Coimbatore's renowned pumpset industry likely to be hit by Gujarat's foray into the market
News
Coimbatore's renowned pumpset industry likely to be hit by Gujarat's foray into the market
SimpliCity News Team · 31 Oct 2022
Coimbatore: The industrial city of Coimbatore has been renowned for excelling in the production of various products including textiles, pumpsets, grinders, automobile components, engineering goods, etc.
According to industry experts, Gujarat has steadily been inching ahead of Coimbatore in various industries due to issues plaguing the Coimbatore industry sector, like rising raw material prices and power tariffs. Gujarat's dominance is expected to increase further in the coming years.
According to Vignesh, President of the South Indian Engineering Manufacturers' Association (SIMA), the issue of rising raw material prices for one-and-a-half years following the Covid-19 pandemic has created a huge crisis for all industries in Coimbatore district. "Most of the raw materials required for pumpset products are brought from the state of Gujarat. In the last few years, pumpset manufacturing companies in Gujarat have started functioning more.
Coimbatore-based companies had earlier contributed up to 65 percent of India's pumpset demand. Now this rate has come down to 45 percent. The quality of the pumpset products manufactured in Coimbatore is good and continues to be given importance in the market. Earlier, however, the Gujarat pumpset price was only 10 percent lower compared to the Coimbatore pumpset price. It is currently 20 percent lower. This is mainly due to the rise in the price of raw materials. Apart from this, the soil required for the production in Coimbatore is brought to Coimbatore from Andhra Pradesh (Koduru). In Gujarat, soil is easily available from the Sabarmati river basin."
"Besides, the scrap products are also available in the required quantity at a very low price in Gujarat. In Coimbatore, a kilo of casting is sold at Rs. 93, while in Gujarat, it is available for Rs. 82. Even if they are transporting up to Rs. 6 per kg, from Gujarat, it will benefit the Coimbatore companies. Hence, the Coimbatore industry has started thinking about implementing the project from 2023 onwards and making necessary efforts to implement it," added Vignesh.
Sivakumar, the President of the Coimbatore and Tiruppur District Micro Industries and Rural Entrepreneurs Association (CADMA) said, "Moulding is the main raw material for the production of any material. There are more than 600 moulding factories functioning in Coimbatore. Out of these, 450 industries belong to the micro, small and medium enterprises category. Gujarat, which has only started to dominate the pumpset industry, has now emerged as a rival in the moulding industry.
Apart from moulding, it also excels in the manufacture of many important raw materials including soft (shaft). Due to the rise in raw material prices and increase in electricity tariffs, Coimbatore industries are unable to compete with Gujarat. Also, the Tamil Nadu Government should immediately reduce the electricity bill. Otherwise, Coimbatore district will lag behind in industrial development."
