Cluster Competitiveness, Growth and Technology

Background

Cluster Development is one of the important activities of EDII and the Institute is engaged in Training and Capacity Building, Implementing Cluster development Programme, providing Technical services to other organisations and policy advocacy for the last 18 years. In order to bolster MSME Cluster Development initiatives, the Institute has set up International Centre for Cluster Competitiveness Growth and Technology (IC3GT) with the support of the Office of Development Commissioner (MSME), Ministry of MSME, and Government of India. The Centre was later rechristened as Centre for Cluster Competitiveness Growth and Technology (C3GT).
 


Centre co-ordinator

Sanjay Pal sanjaypal@ediindia.org



Strategy

The following Strategies will be adopted by the Centre;

  • The Centre will continue working on the issues of collective efficiency and improved competitiveness;
  • Set benchmarks and replicate ‘best practices’;
  • Focus on policy advocacy in the capacity of PMC;
  • Pay attention to training & capacity building of organisations and individuals;
  • Identify new areas of intervention depending on the changing business environment and need of the MSME clusters;
  • Promote R&D, innovation, technology up-gradation and patents;
  • Promote inclusive development approach and socially responsible clusters;
  • Pay special attention to research and documentation
     

Core Activities

Project Management Consultant

In the Capacity of PMC the Institute is working as a Think Tank in couple of states in the country. The Institute is engaged in developing strategy for developing MSME clusters, preparing roadmap for cluster development. In the process it is spearheading cluster development initiatives in couple of states in the country.

National Resource Agency

In the capacity of National Resource Agency, the Institute has worked with the Ministry of MSME, Ministry of Textile, Government of India and contributed in developing MSME cluster development schemes of the Ministry. The Institute is also engaged in providing technical, monitoring and evaluation (M&E) support to other cluster development organisations.

CDP Implementation

EDII is also actively engaged in implementing Cluster Development Programme in more than 20 states in the country. Some of the clusters which were targeted for CDP implementation are engineering,  auto components, leather, dyes and chemical, bearing, readymade garments, food processing, jewelry, handicrafts, handloom, coir etc.

Training and Capacity Building

The Institute is engaged in conducting cluster development executive (CDE) programme for the last 15 years. More than 700 people have been trained under the CDE programme. Since last 5 years, the Institute started offering CDE programme for overseas participants and till now 150 persons from 70 countries were trained at EDII.

BMO Capacity Building

The Institute has started conducting BMO Capacity Building programme with the objective of improving their functional and management efficiency. Alike their counterpart in the West, majority of BMOs operating in developing countries lack management and functional efficiency. Their activity portfolio is limited and members do not perceive great benefits by virtue of their BMO membership. Thus EDII got engaged in conducting training and capacity building programme, followed by handholding support to the BMOs representing MSME sector.  

BDS Project

Lack of availability, accessibility, quality of Business Development Services (BDS) is constraining growth of MSME clusters. Many existing problems of the MSMEs are not getting solved due to non-availability of ‘quality’ BDS. Thus the Institute took up BDS Market Development Project in four select MSME clusters in three States. The basic objectives of this project was do develop the BDS market through demand and supply side intervention so that MSMEs can obtain quality services from private and public service providers. Utilisation of BDS not only solved existing problems of the MSMEs but also enabled them to take their businesses to the growth trajectory.  

Lean Manufacturing

Lean manufacturing has the potential to contribute significantly in improving productivity of enterprises. Improved material handling system, work flow management, productivity improvement etc, can yield dividend in the short, medium and long run. Keeping this in mind, Institute started taking up Lean Manufacturing projects in selected MSME clusters in the country.

Promoting Energy Efficiency & OHS Measures

Energy efficiency is a new dimension in the domain of cluster development activities. Energy efficiency measures are taken up in MSME clusters in 5 States. Commencing with energy audit it delves on training of workers, supervisors and managers on reducing energy consumption, implementation of energy saving practices, changing design of furnace, controlling air flow etc. and subsequent documentation. As a result of these interventions, significant progress has been made in MSME clusters in terms of saving energy and reducing carbon emission.

CFC

Common Facility Centre has remained center stage of cluster development activities. Considering the fact that affordability to procure costly machines at times impede prospect of technology upgradation of MSMEs operating in clusters, common facility centres (CFC) are established in selected clusters. This enabled the cluster enterprises in accessing right technology/machinery/ dye house which in turn improved productivity of the MSMEs.

Mega Project

The Institute took up Mega Cluster development projects wherein an integrated approach has been adopted to address soft and hard intervention issues. A comprehensive cluster development plan is prepared and implemented for addressing all the pressure points of the cluster and necessary CFC is established so as to address critical infrastructure bottlenecks.
 

