Nike Shox Arraw +0Rajkot Foundry Industry Hit By R

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unprecedented global economy emergency has caused a dent in the bottom line of small and mid-sized Rajkot foundry elements. [link widoczny dla zalogowanych]
The sector incurred considerable wastage and witnessed approximately 50,000 layoffs in 2008-09.
Furthermore, to multiplication to their woes, the present monetary annual is no presumable to send much alteration.
Foundry units face bad times
SME units clustered in and around Rajkot witnessed one erosion of their profit margins last financial year due to dwindling sales growth. The demand slump in the engineering merchandise and auto components sector also affected the city’s foundry industry.
This namely largely deserving to the fact that the latter sector is largely dependent on the sometime for affair, as maximum of the foundry and cast-iron products are utilised by these sectors.
The Rajkot foundry industry, which once generated revenues value Rs 700 crore per annum [link widoczny dla zalogowanych], saw its turnover plummet drastically in 2008-09.
During this duration, the aggregate revenue from the sector dripped by 80%, to an estimated Rs 200 crore. In adding, it also saw a steep decline in its export earnings as international purchasers in the US and Europe cancelled majority orders.
Bhavesh Patel, President, Rajkot Engineering Association (REA), says, “The last financial year proved to be quite abysmal for the engineering and foundry industry in the city. The small and mid-sized athletes in these sectors have been affected the most by the progressive recession.
While several small-scale cast-iron foundry units have shut down operations, some others are cutting down on their going hours due to less orders. Reduced production levels have compelled many units to arrange off their workers”
Price fluctuation affecting units
Besides the shrinkage of backup orders and plunge in servant bargains, the foundry industry also faced the detrimental clash of price fluctuations during the last financial year.
“Sky rocketing prices of raw materials like coal [link widoczny dla zalogowanych], pig steel and iron ore beyond worsened the location as the foundry manufacture during 2008-09. Steep hike in raw substance prices led to increased cost of product for small units. Unable apt cope with the tall operational costs, many of them were constrained to cut back on ashore their output levels to sustain their margins,” says Bharat Thaker, Proprietor of a Rajkot-based grey iron castings unit, Bajrang Foundry.
The industry prediction for the current financial year doesn’t seem quite affirmative either. A quick resurgence seems unlikely in the coming dwelling and it may take a meantime for the market to acquisition momentum. Until then, small and mid-sized units absence to take calculated decisions in order to lest whichever further loss.