India - Survey of the steel forging industry

Report No. 432-IN riUL, UUr I I I* inaia Survey of the Steel Forging Industry A Backgrouind Ppner in connertion with the Appraisal of the Ninth Industrial Imports Credit April 25, 1974 Industrial Projects Department Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  Currency Equivalents 1 Indian Rupee = US$0.125 (parity in effect as in March 1974) 1 US $ = Rs 8 Time Snans The Indian Government financial year runs from April 1 to M-rch 31= Tn this repnrt t.he financial vrea?- are rwritten as, for example, 1972/73 designating the financial year from. pril I, 1972 to March 31, 1973. Longelc r inte var lq of time are writte.n nas -.0-. 1970-1972 (two year interval), 1970-1978 (8 year interval). Abbreviations and Acronjyms .L27LJJ - Bh LLz Heavy AJA. VA ' I.LD JJAILA.L DGTD - Directorate General of Technical Development w0I - Government of India HEC - Heavy Engineering Corporation RE-r - Import Replenishment Entitlement  INDIA SURVEY OF THE STEEL FORGING INDUSTRY TABLE OF CONTFNTS Page No. SUMMARY AND CONCLUSIONS ............................. i - iii I. INTRODTJCTION ........................................ 1 A. Background ..................................... 1 B. Definition ..................................... 2 II. INDUSTRY STRUCTURE ...... .............. 2 III. INDUSTRY PERFORMANCF. ................................ 6 A. Production and Capacity Utilization ... ......... 7 1. Public Sector ............................. 8 2. Private Sector ............................ 10 B. Raw Materials and Interme,liates .............. .. 11 C. Plant Onprations . ......................... 14 1. Production Planning ....................... 14 2 Maniifa tri n a =.-- -.a.....a..e.....- . .......---. 16 3. Materials Management ...................... 17 4 nTdustrial Rplatinns . = 17 5. Marketing ......................... 18 . FInance .......................... 18 7. Organization .......................... 20 D. prices, C^ost S truture nd1 Cost Comet 4 f tyveness 20 IV. EXPORTS ............................................. 23 A. Conclusn2ions .................................... 2 B. Recommendations ...... .......................... 30 2. Role of Idtr.31........... 2. Role of Industry ..................... ....... 31 3 Joint GovernmentndIC.ustry Role .. . . . ... . . .1. 31 ANNEX Plant Operations Rating System MAP T,ois reportL was preparedl byv .r. M. Tskmandler of the Inudustri'al Poet ~ L~JIJI.L WC1~ ~ ~p~LtZA1 UV ~L * L. ~.LUI I. LI LLU L