CLUSTERKRAFT E-NEWSLETTER - INFORMATION BULLETIN ON CLUSTER DEVELOPMENT AND RELATED ISSUES

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Workshop on Knitwear Design & Garment Technology

Karnal Agriculture Implements Cluster

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::: IN FOCUS :::
Kashmir sets up hub to modernise cricket bat industry

Jammu and Kashmir government is setting up a cluster for manufacturing cricket bats, where manufacturers will be able to utilise common facilities, to modernise and promote the industry in the state.

The central government under the central assistance scheme sanctioned the unit and the cricket bat cluster (CBC) is being constructed in Anantnag district of the state.

Work has already started on this project and the main building for housing seasoning chambers, administrative blocks and electrical equipment like high tension and low tension networks and transformers have been almost completed.

"Under the small industries cluster development program, the government has approved a project for our state named cluster development of cricket bat. This industry has been laid down in the area where the people involved in this business have their shops," said Muzaffar Hussian, Joint Director of Industries and Commerce (development), Kashmir. more

Asian Development Bank Pledges $72m in Assistance to Nepal to Expand Microfinance to Rural Areas :-
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The Asian Development Bank (ADB) has agreed to provide Nepal with a loan of NPR 4.3 billion (USD 60.4 million equivalent) and a grant of NPR 870 million (USD 12.1 million equivalent) in an effort to increase access for credit to the rural poor and to women. The ADB Board of Directors approved the funding to be paid from its Asian Development Fund to finance the Nepalese Rural Finance Sector Development Cluster Program and other similar programs. more...

Over 80 Participants Attend Cluster Development Programme :-
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In its continuous effort to enhance the capabilities and competitiveness of small and medium-sized entrepreneurs in the country, the Ministry of Industry and Primary Resources - through the Entrepreneurial Development Center - held a Cluster Development Programme on June 8. more...

TDAP holds seminar on knitwear industry :-
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The Cluster Development Programme of Trade Development Authority of Pakistan (TDAP) organised a seminar on future challenges and solutions for the knitwear industry at a local hotel the other day. more...

Sikkim to prioritise cluster development of horticulture :-
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Sikkim Science & Technology Minister Bhim Dhungel said that the State Government is giving priority for cluster development in horticulture sector. more

10th Malaysia Plan Puts Importance On Rural Development, Says Najib :-
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The government is focusing on developing rural areas under the 10th Malaysia Plan to allow Malaysians living in less developed areas to enjoy a better standard of living, Datuk Seri Najib Tun Razak said Tuesday. more

Business clusters to lift competitiveness, spur development :-
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The development of small- and medium-sized enterprise (SMEs) clusters will help Viet Nam's businesses raise their competitiveness, more deeply integrate into the world economy and contribute to the country's sustainable growth, according to head of the Ministry of Planning and Investment Agency for Enterprise Development Ho Sy Hung. more

Banana cluster in the offing :-
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The Centre plans to develop a cluster of banana-based units under the Micro and Small Enterprises Cluster Development programme. more

ENERGY & ENVIRONMENT ISSUES

Environment conference reviews civilian nuclear energy use :-
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Civilian nuclear energy use was the main event at the 38th annual conference of the Israeli Society for Ecology and Environmental Sciences at Ben Gurion University of the Negev this week. more...

PM says global economic recovery must for India to meet development targets :-
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Prime Minister Manmohan Singh today said that, for India to meet its ambitious development targets, it was necessary that the global economy continued to recover in a stable and predictable manner. more...

China Energy Conservation and Environmental Protection Group to form joint venture with Plasco Energy :-
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China Energy Conservation and Environmental Protection Group (CECEP), a Chinese state-owned company engaged in the fields of energy conservation, emission reduction and environment protection, has signed an agreement with Plasco Energy Group, Inc., a Canada-based waste conversion and energy generation company, to form a joint venture (JV) CECEP-Plasco China Corp. more...

General Environmental Management Announces LOI with Bio-Energy Solutions Group for Management of Waste-to-Energy Project in Brazil :-
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GEM Announces Decision to Forgo Financing and Acquisition of California Living Waters

POMONA, Calif., Jun 23, 2010 (BUSINESS WIRE) -- General Environmental Management Inc. (GEM) /quotes/comstock/11k!gevi (GEVI 0.06, 0.00, 0.00%) announced today that it has entered into a Letter of Intent to execute formal agreements with Bio-Energy Solutions Group, Inc. (BESG) to manage their waste-to-energy operations in Pernambuco, Brazil, including the collection and processing of municipal solid waste and subsequent conversion to alternative energy. The management agreement will have a term of 15 years. more...

