Coimbatore fabrication units plan huge investment

Coimbatore: The fabrication industry in Coimbatore is set for a major push with the launch of large projects in both public and private sectors in and around the city and with outsourcing opportunities from foreign companies.

It is estimated that the Coimbatore fabrication units, most of them in the SSI sector, would invest close to Rs 500 crore in the next five years to ramp up production/create new capacity and the turnover from the segment alone is expected to be about Rs 2,000 crore.

Mr D.Gandhikumar, Chairman, Fabtec India 2009, and Mr K.Ilango, President, Coimbatore District Small Industries Association (Codissia), said globally, the fabrication, welding and coating industry has experienced a shift in growth prospects because of the industrial development in the BRIC countries (Brazil, Russia, India and China).

There has been a paradigm shift in the industries on which this sector is dependent it was earlier on transportation, packaging, building and consumer products but with the emerging economies concentrating more on infrastructure development, including machinery and equipments, shipbuilding and container and packaging among others, there has been a change in the growth dynamics of this sector.

It has been estimated that about 220 units in Coimbatore are involved in fabrication and related activities. Many of them are suppliers to companies such as BEML, BHEL (at Tiruchi, Ranipet and Hyderabad), Suzlon and many automobile companies. When asked about the expected new investment in the fabrication units to cater to the needs of new industries that are expected to be established in and around Coimbatore, such as the rail coach factory and BEML factory at Kanjikode in neighbouring Palakkad district of Kerala, the Suzlon and L&T units near Coimbatore, Mr Ilango said ‘at least’ Rs 500 crore of investment would be required for the fabrication units alone. The fabrication industry has the potential to increase its turnover to around Rs 2,000 crore in the next 3 to 4 years.

Mr Gandhikumar, who is also the President of Tamilnadu Small and Tiny Industries Association, said historically, Coimbatore industries played a vital role in the fabrication segments such as boilers and heat exchanges. It was their inability to upgrade themselves which saw them lose out to others.

Fabtec India 2009 fair for sheet metal fabrication, coating and welding industries is to be held from January 21 to 25 at Coimbatore. The expo is being organised by Codissia in collaboration with P.E. Schall GmbH & Co of Germany.

It is for the first time a separate exhibition for the fabrication and welding segment is to be conducted. The foreign participants are expected to bring in the latest machineries that also rank high on environment protection, energy savings etc. It is not only the automobile industry that was supporting the fabrication sector, others like petrochemicals, valve manufacture, pipeline production etc also play an important role in the flourishing of the industry, which would provide a push to the economy of Coimbatore.

More than 65 companies, including over 12 from Germany and others countries such as Netherlands, Austria, Japan and India, are participating in the show.

Mr Gandhikumar said the fair would provide an opportunity for companies not only to display their wares but also to identify potential outsourcing partners in Coimbatore.