UNIDO Launch Projects worth US $ 9 million to benefit Indian Industry Belgaum foundry cluster as well

Within a broader cooperation programme, the United Nations Industrial Development Organisation (UNIDO) is launching new industrial projects totaling nearly US $ 9 million to benefit industry in India. Agreements on this were signed earlier this month (on 7 August 2009) in Vienna by the Secretary of the Department of Industrial Policy and Promotion (DIPP), Shri Ajay Shankar and UNIDO Director-General Dr. Kandeh K. Yumkella.

DIPP has conceptualized an Integrated Cluster Development Programme (ICDP) wherein clusters which received infrastructure interventions under its prestigious Industrial Infrastructure Upgradation Scheme (IIUS) were targeted for Technological Interventions through Technical Cooperation services of UNIDO. The clusters selected are Auto-Component at Pithampura (Madhya Pradesh), Chennai (Tamil Nadu) and Pune (Maharashtra); Machine Tools at Bangalore (Karnataka); Foundry at Belgaum (Karnataka) and Coimbatore (Tamil Nadu); Chemicals at Ankhleswar (Gujarat) and Leather at Kanpur (Utter Pradesh).

A US $ 5.9 million Integrated Cluster Development Programme for India will focus on technology, management, skill development and the environment.

The Programme will offer turnkey solutions to each of the identified clusters to help them address technology, quality or environmental constraints, encompassing a comprehensive package of services – ranging from energy efficiency and water conservation to cleaner production and lean manufacturing. “Lowering the consumption of energy, raw materials and water in industry; reducing the waste and pollution intensity of enterprises; and improving the productivity of industries, leading to enhanced competitiveness – these are the essential underpinnings of the Integrated Cluster Development Programme. Through this flagship programme, the project will avail UNIDO’s expertise in the key areas to achieve the vision of a Green Industry”.

Project relating to Foundry clusters at Belgaum will be launched shortly. UNIDO is the only specialized agency for industrial development in the UN system and has been working with governments, business associations and private companies to solve industrial problems for more than 40 years

Belgaum foundry cluster - vision to make Belgaum Foundry Industry World Class, Internationally competitive and Environment Friendly

 

VISION:  To make Belgaum Foundry Industry World Class, Internationally competitive and Environment Friendly.

MISSION: To provide World Class Infrastructure Facilities to the Foundry Units in and around Belgaum to make them competitive and achieve excellence of

 performance.

 

Belgaum is known for its Foundry Industry. The Government of India, the Ministry of Commerce and Industries, has identified BELGAUM for creating a Cluster considering the potential of the Industry.  The objective is to strengthen the existing infrastructure and to create additional infrastructure with a view to enhance efficiency, competitiveness, raise export capabilities and make the industry environment-friendly by reducing pollution. 

This is being done to develop World Class Infrastructure under the special “INDUSTRIAL INFRASTRUCTURE UPGRADATION SCHEME “ [IIUS] of the 350 foundry units in Karnataka, one third units are located in Belgaum spread over six industrial estates producing 8000 tonnes of castings per month with export  content of Rs.45 crores.  The infrastructure bottlenecks and requirements of common facilities have hampered the proper and systematic growth of Foundry Industry in Belgaum. There is a potential for improving the quality of the product, making it cost effective and enhancing the competitiveness.

 BELGAUM FOUNDRY CLUSTER is going to be the most prestigious and useful project for BELGAUM FOUNDRYMEN AND ALLIED INDUSTRIES.

 

OBJECTIVES of BFC:

1.  To promote Green Environment through Pollution Control  and Sand Reclamation.

2. To develop a Common Website for the easy reach of the Customers.

3. To introduce Enterprise Resource Planning (ERP) package for the Cluster.

4. To provide required simulation software for foundries.

5. To create Training and Development facilities for Human Resource Development.

6. To enhance marketing effort by establishing International Marketing center and Display center.

7. To establish R & D laboratory and provide common quality testing.

8. To combine latest Technology and Human Skill for better performance.

9. To undertake any other activity incidental to the improvement of Quality of Foundry Industry and to make it internationally competitive.

