Mapping Non-Financial Gaps in the Engineering Cluster of Coimbatore
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Mapping Non-Financial Gaps in the Engineering Cluster of Coimbatore Study Report March 2014
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE Submitted to: International Consultancy & Coordination (ICC), SIDBI Submitted By: Grant Thornton Acknowledging inputs from: Micro, Small and Medium Enterprise- Development Institute, Coimbatore District Industries Centre, Coimbatore Coimbatore Industrial Infrastructure Association Coimbatore Tiny and Small Foundry Owner’s Association Indian Institute of Foundry Men, Coimbatore Canara Bank, Coimbatore Tamil Nadu Small Industries Development Corporation Small Industries Testing and Research Centre Small Industries Development Bank of India, Coimbatore Coimbatore District Small Scale Industries Association Coimbatore Wet Grinder Manufacturers Association, Coimbatore South India Engineering Manufacturers Association, Coimbatore Small Industries Development Bank of India, Coimbatore
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 1
Contents
Page
List of Tables 3
List of Figures 4
List of Abbreviations 5
Executive Summary 6
Chapter 1: Introduction 11
1.1. Context of the Assignment 11
1.2. Need for the Mapping Exercise 11
1.3. Objective and Scope of the Assignment 11
1.4. Approach and Methodology 12
1.5. Industry Scenario 13
1.6. International Scenario 14
1.7. National Scenario 14
Chapter 2: Cluster Profile 16
2.1. Historical Evolution of the Cluster and Key Turning Points 16
2.2. Geographical Spread of the Cluster 16
2.3. The Cluster Profile 16
2.4. Manufacturing Process 17
Chapter 3: Cluster Analysis 22
3.1. Status of Previous Interventions 22
3.2. Status of Cluster Linkages 22
3.3. Analysis of Business Operations 23
3.4. Pressure Points to be Addressed 26
3.5. Value-chain Analysis 27
Chapter 4: Market Assessment of BDS 29
4.1. Overview of the BDS Market 29
4.2. BDS Analysis 30
4.3. Supply Side Assessment 32
4.4. Demand Side Assessment 35
4.5. Demand and Supply Analysis 36
Chapter 5: SWOT & Vision 37
© Grant Thornton India LLP. All rights reserved.
Member firm of Grant Thornton International Ltd
Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, New Delhi, Noida and Pune
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 2
5.1. Strengths 37
5.2. Weaknesses 37
5.3. Opportunities 38
5.4. Threats 39
5.5. Vision 39
Chapter 6: Interventions Options/Plans 40
Annexure 1: Cluster map 46
Annexure 2: District map of Coimbatore 47
Annexure 3: List of firms, and public and private BDS providers interacted with over the study48
Annexure 4: Questionnaire-Schedule and discussion-formats deployed over the study 51
Annexure 5: Format of the Discussion Format vis-à-vis BDS providers 64
Annexure 6: Format of the Discussion Format vis-à-vis BDS facilitators 65
Annexure 7: Participants of Stakeholder Consultation organised for mapping non-financial gaps in
the engineering cluster of Coimbatore 66
© Grant Thornton India LLP. All rights reserved.
Member firm of Grant Thornton International Ltd
Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, New Delhi, Noida and Pune
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 3 List of Tables Table 1: Brief on current technology and equipment gaps; Benchmarked options............................... 24 Table 2: Basic Value-Chain –Foundry........................................................................................................... 27 Table 3: Basic Value-Chain –Motor Pump................................................................................................... 27 Table 4: Basic Value-Chain –Wet Grinder ................................................................................................... 28 Table 5 Public BDSP ....................................................................................................................................... 30 Table 6 Private Service Providers .................................................................................................................. 30 Table 7 BMO’s .................................................................................................................................................. 30 Table 8 Status of subsidisation in respect of services ................................................................................. 31 Table 9: Status of existing BMOs and their related service providing platforms with respect to their capacity for service provisioning .................................................................................................................... 35 Table 10: Demand assessment and level of usage of different services .................................................. 36 Table 11: Constraints in the development of market for Strategic BDS ................................................. 36 Table 12: Action Plan....................................................................................................................................... 42 © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 4 List of Figures Figure 1: Process flow in a Foundry .............................................................................................................. 19 Figure 2: Process flow in the case of Mono block pumps ......................................................................... 20 Figure 3: Process flow in the case of Wet Grinder Home Appliances .................................................... 21 © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 5 List of Abbreviations S.No Abbreviation Full Form 1. BDS Business Development Services 2. BIS Bureau of Indian Standards 3. CFC Common Facility Centre 4. CGTMSE Credit Guarantee Fund Trust for Micro Small Enterprise 5. CII Confederation of Indian Industry 6. CLCSS Credit Linked Capital Subsidy Scheme 7. CMA Coimbatore Management Association 8. CODDISSIA Coimbatore Small Scale Industries association 9. COINDIA Coimbatore Industrial Infrastructure Association 10. COSMOFAN Coimbatore Tiny and Small Foundry owners Association 11. CPC Coimbatore Productivity Council 12. DIC District Industries Centre 13. ERP Enterprise Resource planning 14. FIs Financial Institutions 15. GIZ Deutsche Gesellschaft for Techhnische Zusammenarbeit 16. IIF The Institute of Indian Foundry men 17. IIPM Indian Institute of Pumps Manufacturers 18. ISI Indian statistical Institute 19. ISO International Standards Organisation 20. ITI Industrial Training Institute 21. KFW Kreditanstalt for Wiederaufbau 22. MSME-DI Micro Small and Medium Enterprise Development institute 23. NSIC National Small Industries Corporation 24. R&D Research and development 25. SIDBI Small Industries Development Bank of India 26. SIDBI-FDP SIDBI Finance and Development Project 27. SIDCO Small Industries Development Corporation 28. SIEMA The southern India Engineering Manufacturers Association 29. SITARC Small Industries Testing and Research centre 30. SMERA Small and Medium Enterprises Rating Agency 31. SPV Special Purpose Vehicle 32. SWOT Strengths-Weaknesses- Opportunities-Threats 33. TACT Tamilnadu Tiny and Cottage Industries association 34. TAPMA Tamilnadu Pumps and Motors Manufacturers Association © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 6 Executive Summary The Micro Small and Medium Enterprise sector in India has virtually emerged as the engine of economic growth by contributing significantly towards industrial production (45%), exports (40%) and employment generated (110 million). It is the second