Raw material and petrol price hike forces closure of 15 pumpset manufacturing factories in Coimbatore

Coimbatore: Nearly 15 pumpset manufacturing factories in Coimbatore city have downed shutters due to the continuous rise in prices of essential raw materials like iron, steel, copper and aluminium, as well as petrol required for the manufacture of pumpsets.

Coimbatore is renowned as a popular industrial city, especially in the production of motor pumpsets that meet various needs at homes, offices, for agricultural purposes etc. The pumpsets are manufactured in more than 30 models, including self-priming, monoblock, open well submersible monoblock, stage monoblock and borewell pumps. There are 3,000 micro and small enterprises, and more than 100 big industries engaged in pumpset manufacture.

Pumpsets of different capacities range from 0.5 HP (Horse Power) to 100 HP. The finished products are being sold between Rs.3,000 and Rs.1 lakh. However, the pumpset industry has been facing a lot of crises due to the continuous rise in raw material prices, leading to the shutdown of certain factories.

The President of the South Indian Engineering Manufacturers Association (SIEMA), K V Karthik addressed the issue. "Iron, steel, copper and aluminium are the main raw materials required for the manufacture of pumpsets. The prices of such raw materials continue to rise exponentially and have more than doubled compared to the price of raw materials sold in March 2020. Despite several demands made by industry bodies, the issue of price rise in raw materials has not been resolved till date. The situation is worsening with each passing day and the industry in Coimbatore district, which is famous for its pumpset production, is facing a lot of crises."

He added that out of the factories employing under 50 workers, 15 were closed down unable to cope with the crisis and industries employing up to 100 workers have been forced to close down. "If the Centre does not resolve the issue of price rise in raw materials at the earliest, a large number of pumpset industries in Coimbatore will be permanently shut down in the coming days. The price rise of raw materials has resulted in many workers losing their jobs and the Centre has to attend to the cry of the industry," urged K V Karthik.

Maniraj, the President of the Kovai Power Driven Pumps and Motors Spares Manufacturers Association (KOPMA) stated that the situation for micro and small pumpset manufacturers is getting worse day by day. "The industry was unable to pay GST tax and could not pay interest on the loan taken. In addition, the micro pumpset manufacturers are unable to even pay rent for the buildings where their companies operate, and in such a situation, the continuous rise in raw material prices has had a huge impact.

Petrol plays a very important role in the manufacture of components required for the manufacture of pumpsets. So with the price of petrol hiked to Rs.110 as of today, its impact will be reflected in the price of components. Due to this, the production of pumpset will require additional cost," he added.

Maniraj also highlighted that in today's scenario, those who run micro-pumpset manufacturing companies are becoming debtors and if the situation persists, many micro-enterprises will be permanently shut down. He reiterated that the Central Government should take steps to resolve the issue of increase in prices of raw materials and petrol which alone could help solve the problem.