IBAC – MATRIX IRON

FOUNDRY
Founder-Director Mr. Suresh Prasad Jaiswal and Mr. Adarsh Jaiswal., Matrix Iron
Foundry, West Bengal

MATRIX IRON FOUNDRY

BENORI KNOWLEDGE SOLUTIONS

for
West Bengal Export Promotion Program
Market Readiness Report

The purpose of this Market Readiness Report is to present the results of a high-level assessment of
the potential commercial viability of the subject product(s). As such, this report presents an overview
of the conditions in relevant markets (primarily the Indian market), opportunities to commercialize the
product(s) in these markets, issues the product may face in gaining market access, and where
possible, suggestions for facing these issues. As a high-level assessment, it does not contain the
depth of detail that is required to build detailed business plans, business models and product
development strategies. However, the report will substantiate what is determined by the research to
be the most viable course for launching the subject product in selected export markets. It will also
identify potential partners, customers and other resources that can be engaged for commercialization.

12 July 2019
 Matrix Iron Foundry

Table of Contents
1. EXECUTIVE SUMMARY ..................................................................................................................................... 3
1.1 RESEARCH FINDINGS.................................................................................................................................................3
1.2 CONCLUSIONS ........................................................................................................... ERROR! BOOKMARK NOT DEFINED.
2. PRODUCT OVERVIEW ....................................................................................................................................... 6
2.1 DETAILED DESCRIPTION .............................................................................................................................................6
Products for success .................................................................................................. Error! Bookmark not defined.
2.2 TECHNOLOGY USED ..................................................................................................................................................7
2.3 APPLICATION AREAS .................................................................................................................................................9
3. COMPANY’S SWOT ANALYSIS......................................................................................................................... 10
3.1 STRENGTHS...........................................................................................................................................................10
3.2 WEAKNESSES ........................................................................................................................................................10
3.3 OPPORTUNITIES .....................................................................................................................................................11
3.4 THREATS ..............................................................................................................................................................11
4. MARKET OVERVIEW ....................................................................................................................................... 11
4.1 INDIAN MARKET ....................................................................................................................................................12
4.1.1 Market Size and Growth ..........................................................................................................................12
4.1.2 List of top providers .................................................................................................................................13
4.1.3 Analysis of Product Demand....................................................................................................................13
4.1.4 Import and Export Trends ........................................................................................................................14
4.2 INTERNATIONAL MARKET ........................................................................................................................................14
4.2.1 Market Size and Growth ..........................................................................................................................14
4.2.2 List of top providers .................................................................................................................................15
5. COMPETITIVE LANDSCAPE ............................................................................................................................. 15
5.1 TOP PROVIDERS IN INDIA .........................................................................................................................................15
5.2 ANALYSIS OF MARKET SHARE ...................................................................................................................................15
5.3 INDUSTRIES WITH PRODUCT DEMAND ........................................................................................................................15
5.3.1 Top companies using this product ...........................................................................................................16
5.4 SEGMENTATION OF PRODUCT DEMAND .....................................................................................................................17
6. VALUE CHAIN ANALYSIS ................................................................................................................................. 18
7. RISKS AND BARRIERS TO GROWTH ................................................................................................................ 20
8. APPENDIX ...................................................................................................................................................... 21
8.1 INTERVIEW NOTES .................................................................................................................................................21
8.2 LIST OF POTENTIAL CLIENT .......................................................................................................................................27
 Matrix Iron Foundry

1. Executive Summary
1.1 Research Findings
Besides the economic perspective, foundry companies in India play a very significant role in terms
of industrial production and employment generation. Foundries use two main kinds of melting
furnaces. One is the coke-based melting furnace, called cupola. The other is the induction furnace,
which uses electricity.

Energy is one of the most important inputs in foundry industry. It constitutes about 12 to 15% of
the total cost of production. Hence, optimal utilization of energy is vital for the profitability of
foundry’s operation. However, majority of small-scale foundries in India use outdated, low
efficiency cupolas that generates various harmful emissions. In the last few decades public
awareness about dangers of air pollution has increased. In this scenario, induction furnaces have
paved its way to meet the increasing demand of foundry products

In addition to this, the steady growth in India’s economy-particularly in sectors like infrastructure
and automobiles offers opportunities as well as challenges to foundry industry in India. In order to
meet the increasing demand for high-value castings and overcome competition from emerging
players, the foundries are expected to find ways to cut down process costs and improve their
product quality. The need for foundries to cut costs has become particularly important in recent
years with frequent hikes in the prices of key foundry inputs.

An induction furnace is an electrical furnace in which heat is applied by the induction heating of
metal. The induction furnace employs a clean, energy-efficient and well-controllable melting
process. The superior characteristics of this type of furnace triggers many iron foundries to replace
cupola with it to melt cast iron, as the former emit lots of dust and other pollutants. The capacity of
induction furnace ranges from less than one kilogram to one hundred tones. Since no arc or
combustion is used, the temperature of the material is no higher than that is required to melt it.
This characteristic prevents the loss of valuable alloying element.
 Matrix Iron Foundry

Despite its various benefits, utilization of induction furnace is exposed to several hurdles in India.
The government have imposed several restrictions on power usage and operational time, thereby
cubing the production capacity of the foundries. Apart from this, the sustainability of foundry
industries is continuously threatened by fluctuating prices of the raw materials and regulations
imposed by the government. Consequently, the industry is losing its competitiveness to other
countries. Thus, government needs to set out clear standards for the industry to help companies
compete successfully.

