Issue No. 20 3, Dated 8 November , 2016 · Brief Background of the Proposal ... oriented research organization. The work ... Divya Bhaskar, Ahmedabad, 29.10.2016

Foundry Informatics Centre, 67 TughlakabaTel: +91 11 29960601, Email: fic@indianfo

/

THE INSTITUTE OF INDIAN FOUNDRYMENTHE INSTITUTE OF INDIAN FOUNDRYMENTHE INSTITUTE OF INDIAN FOUNDRYMENTHE INSTITUTE OF INDIAN FOUNDRYMEN

Issue No.

65th IFC & IFEX 2017

For details please visit website

To register as delegate for 65th IFC please click on the link below &

http://www.ifcindia.net/registration.html

http://www.fomet.com/

http://www.porwalauto.com/

http://www.gargi-india.com/

http://inductothermindia.com

abad Institutional Area, New Delhi – 110062 foundry.org, Web: http://foundryinfo-india.org/


Issue No. 203, Dated 8th November, 2016

Bulletin Supported By:-

65th IFC & IFEX 2017 - Kolkata

For details please visit website http://www.ifcindia.net

To register as delegate for 65th IFC please click on the link below & also avail Early Bird discount

http://www.ifcindia.net/registration.html

http://www.porwalauto.com/ https://www.thermofisher.com http://www.kiswok.com/

india.com/ http://www.ehp.de http://www.foracepolymers.net/

g/

Page 1


2016

To register as delegate for 65th IFC please click avail Early Bird discount

http://www.kiswok.com/ http://www.disagroup.com

http://www.vivegha.com/ http://www.foracepolymers.net/

Foundry Informatics Centre, 67 Tughlakabad Institutional Area, New Delhi – 110062 Tel: +91 11 29960601, Email: [email protected], Web: http://foundryinfo-india.org/

Page 2

National Foundry Conclave: 25-26 November 2016 at Hotel Le Meridien, Coimbatore The Institute of Indian Foundrymen (IIF) & Confederation of Indian Industry (CII) are jointly organizing the VIII Edition of National Foundry Conclave on 25-26 November 2016 at Hotel Le Meridien, Coimbatore. Foundry conclave is an event started by IIF & CII way back in 2002, focusing on best practices in the foundry industry. The conclave is a biennial event and is the eighth in the series. This conclave is the only forum in India held exclusively for the top management of the Foundry Industry, with an opportunity to come together every two years to get an exposure of the best practices, latest technology and innovation in the foundry industry. The conclave provides excellent opportunities for the delegates to connect with top experts and leading organizations through their excellent presentation and best practices. This is a premium conclave to be attended only by top CEO’s and MD’s of the foundry industry and we expect 200 top industrialists from across the country to participate in the conclave. Delegate Fee (for IIF & CII Members) Rs. 10,000/- per participant (incl. 15% service tax) Programme agenda & registration form is attached herewith for your ready reference. For more information on the conclave, please contact the following:- Shimna P Executive Officer Confederation of Indian Industry Telefax – 0422 4044555 Email : [email protected]

MoU between DHI & Fraunhofer Department of Heavy Industries (DHI), Government of India has entered into a Memorandum of Understanding (MoU) on Technological Collaboration with Fraunhofer, Germany, under which technology development of three shortlisted clusters will be undertaken.

Awareness Programme in this regard has been scheduled by IIF in collaboration with Fraunhofer, India and DHI in Coimbatore on 18th Nov., 2016 & Belgaum on 26th Nov., 2016. Expression of interest is also invited by DHI from other clusters to form a consortium of 20-30 members to take benefit of this initiative. Interested members, groups (20-30 members) may confirm their interest in preliminary interaction with officials of DHI/ Fraunhofer India asap at [email protected] Brief Background of the Proposal Fraunhofer is Europe’s largest application-oriented research organization. The work undertaken by their researchers and developers has a significant impact on shaping technology, designing products, improve methods and techniques. The objective of the MoU is to support and to augment the “Make in India” program through increasing the innovation and technology prowess of the Indian industry. For this purpose, brainstorming workshops with industry clusters, Fraunhofer experts, and various stakeholders, e.g., representatives from DHI, will be conducted in order to identify technology gaps and to create a strategy roadmap for the manufacturing sector. The results of the workshops will build the contents of the roadmap, which will help the industry to analyze present situation, create vision, develop measures to reach targeted goals by managing resources, technologies, products and key players. The Methodology- DHI will shortlist three industry clusters across India to understand and analyze the current technology state, trends, scenarios and capabilities of the Indian industries. As a preparation phase, Fraunhofer will scan information provided by the clusters, e.g., the main activities, the most important technologies, product structure and complexity, the depth of added value or the value added chain.


