Ambala’s mixer & grinder industry battles for survival

Nitish Sharma

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Battling for survival, the mixer and grinder industry of Ambala is seeking relaxation in the Goods and Services Tax (GST) and favourable policies for its revival and to help it to face challenges posed by Chinese products and big brands amid rising manufacturing cost. 

The local industry has failed to adopt new technologies due to a lack of investment and proper guidance. It has been providing employment to nearly 6,000 people in Ambala.

People engaged in the industry say that it is unfortunate that kitchen appliances such as mixer and grinders, blenders, juicers, and choppers are being treated as luxurious items, while these are used in every kitchen every day. The industry has been facing a tough competition from Chinese products and big brands and now a high GST is hurting it.

Ajay Aggarwal, president of the Mixi Manufacturers’ Association, says, “There was excise exemption of Rs 1.5 crore, which lapsed after the introduction of the GST. Now, there is 18 per cent GST on our products, which is a matter of concern for small scale industrialists. Though the GST has been reduced from 28 per cent to 18 per cent, it is still high. There should be an exemption of at least up to Rs 50 lakh for small manufacturers”. 

“We are not against the GST but want that it should not be applicable on some categories. Products up to Rs 500 should be in the 5 per cent GST slab while products priced above Rs 500 should attract 12 per cent tax. Also, we have heard that the ISI certification is being made mandatory from May 1. If this happens, it will further increase our cost of production. At the same time, no official has approached us to guide us,” he adds. 

Aggarwal says that banks are not offering finances under various schemes of the Central Government. Ambala can play an important role in the Make in India programme and generate good revenue for the government. “This is the era of technology and automation but the micro, small and medium enterprises lack advanced technologies. Over the last few years, the cost of manufacturing has increased by over 50 per cent. In the current scenario, small manufacturers can't compete with famous brands and several of them are on the verge of shutting down their units,” he adds. 

The mixer and grinder industry has long been requesting the government to make it mandatory for big players to purchase at least 30 per cent of their total stocks from micro industries. “We have requested the state government to create a mini-cluster of the mixer and grinder industry so that we can improve the quality of our products to match the international standards and compete with bigger brands. The government has agreed to our request, and decided to set up a mini-cluster at Manakpur village in Ambala City for which the change of land use (CLU) permission has been granted. We are hopeful that it will be set up soon. The government will provide machinery worth Rs 2 crore and also construct a common facility centre,” he says.

The local manufacturers say that Chinese manufactures have been able to sell their products due to support from their government. The finishing of Chinese products is much better than ours but the quality of our products is better.