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