Tribulations for Ludhiana sewing machine industry continue

The sewing industry in Ludhiana, which was already suffering due to stiff competition from Chinese players, is now in deeper trouble as volatility in raw material prices continue to hurt the small-scale units constituting the sector. Industry representatives are now seeking government assistance to resolve the existing issue and enable SME sewing units to improve their dwindling margins.

Price volatility hurting SME sewing units

Ludhiana sewing machine sector, which accounts for nearly 80-90% of the total domestic sewing machine production, is facing serious troubles. Fluctuating raw material prices is costing small-scale units dearly as hike in prices of essential inputs is leading to a rise in their production cost, thereby affecting their bottom lines and sales.

"Volatility in prices of inputs has only added to the woes of the already-suffering SME sewing machine units since most of them are compelled to import components from low-cost component supplier destinations like China to cater to the domestic market," said Tejinder P Singh, proprietor of Bono Industries, a small-sized sewing machine manufacturer in Ludhiana, Punjab.

A large chunk of the industrial sewing machine market is already being catered by Chinese suppliers. Now with Ludhiana sewing machine units also turning to imported sewing machines, China's sewing machine industry is certain to gain an edge in this sector.

"Assemblers of sewing machines are left with no option but to import components from China as sewing machine body and cabinet manufacturers have unnaturally jacked up the prices of their products, making it difficult for SME units to sustain their operations," said J Singh, proprietor of Mankoo Manufacturing Co, a small-sized industrial sewing machine manufacturer in Ludhiana.

Ludhiana Sewing Machine Dealers and Assemblers Association has sought government intervention to ensure that raw material prices are not artificially hiked in order to provide a relief to assemblers and SME manufacturers. Support for major innovation and R&D activities has also been sought for the Ludhiana sewing machine industry.

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David Parks is a well known author and has written articles on Jewellery Manufacturers and B2b Marketplace, suppliers, Manufactures and many other subjects.