Coimbatore identified for lean manufacturing programme

Coimbatore is among the 60 clusters identified for the National Programme on Lean Manufacturing for micro, small and medium-scale units.Secretary General of the Federation of Indian Micro and Small and Medium Enterprises (FISME) Anil Bhardwaj told here on Wednesday that the Union Government launched the National Programme in 2009 and issued detailed guidelines about a couple of months ago.

The FISME, which was a member in the steering committee for the programme, in association with the Southern India Engineering Manufacturers’ Association (SIEMA) had recommended that Coimbatore should be among the first 100 clusters for the programme and Coimbatore was among the 60 approved.

Of the approved projects, six were under different stages of implementation.The scheme was designed for mini clusters of 10 to 12 units each.The units should form a special purpose vehicle and identify a consultant to implement the lean manufacturing programme in the cluster for a year.The National Productivity Council was the nodal agency for disbursement of funds to the clusters.

Each cluster would get Rs.10 lakh to Rs. 24 lakh for a year as subsidy and 20 per cent of the project cost would be borne by the units.Mr. Bhardwaj said lean manufacturing was a continuous programme that was accepted globally to reduce cost and improve quality.It was adopted by automobile component manufacturing units and was yet to be implemented widely in industries manufacturing capital goods, engineering products and machinery.

On the need for such practices, he said the Indian micro, small and medium enterprises (MSME) were exposed to phenomenal competition because of trade agreements the country had and lowering of import duties on a number of products.“We have to be cost-wise competitive and improve quality to take advantage of opportunities in the Indian market,” he said.

Jayakumar Ramdass, president of the SIEMA, said it organised a meeting on Wednesday for its members on the scheme to create awareness on lean manufacturing and about the opportunities available under the programme for the MSMEs here.The association proposed a special purpose vehicle to implement lean manufacturing programme for a group of units here.

Industrial estates for smaller units sought

The Coimbatore Tirupur District Micro and Cottage Entrepreneurs’ Association has appealed to the Coimbatore Corporation to relax the punitive action taken on micro and cottage industries based on complaints from residents of a locality against the units.Association president S. Ravikumar has said in a release that recently the Corporation asked a few units to shift operations from a residential area as there were complaints against the establishments.

The Corporation should give time to the units move out as the Government had announced the establishment of industrial estates for micro and cottage enterprises.Most of these complaints were regarding noise pollution.

Machines

A large number of micro and cottage industries here had just one or two machines and were functioning in residential areas. The workers of these units were also residing in nearby areas.Representatives of the association had met the Deputy Chief Minister and Rural Industries Minister and appealed to them to expedite the process of setting up industrial estates for the smaller units.

In the wake of complaints, the officials should form a team with industrial representatives too and study the complaint before initiating action on the units, said M. Loganathan, secretary of the association.

BEML opens its Vendor Dev Office !!

BEML, formerly known as Bharat Earth Movers Limited, has opened a vendor development and sourcing office here.

BEML is setting up a green field project for defence equipment and rail coaches at Kanjikode in Palakkad district of Kerala and Coimbatore is a potential area to supply components, mainly sheet metal fabrication, castings and forgings, according to the company’s Deputy General Manager for Corporate Purchase H.S. Ranganath.Mr. Ranganath said at a buyer-seller meeting organised here on Friday by the Confederation of Indian Industry that the company’s procurement target through outsourcing was over Rs. 1,080 crore for 2010-2011 and Rs. 900 crore for 2009-2010. Of the Rs. 580 crore outsourcing in 2008-2009, nearly 12 per cent was from Coimbatore region.

The need for an office here was felt to improve communication with the vendors.The office here currently has three engineers and the strength would be increased in the coming months.BEML certainly required more vendors and the units that would be able to the meet its requirements had opportunities, he said.H.S. Prakash, Chief General Manager – rail coach division, said that the site was getting ready at the Kanjikode facility and the unit would be commissioned by March next year.The unit would manufacture defence equipment and aggregates for rail and metro cars.

With Kanjikode only about 40 km away, Coimbatore could make use of the advantage of location and tap the opportunities in outsourcing.

