Clusterkraft e-Newsletter (Vol.16)

NATIONAL NEWS

SIDBI doubles its focus on cluster based initiatives

Small Industries Development Bank of India (SIDBI) plans to focus on SME cluster based initiatives such as setting up common facility centres, extend marketing support, and look after infrastructure related requirements. It has also planned to increase fee-based services by providing forex and treasury services in SME clusters, project advisory services, and loan syndications. more

Over three lakh SSI’s established in IT Clusters

Karnataka and Bangalore, establish over three lakh small scale industries (SSIs) varying from textiles to rubber. The industrial sector’s performance is doing well in areas like auto components manufacturing, fabricators, garment and textiles, plastics, pharmaceuticals, chemicals and agri food processing. more

AP Govt urged to encourage Coir clusters

Coir board to encourage cluster development besides giving incentives and subsidies for setting up units. The industry is estimated to create as many as one lakh jobs in the state in rural areas, especially for women. The board has further decided to shift its regional office from Vishakapatnam to Rajahmundry. A training centre is also planned to be set up here. more

GI protection for Benaras Sari Cluster

Discussions were held at a national workshop to preserve and promote traditional Banarsi Sari Industry under registration of Geographical Indications under the World Trade Organisation norms, to check duplication. The workshop was jointly organized under the auspices of Textile Committee, UNCTD and Human Welfare Association in Varanasi. more

India and France govts collaborate on competitive Clusters

Foreign Ministry of France agrees to create intense cooperative arrangements between thematic clusters in the areas of Micro-electronics, Pharma- nano biotechnology and water technology. The main objectives shall be to review and further strengthen the bilateral programme of cooperation in the area of Science and Technology and create focused cooperation between newly created high-tech Competitiveness Clusters. more

INTERNATIONAL NEWS

SME clusters to compliment govt.'s efforts

In Harare’s much needed foreign exchange, SMEs shall compliment the government’s efforts to turn the economy in to a world class economy and sell their products world-wide. SMEs are also expected to reduce unemployment in the country by employing students. more

Incentives to ICT training institutions in Industrial Clusters

Board of Investments (BoI) in Manila extends incentives to institutions providing information and communications technology (ICT) training. According to 2006 Investment Priority Plan of the BoI, industry clusters such as ICT and "operations of centers of excellence" shall be granted both fiscal and non-fiscal incentives by government. more

ICT Ministry to be set by Uganda Govt.

Uganda government will soon set up a ministry of Information, Communication and Technology (ICT) to ensure effective and systematic coordination. The government is committed to an ICT-led socio-economic development strategy.
The national ICT policy in Uganda has three main areas of focus. They are information as a resource for development, mechanisms for accessing information and ICT as an industry. more

SME’s to engage in research & commercialization at the Qatar Science and Technology Park (QSTP)

Facilities worth $300m at the Qatar Science and Technology Park (QSTP) will go on stream early next year in Doha. The Park shall be internationally recognized as a research hub with focus on oil and gas, aircraft operations, environment technology, petrochemicals, healthcare, information and communication technology and water technology.

Varied economic activities shall be done with many small and medium and larger companies over the next 10 to 15 years. 5000 people are expected to be employed. more

Events

SME partnership launching ceremony

The Small and Medium Enterprises partnership program, 2006 was launched at Bandar Seri Begawan76 on 4th May, 2006. It involves a partnership between Brunei Shell Sdn Bhd, Baiduri Bank and Brunei Economic Development Board (BEDB). This program involves an SME networking series, a training program on sales and marketing, visits to departments and a one day SME business forum including an SME fair.
more

Istanbul Clustering Conference on 25- 26th May in Turkey

Three EU funded projects shall host the Istanbul Clustering Conference in Turkey from 25^th – 26^th May 2006. The topic of discussion shall be "In an era of global competition, clustering approach presents effective and efficient ways for increasing competitiveness by promoting innovation as well as cooperation.”

The objective of the conference shall be disseminate best practice and experience from across Europe and the Mediterranean partners in the role of clusters for the development of regional and local economies. more

ARTICLES

Making it big, with small steps

The backbone of the industrial estates in Pune chiefly comprises of small and medium sized enterprises (SMEs). It is a premier automotive hub, being just one of the three in the country.

