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CRISIL Equities


Statistics Estimated industry size Estimated production of castings Market share

Rs 130 bn 6.9 mn tonnes per annum produced by around 4,500 units

75% of the output is produced by 500 large and globally competitive players 25% is produced by small-scale family-owned operations

Industry characteristics

A majority of the large foundries are captive foundries with capacities ranging from 30,000 to 60,000 metric tonnes per annum and utilisation rates from 85% to 90%. They mainly cater to mass producers of engine blocks or related equipment in the automotive and agricultural equipment industries Capacity utilisation of smaller players is around 55% and they cater to the local pumps and valves, automobile and textile industries

End use industries

Pumps/valves - 46% Food processing industry - 7% Textile machinery - 6% Electric motors - 6% Automotive - 4% Others - 31%

Castings industry snapshot

The foundry cluster of Coimbatore – An overview

Statistics Total capacity Exports

30,000 tonnes per month 10% of output

Industry characteristics

Good connectivity with all major industrial towns in India especially Chennai and Bangalore Concentration of revenues with large customers leading to technological and transactional dependence as well as weak bargaining strength Strong vertical linkages with suppliers, subcontractors and customers due to proximity to the local pumps industry and textile industry, which are the main customers 60% of the units are proprietary concerns, the remaining partnership and private limited units are closely-held family concerns 80% of the units use the old cupola system (metal melting system), due to which thermal efficiency is lower and pollution is higher Most of the foundries are engaged in the manufacturing of low value raw castings


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