JALANDHAR SPORTS GOODS CLUSTER

1. Executive Summary

The sports good cluster of Jalandhar produces mainly equipment, sports shoes and
protective equipment for cricket, football, badminton, hockey, and boxing. The cluster
has a vertically integrated production system with jobs widely sub contracted.
However, it is way behind leading international suppliers, especially with respect to
technology. There is also problem of accessing “new-age” raw materials at
competitive process. The unit value of products is low. There is absence of quality
BDS providers to support the cluster. Compliance to social norms is increasingly
required by buyers.

The strategy adopted for the development of the cluster was to move up the value
chain through product and process standardization, introduction of new technologies,
development of human resources and efficient management of the supply chain. The
tools identified to meet these objectives were the formation of focused network of
firms to be then linked up with vibrant BDS providers while introducing a
developmental agenda for industry associations and developing linkages with cluster
based knowledge institutions.

Initiatives were taken to strengthen two important cluster associations – The Sports
Goods Manufacturers and Exporters Association (SGMEA) and Association of Indian
Sports Goods Industries (AISGI) to act as nodal business agencies for the
development of the cluster. The Sports Goods Foundation of India (SGFI) that works
on prevention of child labour was strengthened to scale up its scope. Several BDS
provides were introduced in the areas of social compliance, football technology up-
gradation, technical training, composite technology etc. Industry associations,
especially SGMEA, undertook strategic activities including human resource
development (HRD), bringing in international expertise and strengthening backward
linkages for raw material & machinery. It has evolved as a strong association with
involved members, professionally managed secretariat and capacity to mobilise
resources. BDS providers in the areas of technology and marketing were linked to
networks of firms. Support institutions have also been roped in for creating
customised training programmes. A consortium-led approach for joint manufacturing
and common procurement were also demonstrated.

The cluster is now moving from addressing immediate needs to a long-term action
plan derived from the overall cluster vision i.e. where firms want to see themselves in
3-5 years from now. In this context a ‘Vision 2010’ workshop was organised. As a
result, cluster firms have formed various advisory groups to drive collective initiatives
on technology upgradation, productivity improvement, product diversification, etc.

The process is picking up pace, especially as industry is beginning to drive.

However, further facilitation is required to sustain the momentum and broad base the
work. The cluster firms and industry associations have demanded continuation of
UNIDO work in the cluster as local capacity is still insufficient to carry on with long
term cluster development initiatives. UNIDO has started a new project in the area of
Development of Small and Medium Enterprise (SME) Cluster and its impact on
Corporate Social Responsibility (CSR), which would enable UNIDO to continue its
developmental work in the Jalandhar Sports Goods Cluster.

2. Evolution, Turning Point and Current Status

Cricket, tennis, hockey and football were introduced by the British army in India. With
the increase in British presence the demand for the sporting hardware also
increased. The elite and thereafter the middle class followed this trend. Those were
days when goods took weeks to arrive from England and had prices out of reach of
the average Indian.

The origin of the sports goods industry in pre-independence India can be traced back
to Sialkot (now in Pakistan). Situated in the foothills of the mountains, it was an ideal
place to grow trees needed for wood to make cricket bats and hockey sticks.
Production started off with a British colonel suggesting Mr Gainda Singh Oberoi, a
local wood dealer, to manufacture tennis racquets out of mulberry, which was then
used only as domestic fuel. Thus the first sports goods factory - Oberoi Limited –
was set up in 1888 in Sialkot. India’s debut in hockey, in the 1928 Amsterdam
Olympics, gave the industry a boost. Sialkot started producing hockey sticks as well
as footballs and the industry flourished.

After independence, a portion of entrepreneurs and workers decided to shift from

Sialkot (by then Pakistan) to India. Initially the migrants settled in Batala, which was
nearer to Sialkot and close to mountain where the typical wood needed for sports
items could be grown. Subsequently, according to a resettlement plan of the
Government of India, entrepreneurs and workers settled in Jalandhar. Jalandhar was
also found suitable by the Industry, as its foothill location assured regular supply of
coniferous wood and here also existed a traditional leather market, the two principal
raw materials for the industry. A section of the industry also settled in Meerut in the
neighbouring state of Uttar Pradesh, where wood and leather were also available in
plenty. The added advantage was proximity of Meerut to Delhi, which emerged as a
large market for sports goods.