The UNIDO cluster approach has led to the creation of five clusters in the Pune region. These are for electronic goods, fibre glass, food products, pharmaceuticals and bulk drugs and ready-made garments.

Garment industry here caters largely to the local market, although some of the larger units had begun to eye the overseas markets with the removal of quotas.

 Defence sector is just one of the several industries with a presence in the SME segment. Among others, there is the machine tools industry, which was once a vibrant segment.

Then there is the food processing sector that has an estimated 1,100 food processing units, employing 17,000 people, with a total turnover of Rs 500 crore.

The software companies here also fall mainly in the SME segment. A large number of the nearly 600 units here are home-grown and focused on software product development.

Related to the auto component industry is the light engineering sector, serving the needs of non-auto industries. There are a few chemical units and what is set to take off is NCL’s proposed Innovation Park & Venture Centre.

The high profile presence of automotive original equipment manufacturers (OEMs) has led to the setting up of smaller supplier units. more

IT penetration rates dismal By JANGOO DALAL

In business, one comes across certain localities that specialize in a particular trade. Referred to as clusters, these businesses are a group of companies and organisations in related industries that have economic links. This could be because they buy and sell from each other, or because they use the same skills and infrastructure in a local area.

Clusters have resulted in more organized innovation systems, be it on the local, regional or the national level. They are representatives of a growing economy and as economies expand, development and upgradation of clusters becomes an important agenda for both governments and companies alike. Such SMB clusters account for business conditions and an open economy have aided the emergence of a significant number of clusters in India.

However, India's SMBs still have a long way to go. A recent AMI survey estimates that only 21% have PCs, 20% have Internet access, and 13% have local area networks. Furthermore, only 16% of all Indian PC-owning small businesses have high-speed Internet access.

Having realised the business benefits behind new generation networks that offer converged data, voice and multimedia, Indian SMBs today are forging ahead in the adoption of newer networking technologies. The increase in broadband usage particularly is expected to be an important factor enhancing usage of IP-based technologies like IP PBX, IP Centrex, VoIP and even Internet access through cellular phones and handhelds. more

Owning your ideas: An essential tool for freedom By Daniel Son

The term Intellectual Property reflects the idea that this subject matter is the product of the mind or the intellect, and that IP rights may be protected by law in the same way as any other form of property. It plays a major role in the creation of businesses and prosperity because it creates a culture that fosters the freedom to tap into one’s imagination and creative potential.

There is a strong, positive correlation between the strength of property rights protection and the economic affluence of a country. As countries develop, solid groundwork for freedom will need to be laid in order to ensure sustained economic growth and prosperity.

If intellectual property rights are not respected, critical elements of a vibrant, productive economy are stripped away—creativity, imagination, innovation and the desire and ability to compete.

In this global economy, it is vital that IP is presented for what it truly is: not a Western conception, not an American ideal— but a component of property, a pillar of freedom and a necessary facet of true prosperity. more

Use the textile clusters tool well By Rajveer Singh

The story of industrialisation in the developed countries during the 19th century reflects the relationship between the rapid growth of clusters and factor endowment.

Textile clusters traditionally had their origin in the vicinity of raw material sources. Many traditional textile firms with comparative advantages in cheap raw material availability have relocated and disintegrated to form clusters with smaller firms specialising in a single process. Their competition thrives on end-products and they collaborate on technology and infrastructure maintenance.

According to UNIDO estimate, India has about 70 textile clusters comprising about 80% of textile production. Large clusters in the hosiery sector are found in Tirupur, Ludhiana and Kolkata. In the powerloom sector, major clusters are located in Burhanpur (Madhya Pradesh) and Bhiwandi (Maharahstra) and ready-made garment clusters in Delhi, Chennai and Bangalore. Silk clusters are in Bangalore and Mysore (Karnataka) and woollen clusters for shawls in Kullu (Himachal) and Amritsar (Punjab).

Cluster size in terms of number of units and quantum of output varies significantly. Some of them contribute as much as 70% to 80% of the total volume of the same product produced in different regions. Panipat produces 75% of all blankets produced in India.

The competitive environment is now poised to change the working of these clusters. New products will replace some of the existing mix, thereby affecting capacities of existing firms in the cluster.

