Hit by poor demand, foundry biz to encounter 'dull' 2017
Domestic foundry industry will witness a 'dull' 2017 in view of the impact of demonetisation and implementation of GST, but a revival was expected next year, its apex industry body said on Monday.
Demonetisation had its impact on the industry particularly in sourcing of metal scrap and "there has been a 20-30 per cent drop in production," Institute of Indian Foundrymen president Anil Vaswani said.
"Demand has slipped and end users are feeling the pinch.
By the time, the demonetisation effect fades, we will have GST implemented. Business will continue to remain dull for another six months. 2017 may not be a good year for business. We expect it to revive in 2018", he said in a statement. On the initiatives taken up by the IIF, he said a Centre of Excellence for casting technology and skill development had been planned in Coimbatore at an investment of Rs 40 crore.
"The proposal, awaiting the Centre's approval, is in the interest of small and medium enterprises and would be set up with the support of MSME Ministry", he said.
The project would be a boon to help small units on the technological and labour fronts to tide over any crisis. Vaswani said the business was affected in the last few years due to China aggravating power components exports.