Jalandhar is an important city of the state of Punjab. It is placed in the Doaba region
(between the rivers Satluj and Beas) and is strategically located between the two
important industrial cities of Ludhiana (70 Kms) and Amritsar (60 Kms). It has two
other important SME clusters of hand tools and leather. There are also a good
number of units making rubber based items like rubber slippers. The strong export
base of Ludhiana as well as continuous migration of a large number of local youth to
the developed countries surely provided a fillip to the growth of export markets for
the sports goods industry. The strong built of the natives supported by a robust
agriculture and agro based productions led to a good affinity to sports. The strong
presence of armed forces in the region as well as good support by local large
companies and State Government provided a conducive environment to develop a
keen interest of the local population in sports. These elements naturally helped in the
development of a thriving local market for sports goods and provided an impetus for
the growth of the cluster.

At Jalandhar, the sports goods industry is to be found in two localities in the central
part of the town, namely Basti Nau and Basti Sheikh. As the industry grew, the
cluster also reached to adjoining areas of Basti Daneshmandan and Nakodar Road.
The job workers of the industry, who are important elements of the production
system and whose predecessors migrated with the entrepreneurs from Sialkot, are
settled in Bhargav Camp and Basti Daneshmandan, adjacent to the above areas.
Entrepreneurs who set up modern units with mechanized production systems,
subsequently shifted to the industrial area, fringe areas located on the highways to
the city and also to the Sports and Surgical Goods Complex. However the network of
the traditional business process is so strong that even these units have their office or
some production facilities in Basti Nau and Basti Sheikh - the traditional locations.

In 2002, the official figures put the total numbers of firms at 1,235 with a total
turnover of Rs 2.4 billion (500 USD million) and employing around 9,000 persons.
However the exact number of firms may be quite different, as a large number of
micro- enterprises and sub-contractors remain unregistered. On the other hand,
many larger firms get registered as multiple SSI units. Moreover, the household job
workers for the Industry, like football stitchers, net weavers and racquet gutters,
remain unrecorded. Though they are an important segment of the cluster, they do
not come under the definition of industry. The number of such household may be
nearly 6,000 as already 3,000 football-stitching households have been identified. The
traders, an important stakeholder of the cluster also remain un-enumerated.
Similarly, getting a reliable estimate of the production of the cluster is also difficult.
From an analysis of market, the production of the cluster was estimated at around
Rs. 4,000 million in 2002.

3. Key Cluster Stakeholders and their Linkages

There are five large units in the cluster. Established almost since the settling of the
cluster in its present location, four of these units are leading manufacturer and
exporter of inflatable balls in India while the fifth one is the largest exporter of cricket
equipment.

Though there are more than 100 members of the Sports Goods Export Promotion
Council (SGEPC) from the cluster, the number of regular exporters is around 75.
Most of these exporters are also members of SGMEA. These units produce
inflatable balls, cricket bats, cricket protective gears etc., which are the traditional
export items from the cluster. With higher production capacities and well laid-out
factories, these firms constitute the top level of the cluster hierarchy. Few of these
firms have adequate testing facilities to assure the quality of their products and few
have are also ISO 9001 certified. Product diversifications and technology
upgradation in the cluster generally originate from these firms and they were the
pioneers in starting sports shoe export. Moulded inflatable ball is another new
product introduced to the cluster by these units. These units were estimated to have
a turnover of Rs 2,500 million in 2002.

There are estimated to be around 450 suppliers to the domestic market and a
number of these firms are member of AISGI. These units are smaller than exporting
units and as their main market are domestic buyers. Their product range is also
different. Many of these entrepreneurs are themselves highly skilled in
manufacturing of some product and that is the core competence of their firm. Many
of them still personally inspect the quality of each product. Due to their personal
approach to marketing, these entrepreneurs make regular visits to their ‘pocket’
markets. Often these firms supply to larger manufacturer-exporters, providing them
highly flexible manufacturing capacities. These firms generally do not export,
because of an insufficient capital base and lack of human resources to complete
legal formalities. However, some of them are occasional exporters and members of
SGEPC. The estimated turnover of these units was Rs 3,000 million in 2002.

