Cluster Profile

Coimbatore foundries

TAMIL NADU
Coimbatore
Certificate of originality
Original work of TERI done under the project “INDIA: TERI-SDC
Partnership: Scaling up Energy Efficient Technologies in Small Enterprises
(EESE)”

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Suggested format for citation

TERI. 2015
Cluster Profile Report – Coimbatore foundries
New Delhi: The Energy and Resources Institute 10 pp.
[Project Report No. 2014IE15]

Disclaimer
This document is an output of a research exercise undertaken by TERI
supported by the Swiss Agency for Development and Cooperation (SDC) for
the benefit of MSME sector. While every effort has been made to avoid any
mistakes or omissions, TERI and SDC would not be in any way liable to any
persons/organisations by reason of any mistake/ omission in the publication.

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Contents
ACKNOWLEDGEMENTS
Overview of cluster ................................................................................................................ 1
Product types and production capacities ............................................................................ 1
Energy scenario in the cluster ............................................................................................... 2
Production process ................................................................................................................. 2
Technologies employed ......................................................................................................... 3
Energy consumption .............................................................................................................. 4
Energy saving opportunities and potential ........................................................................ 5
Major stakeholders ................................................................................................................. 7
Cluster development activities ............................................................................................. 8
Acknowledgements

TERI places on record its sincere thanks to the Swiss Agency for Development and
Cooperation (SDC) for supporting the long-term partnership project focusing on energy
intensive MSME clusters in India.

TERI team is indebted to IIF–Coimbatore Chapter, Coimbatore Industrial Infrastructure

Association (COINDIA) and Southern India Engineering Manufacturers' Association
(SIEMA) for providing support and information related to foundry units in Coimbatore
cluster. TERI extends its sincere thanks to Mr Jayakumar Ramdass, Chairman, IIF–
Coimbatore Chapter; Mr Mahendra Ramdass, Chairman, COINDIA; and Mr S Kuppusamy,
Vice President, PSG Foundry for organizing field visits and interactions with fellow
foundry-men during the study for the preparation of this cluster profile report.

Last but not least, our sincere thanks to MSME entrepreneurs and other key stakeholders in
the cluster for providing valuable data and inputs that helped in cluster analysis.
Coimbatore foundries
Overview of cluster
Coimbatore, located in the state of Tamil Nadu, is an important industrial cluster in India.
The industrial activities in the cluster developed in the 1930s, with the setting-up of many
textiles and spinning units since the local weather was suitable for yarn processing. Initially,
the metal casting industry flourished in Coimbatore to cater to the needs of the local textile
machinery manufacturers. Subsequently with the start of pump manufacturing in
Coimbatore in 1930 and electric motors in 1937, it became an important cluster for
manufacture of monoblocks, domestic pumps and subsequently submersible pumps. In
1970s, the wet-grinder was developed in Coimbatore for grinding of rice and lentils used in
local recipes. The motor and drive-system of wet-grinders use casting components. Till date,
the cluster is by far the largest producer of wet-grinders in India. Subsequently, major
automobile manufacturing units like came up in surrounding areas like Hyundai, Honda,
Leyland, Allwyn Nissan, Pricol, L&T, LMW and Mahindras. The setting-up of these
automobile units created a great demand for castings as well.

Product types and production capacities

The major raw materials used include base metals (pig iron, steel, borings, scrap and
foundry returns) and alloys (ferro-silicon, ferro-manganese, iron sulphide, silicon carbide,
etc). In addition, small quantities of other metals like copper and tin are added for special
grades and SG iron castings.

There are about 535 foundry units in

Coimbatore cluster. They are scattered both
within and outside the city. Some of larger
geographical concentration of foundry units are
Arasur, Annur, Avinashi Road, Ganapathy,
Kanuvai, Manikkampalayam, Mettupalayam,
Peelamedu and SIDCO Industrial Estate and.
These areas have been depicted in figure 1.0.