largest source of employment after agriculture. Nevertheless, the growth of the sector is perceived to be far below potential. Basically, the non-availability of institutional credit is a critical constraint to potential growth of the MSME sector. In addition, the non-credit needs are also important. It is in this context that SIDBI has decided to intervene in 30 clusters in India including those covered earlier under the Business Development Services (BDS) programme under the MSME Financing and Development Project (MSME-FDP).This particular study considers strategic BDS related circumstance, its need and scope with special focus on infrastructure, support services, synergies with Government schemes and credit gaps vis-à-vis related BDS. The initiative maps non-financial issues, particularly, vis-à-vis BDS hindering growth and competitiveness of the engineering cluster at Coimbatore. Grant Thornton India, LLP has been commissioned to undertake the same. Non-credit needs has reference to those like strategic services, including training, skill improvement, marketing inputs, product development, quality management system (QMCs), common facilities to reduce gaps and exploit opportunities in terms of related and supporting enterprises and institutions/value-addition/joint technology up- grading, physical infrastructure and others. In fact, it has been observed that a balanced approach towards both credit and non-credit needs will strengthen the eco system for MSMEs. Engineering is a diverse industry with a number of segments, and can be broadly categorized into two segments, namely, heavy engineering and light engineering. The heavy engineering sector firms make capital goods/machinery and equipment like steel plants and boilers. Light engineering is one which may depend on demand on a variety of end-user industries such as power, mining, oil and gas, consumer goods, automotive and the general manufacturing sector. In this context, some clusters like Coimbatore are more specialized with units largely into manufacturing products like pumps and motors and wet grinders and supported by foundry units. In the last decade, the global castings industry has grown at over 7 per cent per annum in many years. China dominated the market followed by the USA. With regard to the pumps and motor segment, the global market for pumps is expected to touch over USD 28.3 billion by 2015, with an average annual compound annual growth rate of 2.8 per cent. With regard to wet grinders’ home appliances, India is perhaps the only producer of wet grinder catering to the needs of (largely) the domestic South Indian market. Indian Pumps & Motors are now being exported to more than 70 (both) developed and developing countries. Apparently, however the potential for tapping the export market is still unexploited. With regard to the wet grinder home appliance segment, Coimbatore is perhaps the only significant cluster in the country manufacturing the product. The Cluster at Coimbatore The Motor and Pump segment evolved in Coimbatore district in the early 1920’s. The first pump was developed in 1928 in Coimbatore. With growth of the pump-set and textile segment in the region, a large foundry sector evolved. By the 1980s, Coimbatore evolved into a major foundry hub. A pumping system consists of a pipe, a mover piping system and a foot valve. The pump is driven © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 7 by the prime mover. There are various types of pumps such as monoblock and jet pumps for domestic and agriculture use. There are also submersible pumps for use in bore wells and open wells for agriculture use largely (also in the largely rain fed agriculture regions of the state).Various types of wet grinders are available in the market starting from 2 ltrs capacity and up to 40 ltrs capacity. Higher capacity wet grinders from 3 litres onwards are used for commercial purposes like hotels, marriage halls, commercial batter manufacture, etc. Simple machineries such as lathes, drilling machines, welding machines are presently used in the production process. The UNIDO has been implementing pumps and motors cluster development programme over the last few years. Process upgradation and energy efficiency in foundries is an important area of intervention through provision of related BDS. This program is on-going and SME foundries are particularly targeted. Also, cluster firms have also jointly implemented a project for relocation of many small foundries to the outskirts of Coimbatore and establishment of some common facilities required for pumps, motors and foundry units through evolution of COINDIA, an SPV promoted under the IIUS scheme of Govt. of India (at a project cost of about Rs.67 crore) in PPP mode. This initiative on redressing some infrastructure gaps was followed by establishment of a small CFC (project cost of less than Rs.2 crore) for wet grinder manufacturing units comprising stampings and copper wire drawing equipment. In summary, with respect to the BDS related intervention in the engineering cluster of Coimbatore under the MSE-FDP by the dynamic APITCO, areas such as quality, skill upgrading, energy savings measures and technology up gradation were focused upon Apparently, over 45 new service providers were introduced to cluster firms. Associations and firms could realize the advantages of their interventions. Apparently, there was facilitation of quality certification like the BIS and BEE for 50 firms. Also, with regard to skill development interventions, upgrading of over 500 semi-skilled persons was facilitated and many of them absorbed in large firms and about 50 trained persons availed of loans for purchasing CNC equipment. Further, energy saving measures were adopted by 25 firms. Energy audits have apparently demonstrated that savings worth nearly Rs.25 lakh has been accrued with a payback period of 3-5 years. In addition, about 6 technology upgrading programmes were organized over the project resulting in installation of the Divided Blast Technology in units. Improvement in terms of quality and savings of fuel was experienced. Some standardization of components in motors and pumps was also facilitated. With regard to the wet grinder home appliance segment cluster firms sell to wholesalers and retailers (many in own brands). The recent state govt. demand for free supply of wet grinders across the state has led to massive growth in cluster and enterprise turnovers over the last 2-3 years in the case of at least some 20 odd firms who cater to such govt. tender requirement (largely) on consortium basis. Some critical technology gaps vis-à-vis MSE cluster firms in the cluster maybe viewed in terms of access to large capacity injection moulding equipment to make large dimension products and enable product mix enhancement for wet grinder and home appliance units. This will reduce (the presently) excessive reliance on govt. demand and reduce possible future risk. So also, micro-sized foundry units suffer from want of access to productivity enhancing and compliant induction furnaces which could optimise their raw material primary processing costs. Overview and Supply of Business Development Services Presently, the demand and supply side are weak in many areas. As regards demand of services, there is a lack of awareness among majority of SMEs about the efficacy of availing some BDS (ERP, QMS) and capabilities of BDS providers (e.g. domestic marketing). Apparently, majority MSEs in the units have not availed of any strategic BDS but for DPR preparation for loan syndication. A