1.2 Conclusion and Recommendations

The foundry industry in India is anticipated to grow manifolds with firm support from government
policies and initiatives. Domestic market of foundry sector in India is dominated by cupola
furnace. But with increasing emphasis on adopting environment friendly practices, companies are
continuously integrating induction furnaces into their existing operations for maximizing returns.
However, despite its immense potential large companies in India has not been able to seize the
opportunity completely to be able to become a truly global player in the industry. The Indian
companies including the White Iron Foundry are required to install energy efficient melting
technologies to be able to survive as well as growth simultaneously in the years to come.

Export Opportunity: Majority companies in India are exporting their products to developed
economies. Thus, it will be very difficult for small and medium scale companies to establish their
presence in the already developed economy. But there exists a plethora of opportunity for the
company to explore in untouched neighboring economies like Nepal, Bhutan, Myanmar,
Bangladesh etc.

Manpower: Although foundry business is expected to grow at a fast pace in the days ahead, there
is going to be the serious shortage of trained manpower at all levels. In order to overcome this
problem, the company should organize training programs to help employees acquire skills required
to perform their daily tasks. In addition to this, the company must provide attractive renumeration
to its employees. Foundry is considered a risky and hazardous shop, where safety of work force is
at a risk. This can be changed by using safety gears, creating safety awareness, curbing emissions
 Matrix Iron Foundry

and pollutants at the points of their origin. If included, the company would be able to attract large
number of employees.

Energy Cost: Energy cost is a major challenge for foundries in India. Company should employ
control measures to keep a track of this additional cost like conducting Energy audits, Monitoring
Consumption on major energy consuming points like MELTING, HEAT- TREATMENT etc.,
Benchmarking of Energy Consumption in MELTING and organizing

New Opportunities in new markets by new range of products: Induction furnace will help the
company in producing different range of castings like malleable iron, ductile iron, grey cast iron
etc. The company can utilize this as an opportunity to expand its reach to cater to the needs of
different industries entire new range of products including Brake Drum, Hub, Differential Case
and Cover, Flywheel, Gear Box and Gear Housing, Carrier Housing, Bracket, Spacer, Clutch
Housing. Press Roll, Cambridge Roll, Spacer Ring, Ringer wheel, Breaker Ring, AlterNet
Mounting Bracket, Spring shackles, can suspensions, fly wheel housing etc.

Marketing Strategy: The company needs to have a well-designed market strategy to increase its
visibility and improve sales. Some of the marketing plans which Matrix Foundry can apply to
expand its scope are as follows:
1. User-friendly website: With growth of internet and influence of social media, the website
has become crucial tool to build the business. Website is nothing but an online business
address to the firm. Matrix Iron Foundry should re-work on its current website to make it
more user-friendly. It is a key point of contact for both customers as well as leads and
should include all the minutest of details as required by any visitor.
2. Use of social media: Matrix Iron Foundry can create LinkedIn, Facebook and Twitter
pages for its product line and include the live link to its business website on these pages.
This is one of the best ways to increase the visibility of the company and generate leads.
The pages can be used the company to directly interact with the potential client and
converting leads to business.
 Matrix Iron Foundry

2. Product Overview
2.1 Detailed Description
Matrix Iron Foundry is a ferrous foundry industry established in 2002. The company manufactures
customized derivatives of grey cast iron for industry segments ranging from Automotive, Tractor,
Valve, Motor and Pump, Textile and General Engineering Industries. The company manufactures
and market a wide range of metal castings with best possible design as per customer specification.
Product
Profile

Municipal Agricultural Industrial Pumps and Ornamental Other

Castings Castings Castings Valves Castings Castings

Manhole Flour Mill Centrifugal Round Boiler Garte

V-Belt Pulley
Cover Machine Pumps Casting Bars

Manhole
Rice Huller Impeller Pipe fittings Bollards Mill Stands
Extension

Telecom
Flanges and
Chamber Roller RIngs Bench Legs Gear Boxes
Fly-Wheel
Access

Counterweig Spiral
Tree Grates Tractor Parts C.I Pans
hts Stairways

Trench
Hand Pump Anchor Spears
Gartes

Valve Boxes Couplings Grills

Earthing Plate Motor Body

Plummer
Blocks

Indian foundry industry majorly comprises of two types of furnaces; cupola furnace and induction
furnace. The company currently uses cupola furnace to produce grades of iron. But the company is
 Matrix Iron Foundry

planning to switch to induction furnace which is relatively expensive than cupola but is
technologically more advance and efficient.

2.2 Technology used

Matrix Iron Foundry currently uses cupola furnace for casting purposes. The two casting
techniques used by the company for casting of metal are; Green Sand Molding and No bake
casting method.

Green Sand Molding: Green sand molding technique utilizes a mold made of compressed or
compacted moist sand packed around a wood or metal pattern. A variety of other additives like
pitch, cellulose and silica flour are used in this process. The main advantage of using this process
is that sand can be used any number of times after adjusting its composition. The wet green sand
is mounted on the mold board and a suitable flask is placed around to produce a cavity
representing one half of the casting. The mold is then squeezed or jolted together. The other half of
the mold is produced in similar fashion and the two flasks are then placed together to form a
complete mold. Not only are green sand castings relatively inexpensive, they can also make very
large castings. Because of its flexibility, heat resistance, and relatively low cost, green sand casting
is the most widely used casting process. It is best known for sandcasting method because it can be
poured without further conditioning.

