Mukesh Gulati Foundation for MSME Clusters New Delhi

By
Mukesh Gulati
Foundation for MSME Clusters
New Delhi
Conventional cold blast cupola
Divided Blast Cupola
2
Molten Metal Pouring in a bucket
Molten Metal to Moulds
Mould Preparation
Casted and Machined Parts
Existing Chaff cutter
Chaff Cutter Under Design Stage
Greener Product
Neetu
Sheet
metal
cover for
the blade
assembly
3 HP
Motor
Service
window
Cut chaff
to slide
out
Strong
Branding
All covered stand
made up of sheet
metal and less of
Firm angles
groutin
Chinese & Australian Chaff Cutters
Another Innovation – Paver Blocks from
Solid Waste to make paver blocks
 Few thousand bricks developed and being used in select
locations
 Bricks developed using pressing and vibrating machines
 Business plan prepared
Different designs of bricks
Paver Blocks developed out of solid waste
Options for Material Efficiency
Greener Product
Greener Process
Managing Waste
Foundry industry Scenario
 Foundry units around the world
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-China: 30,000
-Europe: 8,000
-CIS constitutes 4,000 foundries
-India: 5,500 foundries
Clustered in 45 clusters ranging from 30-500 units.
95 % of the foundry units are small; 5% are medium/large units
Northern India has about 1,000 foundry units
Energy cost is 30% of production cost (70% in melting) through coke,
furnace oil, natural gas and electricity
One MT of coke often melts 4-6 MTs of metal (Best 10-12 MT)
Potential to save coke approx. 25,000 tons p.a. in North India valuing
USD 6 million per annum
Batala
Goraya
Jalandhar
Kaithal
Narwana
Samalkha
Gurgaon
Faridabad
Agra
Bhiwadi
Jaipur
Ahmedabad
Rajkot
Bhopal
Indore
Jamshedpur
Dewas
Vadodara
Aurangabad
Kirloskarvadi
Satara
Kolhapur
Nagpur Raipur
Cuttack
Pune
Sholapur
Sangli
Belgaum
Shimoga
Mysore
Tiruchirapalli
Coimbatore
Howrah Uttarpara
Kharagpore Calcutta
Diamond Harbour Road
Liluah
Hyderabad
Nellore
Renigunta
Bangalore
Chennai
Sholingur Sriperumbudur
Dindigul
Ranchi
Gudur
Ennore
Ponneri
Foundry Cluster
Foundry units with
capacity – 50,000
tones per year and
above
Building on foundations laid in the Past
100 Enterprises in 15 years
 Some organizations like
 TERI with SDC support
 State Bank of India through UPTECH program
 PSCST with DST support
 SIDBI through its cluster programme
Positively demonstrated DBC technology across India over
the last 15 years (1993-2008)
 But the number of units changed to DBC is about 100
 Even though the savings were clearly demonstrated
Scaling up to 100 more in 4 years (2008-12)
 Across 3 cluster locations in Haryana (North India) at
Samalkha, Faridabad and Kaithal
 Slow start initially (5 units in first year) that led to
rapid expansion in later years
 Ministry of Science & Technology and GIZ funded
initiative separately
 Cumulatively 50 Cupolas upgraded and another 50
enterprises changed operational practices
 Total coke savings: 4,400 tonnes worth Rs. 5 crores
(USD One million)
Scaling up to 500 more in 4 years (2012-15)
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Through 80% EU funding under Switch Asia Facility
That targets 18,000 Tons of coke savings p.a.
Worth Rs. 25 crores (USD 5 million) p.a.
Across 7 new locations in Punjab (North India), Rajasthan
(North India) and West Bengal (East India)
Slow start initially (20 units in first year)
With GIZ, GRI, IICA, SIDBI and UNIDO as partners
250 Cupolas to upgrade and another 250 enterprise to change
operational practices
Industry Association Capacity building; Aggregate reporting
initiative; Building new financial products & financial
linkages; Supporting govt. for access to public schemes of
assistance
A Question arises ……
Why does it not self spread when business case exists?
Reasons
Technology
acceptance
barrier
• Bank Linkages
• Costly
technology
Investment
barrier
Awareness
Barrier
• Weak associations
• Untrained fabricators
Lack of consultants
willing to work with
MSMEs
• No incentive
for contractual
labor
Activities Undertaken
Class Room Sessions
Exposure visit of
ITI students
Monthly review meetings
Workshops and
Seminars
Expert guidance
Indian Cluster Scenario
Scale: Sectors-6; sub-sectors-11; Total clusters–196; Energy consumption- 30-35% of
the manufacturing cost. Huge potential for intervention
Better Designed Products: Product innovation is very limited across most subsectors
Improved production methods: Several pilot initiatives in the past that need to be
up scaled
Waste Management: Mainly undertaken as end-of-pipe treatment under the pressure
of regulatory authorities, media and community
Way forward - Up scaling
 Set up benchmarking/reporting systems at aggregate levels
 Continue developing new pilots to refine methodologies
 Govt. initiates regional/ national missions on key sub-sectors
 Picking low hanging options first
 Using cluster approach
 Provide appropriate acceptable & commercially viable solutions
 Strengthen local industry associations and spread awareness
 Create nation wide cadre of specialised consultants and
equipment providers
 Recognise and reward enterprises, associations, institutions and
banks
 National study of industrial symbiosis needed at cluster level to
look for options of recycling waste of one as input to another
 Create new financial products and ensure reach out