The rise in electricity tariff has also affected the ability of large casting industries to compete with other States.
Coimbatore: 600 casting industries operate in Coimbatore district, of which 450 companies belong to micro and small sectors. About 2,00,000 lakh people are employed in the casting industry in Coimbatore district. The sector has recently been affected by the problem of rising prices of raw materials. At present, although the price of raw materials is low, the casting industry is suffering due to insufficient work orders and increase in electricity bills, etc.
Commenting on the present situation, the President of COSMAFAN Foundry Owners' Association, Sivashanmuga Kumar said, "The pumpset and automobile sector is currently weak. Due to this, micro and small moulding industry companies who rely heavily on large work orders from these two sectors have been affected. Apart from these, the increased electricity tariff in Tamil Nadu has caused a serious impact on the industry. It has become impossible to compete in the domestic market. Our Association has 400 industry members, out of which, 200 industrial companies are in a state of alarming decline in performance over the past two years. Some companies have temporarily halted production until the situation improves. At present only 30 percent work orders are available. Compulsory holidays are already being given on all Saturdays, except Sundays. If the same situation continues, there will be a situation where compulsory holidays will be given on weekdays in the coming days.
Similarly, Muthukumar, South Regional President of The Institute of Indian Foundrymen, a moulding national industry body said, "The prices of major raw materials used in the casting industry, including pig iron and scrap have decreased slightly. While the automobile and pumpset industries are affected, there is a demand for casting in sectors such as solar and wind power. Thus the big casting industry companies are coping with the current situation. The companies issuing the work order are asking for a reduction in the amount fixed for the order, pointing out that the price of raw materials has fallen. They express their displeasure when informed that the electricity tariff has been increased in Tamil Nadu. The rise in electricity tariffs has also affected the ability of large casting industries to compete with other States," he opined.
Commenting on the present situation, the President of COSMAFAN Foundry Owners' Association, Sivashanmuga Kumar said, "The pumpset and automobile sector is currently weak. Due to this, micro and small moulding industry companies who rely heavily on large work orders from these two sectors have been affected. Apart from these, the increased electricity tariff in Tamil Nadu has caused a serious impact on the industry. It has become impossible to compete in the domestic market. Our Association has 400 industry members, out of which, 200 industrial companies are in a state of alarming decline in performance over the past two years. Some companies have temporarily halted production until the situation improves. At present only 30 percent work orders are available. Compulsory holidays are already being given on all Saturdays, except Sundays. If the same situation continues, there will be a situation where compulsory holidays will be given on weekdays in the coming days.
Similarly, Muthukumar, South Regional President of The Institute of Indian Foundrymen, a moulding national industry body said, "The prices of major raw materials used in the casting industry, including pig iron and scrap have decreased slightly. While the automobile and pumpset industries are affected, there is a demand for casting in sectors such as solar and wind power. Thus the big casting industry companies are coping with the current situation. The companies issuing the work order are asking for a reduction in the amount fixed for the order, pointing out that the price of raw materials has fallen. They express their displeasure when informed that the electricity tariff has been increased in Tamil Nadu. The rise in electricity tariffs has also affected the ability of large casting industries to compete with other States," he opined.