Nobake Casting: It is a chemical process that involves the use of chemical binders to bond the
molding sand. A mixer is used to blend the sand with the chemical binder and catalyst. As the sand
exits the mixer, the binder begins the chemical process of hardening. This method of mold filling
can be used for each half of the mold (cope and drag). Each mold half is then compacted to form a
strong and dense mold. The Sand used for the mold cannot be reused as in other sand casting
process. But some techniques are developed by which the sand can be broken down, cooled and
filtered to be reused. The reclaimed sand is then mixed with a large amount of fresh sand in order
to make a new no bake sand mold. After the compaction process, a rollover process is used to
remove the mold from the pattern box. Thereafter the molded sand is taken away from the casting.
Then various procedures follow including the finishing and the sand can be reclaimed by thermal
means. No bake process is an ideal process for high value, heavy and critical castings.
 Matrix Iron Foundry

However, the company is currently planning to replace cupola furnace to induction furnace to melt
cast iron as the former emit lots of dust & other pollutants and close temperature control is difficult
to maintain. Unlike cupola furnace, induction furnace operates on the principle of electro Magnetic
Induction. It is comparatively easier to control temperature in case of induction furnace. Because
of its decreased operational cost and fast and efficient melting procedures foundry companies in
India are extensively deploying induction furnaces into their operations. They can have capacity
starting from one kilogram to thousands of kilograms.
Benefits of Installing Induction Melting Furnace:
1. Low melting cost
2. Higher Production
3. Low rejection rates
4. Better quality
5. S.G. Iron castings can be made
6. Cheaper scarp material can be used
7. Environment Friendly

There are two primarily types of induction furnaces; coreless and channel.

Coreless Induction furnace: Coreless induction furnace comprises of refractory lined vessel. It
consists of a power supply unit, a transformer, converter, capacitor bank and charging unit for the
device. A cooling system is provided to maintain the temperature of the coil. The furnace is
normally fed from three-phase, high voltage power source. When current passes through the coil,
then it results in the formation of the electromagnetic field which sets up eddy current in the
material which gets heated up and results in melting of the material. The coil of this type of
furnace contains a heavy duty and high conductivity copper tubes wounded into a helical coil. This
coil is enclosed in a steel shell to prevent its heating. A power circuit is used to obtain the desired
level of voltage and frequency used for heating purposes. As the frequency increases, the power of
furnace increases with less turbulence.

Channel Type Induction furnace: Channel induction furnace comprises of a refractory lined steel
shell which contains the molten metal. Attached to the steel shell and connected by a throat is an
 Matrix Iron Foundry

induction unit which forms the melting component of the furnace. The induction unit consists of an
iron core in the form of a ring around which a primary induction coil is wound. This assembly
forms a simple transformer in which the molten metal loops comprises the secondary component.
The heat generated within the loop causes the metal to circulate into the main well of the furnace.
The circulation of the molten metal effects a useful stirring action in the melt. This type of furnace
is generally not preferred to produce steel and usually and is used for melting low melting point
alloys and manufacturing cast iron.

Process flow for induction furnace

Induction Furnace (IF) is ideal for melting and alloying a wide variety of metals with minimum
melt losses, while, limited refining of the metal is possible.

Induction Furnace
• Nonconductive crucible Eddy currents, circular
Coil creates reversing
AC Magnetic electric currents, inside the
• Holds charge metal Current magnetic field that Field metal, by electromagnetic
penetrates metal
• Surrounded by copper induction
wire

Melted
Metal

Eddy currents cause

Required metal is made vigorous stirring of
melted metal

2.3 Application Areas

The company manufactures a wide range of Grey Iron Casting finished products in full form or as
accessories.
1. Compressor Pumps: Compressor Pumps suitable for agriculture, Domestic and Industrial
purpose.
2. Municipal Castings: Products suitable for infrastructure projects like highways, bridges,
airports and tunnel
 Matrix Iron Foundry

3. Domestic Items: Products suitable for domestic purposes like Iron Tawa, Iron Pan, Iron
Bevel Gears for Concrete mixture machine, Iron pulley, flour mill, swag blocks, durum’s
used for crushing stones and levelling the floors, top and bottom of chimney, cast iron
shutter gate, hinged covers, stands for gas stoves, bench legs, grills, fancy items
4. Motor & Pumps Accessories: For the Motor and Pump industry the company
manufactures Pump Castings, Impellers, End Bracket, Flanges, Motor Body Covers
5. Agriculture Accessories: The company make accessories for its use in agriculture sector
like flour fill machine, rice huller, roller rings, hand pump, tractor parts
6. Industrial Use: Products including Impeller, caster wheel, Plummer block, crucibles, air
blower, circulating pumps, counterweights, flanges for its use in aerospace, automobile,
railways, shipping, chemical, petroleum, paper, sugar and defense industry.

3. Company’s SWOT Analysis

3.1 Strengths
Deep Product Knowledge: The company product portfolio is its biggest strength. It offers a wide
range of products catering to different industries ranging from Agriculture, Automobile, Pipe
fitting, Textile, Motor and Pump etc. A diversified product portfolio ensures revenue flow from
different markets and industry segments.
Quality Assurance System: The company has integrated Total Quality management system into
its existing foundry practice to ensure that the products delivered are at par with the quality
demanded by its customers.
Technically Competent: The company makes use of software to achieve consistency of grades of
iron in cupola furnace.

