The Hindu Business Line : Pricol suppliers seek Govt intervention

Coimbatore, July 28 Over 200 single source suppliers to the Coimbatore automotive component manufacturer Pricol find themselves in a tight spot following the company’s decision to shift its assembly lines out of Coimbatore as the company perceives that the industrial climate “has not been congenial for continuing operations here.”

Most of these vendors, according to Mr Ramesh Veeraraghavan, President, Pricol Vendors Association, “bank solely on Pricol for business, having supplied to the company for over two decades now.”

Recalling their entry, Mr N. Nandagopal of the Association, Mr Sundaram, Treasurer, and Mr Veeraraghavan among others told reporters that they ventured into this trade soon after graduation, established small units and expanded operations in a phased manner, growing with Pricol.

Details shared with the press reveal that of the 1,100 suppliers to Pricol in the State, 206 are single source suppliers located in and around Periannaickenpalayam near here. The suppliers are estimated to have invested around Rs 250 crore and the combined annual turnover is said to have declined to Rs 100 crore from over Rs 250 crore two years ago.

Mr Veeraraghavan said, “Recession coupled with labour unrest at Pricol’s facility here since March 2007 has had an adverse impact on our earnings Nearly 70 per cent of our capacity is at present lying idle.” The Association, formed just a fortnight ago, has sought the Government’s intervention to resolve this issue amicably by talking to Pricol management and workers.

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