More than 10 government institutions, especially in the textiles sector, re-crafted their strategies. Infrastructure development in the textile sector is now customised for textile clusters. more

Do you know Haryana Artisanal Clusters???

Haryana is the 16th largest state in area and population that is bounded by Uttar Pradesh in east, Punjab in west, Himachal Pradesh in north and Rajasthan in south. The state has a very fertile land and is also known as the “Green Land of India”. Handicrafts are an important part apart from agriculture that also gives impetus to Haryana’s economy. The art and crafts in the state might not have enjoyed royal benefaction unlike in other states in India but whatever little is done is well-designed and usually basic.

The above diagram shows the Sectoral classification of Artisanal Clusters in Haryana

Textile Clusters constitute 27% of the total artisanal clusters in the state. It includes handloom made articles such as bed- spreads, carpets, curtains, table mats, etc. The craft has spread, and is a vocation for people of this region. Hand- embroidery is commonly done on most of the materials made consisting of both figurative and abstract works with highly stylized-geometrical, floral, circles, dots, zig- zags, checks and bands motifs in baghs and phulkaris. The Punja durries/ block printing here are an aesthetic and a hot selling item in the international market.

Cotton floor coverings or durries made in Haryana are by far the best on account of their rich hues and hand weaves. The carpets in Panipat, Hisar and Ambala are mainly of bright basic colors made on traditional looms. Panipat is the major center where a lot of work is being done in handloom weaving producing large amounts of fabrics and furnishings.

The Surajkund Crafts is a well known annual event held from the 1st to 15th February in Haryana, highlights some of the finest handloom and handicraft traditions of the country. Some of the most deligtful crafts collections of the Mela arrive from practically all over the country.

Woodwork Clusters constitute 20% of the total artisanal clusters in Haryana. Rosewood, Shesham and Sandalwood are the most commonly used varieties of wood here. At present it mainly consists of making utility items such as furniture apart from jewellery boxes, lamps and figurines. Main centres where the craft is practiced include Biran, Gurgaon, Namak, Ferozpur, Bahadurgarh, Rohtak and Bhiwani. Inlay work and wood craving is also done in Hissar and Karnal.

Earthenware and Cane & Bamboo Clusters each constitute 11% of the total artisanal clusters in Haryana. Terracotta pottery has been called the lyric of handicrafts because of its irresistible appeal.

Earthenware objects consist of a variety of objects such as lamps, pitchers, flower vases, pots, musical instruments, clay toys, goblets, figurines, and wall panels. Haryana's ceramics tiles, vases pots have won acclaim both in India and abroad due to their impressive designs and colors.

The craft is mainly concentrated in Bahadurgarh, Hasanpur, Jhajjar, Badkhal, Ferozpur, Sonepat, Mohana, Panchkula, Palwal (Kusrukshetra) and Shahpur apart from Rewari and Karnal.

Cane and Bamboo items made mainly consist of bags, curtains, jackets, mats, purses and floor coverings. Chairs commonly known as Moorahs are made of bamboo and cane. They are a major export item and are made in many parts of Haryana. The seat is woven out of jute strings to make it more durable.

Accessories and Leather Clusters constitute 9% each of the total artisanal clusters in Haryana. The state is known for skills in traditional folk ornaments that are highly artistic and elaborate especially silver, bone and lac. The motifs have been developed in patterns such as mor- morni pattern, which occurs repeatedly. Rohtak, Bahadurgarh, Gurgaon, Pataudi, Sirsa, Karnal, Sonepat, Kurukshetra, Sohna and Ambala Cantt.are the main centres of accessory making.

Leather work in Haryana is mainly done in rural areas. The state is known for its Tilla juttis of Karnal that are sewn with ornaments such as metal embroidery and have colorful designs. Brocade embroidered jooties in from Rewari are equally known and in demand like in Rohtak. Other important centres for leather craft include Jharsa, Qutubpur, Saranwas, Bikaner, Jhajjar, Khurd, Garhi, Durgapur, Faridabad, Hissar, Hansi and Narwana.

Metalware Clusters constitute 7% of the total artisanal clusters in Haryana. Rewari, Jagadhari and Jind are known for their qualitative traditionally made brass utensils. The products are made in attractive color contrasts and texture of metals.

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