The Indian forging industry is at a pivotal point as global supply-chain realignments create an opportunity for Indian companies to strengthen their position in global value chains, the Association of Indian Forging Industry (AIFI) said at its 2nd Annual Conference.
Held on the theme “New Development Trends – Impact on Forging Industry”, the conference brought together industry leaders and stakeholders to discuss the changing business environment and the opportunities and challenges facing the sector.
The discussions focused on the evolving global supply-chain landscape, the emerging China Plus One opportunity, technology and automation, productivity, manpower, rising input costs and the need to build greater resilience and competitiveness.
Industry needs to move beyond traditional models
The conference highlighted the need for Indian forging companies to move beyond traditional manufacturing and supplier models and invest in technology, automation, engineering, research and development, skilled manpower, productivity and sustainability.
The industry has a manufacturing base, engineering talent and a large domestic market that can support its emergence as a stronger global partner. However, companies will need to develop capabilities to take greater responsibility, manage uncertainty and meet increasingly demanding customer requirements.
AIFI, President and CEO, Varsha Forgings Pvt. Ltd., Yash Munot, said, “The Indian forging industry is at an important juncture, with global supply-chain realignments creating significant opportunities for India. At the same time, we must remain prepared to navigate geopolitical uncertainty, rising input costs, technology disruption and changing customer requirements.”
He said the industry’s focus should be on increasing productivity, accelerating technology adoption, developing people and strengthening innovation and sustainability.
“The opportunity before the Indian forging industry is significant, but we must build the capabilities and competitiveness required to become a stronger and more valuable partner to global customers,” Munot said.
China Plus One opens a larger opportunity
A key highlight of the conference was the address by Chief Guest Thomas Dose, Managing Director, BMW Group Plant Chennai, who spoke about India’s growing relevance as global companies seek to diversify their supply chains under the China Plus One strategy.
Geopolitical turbulence and the risks associated with dependence on a single supplier are encouraging global companies to diversify sourcing and manufacturing, he said.
India’s engineering talent, large domestic market and established forging ecosystem provide a strong base to benefit from this shift. However, the opportunity is no longer limited to manufacturing and sourcing.
Global customers are increasingly looking for suppliers that can contribute to engineering and product development while taking greater end-to-end responsibility.
BMW Group Plant Chennai, Managing Director, Thomas Dose, said, “We believe India should be the Plus One. India has engineering talent, a large market and a very capable forging industry.”
He said China Plus One should not be viewed merely as a supply opportunity, with global customers seeking deeper partnerships from Indian companies.
“Customers are looking for capable partners who can take responsibility, contribute to engineering and development, and become part of the development process. India is no longer just a supply chain; Indian companies need to be part of our development,” Dose said.
He added that the challenge was to connect the capabilities already available in India, with AIFI having an important role in facilitating this process.
Focus on the next global edge
The conference also featured a welcome address by AIFI, Chairman, Western Region and CEO, S. B. Forgetech Pvt. Ltd., Sunil Javalekar.
PwC, Executive Director, Yogesh Thakar, delivered a presentation titled “Indian Forging Industry – Next Global Edge”, providing insights into opportunities for Indian forging companies to strengthen their position in the global manufacturing ecosystem.
The programme was attended by members of the AIFI Managing Committee, industry leaders and delegates from across the forging industry.
AIFI, Vice President and MD, Super Auto Forge Pvt. Ltd., S. Ravishankar, delivered the memento presentation and vote of thanks.
Building competitiveness for global customers
The discussions reinforced the opportunity for Indian forging companies as global supply chains evolve and companies diversify their sourcing and manufacturing bases.
The sector is expected to leverage its existing manufacturing capabilities while investing in technology, engineering, skills and innovation to move higher up the global value chain.
The conference concluded with a renewed focus on strengthening the competitiveness of Indian forging companies and creating greater opportunities in domestic and global markets.
AIFI continues to provide a platform for industry stakeholders to exchange knowledge, discuss emerging trends and address issues affecting the forging sector.