Profile No.

: 161 NIC Code:24319

GRAVITY DIE CASTINGS

1. INTRODUCTION:

The term “gravity die casting” refers to castings made in metal molds under a gravity head. It
is known as permanent mold casting. Gravity Die Casting is a repeatable casting process used
for non-ferrous low melting temperature alloy parts, typically aluminum, zinc, magnesium and
copper alloys.

Die casting is a manufacturing process for producing accurate dimension, sharply defined,
smooth or textured-surface metal parts. It is accomplished by forcing molten metal into
reusable metal dies.

These die casting alloys play important role because of its intrinsic and versatile properties of
lightness, strength to weight ratio, corrosion resistance, electrical and thermal conductivity,
non-toxicity etc. Die cast parts of are gradually replacing steel, cast iron with high strength
alloys.

2. PRODUCT & ITS APPLICATION:

Gravity die cast components of zinc, copper magnesium and aluminum alloys components are
used for critical applications and mass produced items. Hot chamber machines are used
primarily for zinc and low melting point alloys which do not readily attack and erode metal
pots, cylinders and plungers. Advanced technology and development of new, higher
temperature materials has extended the use of this equipment for magnesium alloys.

Automobile components like pistons, gear box housings, crank cases, clutch housing, pump
bodies, etc. are made by gravity die casting. Other applications are brackets, arms and
hangers, storage tanks and fittings for chemical and marine uses, railways components,
flywheel housing and propellers, artificial limbs, ornamental hardware in building industry,
ashtrays, water jugs, art metal work, molding flasks, core drying plates and pattern castings,
rotor of ceiling fans and many other components in different fields are made of die castings.

Various alloys of aluminum, zinc, magnesium are available for different applications as per BIS,
ASTM, DIN specs that may be used by industries.

3. DESIRED QUALIFICATIONS FOR PROMOTER:

The promoter with experience in aluminum casting and having mechanical or metallurgy
engineering will be suitable for the project.

4. INDUSTRY OUTLOOK/TREND

The global die casting market was valued at USD 55.47 billion in 2015 and is projected to
touch USD 80 billion by 2022. The market is poised to grow at a CAGR of over 6.60% during
2017 to 2022. The end market for die-casting is quite diverse and well entrenched in almost all
sectors with steady increase in consumption, demand and production. The market for
magnesium, zinc etc. die-casting is expected to grow at a higher CAGR of 10.0% over the
coming 5 years.

The global market for die-castings in industrial applications is expected to grow at a faster
CAGR of 7.83% during the forecast period. Additionally, the die-casting market in the electrical
and electronic applications is expected to witness a steady growth accounting for 11% of the
global die-casting market share as of 2016.
India is progressively growing as a hub for the automobile die cast manufacturers, particularly
for aluminum, magnesium and zinc die cast auto parts. India and China are expected to boost
the global market strongly driven by the rapid growth in automobile industry. Asia-Pacific is the
largest market for die-casting and globally accounted for over 50% share in 2015.

India’s liberal economic policy and reforms is permanent is a major growth factor for the
aluminum die casting industry in the country. This is further aided by skilled, cheaper labor
force and the government incentives for small and medium scale industries.

5. MARKET POTENTIAL AND MARKETING ISSUES. IF ANY:

The auto-component industry of India has expanded by 14.3 per cent because of strong
growth in the spares or after-market sales to reach at a level of Rs 2.92 lakh crore (US$ 44.90
billion) in the year 2017.

As of today, India boasts of large no of SME units reaching to 400 die casting units, making it
one of the major suppliers of die cast parts in the global market. The SME unit clusters are
mainly located in North Indian centers like Punjab, Haryana, Delhi and West UP, in
Maharashtra around Pune and Bombay and Southern India near Bangalore, Chennai and
Hyderabad, in Gujarat around Rajkot and Surendranagar.

There are over 25 organized / large units that produce mostly pressure die cast parts per year,
while SME units are producing gravity and low pressure casting. The SME units has lions share
of the total as Indian industry consumes over 3 lakh tons of die-castings. Some of the local
players who have successfully entered the global market with their product portfolio supplying
to Cummins, Ford, General motors, John Deere, Mercedes Benz, Bosch, Toyota and
Volkswagen etc. global giants that are sourcing the aluminum die casting parts from India.
Demand from automotive sector is likely to spur growth rapidly for domestic as well as export
markets.
Considering the wide range of products having mass consumption there is good potential for
Aluminum die cast products. The entrepreneur new to this sector may begin with mass
consumed simple products produced with Gravity Die Casting.

6. RAW MATERIAL REQUIREMENTS:

Aluminum alloys of several grades viz LM-5, LM-6, LM 16; LM-24 etc. are required. Similarly
Zinc and magnesium alloys are also available. Other consumables like mold release agents,
lubricants, die coating, fluxes, ladle coatings etc. Surface treatment materials are also be
required.

