Clusterkraft e-Newsletter (Vol.20 )

NATIONAL

INTERNATIONAL

ARTICLES

Artisanal clusters of Madhya Pradesh – more information!!!

NATIONAL

Centre sees success of rural biz hubs in clusters

The government is optimistic about making rural India vibrant in entrepreneurship with its new scheme of setting up rural business hubs (RBHs). After a year of implementing this scheme, 32 MoUs have been signed between the Centre, industry bodies and local village governments (panchayats) for setting up RBHs. RBHs are the proposed industry clusters in rural areas. more

Govt. planning manufacturing investment regions

The Union Government is planning to set up five manufacturing investment regions (MIRs), on the lines of special economic zones (SEZs), but covering a larger area to give a boost to growth in the manufacturing sector. Liberalizing of foreign direct investment norms is also being considered, especially in the leather, pharmaceuticals, and engineering goods industries. more

Pune auto cluster to get its first testing centre for forging

There is a new feather in the cap for this auto and IT hub of the country. Pune is to have a first-of-its-kind Rs 22-crore research and development, testing and validation centre for the forging industry in the country. It is already host to country’s first government approved auto cluster, now the forging centre will give another boost to the auto industry, especially the small and medium enterprises — catering to the auto component industry — that will be able to test their products. more

Yes Bank tie up for financing SME clusters

Small scale industry regulator NSIC has for the first time roped in a private bank for providing easy credit to firms in the sector. Under the tie-up, national small industries corporation will recommend proposals received from SSIs to the private Yes Bank, which in turn, will increase the credit outflow to the SME/SSI customers, according to a joint statement issued by NSIC and Yes Bank. more

Plastics Cluster to set up wind power unit in Idukki district

The Aluva Plastic Cluster plans to set up a windmill farm at Ramakkalmade in Idukki district to generate electricity for captive consumption. Land for the purpose has been bought by the consortium, which has 108 units. Work on the tool room of the plastic consortium, which will also have a common facility centre, was inaugurated by Industries Minister Elamaram Karim. more

Handloom clusters may get 25% capital subsidy

The handloom sector may soon get about 25% capital subsidy. The textile ministry has formulated a Technology Upgradation Fund Scheme (TUFS) for the sector, similar to the existing package for the powerloom sector. The proposed subsidy is expected to impart momentum to the growth of the handloom sector. more

Handloom cluster scheme - a boon to weavers

The Central Government's announcement that a handloom cluster will be established in Salem under the Integrated Handloom Cluster Development Scheme has provided the much-needed fillip to the withering handloom weaving community in this textile pocket of the State.This will enable weavers here to build their capacity to meet challenges from the global market in a sustainable and self-reliant manner. more

NMCC opens Rs 1,000-cr kitty for SME clusters

A big boost to small units is on the cards. The National Manufacturing Competitiveness Council (NMCC) has prepared a Rs 1,000-crore national manufacturing competitiveness programme for small and medium enterprises. The plan, which has been jointly worked out by the commission and the ministry of small scale industry (SSI), aims to benefit over 10,000 firms in more than 500 SME clusters. more 

SEWA to help Andhra artisans tackle globalization

A major project is under way to marry the traditional skills of Andhra Pradesh's famed lace workers and handloom weavers with new marketing tools to combat the negative effects of globalisation. Partnering the government in this pilot effort is the Ahmedabad-based Self Employed Women's Association (SEWA), which has organized thousands of skilled craftswomen and helped them market their products without middlemen. more

Handloom Sector Clusters Face Stiff Competition From Powerloom Products

The Handloom Sector is facing stiff competition from cheap powerloom products due to various reasons. There is a high wage component in the cost of handloom products vis-à-vis power looms. Power looms also enjoy the advantage of superior technology and economies of scale. Handloom weaving is still largely a household enterprise and a predominantly rural activity, dispersed all over the country whereas powerlooms are better organized in terms of procurement of inputs and organization of marketing. Thus, both handloom and powerloom compete for the same market segment.

The estimated cloth production in handloom sector in the year 2005-06 was 6203 million sq.mtrs (provisional), 5722 million sq.mtrs. in 2004-05 and 5493 million sq.mtrs in 2003-04. Thus, there was an annual increase of 8.41 per cent in the year 2005-06 and 4.17 per cent in the year 2004-05.

