EXECUTIVE SUMMARY

Document Sample
EXECUTIVE SUMMARY Powered By Docstoc
					                                        Diagnostic Study Report – Shuttlecock Cluster in Uluberia




                               EXECUTIVE SUMMARY

1     Title of the Study              Diagnostic Study on Shuttlecock Cluster at
                                      Uluberia in Howrah Dist. of West Bengal under
                                      Small Industries Cluster Development Program
                                      (SICDP)
2.    Location                        The cluster is predominant at Jadurberia,
                                      Bahirtafa, Banitabla & Tantiberia of Uluberia
                                      Municipality and at Baniban, Rajapur, Pirpur &
                                      Brindabanpur Villages of Uluberia Block II
                                      within a radius of 3 kms. under Uluberia Sub-
                                      division in Howrah District of West Bengal.
3.    Existence of the Cluster   The Shuttlecock Cluster at Uluberia is a large
                                     natural cluster of its kind and the Cluster is
                                     existed more than of 60 years.
4.    Principal Product               Badminton Shuttlecock
5.    Product Code                    385101007
6.    Quality & Standards             IS : 415 : 1963
7.    Number of Enterprises           Around 150 units
8.    Production Capacity (Avg. 20    The present annual production capacity of the
      boxes per unit X 150 Units X    Cluster has been estimated at 750 thousand
      250 days/annum)                 boxes (a box with10 cocks)
9.    Annual Turnover                 Rs. 15 Crore (approx) during FY:2005-06
10.   Cluster Development             Shri Salil Kumar Mitra, Sr. Project Officer West
      Executive (CDE)                 Bengal      Consultancy     Organisation     Ltd.
                                      (WEBCON), Howrah Project Office, CEO
                                      Building, CTI Road, Dasnagar,
                                      Howrah – 711 105.
                                      Telephone No. (033) 2653-8113
                                      E-mail : salilsimple@rediffmail.com
11.   Technical Advisor (TA)          Shri J. K. Sinaharay, Chief Consultant West
                                      Bengal Consultancy Organisation Ltd.
                                      (WEBCON), Shilpa Bhavan, 3rd Floor, 31,
                                      Black Burn Lane, Kolkata – 700 012.
                                      Tel. : (033) 2225-1229/1230/1575
12.   Cluster Vision                  To achieve 40% increase in turnover, enhance
                                      avg. profit by 30% & to emerge as prominent
                                      player in domestic market eyeing for export.


                                       1                                              April, 2007
                               Diagnostic Study Report – Shuttlecock Cluster in Uluberia


13.   Programme Duration   36 months approx. from date of sanction.




14.   Major Strengths             High export potential item
                                  Established local marketing channel
                                  Traditional skill
15.   Pressure Points             Mutual distrust among cluster units & no
                                   sharing of common problems
                                  Non-existence of local raw materials
                                  Inability to procure need-based stock & no
                                   common approach for stocking
                                  Poor marketing knowledge particularly in
                                   the field of export marketing
                                  No sign of using modern machinery
                                   causing low & varied product level
                                  Lack of skill upgradation facility
                                  Lack of BDS facility
                                  Poor credit flow in the cluster
                                  Poor infrastructure under home scale
                                  High process wastage
                                  Unhealthy marketing practice causing low
                                   value realization & profit margin
                                  Dependence of limited buyers
                                  Threats from Chinese products
                                  No product display facility & approach for
                                   promoting cluster product
                                  Absence of initiativeness for capacity
                                   building activities




                               2                                             April, 2007
                                       Diagnostic Study Report – Shuttlecock Cluster in Uluberia


16.   Strategic Action Plan               Enhancing the mutual trust among major
                                           stake-holders of the cluster
                                          Strengthening the existing Association in the
                                           cluster
                                          Survey on scope for setting up of CFC
                                          Market survey on export prospects for
                                           shuttlecock from Uluberia cluster
                                          Developing production network within the
                                           cluster
                                          Promoting common raw materials bank
                                           within the cluster
                                          Organiaing sensitization programme
                                          Organising skill upgradation training
                                          Organising entrepreneurial management
                                           training for the principal firms
                                          Developing more BDS linkages
                                          Participating in Trade Fairs, etc.
                                          Organising buyers-sellers meet
                                          Launching of common website
                                          Publishing common brochure including
                                           common publicity exercise
                                          Standardizing the product quality
                                          Exposure visit to similar clusters in the
                                           country and abroad
17.   Expected Project Outcome Export (Direct and Indirect)    - Rs.5 Crores
      (by the end of 2010)     Domestic Sales                  – Rs.21 Crores
                               Additional Investments          - Rs.1 Crores
                               Additional Employment :
                               a) Direct Employment            - 100 Persons
                               b) Indirect Employment          - 400 Persons
                               Skill Upgradation    - 80% of total workers
                               Incremental Profit – 30% (avg.) per annum.




                                       3                                             April, 2007
                                           Diagnostic Study Report – Shuttlecock Cluster in Uluberia

                                        CONTENTS


 Sl. No.                                       Title                                              Page
              EXECUTIVE SUMMARY
Chapter I     INTRODUCTION
   1.1        Backdrop                                                                                 1
   1.2        International Scenario                                                                   1
   1.3        National Scenario                                                                        2
   1.4        State Scenario                                                                           6
Chapter II    CLUSTER SCENARIO
   2.1        History of the Uluberia Shuttlecock Cluster                                              7
   2.2        Location of the Cluster                                                                  8
   2.3        Ownership, Size, Investments, Production & Turnover                                      8
   2.4        Concentration of the Units                                                               9
   2.5        Typologies of the Cluster                                                            11
   2.6        Principal Stakeholders                                                               11
   2.7        Other Stakeholders                                                                   13
   2.8        Other Cluster Actors                                                                 15
   2.9        Process Technology and Flow Chart                                                    16
   2.10       Present Cluster Map                                                                  18
   2.11       Benchmarking with Jalandhar Sports Goods Cluster                                     20
Chapter III   ANALYSIS OF BUSINESS OPERATIONS (AOBO)
   3.1        General                                                                              22
   3.2        Present Production System                                                            22
   3.3        Raw Materials Procurement System                                                     23
   3.4        Present Marketing System                                                             26
   3.5        Entrepreneur & Skill Manpower                                                        28
   3.6        Financial Aspects                                                                    29
   3.7        Business Development Services (BDS)                                                  29
   3.8        Current Institutional Matrix                                                         30
   3.9        Pressure Points                                                                      31
   3.10       Building Social Capital                                                              31
   3.11       Value Chain Analysis                                                                 31

                               C O N T E N T S (Contd.)


                                          4                                              April, 2007
                                       Diagnostic Study Report – Shuttlecock Cluster in Uluberia



 Sl. No.                                   Title                                              Page
Chapter IV   SWOT ANALYSIS
   4.1       General                                                                           33
   4.2       SWOT Analysis                                                                     33
Chapter V    CLUSTER VISION
   5.1       Vision of the Cluster                                                             37
   5.2       Long Term Objectives                                                              37
   5.3       Strategy of the Cluster                                                           37
   5.4       Future Cluster Map                                                                38
Chapter VI   STRATEGIC ACTION PLAN & BUDGET ESTIMATE
   6.1       Strategic Action Plan                                                             39
   6.2       Year-wise Action Plan                                                             39
   6.3       Developmental Programmes & Fund Requirement                                       41
   6.4       Year-wise Activity Schedule with Budget Estimate                                  42
   6.5       Proposed Budget for the Programme                                                 51
   6.6       Proposed Means of Finance                                                         53
   6.7       Expected Project Outcome                                                          54
   6.8       Project Handing Over & Exit                                                       55
   6.9       Self-Management Phase                                                             55
             LIST OF ANNEXURES
    I        List of Persons Interviewed
    II       Sample Questionnaires for Association, Principal Firms




                                       5                                             April, 2007
                                             Diagnostic Study Report – Shuttlecock Cluster in Uluberia




                                                                                  CHAPTER – I

                                                                                INTRODUCTION

1.1   BACKDROP
      Badminton is played almost all the country throughout the world by both men and
      women including the children. This game is also very popular in India and is being
      patronized by the Government and Non-Government Organisations and Clubs, etc.
      With the increase in popularity of the badminton, the demand for good quality
      shuttlecocks is also increasing.

      The name shuttlecock is frequently shortened to shuttle; a shuttlecock may also be
      known as a bird or birdie. The ‘shuttle’ part of the name was probably derived from
      its back-and-forth motion during the game, resembling the shuttle of a loom; the
      ‘cock’ part of the name was probably derived from the resemblance of the feathers to
      a bird’s crest.

      A shuttlecock is a high-drag projectile used in the sport of badminton. It has an open
      conical shape; the cone is formed from sixteen overlapping duck feathers embedded
      into a round cork base. The shuttlecock’s shape makes it extremely aerodynamically
      stable. Regardless of initial orientation, it will turn to fly cork first and remain in the
      cork-first orientation.

      Shuttlecock breaks easily as the feathers are brittle in nature and often need to be
      replaced several times during a game. Hence, the consumption pattern is quite
      frequent in nature. However, most of the experienced & skillful players greatly prefer
      shuttlecocks with duck feathers rather than those made of plastics and almost all the
      international tournaments use the feathered shuttles of high quality.

1.2   INTERNATIONAL SCENARIO




                                            6                                              April, 2007
                                           Diagnostic Study Report – Shuttlecock Cluster in Uluberia

      As stated in the preceding paragraph, badminton is a very popular game and is
      played all-over the world. However, the global size of the shuttlecock industry is very
      small and only a few countries are engaged in its production. The major countries
      producing shuttlecock include China, Taiwan and Indonesia. The other countries
      producing this item, although to a small extent, include Japan, Malaysia, Singapore,
      UK, France, Ireland, etc. All these countries export shuttlecock to other countries to
      meet the global demand. India is small producer of shuttlecock in the world with a
      very limited global market share. China, Taiwan and Indonesia have undergone
      much technological development with regard to the production of shuttlecock and
      also these countries are having an appreciable global market share. The global size
      of the industry being small, no data/information on production, import and export are
      available from the published literatures and websites. However, this is a growing
      industry with large prospects of development for the countries like India and Pakistan
      engaged in its production in a small way with the use of backdated technology
      involving mostly manual operations with very little use of simple machinery.

1.3   NATIONAL SCENARIO
      India is a producer, importer and exporter of shuttlecock. Thus the domestic market
      of the product is met partially through its own production and partially through
      imports.

      Shuttlecocks are being produced in the country in two centres, one in the northern
      India (Jalandhar in Punjab) and the other one in eastern India (Uluberia in West
      Bengal). The center located at Jalandhar is basically a sports goods cluster
      producing a wide range of sports goods and badminton shuttlecock is one of the
      products of this cluster. On the other hand the cluster at Uluberia produces only
      badminton shuttlecock and no other sports goods.

