Monday, December 1, 2008

recision in Industry

I invite views on the present status of MSME Sector in view of the deteriorated economic senerio

Saturday, September 13, 2008

Cluster Study Report - Mango Jelly Cluster (East Godavari District)

MANGO JELLY CLUSTERS IN AP

Introduction

India is a major producer of Mango and processed mango products. It accounts for 65% of the world production with a quantum of over 10 million metric tones. India is also a leading exporter of mangos and processed mango products. India out ranks all other countries as an exporter of processed mangos and mango preserves including Mango Jelly to Hongkong. Iraq, Canada, USA and other countries. Andhra Pradesh is the largest producer of mangos(29%) in the country. The areas of concentration of mango groves in the state are Krishna(29%), Khammam(14%), Chittoor(14%), Vizianagaram(11%),West Godavari(10%), East Godavari(9%), Visakhapatnam (7%), and Kadapa(6%). Large quantities of fresh fruit are exported to the Middle east, European and South-East Asian countries.

Mango jelly is a golden yellow, layered and dried mango pulp and is manufactured in the state in traditional open drying method. The product is manufactured and marketed in many costal districts and prominent among the concentration of the industry is at Bhimali in Vizianagaram district and Kakinada in East Godavari district.

Status of the Industry

The Mango Jelly units are mostly micro enterprises and come under village industries category with a capital investment of around Rs.1.00 lakh. The unite are spread with in 20 km radius of the main land marked location and thus formed as clusters at Bhimali and kakinada. It is noteworthy that the clusters provide direct employment to over 5000 people in the season and indirect employment to vendors mostly in Railway Stations across the state and neighboring states. The status of the industry in the two clusters as reported in the SICDP study is given in Table-1

TABLE-1

S.no

Indicators

Bhimali

cluster

Kakinada

Cluster

1

Spread of cluster

20

20

2

No.of units

240

600

3

Aggregate Employment(nos)

1500

3600

4

Aggregate Investment(Rs. Crores)

1.0

4.20

5

Aggregate Production (Tons)

450

2200

6

Aggregate Sales value (Rs. Crores)

1.8

8.0

At present Mango Jelly is produced through conventional drying process involving spreading of Mango pulp in layers one above the other till the desired thickness forms and dried to the stipulated consistency. The cakes are then cut into sizes and packed on polyethylene film. There is need for improving the process technology and hygiene of the product.

It was reported in the cluster study that the key issues for interventions are primitive pulping and drying process, poor in-process hygiene, highly decentralized operations, high dependence on middlemen for marketing of the product and low skills of workers.

Cluster Development Initiatives

The Ministry of Micro, Small& Medium Enterprises (formerly min. of SSI) Govt. of India has laid special emphasis for development of clusters across the country on a holistic approach encompassing marketing, exports, skill development, setting up of common facility centers, and technology up gradation, The Mango jelly clusters of Bhimali and Kakinada are among them and were taken up by APITCO through Govt. of Andhra Pradesh during 2003-04.

Cluster Level Interventions and The results.

The cluster diagnosis studies conducted identified certain key areas as stated earlier and initiated interventions, the major among them are as under:

· Demonstration of improved pulping and drying techniques

· Organising sensitization programmes on in-process hygein

· Training in product quality and packaging

· Organising buyer-seller meets

· Conducting skill development training to improve skills of workers

The implementation of these interventions gave fruitful results and shown signs of improvement in the product quality and productivity in the enterprises. Prominent among the interventions are installation of mechanical pulpers (57 units), installation of pasteurizers (50 units),improvement in in-process hygiene, introduction of solar dryers, training of workers in better production, drying techniques, packaging and marketing practices, introduction of food grade tools & implements, quality control methods etc. These interventions have shown positive results. The impact can be seen from the following Table-2

TABLE-2

S.No

Indicators

Bhimali

Cluster

Kakinada

Cluster

1

Spread of Cluster

20 km

20 km

2

Total Units

240 (240)*

790 (600)*

3

Aggregate Employment(Nos)

1500 (1500)*

4500 (3600)*

4

Aggregate Investment(Rs. Crores)

1.95 (1.0)*

6.5 (4.20)*

5

Aggregate Production(Tons)

650 (450)*

4900 (2200)*

6

Aggregate Sales(Rs. Crores)

3.1 (1.8)*

14.8 (8.0)*

· Figures in Brackets indicate those prior to interventions.

