Introduction about Jalandhar
It is the oldest city in Punjab situated at a distance of about 84 kms southeast of Amritsar on the G.T road going to Calcutta. Jalandhar is India’s foremost producer of sports goods. Its steel and iron re-rolling mills, rubber goods, electric goods, automobile parts, and sewing machine factories and handloom products are also very famous. Today, it is a major rail and road junction and an army cantonment. This city has twelve kots and twelve gates. It is one of the biggest centers of the vernacular press in India, most of the vernacular papers, magazines in Hindi, Punjabi and Urdu are published here. Jalandhar is famous for export of quality sports goods all over the world. It is a town of great antiquity which has become a highly industrialized center of commercial activity.
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Jalandhar is the ‘sports city of India’ as it has not only finest sport industry but also a large number of sportsmen. In fact, 12 of India’s greatest hockey players have come from a single village, Sansarpur, in Jalandhar city. The railway line from Beas to Jalandhar was opened in 1869 and was completed upto Phillour by the next year. The Doab was linked to the rest of the Punjab by the railway bridges, constructed over the Beas in 1869 and over the Sutlej in 1870.
Industry in Jalandhar
A Jalandhar rank second in India in the rate of urbanization and has the highest density of population at 598 persons per square km, as per the 1991 census. The reason for this is growing industrialization. Industrial production of sports goods began on a small scale during the late forties. Over the years, the sports goods industry has grown at an impressive rate and of late Indian sports goods are also exported to different countries.
Most of India’s sports goods are exported to the United Kingdom, The United States of America, Germany, France and Australia. Rough estimates suggest that today Jalandhar has more than one hundred major industries and about 20,000 small-scale industries with a most conservative estimate of an annual turnover of approximately Rs 450 crores the industry is mainly concentrated in Jalandhar and Meerut. The Indian sports goods industry manufactures 318 items. The Indian sports goods industry is a highly labour intensive industry which provides employment to the weaker sections of society and also employs a large number of women. The sports goods industry in India has witnessed a phenomenal growth over the past five decades and now occupies a place of prominence in the Indian economy in view of its massive potential for employment, growth and export. The main industries in Jalandhar are-
Sports Good Industry
Jalandhar has the nucleus of sports goods industry in Punjab and has about 90% of the total sports goods units of the State. The product manufactured relates to all traditional products like foot-ball, cricket bats, hockey and cricket balls, hockey sticks, tennis badminton and squash rackets, balls, soft leather goods, shuttle cocks etc. This industry being labour intensive despite inadequate capital and technology, has reached a stage where it is reckoned as a major cottage industry providing direct employment to about 10000 workers.
Hand Tools Industry
Jalandhar is known for the manufacturing of Hand Tools like Spanner set, screw driver, nose pliers etc. 50 units are engaged in the manufacturing of hand tools giving employment to 8000 people.
Auto Parts Industry
Jalandhar is known for the manufacturing of good quality of auto parts. There are 300 units engaged in the manufacturing of auto parts providing employment to 4500 people. Several units are supplying auto parts to the original manufacturers of automobiles. There is export of Rs. 213.53 lacs of auto parts from Jalandhar during the year 1991-92.
Rubber Goods Industry
Jalandhar is known for the manufacturing of rubber goods items like V-shape chappals,V-Belts,Scooter/Cycle tyres and rubber rolls. There are 625 units giving employment to 6500 persons. There is export of Rs.682.62 lacs from Jalandhar.
Surgical Instruments units are labour intensive units. There are 275 units in Jalandhar providing employment to 2500 persons.
Jalandhar is known for manufacture of shoes and a number of allied units. Bawa Skins is an important export house of Jalandhar. At present, there are a large number of tanning units providing employment to a major section of the scheduled caste and other weaker sections.
Main Products of the District
Finished leather and leather goods.
Pipe fittings and Valve & cocks.
Toffee & tablets making machines.
