Jamnagar-based brass parts industry is fearing 25 per cent decline in the turnover for the current year as weak monsoon and dull economic conditions seems to have adversely affected fresh orders for the industry.
According to industry, pre-monsoon orders were weak during the months of May to July this year, while things have not improved so far.
"Brass parts industry largely depends on real estate sector and hardware industry, while both of them are not doing well in the present time. If monsoon remains weak, then the situation may turn adverse and will also create problems for the brass parts industry. Overall, this year is not going well for us and we are expecting about 20-25 per cent decline in our turnover," said Ramjibhai Patel, president of Jamnagar Factory Owners' Association (JFOA).
Average turnover of the Jamnagar brass parts industry is estimated at about Rs 2,500 crore. For the past three years, the industry has sustained a turnover at this level, but due to slowdown in other industries, the average turnover is likely to drop to about Rs 1,800-1,900 crore for the financial year 2012-13.
Adding further Patel said, "As a normal course of market, we start receiving new orders prior to Janmashthami, but this year, new orders were almost nil. Due to slowdown, demand for brass parts across the world has declined. Indian market is also very weak for the last three months."
Since the demand is weak, brass parts manufacturers are considering to cut down the production. Many small units have already curtailed their operations by cutting down the working hours from 8 hours to 6 hours a day.
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"Due to worldwide slowdown, export from Jamnagar mainly to Europe has declined by 50 per cent this year. Earlier in 2012, rupee depreciation had affected brass scrape importers adversely and now due to less orders, import of brass scrape has also fallen by 50 per cent," Virjibhai Patel, vice president of JFOA.
According to Virjibhai, if sufficient rain will not come, then brass parts industry will definitely come under black shadow. 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 was about Rs 2,500 crore in 2011-12, and it employs more than 250,000 persons.