      Jalandhar Sports Goods Cluster over a period of 120 years of its existence has
      crafted a place for itself in the global sports goods market. It has emerged as a
      reliable supplier of sports goods to the international markets, catering to the top
      brands like Reebok, Adidas, Puma, Gilbert, Mitre, Kookaburra, Slanzenger, Gracy
      Nicolls, John Newbery, Just Hockey etc and clubs like Manchester United, Chelsea,
      Liverpool, etc.   The Jalandhar sports goods cluster is a unique example of a
      transplanted cluster where a major segment (entrepreneurs, workers including


                                          7                                              April, 2007
                                        Diagnostic Study Report – Shuttlecock Cluster in Uluberia

   suppliers) started functioning in India’s pre-partition days. The items taken for
   manufacturing in the beginning were tennis, footballs, cricket bats & balls, field
   hockey, etc. With the passage of time new items, such as, badminton racquets,
   shuttlecocks, etc. have also been added significantly.

   With the globalization of the economy and the lowering of tariff barriers under the
   WTO regime, the cluster faced stiff competition from shuttlecocks imported from
   China that outdid the local product both in quality and price. Undeterred from the
   threat, the leading manufacturers from Jalandhar Cluster decided to make a trip to
   China in the beginning of millennium era to understand their manufacturing process.
   They found that the raw materials available in China were superior and cost effective
   and their production methods were also very efficient. However, the final assembly of
   the materials to make the shuttlecock was not foolproof and could not produce
   uniform quality. The entrepreneurs decided to import the materials from China in the
   pre-assembled condition and use their skilled labour for manual assembly of the
   shuttlecocks. The resultant products were of better quality and could overcome
   competition at least in the higher end market.

   Most of the enterprises in the Jalandhar Cluster are small-scale enterprises. With
   about 115 exporting enterprises, the cluster significantly contributes to the sporting
   goods exports from the country. In the year 2000-2001 the value-wise exports was
   USD 54 million, which increased to US $ 65 million in 2002-03.              But in the year
   2003-04 the figure touched US $ 100 million. This indicates a gradual growth of this
   industry in the country. The above figures exclude sports shoes, sports apparel,
   trekking bags and fitness equipment.

   The following Table – 2.1 presents statistics on the sports goods vis-a-vis shuttlecock
   industry in Jalandhar Sports Goods Cluster as on March 31, 2002.

                                                                                    Table – 1.1

STATISTICS ON THE SPORTS GOODS VIS-A-VIS SHUTTLECOCK INDUSTRY OF
                JALANDHAR SPORTS GOODS CLUSTER
                      (As on 31ST March, 2002)


    Sl.    Name of the        NIC          Number of units              Employment (No.)



                                       8                                              April, 2007
                                                Diagnostic Study Report – Shuttlecock Cluster in Uluberia

 No         Industry            Code      Urban         Rural        Total     Urban     Rural       Total
  1.    Sports Goods               -        554          141          695       3567      798        4365
  2.    Shuttlecock             3851        122           27          149       910       250        1160



                                       Investment                               Production
 Sl.      Name of the              (in Million Rupees)                     (in Millions Rupees)
 No        Industry                                                                         Total
                                Urban      Rural    Total                Urban      Rural
  1.    Sports Goods             70.5            6.1           76.6      1876.6        65.5       1942.1
  2.    Shuttlecock               1.2            0.3           1.5           91.0      31.0        122.0
Source: District Industries Centre, Jalandhar

In the absence of any data/information on the present level of production of
shuttlecock in Jalandhar Sports Goods Cluster, it may be considered that the
production in 2004-05 was valued at Rs.150 million on a conservative basis.

The Uluberia Shuttlecock Cluster produced shuttlecock valued at around Rs.120
million in 2004-05. Taking the production figures of these two clusters into
consideration the total production of shuttlecock in India in 2004-05 valued at around
Rs.270 million.

The country exports shuttlecock to a large number of foreign countries like USA, UK,
Ireland, South Africa, Australia, UAE, Netherlands, Germany, Israel, Sri Lanka, etc.
The total exports in 2004-05 was 3,46,267 nos. of shuttlecock valued at around
Rs.39.1 million vide Table – 2.2 hereinafter.
                                                                                              Table – 1.2
        India’s Exports of Shuttlecocks (HS Code : 95069910) – FY : 2004-05

  Sl.         Name of the Countries                    Quantity (Nos.)                 Value (Rs.)
   1.     USA                                                        84,663             15,797,120
   2.     United Kingdom                                             91,482               6,432,611
   3.     Ireland                                                    58,135               5,806,544
   4.     South Africa                                               33,779               1,749,134
   5.     Australia                                                  16,453               1,646,909
   6.     UAE                                                        11,648               1,574,010
   7.     Netherlands                                                11,000               1,593,787
   8.     Germany                                                     8,623               1,032,243


                                            9                                                  April, 2007
                                     Diagnostic Study Report – Shuttlecock Cluster in Uluberia


  Sl.       Name of the Countries             Quantity (Nos.)             Value (Rs.)
  9.     Israel                                         5,000                    346,125
  10.    Sri Lanka                                      3,903                    244,986
  11.    Other Countries                               21,581                 2,865,132
                                   Total             3,46,267                39,088,601
Source : DGCIS, GoI


From the country wise export data presented in the above Table, it is observed that
USA was the largest importer followed by UK, Ireland, South Africa and Australia.

India imports the product mainly from the countries like Republic of China, Japan,
Ireland, Taiwan, Malaysia, France, Australia, Singapore, Indonesia and UK. China,
Japan and Ireland are the three major suppliers to India followed by Taiwan and
Malaysia. The country imports shuttlecocks also from France, Australia, Singapore,
Indonesia and UK although to a small extent. The total imports in 2004-05 was
10,93,773 nos. of shuttlecock valued at around Rs.48.4 million vide Table – 1.3
below:

                                                                                 Table – 1.3

  India’s Imports of Shuttlecocks (HS Code : 95069910) – FY : 2004-05

  Sl.     Name of the Countries            Quantity (Nos.)               Value (Rs.)
   1.    Republic of China                        632,168                 15,872,930
   2.    Japan                                    274,320                 22,411,061
   3.    Ireland                                  136,300                  1,842,508
   4.    Taiwan                                    19,516                  1,118,954
   5.    Malaysia                                  12,400                    177,055
   6.    France                                      9,900                 3,554,640
   7.    Australia                                   4,500                 2,410,496
   8.    Singapore                                   2,615                   150,586
   9.    Indonesia                                   1,300                   420,641
  10.    UK                                            754                   433,058
                           Total               1,093,773                  48,391,929
Source : DGCIS, GoI

The reason for the stagnant export lies in the narrow band of operation of the firms of
Jalandhar and Meerut or for that matter by the Indian exporters of sports goods. Due
to a slow or negligible transfer of advance technology, firms of the cluster could not



                                    10                                             April, 2007
                                           Diagnostic Study Report – Shuttlecock Cluster in Uluberia

      produce sophisticated high value items. As a result, at the middle and the lower end,
      more and more markets are being gained by countries like China, Taiwan, and
      Indonesia etc. due to their mass production capacities and cheap labour. An
      indulgent Government and freedom from regulations are quoted as other reasons for
      the success of the above countries. In fact, it is feared that these countries
      particularly China, is going to overcome the shortage of manual skill in the production



      with the use of machines and plastics. It has been reported that China has already
      developed automatic machinery, such as, feather cutting and cork boring lowering its
      cost of production significantly and their onslaught in the market for shuttlecocks has
      made the cluster based manufacturers defensive even in the domestic market. While
      direct transfer of automatic production technology may not be useful for the cluster,
      hybridization of the present skill based operations with the advanced technology will
      surely improve product acceptance in the export market and also competitiveness in
      the domestic market. Comparison of the performance in the export market with
      China, which has a high share of the global market for shuttlecocks, may appear
      absurd and realistic comparison with China may not be possible due to non-
      availability of data.

      The domestic market size of badminton shuttlecock as prevailed in 2004-05 may be
      estimated from the figures of indigenous production, import and export of the item.
      Thus, the domestic market size in 2004-05 stood at around Rs.279.3 million
      [Production : Rs.270 million + Imports : Rs.48.4 million – Exports : Rs.39.1 million].
      The growth in production being more or less stagnant, the domestic market size in
      2005-06 may be of the order of Rs.280 million.

1.4   STATE SCENARIO
      Uluberia has been considered as the only and famous shuttlecock manufacturing
      cluster in West Bengal.     However, it is reported that some units manufacturing
      shuttlecocks in Midnapore district have come up in recent times. The State’s share is
      almost 65% in terms of total shuttlecock production in India, while Jalandhar
      Shuttlecock Cluster of Punjab is supplying the rest.




                                          11                                             April, 2007
 Diagnostic Study Report – Shuttlecock Cluster in Uluberia




12                                             April, 2007
                                            Diagnostic Study Report – Shuttlecock Cluster in Uluberia


                                                                                CHAPTER - II

                                                                        CLUSTER SCENARIO

2.1   HISTORY OF THE CLUSTER
      The Uluberia Shuttlecock Cluster has very long and chequered history. It is reported
      that the Cluster began its activity during the era of pre-World War II through a
      prominent Bengali entrepreneur Shri J. Bose who initiated shuttlecock manufacturing
      in the Cluster. Shri Bose was earlier attached with a departmental sports goods shop
      at Esplanade, Calcutta and from that very moment he started watching the
      shuttlecocks carefully.   Ultimately, he was highly motivated to manufacture the
      badminton shuttlecocks and for this purpose he came to his native place at Uluberia,
      Howrah to launch his project. Though the duck feather, glue, threads, etc. were
      available in the nearby areas at Uluberia at that time, the bottom of the badminton
      feather, i.e. natural cork was then used to be imported from Portugal and Spain via
      Mumbai Harbour. Soon after establishment of his first unit for shuttlecock
      manufacturing, a large number of people in the area took up that activity as their
      main livelihood and it flourished over the years as a cottage industry covering
      number of villages and a part of town area under Uluberia Sub-division. As a result,
      Uluberia became famous in Howrah District in West Bengal for this traditional activity
      in operation since pre-independence era.

      An interesting feature is that the age-old manufacturing process followed in this
      traditional Cluster is so efficient and cost effective that the people associated with the
      manufacture of shuttlecock still overrule the use of machines. The risk involved with
      the considerable investment in such machines may be another dithering factor, but
      surely not a controlling issue. However, the motorized boring machines were
      introduced in the Cluster during the 60’s.      Since then no other modern machinery
      has been introduced by the firms for the development of the production process. The
      modernization in manufacturing process has come at the end of 90’s with the
      introduction of state of the art (new) materials such as, synthetic adhesives & corks,
      etc. which has substantially reduced the processing period in comparison with using
      original cork imported from Portugal & Spain via Mumbai Port earlier.




                                           13                                             April, 2007
                                            Diagnostic Study Report – Shuttlecock Cluster in Uluberia

        Around 50 – 60 micro enterprises have been set up for manufacturing badminton
        shuttlecocks in the Cluster during the last five years and growth during the period is
        almost 50% in terms of number of new units. The present total number of units in this
        cluster is around 150.