few small and many medium firms, in addition have availed of QMS (ISO 9000) services. This is more because their customers require this. These are typical fee based services used. Notably, in some cases main contractors provide training & design (drawing) services to MSEs as part of embedded services. Suppliers of machinery & equipment also provide training as part of embedded services. Apparently, a range of operational BDS is also being leveraged by MSMEs in the cluster in terms of tax, audit and maintenance. © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 8 BDS in the cluster are provided by government support institutions or Public BDS providers, Private agencies/individuals and business management organisations (BMOs). The services availed by cluster MSMEs may be considered in terms of: ISO Certification; Tax & Audit; Testing; Credit Rating; Manpower sourcing; Training of operators/ supervisors; Energy & Environmental management; Productivity improvement; Energy efficiency certification and even BDS vis-à-vis establishment of lean manufacturing systems (though to a lesser degree). Coimbatore has the benefit of presence of many dynamic BMOs. Demand for Business Development Services An assessment of demand for services has been pursued in the context of specific value-chain activities in the cluster and MSME scalar typologies. For purposes of considering typical services availed, those that are (relatively) widely employed have been considered. Those services have been particularly considered that are or may be in high demand and could substantially influence performance of cluster firms. Perceived demand and need for services may be viewed in terms of: Common facility induction furnace (for micro-sized foundry units); Credit linkages: CGTSME and access for all MSE units; Bills receivables or factoring instrument for MSE foundry units; Linkages with Govt. PPP schemes: MSE-CDP, IID, Private Industrial Estate Scheme; Export market study and facilitation to enhance export market mix of SME pumps and motor units; ECB facilitation for small wet grinder home appliance units; Dedicated Industrial Infrastructure to facilitate relocation of MSEs (for MSE wet grinders/home appliance units); Common facility (to support expanding the product and market mix for wet grinder/home appliance units); Upgradation of SITARC testing and training equipment for use largely by pumps and motor as well as other MSME units. Cluster Vision The short as well as longer term cluster vision that was evolved in this regard is: Short term: The Coimbatore engineering cluster will evolve into a more competitive hub for engineering and foundry products like pumps and motors, home appliances and castings through upgrading productivity, technological capabilities and industrial infrastructure by the year 2017. Longer term: The Coimbatore engineering cluster will evolve into a preferred global sourcing hub for engineering and foundry products by the year 2024. Pressure Points and Intervention Plan Cluster firms have been growing over the last few years. Segments such as pump and motors have been increasingly export oriented and the wet grinder home appliances segment been growing at a rapid pace with favourable demand conditions. In these twos segments, Coimbatore is a virtual national leader. The Foundry sectors performance has also been impressive. Cluster BMOs have demonstrated a strong degree of co-operative efforts in implementing even “hard interventions” under PPP schemes of the GoI such as the IIUS and the MSE-CDP and hence necessary scaling up initiatives may be undertaken through catalysation or provision of related BDS with relative ease. The earlier project under SIDBI-FDP has also apparently initiated demand for infrastructure, common facility and market development and credit related BDS. Presently, there is need for a project to ensure implementation of those options scaling upon earlier initiatives. Infrastructure: Micro and Small-sized pumps and motor units at the Netaji Industrial Estate Manufacturer’s Society have poor access to intra-estate roads and utilities (in terms of water and sewage facilities). Initiative to upgrade infrastructure on PPP mode at a project cost of about Rs. 10 crore with assistance under the IID scheme is expected to complement relocation of units in the pumps and motor and foundry sector. Further a critical constraint identified by the Coimbatore District Electroplater’s Association comprising 112 members is the need for relocation to an enclave with necessary CETP facilities. In fact, there is a need for an ETP for treating waste such as sludge in painting jobs by engineering units and chrome by electroplating units. These units are already under the scanner of the TNPCB for chrome (water) and air pollution. Related BDS to twin their need with the new scheme for private industrial estate is an option. This scheme was introduced by the GoTN where PPP assistance to the tune of 75 per cent of the project cost (of total project cost © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 9 of Rs.20 crore) is offered. A related constraint confronted by wet grinder home appliance units is vis-à-vis constrained operations within the crowded urban agglomeration of Coimbatore. Relocation is expected to help inventory and material handling activity considerably and enhance capacities. Twinning with the State Govt. scheme indicated earlier is an option. In all such cases, there are apparently no BDS providers with related experience and hence there may be need to leverage on services of specialised BDSPs from outside the cluster Common Facilities and technology: The BMO Coimbatore Tiny and Small Foundry Owner’s Association is keen to redress a critical constraint vis-à-vis melting activity for micro-sized foundry units in the cluster. Establishment of coreless melting /induction furnace as a raw material primary processing facility could enable quality and cost upgrading in the raw material front for micro-sized foundries who find it difficult to upgrade from present coal fired cupolas. Similarly, the COWMA could serve as a platform to evolve an SPV to redress a critical constraint in terms of focus of member units on the wet grinder segment alone. Product mix diversification to other home appliance products with larger capacity capital intensive injection moulding equipment as part of common facility is an apparent need. Both these common facilities may also be established on PPP basis at a project cost of about Rs.15 crore each under the MSE-CDP scheme of the GoI which offers grant-in-aid assistance to the tune of about 90 per cent of project cost. Related specialised BDS may also have to be outsourced from outside the cluster, initially. Finance & Credit: There are 3 critical interventions required in this regard. Most cluster firms in the engineering sector as a whole have not had access to collateral free credit under the CGTMSE or leveraged eligible assistance under the CLCSS. Further, there is dire need for a receivables financing or factoring instrument to be developed/twinned with wet grinder units to help tide over the long delay in receivables of even up to 4 months from the state govt. Many such units are also eagerly to source ECBs as an option to possibly reduce cost of capital. BDS on these fronts are an important need. IPRs and Productivity: There is also scope to develop use of IPRs for design proprietorship, which will encourage firms in necessary design development and R&D. Related BDS service providers and markets may be