Falling raw material prices has brought a glimmer of hope for the otherwise ailing sewing machine industry in Ludhiana. The industry was in shambles last year when steel prices hit the roof. But now, with the raw material prices coming down, sewing machine dealers see better business prospects.
The Ludhiana sewing machine industry caters to 85 percent of the domestic market.
Speaking to Business Standard, Anil Kapoor, president of Sewing Machine Dealers Association, Ludhiana, said with easing raw material prices, the business has increased by around 50 per cent as compared with last year in terms of volume. Cast iron, which is used as a raw material in sewing machines, last year peaked to Rs 42,000 per tonne but now the prices have almost halved. Similarly, pig iron prices have declined nearly 50 per cent
Buoyed by the decrease in prices of pig iron, dealers anticipate a 15-25 per cent increase in business in the financial year 2009-10 over the previous year.
Kapoor said the Ludhiana sewing machine industry was expecting a Rs 350 crore business this year as compared with Rs 300 crore in the financial year 2008-09.
