An emerging new economic order coupled with unbounded trade limits, imbalances in the technological advancement among the nations and aggressive market strategy all contribute to the serious challenges experienced by small and medium entrepreneurs particularly the small-scale sector. On this background, cluster development attracts much importance.
This cluster approach targets for cost effective production strategy, saving in raw material procurement by following mass purchase policies, technology innovations, product diversification, exploration of new markets, establishments of common facility centre, etc.
Cluster approach has been quite successful in the National and International field for developing small-scale industries. Cluster development, is therefore reducing SMEs isolation by strengthening linkages among all actors of the cluster (SMEs, Larger enterprises, supporting institutions) assisted in order to co-ordinate their actions and pool their resources for a common development goal.
MSME Development Institute, Bangalore has started cluster development activities for groups of small-scale industries by providing technical and market oriented support for homogeneous groups.
There are few clusters of Karnataka, which have been approved by the Development Commissioner, Small Scale Industries, Govt. of India for their development i.e. Foundry cluster at Belgaum, Ready made garment at Bangalore, Leather footwear at Mysore, Agarbatti at Bangalore,Lacquerware Wooden Toy Cluster at Channapatna. UNIDO had also done work for the development of clusters like Jeans cluster at Bellary, and Machine tools at Bangalore. Other clusters which are existing in the state of Karnataka and can be taken up for development are silk industries, leather products, Coir and coir products, Electronics, Ready Made Industries, screen printing, Power loom, Cotton Handloom, Rice mill etc. The work on these clusters are yet to be started.
Developing cluster and working for a common goal in a consortium would benefit the industries and strengthen the marketing position of its products. The proposals for the development of two clusters namely leather and agarbathi are to be taken up by the dept. of industries and commerce, Govt. of Karnataka.
MSME-DI Bangalore, under cluster approach for the Ready made garment units, organised the following developmental activities during the financial year i.e. 2006-07 :
In plant studies of the industries will also be undertaken for cost reduction in the manufacturing processes or any other areas as per the needs of the industries. Individual Garment Units or industrial associations may approach for the assistance under this program. It is also planned to set up a skill development training cell for training skilled labour to for the garment industries with sophisticated industrial machines at MSME DI Bangalore. For further details contact:
Sh. R Gopinath Rao
Assistant Director (Cluster Development), MSME Development Institute,
Phone: 080-23151581-82-83 , Fax: 080-23144506
Email : firstname.lastname@example.org