China locks out Aligarh units

The lock industry of Aligarh is stagnating, primarily due to the lack of investment and growing competition from Chinese locks.

The annual turnover of the lock industry in Aligarh has declined from Rs 450 crore in 2003 to Rs 350 crore, according to the All India Lock Manufacturers Association.

However, the number of registered small scale lock manufacturing units has gone up from about 1000 in 2003 to 1200, according to the Aligarh District Industries Centre. In addition, Aligarh has about 2,500 lock manufacturing artisan units. These units employ about 30,000 people.

"Chinese locks are almost 40 per cent cheaper compared to the Indian ones. The Chinese government gives incentive as well as export subsidy to their companies," said Ramesh Arora, the secretary of All India Lock Manufactures Association.

Post globalisation, the challenges faced by the Indian lock industry have increased. The government policy is negative towards the small scale industries, said Rajan Bajaj, the vice president of the association and the owner of Bajaj locks.

"Even small lock makers have to buy inputs like gas and electricity at commercial rates. The price of raw materials like brass, zinc and iron has been fluctuating and putting pressure on margins," says Bajaj.

United Nations Industrial Development Organisation (UNIDO) along with the ministry of small scale industries, Government of India, had agreed to implement the National Programme for the Development of the Indian Lock Industry in 2001, with a budget of Rs 5.52 crore spread over two years.

The programme noted that the environment for doing business in India does not match its international counterparts in factors like distribution channels, market intelligence for product design, cost of money, availability of skilled man power, mechanisation of the processes, introduction of electronics and information technology in product design. "But after five years, the programme is still on paper," said Arora.

The programme had adopted a two pronged approach of technological upgradation and market development for the development of the lock industry.