SMEs in India are now gradually opting for low and mid-priced but new machineries, as opposed to earlier days, when they used to make heavy purchases of pre-used machineries. Some of the small industrial units have also begun placing orders for imported products from not only domestic suppliers but also new markets such as Korea, Brazil, Turkey, China and Taiwan. Resorting to new tools According to the estimates provided by the Indian Machine Tool Manufacturers’ Association (IMTMA), the quantity of consumption of metal-forming new machines stood at 2636 units, with the value of consumption being estimated at Rs 1119.5 crore during April-September 2009. The figures are suggestive of the fact that the use of new machines is on the rise and small units have slowly started moving towards newly manufactured equipments and upgraded machineries. â€Most small businesses have started looking at new and competitive machineries being offered by low-cost equipment manufacturing hubs, as new machines prove to be better than pre-used ones in terms of functionality and productivity,†said A Kapoor, director of Dtool Connexions, a New Delhi-based leading exporter of machine tool products. SMEs are now exploring opportunities to source low-priced machines from not only countries such as China, Brazil, Turkey and Korea but also domestic suppliers in India. For sourcing high-end technological tools, small players are looking at countries such as Germany, Spain, Italyand Japan. â€Given that the cost of machines manufactured in countries such as China and Korea is cheaper yet they are technologically advanced than those available in other countries, SMEs are turning to these markets for sourcing their requirements. Moreover, Indian manufacturers are also improving their offerings, thereby prompting small units to purchase from them,†said S Banerjee, proprietor of Kamal Motor Works, a small-sized pump manufacturing and repair company in Kolkata. The heightened market competition and the need to become innovative for acquiring an edge over other competitors in the market have made it important for SMEs to slowly move away from the pre-used machinery market towards low and mid-range-priced new machines.
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