luster Profile Report Kolhapur Foundry Industr

Cluster Profile
Coimbatore Foundry Cluster
TAMIL NADU
Coimbatore
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Original w ork of TERI d one und er the project ―IN DIA: TERI-SDC
Partnership: Scaling up Energy Efficient Technologies in Sm all Enterprises
(EESE)‖
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Suggested format for citation
TERI. 2015
Cluster Profile Report – Coim batore Found ry Cluster
N ew Delhi: The Energy and Resources Institute 10 pp.
[Project Report N o. 2014IE15]
Disclaimer
This d ocum ent is an output of a research exercise und ertaken by TERI
supported by the Sw iss Agency for Developm ent and Cooperation (SDC) for
the benefit of MSME sector. While every effort has been m ad e to avoid any
m istakes or omissions, TERI and SDC w ould not be in any w ay liable to any
persons/ organisations by reason of any mistake/ om ission in the publication.
Published by
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TERI
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Contents
A CKN OWLEDGEMENTS ..................................................................................................................................1
Overview of cluster ................................................................................................................ 1
Product types and production capacities ............................................................................ 1
Energy scenario in the cluster ............................................................................................... 2
Production process ................................................................................................................. 2
Technologies employed ......................................................................................................... 3
Energy consumption .............................................................................................................. 4
Energy saving opportunities and potential ........................................................................ 5
Major stakeholders ................................................................................................................. 7
Cluster development activities ............................................................................................. 8
Acknowledgements
TERI places on record its sincere thanks to the Sw iss Agency for Developm ent and
Cooperation (SDC) for supporting the long -term partnership project focusing on energy
intensive MSME clusters in Ind ia.
TERI team is ind ebted to IIF–Coim batore Chapter, Coim batore Ind ustrial Infrastructure
Association (COIN DIA) and Southern Ind ia Engineering Manufacturers' Association
(SIEMA) for provid ing support and inform ation related to found ry units in Coim batore
cluster. TERI extend s its sincere thanks to Mr Jayakum ar Ram d ass, Chairm an, IIF–
Coim batore Chapter; Mr Mahend ra Ram d ass, Chairm an, COIN DIA; and Mr S Kuppusam y,
Vice President, PSG Found ry for organizing field visits and interactions w ith fellow
found ry-m en d uring the stud y for the preparation of this cluster profile report.
Last but not least, our sincere thanks to MSME entrepreneurs and other key stakeholders in
the cluster for provid ing valuable data and inputs that helped in cluster analysis.
Coimbatore foundry cluster
Overview of cluster
Coim batore, located in the state of Tam il N ad u, is an im portant ind ustrial cluster in Ind ia.
The ind ustrial activities in the cluster d eveloped in the 1930s, w ith the setting-up of m any
textiles and spinning units since the local w eather w as suita ble for yarn processing. Initially,
the m etal casting ind ustry flourished in Coimbatore to cater to the need s of the local textile
m achinery m anufacturers. Subsequently w ith the start of pum p m anufacturing in
Coim batore in 1930 and electric m otors in 1937, it becam e an im portant cluster for
m anufacture of m onoblocks, d om estic pum ps and subsequently submersible pum ps. In
1970s, the w et-grind er w as d eveloped in Coim batore for grind ing of rice and lentils used in
local recipes. The m otor and d rive-system of w et-grind ers use casting components. Till d ate,
the cluster is by far the largest prod ucer of w et -grind ers in Ind ia. Subsequently, m ajor
autom obile manufacturing units like cam e up in surround ing areas like H yund ai, H ond a,
Leyland , Allw yn N issan , Pricol, L&T, LMW and Mahind ras. The setting-up of these
autom obile units created a great d em and for castings as w ell.
Product types and production capacities
There are about 535 found ry units in the
Coim batore cluster. They are scattered both
w ithin and outsid e the city. Som e of larger
geographical concentration of found ry units are
Arasur, Annur, Avinashi Road , Ganapathy,
Kanuvai, Manikkam palayam , Mettupalayam ,
Peelam ed u and SIDCO Ind ustrial Estate and .
These areas have been depicted in figure 1.0.
About 15 found ries are of large-scale, 70 in
m ed ium scale and balance in sm all and m icro
category. The prod uction of castings of the
cluster is about 2,000 tonne per d ay (about 0.6
m illion tonne per annum). The found ry
ind ustry
em ploys
about
10,000 d irect
em ployees. The estimated turnover of the
found ries in the cluster is approxim ately Rs
3,400 crore per annum .