L & T Opens its casting unit !!

Chairman and Managing Director of Larsen and Toubro (L & T) A.M. Naik inaugurated a casting manufacturing unit here on Wednesday. The capacity of the Rs. 120-crore plant is 30,000 tonnes a year.

Full capacity

Mr. Naik told presspersons after the inaugural that the foundry would take about two years to reach full capacity production. It would cater to the casting needs of the wind turbine industry.The Coimbatore campus of L & T focused on precision manufacturing and light engineering products.The company’s investment in its facilities here so far was about Rs. 320 crore and direct employment was nearly 500. The company planned to increase this to about 3,000 in a decade.

L & T’s investment commitment in the State in roads, ports and shipyard was about Rs. 4,000 crore. This was expected to go up to Rs. 5,000 crore next year. “Tamil Nadu is extremely important for L & T,” he said.

Total order

Mr. Naik also said that it would start construction of power generation projects (totalling about 7,000 MW) in a couple of years in different parts of the country.The total order book for the company was for nearly Rs. 90,000 crore now.Speaking at the inaugural, Mr. Naik said the company saw a lot of opportunities in the State.It worked with the objective of national building, having a cleaner planet and corporate social responsibility.

State-of-the-art

Senior Vice-President S. Raghavan said that the foundry here was established in less than 18 months. It had unique features such as 98 per cent sand reclamation and high quality sand mixers.According to a release from the company, the foundry was located on a 15-acre plot and incorporated state-of-the-art pollution control, fire control and environment conservation measures. The foundry was the sixth facility of L&T in Coimbatore.

Kannan Departmental Stores on expansion

As the texcity is warming up to the opening of two big malls - Fun Republic and Brookfield Plaza by early 2010, the home grown leading retail chain, Shri Kannan Departmental Stores is quietly expanding its network in the Kongu region. It also plans to enter Chennai after a year.

The chain, which clocked a turnover of Rs 290 in 2008-09, recently ventured out of the region to open its first store in Madurai. Now, it has 25 stores, mostly in Coimbatore and Erode and the remaining in smaller cities including Salem, Karur and Tirupur.After Madurai, the next stop for Shri Kannan will be Tiruchi. "We are on an expansion spree and will open one new store every month," Shri Kannan Departmental Stores chairman T Thanushgaran told ET. He said, the retail chain would reach Chennai by 2011 and is planning not less than 20 stores in the state capital.

He said currently the company is reorganising its business and accounting structure. "Like big retailers, we also want to go public and turn this company into a top player in Indian retail market," he added.With big plans on hand, , Mr Thanushgaran, who started the first store in Erode in 1985, is banking on his marketing strategy to grow the retail business. "Costing matters, but when you do bulk business even a small margin will bring profit," he said.

Right from groceries, cosmetics, electronics, stationery items, furniture, clothing to medicines, Shri Kannan is a one-stop-shop for customers. It also sells seasonal products like fire-crackers.
"Apart from opening new stores, we keep increasing our product portfolio. We also manufacture products in-house and sell under our own brand – Shri Kannan," he said. The company is targeting a turnover of Rs 360 crore and Rs 400 crore this fiscal.

The company has a large R&D team to scout for innovative products and also cost-effective sources for direct purchase of different goods. The chain also has its distribution centres at strategic locations. "The business will be viable only when there is easy facilitation of goods transport, because the stores need to be kept well-stocked," he said.Shri Kannan recently ventured into bulk retail under which huge discounts are offered for those buying in large quantities. It opened a wholesaleBazaar in Singanallur to cater to institutional clients like educational institutions, hospitals, offices and small businesses.

Chamber seeks removal of duty for fibre imports

The Indian Chamber of Commerce and Industry, Coimbatore, has appealed to the Union Government to remove the counter vailing duty and special additional duty for viscose and polyester imports.In a pre-budget memorandum submitted to the Centre, the chamber president Mahendra Ramdas has said that the Customs Duty on all capital goods, spares and accessories for the textile industry should be uniform at five per cent. Benefits under the Technology Upgradation Fund (TUF) scheme for textile units should be available to the units every quarter within a month from the completion of the quarter.

