COIMBATORE:The financial crisis in Greece is having an effect on Coimbatore’s well-known pump industry. There has been a fall in orders for pumps from European countries, including Greece, after the crisis broke out, said V Laxminarayanasami, president, Southern India Engineering Manufacturers’ Association (SIEMA). The sector fears a major revenue loss if the crisis persists and is not effectively solved soon.
According to the SIEMA president, the Coimbatore pump industry has a turnover of around Rs 3,000 crore, of which, exports alone account for Rs 300-400 crore.
“We cannot disclose the exact figures. In the last few months, there has been a 10-15 percent decline in orders of all major pump exporters here. It may increase if the Greek crisis worsens,” he added.
These companies are watching the continuing problems with utmost concern and want the government to help Coimbatore’s pump industry.
“Exporters have to follow guidelines and targets as per the Export Promotion Capital Goods (EPCG) scheme, including those that deal with quantity and certain deadlines. Because of the crisis in Europe, the exporters may not be able to meet the EPCG obligations. So the government should help them by being flexible about these obligations,” he said.
Laxminarayanasami expressed the hope that the attempts to solve the crisis would be successful.
The major exporting companies are Aquasub Engineering, Mahendra Pumps, Suguna Pumps, Sharp Industries, Deccan Pumps, CRI Pumps, Texmo Pumps, PVG Industries, Flowserve and Kirlosker Brothers and KSB Pumps are the major exporters.
Apart from European countries including Greece, exports are made to UAE, Egypt, USA and African Countries. Coimbatore has a great tradition in pump manufacturing and the industry keeps Coimbatore’s name alive in the national and international markets.
“The first electric motor and water-lift pump were produced in India in 1928. At present, 60 percent of the domestic market’s needs are met by the Coimbatore pump industry. It has a good market in several countries, but is facing strong competition from countries like Turkey and Germany. The Coimbatore industry has not been able to conquer the international market completely,” said George Thomas, a city-based economist.