Lathe & Drill chucks.
Establishments in Jalandhar
In Jalandhar, three kinds of establishments are usually found:
Big establishments: These are generally geared to exports besides catering to the domestic market.
Small establishments: These usually manufacture sports goods for the domestic market. Both the big establishments as well as the small establishments are registered either under the Factories Act, 1948, or under the Shops and Establishment Act of the state of Punjab.
The unregistered units: These are found particularly in the urban pockets of Jalandhar. These units are mostly small home-based units which are usually run by the family members, but at times with the help of a couple of hired employees. These units do not have a direct access to market. It has been seen that many a times when the big establishments – especially exporters – are not able to cope with large orders from their foreign clients, distribute a share of the production to these small unregistered, home- based units.
Small and Medium Enterprises (SME)
In the Indian context, the small and medium enterprises (SME) sector is broadly a term used for small scale industrial (SSI) units and medium-scale industrial units. Any industrial unit with a total investment in its fixed assets or leased assets or hire-purchase asset of upto Rs 10 million, can be considered as an SSI unit and any investment of upto Rs 100 million can be termed as a medium unit. An SSI unit should neither be a subsidiary of any other industrial unit nor be owned or controlled by any other industrial unit.
Description of SME in the manufacturing sector:
For the Manufacturing Sector, the MSMED Act 2006 defines micro, small and medium enterprises (MSMEs) as mentioned below:
A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs 25 lakh.
The investment in plant and machinery in a small enterprise is more than Rs 25 lakh, but does not exceed Rs 5 crore.
A medium enterprise is one where the investment in plant and machinery is more than Rs 5 crore, but does not exceed Rs 10 crore.
In all these, the cost excludes that of land, building and the items specified by the Ministry of Small Scale Industries with its notification No SO 1722 (E) dated October 5, 2006.
Major SME in Jalandhar
Chemicals & Pharmaceuticals
Textiles and Garments
Leather and leather goods
Computer Software, etc.
SME for Sports Goods in Jalandhar
There are approximately 1,000 small and medium sports goods manufacturers based in Jalandhar. The largest sports gear manufacturing hub in the country. The industry provided direct employment to more than 1.5 lakh people. The sports industry in the country is estimated at Rs 5,000 crore. “The contribution of Jalandhar to the industry is 60%. SME units based in Jalandhar made up to 25,000 to 30,000 footballs a day in 2008.
SME sports goods manufacturing units in Jalandhar are witnessing brisk business over the last few months. Spurt in demand ahead of the FIFA World Cup has prompted small-scale sports and football equipment manufacturers to increase their supplies in order to meet the burgeoning demand. With FIFA World Cup round the corner, we are witnessing a steep increase in demand for football and soccer
goods, which in turn, is helping the Jalandhar football equipment industry to witness rise in its sales and margins,” said R Kumar, proprietor of Union Sports International, a small-sized manufacturer of sports ball in Jalandhar.
SME sports equipment manufacturers are also undertaking training programmes to manufacture machine-stitched football, thereby shifting their focus from the hand-stitched ones. Promotional campaigns undertaken by retail houses are also helping to perk-up sale of soccer goods.
Demand for Jalandhar-made sports goods has gone up significantly over the last few months and is likely to increase further, with the peak business period beginning from March and likely to continue till May-end this year for global market, while it will last up to September in India.
Objectives of SME for Sports Industry in Jalandhar
High contribution to domestic production
Significant export earnings
Low investment requirements
Location wise mobility
Low intensive imports
Competitiveness in domestic and export markets
Limitations of SME for sports Industry in Jalandhar
Low Capital base
Concentration of functions in one / two persons
Inadequate exposure to international environment
Inadequate contribution towards R & D
Lack of professionalism
SWOT Analysis of SME for Sports Industry in Jalandhar
Contribution to National Economic Growth.
Generating Employment and Vitalizing Indian brand to the world.
Export Market Expansion.