The Central Sales Tax purchases should be eligible for Value Added Tax benefits to reduce the cost for the manufacturers. Maharashtra, Gujarat and Andhra Pradesh levied VAT when cotton was removed from the State to another. However, there was no tax for depot transfer. The tax should not be levied for cotton transfer from the producing State to others.The Minimum Alternate Tax on the book profit should be 10 per cent and not 15 per cent.

In the new Direct Tax Code Bill, the proposal to charge two per cent tax on gross assets would affect companies with large asset base and do not have sufficient profits. The depreciation for plant and machinery for micro and small units should be increased to 30 per cent as these units should stay competitive in the global market. A scheme similar to the TUF for the textile industry should be introduced for the engineering sector.

The Centre should extend subsidies for roof top solar (photo voltaic) installations, solar energy use in processing units, energy management software and thermal infrared scanners used to detect energy waste, he said.

Tata launches Photon Plus in Coimbatore

Tata Tele Services Limited on Friday launched Photon Plus for providing mobile broadband services with speed up to 3.1 Mbps. The launch was marked by G. Ramprasad, Chief Executive Officer of Tata Tele Services Limited, Tamil Nadu, handing over the first device to ace driver Narain Karthikeyan in the presence of Sunil Pillai, Chief Operating Officer – Tamil Nadu, Tata Tele Services Limited at a function held in the city.

Photon Plus services could be accessed using two devices – Router for SMEs and Business Enterprises which are configured with an in-built modem and has wi-fi capabailities and USB model for individual users.

Mr. Ramprasad said that the device is up to 20 times faster than the existing mobile wireless technology. The device is compatible to both desk top and lap top computers and one has to just plug and play. The activation could be done across the counter. The services are available in over 50 cities and towns across the country and by the turn of March 2010, TTSL plans to have the service commissioned in over 100 towns.

TTSL was confident of bagging a substantial market in Coimbatore, Mr. Ramprasad said. Coimbatore accounted for high net worth individuals and the city was an extremely potential market in the eyes of TTSL. Time-based packages are available from a lowest entry of Rs. 250, he said.

LMW sees increase in capacity utilisation

The capacity utilisation of textile machinery manufacturing major Lakshmi Machine Works (LMW) has increased from about 35 per cent during the previous quarter to 60 per cent now.

R. Rajendran, Chief Financial Officer of LMW, told on Wednesday that with the textile industry showing signs of revival “we hope there is scope for further improvement this year.”

The market started improving from August and the textile industry was registering good performance for the last two months.Hence, textile companies were going in for marginal expansions and some new projects too.“We have been able to improve sales in the second quarter and hope it will continue for the rest of the financial year,” he said.

The company had also installed two machines for trial run at the customers’ site in China through its 100 per cent owned subsidiary, he added.Even during the economic slowdown, China’a annual requirement was about four million spindles.By having a presence in China, the company hoped to capture a share in the Chinese market, he said.

Premier mills fory into luxary bed market

Premier Fine Linens , part of Coimbatore-based $200 million Premier mills group, plans to tap the domestic market for its luxury bedlinens. It has been catering to the global market, supplying to leading American and European brands like Calvin Klein, Westpoint Home and Sferra for the last 12 years.The company, which produces fashionable bed linens including duvet covers, pillow shams, blankets, coverlets, quilts, table linens and cushions, is planning to sell them under its own brand name Premier Fine Linens in India.

"We were predominantly exporting to the US (80%) and European markets. After seeing increasing demand for hi-end bed-linens in India, we consciously decided to launch our products here too," Premier Fine Linens MD Shanthi Srinivasan told . Premier will test the Indian waters, launching its brand in south by February 2010 and go national by June 2010.Though the size of the domestic furnishings market is not officially available, Ms Shanthi said, the initial surveys in the southern states have put the market size of branded luxury bed-linens at Rs 60 crore. Although the figure looks miniscule, nearly 65% sales of bed linens in the south are in the unbranded segment, she added.

