MSME Cluster Study: 3000 MSMEs, 11 Clusters, 4 States

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k-solutions/knowledge-bank/products/indian-gems-and-jewellery-market-future-prospects-2011SMEs are often considered the unsung heroes of our economy. But often we find that the eco-system they are found operating in are often inhospitable when it comes to their growth. Milagrow undertook this cluster study to understand how MSME's operate in their ecosystems, understand their present scenario, where are they lacking, who can help them and what is the way forward. The study aims to answer these and many more question so as to give a better understanding of the MSME Ecosystem in India enabling us to understand and serve them better.

The immense interest in doing cluster studies is fuelled by the fact that the SMEs in these clusters play a central role in many modern technologies and in natural phenomena. The potential of clusters as a means of optimization of existing resources and technologies, developing principally new technological processes, materials, and devices is truly unparalleled. To make this potential a reality a comprehensive understanding of the properties of clusters as a function of their material(s), size, structure and the problems faced by them. 

Milagrow undertook this study with 3000 MSMEs across 11 clusters in 4 States. The objective of the study was to do comprehensive mapping of MSMEs in the targeted cluster in order to develop a profile by understanding its present scenario, studying the challenges & opportunities, devise recommendations and the road ahead for the SMEs operating in such clusters and get an accurate idea of the Indian SME Ecosystem and serve them better.

• Outside Metros the benefits of the initiatives of Apex industry chambers is not visible. Almost 100% firms in Ludhiana and Firozabad are either unaware or claim having not benefited from the apex industry chambers.

• Almost all MSMEs have to resort to giving credit to their customers. During recessionary times, the credit given to customers extends beyond the credit period they receive from suppliers. With the slowdown of demand and the credit crunch MSMEs are the most vulnerable. Strong Implementation of the Delayed Payment protection in the MSME Act 2006 is vital to the health of the MSME sector. 

• Getting skilled labour is a major issue and retaining them is a tougher task. 76 % of the firms in the Ludhiana Hosiery cluster reported an attrition rate of over 25%.

• Non-existence of quality certification in certain clusters affects competitiveness and sustenance. For example, in the Ludhiana Hosiery cluster and the Firozabad Glass Cluster most of the firms had not acquired any quality certifications. Even in the NCR IT Cluster, 78% of the firms did not have any quality certification. 

•  Punjab Clusters : Ludhiana
  • Auto Components Cluster
  • Bicycle Cluster
  • Hosiery Cluster

• Uttar Pradesh Clusters
  • Firozabad Glass Cluster
  • Moradabad Brass Cluster

• NCR Clusters (includes regions from Delhi, Haryana and Uttar Pradesh)
  • IT Software Cluster
  • Healthcare Cluster
  • Tourism Cluster
  • IT Hardware Cluster
  • Niche Reatailing Cluster
  • Restaurant Cluster

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