About 15 foundries are of large-scale, 70 in

medium scale and balance in small and micro
category. The production of castings of the
cluster is about 2,000 tonne per day (about 0.6
million tonne per annum). The foundry
industry employs about 10,000 direct
employees. The estimated turnover of the
foundries in the cluster is approximately Rs
3,400 crore per annum.

Several of the foundries in the cluster are of

captive type i.e. they produce castings for use in Major concentrations of foundry industry
the end-products being manufactured by the in Coimbatore
firm for different end-use applications. There

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 Cluster profile - Coimbatore foundries

are also a number of jobbing foundries which manufacture a diverse range of castings as per
market orders (refer table).

Distribution of foundries
Product Share
Automotive 15%
Pump-sets 50%
Wet-grinders 10%
Textile machinery 10%
Jobbing foundries 15%

Energy scenario in the cluster

Coke and electricity are the major sources of energy for the foundries. Electricity is sourced
from Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO) or from
wind farms operating in the state. Coke is procured from different distributors. It may be
noted that the growth of foundries in the cluster has been adversely affected due to the
power shortage in the state. Electricity utilities have put a ceiling of the maximum power
demand (called quota demand) that can be used by the industry. The quota demand has
been fixed at 80% of the average demand utilised by the industry during previous year. The
industry is required to pay 20% higher tariff if it uses electricity in the peak hours (6 am – 9
am and 6 pm – 10 pm). There is a 5% rebate on the power tariff in the off-peak hours (11 pm
– 5 am). Hence most of the foundry units in the cluster are operating in two shifts at present
(1) 8 am to 6 pm and (2) and 10 pm to 8 am. The details of major energy sources and tariffs
are shown in table.

Prices of major energy sources

Type Remarks Price
Coke Low ash Rs 23,000 - 28,000 per tonne
Energy charge : Rs 6.35 per kWh
Electricity HT I-A
Demand charge: Rs 350 per kVA per month
Energy charge : Rs 6.35 per kWh
LT III-B
Demand charge: Rs 35 per kW per month

Production process
The major steps of process are mould sand preparation, charge preparation followed by
melting, pouring, knockout and finishing. The steps are explained below.
1. Mould sand preparation. Fresh sand is mixed with bentonite and other additives and
mixed in muller to make green sand.
2. Moulding. The mould sand is pressed by machines or manually on the pattern to make
the mould. Then the upper and lower halves of mould are assembled together to prepare
the complete mould.
3. Charging. The charged metallic such as pig iron, scrap, foundry returns and other alloys
are weighted and charged in the furnace for melting.
4. Melting. The metal charge is melted in either a cupola or induction furnace.

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 Cluster profile - Coimbatore foundries

5. Pouring. After melting, the molten

metal is transferred and poured into the
moulds using ladles operated either
manually or with cranes.
6. Knock-out. The moulds are left to cool
for certain time after which the castings
are knocked-out from the mould either
manually or using a machine.
7. Finishing. The finishing operation
which involves removal of
runners/risers, shot blasting and
cleaning of castings.

A simplified process flow diagram of a

typical foundry is given in the figure.

Technologies employed
Some of the major foundry
processes/equipment are described below.

(i) Melting furnace Process flow chart

The melting of raw material is either done using
electricity in an induction furnace or coke in a cupola
(conventional or divided blast type).

Induction furnace: Induction furnaces operate on

medium frequency, three phase electrical supply.
The size of connected load of an induction furnace
varies from 150 kg (100 kW) to 5 tonne (2 MW).
However, the most common specification of
induction furnace used in foundry industry is 500 kg
(550 kW). The theoretical electrical energy required
Induction furnace
for melting one tonne of iron and heating upto
1500oC is 396 kWh. In an induction furnace, a
number of energy losses take place which increases
the specific energy consumption to about 600–950
kWh per tonne of iron.

