The forging industry is a major contributor to the manufacturing sector in India. The installed capacity of the Indian forging industry during 2012-13 was 3.8 million metric tonne (mmt) against which total production was 2.1 mmt. The production fell to 2 mmt in 2013-14 and is expected to increase marginally to 2.3 mmt during the current year.
Forging sector is heavily dependent on the automobile industry which consumes about 61 per cent of the total domestic sales of forging. However, due to volatile market in the last couple of years, major forging companies have come out with plans to give more focus on non-automotive markets which have high yield potential. According to market reports, the top forging company in India, Bharat Forge (BFL), entered into five high growth verticals which include oil & gas, construction and mining equipment, railways, marine engines and aerospace. Estimates indicate that BFL´s 40 per cent business comes from non-automotive sectors.
Amtek Auto, another major in forging, also has a shift in focus towards non-auto segments like mining, oil & gas, pumps and valves, construction equipment, tractors, railways, etc.
In spite of a slowdown in the recent years, the opportunity for growth is immense for Indian forging industry. While the industry is expecting a marginal growth this year, the coming years are more promising with the Government´s various initiatives on industry, especially the infrastructure sector.
One of the most important factors for growth of forging industry in future can be the ´Make in India´ initiative by the Prime Minister Narendra Modi. The industry has hailed the initiative hoping that new business opportunities will open up for the forging players not only in traditional markets but in new markets as well.
The most recent development on ´Make in India´ initiative can be the Boeing´s plan to set up a new manufacturing facility in the country. The overall trend of setting up new facilities in India for various manufacturing segments, be it construction equipment, mining equipment, commercial vehicles, off-highway vehicles, or aerospace is an opportunity for the forging companies here through their quality components and ancillary equipment to scale up business in future.