INFORMATION COMMUNICATION TECHNOLOGY

ICT agenda for the new leadership :-
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The outgoing administration's primary focus in its Information and Communications Technology (ICT) agenda was Job Creation. This effort spawned an industry which has not only created over half a million ICT-related careers nationwide for our youth, it has also succeeded in generating investments into the country and making the Philippines only second to India in the Outsourcing industry. more

IndiaMART.com empowers SMEs with low-cost ICT solutions :-
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Aspiring to enable the Small and Medium Enterprises (SMEs) harness the power of Information and Communication Technology (ICT), IndiaMART.com, joins hands with Internet & Mobile Association of India (IAMAI)to present a conference 'Free for SMEs' which would lay thrust on cost-effective ICT applications and services. more...

Intel signs MOU with NE :-
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The North Eastern Council (NEC) is the nodal agency for the economic and social development of the North Eastern Region which consists of the eight States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. more

Gov't CIOs celebrate ICT Month with RP E-Governance Awards :-
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Some 200 government chief information officers (CIOs) and executives concerned with information and communications technology (ICT) representing national government agencies, government-owned and controlled corporations, and local government units are commemorating the annual ICT Month with a forum on e-Governance entitled "Public Service 2.0: From e-Government to e-Governance" June 22-23 at the Intercontinental Hotel, Makati City. more

More should be done to promote ICT sector :-
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When this year's Budget was read, there was the feeling that more could have been done to promote the ICT sector. more

INTELLECTUAL PROPERTY RIGHTS (IPRs)

SEF says ECFA to be signed on June 29 :-
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An SEF official said after the proposed pact is inked, it will be sent to the Cabinet and then the legislature, which will call a provisional meeting for approval. more

India asks US to remove ISRO, DRDO from banned list :-
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India has "very firmly" asked the US to ease export controls and remove top Indian agencies like the Department of Atomic Energy (DAE) and the Indian Space Research Organisation (ISRO) from the banned list. more

RI strives to get off US copyright watch list :-
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The government is promoting copyright awareness among small and medium enterprises in an effort to be removed from the US Trade Representative (USTR)'s Priority Watch List, a minister says. more...

New Customs regulations strengthen intellectual property rights protection in China :-
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Customs protection has an increasingly important role in the enforcement of intellectual property rights ("IPR") in China. Many IPR owners record their rights at Customs to facilitate enforcement. In March 2010, the State Council issued amendments to the Regulations on Customs Protection of Intellectual Property which became effective on 1 April 2010. more..

ÜS?AD: More focus on IPR needed for foreign investments :-
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Turkish Industrialists and Businessmen's Association (TÜS?AD) Chairwoman Ümit Boyner has stressed that a reinforcement of intellectual property rights protection should be high on the country's agenda to improve the investment environment in Turkey. more..

MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

Government bolsters SME lending with new fund :-
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The Government is creating a new source of finance for fast-growing SMEs. As announced in yesterday's emergency Budget, support for small businesses with high growth potential will appear in the form of an Enterprise Capital Fund that will provide an extra £37.5 million in equity finance for qualifying firms. The funding will be raised through a £25 million injection of tax-payer cash and £12.5 million in private co-investment. more

Indian exporters apprehensive on China's yuan flexibility move :-
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Although Indian exporters have hailed the recent move by China to make yuan more flexible in near future, they are still apprehensive about its possible

benefits, which will be nullified if rupee continues appreciating or China shows lack of commitment to what it has promised. more...

FORTHCOMING EVENTS

:::: OUR INITIATIVES ::::

Workshop on Knitwear Design & Garment Technology

Workshop on Knitwear Design & Garment Technology was organized at Ludhiana Knitwear Cluster by Apex Cluster Development Services Pvt. Ltd. to increase awareness in the cluster on knitwear designing and technicalities of the same, in association with Knitwear Club on June 11, 2010. The workshop was conducted by eminent professional from Pearl academy of Fashion, New Delhi.

The first session conducted by Mr. Tarun Pandey, Associate Professor, Pearl Academy focused on importance of effective management in knitwear industry. The changing timeline required for producing garments over the years was discussed as he advised that the lead time provided by buyers has been decreasing every year and has come down from 167 days in 1999 to 126 days in 2009. The evolution and factors affecting the supply chain management were discussed in detail. The exhaustive flow chart of order processing was provided and the ways to reduce wastages at various stages of production were discussed thoroughly. Benefits of various tools to control production flow like Time and Action plan, Gantt Chart, etc were emphasized during the workshop. Details were given of capacity calculation as well as effective costing as the profit margins are reducing day by day and the cluster need to retain its competitiveness with other markets providing similar items.

Another presentation by Mr. Pandey was on lean manufacturing and its major concepts. Evolution of Modern Production systems right from processes followed by Ford to Toyota and to the present day concept of Lean Manufacturing was discussed in detail. Industrial Engineering and the various factors involved in the process received special attention of the participants, as this is a relatively new concept for the knitwear industry. The ways to maximize direct and indirect labor utilization need to be enforced as well as the need to eliminate unnecessary component movement was emphasized. Various layout plans followed throughout the world in knitwear industry were shown to the participants. Mr. Pandey also shared a video of Unit Production Systems being followed in factories at Thailand, which was much appreciated by the participants.

