In an interview, Trilok N Anand, member of The Sports Goods Manufacturers and
Exporters Association (SGMEA) and the Director of Sanspareils Greenlands
Private Limited, shared his opinion on the present status of SMEs in
the sports industry and also voiced for augmenting non-traditional
sports items in the export basket of the sector.
Here are the excerpts from the interview...
How do you find SGMEA's role in sports industry?
Trilok N Anand:The Sports Goods Manufacturers and Exporters Association (SGMEA) is playing the role of a facilitator in the sector and is gearing up for more advancements to provide fillip to the industry.
How are exports playing out for the SMEs in this industry?
Trilok N Anand: The exports of sports goods currently stand at Rs 600 crore per annum, which is just minuscule, compared to the other industries in the MSME sector. The potential is immense and can grow at 40%-50% per annum if the basket of items is increased to include non-traditional sports items.
What are the growth opportunities for the SMEs available in the domestic front? Trilok N Anand: For SMEs, immense growth opportunities exist in the domestic market. However, because of constraints in production, the erstwhile manufacturers have now also become traders and importers and trying hard to build their own brands.
What are the key challenges the sector is currently facing?
Trilok N Anand: First of all, the industry lacks direction and the need to innovate. The industry leaders are content and happy with what they are doing. There has to be a challenge to perform in an outstanding manner, out of box thinking, and excel in areas not touched so far such as non-traditional sports like winter sports, skiing, martial arts, hiking and trekking, baseball equipment, golf equipment, etc.
What according to you are the drawbacks of the 1% hike in excise duty on sports goods announced by Finance Minister in Budget 2012-13?
Trilok N Anand: The government has announced the excise duty hike of 1% to 2% on sports goods. However, on sports gloves, this has been levied at 12%. This is because of Harmonised Code, and these gloves are appearing in Chapter 42, 61 & 62, whereas there is a full Chapter 95 dedicated to Toys and Sports goods in Central Excise Tariff of India. As a matter of fact, all items of sports goods should attract an excise duty of 1% to 2%, or no duty at all, to encourage more and more people to participate in sporting activity.
Lack of skilled manpower is emerging as a major issue for the small sector at the moment. What measures should be taken in this regard?
Trilok N Anand: By its very nature, the sports goods industry is highly labour intensive. We are now seeing a major hurdle in getting workers in the traditional crafts of making cricket balls, cricket equipment, hockey sticks, football and inflatables. The sports industry has to go in for major mechanisation, skill development, and improvement in productivity levels. The skilled labour crunch has been a problem, is a problem, and will be a problem, and industry has to live with it.
What are the growth prospects for new entrepreneurs entering the sport industry?
Trilok N Anand: Growth prospects for new entrepreneurs entering the sports industry are immense. Sky is the limit for them. Unfortunately every new entrepreneur is getting into trading and very few are venturing in manufacturing. The foundation is there for them to build skyscrapers.
Are you satisfied with the Union Budget presented by the Finance Minister recently?
Trilok N Anand: The Union Budget for 2012-13 is neutral for MSME sector. If the government really wants to encourage this sector, apart from what both State/Central governments are doing, the plethora of rules/regulations that govern MSMEs should be eased out. The government should give encouragement to this sector as it is considered as the backbone of the country's economy and creates the maximum jobs, and also creates entrepreneurs for the future.
What according to you have been remarkable developments Central Government made in the sports industry in last 6 months?
Trilok N Anand: Cannot think of anything remarkable. For one the infrastructure for the growth of playing sports is totally missing, along with the Government's various schemes. Sports should be given impetus by making it compulsory in schools. Note: All opinions expressed in this interview are views of the person being interviewed. IndiaMART SME News completely disclaims any responsibility for the views expressed.
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