Docstoc

Diagnostic and Action Plan Okhla -RMG Faridabad

Document Sample
Diagnostic and Action Plan Okhla -RMG Faridabad Powered By Docstoc
					City Cluster Economic Development (CCED)
             India Case Study




            SPMS-NIUA-APDS
               Supported by ADB
              WUF 5: Rio, Brazil
                March 2010
           Objectives of CCED
• Assess spatial and economic characteristics and
  explain patterns
• Identify key challenges
• Explore good practices and innovative solutions
• Develop innovative strategies
• Disseminate knowledge
NCR
Total Area -30242 Sq Kms
Total population -37 Million (2001)


       Administrative units in CNCR
Competitive Business Clusters and Development
            Strategy in NCR India



                                                                   Pre-
                Profiling   Identifica               Busines
                                         Diagnosti              feasibility
 Profiling of       of        tion of                 s Plans
                                            c of                    of
  important     economic    important                   for
                                         Selected               important
   cities in    Developm     Business                selected
                                         Business               projects in
    India         ent in     Clusters                business
                                          clusters               business
                  NCR        in NCR                  clusters
                                                                 clusters
                                          60.0           Employment- Concentration, Growth & Size Delhi
                                                                                                    Retail Trade LQ 13.73

                                          40.0 Finance,insurance,real
                                               estate,business services LQ 1.12
Relative Growth 1998 - 2005




                                          20.0
                                                                           Community & other
                                                                           services LQ 0.38

                                            0.0
                  -4.00          -2.00            0.00     2.00           4.00        6.00        8.00       10.00          12.00   14.00   16.00


                                                                                  Manufacturing LQ 1.43
                                          -20.0


                      Construction
                      LQ 0.12                                                       Transport,storage &
                                          -40.0
                                                                                    communication LQ 0.51



                                          -60.0




                                          -80.0
                                                                  Electricity,Gas,Water LQ 0.24


                                         -100.0                                   Location Quotient 2005
         Manufacturing Concentration - NCR
                                       NCT     Gurgaon Fridabad   Sonipat Ghaziabad
Food Products, beverages &Tobacco
             Products                  low       low     low       low       low
              Textiles                 high      low     low       low       low
     Leather & leather products        low       low    medium     low       low
Basic Chemical & chemical products
                                       low       low     low      medium    high
 Rubber,plastic, petroleum and coal
                pdts                   low      high     high      low     medium
  Other non-metallic mineral pdts
                                       low      high     low       high     low
  Basic metals & metal products       medium    low      high      low      high
     Machinery & Equipment             high     high     high      high     high
   Transport equipment & parts         high     high     high      high     high
  Other manufacturing industries
                                       low     medium    high      high    medium
Four Important Manufacturing Industries
               For NCR

•   Textiles- Readymade garments
•   Auto Components
•   General Engineering
•   IT Enabled Services
Diagnostic of Selected Business Clusters
              National Sector Background
Products
Machinery & instruments, castings, forgings,      Demand Creation is mainly from
fasteners, electronic goods and project           Infrastructure and process
exports. The engineering sector employs over      Industry
4 million skilled and semi-skilled workers

Heavy and Light Engineering
The sector can be categorized into Heavy          The industry is dominated by
Engineering and Light Engineering segments.       large companies without with out
Heavy engineering constitutes over 80 per         foreign Collaboration.
cent of the total industry, while light
engineering contributes the rest.
The heavy engineering industry includes
capital goods/machinery and equipment, and        Small sector is dominated by
transport equipment. The light engineering        vendors to medium and large
industry includes items like castings, forgings   players in the heavy engineering
and fasteners and sophisticated
microprocessor-based process control              industry
equipment and diagnostic medical
instruments
     Faridabad General Engineering
    Demand Factors- Faridabad                         Factor Conditions - Faridabad
                                                                   Labour
                    Markets                                     3.00
                 2.25
                 2.20 2.15                                      2.00
                 2.15
                 2.10
                                                                1.00
                                                    Workers
                 2.05                              Conditions   0.00             Infrastructure
                           2.12
 Business
        2.23                      New Products
Environment

                                                                  Resources

Firm strategy and Rivalry -Faridabad                   Realted Support Institutions-
                    Structure
                  2.00                                          Faridabad
                  1.50                                             Supply
                  1.00                                             Chains
                                                                2.00
                  0.50
                  0.00                                          1.00
   Technology
                                   Collaboration                0.00
   Orientation
                                                   GOVERNME
                                                                              Value Adding
                                                      NT
                      Faridabad General Engineering Cluster- Competitiveness Factors
                                                                               FACTORCONDITIONS
                                                                   Supportfor
                                            Enforcementof businessregulations R&D3.50
                                                                                            Labour·           Availabilityof SkilledLabour
                                 Longtermplansforindustrydevelopment                                            · ManagementSkills
                                Governmenttaxand subsidysystem                                                          · EfficiencyandProductivityof Labour
                               Governmentsupportforcluster…                                                                   · EducationandTrainingfacilities
                                                                                 3.00
                                        GOVERNMENT                                                                                  Infrastructure
             Firmsawarenessof valueaddingpotential                               2.50                                                     · Qualityof InfrastructureServices…
             Potentialto addvalueto supplychains                                                                                           ·    Qualityof InfrastructureServices…
                                ValueAdding                                          2.00                                                      ·       Affordabilityof Services
            Qualityof localsupportservices                                           1.50                                                          ·        Qualityof Telecommunication…

 Responsetimeoflocalsupportservices                                                                                                                     Resources
                                                                                     1.00
   Availabilityofbusinessdevelopment…                                                                                                                       ·        Proximityto rawmaterial