"There are only a few branded players like Bombay Dyeing, Wellspun, Hot Wheels and Portico in India. So, we have decided to make a domestic foray under our own brand name," she said.
A vertically integrated company, Premier Fine Linens has its weaving and stitching units in Pollachi and processing house in Perundurai. At present, the stitching unit has a capacity to produce 1 lakh sheets per month. To cater to the local markets, it is looking to increase its capacity by 20%.

The company is initially planning to tap mid-segment and upper segment markets in India. "We are also looking to offer exclusive range of products (high-end bed linens) in boutique stores in Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad," Ms Shanthi added. It has also tied up with CGH Earth Hotels and Hyatt in India and is slowly looking to increase its presence in the hospitality segment too.Premier reported a turnover of Rs 75 crore last fiscal. It is targeting the Rs 100-crore mark this year. Like other textile exporters, the company too saw a drop in exports orders from January 2009 in the wake of global slowdown.

"Though the market picked up by July and August this year, prices are still lower than last year’s. But we are running to full capacity," Ms Shanthi said. The company is also mulling a foray into Australia next month.

India tops in BPO list !

India has retained its top position on the advisory firm Global Services-Tholons ranking of the world's top outsourcing nations.Six cities -- Bangalore, Delhi NCR, Mumbai, Chennai, Hyderabad and Pune -- are the favourite offshore destinations for global outsourcers, according to the fourth Global Services-Tholons Top 50 emerging outsourcing destinations survey.

India topped the list with revenues of $40 billion from export of information technology-business process outsourcing (IT-BPO) services in 2008. Its closest rival Philippines increased outsourcing revenues by 25% to $6 billion in the same year. The two nations were followed by Ireland, China and Brazil.

According to the study, India also grabbed the top slot in terms of foreign direct investment (FDI) inflows into the country. It had the highest FDI in the IT-BPO sector in 2008 at $46 billion, a jump of 46% from the previous year, even as global FDI flows decreased from $1.9 trillion to $1.7 trillion and several developing economies struggled to acquire investments from client nations.

Avinash Vashistha, CEO of Tholons, said it is not just cost arbitrage that is bringing in funds into the country "For a CIO (chief information officer) today, finding a centre of excellence is more than just to lower cost. It must consider location, risk mitigation for business, cultural affinity and scalability of the skilled workforce," he said."The service providers need to think through their offerings so as to differentiate as the competitive advantage is rapidly vanishing due to a cut-throat competition and market saturation."

Besides the top six Indian cities, the other cities that have been featured in Global Services-Tholons' survey are Chandigarh, Kolkata, Coimbatore, Jaipur, Bhubaneswar, Thiruvananthapuram. They have made to the list of next 60 outsourcing destinations.

Ramco organises programme to explain its products

Ramco organised a programme here recently to explain about its products in the manufacturing and HCM space.Its HCM solution will give companies an edge to attract and retain the best workforce.It is used in over 700 customer locations in 34 countries.

It will help in employee engagement, development, payroll equity, human resource and logistical process automation.The manufacturing solutions will help companies improve manufacturing efficiency, differentiate products, keep up with the regulatory mandates, reduce operational costs and create new opportunities.

Solutions

The solutions covered the entire manufacturing processes, including planning, scheduling, and execution with corresponding integration with costing, procurement, inventory, and demand fulfilment.

Skill development programme

Micro, Small and Medium Enterprises Development Institute will organise a two-week skill development programme for gold appraisers. The programme will be held at the MSME Office, 386, Patel Road, Ramnagar, Coimbatore, from October 29 to November 11. The objective of the programme is to train educated unemployed youth so that they get employment opportunities in banks or they can start their unit. For details, contact R. Vijayakumar at 0422 2230426, 2233956, 9442241361.

L&T bags hospital building order at cbe !

L&T’s Buildings & Factories Operating Company - a part of its Construction Division - has bagged new orders aggregating Rs15.13bn during the second quarter of the year 2009-10 for the construction of high rise tower, luxury hotel, hospital & factory building projects.L&T has secured Rs6.21bn contract from M/s D B Hospitality Pvt Ltd for the construction of India Tower at Charni road, Mumbai.

