ACNielsen ORG-MARG

Situation Analysis for SME

Sector

Submitted to TERI

By

Rajkot Cluster

ACNielsen ORG-MARG

SUMMARY OF FINDINGS

• There are approximately 500 plus units in this cluster who are engaged in

foundry and forging activities.

➢ ANNUAL TURNOVER

Annual Turnover (In crores)

73

101

110

2530

42

17 15 16

49 10

72

41

22

0

10

20

30

40

50

60

70

80

90

100

110

2005-06 2006-07 2007-08

Upto 0.5 crore 0.5 crore to 1 crore 1 to 3 crores

3 to 5 crores Above 5 crores

ACNielsen ORG-MARG

➢ PRODUCTION

Annual Production (In Tonnes)

86

99

88

19

27

44

22

29 29

7 7 912 12

82 2

6

44

21

16

0

10

20

30

40

50

60

70

80

90

100

2005-06 2006-07 2007-08

Upto 100 Tonnes 100 to 200 Tonnes 200 to 300 Tonnes

300 to 500 Tonnes 500 to 1000 Tonnes 1000 to 2000 Tonnes

Above 2000 Tonnes

ACNielsen ORG-MARG

➢ ENERGY REQUIREMENTS

• CUMULATIVE FUEL USAGE

Qty consumer per annum

Number of Units using the fuel

Electricity 36871932 Units 58

Coal / Hard Coke 126384 Tonnes 151

• USAGE OF ELECTRICITY (IN UNITS CONSUMED PER ANNUM)

Usage of Electricity (In Units consumed per annum)

35%

3%5%

7%

19%

8%

5%

12%

3%

3%

Upto 20000 Units

20000 to 50000 Units

50000 to 100000 Units

100000 to 200000 Units

200000 to 300000 Units

300000 to 500000 Units

500000 to 1000000 Units

1000000 to 2000000 Units

Above 2000000 Units

Above 2000000 Units

• USAGE OF COAL / HARD COKE (IN TONNES PER ANNUM)

Usage of Coal / Hard Coke (In Liters consumed per annum)

5%

15%

27%

37%

8%2%

6%

Upto 300 Tonnes

300 to 600 Tonnes

600to 900 Tonnes

900 to 1200 Tonnes

1200 to 1500 Tonnes

1500 to 2500 Tonnes

Above 2500 Tonnes

ACNielsen ORG-MARG

➢ RAW MATERIAL REQUIREMENT

• CUMULATIVE RAW MATERIAL USAGE

Qty consumed per annum

Number of Units using the raw material

Iron Scrap 34384 Tonnes 165

Pig Iron 26773 Tonnes 165

Sand 5262 Tonnes 158

Clay 2659 Tonnes 141

Steel 29970 Tonnes 33

Manganese 37 Tonnes 22

Silicon 36 Tonnes 22

• USAGE OF IRON SCRAP (IN TONNES PER ANNUM)

Usage of Iron Scrap (In Tonnes per annum)

2%

13%

6%

22%

32%

15%3% 7%

Upto 50 Tonnes

50 to 100 Tonnes

100 to 150 Tonnes

150 to 200 Tonnes

200 to 300 Tonnes

300 to 500 Tonnes

500 to 1000 Tonnes

Above 1000 Tonnes

• USAGE OF PIG IRON (IN TONNES PER ANNUM)

ACNielsen ORG-MARG

Usage of Pig Iron (In Tonnes per annum)

4%

24%

42%

25%

1%

1%

3%

Upto 50 Tonnes

50 to 100 Tonnes

100 to 200 Tonnes

200 to 500 Tonnes

500 to 1000 Tonnes

1000 to 1500 Tonnes

Above 1500 Tonnes

• USAGE OF SAND (IN TONNES PER ANNUM)

Usage of Sand (In Tonnes per annum)

