 "Brexit: Meerut sports gear exporters want United EU")
With prospects of Brexit getting clearer as days advance, sports goods manufacturers and exporters in Meerut are keeping their fingers crossed.
Brexit would mean realignment of business interests in the European Union (EU) after the United Kingdom (UK) formally withdraws from the EU Bloc. It would require Meerut-based businesses to open separate channels of communication for importers headquartered in EU countries other than the UK.
Currently, the Meerut-based manufacturers and exporters route most of their consignment and paper work through the UK, which had been an EU member until a recent public vote narrowly supported leaving the Bloc.
He, however, said the bulk of buyers and importers, 40-50 percent, were still based in the UK, although the companies had clients in other countries of the EU as well, including Germany, Hungary etc.
He added the domestic industries were hoping that Brexit does not eventually happen, if there was another public vote on the subject. “Even if Brexit happens, it would take 2-3 years to materialise and by that time, we would have taken necessary steps to safeguard our business interests and move on with times.”
Meerut sports goods manufacturing industry is estimated at Rs 1,600 crore, including Rs 400 crore worth of exports. It is a leading sports goods hub with about 1,000 big and small units manufacturing cricket and athletics gear, table tennis tables, health and gymnasium equipment, football etc.
The hub exports to all Cricket playing nations, besides Germany, France, Africa and West Asia.
Meanwhile, it also imports input materials from England, Singapore, China, Japan, and Australia. Imported items account for about 50 per cent of the finished product. Primary imported items used as raw material or packaging include, paint, thinner, varnish and other petroleum-based products.
In fact, the wood (called English willow) used for manufacturing cricket bat used in domestic and international matches is imported from England.
“During 2016-17, we have projected the Meerut hub to clock turnover of over Rs 1,800 crore,” he said.
Brexit would mean realignment of business interests in the European Union (EU) after the United Kingdom (UK) formally withdraws from the EU Bloc. It would require Meerut-based businesses to open separate channels of communication for importers headquartered in EU countries other than the UK.
Currently, the Meerut-based manufacturers and exporters route most of their consignment and paper work through the UK, which had been an EU member until a recent public vote narrowly supported leaving the Bloc.
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“Brexit is a loss proposition for us as we have been serving the EU market through the UK. Now, we would need to complete trade formalities separately for the UK and the EU markets,” All India Sports Goods Manufacturers Federation president Punit Mohan Sharma told Business Standard over telephone. He runs Rama Rubber Industries in Meerut.
He, however, said the bulk of buyers and importers, 40-50 percent, were still based in the UK, although the companies had clients in other countries of the EU as well, including Germany, Hungary etc.
He added the domestic industries were hoping that Brexit does not eventually happen, if there was another public vote on the subject. “Even if Brexit happens, it would take 2-3 years to materialise and by that time, we would have taken necessary steps to safeguard our business interests and move on with times.”
Meerut sports goods manufacturing industry is estimated at Rs 1,600 crore, including Rs 400 crore worth of exports. It is a leading sports goods hub with about 1,000 big and small units manufacturing cricket and athletics gear, table tennis tables, health and gymnasium equipment, football etc.
The hub exports to all Cricket playing nations, besides Germany, France, Africa and West Asia.
Meanwhile, it also imports input materials from England, Singapore, China, Japan, and Australia. Imported items account for about 50 per cent of the finished product. Primary imported items used as raw material or packaging include, paint, thinner, varnish and other petroleum-based products.
In fact, the wood (called English willow) used for manufacturing cricket bat used in domestic and international matches is imported from England.
“During 2016-17, we have projected the Meerut hub to clock turnover of over Rs 1,800 crore,” he said.