Coimbatore Foundry Association COSMAFAN has decided to raise casting product prices by 10 percent immediately, citing a 20-40 percent surge in raw material costs affecting micro and small foundries across the district. The decision impacts over 400 foundries employing lakhs of workers.
Coimbatore: The Coimbatore Small and Micro Foundry Owners Association (COSMAFAN) has announced a 10% price increase for all foundry products, effective immediately, due to the steep rise in raw material costs that has severely impacted production operations in the foundry industry.
COSMAFAN President Sivasanmugakumar announced this decision following an emergency consultation meeting held in Coimbatore. He stated that the association, which has been working for the development of the foundry industry in Coimbatore district for the past 45 years, had no choice but to implement this price revision to ensure business continuity.
The association comprises over 400 micro and small foundries that directly employ 2 lakh workers and indirectly support the livelihoods of another 5 lakh workers. The industry generates an annual turnover exceeding Rs 2,500 crore.
Sivasanmugakumar explained that over the past few months, prices of basic raw materials required for foundry operations have increased by up to 20%, while allied materials have seen price hikes ranging from 20% to 40%. This erratic price escalation has pushed micro and small foundries into severe losses, creating an extremely difficult situation to continue operations.
To cope with this crisis, the association unanimously decided to increase the prices of casting products manufactured in foundries by 10% from current rates. This price increase comes into effect immediately.
The association chief also made several demands to the Central and State governments to protect the foundry industry. He urged the government to take war-footing measures to control the price escalation of raw materials and allied materials. He demanded establishment of a Raw Material Bank by the government at the Arasur and Manickampalayam foundry clusters.
Additionally, COSMAFAN has requested reduction of GST for micro foundries from the current 18% to 5%. Sivasanmugakumar emphasized that only by fulfilling these demands can the livelihoods of lakhs of workers and the foundry industry itself be protected.
The foundry industry in Coimbatore has been a significant contributor to the district's industrial economy, with the clusters at Arasur and Manickampalayam being major manufacturing hubs. The price increase is expected to have ripple effects across various industries that depend on foundry products for their manufacturing processes.
COSMAFAN President Sivasanmugakumar announced this decision following an emergency consultation meeting held in Coimbatore. He stated that the association, which has been working for the development of the foundry industry in Coimbatore district for the past 45 years, had no choice but to implement this price revision to ensure business continuity.
The association comprises over 400 micro and small foundries that directly employ 2 lakh workers and indirectly support the livelihoods of another 5 lakh workers. The industry generates an annual turnover exceeding Rs 2,500 crore.
Sivasanmugakumar explained that over the past few months, prices of basic raw materials required for foundry operations have increased by up to 20%, while allied materials have seen price hikes ranging from 20% to 40%. This erratic price escalation has pushed micro and small foundries into severe losses, creating an extremely difficult situation to continue operations.
To cope with this crisis, the association unanimously decided to increase the prices of casting products manufactured in foundries by 10% from current rates. This price increase comes into effect immediately.
The association chief also made several demands to the Central and State governments to protect the foundry industry. He urged the government to take war-footing measures to control the price escalation of raw materials and allied materials. He demanded establishment of a Raw Material Bank by the government at the Arasur and Manickampalayam foundry clusters.
Additionally, COSMAFAN has requested reduction of GST for micro foundries from the current 18% to 5%. Sivasanmugakumar emphasized that only by fulfilling these demands can the livelihoods of lakhs of workers and the foundry industry itself be protected.
The foundry industry in Coimbatore has been a significant contributor to the district's industrial economy, with the clusters at Arasur and Manickampalayam being major manufacturing hubs. The price increase is expected to have ripple effects across various industries that depend on foundry products for their manufacturing processes.