It is not the best of times for the micro units in Coimbatore. Thousands of cottage industries in Coimbatore supply components or do job work for bigger industries mainly in the pumpset, wet grinder and automobile sectors. With the economic slowdown hitting these sectors, the units saw a drop in orders.
However, there is a ray of hope now.
As many as 20 wet grinder manufacturing units here will directly supply 25 lakh grinders to the Tamil Nadu Government this year for its freebies distribution special programme. This will give jobs to nearly 3,000 units, says S. Ravikumar, president of Coimbatore Tirupur District Micro Entrepreneurs’ Association.
ADVERTISEMENT
This is the third year that Coimbatore units are getting direct orders. In the first year, the units supplied about 15 lakh grinders. In the second year, it was lesser. This year, after the re-tender, 12 units have bagged orders for 25 lakh grinders. These units will operate as a consortium involving more units.
The pumpset and automobile sectors are facing slowdown in orders. If the Coimbatore units had not got the wet grinder supply order for the Government scheme, the situation would have been worse for the micro units. “We have been appealing to the Government to ensure that Coimbatore units get larger orders. Hence, there was a re-tender and we will benefit now,” he said. The orders should be met in five months and the units will start working on it now. They do several job works such as processing the grinding stones, supplying the frames, shafts, castings, spares, etc.
D. Krishnamurthy, president of the Coimbatore Wet Grinder Manufacturers’ Association, says that Coimbatore units have got orders to the tune of Rs. 500 crore.
ADVERTISEMENT
Many units have increased their capacity and will be able to meet the orders on time. The open market is slow now and orders are only during the marriage season. The Government order will benefit the direct suppliers, raw material and component suppliers and the job working units, he said.