Rajkot machine tools firms aim at 10-fold growth

The machine tools manufacturing sector of Rajkot, which comprises around 200 units, aims at increasing its turnover to Rs 4,000 crore by the end of 2010.

The Rajkot Machine Tools Manufacturers' Association (RMTMA) has appointed a consultant and the cluster is also being assisted under the United Nations Industrial Development Organisation (UNIDO) programmes.

Moreover, the RMTMA members have adopted a vision 2010 document, which envisages becoming the low-cost producer of machine tools in the world through volume production of general purpose machines.

"With several units upgrading their capacities to manufacture high precision computerised neumatic control lathe machines, we will be able to increase our turnover 10 fold by 2010 from Rs 400 crore at present. These machines are priced at Rs 15 lakh and more, which is cheaper than the prices in Europe or US," said Rupesh Mehta, president of RMTMA and managing director of the Rajkot-based CNC Machines.

RMTMA is participating in the Engineering Expo, Gujarat's largest trade fair on industrial products and technology, that is being held in Ahmedabad.

Mehta said by 2010, Rajkot will overtake Bangalore, which at present is India's largest machine tools manufacturing cluster.

"There is an opportunity for exports that is building up because of appointing a consultant and the association with UNIDO. UNIDO, in fact, helped the association to visit a trade fair on machine tools in Milan, and we have begun to bag orders from there too, because of the price advantage," said a member of RMTMA.

The association has appointed a consultant, Shailesh Sheth, to explore growth opportunities.

While RMTMA was established in 1983 with the objective of ensuring supply of bearings to members at reasonable prices, the units have been working as a cluster for over 50 years now. The association has also taken up issues like taxation, power problems and the like with authorities concerned.

Some of the products manufactured by the Rajkot machine tools cluster include heavy duty lathe machines, special purpose machines, several variants of power presses and the like. Machine tool manufacturers are still concerned on the high sales tax in Gujarat, stating that it affects sales of high value machines.

"Sales tax in Gujarat is eight per cent, while it is four per cent in other states. In case of machines valuing around Rs 50,000 it does not make much difference, but the cost difference is substantial for machines priced at above Rs 15 lakh," Mehta said.