Major manufacturing sectors of Coimbatore hit by low demand
The main manufacturing sectors that contribute to the strong micro and cottage industry network in Coimbatore district are facing a slowdown in orders and drop in production.
Wetgrinders, which have a Geographical Indication tag, have seen a sharp decline in orders. 'It is difficult to put a number to the drop in production. This is primarily because of lifestyle changes. Hardly any households make idli batter at home as consumers prefer to buy readymade batter. The demand is only for commercial grinders now,' said C. Balachandran, president of the Coimbatore Wetgrinder Accessories Manufacturers' Association.
Industries that were manufacturing wetgrinders for households have reduced the volumes and very few are still in business, he said.
The other major product manufactured in Coimbatore is pumpsets. It is also a product recognised for the one district one product initiative.
Coimbatore used to boast of 40 % share in pumpsets made in the country. Substantial business moved to Rajkot because the manufacturers there are cost competitive. Usually, the first three months and last three months of a financial year are peak periods for pump manufacturers, because demand will be high when there are no rains, said Mithun Ramdass, president of the Southern India Engineering Manufacturers' Association.
In 2024-2025, there was a revival of business in the first three months. This year, however, demand is down 10 % to 15 % and there is no specific reason. 'We are unable to point any reason. There are multiple factors such as unseasonal rains in some areas and liquidity crisis even for farmers that are affecting the pumpset industry. There is not much pull in the market,' Mr Ramdass said.
According to him, export enquiries are, however, looking up. These will take time to firm up and may give the much-needed demand boost to the industry.
Coimbatore Tiny and Small Foundry Owners' Association president A. Shiva Shanmughakumar said of the 600 foundries in Coimbatore, only 350-400 are active now. The demand from automobile sector is good. The other sectors are not doing well. 'Almost 40 % orders, mainly from the large industries, shifted to Gujarat as the foundries in Coimbatore are expensive by 10 %. Even for the orders that are available, there is more than 50 % labour shortage,' he said.
Workers from the northern States are reluctant to return to work in Tamil Nadu and this is bringing down production now, he said.
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