Ludhiana loosing its Industrial Sheen
Industrial belts of the country are on a decline due to the dumping of cheaper imports in the domestic market. The suicidal process of de-industrialisation has been set into motion, leading to large-scale unemployment, displacement and destitution. Entrepreneurs, manufacturers, technicians, crafts persons, workers, etc., in large numbers are being thrown out of jobs, as production units of almost all industrial complexes or towns are facing extinction or dwindling fast. De-industrialisation is endemically spreading through the length and breadth of the country. Industrial areas are witnessing one-by-one closure of manufacturing units.
Indigenous production units scattered throughout the country are loosing out huge domestic market share to foreign goods, as there are no quantitative restrictions on their imports. They are at a major disadvantage on the exports front also, as compared to their better placed counterparts based in competitor countries.
The bicycle industry of Ludhiana is passing through critical times. If it is ruined, the entire bicycle industry of the country will face extinction.
The Chinese bicycle industry has been successful in cornering 25 per cent share in the fancy bicycle market of the country. Indian bicycles are about 30 per cent costlier than the Chinese one, as prices of raw materials or inputs such as MS round, CRCA sheet and tube hover around Rs. 29,000; Rs. 36,000; and Rs. 43,000 per tonne respectively in our country while in China they stand at Rs. 14,400; Rs. 21,000 and Rs. 25,000 per tonne respectively. K. K. Seth, senior vice-president of the Ludhiana based Indian Bicycles’ Manufacturers’ Association (IBMA) and owner of the Neelam Cycles said, “Last year (in 2006), we exported bicycles worth Rs. 760 crore and this year it will come down to Rs. 650 crore because of increasing presence of Chinese bicycles in export market.”
The Ludhiana bicycle industry is more than 60 years old. It exports bicycles and cycle parts across the globe. Thanks to the Ludhiana bicycle industry, India is the second largest bicycle manufacturer in the world, next only to China. There are almost 3000 industrial units in Ludhiana, that manufacture either cycle parts or bicycles.
Cycle parts in China are mostly produced on automated machines. They are dirt cheap as compared to cycle parts produced in our country. The Ludhiana’s Dhandhari dry port receives each month at least 100 containers of cycle parts made in China. Ludhiana is likely to lose out upto 50 per cent domestic market share and Rs. 100 crore worth exports to Chinese bicycles and cycle parts this year. More than 10 large industrial houses such as Hero Groups, Eastman, Safari Cycles, Sadem Cycles and many more have recently set up their offices in China to source cheap cycle components for exports to developing countries’ market.
Sewing Machine Industries
Like the bicycle industry, Ludhiana has been home to the sewing machine industry for more than 100 years. It has more than 75 per cent of the total sewing machine units of the country. It is the leading and the largest producer of sewing machines units in the country. It is losing ground for Chinese sewing machines and spare parts which are 40 to 60 per cent cheaper than their Indian-made counterparts. Imported machines like Jaguar, Julsi, Pegasus, etc., find place in most big garment manufacturing units that once used sewing machines made in Ludhiana. The embroidery machines segment has also lost almost 60 per cent of the business to China-made machines. According to Varinder Rakheja, president, Sewing Machine Dealers’ and Assemblers’ Association, “China’s share in the Indian market is increasing rapidly as 9.5 per cent of the needles used in the machines are being imported from China and the same is the case with other spares such as needle plate, bobbins and bobbin case, etc. The main reason for this is the price difference.”
There is a sharp difference between the input prices in the two countries. The cost of sheet metal (an important raw material used in sewing machines) has increased from Rs. 26,000 to Rs. 36,000 a tonne, while Nickel witnessed a price rise of 40 per cent during the last six months. The price is reflected in the cost of a needle as wall. A Japanese needle costs Rs. 2.50, the Indian-made Rs. 1.50 and the Chinese is available at Paise 25 only.
Some 120 years ago, a few dynamic and innovative entrepreneurs of Ludhiana started manufacturing different types of sewing machines for the region spreading up to Lahore. Now a days, this glorious industry of Ludhiana is on a decline due to the Taiwanese, Japanese and Chinese machines.
Chinese manufacturers are resorting to all sorts of unfair and foul trade practices with a view to uproot our sewing machine industry. “I was shocked to see my brand name V. Ratna and Company on Chinese machines during my trip to China as a part of a 30 member delegation”, said a Ludhiana based sewing machines manufacturer.
The above write up is entirely based on the reports entitled Indian bicycle industry to lose huge market shares to China and Sewing machines unable to beat Chinese prices written by Puneet Pal Singh Gill. These reports appeared on July 30 and August 2, 2007 in the Lucknow edition of Business Standard. The contents therein have been freely used in this article.
{Presentation : Dr. Krishna Swaroop Anandi}
कोई टिप्पणी नहीं:
एक टिप्पणी भेजें