Coimbatore: Wet grinders would soon become costlier by 15%-25% with the manufacturers in the district mulling measures to offset the impact of sharp increase in prices of raw materials like plastic, steel, copper and aluminium in the overall production costs.According to R Soundrakumar, secretary, Coimbatore Wet Grinder and Accessories Manufacturers Association, nearly 75% of India’s wet grinders are produced in Coimbatore. “Of the one lakh units manufactured nationwide, around 75,000 are made in the city. About 100 companies, majority of them micro, small and medium enterprises, are engaged in the production of wet grinders, while nearly 200 firms manufacture accessories. In addition, around 50 units across Coimbatore, Namakkal and Uthukuli in Tirupur are engaged in grinding stone production. The industry provides direct and indirect employment to more than 25,000 workers,” he said. Coimbatore-made wet grinders account for about 80% of the domestic market and 15% of the export market, he said. “About 10,000 wet grinders are exported annually, with shipments reaching Middle East, Europe, US, Canada and Africa via sea and air. However, escalating geopolitical tension in West Asia has led to cancellation of export orders in recent days. Industry sources estimate that unsold inventory worth Rs50-Rs100 crore has piled up as a result.” Manufacturers said they were unable to take fresh orders, as raw material prices were fluctuating daily owing to the shortage of liquified petroleum gas. “With profit margins hovering around 10%, a 10%-15% increase in production costs has pushed many units towards losses. As a result, the association is considering a price hike of 10%-15% initially, though some manufacturers indicate that a 20%–30% increase may be necessary to sustain operations,” Soundrakumar said. P Kumaresan, chairman, Ponmani Industries, said experts were disrupted during Ramadan season, when wet grinder sales usually peak, due to the growing unrest in West Asia. It has led to accumulation of unsold inventory, he said. “The domestic industry is severely affected by a 30%-40% increase in the prices of key raw materials like plastic, steel, copper and aluminium. In particular, the cost of polypropylene, ABS (acrylonitrile butadiene styrene) and all plastic raw materials used in table top grinders has risen significantly.” Due to the sharp increase in production costs, manufacturers are finding it increasingly difficult to sustain operations, and a price hike of 20%-30% has become inevitable, he said. Industry representatives have urged the Union govt to take appropriate steps to stabilize raw material prices for a fixed period, stating that such measures are crucial to safeguarding the sector.
