Date:22/12/2004 URL: http://www.thehindubusinessline.com/2004/12/22/stories/2004122201571700.htm

Back Coimbatore wet grinder industry hopeful of 20 pc growth by 2007 — Seeks distinct identity

R.Y. Narayanan

The Central Government is funding the Rs 36-lakh cluster development project... and the three-year project would run from 2004 to 2007.

Coimbatore , Dec. 21

WET grinder manufacturing industry in Coimbatore, which accounts for nearly 90 per cent of the market for wet grinders in the country, hopes to witness a 20 per cent growth in production once the three-year cluster development project, now in its first year of implementation, is completed.

It is also trying to make Coimbatore known internationally for wet grinders, by moving the Geographical Identification Registry (GIR), Chennai to establish the distinct identity of the Coimbatore wet grinders.

According to Mr R. Soundrakumar, Secretary, Coimbatore Wet Grinders and Accessories Manufacturers Association (COWMA), there are nearly 700 units, involved in the manufacture of wet grinders and their accessories including domestic, commercial and table-top wet grinders. The total number of wet grinders produced is around 60,000 units a month.. He said the Central Government is funding the Rs 36-lakh cluster development project for Coimbatore wet grinders and the three-year project would run from 2004 to 2007. The project has helped forge greater unity among the wet grinder manufacturers here.He said apart from bringing the manufacturers together, the project will help make an essentially south Indian product gain pan-India acceptance. He anticipated that by 2007, when the cluster development project would be in its third year, the industry would register a 20 per cent growth.

He said one of the positive developments was that a mutual credit guarantee fund has been created under which the members are able to get finance sans any collateral. Under this scheme, each member has put Rs 1.25 lakh and SIDBI has provided a matching amount as loan without interest, repayable in five years. Vijaya Bank has provided Rs 2.5 lakh as loan, taking the total package to Rs 5 lakh to each beneficiary.

Mr Soundrakumar said COWMA has formed three separate consortiums for purchase, marketing and for the benefit of arm- set manufacturers.

It is also seeking from the Centre a Rs 50-lakh grant for the establishment of a testing centre, for which assistance from Tamil Nadu Government is also being sought.

He said a major problem is the lack of uniform standards in wet grinders. COWMA wanted to address this issue so that product quality could be improved.

The association is in the process of engaging a consultant from Germany for developing a prototype of motor for exclusive use for the wet grinders. The consultant is expected to come to Coimbatore next month.