2010 looks better for Coimbatore engineering sector

Despite witnessing a dismal 2009, small units in the engineering sector in Coimbatore, Tamil Nadu (TN) have welcomed 2010 with an optimistic outlook. The improving economic scenario, both on domestic and international fronts, has made engineering units hopeful that this year will bring in better returns on investments (RoIs) and offer them an opportunity to make headway in the global platform.

Small engineering units ready for capex plans

Even a few months back, most of the small-scale units were struggling to stay afloat amidst the global economic slowdown. However, 2010 appears to have started on a positive note as most industry representatives believe that the sector is on its way to revival. The once-prevailing grim mood among the region's SME engineering firms is now giving way to a more optimistic mood.

'Engineering industrial units seems much better placed now than they were during last year. The surge in global market demand over the last few months is a reason enough for small engineering units to be hopeful that this year will be a good one,' said EJ Vincent, proprietor of A.D. Paul & Co., a small-sized manufacturing unit in Coimbatore.

Industry representatives are of the view that engineering firms in Coimbatore will soon chalk out huge capacity plans once the TN government allows them to source power from outside the region. This measure would also enable them to maintain their production with the help of uninterrupted power supply.

'Although sourcing power from outside the region will lead to hike in the power cost for small-scale units in the engineering sector, we are confident that we would be able to absorb the increase in cost once we are assured regular supply without load shedding or peak-hour restriction,' said T Santhamani, proprietor of Hydraulics, a small-sized manufacturing firm in Coimbatore.

The SME engineering sector in Coimbatore has also pinned its hopes on the forthcoming Union Budget and feels that the continuation of government support will enable the segment to record good growth figures in 2010.

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