- Certifications imperative for entry into global market
- Cost increase, shrinking markets becoming challenges
- Only 2% of Indian foundries currently BSI certified
As regulatory nooses tighten in key exporting geographies it is becoming imperative for Indian foundry units with export capabilities to go for benchmarking and certifications.
At a recently-held seminar on “Access to Global Export Markets through Certifications,” organised in Kolkata by the Institute of Indian Foundrymen (IIF), it became clear that certifications are imperative in today’s scenario for accessing newer export markets.
Why the need for certification?
High global sustainability awareness: Speaking on the occasion, Mr Kiran Bhagat, Head of Product Certification, South Asia and ANZ, BSI Group Australia, emphasised that the global sustainability journey shift in terms of CBAM requirement, GHG emissions etc are making it necessary for companies to go for certifications. “At the moment, every country is very sustainability conscious. Europe, for instance, has CBAM in place. Some other country has GHG independent verification. BSI can partner with clients to develop standards for such markets,” Bhagat indicated.
BSI or the British Standards Institution is the UK’s national standards body and it offers the BSI KitemarkTM, “one of the oldest and most trusted quality marks in the world that helps address the concerns of business and consumers”. It is a registered voluntary certification mark owned and operated exclusively by BSI, and which shows “a product or service meets or exceeds the applicable and appropriate British, European, international and other standards”.
Indian foundries can comply with global regulations: BSI product certification offers solutions under broad umbrellas like sustainability, digital, quality, amongst others. It can facilitate Indian foundries meet legislative and regulatory requirements, fulfil supply chain expectations and importantly access new markets, amongst others.
Get access to newer markets: If a client wants to access newer markets, BSI we will try and rope in all the services into one to make it easier to get the European CE certificate, BSI Kitemark, European Norms Electrical Certification (ENEC) etc. Exports to the EU need a mandatory CE certification, although BSI is optional. But just CE will not suffice if an EU customer wants Kitemark as well since the latter is one level up from the CE certification. “So you are dealing with a single organization to enter into newer markets,” says Bhagat.
How ready are Indian foundries for benchmarks?
Bhagat revealed that BSI recently spoke to 200-odd clients from the Indian foundry industry who are looking at the next two-year journey in terms of around 200 new products. These companies will have to do their sustainability report assurance and BSI can help them cater to their exporting country’s requirements, it is learnt.
ISO 9000 a must: To get the Kitemark certification, a company has to be ISO 9000 certified. Most of the companies today who approach BSI are ISO 9000 certified, informed Mr Bijay Shaw, Busines Development Manager, Product Certification, East India Region, BSI India.
Cost increase a challenge: But how can the Indian foundry industry leverage this benchmarking platform in terms of gaining access to newer markets?
A top-level official from the IIF’s National Centre for Export Promotion (NCEP), told BigMint: “BSI is a good method of getting your quality certified and then promoting the product. The only challenge is that it is getting increasingly expensive. Most of the foundry units are in the medium and small categories. They are finding it difficult to race up to those levels of finances. At one time the markets were huge so we could absorb the costs. Now markets are shrinking yet the costs are going up and this is a challenge.”
Bhagat intervened that cost is a key reason why BSI wants to bring in local expertise – which can bring the cost down. “That is our strategy for the next couple of years and much will depend on how quickly we can mobilise those resources,” he said.
Only exporting units opt for certifications: Around 70% of the foundries lie in the MSME space. Only those units that have export capabilities are able to go for certifications. Those operating only in the domestic space, unless there is a huge demand, often avoid making investments in certifications – unless the government wants it.
The units catering only to the domestic market need to comply with the Bureau of Indian Standards benchmarks.
An NCEP source said: “BSI is more from the export perspective. Foundries cannot enter certain markets without these certifications. For instance, entry into Europe without CE, and the Middle East without Kitemark is impossible. One can possibly do small localised projects but wherever that country’s government is involved and it is a large project, Kitemark will become essential.”
Way ahead
The Indian foundry industry is a significant contributor to the nation’s manufacturing sector, producing over 12 million tonnes (mnt) of castings annually as of 2024, positioning India as the second-largest producer globally, following China.
The industry comprises more than 4,500 foundry units, with approximately 85% classified as small-scale, 10% as medium-scale, and 5% as large-scale enterprises. Of these, less than 10% are into exports. And within this 10%, only 15-20% are Kitemarked. So, in actuality, only around 2% of Indian foundry industry is Kitemarked.
“Most foundries want to achieve a level of excellence but the costs are a challenge and so there has to be a middle path,” the NCEP source said, adding: “Going forward, an additional 4-5% can get Kitemarked over the next few years.”
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