subject: Amritsar Chess Board Makers Game For Diversification [print this page] Sluggish demand leading to decline in overall sales and contraction of export orders for the last 1 year has compelled chess board manufacturers in Amritsar to look beyond their domain and diversify their product base. A large number of SME chess manufacturers in the city have begun exploring avenues, which can yield good return on investments (RoIs) and help them to boost their flagging sales.
While some small-scale chess board makers are focusing on introducing new wooden board-based games, a few others are taking the diversification route, looking for opportunities in alternative segments in a bidto revive their plunging bottom lines.
Branching out
The downward trend in the export market as well as increasing realisation among SME chess manufacturers to expand their product portfolio is prompting units to diversify. Shrinking demand in the US, the UK, Germany, Italy, France, Spain, Australia and Canada further prompted small-scale chess board exporters to look beyond traditional markets and diversify.
Recessionary pressures resulted in lower export growth for SME chess board manufacturers in Amritsar. Margins of chess board makers shrunk drastically on account of low demand. Furthermore, the recent appreciation of rupee against the dollar also added to their woes. In order to recover their losses, chess board makers are thinking it wise to expand their product lines, said Niranjan Singh, proprietor of Surjit Kirpan factory, a small-sized chess board manufacturer in Amritsar.
While some Amritsar-based chess board manufacturers are cutting down on output in keeping with the poor demand, some others are downsizing their staff due to the fall in demand.
Several small-scale chess board makers in Amritsar have shut shops in the past 1 year, thereby leaving craftsmen jobless and impeding the growth of the sports goods manufacturing sector. We hope that the attempt made by the existing players to diversify will bring the industry back on track, said D Kapoor, spokesperson of N Singh & Company, a small-sized manufacturer and exporter of chess sets and back games in Amritsar.
Given the market dynamics, a few Amritsar-based chess set manufacturers are planning to shift a part of their production facilities to produce games such as backgammon, while others are charting out diversification course to tide over the crisis.
by: David Parks
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