Micro-enterprises and subcontractors constitute the bulk of the cluster. Basically one-
man set-ups, these firms are characterized by the manufacturing skill of owner, who
is often also a regular worker. Firms of this category carry out operations like
stitching inflatable balls, producing shuttle cocks, stringing racquet, etc and engage a
large number of job workers. They operate as subcontractor to the above firms and
many have very good position due to their reputation and skills. Producing single
items, these micro enterprises do not undertake direct marketing due to limitated
resources and manpower. However they have regular over-the-counter buyers, who
are very aware about product quality. Concentrated in the core cluster locations
(Bast Nau and Basti Sheikh), these firms are difficult to enumerate as they are not
get registered with the DIC. 3,000 of such micro enterprises making only stitched
balls have been identified by SGFI, and their total number may be near 6,000.

Moreover, there are two types of job workers - those who work in the firms and
factories of the above categories and those from their home. While employing skilled
workers at job rate is universal in the cluster, due to its characteristic manual skill
based production method, the household job workers are engaged in stitching
footballs only. It is estimated that there are 10,000 such households.

Industry Associations are important fora of cluster- firms. As, The main associations
of the cluster are i) Association of Indian Sports Goods Industries (AISGI), ii) Sports
Goods Manufacturer and Exporters Association (SGMEA) iii) Sports Good
Federation of India (SGFI).

One of the main functions of all industry associations was following up with the
Government on tax related issues and statutory laws. AISGI also helps its members
recover delayed payments from customers. At the time of the diagnostic study, no
association provided technology support nor market related services to its members.
While SGMEA had regular meetings of its Governing Body, AISGI was not much
functional in this regard.

Other institutions present in or in the vicinity of the cluster are Dr. B.R Ambedkar
National Institute of Technology, Jalandhar (NIT) and Regional Centre for Extension
and Development (RCED) of Central Leather Research Institute (CLRI). NIT has a
well-equipped laboratory to test all types of fabrics, chemicals and some physical
testing and a well-endowed faculty. The RCED also has a well-equipped laboratory
for the testing of leather. The Centre has a training centre for skill development on
leather garments.

Among Government promotional bodies for sports goods, Process and Product
Development Centre (PPDC) for Sports and Leisure Goods, Meerut and SGEPC,
New Delhi, are the most important. SGEPC is an apex body established by Ministry
of Commerce, Government of India, for the promotion of sport goods exports. Its
members comprise 200 leading manufacturers and exporters of sport equipment of
all disciplines. With Head Office in New Delhi, the Council has a Branch office at
Jalandhar to facilitate exports from the cluster. SGEPC have “created confidence
among overseas importers by providing a kind of third party guarantee”. It plays the
role of an intermediary between foreign buyers and domestic manufacturers. The
council also facilitates participation in international trade fairs like ISPO (Sports
Equipment fair) at Munich, Germany and Super Show (Sports Equipment Fair) in the
USA.

Among the specialized financial institutions Export Credit Guarantee Corporation

(ECGC) is providing excellent support to the cluster. It provides insurance from
financial risks involved in exports to local manufacturers. This is providing a great
impetus to exporters to venture into the new markets of Africa and Latin America.
Small Industries Development Bank of India (SIDBI) helps in the modernization of
the sports goods cluster through its various products. The National Small Industries
Corporation (NSIC) offers a host of relevant services like machine on hire purchase,
exposure to export market etc.

SGS is an international Company providing services in the areas of quality

management and certification and one of the few accredited laboratories for sport
goods. Historically, SGS played an altogether different but important role in dealing
with the problem of child labour in the stitching of inflatable balls. While SGFI
initiated corrective measures “to guide the child labour to schools”, the industry
approached SGS to monitor and certify absence of child labour, particularly for
exports. The involvement of a reputed organization like SGS in such assurance
helped the industry establish its products in international markets. In a systematic
effort, the local office of SGS along with SGFI has identified more than 3,500 regular
sites (mainly households) for the stitching of inflatable balls in Jalandhar and its
vicinity. The exporters are obliged to get their stitching jobs executed at these sites,
which are regularly monitored by the inspectors (initially of SGS, now SGFI).

