Pump Sector Joining In The List Of Slump
Pumpset manufacturing units seem to be joining the list of sectors here hit by demand slump during the last few months. Jayakumar Ramdass, president of the Southern India Engineering Manufacturers’ Association, said the automobile component manufacturers were facing a 40 per cent decline in sales this year compared to last year. It was 60 per cent for foundries and 70 per cent for die-casting industries.
Though the demand was good for pumpset manufacturers, the market had started coming down for these units too in the last few days resulting in 30 to 40 per cent dip in sales. “We seem to be the last to be hit here,” he said. Except for a very few units, the rest of the pumpset sector here faced demand problems. The association would be able to help its members in issues such as technology. But, nothing could be done about slowdown in market.
“How can the units improve business if the market itself is down,” he asked. Further, the units in Coimbatore focused on agricultural and domestic pumps. The customers for the manufacturers here were limited to these two segments and hence the possibility of diversification was also less.
The Government should lend a helping hand to the industry that was facing several hardships, he said. He added that it would not be possible to increase the costs for end customers. Hence, the Union Government should have a lenient budget. The marking fee should not be enhanced and the fringe benefit tax should be withdrawn he said. The Government should not levy any fresh tax and there should not be any new norms for fire and safety, Mr. Ramdass said.