3.2 Weaknesses
Huge Capital Involved: Metal casting is an energy-intensive process. The production of patterns
requires significant capital investment in terms of machinery, infrastructure and skilled labor.
Furthermore, installing a furnace also requires significant investment. Thus, ensuring stable capital
base for the company becomes a huge challenge.
Obsolete Technology: The company current uses cupola furnace for producing casting iron in its
raw form or finished products. However, companies in India have already substituted cupola with
 Matrix Iron Foundry

induction furnace to address quality and demand-supply issues relating to cupola. This represent
both an opportunity and weakness to the company.

3.3 Opportunities
Location Advantage: Ease availability of low-cost manpower and presence of abundant iron ore
reserves in India provides huge opportunities for company to reap benefit from.
Exposure to new technologies: The company has an opportunity to adopt newer and efficient
means of casting iron such as; induction furnace etc.
Exposure to new markets: With increasing demand for heating and hardening equipment’s, the
company has huge potential to expand its reach to untapped markets.
Growth in automotive sector: India is expected to emerge as the world’s third-largest passenger-
vehicle market by 2021. Currently, the automotive sector contributes more than 7 percent to
India’s GDP. The Automotive Mission Plan 2016–26 sets an aspiration to increase the contribution
to 12 percent. Recent expansion in the automobile market foresees a remarkable increase in casting
consumption in this sector during the years to come

3.4 Threats
Government and Environmental regulations: The company is exposed to stringent government
rules and procedures. This increases the compliance cost for the company. Time consuming land
and environmental approvals hinders the growth of the sector.
Immense competition: The company faces stiff competition from industry giants like JSW Steel,
Essar Steel, and ArcelorMittal etc.

4. Market Overview
The Indian foundry industry manufactures metal cast components for its applications in Auto,
Tractor, Railways, Machine tools, Sanitary, Pipe Fittings, Defense, Aerospace, Earth Moving,
Textile, Cement, Electrical, Power machinery, Pumps/Valves, Wind turbine generators etc. At
present there are around 4,500 foundry units in the small, medium and large-scale sector. Out of
these only 1,500 units have international quality accreditation.
Over past decades due to shift in demand from iron to lighter castings materials for manufacturing
fuel-efficient automobiles and electronic vehicles and wide variety of machinery and equipment
 Matrix Iron Foundry

such as cranes, fans, motors, appliances, pumps, conveyor equipment etc. the demand for new
casting metal parts have continuously increased. Apart from this, the country’s “Make-In India”
campaign, Housing for All, Power for all and modernization of railways require the foundry
industry to grow three-fold in the next ten years. There is an upsurge in the demand for quality
casting but the foundries present are currently not adequately equipped to manufacture quality
castings at competitive prices and hence need thorough modernization. The company Matrix Iron
Foundry Application is committed to restructure its current operations and integrate induction
furnace instead of cupola one to fulfill market commitments.

Cupola and induction furnaces are widely used for melting purpose in Indian foundries. Over past
decade the use of induction furnace for melting has increased exponentially. Induction furnace
technology claims to have lower CO2 emissions compared to cupola furnace. Induction furnace is
best suited for both ductile iron as well as steel melting which requires a temperature in excess of
1500°C, whereas for graded cast iron (≤1450°C) both cupola and induction furnace can be used.
Increase in demand, lack of skilled labor and ease of operation has made many foundries shift from
cupola to induction furnace.

4.1 Indian Market

4.1.1 Market Size and Growth
The foundry industry in India is the third biggest globally behind China and USA. Foundry Industry
has a turnover of approx. USD 19 billion with export approx. USD 2.7 billion (castings alone) 1.
The production of castings in India is expected to increase from 11.5 million tons in 2018 to 20
million tons by 2025. However, Grey iron castings have the major share i.e. approx. 68% of total
castings produced2. The automobile sector consumes around 40% of castings produced in India. As
of 2018, aluminum castings contributed around 15% of the total castings production in the country.
There are around 47 electric arc furnaces and 1128 induction arc furnaces that use sponge iron or
melting scrap to produce semi-finished steel3.

1 https://www.thehindubusinessline.com/economy/foundry-industry-upbeat-on-growth-prospects-post-
gst/article23459724.ece
2 https://www.steel-360.com/stories/steel/growing-demand-foundry-sector
3 https://www.steel-360.com/personality/induction-furnaces-will-follow-bis-standards-survive-steel-ministry
 Matrix Iron Foundry

4.1.2 List of top providers

The major foundry clusters are in Batala, Jalandhar, Ludhiana, Agra, Pune, Kolhapur, Sholapur,
Rajkot, Mumbai, Ahmedabad, Belgaum, Coimbatore, and Chennai, among other Indian cities.
South India, particularly Tamil Nadu and Karnataka, contribute 50 percent of the total production of
castings in India4.

The major players in the casting industry include Electrosteel Castings Ltd., Hinduja Foundries
Ltd., Jayaswal Neco Industries Ltd., Nelcast Ltd., Tata Metaliks Ltd., Ashok Iron Works Pvt. Ltd.
Brakes India Pvt. Ltd., DCM Engineering Ltd., Menon and Menon Ltd., Sanmar Foundries Ltd.
Major foundries present in West Bengal are, Kiswok Industries, Calcutta Ferrous, Bharat
Engineering Works, Crescent Foundry, Shree Uma Foundry, JPK Metallics.

Other prominent vendors in Induction Furnace castings are: Porwal Auto components Ltd.,
Kiswok Industries, Shah Hi-tech Auto Alcast Co. Pvt Ltd., Arush Metal Casting Ltd, BMC Metal
Cast Pvt Ltd., Sudisa Foundry Private Limited, Prompt Castings, Nipha Exports.

