ds_ahm by Chinesedragon

VIEWS: 53 PAGES: 127

									Implementati on of Bus iness Develop ment
       Services (BDS) for SMEs:
 Dyes/ Chemicals ( including Packaging)
                 Sector,
              Ahmedabad



    A Diagnostic Study of the Cluster



                  Submitted to:
                     SIDBI
                   New Delhi




                     By:
 Entrepreneurship Development Institute of India
                  Ahmedabad



                 30th June 2009
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




                                             Index

 Sr.                                      Chapter                                  Page
 No.                                                                               From
  1      Introduction                                                                4
         1.1    Objectives
         1.2    Rationale for the Proposed Study
         1.3    Method of Implementation
         1.4    Diagnostic Study: Methodology
         1.5    Status of Enterprise Development in the Cluster
  2      Global and National Scenario of Dyes and Chemicals                         8
         2.1    Dye Stuff Industry-Global vs. National Scenario
         2.2    Chemical Industry-Global vs. National Scenario
  3      The Ahmedabad Dyes/Chemicals (including packaging                          16
         material) Cluster
         3.1    Dyes/ Chemicals Industry Structure in Ahmedabad
         3.2    Product categories of the cluster
         3.3    Place and Geographic locations of the cluster
  4      Production Process of the Cluster                                          21
         4.1    Dye stuff
         4.2    Chemicals
         4.3    Plastic Packaging material
  5      History of the cluster                                                     34
         5.1    The beginning
         5.2    The foundation
         5.3    Earlier cluster development projects in the Cluster
         5.4    Turning point
         5.5    Progressive march
         5.6    The packaging
         5.7    The Road Ahead
  6      Vital statistics of the cluster: Profile & Status                          39
         6.1    Area wise distribution of the units in the Cluster
         6.2    MSME distribution of the units in the cluster
         6.3    Sector wise classification of the SME units
         6.4    Distribution of BDS providers
         6.5    Nature of Services sampled and surveyed
         6.6    Ownership Profile of the BDSP
         6.7     Comparative advantage of Private BDS over Public
                 BDS
         6.8    The pricing criteria used by the BDS
         6.9    Willingness to meet full cost of BDS by SME



                                                                                          2
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



  7      Comparative Value Chain analysis                                          52
         7.1   Typical comparative Value Chain addition for
               Dyestuff/Chemicals (illustrative)
         7.2   A typical comparative Value Chain for Reactive
               Yellow FG
         7.3   A typical comparative Value Chain of Acid Black 210
         7.4   A typical comparative value chain of a plastic bag
               (Liner)
  8      BDS Linkages Matrix                                                       57
         8.1   Overview of the BDS Market
         8.2   BDS Market structure
         8.3   Status in MSME
  9      Analysis of Business Operations                                           82
         9.1   Limitations of existing BDS firms
         9.2   Major issues and BDS embedded strategic
               solutions
         9.3   Areas for deciding advantages and limitations of the
                Public/Private BDS
         9.4   Who Does Who Pays Matrix (WDWP)
         9.5   Focused Group Discussion
         9.6   Current Pressure Points
 10      SWOT Analysis of the Cluster                                              98

 11      Cluster Map                                                               100

 12      Cluster Vision                                                            102

 13      Short term goals                                                          104

         Annexure-I                                                                106
         Annexure-II                                                               110

         Annexure-III                                                              111

         Annexure-IV                                                               113

         Annexure-V                                                                114

         Annexure-VI                                                               115

         Annexure-VII                                                              116

         Annexure-VIII                                                             118




                                                                                         3
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                          Chapter 1

                                        Introduction

Till 1990, small enterprise sector in India, was protected from international and
large company competition, however, after 1990, a significant policy shift was
witnessed in the country, in favour of economic liberalization. Protectionism gave
way to competition, and the role of markets became significant under the new
policy dispensation. With the opening up of the economy and to an extent
withdrawal of the protection, the rules of the game suddenly changed. Small
entrepreneurs were in many sectors/sub -sectors ill prepared for it. All of a
sudden the cost efficiency, quality, prices, technology and consumers became
critical than ever before, aspects that they had neglected for too long.

Recognizing the vital role of small-scale industry (SSI) sector in the economy, the
policy framework in India increasingly laid emphasis on promotion and growth of
small enterprises. The shift was in favour of providing real services instead of
concessions, subsidies and protection from competition. Realizing the constraints
that the owner-managers face in managing and sustaining their small ventures,
the Government had created a huge support infrastructure, which provided
subsidised business development services to facilitate easy access to quality raw
material, machinery and appropriate technology; credit on favourable terms;
support in domestic and         export      marketing,     quality     improvement;
entrepreneurial and managerial training; consultancy and counselling services,
etc., to small industry owner-managers.

Like in many other developing countries, in India, the efficacy, effectiveness and
competence of these government led-supply driven provisions of BDS have
remained sub-optimal. The limited success of parastatal agencies in providing
timely, adequate and qualitative support to small-scale industries thus calls for
emergence and growth of private Business Development Service markets.

Under these circumstances, one would expect Business Development Ser vice
Providers, as the brokers of capital and knowledge, to become increasingly
important in the process of this global trend and help small entrepreneurs’
combat competition. While BDS market for regulatory aspects is reasonably
developed, it is not so in the case of the market for strategic BDS, which is very
critical, due to a variety of reasons.

Realizing the importance of this vital issue, the Government of India has recently
taken a proactive step by implementing “the Small and Medium Enterprise


                                                                                   4
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



Financing and Development Project” (SME-F&D) in multi-donor cooperation.
Ministry of Finance, the nodal agency of the Project, appointed the Small
Industries Development Bank of India (SIDBI) as the Project Executing Agency.

1.1     Objectives:

The main objectives of the Project is to

     Foster BDS market Development
     Strengthening access of MSMES to BDS
     Making BDS Providers in cluster self –sustainable
     Developing Role Models with strong demonstration effect

1.2     Rationale for the Proposed Study:

The sponsors have selected the products because of dominant presence of a
large number of units in the selected location of the city of Ahmedabad. The
emergence of such a large number of SME units is due to ever growing textile
manufacturing and processing units, in order to avail the ample business
opportunity arising out of the textile manufacturing and processing and a
weaker presence of bigger players, ignoring the opportunity extended. A large
number of units manufacturing dyes and chemicals in different size were
established by the local players, which out grew the bigger players in a very short
period.

Similarly, the growth of petrochemical based products on the western shores of
India, found use of plastic material in packaging as an ideal form to be used in
place of other conventional modes of packaging such as Metal Drums, Paper
Bags, Jute Bags etc. As a result the location of the cluster has a large number of
units engaged in manufacturing of plastic packaging and other utility products.

The diagnostic phase of the study envisaged a survey of Dyes/Chemicals
cluster/value chains and BDS providers to understand the dynamics of BDS
provisions in this cluster.

The present report entitled “Implementation of Business Development Services
for SMEs: Dyes/ Chemicals (including packaging) sector, Ahmedabad” has been
prepared on the basis of the information collected during the field work pertaining
to the DSR Phase of the project.




                                                                                   5
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


1.3     Method of Implementation:

Method of Implementation, as envisaged, comprise of four phases;

     Diagnosing the problem areas
     Developing a prioritised Action Plan
     Implementation
     Monitoring & Evaluation

1.4     Diagnostic Study: Methodology:

The Diagnostic Study was designed in two parts; quantitative survey of BDSPs
and MSMEs (through structured questionnaire), and qualitative discussion with
focused groups, opinion leaders, and a variety of stakeholders of the cluster.

A sampling criteria covering maximum diversity of MSMES, BMOS, and BDS
hiring/non-hiring experiences have been adopted. The total sample size
randomly selected was of 70, the break-up of which is as under.


                                    Table – 1
                           Sample Units covered in the study

            Sr. No.              Stakeholders                     Number of Units
               1         MSME Units                                    33
               2         Public BDS                                    06
               3         Private BDS                                   21
               4         BMOS & Others                                 10

The list of units visited is as per Annexure I (a) to 1 (d)

Tools like ‘who does who pays’ matrix is used here. All these will help in
identification of the pressure points in the BDS market and enable in finalization
of a Business/Action Plan so as to ensure holistic development of the BDS
market and induce competitiveness in the same.

To initiate the process a meeting was organized with the executive members of
the committee of Gujarat Chemical Association (GCA) on 23 rd March 2009. The
list of members participated is as per Annexure II.

In order to facilitate macro level understanding of the BDS market scenario two
Focused Group Discussions (FGD) were organised in this cluster covering
diverse product-market scenario. The list of participants is placed at Annexure III.
Moreover, the findings will be disseminated among stakeholders in the forum of a
Validation Workshop. Presentations will be made to the Cluster Co-ordination
Committee.


                                                                                    6
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


1.5     Status of Enterprise Development in the Cluster:

The Industrial Policy 2009 has unveiled a roadmap and strategy for bolstering
the industrial climate of the state. Laced with innovativeness and acumen, the
policy has endeavoured to remove various road blocks which hampered the
industrial growth of the State. The policy seeks to connect industrial development
to the overall economic development of the State by exploring and leveraging
linkages and opportunities with other economic sectors. It aims to provide
comprehensive infrastructure, aims at achieving larger value addition and to
streamline procedures and the regulatory framework by aligning institutional
mechanisms with the new industrial paradigms and finally integrating private
initiative into the industrial development process.

Ahmedabad is the commercial capital of the State and a hub of major
business/manufacturing activities in the western part of India. It has the required
infrastructure facilities. The study was primarily focused on the three GIDC areas
in the Ahmedabad city namely Naroda, Odhav, Vatwa and Behrampura.




                                                                                   7
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                          Chapter 2

  Global and National Scenario of Dyes and Chemicals Industry
The Indian dyestuff industry has been facing difficult times. Low profitability and
demand growth combined with increasing importance for environmental
protection have resulted in the exit of many small producers. However these
factors have seen the consolidation of major players in the industry. Currently
there is an over capacity situation in the domestic market that has forced the
industry to look at exports for growth. With the closure of many manufacturing
bases in the US and Europe, MNCs are shifting to Asian countries like India and
China. The share of the MNCs in the domestic production of these two countries
has been going up steadily over the last few years.

2.1     Dye Stuff Industry-Global vs. National Scenario:

The Indian dyestuff industry is only about 40 years old though a few MNCs set up
dyestuff units in the pre independence era. Like the rest of the chemical industry,
the dyestuff industry is also highly fragmented. The industry is characterised by
the co-existence of a small number of players in the organised sector and a large
number of small manufacturers in the unorganised sector. The distribution of
these units is skewed towards with western region (Maharashtra and Gujarat)
accounting for 90%. In fact, nearly 80% of the total capacity is in the state of
Gujarat.

Scenario of International Competition:

Dyes and Chemicals are mostly a product of crude oil. The products are
manufactured worldwide in developed and developing countries. Europe, United
States of America, few Latin American countries were main producers of Dyes
and Chemicals. The global dye manufacturing industry originally dominated by
suppliers from Europe namely UK, Switzerland Germany, has shifted to Asia
over the past 20 years or so. This is primarily because of two reasons. First, due
to much lower costs of production in the Asia region. Secondly Asia's growing
prominence as the hub for global textile industry.

The main competitor, China's share in the world market is estimated to be
around 25% . Along with China, Taiwan, India, Japan and Pakistan are among
the major dyestuff producing countries in the industry. But in terms of the sheer
volume of market share, Europe is the leading. This is due because of its
allegiance towards specialty products. The global market share of Indian dyes
industry is between 5 - 7% , and it is expected to increase to almost 10% by
2010.

Following established trends seen over the past decade, the Asia/Pacific region
will experience the strongest growth and increase its share of the global dyestuff


                                                                                   8
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


and chemicals market -- representing one-half of world demand in 2013, up from
37 percent in 1998. China is by far the largest single consumer in the world and
the fastest growing national market. India will also post rapid increases, but
demand levels will remain well below that of China. China alone is expected to
account for about two-fifths of global value gains in dyes and chemicals demand
between 2008 and 2013. The impact of scale of production as in case of
China and Taiwan, bring about vast changes in the economy of cost of
product.

                                       Table - 2
                                  World Dyestuff Demand
                                                                               (Million Dollars)
                                                                           % Annual Growth
        Item               2003            2008              2013          2003-       2008-
                                                                           2008        2013
World Dyestuff            10500            13400            16200           5.0         3.9
North America              2665            2890              3215            1.6        2.2
Western Europe             1890            2140              2360            2.5        2.0
Asia/Pacific               4370            6390              8150            7.8        5.1
Other Regions              1575            2010              2475            5.0        4.2

Emerging as a keen competitor, not only to the EU and American
producers but even to the Asian countries like China, Taiwan, Indonesia and
Thailand, India has made its presence felt and in growing at parallel levels to her
competitors.

There has been a strong growth in the dyestuff industry during the eighties and
nineties. This has been made possible because of the Governme nt’s
concessions (excise and tax concessions) to small-scale units and export
opportunities created by the closure of several units in countries like the USA and
Europe (because of the enforcement of strict pollution control norms). The
duty concessions offered to small-scale manufacturers had resulted in the large
ones becoming uncompetitive to some extent. Price competition was intense in
the lower segments of the market. Liberalisation of the economy and large-scale
reduction of duties resulted in the reduction of margins for smaller manufacturers.
Closure of several small-scale units in Gujarat on environmental reasons also
helped the organised sector players.

Over a thousand different types of dyes and organic pigments are now being
manufactured in the country (both by the organised and the unorganised sector).
But the per-capita consumption of dyestuffs is lower than the world average.
Dyes are soluble and essentially used in textile products. Pigments, on the other
hand, are insoluble and are important inputs to products such as paints.




                                                                                              9
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


The biggest market for dyestuffs has been the textile industry. The dominance of
polyester and cotton in the global markets has decisively shaped the demand for
certain types of dyestuffs. On the other hand, the demand for polyamides,
acrylics, cellulose and wool was more or less stagnant. Differences in the
regional growth rates of textile products too affect demand. The Asian region saw
the biggest growth in textile production, followed by North America, Latin America
and Western Europe. This suggests the shift in the global textile industry towards
Asia. As a result, Asia leads in dyestuff production both in terms of volumes and
value, with a 42 % share of the global production; the US is next with 24 % and
Europe has around 22 %. Due to a greater use of polyester and cotton-based
fabrics, there has been a shift towards reactive dyes, used in cotton-based
fabrics, and disperse dyes, used in polyester. These two dyes have been
dominant in all the three regional global market, especially Asia. Adding to the
shift in textile usage pattern and regional developments is the extent of over
capacity in the global dyestuff industry. Capacity is estimated to be around 1.2
million tonnes, with consumption at 0.8 million tonnes, leaving a clear gap of 0.4
million tonnes.

National Scenario:

Within India, the major players in the pigments industry are Colour Chem and
Sudarshan Chemicals while in the dyestuff industry companies such as are Atul,
Clariant India, Dystar, Ciba Specialities and IDI are important players in terms of
market share. The Indian companies together account for around 6 % of the
world production.

Nearly 80 % of the dyestuffs are commodities. This means there is not
much product differentiation between the goods manufactured by most
producers. Since not much technology is involved, duplication of products is
also easy compared to specialties. However, in the recent past, there have been
attempts by global manufacturers to move to the specialty end of the product
profile, with some success. Vat dyes have always functioned as specialty
products, with technology playing an important role. Now, companies are
concentrating on the higher end of the reactive dyes segment. The trend is now
shifting from supplying mere products to colour package solutions. The emphasis
is more on innovation, production range, quality and environmental friendly
products. Producers are collaborating with equipment manufacturers to provide
integrated solutions rather than products.

Fiscal policies and changes in the usage pattern of the global dyestuff industry
have changed the market shares of Indian companies. Excise concessions for
the small-scale sector in the mid and the late 1980s spawned numerous units in
Maharashtra and Gujarat. At one stage, there were in the unorganised sector
around 1,000 units, with most of them located in Gujarat and Maharashtra. This
also led to large-scale evasion of duties.




                                                                                   10
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


However, since the early 1990s, there has been a gradual reduction in the excise
duty rates applicable to the organised sector. From 25 % in 1993-94, the excise
duty rates were reduced to 20 % in 1994-95, further to 18 % in 1997-98.

The latest Union Budget further reduced these rates to 8%. This gradual
reduction in the duty rates blunted the competitive edge of the unorganised
sector. The organised sector, with better product range, technology and
marketing reach, was able to increase its market share. But more important
changes have come through the German ban on certain dyestuffs, followed by
the implementation of the local pollution control laws. While the organised sector
has been able to phase out the production of dyes based on the 20 banned
amines by the German legislation, many in the unorganised sector were forced to
exit. This was compounded by the local pollution laws, which required setting up
of effluent treatment plants, and pushed out companies in the unorganised
sector.

Technology:

The technology for dyestuff manufacturing varies widely from relatively simple
(direct azo) to sophisticated (disperse and vat) dyes. Though technology is
locally available, most of it is outdated. The problem is further compounded by
the fact that the nature of the process changes from batch to batch and,
therefore, controlling the process parameters becomes difficult. The Indian
industry has made significant progress in terms of technology and production.

The dyestuff industry is one of the heavily polluting industries and this has
resulted in the closure of units internationally and shifting of units to the emerging
economies. Most of the international manufacturers have transferred the
technology to developing nations like China, India, Indonesia, Korea, Taiwan and
Thailand. This shift of manufacturing capacities is because the industry is
perceived as a high-cost and low return one. The batch processing also makes it
a labour- intensive industry. Thus, the competitiveness of developing economies
increases. However, the judiciary has come down with a heavy hand on several
manufacturing units, especially in Gujarat.

Restructuring:

There has been severe drain on the profitability of the industry. This is due to
entry of many new players in the last few years resulting in severe competition
and price wars. Restructuring of the Indian dyestuff industry, i nitiated a couple of
years ago, is in progress. The trend was set last year by the market leader
Colour-Chem Ltd, which decided to opt out of the dyestuffs business. It has
entered into a manufacturing agreement with Dystar India Ltd. There have been
other alignments, which would result in improving capacity utilisation of
manufacturing facilities and also obtain better reach of export markets.




                                                                                   11
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Ciba India and IDI had signed a pact to market polyester and cellulose dyes. IDI
had also tied up with Ciba for the manufacture and marketing of dyes and
pigments. Atul products has completed the acquisition of Zeneca’s 50% stake in
Atic Industries Ltd and tied up with BASF, Germany to market 50% of its
production of vat dyes.

The restructuring of Sandoz, consequent to the merger with Ciba, has led to the
creation of Clariant AG. The dyestuffs manufacturing division of Khatau Group
has been merged with its marketing company, Indokem Ltd.

2.2     Chemical Industry-Global vs. National Scenario:

Chemical industry is one of the oldest industries in India. It not only plays a
crucial role in meeting the daily needs of the common man, but also contributes
significantly towards industrial and economic growth of the nation

International Scenario:

The global chemical` industry, estimated at US$ 2.4 trillion, is one of the fastest
growing sectors of the manufacturing industry. Despite the challenges of
escalating crude oil prices and demanding international environmental protection
standards now adopted globally, the chemicals industry has still grown at a rate
higher than the overall-manufacturing segment.

As per industry reports the pharmaceutical segment contributes approximately
26% of the total industry output and approx. 35-40% is dominated by the
petrochemical segment.

Commodity chemicals is the largest segment in the chemicals market with an
approx. size of $ 750 billion while the specialty and fine chemicals segment
accounts for $ 500 billion.

Some of the major markets for chemicals are North America, Western Europe,
Japan and emerging economies in Asia and Latin America. The US consumes
approximately one-fifth of the global chemical consumption whereas Europe is
the largest consumer with approx. half the consumption. The US is the largest
consumer of commodity chemicals whereas Asia Pacific is the largest consumer
of agrochemicals and fertilizers.

National Scenario:

Chemical Industry is one of the oldest industries in India, which contributes
significantly towards industrial and economic growth of the nation. It is highly
science based and provides valuable chemicals for various end products such as
textiles, paper, paints and varnishes, leather etc., which are required in almost all
walks of life. The Indian Chemical Industry forms the backbone of the industrial


                                                                                   12
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


and agricultural development of India and provides building blocks for
downstream industries.

Chemical Industry is an important constituent of the Indian economy. Its size is
estimated at around US$ 35 billion approx., which is equivalent to about 3% of
India's GDP. The total investment in Indian Chemical Sector is approx. US$ 60
billion and total employment generated is about 1 million. The Indian Chemical
sector accounts for 13-14% of total exports and 8-9% of total imports of the
country. In terms of volume, it is 12th largest in the world and 3rd largest in Asia.
Currently, per capita consumption of products of chemical industry in India is
about 1/10th of the world average. Over the last decade, the Indian Chemical
industry has evolved from being a basic chemical producer to becoming an
innovative industry. With investments in R&D, the industry is registering
significant growth in the knowledge sector comprising of specialty chemicals, fine
chemicals and pharmaceuticals. The Indian Chemical Market Segment wise is as
under: -

                                                           Market
                        Segment                            Value
                                                           (billion US$)
                        Basic Chemicals                    20
                        Specialty Chemicals                9
                        High End / Knowledge
                                             6
                        Segment
                        Total                35

The Indian Chemicals Industry comprises both small and large-scale units. The
fiscal concessions granted to small sector in mid-eighties led to establishment of
large number of units in the Small Scale Industries (SSI) sector. Currently, the
Indian Chemical industry is in the midst of a major restructuring and consolidation
phase. With the shift in emphasis on product innovation, branch building and
environmental friendliness, this industry is increasingly moving towards greater
customer orientation. Even though India enjoys an abundant supply of basic raw
materials, it will have to build upon technical services and marketing capabilities
to face global competition and increase its share of exports.

