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, as a hub for setting up a supply chain for the Aerospace industry: QuEST Global

QuEST Global, a leading provider of outsourced engineering services and manufacturing, announced today that it has received the Government of India notification for its SEZ (Special Economic Zone) in Belgaum, Karnataka. QuEST Global has also received approval for the units that are coming up in phase 1 of the SEZ. QuEST Global’s SEZ will be a sector specific precision engineering SEZ, covering over 300 acres of land in the initial phase. This notification allows QuEST Global to lease out the land and also provide build-to-suit requirements in the SEZ to other prospects who would like to set up their business units in QuEST Global’s precision engineering SEZ. The SEZ will provide world class infrastructure in the industrial estate, concentrating mainly on aerospace and automotive related industries. Phase 1 of the SEZ will be operational by December 2008, and Phase 2 is expected to be operational by June 2009.QuEST Global SEZ has already signed up with 3 clients, namely QuEST Global Engineering, QuEST Global Manufacturing and Aerospace Processing India (API), a joint venture between QuEST and Magellan Aerospace for establishing special aerospace processing capabilities in India. At the SEZ in Belgaum, API’s facility of 17,500 sq. ft. will support activities such as chromic acid anodizing line, titanium etching, shot peen, paint and primer booth, MPI and FPI in the initial phase. QuEST Global Manufacturing will expand its existing precision machining operations that are currently set up in Bangalore and QuEST Global Engineering will set up an engineering services facility, to provide low cost engineering services. By starting operations in Belgaum, which is a Tier 3 town in India, QuEST Global Engineering is pioneering the way to ensure low cost delivery of engineering in the future also. QuEST Global has obtained specific unit approvals for all the 3 units along with a sanction for the industrial layout. “Belgaum, as a hub for setting up a supply chain for the Aerospace industry, is the perfect destination as it is ideally located in the industrial heartland of Karnataka, Maharashtra and Goa, thereby providing access to a large number of manufacturing and machining talent. It is also excellently located in terms of logistics, being just off the Golden Quadrilateral NH4 highway (Bangalore-Pune-Mumbai highway), with proximity to 3 sea ports (Goa, Karwar and Mumbai) and 3 airports (Belgaum, Hubli and Kolhapur). In addition, the presence of a number of educational institutes in the region will ensure a good supply of engineers at all levels. Along with engineering services and manufacturing, QuEST now has a precision engineering SEZ, of which are very few in the country. This move demonstrates QuEST Global’s thought leadership, which sets it apart from its competitors.” said Aravind Melligeri, Chairman & Co-founder, QuEST.
The Quest Chairman has said it very correctly and we as Belgaum should now come and make our strategic location the main aspect of our Brand Belgaum. All know about the strategic location Belgaum is in and even then, there has been no industrial development.

We need to get industrialists to come to Belgaum wherein they could save costs and I wish the local MPs and the MLAs take a active part in this and invite industrialists to Belgaum.
Source: businesswireindia

Modi riding the Nano: if BRAND BELGAUM existed

Modi riding the Nano

Budhadeb lost it, Deshmukh and Yeduraapa tried, but Modi came and he won.

Ratan Tata said: A good ending to bad Start.
What a story to the Nano? The one-lakh car is in news since it was planned (or even before that) and now when Tata has come out of Bengal and has found a new home the Nano, Gujrat.

C M Yedurrappa met Tatas asked them to come them to Dharwad, Vialsrao Deshmukh did the same thing and asked Tatas to come to Maharashtra, but Modi came and he took the Tatas with him. Brand” Gujrat” or brand” Modi” (this is a different topic) but has been successful.

On this very blog I had said, when the news of our MLA having a press conference and assuring to meet the CM and hand over a memorandum to Yedurappa to ask the Tatas to come to Belgaum, was published and I had said Nano will be out on the roads till the time some action is taken. We need fast action over and above the regular government type.

We should now rise above political motives and work for development. If BRAND “BELGAUM” existed it would have been easy for us. The Chambers of commerce and industry should develop such a forum that would approach big industrialists and make them come here. In such kind of situations, timing is very important. You will make a study, submit a memorandum, no time for all that. If you go into the market to buy something and one shop is closed you go to another, it happened here.

I am trying to work with a few individuals from Belgaum who are aspiring to develop the “Brand Belgaum”. Your support in this regard is required fully. We did not see industrial development, but our children should see it.

Come lets come closer and work together for “BRAND BELGAUM”

More on this will be posted as and when something concrete happens. Until then, you start your inputs so that the same would be shared.

Act in time, act wisely!

Belgaum did not miss the Bus

Belgaum did not miss the BusTATA Motors TELCON was planned at Belgaum but was successfully and smartly driven away to Dharwad by so called fight for North Karnataka kind of politicians from Hubli-Dhawad , but Belgaum’s legacy of being birth place of hydraulics and pioneer in Body building activity reaping its fruit in recent past.

Mohan V Kamat and Vijay R Kamat have tremendous experience in the business, who came up with their proposal for establishing the plant in Belgaum (ALMA MOTORS PVT. LTD. Survey No. 274, NH4A, Desur Village, Belgaum-Khanapur Road, Belgaum - 590 014)

The plants total capacity is of 10,000 vehicles per annum.The Group has set up two state-of-the-art manufacturing plants in Zaheerabad in Andhra Pradesh and Belgaum in Karnataka involving considerable capital outlay having a combined production capacity in excess of 10,000 buses per annum, amongst the largest in the country.The company is specializes in coach buildings of Military Luxury standard and executive coaches on Leyland chassis. The company also makes interior FRP fabs for coaches.

These are fully integrated plants having comprehensive in-house supporting facilities for fibreglass components production, manufacture of seats and pressed parts.The manufacturing operations are ably complemented by a strong Design and Engineering Centre that provides critical inputs on design engineering/analysis, prototyping, testing and subsequent engineering for mass production. The Design Centre employs state-of-the-art software platforms for effective product development from Concept to Production in the shortest time cycle.Teams of experienced and well-trained professionals having first hand exposure to international bus design and manufacturing practices operate the Design and Engineering facilities as well as the Manufacturing plants.
In years to come Belgaum will regain its glory of being the mother of ancillary units.
Original Story Inspired from the Blog Belgaumnri

Confederation of Indian Industry focus on Belgaum

Source www.chennaionline.com Link Contributed by Sundeep Sheri

Confederation of Indian Industry (CII), southern region, will focus on a ten-point agenda and implement the key recommendations of 'Vision 2025' document towards making southern region a front-runner in socio-economic development.
''Skills and employability, infrastructure development, promotion of MSMEs, development of tier II and III cities, agriculture and education were some of the thrust areas to be focused on to accelerate the growth of southern states,'' CII Chairman, southern region, B V R Mohan Reddy told newspersons here today after unveiling the theme for the year - @ 75 - The Emerging Agenda.'

Dr Reddy said CII's initative would ensure that over 25,000 school dropouts in the southern states were trained on work skills and modular employable skills.It would adopt 92 ITIs in the region for upgradation through PPP scheme and train about 5,000 faculty members on 'soft skills' through industry-university consortium across the region, he said, adding it would also work for the introduction of 'soft skills' as choice-based credit system in 15 universities in and set up a skills academy at Chennai.'' Dr Reddy said CII believes that tier II and III cities such as Hosur, Erode, Visakhapatnam, Vijayawada, Belgaum, and Kottayam were the new for investments and the growth engines of economy.

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.