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Rail Wheel manufacture made cheaper in India than import from China

Splitting of a freshly cast wheel at the furnace of Rail Wheel Factory in Yelahanka. Credit: DH Photo

(pic) Splitting of a freshly cast wheel at the furnace of Rail Wheel Factory in Yelahanka Bangalore. Credit: DH Photo

The Yelahanka Bangalore Rail Wheel Factory (RWF) has cut its manufacturing cost and is offering its products at a rate unmatched by its overseas competitors.

RWF’s managing director Rajiv Kumar Vyas said automation and reform in the manufacturing process have helped the factory slash the cost of rail wheels by 22% for 1,000 mm wheels and 36% for 840 mm wheels… compared to last year’s prices, which were lower than those imported from China.

  • “In addition, we have started getting the input tax credit for the 10% to 12% GST we pay on raw materials. Our value addition work has been recognised.”
  • “For example, importing a 1,000 mm wheelset from China will cost Rs 2.1 lakh.” 
  • “Come January 1, 2021, the same product will be sold at Rs 1.3 lakh.”
  • “As of May 9, 2019, we were already selling a wheelset at Rs 1.68 lakh. The further reduction in price has been achieved due to continuous efforts,” the official (Rajiv Kumar) said.

The 840 mm wheels used for container-shifting wagons will similarly cost Rs 1.03 lakh against the Chinese product priced at Rs 1.74 lakh, which officials called a “gamechanger” given the high demand for the 840 mm wheelsets.

Over the last two years, an in-house design team installed an automated scrap-cutting unit, while the sand reclamation plant helps in recovering and reusing the 90% sand used in processing the metal (helping reclamation of scrapped and discarded wheels.)

Work process optimisation and rigorous quality checks at the first stage to avoid rework has also cut costs.

  • “Action was taken on multiple fronts to reach the present stage and the efforts will continue,” the official added.

News Source@

https://www.deccanherald.com/city/rail-wheels-made-in-yelahanka-rwf-cheaper-than-chinese-products-930509.html

 

 

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Suresh Rao

Mellowed out and enlightened septuagenarian. Tech savvy. Social writing is just a pastime to kill time. I keep contributing to several developmental projects in the area of engineering education, IT and Healthcare projects launched by my kith and kin. I am too lazy to write a book, 'cause I think my life itself is a book! I am also at www.facebook.com/sureshnrao
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Navneet Bakshi
Navneet Bakshi
1 year ago

I think, Indian plants need more automation and modernization, otherwise I wonder why the cost of production in India in any Industry should be more than that in China when the labour and logistics costs are much higher in China than in India.

Navneet Bakshi
Navneet Bakshi
1 year ago
Reply to  Suresh Rao

But there’s a need to change the mindset that automation doesn’t mean loss of jobs to many. China has more number of people than we have but right from the basic level of road and building constructions and from farming to restaurants and hotel, mall and anywhere you name, besides of course industry, they employ automatic and modern machinery, simply for better output and cost effectiveness. We have to get that in the minds of the people. Only then can we expect to compete with them.

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