2.2     LOCATION OF THE CLUSTER
        Uluberia shuttlecock cluster is situated about 35 kms. away towards south-west from
        Howrah Railway Station. While Uluberia Railway Station under South-Eastern
        Railway and connecting two major railheads i.e. Howrah on one side and Kharagpur
        on the other is within 2 kms., the National Highway (NH 6) is hardly 1 km. away from
        the Cluster. The State Highway also passes near by the Cluster and it connects
        Midnapore district. Uluberia is also connected to Budge Budge under South 24-
        Parganas District through the river Ganges. As a result, the shuttlecock cluster has
        been enjoying strong locational advantage for expansion of its marketing network
        over the years.

2.3     OWNERSHIP, SIZE/CAPACITY, INVESTMENTS, PRODUCTION & TURNOVER
2.3.1   Ownership Pattern
        The ownership pattern of the existing units in the cluster is basically sole-
        proprietorship.

2.3.2   Size/Production Capacity
        Size of the units has been classified based on production capacity, investment range
        and turnover, the details of which have been presented in the Table 2.1 below:

                                                                                        Table : 2 .1
                  Size Distribution of Shuttlecock Manufacturing Units
                                                                                     (Rs. in ‘000)

         Sl.                            Average figures for each unit of the Cluster
         No.   Classification          Production         Investments Yearly Turnover
                                      Capacity/Day
          1.   Large Firms       More than 50 boxes            1000-1200             3000 - 4000
                                 More than 20 but less
          2.   Medium Firms                                      500-600             1500 - 2000
                                 than 50 boxes
          3.   Small Firms       Less than 20 boxes              100-200             800 - 1000




                                           14                                             April, 2007
                                             Diagnostic Study Report – Shuttlecock Cluster in Uluberia

        The aggregated annual production capacity of the units in the cluster was approx.
        750 thousand boxes (a box holds 10 shuttlecocks).

2.3.3   Investment
        The estimated aggregated investment of the units in the cluster was around Rs. 3
        Crore during FY : 2005-06 based on an average investment of Rs. 2 lakhs per unit.

2.3.4   Turnover
        The estimated total turnover of the units in the cluster was around Rs.15 Crore during
        FY : 2005-06.

2.4     CONCENTRATION OF THE UNITS
        The Uluberia Sub-division of Howrah district comprises 9 Panchayat Samities and 90
        Gram Panchayats. The Shuttlecock Cluster is concentrated at Jadurberia, Bahirtafa,
        Banitabla & Tantiberia under Uluberia Municipality and also at Baniban, Rajapur,
        Pirpur & Brindabanpur villages under Uluberia Block II in Uluberia Sub-division. Since
        pre-independence era, Shuttlecock cluster in Uluberia has been considered one of
        the age-old and traditional cottage-based industries in the country. Around 750
        families make their livelihood exclusively from shuttlecock manufacturing and bulk of
        the production takes place in home scale operation concentrated within a radius of
        about 3 kms. covering the aforesaid areas. There are around 150 units engaged in
        the manufacture of shuttlecock in this cluster. A map showing the location of Uluberia
        Shuttlecock Cluster in the district of Howrah is presented in Figure-2.1 below to
        understand the concentration of the units.




                                           15                                              April, 2007
                        Diagnostic Study Report – Shuttlecock Cluster in Uluberia




Uluberia Shuttlecock Cluster in Howrah District




                       16                                             April, 2007
                                              Diagnostic Study Report – Shuttlecock Cluster in Uluberia


2.5     TYPOLOGIES OF THE CLUSTER
        The Shuttlecock cluster at Uluberia is a large natural cluster of its kind and the nature
        of the cluster is mainly vertical where 8 – 10 big centric firms have been dominating.

2.6     PRINCIPAL STAKEHOLDERS
        During preliminary survey in the Shuttlecock cluster at Uluberia, the major stake-
        holders have been classified into three groups viz., large, medium and small principal
        firms to get a comprehensive idea about typology, business operation, technology in
        use, market so that a suitable strategy for better management could be adopted.

2.6.1   Large Principal Firms :
        There are around 10 large shuttlecock manufacturing units in the cluster, out of which
        5 units were surveyed. The large units are categorized based on their daily
        production capacity, which are not less than 50 rolls (boxes of 10 shuttle-cocks) per
        day.   Their investment lies in the range of Rs.10-12 lakhs per unit, while their
        average turnover for the last 3 years veers around         Rs.30-40 lakhs. In this type of
        firms, around 25-30 skilled workers have been deployed in each unit. These firms are
        playing the pivotal role as manufacturers-cum-sub-contracting firms & obviously
        dominating on the other stakeholders.

2.6.2   Medium Principal Firms :
        In this sector, the production capacity of the units varies between 20 and 50 rolls per
        day and units under this category are also playing dual roles sometimes as
        manufacturers-cum-merchant traders in the cluster. The average investment range in
        this category is around Rs. 5-6 lakhs and their average turnover during the last 3
        years was around Rs. 15-20 lakhs. The average employment is 12-16 persons in
        this category of firms. Altogether 10 units under this category have been surveyed,
        out of 60 such units (estimated) in the cluster. They are acting as balancing force
        between large and small firms as they procure orders from the sports shops at
        Kolkata and from other states directly and sometimes as sub-contracting agents on
        behalf of large manufacturers in the cluster.         Even they procure semi-finished
        products from the micro & small enterprises of the cluster and sell those after
        necessary finishing operations.

2.6.3   Small Principal Firms :


                                             17                                             April, 2007
                                              Diagnostic Study Report – Shuttlecock Cluster in Uluberia

        There are around 80 small shuttlecock manufacturing units in the cluster and
        production capacity of each of such units under this category is normally less than 20
        rolls per day. The average investment in this category is around Rs.1-2 lakhs and
        turnover of about Rs.8-10 lakhs. They mostly work on job-order basis and process
        orders procured from the large firms and also from the local buyers. The average
        employment in this type of firms is more or less 5-6 persons. The condition of the
        firms is really miserable, as they do not have clean work environment and adequate
        infrastructure for smooth operation.     They are totally dependent on the large &
        medium-sized principal firms throughout the year.

        Presently there exists no direct exporter in the cluster. However, there are some
        units, which manufacture export-quality shuttlecocks and indirectly deliver their
        produces to the export market through agents/intermediaries.

2.6.4   Local Buyers
        There are a number of local buyers among large and medium sized principal firms in
        the cluster who procure semi-finished shuttlecocks from the small sized principal
        firms and supply the finished product to the market under their brand names after
        proper finishing operations, checking and quality control measures. They also
        provide raw materials and advances to the firms operating as sub-contractors for
        developing good business relationship with them.          Around 20 steady local buyers
        are presently operating in the cluster market, out of which 4 sample units have been
        surveyed. The local buyers are doing 100% business with the principal firms of the
        cluster. Their average intake is around 800 boxes of shuttlecocks per day from the
        cluster itself. They are financially sound and their average turnover lies in between
        Rs.24-30 lakhs. They employ more or less 10 skilled workers on an average for
        finishing and quality control/checking of the semi- finished products. Most of such
        buyers have cash-credit facility with the local bankers.




                                            18                                              April, 2007
                                               Diagnostic Study Report – Shuttlecock Cluster in Uluberia




2.6.5   Industry Association
        Presently there exists only an unregistered weak Association under the name & style
        of Uluberia Badminton Shuttlecock Association, the office being located at Bahirtafa.
        The Association started functioning in 1997 with an objective to safeguard the
        interests of the members of the cluster for common problems, such as, wage
        negotiation, supply & price fixing of raw materials particularly during crisis period, etc.
        The number of present members is around 112 and the Association is being
        governed by a body of 13 executive members including a Legal Advisor. The
        President of the Association is the supreme post in the Core Committee, while the
        post of Vice-President is the second highest in the governing body. However, the
        Secretary has been designated to discharge all the routine duties on behalf of the
        Association.

 2.7    OTHER CLUSTER STAKEHOLDERS
2.7.1   Feather Merchants :
        There are more or less 8 feather merchants in the cluster, of which 3-4 are
        dominating. They are financially sound and most of them have cash-credit facilities
        with the local bankers. They are sub-dealers acting as agents in and procure duck &
        hen feathers from the border areas of Bangladesh, viz., Balurghat & Gangarampur
        (South Dinajpur), Koolie & Kandi (Murshidabad), Gajole (Malda), Lohapur (Birbhum),
        etc. and also from local areas like Arambagh (Hooghly). They have been controlling
        the market price and availability of feathers and dominating over the principal firms all
        the time. According to the cluster stakeholders, the feather merchants do not co-
        operate with the principal firms and create artificial crisis frequently in absence of
        local raw material bank in the cluster. Moreover, the principal firms complained that
        the feather merchants are also dishonest in terms of business relation as they always
        try to cheat by selling inferior quality of feathers, belonging to grade-4 to grade-6, in
        large quantities as adulterant in a bag containing 70,000 feathers and costing
        Rs.50,000/-.




                                             19                                              April, 2007
                                              Diagnostic Study Report – Shuttlecock Cluster in Uluberia




2.7.2   Cork Merchant :

        There are 4-5 local traders who supply Chinese synthetic and natural cork-dust
        bottoms imported through the agents in Jalandhar (Punjab).                 According to the
        principal firms of the cluster, the cork traders are friendly and supply the material at a
        reasonable cost throughout the year. One carton costing around Rs. 17,000 contains
        5760 pcs., i.e. 40 gross of corks. Though there is a huge demand for this item, there
        is not a single unit in the cluster producing these corks. There are also 2-3 large
        principal firms who produce shuttlecock using corks imported from Portugal via
        Mumbai and they are procuring the material directly from the agents in other states
        for their captive consumption. The average investment in this trade is around Rs.4-5
        lakhs, while the turnover is on an average Rs.24-30 lakhs.

2.7.3   Cylindrical Box Manufacturer
        It is very interesting to note that there is only one cylindrical (paper-board tubes) box
        manufacturer in the cluster. The promoter of the unit informed during the survey that
        he is supplying the material at the same rate of Rs.3 per box since past 10 years.
        Apparently, the promoter is found to be very concerned for the cluster and is co-
        operating in nature. The investment of this unit is around Rs.15 lakhs and sales
        turnover touched more or less Rs. 30 lakhs during FY : 2005-06.

2.7.4   Machinery Manufacturer
        There is only one machine manufacturer in the cluster under the name & style of M/s.
        Raju Engineering Works at Jadurberia. Though the unit has taken SSI registration in
        the year 2005-06, its promoter along with a technician from the area is producing the
        motorized boring machines and bid scissors on job-order basis since 1990. The
        prevailing unit cost of boring machine with 1 HP motor and bid scissors are Rs.
        20,000 and Rs. 1,500 respectively and the average life of such machinery is around
        15-20 years with some minor repairing and servicing done periodically. However, the
        capability of this unit may not permit undertaking development of automatic cork
        thrusting machine and/or automatic feather cutting machine.




                                             20                                             April, 2007
                                             Diagnostic Study Report – Shuttlecock Cluster in Uluberia




2.7.5   Manufacturer of Plastic Cap for Cylindrical Box

        There is only one injection moulding unit for manufacturing plastic caps for cylindrical
        boxes in the cluster. The promoter of the unit has invested approx. Rs.1 lakh for his
        project and the unit has generated 3 employments including the promoter. The
        promoter is also engaged in some other activities.