                      SupplyChains                                                   0.50                                                                       ·     Affordabilityof localrawmaterialsvis…

 RELATEDSUPPORTINGINDUSTRIES                                                         0.00                                                                       ·     Qualityof rawmaterials

Levelof technologyapplicationin firms                                                                                                                           WorkersConditions

               TechnologyOrientation                                                                                                                        ·        Qualityof livingconditions for…

                   Levelof CSRactivities                                                                                                                ·           Workplaceconditions

  Proactive atnationalor internationallevel                                                                                                        DEMANDCONDITIONS
          Stronglocalassociationand business…                                                                                                  Markets
                       Levelof knowledgesharing                                                                                            Rateof domesticmarketsexpansion
                            Levelof firmcollaboration                                                                                     Rateof exportmarketsexpansion
                                              Collaboration                                                                          NewProducts
                                 Flexibilityofproductionsystems                                                                 Expansioncapacityfornewproducts
                                    Noof foreignand jointventurefirm…                                                    Responsivenessand innovativenessto…
                                                                  Structure                                       BusinessEnvironment
                                                  FIRMSTRATEGYSTRUCTUREAND… risk
                                                                   Readiness to face                        Quality productsupport
                                                                                                      Postsales and& reliabilityofproducts
                                                                                     Levelof businessethics
   Major Characteristics –RMG NCR
• Around 40% of the Readymade Garments (RMG) of the country are made in
  NCR
• It is one of the largest sources for different types of Readymade Garments
• There are approximately 2500 units comprising of manufacturers, fabricators,
  Embroidery and other supporting units.
• The Okhla cluster contributes about 16 % to the total readymade garments
  exported from India.
• Most of the small firms have family owned expertise in areas such as quality
  controller, finance controller etc. except a few diploma holders for
  merchandising.
• Large firms and export houses have commercially qualified employees for
  production, inventory control and designing work.
                                  Okhla RMG
             Factor Conditions                                  Demand-okhla
                   Labour                                           Markets
                3.00                                               2.70
                                                                   2.60
                2.00                                               2.50
                                                                   2.40
                                                                   2.30
                1.00                                               2.20
 Workers                                                           2.10
Conditions      0.00             Infrastructure                    2.00

                                                   Business
                                                                                New Products
                                                  Environment

                  Resources


    Related Support Industries                       Firm Strategy And Rivalary
                   Supply
                   Chains                                           Structure
                3.00                                              3.00
                2.00                                              2.00
                1.00                                              1.00
                0.00                                              0.00
GOVERNME                                            Technology
                              Value Adding                                      Collaboration
   NT                                               Orientation
              Gaps Identified in the Clusters

                            4
       Availability of    3.5               Education and
         Business           3
                          2.5             training facilities
       Devlopment…
                            2
                          1.5
                            1                                     Faridabad
Govvernment tax           0.5
  and subsidy               0                   Support for R&D   Gurgaon
    system                                                        Okhla

           Level of                       long term plans
          Knowledge                        for industrial
           Sharing                          dvelopment
                           Quality of
                         Infrastructure
                            services
      Faridabad Engineering Cluster -Activities
The long-run vision of the cluster is “The Faridabad Engineering cluster will become highly
competitive in both domestic and international markets by adopting the best practices in
production process improved technology and innovative marketing”

      Short Term Activites                             Long Term Activites
• Quality and standards                           • Tool Room Facilities
• Productivity improvement                        • Reverse Engineering and CAD/ CAM
                                                    Centre
• To improve use of Information Technology in
                                                  • Testing Centre (up gradation) of QMC
  the cluster
• Expanding markets and enhancing market
  penetration
• Improving supply chain management
  practices
• Workers’ health and safety programmes
• To improve access to finance
• Joint purchase of raw material
         Proposed Interventions- Okhla RMG
Quality Control and        Cutting Room                  Productivity Improvement
Improvement                Re-organisation and
                           Fabric Control
    Plant layout           Raw Material                 Production friendly Sample
    Garment Engineering    Store                         development
    Use of standards       Pattern Making of            Production planning
    Line balancing          Specialized products         Sewing Operator Training

    Textile Knowledge centre

      R&D and         Training
     innovations      Support                       EDP / IT Application

    Cluster Based
                     Knowledge
    Government
                      Sharing
       Support
Okhala Garment And Textiles Cluster
   Member        Number of        Sewing
  Companies        Units          Machines
     23             90             15500

          Garments     Turn Over (INR
          /Annum         MILLION)
           48 mn            1500
  Strategic Plan for Competitiveness
• Develop Strategic Partnerships
• Develop linkages between the local industrial units,
  technological and research institutes
• Participation in domestic and international trade fairs
• Networking of stakeholders for convergence of services
• Commitment to Social Responsibility
• Seek Govt. participation in authoritative manner
• Remove bottlenecks in infrastructure
• Work towards resolution of critical issues for SME’s
Major learning
                        CCED 2
• Preparation of Baseline Information- Data, industry
  structure value chain and spatial location
• Investment Analysis and Opportunities
• Prepare pre-feasibility study of a selected action plan for
  a marketable inter-sectoral project for the garment
  industry cluster.
                  PEARL/INDIA
• Peer Experience And Reflective Learning (PEARL) under
    JnNURM
•   To create manageable networks between JNNURM 65
•   PEARL website (www.indiaurbanportal.in).
•   Documentation of URBAN best practices.
•   Newsletter “PEARL Update” .
•   Conducting National and Groups Workshops.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:2
posted:2/25/2013
language:English
pages:21