Micro, Small, and Medium-scale Enterprises (MSMEs) here continue to face slowdown as demand has not revived, say industry association heads.
According to J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises (TACT), 70 % of the micro units here are without orders. The micro units do job work for larger industries that are involved in manufacture of pumpsets, wet grinders, automobile components, or general engineering products. While the automobile sector is seeing better off take of components, the pumpset industry is yet to revive. Even the general engineering industry is yet to revive, he said.
Though raw material prices have started reducing, there are reports that in the local market the prices are still high. Further, the larger industries are already negotiating prices with the micro units who do job work. These units still have at least minimum stock of the raw materials that were purchased at higher prices. Also, the MSMEs feel that the larger industries may see higher demand only by August.
Another factor that is a matter of concern to the MSMEs is the increasing number of COVID-19 cases in the district. While there are no restrictions on industries, if there are more cases, the industries may face worker shortage or a drop in orders. “At present, we are asking the workers to wear masks. Micro units in Coimbatore cannot absorb any further slowdown in industry,” he said.
M.V. Ramesh Babu, president of Coimbatore District Small Industries Association (CODISSIA), told The Hindu steel prices had declined by almost ₹ 30,000 a tonne. Prices of materials such as copper and aluminium were reducing gradually. But, the market was yet to pick up. This was because the large industries were waiting for prices to fall further. Also there were unconfirmed reports of recession in the US, and slowdown in Germany. “The market is very volatile. It is yet to gain momentum,” he said.