2.7.6   Printing Press
        There are three (3) printing units with letterpress providing business services to the
        principal firms within the cluster. Their average investment is around Rs.50,000/- and
        average employment around       2 – 3 persons including promoters.

2.8     OTHER CLUSTER ACTORS
2.8.1   Nationalised Banks
        There are 5 banks including one co-operative and one grameen bank in the cluster,
        out of which 2 (two) banks have been surveyed. While West Bengal Grameen Bank,
        Baniban Hattala Branch is found to be more active in extending financial assistance
        to the principal firms in the cluster, the UCO Bank is observed to extend similar
        support more to the cluster merchants. However, both the banks informed that their
        relation with the principal firms is more or less satisfactory and expressed their
        readiness for extending more credit flow to the cluster people for increasing their
        market share in near future.

2.8.2   Uluberia I & II Block Development Offices & Panchayat Samities
        It has been observed that both the BDOs and the Panchayat Samities within the
        cluster are very active and concerned for the cluster people. It is also interesting to
        note that Uluberia II Panchayat Samity has already taken few programmes for
        promotion of duckary farms at Uluberia in collaboration with District Office of the
        Animal Husbandry with an attempt to ease out the supply crunch of duck feather
        prevailing in the cluster.



2.8.3   District Industries Centre (DIC), Howrah




                                            21                                             April, 2007
                                             Diagnostic Study Report – Shuttlecock Cluster in Uluberia

        DIC, Howrah has been extending continuous support and assistance to the
        entrepreneurs in the cluster over the years in connection with getting SSI registration,
        financial linkages with bank, subsidies/incentives from the government, etc. DIC,
        Howrah    organized    seminars,   workshops,      awareness       programmes,        etc.   in
        collaboration with WEBCON, RIP-Howrah Project Office and Howrah Zilla Parishad
        for the development of the cluster people.

2.8.4   WEBCON, RIP – Howrah Project Office
        WEBCON, Howrah Project Office organized some Sensitization Programmes, Rural
        Entrepreneurship Development Programmes (REDP), Skill Development Training
        Programmes on Shuttlecock cluster under RIP of SIDBI and provided escort services
        to the entrepreneurs in preparation of project scheme, bank linkages, etc.

2.8.5   Organisations having Weak Relationship with the Cluster
        There are few organizations having weak linkages with the cluster. These are :-
           Small Industries Development Bank of India (SIDBI);
           National Bank for Agriculture & Rural Development (NABARD);
           Lead Bank Office, UCO Bank, Howrah;
           Jadavpur University, Production Engineering Deptt. Under TEQIP;
           Central Institute of Plastic Engineering Technology (CIPET);
           District Office of Animal Husbandry, Govt. of West Bengal.

 2.9    PROCESS TECHNOLOGY & FLOW CHART
        White duck feathers are generally used for the production of shuttlecock, although
        sometimes hen feathers are also used for the cheaper variety of the product. The
        process of manufacture of shuttlecock is neither very critical nor very simple.

        The feathers are first of all sorted out for selection of good variety of feathers.
        Generally feathers are sorted into six grades (Grade 1 to Grade 6) in the Cluster.
        Then the feathers are washed with detergent for 30 to 60 minutes. Then, these are
        treated with ultramarine blue (optical whitener) for imparting the brightening effect.
        The washed feathers are then properly dried and cut to 3½” size with the help of
        scissors. The feathers are, thereafter, rounded off and pruned at the top.




                                            22                                             April, 2007
                                      Diagnostic Study Report – Shuttlecock Cluster in Uluberia

In the next step, good quality cork bottom is taken for boring. Altogether 16 nos. of
bores are drilled on corks with the help of cork boring machine. The cut and sized
feathers are then inserted manually into such bores one by one and fixed up with
glue. Thereafter, 16 feathers thus inserted into the cork are knotted with cotton
thread and gelatin is then smeared over the knotted threads. Then silk or cotton
ribbon is pasted at the joint of the cork and feathers at the base of shuttlecock. A
brand sticker is also put round the cork and attached with the glue at the base of the
cork on its middle.

Finally, the shuttlecocks are weighed in a balance and the weight is adjusted with the
help of the small steel pins. The shuttlecocks used for indoor games should have a
weight of 70 to 74 grains and those for the outdoor games 82 to 86 grains. The
shuttlecocks are then packed in cylindrical paperboard boxes fitted with plastic caps
at both ends, each box containing 10 shuttlecocks. After packaging the product is
stored for dispatch to the market. Each box is called as one roll in the trade.

A flow chart depicting the process of manufacture has been presented hereinafter in
Figure-2.2 :




                                    23                                              April, 2007
                                             Diagnostic Study Report – Shuttlecock Cluster in Uluberia


               PROCESS FLOW CHART FOR SHUTTLECOCK MANUFACTURING



                                       Sorting, Grading of
                                        Duck Feathers


                                    Cleaning & Washing of
                                       Sorted Feathers


                                       Cutting & Sizing of
                                       Washed Feathers


                                  Boring of Corks followed by
                                Insertion of Feathers with Glue


                     Stitching of overlapping feathers with Cotton Thread
                          followed by Gelatin Smear Rounding Over



                             Fixing up the Silk Ribbons at the Joint
                              between Cork Base & Feathers and
                               Brand Stickers in the Middle Base


                                Quality Control Checking and
                                Packaging into Cylindrical Box


2.10   PRESENT CLUSTER MAP
       A cluster map is different from geographic map of a location and it describes through
       a diagram the important cluster actors and their business related inter-linkages. The
       main objective of the cluster map is to understand the summary view of the cluster.

       A dotted line in the map denotes the weak linkages and a bold line denotes strong
       and stable intro-linkage with optimum object.          Similarly a dotted line rectangle
       denotes organization with weak intra-linkages and a bold lined rectangle denotes
       strong & stable intra-linkages. The present cluster map of Uluberia Badminton
       Shuttlecock cluster has been presented in Figure-2.3 in the next page. It shows that
       backward linkage is very weak, i.e., the raw materials agents/suppliers within the
       cluster. Some important commercial services like machinery supplier, accessories
       supplier, etc. in real sense are also absent in the cluster.



                                            24                                             April, 2007
                                                                Diagnostic Study Report – Shuttlecock Cluster

                            PRESENT CLUSTER MAP
                          Commercial Service Providers
                      BANKS & FIs             TRANSPORTERS


                      SHUTTLECOCK MANUFACTURING UNITS
Forward Linkage     (Total annual turnover approx. Rs. 15 Crores)              Backward Linkage
                               ULUBERIA BADMINTON
                             SHUTTLECOCK ASSOCIATION
 DEALERS IN                                                                           RAW
OTHER STATES                                                                        MATERIALS
                                      Large Units (10)                             SUPPLIERS /
                                                                                    AGENTS /
   SPORTS                                                                           BROKERS
  SHOPS AT
  KOLKATA                           Medium Units (60)

                                                                                 MACHINERY &
    LOCAL                             Small Units (80)                            PACKAGING
   BUYERS                                                                         SUPPLIERS




                            Support Service Institutions

     PANCHAYAT SAMITIES & BDOs      DIC, HOWRAH            WEBCON, HOWRAH P.O.


                                        25                                                       April, 2007
                                                                                             Diagnostic Stu


2.11   BENCHMARKING WITH JALANDHAR SPORTS GOODS CLUSTER
       A cluster involved exclusively in the manufacturing of badminton shuttlecocks
       could not be located either in the State of West Bengal or in the Country as a
       whole. However, Jalandhar Sports Goods Cluster in Punjab has been known for
       producing shuttlecock along with other sports goods over the years. Though
       shuttlecock is not a traditional item of manufacture in the Jalandhar Sports
       Goods Cluster, its manufacturing was started later in the cluster with an aim of
       securing the share of export market. The products of Jalandhar cluster have thus
       export orientation. Against this background the Jalandhar cluster has been
       selected as the benchmark cluster.

2.11.1 Jalandhar Sports Goods Cluster
       The cluster is mostly dependent on subcontracting from exporters. Most of the
       units manufacturing shuttlecocks in the cluster do not carry out all processes in
       their units. Large firms generally carry out the merchandized operations while
       medium enterprises are generally engaged in manufacturing semi-finished
       products for supplying to the larger firms and merchant-exporters.

       Jalandhar Sports Goods Cluster over a period of 120 years of its existence has
       crafted a place for itself in the global sports goods market. It has emerged as a
       reliable supplier of sports goods to the international markets, catering to the top
       brands like Reebok, Adidas, Puma, Gilbert, Mitre, Kookaburra, Slanzenger,
       Gracy Nicolls, John Newbery, Just Hockey etc and clubs like Manchester United,
       Chelsea, Liverpool, etc. The Jalandhar sports goods cluster is a unique example
       of a transplanted cluster where a major segment (entrepreneurs, workers
       including suppliers) started functioning in India’s pre-partition days. The items
       taken for manufacturing in the beginning were tennis, footballs, cricket bats &
       balls, field hockey, etc.. With the passage of time new items, such as, badminton
       racquets, shuttlecocks, etc. have also been added significantly.




                                                                  26
                                                                                            Diagnostic Stu




      These units are interested in technology upgradation and introduction of modern
      machinery for mass production. They have taken cost controlling measures for
      global competition on the export front and the cluster has also excellent
      networking particularly in the field of global marketing, quality control aspects.
      However, they faced serious threats in procuring goose feathers from China
      during the phases of bird flu.

2.11.2 Uluberia Shuttlecock Cluster
      The Uluberia Shuttlecock Cluster is large and natural of its kind in comparison
      with Jalandhar Sports Goods Cluster. Almost all the units at Uluberia carry out all
      the operation under home scale. The production in the cluster is mostly
      performed on job/work order basis and marketing of the product is canalized
      through local buyers and sports goods shops located in Kolkata. But in most of
      the cases, linkage with the other States, such as, Punjab, Delhi, Uttar Pradesh,
      Maharashtra, Tamil Nadu, Kerala, generally exists with the large firms producing
      shuttlecock under their brand names. The small firms/job-workers are usually
      depending on the large firms & local buyers. There are number of medium-sized
      enterprises who play the role of both employers and traders for supplying their
      produces both to the local buyers as well as to the agents outside the State. In
      the area of export marketing and market promotion, Uluberia Shuttlecock Cluster
      is weaker than Jalandhar Cluster. Most of the owners in the Uluberia Cluster are
      financially weak and the credit flow from banks to this cluster is also very weak
      as compared to the Jalandhar Cluster. However, the cluster is also facing similar
      problem as faced by Jalandhar Cluster in procuring duck feather via agents from
      Bangladesh.




                                                                 27
                                                                                               Diagnostic Stu




                                                                           CHAPTER – III

                                               ANALYSIS OF BUSINESS OPERATION

3.1      GENERAL
      Analysis of Business Operation (AOBO) is a very important tool for diagnosing the

      Cluster structures and also the identification of its problem and prospects in the

      growth path. The AOBO for Shuttlecock Cluster at Uluberia has been presented

      considering the following factors :-

            Present Production System
            Raw Materials Procurement System
            Present Marketing System
            Entrepreneur & Skill Manpower
            Financial Aspects
            Business Development Services.


