COIMBATORE: Pumpset manufacturers have increased the product prices by 10% to 15% from January 1 due to a spike in the prices of raw materials such as copper and aluminium. However, at the consumer-end, the prices of motor pumps have gone up to 30%. Industrialists said the price increase is unavoidable due to fluctuations in the cost of raw materials.
It is not just the retail buyer who is hard hit by the price hike. Manufacturers, especially small and marginal manufacturers, in Coimbatore may find the going hard as it is not financially feasible to procure copper and aluminium materials essential for making pumpsets. Over 500 pumpset manufacturing units are based in Coimbatore. Out of this, only about 20 companies are major ones and about 90% can be categorised as MSMEs.
MSME industrialists claimed that they are struggling to run the business due to the surge in the prices of copper and aluminium materials in the market. KV Karthik, the president of Indian Pump Manufacturers Association, said, “Copper price was about $9,000 per ton in the last corresponding period. Now the price stands at $12,500 per ton. Similarly, aluminium price has increased to $3,000 from $2100 per ton in the market.”
He also pointed to the slump in the production and sales of pumpset motors manufactured in Coimbatore due to a prolonged monsoon last year. “The rains started in May and continued till December, reducing the need to use pumps. Also, due to reduced production volumes and increased costs, including that of raw materials, most companies have had to raise pump prices. We have increased the price per unit by 10-15% from January 1.”
R Kalyanasundaram, state general secretary of Laghu Udyog Bharati, said, “It was unavoidable for the industry to raise the price for pumps by 15% as the costs of copper and aluminium have gone up to 30%-40% in the last six months. But price hike varies industry-wise.”
S Sabarikumar, a manufacturer of pumps in Coimbatore, said “The price of pumpset motors rose by 30% between 2018 and 2024. In the last one year, the price has increased by the same level due to a spike in raw material cost. Large-scale industries may adjust with the price increase based on their volume and business. But, small-scale industries have no option other than to increase the price based on the input costs for raw materials.”
C Soundararaj, secretary of the Tamil Nadu Pump and Spares Manufacturers Association, said, “Already the businesses of MSME units in pump production have suffered due to climatic conditions and resultant low sales. Meanwhile, the spike in raw material cost has impacted the SSIs as they cannot compete with larger ones which can maintain stock of raw materials and adjust profit margins. But small industries cannot do so. Over 10% of the units may not continue production and shut their business.”
Market Price: Motor Pump
CAPACITY | BEFORE | AFTER
5 hp | Rs 25,000 | Rs 27,500
7.5 hp | Rs 32,000 | Rs 35,000
10 hp | Rs 37,000 | Rs 41,000
hp = horse power