Marketing System

Each unit in the  pumps& motor product line has developed its own marketing channel. There are no common marketing channels available for the cluster. Few medium scales are also exporting their products to other countries. These marketing channels had been developed over a period by the respective units. Most of the units are supplying directly to the showrooms. Others are supplying through agents who are selling through dealers. The products are transported through various means such as train, lorries, couriers, buses, etc. to various cities in India. Some agents come to Coimbatore to place orders and take the product on their own. These traders develop a severe price competition among the manufacturers.

1) Manufacturer   Branch   Distributors   Retailer
2) Manufacturer Distributors  Showroom   Retailer
3) Manufacturer   Retailer
4) Manufacturer    Agent  Export

There are manufacturers who manufacture as per the clients specification.

Major chunk of the demand for the castings for the foundry industry is from pump units in Coimbatore and the textile machinery industry. Other customers included the automobile and machine tool industries. The orders are placed directly by the end user, in some cases where critical composition is involved especially in steel and non-ferrous castings, the orders are placed by the consultants providing BDS service to the end user.

The export from Coimbatore is only approx. Rs. 100 Cr. may be due to major competition from Turkey, which has a short shipping time to anywhere in Europe. China may also be a threat in exports, because the cost of its finished product was equal to the cost of the raw material of Indian companies.

In the micro enterprises segment  it is observed during the study that there are 2 classes of micro enterprises, the class 1 enterprise scout for  job orders from medium and small enterprises and offloads to his group of micro enterprises i.e. class 2. These class 2 entrepreneurs do not move out for marketing and depend on class 1.