Programmes and Activities 2017-18

Sr. No. Activity Location Duration Target Group Objectives & Outcome
4.1.1 Cluster Development appointed by the Govt. of Bihar as PMC Bihar 1 Year MSMEs in Bihar Holistic development and productivity improvement of the MSMEs operating in the cluster.
4.1.2 Cluster Development appointed by the Govt. of WB as PMC W.B. 1 Year MSMEs in WB Holistic development and productivity improvement of the MSMEs operating in the cluster.
4.1.3 Cluster Development appointed by the Govt. of Tripura as PMC Tripura 1 Year MSMEs in Tripura Holistic development and productivity improvement of the MSMEs operating in the cluster.
4.1.4 PMC for Integrated Cluster Development in the State MP 3 Years MSMEs in Madhya Pradesh Holistic development and productivity improvement of the MSMEs operating in the cluster.
Sr. No. Activity Location Duration Target Group Objectives & Outcome
4.2.1 Cluster Development under MSE-CDP W.B, Tripura, Jharkhand 18 Months MSMEs in the Cluster Improving competitiveness of MSMEs
4.2.2 Pottery Cluster Development Program Gorakhpur 4 Years Artisans All round development of pottery cluster actors.
4.2.3 3 SFURTI Clusters MP/Rajasthan/Chattisgarh/UP 3 Years Rural artisans Technical Agency for implementation 
4.2.4 4 SFURTI Clusters MP/Rajasthan/Chattisgarh/UP 3 Years Rural artisans Technical Agency for implementation 
4.2.5 SFURTI KVIC Kerala Continuous Traditional Artisans Establishment of CFC in the project locations, thereby enhancing productivity of artisans.
4.2.6 Jewellery Cluster Development  Gorakhpur 4 Years Artisans Holistic development of Cluster
4.2.7 Pottery Cluster Development  Kushinagar 5 Years Artisans Holistic development of Cluster
4.2.8 Cluster Development Programme under State Cluster Development Programme: Leather Cluster Dheeroda 3 Years Artisans of Leather Cluster Holistic development of the clusters.
4.2.9 SFURTI Coir Trivandrum & Haripad, Balussery, Banaskantha 48 Days Coir Artisans Establishment of CFC in the project locations, thereby enhancing productivity of artisans.
4.2.10 Cluster Development Initiative with Directorate of Industries, Govt. of Odisha as an Empanelled Consultant (EC) Angul, Puri, Bhubaneswar  (Odisha) 3 Years MSMEs and SHGs Holistic development of MSME clusters.
4.2.11 Wooden Toys & Jewellery Cluster Development Program  Varanasi 5 Years Jewellery Artisans/Cluster Actors All-round development of wooden toys and jewellery cluster actors.
4.2.12 Handloom Cluster Dev. Program Azamgarh 5 Years Weavers Holistic development of Cluster
4.2.13 Tourism Sector Development Odisha 3 Years Handicrafts and SHGs Holistic development of tourism clusters. 
Sr. No. Activity Location Duration Target Group Objectives & Outcome
4.3.1 Promoting Energy Effeciency & OHS Measures in Clusters under Climate Change Initiative Gujarat, MP, Karnataka, WB, Maharashtra & Others 1 Year Cluster MSMEs, their workers & society at large Making cluster MSMEs energy efficient and OHS compliant
4.3.2 BDS Market Development as CIT Tripura, Rajkot 32 Months MSMEs & BDSPs in the Cluster Enhancement of BDSP-MSME linkages 
4.3.3 Skill Mapping in Rural Clusters NER, ER 3 Years Unemployed Youth in Rural Clusters Identification of skill gap and action plan
4.3.4 Diagnostic Study of 3 clusters in Gujarat Gujarat 1 Year SMEs in the state of Gujarat Identification of technical gaps and action plan for development
Sr. No. Activity Location Duration Target Group Objectives & Outcome
4.4.1 Cluster Development Executives Training Programme under ITEC EDII Campus 6 Weeks Cluster Development Practitioners Capacity Building of CDEs.
Sr. No. Activity Location Duration Target Group Objectives & Outcome
4.5.1 Lean Manufacturing Programme Gujarat, West Bengal 18 Months MSME Units Enhancing effectiviness of entrepreneurs. Focus on productivity and quality improvement in cluster units.
4.5.2 Lean Manufacturing Consultancy Odisha 18 Months Clusters To implement lean tools in MSMEs.
Sr. No. Activity Location Duration Target Group Objectives & Outcome
4.6.1 MSME Cluster Kerala 1 Year MSMEs Comprehensive development of the cluster in terms of soft and hard skills.
Sr. No. Activity Location Duration Target Group Objectives & Outcome
4.7.1 Research & Publication on Cluster, BDS & Value Chain EDII 1 Year Policy makers Knowledge generation
4.7.2 Minor Research Project on EP for Orthopaedic Implant  Gujarat 1.5 Years MSMEs in the Cluster Technology development for the cluster

Research and Publications:

