Indian sewing machine industry draped in woes

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Ludhiana boasted of being Asia's leading producer of sewing machines . But this success story of SMEs has hit a roadblock. High raw material prices and competition from its Chinese counterparts are driving this industry towards extinction.

 

The sewing machine industry's export is struggling to touch even a Rs 100 crore figure as against Rs 400 crore of exports that it made about a decade back. This Rs 750-crore industry has not only lost its leading position, but is also moving towards its end owing to high raw material prices. Nickel prices alone have soared by 40% in the past six months. Even the clusters, made by several industry players to overcome the problems, have failed.

 

Virender Rakheja , President, Sewing Machines Dealers' Association Ludhiana said, "The biggest problem that we are facing is that the government is not providing us land because of which this cluster programme introduced for this sector is of no use."

 

Today the industry exports only 10% of their industrial output. Their wholesale output is down to nil losing out completely to Chinese products.

 

"Despite providing them with good quality products, our customers are going for the price of products. Since China is providing these parts at a lower price, at least 30% less, exports have decreased," said Jatinder Singh a manufacturer and exporter.

 

With the industry on a decline, not only are new players reluctant to enter the sector, even the families that the businesses belong to are unwilling to continue as the industry's export figures are declining by 20% every year incurring loses of more than Rs 300 crore.