 "milling machine")
The scientific instruments industrial cluster at Ambala, which has not been in the best of health in the past few years, has started growing again. Competition from equipment imported from China, which had until recently posed a major threat to domestic units, is now helping in the revival of these small firms.
Forced to explore new opportunities, local manufacturers have started importing some components from China and assembling them into laboratory instruments. This has helped them to both cut costs and maintain consistency of equipment design.
Ambala's firms are importing Chinese high-range microscopes (such as flourescent microscopes and multi-viewing microscopes) for use in research because of their greater accuracy and quality. Some attachments for microscopes - such as lenses and cameras - are also imported. However, microscopes used in educational institutions are made in the local market.
Glass tubing and glass rods - raw material used in making blown-glass apparatus - is also imported. Local players have been importing them, as they are not available in the domestic market. The blown-glass apparatus segment has flourished in the past few years.
Ramesh Nagpal, the chairman of Cosmo Laboratory Equipment and president of the Ambala Scientific Instruments Manufacturers Association (ASIMA), said that the industry experienced a rough patch a few years ago as competitively-priced, higher-quality products from China conquered the Indian market and also invaded the international market.
Ambala's scientific instruments cluster is over 100 years old. Unfavourable market conditions had rendered many units unviable, and many manufacturers turned into traders, attracted by the prospect of making a killing in cheap imports from China. End-users also preferred imported items, as the latter were machine-made and offered consistency. Local manufacturers were making handmade items.
Dwindling business volumes forced entrepreneurs to scout for a solution to this problem, as they had good infrastructure and trained manpower, and the opportunity cost of diversifying into other businesses was high. Small manufacturers then began importing components and assembling them. This cut the cost for end-users and helped revive demand for local manufacturers.
Some entrepreneurs expanded the range of products they were making, and this has given a boost to their business. The cluster now has close to 1,500 tiny, small and medium-sized units with a gross turnover of Rs 1,200 crore. Exports amount to about Rs 400 crore.
Himanshu Jain, general manager of Jain Scientific Glass Works, is optimistic about the revival of demand. Glassware constitutes a substantial part of scientific and laboratory instruments. The growth of demand has not only helped existing units but also triggered a mushrooming of tiny units in Ambala. These tiny units supply glassware to small and medium-sized units, helping them to reduce costs.
As small units cannot invest much in research and development, the cluster had sought a tool room and a Common Facility Centre from the Haryana government's Department of Industries.
Owing to the small firms' lack of resources and the state government's flip-flops, both projects have been stuck in limbo.
The import duty on scientific instruments is 30 per cent and there is a duty on freight charges too. "If the Union government relaxes the import duty (which may fetch an insignificant amount for the exchequer), we can really contribute to the 'make in India' campaign. We can expand our basket of products for existing overseas buyers if concessions are offered on imports," said a senior member of ASIMA.