It is pertinent to mention that the productivity has considerably improved after the implementation of the suggested interventions. As a result of the signs of improvements, Development Commissioner (MSME), Ministry of MSME, Govt of India, sanctioned for the establishment of a Common facility Centre in Mango Jelly Cluster at Bhimali, Vizianagaram district.

Conclusion

It is seen that the Govt. initiatives for the sustained growth and development proved encouraging results and benefited the industry. In a cluster approach the individual enterprises, commonly known as cluster actors play a vital role. Their cooperation and team work as an association will go a long way in expanding the business multifold. The cluster actors should now act positively to get better results.

Acknowledgment:

I sincerely acknowledge DC(MSME) and APITCO for using the cluster reports as references

Wednesday, September 3, 2008

FIBRE GLASS REINFORCED PLASTICS CLUSTER -HYDERBAD

INTRODUCTION

FRP – Fibre Reinforced Polymer was first developed in U.K. by M/s. Pilkington about 80 years ago. It was a composite material containing man-made Fibre (Glass, Kevlar, Carbon etc.) and a binding material. The binding material may be Polymer such as Thermosets (Polyesters, Phenolics, Epoxies, Polymides, etc.) or Thermoplastics (Peek, PPd, PS, etc.). The combination is such that there is sufficient aspect ratio (length to thickness) to provide a discernable reinforcing function in direction or more directions. FRP Composite may also contain filters, additives and core materials that modify and enhance the properties of the final product. The constituent elements in a composite retain their identities (they do not dissolve or merge completely into each other) and provide a host of benefits ideal for structural applications. FRP is also called a wonder material as it has high strength with light weight. They can be designed to provide a wide range of mechanical properties including tensile, flexural, impact and compressive strength. They are 1/5th of the weight of steel. They have good creep properties i.e. permanent deflection under long-term loading. They can also withstand higher temperatures than plastics. Properly designed and formulated, composites can offer fire resistance performance approaching that of metals. The most important property is resistance to environmental factors. Composites display excellent resistance to corrosive effects freeze thaw. They are not attacked by galvanic corrosion and have low water absorption, resist the destructive expansion of freezing water etc.. FRP Composite structures don’t whither and filter out ultra-violet light. They do not rust or corrode and can be formulated to provide long term resistance to nearly every chemical and temperature environment.

The applications of the material are as follows:

1) Fibre Glass Reinforced Plastic Components
2) FRP Anti-Corrosive Coatings
3) FRP Linings
4) FRP Sheets
5) FRP Laminates
6) FRP Furniture
7) FRP Fixtures
8) FRP Body covers for Instruments, motors etc.,
9) FRP Equipment
10) FRP Washing Machines
11) FRP Air Coolers
12) FRP Radomes
13) FRP Antennae Reflectors
14) FRP Floats
15) FRP Buoys
16) FRP Shells
17) FRP Shelters
18) FRP Containers
19) FRP Gratings
20) FRP Ladders
21) FRP Platforms
22) FRP Pallets
23) Boat Building
24) A host of other items
INDUSTRY STATUS and Cluster in Hyderabad

The basic process of manufacturing is hand-laying process. A mould is prepared and fibre and resin are filled in the mould layer after layer by hand. This process is tedious and slow and superior quality composites cannot be produced. This is generally called as brush and bucket technology. In advanced countries like Japan, America, China, Europe, the process has undergone a sea change. The process has been mechanized. While a rich expertise exists in a few national centers of excellence in India, especially for Aerospace for limited consumption, the knowledge-flow to the industry has not come up to the desired level from these agencies.. The applications were mostly confined to brush and bucket level fraught with obvious poor product quality, thus restricting the growth of composite usage and large-scale consumption in India. The per Capita usage in USA is 50 Kgs per annum. and India consumes only 100 gms. and the senerio in Andhra Pradesh is mere 30 gms. . There are about 3000 micro and small enterprises in the country out of which 300 are in A.P. with equal number in unorganized sector.

The FRP activity came to India in 1960 and to A.P. in the year 1970. The activity picked-up its pace with the advent of pharmaceutical, chemical and air coolers industries in Hyderabad. Due to high demand and availability of raw materials suppliers in Hyderabad, many FRP Industries came up, thus become a Cluster. The industries could not survive competition among themselves and from Plastic products manufacturing enterprises. The limited application in chemical and pharmaceutical companies did not favour growth of FRP industries. Those diversified into new application survived

Though there are 300 Units in A.P., about 100 of them are located in Hyderabad. 50% of these are micro enterprises and unorganized and the remaining are small scale enterprises registered with DIC.
Cluster Scenario:

The Cluster is spread in three Industrial Estates, namely, Jeedimetla, Balanagar and Cherlapally in Hyderabad. These Industrial Estates have good infrastructure facilities.

