The domestic foundry industry is aiming to double its market size to USD 32 billion and annual production capacity to 21 million tonnes (MT) over the next 5-7 years, industry body IIF said on Friday.

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The industry is also expected to attract investment of Rs 500 crore from domestic and as well as international players, Institute of Indian Foundrymen (IIF) President Devendra Jain said while announcing the '70th Indian Foundry Congress and IFEX' event.

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The three-day event will begin from April 17, 2022 in Gandhinagar, he said in a virtual media interaction.

Jain said the current market size of the Indian foundry industry is at USD 16 billion with capacity of 10.5 million tonnes per annum (MTPA). The industry employees around 5 lakh people directly and 15 lakh indirectly.

"Our aim is to double our market size to USD 32 billion in 5-7 years, double our capacity and job opportunities," he said.

Replying to a question on likely investment for the targeted capacity expansion, he said various domestic and international players are looking to set up capacities in India as "we are a growing market. We are receiving a lot of enquiries (for investment)". Investment of Rs 500 crore is expected by the players in the industry, he added.

Jain further said there are certain challenges facing the sector, including raw material prices which have shot up significantly in the past few months.

In November 2021, prices of pig iron and steel scrap stood at Rs 44 and Rs 39 per kg, respectively. In March, the rates of the two items have climbed to Rs 68 and Rs 52 a kg.

Similarly, one kg of ferro alloy silicon, which was costing Rs 140 in November, is now priced at Rs 240, he noted.

This has impacted production cost which has grown by about 50 per cent, Jain said, adding "70 percent of our production is consumed by the automobile sector." Besides, the foundry industry supplies items to industries like railways, engineering and wind energy generators, among others.

"The 70th Indian Foundry Congress and IFEX 2022 is among the first few large-scale industry events since the pandemic situation started easing. It has received an excellent response with companies from India and overseas.

"We are confident it will play the role of a catalyst in helping the foundry industry reach the pre-pandemic levels," Subodh Panchal of the Indian Foundry Congress said.