Indian forging industry is growing gradually with a number of small and medium size companies thriving in this sector. In terms of competency, India has joined the league of international players owing to the heavy investments in the segment. This is one of the reasons that Indian products are being relied on for their quality. However, Indian forging industry continues to face certain challenges like lack of long-term supply commitment from the players. Besides, the sector in India remains labor intensive and has a dearth of steel (raw material) supply.
Hindustan Forging and Engineering Works (HFEW) is a major player in this segment with competency to meet the new global demands. Inspite of the challenges faced during the international market growth, HFEW has worked its way up to the list of top companies in forging specializing in Open & Pot Die Forgings. The company, established in 1972, has used its experience and observation to become a dependable entity for the clients.
Overcoming the Challenges
The major challenge for any company in the Indian forging industry is the price of fuel and power. Another important aspect is demand-supply gap and high steel prices. Sahil Agarwal, Managing Partner of the company says, “The steel requirement of forging industry is not being met by the steel manufacturers in India. The supply of steel within the country is less than that of demand.” He also mentions, “Lack of adequate support from the government, related to duties and taxes for forging units adds to the challenge.”
The company operates with an acute focus on quality. While working for a client company, HFEW researches on the end-customers’ needs thus providing value to all parties in the supply chain. HFEW ensures to test 100 percent of their raw material supplies. Sahil mentions, “HFEW prides itself in having a very close working relationship with its customers and has a much focused market driven philosophy. Our customer attrition is extremely low, which means we have been consistently able to fulfill our customer demands in terms of time, quality and price.” “With Indian forgers started to invest in capital expansion and our capability of meeting quality product, we have got the attention of buyers across the globe, ”he adds.
Dheeraj Taneja, MD
Roadmap for Future
Envisioning the future, Sahil says, “With all our processes in place we are now focusing on capital expansion/modernization and looking for the right time to make the right capital expenses which will not only add to our production capacity but will also bring down our cost and give us capability to offer a much wider product range not only to our existing customers but also to the new ones to whom we were unable to cater because of the restrictions we had in terms of production capabilities.”
With Indian forgers started to invest in capital expansion and our capability of meeting quality product, we have got the attention of buyers across the globe
He concludes, “It’s expected that there would be large orders from the railways. Besides, the Union Government’s decision to supply clean drinking water to every village will also foster business for the sector.” He also says, “If India gets better prices in the market, it will be able to upgrade the technology. This will not only improve the quality and bring down the cost but also make their factories non-polluting with worker-friendly environments.”