Several of the found ries in the cluster are of
M ajor concentrations of foundry
captive type i.e. they prod uce castings for use in
industry in Coimbatore
the end -prod ucts being m anufactured by the
firm for d ifferent end -use applications. There
are also a num ber of jobbing found ries w hich m anufacture a d iverse range of castings as per
m arket ord ers (refer table).
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Cluster profile report - Coimbatore Foundry Cluster
D istribution of foundries
Product
Share
Au tom otive
15%
Pu m p -sets
50%
Wet-grind ers
10%
Textile m achinery
10%
Jobbing fou nd ries
15%
Energy scenario in the cluster
Coke and electricity are the m ajor sources of energy for the found ries. The m ajor raw
m aterials used includ e base m etals (pig iron, steel, borings, scrap and found ry returns) and
alloys (ferro-silicon, ferro-m anganese, iron sulphid e, silicon carbid e, etc). In ad d ition, sm all
quantities of other m etals like copper and tin are ad d ed for special grad es and SG iron
castings.
The grow th of found ries in the cluster has been ad versely affected d ue to the pow er
shortage in the state. Electricity utilities have put a ceiling of the m axim um pow er d em and
(called quota d em and) that can be used by the industry. The quota d em and has been fixed at
80% of the average d emand utilised by the ind ustry d uring previous year. The ind ustry is
required to pay 20% higher tariff if it uses electricity in the peak hours (6 am – 9 am and 6
pm – 10 pm ). There is a 5% rebate on the pow er tariff in the off-peak hours (11 pm – 5 am).
H ence m ost of the foundry units in the cluster are operating in tw o shifts at present (1) 8 am
to 6 pm and (2) and 10 pm to 8 am . The d etails of m ajor energy sources and tariffs are show n
in table.
Prices of major energy sources
Raw material
Remarks
Price
Coke
Low ash
Rs 23,000 - 28,000 p er tonne
Electricity
H T I-A
Energy charge : Rs 6.35 p er kWh
Dem and charge: Rs 350 p er kVA p er m onth
LT III-B
Energy charge : Rs 6.35 p er kWh
Dem and charge: Rs 35 p er kW p er m onth
Production process
The m ajor steps of process are m ould sand preparation, charge preparation follow ed by
m elting, pouring, knockout and finishing. The steps are explained below .
1. Mould sand preparation. Fresh sand is m ixed w ith bentonite and other ad d itives and
m ixed in m uller to m ake green sand .
2. Moulding. The m ould sand is pressed by m achines or m anually on the pattern to make
the m ould . Then the upper and low er halves of mould are assem bled together to prepare
the com plete m ould .
3. Charging. The charged m etallic such as pig iron, scrap, found ry returns and other alloys
are w eighted and charged in the furnace for m elting.
4. Melting. The m etal charge is m elted in either a cupola or ind uction furnace.
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Cluster profile report - Coimbatore Foundry Cluster
5. Pouring. After m elting, the
m olten m etal is transferred and
poured into the m ould s using
lad les operated either manually or
w ith cranes.
Sand mould preparation
Charging
M oulding
6. Knock-out. The m ould s are left to
cool for certain tim e after w hich
the castings are knocked-out from
the m ould either m anually or
using a m achine.
M elting
Pouring
Knockout
7. Finishing.
The
finishing
operation w hich involves rem oval
of runners/ risers, shot blasting
and cleaning of castings.
Fettling
H eat treatment
A sim plified process flow d iagram of
a typical found ry is given in the
figure.
Shot blasting
Final inspection and Dispatch
Technologies employed
Som e of the m ajor foundry processes/ equipm ent are d escribed below .
(i) Melting furnace
The m elting of raw m aterial is either d one using
electricity in an ind uction furnace or coke in a cupola
(conventional or d ivid ed blast type).
Induction furnace: Induction furnaces operate on
m ed ium frequency, three phase electrical supply. The
size of connected load of an ind uction furnace varies
from 150 kg (100 kW) to 5 tonne (2 MW). H ow ever, the
m ost com m on specification of ind uction furnace used
in found ry ind ustry is 500 kg (550 kW). The theoretical
electrical energy required for m elting one tonne of iron
and heating upto 1500oC is 396 kWh. In an induction
furnace, a num ber of energy losses take place w hich
increases the specific energy consum ption to about
600–950 kWh per tonne of iron.
