Light engineering cluster OF parwanoo
Introduction
Parwanoo Light Engineering Industrial Cluster is located in Himanchal Pradesh on Kalka – Shimla highway on foothills of Shimla. It is on Haryana border. 2 K.M. from Kalka and 35 K.M. from Chandigarh. Govt. of Himanchal Pradesh way back in 1970s offered incentives to attract entrepreneur to set up Industries in Parwanoo, which was declared backward area at that time. This decision was taken keeping in view to economic upliftment of hilly state by providing employment to local and bring Industrial Culture in the state. There are about 300 small units and 32 large and medium units in the cluster. There are more than 12500 people employed in the cluster of which about 20 % are women.
About 60% of total units of the cluster are of Light Engineering. These units are working as ancillary units for large industries like Purolator, Gabriel, Eicher etc. Supplying semi – finished / finished parts, sub assembler as per requirement of their principles. Tiny units are mostly engaged in sub contract work are having 4-5 workers with a capital investment of 4-5 lacs, and do not have sufficient technical skill to update their technologies to match the competition. Operations involved are presswork, fabrication, metal finishing, heat treatment, forging etc.
1. Electronic & Computers: Manufacturing Computer parts, assembling of Monitor etc. These units are of SSI, Medium industries. Units are of high turnover nature and employing 60% female employees..
Market Potential of the Products:
Most of the products from Parwanoo cluster are market in other states of India and exported. Particularly, export market of computer monitors, auto parts etc. is very high. The major companies situated in cluster are Eicher Demm is manufacturing sub assemblies for their tractor units, LCV, Purolator, Gabriel, manufacturer auto parts which are of high standard products having substantial demand in local and international market.
Most of the processes at the cluster level are non-polluting except electroplating work process units. About 150 units are having subcontracting relationship with large firms like HCL, Vintron etc.
Support Organisations
There is an association of cluster named as ‘Parwanoo Industrial Associations. mainly to help members on routine matters.
General Constraints faced by Industries:
1. There is Scarcity of water being hilly area and Cluster is depending on corporation water, which is not sufficient.
2. Cluster is not getting regular power supply and own Power generators add to the cost of the products.
3. There is no Housing complex near to the Parwanoo cluster and employees residing in far-flung villages.
4. Cost of transportation is quite high.
5. Non presence of Financial Institution / office in the cluster.
6. Frequent changes in Govt. policies leads to instability in the ranks of industries.
7. In coming and out going goods are subject to Tax which add to products cost produced in the cluster.
8. Technologies in Computer / Electronic changing fast and local units are unable to match the International competition. There is no Govt. information support available in the cluster.
9. Technical Education Development programmes as per local requirement is not available.
Performance of the cluster
The total production of the cluster is about Rs 10000 millions
Due to overall recession in the market cluster is facing financial / marketing problem. Technology development awareness programme is essential for SSI & Tiny units and must be motivated to adopt latest technology developed to match the Internal and International market.
Status report of cluster is enclosed as Appendix attached.
light engineering industrial goods cluster parwanoo industrial estate (himanchal Pradesh)
criterion
/characteristic
(A) Importance of cluster(i) Existing contribution to the local economy
(i.a.) Firm analysis
Number of firms / 3.9
Major Products / Light Engg, Electronic & Computer, Pharmaceuticals, PVC, Plastic & Auto Parts.
Turnover range / Rs. 900 - 1100 Crores (Estimate)
Investment range / Rs. 3 lacks – 10 crores (Approx.)
Nature of firms / Manufacturer
Production relationship / Vertical as well as Horizontal structure
(i.b) Employment analysis
Employment / 12,500
Source of labour / From near by villages neighboring state & Bihar
Average wage / Skilled Rs. 120/- & Unskilled Rs. 70/-
(i.c) Export / No direct exports only large units doing direct exports
(ii) Location of cluster
Urban/Semi-urban/Rural / Semi-urban
Geographic spread / Cluster is located on Shimla High – way, within 4 km radius 3 km away from Kalka& 35 km from Chandigarh.
(iii) Outreach
Other clusters of similar nature (replicability) / Similar SSI & Medium Units exist in Haryana & Punjab
Linkages with other industry and trade / SSI Units have linkage with large industries working as ancillary units.
(iv) Socio-Environment consideration
Environmental problem / Not much
Safety standards / Satisfactory
Woman employment / 15 – 20% of total employment in the clusters
(B) Viability of clusters
Demand condition / Local not substentional demand but quite reasonable out side the state and in international market.
Net birth rate / Negative
Producers of strategic items / Yes, assembling computer monitors, electronic parts, watch components & auto parts.
Major buyers / Eicher, Purolator & Gabriel
Production cycle / 3 to 10 days
© Promoteability
Aspiration level / During the survey manufacturer explained their difficulties and expecting firm Got. Polices benefits to industries for revival due to overall recession in the market.
Attitude / Positive attitude.
Industry association / 130 Units are member of Parwanoo Industries Association, Large & Medium industries are member of CII.
Entrepreneurship tendency / Not encouraging
Growth of related industry / At present growth is very negligible due to recession in the market.
Potential for complementation / Low. At present NSIC Branch Office Ludhiana cover the area.