Foundries in Coimbatore hike casting prices by 10% to offset escalation in input costs

Coimbatore: The Coimbatore Tiny and Small Foundry Owners Association has announced a 10% increase in casting prices with immediate effect to offset the impact of sharp escalation in input costs.The decision was taken at an emergency consultative meeting of the association on Saturday. Pointing out that Coimbatore has held a prominent position in the growth of foundry industry for more than 45 years, association president A Sivashanmugakumar says the district is home to more than 400 tiny and small foundry units, providing direct employment to around two lakh workers and supporting the livelihoods of nearly five lakh people indirectly. According to him, the sector generates an annual business turnover exceeding Rs2,500 crore. "Prices of key raw materials such as pig iron and scrap have surged by up to 20% in recent months. While only 30% of the scrap is imported and the remaining 70% is sourced domestically, imports, primarily from Australia and Europe, have been affected, with prices rising due to disruptions linked to global tensions. Despite pig iron being produced domestically, a production decline of nearly 60%-70% has further driven up the costs," he said. In addition, Sivashanmugakumar says, prices of allied materials, including petroleum-based products such as oils and paints, have increased by 20% to 40%. These escalating costs have placed significant financial strain on the small and tiny foundries, pushing many towards unsustainable losses, he says. "In order to sustain operations under these challenging conditions, we have unanimously decided to increase the price of casting products by 10%," he said, adding that the hike would be implemented immediately. The association has urged the Centre to establish raw material banks in the Arasur and Manickampalayam foundry clusters to stabilize supply. It also sought a reduction in GST on small foundries from 18% to 5% to support the sector.
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