Aurangabad: The coronavirus outbreak has hit industries in this district of Maharashtra which is a prominent manufacturing hub, with companies finding it difficult to procure substitutes for Chinese parts. They have started sourcing products from other countries to continue their manufacturing without interruptions.
“Aurangabad has more than 4,000 companies and a large number of them source parts from China. The coronavirus outbreak in China has disturbed the supply chain of materials,” former chairman of Chamber of Marathwada Industries and Agriculture (CMIA) Prasad Kokil said Tuesday.
“The gap in the supply of raw materials can create problems. However, this is the chance to look for substitutes and decrease the dependency on Chinese parts. The micro, small and medium enterprises can grab this opportunity,” added Kokil.
Companies working in solar and energy sector have to import parts from China, solar and energy equipment manufacturer MP Sharma said. “The production of solar items has been impacted, as the supply of raw materials from China has been disrupted. We have found new alternatives in Vietnam and Taiwan,” informed Sharma.
“Imported parts make 60 per cent of our products. We need to buy them even if they are 13 to 15 per cent costlier than Chinese imports,” he added.
When asked if local MSMEs can profit from this development, CII’s zonal chairman Mukund Kulkarni said it would be highly unlikely as the parts will have to be delivered in a short span of time.
“We can make quality parts, but we may not be able to meet the demands in a short span of time. Hence, imports will continue, only the countries we import from will change,” said Kulkarni.
PTI
