Higher demand revives operations at small foundries in Coimbatore

The small foundries in Coimbatore have experienced a resurgence in orders following a period of slow demand. According to A. Shiva Shanmughakumar, president of the Coimbatore Tiny and Small Foundry Owners Association (COSMAFAN), if the current trend persists, the small foundries will begin investing again. Coimbatore district's foundries require around two lakh workers, but currently, only 1.5 lakh to 1.75 lakh workers are available.

Consequently, the foundries have reduced their operation from three shifts a day to 12 hours. Larger foundries were unable to meet all their orders due to a shortage of labor, causing the demand to transfer to the smaller foundries. Those previously operating at 125% capacity have now reduced to fewer than 100%, while those running at 75% capacity are now at 100%.

This has resulted in orders being distributed among both large and small foundries. Additionally, since pumpset orders typically decline after June when monsoon rains increase, the demand for pumpsets remains high this year due to poor rain during the southwest monsoon. Furthermore, the textile industry and basic engineering sectors are also performing well in the Coimbatore region, contributing to the increased orders for foundries.

Regarding raw material prices, Shanmughakumar stated that prices have risen by 5% in the past week and are expected to see another 5% increase in the coming weeks.