The Indian forging industry has about 400 units predominantly in the west and north and annually produces around 2.2 million metric tonnes and occupies 7.8 per cent of the global market. It is second in total quantity to China who produces 11 million tonnes that occupies 39 per cent of the market. The China plus one factor and the spiralling energy costs in Europe have enhanced the prospects for Indian players and in the next three years the industry’s capacity is expected to increase to 3.5-4 million tonnes.
At present, the industry mainly supplies to auto companies, but with the emergence of battery based electric vehicle, the need for parts have substantially reduced. “The parts of 2-3 kg category will come under severe threat in about 7 years from now and 40 per cent of the industry is expected to be hit,” said Vidyashankar Krishnan, Managing Director, M M Forgings. Battery based EV two-wheelers and passenger cars are expected to have 80 per cent lesser forged parts in terms of weight, however, this scenario entirely changes in hybrid vehicles which needs higher percentage of forging parts than the current ICE vehicles. “I believe hydrogen is the future and if the shift in vehicles is to hydrogen-based ICE or fuel cells, then the demand for forging industry will increase,” highlighted Krishnan.
The industry is also venturing into other sectors like defence, aerospace and railways. “Currently automobiles form 80 per cent of our orders but we are looking to realign with 60 per cent auto and 40 per cent non-auto customers by 2030,” said Muralishankar, Managing Director, Super Auto Forge.
The key plans for the Indian forging industry over the next 5 years are:
- Expand total forging production capacity from the current 2.2 million metric tonnes to around 3.5-4 million metric tonnes to cater to growing domestic and export demand.
- Upgrade technology and automation levels in production to be on par with global standards, as labour costs rise in India.
- Focus on non-auto segments like defense, aerospace, railways etc. to diversify business and offset any disruption from electrification of autos.
- Develop capabilities for new materials like aluminum and capabilities required for disruptive technologies like additive manufacturing.
- Tap business opportunities emerging from regions looking to diversify supply chains away from China under the ‘China Plus One’ strategy.
- Skill workforce to adapt to changing technology needs like those required for electric vehicles.
At the moment, 35 per cent of India’s forgings is exported and it is expected to increase with demand picking up from North America and Europe. The industry is expected to grow at about 10-15 per cent in the next seven years.
The Indian forging industry stands at an important juncture of its next phase of growth and to connect, collaborate and acquaint to latest technology, the ForgeTech India 2023 is expected to provide the platform. With more than 600 delegates from across the globe and 50 exhibitors, the conference is to be held at Pune from 3rd to 5th November. The third edition of ForgeTech India will be held under the leadership of Vikas Bajaj, President, Association of Indian Forging Industry (AIFI), Yash J Munot, Vice President of AIFI and Convenor of Forgetech India 2023 and Asheet Pasricha, Co Convenor of ForgeTech India 2023.
