DARE - Because Entrepreneurs Do

Lucrative opportunities in manufacturing, export and import beckon entrepreneurs in this fast-growing segment.

Fusion groups, rock bands, corporate bands, and mall culture have pepped up the popularity of western musical instruments especially in metros and big cities. The opportunity for traders dealing in import and export of western musical instruments

is unfolding in a big way. Industry players believe that India can have a significant share in the international market in the next ten years.

 

Western musical instruments are becoming popular in the domestic market, thanks to the keen interest among children and young adults. With increase in demand, several stores that sell Indian musical instruments now also sell western instruments. Apart from this, exclusive western musical instrument stores are also opening up.

Indian Scene—Western Outlook
Meerut, Uttar Pradesh, is quite popular for producing brass metal musical instruments that make an integral part of the western orchestra. There are a large number of manufacturers in Meerut who produce and export French horn, saxophone, clarinet, oboe, trumpet, euphonium, sousaphone, althorn, cornet, flute, and bagpipe, etc.

There is a huge demand of electronic instruments that are part of western style of music and India can really make the most of this, given its prowess in electronics. While talking to some musical instrument manufacturers in Delhi and Mumbai, a common thought came into fore: Indian manufacturers can make it big in the international market for western musical instruments if they focus on precision and quality. Collaborating with good international brands would be the ideal choice for manufacturers at this stage; and later independently tap the market.

Import of Musical Instruments from China (Rs. Lacs.)
HS Code	2007-08	2008-09 (Apr.-Dec.)
9201	246.76	193.72
9202	474.07	581.55
9205	302.43	989.05
9206	1482.03	1156.03
9207	18.88	6.77
9208	376.86	327.75
9209	18.88	6.77
920210	35.28	67.3
Total	2955.19	3328.94
Source: Ministry of Commerce and Industry, Department of Commerce, www.commerce.nic.in

Some well known international brands are already looking to expand their retail segments in India: Yamaha, Hohner, Casio, Ibanez, and Wittner to name a few. The market is opening up nicely and it is time for the Indian manufacturers and retailers to take the lead.

If Indian manufacturers were to start standardizing their manufacturing processes, they can think to compete China in 10-15 years J P Singh Bina Musical Stores

International Music Trade Fairs
There are two major trade fairs in the world that provide the launch pad for musical instrument manufacturers, importers and exporters. One of them is held in Frankfurt, Germany, named Frankfurt Musikmesse; and the second one is held in China, called the China International Musical Instruments Expo. In the last show held at Frankfurt, around 1,558 exhibitors showcased their instruments, music software, sheet music and accessories. The Chinese expo saw a record number of visitors in 2009, including 8152 foreign visitors, which clearly marks the growth in popularity and appeal of musical instruments across the globe.

These trade fairs provide ample opportunities for traders to make contacts, choose suppliers, test their instruments and start business procedures across the globe. In India, large-scale traders cater to the need of musical instruments export/import rather than individual musical instrument stores or small-scale manufacturers. Musical instrument manufacturers in India are yet to exploit the potential that this segment holds.

Import/Export
International trade of musical instruments has been a bit unsteady in the last couple of years. The figures and statistics available from official sources indicate that import of musical instruments has increased during the last fiscal year while the export of musical instruments is trying to keep the value.

Segment Wise Export and Import
HS Code Segment		Export in 2007-08 (Rs. Lacs.)	Export in (Apr.-Dec.) 2008-09	Import in 2007-08 (Rs. Lacs.)	Import in  (Apr.-Dec.) 2008-09
9201	Pianos including automatic pianos harpsichords	54.22	121.42	569.83	625.82
9202	Other string musical instruments e.g. guitars, violins, harps	214.46	197.65	610.28	695.81
9205	Other wind musical instruments clarinets, trumpets, bagpipes	180.81	374.09	102.58	126.76
9206	Percussion musical instruments	503.73	391.54	610.18	1260.68
9207	Musical instruments, the sound of which is produced, amplified electrically e.g. guitars, accordions	334.34	101.77	2513.06	2895.94
9208	Music boxes, air ground organs and other musical instruments	120.35	195.47	55.95	1534.25
9209	Parts (for example mechanisms for musical boxes) & accessories (for example, chords etc) of musical instruments, metronomes, etc. of all kinds	2892.57	2290.76	644.29	725.17
920210	String musical instruments played with a bow	27.9	9	41.89	68.6
Total		4328.38	3681.7	5148.06	7933.03
Source: Ministry of Commerce and Industry, Department of Commerce, www.commerce.nic.in

Total exports have been worth Rs 36 crore in 2008-09 (till December) while import was worth Rs 79 crore during the period under review. The first table clearly shows that the export of musical instrument in the financial year 2007-08 and 2008-09 (till December) has been almost consistent. Electronically amplified instruments like guitars and accordions have seen some downward trend. String instruments played with a bow have also lost some trade. Almost all the other segments have maintained their export value or somehow improved it.

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