Cupola: The capacity of cupola is generally indicated

by the internal diameter of the shaft. Majority of the
cupolas falls in the size range of 21 inch (2.2 tph) to
40 inch (6 tph). Cupolas are of two types based of
blasting mechanism i.e. conventional blast and
divided blast. The metal tapping could be
intermittent or continuous based on operation of
foundry.

Cupola

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 Cluster profile - Coimbatore foundries

(ii) Moulding and core preparation

Preparation of the mould is an important process in casting industry. The mould is divided
into two halves - the cope (upper half) and the drag (bottom half), which meet along a
parting line. Both mould halves are contained inside a box, called a flask, which itself is
divided along this parting line. The mould cavity is formed by packing sand around the
pattern (which is a replica of the external shape of the casting) in each half of the flask. The
sand can be packed manually, but moulding machines that use pressure or impact to pack
the sand are commonly used. Cores are placed inside the moulds to create void spaces.
Cores are baked in ovens which are usually electrical fired.

(iii) Sand preparation

Some foundries have installed a sand plant for sand preparation. The sand plant consists of
sand muller, sand mixer, conveyors, bucket elevators, knockout and sand sieve. Electricity is
used to run these machines. Sand mixers have typical batch size of 200 to 1000 kg. The
connected load of these mixers is in the range of 10 to 100 kW.

(iv) Air compressors

Compressed air is mainly used to operate moulding machines, pneumatic grinders, mould
cleaning and for other miscellaneous uses in a foundry. The connected load of an air
compressor size may range from a few kW (single air compressor) for a small-scale cupola
foundry unit to 55 kW (3-4 air compressors) for a medium-scale foundry having moulding
machines.

Energy consumption
Foundry uses two main forms of energy: coke and/or electricity. Melting accounts for a
major share of about 70-80% in a foundry unit. The other important energy consuming areas
include moulding, core preparation and sand preparation. The share of energy usage in a
typical small and medium foundry is given in the figure.

Compressor Lighting Miscellaneous

5% 2% 2%
Sand
preparation
6%
Mould and
core
preparation
10%

Melting
75%

Typical energy use in a foundry

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 Cluster profile - Coimbatore foundries

(i) Unit level consumption

The specific energy consumption (SEC) varies considerably in a foundry depending on the
type of furnace and degree of mechanisation. On an average, induction furnace based
foundry units consume about 1,000–1,200 kWh per tonne of good castings. Out of this, about
600–700 kWh is consumed per tonne of molten metal and the balance is consumed in other
associated operations and in rejections and wastages. In cupola, the average coke
consumption varies between 10-15% of the metal melted and 15-20% on good castings.
Typical energy consumption of an induction furnace based unit is given in table.

Typical energy consumption in induction furnace based foundry units

Production – saleable Electricity (kWh/yr) Total energy (toe/yr) Annual energy bill
castings (tonne/yr) (million INR)
500 5,50,000 47 3.9
1000 11,00,000 95 7.7
2000 22,00,000 189 15.5

(ii) Cluster level consumption

The energy consumption pattern in the cluster is given in table.

Energy consumption of the Coimbatore foundry cluster (2014-15)

Energy type Annual consumption Equivalent energy Annual energy bill
(toe) (million INR)
Electricity 460 million kWh 39,740 3000
Thermal (Coke) 32,000 tonnes 18,900 790
Total 58,640 3,790

Energy saving opportunities and potential

Some of the major energy-saving opportunities in the foundry units in the cluster are
discussed below.

(i) Replacement of existing conventional cupola with divided blast cupola

For cupola based foundries, replacement of conventionally designed cupolas with an energy
efficient „divided blast cupolas‟ (DBC) is the major option. The investment for a new DBC is
expected to pay back within one year on account of coke saving alone.

(ii) Replacement of inefficient induction furnace with efficient induction furnace

Older induction furnaces having higher SECs e.g. 750 kWh per tonne of molten metal or
higher can be replaced with new EE induction furnaces. With new furnaces, an SEC level of
about 550 kWh per tonne of molten metal can be achieved. The capital investment in the
new furnace will have an attractive payback period of less than one year.