It has further secured an order from ITC Group for the construction of ITC Sonar Hotel at Kolkata amounting Rs2.38bn.L&T has also secured orders worth Rs3.67bn from NBCC for the construction of Hospital building at Coimbatore and for up gradation of six hospitals at Haryana.

In the factories segment, new orders to the tune of Rs2.87bn has been bagged from Arshiya International Ltd for the construction of India's 1st FreeTrade Warehousing Zone at Sai village at Panvel near Mumbai and other clients.

These orders further enhance the order book of the company which had secured major design & build orders in Airports, IT Parks and commercial space and L&T has a significant market share in these segments.

NEPC sets up a SEZ at Palladam !!

Natural Energy Processing Company (NEPC) India Ltd is planning to set up a special economic zone (SEZ) at Palladam near Coimbatore with an investment of around Rs 2,000 crore. The company is also talking to private equity investors to fund the project.

Ravi Prakash Khemka, chairman NEPC India Ltd said that the company is planning to set up solar and Photo Voltaic plant in the SEZ, to which the construction is expected commence from January 2009. Total investment would be around Rs 2,000 crore.

All the approvals from the state and central governments are being obtained. The proposed investment will be funded through debt and equity. “We are talking to a few private equity investors to fund the project,” said Khemka.

While NEPC’s land requirement would be only 25 acre for setting up the facility, the remaining would be given to other non-conventional energy players, added Khemka. Once the project takes shape, the company is expecting Rs 4,000-5,000 crore from investors and would provide employment to 5,000-6,000 people both directly and indirectly. Almost 360 days solar energy is available in the country, he added, considering which the company has embarked into manufacturing Solar Dual Power System, UPS.

Top Pricol official injured in an Attack

A top HR official of Pricol Ltd, Periyanaickenpalayam sustained severe head injuries in an attack on Monday by a section of workers over the dismissal of 42 employees of one of its units. Roy J George, vice-president (Human Resources), was very critical and on ventilator after a major brain surgery, inquiries with a private hospital here revealed.

Apart from the police already posted at the factory, the Coimbatore Rural Police deployed huge reinforcements in and around all the units of the company that manufactures automobile components.The company on Monday issued dismissal orders to the employees of its unit at Kuniamuthur in view of the low productivity. The management had already given several warnings and show cause notices.

Irked by the orders, some of the striking employees were said to have attacked Mr. George and three other staff members with iron rods and sticks at the factory’s unit at Periyanaickenplayam.In a complaint lodged with the police, the management alleged that “outsiders” had instigated the workers.

Superintendent of Police N. Kannan said six persons, believed to be part of the group that involved in the attack, were taken into custody. Efforts were on to secure the others. Mr. Kannan said all relevant sections relating to unlawful assembly, causing grievous hurt, attempt to murder and damage to properties would be invoked against the assailants.

Swiss delegation explores business opportunities

Information Technology, Intellectual Property Rights and industrial processes are some of the main areas for Indian companies to collaborate with those in Switzerland, according to Marc Rudolf, Director India of Greater Zurich Area.Mr. Rudolf told here on Monday that the Indian IT companies could work directly with some of the large Swiss players.

About a dozen representatives of different cantons in Switzerland visited Coimbatore on Monday after holding meetings in Hyderabad, Bangalore and Chennai. They would visit Mumbai on Tuesday.The objective of the visits was to promote various locations in Switzerland for Indian investment and to look at business opportunities in India for the Swiss companies. Coimbatore too had some IT companies. Mr. Rudolf said that in Greater Zurich, which encompasses seven cantons, financial sector was huge in terms of employment and value creation. Some of the other major sectors were machine and machine tool, research and development, pharmaceutical and Intellectual Property Rights. Switzerland’s strengths were in engineering and technology and providing customer-specific solutions.

