Interview

Positive momentum

The forging industry has always been a major growth driver of the Indian manufacturing sector. The Association of Indian Forging Industry (AIFI), plays a major role in the success of the automobile, power, and engineering sectors in the country. AIFI encourages proactive dialogue between the industry and the government for the benefit of all stakeholders. India is the second-largest producer of forgings globally, next to China. Vikas Bajaj, President, AIFI shared his views and plans with S M Boothem.

the government for the benefit of all stakeholders. India is the second-largest producer of forgings globally, next to China. Vikas Bajaj, President, AIFI shared his views and plans with S M Boothem.

Tell us about AIFI and its activities The AIFI is a pivotal organisation for forging firms in India. Established in 1965, it aims to advance the interests of the forging industry within India’s manufacturing landscape. AIFI promotes trade, technological advancement, and global competitiveness through various initiatives. It facilitates access to crucial information, collaborates with vendors, addresses trade barriers, and advocates for the adoption of the latest technology. AIFI organises workshops, seminars, and
training programs to disseminate knowledge about technological advancements.

With manufacturing activity gaining momentum across sectors, how will the forging industry benefit from this positive outlook?

Forging is indispensable to the success of the manufacturing industry due to its unique ability to enhance material properties, provide cost-effective solutions, and meet the stringent demands of various applications. The positive momentum in manufacturing across sectors in India bodes well for the forging industry, offering increased demand for forged components in automotive, aerospace, construction, and power generation. This surge presents growth opportunities for forging firms. India’s position as a manufacturing hub is strengthened, promoting global competitiveness for the forging industry through improved standards and collaboration opportunities with other sectors and international partners.

How competitive is the Indian forging industry, in terms of products, innovation, and technological advancements?

The Indian forging industry is increasingly competitive, particularly in terms of products, innovation, and technological advancements. In response to market demands and evolving customer needs, forging firms are continuously diversifying their product offerings and investing in innovation. Technological advancements are being adopted to enhance manufacturing processes, improve product quality, and increase efficiency. While challenges such as cost pressures and global competition exist, the Indian forging industry strives to maintain its competitiveness by leveraging advancements in technology and innovation to stay abreast of international standards and meet the demands of a dynamic market.

Challenges and opportunities of the industry in the emerging market

The forging industry encounters several critical challenges that could affect its growth and operations. Fluctuations in raw material costs, particularly steel and alloys, pose a risk to the industry’s cost structure and competitiveness. High energy expenses, essential for the forging process, can strain profitability amid rising energy costs. Adherence to stringent environmental regulations necessitates investments in cleaner manufacturing practices, potentially impacting operational expenses. Shortages in skilled labour present hurdles to maintaining production efficiency and quality, while the adoption of advanced technologies like automation requires substantial investments and careful implementation to avoid disruptions. The increase in freight costs for exports has also been significant and reduces the cost competitiveness of the industry. Addressing these challenges will be crucial for the forging industry to sustain its growth trajectory and remain competitive in the evolving market landscape.

 The industry is poised to capitalise on significant opportunities across various industrial sectors. In automotive, the demand for lightweight, high-strength components positions forging as a competitive choice. The defence sector’s promising outlook, driven by the ‘Make in India’ initiative and restrictions on defence spares imports, underscores forging’s role in supplying superior strength components. Additionally, in railways and renewable energy, forging companies can contribute essential components.

What are the forging industry’s expectations from the government?

The forging industry looks to the government for support in addressing key challenges. This includes stabilising raw material costs, mitigating energy expenses, and providing guidance on complying with environmental regulations. Additionally, the industry seeks initiatives to develop skilled labour through vocational training programs and educational reforms. Government support for technological adaptation, including incentives for advanced manufacturing technologies, is also crucial. u