The second session of the workshop conducted by Ms Sonali Sonipal, Assistant Professor of Textile Design, Pearl Academy of Fashion covered various processes involved in product development and diversification. The presentation was extremely interesting as it imparted information on how a product range or collection can be developed using authentic research process. Ms Sonipal emphasized the need to work on original creations instead of looking for ideas on the various websites. The design process starts with a design brief provided by the client and a theme selection by the designer in association with the client. A thorough visual research is necessary to create original collection and prepare appropriate inspirational board based on the visual research. A novel concept of multi drape able garments was shown which was much appreciated by the participants. The process of creating a template for developing a range, and then using the template in various styles in a highly creative manner was taught to the participants. The workshop was of great help to the participants and was much appreciated in the cluster.

:::: KNOW YOUR CLUSTER ::::

Karnal Town of Haryana State is situated on National Highway No.1 (G.T. Road) between Delhi and Chandigarh. It is exactly in the middle of the 250 Km span between Delhi the National Capital and Chandigarh, the state Capital of Haryana & Punjab. Karnal is a historical place related to Mahabharta period. This place was army camp of legendry Karna, the sixth brother of Pandvas. Presently Karnal is the famous for two main reasons. First the presence of around 10 Nos. of ICAR Units, many of whom are National level like National Dairy Research Institute (NDRI), National Bureau of Animal Genetic Research (NBAGR) & Directorate of Wheat Research (DWR) etc. Secondly Karnal is a famous centre of production of most of the kinds of Agricultural implements and their components.

There are around 70 working SMEs in Karnal Agricultural Implements cluster. Besides there are 25 to 30 units in nearby towns within 20 to 25 km radius. These units produce implements like - Cultivators, Disc Harrows, Shrub Masters, Land Levellers, Bund Formers, Seed -cum- Fertilizer Drills, Zero Tillage Machines, Straw Reapers & Thrashers etc. Some units manufacture some of the important components of implements such as - Harrow / Plough Disc, Cultivator Tynes, Cultivator Spring, Shovel. Some Casting units are also there at Karnal. Present annual Turn over of Karnal Cluster is around Rs.198 crore. Cluster provides direct employment to more than 1000 persons. This turn over of Karnal cluster is 18% of the Gross output of Agricultural implement manufacturing segment in SME sector.

The main manufacturing operations performed are -press work, fabrication, welding, machining, forging, metal forming, heat treatment etc. The working style of SMEs in the cluster is almost traditional and family run business type. Modern management techniques are not popular. Despite the presence of many R & D institutes in local and nearby areas, SMEs have not developed strong linkages with them resulting in no significant improvement in design and standards of implements or introduction / development of new implements.

Inter firm linkages and sub-contracting among SMEs in cluster is almost non existent. There are no hard networks (consortia). However there is a manufacturers association which takes up the matters of common concern with appropriate authorities.

The major market for Karnal implements is Haryana, UP, Uttaranchal, Rajasthan, MP, Chhatisgarh, Bihar, Jharkhand some parts of Maharashtra & Gujarat, and even north east. Only 2-3 units are exporting their products. However major export share is from Harrow disc. Domestic market share of Karnal cluster implements is shrinking due to various reasons.

There are many possibilities for improvement in the working of SMEs in the cluster. Major identified areas for improvement are Machinery & Technology, Design, Quality Management systems, Human resources and Business Development Services. There is also scope for improving inter-firm linkages and inducing networks for common buying of Raw Materials and Consortia based exports. This will help in enhancing there bargaining power in front of Raw Material suppliers as well as customers too.

Strengths of cluster are Strong presence in domestic market, Location in agriculturally advance and rich region, Good Transport linkage- National Highway No, 1, State Highway and Railways, Purchase by State Govt. Agriculture Deptts. And Corporations for further supply to farmers and almost no import of the product for farmers use. Also availability of main components i.e cultivator tynes, springs and harrow disc is local and prompt, availability of castings from nearby Kaithal and other working parts for thresher and Seed Drills etc. from not so far away places of Punjab, major raw material structural steel supply from nearby Mandi Gobindgarh and TATA & SAIL sales offices in Delhi/Fbd are an additional advantage.

Some of the weaknesses are seasonal market for different products, therefore, longer off seasons for majority units that are confined to narrow product range, implements have normally long life, therefore, the replacement sale hardly to the tune of 10 to 15%, payment are not prompt from dealers/traders due to stiff competition, lack of knowledge of export marketing / documentation, lack of brand image, lack of Internet exposure, cut throat competition on price at the expense of quality and inadequate information of changing techniques of farming. Also Local non-availability of sufficient casting parts and moving parts like gears/shafts and sub assemblies, cluster is solely dependent on Mandi Gobindgarh for supply of structural steel that to through commission agents, no incoming inspection of raw materials and components and no structured system of quality control exist. There is No skill development training programme / facility for workers in the line and cluster usually depends on under qualified Tool and Die makers having no facility / Ability to upgrade their knowledge for newer materials and techniques.

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