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R. B. Industries, Cherpulassery |
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Gets a boost from Shalom Micro Finance |
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| R.B Industries, promoted by an enterprising and ambitious person, K.P. Ramakrishnan, specializes in the manufacture of agricultural implements. He is relatively a new entrant to the field of metal equipments production. His small manufacturing unit produces different varieties of iron tools used for agricultural purposes--axe, axles, forge hammers, flanges, stubs, iron rods, knives for domestic as well as agricultural work, swords and other equipments.
Although there are a number of producers in this segment, Ramakrishnan, who owns the unit and runs the day-to-day operations, quickly established himself as a manufacturer of quality products.
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Technical expertise
His business success can be attributed to the fact that he spent his whole life in the field of metal production. In fact, he mastered the art of making agricultural tools as he worked 25 years in Lakshmi Implements, Shornur as a power hammer operator. He is deeply entrenched into the production methods, different stages of production, sourcing raw materials, and exploring the market for finished products.
With handsome experience, Ramakrishnan had quit the job long back and started the activity in a rented premise. But soon he realized that it was not feasible to operate from a rented place where the cost of production was enormous. Ultimately, he worked out a plan to shift his manufacturing center to his own premises at Mangalam Kunnu, near Cherpulassery and set up the unit there in December 2006.
It was the beginning of a new journey in his career. He was looking around for further investment to stabilize his business. Fortunately, his wife Sumathy was a member of Shalom Micro Finance SHG and she approached the Group, CPY–59 for financial help. Officials of Shalom Micro Finance inspected the work site and came to the conclusion that such small-scale income generation activities should be supported and encouraged.
Helping the needy
Since the fundamental principle of Shalom Micro Finance is to lend a helping hand to the needy poor to set up their own activities, Shalom sanctioned a loan of Rs.5000 for his immediate requirements. According to Ramakrishnan, “ even though a small amount , Shalom’s financial aid acted as a catalyst to stabilise the unit, and look into the future with renewed confidence.”
The raw material for the production is used iron which is available in Shornur and Palakkad. The raw material will be melted in iron pot or furnace by the process of burning coal. The liquid metal will pour into the power hammer to make flat iron. After this process, it will go to the forging machine where the flat solid iron bars will be shaped up and converted into different tools.
He had the vision to install a hand forging machine in the unit because it is useful to get the finished products desired bends and shapes. Other machineries used for the production are grinder, driller and blower.
The unit has employed seven people for different stages of operations – welders, hand forging and power forging operators, fitters, furnace operators, and helpers. His son Manikandan assists him to run the show.
Marketing efforts
R.B. Industries has captured markets in Kozhikode and Nilambur districts and the products find its way to the end-users through the hardware outlets. Depending on the weight of the finished products, the market price will be decided.
Quality is another aspect where he kept a strict control. In order to maintain the quality of the products, he is keenly monitoring different stages of production and the result is really amazing. The company’s supply is always falling short of huge demand which exists in the market.
Meanwhile, raw material cost has gone up in the market. The unit will absorb nearly 4 tonnes of iron in a month and one kg will cost between Rs.20 and 25. The rising price of input is adversely affecting the profitability of the business. According to Ramakrishnan, “ We are planning to hike the prices of finished products to offset the growing trend of raw material prices.”
Having established the manufacturing unit, he is now planning to take some remedial measures by installing a gas cutting machine, and purchasing a vehicle to supply finished products in the market. “Our strategy is to build up on the competitive strength and business opportunity to become leading manufacturer of agricultural implements,” Ramakrishnan confidently observed.
He admitted the fact that the industry is in a nascent stage and it is not an organized sector. The scenario does not seem to be too rosy because even though there is a high demand for the products in the sector, large capital expenditure requirements would make sure that the growth remains slow.
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