The Government is implementing a number of schemes to enhance production, productivity and efficiency of the handloom sector and to enhance the income and socio-economic status of the weavers by upgrading their skills and providing infrastructural input and marketing support. The important developmental schemes are Deen Dayal Hathkargha Protsahan Yojana, Integrated Handloom Training Project, Marketing Promotion Programme, Mill Gate Price Scheme, Workshed-cum-Housing scheme, Weavers’ Welfare Scheme and Handloom Export Scheme, Further more, new schemes of Integrated Handloom Cluster Development (IHCD), Mahatma Gandhi Bunkar Bima Yojna and Health Insurance Scheme have been launched in the year 2005-06. more
 

INTERNATIONAL

Malaysia:  Steering Towards Progress through ICT

In the IT world, the excitement caused by the national economic roadmap dished out by the government a short three months back has again enjoyed attention at meal tables.
Announced at the end of last March, the eagerly awaited Ninth Malaysia Plan, the economic blueprint for the country to reach towards its lofty goal of being a developed nation by the year 2020, has brought much cheer among the local ICT industry which had been languishing in growth for 18 months or so. more

Help for the SMEs - Malaysia

Much of the initial impetus brought by the revelation of the 9MP has continued to bring some cheers among the multinational corporations (MNCs) in Malaysia. However, some echoed their concern about the seeming lack of assistance available to small- and medium-sized enterprises (SMEs) to upgrade and compete regionally. more

Malaysia: Govt. to Help SME involved in ICT sector

The Malaysian Government is currently working on specific fiscal policy to help small and medium industries (SMEs) involved in information and communications technology (ICT) sector, or K-SME. The policy would be financed with the allocation for ICT sector under the Ninth Malaysia Plan. The policy will cover issues such as funding, infrastructure and research and development support. more
 

ARTICLES

Tech vendors bet big on SMEs: By SANJAY SINGH

The Small and Medium Enterprises (SMEs) market is no longer the segment that needs scaled down versions of technology solutions that were built for large enterprises. Having come into its own, it is now grabbing the mind and solutions share of ICT vendors and looming large on their radar screens. No longer is it unfashionable to be small, or medium-sized. At least that is what the SMEs are discovering, as they suddenly find themselves on the radar of leading technology firms. more

Initiatives that drive growth in clusters

The small-scale industrial sector occupies a place of pride in India’s industrial economy. It contributes about 49% of the overall exports, over 40% of the manufactured output besides generating substantial employment of around 28.3 million people. The SME sector would continue to play a crucial role in our globalizing economy towards national development, under the new world trade rules. more 

Does the cluster approach make SMEs tick? By Amitabh Chakraborty

The question of whether small and medium enterprises (SME) will flourish in India is not only a matter of policy, but also depends on the reality that exists on the ground. The cluster approach that saw SMEs specialize in a particular product segment also meant the localization of these industries in specific geographical areas. Not surprisingly these areas have come to be identified with that particular trade. However, while value addition can be achieved by vertical integration, we often see geographical expansion of the cluster at the same time. more

Increasing competitiveness in cluster development by Bindi Mehta

Clusters typically include companies in the same industry or technology space that share infrastructure, supplies and distribution networks. It is interesting to note here that at times they are direct competitors, but more often work in a complementary manner. Industry and business collaboration have long been recognized as one of the strategic options for successfully negotiating today’s increasingly competitive market place. more

Economic clusters hold the power to dream big: by Malini Goyal

The Chanderi artisans have been struggling for many years. The Madhya Pradesh-based artisan units producing Chanderi silk fabric and sarees targeted the low-end of the market with poor returns. Delivery, scale of production and quality were always big problems.

Two years ago a collaboration with UNIDO - a UN body supporting economic clusters - began to help the artisans move up the value chain. Around 700 of them came together under a self-help-group. They have formed a common sourcing body to source raw material more efficiently. Moving up the value-chain, they have tied up with Rs 200-crore Fab India which buys 70% of their produce today. more

More information on artisanal clusters of Madhya Pradesh

The State of Madhaya Pradesh: Madhya Pradesh, in its present form, came into existence on November 1, 2000 following its bifurcation to create a new state of Chhattisgarh. The undivided Madhya Pradesh was founded on November 1, 1956. Madhya Pradesh as its name implies, lies in the heart of India. Madhya Pradesh is the second largest Indian state in size with an area of 308,000 sq. kms, bordering seven other states - Uttar Pradesh, Bihar, Orissa, Andhra Pradesh, Maharashtra, Gujarat and Rajasthan. Madhya Pradesh consists largely of a plateau streaked with the hill ranges of the Vindhyas and the Satpuras with the Chhattisgarh plains to the east.

