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After registering a decade long of nominal growth, the Jamnagar based brass parts industry is witnessing a turnaround on the back of increased exports.
While earlier exports formed less than 10% of the industry's total turnover, most of which came from the African region, the industry is now bagging orders from USA and Europe that have pushed share of exports to close to 20%.
What's more, the revival of sorts is being attributed to growing adoption of technology for exploring business.
According to Jinesh Shah, managing director of Rajhans Impex Private Limited and member of the Jamnagar Factory Owners' Association (JFOA), from exploring new regions and reaching out to potential clients over the Internet to attending international industry seminars and exhibitions, the new generation of entrepreneurs are redefining the way the brass industry was functioning so far.
"Seminars held by government and various trade associations globally have been helping the industry on the business development front and opening up new avenues for exports such Europe," Shah said while adding that unlike conventional regions like Africa, it is the new regions like US and Europe that have helped push up the exports.
Apparently, five years ago, total exports formed a mere 3-4% of the industry's overall business. However, the same has been gradually increasing since last three years and nearing 20%. In the past, the Jamnagar based industry exported brass parts worth Rs 300 crore out of its total turnover of Rs 6,000 crore to mostly African countries.
As compared to that, last year in 2014-15, the industry registered exports of about Rs 2,000 crore to regions like USA and Europe, along with African countries. Exports have also extended to Asian countries like UAE, Saudi Arabia.
According to Lakhabhai Keshwala, president of Jamnagar Factory Owner's Association (JFOA), it is the real estate and electronics industries that have pushed demand for brass parts in the European region.
"European brass parts tend to be costlier than those from India which enables the industry to bag export orders from EU countries," said Lakhabhai, adding that Indian products tend to be almost 30% cheaper than European made brass parts products due to high labour costs.
The domestic market for brass parts in India, on the other hand, has been on the gradual decline due to economic slowdown.
"Since last couple of years, the industry is not doing well on the domestic front because of over production capacity and dull demand. However, industry players have diverted their attention towards exports and trying to capture newer markets which so far had been very negligible in their overall business", said.
On the domestic front, after 2008 recession, demand for brass parts sharply rose in 2010 which led to production capacities being expanded by 30-40%. However, domestic demand for brass parts fell gradually, leading to over capacity.
While European countries' share in exports is not so significant, brass manufactures are hopeful the same could go up even as raw material prices continue to fall. Recently brass scrape prices dipped by Rs 5-8 per kg to stand at Rs 322 a kg,
There are nearly 5,000 brass parts manufacturing units in Jamnagar and over 80% of them in the small-scale category. The industry employs over 200,000 people,