3.2      PRESENT PRODUCTION SYSTEM
      The process of manufacturing shuttlecocks at Uluberia is mainly manual in nature

      involving human skill operations. The predominance of human-skill in the cluster is

      evident from the fact that all of the sub-contractors, most of the micro entrepreneurs

      and many of the owners of the larger units are themselves skilled persons and are

      personally involved in production/supervision of production process to maintain

      product quality. In view of this, the production system is characterized by low

      productivity. However, it is possible to introduce a few machines to improve the



                                                                      28
                                                                                      Diagnostic Stu

productivity without losing its exquisite shape and quality. The following table

(Table – 3.1) highlights the areas where mechanization of the production system may

be adopted for improvement of productivity.




                                                               29
                                                                                                             Diagnostic Stu


                                                                                      Table : 3.1

          Possible Areas of Mechanisation in Shuttlecock Manufacturing Units

     Sl.          Name of          Present Mode of        Effect on Quality and         Scope for New
     No.         Operation           Performance               Productivity                Machinery
      1     Cutting of Duck/      Manually    using      Low     productivity    &     Automatic
            Hen Feathers          scissors               inconsistent        sizes     feather-cutting
                                                         resulting high rejection      machines would
                                                         &       increase        in    improve
                                                         production cost               productivity
      2     Boring of Corks       Mechanically using     Low     productivity    &     Automatic     cork
                                  motorized     boring   depth of boring is not        thrusting machine
                                  machine with 16        uniform                       would      improve
                                  punches one by                                       quality          &
                                  one for 1 cork                                       productivity
      3     Weighing   of the     100% Manual            Low productivity and          System analyzer
            Complete    feather                          strain on eye-sights of       for quality control
            &Quality   Control                           workers                       & weighing by
            Checking                                                                   digital balance

For the micro units operating in the cluster, it may be possible to undertake any

mechanization of operation through installation of feather cutting machine and digital

weighing balance which are indigenously available. However, the automatic cork-

thrusting machine is a costly machine required to be imported from China and it is

characterized by high productivity. As such, although it may be difficult even for

individual units which are large in nature, a common facility center with a centralized

facility for cork thrusting with the above machine may be beneficial for the cluster.

Installation of feather cutting machine and digital weighing balance will not have

much effect on the employment of manpower in the cluster. This is because even if

the feathers are cut to size using feather-cutting machine, manpower will be required

for finishing of the feathers after their cutting.



                                                                     30
                                                                                                  Diagnostic Stu

      From the above analysis, it may appear that workshop on technology demonstration

      and technology orientation is necessary and some international BDS may help in this

      aspect.

3.3      RAW MATERIALS PROCUREMENT SYSTEM
      The main raw materials required for manufacturing shuttlecocks are white duck

      feathers, synthetic rubberized corks, show tapes, synthetic adhesives, cotton threads

      and miscellaneous consumables like printed label, plastic cap, cock holding boxes,

      etc. The feathers and corks comprise around 50% of the total cost. All the above raw

      materials and consumables are procured from local agents/dealers throughout the

      year. However, the supply of feather is irregular in nature as the local agents collect

      the feathers from the dealers at Balurghat of South Dinajpur, Dhulian of

      Murshidabad, etc. who in turn collect the materials from the dealers in Bangladesh.

      The main supply of duck feathers from the villages at border areas of Bangladesh are

      being closed gradually and the number of check-posts between Barasat (North 24-

      Parganas) and Balurghat (South Dinajpur) has been increased considerably for

      controlling free trade with Bangladesh. The resultant effect is delay in timely supply

      as well as increase of price on duck feathers due to imposition of tax, duty, etc. by the

      government.

      Majority of the raw materials excepting synthetic corks, which is being imported

      from China, are sourced from within the cluster. In most of the jobbing units, raw

      materials are supplied by the large principal firms. The dealers’ network for the



                                                                       31
                                                                                            Diagnostic Stu

supply of raw materials in the cluster is not so organized. However, there is no

scarcity of raw materials except duck feathers in the cluster. The large principal

firms, however, have a stable network for procuring the raw materials. But most of

the principal firms are only in the cottage scale and they find financial constraints for

high inventory and also feel insecure in getting the right grades of the raw materials.

Whenever introduction of any new material was reported, the cluster based firms tried

to adopt the same with minimum change in the existing process or equipment.          The

absence of the exchange of information amongst the cluster players is the main cause

for the delay in technology upgradation. Cases of both successes and failures in

process innovation were kept as secrets so that they did not create the desired

demonstration effect among the other units.

The principal firms have been facing an acute problem in the regular supply of duck

feathers to their units. The main reasons behind this problem are :

   i)      The requisite duck feathers (i.e., 6 feathers from each wing) are natural
           product and its supply cannot be ascertained until & unless a total
           farmhouse planning on duckary has been made by the Directorate of
           Animal Husbandry, Govt. of West Bengal;

   ii)     The awareness on the value for waste duck feathers has created more
           intermediate agents/brokers in the border areas of South Dinajpur,
           Murshidabad, etc. resulting in increase of hoarding and artificial demand
           for the material;

   iii)    The main supply of duck feathers from the villages in border areas of
           Bangladesh is falling gradually and the number of check-posts between
           Barasat (North 24-Parganas) to Balurghat (South Dinajpur) has been


                                                                 32
                                                                                             Diagnostic Stu

            increased considerably for controlling free trades with Bangladesh. The
            resultant effect is delay in timely supply as well as increase in price on
            duck feathers due to imposition of tax & duty by the government;

    iv)     An illicit relationship has been developed between the agents from
            Balurghat and Uluberia who control the price of feathers throughout the
            year. They are also backed by some large principal firms who used to
            take only the special quality feathers (i.e., grade 1) for their production at
            a very high price causing increase of price as a whole.

The shortage in supply of duck feather has been causing great damage to the Cluster

and often creating mistrust among the stakeholders. Most of the principal firms in the

Cluster would like to procure feathers secretly at a higher rate whenever possible to

carry on their production. This practice has not only boosted the greediness of the

raw material agents but also caused serious threat on solidarity of the Association.

In 2006, the price of duck feather shot up rapidly within a very short span of time and

the principal firms of the Cluster were at a loss to tackle the situation. Most of them

were forced to close their units at that time for want of feather, the principal raw

material, at a price within their reach.

The Uluberia Badminton Shuttlecock Manufacturing Association, the only

unregistered association of the Cluster since 1997, came forward to tackle the burning

issue and they declared strike against the local feather merchants in the cluster for

putting a pressure on these merchants to reduce of price and the strike was continued

for about 2 months. However, the strike was not successful due to some unknown

reasons. That was the crucial set back for the Association and the mistrust was



                                                                 33
                                                                                               Diagnostic Stu

      developed slowly against each other in the Cluster. However, of late, the normal

      production has resumed in the cluster once again.

      In view of above, a common raw material bank may be set up within the cluster to

      avert the artificial scarcity of raw materials.

3.4       PRESENT MARKETING SYSTEM
3.4.1     Major Markets :
      The major market for shuttlecock is spread over the sports shops in Kolkata and

      North India. This apart, there exists a market linkage with other states like, Punjab,

      Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka, Rajasthan, Orissa, Assam, etc.

      The products are consumed by the local clubs and associations as well as by the

      national tournament committees in the above places. The major brands of the

      products of the cluster are ‘Albatross’, ‘Parrot Fly’, ‘Penguin’, ‘Adventures’, etc.

      The cluster could not make a headway for direct export of its products, though the

      products are being exported from India for the past 50 years in a small way. Most of

      the principal firms are not aware of the procedures & formalities of exports market.

      They do not have any price list, product leaflets/brochures to attract the customers.

      Also they do not have any promotional website to share their experiences with

      international market.

3.4.2     Product Composition and Price Range
      There are 6 grades of shuttlecocks (Gr.-1 to Gr.-6) as produced in the cluster. The

      Grade- 1 shuttlecock is a special type of product while Grade- 2 to 3 are also

      considered as products of superior quality. Large firms usually produce the superior


                                                                      34
                                                                                             Diagnostic Stu

   grades and small enterprises, other than job-oriented units, prefer to produce the

   inferior qualities, i.e., Grade- 4 to 6 for capturing the local markets in Kolkata. The

   price ranges of above grades are as listed below: -

                   Grade            Price Range (in Rs./Box)
                      1                      240 - 250
                      2                      220 - 230
                      3                      180 - 200
                      4                      140 - 150
                      5                      100 - 120
                      6                       60 - 80


3.4.3   Brand Image
   Branded products are sold by the large principal firms directly through their dealers’

   network, while the unbranded products are sold in the local sports shops in Kolkata,

   the sales volume of which is not so significant. However, majority of the production

   enters into the market by affixing a brand name, which bears no brand image for the

   cluster. Some brands, as mentioned earlier, have an established brand image in the

   national market over the decades. The customers of these branded products are ready

   to pay higher price because of their established superior quality. But the principal

   firms, in general, do not have the capacity to bear large expenditures towards

   advertisement and sales promotion. Thus, the market intervention by creating a

   common brand for the Cluster may improve the scenario.

3.4.4   Market Trend
   The market trend for shuttlecock industry at Uluberia is somewhat oligopoly by

   nature where numbers of large principal firms are limited though the entry barrier in


                                                                    35
                                                                                           Diagnostic Stu

the market is very low and rivalry is high. However, the demand for the branded

products has been increasing and a number of new units have come up. On the other

hand, the profit margin, in general, is decreasing gradually creating an alarming

situation for the sustenance of the old units. In spite of such growth of new entrants,

particularly in the form small enterprises, the all-India market size of the products

from the cluster has not been able to register the expected level of growth due to stiff

competition from the branded products. The present aggregated annual business

volume of the cluster is estimated at around Rs.15 crores, However, the cluster is

observed to have a potential for reaching the turnover of around Rs.21 crores within a

span of 4 – 5 years, if proper planning for development are taken up.

At present, the following marketing channels are present in the Cluster: -

   a. Subcontracting under the large principal firms;
   b. Supplying to the local sports shops in Kolkata;
   c. Direct sales to the agents/sports shops in other states.

It has also been revealed during survey that under invoicing of local products and also

import of complete shuttlecock from China has been causing unequal competition for

the local Industry. With the lowering of the tariff barriers under the WTO regime,

direct import of complete shuttlecocks from China is expected to happen in a big way

if some appropriate corrective actions are not taken. The firms of the cluster could not

produce the export quality of product due to narrow band of operation and also

backdated technology. As a result, at the middle and the lower end, more and more




                                                                 36
                                                                                                  Diagnostic Stu

      markets are being captured by the countries like China, Indonesia etc. due to their

      mass production capacities & cheap labour and consequent cost competitiveness.

