Forgetech India 2016: AIFI hosts international forging exhibition
Association of Indian Forging Industry gears up to host industry’s first ever international forging congress and exhibition: Forgetech India 2016
First biennial conference cum exhibition focused on the Indian forging industry
This mega two-day event has more than 44 companies from global domain exhibiting at the event, enrolment from over 500 national and international delegates and presentation of 31 technical papers on board
Indian forging industry’s estimated turnover stands close to Rs. 28,000 crores in FY 14-15 providing employment to approximately 100,000 people in the country
Snapshot: Indian Forging Industry
Total Installed Capacity: 3.76 million MT
Region wise installed capacity breakup (in million metric tonnes) – North: 1.32 | South: 0.51 | West: 1.61| East: 0.32
Estimated turnover: INR 27,835 crore including INR 6,100 crore contributed from exports
Investment in plant & machinery: INR 27,833 crore
Overall production of forgings:2.25 million MT
Region wise contribution to overall production (in metric tonnes) – North: 7,57,318 | South: 2,88,129 | West: 10,42,313 | East: 1,64,235
Forging clusters, number of units and their cumulative turnovers:
Western India: Rajkot, Pune & Mumbai – 141 units | Rs. 12,500 crores
Northern India: Ludhiana, Faridabad & Ghaziabad – 146 units | Rs. 9400 crores
Southern India: Chennai, Bangalore & Coimbatore – 75 units | Rs. 3700 crores
Eastern India: 22 units| Kolkata & Jamshedpur – Rs. 2,214 crores
***The data and statistics is based on the survey conducted by AIFI covering 384 forging units during FY 2014-15
New Delhi: Association of Indian Forging Industry (AIFI) commemorated their 50-year long journey had organized the industry’s first biennial conference-cum-exhibition, Forgetech India 2016 at Hyatt Regency, Gurgaon on 3rd and 4th December 2016.
It intended to bring together the entire forging industry and other allied industries on a common platform to share, demonstrate, network, exchange ideas, understand the latest trends worldwide, benchmark their company with the industry stalwarts and being updated on latest developments in forging technologies
Forgetech India 2016 witnessed participation from numerous national and international brand enterprises and forging players. Exhibitors covering the whole gamut of forging industry including forgings, forging materials, and forging equipment applied in fields of automobile, solar, aerospace, railways and wind sectors will be exhibiting and showcasing their technology, products and techniques. The exhibition-cum-seminar will have knowledge exchange and sharing within forging companies from India as well as international companies participating from counties like China, Japan, Korea and Europe, who will also be exhibiting their products on the Forgetech India 2016 platform.
Sharing his thoughts, Mr. Ranbir Singh, President, Association of Indian Forging Industry, said, “It is indeed our pleasure to announce the first chapter of India’s biggest biennial conference cum exhibition Forgetech India 2016 on completion of AIFI’s 50 glorious years. This first-of-its-kind industry initiative will be a platform to discuss and share knowledge, insights, environmental and economic trends and industry best practices to uplift and upgrade our facilities and productivity. Another focus area is to position Forgetech as a platform 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 500 delegates and 44 exhibitors registered.”
Overall forging industry scenario
► As per the survey conducted by AIFI in 2016, the estimated turnover of the 384 forging units operating in FY 2014-15 was INR 27,835 crore including INR 6,100 crore contributed from exports, providing employment to approximately 100,000 people in the country.
► Overall production of forgings increased from 2.11 mn MT to 2.25 mn MT in 2014-15 and the production figure for 2015-16 is estimated around 2.45 mn MT.
► With an installed capacity of around 3.76 mn MT, Indian forging industry has a capability to forge variety of raw materials like carbon steel, alloy steel, stainless steel, super alloy, titanium, copper, brass and aluminum.
► The overall capacity utilization of industry is also improved in FY 2014-15 stood at around 60% against 55% in FY 2013-14.
► Forging production in India likely to grow at CAGR of 9.5% for the period of 2015 – 18 and reach to 2.97 mn MT in FY 2017-18 from 2.25 mn MT during FY 2014-15.
Current Status of Indian Forging Industry: Anticipating Revival
Government’s thrust on manufacturing sector with initiatives like ‘Make in India’ and ‘Skill India’ has definitely created positive economic sentiments amongst the business community. Many global OEMs and Tier-I players are setting up purchasing offices in India and looking at procuring high standard quality products. This will definitely open up doors for lots of Indian manufacturers. Also, several auto OEMs are looking at India as a base for exports to the other Asian, African and even European markets which will push the growth for of auto component industry.
As per industry experts, all segments are likely to post a decline in November sales, which may potentially shave off as much as 2 percentage points from annual GDP growth. Industry feels that while the impact would obviously be more in the short term, however, the flushing out of unaccounted cash from the system is going to have a positive impact in the medium to long-term.
Distressed rural demand over last two years had resulted in decline in volume growth for commercial vehicle sector. 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. Overall the forging industry will witness a flat rate of growth this year, but there are enough positive indications in the long term which will put the industry back on the growth track.