I nduction furnace
Cupola: The capacity of cupola is generally indicated
by the internal diam eter of th e shaft. Majority of the
cupolas falls in the size range of 21 inch (2.2 tph) to 40
inch (6 tph). Cupolas are of tw o types based of
blasting m echanism i.e. conventional blast and d ivid ed
blast. The m etal tapping could be interm ittent or
continuous based on operation of found ry.
Cupola
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Cluster profile report - Coimbatore Foundry Cluster
(ii) Moulding and core preparation
Preparation of the m ould is an im portant process in casting ind ustry. The m ould is d ivid ed
into tw o halves - the cope (upper half) and the d rag (bottom half), w hich m eet along a
parting line. Both m ould halves are contained insid e a box, called a flask, w hich itself is
d ivid ed along this parting line. The m ould cavity is form ed by packing sand around the
pattern (w hich is a replica of the external shape of the casting) in each half of the flask. The
sand can be packed m anually, but m ould ing machines that use pressure or im pact to pack
the sand are com m only used . Cores are placed insid e the m oulds to create void spaces.
Cores are baked in ovens w hich are usually electrical fired .
(iii) Sand preparation
Som e found ries have installed a sand plant for sand preparation . The sand plant consists of
sand m uller, sand m ixer, conveyors, bucket elevators, knockout and sand sieve. Electricity is
used to run these m achines. Sand m ixers have typical batch size of 200 to 1000 kg. The
connected load of these m ixers is in the range of 10 to 100 kW.
(iv) Air compressors
Com pressed air is m ainly used to operate m ould ing m achines, pneum atic grind ers, m ould
cleaning and for other m iscellaneous uses in a found ry. The connected load of an air
com pressor size m ay range from a few kW (single air com pressor) for a sm all-scale cupola
found ry unit to 55 kW (3-4 air com pressors) for a m ed ium -scale found ry having m oulding
m achines.
Energy consumption
Found ry uses tw o m ain form s of energy: coke and / or electricity. Melting accounts for a
m ajor share of about 70-80% in a found ry unit. The other im portant energy consuming areas
includ e m ould ing, core preparation and sand preparation. The share of energy usage in a
typical small and m edium found ry is given in the figure.
Compressor
5%
Sand
preparation
6%
Lighting
2%
Miscellaneous
2%
Mould and
core
preparation
10%
Melting
75%
Typical energy use in a foundry
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Cluster profile report - Coimbatore Foundry Cluster
(i) Unit level consumption
The specific energy consum ption (SEC) varies consid erably in a found ry d epend ing on the
type of furnace and d egree of m echanisation. O n an average, ind uction furnace based
found ry units consum e about 1,000–1,200 kWh per tonne of good castings. Out of this, about
600–700 kWh is consum ed per tonne of m olten m etal and the balance is consum ed in other
associated operations and in rejections and w astages. In cupola, the average coke
consum ption varies betw een 10-15% of the m etal m elted and 15-20% on good castings.
Typical energy consum ption of an ind uction furnace based unit is given in table.
Typical energy consumption in induction furnace based foundry units
Production – saleable
castings (tonne/year)
Electricity (kWh/yr)
Total energy (toe/yr)
Annual energy bill
(million IN R)
500
5,50,000
47
3.9
1000
11,00,000
95
7.7
2000
22,00,000
189
15.5
(ii) Cluster level consumption
The energy consum ption pattern in the cluster is given in table.
Energy consumption of the Coimbatore foundry cluster (2014-15)
Energy type
Annual consumption
Equivalent energy
(toe)
Annual energy bill
(million IN R)
Electricity
460 m illion kWh
39,740
3000
Therm al (Coke)
32,000 tonnes
18,900
790
Total
58,640
3,790
Energy saving opportunities and potential
Som e of the m ajor energy-saving opportunities in the found ry units in the cluster are
d iscussed below .
(i) Replacement of existing conventional cupola w ith divided blast cupola
For cupola based found ries, replacem ent of conventionally d esigned cupolas w ith an energy
efficient ‗d ivid ed blast cupolas‘ (DBC) is the m ajor option. The investm ent for a new DBC is
expected to pay back w ithin one year on account of coke saving alone.
(ii) Replacement of inefficient induction furnace w ith efficient induction furnace
Old er ind uction furnaces having higher SECs e.g. 750 kWh per tonne of m olten m etal or
higher can be replaced w ith new EE ind uction furnaces. With new furnaces, an SEC level of
about 550 kWh per tonne of m olten m etal can be achieved . The capital investm ent in the
new furnace w ill have an attractive payback period of less than one year.