As the Indian economy was a protected economy till the early nineties, very little
large-scale R&D was undertaken by the Chemical industry to create intellectual
property. The Industry would, therefore, have to make large investments in R&D
to successfully counter competition from the international chemicals industry.
India has a number of scientific institutions and the country’s strength lies in its
large pool of highly trained scientific manpower.

India also produces a large number of fine and specialty chemicals, which have
very specific uses and are essential for increasing industrial production. These



                                                                                   13
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


find wide usage as food additives and pigments, polymer additives, anti -oxidants
in the rubber industry, etc.

Chemical Industry in Gujarat

Chemical and Petrochemical Industry is the leading sector in terms of the
projects filed as well as under implementation category as indicated by the
analysis of the investment in chemical and allied sector vis-à-vis total industrial
investment in all sector. The Chemical Industry in Gujarat comprises of about
500 large and medium scale industrial units, about 16,000 of small scale
industrial units and other factory sector units.

Since August 1991 up to April 2005, chemical and allied sector accounts for an
investment of Rs.1671 billion which is 44.81% of total investment of the state.
Similarly 1642 projects of the chemical and allied sector involving an investment
of Rs. 577.93 Billion have been commissioned/concluded, accounting for about
53.86% share in investment of the total projects commissioned. Also 361 projects
envisaging an investment of Rs. 213 Billion are under implementation in
Chemicals and Allied Industry. The Small Scale and Factory Sector industry in
Chemical and allied field has also shown an impressive contribution in the sub-
sectors of Dyestuff and Pharmaceuticals, Paints and Fine Chemicals producing
large number of value added products.

The major reasons which could be attributed to such a spectacular growth of this
sector in the state are a strong base of petrochemical industry, increasing
availability of basic feed stock, relatively low overhead cost, and availability of
necessary infrastructure, trained and technical manpower and high degree of
entrepreneurship. Gujarat Industrial Development Corporation (GIDC) has set up
mega estates, particularly for chemicals at Ankleshwar, Panoli, Vapi, Vatwa,
Jhagadia, Vilayat and Dahej to facilitate further development and growth. The
industry is strongly supported by industrial infrastructure including 22 common
effluent treatment plants, 5 solid waste disposal sites, and chemical terminal
ports, LNG Ports, industry specific estates and special economic zones.

The lower per capita consump tion of many important items at present and
growing middle class with increasing purchase power constitutes an attractive
market for various products The development of Chemical and Petrochemical
Industry requires creation of basic and allied infrastructure facilities and in view of
the availability of the same, the Indian/Gujarat Chemical Industry has opportunity
to grow within as well as outside the country. Further the motivated
entrepreneurs, pool of technical manpower and flexibility to changes in
production set up which forms the competitive strength of the Chemical Industry
in the State and therefore, will rise to all opportunities for development and
growth in the investment.




                                                                                    14
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


The Chemical Industry needs to engage in strategic partnerships with foreign
partners with a view to realise and capitalize the latent potential. The existing
technology needs to be upgraded with the help of foreign partners. The Chemical
Industry in India/Gujarat provides a large scope for collaboration in Technology
tie-up, Process Development, Joint Research and Development, Solid and Liquid
Waste Management and Market Access for various sub -sectors of the industry.




                                                                                   15
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                          Chapter 3

The Ahmedabad Dyes/Chemicals (including packaging material)
                       Cluster




In this chapter, we will elaborate on two aspects of the cluster, viz: the various
product mix of the cluster and the geographic spread of the cluster.

3.1     Dyes/ Chemicals Industry Structure in Ahmedabad:

The Ahmedabad Dyes/Chemicals (Including packaging) cluster is located with in
the Municipal Corporation limits of the City of Ahmedabad in the central region of
Gujarat in the GOLDEN corridor. This corridor is one of the fastest developed by
the Government. The products mentioned in the definition of the cluster is having
a vide Diaspora of applications. There are more than 1000 different dyestuffs
(colouring matters) derived from a vast variety of chemicals. The chemicals have
a wide range from organic to inorganic substances. The plastic manufacturing in
this cluster is incorporated to the packaging of the dyestuff and chemicals.




                                                                                   16
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


3.2      Product categories of the cluster:

(a) Dyes sector:

The cluster comprises under our study is of Dyes/Chemicals (including
packaging material).

Dyestuff is a broad term which includes dyes and pigments. A dye is a coloured
substance or an organic compound, which when applied in a solution to a fabric,
imparts a colour resistant to washing. They are largely used by the textiles, paper
and leather industry, with textiles accounting for over 80% in India. This links the
dyestuff industry's fortunes to that of the textile industry. The important dyes
manufactured in the Ahmedabad city are predominantly as under

1.    Reactive Dyes like Black B(5), Red ME4BL(195), Yellow (145) etc
2.    Acid Dyes such as Black 210, Black 234, Red 18 etc
3.    Direct Dyes such as Black 22, Violet 9 etc
4.    Pigment Dyestuff such as Green 15, Blue 15 etc

We have mentioned these since these constitute major production of dyes; there
are other dyes in the same groups as listed below.

                                         Table – 3
                                   Dyestuff classification

Product                   Class                          Application
Dyestuff                  Reactive Dyes                  Cotton Fibre
                          Viscose Dyes                   Cotton Fibre
                          Direct Dyes                    Cotton fibre
                                                         Paper, Leather
                          Acid Dyes                      Leather, Fur
                                                         Wool, Carpets
                                                         Polyamide Fibre
                          Basic Dyes                     Jute
                                                         Paper
                          Napthol and Bases              Pigment Manufacturing
                                                         Cotton Fibre
                          Disperse Dyes                  Synthetic / Polyester fibre
                          Pigment Dyes                   Cotton, Leather
                                                         Paper, Plastic
                                                         Petroleum products
                                                         Paints
                          Solvent Dyes                   Plastics
                                                         Petroleum Products specially fuel
                                                         colouring
                          Vat Dyes                       Cotton Fibre


                                                                                       17
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


(b) Chemical sector:




Most of the chemicals classified in to sub grouping listed above are
manufactured in Ahmedabad to different manufacturing capacities. However
majority of the bulk production is located to the regions south of Ahmedabad.

Ahmedabad is known to manufacture inorganic pigments used extensively in
manufacturing dyes and other catalytic applications. There are Organic
compounds in form of Resins and allied class, used in paint and other
applications. There are also wide classes of textile auxiliaries, due to the
proximity to the market.

The chemicals produced and utilized for the manufacture of applications are
even greater than the colouring matter. The chemical sector is mostly in to the
Organic and Inorganic sections of the chemical table. The Organic section deals
mainly with the Hydrocarbons and a link of the carbon chain where as the
Inorganic section deals mainly with the metals and metal derivatives. The
important chemicals manufactured in the Ahmedabad city are predominantly as
follow:




                                                                                   18
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


1. Organic compounds such as H Acid, Vinyl Sulfone, J Acid etc
2. Metal Salts such as Ferrous sulphate, cuprous chloride etc
3. Textile Auxiliaries such as softening agents etc

We have mentioned these since these constitute major production of chemicals;
there are other chemicals with a wide range of applications as listed below.

                                        Table – 4
                                  Chemical Classification

Product                           Class                             Application
Chemicals                         Organic Chemicals                 Manufacture of Dyestuff
                                                                    Intermediates
                                                                    Manufacture of Solvents
                                                                    Manufacture of Paints
                                                                    Textile application
                                                                    Auxiliary Products
                                  Inorganic Chemicals               Manufacture of Dyestuffs
                                                                    Paints
                                                                    Bullion
                                                                    Auxiliary Products
                                                                    Textile Application
                                                                    Paper Industry
                                                                    Miscellaneous
                                                                    applications


(c ) Packaging sector:

Plastics packaging products are largely in three categories, based on the mode
of operations used in the manufacture of the product. Viz., Extrusion, Blow
moulding, & injection mouldings. , items, such as Drums, Carboys, Liner Bags
etc We have mentioned these since these constitute major production of
packaging material; there are other plastic packaging materials with a wide range
of applications as listed below.
                                    Table – 5
                        Packaging products classification

Product                     Class                                   Application
Plastic           Packaging Extruded-Blown films                    Bags/ tubing
Products                                                            Wrapping
                                                                    Lining
                                  Blow Moulded                      Carboys for liquids
                                                                    Drums for Powder
                                                                    Bulk carrier
                                  Woven Sacks                       Packaging of Powder


                                                                                          19
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


The range of application in this cluster is limited in our scope of study, only to the
packaging of Dyestuff, Dyes Intermediates and Chemicals otherwise than that of
the Dyestuff utility. Plastic has other innumerable uses, which makes it a very
large cluster with an unmatched size and scale of operations. Even though
MOST of the units in Plastic manufacturing cluster fall under the SMEs, still the
range of produce plastic industry offers is unmatched to any other manufacturing
activity. Spare parts in many industries, bottles, construction work, proposed road
building is few to name amongst them. We have therefore restricted our study
only to the plastic packaging material used extensively in dyestuff and chemicals,
which is sold in bulk. We have not covered another aspect of the chemicals
relating to pharmaceutical.

3.3      Place and Geographic locations of the cluster:

The size of cluster is from amongst the units producing dyestuffs and chemicals
to the tune of more than 1200 units in the geographical boundaries of the location
cited at 3.1 above. The location of the cluster in state of Gujarat is as shown in
Annexure IV. Further the areas / locations in the city of Ahmedabad where the
units are situated are shown in Annexure V. We can tabulate the spread of
cluster as per the tabulation mentioned below.

                                      Table – 6
                           Geographical spread of the cluster

         Enterprise                         Location                        Concentration

                                  Naroda                             23%
                                  Odhav                              05%
   Dyestuff, Chemicals            Vatwa                              47%
                                  Narol/Behrampura                   03%
                                  Others                             22%
                                  Naroda                             22%
                                  Odhav                              22%
      Plastic Packaging
           Material               Vatwa                              40%
                                  Others                             16%




                                                                                            20
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                          Chapter 4

                       Production Process of the Cluster
The products of the cluster viz. Dyes, Chemicals and Plastic packaging materials
are discussed here in a sequential manner in an illustrative format. These are
presented for a study both in a pictorial manner as well as with an overview. The
pictorial presentation will explain in brief, different kinds of machinery utilised for
the production of the particular class of items. Where as the overview will
summarise in a shortest possible manner the flow of process.

4.1     Dyestuff:

The process of Dyestuff manufacturing, in pictorial form is presented as under




Different RAW Materials
(Intermediates) are prepared
to be ready to react with each
other and form a permanent
bond to each other in vessels
fitted with stirrers and other
gadgets




                                                                                    21
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




The ready for bonding RAW
materials are mixed to
couple/bond with each other
under specific process
conditions and allowed to form
a bond making a dye in
Vessels




The dye liquid so formed is
further treated to achieve
certain quality parameters in
the vessels
With the use of Reverse
Osmosis etc.




                                                                                   22
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




Salt is added to the dye liquid.
The more soluble salt
pushes/precipitates dye
molecule out of this liquid to
give dye in a suspended solid
format.
Alternatively a clear dye
solution is put in a spray drier
to get a dry dye powder
evaporating the liquid.




The suspended dye particles
are removed from the liquid by
way of filtration and collected
in a cake form




                                                                                   23
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




The cake is put in to the driers
to dry at a fixed temperature
evaporating water/moisture




A dry raw dye substance is
ground in pulverizes unit to
give a fine dye powder and put
to pre-quality analysis.




                                                                                   24
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




The crude dye powder is
mixed with other diluents to
give a standardized product.




This standardized dye powder
is packed in different forms of
containers and stored in
warehouse for removing to
market.




                                                                                   25
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




The process of Dyestuff manufacturing, in an overview form is presented as
under:



   Preparation of                      Coupling of                        Process
   Raw Materials in                    Ready Raw                          completion and
   Vessels                             Materials in                       further quality
                                       vessels                            processes



   Salting out the                     Spray Drying of                    Tray Drying of
   Finished Product          OR        Liquid formulated                  dyestuff in wet
                                       Dyestuff                           cake format




   Grinding of Dry                     Quality                            Standardisation
   Dyestuff lumps                      Determination in                   in Ball Mill or
                                       Lab                                Blender




   Quality Analysis                    Packaging in to                    Removal to
   of Final                            desired format                     Market
   Marketable
   Product




                                                                                            26
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




4.2     Chemicals:


The process of chemical manufacturing, in pictorial form is presented as under:




Intermediates required are put
in to vessels under process
condition with the aid of
necessary chemicals and
prepared to bond with other
intermediates




The ready intermediates are
mixed under specific conditions
to get a permanent structure.




                                                                                   27
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




The ready compound in a liquid
format is further treated for
attaining quality parameters and
a final compound is obtained




A final chemical compound is
salted out by treatment with
chemicals in a wet cake format
Alternatively Spray dried to give
a final dry chemical compound




The chemical compound is
analysed for quality in lab.




                                                                                   28
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




The finished marketable
compound is packed in to
desired packing




The packed chemical
compound is removed to the
warehouse for marketing.




                                                                                   29
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




The process of chemical manufacturing, in an overview form is presented as
under:


   Preparation of                      Coupling of                        Process
   Raw Materials in                    Ready Raw                          completion and
   Vessels                             Materials in                       further quality
                                       vessels                            processes



   Salting out the                                                        Spray Drying of
   Finished Product                           OR                          Liquid formulated
   Using filter                                                           Chemical usi ng
   presses/nutch                                                          spray drier




   Quality Analysis                    Packaging in to                    Removal to the
   of Final                            desired format                     Market
   Marketable
   Product in Lab




                                                                                              30
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


4.3     Plastic Packaging Materials:

The process of manufacturing plastic packaging materials, in pictorial form is
presented as under:




Different grades of plastic grains,
mostly HDPE/LDPE/LLDPE
quality are melted, pre-mixed with
certain chemicals to give specific
gradation. +




The molten plastic compound is
blown in to a bubble to give a
mono or multi layer film.
Alternatively




The compound is melted in
specific moulds, by Injection
molding under process
conditions to give specific shaped
container




                                                                                   31
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




The film is cut to desired shapes
to give a bag or finished with
tools to give a drum/carboy/bottle




The ready packaging material is
subjected to testing for quality




The ready packaging material is
removed to the ware house for
marketing.




                                                                                   32
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




The process of manufacturing plastic packaging materials , in an overview
form is presented as under:


   Preparation of                      Blow Moulding/                     Process
   Raw Materials in                    Injection                          completion and
   feeding crates                      moulding                           further quality
                                                                          processes



   Quality Analysis                    Packaging in to                    Removal to the
   of Final                            desired format                     Market
   Marketable
   Product in Lab




                                                                                            33
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                          Chapter 5

                                  History of the cluster

In this chapter, there is a reference to earlier activities of cluster development
taken place in this cluster. Apart from this the various turning points and the
progress of this cluster are briefed.

5.1     The beginning:

With the invention of Fabric, colouring matter is invented as a fashion definition.
Indian climate, which is conditioned to tropical climatic changes have
predominantly based on cotton fibre for weaving of the fabric and this is the
matter widely used as clothing world over.

5.2     The foundation:

The innovative entrepreneurship of the Gujarati community led to establishment
of composite textile mills in Ahmedabad for manufacture of cotton fabric in early
forties. Almost the entire Indian sub-continent was being fed by cotton fabric
produced in the western region of India, viz. Mumbai and Ahmedabad.

This led to the setting up of units manufacturing dyestuff needed to colour the
fabric. The dyestuff manufacturing was limited to Germany before the world war
and controlled by the German trading community. Most of the innovations in the
dyestuff industry have taken place in Germany.

Primarily the dyestuff units were established in Mumbai and southern parts of
Gujarat, owing to the proximity of textile industry as well as port of import. The
visionary Gujarati leaders in the merchant community, established dyestuff
manufacturing units in Ahmedabad about 40 years down the line. The names
such as Shri Kasturbhai Lalbhai, who is a pioneer of Dyestuff Industry in Gujarat
as well as the modern day entrepreneurs to name a few, Shri Jayendra
Kharawala, Shri Gautam Jain, Shri Dinesh Shah are the key persons who have
contributed to the development of the cluster of dyestuffs and chemicals in the
map of cluster location.

5.3     Earlier cluster development projects in the cluster:

Earlier a study in the same cluster was undertaken by the Bureau of Energy
Efficiency (BEE). The purpose of this study was to evaluate energy consumption
and potential for energy management by SME units in Ahmedabad Dyes cluster.




                                                                                   34
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Some of the important findings of the study by BEE are as under.

       Ahmedabad plays a vital role in rendering the commercial resources and
        market access for the economies of neighboring cities. Some major
        industries of Ahmedabad are Textiles, Chemicals, and Pharmaceuticals &
        Petrochemicals.
       Major energy consuming equipments are Pressure vessel, Dryer, Boiler &
        mixer.
       Energy cost is 5 to 8% of the total production cost. The major cost is of the
        raw material, which is as high as 65 to 70%.
       The major concern / issue being the pollutants being created due to the
        chemical reactions as well as effluent being generated round the clock
        from over 300 units.
       The Green Environment Co-operative service which was formed wherein it
        collects the primarily treated liquid effluent and gives it the secondary
        treatment & proper disposal, a high tech internal collection system & an
        advanced treatment plant has been developed.
        At present, since last ¾ months the units have slowed down due to
        market conditions in global sector as well as Indian market, otherwise
        there is no other problem. Raw material. Energy/power & Labor are all
        available easily.
       The energy consumption as estimated by the findings of the report is as
        under for different sources of energy:

Our Diagnostic study reveals this as an unfinished agenda. The purpose of BEE
study being devoid of any action plan, we have included his un-attended area in
our action plan. We have however taken a basic data for the value chai n analysis
for further deciding the action plan.

The findings of BEE reveal following data as tabulated and described below.

                                        Table - 7
                                 Cumulative Fuel Usage

                                       Qty consumer per                 Number of Units
                  Fuel
                                            annum                        using the fuel
         Electricity                      6142878 Units                            149
         Firewood / Husk                  45534 Tonnes                             142
         LDO                              299760 Liters                            22
         PNG                                784200 Kg                              25
         Coal / Hard Coke                  3300 Tonnes                              2




                                                                                          35
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



       While analyzing the pattern and consumption of energy in different
        sources on the percentage basis the findings are listed as under

                                       Table - 8
                    Usage of Electricity (In Units consumed per annum)

          Electricity consumption in number of                    Percentage factories in
                            units                                      this bracket
                      Upto 20000 Units                                     28%
                    20000 to 40000 Units                                   29%
                    30000 to 50000 Units                                   14%
                   50000 to 100000 Units                                   26%
                  100000 to 300000 Units                                    2%
                    Above 300000 Units                                      1%

       The BEE report is basically for energy analysis and hence the findings
carry importance as far as the energy consumption is concerned.

Lessons learnt the impact and relevance to Industry.

A previous study by BEE and our diagnostic study, though have a different
outlook and objectives, reveal certain common apathy amongst the Industry units
towards important issues, leading to betterment of operations, with the aid of
Business Development Service providers. We have based our action plan largely
and worked out the finer points subsequently on the lessons learnt as under.

Sensitization – Awareness is the main issue. Micro & Small units have almost
no means to know, consider and implement, advantages available to them, due
to lack of knowledge and absence of awareness about the availability of the
expertise.

Regulations – The implementation of certain controlling regulations by the
regulatory authorities, are either ignored off or shunted off by the units. An effort
to make them aware of the acuteness of the problem is essential to the very
existence of the units.

Environmental compliance in cleaner production technology - A diagnostic
study covering the technology related BDS providers, reveals availability of the
solutions, with the technical experts to ensure cleaner production, which in turn
will reduce the environmental load considerably.

Energy audit – The industry has a practice of installing machinery based on
availability and marketed by the machinery manufacturers. A detailed study
reveals a wider scope to audit the energy requirement and cut down the cost
considerably making the equipments tailor made.


                                                                                            36
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




Website – Most of the units source for service providers on the basis of
information available in a closed group. The days ahead are of extensive use of
the internet, with an explosion of information availability. A portal or a website for
a clear interaction of the benefiting units and BDS provider linkage, will work out
to the betterment of both parties extensively.

