There are some 120 pressure cooker manufacturing units all over India operating in the small and medium sector. Delhi, itself has as many as 75 small units making pressure cookers. "Quality-wise, we are second to none. The price line of our products is also attractive for all sections of consumers," says Vinod Jain of Oswal Appliances.

Even though small enterprises have been successfully competing with the big brands, like Hawkins and Prestige, entrepreneurs complain that a faulty taxation policy is eating into their business and scuttling the growth of the industry. "The major impediment affecting the growth of this industry is the level of excise duty imposed on it. During the period 1983 to 1994, pressure cookers were exempted from excise duty. However, the duty wasre-introduced in 1994 which badly affected the industry," says Manoj Kapoor of Kapoor Industries.

Today, excise is levied on the basis of annual turnover of the unit. Units having a turnover up to Rs 50 lakh are exempted. For a turnover of Rs 50 to 75 lakh excise is 5 per cent ad valorem; from Rs 75 lakh to Rs 1-crore turnover, excise is 8 per cent.

"The current methodology adopted by the government for calculating excise on this sector has made it a highly complex and cumbersome exercise for the units," says Devi Chand, a cooker manufacturer.

Excise is based on the diameter and capacity of the different sizes of cookers manufactured. "A manufacturer normally makes a number of sizes ranging from 2 to 25 litres. The production mix is dependent on the market demand and it is, therefore, difficult to have a standard calculation." Jain points out that apart from excise duty, sales tax -- which varies from state to state-is also a major problem. "Though in Delhi sales tax on the pressure cookers is only 2per cent, it is as high as 14 per cent in some southern states."

Jain says that besides all this, the manufacturers also have to bear the burden of excise on aluminum, the basic material used for manufacturing pressure cookers. "The excise duty on aluminum is 15 per cent which is too high for small entrepreneurs," says Jain. Kapoor points out that because of the government's excise policy many units are functioning underground. "This has resulted in a situation where units which are registered have to face unfair competition leading to a loss of business," he complains.

Despite all these, small-scale pressure cooker units are giving big brands a run for their money. "As far as the upper classes are concerned, they are not bothered about our products. But when it comes to the upper-middle, middle and lower-middle classes, it is the big brands who are having a tough time competing with us," claims Jain.

"Technologically, the pressure cooker industry is self reliant. The raw material demand is also metindigenously," asserts Rajesh K Malhotra, chairman, Northern India Pressure Cooker Manufacturers Association.

According to Jain, entrepreneurs are gradually realising that unless they adhere to certain quality and safety norms they cannot survive. "During the last two to three years, five to six units have been able to procure the ISI mark. Since this product is being used in households, achieving highest safety standards is of prime importance."

Malhotra points out that the association has been encouraging entrepreneurs to improve the quality of their products.

"Of course, we cannot fight the big companies as they are technologically better off and have deep pockets. The least we can do is keep on improving the quality of our products so that we are able to build a loyal customer base," stress Malhotra.

Though Malhotra, too, is critical of the government's excise policy, he appreciates that the government has recognised the role played by the industry in saving precious fuel and has accorded asubsidy of 25-50 per cent to every state under the Integrated Rural Energy Programme (IREP) for encouraging the use of pressure cookers. "This certainly has helped us to expand our business," says Malhotra.

Jain points out that an important factor which has helped the business to expand is the popularity of pressure cooker as a fuel saving cooking appliance. "In the rural areas, where pressure cooker has been late to gain acceptance, our product is popular because it is cheap," adds Kapoor.