The Hindu : Business : Efforts on to form cluster of dies and tools units

Online edition of India's National Newspaper
Wednesday, Jul 12, 2006

Business

Business

Efforts on to form cluster of dies and tools units

Staff Reporter

Proposed cluster will boost employment

THRISSUR: In an innovative initiative, 32-odd small-scale entrepreneurs in the district have decided to set up a cluster of die and tool industries to augment the pace of the much-needed modernisation in this sector.

The president of the Kerala State Small Industries Association, K.V. Balakrishnan told The Hindu here that the cluster would be tentatively located at Aranattukara near here. Government land available there will be purchased for this.

Small Industries Development Bank of India (SIDBI), the District Industries Centre (DIC) of the State Industries Department and the Small Industries Service Institute (SISI) of the Central Industries Department have assured their support to the new project.

Deputy General Manager (DGM), SIDBI, K. Sathianandan said his organisation was willing to extend loans to the project if they complete the formalities of forming the cluster. "For this, they should first of all form a special purpose vehicle (SPV) with the support of the State Government.

The promoters should also contribute their share to the project. We would be able to give the remaining amount as loan," Mr. Sathianandan said. DIC General Manager M.S. Sadanandan said his organisation would be able to support the project by working as a cluster development agent.

Former DGM of the SIDBI, Babu, who has volunteered to act as informal consultant for the project, said the cluster would enable the units engaged in the production of die and tools to sell quality products at competitive rates through technology upgradation.

Technology upgradation is essential for the die and tool industry to survive in the extremely competitive market. But technology upgradation is an expensive proposition in this sector. Some of the systems like CNC machines, which are required will cost about Rs.70 to Rs.80 lakhs.

It will be difficult for an individual entrepreneur in the small-scale sector to make such huge investments. So a cluster approach can be of great help in pooling the resources and optimally utilising the available resources, Mr. Babu said.

Mr. Balakrishnan said the cluster would have a common facility centre comprising of tool rooms and other systems. Individual entrepreneurs can use those facilities by paying a nominal fee.

Emphasising that there was tremendous scope for the units engaged in the production of die and tool, Mr. Balakrishnan said sectors like automobile, gold ornament manufacturing, diamond cutting and furniture making will want their products.

Defence units also require such dies and tools. Right now, much of the industries in this sector are working in Jalandhar and Coimbatore.

Thrissur has a rich heritage of die and mould production. But most of the engineering industries were weakened by stiff competition and lack of technology upgradation.

The proposed cluster will be able to drastically boost employment opportunities and revitalise the engineering industrial sector in Thrissur by relying on the high quality skills of the workers here, Mr. Balakrishnan said.

Printer friendly page
Send this article to Friends by E-Mail

Business