Chinese blankets fail to deter domestic manufacturers

PhoVijay C Roy

Tribune News Service

Chandigarh, January 16

Chinese goods have already dominated the Indian market as every home is teeming with Chinese products. However, when it comes to polyester blankets, people prefer Panipat-made blankets as compared to those made in China. These are economical and available in wide range of designs.

Panipat is the hub of blanket industry. The size of Panipat’s blanket industry is around Rs 5,000 crore. There are around 42 units in the city which are engaged in manufacturing of polyester blankets.

India may be ages away in ensuring enabling conditions for entrepreneurs as compared to China, however, Panipat polyester mink blanket manufacturers seem to be undeterred by Chinese manufacturers, who bank on aggressive pricing, state subsidy, protectionist policies and cheap finance, according to trade insiders.

According to the manufacturers, Panipat-based manufacturers are not only ruling the domestic market but also increasing their exposure in the exports market, especially to the US and Brazil.

“A majority of the industry diversified from acrylic blankets to polyester blankets around 5-7 years ago. Earlier, Chinese companies were having dominance in the domestic market, but from the past few years, imports are negligible. Now, the Panipat-based manufacturers are ruling the domestic market,” said PS Sachdeva, managing director, Sachdeva Home Furnishing (P) Ltd.

“Also, the exports of polyester mink blanket are likely to touch Rs 300 crore as compared to Rs 150 crore last year, especially with increased demand from the US and Brazil,” he said. He said the share of Indian companies was increasing every year in the blankets priced below Rs 2,000.

On being asked about the reasons behind increase in exports, he said, “We have an edge over China, especially in the below Rs 2,000 range, while China enjoys dominance in the premium range priced above Rs 2,000. Our exports are expected to double this year as wages in China have gone up significantly as also the power tariff.”

Now, the average wage of semi-skilled and skilled labourer is around Rs 50,000-Rs 60,000 while in Panipat it is around Rs 12,000-Rs 18,000. Also, the power tariff in Haryana for the industry is around Rs 7.50 per unit while it is Rs 11 in China. Moreover, in the current fiscal, the polyester yarn was under stress due to weakening global demand and it led to reduction in input costs. It was trading around Rs 84 per kg as compared to Rs 100 last year.

The manufacturers said the last and current financial year have been good for the industry because of early and cold winters. Also, the market is witnessing a substantial growth due to growing consumer awareness and availability of wide range of designs in the market.

To cater to the growing demand, new units are coming up besides the existing ones expanding their manufacturing capacity.

“Last year, we had expanded our manufacturing capacity by 20%,” said Raghav Gupta, proprietor, Raghav Woollen Mills.

Propelling factors

• Increased demand
• Lower wages as compared to those in China
• Low power tariff
• Competitive prices of yarn

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