After a prolonged period of slump, Forging industry is expecting a revival in demand over the 2 years. The sale is expected to increase by 8-10 % in the FY 15.
The Forging Industry saw a drop in capacity utilization in the last 2-3 FYs due to decline in the demand from the automotive industry. However, in the FY-15, the capacity utilization will again go up. Capacity utilization is the extent to which an entity actually uses its productive capacity. Thus the resources of forging industry would be optimally used.
The demand in forging industry largely picked up especially in the commercial vehicle segment, which is the largest contributor (around 70%) in terms of revenues for the forging industry.
Demand from exports and diversification into other sectors, defense, railways, oil & gas will also drive sales up.
Hence the future looks rosy for the Forging industry in terms of the expected surge in both global and domestic demand in the FY15.