market research report : foundry market in india 2012
DESCRIPTION
For the complete report, get in touch with us at : [email protected] The report begins with an introduction to foundries and their process flow. The foundry process flow broadly comprises of three stages including melting, casting and finishing. The various types of casting processes used in the foundry industry are also provided. The report begins with an introduction to foundries and their process flow. The foundry process flow broadly comprises of three stages including melting, casting and finishing. The various types of casting processes used in the foundry industry are also provided. The market overview section begins with an insight into the global foundry market, including the top ten casting producers and their average production per plant. India was the fastest growing top-ten nation in 2009, increasing its casting tonnage by 9% over 2008. Change in the regional production of the global foundry market has also been added. This is followed by an overview of the Indian foundry market, growth of its casting production and segmentation of castings. Foundry market has been growing consistently in India, with grey iron castings accounting for the biggest share of total castings produced. An overview of the foundry units in India along with their segmentation is also included. Foundry units are mostly concentrated in the small units sector. Sector wise consumption of castings shows the various sectors where castings are largely consumed. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market. This is followed by a section on foundry clusters, which includes a brief overview of foundry clusters and the Foundry Cluster Development Association, along with their distribution across India. A detailed profile including an overview and share of casting application is also provided for five major clusters, including Belgaum, Batala and Jalandhar, Coimbatore, Kolhapur and Rajkot. Exports and imports of this sector have been highlighted, which throws light on the casting products that are traded internationally. This section includes the growth in their total export-import value and their country-wise segmentation. An analysis of the drivers and challenges explains the factors leading to the growth of the market including increasing demand from automobile sector, strong economic growth, supportive government participation, low cost of labour and improving technology and modernization. Strong opportunity exists in the market as increasing demand for castings will drive the production of such products. This coupled with the fact that the Indian economy is growing strongly will lead to a developing market. Additionally, improving production technology and government support will help to stimulate growth in this market. The key challenges identified are market constraints, rising input costs and low capacity utilization. Restriction to local markets and infrTRANSCRIPT
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Foundry Market IndiaFoundry Market – India
January 2012
Executive Summary
Market
Foundry market in India registered production of a mn tonnes of castings in 20‐‐ In 200‐, India was the world’s second largest producer of castings and also one of the top 10 in terms of average production per plant It was also the fastest growing top‐10 nation in 200‐, increasing its casting tonnage by b% over 200‐ India currently has over c foundries in the small, medium and large scale sectors with around d units having international quality accreditation Foundry industry is a major feeder to various sectors, automobile sector accounting for the largest share
Drivers Challenges
Drivers & Challenges
– Increasing demand from automobile sector– Strong economic growth– Supportive government participation– Low cost of labour– Improving technology and modernization
– Market constraints– Rising input costs– Low capacity utilisation
Future Outlook
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 realise the Vision Plan 2020 various interventions are required
p g gy
Competition
Vision Plan 2020 Interventions In order to realise 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
Player 1 Player 2 Player 3
2FOUNDRY MARKET IN INDIA 2012.PPT
Co pet t oPlayer 4 Player 5 Player 6
•Introduction
M k O i•Market Overview
•Foundry Clusters
•Export‐Import
Dri ers & Challenges•Drivers & Challenges
•Competition
•Future Outlook
•Strategic Recommendations
3FOUNDRY MARKET IN INDIA 2012.PPT
•Strategic Recommendations
Foundry market is growing consistently in India and it is the second largest producer of castings in the world
Indian Foundry Market – Overview Production of Castings – Growth