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Cluster profile report - Coimbatore Foundry Cluster
(iii) Lid mechanism for induction furnace
Most of the ind uction furnaces d o not have a lid w hich results in higher heat losses d ue to
rad iation and convection (about 4-6% of energy input). A lid m echanism helps in red ucing
these losses in an ind uction furnaces and the payback period for installation of lid s is less
than one year.
(iv) Reduction in rejections
A large num ber of foundries have high rejection level (6-9%), w hich can be brought d ow n to
below 5% through im proved process control. This can be achieved w ith on or m arginal
investm ents.
(v) Cleaning of runner and risers before re-melting
Found ry returns i.e. ru nners and risers constitute a significant share of charge m aterial.
Further found ry return s w ill have m ould ing sand sticking to them (2-4% by w eight). If not
cleaned , this w ill lead to slag form ation and hence higher energy consum ption levels. By
using shot/ tum ble blast, the sand be cleared from found ry returns before returned to
ind uction furnace for re-m elting. This w ould result in consid erable energy saving and
w ould require m arginal or no investm ents.
(vi) Providing glass w ool cover for ladle
The lad les used for transfer of m olten m etal from furnace to m ould s are usually not covered
resulting in rad iation losses. The heat loss can be red uced by provid ing covers for ladles
w hich w ould result in energy savings and w ould require very low investm ent.
(vii) Retrofitting air compressor w ith variable frequency drive
During norm al operation, an air com pressor operated on unload ing position for m ore than
half the tim e. Installation of variable frequency d rive (VFD) to the air com pressor w ill
m inimise the unload pow er consum ption. The investm ent for VFD is about Rs 2-3 lakh and
has a sim ple payback period of about 2 years.
(viii) Arresting the compressed air leakage
Com pressed air is an expensive utility in a plant. H ow ever, in m ost cases, air leakages in
piping system are quite high (above 20%) and go unnoticed . The com pressed air leakage can
be brought d ow n to about 5% w ith good housekeeping practices. The found ry can save a
consid erable am ount of energy by controlling compressed air leakages w ith no invest m ent.
(ix) Reduction in pressure setting of air compressor
The pressure setting of air com pressors are often m uch higher than the actual air pressure
requirem ent in the plant. The typical unload and load pressure settings are 7.5 and 6.5 bar
respectively. Red ucing the com pressed air pressure as per end -use requirem ents w ill result
in high energy savings. Red uction of generation pressure by one bar can lead to energy
saving of 6%.
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Cluster profile report - Coimbatore Foundry Cluster
(x) Replacement of rew ound motors w ith energy efficient motors
Rew inding of m otors result in a d rop in efficiency by 3-5%. It is better to replace all old
m otors w hich has und ergone rew ind ing three tim es or m ore. The old rew ound m otors m ay
be replaced w ith EE m otors (IE3 efficiency class). This w ould results into significant energy
savings w ith sim ple payback period of 2 to 3 years.
(xi) Replacement of inefficient pumps w ith energy efficient pumps
Very often the pum ps used in cooling w ater circuit of an ind uction furnace are inefficient
and selection is not d one on technical basis. This results in higher pow er consum ption. The
inefficient pum ps m ay be replaced w ith energy efficient pum p s. The investm ents are paid
back in a year or tw o.
Major stakeholders
There are several ind ustry associations related to the found ry ind ustry in Coim batore. The
m ajor ind ustry associations are the follow ing:





SIEM A (Southern India Engineering M anufacturers’ A ssociation): SIEMA is the only
association in Coim batore registered und er the Com panies Act w ay back in 1952.
Most of the m embers are engaged in m anufacture of electric m otors, m ono -block
pum ps and subm ersible pum ps. SIEMA is the m ajor prom oter of tw o other
organizations - Si‘Tarc (a N ABL accred ited laboratory for testing and calibration of
electrical, m echanical and chem ical aspects) and COIN DIA.
CODISSIA (Coimbatore District Small Industries A ssociation): Established in 1969,
CODISSIA has got a d iversified m em bership base of ind ustries includ ing found ries.
The association has a perm anent trad e fair com plex a nd w as a joint prom oter of the
Si‘Tarc along w ith SIEMA.
IIF (The Institute of Indian Foundrymen), Coimbatore Chapter : The Coimbatore chapter
of IIF is one of the m ost vibrant chapters in the Southern Region. The chapter has its
ow n office and conference facilities.
