Punjab fastener industry plans joint export house

To cash in on the boom in the international market, Punjab's fastener units have planned to set up a joint export house. Fastener units' exports have seen a steep increase in the past few years.

"We have plans to establish an independent joint export house involving fastener manufacturers," Fasteners Manufactures Association of India (Punjab) President Narinder Bhamra said.

The industry has not been able to accept any big orders because of capacity constraints and members of the association had mooted the idea of setting up a joint export house to get the benefits of the international market. A market survey also expected a big boom in the business after setting up the joint export house, he added.

"So far 75 units have agreed to become partners in the export house and once the work on the project begins, more and more units are expected to join the export house," Bhamra said.

The fastener industry of the state mainly exports to the west Asia, Dubai, Australia, the US and the UK and the total volume of export stands at Rs 400 crore per year, and with the execution of plan, it was expected that all units would get orders and export would also be increased manifold, Bhamra said.

The industry, which has been given approval by the Ministry of Small Scale Industry for establishing a fastener cluster, is currently looking for suitable land at three locations in Ludhiana.

"Although the quota system was scrapped in the international market, exporters of state are yet to benefit from the situation due to lack of infrastructure to meet the deadline of export of big orders," he added.

The Union government would provide 70 per cent of total expenditure on common facility centre by the industry itself and this cluster would be seen an investment of 759 crore by industry and it is expected to be operational within three years.