Equestrian sports: Multiple challenges hold back equipment manufacturers
Cost of production rises phenomenally for Sialkot-based industry.
KARACHI:
Whenever Sialkot city is mentioned, the pictures of hockey sticks, cricket bats and footballs pop into people’s minds. But few people know that the skilled workers of the city also produce export-quality products for some sports that are not commonly played in Pakistan. One such sport is horse riding.
Like other sport products, Sialkot is also the hub of horse riding sport goods, commonly known as equestrian products. Although the industry has successfully overcome every challenge that came its way over the last five decades, it is now fighting the war of survival.
Since the financial crisis struck the developed world in 2007-08, this industry has been facing challenges one after another. One of the worst effects of the financial turmoil was phenomenal fluctuations in international prices of metals and chemicals that were essential ingredients of many industries.
The extraordinary rise in the cost of raw materials like leather, brass, steel and other metals has increased the cost of production of major items.
Though there are dozens of medium and small-sized companies in Sialkot, few are able to manufacture all kinds of accessories despite receiving huge export orders every year. The problems run so high that even the established medium-sized companies are now more relying on smaller accessories that require low investments and give reasonable returns.
“We used to make 500 to 600 saddles a month few years ago, but now are hardly able to make 50 to 100 saddles,” Managing Partner of Flightman Enterprises, Khawaja Kashif Mushtaq, told The Express Tribune.
Mushtaq runs his company with his brother, which was established by their father 44 years ago in 1968.
The price of leather, one of the significant raw materials for manufacturing saddles, has increased phenomenally over the last few years. This has significantly eroded the profits of saddle makers, he said, adding the rising cost of production has compelled the saddle makers to focus only on metal parts of saddles.
It is not difficult to understand why this industry is taking refuge in metal parts of equestrian products. Sialkot is renowned the world over for its surgical and cutlery industry and availability of metal raw material is easy in the city, which makes production of metal parts easy compared to other parts of equestrian products.
Other than the specific problems afflicting the industry, there are some general problems as well, particularly power shortages. “We have enough orders but owing to power shortages, we cannot meet them. Even today, we have a backlog of two months of orders that we are trying to manage,” Mushtaq said.
Mushtaq said his company mainly exports its products to Germany, Spain and the United Kingdom, adding the UK and Argentina are world leaders in making top-class saddles and their accessories.
In recent years, the share of fashion saddles has increased in overall saddle manufacturing mainly because of growing number of women horse riders in the world, he added.
Mushtaq did not mince words in accepting that India has not only improved quality of its equestrian products but also reduced its prices. India has emerged as a big player in recent years.
“For instance, if we export a saddle in 35 euros, Indians will export a better quality product in 25 to 30 euros, making it difficult to compete with them in the international market,” he said.
Prices for beginner saddles start from 70-80 euros while rates for professional saddles range from 300 to 1,000 euros.
Published in The Express Tribune, March 5th, 2012.
Whenever Sialkot city is mentioned, the pictures of hockey sticks, cricket bats and footballs pop into people’s minds. But few people know that the skilled workers of the city also produce export-quality products for some sports that are not commonly played in Pakistan. One such sport is horse riding.
Like other sport products, Sialkot is also the hub of horse riding sport goods, commonly known as equestrian products. Although the industry has successfully overcome every challenge that came its way over the last five decades, it is now fighting the war of survival.
Since the financial crisis struck the developed world in 2007-08, this industry has been facing challenges one after another. One of the worst effects of the financial turmoil was phenomenal fluctuations in international prices of metals and chemicals that were essential ingredients of many industries.
The extraordinary rise in the cost of raw materials like leather, brass, steel and other metals has increased the cost of production of major items.
Though there are dozens of medium and small-sized companies in Sialkot, few are able to manufacture all kinds of accessories despite receiving huge export orders every year. The problems run so high that even the established medium-sized companies are now more relying on smaller accessories that require low investments and give reasonable returns.
“We used to make 500 to 600 saddles a month few years ago, but now are hardly able to make 50 to 100 saddles,” Managing Partner of Flightman Enterprises, Khawaja Kashif Mushtaq, told The Express Tribune.
Mushtaq runs his company with his brother, which was established by their father 44 years ago in 1968.
The price of leather, one of the significant raw materials for manufacturing saddles, has increased phenomenally over the last few years. This has significantly eroded the profits of saddle makers, he said, adding the rising cost of production has compelled the saddle makers to focus only on metal parts of saddles.
It is not difficult to understand why this industry is taking refuge in metal parts of equestrian products. Sialkot is renowned the world over for its surgical and cutlery industry and availability of metal raw material is easy in the city, which makes production of metal parts easy compared to other parts of equestrian products.
Other than the specific problems afflicting the industry, there are some general problems as well, particularly power shortages. “We have enough orders but owing to power shortages, we cannot meet them. Even today, we have a backlog of two months of orders that we are trying to manage,” Mushtaq said.
Mushtaq said his company mainly exports its products to Germany, Spain and the United Kingdom, adding the UK and Argentina are world leaders in making top-class saddles and their accessories.
In recent years, the share of fashion saddles has increased in overall saddle manufacturing mainly because of growing number of women horse riders in the world, he added.
Mushtaq did not mince words in accepting that India has not only improved quality of its equestrian products but also reduced its prices. India has emerged as a big player in recent years.
“For instance, if we export a saddle in 35 euros, Indians will export a better quality product in 25 to 30 euros, making it difficult to compete with them in the international market,” he said.
Prices for beginner saddles start from 70-80 euros while rates for professional saddles range from 300 to 1,000 euros.
Published in The Express Tribune, March 5th, 2012.