Lack of Funds Lack of Marketing Skill Lack of Information.
Poor adaptability to changing trade trends.
Nonâ€availability of technically trained human resources.
Lack of management skills.
Enhanced credit support.
Support for technological upâ€gradation.
Growing domestic and international markets.
Distrust between SMEs and Financial Institutions.
Nonâ€tariff barriers from developed countries.
Steps foe setting up a SME Unit For sport good Industry
Obtain information on possible product lines
Identify suitable lines of activity
Obtain information on marketing, technical & financial aspects of these lines of activity
Select the product
Prepare a project profile/report
Obtain a Provisional Registration Certificate and get permission from the concerned authorities if necessary
Apply for the necessary infrastructure for plots/sheds, NOC from Pollution Control Board, Power & Water connection etc.
Apply and obtain finance from financial institutions Simultaneously
construct shed if required
obtain NOC from the pollution control board
arrange for electrical power connection
arrange for water & sewerage connection
recruit staff required
arrange for raw material
arrange for marketing
Commissioning of the plant & trial run
Major sports goods manufactured by SME Units in Jalandhar
Leather Boxing Gloves
Leather Punching Gloves
Inflatable Boxing Gloves
Kick Boxing Gloves
Straight Leather Punching…
Cricket Batting Gloves
Cricket Batting Grips
Wicket Keeping Gloves
Wicket Keeping Pads
Shuttle cock for indoor $ outdoor games
Target market for SME (sport goods, Jalandhar)
It may be difficult to believe, but most of India’s exports of sports goods come from SMEs. And the targeted countries are UK, USA, Germany, France, and Australia. And the SME clusters are mainly based in Jalandhar.
Some of the prominent items manufactured by these industries include: hockey and cricket equipments, fishing gear, boxing kits, protective equipment and also indoor games.
Raw materials include wood, steel, aluminum, plastics and resins, fiberglass etc. products are generally shipped directly to retailers and sporting goods distributors. Third party warehouses and logistics providers are often used to bring products to market.
Details of Raw Materials required & Machinery required for Sports Goods Industry:
A company dealing with manufacturing of sport goods needs to asses the nature of their prevailing market in order to come up with competitive price. So in this sector if the company is relatively new then they use introductory pricing strategies where the price of product is lowered at the beginning of production but as the company establishes itself in the market than they decide to raise their prices.
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The primary demand drivers for sporting goods are consumer income and demographic trends. The profitability of individual companies is determined by efficient manufacturing and effective marketing. Large companies enjoy advantages in economies of scale and brand recognition, and often offer a wide range of products, but SME companies compete effectively by offering specialized or unique products that interest enthusiasts.
A wide variety of manufacturing processes are used to produce varios types of sporting goods including metal, plastic and woodworking operations and tooling; assembly; packaging;supply chain coordination and shipping. Although much sporting goods manufacture is labor intensive, some processes are automated.
At a time when maintaining full capacity production and bearing high costs have become difficult for most businesses in Punjab, investment in automating processes by small firms in the state still continue to be steady. Despite facing severe hurdles on various fronts, small-scale units in the Punjab’s industrial sector are investing substantially in automation.
Cost related to production on their side would be of stamping the goods with their label and name. This would be the only cost which they would be bearing on the production side
Quality control is an ongoing process, which starts right from the initial stages and right up to finishing. They provide quality charts or quality specification for quality control.
There are many kind of raw material which used to produce a good, so it depend upon their customer that what kind of quality they want.
They try to use economic order quantity and just in time policies to manage their inventory.
They operate their functions with main office in Jalandhar.
Their buildings are small storied and divided into various parts for storing raw materials and one room for labeling. 24 hrs power supply. They follow just in time policy so they use a shed to store raw material.
Their core focus area of related to manufacturing are-
Benchmarking against global standards so as to efficiently manufacture quality products.