developed. Also, QMS practices such as lean manufacturing is yet to be absorbed by firms to the extent desired. Related BS is also need. Envisaged Benefits of Intervention Ideally, an implementing agency may be identified by SIDBI to help implement the envisaged interventions as part of a 3 year project. The impact may be viewed in terms of development of market for related strategic BDS and capacity building of local BDS as well as on MSMEs. In terms of the developing a market for related BDS the envisaged impact of the intervention could be viewed in terms of either introducing new BDS in some strategic service areas, for instance, in terms with respect to leveraging assistance under PPP schemes of the GoI, enabling existing BDS providers register increased usage, enabling existing BDS providers offer new service in some cases and existing BDS providers register increased usage. The intervention will enable about 150 MSEs in the foundry sector and pumps and motor to have access to basic infrastructure facilities to complement relocation. It will also enable about 40 MSE units electroplating units to relocate and gain access to more compliant infrastructure (with ETP for chrome/air pollution). About 30 MSE wet grinder home appliance units will be helped to relocate outside crowded urban agglomeration of Coimbatore city and function more effectively and productively (inventory handling etc.); Upgrading quality of primary processing activity; increasing productivity. It will also enable enhancement of product market mix for wet grinder home appliance units. Further it will also enable enhanced access to credit to at least 50 MSE units and hence capacity growth of at least 100% in these units. There will also be increased access to more competitive credit options to SMEs for at least 3 units on demonstration basis; optimizing cost of credit. Further there will be a reduction in burden of delay in bills receivables among MSEs. Also in terms of pproductivity and quality enhancement of at least 20 per cent in cluster firms (at least 60 units to be benefitted). At least 20 SME units to establish effective IT based management systems in © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 10 enterprise management and at least 20 units go in for design/IPR registration and undertake indigenous R & D efforts to greater degree. © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 11 Chapter 1: Introduction 1.1. Context of the Assignment The Micro Small & Medium Enterprise sector in India has emerged as the engine of economic growth by contributing significantly towards industrial production (45%), exports (40%) and employment generated (110 million) – the second largest source of employment after agriculture. Nevertheless, the growth of the sector is perceived to be far below potential. Different studies have pointed out that only a small percentage of credit requirement of micro and small enterprises are met from institutional finance. This indicates that a vast segment of MSMEs in the country still remain unconnected with formal financial institutions. Basically, non-availability of institutional credit is an important constraint in the potential growth of the MSME sector. In addition, the non- credit needs are also important. It is in this context that SIDBI has decided to intervene in 30 clusters in India including those covered earlier under the Business Development Services programme under the MSME Financing and Development Project (MSME-FDP). The particular study considers strategic BDS related circumstance, its need and scope with special focus on infrastructure, support services, synergies with Government schemes and credit gaps vis-à- vis related BDS. The initiative maps non-financial issues, particularly, vis-à-vis BDS hindering growth and competitiveness of the Engineering cluster at Coimbatore. Grant Thornton Advisory has been commissioned to undertake the same. 1.2. Need for the Mapping Exercise Non-Credit needs has reference to those like strategic services, including training, skill improvement, marketing inputs, product development, quality management system (QMS), common facilities to reduce gaps and exploit opportunities in terms of related and supporting enterprises and institutions/value-addition/joint technology upgrading, physical infrastructure and others (like design etc.). These have been identified from time to time by several working groups including the 11 sub-groups of the Ministry of MSME which dealt with both credit and non-credit needs of MSMEs. In fact, it has been observed that a balanced approach towards both credit and non-credit needs will strengthen the eco system for MSMEs. 1.3. Objective and Scope of the Assignment In this context, the study covers the gaps for non-financial services (BDS), with focus on strategic services, existing institutional mechanism to improve the supply of BDS in these clusters and to improve the availability of other transactional support services to enhance and supplement the BDS supply. The infrastructure and marketing gaps are also mapped in the cluster and the study suggests actionable points for all above. In addition, the study presents options to evolve synergies between Government schemes and issues and gaps identified. More specific objectives of the assignment (scope of work) are as follows: The assignment involves preparation of a report mapping non-financial gaps in the engineering cluster of Coimbatore presenting - © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 12
Definition of the cluster and its geographical boundaries, historical origin, vital statistics and
profile (number of firms, turnover, average investment in plant & machinery, direct and
indirect employment etc.)
Status of previous interventions if any
Status of cluster linkages (network of cluster firms amongst themselves and with other
stakeholders)
Analysis of Business Operations in the cluster
SWOT analysis in brief
Vision for the cluster (short term for a period of 3 years, and longer term over a period of
about 10 years)
Current pressure points and actionable pressure points on these pressure points
Special focus has been laid on:
Business Development Services (BDS) – BDS which are strategic in nature than mere
“operational” and are necessary to improve the competiveness of the cluster. The kind of services
required in the cluster mapped in terms of their present status, the desired situation etc. in the
cluster as perceived by stakeholders. The eco-system of the cluster has been mapped to mark the
criticality of these BDS in the entire ecosystem. The study not only identifies the need and scope for
the services but also find out the services that MSMEs require but don’t have access to in the
cluster. Tools such as “who does who pays matrix”, “VCA” etc. have deployed as required for
mapping/analysis. One chapter of the study report exclusively addresses the BDS markets from the
demand and supply side.
Credit Gaps: The issues related to credit have been mapped in terms of BDS and its potential
impact in the cluster.
Infrastructure: Issues affecting growth of the cluster, that is, spatial issues in terms of basic cluster
infrastructure (roads, utilities like power, water and drainage), industrial infrastructure – like estates
and parks, IT services infrastructure, environmental compliance, renewable energy related
infrastructure, technology upgrading/value-chain gap filling common facilities etc. Gaps in these
contexts have been identified and possible actionable points to address them with rough cost
estimates.