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 Cluster profile - Coimbatore foundries

(iii) Lid mechanism for induction furnace

Most of the induction furnaces do not have a lid which results in higher heat losses due to
radiation and convection (about 4-6% of energy input). A lid mechanism helps in reducing
these losses in an induction furnaces and the payback period for installation of lids is less
than one year.

(iv) Reduction in rejections

A large number of foundries have high rejection level (6-9%), which can be brought down to
below 5% through improved process control. This can be achieved with on or marginal
investments.

(v) Cleaning of runner and risers before re-melting

Foundry returns i.e. runners and risers constitute a significant share of charge material.
Further foundry returns will have moulding sand sticking to them (2-4% by weight). If not
cleaned, this will lead to slag formation and hence higher energy consumption levels. By
using shot/tumble blast, the sand be cleared from foundry returns before returned to
induction furnace for re-melting. This would result in considerable energy saving and
would require marginal or no investments.

(vi) Providing glass wool cover for ladle

The ladles used for transfer of molten metal from furnace to moulds are usually not covered
resulting in radiation losses. The heat loss can be reduced by providing covers for ladles
which would result in energy savings and would require very low investment.

(vii) Retrofitting air compressor with variable frequency drive

During normal operation, an air compressor operated on unloading position for more than
half the time. Installation of variable frequency drive (VFD) to the air compressor will
minimise the unload power consumption. The investment for VFD is about Rs 2-3 lakh and
has a simple payback period of about 2 years.

(viii) Arresting the compressed air leakage

Compressed air is an expensive utility in a plant. However, in most cases, air leakages in
piping system are quite high (above 20%) and go unnoticed. The compressed air leakage can
be brought down to about 5% with good housekeeping practices. The foundry can save a
considerable amount of energy by controlling compressed air leakages with no investment.

(ix) Reduction in pressure setting of air compressor

The pressure setting of air compressors are often much higher than the actual air pressure
requirement in the plant. The typical unload and load pressure settings are 7.5 and 6.5 bar
respectively. Reducing the compressed air pressure as per end-use requirements will result
in high energy savings. Reduction of generation pressure by one bar can lead to energy
saving of 6%.

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 Cluster profile - Coimbatore foundries

(x) Replacement of rewound motors with energy efficient motors

Rewinding of motors result in a drop in efficiency by 3-5%. It is better to replace all old
motors which has undergone rewinding three times or more. The old rewound motors may
be replaced with EE motors (IE3 efficiency class). This would results into significant energy
savings with simple payback period of 2 to 3 years.

(xi) Replacement of inefficient pumps with energy efficient pumps

Very often the pumps used in cooling water circuit of an induction furnace are inefficient
and selection is not done on technical basis. This results in higher power consumption. The
inefficient pumps may be replaced with energy efficient pumps. The investments are paid
back in a year or two.

Major stakeholders
There are several industry associations related to the foundry industry in Coimbatore. The
major industry associations are the following:

 SIEMA (Southern India Engineering Manufacturers‟ Association): SIEMA is the only

association in Coimbatore registered under the Companies Act way back in 1952.
Most of the members are engaged in manufacture of electric motors, mono-block
pumps and submersible pumps. SIEMA is the major promoter of two other
organizations - Si‟Tarc (a NABL accredited laboratory for testing and calibration of
electrical, mechanical and chemical aspects) and COINDIA.
 CODISSIA (Coimbatore District Small Industries Association): Established in 1969,
CODISSIA has got a diversified membership base of industries including foundries.
The association has a permanent trade fair complex and was a joint promoter of the
Si‟Tarc along with SIEMA.
 IIF (The Institute of Indian Foundrymen), Coimbatore Chapter : The Coimbatore
chapter of IIF is one of the most vibrant chapters in the Southern Region. The chapter
has its own office and conference facilities.
 COSMAFAN (Coimbatore Tiny and Small Foundry Owners Association):
COSMAFAN represents the smaller castings units in the cluster. The association,
along with COINDIA, has procured about 100 acres of land in Arasur and about 50
acres of land in Manikkampalayam to establish common premises (foundry parks)
with state-of-the-art facilities. The common facilities were established under the
Industrial Infrastructure Upgradation Project which was implemented by COINDIA.
 COFIOA (The Coimbatore Foundry and Industry Owners Association): They
represent the small and micro scale foundry units in the cluster.