4.1.3 Analysis of Product Demand

4.1.3.1 Top customer industries

Foundry industry is major feeder to following sectors; Automobile and Auto-components,
Railways, Power sector, Tractor Industry, Earth Moving Machinery, Pumps, Compressors, Pipes,
Valves and Pipe Fittings, Agriculture, Electrical/Textile/Cement/Agro Machinery, Machine Tools
and Engineering Industries, Sanitary Castings and Engineering Exports.

4.1.3.2 Available Alternatives

Foundry industry faces huge competition from different available metal choices, for example, iron
versus aluminum. Use of closer substitutes like plastic pipes, fittings, sanitary items, and stainless
steel, aluminum pan has already reduced the demand for iron casting. Moreover, price of substitute
goods made of light material are much lower than those of iron products. Consequently, metal iron
faces huge competition from available alternatives like non-metallic, power metallurgy,
composites, fiber-reinforced plastics and other sophisticated methods of forming and shaping.

4 https://www.foundry-planet.com/equipment/detail-view/india-becomes-worlds-second-largest-castings-
producer/?cHash=51d0cce5ee66998374437adeabcfd327
 Matrix Iron Foundry

4.1.4 Import and Export Trends

The primary market for Indian casting exports are the U.S. and the European Union. Some sectors
import castings from Thailand and China. Majority of the payers in India ship their castings to
developed economies like USA, UK, Germany, New Zealand, France, Italy, Qatar, Oman, Bahrain
and UAE. The exports of castings from India in 2017-18 have shown a significant growth after
declining trends for last few years5:
3000
2729 2731
2503
2500 2366

2000

1500
1152
946 928 962
1000

500

0
2014-15 2015-16 2016-17 2017-18

Exports Imports

4.2 International Market

4.2.1 Market Size and Growth
The production value of the global foundry industry is expected to grow by a CAGR of 6.2% to
reach US$81.94 billion in 20236. In 2017, global castings production witnessed an increase of
5.3% from 2016 and reached a value of 110 million tons. Based on total output Russia had the
highest growth in 2017 with an increase of 8.3% in production from 2016. China increased its total
production by two million metric tons to a total of 49.4 million. Meanwhile, U.S. increased its
production of Grey Iron by 4% and India increased by 6.2%.
Total production of iron increased, with grey iron growing 6% and ductile iron expanding by
3.8%, steel growing by 6% and aluminum production jumped by 6.7%.

5 http://www.foundryinfo-india.org/Export_of_castings.aspx
6 https://www.digitimes.com/news/a20181101VL200.html?chid=2
 Matrix Iron Foundry

4.2.2 List of top providers

The major players operating into Induction Furnace market includes: Electrotherm, Danieli, SMS,
Meltech, Tenova, Steel Plantech, Doshi, IHI, DongXong, Yueda, Nupro Corporation, Otto Junker
ECM Technologies.

5. Competitive Landscape
5.1 Top providers in India
Induction Furnace: Electrotherm (India), Electrosteel Castings Ltd., Hinduja Foundries Ltd.,
Jayaswal Neco Industries Ltd., Nelcast Ltd., Tata Metaliks Ltd., Ashok Iron Works Pvt. Ltd.
Brakes India Pvt. Ltd., DCM Engineering Ltd., Menon and Menon Ltd., Sanmar Foundries Ltd.
Porwal Auto components Ltd., Kiswok Industries, Shah Hi-tech Auto Alcast Co. Pvt Ltd., Arush
Metal Casting Ltd, BMC Metal Cast Pvt Ltd., Sudisa Foundry Private Limited, Prompt Castings,
Nipha Exports., Inductotherm Group India, Megatherm.

5.2 Analysis of Market Share

Due to the presence of a several large and small-scale vendors, the foundry market in India is
highly fragmented. The market is also characterized by the presence of well-diversified local
vendors who cater to the demands of various end-users. These competitors are mainly present in
five industrial clusters, namely Belgaum, Batala and Jalandhar, Coimbatore, Kolhapur, and Rajkot.

5.3 Industries with Product Demand

Demand for foundry products was increasing owing to its quality, and the industry was the second
largest producer of castings in the world after China.

 Automotive: The foundry market is linked directly with the development of the overall
automotive sector. Growth of the automobile industry is expected to generate huge demand for
castings producers. Rapid growth of the automotive sector has also led to the steady development
of other subsidiary industries like the auto component industry indicating huge demand for
castings.
 Matrix Iron Foundry

 Pipes & Fittings: The pipe sector in India is poised for steady growth due to substantial
investments and capacity additions. Demand for castings is expected to expand with the growth of
the pipes and fittings market in India.
 Power: Consistent power supply and availability of quality electrical equipment are necessary for
the growth of the Indian economy from a global perspective. As of December 2018, India had a
power generating capacity of ~349.28 GW. The Government of India has targeted an addition of
88.5 GW under the 12th Five-Year Plan (2012-2017) and another 100 GW under the 13th Five-
Year Plan (2017-2022). The foundry industry is expected to benefit from such power generation
installations.