7. MANUFACTURING PROCESS:

Gravity Die casting process consists of melting of alloy ingots in a furnace. The melt is poured
in steel dies through ladle or piston. In the hot chamber machine, the melt injection
mechanism is immersed in molten metal in a furnace attached to the machine. As the plunger
is raised, a port opens allowing molten metal to fill the cylinder. As the plunger moves
downward sealing the port, it forces molten metal through the goose neck and nozzle into the
die. After the metal has solidified, the plunger is withdrawn, the die opens, and the resulting
casting is ejected.

Once the part has cooled sufficiently, the die is opened. The castings are then processed to
remove excess metal of gates, risers and the fins. The part is then ground on belt grinders or
tumbled depending on size to achieve the finished cast. The component may be machined and
drilled, milled depending on requirement. These die cast components achieve close tolerances
and intricate shapes and are very cost effective.

8. MANPOWER REQUIREMENT:

The unit shall require highly skilled service persons. The unit can start from 11 employees
initially and increase to 27 or more depending on business volume.
 Monthly No of Employees
Sr. No. Type of Employees
Salary Year 1 Year 2 Year 3 Year 4 Year 5
1 Skilled Operators 18000 3 4 6 6 6

2 Semi-Skilled/ Helpers 9000 6 12 12 18 18

3 Supervisor/ Manager 25000 1 1 1 1 1

4 Accounts/ Marketing 18000 0 0 1 1 1

5 Other Staff 8000 1 1 1 1 1

TOTAL 11 18 21 27 27

9. IMPLEMENTATION SCHEDULE:

The unit can be implemented within 7 months from the serious initiation of project work.

Time Required
Sr. No. Activities
in Months
1 Acquisition of Premises 1

2 Construction (if Applicable) 2

3 Procurement and Installation of Plant and Machinery 3

4 Arrangement of Finance 2

5 Manpower Recruitment and start up 2

Total Time Required (Some Activities run
7
concurrently)

10. COST OF PROJECT:

The unit will require total project cost of Rs 119.09 lakhs as shown below:

Sr. No. Particulars In Lakhs

1 Land 20.00
2 Building 30.00
3 Plant and Machinery 35.04
4 Fixtures and Electrical Installation 3.25
 5 Other Assets/ Preliminary and Preoperative Expenses 1.50

6 Margin for working Capital 29.30

TOTAL PROJECT COST 119.09

11. MEANS OF FINANCE:

The project will require promoter to invest about Rs 51.75 lakhs and seek bank loans of Rs
67.34 lakhs based on 70% loan on fixed assets.

Sr. No. Particulars In Lakhs

1 Promoters Contribution 51.75

2 Loan Finance 67.34

TOTAL : 119.09

12. WORKING CAPITAL REQUIREMENTS:

Working capital requirements are calculated as below:

Gross Margin
Sr. No. Particulars Margin % Bank Finance
Amount Amount

1 Inventories 19.74 40 7.89 11.84

2 receivables 23.45 50 11.73 11.73

3 Overheads 1.79 100 1.79 0.00

4 Creditors 19.74 40 7.89 11.84

TOTAL 64.71 29.30 35.41

13. LIST OF MACHINERY REQUIRED:

Sr. No. Particulars UOM Quantity Rate Total Value

Main Machines/ Equipment
1 Melting Furnace for Alloys Nos. 2 300000 600000
Gravity/ low pressure Die casting machine
2 Nos. 2 950000 1900000
1000 gr / shot
3 Conveyor / Manipulator Nos. 2 75000 150000
4 Trimming Press 8T capacity Nos. 2 12000 24000
5 Reciprocating Mold spray unit Nos. 2 45000 90000
6 Surface Finish Tumbling machine 2 45000 90000
7 Polishing Belt grinder 2 15000 30000
8 Heat Treatment oven 1 180000 180000
9 Lathe machine 3 55000 165000
10 Drilling / Milling machine 2 40000 80000
subtotal : 3309000
Tools and Ancillaries
1 Die Repair tools and Grinders LS 1 120000 120000
2 Misc. tools Trolleys etc. LS 1 75000 75000
subtotal : 195000

Fixtures and Elect Installation

Storage racks LS 1 25000 25000

Other Furniture LS 1 20000 20000
Telephones/ Computer LS 1 40000 40000
Electrical Installation LS 1 240000 240000
subtotal : 325000
Other Assets/ Preliminary and
LS 1 150000 150000
Preoperative Expenses
TOTAL PLANT MACHINERY COST 3979000

All the machines and equipment are available from local manufacturers. The entrepreneur
needs to ensure proper selection of product mix and proper type of machines and tooling to
have modern and flexible designs. It may be worthwhile to look at reconditioned imported
machines, dies and tooling. Some of the machinery and dies and tooling suppliers are listed
here below:
1. Techno Machines
Chikkanahalli Road, Opp. Shahi Exports (Unit No 6),
Near Annapoorneshwari Temple, Bommanahalli,
BENGALURU-560 068, INDIA

2. S. S. Engineering Works
Ajit Khanna(Proprietor)
Plot No. 100, Sector 6 IMT Manesar, Gurgaon - 122050, Haryana, India

3. Taurus Private Ltd Co

No. 24, D 2 / E 3, Kiab Industrial, Area At Pivele
Kiab Industrial Area, Bengaluru – 560100 Karnataka, India

4. Micro Engineering Works;

No. 6/140, Gandhi Nagar, Nallampalayam Road Nanjai Gounden, Pudur, G. N. Mills
Post, Coimbatore - 641029, Tamil Nadu, India

5. S. G. Profile
Plot No. 201/1, Gala No. 56, Morya Industrial Estate, MIDC, Bhosari, Bhosari Midc, 
Pune-411026, Maharashtra, India

Other well known machine are ACME TOOLINGS, Ace Manufacturing Systems Ltd., Batliboi Ltd.
Mumbai, Bharat Fritz Werner Ltd., HMT Machine Tools Ltd., Advani Oerlikon Ltd, Bombay,
Lakshmi Machine Works Ltd., Lokesh Machines Ltd., Praga Tools Ltd., Toolcraft Systems Pvt.
Ltd.

