Rajahmundry graphite crucible industry in doldrums

Graphite crucible manufacturers here are struggling for their existence in the face of competition from multinational companies as they are lagging behind in latest technology.

Another problem dogging it is difficulty in procuring graphite, the key raw material of the industry.

Rajahmundry is the hub of graphite crucibles in the country. Clay-based crucibles are manually manufactured by skilled labourers here that are used for melting metals like brass, copper, aluminum, cast iron, steel, silver and others.

Every foundry from Kashmir to Kanyakumari in the country used to depend on graphite crucibles made here.

The industry came to Rajahmundry in the 1920's using German technology and by and by got recognition as the king among crucible manufacturers. Even the railways and the government mint procured crucibles in bulk from Rajahmundry.

But, the advent of multinational companies (MNCs) have left the local industry choking.

They (MNCs) have their units in Maharashtra, Gujarat and other states. Even those who heavily depended on Rajahmundry clay crucibles have switched over to silicon carbide-based crucibles being manufactured by MNCs with latest technology.

Orders from even the railways and government mint have dried up serving a severe blow to the local industry.

Of over 125 companies located here, only 50 to 60 with a turnover of Rs 5 crore per annum are working at present while others have closed in the face of mounting losses.

"We have lost 70 per cent of the market in the last five years" said V Venkatrao, former president of All India Graphite Crucible Manufacturers Association.

Both prohibitive cost of graphite and its inadequate supply are the other causes for the decline of the crucible industry here, according to him. Apart from stiff competition from MNCs, the cost of production has gone up in view of shooting price of graphite, which now costs Rs 20,000 per tonne as against Rs 16,000 per tonne earlier.

The Tamil Nadu Mineral Development Corporation (TNMDC) used to supply adequate raw material to the Rajahmundry producers.

But the the corporation has stopped the practice of supplying graphite as much as was need by the manufacturers here and introduced the system of calling for tenders. This has resulted in a cut-throat competition among the manufacturers here.

Against this background, crucible manufacturers here have sought the intervention of the state government to seek Centre's directive to the TNMDC for unhindered supply of raw materials. The Union ministry of mines also came forward to bail out the crucible industry.

The ministry of small scale industries has identified graphite crucible industry here as a cluster and appointed APITCO as an implementing agency.

The All India Graphite Manufacturers Association along with the APITCO officials approached IIT-Chennai and other institutes for upgrading technology. But their efforts have failed as they have not been able to find a suitable technology to replace skilled labour.

"The industry provides employment for over 1000 skilled workers. The government should do something to revive the industry without displacing them,'' said Venkatrao.