Mukund Bhogale by T7l32s

VIEWS: 7 PAGES: 33

									    MSME in
  Maharashtra –
Benefits of Cluster
  Development
       History of Clusters
• Be it Europe or Asia, Cluster approach
  has always helped SME.
• Knife manufacturer’s cluster – Germany
• Watch manufacturer’s cluster – Swiss
• CRDI Valve manufacturer’s cluster –
  France
• Garment manufacturer’s cluster – India
  Inherent Features of Cluster
• A group of companies in similar
  domain & Interdependence hence
  common pool of facilities
• Helps to overcome limitations of
  small units
• Leads to growth of business and
  reputation
  Govt Participation in Cluster
• Japan is pioneer of the concept
• India formulated the scheme in
  2002 - 03
BACK GROUND : INDUSTRIAL SCENARIO

• The growth rate in the
  manufacturing sector fell from
  14.1 % in 1995-96 to 2.8% in
  2001-02.
• In fact, growth rate during 2001-
  02 was the lowest in last ten
  years.
WHY THIS SITUATION …
• The factor inhibiting growth and
  competitiveness of industries is
  inadequate industrial
  infrastructure
• The delivered quality of
  infrastructure service is low and
  erratic.
TYPES OF SCHEMES FOR INDUSTIRES
• Industrial development strategy adopted
  so far has relied upon fiscal incentives,
  investment subsidies, interest rate
  concessions and reliance on public
  sector industries.
• However, these strategic measures had
  their own limitations in terms of
  providing facilities for competitive
  environment in the industrial sector.
        Growth Challenges
(As informed by SME vendor units)
• Do not get shortlisted
• Get small numbers or low volume products
• Hassles during development causes issues in
  quality and meeting deadlines

               It is mainly due to:
 Lack of state of the art development facilities
                 and infrastructure
THE SOLUTION: IIUS SCHEME
• The objective of the IIU scheme is to
  enhance international
  competitiveness of the domestic
  industry by providing quality
  infrastructure.
SCOPE OF THE IIU SCHEME

    •   Physical Infrastructure
    •   Information and Communications Technology
        (ICT)Infrastructure
    •   R&D Infrastructure
    •   Quality Certification & Benchmarking Centre
    •   Common Facilities Centre
    •   Information dispersal/International Marketing
        Infrastructure
    •   ICT-induction & process re-engineering &
        management consultancy service centre.
          Financial Assistance
             by Govt in IIUS
•   Project cost         – 80 Cr
•   Central Govt         – 60 Cr (75%)
•   State / local govt   – 8 Cr (10%)
•   Industry             – 12 Cr (15%)
Post 2002 Scenario
How to leverage advantages of
 Automobile and Engineering
          business?
Factors influencing success of Auto sector in international market
     Bostan Cunsulting Group aanalysis for India business




           Move up the value chain
BCG Enablers Vs benefits of cluster
•   Design Capabilities      -    Cluster
•   Technologies             -    Cluster
•   Supply Chain             -    Cluster
•   Human resource efficiency -   Cluster
•   Measurement & Testing -       Cluster
•   Mfg, Assembly facilities -    Unit
•   Technical knowledge      -    Unit, Cluster
•   Understand end user      -    Unit (CBI)
Assessment of Marathwada based
 industries and bench mark with
           BCG MODEL
Auto and Engineering unit statistics
           Total units
Type       in region         %
Small             1188         92%
Medium               61         5%
Large                16         1%
Others               20         2%
Total             1285        100%
    Categories of units as per BCG

         No of              Genera Special
Type     Units       %      l Comp Comp Module System

Small        75      59%        61    10     2      2
Mediu
m            39      30%         2    24    13

Large        12       9%         1     2     1      8

Others           2    2%               2

Total       128      100%       64    38    16    10

%         100%                50%    30%   13%    8%
Potential of Aurangabad
The OEMs Present in Aurangabad
           Neighboring OEMS …
Auto OEMs Present in Pune and Nashik and supplied from Aurangabad
Marathwada also Caters to…
Marathwada also Caters to…
                                                                                                Location Scoring

                             Aurangabad – An Emerging
                                    Destination
Attractiveness Assessment – Aurangabad
                                                                                               IT          BPO
                                                                   Assessment Parameters
                                                                                             Score         Score

   High                                                            Government Support(1)             5.2
                        Mature                 Attractive
                                                                   Business Environment              5.5
Attractiveness




                                                                   Skill Set Assessment       4.0           3.7
Location




                                                                   Infrastructure                    5.0

                                                                   Social & Living
                                                                                                     6.4
                                                                   Environment
                 Needs development        ‘Explore focused
                 support                  operations’              Location Attractiveness
     Low                                                           Score
                                                                                              4.8           4.7
                 High            Cost of Operations          Low
                                                                   Cost Advantage(2)                34%
Marathwada Auto Cluster
                      Vision
          We are committed to turnaround
                  facilities
                  Infrastructure &
                  mindset
   of Marathwada based Auto &Engineering units
               for Global competitiveness,
               through manufacturing excellence &
               to achieve sustainable growth”.
             We shall achieve this through
Power of collective wisdom and result oriented efforts.
                   Means of Finance

S. No                  Sources                 Amount % Share
                                               (Rs Lacs)

 1      Equity from Industry Stakeholders      1406.00   16.93%


 2      Grant from Government of Maharashtra    900.00   10.84%


 3      Grant under IIUS                       6000.00   72.23%


                           Total               8306.00   100.00%




                                       28
      Investment Categories of Auto
                 Cluster
Sr     Investment category
  1    Design
  2    Engineering Library
  3    Tool Room
  4    Proto Shop
  5    Measurement & testing
  6    HRD
  7    RM Bank, Cutting & Slitting
Proposed Machines and Technology




  Co-ordinate Measuring        Rapid Prototype
         Machine                  Machine




  Vacuum Furnace Tech
                          30         5 Axis VMC
Proposed Machines and Technology




    CNC 3 Axis VMC                CNC 3D Laser Cutting




    Roundness Measuring        Universal measuring machine
         Machine
                          31
  Impact of state of the art facilities on growth
(possible turnover of SME ine next 5 years) Rs Cr
20000

                                                             17960
18000


16000
                                                14440
14000                                                             13845

                                   11984             12451
12000
                                        11202
                       10265
10000                      10084                                          Possible
            9081
                9081                                                      trend
 8000


 6000


 4000


 2000


    0
        1    2          3           4            5            6
                     Projections for 10 years
1200



1000



800



600
                                                                                                             Surplus after interest
                                                                                                             Total Revenue
400
                                                                                                             Total operating cost + interest
                                                                                                 282.50705
                                                                                      254.2457               Cumulative surplus after interest
                                                                          206.26355
200                                                            158.2814
                                                    88.38725
                                   63.16295 73.2731
                         2.97975
   0
       1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year
       -65.823 -74.645625

-200



-400
Thank you

								
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