Coimbatore which is also called ‘Pump City’ might soon see a moment where the industry could experience serious wreckage like never before.
The industry has been witnessing raw materials’ costs touching new highs for unclear reasons, and now due to the Ukraine-Russia war, the cost of Iron, Steel, Copper and Aluminium have all shot up greatly, leaving various stakeholders of the industry in a puzzled state.
In the last 7 days since the start of the war, copper prices have increased by Rs.56, Aluminium by Rs 40, Pig Iron by Rs 7, and Steel by Rs 10.
Southern India Engineering Manufacturers’ Association (SIEMA) President K.V.Karthik said “The cost to manufacture a pump set has risen by 50% with reference to 2020 material prices. The pump manufacturers were not able to pass on the entire extent of the price to the customers due to market resistance,” via a press release.
“Increase of Pumpset prices have partially offset the cost of manufacture but have led to a severe slowdown in demand. Further increase in pump prices will pull the demand down further,” he added.
K.V.Karthik expressed that for the past one and half years, MSMEs have requested the Union Government through various mediums to control the raw material price hike. He has again appealed to the government to help the industry at this grave hour.
“If raw material prices are not controlled, the 10,000 crores Coimbatore Pump Industry providing employment to about lakh persons will face an existential crisis and several MSME pump manufacturers will cease operating in the next few weeks,” he underlined.