10.    Up gradation of Physical Infrastructure: This special purpose scheme will focus on improvement and asphalting of 27 Kms roads in all six industrial estates. The lighting of roads and tree plantation alongside the road and the construction of 1680 KLD capacity water tank with pump house will be undertaken.

11.     Modern Communication & Information Center: The world-class communication center with convention hall, display center and installation of website giving details about foundry cluster and establishing global links.

12.    Common Effluent Treatment Plant:  Installation of Sand to plant to reclaim about 10,000 tons of sand every month protecting our natural resource and making our foundry industrial area environment friendly.

13.    Common Testing laboratory: Equipped with Spectrometer, Co-ordinate measuring machine to produce quality products of Global Standards.

14.    Common Tool Room Facility: The Cluster will have a Training Center to upgrade the knowledge of foundry men and allied industries. Vertical machining Center for pattern making and Software for 3D modeling and Simulation of castings to get first time right castings.

15.    Marketing Effort: A product center, arrangement of frequent exhibitions, meeting place for customers and expert advice on marketing, particularly export marketing.

 

BELGAUM FOUNDRY CLUSTER

Survey No. 670 (Part), Special Plot No. 1, Stockyard, Angol Industrial Estate,

Udyambag, Belgaum –590 008

Phone: +91-831-2443392        Fax : +91-831-2443392     Mobile : +91-94484-97588

E-mail: Info@bfcindia.com  

Belgaum Foundry industry in bad shape

Global meltdown or inflation, the result on the world has been staggering. The Aviation industry is in crisis and so is the Foundry industry in Belgaum.

Belgaum is recognized to be a reliable source of high precision, high volume and
economical castings. A significant percentage (almost 20%) of the foundry units at Belgaum has ISO 9000 certification and export casting.
The foundry industry at Belgaum caters to a wide variety of end-use applications Automotive/oil engines Pumps/valves Tractors/agricultural implements Food processing industry. The foundry industry at Belgaum came up primarily to cater to the needs of the automobile industry at Pune.

The Belgaum foundry industry is the first in Karnataka and the third largest in Asia. The production has decreased by 30% in last month. 8000 tonnes production has now come down to 6000 tonnes.

There are about 135 foundries in the industrial belt. More than 9000 workers work in them. The foundry industry has been seeing a tough time; the raw material prices have gone up by a whopping 200%. The demand has slowed down due to the meltdown, inflation has hit them hard, and now the industrialists say they at least need more than a year to come back on track.

To top the pie of hardships for these industrialists, now HESCOM is undertaking power cuts, which is causing much more production loss and cost escalation.

To the 9000+ workers, an additional 4000+ are involved in this industry in form of transporters, porters etc. All are feared what will happen to them if the same situation continues.
In the recent month, the prices of raw materials have seen a downtrend globally, which is one ray of light in this darkness. Globally metal and Commodity driven stocks are taking a beating, it is the case with them in India also.

Source: Esakal.com , Indianfoundry.com

Belgaum foundry cluster to open

Source Business Standard
Belgaum, a backbone for automobile industry and nerve centre for foundries in Karnataka, will soon have a foundry cluster. The work on the Belgaum Foundry Cluster (BFC) project started three years ago at an investment of close to Rs 25 crore, is nearing completion and is expected to be operational in August this year.

The project once completed will benefit 135 foundries and over 1,000 machine shops in and around Belgaum and hundreds of other units in the neighbouring towns of Hubli-Dharwad, Shimoga, Harihar and even Kolhapur, and Shinoli in Maharashtra, according to Manoj Kulkarni, chief executive officer, BFC.

The foundries from Belgaum are currently dependent on Bangalore and Pune for some of the high-end machining work. With the opening of this cluster they will make substantial savings in their production costs.
According to Kulkarni, foundry units at BFC are expected to produce 1.6 lakh tonnes of castings during the present fiscal, a growth of 60 per cent over 2007-08 and generate a combined revenue in excess of Rs 700 crore per annum, a growth of 75 per cent. The exports are expected to touch Rs 350 crore per annum, a growth of 700 per cent.

The foundry cluster is likely to generate employment to 12,000 persons, a growth of 50 per cent.

Belgaum, in north Karnataka is known for its foundry industry for decades. One third of the state's foundry units are located in six industrial estates of Belgaum. They produce 110,000 tonnes of castings per annum. However, the units were hit by the infrastructure bottlenecks and a lack of common facilities.

