TECHNOLOGY INTERVENTIONS

TECHNOLOGY INTERVENTIONS
IN
MICRO & SMALL ENTERPRISES




INTRODUCTION

Technological innovation is essentially a fundamental learning process. A developing country like India has to 'Catch up' with the developed countries. Micro & Small Enterprises are major contributors to the Indian economy in terms of employment, social development and GDP Growth.

There are about 13.32 Million MSMEs providing employment to 42.2 Million persons in the country producing over 8000 products. The product ranges vary from traditional items like Pickles to most sophisticated products and components used in Nuclear, Aviation and Space sectors. The sector contributes 45% share in manufacturing output, 40% of exports and 8% of GDP.(Statistics from DC(MSME)

In Andhra Pradesh, as on 31.3.2005, there are 1, 46,481 units in the MSE sector providing employment to 13, 22,461 persons. The maximum numbers of units are found to be engaged in the Food-Processing sector.Repairing sectors and Metals products industry shares the 2nd and 3rd slots respectively. Investment wise, the maximum investment is seen in food processing sector, as also the employment potential.

PRESENT STATUS OF MSEs IN ANDHRA PRADESH : Industrial clusters

Micro & Small Enterprise Clusters grew in some pockets all over the State. Depending on the local availability of resources, be it raw materials, skilled labor or based on local demand, these Clusters have sprung up and have grown to become important industrial centers. The prominent clusters in AP are:


1. Cashew Processing: Palasa, Srikakulam & Vetapalem, Prakasam
2. Mango Jelly: East Godavari &Vizianagaram districts.
3. Fruit Canning: Chittoor and Krishna districts.
4. Biscuits and Confectionery: Hyderabad, Tenali, Guntur Dt.
5. Marine Foods: Visakhapatnam and Kakinada (EG Dt.)
6. Brass Metal: Budithi, Srikakulam dt. (For bronze, bell metal and brass), Srikalahasti (Chittoor), Agraharam (West Godavari Dt.), Tandur (RR Dt.), Chundur (Nalgonda Dt.) and Siddipet (Medak Dt.)
7. Cast Brass Hardware : Pembarthy (Warangal) and Lal Bazaar of Hyderabad
8. Aluminium Utensils: Rajahmundry (East Godavari Dt.)
9. Steel Furniture: Chunduru (Nalgonda), Hyderabad, Ranga Reddy and Vijayawada
10. Automobile Industry: Vijayawada, Kakinada
11. Agricultural Implements : Gudivada (Krishna) and Ramachandrapuram (East Godavari)
12. Pneumatic Hammers, Drill Bits, Drilling Equipments - Twin cities (Hyderabad and Secunderabad).
13. Hand Pumpsets - Hyderabad.
14. Water Coolers, Freezers - Hyderabad.
15. Wooden Furniture: Mancherial (Adilabad)
16. Steel Re-rolling Mills : Ranga Reddy district, Hyderabad, Medak and Ananthapur
17. Balancing Beams : Dowleswaram (East Godavari)
18. Wooden Toys : Kondapalli (Krishna Dt.), Srikalahasti and Varipenta of Cuddapah district
19. Ceiling Fans: Balanagar (Hyderabad)
20. Distribution Transformers: Jeedimetla and Patancheru at Hyderabad
21. Power supplies, Battery chargers, ASCR conductors: Electronic Complex, Kushaiguda, Ranga Reddy district.
22. Sago Rice : East Godavari Dt.
23. Clay Graphite Crucible :Rajahmundry
24. Granite Processing Industry: Chittoor, Prakasam& Khammam.
25. Pickle Jar Manufacturing Industry : Rajahmundry
26. Refractory Industry : East & West Godavari Hyderabad region.
27. Lime Industry: Dronachalam, Kurnool Dt.; Piduguralla, Guntur Dt.
28. Slate Industry: Markapur, Prakasam district.

The MSE sector in the state has more or less grown up in a traditional way with limited resources of Technology, Finance and Market support.

In many of the MSEs /Clusters the key to survival was incremental innovation and cross-fertilization of technology from one sector to the other.


CONSTRAINTS FOR SLOW TECHNOLOGICAL GROWTH

The main factors are:

• Non-adequate technical and financial resources to create in-house R&D facilities to develop new technologies.
• High cost of import of technologies.
• Lack of coordination between the R&D labs, Universities and Industry.
• The mismatch between the R&D level technologies and application of technology in the industrial level leading to a "no takers" stage in many cases.
• Slower credit delivery by Financial Institutions for modernization.
• Lack of self-motivation among the entrepreneurs to introduce innovative methods in their enterprises.
• Information gap on various inputs like technology, finance, human resources and market.
• No awareness on IPRs


TECHNOLOGY NEEDS OF MSEs

Technology up gradation is an integration of various inputs. The following are the price and non-price inputs.

TECHNOLOGICAL NEEDS

• Technology Acquisition
• Technology Absorption/Adaptation
• Testing/Quality Certification
• Environment control
• Productivity Improvement
• Energy Conservation

INFORMATION NEEDS

• Raw Materials/Components/sub Assemblies
• Plant & Machinery
• Technology Sources
• Technology Needs/New Developments
• IPR Awareness

HRD NEEDS

• Training
• Development of new skills
• Inventory Management
• Technology Management
• Production Management