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Auto makers drive hopes of city's fastener Inc

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09th November, 2019 09:47 IST
The halt in production had taken a toll on the city’s fastener sector, which is the biggest supplier of fasteners and allied products to the automotive manufacturers. Ludhiana: In a glimmer of hope for the Ludhiana’s ailing fastener industry, some automotive manufacturing companies have begun production after remaining shut for about four months.

The halt in production had taken a toll on the city’s fastener sector, which is the biggest supplier of fasteners and allied products to the automotive manufacturers.

Though the vehicle manufacturers have resumed just about 10% of their production, the fastener industry is upbeat over the development as the local businessmen are anticipating that the plants might resume 50% of their production by January.

Narinder Bhamra, president of Fastener Manufacturers Association, India, said, “Plants of all automotive manufacturers were shut for months due to recession in the auto industry. As a fallout, Ludhiana’s fastener industry had to cut its production by almost by 70%. We were also forced to reduce labour and suffered losses worth crores.

“Finally, after a gap of almost four months now, some vehicle manufacturing companies have resumed 8-10% production,” he added.

Bhamra said, “Though it is too little as compared to the volume of business required by us to break even, we have no complaint as we have started to get some orders. We are hopeful that the situation will improve in the coming days and by January the automotive manufacturers will start operating plants at 50% of total capacity.”

Pankaj Aggarwal, a fastener manufacturer, said, “It had been a nightmare for the past few months as the automotive manufacturers first reduced their purchase orders and later, stopped giving any orders to us totally and shut down their plants. We were left with no option than to reduce our labour and cut down our production by huge percentage.”

“Moreover, no one had any idea what will happen next, but luckily the auto sector has registered good sales in the festive season due to which some automotive manufacturers have resumed production and this is a big relief for us,” Aggarwal added.

Rajkumar Singla, president, Fastener Suppliers Association, Ludhiana, said, “The fastener industry was on verge of collapse due to the auto sector slowdown. Already our losses were mounting on a daily basis. Amid this chaos, the development of plants starting operation is nothing less than a very big relief for us.”

“It might be just 10% production, but our sales will resume. However, we request the central government to take cues from this entire episode of the auto sector slowdown and take corrective measures to ensure that this kind of situation does not occur again,” he added.
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