An association representing over 2,000 Micro, Small, and Medium Enterprises (MSMEs) in the industrial hub of Hosur on Sunday announced a two-day strike on July 13 and 14 demanding that companies to whom they supply accept their new common costing norms and pricing policy.
Hosur Small and Tiny Industries Association (HOSTIA) said its members will also hold a demonstration on July 13 as part of the two-day strike. Over 2,000 MSMEs, a majority of which manufacture automobile components, form the ecosystem for large companies that have set shop in Hosur, 40 km from Bengaluru.
“We feel we don’t get the right price for the work we do. We are already under stress due to losses incurred in the past five years owing to the launch of GST, and the Covid-19 lockdowns. We cannot remain silent anymore and we want to protest peacefully,” K Velmurugan, President, HOSTIA, told DH.
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After several rounds of discussions, HOSTIA came out with a new pricing policy and fresh norms for common costing for all products and job orders executed by them in pressings, welding, CNC turning, CNC milling, tool room, conventional machining, fabrication, and painting with effect from April 1.
“Our request for common costing and price increase has been communicated to our primary customers through email by HOSTIA,” Velmurugan said in a message to association members. He added that in order to implement the common costing norms and price hike demands, the Executive Committee meeting of HOSTIA decided to organise a two-day strike in July.
Velmurugan said the rate card for the products they supply and work they do for big companies are “much lower” than those in cities like Bengaluru. The MSMEs serve as tier-I and tier-II suppliers to several top companies in Hosur.
Hosur is fast emerging as a hub for electric vehicles and electronics with the Tamil Nadu government making efforts to bring companies from the sector to set up their units. Ola, Ather, and Simple Energy are some of the EV firms that have built massive facilities in and around Hosur, while Tata Electronics and Delta Electronics have also invested huge.
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