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Export aid, technology seen as key to sports goods industry's growth

Gautam Sathe in Bombay

As cricket continues to dominate the Indian sports-lovers' collective consciousness, the sports goods industry breathes easier. In 1997-98, the industry recorded exports worth Rs 2.03 billion. There are signs things will improve, if the industry fine-tunes itself to the needs of the New Millennium.

Introduced by the British, the manufacture of sports equipment became more of a necessity because of the high costs involved in imports. The production was concentrated in Jullandhar and Meerut in the early 19th century.

Nearly 80 per cent of the domestic production is still done here by some 3,000-odd manufacturing units. The centres were selected by the British due to their proximity to the cantonment areas and continue till date because of the infrastructure.

The game of cricket, which falls in the category of traditional sports goods industry comprising football, hockey and tennis, alone contributes 70 per cent or Rs 1.7 billion to the domestic market.

Although India is a major manufacturer and exporter of only a few items, it has some presence in the world market with a share of 13 per cent of the export market. However, if all the sports equipment market is taken into consideration, India's share will work out to less than one per cent.

Presently, with a lot of foreign countries investing in India, there has been a perceptible shift in the focus of sports goods industry from the traditional and low-value items to the modern technology items like golf, skiing and winter sports equipment.

India tops in export of inflatable balls which account for 50.6 per cent of the total exports, followed by cricket bats, hockey sticks and protective equipment for cricket and hockey. The major export destinations are the USA, the UK, Australia, Germany and France.

The Indian sports manufacturing industry is bound by the traditional mindset. To grow and become more healthy and competitive, it will have to tune itself to the changing market tastes and preferences of world markets, and hold its own against major players including the USA, the UK and Japan, industry leaders said.

A lack of sports culture in the country is also hindering this industry with major consumers still being educational institutions and government departments like Services and Indian Railways.

The domestic market is also suffering due to the fact that majority of the population stays in rural areas that lack in sports infrastructure and events. This is attributed to the fact that 'sports' is not yet looked at as a career, though this mindset is slowly changing.

Another impediment is the dearth of raw material. The government ban on movement of willow and cane across state borders does not help matters. Lack of proper transport facilities also creates problems: exporters are unable to meet deadlines resulting in the rejection of their consignments.

Another problem the industry faces is the setback to traditional items as the demand for modern technology items like golfing, skiing, winter sports, water sports, tennis, skating equipment is rising. A continuous investment in R&D is required for the small producer in order to survive and keep pace with the changing scenario.

The industry which is located in specific areas, will need to be set up in places where there is easy accessibility to raw material and proper transport facility. Entrepreneurs should also be encouraged to set up units in newer places using latest technology, market veterans said.

The government can help in achieving this objective by setting up export promotion zones away from traditional centres while giving them all the infrastructural facilities. The government should also give incentives to export promotion groups by holding international exhibitions in local venues to expose the wares and products of local manufacturers to foreign buyers, the industry's leading players said.

The Indian government can also promote Indian goods through their missions in Europe and the USA which are the main markets in the world, they added.

The Indian equipment is largely handmade by skilled workers. The stitching of the balls is done by hand which lasts longer than the machine-stitched ones of the advanced nations.

The industry in Jullandhar and Meerut thrives on child labour. Children often work in inhuman conditions and with very poor wages, this will have to be addressed urgently and quickly as human rights groups are getting active in this field.

Cricket bats also pose a problem as they are made from 'willow' --a special type of wood mostly found in England. However, in India, the bats are made from wood taken from a particular type of tree in Kashmir, but it does not compare well with willow.

Another problem the sports goods manufacturers face is that most of the domestic consumers belong to the middle class and the high cost of items which have risen by 200 per cent, is beyond their reach.

With the exposure of television, people are getting attracted to different types of games for which Indian sports industry has to still gear up in terms of products but the unavailablity is already affecting sales, felt a cross-section of shop-keepers dealing in sports wares.

The industry has grown substantially in the last few years, but it would grow further if it uses latest technology and cuts costs and wastages.

UNI

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