Diversification in Forging Industry

1/ Electric power trains are here and at much faster pace than expected. The traditional Auto manufacturers will be caught by surprise as non-entities are coming out with E vehicles and have already gone ahead of the curve compared to heavy weights.

2/ Induction Motors will replace conventional power train and will be powered by battery, hydrogen or solar as motors is the right solution to mobility. Eventually, hydrogen will take over Charcoal based power sources; however, Govt. of India is targeting only 40% of energy from charcoal-based sources.

3/ In India hybrids will come for some time as a stop gap arrangement and will help IC engine component manufacturers for few more years.

4/ Demand projection of forging will become half in 5 years’ time.

5/ Any component maker heavily invested in an IC engine segment needs to de risk by diversifying into other segments or components which will remain for next 15 years

Prescription

A/ Diversify into all ranges of bevel gears as bevel gear and planetary gears and differential would still be used before going to two variable speed motors take over.

B/ Manufacture gears with complete teeth with just super finishing by machining.

C/ Since dog…