Kolkata, Sep 21 (Inditop.com) The Rs.1,600-crore Indian electric fan industry, hit badly by the economic slowdown last year, does not see any respite in the coming six to nine months, an industry player said here Monday.
“Our domestic sales as well as exports suffered last year. This year it has improved slightly but we don’t see any ray of hope in the coming six to nine months time,” Manoj Verma, chairman of Indian Fan Manufacturers Association (IFMA), told reporters.
Various factors ranging from high input costs to high incidence of value-added tax (VAT) and excise duty are adding to the woes of the industry, he said.
“The issues that are main constraints to us are higher VAT and excise duty, low abatement rate of levying excise duty, lower export incentives and procedural problems for refund of 4 percent additional customs duty,” Verma said.
The volatility of key raw material prices like copper, aluminium and steel is taking its toll, he said. In India, copper price is ruling around Rs.360 per kilogram, which was Rs.290 six months back.
The consolidated production of the industry was around 21 million fans during 2008-09. The growth recorded was 0.74 percent over the previous year. During that period domestic sales had recorded a growth of just 2.3 percent over the previous year.
The industry exports only 10 percent of its produce to countries like South Africa, South America and parts of Europe and the US.