Directory - The print media is also not outdated, a soft copy and a printed
version of Directory of Public and Private BDS providers, will greatly help
enhancing the availability of services.

Facilitating Co-operative market development – Micro level units, mostly
working either under the shadow of some large unit, has limitation and constrain
of marketing their products. However, if a co-operative of such units is formed,
they will have a better perspective of the market, with wider availability and
negotiation power.

Skill Up gradation – Most units run by technocrats, with a forgone knowledge
acquisition, brings about a hindrance to the exposure to the skills/technology up
gradation. Lot is required to be done in this field by technical service providers, to
ensure optimum unitisation and reduced cost.

Quality certification, social compliance & testing facilities – Those units
desirous to open avenue in international market, do not have proximity to the
internationally recognised standards. Hence, a service by BDS providers will
greatly help attend this problem and open up industry to the international market.

Management Development Programme – A limitation arising out of scale and
size of operations, limits the entrepreneurs from acquiring latest manageme nt
skills. BDS providers have a wide scope of training up management to meet new
challenges.

Capacity Enhancement – Stagnancy in industry brings about downward trend
and a negative growth of operations. Enhancing the capacity will help create
pathway to better growth perspective.

Exposure visit – While we make a statement that the cluster is biggest
accumulation of dyes and chemical units, units need to interact with other
centres, by visiting units who have moulded themselves in role models, by
utilising the competence of BDS providers, resulting in a growth pattern of 80:20
OR by interacting with such units to exchange positive actions thought about.




                                                                                   37
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


5.4     Turning point:

With the decline of textile weaving industry in Ahmedabad, the textile processing
units, mainly catering to the ever increasing demand of cotton fabric, flourished in
Ahmedabad. Hence the inseparable industry of Dyestuff manufacturing came in
force and stayed. As the city rapidly grew, Gujarat Industrial Development
Corporation established notified area around the then existing Municipal
Corporation limits, to attract more and more industrious entrepreneurs. The
Chemical and Dyestuff units, came to existence in these areas, and grew
beyond.

5.5     Progressive march:

Opening up of world trade and the cost effectiveness of Indian manufacturing,
attracted many large traders, involved in the marketing of dyestuff to the
processing units world over. Thus a boom arrived in exports of Indian Dyestuffs
since 1985, which helped many increase manufacturing manifolds to help meet
the export demand. As of today more than 1200 units exist, in a fully operational
condition, with in the municipal corporation city limits of Ahmedabad.

5.6     The packaging:

The modern day packaging is comprised of typically petroleum based packaging,
viz. plastic. There are countless items produced from plastic, however, packaging
constitute the most basic form of plastic industry in Ahmedabad. Drums, Bags
made from plastic are used in packing the chemicals and dyestuff. Thi s
packaging material being very cheap in effective cost, in the packaging to end
product, need a close proximity to the consuming market and hence manufacture
of plastic packaging products, which is under the purview of this study, has
growth assigned to the flourishing of this cluster.

5.7     The Road Ahead:

The dyes and chemical industry is facing a lot of challenges in the changing
scenario of global economy. The extreme ly competitive market, reduced margin,
lack of innovation, pressure from multinationals, global slow down and last but
not the least, increasing pressure from regulatory and voluntary agencies for for
maintaining environment free from pollutants, all are indicative of tough days for
the cluster.

A modern management study and skills, co-existence, utilizing skills from
competent BDS, will help the cluster to overcome, the challenges it is facing
today and will make it boom again with the turnaround of the economy. An early
call for attacking the environmental aspects, in the changing socio economic
structure of immediate neighbourhood has woken up the enterprises for a
CLEANER AND GREENER manufacturing process.



                                                                                   38
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                            Chapter 6

              Vital Statistics of the Cluster: Profile & Status

Majority of the units of the cluster are located in the largest of the then notified
area of Industrial estate by the GIDC, called Vatwa, which is on the southern
eastern outskirts of the industrial belt, the broad spectre of the colouring matters
produced and the chemicals produced are linked to the range of products ha ving
a wide application of each individual products.

6.1     Area wise distribution of the units in the cluster:

While arriving at the eventual distribution set up of the cluster units, a study
shows that the earliest industrial area developed by the Gujarat Industrial
Development Corporation has most number of units, because of the land size
of the estate. The units are thus distributed in the different areas, developed by
the state government are best represented as in the table below. A co-relation of
the inter-dependant units in the concentration is best represented in the table
below.
                                    Table – 9
                  Industrial estate wise distribution of units.

                                               Number of Units
          Area                        Dyes & Chemicals         Packaging(Plastic)
                                Micro  Small Medi      Total   Micro     Total
G.I.D.C. Estate Naroda           170     85      5      260      20        20
G.I.D.C. Estate Odhav            40      18      2       60      20        20
G.I.D.C. Estate Vatwa            370    180     10      560      35        35
G.I.D.C. Estate Narol /
                                    28         12          0         40            0    0
      Behrampura
   Spread over other
  industrial areas not            195          80          5         280           15   15
under the notified area
          Total                   803         375         22        1200           90   90

                                      Dyes & Chemical Units



                                23%

                                                                       47%
                        3%


                          5%

                                      22%

                       Vatwa GIDC                   Naroda GIDC
                       Odhav GIDC                   Narol / Behrampura GIDC
                       Others                                                                39
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                 Industrial estate wise distribution of units




             No. of Units
                            Plastic Packaging units


                            Dyes & Chemical Units


                                                      0   100    200   300    400   500   600
                                                                Product Category


                                Vatw a GIDC                 Naroda GIDC
                                Odhav GIDC                  Narol / Behrampura GIDC
                                Others




6.2      MSME distribution of the units in the cluster:

A study and the data received from the BMOs in the cluster area map further
divides the cluster units in based on the scale of operations as in

                               Table – 10 (Illustrative)
      Distribution of Units on scale on investment, Turnover & Employment

   Sub                      Size of Unit        No of       % of        Turn over in      Employment
  Sector                                        Units       Units        Rs. Crores        Generation
  Dyes &                       Micro             803         65%           3000              13000
 Chemicals                     Small             375         33%           5500              20000
                              Medium             22          2%            1650              5000
  Plastic                      Micro             90         100%            100              3000
 Packaging
    Overall Export Figures of Dyes & Chemicals as per Customs Record
Name of Commodity                             Apr-Feb 2006         Apr-Feb 2007 % Growth %Share
                                              Export Value of Export Value
                                              Goods           of Goods
                                              INR in Crores INR in Crores
INDIA EXPORT OF
CHEMICALS & RELATED      61,174.34                                 71,680.24         17.17      14.04
PRODUCTS
INDIA EXPORT OF
DYES/INTMDTES & COAR TAR 6,029.60                                  9,207.34          52.70      1.80
CHEML
Export figures unit type wise are not available at this stage.




                                                                                                        40
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


The Participating units in the sample study are indicative of the turnover and
employment pattern as under

       There are 900 micro units, generating direct employment of 13000 people
       There are 375 small units, generating direct employment of 20000 people
       There are 22 medium units generating direct employment of 5000 people

We can therefore use the data to indicative employment generations as
illustrated above in table 8




                                                                                   41
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


6.3      Sector wise classification of the SME units:

During the field study of the SMEs, we have visited about 33 units as per the
following break-up. A detailed list and the nature of the information gathered are
listed separately.




 Type                       Units
 Dyes &
 Intermediates D              19

 Chemical – C                  9

 Packaging – P                 5

 Total                        33



                                                                                       Size of firm
                                                          12
                           Units                                                          11          11          10
 No of                                                    10
                                          No of Units




 Employees                                                        8
 < 10                                1                            6
 10 – 25.                           11                            4
 25 – 50                            11                            2          1
                                                                  0
 > 50                               10
                                                                            < 10       10 - 25.   25 - 50         > 50
 Total                              33                                                 No of Em ployees




                                                                          Size of the Firm Turnover Basis
 Sales
                         Units
 Turnover in Rs.                                                  15                    12
                                                    No of Units




 Crores                                                                                          10
 <2                                  4                            10                                        7
                                                                              4                                           Units
 2 – 10.                            12                                5
 10 – 25.                           10                                0
 >25                                 7                                       <2        2 - 10. 10 - 25.     >25
 Total                              33                                             Turnover in Rs. Crores


                                                                                                                         42
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


6.4     Distribution of BDS providers:

Our study is for the scope of development of BDS market, to provide need
based services to SMEs engaged in the manufacture of products mentioned
above. We have identified considerable scope for various services required,
utilized and ignored by the SMEs. The services ignored by them are of great
importance for the healthy conditioning; however they are not sought after due to
certain compulsions on the part of member units of the cluster.

A Study of BDS market in the cluster of dyes, chemicals and plastic packaging
materials manufacturers in Ahmedabad, reveals following beneficiaries.

Beneficiaries: SME units of Dyes/Chemicals and Plastic (packaging material)
situated in the municipal corporation limits of Ahmedabad, BDS providers, in the
TECHNICAL and NON-TECHNICAL sectors.
Other Stakeholders: Business Management Organisations, Regulatory
Authorities.

We have classified the BDS providers on the basis of the type of service they are
providing as well as depending upon the industry sector or the product, the
service find need to be catered to.

6.4.1 Distribution – Based on Area of Service:

                               Table–11 – (Illustrative)
                  Service Area wise distribution of BDS providers

   Technical Sector                              Non Technical Sector
      Specific field                Focused Specialized           Non-focused
       knowledge                                                  Generalized
Product Development               Product Marketing         Taxation
Process Control                   Trade fare                Sector related benefits
Quality Analysis                                            Procurement of utilities
Environment Related               Procurement of Raw Training/safety
Service                           materials
Technology related                Quality registration such Patents Related activity
Research & Development            as REACH, ISO
Environmental / Energy            Designing/Developing      Marketing
Audits

Our study does not consider parties/units engaged in actual material transaction
as SERVICE PROVIDERS. The basic definition of Business Development
Service Providers is that the units or bodies who supply services, based on
knowledge acquired, and are not engaged in material transaction are Service
Providers for the enhancement of Business.



                                                                                   43
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


The type of services offered and availed by SMEs are numerous and the number
of BDSP available are also comparatively too large to list. However we have
made a study of the existing BDSPs, whose services are taken by the sample
units and those who have responded to our basic survey during the field work.
An illustrative break up of the services and pricing patterns are listed as under.


6.4.2 Distribution – Industry Sector wise (Product Based):

The product in our study viz. dyes and chemicals as well as plastic packaging
material are manufactured by largely units falling under MSME. Their existence
in the sector depends largely on the services provided by BDS. The size of units
not allowing them to avail the paid services of experts in the speciality fields, as a
result of prohibitive recurring costs, directs them to the BDS. The employment is
thus generated in the other operations in these units, other than speciality fields.

Our study identifies presence and requirement of BDS starting from
establishment to smoother operations for these units as under

                                       Table – 12
                                BDS For Dyes & Chemicals

Sr.   Type of BDS           Service Rendered            Approx       Willing       Approx
No                                                      charges      ness to       Nos in
                                                                     Pay by        Cluster
                                                                     Units
1     Financial             - Project study and         1.5 – 2 % on YES           Numerous
      Service               presentation to             value
      Providers             financial institutes,
                            - Different modes of        Depends on        YES
                            business                    the man-
                            transactions on             hours
                            instruments                 spends
                            negotiated in banks,        Aprx 1000
                            such as establishing        per hour
                            L.C., export
                            documentation,
                            packing credits etc
2     Technical             Project                     On Ad-hoc         YES      Numerous
      Service               Implementation and          basis
      Providers             product                     depending
                            manufacturing               on product
3     Quality               For establishing            Rs. 5000 &        YES      8 – 10
      Certification         product under               above
      and                   international norms
      Registration          and getting quality


                                                                                             44
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



      Services              certification
      providers             universally,
                            internationally
                            established. E. g.
                            REACH, OKETEX,
                            ISO registration etc.
4     Environment &         Erection of                 Rs. 10000/-       YES         35 – 40
      Energy                Environment
      Related               Treatment Plant
      Service               and avail
      Providers             clearances from
                            regulators, followed
                            by regular
                            operations, energy
                            audits etc.
5     Administrative        Clearances for              Rs.1500 to        YES         Numerous
      & Regulatory          other regulators in         Rs. 5000
      Services              non technical
                            segments such as
                            taxation, followed
                            by regular
                            operations, factories
                            act, energy
                            clearance, industrial
                            registration etc and
                            a regular follow up
6     Procurement           For the speciality          1.5 – 2% on       Partially   15 – 20
      service               purchasing of raw           value
      providers             material in form of
                            imports and
                            clearances
                            associated with the
                            same
7     Marketing             For speciality              1.5 – 2% on       Partially   15 – 20
      Service               markets such as             value
      Providers             exports and bulk
                            buying, For availing
                            export benefits
                            declared under the
                            Import Export codes
                            by the government
                            of India
8     Equipment             Such as regular and         5 – 10 % on       Partially   8 – 10
      Servicing             preventive                  equipment
      Providers             maintenance of the          value
                            plant/ machinery


                                                                                                45
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                            and instruments
9     Testing               Testing and                 Depends on        YES         28 – 30
      Laboratories          analysis of raw             specific
                            materials and               product &
                            finished products           test
10    Research and          For the                     Based on          NO          5 – 10
      Development           establishment of            product
                            product line for cost
                            effectiveness and
                            new product
                            development
11    Providing             For the movement            Based on          YES         Numerous
      Logistics for         of material locally         distance &
      local and             as well as                  load
      international         internationally
12    Providing             For the equipment           Depends on        YES         10-15
      Technical             handling and other          the man-
      Training to           production aspects          hours
      plant operators       for labour as well as       spends
                            staff up the order          Aprx 1000
                                                        per hour
13    Industrial            For establishment           Rs. 5000 –        Partially   10-15
      Relations             of Industrial               Rs. 10000
      training              Relations and
      providers             improvement of
                            work environment.




                                                                                                46
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Our study in manufacturing of plastic including packaging material identifies the
presence of following BDS providers listed as above from establishment to
smoother operations as under.
                                    Table – 13
              BDS For Plastics (Including packaging materials):

Sr.   Type of BDS          Service                   Approx             Willingne   Approx
No                         Rendered                  charges            ss to Pay   Nos in
                                                                        by Units    Cluster
1     Financial            Project study and         1.5 – 2 % on       YES         Numerous
      Service              presentation to           value
      Providers            financial institutes,
                           different modes of        Depends on         YES
                           business                  the man-
                           transactions on           hours
                           instruments               spends
                           negotiated in             Aprx 1000
                           banks, such as            per hour
                           establishing L.C.,
                           export
                           documentation,
                           packing credits etc
2     Technical            Project                   On Ad-hoc          YES         Numerous
      Service              Implementation            basis
      Providers            and product               depending
                           manufacturing             on product
3     Quality              Such as obtaining         Rs. 5000 &         YES         8 – 10
      Certification        quality                   above
      and                  Registration for
      Registration         the operation e.g.
      Services             ISO registration &
      providers            Patents
4     Administrative       Clearances for            Rs.1500 to         YES         Numerous
      & Regulatory         other regulators in       Rs. 5000
      Services             non technical
                           segments such as
                           taxation, followed
                           by regular
                           operations,
                           factories act,
                           energy clearance,
                           industrial
                           registration etc
                           and a regular
                           follow up
5     Equipment            Such as regular           5 – 10 % on        Partially   8 – 10


                                                                                             47
 Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



       Servicing       and preventive                 equipment
       Providers       maintenance of                 value
                       the plant/
                       machinery and
                       instruments
 6     Testing         Testing and                    Depends on         YES         10-15
       Laboratories    analysis of raw                specific
                       materials and                  product &
                       finished products              test
 7     Research and For the                           Based on           NO          3-5
       Development     establishment of               product
                       product line for
                       cost effectiveness
                       and new product
                       development
 8     Providing       For the movement               Based on           YES         Numerous
       Logistics for   of material locally            distance &
       local and       as well as                     load
       international   internationally
 9     Providing       For the equipment              Depends on         YES         10-15
       Technical       handling and other             the man-
       Training to     production aspects             hours
       plant operators for labour as well             spends
                       as staff up the                Aprx 1000
                       order                          per hour
 10    Industrial      For establishment              Rs. 5000 –         Partially   10-15
       Relations       of Industrial                  Rs. 10000
       training        Relations and
       providers       improvement of
                       work environment.

The simplicity of product, limitations of markets and ease in operations has
put a limit on the requirement of BDS for the product, plastics (including
packaging material) than the dyes and chemicals.




                                                                                             48
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


6.5 Nature of Services sampled and surveyed:


    Nature of service             BDSs
 Product/process
 related technology
 ,environment audit,
 effluent management                10
 Laboratory & Lab
 Equip, R&D , all types
 of testing                         6
 ISO, Patents &
 Regulations                        5
 Tax, excise, custom &
 Accounts -                         3
 Finance, EXIM &
 Marketing                           5
 Total                             **29

**Three BDS in the sample are providing multiple services



6.6 Ownership Profile of the BDSP


 Constitution           BDSs

 Proprietor – 1             13

 Private – 2                  5
 Public – 3                   5
 Partnership – 4              0

 MNC Group – 5                3
 Total                      26


Most number of BDSP in private sector are proprietary units and are commonly
used by SMEs, compared to the other groups. The reasons for such active core
belonging to the proprietary BDS units are listed in 5.7 below.




                                                                                   49
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


6.7 Comparative advantage of Private BDS over Public BDS:



 Services of
 Govt Org.            BDSs

 Cumbersome                 13

 Corruption                   2

 Inefficient                  8

 High Cost                   1
 Total                      24



The majority units participating in field study had an important observation to
make for not being attracted to obtain services of pub lic BDS is the cumbersome
nature of procedures, causing delays not tolerable to the small size units.
Inefficiency part is however due to the apathy of personnel involved in the
interaction and has got nothing to do with the knowledge.

6.8 The pricing criteria used by the BDS:

                                                                 Pricing criteria
 Pricing Criteria                                                          3%
 of Service                 BDSs                  39%
 Sales Turnover – 1                  1
 Severity of                                                                              50%
 Challenge – 2                     18
                                                             8%
 Monopoly – 3                        3
                                                    Sales Turnover - 1             Severity of
 Time – 4                          14                                              Challenge - 2
 Others – 5                          0              Monopoly - 3                   Time - 4

 Total                             36


BDS units have in general discussed about the pricing by the time devoted in
fulfilling the task on hand. More a challenging job, more the time and vice versa.




                                                                                                50
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


No one in particular associated with the volume of business of client, which is a
positive note in such transactions.

6.9 Willingness to meet full cost of BDS by SME:

Most of the service providers are keen on charging to their clients on the basis of
the time consumed as well as for the severity of the challenge in the service,
whereas the willingness of the SME to pay for the services is as listed under.




  Willing to meet
                          Units
 full cost of BDS


 Yes – Y                       30
 No – N                         3
 Total                         33



Apart from the apprehensions regarding capability and transparency of the BDS
provider, the SME clients are in general ready to pay to the optimum capacity of
the task assigned to the BDS provider.




                                                                                   51
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                          Chapter 7

                       Comparative Value Chain Analysis
To arrive at an optimum concept in the cluster co-operation, specifically for
arriving at a role model in the value chain utilization, a study broadly indicative of
the Schematic Diagram, giving an idea of the generic presentation of the value
chain is arrived at. This is indicative in few areas of operation.

Process flow chart (Generic)


      Raw                              Other Chemicals                             Energy
      Materials                        and Process                                 such as
                                       Control additives                           Power &
                                                                                   Fuel, others


      Manpower                     Packaging                    Cost of
      Utilization                                               Goods



7.1         Typical comparative Value Chain addition for Dyestuff/Chemicals
            (illustrative)

             Constituting on the basis of 100% of the product sale price.

                                                                       Ideal by a
                                                     Current           Role Model
           Particulars
                                                     Scenario          in the
                                                                       Industry

           Raw Materials used
                                                          65%                55%

           Other Chemicals and Process
           Control additives                               7%                 5%

           Energy such as Power & Fuel,
           Environments treatment                          8%                 6%

           Manpower Utilization
                                                           5%                 3%
           Packaging                                       1%                 1%
           Total Cost of Goods                            86%                70%


                                                                                                  52
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


To specify the generic representation of value chain, a study in few major
products in the cluster gives a following presentation.

