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Ludhiana Sewing Machine Industry
Maruti, Honda, Suzuki, Videocon or whatever - you can get a sewing machine with any name in Ludhiana, probably the largest centre for manufacturing sewing machines in the country. It's quite a different thing that these companies have nothing to do with making sewing machines.
Ludhiana small-scale manufacturers also supply their machines to big brands like Usha and Singer. In the last few years, however, the earlier frenzied activity in this industry has dulled. Scores of tiny units in the old quarters of the town that used to manufacture sewing machine parts have closed down.
The industry is being hit on two fronts. Firstly, the steep hike in the price of iron ore has led to increased production cost, lower sales and lower revenues. Adding to the problem in recent years has been a steep decline in demand for sewing machines due to the flood of readymade clothes. People nowadays prefer to buy cheap readymade clothes coming from Taiwan, Bangladesh and China, or even locally made ones. Sewing machines for household use are on their way out.
The Association estimates that about 25 per cent of Ludhiana's 400 odd small units have closed down in the last few years alone. In fact, around seven to 10 per cent of these units are believed to be closing down each year over the last six years. The main raw materials used in the industry are pig iron, mild steel and cast iron. The cost of all three has more or less doubled in the last two years. Besides, as some manufacturers point out, steel majors like TISCO and Jindal Steel prefer to export their quality produce.
Ludhiana's sewing machine industry spawned an entire network of small and tiny ancillary industries from the late 1950s. They comprise parts manufacturers, assemblers and linked industries such as wooden and cardboard package makers. There are also established brand names like Luxmi and Gemini that buy assembled machines from local assemblers or manufacturers.
Most of the manufacturers of parts operate from the town's small neighbourhoods. The Lakkar Bazaar, for instance, is chock-a-block with scores of tiny units churning out sewing machine parts like links, pressure valves, needle valves and needle bushes. With their residential premises on the upper floors and a couple of obsolete machines running in the workshop downstairs, these manufacturers have been the hardest hit in the new economic environment.
Some small manufacturers have begun relying more and more on the little money they get by selling scrap leftover after cutting out the required parts. Earlier people used to employ 12 people to run their 13 machines. But now, they have sacked half of their staff. Sacking of labour has become routine in the bigger units too.
If business is down for the parts and machine manufacturers, other industries dependent on them are also feeling the pinch. Though the changed environment spells doom for the tiny units, larger manufacturers have seen the writing on the wall and are effecting changes in their setups.The future scope for growth is only in the manufacture of machines for industrial use. The home segment is on its way out. This is why people are planning to step up production of umbrellas and embroidery machines.
Presently, high-end garment manufacturers are importing machines from Europe and Japan. Though enterprises may not be able to compete with the foreign machines, they hopes to find a steady market for his machines too. For others unable to adapt, there are dark days ahead.
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