Micro, small and medium-scale enterprises (MSMEs) in the engineering sector are investing in automation and upgrading the existing machinery.
According to former president of Coimbatore District Small Industries’ Association, M.V. Ramesh Babu, the response to the recently concluded machinery exhibition Intec was encouraging. It is expected to have generated nearly ₹1,000 crore worth business enquiries. One major company got orders for 20 CNC machines at the fair, he said.
Several overseas companies in the engineering sector that were sourcing their major needs from China are now looking at India. Hence, orders are increasing for direct exporters. This has led to more orders for job working MSMEs here. Further, companies are facing labour shortage and hence want to invest in automation wherever possible, he said.
P. Nallathambi, president of Coimbatore SIDCO Industrial Estate Manufacturers Association, said the units at SIDCO Industrial estate were operating at just 50 % to 70% capacity.
“Raw material prices should stabilise for companies to increase capacity utilisation. There are problems when prices increase and when prices fall too. There are no new investments. However, for the last two years several units had put off replacements or upgrading existing machinery. They are making small investments now. Also, it is difficult to get skilled workers and hence, MSMEs want to go in for at least minimum automation,” he said.
