Development of Knitwear SMEs of Ludhiana
By J.N.Vohra M.Tech, B.Text, F.I.E, C (Eng.), M.I.M.A
Adviser- Knitwear Club, Ludhiana Ex. Technical Coordinator cum General Manager
Knitwear Facility, Ludhiana (A UNDP Aided Project)
Cluster Approach-A Case Study
Contents of this presentation
Ludhiana The Hosiery Cluster
Initial Surveys to assess technology status and Skill Gaps of the cluster (vis--vis European Standards)
Setting Up a Special Vehicle
The Mission & the execution to achieve Goals
Technology Transfer and Skills Development
Lessons Learnt
Ludhiana The Hosiery Cluster
The Cluster Map
Hosiery
Knitwear
Shawls &
Stoles
Yarns
Dyeing
Accessories
Processes Machinery
Skilled
Human
Resource End
Product for
Domestic
Market
End
Product for
Exports
The Technology
Initial Surveys to Assess Technology Status and Skills Gaps
(In mid 1970s)
Cluster Survey Done by International Wool Secretariat (IWS)-the Wool Mark People
Followed by
A survey done by UNDP experts
Above agencies felt there is need to demonstrate state-of-the-art technology to local entrepreneurs and Skills development to operate the same
Skill Status of a typical Exporting Unit
Skills Requirement
Setting Up a Special Vehicle
Government of Punjab Set Up
Punjab State Hosiery & Knitwear Development Corporation
The Corporation established a UNDP Supported project-Knitwear Facility-in Ludhiana
The objective of the project was
To demonstrate to the local entrepreneurs machinery
& processes (technology) and Skill Manpower so that
quality of their product improves to achieve
consistently European Quality Standards
The Execution to Achieve Goals Punjab Government Provided Land, Buildings & Utility
Infrastructure
UNDP provided State-of the-Art machinery, tools & tackles and foreign experts to train local manpower to handle updated technology
UNDP Experts also trained technical staff of the project and also deputed project personnel to foreign R & D Institutions to give them latest technology exposures
Running costs were met through Governmental funding, and some income generation through project activities
Project Activities Included
Providing technical assistance to the industry for
adopting the processes and skilling their manpower
Providing testing facilities to select raw-materials and
establishing product quality
Providing them consultancy to set up modern units
Lectures & Seminars were conducted
The Technologies Demonstrated
Latest systems of yarn spinning
Computer Aided and Fully Fashioned Knitting
Use of Special Purpose Machines for the Making up Knitwear
Use of Solvent Scouring Plant for the Finishing of Knitwear
Use of better quality yarns, knit structures and fashion
contents to produce superior products
Energy saving systems for processes
The Technologies Demonstrated
Were Leapfrogging
Were open to industry to see and adopt and the project had no Intellectual property right on the same
Disclosures for processes established were made without any compensation
Processes developed at the project were not patented and everybody was free to adopt
Leapfrogging Change
Computerised Knitting Hand Flat Knitting
Leapfrogging Change
Stitching with Linking Machine Stitching with Conventional Machines
Leapfrogging Change
Disorganized Operations Organised Operations
Leapfrogging Change
Disorganized System Organised System
Project Uptech of SBI for Financial Support to SMEs
When the Industry was ready to adopt newer technologies STATE BANK OF INDIA Launched Project Uptech Scheme for Modernisation of Hosiery Cluster of Ludhiana Concessional rate of Interests
Enhanced Moratorium for repayment
Reduced Margins on Loans
The Change
Exports in 1980 to Hard Currency Areas
Rs.80 Crore Only
Exports in 1995 to Hard Currency Areas
Rs. 800 Crore
At present Ludhiana Produces hosiery worth Rs.12,000 Crore
Exports are Rs.2200 Crore
The UNDP Project was wound up in 1995
Lessons Learnt
Small firms acquire state-of-the-art technology only when circumstances compel them and going become tough for them.at that time financial assistance is necessary
During boom period (when everything they produce is selling) they assume the myth that they are the know-all experts and would belittle the advise of the professionals.at that time they should be made to realize changes taking place elsewhere
Tech transfer does not come about quickly, even in the best of the circumstances, it requires large doses of preparation, experience, and availing the opportunity
The transfer of latest technology to industry offers local private machine builders valuable knowledge, expertise, and R&D effort which they might otherwise not be able to afford.
Small firms, in general, depend more on informal learning.
Proximity is perhaps the most potent means of enabling the informal linkages that are so valuable.
Trade and professional associations are among the oldest and most effective formal mechanisms for technology transfer.
It can be said
Technology transfer and skills development is like gardening:
No one can produce a rose on hard crusted land, but a good gardener can produce a better one by tilling the soil well, selecting the right seeds, getting the bugs out, and doing the right kind of fertilization, watering, and pruning.
Thank You