Sewing machines unable to beat Chinese prices

Today, an Indian-made needle costs Rs 1.50 while the Chinese one is available at 25 paise.

Ludhiana has been home to the sewing machine industry for over a hundred years. It was 120 years ago that the entrepreneurs of the city started manufacturing different types of sewing machines for the region spreading up to Lahore. Several people turned millionaires over the years. Today, however the industry is on a decline.

Ludhiana's sewing machine industry constitutes nearly 75 per cent of total sewing machine units in the country and also claims to be the leading producer of sewing machines in Asia. The industry is losing ground to Chinese-made cheap sewing machines and spare parts.

With the availability of small, cheap and trendy Chinese sewing machines, there are not many takers for the heavier older prototypes.

Interestingly, some such machines are still being exported to third-world countries.

The demand for the Chinese machines and spare parts, which are 40 per cent to 60 per cent cheaper than the Indian-made counterparts, is increasing sharply with every passing day, causing losses to the Indian sewing machine industry.

With rising labour and input costs, the industry bigwigs feel that the sales in the industry would further dwindle, as they would be put at even more of a disadvantage in terms of production and sales costs as compared to the Taiwanese, Japan and Chinese machines.

Most big garment manufacturing units that once used sewing machines made in Ludhiana now prefer imported machines like Jaguar, Juki, Pegasus, etc that provide a much better finish, higher quality and better production.

The market in the embroidery machines segment is also losing its lustre as almost 60 per cent of the business has already been captured by China-made machines leading to a fall of 5 per cent to 10 per cent in the exports of the segment.

The situation has been worsened by instability in the rising prices of the raw material, unscheduled power-cuts and the government's apathy.

The cost of sheet metal, an important raw material used in sewing, has increased from Rs 26,000 to Rs 36,000 a tonne, while Nickel witnessed a 40 per cent increase in the last six months. The price is reflected in the costs of needle as well. A Japanese needle costs Rs 2.50, the Indian-made Rs 1.50 and the Chinese one is available at 25 paise.

Speaking to Business Standard, Varinder Rakheja, president, Sewing Machine Dealers and Assemblers Association said that the sewing machines and its parts produced by China, though poor in quality have a better finishing and their lower price gives them an edge over the Indian-made counterparts.

"China's share in the Indian market is increasing rapidly as 95 per cent of needles used in the machines are being imported from China and the same is the case with other spares such as needle plate bobbins and bobbin case etc. The main reason for this is the price difference,'' he said.

Inderjit Singh of Darbar Sales India says Chinese machines are more in demand because the Indian sewing machine models are many years old and have not kept pace with modernisation.

Chinese manufacturers are adopting methods fair and foul. ''I was shocked to see my brand name V Ratna and Company on Chinese machines during my trip to China as a part of a 30-member delegation,'' says a Ludhiana-based sewing machines manufacturer.