STI Policy – Framework and Operationalisation in

MSMEs

Mukesh GulatiExecutive Director

Foundation for MSME Clusters

Huge presence of MSMEs in Clusters

Type of Units Number of

Enterprises (million)

2006-07

Per cent of

Enterprises

Manufacturing MSMEs 11.5 100

Manufacturing MSMEs in

Clusters

7.3 63

Manufacturing micro

enterprises in cluster

6.9 60

Manufacturing micro-

micro enterprises in

cluster

4.9 43

Ranking of Sectors as per Contribution of MSMEs

SL No Sector- Census Employment Turnover GVA Export Total Average

1Food Products & Beverages

1 1 1 2 5 1.25

2 Textiles 2 2 2 3 9 2.25

3 Wearing Apparel 3 7 6 1 17 4.25

4Fabricated Metal Products

4 5 4 6 19 4.75

5Chemicals & Chemical Products

7 4 3 5 19 4.75

6 Machinery & Equipment 6 6 5 7 24 6

7 Basic Metals 9 3 7 10 29 7.25

8Other Non-metallic Mineral Products

5 10 9 9 33 8.25

Source: Tamal Sarkar, et.al. IAMR Study, 2012

Dimensions of Cluster: Thematic Challenges

SN Thematic Area Clusters (Products Only)

1 Energy IntensiveCastings & Forging, Steel re-

rolling, Foundry, Ceramics, Brick

2 Pollution Intensive

Leather, Dyes, Chemicals,

Plastics, Electroplating, Fly Ash,

Glass, Detergents, Dry Cells

3Socially not

responsible

Safety Matches, Textiles,

Leather

4

Examples of Technology Related Problems MSME face

• Electronic Weighing based Fruit Sorting System• Plastic Waste Sorting System for Five Types of Plastics• Biodegradable Plastics based on Natural materials• Composite Materials for Sports Goods• An apparatus and technology for the manufacture of

fused welding fluxes• Self Guided – Electro gas Welding Machine –

Indigenously developed • A process of forward and backward feeding of cold wire

addition technique in submerged Arc welding• Multiple Panel Cutting technology• Multiple colour Printing technology

Foundries – Indian Scenario

Total number of foundries

6,000 clustered in 47 locations • 95% MSME Units, only 5% large• Prevalence of traditional and obsolete technology leading to

higher energy consumption• Poor melting technology in the foundry enterprises leading to

high consumption of coke and higher carbon emissions.• Problems of solid waste disposal • Issues relating to health and safety of workers

• Technology up-gradation can save nearly 75,000 tonnes coke per annum• Improved practices of Occupational Health and Safety not only help improve the

work environment, but also ensure direct business gains.

The Foundry Sector Molten Metal Pouring in a bucket

Molten Metal to Moulds

Mould Preparation Casted and Machined Parts

Process

Job Hazard Watch this man.. Hand - eye

Watch this man.. Hand - eye

Under Factories Act 1948, foundries have been classified as Hazardous Industry

Pressure of Slag out Metal spark S..P..A..R..K

S..P..R..E.A..D

S..P..A..R..KS..P..R..E.A..D

Availability Fitness Accessibility Correctness

Business Case…..

Total no of workers required: 07 (2 for filling the basket, 3

for loading pig iron and scrap)

Total no of workers required: 03(1 for making the small size of scrap, 1 for loading material in the charger, 1 as helper) Drudgery chances also

minimized

Reduction in Labour Cost;

Increased Savings

Business Case…..

Commercial use of Waste

Slag- waste product for Foundry Industry

Slag utilized as raw material for Brick making

Business Case…..

Material Movement

Manual Material HandlingMaterial movement through

trolleys

Introduction of single Trolley includes an expenditure of Rs 2,000 and saved average 2 man days cost on daily basis i.e. Rs 800

Implementation Framework

1. Many MSMEs are aware of symptoms but not remedy & location

Step 1: Educate Step 2: Identify exact technology needs

2. Most MSMEs not well versed with process of Technology Transfer

Step 3: Identify firms with similar needs Step 4: Create a network of

like-minded firms

3. S&T communities do not have outreach to industries Step 5: Identify

the Supplier/ Provider Step 6: Negotiate with supplier/ Provider Step

7: Organise service providers for transfer process

4. Marketability is a major challenge in front of S&T communities – Step

8: Business Case Development & Presentation

5. Enterprises are excited given the solution but require handhold

support Step 9: Engage a Linker between Provider & Seekers

6. Enterprises need support for non-technology areas viz. Financing,

Labour training etc. Step 10: Role of facilitating agency

THANK YOU