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The Global Foundry Market in India size is estimated to grow at a CAGR of 10.77% between 2022 and 2027 with the market size forecast to increase by USD 15,684.57 million.
This foundry market in India report extensively covers market segmentation by End-user (automotive, electrical and construction, industrial machinery, agriculture, and others) and Type (gray iron casting, non-ferrous casting, ductile iron casting, steel casting, and malleable casting) and geography India. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
The growth of the market depends on several factors, including a focus on technology upgrades, make-in-India initiatives, and increasing confidence within the foundry industry.
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A foundry is a workshop for manufacturing metal castings, wherein the molten or liquid metal is poured into a mold made of metal, sand, or a ceramic substance. The metal casting comprises a hollow cavity of the desired shape to form geometrically complex parts when liquid metal is poured into it.
The market share growth by the automotive segment will be significant during the forecast period. The Indian auto parts industry has experienced strong growth since 2010. Some of the factors contributing to this are strong end-user markets, improved consumer sentiment, and a return to satisfactory liquidity in the financial system. The automotive supply industry accounts for approximately 7% of India's GDP and employs approximately 20 million people who work directly in vehicle manufacturing or other companies that supply parts. A stable government framework, improved purchasing power, a huge domestic market, and increasing infrastructure development make India a major investment destination.
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The automotive segment was valued at USD 6,147.73 million in 2017 and continued to grow until 2021. In 2022, India's automotive industry produced approximately 22.9 million vehicles, including passenger cars, commercial vehicles, tricycles, two-wheelers, and four-wheelers. However, changes in rules and regulations, such as the transition to BS-VI emission standards, are estimated to impact the industry during the forecast period. Vehicle prices have risen due to changes in emissions technology. As automobiles become lighter, the use of non-ferrous metals is increasing in automobile production processes. Additionally, increased demand for emerging mid-range vehicles in India prompted manufacturers to ramp up production. The automotive industry accounts for more than 40% of India's annual foundry capacity of 10-12 million tons. Due to the continuing trends in the automotive industry, the India Foundry industry analysis is expected to grow significantly during the forecast period.
Based on type, the gray iron casting segment dominates the market. Due to its several advantages and widespread usage, gray iron casting is the most common type of casting manufactured and consumed by the foundry market in India. Such factors are expected to drive the growth of the gray iron casting segment in the foundry market in India during the forecast period.
Focus on technology upgrades is notably driving the India Foundry Market growth. India is one of the leading countries in the market. The main reason for this is the increasing demand for metal castings from the automotive sector. In 2022, India produced approximately 22.9 million vehicles, including commercial vehicles, passenger cars, tricycles, and two-wheelers. This has increased the demand for the auto parts needed to manufacture automobiles. To meet the growing demand for metal castings in India, foundries are investing in new technology and equipment.
The automotive sector saw a significant increase in sales in 2022 compared to 2021, with 13.63%. Similarly, motorcycle sales increased by 4.7% in 2022 compared to 2021. The automotive sector has declined to some extent due to rising vehicle prices. Indian foundries are therefore expected to benefit from technology upgrades in multiple ways, including low power consumption, improved production efficiency, higher utilization rate, and higher profit margin. Such factors are anticipated to propel the growth of the market during the forecast period.
The formation of foundry clusters is a key trend influencing the India foundry market growth. The purpose of the Industrial Infrastructure Development Program (IIUS), sponsored by the Ministry of Trade and Industry (MoCI) and the Department of Industrial Policy and Promotion (DIPP), is to provide strategic interventions to improve the infrastructure of industrial clusters and their international competitiveness. Under IIUS, the Government of India provides up to 75% of the project cost for the formation of infrastructure assets within the approved cluster. Infrastructure components may include information and communication technology (ICT) related infrastructure, physical infrastructure, shared facilities, research and development, information dissemination/international marketing, quality certifications, and benchmarks.
Each cluster must form a special purpose vehicle (SPV). An SPV must be a separate legal entity incorporated under the Companies/Corporates Act to qualify. The remaining 25% of costs are expected to come from other sources and 10% from industrial units and banking/financial institutions within the cluster. Such factors are anticipated to propel the growth of the market during the forecast period.
The lack of highly skilled manpower is challenging the India foundry market growth. Foundries in India lack skilled workers such as foundry engineers, pattern makers, and maintenance electricians. Technology upgrades require investment in training facilities to educate employees on various aspects, such as Different molding methods, patterns, casting methods, and different furnace techniques. Organized, modern training facilities and the creation of regular qualification programs help foundries to use advanced technology in their foundries.
Currently, most of the workforce is opting for managerial, clerical, and managerial positions. Over 90% of Indian foundries are MSMEs, whose managers often perform functions that large foundries outsource to skilled workers. To increase utilization rates, foundries in India invest in expert technicians specifically tailored to the task, including pattern makers, hand core makers, shapers, machine core makers, primary sand technicians, and metallurgical assistants. Unless this is achieved, the full potential of the market will not be realized. Such factors are anticipated to hinder the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ashok Iron Works P Ltd: The company offers different types of iron foundries such as machined iron castings, engine heads, and transmission. It also offers iron castings for automotive, construction, locomotive, and power plants.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
A Cast Foundry, Aditya Birla Management Corp. Pvt. Ltd., Ashok Iron Works P Ltd., Brakes India Pvt. Ltd., CALMET, Cooper Corp. Pvt. Ltd., DCM Ltd., Electrosteel Castings Ltd., Fortune Foundries Pvt. Ltd., Gujarat Metal Cast Industries Pvt. Ltd., Hackforth Holding GmbH and Co. KG, Jayaswal Neco Industries Ltd., JSW STEEL Ltd., Kalyani Group, Kirloskar Ferrous Industries Ltd., Larsen and Toubro Ltd., Menon and Menod Ltd., Nelcast Ltd., Tata Sons Pvt. Ltd., and The Sanmar Group
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Foundry Market in India Customer Landscape
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Foundry Market In India Scope |
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Report Coverage |
Details |
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Page number |
144 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.77% |
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Market growth 2023-2027 |
USD 15,684.57 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
10.19 |
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Regional analysis |
India |
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Performing market contribution |
India at 100% |
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Key countries |
India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
A Cast Foundry, Aditya Birla Management Corp. Pvt. Ltd., Ashok Iron Works P Ltd., Brakes India Pvt. Ltd., CALMET, Cooper Corp. Pvt. Ltd., DCM Ltd., Electrosteel Castings Ltd., Fortune Foundries Pvt. Ltd., Gujarat Metal Cast Industries Pvt. Ltd., Hackforth Holding GmbH and Co. KG, Jayaswal Neco Industries Ltd., JSW STEEL Ltd., Kalyani Group, Kirloskar Ferrous Industries Ltd., Larsen and Toubro Ltd., Menon and Menod Ltd., Nelcast Ltd., Tata Sons Pvt. Ltd., and The Sanmar Group |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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