Sectorwise Major Consumer of Castings

2% Auto

3% Others
5%
Sanitary
3% 5%
2% 32% Pipes and Fittings
Agriculture
6% Power
Railways
6%
Industrial Machinesry
6% Machine Tools
10%
Electrical Equipment
7%
7% 8% Pumps and Compressors
Valves

5.3.1 Top companies using this product

The company supply their products to domestic as well as international markets. Some of the
company using the products manufactured by foundry company includes established industries
like Tata motors, Agricast, Kramp, IVCRL, Larsen and Toubro, Ramte group, Indian Railways,
Eicher Tractors, JCB, Mahindra, Escorts, Ashok Leyland, Indian Railways, Bosch, New Holland
Agriculture, Automotive Axles Limited, FIAT, NTPC, BHEL, SAIL, HAL etc..
 Matrix Iron Foundry

5.4 Segmentation of Product Demand

Ductile
iron
casting Non-
Steel
ferrous
Casting
casting

Malleable Segmentation
by casting
Grey iron
casting type casting

Electrical
Agriculture and
construction

Industrial
Automotive
machinery
Segmentation
by end-users
 Matrix Iron Foundry

Channel
Induction
Furnace
Coreless Rollover
Induction Induction
Furnace Furnace

Segmentation
by Induction
type

6. Value Chain analysis

A chain of activities is involved in producing high quality metal castings. Initially, a prototype is
created and approved by the relevant department. Then, prime quality raw materials are processed in
their molding lines, furnaces, sand plants depending on the type of products. Automated high-
pressure molding lines, auto mated sand plants, shot blasting machines, cold box core system, three
multi-head drilling units, plane dynamic machines are some of the technologies used in processing
of iron into iron castings.
 Matrix Iron Foundry

Casting with
Pattern Molding Melting
Defects
Department Department Department

Feedback
Production of
castings

External Casting with No Inspection

customer Defects department

End-User

The pattern shop, core shop, molding shop and melting shop are the responsible departments to
produce castings inside the foundry and one of these departments will be of internal supplier and
internal customer to each other. The internal supplier must satisfy the internal customer in turn to
satisfy the external customer. After the production of castings, it passes through the various
inspections. The castings with no defects will go the external customer and the castings with
defects will go the melting shop for re-melting process. The feedback from the end user through
external customer helps the foundry for continuous improvement to produce castings and process
updating.
 Matrix Iron Foundry

7. Risks and Barriers to Growth

1. The main challenge bogging the industry down is lack of resources and technology
upgradation and access to quality manpower.
2. Energy consumption is a big challenge for the foundry industry. The sources of energy
vary from a cupola furnace to an induction furnace. While coking coal is the source of
energy for melting in cupola furnace, electricity is used for the melting in induction
furnace. Over last few years, the prices of both coking coal and electricity have risen
thereby leading to a sharp rise in the power bill of the foundries. This cost is significant as
energy costs are the second largest cost after raw material costs in foundry operations. The
presence of advanced control mechanisms and energy management programs in foundries
is essential to keep a track of these factors. However, majority of Indian foundries are in
small to medium category without the presence of these advanced control mechanisms,
thereby making it difficult to monitor and control energy consumption.
3. Risk and barrier to growth in the current market also includes issues concerning quality,
price and marketing of the product.
4. Increased Raw Material Costs: Export taxes and import duties have increased the cost of
raw materials, thereby squeezing the profit margins of manufacturers in the foundry market
in India. In addition, high demand for raw materials is causing suppliers to increase their
prices. This in turn poses a major hurdle for the growth of the Foundry market in India
during the forecast period.
5. License Policy: The license policy approving the site, capacity, technology, type and
expansion of industries hinders the growth of the sector.
6. Infrastructure inefficiencies and availability of skilled labor are some of the other problems
stalling the growth of the sector.
 Matrix Iron Foundry

8. Appendix
8.1 Interview Notes

Organization: Kiswok Industries

Name:  Mr. Ashish Kesharwani
Designation:  Senior Marketing Executive
Phone: 91 33 2669 6661
Website: http://www.kiswok.com/web/Contact
Interview Date:  8/7/2019
Interviewee Type: Competitor
Interview conducted by Himanshi Mehta

Mr. Ashish Kesharwani is the senior marketing executive at Kiswok Industries. They are one of
the prominent iron foundries operating in India. Started in 1957 as Kejriwal Iron and Steel Works
in Howrah region, it is one of the most organized foundries in iron and steel sector. In 1997
Kejriwal Iron and Steel Works was renamed as KISWOK Industries Pvt. Ltd. which has today
grown into a force to be reckoned with in the global castings industry. With Production Capacity
of 1,00,000 MT annually they aspire to become the most respectable company in the casting
industry from India with the help of new technological innovation in their engineered products.

They cater to the demands and manufacture diverse product mix for multiple segments of the
market. They fulfil the demand of iron casting products in automobile industry, agriculture
industry, railway, drainage and utility industries. Their products include automotive castings,
drainage castings, pipe fittings and valves, drainage castings, railway castings. In automotive
castings, they are manufacturing products like Brake Drum, Hub, Differential Case and Cover,
Flywheel, Gear Box and Gear Housing, Carrier Housing, Bracket, Spacer, Clutch Housing. Their
agricultural product mix consists of: Press Roll and Cambridge Roll, Spacer Ring, Ringer wheel,
Breaker Ring. Their railway product mix consists of machinery spares and tailor-made products as
per customers’ demand.
 Matrix Iron Foundry

They believe that over 50% of India’s energy requirement are met through exports. Domestic
market is either dominated by Cupola furnaces (conventional or divided blast type) or Induction
furnaces. A cupola furnace helps in gaining 80-87% efficiency in the molding process whereas the
newly developed induction furnaces help attaining 70-87% efficiency. The demand for these
segments is completely subjective and depends on the type of product requested by the clients. But
since it is the age of automation, the metal castings industries are also automating their entire
processes.

