Meerut SMEs find the pitch tough to bat on

MUMBAI: Cricket is a passion in India, but for Meerut’s sports goods makers, the sport means business. The city is an internationally renowned manufacturing base for high quality cricket gear. According to estimates, exports of cricket gear like bats, wickets, etc account for about three-fourths of the city’s sports goods turnover.

Meerut in Uttar Pradesh, like Jalandhar in Punjab, is a main centre for manufacture and exports of sports goods in India. Jalandhar clocks a business turnover of more than Rs 300 crore, while the sports industry in Meerut rings in a turnover of close to Rs 100 crore. Jalandhar is known for exports of footballs and sports gear used in games like hockey. Meerut is known for export of high quality cricket gear.

Jalandhar today is a bigger success story than Meerut as it was able to attract skilled workforce from Pakistan. The Jalandhar sports industry has grown leaps and bounds compared to the Meerut sports industry. “Prior to Independence, Sialkot (now in Pakistan) was the sports manufacturers’ hub, being home to many skilled workers.

After partition, these workers moved to Meerut, but were not given any special incentives to work here. Meanwhile, the Punjab government announced several initiatives for the workers, with the result that bulk of the skilled workforce from Meerut migrated to Punjab,” says Rakesh Mahajan, general secretary, All India Sports Goods Manufacturers Federation, Meerut.

As per statistics, there are around 2,000 sports manufacturing units in Meerut city and the villages around it. Of these, 1,000 manufacturers are registered small scale industries (SSI). Of the rest, 400 units are large units, including small and medium enterprises (SMEs) like SS Sports, SG Sports and BD Mahajan. Among the larger units, the city has 35 sports gear exporters.

The local industry feels that the government needs to actively support the sports goods industry by providing incentives and the much needed infrastructural support.

Two years ago, the Sports Association had decided to acquire 300 acres of land in a village near Meerut to build a special economic zone (SEZ). “The idea was to invite more companies to come here and start manufacturing sports gear,” said Mr Mahajan. But the Centre struck the project down as an SEZ cannot be built on fertile land since it can affect farmers.

The state government has passed a Mahayojna for the city, but it will take some time for the benefits to trickle down to the manufacturers. “Sadly, I don’t see anybody with a vision for sports. There are no playgrounds, trained teachers and infrastructure to encourage sports among the youth over here,” says another sports goods maker.

The sports stadium, a known landmark in Meerut, too, is used for purposes other than sports. Further more, the flow of raw materials from Andaman has stopped after the Supreme Court order banning use of bendsaw, a wood cutting machine, to give shape to bats etc.

Reports of the government planning to impose a 16% excise duty on sports equipment from next year, is also feared by the small and medium enterprises who feel that it will add to the manufacturing costs. “It is becoming a challenge for us to survive in this industry,” says an SME sports goods maker.

However, there is hope for the SME sports good manufactures of Meerut. With 13 countries playing in the World Cup and another 56 countries like Malaysia, Hong Kong, Germany and Holland showing interest in this sport, there is a huge potential and business opportunity for Meerut’s sports goods makers that they plan to capitalise on. Howzzat!