7.2     A typical comparative Value Chain for Reactive Yellow FG

      For 1000 kg finished product with a sale out put at Rs. 85000/-


                                                                       Ideal by a Role
Particulars                            Current Scenario
                                                                       Model in the Industry

Raw Materials used
  • Vinyl Sulfone
                                       55250/-          65%            46750/-     55%
  • 4-Sulfo-Phenyl 3-
     Carboxy Pyrazolon

Chemicals Used
  • Caustic Soda
                                       3400/-             4%           2550/-      3%
  • Hydrochloric Acid
  • Sodium Nitrite

Allied Value Load
    • Ice                               2550/-           3%            1700/-      2%
    • Salt

Additive Overheads
  • Electricity
  • Fuel
                                       6800/-            8%            5100/-      6%
  • Material Handling
  • Pre-packing
  • Final packing

Manpower utilized                      4250/-           5%             2550/-       3%
Packaging                               850/-            1%             850/-       1%
Total Cost of Goods                    73100/-          86%            59500/-     70%




                                                                                          53
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


7.3     A typical comparative Value Chain of Acid Black 210

        For 1000 kg finished product with a sale output at Rs.170000/-

                                                                       Ideal by a Role
Particulars                           Current Scenario
                                                                       Model in the Industry

Raw Materials used
  • D.A.S.A
  • P.N.A                             112200/-         66%             98600/-     58%
  • H Acid
  • MPD

Chemicals Used
  • Caustic Soda
                                      8500/-              5%           5100/-      3%
  • Hydrochloric Acid
  • Sodium Nitrite

Allied Value Load
    • Ice                             5100/-             3%            3400/-      2%
    • Salt

Additive Overheads
  • Electricity
  • Fuel
                                      13600/-            8%            10200/-     6%
  • Material Handling
  • Pre-packing
  • Final packing

Manpower utilized                     8500/-            5%             5100/-       3%
Packaging                             1700/-            1%              1700/-      1%
Total cost of goods                   149600/-         88%             124100/-    73%




                                                                                          54
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


7.4      A typical comparative value chain of a plastic bag (Liner)

         For 1000 kg finished product with a sale output at Rs.80000/-


                                                                    Ideal by a Role Model
    Particulars                          Current Scenario
                                                                    in the Industry

    Raw Materials used
      • LDPE/LLDPE                       60000/-        75%         60000/-        75%
         Granules

    Chemicals Used
                                         2400/-          3%         2400/-         3%
      • Titanium Dioxide

    Additive Overheads
      • Electricity
                                          6400/-         8%         4000/-         5%
      • Material Handling
      • Pre-packing

    Manpower utilized                      1600/-        2%          800/-         1%
    Packaging                              800/-         1%          800/-         1%
    Total Cost of Goods                  71200/-        89 %        68000/-        85%


A study based on focussed group discussion and one to one interaction with the
participant sample units reveals that, the possibilities of achieving of ideal value
chain depends on the following factors.

     A corporate or Co-operative body of cluster units will effectively form a
      common purchase platform ensuring timely and competitive pricing of Raw
      Materials. The effective cost cutting could go down to 3-4%

     A study and guidance from technical BDS providers will ensure optimum
      consumption of raw materials, reducing wastage and excess consumption
      with better yield and ensure cost effectiveness by about 5-7%. This will further
      reduce the effluent load of the units.


     An optimum input will lead to better process control ensuring optimum yield.


     A better process control will reduce excessive use of additive chemicals use
      by at least 1-2%, reducing load on the value chain.




                                                                                            55
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




   The process control factors such as Ice, Salt etc will reduce by at least 1-2%
   A planned process will reduce the load on energy utilisation and controlling
    steps such as ENERGY AUDITS will help get better result which may reduce
    the load on value chain by at least 3%

   Automation and man power planning, will reduce the manpower utility load on
    value chain by at least 1%


   The cluster predominantly produces dyes, which is a colouring matter. The
    cluster also manufactures various chemicals, which yield a lot of wastage.
    These are by-products used in other industries in one way or the other. A
    study and positive effort will create a secondary market, affecting a load on
    the value chain.




                                                                                   56
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                          Chapter 8

                                  BDS Linkage Matrix
8.1     Overview of the BDS Market

All business enterprise need assistance to improve functioning and grow such
services known as Business Development Services (BDS).The vision of
developing markets for BDS has grown out of an emerging new paradigm in the
field of MSME promotion. There is growing emphasis on sustainable market
development and to attain this BDS market development is the right way. BDS
market development leads to employment generation, poverty alleviation and
ultimately leads to Local Economy Development (LED). MSMEs can be benefited
by BDS in the form of cost reduction, improved efficiency, Market, development,
increased sales and better productivity. There are three types of BDS namely:

Generic – These services are available easily and also availed in large numbers.
services like that of CAs and tax consultants that are transactional in nature fall
under this category.

Strategic – Services that are strategic in nature like marketing, testing, financial
linkage, project preparation fall in this category.

Embedded – Such services come bundled with some products or services.
Services like maintenance of machines, technical support etc. for which the user
does not have to pay anything extra come in this category.

Characteristics of BDS market development
   Focus on markets
   View clients as customers
   Market transaction relationship
   Greater potential for sustain ability – more limited use of subsidies
   Goal of sustainable markets
   Work with many – preferably private providers
   Roles: distinction between market facilitator and BDS providers
   Clear exit strategy
   Interventions focus on addressing market constraint

Source: Jeanne Downing

The underpinning rationale for BDS market development is self sustainability and
a clear exit strategy. Therefore the development process must have a clear focus
on the BDS market. The interventions should be such that a fee based
transaction mechanism develops between the stakeholders. This helps in
reduction of use of subsidies and thus develops a framework that has more



                                                                                   57
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


capability to sustain on its own. The difference between market facilitation and
BDS provisioning is that the donor / implementing agencies do not directly
provide services to the market but rather facilitate the provisioning of services
through BDS providers.

8.2      BDS Market structure

The BDS market predominantly consists of three segments, Public BDS, Private
BDS and Business management organizations. Apart from these there also exist
an “informal BDS” which is offered by the peer group of the entrepreneurs
without any fee and is not accounted for.

8.2.1 Public BDS:

These are Government organizations or organizations supported by the
Government that provide free or subsidized services.

Ahmedabad Textile Industry's Research Association (ATIRA)

ATIRA is an autonomous non-profit association for textile research. It is the
largest of its kind in India for textile and allied industries. It has a membership
base of 101 units spread all over India and abroad. Amongst this, 64 units are
involved in Ginning, Spinning, Weaving and Processing, 37 units are engaged in
manufacturing fibres, dyes, chemicals, instruments, equipments and machinery.

Type of Services:

The ATIRA provides the following services:

     Process optimization for improved process control leading to better quality,
      cost reduction and export promotion.
     Development of New Products, Processes for textiles, dyes and chemicals
     Design of New Instruments, Equipments and Machinery for manufacturing
      quality dyes & chemical and textile
     Conducting studies on Environmental Pollution, Management, Human
      Relations and Policy Aspects

Quality of services:

So far quality of their services is concerned one could assume that they provide
services as per the requirement of the customers. While interacting with the
beneficiaries we could assess that their services were judged to be satisfactory.
They have one of the best R&D facilities and trained professionals who could
cater to the requirement of the Dyes and Chemical cluster, Ahmedabad. It is
worth mentioning here that ATIRA is able to customise their services as per the
requirement of the cluster firms.



                                                                                   58
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Status of Utilisation:

The services of ATIRA is being properly utilised by the local firms. Since they are
located in an approachable distance they are being contacted by the cluster firms
for getting value added services.

However, being a Public Organisation their response time is slightly
prolonged which discourages many local firms for availing their services in times
of exigency. It is also important to mention here that the, services of ATIRA are
not being properly promoted for increasing awareness amongst local firms.
Therefore, units which are utilising their services for a long period are
approaching them repeatedly which is not happening with new firms. Being a
public institution they adopt a top-down approach in deciding the pricing pattern
(charges for providing different services). They charge relatively high price
compared to private BDS and there is no flexibility in their pricing
mechanism.

Demand-Supply situation:

While analysing the supply side perspective one could conclude that their
services are being utilised by the local firms (which are utilising their services for
a relatively long period of time). However there is scope to improve the demand
situation considering the fact that only 8-9% of the cluster firms are utilising their
services. The reasons for non-utilisation can be attributed to the following;

       response time
       lack of promotion
       cost factor
       non flexible pricing structure (charges for services)

What should be done?

Considering the above analysis the following things could be proposed for
improving efficacy of ATIRA’s services and making it accessible to the masses.

     Efforts should be made to create awareness amongst local firms about the
      services provided by ATIRA.

     BDS-MSME meet could be organised not only to promote ATIRA’s
      services but also to create awareness amongst concerned officials in
      ATIRA about the time pressure of the MSME’s so that the response time
      could be reduced in future.

     In the context of the cost factor it is recommended that the service
      requirements of the local firms can be bundled together for utilising
      ATIRA’s services.


                                                                                   59
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




Central Institute of Plastics Engineering & Technology (CIPET)

Technology Support Services (TSS) is an integral part of the activities of CIPET.
Project consultancy, technology consulting and assessment in the field of
Plastics are the important service portfolio of TSS. CIPET has successfully
accomplished consulting assignments in India and abroad. CIPET has created
complete infrastructure under one roof from testing stage to validation through
testing. It offers TSS in the following fields

Type of Services:

   Design CAD/ CAM/ CAE services
   Tooling and Mould manufacturing for Plastics
   Plastic product manufacturing
   Plastic Testing and Quality Control
   Calibration
   Pre-delivery Inspection
   Consultancy on Plastic projects

Quality of services:

So far quality of their services is concerned one could assume that they provide
services as per the requirement of the customers. While interacting with the
beneficiaries we could assess that their services were judged to be satisfactory.
They have one of the best R&D facilities, training centre and trained
professionals who could cater to the requirement of the plastic packaging
material cluster, Ahmedabad. It is worth mentioning here that CIPET is able to
customise their services as per the requirement of the cluster firms.

Status of Utilisation:

The services of CIPET is being properly utilised by the local firms. Since they are
located in an approachable distance they are being contacted by the cluster firms
for getting value added services.

However, services of CIPET are not being properly promoted for increasing
awareness amongst local firms. Regardless of this since there is a strong
presence of CIPET with all technological instruments and knowledge their
services are being extensively utilised. Being a public institution they adopt a top-
down approach in deciding the pricing pattern (charges for providing different
services). They charge relatively high price compared to private BDS and there
is no flexibility in their pricing mechanism.

Demand-Supply situation:




                                                                                   60
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


While analysing the supply side perspective one could conclude that their
services are being utilised by the local firms . However there is scope to improve
the demand situation, with more units coming to get the services offered by
CIPET. The reasons for few instances of non-utilisation can be attributed to the
following;

       lack of promotion
       cost factor
       non flexible pricing structure (charges for services)

What should be done?

Considering the above analysis the following things could be proposed for
improving efficacy of CIPET’s services and making it accessible to the masses.

     Efforts should be made to create awareness amongst local firms about the
      services provided by CIPET

     In the context of the cost factor it is recommended that the service
      requirements of the local firms can be bundled together for utilising
      CIPET’s services.

Indo German Tool Room (IGTR)

IGTR-Ahmedabad is equipped with state of the art machinery & imported
equipments from Europe. The Machines are made by trained manpower
developed by German experts. The Tool room is ISO 9001:2000 certified
organization & working with sound system and is managed professionally.

Type of Services:

       Design and manufacture of Tools & Dies Moulds, Jigs & Fixtures, Gauges
        etc and their appropriate use and maintenance.
       Modern production technology.
       Tool-related innovations for improved product design.
       Training and up gradation in Tool & Die Technology.
       Productivity improvement

Quality of services:

So far quality of their services is concerned one could assume that they provide
services as per the requirement of the customers. While interacting with the
beneficiaries we could assess that their services were judged to be satisfactory.
They have one of the best R&D facilities, training centre and trained
professionals who could cater to the requirement of the plastic packaging



                                                                                   61
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


material cluster, Ahmedabad. It is worth mentioning here that IGTR is able to
customise their services as per the requirement of the cluster firms.

Status of Utilisation:

The services of IGTR is being properly utilised by the local firms. Since they are
located in an approachable distance they are being contacted by the cluster firms
for getting value added services.

However, services of IGTR are not being properly promoted for increasing
awareness amongst local firms. Regardless of this since there is a strong
presence of IGTR with all technological instruments and knowledge their services
are being extensively utilised. Being a public institution they adopt a top-down
approach in deciding the pricing pattern (charges for providing different services).
They charge relatively high price compared to private BDS and there is no
flexibility in their pricing mechanism.

Demand-Supply situation:

While analysing the supply side perspective one could conclude that their
services are being utilised by the local firms. However there is scope to improve
the demand situation, with more units coming to get the services offered by
IGTR. The reasons for few instances of non-utilisation can be attributed to the
following;

       lack of promotion
       cost factor
       non flexible pricing structure (charges for services)

What should be done?

Considering the above analysis the following things could be proposed for
improving efficacy of IGTR’s services a nd making it accessible to the masses.

     Efforts should be made to create awareness amongst local firms about the
      services provided by IGTR

     In the context of the cost factor it is recommended that the service
      requirements of the local firms can be bundled together for utilising IGTR’s
      services.




                                                                                   62
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



Gujarat Industrial               &     Technical         Consultancy           Organization
Limited (GITCO)

GITCO – a premier Technical Consultancy Organization (TCO) - provides
consulting services to accelerate the growth of industrial and services economy
of Gujarat. Currently they offer services for generic as well as niche areas aimed
to ensure balanced growth and development.
Type of Services:

       Project Opportunity Identification Service
       Techno-economic Feasibility Reports
       Project Appraisal Service
       Environment Management Services
       Comprehensive Market Surveys
       Loan Syndication
       Technology – Search and Tie-up
       Environment Consultancy Services
       Detailed Energy Audit
       Technology Evaluation Studies
       Infrastructure Development Projects
       Training Programmes / Seminars / Trade Fairs
       Organization Development and Management Consultancy
       Patent Assistance

Quality of services:

The services of GITCO are in general opined to be at the best by cluster units
availing these. Being a unit promoted by the state Government in close
association with financial institutes and close proximity to the growth of Industrial
Areas, the services of GITCO are utilised to the best of availability

Status of Utilisation:

A situation making this as mandatory auditor and past history of cleaner records
makes GITCO one of desirable service provider in their speciality field. A lack of
desire to promote the activity and scope of increasing the scale, however
deters many units approaching GITCO.

Demand-Supply situation:

While analysing the supply side perspective one could conclude that their
services are being utilised by the local firms. However there is scope to improve
the demand situation, The reasons for few instances of non-utilisation can be
attributed to the following;

       lack of desire to promote the activity


                                                                                         63
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


       lack of interest for increasing the scale

What should be done?

Considering the above analysis the following things could be proposed for
improving efficacy of GITCO’s services and making it accessible to the masses.

     Efforts should be made to create awareness amongst GITCO officials for
      demand side

     A regular meet between the BDS and MSME will ease operational issues

Industrial Training Institute (ITI)

The Institute imparts training in 31 National level courses under the aegis of
National Council Of Vocational Training (NCVT). The total sanctioned seats in
these trades are 2504. Institute has 10 State Level Courses with seating capacity
of 352 under Gujarat Council Of Vocational Training (GCVT). Mainly to meet
local demand., apart from regular courses the Institute conducts the short term
courses for weaker section of society, School drop outs, for informal sector and
tailor made courses as per requirement of industry. Institute conducts such
training in more than 60 different trades.

Type of Services:

Technical Training

Quality of Service:

Institutes run by State Government in the interest of fulfilling social obligations.
The scheme is pushed to promote placement of students and training skilled
personnel for technical operations. These services provided by this institute is
found to be satisfactory by units availing them.

Status of Utilisation:

Units aware of the services provided by ITI are availing them. The only short fall
is a lack of promotion amongst the beneficiary units by institutional promoters.

Demand-Supply situation:

While analysing the supply side perspective one could conclude that their
services are being utilised by the local firms. However there is scope to improve
the demand situation, The reasons for few instances of non-utilisation can be
attributed to the following;




                                                                                   64
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


       lack of desire to promote the activity

What should be done?

Considering the above analysis the following things could be proposed for
improving efficacy of ITI’s services and making it accessible to the masses.

     Efforts should be made to create awareness amongst ITI administrators
      for demand side

     A regular meet between the BDS and MSME for creating awareness of
      the availability of services

Bureau of Indian Standards (BIS)

The Indian Standards Institution gave the nation the standards it needed for
nationalization, orderly industrial and commercial growth, quality production and
competitive efficiency. However, in 1986 the government recognized the need for
strengthening this National Standards Body due to fast changing socio-economic
scenario and according it a statutory status. Thus came the Bureau of Indian
Standards Act 1986 and on 1 April 1987, newly formed BIS took over staff
assets, liabilities and functions of erstwhile ISI. Through this change over, the
Government envisaged building of the climate of quality culture and
consciousness and greater participation of consumers in formulation and
implementation of National Standards.

Type of Services:

       Harmonious development of standardization, marking and quality
        certification
       To provide new thrust to standardization and quality control
       To evolve a national strategy for according recognition to standards and
        integrating them with growth and development of production and exports

Quality of services:

The BIS services in general are at their peak in the vicinity of the cluster. From
the supply side there is not much to analyse

Status of Utilisation:

Being the only institute certifying quality standards they are fully utilised and
nothing can be commented on the supply side of this aspect too. A non flexible
attitude in the field of documentation and interference of Bureaucracy in the
over all operations prevents MSME units from availing their services.



                                                                                   65
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Demand-Supply situation:

While analysing the supply side perspective one could conclude that their
services are being utilised by the local firms. However there is scope to improve
the demand situation, The reasons for few instances of non-utilisation can be
attributed to the following;

       non flexible in the field of documentation
       Bureaucracy in the over all operations

What should be done?

Considering the above analysis the following things could be proposed for
improving efficacy of Banks services and making it accessible to the masses.

     Efforts should be made to create awareness amongst local firms about the
      importance of registering their standards

     A regular meet between the BDS and MSME will ease operational
      hazards.

Commercial Banks:

All types of banking services present in the cluster area.

Type of Services:

General banking services

Quality of services:

The Banking services in general are at their peak in the vicinity of the cluster.
From the supply side there is not much to analyse

Status of Utilisation:

Being the only institute financing industrial activity they are fully utilised and
nothing can be commented on the supply side of this aspect too.

Demand-Supply situation:

While analysing the supply side perspective one could conclude that their
services are being utilised by the local firms. However there is scope to improve
the demand situation, The reasons for few instances of non-utilisation can be
attributed to the following;



                                                                                   66
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


       non flexible in the field of documentation
       Bureaucracy in the over all operations

What should be done?

Considering the above analysis the following things could be proposed for
improving efficacy of Banks services and making it accessible to the masses.

     Efforts should be made to create awareness amongst local firms about the
      different easy schemes.

     A regular meet between the BDS and MSME will ease operational
      hazards.

8.2.2 Private BDS – Organised:

A major player as a support unit for the clusters, the Business Management
Organisations (BMO) has a greater role to play in the betterment of member
units in the cluster. A critical analysis of the performance of the body of
associations however is indicative of many more functions that the member units
expect from them.

These are associations formed within a sub-sector for joint development and advocacy.
Such associations are mostly membership based. There are different associations
formed by the cluster members, based on the location, activity and utility of the
functions. Though all the associations have different bodies and activities, the
base function is that of imparting a fundamental useful services to the member
units.

Much is expected from these associations, by participating members, other than
the laid down conditions in the memorandum of associations. Since the
associations are run by elected body comprising of the members coming from
the units, the activities some times tend to get bogged up by the lack of time
available to the functionaries.

There are insignificant differences in the nature of services provided by
BMOs. The majority of associations are mostly limiting their activities to;

       Arranging seminars for some knowledge imparting sessions
       Arranging meetings with the regulatory
       Arranging recreational activities for representatives of member units
       Representation of grievances of the member units with the regulatory
       Arranging a data base of the member units
       Looking in to the infrastructural requirements of the member units.




                                                                                   67
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



       Arranging Environmental treatment of smaller units in the common effluent
        treatment plants. Few CETPs & their capacity is mentioned in Annexure
        VIII.
       Arranging social activities such as Blood Donation Camps and funding for
        noble acts, study scholarships etc.

However considering the requirements of MSMEs & their growth potential, it is
important that these local BMOs become more proactive and cater to the
changing requirements of the MSME sector.

Some of the areas where associations can play significant role are:

       Arranging a buyer seller meet.
       Arranging extensive study tours
       Arranging and managing a canalising agency BDS for the procurement of
        Raw Materials at the best price and shared financial cost.
       Making SPV to act as an order exchange in case of a bulk demand
       Arranging data bank for process control
       Arranging the facility of R & D
       Arranging the induction of process control with interaction with the
        technical BDS.
       Arrange Energy Audits as a primary functional eligibility
       Providing utility centre for the member units, where a one to one meet is
        made possible with the representative of BDS
       Help formation of BDS cluster with in the location
       Arrange for HRD activities by interacting with private BDS

Therefore, as part of this project we intend to ensure capacity building of the local
BMO’s and customise their services as per the requirements of MSMEs. In the
following section we discussed activities of the important BMOs operating in the
cluster.

Gujarat Dyestuff Manufacturers' Association (GDMA)

An Apex organization of Dyestuff Industry of Gujarat Consisting of about 80% of
the total units and contributing to 60% of the total export of dyestuff from the
country. The activities of GDMA are

       protects and promotes member units interest
       Assist in voicing the legitimate feeling
       Organize seminar and workshops on the subjects of pollution control,
        exports, quality control energy conservation and such other related
        subjects.
       Recognizing and rewarding exporters for their excellence in the field.




