Absence of bearings manufacturing units in this industrial town is not complementing the robust local auto sector

FARIDABAD: Everything moves on bearings, that's the axiom that holds true for the automobile industry. But Faridabad, known for its auto and auto ancillary industries, has a somewhat deformed bearings industry. There are plenty of intermediaries in this business in Faridabad, but only a few who manufacture rollers or balls. Sher Singh, who runs his own manufacturing unit Lamba Steel Ball in Faridabad, underlines the importance of the industry, "Auto industry cannot exist without bearings. For instance, 60-70 bearings are needed to make a car and 10-15 goes in a bike." Lalit Pahwa, the CEO of agriculture equipment maker Escorts Group (auto) said, "The maximum output (bearing industry) goes to the auto sector, hence Faridabad being an auto hub cannot do without an equally flourishing bearings manufacturing industry."

According to Rajiv Chawala, president of Faridabad Small Industries Association (FSIA), pointed out that in the last five-six years have seen around Rs 30 crore of investment in the Faridabad automotive industry. "It somewhere brought about around 25,000 automobiles, tractors, earth-moving equipment, cranes and other heavy machinery to establish a strong foothold in the region," he said.

Piyush Tripathi, an analyst of manufacturing industries in NCR said, "Bearing industry is sprawling across the country. But the ninth largest industrial town in India still doesn't have a robust bearing industry." According to him with more plants that manufacture bearings, the production cost would decline. He pointed out, "these players at present incur comparatively higher costs as they have to import from other states and countries."

INDUSTRIAL PROBLEMS

"The growing number of mechanical and ancillary industries boosted 'ancillarisation' in this town, which is volume-intensive and capital-intensive in nature," said Anil Chowdhary, general manager of district industries, Faridabad. However, Faridabad's bearing industry (an important part for making machines, has not been able witness concomitant growth. According to Mr Chawala of FSIA, "Bigger players like JCB, ACE, TATA, Star wire, Yamaha, Bharat Gears, Clutch Auto, etc have helped Faridabad to surpass the neighbouring towns of Noida, Okhla and Gurgaon in the automotive sector, so it is anywhere lacking in capital and volume intensive companies."

Most of the bearings are imported from the states of Gujarat and Maharashtra. "I think the main reason - limiting bearing industry's growth - is an inadequate supply chain," according to Ashok Kakkar, a citybased roller bearing manufacturer. "In Faridabad, there are small players who are basically into trading of bearings.

They prefer buying it ready made from bigger brands like SKF, NBC, RB International, etc."

Suresh Aggrawal, president of the Manufacturer Association, Faridabad, opined that sourcing of bearings from outside is the main cause for limiting the segment's growth. "Most of the parts are imported from Rajkot and Surendranagar in Gujarat. But of course we have large numbers of traders such as Maa Jyotirmai Enterprises, Amco Engineers, Ammsons Bearing etc., who provide spontaneous service," he said.

ONE AGAINST MANY

Mr Sher Singh who has been manufacturing it since 1987, believes that the bearing industry is healthy in Faridabad. This can be seen as an isolated situation rather than being the macro state of affairs.

He pointed out two problems facing the local industry. "Duplicity is rampant in Faridabad. Imported cheap Chinese bearings are being dressed up as products made locally and bearings made by Indian brands like NBC are quite expensive."

"A key to run a bearing unit is availability of skilled labourers, especially for running the forging, ball lapping and ball washing machines," said Sripath Yadav, an employee with a bearings manufacturer.

Possible returns on investments from a bearing manufacturing plant is good as "It depends on the sale which can go up to Rs 1 crore," said Mr Singh. "I am associated with, electricity equipment maker, BHEL and manufactures turbine components for them. Production varies every month but it remains satisfactory."

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