Need Strict Enforcement On Helmet Usage: R. Kapur, MD, Steelbird
What is the size and growth of the industry?
The size of the two-wheeler helmets market in India is projected to reach $882.41 million by the year 2029, according to Maximize Market Research. This estimation considers a CAGR of 7.1% during the forecast period. These figures indicate a significant growth trend in the industry, reflecting an increasing demand for two-wheeler helmets and a positive market outlook in the coming years.
We understand your own company Steelbird Helmet is also on an expansion spree.Do please share some details?
We are undergoing expansion in all our existing plants in Baddi, Himachal Pradesh so as to increase our installed capacity from 30,000 helmets per day to 50,000 helmets per day with investment of Rs 105 Crore by Diwali 2024. Further, due to the growing market demand we are planning to establish a new plant in Hosur, Tamil Nadu with investment of Rs 250 crore. In addition, we are planning to expand our network base from 200 outlets to 1000 outlets by 2025.
As the president of Helmet Manufacturing Association of India, what are the industry challenges before you?
Though helmet usage has increased, there's still a lack of awareness on the importance of choosing the right helmet for head protection and impact absorption. As a result, people are buying unsuitable helmets. The market is surrounded by counterfeit and substandard products with a lack of proper safety certificates. This causes a serious threat to consumers as these helmets are not accidents prone.
The developed markets spend huge amount on helmet innovation and technology as compared to the Indian helmet industry where only few companies are focusing on innovation and otherwise market is still largely dominated by traditional manufacturing techniques and designs.
What about current regulations and their enforcement?
We need strict government regulations and enforcement on helmet usage as consumers are often flouting the rules, especially in rural areas, further compromising on safety. More than 200 helmet manufacturers with ISI Helmet manufacturing licenses are spread like mushroom in India & irony is that they don’t have their own mould’s, machineries, test laboratories etc. These manufacturers are basically assemblers and engaged in buying and assembling substandard helmet shell and visors from third party manufacturers. The material used to manufacture these substandard helmet shells and visors is recycled low grade plastics. These substandard fake helmets are sold for Rs 120 per helmet without box and with ISI mark. The network of these substandard helmet manufacturers is spread across all over India and the biggest pity is that showroom owners of two wheelers are indulging in sales of these substandard helmets with sole motive of earning high profit margins. These helmets which costs Rs 120 is sold at exorbitant price between Rs 700 to Rs. 1000. All these big showrooms are owned by well to do individuals with no lack of money. This entire network from manufacturers, distributors, showroom owners, small shop keepers are playing with human lives. I request with the folded hands to this entire network not to produce and sell these substandard fake helmets because selling these kinds of helmets is just like fake medicine.
What policy interventions are you looking for?
In order to reduce the road accidents and fatalities we need robust policy interventions such as compulsory implementation of Section 138 (4) (f) of the Central Motor Vehicles Rule (CMVR). As per this rule, at the time of purchase of the two wheeler, the manufacturer of the two wheeler shall supply a protective headgear conforming to specifications prescribed by the Bureau of Indian Standards under the Bureau of Indian Standards Act. Therefore, the two wheeler manufacturer must supply minimum 2 BIS compliant helmets each for a driver and the pillion rider. This rule should be enforced across India in complete spirit.
Reduction of GST from current 18 per cent to 5 per cent so as to make the helmet affordable for masses. Implementation of strict Indian Standards (ISI) for helmets and regularly conduct market surveillance to curb counterfeiting. And expediting the setting up of new testing laboratories by authorizing reputed institutions like IITs, Engineering Colleges, QCI and NGOs, ensuring that safer helmets reach the market promptly. At least one engineering college in each state should be equipped with a Helmet Testing Laboratory so that state wise monitoring of helmets can also be done.