The „District Industries Centre‟ (DIC), Coimbatore provides several incentives to MSMEs
like the Back Ended Interest Subsidy Scheme. Under this scheme, MSMEs can avail 3%
interest subsidy (subject to a maximum of Rs 10 lakhs) on term loans loan on technology.

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 Cluster profile - Coimbatore foundries

Cluster development activities

Scientific and Industrial Testing and Research Centre (Si‟Tarc) was established in 1987 to
promote the testing, research and engineering industrial activities of this region. It was
developed with assistance from Industrial Development Bank of India (IDBI) under the
small industrial development fund. SIEMA and CODISSIA jointly developed the centre for
the cluster.

COINDIA (Coimbatore Industrial Infrastructure Association), a „special purpose vehicle‟

(SPV) created under Government of India guidelines for implementing this project under
Govt. Of India guidelines for Industrial Infrastructure Upgradation Scheme (IIUS), was
conceived and promoted by SIEMA with the support of IIF-Coimbatore Chapter,
COSMAFAN and COFIOA. The project costing about Rs 60 crores was implemented for the
growth and improvement of competitiveness and export capability of pumps, motors, and
casting manufacturers in the Coimbatore cluster. Arasur and Manikkampalayam were
developed as foundry parks with common facilities. A modern tool room and rapid
prototyping machine was also set up. The testing facilities at Si‟Tarc were also strengthened
under the project.

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About TERI
A dynamic and flexible not-for-profit organization with a global vision and a
local focus, TERI (The Energy and Resources Institute) is deeply committed to
every aspect of sustainable development. From providing environment-friendly
solutions to rural energy problems to tackling issues of global climate change
across many continents and advancing solutions to growing urban transport and
air pollution problems, TERI‟s activities range from formulating local and
national level strategies to suggesting global solutions to critical energy and
environmental issues. The Industrial Energy Efficiency Division of TERI works
closely with both large industries and energy intensive Micro Small and Medium
Enterprises (MSMEs) to improve their energy and environmental performance.

About SDC
SDC (Swiss Agency for Development and Cooperation) has been working in
India since 1961. In 1991, SDC established a Global Environment Programme to
support developing countries in implementing measures aimed at protecting the
global environment. In pursuance of this goal, SDC India, in collaboration with
Indian institutions such as TERI, conducted a study of the small-scale industry
sector in India to identify areas in which to introduce technologies that would
yield greater energy savings and reduce greenhouse gas emissions. SDC strives
to find ways by which the MSME sector can meet the challenges of the new era
by means of improved technology, increased productivity and competitiveness,
and measures aimed at improving the socio-economic conditions of the
workforce.

About SAMEEEKSHA
SAMEEEKSHA (Small and Medium Enterprises: Energy Efficiency Knowledge
Sharing) is a collaborative platform set up with the aim of pooling knowledge
and synergizing the efforts of various organizations and institutions - Indian and
international, public and private - that are working towards the development of
the MSME sector in India through the promotion and adoption of clean, energy-
efficient technologies and practices. The key partners are of SAMEEEKSHA
platform are (1) SDC (2) Bureau of Energy Efficiency (BEE) (3) Ministry of
MSME, Government of India and (4) TERI.

As part of its activities, SAMEEEKSHA collates energy consumption and related

information from various energy intensive MSME sub-sectors in India. For
further details about SAMEEEKSHA, visit http://www.sameeeksha.org

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