Lockdown slams brakes on cycle parts manufacturing - The Tribune India

Vijay C Roy

Tribune News Service

Chandigarh, May 11

Major Demands

Manjit Singh, a 34-year-old entrepreneur of Jako Industry, Ludhiana, had never imagined in his wildest dreams that his micro unit manufacturing plastic cycle parts would come to a halt amid coronavirus pandemic. Working at a margin of less than 10%, his savings have been wiped out to manage day-to-day expenses of home, fixed costs like electricity and managing suppliers.

“I don’t know what future holds for me. My workers have already left for their hometown. Besides, my payments are stuck and I am unable to pay my vendors from where I procured raw material. Even if I wish to restart my operations, I can’t,” he said.

Manjit is not alone but there are thousands of micro, small and medium enterprises engaged in bicycle parts manufacturing and face closure.

“I am trying to retain my labour by giving them requisite expenditure by borrowing from institutional and non-institutional sectors. My factory is in mixed land use area, so I can’t start operations at the moment as per norms,” said Kuldeep Singh, proprietor, Charankamal Industry. He employs eight persons.

With more than 60,000 cycles manufactured every day, Ludhiana is the hub for bicycle manufacturing in India. According to Indian Bicycle Manufacturers Association, Ludhiana produces over 1.5 crore bicycles per annum with the support of small and medium ancillary units. In value terms, the industry is Rs 7,000 crore.

According to the industry, there are 4,000 MSMEs in the organised sector in Ludhiana besides cycle manufacturers such as Hero, Avon, TI, Hi-Bird, Nova and Neelam. Besides, there are thousands of small units in the unorganised sector.

These MSMEs supply 80% parts to big companies and play a pivotal role in the supply chain. However, the pandemic has broken the backbone of the MSMEs. Out of 4,000 units, less than 10% are working in the organised sector.

“The government must bail out the MSMEs as their existence is at stake. The sector is facing this crisis for no fault of theirs but due to force majeure,” said Manjinder Singh Sachdeva, president, Bicycle Research and Development Organisation.

“Our payments are stuck with virtually no orders. Though some units have started production at one-third capacity, it will take time to normalise,” said Gurmeet Singh Kular, president, Federation of Industrial and Commercial Organisation.

At present, the industry will not be able to run to its full capacity due to constraints of non-availability of raw material, social distancing norms and other restrictions.

He said the government must bring bicycles under essential commodities so that retail stores are opened and inventory is cleared.

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