West Asia conflict to hit nearly half of Pune industries: MCCIA survey

Supply chains under pressure

Pune is home to a large base of auto-component, engineering, electronics, and polymer-dependent industries, sectors that are particularly vulnerable to raw material price volatility and freight cost spikes.

The immediate concern for the city’s manufacturers is the disruption to Gulf shipping lanes. A significant portion of Pune’s imports and exports passes through Dubai and other Gulf ports. Any sustained interruption to maritime traffic in the region would delay the movement of fuel and industrial goods.

Polymer prices, a critical input for plastic and packaging industries, are expected to rise by up to 10 per cent within two to three days, according to businesses surveyed. Companies with existing orders say they may no longer be able to fulfil them at the previously agreed rates.

“After the current stock of raw materials runs out, it will be difficult for manufacturing companies to honour previous orders at the old rate,” businesses said in the survey.

Several industries also flagged that the full impact of the war may not yet be visible. “The effects will be felt gradually. Since maritime transport has been affected in some areas, the impact on freight will become clearer in the coming days,” surveyed companies noted.

‘Temporary uncertainty’

MCCIA Director General Prashant Girbane said the chamber had held discussions with several Pune entrepreneurs and acknowledged that anxiety was building in certain sectors. “Not all industries are affected, but some are definitely feeling the pressure. The US-Israel-Iran conflict has threatened the global supply of crude oil. Petrochemical raw materials, including those used to make polymers and plastics, are becoming more expensive. Since a large share of our exports travel through the Gulf route and rely on ports like Dubai, some temporary uncertainty is natural,” Girbane said.

He, however, expressed hope that the situation would stabilise. “We hope that this conflict ends soon and things return to normal,” Girbane added. Any prolonged disruption to Gulf trade routes could also raise shipping insurance premiums, adding another layer of cost for exporters. For now, companies are monitoring the situation closely, but the MCCIA survey suggests the window for pre-emptive action is narrow.