Page 3

Based on the initial information, Fraunhofer ISI will conduct a short survey to get detailed information about the cluster, e.g., further questions concerning the cluster profiles or needs of the clusters related to their further development, and to customize the workshop design in advance. Furthermore, Fraunhofer will conduct analyses with regard to: 1. relevant technology trends, societal trends,

and future requirements 2. the current stage of development of the

relevant technology fields, their future potentials, challenges, and demands of the global market

3. policy instruments to promote enterprises, e.g., the design of the funding instruments of the German Federal Ministry of Education and Research or the German Federal Ministry for Economic Affairs and Energy.

The results of these analyses will be presented during the cluster and stakeholder workshops. � Total Estimated Cost – Euro 95000, i.e. INR

70,00,000 approx � 50% of the total cost to be borne by DHI � Remaining 50% to be borne by the units

collectively � Total 20-30 units can join this cluster based

initiative sharing the cost (per unit cost to be < INR 1.50 lacs)

Experts from Fraunhofer, Germany are expected to visit India in January, 2017. FCON PUNE 2016 Pune Chapter of The Institute of Indian Foundrymen (IIF) is organizing a two day National Conference on “Opportunities & Challenges for Indian Foundries” FCON-PUNE 2016 on 20th & 21st November, 2016 at Regal Hall, Hotel ‘The Pride’ University Road, Near Rahul Cinema, Pune - 411005. Apart from the technical sessions, there will be a highly informative and interactive panel discussion amongst the CEOs in the industry, to know their views relating to the conference and share their experiences for the benefit of the participants.

Representatives from General Motors Ltd., Cummins India Ltd., Neosystem Ltd., and Mahindra CIE Ltd. have already confirmed their participation in the panel discussion.

*Seats are limited. Register

Today!!*

For more information, you may please contact the following:- R. V. Apshankar - +91 98220 32712 S. A. Kshirsagar - +91 94220 02086 Mandar Tol - +91 98220 66454

Approx Major Raw Material

Prices

News Headlines

• India Containerized Shredded Scrap import prices remain stable

• Indian manganese alloy producers switch to producing ferrochrome on tight feedstock

• US scrap market remains lively post-buy week

• US FeCr: High-carbon reaches 7-month high

• Turkish scrap surges further on US, Baltic deals

• Italian scrap keeps increasing

• LME copper, aluminum higher on economic data

• LME nickel, zinc higher on demand forecasts

• Indian ferro-alloy firms oppose AD duty on coke

• Chinese ferrosilicon market sees little change

ITEMS

Price

22.10.2016

Rs./Kg (Incl.

Excise)

Price

04.11.2016

Rs./Kg (Incl.

Excise)

Pig Iron (Mumbai) 31.7 31.5 Melting Steel Scrap 23.5 23.5 CRCA Scrap 25.0 24.5

Copper Ingot 365 365

Aluminum Ingot 140 141


Page 4

IIF in Media

Nav Gujarat Samay, Ahmedabad, 29-10-2016

Divya Bhaskar, Ahmedabad, 29.10.2016


Page 5

In the News

Coking coal price explosion spreads to November Signaling that supply side tightness in seaborne coking coal rather than subsiding, is increasing the prices of prime hard coking surged further by USD 7 per tonne (2.8%) to USD 255 FOB Australia on Tuesday higher by USD 55 per tonne than Q4 benchmark of USD 200. A host of factors including mine closures and flood hit logistic issues in China, supply side disruption & geological issues in many mines in Australia & non availability from US amid higher appetite from Chinese steel mills thriving on good margins on strong steel prices have resulted in this surge. Although normalcy in operations was expected to return in short term, reverse seems to be happening as seen in continued surge. Heavy rains in coming months in Queensland could push prices to USD 300 plus levels last seen in Q1 of 2011. As a result, steel making cost, which is now facing additional burden of about USD 85(USD 200-92=108*0.8) for benchmark based buyers, could further go up by USD 100 in Jan-Mar quarter & for spot buyers, a real nightmare for steel mills as well as users. Japan's biggest steelmaker Nippon Steel & Sumitomo Metal Corp is seeking an increase in product prices of about JPY 10,000 (USD 96) per tonne from customers. Mr Kosei Shindo president of Nippon Steel said that "Given the surge in coking coal prices, we are now seeking an increase in steel product prices by JPY 10,000 a tonne (USD 96+) in total." Source: Steelguru

India Inc optimistic about rise in exports Assurance, tax and advisory firm Grant Thornton's business confidence report has revealed that policy reforms and the upcoming implementation of the Goods and Services Tax (GST) has buoyed India Inc's hopes of a rise in exports during the coming quarters. According to the latest Grant Thornton International Business Report survey, 38 per cent respondents said they expect an increase in exports.

