With export orders flowing in, the Rs 600-crore sports industry of Jalandhar is back on track. The industry suffered a 25-40 per cent reduction in new orders from multinational sports goods brands during August 2008-January this year.
Experts said the situation haf improved by 15-20 per cent and was likely to improve further in the coming months.
Speaking to Business Standard, Sports Goods Manufacturers and Exporters Association chairman Raghunath Rana said, “Our exports had been badly affected during August-January year as orders declined. This was mainly due to the recession and strengthening of rupee against pounds and Australian dollars,” he said.
Exporters suffered losses due to currency fluctuation, as they normally carry out invoicing for export orders in Australian dollar or pound. The rupee appreciated against pound and Australian dollar by 15 to 20 per cent since August last.
Australia, UK and a few European countries constitute nearly 70 per cent of India’s total sports good exports. “We had exceeded the target in September, but due to the setback during the period (August-January), we expect the export to be around Rs 390 crore from Punjab in 2008-09,” Rana said. In 2007-08, the industry exported goods worth Rs 350 crore. Jalandhar accounts for about 90 per cent of the sports good units in the state. The units here manufacture football, cricket bats and balls, hockey sticks, etc.
