New Delhi — A major capacity shortage in India's mold making sector — by some estimates, about half of the molds used in the country's automotive industry are imported — is leading some of the larger domestic manufacturers to expand.
In many cases, the automotive industry is driving the investments. Mumbai-based Devu Group, for example, opened a second mold making facility in Maharashtra last year to supply the auto industry, a 150 crore Indian rupee investment ($22.4 million).
“India is a growing market, and it still imports [a] large percentage of molds,” said Chairman D.M. Sheregar, in an interview at the International Tooling Summit 2017, held Feb. 9-10 in New Delhi. “At the same time, the price poses a major challenge as China and smaller domestic companies are supplying at very competitive pricing.”
Devu, which started in 1993, makes molds for various fittings and electrical conduits, with an annual production capacity of more than 400 molds.
The new plant, which opened in August, focuses on large-size molds for the auto industry domestically and exports molds to carmakers in Russia, France, Brazil and Spain, Sheregar said.
Mold making company Mastercraft Engineers Pvt. Ltd., based in the Bangalore, is also investing to try to capture more of the automotive market, but its plans are further down the road.
It said it anticipates boosting efficiencies by opening a second facility in Bangalore, during 2018, an investment of 10 crore rupees ($1.5 million).