Handtool makers stare at thin order books

Indian exporters of hand tools, who had gone to participate in the bi-annual Cologne Hardware Show in Cologne, Germany, felt let down by the less than enthusiastic response to the products they were offering.

The low bookings can directly be blamed on the rising steel prices. Sources said that around 100 exporters from Punjab, mostly from Jalandhar and Ludhiana, participated in the exhibition, where the response was in stark contrast to earlier years.

The exporters at the meet were also reluctant to book orders due to frequent fluctuations in steel prices. Fears of further escalation in prices forced many to order in bulk.

In terms of business, the Indian exporters who normally used to rule the exhibition had just got roughly about 30 per cent of the routine booking orders, which is alarming for the state handtool Industry.

"Earlier Taiwan was lagging behind India as far as the orders for the handtools in this prestigious fair was concerned but this time the situation is different," an industry source said.

Vikas Walia, a handtool manufacturer from Jalandhar, a participant at the show said that exporters from the state suffered due to the high prices of steel in the country.

The prices of the handtools manufactured by the local manufacturers increased a lot due to increase in steel prices so the international buyers were not seen interested in buying Indian handtools, Walia said. He added that the prices of the steel had increased globally.

Meanwhile, the industry in general feels that the government of India did not extend any help to the industrialists due to which the prices of the goods had increased up to 20 per cent, but on the other hand the governments in the other countries had provided major subsidies to industrialists due to which the prices of manufactured goods in those countries have been low.

SC Ralhan, regional director of engineering export promotion council, said that earlier the tools manufactured in the countries like Taiwan cost more than those from India, but this year due to the major increase in steel prices, the Indian products also became expensive, thus failing to attract the usual number of buyers.