Support (transactional) services: Support service areas which are necessary for improvement in
the cluster has also been considered. Present stage of these services (status of services, no. of service
providers, percentage of MSME availing their services, network of service providers etc.). The study
will identify the need and scope for their services.
Synergies with Government Schemes: The study also maps the issues and existing schemes of the
concerned State government, Central government including that of the MoMSME in the context of
the issues and develops synergies between them. The study report also lists out potential areas of co-
operation between SIDBI and related schemes. In addition, efficacy/learning from earlier
interventions in the cluster will be taken in to account.
1.4. Approach and Methodology
A multi-pronged approach has been incorporated involving different stakeholders representing
private sector enterprise, public and private BDS providers and facilitators including BMOs, the
State as well as Central Government institutions. These include the DIC, TANSIDCO, Technical
and Financial Institutions etc. While undertaking the assignment, the following approach has been
adopted:
© 2014 Grant Thornton India LLP. All rights reserved.MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 13 A. Inception Report Preparation and submission of an inception report explaining the proposed methodology for addressing the critical processes listed earlier, including the scope of work and deliverables and methodology and indicative data base. The inception report comprised a questionnaire schedule to conduct a sample survey amongst about 50 MSMEs in the cluster. The schedule was deployed more as a discussion format for qualitative analysis than as a tool for statistical and quantitative analysis. It also included a detailing of a discussion format to be adopted while undertaking primary research, consultation with BDS service providers and facilitators. B. Study Report The subsequent stage involved preparation and submission of this study report. The study report preparation involved both primary and secondary research. Primary Research: The study involved primary study through use of a questionnaire – schedule to conduct a sample survey amongst MSMEs, stakeholders of different typologies (micro, small and medium) were particularly studied. The questionnaire schedule is adopted not for mere statistical analysis but more to glean a deeper understanding of related gaps and intervention options. Co- ordination with the agency engaged for credit mapping was considered to the extent feasible. It also involved primary study of private & public BDS providers and facilitators through a discussion format. Some such service providers may be viewed in terms of the testing labs, tool rooms, BMOs like SIEMA, COWMA, and CODISSIA etc. Secondary Research: The study considered the MSME census 2006-07 data, information available with respective SLBCs, district level Credit plan, related research reports (including study reports, prepared by other agencies), data from industry associations, reports of previous interventions carried out by other agencies earlier, District Industrial Profiles prepared by the MSME-DI/DIC, City Development Plans etc. C. De-Briefing event for SIDBI/Cluster Stakeholders A de-briefing event conducted involving cluster stakeholders and SIDBI representatives where the salient features of the study report is presented as a basic validation exercise. 1.5. Industry Scenario Engineering is a diverse industry with a number of segments, and can be broadly categorized into two segments, namely, heavy engineering and light engineering. The heavy engineering sector firms make heavy capital goods/machinery and equipment like steel plants and boilers, machine tools, mining equipment etc. Light engineering is one which may depend on demand from a variety of end-user industries such as power, mining, oil and gas, consumer goods, automotive and the general manufacturing sector. In this context, some clusters like Coimbatore are more specialized with units into manufacturing products particularly like pumps and motors and wet grinders and home appliances and supported by foundry units. The engineering industry is perhaps amongst the largest contributors to manufacturing sector output, and is integrated with core segments in the economy for its demand. Demand is primarily derived from expansion in the manufacturing and infrastructure sectors. In India, the Ministry of Heavy Industries and Public Enterprises serves as nodal agencies for the heavy engineering segment and the Ministry of Commerce and Industry serves as the nodal authority for the light engineering segment. Some important segments in the engineering industry include: the automotive, the auto- components, pump and motors, machinery and equipment, wet grinder and home appliances industry, electrical machinery, electronic equipment and fabricated metal products industry. India has an advantage in terms of a critical factor condition namely skilled manpower by virtue of its generation of over 1,000,000 engineering graduates a year (though, presently, barely 20 per cent of that in China). As a matter of fact, the CEO of General Electric, Jack Weclh had commented that “India is a developing country as far as its intellectual infrastructure is concerned. We get the highest © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 14 intellectual capital per dollar here”. Also, apparently, India has an advantage of good process, product and engineering skills which may be applied to tasks (as required) for re-design of the manufacturing process as to make them more labour intensive and enable firms to reduce costs. 1.6. International Scenario With regard to the foundry segment in the last decade, the global castings industry has grown at over 7 per cent per annum in many years. Even by 2005, the global production of (grey iron, ductile iron, malleable iron, steel, copper base aluminium, magnesium, zinc and other non-ferrous) castings was 85 million tonnes. China dominated the market with 24 million tonnes, the USA with 12.8 million tonnes, Japan with 6.65 million tonnes and India with about 6.11 million tonnes. Presently, however, China produces the largest volume of castings at 39.6 million metric tonnes per annum. The USA produces a total of 8.24 million metric tonnes and Germany, Japan, Russia and Brazil produces 4.79, 4.75, 4.20 and 3.24 million metric tonnes respectively. Today, China is viewed as the world’s leading foundry nation. Presently, there are over 30,000 foundries operating in China. These foundries vary between each other in terms of scale and technology. The foundry industry contributes by way of production of automotive castings, machine tools, heavy steel power, infrastructure related castings and steel mill castings etc. Some of the leading firms in the segment in China comprise the “Shengquan Group” and “Foseco, China.” It is believed that most of China’s foundries have a poor environmental record, high energy use, and employ dated equipment Also over the next few years, the total number of Chinese foundries are expected to decline sharply (to 20,000 units) with growing competition and stricter pollution control legislation. The industry in China presently employs 1.5 to 1.6 million people. With regard to the pumps and motor segment, the global market for pumps is expected to be USD 28.3 billion by 2015, with an average compounded annual growth rate of 2.8 percent. The most important demand driver in the pump industry is increasing demand for ground water exploitation, desalination of seawater, and other treatment processes. Almost half the investment in pumps for water-related applications is expected to arise in the Asian continent. In addition with increasing urbanization, there is growing need for infrastructure for delivery of drinking water and removal and treatment of wastewater. Rapid growth of the pump market will be encouraged by growth in pulp and paper, chemical, steel, and, oil and gas production, refining, and power generation sectors as well. With regard to the wet grinder home appliance segment, India is perhaps the only manufacturing base in the world as the industry largely caters to (South) Indian domestic demand. 