4. Major Problems

At the time of the diagnostic study, the major problems faced by the cluster were:

A poor human resource base: Human resources development was one of the most
neglected areas in the cluster. There was almost no systematic training system (on
or off job) for workers. As the prevalent manufacturing system is skill-based manual
operations, the traditional training method is graduation from helper to semi skilled
and then to skilled worker. Interestingly, quite a few institutions have facilities for
training in garment stitching , shoe making, etc. However training curricula and
methodology of these institution were dated and would hardly introduce any
improvement in the existing production.

Lack of high quality BDS providers: The cluster could become more competitive, among
others, through efficient sourcing and technology up-gradation. Composite technology,
technology to manufacture footballs of international match quality and protective
equipment with international product safety standards (CE compliance) are so
specialized that consultants/institutions with adequate knowledge were not available
locally. Moreover, the raw materials used in the industry are as diverse as the
products and are increasingly being replaced by equally diverse advanced materials
such as graphite (for tennis racquets), polymers (for inflatable balls and shoes), fiber
glass, Kevlar and carbon (for hockey sticks). Lack of linkages with providers of raw
materials is more acute in the case of footballs, which is the largest exported item of
the cluster. However cluster producers, particularly the smallest ones, could not
source these material adequately and at a competitive price charged due to high
tariff inefficient supply channels. Adequate BDS providers could make an important
contribution to the growth of the cluster both for sourcing raw materials and adopting
new technology.

Social Compliance: The next big challenge looming before the cluster was the
insistence on ensuring compliance to social standards. While the cluster was able to
address the problem of “child labour”, it needed to look at the broader issue of
Corporate Social Responsibility including issues related to health and safety, living
wages, freedom of association, non-discrimination. Buyers were increasingly
qualifying suppliers based on social audits.

Weak Private Institutional Setup: The reluctance of cluster stakeholders to

collectively address their developmental needs had seriously impaired the capacity
of the cluster to meet emerging challenges in the above areas. A unified face of the
cluster would have also helped gather Government support ensure the customized
technical services. The inability of industry associations to introduce demand-based
value-adding services, weak secretariat and lack of linkages with appropriate support
institutions were major bottlenecks.

5. Vision for the Cluster

From the discussions held with various stakeholders, the vision that evolved for the
cluster is: The cluster will endeavor to retain its position as leading supplier of
conventional sports and leisure goods in the domestic market and increase its share
in the global market for sports goods, particularly stitched inflatable balls for
recreational and leisure use, while providing maximum value for money to the user.

6. Implementation Strategy

The strategy adopted for the development of the cluster was to introduce better
products, moving up the value chain through product and process standardization,
introduction of new technologies, development of human resources and efficient
management of the supply chain. The tools identified to meet these objectives were
focused network of firms, introduction of vibrant BDS providers, introduction of a
development agenda for the industry associations and developing linkages with
cluster based knowledge institutions.

As an outcome, initiatives were taken in 2003 to strengthen the two important

industry associations to act as nodal agencies for the development of the cluster.
Efforts were also made to locate suitable BDS providers for technical and sourcing
support and to sensitise the technical institutions in the vicinity of the cluster about
the training need of the sports goods industry. During the year 2004, industry
associations were promoted to drive the process BDS providers in the areas of
technology and marketing were also linked to networks of firms. Technical institutions
were roped in to create customised training programmes. In 2005, linkages with
specialised BDS were provided to move up the value chain through introduction of
better technologies and relevant standards, and efficient management of supply
chain.
7. Major Activities

7.1 Human Resource Development

The objective of this intervention was to provide suitable training inputs to the labour
force in the cluster, especially to train new workforce and enhance the technical
knowledge base of existing workers and supervisors.

To start with, linkages were strengthened with cluster-based technical institutions.

Through tripartite discussions among industry representatives, technical institutions
and the Cluster Development Agent (CDA) it was agreed that, in order to address
this need, systematic class-room training was essential to supplement the traditional
on-the-job training practices. Thereafter technical institutions like NIT and CLRI were
promoted to design the course structure, complementing the inputs from the local
industry association.

