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Export cluster concentration - sports goods (Meerut & Jalandhar)

Business Model & Unit Economics · Value-chain position

What it is

Indian sports goods manufacturing is concentrated in two clusters. Meerut has over 35,200 registered units and accounts for roughly 40% of exports; Jalandhar has over 3,000 units; together they represent about 75-80% of domestic output and the industry employs around 500,000 people

Exports ran at about US$523 million in FY24, with the UK, US and Australia the largest destinations

Impact on industries

  • Cluster depth means component supply, skilled labour and finishing capacity sit within a few kilometres, which is why the cost position survives against larger Asian producers
  • The same concentration is the risk - a single-cluster industry carries common exposure to local power, labour and environmental enforcement
  • Exports have been flat around US$520 million for three years, so growth has not come through despite capacity
  • Units are overwhelmingly MSME, which caps the capital available for automation and for the certification premium export segments require

Industries affected