The project was sanctioned by the Union ministry of commerce under the Industrial Infrastructure Upgradation Scheme (IIUS) in 2003 for Rs 24.78 crore. While, the Centre sanctioned Rs 18.58 crore, the Karnataka government put in another Rs 2.49 crore while the balance is contributed by the user industries.

The objective is to strengthen the existing infrastructure and to create additional infrastructure with a view to enhance efficiency, competitiveness, raise export capabilities and make the industry environment-friendly by reducing pollution.

Under this project, a 34,000 sq ft building has been constructed at Udyambag Industrial Estate, which houses common tool room, testing laboratory, training centre, modern communication and information centre and a library. A convention centre has also been established. A new vertical machining centre for making patterns, spectrometer for conducting metal analysis and coordinate measuring machine have been installed.

The BFC has acquired five acres land on the outskirts of the city to build the common effluent treatment plant (ETP). The work on which is nearing completion. The sand reclamation plant is the first of its kind in the country as it will help reclaim 10,000 tonnes of waste sand per month. A modern sand reclamation machine has been imported from England and is being installed presently.

The cluster will also have modern software for 3D modelling, simulation and ERP for foundries will be made available to foundries. The foundry cluster will not only help improve the quality standards of material produced here but also protect ecological balance and conserve natural resources apart from growing exports, Kulkarni said.

"Our vision is to make Belgaum Foundry industry a global sourcing hub for castings and machined components by the year 2010. Despite slowdown in manufacturing sector and rising prices of steel and metal scrap we anticipate foundry units will register a healthy growth of 15-20 per cent during the current financial year," he said.

As part of the project, nearly 23 kms of road is being rebuilt in Udyambag industrial estate.
Foundry units in and around Belgaum are serving the automobile industry, general engineering and agriculture sectors. Automobile majors like Mahindra and Mahindra, Bajaj Auto, Ashok Leyland, TAFE, Caterpillar and engineering companies like Kiroskar Oil Engines Ltd, Alfa Laval, Simpsons are some of the companies sourcing castings from Belgaum. The Belgaum foundries also export to countries like the US, Germany, Belgium and West Asia.

Foundries in Crisis

The Belgaum Chapter (Southern Region) of The Institute of Indian Foundrymen (IIF) has said there is a likely threat of closing down the foundry units in Belgaum and the neighbouring Kolhapur district in Maharashtra for a fortnight “to avoid heavy losses” because of the rising prices of raw materials.
Members of the IIF marched to the Deputy Commissioner’s office here on Saturday to draw the attention of the Government towards the “crisis” confronting the sector in the country owing to the increasing prices of raw materials.
The procession was led by chairman of the IIF’s Belgaum Chapter Ram Bhandare.
In a memorandum addressed to the Joint Director of the District Industries Centre, the IIF said the foundry sector was supporting engineering exports and domestic market.
It was the fourth largest producer of castings in the world. The sector was poised to become one of the top three producers of castings in the world by 2010, as it was witnessing an export growth rate of 15 per cent every year, the memorandum said. Exports during the year 2006-07 accounted for Rs. 4,000 crore and it was expected to touch Rs. 6,000-crore mark by 2010, it said.
Belgaum tops the State in the sector with production of one lakh tonne every year, Mr. Bhandare said. By 2010, the production would touch 1.60 lakh tonne a year and exports would increase from the present Rs. 100 crore to Rs. 300 crore by then, he said. This sector had provided employment to nearly 10,000 people and another 5,000 people were expected to get employment by 2010, he said. The revenue generation was also expected to grow from the present Rs. 500 crore to Rs. 800 crore during the next three years.
But, the sector was facing a crisis of sorts owing to rising prices of pig iron, steel, coke and scrap, he said and added that the prices of these materials were increasing every month and sometimes every fortnight.
To tide over the crisis, the IIF wants the Government to ban or exercise effective control on export of iron ore by imposing heavy duty which will help in better realisation for exports of steel/casting. The practice of increasing prices of raw materials every month should be stopped immediately and import duty on coking coal/coke should be abolished to bring down the prices, it said.