3.5       ENTREPRENEUR & SKILLED MANPOWER
      As the products of the cluster is specialized in nature and are mostly produced

      manually, its production requires a lot of human skill. Most of the enterprises within

      the Shuttlecock Cluster at Uluberia are traditional artisan families. The owner and

      other members of the family are playing the role of manager, skilled worker and

      sometimes they also play the role of marketing manager for their units. Though the

      average education level of the owners and their workers is Class VIII to Secondary

      School Leaving Certificate (SSLC) standard, they do not keep accounts and office

      records properly. The entrepreneurs, in general, are not interested of availing of the

      services of outside consultants. The level of awareness of the entrepreneurs of the

      cluster, especially in machine application and marketing, is not upto the mark. The

      reason for concentration of the Cluster at Uluberia is mainly due to the fact that the

      workers, in general, learn their traditional skill through on the job experience from the

      cluster itself.

      There is not a single training institute in the cluster for skill development of the

      workers. During survey it is also revealed that there is no place for unskilled worker

      in the cluster, but their traditional skill developed through on the job experience is

      really marvelous. As a result the cluster units can compete in the all-India market

      with Chinese shuttlecocks particularly for practice games. However, the workers in



                                                                        37
                                                                                               Diagnostic Stu

      the cluster are paid poorly and even they do not get jobs round the year. Against this

      background setting up of a Training-cum-R&D Centre for the cluster may be useful

      for the cluster to meet the prevailing shortage in supply of adequately skilled

      manpower for the principal firms.

      It is also viewed during survey that the common set up for working in a family is not

      spacious and well-structured resulting in deterioration of quality of materials during

      handling & storage, sluggish growth in production process and even poor finishing of

      the products. Moreover, a worker in this cluster has to work longer hours at a stretch

      for earning his daily livelihood. This strenuous job over the years has been creating

      tremendous pressure on health of the workers adversely affecting their performance

      relating to product quality maintenance. Therefore, a health care scheme for the

      workers may be thought of for extending medical facilities to the ailing workmen.

3.6      FINANCIAL ASPECTS
      Finance has been a great problem for the units in the cluster until recent times.

      However, the local bank branches, such as, West Bengal Grameen Bank, Baniban-

      Hattala Branch, State Bank of India, Banitabla Branch, UCO Bank, Banitabla Branch,

      Allahabad Bank, Uluberia Branch, etc. have started extending financial support to the

      cluster firms for the last 3 years mainly after stepping in of WEBCON, RIP-Howrah

      Project Office with its escort services.

      The main reason behind the poor credit flow to the cluster is limited knowledge of the

      entrepreneurs, particularly in preparation of bankable scheme, security aspects, cash-



                                                                      38
                                                                                                Diagnostic Stu

      credit accounts, etc. Even they are afraid of Bank Managers to discuss on the loan

      matters at the time of acute need. Most of the firms do not have SSI registration with

      DIC, Howrah as well as other registrations, such as, income tax, professional tax,

      VAT, etc.

      A speciality of this industry is high volume of working capital requirements and its

      seasonal nature. Working capital requirements are as high as 15 times of the fixed

      capital or more in some cases. In order to safeguard the units during the crisis period

      and to meet the peak season demand, procurement of duck feathers and synthetic

      corks, the main raw materials for the industry in high volume, are absolutely

      necessary for uninterrupted operation and this involve huge working capital

      requirements.

3.7      BDS DEVELOPMENT
      Business Development Service does practically not exist in the Cluster. BDS in the

      area of production & technology, machinery, sales, export promotion and managerial

      aspects including various documentation need to be developed.




                                                                      39
                                                                                                          Diagnostic Stu




3.8       CURRENT INSTITUTIONAL MATRIX
      The current institutional matrix depicts the relationship among the various

      stakeholders in the cluster. The nature of relationship between the cluster stakeholders

      is not always very clear and direct. Based on the role of these various support

      institutions, etc. and the strength of their inter-linkages, they are giving full point

      scale. The score ‘1’ indicates very weak linkage, while score ‘5’ indicates excellent

      inter-linkage between the cluster stakeholders.

      The following institutional matrix (Figure-2.4) highlights the current relationship

      between the stakeholders. An excellent relationship and inter-linkage among the

      stakeholders cannot always solve the problems, but it may source raw materials,

      technology, finance, marketing, etc. for overall growth of the cluster. It is, therefore,

      necessary that inter-linking among the stakeholders should be strengthened by

      organizing periodical meetings and through motivation.




                                                                                       Figure-2.4
                             CURRENT INSTITUTIONAL MATRIX
                                                                                 Dte. of        Uluberia
                             Uluberia – I & II
                                                 DIC,              WEBCON,       Animal         Badminton
                             Panchayat                    Banks
                                                 Howrah            Howrah PO     Husbandry,     Shuttlecock
                             Samities/BDOs
                                                                                 Govt. of WB    Association
       Uluberia-I & II
       Panchayat             -                   5        4        4             4              1
       Samities/BDOs
       DIC, Howrah           5                   -        5        5             3              2
       Banks                 4                   5        -        4             3              1
       WEBCON, Howrah        4                   5        4        -             4              4



                                                                         40
                                                  Diagnostic Stu

Dte.  of    Animal
                     4   3   3   4        -   1
Husbandry, WB
Uluberia Badminton
Shuttlecock          1   2   1   4        1   -
Association




                                     41
                                                                                              Diagnostic Stu



3.9      PRESSURE POINTS
      During the period of survey and discussions with some principal firms, other actors,

      Association, etc., the following pressures points for the cluster have been noted :

            Total dependence on raw material (duck feather) supply from Bangladesh
             and its irregular supply & high price;
            Poor marketing knowledge particularly in the field of export marketing;
            Mostly manual operation involving only simple machinery causing low
             productivity an inaccurate quality control;
            Stagnant level of skill of the producers;
            Poor infrastructure under home scale operation;
            Poor credit flow to the Cluster from banks/financial institutions;
            Unhealthy marketing practice causing low value realization & profit margin;
            Threats from imported Chinese products;


3.10     BUILDING SOCIAL CAPITAL
      While unavailability of the required materials and support for product and process

      development, lack of the market data and a lacuna in the policy measures have been

      identified as the root causes of the maladies being faced by the cluster. The root

      causes may easily be identified as the absence of an effective common forum.

      Reluctance of the cluster actors to share market related information and exchange

      technological achievements has seriously impaired the capacity of the cluster to meet

      emerging challenges in these areas. Again a unified face of the cluster could have

      helped it to achieve support from the Government.

3.11     VALUE CHAIN ANALYSIS




                                                                      42
                                                                                         Diagnostic Stu

The value chain analysis for production of shuttlecocks in the cluster is presented in

Figure 2.5 given hereinafter:




                                                                43
                                                Diagnostic Stu




            Raw Materials
    (Feathers, Corks, Ribbon, Glue,
            etc.) Rs.16.00

          Transportation, etc.
  Value after Transportation Rs.16.50
            (Addition = 3%)


         Sorting, Washing, etc.
         Value after Washing
       Rs.16.66 (Addition = 1%)

          Cutting and Sizing
 Value after Cutting & Sizing Rs.17.00
            (Addition = 2%)


   Corks Boring & Fixing of Feathers
 Value after Boring & Stitching Rs.19.50
            (Addition = 15%)

         Finishing and Packing
Value after Packing & Finishing Rs.20.50
             (Addition = 5%)


         Manufacturer’s Margin
   Value after Manufacturer’s Margin
      Rs.24.00 (Addition = 17%)


       Traders’/Exporters’ Margin
  Value after Traders’ Margin Rs.30.00
            (Addition = 25%)
                                           44
                                                                                                                                        Diagnostic Stu


                                                                                                        CHAPTER - IV

                                                                                                       SWOT ANALYSIS

 4.1    GENERAL
   A SWOT analysis of the cluster has been made as this will be useful for proper understanding of the capabilities of the cluster to
   face the future challenges.
   This analysis of strength, weakness, opportunities and threats has been undertaken in terms of the following parameters:

             Markets
             Technology
             Inputs Availability
             Innovation Capabilities
             Human Resource / Skill
             Business Environment

 4.2    SWOT ANALYSIS
4.2.1   Strength

        Market
             Continuously growing production due to gradual growth of new units resulting
              in increased availability of products in the market.
             Quality of the product is acceptable to the domestic market for practice
              games.
             Better suitability of the product for practice games due to its higher longevity
              as compared to that of the imported variety.

        Technology
             Standardized traditional technology involving mainly human skill with little
              involvement of machinery.

        Inputs Availability
             Easy availability of standard quality of inputs like plastic cork, cotton thread,
              cotton / silk ribbon, tape, glue, packaging materials, etc.

        Innovation Capabilities




                                                                                                  45
                                                                                               Diagnostic Stu

           Ability to operate non-standardized simple machines supplied by local
            fabricators

        Human Resource / Skill
           Easy availability of skilled workers.
           Existence of capable producer trainers for imparting of traditional skill to new
            workers on the job.

        Business Environment
           More or less stable business environment helping the cluster for its existence
            over a period of 50 years.
           Very good rail and road connectivity with different parts of the State and the
            country assuring easy transport of raw materials and finished product.

4.2.2   Weaknesses

        Markets
         Lacking cost competitiveness of product in the global market.
           Lack of export market information and poor accessibility to export market.
           Low profit margin of the producers, the lion’s share taken by the traders.
           Low level of consciousness of the producers on brand building.
        Technology
           Traditional skill based technology with low productivity and high process
            wastage.
        Inputs Availability
         Unstable availability of duck feathers, the major raw material from
            Bangladesh through agents.
           High & unstable cost and inconsistent quality of duck feather.

        Innovation Capabilities
         Low willingness for adaptation for new methods and technology.

        Human Resource / Skill
           Absence for facilities for human skill upgradation.




                                                                    46
                                                                                            Diagnostic Stu

           Non-availability of trained personnel to operate sophisticated machinery like
            feather-cutting machine, cork-boring machine, etc.

        Business Environment
           Absence of BDS providers to provide necessary supports at the time of
            needs.
           Lack of reliance on the expertise of the consultants for obtaining their
            expertise knowledge.

4.2.3   Opportunities

        Markets
           Prospects of exports due to rapidly growing global demand of sports goods.

           Increased awareness of global market and knowledge of export procedures
            may open up opportunities for exports of the product.

           Improvement of product quality may increase domestic and export market
            opportunities.

        Technology
           Potential for improvement of productivity with appropriate technical back-up
            and installation of advanced machinery.

        Inputs Availability
           Sustained availability of duck feathers from indigenous sources may ease out
            the prevailing problem in its availability from Bangladesh.

        Innovation
           Participation in trade fair, exhibition and also training programmes &
            workshops may lead to higher productivity, better quality and market
            opportunities.

        Human Resource / Skill
           Prospects of improvement in productivity, quality and efficiency with the
            imparting of technical and managerial awareness workshops and skill
            upgradation programmes.


                                                                    47
                                                                               Diagnostic Stu

Business Environment
   Changing business environment have prospects of opening of opportunities
    for new entrance in the cluster.




                                                      48
                                                                                              Diagnostic Stu




4.2.4   Threats

        Markets
           Imported product from China and other countries in large quantities may
            adversely affect the domestic industry.

           With traditional production systems, the cluster-based firms may not be
            observing all norms laid out for fair trade and this may restrict entry to the
            export market in the developed countries.

           Any irregularity in the supply of duck feathers and other raw materials may
            adversely affect production and also market.

