2 days ago
Buoyed by BHEL's strong order book, new ancillary units spring up in Tiruchi and Pudukottai districts
At least 30 new ancillary industries of Bharat Heavy Electrical Ltd. (BHEL) have sprung up in Tiruchi and Pudukottai districts over the last one year mainly due to the high volume order book of BHEL.
There were about 425 micro, small and medium enterprises (MSMEs) in Tiruchi district when the fabrication industry was functioning at its peak. Dwindling orders and its cascading impact severely hit the financial health of most MSMEs. At least 100 units turned out to be non-performing assets (NPA) and they eventually became sick and shut down their operations. Several others were facing severe strain on various aspects and they were only on record.
According to industry sources, only about 120 units could manage to run the show by sourcing orders from various places and the BHEL. The piling up of orders for boilers with BHEL by various State owned electricity boards and companies has changed the tide in favour of ancillary units in Tiruchi.
According to sources, at least 10 units, which closed down due to poor financial health, have restarted their operation. Similarly, 30 new companies have set up their units in Tiruchi and Pudukottai districts. With this, the number of ancillary units, which have received orders from the BHEL for producing various components of boilers, has gone up to at least 150. A senior official of BHEL, who spoke at MSME day celebration in Tiruchi on Friday, confirmed the number of new units. He stated that more companies are setting up their units.
Some units that turned into non-performing assets are set to be revamped by injecting funds and engaging new partners and players.
'We continue to receive orders from the BHEL for various components of boilers. It is searching for competent vendors to produce various components. We understand that there will be no issue on orders front for the next 10 years. Hence, many players, who left for other ventures by closing their units due to poor orders, have evinced key interest to revive their units or launch new units in Tiruchi,' says R. Kanagasabapathy, former Chairman, Tiruchi Trade Centre.
