Conflict in West Asia hits foundries of Shivamogga, industries fear temporary closure

Medium-scale industries manufacturing metal castings in Machenahalli Industrial Area near Shivamogga are severely hit by the ongoing conflict in West Asia.

Facing the shortage in the supply of raw materials, along with rising logistics costs, industrialists fear they may have to halt production if the conflict continues for a few more weeks.

The industrial area is known for foundry and allied industries. About 120 units have been active in the area, providing direct employment to about 8,000 people. Altogether, about 12,000 families are dependent on the industrial activity. These units export their products to the USA, Europe, Australia and other countries.

“If the conflict continues for another month, we will have to stop our units,” said S. Rudre Gowda of Shanthala Group of Industries. The supply of raw materials, particularly resin, alcohol-based refractory coatings, sleeves and filters – necessary for moulding work – has been hit badly.

“We are managing with the available stock. Suppliers are not assuring us quantities in line with our demand. Similarly, the prices have also gone up. If the conflict does not stop soon, we will have to pull down shutters,” remarked Rudre Gowda, who is also a former MLC.

Former MLC and industrialist S. Rudre Gowda (centre) with fellow industrialists D.G. Benakappa and H. Mahendrappa.
| Photo Credit:
S.K. Dinesh

Shanthala Spherocast Private Limited (SSPL) manufactures about 1,200 tonnes of castings in a month. “In the last month, the production has been hit badly, bringing down the manufacture by 20%,” said Ashok D.B., Managing Director of the firm.

The industries are facing a shortage of LPG and petroleum products. “Resin is most essential for the moulding process in our industry. Our suppliers are not confirming the supply. As a result, we are not in a place to confirm the supply of our products to our clients,” said Ashok.

LPG cylinder shortage

Foundry industries require LPG cylinders for mould heating in the manufacture unit as well as for the canteen serving workers. “We have been offering food for our staff since 1998. For the first time, we closed it for a week due to the non-availability of LPG cylinders,” said Chandrashekhar D.S., vice president of SSPL and past president of The Institute of Indian Foundrymen.

The company initially asked employees to bring food from home. However, it was forced to resume the canteen facility, especially for workers in the early morning shift, though the menu has been significantly limited.

The Shivamogga – Bhadravathi Industries Association recently met the Deputy Commissioner of Shivamogga and appealed to ensure the industries get commercial LPG cylinders, as the shortage would affect the production. D.G. Benakappa, president of the association, said that the disruption in the supply of byproducts of crude oil affected the manufacturing.

“Our clients are not bothered about our problems. They insist on on-time delivery. On the export side, we are experiencing non-availability of containers and a sudden increase in freight and insurance costs,” said Benakappa, who is also executive director of Vijay Technocrats Pvt Ltd.