COSM A FA N (Coimbatore Tiny and Small Foundry Owners A ssociation): COSMAFAN
represents the smaller castings units in the cluster. The association, along w ith
COIN DIA, has procured about 100 acres of land in Arasur and about 50 acres of land
in Manikkam palayam to establish com m on prem ises (foundry parks) w ith state-ofthe-art facilities. The com m on facilities w ere established und er the Ind ustrial
Infrastructure Upgrad ation Project w hich w as implem ented by COIN DIA.
COFIOA (The Coimbatore Foundry and Industry Owners A ssociation): They represent the
sm all and m icro scale found ry units in the cluster.
The ‗District Ind ustries Centre‘ (DIC), Coim batore provid es several incentives to MSMEs
like the Back End ed Interest Subsid y Schem e. Und er this schem e, MSMEs can avail 3%
interest subsid y (subject to a m axim um of Rs 10 lakhs) on term loans loan on technology.
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Cluster profile report - Coimbatore Foundry Cluster
Cluster development activities
Scientific and Ind ustrial Testing and Research Centre (Si‘Tarc) w as established in 1987 to
prom ote the testing, research and engineering ind ustrial activities of this region. It w as
d eveloped w ith assistance from Ind ustrial Developm ent Bank of Ind ia (IDBI) und er the
sm all ind ustrial developm ent fund . SIEMA and CODISSIA jointly d eveloped the centre for
the cluster.
COIN DIA (Coim batore Ind ustrial Infrastructure Association), a ‗special purpose vehicle‘
(SPV) created und er Governm ent of Ind ia guidelines for im plem enting this project und er
Govt. Of Ind ia guid elines for Ind ustrial Infrastructure Upgrad ation Schem e (IIUS), w as
conceived and prom oted by SIEMA w ith the support of IIF-Coim batore Chapter,
COSMAFAN and COFIOA. The project costing about Rs 60 crores w as im plem ented for the
grow th and im provem ent of com petitiveness and export capability of pum ps, m otors, and
casting m anufacturers in the Coimbatore cluster. Arasur and Manikkam palayam w ere
d eveloped as found ry parks w ith com m on facilities. A m od ern tool room and rapid
prototyping m achine w as also set up. The testing facilities at Si‘Tarc w ere also strengthened
und er the project.
8
About TERI
A d ynam ic and flexible not-for-profit organization w ith a global vision and a
local focus, TERI (The Energy and Resources Institute) is d eeply com m itted to
every aspect of sustainable d evelopm ent. From provid ing environm ent -friend ly
solutions to rural energy problem s to tackling issues of global clim ate change
across m any continents and ad vancing solutions to grow ing urban transport and
air pollution problem s, TERI‘s activities range from form ulating local and
national level strategies to suggesting global solutions to critical energy and
environm ental issues.
The Ind ustrial Energy Efficiency Division of TERI w orks closely w ith both large
and energy intensive Micro Sm all and Medium Enterprises (MSMEs) to im prove
their energy and environm ental perform ance.
About SD C
SDC (Sw iss Agency for Developm ent and Cooperation) has been w orking in
Ind ia since 1961. In 1991, SDC established a Global Environm ent Program m e to
support d eveloping countries in im plementing m easures aim ed at protecting the
global environ m ent. In pursuance of this goal, SDC Ind ia, in collaboration w ith
Ind ian institutions such as TERI (The Energy and Resources Institute), cond ucted
a stud y of the sm all-scale ind ustry sector in India to id entify areas in w hich to
introd uce technologies that w ould yield greater energy savings and red uce
greenhouse gas em issions. SDC strives to find w ays by w hich the MSME sector
can m eet the challenges of the new era by means of im proved technology,
increased prod uctivity and com petitiveness, and m easures aim e d at im proving
the socio-econom ic cond itions of the w orkforce.
About SAMEEEKSHA
SAMEEEKSH A (Small and Medium Enterprises: Energy Efficiency Know led ge
Sharing) is a collaborative platform set up w ith the aim of pooling know led ge
and synergizing the efforts of various organizations and institutions— Ind ian
and international, public and private—that are w orking tow ard s the
d evelopm ent of the MSME sector in Ind ia through the prom otion and ad option
of clean, energy-efficient technologies and practices. The key partners are of
SAMEEEKSH A platform are (1) SDC (2) Bureau of Energy Efficiency (BEE) (3)
Ministry of MSME, Governm ent of Ind ia and (4) TERI.
As part of its activities, SAMEEEKSH A collates energy consum ption and related
inform ation from various energy intensive MSME sub-sectors in India. For
further d etails about SAMEEEKSH A, visit http:/ / w w w .sam eeeksha.org
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