                                                                                   68
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



Gujarat Chemical Association (GCA)

Gujarat Chemical Association, established in 1947, is now on the threshold of a
new era in growth aided by six decades of experience and led by a new vision
under current dynamic leadership ably supported by a visionary team. It has
been playing a proactive role in leading the Chemical Industry in Gujarat over the
last six decades. Over the years GCA has emerged as an apex organization
voicing the concerns of the Chemical and Allied Products manufacturers and
Traders. GCA’s philosophy is encompassed in its missionary statement – “To
promote and foster the Development of the Chemical Industry for the betterment
of the society and ensure a perfect synergy between various forces of Research,
Technology, Commerce and Government.”

Gujarat State Plastic Manufacturers' Association (GSPMA)

Established in 1970, the Gujarat State Plastic Manufacturers' Association
(GSPMA) is one of the leading plastic manufacturers associations in the country,
representing Plastic Industry at State as well as Central level.

       Promotion of image of Gujarat based units in the country and has been
        functioning as a major link between the Industry & the Government.
       organizing technical seminars/ workshops on various subjects from time to
        time to update the knowledge of the members

Vatva Industrial Association - VIA

Vatva Industrial Estate, Ahmedabad, was set-up in the year 1968, when GIDC
initialized the industrial Revolution of young Gujarat State. It is one of the oldest
and largest estates in the state

Representation & Liaison

       With AMC for basic infrastructure facilities
       With State / Central govt. for administrative changes in govt. departments
        & procedures and in re-construction of industrial policies.
       For better facilities at Tel. Exchange, Police Station, Post Office etc. to
        benefit consumers & industries.

Lectures & Seminars

       Industrial Safety
       Engineering Drawing Reading
       Taxes – Budget
       Energy Conservation
       Training for Gardeners & Eco Awareness
       Packaging Procedure


                                                                                   69
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


       First Aid
       Computers & Internet
       Environment Protection
       Recycling concept and many more

Activity forums

       Participation & active involvement in meetings & committees at EDI,
        Viksat, Nehru Foundation, PCRA, GCCI, FIA, GSSIF, AMC etc.
       Tree Plantations.
       Vatva Young Entrepreneurs Forum
       Common Effluent Treatment Plant
       Annual Get together
       Charitable Trust run poly Clinic

Naroda Industries Association – NIA

Naroda Industries Association (NIA) was incorporated during the year 1968, to
provide a wide range of community and support services to its 600 members i.e.
mainly the Industries located in the Naroda Industries Estate. The Association
since its inception has continued to play a pivotal role in addressing the needs of
its Members.

Odhav Industries Association - OIA

Odhav Industries Association (OIA) is one of the oldest & highly recognized
Industrial Association among the Govt. Organization & industries.

OIA was established in 16-01-1981 by Late Shree Nanubhai Patel and many
other renowned industrialist of Odhav with the prime objective of encouraging &
spreading entrepreneurship attitude among the manufacturing sector, especially
SSI.

8.2.3 Private BDS – Un-organized:

These are private service providers specializing in different fields by virtue of
their knowledge and experience. They are catering to the requirements of the
MSME sector in different areas.

In the following section an attempt was made to assess the quality of private
BDS based on specified service areas as indicated in Table No 12.




                                                                                   70
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



Procurement service providers

Quality of services:

There is a wide scope of demand for the service, however there are not ma ny
providers in this segment. Not much can be therefore said about the quality of
services in this segment.

Status of Utilisation:

Absence of a consortia or a co-operative, prevents service providers attacking
this segment, due to a small market. This has however a wider scope in
operations. Awareness of the benefits of collective buying needs to be
addressed amongst the beneficiary units.

Demand-Supply situation:

Our study reveals overall pathetic situation in this segment of service, due to;

    •   Lack of awareness of the benefits of collective buying

What should be done?
We need to address this segment by arranging
    Workshops for creating awareness
    Formation of clusters with in the cluster for easy operations
Creation of a leadership in the cluster

Technical Service Providers

Quality of services:

The ease of availability of this segment in service providers has brought about a
boost in the industrial growth since 1980’s in the cluster. Overall we can assume
that the services are satisfactorily available.

Status of Utilisation:

In the instances where the promoters are non technical, a mutual trust between
the technical supporter and the promoter has brought about a wide scope of
availability of the segment of project implementation and production in the
manufacturing units. . It is however seen during our interaction with the
promoters that, a situation demanding specific technical know how, puts a
limitation of ease in the operational aspects of the services.

Demand-Supply situation:



                                                                                   71
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Promoting business activity and growth requirement has created a steady
pressure over the supply side for the segment of service providers. However
there are certain areas where more efforts need due to;

    •   a situation demanding specific technical know how

What should be done?

In order to improve situation of irrationality, efforts such as;

     A technical bank, or interaction with the association of technical service
      providers and MSME units to better understanding of demand.

Quality Certification and Registration Service providers

Quality of services:

This is one area where the supply side is stronger than the demand. MSME units
engaged in the activity of production of all three products are not aware of the
ease and quality of the services available. The overall situation in the service
providers segment for these services is very good.

Status of Utilisation:

Units either engaged in exports or catering to the quality requirement of their
product, avail frequently these services depending on the demand from their
market. Over all availability of these services is in ease compared to other fields
of manufacturing, since the service providers are in ample supply. There is
however a wider perspective in creation of demand side amongst units of
cluster.

Demand-Supply situation:

A easy supply side of the segment of service in this area of demand has however
the following short falls due to;

    •   perspective in creation of demand


What should be done?

In order to bring about a change in the situation for creating a steady and
increasing demand we can




                                                                                   72
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



   create awareness amongst the beneficiaries for the international and
     upcoming domestic requirements of this kind of certification for their
     products.
Equipment Servicing Providers/ Testing Laboratories

Quality of services:

There is an ample supply and ample demand for this type of service. Not much
can be said and done for this segment.

Status of Utilisation:

The services are amply utilised and provided with ease.

Demand-Supply situation:

A balanced demand and supply situation leaves a very limited scope except for
the awareness of the requirement of quality parameters in beneficiary units.

What should be done?

In order to ease out the growth of this segment, we need to;
     Workshop for the requirement of standard quality parameters.

Research and Development

Quality of services:

A total bleak situation amongst the micro and small segment of MSME units, has
put a question mark on the growth of supply side for this service. The service is
available with a good quality frame work, from amongst the technical service
providers.

Status of Utilisation:

Except for few medium units, no one seems to be interested in the availing of
this segment of service.

Demand-Supply situation:

A lack of demand has negated the scope of expansion of this segment of service.
The reason associated is mainly, apprehension amongst the beneficiaries
about the secrecy and transparency. The same comment can be made for the
supply side.

What should be done?


                                                                                   73
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




Involvement of neutral BMO or Public institute for

     Interacting with both sides easing out the apprehensions
     Analysing and imparting knowledge about the importance of this
      service segment for reduction of pollution load to the units

Environment & Energy Related Service Providers

Quality of services:

The supply side has to make a lot of breakthrough in the offering of this service
amongst the ignorant and reluctant beneficiaries. The quality of services
available is excellent keeping with the situation enforced by regulators,

Status of Utilisation:

The services of this segment come as a situation made compulsory by
regulators. The matter of survival forces units to avail the services. There is
however a common apprehension amongst the units availing this service about
the effectiveness, causing overall misunderstanding between the service
providers and the beneficiaries. A better understanding about the technical
implications of the regulation and the best availability of technology for
reducing the pollution load may effectively reduce the apprehensions and
improve upon interaction between the BDS and MSMEs.

Demand-Supply situation:

The ignorance of demand, results in the ineffective supply side in this segment.
The reasons are mainly due to;
   • technical implications of the regulation
   • ignorance about availability of technology for reducing the pollution
      load

What should be done?

In order to improve the supply demand adverse gap from the demand side, we
can stabilise the situation here by

     Conducting regular workshops in small section of the cluster
     Organising seminars with the help of regulators and BMOs and the BDS to
      impart correct knowledge of ease of technology

Financial Service Providers




                                                                                   74
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Quality of services:

More and more MSME units depend on the services of this type of providers,
speaking for the competency and ease of the supply side. There is however an
apprehension amongst the beneficiaries about the competency of service
providers due to the presence of a factor of in-consistency.

Status of Utilisation:

The ease and cost effective nature of this segment of service providers make
them accessible to the units. The apprehensive caution on the beneficiary
side is the only limitation for the segment.

Demand-Supply situation:

Increase in the business segment of dyes, chemicals and plastics with the steady
rate of industrial growth, has exerted pressure over this segment of service
providers. There is ample supply of the providers in the segment. The reasons
for a lack of confidence amongst beneficiary units is however due to,

    •   apprehensive caution on the beneficiary side

What should be done?

More can be done to improve situation such as;

     A rationalised approach from BDS-MSME interaction by providing a
        localised centre for availability of the service, with a clear understanding of
        requirements.

Administrative & Regulatory Services

Quality of services:

The service providers are in plenty and not under pressure to create a demand
for them. However the overall service quality is satisfactory reported from the one
to one interaction with the units.

Status of Utilisation:

A regulatory demand has automatically generated a supply-demand chain for the
service. The utilisation is therefore optimum


Demand-Supply situation:



                                                                                    75
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


The service providers are in plenty and effectively cater to the wider spectra of
market,. This is not a speciality field and hence the supply side matches with the
demand side.

What should be done?

We have not a scope to act in this segment except

      Making locational availability for the beneficiaries to ease the efforts for
       implementation,

Marketing Service Providers

Quality of services:
There is a wide scope of demand for the service, however there are not many
providers in this segment. Not much can be therefore said about the qualit y of
services in this segment.

Status of Utilisation:

Absence of a consortia or a co-operative, prevents service providers attacking
this segment, due to a small market. This has however a wider scope in
operations. Awareness of the benefits of collective buying needs to be
addressed amongst the beneficiary units.

Demand-Supply situation:

Our study reveals overall pathetic situation in this segment of service, due to;

    •   Lack of awareness of the benefits of collective selling


What should be done?

We need to address this segment by arranging

      Workshops for creating awareness
      Formation of clusters with in the cluster for easy operations
      Creation of a leadership in the cluster

Providing Logistics for local and international

Quality of services:




                                                                                   76
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


There is an ample supply and ample demand for this type of service. Not much
can be said and done for this segment.

Status of Utilisation:

The services are amply utilised and provided with ease.

Demand-Supply situation:

A balanced demand and supply situation leaves a very limited

What should be done?

Not much is left to do in this segment.

Industrial Relations training providers

Quality of services:

There is a wide scope of demand for the service, however there are not many
providers in this segment. Not much can be therefore said about the quality of
services in this segment.

Status of Utilisation:

Absence of a consortia or a co-operative, prevents service providers attacking
this segment, due to a small market. This has however a wider scope in
operations. Awareness of the benefits of human relations effecting
operational ease needs to be addressed amongst the beneficiary units.

Demand-Supply situation:

Our study reveals overall pathetic situation in this segment of service, due to;

    •   Lack of awareness of the benefits of Industrial Practices


What should be done?

We need to address this segment by arranging

      Workshops for creating awareness
      Formation of clusters with in the cluster for easy operations




                                                                                   77
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


In the following section an attempt was made to assess the (business
development) service market from the demand and supply perspective and
they have been evaluated as ‘high’, ‘medium’, and ‘low’.

                                    Table - 14
                               Demand – Supply Status

Sr.                                        Supply          Demand             Demand – Supply
                Services
No                                          Level           Level              In-equilibrium

1     Financial Service                 High             High                        -
      Providers
2     Technical Service                 Low              High                        √
      Providers
3     Quality Certification and         Low              Medium                      √
      Registration Services
      providers
4     Environment & Energy              Medium           High                        √
      Related Service
      Providers
5     Administrative &                  High             High                        -
      Regulatory Services
6     Procurement service               Low              High                        √
      providers
7     Marketing Service                 Low              High                        √
      Providers
8     Equipment Servicing               Medium           Medium                      -
      Providers
9     Testing Laboratories              High             High                        √
10    Research and                      High             Low                         √
      Development
11    Providing Logistics for           High             High                        -
      local and international
12    Providing Technical               Low              High                        √
      Training to plant
      operators
13    Industrial Relations              Low              High                        √
      training providers

N.B.: ‘√’ indicates existence of in-equilibrium, ‘-‘indicates equilibrium situation

Based on the above-mentioned demand-supply matrix the pressure points of the
cluster were derived as mentioned below;




                                                                                          78
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Pressure Points (corroborating high demand & low supply situation):

      •   Up-grade knowledge and tools for process and product technology for
          cleaner production
      •   Environmental issue as Increase pressure from regulators on effluent
          treatment with stringent norms
      •   Quality registration such as REACH, to compete globally and enhance
          export
      •   Reduction in value chain by energy saving
      •   Raw Material procurement
      •   Marketing of the products
      •   Training to workers and supervisors to improve productivity

Managing Low Demand High Supply situation:

      •   Cluster MSMEs are not aware about new product and process
          development though there is predominance of such services in the
          cluster; thereby indicting low demand high supply situation (please refer
          Sr. No. 10 in the above table).

8.3       Status in MSME

The manufacturing units under this project are largely in Micro and Small sector,
and only few have grown into Medium scale of manufacturing. The limitations
owing to the size restrict the entrepreneurs from hiring personnel for different
specialized services, which are otherwise very crucial for the formation, running
and progress of the unit. The entrepreneur is bound to seek the help from
external professional agencies, called Business Development Services (BDS)
providers. A study in the related fields of operations reveals a deep vacuum in
the services normally required by such SMEs. To illustrate some following table
formulates the FOCUS required in the services rendered by BDSPs.

The nature of problems faced by micro, small and medium enterprises in
the cluster is more or less same. However, the approach to address the
problems would ob will obviously vary due to the cost, capability and other
factors. The interventionary approach of addressing these problems
(Pressure Points) have been discussed below;




                                                                                   79
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


                                         Table – 15
                                     BDS Linkage Matrix


Area of
Services          Status               Micro Unit             Small Unit            Medium Unit


Production:
   • New technology                 Non Existent *        Limited                  Limited
     research                                             utilization *            Utilization
   • Procurement                    Non Existent          Non Existent             Not Utilized *
   • Process Related                Non Existent          Limited                  Limited
                                                          utilization              Utilization
Testing
  • Raw Material                    Limited               Limited                  In house *
                                    Utilization           Utilization
    • In Process                    Non Existent          Limited                  In house
                                                          utilization
    • Finished                      Limited               Utilized                 In house
                                    utilization
  • Mould Making                    Utilized *            Utilized                 Utilized
    (for Plastics)
Marketing:
  • Trade fair logistics        Limited                   Limited                  Utilized
                                utilization               utilization              Limited
   • Exports                    Non Existent              Non Existent             utilization
   • Indigenous                 Non Existent              Non Existent             In house
   • Access     to       Export Non Existent              Limited                  Utilized
     Markets                                              utilization
Organizational &
Technical
   • Patenting                      Non Existent          Limited                  Utilized
   • Registrations                  Limited               utilization              Utilized
                                    utilization           Limited
    • Consent for                   Utilized              utilization              Utilized
      Regulatory                                          Utilized
    • Procuring Quota               Limited                                        Utilized
                                    utilization           Utilized
    • Energy Audits                 Limited Utilized                               Utilized
                                                          Limited
    • Environment Audit             Utilized              utilization              Utilized
    • Quality Registrations         Non Existent          Utilized                 Utilized
      e.g. as (REACH,                                     Limited
      OKETEX etc)                                         utilization




                                                                                                 80
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Organization:
   • Skilled/Supervisory            Non Existent          Non Existent             In house
     Manpower Sourcing
   • Training
                                    Non Existent          Limited                  Limited
    • Counselling                                         utilization              utilization
    • Safety                        Non Existent          Non Existent             Non Existent
                                    Utilized              Utilized                 Utilized
Finance:
   • Business plan         Utilized                       Utilized                 Utilized
     Development
    Advocacy      Related Limited                        Utilized                 Utilized
     Matters    such    as utilization
     Taxations

* Non Utilized – Indicative of availability of this service amongst the BDS
  providers, however the units not utilizing this service.
* Utilized – Indicates that the units make full use of these services
* Limited Utilization – Indicates that the service is utilised only by units who are
  aware of the benefits
* Non-existent – Indicates that there is an absence of service providers for this
  skill, despite of demand from units. This may be due to a lack of awareness on
  part of BDS providers, or the potentiality is not being considered.
* In House – Medium Enterprises by their scale of operations, are able to make
  use of employed personnel for the utilisation of these services which otherwise
  are required to be hired on as and when require basis.




                                                                                                  81
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                    Chapter 9
                        Analysis of Business Operations

In this chapter we will be discussing broadly, limitations of the existing BDS firms
and Major issues & likely BDS led strategic solutions.

9.1     Limitations of existing BDS firms:

In this chapter we have extensively studied the existing status on factual grounds
revealed by the participating sample units for the limitations on availing the
services of the BDS units, existing in numerous capacities in existing market.
Most of the units falling under Micro section of enterprises are not even aware of
the existence of such services, nor is there enough effort to bring these services
in to the vicinity of their operations. The broad aspects studied by us pertaining to
Market, HRD, Raw Material, Technology, Infrastructure reveal that the units have
an apathy to availing these services with a general conception that these exists
only for the benefit of large units.

The underutilized BDS market owes to the following limitations
   1. Ignorance by beneficiary units
   2. Uncertain Costs
   3. No direct fiscal benefits visible
   4. Apprehensions about the reliability of BDSP
   5. Distance from units
   6. Willingness on part of enterprises

The apathy of BDSP to the potential market may be associated to,
   1. Apathy to growth owing apprehensions of competition
   2. Lack of foresight
   3. Undue contentment
   4. Apprehensions about the reliability of client
   5. Un-prepared to be customer friendly
   6. Large vacuum leading to wariness

In the backdrop of availability and limitations in scale of operations the BDSPs
are sectored in to two major groups
     Private BDS Providers
     Public BDS Providers

The Private BDS providers are imparting and marketing their specialized
knowledge, actively to the direct beneficiaries, which is SMEs. The Public BDS
providers mainly provide specialized services to the SMEs, in somewhat passive
mode. The interlinking of these beneficiaries to the SMEs is limited to the utility
value.



                                                                                   82
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


9.2          Major issues and BDS embedded strategic solutions:

In this section we have presented service area wise current status and likely
developments along with BDS and pressure points. A detailed study indicative of
the strengths, weaknesses in operations, opportunities available and threats to
counter act are tabulated for a detailed explanatory analysis as under. The
present study primarily caters to the requirements of the (business
development) service market in the dyes and chemical sector, as plastic
packaging has a very limited scope of cost reduction and profit
maximisation due to the following facts;

      i.      Majority of the cost is associated with raw materials, the pricing of
              which is based on very big players in the national and international
              market. In India pricing is controlled by almost a couple of units.
      ii.     The units have a micro level activity and hence most of the add on cost
              that may be saved comes from optimum utilisation of energy.
      iii.    Our study reveals that though the margin of profits are low as
              compared to the other types of units covering different range of
              products, the ample size market and a regular flow of increasing
              business, prevent any serious impact on the SME units in this sector.

      While we look at the segment of dyes & chemicals over the international
      scenario, it reveals that the operating and utilisation size of the units in this
      segment is very small in comparison with their Chinese counterpart. With the
      help of BDS providers there is a wide scope to reduce the cost of value
      addition.

      There is no significant difference in the service requirements of Dyes
      and Chemical units and their problems are more or less similar. Thus
      the analysis of business operation has been discussed taking a
      homogeneous standpoint for the Dyes & Chemical sector.

      Another point that highlights the outcome of study is in order to counter the
      difference in the scale of operations, the cluster needs to put up combined
      marketing platform to strengthen unit cost by removing duplication of
      operational cost in the value chain and quote suitably to win large
      international orders. A formation of consortia without disturbing the individual
      identity of the units, will lead to a combined effort in the marketing and
      overcome hurdles of smaller size for units. A guidance from BDS providers in
      this segment, will help decide the cluster members further outlay of such
      consortia.




                                                                                    83
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Delineating AOBO of the cluster;

In the following section a detailed analysis of business operation has been
done. Each functional area has been discussed from the point of view of
MSME followed by applicability of BDS perspective in those functional
areas. Moreover, each functional area has been sub-categorised and their
present status, likely developments, likely BDS involvement has been
worked out keeping the pressure points as the prime focus. This has been
presented in a tabular form below;

9.2.1 Procurement

Raw material related: Limitations arising about due to sheer size/scale of
operations of MSME units, put a limit to the capacity of buying raw materials as
the most economic price structure. Absence of big quantum of business, prevent
these units from effective negotiation of terms and price. Our study reveals a
desire by beneficiary units for the formation of a canalising agency, utilising a
common roof, with a common funding and secured data.

