With a hope to grow by over 60 per cent this year, the Rajkot-based machine tools industry is eyeing Rs 800 crore turnover for the financial year 2010-11, as against Rs 500 crore revenue last year.
"Several individual units are expanding their manufacturing capacities, apart from more than 50 new players entering into this business. Add to that, demand for machine tools has also increased by 30-35 per cent over last year. These should help the industry garner a turnover of Rs 700-800 crore in current financial year," said Sailesh Kava, president of Rajkot Machine Tools Manufacturers' Association (RMTMA).
Rajkot has over 350 machine tools players, out of these 95 percent unit produce conventional machine tools and supply across India. According to industry sources during the past few years share of local consumption has increased from 10 percent to 20 percent as auto parts, foundry and engineering industry growing fast not only in Rajkot but also in the Saurashtra region.
"Couple of years ago, the industry had faced severe situation due to economic meltdown but this year we have orders more than our capacities. Small units are on expansion mode with the help of internal accruals," said Rupesh Mehta, former president of RMTMA and managing director of Macpower Industries. However, the industry still faces manpower shortage.
"While the industry has been growing on one hand, on the other it is also facing shortage in skilled manpower. Moreover, we do not have any proper technical educational institutes which can provide machine tools related education," Mehta added.
Meanwhile, RMTMA is organising 'Rajkot Machine Tools Show 2010' to strengthen its brand image in the Indian market. "Through this show, we are hoping to get more orders especially from auto industry," said Kava.
The industry is also preparing itself for technology upgradation with the help of United Nations Industrial Development Organization (UNIDO).
