 "Good monsoon strengthens forging industry's sentiments")
As per the survey conducted by Association of Indian Forging Industry in March 2016, the estimated turnover of the 384 forging units operating in FY15 was Rs 27,835 crore, including Rs 6,100 crore contributed from exports, providing employment to approximately 100,000 people in the country.
The report also suggests that investment in plant & machinery also increased from Rs 15,500 crore in FY14 to Rs 27,833 crore in FY15. Overall production of forgings increased from 21.1 Lakh MT to 22.5 Lakh MT in 2014-15 and the production figure for 2015-16 is estimated at around 24.5 Lakh MT.
Commenting on the current Industry scenario Ranbir Singh, President, Association of Indian Forging Industry, said, "With a favorable monsoon season coupled with government's thrust on rural development, especially on irrigation programmes and farmers' welfare will definitely lead to improved buyer sentiment that would bring buoyancy in overall demand across all segments of the automotive industry.
Also, with the government's key focus on developing rural infrastructure and thrust on boosting the overall agriculture sector, tractor sales are expected to steer up domestically in the northern belt providing necessary impetus to the forging industry.
Potential revival in rural demand amid improving farm incomes would provide a stimulus to volume and revenue growth of CV companies, thereby improving profitability of forging companies as this sector is one of the major contributor to this segment. According to the latest reports on commercial vehicles sales, an increase of 13.75% has been registered in last three months (April- June 2016) at 2.05 lakh units as against 1.75 lakh units in the same period last year.
This year, to commemorate 50-year old journey of the forging association, AIFI would kickstart the biggest biennial conference-cum-exhibition, Forgetech India 2016 in New Delhi from 3-4th December. This forum intends to bring together the entire forging industry and other allied industries on a common platform to share, demonstrate and exchange ideas.
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The objective behind this initiative by AIFI is to put together an ideal platform for understanding the latest trends in the forging industry worldwide, exchange ideas, information and experiences, benchmarking their company with the industry stalwarts, networking and being updated on latest developments in forging technologies.
Sharing his thoughts, Ranbir Singh told that it is imperative to align the domestic units with the modern manufacturing practices of the developed world that come at a minimal cost. "This first-of-its-kind industry initiative will be a platform to discuss and share knowledge, insights, environment and economic trends and best practices to uplift and upgrade our facilities and productivity. Another focus area is to utilise this event to bring industry and academia together for building awareness and greater understanding of the industry scope and opportunities. The response so far has been overwhelming with over 30 sponsoring companies."