Foundry in­dus­try starts col­lec­tive pur­chase of raw ma­te­ri­als

In­dus­try has re­cently pur­chased 43 tonnes of raw ma­te­rial, thereby sav­ing about per tonne

HT Ludhiana Live - - City - Sachin Sharma sachin.ku­mar2@hin­dus­tan­times.com LUD­HI­ANA:

To re­duce in­put costs, the foundry in­dus­try here along with its coun­ter­parts from nearby places have started com­mon pur­chase of raw ma­te­ri­als.

Go­ing ahead in this di­rec­tion, the in­dus­try has re­cently pur­chased 43 tonnes of raw ma­te­rial or ‘Ram­ming Mass’ thereby sav­ing about Rs 500 per tonne.

The raw ma­te­rial has been pur­chased from a firm based in Al­war in Ra­jasthan.

Pres­i­dent of the Lud­hi­ana foundry clus­ter Yash Pal Gosain said raw ma­te­rial pur­chased col­lec­tively is a step in the right di­rec­tion. The de­ci­sion for col­lec­tive pur­chase of raw ma­te­ri­als was taken in a meet­ing of in­dus­try peo­ple, in Jan­uary.

Gosain said, “It is a first of its kind step taken by any in­dus­try col­lec­tively in Lud­hi­ana and will pave the way for other in­dus­tries to fol­low and cut their in­put costs con­sid­er­ably.”

The raw ma­te­rial pur­chased will be dis­trib­uted among the mem­ber com­pa­nies of the spe­cial pur­pose ve­hi­cle ( SPV), Lud­hi­ana Foundry Clus­ter Pri­vate Lim­ited, as per the or­ders placed by th­ese.

The SPV will be look­ing af­ter all the af­fairs re­lated to com­mon pur­chase of raw ma­te­rial.

The foundry in­dus­try pur­chases raw ma­te­rial through the deal­ers. The in­dus­try peo­ple claim that this not only re­sults in high prices un­der tough cir­cum­stances be­ing faced by the in­dus­try to pur­chase raw ma­te­ri­als.

The huge cost of raw ma­te­ri­als saw traders com­pro­mis­ing on qual­ity whereas the bulk pur­chase will give them a chance to keep a check on qual­ity. The in­dus­try feels that with more in­dus­try-mem­bers join­ing the spe­cial pur­pose ve­hi­cle and mak­ing in­creas­ing or­ders, they will be able to save more on in­puts. The ini­tia­tive is un­der the pro­gramme ‘Scal­ing up sus­tain­able devel­op­ment of Mi­cro Small and Medium En­ter­prises (MSME) Clus­ters in In­dia,’ by foun­da­tion for MSME clus­ters.

Gosain said that foundry in­dus­try from Lud­hi­ana with 165 foundry in­dus­trial units, Phag­wara (18), Go­rayan (75), Phillaur (70) and Go­rayan (18) can be­come the mem­bers of this com­pany and avail the ben­e­fits.

The raw ma­te­rial that the in­dus­try pur­chases in­cludes: pig iron, hard coke, sil­i­con, man­ganese and some other foundry ma­te­rial.

The in­dus­try ex­pects of sav­ing up to 5% of in­put costs by col­lec­tive pur­chase.

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