The engineering industries in Coimbatore, mainly those in the Micro, Small and Medium-scale Enterprises (MSMEs) segment, are looking at a year of mixed trends this year.
The pumpset industry saw positive trends for almost two months in the northern markets. However, there is a slowdown now because of unseasonal rains. A clear picture will emerge by the end of this month or early next month, said K.V. Karthik, president of the Indian Pump Manufacturers’ Association.
According to V. Thirugnanam, president of the Coimbatore District Small Industries’ Association, the general engineering sector is doing better. Orders have improved slightly and compared to last three months, the situation is better now. “This year will be positive going by the current trends,” he said.
The raw material prices are stable for now though there are reports that the prices may increase in the coming months. The governments are also supportive. But, the banks need to support the MSMEs more, he said.
In the case of small-scale foundries, Coimbatore Tiny and Small Foundry Owners’ Association president A. Sivashanmughakumar said fluctuations in the market were affecting the industries. “There is a growth for most of the units in terms of value (of orders) as raw material prices increased 10 %. But there is no volume growth. Further, several medium and large-scale industries in Coimbatore have increased capacities and reduced orders outsourced to smaller units to remain competitive,” he said. The industries need stable raw material prices. In Coimbatore, the small foundries get orders mainly from the pumpset sector. It is yet to revive, he added.
A small-scale industry owner said textile industry is not doing well and pumpset sector is yet to revive. “There are more push orders and not pull orders,” he said. Compared to last January, the industry is not doing well now. “In my unit, I was paying ₹14,000 a month as fixed charges for electricity. Now, I pay ₹60,000 a month. How can micro and small-scale units manage such hikes when there are no orders?” he asked.
The industry needs power supply at competitive prices to revive, he added.
