SMEs in Ludhiana adopting Chinese technology

Sewing machine-manufacturing units will outsource jobs

Small and medium units (SMEs) are adopting Chinese technology in a major way, motivated to do so during their delegation's visit to China in August last year, mainly to sewing machine-manufacturing units.

As part of the cluster programme, these entrepreneurs have decided to lay emphasis on "industrial models" of manufacturing sewing machines.

As a first step in this direction, SMEs here will produce 30,000 sewing machines of the industrial model (5550) in three years. This product will be launched in eight to 10 months.

The work of assembling these machines will be outsourced to 70 homes in and around "Lakar Bazaar" (in Ludhiana), operating from homes. The cost of this machine will be Rs 5,000, expected to be Rs 500 cheaper than its counterpart imported from South Korea.

"We will be involved only in the manufacturing of sewing machine parts. The assembling will be outsourced. A few of them have worked in the industry for 5 to 6 years, and now they are operating from homes only. This way the entire family gets involved in such projects," said Punjab Sewing Machine Industries Association (Ludhiana) Chairman Dalbir Singh Dhiman.

Sewing machine manufacturers are laying emphasis on the technological upgrade of the foundries.

Citing reasons for laying emphasis on industrial models, Dhiman said, "It came as a surprise that manufacturers in China are producing for industrial purposes, whereas our industry here is importing costlier machines from South Korea. In the first year we will produce 5,000 machines, followed by 10,000 and 15,000 machines in the second and the third year. These machines would benefit the textile industry, since it's of great value in stitching thick clothes like jeans."

The sewing machine industry in Ludhiana employs 25,000 workers, directly and indirectly. It serves the domestic industry mainly. Only 3 per cent of the production is exported. In the last financial year, it manufactured around 1.8 million machines, each costing around Rs 900 on average.