A three-month training programme on “soft protective gears” was thus conducted by

CLRI. NIT organized a 3-month training programme on polymer technology. The
industry association is building on the success of both these programmes. It is
planning to organize soft protective stitching programmes with CLRI on an ongoing
basis and has requested NIT to organize a three-month programme on new
materials used in sports goods manufacturing. The technical institutions are now
more responsive and tuned to the needs of the cluster.

Box 1: Training Programme on Soft Leather protective equipment

Soft protective items for sporting goods industry include gloves, caps, abdomen guards, leg guards
etc. Soft protectives are made from fabrics like leather, cotton and synthetic cloth, PU, etc.. These are
stitched with stiffeners to provide adequate protection.

The Jalandhar Sports Goods Cluster has witnessed steep growth in demand for soft leather (synthetic
leather/PU) protective equipment. There has been an increase of 20% in exports of protective
equipment over the last couple of years. This has led to need of more skilled workers. Traditionally,
stitching skill used to flow from parents to children. This trade was mostly handled by families
belonging to weaker communities. Though the product is more than fifty year old, there is no skill
development course for soft protective locally.

On discussions with the cluster based institutions it was found that the RCED of CLRI, together with
inputs from the industry (SGMEA), could be fully capable to conduct a training programme for soft
protective stitching. A three-month programme was thus organised by CLRI with their infrastructure,
faculty support form the SGMEA and funding support from Department of Science and Technology
(DST). A batch of 19 candidates was trained out of which about 50% were absorbed in the industry.
Certain shortcomings were noticed in the training programme based on which the training modules
have been revised.

SGMEA plans to train additional 100 candidates over the next year for which a proposal has been
submitted to DST for financial support.
7.2 Promotion of BDS providers

BDS providers were promoted in the cluster with the objective of technology up-
gradation in the areas of composite technology and football manufacturing, CE
labeling for protective equipment and to demonstrate new business linkage.

For composite technology, a number of BDS providers and raw material suppliers
were introduced to the cluster through raw material and machinery buyer seller meet.
Many new raw material suppliers were also in introduced in the areas of odorless
water based inks, pre-vulcanized latex; PU sheets, etc..

SGRM 2004: A Step Towards the Global Value Chain

The “1st International Sports Goods Raw Materials & Machinery Buyer Seller Meet (SGRM 2004)”
was held in November 2004 in Jalandhar. The idea was mooted by the CDA. Thereafter the CDA and
the representatives of SGMEA identified the list of targeted raw material and machinery along with
their technical specifications. Following that, a BDS provider was hired by SGMEA to identify relevant
suppliers including foreign suppliers. A visit was also organised to Delhi Leather Fair, where contact
was established with Indian Footwear Component Manufacturers Association (IFCOMA) and useful
raw material suppliers. Another BDS provider was also hired to compile list from the internet. SGMEA
also formed a committee to organise the buyer seller meet (BSM). With all these efforts there were 24
paid participants in the BSM.

The SGRM 2004 introduced key suppliers of value added PU sheets (Dong Woo Alt, Korea) as also
pre-vulcanised latex (Ravertex) and water based inks (Kinnari Printing Technologies Private Limited
and INTRA-KECK Pvt.. Ltd) for the football segment. Supplier of these inputs received serious
inquiries. A few leading inflatable ball-manufacturing units got together to purchase raw material (PU,
PVC) collectively. The arrangement was a win-win situation for all involved including the supplier
(DCP Synthetics). This raw material consortium purchased the entire range on display at the SGRM
2004 as a sample order. The difference in price was in the region of 50%.

Participation of Thai Epoxy and Allied Products Co. Ltd addressed the problem of product
development in composite material. The company agreed to support the development of products like
composite hockey stick and beach bats. Industry discovered multiple options to seek composite
technology, which is technology for the future with increasing pressure to move from natural raw
materials like wood.

The event has not only been a collective effort by the industry, indicating emerging vibrancy in the
cluster, but it also served to be a strategic milestone to address cluster’s common challenges on raw
material and technology front. SGMEA created a surplus of about Rs 1.5 Lac from the BSM. SGMEA
is planning to replicate the event at a much larger scale in 2006.

