BENGALURU: The disruption in supply of cheaper raw material from China due to coronavirus outbreak has severely impacted many industries in the state. Finished goods despatched to China, Italy, Germany and France too have taken a major hit, say leading industry representatives.
Auto components, pharma, plastics, agarbatti, garments, electricals, electronics and granite are the major industries that heavily depend on raw material from China to sustain their businesses. The finished products are sent back to China, they say.
R Raju, president, Karnataka Small-Scale Industries Association, said, “The supply chain has been disrupted due to the virus outbreak. Once the cycle is disrupted, it will have an all-round impact. Presently, anywhere between 30% and 40% of industries in Karnataka are affected.”
The impact began by January-end when the Chinese delegates expected for the mega IMTEX (Indian Metal Forming Exhibition) failed to turn up as the virus was spreading in China.
CR Janaradhana, president, Federation of Karnataka Chambers of Commerce and Industry, said exports from Bengaluru have come to a standstill. “There is no one available in the container terminals in any country to even receive the goods we despatch. Right now, stocks sent much earlier like auto components are languishing in China, while packaged materials, condiments and different food products sent to Italy are lying idle there,” he said.
National Executive Committee member of ASSOCHAM, J Crasta, said, “This is a chance for everyone to rethink and get into expanding their businesses. Let us all diversify and start readying the material here only at cheap prices. Even if we start immediately, it could take 1.5 to 2 years to start operations. But this dependence on others can be stopped.”