1.7. National Scenario The engineering sector employs over 4 million skilled and semi-skilled workers (direct and indirect). India has a well-developed and diversified industrial machinery/ capital goods base as well as base for a range of other products. The National circumstance vis-à-vis important segments in Coimbatore are revealing. Typically medium sized and large foundries in such locations are more modern with quality standards and accreditation and are working at good capacity. Many smaller foundries, however, still use cupolas using Low Ash Metallurgical Coke (LAM Coke). Largely smaller foundries are yet to switch over to induction furnaces and coke less cupolas as the technology is more capital intensive. India is a global player in terms of castings. This is, at least, in terms of tonnage of castings produced, where India stands next to China. About 4600 foundry units in India are producing over 9.05 million metric tonnes of castings as per the 45th census of castings. About 70 per cent of castings are grey cast iron, 9 per cent ductile iron, 12 per cent steel, and other non-ferrous (including aluminium) 9 per cent. Over 80 per cent of foundries are MSEs and labour intensive. The Indian foundry industry provides jobs to about 2 million people. The industry is making a contribution of about Rs.7000 per tonne to the national exchequer in the form of excise and other duties. Unlike the Chinese growth in export markets, that volume and tonnage –wise huge, the Indian export growth is more in high-end cast products, serving units manufacturing like pump and valves, auto components, mining, mineral and earth moving machinery, etc. © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 15 There are several foundry clusters in India, specialized in different products. These include clusters at Batala, Belgaum, Rajkot, Agra, Chennai, Jalandhar, Coimbatore, Pune, Ludhiana, Kohlapur and Howrah. The Indian pump industry was only USD 6.25 billion in 2005 (2.9 percent of the global market) and is expected to rise to USD 12.5 billion in 2015 (4.4 percent of global market share}. According to industry estimates, India produces 1.2 million pumps of various kinds. There are around 800 large, medium and small units producing pumps for sectors from agriculture to nuclear power generation Indian pump manufacturers are able to meet most of the domestic market demand and exports have registered over 10 percent growth. Indian Pumps and Motors are now being exported to more than 70 (both) developed and developing countries. Apparently, however the potential for tapping the export market is still unexploited. With regard to the wet grinder home appliance segment, Coimbatore is perhaps the only significant cluster in the country manufacturing the product. © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 16 Chapter 2: Cluster Profile 2.1. Historical Evolution of the Cluster and Key Turning Points The Motor and Pump segment evolved in Coimbatore district in the early 1920’s. The first pump was developed in 1928 in Coimbatore. Dhanday udhapani foundry in Coimbatore was amongst the pioneers in the field of pump manufacturing and the first motor was produced at Argus in 1937. Thereafter, the growth of the agriculture sector over Indian 5 year plans encouraged early growth of the sector. A number of units evolved from the 1990s, and domestic-use demand increased along with that for agriculture. With growth of the pump-set and textile segment in the region, a large foundry sector evolved. By the 1980s, Coimbatore evolved into a major foundry hub of the country with more than 500 foundries in the district following Kolkata in terms of number of foundries and smelting capacity. Regional and national demand and evolution of skilled labor and related and supporting enterprises and institutions as well as strong BMOs such as the Indian Institute of Foundry men (IIF) fostered growth of the segment. Larger lead firms led technology change and market and export development initiatives. The wet grinder home appliances segment evolved with favorable factor conditions in terms of stone which is a critical component, as well as regional demand. 2.2. Geographical Spread of the Cluster The cluster units in segments like foundry, pumps and motors and wet grinder home appliances etc. are largely concentrated in and around the urban agglomeration of Coimbatore city. 2.3. The Cluster Profile The pumps and motor units are spread across Pappanaickenpalayam, Ganapathy and Peelamedu and scattered all over the city of Coimbatore. As in the case of pump and motor units, foundry units are also exporting castings to western countries and have made a mark in the export of top quality special steel alloy castings and valve castings for chemical industries. The fortunes of small-scale foundries in Coimbatore fluctuate with that of the pump industry, since the latter is the major customer of the former. Some pump manufacturing units have their own captive foundries. The foundry units are spread across, Peelamedu, Thanneerpandal, Ganapathy, Neelambur. New foundry parks have come up at 3 places namely Arasur, Manickampalayam and Kallapalayam under the Integrated Infrastructure Upgradation Scheme (IIUS) scheme of the DIPP. Cupola is the melting furnace employed by many foundry units. Many cupolas in the cluster are of conventional designs. In fact, electric induction furnaces are yet to be used by the smaller units. © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 17
2.3.1. Principal Markets
The major market is national in the case of pump and motor and foundry units, and South Indian
states in case of other wet grinder and home appliance units. Products are partly exported.
2.3.2. Products manufactured in the cluster
The pump and motor manufacturing at Coimbatore is into manufacturing a variety of products like
centrifugal pumps, reciprocating pumps, jet pumps, gear pumps, process pumps, submersible
pumps and related motors etc. The foundry segment provides inputs to pumps and motors, textile
machinery and other segments with region and also produces products like manhole covers. The
wet grinder segment largely produces different ranges of home appliances. The wet grinder is
basically a home appliance used for preparing the batter, which is the ingredient for “idlis” and
“dosas” (Common South Indian dishes)
2.3.3. Number and Size of Units, Scale of Investment
Foundry Firms
The average investment in plant and machinery in cupola based foundry ranges from Rs. 15-30
lakh/unit based on the capacity of melt per day and for induction furnace units, such
investment is between Rs. 40 lakh–Rs. 1 Cr per unit. The 535 units employ about 10,000
persons.