1%

40%

44%

11%

3%

1%

Upto 20 Tonnes

20 to 40 Tonnes

40 to 60 Tonnes

60 to 120 Tonnes

120 to 500 Tonnes

Above 500 Tonnes

• USAGE OF CLAY (IN TONNES PER ANNUM)

Usage of Clay (In Tonnes per annum)

1%

23%

57%

16%1%

2%

Upto 10 Tonnes

10 to 20 Tonnes

20 to 50 Tonnes

50 to 100 Tonnes

100 to 150 Tonnes

Above 150 Tonnes

ACNielsen ORG-MARG

• USAGE OF STEEL (IN TONNES PER ANNUM)

Usage of Steel (In Tonnes per annum)

9%

15%

27%

34%

3%12%

Upto 50 Tonnes

50 to 100 Tonnes

100 to 250 Tonnes

250 to 500 Tonnes

500 to 1500 Tonnes

Above 1500 Tonnes

• USAGE OF MANGANESE(IN METRES PER ANNUM)

Usage of Manganese (In Meters per annum)

5%

72%

14%

9%

Upto 1 Tonne

1 to 5 Tonnes

5 to 10 Tonnes

Above 10 Tonnes

• USAGE OF SILICON (IN TONNES PER ANNUM)

ACNielsen ORG-MARG

Usage of Silicon (In Tonnes per annum)

11%

68%

21%

Upto 0.5 Tonnes

0.5 to 75 Tonnes

Above 0.75 Tonnes

ACNielsen ORG-MARG

FIELD OBSERVATIONS

➢ Rajkot is an important foundry cluster in Gujarat. The main industrial area’s are

GIDC(Metoda), Udyog Nagar (Bhakti nagar), GIDC, Atika Industrial area,

Dhebar road & Gondal road, Khanderi.

➢ The forging units are located across Jamnagar road, Sapar, Metoda

➢ Majority of the foundry units at Rajkot produce G.I. casting, and catering to

domestic as well as export market.

➢ Segment catering (Automotive 40%, Textile 10%, Machine tools 10% Oil

Engines30%, & others 10%)

➢ Maximum units are operating since 15 to 20years and are working in general

shift of 10 to 12 hours

➢ There are certain locations wherein induction furnace is only used in areas like

Sapar due to high cost of coal /coke & secondly the units are of much larger

size.

➢ The forging units are running for maximum 1 to 2 weeks in a month as the raw

material cost is very high and lot of variation is happening on day to day basis.

➢ Except for large units which have direct customers of automotive parts -

Maruti, Escorts, TAFE, M&M i.e. 5 to8%, all other units which are having cupola

run for maximum 12 to 14 days in a month, as rest of the time goes in for

preparing the sand, mixing, preparing the required pattern, mold making.

➢ Power situation is very stable, there are hardly any power cuts and the units are

having LT/HT connection, the avg. unit rate @4.80/-.

➢ The energy cost is hardly 8 to 10% of the total production cost as compared to

the raw material cost which is as high as 70%.

➢ The process is an combination of manual and mechanized & the major

equipment is either Cupola /induction furnace, oil furnace, power press.

➢ It was observed during the discussion majority of the units which were engaged

in making products for Delhi based clients were using scrap and not pig iron.

