The global foundry market, which is considered to be the mother industry of any nation, is anticipated to grow at a compound annual growth rate of 0.54 percent to reach $209.533 billion by 2026. The foundry industry has a significant impact on the development and growth of any country. Any metal-based product can be manufactured using either a foundry or a forging process, which speaks volumes about how significant it is to the country. They are all made in foundries, including the automobile engine, the bogies of the Indian Railways, the aircraft we fly, and the agricultural tractor. Foundry will always be a mother industry as long as a nation is developing.
Ram Prakash, a mechanical engineer from IIT Delhi, founded Ratan Engineering Company (REC) in the industrial district of Bhiwadi in 1987. The early years were challenging, as with any new small MSME, It was a jobbing foundry that carried out orders from clients. The company gradually modernized its foundry, registering with BHEL in 1995.
As BHEL requirements were stringent and learned along the way, this was the firm's turning point. The manufacturers of high-quality castings and the influx of orders from outside sources, helped REC establish a reputation in the market. This also assisted in enhancing its financial situation.
REC produces a wide range of castings to suit its client's needs and has established a total capacity of more than 5000 M Tons of finished castings annually at two locations in Bhiwadi. REC produces single-piece castings in stainless steel, manganese steel, carbon steel, and various alloy
sheets of steel that weigh between 5 kg and 5000 kg. It produces radiographic-quality castings for products like valves in a range of sizes, types, and pressure ratings for industrial valves up to 2500 Pressure Class. Castings for Power Plants (Nuclear, Thermal, and Hydel), Pump Manufacturers, Auto OEMs and Tier-I & II Suppliers, the Machine Tool Industry, and General Engineering Industry are among the segments for that REC produces castings.
REC continued to focus primarily on the castings for power plants, with BHEL as a significant client. Meanwhile, the founder's son Vikram Garg and nephew Vivek Garg joined in 2009 and 2015, respectively, and contributed fresh perspectives and constructed another foundry (Unit 2) with a capacity that could be up to five times greater than the current foundry.
Under their guidance, REC has experienced a 5X growth in a New Tech of Full Mould Castings and is supplying Press Tool Dies to discerning Clients like Maruti, Tata Motors, and Honda. The machine tool industry added to the diversification by casting up to 8000 kg of metals, including carbon steel, alloy steel, grey iron, and SG iron. Moreover, REC supports exports and proudly contributes to the nation's foreign exchange earnings.
However, the power sector took a significant hit during the 2012–2013 recession. Up to 80 percent of its business was dependent on this sector, and REC discovered the value of de-risking its operations the hard way. REC made the conscious decision to diversify into other markets and industries during the difficult time, and as a result, today it primarily serves five customer segments.
No one customer accounts for more than 20 percent of the total turnover, and no one segment accounts for more than 50 percent. Currently, REC is approaching its capacity for Unit 2, and preparations for the third Unit are in the works. REC continuously seeks to benchmark itself against the global market leaders in its industry. The firm has been continuously focusing on cost optimization through automation, upgrades to plant and machinery, and investments in its manufacturing facility.
We have a well knit quality assurance department which acts as 'ears & eyes' of our discerning customers & ensures total reliability
“Going forward, we plan to enter two or three ideal scenarios that would be another two or three industry segments. We are also trying to do some kind of forward integration. Our goal is to build a machine shop so that we can enhance the value of the goods we already offer to customers.” concludes Ram Prakash, Founder of Ratan Engineering Company.
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