        Technology
           Modernization of big units may create idle capacity for small individual firms.

           Adoption of advanced technology and machinery in other clusters in the
            country may pose threat to this cluster.

        Inputs Availability
           Stoppage of supply of duck feathers from Bangladesh may result in input
            constraint affecting functioning of the units.

        Innovation Capabilities
           In absence of induction of innovative business tools the industry may suffer.

        Human Resource / Skill
           Poor skill-base non-compatible to handling modern advanced machinery may
            discourage installation of such machinery.

        Business Environment
           Changing global scenario and business strategies may pose uncertainty to
            the old units.




                                                                    49
                                                                                            Diagnostic Stu




CHAPTER – V

CLUSTER VISION
5.1   VISION OF THE CLUSTER

      THE VISION OF THE BADMINTON SHUTTLECOCK CLUSTER AT ULUBERIA
      IS TO ACHIEVE AN INCREASE OF 40% IN TURNOVER LEVEL, ENHANCE
      AVERAGE PROFIT BY 30% AND TO EMERGE AS A PROMINENT PLAYER
      IN THE DOMESTIC MARKET WITH AN EYE ON GROWTH IN EXPORT
      MARKET.

5.2   LONG TERM OBJECTIVES

      The long term objectives of the cluster has been perceived as follows :

         Increasing turnover of the cluster from the present level of Rs.15 Crore to Rs.
          21 Crore by 2010.
         Enhancement of average profit margin from Rs.3.50 to Rs.4.50 per piece of
          shuttlecock (Rs.35 to Rs.45 per roll containing 10 shuttlecocks).
         Increasing the average per capita monthly income from the present level of
          Rs.1500 to Rs.2000.
         Generation of additional employment of the order of 100.
         Creating a growth motivated healthy environment in the cluster.

5.3   STRATEGY OF THE CLUSTER

         Streamlining the supply of raw materials, particularly duck feathers, to make
          an end to the suffering of the cluster from its artificial scarcity and non-
          standard quality.
         Increasing productivity of the units through improvement of human skill and
          adoption of mechanization.



                                                                 50
                                                                                            Diagnostic Stu

         Improvement of product quality through adoption of certification from Bureau
          of Indian Standards (BIS).
         Development of capabilities of domestic & export marketing.
         Creation of Common Facilities Centre (CFC) for Raw Material Bank.
          .




5.4                                            FUTURE CLUSTER MAP
                                                   Business Development Service Providers
               Raw Materials      Banks & FIs         Transporters          Export Promotion Counci
                  Bank

              Forward Linkage
                                               SHUTTLECOCK MANUFACTURING UNITS
               EXPORTERS                     (Total annual turnover approx. Rs. 21 Crores)
                                                        ULUBERIA BADMINTON
                                                      SHUTTLECOCK ASSOCIATION
                TRADE FAIRS
               & EXHIBITIONS
                                                                LARGE UNITS (20)
               DEALERS IN
              OTHER STATES
                                                               MEDIUM UNITS (80)
                   SPORTS
                  SHOPS AT
                  KOLKATA
                                                                SMALL UNITS (100)

                   LOCAL
                  BUYERS


                                                        Support Service Institutions
               Panchayat                                       51
                Samities         DIC,                                                     Dte. of A
                                                NABARD              SIDBI       SISI
                & BDOs          Howrah                                                   Husbandry
                                                                                          Diagnostic Stu




                                                                       CHAPTER – VI

                                   STRATEGIC ACTION PLAN AND BUDGET ESTIMATE
6.1     STRATEGIC ACTION PLAN
        The strategic action plan for the development of the cluster has been made on
        the basis of thorough study of the cluster, the findings of which have been
        recorded in the preceding chapters. The proposed action plan is based on the
        following five major initiatives:

        -   Trust Building
        -   Capacity Building
        -   Marketing Development
        -   Technology Upgradation
        -   Creation of Common Facility Centre (CFC)

6.2     ACTION PLAN
        The year-wise action plan as conceived is given here below.

6.2.1   Action Plan for First Year (FY : 2007-08)
            Formation of cluster development core committee and development of
             Association
            Networking among the cluster stakeholders
            Enhancement of the mutual trust among major stakeholders of the cluster
            Organising awareness programme on SICDP and the joint action for the
             development of the cluster
            Planning for exposure visit to Jalandhar Sports Goods Cluster and Coir &
             Rubber Cluster at Aleppy
            Publication of common brochure and launching the common website for the
             cluster
            Capacity building activities on skill development training for the cluster
             workers
            Organising training on export procedures and documentation
            Study on scope for setting up of Training & Development Centre-cum-Raw
             Materials Bank under CFC


                                                                 52
                                                                                  Diagnostic Stu

   Organising programme on marketing strategy
   Organising         EDP/managerial         training  for     the     cluster
    entrepreneurs/managers
   Participation in trade fair (IIFT, Kolkata)
   Developing BDS linkages for the cluster enterprises
   Counselling and guidance to the cluster enterprises and providing escort
    services time to time




                                                        53
                                                                                            Diagnostic Stu


6.2.2   Action Plan for Second Year (FY : 2008-09)
            Updatation of Diagnostic Study and validation
            Networking among the cluster stakeholders
            Enhancement of the mutual trust among major stakeholders of the cluster
            Organising awareness programme on SICDP and the joint action for the
             development of the cluster
            Planning for exposure visit to Meerut Sports Goods Cluster at Uttar
             Pradesh
            Republication of common brochure and updating the common website of
             the cluster
            Capacity building activities on skill development training for the cluster
             workers
            Market survey on the prospects of cluster product
            Organising training on export procedures & documentation including export
             promotion
            Organising awareness programme on common branding
            Steps for setting up of Training & Development Centre-cum-Raw Materials
             Bank under CFC
            Strengthening marketing network by implementing the market development
             strategies
            Organising     EDP/managerial          training       for   the      cluster
             entrepreneurs/managers
            Developing BDS linkages for the cluster enterprises
            Counselling and guidance to the cluster enterprises and providing escort
             services time to time

6.2.3   Action Plan for Third Year (FY : 2009-10)

            Networking among the cluster stakeholders
            Enhancement of the mutual trust among major stakeholders of the cluster
            Planning for international exposure visit to China Sports Goods Cluster
            Republication of common brochure and updating the common website of
             the cluster
            Capacity building activities on skill development training for the cluster
             workers



                                                                   54
                                                                                          Diagnostic Stu

          Organising training on export promotion
          Strengthening marketing network by implementing the market development
           strategies
          Organising     EDP/managerial          training     for     the      cluster
           entrepreneurs/managers
          Developing BDS for marketing linkages with the cluster enterprises
          Organising awareness programme on health and safety measures
           including pollution control measures
          Impact assessment of SICDP on Shuttlecock Cluster in terms of
           improvement in production, sales turnover, profit margin, employment,
           income generation, value chain, cost-competitiveness, etc.
          Counselling and guidance to the cluster enterprises and providing escort
           services time to time
          Capacity building network for self-management phase of the cluster units


6.3   DEVELOPMENTAL PROGRAMME & BUDGET ESTIMATES

      The proposed action plan will be implemented over a period of three years
      commencing from the year 2007-08 till 2009-10. Accordingly, the schedule of
      implementation has been drawn up with larger emphasis on trust and capacity
      building during the 1st year (2007-08) and subsequently attaching emphasis on
      marketing development and technological upgradation during the 2nd and 3rd
      year (2008-09 & 2009-10). Exposure visits to benchmark cluster in the country
      and also to other developed clusters in the country and abroad have been
      included in the programme schedule.

      The activity schedule along with estimated fund requirement for development of
      the shuttlecock cluster at Uluberia (Dist. Howrah) is presented hereinafter. Also
      the coordination expenditure of implementing agency has been separately
      estimated and presented.

6.4   FUNDING PATTERN




                                                               55
                                                                                           Diagnostic Stu




6.5   PROPOSED BUDGET FOR PROJECT                                       (Rs.      in
      Thousand)

      Budget
                                                       Year   Year     Year
       Line                                                                    Total
       (BL)
               Item                                     1      2        3

        A.     Developmental Expenditure
        1.     Diagnostic study, contained in the
                                                          -        -      -            -
               cluster dev. proposal
        2.     Services of International Experts, if
               any (1 person for 1 week @                 -        -    300      300
               Rs.50,000 per day)
        3.     Organizing      training   programs/
               seminars/workshops/lectures/
               study tours to other clusters/
               demonstration        of  technology/
               equipment, including expert fees,
               travel, lodging/boarding, etc.
        4.     Association/SHG/NGO/Network
               Capacity Building (exposure visit,
               benchmarking,               brochure
               preparation, web site launching,
               initial recruitment cost, training of
               executives, hand-holding support
               on declining basis, etc.                1100   1450     2300     4850
        5.     Services of external consultants, if
               any,
        6.     Participation in foreign fairs (for
               entrepreneurs in the directly
               assisted cluster)
        7.     Misc. Developmental Costs (trans-
               lations, publications on lump sum,
               year-wise)
        8.     Technical Equipment (in terms of
               demonstration machinery, tools for
               testing – lump sum, year-wise)
                                   Sub-Total (A) :     1100   1450     2600     5150



                                                              56
     Diagnostic Stu




57
                                                                                           Diagnostic Stu

                                                                       (Rs. in Thousand)

 Budget
                          Item                       Year 1   Year 2    Year 3    Total
Line (BL)
                                             C/f..    1100     1450       2600     5150
            Coordination Expenditure of
   B.
             Implementing Agency (IA)
   9.       In-house Institutional Staff :
            Cluster Development Executive
            (12 months)/Technical Advisors
   10.      (6 months) / Support Staff (12            1050     1050       1050     3150
            months)        each         @
            Rs.35000/month
            Local travel (Rented Car, etc.)
            in the cluster of the in-house
   11.                                                 120      120        120      360
            staff   (150 days for @ Rs.
            800/day)
            Telecommunication (computer,
   12.      telephone,      fax)     @                  30       30         30       90
            Rs.2500/month
            Local Purchase (1 computer, 1
   13.                                                 110       60         30      200
            No. telephone, 1 No. fax) - L.S.
   14.      Institutional Overhead Cost (LS)           180      180        180      540
            Miscellaneous including Printing
   15.                                                  60       60         60      180
            & Stationery (L.S. year-wise)
                              Sub-Total (B) :         1550     1500       1470     4520


                  Year-wise Total (A + B) :           2650     2950       4070     9670




                                                                58
                                                                                                            Diagnostic Stu




6.6   PROPOSED MEANS OF FINANCE                                                       (Rs.         in
      Thousand)
                                                               Budgetary Contributions
       Budget
                                Activity                  Central        State       Stake-
      Line (BL)                                                                                   Total
                                                           Govt.         Govt.       holders
         A.       Developmental Expenditure
         1.       Diagnostic study, contained in the
                                                                -                -            -         -
                  cluster dev. proposal
         2.       Services of International Experts, if
                                                             210             40              50     300
                  any
         3.       Organizing      training   programs/
                  seminars/workshops/lectures/
                  study tours to other clusters/
                  demonstration        of  technology/
                  equipment, including expert fees,
                  travel, lodging/boarding, etc
         4.       Association/SHG/NGO/Network
                  Capacity Building (exposure visit,
                  benchmarking, brochure prepara-
                  tion, web site launching, initial
                  recruitment cost, training of exe-        3480            575          795      5150
                  cutives, hand-holding support on
                  declining basis, etc.
         5.       Services of external consultants, if
                  any,
         6.       Participation in foreign fairs (for
                  entrepreneurs in the directly
                  assisted cluster)
         7.       Misc. Developmental Costs
         8.       Technical Equipment
                                      Sub-Total (A) :       3690            615          845      5150




