‘Survival, not profit, should be the aim of bizmen this year’

INDUSTRY & LOCKDOWN

Nearly 50-year-old Jalandhar-based company, Hind Engineering Works, has ventured into the job of making items that are in demand these days. Company owner Narinder Singh Saggoo, who is also the president of the Focal Point Extension Association, shares with Deepkamal Kaur how he has been tackling the crisis induced by the Covid-led lockdown. Excerpts:

How is your business doing amid the lockdown?

We are into the manufacturing of cast iron hand pump parts, pipe fittings, luxury bathroom fittings and submersible pumps. The demand for these has come down to just 50 per cent of the before-Covid level. We are working at the 30 per cent to 40 per cent level of our capacity as many of our labourers have left for Uttar Pradesh and Bihar.

We have been getting calls from our migrant workers, asking us to re-employ them. Now as the trains have started, and also because they couldn’t find any work there, they have started to come back. We have told them that they would have to follow the government guidelines, including quarantine norms, before starting to work on our premises. We have a building with 10 rooms to house the returning labourers during their quarantine period. We also give them small jobs such as packaging during this time. We make sure that products handled by them are left untouched for 48 hours to prevent the spread of coronavirus.

Are you getting the required raw material for your business operations?

Yes, we are getting the required raw material but prices have increased. All iron and steel items used in fittings have become dearer by 10 per cent to 15 per cent. The iron prices are fluctuating a lot. This is happening as some people had stocked up on iron parts during the lockdown and are now selling these. A rise in cost of raw material leads to an increase in prices of our items too. Our exports often get stuck up if we don’t take into account the competitive prices of products from other countries, including China.

What are your demands from the government?

We want the government to exempt us from fixed charges for power consumption. Since our consumption has almost halved, the government should instruct PSPCL to charge as per the power usage. This will help us reduce our overhead costs and lighten our burden to a large extent. Of late, our burden has also remained high as our labourers, who were into manufacturing of items, had left but our supervisors, foremen and watchmen stayed on duty. While we were not manufacturing, we had to pay wages to the higher-rung people. Bank loans were another overhead.

Have you brought a change in production line or re-strategised your business in any way?

Yes. Our company has been quite innovative. While I am myself quite experimental, my sons often tend to modify products, keeping in mind market needs. Initially, we manufactured many foot sanitiser stands and sold them in the market. Their demand fell after a boom in the beginning. Another product that we launched was automatic sanitiser dispenser that works on sensor and sprays it in form of droplets or mist on hands. The sanitiser gets used rationally and more effectively on hands. This dispenser is in high demand and private companies, shops, offices, hotels, restaurants, schools and even mohalla societies have been buying it. In a week or so, we may come up with UV light devices for quick sanitising of mobiles, purses, belts and other non-washable items that we carry outside daily.

What message you want to give to other manufacturers at this point of time?

At least for this year, all manufacturers must not worry about profits. The aim should be to survive. One must not give up and try his best to sustain in the market and continue to maintain the name of their brand.