mining and quarrying

INR bn

A%

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2013

FOUNDRY MARKET IN INDIA 2014.PPT

2014e

2015e

2016e

2017e

2018e
18

Foundry market in India will be aided by the strong growth

of the MSME sector
Growth in MSME Sector

Impact

Text

Strong growth of the MSME sector will facilitate the development of the foundry market in India
Number of Enterprises
mn

mn units

Gross Output

Employment
INR tr

A%

B%

C%

2007-08 2008-09 2009-10 2010-11 2011-12

2007-08 2008-09 2009-10 2010-11 2011-12

2007-08 2008-09 2009-10 2010-11 2011-12

Note: Projected data for the years 2007-08 to 2011-12

FOUNDRY MARKET IN INDIA 2014.PPT

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Macroeconomic Indicators
Introduction
Market Overview
Foundry Clusters
Export-Import
Drivers & Challenges
Competition
Future Outlook
Strategic Recommendations
Appendix
FOUNDRY MARKET IN INDIA 2014.PPT

20

Porters Five Forces Analysis

Threat of New Entrants

Impact
Text

Text

Impact
Text

Impact
Text

Competitive Rivalry

Bargaining Power of Suppliers

Text

Impact
Text

Bargaining Power of Buyers

Text

Text

Impact
Text
Threat of Substitutes
Text

FOUNDRY MARKET IN INDIA 2014.PPT

21

Competitive Benchmarking (1/5)

Public Trading Comparables (FY 2014)
Player 1

Player 2

Player 3

Player 4

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (INR mn)

EV/Revenue (INR mn)

PE Ratio

Note: Market Capitalization, Share Price and PE ratio is as of 3rdJun 2014

FOUNDRY MARKET IN INDIA 2014.PPT

22

Competitive Benchmarking (2/5)

Key Ratios of Major 3 Public Companies Operational Basis (FY 2013) (1/3)
Operating Margin

Player 1

Net Margin

Player 2

Player 3

Text

FOUNDRY MARKET IN INDIA 2014.PPT

23

Public: Domestic Company Player 1

(1/5)
Company Information

Offices and Centres India

Corporate Address
Tel No.

Fax No.

Website
Year of Incorporation
Ticker Symbol

Stock Exchange

Head Office

Products and Services

Category

Products/Services

Key People
Name

Designation

Note: The list of products and services is not exhaustive

FOUNDRY MARKET IN INDIA 2014.PPT

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Public: Domestic Company Player 1

(2/5)
Financial Snapshot
Total Income

Key Ratios
Net Profit/Loss

INR mn

INR mn

Particulars

y-o-y change
(2014-13)

2014

2013

2012

2011

Profitability Ratios

2011

2012

2013

2014

Financial Summary

Cost Ratios

The company incurred a net loss of INR -- mn in FY 2014, as

compared to net loss of INR -- mn in FY 2013
The company reported total income of INR -- mn in FY 2014,
registering an increase of -- per cent over FY 2013
The company earned an operating margin of -- per cent in FY 2014,
an increase of -- percentage points over FY 2013

The company reported debt to equity ratio of -- in FY 2014, an

increase of -- per cent over FY 2013

Key Financial Performance Indicators

Indicators
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)

Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Value (06/06/2014)

.
.

Operating costs (% of Sales)

Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

FOUNDRY MARKET IN INDIA 2014.PPT

Decline

25

Public: Domestic Company Player 1

(3/5)
Key Business Segments

Key Geographic Segments

Pipes

India

Foreign

2011

2012

Text

2014

2010

2013

Key Recent Developments (1/2)

Description

News

Overview

Text

Clientele

Text

Note: Business Segments and Geographic Segments are based on total revenues; Geographic segments were available for latest 2013
FOUNDRY MARKET IN INDIA 2014.PPT

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Public: Domestic Company Player 1

(4/5)
Key Recent Developments (2/2)
Description

News

Manufacturing Facilities

Text

Research and
Development

Text

Q4 2013-14

Text

FOUNDRY MARKET IN INDIA 2014.PPT

27

Public: Domestic Company Player 1

(5/5)

Text

Text

Text

Text

FOUNDRY MARKET IN INDIA 2014.PPT

28

Private: Domestic Company Player 2 (1/5)

Company Information

Offices and Centres India

Corporate Address

Tel No.

Fax No.

Website
Year of Incorporation

Head Office

Products and Services

Category

Products/Services

Key People
Name

Designation

Note: The list of products and services is not exhaustive

FOUNDRY MARKET IN INDIA 2014.PPT

29

Private: Domestic Company Player 2 (2/5)

Shareholders of the Company
Name

Ownership Structure
No. of Shares held

Directors or relatives of directors

Corporate Bodies
Other top 50 shareholders

Total

Note: Shareholding pattern as on AGM dated 29th Sep 2013

FOUNDRY MARKET IN INDIA 2014.PPT

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Private: Domestic Company Player 2 (3/5)

Financial Snapshot
Total Income

Key Ratios
Particulars

Net Profit/Loss

INR mn

INR mn

2010

2011

2012

2013

Financial Summary
The company incurred a net profit of INR -- mn in FY 2013, as
compared to net profit of INR -- mn in FY 2012
The company reported total income of INR -- mn in FY 2013,
registering a decrease of -- per cent over FY 2012
The company earned an operating margin of -- per cent in FY
2013 a decrease of -- percentage points over FY 2012
The company reported debt to equity ratio of -- in FY 2013, a
decrease of -- per cent over FY 2012

y-o-y change
(2013-12)

2013

2012

2011

2010

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

FOUNDRY MARKET IN INDIA 2014.PPT

Decline

31

Private: Domestic Company Player 2 (4/5)

Key Recent Developments
Description

News

Overview

Text

Manufacturing Plants

Text

Certifications

Text

Awards

Text

FOUNDRY MARKET IN INDIA 2014.PPT

32

Private: Domestic Company Player 2 (5/5)

Text

Text

Text

Text

FOUNDRY MARKET IN INDIA 2014.PPT

33

Macroeconomic Indicators
Introduction
Market Overview
Foundry Clusters
Export-Import
Drivers & Challenges
Competition
Future Outlook
Strategic Recommendations
Appendix
FOUNDRY MARKET IN INDIA 2014.PPT

34

In order to realise the Vision Plan 2020, various

interventions are required...
India Foundry Mission Vision Plan 2020
An Implementing Agency for the India Foundry Mission (IFM) will have full authority to represent, demonstrate the pilots
and implement the various recommendations and professionally monitor the growth
It will have a predetermined lifespan of 5 years and will create and strengthen the vehicles to take on the growth thereafter

Vision Plan 2020 Interventions

Technology
Upgradation Fund

Text

Capacity
Consolidation

Text

New Capacity
Creation

Text

Green Foundry
Initiative

Text

Better facilities

Text

FOUNDRY MARKET IN INDIA 2014.PPT

35

Thank you for the attention

Foundry Market India report is part of Netscribes Manufacturing Series.
For any queries or customized research requirements, contact us at:
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FOUNDRY MARKET IN INDIA 2014.PPT

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