                                                                    59
                                                                                                           Diagnostic Stu



                                                                   Budgetary Contributions
       Budget
                                   Activity                   Central        State       Stake-
      Line (BL)                                                                                    Total
                                                               Govt.         Govt.       holders
                                                      B/f :     3690            615          845    5150
         B.         Coordination   Expenditure          of
                    Implementing Agency (IA)
         9.         In-house Institutional Staff :
         10.        Cluster Development Executive/
                                                                2520            600           30    3150
                    Technical Advisor/Support Staff
         11.        Local travel in the cluster of the in-
                                                                 280             30           50     360
                    house staff
         12.        Telecommunication           (computer,
                                                                  70                 -        20      90
                    telephone, fax)
         13.        Local Purchases (computer, tele-
                                                                 160                 -        40     200
                    phone, fax)
         14.        Institutional Overhead costs                 430             10          100     540
         15.        Miscellaneous including Printing &
                                                                 140             10           30     180
                    Stationery
                                           Sub-Total (B) :      3600            650          270    4520
                               Year-wise Total (A + B) :        7290          1265         1115     9670


6.7   EXPECTED PROJECT OUTCOME
      The introduction of SICDP is expected to contribute to the accelerated and
      planned development in Shuttlecock Cluster at Uluberia in Howrah District. The
      quantitative benefits are expected as under :-

Quantitative Benefits
          Sl. No.                Area                             Outputs
               1.     Exports (Direct & Indirect)    Rs. 5 Crore by the end of 2010
               2.     Domestic Sales Turnover        Rs. 21 Crore by the end of 2010
               3.     Additional Employment
                      a)     Direct                  100 persons by the end of 2010
                      b)     Indirect                400 persons by the end of 2010
               4.     Skill Upgradation              80% of total workers will possess
                                                     advance skill by the end of 2010
               5.     Additional Investments         More or less Rs. 1 Crore
               6.     Incremental Profit             25% on an average per annum


                                                                        60
                                                                                                 Diagnostic Stu




6.8        PROJECT HANDING OVER & EXIT

           CDE shall develop suitable systems to ensure the sustainability of operations
           before exit from the Cluster.

6.9        SELF-MANAGEMENT PHASE
           At the end of SICDP, the IA shall develop major business development services
           & networking group, which can play the role of IA and run the cluster activities in
           a self-sustained manner over a period of time.




                                                                              ANNEXURE : I

                          LIST OF STAKEHOLDERS INTERVIEWED

 Sl. No.                                   Name and Address of the Units
PRINCIPAL FIRMS
  1. (L)        Shri Chandradeb Galui, M/s. Angel Sports Maker,
                P.O. & Vill. – Jadurberia, P.S. Uluberia, Howrah – 711316.
      2.        Shri Supravat Niyogi, M/s. S. Niyogi & Co.,
                Vill. – Jadurberia, P.O. & P.S. Uluberia, Howrah – 711316
      3.        Shri N. Maity, M/s. N. Maity & Co.,
                P.O. & Vill. Jadurberia, P.S. Uluberia, Howrah – 711316.
      4.        Shri Basudev Khan, Khas Shuttlecock Maker, Vill. Rajapur,
                P.O. Karatberia, P.S. Uluberia, Howrah – 711316.



                                                                      61
                                                                                  Diagnostic Stu


5. (M)   Shri Bhaju Mondal, M/s. Mondal Shuttlecock,
         Vill. – Rajapur, P.O. Karatberia, P.S. Uluberia, Howrah – 711316.
  6.     Shri Sanatan Roy, M/s. S. Roy & Co.,
         Vill. & P.O. – Baniban, P.S. Uluberia, Howrah – 711 316.
  7.     Shri Arun Maity, M/s. Maity Sports & Brothers,
         Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
  8.     Shri S. K. Sasmal, M/s. Sasmal Sports Industries,
         P.O. & Vill. – Baniban, P.S. Uluberia, Howrah – 711 316.
  9.     Shri Bablu Adhikary, M/s. B.C. Adhikary & Co.
         Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 10.     Shri Shyam Sundar Adhikary, M/s. Tanmoy Sports Industries,
         Vill. – Bahirtafa, P.O. – Uluberia, Howrah – 711316.
 11.     Sk. Noor Hossain, M/s. N. Hossain & Co.,
         Vill. – Uttar Pirpur, P.O. Baniban, P.S. Uluberia, Howrah – 711 316.
 12.     Shri Rabi Naskar, M/s. Naskar Sports Industries,
         Vill, - Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 13.     Shri Tapan Patra, M/s. T.K. Patra & Co.,
         Vill. & P.O. – Brindabanpur, P.S. Uluberia, Howrah – 711 316.
 14.     Shri Dilip Majhi, M/s. D.M. & Co.,
         Vill. & P.O. – Brindabanpur, P.S. Uluberia, Howrah – 711 316.




                                                               62
                                                                                        Diagnostic Stu

                                        -2-
                                                                Annexure – I (Contd.)

Sl. No.                            Name and Address of the Units
 15.      Shri Bharat Pandit, M/s. G.B. & Co.,
          Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 16.      Shri Biswajit Mondal, M/s. Mondal Shuttlecock Mark,
          Vill. – Rajapur, P.O. – Karatberia, P.S. Uluberia, Howrah – 711 316.
 17.      Shri Ashok Maity, M/s. A.K. Maity & Co.,
          Vill. & P.O. – Brindabanpur, P.S. Uluberia, Howrah – 711 316.
 18.      Shri Tanmoy Adhikary, M/s. S.S. Adhikary & Co.,
          Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 19.      Shri Hemanta Bhakta, M/s. Hamanta Bhakta & Co.,
          Vill & P.O. – Brindabanpur, P.S. Uluberia, Howrah – 711 316.
 20.      Shri Bablu Dalui, M/s. B. Dalui & Co.,
          Vill. & P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 21.      Shri Abhoy Majhi, M/s. A. Majhi & Co.,
          Vill. & P.O. – Brindabanpur, P.S. Uluberia, Howrah – 711 316.
 22.      Shri Ajit Jana, M/s. A. Jana & Co.,
          Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
23. (S)   Shri Binod Behari Mondal, M/s. New Night Angel,
          Vill. – Rajapur, P.O. Karatberia, P.S. Uluberia, Howrah – 711 316.
 24.      Shri Gorachand Ghorui, M/s. Ghorui Enterprise,
          Vill. – Rajapur, P.O. – Karatberia, P.S. Uluberia, Howrah – 711 316.
 25.      Shri Susanta Mondal, M/s. Hindusthan Sports Industries,
          Vill. – Uttar Pirpur, P.O. – Baniban, P.S. Uluberia, Howrah – 711316.
 26.      Shri Madhu Patra, M/s. Patra Sport Industries,
          Vill. & P.O. – Baniban, P.S. Uluberia, Howrah – 711 316.
 27.      Shri Biswanath Patra, M/s. B.N. Patra & Co.,
          Vill. & P.O. – Baniban, P.S. Uluberia, Howrah – 711 316.
 28.      Shri Biswajit Ghora, M/s. Pioneer Sports Maker,
          Vill. – Uttar Pirpur, P.O. – Baniban, P.S. Uluberia, Howrah – 711316.
 29.      Shri Shibu Prasad Das, M/s. Das Shuttlecock,
          Vill. & P.O. – Banitabla, P.S. Uluberia, Howrah – 711 316.
 30.      Shri Nade Mullick, M/s. Golden Friss,
          Vill. – Rajapur, P.O. – Karatberia, P.S. Uluberia, Howrah – 711 316.




                                                               63
                                                                                           Diagnostic Stu

                                          -3-
                                                                   Annexure – I (Contd.)

Sl.No.                              Name and Address of the Units
 31.     Shri Gautam Biswas, M/s. G. Biswas & Co.,
         Vill. – Rajapur, P.O. Karatberia, P.S. Uluberia, Howrah – 711 316.
 32.     Shri Prasanta Bhakta, M/s. P.K. & Co. Manufacture
         Vill. & P.O. – Brindabanpur, P.S. Uluberia, Howrah – 711 316.
 33.     Shri Kalyan Manna, M/s. Kalyan Sports Industries,
         Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 34.     Shri Mithun Giri, M/s. M. Giri & Co.,
         Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 35.     Shri Dilip Niyogi, M/s. Niyogi Sports,
         Vill. & P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 36.     Shri Pradip Dalui, M/s. P. Dalui & Co.,
         Vill. & P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 37.     Shri Amiya Manna, M/s. A. Manna & Co.,
         Vill. & P.O. – Brindabanpur, P.S. Uluberia, Howrah – 711 316.
 38.     Shri Swapan Jana, M/s. S. Jana & Co.,
         Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
ASSOCIATION
 39.     Uluberia Badminton Shuttlecock Manufacturers Association
         Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
RAW MATERIALS SUPPLIERS
 40.     Shri Nirmal Jana, M/s. Loknath Paper Tube,
         Vill. – Bahirtafa, P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
 41.     Shri Surendranath Mondal, M/s. S.N. Mondal & Co.,
         Vill. – Uttar Pirpur, P.O. – Baniban, P.S. Uluberia, Howrah – 711 316.
 42.     Shri Ajit Das, Vill. – Baniban, P.O. Banitabla, P.S. Uluberia,
         Howrah – 711 316.
 43.     Shri Ramendranath Khan, M/s. S.S. Traders,
         Vill. – Tantiberia, P.O. Khusberia, P.S. Uluberia, Howrah – 711 316.
 44.     Shri Sushil Mondal, M/s. S. Mondal & Co.,
         Vill. – Uttar Pirpur, P.O. – Baniban, P.S. Uluberia, Howrah – 711 316.




                                                                  64
                                                                                      Diagnostic Stu

                                      -4-
                                                              Annexure – I (Contd.)

BANKERS
 45.   Howrah Gramin Bank, Baniban Hattala Branch, Vill. – Uttar Pirpur,
       P.O. – Baniban, P.S. Uluberia, Howrah – 711 316.
 46.   State Bank of India, Jadurberia, Banitabla, Uluberia, Howrah
 47.   UCO Bank, Jadurberia, Banitabla, Uluberia, Howrah
MACHINERY SUPPLIER
 48.   Shri Prafulla Chandra Dhara, M/s. Raju Engineering Works,
       Vill. & P.O. – Jadurberia, P.S. Uluberia, Howrah – 711 316.
LOCAL BUYER
 49.   Sk. Inamur Rahaman, M/s. Samiran Sports Industries,
       Banitabla, Uluberia, Howrah – 711 316.




                                                             65

				
DOCUMENT INFO