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Challenges Facing Brass Parts Industry in India

The brass parts industry is an intermediate industry, supplying to a range of industries that use brass as a component. This includes electronics, pneumatics, hydraulics and more. The growth of the brass parts India, hence, depends on the growth of the industrial sector overall. The defining news here in the recent years has come from both the domestic and international sector.

International growth
Traditionally, the industry dealing in brass parts India has largely been confined to the domestic markets. Parts of the reason were India’s own closed markets. Later the bulk of the exports were limited to African States. However, aggressive marketing has opened up this share. Today India also exports to American and European markets.

The share of exports has also increased by double. From a mere 10%, the current share of exports in total turnover is 20%. While this is still a fairly low share, the impressive growth in a short time span is a good sign. Added to this is the fact that these are high value markets that are expected to improve both volumes and value of exports.

Unfortunately, the scenario in the domestic market has not been as rosy. After high demand the recession after 2008 dropped domestic demand, bringing down the prices and creating surplus reserves, which further brought down the prizes. However, the situation on the ground may slowly start to look up as the economy comes slowly out of the slump.

But before this we need to address some of the challenges facing the brass parts industry in India:

Fluctuating prices:
Brass is not ferromagnetic. This makes it easier to separate from ferrous scrap. This is why brass makes for such an excellent recyclable material. Its malleability adds to this advantage. Almost all the brass used by the Indian brass parts industry is from brass scrape. This brings it to the first hurdle. One of the major concerns for brass parts manufacturers is the fluctuating prices of brass scrape. While a manufacture may buy the brass today at the best price available, this may further drop by the time production processes are complete. The drop in price of raw material impacts the cost, which also comes down. The problem occurs when the new price leaves little profit for the producer.

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Lack of consolidation:
Brass industry in India is mostly run by the SME sector. There is a dire lack of coordination. This effects the industry’s bargaining and negotiation power with the government, particularly on duties imposed on brass scrape. It also hampers the impositions of an industry standard.

Increasing competition:
This is often cited as one of the biggest challenges. After the boom in industrial growth in the last decade, there was a mushrooming of small units in brass parts India. While the domestic industry has faced a recent slowdown, the competition has been fierce. As a result, smaller firms have found it harder to stay afloat.

Need for machining:
The brass parts industry is becoming increasingly specialized. Complex machinery demands very precise and customized products, which can also be achieved through brass machining. However, many smaller firms in brass parts India have failed to invest enough in machining or training their personnel.