The Indian Automotive Industry is growing at an impressive rate since 2002-2003. The growth is sustained in 2003-04 and also in 2004-05. It is expected that the growth will continue in the coming years also.

In addition to this, India is emerging as a global manufacturing source for auto parts. Many auto OEMs are out sourcing their casting requirement to East European countries, India & China.

HFL has turned around mainly through strong management initiatives like productivity improvement focusing on high end products, cost reduction measures etc. making full use of the up trend in the market. HFL had got plans to enlarge its operations to capitalize on the growing demands for castings.

CURRENT PLANS UNDER IMPLEMENTATION :

HFL has got plans for investing Rs.32-40 crores for modernising and revamping the existing 2 lines to enhance the capacity from 48,000 MT to 55,000 MT per annum. It is also planned to put up a new hand moulding line for producing heavy castings to meet Domestic and Export.

HFL had acquired Ductron Castings Unit - Hyderabad, a unit of Ashok Leyland from 01.04.2005. DCU is a major producer of Ductile Iron castings in India and has a current capacity of 24,000 MT per annum. The plans are on the anvil to raise the capacity to 36,000 MT per annum during 2005-06.

HFLs plans of setting up a new green field foundry near Chennai for producing around 50,000 MT per annum of GI and SG Iron castings is in progress. The land selection is getting completed. The equipment finalisation and ordering process have already begun.

Cumulatively, HFL will have a total capacity of 1,40,000 MT per annum Grey Iron and SG Iron and 3000 MT of Aluminium castings by 2008 from the current level of 48,000 MT and 3000 MT of Aluminium castings. It is planned to export 30-40% of the products from these foundries.

The focus of the current investments is to ensure that the quality standards improve considerably to meet the domestic and export customers in addition to increasing delivery capabilities.

FUTURE PLANS AT THE DRAWING BOARD :

• Setting up a Modern pattern / tool making shop with CAD and Simulation facilities.
• Setting up machining facilities to meet specific customer needs.
• Setting up of Aluminium High Pressure Casting Line considering the future needs of Aluminium Cylinder Blocks for Cars.
• Development of cluster foundries to enhance the delivery capabilities.

HFL will strive to reduce the new product development time to service the customer faster.

I believe that HFL will become one of the leading foundries in this part of world with the ability of producing high end castings for international market with competitive price and enhanced quality levels.

The team in HFL and DCU are relentlessly working towards this objective