India has seen a steep rise in the field of sports in past few decades. Apart from the most famous sport, cricket, with time, people have started watching as well as giving importance to other sports as well. Football received great attention in the past two decades. A number of youth came forward in support of football and Indian Football Team is doing really well as of now. Moreover, India has started organizing domestic football leagues too, where a number of teams from different states come forward to play. Apart from these, there has been a great growth in the number of viewers of other sports. So, to sum it all up, we can say, sports industry has been rapidly growing in India and will soon reach its peak!
Along with this growth, there comes a great business idea of establishing your own sports goods manufacturing company. It may sound difficult and hard; but it’s worth the struggle. If your company gets recognized well, you may earn millions of rupees.
India is the largest producer of football and other inflated balls in the market. The Indian Sports Goods manufacturing industry has seen as tremendous growth since 1947. Some products, namely- Cricket bat, ball, football and nets have also gained the popularity all over the world!
United Kingdom is one of the biggest importers of sports good manufactured in India, which is followed by USA, Germany, France and Australia.
Some of the major items exported from India include inflatable balls, hockey sticks and balls, cricket bats and balls, boxing equipment, fishing equipment, indoor games such as- Carrom, Chess boards and some protective items such as- abdominal guard, etc.
The Indian sports good manufacturing industry is divided in many clusters spread across the entire nation. The best three clusters are located in- Meerut, Jalandhar and Kashmir.
Performance in Exporting Sports Goods
According to Sports Good Export Promotion Council (SGEPC) total export value of Indian sports industry is estimated to be about Rs. 586 crores. This shows on year growth rate of 13%, which is really good! The top five performers which constituted for more than 60% of the total export value are hammocks, inflatable balls, boxing equipment, cricket bats and general exercising equipment.
This performance was really great and is bound to improve in near future. The quality of goods manufactured in India is really great, whose proof can be seen if we look at the performance in exporting Sports Goods manufactured in India. This itself makes the market of manufacturing sports goods really a great business option in India.
Prerequisites of establishing a Sports Goods Manufacturing Company
- Business Plan– The first and foremost requirement to establish a company in any sector is to have a proper business plan and a vision. You should have a clear idea about the steps you’ll follow in order to make your business successful.
You need to be clear about the sporting equipment your company will focus on. For this, you will need to scan the market thoroughly, you’ll have to look at the sports and athletic events requiring equipment which are in great demand and are bound to have a great fan base in the near future. Apart from these, you need to look at the international scenario too. You need to look at the sports that are gaining popularity on an international level and are played or watched by all! Then, you need to find the appropriate place to get your goods manufactured and exported.
- Investment– You need to put in a lot of investment in order to set up sports goods manufacturing company. Though the investment is large, the growth and the amount of profit that will be earned will easily surpass all the difficulties and hardships you had to face! If you cannot afford to invest this huge amount all by yourself, you can look up for a partner or maybe investors. Whatever option you choose, you need to stick to it throughout.
- Setting up a Factory– You need to set up a factory in an industrial area too! You need to hire labors to work in the factory too.
- Sourcing– Finding appropriate material at the cheapest rate without compromising on the quality is another important aspect which requires you to invest a lot of time and dedication. Once you find the appropriate source of raw materials, you can easily start manufacturing your goods.
- Pricing– Pricing your brand at a reasonable price initially will give a boost to your business. This is so because you will have to compete against top brands all around the globe such as- Nike, Puma, Adidas, Reebok, etc. So, a moderate price for a really great sport equipment is a deal that no sportsperson will miss.
- Marketing and Sales– In order to stand against the well-established giants in the industry, you need to advertise your products to great extent. You will have to pay athletes to promote your brand, use you brand’s equipment. Apart from this, you need to hire athletes and famous sportspersons to advertise your brand, you will have to put up a proper commercial on the national television initially, when the odds are in your favor, you can step into the international market too!
- Contacting Sports Equipment Stores– This is another essential part, you need to contact various sports equipment stores, which will buy the goods from you and sell them to the customers. You need to provide these stores with great offers and a good profit margin if you really want to expand your business.
So, these were all the prerequisites you need before opening a sports goods manufacturing business. Apart from these, you will need a few permissions from the Government too. The basic formalities are as follows (You need to complete specific formalities too):-
- Setup a legal entity – Firm/LLP./Pvt. Ltd.
- VAT/CST Registration from the State government.
- Shop act license for your factory.
- Excise Registration.
- Service Tax Registration.