Coimbatore : Seeking redressal of their problems like increased raw material prices and refund of GST, nearly 400 foundries in the area downed shutters for two days starting today.
According to sources in the Small and Medium Foundries Association, price of raw materials prices like pig iron and chemicals used in castings, had gone up by 30 to 90 per cent in the last four months.
The closure of the foundries would result in production loss of nearly Rs 100 crore per day and affect nearly 8 lakh employees, both direct and indirect.
The shutting down the business for two days, would have cascading effect on other industries like motor and pumps, wet grinders and engineering component manufacturing plants, they said.
Though the foundry industry had requested the State and Central governments to look into the issue, nothing had been done, they said. The price of raw material was increasing for the last two months by 20 per cent, due to closure of quarries in Goa, the sources said, adding that GST of 18 per cent also taken a toll on the turnover. Many industries and trade unions had extended support to the agitation.