While around Rs 300 crore investments have come in to Gujarat in the last two to three years in foundry and allied industries, slump in demand from user industries have pushed this feeder industry into negative growth territory.
Subodh Panchal, chairman of the 62nd Indian Foundry Congress and owner of Kastwel Foundries said that, "Quite a few major players have come into Gujarat in the last few years and set up units. Take for example, Brakes India Ltd, a TVS Group company, has set up a 2,000 tonnes per month unit at Jhagadia in Gujarat. Others like India Pistons Ltd in Jhagadia, Italian company Bentonite in Bhuj, apart from refractories like US-based Allied Refractory Products Pvt Ltd in Sanand have also come in the last two to three years." The overall investment in foundry and allied industries in the state in the last couple of years has been over Rs 300 crore, he informed.
One of the reasons behind these new units coming to Gujarat has been the recent investment plans in the automotive sector in the state, starting with Tata Motors, followed by Ford India and Maruti Suzuki, Hero MotoCorp and even the latest entrant Honda Motorcycles and Scooters. "As original equipment manufacturers (OEMs) come, several foundries would follow. Many foundries from other states have come to Gujarat thanks to the availability of power, which is a key requirement of the industry," explained Reena Bhagwati, joint managing director of Bhagwati Autocast Ltd and president of the Institute of Indian Foundrymen.
But, thanks to the general slowdown in the economy and in the automotive segment in particular, the growth of the foundry industry in Gujarat is on negative terrain, claimed Panchal adding that production growth has declined by around 20 per cent this year. Demand is down on an average by around 30 per cent.
The turnover of foundry and allied industries in Gujarat is around $ 1 billion annually from around 2,000 units. The national turnover of the industry is around $ 12 billion per annum.
The Institute of Indian Foundrymen is organising a three-day exhibition and conference, the 62nd Indian Foundry Congress in Gandhinagar between February 7 and 9, which would see participation from 1500 delegates from across the globe including countries like BRICS nations Germany, Italy, China, USA, South Africa among others.
