Coimbatore: In the Cascading effect triggered by pandemic, the pumpset producer in this district struggles to excite increased costs from raw materials for the past year that has doubled production costs.
The cost of increasing raw materials has forced producers to reduce production and seize labor with one third.
Several years, return, Coimbatore produces around 60% of the total pumps produced in this country.
However, market share has fallen for 400-odd producers in the district in recent years.
“Until last year, the manufacturing pump in Coimbatore was appreciated by Rs 7,000 Crore from a total market share of RS 15,000-RS 17,000 in the country.
Now it has dropped to less than Rs 4,000c Crore,” said Ma Senthil Kumar, from Supertech Industries.
“Because of reduced This request, the pumpset manufacturer only works at 40% of their capacity and seizes a third of their workforce.
This industry offers work for 1.5 lakh people.
50,000 of them have lost their jobs in the past year.
Most units may not be able to Pay bonuses to their employees Diwali, “he said.
The pump fee ranged from Rs 2,000 and Rs 40,000 until last year based on its capacity.
Selling a pumpet for RS 40,000 now costs more than Rs 60,000 while selling costs 10,000 rs 15,000.
Manufacturers say the cost of input has doubled but they climb the selling price only to the limit, not fully transfer the entire load to the customer.
While the costs of raw materials multiply but manufacturers cannot double the pump fees because of their low demand.
“Usually, pump costs have increased once in every 2-3 years but an unprecedented increase in the cost of raw materials has forced producers to increase prices on several occasions,” said KV Karthik, President of the Association of South Indian Engineering Producers (Siema).
For farmers, the main user of the pump, the drilling fee and installing a bore well pump is more than double a year.
This large cost increase has delayed the procurement and installation of pumps.
As a result, the pump demand has significantly reduced in the market, he said.
The pumpset manufacturer has urged the center to curb steel exports to reduce the cost, which will relieve the pump industry in coimbatore.
Charthik said the profit margins of large steel companies have increased exponentially because they utilize high steel costs by exporting them.
“But the increased costs of steel and other raw materials have affected MSMEs.
The Center must consider curbing steel exports at least 50% to reduce costs that increase,” Karthik said.