COIMBATORE: Micro and cottage unit entrepreneurs should have a PAN card, register for Value Added Tax and produce the right address for their units, President of the Southern India Engineering Manufacturers’ Association Jayakumar Ramdass said here recently.
Speaking at a vendor development programme organised by the association jointly with the Micro, Small and Medium Enterprises Development Institute (MSME DI) and the Tamil Nadu Association of Micro and Cottage Enterprises (TACT) he said the size of the pumpset industry here was nearly Rs. 2,000 crore.
Of this, the material cost alone accounted for 70 per cent. The industry was purchasing 60 per cent components from other States. If 10 per cent of this could be brought back to Coimbatore, it would immensely benefit the industries.
The association had about 300 members and 80 per cent of them were Coimbatore-based pumpset manufacturers.
While some of these units had created facilities to produce components some others had gone in for sub-contracting and job orders.
In-house facilities helped control cost and maintain quality parameters. Through job orders and sub-contracting, the units were able to manage the market fluctuations and reduce inventory.
About 75 potential vendors who participated in the meeting had given the profile of their units, including the machinery, machining equipment and capacity available. This would be circulated among all the members of the association.
A follow-up meeting would be held after three months. The component requirements of the automobile and pumpset manufacturers were explained to the participants. The problems faced by the micro and cottage units in manufacturing some of these components here were also discussed.
Mr. Ramdass said the meeting would provide business to the micro, cottage and larger units here.
The micro units should streamline their operations to get more orders.
President of the TACT J. James urged the micro and cottage enterprises to make use of the opportunities. For the last two years, the global economic crisis had affected almost all sectors. India and China were relatively unaffected and with the economic revival, opportunities were growing for the manufacturing units here.
The micro and cottage units should not be reluctant to tap these opportunities.
Deputy Director of MSME DI M. Palanivel welcomed the gathering.