They are aware about the fact that there are multiple small, medium and large companies into iron
casting manufacturing like Ashok Group, that has made their presence relevant as an iron foundry.
Mr. Ashish is of the view that having quality products and efficient use of technology distinguishes
them from their fellow competitors.

They supply their products to domestic as well as international markets. Their clientele includes
established industries like Tata motors, Agricast, Kramp, IVCRL, Larsen and Toubro, Ramte
group. Their automobile segment dominates the overall demand for their products with Tata
Motors being their most valuable client. They supply their products as spare parts of machine
components that are used and installed in building advanced machines like automobiles, drainage
systems or railway tracks. From being a general casting manufacturer, they become prominent
automotive casting provider because of their contributions from this segment. They are also the
largest manufacturer of ductile pipe fittings in India.

A chain of activities is involved in producing high quality metal castings. When approached by the
client, they first create a prototype and get it approved. Then, they procure prime quality raw
materials which is processed in their molding lines, furnaces, sand plants depending on the type of
products. Automated high-pressure molding lines, auto mated sand plants, shot blasting machines,
cold box core system, three multihead drilling units, plane dynamic machines are some of the
technologies used in processing of iron into iron castings.

These castings are regularly shipped to USA, UK, Germany, New Zealand, France, Italy, Qatar,
Oman, Bahrain and UAE. Their export strategy is designed to convert trial orders to bulk export
 Matrix Iron Foundry

orders. Commitment, Quality and competitiveness are the main pillars for driving and increasing
their exports and make a global presence.

Organization: Sudisa Foundry

Name:  Mr. Ashok Mishra
Designation:  Executive Director
Phone: 9835178870
Website: http://www.sudisa.in/index.html

Interview Date:  8/7/2019

Interviewee Type: Competitor
Interview conducted by Himanshi Mehta

Mr. Ashok Mishra is the executive director of BMC Metal Cast Private Limited. It was founded in
2004.They have manufacturing units in Jamshedpur and Jharkhand for manufacturing and sale of
sophisticated castings for major industrial companies in the India. In 1975, the company was
established in the name of Foundryco with a Cupola Furnace and hand molding facility having an
annual capacity of 900 MT. In 2004, Sudisa Family took over the company and with minimum
modification increased its annual capacity to 1800 MT. In January 2006, they replaced their 500
Kg Cupola furnace with a Medium Frequency Induction Furnace along with semi-automatic sand
Plant. They want to be one of the leading Indian manufacturers of Ductile and Cast Iron and Meet
the aspirations of the customers in domestic and international markets.

The company is into production of suspension parts, axle parts, excavator parts, pipe fitting parts.
A wide range of castings in the qualities (ISO Approved) is produced like Grey Iron, Ductile Iron
within weight classes 1.0 kg to 100 K.G in Different module. Their suspensions parts product
range includes AlterNet Mounting Bracket, Spring shackles, can suspensions, fly wheel housing.
Their axle parts include Brake Drums, differential case, cover plates. Their excavator product mix
includes shifter rings. And they supply pipe blends, flange and short collar bends in pipe fitting
product mix. Their key products include Brake drums, Differential case, axle parts and suspension
brackets. Their present market share includes 55 products being supplied to various segments.
 Matrix Iron Foundry

They replaced their cupola furnace with the induction furnace in 2004 and installed a dual track
Induction furnace for efficient production of spare parts. They are constantly developing their
technologies in order to provide quality products to their customers. They operate under a total
area of about 55000Sq.ft with buildup area of 40000Sq.ft. Their present technology consists of
induction melting with semi-automated molding system to produce a total of 1000 MT per month
along with a sand plant, molding and pouring facility, shot blasting and grinding facility with
simulation technology and CDM for testing.

Its customers include major manufacturers or OEM of passenger cars, commercial vehicles,
engines, transmissions, axles, hydraulics and heating. Their target industries include automobile,
transmission, agriculture and pipe fittings. They sell their products using wholesale distribution
channels. Some of the companies they have worked for are Tata Motors, Pawan Auto Pvt, Jamna
Auto Pvt Ltd, OMAX, Preet etc.

They want to export their products to foreign countries, but they are restricted with the limited
resources and lack of knowledge about adequate target market. If given a chance, they want to
export to countries like China, Japan, Germany.

Organization: Prompt Castings

Name:  Mr. B.N Saraf
Designation: Director
Phone: +919830377604
Website: http://www.promptcastings.com/index.html

Interview Date:  8/7/2019

Interviewee Type: Competitor
Interview conducted by Himanshi Mehta

Mr. B.N Saraf is the director of Prompt Castings Pvt Ltd. It is one of the leading manufacturers of
Graded Cast Iron and Ductile (S.G.). It was established on 21st July 1999. They want to become a
 Matrix Iron Foundry

world leader in Die Casting and precision machining. They want to expand their product horizon
to service global customers. They also aspire to become a One Billion Company by the year.

They manufacture Ductile Iron and Grey cast Iron for Oil Pump Housing, Hub for automobiles,
Hydraulic Piston and Glands, Engine components, Valve Bodies to meet all the requirements for
their customers. They are supplying High-duty Grey Iron Castings to Automotive Industry and
converting Forging Items to Ductile Iron Castings for Automotive and Other Engineering
Industries.

