Building BusinessServices

Section 21

Kolhapur (Shiroli, Gokul Shirgaon, Udyamnagar)

Kolhapur, Maharashtra · Manufacturing

Grey-iron and ductile-iron castings for automobiles, tractors and engines

sourced figures
4
main products
6
businesses to start
7

The story

In the early 1900s farmers around Kolhapur bought imported cane crushers, and local mechanics began repairing them and making spare parts. During the Second World War imports stopped, so these workshops started making oil engines and farm implements, and needed castings close by. The Kolhapur Engineering Association got land at Shivaji Udyamnagar, and from the 1960s many foundries came up at Shiroli and Gokul Shirgaon. Today most units supply castings to automobile and tractor makers, and a share is exported.

In numbers

  1. There are approximately 300 foundry units in the Kolhapur and Sangli districts, of which about 250–275 are in Kolhapur district and 20–25 in Sangli district.

    Cluster Profile Report – Kolhapur Foundry Industry (TERI for SIDBI, WB-GEF-SIDBI project) · 2012
  2. The total production of the Kolhapur foundry cluster is estimated at 600,000 tonnes per annum, about 7–8% of India's total casting production; almost 30% of production is exported.

    Cluster Profile Report – Kolhapur Foundry Industry (TERI for SIDBI, WB-GEF-SIDBI project) · 2012
  3. Cluster turnover was INR 25,000 million in 2007-08, with exports of INR 7,800 million and direct employment of 31,000; the industry also gives indirect employment to nearly 100,000 people.

    Cluster Profile Report – Kolhapur Foundry Industry (TERI for SIDBI, WB-GEF-SIDBI project) · 2012
  4. Around 70% of the foundries use induction-furnace melting and 30% use cupolas.

    Cluster Profile Report – Kolhapur Foundry Industry (TERI for SIDBI, WB-GEF-SIDBI project) · 2012

Ways in for a newcomer

  • Machining job-work for castings (CNC turning, VMC)
  • Pattern making, core shop and sand reclamation services
  • Supply of pig iron, scrap, ferro-alloys and resins
  • Testing labs: spectro analysis, metallography, radiography

Problems the cluster faces

  • Air pollution rules for cupola furnaces (red-category units)
  • High power cost for induction furnaces
  • Raw material price swings (pig iron, scrap, coke)
  • Shortage of skilled moulders and young workers

Businesses to start here

High Duty Iron Castings (Foundry) →Steel Castings (Induction Furnace Foundry) →Aluminium Castings (Foundry) →Malleable Iron Castings (Pipe Fittings and Auto Parts) →Non-Ferrous Castings Foundry (Brass, Bronze, Gun Metal) →Cast Iron Brake Drums (Small Foundry) →CNC Engineering Workshop (Precision Job Work) →

Sources (2)
  1. Cluster Profile Report – Kolhapur Foundry Industry (TERI for SIDBI, WB-GEF-SIDBI project)
  2. Brief Industrial Profile of Kolhapur District, MSME-DI (Ministry of MSME)