       BDS perception: An active role is sought by BDS provider in helping
formation of such canalising agency, with a broad outlook for capacity building of
MSME units. Public institutes like GITCO, financial supporters like SIDBI, banks
and BMOs will play a very important and active role here.

Area of           Current         Likely                   Likely BDS         Supportiv      Pressure
Service           Status          Developments to                             e Role         points
                                  be worked upon                              Player
Competitive       Non             Formation of             BMO’s              BMO’s          Commitment
Pricing           existent        Canalising               Public BDS         GITCO          from
Policy                            Agency                   like GITCO         SIDBI and      participating
                                                                              other          units
                                                                              Bankers        Creation of
                                                                                             data base
Ware              Non-       Formation of                  BMO’s              Financial      Security
housing           existent   facility to store             Canalising         Institutions
                             under common                  Agency
                             secure roof
Financial         Proposed Arrangement of                  Canalising         Financial      Rating of
Transactions      to be      common funding,               Agency             Institutions   participating
with member       formulated with secured data                                               units
units




                                                                                              84
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


9.2.2 Production

Technology Related: When we refer to the technology, we always look in the
product research for taking up the manufacturing activity. For a product where
technology is already available and easily made into the practice, there is nothing
to search about. However, for a new product research, MSME units have no
easy resource available. There another aspect of modification of technology for
effectively reduction in the cost. A third angle related to effective process control,
which helps optimum utilisation of raw materials and skills. In order to have
advantage of technological development and enhanced margin, industries need
this service. Our findings are indicative of an absence of such exchange of
technology between the BDS and MSME units. There are various reasons
associated for this vacuum, the most important being absence to fair fare
knowledge sharing between the technical support service providers and MSME
units.

        BDS perception: Our findings point us to the institutions engaged in
research activities for new products viz. academicians and professional research
institutes. An active participation by the ministry of industry to help creation of
cluster of such BDS provider and active involvement of public institutes such as
GITCO and related BMO’s, will help locate such services. A public private
participation will help formation of such a cluster and remove apprehensions
regarding transparency, information sharing, up-keeping secrecy and safety of
payment to the BDS.

Area of           Current         Likely                   Likely         Supportive         Pressure
Service           Status          Developments to          BDS            Role Player        points
                                  be worked upon
New Product       Non             Finding of New           Science        Department of      Transpare
Research          Existent        Products                 Institution    Industry           ncy of the
                                                           s such as      By way of Active   findings
                                                           colleges       Public Private
                                                                          Participation by
                                                                          funding
                                                                          institutes
New               Very            A continual              Associati      BMO’s              Apprehensi
Technology        limited         process of               on of          Public BDS         on about
                  almost          development on           technical      providers like     reliability in
                  non             existing product         BDS            GITCO with a       terms of
                  existent                                                funding from       result
                                                                          Industries         orientation
                                                                          Department,        and
                                                                          Government of      payment
                                                                          Gujarat
Environment       Very            Enacting GOOD Associati                 BMO’s              Information
Friendly          Limited         MANUFACTRING on of                      Public BDS         sharing


                                                                                             85
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



Process &         following       PRACTICE in              technical      providers like    and
Process                           general and              BDS            GITCO             secrecy by
Control                           controls in                                               participatin
                                  specific                                                  g units

9.2.3 Quality Analysis

Industry needs a lot of support role while establishing the standards of the
product manufactured. It needs establishing quality approvals. A quality
certification for the raw material used and finished product offered for marketing,
is very important and so is monitoring of process controls. There is a vacuum
from supply side, in majority of the issues except for quality testing.

       BDS perception: We find requirement of institutes like ATIRA, GITCO
and a host of private BDS, with a strong support role of canalising agency sought
above and BMO’s.

Area of           Current         Likely          Likely BDS                  Supportiv    Pressure
Service           Status          Developments to                             e Role       points
                                  be worked upon                              Player
Raw Material      Exists in       Quality         ATIRA,                      BMOs,        Proper
                  all units       certification   GITCO,                      Canalising   Sampling
                                                  Private BDS                 Agency
In Process        Limited         Establishing    ATIRA,                      Canalising   Extensive
                  Existence       Process control GITCO,                      Agency       follow up by
                                  points          Technical                                units
                                                  BDS
                                                  Association

Finished          Utilised by     Quality                  SPV or             ATIRA,       Recognition
Goods             all             certification by         BMO’s              GITCO        of
                  functional      SPV like BDS                                             Authorisation
                  Units                                                                    and
                                                                                           Sampling


9.2.4 Marketing

Individual units do have own sourcing skills and market developed for finding
outlets for their product. However there is a large area un-covered, with a
potential market for BDS providers. When we talk about a strong presence of a
canalising agency, we also look forward to locate BDS providers to bring the
units and buyers together. A regular domestic buyer-seller meet, trade fairs
inviting foreign buyers and a direct interaction of the units with the consuming
units is essential to be provided in form of a service.



                                                                                            86
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


       BDS perception: We identify a very effective role of MSME and Ministry
of commerce, with an active participation of the BMO’s. The public particiapation
in terms of funding such marketing events will boost up desire by participating
units.

Area of           Current         Likely            Likely BDS                Supportiv     Pressure
Service           Status          Developments to                             e Role        points
                                  be worked upon                              Player
Trade fair        Limited         Buyer Seller Meet BMO’s                     BMOs          Active
Logistics         Utilization     Locally           Canalising                Ministry of   Participation
                                                    Agency                    Commerce      And
                                                    SPV                       Ministry of   knowledge
                                                                              MSME          distribution
                                                                              (Market       to Units
                                                                              Developme
                                                                              nt
                                                                              Scheme)

Export            Limited         Local meets with         SPV                Ministry      Active
                  Utilization     foreign buyers           BMO                level         Participation
                                                                              Organisati    by Units and
                                                                              ons for       awareness
                                                                              sharing       programs
                                                                              funding

Domestic          Under           Interaction with         SPV                BMOs          Logistics
Marketing         proposal        Consumers                BMOs
                                  clusters like
                                  leather cluster in
                                  Chennai/Kolkata
                                  require dyes for
                                  leather


9.2.5 Certification and Registration:

In case success is sought after by successfully administering the services as
mentioned in section IV, this will automatically create a demand for the support of
the product manufactured and the unit’s identity to fairly compete against large
players. There is a wider recognition required for the product by way of
registration of features, constitution, and patenting process. It also needs to
address issues like obtaining consents from different regulators, international
quality approvers, seeking availing fuels at a cheaper rates by way of obtaining
registration under government quota as also energy audits for effectively
reducing cost. These are provided by BDS engaged in speciality technical
matters. A mixed presence in these segments need a lot of attention.


                                                                                             87
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




        BDS perception: Public and private BDS providers need a better
interaction by awareness programs under the strong influence of BMO’s and
ancillary institutes like EDI.

Area of           Current         Likely                   Likely BDS         Supportiv     Pressure
Service           Status          Developments to                             e Role        points
                                  be worked upon                              Player
Product           Limited         Creation of              Technical          BMOs          Imparting
Registrations     Utilisation     awareness                Public BDS         Ancilliary    acceptance
                                  amongst                  like GITCO         institutes    level in
                                  stakeholders             Private BDS        like EDI      benefiting
                                                           specialised                      units.
                                                           in the field of
                                                           Registration
Patents           Limited         Creation of              Technical          BMOs          Very limited
                  Utilisation     awareness                Public BDS         Ancilliary    scope in the
                                  amongst                  like GITCO         institutes    area of this
                                  stakeholders             Private BDS        like EDI      cluster and
                                                           specialised                      the cost
                                                           in the field of                  effectiveness
                                                           Patents                          will be
                                                                                            prohibitive
                                                                                            some times
Different         Utilised by     Technical data           Environment        GITCO         Arriving at
Consents          all             development to           related            BMOs          the optimum
/approvals        concerned       match the needs          Public BDS/        ATIRA         level of
                                  of manufacturing         Private BDS                      production
                                                                                            which will
                                                                                            help attain
                                                                                            logistics
Procurement       Limited         Creating                 Private BDS        BMOs          Working out
of Quota of       Utilisation     awareness                specialized                      details of
Fuels/ Raw                        amongst stake            in the field of                  cost
Materials                         holders by               liaison                          effectiveness
                                  continuous                                                with the
                                  interaction                                               beneficiary
                                  through                                                   units.
                                  seminars/worksho
                                  ps
Quality           Limited         Study grouping of        Private BDS        BMOs          Liaison with
Registrations     Utilisation     relevance in world       specialized        Ministry of   the ministry
                                  trade                    in quality         Industry      for creating
Like REACH,                                                registration       and           understandin
OKETEX                                                     required           commerce      g of the need
ISO                                                        foreign trade      by way of     for


                                                                                             88
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



Etc                                                        Public BDS         funding       enhancemen
                                                           like BIS           and           t of foreign
                                                                              subsidising   trade
                                                                              aspiring
                                                                              units in
                                                                              foreign
                                                                              trade
Energy            Rarely          Making this a            GEDA               BMOs          Imparting
Audits            Utilised        fundamental              GITCO              Minisry of    transparency
                                  qualification for        ATIRA              Energy by     amongst
                                  availing                                    way of        stakeholders
                                  memberships of                              funding
                                  BMO,Creation of                             and
                                  awareness                                   subsidies
                                  amongst
                                  stakeholders


9.2.6 HR and Training:

Industry can not survive with the mechanised set procedures alone. There is a lot
to be recognised in non-technical aspects such as HRD, training skilled/non-
skilled personnel, a humanitarian approach in dealing with the problems related
to counselling with labour, certain advocacy related matters involved in to the day
to day matters. These constitute a large part of administration of unit. Our
findings reveal mixed presence of BDS providers in this segment. An exposure
visit by the cluster members to other identified clusters located in distant places,
will also impart a lot of knowledge sharing.

      BDS perception: Private and public BDS, Ministry of labour welfare and
BMO’s will have a larger share in providing adequate services in this segment
under the strong supervision of BMO’s for monitoring large scale funding activity
in PPP.

Area of           Current         Likely                   Likely BDS         Supportiv     Pressure
Service           Status          Developments to                             e Role        points
                                  be worked upon                              Player
Human       Very rare             Direct interaction       Institutes         BMO’s         Arrangement
Resources                         with the                 Private BDS                      of creation of
Development                       educational              engaged in                       data base of
                                  institutes and           the field of                     aspiring
                                  sourcing agencies        placements                       service
                                  Creating                                                  providers
                                  speciality portals
                                  in the field
Training of       Limited         Creation of onsite       Private BDS        BMOs          Creation of


                                                                                             89
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



skilled/non       Utilisation     training groups          providers          Ministry of   training
skilled                           with in the BDS          Public             labour        groups and
personnel                         for direct               Institutes         welfare by    planning for
                                  interaction with         Ministry of        way of        the activity in
                                  stakeholders             Labour             subsidising   different
                                                           welfare            and           locations
                                                                              funding the
                                                                              activity
Counselling       Not             Creation of a cell       Ministry of        Ministry of   Creation of
To                Utilised        in the cluster,          Health             Health        cell with the
implement                         where counselling        Ministry of        Ministry of   BMO or
worker                            for the problems         Labour             Labour        Industrial
friendly                          can be sought, to        Welfare            Welfare       Area
schemes                           reduce                                      By way of     network
                                  apprehensive                                allocation
                                  reactions                                   and
                                                                              funding
Advocacy          Limited         Creation of a cell       Regulatory         BMOs          Interacting
Related           Utilisation     for interaction          Authorities                      with the
matters                           with regulatory          controlling                      concerned
                                  bodies for               activities of                    ministry for
                                  submission of            units                            creation of
                                  documentation                                             such cells
                                  Creation of a cell       Private BDS                      within the
                                  where in the                                              BMOs
                                  private BDS                                               premises
                                  providers interact                                        Inviting
                                  with the                                                  private
                                  stakeholder units,                                        BDSP to
                                  nearer to the                                             extend area
                                  cluster units                                             of operation.
Exposure          Non             A visit to other         Private/Publi      BMO           Interaction
Visits            Utilised        centres                  c BDS                            with
                                  manufacturing            engaged in                       successful
                                  similar products,        the field of                     units from
                                  to interact              technical                        other centres
                                  discussing               services                         for sharing
                                  common issues
                                  and positive goals
                                  achieved




                                                                                              90
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


9.3     Areas for deciding advantages and limitations of the Public/Private
        BDS:

A detailed study mapped above brings out certain comparison between the
public and private Business Development Services Providers. While undertaking
the enhancement of the BDS market for better interaction and availing services,
these must be taken in to consideration, while we plan to assign different actions.

                                         Table – 16
                                   Public v/s Private BDS

        Private BDS Provider                                   Public BDS Provider
   Advantages          Limitations                        Advantages            Limitations
  • Creation out • Limitations       of             •   Creation out of the • Area            of
    of acquisition    skilled                           social obligations      operations are
    of knowledge      personnel                         of       Regulatory     restricted due
  • Direct          • Limitations    of                 bodies / Industrial     to location
    interaction       investment     in                 Departments           • Specific
    with        the   equipments                    •   Unlimited     skilled   allocation of
    SME’s        on • Apprehension                      personnel               personnel to
    one to one        interlinked    to             •   Unlimited     budget    interact
    basis             client                            on investment in        restricts long
  • Recognition     • May          get                  technical               term
    acquired by       actively                          equipments              relationships
    providing         involved       in             •   Recognition
    services over     client business                   acquired with the
    time scale                                          enactment          of
                                                        services
                                                    •   Will not voluntarily
                                                        be a part of clients
                                                        business activity
                                                    •   More     trustworthy
                                                        on basis of track
                                                        record




                                                                                         91
  Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


  9.4     Who Does Who Pays Matrix:

  On the basis of our study, we have identified a crucial linkage of the cluster
  stakeholders and the presentations is made as under

                                            Table – 17
                                           WDWP Matrix

                                                                                     Payment
BDS Function                     Who does?                      Who pays?
                                                                                     mechanism

Production:

New technology Research              •   Private BDS                 •   SMEs          •   Direct
Procurement                          •   None                        •   N/A           •   N/A
Process                              •   None                        •   N/A           •   N/A
Testing
   - Raw Material                    •   Public BDS (e.g.            •   SMEs          •   Direct
                                         ATIRA)
                                     •   Private BDS                 •   SMEs          •   Direct
  - In Process                       •   Public BDS (e.g.            •   SMEs          •   Direct
                                         ATIRA)
                                     •   Private BDS                 •   SMEs          •   Direct
  - Finished                         •   Public BDS (e.g.            •   SMEs          •   Direct
                                         ATIRA)
                                     •   Private BDS                 •   SMEs          •   Direct
  - Mould Making                     •   Public BDS (e.g.            •   SMEs          •   Direct
    (for Plastics)                       CIPET)
                                     •   Private BDS                 •   SMEs          •   Direct


Marketing:

  • Trade fair logistics             •   Private BDS (e.g.           •   SME’s         •   Direct
                                         B2B portals)
                                     •   Public BDS                  •   SME’s         •   Subsidy
                                         (e.g.Chemexil etc)                            •   Direct
  • Exports                          •   Private BDS                 •   SMEs          •   Direct
  • Indigenous                       •   None                        •   N/A           •   N/A
  • Access to Export                 •   Private BDS                 •   SMEs          •   Direct
    Markets




                                                                                             92
  Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                                                                     Payment
BDS Function                     Who does?                      Who pays?
                                                                                     mechanism

Organizational &
Technical :

  • Patenting                            • Private BDS              •    SMEs          •   Direct
                                         • Public BDS (e.g.         •    SMEs          •   Direct
                                               GITCO)
  • Registrations                        • Private BDS              •    SMEs          •   Direct
  • Consent for Regulatory               • Tech Private             •    SMEs          •   Direct
                                           BDS
  • Procuring Quota                      • Private BDS              •    SMEs          •   Direct
  • Energy Audits                        • Private BDS              •    SMEs          •   Direct
                                         • Public BDS (e.g.         •    SMEs          •   Direct
                                           GEDA)                                       •   Subsidy
  • Environment Audit                    • Private BDS               •   SMEs          •   Direct
                                         • Public BDS (e.g.          •   SMEs          •   Direct
                                           GITCO)
  • Quality Registrations                • Private BDS               •   SMEs          •   Direct
    such as (REACH,
    OKETEX etc)


Organization:

  • Skilled/Supervisory                  • Private BDS              •    SMEs          •   Direct
    Manpower Sourcing
  • Training                             • Public BDS               •    SMEs          •   Direct
                                           (e.g.CIPET)
  • Counseling                           • None                     •     N/A          •   N/A
  • Safety                               • BMOs                     •     SMEs         •   Direct
                                                                         /BMOs

Finance:

   • Business plan                   •     Private BDS               •   SMEs          •   Direct
     Development
   • Advocacy Related                •     Private BDS              •    SMEs          •   Direct
     Matters such as
     Taxations

  The Direct mode of payment in indicative of that of the payment of
  benefiting unit is going directly to the BDS provider and not through any
  nodal agency.



                                                                                             93
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


9.5     Focused Group Discussion:

Our Focused Group Discussions revealed all the above SWOT characteristics
and helped identifying CORE areas where an upwards availability of opportunity
manifolds exists in the required interlinking of the Clusters.

The participating units both from SMEs and BDS listed out the specific areas of
concentration as listed in Annexure III

Major outcome from the FGD is as under, however this is not listed in order of
weight age but as per the points raised by participants during discussion. This
will be utilised for coming up with current pressure points mentioned in Section
9.6

1. Create awareness amongst the enterprises.
2. Environment related issues for the ETPs and correlation with regulators.
3. Obtain quality registrations such as REACH to compete in the international
      Markets
4. Need education for cleaner production amongst SME’s.
5. Ensuring cost reduction in achieving model value chain by energy savings.
6. Automation to be in Industry to avoid human errors
7. Affordability of services need lot of education/persuasion
8. A detailed study on man-power management,
9. Creation of a raw material bank,
10. Creation of a co-operative society for marketing,
11. Incorporation of a separate company for marketing the products,
12. Creation of Bi-product chain and marketing there of
13. A Single Window service should be availed




                                                                                   94
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



9.6     Current Pressure Points:

Based on the FOCUSSED GROUP DISCUSSION and ONE TO ONE
interaction of the sample units, we have arrived at the following pressure
points.

9.6.1 Environmental issue:

The primary treatment has to be carried out by the units in order to meet inlet
norms describe by the CETPs and CETPs have to meet the norms set up by
GPCB. Majority of the units are not matching these CETPs Inlet norms or units
outlet norms. Their primary treatment is not up to the mark to attain these CETPs
norms and also their production process is faulty. Due to this , CETPs are also
unable to attain norms of GPCB and now GPCB has pressurised to attain these
norms or close down the units which are more polluting the environment. By
providing knowledge about better production processes and good primary
treatment process, this environmental issue can be reduce and solve in near
future.

9.6.2 Cleaner Production:

Most of the units are not getting proper yield out of their processes and thee is
high wastage of raw material. This is because lack of technical speciality, experts
and knowledge for the production process. Cleaner Production is an overall
approach to business management. It involves changing attitudes and rethinking
products and process. However cleaner production is not only about
manufacturing and production. It covers all processes, products, services and
their impacts including planning and design. It has been proven that
organisations can actually protect the environment and save money. By applying
cleaner production approaches they can discover how to increase efficiency and
reduce waste and pollution.

One of the main drivers for improving environmental performance has been that
organisations can no longer afford to simply treat and disposes off their waste;
the focus has shifted to reducing waste at source. Cleaner production often
focuses on raw material, waste and energy but it is not just an environmental
imitative – it is a combined environmental and business strategy. One of it’s



                                                                                   95
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


basic promise is that it improves efficiency and productivity. It enhances
community and employee heath and safty.

9.6.3 Energy Utilisation:

It has been studied by the BEE, most of the units are consuming extra energy
and there is lot of scope to reduce energy utilization. About 60 % of the
organisations in this cluster are consuming 40000 units per annum. There is
wastage of energy both at works and at offices. This high energy utilisation can
be reduced by Energy Audits and consultation in energy areas. As per value
chain analysis, energy consumption is around 8 % of the cost of Material.

9.6.4 Raw Material Procurement:

There is stiff competition in the domestic as well as International market. To
compete in the market, all have to be cost effective. In dyes and chemicals, 75-
80% cost is of Raw material and plays a significant role for the final costing.
Quality raw material at cheaper price will help to compete in the market and
reduce effluent load. For solution of this issue, one consortia or society has to be
formed under which bulk buying facility is provide.

9.6.5 Quality Registration:

European Regulation introduces REACH to ensure a high level of protection from
the risks that chemical may pose to human health and the environment, through
the generation and dissemination of information on chemicals, in particular safety
information. Ideals with the Registration, Evaluation, Authorisation and
Restriction of Chemical substances.

Majority of the Export is to the European Market and to send the material,
organisation has to be REACH compliance. Most of the firms are not aware
about the procedure and norms for the REACH. To compete in the European
market they have to be REACH compliance.




