Time has come a full circle at clocktown Morbi. After facing fierce competition from China, the clock industry of Morbi is now facing another challenge decreasing demand for clocks.
With the demand for clocks going down significantly in the last six months, a number of units have cut down production by around 35 per cent. The growing input costs have only added to the woes of manufacturers.
Prices of key inputs like plastic, metal, chemical and packaging material have soared by 25 to 35 per cent. Besides, higher transportation costs too has made things worse for the manufacturers. From over 2 lakh pieces a day just about two years back, the production of clocks have come down by a half.
"Wall clock production in Morbi has gone down. Manufacturers recover only 10 to 15 per cent of the hike in prices of key inputs,” says Shashang Dangi, president, Morbi Clock and Parts Manufacturing Association.
Two years ago Morbi used to produce around 2 lakh clocks daily, which has been curtailed by half, he says. However, manufacturers are hoping that the upcoming festive season may boost sales to some extent.
“Earlier wall clock was considered a gift article. This has changed now. In a way, clocks now compete with cell phones and other gift articles. In coming years this business would be restricted to replacement segment only,” says a leading clock manufacturer.
"Six months ago Morbi used to manufacture 85,000 to 90,000 clocks a day. This has come down to 55,000 to 58,000 clocks per day,” says Jaysukh Patel, managing director, Ajanta Manufacturing Ltd. The wall clock business has been limited to replacement segment only, added Patel.
A leading wall clock manufacturing company recently pulled out of the business. “If situation continues to worsen at this pace, several players may have to shut shop,” says a Morbi-based clock manufacturer.