News 

(Rs. in Lacs)

Industry Structure and Developments

The performance of Fastener Industry is linked to the automobile sector. The Financial Year 2012-2013 was a year of Slow-down in Automobile Industry because of unfavourable economy involving policy changes. In 2012-2013, prominent companies such as Maruti Suzuki India Ltd, Tata Motors Ltd and Hero MotoCorp Ltd had to cut production at their respective plants which affected fasteners industry also. The entire automobile market grew 2.61% in 2012-13. Society of Indian Automobile Manufacturers (SIAM), expects the industry to grow 6-8% in 2013-2014, largely on account of an expected cut in interest rates and an economy that will expand faster than the 5% at which it is believed to have grown in 2012-2013. The government expects the economy to grow by between 6.2% and 6.7% this year.

The challenges for Fastener Industry include:

a) The growth of Automobile Industry which affects the growth of Fastener Industry is a matter of concern.

b) Increased prices of raw materials not getting adequately compensated from Customers leading to low margins.

c) Stiff Competition with Organized as well as Unorganized Fastener Industries.

d) Another challenge is to face competition in the export market with Taiwanese / Chinese Fasteners manufacturers because of their low cost.

e) Challenge to produce environment friendly fasteners which do not use carcinogenic plating such as chromium/ cadmium and to keep looking for more ways to produce more stronger, more lighter and more easy-to-use fasteners than ever before.