7,000 manufacturers of engineered products to hold one-day shutdown | Ahmedabad News

Ahmedabad: Some 7,000 manufacturers of engineering products across Ahmedabad will keep their factories closed on December 20. The Ahmedabad Engineering Manufacturers Association (AEGMA) has extended its support for the national call for the closure of micro, small and medium enterprises (MSMEs) by the All India Council of Association of MPMEs (AICA) ), to protest against the unprecedented rise in raw material costs. Manufacturers alleged that production was negatively affected due to a sharp increase in the prices of pig iron, iron ore, steel and other metals. Even the foundries have extended their support for the shutdown.
Ahmedabad is home to some 7,000 units that manufacture engineering products in addition to some 1,500 foundries.
Extending his support for the national strike, AEGMA President Ashok Patel said: “Raw material prices have almost doubled in the past six months. These include the prices of pig iron, iron ore, steel and even coal which is widely used by manufacturers of mechanical products. This has increased our production costs by at least 40%.
“Previously, we got raw materials on credit for 45 days. However, we are now forced to make immediate payments if we are to source raw materials and also pay a higher price. This drastically reduces the working capital of the industry, further affecting production, ”Patel said.
Even foundries face similar difficulties, as the cost of manufacturing metal castings has increased significantly. “Most foundry units are MSMEs and do not have deeper pockets and therefore do not have sufficient working capital to procure raw materials at a higher cost. Plus, with skyrocketing freight costs and lengthening payment cycles, fulfillment is slow. Therefore, the foundries are also operating at 50% or even less capacity, ”said Subodh Panchal, former president of the Institute of Indian Foundrymen (IIF).
Industry associations have sought credit for industries to support rising input costs.

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