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Tuesday, 3 November 2020

Low demand, high input cost bane of Ambala industry

Nitish Sharma

Tribune News Service

Ambala, November 2

Lower demand coupled with higher input cost continues to be a major cause for concern for the local scientific apparatus manufacturers, who have already been struggling to tide over the challenges posed by the Covid pandemic.

They apprehend that it would take a couple of years to revive the industry.

A scientific instrument manufacturer said, "More than 1,500 small and big units in Ambala employ about 20,000 people. The Covid-induced lockdown has brought these units on the verge of closure. A majority of them have fired the staff because of suppressed demand and high costs."

Sanjay Gupta, president of the Ambala Scientific Instruments Manufactures Association, explained the reason behind the sorry state of affairs. "The bulk of the apparatus is purchased by educational institutes and engineering colleges. Since colleges were closed because of the Covid-induced lockdown, the demand remained low."

Covid exacerbated situation in district

The bulk of scientific apparatus is purchased by educational institutes and engineering colleges. Since colleges were closed because of the Covid-induced lockdown, the demand remained low. —Sanjay Gupta, Prez Ambala scientific instruments manufactures association

He said pointed out other problems: rising transportation and input costs. "The cost of electric components has increased by 20 to 50 per cent, but the industry is no position to raise the prices of products. The units are taking orders on old quotations. Higher input cost has eaten into our margins," Gupta said.



from The Tribune https://ift.tt/3jPW3eb

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