Exposure visits were organized to composite component manufacturing facilities at

RV-TIFAC Composites Design Centre, Bangalore. An epoxy resin supplier was also
introduced to the cluster. He took hockey stick samples from the cluster and
developed a step-by-step procedure to manufacture composite hockey stick. He also
provided information on machinery required for this purpose. These interactions
gave lot of confidence to the interested firms who regarded composite technology as
very expensive and requiring a great deal of sophistication.

For technology up-gradation of footballs, a network of football manufactures

identified the key technology gaps. Thereafter, a international search was carried out
with the help of Asia Pacific Centre for Technology Transfer (APCTT) for an expert
who could advice firms. A French expert was identified and is expected to visit
Jalandhar in 2006 to provide technical consultancy to improve footballs quality to
“match quality”. Several experts, including an international expert from Senior
Experten Services (SES), Bonn were introduced in the area of rubber based sports
goods technology. A training programme was also organized by NIT on rubber based
sports goods. Many SGMEA members agreed to implement the suggestions of the
expert on standardization using methodical testing and documentation.

Various efforts were also carried out in the area of quality and systems up-gradation
by introducing CE Mark and ISO 9001:2000 certification.

Box 3: CE Labeling
India is an important player in sport related personal protective equipment segment due to the
excellent skill base available in clusters like Jalandhar and Meerut. The demand for soft protective is
showing a good trend and the export figure is showing near 20% growth rate during the recent period.
However, to sustain this growth it was important for the manufacturers to comply with the product
safety standards laid out by the Personal Protective Equipment (PPE) Directive of the European
Union.

The process of gaining such compliance is complex. The cluster firms did not have any information
about the requirements of the directive and there was no BDS support available. The process involves
drawing up a Technical File to show how the product complies with the requirements of the Directives.
Next, the product (type) is tested according to the specifications in the technical file, and, if required, a
model of the product is submitted to a notified body. Subsequently, the manufacturer draws up the
Declaration of Conformity. A file describing the production process is prepared. Finally, , the
manufacturer can affix the labeling of ‘CE Mark” on its products.

The CDA facilitated identification of initial information about the PPE Directive. This was circulated by
the industry association to relevant manufacturers. Subsequently, the CDA facilitated linkages with
SES, Germany which arranged an expert to advise interested firm about the Directives and its
requirements. Seven firms availed services of this expert. The first mission of the expert was
dedicated to creation of awareness amongst the manufacturers about the process required for CE
Marking. Another mission was conceptualized to provide product specific standards with respect to
CE Marking. This mission is scheduled for March 2006. Seven firms are working with the advisor to
prepare for CE Labelling. The industry association is also searching for financial assistance from
Ministry of Commerce for testing of product for CE Marking because such services are not available in
the country.

Presently, 3 firms are willing to set up a composite hockey stick manufacturing facility
with an estimated investment to the tune of Rs. 5 million (approx. USD 100,000).
Two new manufacturing facilities are coming up in the cluster one is being set up
jointly by two firms and another one independently by an entrepreneur. 12 firms have
been introduced to ISO certification and 3 have received the same. Two firms have
set up quality testing laboratory with an investment of about Rs. 400,000 (approx.
USD 10,000) and equivalent annual saving.

7.3 Social Compliance

Social and environmental issues are becoming increasingly important in international

trade. Importers from the economically developed countries are now demanding
minimum social conditions. They do not want their names tagged to “sweat shops” or
child labour. Now there is also growing concern for general labour conditions,
minimum wage payment, health and safety of employees, fair compensation, non-
discrimination, environment friendly technologies, etc. The objective of this
intervention was to build local capacity to address social and environmental
concerns.
While SGFI has done appreciable work in prevention and rehabilitation of child
workers, the from the Jalandhar were increasingly asked by the importers/buyers to
guarantee and prove that their products were made without violation of local laws
pertaining to social or environmental issues. Many brands importers have developed
their own standards/code of conduct (COC) on these issues, which a supplier has to
comply with before he qualifies to supply. While exporters were keen to address
these issues, at times, lack of information on social standards and weak
management systems locally prevented them from meeting the audit requirements.
SGFI understood the challenge and decided to build capacity to help its members in
dealing with the COC audits that they face from buyers.

