Bicycle industry feels the heat over drop in demand

Ludhiana: Having witnessed drop in demand, the bicycle and parts manufacturers of the city are jittery over the delay in floating of tenders for procurement of bicycles by several state governments. Businessmen said Madhya Pradesh, West Bengal, Assam and Karnataka, which by now float the tenders every year, have not yet initiated the process.
Inderjit Singh Navyug, former president of United Cycle and Parts Manufacturers Association (UCPMA), said, “Majority of Ludhiana’s bicycle and parts manufacturers are very heavily dependent on the tenders of bicycle floated by several state governments for free distribution under welfare schemes. But this year, no other state except for Tamil Nadu has floated the tenders for purchase of bicycles which otherwise was a routine affair for the governments of Karnataka, Madhya Pradesh, Assam, West Bengal, Rajasthan and even Punjab during these months. As a result, the entire bicycle industry, especially the micro, small and medium enterprises, are under a bit under pressure. But we are hopeful that the tenders will be floated by governments soon.”
Kulpreet Malhotra Bunty, a bicycle parts manufacturer, said, “The general recession due to drop in demand owing to steel prices meltdown coupled with the delay in government tenders has hit the bicycle industry badly. Though this is a temporary situation, we have come to know from sources that the soon some state governments are going to float the tenders and once it is done there will be movement in the industry. However, everyone strongly feels that the Punjab government should take measures to make the bicycle industry capable to produce high-end bicycles and other latest products so that new avenues of business can open for the bicycle and parts manufacturers.”