FRP is usually an enclosure, casing or sheet and they do not have sub-components. Hence all Units are considered as manufacturers enterprises. There are no assemblers or components manufacturers in this sector. The Units can be classified as mechanized and hand-laying. The cluster at Hyderabad can be classified as hand-laying type of industry as far as the technology is concerned.

As said earlier there are 300 Nos. of Units in A.P of which, 100 are located in Hyderabad and remaining are in Visakhapatnam and Vijayawada and other parts of the state. Out of 100 Units in Hyderabad, about 60 Units have good infrastructure and good turnover. These include raw material suppliers also. The remaining 40% are micro and cottage type enterprises operating from non-industrial area locations in Hyderabad.

The Cluster Manufactures FRP Roofing Sheets, Linings, Laminates, Furniture, Doors, Washing Machines, Air Coolers, Axial Flow Fans, Boats, Tanks, Chemical Process Equipments, Gratings, Ladders, Platforms and host of other products. The industry employs about 5,000 persons directly and 10,000 persons indirectly. The turnover of cluster is about Rs.100 crores in 2005-06

BACKWARD & FORWARD LINKAGES

The Cluster is having good backward linkages, viz., raw material suppliers. In fact the raw material suppliers are the drivers of these Cluster. One of the RM supplier Units is a multinational, it has access to latest developments in the field which is an advantage to the cluster. The relationship among the cluster actors is also good because of proactive presence of the association. This is not seen as far as the forward linkages are concerned. The cluster do not have good market linkages. There is need for formulation of strategic marketing policies as a collective effort to enhance the growth of the sector. At present the individual units do much of their business through personal contacts. A big market is untapped in entertainment field, pharmaceuticals, construction, automotive, railways and latest technology field (Aerospace, Defense, Non-Corrosive Electrical/Telephone Poles, etc.). There is need for a good sales force to identify the potential market and look for new areas. It is essential to organise workshops and consumer awareness activities.

Social Capital and Linkages with Support Institutions

The social capital in the Cluster is high, thanks to the presence of strong Industry Association. Regular exchanges take place among them and there is flow of information. There is also good exchange between cluster members and support institutions such as I.I.T., Mumbai, TIFAC, IIT, Chennai and FRP Institute, Chennai, and Developmental agencies. Finance Institutes are also having their presence. Though information is exchanging between members and support institutes is good, nothing concrete has taken place in terms of technology development, market growth etc,. There is a need to convert the exchanges into reality.

BUSINESS DEVELOPMENT SERVICE(BDS) PROVIDERS

The cluster is having BDS Providers. Even the Support Institutions like TIFAC, IITS may also act as BDS.

Value Chain Analysis:
This issue is not having impact on the Cluster as the raw material is reaching the user through approved dealer or directly. Similarly the product is reaching the user directly. Hardly anywhere in the cycle value is added.
Areas of Concern

Entry barriers are low in this Cluster hence many fly -by-night enterprises come and vitiate the field. This would affect the regular players. Hence there is a need to educate consumers on the advantage of standard products. Today the consumers hardly know of standards and look for low cot products. If quality standards are maintained, consumers get benefited and the Units also make good marketing.
There is a need to identify new technologies, processes of manufacture and product profile to make member units progressive and to contribute exports. The cluster is facing delayed payment syndrome because of its inability to grow and take higher risks. In short there is no product range of manufacture in any unit. Most of the manufacture tailor made products. In order to have a sustained growth the cluster should go for identification of new products and export markets

CLUSTER VISION
Making Cluster a product based, mechanize the process, establish training centre and enter into export of high tech and regular products in next three years.

INTERVENSIONS REQUIRED

1. A regular Association Office with Information Centre-cum-Sub Contract Exchange.
2. Increase the interactions between members and finance institutions for investment, factoring services and MCGF Schemes
3. Establish Training Centre
4. Establishing Common Facility Centre for addressing Pollution problem.
5. Increase awareness about FRP Products application and standards to common man.
6. Increase domestic and export market.
7. Establishing common testing and modern production centre to simulate modernization.
8. Introduce quality management systems, product certification and lean/best manufacturing systems.

*****