They are currently catering to the demands of Railways, Automotive, Earth Moving Equipment,
Agricultural, Hydraulic and Engineering fields. Their key product which drives most of the
demand for the organization is Ductile iron. Their majorly sell their products to Indian Railway.
Indian Railway being one of their top customers. In automotive Industry they supply their raw
parts to Tata Motors. They produce 1.45 tonnes per month

They can produce up to 300KGs of Ductile Iron. They use induction furnace in their industry and
do not want to continue the production through Cupola Furnace mostly because the spare parts
produced by Cupola requires labor and with increased emissions from coke. The technology
existing at their iron foundry includes Mechanical Software for Load Simulation/testing of
Products under Laboratory Conditions, Induction Melting Furnace(single track), Total Sand
Preparation Capacity of 10 MT/hour, Computerized Testing Facility, Microscope with digital
imaging for modularity, UTS Machine, Elongation testing machine, Chemical Testing Laboratory,
3 Drilling Units, 2 Boring Machine FBE (Fusion Branded Epoxy) Paint booth, Liquid Epoxy Paint
System Shot Blast Machine(Table Type) Core Shooter (Cold Box).

They procure their raw materials and input from local markets as per monthly client requirements.
These local markets are local small suppliers situated in Kolkata. They do not procure scrap iron
from big suppliers. For example, if Tata gave them an order, they procure scrap iron from the local
markets according to the order to create prototypes and for further melting and metal handling.
This raw molted iron is further processed in its molten stage only since most gains and high quality
 Matrix Iron Foundry

can be achieved at this stage. The iron is then filtered and degassed through sand and die casts.
And after the thermal processing the iron is supplied to buyers.

They associate in 3rd party collaborations with small companies in the eastern region and supply
their product to these small manufacturers. The target industries procure the casts and ductile iron
from the small iron manufacturers. The iron casts can also be directly sold high-end customers
after finishing processes.

They do not export their produces in foreign market. Their major focus is to build their presence in
the domestic markets mainly in the north eastern region of the country. The company faces
challenges of limited human resources and coke emissions from their Capula furnaces and hence,
plans of discontinuing its production.
 Matrix Iron Foundry

8.2 List of Potential Client

S.NO COMPANY NAME ADDRESS CATEGORY CONTACT

NUMBER
1. INDIAN 131, Sarat Bose Road, Automotive 08068093000
AUTOMOBILE Near Sishu Mangal
WORKS Hospital, Kolkata -
700026, West
Bengal, India

2. Shree Automotive Pvt Abhirami Building, Jetty Automotive 086977

Ltd Ghat Diamond Harbour, 24 32737
Parganas South, West
Bengal - 743331
3. Farmers Spree FCA Near Bhatia Hospital Tractor 099900
11, 3742, Gali Number 10, 00906
NIT 3, SGM Nagar,
Faridabad, Haryana
121001
4. Param Tractors Chattisgarh Tractor 098261
92255
5. Plasser India Private 13th Milestone Gurukul Railways 0129 429
Limited Indraprastha Estate 2600
Indraprastha Estate,,
Gurukul, Mathura Rd,
Sector 38, Faridabad,
Haryana 121003
6. Magnum Machine & 48, S N Roy Road, Near Machine 033 4071
Tools Pvt Ltd. Boro Shiv Tala, Kolkata, Tools 5501
West Bengal 700038
7. EMT Megatherm Pvt No 1,, Taratala Rd, Machine 033 2401
Ltd Taratala, Kolkata, West Tools 3245
Bengal 700088
8. Sanitaryware India 110, College St, Calcutta Sanitary 098301
Medical College, College 28984
Square, Kolkata, West
Bengal 700012
9. Goyal Pipe Fittings Co 15/3, Natabar Paul Road, Pipe Fitting 098310
Natabar Paul Road, 90176
Howrah, West Bengal
711101
10. Kadet Defence Systems NH6, Biparnna Para, Aerospace 089022
Private Limited Howrah, West Bengal 73103
711302, India, Srijan
Industrial Logistics Park,
Part A Block C, Third
 Matrix Iron Foundry

Floor, Unit II, Howrah,

West Bengal 711302
11. Woollen Textile 2nd floor block a, 9A, Lal Textile 033 2248
Industries - Felt Fabric Bazar St, Lal Bazar, 4163
Kolkata, West Bengal
700001
12. Hada Textile Industries 4, Govt Place North, B B Textile 093309
Limited D Bagh, B B D Bag, 18144
Kolkata, West Bengal
700001
13. Amrit Cement Trinity Tower 226/1 A J C Cement 033 4003
Bose Road 6th Floor, 3441
Kolkata, West Bengal
700020
14. JSW Cement salboni Ashna Shuli, West Bengal Cement 098003
721129 00556
15. Synchro Electronics P-278, C. I. T Road, Electrical 033 4001
Scheme - VI(M), Kolkata, 2092
West Bengal 700054
16. Andrew Yule Company 6,14, Mayurbhanj Rd, Electrical 033 2242
Limited Naptani Bagan, 8210
Mominpore, Kolkata, West
Bengal 700023
17. Power & Machinery 3, Mangoe Ln, Bow Power 33 2243 4245
Barracks, Kolkata, West Machinery
Bengal 700001
18. Punam Energy Pvt Ltd. 1A, D. L. Khan Road, Jaju Wind 88980 89165
Bhawan, Kolkata, West Turbines
Bengal 700027
19. Power Services 33, Phears Ln, Kolutolla, Power 033 2237
Tiretti, Kolkata, West Machinery 0508
Bengal 700073
20. M.S. Fittings 17, Weston Street, Pipe Fittings 033 2236
Manufacturing Co. Pvt. Kolkata, West Bengal 2869
Ltd. 700013