Building a strong and motivated work force by emphasizing safety, education and continuous improvement of the manufacturing capabilities and those of the vendors
The main objectives of plant layout is to optimizing the process of production process within the plant. Such an optimizing results in-
Productivity of activities
reduction of cost regarding to
smooth flow of
Process layouts are found primarily in job shops, or firms that produce customized, low-volume products that may require different processing requirements and sequences of operations. Process layouts are facility configurations in which operations of a similar nature or function are grouped together. As such, they occasionally are referred to as functional layouts. Their purpose is to process goods or provide services that involve a variety of processing requirements.
Advantages of process layouts
Flexibility. The firm has the ability to handle a variety of processing requirements.
Cost. Sometimes, the general-purpose equipment utilized may be less costly to purchase and less costly and easier to maintain than specialized equipment.
Motivation. Employees in this type of layout will probably be able to perform a variety of tasks on multiple machines, as opposed to the boredom of performing a repetitive task on an assembly line. A process layout also allows the employer to use some type of individual incentive system.
Facility layout and design is an important component of a business’s overall operations, both in terms of maximizing the effectiveness of production processes and meeting employee needs and/or desires.
Facility layout is “the physical arrangement of everything needed for the product or service, including machines, personnel, raw materials, and finished goods. The criteria for a good layout necessarily relate to people (personnel and customers), materials (raw, finished, and in process), machines, and their interactions.”
Advantage of facility layout
Ease of future expansion or change
In Sporting goods manufacturing, Facilities should be designed in such a manner so that they can be easily expanded or adjusted to meet changing production needs. So facility layout is very important
In sports goods manufacturing facility layout makes it possible to handle materials (products, equipment, containers, etc.) In an orderly, efficient and preferably simple manner.
This aspect of facility design includes everything from making sure that traffic lanes are wide enough to making certain that inventory storage warehouses or rooms utilize as much vertical space as possible.
Ease of communication and support
In sports industry communication within various areas of the business and interactions with vendors and customers can be done in an easy and effective manner with the help of facility layout.
So different SME for sport industry in Jalandhar uses different layouts according to their needs.
Supply chain management
The supply chain management system of SME for sports industry is very effective in Jalandhar. Their supply chain management system electronically link suppliers and customers with manufacturing and assembly facilities. Technology is also used to implement just in time strategies that reduce inventory needs while shortening product delivery times.
Various SME for sporting goods in Jalandhar-
Bhaseen Sports Pvt. Ltd.
34 Basti Nau Jalandhar
Goodwin Sports, Jalandhar
15-16, Dilbagh Nagar Extension, Jalandhar
Punjab , India
B-27, Sports & Surgical Complex, Kapurthala Road,
Sports Syndicate, Jalandhar
Jalandhar – 144 001, India
Old Hoshiarpur Road, Near HP Petrol Pump,
Jalandhar – 144 004, India
Behari Lal And Company
Nalhan Road, Basti Danishmandan,
Jalandhar – 144 002, India
Near Jalandhar Model School, Tanda Road,
Jalandhar – 144 004, India
Hans Raj Mahajan and Sons
G.T. Road, Suranussi,
Jalandhar – 144 027, India
Chopra Synthetic Rubber Udyog
Plot No. 3, Laxmi Nagar Complex, Opp. Central Leather Research Institute, Leather Complex Road,,
Jalandhar – 144 003, India
A N Mistry & Sons
Anand Sports Inds
Azad Sports Work
Jalandhar has the nucleus of sports goods industry in Punjab and has about 90% of the total sports goods units of the State. This industry being labour intensive despite inadequate capital and technology, has reached a stage where it is reckoned as a major cottage industry providing direct employment to about 10000 workers.
SME sports goods manufacturing units in Jalandhar are witnessing brisk business over the last few months. These units are playing an important role in development of the city.
Their supply chain management system, manufacturing process, layouts, quality control every thing is very effective. So this industry is growing very rapidly.
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