Tamil Nadu

Ford closure will hit us hard, say MSMEs

T.M. Anbarasan, Minister for Rural Industries, listening to the concerns raised by the MSME units . B. Velankanni Raj   | Photo Credit: VELANKANNI RAJ B

Over 50 micro, medium and small enterprises (MSMEs) from across the State who supply materials and components to Ford gathered in Chennai to present details on how their production would be impacted due to the car maker’s decision to cease manufacturing at its plant in Maraimalai Nagar, Chennai.

T.M. Anbarasan, Minister for Rural Industries, was present at the Tamil Nadu Small Industries Development Corporation Ltd (Sidco) office to listen to the woes of the MSME units.

The MSME owners whom The Hindu spoke to said that on an average they would lose anywhere between ₹50 lakh and ₹4 crore a month depending on the volume (the number would vary for each unit depending on the component they supplied). Data provided by heads of various MSME units shows that around 15% of production directly goes to Ford and the remaining 85% is supplied to other companies who add these parts to the components that they make and supply to Ford. S. Nargunam, Managing Director of Excel Die Castings, which is housed inside the Sidco Industrial Estate, Thirumudivakkam, said, “We are the manufacturers of aluminium pressure die castings and have been supplying mirror assembly parts to Ford company as Tier-2 (through tier-1) for the past ten years. Because of Ford’s decision, we will be losing orders to the tune of ₹2.28 crore for the year 2021-22.”

Dilsen Auto Components, which makes plastic injection moulding products will see a loss of ₹10 lakh-₹12 lakh per month due to Ford’s decision to wind up. It’s proprietor Sudharsan said that they were supplying 30,000-40,000 pieces per month to the tier-1 company for the past 10 years. A Chengalpattu-based unit which makes air ducts through blow moulding process said that 50% of its annual production goes to Ford and the revenue impact would be a loss of ₹1 crore per month. Ranipet based PM Techno Pvt Ltd, which makes combination switches and gear shifters for the car maker, would be losing business to the tune of ₹18 lakh to ₹20 lakh per month. “We make child parts and send it to our Tier 1 firm and from there certain products are exported,” said M.Ellai Arasan, the firm’s director of New Products Development.

After listening to the concerns, the Minister said that he would take all these issues to the notice of Chief Minister M.K. Stalin.

About 75 big companies and more than 200 small and medium companies are involved in the production and supply of spare parts indirectly/directly to Ford. Meanwhile, the Chennai Ford Employees Union is still in talks with the management on the future of the 2,600 employees working at the plant.


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Printable version | Oct 26, 2021 9:26:58 AM | https://www.thehindu.com/news/national/tamil-nadu/ford-closure-will-hit-us-hard-say-msmes/article36621527.ece

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