Small sector companies reaping dividends in global financial slowdown
Chandigarh, Feb. 20: While several major companies across the world are today blaming the global financial slowdown for their all ills, the same reason has proved to be a boon for many small-scale units in Punjab.
Making best in the ''worst'' times, small-scale units in Punjab are not only surviving but they are doing impressively well, as many clients are approaching smaller firms to get products at lower prices.
Even as bigger units cut down production and costs, orders are being re-routed to the small-scale sector.
Over 1,200 small-scale units in Mohali alone, are mostly engineering goods and automobile manufacturing units that have grabbed low volume orders that have come their way.
It happened after the bigger units started reducing their production and focusing on cost-cutting methods, which ultimately led to orders coming to the small-scale sector in the State.
"They operate on lower-levels. They don''t have many overheads. Major saving is from the overheads, as in the large scales, the overheads are very high but in small industries overheads are low, so they are competitive and they can operate on low volumes also. The demand is also lesser," said B. S. ANAND, the President of the Mohali Industries Association.
Chandigarh-based Techaids caters to a wide spectrum of industries like Dry and Wet Textile Processing, Textile and Paper calendaring and Embossing Cold Rolling Mills.
The company has many new clients and believes that innovation is the key to success even in a demand-starved economy.
"This is the real test, when you are really having depth in your thoughts, actions, words and thinking. These are the times when you really reap the richest harvest because these are the times when all the weak competitors will just vanish. We only have to be little more assertive. These are the times when good people will be available at a moderate cost. These are the times when you really can invest into technology at a moderate cost, so I would like to say [in a way] that recession times must happen," said H. M. Singh, Managing Director, TECHAIDS.
"I don''t say it should really remain for a long but unless these happen, people don''t realize what God has given to them. They take everything for granted so the moment the things are being taken for granted, that time the recession really comes," said Singh added.
Punjab''s thrust for latest technology in sectors like textile and garments will also be fulfilled. Foreign companies are making a beeline to the state to sell their technology at discounted rates.
Industry experts say that the companies strategizing in terms of adding new product lines and re-deployment of workforce, will be the ones to survive the economic slowdown.
"I think it''s a question not to sit idle if there is a recession and if I sit idle, it would affect me more. My profits will be low and so I have to think of how to increase my profits. I don''t have to go in for my existing business because I am not getting this business. I have to think what business can be combined with the existing business," said Dr. A. K. Vashisht, and Industry Expert.
Be it textiles, leather, auto components, sports goods or agro-processing, Punjab state has a strong industrial base in these sectors.
Besides, the State government is ensuring that there are no hitches in the industrial take-off with natural resource development, infrastructure and human resource development and creation of an investor friendly environment. (ANI)