ACNielsen ORG-MARG

Process Forging

Raw material

mixing

Melting in cupola –

1100 -1450 deg

induction furnace

Knock out /short

blasting – 1 to 15-

20hp motors

Pouring

Mixing with other

minerals – silicon

/manganese

Machining – hand

grinders

Billets – cut as per

size

Heating hard coke

+ FO

Cooling / punching Cutting / pUnching

Power Press

Use of hand tools

ACNielsen ORG-MARG

Raw materials

Press machine

ACNielsen ORG-MARG

Oil furnace

Cutting machine

ACNielsen ORG-MARG

Press machine

ACNielsen ORG-MARG

Punching machine

ACNielsen ORG-MARG

Press machine

Lathe machine

ACNielsen ORG-MARG

Cupola

Blower for cupola

ACNielsen ORG-MARG

Sand Muller

Sand mixing machine

ACNielsen ORG-MARG

Short blasting

After knock out product

ACNielsen ORG-MARG

Finished products

ACNielsen ORG-MARG

Equipments used

❖ Induction Furnace (1100oC to 1400oC), 75/200/250kw ❖ Cupola – 1100 to 1450 deg ❖ Sand Mixer – 100to 250 kg ❖ Sand muller – 150to 250 kg capacity ❖ Molding Machine ❖ Short blasting - 0.5 hp to 5 hp motors ❖ Power press/Screw press ❖ Grinding machine

Main raw materials

❖ Pig iron ❖ Iron scrap ❖ Coke/Coal ❖ Lime stone ❖ Magnesia

ACNielsen ORG-MARG

Service Provider

Equipment Shah Brothers 3/10, Bhaktinagar station plot, Opp. Post office, Rajkot-360002 0281-2462376 Indutotherm (India) Pvt. Ltd Bopal, Ahmedabd-380058 Pithuva Engg. Mauri Plot, Rajkot 0281-2388984 New Pithuwa Engg Atika Rajkot Mr. Bharat Bhai 09824217299 Shailesh Machine Tools Station Plot – I Bhaktinagar Rajkot Raw Material Mahendra Bhai Ring road highway, Rajkot 09426249715 D.N.Enterprises Jilka Garden, Bapunagar, Rajkot 0281-2234031 Natraj Sales Rajkot 09824477330 Ambika Sales Corportation, Limra Chowk, Rajkot, 0281-2465308 Premier Sales Udyog nagar, Rajkot, Mr. Nalin Bhai (9374102478) Kalyani Steel

ACNielsen ORG-MARG

Mesco Steel Oswal Minerals, Bangalore SK Steels, Bhavnagar FO Essar Oil, Jamnagar Reliance Petroleum, Jmnagar IOC, Rajkot

Association Rajkot Engineering Association Bhakti Nagar industrial estate, Rajkot-360002 0281-2362235/36/37 (Mr. Kirti Dave) Sapar Veraval Industrial Association 8-a, National Highways, Rajkot-360024 02827-253364 (Mr. Ramesh bhai Patel, President) Bamanbore Industries Association 29, J.P. Tower, Tagore road, Rajkot-360002 Ph- 0281-2466522 (Mr. Vasantbhai Manvar) Machine tools manufactuers Association 44, Shivanand Complex, Dhebar Road, Rajkot Ph- 0281-2238708 The Institute of Indian Foundrymen Aji Vasaht, Street no-10, Rajkot Ph- 0281-2387276.

ACNielsen ORG-MARG

Bankers

o Majority of the units are associated with some or the other banks for CC limits but have not taken any loans

Uco Bank Merchant Building, Satta Bazar, Rajkot, 360001 Ph-- 0281 2222869 ICICI Bank 204,Planery Arcade,Near Bombay Petrol Pump, Gondal Road, Rajkot, 360002 Ph - 0281 2443972 Bank of India Station plot, Rajkot Ph-2461834 Corporation Bank Nijanand,P B No 556, Dhebar Road, Rajkot, 360002 Ph- - 0281 2232435 Bank of Baroda Bhakti Nagar, Rajkot Ph-2264342 The Federal Bank ltd 7,Panchnath Plot,Opposite Shastri Maidan, Subhash Chowk, Rajkot, 360001 Ph - 0281 2231239 State bank of Saurastra Gondal road, Rajkot Central bank of India Bhakti Nagar, Rajkot Ph-22462195 Andhra bank Bhakti Nagar, Rajkot Ph-23819994/2363312 Bank of India Shakha,Lidhavad Chowk, Malaviya Road, Rajkot, 360005 Ph- 0281 2231751 Rajkot Nagriak Co. Op. Bank Ltd DENA BANK Oman Bhuvan,Dr. Ygnik Road,,Rajkot - 360 001