The programme manager of SGFI underwent an SA 8000:2001 Certified Auditor

Course conducted by Social Accountability International in New Delhi. As a result,
since February 2005, SGFI is offering BDS service to its members for preparation for
COC audits by buyers. At present, six firms are utilizing these services.

7.4 Association Strengthening

The objective of this intervention was to strengthen the industry associations to

continuously address the developmental needs of the cluster. The steps involved
were organising various joint initiatives by the associations and involving various
technical service providers to achieve the same.

As mentioned before, the two main industry associations of the cluster are SGMEA
and AISGI. In the very first year, SGMEA constituted four sub committees to
coordinate activities for the development of specific segments of the industry and
hired professionals to execute various collective initiatives. AISGI took up joint
activities in the areas of marketing and quality upgrading. The CDA largely drove
these initiatives. During the following 18 months, SGMEA moved on to take up
cluster level initiatives in the form of a raw material buyer seller meet and training
programme for workers. Alongside, they also supported small networks of member
firms which were working on collective initiatives of CE-labelling, rubber technology
upgradation, etc. Here SGMEA played the role of a broker to initiate these activities
through an open forum and thereby ensuring transparency in project initiation. Once
a project started, it was then left to the firms of that network and the BDS provider to
take all decisions, which were confidential, for the network members only. SGMEA
was also able to strengthen its secretariat and establish linkages with relevant
support organizations during this period.

The AISGI did organize some technical and export related training programmes but
could not work on long-term development initiatives. SGFI has widened its scope
from elimination of child labour to address other social issues like health and safety,
discrimination and minimum wages. Important achievement in this regard is capacity
building of SGFI secretariat. Their programme manager has undergone SA
8000:2001 Certified Auditor Course conducted by Social Accountability International.

On the whole, the industry associations are now better equipped to address the
emerging challenges and opportunities. However, achievements and internal
capacity of associations vary. The local support institutions like the NIT and RCED-
CLRI are providing customized technical training programmes which are
conceptualised in consultation with the industry. Most significant linkage has been
with Technology Information, Assessment and Forecasting Council (TIFAC). TIFAC
has commissioned a technology gap assessment study for select sports goods
products. The NIT at Jalandhar is the implementing agency. Eminent consultants in
the areas of composites, polymer science and special purpose machines have also
been roped in. TIFAC is interested to start a mission for technology upgradation of
sports goods industry based on specific proposals identified by this study.

8. Results

The results of UNIDO intervention may be summarized in the table below:

Firm level Impact indicators

1. Two firms set up quality testing labs with an investment of about Rs 400,000 each
resulting in equivalent annual savings (USD10,000)
2. Six firms are working on social compliance standards. 12 firms went for ISO 9001
:2000 up-gradation. 3 firms have received certification.
3. A production network of three firms generated a turnover of Rs 10 million (USD
200,000) in it first year, estimated profits Rs 1.5 million (USD 30,000).
4. Two firms are in the process of setting up new facility for manufacturing of
composite hockey sticks with estimated investment of Rs. 9 million (USD
180,000).
5. Two firms participated in an international fair, One of the participants got entry
into exports markets with its first order of Rs 900,000 (USD 18,000).

Cluster Level Impact Indicators

1. 25 new raw material suppliers were introduced to the cluster

2. 2 new training programmes introduced to the cluster
3. Several BDS providers were introduced in the areas of social compliance, football
technology upgradation, technical training, composite technology, etc. to raise
competitiveness.
4. New tools of raw material buyer seller meet introduced to the cluster for efficient
sourcing of raw materials and technology
5. A proposal is being discussed with TIFAC to create a centre of excellence for
sports gods at NIT, which has the potential to become a full-fledged R & D,
testing and training centre.

9. Sustainability

Collective activities are becoming more delivery-oriented in the cluster with rising
contribution and responsibility shouldered by the industry. The cluster is also working
towards developing its own vision and action plan. The industry has networked within
itself and with the relevant support institutions so as to respond to emerging
changes. The sustainability of the cluster will improve as the UNIDO cluster
programme continues, although under a new project.