Punjab hand tool SME sector upbeat about 2010-11

Although 2009-10 proved to be tough for most of the Punjab SME hand tool manufacturers and exporters, there is a growing wave of optimism within the segment with regard to their business prospects in 2010-11. Exporters in this segment, which witnessed negative growth and suffered huge losses during the last 2 years due to the adverse economic conditions, are now of the view that exports would recover in the coming financial year.

Riding on positive note

With global economic climate looking up and exports showing steady growth over the last few months, the SME hand tool export sector in Punjab, which accounts for 70-80% of the total hand tool exports from India, expect to bounce back in the next financial year.

"Steady business enquiries are flowing in from overseas buyers for export of hand tool products made by Punjab SME tool manufacturers. Although it is still lower in quantum than what the exporters received before the onset of the global economic slowdown, the present situation looks better," said Sharad Aggarwal, convener, hand tools panel of the Engineering Export Promotion Council of India (EEPC India)

However, industry representatives also reiterated the need for SME hand tool exporters as well as manufacturers to undertake sincere efforts to convert the queries into orders.

"Innovating products as well as diversifying hand tool product basket is likely to help SME hand tool exporters and manufacturers to reach out to more buyers and get back the momentum that they enjoyed during the years preceding the global financial crisis," said Ajay Goswami, proprietor of Ajay Industries, a mid-sized export unit of hand tool products in Jalandhar, Punjab.

Although SME hand tool manufacturers are regaining their confidence on the back of pouring enquiries, they need to tread with caution and exercise prudence as the market is yet to emerge from the shadows of recession.

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