The above list of machine supplier is illustrative. There are many machinery, dies and tools
suppliers and consultants at several industrial clusters all over India where you may find
suppliers of services and machinery for a chosen product mix. Other well-known machine
manufacturers can be searched from directories/ internet.
14. PROFITABILITY CALCULATIONS:

Year Wise estimates

Sr. No. Particulars UOM
Year 1 Year 2 Year 3 Year 4 Year 5
1. Sales Rs Lakhs 281.40 361.80 482.40 562.80 643.20
Raw Materials & Other Direct
2. Rs Lakhs 236.84 304.51 406.02 473.69 541.36
Inputs
3. Gross Margin Rs Lakhs 44.56 57.29 76.38 89.11 101.84

4. Overheads Except Interest Rs Lakhs 12.02 12.02 12.02 12.02 12.02

5. Interest Rs Lakhs 9.43 9.43 9.43 9.43 9.43

6. Depreciation Rs Lakhs 8.37 8.37 8.37 8.37 8.37

7. Net Profit Before Tax Rs Lakhs 14.73 27.46 46.56 59.29 72.02

The basis of profitability calculation:

The Unit will have capacity of 300 MT of gravity castings per year of assorted types/ designs.
The sales prices of die cast parts range from Rs 150 to Rs 400 per kg depending on type,
metal, alloy composition, and volumes. The raw material cost of is ranging from 130 to 250
per kg depending on alloy grades. The material requirements are considered with wastage/
scrap/burnouts etc. of 8 % of finished products as most of generated scrap is reused. The
unusable scrap is sold at @ Rs 15 ~ 30 per Kg. and the income of same is added. Energy
Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65 per liter. The
depreciation of plant is taken at 10 % and Interest costs are taken at 14 -15 % depending on
type of industry.

15. BREAK EVEN ANALYSIS

The project is can reach breakeven capacity at 23.43 % of the installed capacity as depicted
here below:
 Sr. No. Particulars UOM Value

1 Sales at Full Capacity Rs Lakhs 804.00

2 Variable Costs Rs Lakhs 676.70

3 Fixed Cost incl. Interest Rs Lakhs 29.83

% of Inst
4 Break Even Capacity 23.43
Capacity

16. STATUTORY/ GOVERNMENT APPROVALS

The unit will require state industry unit registration with District Industry center. No other
procedures are involved. For export, IEC Code and local authority clearances. The industry
registration and approval for factory plan, safety etc. is required as per factory inspectorate
and labor laws. Other registration are as per Labor laws are ESI, PF etc. Before starting the
unit will also need GST registration for procurement of materials as also for sale of goods. As
such there is no pollution control registration requirements, however the unit will have to
ensure safe environment through installation of chimney etc. as per rules. Solid waste disposal
shall have to meet the required norms. Entrepreneur may contact State Pollution Control
Board where ever it is applicable.

17. BACKWARD AND FORWARD INTEGRATION

The machines and equipment offer scope for diversification in to producing other consumer
and industrial parts/ components and parts. The unit can utilize the spare capacities of furnace
and machining capabilities. As such there is not much scope for organic backward or forward
integration. The entrepreneur needs to ensure proper selection of product mix and also be
careful in maintaining key product parameters in terms of dimensions, tolerances and
geometric profiles along with final weights of products. The material selection, processes
including heat treatment and achievement of final properties are key to quality and success of
project.
18. TRAINING CENTERS/COURSES

There are no specific training centers for production technology. However foundry technology
can be obtained by joining as apprentice in foundry units. The Prototype Development Centers
can provide some assistance and for foundry technology, casting, machining, dies and Tools
development, courses run by centers of excellence viz Indo German Tool Room at
Ahmedabad, Rajkot, Chennai, etc. shall be helpful.

The most important scope of learning is in new product design and development by study of
the new product designs, product range, features and specifications of leading Brands /
competitors across the world by scanning the Internet and downloading data from websites of
Viz. North American, Europe, China etc. markets.

Udyamimitra portal (link: www.udyamimitra.in) can also be accessed for hand-holding

services viz. application filling / project report preparation, EDP, financial Training, Skill
Development, mentoring etc.

Entrepreneurship program helps to run business successfully is also available from Institutes
like Entrepreneurship Development Institute of India (EDII) and its affiliates all over India.

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts.   However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed therein. 
Further the same have been given by way of information only and do not carry any
recommendation.