Madhya Pradesh, historically known as Malwa still has many pre-Aryan Gond and Bhil tribal people in the state, but Madhya Pradesh is overwhelmingly Indo-Aryan with majority of the people speaking in Hindi and following Hinduism.

Textiles: Textiles constitute 50% of the artisanal clusters in MP. There are many flourishing textile mills in the state and artificial silk manufacturing plants located at Ujjain, Nagda, Indore and Gwalior.

Ancient texts speak of Madhya Pradesh as a famous centre of weaving between 7th century and 2nd century BC. Among the finest textures of northern India are the Maheshwari and Chanderi saris.  The Maheshwari sari is gossamer thin - a delicate blend of silk and cotton yarn - made in tiny checks or stripes with a coloured border.

The Chanderi, widely woven in Guna, is also extremely fine but has a more intricately woven border (with motifs) than the Maheshwari. Tussar silk woven by the Devangan community of Madhya Pradesh is known by its Sanskrit name kosa. Raigarh and Champa are important centres for tussar silk saris and fabrics.
The tie-and-dye (bandhani) and block-printing traditions of Rajasthan and Gujarat are followed in Mandsaur, Indore and Ujjain. The Malwa and Nimar regions are renowned for their hand block-printed cotton while the textiles of Bagh, located in the Dhar district, are world-renowned.

Batik, a resist process in which the fabric is painted with molten wax and then dyed in cold dyes, is done on a large scale in Indore and Bherongarh. Multi-coloured batik saris, dupattas and bed sheets are popular for their contrasting colour schemes.

Cane & Bamboo: Cane & bamboo constitute 15% of the total artisanal clusters.  Bamboo thickets are a common sight in the state and the tribals are experts at putting it to use. Crafting bamboo articles for daily as well as decorative use is a popular pastime of the Gond, Baiga, Korku and Basor or Basod communities. You can buy anything from agricultural implements, fishing traps, hunting tools to baskets at local weekly markets.

Paintings: Paintings constitute 14% of the artisanal clusters of Madhaya Pradesh.

The art of painting in India goes back to prehistoric times. Evidence of this is rampant in the astounding cave paintings found in Madhya Pradesh.
The Rathwa Bhils of MP and eastern Gujarat commonly install a deity in the form of a ritual wall painting within the home. Outside the sacred enclosure other paintings depict incidents from daily life, usually featuring horses.
The Bhils and Bhilala tribes of Madhya Pradesh paint myths related to creation called pithora paintings. Horses, elephants, tigers, birds, gods, men and objects of daily life are painted in bright multicoloured hues.

Another form of art, widely practiced in MP is the mandana. Auspicious diagrams are drawn on the floor with rice paste, coloured powder, flower petals or grains of rice, often with symbolic motifs set within floral and geometric patterns. Mughal miniature paintings also figure as a footnote in MP because the Persians of the court of Malwa were enthusiastic patro

Earthenware /Pottery: Earthenware clusters constitute 12% of the total artisanal clusters of MP.
The terracotta pottery of Madhya Pradesh is simply remarkable, especially that practiced by the tribals of Bastar(now part of Chattisgarh). Traditional statues of elephants, serpents, birds and horses made in different forms & parts of the sate are incomparable in their simplicity & traditional designs.

Many parts of Madhya Pradesh have a charming tradition of decorative roof top tiles, made partly by hand moulding and partly on the wheel. These tiles, shaped like half tubes, have perched on top of them figures of elephants, monkeys, bears, reptiles, gods and goddesses and are considered a status symbol among the rural people.

Woodwork: Woodwork contributes 9% to the total artisanal clusters in MP.

The art of woodcarving has flourished long in Madhya Pradesh, and the beautifully embellished wooden ceilings, doors and lintels with finely carved designs are silent testimonials to its glory. The wood carvers of Madhya Pradesh, with great sensitivity and skill transform different varieties of wood such as shisham, teak, dhudi, sal and kikar (a prickly tree that keeps its leaves all through the year and has yellow flowers and also called babul or subabul) into works of art.

The state also offers a variety of painted and lacquered woodcraft items such as toys, boxes, bedposts, cradleposts and flower vases. The major centres of this art are Gwalior, Sheopur-Kalan (Morena), Rewa and Budhni (Raisen).