Swiss companies

It still had manufacturing and there was pressure on the companies to be cost competitive and to be closer to the emerging markets. So, industrialised processes could be outsourced to cities such as Coimbatore.Some of the options tapped by the Swiss companies now were Eastern Europe and China. Depending on the standard of competency of the Coimbatore units, industrial processes could be outsourced here.

Investments

Arvind Tilak, Principal Representative India of Switzerland Trade and Investment Promotion Organisation, said that outsourcing potential was high with the Swiss companies. Investments were increasing on both sides. However, it was relatively small to what it could be. Another area of high potential for collaboration was Intellectual Property Rights. Switzerland had multi-cultural hubs and these could be used by the Indian companies to expand to other markets.

Move to derecognise Coimbatore Stock Exchange stayed by HC

cuttling a move to derecognise the Coimbatore Stock Exchange and close its operations, the Madras HC has stayed a resolution passed to that effect. Justice P Jyothimani granted interim injunction restraining the Securities and Exchange Board of India (SEBI) from derecognising the Coimbatore Stock Exchange Limited, on a petition filed by Ellen Venkatesalu Securities (P) Limited, Coimbatore.

According to the petitioner, the SEBI framed guidelines in December 29, 2008 to permit firms seeking derecognition as recognised stock exchange so as to enable them to carry on with their business and not function as a stock exchange. However, before the issue could be notified officially, the CSE convened a meeting on December 31, 2008, and decided to get de-recognised.

‘Made in Coimbatore’ expo in Mangalore

Entrepreneur Club, Coimbatore (E-Club) will organise a ‘Made in Coimbatore’ industrial exhibition in Mangalore from November 6 to 9.N.S. Kumar, chairman of the exhibition, told presspersons here on Wednesday that about 300 participants were expected from Coimbatore. The district had nearly 50,000 registered small-scale industries and an equal number of unregistered units. These units manufactured a wide range of industrial products. The E-club members here manufactured over 300 kinds of products.

The first edition of ‘Made in India’ was held here last year and the participating units were able to achieve a total business of about Rs. 5 crore.It was decided to have a similar event this year in Mangalore to give the units exposure to a different market. “We expect to achieve business for nearly Rs. 20 crore during the four days,” he said. Mangalore was close to a number of public sector industries coming up on the Kerala border.Visitors were expected from micro, small and large-scale units in Mangalore region, including Goa.

The organisers planned to provide common transportation facilities to take the exhibits to Mangalore.

The State Government was also expected to provide subsidy to the participants as it was an initiative to develop a new market.The event was supported by the Micro, Small and Medium Enterprises Development Institute, Lions Club of Coimbatore Gems and Kanara Small Industries Association. Mr. Kumar said banks and some of the Government agencies would support those buying machinery at the exhibition.E-club members would get a discount in the participation fee. Eight seminars would be organised on the four days.

Dresser establishes EOU in Coimbatore

The United States-based Dresser Flow Technologies has invested roughly 2.5 million dollars at the Export Oriented Unit (EOU) inaugurated here on Wednesday.After inaugurating the facility, Barry Glickman, president of the Dresser Flow Technologies Segment, told that the company started operations here in November 1999 and had so far invested approximately seven million dollars.

The Export Oriented Unit was an opportunity for the company to increase capacity in India and its export facility here. India, China and Mexico were the three critical locations for Dresser Flow Technologies. About 10 per cent of the company’s total sales came from supply of products delivered from the facilities in these three countries. The company would be expanding production facilities in these countries.

This would include moving production from some other locations apart from fresh investments.
With the global economic recession, the valve market had slowed, but not dramatically. This was a good time to establish capacities to benefit in future, he said.In Coimbatore, it had access to high quality work force, supply chain that was cost effective and engineering capabilities. The total number of people employed by the company here was 200 and the number of vendors was 50.

In India, the company currently had manufacturing facilities only in Coimbatore.On exploring other locations for production facilities, he said, “At this moment, Coimbatore is the location.”
About 70 per cent of the production here was for exports now and 30 per cent for the domestic market. The company planned to at least double the capacity in five years.

