CASE STUDY: SOURCE –INDUSTRIAL SURVEY 2011.
Cluster development methods stimulate innovation and improve productivity leading to a critical element of national and regional competitiveness. It is a protective and proactive promotional measure to support the privileged small players. Precisely micro enterprises integrate their competitiveness in the changed and challenged business environment.
Safety match manufacturing cluster is an artisan type cluster with about 2000 plus handmade safety match manufacturing units each growth centre located at VIRUDHUNAGAR, SATTUR, KOVILAPATTI KALUGUMALAI, SRIVILLI-PUTTUR and GUDIVATHAM all in the state of tamilnadu. The industry has generated employment to about 2.5 lakh people both direct and indirect. These clusters are unable to withstand competition emerging from the mechanized players. Hence it was decided to form small groups and establish cluster federation consortium (CFCs) in the mentioned six growth centers with the active cooperation and support from central and state government. Six consortia have been constituted by groups of likeminded entrepreneurs each group having 25-35 members. The all India federation of cottage matches manufacturers association, VIRUDHUNAGAR has played a proactive role for strengthening the clusters by encouraging all the players in the cluster to catalyze their synergies in specific areas like marketing, investment and technology transferring process, modernization and the like. Prior to the formation of these consortia the small players were being exploited.
A number of people got opportunity in the CFCs besides a few micro enterprises started their business in rural areas the CFC is the breeder of employment opportunity. The CFCs set up in six growth centers have started supporting members and non members of the handmade safety matches enterprises housed within the vicinity of 10 km. all the six consortia have created a common brand in the name of UNITED MATCH.
The above achievement is an eye opener to other MSE players. Timely support and intervention initiated by the ministry of MSME-DC, MSME, G.O.I and the dept of MSME tamilnadu, IOB bank are instrumental in making the project a success.
WHY CLUSTER DEVELPOMENT?
The vision of the industrial cluster is to improve core competency by creating a strong technology base for MSME players. THE INTERVENTION IN SAFETY MATCH CLUSTERS SEEMS TO BE FIRST OF ITS KIND IN THE WORLD. Six identical projects proposals have been approved and financial assistance to the extent of Rs 85.54 lakh from the central government and 10.73 lakh from state government was extended. CFCs were established in SGOSERVE, SALEM and Wet grinder cluster in COIMBATORE will become more competitive through the establishment of integrated CFC for cost reduction, quality enhancement and new market penetration. The Brick cluster in THIRUNALVELI and Ceramic cluster in VRINDHACHALAM are real artisan clusters. www.mseclusters-tn.com , portal will map MSME clusters in tamilnadu and will create awareness on cluster revaluation and success of group dynamism to public cluster movement is the only solution to achieve sustainable development and spatial integration.
