“Can’t increase selling price, profits under pressure” Prakash, whose 29-year-old firm operates in seven sectors, including aerospace, engineering and electronics, and has Rs 38 crore in annual revenues, got into new business opportunities such as making trolleys for ventilators and animal ear tags during the pandemic, both for the central government. While he has been able to triple his revenues from the new ventures—his firm made 9,200 trolleys within two to three months of getting orders, and supplied 10 million animal ear tags, with orders for another 10 million—input costs have eaten up his profits.
The cost of structural steel, a key raw material, has doubled in the past year, from Rs 45 per kg to Rs 90, while plastic prices have risen from Rs 290 to Rs 550 per…