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The forging industry is expected to grow at 8 per cent annually and the production is likely to touch 35.1 lakh tonnes by 2020, on the back of strong policy reforms and stable governance likely to provide the boost, according to an industry report.
“The expectation of the industry hinges on the hope that with good and stable governance, strong policy reforms coupled with an improvement in the overall economic sentiment will finally see a revival in the economy and enable the forging industry to achieve growth rate of eight per cent annually,” a report by the Association of Indian Forging Industry (AIFI) said.
Due to decline in sales of passenger cars and commercial vehicles, which are the key consumers (more than 50 per cent) of forging components, the estimated growth rate of Indian forging Industry during FY’14 was just two per cent.
At present the production during 2012—13 stood at 21.1 lakh tonnes (LT), it said.
During the year 2012—13, the installed capacity of forging entities was estimated to be around 37.7 LT.
The total turnover of the 419 entities in FY 2012—13 was estimated at Rs 19,500 crore, with an overall capacity utilisation of at around 57 per cent.
“The capacity utilisation decreased from the earlier 65 per cent in FY’12 to 57 per cent in 2012—13 due to the decline in demand from the automotive industry, which accounts for 61 per cent of total production of 21.12 LT,” it said.
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