The result shows a three point jump than the previous quarter, when 35 per cent voted for an increase in exports during Q2 2016. Only 13 per cent of the surveyed had positively responded to the expectations of a rise in exports during Q1 2016. "Ongoing policy reforms measures and the upcoming implementation of GST, coupled with the stability in Indian currency and its competitiveness, has led to an increase in optimism over rise in exports in the coming quarters," Harish HV, Partner - India Leadership team, Grant Thornton India LLP, told IANS. "GST is expected to have a positive impact as it will reduce the cost of logistics and hasten-up the movement of cargo. On the global front, the rise in manufacturing cost in China is also expected to lead to a cost advantage for Indian exports." The report further disclosed that policy reforms and upcoming implementation of GST has risen India's rank to the second position on the optimism index during the third quarter (July-September 2016). The country had ranked third during the April-June quarter after being on top globally for two consecutive quarters."High business optimism was also complemented by the rise of employment expectations. India regained its top position on this parameter," the report said. "India Inc's profitability expectations also moved up to rank three from fourth position during the third quarter." The report showed that respondents were also optimistic about an increase in Riamp;D investment. "With an increase of 19 points, 43 per cent respondents are anticipating an increase in investment in Riamp;D activities compared to 24 per cent in Q2 2016," the report added. "When it comes to investment in plant and machinery, 46 per cent respondents expect a rise." The scale and the report are prepared on the basis of the results of a quarterly conducted global business survey of 2,500 businesses across 36 economies.


Page 6

'Indian turbocharger industry to grow at CAGR of 14% during FY16-20' The market potential for Indian turbocharger industry market is expected to grow to Rs 2,600-2,800 crore by FY2020, registering CAGR of 14 percent during FY16-FY20, according to ratings agency ICRA. While volume growth could be modest at around 8-9 percent CAGR, value growth will be healthy as higher value added solution as well as new products to meet stricter regulatory requirements drive higher content-per-vehicle. On an average, for a passenger vehicle, a diesel turbocharger costs Rs 4,000 – 5,000 whereas petrol turbocharger is priced at Rs 15,000 per unit. In India, turbochargers are present in over 90 percent of diesel vehicles, though its penetration level in petrol vehicles is relatively low. In the backdrop of changing customer preference towards petrol engines in the PV segment, the domestic turbocharger industry—which is attuned to the diesel turbocharger could face some temporary readjustment pains, especially for supplies to the passenger vehicle industry. Nevertheless, increasing acceptance of turbocharged petrol engine should support demand for the turbocharger industry over the medium term. While the share of diesel vehicles in India is expected to moderate going forward, increasing share of turbocharged petrol engines as well as superior realization will drive the overall turbocharger market. Considering, gross margins of 45 percent and sizable raw material requirements (55 percent of the industry’s turnover), primarily sourced from Tier II/III ancillaries, demand for turbocharger components is expected to drive Rs 1,300-1,400 crore of revenue for Tier II/III ancillaries by FY 2020. Its gaining prominence in petrol vehicles for improved fuel efficiency and reduced emission, and higher power output. In India, small cars (< 4,000 mm) enjoy favourable tax duties as compared to larger cars. However, these small cars also have engine size (petrol < 1,200 cc, diesel <1,500 cc) restriction which ultimately limits power output. Recently, in order to

