INSUBCONTINENT EXCLUSIVE:
industry.In Chennai's Ambattur Industrial Estate the slowdown has crippled John Peter who makes valve components
Over the last five months, his 8 lakh monthly turnover has dropped by 90 per cent, to just one lakh
With Rs 40 lakh private bank loan he has defaulted in repaying his monthly instalment of around Rs 1 lakh
He has laid off three of his 13 workers
He has reduced the three hour shift to one."In today's situation I'm neither able to pay salary for workers nor repay loan
Banks don't listen when we say there is no business
They say they would come home and threaten us," Mr Peter told TheIndianSubcontinent.Chandrabose, one of his employees who used to earn Rs
18,000 a month has already suffered a third of it as there is no overtime opportunity now
The father of two school going children is now scared that the axe could fall on him soon
He says "I can live only if I have a job
Only if I have a job I can look after my family".Not far away Andrew Ranjithkumar has decided to dump brake component manufacturing his
family has been doing for 30 years
Orders from auto companies he says have fallen by 70 per cent
Unviable, now he's making parts for washing machines and home appliances
A third of his machines are also rusting for want of work.He said "There is no demand from automobile sector
We are pushed towards home appliances as otherwise we have to lay off people
We are unable to pay salary".This industrial hub with 2000 units employs around three lakh people
The industry has sought government intervention.N Sujeesh, President, Ambattur Industrial Estate Manufacturers' Association added, "We need
reduction in GST from 28 per cent to 18 per cent and for sub-contractors, small players from 18 per cent to 5 per cent
Lending rate is high and we need to bridge the gap between interest on savings and lending rate."With unsold cars worth Rs 35,000
countrywide, there's an abnormal hike in dealers shutting down
The industry has estimated a loss of 3.5 lakh jobs from car manufacturers to component manufacturers.S E Palanivel Babu, MD of True Sai
Works, a car dealer based in Salem has reduced his off -take by 35 per cent
He says dealers with huge borrowings are collapsing.He also blames it on manufacturers thrusting vehicles on dealers
He believes "In all developed countries market share is calculated on the end consumer
Only in India car market share is calculated on the basis of what manufacturers sell to dealers
This is a wrong way which leads to a wrong market share; the dealer is pressurised to hold more stocks and erosion of working capital in the
longer run".Many in the industry hope the upcoming Diwali season could shift car sales to top gear for a turnaround if the government
intervenes swiftly.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
