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Covid cripples Rs 1,200-crore Jalandhar sports industry

Manufacturers don’t see revival in demand anytime soon

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Vijay C Roy

Tribune News Service

Chandigarh, May 13

Stumbling Blocks

  • Stuck payments
  • Supply-chain disruption
  • Closure of markets, malls, stadiums, gyms

The cancellation of sports events across the world amid coronavirus pandemic has cast shadow over the Jalandhar sports industry. In March, Indian cricket saw the series against South Africa abandoned. IPL was also cancelled. The Indian Super League final (football) was held in an empty stadium in Goa on March 14. The I-League season was called off with 23 matches left. Similarly, The All England Championships, which concluded on March 15, was the last event in which India’s major badminton stars participated. In tennis also, India was to take on Latvia in a Fed Cup playoff on April 17-18 but that too has been postponed.

The industry, which was banking on demand generated by these events, is clueless about future and foresees no signs of revival in next 1-2 years. The industry, dominated by around 500 units in MSME sector, is battling for survival with payments stuck and virtually no orders in hand.

The lockdown was announced at a time when the industry was gearing up for the demand which is common during March-October. Especially, summers are considered as the peak season because of summer vacations when many cricket academies open and summer camps are organised across the country.

“Our stocks are lying with us. We are uncertain about the future. Even if we want to commence production, there are no signs of demand as markets are closed, stadiums not accessible to masses and major sports activities have already been cancelled,” said Munish Chopra, proprietor, Chopra Synthetics.

He said the biggest buyers — schools, universities, gymnasiums and sports clubs — are shut, resulting in virtually no uptake of sports goods. The losses of manufacturers are mounting as they are yet to receive payments but have to pay fixed electricity charges despite their units being closed.

Punjab and Meerut in Uttar Pradesh are hubs of sports industry, with former contributing 60% to total sales. The Rs 1,200-crore sports industry of Jalandhar contributes around 30% to exports from the country.

“Though there is no demand, even if we want to start operations, labour is hardly available as a large number of migrants have left,” said one of the manufacturers.

“The cancellation or deferment of exports and domestic orders has started biting the industry. The extension of the lockdown will give a major jolt to the industry. Sports goods don’t come under essential items. This will delay the revival of our industry and it will take at least 1-2 years,” said Ashish Anand, CEO, Anand & Anand and chairman of Sports and Toys Manufacturers Association.

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