address these concerns, some OEMs have launched turbo charged petrol engines in < 4,000 mm PVs which provides superior power output as well as improved fuel efficiency. Going forward, Maruti Suzuki India Limited (MSIL) is planning to launch its turbocharged Baleno which will give 30 percent more power - about 17 percent higher fuel efficiency with a 15 percent smaller engine, ICRA said. Globally, the turbocharger market is primarily dominated by three players, namely Honeywell (34 percent), Borgwarner (29 percent) and IHI, Japan (15 percent). Other large suppliers include Mitsubishi Heavy Industries, Bosch Mahle and Cummins Turbo Technologies. Assuming optimal capacity utilisation, ancillaries could enjoy high operating margins (17 percent-20 percent) is the turbocharger manufacturing business. Considering the strong technical know-how requirements, most of the domestic market is catered to by international majors either through their step down subsidiary or JVs in India. Turbo Energy Private Limited (Turbo Energy) is one of the largest turbocharger manufacturers in the domestic market, catering to all major PV OEMs as well as CV players. Cummins by virtue of its JV (Tata Cummins Limited) with Tata Motors Limited (for supplies of M&HCV engine) is one of the largest players in the M&HCV market. As per ICRA's analysis, Turbo Energy, Honeywell Turbo Technologies India Private Limited (Honeywell) and Cummins Turbo Technologies Limited (CTT) together accounted for over 90 percent of the domestic turbocharger requirement. China and US, which together account for over 40 percent global PV sales are expected to witness strong growth in turbocharger adoption over the medium term. In India also, while ICRA expects penetration of diesel PV to stabilize at about 35 percent level over the medium term (from 40 percent plus level currently), the increasing usage of turbochargers in petrol engine will continue to support the Indian turbocharger industry.


Page 7

Commercial vehicle sales back on track in October Sales of medium and heavy trucks picked up in October after three straight months of decline, suggesting an improvement in the macroeconomic scenario as demand in the segment is seen as a barometer of economic activity. Sales of these trucks with payload capacity of at least 7.5 tonnes are estimated to have increased 12.7% from a year earlier to 23,874 in the past month, said industry sources. Stable freight rates and increased load availability have helped push sales last month, with some replacement demand also kicking in, manufacturers said. These, coupled with some pre-buying before the BS-IV emission rules come into force in April 2017, as well as government programmes drove sales, said Rajesh Kaul, head of marketing for trucks at Tata Motors, the CV industry leader. “We also saw some growth coming in due to load availability in the cement segment." Increased activity in the agriculture sector is another factor helping truck sales. “The monsoons have been good, triggering a revival in the rural economy . This is playing a significant role in spiking up demand, resulting in an increase in goods movement and consequently in truck sales. Besides, better availability of finance and lower interest rates are helping boost sales," said Vinod Aggarwal, managing director at VE Commercial Vehicles. Increased construction activity due to the government's focus on infrastructure development aided growth in the tipper space and this trend is likely to continue, said industry executives. In the CV segment, Tata Motors posted its highest monthly volumes this year -October sales, including of light vehicles, increased 15% to 30,169 units. While sales of light commercial vehicles went up 21%, volume of medium and heavy vehicles rose 9%. The upward trend was seen also in the numbers at Ashok Leyland, where sales of commercial vehicles rose 28% to 12,533 units. Sales of Eicher-branded trucks and buses increased 11.2% to 3,854 units in the domestic market.

The growth in medium and heavy CV (MHCV) sales in October has come after three consecutive months of decline. Data available with industry body Society of Indian Automobile Manufacturers (SIAM) show MHCVs sales dropped 7.6% in July and 10.8% in August. In September, the decline was sharper at 20.6%, dragging down overall sales in the commercial vehicle segment to the red at 61,621 units. Apart from sluggish demand for freight, Kaul explained: “Decline in CV sales over the last few months was primarily related to fleet operators postponing purchases, with an expectation that the newly proposed GST would bring down the prices of vehicles. This, coupled with a high base effect (from last year), resulted in slow M&HCV sales. “Commercial vehicle makers are cautiously optimistic of the momentum registered in October continuing further into the second half of the fiscal year. Kaul said: “Growth is expected to be good in comparison to H1, on account of clarity on GST rates (and) implementation of BSIV from April 2017, which will lead to higher vehicle pricing and, therefore, prebuying." However, a high base may weigh on the H2 comparison. A lot would depend on the GST rates that would come into effect in April. On Thursday, the government unveiled a four-tier framework, with rates ranging from 5-28%, but there isn't yet clarity on product-wise tax. “If the peak rate is charged for commercial vehicles, there will hardly be any price benefits on account of GST and there will then be pre-buying before BS-IV norms becomes applicable from April 2017. BS-IV will raise prices of CVs by 7-8%,“ said Aggarwal. “However, if rates are lower, consumers may postpone purchases.“ Major highlights in Auto Sector Tata Motors posts strongest car sales in four years at 28% Ashok Leyland sales up 28 per cent to 12,533 units in October Jaguar Land Rover October sales up 11% at 46,325 units Ford India sales up 8% in October


Page 8

International News..