Small and
Large Medium
micro
Number of Firms 15 70 450
Total Turnover 3400 Crore
Source: IIF Coimbatore
For Motor and Pump Manufacturing Firms
The average investment in plant and machinery of pumps and motor units is about Rs.20 lakh
per unit. The 550 units employ about 15,000 persons.
Large Medium Small Tiny
Number of Firms 20 30 200 300
Turnover 5000 Crore
Wet Grinder Home Appliance Firms
Typical investment in plant & machinery in a wet grinder is largely R.10 lakh. About 8200
persons are employed in the segment.
Large Medium Small Tiny
Number of Firms - - 40 660
Turnover 800 Crore
Some supporting units such as plastic component making units are also operating in the region. The
cluster firm’s turnover has been growing at the rate of about 4 percent every year, the last few years.
There are about 27000 MSME units largely micro-sized units with turnover of about Rs.5200 Crore
in total operating in range of various sub-segments. About, 48,200 persons are directly employed
and directly and indirectly about 1 lakh persons are employed.
2.4. Manufacturing Process
The manufacturing process may be considered in terms of three of the major and distinct
segments in the cluster.
2.4.1. Foundry segment
© 2014 Grant Thornton India LLP. All rights reserved.MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 18 Foundry casting manufacturing process involves making casting in moulds formed either in sand or other material. The casting process involves introducing molten metal into a cavity in the mould, previously shaped as desired and allowing it to solidify. The process of producing castings has different stages - Designing method and gating: The design supplied by the customer is further refined to provide with necessary allowances and selection of parting line. Method and gating are tools deployed. While methoding consists of feeders, which compensates shrinkage in castings, the gating system consists of spruce and runner and in-gates which permit flow of molten metal into the mould. Pattern making: A replica of castings is prepared on the basis of drawings provided by customers. Patterns are made with wood and aluminium. Moulding and Core making: Moulds are prepared in the sand with the help of patterns to secure the same shapes to pattern. Core making is used for hollowness in the casting. Melting and Casting: Metals are melted in suitable furnaces to secure required composition and molten metal is poured into the moulds. Fettling: After solidification of castings, these are removed from mould boxes and unwanted metal attachments like runners and raisers are removed and sand adhered to castings are cleaned. Thereafter, these castings are sent for further operations like heat treatment and machining. Testing and Inspection: Before dispatching of castings, visual and dimensional inspection is carried out. As per customer requirement, non-destructive tests like ultrasonic radiography tests are carried out to study the internal soundness of castings. Basically, the operation of a typical foundry involves: mould sand preparation- sand preparation for mould making; core preparation- sand preparation for core making, melting- preparation of molten metal of the desired quality; moulding- making of the mould; knockout/ shakeout- eliminating sand from the casting; tumbling and shot blasting- cleaning the surface of casting, inspection- inspection of the casting; fettling- grinding for dimensioning and apt finishing of the product and machining- preparation of the product. © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 19
Figure 1: Process flow in a Foundry
SAND MIXING (PREPARATION)
PATTERNS
MOULDING
CORE BOX
INDUCTION CUPOLA ELECTRIC FURNACE
MOLTEN METAL
POURING and COOLING
CASTING KNOCKOUT
SHOT BLASTING
HEAT
TREATMENT
FETTLING
FINISHED PRODUCT
2.4.2. Pump and Motor Segment
Motor
An electric motor basically converts electrical energy into mechanical energy. When electrical energy
(power) is applied to a motor, a magnetic field is created by the stator winding and a torque is
produced, so as to rotate the rotor. This energy is transferred to the shaft. The mechanical energy
produced is used for driving a pump.
Pump
A pumping system consists of a pipe, a mover piping system and a foot valve. The pump is driven
by the prime mover. The commonly used movers are electric motors. The pump consists of a shaft,
which is made to seat on the thrust pad and in between to create head, and Impellers and diffusers
made out of gunmetal or in plastic are housed in separate impeller casing. More the impellers, the
head tends to increase. A pump works on the principle of centrifugal force. The water is sucked and
is thrown outside from the center and it is guided to the outside from the center to the next impeller
by means of diffusers. There are various types of pumps such as monoblock and jet pumps for
domestic and agriculture use. There are also submersible pumps for use in bore wells and open wells
for agriculture use largely (also in the largely rain fed agriculture regions of the state).
© 2014 Grant Thornton India LLP. All rights reserved.MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 20
Figure 2: Process flow in the case of Mono block pumps
CASTING
STAMPING
STATOR ROTOR DIE CASTING CAST IRON
VARNISHIG MACHINING/ IMPELLERS & BODY
GRINDING ROD
MACHINED
BUSHES, IMPELLERS, SHAFT, BODY
BROUGHOUT COMPONENTS
ASSEMBLY Bearings, Seals, Washers, Nuts & bolts,
Capacitors, Flange, Filters etc.