                                                                                   96
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


9.6.6 Training to workers and supervisors

Productivity and Quality improvement can reduce the cost effectively. By
providing proper training to the workers and supervisors can improve the
process. Also there should be adoption of best practices to improve efficiency
and effectiveness.

9.6.7 Marketing

All micro and small companies are facing difficulty in direct marketing; they are
doing indirect export through traders. Also they have problem of Bulk order, they
can not provide the demand in bulk. This can be solved by forming and all cluster
members can sell together in bulk and get proper price for their material.




                                                                                   97
    Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                               Chapter 10

                               SWOT Analysis of the Cluster

    Based on the interaction with the cluster stakeholders including BDS and findings
    of the study, a detailed SWOT analysis of the cluster has been done as under;

                                                Table – 18
                                              SWOT Analysis

Stakehol             Strength                 Weaknesses           Opportunities            Threats
  ders
SMEs     •       Low operational          •     Lack of           •    Consortia       •   Imparting
                 cost                           innovation in          formation           training
             •   Direct access to               product and            for Raw         •   International
                 the opportunities              process up             Material            Quality
             •   Ease of                        gradation              procureme           norms i.e.
                 operations                     (cleaner               nt                  REACH, ISO
             •   Excellence in                  production)       •    Energy          •   Extinction in
                 crisis                   •     No technical           conservati          case of
                 management at                  Solution to            on                  failures of
                 micro level                    Environment       •    Co-                 Upgrading,
             •   Strong base for                Pollution              operating       •   Automation
                 producing various              problem                with the
                 categories of            •     Low                    Public BDS
                 dyes for different             productivity      •    Formation
                 end use                        due to non             of
                 applications                   skill base             consortium
                 (Acid, Direct                  worker                 for
                 disperse, Azoic,         •     The industry           marketing
                 Reactive and VAT               on account of          in cluster
                 dyes etc.)                     its small size,        due to a
             •   Major raw                      finds it tough         sheer
                 material                       to compete in          controlled
                 component                      high margin            size
                 sources within the             products with
                 country                        global players

BDSP         •   Ease               in •        Apathy to         •    Awareness       •   Lack of
(Private)        communicating                  growth                 to MSMEs            credibility from
             •   Direct access to •             Un-                    about               SMEs due to
                 the market                     willingness to         different           non
             •   Comparatively                  market                 services will       confidence
                 higher flexibility in          services               increase        •   Presence of
                 business terms                                        BDS                 BDS from



                                                                                                  98
   Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                                                      providers           outside the
                                                                      business            cluster with
                                                                                          higher
                                                                                          competence in
                                                                                          future
BDSP        • Availability of            •    Delay in           •    Act as a        •   Aversion by
(Public)      personnel and                   imparting               bridge              SMEs due to
              equipments                      services                between             red-tapes
            • Recognition by the         •    tendency to             stakeholder     •   Loosing battle
              regulatory bodies               ignore                  s                   with the agile
              for reliability                 specific           •    Act as              private BDS
            • Comparatively                   problems                counsellors     •   Higher degree
              higher credibility         •    unable to               for specific        of flexibility
              than private BDS                access                  cluster             and dynamism
              for certain areas of            clients            •    Obtain a            in private BDS
              services                   •    lack of                 recognition         for business
                                              willingness to          from                terms
                                              market                  overseas
                                              services                regulatory
                                         •    Lack of
                                              flexibility in
                                              business
                                              terms
BMO         • Strong presence in         •    Pre-               •    Invite       •      Aversion of
              the cluster area.               occupancy of            expertise to        member units
            • Better organising               leadership              attend to           out of lack of
              capacity                        brings about            the core            interaction
            • Better interaction              limitation of           issues
              with the regulators             attending to       •    Share
              in presentation of              core issues.            acquired
              problems of                •    Lack of                 knowledge
              member units                    attention               with the
            • Visionary                       distances               member
              leadership                      leadership              units
            • Good                            and BMO            •    Availability
              infrastructural and             from real               of funds and
              financial resources             needy units             tech support
                                         •    Internal                from
                                              dynamics of             Govt/Multila
                                              key                     teral
                                              functionaries           Organisatio
                                                                      ns for
                                                                      industry
                                                                      level action




                                                                                                 99
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                         Chapter 11

                                        Cluster Map

There are various stages and agencies involved in the manufacturing of cluster
items. A simple unit manufacturing either dyes/chemicals (including packaging
material) of the cluster is aided and effectively controlled by many players
actively or passively involved in the business transacted during the tenure of
operations.

The dyes/chemicals manufacturers are of various types, like only manufacturers,
manufacturers and exporters, job workers who convert the raw material to semi
finished/finished as per the requirement of big units, some times specialist dryers
involved only in few intermediate stages of production. These are aided by
various passive units, which have indirect interest in the operation of the SME in
cluster. They are the supplier’s link in raw materials and marketing links in the
sales of products. Apart from these, make their presence felt silently and
effectively are the SERVICE PROVIDERS for the aid of BUSINESS. The
linkages provided by them, to preview few are, product development,
environmental, advocacy related etc.

The public units in BDS are listed in Annexure VII of the report, which explains
the role of units like Indo German Tool Room, providing services for tools
development to plastic manufacturers, CIPET which provides technology, ATIRA
which takes up comprehensive study of the effluents and finished product as well
as units like GITCO who have an entire package in financial services to offer
besides environmental audit.




                                                                                   100
                                                                   CLUSTER MAP
      Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



Private organise BDS                                           Private Un-organise BDS                                               Public BDS
      (BMOs)                                                      Quality Regn.          Financial /      Technical
                                         Environment &                                                                            GITCO           ACTI
                                         Energy Related           REACH / ISO              Legal          Consul tant
GDMA GCA GSPMA VIA
 OIA NIA ACTI CETPs
                                                                                                   Export                         ATIRA           CIPET
                                                          Testing
                                                         Laboratory                              Consul tant

                                                                                                                                           IGTR


     Raw Material
      Suppliers
                                                                                                                                     Marketing
                                                                                                                                      Agents
     Suppliers of
     Acce ssorie s
                                                                                                                                     Retailers

       Machine                               Dyestuff                   Chemical                    Plastic
       Suppliers                              Firms                      Firms                     Packaging
                                                                                                     Firms                            Traders

      Packaging
   Material Suppliers
                                                                                                                                     Exporters




                        BIS          GPCB                ITI                                    NSIC       Sales        Central     GEDA
                                                                           Institutions                     Tax         Excise




                              A thin border rectangular box for a group of stake holders

    A dotted border rectangular box for showing a poorly functioning Stake holder
                                   A thick Arrow shows a well developed linkage
                                A dotted Arrow shows a poor developed Linkage                                                                    101
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                         Chapter 12

                                       Cluster Vision

Vision:


“To enhance the networking among the MSMEs & BDS in the cluster to
boost the business potential of all stake holders sustainably”

The long run objectives of the project would be;

•   To help the Dyes & Chemicals Cluster particularly MSME in achieving
    enhanced 3600 performance both in terms of technical and commercial
    functions. Specifically, for attending to the reduction in environmental issues
    and a reduction in the value chain.

•   To help develop a healthy BDS market, to attain an increase in the BDS
    Market @ 15% , particularly by creating platforms to promote BDS in the
    areas, which are currently not provided by existing BDS providers. This would
    enable the sector to have access to such services.

•   To bring about a sustainable common platform for MSME and BDS to work
    more closely and on a mutually affordable commercial platform.

•   To create a sustainable and stand- alone viable mechanism through the
    participation of all clusters actors namely, MSME units, BDS Providers and
    facilitating agencies like ours.

The one on one and FGD have led to the tremendous opportunity for the
implementing agency for creating small cluster groups with in the specified
clusters. There are endless tasks ahead. With a specific focus on such small
clusters, identified with the help of benefiting BMOs, various programs can be
undertaken with the clusters and regrouping them to yield specific growth.

Strategies:

    •   Cleaner production – First there should be awareness to the
        manufacturers about the cleaner production and its advantages to the
        firm. Experts from the industry will guide to firms about their process
        improvement and get best yield. Also there will be some 3-5
        implementation of cleaner production and make a role model.




                                                                                   102
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


    •   Environmental Issue: Make awareness about the best practices to
        reduce environmental pollution. Also there will be ole model development
        in the cluster. 2-3 workshops will help cluster to improve their treatment
        plant efficiency.

    •   Quality Registration: Seminar on REACH and 2-5 REACH registration in
        the cluster will help to increase BDS growth with MSMEs’ export growth.

    •   Energy Saving: Energy conservation seminar and 3-5 energy Audits will
        certainly improve the energy utilisation properly.

    •   Raw Material: To compete in the International and domestic market,
        planning is to form a consortia of some cluster member and procure
        material in a bulk at cheaper rate. They have the negotiation power due to
        bulk buying.

    •   Training to workers and supervisors: On job training and seminar requires
        improving the productivity and quality.

    •   Marketing: Formation of consortium and some joint development for
        marketing will help to the cluster members.


Managing Low Demand High Supply:

    •   Awareness about R & D: Industry experts and technocrats will guide
        these firms to improvement in process and also suggest for the new
        product development. Workshops on new product and process
        development will improve the R&D in cluster.




                                                                                   103
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                         Chapter 13

                                    Short term Goals
SMEs under the purview of the cluster study are eventually finding them under
the pressure to impart immediate attentio n to the following points for the survival
and betterment.

There is already an overrated production capacity with an under current for price
competition and tremendous pressure on profitability. These apart, the MSME
units face various challenges in basic three sectors. Following are the short
term goals for the first year in the order of importance, looking to the
pressure points and FGD:

    1. Creation of Awareness: This is the basic area of concentration for the
        implementation of this project. Unless the units benefiting from the
        implementation of the project as well those who will provide these services
        for a smoother implementation of the project viz. BDS providers are made
        aware of their factual requirements and shortfall, the project can not lead
        to success. Hence it is our foremost priority to create awareness amongst
        the players, by establishing linkage through, print material, seminar and
        workshops.

    2. Environment issues: This is the most critical target area, which has
       effect of deciding about the existence of unit members of the cluster. With
       more and more stringent action plans, units who have already registered
       with the common effluent treatment plants, find it increasingly difficult to
       give an input meeting the norms. An immediate action is therefore
       required to train, and execute treatment procedure by help of technical
       consultants.

    3. Cleaner Production: A process by which most PHARMA units are put on
       the road of improvement and global competency is GMP. A similar
       situation has arrived in dyes/chemical sector. The units need to observe
       now a cleaner production norm, which will not only help in reducing the
        load on value chain but help reduce the pollution load.




                                                                                   104
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


    4. Energy Conservation: Most units falling under Micro and Small segment
        need immediate attention to the Energy Audits. This has to reduce the
        load on their value chain in the competitive market, making their products
        viable for the operations of the units.

    5. Quality Registration: Another priority area where the units seek to
        achieve solution is regarding quality registrations for upcoming restrictive
        action by the European Union member countries. REACH which is a
        registration procedure; making every unit's product, registered with all
        technical information, for the sale through European Port is to be taken up
        by all exporting units. The future is bleak if other markets decide to follow
        such norms.

    6. Formation of Raw Materials Data Bank: In order to acquire ability to
       compete larger players, small enterprises find it difficult to procure raw
       materials at a competitive rate. Deficiency in bulk purchasing prevents
       these from availing higher discounts and credits. Formation of a raw
       material data bank will help these units to procure material at a rate
       equivalent to the bigger players and bring about cost effectiveness.




                                                                                   105
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




                                                                           Annexure: I

List of stakeholders interacted during the Diagnostic Study
Phase:
(a)   List of Firms


Sr.     Name of the Firm                 Products                   Point of Contact
No
1       Mahak Dye Chem                   Reactive Dyes              Mr. Ashish Gandhi,
        Industries                                                  9426085221
2       Alfa Industries                  Dyes and Pigment           Mr. Anil Agrawal, 079-
                                         Powder & Paste             5831496
3       Jemby Chem Limited               Dyes and Dyes              Mr. Bhupendra Patel, 98250
                                         Intermediates              64400
4       Amar Dyes                        Acid & Reactive            Mr. Nikunj Parsana, 079-
                                         Dyes                       25890005
5       J Dye Chem Ind.                  Reactive Dyes              Mr. Nikhil Gandhi, 079-
                                                                    25891668
6       Rasayanam Industrial             Reactive Dyes              Mr. Sanjay Padia,
        Product                                                     9825083046
7       Amardeep Dyes &                  Reactive Dyes              Mr. Mehul Patel, 079-
        Intermediates Ltd                                           25831114
7       Bharat Dye chem                  Acid / Direct Dyes         Mr. Ramesh Patel, 079-
                                                                    25891336
9       Vaibhav Dyestuff                 Reactive Dyes              Mr. Jasmin P Shah, 079-
        Industries                                                  22871259
10      Sudeep Industries                Reactive Dyes              Mr. Bharat Patel, 079-
                                                                    22875566
11      Overseas Enterprise              Reactive Dyes              Mr.
12      Monica Industries                Reactive Dyes              Mr. Shailesh Gandhi, 079-
                                                                    25833511
13      Aeromax Synthetic                Reactive Dyes &            Mr. Ravi Bajaj. 079-
        industries                       Intermediates              22821846
14      S K Containers                   Metal Containers           Mr. Shailesh Patel, 98250
                                                                    82271
15      Shreeji Polymers                 HDPE Carboys &             Mr. Shailesh Patel, 079-
                                         Drums                      25892271
16      Balaji Plastic Industries        HDPE Bags &                Mr. Anil Agrawal,
                                         LDPE Liners                9825043039
17      Aico Laboratories India          Textile Chemicals,         Mr. S.D.Wadekar,
        Ltd                              Paper Chemicals            9328001246
18      Atlas Dyechem I Pvt Ltd          Dyes & Chemicals           Mr. Keyur Sheth, 079-


                                                                                         106
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


                                                                    26769712
19      Gaurav Industries Pvt            Reactive, Acid &           Mr. Prashant Gupta,
        Ltd                              Direct Dyes                9824038433
20      Adeshwar Moulds                  Plastic Injection          Mr. Jaysukh Mistry, 98250
                                         Moulds & Dies              63393
21      Parikh Enterprises P.            Copper Chemicals           Mr. Paresh Parikh,
        Ltd                                                         9825027626
22      Indo Colchem Ltd                 Dyes &                     Mr. Satish Shah,
                                         Intermediates              9825006900
23      Parag Dyestuff                   Direct TURQ Blue           Mr. Mahesh Desai,
                                         86 & CPC Blue              9825005160
24      Neochem Industries               Dyes & Chemicals           Mr. Harshad Shah, 079-
                                                                    25830444
25      Asiatic Colour-Chem Ind          Leather Dyes, Acid         Mr. Mahesh Agrawal, 079-
        Ltd                              Black and Brown            66305941
26      Gunjan Paints Limited            Paints Chemicals           Mr. G. D. Barot,
                                                                    9725011021
27      Chemclone industries             Chemicals                  Mr. Chhaganbhai Lakhani,
                                                                    9825050735
28      Blowplast Polymers               Plastic Containers         Mr. Bharat Patel,
                                                                    9824069196
29      Shree Ram Chemical               Resist Salt &              Mr. Ravi Saxena,
        Industries                       Metanilic Acid             9825355857
30      Harsh Organo Chem I              Dyes &                     Mr. Chandrakant Patel, 079-
        Pvt Ltd                          Intermediates              25841426
31      Worldtex                         Special Chemicals          Mr. Saurabh Garg, 98250
                                                                    23357
32      R. K. Industries                 OPSA                       Mr. Karsanbhai Patel
33      Prashant Industries              Dyes & Pigment             Mr. Karsanbhai Patel,
                                         Intermediates              9825095197




                                                                                         107
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


(b) List of Private BDS :

Sr.
        Name of the Firm                 Services                 Point of Contact
No
        Chemical Research &                                       Mr. Naresh Tanwar, 93271
1                                        Laboratory
        Development Centre                                        65055
        Navayug Analytical
2                                        Laboratory               Mr. B.V.Shah, 9228121142
        Laboratory
                                         Environmental            Mr. Mahendra Sadaria,
3       SAN Envirotech Pvt Ltd
                                         Services                 9327637201
                                         REACH                    Mr. Jastin Sardhara, 079-
4       European Reach Centre
                                         Consultancy              40241999
                                                                  Mr. Hemant Agarkar,
5       Spectro Colour Lab               Laboratory
                                                                  9825413457
                                         Chartered                Mr. Parag Shah, 079-
6       Parag A Shah & Co
                                         Accountancy              26850978
        V Gajjar Accounting              Accounting
7                                                                 Mr. Vinod Gajjar, 9426322368
        Services                         Solutions
                                         Chartered
8       R. N. Mohil & Company                                     Mr. R. N. Mohil, 9825864621
                                         Accountancy
        S. V. Modi Import -              Business
9                                                                 Mr. S.V. Modi, 9825014191
        Export                           Consultancy
                                         Technical                Mr. Parag Sheth, 98250
10      Consulting Engineers
                                         Consultant               25953
        Prism Pharmatech                 Calibration &            Mr. Parthiv Kinariwala,
11
        Solutions                        Automation               9824526444
        H.K.Acharya &                    Patent &                 Ms. Nilam Gadani, 079-
12
        Company                          Trademark                26425258
                                         Custom and               Mr. Chintan Kothari,
13      Domino Cargos
                                         Forwarding               9825075482
                                         Environmental
14      Chokhavatia Associates                                    Mr. Chokhavatiya
                                         Services
                                         Environmental            Mr. Rakesh Shah,
15      Anand Consultants
                                         Services                 9825011748
                                                                  Mr. Devang Shah,
16      Intertek                         ISO Certification
                                                                  9426305162
                                         Environmental            Mr. Sandeep Dave,
17      Project Force
                                         Services                 9825065825
        Environmental Project            Environment              Mr. Sandeep Dave,
18
        Pvt ltd                          Audit                    9825065825
        HDFC Bank Ltd - Vatva                                     Mr. Nikunj Jain, 079-
19                                       Banking Services
        Branch                                                    65100596
20      OASIS Test House                 Laboratory               Mr. Ashok Thakkar
21      SGS India Pvt Ltd                Laboratory               Mr. , 079-26854360




                                                                                            108
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


(c) List of Public BDS Providers:

Sr.
       Name of the Firm                Services               Point of Contact
No
       Ahmedabad Textile
       Industry's                                             Mr. A. K.Sharma, 079-
1                                      Laboratory
       Research Association                                   26307921
       (ATIRA)
       Central Institute of
       Plastics                        Plastic Testing
2                                                             Mr. P. K. Sahoo, 9974339404
       Engineering &                   Laboratory
       Technology (CIPET)
       Indo German Tool Room           Design and Tool   Mr. Vinesh Swadia, 079-
3
       (IGTR)                          Room              25841960
       Bank Of Baroda - Vatva                            Mr. Virendra Singh, 079-
4                                      Banking Services
       Branch                                            25890014
       Gujarat Industrial &            Project
       Technical                       Consultancy,
5      Consultancy                     Environmental     Mr. Padmin Buch, 026569617
       Organization Limited            Services,
       (GITCO)                         Patent Cell
6      ITI Kubernagar                  Institute for ITI Mr. P.A. Mistry
       Bureau of Indian                Standard
7                                                        Mr.Sharma
       Standards (BIS)                 Providers

(d) List of BMOs:

Sr. No Name of the Firm                                  Point of Contact
       Gujarat Dyestuff Manufacturers'
1                                                        Mr. Bhrambhatt, Secretory
       Association (GDMA)
2      Gujarat Chemical Association, GCA                 Mr. Jaimin Vasava, President
       Gujarat State Plastic Manufacturers'
3                                                        Mr. Navin Trambadia, President
       Association (GSPMA)
4      Vatva Industrial Association - VIA                Mr. Kirit Patel, President
       The Green Environment Service
5                                                        Mr. Bipinbhai Patel, Chairman
       Co op. Soc Ltd. - Vatva Green
6      Naroda Industries Association - NIA               Mr. Shailesh patwari, President
7      Naroda Enviro Projects Ltd                        Mr. Shailesh Patwari, Chaiman
8      Odhav Industries Association - OIA                Mr. Mansukh Kothia, President
9      Odhav Enviro Projects Ltd                         Mr. Mansukh Kothia , Director
       Association of Chemical
10                                                       Mr. Sharma, President
       Technologist India (ACTI)




                                                                                           109
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                                                                   Annexure: II
List of participants in GCA presentation
On 23rd March 2009, EDI had organized Project Presentation and discussion
about the participation from Gujarat Chemical Association (GCA). Below list
shows participants detail:

Sr No       Name of Participant                           Represent
1           Mr. Jaimin Vasa                               President, GCA
2           Mr. Ramesh Patel                              Vice President, GCA

3           Mr. Sidharth Merchant                         Hon. Secretary, GCA
4           Mr. Kanu Chokshi                              Tresurer, GCA
5           Mr. Bhupendra Botadra                         Executive Member, GCA
6           Mr. Maunag Amin                               Executive Member, GCA
7           Mr. Hiren Shah                                Executive Member, GCA
8           Mr. Nehal Shah                                Executive Member, GCA

9           Mr. Pravin Mehta                              Executive Member, GCA
10          Mr. Sujal Zaveri                              Executive Member, GCA
11          Mr. Bimal Parikh                              Executive Member, GCA
12          Mr. Ajay Thakkar                              Executive Member, GCA
13          Mr. Mahesh Thakkar                            Executive Member, GCA
14          Mr. Ravi Thakkar                              Executive Member, GCA
15          Mr. K.J.Dave                                  Office Secretary, GCA

16          Mr. Bipin Shah                                Project Head, EDI
17          Mr. Saumil Dave                               Cluster Manager, EDI




                                                                                            110
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad




                                                                                   Annexure: III
A. List of participant in two FGD


FGD Participant List - Date 22 & 25th May 2009

Sr. No     BDS                                           Person
1          Prism Pharmatech Solutions                    Mr. Parthiv Kinariwala
2          Project Force                                 Mr. Sandeep Dave
3          Anand Consultant                              Mr. Rakesh Shah
4          ACTI                                          Mr. Sharma
                                                         Mr. Padmin Buch
5          GITCO
                                                         Mr. Nilesh Gajjar
                                                         Mr. Devang Shah
6          Intertech
                                                         Mr. Ajit Aacharya
7          V Gajjar                                      Mr. Vinod Gajjar
8          CRDC                                          Mr. Naresh Tanwar
9          Neochem Industries                            Mr. Harshad Shah
10         Mahak Dychem                                  Mr. Ashish gandhi
11         GCA                                           Mr. H Vyas
12         Gunjan Paints Limited                         Mr. G.D.Barot
13         EDI - Senior Faculty                          Mr. Bipin Shah
14         EDI - Subject Expert                          Mr. Hemant Agarkar
15         EDI - Cluster Manager                         Mr. Saumil Dave
16         EDI - Networking Expert                       Mr. Riken Shah




                                                                                             111
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



B. Photographs of FGD at EDI, Ahmedabad




                                                                                   112
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                                  Annexure: IV
Location map of Dyes/ Chemicals Clusters in Gujarat:




                                                                                   113
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                                                                   Annexure: V
Location map of Cluster in Ahmedabad




                                                                                           114
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                                                                   Annexure VI
Consumption Pattern of Dyestuff

Dyestuff is a broad term which includes dyes and pigments. A dye is a coloured
substance or an organic compound, which when applied in a solution to a fabric,
imparts a colour resistant to washing. They are largely used by the textiles, paper
and leather industry, with textiles accounting for over 80% in India. This links the
dyestuff industry’s fortunes to that of the textile industry. Dyes are classified
according to various systems. The most commonly used one is the one used by
the US International Trade Commission. According to this system, there are 12
types of dyes, as detailed in the following table:

                     Types of Dyes based on their applications.