  • “Study on Market & Value Chain Mapping” in Vietnam, Cambodia, Thailand and Myanmar (2016).
  • “Innovation, Collaboration and Learning in Regional Clusters: A Study of MSMEs in India”; published in the Research Bulletin, The Institute of Cost Accountants of India, Vol 41, No. IV, Jan 2016
  • “Benchmarking Indian SMEs: A DEA Approach” Accepted for publication in International Journal of Process Management and Benchmarking-An Inerscience Publication (2015)
  • “Internationalization of Kolkata Leather Cluster: A Case Study”, chapter in the edited book of “International Conference on Transnational Entrepreneurs and International SMEs in Emerging Economies: Drivers and Strategies. Edited by Wasdani, K.P, Vijaygopal, A., and Manimala, M.J., Bonfringe Publications, Coimbatore (ISBN: 973-93-84743-81-9) (2015)
  • “Performance modelling of Indian SMEs: A DEA approach” chapter in the edited book of “Eleven Biennial Conference on Entrepreneurship” edited by Mishra, S., Awasthi, & Batthini, G., Bookswell Publisher, New Delhi (ISBN: 978-93-80574-78-3) (2015)
  • “Measuring brand equity of healthcare industry: A customer based perspective”, Proceedings of 1st International Conference on “Globalizing Brand India: Opportunities and Challenges” conducted by IIM, Kashipur (2015)
  • Article on ‘Empowering MSMEs through Cluster Development Programme’ published in The Management Accountant, May 2013 issue
  • Paper on “Open Innovation Benefiting Micro, Small & Medium Enterprises-A Case of the Leather Cluster in Kolkata”; published by Bookwell Publishers, New Delhi
  • Article on “Small Producers and Labour Conditions in Auto-parts and Component Industry in North India”; published in ‘Labour in Global Production Networks in India’; ed. by Anne Posthuma and Dev Nathan, Oxford University Press, 2010.
  • Article on “Market for Business Development Services in India: A Study of Calcutta”. The research was sponsored by DFID; published in The Journal of Entrepreneurship; July-December 2000 (Vol 11 No.2).
  • Article on 'Producers and Markets in Rural Bihar: A Case of Tribal Handicrafts'; published in The Journal of Entrepreneurship, January-June 1999 (Vol.8, No.1)
  • Article on “Stunning Turnaround in Jamnagar Brass Parts Manufacturing”; published in the magazine of the Engineering Export Promotion Council (Vol I, Issue 2, April 2008).
  • Article on “Forging growth with competitiveness”; published in the magazine of the Engineering Export Promotion Council (Vol II, Issue 1, Nov. 2007).
  • Case Study on ‘Jamnagar Brass Parts’ published in the volume titled “Working Together Works-Cluster Case Studies”; by the Foundation for MSME Clusters, New Delhi (2006); published by the Foundation for MSME Clusters, New Delhi (2006).
  • Case Study titled ‘Rajkot Engineering’ published in the volume titled “Working Together Works-Cluster Case Studies”; by Foundation for MSME Clusters, New Delhi (2006).
  • Training Manuals for the Entrepreneurs and Trainers as part of the “Enterprise Up-gradation Programme” in the Brass Metal Handicrafts Cluster at Moradabad, UP; supported by International Labour Organization (ILO). (2001)
  • Training Manual for Cluster Development Executives
  • Training Manual for ‘Capacity Building of Business Membership Organisations (BMOs)’
  • ‘Capacity Building and Training Need Assessment on SME cluster and BDS market development’
  • Published Case Study titled “Adding value to the Global BDS Network Linkages of the Kolkata Leather Cluster: A Case Study”
  • Module on Marketing Management as part of the Manual on Micro Enterprise Development for the Junior Entrepreneurs of Bahrain supported by the Ministry of Social Development, the Kingdom of Bahrain.
     

Policy Advocacy and Advisory Services

  • Resource persons of the Institute was consulted by the Office of the Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises, Government of India while developing Micro and Small Enterprises- Cluster Development Programme (MSE-CDP) scheme.
  • The Institute played an important role in developing Scheme of Fund for Regeneration of Traditional Industries (SFURTI) of KVIC & Coir Board and Integrated Handloom Development Scheme of the Ministry of Textiles, Government of India.
  • The Institute was consulted for developing Cluster Development Policy (GR) of the Government of Gujarat.
  • The Institute is working as a Project Management Consultant (PMC) and Empanelled Agency with the Directorate of Industries, Government of West Bengal and Government of Orrisa respectively. In this capacity the institute is working as a think tank and promoting MSME Cluster Development in the states.
     

Accomplishments

  • Conceptualized Cluster Development Model to revitalize units working in an agglomerate
  • Created a cadre of Cluster Development Executives (CDEs) to nurture cluster initiatives
  • Introduced new technologies in several industrial clusters in the country
  • Developed patents for transferring technologies to industries
  • As Cluster Management & Technical Agency (CMTA) ensuring marketing, design & technical innovations as also consortium formation

Future plans

  • MSME Cluster Development
  • Development of Business Development Services Market in MSME clusters
  • Capacity Building of Business Membership Organisations
  • Promoting Energy Efficiency and Occupational Health and Safety Measures in MSME Clusters
  • Export Consortia and Export Development
  • Cluster Twining
  • Lean Manufacturing
  • Tourism Cluster Development
     
Image

Sanjay Pal

 
Area Of Apecification : Rural Marketing

Entrepreneurship Development Institute of India

(Via Ahmedabad Airport & Indira Bridge), P.O. Bhat 382 428, Dist. Gandhinagar, Gujarat, India.

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