TESTING
DESPATCH
Wet Grinder Home Appliances
Various types of wet grinders are available in the market starting from 2 ltrs capacity and up to 40
ltrs capacity. Higher capacity wet grinders from 3 ltrs onwards are used for commercial purposes
like hotels, marriage halls, commercial batter manufacture, etc. Simple machineries such as lathes,
drilling machines, welding machines are presently used in the production process. Only few of the
units are manufacturing all components in house. Many units are outsourcing the components
from others. Hence, majority units are micro sized. The production process is indicatively
presented below:
© 2014 Grant Thornton India LLP. All rights reserved.MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 21 Figure 3: Process flow in the case of Wet Grinder Home Appliances © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 22 Chapter 3: Cluster Analysis This section elaborates on previous interventions, status of cluster linkages and business operations of cluster enterprises, by way of business processes as well as operations in different functional areas. 3.1. Status of Previous Interventions The UNIDO has been implementing pumps and motors cluster development programme over the last few years. Process upgradation and energy efficiency in foundries is an important area of intervention through provision of related BDS. This program is ongoing and SME foundries are particularly targeted. Also, cluster firms have jointly implemented a project for relocation of many small foundries to the outskirts of Coimbatore and establishment of some common facilities required for pumps, motors and foundry units through evolution of COINDIA, an SPV promoted by SIEMA under the IIUS scheme of Govt. of India (at a project cost of about Rs. 67 crore) in PPP mode. This initiative on redressing some infrastructure gaps was followed by establishment of a small CFC (project cost of less than Rs. 2 crore) for wet grinder manufacturing units comprising of stampings and copper wire drawing equipment. In the context of the latter, the MSME-DI led programme had initiated several soft intervention activities including the MCGFS option through cluster association COWMA, B2B meets in other locations etc. Such interventions led to strengthening of smaller BMOs like COWMA. Today, smaller BMOs have therefore, over time, become proactive BMOs and there is a visible strong linkage between these BMOs and other support institutions. Notably, FIs have had exposure to the MCGFS, which may perhaps be upscaled. Also, BMOs have developed some experience in infrastructure and CFC conception and implementation which may also be upscaled. In summary, with respect to BDS related intervention in the engineering cluster of Coimbatore under the MSE-FDP by the dynamic APITCO focused on areas such as quality, skill upgrading, energy savings measures and technology up gradation. Apparently, over 45 new service providers were introduced to cluster firms. Associations and firms could realize the advantages of their interventions. Evidently, there was facilitation of quality certification like the BIS and BEE for 50 firms. Also, with regard to skill development interventions, upgrading of over 500 semi-skilled persons was facilitated and many of them absorbed in large firms and about 50 trained persons availed of loans for purchasing CNC equipment. Further, energy saving measures were adopted by 25 firms. Energy audits have apparently demonstrated that savings worth nearly Rs. 25 Lakh has been accrued with a payback period of 3-5 years. In addition, about 6 technology upgrading programmes were organized over the project resulting in installation of Divided Blast Technology in units. Improvement in terms of quality and savings of fuel was experienced. Some standardization of components in motors and pumps was also facilitated. 3.2. Status of Cluster Linkages Cluster map is presented in the annexures with core engineering and foundry firms presented. Backward linkages presently are restricted to traders and manufactures in the region while there are a plethora of support institutions such as the EEPC, TANSIDCO/NSIC, DIC and MSME-DI with relatively strong linkages with cluster firms, many of the services of such BDS providers like TANSIDCO, MSME-DI and EEPC are yet to be adequately leveraged to resolve infrastructure © 2014 Grant Thornton India LLP. All rights reserved.
MAPPING NON-FINANCIALGAPS IN THE ENGINEERING CLUSTER OF COIMBATORE 23 common facilities and marketing gaps particularly amongst MSEs. Entrepreneur platforms such as BMOs like the SIEMA; CODESIA, COWMA etc. offer value-added services to members in addition to progressively fostering necessary twinning with institutions. In terms of forward linkages, government institution demand is yet to be realised by smaller pump and motor and foundry units as well as export demand (more) by pump and motor units. Interventions to promote strategic BDS and favourably restructure the cluster may be (also) viewed in terms of upgrading necessary physical industrial infrastructure, value added primary processing and product market development strengthening forward and backward linkages and twinning government instruments, programmes and schemes as to ensure better propagation of BDS services and enhanced competitive orientation of industry. Linkages between Firms There are strong linkages between foundry units and up-stream pumps and motors and other units in the cluster. Also, in various products manufacturing units, a range of supporting components manufacturers provide inputs. Therefore, the cluster is vertically as well as horizontally deep. Many manufacturing enterprises in the cluster have close ties with more dynamic industry associations that is BMOs in the region. These associations are progressively well networked with support institutions such as the NSIC, EEPC, Productivity Council, MSME-DI, SIDBI and banks etc. Active clustering initiatives; “governance” platforms The links in terms of networking between firms to promote more active clustering initiatives and development of BDS market for strategic services prima-facie exists. The cluster has the benefit of relatively strong governance platforms, namely BMOs to facilitate networking between firms and promote more active clustering initiatives. Over the past, the cluster associations have pursued several soft and hard interventions. This has led to cluster firms considering greater levels of co-operative efforts in terms of establishing more common facilities and also upgrading physical infrastructure, along with other market development and other strategic initiatives. 3.3. Analysis of Business Operations This section considers business operations of cluster enterprises, by way of business processes as well as operations in different functional areas. Ammarun Foundries established in 1991 has a turnover of about Rs.100 crore. The enterprise has an investment in plant & machinery (of total) Rs.20 crore. The unit employs around 550 persons. The unit produces ferrous casting in terms of motor pump castings, textile machinery castings, clutch/brake related castings for the automotive industry etc. The enterprise is largely domestic market oriented. The unit enjoys a facility of Rs. 3 crore under the Receivables Financing Scheme of SIDBI and has also enjoyed a TL of Rs. 3crore. The unit has also availed of BDS in terms of ISO 9000; ISO 16000 and the quality related TS 16949. Marketing and Market Development and Demand conditions Each enterprise in the pumps and motor and wet grinder (or other) product line has its own developed marketing channel. Pumps and motor units are also exporting their products to other countries. Many units are supplying directly to showrooms. Others are supplying through agents who are selling through dealers. Many foundry castings and light engineering product manufacturers manufacture as per clients requirement. Major chunk of demand for the castings for the foundry industry is from pump units in Coimbatore and the textile machinery segment. Other customers include the automobile and machine tool units. Large demanding units sometimes provide BDS in terms of inputs vis-à-vis material composition of inputs etc. In the micro enterprises segment, many are job-workers. With regard to the wet grinder home appliance segment cluster firms sell to wholesalers and retailers (many in own brands). The recent state govt. demand for free supply of wet grinders across the state has led to massive growth in cluster and enterprise turnovers over the © 2014 Grant Thornton India LLP. All rights reserved.
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