            Group             Application
            Acid              Wool, silk, paper, synthetic fibres, leather
            Azoic             Printing Inks and Pigments
            Basic             Silk, wool, cotton
            Direct            Cotton, cellulose and blended fibres
            Disperse          Synthetic fibbers
            dyes
            Reactive          Cellulose fibre and fabric
            Organic           Cotton, cellulose, blended fabric, paper
            pigments
            Sulphur           Cotton, cellulose fibre
            Vat dyes          Cotton, cellulose and blended fibre

With the change in the product profile of the textile industry from the high-cost
cotton textiles to the highly durable and versatile synthetic fibbers, the
consumption pattern of dyes has also been changing. Polyesters are projected to
account for a large part of dye consumption in the country. Accordingly, disperse
dyes, which find application in polyesters, are projected to grow faster.

In addition to textiles, dyestuffs are also used in industries like plastic, paints,
printing inks, paper and leather. While these industries account for a very small
part of domestic consumption, globally these account for a substantial part of
total consumption.




                                                                                           115
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                                                                   Annexure VII
Sub-sector of Chemicals
1       Inorganic Chemicals:

Inorganic chemical is any substance that contains two or more chemical
compounds nearly in definite proportions other than carbon and some other
compounds containing carbon but lacking carbon-carbon bonds. In simple words
it is the compound which lack hydrocarbon group. But many compounds which
have the element of carbon are also inorganic like carbonates, carbon-dioxide,
cyanides, carbon monoxides, etc. Inorganic chemicals/compound can be
grouped by the elements that they consist. But the main classes of organic
chemicals are silanes, silicones, cuprous chloride, ferrous sulphate, borates and
silicates. An important sub category of organic compound is “coordination
compounds” also known as “complexes” that contain central metal atoms
together with one or more non-metallic elements. In traditional terms, organic
chemicals are considered as minerals and not biologically originated .

2       Textile Chemicals:

There are many chemicals which are used in textile mill’s processing which are
divided in two categories like chemicals which are intended to remain on fibre or
chemicals which are intended to clean the fibbers. Even though many textile
products reach the ultimate user in natural colour but with the rise in demand
these mills also started to use different chemical dyes and pigments. Dyeing is a
process usually conducted in the textile mills. Today, textile materials are either
collared by dyeing (immersing the fabric in solutions) or printing , apart from
colouring solutions. Softeners are used in treatment of textiles.


3       Organic Chemicals:

Organic chemicals/compounds constitute a part of wide range of chemical
compounds whose molecules consists of carbon. The science of organic
chemistry is concerned with the entire concept of organic compound. The history
of organic compound dated back 19 th century when research believe that organic
compounds could only be synthesized in living organisms with the support of life-
force. All living organisms consist of water and organic chemicals: carbohydrates,
fats, nucleic, proteins, hormones, proteins, etc. In physics, organic chemical is
the material which contains hydrogen and carbon and elements such as sulphur,
nitrogen and oxygen. Almost all types of polymers, including all plastics are
organic compound. Earlier organic compound were extracted naturally as it
would be too expensive to produce it artificially. Today with advancement of
science and technology, most of the organic chemicals are produced artificially
although they are too expensi ve.



                                                                                            116
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


4       Pesticides & Agrochemicals:

India is currently the largest manufacturer of Pesticides in Asia, second only to
Japan. The pesticides demand from the agriculture sector is expected to go up to
97,000 tonnes by the year 2000. More than 60 technical grade pesticides are
manufactured indigenously. Some 125 units are engaged in the manufacture of
the above and over 500 units are making pesticide formulations

In agrochemical, units manufacture significant quantities of synthetic pyrethroids,
such as fenvalerate and cypermethrin, endosulphane, and organophosphate
range of agrochemicals, including monocrotophos. India is also a dominant
producer of isoproturon, a weedicide accounting for nearly 25% of the world-wide
production.

5       Fine & Speciality Chemicals:

70% of the Fine Chemicals produced in India find their way into the
Pharmaceutical and Agrochemical sectors. Performance chemicals geared to
customer need are being developed locally particularly since there is growing
demand for Speciality chemicals like Sunscreens, Antioxidants, Biocides, etc.
Manufacturers of Fine Chemicals and specialities have major strengths in basic
research facilities available with CSIR laboratories such as NCL, IICT & RRls as
also corporate R & D centres. This ensures that development of process know-
how; plant process design and engineers, detailed engineering design,
commissioning assistance and even consultancy for re-engineering are available
at low cost.




                                                                                   117
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


                                                                                   Annexure: VIII
Common Effluent Treatment Plants at Gujarat:

                                                                                    Numb
    NAME OF                                                                Capacity
SR.                                               NAME OF THE                       er of
    THE CETP               NAME OF THE                                     of CETPs
NO                                                CONTACT                           Memb
    AND                    SITE, IF                                        1M³=1000
.                                                 PERSON                            er
    ADDRESS                                                                Litre
                                                                                    Units
1     M/S The              M/S The Green          Mr. Bipinbhai    16000 M³/ 580
      Green                Environment            Patel, Chairman, Day
      Environment          Services Co-           (O)-079-5892283,
      Services Co-         Operative              5832449, 5832520
      Operative            Society Limited,       (Fax)-079-
      Society              Plot No. 244-          5893614
      Limited, Plot        251, Phase-II,
      No. 244-251,         GIDC Estate,
      Phase-II, GIDC       Vatwa,
      Estate, Vatwa,       Ahmedabad-382
      Ahmedabad-           445
      382 445
2     M/S Odhav            M/S Odhav              Shri Mansukh             1200 M³ /     60
      Enviro               Enviro Projects        Kothia, Director         Day
      Projects             Limited, Plot No.      Tel 079-2891277,
      Limited, Plot        25, GIDC-Odhav,        2892224
      No. 25, GIDC-        Ahmedabad
      Odhav,               382415,
      Ahmedabad
      382415,
3     M/S Naroda           M/S Naroda             Shri Shailesh      3000 M³ /           242
      Enviro               Enviro Projects        Patwari, Chairman, Day
      Projects             Limited, Plot          O-079-2816311,
      Limited, Plot        No.512-515,            Fax: 079-2823299
      No.512-515,          Phase-I, GIDC,
      Phase-I, GIDC,       Naroda,
      Naroda,              Ahmedabad
      Ahmedabad
4     M/S GVMSAV           M/S GVMSAV             Shree Lalbhai   100 M³ /               357
      Limited, Plot        Limited, Plot No.      Shah, Managing  Day
      No. 181,             181, GVMM              Director, O-
      GVMM                 Industrial Estate,     2901331/2902810
      Industrial           Odhav,
      Estate, Odhav,       Ahmedabad
      Ahmedabad



                                                                                               118
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



5     M/S Narol            M/S Narol
      Dyestuff             Dyestuff Enviro
      Enviro               Society, Narol,
      Society, Narol,      Dist-Ahmedabad
      Dist-
      Ahmedabad
6     M/S Nandesari        M/S Nandesari          Shree Babubhai C. 5500 M³ /      167
      Industries           Industries             Patel             Day
      Association          Association,           Chairman
      Plot No. 134/1,      Secondary              (O)-0265-2841016
      Opp-Shopping         Treatment Plant,       Fax: 0265-
      Centre,              Plot No. 153/A,        2841017
      Nandesari-391        GIDC, Nandesari
      340, Dist-           Vadodara
      Baroda
      Phone: 0265
      840390/840341
7     M/S Enviro           M/S Enviro             Shri Ashok          1000 M³ /    225
      Technology           Technology             Panjwani, Director, Day
      Limited, Plot        Limited, Plot No.      and Shri B.D.
      No. 2413/14,         2413/14, GIDC          Dalwadi, Dy.
      GIDC Industrial      Industrial Estate,     General Manager
      Estate,              Ankleshwar-393         (Works) Tel: O-
      Ankleshwar-          002, Dist-             02646-252768,
      393 002, Dist-       Bharuch
      Bharuch
8     M/S Panoli           M/S Panoli             Shree B.S. Patel, 1 MLD          104
      Enviro               Enviro                 President and Shri
      Technology           Technology             Pankaj A
      Limited, Plot        Limited, Plot          Bharwada, Hon
      No.619, GIDC         No.619, GIDC           Secretary, O-
      Estate, Panoli,      Estate, Panoli,        02646-
      Dist-Bharuch-        Dist-Bharuch-          272022,272275,
      394116               394116                 Mob: 98244-76297
                                                  and 9824476291
9     M/S Verawal          M/S Verawal            Shri K.P. Thomas, 5 M³ / Day 42
      Industries           Industries             Chairman, O-
      Association,         Association,           02876-231686,
      C/O HMG              C/O HMG                231339, Fax:
      Limited, 5-6         Limited, 5-6           231785, Shri R.P.
      GIDC Estate,         GIDC Estate,           Chopadkar,
      Verawal-362          Verawal-362 269        Director, Tel:
      269                                         02876-231914,
                                                  Fax: 231785,



                                                                                         119
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



                                                  231787
10    Globe Enviro         Globe Enviro           Shree Vatsal        500 M³ /         35
      Care Limited,        Care Limited,          Nayak, Managing Day
      Plot No. PP/1,       Plot No. PP/1,         Director, Tal-0261-
      Off-Road No2,        Off-Road No2,          8876635,
      B/H-KayTex           B/H-KayTex             Fax: 8872289
      Mills, GIDC-         Mills, GIDC-
      Estate, Sachin,      Estate, Sachin,
      Dist-Surat           Dist-Surat
11    M/S Palsana          M/S Palsana            Shree Ravindra           100 MLD     96
      Enviro               Enviro                 Arya, Chairman,
      Protection           Protection             O-0261-2350769,
      Limited, 301-        Limited, Block         2341909,
      302-Dhanlaxmi        No. 527& 528,          2339948,
      Complex,             Vill-Umbhel, Tal-
      Kadodara Char        Kamrej, Dist-
      Rasta,               Surat
      Kadodara,
      Dist-Surat
12    M/S Perfect          M/S Perfect     Shri S.V. Rao,                  400 M³ /    06
      Enviro Control       Enviro Control Manager                          Day
      System               System Limited,
      Limited, Plot        Plot NO. 731/2,
      NO. 731/2,           GIDC, Sarigam,
      GIDC,                Dist-Valsad-
      Sarigam, Dist-       396155
      Valsad-396155
13    M/S Vapi             National       Shree Manoj Oza, 55 MLD                      743
      Waste &              Highway No.8,  Managing Director
      Effluent             Nr. Damanganga O-0260-2428950,
      Management           River, GIDC,
      Company              Vapi-396 195
      Limited, VIA
      House, Plot
      No. 135, GIDC-
      Vapi
14    M/S Jetpur           M/S Jetpur             Shri Rajubhai            20000 M³ / 869
      Dyeing &             Dyeing &               Patel, President         Day
      Printing             Printing               O-02823-
      Association,         Association,           220308/223181
      Kankia Plot,         Kankia Plot,
      Jetpur-360 370       Jetpur-360 370
15    M/S Enviro     M/S Enviro                   Shri Atul Patel,         2250 M³ /   33
      Infrastructure Infrastructure               Chairman, Tel:           Day


                                                                                             120
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



      Co-Limited,          Co-Limited,            0265-
      ECP Canal            ECP Canal              358283/334805
      Road, At-            Road, At-              Fax: 324847
      Umaraya, Dist-       Umaraya, Tal-
      Vadodara             Padra, Dist-
                           Vadodara
16    M/S Shree            M/S Shree              Shri Harshadbhai         150 M³ /   20
      Dhareshwar           Dhareshwar             Bhuva, President         Day
      GIDC Vistar          GIDC Vistar            O-02823-
      Association,         Association,           220308/223181
      Near                 Near
      Dhareshwar           Dhareshwar
      temple,              temple, National
      National             Highway,
      Highway,             Navagadh, Dist-
      Navagadh,            Rajkot
      Dist-Rajkot
17    M/S Sanand           M/S Sanand             Shree Deepak R. 200 M³ /            27
      Eco Project          Eco Project            Babaria, Chairman Day
      Limited,             Limited                Tel: 079-6641725
      3, Samast            Survey No. 172,        Fax: 079-6632259
      Brahmkshtriya        Ajanta Industrial
      Society,             Estate,
      Narayan Nagar        Iyava-Vasna, Ta-
      Road,                Sanand
      Shantivan,           Dist-Ahmedabad
      Paldi,
      Ahmedabad
18    M/S Kalol            M/S Kalol
      Industrial           Industrial
      Association,         Association,
      GIDC-Kalol,          GIDC-Kalol,
      Dist-                Dist-
      Gandhinagar          Gandhinagar




                                                                                           121
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



Details of CETP at Cluster:




GENERAL INFORMATION

The Vatva Industrial Estate was established by Gujarat Industrial Development
Corporation in the year 1960 in the south east direction of Ahmedabad City on
Ahmedabad - Mehmadabad state highway to accommodate small and medium
scale industrial units.

There are approximately 1800 units in this industrial Estate, out of which
approximately 680 generate wastewater and have potential to cause water
pollution. These include units manufacturing Pharmaceutical Products, Dyes,
Dye-Intermediates, Pigments, Fine Chemicals and other organics. They also
include Textile Process Houses, Rolling Mills and other Non Chemical Process
Industries.




                                                                                   122
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


The important aspects of CETP Project are briefly outlined below

Location: The CETP Site is located at Plot Nos.: 244-251
, Phase: II, GIDC Estate, Vatva, Ahmedabad.

Land Area: The CETP and associated facilities are set up on the land area
admeasuring 28000sq m.

Treatment Technology: M/s Advent Corporation, USA gave the process design
based on the ability to treat study, carried out by Sudarshan Chemical Industries
Ltd., Pune. The detailed engineering was provided by M/s Sudarshan Chemical
Industries Ltd., Pun.

Project Cost: Initially the common facilities for the collection, treatment (CETP)
and conveyance of treated effluent were set up at the cost of Rs. 33.28 crores.
The break-up of this cost is as under:

Internal Collection Systems                                           Rs. 10.17 crore.
Treatment units (CETP)                                                Rs. 18.00 crore
Conveyance line up to AMC Pirana Plant Sabarmati                      Rs. 05.11 crore.
                                                                      Total Rs. 33.28 crore.

Later the CETP was upgraded by installing new units and systems at the
additional cost of Rs. 11.74 crore. Thus the total Project Cost became Rs. 45.02
crore.

Salient Features of the CETP:

The CETP was designed making use of new technology known as AIS (Advent Integral
System) which consists of Aeration Basin surrounded by Integrated Peripheral
Secondary Clarifier. Later during the up-gradation programme this Integral Clarifier was
converted into Aeration Zone and two separate Secondary Clarifiers were provided.

Charging Basis: The treatment charges are levied from the member units at the
rate of Rs. 20 per kg of TOC in the effluent.

Inlet Norms: The CETP inlet norms applicable to the member units in respect of
the quality of the effluent are as under:

BOD 1200 mg/l
COD 3000 mg/l
TSS 600 mg/l

The upper limits for the heavy metals and other pollutants have also been
specified.




                                                                                          123
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


The member units are required to adhere to the inlet norms. The quality of the
effluent received at CETP is monitored and extra penal charges are levied from
the member units violating these norms.

CETP DESIGN CRITERIA

The industrial units in the Vatva estate include manufacturers of dyes and dye-
intermediates, bulk drugs and pharmaceuticals, fine chemicals and also textile
process houses etc. and therefore the wastewater generated by these units is of
complex nature and contain great variety of pollutants. The characteristics of the
combined effluent and its ability to treat were carried out by M/s Sudarshan
Chemical Industries Limited, Pune. The design of CETP was based on this study
and the main parameters considered were flow, total suspended solids, chemical
oxygen demand (COD) and biological oxygen demand (BOD). All the member
units were required to treat the effluent to render its quality to a level which could
be taken as the basis for the design of CETP. Thus the CETP inlet norms were
fixed as under:

          Parameter                          Influent
          Flow                               16000 m3/day
          pH                                 6.5 8.5
          TSS                                600 mg/l
          COD                                3000 mg/l
          BOD                                1200 mg/l


Based on the above parameters M/s Advent Corporation USA provided design of
CETP. The process of treatment involved biological treatment technology in
extended aeration mode. The detailed engineering and construction / installation
of CETP were carried out by M/s Sudarshan Chemical Industries Limited. The
commissioning and initial operations of the plant were performed under the
supervision of and in consultation with M/s Advent's Indian collaborator, namely
Advent Envirocare Technology Pvt. Ltd., Ahmedabad.

ACHIEVEMENTS

The major achievement due to the implementation of the environmental
infrastructure projects namely CETP and common SLF in the estate of Vatva is
stoppage of discharge of Industrial wastewater on land and open drains and
prevention of water pollution in this area. This also gave clean and aesthetic look
to the estate




                                                                                   124
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


The other achievements of GESCLS associated with the establishment and
operation to these projects are as under:

   CETP is certificated for ISO 9001:2000, ISO 14001:2004 and ISO
    18001:1999 for provisions of services for effluent collection, treatment and
    discharge
   Secured Landfill Facility is certificated for ISO 9001:2000, ISO 14001:2004
    and ISO 18001:1999 for provisions of services for collection and storage of
    solid waste.




                                          Vatva CETP




                                                                                   125
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad


Naroda Enviro Projects Ltd. Naroda, Ahmedabad.

Design Engineer and Consultant for Common effluent treatment plant with state
of art primary and secondary treatment facilities having capacity of 3 MLD (3,000
KL/d), with an aim to treat the effluent generated by the member units of the
Naroda Industrial Estate, Ahmedabad, and Gujarat, India.




                                         Naroda CETP


                                                                                   126
Diagnostic Study Report of Dyes, Chemical & Plastic Packaging Cluster, Ahmedabad



Odhav Enviro Projects Ltd

OEPL is a CETP set up by the Industrial units of GIDC Odhav having trade
effluent. It was commissioned in Jan 1998 and since then: it is running
continuously without a single shut down. The main functions of OEPL are to
collect, convey, treat and dispose off the effluent generated by the member units.




                                         Odhav CETP




                                                                                   127

								
To top