From sports gear to sportswear, Meerut – renowned as the sports goods capital of India – is going the whole hog. To cater to the entire range of sportswear demands, for both domestic and international markets, Meerut is now turning into a sportswear hub. And why not, with resources at disposal and a proven track record in sports goods production, it’s the logical way forward for Meerut.
If names such as Sareen Sports Industries (known internationally for SS brand of willows), which have recently entered into manufacturing of cricket clothing, there are others who have already carved a niche for themselves exclusively in the sportswear section, globally. Buoyed by their success, more players are set to enter the fray.
Despite bottlenecks, such as poor infrastructure and lack of dedicated industrial areas to set up production units, more companies are following suit, given that scope of growth in sportswear is quite immense.
KL Mahajan & Sons, the only 100 per cent EOU for sportswear, claims that manufacturing of compression apparels has witnessed manifold growth since its sportswear division came into being in 2000. It is going to set up a new factory to cater to the increasing demands. “With the new and advanced factory, we expect to increase our volume of exports and try working with the top brands,” says Manik Mahajan, CEO & Partner of the company, who also feels that Meerut’s proximity to Delhi works to its advantage in ensuring easy access to raw materials and ease of communication with prospective buyers.
When many small-time players are set to get the ball rolling, some established names are critical of the same and rue the fact that when big names are facing the heat from the administration related to issues such as taxes levied, excise duties, provident funds for employees, etc., fringe or small-time players are going scot-free, thereby spoiling the level playing field by offering products at much lesser prices, notwithstanding the compromise with the quality.
Observes Vineet Mahajan, Owner of Vega Industries, “Organized players are always on the radar of the local administration pertaining to issues such as excise duty, PF, etc., whereas small or unorganized manufacturers don’t have to follow all these rules and regulations and they are posing a big challenge to the organized players by flooding the market with cheap and inferior products.”
However, all do not share this view. There are also those who believe that these small-time sportswear manufacturers are only adding to the vibrancy of the market by offering quality products at competitive prices. Despite all hubbubs in the domestic market, Meerut’s contribution in terms of exports is far from being substantial. Dearth of skilled labour, lack of motivation and awareness, infrastructural shortcomings, besides instability in the export market, are some of the primary reasons attributed by the industry people. They are of the opinion that a united and collective effort by the Government and manufacturers can definitely turn this tide.
“We are making almost everything in sportswear section as per requirements,” observed Lokesh Vats, MD of Vats Sports adding, “We would be more than happy to start working with buying houses or buyers who can guide us in exports as it is something which is new for us.”
Vats Sports is incidentally the company that caters to the clothing requirements for as many as 11 Ranji Trophy teams in the country, besides supplying sportswear to scores of other renowned teams (involved in sporting activities) as well as some major corporate houses.
Structure of industry in Meerut…
- About 15 companies have organized manufacturing setups while around 100 other firms have small setups which are now making Meerut an upcoming sportswear hub.
- None of the players have more than 150 stitching machines in their factories.
- For fit, all are depending on their experience and very few have designers.
- There is no training support or land/industrial area for expansion.
Kasturi Lal & Sons (Active Sport Industry): Different way of working
The manufacturer is exporting 30 per cent of its total sportswear producing capacity of 300 pieces a day, to China, Sri Lanka, Nepal, Vietnam and Dubai. “We are exporting to China as the GST there is much higher on some products compared to India.
We believe in offering more facilities to our workers like flexible timings, food and extra benefits during over-time which also helps in ensuring timely delivery of orders,” maintained Shivinder Sharma, Director of the company, adding that despite the small setup, the in-house manufacturing facility of the company is its core strength.
It is also in talks with the UK-based buyers to cater to their requirements.
NK Sports & Hosiery Works: Good dealer network
Started in 1997, NK Sports & Hosiery Works manufactures 20,000 pieces per month and it has a good network of more than 125 dealers across the nation. Track pants and track suits are its main products. “We are dedicated to delivery schedule and our customers trust us for the same,” says NK Bhutani, Founder of the company, who is expecting at least 20 per cent increase in growth in the coming years. He further adds, “Government or trade bodies should focus on Garh Road and Mawana Road to develop industrial areas here. It will be a great boost for manufacturers like us as labour is available in both these areas which are also within the city limits.”
KL Mahajan & Sons adding first advanced apparel factory of Meerut
Currently doing more than 1,000 pieces (mostly track suits, hoodies) per day, KL Mahajan & Sons claims to be the sole manufacturer of compression apparel in the city. As it does high-value apparels only, its FOB remains in the range of US $ 10-12. Exporting currently to US and Europe, the company has 30 regular buyers including some prominent brands, retail stores and e-commerce sites.
The ISO 9001-2008 certified company is enthusiastic about its sprawling new factory spread over 15,000 square feet area in industrial area of Gagol, Meeurt.
“Our new unit will be at par with any other top-of-theline export house. We have a lot of space and we want to provide our clients with quality products. As fitness garments require imported fabric, we are in negotiations with some China-based companies to import directly from them,” says Manik Mahajan, CEO & Partner whose vision is to make products like Nike and Adidas. The company has also been awarded for being the No. 1 exporter of sportswear from India.
Vats Sports: Working for prestige; known for institutional supply
Headed by Lokesh and Navneet Vats, Vats Sports is making 4.5 lakh pieces of sportswear per year and the process of production – from cutting to packing – is all accomplished in-house. The company claims to be the first in Meerut to use digital printers for sportswear.
It manufactures sportswear for names such as SAI, ONGC, Railways, Air India, SAIL, EIL and many more. “Our strength is to manufacture any product in sportswear with competitive pricing,” adds Lokesh, whose 60 per cent of the business is into institutional supplies.
He further believes that growth can be speeded up even more if issues like availability of skilled labour are solved. With a capacity of 100 machines or more, Lokesh feels that some more big players are entering this segment which would eventually help markets to open up more explicitly now. “In next five years or so, things will fall into place as small players who are spoiling the market would be wiped out,” he adds.
Vega Industries: Exporting 30 per cent; will install CAD this year
Starting with yarn and transforming into a sportswear manufacturing company in 2003, Vega Industries is into exports, institutional supply and domestic retail as it has tie-ups with 800 retail outlets in India. Exporting 30 per cent of its production last year, it increased the volume by 25 per cent more. Cricket clothing, track suits and shorts are some of its products that are exported to UK, Gulf, Australia and US with FOB of US $ 3.5 to 4.5.
“To offer more fit garments and to be cost-effective, we will install CAD this year. Our designing department is also good as we have three designers dedicated to product development and have total staff strength of five for sampling,” says Vineet Mahajan, Owner. The company specializes in shorts, tees and bottoms. It hires unskilled and semi-skilled workers and trains them up for the job, besides paying them for two months during their learning period so as to motivate them even more.
