About Swastika Castal Limited

BUSINESS OVERVIEW

Swastika Castal Ltd. was established in 1996 with a focus on aluminium casting, setting up a foundry—a unique concept at the time. Today, the company operates with advanced machining, inspection, and testing facilities in India, supported by a skilled team of metallurgists and professionals.

The company supplies ready-to-use original equipment aluminium castings to reputed Indian companies and exports to Europe and the U.S.A. Its sand casting operations produce high-weight and integrated components up to 250 kgs, ideal for complex shapes and one-off productions. The gravity die casting facility manufactures components up to 80 kgs, offering superior surface finish and dimensional accuracy using reusable metal molds. In centrifugal casting, the company produces parts up to 70 kgs, ensuring exceptional density distribution and mechanical strength through rotating molds.

The company leverages a robust, customer-approved vendor base for specialized surface treatment processes, enhancing product durability and performance. It also uses outsourced X-ray and ultrasound testing to detect internal defects and subsurface flaws, ensuring non-destructive evaluation accuracy.

Swastika Castal Ltd. serves a diverse client base, including MNCs across various sectors. It supplies high-quality aluminium components to manufacturers of electrical equipment for grid transmission and distribution, ensuring compliance with industry standards through sand, gravity die, and centrifugal casting processes. It also provides critical castings to the railway industry and has recently entered the automotive sector, supplying components to leading OEMs. As of 31st March, 2025, the company have 31 employees and 48 employees on contractual basis. The Banker to the company is Axis Bank Limited.

INDUSTRY ANALYSIS

Engineering Industry in India – Snapshot

The engineering sector serves as the backbone of India’s industrial ecosystem, supporting infrastructure, construction, electricity, mining, oil & gas, steel, automotive, and consumer goods. In FY24, engineering goods exports reached US$ 109.32 billion, growing 2.1% YoY.

The sector accounts for 27% of industrial factories and 63% of foreign collaborations, fueled by India's cost competitiveness, technological capabilities, and innovation. The 100% FDI allowance under a de-licensed regime and India’s membership in the Washington Accord (2014) have further elevated the sector's global standing.

Market Highlights:

• Engineering exports in FY25 (until October): US$ 67.43 billion

• Capital goods production nearly doubled from US$ 27.58 billion (2014-15) to US$ 51.55 billion (2023-24)

• Electrical equipment industry contributes 8% to manufacturing and 1.5% to GDP

• Electrical machinery imports: US$ 12.3 billion in FY24

• Projected electrical equipment market size: US$ 125 billion by 2027, growing at 11.68% CAGR

Growth Outlook:

• Engineering R&D investment target: US$ 63 billion

• Medical device exports goal: US$ 10 billion by 2025

• Auto components industry set to become 3rd largest globally by 2025

• Engineering exports projected at US$ 200 billion by 2030

• Capital goods turnover projected at US$ 115.17 billion by 2025

Aluminium Industry – Global & Indian Landscape

Globally, primary aluminium production (Apr 2024–Jan 2025) reached 60.63 million tonnes, exceeding consumption by 0.405 million tonnes. However, a deficit of 0.230 million tonnes is expected in Q1 CY 2025.

India contributes 5.8% to global aluminium production and ranks as the 2nd largest aluminium producer worldwide. In FY 2024-25 (April–December), India’s primary aluminium production rose 1.6% YoY to 31.56 lakh tonnes.

India is also a top player in refined copper and iron ore, indicating strong momentum in infrastructure, construction, automotive, and energy sectors.

Aluminium Casting Industry – A Strategic Growth Engine

Aluminium casting involves pouring molten aluminium into engineered molds, enabling the production of complex, high-performance components for automotive, aerospace, energy, and industrial machinery.

Key Processes:

• Sand Casting: Produces large, complex shapes with intricate geometry

• Gravity Casting: Ensures high surface finish and dimensional accuracy via reusable metal molds

• Centrifugal Casting: Uses rotational force for uniform density and mechanical strength

• Pressure Die Casting: High-volume production of precision components using high-pressure injection

Market Trends:

• Global aluminium casting market is expanding rapidly due to rising EV demand and renewable energy applications

• Die casting segment dominated the market in 2022, growing at a projected CAGR of 5.4%

• Used across sectors like automobiles, electronics, toys, and industrial machinery

Indian Aluminium Casting Industry – Focus Areas

Market Growth:

• Automotive die-casting segment advancing at 8.8% CAGR (2025–2030)

• Aluminium forms 40–60% of engine and transmission assemblies in modern vehicles

Strategic Drivers:

• Stringent emission norms driving adoption of lightweight aluminium components

• India’s cost-effective skilled labor continues to attract global players like Continental and Rheinmetall

Industry Developments:

• Jaya Hind Industries extended EV partnership with KS Huayu Alutech until 2027

• Sandhar Technologies acquired Unicast Autotech's die-casting operations to scale production

Market Distribution:

• Pressure die casting holds ~60% market share

• Engine components dominate applications, driven by both ICE and EV growth

BUSINESS RISK FACTORS & CONCERNS

1. Customer Concentration Risk
A significant portion of revenue is dependent on a limited number of customers. Any loss or reduction in orders from key clients—both domestic and international (mainly Europe and the U.S.A)—could materially impact financial performance.

2. Single Manufacturing Facility Risk
Operations are confined to one facility located in Karjan, Vadodara, Gujarat. Local disruptions such as natural disasters, labor unrest, equipment failure, or utility breakdowns could severely affect production, revenue, and profitability. Extended shutdowns would have a material adverse effect on the company’s financial health.

3. Group Company Financial Distress
Swastika Metcast Private Limited, a group entity, is incurring losses and holds a negative net worth, posing potential reputational and regulatory risks that may indirectly affect stakeholder confidence in Swastika Castal Ltd.

4. Design Dependency and Margin Risk
Products are manufactured based on customer-provided specifications, with in-house design and engineering alignment. Any deviation from specifications can result in higher costs or reduced margins. While internal processes ensure quality and client approvals, the risk of competitors adopting superior technologies may affect competitive positioning.

Swastika Castal Ltd. faces business risks primarily due to its dependency on a few major customers, operation from a single manufacturing location, and exposure to group company losses. Additionally, the design-to-specification model, though robust, poses cost and efficiency risks in a competitive landscape.