The Indian economy was growing and the country had a critical mass. So the supply to the domestic market should go up. Power sector would drive growth here.Mr. Glickman added that the Coimbatore facility manufactured for two brands – Dresser Masoneilan and Dresser Consolidated.

Both the brands were owned by Dresser and the facility was also wholly-owned by Dresser. The company had a wide spectrum of products in the control and pressure release valve segments, he said.David M. Vernon, vice-president, Global Supply Chain Management of the Dresser Flow Technologies, M. Krishna, Managing Director of Dresser Valve India and Vijay Kaul, vice-president – sales and marketing of the company were also present at the inaugural.

UNIDO launching new cluster programme !

Within a broader cooperation programme, the United Nations Industrial Development Organisation (UNIDO) is launching new industrial projects totaling nearly US $ 9 million to benefit industry in India. Agreements on this were signed earlier this month (on 7 August 2009) in Vienna by the Secretary of the Department of Industrial Policy and Promotion (DIPP), Shri Ajay Shankar and UNIDO Director-General Dr. Kandeh K. Yumkella.

DIPP has conceptualized an Integrated Cluster Development Programme (ICDP) wherein clusters which received infrastructure interventions under its prestigious Industrial Infrastructure Upgradation Scheme (IIUS) were targeted for Technological Interventions through Technical Cooperation services of UNIDO. The clusters selected are Auto-Component at Pithampura (Madhya Pradesh), Chennai (Tamil Nadu) and Pune (Maharashtra); Machine Tools at Bangalore (Karnataka); Foundry at Belgaum (Karnataka) and Coimbatore (Tamil Nadu); Chemicals at Ankhleswar (Gujarat) and Leather at Kanpur (Utter Pradesh).

A US $ 5.9 million Integrated Cluster Development Programme for India will focus on technology, management, skill development and the environment. It will be implemented by 2014 at sites in Pithampura, Chennai, Pune, Ankhleswar, Kanpur and New Delhi, matching the specific needs of each industrial location.

The Programme will offer turnkey solutions to each of the identified clusters to help them address technology, quality or environmental constraints, encompassing a comprehensive package of services – ranging from energy efficiency and water conservation to cleaner production and lean manufacturing. “Lowering the consumption of energy, raw materials and water in industry; reducing the waste and pollution intensity of enterprises; and improving the productivity of industries, leading to enhanced competitiveness – these are the essential underpinnings of the Integrated Cluster Development Programme. Through this flagship programme, the project will avail UNIDO’s expertise in the key areas to achieve the vision of a Green Industry”.

“The 2009-2014 Integrated Cluster Development Programme for India will help tackle poverty issues and contribute to environmental sustainability”. The cluster programme combines projects that will help improve resource productivity and environmental performance of small and medium enterprises (SMEs) in particular in automotive components, leather and chemical sectors. They will focus on enhanced market access for small and medium sized automotive component manufacturers in Indian auto-clusters. They will also enable local leather-based industry to sustain conversion of locally available raw hides and skins into exportable products either directly as genuine leather or as derived finished products – for example, footwear.

The projects will provide employment and income opportunities without jeopardizing the livelihood of the human settlements through environmental degradation, and without threatening the rapidly depleting water sources and agricultural land. A separate project worth US $ 3 million, a part of ICDP, will deal with upgrading India’s machine tools industry.

According to UNIDO “The machine tool industry is the backbone of India’s engineering sector. It has come a long way, but now needs to be further strengthened to cost-effectively produce quality machine tools through technological upgrade and market development. The Indian industry has an abundance of skilled manpower, basic raw materials, and a rising class of technical entrepreneurs. By addressing productivity, quality, reliability, service and technology, the performance of the Indian machine tool enterprises can be greatly improved.

The machine tool industry project will be implemented by the UNIDO-International Centre for Advancement of Manufacturing Technology (ICAMT) within the framework of the ongoing Country Programme of Cooperation between India and UNIDO for 2008-2012.

Project relating to Foundry clusters at Belgaum and Coimbatore will be launched shortly. UNIDO is the only specialized agency for industrial development in the UN system and has been working with governments, business associations and private companies to solve industrial problems for more than 40 years.