The Hindu Business Line : Coimbatore pump industry suffers a jolt

The pump industry in Coimbatore has suffered a serious jolt in the first quarter of current fiscal with the sales dropping by about 20 per cent that the industry terms as the steepest fall since 1996.

The decline in sales has come at a time when the industry is grappling with the twin problems of rising input costs and inability to raise the product prices due to competition and market apathy.

Speaking at a news conference, Mr G. Rajendran, Managing Director, CRI Pumps Pvt Ltd and former President of Southern India Engineering Manufacturers' Association (Siema), Coimbatore, said the first quarter of a year normally accounted for about 40 per cent of the sales of the industry. But this year, the industry had suffered a serious knock with the sales dropping by about 20 per cent. He termed the fall in sales in April-June period as the steepest the industry in the region had witnessed since 1996.

He said the main reasons for the decline in sales were good monsoon, non-availability of finance from lending institutions and delay in providing power connections to the agricultural pumpsets in many States.

He said power was available for farm operations only for a few hours a day in many States in northern and central India. The number of new farm power connections given all over India was negligible this year.

In States such as Tamil Nadu, the possibility of further power connections to farm pumpsets was limited, as already nearly 90 per cent of the agricultural pumpsets had been energised. Hence the drive for growth in demand had to come from West and Northern India.

He said because of the non-availability of power supply, the financial institutions were reluctant to extend finance for purchase of pumpsets. The good monsoon also contributed to farmers putting off purchase of pumpsets up to 20 HP.

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