Jamnagar brass industry cuts output

Rajkot Apr 03, 2012

The brass parts industry based out of Jamnagar is yet again trying to survive the global recession. In a bid to tackle the current economic crisis, the industry has cut output by almost 30-40 per cent.

“The global slowdown, especially in the European continent, has seen a decline in exports of brass parts and brass by almost 50-60 per cent. Moreover, domestic orders have also reduced considerably. This has forced most brass parts manufacturers to cut production by 30-40 per cent,” said Ramjibhai Patel, president of the Jamnagar Factory Owner’s Association (JFOA).

Manufacturers of brass parts are now running their units for five or six hours a day, as against the average eight-to-nine hours earlier.

“We are currently depending on the domestic market, since we have very nominal export orders right now. However, while even domestic demand is weak, we expect it to grow in the next two-to-three months,” Patel added.

The Jamnagar-based industry exports brass parts worth about Rs 300-400 crore to Europe, the US and the Gulf countries every year. But due to the global economic crisis this year, the industry expects exports to be 40-50 per cent lower.

According to Patel, 2011-12 had begun on a good note for the industry with adequate export orders from Europe and the Gulf countries but after the Navratri festival the scenario changed. “We now expect exports from here to be Rs 200-250 crore,” said Patel. But even while manufacturers have cut output, none of them has reduced their labour force, says Virji Patel, vice president of JFOA.

There are 5,000 brass-making units in Jamnagar, more than 80 per cent of which are in the small-scale category. The industry’s total annual turnover is about Rs 2,500-2,700 crore, and it employs more than 250,000 persons.