Rupee-dollar fluctuation hits scientific instrument clusters in Ambala

Frequent fluctuations in the value of the rupee vis-a-vis the US dollar in the past few months have hit the scientific instrument clusters in Ambala, one of the largest in the country.

According to Puneet Gupta, general secretary of the Ambala Scientific Instruments Manufacturers’ Association, the frequent variations in the value of the rupee against the dollar have hit the already squeezing margins. He added that the value of exports of individual units is not large enough to resort to the modern banking instruments like hedging.

Most of the units were micro and small scale units. Due to the low value of exports, the frieght charges at time overrun of the total value of consignment. The consignments were to be delivered on FOR (at customers office), he said.

Ashwani Goel, the president of the association, apprised that a number of local issues like erratic power supply, high power tarrif, non-availability of labour have made many small units unviable. The dollar-rupee fluctuation was the last straw in the camel’s back.

The industry, which is about 50 years old, consists of a cluster of almost 500 small scale and cottage units.

The scientific instruments cluster of Ambala exports more than 50 per cent of its output to the developing counties of Africa, East Asia and West Asia.

The industry employs about 3,000 skilled and semi-skilled workers and has an annual turnover of Rs 450 crore.

The political crisis in West Asia has severely hit the industry as it was a major export destination.

According to the local players there is a tremendous potential as there is a thrust on education and many new schools and colleges are needed to achieve 100% literacy. They said that they can generate a business of abour Rs 1000 cr annually with a little bit of hand holding.