Demonetisation ground report: Metalworking units in Moradabad still struggling
, ET Bureau|
Updated: Nov 08, 2017, 01.32 AM IST
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Their clients are among the biggest names in global retail but some of the small metalworking units of Moradabad are still struggling.
“Business is not recovering,” said Mahesh Chandra Agarwal of Omsons Overseas Tradelinks whose clients include Walmart, TJ Maxx and others. “If demonetisation had not happened last year we could have clocked a turnover of Rs 42 crore. But I think we will only be able to do Rs 35 crore turnover this year. The annual growth of 10-15% we don’t see happening this year.” He’s not added to his workforce of 10 permanent staff and 10 artisans on daily wages due to the uncertainty.
The Uttar Pradesh town reputed for its brassware has about 2,500 exporters working in tandem with 25,000 manufacturing units employing about 200,000 people. Annual exports amount to Rs 7,000 crore while local sales add up to Rs 4,000 crore, according to industry estimates.
Raghav Gupta of CL Gupta Exports, which supplies brassware products to Ikea, said the impact of demonetisation had passed but the implementation of the goods and service tax (GST) has been challenging.
Third-generation brass craftsman Mohammad Imran, 25, said, “Business started picking up by February this year, but is still not close to last year’s level. Many artisans have started driving autos or become security guards. We used to have 20 people with us but now we are only seven.” The workers still prefer cash. “For buying raw material and sales we have always gone for digital transaction but artisans only want cash. It’s difficult to make them understand,” said Agarwal.
Delays due to demonetisation meant penalties, said Gaurav Ohri of Images Inc. “I had to pay Rs 12 lakh to the buyers as deliveries got late last year. Out of the 35 people I had to ask to leave after demonetisation, only 10 have come who agreed to open bank accounts.” Still, he added, “now things are normal.”
“Business is not recovering,” said Mahesh Chandra Agarwal of Omsons Overseas Tradelinks whose clients include Walmart, TJ Maxx and others. “If demonetisation had not happened last year we could have clocked a turnover of Rs 42 crore. But I think we will only be able to do Rs 35 crore turnover this year. The annual growth of 10-15% we don’t see happening this year.” He’s not added to his workforce of 10 permanent staff and 10 artisans on daily wages due to the uncertainty.
The Uttar Pradesh town reputed for its brassware has about 2,500 exporters working in tandem with 25,000 manufacturing units employing about 200,000 people. Annual exports amount to Rs 7,000 crore while local sales add up to Rs 4,000 crore, according to industry estimates.
Raghav Gupta of CL Gupta Exports, which supplies brassware products to Ikea, said the impact of demonetisation had passed but the implementation of the goods and service tax (GST) has been challenging.
Third-generation brass craftsman Mohammad Imran, 25, said, “Business started picking up by February this year, but is still not close to last year’s level. Many artisans have started driving autos or become security guards. We used to have 20 people with us but now we are only seven.” The workers still prefer cash. “For buying raw material and sales we have always gone for digital transaction but artisans only want cash. It’s difficult to make them understand,” said Agarwal.
Delays due to demonetisation meant penalties, said Gaurav Ohri of Images Inc. “I had to pay Rs 12 lakh to the buyers as deliveries got late last year. Out of the 35 people I had to ask to leave after demonetisation, only 10 have come who agreed to open bank accounts.” Still, he added, “now things are normal.”
