Ludhiana bicycle industry witnesses 60% drop in production due to labour shortage

Ludhiana, June 2 (KNN) The bicycle industry in Ludhiana is facing significant challenges as a shortage of labour has resulted in a drastic 60 per cent reduction in production in bicycle and parts manufacturing factories, reported TOI.

These factories, primarily comprising micro, small, and medium enterprises (MSMEs), contribute to nearly 90 per cent of India's bicycle parts production and over 70 per cent of the country's total bicycle production.

Talking about the reduced daily production rate, leading bicycle parts manufacturer and exporter, Avtar Singh Bhogal said, “Bicycle industry is in dire straits due to shortage of labour, and because of this our productions are down to 40 per cent as compared to before). If a factory was earlier producing 10,000 BB (bottom bracket) cups a day, it is now only able to make up to 4,000 pieces.”

Bhogal pointed out that this fall in production has also lead to delayed payments, as the industrialists are unable to supply the products to their buyers on time. He added that despite having orders, we are unable to process them timely, thereby leading to disruptions in payment cycles as our customers ideally clear payments of previous orders against delivery of new orders.

“Situation is likely to remain the same for the next two months, and it will be very challenging for us to manage our businesses,” he said.

Former president of United Cycle and Parts Manufacturers Association, Charanjit Singh Vishivkarma said, “Over the last few months, there has been a steep increase in the sales of bicycle parts without bill and paying due GST. People indulging in these malpractices are able to sell the products at 15-20 per cent cheaper rates than the factory owners following fair trade practices.”

“This problem has become a headache for the bicycle industry, and over the span of last six months, market share of genuine companies has reduced by at least 10 per cent due to this. Coupled with labour shortage, our sales have come down by 50-60 per cent,” Vishivkarma pointed out.  (KNN Bureau)