A strong American dollar coupled with good orders from the export market has given new lease of life to Jamnagar’s brass parts industry. The recession, which started with the beginning of the year, had forced the industry to cut down production by 15 per cent.
Starting afresh after a vacation of seven days, the industry is bullish with new export orders following strengthening of the US currency. The total production of finished brass parts would touch 200 tonnes a day, expect industry leaders.
"This is the best time for local brass parts industry to fight the bearish phase. The industry may extend the working hours to complete the export order before festive season of Diwali," says Ramjibhai Patel, President, Jamnagar Factory Owners Association.
Though sluggish demand had forced units to cut production at least 15 per cent in recent past, the new orders will improve the condition significantly, added Patel.
"The scenario would change September onwards and electric brass parts would contain a greater portion in new orders. Besides, local industry has witnessed more orders for petromax and stove," believes Virjibhai Patel, Vice President, Jamnagar Factory Owners Association.
"Fresh demand for auto parts would start within one and half month. I don't see any sign of bearish trend for at least next two and a half month," added Patel, who is also owner of Bharti Auto Products.
On the other hand, the stable prices of brass scrap for more than four months, at Rs 257 to 260 per tonne, would help the industry in future. Earlier this year, the industry experts didn't expect export orders more than Rs. 350 crore.
However, with spiraling dollar and new orders the export would cross Rs 600-crore mark, say industry sources. Though average export of Jamnagar based brass parts industry is around Rs 650 crore per annum, the long recession period this year may cause some down fall.