Higher demand revives operations at small foundries in Coimbatore

For the small foundries in Coimbatore, the last six months have seen a revival of orders after a phase of sluggish demand.

“If the current trend continues, small foundries will start investing again,” said Coimbatore Tiny and Small Foundry Owners Association (COSMAFAN) president A. Shiva Shanmughakumar.

The foundries in Coimbatore district require about two lakh workers. The current availability of workers is just 1.5 lakh to 1.75 lakh. Hence, the foundries have reduced to 12-hour operation from three shifts a day.

Since the larger foundries were unable to cater to all their orders because of labour shortage, the demand spilled over to the smaller foundries. “Those foundries that were operating at 125% capacity have reduced to less than 100%. Those who were operating at 75% capacity are now running at 100% capacity. So, orders are spread across large and small foundries now. If the orders are good, payments will be on time. If the present situation continues, the smaller foundries will also start investing,” he said.

Orders for pumpsets usually drop after June when the monsoon rain picks up. This year, with poor rain during southwest monsoon, demand for pumpsets is high even now. Textile industry and basic engineering sectors are also doing good in Coimbatore region. These have all led to higher orders for foundries, he said.

Regarding raw material prices, Mr. Shiva Shanmughakumar said the prices have increased 5% in the last one week and are expected to see another 5% hike in the coming weeks.