• In 200‐, India was the world’s second largest producer of castings and also one of the top 10 in mn MT
terms of average production per plant
• It was also the fastest growing top‐10 nation in 200‐, increasing its casting tonnage by a% over 200‐
• Indian foundry industry employs around b mn
D%
Production of Castings – Segmentation
Indian foundry industry employs around b mn persons directly and another c mn indirectly
• Production of castings in India took a dip in 200‐ due to the global crisis, but has recovered with strong growth in 20
02011‐2015e2006‐10
K%i%j%
G%h%
Segment 4
Segment 2
Segment 5
Segment 3
Segment 1
growth in 20‐‐
•Growing concern regarding the quality and quantity of castings will drive the establishment of larger casting facilities in India over the next few years
F%
E%
•With growing demand from the automobile and engineering sectors coupled with India’s rapidly growing economy, the foundry market is expected to grow strongly in the near future
x occupy the biggest share of total castings produced
4FOUNDRY MARKET IN INDIA 2012.PPT
Source:
Major Foundry Clusters in India (x/y)
Foundry Cluster: Rajkot
Gujarat Foundry Overview Share of Casting Application
• There are about f foundry units at Rajkot which• There are about f foundry units at Rajkot which mainly cater to the local diesel engine industry
• Geographical spread of the cluster includes Aji Vasahat, Gondal Road and Bhavanagar Road areas
• Majority of the foundry units at Rajkot produces greya%
e%Segment 1
Segment 3
Segment 2Majority of the foundry units at Rajkot produces grey iron castings for the domestic market and ~g% of them exports castings such as electric motor castings
• Around h% of the units use conventional cupola as the predominant melting furnace while a local design
Rajkot d%
c%b%Segment 5
Segment 4
Segment 3
called 'Rajkot cupola‘ is also popular
5FOUNDRY MARKET IN INDIA 2012.PPT
Source:
Drivers & Challenges – Summary
Drivers
Increasing demand from automobileChallenges
Increasing demand from automobile sector
Strong economic growth
Market constraints
Rising input costs
Supportive government participation
Low cost of labour
Low capacity utilisation
Improving technology and modernization
6FOUNDRY MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Products and Services
Ticker Symbol
Stock ExchangeHead Office
Key People
Products and Services
Category Products/Services
Category 1 Product 1, Product 2, Product 3N D i ti
Category 2 Product 1, Product 2, Product 3
Category 3 Product 1, Product 2, Product 3
Name Designation
A
B
C
7
Source:
Category 4 Product 1, Product 2, Product 3 D
Note: The list of products and services is not exhaustive
FOUNDRY MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company (2/3)
i i l S h K iFinancial Snapshot Key Ratios
Particulars y‐o‐y change (2011‐10)
2011 2010 2009 2008
Profitability RatiosOperating Margin
Net Profit/LossTotal IncomeINR mnINR mn
Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets
002011201020092008
Financial Summary
• The company incurred a net profit/net loss of INR X mn in FY 20XX, as compared to net profit/net loss of INR Y mn in FY 20YY
• The company reported total Income of INR XX mn in FY 20XX, registering an increase/decrease of X per cent over FY 20YY
Return on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)registering an increase/decrease of X per cent over FY 20YY
• The company earned an operating margin of X.X per cent in FY 20XX an increase/decrease of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY 20XX, an increase/decrease of X.X per cent over FY 20YY
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity Ratio
b i l iKey Financial Performance Indicators
Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
8
EPS (INR)
PE Ratio (Absolute)Working Capital TurnoverCapital Employed Turnover
Improved DeclineSource:
FOUNDRY MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company (3/3)
Key Business Segments Key Geographic Segments
Segment 2Segment 1 Country1 Country 2 Country 3
0% 0%
Key Recent Developments
0%2011201020092008
0%2011201020092008
Description News
Overview • Company is a vertically integrated foundry, performing various machining, surface treatment, and heat treating operations in house
• It specializes in the manufacture of ductile iron and gray iron casting in the weight range of a grams to a i f b k
Product Linemaximum of b kgs
• It produces ductile and gray iron castings weighing less than a pound to over c tons and is an ISO 9001:2000 and ISO/TS 16949 certified company
Expansion Plans • It has acquired a new grinding/fettling center from country
9
Source:
FOUNDRY MARKET IN INDIA 2012.PPT
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10FOUNDRY MARKET IN INDIA 2012.PPT
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