Brembo Starts New Aluminum Foundry in Mexico Brake system specialist Brembo S.p.A. started up a new aluminum foundry near Monterrey, Mexico, a project estimated at $39 million when it was launched in 2014. While the new plant is designed to produce brake calipers for automobiles, at the event staged to mark the opening company president Alberto Bombassei also announced that Brembo will start building a second foundry at the site to produce cast iron discs for brake rotors. The Italian group produces brake systems for cars, motorcycles, and light trucks. The new iron foundry will be Brembo’s fifth disc brake operation, following on the recent start-up of an iron foundry and brake assembly complex in Homer, MI, and previous projects in Poland, China, and Italy. The 377,000-sq.ft. aluminum foundry at Escobedo, Nuevo Leon, offers melting capacity of 14,000 metric tons/year, casting, and finish machining capability for 2 million aluminum caliper units per year at full capacity. Employment at the aluminum complex will total about 500, according to the company’s statement. The new iron foundry is estimated as a $93-million project for Brembo. It indicated construction would begin adjacent to the aluminum foundry “in a few weeks,” for operation to begin late in 2017. The 269,000- sq.ft. plant will have a melting capacity of approximately 100,000 metric tons per year, and employ approximately 200 people. The output of both plants will be directed at North American, European, and Asian automakers and automotive suppliers operating in Mexico. Brembo has previously identified the North American automotive market as the most important region for its growth strategy.

Government Schemes

Support for Entrepreneurial and Managerial Development of SMEs through Incubators under National Manufacturing Competitiveness Programme (NMCP) The main objective of the scheme is to promote emerging technological and knowledge based innovative ventures that seek the nurturing of ideas from professionals beyond the traditional activities of Micro, Small & Medium Enterprises (MSMEs). Such entrepreneurial ideas have to be fostered and developed in a supportive environment before they become attractive for venture capital. Hence the need arises for incubation centres: to promote and support untapped creativity of individual innovators and to assist them to become technology based entrepreneurs. This initiative is now being taken up by the Ministry of MSME – the nodal Ministry for the development of entrepreneurship and creation of self-employment and more employment avenues. For more details please visit the following link: http://www.dcmsme.gov.in/schemes/Incubators

10.pdf

Notifications/ Circulars

Ministry of Finance, Dept. of Revenue, CBEC

Notification No.136/2016 - Customs (N.T.)

Dated Nov 03, 2016

Rate of exchange of conversion of the foreign currency with effect from 4th November, 2016 http://www.cbec.gov.in/resources//htdocs-

cbec/customs/cs-act/notifications/notfns-

2016/cs-nt2016/csnt136-2016.pdf Ministry of Finance, Dept. of Revenue, CBEC

Circular No. 48/2016-Customs, dt. 26.10.2016

Regarding clearance of import of metal scrap-Procedure http://www.cbec.gov.in/resources//htdocs-

cbec/customs/cs-circulars/cs-circulars-2016/circ48-

2016cs.pdf


Page 9

Upcoming Indian Event Upcoming International Events

Disclaimer: Although every care has been taken to ensure that information provided is correct, The Institute of Indian Foundrymen will not

be responsible for any error or omission and it does not necessarily represent official opinion of the Institute of Indian Foundrymen.

65th IFC and IFEX

2017 From.: 3rd to 5th

February, 2017

Venue: Eco Park, Kolkata

URL:

http://www.ifcindia.nethttp://www.ifcindia.nethttp://www.ifcindia.nethttp://www.ifcindia.net

3rd International

Exhibition &

Conference On Steel Industry

20th - 22nd April, 2017

Mumbai Exhibition

Center, Mumbai, India http://www.indiasteelexpo.in/

CHINA DIECASTING

2017

From.: 19th

to 21st

July, 2017

Venue: SHANGHAI

URL: HTTP://WWW.DIECASTEXPO.CN/EN/

THE 73RD WORLD

FOUNDRY

CONGRES

From.: 23rd

to 27th

Sept., 2017

Venue: Poland

URL: HTTP://WWW.73WFC.COM/

Documents

Issue No. 20 3, Dated 8 November , 2016 · Brief Background of the Proposal ... oriented research organization. The work ... Divya Bhaskar, Ahmedabad, 29.10.2016